Apollo Group, Inc. Reports Revenues and Earnings for First Quarter Fiscal 1999
Phoenix, Arizona, December 17, 1998 -- Apollo Group, Inc. (Nasdaq:APOL) today reported financial results for the first quarter of fiscal 1999 ended November 30, 1998.
Total revenues for the three months ended November 30, 1998 rose 31.2% to $117.0 million, compared with $89.2 million in the first quarter of fiscal 1998. Net income for the three months increased 27.6% to $13.5 million, or $.17 per share, as compared to $10.6 million, or $.13 per share, reported for the same period last year.
Revenue growth in the first quarter resulted primarily from a 26.4% 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 32.3%, 14.1%, and 15.7%, respectively. The Company had approximately 74,500 students enrolled in degree programs at November 30, 1998, compared to 59,600 students at November 30, 1997.
Dr. John G. Sperling, Chairman of the Board and CEO, said, "During the first quarter of fiscal 1999, the Company opened two new campuses in Oklahoma (Tulsa and Oklahoma City) and one new campus in Florida (Ft. Lauderdale). In addition, the Company opened four new learning centers in existing markets. In November we received NCA approval for Maryland and plan to begin enrolling students at our new campus in the second quarter. We are pleased with the Company’s continued growth and expansion."
Although the Company enrolls students throughout the year, student enrollments have fluctuated throughout each 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 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 74,500 students. Educational programs and services are currently offered at 119 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 | ||
| November
30, 1998 |
November
30, 1997 |
|
| (Unaudited) | ||
| Revenues: | ||
| Tuition and other, net | $115,698 | $87,875 |
| Interest income | 1,312 | 1,325 |
| Total net revenues | 117,010 | 89,200 |
| Costs and expenses: | ||
| Instruction costs and services | 67,668 | 52,623 |
| Selling and promotional | 17,932 | 10,566 |
| General and administrative | 9,125 | 8,446 |
| Total costs and expenses | 94,725 | 71,635 |
| Income before income taxes | 22,285 | 17,565 |
| Less provision for income taxes | 8,747 | 6,956 |
| Net income | $13,538 | $10,609 |
| Net income per share | $.17 | $.13 |
| Weighted average shares | 79,159,000 | 78,689,000 |
| OPERATING DATA: | ||
| Students enrolled in degree programs | 74,500 | 59,600 |
| Number of locations | 119 | 105 |
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.