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Aspen Education Group / CRC's 10Q, Sept 2010 (They're about to give up on Aspen)
« on: November 20, 2010, 06:00:17 PM »
http://ir.10kwizard.com/filing.php?ipag ... ource=1321
Same story as the last three months. Their recovery division tries to pull them out (+$28M), but "healthy living" (-$9M) and corporate expenses (-$8M) drag them back down, and coupled with their 604 million dollars in long-term debt and its brutal interest (-$11M), the company is barely treading water.
Aspen is addressed by name in this 10Q, and they're damned:
This is the sound of a business considering dropping them like a lead brick.
Same story as the last three months. Their recovery division tries to pull them out (+$28M), but "healthy living" (-$9M) and corporate expenses (-$8M) drag them back down, and coupled with their 604 million dollars in long-term debt and its brutal interest (-$11M), the company is barely treading water.
Aspen is addressed by name in this 10Q, and they're damned:
Quote
The operations and enrollment of the Aspen programs within our healthy living division are highest in the summer months. Additionally, the Aspen programs have limited leading indicators regarding performance. As a result, we have more information in late summer and early fall around Aspen’s performance, which came in below the performance levels expected in July and August 2010. At the end of the third quarter of 2010, we reviewed actual results for graduation, admissions, and average length of stay in the Aspen programs relative to its prior forecast and fiscal year budget. In response to negative results in these areas, we further lowered our view of forecasted future cash flows for the Aspen programs within our healthy living division. As a result, for the three months ended September 30, 2010, we recognized non-cash charges related to goodwill impairment and asset impairment for Aspen in the amount of $9.1 million and $2.5 million, respectively. For the nine months ended September 30, 2010, we had recognized non-cash charges related to goodwill and asset impairment of $52.7 million and $20.5 million, respectively, for the healthy living division including Aspen.
This is the sound of a business considering dropping them like a lead brick.