Apollo Group Inc. Reports Fiscal 2002 First Quarter Results.Business Editors PHOENIX--(BUSINESS WIRE)--Dec. 18, 2001 Apollo Group Apollo Group, Inc. NASDAQ: APOL is an S&P 500 corporation based in Phoenix, Arizona. Apollo Group, Inc., through its subsidiaries, provides higher education to working adults. , Inc. today reported financial results for Apollo Education Group (Nasdaq:APOL APOL Asia Pacific Online APOL Alternate Person on Line ) and University of Phoenix Online (Nasdaq:UOPX UOPX University of Phoenix ) for the first quarter of fiscal 2002 ended Nov. 30, 2001. Net income attributed to Apollo Education Group for the three months ended Nov. 30, 2001 was $31.7 million, or $.27 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $24.4 million, or $.21 per diluted share, reported for the same period last year. Net income attributed to University of Phoenix Online for the three months ended Nov. 30, 2001, was $1.3 million, or $.12 per diluted share, compared to $0.4 million or $.04 per diluted share, reported for the same period last year. Todd S Todd , Sir Alexander Robertus 1907-1997. British chemist. He won a 1957 Nobel Prize for his study of nucleic acids and nucleotide structures. . Nelson, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said, "We are pleased with our strong performance during the first quarter of fiscal 2002. During the first quarter, the University of Phoenix opened a new campus in Boise, Idaho “Boise” redirects here. For other uses, see Boise (disambiguation). Boise is the capital and most populous city of the U.S. state of Idaho. It is the county seat of Ada County and the principal city of the Boise metropolitan area. and two new learning centers; Cypress Cypress, city, United States Cypress (sī`prəs), city (1990 pop. 42,655), Orange co., S Calif. near Long Beach; inc. 1956. Forest Lawn–Cypress, a branch of the famous cemetery in Glendale, Calif. Creek in Ft. Lauderdale, Fla. and Executive Towers in Colorado Springs Colorado Springs, city (1990 pop. 281,140), seat of El Paso co., central Colo., on Monument and Fountain creeks, at the foot of Pikes Peak; inc. 1886. It is a year-round resort and a booming military, technological, and commercial city. , Colo. "Additionally, the Institute for Professional Development entered into a new contract with Hope International University in Fullerton, Calif." Nelson continued, "We are also pleased that the Apollo Group has been added to the Nasdaq-100 Index(R), which was effective at the beginning of trading on Dec. 17, 2001." Total consolidated revenues for Apollo Group Inc. for the three months ended Nov. 30, 2001 rose 28.9% to $228.2 million, compared with $177.1 million in the first quarter of fiscal 2001. The University of Phoenix accounted for 93.1% of the $215.6 million in net tuition For tuition fees in the United Kingdom, see . Tuition means instruction, teaching or a fee charged for educational instruction especially at a formal institution of learning or by a private tutor usually in the form of one-to-one tuition. revenues from students enrolled in degree programs for the quarter ended Nov. 30, 2001. Total revenues for University of Phoenix Online for the three months ended Nov. 30, 2001 rose 88.8% to $64.3 million, compared with $34.1 million in the first quarter of fiscal 2001. Consolidated net income for Apollo Group Inc. for the three months ended Nov. 30, 2001 increased 32.7% to $33.0 million, compared to $24.8 million for the same period last year. Net income for University of Phoenix Online for the three months ended Nov. 30, 2001 increased 96.3% to $10.9 million, compared to $5.6 million for the same period last year. Consolidated degree enrollments for all of the Apollo Group Inc. institutions at Nov. 30, 2001 increased by 23.7% to 129,200 students compared to 104,400 students at Nov. 30, 2000. Degree enrollments at The University of Phoenix (excluding University of Phoenix Online) were 74,200 students at Nov. 30, 2001 compared to 65,500 students at Nov. 30, 2000 representing a 13.3% increase. Degree enrollments for University of Phoenix Online at Nov. 30, 2001 increased by 81.7% to 33,700 students compared to 18,500 students at Nov. 30, 2000. Business Outlook Apollo Group Inc. -- We expect revenue for the quarter ending Feb. 28, 2002 to be between $211 million and $213 million and to be between $963 million and $966 million for fiscal 2002. -- Operating margin is expected to be between 15.0% and 15.5% for the quarter ended Feb. 28, 2002 and to be between 21.0% and 21.5% for fiscal 2002. University of Phoenix Online -- We expect revenue for the quarter ending Feb. 28, 2002 to be between $62 million and $63 million and to be between $291 million and $292 million for fiscal 2002. -- Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: is expected to be between 23.0% and 23.5% for the quarter ended Feb. 28, 2002 and to be between 26.5% and 27.0% for fiscal 2002. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of attributed to Apollo Education Group are expected to be $0.18 for the quarter ending Feb. 28, 2002 and to be $1.10 for fiscal 2002. Diluted earnings per share attributed to University of Phoenix Online are expected to be $0.10 for the quarter ending Feb. 28, 2002 and to be $0.52 for fiscal 2002. Based on the lead flow, we expect degree enrollments at The University of Phoenix (excluding University of Phoenix Online) to continue to grow between 12% and 14% over the prior year at the end of the second quarter of fiscal 2002. We expect University of Phoenix Online degree enrollments to continue to grow in excess of 50% over the prior year at the end of the second quarter of fiscal 2002. Apollo Group Inc. has been providing higher education higher education Study beyond the level of secondary education. Institutions of higher education include not only colleges and universities but also professional schools in such fields as law, theology, medicine, business, music, and art. programs to working adults for over 25 years. Apollo Group Inc., operates through its subsidiaries The University of Phoenix Inc., Institute for Professional Development, The College for Financial Planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against Institutes Corp., and Western International University Inc. The consolidated enrollment in its educational programs makes it the largest private institution of higher education in the United States Higher education in the United States refers to colleges and universities within the United States. Overview The American university system, like the American educational system in general, is highly decentralized because the U.S. . It offers educational programs and services at 60 campuses and 104 learning centers in 37 states, Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. and Vancouver, British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography . Combined degree enrollment was 129,200 students as of Nov. 30, 2001. For more information about Apollo Group Inc. and its subsidiaries, call 800/990-APOL or visit Apollo on the World Wide Web at http://www.apollogrp.edu. This press release includes statements that constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 (the "Reform Act"). Apollo Group, Inc. claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act. These forward-looking statements are often characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by the terms "may," "believes," "projects," "expects," or "anticipates," and do not reflect historical facts. Specific forward-looking statements contained in this press release relate, among other matters, to the business outlook of Apollo Group Inc. Forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of Apollo Group Inc. to be materially different from those expressed or implied by such forward-looking statements. Factors that could affect Apollo Group Inc.'s results and cause them to materially differ from those contained in the forward-looking statements include: -- the failure to maintain or renew required regulatory approvals, accreditation accreditation, n a process of formal recognition of a school or institution attesting to the required ability and performance in an area of education, training, or practice. or state authorizations; -- the failure to obtain authorizations from states in which University of Phoenix does not currently provide degree programs; -- the failure to obtain the Higher Learning higher learning n. Education or academic accomplishment at the college or university level. Commission's approval for University of Phoenix to operate in new states; -- any adverse changes in student enrollment; -- risk factors and cautionary statements made in Apollo Group Inc.'s Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the period ended Aug. 31, 2001; and -- other factors that Apollo Group is currently unable to identify or quantify Quantify - A performance analysis tool from Pure Software. , but may arise or become known in the future. These forward-looking statements are based on estimates, projections, beliefs, and assumptions of us and our management and speak only as of the date made and are not guarantees of future performance. We undertake no obligation to publicly update or revise any forward-looking statements, or any facts, events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" that may bear upon forward-looking statements. You are advised, however, to consult any further disclosures we make in our reports filed with the Securities and Exchange Commission.
APOLLO GROUP INC. AND SUBSIDIARIES
SELECTED FINANCIAL AND OPERATING DATA
(Dollars in thousands, except per share amounts)
For the Three Months Ended
November 30,
2001 2000
Revenues:
Tuition and other, net $ 228,179 $ 177,073
Costs and expenses:
Instructional costs and services 116,760 95,235
Selling and promotional 45,419 31,008
General and administrative 14,654 11,986
176,833 138,229
Income from operations 51,346 38,844
Interest income, net 3,043 3,168
Income before income taxes 54,389 42,012
Provision for income taxes 21,430 17,183
Net income $ 32,959 $ 24,829
Net income attributed to:
Apollo Education Group Common Stock $ 31,668 $ 24,439
University of Phoenix Online
Common Stock $ 1,291 $ 390
Earnings per share attributed to:
Apollo Education Group Common Stock:
Diluted net income per share $ 0.27 $ 0.21
Diluted weighted average shares
outstanding 116,604 115,209
University of Phoenix Online
Common Stock Group:
Diluted net income per share $ 0.12 $ 0.04
Diluted weighted average shares
outstanding 10,936 9,720
At November 30,
2001 2000
OPERATING DATA
Students enrolled in degree programs 129,200 104,400
Number of locations:
Campuses 60 55
Learning Centers 104 98
164 153
APOLLO GROUP INC. AND SUBSIDIARIES
DEGREE ENROLLMENTS
November 31,
2001 2000
University of Phoenix:
Campuses established prior to November 1996 92,472 73,447
Campuses established after November 1996 15,370 10,532
Total University of Phoenix 107,842 83,979
Institute for Professional Development 19,678 18,906
Western International University 1,456 1,382
College for Financial Planning 236 156
Total Degree Enrollment 129,212 104,423
UNIVERSITY OF PHOENIX ONLINE
SELECTED FINANCIAL DATA
(in thousands)
For the Three Months Ended
November 30,
2001 2000
Revenues:
Tuition and other, net $ 64,340 $ 34,087
Costs and expenses:
Instructional costs and services 27,548 15,646
Selling and promotional 15,640 7,602
General and administrative 3,831 2,099
47,019 25,347
Income from operations 17,321 8,740
Interest income, net 850 694
Income before income taxes 18,171 9,434
Provision for income taxes 7,223 3,858
Net income $ 10,948 $ 5,576
This press release includes statements which may constitute forward-looking statements made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provision of the Private Securities Litigation Reform Act of 1995. This information may involve risk and uncertainties that could cause actual results to differ materially from the forward-looking statements. |
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