Company Reports 71% Increase in Total Net Course Registrations
CHARLES TOWN, W.Va.--(BUSINESS WIRE)--Nov. 16, 2007--American
Public Education, Inc. (NASDAQ:APEI) - parent company of online
learning provider American Public University System, which operates
through American Military University and American Public University -
announced strong financial results for the quarter ended September 30,
2007.
Third Quarter Highlights:
- American Public Education reports net course registrations
from new students at American Public University System of
6,660 in the third quarter 2007, an increase of 60% over the
same period of 2006.
- Total net course registrations in the third quarter 2007
increased to 25,290, a year-over-year increase of 71%.
- As of September 30, 2007, a total of 26,900 students were
enrolled in American Public University System.
- Third quarter 2007 revenues increased 73% to $17.6 million,
compared to $10.2 million in the third quarter 2006.
- Income from continuing operations before interest income and
income taxes increased 137% to $3.6 million in the third
quarter of 2007, compared to $1.5 million in the same period
2006. Stock-based compensation expense reduced each period's
operating income by $136,000 and $47,000, respectively.
- Net income for the third quarter 2007 increased 163% to $2.2
million or $0.18 per diluted share, which includes $112,000 or
less than $0.01 per diluted share in stock-based compensation
expense net of tax.
Wallace E. Boston, Jr., chief executive officer of American Public
Education, Inc. stated, "Our third quarter results are a positive
reflection of our academic quality, our focus on student outcomes, and
our 2006 attainment of regional accreditation and participation
in federal student aid."
Financial and Other Results:
Total revenues for the third quarter 2007 increased 73% to $17.6
million, compared to total revenues of $10.2 million in the third
quarter 2006. Income from continuing operations before interest income
and income tax in the third quarter 2007 increased 137% to $3.6
million, compared to $1.5 million in the same period of 2006.
Stock-based compensation expense reduced each period's operating
income by $136,000 and $47,000, respectively. Net income for the third
quarter 2007 increased 163% to $2.2 million or $0.18 per diluted
share, which includes $112,000 or less than $0.01 per diluted share in
after-tax stock-based compensation expense.
For the nine months ended September 30, 2007, total revenues were
$47.9 million, an increase of 76% compared to total revenues of $27.1
million in the same period of 2006. Income from continuing operations
before interest income and income tax for the nine months ended
September 30, 2007 increased 185% to $9.6 million, compared to $3.4
million in the same period of 2006. Stock-based compensation expense
reduced each period's operating income by $754,000 and $239,000,
respectively. Net income for the nine months ended September 30, 2007
increased 226% to $5.8 million or $0.46 per diluted share, which
includes $606,000 or $0.05 per diluted share in after-tax stock-based
compensation expense.
Total cash and cash equivalents at September 30, 2007 were $20.3
million with no long-term debt. Cash from operations for the nine
months ended September 30, 2007 was $14.5 million, compared to $5.9
million in the same period of 2006. Capital expenditures were $3.7
million for the nine months ended September 30, 2007, which compares
to $3.8 million in capital expenditures in the same period of 2006.
Depreciation and amortization was $2.0 million for the nine months
ended September 30, 2007 and $1.2 million for the same period of 2006.
The Company completed its initial public offering of 5,390,625
shares of its common stock at $20.00 per share, before underwriting
discounts and commissions. The offering closed on November 14, 2007
and included the exercise in full by the underwriters of an option to
purchase additional shares at the initial public offering price to
cover over-allotments. On November 8, 2007, the Company declared a
special distribution of $7.63 per share, or $93,750,000 in the
aggregate, to be paid to the shareholders of record immediately prior
to the offering, payable upon the closing of the offering with
offering proceeds.
Net Course Registrations and Student Enrollment:
For the three months ended September 30,
2006 2007 % Change
------ ------ --------
Net Course Registrations from New
Students 4,160 6,660 60%
Total Net Course Registrations 14,790 25,290 71%
As of September 30,
2006 2007 % Change
------ ------ --------
Total Student Enrollment 15,500 26,900 74%
Note: Net course registrations represent the aggregate number of
classes in which students remain enrolled after the date by which they
may drop the course without financial penalty. Total student
enrollment is the number of students who have completed at least one
course in the last 12 months or are currently in the start of the
second week of class for the most current semester.
Fourth Quarter 2007 Outlook:
The following statements are based on current expectations. These
statements are forward-looking and actual results may differ
materially.
- The Company anticipates net course registrations from new
students of 6,800 or more and total net course registrations
of 27,000 or more in the fourth quarter 2007.
- The Company expects fourth quarter 2007 revenues of between
$19.0 million and $20.5 million.
- Income from continuing operations before interest income and
income taxes is expected to be between $3.4 million and $4.2
million in the fourth quarter 2007, excluding the effect of
stock-based compensation expense.
- The Company currently believes that it will achieve net income
of between $2.3 and $2.7 million for the fourth quarter 2007,
excluding the effect of stock-based compensation expense. The
weighted average number of diluted shares outstanding in the
fourth quarter will be impacted by the Company's initial
public offering which closed on November 14, 2007.
- Full-year 2007 net income is expected to be between $8.6 and
$9.0 million, excluding the effect of stock-based compensation
expense. The weighted average number of diluted shares
outstanding in the full-year 2007 will be impacted by the
Company's initial public offering which closed on November 14,
2007.
Webcast:
A live webcast of the Company's third quarter earnings conference
call will be broadcast at 3:00 p.m. eastern time today. This call will
be open to listeners who log in through the Company's investor
relations website, www.AmericanPublicEducation.com.
A replay of the live webcast will also be available starting
approximately one hour after the conclusion of the live conference
call. The replay will be archived and available to listeners for one
year.
About American Public Education, Inc.
American Public Education, Inc. (NASDAQ:APEI) is an online
provider of higher education focused primarily on serving the military
and public service communities. American Public University System
(APUS), wholly owned by APEI, comprises two universities - American
Military University (AMU) and American Public University (APU).
Nationally and regionally accredited, APUS serves over 25,000
part-time students who live and work in all 50 states and more than
130 countries; and offers 57 degree programs and 48 certificate
programs in fields ranging from homeland security, military studies,
intelligence, and criminal justice to technology, business
administration, public health, and liberal arts.
Forward Looking Statements
Statements made in this press release regarding American Public
Education, or its subsidiaries, that are not historical facts are
forward-looking statements based on current expectations, assumptions,
estimates and projections about American Public Education and the
industry. These forward-looking statements are subject to risks and
uncertainties that could cause actual future events or results to
differ materially from such statements. Forward-looking statements can
be identified by words such as "anticipate", "believe", "could",
"estimate", "expect" "intend", "may", "should" "will" and "would".
These forward-looking statements include, without limitation,
statements under the heading "Fourth Quarter 2007 Outlook" above and
statements regarding expected growth. Actual results could differ
materially from those expressed or implied by these forward-looking
statements as a result of various factors, including the various risks
described in the "Risk Factors" section and elsewhere in the
Prospectus that forms a part of the Registration Statement on Form S-1
(SEC File No. 333-145185) filed with the Securities and Exchange
Commission on November 9, 2007, for the Company's initial public
offering. The Company undertakes no obligation to update publicly any
forward-looking statements for any reason, even if new information
becomes available or other events occur in the future.
AMERICAN PUBLIC EDUCATION, INC.
Consolidated Statements of Income
(In thousands, except share and per share data)
Three Months Ended
------------------------
September 30,
------------------------
2007 2006
----------- ------------
(Unaudited)
Revenues $ 17,612 $ 10,188
----------- ------------
Costs and expenses:
Instructional costs and services 7,708 4,635
Selling and promotional 1,946 1,158
General and administrative 3,695 2,436
Depreciation and amortization 685 451
----------- ------------
Total costs and expenses 14,034 8,680
----------- ------------
Income from continuing operations before
interest income and income taxes 3,578 1,508
Interest income, net 257 85
----------- ------------
Income from continuing operations before
income taxes 3,835 1,593
Income tax expense 1,613 210
----------- ------------
Income from continuing operations 2,222 1,383
Loss from discontinued operations, net of
income tax benefit of $228 and $302 for the
three and nine months ended September 30,
2006, respectively - (538)
----------- ------------
Net income $ 2,222 $ 845
=========== ============
Income from continuing operations per common
share:
Basic $ 0.18 $ 0.12
=========== ============
Diluted $ 0.18 $ 0.11
=========== ============
Net Income per common share:
Basic $ 0.18 $ 0.07
=========== ============
Diluted $ 0.18 $ 0.07
=========== ============
Weighted average number of common shares:
Basic 12,107,018 11,765,600
=========== ============
Diluted 12,640,799 12,175,384
=========== ============
Nine Months Ended
------------------------
September 30,
------------------------
2007 2006
----------- ------------
(Unaudited)
Revenues $ 47,873 $ 27,149
----------- ------------
Costs and expenses:
Instructional costs and services 20,697 12,558
Selling and promotional 4,834 3,533
General and administrative 10,769 6,461
Depreciation and amortization 2,007 1,244
----------- ------------
Total costs and expenses 38,307 23,796
----------- ------------
Income from continuing operations before
interest income and income taxes 9,566 3,353
Interest income, net 595 211
----------- ------------
Income from continuing operations before
income taxes 10,161 3,564
Income tax expense 4,368 1,153
----------- ------------
Income from continuing operations 5,793 2,411
Loss from discontinued operations, net of
income tax benefit of $228 and $302 for the
three and nine months ended September 30,
2006, respectively - (633)
----------- ------------
Net income $ 5,793 $ 1,778
=========== ============
Income from continuing operations per common
share:
Basic $ 0.48 $ 0.21
=========== ============
Diluted $ 0.46 $ 0.20
=========== ============
Net Income per common share:
Basic $ 0.48 $ 0.15
=========== ============
Diluted $ 0.46 $ 0.15
=========== ============
Weighted average number of common shares:
Basic 11,990,375 11,723,458
=========== ============
Diluted 12,530,269 12,159,350
=========== ============
CONTACT: American Public Education, Inc.
Harry T. Wilkins, CPA
Executive Vice President and Chief Financial Officer
304-724-3722
or
Christopher L. Symanoskie
Director, Investor Relations
703-334-3880
SOURCE: American Public Education, Inc.