The real reason Trident University was sold

Discussion in 'General Distance Learning Discussions' started by GTFLETCH, Feb 23, 2020.

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  1. GTFLETCH

    GTFLETCH Member

    In 2017 Trident University was caught recruiting survivors with misleading information. This is very sad and disturbing.

    TUI's leadership team’s prior employment by predatory for profit schools such as Corinthian, Argosy, and Ashford, this behavior is not surprising.

    Use of misleading in formation in advertising , sales, and enrollment practices to recruit veterans was prohibited in 1974 by the Vietnam Era Veterans’ Readjustment Assistance Act. prohibition, a s codified in the Code of Federal Regulations, Sec. 3696 of Title 38 , That requires the Secretary of Veterans Affairs to: “not approve the enrollment of an eligible veteran or eligible person in a ny course offered by an institution which utilized advertising, sales, or enrollment practices of any type which are erroneous, deceptive, or misleading either by actual statement, omission, or intimation.”

    Similarly, the Principles of Excellence require schools to “ prevent abusive and deceptive recruiting practices that target the recipients of Federal military and veterans’ educational benefits.” Finally, both the protection s embedded in were incorporated into the Memorandum of Sec. 3696 and the Principles of Excellence Understanding that schools mus participate in DOD’s Tuition Assistance Program for activet sign in order to duty servicemembers.

    This is so awful that the following states have restricted TUI from operating with students from their state: GEORGIA, NEW YORK, MASSACHUSETTS, MINNESOTA AND OREGON have started protecting their citizens from TUI.

    TUI enrollment is down from 7k in 2015-16 to 4K in 2019 despite adding Associate degrees and worthless certificates.

    TUI had to sell and now will be merged with American InterContinental University.

    Link
    https://www.google.com/url?sa=t&source=web&rct=j&url=https://veteranseducationsuccess.org/s/Trident-ReportFINAL.pdf&ved=2ahUKEwjdypGo5OfnAhWFdt8KHd4-B4cQFjAAegQIBBAC&usg=AOvVaw1Hk1HrFXp2lyhoR_Yd_eBm
     
  2. GTFLETCH

    GTFLETCH Member

    When Summit partners bought TUI from Touro they immediately flipped it from a not for profit to for profit and a few years later the founding folks left and all the for profit sales guys came in and ran TUI or Trident University International into a sleezey operation who eventually prayed on survivors of dead Veterans and First Responders.

    With the recent merger of Kaplan and Purdue University. I can't help but to think what could have happened if Summit would have been more visionary and less greedy or copy cat.

    I wonder if TUI could have been an attractive for a school like Purdue who would want to increase their Online Opportunities to students.

    Oh well TUI becomes another CEC holding. Good Luck to Trident University and American InterContinental University moving forward maybe you can change your ways and more start helping more students then hurt them.

    Link
    https://www.edsurge.com/news/2017-05-16-why-donald-graham-sold-kaplan-university-to-purdue-for-1
     
  3. TEKMAN

    TEKMAN Semper Fi!

    Touro University International ---> TUI University ---> Trident University International ---> American InterContinental University ---> The future? Good thing I decided to stay away from for-profit colleges and universities.
     
    GTFLETCH and chrisjm18 like this.
  4. SteveFoerster

    SteveFoerster Resident Gadfly

  5. Rich Douglas

    Rich Douglas Well-Known Member

    Why does this feel like trolling?
     
  6. LearningAddict

    LearningAddict Well-Known Member

    If it was to avoid shady business, then you didn't really avoid it by staying away because non-profit schools engage in unsavory practices, have schools close, lie to and mislead students all the time.
     
  7. Neuhaus

    Neuhaus Well-Known Member

    Part of the problem with the whole "for-profit vs non-profit" is that it loses a lot of nuance along the way.

    The American College of Education has not done anything I'm aware of to be considered shady. They're for-profit. They're also incredibly affordable. When you don't drink from the poisoned cup of federal funds, a lot of scandals are avoided. There is just no good reason to sully a school like them or APUS because they share a corporate structure with the University of Phoenix. It's like trying to argue that all LLCs are evil because some shady companies are incorporated as LLCs. Or that all companies incorporated in states known for favorable corporate laws are all being shady.

    It also absolves shady non-profits of their shadiness. If you asked me to name two sketchy non-profit schools, SNHU would take a distant second place to Touro.

    Touro has in its portfolio one of the lowest ranked law schools that cranks out students with the highest debt load. They also have an equally low tier osteopathic medical school. This school has an itty bitty endowment and yet manages to support multiple professional schools across the country. I could get behind that mission except I haven't seen a single one of their schools that are seen as anything but the last rung you grab before you have to go overseas.

    For New Yorkers, Touro College also has a reputation for being a school that rubber stamped degrees for ultra-Orthodox Jews who had never taken non-Talmudic coursework. This is a school that was once caught just straight up selling degrees.

    But we're going to lament the fact that one of their many tendrils went "for-profit" after they sold it? Come on, people.
     
    SteveFoerster likes this.
  8. GTFLETCH

    GTFLETCH Member

    Link
    https://www.fool.com/earnings/call-transcripts/2020/02/20/career-education-corporation-ceco-q4-2019-earnings.aspx

    1. Lastly, we are focused on completing the acquisition of Trident University. We expect the transaction to close in early March once the department has added Trident's programs to AIU's authorization and are working diligently toward a smooth integration into AIU. Our focus will be on maintaining and further enhancing academic experiences for students from both universities.

    2. A quick note on the pending acquisition of Trident University. As Todd noted, we expect the acquisition to close in early March 2020, and are already diligently working toward a smooth integration for the incoming students and employees. We expect the transaction to be accretive to our 2020 earnings. Trident's operating performance continues to be strong, and as a result, we now expect to pay a cash purchase price at the high end of our previously provided range of $35 million to $44 million, along with the reimbursements of certain employee related expenses of approximately $1 million.

    3. Daniel Moore -- CJS Securities -- Analyst

    Very helpful. Maybe just talk a little bit about -- obviously, Trident, sounds like you expect it to close here imminently. And it is trending toward the higher end of the purchase price. So just any more color, detail on how they're performing, number one? And number two, beyond that acquisition update on the pipeline of additional potential M&A as we look out to 2020?

    Todd S. Nelson -- President and Chief Executive Officer

    Okay. Well, as we said, we do hope that it will be in the first part of March, we are pleased with the results thus far. And as Ashish said, based on those results it will be at the high end of what we've said the purchase price would be. Beyond that, probably can't comment anymore on it. We would hope that as things continue to progress that we would then be able to provide an update on a new outlook at our next earnings call that would include the performance of Trident as well. So at that point we'll be able to give more color than we can today.

    And then, as far as the -- I'm sorry. Then as far as the second part of your question on the pipeline. Yeah, we continue to be very active in that area. There are a lot of -- not only schools, universities, but there are also other companies that are involved in the education area that look very appealing. We want to -- as we did this, we're very strategic, very disciplined in our approach to that. But we continue to be looking for the best ways to enhance overall Perdoceo but also, provide good shareholder value on those types of acquisitions.

    4. Alexander Paris -- Barrington Research -- Analyst

    Hi, guys. Congratulations on a strong fourth quarter and 2019. I got a few questions on Trident. you -- again, just to reiterate, you expect to close that in early March. Do you have all the requisite approvals that you need? You're just waiting on the Department of Education now, is that correct?

    Todd S. Nelson -- President and Chief Executive Officer

    Yeah. As you know, there's multiple approvals you need from, whether it's the state, obviously, you're accreditor and then the department and we're just waiting on the finals with the department, and that's it.

    5. Alexander Paris -- Barrington Research -- Analyst

    I got you. Okay. And then with regard to the performance, you said performance at Trident has been good. I guess, the last data point we had was the fiscal year ended June 30, 2018 when revenues were $46 million and EBITDA was $9 million as I recall.

    Ashish R. Ghia -- Chief Financial Officer

    That is correct, Alex.

    Alexander Paris -- Barrington Research -- Analyst

    Okay. Good. And then you did say Ashish, that you expect Trident to be accretive to adjusted operating income in 2020?

    Ashish R. Ghia -- Chief Financial Officer

    Accretive to our earnings in 2020, that is correct. And as Todd mentioned, as we move forward, we will give you more updates as deem appropriate.
     
  9. GTFLETCH

    GTFLETCH Member

    Todd Nelson is a horrible CEO BTW, maybe even a crook.....

    Todd Nelson was named President and CEO of Perdoceo Education Corporation in August 2015
    CECO schools gone belly UP!

    Link
    https://www.republicreport.org/2019/report-highlights-decline-in-quality-at-troubled-career-education-corp/
    But, apparently, Nelson has taken the company’s schools — American InterContinental University (AIU) and Colorado Technical University (CTU) — even lower.

    Link
    https://www.republicreport.org/2012/romney-nelson/
    Todd Nelson resigned as chief executive of Apollo Group, parent company of the University of Phoenix, in 2006, in the wake of two controversies that ended up in court. In the first case, Apollo, the nation’s largest for-profit college business, paid $9.8 million in 2004 to settle a U.S. Department of Education complaint that it had engaged in systematic violations of rules regulating aggressive recruiting of students. The second, less well known, was a case brought by the U.S. Equal Employment Opportunity Commission (EEOC), several months after Nelson left, charging that for years the University of Phoenix had discriminated against employees who were not members of the Mormon church.
     
  10. Rich Douglas

    Rich Douglas Well-Known Member

    This matters how?
     
    SteveFoerster likes this.
  11. GTFLETCH

    GTFLETCH Member

    Press On... if it does not apply to you!!!
     
  12. Rich Douglas

    Rich Douglas Well-Known Member

    I really don't need your advice, thanks. Put a sock in it.
     
    SteveFoerster, GTFLETCH and JBjunior like this.

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