American Public Education, Inc. · NASDAQ:APEI
American Public Education — Q2 2021 Earnings Presentation
13 slides from American Public Education's earnings presentation, Aug 9, 2021
Slide 1: American Public Education, Inc. Second Quarter 2021 Results
American Public Education, Inc. Second Quarter 2021 Results PRESENTED BY Angela Selden President and CEO Richard Sunderland, CPA Executive VP and CFO
Slide 2: Safe Harbor Statement
Safe Harbor Statement Please note that statements made in this conference call and in the accompanying presentation materials regarding American Public Education, its subsidiaries, or Rasmussen University that are not historical facts may be forward-looking statements based on current expectations,
Slide 3: Second Quarter 2021 Update Topics
Second Quarter 2021 Update Topics ➢ Rasmussen Transaction ➢ APUS Enrollment Momentum ➢ Army Portal Discussion ➢ Action Plans ➢ Hondros Enrollment ➢ 2Q21 Financial Results ➢ Third Quarter 2021 Guidance ➢ Second Half 2021 Priorities 3
Slide 4: Rasmussen Acquisition
Rasmussen Acquisition On track to close in the third quarter of 2021 Expect to exceed initial synergy estimate of $5MM ➢ HLC approval received ➢ Awaiting clearing of other final closing conditions ➢ Rasmussen’s first half 2021 results through June ➢ 9% Revenue growth ➢ Integration planning completed
Slide 5: APUS Enrollment Update
APUS Enrollment Update 2Q21 Commentary 3Q21 Commentary ➢2Q21 Registrations sharply impacted by Army ➢3Q21 Registrations in July and August continue to tuition assistance (TA) portal outage be impacted by the portal outage ➢ Former portal taken offline on February 12 and new ➢ July Army registrations
Slide 6: APUS Action Plans
APUS Action Plans ➢APUS has engaged Hondros’s CEO, Harry Wilkins, to assist with modernizing APUS’s enrollment and admissions processes APUS has implemented ➢13-year tenure and former CFO of APUS several actions to improve ➢Supported by external consultants registration momentum and ➢Cost reductions
Slide 7: Hondros Enrollment Update
Hondros Enrollment Update 2Q21 Commentary 3Q21 Commentary ➢2Q21 Total student enrollment increased 36% ➢3Q21 Total student enrollment of 2,300+ ➢ ~2,400 students – highest in school history ➢ 19% year-over-year growth ➢Growth in ADN (RN) program of 45% ➢Some new student softness due in part to post-
Slide 8: Second Quarter 2021 Financial Highlights
Second Quarter 2021 Financial Highlights 5% 92% 36% $89.3MM Decrease in Decrease in Increase in Decrease in Consolidated Adjusted Cash and Net Income Revenue EBITDA Equivalents to $0.5MM to $78.0MM to $9.9MM $317.0MM 8
Slide 9: APEI's Financial & Operational Outlook
APEI’s Financial & Operational Outlook These statements are based on current expectations. These statements are forward-looking and actual results may differ materially. Third Quarter 2021 (% Approximate Y/Y Change) Adversely impacted by transition and APUS Net course registrations1 -8% to -13% outa
Slide 10: Priorities for 2H21
Priorities for 2H21 Growth Integration Transformation w/ Emphasis on HEROITM of Rasmussen University Drive Operational Excellence • Stabilize and grow APUS registrations • Close Rasmussen Transaction • Accelerate organic growth through focused • Right-size cost structure to align with lower • Execut
Slide 11: Thank You
Thank You 11
Slide 12: APPENDIX: DISCLOSURES
APPENDIX: 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 measures that is included in the table below (under the caption “GAAP to Adjusted
Slide 13: APPENDIX: DISCLOSURES (CONTINUED)
APPENDIX: DISCLOSURES (CONTINUED) American Public Education is presenting adjusted EBITDA in connection with its GAAP outlook and urges investors to review the reconciliation of adjusted net income to the comparable GAAP financial measures that is included in the table below (under the caption “GAAP
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