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Education Management Corporation Business Information, Profile, and History

300 6th Avenue
Pittsburgh, Pennsylvania 15222-2598
U.S.A.

History of Education Management Corporation

The Education Management Corporation (EDMC) owns and operates 22 post-secondary schools nationwide, providing career education to more than 24,000 students from throughout the United States and over 80 foreign countries. The company offers certificates, Associate degrees, or Bachelor's degrees in: culinary arts/management; graphic design; industrial design technology; photography; interior design; computer animation; fashion design/marketing; multimedia and web site design; online media & marketing; interactive multimedia programming; game art & design; and video/audio production. At the National Center for Paralegal Studies in Atlanta, EDMC offers an Associate of Arts degree in legal studies, as well as certificate programs for administrative assistants to the legal profession. EDMC's schools are located in major metropolitan areas in 13 states and Washington D.C. EDMC counts over 100,000 alumni.

1960s Origins

EDMC was founded in 1962, offering professional development education in Pennsylvania. The company's scope and focus then shifted with the 1970 acquisition of the Art Institute of Pittsburgh, founded in 1921. As a post-secondary art school under the parentage of EDMC, the Art Institute of Pittsburgh offered certificate programs in graphic design, interior design, and photography.

Robert B. Knutson joined EDMC in 1969 and became president of the company in 1971. Knutson would oversee a period of expansion through acquisition. Over the next 15 years, EDMC would add to its higher education holdings with eight acquisitions, seven of which would involve commercial arts schools in Denver, Ft. Lauderdale, Atlanta, Philadelphia, Dallas, Houston, and Seattle. The company grouped these, in a national marketing campaign, as 'The Art Institutes.' The eighth acquisition, of the National Center for Paralegal Training, offered certificates in legal studies. Another driving force behind EDMC's expansion was Knutson's wife, Miryam L. Drucker, who joined the company in 1984 as president of The Art Institute of Dallas, becoming president of The Art Institute of Fort Lauderdale before heading up the Art Institutes umbrella organization in 1988. She and Knutson were married during this time.

Under Knutson, who became EDMC's chairman and CEO in 1986, and Miryam Knutson, who in 1989 was named president and chief operating officer, the company upgraded and expanded the educational capacities of its schools by improving student services, updating the curriculum, upgrading facilities and equipment, and increasing the quality and quantity of faculty members.

Also during this time, the company gave increased attention to implementing technology in the classroom, embarking on a multimillion dollar investment in classroom technology to provide vocational training in computer animation, video production, and desktop publishing. EDMC instituted new programs and restructured several existing programs in order to improve the proportion of students who completed the programs. Some of the schools offering Associate degrees in interior design, industrial design, and graphics design built those programs into Bachelor of Arts degrees in 1993. EDMC also initiated career and employment programs to assist graduates in finding quality entry level positions with higher starting salaries.

In the early 1990s, EDMC began developing a culinary arts program, launching its School of Culinary Arts at the Colorado Institute of Art (CIA). Beginning in late 1993, that school offered an Associate of Applied Science degree, an 18-month to two-year program for the instruction of fine food preparation and fine dining restaurant operation. In March 1995 EDMC opened Assignments restaurant, a fully operational, 71-seat restaurant which provided an on-the-job training experience to students. On a rotating five-week schedule, students experienced all facets of restaurant operations, including table service, bar service, preliminary food preparation, and final food preparation for the customer. The facility featured a kitchen modeled after the one at New York's Waldorf-Astoria Hotel, with more than four times the space of an average restaurant kitchen. Through their assignments, students offered American cuisine to the public at lunch and added classic European cuisine for dinner in July.

EDMC pursued growth through the introduction of new schools and the acquisition of existing schools. In 1995 EDMC purchased two schools from the Ray College of Design, for $1.1 million and the assumption of debt, and renamed the schools The Illinois Institute of Art at Chicago and The Illinois Institute of Art at Schaumburg. EDMC also made the culinary arts program, with an Associate of Applied Science degree, an integral part of the Art Institute of Phoenix where classes commenced in January 1996. The following August the company acquired the New York Restaurant School for $9.5 million. Also, EDMC began to offered certificate programs for legal health care specialists and legal administrative assistants at the National Center of Paralegal Training in Atlanta.

In October 1996 the Pittsburgh Art Institute celebrated its 75th anniversary. Distinguished alumni at the festivities included Tom Wilson, creator of the 'Ziggy' comic strip, and Mark Stutzman, designer of the U.S. Postal Service's best-selling 'Elvis' stamp.

1996: Going Public and Continued Growth

EDMC funded further growth with an initial public offering of stock in October 1996. The company offered 5.4 million shares at $15 per share on the NASDAQ exchange and garnered approximately $45 million. The proceeds funded debt reduction and working capital as well as acquisitions and new schools. EDMC added the Lowthian College in Minneapolis to its chain in January 1997, renaming The Art Institutes International Minnesota. At the Colorado Institute of Art, EDMC expanded the Associate degree programs in interior design, industrial design, and graphic design into Bachelor of Science degree programs. The school also introduced an 18-month certificate program in web site administration, which involved existing multimedia and design classes as well as new programming classes staffed by three new faculty members. The Art Institute of Los Angeles opened for classes in October 1997.

For the fiscal year ending June 30, 1997, EDMC reported revenues of $182.8 million, an increase of 23 percent, while income reached $10 million, an increase of 46 percent. The company attributed the rise in income and revenues to increased enrollment and a 5.5 percent tuition increase during the fall 1996 quarter. Student enrollment had increased nearly 20 percent overall, averaging 14,490 students per quarter, while same-school enrollment at schools owned by EDMC for two or more years increased approximately 14 percent.

A secondary offering of stock in November 1997 raised $79.8 million for growth and improvement. Two acquisitions followed closely after the stock offering: the Louise Salinger Academy of Fashion in San Francisco and Bassist College in Portland, Oregon, renamed The Art Institutes International at San Francisco and The Art Institutes International at Portland, respectively. The Portland school offered Associate and Bachelor's degrees in apparel design, merchandising management, and interior design and a Bachelor's degree in business administration. EDMC expected its Associate degree recipients at the Art Institute of Seattle to consider Portland as an option for completion of a Bachelor's degree.

In consultation with professionals in computer design technology, EDMC began to formulate new educational programs and launched three new degree programs for Internet marketing and design in June 1999. The company offered a Bachelor of Science degree in online media and marketing, which involved classes on business strategy and online advertising. EDMC launched the program at the Colorado Institute of Art and planned to extend the programs to several other schools after government approval. The Art Institute of Phoenix offered a Bachelor's degree in game art and design, including character animation and complex mapping and modeling. An Associate degree in multimedia and web design involved interactive design and technical elements, such as audio, video animation, still pictures, text, and data. EDMC planned to offer the latter program in Atlanta, Chicago, Dallas, Houston, Ft. Lauderdale, Los Angeles, Minneapolis, Phoenix, Schaumburg, and Seattle.

By the end of fiscal year June 30, 1999, revenues at EDMC reached $260.8 million. Federal funding for student grants and loans comprised approximately 66 percent of revenues. Average quarterly enrollment reached 19,325 students compared to 17,002 students in fiscal 1998. Moreover, the company's stock, initially offered at $15 a share, had more than doubled to trade around $33 per share in early 1999. EDMC attributed growth in the student body to new educational programs, expanded degree programs, and more evening degree programs. Approximately 25 percent of the increase in enrollment stemmed from evening classes. Tuition increased six percent in 1999, while net income increased 30.9 percent, to $18.8 million. EDMC also reported that 91 percent of 1998 graduates found employment in their areas of study within six months of graduation. Starting salaries averaged $24,200 per year, a 7.2 percent increase over 1997 graduates.

Culinary arts education continued to be a major focus of growth, with three new programs initiated during the fiscal year. In January 1999 EDMC introduced a new culinary arts school at the Philadelphia Art Institute; facilities included Suburban Soup, a take-out restaurant at the Suburban Station transit center. EDMC also initiated plans for a culinary arts program at The Art Institute of Chicago which began in January 2000 with facilities expected to be fully operational for fall 2000.

EDMC's strategy for further growth involved the addition of two new schools per year. In August 1999 EDMC acquired the American Business and Fashion Institute in Charlotte. With 135 students, degree programs included interior design, fashion merchandising, and retail management. EDMC renamed the North Carolina school The Art Institute of Charlotte. A second acquisition involved the Massachusetts Communications College in Boston, with 450 students. The school offered Internet communications and technology; multimedia technology; and recording arts and broadcasting programs.

EDMC continued to improve educational programs at existing schools. In October 1999 the State of Pennsylvania approved EDMC to offer Bachelor of Arts degrees in computer animation, interior design, and industrial design technology at The Art Institutes in Pittsburgh and Philadelphia and a graphic design program at Pittsburgh. The new curriculum added management classes and other field-related courses. The New York Restaurant School, renamed the Art Institute of New York City, received approval to offer an Associate of Occupational Studies in art and design Technology. The program was slated to begin in January 2001. EDMC also planned to expand the culinary arts program there. The Art Institute of Phoenix initiated a Bachelor of Science degree program in online media and marketing.

EDMC sought to strengthen brand recognition for its educational programs among prospective students and corporate employers. A new marketing program promoted The Art Institutes as 'America's Leader in Creative Education.'

Planning for Future Growth

In fall 1999 EDMC introduced the Art Institute Online which offered 12 courses in graphic design. The pilot project was introduced through the Art Institutes of Phoenix and Ft. Lauderdale. The company intended the online courses as a precursor to an online Bachelor of Arts degree in graphic design, the first of its kind. The Socrates Distance Learning Technologies Group of Phoenix, acquired by EDMC in 1998, designed the courses.

EDMC established corporate partnerships to enrich student education with access to Internet infrastructure and functions. First Regional Telecom (FRT) and Tut Systems, Inc. provided students at the Art Institute of Philadelphia with email services, intranet, and access to the company's private label Web Neighborhood port. While FRT designed the port specifically for Art Institute students, allowing for interactive capabilities and possibilities for e-commerce, Tut Systems provided the infrastructure for high-speed access. MarketingCentral.com offered web-based capabilities for collaboration and management of creative projects to students at the Art Institute of Atlanta.

Growth in student enrollment required EDMC to relocate some schools to new facilities. In May the Colorado Institute of Art, renamed the Art Institute of Colorado, completed a move to a 100,000 square-foot, ten-story building near the site of the original school. The move allowed the school to consolidate offices and classrooms into one building, while adding more student-teacher conference rooms and a larger library. New technology involved the addition of a digital darkroom to the traditional photographer's darkroom and fully networked computer labs.

The Art Institute of Pittsburgh, renamed The Design Alliance, moved to a new facility in summer 2000. The $20 million project involved internal demolition of a historic landmark downtown. Renovation of the 170,000 square-foot building included up-dated electrical wiring and fiber optics, providing the infrastructure for 15 state-of-the-industry computer labs with 400 computers and Internet access for faculty and students alike. New technological capabilities included a digital darkroom, an industrial design technology shop, and video production and post-production facilities. EDMC projected enrollment at The Design Alliance to increase 30 to 40 percent during the 2000-2001 school year.

EDMC received approval by an accrediting organization to offer several new degree programs at the Art Institute International of Minnesota. With 700 students, the school planned to offer Associate of Applied Science and Bachelor of Science degrees in graphic design; interior design; media arts and animation; and Internet marketing and advertising. Associate degrees were also available in culinary arts, as well as in multimedia and web design. Also, the National Center for Paralegal Training received approval from the state of Georgia to offer an Associate of Arts in legal studies.

EDMC expanded into new markets with its 21st and 22nd schools. Classes commenced at The Art Institute of Washington in Roslyn, Virginia, in summer 2000. The Art Institute of Los Angeles-Orange County, where classes began in July 2000, offered Bachelor of Science programs in media arts and animation and in Internet marketing and advertising. Associate degree programs included graphic design and multimedia design, with the Culinary Arts school scheduled to open in summer 2001.

Principal Divisions: The Art Institutes; The Art Institutes International.

Principal Competitors: Apollo Group, Inc.; DeVry, Inc.; ITT Educational Services, Inc.

Related information about Education

What takes place when human beings learn something, often from others but sometimes for themselves. It may happen during the day in specially constructed buildings with qualified teachers following structured, approved courses based on books, equipment, or activities, or more informally away from institutions in homes, streets, or meeting places. It is not confined to traditional school subjects such as mathematics or history, though these will usually constitute an important part of it, nor is it offered only by paid teachers, for parents and elder brothers and sisters may well play a central part in it. Increasingly, education is seen as something which should develop the whole person, not just as a narrow academic training. Thus in a vast variety of locations around the world, from lavishly equipped buildings with the latest laboratory equipment to simple huts in poorer countries, children and adults are learning the basic skills of reading, writing, and arithmetic, developing qualities which will be valuable in adult life whether at home or work, and in many cases taking retraining courses because the job for which they originally prepared has been transformed.

There is considerable variety in educational provision. In some countries the curriculum is prescribed from the centre, with content, books, and even teaching styles laid down in the capital city; in others, with a less centralized curriculum, such decisions are delegated to regional or even individual school level. Most countries operate a primary phase for children up to 11 or 12, a secondary stage for those up to 15, 16, 17, or 18, and then further and higher education for anyone wishing to study beyond the minimum school-leaving age.

Through teaching and learning the individual acquires and develops knowledge, beliefs, and skills.

It is widely accepted that the process of education begins at birth and continues throughout life. Family members, peers, books and mass media have a strong influence on the informal education of the individual.

Philosophy of education

The philosophy of education are the study of the purpose, nature and ideal content of education. Related topics include knowledge itself, the nature of the knowing mind and the human subject, problems of authority, the relationship between education and society, and so on. At least since Rousseau's time, the philosophy of education has been linked to theories of developmental psychology and human development.

Fundamental purposes that have been proposed for education include:

The enterprise of civil society depends on educating young people to become responsible, thoughtful and enterprising citizens. This is an intricate, challenging task requiring deep understanding of ethical principles, moral values, political theory, aesthetics, and economics; not to mention an understanding of who children are, in themselves and in society.
Progress in every practical field depends upon having capacities that schooling can educate. Education thus is a means to fostering the individual's, society's, and even humanity's future development and prosperity. Emphasis is often put on economic success in this regard.
One's individual development and the capacity to fulfill one's own purposes can depend upon an adequate preparation in childhood. Education thus can attempt to give a firm foundation for the achievement of personal fulfillment. Simple basics in education can carry a child far.

The nature, origin and scope of knowledge

A central tenet of education typically includes ?the imparting of knowledge.? The branch of philosophy that addresses these and related issues is known as epistemology. This area of study often focuses on analyzing the nature and variety of knowledge and how it relates to similar notions such as truth and belief.

While the term, knowledge, often is used to convey this general purpose of education, it also can be viewed as part of a continuum of knowing that ranges from very specific data to the highest levels. This continuum may include notions such as data, information, knowledge, wisdom, and realization.

Psychology of education

Educational psychology is the study of how humans learn in educational settings, the effectiveness of educational interventions, the psychology of teaching, and the social psychology of schools as organizations. Although the terms "educational psychology" and "school psychology" are often used interchangeably, researchers and theorists are likely to be identified as educational psychologists, whereas practitioners in schools or school-related settings are identified as school psychologists. Educational psychology is concerned with the processes of educational attainment among the general population and sub-populations such as gifted children and those subject to specific disabilities.

Educational psychology can in part be understood through its relationship with other disciplines. It is informed primarily by psychology, bearing a relationship to that discipline analogous to the relationship between medicine and biology. Educational psychology in turn informs a wide range of specialities within educational studies, including instructional design, educational technology, curriculum development, organizational learning, special education and classroom management. Educational psychology both draws from and contributes to cognitive science and the learning sciences.

Academic disciplines

An academic discipline is a branch of knowledge which is formally taught, either at the university, or via some other such method. Functionally, disciplines are usually defined and recognized by the academic journals in which research is published, and the learned societies to which their practitioners belong.

Each discipline usually has several sub-disciplines or branches and distinguishing lines are often both arbitrary and ambiguous. Examples of broad areas of academic disciplines include the natural sciences, mathematics, computer science, social sciences, humanities and applied sciences. The best teachers are able to translate knowledge of a subject, good judgment, experience, and wisdom into a significant knowledge of a subject that is understood and retained by the student. The passing of knowledge from generation to generation allows the student to grow into a useful member of society.

A teacher should have a firm grasp of a given knowledge area so that they can pass it on to their students using whatever techniques work. Formal education systems can be used to promote doctrines or ideals as well as knowledge and this can sometimes lead to abuse of the system.

Life-long or adult education has become widespread in many countries.

Alternative education

Alternative education, also known as non-traditional education or educational alternative, describes a number of approaches to teaching and learning other than traditional publicly- or privately-run schools. These approaches can be applied to all students of all ages, from infancy to adulthood, and all levels of education.

Educational alternatives often are the result of education reform and are rooted in various philosophies that are fundamentally different from those of mainstream compulsory education. While some have strong political, scholarly, or philosophical orientations, others are more informal associations of teachers and students somehow dissatisfied with certain aspects of mainstream education.

Educational alternatives, which include charter schools, alternative schools, independent schools, and home schooling vary widely, but often emphasize the value of small class size, close relationships between students and teachers, and a sense of community. For some, especially in the United States, the term alternative refers to educational settings for "at-risk" youth, as well as those in need of special education, rather than educational alternatives for all students.

Technology

Inexpensive technology is an increasingly influential factor in education. Computers and mobile phones are being widely used in developed countries to both complement established education practices and develop new ways of learning such as online education (a type of distance education). Technology clearly offers powerful learning tools that can engage students, such as classroom management software.
Not only is technology being used more in the administrative duties in education but also in the instruction of students. Technologies such as the use of PowerPoint and interactive whiteboard are capturing the attention of students in the classroom. Educators such as George Counts and Paulo Freire identified education as an inherently political process with inherently political outcomes. The challenge of identifying whose ideas are transferred and what goals they serve has always stood in the face of formal and informal education.

In addition to the "Three R's", reading, writing, and arithmetic, Western primary and secondary schools attempt to teach the basic knowledge of history, geography, mathematics (usually including calculus and algebra), physics, chemistry and sometimes politics, in the hope that students will retain and use this knowledge as they age or that the skills acquired will be transferrable. The grades usually come in the form of either a letter grade or a percentage, which are intended to represent the amount of all material presented in class that the student understood.

Educational progressives or advocates of unschooling often believe that grades do not necessarily reveal the strengths and weaknesses of a student, and that there is an unfortunate lack of youth voice in the educative process. Some feel the current grading system lowers students' self-confidence, as students may receive poor marks due to factors outside their control. Such factors include poverty, child abuse, and prejudiced or incompetent teachers.

By contrast, many advocates of a more traditional or "back to basics" approach believe that the direction of reform needs to be the opposite. Their view of self-confidence is that it arises not from removing hurdles such as grading, but by making them fair and encouraging students to gain pride from knowing they can jump over these hurdles.

On the one hand, Albert Einstein, the most famous physicist of the twentieth century, credited with helping us understand the universe better, was not a model school student. There are also some philosophies, for example Transcendentalism, that would probably reject conventional education in the belief that knowledge should be gained through purely personal experience.

A recent book argues that children are being expected to learn too much. Teachers are often paid less than other similar professions.

A lack of good universities, and a low acceptance rate for good universities is evident in countries with a relatively high population density. In some countries there are uniform, overstructured, inflexible centralized programs from a central agency that regulates all aspects of education.

Due to globalization, increased pressure on students in curricular activities
Removal of a certain percentage of students for improvisation of academics (usually practised in schools, after 10th grade)

India however is starting to develop technologies that will skip land based phone and internet lines. Instead, India launched EDUSAT an education satellite that can reach more of the country at a greatly reduced cost. The laptops, sold at cost, will enable developing countries to give their children a digital education, and to close the digital divide across the world.

In Africa, NEPAD has launched an "e-school programme" to provide all 600,000 primary and high schools with computer equipment, learning materials and internet access within 10 years.

Private groups, like The Church of Jesus Christ of Latter-day Saints, are working to give more individuals opportunities to receive education in developing countries through such programs as the Perpetual Education Fund.

An International Development Agency Nabuur.com started with the support of American President Bill Clinton uses the internet to allow co-operation by individuals on issues of social development.

Parental involvement

Parental involvement is a necessary thing when it comes to a child's educational development. Early and consistent parental involvement in the child's life is critical such as reading to children at an early age, teaching patterns, interpersonal communication skills, exposing them to diverse cultures and the community around them, educating them on a healthy lifestyle, etc. The socialization and academic education of a child are aided by the involvement of the student, parent(s), teachers, and others in the community and extended family. Many schools are now beginning parental involvement programs in a more organized fashion, in part due to the No Child Left Behind legislation from the US Department of Education.

References

Dubois, H.F.W., Padovano G.

Chronology

Key Dates:
1962: Education Management Corporation (EDMC) is founded.
1970: Company acquires The Art Institute of Pittsburgh.
1971: Company begins a series of eight acquisitions.
1993: EDMC initiates four-year degree programs.
1996: Initial public offering of stock.
1997: Average enrollment reaches 14,490 students.
1999: Company launches The Art Institute Online.
2000: EDMC opens The Art Institute of Washington, D.C.

Additional topics

Company HistoryPublishing

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