Apollo Group, Inc. Reports Fiscal 1998 Fourth Quarter and Year End Results
Phoenix, Arizona, October 21, 1998 -- Apollo Group, Inc. (Nasdaq:APOL) today reported fiscal 1998 financial results for the fourth quarter and year ended August 31, 1998.
Total revenues for the fourth quarter of fiscal 1998 rose 41.0% to $108.6 million, compared with $77.1 million in the fourth quarter of fiscal 1997. Net income for the three months ended August 31, 1998 increased 31.7% to $12.4 million, or $.16 per share, as compared to $9.4 million, or $.12 per share, reported for the same period last year.
Total revenues for the fiscal year ended August 31, 1998 increased by 37.9% to $391.1 million, compared with $283.5 million for the prior fiscal year. Net income for the fiscal year ended August 31, 1998 increased by 38.7% to $46.3 million, or $.59 per share, as compared to $33.4 million, or $.43 per share, reported for the prior fiscal year.
Revenue growth in the fourth quarter resulted primarily from a 31.7% increase in average degree enrollments for the University of Phoenix (University of Phoenix) and a 16.2% increase in average degree enrollments for the Institute for Professional Development (IPD). Consolidated degree enrollments at August 31, 1998 increased by 27.1% to 71,400 students, compared to 56,200 students at August 31, 1997.
Dr. John G. Sperling, Chairman of the Board and CEO, said, "We continue to be pleased with the Company’s growth and success. During the fourth quarter of 1998, the Company opened two new University of Phoenix learning centers in California and received NCA approval to offer its first doctoral degree. IPD also opened a new campus in New Jersey."
Dr. Sperling continued, "Throughout this next fiscal year, the Company will continue to open additional campuses and learning centers and sign new IPD contracts. Apollo also plans to increase its leadership position in the distance education market. Our joint ownership of One Touch Systems with Hughes Network Systems now gives Apollo a global reach. Apollo will develop products and marketing strategies for delivering education and training to the 20,000 corporate classrooms that One Touch has equipped with interactive audio, video and data capability and, by DirecPC™, to desktops anywhere in the world. We are pleased with our financial performance and accomplishments during fiscal 1998 and look forward to continued growth in fiscal 1999."
Apollo Group, Inc., through its subsidiaries the University of Phoenix, Inc., the Institute for Professional Development, the College for Financial Planning Institutes Corporation and Western International University, 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 71,400 students. Educational programs and services are currently offered at 114 campuses and learning centers in 34 states, Puerto Rico and London, England.
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, 1998 |
Aug. 31, 1997 |
Aug.
31, 1998 |
Aug. 31, 1997 |
||
| (Unaudited) | |||||
| Net revenues: | |||||
| Tuition and other, net | $106,723 | $75,773 | $384,877 | $279,195 | |
| Interest income | 1,912 | 1,286 | 6,205 | 4,341 | |
| Total net revenues | 108,635 | 77,059 | 391,082 | 283,536 | |
| Costs and expenses: | |||||
| Instruction costs and services | 64,096 | 46,451 | 232,592 | 167,720 | |
| Selling and promotional | 16,195 | 9,724 | 49,035 | 35,187 | |
| General and administrative | 8,142 | 5,792 | 33,183 | 25,648 | |
| Total costs and expenses | 88,433 | 61,967 | 314,810 | 228,555 | |
| Income before income taxes | 20,202 | 15,092 | 76,272 | 54,981 | |
| Less provision for income taxes | 7,766 | 5,648 | 29,975 | 21,602 | |
| Net income | $12,436 | $9,444 | $46,297 | $33,379 | |
| Diluted net income per share | $.16 | $.12 | $.59 | $.43 | |
| Diluted weighted average shares outstanding | 79,372,000 | 78,050,000 | 79,086,000 | 77,726,000 | |
| OPERATING DATA: | Aug.
31, 1998 |
Aug. 31, |
|||
| Students enrolled in degree programs | 71,400 | 56,200 | |||
| Number of locations | 114 | 96 | |||
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.