Shrinking student enrollment and falling net revenues led to a $467 million loss in the third quarter for Downtown-based Education Management Corp., nearly 80 percent more than the company lost in the same quarter of 2013.
“The current operating conditions continue to be challenging as evidenced by enrollments being down across post-secondary education,” Edward H. West, the company’s CEO, said in the press release that accompanied the earnings release.
Net revenues for the quarter ended March 31 were $595 million, 6.8 percent less than 2013 when they were $638 million.
The net loss of $467 million compared to last year's third-quarter loss of $280 million.
Net losses per share were also greater than in the same quarter last year at $3.71 a share. Last year the company lost $2.09 a share in the quarter.
Part of the problem is that overall enrollment fell by 6.9 percent across the company’s campuses when compared to the same quarter in 2013, with new student enrollment dropping 9.8 percent during that time.
The company’s stock dropped to $2.96 a share in morning trading, the lowest it has opened in the past year and $1.01 lower than it closed on Wednesday.
Ann Belser: email@example.com or 412-263-1699