CHARLES TOWN, W.Va.--(BUSINESS WIRE)--Nov. 5, 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 September 30, 2013.
Recent Highlights:
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Third quarter 2013 revenues increased 6% to $81.8 million, compared to
$77.1 million in the same period of 2012.
-
Income from operations before interest income and income taxes in the
third quarter of 2013 was $17.5 million, compared to $17.5 million in
the same period of 2012.
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Net income for the third quarter of 2013 increased 1% to $10.9
million, or $0.61 per diluted share, compared to $10.8 million, or
$0.60 per diluted share, in the same period of 2012.
-
Net course registrations increased to approximately 105,200
in the third quarter of 2013, a year-over-year increase of 2%.
-
Net course registrations by new students in the third quarter of 2013
were approximately 22,100, a decrease of approximately 8% over the
same period of 2012.
-
American Public Education, Inc. announced completion of the previously
disclosed transaction to acquire 100% ownership interest in National
Education Seminars, Inc., operating as Hondros
College, Nursing Programs, for an aggregate purchase price of
approximately $45 million in cash.
Financial Results:
Total revenues for the third quarter of 2013 increased 6% to $81.8
million, compared to total revenues of $77.1 million in the third
quarter of 2012. Income from operations before interest income and
income taxes in the third quarter of 2013 was $17.5 million, which is
the same as the prior year period. Stock-based compensation expense
reduced operating income by approximately $1.0 million in the third
quarter of 2013 and $0.9 million in the third quarter of 2012.
Net income for the third quarter of 2013 was $10.9 million, or $0.61 per
diluted share, which includes $0.03 per diluted share in stock-based
compensation expense, net of tax. This compares to net income of $10.8
million, or $0.60 per diluted share for the third 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
third quarter of 2013 and for the third quarter of 2012 were
approximately 17.9 million and 18.0 million, respectively.
For the nine months ended September 30, 2013, total revenues were $246.5
million, an increase of 8% compared to total revenues of $227.5 million
in the same period of 2012. Income from operations before interest
income and income tax for the nine months ended September 30, 2013
increased 12% to $52.9 million, compared to $47.4 million in the same
period of 2012. Stock-based compensation expense reduced each period's
operating income by $3.0 million and $2.9 million, respectively.
Net income for the nine months ended September 30, 2013 increased to
$33.0 million, or $1.84 per diluted share, which includes $0.10 per
diluted share in stock-based compensation expense, net of tax. This
compares to net income of $29.1 million, or $1.61 per diluted share, in
the same period of 2012, including $0.10 per diluted share in
stock-based compensation expense, net of tax. The weighted average
diluted shares outstanding for the nine months ended September 30, 2013
and 2012 were approximately 17.9 million and 18.1 million, respectively.
Total cash and cash equivalents as of September 30, 2013 were
approximately $143.8 million with no long-term debt. Cash from
operations for the nine months ended September 30, 2013 was
approximately $54.2 million, compared to $34.5 million in the same
period of 2012. Capital expenditures were approximately $15.1 million
for the three months ended September 30, 2013, compared to $28.5 million
in the prior year period. Depreciation and amortization was $3.4 million
for the three months ended September 30, 2013 and $2.8 million for the
same period of 2012.
On November 1, 2013, the Company announced that it had acquired National
Education Seminars, Inc., operating as Hondros College, Nursing Programs
(“HCON”), in a stock purchase transaction. The Company acquired all of
the outstanding equity of HCON for an adjusted aggregate purchase price,
subject to post-closing working capital adjustments, of approximately
$45.0 million. The Company assumed no debt in the acquisition of HCON.
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Net Course Registrations:
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For the three months ended September 30,
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2013
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|
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2012
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% Change
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Net Course Registrations by New Students
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22,100
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24,000
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-8%
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Net Course Registrations
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105,200
|
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103,000
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2%
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For the nine months ended September 30,
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2013
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|
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2012
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% Change
|
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Net Course Registrations by New Students
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|
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59,000
|
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64,100
|
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-8%
|
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Net Course Registrations
|
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314,300
|
|
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296,900
|
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6%
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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.
Fourth 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 fourth quarter 2013 net course
registrations by new students to decline between -9% and -5%
year-over-year; net course registrations to decline -7% and -3%
year-over-year; and revenues to decrease between approximately -9% and
-5% over the prior year period. In the fourth quarter of 2013, the
Company expects net income to be between $0.50 and $0.54 per diluted
share.
As previously announced in the Company’s Current Report on Form 8-K
filed October 15, 2013, American Public Education believes net course
registrations and financial results fourth quarter 2013 were adversely
impacted by the temporary suspension of the U.S. Department of Defense
Tuition Assistance program as a result of the recent U.S. government
partial shutdown.
Webcast:
A live webcast of the Company’s third 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 a leading education
services provider founded to prepare adult learners for service and
leadership in a diverse global economy. The Company offers innovative
and affordable educational programs and services to students,
universities and partner organizations through wholly owned
subsidiaries: American
Public University System (APUS) and Hondros
College, Nursing Programs. These institutions serve over 100,000
adult learners worldwide and offer more than 90 degree programs in
fields ranging from homeland security, military studies, intelligence,
and criminal justice to technology, business administration, public
health, nursing and liberal arts. For additional information, please
visit http://AmericanPublicEducation.com.
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, Quarterly Report on Form 10-Q for the quarter ended
September 30, 2013, 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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September 30,
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2013
|
|
|
2012
|
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(Unaudited)
|
|
|
|
|
|
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|
|
|
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|
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Revenues
|
|
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$
|
81,777
|
|
|
|
$
|
77,122
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Costs and expenses:
|
|
|
|
|
|
|
|
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Instructional costs and services
|
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28,139
|
|
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|
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26,436
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Selling and promotional
|
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15,989
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|
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|
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14,430
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General and administrative
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|
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16,766
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|
|
|
|
15,978
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Depreciation and amortization
|
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|
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3,376
|
|
|
|
|
2,760
|
|
|
|
|
|
|
|
|
|
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Total costs and expenses
|
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|
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64,270
|
|
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|
|
59,604
|
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|
|
|
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Income from operations before interest income and income taxes
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17,507
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|
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17,518
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Interest income, net
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77
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|
|
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|
30
|
|
|
|
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|
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Income before income taxes
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17,584
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|
|
|
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17,548
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Income tax expense
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6,612
|
|
|
|
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6,724
|
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Equity investment loss, net of taxes
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(61
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)
|
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-
|
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|
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|
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Net income
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$
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10,911
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|
|
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$
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10,824
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Net Income per common share:
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|
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|
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Basic
|
|
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0.62
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$
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0.61
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Diluted
|
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0.61
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$
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0.60
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|
|
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|
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|
|
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Weighted average number of common shares:
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|
|
|
|
|
|
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Basic
|
|
|
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17,658
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|
|
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17,706
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|
|
|
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|
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|
|
|
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Diluted
|
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|
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17,877
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|
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17,951
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|
|
|
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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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|
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|
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|
|
|
|
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Nine Months Ended
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September 30,
|
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2013
|
|
|
2012
|
|
|
|
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(Unaudited)
|
|
|
|
|
|
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|
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Revenues
|
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$
|
246,542
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$
|
227,516
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Costs and expenses:
|
|
|
|
|
|
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|
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Instructional costs and services
|
|
|
|
83,751
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|
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|
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80,538
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Selling and promotional
|
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|
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48,573
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|
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43,276
|
|
General and administrative
|
|
|
|
51,403
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|
|
|
|
48,191
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Depreciation and amortization
|
|
|
|
9,895
|
|
|
|
|
8,131
|
|
|
|
|
|
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|
|
|
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Total costs and expenses
|
|
|
|
193,622
|
|
|
|
|
180,136
|
|
|
|
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|
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|
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Income from operations before interest income and income taxes
|
|
|
|
52,920
|
|
|
|
|
47,380
|
|
Interest income, net
|
|
|
|
230
|
|
|
|
|
17
|
|
|
|
|
|
|
|
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|
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Income before income taxes
|
|
|
|
53,150
|
|
|
|
|
47,397
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Income tax expense
|
|
|
|
20,006
|
|
|
|
|
18,249
|
|
Equity investment loss, net of taxes
|
|
|
|
(107
|
)
|
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|
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—
|
|
|
|
|
|
|
|
|
|
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|
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Net income
|
|
|
$
|
33,037
|
|
|
|
$
|
29,148
|
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|
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|
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Net Income per common share:
|
|
|
|
|
|
|
|
|
|
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Basic
|
|
|
|
1.87
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|
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$
|
1.64
|
|
|
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|
|
|
|
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Diluted
|
|
|
|
1.84
|
|
|
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$
|
1.61
|
|
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|
|
|
|
|
|
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Weighted average number of common shares:
|
|
|
|
|
|
|
|
|
|
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Basic
|
|
|
|
17,689
|
|
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|
|
17,824
|
|
|
|
|
|
|
|
|
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Diluted
|
|
|
|
17,943
|
|
|
|
|
18,104
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|
|
|
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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