Apollo Group Inc. Reports Fiscal 2002 Fourth Quarter and Year End Results.Business Editors PHOENIX--(BUSINESS WIRE)--Oct. 8, 2002 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 fiscal 2002 financial results for Apollo Apollo (əpŏl`ō), in Greek religion and mythology, one of the most important Olympian gods, concerned especially with prophecy, medicine, music and poetry, archery, and various bucolic arts, particularly the care of flocks and herds. 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 fourth quarter and year ended Aug. 31, 2002. Net income attributed to Apollo Education Group for the year ended Aug. 31, 2002 was $153.2 million, or $.87 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 $104.5 million, or $.60 per diluted share, reported for the same period last year. Net income attributed to University of Phoenix Online for the year ended Aug. 31, 2002 was $8.0 million, or $.53 per diluted share, compared to $3.3 million or $.24 per diluted share, reported for the same period last year. Net income attributed to Apollo Education Group for the three months ended Aug. 31, 2002 was $46.6 million, or $.26 per diluted share, compared to $30.2 million, or $.17 per diluted share, reported for the same period last year. Net income attributed to University of Phoenix Online for the three months ended Aug. 31, 2002, was $2.7 million, or $.18 per diluted share, compared to $1.1 million or $.08 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 to report another strong quarter in both enrollment and earnings. During the fourth quarter we opened campuses in two new states: Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. and Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). . These additions bring our total on-campus on-campus adjective Referring to an on-site site of a medical complex with multiple buildings. Cf 'Off campus.'. locations for University of Phoenix to 40." Total consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: revenues for Apollo Group Inc. for the year ended Aug. 31, 2002 rose 31.2% to $1.0 billion, compared with $769.5 million for the same period last year. The University of Phoenix accounted for 93.7% of the $951.9 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 year ended Aug. 31, 2002. Total revenues for University of Phoenix Online for the year ended Aug. 31, 2002 rose 81.4% to $327.5 million, compared with $180.5 million for the same period last year. Total consolidated revenues for Apollo Group Inc. for the three months ended Aug. 31, 2002 rose 31.2% to $282.3 million, compared with $215.1 million in the fourth quarter of fiscal 2001. The University of Phoenix accounted for 94.1% of the $263.9 million in net tuition revenues from students enrolled in degree programs for the quarter ended Aug. 31, 2002. Total revenues for University of Phoenix Online for the three months ended Aug. 31, 2002 rose 77.7% to $99.9 million, compared with $56.2 million in the fourth quarter of fiscal 2001. Consolidated net income for Apollo Group Inc. for the year ended Aug. 31, 2002 increased 49.5% to $161.2 million, compared to $107.8 million for the same period last year. Net income for University of Phoenix Online for the year ended Aug. 31, 2002 increased 102.7% to $64.4 million, compared to $31.8 million for the same period last year. Consolidated net income for Apollo Group Inc. for the three months ended Aug. 31, 2002 increased 57.8% to $49.3 million, compared to $31.3 million for the same period last year. Net income for University of Phoenix Online for the three months ended Aug. 31, 2002 increased 121.8% to $21.1 million, compared to $9.5 million for the same period last year. Consolidated degree enrollments for all of the Apollo Group Inc. institutions at Aug. 31, 2002 increased by 26.4% to 157,800 students compared to 124,800 students at Aug. 31, 2001. Degree enrollments at The University of Phoenix (excluding University of Phoenix Online) were 84,300 students at Aug. 31, 2002 compared to 74,200 students at Aug. 31, 2001 representing a 13.6% increase. Degree enrollments for University of Phoenix Online at Aug. 31, 2002 increased by 70.2% to 49,400 students compared to 29,000 students at Aug. 31, 2001. Business Outlook Apollo Group Inc. -- We expect revenue for the quarter ending Nov. 30, 2002 to be between $290 million and $292 million and to be between $1.290 billion and $1.295 billion for fiscal 2003. -- Operating margin is expected to be between 23.0% and 23.5% for the quarter ending Nov. 30, 2002 and to be between 25.0% and 25.5% for fiscal 2003. University of Phoenix Online -- We expect revenue for the quarter ending Nov. 30, 2002 to be between $100 million and $101 million and to be between $500 million and $505 million for fiscal 2003. -- Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: is expected to be between 27.0% and 27.5% for the quarter ending Nov. 30, 2002 and to be between 31.5% and 32.0% for fiscal 2003. 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 $0.23 for the quarter ending Nov. 30, 2002 and to be $1.08 for fiscal 2003. Diluted earnings per share attributed to University of Phoenix Online are expected to be $0.13 for the quarter ending Nov. 30, 2002 and to be $0.76 for fiscal 2003. These diluted earnings per share numbers for the quarter ending Nov. 30, 2002 are consistent with the current First Call consensus estimates. Based on 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 first quarter of fiscal 2003. 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 first quarter of fiscal 2003. 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 65 campuses and 111 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 Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , 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 157,800 students as of Aug. 31, 2002. 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 See .edu. (networking) edu - ("education") The top-level domain for educational establishments in the USA (and some other countries). E.g. "mit.edu". The UK equivalent is "ac.uk". . 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 reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. 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
Aug. 31,
2002 2001
Revenues:
Tuition and other, net $ 282,309 $ 215,116
Costs and expenses:
Instructional costs and services 133,152 112,741
Selling and promotional 56,038 46,185
General and administrative 15,013 10,767
204,203 169,693
Income from operations 78,106 45,423
Interest income, net 3,225 3,522
Income before income taxes 81,331 48,945
Provision for income taxes 32,032 17,694
Net income $ 49,299 $ 31,251
Net income attributed to:
Apollo Education Group common stock $ 46,562 $ 30,155
University of Phoenix Online common stock $ 2,737 $ 1,096
Earnings per share attributed to:
Apollo Education Group common stock:
Diluted net income per share $ 0.26 $ 0.17
Diluted weighted average shares outstanding 176,401 174,810
University of Phoenix Online common stock:
Diluted net income per share $ 0.18 $ 0.08
Diluted weighted average shares outstanding 15,608 14,455
For the Year Ended
Aug. 31,
2002 2001
Revenues:
Tuition and other, net $ 1,009,455 $ 769,474
Costs and expenses:
Instructional costs and services 498,454 410,084
Selling and promotional 198,889 150,311
General and administrative 58,260 48,076
755,603 608,471
Income from operations 253,852 161,003
Interest income, net 12,072 14,106
Income before income taxes 265,924 175,109
Provision for income taxes 104,774 67,292
Net income $ 161,150 $ 107,817
Net income attributed to:
Apollo Education Group common stock $ 153,161 $ 104,513
University of Phoenix Online common stock $ 7,989 $ 3,304
Earnings per share attributed to:
Apollo Education Group common stock:
Diluted net income per share $ 0.87 $ 0.60
Diluted weighted average shares outstanding 175,697 174,001
University of Phoenix Online common stock:
Diluted net income per share $ 0.53 $ 0.24
Diluted weighted average shares outstanding 15,098 13,657
At Aug. 31,
2002 2001
OPERATING DATA
Students enrolled in degree programs 157,800 124,800
Number of locations:
Campuses 65 58
Learning Centers 111 102
176 160
APOLLO GROUP INC. AND SUBSIDIARIES
DEGREE ENROLLMENTS
Aug. 31,
2002 2001
University of Phoenix:
Campuses established prior to August 1997 112,893 89,202
Campuses established after August 1997 20,767 14,043
Total University of Phoenix 133,660 103,245
Institute for Professional Development 21,724 19,889
Western International University 1,822 1,487
College for Financial Planning 556 196
Total Degree Enrollment 157,762 124,817
UNIVERSITY OF PHOENIX ONLINE
SELECTED FINANCIAL DATA
(in thousands)
For the Three For the Year
Months Ended Ended
Aug. 31, Aug. 31,
2002 2001 2002 2001
Revenues:
Tuition and other,
net $ 99,938 $ 56,244 $ 327,483 $ 180,527
Costs and expenses:
Instructional costs and
services 38,578 23,211 132,044 75,327
Selling and promotional 21,991 16,176 73,755 45,946
General and administrative 5,220 2,681 17,932 10,554
65,789 42,068 223,731 131,827
Income from operations 34,149 14,176 103,752 48,700
Interest income, net 813 917 3,126 3,629
Income before income taxes 34,962 15,093 106,878 52,329
Provision for income taxes 13,897 5,594 42,484 20,566
Net income $ 21,065 $ 9,499 $ 64,394 $ 31,763
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. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion