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APEI Q1 Earnings & Revenues Beat Estimates, Both Up Y/Y, Stock Gains
APEIAmerican Public Education(APEI) ZACKS·2025-05-13 17:10

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 164.6million,exceedingtheconsensusmarkof164.6 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 152.3million,drivenbya3.5152.3 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 83.9million,a4.183.9 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 59.3million,attributedtoenrollmentgrowthandtuitionhikes,withtotalstudentenrollmentincreasing7.459.3 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 3.7million,withanegativeEBITDAmarginof573.7 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 158.9millionattheendof2024[11]−Netlong−termdebtslightlyincreasedto158.9 million at the end of 2024 [11] - Net long-term debt slightly increased to 93.7 million from 93.4millionattheendof2024[11]GuidanceandOutlook−ForQ22025,APEIexpectstotalrevenuestoincreaseby4−593.4 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 160-162million,withaprojectedlosspersharebetween13centsandfourcents[12]−AdjustedEBITDAforQ2isanticipatedtobebetween162 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 14million,reflectingyear−over−yeargrowthof614 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 650-660million,withadjustedEBITDAprojectedbetween660 million, with adjusted EBITDA projected between 77 million and $87 million [14]