Apollo Group, Inc. provides higher education to working adults. The Company operates through its subsidiaries, The University of Phoenix, Inc., Institute for Professional Development, The College for Financial Planning Institutes Corporation and Western International University, Inc.

Apollo Group, Inc. fournit une éducation plus élevée aux adultes travaillants.  La compagnie opère par ses filiales, l'université de Phoenix, l'inc., l'institut pour le développement professionnel, l'université pour la planification financière Institutes Corporation et l'université internationale occidentale

http://www.apollogrp.edu

Apollo Group, Inc. Reports Fiscal 2007 Third Quarter Financial Results
    --  Revenue increases 12.2% year-over-year
    --  Degreed enrollments increase 12.2% year-over-year
    --  Operating margin of 27.7%
    --  Board of directors approves up to $500 million in share  repurchase
PHOENIX--(BUSINESS WIRE)--June 28, 2007--Apollo Group, Inc. (Nasdaq: APOL) ("Apollo Group" or the "Company") today reported fiscal 2007 financial results for the third quarter ended May 31, 2007. The Company also announced that its Board of Directors ("Board") authorized the repurchase of up to $500 million of Apollo Group Class A common stock. Under the program the Company may repurchase shares from time to time on the open market or in privately negotiated transactions. Apollo Group management will determine the timing and number of shares repurchased.
Third Quarter Fiscal 2007 Results of Operations
Net income was $131.4 million, or $0.75 per diluted share (174.6 million weighted average shares outstanding), compared to $131.5 million, or $0.75 per diluted share (174.5 million weighted average shares outstanding) for three months ended May 31, 2007 and 2006, respectively. Before giving effect to share based compensation expense and special items of $16.5 million in the third quarter of 2007 and $6.8 million in the third quarter of 2006, earnings per fully diluted share were $0.81 in the third quarter of 2007, as compared to $0.78 in the third quarter 2006. (See the reconciliation of Generally Accepted Accounting Principles ("GAAP") financial information to non-GAAP financial information in the tables section of this press release.)
Consolidated revenues for the three months ended May 31, 2007, totaled $733.4 million, which represents a 12.2% increase over the third quarter of fiscal 2006. Total degreed enrollments grew by 12.2% year-over-year to 311,100.
Commenting on the quarter, Brian Mueller, president of Apollo Group, Inc., said, "Our fiscal third quarter is showing promising signs that the investments we made over the last 18 months are paying off. We are very pleased with the improvement we are seeing in enrollment and revenue growth, as well as in our operating margin. The continued progress is driven by further productivity improvements from new enrollment hires, enhanced retention strategies, efficiencies in our advertising spend and our branding campaign. New Degreed Enrollments increased 21.2% year-over-year. We are proud to have achieved double-digit revenue growth due to our strong enrollments and continued improvement in retention. As a reminder, over the long-term, we remain committed to our goal of mid-to-high single-digit revenue growth and low double-digit annual operating income and free cash flow growth."
Mueller continued, "Our liquidity and cash flow for the quarter were strong. As a result of this and other value considerations, we have increased the size of our existing share repurchase program to up to $500 million."
Instructional costs and services increased 13.1% or $37.3 million to $321.0 million, in the three months ended May 31, 2007, as compared to the three months ended May 31, 2006, primarily resulting from increases in employee-related expenses due to the higher enrollment numbers as well as an increase in bad debt expense which, as discussed last quarter, is primarily the result of a shift in the Company's student mix. As a percentage of revenue instructional costs and services were 43.8% versus 43.4% a year ago.
Selling and promotional expenses increased by $24.7 million to $162.9 million, a 17.9% increase, in the three months ended May 31, 2007, from the three months ended May 31, 2006, primarily resulting from increases in the number of enrollment counselors and an increase in advertising expenditures for both the Company's internet-based advertising campaign as well as the launch of a national televised branding campaign. As a percentage of revenue, selling and promotional expenses were 22.2% versus 21.1% a year ago.
General and administrative ("G&A") expenses increased by $15.7 million to $46.1 million, a 51.6% increase, in the three months ended May 31, 2007, from the three months ended May 31, 2006. As a percentage of revenues, G&A was 6.3% as compared to 4.7% in the prior year quarter. Before giving effect to special items primarily related to stock option investigation and restatement costs of $7.6 million, G&A expenses were $38.5 million in the three months ended May 31, 2007, or 5.2% of revenues.

Apollo Group, Inc. Appoints Gregory Cappelli as Executive Vice President, Global Strategy and Assistant to the Chairman 
PHOENIX--(BUSINESS WIRE)--April 2, 2007--Apollo Group, Inc. (Nasdaq: APOL) ("Apollo Group") announced that effective today, Gregory Cappelli has joined the Company as Executive Vice President of Global Strategy, and Assistant to the Executive Chairman, Dr. John Sperling. Mr. Cappelli will advise the Office of the Chairman on global strategy and corporate development, including overseeing Apollo Group's international expansion.
Mr. Cappelli, 39, has extensive experience in the for-profit education sector where he's been a leading research analyst for the past 13 years. Mr. Cappelli leaves Credit Suisse after 10 years of outstanding service, most recently as Managing Director and Senior Research Analyst where he founded the Credit Suisse Global Services Team. In that capacity, Mr. Cappelli led a team of analysts providing comprehensive coverage for some 100 companies representing a broad cross-section of the services economy. "We are extremely pleased to be adding one of the most well-rounded and talented individuals in the for-profit education space to our management team," said Dr. John Sperling, Executive Chairman of Apollo Group. "Greg brings a unique set of skills to our company including his analytical ability, and broad based knowledge of the sector, globally." Before joining Credit Suisse, Mr. Cappelli was Vice President and Senior Research Analyst with ABN AMRO. He holds a bachelor's degree in Economics from Indiana University and a master's degree in business administration from the Brennan School of Business at Dominican University.

Apollo Group, Inc. Announces Board Member Resignation 
PHOENIX--(BUSINESS WIRE)--March 15, 2007--Apollo Group, Inc. (Nasdaq:APOL) today announced Daniel D. Diethelm, 43, has resigned from the Company's Board of Directors. Mr. Diethelm was a member of the Board's Special Committee which investigated and reported on the Company's stock option practices. "Dan Diethelm put in a lot of time and effort to help Apollo Group complete its duties with respect to the options investigation," said Brian Mueller, Apollo Group President. "Since the investigation by the special committee of the board has concluded, Dan has determined this would be an appropriate time to resign from his duties. We want to thank him for his service during a critical period of time for us."

Apollo Group, Inc. Appoints New Board Member 
PHOENIX--(BUSINESS WIRE)--Jan. 18, 2007--Apollo Group, Inc. (Nasdaq:APOL) announced today the appointment of James R. Reis, executive vice president of GAINSCO, INC., to its Board of Directors. Mr. Reis will also serve on the Board's Audit Committee.

Apollo Group, Inc. Receives Expected Staff Determination Letter 
PHOENIX--(BUSINESS WIRE)--Jan. 18, 2007--Apollo Group, Inc. (Nasdaq:APOL) announced today that, as expected, it has received a further Nasdaq Staff Determination letter. The Company was unable to file its Quarterly Report on Form 10-Q for the first quarter ended November 30, 2006 by the required filing date of January 9, 2007, because it has not yet completed the restatement of its financial statements following receipt by the Company's Board of Directors (the "Board"), on December 8, 2006, of the Special Committee's final factual findings of its stock option investigation. The Company, as a result, received a Nasdaq Staff Determination notice, dated January 11, 2007, indicating that the Company is not in compliance with the filing requirements for continued listing as set forth in Marketplace Rule 4310(c)(14). The notice, which the Company expected, was issued in accordance with standard Nasdaq procedures. Although the Company is diligently working on the restatement of its financial statements, the Company at this time is unable to predict when such restatement will be completed

Apollo Group, Inc. Announces Acquisition of Insight Schools 
PHOENIX--(BUSINESS WIRE)--Jan. 10, 2007--Apollo Group, Inc. (Nasdaq:APOL) announced that it has acquired Insight Schools, an innovator in online high school education
Insight Schools, based in Portland, Oregon, is led by a management team with significant experience in the area of K-12 online education. The company was founded by Mr. Keith Oelrich, whose prior experience includes positions as President and CEO of KC Distance Learning (KCDL) and Apex Learning. Mr. Oelrich and his team are remaining with the company under the new ownership. Apollo acquired Insight Schools in October of 2006