They have more problems that they aren't disclosing. Rumor is that they have employment law violation charges filed against them with the state and the EEOC. They are quiet about this because if they lose they could lose their eligibility to sell to any school that takes federal grant money.
There are also rumors that their "restructuring" has not gone well and their new computer system is not going well either. They are reported to be way over budget, behind schedule and performance issues have cost sales.
If you look, core business sales have been falling over the last 4 years. They says they are "growing" by acquisition, but they only seem to tread water.
This turkey could well be circling the drain if the downturn in school spending lasts more than a year. Also remember that Cerberus was interested in a buyout about 2 years ago. They took a serious look at the books and decided to pass. That is not a good sign.
Another strike against them is that the original founders still own a majority stake. A much needed shake up in management will never come.
Management has done everything right and reduced costs early to prepare for the down business climate. A few more weeks and good news will be reported concerning the bottom line. We can only go up from here.