Second Education Management executive to step down amid investigation
Education Management Corp. said chief accounting officer Randall Killeen has resigned from the for-profit, post-secondary schools operator, which is under federal investigation for possible accounting irregularities.
According to a securities filing, Killeen, 50, agreed to remain with the Downtown company until Education Management's audit committee reviews financial results for fiscal 2013, ending June 30. The results will be released in early August.
Killeen's resignation follows a June 20 announcement that John Mazzoni, president of Education Management's Art Institutes unit, will step down on July 14. He had been president of the chain of arts schools, which includes the Art Institute of Pittsburgh and about 50 others nationwide, since 2005 and has been employed at the company for 27 years.
Education Management will begin a search for Killeen's permanent replacement immediately, said spokeswoman Jacquelyn Muller in a statement. She declined to say why he resigned.
EDMC is the nation's second-largest for-profit educator, with 110 schools in 32 states and Canada. It employs 23,000 people, including 2,400 in Pittsburgh.
The Securities and Exchange Commission has been investigating the company's accounting practices since March. The SEC subpoenaed documents and information related to the corporation's valuation of goodwill and its allowances for bad student loans, said regulatory filings. Goodwill is the price, or premium, paid for an asset above its true value.
Muller declined to comment on the probe, which is ongoing.
Killeen served as acting chief financial officer from August until April, when the job was filled permanently by Mick Beekhuizen. Killeen, who is also controller and a member of the company's executive leadership team, joined Education Management in July 2008.
A company statement said, “(Killeen's) contributions to the success of our organization have been meaningful and greatly appreciated.”
For the January-March fiscal third quarter, Education Management lost $284 million, or $2.28 a share. Revenue fell 9 percent, to $639 million, amid a decline in student enrollments.
Results included a charge of $295 million during the quarter to write down the value of goodwill on its books. In the year-ago quarter, the company lost $417 million, or $3.31 a share.
EDMC shares closed Friday at $5.62, down 5 cents.
Thomas Olson is a Trib Total Media staff writer. He can be reached at 412-320-7854 or email@example.com.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Regional airlines in tough position
- Alcoa signs $1B contract with Boeing for aluminum aircraft products
- General Motors preps cars with auto-pilot