Quote Originally Posted by steve fleming View Post
Lets look at performance since 2011 when they sold their higher education business, and decided to focus on their tutoring business only, naturally if you sell a part of your business, revenues will fall. So lets look at some key metrics for the subsequent years : FY11, FY12 and FY13
　
FY11
FY12
FY 13
Revenue (m)
6.435
7.912
9.644
EBITDA (m)
-0.098
0.842
1.172
　 　 　 　
EBITDA margin (%)
-2%
11%
12%
　 　 　 　
rev growth %
 　
23%
22%
EBITDA growth %
 　 　
39%
　 　 　 　
Cash flow from ops
0.129
0.533
0.904
CF growth %
 　
313%
70%
The revenue, EBITDA and CF growth looks pretty compelling to me

This is since they have undertaken a series of initiatives to improve their online/cloud service offerings, and more importantly, focused on expanding those franchises that pay a franchise fee as a % of student fees (up to 20%), rather than a fixed fee. Post year end , they have rolled out further online offerings, plus their tie up with google

In these types of plays, you have to put a bit more effort to understanding the story.
Thanks Steve, have to be honest and say I purchased these as I have paid in NZ to another operation ( numberworks ) a reasonable sum over the past few years .So I was in the born2invest category mentioned above, however I do not think these guys have a monopoly there are a few operators in this space.I talked to a friend involved in private education , he explained that families still spent the money on the childrens education and cut back on holidays, dining out , and wine. Over the GFC they may have kept the kids in intermediate state school ( yr 7 & 8 ) instead of sending them off early to the secondary school private education. But now full on. So this is a space I am happy to be in .