Net Course Registrations from New Students Increased Approximately 41%
in Third Quarter 2009 Compared to the Prior Year Period
CHARLES TOWN, W.V.--(BUSINESS WIRE)--Nov. 5, 2009--
American Public Education, Inc. (NASDAQ: APEI) – parent company of
online learning provider American Public University System (APUS), which
operates through American Military University and American Public
University – announced strong financial results for the quarter ended
September 30, 2009.
Recent Highlights:
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Net course registrations from new students in the third quarter of
2009 increased to approximately 14,700, an increase of approximately
41% over the same period of 2008.
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Net course registrations increased to approximately 55,300 in the
third quarter of 2009, a year-over-year increase of 42%.
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As of September 30, 2009, a total of approximately 59,300 students
were enrolled in American Public University System, a year-over-year
increase of 44%.
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American Public Education reported third quarter 2009 revenues
increased 33% to $36.5 million, compared to $27.4 million in the third
quarter of 2008.
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Income from operations before interest income and income tax in the
third quarter of 2009 increased 35% to $8.4 million, compared to $6.2
million in the same period of 2008. Operating margin in the third
quarter of 2009 increased to 23.0%, compared to 22.6% in the third
quarter of 2008.
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Net income for the third quarter of 2009 increased 31% to $5.0 million
or $0.27 per diluted share, compared to $3.8 million or $0.20 per
diluted share in the same period of 2008.
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American Public University System received approval for and launched a
Master’s degree in Legal Studies and a Bachelor’s degree in General
Studies. These two new programs bring the total number of degrees
offered to 76 degrees, with a new degree pending approval by its
regional accrediting body and other degrees under development.
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American Public University System was recently recognized by The Sloan
Consortium (Sloan-C), a renowned non-profit group of higher education
institutions, with The Ralph E. Gomory Award for Quality Online
Education. The annual award honors the institution that best
demonstrates its commitment to excellence in online learning.
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The International Association of Emergency Managers (IAEM), a
non-profit educational organization dedicated to saving lives and
protecting property during emergencies and disasters, honored the
Emergency and Disaster Management Program at APUS with the 2009
Academic Recognition Award. The annual award goes to the
institution that made significant contributions to the formal
education of students pursuing a career in emergency management.
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American Public University System announced a graduate tuition
increase to $300 per credit hour ($900 per three credit course) for
courses beginning in April 2010 or later.
Financial and Other Results:
Total revenues for the third quarter of 2009 increased 33% to $36.5
million, compared to total revenues of $27.4 million in the third
quarter of 2008. Income from operations before interest income and
income tax in the third quarter of 2009 increased 35% to $8.4 million,
compared to $6.2 million in the same period of 2008. Operating margin in
the third quarter of 2009 increased to 23.0%, compared to 22.6% in the
third quarter of 2008. Stock-based compensation expense reduced
operating income by $562,000 in the third quarter of 2009 and $396,000
in the third quarter of 2008.
Net income for the third quarter of 2009 increased 31% to $5.0 million
or $0.27 per diluted share, which includes $359,000 or $0.02 per diluted
share in stock-based compensation expense net of tax. This compares to
net income of $3.8 million or $0.20 per diluted share for the third
quarter of 2008, including $261,000 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 2009 and 2008 was
approximately 18.9 million in each period.
For the nine months ended September 30, 2009, total revenues were $105.3
million, an increase of 39% compared to total revenues of $75.6 million
in the same period of 2008. Income from operations before interest
income and income tax for the nine months ended September 30, 2009
increased 49% to $25.9 million, compared to $17.4 million in the same
period of 2008. Stock-based compensation expense reduced each period's
operating income by $1.6 million and $1.2 million, respectively.
Net income for the nine months ended September 30, 2009 increased 40% to
$15.6 million or $0.82 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 $11.1 million or $0.59 per diluted share
in the same period of 2008, including $817,000 or $0.04 per diluted
share in stock-based compensation expense net of tax. The weighted
average diluted shares outstanding for the nine months ended September
30, 2009 and 2008 were approximately 18.9 million and 18.8 million,
respectively.
Total cash and cash equivalents as of September 30, 2009 were $63.8
million with no long-term debt. Cash from operations for the nine months
ended September 30, 2009 was $22.8 million, compared to $19.8 million in
the same period of 2008. Capital expenditures were $8.6 million for the
nine months ended September 30, 2009, which compares to $6.9 million in
capital expenditures in the same period of 2008. Depreciation and
amortization was $3.9 million for the nine months ended September 30,
2009 and $3.0 million for the same period of 2008.
Net Course Registrations and Student Enrollment:
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For the three months ended September 30,
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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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10,400
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14,700
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41%
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Net Course Registrations
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38,900
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55,300
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42%
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For the nine months ended September 30,
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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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26,800
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36,400
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36%
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Net Course Registrations
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105,300
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149,800
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42%
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As of September 30,
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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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41,100
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59,300
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44%
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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.
Fourth 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 13,600 and net course registrations of approximately
58,000 in the quarter ending December 31, 2009.
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The Company’s fourth quarter 2009 revenue is expected to be
approximately $42.7 million.
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The Company estimates that fourth quarter 2009 net income, including
stock-based compensation expense, will be approximately $7.9 million
or approximately $0.42 per fully 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 December 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
approximately 50,000 and total net course registrations of
approximately 207,800 in the twelve month period ending December 31,
2009.
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The Company expects full year 2009 revenues to be approximately $148.0
million.
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The Company estimates that full year 2009 net income, including
stock-based compensation expense, will be approximately $23.5 million
or approximately $1.24 per fully diluted share. The weighted average
number of diluted shares outstanding is expected to be approximately
18.9 million shares in the twelve month period ending December 31,
2009.
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). Regionally and nationally accredited,
APUS serves more than 59,300 part-time students who live and work in all
50 states and more than 100 countries; and offers 76 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 “Fourth 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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September 30,
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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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36,471
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$
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27,404
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Costs and expenses:
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Instructional costs and services
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14,745
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10,901
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Selling and promotional
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5,598
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3,600
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General and administrative
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6,465
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5,586
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Depreciation and amortization
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1,277
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1,114
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Total costs and expenses
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28,085
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21,201
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Income from operations before interest income and income taxes
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8,386
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6,203
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Interest income, net
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30
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181
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Income from operations before income taxes
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8,416
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6,384
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Income tax expense
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3,404
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2,568
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Net income
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$
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5,012
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$
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3,816
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Net Income per common share:
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Basic
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$
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0.28
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$
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0.21
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Diluted
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$
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0.27
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$
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0.20
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Weighted average number of common shares:
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Basic
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18,196
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17,846
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Diluted
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18,910
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18,851
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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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Nine Months Ended
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September 30,
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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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105,345
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$
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75,644
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Costs and expenses:
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Instructional costs and services
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41,861
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31,334
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Selling and promotional
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15,085
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8,390
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General and administrative
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18,563
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15,461
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Depreciation and amortization
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3,934
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3,043
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Total costs and expenses
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79,443
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58,228
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Income from operations before interest income and income taxes
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25,902
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17,416
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Interest income, net
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70
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619
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Income from operations before income taxes
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25,972
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18,035
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Income tax expense
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10,408
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6,889
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Net income
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$
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15,564
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$
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11,146
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Net Income per common share:
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Basic
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$
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0.86
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$
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0.63
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Diluted
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$
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0.82
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$
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0.59
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Weighted average number of common shares:
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Basic
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18,138
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17,796
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Diluted
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18,900
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18,806
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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, Corporate Communications
703-334-3880