Core Insights - EpicQuest Education is expanding its foundational programs in China, with a new agreement with South China University of Technology, marking its third such program in the country [1][3] - The two-year foundational program allows students to transfer to Davis' Toledo, Ohio campus for their final two years, facilitating a pathway to a four-year bachelor's degree [1][4] - The company emphasizes the importance of providing options for students to achieve their academic and career goals [1] Revenue Diversification - EpicQuest Education has multiple revenue streams, including those from its US and Canada-based institutions, alongside its foundational programs [1][2] - The foundational programs at elite Chinese universities like Peking University and Shanghai Jiao Tong University further enhance the company's revenue potential [3] Enrollment Expectations - The foundational program at South China University of Technology is expected to enroll approximately 120 students per incoming class, with enrollment anticipated to accelerate after China's national entrance examination in June 2025 [4] Strategic Growth Plan - The company aims for internationalization as a key element of its growth strategy, focusing on international recruitment and globalized learning [5] - EpicQuest Education seeks to establish itself as a leading international service provider of higher learning [5] Institutional Background - South China University of Technology is recognized as one of China's leading universities, particularly noted for its engineering programs and global partnerships [6] - The university hosts over 39,000 students, including more than 2,000 international students from over 100 countries [6] Company Overview - EpicQuest Education provides comprehensive education solutions for students seeking university degrees in the US, Canada, and the UK [7] - The company operates EduGlobal University in British Columbia and holds a 70% stake in Davis University in Ohio [7][9]

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 - For Q4 2024, revenue was $423 million, and adjusted EBITDA was $141 million, representing a 10% year-over-year increase in revenue on an organic constant currency basis, driven by a 5% increase in total enrollment volume [21][22] - Full year 2024 revenue was $1.567 billion, with adjusted EBITDA of $450 million, resulting in an adjusted EBITDA margin of 28.7%, a historic high for the company [23][24] - Full year net income was $296 million, leading to earnings per share of $1.92 [24] Business Line Data and Key Metrics Changes - In Mexico, new enrollments increased by 4% for the year, with revenue growth of 10% driven by an 8% increase in average total enrollments [29] - In Peru, new enrollments increased by 6% for the year, with revenue growth of 4% driven by a 2% increase in average total enrollments [32] Market Data and Key Metrics Changes - The company remains the largest higher education provider in Mexico and Peru, with strong demand for quality higher education driven by rising participation rates and strong wage premiums for graduates [9][14] - The economic outlook for Peru is positive, with GDP growth expected to reach approximately 3% in 2025, while Mexico's GDP growth is anticipated to be around 1% [16][53] Company Strategy and Development Direction - The company plans to open four new campuses for its value brands, with two expected to launch in 2025, marking the first new campus launches since 2019 [13] - Continued investment in digital education is a priority, alongside maintaining a strong focus on academic quality and student outcomes [36][44] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the geopolitical uncertainties in Mexico, noting that while there may be some impact on enrollments, the company has proven resilient in various economic conditions [15][50] - The company anticipates flat to slightly down year-over-year reported revenues for 2025, but expects growth in adjusted EBITDA and unlevered free cash flow due to local currency revenue growth and margin expansion efforts [19][41] Other Important Information - The company returned over $100 million to shareholders in 2024 and has a strong balance sheet with a net debt position of $11 million [8][33] - New non-GAAP metrics for adjusted net income and adjusted earnings per share were introduced to provide a clearer picture of the company's underlying profitability [25][26] Q&A Session Summary Question: Impact of tariffs and economic environment in Mexico - Management acknowledged that while geopolitical discussions around tariffs do not directly impact the business, a slowdown in foreign direct investment has affected GDP growth, which in turn impacts enrollments [47][49] Question: Capital allocation policy - The company aims for a 50% free cash flow conversion on EBITDA and plans to return 50% of available free cash flow to shareholders after supporting growth [54][56] Question: Tax rate and Peru intake - The effective tax rate is expected to be below 40%, and management is optimistic about the upcoming intake period in Peru, despite some lingering effects from the previous recession [60][63][64]