Treatment Abuse, Behavior Modification, Thought Reform > Aspen Education Group

CRC's 10Q, March 2010 (They're FUCKED!)

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Whooter:
CRC may be considering selling off the Aspen Programs (although I haven't read this) to try to get a better "foot hold" in the weight management  division and shift some of their assets there.  

Some quick and dirty numbers:     Link

If you look at the net revenue per bed per day, Aspen Education was pulling in $288 per kid every day (Net revenue). (which is down from $304 per day last year).  While their Weight Management Division was pulling in $297 per kid per day (Net revenue).  

During 2009 they were able to treat 4,500 students.  If you look at the number of RTCs(7) and TBS’s (8), Special Learning (2) Outdoor Programs (7)compared to  their weight loss Division (13).

So it would make good business sense to shift over to the weight management which is apparently what the customers demand is going and shed off some of their RTCs and TBS’s.  I think this is "where the real money is" lol (sorry inside joke)

Residential Treatment Centers
         
Aspen Institute for Behavioral Assessment
Aspen Ranch
Island View
Pine Ridge Academy
SunHawk Adolescent Recovery Center
Turn-About Ranch
Youth Care

Therapeutic Boarding Schools
         
Academy at Swift River
Bromley Brook School
Copper Canyon Academy
New Leaf Academy of Oregon
New Leaf Academy of North Carolina
NorthStar Center
Oakley School
Stone Mountain School
   
Special Learning Needs
         
Camp Huntington
 Talisman Summer Camps
   
Outdoor Programs
         
Adirondack Leadership Expeditions
Aspen Achievement Academy
Four Circles Recovery Center
Outback Therapeutic Expeditions
Passages to Recovery Loa    UT    Leased
SUWS of the Carolinas / Phoenix Outdoor
SUWS of Idaho

Weight Management Schools and Camps
         
Wellspring Academy of the Carolinas
Wellspring Academy of California
Wellspring Adventure Camp NC
Wellspring Family Camp
Wellspring California
Wellspring Florida
Wellspring Hawaii
Wellspring New York
Wellspring Pennsylvania
Wellspring Texas
Wellspring Wisconsin
Wellspring UK
Wellspring Vancouver



...

Pile of Dead Kids:

--- Quote from: "Whooter" ---If you look at the net revenue per bed per day, Aspen Education was pulling in $288 per kid every day (net after expenses). (which is down from $304 per day last year).  While their Weight Management Division was pulling in $297 per kid per day (Net after expenses).
--- End quote ---

Absolute bullshit. That's not net after expenses. That might be revenue before expenses.. wait, it's not that either. Let's have some real numbers instead.

During 2009, CRC's "Healthy Living" division had a revenue of $117,515,000. During that same time period, they had operating expenses at the "Healthy Living" division of $153,098,000. This comes to a loss of $35,383,000. Assuming we take your bullshit number of 4500 "clients" and divide that by 365 for a per-day figure, it comes to a loss of 21 dollars per kid per day.

It's right there on page 36, Whooter. Don't pretend.

Whooter:
When looking at the 4,500 kids that they treated last year.... some may have stayed a week and others may have stayed the full year.  We cannot assume they all stayed the entire year.

The Industry has taken a down turn mostly as a result of the economy which has also hampered parents from accessing funds in the form of loans and equity in their homes to help pay for treatment.  So demand still remains high but fewer households can afford the treatment out of pocket.  The total number of facilities decreased from 29 down to 24 for Aspen Programs (in 2009) whereas the weight management division increased their facility count from 17 to 18 over the same period.  If you look at this coupled with the increased per bed per day net revenue (in the weight management division) we can see why they may be thinking of selling off the Aspen division.



...

Pile of Dead Kids:
So if the total is 4500 kids no matter how long they stayed then the per-kid per-day loss is even bigger.

Tell us how your per-bed per-day number is anything other than complete bullshit, Whooter. Cite a page number.

Pile of Dead Kids:
Also, don't try to blame the economy. CRC claims it's the economy because they can't afford to let the truth slip out: that residential treatment is a dying business even when other parts of its business are making money.


--- Quote from: "CRC's yearly numbers" ---Recovery division revenue growth is primarily attributable to increases of $6.9 million and $0.2 million in comprehensive treatment centers (“CTCs”) and outpatient facilities, respectively offset by revenue decreases in residential treatment centers of $4.6 million. Of the $27.0 million decrease in healthy living division revenue, $14.8 million is primarily attributable to residential schools, $10.1 million in outdoor programs, and $1.9 million in weight management.
--- End quote ---

Large CTC growth mixed with massive RTC loss (both adult and teenager) doesn't match up with it being the economy.

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