September 27, 2021

UoP going Private

uop

University of Phoenix selling College to Appolo Global

Apollo Education Group (APOL) will sell itself to a group of investors, which will take the company private. A former deputy secretary of the Department of Education, Tony Miller, will take the helm at a tough time. Its shares plunged 75% in 2015.

“For too long and too often, the private education industry has been characterized by inadequate student outcomes, overly aggressive marketing practices, and poor compliance. This doesn’t need to be the case,” Miller said in a statement.

http://money.cnn.com/2016/02/08/pf/college/university-of-phoenix-online-sold/index.html?iid=hp-stack-dom

 

New guidance from Dept. of ED on Gainful Employment

gainful emplyment

additional elements of the Gainful Employment Rules (“GE”) have become effective, the Department of Education (“ED”) has provided additional formal and informal guidance regarding its expectations for reporting, certification, and disclosures.

Reporting: new requirements and compliance timeline

On August 10, 2015, notably 10 days after the deadline for reporting the first set of student data for calculation of the GE debt-to-earnings rates passed, ED issued new guidance in an Electronic Announcement (“EA 58”) requiring institutions to disclose additional data on discontinued programs. ED’s original guidance stated that institutions were required to report data from programs that were active as of July 1, 2015. The new guidance now requires reporting for all programs that were discontinued between July 1, 2012 and July 1, 2015 as well.

Link: https://ifap.ed.gov/eannouncements/081015GE58NSLDSRptg4GEPrgmsDiscontinuedPrior2EffectiveDateofRegs.html 

And they call themselves Non Profit…

money

Here are the 10 highest paid college presidents, via The Chronicle:

  1. Shirley Ann Jackson (Rensselaer Polytechnic Institute) — $7,143,312
  2. John L. Lahey (Quinnipiac University) — $3,759,076
  3. Lee C. Bollinger (Columbia University) — $3,389,917
  4. Amy Gutmann (University of Pennsylvania) — $2,473,952
  5. Charles R. Middleton (Roosevelt University) — $1,762,956
  6. Susan Hockfield (Massachusetts Institute of Technology) — $1,679,097
  7. David W. Leebron (Rice University) — $1,522,502
  8. John E. Sexton (New York University) — $1,404,484
  9. Marc Tessier-Lavigne (Rockefeller University) — $1,381,341
  10. Richard C. Levin (Yale University) — $1,369,856

Read more: http://www.businessinsider.com/highest-paid-college-presidents-2014-12#ixzz3c1IhJpsJ

April search volume holding strong

Check out the April search volume: http://www.forprofitedu.com/marketing-firms/search-volume/april-2009-search-volume/

Educational Attainment of the Population 18 Years and Over, by Age, Sex, Race, and Hispanic Origin: 2008

             
Table 1.  Educational Attainment of the Population 18 Years and Over, by Age, Sex, Race, and Hispanic Origin:  2008          
(Numbers in thousands.  Civilian noninstitutionalized population /1.)            
                     
All Races Educational Attainment              
  Total None High school graduate Some college no degree Associate’s , occupational Associate’s, academic Bachelor’s  Master’s  Professional  Doctoral 
Both Sexes                    
.18 years and over 224,703 824 69,480 44,168 9,016 9,573 40,070 14,893 3,009 2,485
..18 to 24 years 28,398 47 8,296 10,356 608 799 2,511 128 17 14
.25 years and over 196,305 776 61,183 33,812 8,408 8,774 37,559 14,765 2,991 2,472
..25 to 29 years 21,057 30 6,017 4,109 834 1,054 5,012 1,227 181 57
..30 to 34 years 19,089 40 5,280 3,287 873 956 4,409 1,565 309 210
..35 to 39 years 20,733 40 5,586 3,623 967 1,072 4,695 1,865 375 268
..40 to 44 years 21,399 68 6,454 3,576 1,054 1,065 4,509 1,641 318 270
..45 to 49 years 22,701 84 7,297 4,021 1,138 1,140 4,380 1,592 349 282
..50 to 54 years 21,234 106 6,772 3,661 1,078 1,107 4,051 1,689 395 245
..55 to 59 years 18,371 74 5,589 3,302 844 900 3,462 1,679 344 316
..60 to 64 years 14,931 69 4,632 2,710 603 619 2,634 1,377 268 289
..65 to 69 years 11,165 61 3,904 1,844 379 335 1,568 842 155 231
..70 to 74 years 8,423 79 3,095 1,262 231 221 1,063 514 92 133
..75 years and over 17,202 126 6,560 2,417 406 305 1,776 773 206 172
Male
.18 years and over 108,862 396 34,048 20,735 4,111 3,980 19,102 6,920 1,888 1,631
..18 to 24 years 14,392 29 4,557 4,925 268 387 1,060 34 11 3
.25 years and over 94,470 367 29,491 15,810 3,843 3,593 18,042 6,886 1,877 1,628
..25 to 29 years 10,721 16 3,423 2,058 417 432 2,305 475 69 24
..30 to 34 years 9,489 17 2,933 1,539 407 423 2,060 623 150 110
..35 to 39 years 10,291 20 3,004 1,844 433 454 2,170 819 213 152
..40 to 44 years 10,589 43 3,387 1,620 503 404 2,082 790 186 172
..45 to 49 years 11,165 49 3,796 1,803 514 428 2,034 789 214 196
..50 to 54 years 10,374 65 3,438 1,751 509 448 1,931 691 266 155
..55 to 59 years 8,929 39 2,462 1,609 390 401 1,784 830 244 206
..60 to 64 years 7,150 22 2,002 1,261 289 287 1,398 703 186 199
..65 to 69 years 5,238 23 1,606 824 171 155 841 452 122 180
..70 to 74 years 3,740 31 1,156 537 98 92 570 291 74 100
..75 years and over 6,785 40 2,283 965 112 68 868 422 155 134
Female
.18 years and over 115,841 427 35,432 23,433 4,905 5,593 20,968 7,973 1,121 855
..18 to 24 years 14,006 18 3,740 5,431 340 412 1,451 94 7 11
.25 years and over 101,835 409 31,692 18,002 4,565 5,181 19,517 7,879 1,114 844
..25 to 29 years 10,337 14 2,594 2,051 417 622 2,708 752 112 33
..30 to 34 years 9,600 23 2,347 1,747 466 533 2,349 942 158 100
..35 to 39 years 10,442 20 2,582 1,779 534 619 2,526 1,046 163 116
..40 to 44 years 10,810 24 3,067 1,957 551 661 2,427 852 133 99
..45 to 49 years 11,536 35 3,501 2,219 625 712 2,346 803 136 86
..50 to 54 years 10,860 41 3,333 1,909 569 659 2,120 998 129 90
..55 to 59 years 9,442 34 3,126 1,693 454 499 1,678 849 100 110
..60 to 64 years 7,781 47 2,630 1,449 314 332 1,236 674 82 90
..65 to 69 years 5,928 37 2,297 1,020 208 180 727 390 33 51
..70 to 74 years 4,683 48 1,939 725 133 129 493 222 18 33
..75 years and over 10,417 86 4,277 1,452 295 236 908 351 51 38
Footnotes:                    
A dash (-) represents zero or rounds to zero.              
/1 Plus armed forces living off post or with their families on post.              
/2 12th grade no diploma are included in this category.              
                     
Source:  U.S. Census Bureau, Current Population Survey, 2008 Annual Social and Economic Supplement          
Internet Release date:  April 2009                
                     

Link to data: http://www.census.gov/population/www/socdemo/education/cps2008.html

Low cost/tuition online schools…they have been growing, what are your thoughts of long term prospects?

There have been a number of entrants into the online degree space whose tuition are at significantly lower price points than the majors.  Some of these have seen tremendous enrollment growth over the last year to two. In addition, they have remained (in many cases) extremely profitable.  What are your thoughts on these low price providers?  How do you think they will fare long term?  Will they be able to continue to grow with the high marketing/lead costs? 

EDU stocks trading at low prices & multiples

Take a look at the EDU stocks, now looks to be a good time to buy in at good prices and at multiples as low as they have been in a while.  With all the bullish discussion of late the EDU sector has taken a hit.  With people/investors being short sighted and thinking, hey if this is the beginning of a recover, we need to get out of those counter cyclical edu stocks now as they will surely go down…  Our thoughts are with what Samuel Clemens once wrote: Let us be thankful for the fools, but for them the rest of us would not succeed!  Sure the sheer volume of the selling and shorting may bring these stocks a little lower, but watch them continue to grow, continue to be profitable, and continue to be strong companies…. and ultimately their stock prices will continue to go higher.

What ever happened to Apollo’s Billion Dollar International Investment Fund?

Remember the press release from 2007 about Apollo’s billion dollar invetment with Carlyle?  What ever happened with that?Apollo Group and the Carlyle Group Form $1 Billion Joint Venture to Make Investments in the International Education Services Sector
PHOENIX & WASHINGTON–(BUSINESS WIRE)–Oct. 22, 2007–Apollo Group, Inc. (Nasdaq:APOL) (“Apollo Group” or the “Company”), and private equity firm The Carlyle Group (“Carlyle”), today announced that they have formed a $1 billion joint venture, Apollo Global, Inc. (“Apollo Global”). Apollo Global intends to make a range of investments in the international education services sector. Apollo Global will target investments and partnerships primarily in countries outside the U.S. with attractive demographic and economic growth characteristics. Apollo Group has committed up to $801 million and will own 80.1% of the joint venture. Carlyle has committed up to $199 million and will own 19.9% of Apollo Global. Investments and funding will be subject to approval by the respective investment committees of both Apollo Group and Carlyle. Apollo Global will be a consolidated subsidiary of Apollo Group and Greg Cappelli, Apollo Group’s Executive Vice President and Director will be Chairman of the subsidiary.Commenting on the new venture, Greg Cappelli said, “We are very excited about this new joint venture and our partner, The Carlyle Group. Our core competencies in the education space, combined with Carlyle’s industry relationships and strategic assets across the global education sector, will allow us to successfully capitalize on the tremendous global opportunity that exists in the marketplace.”

Brian Mueller added, “We will continue to invest capital in our high return core domestic business, and through Apollo Global, we will also explore strategic and value creating global acquisition opportunities. Importantly, we reiterate that any investment must meet our disciplined investment criteria as we remain committed to creating long-term value for our shareholders.”

Brooke B. Coburn, Managing Director and Co-head of Carlyle Venture Partners III, L.P., said, “Global demand for higher education is strong. Apollo Group’s operational expertise coupled with Carlyle’s global network make this a powerful partnership.”

The remaining six directors who comprise Apollo Global’s board include Brian Mueller, President and Director of Apollo Group, Peter V. Sperling, Senior Vice President, Secretary and Director of Apollo Group, Roy A. Herberger, Jr., an Apollo Group Director, Jeff Langenbach, Vice President Corporate Development of Apollo Group and Apollo Global’s interim President, Brooke B. Coburn, Managing Director and Co-head of Carlyle Venture Partners III, L.P. and Charles C. Moore, Managing Director on Carlyle’s U.S. Venture and Growth team.

About Apollo Group, Inc.

Apollo Group, Inc. has been an education provider for more than 30 years, operating the University of Phoenix, the Institute for Professional Development, the College for Financial Planning, Western International University and Insight Schools. The Company offers innovative and distinctive educational programs and services at high school, college and graduate levels at 259 locations in 40 states and the District of Columbia; Puerto Rico; Alberta and British Columbia, Canada; Mexico and the Netherlands, as well as online, throughout the world.

For more information about Apollo Group, Inc. and its subsidiaries, call (800) 990-APOL or visit Apollo on the company website at: www.apollogrp.edu.

About The Carlyle Group

The Carlyle Group is a global private equity firm with $75.6 billion under management committed to 55 funds. Carlyle invests in buyouts, venture & growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. Since 1987, the firm has invested $32.3 billion of equity in 686 transactions for a total purchase price of $157.7 billion. The Carlyle Group employs more than 900 people in 21 countries. In the aggregate, Carlyle portfolio companies have more than $87 billion in revenue and employ more than 286,000 people around the world. www.carlyle.com.

 

Whens the next wave of acquisitions comming?

I have heard a few rumors but wanted to see what you think. 2002-2003 was suck a massive year for acquisitions but we haven’t seen a boom year (regarding acquisitions) since. Whose ripe for the picking?  Whens the next roll-up coming out?  There are so many nice mid-sized private for-profit schools out there just lining up for the picking…

Bridgepoint Education Inc goes public below asking

Priced at $10.50 with a target $11-$14

 

Bridgepoint Education, which has two small traditional college campuses and 98% of its students attending exclusively online, generated more than twice the revenue and eight times the earnings in 2008 versus 2007, ending the year with $26.4 million in profits. It has more students, faster enrollment growth and a higher operating profit margin, at 15%, than the last online college that went public, Grand Canyon Education Inc.

Stock is up to $11.33 was as high as $11.68