Core Insights - American Public Education (APEI) reported revenue of $164.11 million for the quarter ended December 2024, reflecting a year-over-year increase of 7.4% and a surprise of +1.57% over the Zacks Consensus Estimate of $161.57 million [1] - The earnings per share (EPS) for the quarter was $0.63, slightly down from $0.64 in the same quarter last year, but exceeded the consensus EPS estimate of $0.54 by +16.67% [1] Revenue Performance by Segment - Hondros College, Nursing Programs (HCN) generated revenues of $18.94 million, which is a year-over-year increase of +20%, but fell short of the two-analyst average estimate of $19.16 million [4] - American Military & Public University (APUS) reported revenues of $82.36 million, surpassing the average estimate of $82.14 million, with a year-over-year change of +3.8% [4] - Rasmussen University (RU) achieved revenues of $57.49 million, exceeding the two-analyst average estimate of $55.05 million, representing a year-over-year increase of +9.4% [4] Stock Performance - Over the past month, shares of American Public Education have returned -9.4%, compared to a -3.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it may perform in line with the broader market in the near term [3]

Core Viewpoint - American Public Education (APEI) reported quarterly earnings of $0.63 per share, exceeding the Zacks Consensus Estimate of $0.54 per share, but slightly down from $0.64 per share a year ago, indicating a 16.67% earnings surprise [1][2] Financial Performance - The company achieved revenues of $164.11 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.57% and showing an increase from $152.8 million year-over-year [2] - Over the last four quarters, APEI has exceeded consensus EPS estimates three times and topped revenue estimates twice [2] Stock Performance and Outlook - APEI shares have declined approximately 6% since the beginning of the year, contrasting with the S&P 500's decline of 0.7% [3] - The future performance of APEI's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][5] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.31 on revenues of $161 million, and for the current fiscal year, it is $1.35 on revenues of $649.04 million [7] - The estimate revisions trend for APEI is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Schools industry, to which APEI belongs, is currently ranked in the top 15% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Afya (AFYA), is expected to report quarterly earnings of $0.36 per share, with revenues projected to be $140.53 million, down 4.6% from the previous year [9]

Enrollment and Student Retention - The company reported a significant increase in student enrollment, with a growth rate of 15% year-over-year, reaching a total of 50,000 enrolled students[7]. - The company anticipates challenges in attracting and retaining students, particularly among active-duty service members, which may adversely affect enrollments and revenue[22]. - The company is focusing on improving the learning experience and student outcomes to attract students likely to persist in their programs[14]. Financial Performance and Projections - Revenue for the fiscal year was $200 million, representing a 10% increase compared to the previous year[8]. - The company anticipates a 5% increase in revenue for the next fiscal year, driven by new program offerings and market expansion efforts[7]. - The debt service obligations are projected to be $15 million annually, which may impact cash flow management[8]. - The company has incurred substantial indebtedness, and the cost of servicing this debt may adversely affect financial results and operational flexibility[25]. Strategic Initiatives and Partnerships - The company plans to launch three new educational programs in the next quarter, aimed at meeting emerging market demands[7]. - A strategic partnership with a leading technology firm was established to enhance the company's online learning platform, expected to improve user engagement by 20%[8]. - The company is investing $10 million in technology infrastructure to support the integration of artificial intelligence in its educational services[8]. - The company is exploring new partnerships and relationships to support its initiatives and expand its market presence[14]. Operational Changes and Cost Management - A consolidation of campuses is planned, which is expected to reduce operational costs by 12%[7]. - The anticipated completion of the merger with Rasmussen University and Hondros College of Nursing is expected to create a consolidated institution with a broader program offering[7]. - The planned combination of American Public University System, Rasmussen University, and Hondros College of Nursing aims to consolidate operations and enhance program offerings[14]. Regulatory and Compliance Challenges - The company has faced regulatory challenges, particularly related to the "90/10 Rule," which could affect eligibility for federal student financial aid programs[8]. - Compliance with the "90/10 Rule" is critical; failure to meet this requirement for two consecutive years could result in loss of eligibility for federal student financial aid programs[25]. - Legislative and regulatory changes, including actions by the U.S. Department of Education, could significantly impact the company's operations and financial condition[14]. Technology and Cybersecurity - The integration of technology infrastructure, including the use of artificial intelligence, is essential for maintaining competitiveness and enhancing student support[14]. - The company faces risks related to cybersecurity incidents that could compromise sensitive information and damage its reputation[26]. Competitive Environment - The competitive environment in the education market may decrease market share and increase costs associated with student acquisition[22].

Financial Performance - Consolidated revenue for Q4 2024 increased 7.4% year-over-year to $164.1 million[4] - Net income available to common stockholders in Q4 2024 was $11.5 million, consistent with Q4 2023[4] - Adjusted EBITDA for Q4 2024 was $31.4 million, up from $25.7 million in Q4 2023, representing a growth of 22.1%[4] - Revenue for the three months ended December 31, 2024, increased to $164,110,000 from $152,804,000, representing a growth of 8.5% year-over-year[28] - Net income available to common stockholders for the three months ended December 31, 2024, was $11,505,000, slightly up from $11,475,000 in the same period last year[30] - Adjusted EBITDA for the three months ended December 31, 2024, was $31,393,000, compared to $25,690,000 for the same period in 2023, reflecting a year-over-year increase of 22.9%[30] - For the twelve months ended December 31, 2024, total revenue reached $624,559,000, up from $600,545,000, marking a 4.0% increase[29] - The company reported a net income of $16,113,000 for the twelve months ended December 31, 2024, compared to a net loss of $47,286,000 in the previous year[29] Guidance and Projections - Full year 2025 revenue guidance is set between $650 million and $660 million, reflecting a 4% to 6% year-over-year growth[10] - Full year 2025 Adjusted EBITDA guidance is between $75 million and $85 million, indicating a 4% to 18% increase[10] - The company expects net income available to common stockholders for the three months ending March 31, 2025, to be between $1,696,000 and $3,096,000[31] - The outlook for adjusted EBITDA for the twelve months ending December 31, 2025, is projected to be between $75,000,000 and $85,000,000[31] Costs and Expenses - Total costs and expenses for Q4 2024 were $142.6 million, an increase of 4.2% compared to Q4 2023[7] - General and administrative expenses for Q4 2024 increased by 15.6% to $36.2 million compared to Q4 2023[7] - The total costs and expenses for the twelve months ended December 31, 2024, decreased to $591,493,000 from $648,851,000, a reduction of 8.8%[29] Enrollment and Segments - Q1 2025 enrollments at Rasmussen increased to 14,500, a 6.8% increase compared to Q1 2024[4] - The APUS Segment generated revenue of $82,364,000 for the three months ended December 31, 2024, compared to $79,362,000 in the prior year, indicating a growth of 3.8%[28] - The RU Segment reported a revenue increase to $57,489,000 for the three months ended December 31, 2024, from $52,575,000, which is a growth of 9.1%[28] Strategic Initiatives - The company plans to simplify and strengthen its military and healthcare divisions by closing underperforming campuses and terminating long-term contracts[3] Cash Position - Total cash, cash equivalents, and restricted cash were $158.9 million at December 31, 2024, a 10.1% increase from $144.3 million at December 31, 2023[6]

Core Insights - American Public Education, Inc. (APEI) reported strong financial results for Q4 2024, with net income and adjusted EBITDA exceeding guidance, driven by improvements in its APUS, Rasmussen, and Hondros College of Nursing segments [1][3][5] Financial Performance - Consolidated revenue for Q4 2024 increased by 7.4% year-over-year to $164.1 million, up from $152.8 million in Q4 2023 [5][6] - Net income available to common stockholders for Q4 2024 was $11.5 million, consistent with Q4 2023 [5][6] - Adjusted EBITDA for Q4 2024 was $31.4 million, compared to $25.7 million in Q4 2023, reflecting a significant year-over-year increase [5][7] Enrollment and Registrations - Q1 2025 enrollments at Rasmussen University increased to 14,500, representing a 6.8% increase compared to Q1 2024 [5] - For Q4 2024, net course registrations at APUS rose to 97,100, a 7.1% increase from 90,700 in Q4 2023 [9] Guidance and Outlook - APEI established guidance for full year 2025 revenue in the range of $650 million to $660 million, with adjusted EBITDA expected between $75 million and $85 million [5][10] - The company anticipates a net income available to common stockholders for 2025 between $19 million and $26 million, indicating a substantial year-over-year growth of 89% to 159% [10] Cost and Expense Analysis - Total costs and expenses for Q4 2024 were $142.6 million, an increase of 4.2% compared to $136.9 million in Q4 2023, primarily due to higher employee compensation and IT costs [6][5] - General and administrative expenses rose by 15.6% to $36.2 million, driven by increased IT costs and bad debt expense [6][5] Balance Sheet and Liquidity - Total cash, cash equivalents, and restricted cash increased to $158.9 million at December 31, 2024, up from $144.3 million a year earlier, marking a 10.1% increase [8]

Core Insights - American Public University System (APUS) has partnered with the Business-Higher Education Forum (BHEF) to address talent gaps in the digital economy, emphasizing the importance of high-quality education for workforce development [1][2][3] Group 1: Partnership and Goals - APUS aims to strengthen the digital workforce through relevant higher education, collaborating with BHEF to enhance educational programs that meet strategic business needs [2][3] - BHEF focuses on creating scalable changes in collaboration with higher education and business leaders to develop a skilled workforce that supports economic growth [3][7] Group 2: Programs and Initiatives - APUS has established partnerships with over 300 organizations to create effective programs that help retain, recruit, and upskill employees, with 92% of its students being working adults [4][8] - The TuitionWise program, launched in summer 2024, offers potential no out-of-pocket tuition costs for employees at companies providing education assistance benefits, facilitating access to higher education [5][6][10] Group 3: Impact and Recognition - BHEF has impacted over 200,000 workers and learners through its partnerships, resulting in the development of numerous new pathways and programs for students [7] - APUS is recognized for its innovative online learning approach and ranks in the top 11% for students' return on educational investment among 4,500 colleges and universities [8][11]

Core Viewpoint - American Public Education, Inc. (APEI) is expected to report its fourth-quarter 2024 results on March 6, with a focus on revenue growth and enrollment trends across its segments [1]. Financial Performance - In the last reported quarter, APEI's earnings per share (EPS) exceeded the Zacks Consensus Estimate by 300%, while revenues fell short by 0.3%. Year-over-year, revenues increased by 1.5% and EPS rose by 100% [2]. - The Zacks Consensus Estimate for the fourth-quarter EPS is stable at 54 cents, indicating a 15.6% decrease from the previous year's EPS of 64 cents. Revenue estimates are pegged at $161.6 million, suggesting a 5.7% year-over-year rise [3]. Enrollment and Revenue Growth - APEI's fourth-quarter revenues are anticipated to increase due to strong performance across all segments, particularly in the American Public University System (APUS) and Hondros College of Nursing (HCN) [4]. - APUS is expected to see total net course registrations grow by 4% to 6%, driven by military-affiliated programs. HCN's enrollment is projected to rise by 19% to 3,700 students, while Rasmussen University (RU) is expected to have a 4% increase in student enrollment to 14,600 [6]. Segment Revenue Expectations - For the fourth quarter, revenues in the APUS and HCN segments are expected to increase by 2.8% to $81.6 million and by 20.6% to $19 million, respectively. RU segment revenues are predicted to grow by 5.4% to $55.4 million [7]. Margin and Income Projections - APEI is expected to report net income between $9 million and $11 million, down from $11.5 million a year ago, translating to EPS between 47 cents and 56 cents [9]. - Adjusted EBITDA is projected to be between $23 million and $26 million, compared to $25.7 million a year ago, with adjusted EBITDA margins expected to decline by 70 basis points to 16.1% [9]. Earnings Prediction Model - The current model does not predict a definitive earnings beat for APEI, as the Earnings ESP stands at 0.00% and the company holds a Zacks Rank of 3 (Hold) [10][11].

Core Insights - American Public Education (APEI) is expected to report quarterly earnings of $0.54 per share, reflecting a year-over-year decline of 15.6% [1] - Revenue is anticipated to reach $161.57 million, indicating a 5.7% increase compared to the same quarter last year [1] Earnings Projections - The consensus EPS estimate for the quarter has remained unchanged over the past 30 days, indicating analysts' reassessment of their initial projections [2] - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3] Revenue Estimates by Segment - Analysts predict that revenues from Rasmussen University (RU) will be $55.05 million, reflecting a year-over-year change of +4.7% [5] - Revenues from Hondros College, Nursing Programs (HCN) are expected to be $19.16 million, indicating a +21.4% change from the prior-year quarter [5] - The consensus for revenues from American Military & Public University (APUS) is $82.14 million, showing a +3.5% change from the previous year [5] Stock Performance - Over the past month, APEI shares have recorded a return of -4.6%, compared to a -1.3% change in the Zacks S&P 500 composite [6] - APEI holds a Zacks Rank 3 (Hold), suggesting that its performance is likely to align with the overall market in the near term [6]

Core Insights - American Public University System (APUS) has made significant advancements in academic research, securing grants for 19 projects across three continents in 2024, emphasizing its commitment to academic excellence and cross-cultural research [1][2][8] Research Initiatives - Approximately 50 students participated in faculty-led research activities in 2024, showcasing APUS's dedication to experiential learning through fully funded competitive faculty research grants [2][8] - Notable research projects include: - Dr. Daniel Diaz's ethnographic study on Nahuatl-speaking communities in Mexico, focusing on preserving Indigenous linguistic diversity [3] - WaterTAP project by Dr. Kelly Chinners Reiss and Dr. Daniela Messina, which distributed over 700 water testing kits to address drinking water quality and public health [4] - Dr. Melissa Schnyder's research on Indigenous food sovereignty through the restoration of traditional Hawaiian fishponds [5] - The student-led Analog Research Group (AARG) completed its fifth analog mission to study plant growth in regolith and other factors [6] - Research in Kodiak, Alaska, by Dr. Kristin Drexler and team, documenting Indigenous communities' experiences during the COVID-19 pandemic [7] Institutional Commitment - APUS aims to foster ongoing research that bridges disciplines, cultures, and borders, continuing to expand opportunities for faculty-led student research globally [8] - The university has a rich history of over 33 years and a community of more than 149,000 alumni from over 80 countries, recognized for its innovative online learning approach [9][10]

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][9] 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 are accredited by the Higher Learning Commission (HLC), while Hondros 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 March 6, 2025, at 5:00 PM Eastern Time to discuss its financial results for the fourth quarter and year ended December 31, 2024 [1][2]