Apollo Education Group: Difference between revisions

From Wikipedia, the free encyclopedia
Browse history interactively
← Previous editNext edit →
Content deleted Content added
VisualWikitext
GreenC bot (talk | contribs)
Bots
2,097,221 edits
Rescuing 1 sources and tagging 0 as dead. #IABot (v1.2.5)
Line 51: Line 51:
{{main | University of Phoenix}}
{{main | University of Phoenix}}


The [[University of Phoenix]] is a wholly owned subsidiary of the Apollo Education Group. The University of Phoenix is one of the largest higher education providers in North America.<ref name="WSJ2011">{{cite news|url=http://online.wsj.com/article/BT-CO-20111019-706464.html |work=The Wall Street Journal |title=Apollo Group 4Q Net Soars On Fewer Charges; Enrollment Falls |date=October 19, 2011 |deadurl=yes |archiveurl=https://web.archive.org/web/20111022004021/http://online.wsj.com/article/BT-CO-20111019-706464.html |archivedate=October 22, 2011 }}</ref> The university has more than 200 campuses worldwide and confers degrees in over 100 degree programs at the [[Associate degree|associate]], [[bachelor's]], [[master's]] and [[doctorate|doctoral]] levels.<ref name="largest">[http://www.azbiz.com/articles/2008/08/08/news/doc489c8e8b1ec58870093097.txt University of Phoenix provides growth opportunities for working adults] Lee Allen. Retrieved 18 September 2008.</ref> The University of Phoenix has an [[open admissions|open enrollment]] admission policy only requiring a high-school diploma, [[GED]], or an equivalent qualification.<ref>{{cite web|url=http://www.eduers.com/University/Arizona/University_of_Phoenix.html |title=University of Phoenix Admissions Profiles |publisher=Eduers.com |date= |accessdate=2010-09-11}}</ref> The school also provides associate or bachelor's degree applicants opportunity for advanced placement through its [[Recognition of prior learning|prior learning assessment]], through which, aside from previous coursework, college credit can come from experiential learning essays, corporate training, and certificates or licenses.<ref>http://beta.phoenix.edu/admissions/prior_learning_assessment.html{{Dead link|date=November 2010}}</ref>
The [[University of Phoenix]] is a wholly owned subsidiary of the Apollo Education Group. The University of Phoenix is one of the largest higher education providers in North America.<ref name="WSJ2011">{{cite news|url=http://online.wsj.com/article/BT-CO-20111019-706464.html |work=The Wall Street Journal |title=Apollo Group 4Q Net Soars On Fewer Charges; Enrollment Falls |date=October 19, 2011 |deadurl=yes |archiveurl=https://web.archive.org/web/20111022004021/http://online.wsj.com/article/BT-CO-20111019-706464.html |archivedate=October 22, 2011 }}</ref> The university has more than 200 campuses worldwide and confers degrees in over 100 degree programs at the [[Associate degree|associate]], [[bachelor's]], [[master's]] and [[doctorate|doctoral]] levels.<ref name="largest">[http://www.azbiz.com/articles/2008/08/08/news/doc489c8e8b1ec58870093097.txt University of Phoenix provides growth opportunities for working adults] Lee Allen. Retrieved 18 September 2008.</ref> The University of Phoenix has an [[open admissions|open enrollment]] admission policy only requiring a high-school diploma, [[GED]], or an equivalent qualification.<ref>{{cite web|url=http://www.eduers.com/University/Arizona/University_of_Phoenix.html |title=University of Phoenix Admissions Profiles |publisher=Eduers.com |date= |accessdate=2010-09-11 |deadurl=yes |archiveurl=https://web.archive.org/web/20100124165630/http://www.eduers.com:80/University/Arizona/University_of_Phoenix.html |archivedate=2010-01-24 |df= }}</ref> The school also provides associate or bachelor's degree applicants opportunity for advanced placement through its [[Recognition of prior learning|prior learning assessment]], through which, aside from previous coursework, college credit can come from experiential learning essays, corporate training, and certificates or licenses.<ref>http://beta.phoenix.edu/admissions/prior_learning_assessment.html{{Dead link|date=November 2010}}</ref>


According to ''USA Today'', the University of Phoenix's Detroit campus has a graduation rate of 10%, but a student loan default rate of 26.4%.<ref>{{cite news| url=http://www.usatoday.com/story/news/nation/2013/07/02/college-default-rates-higher-than-grad-rates/2480295/ | work=USA Today | title=College default rates higher than grad rates | date=2 July 2013}}</ref>
According to ''USA Today'', the University of Phoenix's Detroit campus has a graduation rate of 10%, but a student loan default rate of 26.4%.<ref>{{cite news| url=http://www.usatoday.com/story/news/nation/2013/07/02/college-default-rates-higher-than-grad-rates/2480295/ | work=USA Today | title=College default rates higher than grad rates | date=2 July 2013}}</ref>

Revision as of 12:17, 16 October 2016

This article is about the educational services company. For the private equity firm, see Apollo Management. For the group of near-earth asteroids, see List of Apollo asteroids.
Apollo Education Group, Inc.
Company typePublic
Nasdaq: APOL
S&P 400 Component
IndustryFor-profit education
Founded1973
FounderJohn Sperling
HeadquartersPhoenix, Arizona, U.S.
Key people
Peter Sperling
(Chairman)
Gregory Cappelli
(CEO)
Mitch Bowling
(COO)
RevenueDecrease $ 3.6 billion (FY 2013)[1]
Decrease $ 427 million (FY 2013)[1]
Decrease $ 249 million (FY 2013)[1]
Total assetsDecrease $ 3.0 billion (FY 2013)[1]
Total equityIncrease $ 1.1 billion (FY 2013)[1]
Number of employees
44,000 (part and full-time) (August 2013)[1]
SubsidiariesApollo Global
Axia College
BPP Holdings
Carnegie Learning
College for Financial Planning
Institute for Professional Development
Meritus University
University for the Arts, Sciences, and Communication
Universidad Latinoamericana
University of Phoenix
Western International University
Websitewww.apollo.edu

Apollo Education Group, Inc. is an S&P 400 corporation based in the South Phoenix area of Phoenix, Arizona. Apollo Group, Inc., through its subsidiaries, owns several for-profit educational institutions.

The company owns and operates four higher-learning institutions: the University of Phoenix, Western International University, Axia College, and the College for Financial Planning. As of November 2013, the combined enrollment of all the universities was approximately 269,000 students.[1] Of these, nearly 90% attend the University of Phoenix, which Apollo describes as "the nation's largest regionally accredited private university".[2]

Additionally, Apollo Education Group, Inc. is the owner of BPP Holdings in the United Kingdom. It formed a joint venture with Carlyle Group, called Apollo Global, to make international acquisitions.[3] Apollo also purchased UNIACC college in Santiago, Chile, and ULA college in Mexico.[4]

On May 8, 2016, the company announced its sale to a group of private investors for $1.14 billion

Founding

Apollo Education Group, Inc. was founded in 1973 by John Sperling.[5]

Financial performance

Corporate revenues for the year ending August 31, 2005 were $2.251 billion.[6]

As of 5 October 2011, Apollo Group had a market capitalization of $5.36 billion and a price-to-earnings ratio of 13.22.[7]

The Apollo Group announced quarterly results on 30 June 2011. The company reported $1.45 in earnings per share for the previous quarter, exceeding the Thomson Reuters estimate of $1.33 by $0.12. Apollo Group's quarterly revenue was down 7.6% on a year-over-year basis.[8]

In March 2011 the Apollo Group sold its corporate headquarters in Arizona and leased it back in order to raise $170 million in cash. The deal with Cole Real Estate Investments included a 20-year lease requiring Apollo to remain in the complex.[9]"In our view, it does not change the view of the company. Apollo isn't hungry for cash: It carries little debt but generates $4 billion in revenue and has $650 million in net income and $1.5 billion in cash on its balance sheet," commented Peter Wahlstrom of Morningstar, an investment-research company.[10]

However, the revenue of the company continued to fall: in the fiscal year ending in August 31, 2011, the net revenue was $4.7 billion; in 2012, $4.2 billion; in 2013, $3.6 billion.[1] The operating income during this period fell from $956 million in 2011, to $676 million in 2012, to $427 million in 2013. the company attributed this to a decline in enrollment, with degreed enrollment declining from 380,000 in 2011, to 328,000 in 2012, to 269,000 in 2013.[11]

On May 6, 2016, the sharreholders of the company approved the sale of the firm for $1.14 billion to a group of private investors: [12]Najafi Companies , a Phoenix firm, the New York based Apollo Global Management and, the Vistria Group of Chicago . [13]The offer amounted to $10 per share, compared to its high of $89/share in 2009.

Schools and subsidiaries

University of Phoenix

Main article: University of Phoenix

The University of Phoenix is a wholly owned subsidiary of the Apollo Education Group. The University of Phoenix is one of the largest higher education providers in North America.[14] The university has more than 200 campuses worldwide and confers degrees in over 100 degree programs at the associate, bachelor's, master's and doctoral levels.[15] The University of Phoenix has an open enrollment admission policy only requiring a high-school diploma, GED, or an equivalent qualification.[16] The school also provides associate or bachelor's degree applicants opportunity for advanced placement through its prior learning assessment, through which, aside from previous coursework, college credit can come from experiential learning essays, corporate training, and certificates or licenses.[17]

According to USA Today, the University of Phoenix's Detroit campus has a graduation rate of 10%, but a student loan default rate of 26.4%.[18]

Western International University

Western International University (West) is a university offering online programs for adult learners. Founded in 1978, West offers associate, bachelor and master degree programs to approximately 1,374 students (Fall 2014). West's mission is to provide a broad educational foundation, with a focus on business and technology, designed to prepare students for leadership positions in a dynamic, global marketplace. West is located in Tempe, Arizona and offers online education through its virtual campus.

Apollo Global

Apollo Group has formed Apollo Global to manage and form subsidiaries, assets, and holdings overseas. As part of their first acquisitions, Apollo Global acquired Universidad de Artes, Ciencias y Comunicacion 'UNIACC' in Chile as well as the now defunct Meritus University in Canada.[3][19]

Apollo Global is a joint venture between the Apollo Group and the Carlyle Group. The two partners invested $1 billion in Apollo Global. The Apollo Group invested roughly $801 million and owns 80.1% of the new company. Carlyle invested $199 million and controls the remaining shares. Apollo Global replaced Apollo International.[20][21]

BPP Holdings

Main articles: BPP Holdings and BPP University

BPP Holdings is a holding company of the United Kingdom-based provider of professional and academic education. The Company is divided into BPP Learning Media, BPP Professional Education and BPP University. BPP University is a United Kingdom degree-awarding body with four schools: BPP Business School, BPP Law School, BPP School of Health and BPP School of Foundation and English Language Studies. Apollo Global acquired BPP Holdings (which includes BPP University) in the United Kingdom for $607 million in July 2009.[22]

Western International University, formerly a direct subsidiary of the Apollo Group was transferred to Apollo Global in April 2010. The Apollo Group says that the transfer of Western International University to Apollo Global would allow it to offer its degrees internationally on a more successful basis. The transfer included a capital contribution from Apollo Global's minority shareholder, the Carlyle Group.[23]

Meritus University

Main article: Meritus University

Apollo Group owned and operated Meritus University in Canada.[24] On January 24, 2011, citing how "enrollment will continue to be insufficient to sustain the required quality academic and student service infrastructure we and our students demand," Meritus University announced its closure, with their last classes taking place on March 14, 2011.[25]

Universidad de Artes, Ciencias y Comunicacion

Main article: University for the Arts, Sciences, and Communication

University for the Arts, Sciences, and Communication, Chile.[26]

Universidad Latinoamericana, Mexico

Main article: Universidad Latinoamericana

The Universidad Latinoamericana in Mexico was acquired by the Apollo Group in 2007.[27]

Open Colleges, Australia

Main article: Open Colleges

Open Colleges in Australia was acquired for a 70% share agreement by the Apollo Group in 2013.[28]

Bridge School of Management

Main article: Bridge School of Management

Milpark Education

Main article: Milpark Education

Carnegie Learning

Main article: Carnegie Learning
Carnegie Learning Logo

Carnegie Learning is a publisher of math curricula for middle school, high school, and post-secondary students. The company uses a blended approach, with a textbook and software (called Cognitive Tutor) for each subject. The company also produces products for the homeschool and tutoring markets. Based in Pittsburgh, PA, Carnegie Learning was founded by cognitive science researchers from Carnegie Mellon University in conjunction with veteran mathematics teachers.

All of the Cognitive Tutor curricula are based on extensive scientific research from Carnegie Mellon University, along with field tests in schools throughout the United States. The Cognitive Tutors are based on the ACT-R theory of learning, memory and performance. The Tutors themselves were developed using an empirical testing process.[29]

Apollo Group announced in August 2011 a $75 million deal to buy Carnegie Learning along with a separate agreement to acquire related technology from CMU for $21.5 million, to be paid over 10 years.[30]

Insight Schools

Insight Schools is an online high school offering classes from 9th to 12th grade. Insight both ran high schools for school districts and operated online schools in several U.S. states.[31] Apollo Group acquired Insight Schools in 2007; in 2011 Apollo Group sold Insight Schools to Kaplan, Inc. [32]

Aptimus Marketing

Aptimus is a full-service, in-house marketing agency for Apollo Group education institutions, including the University of Phoenix, Axia College, the Institute for Professional Development, Olympus High School, and Insight School.[33]

Orange Lutheran Online

Main article: Lutheran High School of Orange County

Lutheran High School of Orange County (LHSOC) licenses its name to the Apollo Group to offer online courses.[34]

The Iron Yard

On June 11, 2015, Apollo Education Group acquired a 62% interest in TIY Academy, LLC (“The Iron Yard”), a provider of nondegree information technology bootcamp programs in the United States, for $15.9 million.[35]

Lawsuits and financial reporting

See also: University of Phoenix - Governmental lawsuits and investigations

After a separate investigation in 2004, the Apollo Group paid about $10 million in fines to the U.S. Department of Education, which had criticised UoP's admissions practices: for example, recruiters were paid bonuses depending on the numbers they signed up.[36] "In 2004, a scathing report issued by the US Department of Education concluded that Phoenix, as The Chronicle of Higher Education put it, had a 'high-pressure sales culture' that intimidated recruiters who failed to meet targets and encouraged the enrollment of unqualified students — in short that it rewarded 'the recruiters who put the most "asses in classes"'. Apollo illegally withheld the report, but it was leaked and the group's value on the stock market crashed. A suit was brought alleging that its management had 'disseminated materially false and misleading financial statements in an effort to inflate its stock price and attract investors'."[37]

"In 2006, the company's controller and chief accounting officer resigned amid allegations that the books had been cooked; in 2007, the Nasdaq Listing and Hearing Review Council threatened to withdraw Apollo's listing from the stock exchange."[37]

In January 2008, the above stock-price suit was decided. Apollo was found liable for misleading investors by failing to disclose the Department of Education report that criticized the University of Phoenix's recruiting practices. The jury awarded the shareholders $280 million in damages.[38][37] The trial judge vacated the verdict and found for the defendants,[39] but the Ninth Circuit reinstated the verdict.[40][41][42] The U.S. Supreme Court declined to hear Apollo's appeal of the verdict.[43][44][37] The case ultimately resolved with Apollo being liable for $145 million; the reported $280 million figure may have been an error because the jury's award was for $5.55 per share.[45][46]

In November 2008, Apollo paid $1.89 million to settle a religious discrimination class action without admitting wrongdoing. The Equal Employment Opportunity Commission had brought the claim on behalf of non-Mormon employees of University of Phoenix Online. Under the settlement, University of Phoenix Online agreed to prohibit favoritism toward the Church of Jesus Christ of Latter-day Saints.[47]

In July 2015, Apollo announced the Federal Trade Commission (FTC) was investigating UoP for unfair business practices; "The company must hand over documents regarding matters that include its marketing, tuition, billing, accreditation, and military recruitment practices going back as far as 2011."[48] In January 2016, the FTC filed suit against Apollo and University of Phoenix.[49] The court ordered Apollo and UoP to comply with the FTC's civil investigative demands.[50]

References

  1. ^ a b c d e f g h "APOL - Aug 31 2013 - 10-K". Retrieved 16 July 2015.
  2. ^ Apollo Group Annual Report 2004
  3. ^ a b "News Release - Apollo Group". Retrieved 16 July 2015.
  4. ^ "Apollo Group Buys University in Chile". February 20, 2008. Retrieved 10 June 2013. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  5. ^ [1]
  6. ^ Apollo Group 2005 annual report
  7. ^ Staff (5 October 2011). "Apollo Group (APOL) Shares Upgraded to a "Outperform" Rating by Credit Suisse (CS) Analysts". American Banking and Market News.
  8. ^ Staff (8 July 2011). "Analysts Weekly Ratings Changes for Apollo Group, Inc. (NASDAQ: APOL)". American Banking and Market News.
  9. ^ Jahna Berry and Ginger Rough (15 April 2011). "Apollo threatens to move workers". The Arizona Republic (Phoenix).
  10. ^ Jahna Berry and J. Craig Anderson (31 March 2011). "Apollo sells its corporate HQ, signs leaseback deal". Arizona Business Gazette. Retrieved 10 June 2013. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  11. ^ Goldie Blumenstyk, "Apollo Group Plans to Lay Off 500, as Does Education Management Corp." Chronicle of Higher Education Oct 23, 2013 [2].
  12. ^ Nick DeSantis "Shareholders Approve $1.14-Billion Sale of U. of Phoenix Parent" Chronicle of Higher Education May 6, 2016 [3] accessed May 13,2016
  13. ^ R. J. Hansen "University of Phoenix investers OK sale to private backers" Arizona Republic May 9, 2014 [4] accessed May 13,2016
  14. ^ "Apollo Group 4Q Net Soars On Fewer Charges; Enrollment Falls". The Wall Street Journal. October 19, 2011. Archived from the original on October 22, 2011. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  15. ^ University of Phoenix provides growth opportunities for working adults Lee Allen. Retrieved 18 September 2008.
  16. ^ "University of Phoenix Admissions Profiles". Eduers.com. Archived from the original on 2010-01-24. Retrieved 2010-09-11. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  17. ^ http://beta.phoenix.edu/admissions/prior_learning_assessment.html[dead link]
  18. ^ "College default rates higher than grad rates". USA Today. 2 July 2013.
  19. ^ "News Release - Apollo Group". Retrieved 16 July 2015.
  20. ^ "News Release - Apollo Group". Retrieved 16 July 2015.
  21. ^ "Apollo Goes Global". Retrieved 16 July 2015.
  22. ^ Ross Sorkin, Andrew (31 July 2009). "Apollo Pays $607 Million for BPP of London". The New York Times. Retrieved 2009-08-06.
  23. ^ "Apollo Global Expands University Network with Addition of Western International University" (Press release). Apollo Group. 19 April 2010.
  24. ^ Apollo Group News - The New York Times
  25. ^ "News Release - Apollo Group". Retrieved 16 July 2015.
  26. ^ Apollo Global Completes Acquisition of Universidad de Artes, Ciencias y Coumnicacion 'UNIACC' [5]
  27. ^ "News Release - Apollo Group". Retrieved 16 July 2015.
  28. ^ Apollo Global Agrees to Acquire Majority Interest in Open Colleges Australia
  29. ^ Koedinger, Kenneth R.; Corbett, Albert T.; Ritter, Steven; Shapiro, Lora J. (2000-06-22). "Carnegie Learning's Cognitive Tutor: Summary Research Results" (PDF). Carnegie Mellon University. In this paper, we describe various evaluations that demonstrate the power of the Cognitive Tutor solution. {{cite journal}}: Cite journal requires |journal= (help)
  30. ^ Kim Leonard (3 August 2011). "CMU software spinout acquired". Pittsburgh Tribune Review.
  31. ^ "News Release - Apollo Group". Retrieved 16 July 2015.
  32. ^ Blumenstyk, Goldie (February 25, 2011). "U. of Phoenix Parent Company Sells Its Online High-School Business to Kaplan". The Chronicle of Higher Education. Retrieved 29 December 2014.
  33. ^ "News Release - Apollo Group". Retrieved 16 July 2015.
  34. ^ Taylor, Dave. "University of Phoenix expands into religious teaching". http://intuitive.com/. Intuitive Systems. Retrieved 29 December 2014. {{cite web}}: External link in |website= (help)
  35. ^ "07/08/2016 10-Q for APOLLO EDUCATION GROUP INC". www.sec.gov. Retrieved 2016-07-30.
  36. ^ "Stefan Collini reviews 'Everything for Sale' by Roger Brown, with Helen Carasso and 'The Great University Gamble' by Andrew McGettigan · LRB 24 October 2013". London Review of Books. Retrieved 16 July 2015.
  37. ^ a b c d "Howard Hotson · For-Profit Universities · LRB 2 June 2011". London Review of Books. Retrieved 16 July 2015.
  38. ^ Jury Finds U of Phoenix Parent Company Liable for $280 Million Chronicle of Higher Education January 16, 2008
  39. ^ Judge James A. Teilborg, Order, page 10: "The evidence at trial was insufficient to support the jury's finding that the Flynn reports were corrective disclosures. Therefore, PABF failed to prove loss causation, and Apollo is entitled to judgment as a matter of law." http://securities.stanford.edu/filings-documents/1032/APOL04_01/200884_r02o_0402147.pdf
  40. ^ 23 June 2010, In re: Apollo Group Inc. Sercurities Litigation, Ninth Circuit, case 08-16971, http://cdn.ca9.uscourts.gov/datastore/memoranda/2010/06/23/08-16971.pdf
  41. ^ Thom Weidlich and Emily Heller, "Apollo Group’s $277.5 Million Jury Loss Is Reinstated on Appeal", Bloomberg, http://www.bloomberg.com/news/articles/2010-06-23/apollo-group-s-277-5-million-jury-loss-reinstated-by-u-s-appeals-court
  42. ^ http://www.tuckerellis.com/news_publications/publications-226
  43. ^ 10-649, http://www.supremecourt.gov/orders/courtorders/030711zor.pdf
  44. ^ Stohr, Greg (7 March 2011). "Apollo Group Rejected by High Court on $300 Million Award". Bloomberg.
  45. ^ Kevin LaCroix, 5 December 2011, "After Rare Trial and Lengthy Appeals, Apollo Group Securities Suit Finally Settles for $145 Million", http://www.dandodiary.com/2011/12/articles/securities-litigation/after-rare-trial-and-lengthy-appeals-apollo-group-securities-suit-finally-settles-for-145-million/
  46. ^ Stanford Law School, Securities Class Action Clearinghouse, http://securities.stanford.edu/filings-case.html?id=103281
  47. ^ Gilbertson, Dawn (November 5, 2008). "Religious bias lawsuit settled by Apollo Group". Arizona Republic. Retrieved January 24, 2016.
  48. ^ Lobosco, Katie (29 July 2015). "University of Phoenix is the latest college under investigation". CNN Money. Retrieved 2016-02-08.
  49. ^ Federal Trade Commission v. Apollo Education Group Incorporated and University of Phoenix, case number: 2:2016mc00002, filed January 12, 2016, Arizona District Court
  50. ^ https://consumermediallc.files.wordpress.com/2016/01/ftc-v-apollo-order.pdf

External links

Retrieved from "https://en.wikipedia.org/w/index.php?title=Apollo_Education_Group&oldid=744623949"