just to be clear the numbers are bad and yes at these levels the business was heading for disaster. However I'm encouraged that the CEO and board is forthcoming with the real situation which in itself deserves huge kudos. None of that previous "70% of our centers are at approximately 70% occupancy" BS. Cheery picking data to suit a narrative and hiding the whole truth which was the norm...
In my chats with the board members I had urged them to build market confidence back through transparency and clarity - which they have done really well through todays announcement. The fact that no massive sell off happened is at least partial proof that there is some improvement in investor sentiment.
I'm much more inclined to believe the forward plan of a CEO who is willing to tell as it is rather than wordsmith the bad bits. well run childcare centers will never have problem with occupancy - still long way to go but if they are doing the basics right - the reward will come.
The best marketing is word of mouth by satisfied parents not by a freaking marketing department and glossy annual report with gooblidook in it.
And this time we have a CEO who actually cares enough to visit the childcare centers he is running - big difference. (I actually called some of these centers and asked them directly)
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