Education Management reports quarterly loss
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For-profit school operator Education Management today reported a $13.1 million fiscal-first-quarter loss, citing lower enrollment and restructuring charges.
The Downtown company said the loss amounted to 11 cents per share and came on revenue of $609.6 million, down 11 percent from a year ago. Average enrollment at the Art Institutes, Argosy University and the company's others schools fell 12 percent while new student enrollment was off 18 percent.
The results reflect $9.1 million in pretax restructuring charges, including $7.5 million for severance paid to dismissed workers.
In the year-ago quarter, Education Management reported profit of $27 million, or 21 cents per share, on revenue of $682.1 million.
The company forecast earnings of $22 million to $24 million, or 18 to 19 cents per share, for the current quarter and profit of $54 million to $63 million, or 43 to 50 cents per share, for the fiscal year ending June 30.
In early trading this morning, Education Management shares were priced at $3.30, up 12 cents. They are off 88 percent this year.
First Published November 1, 2012 10:23 am