I was putting away my teaching material for the holidays and ran across a 2005 Annual Report for Apollo Inc. (Owner of UOP). For 2005, it breaks down as: $2,251,472,000 Tuition Revenue $338,400,000 Employee Comp (Non-Faculty) $195,100,000 Faculty Comp $172,500,000 Classroom Lease / Depreciation $140,900,000 Other Instructional Costs $ 88,800,000 Bad Debt / Financial Aid Processing ************ $935,700,000 Instructional Costs $224,000,000 Advertising $206,500,000 Enrollment Advisor Comp (Listed under Advertising) $ 54,300,000 Other Selling and Promotional Expenses ************ $484,800,000 Selling and Promotional $ 98,300,000 General and Administrative Expenses $ 19,824,000 Stock based Comp ************ $1,538,623,000 Total Operating Expenses ************ $ 712,849,000 Income from Operations
So a couple of interesting points. Half a BILLLLLLLION (use Dr. Evil voice from Austin Powers) dollars in Selling and Promotional. $45,500,000 in bad debts? I thought all tuition had to be prepaid.
It does not have to be pre-paid. If you tell them you are using tuition assistance, they bill you after the class is complete so you time to collect the money from your employer.
