PITTSBURGH, April 26, 2001 (PRIMEZONE) -- Education Management Corporation (Nasdaq:EDMC) today reported its financial results for the third quarter and nine months ended March 31, 2001.
Net revenues for the third quarter of fiscal 2001 increased by 20.6% to $100.4 million, compared with $83.2 million in the third quarter of fiscal 2000. Net income for the quarter grew 33.5% to $9.5 million, or $.30 per diluted share, as compared to $7.1 million, or $.24 per diluted share, in the third quarter last year.
For the nine months ended March 31, 2001, net revenues rose 19.5% to $276.0 million, compared with $231.1 million, for the comparable nine-month period last year. Net income for the first nine months of fiscal 2001 increased 28.7% to $25.2 million, or $.82 per diluted share, as compared to $19.6 million, or $.66 per diluted share, for the same period last year.
Revenue growth in the third quarter resulted from a 13.8% 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 third quarter of fiscal 2001 was 27,260 compared to 23,956 last year.
At the start of the current spring quarter (fourth quarter of fiscal 2001), total enrollment at EDMC's schools increased 15.9% to 25,945, up from 22,390 as of the comparable point last year. At the 17 schools operated for two or more years, enrollment grew 10.1% in the spring quarter to 23,827 students, as compared to 21,647 students at the start of the same period last year. Total enrollment in bachelor's degree programs was 8,485, a 67.5% increase from the fourth quarter last year. The above figures exclude student enrollment at The Art Institute of Las Vegas, acquired on April 10, 2001.
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, "Our reported operating results and the continued solid outcomes for our graduates demonstrate our commitment to deliver a strong return for both students and investors."
Mr. Knutson added, "As previously reported, we recently closed on the acquisition of the Design Institute, since renamed The Art Institute of Las Vegas. We believe the graduates of our expanded program offerings will both benefit from and contribute to the outstanding growth in Las Vegas."
EDMC is among the largest providers of proprietary post-secondary education in the United States, based on student enrollment and revenue. EDMC's 24 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 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)
(unaudited)
Three Months Nine Months
ended March 31, ended March 31,
2001 2000 2001 2000
---- ---- ---- ----
Net revenues $100,366 $ 83,195 $276,039 $231,068
Costs and expenses:
Educational services 64,226 53,342 175,317 147,769
General and administrative 19,662 17,491 56,299 48,957
Amortization
of intangibles 469 394 1,264 1,115
-------- -------- -------- --------
84,357 71,227 232,880 197,841
-------- -------- -------- --------
Income before
interest and taxes (EBIT) 16,009 11,968 43,159 33,227
Interest expense, net 439 87 1,877
-------- -------- -------- --------
529
Income before income taxes 15,570 11,881 41,282 32,698
Provision for income taxes 6,072 4,768 16,097 13,135
-------- -------- -------- --------
Net income $ 9,498 $ 7,113 $ 25,185 $ 19,563
======== ======== ======== ========
Diluted earnings per share $ .30 $ .24 $ .82 $ .66
======== ======== ======== ========
Weighted average number
of diluted shares
outstanding (000's): 31,535 29,733 30,830 29,779
Selected Balance Sheet Data:
As of March 31,
(unaudited)
2001 2000
---- ----
Cash and cash equivalents $ 9,216 $ 715
Receivables, net 18,140 11,731
Current assets 38,780 22,041
Total assets 236,044 179,014
Current liabilities 78,657 54,950
Long-term debt (including current portion) 12,279 14,637
Shareholders' investment 145,107 108,457