Net Course Registrations Increase 63% in Fourth Quarter 2007
CHARLES TOWN, W.Va.--(BUSINESS WIRE)--March 11, 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 and year ended
December 31, 2007.
Recent Highlights:
-- American Public Education reports net course registrations of
approximately 27,830 in the fourth quarter 2007, a
year-over-year increase of 63%.
-- Net course registrations from new students in the fourth
quarter 2007 increased to approximately 6,890, an increase of
42% over the same period of 2006.
-- As of December 31, 2007, a total of approximately 30,130
students were enrolled in American Public University System.
-- Fourth quarter 2007 revenues increased 65% to $21.2 million,
compared to $12.9 million in the fourth quarter 2006.
-- Income from continuing operations before interest income and
income taxes increased to $5.1 million in the fourth quarter
of 2007, compared to a loss of $413,000 in the same period
2006. Stock-based compensation expense reduced each period's
operating income by $279,000 and $45,000, respectively.
-- Net income for the fourth quarter 2007 increased to $3.0
million or $0.19 per diluted share, which includes $229,000 or
$0.01 per diluted share in stock-based compensation expense
net of tax.
-- American Public University System received provisional
acceptance into the Navy College Program Distance Learning
Partnership (NCPDLP).
-- The West Virginia Board of Education (WVBE) approved American
Public University Systems' new Master of Education (M.Ed.) in
Administration & Supervision. This approval will allow
graduates to be licensed principals and administrators in West
Virginia and streamlines the process to be a licensed
principal nationwide due to West Virginia's reciprocity with
nearly all other U.S. States.
-- American Public University System expanded its relationship
with Ucompass.com, the university's e-learning provider. The
new agreement includes a perpetual license of Educator(TM)
software and long-term support services in addition to
increased collaboration on the development of next generation
e-learning technologies.
Wallace E. Boston, Jr., Chief Executive Officer of American Public
Education, Inc. stated, "Our focus on academic quality and expanding
access to affordable higher education led to a year of great
achievement with record student enrollment, strong financial
performance and a successful initial public offering. This focus on
affordability is especially relevant in today's current economic and
lending environment. Our tuition is set at levels that can be fully
financed through traditional federal student loans."
"Recent developments, such as our provisional acceptance into the
Navy College Program Distance Learning Partnership and the launch of
several new degree programs, illustrate our commitment to serving the
needs of our students. These exciting events, combined with the
execution of our growth strategy and focus on our social mission,
position us for continued success in 2008," added Mr. Boston.
Financial and Other Results:
Total revenues for the fourth quarter 2007 increased 65% to $21.2
million, compared to total revenues of $12.9 million in the fourth
quarter 2006. Income from continuing operations before interest income
and income tax in the fourth quarter 2007 increased to $5.1 million,
compared to a loss of $413,000 in the same period of 2006. Fourth
quarter 2006 operating income was reduced by a $3.1 million write-off
of software development costs. Stock-based compensation expense
reduced each period's operating income by $279,000 in 2007 and $45,000
in 2006. Net income for the fourth quarter 2007 increased to $3.0
million or $0.19 per diluted share, which includes $229,000 or $0.01
per diluted share in stock-based compensation expense net of tax. This
compares to net income of $20,000 or less than $0.01 per diluted share
for the fourth quarter 2006, including $41,000 or less than $0.01 per
diluted share in stock-based compensation expense net of tax.
For the twelve months ended December 31, 2007, total revenues were
$69.1 million, an increase of 73% compared to total revenues of $40.0
million in the same period of 2006. Income from continuing operations
before interest income and income tax for the twelve months ended
December 31, 2007 increased to $14.7 million, compared to $2.9 million
in the same period of 2006. Stock-based compensation expense reduced
each period's operating income by $1.0 million and $284,000,
respectively. Net income for the twelve months ended December 31, 2007
increased to $8.8 million or $0.64 per diluted share, which includes
$835,000 or $0.06 per diluted share in stock-based compensation
expense net of tax. This compares to net income of $1.8 million or
$0.15 per diluted share for the full year 2006, including $227,000 or
$0.02 per diluted share in stock-based compensation expense net of
tax.
Total cash and cash equivalents at December 31, 2007 were $27.0
million with no long-term debt. Cash from operations for the twelve
months ended December 31, 2007 was $17.5 million, compared to $8.9
million in the same period of 2006. Capital expenditures were $6.8
million for the twelve months ended December 31, 2007, which compares
to $4.5 million in capital expenditures in the same period of 2006.
Depreciation and amortization was $2.8 million for the twelve months
ended December 31, 2007 and $2.0 million for the same period of 2006.
The Company completed a secondary offering of 3,744,500 shares of
its common stock at $35.50 per share, before underwriting discounts
and commissions, in February 2008. A 30-day option was exercised by
the underwriters to sell up to an additional 500,175 shares at the
public offering price to cover over-allotments. The secondary offering
closed on February 19, 2008 and the exercise of the over-allotment
option closed on February 28, 2008. The Company sold a total of 25,000
shares in the offering and the balance was sold by existing
stockholders.
Net Course Registrations and Student Enrollment:
For the three months ended December 31,
2006 2007 % Change
------ ------ --------
Net Course Registrations from New Students 4,840 6,890 42%
Net Course Registrations 17,070 27,830 63%
For the twelve months ended December 31,
2006 2007 % Change
------ ------ --------
Net Course Registrations from New Students 14,410 24,700 71%
Net Course Registrations 54,830 94,850 73%
As of December 31,
2006 2007 % Change
------ ------ --------
Total Student Enrollment 17,910 30,130 68%
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.
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 137,000 or more in the twelve month period
ending December 31, 2008.
-- The Company expects full year 2008 revenue to be between $100
and $103 million.
-- Income from continuing operations before interest income and
income taxes is expected to be between $19.1 million and $20.1
million in the full year 2008, including stock-based
compensation expense of between $1.5 million and $1.7 million.
-- The Company estimates that full year 2008 net income,
including stock-based compensation expense, will be between
$11.9 million and $12.5 million or between $0.63 and $0.66 per
diluted share. The weighted average number of diluted shares
outstanding is expected to be approximately 19.0 million in
the twelve month period ending December 31, 2008.
Webcast:
A live webcast of the Company's fourth quarter earnings conference
call will be broadcast at 5:00 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).
Regionally and nationally accredited, APUS serves more than 30,000
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" 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 dated February 13, 2008 as filed with the SEC for the
Company's follow-on 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)
Unaudited
Three Months Ended
December 31,
--------------------------
2006 2007
------------ ------------
(In thousands, except per
share amounts)
Revenues $ 12,896 $ 21,221
------------ ------------
Costs and expenses:
Instructional costs and services 5,401 8,780
Selling and promotional 1,362 1,931
General and administrative 2,689 4,567
Write-off of software development
project 3,148 --
Depreciation and amortization 709 817
------------ ------------
Total costs and expenses 13,309 16,095
------------ ------------
Income from continuing operations before
interest income and income taxes ( 413) 5,126
Interest income, net 78 293
------------ ------------
Income from continuing operations before
income taxes ( 335) 5,419
Income tax expense (benefit) ( 382) 2,461
------------ ------------
Income from continuing operations 47 2,958
Loss from discontinued operations, net of
income tax benefit of $336 and $314 in
2006 and 2007, respectively ( 27) --
------------ ------------
Net income (loss) attributable to common
stockholders $ 20 $ 2,958
============ ============
Income (loss) from continuing operations
per common share:
Basic $ 0.00 $ 0.20
============ ============
Diluted $ 0.00 $ 0.19
============ ============
Net income (loss) attributable to common
stockholders per common share:
Basic $ 0.00 $ 0.20
============ ============
Diluted $ 0.00 $ 0.19
============ ============
Weighted average number of common shares:
Basic 11,793,815 15,039,149
============ ============
Diluted 12,217,493 15,937,278
============ ============
Unaudited
Year Ended
December 31,
--------------------------
2006 2007
------------ ------------
(In thousands, except per
share amounts)
Revenues $ 40,045 $ 69,095
------------ ------------
Costs and expenses:
Instructional costs and services 17,959 29,479
Selling and promotional 4,895 6,765
General and administrative 9,150 15,335
Write-off of software development
project 3,148 --
Depreciation and amortization 1,953 2,825
------------ ------------
Total costs and expenses 37,105 54,404
------------ ------------
Income from continuing operations before
interest income and income taxes 2,940 14,691
Interest income, net 289 888
------------ ------------
Income from continuing operations before
income taxes 3,229 15,579
Income tax expense (benefit) 771 6,829
------------ ------------
Income from continuing operations 2,458 8,750
Loss from discontinued operations, net of
income tax benefit of $336 and $314 in
2006 and 2007, respectively ( 660) --
------------ ------------
Net income (loss) attributable to common
stockholders $ 1,798 $ 8,750
============ ============
Income (loss) from continuing operations
per common share:
Basic $ 0.21 $ 0.69
============ ============
Diluted $ 0.20 $ 0.64
============ ============
Net income (loss) attributable to common
stockholders per common share:
Basic $ 0.15 $ 0.69
============ ============
Diluted $ 0.15 $ 0.64
============ ============
Weighted average number of common shares:
Basic 11,741,191 12,758,833
============ ============
Diluted 12,177,693 13,600,607
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.