Following is the transcript of the Apollo Education Group, Inc. (NASDAQ:APOL) first quarter 2015 earnings call made on Thursday, January 08, 2015, 8:30 AM ET. The company reported financial results for the three months ending November 30, 2014.
Apollo Education Group, Inc. (NASDAQ:APOL) was founded in 1973 and is now one of the largest private education providers globally. The company, through its various subsidiaries, owns several educational institutions which offers higher education programs throughout the United States, Europe, Australia, Latin America, Africa, and Asia. It is a pioneer in offering higher education programs and services focused on the more diverse population of working learners.
Beth Coronelli – Vice President of Investor Relations, Apollo Education Group, Inc.
Greg Cappelli – Chief Executive Officer, Apollo Education Group, Inc.
Brian Swartz – Senior Vice President (SVP) and Chief Financial Officer, Apollo Education Group, Inc.
Peter Appert – Piper Jaffray
Paul Ginocchio – Deutsche Bank
Sara Gubins – Bank of America Merrill Lynch
Jerry Herman –Stifel, Nicolaus & Company, Inc.
Henry Chien – BMO Capital Markets
Tom Bakas –First Analysis
Trace Urdan – Wells FargoSecurities, LLC
Nick Nikitas – Robert W. Baird& Co.
Phil Stiller –Citi
Good morning and welcome to the Apollo First Quarter 2015 Earnings Conference Call. At this time, all participants are in a listen-only mode. This conference call is being recorded today, January 08, 2015, and may not be reproduced, in whole or in part, without permission from the company. There will be a replay of this call available through January 16th at www.apollo.edu.
I will now like to turn the call over to Beth Coronelli,VP of Investor Relations. Ms. Coronelli, please go ahead.
Beth Coronelli, Vice President of Investor Relations, Apollo Education Group, Inc.
Thank you for joining us. Participating on the call are Greg Cappelli, Chief Executive Officer of Apollo Education Group; and Brian Swartz, Senior Vice President and Chief Financial Officer. As we discuss the results today, unless noted otherwise, we will be comparing the first quarter of fiscal 2015 to the first quarter of fiscal 2014.
I’d also like to remind you that this conference call contains forward-looking statements with respect to the future performance and financial condition of Apollo Education Group that involves risks and uncertainties. Various factors could cause actual results to be materially different from any future results expressed or implied by such forward-looking statements. These factors are discussed in our quarterly reports and Form 10-K filed with the SEC, which is available on our website. The company disclaims any obligation to update any forward-looking statements made during the call.
Additionally, we may refer to non-GAAP measures which are intended to supplement, but not substitute, for the most directly comparable GAAP measures. Our press release, available on our website, contains the financial and other quantitative information to be discussed today as well as a reconciliation of the GAAP to non-GAAP measures.
And with that, I will turn the call over to Greg.
Greg Cappelli, Chief Executive Officer, Apollo Education Group, Inc.
Okay. Thank you, Beth, and good morning everyone. As we talk about our first quarter results, I will share an update on the progress we are making on our strategy. I will also provide clarity on the disruption related to the implementation of our new classroom, which has infact enrollment and obviously our business outlook for 2015. I will then provide a bit more color on the substantial progress we have made fixing the issues and turn the call over to Brian.
As you know, our long-term strategic plan is based around these four objectives. Student success and career outcomes and player solutions, diversification for Apollo Global and targeted growth initiatives, and operational excellence.
First, student success and career outcomes. Our long-term success is dependent on improving student retention, graduation, and relentless refocusing on career outcomes at our schools worldwide. As part of this effort, University of Phoenix is making meaningful progress on implementing the college operating model. We’re modernizing our curriculum and expanding our offerings. This includes modifying the sequence and structure of our entry level courses which now include gaming within these courses.
We are enhancing student support systems, increasing our full time faculty where appropriate, and