I can't believe it.
I can't believe it.
If these results are significantly different from what will be reported next month, the investors will keel haul MH all the way back to the Danube river. Not even he is that stupid. I think they’re just being spun because they’re pretty underwhelming as pointed out below.
I see why they are spinning the results....Last year's EBITDA was $298 million, so $291 million was a slight decline to go with the flat revenue. Doesn't exactly make it seem like cengage unlimited is lighting the world on fire.
No, don't believe it... Read the fine print beneath the marketing BS paragraph:
"Cautionary Note Regarding Preliminary Financial Results for 2019 Fiscal Year and Non-GAAP Financial Measures
The expected 2019 fiscal year financial results are preliminary, unaudited and subject to completion. We caution that the preliminary financial results for the 2019 fiscal year are not guarantees of future performance or outcomes and that actual results may differ materially from those described above. Such preliminary results are subject to the closing of the 2019 fiscal year and finalization of accounting and reporting procedures, which have yet to be performed, and should not be viewed as a substitute for full 2019 fiscal year financial statements prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). Cengage will report its full audited Fiscal 2019 Fourth Quarter and Full-Year (Ended March 31, 2019) results in mid to late May. For more information and call information, visit: www.cengage.com/investor. This release contains Non-GAAP financial measures. See end of release for a definition of these Non-GAAP financial measures and rationale for their use."
The proof will be in the bonus. If this is a no or minimal bonus year, then the performance was not up to what the owners expected.
Interesting that they felt the need to rush this out prior to the earnings call. Smokescreen? Flat YOY revenue (and I'm sure they pulled every financial reporting trick in the book to get there) is not good news when you've been in decline since bankruptcy.