Apollo Group, Inc. Reports Fiscal 1999 Fourth Quarter and Year End Results
Phoenix, Arizona, October 14, 1999 -- Apollo Group, Inc. (Nasdaq:APOL) today reported fiscal year 1999 financial results for the fourth quarter and year ended August 31, 1999.
Total revenues for the fiscal year ended August 31, 1999 increased by 29.6% to $498.8 million, compared to $384.9 million for the prior fiscal year. Net income for the fiscal year ended August 31, 1999 increased by 27.4% to $59.0 million, or $.75 per share, as compared to $46.3 million, or $.59 per share, reported for the prior fiscal year.
Total revenues for the fourth quarter of fiscal year 1999 increased by 27.1% to $135.7 million, compared to $106.7 million in the fourth quarter of fiscal year 1998. Net income for the three months ended August 31, 1999 increased 31.5% to $16.4 million, or $.21 per share, as compared to $12.4 million, or $.16 per share, reported for the same period last year.
Consolidated degree enrollments at August 31, 1999 increased by 21.6% to 86,800 students compared to 71,355 students at August 31, 1998. Degree enrollments at the University of Phoenix were 66,783 students at August 31, 1999 compared to 53,249 students at August 31, 1998 representing a 25.4% increase in degree enrollments. The University of Phoenix accounted for 89.4% of the $442 million in net tuition revenues from students enrolled in degree programs for the fiscal year ended August 31, 1999.
Dr. John G. Sperling, Chairman of the Board and CEO, said, "We are extremely pleased with the Company’s continued growth and success. During fiscal year 1999, the University of Phoenix added six new campuses in Oklahoma City and Tulsa, Oklahoma; Ft. Lauderdale, Florida; Vancouver, British Columbia; Columbia, Maryland; and Grand Rapids, Michigan."
Dr. Sperling continued, "We are also pleased with our ability to continue to expand operating margins given our geographic expansion during the last two fiscal years. Operating margins increased to 18.6% for fiscal year 1999, as compared to 18.2% for fiscal year 1998. Throughout fiscal year 2000 the Company will continue to open additional University of Phoenix campuses and learning centers and the Institute for Professional Development plans to enter into new contracts."
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 86,800 students. Educational programs and services are offered at 49 campuses and 80 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 | Year Ended | ||||
| Aug.
31, 1999 |
Aug. 31, 1998 |
Aug.
31, 1999 |
Aug. 31, 1998 |
||
| (Unaudited) | |||||
| Revenues: | |||||
| Tuition and other, net | $135,685 | $106,723 | $498,846 | $384,877 | |
| Costs and expenses: | |||||
| Instruction costs and services | 78,902 | 64,096 | 291,062 | 232,592 | |
| Selling and promotional | 19,973 | 16,195 | 75,205 | 49,035 | |
| General and administrative | 11,131 | 8,071 | 39,826 | 33,064 | |
| 110,006 | 88,362 | 406,093 | 314,691 | ||
| Income from operations | 25,679 | 18,361 | 92,753 | 70,186 | |
| Interest income, net | 1,290 | 1,841 | 5,229 | 6,086 | |
| Income before income taxes | 26,969 | 20,202 | 97,982 | 76,272 | |
| Less provision for income taxes | 10,617 | 7,766 | 38,977 | 29,975 | |
| Net income | $16,352 | $12,436 | $59,005 | $46,297 | |
| Diluted net income per share | $.21 | $.16 | $.75 | $.59 | |
| Diluted weighted average shares outstanding | 78,068,000 | 79,372,000 | 78,834,000 | 79,086,000 | |
| OPERATING DATA: | Aug. 31, |
Aug. 31, |
|||
| Students enrolled in degree programs | 86,800 | 71,355 | |||
| Number of locations: | |||||
| Campuses | 49 | 43 | |||
| Learning Centers | 80 | 71 | |||
| 129 | 114 | ||||
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.