It's yet another week without an Earnings Report. It appears EDMC may wait until the last day to issue the report. Lots of information have been made public already, including the deal with its major debtor KKR. When the report does come out, it will report that shareholder interest has been diluted approximately 95%. This deal has already angered shareholders (outside of the two major players--Goldman Sachs and Providence Equity). The report will also discuss the huge legal issues that are not likely to go away soon--and may get worse in the near future (e.g. more stockholder lawsuits). Some shareholders are calling for the firing of the CEO and other key personnel, but that won't make much of a difference at this point--especially when it comes to changing the business model. The question now is who will be affected by the crash in stock value and what will the implications be for students and their families as well as workers and their families. I'm sorry that students and workers were not made aware of the structural problems years ago, because these issues go back several years, with the presence of banks (e.g. Goldman Sachs and Wells Fargo) and hedge funds in this failing business model.
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@Anonymous34544, the problem is that Goldman Sachs and Providence Equity essentially call the shots.
Wouldn't the shareholders get more value if the company assets were liquidated instead of basically given to the the debt/bond holders if they are only get 5%. There is definitely value in the system after they clean house. I think you will see alot of shareholder lawsuits come out of this. $1.1B for 95% seems pretty low especially for the value of AI.
@Anonymous34040, you may be right. It looks like Goldman Sachs, the bank that largely destroyed EDMC and the Art Institutes, is controlling the crash. It's very difficult to know how the remaining assets will be used, sold off. At least two of the brands may survive, but most workers should not delude themselves into thinking their jobs are secure.
They will not close overnight because there is still some money to be squeezed out of it. Between the Management and the Creditors, they will grind it down into the ground extracting every penny until its just a shell of its former self, in name only.
EDMC should just call it a day and shut their doors. There have way too many problems that they created for them to survive. They should just do it so everyone can move on. Unfortunately, I predict a slow painful death.
Shut up and go back to work you peon bitches
The stock won't drop below the 1$ threshold. KKR and the other investment groups do not want to lose money right after taking over. They will probably look for ways to trim (restructuring) and develop a level of confidence for investors. What will probably happen is a consolidation of campuses, maybe the closing of, or sale, of one of the brands and attention given to a more profitable brand to help it grow (possibly AI?). The campus heads (notice I didn't say leaders - that's another post) will NEVER tell the truth because their instruction is simply to MANAGE the issue. Yes, this may be unpopular to some however, when the ax falls these same MANAGERS will say they didn't know or say in some other corporate friendly tone that they were "surprised". It's only a matter of time. 2015 is when the biggest part of the new "takeover" finalization will take place but until then there will be a micromanaged approach that becomes so unbearable that many will leave and cause business to suffer. The "higher ups" do not have a real clue about building a business since most have only managed a business for someone else. There IS a difference and the lack of skill in that "difference" is what will cause the crash talked about in this thread.
961- It takes 30 TRADING days below $1, and then there is a 6 month correction period.
If the stock drops below $1 dollar it will trigger an automatic process to be kicked off the stock exchange. Not sure what happens then, but I would guess it would be a whole new set of financial problems. Any finance guys here know what happens at that point?
AI is the same way. They like to hire teachers who went to prestigious schools, then go so far as to brag about it in their marketing material. So AI is doing the exact same thing they want to claim doesn’t happen in the real world. The value of a degree is directly related to the reputation of the college. Poor Reputation = Lower Job Opportunities.
My guess: NT 10-K for both EDMC and COCO. Maybe on the same day.
The delay and lack of earning info is very concerning and unprofessional. What an embarrassment this company is. They offer business degrees? Lol.
Yep agree, massive lay-off and campus closings are the only way for them to survive. Imagine all the money you would save if you merged three campuses into one. The same amount of students would probably want to attend, but you would cut your management staff by 2/3rds. And you could retain most of the instructors to match the higher student population.
@Anonymous33663, you sound very much like a manager or a corporate shill. Yes, there will be more in the Earnings Report, and it will not be good. EDMC has already projected significant enrollment and revenue declines in 2015 (see link below). I have been trying to communicate with the Ontario Teachers Pension Program (OTPP) about the millions of dollars that retired teachers have lost and face to lose under this new debt agreement. Other institutional shareholders will be angry if they aren't aware already. Shareholders (other than giant micro-traders like Goldman Sachs)have lost almost everything they have invested. I cannot imagine some major changes at every level of EDMC, not so that EDMC survives, but for parts of the enterprise to survive at least in name. The only "positive" announcement EDMC could make from a shareholder perspective would be massive layoffs and site closings....... http://www.bloomberg.com/news/2014-08-29/education-management-sees-enrollment-falling-through-2015.html?cmpid=yhoo
You do realize there could be other things holding up the Earnigs report right? I am giving you credit for not being the moron you sound like.
What is idiotic about the post? Do YOU know it to not be true? If so, give a more appropriate reply.
What is idiotic about the post? Do YOU know it to not be true? If so, give a more appropriate reply.
Do you have any idea what a moron you sound like?