Net Course Registrations from New Students Increase 55% in Third Quarter 2008 Compared to the Prior Year PeriodCHARLES TOWN, W.Va., Nov 12, 2008 (BUSINESS WIRE) -- 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 September 30, 2008.
Recent Highlights:
--
Net course registrations from new students in the third quarter of
2008 increased to approximately 10,400, an increase of 55% over the
same period of 2007.
--
The Company announced net course registrations of approximately 38,900
in the third quarter of 2008, a year-over-year increase of 54%.
--
As of September 30, 2008, a total of approximately 41,100 students
were enrolled in American Public University System.
--
American Public Education reported third quarter 2008 revenues
increased 56% to $27.4 million, compared to $17.6 million in the third
quarter of 2007.
--
Income from operations before interest income and income tax expense
in the third quarter of 2008 increased to $6.2 million, compared to
$3.6 million in the same period of 2007, an increase of approximately
73%.
--
Net income for the third quarter of 2008 increased approximately 72%
to $3.8 million or $0.20 per diluted share, compared to $2.2 million
or $0.18 per diluted share in the same period of 2007. The weighted
average diluted shares outstanding for the third quarter of 2008 and
2007 were approximately 18.9 million and 12.6 million, respectively.
--
American Public Education introduces fourth quarter 2008 earnings
estimate of between $0.22 and $0.23 per diluted share.
--
The Company increased its full year 2008 earnings estimate to between
$0.81 and $0.82 per diluted share.
Financial and Other Results:
Total revenues for the third quarter of 2008 increased 56% to $27.4
million, compared to total revenues of $17.6 million in the third
quarter of 2007. Income from operations before interest income and
income tax expense in the third quarter of 2008 increased to $6.2
million, compared to $3.6 million in the same period of 2007. Operating
margin in the third quarter of 2008 increased to 22.6%, compared to
20.3% in the third quarter of 2007. Stock-based compensation expense
reduced operating income by $396,000 and $136,000 in the third quarter
of 2008 and 2007, respectively. Additionally, selling and promotional
expense was approximately 13% of revenue in the third quarter of 2008.
Net income for the third quarter of 2008 increased approximately 72% to
$3.8 million or $0.20 per diluted share, which includes $261,000 or
$0.01 per diluted share in stock-based compensation expense net of tax.
This compares to net income of $2.2 million or $0.18 per diluted share
for the third quarter of 2007, including $113,000 or $0.01 per diluted
share in stock-based compensation expense net of tax. The weighted
average diluted shares outstanding for the third quarter of 2008 and
2007 were approximately 18.9 million and 12.6 million, respectively.
For the nine months ended September 30, 2008 total revenues were $75.6
million, an increase of 58% compared to total revenues of $47.9 million
in the same period of 2007. Income from operations before interest
income and income tax for the nine months ended September 30, 2008
increased to $17.4 million, compared to $9.6 million in the same period
of 2007. Stock-based compensation expense reduced each period's
operating income by $1.2 million and $754,000, respectively.
Net income for the nine months ended September 30, 2008 increased
approximately 92% to $11.1 million or $0.59 per diluted share, which
includes $817,000 or $0.04 per diluted share in stock-based compensation
expense net of tax. This compares to net income of $5.8 million or $0.46
per diluted share in the same period of 2007, including $606,000 or
$0.05 per diluted share in stock-based compensation expense net of tax.
The weighted average diluted shares outstanding for the nine months
ended September 30, 2008 and 2007 were approximately 18.8 million and
12.5 million, respectively.
Total cash and cash equivalents at September 30, 2008 were $41.4 million
with no long-term debt. Cash from operations for the nine months ended
September 30, 2008 was $19.8 million, compared to $14.5 million in the
same period of 2007. Capital expenditures were $6.9 million for the nine
months ended September 30, 2008, which compares to $3.7 million in
capital expenditures in the same period of 2007. Depreciation and
amortization was $3.0 million for the nine months ended September 30,
2008 and $2.0 million for the same period of 2007.
Net Course Registrations and Student Enrollment:
For the three months ended September 30,
2007 2008 % Change
Net Course Registrations from New Students 6,700 10,400 55 %
Net Course Registrations 25,300 38,900 54 %
For the nine months ended September 30,
2007 2008 % Change
Net Course Registrations from New Students 17,800 26,800 51 %
Net Course Registrations 67,000 105,300 57 %
As of September 30,
2007 2008 % Change
Total Student Enrollment 26,900 41,100 53 %
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.
Fourth 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
between 9,500 and 9,800 and net course registrations of between 40,400
and 40,900 in the quarter ending December 31, 2008.
--
The Company's fourth quarter 2008 revenue is
expected to be between $29.5 million and $30.9 million.
--
The Company estimates that fourth quarter 2008 net income, including
stock-based compensation expense, will be between $4.0 million and
$4.3 million or between $0.22 and $0.23 per diluted share.
Additionally, selling and promotional expense is expected to be
approximately 14% of revenue in the fourth quarter of 2008.
--
The weighted average number of diluted shares outstanding is expected
to be approximately 19.0 million shares in the three month period
ending December 31, 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 36,300 or more and total net course registrations of
145,700 or more in the twelve month period ending December 31, 2008.
--
The Company expects full year 2008 revenues to be between $105.2
million and $106.6 million.
--
The Company estimates that full year 2008 net income, including
stock-based compensation expense, will be approximately $15.2 million
to $15.4 million or between $0.81 and $0.82 per diluted share. The
estimated net income represents a 73% increase or more over the
reported net income of $8.8 million in the year ended December 31,
2007.
--
The weighted average number of diluted shares outstanding is expected
to be approximately 18.8 million shares in the twelve month period
ending December 31, 2008.
Webcast:
A live webcast of the Company's third 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). As a regionally accredited institution
of higher learning, APUS serves more than 41,000 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 regardingAmerican Public
Education, or its subsidiaries,that are not historical facts are
forward-looking statements based on current expectations, assumptions,
estimates and projections aboutAmerican Public Educationand 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 "Fourth
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
September 30,
2008 2007
(Unaudited)
Revenues $ 27,404 $ 17,612
Costs and expenses:
Instructional costs and services 10,901 7,708
Selling and promotional 3,600 1,946
General and administrative 5,586 3,695
Depreciation and amortization 1,114 685
Total costs and expenses 21,201 14,034
Income from operations before interest income and income taxes 6,203 3,578
Interest income, net 181 257
Income before income taxes 6,384 3,835
Income tax expense 2,568 1,613
Net income $ 3,816 $ 2,222
Net Income per common share:
Basic $ 0.21 $ 0.18
Diluted $ 0.20 $ 0.18
Weighted average number of common shares:
Basic 17,845,581 12,107,018
Diluted 18,850,558 12,640,799
AMERICAN PUBLIC EDUCATION, INC.
Consolidated Statements of Income
(In thousands, except share and per share data)
Nine Months Ended
September 30,
2008 2007
(Unaudited)
Revenues $ 75,644 $ 47,873
Costs and expenses:
Instructional costs and services 31,334 20,697
Selling and promotional 8,390 4,834
General and administrative 15,461 10,769
Depreciation and amortization 3,043 2,007
Total costs and expenses 58,228 38,307
Income from operations before interest income and income taxes 17,416 9,566
Interest income, net 619 595
Income before income taxes 18,035 10,161
Income tax expense 6,889 4,368
Net income $ 11,146 $ 5,793
Net Income per common share:
Basic $ 0.63 $ 0.48
Diluted $ 0.59 $ 0.46
Weighted average number of common shares:
Basic 17,796,305 11,990,375
Diluted 18,805,922 12,530,269
SOURCE: American Public Education, Inc.
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