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| Type | Public (NASDAQ: APOL) |
|---|---|
| Founded | 1973 |
| Headquarters |  Phoenix, Arizona, USA |
| Key people | John Sperling ,Founder |
| Industry | For-Profit Education |
| Market cap | $9.2 billion USD1 |
| Revenue | $2.723 billion(2007) |
| Employees | 14,500+1 |
| Website | www.apollogrp.edu |
Apollo Group, Inc. (NASDAQ: APOL) is an S&P 500 corporation based in the South Phoenix area of Phoenix, Arizona. Apollo Group, Inc., through its subsidiaries, provides higher education to working adults. The company offers associate, bachelor, master, and doctoral degrees in business, criminal justice, general studies, health administration, and information technology. It provides program development services, which include degree program design, curriculum development, market research, student recruitment, accounting, and administrative services to regionally accredited private colleges and universities. Apollo Group also offers its educational programs worldwide through its computerized educational delivery system. In addition, it provides other services, which include recruiting and training faculty, monitoring academic quality, and providing support services. Further, the company offers professional education programs, such as continuing education for teachers; custom training; environmental training; and other programs leading to certification in the areas of business, technology, and nursing. The company owns and operates four higher-learning institutions: the University of Phoenix, Western International University, Axia College (of University of Phoenix), the College for Financial Planning, the Institute for Professional Development, Insight Schools (Online Public High Schools for Washington, Wisconsin, and other locations), and Olympus High School. As of November 2005, the combined enrollment of the four U.S. domestic universities (UOPX, WIU, Axia, CFP) was approximately 315,350 students. Of these, nearly 90% attend the University of Phoenix, which Apollo describes as "the nation’s largest regionally accredited private university" [7].
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History
Apollo Group, Inc. was founded in 1973 in response to a gradual shift in higher education demographics from a student population dominated by youth to one in which approximately half the students are adults and over 80 percent of whom work full-time.citation needed Apollo's founder, John Sperling, believed that employment with a single employer would be replaced by lifelong learning and employment with a variety of employers.
Corporate revenues for the year ending August 31, 2005 were $2.251 billion2. As of August 31, 2005, Apollo Group offers its programs and services at 90 campuses in 39 states, Puerto Rico, Alberta, and British Columbia, as well as the Netherlands.
Recently, Charles "Chas" Edelstein became the Chief Executive Officer of Apollo Group, a position that remained vacant for many years. Chas joins Joe D'Amico, the Chief Financial Officer, President, and Treasurer as the two key executive officers. Chas joined Apollo Group in late 2008 from Credit Suisse.3
Joint venture with Carlyle Group
According to a news release October 22, 2007, Apollo Group and the Carlyle Group will form a $1 billion joint venture to invest in international education services which will be named Apollo Global. Apollo Group has committed approximately $801 million and will own 80.1% of the new company and Carlyle has committed approximately $199 million and will own 19.9%. Apollo Global will replace the existing Apollo International, a separate company in which Apollo had invested.45
Apollo Global
As part of their expanding global stature, 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 Meritus University in Canada.67
List of Subsidiaries
- University of Phoenix / Axia College
- Western International University
- College for Financial Planning
- Institute for Professional Development
- Insight Schools 8
- Olympus High School
- Orange Lutheran Online
- Meritus University, Canada 9
- Universidad de Artes, Cincias y Communicacion (UNIACC), Chile 10
- Universidad Latinoamericana S.C. (ULA), Mexico 11
- Aptimus Marketing 12
Controversy
The Apollo Group is the target of a securities-related lawsuit 13 alleging that the group disseminated false financial statements to stock purchasers. In January 2008, Apollo was found guilty of fraud for misleading investors by not disclosing a Department of Education report harshly critical of University of Phoenix's recruitment practices. The jury awarded the plaintiffs $280 million.14 The Nasdaq Listing and Hearings Review Council notified Apollo Group of possible delisting of its shares, and a New York law firm filed a class action lawsuit alleging that Apollo made false and misleading statements and omitted material information concerning the backdating of options granted by the company.15 In the midst of the Nasdaq probe, Apollo CFO Kenda Gonzalez and Controller Daniel E. Bachus resigned.15
Judge Overturns $280-Million Verdict Against the Apollo Group A federal judge has overturned a $280-million jury verdict against the Apollo Group in a shareholder lawsuit. The jury decided in January that the company had misled investors. In an order issued this week, however, Judge James A. Teilborg of the U.S. District Court for Arizona ruled that as a matter of law, the company was not responsible for their stock losses.
The case stems from the 2004 release of a U.S. Department of Education report and subsequent publicity about aggressive recruiting tactics undertaken by the University of Phoenix, a subsidiary of the Apollo Group. Five days after the department’s findings became public, a Wall Street stock analyst, Kelly Flynn, published her own reports assessing the case, sending the stock price down.
Investors who had held the company’s stock sued the Apollo Group, alleging that it had misled them by not disclosing information about the department’s review in a timely way. The company had maintained that the department’s report was inaccurate.
In his ruling, Judge Teilborg states that the Apollo Group “misled the market in various ways” concerning the report, but adds that the investors failed to prove under the law that the company’s actions caused them harm. He agreed with Apollo’s argument that Ms. Flynn’s reports did not include information that was not already public. The investors have said they plan to appeal. —Goldie Blumenstyk
http://chronicle.com/news/article/4938/judge-overturns-280-million-verdict-against-the-apollo-group
External links
News articles
- University of Phoenix fined record $9.8 million article on the Arizona Daily Star (of Pulitzer, Inc.)
- Trouble Grows for University Built on Profits, NY Times, February 11, 2007 by Sam Dillon
References
- ^ a b "Company Profile for Apollo Group Inc (APOL)". Retrieved on 2008-10-21.
- ^ Apollo Group 2005 annual report
- ^ Apollo Group Management [1]
- ^ Apollo Group and the Carlyle Group Form $1 Billion Joint Venture to Make Investments in the International Education Services Sector, Apollo website, October 27, 2007
- ^ Apollo Goes Global, Inside Higher Education, October 22, 2007, Doug Lederman
- ^ Apollo Group, Inc. Launches New University, May 13, 2008
- ^ Apollo Global Completes Acquisition of Universidad de Artes, Ciencias y Comunicacion 'UNIACC', April 1, 2008
- ^ Apollo Group, Inc. Announces Acquisition of Insight Schools [2]
- ^ Apollo Group, Inc. Launches New University [3]
- ^ Apollo Global Completes Acquisition of Universidad de Artes, Ciencias y Comunicacion 'UNIACC' [4]
- ^ Apollo Group Enters Mexican Education Market [5]
- ^ Apollo Group Completes Acquisition of Aptimus [6]
- ^ Judge Upholds Securities Suit Against Apollo Group, The Business Journal of Phoenix, October 20, 2005,
- ^ Jury Finds U of Phoenix Parent Company Liable for $280 Million Chronicle of Higher Education January 16, 2008
- ^ a b Apollo controller resigns on heels of CFO departure, The Business Journal of Phoenix, by Angela Gonzales, November 9, 2006
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- This page was last modified on 18 December 2008, at 05:13.
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