American Public Education, Inc. · NASDAQ:APEI
American Public Education — Q4 2007 Earnings Presentation
15 slides from American Public Education's earnings presentation, Mar 11, 2008
Slide 1: Fourth Quarter 2007 Earnings Conference Call
Proprietary - Not for duplication apei AMERICAN PUBLIC EDUCATION, INC. Fourth Quarter 2007 Earnings Conference Call March 11, 2008
Slide 2: Safe Harbor Statement
Statements made in this presentation regarding American Public Education, or its subsidiaries, that are not historical facts are forward-looking statements based on current expectations, assumptions, estimates and projections about American Public Education and the industry. These forward-looking st
Slide 3: Growth in Registrations
2006 2007 % Change Net Course Registrations from New Students 4,840 6,890 42% Net Course Registrations 17,070 27,830 63% Three Months Ended December 31, Growth in Registrations(1) 2006 2007 % Change Net Course Registrations from New Students 14,410 24,700 71% Net Course Registrations 54,830 94,850 7
Slide 4: Recent Developments
Received provisional acceptance into the Navy College Program Distance Learning Partnership (NCPDLP) - Broadens access to Navy market - Provides visibility on Navy education websites The West Virginia Board of Education (WVBE) approved the new Master of Education (M.Ed.) in Administration and Superv
Slide 5: 2007 Student Composition
2007 Student Composition Students by School: Students by Degree Level: Students by Status: Graduate 26% Undergraduate 74% Military 67% Civilian 18% Military Affiliated 15% Public Safety, National and Homeland Security 53% Arts &Science 21% Business Mgmt 19% Professional Studies 7%
Slide 6: 2007 Marketing and Funding Sources
2007 Marketing and Funding Sources Applications by Marketing Source: Revenue by Funding Source: Cash & Other Sources 22% TA/VA 66% Referrals 54% Internet 33% Print 7% Other 6% Private Loans 1% Title IV 11% 6
Slide 7: Title IV Loan Limits vs. APUS Tuition
Title IV Loan Limits vs. APUS Tuition: APUS Tuition Below Title IV Maximum Loan Limits Sources: U.S. Department of Education, Financial Aid Resource Publication, 2007-2008. Title IV Limit: Represents the maximum annual Title IV loan limit for independent undergraduate student. APUS Tuition: Assumes
Slide 8: 4Q2007 Financial Results
4Q2007 Financial Results ($ in thousands, except per share data and registrations) $(413) $5,126 >100% Income (loss) from Continuing Operations Before Interest Income and Income Tax Diluted EPS $0.00 $0.19 >100% Net Income $20 $2,958 >100% Revenues $12,896 $21,221 65% Net Course Registrations 17,070
Slide 9: Track Record of Growth
Track Record of Growth $0 $10 $20 $30 $40 $50 $60 $70 2002 2003 2004 2005 2006 2007 Revenues CAGR 45% ($ in millions) 9$10.7 $17.8 $23.1 9 $40.0 $69.1 9 $40.0 $69.1 $28.2
Slide 10: Operating Income Growth
Operating Income Growth $14.7 $6.1(1) $1.8 $3.6 $2.2 $0 $3 $5 $8 $10 $13 $15 2003 2004 2005 2006(1) 2007 ($ in millions) (1) Excludes a $3.1 million write-off of software development costs. (1) (1) CAGR 69% 10 Income from continuing operations before interest income and income tax
Slide 11: Growth in EBITDA
EBITDA from continuing operations* Growth in EBITDA ($ in millions) (1) Excludes a $3.1 million write-off of software development costs. (1) (1) CAGR 70% EBITDA is a non-GAAP financial measure. Investors are encouraged to review the reconciliation of the non-GAAP pro forma financial measures to thei
Slide 12: Full Year 2008 Outlook
1 Full Year 2008 %Growth Net Course Registrations from New Students 33,500+ 36%+ Net Course Registrations 137,000+ 44%+ Total Revenue $100 to $103 million 45%-49% Income from Continuing Operations Before Interest Income and Income Tax (1) $19.1 to $20.1 million 30%-37% Net Income $11.9 to $12.5 mill
Slide 13: Closing Remarks – APEI Positioned for Strong Growth in 2008
Enhanced opportunities with the Navy New IT and Education degrees recently launched New degrees in development No expected impact from the "lending crisis" Affordability continues to provide advantages Closing Remarks – APEI Positioned for Strong Growth in 2008
Slide 14: Regulation G – Reconciliation of GAAP to Proforma
Regulation G – Reconciliation of GAAP to Proforma ($ in millions) 2003 2004 2005 2006 2007 Income (loss) from continuing operations before Interest income and income taxes $1.9 $3.6 $2.2 $2.9 $14.7 Adjustments: Add: Depreciation and amortization $0.2 $0.7 $1.3 $2.0 $2.8 Add: Write-off of software de
Slide 15: Proprietary - Not for duplication www.AmericanPublicEducation.com
Proprietary - Not for duplication www.AmericanPublicEducation.com
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