Profit slips for Education Management
Pittsburgh Business Times
Education Management LLC, which operates schools such as the Art Institute of Pittsburgh, said late Wednesday that profit slipped in its second quarter.
Pittsburgh-based Education Management, taken private in a $3.4 billion buyout last March by Providence Equity Partners and Goldman Sachs Capital Partners, said net income fell to $25.4 million from $47.6 million in the second quarter of 2006.
Education Management said the decrease was primarily due to interest expense incurred during the fiscal 2007 second quarter.
Revenue in the quarter rose 14.8 percent to $358.8 million, and enrollment at its 72 schools rose 13.7 percent from a year ago to 81,800 students.
On Thursday, the company said Todd Nelson will become its new president and CEO, replacing John McKernan Jr., will become executive chairman and remain chairman of the board.
Nelson is a former president and CEO of Apollo Group, parent company of the University of Phoenix.
