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• Content META

  Title	American Public Education : Q3 2024 American Public Education Inc Earnings Presentation
  ID	4078348
  External ID	7296435217
  Author	Unknown
  Published Date	Nov. 12, 2024, 4:43 p.m.
  Summary	November 12, 2024 at 05:42 pm EST 3Q24 Earnings Presentation November 2024 FORWARD- LOOKING STATEMENTS Statements made in this presentation regarding American Public Education, Inc. or its subsid
  Tags	None
  URL	https://www.marketscreener.com/quote/stock/american-public-education-66750/news/american-public-education-q3-2024-american-public-education-inc-earnings-presentation-48341550/
  Sentiment	Negative: 0.49785    Neutral: 0.46731    Positive: 0.03484
  Relevance	0.03256

• Content Details

  Content ID	2355828
  Key	860848f6-04c9-4f76-a1e9-6af92de00072
  Content	November 12, 2024 at 05:42 pm EST 3Q24 Earnings Presentation November 2024 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," "expect," "intend," "may," "plan," "potentially," "project," "should," "will," "would," and similar words or their opposites. Forward-looking statements include, without limitation, statements regarding expectations for growth, registration, enrollments, revenues, net income, earnings per share, EBITDA and Adjusted EBITDA, free cash flow, and plans with respect to and future impacts of recent, current and future initiatives. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, among others, risks related to: the Company's failure to comply with regulatory and accrediting agency requirements, including the "90/10 Rule", and to maintain institutional accreditation and the impacts of any actions the Company may take to prevent or correct such failure; the Company's dependence on the effectiveness of its ability to attract students who persist in its subsidiary institutions' programs; changing market demands; declines in enrollments at the Company's subsidiary institutions; the enactment of legislation that adversely impacts the Company or its subsidiary institutions; the Company's inability to effectively brand or market its subsidiary institutions and its subsidiary institutions' programs; the Company's inability to maintain strong relationships with the military and maintain course registrations and enrollments from military students; the loss or disruption of the Company's ability to receive funds under tuition assistance programs or the reduction, elimination, or suspension of tuition assistance; adverse effects of changes the Company makes to improve the student experience and enhance the ability to identify and enroll students who are likely to succeed; the Company's need to successfully adjust to future market demands by updating existing programs and developing new programs; the Company's loss of eligibility to participate in Title IV programs or ability to process Title IV financial aid; economic and market conditions and changes in interest rates; difficulties involving acquisitions; the Company's indebtedness and preferred stock; the Company's dependence on and the need to continue to invest in its technology infrastructure, including with respect to third-party vendors; the inability to recognize the anticipated benefits of the Company's cost savings and revenue generating efforts; the Company's ability to manage and limit its exposure to bad debt; and the risk factors described in the risk factor section and elsewhere in the Company's most recent annual report on Form 10-K and quarterly report on Form 10-Q and in the Company's other SEC filings. You should not place undue reliance on any forward-looking statements. The Company undertakes no obligation to update publicly any forward-looking statements for any reason, unless required by law, even if new information becomes available or other events occur in the future. Executive Summary APEI is a market leader in the post-secondary education of active-duty military, veterans, new nurses, and health professionals, segments that have demonstrated stable and long-term demand. $153.1 M $731 K 3Q24 Highlights APEI Revenue: $153.1 million - fourth consecutive quarter of year- over-year growth Net income available to common stockholders: $731,000 and net income per diluted common share of $0.04 in 3Q24 vs. ($4.9) million and ($0.27) in 3Q23. 3Q23 included a $5.2 million loss on equity investment. Excluding that, 3Q23 net income per diluted share would have been $0.02 3Q24 Adjusted EBITDA of $12.9 million, above our guidance range 4Q24 and Full Year 2024 Forecast 4Q24 as compared with 4Q23: Enrollment at Rasmussen increased 4% - the second consecutive quarter of year over year enrollment growth Rasmussen is also on pace to deliver positive adjusted EBITDA in 2H24 Hondros increased 19% -- the 19 th consecutive quarter of year over year enrollment growth APUS total net course registrations are expected to grow 4% to 6% APEI is forecasting Full Year 2024 Revenue, Net Income and Adj. EBITDA guidance: Revenue is greater than 2023 at $620 - $625 million Net Income of $7 - $9 million Adjusted EBITDA is greater than 2023 at $64 - $67 million Both within 2024 annual guidance range provided in 1Q24 1. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, less non-recurring expenses, such as severance, and non-cash expenses, such as stock compensation) is a non-GAAP financial measure. Please refer to Appendix for GAAP to non-GAAP reconciliation. Segment Revenue APUS increased revenue year over year and is expected to grow in net course registrations in 4Q24. Rasmussen and Hondros are experiencing year over year revenue growth and positive enrollment trends. APUS has delivered consistent year-over-year growth driven by modest increases in registrations and targeted tuition and fee increases Rasmussen continues to stabilize and has turned to positive year over year revenue growth and enrollment trends 4Q24 enrollment growth is 4% over 4Q23 Second consecutive quarter of year-over-year revenue growth Hondros delivered strong revenue growth of 13% in 3Q24 compared to 3Q23 4Q24 enrollment growth is 19% over 4Q23 19 consecutive quarters of year-over-year enrollment growth Profitability TTM Adj. EBITDA As of 9/30/24 TTM Adj. EBITDA Margin As of 9/30/24 Continued registration growth in 2024 with select tuition/fee increases and lower marketing spend Stabilizing environment and positive enrollment comp in 3Q24. 4Q24 enrollment trends are even higher Rasmussen is on a trajectory to positive EBITDA in 2H24 Hondros enrollments have grown at double-digit rates for the 5 of the last 6 quarters Government spending uncertainty impacted 1H24 revenue and adjusted EBITDA. Growth returning in 4Q24 1. Please refer to appendix for GAAP to non-GAAP reconciliation Education Unit Profile ($ inmillions) Note: See note 16 to the financial statements included in the 2023 10-K. Reflects income (loss) from operations before interest, income taxes, gain (loss) from acquisitions, + depreciation & amortization. Please refer to appendix for GAAP to non-GAAP reconciliation. APUS excludes $2.8MM of losses in 4Q23 related to Loss on Disposal of Long-lived assets and Losses on assets held for sale. Rasmussen excludes a non-cash impairment of $64MM in 2Q23. Also excludes $2.4MM for Collegis transition services expense in 1Q23, $2.9MM for lease termination and campus consolidation expense in 1Q24 and $0.8MM in lease termination costs in 2Q24. GSUSA and Corporate combined comprise the Corporate & Other segment, as discussed in footnote 16 within the 2023 10-K disclosure. Balance Sheet & Cash Flow Strong Balance Sheet with $162M in Cash As of September 30, and December 31 Please refer to appendix for GAAP to non-GAAP reconciliation Free cash flow is defined as Adjusted EBITDA less capex 9 Months Ended September 30 Guidance These statements are based on current expectations. These statements are forward-looking and actual results may differ materially. FY 2024 FY2024 Revenue forecasted to be higher than 2023 FY2024 Net Income guidance equals $0.39 - $0.51 per diluted share FY2024 Adjusted EBITDA forecasted to be higher than 2023 $19 - $22 million anticipated capex in 2024 Positive year over year enrollment at Rasmussen Rasmussen expected to be EBITDA positive in 2H 2024 1. Please refer to appendix for GAAP to non-GAAP reconciliation About APEI Registrations & Enrollments 3Q24 LTM Net Course Registrations APUS has delivered consistently strong net course registrations since 2020 driven by continued strength in military and growing enrollments in veterans and military-affiliated families 4Q24 Enrollment Year-over-year Rasmussen enrollments have been improving since 2Q23 and delivered positive total enrollments in 3Q24 and 4Q24 4Q24 Enrollment Hondros enrollments have grown year over year for the last nineteen consecutive quarters and at double-digit rates for 5 of the last 6 quarters Attachments Original document Permalink Disclaimer American Public Education Inc. published this content on November 12, 2024 , and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 12, 2024 at
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