Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors typically avoid timing the market and instead capitalize on fast-moving stocks [1] - Identifying the right entry point for momentum stocks can be challenging, as they may lose momentum if their valuations exceed future growth potential [1] Group 2: American Public Education Inc. (APEI) Analysis - APEI has shown a significant price increase of 40.6% over the past four weeks, indicating growing investor interest [2] - Over the past 12 weeks, APEI's stock has gained 57.3%, demonstrating its ability to deliver positive returns over a longer timeframe [3] - APEI has a beta of 1.27, suggesting it moves 27% higher than the market in either direction, indicating fast-paced momentum [3] - The stock has a Momentum Score of A, suggesting it is an opportune time to invest [3] Group 3: Earnings Estimates and Valuation - APEI has received upward revisions in earnings estimates, earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [4] - The stock is currently trading at a Price-to-Sales ratio of 0.52, indicating it is attractively priced at 52 cents for each dollar of sales [4] - APEI appears to have significant potential for further price appreciation while maintaining a reasonable valuation [5]

Core Insights - American Public Education, Inc. (APEI) reported strong first-quarter 2024 results, with significant improvements in both bottom line and revenues compared to the previous year [1][2] - The company raised its 2024 guidance for revenues and adjusted EBITDA despite a 3.8% decline in shares during after-hours trading [1][7] Financial Performance - APEI reported an adjusted loss of 6 cents per share, surpassing the consensus estimate of a loss of 19 cents by 68.4%, and improved from a loss of 38 cents per share in the prior year [2] - Total revenues reached $154.4 million, exceeding the consensus estimate of $152 million by 1.4% and increasing 3.2% year over year [2] - Total costs and expenses decreased by 3.7% year over year to $149.3 million, aided by reductions in advertising and depreciation costs [2] - Adjusted EBITDA surged 143% year over year to $17.1 million, exceeding the high-end guidance of $10 million, with an adjusted EBITDA margin of 11%, up from 5% [2] Segment Performance - APUS generated revenues of $80.7 million, a 9% increase year over year, driven by growth in registrations and tuition increases [3] - RU reported revenues of $53.1 million, down 8% from $57.5 million a year ago, attributed to lower ADN nursing enrollment, with total student enrollment falling 5.6% [3] - HCN's revenues rose 25% year over year to $16.4 million, supported by a 22% increase in total student enrollment [4] - GSUSA experienced an 18% decline in revenues to $4.2 million, impacted by government spending uncertainty [4] Financial Position - As of the end of the first quarter, APEI had total cash, cash equivalents, and restricted cash of $153.2 million, up from $144.3 million at the end of 2023 [5] Future Guidance - For Q2, APEI expects total revenues to increase by 4%-5% year over year to $153-$155 million, with anticipated profits ranging from a loss of 11 cents to earnings of 5 cents per share [6] - The company raised its 2024 revenue guidance to a growth of 3-5% year over year, now expecting total revenues of $620-$630 million [7]

Financial Data and Key Metrics Changes - APEI's Q1 2024 revenue was $154 million, a 3% increase compared to Q1 2023, exceeding guidance [11][19] - Adjusted EBITDA for Q1 2024 was $17.1 million, representing a 143% increase year-over-year, and was 71% above the top end of guidance [11][20] - Adjusted EBITDA margin expanded by 600 basis points to 11% in Q1 2024, compared to 5% in Q1 2023 [12][20] Business Line Data and Key Metrics Changes - APUS saw a 9% revenue increase to $80.7 million in Q1 2024, driven by a 3% increase in net course registrations and tuition increases [21] - Rasmussen's revenue decreased by 7.5% to $53.1 million due to lower average enrollment, although the EBITDA loss improved by approximately 40% year-over-year [22] - Hondros reported a 25% revenue increase to $16.4 million, with total enrollment growing by 22% to approximately 3,300 students [23] Market Data and Key Metrics Changes - APUS net course registrations increased by 3% year-over-year to 99,000, the highest in eight years [12] - Rasmussen's enrollments showed a slight decrease of 2% in Q2 2024 compared to the previous year, with online enrollments increasing by 4% [25] - Hondros experienced a 10% increase in total student enrollment in Q2 2024, reaching approximately 3,300 students [26] Company Strategy and Development Direction - The company is focused on improving student retention and diversifying its nursing program offerings to achieve a balanced portfolio [10][14] - APEI is increasing its full-year 2024 guidance for revenue and adjusted EBITDA due to strong Q1 performance [12][26] - Investments are planned for modernizing curriculum at APUS and relocating campuses at Hondros to more favorable locations [38][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive enrollment growth at Rasmussen in the second half of 2024 and a return to positive EBITDA [15][55] - The company is optimistic about long-term success, driven by strong education units and a solid financial position [17] - Management highlighted the importance of improving NCLEX pass rates and student retention as key factors for future growth [35][53] Other Important Information - Total cash and cash equivalents increased to $153.2 million, with cash flow from operations rising by 63% year-over-year [24] - The company repurchased 251,000 shares of common stock for an aggregate purchase price of $2.8 million [24] Q&A Session Summary Question: What does getting Rasmussen back to total enrollment growth mean for segment EBITDA margins? - Management indicated that increasing enrollments would lead to breakeven or positive EBITDA due to the fixed cost nature of the campus-based business [30] Question: What were the drivers of the revenue per student increase at APUS? - The increase was attributed to a combination of mix, modest tuition increases, and the timing of course starts [32] Question: Are there any restrictions on enrolling new students at campuses on probation? - There are no restrictions on enrolling new students, and management is optimistic about improving NCLEX pass rates [34] Question: What are the critical investments planned for 2024? - Investments include campus relocations at Hondros and curriculum modernization at APUS, with a focus on technology infrastructure [38][40] Question: Is Rasmussen under control in terms of enrollment? - Management confirmed that enrollment trends are improving, and they expect positive growth in the second half of 2024 [48][55] Question: What is the status of accounts receivable collections with the Army? - There are some older amounts being cleaned up, but current billing and collections are functioning as designed [57][58] Question: Why were margins at the graduate school slightly worse year-on-year? - The decline was due to government budget delays affecting training dollars, but efforts are underway to close the revenue gap [61][62]

American Public Education (APEI) reported $154.43 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 3.2%. EPS of -$0.06 for the same period compares to -$0.38 a year ago.The reported revenue represents a surprise of +1.38% over the Zacks Consensus Estimate of $152.34 million. With the consensus EPS estimate being -$0.19, the EPS surprise was +68.42%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they co ...

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 ...