Edison Schools turns profit for first time
Edison Schools, Inc., the for-profit company that runs a number of Philadelphia-area public schools, posted the first quarterly net profit in its history.
The company, which manages 20 of the city's lowest performing schools, made more than $10 million over the last three months.
According to its Web site, the profit was made by selling "a non-income producing property in Harlem," amongst other things.
Besides the Harlem school, Edison has closed other schools across the country and has renegotiated a number of contracts to maximize profit, Edison's Vice President for Communications Adam Tucker said.
He added that "significantly reduced costs at the headquarters level" also contributed to the financial upswing.
While this quarter was the first time in Edison's 11-year history that it has been in the black, its income has been steadily rising in recent years.
"We've seen a pretty dramatic turnaround from last year," Tucker said. "But we've been making steady progress towards [the black] for some time."
Despite the continually poor performance of Philadelphia's Edison-run schools since they came under the company's control last year, Edison does not plan to give them priority in receiving funding from the new profits.
"All of our schools are of equal priority," Tucker said. "We're in our second year in Philly now, and we're beginning to see the results of the hard work" of the principals and faculty.
Despite this quarter's strong performance, Edison lost $25 million over the course of the year.
Tucker said that if Edison continues to be profitable, it will distribute the extra money according to its business plan; some will be used to pay investors, and the rest will be "reinvested in our schools and organization."
Edison managed to stay in business through loans, including a $40 million infusion last June, and large government grants
--Josh Gordon
