FAR EASTERN University, Inc. (FEU) and Technological Institute of the Philippines (T.I.P.) are forming a new company to run a senior high school that will prepare students for work at industrial parks.
In a disclosure, FEU said its board of trustees approved the proposal to create a new corporation that will be jointly owned by T.I.P. “for the purpose of establishing and operating a school which shall offer, among others, a senior high school program.”
The listed company said the joint venture aims to establish “a work-ready Senior High School to be located within or near Technology Industrial Parks and to serve the personnel needs of Locators.”
With the deal, the FEU said it expects to expand its operations and provide skilled workers for locators of industrial parks.
“The School is targeted to start June 2020 upon approval of regulators, like DepEd (Department of Education), SEC (Securities and Exchange Commission) and others with respect to operational permits,” FEU said.
For its third quarter ending Feb. 28, FEU reported a net loss attributable to the owners of the parent company of P69.62 million versus a profit of P161.7 million a year ago. Nine-month attributable net income dipped 1.2% to P384.63 million. FEU’s fiscal year starts on June 1 and ends on May 31.
The group’s operating income surged to P436.04 million for the nine-month period, from P59.7 million a year ago. Revenues went up 27% to P2.3 billion, with the return of freshman enrollees in tertiary schools.
However, operating expenses jumped 29% to P1.9 billion due to a non-recurring local tax expense worth P209.28 million as well as increased student population and the start of FEU-Alabang’s operations.
“With the improvement in tertiary freshmen enrollment, resulting to a 40,000-first semester student population of the FEU system, completion of various facilities construction and improvements, and a continuous effort to attain operational cost efficiency, the Group is confident that it will maintain steady operations and meet its budget for the year,” the listed company said in its regulatory filing.
Aside from its Manila campus, FEU operates campuses in Diliman, Quezon City; Cavite; and Alabang, Muntinlupa. It also operates Roosevelt College, Inc.