PITTSBURGH, Oct. 30, 2002 (PRIMEZONE) -- Education Management Corporation (Nasdaq:EDMC) today reported its financial results for the first quarter ended September 30, 2002.
Net revenues for the first quarter of fiscal 2003 increased by 39.5% to $128.1 million, compared with $91.9 million in the first quarter of fiscal 2002.
Revenue growth in the first quarter resulted from a 33.7% increase in student enrollment and an approximate 7% increase in average tuition rates. Total student enrollment at the start of the first quarter of fiscal 2003 was 32,814 as compared to 24,550 last year. Argosy's enrollment was 4,706 students in the first quarter of fiscal 2003.
Net income for the quarter grew 43.1% to $2.8 million, or $.08 per diluted share, compared to $2.0 million, or $.06 per diluted share, in the first quarter last year.
At the start of the current fall quarter (second quarter of fiscal 2003), total enrollment at EDMC's schools was 43,784, a 36.1% increase from the prior year. The Art Institutes' enrollment increased 13.4% to 36,483 from 32,180 as of the comparable period last year. At the 22 Art Institutes operated by EDMC for two or more years, enrollment grew 9.7% to 33,848 students, as compared to 30,847 students at the start of the same period last year. Total enrollment in The Art Institutes' bachelor's degree programs was 17,332, a 36.4% increase from the prior year.
Argosy's enrollment at the beginning of the current fiscal quarter was 7,301, a 24.4% increase as compared to 5,867 students enrolled at the same point last year. Argosy was acquired by EDMC on December 21, 2001. On a same-school basis, Argosy's enrollment increased 23.8% to 7,264 from 5,867 students last year.
The Company's quarterly revenues and income fluctuate with student enrollment patterns. Student enrollment has typically increased 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.
Education Management Corporation (www.edumgt.com) is among the largest providers of private post-secondary education in North America, based on student enrollment and revenue, with more than 43,000 students as of the fall 2002 at 42 primary campus locations in 26 major cities. EDMC's Art Institutes (www.artinstitutes.edu) offer master's, bachelor's, associate's and non-degree programs in the areas of design, media arts, fashion and culinary arts. EDMC's Argosy Education Group provides graduate and undergraduate degree programs in various fields including psychology, education, business, law and the health sciences. EDMC has provided career-oriented education for 40 years, and its education institutions have more than 150,000 alumni.
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
Condensed Consolidated Statements of Income
(In thousands, except earnings per share)
Three Months
ended September 30,
(unaudited)
2002 2001
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Net revenues $128,143 $ 91,874
Costs and expenses:
Educational services 94,130 67,132
General and administrative 28,160 20,724
Amortization of intangibles 965 309
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123,255 88,165
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Income before interest
and taxes (EBIT) 4,888 3,709
Interest expense, net 310 479
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Income before income taxes 4,578 3,230
Provision for income taxes 1,740 1,247
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Net income $ 2,838 $ 1,983
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Diluted earnings per share $ .08 $ .06
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Weighted average number of
diluted shares outstanding (000s): 36,578 32,134
Condensed Consolidated Balance Sheet Data (unaudited)
As of September 30
2002 2001
--------- ---------
Cash and cash equivalents $ 68,438 $ 6,974
Receivables, net 43,298 31,606
Current assets 139,188 57,855
Total assets 502,440 299,082
Current liabilities 143,629 106,587
Long-term debt
(including current portion) 3,557 29,407
Shareholders' investment 352,444 163,074