Tag Archives: Washington Post Company

WPO 10-K Highlights – Program Review at Kaplan University, Kaplan Resolves 25% CDR Issue at a Few Schools

March 4, 2010 – 1:30 pm

We recently discussed WPO’s 4Q09 results, which have prompted a 5.8% rally in shares.  In our review, we highlighted how we were eagerly anticipating the release of WPO’s 10-K, which we hoped would include more extensive disclosure on regulatory compliance and operating metrics at Kaplan Higher Education, the company’s largest division.  WPO recently issued its [...]

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WPO 4Q09: Margin Improvement at Newspaper and Broadcasting Divisions Overshadow Sequential Decline in Margins at Kaplan Higher Education

February 24, 2010 – 1:20 pm

WPO reported 4Q09 results this morning. You can read all of the details here.  The company’s revenue and EPS of $1.238 billion and $8.71 beat the lone set of analysts estimates out there of $1.16 billion and $3.21.  In the table below we outline how each of the company’s operating divisions performed relative to our [...]

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The Dept. of Education Fires A Shot Across the Bow of the Higher Learning Commission (HLC)

December 17, 2009 – 4:33 pm

The education stocks are trading off today following the release of a memorandum from the Department of Education’s Office of Inspector General (OIG).   You can find the memorandum here.  Effectively the OIG has asked the Department of Education to review the status of the HLC and potentially “limit, suspend, or terminate HLC’s recognition by the [...]

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Unofficial FY07 3-Year Cohort Default Rates Come In-line With Expectations, Now Comes the Hard Part for COCO and WPO

December 14, 2009 – 6:51 pm

The Department of Education released unofficial 3-year cohort default rate data this morning.  You can find the DOE’s press release here, which also contains a link to an excel file with school by school 3-year cohort default rate data.  Overall, the data was more or less inline with our expectations.  The addition of an extra [...]

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Preparing for the Release of Unofficial 3-Year Cohort Default Rate Data – Follow the Script, At the Very Least Self-Regulation Is on Its Way

December 9, 2009 – 12:37 pm

We have expressed our concerns in the past about the impact the transition from a 2-year to a 3-year cohort default rate calculation could have on the for-profit education sector.  As a reminder, as part of the Higher Education Opportunity Act of 2008 the calculation of the cohort default rate was expanded from 2-years to [...]

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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 Alters Revenue Recognition Policy for Kaplan Higher Education, More Enrollment Reconcilliation

November 8, 2009 – 6:58 pm

In a recent letter to Warren Buffet, we voiced our concerns about what seem to be growing regulatory issues at Washington Post Company’s most important division, Kaplan Higher Education.  From an outsiders perspective the magnitude and rate of increase in 2-year cohort default rates at many of the company’s schools is alarming in the context of [...]

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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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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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