Replies to post #280737 on Zeev's Turnips Patch-No Politics (ZEEV)

[marketmaven]

LAUR- All revs from acquired campuses in Chile, Costa Rica and Panama (no third country risk? bad debt expense? >nice $16.8 non-operating income swing on early debt repayment)

Non-Operating Income/Expenses. Non-operating income/expenses changed to income of $14.2 million for the 2004 fiscal quarter from an expense of $2.6 million in the 2003 fiscal quarter primarily due to income recognized in connection with the early repayment in full of a $55.0 million note receivable from Educate plus accrued interest. The note receivable was originally issued on June 30, 2003 in partial consideration for the sale of the Company's K-12 segment to Educate and was originally recorded net of a $13.4 million discount ("Educate note").

Total revenues increased by $42.0 million, or 36%, to $158.3 million for the three months ended June 30, 2004 (the "2004 fiscal quarter") from $116.2 million for the three months ended June 30, 2003 (the "2003 fiscal quarter"). This revenue increase was due to growth in schools owned in both fiscal quarters ("organic growth") of 18% in addition to acquisitions after April 1, 2003, of which the most significant was Universidad Andres Bello ("UNAB") in Chile, acquired on May 30, 2003. The other acquisitions were Universidad Interamericana ("UI") in Costa Rica and Panama, Academia de Idiomas y Estudios Profesionales ("AIEP") in Chile, and KIT eLearning ("KIT") in the Netherlands.

Campus Based revenue for the 2004 fiscal quarter increased by $35.6 million, or 41%, to $123.6 million compared to the 2003 fiscal quarter. This increase was due to 19% organic growth in addition to incremental revenue from the acquisitions of UNAB, AIEP, and UI. Enrollment increases in schools owned in both fiscal quarters added revenues of $16.8 million and incremental revenue from acquisitions added $16.9 million. The effects of tuition pricing increases were offset by the increase in working adult and Technical/Vocational programs which are priced at lower rates. For the 2004 fiscal quarter, the effects of currency translations increased revenues by $1.9 million compared to the 2003 fiscal quarter, primarily due to the strengthening of the Euro, Chilean Peso, and Swiss Franc against the U.S. Dollar, partially offset by the decline of the Mexican Peso against the U.S. Dollar. Campus Based revenue represented 78% of total revenues for the 2004 fiscal quarter and 76% for the 2003 fiscal quarter

[Zeev Hed]

Except that the stock price was halved since then.. maybe discounting a lot of that bad news.