CHARLES TOWN, W.Va.--(BUSINESS WIRE)--May 8, 2014--
American Public Education, Inc. (NASDAQ: APEI) – parent company of
online learning provider American
Public University System (APUS) and campus-based Hondros
College, Nursing Programs (referred to in this press release as
Hondros College of Nursing) – announced financial results for the
quarter ended March 31, 2014.
Recent Results:
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First quarter 2014 revenues increased 6% to $88.6 million, compared to
$83.8 million in the same period of 2013.
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Income from operations before interest income and income taxes in the
first quarter of 2014 was $16.7 million, compared to $18.2 million in
the same period of 2013.
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Net income for the first quarter of 2014 decreased to $10.4 million,
or $0.59 per diluted share, compared to $11.4 million, or $0.63 per
diluted share, in the same period of 2013.
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At American Public University System, net course registrations by new
students in the first quarter of 2014 decreased approximately 8%
year-over-year, driven by a 21% decrease in net course registrations
by new students using U.S. Department of Defense tuition assistance
programs.
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At American Public University System, net course registrations in the
first quarter of 2014 decreased approximately 4% year-over-year,
driven by a 10% decrease in net course registrations by students using
U.S. Department of Defense tuition assistance programs.
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As of March 31, 2014, student enrollment at Hondros College of Nursing
increased 14% to 1,290 students, compared to 1,130 students at March
31, 2013.
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On April 2, 2014, American Public Education, Inc. made a minority
investment in a game-based learning company.
Financial Results:
Total revenues for the first quarter of 2014 increased 6% to $88.6
million, compared to total revenues of $83.8 million in the first
quarter of 2013. Income from operations before interest income and
income taxes in the first quarter of 2014 was $16.7 million, compared to
$18.2 million in the prior year period. Stock-based compensation expense
reduced operating income by approximately $1.2 million in the first
quarter of 2014 and $1.0 million in the first quarter of 2013.
Net income for the first quarter of 2014 was $10.4 million, or $0.59 per
diluted share, compared to net income of $11.4 million, or $0.63 per
diluted share for the first quarter of 2013. The weighted average
diluted shares outstanding for the first quarter of 2014 and 2013 were
approximately 17.8 million and 18.0 million, respectively.
On November 1, 2013, APEI acquired National Education Seminars, Inc.
(referred to as Hondros College of Nursing), therefore the consolidated
results for periods prior to November 1, 2013 do not include any results
from the Hondros College of Nursing segment.
Total cash and cash equivalents as of March 31, 2014 were approximately
$99.7 million with no long-term debt. Capital expenditures were
approximately $4.6 million for the three months ended March 31, 2014,
compared to $5.9 million in the prior year period. Depreciation and
amortization was $3.9 million for the three months ended March 31, 2014,
compared to $3.2 million for the same period of 2013.
On April 2, 2014, APEI invested $1.5 million in cash to acquire
approximately 25% of the fully diluted common share equivalents of a
game-based learning company that develops custom software for education.
The completed transaction entitles APEI to certain rights and
privileges, including board membership.
APUS and Hondros College of Nursing plan to partner with the game-based
learning company to jointly develop courses, as well as to accelerate
development and implementation of interactive, personalized and adaptive
distance learning environments. By partnering with this innovative
company to deliver media rich course content, APUS and Hondros College
of Nursing seek to improve student engagement and outcomes in certain
courses through game-based and simulation-based learning.
Enrollments and Registrations:
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American Public University System
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For the three months ended March 31,
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2014
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2013
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% Change
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Net Course Registrations by New Students
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17,600
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19,100
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-8%
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Net Course Registrations
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105,800
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109,700
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-4%
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Hondros College of Nursing1
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As of March 31,
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2014
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2013
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% Change
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New Student Enrollment
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400
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280
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43%
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Total Student Enrollment
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1,290
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1,130
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14%
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Net course registrations represent the aggregate number of courses
for which students remain enrolled after the date by which they may drop
a course without financial penalty. Student enrollment represents
the number of students enrolled in one or more courses after the date by
which they may drop the course without financial penalty.
1 Hondros College of Nursing was acquired by APEI, effective
November 1, 2013.
Second Quarter 2014 Outlook:
The following statements are based on American Public Education’s
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 second quarter 2014 consolidated
revenues to increase between approximately 5% and 3% over the prior year
period. The Company expects consolidated net income of between $0.43 and
$0.50 per diluted share in the second quarter of 2014.
American Public Education also expects the following results from its
subsidiaries in the second quarter of 2014:
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At American Public University System, net course registrations by new
students are expected to decline between 7% and 4% year-over-year and
net course registrations are expected to decline between 5% and 2%
year-over-year.
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At Hondros College of Nursing, new student enrollment decreased by
approximately 10% year-over-year to 384 students in the second quarter
of 2014.
Webcast:
A live webcast of the Company’s first quarter 2014 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
American
Public Education, Inc. (NASDAQ: APEI) is a leading provider of
higher learning dedicated to preparing students all over the world for
excellence in service, leadership and achievement. The Company offers
respected, innovative and affordable academic programs and services to
students, universities and partner organizations through wholly owned
subsidiaries: American
Public University System (APUS) and National Education Seminars
Inc., which we refer to in this press release as Hondros
College of Nursing. Together, these institutions serve
approximately 115,000 adult learners worldwide and offer more than 95
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", “seek”, "could",
"estimate", "expect", "intend", "may", "should", "will" and "would".
These forward-looking statements include, without limitation, statements
regarding expected growth, expected registration and enrollments,
expected revenues, expected earnings and plans with respect to the
game-based learning company. 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, 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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March 31,
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2014
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2013
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(Unaudited)
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Revenues
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$
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88,553
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$
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83,840
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Costs and expenses:
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Instructional costs and services
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31,348
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28,405
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Selling and promotional
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17,067
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16,539
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General and administrative
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19,524
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17,479
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Depreciation and amortization
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3,889
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3,207
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Total costs and expenses
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71,828
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65,630
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Income from operations before interest income and income taxes
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16,725
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18,210
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Interest income, net
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81
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64
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Income before income taxes
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16,806
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18,274
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Income tax expense
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6,327
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6,850
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Equity investment income (loss), net of taxes
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43
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48
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Net income
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$
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10,436
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$
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11,376
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Net Income per common share:
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Basic
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0.59
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0.64
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Diluted
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0.59
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0.63
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Weighted average number of common shares:
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Basic
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17,599
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17,764
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Diluted
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17,805
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18,000
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Three Months Ended
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Segment Information:
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March 31,
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2014
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2013
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Revenues:
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American Public Education, Inc.
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$
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81,349
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$
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83,840
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Hondros College of Nursing
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$
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7,204
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$
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NA
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Income from operations before interest income and income taxes:
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American Public Education, Inc.
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$
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16,027
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$
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18,210
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Hondros College of Nursing
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$
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698
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$
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NA
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Source: American Public Education, Inc.
American Public Education, Inc.
Richard W. Sunderland, Jr., CPA
Executive
Vice President and Chief Financial Officer
304-885-5371
or
Christopher
L. Symanoskie
Vice President, Investor Relations
703-334-3880