Tag Archives: Corinthian Colleges Inc.

Chart of the Week: Do Your Remember When APOL Was Known For Enrolling High Quality Working Adults?

February 21, 2010 – 2:49 pm

Our entry for chart of the week is sure to send a painful reminder to shareholders of APOL about Friday’s sell-off.  APOL provided initial guidance for its 2Q10 earnings which were well below consensus expectations.  The primary culprit – bad debt expense.  APOL management expects bad-debt expense as a percentage of revenue to be 6.8-7.1% [...]

By PAA Research | Posted in For-profit Education | Also tagged , , , | Comments (1)

COCO Continues to Struggle With High Cohort Default Rates – “Self Regulation” Is Not Only Likely, It’s Necessary

February 9, 2010 – 11:33 am

In an 8-K filing this morning, COCO disclosed its draft 2-year cohort default rate (CDR) data for FY08, which was released to schools yesterday.   Under the 2-year definition cohort default rates must not exceed 25% for any school for three consecutive years, or 40% in any single year, or that institution will lose access to federal financial [...]

By PAA Research | Posted in For-profit Education, Uncategorized | Also tagged , , | Comments (0)

Quick Comments on COCO’s 2Q10 Results: Higher Retention Sparks Revenue Upside, Starts Fall Short, EPS Beat Driven by Facility Leverage, Lower Cost-per-Start – When Are We Going to Get Real Bad-Debt Expense Disclosure?

February 2, 2010 – 10:35 am

COCO reported 1Q10 results this morning.  You can read the full press release here. Overall the company delivered upside to consensus on both the top and bottom-line, which should not come as a surprise given the strong results delivered by ESI and DV already this earnings season.  Revenues and EPS of $414.3 million and $0.44 beat [...]

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Details of Department of Education Negotiated Rulemaking Proposals Leak Out – Incentive Comp and Program Affordability Changes Would Have Large Implications

December 1, 2009 – 12:37 pm

The U.S. Department of Education (DOE) distributed its first round of proposals to the negotiated rulemaking panel on Monday on Program Integrity Issues in the higher education space.  The initial hearings for this year’s negotiated rulemaking sessions were held from November 2-6.  You can find more details on the initial hearings and the schedule for subsequent [...]

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WPO’s 3Q09 Results, What is an Enrollment at Kaplan? COCO’s 10-Q Filing

October 30, 2009 – 4:16 pm

We wanted to address a few issues related the for-profit education sector: WPO’s 3Q09 results, a few thoughts on COCO’s 10-Q filing and a playbook for the Negotiated Rulemaking sessions (NegReg) to be held next week.
Washington Post Company is a For-Profit Education Company That Also Owns Newspaper, Cable, Magazine and Broadcasting Businesses, Please Act Accordingly…
We continue [...]

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Apollo Group’s 4Q09 Results Send Shockwaves: Could the SEC Inquiry Relate to Accounting for Student Withdrawals? APOL Backs Away From Lower Quality Students

October 28, 2009 – 1:08 am

Readers of our research know that we have been bearish on the for-profit education sector for the past few quarters based on our concerns about growing fundamental headwinds, increasing regulatory scrutiny, and what we view as significant structural issues for a few operators in the sector. Outside of our analysis of COCO’s bad-debt expense recognition, [...]

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COCO’s Upcoming 1Q10 Results: More Bad-Debt Expense “Slight of Hand”? How Long Can Lead Cost Deflation Last?

October 27, 2009 – 6:54 pm

Corinthian Colleges, Inc. will report 1Q10 results on Thursday before the market opens.  Overall we expect the company to post inline results highlighted by 18% YOY growth in new student starts and 23% YOY growth in total enrollment.  Bad-debt expense, student start growth, lead cost inflation, and ongoing concerns about the company’s efforts to recruit [...]

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COCO Takes a Bigger Bite in California – Analyzing the Heald Capital (Heald College Acquisition)

October 20, 2009 – 4:56 pm

Corinthian Colleges, Inc. announced it has reached an agreement to acquire Heald Capital, the owner of Heald Colleges for a total consideration of $395 million.  This is the company’s largest acquisition ever based on total purchase price.  The company expects the transaction to be accretive immediately upon closing.
Heald College Profile
Heald College has eleven campuses spread [...]

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At Least For Now For the Bulls In For-Profit Education “It Just Doesn’t Matter”, Next Up Earnings and “NegReg”

October 14, 2009 – 8:05 pm

A hearing was held today by the House Committee on Education and Labor entitled: “Ensuring Student Eligibility Requirements for Federal Aid”.  You can find all of the details here.  The hearing was called as a result of a report released by the US Government Accountability Office (GAO), which attempted to compare the cohort default rate of [...]

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SF Weekly Article Harshly Criticizes COCO’s Business Practices

September 30, 2009 – 11:14 am

SF Weekly has published an article today about Corinthian Colleges and the broader for-profit education sector.  You can find the article here.  Overall the article appears to villify the for-profit higher education sector and COCO in particular for their receipt of federal stimulus dollars to help fund student tuition payments.  The article criticizes COCO’s business [...]

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