K12 Inc. First Quarter Results are Bad: Time for a Change of Course?

GraphAt CAVA, teachers have been saying for years that more resources must be focused in our classrooms. A number of recent academic studies about online charters echo concerns we have raised about the under funding of instruction at our school (we will provide a more detailed summary of these studies in our next newsletter).   We believe our schools could be better if educators input were taken more seriously, instruction was prioritized over administrative tasks, and teacher turnover was actually considered a problem that should be fixed. Unfortunately, K12 Inc.’s priorities have too often focused on shareholder return rather than classroom success. We know that strategy has hurt our classrooms. It appears it has also hurt their bottom line.

K12’s first quarter conference call with investors took place on October 27th with the company reporting losses totaling $12.8 million and a 6.5 percent drop in revenues. Additionally, K12’s stock price continues to plummet, falling 19 percent over the past 12 months. In fact, it is currently at its lowest level in the past five years. This likely isn’t the news investors were hoping to hear as the tech-ed giant kicks off its 2016 fiscal year. Still, analysts are recommending investors hold out and not sell off their shares quite yet, as the company anticipates a slight uptick in its second quarter, projecting profits on operations in the range of $10-$15 million. While the company is far from going under, falling stock prices and declining revenues are contributing to some vulnerability, particularly in an environment in which the public and regulators are becoming increasingly critical of K12’s for-profit model and increasingly aware of the need to ensure for-profit education companies like K12 Inc. are held accountable to the communities and the students they serve.

Faced with these challenges, CAVA and K 12 Inc. will have a choice: improve the quality of education at our schools by making sure a larger portion of our resources are focused in our classrooms or try to send more of our valuable resources out of state to K12 Inc. HQ in Virginia. Obviously, we believe improving our schools by spending more resources in our classrooms is the answer. We’ve been saying that for years and will continue to press for these positive changes. We think it is time CAVA and K 12 Inc. listen to front line teachers who are doing the work, and sit down and work with us to make the necessary changes here at CAVA. Now that our union is certified, we have an opportunity to do that!

3 thoughts on “K12 Inc. First Quarter Results are Bad: Time for a Change of Course?

  1. is this really about the students? What does maternity leave have to do with my child’s education? Is this about the children or the unions? Many parents send their children to charter schools because of the damage unions have done to traditional public schools? Cava teachers have it pretty good- they are able to give class connects, still take vacations, have crying babies in the background, and I know if one teacher that was upset because I called him out for not teaching. Seems some not all of these teachers want a covered Union pay check but don’t want to teach. Unfortunately, as a parent I have seen this I public charter school and public schools. If your heart is not with the children and only securing a nice fat pay check as a taxpayer I demand you step aside. And let’s be truthful about unions their popularity has decreased but higher ups love their big fat pay checks too just as the executives of this school.
    Now you say the school is failing- this school gives kids likey son a chance to graduate. I am able to coordinate with the teachers, I see a lesson plan, he has all his materials, and he works at his pace. If you are reaching only one child then it is worth it. Make an avenue through this school helps decrease welfare and prison population. Teachers remember it isn’t all about You and your benefits – kids lives are at stake and walking off the job or deleting grades is so unprofessional!!! Yes we had a disgruntal teacher delete grades- what point is that making. Quittting – what point is that making- other than you are like so many people in thes kids lives – quitting on them- surely there are other ways to voice your demands!!!

    • We appreciate your note, and are sorry you have had some bad experiences at CAVA and elsewhere. However, we do respectfully disagree with your characterization of teachers at CAVA, teachers at public schools and teachers’ unions in general.

      As CAVA teachers we are very concerned about our students, and that is precisely why we are unionizing. It is important that teachers are able to advocate for their students without fear of retaliation. Additionally, we believe that more teaching time and focus ought to be spent on our students. We also believe that less teacher turnover is important and will build a stronger learning environment for our kids.

      We wish you and yours the best in 2016,

      CAVA Organizing Committee

  2. There is no fat paycheck at all with CAVA, I have seen their paychecks, they are menial compared to the ones in public schools. Unions are created for a reason, and that is to stand up against unfairness. I am a parent teaching my 2 school kids, they are thriving under CAVA. Also ALL teachers are committed, dedicated, and very compassionate towards their students, this is not about having children shouting in the background and nursing their babies during Class Connect sessions, they are not whiny or disgruntled about their paychecks and by the way it is not FAT paycheck. These teachers dedicate their time and effort, to be at home with their families and at the same time using their skills as teachers to teach children, that is why we have virtual academies, if someone is not happy with the way things are, send their kids to public schools! Having a child/children at home is a blessing and a plus as a parent because you can watch your kids from home and see what they are doing. I cannot imagine sending them to public schools or anywhere else where they end up doing things that might hurt themselves in the future. I stand for unions for teachers because they need a place to voice their concerns and what is unfair to them!

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