Revenues Increase 49% in Fourth Quarter 2008 Compared to the Prior Year Period
CHARLES TOWN, W.V.--(BUSINESS WIRE)--Mar. 10, 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 and year
ended December 31, 2008.
Recent Highlights:
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The Company announced net course registrations of approximately 41,850
in the fourth quarter of 2008, a year-over-year increase of 50%.
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Net course registrations from new students in the fourth quarter of
2008 increased to approximately 9,950, an increase of 44% over the
same period of 2007.
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As of December 31, 2008, a total of approximately 45,200 students were
enrolled in American Public University System.
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American Public Education reported fourth quarter 2008 revenues
increased 49% to $31.5 million, compared to $21.2 million in the
fourth quarter of 2007.
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Income from operations before interest income and income tax in the
fourth quarter of 2008 increased to $8.3 million, compared to $5.1
million in the same period of 2007. Operating margin in the fourth
quarter of 2008 increased to 26.3%, compared to 24.2% in the fourth
quarter of 2007.
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Net income for the fourth quarter of 2008 increased to $5.0 million or
$0.27 per diluted share, compared to $3.0 million or $0.19 per diluted
share in the same period of 2007. The weighted average diluted shares
outstanding for the fourth quarter of 2008 and 2007 were approximately
18.9 million and 15.9 million, respectively.
Wallace E. Boston, Jr., Chief Executive Officer of American Public
Education, Inc., stated, “We are pleased with our continued strong
financial results, especially in light of today’s global financial
challenges. Much of our success can be attributed to our providing
affordable, high-quality degree programs to the military and public
service communities.”
“Moreover, the high value of our degree programs, together with our open
access and convenient semester starts, make the goal of becoming a
college graduate more attainable for a broader population of students
interested in everything from business, to information technology, to
liberal arts. As a result, we are very excited about our prospects for
continued growth in enrollments and quality programs offered. We believe
we have the right business model, the right education model and the
right strategy to meet the personal and professional needs of our
students, and to achieve our stated long-term growth goals.”
Financial and Other Results:
Total revenues for the fourth quarter of 2008 increased 49% to $31.5
million, compared to total revenues of $21.2 million in the fourth
quarter of 2007. Income from operations before interest income and
income tax in the fourth quarter of 2008 increased to $8.3 million,
compared to $5.1 million in the same period of 2007. Operating margin in
the fourth quarter of 2008 increased to 26.3%, compared to 24.2% in the
fourth quarter of 2007. Stock-based compensation expense reduced
operating income by $432,000 in the fourth quarter of 2008 and $279,000
in the fourth quarter of 2007.
Net income for the fourth quarter of 2008 increased to $5.0 million or
$0.27 per diluted share, which includes $282,000 or $0.01 per diluted
share in stock-based compensation expense net of tax. This compares to
net income of $3.0 million or $0.19 per diluted share for the fourth
quarter of 2007, including $229,000 or $0.01 per diluted share in
stock-based compensation expense net of tax. The weighted average
diluted shares outstanding for the fourth quarter of 2008 and 2007 were
approximately 18.9 million and 15.9 million, respectively.
For the twelve months ended December 31, 2008, total revenues were
$107.1 million, an increase of 55% compared to total revenues of $69.1
million in the same period of 2007. Income from operations before
interest income and income tax for the twelve months ended December 31,
2008 increased to $25.7 million, compared to $14.7 million in the same
period of 2007. Operating margin increased to 24.0% in the year 2008,
compared to 21.3% in the same period of 2007. Stock-based compensation
expense reduced each period's operating income by $1.7 million and $1.0,
respectively.
Net income for the twelve months ended December 31, 2008 increased to
$16.2 million or $0.86 per diluted share, which includes $1.1 million or
$0.06 per diluted share in stock-based compensation expense net of tax.
This compares to net income of $8.8 million or $0.64 per diluted share
for the full year 2007, including $835,000 or $0.06 per diluted share in
stock-based compensation expense net of tax. The weighted average
diluted shares outstanding for the twelve months ended December 31, 2008
and 2007 were approximately 18.8 million and 13.6 million, respectively.
Total cash and cash equivalents at December 31, 2008 were $47.7 million
with no long-term debt. Cash from operations for the twelve months ended
December 31, 2008 was $29.8 million, compared to $17.5 million in the
same period of 2007. Capital expenditures were $10.0 million for the
twelve months ended December 31, 2008, which compares to $6.8 million in
capital expenditures in the same period of 2007. Depreciation and
amortization was $4.2 million for the twelve months ended December 31,
2008 and $2.8 million for the same period of 2007.
Net Course Registrations and Student Enrollment:
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For the three months ended December 31,
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2007
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2008
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% Change
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Net Course Registrations from New Students
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6,890
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9,950
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44%
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Net Course Registrations
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27,830
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41,850
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50%
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For the twelve months ended December 31,
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2007
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2008
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% Change
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Net Course Registrations from New Students
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24,700
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36,750
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49%
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Net Course Registrations
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94,850
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147,120
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55%
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As of December 31,
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2007
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2008
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% Change
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Total Student Enrollment
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30,130
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45,200
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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.
First Quarter 2009 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 10,500 and net course registrations of approximately
46,300 in the quarter ending March 31, 2009.
-
The Company’s first quarter 2009 revenue is expected to be between
$31.8 million and $32.5 million.
-
The Company estimates that first quarter 2009 net income, including
stock-based compensation expense, will be between $4.6 million and
$4.8 million or between $0.24 and $0.26 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
March 31, 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
50,700 or more and total net course registrations of 202,500 or more
in the twelve month period ending December 31, 2009.
-
The Company expects full year 2009 revenues to be between $146 million
and $150 million.
-
The Company estimates that full year 2009 net income, including
stock-based compensation expense, will be between $22.2 million and
$22.8 million or between $1.16 and $1.20 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 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 45,200 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 “First 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 Statements of Income
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(In thousands, except per share data)
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Year Ended
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December 31,
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2007
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2008
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Revenues
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$
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69,095
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$
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107,147
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Costs and expenses:
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|
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Instructional costs and services
|
|
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29,479
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|
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43,561
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Selling and promotional
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6,765
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|
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12,361
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General and administrative
|
|
|
15,335
|
|
|
|
21,302
|
Depreciation and amortization
|
|
|
2,825
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|
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4,235
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|
|
|
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Total costs and expenses
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54,404
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81,459
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Income from operations before interest income and income taxes
|
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14,691
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25,688
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Interest income, net
|
|
|
888
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|
|
706
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Income from operations before income taxes
|
|
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15,579
|
|
|
|
26,394
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Income tax expense
|
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|
6,829
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|
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10,207
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Net income
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$
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8,750
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$
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16,187
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Net income per common share:
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Basic
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$
|
0.69
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$
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0.91
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Diluted
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$
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0.64
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$
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0.86
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Weighted average number of shares outstanding:
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|
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Basic
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12,759
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|
|
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17,840
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Diluted
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13,601
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18,822
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AMERICAN PUBLIC EDUCATION, INC.
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Consolidated Statements of Income
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(In thousands, except per share data)
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Three Months Ended
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December 31,
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2007
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2008
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Revenues
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$
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21,221
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$
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31,503
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Costs and expenses:
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|
|
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Instructional costs and services
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8,780
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|
|
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12,227
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Selling and promotional
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1,931
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3,971
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General and administrative
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|
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4,567
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5,841
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Depreciation and amortization
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|
|
817
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1,192
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Total costs and expenses
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16,095
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23,231
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Income from operations before interest income and income taxes
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|
|
5,126
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|
|
|
8,272
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|
Interest income, net
|
|
|
293
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|
|
|
87
|
|
|
|
|
|
|
|
|
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Income from operations before income taxes
|
|
|
5,419
|
|
|
|
8,359
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|
Income tax expense
|
|
|
2,461
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|
|
|
3,318
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|
|
|
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|
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Net income
|
|
$
|
2,958
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|
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$
|
5,041
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Net income per common share:
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|
|
|
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Basic
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$
|
0.20
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$
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0.28
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Diluted
|
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$
|
0.19
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$
|
0.27
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Weighted average number of shares outstanding:
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|
|
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|
|
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Basic
|
|
|
15,039
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|
|
|
17,969
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|
Diluted
|
|
|
15,937
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|
|
|
18,861
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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