TribLIVE

| Business

 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Second Education Management executive to step down amid investigation

Email Newsletters

Click here to sign up for one of our email newsletters.

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

'American Coyotes' Series

Traveling by Jeep, boat and foot, Tribune-Review investigative reporter Carl Prine and photojournalist Justin Merriman covered nearly 2,000 miles over two months along the border with Mexico to report on coyotes — the human traffickers who bring illegal immigrants into the United States. Most are Americans working for money and/or drugs. This series reports how their operations have a major impact on life for residents and the environment along the border — and beyond.

By Thomas Olson
Friday, June 28, 2013, 12:30 p.m.
 

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 tolson@tribweb.com.

Subscribe today! Click here for our subscription offers.

 

 


Show commenting policy

Most-Read Business Headlines

  1. Stocks end 5-day slide on strong Ford, UPS earnings
  2. Consol Energy, Range Resources report 2Q losses, plan deeper cuts
  3. Ambridge’s PittMoss takes off with help from TV show, Mt. Lebanon native Cuban
  4. Leisure, hospitality lead Pittsburgh area job gains
  5. Farm livin’ is the life for former city dwellers
  6. Muni bond funds stressed
  7. U.S. Steel joins major producers in new dumping complaint
  8. Bayer sets sights beyond aspirin
  9. Investor pushing changes at Consol Energy
  10. Plummeting natural gas prices slash revenue of Marcellus shale producers
  11. Urban rentals pit old vs. young