Revenues Increase 65% in First Quarter 2008 Compared to the Prior
Year Period
CHARLES TOWN, W.Va.--(BUSINESS WIRE)--May 2, 2008--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 March 31,
2008.
Recent Highlights:
-- American Public Education reported first quarter 2008 revenues
increased 65% to $23.2 million, compared to $14.1 million in
the first quarter of 2007.
-- The Company announced net course registrations of
approximately 33,100 in the first quarter of 2008, a
year-over-year increase of 59%.
-- Net course registrations from new students in the first
quarter of 2008 increased to approximately 7,500, an increase
of 34% over the same period of 2007.
-- As of March 31, 2008, a total of approximately 33,000 students
were enrolled in American Public University System.
-- The Company reported net course registrations from students
using federal financial aid under Title IV programs increased
166% to approximately 4,000 in the first quarter of 2008,
compared to the same period of 2007. Approximately, 12% of net
course registrations were from Title IV students in the first
quarter of 2008.
-- Income from continuing operations before interest income and
income tax in the first quarter of 2008 increased to $5.5
million, compared to $2.7 million in the same period of 2007.
Operating margin in the first quarter of 2008 increased to
23.5%, compared to 19.1% in the first quarter of 2007.
-- Net income for the first quarter of 2008 increased to $3.4
million or $0.18 per diluted share, compared to $1.5 million
or $0.13 per diluted share in the same period of 2007. The
weighted average diluted shares outstanding for the first
quarter of 2008 and 2007 were approximately 18.8 million and
11.9 million, respectively.
-- American Public Education increased its full year 2008
earnings outlook to between $0.67 and $0.72 per diluted share.
-- American Military University (AMU) announced the signing of a
Memorandum of Understanding (MOU) with the U.S. Navy as the
final step to full acceptance into the Navy College Program
Distance Learning Partnership (NCPDLP). The agreement allows
AMU to join a select number of schools offering degree
programs in support of the Servicemembers Opportunity Colleges
(SOC) Degree Network System for the Marine Corps (SOCMAR), the
Coast Guard (SOCCOAST) and the Navy (SOCNAV).
Wallace E. Boston, Jr., Chief Executive Officer of American Public
Education, Inc. stated, "Our first quarter performance gives us the
confidence to increase our 2008 earnings per share outlook and
illustrates our ability to generate strong growth. Our quality, unique
degrees and affordability are attractive to students who view higher
education as the best means to career advancement and job security."
"Our continued strong performance is further bolstered by our high
referral rates, improved student retention, and by the fact that we
are seeing an increasing percentage of returning disenrolled students
- students who re-register for class after leaving school for 12
months or more," added Mr. Boston.
Financial and Other Results:
Total revenues for the first quarter of 2008 increased 65% to
$23.2 million, compared to total revenues of $14.1 million in the
first quarter of 2007. Income from continuing operations before
interest income and income tax in the first quarter of 2008 increased
to $5.5 million, compared to $2.7 million in the same period of 2007.
Operating margin in the first quarter of 2008 increased to 23.5%,
compared to 19.1% in the first quarter of 2007. Stock-based
compensation expense reduced operating income by $377,000 in the first
quarter of 2008 and $502,000 in the first quarter of 2007.
Net income for the first quarter of 2008 increased to $3.4 million
or $0.18 per diluted share, which includes $249,000 or $0.01 per
diluted share in stock-based compensation expense net of tax. This
compares to net income of $1.5 million or $0.13 per diluted share for
the first quarter of 2007, including $367,000 or $0.03 per diluted
share in stock-based compensation expense net of tax. The weighted
average diluted shares outstanding for the first quarter of 2008 and
2007 were approximately 18.8 million and 11.9 million, respectively.
Total cash and cash equivalents at March 31, 2008 were $31.8
million with no long-term debt. Cash from operations for the three
months ended March 31, 2008 was $7.0 million, compared to $4.5 million
in the same period of 2007. Capital expenditures were $2.2 million for
the three months ended March 31, 2008, which compares to $0.8 million
in capital expenditures in the same period of 2007. Depreciation and
amortization was $0.9 million for the three months ended March 31,
2008 and $0.6 million for the same period of 2007.
Net Course Registrations and Student Enrollment:
For the three months ended March 31,
2007 2008 % Change
-------- -------- --------
Net Course Registrations from New
Students 5,600 7,500 34%
Net Course Registrations 20,800 33,100 59%
As of March 31,
2007 2008 % Change
-------- -------- --------
Total Student Enrollment 19,300 33,000 71%
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 in the start of the second week of
class for the most current semester.
Second Quarter 2008 Outlook:
The following statements are based on current expectations. These
statements are forward-looking and actual results may differ
materially.
-- The Company expects net course registrations from new students
of approximately 7,600 and net course registrations of
approximately 32,000 in the quarter ending June 30, 2008.
-- The Company's second quarter 2008 revenue is expected to be
between $23.8 million and $24.5 million.
-- The Company estimates that second quarter 2008 net income,
including stock-based compensation expense, will be between
$2.6 million and $2.9 million or between $0.14 and $0.15 per
diluted share. The weighted average number of diluted shares
outstanding is expected to be between 18.8 and 18.9 million
shares in the three month period ending June 30, 2008.
Full Year 2008 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 approximately 33,500 and total net course
registrations of 139,000 or more in the twelve month period
ending December 31, 2008.
-- The Company expects full year 2008 revenues to be between $102
million and $104 million.
-- The Company estimates that full year 2008 net income,
including stock-based compensation expense, will be between
$12.8 million and $13.6 million or between $0.67 and $0.72 per
diluted share. The weighted average number of diluted shares
outstanding is expected to be between 18.9 and 19.1 million
shares in the twelve month period ending December 31, 2008.
Webcast:
A live webcast of the Company's first quarter earnings conference
call will be broadcast at 8:30 a.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).
Regionally and nationally accredited, APUS serves more than 33,000
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 "Full Year 2008 Outlook" and "Second
Quarter 2008 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 Company's Annual Report on Form 10-K for the year
ended December 31, 2008 as filed with the SEC. 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 Statement of Income
(In thousands, except per share data)
Three Months Ended
March 31,
-----------------------
2008 2007
----------- -----------
(Unaudited)
Revenues $ 23,241 $ 14,089
----------- -----------
Costs and expenses:
Instructional costs and services 9,912 6,105
Selling and promotional 2,177 1,439
General and administrative 4,803 3,236
Depreciation and amortization 898 618
----------- -----------
Total costs and expenses 17,790 11,398
----------- -----------
Income from operations before interest income
and income taxes 5,451 2,691
Interest income, net 242 144
----------- -----------
Income from operations before income taxes 5,693 2,835
Income tax expense 2,288 1,301
----------- -----------
Net income $ 3,405 $ 1,534
=========== ===========
Net Income per common share:
Basic $ 0.19 $ 0.13
=========== ===========
Diluted $ 0.18 $ 0.13
=========== ===========
Weighted average number of common shares:
Basic 17,735,908 11,863,268
=========== ===========
Diluted 18,767,995 11,914,613
=========== ===========
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.