“Education Management Corporation Reports Fiscal 2010 Fourth Quarter Results” plus 2 more |
- Education Management Corporation Reports Fiscal 2010 Fourth Quarter Results
- Capella University, an Accredited Online University, Names Dr. David Chapman Dean of Its Harold Abel School of Social ...
- Capella University, an Accredited Online University, to Hold Its 19th Commencement Ceremony
| Education Management Corporation Reports Fiscal 2010 Fourth Quarter Results Posted: 11 Aug 2010 03:25 PM PDT Posted on: Wednesday, 11 August 2010, 15:16 CDT PITTSBURGH, Aug. 11 /PRNewswire-FirstCall/ -- Education Management Corporation (Nasdaq: EDMC), one of the largest providers of post-secondary education in North America, today reported its financial results for the three months ended June 30, 2010. Net revenues were $650.8 million, an increase of 25.2% as compared to the fourth quarter of the prior fiscal year. Net income was $47.9 million, or $0.33 per diluted share. Todd S. Nelson, Chief Executive Officer of Education Management, commented, "Fiscal 2010 was marked by strong financial performance driven by continued student demand for our diverse array of high quality academic programs. Students recognize that we offer them a pathway to achieve their education and career aspirations, and that our entire company is dedicated to helping them succeed. This dedication is evident through the success our graduates are having finding jobs even during the current difficult economic times." Mr. Nelson continued, "Recently, the Department of Education published a proposed regulation defining the term 'gainful employment' in the Federal Register. We are reviewing the proposal and expect to provide the Department of Education with our comments. Also, we remain concerned about any potential unintended consequences that could impact a significant number of students in higher education." Financial Highlights
Student Enrollment At the start of the current July quarter, total enrollment at our schools was approximately 138,800 students, a 23.1% increase from the same time last year. Same-school enrollment (schools with enrollment for one year or more) increased 21.7% to over 137,100 students. The number of students enrolled in fully online programs increased 47.8% to approximately 38,800 students. 2010 2009 Percentage July July Change Total enrollment 138,800 112,700 23.1% Same-school enrollment(1) 137,100 112,700 21.7% Students enrolled in fully online programs 38,800 26,200 47.8% (1) Schools with enrollment for one year or moreOur quarterly revenues and income fluctuate primarily as a result of the pattern of student enrollments. The seasonality of our business has decreased over the last several years due primarily to an increased percentage of students enrolling in online programs, which generally experience less seasonal fluctuation than campus-based programs. The first quarter is typically the lowest revenue recognition quarter due to student vacations. Fiscal 2011 Guidance - 1st Quarter For the first quarter of fiscal 2011, net income, EBITDA and diluted earnings per share are expected to be between $30 million and $33 million, $112 million and $118 million, and $0.21 and $0.23, respectively. For the fiscal year 2011, capital expenditures are projected to be approximately 5.0% of net revenues, compared to 7.0% of net revenues in fiscal 2010. Calendar Year 2010 Guidance - 12 months ending December 31, 2010 Because the final language regarding gainful employment is not expected to be announced until the Fall, any potential impacts of the rule are uncertain at this time. Therefore, Education Management Corporation is only providing guidance through calendar year 2010. For calendar year 2010, net income, EBITDA and diluted earnings per share are expected to be between $251 million and $257 million, $636 million and $647 million, and $1.75 and $1.79, respectively. Excluding the expenses related to the debt repurchase, corporate restructuring and reversal of an uncertain tax position liability, net income, EBITDA and earnings per diluted share are anticipated to be between $238 million and $244 million, $642 million and $653 million and $1.66 and $1.70, respectively. The presentation of EBITDA, as well as the presentations excluding certain expenses, do not comply with U.S. generally accepted accounting principles (GAAP). For an explanation of EBITDA and EBITDA excluding expenses related to our initial public offering ("IPO"), debt repurchase, restructuring and tax reversal, and a reconciliation to net income, the most directly comparable GAAP financial measure, see the Non-GAAP Financial Measures disclosure in the financial tables section below. Conference Call and Webcast Education Management will host a conference call to discuss its fiscal 2010 fourth quarter on Thursday, August 12, 2010 at 9:00 a.m. (Eastern Time). Those wishing to participate in this call should dial 480-629-9692 approximately 10 minutes prior to the start of the call. A listen-only audio of the conference call will also be broadcast live over the internet at www.edmc.edu. A replay of the conference call will be available at www.edmc.edu for up to one year. About Education Management Education Management (www.edmc.edu), with over 136,000 students as of October 2009, is among the largest providers of post-secondary education in North America, based on student enrollment and revenue, with a total of 101 locations in 31 U.S. states and Canada. We offer academic programs to our students through campus-based and online instruction, or through a combination of both. We are committed to offering quality academic programs and continuously strive to improve the learning experience for our students. Our educational institutions offer students the opportunity to earn undergraduate and graduate degrees and certain specialized non-degree diplomas in a broad range of disciplines, including design, media arts, health sciences, psychology and behavioral sciences, culinary, fashion, business, education, legal and information technology. Cautionary Statement This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements typically contain words such as "anticipates," "believes," "estimates," "expects," "intends" or similar words indicating that future outcomes are not known with certainty and are subject to risk factors that could cause these outcomes to differ significantly from those projected. Forward-looking statements include, but are not limited to, statements related to the Company's future operating and financial performance, and include statements regarding expected enrollment, revenue, expense levels, capital expenditures and earnings. Any such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from any future results encompassed within the forward-looking statements. Some of the factors that could cause actual results to differ materially include, but are not limited to: changes in the overall U.S. or global economy, changes in enrollment or student mix, our ability to maintain eligibility to participate in Title IV programs; the outcome of the U.S. Department of Education's current rulemaking process addressing gainful employment and other issues; and other factors discussed in our filings with the Securities and Exchange Commission. Past results of Education Management are not necessarily indicative of its future results. Education Management does not undertake any obligation to update any forward-looking statements. -- Tables to Follow -- EDUCATION MANAGEMENT CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS - FISCAL FOURTH QUARTER (Dollars in millions, except earnings per share) (Unaudited) For the three months ended June 30, 2010 2009 % change ---- ---- -------- Net revenues $650.8 $519.6 25.2% Costs and expenses: Educational services (1)(2) 333.0 280.1 18.9% General and administrative (3) 175.6 137.7 27.5% Management fees paid to affiliates (4) -- 1.3 n/m Depreciation and amortization 34.5 29.3 17.7% ---- ---- ---- Total costs and expenses 543.1 448.4 21.1% ----- ----- ---- Income before interest, loss on early retirement of debt and income taxes 107.7 71.2 51.2% Interest expense, net 26.8 37.1 (28.0%) Loss on early retirement of debt (5) -- -- n/m --- --- --- Income before income taxes 80.9 34.1 137.8% Provision for income taxes (6) 33.0 12.8 158.9% ---- ---- ----- Net income $47.9 $21.3 125.1% ===== ===== ===== Diluted earnings per share $0.33 $0.18 87.2% ===== ===== ==== Weighted average number of diluted shares outstanding (000's) 143,993 119,770 For the twelve months ended June 30, 2010 2009 % change ---- ---- -------- Net revenues $2,508.5 $2,011.5 24.7% Costs and expenses: Educational services (1)(2) 1,267.1 1,067.7 18.7% General and administrative (3) 667.1 507.7 31.4% Management fees paid to affiliates (4) 32.1 5.0 n/m Depreciation and amortization 123.4 112.3 9.9% ----- ----- --- Total costs and expenses 2,089.7 1,692.7 23.5% ------- ------- ---- Income before interest, loss on early retirement of debt and income taxes 418.8 318.8 31.4% Interest expense, net 121.5 153.3 (20.7%) Loss on early retirement of debt (5) 47.2 -- n/m ---- --- --- Income before income taxes 250.1 165.5 51.1% Provision for income taxes (6) 81.6 61.1 33.6% ---- ---- ---- Net income $168.5 $104.4 61.4% ====== ====== ==== Diluted earnings per share $1.22 $0.87 40.4% ===== ===== ==== Weighted average number of diluted shares outstanding (000's) 137,667 119,770 (1) Includes bad debt expense of $27.0 million and $19.6 million in the three month periods presented and $105.6 million and $72.5 million in the full fiscal years presented. In the fiscal year ended June 30, 2010, the statement of operations above includes costs incurred in the fiscal second and third quarters of 2010 associated with the IPO, corporate restructuring and debt repurchases, as follows: (2) Previously deferred stock-based compensation costs of $2.2 million (3) Previously deferred stock-based compensation costs of $13.0 million, $1.0 million in tender offer and other costs associated with the debt repurchases and restructuring costs of $5.7 million (4) Management agreement termination fee of $29.6 million (5) Acceleration of deferred financing fees of $5.6 million and a premium of $41.6 million paid to repurchase the senior subordinated notes (6) Reversal of $17.9 million of uncertain tax position liabilities, interest and other indirect benefits related to the fiscal 2006 period EDUCATION MANAGEMENT CORPORATION AND SUBSIDIARIES SELECTED CASH FLOW STATEMENT DATA - FISCAL FOURTH QUARTER (Dollars in millions) (Unaudited) For the twelve months ended June 30, 2010 2009 % change ---- ---- -------- Net cash flows provided by operations $307.1 $293.4 4.7% Depreciation and amortization 123.4 112.3 9.9% Capital expenditures (1) (175.8) (150.7) (16.6%) (1) Represents cash paid for long-lived assets EDUCATION MANAGEMENT CORPORATION AND SUBSIDIARIES SELECTED BALANCE SHEET DATA - FISCAL FOURTH QUARTER (Dollars in millions) (Unaudited) As of June 30, 2010 2009 ---- ---- Cash and cash equivalents $373.5 $363.3 Current assets 693.0 594.3 Total assets 4,511.6 4,285.2 Revolving credit facility -- 100.0 Other current liabilities 507.2 420.4 Long-term debt (including current portion) 1,538.7 1,888.6 Shareholders' equity 2,076.7 1,485.7 EDUCATION MANAGEMENT CORPORATION AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES Reconciliation of Net Income to EBITDA (Dollars in millions) (Unaudited)Non-GAAP Financial Measures EBITDA, a measure used by management to measure operating performance, is defined as net income plus net interest expense, loss on early retirement of debt, taxes and depreciation and amortization, including amortization of intangible assets. EBITDA is not a recognized term under GAAP and does not purport to be an alternative to net income as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. Additionally, EBITDA is not intended to be a measure of free cash flow available for management's discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements. Management believes EBITDA is helpful in highlighting trends, because EBITDA excludes the results of decisions that are outside the control of operating management and can differ significantly from company to company, depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate and capital investments. We also presented net income, cash flow from operations and EBITDA after adjusting for expenses related to the IPO, debt repurchase, restructuring and tax reversal incurred in the second and third fiscal quarters which also are non-GAAP financial measures. Management believes that the presentation of these adjusted measures is useful to investors because it provides a means of evaluating the company's performance without giving effect to these expenses and tax reversal, which do not reflect the day-to-day operations of the company. Management compensates for the limitations of using non-GAAP financial measures by using them to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. Because not all companies use identical calculations, this presentation of EBITDA may not be comparable to similarly titled measures of other companies. For the three months ended June 30, 2010 2009 % change ---- ---- Net income $47.9 $21.3 125.1% Net interest expense 26.8 37.1 (28.0%) Loss on early retirement of debt -- -- n/m Income tax expense 33.0 12.8 158.9% Depreciation and amortization 34.5 29.3 17.7% ---- ---- ---- EBITDA - reported $142.2 $100.5 41.4% ====== ====== ==== Management agreement termination fee -- -- n/m Previously deferred stock- based compensation costs -- -- n/m Restructuring charge -- -- n/m Tender offer, legal and other costs -- -- n/m --- --- --- EBITDA excluding expenses related to initial public offering (IPO), debt repurchase and restructuring charge $142.2 $100.5 41.4% ====== ====== ==== For the twelve months ended June 30, 2010 2009 % change ---- ---- -------- Net income $168.5 $104.4 61.4% Net interest expense 121.5 153.3 (20.7%) Loss on early retirement of debt 47.2 -- n/m Income tax expense 81.6 61.1 33.6% Depreciation and amortization 123.4 112.3 9.9% ----- ----- --- EBITDA - reported $542.2 $431.1 25.8% ====== ====== ==== Management agreement termination fee 29.6 -- n/m Previously deferred stock- based compensation costs 15.2 -- n/m Restructuring charge 5.7 -- n/m Tender offer, legal and other costs 1.0 -- n/m --- --- --- EBITDA excluding expenses related to initial public offering (IPO), debt repurchase and restructuring charge $593.7 $431.1 37.7% ====== ====== ==== EDUCATION MANAGEMENT CORPORATION AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES Reconciliation of Cash Flow from Operations to Cash Flow from Operations Excluding Certain Expenses (Dollars in millions) (Unaudited) For the twelve months ended June 30, 2010 2009 % change ---- ---- Cash flow from operations, as reported $307.1 $293.4 4.7% Payment of management agreement termination fee 29.6 -- n/m Payment of costs associated with debt tender offers 1.0 -- n/m Cash flow from operations, excluding certain expenses $337.7 $293.4 15.1% ====== ====== ==== Reconciliation of Fiscal 2011 First Quarter Guidance of Net Income to EBITDA (Dollars in millions, except earnings per share) (Unaudited) Fiscal 2011 Guidance - 1st Quarter For the three months ending September 30, 2010 Low End High End ------- -------- Earnings per diluted share $0.21 $0.23 Net income $30 $33 Net interest expense $28 $28 Income tax expense 19 22 Depreciation and amortization 35 35 --- --- EBITDA $112 $118 ==== ==== EDUCATION MANAGEMENT CORPORATION AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES Reconciliation of Calendar Year 2010 Guidance of Net Income to EBITDA (Dollars in millions, except earnings per share) (Unaudited) Calendar Year 2010 Guidance For the twelve months ending December 31, 2010 Low End High End ------- -------- Earnings per diluted share $1.75 $1.79 Earnings per diluted share excluding expenses related to debt repurchase, corporate restructuring and reversal of uncertain tax position liability $1.66 $1.70 Net income $251 $257 Expenses related to debt repurchase and restructuring, net of tax and reversal of uncertain tax position liability (13) (13) --- --- Net income excluding expenses related to debt repurchase, restructuring & reversal of uncertain tax liability $238 $244 Net interest expense $111 $111 Income tax expense 158 162 Depreciation and amortization 135 136 --- --- EBITDA excluding expenses related to restructuring and debt repurchase $642 $653 ==== ==== FOR: Education Management Corporation COMPANY CONTACT: James Sober, CFA Vice President, Finance (412) 995-7684SOURCE Education Management Corporation Source: PR Newswire Five Filters featured article: "Peace Envoy" Blair Gets an Easy Ride in the Independent. 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| Posted: 11 Aug 2010 09:08 AM PDT MINNEAPOLIS--(BUSINESS WIRE)--Capella University, an accredited online university* that has built its reputation by providing high quality online degree programs for working adults, has announced that David Chapman, PsyD, has been named dean of its Harold Abel School of Social and Behavioral Sciences. As dean, he will act as chief academic officer of the school, which offers 12 graduate-level online degree programs in counseling, psychology, and social work. More than 38,000 students are pursuing an online degree at Capella University (http://www.capella.edu), with 31 percent enrolled in Capella's doctoral degree programs, and 47 percent enrolled in Capella's master's degree programs.
Dr. Chapman has been a member of Capella's faculty since 1999 and has served in leadership roles at Capella as the interim faculty chair of the Industrial/Organizational Psychology programs, and most recently, as interim faculty chair of the General Psychology programs. His leadership and academic experience also includes 15 years as the owner of a successful industrial/organizational psychology consulting business, and 13 years with the University of St. Thomas in various academic leadership positions, including associate dean. Dr. Chapman received his Doctor of Psychology in Counseling Psychology from the University of St. Thomas, where he also earned his Master of Arts in Counseling Psychology. He also holds a Master of Arts in Theology from Luther Theological Seminary and a Bachelor of Arts in Psychology from the University of Missouri. "Dr. Chapman has demonstrated excellent leadership capabilities throughout his years at Capella, and we're very pleased he will be taking on the role of dean," said Deborah Bushway, PhD, Capella's vice president of academic affairs and provost. "His strong scholar-practitioner background is a great fit for our programs, which offer working adults a high-quality academic experience as well as the knowledge and competencies needed to excel professionally." About Capella University Capella University is an accredited online university* that has built its reputation by providing quality online degree programs for working adults. Nearly 80 percent of Capella students are currently enrolled in master's or doctoral online degree programs in the fields of business, counseling, education, health administration, human services, information technology, nursing, psychology, public administration, public health, public safety, and social work. Capella also offers bachelor's degree programs in business, information technology, nursing, psychology, public administration, and public safety. Within those areas, Capella currently offers 137 graduate and undergraduate specializations and 16 certificate programs. More than 38,000 learners were enrolled as of June 30, 2010, from all 50 states and 52 other countries. Capella is committed to providing high-caliber academic excellence and pursuing balanced business growth. Founded in 1993, Capella University is a wholly owned subsidiary of Capella Education Company, headquartered in Minneapolis. For more information, please visit http://www.capella.edu or call 1-888-CAPELLA (227-3552). Visit the Capella Facebook page at http://www.facebook.com/CapellaUniversity. Follow Capella on Twitter at http://twitter.com/CapellaU. * Capella University is accredited by The Higher Learning Commission and is a member of the North Central Association of Colleges and Schools (NCA), www.ncahlc.org. Capella University, Capella Tower, 225 South Sixth Street, Ninth Floor, Minneapolis, MN 55402, 1.888.CAPELLA (227.3552), www.capella.edu. Learn more about earning an online degree: online education (http://www.capella.edu/online_education.aspx) online degree (http://www.capella.edu) accredited online university (http://www.capella.edu/about_capella/accreditation.aspx) online college (http://www.capella.edu/online_college_degree_programs.aspx) Five Filters featured article: "Peace Envoy" Blair Gets an Easy Ride in the Independent. Available tools: PDF Newspaper, Full Text RSS, Term Extraction. |
| Capella University, an Accredited Online University, to Hold Its 19th Commencement Ceremony Posted: 11 Aug 2010 08:40 AM PDT Press Release Source: Capella University On Wednesday August 11, 2010, 11:40 am EDT MINNEAPOLIS--(BUSINESS WIRE)--Capella University, an accredited online university* that has built its reputation by providing high quality online degree programs for working adults, will host its 19th commencement ceremony for the more than 800 Capella students who are expected to participate in the event at the Minnesota Orchestra Hall in Minneapolis. More than 38,000 students are pursuing an online degree at Capella University (http://www.capella.edu), with 31 percent enrolled in Capella's doctoral degree programs, and 47 percent enrolled in Capella's master's degree programs. Addressing the keynote speech will be Salome Thomas-EL, a former teacher and principal, national education expert, and author of the best-selling book "I Choose to Stay." Thomas-EL has more than 20 years of experience motivating children and adults to embrace education and hard work by stressing the importance of leadership, parenting, mentoring, and service to others. "Reaching graduation is a significant milestone which required our students to exemplify drive, determination and dedication to academic excellence," said Michael Offerman, interim president of Capella University. "On behalf of all of us from Capella University, we would like to extend our deepest congratulations to all of this weekend's graduates." Capella will provide live and archived webcasts of the ceremony for graduates, family, and friends who are unable to attend in person. Capella University holds commencement ceremonies twice each year: in Minneapolis each August, and in another major U.S. city each February or March. About Capella University Become a fan of the Capella Facebook page at http://www.facebook.com/CapellaUniversity. Follow Capella on Twitter at http://twitter.com/CapellaU. * Capella University is accredited by The Higher Learning Commission and is a member of the North Central Association of Colleges and Schools (NCA), www.ncahlc.org. Learn more about earning an online degree: Five Filters featured article: "Peace Envoy" Blair Gets an Easy Ride in the Independent. Available tools: PDF Newspaper, Full Text RSS, Term Extraction. |
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