Thread regarding Education Management Corporation layoffs

EDMC Stock Price at All-Time Low...Earnings Report Clock is Ticking

Usually there is a press release that comes out 2 to 3 weeks before the Earnings Report, giving the exact time, date, and place for the report.

That press release is almost always posted on Yahoo Finance. Yahoo Finance has estimated Aug 4-Aug 8 as the period when the Earnings Report should be expected (the last Q report was 4-30-2014). Yet there still is nothing posted. FYI: EDMC stock dropped 8% today, to an all-time low of $1.12. The stock price has dropped more than 90% since November 2013. Zacks estimates that Earnings Per Share will be at a loss, but we won't know for sure until the Report comes out. FYI: EDMC workers and students of Art Institutes, Argosy University, Brown-Mackie College, South University: It's hard to imagine EDMC being able to maintain the status quo given its huge debt obligations and junk bond status. Unless Goldman Sachs (the big bank that destroyed EDMC)decides to bail out the company, that probably means creditors will require them to do MAJOR downsizing.

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33 replies (most recent on top)

Camden- Did you look at companies whose stock went down 90%+? From my own observation the ambulance chasers are always present.

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, looking at Yahoo Finance press releases over time, I would say it's a high number. And those law firms are just the ones who are publicly and actively looking for more stockholders. I've called some of these firms before and they seemed congenial. You can also find cases on Justia. Sometimes you can actually look at the complaints and other legal documents online if you know the case number.

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Camden- Is that unusual?

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, Also, there are at least 4 major law firms investigating EDMC on behalf of shareholders.../>

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, this is what I'm talking about. It explains that there are at least two more False Claims lawsuits.../ here's the $11 Billion case which a judge in Pittsburgh refused to throw out. The complainant worked at EDMC from 2008 to 20110 (not 2007 as you assert)...../>

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I too would love to know "Carmen's Angle", however, I don't think there is any reason to "name-call". Sadly, it shows your intellect. Sadly, this site is turning into nother more than made up gossip and false rumors.

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You literally have no idea what you are talking about. I can only assume since you are just an adjunct at a cc that you have to much time on your hands but your little to no knowledge is annoying. You think that the reason they are delaying the earnings report is because they don't know what to say about a pending lawsuit that has been pending since 2007 and is no closer to being closed one way or another than it was 7 years ago. You sir are a dunce and are jsut spouting conjecture. Were you fired by edmc and are bitter?

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Someone has suggested to me that a problem with the Earnings Report is how they will discuss the "false claims" lawsuits. Recently, EDMC's insurance company said they wouldn't cover these cases. One case alone out of Pittsburgh was for $11,000,000,000.

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"this year's 4th Quarter which was tentatively set for August 4-8" No one at EDMC set that "tentative August 4-8." That's just someone's guess.

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/ year, EDMC sent a press release on 7-15-2013 stating that its Earning Report would be 8-8-2013 (3 weeks ahead of the report). Yet there still is no press release for this year's 4th Quarter which was tentatively set for August 4-8. Maybe there is no problem...

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, sounds like management will need to make tough decisions long before 2015.

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Looks like employees have atleast until 2015 - based off of all of this. Wouldn't you all agree?

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, EDMC needs all the cash in can hold just in case they temporarily lose government funding like Corinthian Colleges. They also have debt obligations (see following quote)....."Education Management Corporation has a even bigger issue at hand though going into 2015. The company needs to make a $225 million payment on its debt while its cash holding from the third quarter is $177 million. The company’s debt-to-equity ratio in the second quarter of 2014 was 501.2%.".../>

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I'm confused...should we be expecting the worst or are things stable for a while?

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If you could read a blalnce sheet you would be able to tell tha they have cash and don't need to sell any assets currently. Your "analysis" are laughable. Your angle isn't apparent but your lack of knowledge is.

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Don't be so happy. The rising stock price may reflect a willingness to downsize with layoffs and selling of assets.

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I knew I shoulda bought 50,000 shares yesterday. If I sold them right now I'd be able to pay off my student loan! :-)

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this is almost 3x avg daily volume in the first 2 hours. There has to be some leaked info.

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200k shares in not decent volume it's basically zero. It's more than normal for this stock but is still nothing.

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Wonder if something leaked to investors about restructuring or coming to some sort of agreement with our lenders.

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Looks like something is up. the stock is up over 30% on decent volume. I guess earnings will be good.

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EDMC has many more long term debt issues than short term solvency issues. If you knew what you were talking about these would be the main issues you would be discussing instead of trying to fan the flames of panic. I guess it is just less interesting to make a post about a company that may not be around in 5-10 years than one that may be gone tomorrow.

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Stock price is an indication of future growth. Just because the stock is tanking doesn't mean the company is going to close soon. Even if it does close that could be many years down the road. That being said the stock is barely being traded at all look at the volume it's non existent, the main holders of the stock are not involved in the daily moves.

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/ thank you for your assistance. You are correct that I do not have an accounting background and that it shows. But I do have a willingness to learn. I read this article from the last Quarterly Report, about cash flows and it doesn't look good: "Cash flows provided by operating activities for the nine months ended March 31, 2014 were $172.2 million compared to $286.2 million for the nine months ended March 31, 2013. The decrease in cash flow from operations in the current quarter compared to the prior year quarter was primarily due to lower operating results...."During the quarter ended March 31, 2014, the company completed a sale-leaseback transaction with an unrelated third party for net cash proceeds of $9.6 million. The company recorded a net loss of $3.5 million in connection with the transaction during the quarter ended March 31, 2014."

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Camden- You still don't have an accounting background, but I do give you credit for being in the right place at the right time. If you want to know where the cash comes from, take a look at the statement of cash flows, which is required under GAAP. The cash is coming from operations, not investing or financing.

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yeah but with the powerful lobbying the GI loophole will be around for a while />

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As soon as 90/10 gets changed and all the GI Bill Money goes into the 90 number and forces them to have 10% of the income from the paying public, no loans or aid of any kind, that will be the end of the for profits as we know them. Should have never taken advantage of Vets and Military or used us as your cash cow. They got away with it for a few years but the jig is up!

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Delisted? Interesting. Not sure how or when that would happen to EDMC / . But isn't Corinthian still on NASDAQ at .18 a share?

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I don't know for sure but I think once your stock falls at or below 1 dollar you get kicked off the stock exchange. They are only 12 cents away from that today.

I think it's worse then they are trying to play it off as. Goldman Sacks might just decide to cut their loses. It does not seem to look like EDMC is doing anything to improve their situation in a real way. They are just busy plugging the holes as CEO after CEO is jumping off a sinking ship.

EDMC = Costa Concordia of For-Profit Education

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Anonymous26350, how much cash on hand does EDMC have on hand do you think they have right now, August 2014? Apparently they had about $450 million in cash last March, but how did they get the cash? Is this formula sustainable?

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Huh, I thought they were cash poor - They maxed out their borrowing, took their last 250 million last quarter. That goes fast...Who knows, maybe this is a good time to buy ;)

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Yeah, I don't really see how the DOE can approve student loans to a company on the skids like this.

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Creditors in this scenario do not have a lot of leverage. In a normal scenario creditors could foreclose on assets held by the company. In this case most of EDMCs assets are in the form of recievable for fiancial aid. Those recievables dissapear if a creditor takes over the school and it changes ownership. Also if you look at an actual balance sheet as opposed to the short for version that I saw you posted you will find that they appear to have plenty of cash on hand to meet obligations for quite a while. I agree that there will probably continue to be some significant restructuring but isn't like they are going to shutter the company in a couple months.

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