Net Course Registrations from New Students Increase 60% in Second
Quarter 2008 Compared to the Prior Year Period
CHARLES TOWN, W. Va.--(BUSINESS WIRE)--Aug. 12, 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 financial results for the quarter ended June 30, 2008.
Recent Highlights:
-- The Company announced net course registrations of
approximately 33,300 in the second quarter of 2008, a
year-over-year increase of 59%.
-- Net course registrations from new students in the second
quarter of 2008 increased to approximately 8,800, an increase
of 60% over the same period of 2007.
-- As of June 30, 2008, a total of approximately 35,900 students
were enrolled in American Public University System.
-- American Public Education reported second quarter 2008
revenues increased 55% to $25.0 million, compared to $16.2
million in the second quarter of 2007.
-- Income from operations before interest income and income tax
expense in the second quarter of 2008 increased to $5.8
million, compared to $3.3 million in the same period of 2007.
-- Net income for the second quarter of 2008 increased 93% to
$3.9 million or $0.21 per diluted share, compared to $2.0
million or $0.17 per diluted share in the same period of 2007.
The weighted average diluted shares outstanding for the second
quarter of 2008 and 2007 were approximately 18.8 million and
12.1 million, respectively.
-- American Public Education introduces third quarter 2008
earnings outlook of between $0.17 and $0.18 per diluted share.
-- The Company also increased its full year 2008 earnings outlook
to between $0.76 and $0.80 per diluted share.
Financial and Other Results:
Total revenues for the second quarter of 2008 increased 55% to
$25.0 million, compared to total revenues of $16.2 million in the
second quarter of 2007. Income from operations before interest income
and income tax expense in the second quarter of 2008 increased to $5.8
million, compared to $3.3 million in the same period of 2007.
Operating margin in the second quarter of 2008 increased to 23.0%,
compared to 20.4% in the second quarter of 2007. Stock-based
compensation expense reduced operating income by $469,000 and $116,000
in the second quarter of 2008 and 2007, respectively.
Net income for the second quarter of 2008 increased to $3.9
million or $0.21 per diluted share, which includes $307,000 or $0.02
per diluted share in stock-based compensation expense net of tax. This
compares to net income of $2.0 million or $0.17 per diluted share for
the second quarter of 2007, including $126,000 or $0.01 per diluted
share in stock-based compensation expense net of tax. The weighted
average diluted shares outstanding for the second quarter of 2008 and
2007 were approximately 18.8 million and 12.1 million, respectively.
For the six months ended June 30, 2008 total revenues were $48.2
million, an increase of 59% compared to total revenues of $30.3
million in the same period of 2007. Income from operations before
interest income and income tax for the six months ended June 30, 2008
increased to $11.2 million, compared to $6.0 million in the same
period of 2007. Stock-based compensation expense reduced each period's
operating income by $846,000 and $618,000, respectively. Net income
for the six months ended June 30, 2008 increased 105% to $7.3 million
or $0.39 per diluted share, which includes $556,000 or $0.03 per
diluted share in stock-based compensation expense net of tax. This
compares to net income of $3.6 million or $0.30 per diluted share in
the same period of 2007, including $493,000 or $0.04 per diluted share
in stock-based compensation expense net of tax.
Total cash and cash equivalents at June 30, 2008 were $34.9
million with no long-term debt. Cash from operations for the six
months ended June 30, 2008 was $12.0 million, compared to $9.9 million
in the same period of 2007. Capital expenditures were $4.6 million for
the six months ended June 30, 2008, which compares to $1.8 million in
capital expenditures in the same period of 2007. Depreciation and
amortization was $1.9 million for the six months ended June 30, 2008
and $1.3 million for the same period of 2007.
Net Course Registrations and Student Enrollment:
For the three months ended June 30,
2007 2008 % Change
--------- ------------ -----------
Net Course Registrations
from New Students 5,500 8,800 60%
Net Course Registrations 20,900 33,300 59%
For the six months ended June 30,
2007 2008 % Change
--------- ------------ -----------
Net Course Registrations
from New Students 11,100 16,300 47%
Net Course Registrations 41,700 66,400 59%
As of June 30,
2007 2008 % Change
--------- ------------ -----------
Total Student Enrollment 22,900 35,900 57%
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.
Third 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 9,100 and net course registrations of
approximately 36,250 in the quarter ending September 30, 2008.
-- The Company's third quarter 2008 revenue is expected to be
between $25.5 million and $26.2 million.
-- The Company estimates that third quarter 2008 net income,
including stock-based compensation expense, will be between
$3.1 million and $3.4 million or between $0.17 and $0.18 per
diluted share. The weighted average number of diluted shares
outstanding is expected to be between 18.9 and 19.0 million
shares in the three month period ending September 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 34,500 and total net course
registrations of 141,000 or more in the twelve month period
ending December 31, 2008.
-- The Company expects full year 2008 revenues to be between
$103.0 million and $105.5 million.
-- The Company estimates that full year 2008 net income,
including stock-based compensation expense, will be
approximately $14.5 million to $15.1 million or between $0.76
and $0.80 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 second 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 35,000
part-time students who live and work in all 50 states and more than
100 countries; and offers 73 degree 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 "Third
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, 2007 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 Statements of Income
(In thousands, except share and per share data)
Three Months Ended
-----------------------------
June 30,
-----------------------------
2008 2007
-------------- -------------
(Unaudited)
Revenues $ 24,999 $ 16,173
-------------- -------------
Costs and expenses:
Instructional costs and services 10,521 6,886
Selling and promotional 2,613 1,449
General and administrative 5,072 3,837
Depreciation and amortization 1,031 705
-------------- -------------
Total costs and expenses 19,237 12,877
-------------- -------------
Income from operations before
interest income and income taxes 5,762 3,296
Interest income, net 196 194
-------------- -------------
Income before income taxes 5,958 3,490
Income tax expense 2,033 1,454
-------------- -------------
Net income $ 3,925 $ 2,036
============== =============
Net Income per common share:
Basic $ 0.22 $ 0.17
============== =============
Diluted $ 0.21 $ 0.17
============== =============
Weighted average number of
common shares:
Basic 17,806,884 11,998,159
============== =============
Diluted 18,791,644 12,052,532
============== =============
Six Months Ended
-----------------------------
June 30,
-----------------------------
2008 2007
-------------- -------------
(Unaudited)
Revenues $ 48,240 $ 30,262
-------------- -------------
Costs and expenses:
Instructional costs and services 20,433 12,991
Selling and promotional 4,790 2,888
General and administrative 9,875 7,073
Depreciation and amortization 1,929 1,323
-------------- -------------
Total costs and expenses 37,027 24,275
-------------- -------------
Income from operations before
interest income and income taxes 11,213 5,987
Interest income, net 438 338
-------------- -------------
Income before income taxes 11,651 6,325
Income tax expense 4,321 2,755
-------------- -------------
Net income $ 7,330 $ 3,570
============== =============
Net Income per common share:
Basic $ 0.41 $ 0.30
============== =============
Diluted $ 0.39 $ 0.30
============== =============
Weighted average number of
common shares:
Basic 17,771,396 11,931,086
============== =============
Diluted 18,779,761 11,982,100
============== =============
CONTACT: American Public Education, Inc.
Harry T. Wilkins, CPA, 304-724-3722
Executive Vice President and Chief Financial Officer
or
Christopher L. Symanoskie, 703-334-3880
Director, Investor Relations
SOURCE: American Public Education, Inc.