Source - Education Management Corporation

MENTOR LEADER FRIEND TEACHER
EDMC
Finding Your Way –
Making Your Mark
Education Management Corporation
2005 Annual Report

Molly Deas, Instructor, Interior Design
The Art Institute of Portland
Portland, Oregon
3 Letter to Shareholders
6 Operating Highlights
7 Finding Your Way – Making Your Mark
16 Financial Summary
19 Board of Directors
20 EDMC School Listings
ibc Shareholder Information

ANNUAL REPORT
“Teaching requires being intuitive and sensing what students need in order
to succeed. Experience guides me, and I’m not afraid to alter the lesson
plan when I think it’s necessary. I find that when my students are excited
about a project or subject matter, their work naturally reflects that and
they shine.” MOLLY DEAS ■ “Molly does more than teach design, she lives
it. We all feed off her passion. Best of all, she’s secure and open enough to
feed off our passion and interests. She’ll tune in to what we’re excited about
and weave it into the discussion. It’s all seamless, and a couple of hours will
go by and we’ve forgotten that it’s school. JAMES BURBACK”
FINDING YOUR WAY–
MAKING YOUR MARK
EDMC
Molly Deas, an Instructor of Interior Design at The Art Institute of Portland, sends
a powerful message to her students through her interest in sustainable design.
Molly focuses on the many ways that green materials and approaches can change
the relationship between people and spaces. New ideas in every field of study,
remind us all, people and organizations alike, of the need to continually learn and
adapt. Molly's insights also remind us that the spaces we occupy must go beyond
their material properties to sustain our complex human needs. The same is true
for a wide-reaching educational enterprise such as EDMC. We continue to build
impressive campuses, laboratories, computer centers, medical simulation rooms,
animation studios and other current technology facilities. And yet we are far more
than the sum of these spaces. We measure our success by the success of our
students. Molly is an example of how important faculty support of our students
is to their success.
FINDING YOUR WAY – MAKING YOUR MARK • 2005 • P1

EDUCATION MANAGEMENT CORPORATION
John R. McKernan, Jr.
Chief Executive Officer
Photographed in The Art Institute
of Pittsburgh Gallery of Art

ANNUAL REPORT
“EDMC and its faculty know
how important it is to adapt to
change. We are customizing
learning options to fit a person’s
schedule, interests, learning style
and other needs.”John R. McKernan, Jr.
2005
TO OUR SHAREHOLDERS
“Finding Your Way – Making Your Mark.”
These few words describe the relationship of
our faculty to our students. In this year’s annual
report, you will read how EDMC is making its
mark in the education industry, and how our
faculty is making their mark through the way
they are engaged with our students. The featured
faculty remind us what a difference that
engagement ultimately means to students as they
find their way, and how, one teachable moment
and one student at a time, we make the world a
better place as these students prepare to make
their mark in their careers. The profiled faculty
represent each of our education systems, so their
approaches are unique to their fields; however,
the common denominator is their commitment to
the EDMC philosophy of “learning-centered,
career-focused education.”
That philosophy has proven again this year
that it benefits all of our shareholders. During
fiscal 2005, EDMC continued its track record of
long-term, sustainable growth. Reflecting
enrollment growth and strong fundamentals,
our consolidated net revenues grew 19.5% to
$1,019 million, operating margins expanded by
95 basis points, and earnings per share rose
31% to $1.35. Average student enrollment grew
16%, with same-school enrollment up 12%.
Since going public in 1996, EDMC’s total
student enrollment has increased at an average
annual rate of 20%, with over two-thirds of this
growth organic. In addition, the average annual
growth in net revenues and earnings per share
has been greater than 21% and 29%, respectively.
We continue to see significant opportunity
for our online delivery models. We offer a variety
of higher education programs from 100% online
at The Art Institute Online, a division of The Art
Institute of Pittsburgh, and South University to
individual online courses at The Art Institutes,
South University and Argosy University that can
be blended with traditional classroom courses and
degrees. The total number of online course-takers
this past summer has increased 35% to 7,709,
while the number of students taking 100% of their
coursework online has grown from 1,940 to 3,461.
During fiscal year 2005, we opened five new
campuses as shared-services locations: The Art
Institute of Ohio - Cincinnati and Brown Mackie
Colleges in Miami, Los Angeles, Orange County
(CA), and San Diego. Our expansion strategy
FINDING YOUR WAY – MAKING YOUR MARK • 2005 • P3

EDUCATION MANAGEMENT CORPORATION
of utilizing shared-services locations, where we
co-locate schools from our different education
systems, enables us to benefit shareholder value
by sharing classroom space and staff. During
fiscal year 2006, we plan to open five additional
campuses, all as shared-services locations, the
first being the July opening of a Brown Mackie
College in Denver.
Not surprisingly, the fastest growing source
of inquiries is the Internet. Since November 2004,
we have increased our advertising on the Web,
resulting in a significant increase in total inquiries
versus the last fiscal year. We have retained topquality
firms to assist in gathering these inquiries,
and increased training for our admissions staff
on handling Internet inquiries. In addition, high
school visits are still an extremely important part
of our strategy. Over the past year, we visited
almost 20,000 high schools, up 7% from last year,
generating a 14% increase in high school inquiries
from the previous year. We have also worked to
control the mix and type of inquiry so there is
a better balance among our schools in order to
facilitate inquiry conversions. We believe that the
marketing plan established during fiscal 2005 has
better positioned us for continued enrollment
growth in the years to come.
Over the past year, we have introduced approximately
120 new and transplanted academic
programs across EDMC’s education systems.
We added eleven new education programs,
including associate’s degrees in Baking & Pastry,
Gerontology, Healthcare Administration, Medical
Office Management, Pharmacy Technology, Sales
& Marketing and Surgical Technology; bachelor’s
degrees in Design Management, Healthcare
Management and Information Technology;
and an Anesthesiology Assistant master’s degree
FALL QUARTER ENROLLMENT
NET REVENUES dollars in millions
NET INCOME dollars in millions
EARNINGS PER SHARE diluted
70m
60m
50m
40m
30m
20m
10m
0m
01
02
03
04
05
$1200
1100
1000
900
800
700
600
500
400
300
200
100
0
01
02
03
04
05
$120
100
80
60
40
20
0
01
02
03
04
05
$1.50
1.20
.90
.60
.30
.0
01
02
03
04
05

ANNUAL REPORT
We are pleased to report that during the calendar
year ended December 31, 2004, 86% of total
available graduates from our undergraduate programs
were employed within six months of graduation
with an average starting salary of $27,470.
program. Once again, we expect to roll out
approximately 120 education programs during the
current fiscal year. We will continue to develop
new programs as well as transplant existing
programs from one education system to another.
For example, we anticipate transplanting the
Graphic Design associate’s and bachelor’s degree
programs from The Art Institutes to several of
our South University campuses during fiscal 2006.
The success of our delivery models and
diverse academic programs, our company-wide
commitment to our students, and the preparation
of our students for their careers is best exemplified
by the employment of our graduates in their field,
or a related field, of study. We are pleased to report
that during the calendar year ended December 31,
2004, 86% of total available graduates from our
undergraduate programs were employed within
six months of graduation with an average
starting salary of $27,470.
Our Company’s mission is to help students
begin or advance in their chosen career fields.
Our education systems strive for excellence by
developing and delivering academic programs
that meet the needs of employers; having faculty
with experience in their field as well as the
required academic credentials; providing flexible
campus-based and online course delivery options
with appropriate facilities and technology;
and maintaining a commitment to student and
graduate success. After helping our students
tailor class schedules that fit their lifestyles, they
receive personalized, hands-on instruction from
caring, energetic faculty dedicated to the success
of their students.
The faculty members spotlighted on the
following pages are shining examples of individuals
who, having combined their love of teaching
with their life passions, have found their way
and are making their mark on both their students
and communities. They have become more than
just teachers; they have become leaders, mentors
and friends.
John R. McKernan, Jr.
Chief Executive Officer
FINDING YOUR WAY – MAKING YOUR MARK • 2005 • P5

EDUCATION MANAGEMENT CORPORATION
OPERATING HIGHLIGHTS
dollars in thousands, except per share data
% change (2)
2001 2002 2003 2004 2005 2004 to 2005
Operating Results:
Net revenues $ 370,681 $ 500,576 $ 640,027 $ 853,019 $1,019,338 19.5%
Income before interest
and taxes (EBIT) $ 49,675 $ 68,967 $ 92,733 $ 132,986 $ 168,588 26.8%
EBIT Margin 13.4% 13.8% 14.5% 15.6% 16.5%
Net Income $ 28,978 $ 42,314 $ 56,277 $ 77,014 $ 101,574 31.9%
Diluted earnings per share (1) $ 0.46 $ 0.61 $ 0.77 $ 1.03 $ 1.35 31.1%
Balance Sheet Data:
Total assets $ 287,540 $ 492,655 $ 577,595 $ 827,999 $ 956,027 15.5%
Shareholders’ equity $ 159,949 $ 346,577 $ 427,779 $ 528,687 $ 666,010 26.0%
Other Selected Data:
Capital expenditures $ 47,477 $ 45,400 $ 80,809 $ 80,703 $ 71,205 (11.8%)
Schools at end of period 24 40 43 67 71
Student enrollment:
Beginning of fall quarter 27,718 32,180 43,784 58,828 66,179 12.5%
Fiscal year average 25,284 32,545 40,457 53,724 62,384 16.1%
(1) Periods prior to fiscal 2004 adjusted to reflect a 2-for-1 stock split on December 22, 2003.
(2) During fiscal 2004, the Company made several acquisitions that impacted the indicated growth.

ANNUAL REPORT
MENTOR LEADER FRIEND TEACHER
Finding Your Way – Making Your Mark
in the field of education means anticipating
employer demand, and responding quickly
with new and revised program designs and
timely faculty recruitment. Change is a
constant, and we commit EDMC’s resources
to respond quickly to opportunity, ensuring
that our students maintain a competitive
edge. EDMC will once again roll out
approximately 120 new and transplanted
programs during fiscal 2006.
FINDING YOUR WAY – MAKING YOUR MARK • 2005 • P7

EDUCATION MANAGEMENT CORPORATION
Jerry Lee Brice
Instructor, Multimedia
The Art Institute of California - San Diego
San Diego, California

THE ART INSTITUTES
“I take the approach that the student-teacher relationship is just for three
years. My hope is to remain colleagues and friends for much longer. I see
the classroom as a two-way exchange. Everything that I give as a teacher
comes back to me tenfold. Listening to and learning from my students
prevents me from becoming comfortable or obsolete. In the process, we
all become more interesting people.” JERRY BRICE ■ “Jerry isn't afraid to
bring attention to some aspect of your work that needs to be improved.
At the same time, he treats you like he would any colleague or professional.
He inspires with his example and his feedback. DIANA ARECHIGA”
Keeping it real: Jerry Brice stands with one foot in
the fast-moving, anything-is-possible entertainment
industry, and the other firmly planted in reality. He
offers students a bridge and road map for crossing
between these sometimes divergent worlds. “You
can’t declare yourself an artist without someone
dismissing such goals as foolish dreams. My job is
to help students see that dreams can be broken into
smaller, more attainable goals. Otherwise, they
remain something invisible and out of reach.”
With two decades’ worth of TV & film animation
and music video credits to his name, Jerry points
to the quiet example and mentoring he found from
the father of a childhood friend. “All it takes is one
person’s example, and a young person will figure
out where and how to direct their passion. I try
to be that person.” He’s even gone so far as to
invite students to Hollywood events as part of the
acclimation process. “I think students learn from
observing what you do more than from what
you say.”
Bridging art and technology: Jerry believes the current
generation of young artists will surely accomplish
more than he ever imagined possible. But to realize
the potential, they must first acquire a balance
between specialization and broad exposure to
traditional disciplines; a perfect marriage of technical
and creative training.
Students must gain an aesthetic foundation (light,
form, color and function), along with a refined sense
of story structure and development. They must also
show an ability to execute and implement ideas with
flair and technical efficiency.
Demand for these hybrid talents continues to
grow in TV & film animation, industrial design,
and gaming. Exciting opportunities await animation
artists, special effects artists, broadcast graphics
designers, and video post-production artists.
Responding to creative demands: The Art Institute
of California – San Diego has grown rapidly in
recent years on the strength of its faculty and a
forward-minded approach to arts education.
Students from these closely aligned fields join
with industry mentors and like-minded peers to
create a vibrant learning environment. Streaming
light, open and inviting spaces, and current technology
tools and facilities all combine to encourage
teacher and student exploration and mastery.
FINDING YOUR WAY – MAKING YOUR MARK • 2005 • P9

EDUCATION MANAGEMENT CORPORATION
Carol Lee Jarrell
Department Chair, Medical Assisting
Brown Mackie College - Merrillville
Merrillville, Indiana

BROWN MACKIE COLLEGE
Life changing: Carol Jerrell has been on both the
giving and receiving end of lifesaving medical care.
Three years ago, Carol was diagnosed with breast
cancer, which she confronted with the same steadfast
optimism she’s modeled to her students through their
life trials and detours. “We all have situations in
our lives that require us to rise above,” she says. “I
couldn’t have made it through without my students.
They kept me focused on the everyday and normal,
rather than on myself.”
Last year, Carol was named Volunteer of the Year
by the American Cancer Society for her efforts in
organizing Brown Mackie College - Merrillville
volunteers in support of the Relay for Life, a 24-hour
fund-raising event. She recalls a favorite moment
from the annual event, when luminaria bags,
decorated to honor loved ones, are set along the track
and the stadium lights go dark. “Standing there, you
really feel the outpouring of compassion,” Carol says.
“I’m reminded of the strong desire to help others that
draws me and my students to the medical field.”
Keeping pace: In a field as rapidly changing as healthcare,
the teacher must remain a lifelong student.
Carol’s vitae of continuing education training runs
the gamut, from allergies and bacterial resistance
issues to medical malpractice and HIPPA. “I do it all
for the students,” she says. “I can’t just talk the talk.
I have to demonstrate a commitment to providing
the best possible patient care. They will do as I do
as a medical professional, not what I say.”
Carol recognizes medical offices will continue
to evolve, spurred by new technology, treatment
protocols and the growing role of information in
patient diagnosis and care. “Every aspect of medical
care is growing more complex,” she says. As such
things as genetics and family history become more
integrated into care, and as research reaches the
bedside more quickly, all members of the care team
will need to respond.
Brown Mackie College schools pride themselves
on a change-oriented approach to curriculum,
giving students the most timely information and
exposure to new technology and treatment methods.
Brown Mackie College offers training in a full range
of health science specialties including Gerontology,
Occupational and Physical Therapy, Nursing and
Surgical Technology.
“Carol traces her instinct for teaching to her toddler years. She recalls
gathering her plush animals for a daily lesson in hygiene, using soap on
a mirror to substitute for chalk and blackboard. “The urge to teach has been
a part of me for as long as I can remember.” CAROL JERRELL ■ ”Carol
is determined to be a positive role model for her students. She will not allow
you to give in to negative thinking. Her attitude makes the difference. You
come away thinking, ‘yes, I can do this.’ MICHELLE WINKLER”
FINDING YOUR WAY – MAKING YOUR MARK • 2005 • P11

EDUCATION MANAGEMENT CORPORATION
Larry Gay Reagan
Faculty, General Education
Argosy University
Sarasota, Florida

ARGOSY UNIVERSITY
“I believe I have a gift for motivating students. They really appreciate the
time and care I give to their development. I try to add an extra element
of warmth and touch. It comes in different forms. I coach, prod, support,
guide, and mentor. They all yield the same reward, which is seeing a
student reach their greatest potential and become something more than
they could, at one time, imagine.” LARRY GAY REAGAN ■ “Dr. Reagan
has been a mentor, guide and true friend during my transition from public
k-12 education to higher education. She’s a joy to be around, and the
consummate academic professional. DR. KARL STERNER”
The woman who runs with wolves. In one legend from
Native American and Latina desert cultures, gifts of
nature that could be lost to the world are resurrected
through the persistence and care of La Loba, the
wolf woman.
Author Clarrisa Pinkola Estés describes the
essence of this female archetype as someone “filled
with good instincts, passionate creativity, and ageless
knowing." Many students and colleagues apply that
description to Larry Gay, who introduces folktales
and other legends in her work with students enrolled
in Argosy University’s Doctor of Education in
Educational Leadership (EdD) program.
“I sometimes end a class with a bit of legend
and song as a way of building community and
opening minds to other approaches,” Larry Gay says.
“Becoming a leader in the field of education involves
more than mastering theory. Educators are charged
with inspiring people to transform themselves,
and transformation is a recurring theme in many
folk stories.”
Larry Gay holds master’s degrees in health
education and Spanish, and a doctorate in education.
She’s developed international programs in Latin
America, launched major diversity training and
curriculum revision initiatives and organized a
Celebration of the Arts. She was recently named
Outstanding Faculty Member of the Year for
2004–2005.
She draws upon her vast knowledge of art,
music, improvisational theatre, world cultures and
languages to inspire and communicate. “Nobody
wants to hear me or anyone else lecture for three
hours,” she says. “I look for active learning
strategies that turn the classroom into a dynamic
workshop and stage.”
Future school leaders: An important aspect of
Larry Gay’s work is preparing women and others
representing minority populations for positions
of educational leadership. “Schools reflect the full
diversity of this nation,” she says. “Our future
school leaders need to be equally diverse.”
Argosy University/Sarasota’s College of
Education and Human Development offers both
Master of Arts and Doctor of Education degrees
in Curriculum & Instruction and Educational
Leadership. The School of Professional Psychology
and Behavioral Sciences offers additional programs
for school professionals, including an Education
Specialist in School Counseling (EdS), Master of Arts
in Guidance Counseling, and Master of Arts in
School Psychology.
FINDING YOUR WAY – MAKING YOUR MARK • 2005 • P13

EDUCATION MANAGEMENT CORPORATION
Martin Zdanowicz
Associate Professor, Pharmaceutical Sciences
South University
Savannah, Georgia

SOUTH UNIVERSITY
Prior to teaching, Martin Zdanowicz spent more
than a decade as a graduate and doctoral student
and researcher, working in such areas as pediatric
endocrinology and muscular dystrophy. In that
time, he learned a thing or two about self-discipline
and delayed reward – two constants in any
scientific endeavor.
“I tell my students, it all comes down to what
you want most,” Marty says. “If it’s a career like
pharmacy that pays well and gives you so many
opportunities, then you’ll decide to make the shortterm
sacrifices. There aren’t that many fields where,
after three years of study, you have a chance to
earn more than your instructor.”
Marty has no regrets about the path he chose.
“Once I began a teaching career, I couldn’t imagine
doing anything else,” he says. He has earned
numerous teaching honors along the way – not that
such recognition ever prompted complacency. “I’m
as nervous now before a class as I was 10 years ago.
Students will ask why I pace, and I say, ‘This is
how I relax.’ As soon as the first word comes out
of my mouth, I’m fine. I feel like I’m in the
right place doing exactly what I should be doing.”
Medicine’s fast track: Marty sees a bright future for
his students. In a world of increasingly customized
medicine, diagnostics and drug delivery, pharmacists
will play a vital role in drug therapy decision making
and patient counseling.
South University recently launched an innovative,
full-time, 12-quarter Doctor of Pharmacy program.
As a capstone experience, students complete
five-week rotations in Drug Information, Internal
Medicine, Ambulatory Care, Hospital Pharmacy
Practice, Community Pharmacy Practice, and one
elective rotation.
This type of accelerated program is currently
available at only five of the nation’s 90 pharmacy
schools, and South University offers the only
accelerated program currently located in the south
and southeast.
Meeting student needs: South University follows
a tradition of growth and innovation leading to
wide-ranging opportunities in the health sciences,
business and legal professions at campuses in
Savannah, Georgia; Montgomery, Alabama; West
Palm Beach, Florida; and Columbia, South Carolina.
“I prepared a set of detailed notes before I taught my first class.
As the students filed in, I realized this approach wasn’t going to work.
I had five minutes to do an instant revision, not just of my notes,
but of my whole approach to teaching. I learned to trust my instincts
and to use information as a way of connecting with students.” MARTIN
ZDANOWICZ ■ “Dr. Zdanowicz has a way of interacting with students that
keeps our interest high. He’s always challenging us to think and to apply our
problem-solving skills. He’ll put a slide up and give us an impromptu quiz as a
way of re-energizing the class in the middle of a presentation. RENEE LYON”
FINDING YOUR WAY – MAKING YOUR MARK • 2005 • P15

EDUCATION MANAGEMENT CORPORATION
Condensed Consolidated BALANCE SHEETS*
dollars in thousands
As of June 30, 2002 2003 2004 2005
Assets
Current assets:
Cash, cash equivalents and restricted cash $ 92,123 $ 89,552 $ 123,142 $ 176,866
Receivables, net 30,378 40,641 52,196 57,968
Inventories 3,932 4,371 5,002 5,598
Other current assets 13,609 26,458 24,714 39,246
Total current assets 140,042 161,022 205,054 279,678
Property and equipment, net 191,698 230,749 276,148 325,796
Intangibles and other long-term assets 160,915 185,824 346,797 350,553
Total assets $ 492,655 $ 577,595 $ 827,999 $ 956,027
Liabilities and shareholders’ equity
Current liabilities, excluding current portion of LTD $ 114,596 $ 105,127 $ 156,314 $ 166,487
Long-term debt, including current portion 28,576 38,500 128,560 70,420
Other long-term liabilities 2,906 6,189 14,438 53,110
Total shareholders’ equity 346,577 427,779 528,687 666,010
Total liabilities and shareholders’ equity $ 492,655 $ 577,595 $ 827,999 $ 956,027
* The condensed financial statements presented above were derived from the audited financial statements included in the Company’s report on Form 10-K.

ANNUAL REPORT
During fiscal 2005, EDMC continued its track record
of long-term, sustainable growth. Reflecting enrollment
growth and strong fundamentals, our consolidated
net revenues grew 19.5% to $1,019 million, and EPS
rose 31% to $1.35.
Condensed Consolidated STATEMENT OF OPERATIONS*
in thousands, except share data
For the Year Ended June 30, 2002 2003 2004 2005
Net Revenues $ 500,576 $ 640,027 $ 853,019 $1,019,338
Costs and expenses:
Educational services 325,027 417,557 546,132 640, 445
General and administrative 102,486 125,294 166,990 203,813
Amortization of intangible assets 4,096 4,443 6,911 6,492
431,609 547,294 720,033 850,750
Income before interest and taxes 68,967 92,733 132,986 168,588
Interest (income) expense, net 1,552 1,282 2,475 (220)
Income before income taxes 67,415 91,451 130,511 168,808
Provision for income taxes 25,101 35,174 53,497 67,234
Net income $ 42,314 $ 56,277 $ 77,014 $ 101,574
Earnings per share:
Diluted $ 0.61 $ 0.77 $ 1.03 $ 1.35
Weighted average number of shares outstanding:
Diluted 68,958 73,018 74,870 75,153
* The condensed financial statements presented above were derived from the audited financial statements included in the Company’s report on Form 10-K.
FINDING YOUR WAY – MAKING YOUR MARK • 2005 • P17

EDUCATION MANAGEMENT CORPORATION
Condensed Consolidated STATEMENTS OF CASH FLOW*
dollars in thousands
For the Year Ended June 30, 2002 2003 2004 2005
Cash flows from operating activities:
Net income $ 42,314 $ 56,277 $ 77,014 $ 101,574
Depreciation and amortization 29,968 40,477 48,376 53,985
Landlord allowances for tenant improvements – – – 14,629
Amortization of intangibles 4,096 4,443 6,911 6,492
Non-cash charges related to property, plant and equipment – – – 8,002
Stock-based compensation expense – – 871 1,044
Deferred income taxes (2,791) (97) (2,232) 424
Changes in current assets and liabilities 26,837 (21,714) 32,356 7,039
Net cash flows from operating activities 100,424 79,386 163,296 193,189
Cash flows used for investing activities:
Acquisition of subsidiaries, net of cash acquired (104,396) (23,661) (157,777) (12,298)
Expenditures for property and equipment (45,400) (80,809) (80,703) (71,205)
Landlord allowances for tenant improvements – – – (14,629)
Investment in marketable securities – – – (59,815)
Redemption of marketable securities – – – 59,815
Other items, net (4,441) (3,966) 1,546 (659)
Net cash flows used for investing activities (154,237) (108,436) (236,934) (98,791)
Cash flows from (used for) financing activities:
Net activity under revolving credit facility (28,525) 10,000 90,100 (63,100)
Changes in debt balances (8,756) (329) (78) 2,935
Net proceeds from issuance of Common Stock 135,808 14,581 12,018 21,169
Net cash flows from (used for) financing activities 98,527 24,252 102,040 (38,996)
Effective exchange rate changes on cash
and cash equivalents 337 1,632 (631) (156)
Net change in cash and cash equivalents 45,051 (3,166) 27,771 55,246
Cash and cash equivalents, beginning of fiscal year 47,072 92,123 88,957 116,728
Cash and cash equivalents, end of fiscal year $ 92,123 $ 88,957 $ 116,728 $ 171,974
* The condensed financial statements presented above were derived from the audited financial statements included in the Company’s report on Form 10-K.

ANNUAL REPORT
Board of DIRECTORS
MANAGEMENT
Committee
Robert B. Knutson
Chairman
Education Management Corporation
Robert H. Atwell
President Emeritus
American Council on Education
William M. Campbell, III
President
Discovery Networks, U.S.
Thomas J. Colligan
Former Vice Chairman
PricewaterhouseCoopers LLP
Michael J. Emmi
Chairman and Chief Executive Officer
IPR International, LLC
Martin L. Garcia
Managing Director
Pinehill Capital Partners
Jerry L. Johnson
President
eMoney Advisor
Miryam L. Knutson
Former Vice Chairman
Education Management Corporation
John R. McKernan, Jr.
Vice Chairman and
Chief Executive Officer
Education Management Corporation
James S. Pasman, Jr.
Former President and
Chief Operating Officer
National Intergroup, Inc.
Former Chairman
Permian Oil Corporation
Friedrich Teroerde
Chairman
ELG Haniel GmbH
Albert Greenstone
Emeritus Director
The National Center for
Professional Development
John R. McKernan, Jr.
Vice Chairman and
Chief Executive Officer
J. William Brooks, Jr.
President and Chief Operating Officer
Robert B. Knutson
Chairman
Robert T. McDowell
Executive Vice President and
Chief Financial Officer
Stacey Sauchuk
Senior Vice President
Academic Programs and Student Affairs
Joseph A. Charlson
Senior Vice President and
Chief Marketing Officer
Ronald W. Ogrodnik
Senior Vice President
Human Resources
FINDING YOUR WAY – MAKING YOUR MARK • 2005 • P19

EDUCATION MANAGEMENT CORPORATION
EDUCATION MANAGEMENT CORPORATION
THE ART INSTITUTES
The Art Institute of Atlanta ® , GA
The Art Institute of California SM – Los Angeles
The Art Institute of California SM
– Orange County
The Art Institute of California SM – San Diego
The Art Institute of California SM
– San Francisco
The Art Institute of Charlotte ® , NC
The Art Institute of Colorado ® (Denver)
The Art Institute of Dallas ® , TX
The Art Institute of Fort Lauderdale ® , FL
The Art Institute of Houston ® , TX
The Art Institute of Las Vegas ® , NV
The Art Institute of New York City ® , NY
The Art Institute of Ohio – Cincinnati SM
The Art Institute of Philadelphia ® , PA
The Art Institute of Phoenix ® , AZ
The Art Institute of Pittsburgh ® , PA
The Art Institute of Portland ® , OR
The Art Institute of Seattle ® , WA
The Art Institute of Tampa SM , FL
A branch of Miami International University
of Art & Design
The Art Institute of Toronto SM , ON
The Art Institute of Vancouver SM , BC
The Art Institute of Vancouver – Burnaby SM , BC
The Art Institute of Washington ®
(Arlington, VA)
A branch of The Art Institute of Atlanta
The Art Institute Online SM
A division of The Art Institute of Pittsburgh
The Art Institutes International Minnesota SM
(Minneapolis, MN)
Bradley Academy for the Visual Arts SM
(York, PA)
California Design College SM
(Los Angeles – Wilshire Blvd.)
The Illinois Institute of Art ® – Chicago
The Illinois Institute of Art ® – Schaumburg 1
Miami International University of Art
& Design SM , FL
The New England Institute of Art SM
(Boston, MA)
1
Accredited by ACCSCT as a branch of
The Illinois Institute of Art – Chicago
ARGOSY UNIVERSITY
Primary Campuses:
Atlanta, GA
Chicago, IL
Dallas, TX
Honolulu, HI
Orange County, CA
Phoenix, AZ
San Francisco Bay Area, CA
Sarasota, FL
Schaumburg, IL
Seattle, WA
Tampa, FL
Twin Cities, MN
Washington, DC
Extension Sites:
Clearwater, FL
Hilo, HI
Kauai, HI
Maui, HI
Nashville, TN
Savannah, GA
Western State University College of Law
(Fullerton, CA)
Argosy Professional Services:
Association for Advanced Training
in Behavioral Sciences (AATBS)
The Connecting Link (Ventura, CA)
BROWN MACKIE COLLEGE
Brown Mackie College – Akron, OH
Brown Mackie College – Atlanta, GA
Brown Mackie College – Cincinnati, OH
Brown Mackie College – Dallas, TX
Brown Mackie College – Denver, CO
Brown Mackie College – Findlay, OH
Brown Mackie College – Fort Worth, TX
Brown Mackie College – Fort Wayne, IN
Brown Mackie College – Hopkinsville, KY
Brown Mackie College – Kansas City, KS
Brown Mackie College – Los Angeles, CA
Brown Mackie College – Louisville, KY
Brown Mackie College – Merrillville, IN
Brown Mackie College – Miami, FL
Brown Mackie College – Michigan City, IN
Brown Mackie College – Moline, IL
Brown Mackie College – North Canton, OH
Brown Mackie College – Northern Kentucky, KY
Brown Mackie College – Orange County, CA
Brown Mackie College – Salina, KS
Brown Mackie College – San Diego, CA
Brown Mackie College – South Bend, IN
SOUTH UNIVERSITY
Columbia, SC
Montgomery, AL
Savannah, GA
West Palm Beach, FL

PROFILE
Education Management Corporation (www.edmc.com) is among the largest
providers of private post-secondary education in North America, based on student
enrollment and revenue. Student enrollment exceeded 66,000 as of fall 2004.
EDMC has 71 primary campus locations in 24 states and two Canadian provinces
that offer a broad range of academic programs concentrated in the media arts,
design, fashion, culinary arts, behavioral sciences, health sciences, education,
information technology, legal studies and business fields, culminating in the
award of associate’s through doctoral degrees. EDMC has provided career-focused
education for more than 40 years.
SHAREHOLDER INFORMATION
Corporate Offices
210 Sixth Avenue
33rd Floor
Pittsburgh, PA 15222-2603
Stock Registrar and Transfer Agent
For address changes, account
consolidation, registration changes,
lost certificates, and other shareholder
services, contact:
Mellon Investor Services
85 Challenger Road
Overpeck Centre
Ridgefield Park, NJ 07660-2104
1-800-756-3353
1-800-231-5469 (for speech and
hearing impaired)
Investor Relations
Education Management Corporation
James R. Sober
Vice President, Finance
210 Sixth Avenue
33rd Floor
Pittsburgh, PA 15222-2603
Phone: (412) 995-7684
Fax: (412) 562-0598
www.edmc.com
Registered Public Accountants
Ernst & Young LLP
2100 One PPG Place
Pittsburgh, PA 15222-5417
Legal Counsel
Kirkpatrick & Lockhart LLP
1500 Oliver Building
Pittsburgh, PA 15222-2312
Stock Prices and Dividends
The Company’s Common Stock is traded
on the Nasdaq National Market under the
symbol “EDMC.” The prices set forth here
reflect the high and low intra-day trading
sales prices for the Common Stock for
the periods indicated, as reported in the
consolidated transaction reporting system
of the Nasdaq National Market.
Stock Price Ranges Three Months Ended
Fiscal Year 2005 High Low
June 30, 2005 $34.50 $24.21
March 31, 2005 33.96 27.49
December 31, 2004 34.19 24.64
September 30, 2004 33.19 22.81
Fiscal Year 2004 High Low
June 30, 2004 $36.62 $30.02
March 31, 2004 35.00 28.43
December 31, 2003 34.99 27.28
September 30, 2003 32.12 26.38
Inquiries
Stockholders may contact Investor Relations
to obtain, without charge, a copy of Form
10-K, Form 10-Q, current reports on Form
8-K, and any amendments to these reports
filed or furnished pursuant to Section 13(a) or
15(d) of the Securities Exchange Act of 1934.
Design: BD& E, Pittsburgh, PA
Photography: Tom Gigliotti, ‘79 graduate of The Art Institute of Pittsburgh
Molly Deas photographed in West Elm, Portland, Oregon
Martin Zdanowicz photographed at Wormsloe State Historic Site, Savannah, Georgia
Copywriting: R. Todd Erkel
© 2005 by Education Management Corporation

Education That Builds Careers
210 Sixth Avenue
Pittsburgh, PA 15222-2603
www.edmc.com