CHARLES TOWN, W.Va.--(BUSINESS WIRE)--Feb. 28, 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 and year ended December 31, 2012.
Recent Highlights:
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Net course registrations increased to approximately 105,300
in the fourth quarter of 2012, a year-over-year increase of 10%.
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Net course registrations by new students in the fourth quarter of 2012
were approximately 22,600, a decrease of approximately 8% over the
same period of 2011.
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Fourth quarter 2012 revenues increased 14% to $86.0 million, compared
to $75.7 million in the fourth quarter of 2011.
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Income from operations before interest income and income taxes in the
fourth quarter of 2012 increased 8% to $21.4 million, compared to
$19.8 million in the same period of 2011.
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Net income for the fourth quarter of 2012 was $13.2 million, or $0.74
per diluted share, compared to $13.0 million, or $0.71 per diluted
share, in the same period of 2011.
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American Public University System received approval from The Higher
Learning Commission to offer a Bachelor of Science in Electrical
Engineering.
Financial and Other Results:
Total revenues for the fourth quarter of 2012 increased 14% to $86.0
million, compared to total revenues of $75.7 million in the fourth
quarter of 2011. Income from operations before interest income and
income taxes in the fourth quarter of 2012 increased 8% to $21.4
million, compared to $19.8 million in the same period of 2011.
Stock-based compensation expense reduced operating income by $947,000 in
the fourth quarter of 2012, and $769,000 in the fourth quarter of 2011.
Net income for the fourth quarter of 2012 was $13.2 million, or $0.74
per diluted share, which includes $0.03 per diluted share in stock-based
compensation expense, net of tax. This compares to net income of $13.0
million, or $0.71 per diluted share for the fourth quarter of 2011,
including $0.03 per diluted share in stock-based compensation expense,
net of tax. The weighted average diluted shares outstanding for the
fourth quarter of 2012 and 2011 were approximately 17.8 million and 18.2
million, respectively.
For the twelve months ended December 31, 2012, total revenues were
$313.5 million, an increase of 20% compared to total revenues of $260.4
million in the same period of 2011. Income from operations before
interest income and income tax for the twelve months ended December 31,
2012 increased to $68.8 million, compared to $62.9 million in the same
period of 2011. Stock-based compensation expense reduced each period's
operating income by $3.8 million and $3.2 million, respectively.
Net income for the twelve months ended December 31, 2012 increased to
$42.3 million, or $2.35 per diluted share, which includes $0.13 per
diluted share in stock-based compensation expense, net of tax. This
compares to net income of $40.8 million, or $2.23 per diluted share in
the same period of 2011, including $0.11 per diluted share in
stock-based compensation expense, net of tax. Net income for the full
year 2011 included a tax benefit of approximately $1.8 million, or $0.10
per diluted share, resulting from state tax, and research and
development tax credits recorded during the third quarter of 2011. The
weighted average diluted shares outstanding for the twelve months ended
December 31, 2012 and 2011 were approximately 18.0 million and 18.3
million, respectively.
Total cash and cash equivalents as of December 31, 2012 were
approximately $114.9 million with no long-term debt. Cash from
operations for the twelve months ended December 31, 2012 was
approximately $52.9 million, compared to $70.4 million in the same
period of 2011. Capital expenditures were approximately $35.0 million
for the twelve months ended December 31, 2012, compared to $24.9 million
in the prior year period. Depreciation and amortization was $11.1
million for the twelve months ended December 31, 2012 and $9.2 million
for the same period of 2011.
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Net Course Registrations:
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For the three months ended December 31,
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2012
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2011
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% Change
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Net Course Registrations by New Students
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22,600
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24,600
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-8%
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Net Course Registrations
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105,300
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95,800
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10%
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For the twelve months ended December 31,
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2012
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2011
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% Change
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Net Course Registrations by New Students
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86,700
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85,200
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2%
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Net Course Registrations
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402,200
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343,700
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17%
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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.
First 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.
American Public Education anticipates first quarter 2013 net course
registrations by new students to decline between -7% and -5%
year-over-year; net course registrations to increase between
approximately 7% and 10% year-over-year; revenues to increase between
approximately 9% and 13% over the prior year period; and net income to
be between $0.55 and $0.58 per diluted share.
Webcast:
A live webcast of the Company’s fourth quarter and full-year 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.
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 approximately 127,000 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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December 31,
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2012
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2011
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(Unaudited)
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Revenues
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$
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86,000
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$
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75,667
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Costs and expenses:
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Instructional costs and services
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29,654
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26,152
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Selling and promotional
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16,485
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12,403
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General and administrative
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15,424
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14,769
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Depreciation and amortization
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3,015
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2,500
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Total costs and expenses
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64,578
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55,824
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Income from operations before interest income and income taxes
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21,422
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19,843
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Interest income, net
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118
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22
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Income before income taxes
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21,540
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19,865
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Income tax expense
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8,279
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6,880
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Investment, net of taxes
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(86
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)
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-
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Net income
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$
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13,175
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$
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12,985
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Net Income per common share:
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Basic
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0.73
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$
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0.73
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Diluted
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0.74
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$
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0.71
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Weighted average number of common shares:
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Basic
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18,019
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17,844
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Diluted
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17,836
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18,226
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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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Twelve Months Ended
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December 31,
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2012
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2011
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(Unaudited)
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Revenues
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$
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313,516
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$
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260,377
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Costs and expenses:
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Instructional costs and services
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110,192
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95,216
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Selling and promotional
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59,761
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44,713
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General and administrative
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63,615
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48,350
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Depreciation and amortization
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11,146
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9,239
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Total costs and expenses
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244,714
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197,518
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Income from operations before interest income and income taxes
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68,802
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62,859
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Interest income, net
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135
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109
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Income before income taxes
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68,937
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62,968
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Income tax expense
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26,528
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22,211
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Investment, net of taxes
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(86
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-
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Net income
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$
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42,323
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$
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40,757
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Net Income per common share:
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Basic
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$
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2.38
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$
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2.28
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Diluted
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$
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2.35
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$
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2.23
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Weighted average number of common shares:
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Basic
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17,772
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17,877
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Diluted
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18,041
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18,295
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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
Vice President, Investor Relations
703-334-3880