PITTSBURGH, Pa., Oct. 24, 2000 (PRIMEZONE) --- Education Management Corporation (Nasdaq:EDMC) today reported its financial results for the first quarter ended September 30, 2000.
Net revenues for the first quarter of fiscal 2001 increased by 19.2% to $72.6 million, compared with $60.9 million in the first quarter of fiscal 2000. Net income for the three months grew to $1.2 million, or $.04 per diluted share, as compared to $926,000, or $.03 per diluted share, in the first quarter of the prior year.
Revenue growth in the first quarter resulted from a 15.3% increase in student enrollment and an average increase in tuition rates of approximately 5% over last year. Total student enrollment at the Company's schools in the first quarter of fiscal 2001 was 20,991 compared to 18,208 last year.
At the start of the current fall quarter (second quarter of fiscal 2001), total enrollment at EDMC's schools climbed 14.3% to 27,999 up from 24,502 in the comparable period last year. At the 17 schools operated for two or more years, enrollment grew 9.9% in the fall quarter to 26,122 students, as compared to 23,772 students in the comparable period last year. Total enrollment in bachelor's degree programs was 8,133, a 69.2% increase from the comparable period last year.
The Company's quarterly revenues and income fluctuate with student enrollment patterns. Student enrollment typically increases in the fall (fiscal year second quarter), when the largest number of new high school graduates traditionally begin post-secondary education. The Company's quarterly costs and expenses, however, do not fluctuate as significantly as revenues.
The following is a comparison of enrollment at the Company's schools for the fall quarter of fiscal years 2001 and 2000:
Enrollment
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Oct. 00 Oct. 99
The Art Institute of Atlanta 2,215 1,909
The Art Institute of Colorado 2,090 1,976
The Art Institute of Dallas 1,560 1,544
The Art Institute of Fort Lauderdale (a) 3,146 2,761
The Art Institute of Houston 1,486 1,677
The Art Institute of Los Angeles 1,216 856
The Art Institutes International Minnesota 803 737
The Art Institute of Philadelphia 2,652 2,536
The Art Institute of Phoenix (a) 1,012 894
The Art Institute of Pittsburgh (a) 2,504 2,443
The Art Institute of Portland 667 439
The Art Institutes International at San Francisco 330 217
The Art Institute of Seattle 2,561 2,623
The Illinois Institute of Art - Chicago 1,401 1,073
The Illinois Institute of Art - Schaumburg 903 699
NCPT: The National Center for Paralegal Training 281 350
The New York Restaurant School 1,295 1,038
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Schools operated for two or more years 26,122 23,772
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The Art Institute of Charlotte 206 157
Massachusetts Communications College 910 573
The Art Institute of Los Angeles - Orange County 181 -
The Art Institute of Washington 154 -
The Art Institute of California 426 -
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Total 27,999 24,502
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a) The enrollment for The Art Institute of Fort Lauderdale, The Art Institute of Phoenix and The Art Institute of Pittsburgh includes students taking online courses in partnership with The Art Institute Online, the Company's virtual learning platform offering Internet-delivered education. For October 2000 and 1999, 166 and 54 students were enrolled in online courses, respectively.
Robert Knutson, EDMC's Chairman and Chief Executive Officer, commented, "Our solid performance in recent quarters reflects a successful strategy of broadening our market reach, by adding education program offerings and new channels for distributing these programs to more kinds of learners. EDMC is now able to serve a greater number of potential students through our increased Web presence, geographic expansion and new program development and introduction. The Center for Professional Development, The Art Institute Online and new school locations have extended our reach. The Art Institute of Los Angeles - Orange County, The Art Institute of Washington and The Art Institute of California were opened or acquired since the start of the current fiscal year."
Mr. Knutson added, "The Art Institute of Fort Lauderdale achieved an important milestone, becoming the first of our education institutions to surpass enrollment of 3,000 students. System-wide, we now have students representing all 50 states and over 100 foreign countries."
EDMC is among the largest providers of proprietary post-secondary education in the United States, based on student enrollment and revenue. EDMC's 23 education institutions offer bachelor's and associate's degree programs and non-degree programs in the areas of design, media arts, culinary arts, fashion and paralegal studies. The Company has provided career-oriented education programs for over 35 years, and its Art Institutes have more than 100,000 graduates. For more information about the Art Institutes and The Art Institute Online visits their web sites www.artinstitutes.edu and www.aionline.edu.
This press release may include information that could constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements may involve risk and uncertainties that could cause actual results to differ materially from any future results encompassed within the forward-looking statements. Factors that could cause or contribute to such differences include those matters disclosed in the Company's Securities and Exchange Commission filings.
Education Management Corporation
Summary Consolidated Statements of Income
(In thousands, except per share data)
Three Months
ended September 30,
(unaudited)
2000 1999
Net revenues $72,561 $60,850
Costs and expenses:
Educational services 53,007 44,520
General and administrative 16,686 14,305
Amortization of intangibles 357 332
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70,050 59,157
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Income before
interest and taxes (EBIT) 2,511 1,693
Interest expense, net 615 123
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Income before income taxes 1,896 1,570
Provision for income taxes 740 644
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Net income $ 1,156 $ 926
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Diluted earnings per share $ .04 $ .03
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Weighted average number of
diluted shares outstanding (000's): 30,778 30,109
Selected Balance Sheet Data:
As of September 30,
(unaudited)
2000 1999
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Cash and cash equivalents $ 5,938 $ 5,078
Receivables, net 20,928 17,401
Current assets 42,428 34,060
Total assets 220,343 168,541
Current liabilities 72,895 59,292
Long-term debt (including current portion) 31,241 15,195
Shareholders' investment 115,989 94,072