Core Points - American Public University System (APUS) has achieved initial accreditation for its Master of Science in Healthcare Administration (MSHA) program from the Commission on Accreditation of Healthcare Management Education (CAHME), highlighting its commitment to excellence in healthcare management education [1][2] - The MSHA program is designed to provide students with a comprehensive understanding of legal and ethical healthcare administration, organizational behavior, technology applications in health information management, and financial management [2][3] - CAHME's accreditation process ensures that programs meet rigorous standards set by leading academics and practitioners, thereby enhancing the quality of healthcare management education globally [3][5] Company Overview - APUS has a 33-year history and serves over 153,000 alumni from more than 80 countries, recognized for its innovative approach to online learning [8] - The institution is in the top 11% for students' return on educational investment compared to 4,500 colleges and universities nationwide, according to the Georgetown University Center on Education and the Workforce [8][10] - APUS is accredited by the Higher Learning Commission (HLC) and is a wholly owned subsidiary of American Public Education, Inc. (Nasdaq: APEI) [9]

The University's Esports Program is the First of its Kind in the United States to Receive this Specialized Accreditation CHARLES TOWN, W.Va., March 17, 2025 /PRNewswire/ -- The Commission on Sport Management Accreditation (COSMA) has awarded specialized accreditation to American Public University System's Bachelor of Science in Esports Program. With this latest designation, APUS now has three sport management degree programs that have earned specialty accreditation from COSMA. The accreditation status is va ...

Core Viewpoint - American Public Education, Inc. (APEI) reported better-than-expected fourth-quarter 2024 results, with adjusted earnings and revenues exceeding the Zacks Consensus Estimate, although the bottom line declined year-over-year [1][4]. Financial Performance - Adjusted earnings per share (EPS) for Q4 2024 were 63 cents, surpassing the Zacks Consensus Estimate of 54 cents by 16.7%, but down from 64 cents in the same quarter last year [4]. - Total revenues reached $164.1 million, exceeding the consensus mark of $162 million by 1.6% and growing 7.4% year-over-year [4]. - Total costs and expenses increased by 4.2% year-over-year to $142.6 million, impacting the bottom line [5]. Segment Performance - APUS segment revenues rose to $82.4 million from $79.4 million, driven by registration growth and tuition increases, with total net course registrations increasing by 7.1% to 97,100 [6]. - RU segment reported revenues of $57.5 million, up from $52.6 million, with total student enrollment increasing by 3.5% to 14,600 [7]. - HCN segment revenues grew by 20% year-over-year to $18.9 million, supported by a 19.3% increase in total student enrollment to 3,700 [8]. Yearly Overview - For the full year 2024, APEI reported revenues of $624.6 million, up from $600.5 million in 2023, and adjusted EBITDA increased to $72.3 million from $59.6 million [9]. - The adjusted EPS for the year was 55 cents, a significant improvement from a loss per share of $2.93 in the previous year [9]. Guidance - APEI expects total revenues for Q1 2025 to increase by 4-6% year-over-year to between $161 million and $163 million, with EPS anticipated to be between 9 cents and 17 cents [11]. - For 2025, total revenues are projected to grow by 4-6% year-over-year to $650-$660 million, with adjusted EBITDA expected to be between $75 million and $85 million [13].

A Former Health System CEO, Mr. Statuto Has Over 30 Years of Leadership ExperienceCHARLES TOWN, W.V., March 7, 2025 /PRNewswire/ -- American Public Education, Inc. (Nasdaq: APEI) today announced it has appointed Richard J. Statuto, an accomplished health system CEO, to its Board of Directors, effective March 6, 2025. The appointment brings the total number of APEI board members to nine.Mr. Statuto, currently Chairman of the Board of Directors at Charlotte, N.C.-based Premier, Inc., also previously served as ...

Financial Data and Key Metrics Changes - In Q4 2024, total revenue was $164.1 million, an increase of $11.3 million or 7.4% from the prior year [29] - Full year 2024 revenue reached $624 million, exceeding the top end of the original guidance [11] - Adjusted EBITDA for Q4 2024 was $31.4 million, representing a 22.2% increase compared to the prior year [31] - Diluted net income per common share for Q4 2024 was $0.63, slightly down from $0.64 in the prior year [31] - Cash flow from operations for the year was $48.9 million, compared to $45.5 million in the prior year [35] Business Line Data and Key Metrics Changes - At APUS, Q4 2024 revenue increased to $82.4 million, a 3.8% increase year-over-year, with net course registrations up 7% [32] - Rasmussen's Q4 2024 revenue was $57.5 million, a 9.3% increase, with total enrollment increasing 4% to approximately 14,600 students [32] - Hondros College of Nursing saw a 20% increase in revenue in Q4 2024, with total enrollment up 19.3% to approximately 3,700 students [34] Market Data and Key Metrics Changes - Overall net course registrations at APUS increased by 7% year-over-year in Q4 2024, driven by military and military-affiliated registrations [22] - The nursing schools continue to be a significant driver of growth, with an annual shortage of approximately 200,000 nurses in the market [21] Company Strategy and Development Direction - APEI plans to consolidate its three degree-granting institutions into a single entity, American Public University System, targeting completion by Q4 2025 [24] - The company aims to simplify operations and find revenue and cost synergies through this consolidation [12] - APEI is focusing on optimizing marketing spend and enhancing student support to drive enrollment growth [62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory, highlighting positive enrollment trends and the achievement of positive EBITDA at Rasmussen [10][17] - The company anticipates 2025 revenue guidance of $650 million to $660 million and adjusted EBITDA of $75 million to $85 million [14][40] - Management acknowledged challenges in the first quarter due to portal maintenance affecting enrollment but expects recovery as the portal is now operational [46] Other Important Information - APEI plans to redeem preferred shares by the end of Q2 2025, which is expected to be accretive to net income and earnings per share [13][41] - The company remains net cash positive with total cash and equivalents of $158.9 million as of December 31, 2024 [36] Q&A Session Summary Question: Impact of portal timing on enrollments in Q1 - Management indicated that the portal outage impacted first quarter guidance, with an expected mid-single digits percentage effect [46] Question: Timeline for Rasmussen to achieve double-digit adjusted EBITDA margins - Management did not provide specific multi-year guidance but expressed confidence in significant revenue flow-through to the bottom line [50] Question: Drivers of EBITDA contraction in Q1 - Increased advertising and higher labor costs were cited as primary drivers for the expected year-over-year EBITDA contraction [52][53] Question: G&A savings from portfolio consolidation - Management anticipates both revenue and cost synergies from the consolidation, with a focus on long-term growth rather than immediate cost reductions [59] Question: Drivers of online growth for Rasmussen - The optimization of marketing spend and a shift towards organic lead generation were highlighted as key factors driving enrollment growth [62]

American Public Education, Inc. (NASDAQ:APEI) Q4 2024 Earnings Conference Call March 6, 2025 5:00 PM ET Company Participants Brian Prenoveau - IR Angela Selden - President and CEO Rick Sunderland - EVP and CFO Conference Call Participants Stephen Sheldon - William Blair Jasper Bibb - Truist Securities Operator Good afternoon, and thank you for standing by. My name is Kelvin, and I will be your conference operator today. At this time, I would like to welcome everyone to the American Public Education, Inc. re ...

2 4Q and Full Year 2024 Earnings Presentation March 2025 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," ...

Core Insights - American Public Education (APEI) reported revenue of $164.11 million for the quarter ended December 2024, reflecting a year-over-year increase of 7.4% and a surprise of +1.57% over the Zacks Consensus Estimate of $161.57 million [1] - The earnings per share (EPS) for the quarter was $0.63, slightly down from $0.64 in the same quarter last year, but exceeded the consensus EPS estimate of $0.54 by +16.67% [1] Revenue Performance by Segment - Hondros College, Nursing Programs (HCN) generated revenues of $18.94 million, which is a year-over-year increase of +20%, but fell short of the two-analyst average estimate of $19.16 million [4] - American Military & Public University (APUS) reported revenues of $82.36 million, surpassing the average estimate of $82.14 million, with a year-over-year change of +3.8% [4] - Rasmussen University (RU) achieved revenues of $57.49 million, exceeding the two-analyst average estimate of $55.05 million, representing a year-over-year increase of +9.4% [4] Stock Performance - Over the past month, shares of American Public Education have returned -9.4%, compared to a -3.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it may perform in line with the broader market in the near term [3]

Core Viewpoint - American Public Education (APEI) reported quarterly earnings of $0.63 per share, exceeding the Zacks Consensus Estimate of $0.54 per share, but slightly down from $0.64 per share a year ago, indicating a 16.67% earnings surprise [1][2] Financial Performance - The company achieved revenues of $164.11 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.57% and showing an increase from $152.8 million year-over-year [2] - Over the last four quarters, APEI has exceeded consensus EPS estimates three times and topped revenue estimates twice [2] Stock Performance and Outlook - APEI shares have declined approximately 6% since the beginning of the year, contrasting with the S&P 500's decline of 0.7% [3] - The future performance of APEI's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][5] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.31 on revenues of $161 million, and for the current fiscal year, it is $1.35 on revenues of $649.04 million [7] - The estimate revisions trend for APEI is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Schools industry, to which APEI belongs, is currently ranked in the top 15% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Afya (AFYA), is expected to report quarterly earnings of $0.36 per share, with revenues projected to be $140.53 million, down 4.6% from the previous year [9]

Enrollment and Student Retention - The company reported a significant increase in student enrollment, with a growth rate of 15% year-over-year, reaching a total of 50,000 enrolled students[7]. - The company anticipates challenges in attracting and retaining students, particularly among active-duty service members, which may adversely affect enrollments and revenue[22]. - The company is focusing on improving the learning experience and student outcomes to attract students likely to persist in their programs[14]. Financial Performance and Projections - Revenue for the fiscal year was $200 million, representing a 10% increase compared to the previous year[8]. - The company anticipates a 5% increase in revenue for the next fiscal year, driven by new program offerings and market expansion efforts[7]. - The debt service obligations are projected to be $15 million annually, which may impact cash flow management[8]. - The company has incurred substantial indebtedness, and the cost of servicing this debt may adversely affect financial results and operational flexibility[25]. Strategic Initiatives and Partnerships - The company plans to launch three new educational programs in the next quarter, aimed at meeting emerging market demands[7]. - A strategic partnership with a leading technology firm was established to enhance the company's online learning platform, expected to improve user engagement by 20%[8]. - The company is investing $10 million in technology infrastructure to support the integration of artificial intelligence in its educational services[8]. - The company is exploring new partnerships and relationships to support its initiatives and expand its market presence[14]. Operational Changes and Cost Management - A consolidation of campuses is planned, which is expected to reduce operational costs by 12%[7]. - The anticipated completion of the merger with Rasmussen University and Hondros College of Nursing is expected to create a consolidated institution with a broader program offering[7]. - The planned combination of American Public University System, Rasmussen University, and Hondros College of Nursing aims to consolidate operations and enhance program offerings[14]. Regulatory and Compliance Challenges - The company has faced regulatory challenges, particularly related to the "90/10 Rule," which could affect eligibility for federal student financial aid programs[8]. - Compliance with the "90/10 Rule" is critical; failure to meet this requirement for two consecutive years could result in loss of eligibility for federal student financial aid programs[25]. - Legislative and regulatory changes, including actions by the U.S. Department of Education, could significantly impact the company's operations and financial condition[14]. Technology and Cybersecurity - The integration of technology infrastructure, including the use of artificial intelligence, is essential for maintaining competitiveness and enhancing student support[14]. - The company faces risks related to cybersecurity incidents that could compromise sensitive information and damage its reputation[26]. Competitive Environment - The competitive environment in the education market may decrease market share and increase costs associated with student acquisition[22].