You need to do some sizable enrollment reductions so CCI can feel the pain. If that sounds simplistic then well it is because it is that simple. Tell your friends and colleagues that friends don't let their friends go to a CCI school.
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marketing cost is still cost.
That's "Net Income From Continuing Ops." Which includes the marketing costs. Marketing costs are never included in profit.
Gross profit may be 600m but net profit is only 18.61m.
CCi has no cash, and has been burning through it (from the balance sheet).
They have a very low cash on hand per share ($0.38) compared to the other for profit institution.
http://www.marketwatch.com/investing/stock/coco/financials
CCI doesn't have a net profit of $600 million.
You are a douche
Did you read? All numbers are in THOUSANDS $616,689 THOUSAND = $616,689,000, or more than $600 MILLION.
$616,689 is very different than $600,000,000. For company with 1.6 billion in revenue, 600k is a huge disappointment.
@6204- You have no idea what you are talking about. Profit is not on the balance sheet. I will copy and paste each year below:
Gross Profit (as listed on the INCOME STATEMENT)
(all amounts in thousands)
June 30, 2013
$616,689
June 30, 2012
$626,273
June 30, 2011
$727,749
CCi is very profitable.
@6202, untrue. The following is straight from their balance sheet. They had 1.6 Billion in REVENUE, but a NET LOSS of 1.7 million.
Net revenue was $1.60 billion versus $1.58 billion, an increase of 1.2%.
Net loss was $1.7 million, which includes a $3.6 million impairment, facility closing and severance charge, and a loss from discontinued operations of $20.3 million, compared with a net loss of $10.2 million, which includes a $15.6 million impairment, facility closing and severance charge, and a loss from discontinued operations of $27.7 million.
Income from continuing operations (after tax) was $20.7 million, compared with $26.8 million, excluding impairment, facility closing and severance charges in both periods.
CCi has posted over $600,000,000 in profit each of the last three fiscal years.
Actually CCI is losing money at the rate of $1.25 million a month (or even more). I agree that the enrollment doesn't have to go to ZERO but clearly the closer it gets to zero then the more likely CCI starts feeling real pain. CCI really doesn't have that much cash to ride out a long storm anymore. The California lawsuit is likely to be a minimum of $1 Million in legal expenses should the case not settle. Heald College is no longer the money making operation that CCI was hoping for. CCI pulled out $40 million by selling Heald College properties and are now renting them back. After 3 years of CCI mismanagement of "running Heald into the ground", CCI is starting to feel the pain. From 2010 to 2012, Heald College had good enrollments as CCI used the Heald's 150 year reputation to just fill up the place with warm bodies. 4 years later, employers of Heald grads in the past won't take them today because of "poor student learning outcomes", the graduates from 2010 to 2013 telling all their friends not to waste time or money going to Heald, California suing Heald (along with the rest of CCI) for false job placement statistics.
Zero is much lower than needed; a level that doesn't cover the cost of delivery will do, which is much greater than zero. A campus would likely lose money if it only had 50 student, since the expenses would be greater than revenues. Among other expenses, the rent must be paid, so if the revenues are not high enough, CCi will cease to exist. That said, CCi is and has been profitable for years (take a look at the income statements Profit is listed near the top). It's the marketing and administrative costs that gobble up that profit, so net income is near zero, or a loss.
Certainly CCi cannot give up all the commercials on Maury--you know he is your baby daddy, and you will have a lifetime of baby daddy drama. Now go to Everest so you can get a real job.