Core Perspective - Rasmussen University is celebrating its 125th anniversary in 2025, highlighting its legacy of transforming lives and strengthening communities through career-focused education [1][4][10] Company Overview - Founded in 1900 by Walter Rasmussen, the institution began as the Rasmussen Practical School of Business in St. Paul, Minnesota, addressing the need for skilled professionals [5] - Over the years, Rasmussen University has expanded its offerings to include more than 60 undergraduate and graduate programs across eight areas of study, with a strong emphasis on nursing education [7][11] Legacy and Impact - The university has a long-standing commitment to expanding access to education, particularly for underrepresented and underserved populations, and has pioneered online learning to meet workforce needs [6][10] - Rasmussen University emphasizes the belief that education creates opportunities, empowering generations of learners to make a lasting impact on their communities [5][6] Anniversary Activities - Throughout 2025, Rasmussen will host various activities and initiatives to celebrate its legacy, including campus celebrations, a traveling Green Couch series for engaging conversations, and research studies focused on legacy and future skills [9][12] - The university will also launch targeted campaigns in key communities to raise awareness of its anniversary and legacy through multi-platform messaging and social media engagement [9][12]

Core Viewpoint - American Public Education (APEI) has consistently surpassed earnings estimates and is well-positioned for future earnings growth, making it a strong candidate for investors [1][5]. Earnings Performance - In the most recent quarter, APEI reported earnings of $0.63 per share, exceeding the expected $0.54 per share by 16.67% [2]. - In the previous quarter, APEI's earnings were $0.04 per share against an expectation of $0.01 per share, resulting in a surprise of 300% [2]. Earnings Estimates and Predictions - Recent estimates for APEI have been increasing, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8]. - APEI currently has an Earnings ESP of +10%, suggesting analysts are optimistic about its near-term earnings potential [8]. Zacks Rank and Success Rate - APEI holds a Zacks Rank of 3 (Hold), which, when combined with a positive Earnings ESP, indicates a high probability of beating consensus estimates, with a success rate of nearly 70% for stocks with this combination [6][8].

Core Viewpoint - American Public Education, Inc. (APEI) is demonstrating strong performance in the education market, with a notable 10.4% increase in stock price over the past three months, outperforming industry peers and major indices [1][3]. Group 1: Enrollment and Revenue Growth - APEI's growth is driven by successful marketing and enrollment strategies, particularly among military-affiliated students utilizing VA benefits, leading to increased registrations at American Public University System (APUS) and Hondros College of Nursing (HCN) [2][7]. - For Q1 2025, APEI anticipates total revenues to rise by 4-6% year over year, projecting revenues between $161 million and $163 million, with APUS net course registrations expected to grow by 1.5% to 3% and HCN by approximately 10% [5][6]. - HCN segment enrollment grew by about 14.9% from 2023, attributed to new campus openings and relocations [9]. Group 2: Cost Management and Strategic Initiatives - APEI is implementing cost optimization strategies to mitigate inflationary pressures, including consolidating its degree-granting institutions into a single entity for streamlined operations [10][11]. - The company has closed underperforming campuses and terminated costly leases to improve its balance sheet and enhance earnings growth potential [11]. Group 3: Competitive Position and Valuation - APEI is currently trading at a premium compared to industry peers on a forward 12-month price-to-earnings (P/E) ratio, indicating strong market potential despite challenges in determining an optimal entry point for investors [12]. - The earnings estimate trend for 2025 has seen a 5.9% downward revision in the past 30 days, yet the year-over-year growth rate for 2025 earnings estimates stands at 130.9% [18][20]. Group 4: Challenges and Headwinds - APEI faces challenges from soft enrollment trends in the Rasmussen University (RU) and Graduate School USA (GSUSA) segments, with RU's enrollment declining by 1.3% year over year and GSUSA revenues decreasing by 8.4% [4][15]. - Elevated inflation continues to pressure APEI's bottom line, with general and administrative expenses rising by 10.7% to $142 million and instructional costs increasing by 1% to $295.7 million in 2024 [16].

Core Insights - American Public University System (APUS) has joined the Skynet Robotic Telescope Network, enhancing its Space Studies program and providing students with access to advanced astronomical tools [1][2] - The partnership allows APUS students and faculty to utilize over a dozen global observatories, including a 20-meter radio telescope in West Virginia and facilities in Australia, promoting hands-on learning in observational astronomy [2][3] - APUS aims to inspire future generations in space exploration through this collaboration, emphasizing its commitment to education, innovation, and scientific discovery [4] Company Overview - APUS is recognized for delivering affordable, high-quality, and workforce-relevant higher education, with a history of 33 years and over 153,000 alumni from more than 80 countries [6] - The institution is accredited by the Higher Learning Commission and is a subsidiary of American Public Education, Inc. (Nasdaq: APEI) [7] - APUS ranks in the top 11% for students' return on educational investment among 4,500 colleges and universities nationwide, according to the Georgetown University Center on Education and the Workforce [6][9] Industry Context - The Skynet Robotic Telescope Network, based at the University of North Carolina, is one of the largest telescope networks globally, supported by the National Science Foundation and DoD STEM [5] - This collaboration reflects a growing trend in educational institutions leveraging technology to enhance STEM education and provide students with real-world research opportunities [2][4]

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].

Company Overview - American Public Education, Inc. (APEI) has appointed Richard J. Statuto to its Board of Directors, effective March 6, 2025, increasing the total board members to nine [1] - Statuto has over 30 years of leadership experience in the healthcare sector, including roles as President and CEO of Bon Secours Health System and CEO of St. Joseph Health System, both of which generated over $3 billion in revenue [2] Strategic Alignment - APEI's Chairman, Ric Andersen, expressed excitement about Statuto's appointment, highlighting his experience in driving growth at large health systems, which aligns with APEI's strategic objectives [3] - Angela Selden, APEI's President and CEO, noted that Statuto's success in mission-driven healthcare organizations will be crucial in shaping APEI's strategy [3] Leadership and Experience - Statuto has served on several boards, including the Catholic Health Association and the American Heart Association, showcasing his extensive network and leadership in healthcare [2] - He holds an MBA from Xavier University and a bachelor's degree from Vanderbilt University, further emphasizing his educational background [4] Educational Institutions - APEI operates through various institutions, including American Public University System, Rasmussen University, Hondros College of Nursing, and Graduate School USA, focusing on transforming lives and advancing careers [5] - APUS serves approximately 88,000 adult learners worldwide, primarily focusing on active-duty military and veteran students [6] - Rasmussen University, with a history of 125 years, serves around 14,600 students across 20 campuses and online, emphasizing nursing and health sciences [7] - Hondros College of Nursing is the largest educator of PN (LPN) nurses in Ohio, serving approximately 3,700 students [8] - Graduate School USA provides training to the federal workforce, catering to government professionals through customized training [9] Accreditation - APEI's institutions are accredited by recognized agencies, ensuring quality education and compliance with educational standards [10]

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]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 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, up from $45.5 million in the prior year [35] Business Line Data and Key Metrics Changes - APUS revenue in Q4 2024 increased to $82.4 million, a 3.8% rise compared to the prior year [31] - Rasmussen's Q4 2024 revenue was $57.5 million, a 9.3% increase year-over-year, with online enrollment up 9% [32] - Hondros College of Nursing saw a 20% revenue increase in Q4 2024, with total enrollment rising 19.3% [34] - Adjusted EBITDA for Rasmussen in Q4 2024 was $5.5 million, compared to $0.6 million in the prior year [33] Market Data and Key Metrics Changes - Overall net course registrations at APUS increased by 7% year-over-year in Q4 2024 [22] - For the full year 2024, APUS total net course registrations increased by 3% compared to 2023 [23] - Rasmussen experienced a 4% year-over-year enrollment increase in Q4 2024, continuing into Q1 2025 with a 7% increase [16] 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 enhancing student outcomes and NCLEX pass rates to improve ROI for students [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory, with 2025 expected to be a year of revenue and adjusted EBITDA growth [14] - 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 enrollments but expects recovery as systems are restored [46] Other Important Information - APEI's capital expenditures for 2024 were $21.1 million, with free cash flow for the year at $51.2 million [35] - The company remains net cash positive with total cash and equivalents at $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 [45][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 year-over-year - Increased advertising and higher labor costs were cited as primary drivers for the expected EBITDA contraction in Q1 2025 [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 [57][60] Question: Drivers of online growth for Rasmussen - The shift to organic lead generation and hyperlocal marketing strategies were highlighted as key factors driving enrollment growth [62][66]