Q1 earnings were a disaster as predicted. Dig through all the nonsense in the earnings call deck and you'll find the company lost $65 million for the quarter. Far more alarming is the amount of cash Cengage is burning through. The company has $170 million on hand vs $335 million a year ago. At this rate, Cengage will be back in bankruptcy court before the merger is finalized.
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It’s the currency of virtue signaling, it’s how they justify the commercial failure of this market cannabalism. Yes it saves students money but destroys profit as a result and this is somehow justified in the minds of,these mo–nic executive leftists because the oh so precious victimized vulnerable students save 800 bucks over the course of their education... ridiculous. Meanwhile, a lot of people will be out of work soon and it will only get worse with McCenage since the same mgmt will be in play
Enron is an excellent parallel to what is happening at Cengage. Earnings calls used to be easy to follow: print sales, digital sales, business unit performance, etc. Now they focus on metrics that have absolutely nothing to do with the the bottom line. “Student savings” have increased? OK, what does that have to do with money coming in the door? MH also babbles about takeaway and increased market share. How is that possible when top line revenue is still falling? It’s all a house of cards.
The merger is probably a last ditch effort to hide more of the losses ala Enron buying companies left and right.
Pretty soon you'll see some of the saleable companies (NGL comes to mind) spun off.
These numbers make no sense. Wasn’t Michael named CEO of the year by Glassdoor!?
It's not a rumor. Wise up, protect yourself, update resume's.
This is why the rumor is floating around that there will be no severance packages. There is no money left.
$335 million was the amount of cash Cengage had on hand 4 months ago...not a year ago. That means they burned through HALF of their cash in 4 months. Cengage is officially in a complete free fall.