EDMC profit drops in second quarter
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Education Management Corp. financial results continue to take a hit from declining student enrollments in the for-profit college industry, with the Pittsburgh company reporting net income of $31.1 million in the second quarter compared to $63.1 million a year earlier.
EDMC reported late Wednesday that it had earned 25 cents per share in the three months ended Dec. 31, down from 49 cents per share in the same period a year earlier.
The company beat the estimate from analysts polled by Thomson Financial, who had been looking, on average, for earnings of 18 cents in the second quarter.
Net revenues dropped 11.2 percent, from $737.2 million a year earlier to $654.9 million. The company said that was mainly because of a 12.7 percent drop in average enrolled student body for the three month period compared to a year earlier.
"While the operating environment remains challenging, we continue to see several encouraging signs," said Edward H. West, president and CEO, in a prepared statement. "In addition to positive retention rates, new student demand has turned positive at several of our colleges and universities."
Education Management had about 132,000 students in its institutions across the U.S. and Canada as of October. The company's programs include the Art Institute of Pittsburgh.
First Published January 31, 2013 9:36 am