University of Phoenix parent Apollo Education Group reports more losses

• The corporate parent to the University of Phoenix reported another weak quarter to investors.
• The poor numbers are likely the last ones investors will weigh before voting on a proposed buyout.
• The company sees more declines ahead and is warning of a lack of options if the deal fails.

The parent company to the University of Phoenix reported another money-losing quarter to investors Wednesday, noting enrollment fell 24 percent over the past year and net revenues slipped 19 percent.

New enrollment skidded 39 percent over the same period a year ago, contributing to an $80 million operating loss for the quarter for the Apollo Education Group.

Apollo's earnings report is likely the last one shareholders will get before they can vote on whether to accept a buyout offer that would take the Phoenix-based company private.

The latest numbers, along with Arizona-heavy layoffs at the university outlined Tuesday and additional filings by Apollo, underscore why the company is urging investors to approve the proposed $1.1 billion sale.

“While we are facing significant industry and regulatory headwinds that have resulted in declining enrollment at University of Phoenix, we remain focused and committed to a transformational plan that will help the university improve student outcomes and compete more effectively over a long-term period,” said Greg Cappelli, Apollo's CEO, in a statement.

Apollo officials dispensed with the usual conference call with analysts who track the company, noting the approaching April 28 shareholder voting deadline. Two of Apollo’s largest shareholders have indicated their opposition to the sale for $9.50 per share that was announced Feb. 8.

Even as investors absorbed another disappointing quarter, the company said Wednesday it was reminding them in an email of the hazards of rejecting the buyout offer.

“The consequences of a no-vote should be fully understood. Your decision should not be based solely on the adequacy of what you, as shareholders, are receiving, but also the potential risks you are avoiding by accepting this offer,” Apollo wrote in a filing with the Securities and Exchange Commission.

The buyers include the New York-based Apollo Global Management, which is otherwise unaffiliated with Apollo Education, the Vistria Group of Chicago and Najafi Companies of Phoenix.

In a lengthy report filed last month, Apollo Education detailed its crumbling fortunes, urgent efforts at finding a buyer and the "golden parachutes" awaiting the company's top executives if the sale is approved.

Apollo Education has outlined the financial squeeze it operates under due to the looming expiration of its credit line, a recent $70 million loss in business value and a worsening score the U.S. Department of Education uses to permit access to taxpayer-backed student loans. The company gets most of its revenue from the loans.

Records show that while Apollo Education has cash stockpiles, much of it could be obligated to manage its operations in the future.

Last week, the company told investors it now expects enrollment to dip to 133,000 by 2019. In 2010, the school had more than 470,000 students.

Apollo Education's stock has plummeted along with its enrollment. In 2009, the stock traded for $89 a share. It fell to $6.31 earlier this year before stabilizing around $8 per share since announcing the looming sale. On Wednesday, the stock finished regular trading at $8.07, up 1 cent.

Apollo Education is only the biggest to fall in an industry that has lost more than $25 billion in shareholder value in recent years. For-profit education has come under government scrutiny for pricey programs that too-often failed to yield meaningful employment and more competition for online coursework from traditional universities.