American Public Education, Inc. · NASDAQ:APEI
American Public Education — Q4 2008 Earnings Presentation
21 slides from American Public Education's earnings presentation, Mar 10, 2009
Slide 1: Online Higher Education Built To Succeed: Fourth Quarter 2008 Conference Call
1 Online Higher Education Built To Succeed March 10, 2009 Fourth Quarter 2008 Conference Call
Slide 2: Safe Harbor Statement
2 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
Slide 3: A Strong Year for American Public University System
3 A Strong Year for American Public University System Strong Growth in Niche Civilian Markets APUS received approval to be a Liberal Arts Degree Granting Institution by HLC Specialty accreditation: School of Business became candidate for accreditation by ACBSP Emergency & Disaster Management program
Slide 4: Net Course Registrations, Graduation and Enrollment
4 Net Course Registrations, Graduation and Enrollment Body: For the three months ended December 31, 2007 2008 % Change Net Course Registrations from New Students 6,890 9,950 44% Net Course Registrations 27, 830 41,850 50% For the twelve months ended December 31, 2007 2008 % Change Net Course Registr
Slide 5: Military Market Exceeding Expectations
5 Military Market Exceeding Expectations Rank by Enrollments1 Army: #42 Navy: #52 Air Force: #1 Marines: #1 Total DoD: #1 1Source: CCME 2008 & Company Estimates 1-5% Military Market Growth1 Military’s Growing Online Focus Increasing Participation Rates AMU’s military market share increased from 10%
Slide 6: Built To Succeed in Civilian Markets
6 Built To Succeed in Civilian Markets Affordability resonates with civilians Unique approaches to niche markets Enter new markets & segments Launch new degrees & specializations Expand referral programs Title IV Registration Growth: 101% Growth (Registrations in Thousands) 2007 2008 NCR 10.2 20.5 2
Slide 7: Students by School: APUS Student Population
7 Students by School: APUS Student Population A Unique and Diversified Product Offering… 74 Total degree programs, including liberal arts 7 Schools within APU and AMU Focus on Key Influencers and Customer Satisfaction Drive High Referral Rates… Referral Rate: Over 50% Retention Rate Improvement: 0.4
Slide 8: National Survey of Student Engagement (NSSE)
8 National Survey of Student Engagement (NSSE) How do seniors rate their entire educational experience? Would seniors attend the same institution if they could start over again? Administered by Indiana University Center for Postsecondary Research 769 NSSE Institutions and 478,079 students responding
Slide 9: A Student Population with Stable Funding Sources
9 Registrations by Source: Students by Status: Military 68% Civilian 18% Military- Affiliated 14% A Student Population with Stable Funding Sources At December 31, 2008 Military: Active Duty Military DoD Tuition Assistance (“TA”) Civilians: Civilian & Military-Affiliated Federal Student Aid (“Title I
Slide 10: Staying Ahead of The Curve
10 Staying Ahead of The Curve Body: Other Recent Successes: Completed follow-on offerings Appointment of Timothy J. Landon to Board of Directors Company is Sarbanes Oxley Compliant 2009 Initiatives Continue to improve retention, especially in first 3 classes Launch several new degree programs and sp
Slide 11: APEI in Strong Financial Position
APEI in Strong Financial Position Rapid revenue growth driven by continued strong registration growth Operating margin improvement Selling & Promotional Costs Instructional Costs General & Administrative Strong Balance Sheet: No long-term debt Increasing cash balance Purchase and build new facilitie
Slide 12: Rapid growth in student registrations
12 APEI has achieved rapid growth in student registrations in a challenging economic environment… Net Course Registrations Strong Student Population Growth 55% Growth (in thousands) 2002 2003 2004 2005 2006 2007 2008 NCR 19.0 25.6 32.6 37.5 54.8 94.8 147.1
Slide 13: Consistently strong revenue growth
13 APEI has consistently experienced strong revenue growth… Revenues Built For Predictable Growth 55% Growth ($ in millions) 2002 2003 2004 2005 2006 2007 2008 Rev 10.7 17.8 23.1 28.2 40.0 69.1 107.1
Slide 14: Improvements in Operating Leverage
14 Improvements in Operating Leverage
Slide 15: Seasonality in TA and Civilian Registrations
15 Seasonality in TA and Civilian Registrations DoD Budget Year End The Fall season is peak enrollment period for civilian and active duty students… January February March April May June July August September October November December TA 7,128 6,479 6,732 7,379 6,477 6,292 7,551 7,131 8,449 9,277 8,
Slide 16: Built For Improving Operating Performance
16 Operating income growth has increased faster than revenue growth… Built For Improving Operating Performance 75% Growth Income from continuing operations before interest income and income tax (1) Excludes a $3.1 million write-off of capitalized software development costs in 2006. ($ in millions) 2
Slide 17: Strong Balance Sheet with No Debt
17 Strong Balance Sheet with No Debt 2007 2008 Cash & Cash Equivalents $27.0 $47.7 Total Assets $49.0 $78.8 Total Long-Term Debt $0 $0 Other Items: Depreciation and Amortization $2.8 $4.2 CAPEX $6.8 $10.0 ($ in millions)
Slide 18: Company Introduces First Quarter 2009 Outlook
18 The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. First Quarter 2009 % Growth Net Course Registrations from New Students approx. 10,500 40% Net Course Registrations approx. 46,300 40% Total Revenue $31.8 to $
Slide 19: Company Introduces Full Year 2009 Outlook
19 The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. Full Year 2009 % Growth Net Course Registrations from New Students 50,700 or more 38%+ Net Course Registrations 202,500 or more 38%+ Total Revenue $146 to $15
Slide 20: Built With A Simple, Sensible Strategy
20 Built With A Simple, Sensible Strategy Body: Continue success in military market Expand in select civilian markets Utilize targeted approach to advertising Launch new programs Enter new market segments APEI has a blueprint for the future…
Slide 21: Proprietary - Not for duplication
21 Proprietary - Not for duplication
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