"Total current liabilities 274,381" Ok, so CCi owes $275 million in the next year. Let's see what they have in assets to meet all those liabilities. We know they have $28 million in cash. Let's see $28 million to run an enterprise that has over 10,000 employees. Ok, well, let's go another way, $28 million for a company that has about 100 campuses. Is that sufficient cash, or should I expect to find upper management down at the local payday lenders? I'm not sure. Enough of this, let's get back to the other assets. "Total current assets 196,509" So they have $197 million in current assets to pay $275 million in current liabilities, while the level of cash went from $47 million on June 30, 2013 to $28 million on March 31, 2014. During that same time current assets and total assets went down. While that might be explainable, both current liabilities and total liabilities went up, even with the confiscation of the employee vacation time. This brings me to a question that I've been wondering about. Did CCi pay the vacation for those employees that had accrued several weeks of vacation and then were laid off a month later? Where is all the cash going? Let's see. Expenses are primarily fixed, except for the layoffs, yet revenues are down over 10%. After burning through roughly $200 million in cash, laying people off, reducing prices to increase revenue, what’s left? Then there is the biggest problem that I see. While infinite cash might be able to fix any problem, it’s only a long-term solution if the cash is truly infinite. We all know that cash is finite, so let’s take a look at the labor force. On this forum there have been many comments that suggest a few things: 1. Experienced workers (=high paid) are being replaced by inexperienced (=low pay) workers; 2. The company has an exceptionally high turnover rate, especially in the area of admissions; 3. It has been suggested that the workers who are the most productive, and not necessarily the ones that just keep saying “yes” to management, are the ones conveniently selected to be laid off; 4. It has been my past observation that when companies get in trouble, often, but not always, the most talented workers leave before the depth of the problems are obvious. The question becomes: Can people off the street with the correct CampusVue access actually run the place effectively?
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CCi has been guaranteeing the loans purchased at 100%. I suspect there are too many cracks "In CCi we Trust" to make the guarantee low risk. Thus CCi has few options but to revive its Genesis loan program. I wonder about the 90/10 rule. The 90/10 rule is based on cash based accounting. In other words actual cash payments must be received by CCi before it can count that as part of the 10%. Alternatively, it's simply not enough to have a student take out $9,000 on $10,000 in education; the other $1,000 must be collected, in cash. Now that all the people who collect cash are gone, how is CCi going to collect those Genesis loan payments? CRAZY!
...and CCi is reinstituting its predatory Genesis loan program......http://seekingalpha.com/article/2195133-corinthian-colleges-coco-ceo-jack-massimino-on-q3-2014-results-earnings-call-transcript?part=single
"We will confiscate your earned vacation 30 days before we get rid of you."
As soon as the vaction plan changed, all accrued faction was lost by employees. Most vacation was lost by longtime employees. No earned vacation was paid as of 1st day of new vacation plan.
It seems under the new (use or loose) many employees were booted before they were able to use it.
INTeGRITY??
The whole operation is already run with smoke and mirrors. Why should anything change now?