Phoenix Business Journal: Grand Canyon University to look at other options to go nonprofit

Career College Central Summary:

  • In Grand Canyon Education Inc.'s (Nasdaq: LOPE) first quarter 2015 investor conference call today, CEO Brian Mueller said he's not giving up on changing the university's tax status.
  • "The work of transitioning from for-profit to not-for-profit is ongoing," Mueller told analysts today.
  • But the current model he has been trying to use isn't working. He wouldn't say much more about his strategy and said analysts would have to wait until the second quarter conference call to hear more details.
  • Either way, he said, "nothing about the strategic plan will change, whether we stay for-profit, or become not-for-profit."
  • But, he said, if the tax burden is lifted, it increases GCU's capacity to continue to invest in the university's educational infrastructure and to lower tuition.
  • He said Grand Canyon's five largest investors have told him that a 10-15 percent premium is way below what they would expect, given the performance of the university.

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