American Public Education, Inc. · NASDAQ:APEI

American Public Education — 23rd Annual Needham Growth Conference (January 2021)

15 slides from American Public Education's conference presentation, Jan 12, 2021

  1. Slide 1: HEROI: Providing a Higher Education Return on Investment

    HEROITM Providing a Higher Education Return on Investment to Learners of All Backgrounds PRESENTED BY Angela Selden President and CEO Richard Sunderland, CPA Executive VP and CFO American Public Education, Inc.

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement Statements made in this presentation regarding American Public Education, Inc. (“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-

  3. Slide 3: APEI Overview

    APEI OVERVIEW APEI is a provider of accessible and affordable higher education programs through two highly-regarded institutions American Public University System(1) Hondros College of Nursing(4) American Public University System (APUS) provides affordable, high-quality 11% Hondros College of Nursin

  4. Slide 4: APUS: Purpose Made Possible

    APUS: PURPOSE MADE POSSIBLE Ranked in top 2% among approx. 4,500 higher education institutions for 40-year return on education investment1  Low or No APUS-Incurred Student Loan Debt 72% Top 2% graduates with • Per credit hour cost has increased only $35 since 2001 among colleges in no APUS- deliver

  5. Slide 5: Hondros: "A Better Way to Become a Nurse"

    HONDROS: “A BETTER WAY TO BECOME A NURSE” “1+1” Laddered Programs of Study Relevant to the Workplace Become an LPN • Concept-Based Curriculum • Start without prerequisites or wait lists • High-definition simulation labs • Clinical experience in second quarter • 85+ healthcare partnerships provide •

  6. Slide 6: Transformative Deal Positions APEI for Future Growth

    TRANSFORMATIVE DEAL POSITIONS APEI FOR FUTURE GROWTH Acquisition of Rasmussen University expected to double APEI revenue to $600MM in 2021* APEI Will Be Establishes APEI APEI and #1 Educator of As a Scale Rasmussen have Pre-Licensure Platform w/ Strong Alignment Nurses (ADN/RN New Capabilities aroun

  7. Slide 7: Rasmussen Overview

    RASMUSSEN OVERVIEW Leader in Nursing with a Strong Regulatory Track Record and Attractive Financial Profile PROFILE ENROLLMENT PROFILE  120 Year History – Founded in 1900 as a business skills school  18,200 student enrollment for women  7 Schools: Nursing, Health Sciences, Business, Education, 

  8. Slide 8: Strong Enrollment Momentum Across Institutions

    STRONG ENROLLMENT MOMENTUM ACROSS INSTITUTIONS APUS HONDROS RASMUSSEN FYE 12/31 FYE 12/31 FYE 9/30 90,300 1,954 89,600 84,800 1,749 18,197 17,126 16,949 16,614 16,048 16,038 79,800 1,595 1,566 1,538 76,700 75,900 8,219 6,897 6,982 6,683 1,410 6,275 6,403 9,773 9,635 10,229 9,967 9,931 9,978 Total Co

  9. Slide 9: Rasmussen Acquisition Accelerates APEI's Value Creation Strategy

    RASMUSSEN ACQUISITION ACCELERATES APEI’S VALUE CREATION STRATEGY Acquisition of Nursing Platform Amplifies Our Mission in Helping Learners Maximize HEROI TM Positions APEI Profile to Rasmussen + Hondros = APEI Resulting Mix will be: Growth, Scale and HEROITM $165M Powerhouse in Nursing Education One

  10. Slide 10: Doubles Revenue & Establishes APEI as a Scale Platform

    DOUBLES REVENUE & ESTABLISHES APEI AS A SCALE PLATFORM Rasmussen University further accelerates APEI’s growth story $700 APEI Pro Forma Revenue, • In 2021, nearly doubles APEI’s USD Mn $600 revenue to $600MM, $31MM in $600 net income and $100MM in 90% $500 adjusted EBITDA Pro Forma 2020 Enrollment 1

  11. Slide 11: Enterprise Initiatives

    ENTERPRISE INITIATIVES Synergies and New Capabilities Poised to Amplify APEI Mission of HEROITM • Focus on integration of Rasmussen • Implement shared services at Hondros and leverage new shared services through Rasmussen • Unlock $5M-$10M in potential synergies in each of the first three years • Fa

  12. Slide 12: Investment Highlights

    INVESTMENT HIGHLIGHTS Transformational Acquisition of Rasmussen University APEI Recent Growth Drivers In 2021, nearly doubles APEI’s revenue to $600MM, $31MM in net income and $100MM in EBITDA. Establishes APEI as scale platform, amplifies value creation strategy. 1. Freedom Grant for active-duty se

  13. Slide 13: Thank You

    Thank You American Public Education, Inc.

  14. Slide 14: Appendix: Disclosures

    APPENDIX: DISCLOSURES • Forward looking revenue statements are presented on an annual pro forma basis, assuming that the acquisition was effective as of January 1, 2021 • Nursing market data based on IPEDS and APEI Analysis American Public Education is presenting adjusted EBITDA in connection with i

  15. 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

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