This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Apollo Group, Inc. Reports Fiscal 2012 Fourth Quarter And Year-End Results

Marketing increased $9.7 million, or 5.7%, to $180.3 million in the fourth quarter of fiscal year 2012 compared to the fourth quarter of fiscal year 2011. The increase was principally attributable to higher employee compensation and other costs, including expense related to building employer relationships, partially offset by lower advertising costs.

Admissions advisory decreased $13.6 million, or 13.7%, to $85.9 million in the fourth quarter of fiscal year 2012 compared to the fourth quarter of fiscal year 2011. The decrease was principally attributable to lower admissions advisory headcount, partially offset by higher average employee compensation costs.

General and administrative decreased $6.2 million, or 6.2%, to $92.3 million in the fourth quarter of fiscal year 2012 compared to the fourth quarter of fiscal year 2011.

Depreciation and amortization increased $3.2 million, or 7.7%, to $44.7 million in the fourth quarter of fiscal year 2012 compared to the fourth quarter of fiscal year 2011. The increase was principally attributable to higher intangible asset amortization as a result of acquiring Carnegie Learning in the first quarter of fiscal year 2012 and increased capital expenditures and capital leases in recent years primarily related to information technology.

Provision for uncollectible accounts receivable (“bad debt expense”) decreased $0.9 million, or 2.3%, to $38.7 million in the fourth quarter of fiscal year 2012 compared to the fourth quarter of fiscal year 2011. The expense decrease was primarily attributable to reductions in gross accounts receivable principally resulting from decreases in University of Phoenix Degreed Enrollment.

Financial and Operating Metrics

Below are Apollo Group’s unaudited financial data and operating metrics for the fourth quarter of fiscal year 2012 versus the prior-year period.

      Q4 2012     Q4 2011
Revenues (in thousands)
Degree Seeking Gross Revenues (1) $ 972,079 $ 1,099,572
Less: Discounts and other (62,613 ) (63,486 )
Degree Seeking Net Revenues (1) 909,466 1,036,086
Non-degree Seeking Revenues (2) 12,563 12,730
Other, net of discounts (3) 74,468   71,404  
$ 996,497   $ 1,120,220  
 
Revenue by Degree Type (in thousands) (1)
Associate’s $ 237,737 $ 320,985
Bachelor’s 560,406 580,588
Master’s 152,205 174,451
Doctoral 21,731 23,548
Less: Discounts and other (62,613 ) (63,486 )
$ 909,466   $ 1,036,086  
 
Degreed Enrollment (rounded to hundreds) (4)
Associate’s 102,600 136,300
Bachelor’s 172,600 183,100
Master’s 46,400 54,000
Doctoral 6,800   7,400  
328,400   380,800  
 
Degree Seeking Gross Revenues per Degreed Enrollment (1), (4)
Associate’s $ 2,317 $ 2,355
Bachelor’s 3,247 3,171
Master’s 3,280 3,231
Doctoral 3,196 3,182
All degrees (after discounts) $ 2,769 $ 2,721
 
New Degreed Enrollment (rounded to hundreds) (5)
Associate’s 20,400 24,200
Bachelor’s 23,500 27,200
Master’s 8,200 9,000
Doctoral 700   800  
52,800   61,200  
 
(1) Represents revenue from tuition and other fees for students enrolled in University of Phoenix degree programs. Also includes revenue from tuition and other fees for students participating in University of Phoenix certificate programs of at least 18 credits in length with some course applicability into a related degree program.
 
(2) Represents revenue from tuition and other fees for students participating in University of Phoenix certificate programs less than 18 credits in length, certificate programs with no applicability into a related degree program, single course and continuing education courses.
 
(3) Represents revenues from Apollo Global and other.
 
(4) Represents:

- students enrolled in a University of Phoenix degree program who attended a credit bearing course during the quarter and had not graduated as of the end of the quarter;

- students who previously graduated from one degree program and started a new degree program in the quarter (for example, a graduate of the associate’s degree program returns for a bachelor’s degree or a bachelor’s degree graduate returns for a master’s degree); and

- students participating in certain certificate programs of at least 18 credits with some course applicability into a related degree program.

 
(5) Represents:

- new students and students who have been out of attendance for more than 12 months who enroll in a University of Phoenix degree program and start a credit bearing course in the quarter;

- students who have previously graduated from a degree program and start a new degree program in the quarter; and

- students who commence participation in certain certificate programs of at least 18 credits with some course applicability into a related degree program.

Unaudited 2012 Fiscal Year Results of Operations

Net revenue for fiscal year 2012 totaled $4.3 billion, which represents a 9.7% decrease compared to fiscal year 2011. The decrease was primarily attributable to University of Phoenix’s 10.2% decrease in net revenue principally due to lower University of Phoenix enrollment, partially offset by selective tuition price and other fee changes. In fiscal year 2012, University of Phoenix's Average Degreed Enrollment decreased 14.8% as compared to fiscal year 2011.

3 of 8

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,083.80 -2.83 -0.02%
S&P 500 1,987.98 +0.97 0.05%
NASDAQ 4,472.1080 -1.5890 -0.04%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs