Apollo Group Inc. Reports Fiscal 2003 Second Quarter Results.Business Editors PHOENIX--(BUSINESS WIRE)--March 25, 2003 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 2003 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 second quarter ended Feb. 28, 2003. Net income attributed to Apollo Education Group for the three months ended Feb. 28, 2003 was $42.6 million, or $.24 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 $26.6 million, or $.15 per diluted share, reported for the same period last year. Net income attributed to University of Phoenix Online for the three months ended Feb. 28, 2003, was $3.1 million, or $.19 per diluted share, compared to $1.5 million or $.10 per diluted share, reported for the same period last year. Net income attributed to Apollo Education Group for the six months ended Feb. 28, 2003 was $96.4 million, or $.54 per diluted share, compared to $58.2 million, or $.33 per diluted share, reported for the same period last year. Net income attributed to University of Phoenix Online for the six months ended Feb. 28, 2003, was $6.0 million, or $.37 per diluted share, compared to $2.8 million or $.19 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 that both our online and core businesses again exceeded our expectations this quarter resulting in another strong financial and enrollment performance for Apollo Education Group and University of Phoenix Online. During the second quarter, the University of Phoenix opened new campuses in Wichita Wichita, indigenous people of North America Wichita (wĭch`ĭtô), Native North Americans whose language belongs to the Caddoan branch of the Hokan-Siouan linguistic stock (see Native American languages). , Kan Kan, river, China: see Gan. . and Cincinnati, Ohio “Cincinnati” redirects here. For other uses, see Cincinnati (disambiguation). Cincinnati is a city in the U.S. state of Ohio and the county seat of Hamilton County. . We also received state licensure licensure (lī´s  nsh in
North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N).
Facts and FiguresArea, 52,586 sq mi (136,198 sq km). Pop. . We plan to open our first campus in Charlotte. We look forward to the opportunity to offer quality, affordable 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. to the adult market in North Carolina." Total consolidated revenues for Apollo Group Inc. for the three months ended Feb. 28, 2003 rose 32.6% to $295.2 million, compared with $222.6 million in the second quarter of fiscal 2002. The University of Phoenix accounted for 94.6% of the $277.3 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 Feb. 28, 2003. Total revenues for University of Phoenix Online for the three months ended Feb. 28, 2003 rose 62.1% to $117.0 million, compared with $72.2 million in the second quarter of fiscal 2002. Total consolidated revenues for Apollo Group Inc. for the six months ended Feb. 28, 2003 rose 34.0% to $604.1 million, compared with $450.8 million in the same period last year. The University of Phoenix accounted for 94.2% of the $568.7 million in net tuition revenues from students enrolled in degree programs for the six months ended Feb. 28, 2003. Total revenues for University of Phoenix Online for the six months ended Feb. 28, 2003 rose 66.4% to $227.2 million, compared with $136.5 million in the same period last year. Consolidated net income for Apollo Group Inc. for the three months ended Feb. 28, 2003 increased 62.6% to $45.7 million, compared to $28.1 million for the same period last year. Net income for University of Phoenix Online for the three months ended Feb. 28, 2003 increased 75.9% to $22.4 million, compared to $12.7 million for the same period last year. Consolidated net income for Apollo Group Inc. for the six months ended Feb. 28, 2003 increased 67.7% to $102.4 million, compared to $61.1 million for the same period last year. Net income for University of Phoenix Online for the six months ended Feb. 28, 2003 increased 87.4% to $44.3 million, compared to $23.7 million for the same period last year. Consolidated degree enrollments for all of the Apollo Group Inc. institutions at Feb. 28, 2003 increased by 26.9% to 176,700 students compared to 139,300 students at Feb. 28, 2002. Degree enrollments at The University of Phoenix (excluding University of Phoenix Online) were 89,300 students at Feb. 28, 2003 compared to 78,700 students at Feb. 28, 2002 representing a 13.5% increase. Degree enrollments for University of Phoenix Online at Feb. 28, 2003 increased by 67.8% to 63,000 students compared to 37,600 students at Feb. 28, 2002. Business Outlook Apollo Group Inc. -- We expect revenue for the quarter ending May 31, 2003 to be between $357 million and $359 million and to be between $1.327 billion and $1.331 billion for fiscal 2003. -- Operating margin is expected to be between 29.5% and 30.0% for the quarter ending May 31, 2003 and to be between 27.5% and 28.0% for fiscal 2003. University of Phoenix Online -- We expect revenue for the quarter ending May 31, 2003 to be between $144 million and $145 million and to be between $525 million and $527 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 35.0% and 35.5% for the quarter ending May 31, 2003 and to be between 33.0% and 33.5% 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 $.35 for the quarter ending May 31, 2003 and to be $1.21 for fiscal 2003. Diluted earnings per share attributed to University of Phoenix Online are expected to be $.25 for the quarter ending May 31, 2003 and to be $.87 for fiscal 2003. 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 third 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 third quarter of fiscal 2003. Apollo Group Inc. has been providing higher education 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 66 campuses and 117 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 176,700 students as of Feb. 28, 2003. 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, 2002; 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 For the Six
Months Ended Months Ended
Feb. 28, Feb. 28,
2003 2002 2003 2002
-------------------- -------------------
Revenues:
Tuition and other, net $295,181 $222,618 $604,078 $450,797
---------- --------- --------- ---------
Costs and expenses:
Instructional costs and
services 143,249 118,778 285,352 235,538
Selling and promotional 64,485 46,886 124,811 92,305
General and administrative 16,702 13,333 32,849 27,987
---------- --------- --------- ---------
224,436 178,997 443,012 355,830
---------- --------- --------- ---------
Income from operations 70,745 43,621 161,066 94,967
Interest income, net 3,509 2,736 7,043 5,779
---------- --------- --------- ---------
Income before income taxes 74,254 46,357 168,109 100,746
Provision for income taxes 28,568 18,264 65,734 39,694
---------- --------- --------- ---------
Net income $45,686 $28,093 $102,375 $61,052
========== ========= ========= =========
Net income attributed to:
Apollo Education Group common
stock $42,607 $26,562 $96,377 $58,230
========== ========= ========= =========
University of Phoenix Online
common stock $3,079 $1,531 $5,998 $2,822
========== ========= ========= =========
Earnings per share attributed
to:
Apollo Education Group common
stock:
Diluted net income per share $0.24 $0.15 $0.54 $0.33
========== ========= ========= =========
Diluted weighted average
shares outstanding 177,309 175,425 177,096 175,173
========== ========= ========= =========
University of Phoenix Online
common stock:
Diluted net income per share $0.19 $0.10 $0.37 $0.19
========== ========= ========= =========
Diluted weighted average
shares outstanding 16,395 14,909 16,190 14,746
========== ========= ========= =========
At Feb. 28,
2003 2002
--------------------
OPERATING DATA
Students enrolled in degree
programs 176,700 139,300
Number of locations:
Campuses 66 62
Learning Centers 117 110
---------- ---------
183 172
========== =========
APOLLO GROUP INC. AND SUBSIDIARIES
DEGREE ENROLLMENTS
Feb. 28,
2003 2002
------------------
University of Phoenix:
Campuses established prior to February 1998 132,540 103,658
Campuses established after February 1998 19,838 12,642
--------- --------
Total University of Phoenix 152,378 116,300
--------- --------
Institute for Professional Development 21,672 20,793
Western International University 1,986 1,718
College for Financial Planning 619 439
--------- --------
Total Degree Enrollment 176,655 139,250
========= ========
UNIVERSITY OF PHOENIX ONLINE
SELECTED FINANCIAL DATA
(in thousands)
For the Three For the Six
Months Ended Months Ended
Feb. 28, Feb. 28,
2003 2002 2003 2002
-------------------- -------------------
Revenues:
Tuition and other, net $116,976 $72,157 $227,167 $136,497
---------- --------- --------- ---------
Costs and expenses:
Instructional costs and
services 47,608 30,570 90,559 58,118
Selling and promotional 27,055 16,991 53,280 32,631
General and administrative 6,171 4,206 11,678 8,037
---------- --------- --------- ---------
80,834 51,767 155,517 98,786
---------- --------- --------- ---------
Income from operations 36,142 20,390 71,650 37,711
Interest income, net 998 711 2,020 1,561
---------- --------- --------- ---------
Income before income taxes 37,140 21,101 73,670 39,272
Provision for income taxes 14,782 8,388 29,321 15,611
---------- --------- --------- ---------
Net income $22,358 $12,713 $44,349 $23,661
========== ========= ========= =========
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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