APOLLO EDUCATION GROUP INC

CIK:0000929887|SEC Filings

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Nov. 30, 2016	Nov. 30, 2015
Income Statement [Abstract]
Net revenue	$ 484,499	$ 586,021
Costs and expenses:
Instructional and student advisory	248,753	291,327
Marketing	90,967	93,802
Admissions advisory	26,588	34,188
General and administrative	51,325	67,445
Depreciation and amortization	26,854	27,394
Provision for uncollectible accounts receivable	13,930	15,313
Restructuring and impairment charges	15,365	97,823
Merger, acquisition and other related costs, net	2,313	3,978
Total costs and expenses	476,095	631,270
Operating income (loss)	8,404	(45,249)
Interest income	1,087	919
Interest expense	(1,425)	(1,456)
Other loss, net	(644)	(843)
Income (loss) from continuing operations before income taxes	7,422	(46,629)
Provision for income taxes	(4,223)	(12,239)
Income (loss) from continuing operations	3,199	(58,868)
Loss from discontinued operations, net of tax	0	(3,259)
Net income (loss)	3,199	(62,127)
Net loss attributable to noncontrolling interests	871	1,362
Net income (loss) attributable to Apollo	$ 4,070	$ (60,765)
Earnings income (loss) per share, Basic [Abstract]
Continuing operations attributable to Apollo	$ 0.04	$ (0.53)
Discontinued operations attributable to Apollo	0.00	(0.03)
Basic income (loss) per share attributable to Apollo (in dollars per share)	0.04	(0.56)
Earnings income (loss) per share, Diluted [Abstract]
Continuing operations attributable to Apollo	0.04	(0.53)
Discontinued operations attributable to Apollo	0.00	(0.03)
Diluted income (loss) per share attributable to Apollo (in dollars per share)	$ 0.04	$ (0.56)
Basic weighted average shares outstanding (in shares)	109,724	108,446
Diluted weighted average shares outstanding (in shares)	110,186	108,446

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2016	Nov. 30, 2015
Operating activities:
Net income (loss)	$ 3,199	$ (62,127)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Share-based compensation	3,401	9,520
Depreciation and amortization	26,854	27,394
Accelerated depreciation included in restructuring	1,728	2,953
Impairment charges and loss on asset dispositions	(266)	(73,393)
Non-cash foreign currency loss, net	483	352
Provision for uncollectible accounts receivable	13,930	15,313
Deferred income taxes	8,708	3
Changes in assets and liabilities:
Restricted cash and cash equivalents	16,673	(10,973)
Accounts receivable	(39,851)	(32,899)
Prepaid taxes	(3,173)	11,612
Other assets	(10,912)	(9,915)
Accounts payable	4,176	(14,690)
Student deposits	(31,587)	(4,880)
Current deferred revenue	50,878	2,087
Accrued and other liabilities	(28,319)	(26,010)
Net cash provided by (used in) operating activities	16,454	(18,867)
Investing activities:
Purchases of property and equipment	(20,872)	(14,456)
Purchases of marketable securities	(8,993)	(109,715)
Maturities of marketable securities	96,562	57,627
Sales of marketable securities	4,009	5,149
Other investing activities	152	(196)
Net cash provided by (used in) investing activities	70,858	(61,591)
Financing activities:
Payments on borrowings	(32,377)	(3,448)
Proceeds from borrowings	0	926
Share repurchases	(997)	(517)
Net cash used in financing activities	(33,374)	(3,039)
Effect of foreign exchange rates on cash and cash equivalents	(688)	(442)
Net increase (decrease) in cash and cash equivalents	53,250	(83,939)
Cash and cash equivalents, beginning of period	464,024	503,705
Cash and cash equivalents, end of period	517,274	419,766
Supplemental disclosure of cash flow and non-cash information:
Cash paid for income taxes, net of refunds	0	0
Cash paid for interest	1,455	1,392
Restricted stock units vested and released	2,898	1,430
Credits received for tenant improvements	$ 402	$ 0

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Nov. 30, 2016	Aug. 31, 2016
Current assets:
Cash and cash equivalents	$ 517,274	$ 464,024
Restricted cash and cash equivalents	124,871	142,170
Marketable securities	117,392	197,886
Accounts receivable, net	246,306	224,990
Prepaid taxes	25,058	19,287
Other current assets	50,788	40,368
Total current assets	1,081,689	1,088,725
Marketable securities	6,893	18,758
Property and equipment, net	321,345	332,702
Goodwill	265,692	272,699
Intangible assets, net	179,417	191,146
Deferred taxes	68,703	78,366
Other assets	31,504	30,510
Total assets	1,955,243	2,012,906
Current liabilities:
Short-term borrowings and current portion of long-term debt	23,530	55,609
Accounts payable	63,360	59,640
Student deposits	145,018	178,160
Current deferred revenue	234,794	188,092
Accrued and other current liabilities	214,404	233,976
Total current liabilities	681,106	715,477
Long-term debt	33,251	35,186
Deferred taxes	15,479	16,323
Other long-term liabilities	156,488	169,326
Total liabilities	886,324	936,312
Commitments and contingencies
Redeemable noncontrolling interests	5,767	5,860
Shareholders’ equity:
Preferred stock, no par value
Additional paid-in capital	0	0
Apollo Class A treasury stock, at cost	(3,857,845)	(3,868,341)
Retained earnings	5,018,613	5,024,528
Accumulated other comprehensive loss	(97,933)	(85,957)
Total Apollo shareholders’ equity	1,062,939	1,070,334
Noncontrolling interests	213	400
Total equity	1,063,152	1,070,734
Total liabilities, redeemable noncontrolling interests and shareholders’ equity	1,955,243	2,012,906
Common stock [Member] \| Apollo Class A nonvoting common stock [Member]
Shareholders’ equity:
Apollo common stock	103	103
Total equity	103	103
Common stock [Member] \| Apollo Class B voting common stock [Member]
Shareholders’ equity:
Apollo common stock	1	1
Total equity	$ 1	$ 1