American Public Education, Inc. · NASDAQ:APEI
American Public Education — Q1 2009 Earnings Presentation
21 slides from American Public Education's earnings presentation, May 7, 2009
Slide 1: Online Higher Education Built To Succeed
Online Higher Education Built To Succeed May 7, 2009 First Quarter 2009 Conference Call
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: A Solid Start to the Year 2009
A Solid Start to the Year 2009 Strong Growth in Niche Civilian SegmentsFor the three months ended March 31, 2009, net course registrations from students using Title IV grew 87.5% to approximately 7,500 (16% of net course registrations)Expanded Military Outreach Signed two new MOUs Hired a new milita
Slide 4: Net Course Registrations and Enrollment
Net Course Registrations and Enrollment For the three months ended March 31, 2008 2009 % Change Net Course Registrations from New Students 7,500 10,500 40% Net Course Registrations 33,100 46,650 41% As of March 31, 2008 2009 % Change Total Student Enrollment 33,000 49,600 50% Note: Net course regist
Slide 5: Influencing APUS Quality and Improving Retention
College 100 course for new online undergraduate studentsFollows many of the well-researched pathways Persistence rate of approximately 80% (between “College 100” and second class) Participation in the HLC’s Assessment AcademyParticipation in the National Survey for Student EngagementParticipation in
Slide 6: Challenging Coursework Leads to Strong Outcomes
Challenging Coursework Leads to Strong Outcomes Preparing for class (studying, reading, writing, doing homework or lab work, etc. related to academic program) Number of assigned textbooks, books, or book-length packs of course readings Number of written papers or reports of 20 pages or more; number
Slide 7: APUS Activities Support US Higher Education Goals
APUS mission aligns with that of Congress and the administration – to make higher education more affordable, accessible and transparent. APUS Activities Support US Higher Education Goals AccessiblePart of the SolutionAffordableTransparent The U.S. college attainment rate has fallen to 12th among maj
Slide 8: APUS Enjoys Solid Leadership Position within Military Higher Education
APUS Enjoys Solid Leadership Position within Military Higher Education#1 in total DOD enrollment*Well regarded by key influencers/military leadership APUS is Attractive to Military Professionals and Families Affordable – minimal out of pocket expense for active duty military A military and public se
Slide 9: Success in Niche Civilian Markets
Success in Niche Civilian Markets Title IV enrollment increased 87.5% year over yearCivilian applications increasing Improving civilian conversion rates a significant opportunity for APUSEnhancing transfer credit processesContinued improvement of Title IV processing Gaining Confidence and Traction i
Slide 10: Staying Ahead of The Curve
Staying Ahead of The Curve 2009 Initiatives: Continue to improve retention, especially in first 3 classesLaunch several new degree programs and specializations Continue to pursue specialty accreditations Improving conversion rates in civilian marketsPrepare for entry into new market segments
Slide 11: APEI Reports Strong First Quarter 2009 Revenue Growth
APEI Reports Strong First Quarter 2009 Revenue Growth Driven by Strong Increase in Net Course RegistrationsEBIT Increases 58% to $8.7 million Net Income Increases 53% to $5.2 millionReports Earnings of $0.28 Per Diluted Share Strong Balance Sheet:No long-term debtIncreasing cash balance, lower inter
Slide 12: Continued Margin Improvement
Continued Margin Improvement
Slide 13: Strong Balance Sheet with No Debt
Strong Balance Sheet with No Debt Cash & Cash Equivalents $53.0 $31.8Total Assets $85.6 $54.7 Total Long-Term Debt $0 $0 Other Items: Depreciation and Amortization $1.3 $0.9 CAPEX $2.2 $1.8 ($ in millions) As of March 31, 2009 2008
Slide 14: Seasonality in New Net Course Registrations
Seasonality in New Net Course Registrations Net Course Registrations from New Students Typically, 1Q and 2Q show little sequential increase. 2008 seasonality was unusual due to timing of new Title IV starts (about 300) and unusually large inflow of new military students. Ramp up in civilian applicat
Slide 15: Company Introduces Second Quarter 2009 Outlook
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. Second Quarter 2009 % Growth Net Course Registrations from New Students approx. 11,350 29% Net Course Registrations approx. 46,600 40% Total Revenue $33.8 to $35
Slide 16: Company Increases Full Year 2009 Outlook
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. Full Year 2009 % GrowthNet Course Registrations from New Students 50,200 or more 37%+Net Course Registrations 202,500 or more 38%+Total Revenue$147 to $151 milli
Slide 17: Strong Student Population Growth
APEI has achieved rapid growth in student registrations in a challenging economic environment…Net Course Registrations Strong Student Population Growth 38% Growth (in thousands) 2009(e) represents 2009 Full Year Outlook of 202,500 or more net course registrations 7 year CAGR: 40%
Slide 18: Built For Predictable Growth
APEI has consistently experienced strong revenue growth…Revenues Built For Predictable Growth 39% Growth ($ in millions) 2009(e) represents midpoint of 2009 Full Year Outlook 7 year CAGR: 46%
Slide 19: Built For Improving Operating Performance
Operating income growth has increased faster than revenue growth…Built For Improving Operating Performance 55% 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) 2009(
Slide 20: Built With A Simple, Sensible Strategy
Built With A Simple, Sensible Strategy 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
Proprietary - Not for duplication
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