CHARLES TOWN, W.Va.,
Nov. 7, 2017 /PRNewswire/
-- American Public Education, Inc. (NASDAQ: APEI) – parent
company of online learning provider American Public University
System (APUS) and campus-based Hondros College of Nursing (HCN) –
announced financial results for the quarter ended September 30, 2017.
Selected Financial Data:
- Third quarter 2017 consolidated revenue decreased 0.7% to
$73.3 million, compared to
$73.8 million in the same period of
2016.
- Net income for the third quarter of 2017 increased to
$4.4 million, or $0.27 per diluted share, compared to net income
of $0.3 million, or $0.02 per diluted share, in the same period of
2016.
Registrations and Enrollment:
- Net course registrations at APUS decreased approximately 4% in
the third quarter of 2017, compared to the prior year period. Net
course registrations by returning students decreased approximately
4% year-over-year and net course registrations by new students
decreased approximately 5% year-over-year in the third quarter of
2017.1
- APUS student enrollment decreased 7% year-over-year to
approximately 84,700 students as of September 30, 2017.2
- For the three months ended September 30,
2017, new student enrollment at HCN increased by
approximately 58% year-over-year and total student enrollment
increased by 11% to approximately 1,790 students.3
Financial Results:
Total consolidated revenue for the third quarter of 2017
decreased 0.7% to $73.3 million,
compared to total revenue of $73.8
million in the third quarter of 2016. Consolidated
income from operations before interest income and income taxes in
the third quarter of 2017 was $7.6
million, compared to consolidated income from operations
before interest income and income taxes of $0.4 million in the third quarter of 2016. Net
income for the third quarter of 2017 was $4.4 million, or $0.27 per diluted share, compared to net income
of $0.3 million, or $0.02 per diluted share for the third quarter of
2016. The weighted average diluted shares outstanding for the third
quarters of 2017 and 2016 were approximately 16.4 million and 16.2
million, respectively.
For the nine months ended September 30,
2017, total consolidated revenue decreased 5.7% to
$221.2 million, compared to
$234.5 million in the prior year
period. Consolidated income from operations before interest
income and income taxes for the nine months ended September 30, 2017 was $22.2 million, compared to $27.0 million in the prior year period. Net
income for the nine months ended September
30, 2017 was $12.7 million, or
$0.78 per diluted share, compared to
net income of $17.3 million, or
$1.07 per diluted share in the prior
year period. The weighted average diluted shares outstanding for
the nine months ended September 30,
2017 and 2016 were approximately 16.4 million and 16.2
million, respectively.
Total cash and cash equivalents as of September 30, 2017 were approximately
$166.3 million, compared to
$146.4 million as of December 31, 2016. Capital expenditures were
approximately $6.5 million for the
nine months ended September 30, 2017,
compared to $9.7 million as of
September 30, 2016. Depreciation and
amortization was $14.2 million for
the nine months ended September 30,
2017, compared to $14.6
million as of September 30,
2016.
Registrations and Enrollment:
American Public
University System1
|
|
|
|
For the three months
ended September 30,
|
2017
|
2016
|
%
Change
|
Net Course
Registrations by New Students
|
11,700
|
12,300
|
-5%
|
Net Course
Registrations
|
81,000
|
84,600
|
-4%
|
|
|
|
|
For the nine months
ended September 30,
|
2017
|
2016
|
%
Change
|
Net Course
Registrations by New Students
|
31,800
|
35,400
|
-10%
|
Net Course
Registrations
|
244,700
|
262,400
|
-7%
|
|
|
|
|
As of September
30,
|
|
|
|
APUS Student
Enrollment2
|
84,700
|
91,000
|
-7%
|
|
|
|
|
Hondros College of
Nursing3
|
|
|
|
For the three months
ended September 30,
|
2017
|
2016
|
%
Change
|
New Student
Enrollment
|
500
|
320
|
+58%
|
Total Student
Enrollment
|
1,790
|
1,610
|
+11%
|
|
1APUS
Net Course Registrations represent the approximate aggregate
number of courses for which students remain enrolled after the date
by which they may drop a course without financial
penalty.
|
2APUS
Student Enrollment represents the number of unique
active students, including those who take an approved leave of
absence for up to two years, who have reached the eighth day of
their first course or who have completed at least one course within
the last 12 months for which a grade was received.
|
3HCN Student Enrollment
represents the total number of students enrolled in a course after
the date by which students may drop a course without financial
penalty.
|
Fourth Quarter 2017 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 unless required by
law.
American Public Education anticipates fourth quarter 2017
consolidated revenues to decrease between approximately 5% and 1%
year-over-year, compared to the fourth quarter of 2016. The Company
expects consolidated net income of between $0.29 and $0.34 per diluted share in the fourth
quarter of 2017.
American Public Education also expects the following results
from its subsidiaries in the fourth quarter of 2017:
- At American Public University System, net course registrations
by new students are expected to decrease between 12% and 8%
year-over-year and net course registrations are expected to
decrease between 8% and 4% year-over-year. 1
- At Hondros College of Nursing, new
student enrollment increased by approximately 29% year-over-year
and total student enrollment increased by approximately 23%
year-over-year for the three months ended December 31, 2017 (Fall 2017).3
Webcast:
A live webcast of the Company's third quarter 2017 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.apei.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 and National Education
Seminars Inc., which we refer to in this press release as
Hondros College of Nursing. Together, these institutions
serve more than 85,000 adult learners worldwide and offer more than
200 degree and certificate 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
www.apei.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, 2016, Quarterly Report on Form 10-Q
for the period ended September 30,
2017 and other filings with the SEC. The Company undertakes
no obligation to update publicly any forward-looking statements for
any reason, unless required by law, 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
|
|
|
September
30,
|
|
|
2017
|
|
|
2016
|
|
|
(Unaudited)
|
|
|
|
|
Revenues
|
$
|
73,279
|
|
|
$
|
73,803
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Instructional costs and services
|
|
28,723
|
|
|
|
28,357
|
|
Selling
and promotional
|
|
14,640
|
|
|
|
13,139
|
|
General
and administrative
|
|
17,237
|
|
|
|
17,125
|
|
Loss on
disposals of long-lived assets
|
|
390
|
|
|
|
5,145
|
|
Impairment of goodwill
|
|
—
|
|
|
|
4,735
|
|
Depreciation and amortization
|
|
4,690
|
|
|
|
4,910
|
|
Total costs and
expenses
|
|
65,680
|
|
|
|
73,411
|
|
|
|
|
|
|
|
|
|
Income from
operations before
|
|
|
|
|
|
|
|
interest
income and income taxes
|
|
7,599
|
|
|
|
392
|
|
Interest
income
|
|
17
|
|
|
|
37
|
|
Income before income
taxes
|
|
7,616
|
|
|
|
429
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
3,294
|
|
|
|
85
|
|
Equity
investment income (loss)
|
|
44
|
|
|
|
(18)
|
|
Net
income
|
$
|
4,366
|
|
|
$
|
326
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
Basic
|
$
|
0.27
|
|
|
$
|
0.02
|
|
Diluted
|
$
|
0.27
|
|
|
$
|
0.02
|
|
|
|
|
|
|
|
Weighted average
number of
|
|
|
|
|
|
|
|
common
shares:
|
|
|
|
|
|
|
|
Basic
|
|
16,249
|
|
|
|
16,075
|
|
Diluted
|
|
16,376
|
|
|
|
16,233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Segment
Information:
|
September
30,
|
|
|
2017
|
|
|
2016
|
|
Revenues:
|
|
|
|
|
|
|
|
American
Public Education, Inc.
|
$
|
64,885
|
|
|
$
|
67,065
|
|
Hondros
College of Nursing
|
$
|
8,394
|
|
|
$
|
6,738
|
|
Income (loss) from
continuing operations
|
|
|
|
|
|
|
|
before interest
income and income taxes:
|
|
|
|
|
|
|
|
American
Public Education, Inc.
|
$
|
6,855
|
|
|
$
|
5,659
|
|
Hondros
College of Nursing
|
$
|
744
|
|
|
$
|
(5,267)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
|
2017
|
|
|
2016
|
|
|
(Unaudited)
|
|
|
|
|
Revenues
|
$
|
221,163
|
|
|
$
|
234,514
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Instructional costs and services
|
|
87,513
|
|
|
|
86,968
|
|
Selling
and promotional
|
|
44,083
|
|
|
|
44,592
|
|
General
and administrative
|
|
51,625
|
|
|
|
50,703
|
|
Loss on
disposals of long-lived assets
|
|
1,558
|
|
|
|
5,870
|
|
Impairment of goodwill
|
|
—
|
|
|
|
4,735
|
|
Depreciation and amortization
|
|
14,160
|
|
|
|
14,624
|
|
Total costs and
expenses
|
|
198,939
|
|
|
|
207,492
|
|
|
|
|
|
|
|
|
|
Income from
operations before
|
|
|
|
|
|
|
|
interest
income and income taxes
|
|
22,224
|
|
|
|
27,022
|
|
Interest
income
|
|
43
|
|
|
|
111
|
|
Income before income
taxes
|
|
22,267
|
|
|
|
27,133
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
9,668
|
|
|
|
10,524
|
|
Equity
investment income
|
|
105
|
|
|
|
653
|
|
Net
income
|
$
|
12,704
|
|
|
$
|
17,262
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
Basic
|
$
|
0.78
|
|
|
$
|
1.07
|
|
Diluted
|
$
|
0.78
|
|
|
$
|
1.07
|
|
|
|
|
|
|
|
Weighted average
number of
|
|
|
|
|
|
|
|
common
shares:
|
|
|
|
|
|
|
|
Basic
|
|
16,226
|
|
|
|
16,058
|
|
Diluted
|
|
16,352
|
|
|
|
16,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
Segment
Information:
|
September
30,
|
|
|
2017
|
|
|
2016
|
|
Revenues:
|
|
|
|
|
|
|
|
American
Public Education, Inc.
|
$
|
197,318
|
|
|
$
|
212,859
|
|
Hondros
College of Nursing
|
$
|
23,845
|
|
|
$
|
21,655
|
|
Income (loss) from
continuing operations
|
|
|
|
|
|
|
|
before interest
income and income taxes:
|
|
|
|
|
|
|
|
American
Public Education, Inc.
|
$
|
20,445
|
|
|
$
|
31,211
|
|
Hondros
College of Nursing
|
$
|
1,779
|
|
|
$
|
(4,189)
|
|
View original
content:http://www.prnewswire.com/news-releases/american-public-education-reports-third-quarter-2017-results-300550881.html
SOURCE American Public Education, Inc.