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Apollo Group Inc. Reports Operating Results (10-Q)

January 08, 2013 | About:
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10qk

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Apollo Group Inc. (APOL) filed Quarterly Report for the period ended 2012-11-30.

Apollo Group Inc has a market cap of $2.48 billion; its shares were traded at around $20.66 with a P/E ratio of 5.6 and P/S ratio of 0.5. Apollo Group Inc had an annual average earning growth of 19.8% over the past 10 years. GuruFocus rated Apollo Group Inc the business predictability rank of 4.5-star.
This is the annual revenues and earnings per share of APOL over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of APOL.


Highlight of Business Operations:

Our net revenue decreased $116.7 million, or 10.0%, in the first quarter of fiscal year 2013 compared to the first quarter of fiscal year 2012. The decrease was primarily attributable to University of Phoenix s 11.1% decrease in net revenue principally due to lower University of Phoenix enrollment, partially offset by selective tuition price and other fee changes. Refer to further discussion of net revenue by reportable segment below at Analysis of Operating Results by Reportable Segment.

Instructional and student advisory decreased $21.1 million, or 4.7% in the first quarter of fiscal year 2013 compared to the first quarter of fiscal year 2012, which represents a 220 basis point increase as a percentage of net revenue. The decrease in expense was principally attributable to lower costs that are more variable in nature such as faculty and certain student advisory functions, and a decrease in rent expense primarily attributable to our restructuring activities. Refer to Restructuring and Other Charges below. This was partially offset by the assessment of approximately $11 million of foreign indirect taxes in the first quarter of fiscal year 2013 associated with certain instructional materials.

Marketing decreased $2.7 million, or 1.6%, in the first quarter of fiscal year 2013 compared to the first quarter of fiscal year 2012, which represents a 130 basis point increase as a percentage of net revenue. The decrease in expense was principally attributable to lower advertising costs attributable in part to reducing our use of third-party operated Internet sites. This was partially offset by higher employee compensation costs primarily to support building relationships with employers.

Provision for uncollectible accounts receivable decreased $8.2 million, or 19.7%, in the first quarter of fiscal year 2013 compared to the first quarter of fiscal year 2012, which represents a 40 basis point decrease as a percentage of net revenue. The decrease was primarily attributable to reductions in gross accounts receivable principally resulting from lower University of Phoenix enrollment, and improved collection rates for aged receivables at University of Phoenix.

Operating income in our University of Phoenix segment decreased $49.7 million, or 17.0%, during the first quarter of fiscal year 2013 compared to the first quarter of fiscal year 2012. This decrease was primarily attributable to lower net revenue and an $11.3 million increase in restructuring charges. These factors were partially offset by decreases in costs that are more variable in nature, and a decrease in rent expense primarily due to our restructuring activities.

Read the The complete Report

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