I am long here. But alert. On my toes! Their cash doesn't mean much if this turns out to be a vehicle to enrich management. The really high salary arrangement with the new CEO casts some doubt. It may take at least 2 quarters to see if he is the real deal or just a puppet to transfer all that wealth to the BOD and management. EBITDA positive is not a realistic measure here as the company loses money and loses business. I will personally give this 3 months, 1 quarter, to see if new, laser-focused measures are taken by the CEO to turn this ship. Then, I will double or triple my position.
i actually just found this while combing thru the 10q
"Included in cash and cash equivalents, unrestricted within our unaudited consolidated balance sheets are amounts related to certain of our European campuses that operate as not-for-profit schools. The cash and cash equivalents related to these schools require that the funds be utilized for these particular not-for-profit schools. The amount of not-for-profit cash and cash equivalents was $79.8 million and $87.2 million at March 31, 2013 and December 31, 2012, respectively"
they can report $80m cash as unrestricted even though it technically is restricted. i didn't even know they had "not for profit" schools.... does anyone have more insight/details on this?
also interesting to know is they only have $2.5m cash within the restricted account reserved for lawsuits. i was worried they would have set aside a bigger portion for the lawsuits, however i believe they were excused from the biggie as it is taking aim at gary mcoullough. it's a very similar lawsuit to the one apollo had to pay $140m on.