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

CRC's 10Q, Sept 2010 (They're about to give up on Aspen)

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Dysfunction Junction:

--- Quote from: "Pile of Dead Kids" ---
--- Quote from: "Ursus" ---Incidentally, I'm not sure where you get the idea that the outdoor programs are any kind of significant money maker from the material you quote above (in green). They're barely exceeding the break even point. It's the fat farms that are pulling this entire train:

SUMMARY:
+ $1.9 M — weight management
+ $0.6 M — outdoor programs
- $1.0 M — residential facilities
--- End quote ---

Ursus, bullshit from Whooter is expected, but it's important to remember how deeply it is bullshit. He cited the wrong patient-day revenue (before expenses), and those other numbers are the change in revenue before expenses compared to the same 3 months in 2009. And the expenses of the entire "healthy living" division went up $2.5 million during those three months. But CRC isn't kind enough to break down its expense numbers for us, so we can't reach in and say how much Aspen is making- or, more likely, losing- versus the other parts of that division. CRC's descriptions of Aspen specifically might give us some clues there, though... :D

I also made a mistake because I didn't notice that CRC was trying to count goodwill (bullshit) as real money again, which it's been shedding. So the "healthy living" division, in its entirety, made somewhat under $3M in operating income in the last three months (CRC has them $4M in pure EBITDA) and was a little above breaking even counting their asset impairment (and most of those assets are also made-up bullshit). That's before taxes, corporate-headquarters expenses, and everything else.

Also remember that the summer is the busy season for parents trying to get rid of their children for three (or more) months. CRC was expecting a lot more in revenue.

The EBITDA numbers are from this: http://ir.10kwizard.com/filing.php?ipag ... ource=1321 It's damning. During the first nine months of 2010, the "Recovery" division made them $91M in raw EBITDA. "Healthy Living"? Not even $3M. This is right after the busy season, and it's about $4M less than the first nine months of 2009. And this is with the (presumably money-making) fat camps.

Of course they're trying to sell Aspen off, but nobody wants it. CRC bought this turkey at what turned out to be a vastly inflated price, borrowing money they're struggling to pay back, making it more and more attractive to potential buyers by dropping the intangible "assets". Still no deal.
--- End quote ---
:tup:

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