EDMC's $9.5M quarterly loss narrower than expected; revenue, enrollment decline
By Thomas Olson
Published: Thursday, Oct. 31, 2013, 12:01 a.m.
Education Management Corp., the nation's second-biggest operator of for-profit post-secondary schools, posted a slightly narrower-than-expected quarterly loss on Wednesday on revenue that declined with lower student enrollment.
EDMC lost $9.5 million, or 8 cents a share, for the fiscal quarter ended Sept. 30. The company had projected in August that it would lose $11 million to $12 million. The company lost $13.1 million, or 11 cents a share, the year earlier.
Results include a $1.6 million charge for restructuring. EDMC laid off several hundred administrative and support staffers across the country this month, including an unspecified number in Pittsburgh.
Revenue fell 6.2 percent to $357 million, from $380 million the year before.
The company, based Downtown, operates 110 schools in 32 states and Canada. Average total enrollment over the summer quarter fell 9.3 percent to 116,790 from 128,710 a year earlier.
Its schools, which include the Art Institute of Pittsburgh, recorded 30,770 new students in the July-September quarter, a decrease of 6.1 percent from 32,700 a year ago.
CEO Edward West said the financial results are “in line with our expectations.”
EDMC reiterated that it expects to earn $27 million to $36 million in the fiscal year ending June 30. It expects to earn $9 million to $10 million in the quarter ending Dec. 30.
EDMC released results after markets closed. Its stock closed up 84 cents at $16.52.
Thomas Olson is a staff writer for Trib Total Media.
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.
- Pandora sued by record companies
- Investment in Western Pa. startups reaches 5-year high
- Pa. unemployment rate falls to lowest since 2008; 12,000 more enter workforce
- Chocolate prices expected to soar as ingredients grow more expensive
- Squeezed by competition, Chobani to expand offerings
- Mazda recalls 109,000 older SUVs
- Emboldened by Italy move, QVC to expand into France
- Shale pioneer hires Chesapeake for drilling job
- Chrysler’s Easter eggs fun for vehicle owners
- 2014 Beetle is celebration of 65th American anniversary
- PPG shareholders vote against proposals; sales, profit see double-digit increases