APOLLO EDUCATION GROUP INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - October 20, 2016

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Exhibit 99.1
Apollo Education Group, Inc.
News Release
Apollo Education Group, Inc. Reports Fourth Quarter and Fiscal Year 2016 Results
Phoenix, October 20, 2016 - Apollo Education Group, Inc. (NASDAQ: APOL) (“Apollo” or the “Company”) today reported financial results for the three months and fiscal year ended August 31, 2016, with fourth quarter revenue of $492.5 million and diluted earnings per share from continuing operations of $0.20, or $0.21 excluding special items.
“We operate in a challenging and competitive market, but we continue to execute on our strategic plan which is centered on achieving successful student outcomes,” said Greg Cappelli, Chief Executive Officer of Apollo Education Group. “During our fourth quarter, domestically, University of Phoenix made solid progress on its transformational plan, including student progression and satisfaction, new student enrollment trends, and a more efficient operating structure. Internationally, despite the impact of Brexit in the UK and other challenges, we continue to grow and now serve over 175,000 students at Apollo Global. At Apollo Education Group, we have worked to align our cost base with our enrollment levels, maintained a strong cash position, and continued our focus on improving efficiency to promote long-term organizational strength and the ability to reinvest. While we’re encouraged by our progress, we must sustain and build upon our current efforts in order to return to long-term growth.”
Fourth Quarter 2016 Results of Operations
Apollo Education Group reported net revenue for the fourth quarter 2016 of $492.5 million compared to $600.3 million for the fourth quarter 2015. Fourth quarter 2016 University of Phoenix New Degreed Enrollment was 19,400 and Degreed Enrollment was 142,500, compared to New Degreed Enrollment of 26,500 and Degreed Enrollment of 190,700 for the prior year fourth quarter. Operating income for the fourth quarter 2016 was $28.5 million, compared to an operating loss of $5.0 million for the fourth quarter 2015. Income from continuing operations attributable to Apollo Education Group for the fourth quarter 2016 was $22.3 million, or $0.20 per share, compared to a loss of $10.2 million, or $0.09 per share, for the prior year fourth quarter.
Excluding special items, income from continuing operations attributable to Apollo Education Group for the fourth quarter 2016 was $23.0 million, or $0.21 per share, compared to $18.7 million, or $0.17 per share, for the fourth quarter 2015. Adjusted EBITDA was $61.1 million for the fourth quarter 2016 compared to $54.1 million for the fourth quarter 2015. (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.)
Fiscal Year 2016 Results of Operations
Net revenue for fiscal year 2016 totaled $2.1 billion, compared to $2.6 billion in fiscal year 2015. In fiscal year 2016, University of Phoenix Average Degreed Enrollment was 165,600, compared to 214,500 for the prior year period. Operating loss for fiscal year 2016 was $65.6 million compared to operating income of $114.9 million in the prior year period. Loss from continuing operations attributable to Apollo Education Group for fiscal year 2016 was $74.9 million, or $0.69 per share, compared to income of $52.9 million, or $0.49 per share, for fiscal year 2015.
Excluding special items, income from continuing operations attributable to Apollo Education Group for fiscal year 2016 was $63.3 million, or $0.58 per share, compared to $120.5 million, or $1.10 per share, for



fiscal year 2015. Adjusted EBITDA was $222.0 million for fiscal year 2016 compared to $322.6 million for fiscal year 2015. (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 August 31, 2016, the Company’s unrestricted cash and cash equivalents and marketable securities (including current and noncurrent) totaled $680.7 million, compared to $794.2 million as of August 31, 2015. The decrease was primarily attributable to $97.3 million paid to acquire Career Partner GmbH and $73.1 million for capital expenditures, which was partially offset by $45.1 million of cash provided by operations.
Total debt outstanding (including short-term borrowings and the current portion of long-term debt) was $90.8 million as of August 31, 2016. Subsequent to August 31, 2016, the Company repaid the $30 million drawn on its principal revolving credit facility.
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 2016 fourth 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
August 31,
 
Year Ended
August 31,
(In thousands, except per share data)
2016
 
2015
 
2016
 
2015
Net revenue
$
492,479

 
$
600,291

 
$
2,101,850

 
$
2,566,277

Costs and expenses:
 
 
 
 
 
 
 
Instructional and student advisory
260,702

 
300,187

 
1,097,155

 
1,207,535

Marketing
75,629

 
118,639

 
354,757

 
487,759

Admissions advisory
28,162

 
41,849

 
122,662

 
209,768

General and administrative
53,857

 
67,447

 
246,157

 
273,662

Depreciation and amortization
27,460

 
29,598

 
109,938

 
125,303

Provision for uncollectible accounts receivable
12,070

 
16,833

 
55,882

 
59,205

Restructuring and impairment charges
9,479

 
29,078

 
159,057

 
81,800

Merger, acquisition and other related (credits) costs, net
(3,353
)
 
1,695

 
21,835

 
6,201

Litigation charge
—

 
—

 
—

 
100

Total costs and expenses
464,006

 
605,326

 
2,167,443

 
2,451,333

Operating income (loss)
28,473

 
(5,035
)
 
(65,593
)
 
114,944

Interest income
1,134

 
959

 
4,017

 
3,050

Interest expense
(1,725
)
 
(1,479
)
 
(6,722
)
 
(6,595
)
Other loss, net
(983
)
 
(1,276
)
 
(3,212
)
 
(5,756
)
Income (loss) from continuing operations before income taxes
26,899

 
(6,831
)
 
(71,510
)
 
105,643

Provision for income taxes
(6,033
)
 
(4,366
)
 
(9,829
)
 
(58,163
)
Income (loss) from continuing operations
20,866

 
(11,197
)
 
(81,339
)
 
47,480

Loss from discontinued operations, net of tax
(6,432
)
 
(8,279
)
 
(9,691
)
 
(23,185
)
Net income (loss)
14,434

 
(19,476
)
 
(91,030
)
 
24,295

Net loss attributable to noncontrolling interests
1,429

 
992

 
6,476

 
5,460

Net income (loss) attributable to Apollo
$
15,863

 
$
(18,484
)
 
$
(84,554
)
 
$
29,755

Earnings (loss) per share - Basic:
 
 
 
 
 
 
 
Continuing operations attributable to Apollo
$
0.20

 
$
(0.09
)
 
$
(0.69
)
 
$
0.49

Discontinued operations attributable to Apollo
(0.05
)
 
(0.08
)
 
(0.09
)
 
(0.21
)
Basic income (loss) per share attributable to Apollo
$
0.15

 
$
(0.17
)
 
$
(0.78
)
 
$
0.28

Earnings (loss) per share - Diluted:
 
 
 
 
 
 
 
Continuing operations attributable to Apollo
$
0.20

 
$
(0.09
)
 
$
(0.69
)
 
$
0.49

Discontinued operations attributable to Apollo
(0.06
)
 
(0.08
)
 
(0.09
)
 
(0.22
)
Diluted income (loss) per share attributable to Apollo
$
0.14

 
$
(0.17
)
 
$
(0.78
)
 
$
0.27

Basic weighted average shares outstanding
108,939

 
107,950

 
108,660

 
108,092

Diluted weighted average shares outstanding
110,269

 
107,950

 
108,660

 
109,038




Apollo Education Group, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
 
As of August 31,
($ in thousands)
2016
 
2015
ASSETS
Current assets:
 
 
 
Cash and cash equivalents
$
464,024

 
$
503,705

Restricted cash and cash equivalents
142,170

 
198,369

Marketable securities
197,886

 
194,676

Accounts receivable, net
224,990

 
198,459

Prepaid taxes
19,287

 
38,371

Other current assets
40,368

 
48,823

Assets of business held for sale
—

 
40,897

Total current assets
1,088,725

 
1,223,300

Marketable securities
18,758

 
95,815

Property and equipment, net
332,702

 
370,281

Goodwill
272,699

 
247,190

Intangible assets, net
191,146

 
143,244

Deferred taxes
78,366

 
92,105

Other assets
30,510

 
29,129

Total assets
$
2,012,906

 
$
2,201,064

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND SHAREHOLDERS’ EQUITY
Current liabilities:
 
 
 
Short-term borrowings and current portion of long-term debt
$
55,609

 
$
14,080

Accounts payable
59,640

 
64,100

Student deposits
178,160

 
245,470

Current deferred revenue
188,092

 
186,950

Accrued and other current liabilities
233,976

 
280,847

Liabilities of business held for sale
—

 
40,897

Total current liabilities
715,477

 
832,344

Long-term debt
35,186

 
31,566

Deferred taxes
16,323

 
7,729

Other long-term liabilities
169,326

 
172,452

Total liabilities
936,312

 
1,044,091

Commitments and contingencies
 
 
 
Redeemable noncontrolling interests
5,860

 
11,915

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
(3,868,341
)
 
(3,928,419
)
Retained earnings
5,024,528

 
5,153,452

Accumulated other comprehensive loss
(85,957
)
 
(80,579
)
Total Apollo shareholders’ equity
1,070,334

 
1,144,558

Noncontrolling interests
400

 
500

Total equity
1,070,734

 
1,145,058

Total liabilities, redeemable noncontrolling interests and shareholders’ equity
$
2,012,906

 
$
2,201,064






Apollo Education Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 
Year Ended
August 31,
($ in thousands)
2016
 
2015
Operating activities:
 
 
 
Net (loss) income
$
(91,030
)
 
$
24,295

Adjustments to reconcile net (loss) income to net cash provided by operating activities:
 
 
 
Share-based compensation
32,862

 
38,669

Excess tax benefits from share-based compensation
—

 
(236
)
Depreciation and amortization
109,938

 
132,012

Accelerated depreciation included in restructuring
15,792

 
12,818

Impairment charges and losses on asset dispositions
77,578

 
39,776

Non-cash foreign currency (gain) loss, net
(175
)
 
2,389

Provision for uncollectible accounts receivable
55,882

 
59,205

Deferred income taxes
1,095

 
2,752

Changes in assets and liabilities, excluding the impact of acquisitions and disposition:
 
 
 

Restricted cash and cash equivalents
57,481

 
25,150

Accounts receivable
(85,672
)
 
(74,475
)
Prepaid taxes
18,398

 
(4,352
)
Other assets
13,314

 
12,866

Accounts payable
(5,482
)
 
1,994

Student deposits
(65,804
)
 
(32,298
)
Current deferred revenue
(25,681
)
 
6,985

Accrued and other liabilities
(63,412
)
 
(78,968
)
Net cash provided by operating activities
45,084

 
168,582

Investing activities:
 
 
 
Purchases of property and equipment
(73,074
)
 
(97,961
)
Purchases of marketable securities
(250,509
)
 
(232,700
)
Maturities of marketable securities
246,212

 
141,974

Sales of marketable securities
73,102

 
70,719

Acquisitions, net of cash acquired
(97,277
)
 
(31,705
)
Other investing activities
(3,440
)
 
(4,628
)
Net cash used in investing activities
(104,986
)
 
(154,301
)
Financing activities:
 
 
 
Payments on borrowings
(66,224
)
 
(614,735
)
Proceeds from borrowings
86,961

 
5,800

Share repurchases
(4,454
)
 
(44,723
)
Share reissuances
1,174

 
1,538

Purchase of noncontrolling interests
—

 
(51,485
)
Excess tax benefits from share-based compensation
—

 
236

Payment for contingent consideration
—

 
(21,371
)
Net cash provided by (used in) financing activities
17,457

 
(724,740
)
Effect of foreign exchange rates on cash and cash equivalents
2,764

 
(4,429
)
Net decrease in cash and cash equivalents
(39,681
)
 
(714,888
)
Cash and cash equivalents, beginning of year
503,705

 
1,228,813

Cash and cash equivalents and cash of business held for sale, end of year
464,024

 
513,925

Less cash of business held for sale
—

 
(10,220
)
Cash and cash equivalents, end of year
$
464,024

 
$
503,705

Supplemental disclosure of cash flow and non-cash information:
 

 
 

Cash paid for income taxes, net of refunds
$
83

 
$
47,836

Cash paid for interest
6,755

 
6,674

Restricted stock units vested and released
13,885

 
19,570

Credits received for tenant improvements
3,312

 
—






Apollo Education Group, Inc. and Subsidiaries
Segment Data and University of Phoenix Operating Metrics
(Unaudited)
 
Three Months Ended
August 31,
 
Year Ended
August 31,
($ in thousands)
2016
 
2015
 
2016
 
2015
Net revenue:
 
 
 
 
 
 
 
University of Phoenix:
 
 
 
 
 
 
 
Degree seeking gross revenues(1)
$
419,491

 
$
568,515

 
$
1,832,128

 
$
2,393,769

Less: Discounts and other
(51,931
)
 
(74,788
)
 
(240,672
)
 
(294,103
)
Degree seeking net revenues(1)
367,560

 
493,727

 
1,591,456

 
2,099,666

Other revenues
11,800

 
13,271

 
39,956

 
48,646

Total University of Phoenix
379,360

 
506,998

 
1,631,412

 
2,148,312

Apollo Global
99,565

 
85,355

 
433,700

 
391,217

Other
13,554

 
7,938

 
36,738

 
26,748

Net revenue
$
492,479

 
$
600,291

 
$
2,101,850

 
$
2,566,277

Operating income (loss):
 
 
 
 
 
 
 
University of Phoenix
$
47,127

 
$
40,589

 
$
80,226

 
$
257,366

Apollo Global
(8,218
)
 
(22,609
)
 
(37,895
)
 
(49,527
)
Other
(10,436
)
 
(23,015
)
 
(107,924
)
 
(92,895
)
Operating income (loss)
$
28,473

 
$
(5,035
)
 
$
(65,593
)
 
$
114,944

(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 August 31,
 
 
 
Year Ended August 31,
2016
 
2015
 
% Change
 
 
 
2016
 
2015
 
% Change
Degreed Enrollment(1), (2)
142,500

 
190,700

 
(25.3
)%
 
 
Average Degreed Enrollment(2), (4)
165,600

 
214,500

 
(22.8
)%
New Degreed Enrollment(3)
19,400

 
26,500

 
(26.8
)%
 
 
Aggregate New Degreed Enrollment
79,000

 
123,800

 
(36.2
)%
Degree seeking net revenues per degreed enrollment
$
2,579

 
$
2,589

 
 
 
 
 
 
 
 
 
 
(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 during the third and fourth quarters of fiscal year 2016 compared to prior 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 is approximately 2,000 - 3,000 for both the third and fourth quarters of fiscal year 2016.
(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
August 31,
 
Year Ended
August 31,
(In thousands, except per share data)
2016
 
2015
 
2016
 
2015
Net income (loss) attributable to Apollo, as reported
$
15,863

 
$
(18,484
)
 
$
(84,554
)
 
$
29,755

Less: Loss from discontinued operations, net of tax
(6,432
)
 
(8,279
)
 
(9,691
)
 
(23,185
)
Income (loss) from continuing operations attributable to Apollo
22,295

 
(10,205
)
 
(74,863
)
 
52,940

Special items:
 
 
 
 
 
 
 
Restructuring and impairment charges(1)
9,479

 
29,078

 
159,057

 
81,800

Merger, acquisition and other related (credits) costs, net
(3,353
)
 
1,695

 
21,835

 
6,201

Litigation charge
—

 
—

 
—

 
100

Special items before income taxes
6,126

 
30,773

 
180,892

 
88,101

Less: income tax effects of special items
(5,444
)
 
(11,921
)
 
(42,706
)
 
(33,669
)
Open Colleges valuation allowance charge
—

 
10,082

 
—

 
10,082

Tax expense from resolution with tax authority
—

 
—

 
—

 
3,002

Special items, net of income taxes
682

 
28,934

 
138,186

 
67,516

Income from continuing operations attributable to Apollo, excluding special items
$
22,977

 
$
18,729

 
$
63,323

 
$
120,456

Diluted income (loss) per share from continuing operations attributable to Apollo, as reported
$
0.20

 
$
(0.09
)
 
$
(0.69
)
 
$
0.49

Diluted income per share from continuing operations attributable to Apollo, excluding special items
$
0.21

 
$
0.17

 
$
0.58

 
$
1.10

(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
August 31,
 
Year Ended
August 31,
($ in thousands)
2016
 
2015
 
2016
 
2015
Adjusted EBITDA:
 
 
 
 
 
 
 
University of Phoenix
$
69,395

 
$
76,384

 
$
274,740

 
$
392,370

Apollo Global
842

 
(16,055
)
 
3,063

 
(15,284
)
Other
(9,161
)
 
(6,269
)
 
(55,778
)
 
(54,494
)
Adjusted EBITDA
61,076

 
54,060

 
222,025

 
322,592

Less: Special items before income taxes (see above table)
6,126

 
30,773

 
180,892

 
88,101

Less: Depreciation and amortization
27,460

 
29,598

 
109,938

 
125,303

Less: Interest expense, net of interest income
591

 
520

 
2,705

 
3,545

Less: Provision for income taxes
6,033

 
4,366

 
9,829

 
58,163

Plus: Loss from discontinued operations, net of tax
(6,432
)
 
(8,279
)
 
(9,691
)
 
(23,185
)
Net income (loss), as reported
$
14,434

 
$
(19,476
)
 
$
(91,030
)
 
$
24,295





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., an affiliate of Apollo Management VIII, L.P., which is a fund managed by an affiliate of Apollo Global Management, LLC, an entity unrelated to 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 proposed 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.
Investor Relations Contact:
Beth Coronelli, (312) 660-2059
beth.coronelli@apollo.edu
Media Contact:
Media Relations Hotline, (602) 254-0086
media@apollo.edu

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