Key Developments: Education Management Corp (EDMC.O)
7.36USD
21 May 2013
$-0.25 (-3.29%)
$7.37
$7.59
$7.78
$7.19
97,797
98,375
$9.72
$2.84
Latest Key Developments (Source: Significant Developments)
Education Management Corp Appoints Mick J. Beekhuizen As Chief Financial Officer
Education Management Corp announced the appointment of two new senior executives. Mick J. Beekhuizen will join the Company as Executive Vice President and Chief Financial Officer. Mr. Beekhuizen will report directly to Edward H. West, President and Chief Executive Officer. Full Article
Education Management Corp Issues Q3 2013 Earnings Guidance; EPS And EBITDA Guidance Above Analysts' Estimates; Lowers FY 2013 Earnings Guidance
Education Management Corp. announced that for the third quarter of 2013, it expects earning per diluted share (EPS) of $0.20-$0.22, net income of $25-$27 million and EBITDA of $113-$117 million. For fiscal 2013, it expects earnings per diluted share in range of $0.32-0.37, net income of $40-$47 million and EBITDA of $365-$375 million. According to I/B/E/S Estimates, analysts are expecting the Company to report EPS of $0.19, net income of $27 million and EBITDA of $111 million for the third quarter of 2013; EPS of $0.40, net income of $54 million and EBITDA of $364 million for fiscal 2013. Full Article
Education Management Corp Issues Q2 2013 Guidance Below Analysts' Estimates; Lowers FY 2013 Guidance
Education Management Corp. announced that for the second quarter of 2013, it expects earning per diluted share of $0.18-$0.19, net income of $22-$24 million and EBITDA of $107-$110 million. For fiscal 2013, it expects earnings per diluted share in range of $0.43-0.50, net income of $54-$63 million and EBITDA of $385-$400 million. According to I/B/E/S Estimates, analysts are expecting the Company to report EPS of $0.27, net income of $34 million and EBITDA of $128 million for second quarter of 2013; EPS of $0.48, net income of $56 million and EBITDA of $395 million for fiscal 2013. Full Article
Harwood Feffer LLP Announces Investigation of Education Management Corp
Harwood Feffer LLP announced that it is investigating potential claims against the Board of Directors of Education Management Corp. (EDMC or the Company) concerning whether the board has breached its fiduciary duties to shareholders. The Company is currently facing costly public and legal scrutiny, including a qui tam action filed under the False Claims Act related to improper bonus compensation for recruiting staff, a subpoena from the Office of Inspector General of the U.S. Department of Education, a lawsuit related to deceptive claims made to students in Texas regarding accreditation issues, and investigations by the attorneys general of Kentucky, Florida, New York, and Massachusetts. Access to federal Title IV funds is conditioned on an institution maintaining valid accreditation. Any one of the foregoing investigations and lawsuits could result in one or more of EDMC's schools losing accreditation. EDMC would be forced to close any school that lost its accreditation due to the Company's 90% reliance on Title IV funds. The Company has incurred, and will continue to incur, substantial costs related to responding to the subpoenas and investigations, and defending itself from the various lawsuits it faces. Moreover, the Company's reputation as an educator has been seriously harmed, as evidenced by a year-over-year enrollment decrease of nearly 10% from 2011 to 2012. Full Article
Education Management Corp. Issues Q1, FY 2013 Earnings Guidance
Education Management Corp. announced that for the first quarter of 2013, it expects loss per diluted share of $(0.08), net loss of $(10) million and EBITDA $55 million. For fiscal 2013, it expects earnings per diluted share of $0.54, net income of $68 million and EBITDA $400 million. Full Article
Education Management Corp. Announces New Chairman And New Chief Executive Officer
Education Management Corp. announced that John R. McKernan, Jr., will step down as Chairman of its Board of Directors, effective August 15, 2012. He will remain a member of the Company's Board of Directors. The Board of Directors has named Todd S. Nelson, currently Chief Executive Officer, to succeed Mr. McKernan as Chairman of the Board of Directors, while Edward H. West, currently President and Chief Financial Officer, will become the Company's new Chief Executive Officer. Full Article
Shuman Law Firm Investigates Education Management Corp.
The Shuman Law Firm announced that it is investigating potential claims against certain officers and directors of Education Management Corp. (Education Management or the Company). On August 3, 2010 the U.S. General Accounting Office (GAO) issued a report which concluded that several for-profit educational institutions had engaged in an illegal and fraudulent course of action designed to recruit students and over-charge the federal government for the cost of such education. The GAO report also cited possible violations of state and federal laws relating to program accreditation and student employment statistics. While Education Management was not specifically named in the GAO report, following these disclosures, shares of the Company fell approximately 18% as this news reached the market. A recently unsealed qui tam action filed by two former employees, and in which the Department of Justice and twelve states have intervened, makes similar claims including that the Company illegally paid recruiters billions of dollars in incentives to sign students up. If they prove their case, Education Management could be forced to repay three times the damages, plus penalties. Full Article
Education Management Corp. Issues Q4, FY 2012 Guidance
Education Management Corp. announced that for the fourth quarter of 2012, net income, EBITDA and diluted earnings per share are expected to be between $8 million and $11 million, $85 million and $90 million, and $0.06 and $0.08, respectively. For fiscal 2012, it expects loss and diluted loss per share are expected to be between $316 million and $319 million and $2.48 and $2.50, respectively. Excluding the expenses described above, net income, EBITDA and diluted earnings per share are expected to be between $143 million and $146 million, $505 million and $510 million, and $1.12 and $1.14, respectively. Full Article
Education Management Corp. Issues Q3 2012 Earnings Guidance Below Analysts' Estimates; Lowers FY 2012 Earnings Guidance
Education Management Corp. announced that for the third quarter of 2012, it expects net income, EBITDA and diluted earnings per share to be between $34-$36 million, $123-$127 million and $0.27-$0.28, respectively. For fiscal 2012 it expects net income and diluted earnings per share to be between $139-$144 million and $1.08-$1.12, respectively. Excluding the expenses incurred during the first quarter of fiscal 2012 related to restructuring and a lease termination, net income, EBITDA and diluted earnings per share are expected to be between $143-$148 million, $500-$510 million and $1.11-$1.15 respectively. According to I/B/E/S Estimates, analysts are expecting the Company to report EBITDA of $159 million, net income of $55 million and EPS of $0.42 for the third quarter of 2012; net income of $175 million and EPS of $1.34 for fiscal 2012. Full Article
Education Management Corp. Announces Extension Of Stock Repurchase Program
Education Management Corp. announced that its Board of Directors has increased the size of its stock repurchase program from $325.0 million to $375.0 million and extended the term of the program to December 31, 2012. The Company announced the stock repurchase program on June 11, 2010 and has repurchased 16.6 million shares at a cost of $291.0 million through December 13, 2011. Under the terms of the stock repurchase program, the Company may repurchase its common stock from time to time, in amounts, at prices and at such times as it deems appropriate, all subject to market conditions and other considerations. Full Article
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