Education Management Corp. reported a loss of $1.19 billion, $9.51 a share, in its quarter as the company registered $1.25 billion in charges including a $1.12 billion impairment charge related to The Art Institutes division.
That compared to profit of $34.8 million, 26 cents a share, in the fourth quarter a year ago. An impairment charge is taken when a company's assets are worth less now than they were previously. Revenues declined to $639.2 million from $695.4 million a year ago. The for-profit education giant, which is based in downtown Pittsburgh, said revenues declined due to a 9 percent drop in enrollment.
For the year ended June 30, Education Management (Nasdaq: EDMC) lost $1.52 billion, $11.97 a share, on revenue of $2.76 billion. That compared to net income of $229.5 million, $1.66 a share, on revenues of $2.89 billion the prior year. Declines in revenue also were due to the 5.7 percent drop in enrollment from the prior year.
Reuters said EDMC, whose shares have fallen from $30 a share earlier in the year to $3.99 on Wednesday on the Nasdaq, expected it would lose 8 cents a share in the first quarter.