Roger Lindsley

Inside Career Education Corp: Not All For-Profits Are Alike

Bottom line, Career Education (NASDAQ:CECO) is dependent on student enrollments for income. CECO's enrollments are declining faster than its stated forecasts. CECO's cash position continues to erode and regulators require a reserve in order to enroll new students. This conflict between enrollment trends and cash requirements presents a significant challenge to CECO's future in the medium to long term.

The bullet points on CECO

· Enrollments 2011 decline 18%, decline 2012 23%, expected decline 2013 25%.

· CFO O'Sullivan predicted 2% decline for 2013 in '12 Q4 and '13 Q1 conference calls. (O'Sullivan is a newly minted internal promotion without previous CFO experience.)

· CEO Steffey refuses to confirm enrollment projections for '13 in '13 Q2 conference

...
Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
WITH SEEKING ALPHA PRO, INVESTORS CAN ALSO:
  • Access Top Ideas, chosen by Seeking Alpha’s editors
  • Filter long and short ideas by market cap and sector
  • Get Coverage of over 5,000 stocks, many of which have little or no coverage elsewhere
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO." Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else." Patrick Rice, Mainstay Capital Management
100% Satisfaction Guaranteed
Money back guarantee. Seeking Alpha PRO members receive a no-questions-asked refund for membership on months paid and not used. Details