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.
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