Hillcrest had $2.1 MM in revenue and $2.1 MM in expenses with $3.4 MM in debt
JA's problem is where are their future students going to come from. They seem to be healthy financially for the moment. Prep has the lowest cash flow of the group but they have the lowest debt as well.
There is a big difference in those two - location. JA is at least near some money neighborhoods and close to all the important shlt in Jackson. Hillcrest is way out there in a sprawl area that still, to this day, experienced the fastest downturn I've ever seen.
I have to think, HAVE to....that investors will eventually start putting money into downtown/Fondren/Belhaven and surrounding areas, and JA may be the benefactor. But it is a little farther north than all the cool stuff, so there's that, who knows. Maybe Prep is the actual true benefactor, I mean when you look at location and ease of access. And at some point, I also have to think the reservoir real estate will eventually be valuable again. It's stunning the bones that the Jackson area has will seemingly no willpower to take advantage and promote them.
So after typing this, personally, I've kinda changed my mind - I don't think Prep is going anywhere, unless Jackson completely folds, and it won't. JA seems to be in more danger. But Hillcrest ain't NEVER coming back, hahaha.
Yup. I've known several people to move from that area out of a concern of where crime is going. Outside of people living in that area and some diehard alumni, who is choosing JA? Who is wanting to drive past Prep to go further into Jackson to take their kid to school, and out of those willing to do that, how many are choosing JA over St. Andrews? If they're coming from the Madison side, they have to pass MRA and depending on where they live, possibly pass up going to MC or Germantown (and again, even if those schools aren't good enough for some reason, why choose JA over Saint Andrews?).
These are good points. And now that I think about it, NEJ saw a stunning downtown as well, as least the north side.
Cliff's notes: I can't see Jackson sucking forever, so one of Prep and JA will likely survive, and probably Prep. Maybe they'll work out a merger.