PITTSBURGH, Jan. 30, 2001 (PRIMEZONE) -- Education Management Corporation (Nasdaq:EDMC) today reported its financial results for the second quarter ended December 31, 2000.
Net revenues for the second quarter of fiscal 2001 increased by 18.5% to $103.1 million, compared with $87.0 million in the second quarter of fiscal 2000. Net income for the quarter grew 26.1% to $14.5 million, or $.47 per diluted share, as compared to $11.5 million, or $.39 per diluted share, in the corresponding period last year.
For the six months ended December 31, 2000, net revenues rose 18.8% to $175.7 million, compared with $147.9 million, for the applicable six-month period last year. Net income for the first six months of fiscal 2001 increased 26.0% to $15.7 million, or $0.51 per diluted share, as compared to $12.5 million, or $0.42 per diluted share, for the same period last year.
Revenue growth in the second quarter resulted from a 14.3% increase in student enrollment and an average increase in tuition rates of approximately 6% over last year. Total student enrollment at the Company's schools in the second quarter of fiscal 2001 was 27,999 compared to 24,502 last year.
At the start of the current winter quarter (third quarter of fiscal 2001), total enrollment at EDMC's schools climbed 13.8% to 27,260, up from 23,956 as of the comparable point last year. At the 17 schools operated for two or more years, enrollment grew 8.9% in the winter quarter to 25,229 students, as compared to 23,170 students at the start of the same period last year. Total enrollment in bachelor's degree programs was 8,407, a 66.5% increase from the corresponding 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.
Robert Knutson, EDMC's Chairman and Chief Executive Officer, commented, "The second quarter results validate our strategy of extending the reach of our outcomes-oriented education programs, which has provided an attractive return to both our students and shareholders." Robert Gioella, President and Chief Operating Officer added, "We are pleased with the progress made at The Art Institute of California, our recent acquisition in San Diego, and by the new Art Institutes in the Washington, D.C. area and in Orange County California, both opened this fiscal year in July."
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 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 Six Months
ended December 31, ended December 31,
2000 1999 2000 1999
---- ---- ---- ----
Net revenues $103,112 $ 87,023 $175,673 $147,873
Costs and expenses:
Educational services 58,084 49,907 111,091 94,427
General and administrative 19,951 17,161 36,637 31,466
Amortization of intangibles 438 389 795 721
-------- -------- -------- --------
78,473 67,457 148,523 126,614
-------- -------- -------- --------
Income before
interest and taxes (EBIT) 24,639 19,566 27,150 21,259
Interest expense, net 823 319 1,438 422
-------- -------- -------- --------
Income before income taxes 23,816 19,247 25,712 20,817
Provision for income taxes 9,285 7,723 10,025 8,367
-------- -------- -------- --------
Net income $ 14,531 $ 11,524 $ 15,687 $ 12,450
======== ======== ======== ========
Diluted earnings per share $ .47 $ .39 $ .51 $ .42
======== ======== ======== ========
Weighted average number
of diluted shares
outstanding (000's): 30,963 29,489 30,628 29,772
Selected Balance Sheet Data:
As of December 31,
(unaudited)
2000 1999
---- ----
Cash and cash equivalents $9,448 $30,470
Receivables, net 22,081 17,741
Current assets 45,431 58,927
Total assets 240,295 201,952
Current liabilities 80,829 64,668
Long-term debt
(including current portion) 25,161 35,900
Shareholders' investment 134,336 100,955