I see in the filing today for delay of 10k just horrible news. Cash and cash equivalents were approximately $20.5 million as of March 12, 2014. As of March 12, 2014, the Company had $12 million drawn on its $17 million commitment from Crystal Financial LLC. This means if they did not tap revolver cash would be 8 million. Just seeing aro results and projected cash burn for 1st q i think body may be facing a cash crises right now if lender does not advance more. Availability of 5 mill is razor thin and i am sure lenders are concerned.
Heald ebitda before corp overhead is 45 mill and heald schools performing better than pre acquisition. Some schools lost cal grants 1 year ago which will be reinstated over this year and next. Look at comparison sales of schools in cali and 250 mill for heald is a steal. They paid 420 mill with working capital 4 years ago. Call any private equity player in school space and they will agree.
the talk of coco filing 11 is silly. The company is generating positive cash flow and Heald is worth at least 250 million probably 300 million. The enterprise value adjusted for working capital is 200 mill. You get everest for free. At some point in 2014 the legal issues with attorney generals will be settled by the industry and gainful employment will be done and over. Then guess what coco will still be standing and making money. COCO is not a fraud. They teach a high risk student population. The students try community college first then when they drop out their they go to coco. Its their last shot at getting a skill. No one will provide that for free. If Obama wants the community colleges to do this have him pump in billions to subsidize the students. Obama talks out of both sides of his mouth in regards to high risk students. Community colleges dont want these high risk students. Community colleges are bureaucracies they have no incentive to help high risk students. I suggest all the bears go to a coco school and do some due diligence. You will change your mind after visiting a school. These students may not be very educated but they are street smart and would not place 10k to 20k in debt on themselves if they did not see some benefit. Those that do drop out drop out drop fast and are not saddled with debt. For those that make it out having 20k in debt but having some skill is better than welfare your whole life. I know students graduating from mediocre private colleges 100k in debt who will never earn more than 50 to 60k a year. Should we shut down those schools.