American Public Education, Inc. · NASDAQ:APEI
American Public Education — Q2 2023 Earnings Presentation
18 slides from American Public Education's earnings presentation, Aug 8, 2023
Slide 1: American Public Education, Inc. Second Quarter 2023 Results
American Public Education, Inc. Second Quarter 2023 Results August 8, 2023 PRESENTED BY AngelaSelden President andCEO Richard Sunderland, CPA Executive VP and CFO
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements made in this presentation regarding American Public Education, Inc. or its subsidiaries (“APEI” or the “Company”) that are not historical facts are forward-looking statements based on current expectations, assumptions, estimates and projections about APEI and the ind
Slide 3: 2Q23 Executive Summary
2Q23 Executive Summary Key Take-Aways Guidance Summary ▪ APEI delivered revenue of $147.2 million, at the high end of guidance ($ in millions) 3Q 2023 ▪ Net loss available to common of $(52.7) million and EPS per diluted common share of $(2.93) Revenue $148.3 to $150.3 ▪ Excluding non-cash impairmen
Slide 4: Education Unit Updates
Education Unit Updates
Slide 5: APUS Summary
APUS Summary APUS Registrations 10% 7% 6% 2% 1% 1% 3% 1% -2% -8% -8% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Guidance Period* ❖ Overall margin expansion due to higher enrollments + modest price increase + improved marketing efficiencies ❖ Continued positive enrollment growth driven by
Slide 6: Hondros Summary
Hondros Summary HCN Total Enrollment Total HCN YOY % Change 45% 3,000 2,800 2,700 36% 2,600 2,500 2,460 2,440 2,380 2,410 2,270 2,300 22% 17% 17% 19% 10% 8% 4% 4% 3% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 ❖ 14 consecutive quarters of yr/yr enrollment growth ❖ 2Q23 EBITDA was positive
Slide 7: Rasmussen Summary
Rasmussen Summary Rasmussen Total Enrollment Total Ras Enrollment YOY % Change 8% 5% 17,300 17,000 17,100 16,300 16,200 15,900 15,600 -1% -3% 15,000 14,300 13,900 -6% -6% -8% 13,500 -9% -10% -12% -13% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 ❖ Permanent leadership in place; 12 of 16 ne
Slide 8: APEI Financial Results
APEI Financial Results
Slide 9: Revenue Summary by Education Unit
Revenue Summary by Education Unit APEI Revenue % % ($ in millions) 2Q22 2Q23 Change 1H22 1H23 Change $ 69.9 $ 73.6 5% $ 143.0 $ 147.5 3% $ 63.9 $ 52.0 -19% $ 131.0 $ 109.4 -16% $ 11.5 $ 14.3 24% $ 23.0 $ 27.4 19% 1 $ 4.3 $ 7.4 71% $ 7.3 $ 12.5 71% $ 149.6 $ 147.2 -2% $ 304.4 $ 296.9 -2% ➢ 3 of 4 Uni
Slide 10: Education Unit Operating Income and Margin Profile
Education Unit Operating Income and Margin Profile Operating Income ($ in millions) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 APUS $ 13.2 $ 13.6 $ 12.5 $ 19.1 $ 17.1 $ 18.9 Margin 18% 19% 18% 26% 23% 26% Rasmussen 1 $ 0.9 $ (146.6) $ (7.9) $ (13.0) $ (12.9) $ (77.3) Margin 1% -229% -13% -21% -22% -149% Hondros
Slide 11: Education Unit EBITDA and Margin Profile
Education Unit EBITDA and Margin Profile EBITDA ($ in millions) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 APUS 14.9 15.2 14.1 20.6 18.5 20.2 Margin 20% 22% 21% 28% 25% 28% 1 Rasmussen 7.0 4.5 (1.9) (5.0) (6.9) (7.1) Margin 10% 7% -3% -8% -12% -14% Hondros (0.8) (0.4) (1.1) (0.7) (1.0) 0.1 Margin -7% -3% -10% -6
Slide 12: Capitalization & Liquidity
Capitalization & Liquidity ($ in millions) 12/31/2022 6/30/2023 Cash $ 129 $ 139 ($ in millions) (-) Restricted cash (27) (27) Annualized Outstanding Annualized Unrestricted cash $ 103 $ 113 (1) Financing Costs Amount Rate Interest expense $ 9.6 $ 99 9.7% Term Loan (principal) $ 99 $ 99 Preferred di
Slide 13: APEI's 3Q23 Outlook
APEI’s 3Q23 Outlook These statements are based on current expectations. These statements are forward-looking and actual results may differ materially. Third Quarter 2023 Guidance Full Year 2021 Guidanc (Approximate) (% Yr/Yr Change) 1 APUS Net course registrations 90,500 to 92,500 6% to 8% 2 HCN Stu
Slide 14: Thank You
Thank You
Slide 15: Education Unit Overview – Operating Income to EBITDA Reconciliation
Education Unit Overview – Operating Income to EBITDA Reconciliation APEI Revenue ($ in millions) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 Revenue 73.1 69.9 68.7 73.4 74.0 73.6 Operating Income (1) 13.2 13.6 12.5 19.1 17.1 18.9 (+) D&A 1.7 1.6 1.6 1.5 1.4 1.3 EBITDA 14.9 15.2 14.1 20.6 18.5 20.2 EBITDA Margin 2
Slide 16: Enrollment and Registration Summary
Enrollment and Registration Summary 2Q 2023 2Q 2022 % Change APUS Registrations 88,300 83,500 6% Total Rasmussen Enrollment 13,900 15,900 -12% Rasmussen Nursing Enrollment 6,400 8,200 -22% Rasmussen Non-Nursing Enrollment 7,500 7,700 -3% HCN Enrollment 3,000 2,440 22% 16
Slide 17: Disclosures
Disclosures 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 measure that is included in the table below (under the caption “GAAP Net Income to Adjusted
Slide 18: Disclosures (continued)
Disclosures (continued) American Public Education is presenting adjusted EBITDA in connection with its GAAP outlook and urges investors to review the reconciliation of projected adjusted net income to the comparable GAAP financial measure that is included in the table below (under the caption “GAAP
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