Vanishing Money at EDMC?

This comment comes from Yahoo Finance. Can someone at EDMC (or Price Waterhouse Coopers)explain?..........."A story from point of an Engineer about EDMC

11,000 staff, average $90,000 per person per year, $1 billion per year.

110 campus, assuming $2 Million per campus per year, $0.22 billion per year.

Annual revenue is $2.2 Billion.

In summary, $1 billion surplus per year. But the the company is in debt now. Can someone tell me where are those missing $5 billion during the past 5 years?

It is ridiculous to see those law suits against EDMC. What do they really want, to share the debt? I only see a good reason here to fear the share holders out? It is more critical to find out the vanished money, get the real criminal punished. But, are there any police doing this work, or are they too busy writing speeding ticket?

Goldman finished the game, it is KKR's turn. Before the hand over, diluting the share to take away all the money raised thru IPO. I have no confidence in stock market by this shocking story. How to describe it or them? If it is called sin by God, how heavy is the sinful mountain above the Wall Street? How will God end it? If God won't, shall we? Can someone tell me how wrong I am?"

Comment! It's anonymous!

4 replies (most recent on top)

@Compliance Phil, yes, I am ignorant of balance sheets, but there does seem to be a lack of transparency on how much EDMC is spending in particular areas (e.g. targeted marketing and advertising (e.g. AdSense), paying for lead generators, legal fees, political lobbying). The Harkin Report and OpenSecrets, it seems, has provided much more important financial information.

Compliance Phil makes a good point, Cap Ex expenditures to open a school, renovate or furnish with FF & E ( Furniture , Fixtures and Equipment) are considerable and along the way EDMC has invested heavily in technology to improve the student experience (but that's kind of like lipstick on a pig, now isn't it?)

Maybe I gave you a little more credit than you deserve Camden Kid. There are more expenses to running a business than just payroll. Leases, mortgages, utilities, insurance, materials, MARKETING, interest. I'm sure you of all people have read the numerous articles that continually bash EDMC for spending a ridiculous amount on marketing compared to educational expenses. Additionally I haven't checked in a while as there have been a lot of people let go but I thought the number of employees was a bit closer to 20k? Maybe I am misunderstanding your take on this person's comments but maybe you can share my post with the mysterious 'engineer' for me. I think anyone with a South University MBA could answer this question though...

Correction: Ernst & Young LLP

Thread regarding Education Management Corporation layoffs

Vanishing Money at EDMC?

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