Founded in 1973, Apollo is the world's second largest for profit education company.Through its ownership of the University of Pheonix, Apollo Global Carnegie Learning, College for Financial Planning and the Institute for Professional Development, it has established itself as a leading provider of higher education programs for working adults by focusing on servicing the needs of the working adult.
Apollo Group revenues fall 11% in Q4 prompting the share price to fall 24.1%, a new low.
Apollo Group, Inc. today reported financial results for the three months and fiscal year ended August 31, 2012.
“This past year, we have made great strides in executing on our strategy to differentiate University of Phoenix, diversify Apollo Group, and refine our business processes and delivery structure to be more efficient and effective, while providing a world-class student experience,” said Apollo Group Chief Executive Officer and Apollo Global Chairman Greg Cappelli. “As we build the university of the future, our priority is to connect education to careers for our students, helping them achieve their desired academic and life outcomes.”
Unaudited Fourth Quarter Fiscal Year 2012 Results of Operations
Net revenue for the fourth quarter of fiscal year 2012 totaled $996.5 million, a decline of 11.0% due principally to lower University of Phoenix enrollment, partially offset by selective tuition price and other fee changes. For the quarter, University of Phoenix Degreed Enrollment decreased 13.8% to 328,400 and new enrollments decreased 13.7% compared to the fourth quarter of fiscal year 2011. The decline in new enrollments was due to changing regulatory requirements, an improving job market, robust competition and a volatile economy.
In the fourth quarter of 2012, the company’s Associates Degree revenue was $237.7 million, down 26% year on year; Bachelor’s Degree revenue was $560.4 million, down 3.5%, Master’s Degree revenue declined 13% to $152.2 million and Doctoral Degree revenue was $21.7 million, down 8.1%.
Adjusted operating margins (excluding restructuring and other charges) were 10% in the quarter, down from just over 20% in 2011. Apollo had cash and cash equivalents of $1.28 bn as of August 31, 2012 (2011: $1.57bn).
On October 12, 2012, the company bought the remaining 14.4% non-controlling ownership in Apollo Group from The Carlyle Group for $42.5 million in cash, in addition of a contingent payment based on the performance of BPP until August 31, 2017.
The company intends to re-design its programs to increase the employability of its students. Also the company is coordinating with 2,000 other companies to educate their workforces. The company says it is receiving good response from this channel.
The company has issued the net revenue guidance range of $3.65 to $3.80 billion for 2013. The company expects new degreed enrollment growth to become positive some time in 2013. Adjusted operating income is expected to be in the range of $525 to $575 million in 2013.All company news →
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