Nasdaq: APEI First Quarter 2024 Earnings Presentation Forward Looking Statements Statements made in this presentation regarding American Public Education, Inc. or its subsidiary institutions (“APEI” or the “Company”) that are not historical facts are forward-looking statements based on current expectations, assumptions, estimates and projections about APEI and the industry. In some cases, forward- looking statements can be identified by words such as “anticipate,” “believe,” “seek,” “could,” “estimate,” “ex ...

Financial Performance - Consolidated revenue for Q1 2024 increased 3.2% year-over-year to $154.4 million, driven by a 9.0% increase in the APUS Segment and a 25.2% increase in the HCN Segment[2][4] - Adjusted EBITDA for Q1 2024 was $17.1 million, a significant increase of 143% year-over-year from $7.0 million in Q1 2023[2][8] - Net loss available to common stockholders decreased to ($1.0) million, or ($0.06) per diluted common share, compared to a net loss of ($7.2) million, or ($0.38) per diluted common share in the prior year[2][7] - Revenues for Q1 2024 increased to $154,432 thousand, up 3.7% from $149,689 thousand in Q1 2023[23] - Net income for Q1 2024 was $516 thousand, compared to a net loss of $5,740 thousand in Q1 2023[23] - The company expects a net income range for Q2 2024 between $(1,970) thousand and $830 thousand[28] Enrollment and Segment Performance - Total student enrollment at Hondros College of Nursing increased by 22% to 3,300 students, while total student enrollment at Rasmussen University decreased by 5.6% to 13,500 students[10] - APUS Segment revenues rose to $80,656 thousand, a 9.1% increase from $73,978 thousand in the same period last year[24] - The RU Segment reported a revenue decline to $53,135 thousand, down 7.5% from $57,467 thousand in Q1 2023[24] - Income from operations before interest and income taxes for the APUS Segment increased to $23,087 thousand, up 35.2% from $17,074 thousand in Q1 2023[24] - The HCN Segment revenues increased to $16,447 thousand, a 25.5% rise from $13,140 thousand in Q1 2023[24] Cash and Guidance - Total cash, cash equivalents, and restricted cash increased to $153.2 million at March 31, 2024, representing a 6.1% increase from $144.3 million at December 31, 2023[2][9] - The company is increasing its full year 2024 revenue guidance to approximately $620 million to $630 million, reflecting a year-over-year change of 3% to 5%[12][14] - For Q2 2024, APEI expects consolidated revenue to be between $153.0 million and $155.0 million, representing a year-over-year increase of 4% to 5%[12][13] Costs and Expenditures - The company reported a decrease in total costs and expenses by 3.7% to $149.3 million for Q1 2024, primarily due to reductions in advertising and depreciation costs[5][6] - APEI's capital expenditure (CapEx) for the full year 2024 is projected to be between $17 million and $20 million, indicating a significant increase of 22% to 44% year-over-year[12][14] - Preferred stock dividends increased to $1,535 thousand in Q1 2024 from $1,457 thousand in Q1 2023[26] - The company incurred a loss on leases of $2,936 thousand in Q1 2024, with no such loss reported in Q1 2023[26] Management Insights - Management highlighted the positive momentum in financial performance as a result of stabilization efforts at Rasmussen and growth at APUS and Hondros[3]

Financial Performance - Consolidated revenue for Q1 2024 increased to $154.4 million, up 3.2% from $149.7 million in Q1 2023[125] - Net income for Q1 2024 was $0.5 million, a significant improvement of $6.3 million compared to a net loss of $5.7 million in the prior year[125] - Total revenue for Q1 2024 was $154.4 million, an increase from $149.7 million in Q1 2023, representing a growth of 3.7%[157] Segment Performance - APUS net course registrations rose to approximately 99,000, an increase of 2.8% from approximately 96,300 in the prior year[126] - APUS Segment revenue increased to $80.7 million, up 9.0% from $74.0 million in the prior year[126] - RU total enrollment decreased to approximately 13,500, down 5.6% from approximately 14,300 in the prior year[127] - RU Segment revenue decreased to $53.1 million, down 7.5% from $57.5 million in the prior year[127] - HCN total enrollment increased to approximately 3,300, a rise of 20.5% from approximately 2,700 in the prior year[127] - HCN Segment revenue increased to $16.4 million, up 25.2% from $13.1 million in the prior year[127] Operating Margins - Operating margins for APUS improved to 28.6% in Q1 2024 from 23.1% in the prior year[126] - HCN Segment operating margins improved to negative 1.8% from negative 9.9% in the prior year[127] Costs and Expenses - Total costs and expenses decreased to $149.3 million, a reduction of $5.8 million, or 3.7%, compared to $155.1 million in Q1 2023[146] - General and administrative expenses for Q1 2024 were $36.3 million, an increase of $2.8 million, or 8.3%, compared to $33.5 million in Q1 2023[149] - Consolidated bad debt expense for Q1 2024 was $4.2 million, or 2.7% of revenue, compared to $3.9 million, or 2.6% of revenue in the prior year[149] Cash and Leverage - Cash and cash equivalents increased by $8.9 million, or 6.2%, to $153.2 million as of March 31, 2024, primarily due to higher revenue and operating income at APUS[161] - The Total Net Leverage Ratio decreased to 0.33 as of March 31, 2024, from 0.51 as of December 31, 2023, due to improved results and decreased accounts receivable[166] Investment and Financing Activities - Net cash used in investing activities increased to $6.2 million for the three months ended March 31, 2024, compared to $3.2 million for the same period in 2023, primarily due to campus relocations and increased IT capital expenditures[169] - Net cash used in financing activities rose to $5.7 million for the three months ended March 31, 2024, from $2.8 million in 2023, driven by an increase in common stock repurchases, totaling 251,146 shares for $2.8 million compared to 75,000 shares for $0.4 million in 2023[170] IT and Risk Management - The company incurred approximately $1.9 million in information technology transition service costs in Q1 2024 as part of its technology transformation program[167] - The total minimum expenses for outsourced IT services through September 30, 2024, are approximately $4.7 million[171] - The company has no material derivative financial instruments as of March 31, 2024, and maintains cash and cash equivalents in secure accounts, with no significant credit risk exposure[172] - A 10% change in interest rates would not materially impact the fair value of the company's investment portfolio due to its short-term duration and low yield[172] - For every 100 basis points increase in Term SOFR on variable rate indebtedness, the company would incur an additional $1.0 million in interest expense per year[174] - The company has entered into an interest rate cap agreement to hedge $87.5 million of principal under its term loan, providing protection if the one-month Term SOFR rate exceeds 1.78%[174]

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Company to Present May 8 at 1:45 p.m. ET CHARLES TOWN, W.Va., May 2, 2024 /PRNewswire/ -- American Public Education, Inc. (NASDAQ: APEI), a leading education services provider that transforms lives, advances careers, and improves communities through both campus-based and online post-secondary education through its wholly owned subsidiaries, today announced that it will be participating in the upcoming virtual Sidoti Micro Cap Conference on Wednesday, May 8, and Thursday, May 9, 2024. Angela Selden, Presiden ...

U.S. economic growth slowed in the first quarter. The Commerce Department reported that U.S. gross domestic product (GDP) grew a meager 1.6%, a lot lower than the 3.4% recorded in the final quarter of 2023.The report mentioned that consumer spending somewhat moderated from January through March, which slowed down the economy. However, the report also said that consumer spending remains solid, and has been driving the economy.Consumer spending, which accounts for over two-thirds of U.S. economic activity, in ...

Investors interested in stocks from the Schools sector have probably already heard of American Public Education (APEI) and Bright Horizons Family Solutions (BFAM) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank ...

COLUMBUS, Ohio, April 25, 2024 /PRNewswire/ -- Hondros College of Nursing (HCN) will introduce a new Medical Assisting program at its six Ohio campuses in 2024 to meet the growing need for medical assistants in a variety of settings.  According to the U.S. Bureau of Labor Statistics (BLS), employment for medical assistants is projected to grow 14 percent between 2022 and 2032, with 105,000 new positions created overall.1  "Our community partners have made it clear that, aside from nursing, they need medical ...

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In order to increase students’ engagement and classroom interactivity, American Public Education, Inc. (APEI) has been improving the quality of the student mix, releasing new tools for students and engaging in other initiatives to drive student persistence rate.Recently, its American Public University (APU) unit unveiled a new visual identity to become a global digital university. This integrates emerging technologies and enhanced teaching and learning opportunities for faculty and students. APU announced a ...