CHARLES TOWN, W. Va.--(BUSINESS WIRE)--May. 9, 2013--
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 ended March 31, 2013.
Recent Highlights:
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Net course registrations increased to approximately 109,700
in the first quarter of 2013, a year-over-year increase of 9%.
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Net course registrations by new students in the first quarter of 2013
were approximately 19,100, a decrease of approximately -7% over the
same period of 2012.
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First quarter 2013 revenues increased 11% to $83.8 million, compared
to $75.8 million in the first quarter of 2012.
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Income from operations before interest income and income taxes in the
first quarter of 2013 increased 22% to $18.2 million, compared to
$14.9 million in the same period of 2012.
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Net income for the first quarter of 2013 increased 25% to $11.4
million, or $0.63 per diluted share, compared to $9.1 million, or
$0.50 per diluted share, in the same period of 2012.
Financial and Other Results:
Total revenues for the first quarter of 2013 increased 11% to $83.8
million, compared to total revenues of $75.8 million in the first
quarter of 2012. Income from operations before interest income and
income taxes in the first quarter of 2013 increased 22% to $18.2
million, compared to $14.9 million in the same period of 2012.
Stock-based compensation expense reduced each period’s operating income
by approximately $1.0 million in the first quarter of 2013 and in the
first quarter of 2012.
Net income for the first quarter of 2013 was $11.4 million, or $0.63 per
diluted share, which includes $0.03 per diluted share in stock-based
compensation expense, net of tax. This compares to net income of $9.1
million, or $0.50 per diluted share for the first quarter of 2012,
including $0.03 per diluted share in stock-based compensation expense,
net of tax. The weighted average diluted shares outstanding for the
first quarter of 2013 and for the first quarter of 2012 were
approximately 18.0 million and 18.2 million, respectively.
Total cash and cash equivalents as of March 31, 2013 were approximately
$120.6 million with no long-term debt. Cash from operations for the
three months ended March 31, 2013 was approximately $20.6 million,
compared to $14.8 million in the same period of 2012. Capital
expenditures were approximately $5.9 million for the three months ended
March 31, 2013, compared to $6.6 million in the prior year period.
Depreciation and amortization was $3.2 million for the three months
ended March 31, 2013 and $2.7 million for the same period of 2012.
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Net Course Registrations:
For the three months ended March 31,
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2013
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2012
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% Change
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Net Course Registrations by New Students
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19,100
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20,500
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-7%
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Net Course Registrations
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109,700
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101,000
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9%
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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. Net course
registrations and net course registration growth rates include
registrations for certain one-credit courses (non-lab courses) and
other non-credit registrations in the current and prior year periods.
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Second Quarter 2013 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.
The Company believes that the temporary suspension of Department of
Defense (DoD) voluntary education Tuition Assistance (TA) programs
negatively impacted net course registrations in the months of April and
May 2013.
As a result of the temporary suspension of TA, sequestration-related
events and other possible factors, American Public Education anticipates
second quarter 2013 net course registrations by new students to decline
between -14% and -10% year-over-year; net course registrations to
increase between approximately 9% and 12% year-over-year; and revenues
to increase between approximately 10% and 13% over the prior year period.
In the second quarter of 2013, the Company expects net income to be
between $0.53 and $0.58 per diluted share, which includes approximately
$0.02 to $0.03 per diluted share of legal and financial due diligence
expenses incurred in connection with the Company's review of potential
transactions.
Webcast:
A live webcast of the Company’s first quarter earnings conference call
will be broadcast today at 5:00 p.m. Eastern time. 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, operates
through American
Military University (AMU) and American
Public University (APU). APUS serves more than 100,000 adult
learners worldwide and offers 87 degree programs in fields ranging from
homeland security, military studies, intelligence, and criminal justice
to technology, business administration, public health, and liberal arts.
Nationally recognized for its best practices in online higher education,
APUS provides an affordable education through classes taught by
experienced faculty who are committed to the academic achievement of
their students.
American Public University System is accredited by The Higher Learning
Commission and is a member of the North Central Association of Colleges
and Schools (www.ncahlc.org).
For more information about APUS graduation rates, median debt of
students who completed programs, and other important information, visit www.apus.edu/disclosure.
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, expected revenues and expected earnings.
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, 2012 and other filings 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.
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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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Three Months Ended
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March 31,
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2013
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2012
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(Unaudited)
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Revenues
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$
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83,840
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$
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75,822
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Costs and expenses:
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Instructional costs and services
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28,405
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27,853
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Selling and promotional
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16,539
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14,371
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General and administrative
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17,479
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16,072
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Depreciation and amortization
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3,207
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2,656
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Total costs and expenses
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65,630
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60,952
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Income from operations before interest income and income taxes
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18,210
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14,870
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Interest income, net
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64
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21
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Income before income taxes
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18,274
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14,891
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Income tax expense
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6,850
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5,808
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Equity investment loss, net of taxes
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48
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-
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Net income
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$
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11,376
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$
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9,083
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Net Income per common share:
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Basic
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0.64
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$
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0.51
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Diluted
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0.63
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$
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0.50
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Weighted average number of common shares:
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Basic
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17,764
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17,854
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Diluted
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18,000
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18,234
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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
Vice President, Investor Relations