American Public Education, Inc. · NASDAQ:APEI
American Public Education — Q4 2020 Earnings Presentation
16 slides from American Public Education's earnings presentation, Mar 9, 2021
Slide 1: Fourth Quarter & Full Year 2020 Results
American Public Education, Inc. Fourth Quarter & Full Year 2020 Results PRESENTED BY Angela Selden President and CEO Richard Sunderland, CPA Executive VP and CFO
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements made in this presentation regarding APEI or its subsidiaries that are not historical facts are forward-looking statements based on current expectations, assumptions, estimates and projections about APEI and the industry. Forward-looking statements can be identified b
Slide 3: 2020 in Review – A Year of Transformation and Acceleration
2020 in Review – A Year of Transformation and Acceleration Setting adult learners on the path toward achieving their dreams and helping maximize the return on their higher education investment New Leadership Focused on Building a National Nursing Platform Transformation and Growth ▪ Angela Selden na
Slide 4: 2020 – A Return to Enrollment Momentum
2020 – A Return to Enrollment Momentum APUS Net Course Registrations by New Students HCN New Student Enrollment 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 13,480 710 12,144 11,639 649 10,137 492 0%+ +30% +25% +17% 444 +31% +57% +88% +34% 2020 2020 Total Course Registrations HCN Total Enrollment +11.5% +18% (2020) 89,6
Slide 5: Driven by Targeted Investments in Marketing & Student Experience
Driven by Targeted Investments in Marketing & Student Experience ▪ Increased investment in marketing, ▪ Nimble and flexible in adapting to COVID especially in micro-segments where − Campuses remained open per guidelines HEROITM resonates − Virtual course/learning capabilities added ▪ Expanded APUS-f
Slide 6: Strong Top-Line Revenue Growth
Strong Top-Line Revenue Growth APEI has continued to demonstrate consistent results with strong top-line trends through 2020 APEI – New Initiatives Lead to Strong Growth FY SEGMENT REVENUE $321,785 $120,000 SEGMENT REVENUE $320,000 $100,000 $300,000 QUARTERLY $286,270 $80,000 $280,000 $85,909 $60,00
Slide 7: Strategic Acquisition: Scale and Growth in Nursing Education
Strategic Acquisition: Scale and Growth in Nursing Education Rasmussen – A Transformational Acquisition Building a National Nursing Platform APEI’s Nursing (50% of revenue / 45% of enrollment) + = Nursing Platform1 Campuses1 25 7 32 ✓ Leading RN program, comprising 75% of nursing enrollments 2020 Nu
Slide 8: APEI Positioned for Growth in 2021 & Beyond
APEI Positioned for Growth in 2021 & Beyond Diversification Capital Structure • Adding Rasmussen to APEI’s platform expected to diversify ✓ APEI closed its previously announced underwritten public revenue to 35% Military, 29% Nursing and 36% Online Education offering of shares with net proceeds of $
Slide 9: Fourth Quarter 2020 Highlights
Fourth Quarter 2020 Highlights Fifth Consecutive Quarter of YoY Enrollment Growth at APUS & Record Enrollment at HCN APUS Net Course Registrations. Net Income. • New student registrations at APUS • APEI net income increased to $7.1 increased 17% yr/yr. million, an increase of 25% compared to the pri
Slide 10: FY2020 Financial Highlights
FY2020 Financial Highlights ($ in millions) 12% 88% 17% $24.9MM Consolidated Net Income Cash Flow Cash and Revenue Increase from Operations Equivalents $321.8MM $18.8MM $44.8MM $227.7MM $321.8 $227.7 $44.8 $202.7 $286.3 $18.8 $38.4 $10.0 2019 2020 2019 2020 2019 2020 2019 2020 10
Slide 11: 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. First Quarter 2021 Approximate Y/Y Change APUS Net course registrations1 by new students Approximately +13% Represents the sixth c
Slide 12: Priorities for 2021 – Maximize Learner HERO
Priorities for 2021 – “Maximize Learner HEROI ” TM A Durable, High-Quality Scale Platform w/ Organic and Inorganic Growth Opportunities; Operating Margin Improvement Driven by Growth, Enterprise Transformation and Shared Services; New Leadership w/ Demonstrated Track Record Growth Integration Transf
Slide 13: Thank You
Thank You 13
Slide 14: Appendix
APPENDIX Twelve Months Ended December 31, 2020 2019 COSTS AND EXPENSES Instructional costs and services 38.0% 39.1% Selling and promotional 22.7% 21.0% General and administrative 27.3% 27.3% Loss on disposals of long-lived assets 0.3% 0.2% Impairment of goodwill — 2.5% Depreciation and amortization
Slide 15: Appendix: Disclosures (Continued)
APPENDIX: DISCLOSURES (CONTINUED) 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
Slide 16: 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
American Public Education — Q4 2020 Earnings Presentation on 6ix