Argosy Education Group Announces Record Revenues and Earnings in Third Quarter and Nine Months.CHICAGO--(BUSINESS WIRE)--July 9, 1999-- Argosy Education Group, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ARGY), the nation's largest for-profit for-prof·it adj. Established or operated with the intention of making a profit: a for-profit organization. provider of doctoral level programs, announced today that revenues and net income in the third quarter and first nine months of fiscal 1999 were at record highs. Revenues for the quarter ended May 31, 1999 were $10.7 million, up 22 percent from $8.8 million in the third quarter of 1998. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income in the current quarter increased 126 percent to $1.8 million, or 27 cents per basic and 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, from $800,000, or 16 cents per basic and diluted share a year ago. The third quarter 1999 revenues and net income are Argosy's best ever for a single quarter. Pro forma net income excludes deferred income tax charges related to the termination of an S-Corporation. Per-share data reflects the increased number of shares outstanding in 1999 as a result of Argosy's initial public offering earlier this year. For the first nine months, revenues of $29.1 million were 28 percent higher than the $22.7 million recorded in the comparable 1998 period. Pro forma net income for the period increased 46 percent to $4.5 million, or 81 cents per basic and diluted share, from $3.1 million, or 63 cents per basic and diluted share, last year. "Argosy's performance thus far in 1999 has exceeded our expectations, with both existing schools and recent acquisitions contributing to our positive momentum," said Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. C. Markovitz, Ph.D., chairman of the board of directors. "Revenue from schools we owned during fiscal 1998 is up 15 percent this year, with strong growth at the Hawaii Hawaii, island, United States Hawaii, island (1990 pop. 120,217), 4,037 sq mi (10,456 sq km), largest and southernmost island of the state of Hawaii and coextensive with Hawaii co.; known as the Big Island. , Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). 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). campuses of the American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Schools of Professional Psychology. "Our most recent acquisitions, the Medical Institute of Minnesota Minnesota, state, United States Minnesota (mĭn'ĭsō`tə), upper midwestern state of the United States. It is bordered by Lake Superior and Wisconsin (E), Iowa (S), South Dakota and North Dakota (W), and the Canadian provinces (MIM MIM Metal Injection Molding MIM Mendelian Inheritance in Man MIM Mobile Instant-Messaging MIM Man in the Middle MIM Multilateral Initiative on Malaria MIM Metal-Insulator-Metal MIM Master of International Management MIM Made in Mexico ) and PrimeTech Institute (acquired in February 1998 and December 1998, respectively), contributed significantly to our revenue growth in 1999," Dr. Markovitz said. "MIM also realized substantial margin improvement through rigorous expense control and increased use of corporate support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services in areas such as marketing, information systems, accounting and financial aid administration." Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. decreased slightly in the quarter but were up in the nine months ended May 31, 1999. "As a percent of revenues, however, operating expenses are down in both the quarter and the nine month period," Dr. Markovitz said. "Prospects for continued improvement in revenues and earnings are favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. . Argosy has achieved year-over-year revenue growth in every quarter since we first opened our doors in 1976. We fully expect that our investments in student recruitment and retention, along with sharp increases in student populations at new and recently-opened campuses, will enable us to maintain that record," he said. Argosy Education Group, Inc. provides academically-oriented, practitioner-focused educational programs. The company is accredited accredited recognition by an appropriate authority that the performance of a particular institution has satisfied a prestated set of criteria. accredited herds cattle herds which have achieved a low level of reactors to, e.g. to offer doctoral and master's degrees master's degree n. An academic degree conferred by a college or university upon those who complete at least one year of prescribed study beyond the bachelor's degree. Noun 1. in psychology, education and business; bachelor's degrees in business; associate degrees in allied health professions; and diplomas in information technology. Argosy owns and operates four school groups - the American Schools of Professional Psychology, the University of Sarasota, the Medical Institute of Minnesota and PrimeTech Institute - which together have 16 campuses in eight states and Ontario, Canada. Total current student enrollment is approximately 4,500. In addition, Argosy's Ventura Group is a leading provider of preparatory pre·par·a·to·ry adj. 1. Serving to make ready or prepare; introductory. See Synonyms at preliminary. 2. Relating to or engaged in study or training that serves as preparation for advanced education: courses and materials for licensure licensure (lī´s  nsh examinations in psychology, counseling and related fields.
The statements herein which are not historical facts, including statements about future expectations, are "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. " that are based on various assumptions. Certain risks and uncertainties could cause actual future results to differ materially from those stated. These risks are spelled out more fully in the company's SEC filings. The company assumes no obligation to update its forward-looking statements.
ARGOSY EDUCATION GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
May 31, May 31,
------- -------
1999 1998 1999 1998
---- ---- ---- ----
Revenues:
Tuition and fees, net $ 9,887 $ 7,902 $26,586 $22,192
Other, net 808 869 2,529 550
-------- -------- -------- ---------
Total net revenues 10,695 8,771 29,115 22,742
-------- -------- -------- ---------
Operating Expenses:
Cost of education 4,838 4,207 13,593 10,692
Selling expenses 307 340 1,086 691
General and administrative
expenses 2,607 2,374 8,103 6,290
Related party general and
administrative expenses 13 961 668 1,807
-------- -------- -------- ---------
Total operating expenses 7,765 7,882 23,450 19,480
-------- -------- -------- ---------
Income from Operations 2,930 889 5,665 3,262
Other income (expense):
Interest income 244 99 557 296
Interest expense (181) (168) (504) (435)
-------- -------- -------- ---------
Total other income
(expense), net 63 (69) 53 (139)
-------- -------- -------- ---------
Income before provision
for income taxes 2,993 820 5,718 3,123
Income Taxes
Income tax provision
on C corporation income
subsequent to
March 8, 1999 1,182 - 1,182 -
Income tax provision on S
corporation income
prior to March 8, 1999 - 20 62 53
Deferred income taxes
recorded in conjunction with
termination of S corporation
election on March 7, 1999 (764) - (764) -
-------- -------- -------- ---------
Total income taxes 418 20 480 53
-------- -------- -------- ---------
Net income $ 2,575 $ 800 $ 5,238 $ 3,070
======== ======== ======== =========
Net income per share:
Basic and diluted $ 0.38 $ 0.16 $ 0.95 $ 0.63
======== ======== ======== =========
Pro forma income data (unaudited):
Net Income $ 2,575 $ 800 $ 5,238 $ 3,070
Pro forma adjustment to
recognize C corporation
provision for income
taxes (764) - (764) -
-------- -------- -------- ---------
Pro forma net income $ 1,811 $ 800 $ 4,474 $ 3,070
======== ======== ======== =========
Pro forma net income per share:
Basic and diluted $ .27 $ .16 $ .81 $ .63
======== ======== ======== =========
Weighted average shares
outstanding:
Basic and diluted 6,748 4,900 5,523 4,900
======== ======== ======== =========
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