Full Year 2010 Net Income Increased 25% to $29.9 Million or
Approximately $1.59 per Diluted Share Compared to the Prior Year
CHARLES TOWN, W.Va., Feb 17, 2011 (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 (AMU) and American
Public University (APU) - announced financial results for the
quarter and year ended December 31, 2010.
Recent Highlights:
-
Net course registrations from new students in the fourth quarter of
2010 increased to approximately 16,500, an increase of approximately
20% over the same period of 2009.
-
Net course registrations increased to approximately 73,900 in the
fourth quarter of 2010, a year-over-year increase of 27%.
-
As of December 31, 2010, a total of approximately 83,700 students were
enrolled in American Public University System, a year-over-year
increase of 31%.
-
American Public Education reported fourth quarter 2010 revenues
increased 29% to $56.3 million, compared to $43.7 million in the
fourth quarter of 2009.
-
Income from operations before interest income and income tax in the
fourth quarter of 2010 increased 13% to $15.8 million, compared to
$14.0 million in the same period of 2009.
-
Net income for the fourth quarter of 2010 increased 14% to $9.6
million or $0.52 per diluted share, compared to $8.4 million or $0.44
per diluted share in the same period of 2009.
-
American Public Education anticipates first quarter 2011 net course
registrations from new students to increase approximately 27%; net
course registrations to increase approximately 25%; revenues to
increase approximately 20% over the prior year period; and net income
to be between $0.43 and $0.45 per diluted share.
Financial and Other Results:
Total revenues for the fourth quarter of 2010 increased 29% to $56.3
million, compared to total revenues of $43.7 million in the fourth
quarter of 2009. Income from operations before interest income and
income tax in the fourth quarter of 2010 increased 13% to $15.8 million,
compared to $14.0 million in the same period of 2009. Stock-based
compensation expense reduced operating income by $624,000 in the fourth
quarter of 2010 and $574,000 in the fourth quarter of 2009.
Net income for the fourth quarter of 2010 increased 14% to $9.6 million
or $0.52 per diluted share, which includes $386,000 or $0.02 per diluted
share in stock-based compensation expense net of tax. This compares to
net income of $8.4 million or $0.44 per diluted share for the fourth
quarter of 2009, including $366,000 or $0.02 per diluted share in
stock-based compensation expense net of tax. The weighted average
diluted shares outstanding for the fourth quarter of 2010 and 2009 were
approximately 18.4 million and 18.9 million, respectively.
For the twelve months ended December 31, 2010, total revenues were
$198.2 million, an increase of 33% compared to total revenues of $149.0
million in the same period of 2009. Income from operations before
interest income and income tax for the twelve months ended December 31,
2010 increased 25% to $50.0 million, compared to $39.9 million in the
same period of 2009. Stock-based compensation expense reduced each
period's operating income by $2.8 million and $2.2 million, respectively.
Income from operations before interest income and income tax in the
twelve months ended December 31, 2010 includes $492,000 of additional
legal fees and related expenses in connection with preparing responses
to the request for information from the U.S. Senate Committee on Health,
Education, Labor and Pensions relating to the Committee's hearings on
for-profit colleges. During the third and fourth quarter of 2010, the
Company repurchased approximately 682,000 shares under the Company's
previously announced and completed repurchase program for an aggregate
amount of $20 million.
Net income for the twelve months ended December 31, 2010 increased 25%
to $29.9 million or $1.59 per diluted share, which includes $1.7 million
or $0.09 per diluted share in stock-based compensation expense net of
tax. This compares to net income of $23.9 million or $1.27 per diluted
share in the same period of 2009, including $1.4 million or $0.07 per
diluted share in stock-based compensation expense net of tax. The
weighted average diluted shares outstanding for the twelve months ended
December 31, 2010 and 2009 were approximately 18.8 million and 18.9
million, respectively.
Total cash and cash equivalents as of December 31, 2010 were $81.4
million with no long-term debt. Cash from operations for the twelve
months ended December 31, 2010 was $47.1 million, compared to $36.8
million in the same period of 2009. Capital expenditures were $22.5
million for the twelve months ended December 31, 2010, which compares to
$10.8 million in capital expenditures in the same period of 2009.
Depreciation and amortization was $6.5 million for the twelve months
ended December 31, 2010 and $5.2 million for the same period of 2009.
Share Repurchase Program
American Public Education announced that its Board of Directors has
authorized a common stock share repurchase program that is designed to
provide an opportunity to potentially offset some of the dilution that
results from the issuance of additional shares under the Company's
equity incentive and employee stock purchase plans. Under this program,
the Company has authorization to repurchase up to the cumulative number
of shares issued or deemed issued under the Company's equity incentive
and employee stock purchase plans beginning with shares issued in 2011.
Subject to market conditions, applicable legal requirements and other
factors, the repurchases may be made in open market transactions,
including pursuant to a trading plan adopted in accordance with Rule
10b5-1 of the Securities Exchange Act of 1934. There is no guarantee
that any share repurchases will be made, and the Board of Directors may
modify, suspend, extend or terminate the program at any time.
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|
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Net Course Registrations and Student Enrollment:
|
|
For the three months ended December 31,
|
|
|
2009
|
|
2010
|
|
% Change
|
|
|
Net Course Registrations from New Students
|
|
13,700
|
|
16,500
|
|
20
|
%
|
|
Net Course Registrations
|
|
58,000
|
|
73,900
|
|
27
|
%
|
|
|
For the twelve months ended December 31,
|
|
|
2009
|
|
2010
|
|
% Change
|
|
|
Net Course Registrations from New Students
|
|
50,100
|
|
59,700
|
|
19
|
%
|
|
Net Course Registrations
|
|
207,800
|
|
272,200
|
|
31
|
%
|
|
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.
|
|
First Quarter 2011 Outlook:
The following statements are based on current expectations. These
statements are forward-looking and actual results may differ materially.
The Company undertakes no obligation to update publicly any
forward-looking statements for any reason.
American Public Education anticipates first quarter 2011 net course
registrations from new students to increase approximately 27%1;
net course registrations to increase approximately 25%1;
revenues to increase approximately 20% over the prior year period; and
net income to be between $0.43 and $0.45 per diluted share.
First quarter revenues are expected to be impacted by the timing of
monthly starts, which will effectively result in an additional week of
revenue flowing into the second quarter as a result of a later class
start in March.
1On January 3, 2011, APUS combined one-credit lab courses
with their related three-credit classes. As a result, the company plans
to report future net course registrations for the resulting four-credit
courses as one registration. In the first quarter 2011 outlook, net
course registration growth rates exclude other non-credit registrations
and are presented as if labs and classes were combined in the prior year
period.
Webcast:
A live webcast of the Company's fourth quarter and full year earnings
conference call will be broadcast at 5:00 p.m. EST 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 83,000 adult learners worldwide and offers 79
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, Inc. or its subsidiaries, that are not historical facts are
forward-looking statements based on current expectations, assumptions,
estimates and projections about American Public Education, Inc. 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 and share repurchase activity. 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, |
|
|
2010 |
|
2009 |
|
|
(Unaudited) |
|
|
|
|
|
|
Revenues
|
|
$
|
56,314
|
|
$
|
43,653
|
|
Costs and expenses:
|
|
|
|
|
|
Instructional costs and services
|
|
|
20,425
|
|
|
16,522
|
|
Selling and promotional
|
|
|
9,446
|
|
|
5,394
|
|
General and administrative
|
|
|
8,768
|
|
|
6,476
|
|
Depreciation and amortization
|
|
|
1,844
|
|
|
1,297
|
|
|
|
|
|
|
Total costs and expenses
|
|
|
40,483
|
|
|
29,689
|
|
|
|
|
|
|
Income from operations before interest income and income taxes
|
|
15,831
|
|
|
13,964
|
|
Interest income, net
|
|
|
26
|
|
|
24
|
|
|
|
|
|
|
Income before income taxes
|
|
|
15,857
|
|
|
13,988
|
|
Income tax expense
|
|
|
6,250
|
|
|
5,609
|
|
|
|
|
|
|
Net income
|
|
$
|
9,607
|
|
$
|
8,379
|
|
|
|
|
|
|
|
|
|
|
|
Net Income per common share:
|
|
|
|
|
|
Basic
|
|
$
|
0.53
|
|
$
|
0.46
|
|
|
|
|
|
|
Diluted
|
|
$
|
0.52
|
|
$
|
0.44
|
|
|
|
|
|
|
Weighted average number of common shares:
|
|
|
|
|
|
Basic
|
|
|
17,975
|
|
|
18,250
|
|
|
|
|
|
|
Diluted
|
|
|
18,434
|
|
|
18,931
|
|
|
|
|
|
|
|
|
|
|
| American Public Education, Inc. |
| Consolidated Statement of Income |
| (In thousands, except per share data) |
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
December 31, |
|
|
2010 |
|
2009 |
|
|
(Unaudited) |
|
|
|
|
|
|
Revenues
|
|
$
|
198,174
|
|
$
|
148,998
|
|
Costs and expenses:
|
|
|
|
|
|
Instructional costs and services
|
|
|
75,309
|
|
|
58,383
|
|
Selling and promotional
|
|
|
34,296
|
|
|
20,479
|
|
General and administrative
|
|
|
32,045
|
|
|
25,039
|
|
Depreciation and amortization
|
|
|
6,502
|
|
|
5,231
|
|
|
|
|
|
|
Total costs and expenses
|
|
|
148,152
|
|
|
109,132
|
|
|
|
|
|
|
Income from operations before interest income and income taxes
|
|
|
50,022
|
|
|
39,866
|
|
Interest income, net
|
|
|
111
|
|
|
94
|
|
|
|
|
|
|
Income before income taxes
|
|
|
50,133
|
|
|
39,960
|
|
Income tax expense
|
|
|
20,265
|
|
|
16,017
|
|
|
|
|
|
|
Net income
|
|
$
|
29,868
|
|
$
|
23,943
|
|
|
|
|
|
|
|
|
|
|
|
Net Income per common share:
|
|
|
|
|
|
Basic
|
|
$
|
1.63
|
|
$
|
1.32
|
|
|
|
|
|
|
Diluted
|
|
$
|
1.59
|
|
$
|
1.27
|
|
|
|
|
|
|
Weighted average number of common shares:
|
|
|
|
|
|
Basic
|
|
|
18,281
|
|
|
18,167
|
|
|
|
|
|
|
Diluted
|
|
|
18,837
|
|
|
18,906
|
|
|
|
|
|
|
|
|
| American Public Education, Inc. |
|
Consolidated Balance Sheet
|
| (In thousands, except per share data) |
|
|
|
As of |
|
|
December 31, |
|
|
2009 |
|
2010 |
|
|
(Unaudited)
|
| Assets |
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
74,866
|
|
|
$
|
81,352
|
|
|
Accounts receivable, net of allowance of $896 in 2009 and $1,050 in
2010
|
|
|
8,664
|
|
|
|
10,269
|
|
|
Prepaid expenses
|
|
|
2,990
|
|
|
|
4,233
|
|
|
Income tax receivable
|
|
|
863
|
|
|
|
780
|
|
|
Deferred income taxes
|
|
|
999
|
|
|
|
1,369
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
88,382
|
|
|
|
98,003
|
|
|
Property and equipment, net
|
|
|
25,294
|
|
|
|
42,415
|
|
|
Other assets
|
|
|
2,077
|
|
|
|
1,421
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
115,753
|
|
|
$
|
141,839
|
|
|
|
|
|
|
|
|
| Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
6,756
|
|
|
$
|
9,422
|
|
|
Accrued liabilities
|
|
|
8,003
|
|
|
|
9,349
|
|
|
Deferred revenue and student deposits
|
|
|
14,204
|
|
|
|
18,815
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
28,963
|
|
|
|
37,586
|
|
|
Deferred income taxes
|
|
|
4,772
|
|
|
|
6,953
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
33,735
|
|
|
|
44,539
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
Preferred Stock, $.01 par value; Authorized shares - 10,000; no
shares issued or outstanding
|
|
|
--
|
|
|
|
--
|
|
|
Common Stock, $.01 par value; authorized shares - 100,000; 18,593
issued and 17,911 outstanding in 2010; 18,276 issued and
outstanding in 2009
|
|
|
183
|
|
|
|
186
|
|
|
Additional paid-in capital
|
|
|
136,380
|
|
|
|
141,757
|
|
|
Less cost of 682 shares of repurchased stock in 2010
|
|
|
--
|
|
|
|
( 19,966
|
)
|
|
Accumulated deficit
|
|
|
( 54,545
|
)
|
|
|
( 24,677
|
)
|
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
82,018
|
|
|
|
97,300
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
115,753
|
|
|
$
|
141,839
|
|
|
|
|
|
|
|
|
|
|
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
Associate Vice President, Corporate Communications
703-334-3880