American Public Education(APEI) - 2024 Q1 - Quarterly Results

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]