Net Income Increases 53% in First Quarter 2009 Compared to the Prior Year Period
CHARLES TOWN, W. Va.--(BUSINESS WIRE)--May. 7, 2009--
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, 2009.
Recent Highlights:
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The Company announced net course registrations of approximately 46,650
in the first quarter of 2009, a year-over-year increase of 41%.
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Net course registrations from new students in the first quarter of
2009 increased to approximately 10,500, an increase of 40% over the
same period of 2008.
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As of March 31, 2009, a total of approximately 49,600 students were
enrolled in American Public University System.
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American Public Education reported first quarter 2009 revenues
increased 43% to $33.2 million, compared to $23.2 million in the first
quarter of 2008.
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Income from operations before interest income and income tax in the
first quarter of 2009 increased 58% to $8.7 million, compared to $5.5
million in the same period of 2008. Operating margin in the first
quarter of 2009 increased to 26.3%, compared to 23.5% in the first
quarter of 2008.
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Net income for the first quarter of 2009 increased 53% to $5.2 million
or $0.28 per diluted share, compared to $3.4 million or $0.18 per
diluted share in the same period of 2008. The weighted average diluted
shares outstanding for the first quarter of 2009 and 2008 were
approximately 18.9 million and 18.8 million, respectively.
Wallace E. Boston, Jr., Chief Executive Officer of American Public
Education, Inc., stated, “We believe our success is directly
attributable to an unyielding commitment to our students before, during
and after their enrollment at American Public University System. What
that means in practical terms is affordable tuition, a
highly-interactive instructional model, and a customer-oriented student
experience.
“As an important part of our dedication to quality, we regularly test
and assess student outcomes, evaluate student satisfaction, and rely on
this information to continually improve our programs and enhance the
value of our degrees,” added Mr. Boston. “We believe our strategy
translates into a valuable experience for our students and graduates, a
strong financial performance for our shareholders, and a business that
addresses America’s need for a well-educated population through a high
commitment to affordability, access and proven results.” The American
Public University System is a member of the Higher Learning Commission's
Assessment Academy and is also a member of the Transparency by Design
initiative.
American Public University System uses a variety of assessment
activities designed to improve academic programs as well as to document
and enhance student learning. American Public University System
publishes the details of its continuous assessment activities at http://www.apus.edu/Learning-Outcomes-Assessment/.
Financial and Other Results:
Total revenues for the first quarter of 2009 increased 43% to $33.2
million, compared to total revenues of $23.2 million in the first
quarter of 2008. Income from operations before interest income and
income tax in the first quarter of 2009 increased 58% to $8.7 million,
compared to $5.5 million in the same period of 2008. Operating margin in
the first quarter of 2009 increased to 26.3%, compared to 23.5% in the
first quarter of 2008. Stock-based compensation expense reduced
operating income by $535,000 in the first quarter of 2009 and $377,000
in the first quarter of 2008.
Net income for the first quarter of 2009 increased 53% to $5.2 million
or $0.28 per diluted share, which includes $346,000 or $0.02 per diluted
share in stock-based compensation expense net of tax. This compares to
net income of $3.4 million or $0.18 per diluted share for the first
quarter of 2008, including $249,000 or $0.01 per diluted share in
stock-based compensation expense net of tax. The weighted average
diluted shares outstanding for the first quarter of 2009 and 2008 were
approximately 18.9 million and 18.8 million, respectively.
Total cash and cash equivalents at March 31, 2009 were $53.0 million
with no long-term debt. Cash from operations for the three months ended
March 31, 2009 was $6.3 million, compared to $7.0 million in the same
period of 2008. Capital expenditures were $1.8 million for the three
months ended March 31, 2009, which compares to $2.2 million in capital
expenditures in the same period of 2008. Depreciation and amortization
was $1.3 million for the three months ended March 31, 2009 and $0.9
million for the same period of 2008.
Net Course Registrations and Student Enrollment:
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For the three months ended March 31,
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2008
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2009
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% Change
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Net Course Registrations from New Students
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7,500
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10,500
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40%
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Net Course Registrations
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33,100
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46,650
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41%
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As of March 31,
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2008
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2009
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% Change
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Total Student Enrollment
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33,000
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49,600
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50%
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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 2009 Outlook:
The following statements are based on current expectations. These
statements are forward-looking and actual results may differ materially.
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The Company expects net course registrations from new students of
approximately 11,350 and net course registrations of approximately
46,600 in the quarter ending June 30, 2009.
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The Company’s second quarter 2009 revenue is expected to be between
$33.8 million and $35.0 million.
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The Company estimates that second quarter 2009 net income, including
stock-based compensation expense, will be between $4.8 million and
$5.2 million or between $0.25 and $0.27 per diluted share. The
weighted average number of diluted shares outstanding is expected to
be approximately 19.0 million shares in the three month period ending
June 30, 2009.
Full Year 2009 Outlook:
The following statements are based on current expectations. These
statements are forward-looking and actual results may differ materially.
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The Company anticipates net course registrations from new students of
50,200 or more and total net course registrations of 202,500 or more
in the twelve month period ending December 31, 2009.
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The Company expects full year 2009 revenues to be between $147 million
and $151 million.
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The Company estimates that full year 2009 net income, including
stock-based compensation expense, will be between $22.9 million and
$23.9 million or between $1.19 and $1.26 per diluted share. The
weighted average number of diluted shares outstanding is expected to
be between 19.0 and 19.2 million shares in the twelve month period
ending December 31, 2009.
Webcast:
A live webcast of the Company’s first 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 49,500 part-time students who live and work in all
50 states and more than 100 countries; and offers 74 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 2009 Outlook" and “Second Quarter 2009
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.
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Consolidated Statement of Income
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(In thousands, except per share data)
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Three Months Ended
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March 31,
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2009
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2008
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(Unaudited)
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Revenues
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$
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33,161
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$
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23,241
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Costs and expenses:
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Instructional costs and services
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12,743
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9,912
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Selling and promotional
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4,331
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2,177
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General and administrative
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6,056
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4,803
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Depreciation and amortization
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1,297
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898
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Total costs and expenses
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24,427
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17,790
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Income from operations before interest income and income taxes
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8,734
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5,451
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Interest income, net
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11
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242
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Income from operations before income taxes
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8,745
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5,693
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Income tax expense
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3,507
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2,288
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Net income
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$
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5,238
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$
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3,405
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Net Income per common share:
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Basic
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$
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0.29
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$
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0.19
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Diluted
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$
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0.28
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$
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0.18
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Weighted average number of common shares:
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Basic
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18,055
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17,736
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Diluted
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18,889
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18,768
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Source: American Public Education, Inc.
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