PITTSBURGH, Pa., Oct. 25, 2001 (PRIMEZONE) -- Education Management Corporation (Nasdaq:EDMC) today reported its financial results for the first quarter ended September 30, 2001.
Net revenues for the first quarter of fiscal 2002 increased by 26.6% to $91.9 million, compared with $72.6 million in the first quarter of fiscal 2001. Net income for the quarter grew 71.5% to $2.0 million, or $.06 per diluted share, as compared to $1.2 million, or $.04 per diluted share, in the first quarter last year.
Revenue growth in the first quarter resulted from a 17.8% increase in student enrollment and an increase in average tuition rates of approximately 7% over last year. Total student enrollment at the Company's schools in the first quarter of fiscal 2002 was 24,735 compared to 20,991 last year.
At the start of the current second quarter, total enrollment at EDMC's schools increased 15.6% to 32,375, up from 27,999 as of the comparable point last year. At the 19 schools operated by EDMC for two or more years, enrollment grew 7.5% in the quarter to 29,284 students, as compared to 27,237 students at the start of the same period last year. Total enrollment in bachelor's degree programs was 12,704, a 56.2% increase from the prior 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.
Robert Knutson, EDMC's Chairman and Chief Executive Officer, commented, "In addition to our strong financial performance in the first quarter, we are pleased to have reported the acquisition of International Fine Arts College, the merger agreement with Argosy Education Group and our agreement to acquire certain assets of ITI Education Corporation. These strategic transactions will greatly broaden our programmatic and geographic reach in higher education."
EDMC is among the largest providers of proprietary post-secondary education in the United States, based on student enrollment and revenue. EDMC's 25 current education institutions offer bachelor's and associate's degree programs and non-degree programs in the areas of design, media arts, culinary arts and fashion. The Company has provided career-oriented education programs for over 35 years, and its Art Institutes have more than 125,000 graduates. For more information about The Art Institutes and The Art Institute Online, visit their web sites at 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. Past results of EDMC are not necessarily indicative of its future results. EDMC does not undertake any obligation to update any forward-looking statements.
Education Management Corporation
Summary Consolidated Statements of Income
(In thousands, except earnings per share)
Three Months
ended September 30,
(unaudited)
2001 2000
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Net revenues $ 91,874 $ 72,561
Costs and expenses:
Educational services 67,132 52,996
General and administrative 20,724 16,686
Amortization of intangibles
309 368
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88,165 70,050
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Income before interest
and taxes (EBIT) 3,709 2,511
Interest expense, net
479 615
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Income before income taxes 3,230 1,896
Provision for income taxes
1,247 740
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Net income $ 1,983 $ 1,156
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Diluted earnings per share $ .06 $ .04
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Weighted average number of
diluted shares outstanding (000's): 32,134 30,778
Selected Balance Sheet Data:
As of September 30
2001 2000
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Cash and cash equivalents $ 6,974 $ 5,938
Receivables, net 23,948 20,928
Current assets 50,197 42,428
Total assets 289,189 220,343
Current liabilities 96,694 72,895
Long-term debt (including
Current portion) 29,407 31,241
Shareholders' investment 163,074 115,989