CHARLES TOWN, W.Va.--(BUSINESS WIRE)--Feb. 26, 2015--
American Public Education, Inc. (NASDAQ:APEI) – parent company of online
learning provider American
Public University System (APUS) and campus-based Hondros
College of Nursing – announced financial results for the quarter and
year ended December 31, 2014.
Recent Results:
-
Fourth quarter 2014 revenues increased 10% to $91.3 million, compared
to $82.9 million in the same period of 2013.
-
Income from operations before interest income and income taxes in the
fourth quarter of 2014 increased 28% to $18.6 million, compared to
$14.5 million in the same period of 2013.
-
Net income for the fourth quarter of 2014 increased to $11.8 million,
or $0.68 per diluted share, compared to $9.0 million, or $0.51 per
diluted share, in the same period of 2013.
-
At American Public University System, net course registrations in the
fourth quarter of 2014 increased approximately 7% year-over-year and
net course registrations by new students in the fourth quarter of 2014
decreased approximately 6% year-over-year.
-
As of December 31, 2014, active student enrollment at American Public
University System decreased 1% to 111,000 students, compared to
112,400 students at December 31, 2013.
-
American Public University System undergraduate programs ranked in top
10 percent in U.S. News & World Report 2015 National Online Rankings –
advancing seven places over its 2014 ranking to #27 nationally out of
292 schools.
-
As of December 31, 2014, student enrollment at Hondros College of
Nursing increased approximately 11% to 1,470 students, compared to
1,330 students as of December 31, 2013.
Financial Results:
Total revenues for the fourth quarter of 2014 increased 10% to $91.3
million, compared to total revenues of $82.9 million in the fourth
quarter of 2013. Income from operations before interest income and
income taxes in the fourth quarter of 2014 was $18.6 million, compared
to $14.5 million in the fourth quarter of 2013. Net income for the
fourth quarter of 2014 was $11.8 million, or $0.68 per diluted share,
compared to net income of $9.0 million, or $0.51 per diluted share for
the fourth quarter of 2013. The weighted average diluted shares
outstanding for the fourth quarter of 2014 and 2013 were approximately
17.4 million and 17.8 million, respectively.
For the twelve months ended December 31, 2014, total revenues increased
6% to $350.0 million, compared to total revenues of $329.5 million in
the prior year period. Income from operations before interest income and
income taxes for the twelve months ended December 31, 2014 was $65.8
million, compared to $67.4 million in the prior year period. Net income
for the twelve months ended December 31, 2014 was $40.9 million, or
$2.33 per diluted share, compared to net income of $42.0 million, or
$2.35 per diluted share in the prior year period. The weighted average
diluted shares outstanding for the twelve months ended December 31, 2014
and 2013 were approximately 17.5 million and 17.9 million, respectively.
On November 1, 2013, APEI acquired National Education Seminars, Inc.
(referred to as Hondros College of Nursing); therefore, the consolidated
results for the months and 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 December 31, 2014 were
approximately $115.6 million with no long-term debt. Capital
expenditures were approximately $24.6 million for the twelve months
ended December 31, 2014, compared to $20.6 million in the prior year
period. Depreciation and amortization was $16.1 million for the twelve
months ended December 31, 2014, compared to $13.5 million for the same
period of 2013.
Enrollments and Registrations:
|
American Public University System
|
|
|
|
|
|
|
|
For the three months ended December 31,
|
|
2014
|
|
2013
|
|
% Change
|
|
Net Course Registrations by New Students
|
|
19,000
|
|
20,300
|
|
-6%
|
|
Net Course Registrations
|
|
101,800
|
|
95,400
|
|
7%
|
|
|
|
For the twelve months ended December 31,
|
|
|
|
|
|
|
|
Net Course Registrations by New Students
|
|
73,100
|
|
79,300
|
|
-8%
|
|
Net Course Registrations
|
|
403,900
|
|
409,700
|
|
-1%
|
|
|
|
As of December 31,
|
|
|
|
|
|
|
|
Active Student Enrollment
|
|
111,000
|
|
112,400
|
|
-1%
|
|
|
|
Hondros College of Nursing1
|
|
|
|
|
|
|
|
As of December 31,
|
|
2014
|
|
2013
|
|
% Change
|
|
New Student Enrollment
|
|
590
|
|
510
|
|
16%
|
|
Total Student Enrollment
|
|
1,470
|
|
1,330
|
|
11%
|
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.
First Quarter 2015 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 first quarter 2015 consolidated
revenues to decrease between approximately 5% and 3% year-over-year,
compared to the prior year period of 2014. The Company expects
consolidated net income of between $0.46 and $0.50 per diluted share in
the first quarter of 2015.
American Public Education also expects the following results from its
subsidiaries in the first quarter of 2015:
-
At American Public University System, net course registrations by new
students are expected to decrease between 18% and 13% year-over-year
and net course registrations are expected to decrease between 7% and
4% year-over-year.
-
At Hondros College of Nursing, new student enrollment increased by
approximately 14% year-over-year in the first quarter of 2015.
Webcast:
A live webcast of the Company’s fourth quarter and full year 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 more than
112,000 adult learners worldwide and offer more than 100 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, 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, 2014 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.
|
|
|
American Public Education, Inc.
|
|
Consolidated Statement of Income
|
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
December 31,
|
|
|
|
2014
|
|
2013
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
91,297
|
|
$
|
82,937
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
Instructional costs and services
|
|
|
31,594
|
|
|
29,033
|
|
Selling and promotional
|
|
|
17,232
|
|
|
17,114
|
|
General and administrative
|
|
|
19,626
|
|
|
18,660
|
|
Depreciation and amortization
|
|
|
4,220
|
|
|
3,613
|
|
|
|
|
|
|
|
|
|
Total costs and expenses
|
|
|
72,672
|
|
|
68,420
|
|
|
|
|
|
|
|
|
|
Income from operations before interest income and income taxes
|
|
|
18,625
|
|
|
14,517
|
|
Interest income, net
|
|
|
84
|
|
|
80
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
18,709
|
|
|
14,597
|
|
Income tax expense
|
|
|
6,773
|
|
|
5,640
|
|
Equity investment loss, net of taxes
|
|
|
139
|
|
|
40
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
11,797
|
|
$
|
8,997
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income per common share:
|
|
|
|
|
|
Basic
|
|
$
|
0.69
|
|
$
|
0.51
|
|
Diluted
|
|
$
|
0.68
|
|
$
|
0.51
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares:
|
|
|
|
|
|
|
|
Basic
|
|
|
17,209
|
|
|
17,557
|
|
Diluted
|
|
|
17,350
|
|
|
17,799
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Segment Information:
|
|
December 31,
|
|
|
|
2014
|
|
2013
|
|
Revenues:
|
|
|
|
|
|
|
|
American Public Education, Inc.
|
|
$
|
83,045
|
|
$
|
79,136
|
|
Hondros College of Nursing
|
|
$
|
8,252
|
|
$
|
3,801
|
|
Income from operations before interest income and income taxes:
|
|
|
|
|
|
|
|
American Public Education, Inc.
|
|
$
|
17,465
|
|
$
|
14,241
|
|
Hondros College of Nursing
|
|
$
|
1,169
|
|
$
|
276
|
|
|
|
|
|
|
|
|
|
|
|
American Public Education, Inc.
|
|
Consolidated Statement of Income
|
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
(Audited)
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
350,020
|
|
|
$
|
329,479
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
Instructional costs and services
|
|
|
123,765
|
|
|
|
112,784
|
|
Selling and promotional
|
|
|
69,229
|
|
|
|
65,687
|
|
General and administrative
|
|
|
75,073
|
|
|
|
70,063
|
|
Depreciation and amortization
|
|
|
16,121
|
|
|
|
13,508
|
|
|
|
|
|
|
|
|
|
|
Total costs and expenses
|
|
|
284,188
|
|
|
|
262,042
|
|
|
|
|
|
|
|
|
|
|
Income from operations before interest income and income taxes
|
|
|
65,832
|
|
|
|
67,437
|
|
Interest income, net
|
|
|
361
|
|
|
|
309
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
66,193
|
|
|
|
67,746
|
|
Income tax expense
|
|
|
25,150
|
|
|
|
25,645
|
|
Equity investment loss, net of taxes
|
|
|
(166)
|
|
|
|
(67)
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
40,877
|
|
|
$
|
42,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income per common share:
|
|
|
|
|
|
|
|
Basic
|
|
$
|
2.36
|
|
|
$
|
2.38
|
|
Diluted
|
|
$
|
2.33
|
|
|
$
|
2.35
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
17,357
|
|
|
|
17,656
|
|
Diluted
|
|
|
17,543
|
|
|
|
17,921
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
Segment Information:
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
Revenues:
|
|
|
|
|
|
|
|
|
American Public Education, Inc.
|
|
$
|
319,879
|
|
|
$
|
325,678
|
|
Hondros College of Nursing
|
|
$
|
30,141
|
|
|
$
|
3,801
|
|
Income from operations before interest income and income taxes:
|
|
|
|
|
|
|
|
|
American Public Education, Inc.
|
|
$
|
62,499
|
|
|
$
|
67,161
|
|
Hondros College of Nursing
|
|
$
|
3,333
|
|
|
$
|
276
|
|
|
|
|
|
|
|
|
|
On November 1, 2013, APEI acquired National Education Seminars, Inc.
(referred to as Hondros College of Nursing); therefore, the consolidated
results for the months and periods prior to November 1, 2013 do not
include any results from the Hondros College of Nursing Segment.
Source: American Public Education, Inc.
American Public Education, Inc.
Richard W. Sunderland, Jr., CPA,
304-885-5371
Executive Vice President and Chief Financial Officer
or
Christopher
L. Symanoskie, 703-334-3880
Vice President, Investor Relations