Apollo Group, Inc. Reports Revenues and Earnings for the Second Quarter Fiscal 1999
Phoenix, Arizona, March 16, 1999 -- Apollo Group, Inc. (Nasdaq:APOL) today reported financial results for the second quarter of fiscal 1999 ended February 28, 1999.
Total revenues for the second quarter of fiscal 1999 increased by 28.0% to $110.7 million, compared with $86.5 million in the second quarter of fiscal 1998. Net income for the three months increased 31.4% to $10.2 million from $7.7 million for the same period last year, or to $.13 per share from $.10 per share.
Total revenues for the six months ended February 28, 1999 increased by 29.6% to $227.7 million, compared with $175.7 million for the same period last year. Net income for the six months increased 29.2% to $23.7 million, or $.30 per share, as compared to $18.3 million, or $.23 per share, reported for the same period last year.
Revenue growth in the second quarter resulted primarily from a 24.1% increase in consolidated average enrollments in degree-programs and tuition price increases averaging 4% to 6%. Average enrollments in degree-programs for the University of Phoenix (University of Phoenix), the Institute for Professional Development (IPD), and Western International University (WIU) increased over the prior year by 29.7%, 13.0%, and 5.5%, respectively. The Company had approximately 81,000 students enrolled in degree programs at February 28, 1999, compared to 65,700 students at February 28, 1998. The College for Financial Planning had approximately 24,200 non-degree students at February 28, 1999.
Dr. John G. Sperling, Chairman of the Board and CEO, said, "We are pleased to announce that we recently received state approval to open two new University of Phoenix campuses in Pennsylvania. Prior to 1997, Pennsylvania had a law in place that prohibited degree-granting for-profit education providers from offering degree programs in their state. The law was amended in 1997 and University of Phoenix is the first degree-granting for-profit educational institution to be granted state approval. Upon approval from our accrediting body, NCA, we plan to open a campus in Pittsburgh and a campus in Philadelphia."
Dr. Sperling continued, "University of Phoenix recently signed an articulation agreement with the Florida State Board of Community Colleges. This agreement defines how credits obtained at any one of Florida’s 28 community colleges can be applied toward a University of Phoenix degree in Florida. This agreement will benefit all types of students, particularly nurses who have an associates degree and, due to the nature of their schedules, have had a difficult time obtaining their bachelors degree through traditional means. University of Phoenix’s unique program will allow nurses to gain their degree more quickly and easily than attending a traditional university."
Dr. Sperling concluded, "During the second quarter of 1999, the Company opened a new IPD learning center in Hartford, CT and two new University of Phoenix learning centers in Arizona and California. In addition, our newest campus in Vancouver, Canada officially opened its doors and we are pleased with its enrollment growth to date. The Company plans to open several new campuses and learning centers in existing markets during the second half of 1999 and plans to expand its product offerings to address increased market demands."
Historically, student enrollments fluctuate throughout the year, with a "seasonal effect" occurring primarily during the second quarter. Second quarter (December to February) revenues and profits are typically lower than other quarters within the year due to student breaks during the Christmas and New Year holidays. The Company expects this second quarter seasonal trend to continue in the future.
Apollo Group, Inc., through its subsidiaries the
University of Phoenix, Inc., the Institute for Professional Development, the College for
Financial Planning Institutes Corporation, Western International University, Inc. and
Apollo Learning Group, Inc., is one of the largest providers of higher education programs
for working adults in the United States, with total degree-seeking enrollment of
approximately 81,000 students. Educational programs and services are currently offered at
126 campuses and learning centers in 34 states, Puerto Rico and Vancouver, Canada.
Apollo Group, Inc. and Subsidiaries Selected Financial and Operating Data
(Dollars in thousands, except per share amounts).
| Three Months Ended | Six Months Ended | ||||
| Feb.
28, 1999 |
Feb. 28, 1998 |
Feb.
28, 1999 |
Feb. 28, 1998 |
||
| (Unaudited) | (Unaudited) | ||||
| Net revenues: | |||||
| Tuition and other, net | $109,356 | $85,078 | $225,054 | $172,953 | |
| Interest income | 1,304 | 1,386 | 2,616 | 2,711 | |
| Total net revenues | 110,660 | 86,464 | 227,670 | 175,664 | |
| Costs and expenses: | |||||
| Instruction costs and services | 65,619 | 54,780 | 133,287 | 107,403 | |
| Selling and promotional | 18,517 | 10,770 | 36,449 | 21,336 | |
| General and administrative | 9,536 | 8,116 | 18,661 | 16,562 | |
| Total costs and expenses | 93,672 | 73,666 | 188,397 | 145,301 | |
| Income before income taxes | 16,988 | 12,798 | 39,273 | 30,363 | |
| Less provision for income taxes | 6,833 | 5,068 | 15,580 | 12,024 | |
| Net income | $10,155 | $7,730 | $23,693 | $18,339 | |
| Net income per share | $.13 | $.10 | $.30 | $.23 | |
| Weighted average shares | 79,195,000 | 79,035,000 | 79,177,000 | 78,862,000 | |
| OPERATING DATA: | Feb. 28, 1999 | Feb. 28, 1998 |
|||
| Students enrolled in degree programs | 81,000 | 65,700 | |||
| Number of locations | 126 | 111 | |||
This press release includes statements which may constitute forward-looking statements made pursuant to the safe harbor 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.