American Public Education, Inc. · NASDAQ:APEI
American Public Education — Q4 2023 Earnings Presentation
20 slides from American Public Education's earnings presentation, Mar 5, 2024
Slide 1: American Public Education, Inc. Fourth Quarter 2023 Results
American Public Education, Inc. Fourth Quarter 2023 Results March 5, 2024 PRESENTED BY AngelaSelden President andCEO Richard Sunderland,CPA Executive VPand CFO
Slide 2: Forward Looking Statements
Forward Looking Statements Statements made in this presentation regarding American Public Education, Inc. or its subsidiaries (“APEI” or the “Company”) that are not historical facts are forward-looking statements based on current expectations, assumptions, estimates and projections about APEI and th
Slide 3: 4Q23 & APEI Executive Summary
4Q23 & APEI Executive Summary Key Take-Aways 1Q24 Guidance Summary 1Q 2024 ▪ APEI Revenue: $152.8 million – exceeding high end of fourth quarter guidance and ($ in millions) second consecutive quarter of year-over-year growth Revenue $151.0 to $153.0 ▪ Net income available to common stockholders: $1
Slide 4: Education Unit Updates
Education Unit Updates
Slide 5: APUS Summary
APUS Summary Guidance Guidance Period Period Mid-point Mid-point ❖ Net course registrations grew +4.1% in 4Q23 vs. 4Q22 ❖ Continued enrollment growth driven by military (+5%) and veteran students (+12.8%), partially offset by decreases in non-military (-15%) ❖ Continued margin expansion due to highe
Slide 6: Hondros Summary
Hondros Summary ❖ 16 consecutive quarters of yr/yr enrollment growth ❖ Positive 4Q23 EBITDA of $1.1MM driven by strong enrollment, modest ❖ Strong growth and contribution from new campuses in Detroit and tuition increase earlier in 2023 and stabilization of costs Indianapolis ❖ Expenses related to c
Slide 7: Rasmussen Summary
Rasmussen Summary ❖ Continued strong growth in BSN enrollments and other on-ground ❖ Full quarter of cost savings helped produce positive EBITDA in 4Q23 healthcare programs offset by continued declines in ADN program ❖ Overall enrollment growth continues to improve ❖ Voluntarily closing the Blooming
Slide 8: Financial Results
Financial Results
Slide 9: Revenue Summary by Education Unit
Revenue Summary by Education Unit APEI Revenue % % ($ in millions) 4Q22 4Q23 Change ($ in millions) FY22 FY23 Change $73.4 $79.4 8% $285.1 $303.3 6% $60.7 $52.6 -13% $253.3 $214.1 -15% $12.6 $15.8 25% $47.1 $56.9 21% 1 1 $5.7 $5.1 -11% $20.9 $26.2 26% $152.4 $152.8 0% $606.3 $600.5 -1% ➢ Strong quar
Slide 10: Education Unit Operating Income and Margin Profile
Education Unit Operating Income and Margin Profile Operating Income ($ in millions) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 APUS $ 13.2 $ 13.6 $ 12.5 $ 19.1 $ 17.1 $ 18.9 $ 21.9 $ 26.5 Margin 18% 19% 18% 26% 23% 26% 29% 33% 1 Rasmussen $ 0.9 $ (146.6) $ (7.9) $ (13.0) $ (12.9) $ (77.3) $ (10.6) $ (2
Slide 11: Education Unit EBITDA and Margin Profile
Education Unit EBITDA and Margin Profile Segment Summary ($ in millions) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 Revenue $73.1 $69.9 $68.7 $73.4 $74.0 $73.6 $76.4 $ 79.4 APUS EBITDA $14.9 $15.2 $14.1 $20.6 $18.5 $20.2 $23.3 $ 27.7 Continued margin growth to 35% Margin 20% 22% 21% 28% 25% 28% 30% 35%
Slide 12: Capitalization & Liquidity
Capitalization & Liquidity ($ in millions) 12/31/2022 12/31/2023 Cash $ 129 $ 144 (-) Restricted cash (27) (28) ($ in millions) Unrestricted cash $ 103 $ 117 Annualized Outstanding Annualized (1) Financing Costs Amount Rate Term Loan (principal) $ 99 $ 99 Revolver, drawn - - Interest expense $ 9.6 $
Slide 13: APEI's 1Q24 Outlook
APEI’s 1Q24 Outlook These statements are based on current expectations. These statements are forward-looking and actual results may differ materially. (1) APUS Net course registrations represent the approximate aggregate number of courses for which students remain enrolled after the date by which th
Slide 14: Recent Achievements
Recent Achievements 2024 Institution of the Year Record Nursing Enrollment Top 11% on ROI AMU Recognized by Council of College Hondros, 1Q2024 APUS Ranked by Georgetown University and Military Educators (CCME) Center on Education and Workforce 90% (26 of 29 Programs) 100% (All PN/RN Programs) of on-
Slide 15: Thank You
Thank You
Slide 16: Rasmussen Enrollment – New Reporting Presentation
Rasmussen Enrollment – New Reporting Presentation New Presentation 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 On Ground Healthcare 9,100 8,800 8,200 8,100 7,100 6,800 6,400 6,500 On-line 7,100 7,100 6,800 7,500 7,200 7,100 7,100 7,600 16,200 15,900 15,000 15,600 14,300 13,900 13,500 14,100 Historical P
Slide 17: Education Unit Overview – Operating Income to EBITDA Reconciliation
Education Unit Overview – Operating Income to EBITDA Reconciliation APEI Revenue Full Year Full Year ($ in millions) 1Q22 2Q22 3Q22 4Q22 2022 1Q23 2Q23 3Q23 4Q23 2023 Revenue 73.1 69.9 68.7 73.4 285.1 74.0 73.6 76.4 79.4 303.3 Operating Income (1) 13.2 13.6 12.5 19.1 58.5 17.1 18.9 21.9 26.5 84.4 (+
Slide 18: 4Q23 Enrollment and Registration Summary
4Q23 Enrollment and Registration Summary 4Q 2023 4Q 2022 % Change APUS Registrations 90,700 87,200 4% Total Rasmussen Enrollment 14,100 15,600 -10% Rasmussen Nursing Enrollment 5,700 7,600 -25% Rasmussen Non-Nursing Enrollment 8,400 8,000 5% HCN Enrollment 3,100 2,600 19% 18
Slide 19: Non-GAAP Disclosures
Non-GAAP Disclosures American Public Education is presenting adjusted EBITDA in connection with its GAAP results and urges investors to review the reconciliation of adjusted net income to the comparable GAAP financial measure that is included in the table below (under the caption “GAAP Net Income to
Slide 20: Non-GAAP Disclosures (continued)
Non-GAAP Disclosures (continued) American Public Education is presenting adjusted EBITDA in connection with its GAAP outlook and urges investors to review the reconciliation of projected adjusted net income to the comparable GAAP financial measure that is included in the table below (under the capti
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