American Public Education, Inc. · NASDAQ:APEI
American Public Education — Q1 2024 Earnings Presentation
18 slides from American Public Education's earnings presentation, May 7, 2024
Slide 1: First Quarter 2024 Earnings Presentation
Nasdaq: APEI First Quarter 2024 Earnings Presentation
Slide 2: Forward Looking Statements
Forward Looking Statements Statements made in this presentation regarding American Public Education, Inc. or its subsidiary institutions (“APEI” or the “Company”) that are not historical facts are forward-looking statements based on current expectations, assumptions, estimates and projections about
Slide 3: APEI Executive Summary
APEI Executive Summary APEI is executing on its turnaround at Rasmussen and return to overall growth and profitability. We are focused on core military/veterans and nursing/health-ed businesses that have consistently stable and long-term demand. Management has addressed the operational challenges an
Slide 4: APEI Education Platform
APEI Education Platform For Service Minded Students National Nursing Platform #1 provider of pre-licensure ADN+PN education • #1 market positions in active-duty military • Full ladder of nursing curriculum (PN, ADN, and veterans BSN, MSN, FNP, DNP); 15 allied health / • ~90,000 adult learners from o
Slide 5: APUS Summary
APUS Summary ▪ Net course registrations grew +3% in 1Q24 vs. 1Q23 ▪ 4%+ military growth ▪ 9% revenue growth driven by growth in registrations and impact of select tuition increases in 2023 ▪ 32% increase in EBITDA in 1Q24 to $24 million compared to 1Q23 ▪ EBITDA Margin increased to 30% in 1Q24 compa
Slide 6: Hondros Summary
Hondros Summary ▪ 17 consecutive quarters of yr/yr enrollment growth through 2Q24 ▪ 1Q24 enrollments were 22% higher than 1Q23 ▪ Positive 1Q24 EBITDA compared to negative ($1.0) million of EBITDA in 1Q23 ▪ Hondros NCLEX scores exceeded thresholds in 1Q24 ▪ 2Q24 enrollment is 10% higher than a strong
Slide 7: Rasmussen Summary
Rasmussen Summary ▪ 2Q24 enrollment improved to -2% yr/yr, reflecting continued enrollment stabilization and improving trends ▪ Online enrollment was flat in 1Q24 and grew 4% in 2Q24 ▪ On-ground Healthcare enrollment continued to improve sequentially, down 9% in 2Q24 compared with down 11% in 1Q24 ▪
Slide 8: Revenue Summary by Education Unit
APEI Revenue Revenue Summary by Education Unit % ($ in millions) 1Q23 1Q24 Change $74.0 $80.7 9% $57.5 $53.1 -8% $13.1 $16.4 25% 1 $5.1 $4.2 -18% $149.7 $154.4 3% ▪ Continued solid revenue growth at APUS driven by net course registration increases and select tuition and fee increases implemented in
Slide 9: Education Unit EBITDA & Margin Profile
Education Unit EBITDA & Margin Profile Segment Summary ($ in millions) 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 1 Revenue $74.0 $73.6 $76.4 $79.4 $303.3 $80.7 APUS EBITDA $18.5 $20.2 $23.3 $30.5 $ 92.5 $24.3 Continued margin growth in 1Q24 driven by higher Margin 25% 28% 30% 38% 30% 30% enrollments, select pri
Slide 10: Investment Summary
Investment Summary ▪ Addressable market expected to grow at >10% over the next 5 years to >$100 Accreditations include, but are not limited to the following: billion − APUS in top 11% for student return on educational investment − 250,000 registered nurses needed per year; APEI graduates ~10,000 per
Slide 11: Vision, Mission, Values
VISION Education that transforms lives, advances careers, and improves communities. MISSION Powering Potential and Prosperity for Those Who Serve. VALUES Be Customer Centric • Be Accountable Be Agile • Be Respectful & Inclusive Do the Right Thing 1) Adjusted EBITDA (earnings before interest, taxes,
Slide 12: Appendix
Appendix 12
Slide 13: Education Unit Operating Income and Margin Profile
Education Unit Operating Income and Margin Profile Operating Income ($ in millions) 1Q23 2Q23 3Q23 4Q23 1Q24 APUS $ 17.1 $ 18.9 $ 21.9 $ 26.5 $ 23.1 Margin 23% 26% 29% 33% 29% Rasmussen1 $ (12.9) $ (77.3) $ (10.6) $ (2.9) $ (9.0) Margin -22% -149% -20% -5% -17% Hondros $ (1.3) $ (0.2) $ (0.6) $ 0.8
Slide 14: Education Unit Overview – Operating Income to EBITDA Reconciliation
Education Unit Overview – Operating APEI Revenue Income to EBITDA Reconciliation Full Year ($ in millions) 1Q23 2Q23 3Q23 4Q23 2023 1Q24 Revenue 74.0 73.6 76.4 79.4 303.3 80.7 Operating Income (1) 17.1 18.9 21.9 26.5 84.4 23.1 (+) D&A 1.4 1.3 1.3 1.3 5.3 1.2 (+) Impairment / Other - - - 2.8 2.8 EBIT
Slide 15: 1Q24 Enrollment and Registration Summary
1Q24 Enrollment and Registration Summary 1Q 2024 1Q 2023 % Change APUS Registrations 99,000 96,300 3% Total Rasmussen Enrollment 13,500 14,300 -6% Rasmussen On-ground Enrollment 6,300 7,100 -11% Rasmussen Online Enrollment 7,200 7,200 0% HCN Enrollment 3,300 2,700 22% 1) Adjusted EBITDA (earnings be
Slide 16: Non-GAAP Disclosures
Non-GAAP 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
Slide 17: Non-GAAP Disclosures (continued)
Non-GAAP 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 capti
Slide 18: www.apei.com
NASDAQ: APEI Company Steve Somers, CFA Chief Strategy & Corporate Development Officer investorrelations@apei.com Investor Relations Brian M. Prenoveau, CFA MZ Group 561-489-5315 APEI@mzgroup.us www.apei.com
American Public Education — Q1 2024 Earnings Presentation on 6ix