Full Year 2009 Revenues Increased 39%; Net Income Increased 48% to $23.9 Million or Approximately $1.27 per Diluted Share Compared to the Prior YearCHARLES TOWN, W. Va., Feb 22, 2010 (BUSINESS WIRE) -- 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 financial results for the quarter and year ended
December 31, 2009.
Recent Highlights:
-
Net course registrations from new students in the fourth quarter of
2009 increased to approximately 13,700, an increase of approximately
38% over the same period of 2008.
-
Net course registrations increased to approximately 58,000 in the
fourth quarter of 2009, a year-over-year increase of 39%.
-
As of December 31, 2009, a total of approximately 63,800 students were
enrolled in American Public University System, a year-over-year
increase of 41%.
-
Fourth quarter 2009 revenues increased 39% to $43.7 million, compared
to $31.5 million in the fourth quarter of 2008.
-
Income from operations before interest income and income tax in the
fourth quarter of 2009 increased 69% to $14.0 million, compared to
$8.3 million in the same period of 2008. Operating margin in the
fourth quarter of 2009 increased to 32.0%, compared to 26.3% in the
fourth quarter of 2008.
-
Net income for the fourth quarter of 2009 increased 66% to $8.4
million or $0.44 per diluted share, compared to $5.0 million or $0.27
per diluted share in the same period of 2008.
-
In February 2010, American Public University System received approval
from The Higher Learning Commission to offer two new master's degrees,
a new bachelor's degree, and 10 new certificate programs.
Financial and Other Results:
Total revenues for the fourth quarter of 2009 increased 39% to $43.7
million, compared to total revenues of $31.5 million in the fourth
quarter of 2008. Income from operations before interest income and
income tax in the fourth quarter of 2009 increased 69% to $14.0 million,
compared to $8.3 million in the same period of 2008. Operating margin in
the fourth quarter of 2009 increased to 32.0%, compared to 26.3% in the
fourth quarter of 2008. Stock-based compensation expense reduced
operating income by $574,000 in the fourth quarter of 2009 and $432,000
in the fourth quarter of 2008.
Net income for the fourth quarter of 2009 increased 66% to $8.4 million
or $0.44 per diluted share, which includes $366,000 or $0.02 per diluted
share in stock-based compensation expense net of tax. This compares to
net income of $5.0 million or $0.27 per diluted share for the fourth
quarter of 2008, including $282,000 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 2009 and 2008 was
approximately 18.9 million in each period.
For the twelve months ended December 31, 2009, total revenues were
$149.0 million, an increase of 39% compared to total revenues of $107.1
million in the same period of 2008. Income from operations before
interest income and income tax for the twelve months ended December 31,
2009 increased 55% to $39.9 million, compared to $25.7 million in the
same period of 2008. Operating margin increased to 26.8% in the year
2009, compared to 24.0% in the same period of 2008. Stock-based
compensation expense reduced each period's operating income by $2.2
million and $1.7 million, respectively.
Net income for the twelve months ended December 31, 2009 increased 48%
to $23.9 million or $1.27 per diluted share, which includes $1.4 million
or $0.08 per diluted share in stock-based compensation expense net of
tax. This compares to net income of $16.2 million or $0.86 per diluted
share in the same period of 2008, including 1.1 million 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, 2009 and 2008 were approximately 18.9 million and 18.8
million, respectively.
Total cash and cash equivalents as of December 31, 2009 were $74.9
million with no long-term debt. Cash from operations for the twelve
months ended December 31, 2009 was $36.8 million, compared to $29.8
million in the same period of 2008. Capital expenditures were $10.8
million for the twelve months ended December 31, 2009, which compares to
$10.0 million in capital expenditures in the same period of 2008.
Depreciation and amortization was $5.2 million for the twelve months
ended December 31, 2009 and $4.2 million for the same period of 2008.
Net Course Registrations and Student Enrollment:
|
For the three months ended December 31,
|
|
|
|
|
|
|
|
|
2008
|
|
2009
|
|
% Change
|
|
Net Course Registrations from New Students
|
|
9,950
|
|
13,700
|
|
38%
|
|
Net Course Registrations
|
|
41,850
|
|
58,000
|
|
39%
|
|
|
|
|
|
|
|
|
For the twelve months ended December 31,
|
|
|
|
|
|
|
|
|
2008
|
|
2009
|
|
% Change
|
|
Net Course Registrations from New Students
|
|
36,750
|
|
50,100
|
|
36%
|
|
Net Course Registrations
|
|
147,120
|
|
207,800
|
|
41%
|
|
|
|
|
|
|
|
|
As of December 31,
|
|
|
|
|
|
|
|
|
2008
|
|
2009
|
|
% Change
|
|
Total Student Enrollment
|
|
45,200
|
|
63,800
|
|
41%
|
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 cost. 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.
Full Year 2010 and 2011 Outlook:
The following statements are based on current expectations. These
statements are forward-looking and actual results may differ materially.
For fiscal year 2010, American Public Education currently estimates the
following:
-
Net course registrations to increase between 35% and 38% year-over-year
-
Revenues to increase between 36% and 39% year-over-year
-
Net income to increase between 36% and 37% year-over-year
For fiscal year 2011, the Company currently anticipates net course
registrations will increase approximately 32% to 35% year-over-year
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 63,800 part-time students who live and work in all
50 states and in 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
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, 2009 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 Statement of Income |
| (In thousands, except per share data) |
|
|
|
|
|
Three Months Ended |
|
|
December 31, |
|
|
2009 |
|
|
2008 |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
43,653
|
|
|
$
|
31,503
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
Instructional costs and services
|
|
|
16,522
|
|
|
|
12,227
|
|
Selling and promotional
|
|
|
5,394
|
|
|
|
3,971
|
|
General and administrative
|
|
|
6,476
|
|
|
|
5,841
|
|
Depreciation and amortization
|
|
|
1,297
|
|
|
|
1,192
|
|
|
|
|
|
|
|
|
|
Total costs and expenses
|
|
|
29,689
|
|
|
|
23,231
|
|
|
|
|
|
|
|
|
|
Income from operations before
|
|
|
|
|
|
|
|
|
interest income and income taxes
|
|
|
13,964
|
|
|
|
8,272
|
|
Interest income, net
|
|
|
24
|
|
|
|
87
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
|
|
|
|
|
|
before income taxes
|
|
|
13,988
|
|
|
|
8,359
|
|
Income tax expense
|
|
|
5,609
|
|
|
|
3,318
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
8,379
|
|
|
$
|
5,041
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income per common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.46
|
|
|
$
|
0.28
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
0.44
|
|
|
$
|
0.27
|
|
|
|
|
|
|
|
|
|
Weighted average number of common
|
|
|
|
|
|
|
|
|
shares:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
18,250
|
|
|
|
17,969
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
18,931
|
|
|
|
18,861
|
| American Public Education, Inc. |
| Consolidated Statement of Income |
| (In thousands, except per share data) |
|
|
|
Twelve Months Ended |
|
|
December 31, |
|
|
2009 |
|
|
2008 |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
148,998
|
|
|
$
|
107,147
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
Instructional costs and services
|
|
|
58,383
|
|
|
|
43,561
|
|
Selling and promotional
|
|
|
20,479
|
|
|
|
12,361
|
|
General and administrative
|
|
|
25,039
|
|
|
|
21,302
|
|
Depreciation and amortization
|
|
|
5,231
|
|
|
|
4,235
|
|
|
|
|
|
|
|
|
|
Total costs and expenses
|
|
|
109,132
|
|
|
|
81,459
|
|
|
|
|
|
|
|
|
|
Income from operations before
|
|
|
|
|
|
|
|
|
interest income and income taxes
|
|
|
39,866
|
|
|
|
25,688
|
|
Interest income, net
|
|
|
94
|
|
|
|
706
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
|
|
|
|
|
|
before income taxes
|
|
|
39,960
|
|
|
|
26,394
|
|
Income tax expense
|
|
|
16,017
|
|
|
|
10,207
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
23,943
|
|
|
$
|
16,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income per common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.32
|
|
|
$
|
0.91
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
1.27
|
|
|
$
|
0.86
|
|
|
|
|
|
|
|
|
|
Weighted average number of common
|
|
|
|
|
|
|
|
|
shares:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
18,167
|
|
|
|
17,840
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
18,906
|
|
|
|
18,822
|
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
Associate Vice President, Corporate Communications