American Public Education, Inc. · NASDAQ:APEI
American Public Education — Investor Presentation (January 2010)
26 slides from American Public Education's investor presentation, Jan 6, 2010
Slide 1: Advancing at a steady click: The success of our students
Advancing at a steady click: The success of our students. The value of our approach. A M E R I C A N P U B L I C E D U C A T I O N , I N C. January 2010
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: The Growing Value of Our Approach
Unique Position Sustainable Growth Holistic Value Affordable Tuition Broad Array of Degree Programs High Academic Quality Relationship Marketing Focus Addressing Large and Growing Markets Leverage from Rapidly Growing Civilian Student Population Proprietary Technology and Processes Create Efficienci
Slide 4: Higher Education for Those Who Serve
Military: Active Duty Military DoD Tuition Assistance ("TA") Civilians: Civilian & Military-Affiliated Federal Student Aid ("Title IV") 20% of net course registrations Veterans Education Benefits ("VA") Military Spouse DoD Tuition Assistance Cash & Other "Students by Type" represent the category whi
Slide 5: Military Heritage is Valuable to Civilian Markets
Founded as American Military University in 1991 by a retired Marine Corps Major Nationally Accredited (DETC) in 1995 In 2002, expanded into the American Public University System Established American Public University Regionally Accredited (NCA) in 2006 Gained access to Title IV funding in 2006 Today
Slide 6: Unique Position
Unique Position
Slide 7: A Unique Mission to be Affordable
A Unique Mission to be Affordable Expand access by lowering costs and barriers associated with higher education through low tuition, undergraduate book grant program, and few fees: Average tuition at state schools increased 6.5% in 2009-10 Undergraduate Degree Cost Non-resident and other program tui
Slide 8: Broad Array of Degree Programs, 100% Online
Broad Array of Degree Programs, 100% Online Students by Level: Students by School: September 2009 Unique Programs Unique Faculty Unique Experience Classes: Middle East Culture, Explosive Ordinance Disposal, Asymmetric Warfare Experts in their field: Dr. Alan Hale (Former U.S. Astronaut); Dr. Dani Ba
Slide 9: High Academic Quality and Demonstrated Outcomes
High Academic Quality and Demonstrated Outcomes Nationally benchmarked tools measure student engagement and learning: ETS Proficiency Profile, National Survey of Student Engagement (NSSE), Community of Inquiry Framework Survey (COI), and Major Field Tests Participate in Transparency by Design and HL
Slide 10: Relationship Marketing, A Distinctive Approach
High referrals and targeted advertising keep our cost of recruitment low, helps keep tuition affordable, and drives long-term customer satisfaction... New students by source: Referrals Targeted Approach Precise advertisement placement Use of social media, viral marketing Limited use of "lead gen" Re
Slide 11: Proven and Efficient Marketing Strategy
As seen in British Heritage Magazine As seen in National Volunteer Fire Council Newsletter Proven and Efficient Marketing Strategy: Prudently Targeting Select Audiences As seen on Facebook
Slide 12: Sustainable Growth
Sustainable Growth
Slide 13: Military Position and Opportunity
Military Position and Opportunity Market Opportunity with 2.1 Million Active Duty Military More than 300,000 utilizing tuition assistance to pursue higher education* 64% of military students are online and expected to grow to over 75% of total* Education is primary recruitment tool of the military;
Slide 14: Military Attributes Translate Well into Civilian Markets
Military Attributes Translate Well into Civilian Markets Target Niches in Civilian Market Strong Value Proposition in Civilian Market Affordability resonates in civilian markets Tuition Below Title IV loan limits Low debut burden upon graduation Low cohort default rate: 3.3% (3 yr average) 92% of AP
Slide 15: Civilian Market is Larger and More Rapidly Growing
Source: EduVentures Civilian Market is Larger and More Rapidly Growing According to EduVentures: Continued Rapid Growth in Online Students Expected Double-digit growth expected over next 5 years Market-funded opportunity enhanced by constrained nonprofit supply Very few (<15%) prospective adult lear
Slide 16: Leverage from Growing Civilian Student Population
Active Civilian Attributes... Higher retention - fewer drops in first class Higher percentage are graduate students - graduate programs more profitable More classes annually - civilians take 6 classes on average vs. 4 classes for military Lead to Positive Economics, Offsetting Higher Advertising Cos
Slide 17: PAD Creates Operational Efficiencies and High Customer Satisfaction
Promotes student interaction and student engagement. Fulfills virtually every university function that a student needs. All transactions receive a high quality, rapid response that is measured to ensure effectiveness. PAD Creates Operational Efficiencies and High Customer Satisfaction Consists of pr
Slide 18: Positioned for Challenging Environments
Positioned for Challenging Environments Value proposition well positioned for highly regulated environment Affordable, Low Cohort Default Rates Transparent, High Quality and Regionally & Nationally Accredited Consultative Approach to Enrollment, High Customer Satisfaction Experienced Faculty and Inc
Slide 19: Holistic Value
Holistic Value
Slide 20: The Best Judge of Quality: Successful Alumni
APUS Graduates CAGR 64% *500 Employers and 414 Alumni Respondents The Best Judge of Quality: Successful Alumni More than 40% of alumni return for a second degree Over 50% of new students referred to APUS by others 98.6% of APUS alumni employers surveyed would hire another graduate from APUS* 96.1% o
Slide 21: Strong Growth and Operating Leverage
(in thousands) 2009(e) represents 2009 Full Year Outlook Revenues 5 yr CAGR: 45% Income from continuing operations before interest income and income tax 5 yr CAGR: 61% (1) Excludes a $3.1 million write-off of capitalized software development costs in 2006. (in millions) (in millions) Net Course Regi
Slide 22: Strong Balance Sheet with No Debt
Strong Balance Sheet with No Debt As of Sept 30, 2009 As of December 31, 2008 Cash & Cash Equivalents Total Assets Total Long-Term Debt Depreciation and Amortization CAPEX ($ in millions) $63.8 $105.1 $0 $47.7 $78.8 $0 Nine Months Ended Sept 30 2008 2009 $3.9 $3.0 $8.6 $6.9
Slide 23: Recent Highlights in Third Quarter 2009
Recent Highlights in Third Quarter 2009 Strong 3Q2009 Enrollment and Net Course Registration Growth Net course registrations1 increased 42% Net course registrations from new students2 increased 41% Total student enrollment3 increased 44% to 59,300 Expanding Leadership Among Institutions Serving the
Slide 24: Holistic Value Created for All Key Audiences
Holistic Value Created for All Key Audiences Prudently manage long-term growth and generate consistent shareholder value creation American Public Education Employees Communities Support for niche markets and the various communities we serve (e.g., "Tips for Teachers" Program, Police Visor Card Progr
Slide 25: Investment Highlights
Investment Highlights Uniquely Position Unique approach to online higher education makes APUS well positioned for sustainable growth Significant Growth Opportunities Expanding growth opportunities in civilian market Efficient Operating Model Efficient operating model with opportunities for margin ex
Slide 26: Advancing at a steady click: The success of our students
Advancing at a steady click: The success of our students. The value of our approach. A M E R I C A N P U B L I C E D U C A T I O N , I N C. January 2010
American Public Education — Investor Presentation (January 2010) on 6ix