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American Public Education Reports Third Quarter 2021 Results |

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CHARLES TOWN, W.Va., Nov. 8, 2021 /PRNewswire/ — American Public Education, Inc. (Nasdaq: APEI) introduced monetary outcomes for the quarter ended September 30, 2021.

Third Quarter Highlights:                                           

  • APEI accomplished the acquisition of Rasmussen University on September 1, 2021
  • Consolidated income elevated 24% year-over-year to $98.2 million, on account of the acquisition of RU
  • Net loss for the interval was $0.3 million, in comparison with web revenue of $2.6 million for the three months ended September 30, 2021, a lower of $2.9 million
  • Adjusted EBITDA decreased 16% year-over-year to $9.1 million
  • APEI agreed to accumulate Graduate School USA, a federal workforce coaching supplier

Results of operations for the three and 9 months ended September 30, 2021 embody the outcomes of Rasmussen University (“RU”) from September 1 by way of September 30, 2021. APEI didn’t consolidate the monetary outcomes of RU previous to September 1, 2021. Accordingly, the monetary outcomes of every interval offered are usually not immediately comparable.

Financial Results:

Three months ended September 30, 2021 in comparison with three months ended September 30, 2020:

  • Total consolidated income for 2021 elevated 24% to $98.2 million, in comparison with complete income of $79.1 million in 2020, as a consequence of:
    • the inclusion of RU income from September 1 by way of September 30, 2021 of $21.1 million (notice: the third month of every quarter for RU is traditionally the bottom as a result of timing of income recognition);
    • a rise of $1.7 million, or 18%, in income from Hondros College of Nursing (HCN), reflecting a rise in enrollment of 19% to 2,320 college students;
    • a lower of $3.8 million, or -5%, in income from American Public University System (APUS), primarily as a consequence of a decline in web course registrations of 8% in 2021 in comparison with 2020
  • Total prices and bills elevated to $97.0 million for 2021 in comparison with $75.8 million in 2020, primarily as a result of inclusion of RU within the present quarter outcomes. RU’s prices as a share of income have been negatively impacted within the present quarter as a result of timing of the shut of the transaction.
    • Instructional prices and providers elevated to 43% of income in 2021, or $42.5 million, in comparison with 39% in 2020, as a result of inclusion of RU within the present quarter outcomes. Excluding RU, tutorial prices and providers as a % of income have been 39%.
    • Selling and promotional bills elevated to 24% of income in 2021, or $23.5 million, in comparison with 23% in 2020 as a result of inclusion of RU within the present quarter outcomes. Excluding RU, promoting and promotional bills as a % of income have been 23%.
    • General and administrative (“G&A”) bills decreased to 27% of income in 2021, or $26.6 million, in comparison with 28% in 2020 as a result of inclusion of RU at a decrease price as a % of income. G&A consists of $1.6 million of M&A-related skilled charges.
    • Depreciation and amortization bills elevated to $4.4 million in 2021, or 36%, primarily as a result of addition of the RU section within the 2021 interval and the amortization of the related acquired intangible belongings.
  • Interest expense elevated to $1.3 million in 2021, as in comparison with $0.1 million in curiosity revenue in 2020, as a result of $175 million time period mortgage issued in reference to the RU acquisition.
  • Net loss was $0.3 million in 2021 in comparison with web revenue of $2.6 million in 2020
  • Loss per diluted share was $0.01 in comparison with earnings of $0.18 per diluted share in the identical interval of 2020, pushed primarily by the identical components impacting the change in web revenue (loss).
  • Adjusted EBITDA was $9.1 million in 2021 in comparison with $10.8 million in 2020, pushed primarily by components impacting the change in web revenue (loss), excluding depreciation and amortization expense and curiosity expense. Additionally, the 2021 interval included $1.6 million of M&A associated skilled charges and $1.8 million of stock-based compensation expense, a lower of 16% and seven%, respectively in comparison with 2020.

Acquisition of Rasmussen University

On September 1, 2021, APEI accomplished the acquisition of Rasmussen University.  The remaining buy worth was $325.5 million, topic to post-closing working capital changes, and web of money acquired, and was funded by $170.5 million of money and money equivalents and the online proceeds from the $175 million senior secured time period mortgage issued in reference to the acquisition (the “Term Loan”).

Balance Sheet and Liquidity:

  • Total money and money equivalents as of September 30, 2021 have been roughly $141.5 million, in comparison with $227.7 million as of December 31, 2020, a 38% lower. The lower in money was as a result of acquisition of Rasmussen University on September 1, 2021, partially offset by web proceeds of roughly $86.2 million from the underwritten public providing of three,680,000 shares of our widespread inventory accomplished on March 1, 2021.
  • In conjunction with the issuance of the Term Loan, APEI additionally entered right into a revolving credit score facility (the “Credit Facility”) at time of the RU closing. The Credit Facility has an combination dedication quantity of $20 million, all of which remained undrawn on the finish of the third quarter of 2021.

Registrations and Enrollment:

2021

2020

% Change

American Public University System1

For the three months ended September 30,

  Net Course Registrations

83,100

90,300

-8%

For the 9 months ended September 30,

  Net Course Registrations

258,700

264,700

-2%

Rasmussen University2

For the three months ended September 30,

  Total Student Enrollment

16,900

17,200

-2%

Hondros College of Nursing3

For the three months ended September 30,

  Total Student Enrollment

2,320

1,950

19%

1

APUS Net Course Registrations represents the approximate combination variety of programs for which college students stay enrolled after the date by which they might drop a course with out monetary penalty.

Excludes college students in doctoral packages. 

2

Rasmussen Student Enrollment represents college students in an energetic standing as of the full-term census or billing date.

3

HCN Student Enrollment represents the approximate variety of college students enrolled in a course after the date by which college students could drop a course with out monetary penalty.  

Acquisition of Graduate School USA: 

On August 11, 2021, we introduced that we had entered into an settlement to accumulate considerably the entire belongings of Graduate School USA, or Graduate School, one of many largest suppliers of coaching to the federal authorities workforce, for roughly $1.0 million. The buy worth is topic to working capital changes, and the acquisition is anticipated to shut within the first quarter of 2022, topic to the satisfaction or waiver of closing circumstances.

Fourth Quarter 2021 Outlook: 

The following statements are based mostly on APEI’s present expectations. These statements are forward-looking and precise outcomes could differ materially. APEI undertakes no obligation to replace publicly any forward-looking statements for any motive except required by regulation.

Fourth Quarter 2021

Guidance

Full Year 2021

Guidance

(Approximate)

(% Yr/Yr

Change)

(Approximate)

(% Yr/Yr

Change)

APUS Net course registrations

84,000 to

86,600

-2% to -5%

342,600 to

345,200

-3% to -4%

HCN Student enrollment

2,510

17%

2,510

17%

RU Student enrollment

17,500

-3.5%

17,500

-3.5%

 – Nursing

8,800

8%

8,800

8%

 – Non-Nursing

8,700

-13%

8,700

-13%

($ in thousands and thousands besides EPS)

APEI Consolidated income

$150 to $155

75% to 80%

$415 to $419

29% to 30%

APEI Consolidated web revenue

$5.7 to $7.1

0% to -19%

$14.1 to $15.5

-18% to -25%

APEI Adjusted EBITDA

$23.8 to $26.3

50% to 66%

$59.0 to $61.5

17% to 21%

APEI Diluted EPS

$0.31 to $0.38

-19% to -34%

$0.77 to $0.85

-32% to -38%

Non-GAAP Financial Measures:

This press launch accommodates the non-GAAP monetary measures of EBITDA (earnings earlier than curiosity, taxes, depreciation and amortization) and Adjusted EBITDA (EBITDA much less non-cash bills reminiscent of inventory compensation and non-recurring bills). APEI believes that using these measures is beneficial as a result of they permit traders to raised consider APEI’s working revenue and money era capabilities.

For the three months ended September 30, 2020 and 2021, adjusted EBITDA excludes non-cash compensation expense, loss on disposals of long-lived belongings, and M&A-related skilled charges.

These non-GAAP measures shouldn’t be thought of in isolation or as a substitute for measures decided in accordance with usually accepted accounting rules in the United States (GAAP). The principal limitation of our non-GAAP measures are that they exclude bills which are required by GAAP to be recorded. In addition, non-GAAP measures are topic to inherent limitations as they replicate the train of judgment by administration about which bills are excluded.

APEI is presenting EBITDA and adjusted EBITDA in reference to its GAAP outcomes and urges traders to overview the reconciliation of EBITDA and adjusted EBITDA to the comparable GAAP monetary measures that’s included within the tables following this press launch (below the captions “GAAP Net Income to Adjusted EBITDA,” and “GAAP Outlook Net Income to Outlook Adjusted EBITDA”) and to not depend on any single monetary measure to guage its enterprise.

Webcast:

A dwell webcast of the APEI’s third quarter 2021 earnings convention name can be held right this moment at 5:00 p.m. Eastern time. This webcast can be open to listeners who log in by way of the APEI’s investor relations web site, www.apei.com.  

A replay of the dwell webcast may even be out there beginning roughly one hour after the conclusion of the dwell webcast. The replay can be archived and out there to listeners by way of APEI’s investor relations web site for one yr.

About American Public Education

American Public Education, Inc . (Nasdaq: APEI) is a number one supplier of career-focused larger schooling and coaching that gives pathways to employment and profession development. APEI operates by way of three wholly owned subsidiaries and delivers company companies providers to every. American Public University System, which operates by way of American Military University and American Public University, is the main educator to active-duty navy and veteran college students and serves roughly 90,000 grownup learners worldwide. APUS is frequently cited as one of the vital reasonably priced universities within the United States. Rasmussen University is a 120 year-old establishment that serves roughly 17,000 college students throughout its 23 campuses and scholar service facilities in six states and on-line. It is a Nursing and Health Sciences-focused establishment, additionally with faculties of Business, Technology, Design, Early Education and Justice Studies. Hondros College of Nursing “creates new nurses” by educating pre-licensure nursing college students at its six campuses in Ohio and one in Indiana, and is the most important educator of ADN (RN) and PN (LPN) Nurses within the state of Ohio with roughly 2,300 college students. Both APUS and Rasmussen are institutionally accredited by the Higher Learning Commission with Open Pathway designation. Hondros is accredited by the Accrediting Bureau of Health Education Schools. For further data, go to www.apei.com.

Forward Looking Statements

Statements made on this press launch concerning APEI or its subsidiaries that aren’t historic details are forward-looking statements based mostly on present expectations, assumptions, estimates and projections about APEI and the trade. In some instances, forward-looking statements will be recognized by phrases reminiscent of “anticipate,” “consider,” “search,” “might,” “estimate,” “count on,” “intend,” “could,” “plan,” “ought to,” “will,” “would,” and related phrases or their opposites. Forward-looking statements embody, with out limitation, statements concerning anticipated progress, registration and enrollments, revenues, revenue and EBITDA, advantages of the acquisition of Rasmussen University (the “Acquisition”) and plans with respect to latest, present and future initiatives.

Forward-looking statements are topic to dangers and uncertainties that might trigger precise outcomes to vary materially from these expressed or implied by such statements. Such dangers and uncertainties embody, amongst others, dangers associated to: actions taken by the Department of Defense or branches of the U.S. Armed Forces, together with actions taken associated to the disruption and suspension of Department of Defense tuition help; the consequences, length, and severity of and APEI’s response to the COVID-19 pandemic; moderation or lower in demand because the pandemic abates; dangers associated to the Acquisition; modifications to and expectations concerning enrollment, registrations and composition of APEI’s scholar physique; APEI’s dependence on the effectiveness of its potential to draw college students who persist in its establishments’ packages; APEI’s incapacity to successfully market its establishments’ packages; antagonistic results of modifications APEI makes to enhance the scholar expertise and improve the flexibility to determine and enroll college students who’re more likely to succeed; APEI’s incapacity to take care of robust relationships with the navy and preserve course registrations and enrollments from navy college students; APEI’s failure to adjust to regulatory and accrediting company necessities and to take care of institutional accreditation; APEI’s lack of eligibility to take part in Title IV packages or potential to course of Title IV monetary assist; APEI’s have to efficiently modify to future market calls for by updating current packages and creating new packages; APEI’s dependence on its know-how infrastructure; and the varied dangers described within the “Risk Factors” part and elsewhere in APEI’s Quarterly Report on Form 10-Q for the interval ended September 30, 2021 and Annual Report on Form 10-Okay for the yr ended December 31, 2020, and in different filings with the SEC. You shouldn’t place undue reliance on any forward-looking statements. APEI undertakes no obligation to replace publicly any forward-looking statements for any motive, except required by regulation, even when new data turns into out there or different occasions happen sooner or later.

Contacts:

Ryan Koren

AVP, Investor Relations & Corporate Development

(610) 428-7376

American Public Education, Inc.

Consolidated Statement of Income

(In hundreds, besides per share information)

Three Months Ended

September 30,

2021

2020

(unaudited)

Revenues 

$

98,248

$

79,133

Costs and bills: 

   Instructional prices and providers 

42,544

31,084

   Selling and promotional 

23,458

18,523

   General and administrative 

26,598

22,574

   Loss on disposals of long-lived belongings

418

   Depreciation and amortization

4,386

3,226

   Total prices and bills

96,986

75,825

Income from operations earlier than

  curiosity and revenue taxes

1,262

3,308

Interest (expense) revenue

(1,305)

121

(Loss) revenue earlier than revenue taxes

(43)

3,429

Income tax expense

224

785

Equity funding loss

(2)

Net (loss) revenue  

$

(267)

$

2,642

Net (loss) revenue per widespread share: 

    Basic

$

(0.01)

$

0.18

        Diluted

$

(0.01)

$

0.18

Weighted common variety of 

   widespread shares:

    Basic

18,670

14,797

        Diluted

18,855

15,011

Three Months Ended

Segment Information: 

September 30,

2021

2020

Revenues:

  APUS Segment

$

65,906

$

69,659

  RU Segment

$

21,132

$

  HCN Segment

$

11,240

$

9,541

  Corporate and different1

$

(30)

$

(67)

Income (loss) from operations earlier than

curiosity and revenue taxes:

  APUS Segment

$

7,825

$

7,392

  RU Segment

$

(999)

$

  HCN Segment

$

448

$

466

  Corporate and different

$

(6,012)

$

(4550)

Nine Months Ended

September 30,

2021

2020

(unaudited)

Revenues 

$

264,803

$

235,876

Costs and bills: 

   Instructional prices and providers 

105,257

91,058

   Selling and promotional 

60,350

53,765

   General and administrative 

75,579

65,314

   Loss on disposals of long-lived belongings

182

742

   Depreciation and amortization

9,561

9,955

   Total prices and bills

250,929

220,834

Income from operations earlier than

  curiosity revenue and revenue taxes

13,874

15,042

Interest (expense) revenue

(1,167)

1,002

Income earlier than revenue taxes

12,707

16,044

Income tax expense

3,509

4,291

Equity funding revenue (loss)

(827)

(2)

Net revenue  

$

8,371

$

11,751

Net revenue per widespread share: 

    Basic

$

0.47

$

0.79

        Diluted

$

0.46

$

0.78

Weighted common variety of 

   widespread shares:

    Basic

17,874

14,870

        Diluted

18,048

15,021

Nine Months Ended

Segment Information: 

September 30,

2021

2020

Revenues:

  APUS Segment

$

210,321

$

210,376

  RU Segment

$

21,132

$

  HCN Segment

$

33,506

$

25,682

  Corporate and different1

$

(156)

$

(182)

Income (loss) from operations earlier than

curiosity and revenue taxes:

  APUS Segment

$

30,969

$

29,785

  RU Segment

$

(999)

$

  HCN Segment

$

1,348

$

(455)

  Corporate and different

$

(17,444)

$

(14,288)

The RU Segment displays the operations of RU, which was acquired on the Closing Date, by way of September 30, 2021. The Company didn’t consolidate the monetary outcomes of the RU Segment previous to the Closing Date.

1.

The APUS Segment expenses the HCN Segment and company staff for the worth of programs taken by HCN Segment staff at APUS. The intersegment elimination represents the elimination of this intersegment income in consolidation.

 

GAAP Net Income to Adjusted EBITDA:

The following desk units forth the reconciliation of the Company’s reported GAAP web revenue to the calculation of adjusted EBITDA for the three and 9 months ended September 30, 2021 and 2020:

Three Months Ended

Nine Months Ended

September 30,

September 30,

(in hundreds, besides per share information)

2021

2020

2021

2020

Net (loss) revenue 

$

(267)

$

2,642

8,371

11,751

Income tax expense

224

785

3,509

4,291

Interest expense (revenue)

1,305

(121)

1,167

(1,002)

Equity funding loss 

2

827

2

Depreciation and amortization

4,386

3,226

9,561

9,955

EBITDA

5,648

6,534

23,435

24,997

Stock Compensation

1,804

1,942

5,969

5,265

Loss on disposals of long-lived belongings

418

182

742

M&A – associated skilled charges

1,629

1,937

5,596

3,803

Adjusted EBITDA

$

9,081

$

10,831

35,182

34,807

 

GAAP Outlook Net Income to Outlook Adjusted EBITDA:

The following desk units forth the reconciliation of the Company’s reported GAAP web revenue to the calculation of adjusted EBITDA for the three and twelve months ended December 31, 2021:

Three Months Ended

Twelve Months Ended

December 31, 2021

December 31, 2021

(in hundreds, besides per share information)

Low

High

Low

High

Net revenue 

$

5,700

$

7,125

$

14,071

$

15,496

Income tax expense

2,300

2,875

5,809

6,384

Interest expense (revenue)

3,420

3,420

4,587

4,587

Equity funding loss 

827

827

Depreciation and amortization

8,560

8,560

18,121

18,121

EBITDA

19,980

21,980

43,415

45,415

Stock Compensation

2,050

2,050

8,019

8,019

Loss on disposals of long-lived belongings

182

182

M&A – associated skilled charges

1,750

2,250

7,346

7,846

Adjusted EBITDA

$

23,780

$

26,280

$

58,962

$

61,462

 

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SOURCE American Public Education, Inc.