PHOENIX--(BUSINESS WIRE)--Jan. 9, 2017--
Apollo Education Group, Inc. (NASDAQ: APOL) (“Apollo” or the “Company”)
today reported financial results for the three months ended November 30,
2016, with first quarter revenue of $484.5 million and diluted earnings
per share from continuing operations of $0.04, or $0.14 excluding
special items.
“We continue to make steady progress on our transformational plan at
University of Phoenix with improvement in both student persistence and
enrollment,” said Greg Cappelli, Chief Executive Officer of Apollo
Education Group. “This quarter, we also made additional headway in
adjusting the organization’s cost base and continued to experience
growth at Apollo Global. As we execute on our long-term strategic plan,
we are committed to achieving successful student outcomes and ensuring
we remain a focused and trusted provider of higher education for working
adults.”
First Quarter 2017 Results of Operations
Apollo Education Group reported net revenue for the first quarter 2017
of $484.5 million, compared to $586.0 million for the first quarter
2016. First quarter 2017 University of Phoenix New Degreed Enrollment
was 20,200 and Degreed Enrollment was 135,900, compared to New Degreed
Enrollment of 24,500 and Degreed Enrollment of 176,900 for the prior
year first quarter. Operating income for the first quarter 2017 was $8.4
million, compared to an operating loss of $45.2 million for the first
quarter 2016. Income from continuing operations attributable to Apollo
Education Group for the first quarter 2017 was $4.1 million, or $0.04
per share, compared to a loss of $57.5 million, or $0.53 per share, for
the prior year first quarter.
Excluding special items, income from continuing operations attributable
to Apollo Education Group for the first quarter 2017 was $15.3 million,
or $0.14 per share, compared to $33.1 million, or $0.31 per share, for
the first quarter 2016. Adjusted EBITDA was $52.3 million for the first
quarter 2017 compared to $83.1 million for the first quarter 2016.
(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 November 30, 2016, the Company’s unrestricted cash and cash
equivalents and marketable securities (including current and noncurrent)
totaled $641.6 million, compared to $680.7 million as of August 31,
2016. The decrease was primarily attributable to $32.4 million of
payments on borrowings and $20.9 million of capital expenditures, which
was partially offset by $16.5 million of cash provided by operations.
Total debt outstanding (including short-term borrowings and the current
portion of long-term debt) was $56.8 million as of November 30, 2016.
Business Outlook
Due to the pending merger transaction announced February 8, 2016, the
Company is not providing an updated financial outlook at this time.
Conference Call Information
In light of the pending merger, the Company will not be hosting an
investor conference call following the issuance of its fiscal year 2017
first quarter earnings press release.
About Apollo Education Group, Inc.
Apollo Education Group, Inc. is a private education provider 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
adults 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.
|
Apollo Education Group, Inc. and Subsidiaries
|
|
Condensed Consolidated Statements of Operations
|
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
November 30,
|
|
(In thousands, except per share data)
|
|
|
2016
|
|
|
|
2015
|
|
|
Net revenue
|
|
$
|
484,499
|
|
|
$
|
586,021
|
|
|
Costs and expenses:
|
|
|
|
|
|
Instructional and student advisory
|
|
|
248,753
|
|
|
|
291,327
|
|
|
Marketing
|
|
|
90,967
|
|
|
|
93,802
|
|
|
Admissions advisory
|
|
|
26,588
|
|
|
|
34,188
|
|
|
General and administrative
|
|
|
51,325
|
|
|
|
67,445
|
|
|
Depreciation and amortization
|
|
|
26,854
|
|
|
|
27,394
|
|
|
Provision for uncollectible accounts receivable
|
|
|
13,930
|
|
|
|
15,313
|
|
|
Restructuring and impairment charges
|
|
|
15,365
|
|
|
|
97,823
|
|
|
Merger, acquisition and other related costs, net
|
|
|
2,313
|
|
|
|
3,978
|
|
|
Total costs and expenses
|
|
|
476,095
|
|
|
|
631,270
|
|
|
Operating income (loss)
|
|
|
8,404
|
|
|
|
(45,249
|
)
|
|
Interest income
|
|
|
1,087
|
|
|
|
919
|
|
|
Interest expense
|
|
|
(1,425
|
)
|
|
|
(1,456
|
)
|
|
Other loss, net
|
|
|
(644
|
)
|
|
|
(843
|
)
|
|
Income (loss) from continuing operations before income taxes
|
|
|
7,422
|
|
|
|
(46,629
|
)
|
|
Provision for income taxes
|
|
|
(4,223
|
)
|
|
|
(12,239
|
)
|
|
Income (loss) from continuing operations
|
|
|
3,199
|
|
|
|
(58,868
|
)
|
|
Loss from discontinued operations, net of tax
|
|
|
—
|
|
|
|
(3,259
|
)
|
|
Net income (loss)
|
|
|
3,199
|
|
|
|
(62,127
|
)
|
|
Net loss attributable to noncontrolling interests
|
|
|
871
|
|
|
|
1,362
|
|
|
Net income (loss) attributable to Apollo
|
|
$
|
4,070
|
|
|
$
|
(60,765
|
)
|
|
Earnings income (loss) per share - Basic:
|
|
|
|
|
|
Continuing operations attributable to Apollo
|
|
$
|
0.04
|
|
|
$
|
(0.53
|
)
|
|
Discontinued operations attributable to Apollo
|
|
|
—
|
|
|
|
(0.03
|
)
|
|
Basic income (loss) per share attributable to Apollo
|
|
$
|
0.04
|
|
|
$
|
(0.56
|
)
|
|
Earnings income (loss) per share - Diluted:
|
|
|
|
|
|
Continuing operations attributable to Apollo
|
|
$
|
0.04
|
|
|
$
|
(0.53
|
)
|
|
Discontinued operations attributable to Apollo
|
|
|
—
|
|
|
|
(0.03
|
)
|
|
Diluted income (loss) per share attributable to Apollo
|
|
$
|
0.04
|
|
|
$
|
(0.56
|
)
|
|
Basic weighted average shares outstanding
|
|
|
109,724
|
|
|
|
108,446
|
|
|
Diluted weighted average shares outstanding
|
|
|
110,186
|
|
|
|
108,446
|
|
|
|
|
Apollo Education Group, Inc. and Subsidiaries
|
|
Condensed Consolidated Balance Sheets
|
|
(Unaudited)
|
|
|
|
|
|
As of
|
|
|
|
November 30,
|
|
August 31,
|
|
($ in thousands)
|
|
|
2016
|
|
|
|
2016
|
|
|
ASSETS
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
517,274
|
|
|
$
|
464,024
|
|
|
Restricted cash and cash equivalents
|
|
|
124,871
|
|
|
|
142,170
|
|
|
Marketable securities
|
|
|
117,392
|
|
|
|
197,886
|
|
|
Accounts receivable, net
|
|
|
246,306
|
|
|
|
224,990
|
|
|
Prepaid taxes
|
|
|
25,058
|
|
|
|
19,287
|
|
|
Other current assets
|
|
|
50,788
|
|
|
|
40,368
|
|
|
Total current assets
|
|
|
1,081,689
|
|
|
|
1,088,725
|
|
|
Marketable securities
|
|
|
6,893
|
|
|
|
18,758
|
|
|
Property and equipment, net
|
|
|
321,345
|
|
|
|
332,702
|
|
|
Goodwill
|
|
|
265,692
|
|
|
|
272,699
|
|
|
Intangible assets, net
|
|
|
179,417
|
|
|
|
191,146
|
|
|
Deferred taxes
|
|
|
68,703
|
|
|
|
78,366
|
|
|
Other assets
|
|
|
31,504
|
|
|
|
30,510
|
|
|
Total assets
|
|
$
|
1,955,243
|
|
|
$
|
2,012,906
|
|
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND
SHAREHOLDERS’ EQUITY
|
|
Current liabilities:
|
|
|
|
|
|
Short-term borrowings and current portion of long-term debt
|
|
$
|
23,530
|
|
|
$
|
55,609
|
|
|
Accounts payable
|
|
|
63,360
|
|
|
|
59,640
|
|
|
Student deposits
|
|
|
145,018
|
|
|
|
178,160
|
|
|
Current deferred revenue
|
|
|
234,794
|
|
|
|
188,092
|
|
|
Accrued and other current liabilities
|
|
|
214,404
|
|
|
|
233,976
|
|
|
Total current liabilities
|
|
|
681,106
|
|
|
|
715,477
|
|
|
Long-term debt
|
|
|
33,251
|
|
|
|
35,186
|
|
|
Deferred taxes
|
|
|
15,479
|
|
|
|
16,323
|
|
|
Other long-term liabilities
|
|
|
156,488
|
|
|
|
169,326
|
|
|
Total liabilities
|
|
|
886,324
|
|
|
|
936,312
|
|
|
Commitments and contingencies
|
|
|
|
|
|
Redeemable noncontrolling interests
|
|
|
5,767
|
|
|
|
5,860
|
|
|
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
|
|
|
(3,857,845
|
)
|
|
|
(3,868,341
|
)
|
|
Retained earnings
|
|
|
5,018,613
|
|
|
|
5,024,528
|
|
|
Accumulated other comprehensive loss
|
|
|
(97,933
|
)
|
|
|
(85,957
|
)
|
|
Total Apollo shareholders’ equity
|
|
|
1,062,939
|
|
|
|
1,070,334
|
|
|
Noncontrolling interests
|
|
|
213
|
|
|
|
400
|
|
|
Total equity
|
|
|
1,063,152
|
|
|
|
1,070,734
|
|
|
Total liabilities, redeemable noncontrolling interests and
shareholders’ equity
|
|
$
|
1,955,243
|
|
|
$
|
2,012,906
|
|
|
|
|
Apollo Education Group, Inc. and Subsidiaries
|
|
Condensed Consolidated Statements of Cash Flows
|
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
November 30,
|
|
($ in thousands)
|
|
|
2016
|
|
|
|
2015
|
|
|
Operating activities:
|
|
|
|
|
|
Net income (loss)
|
|
$
|
3,199
|
|
|
$
|
(62,127
|
)
|
|
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
|
|
|
|
|
|
Share-based compensation
|
|
|
3,401
|
|
|
|
9,520
|
|
|
Depreciation and amortization
|
|
|
26,854
|
|
|
|
27,394
|
|
|
Accelerated depreciation included in restructuring
|
|
|
1,728
|
|
|
|
2,953
|
|
|
Impairment charges and losses on asset dispositions
|
|
|
266
|
|
|
|
73,393
|
|
|
Non-cash foreign currency loss, net
|
|
|
483
|
|
|
|
352
|
|
|
Provision for uncollectible accounts receivable
|
|
|
13,930
|
|
|
|
15,313
|
|
|
Deferred income taxes
|
|
|
8,708
|
|
|
|
3
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
Restricted cash and cash equivalents
|
|
|
16,673
|
|
|
|
(10,973
|
)
|
|
Accounts receivable
|
|
|
(39,851
|
)
|
|
|
(32,899
|
)
|
|
Prepaid taxes
|
|
|
(3,173
|
)
|
|
|
11,612
|
|
|
Other assets
|
|
|
(10,912
|
)
|
|
|
(9,915
|
)
|
|
Accounts payable
|
|
|
4,176
|
|
|
|
(14,690
|
)
|
|
Student deposits
|
|
|
(31,587
|
)
|
|
|
(4,880
|
)
|
|
Current deferred revenue
|
|
|
50,878
|
|
|
|
2,087
|
|
|
Accrued and other liabilities
|
|
|
(28,319
|
)
|
|
|
(26,010
|
)
|
|
Net cash provided by (used in) operating activities
|
|
|
16,454
|
|
|
|
(18,867
|
)
|
|
Investing activities:
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(20,872
|
)
|
|
|
(14,456
|
)
|
|
Purchases of marketable securities
|
|
|
(8,993
|
)
|
|
|
(109,715
|
)
|
|
Maturities of marketable securities
|
|
|
96,562
|
|
|
|
57,627
|
|
|
Sales of marketable securities
|
|
|
4,009
|
|
|
|
5,149
|
|
|
Other investing activities
|
|
|
152
|
|
|
|
(196
|
)
|
|
Net cash provided by (used in) investing activities
|
|
|
70,858
|
|
|
|
(61,591
|
)
|
|
Financing activities:
|
|
|
|
|
|
Payments on borrowings
|
|
|
(32,377
|
)
|
|
|
(3,448
|
)
|
|
Proceeds from borrowings
|
|
|
—
|
|
|
|
926
|
|
|
Share repurchases
|
|
|
(997
|
)
|
|
|
(517
|
)
|
|
Net cash used in financing activities
|
|
|
(33,374
|
)
|
|
|
(3,039
|
)
|
|
Effect of foreign exchange rates on cash and cash equivalents
|
|
|
(688
|
)
|
|
|
(442
|
)
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
53,250
|
|
|
|
(83,939
|
)
|
|
Cash and cash equivalents, beginning of period
|
|
|
464,024
|
|
|
|
503,705
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
517,274
|
|
|
$
|
419,766
|
|
|
Supplemental disclosure of cash flow and non-cash information:
|
|
|
|
|
|
Cash paid for income taxes, net of refunds
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Cash paid for interest
|
|
|
1,455
|
|
|
|
1,392
|
|
|
Restricted stock units vested and released
|
|
|
2,898
|
|
|
|
1,430
|
|
|
Credits received for tenant improvements
|
|
|
402
|
|
|
|
—
|
|
|
|
|
Apollo Education Group, Inc. and Subsidiaries
|
|
Segment Data and University of Phoenix Operating Metrics
|
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
November 30,
|
|
($ in thousands)
|
|
|
2016
|
|
|
|
2015
|
|
|
Net revenue:
|
|
|
|
|
|
University of Phoenix:
|
|
|
|
|
|
Degree seeking gross revenues(1)
|
|
$
|
400,384
|
|
|
$
|
523,590
|
|
|
Less: Discounts and other
|
|
|
(54,823
|
)
|
|
|
(70,468
|
)
|
|
Degree seeking net revenues(1)
|
|
|
345,561
|
|
|
|
453,122
|
|
|
Other revenues
|
|
|
8,733
|
|
|
|
9,495
|
|
|
Total University of Phoenix
|
|
|
354,294
|
|
|
|
462,617
|
|
|
Apollo Global
|
|
|
121,246
|
|
|
|
115,332
|
|
|
Other
|
|
|
8,959
|
|
|
|
8,072
|
|
|
Net revenue
|
|
$
|
484,499
|
|
|
$
|
586,021
|
|
|
Operating income (loss):
|
|
|
|
|
|
University of Phoenix
|
|
$
|
32,550
|
|
|
$
|
(17,504
|
)
|
|
Apollo Global
|
|
|
(3,643
|
)
|
|
|
(2,335
|
)
|
|
Other
|
|
|
(20,503
|
)
|
|
|
(25,410
|
)
|
|
Operating income (loss)
|
|
$
|
8,404
|
|
|
$
|
(45,249
|
)
|
|
(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:
|
|
(Rounded to the nearest hundred, except per degreed enrollment)
|
|
Three Months Ended
November 30,
|
|
|
2016
|
|
2015
|
|
%
Change
|
|
Degreed Enrollment(1), (2)
|
|
|
135,900
|
|
|
176,900
|
|
(23.2)%
|
|
New Degreed Enrollment(3)
|
|
|
20,200
|
|
|
24,500
|
|
(17.6)%
|
|
Average Degreed Enrollment(4)
|
|
|
139,200
|
|
|
183,800
|
|
(24.3)%
|
|
Degree seeking net revenues per degreed enrollment
|
|
$
|
2,521
|
|
$
|
2,561
|
|
|
|
(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) As described in Footnote 1, Degreed Enrollment
includes students who attended a credit bearing course during the
quarter and had not graduated as of the end of the quarter. The
proportion of students included in Degreed Enrollment who have
completed their academic work but not yet formally graduated
(“academically complete students”) increased beginning in the
third quarter of fiscal year 2016 compared to the prior year
periods due to changes in the manner in which graduation
applications are processed. We estimate that the number of
academically complete students reflected in this increase was
approximately 2,000 - 3,000 for both the third and fourth quarters
of fiscal year 2016, and 500 - 1,500 for the first quarter of
fiscal year 2017.
|
|
(3) 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.
|
|
(4) Represents the average of quarterly Degreed
Enrollment from the beginning to the end of the respective periods.
|
|
|
|
Apollo Education Group, Inc. and Subsidiaries
|
|
Reconciliation of GAAP Financial Information to Non-GAAP
Financial Information
|
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
November 30,
|
|
(In thousands, except per share data)
|
|
|
2016
|
|
|
|
2015
|
|
|
Net income (loss) attributable to Apollo, as reported
|
|
$
|
4,070
|
|
|
$
|
(60,765
|
)
|
|
Less: Loss from discontinued operations, net of tax
|
|
|
—
|
|
|
|
(3,259
|
)
|
|
Income (loss) from continuing operations attributable to Apollo
|
|
|
4,070
|
|
|
|
(57,506
|
)
|
|
Special items:
|
|
|
|
|
|
Restructuring and impairment charges(1)
|
|
|
15,365
|
|
|
|
97,823
|
|
|
Merger, acquisition and other related costs, net
|
|
|
2,313
|
|
|
|
3,978
|
|
|
Special items before income taxes
|
|
|
17,678
|
|
|
|
101,801
|
|
|
Less: income tax effects of special items
|
|
|
(6,411
|
)
|
|
|
(11,157
|
)
|
|
Special items, net of income taxes
|
|
|
11,267
|
|
|
|
90,644
|
|
|
Income from continuing operations attributable to Apollo, excluding
special items
|
|
$
|
15,337
|
|
|
$
|
33,138
|
|
|
Diluted income (loss) per share from continuing operations
attributable to Apollo, as reported
|
|
$
|
0.04
|
|
|
$
|
(0.53
|
)
|
|
Diluted income per share from continuing operations attributable to
Apollo, excluding special items
|
|
$
|
0.14
|
|
|
$
|
0.31
|
|
|
(1) During the first quarter of fiscal year 2016, we
recorded $73.4 million of goodwill impairment charges.
|
|
|
|
Reconciliation of Adjusted EBITDA to Net
Income (Loss)
|
|
|
|
Three Months Ended
|
|
|
|
November 30,
|
|
($ in thousands)
|
|
|
2016
|
|
|
|
2015
|
|
|
Adjusted EBITDA:
|
|
|
|
|
|
University of Phoenix
|
|
$
|
53,380
|
|
|
$
|
92,459
|
|
|
Apollo Global
|
|
|
7,743
|
|
|
|
6,490
|
|
|
Other
|
|
|
(8,831
|
)
|
|
|
(15,846
|
)
|
|
Adjusted EBITDA
|
|
|
52,292
|
|
|
|
83,103
|
|
|
Less: Special items before income taxes (see above table)
|
|
|
17,678
|
|
|
|
101,801
|
|
|
Less: Depreciation and amortization
|
|
|
26,854
|
|
|
|
27,394
|
|
|
Less: Interest expense, net of interest income
|
|
|
338
|
|
|
|
537
|
|
|
Less: Provision for income taxes
|
|
|
4,223
|
|
|
|
12,239
|
|
|
Plus: Loss from discontinued operations, net of tax
|
|
|
—
|
|
|
|
(3,259
|
)
|
|
Net income (loss), as reported
|
|
$
|
3,199
|
|
|
$
|
(62,127
|
)
|
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. (“Queso”), a subsidiary of funds affiliated with Apollo
Management VIII, L.P., which is an affiliate of Apollo Global
Management, LLC and Socrates Merger Sub, Inc., a subsidiary of Queso,
none of which is, or has ever been, affiliated with Apollo Education
Group; (ii) the inability to complete the merger due to the failure to
satisfy customary and other conditions to completion of the merger,
including receipt of required regulatory approvals; (iii) the risk that
regulatory agencies impose restrictions, limitations, costs,
divestitures or other conditions in connection with providing regulatory
approval of the merger; (iv) the outcome of pending or potential
litigation or governmental investigations; (v) 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; (vi) competitive responses to the
proposed merger; (vii) unexpected costs, liabilities, charges or
expenses resulting from the merger; (viii) the inability to obtain,
renew or modify permits in a timely manner, or comply with government
regulations; (ix) the impact of the U.S. Department of Education gainful
employment regulations on University of Phoenix enrollment and the
associated expenses we may incur in connection with any programs
rendered ineligible to participate in Title IV programs; (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.S. Federal
and state student financial aid programs, including the recent
requirement that all substantial changes be approved by the U.S.
Department of Education in advance; (xix) further delay in University of
Phoenix’s pending recertification by the U.S. Department of Education
for participation in Title IV student financial aid programs, or any
limitations or qualifications imposed in connection with any
recertification; (xx) the impact of any reduction in financial aid
available to students, including active and retired military personnel,
due to the U.S. government deficit reduction proposals, debt ceiling
limitations, budget sequestration or otherwise; (xxi) changes in
regulation of the U.S. education industry and eligibility of proprietary
schools to participate in U.S. Federal student financial aid programs,
including without limitation the recently enacted regulations governing
discharge of student loans and requirements for state authorization;
(xxii) changes in University of Phoenix’s enrollment or student mix;
(xxiii) the impact on student enrollments of the announcement of the
proposed merger and general economic conditions; (xxiv) the impact of
third party claims that Apollo Education Group’s products and services
infringe their intellectual property rights; and (xxv) fluctuations in
non-U.S. currencies that could impact reported operating results of
foreign subsidiaries, including the recent significant fluctuations in
the British pound sterling associated with the U.K. referendum to exit
the European Union. For a discussion of the various factors that may
cause actual plans implemented and actual results achieved to differ
materially from those set forth in the forward-looking statements,
please refer to the risk factors and other disclosures contained in
Apollo Education Group’s Form 10-K for fiscal year 2016, filed with the
Securities and Exchange Commission (the “SEC”) on October 20, 2016 and
other filings with the SEC which are available at www.apollo.edu.
The cautionary statements referred to above also should be considered in
connection with any subsequent written or oral forward-looking
statements that may be issued by Apollo Education Group or persons
acting on Apollo Education Group’s behalf. Apollo Education Group
undertakes no obligation to publicly update or revise any
forward-looking statements for any facts, events, or circumstances after
the date hereof that may bear upon forward-looking statements.
Furthermore, Apollo Education Group cannot guarantee future results,
events, levels of activity, performance, or achievements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170109006315/en/
Source: Apollo Education Group, Inc.
Apollo Education Group, Inc.
Investor Relations Contact:
Beth
Coronelli, 312-660-2059
beth.coronelli@apollo.edu
or
Media
Contact:
Media Relations Hotline, 602-254-0086
media@apollo.edu
|
