Education Management Corporation Reports Fiscal 1999 First Quarter Results.PITTSBURGH--(BUSINESS WIRE)--November 4, 1998--Education Management Corporation (Nasdaq: EDMC EDMC Education Management Corporation EDMC Engineering Department Master Chief ) today reported financial results for the first quarter ended September September: see month. 30, 1998. Net revenues for the first quarter of fiscal 1999 increased by 16.0% to $50.1 million, compared with $43.2 million in the first quarter of fiscal 1998. Net income for the quarter rose to $425,000, or $.03 per share, as compared to $105,000, or $.01 per share, in the first quarter of last year. Revenue growth in the first quarter resulted primarily from a 13.8% increase in student enrollments at Education Management's schools and an increase in tuition For tuition fees in the United Kingdom, see . Tuition means instruction, teaching or a fee charged for educational instruction especially at a formal institution of learning or by a private tutor usually in the form of one-to-one tuition. rates which were on average approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 5% higher than in the same quarter of last year. Total student enrollment at the Company's schools in the first quarter of fiscal 1999 was 15,672 compared to 13,775 last year. The Company's quarterly revenues and income fluctuate with student enrollment patterns. Student enrollments typically increase in the fall (fiscal year second quarter) when the largest number of high school graduates traditionally begin post-secondary education. Student enrollments are typically lowest in the summer (fiscal year first quarter). The Company's quarterly costs and expenses, however, do not fluctuate as significantly as revenues. At the start of the current fall quarter (second quarter of fiscal 1999), total enrollment at Education Management's 17 schools increased 14.7% to 21,518 from 18,763 in the comparable period last year. At the 13 schools operated for two or more years, enrollments increased 10.0% in the fall quarter to 20,298 students, as compared to 18,449 students in the comparable period last year. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Knutson, Chairman and Chief Executive Officer of Education Management, said, "EDMC's strong enrollment trends reflect continued interest by students in the industries and fields served by our blend “Blending” redirects here. For alpha blending, see Alpha compositing. In linguistics, a blend is a word formed from parts of two other words. These parts are sometimes, but not always, morphemes. of education programs in the creative and visual arts visual arts npl → artes fpl plásticas visual arts npl → arts mpl plastiques visual arts npl → , and in the culinary cu·li·nar·y adj. Of or relating to a kitchen or to cookery. [Latin cul  n arts. Students come to EDMC's schools from all 50
states and from countries around the world. They benefit from our
academic orientation orientation, in architecture, the disposition of the parts of a building with reference to the points of the compass. From remote antiquity the traditional belief in the efficacy of religious ceremonials performed at dawn toward the rising sun has influenced the to the needs of employers, and from our extensive
investments in computer technology, culinary facilities and other
equipment that often distinguish The Art Institutes and our other
schools.""In recent months we have initiated or completed several real estate transactions which will provide for growth and, in some cases, will reduce our occupancy costs Occupancy costs are the whole life costs of buildings and their associated land from occupancy until disposal. These costs may be incurred on a regular or irregular basis. Occupancy costs are those costs related to occupying a space including; rent, real estate taxes, personal longer term. These include the acquisition or lease of existing or new school facilities and relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of schools to expanded quarters in eight cities." "We are also pleased to announce the recent and successful start of two new Schools of Culinary Arts, divisions of our Minneapolis Minneapolis (mĭn'ēăp`əlĭs), city (1990 pop. 368,383), seat of Hennepin co., E Minn., at the head of navigation on the Mississippi River, at St. Anthony Falls; inc. 1856. and Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. art institutes. In addition, we intend to open our 11th culinary school next spring as a division of The Art Institute of Dallas History The Art Institute of Dallas was established in 1964 as the Dallas Fashion Merchandising College. It was later renamed in 1978 to the Fashion and Art Institute of Dallas. A year later, the Institute was approved to grant an Associate of Applied Arts Degree. . With 2,850 students enrolled in culinary arts programs, EDMC is now the second largest culinary educator in the U.S. The job market continues to afford our culinary and other graduates good job opportunities." "Other new locations and new education programs are in the research and planning stage, consistent with our goal of having sustained and managed growth," concluded Mr. Knutson. October October: see month. 1998 enrollments at the eight schools which the Company has added through startup (STARTing UP) "At startup" means when the computer is first turned on or when a program is first loaded. See Startup folder. or acquisition since November November: see month. 1995 totaled 4,371, compared to initial enrollments of 1,415 at the time of their startup or acquisition. Details are set forth below:
Date Acquired
or Opened Enrollment
Initial Oct. 98
The Illinois Institute of Art at Chicago Nov. 95 157 804
The Illinois Institute of Art at
Schaumburg Nov. 95 149 507
The Art Institute of Phoenix* Jan. 96 45 834
The New York Restaurant School Aug. 96 681 1006
The Art Institutes International
Minnesota Jan. 97 98 531
The Art Institute of Los Angeles* Oct. 97 100 407
The Art Institutes International at
San Francisco Dec. 97 29 77
The Art Institutes International at
Portland Feb. 98 156 205
1,415 4,371
*Startup
Education Management Corporation is among the largest providers
of proprietary post-secondary education in the United States, based on
student enrollments and revenues. Through its operating units, The Art
Institutes, The New York Restaurant School, NCPT, NCPD, the Company
offers associate's and bachelor's degree programs and non-degree
programs in the areas of design, media arts and technology, culinary
arts, fashion and professional development. The Company has provided
career-oriented education programs for 36 years, and its schools have
graduated over 100,000 students.
This press release may include information that could constitute
forward-looking statements made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Any such
forward-looking statements may involve risks 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.
Education Management Corporation and Subsidiaries
Summary Consolidated Statements of Income (Unaudited)
(In thousands, except per share data)
Three Months
ended September 30,
1998 1997
Net revenues $ 50,079 $ 43,176
Cost and expenses:
Educational services 37,014 31,684
General and administrative 12,073 10,728
Amortization of intangibles 294 536
49,381 42,948
Income before interest
and taxes (EBIT) 698 228
Interest expense (income), net (34) 47
Income before income taxes 732 181
Provision for income taxes 307 76
Net income $ 425 $ 105
Diluted earnings per share $ 0.03 $ 0.01
Weighted average number of
shares outstanding - diluted 15,129 14,885
Selected Balance Sheet Data (Unaudited):
As of September 30,
1998 1997
Total cash and cash equivalents $ 7,125 $ 9,379
Current assets 29,796 28,101
Total assets 129,277 105,352
Current liabilities 51,392 42,541
Long-term debt
(including current portion) 2,577 6,079
Shareholders' investment 74,422 58,173
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