Apollo Group, Inc. Reports Revenues and Earnings for Third Quarter and Nine Months ended May 31, 1999
Phoenix, Arizona, June 22, 1999 -- Apollo Group, Inc. (Nasdaq:APOL) today reported financial results for the third quarter of fiscal 1999 ended May 31, 1999.
Total revenues for the third quarter of fiscal 1999 increased by 30.6% to $139.5 million, compared with $106.8 million in the third quarter of fiscal 1998. Net income for the three months increased 22.1% to $19.0 million from $15.5 million for the same period last year, or to $.24 per share from $.20 per share.
Total revenues for the nine months ended May 31, 1999 increased by 30.0% to $367.1 million, compared with $282.4 million for the same period last year. Net income for the nine months increased 26.0% to $42.7 million, or $.54 per share, as compared to $33.9 million, or $.43 per share, reported for the same period last year.
Operating margins (excluding interest income), on a same market basis, were 23.1% and 19.5% for the quarter and nine months ended May 31, 1999, respectively, compared to 23.0% and 18.6% for the quarter and nine months ended May 31, 1998, respectively. Including all markets, operating margins were 22.0% and 18.5% for the quarter and nine months ended May 31, 1999, respectively, compared to 22.9% and 18.6% for the quarter and nine months ended May 31, 1998, respectively.
The Company had approximately 80,700 students enrolled in degree programs at May 31, 1999, compared to 66,800 students at May 31, 1998.
Dr. John G. Sperling, Chairman of the Board and CEO, said, "We are pleased with the Company’s continued growth and success. During the third quarter of 1999, the Company opened a new IPD learning center in Troy, MI, a new WIU learning center in Chandler, AZ and three new University of Phoenix learning centers in Arizona and California and Oregon. In addition, our newest campus in Maryland began classes in late April."
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 80,700 students. Educational programs and services are currently offered at 132 campuses and learning centers in 35 states, Puerto Rico and Vancouver, Canada.
For more information about Apollo Group, Inc. and its subsidiaries, call
1-800-990-APOL.
Apollo Group, Inc. and Subsidiaries Selected Financial and Operating Data
(Dollars in thousands, except per share amounts)
| Three Months Ended | Nine Months Ended | ||||
| May 31, 1999 | May 31, 1998 | May 31, 1999 | May 31, 1998 | ||
| (Unaudited) | (Unaudited) | ||||
| Revenues: | |||||
| Tuition and other, net | $138,107 | $105,201 | $363,161 | $278,154 | |
| Interest income | 1,366 | 1,582 | 3,982 | 4,293 | |
| Total net revenues | 139,473 | 106,783 | 367,143 | 282,447 | |
| Costs and expenses: | |||||
| Instruction costs and services | 78,873 | 61,093 | 212,160 | 168,496 | |
| Selling and promotional | 18,783 | 11,504 | 55,232 | 32,840 | |
| General and administrative | 10,077 | 8,479 | 28,738 | 25,041 | |
| Total costs and expenses | 107,733 | 81,076 | 296,130 | 226,377 | |
| Income before income taxes | 31,740 | 25,707 | 71,013 | 56,070 | |
| Less provision for income taxes | 12,780 | 10,185 | 28,360 | 22,209 | |
| Net income | $18,960 | $15,522 | $42,653 | $33,861 | |
| Diluted net income per share | $.24 | $.20 | $.54 | $.43 | |
| Diluted weighted average shares outstanding | 78,914,000 | 79,250,000 | 79,089,000 | 78,991,000 | |
| OPERATING DATA: | May 31, 1999 | May 31, 1998 | |||
| Students enrolled in degree programs | 80,700 | 66,800 | |||
| Number of locations | 132 | 112 | |||
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.