PHOENIX--(BUSINESS WIRE)--Apollo Education Group, Inc. (NASDAQ: APOL) (“Apollo” or the “Company”)
today reported financial results for the three and six months ended
February 29, 2016, with second quarter revenue of $465.3 million and a
$0.56 diluted loss per share from continuing operations, or a $0.31 loss
per share excluding special items.
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“While we are facing significant industry and regulatory headwinds that
have resulted in declining enrollment at University of Phoenix, we
remain focused and committed to a transformational plan that will help
the university improve student outcomes and compete more effectively
over a long-term period,” said Greg Cappelli, Chief Executive Officer of
Apollo Education Group. “We continue to expand internationally through
Apollo Global, which again generated double-digit revenue growth on a
constant currency basis. We also continue to improve operating
efficiency throughout the entire organization.”
Second Quarter 2016 Results of Operations
Apollo Education Group reported net revenue for the second quarter 2016
of $465.3 million compared to $575.1 million for the second quarter
2015. Second quarter 2016 University of Phoenix New Degreed Enrollment
was 17,200 and Degreed Enrollment was 162,400, compared to New Degreed
Enrollment of 28,300 and Degreed Enrollment of 213,800 for the prior
year second quarter. Operating loss for the second quarter 2016 was
$80.8 million, compared to operating loss of $37.5 million for the
second quarter 2015. Loss from continuing operations attributable to
Apollo Education Group for the second quarter 2016 was $60.4 million, or
$0.56 per share, compared to loss of $23.2 million, or $0.21 per share,
for the prior year second quarter.
Excluding special items, loss from continuing operations attributable to
Apollo Education Group for the second quarter 2016 was $33.2 million, or
$0.31 per share, compared to $7.9 million, or $0.07 per share, for the
second quarter 2015. Adjusted EBITDA was negative $12.9 million for the
second quarter 2016 compared to $17.9 million for the second quarter
2015. (Special items and Adjusted EBITDA for the respective periods are
included in the reconciliation of GAAP to non-GAAP financial information
tables of this press release.)
First Six Months of 2016 Results of Operations
Net revenue for the first six months of fiscal year 2016 totaled $1.1
billion, compared to $1.3 billion in the first six months of fiscal year
2015. In the first six months of 2016, University of Phoenix Average
Degreed Enrollment was 176,700, compared to 224,900 for the prior year
period. Operating loss for the first six months of 2016 was $126.1
million compared to operating income of $26.7 million in the prior year
period. Loss from continuing operations attributable to Apollo Education
Group for the first six months of 2016 was $117.9 million, or $1.09 per
share, compared to income of $12.9 million, or $0.12 per share, for the
first six months of 2015.
Excluding special items, loss from continuing operations attributable to
Apollo Education Group for the first six months of fiscal year 2016 was
$0.1 million, or $0.00 per share, compared to income of $42.0 million,
or $0.38 per share, for the first six months of 2015. Adjusted EBITDA
was $70.2 million for the first six months of 2016 compared to $136.3
million for the first six months of 2015. (Special items and Adjusted
EBITDA for the respective periods are included in the reconciliation of
GAAP to non-GAAP financial information tables of this press release.)
Balance Sheet and Cash Flow
As of February 29, 2016, the Company’s unrestricted cash and cash
equivalents and marketable securities (including current and noncurrent)
totaled $675.1 million, compared to $794.2 million as of August 31,
2015. The decrease was primarily attributable to $101.2 million paid to
acquire Career Partner GmbH and capital expenditures.
Total debt outstanding (including short-term borrowings and the current
portion of long-term debt) was $62.0 million as of February 29, 2016.
Business Outlook
The Company continues to experience headwinds causing further reductions
to the operating outlook for the year. Domestically, the primary factors
include lower New Degreed Enrollment and fewer than expected continuing
students at the University of Phoenix. This is in part attributable to
the implementation of components of the university’s transformation
plan, including the reduction in the frequency of course start dates,
which has impacted the timing of student breaks and reenrollment. In
addition, we have reduced the number of associate programs, realigned
the campus strategy, focused on a new approach to admissions
diagnostics, and discontinued the use of any third-party marketing
affiliates. Internationally, the strengthening of the U.S. dollar
relative to other currencies is negatively impacting reported revenue.
While efforts to reduce expenses remain on track, the latest projections
for Revenue, Operating Income and Degreed Enrollment are below the
outlook provided on the first quarter earnings call. Due to the pending
merger transaction and the challenges in accurately forecasting
operating results during the implementation of the transformational plan
for the University of Phoenix, the Company is withdrawing the prior
guidance issued on the first quarter earnings call on January 11, 2016,
and is not providing an updated financial outlook at this time.
Conference Call Information
In light of the pending merger announced February 8, 2016, the Company
will not be hosting an investor conference call following the issuance
of its fiscal year 2016 second quarter earnings press release.
About Apollo Education Group, Inc.
Apollo Education Group, Inc. is one of the world’s largest private
education providers, serving students since 1973. Through its
subsidiaries, Apollo Education Group offers undergraduate, graduate,
certificate and nondegree educational programs and services, online and
on-campus, principally to working learners in the U.S. and abroad. For
more information about Apollo Education Group, Inc. and its
subsidiaries, call (800) 990-APOL or visit the Company’s website at www.apollo.edu.
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Three Months Ended | Six Months Ended | |||||||||||||||||||||
(In thousands, except per share data) |
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Net revenue | $ | 465,348 | $ | 575,103 | $ | 1,051,369 | $ | 1,289,628 | ||||||||||||||
Costs and expenses: | ||||||||||||||||||||||
Instructional and student advisory | 270,640 | 290,933 | 561,967 | 612,507 | ||||||||||||||||||
Marketing | 97,796 | 125,398 | 191,598 | 252,281 | ||||||||||||||||||
Admissions advisory | 30,120 | 57,840 | 64,308 | 114,925 | ||||||||||||||||||
General and administrative | 65,789 | 69,955 | 133,234 | 141,778 | ||||||||||||||||||
Depreciation and amortization | 26,754 | 32,105 | 54,148 | 65,736 | ||||||||||||||||||
Provision for uncollectible accounts receivable | 12,783 | 11,969 | 28,096 | 29,367 | ||||||||||||||||||
Restructuring and impairment charges | 29,389 | 22,530 | 127,212 | 41,278 | ||||||||||||||||||
Merger, acquisition and other related costs | 12,893 | 1,742 | 16,871 | 4,961 | ||||||||||||||||||
Litigation charge | — | 100 | — | 100 | ||||||||||||||||||
Total costs and expenses | 546,164 | 612,572 | 1,177,434 | 1,262,933 | ||||||||||||||||||
Operating (loss) income | (80,816 | ) | (37,469 | ) | (126,065 | ) | 26,695 | |||||||||||||||
Interest income | 923 | 740 | 1,842 | 1,329 | ||||||||||||||||||
Interest expense | (1,972 | ) | (1,739 | ) | (3,428 | ) | (3,401 | ) | ||||||||||||||
Other loss, net | (1,113 | ) | (1,152 | ) | (1,956 | ) | (2,442 | ) | ||||||||||||||
(Loss) income from continuing operations before income taxes | (82,978 | ) | (39,620 | ) | (129,607 | ) | 22,181 | |||||||||||||||
Benefit from (provision for) income taxes | 19,842 | 13,924 | 7,603 | (13,130 | ) | |||||||||||||||||
(Loss) income from continuing operations | (63,136 | ) | (25,696 | ) | (122,004 | ) | 9,051 | |||||||||||||||
Loss from discontinued operations, net of tax | — | (10,442 | ) | (3,259 | ) | (12,720 | ) | |||||||||||||||
Net loss | (63,136 | ) | (36,138 | ) | (125,263 | ) | (3,669 | ) | ||||||||||||||
Net loss attributable to noncontrolling interests | 2,740 | 2,528 | 4,102 | 3,844 | ||||||||||||||||||
Net (loss) income attributable to Apollo | $ | (60,396 | ) | $ | (33,610 | ) | $ | (121,161 | ) | $ | 175 | |||||||||||
Earnings (loss) per share - Basic: | ||||||||||||||||||||||
Continuing operations attributable to Apollo | $ | (0.56 | ) | $ | (0.21 | ) | $ | (1.09 | ) | $ | 0.12 | |||||||||||
Discontinued operations attributable to Apollo | — | (0.10 | ) | (0.03 | ) | (0.12 | ) | |||||||||||||||
Basic loss per share attributable to Apollo | $ | (0.56 | ) | $ | (0.31 | ) | $ | (1.12 | ) | $ | — | |||||||||||
Earnings (loss) per share - Diluted: | ||||||||||||||||||||||
Continuing operations attributable to Apollo | $ | (0.56 | ) | $ | (0.21 | ) | $ | (1.09 | ) | $ | 0.12 | |||||||||||
Discontinued operations attributable to Apollo | — | (0.10 | ) | (0.03 | ) | (0.12 | ) | |||||||||||||||
Diluted loss per share attributable to Apollo | $ | (0.56 | ) | $ | (0.31 | ) | $ | (1.12 | ) | $ | — | |||||||||||
Basic weighted average shares outstanding | 108,595 | 108,166 | 108,521 | 108,375 | ||||||||||||||||||
Diluted weighted average shares outstanding | 108,595 | 108,166 | 108,521 | 109,337 | ||||||||||||||||||
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As of | |||||||||||
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ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 408,814 | $ | 503,705 | |||||||
Restricted cash and cash equivalents | 170,712 | 198,369 | |||||||||
Marketable securities | 215,038 | 194,676 | |||||||||
Accounts receivable, net | 238,626 | 198,459 | |||||||||
Prepaid taxes | 35,153 | 38,371 | |||||||||
Other current assets | 48,546 | 48,823 | |||||||||
Assets of business held for sale | — | 40,897 | |||||||||
Total current assets | 1,116,889 | 1,223,300 | |||||||||
Marketable securities | 51,267 | 95,815 | |||||||||
Property and equipment, net | 346,498 | 370,281 | |||||||||
Goodwill | 266,836 | 247,190 | |||||||||
Intangible assets, net | 198,127 | 143,244 | |||||||||
Deferred taxes | 99,616 | 92,105 | |||||||||
Other assets | 31,088 | 29,129 | |||||||||
Total assets | $ | 2,110,321 | $ | 2,201,064 | |||||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Short-term borrowings and current portion of long-term debt | $ | 20,961 | $ | 14,080 | |||||||
Accounts payable | 70,758 | 64,100 | |||||||||
Student deposits | 201,470 | 245,470 | |||||||||
Deferred revenue | 258,982 | 186,950 | |||||||||
Accrued and other current liabilities | 278,662 | 280,847 | |||||||||
Liabilities of business held for sale | — | 40,897 | |||||||||
Total current liabilities | 830,833 | 832,344 | |||||||||
Long-term debt | 41,075 | 31,566 | |||||||||
Deferred taxes | 16,745 | 7,729 | |||||||||
Other long-term liabilities | 186,796 | 172,452 | |||||||||
Total liabilities | 1,075,449 | 1,044,091 | |||||||||
Commitments and contingencies | |||||||||||
Redeemable noncontrolling interests | 9,835 | 11,915 | |||||||||
Shareholders’ equity: | |||||||||||
Preferred stock, no par value | — | — | |||||||||
Apollo Class A nonvoting common stock, no par value | 103 | 103 | |||||||||
Apollo Class B voting common stock, no par value | 1 | 1 | |||||||||
Additional paid-in capital | — | — | |||||||||
Apollo Class A treasury stock, at cost | (3,916,516 | ) | (3,928,419 | ) | |||||||
Retained earnings | 5,031,861 | 5,153,452 | |||||||||
Accumulated other comprehensive loss | (90,870 | ) | (80,579 | ) | |||||||
Total Apollo shareholders’ equity | 1,024,579 | 1,144,558 | |||||||||
Noncontrolling interests | 458 | 500 | |||||||||
Total equity | 1,025,037 | 1,145,058 | |||||||||
Total liabilities, redeemable noncontrolling interests and shareholders’ equity | $ | 2,110,321 | $ | 2,201,064 | |||||||
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Six Months Ended | |||||||||||
($ in thousands) |
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Operating activities: | |||||||||||
Net loss | $ | (125,263 | ) | $ | (3,669 | ) | |||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Share-based compensation | 18,586 | 21,914 | |||||||||
Excess tax benefits from share-based compensation | — | (236 | ) | ||||||||
Depreciation and amortization | 54,148 | 71,223 | |||||||||
Accelerated depreciation included in restructuring | 9,463 | 4,272 | |||||||||
Impairment charges and loss on asset dispositions | 76,138 | 21,228 | |||||||||
Non-cash foreign currency loss, net | 938 | 1,362 | |||||||||
Provision for uncollectible accounts receivable | 28,096 | 29,367 | |||||||||
Deferred income taxes | (11,489 | ) | (10,434 | ) | |||||||
Changes in assets and liabilities, excluding the impact of acquisitions: | |||||||||||
| 27,687 | (1,002 | ) | ||||||||
Accounts receivable | (74,080 | ) | (51,199 | ) | |||||||
Prepaid taxes | 2,276 | (21,440 | ) | ||||||||
Other assets | 1,101 | (3,771 | ) | ||||||||
Accounts payable | 5,893 | 7,870 | |||||||||
Student deposits | (43,396 | ) | (15,873 | ) | |||||||
Deferred revenue | 48,604 | 47,821 | |||||||||
Accrued and other liabilities | 4,381 | (42,320 | ) | ||||||||
Net cash provided by operating activities | 23,083 | 55,113 | |||||||||
Investing activities: | |||||||||||
Purchases of property and equipment | (33,703 | ) | (43,310 | ) | |||||||
Purchases of marketable securities | (147,644 | ) | (109,544 | ) | |||||||
Maturities and sales of marketable securities | 168,941 | 113,651 | |||||||||
Acquisitions, net of cash acquired | (101,196 | ) | (21,166 | ) | |||||||
Other investing activities | (219 | ) | 467 | ||||||||
Net cash used in investing activities | (113,821 | ) | (59,902 | ) | |||||||
Financing activities: | |||||||||||
Payments on borrowings | (58,153 | ) | (599,925 | ) | |||||||
Proceeds from borrowings | 52,754 | 4,515 | |||||||||
Share repurchases | (626 | ) | (38,718 | ) | |||||||
Share reissuances | 638 | 995 | |||||||||
Excess tax benefits from share-based compensation | — | 236 | |||||||||
Payment for contingent consideration | — | (21,371 | ) | ||||||||
Net cash used in financing activities | (5,387 | ) | (654,268 | ) | |||||||
Exchange rate effect on cash and cash equivalents | 1,234 | (3,678 | ) | ||||||||
Net decrease in cash and cash equivalents | (94,891 | ) | (662,735 | ) | |||||||
Cash and cash equivalents, beginning of period | 503,705 | 1,228,813 | |||||||||
Cash and cash equivalents, end of period | $ | 408,814 | $ | 566,078 | |||||||
Supplemental disclosure of cash flow and non-cash information: | |||||||||||
Cash paid for income taxes, net of refunds | $ | — | $ | 37,346 | |||||||
Cash paid for interest | 3,481 | 3,514 | |||||||||
Restricted stock units vested and released | 1,777 | 6,255 | |||||||||
Unsettled share repurchases | — | 1,600 | |||||||||
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Three Months Ended | Six Months Ended | |||||||||||||||||||||
($ in thousands) |
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Net revenue: | ||||||||||||||||||||||
University of Phoenix: | ||||||||||||||||||||||
Degree seeking gross revenues(1) | $ | 414,298 | $ | 542,139 | $ | 937,888 | $ | 1,199,305 | ||||||||||||||
Less: Discounts and other | (57,263 | ) | (64,159 | ) | (127,731 | ) | (139,953 | ) | ||||||||||||||
Degree seeking net revenues(1) | 357,035 | 477,980 | 810,157 | 1,059,352 | ||||||||||||||||||
Other revenues | 7,921 | 9,789 | 17,416 | 21,270 | ||||||||||||||||||
Total University of Phoenix | 364,956 | 487,769 | 827,573 | 1,080,622 | ||||||||||||||||||
Apollo Global | 93,796 | 81,100 | 209,128 | 196,240 | ||||||||||||||||||
Other | 6,596 | 6,234 | 14,668 | 12,766 | ||||||||||||||||||
Net revenue | $ | 465,348 | $ | 575,103 | $ | 1,051,369 | $ | 1,289,628 | ||||||||||||||
Operating (loss) income: | ||||||||||||||||||||||
University of Phoenix | $ | (9,078 | ) | $ | 16,767 | $ | (26,582 | ) | $ | 113,381 | ||||||||||||
Apollo Global | (26,883 | ) | (27,541 | ) | (29,218 | ) | (32,383 | ) | ||||||||||||||
Other | (44,855 | ) | (26,695 | ) | (70,265 | ) | (54,303 | ) | ||||||||||||||
Operating (loss) income | $ | (80,816 | ) | $ | (37,469 | ) | $ | (126,065 | ) | $ | 26,695 | |||||||||||
(1) Represents revenue from tuition and other fees for
students enrolled in University of Phoenix degree programs or
certificate programs of at least 18 credits in length with some course
applicability into a related degree program.
University of Phoenix Enrollment Data: | |||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
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Degreed Enrollment(1) | 162,400 | 213,800 | (24.0 | )% |
| 176,700 | 224,900 | (21.4 | )% | ||||||||||||||||||
New Degreed Enrollment(2) | 17,200 | 28,300 | (39.2 | )% |
| 41,700 | 67,900 | (38.6 | )% | ||||||||||||||||||
| $ | 2,198 | $ | 2,236 | |||||||||||||||||||||||
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(1) Represents students enrolled in a 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 (e.g., a graduate of an associate’s degree program returns
for a bachelor’s degree); and students participating in certain
certificate programs of at least 18 credits with some course
applicability into a related degree program.
(2) Represents new students and students who have been out of
attendance for more than 12 months who enroll in a 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.
(3) Represents the average of quarterly Degreed Enrollment
from the beginning to the end of the respective periods.
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Three Months Ended | Six Months Ended | |||||||||||||||||||||
(In thousands, except per share data) |
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Net (loss) income attributable to Apollo, as reported | $ | (60,396 | ) | $ | (33,610 | ) | $ | (121,161 | ) | $ | 175 | |||||||||||
Less: Loss from discontinued operations, net of tax | — | (10,442 | ) | (3,259 | ) | (12,720 | ) | |||||||||||||||
(Loss) income from continuing operations attributable to Apollo | (60,396 | ) | (23,168 | ) | (117,902 | ) | 12,895 | |||||||||||||||
Special items: | ||||||||||||||||||||||
Restructuring and impairment charges(1) | 29,389 | 22,530 | 127,212 | 41,278 | ||||||||||||||||||
Merger, acquisition and other related costs | 12,893 | 1,742 | 16,871 | 4,961 | ||||||||||||||||||
Litigation charges | — | 100 | — | 100 | ||||||||||||||||||
Special items before income taxes | 42,282 | 24,372 | 144,083 | 46,339 | ||||||||||||||||||
Less: income tax effects of special items | (15,133 | ) | (9,091 | ) | (26,290 | ) | (17,215 | ) | ||||||||||||||
Special items, net of income taxes | 27,149 | 15,281 | 117,793 | 29,124 | ||||||||||||||||||
(Loss) income from continuing operations attributable to Apollo, excluding special items | $ | (33,247 | ) | $ | (7,887 | ) | $ | (109 | ) | $ | 42,019 | |||||||||||
Diluted (loss) income per share from continuing operations attributable to Apollo, as reported | $ | (0.56 | ) | $ | (0.21 | ) | $ | (1.09 | ) | $ | 0.12 | |||||||||||
Diluted (loss) income per share from continuing operations attributable to Apollo, excluding special items | $ | (0.31 | ) | $ | (0.07 | ) | $ | — | $ | 0.38 | ||||||||||||
Diluted weighted average shares outstanding | 108,595 | 108,166 | 108,521 | 109,337 | ||||||||||||||||||
(1) During the first quarter of fiscal year 2016, we recorded $73.4 million of goodwill impairment charges. | ||||||||||||||||||||||
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Three Months Ended | Six Months Ended | ||||||||||||||
($ in thousands) |
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Adjusted EBITDA: | |||||||||||||||
University of Phoenix | $ | 19,560 | $ | 56,728 | $ | 112,019 | $ | 186,342 | |||||||
Apollo Global | (15,643 | ) | (17,932 | ) | (9,153 | ) | (11,710 | ) | |||||||
Other | (16,810 | ) | (20,940 | ) | (32,656 | ) | (38,304 | ) | |||||||
Adjusted EBITDA | (12,893 | ) | 17,856 | 70,210 | 136,328 | ||||||||||
Less: Special items before income taxes (see above table) | 42,282 | 24,372 | 144,083 | 46,339 | |||||||||||
Less: Depreciation and amortization | 26,754 | 32,105 | 54,148 | 65,736 | |||||||||||
Less: Interest expense, net of interest income | 1,049 | 999 | 1,586 | 2,072 | |||||||||||
Less: (Benefit from) provision for income taxes | (19,842 | ) | (13,924 | ) | (7,603 | ) | 13,130 | ||||||||
Plus: Loss from discontinued operations, net of tax | — | (10,442 | ) | (3,259 | ) | (12,720 | ) | ||||||||
Net loss, as reported | $ | (63,136 | ) | $ | (36,138 | ) | $ | (125,263 | ) | $ | (3,669 | ) | |||
Use of Non-GAAP Financial Information
The Company’s non-GAAP financial measures are intended to supplement,
but not substitute for, the most directly comparable GAAP measures.
Management uses, and chooses to disclose to investors, these non-GAAP
financial measures because: (i) such measures provide an additional
analytical tool to clarify the Company’s results from operations and
help to identify underlying trends in its results of operations; (ii) as
to the non-GAAP earnings measures, such measures help compare the
Company’s performance on a consistent basis across time periods; and
(iii) these non-GAAP measures are employed by the Company’s management
in its own evaluation of performance and are utilized in financial and
operational decision-making processes, such as budgeting and
forecasting. Exclusion of items in the non-GAAP presentation should not
be construed as an inference that these items are unusual, infrequent or
non-recurring. Other companies, including other companies in the
education industry, may calculate non-GAAP financial measures
differently, limiting their usefulness as a comparative measure across
companies.
“Adjusted EBITDA” is earnings from continuing operations before interest
expense and interest income, income taxes, depreciation and
amortization, and special items. It is intended to provide an indicator
of our operating performance across time periods.
Forward-Looking Statements Safe Harbor
Statements about Apollo Education Group and its business in this release
which are not statements of historical fact, including statements
regarding Apollo Education Group’s future strategy and plans and
commentary regarding future results of operations and prospects, are
forward-looking statements and are subject to the Safe Harbor provisions
created by the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on current information and
expectations and involve a number of risks and uncertainties. Actual
plans implemented and actual results achieved may differ materially from
those set forth in or implied by such statements due to various factors,
including, without limitation: (i) the timing of the completion of the
previously announced pending merger transaction with AP VIII Queso
Holdings, L.P., an affiliate of Apollo Management VIII, L.P., which is a
fund managed by an affiliate of Apollo Global Management, LLC, an entity
unrelated to Apollo Education Group; (ii) the failure of the merger
counterparty to obtain the necessary equity financing to complete the
merger and the related transactions; (iii) the inability to complete the
merger due to the failure to obtain shareholder approval or the failure
to satisfy other conditions to completion of the merger, including
receipt of required regulatory approvals; (iv) the risk that regulatory
agencies impose restrictions, limitations, costs, divestitures or other
conditions in connection with providing regulatory approval of the
merger; (v) the outcome of pending or potential litigation or
governmental investigations; (vi) disruptions resulting from the
proposed merger making it more difficult for Apollo Education Group to
maintain relationships with its students, customers, employees,
suppliers and strategic partners; (vii) competitive responses to the
proposed merger; (viii) unexpected costs, liabilities, charges or
expenses resulting from the merger; (ix) the inability to obtain, renew
or modify permits in a timely manner, or comply with government
regulations; (x) the inability to retain key personnel of Apollo
Education Group or its subsidiaries; (xi) the occurrence of any event,
change or other circumstance that could give rise to the termination of
the merger agreement, including a termination of the merger agreement
under circumstances that could require Apollo Education Group to pay a
termination fee; (xii) unexpected expenses or other challenges in
integrating acquired businesses, student, consumer or regulatory impact
arising from consummation of such acquisitions, and unexpected changes
or developments in the acquired businesses; (xiii) diversion of
management’s attention from ongoing business concerns; (xiv) limitations
placed on Apollo Education Group’s ability to operate its business by
the merger agreement; (xv) the impact of increased competition from
traditional public universities and proprietary educational
institutions; (xvi) the impact of the initiatives to transform
University of Phoenix into a more-focused, higher-retaining and
less-complex institution, including the near-term impact on enrollment;
(xvii) the impact of Apollo Education Group’s ongoing restructuring and
cost-reduction initiatives; (xviii) impacts from actions taken by our
regulators that could affect University of Phoenix’s eligibility to
participate in or the manner in which it participates in U.
Contacts
Apollo Education Group, Inc.
Investor Relations Contact:
Beth
Coronelli, 312-660-2059
Media
Contact:
Media Relations Hotline, 602-254-0086