Core Insights - American Public Education, Inc. (APEI) reported strong first-quarter 2025 results, with adjusted earnings and total revenues exceeding expectations and showing year-over-year growth [1][2] - The performance was primarily driven by contributions from Rasmussen University (RU), American Public University System (APUS), and Hondros College of Nursing (HCN), while the Graduate School (GSUSA) segment experienced a revenue decline [1][2] Financial Performance - APEI's adjusted earnings per share (EPS) reached 41 cents, significantly surpassing the Zacks Consensus Estimate of 15 cents by 173.3%, compared to a loss of six cents per share in the same quarter last year [3] - Total revenues amounted to $164.6 million, exceeding the consensus mark of $162 million by 1.6% and growing 6.6% year over year, supported by net course registration growth and tuition increases [4] - Total costs and expenses rose 2% year over year to $152.3 million, driven by a 3.5% increase in instructional costs and an 8.5% rise in selling and promotional expenses [4] - Adjusted EBITDA increased by 24% year over year to $21.2 million, with an adjusted EBITDA margin of 13%, expanding 200 basis points from 11% [5] Segment Performance - APUS reported revenues of $83.9 million, a 4.1% increase from $80.7 million year over year, driven by net course registrations and tuition increases [6] - RU's revenues grew 11.5% year over year to $59.3 million, attributed to enrollment growth and tuition hikes, with total student enrollment increasing 7.4% to 14,500 [7][8] - HCN's revenues rose 7.5% year over year to $17.7 million, supported by student enrollment growth, although it reported a negative EBITDA margin of 1% [8][9] - GSUSA's revenues declined 11.9% year over year to $3.7 million, with a negative EBITDA margin of 57% [10] Cash and Debt Position - As of March 31, 2025, APEI had cash, cash equivalents, and restricted cash of $187.5 million, up from $158.9 million at the end of 2024 [11] - Net long-term debt slightly increased to $93.7 million from $93.4 million at the end of 2024 [11] Guidance and Outlook - For Q2 2025, APEI expects total revenues to increase by 4-5% year over year to $160-$162 million, with a projected loss per share between 13 cents and four cents [12] - Adjusted EBITDA for Q2 is anticipated to be between $11.5 million and $14 million, reflecting year-over-year growth of 6% to 28% [12] - The company revised its 2025 guidance, expecting total revenues to grow 4-6% year over year to $650-$660 million, with adjusted EBITDA projected between $77 million and $87 million [14]

Financial Performance - For the quarter ended March 2025, American Public Education (APEI) reported revenue of $164.55 million, up 6.6% year-over-year [1] - EPS for the quarter was $0.41, a significant improvement from -$0.06 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $161.94 million, resulting in a surprise of +1.61% [1] - The company delivered an EPS surprise of +173.33%, with the consensus EPS estimate being $0.15 [1] Key Metrics - Shares of American Public Education have returned +16.9% over the past month, outperforming the Zacks S&P 500 composite's +3.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3] Segment Performance - Rasmussen University (RU) reported revenues of $59.25 million, exceeding the average estimate of $57.19 million, representing a year-over-year change of +11.5% [4] - Hondros College, Nursing Programs (HCN) generated revenues of $17.68 million, slightly below the average estimate of $18.07 million, with a year-over-year change of +7.5% [4] - American Military & Public University (APUS) reported revenues of $83.95 million, surpassing the average estimate of $82.42 million, reflecting a year-over-year change of +4.1% [4]

Financial Data and Key Metrics Changes - The company reported total revenue of $164.6 million, an increase of 6.6% year-over-year, driven by growth at Rasmussen, APUS, and Hondros [16][18] - Adjusted EBITDA for the first quarter was $21.2 million, a 25% increase from the prior year, with an adjusted EBITDA margin of 12.9%, up from 11% [17][18] - Net income available to common shareholders was $7.5 million, compared to a net loss of $1 million in the prior year [17][20] - The company raised its full-year adjusted EBITDA guidance by $2 million to a range of $77 million to $87 million [5][9] Business Line Data and Key Metrics Changes - Rasmussen experienced a positive adjusted EBITDA swing from a loss of $2.6 million in Q1 2024 to a profit of $2.4 million in Q1 2025, with revenue increasing by 11.5% to $59.3 million [6][18] - APUS reported revenue of $83.9 million, a 4.1% increase, with net course registrations up 3.5% year-over-year [18][20] - Hondros saw revenue growth of 7.5% to $17.7 million, with total enrollment increasing by 10% [19][20] Market Data and Key Metrics Changes - The company noted an 8% year-over-year enrollment improvement at Rasmussen for Q2 2025, continuing a trend of positive enrollment growth [6][10] - At Hondros, enrollment increased by 13.5% year-over-year for Q2 2025 [10][23] - APUS conferred over 13,500 associate's or bachelor's degrees, with 66% of graduates being active duty military or veterans [12] Company Strategy and Development Direction - The company is focused on simplifying operations and plans to consolidate its three degree-granting institutions into a single entity by the end of 2025 [8][25] - The strategy includes optimizing program offerings and expanding nursing programs to meet growing demand in healthcare [25] - The company aims to redeem its preferred shares, which will save approximately $6 million in annual dividend expenses starting in 2026 [7][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth prospects, citing strong enrollment trends and improved profitability [13][25] - The company acknowledged challenges in the Graduate School segment due to government budget uncertainties but maintained overall revenue guidance [9][24] - Management highlighted the effectiveness of marketing initiatives and the resilience of military and healthcare education sectors [52][53] Other Important Information - The company plans to sell two corporate buildings with anticipated net proceeds of over $20 million, expected to close in Q3 2025 [8][21] - Cash flow from operations was $37 million, significantly up from $20.7 million in the prior year [20] Q&A Session Summary Question: Impact of tuition assistance portal downtime on margins and enrollments - Management indicated that the impact was minimal, with registrations increasing by 3.5% in Q1 and guidance for 5.5% in Q2 [27][30] Question: Guidance for Graduate School EBITDA losses - Management stated that they cannot provide specific guidance on Graduate School losses but are confident in the overall adjusted EBITDA guidance [32][34] Question: Enrollment growth expectations for Rasmussen - Management noted that they do not provide individual institution guidance but are pleased with the momentum at Rasmussen [39][40] Question: Revenue synergies from consolidation - Management has not provided specific revenue synergy numbers but highlighted the benefits of combining nursing programs across institutions [82][83] Question: Interest expense in Q2 - Management confirmed that the higher interest expense includes the preferred redemption premium [88] Question: Fixed versus variable costs at Rasmussen - Management indicated a 60% flow-through of revenue increases to EBITDA, with potential for higher flow-through as optimization continues [96]

1Q 2025 Earnings Presentation May 2025 You should not place undue reliance on any forward-looking statements. 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. 2 1Q25 Executive Summary APEI is a market leader in the post-secondary education of active-duty military, veterans, new nurses, and health professionals, segments that have demonstrated stable and ...

Student Enrollment and Services - The company serves approximately 106,400 students and provides career learning to about 23,000 individuals through its four subsidiary institutions[110]. - As of March 31, 2025, approximately 64% of APUS students self-reported military service at the time of enrollment[116]. - Rasmussen University has approximately 14,500 students, with 90% of nursing students enrolled in pre-licensure programs[116]. - The planned combination of APUS, Rasmussen University, and Hondros College of Nursing is expected to be completed in Q3 2025, pending necessary approvals[112]. Financial Performance - Consolidated revenue for the three months ended March 31, 2025, increased to $164.6 million, a rise of 6.6% from $154.4 million in the prior year period[141]. - Net income for the same period was $8.9 million, compared to $0.5 million in the prior year, marking an increase of $8.4 million[141]. - Total revenue for the three months ended March 31, 2025, was $164.6 million, an increase of $10.1 million, or 6.5%, compared to $154.4 million in the prior year[155]. - Net income increased to $8.9 million for the three months ended March 31, 2025, compared to $0.5 million in the prior year, an increase of $8.4 million[153]. Enrollment Growth - APUS net course registrations rose to approximately 102,500, an increase of 3,500 or 3.5% compared to the prior year[124]. - RU total enrollment increased to approximately 14,500, up 1,000 or 7.4% year-over-year, with revenue rising to $59.3 million, an increase of 11.5%[125]. - HCN total enrollment grew to approximately 3,600, an increase of 300 or 9.6%, with revenue increasing to $17.7 million, up 7.5%[126]. Operating Margins and Expenses - Operating margin improved to 7.4% for the three months ended March 31, 2025, compared to 3.4% in the prior year[123]. - Costs and expenses for the three months ended March 31, 2025, were $152.3 million, an increase of 2.0% from $149.3 million in the prior year[142]. - Instructional costs and services expenses increased by $2.5 million, or 3.5%, to $74.9 million for the three months ended March 31, 2025, with a decrease in these expenses as a percentage of revenue to 45.5% from 46.9%[144]. - Selling and promotional expenses rose by $2.7 million, or 8.5%, to $35.2 million, with these expenses as a percentage of revenue increasing to 21.4% from 21.0%[145]. - General and administrative expenses were $36.4 million, a slight increase of $0.1 million, or 0.4%, with a decrease in these expenses as a percentage of revenue to 22.1% from 23.5%[146]. Cash Flow and Investments - Cash and cash equivalents increased by $28.6 million, or 18.0%, to $187.5 million as of March 31, 2025, primarily due to the collection of accounts receivable[159]. - For the three months ended March 31, 2025, net cash provided by operating activities was $37.0 million, an increase from $20.7 million in the same period of 2024, primarily due to improved collections[166]. - Net cash used in investing activities was $3.4 million for the three months ended March 31, 2025, down from $6.2 million in the same period of 2024, with capital expenditures of $3.9 million compared to $6.2 million in 2024[167]. - Net cash used in financing activities was $5.0 million for the three months ended March 31, 2025, a decrease from $5.7 million in 2024, primarily due to reduced stock repurchases[168]. Regulatory and Compliance Issues - New Florida legislation may impose additional regulatory scrutiny on Rasmussen University's nursing programs, potentially increasing compliance costs[114]. - The company must comply with the 90/10 Rule and maintain accreditation to continue participating in Title IV financial aid programs[111]. - The company anticipates that the HLC will vote to remove retention reporting requirements for affected HCN programs in July 2025[117]. - The company is exploring strategic alternatives for Graduate School USA due to uncertainties in federal government training priorities[118]. Financial Instruments and Risk Management - The company has entered into a new interest rate cap agreement with a notional value of $50.0 million, providing protection if the Term SOFR rate exceeds 5.00%, expiring in June 2026[173]. - The company has no material derivative financial instruments as of March 31, 2025, and maintains cash and cash equivalents in secure accounts, with no significant credit risk exposure[170]. - A 10% change in interest rates would not materially impact the fair value of the company's investment portfolio due to its low yield and risk profile[171]. - The company incurred approximately $1.0 million in professional fees related to the Combination announced on January 28, 2025, with an expected additional $2.0 million to $4.0 million in fees for the remainder of 2025[165].

Financial Performance - Total consolidated revenue for Q1 2025 was $164.6 million, an increase of $10.1 million, or 6.6%, compared to Q1 2024[4] - Net income available to common stockholders in Q1 2025 was $7.5 million, compared to a net loss of ($1.0) million in Q1 2024[5] - Adjusted EBITDA for Q1 2025 was $21.2 million, up from $17.1 million in Q1 2024[5] - Total revenue for the three months ended March 31, 2025, was $164,551,000, representing an increase of 6.4% compared to $154,432,000 in the same period of 2024[30] - Net income available to common stockholders for Q1 2025 was $7,461,000, a significant improvement from a net loss of $1,019,000 in Q1 2024[30] - Adjusted EBITDA for the three months ended March 31, 2025, was $21,247,000, up from $17,057,000 in the same period of 2024, reflecting a growth of 24.3%[31] Enrollment and Registrations - APUS net course registrations for Q1 2025 were 102,500, a 3.5% increase from 99,000 in Q1 2024[8] - Rasmussen University total student enrollment increased to 14,500, a rise of 7.4% from 13,500 in Q1 2024[8] - Hondros College of Nursing total student enrollment rose to 3,600, reflecting a 9.6% increase from 3,300 in Q1 2024[8] Guidance and Projections - Full year 2025 net income guidance increased to a range of $23 million to $30 million, representing a year-over-year increase of 129% to 198%[11] - Full year 2025 revenue estimates remain unchanged at between $650 million and $660 million[5] - Second quarter 2025 guidance for consolidated revenue is projected to be between $160.0 million and $162.0 million, reflecting a year-over-year increase of 4% to 5%[11] - The company expects a net income range of $(2,461,000) to $(711,000) for the three months ending June 30, 2025, with an adjusted EBITDA forecast of $11,500,000 to $14,000,000[32] Assets and Liabilities - Total cash, cash equivalents, and restricted cash increased to $187.5 million at March 31, 2025, representing an increase of $28.6 million, or 18.0%[6] - Total assets as of March 31, 2025, were $578,661,000, compared to $570,103,000 as of December 31, 2024, indicating a growth of 1.0%[28] - Total liabilities increased to $268,649,000 as of March 31, 2025, from $266,224,000 as of December 31, 2024[28] Earnings Per Share and Deficit - The company reported a basic income per common share of $0.42 for Q1 2025, compared to a loss of $0.06 per share in Q1 2024[30] - The company’s accumulated deficit improved to $(34,344,000) as of March 31, 2025, from $(41,805,000) as of December 31, 2024[28] Segment Performance - The APUS segment generated revenue of $83,946,000 in Q1 2025, an increase of 4.5% from $80,656,000 in Q1 2024[30] - The RU segment reported revenue of $59,251,000 for Q1 2025, up 11.9% from $53,135,000 in Q1 2024[30]

Core Viewpoint - American Public Education, Inc. (APEI) is expected to report first-quarter 2025 results on May 12, with positive trends in enrollment and revenue growth anticipated despite some pressure on margins [1][3][7]. Revenue and Enrollment - APEI's first-quarter revenues are projected to increase by 4-6% year over year, reaching between $161 million and $163 million [4]. - The Zacks Consensus Estimate for first-quarter revenues is set at $161.9 million, indicating a 4.9% year-over-year rise [2]. - Strong enrollment growth is expected across all segments, particularly in the American Public University System (APUS), which accounted for 50.8% of total revenues in the previous quarter, and the Hondros College of Nursing (HCN) segment, which accounted for 10.8% [3][5]. Segment Performance - APUS is expected to have net course registrations between 100,500 and 102,000, reflecting a growth of 1.5-3% year over year [5]. - HCN's total enrollment is anticipated to increase by 10% to 3,600 students, while Rasmussen University (RU) is expected to see a 7% increase in enrollment to 14,500 students [5]. - Revenue growth predictions for APUS and HCN segments are 2.1% to $82.3 million and 9.5% to $18 million, respectively, while RU's revenue is expected to grow by 7.9% to $57.3 million [6]. Earnings and Margins - APEI expects net income to be between $1.7 million and $3.1 million, compared to a loss of $1 million a year ago [7]. - Adjusted EPS is anticipated to be between 9 cents and 17 cents, improving from a loss of 6 cents reported in the previous year [7]. - Adjusted EBITDA is projected to be between $13.5 million and $15.5 million, reflecting a decline of 21-9% year over year, with adjusted EBITDA margins expected to decrease by 170 basis points to 9.3% [7][8].

Core Insights - American Public Education (APEI) is expected to report quarterly earnings of $0.15 per share, a significant increase of 350% year-over-year [1] - Forecasted revenues for APEI are $161.94 million, reflecting a year-over-year increase of 4.9% [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' projections [1] Revenue Projections - Revenues for Rasmussen University (RU) are projected to be $57.19 million, representing a year-over-year increase of 7.6% [4] - Revenues for Hondros College, Nursing Programs (HCN) are estimated at $18.07 million, indicating a year-over-year increase of 9.9% [4] - Revenues for American Military & Public University (APUS) are forecasted to reach $82.42 million, reflecting a year-over-year change of 2.2% [5] Market Performance - APEI shares have increased by 5.6% over the past month, compared to a 11.3% increase in the Zacks S&P 500 composite [6] - APEI holds a Zacks Rank of 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [6]

Company Overview - American Public Education, Inc. (APEI) is a leading education services provider offering innovative and affordable educational programs through its subsidiaries [3][4]. - The company serves approximately 88,000 adult learners worldwide, primarily focusing on active-duty military and veteran students [4]. Subsidiaries and Services - American Public University System (APUS) operates through American Military University and American Public University, catering to military and veteran students [4]. - Rasmussen University, with a history of 125 years, serves around 13,500 students across 20 campuses and online, focusing on nursing and health sciences [5]. - Hondros College of Nursing is the largest educator of Practical Nursing (LPN) nurses in Ohio, serving approximately 3,100 students across eight campuses [6]. - Graduate School USA provides training to the federal workforce, offering customized contract training and open enrollment programs [7]. Accreditation - APUS and Rasmussen University are accredited by the Higher Learning Commission (HLC), while Hondros College is accredited by the Accrediting Bureau of Health Education Schools (ABHES) [8]. - Graduate School USA is accredited by the Accrediting Council for Continuing Education & Training (ACCET) [8]. Upcoming Financial Results - APEI will hold a conference call on May 12, 2025, at 5:00 PM Eastern Time to discuss its financial results for the first quarter ended March 31, 2025 [1][2]. - Financial results will be released in a press release prior to the call [1].

Core Perspective - Rasmussen University is celebrating its 125th anniversary in 2025, highlighting its legacy of transforming lives and strengthening communities through career-focused education [1][4][10] Company Overview - Founded in 1900 by Walter Rasmussen, the institution began as the Rasmussen Practical School of Business in St. Paul, Minnesota, addressing the need for skilled professionals [5] - Over the years, Rasmussen University has expanded its offerings to include more than 60 undergraduate and graduate programs across eight areas of study, with a strong emphasis on nursing education [7][11] Legacy and Impact - The university has a long-standing commitment to expanding access to education, particularly for underrepresented and underserved populations, and has pioneered online learning to meet workforce needs [6][10] - Rasmussen University emphasizes the belief that education creates opportunities, empowering generations of learners to make a lasting impact on their communities [5][6] Anniversary Activities - Throughout 2025, Rasmussen will host various activities and initiatives to celebrate its legacy, including campus celebrations, a traveling Green Couch series for engaging conversations, and research studies focused on legacy and future skills [9][12] - The university will also launch targeted campaigns in key communities to raise awareness of its anniversary and legacy through multi-platform messaging and social media engagement [9][12]