Thread regarding Corinthian Colleges Inc. layoffs

For sale? Impairment testing.

I don't consider any campus to be for sale. Even the so-called Heald sale is only to avoid having to deal with, in my opinion, the lies about the $200M in goodwill. Heald supposedly, by CCi's calculations, has at least the $200M worth of value, but it is my opinion that was a result of financial engineering so that the goodwill would not need be impaired. I'd like to see the computations behind the so-called interim impairment test.

"During the third quarter of fiscal 2014, the Company’s market capitalization was below book value, which the Company considered an indicator of impairment. Consequently, the Company performed an interim impairment test on goodwill and other indefinite lived intangible assets. The Company believes that continued regulatory uncertainties, and the potential impact of new regulations, have had a sustained negative impact on the Company’s stock price and current fair value. The Company’s results of the interim impairment test did not indicate impairment. The Company will perform its required annual impairment test for goodwill and other non-amortizable intangible assets as of June 30, 2014.

At March 31, 2014, the Company has $205.6 million of goodwill; $197.9 million relates to the Heald reporting unit and $7.7 million relates to the 2013 QuickStart Intelligence Corporation (“QuickStart”) acquisition—See Note 10 — Business Acquisitions and Dispositions. The Company’s interim impairment tests, as of March 31, 2014 did not result in an impairment charge. However, goodwill impairment assessments of the goodwill related to the Heald acquisition involve significant judgments related to future revenues and earnings. For Heald, the Company assumed a weighted average cost of capital (“WACC”) of 12.9%, revenue growth rates ranging from (9.3%) to 11.7% for fiscal 2015 to 2017 and a terminal growth rate of 4%, which resulted in fair value exceeding carrying value by approximately 6.4%. These assumptions reflect the lower risk of Heald relative to the Everest schools resulting from less historic exposure to ability to benefit (“ATB”) students and to regulatory uncertainty. Although the Company believes the estimates made are reasonable and supportable in connection with the impairment analysis, changes in strategy or market conditions could significantly impact these judgments and result in future impairments."

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Post ID: @OP+wOBSHV8

18 replies (most recent on top)

Corinthian Colleges Is Closing. Its Students May Be Better Off as a Result.

http://www.nytimes.com/2014/07/03/upshot/corinthian-colleges-is-closing-its-students-may-be-better-off-as-a-result.html

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Post ID: @1gp9+wOBSHV8

Once-mighty Corinthian Colleges chain is at the end of its run

Accused of misleading students and falsifying records, one of Florida’s — and the nation’s — largest private, for-profit college chains is being forced to sell campuses or close its doors.

Read more here: http://www.miamiherald.com/2014/06/30/4210560/once-mighty-corinthian-colleges.html#storylink=cpy

http://www.miamiherald.com/2014/06/30/4210560/once-mighty-corinthian-colleges.html

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Post ID: @1sUt+wOBSHV8

Durbin is shutting down CCI in IL. That and vets in CA not able to enroll

At CCI, it's probably the beginning of some serious pushback by individual states and govt entities. How do you spin that to your benefit?

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Post ID: @1hD8+wOBSHV8

If everyone is just in mass denial about their jobs, be very careful. I was an adjunct in good standing last term. I was even assigned several classes this term and told by my boss that my course shells looked great. I got not a single student this term. Mass layoffs of adjuncts at ECPO to save money. I no longer am working for ECPO but have yet to be told. An earlier post indicated that he or she was at a teach out school and was given a severance deal, which they have now rescinded. In June, every employee at the teach out schools had no reason to believe they would lose their jobs, but they did. I'm not trying to be a doomsdayer, but people are losing their jobs left and right. So, it might be in your best interest to start planning ahead a little bit, especially if severance won't be honored.

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Post ID: @dqm+wOBSHV8

It won't matter what accreditation it has. If they sell, the existing school (buyer) will absorb the school and rename it into their brand. CCI brands will not exist in one year. And the sales are for each school. Not all if them together.

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Post ID: @iPj+wOBSHV8

"boat anchor brand of Everest"......That is so true. I am guessing the Higher Learning Commission hates they day they gave an accreditation to the boat anchor... LOL

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Post ID: @ydS+wOBSHV8

So the boat anchor brand of Everest has one (1) school with with regional accreditation. That one school has two (2) satellite campuses. The accreditation maybe pulled from the boat anchor brand, or just MAYBE transferred to a new buyer........should anyone want a new boat anchor. http://www.ncahlc.org/download/_PublicDisclosureNotices/Everest%20College%20Phoenix_PDN%20Revised%207-17.pdf

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Post ID: @mHr+wOBSHV8

What does that giant 'goodwill' quote have to

Do with the sale?

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Post ID: @Y8f+wOBSHV8

Well, my opinion is you are really clueless. Ignore what CCI says, the DOE says, the media says, and internal employees regularly posting about potential buyers marching through the halls. I think facts speak louder than your random opinion.

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Post ID: @Kaj+wOBSHV8

They may or may not be for sale. But even if it's really not for sale (which it is) that doesn't mean people aren't getting fired. Mass firings last Feb. adjuncts at ECPO slashed (I.e. Fired.) 12 teach out school employees. Fired. Schools without a line of credit. Low enrollment. Sketch your reality any way you want it and ignore the facts. But ease don't feel secure in your job. No job is secure if your employer is CCI. Nobody.

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Post ID: @OWV+wOBSHV8

The length at which employees will go to be in denial about the future job losses is incredible. Do you think the teach outs are a myth, like the Moon landing? What you are saying makes no sense. It's entirely possible they messed with numbers. So what? That has nothing to do with whether it's for sale or not.

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Post ID: @37U+wOBSHV8

Anonymous23296- Thanks for your opinion!

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Post ID: @UGp+wOBSHV8

Your opinion is foolish. Don't consider it for sale. Since you are not the buyer or the seller, nobody cares about your opinion.

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Post ID: @nPD+wOBSHV8

"Our college is a regionally accredited institution accredited by the Higher Learning Commission and is a member of the North Central Association (www.ncahigherlearningcommission.org, 312-263-0456)."

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Post ID: @WAV+wOBSHV8

http://www.cci.edu/schools/everest/campus/phoenix

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Post ID: @C4E+wOBSHV8

What is ECP????????

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Post ID: @lXX+wOBSHV8

ECP has regional accreditation also.

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Post ID: @O49+wOBSHV8

The Heald brand has regional accreditation through WASC, which is the only brand within CCI with this type of accreditation. That means Heald is worth more than all the rest of CCI combined.

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Post ID: @aZ3+wOBSHV8

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