American Public Education Reports Fourth Quarter and Full Year 2024 Financial Results

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American Public Education (APEI) delivered strong Q4 2024 results that exceeded guidance, showing meaningful operational improvements across all educational segments. The company reported $164.1 million in Q4 revenue, a 7.4% year-over-year increase, with contributions from all three segments - Rasmussen University, Hondros College of Nursing, and American Public University System.

Particularly impressive was the Adjusted EBITDA growth of 22.2% to $31.4 million in Q4, demonstrating improved operational efficiency despite higher employee compensation and IT costs. While net income remained flat at $11.5 million and EPS slightly decreased to $0.63 from $0.64, these figures still exceeded management's guidance.

The company has maintained solid financial health with cash and equivalents increasing 10.1% year-over-year to $158.9 million, providing ample liquidity for operations and strategic initiatives. Management's forward-looking comments about simplifying operations through closing underperforming campuses, selling buildings, and terminating long-term contracts should enhance profitability metrics going forward.

For 2025, APEI forecasts revenue between $650 million and $660 million with Adjusted EBITDA of $75-85 million. The 6.8% enrollment increase at Rasmussen for Q1 2025 indicates continued momentum in their growth strategy. The full-year 2024 performance with 4% revenue growth and 21% Adjusted EBITDA improvement provides a solid foundation for the outlined 2025 objectives.

03/06/2025 - 04:01 PM

Net Income & Adjusted EBITDA Exceeded Guidance, Driven by Improvement in APUS, Rasmussen and Hondros College of Nursing Segments

CHARLES TOWN, W.Va., March 6, 2025 /PRNewswire/ -- American Public Education, Inc. (Nasdaq: APEI), a portfolio of education companies providing online and campus-based postsecondary education and career learning to over 125,000 students through four subsidiary institutions, has reported unaudited financial and operational results for the fourth quarter ended December 31, 2024.

Key Fourth Quarter 2024 Highlights

Consolidated revenue for Q4 2024 increased 7.4% year-over-year to $164.1 million.
Net income available to common stockholders in Q4 2024 was $11.5 million, essentially in line with net income available to common stockholders of $11.5 million in Q4 2023.
Net income per diluted common share in Q4 2024 was $0.63, compared to net income per diluted common share of $0.64 in Q4 2023.
Q4 2024 Adjusted EBITDA was $31.4 million compared to $25.7 million in Q4 2023.

Key Q1 and Full Year 2025 Guidance Highlights

Q1 2025 enrollments at Rasmussen, which were known at the end of Q4, increased to 14,500, or 6.8% compared to Q1 2024.
Establishing guidance for full year 2025 revenue of a range between $650 million and $660 million and Adjusted EBITDA between $75 million and $85 million.

Management Commentary

"We are very pleased with APEI's full year 2024 results, with revenue growing 4% and Adjusted EBITDA growing 21% as compared to 2023," said Angela Selden, President and Chief Executive Officer of APEI. "Additionally, in the fourth quarter of 2024, revenue, earnings per share and Adjusted EBITDA all exceeded the top end of our guidance."

"As we look to 2025, we intend to simplify and strengthen both our military and healthcare divisions. As we close underperforming campuses, sell buildings and terminate several long-term contracts, we expect these changes to simplify our operating structure and improve our long-term financial results," concluded Selden.

Fourth Quarter 2024 Financial Results

Total consolidated revenue for the three months ended December 31, 2024, was $164.1 million, an increase of $11.3 million, or 7.4%, compared to $152.8 million for the three months ended December 31, 2023. The increase in revenue was primarily due to a $4.9 million increase in revenue in our Rasmussen University ("RU") Segment, a $3.2 million increase in our Hondros College of Nursing ("HCN") Segment, and a $3.0 million increase in our American Public University System ("APUS") Segment.
Total costs and expenses for the three months ended December 31, 2024, were $142.6 million, an increase of $5.7 million, or 4.2%, compared to $136.9 million for the three months ended December 31, 2023. The increase in costs and expenses for the three months ended December 31, 2024 was primarily driven by increases in employee compensation costs and information technology costs, partially offset by a decrease in advertising expense and depreciation and amortization costs.
- Instructional costs and services expenses for the three months ended December 31, 2024, were $71.7 million, an increase of $0.9 million, or 1.3%, compared to $70.7 million for the three months ended December 31, 2023.
- Selling and promotional expenses for the three months ended December 31, 2024, were $29.1 million, an increase of $2.3 million, or 8.6%, compared to $26.8 million for the three months ended December 31, 2023.
- General and administrative expenses for the three months ended December 31, 2024, were $36.2 million, an increase of $4.9 million, or 15.6%, compared to $31.3 million for the three months ended December 31, 2023. The increase in general and administrative expenses is primarily due to increases in information technology costs and bad debt expense.
Net income available to common stockholders was $11.5 million, or $0.63 per diluted common share for the three months ended December 31, 2024, compared to net income of $11.5 million, or $0.64 per diluted common share, for the three months ended December 31, 2023.
Adjusted EBITDA was $31.4 million for the three months ended December 31, 2024, compared to $25.7 million for the three months ended December 31, 2023. Adjusted EBITDA excludes adjustment for stock compensation, loss on disposals of long-lived assets, loss on assets held for sale, and transition services costs.

Balance Sheet and Liquidity

Total cash, cash equivalents, and restricted cash were $158.9 million at December 31, 2024, compared to $144.3 million and December 31, 2023, representing an increase of $14.6 million, or 10.1%.

Registrations and Enrollment

	Q4 2024	Q4 2023	% Change
American Public University System¹
For the three months ended December 31, Net Course Registrations	97,100	90,700	7.1 %

Rasmussen University²
For the three months ended December 31, Total Student Enrollment	14,600	14,100	3.5 %

Hondros College of Nursing³
For the three months ended December 31, Total Student Enrollment	3,700	3,100	19.3 %

APUS Net Course Registrations represents the approximate aggregate number of courses for which students remain enrolled after the date by which they may drop a course without financial penalty. Excludes students in doctoral programs.
RU Total Student Enrollment represents students in an active status as of the full-term census or billing date.
HCN Total Student Enrollment represents the approximate number of students enrolled in a course after the date by which students may drop a course without financial penalty.

First Quarter and Full Year 2025 Outlook

The following statements are based on APEI's current expectations. These statements are forward-looking and actual results may differ materially. APEI undertakes no obligation to update publicly any forward-looking statements for any reason unless required by law. Refer to APEI's earnings conference call and presentation for further details.

		First Quarter 2025 Guidance
		(Approximate)	(% Yr/Yr Change)
APUS Net course registrations	100,500 to 102,000		1.5% to 3%
HCN Student enrollment	3,600		10 %
RU Student enrollment	14,500		7 %
- On-ground Healthcare		6,500	3 %
- Online		8,000	11 %

($ in millions except EPS)
APEI Consolidated revenue		$161.0 – $163.0	4% to 6%
APEI Net loss/income available to common stockholders		$1.7 – $3.1	n.a.
APEI Adjusted EBITDA		$13.5 – $15.5	(21%) to (9%)
APEI Diluted EPS		$0.09 – $0.17	n.a.

		Full Year 2025 Guidance
		(Approximate)	(% Yr/Yr Change)
($ in millions)
APEI Consolidated Revenue		$650 – $660	4% to 6%
APEI Net income available to common stockholders		$19 – $26	89% to 159%
APEI Adjusted EBITDA		$75 – $85	4% to 18%
APEI Capital Expenditure (CapEx)		$18 – $22	(14%) to 4%

Non-GAAP Financial Measures

This press release contains the non-GAAP financial measures of EBITDA (earnings before interest, taxes, depreciation, and amortization) and adjusted EBITDA (EBITDA less non-cash expenses such as stock compensation and non-recurring expenses). APEI believes that the use of these measures is useful because they allow investors to better evaluate APEI's operating profit and cash generation capabilities.

For the three months ended December 31, 2024 and 2023, adjusted EBITDA excludes impairment of goodwill and intangible assets, severance costs, loss on leases, stock compensation, loss on disposals of long-lived assets, and transition services costs.

These non-GAAP measures should not be considered in isolation or as an alternative to measures determined in accordance with generally accepted accounting principles in the United States (GAAP). The principal limitation of our non-GAAP measures is that they exclude expenses that are required by GAAP to be recorded. In addition, non-GAAP measures are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses are excluded.

APEI is presenting EBITDA and adjusted EBITDA in connection with its GAAP results and urges investors to review the reconciliation of EBITDA and adjusted EBITDA to the comparable GAAP financial measures that is included in the tables following this press release (under the captions "GAAP Net Income to Adjusted EBITDA," and "GAAP Outlook Net Income to Outlook Adjusted EBITDA") and not to rely on any single financial measure to evaluate its business.

About American Public Education

American Public Education, Inc. (Nasdaq: APEI), through its institutions American Public University System, Rasmussen University, Hondros College of Nursing, and Graduate School USA, provides education that transforms lives, advances careers, and improves communities.

APUS, which operates through American Military University and American Public University, is the leading educator to active-duty military and veteran students* and serves approximately 88,000 adult learners worldwide via accessible and affordable higher education.

Rasmussen University is a 125-year-old nursing and health sciences-focused institution that serves approximately 14,600 students across its 20 campuses in six states and online. It also has schools of Business, Technology, Design, Early Childhood Education and Justice Studies.

Hondros College of Nursing focuses on educating pre-licensure nursing students at eight campuses (six in Ohio, one in Indiana, and one in Michigan). It is the largest educator of PN (LPN) nurses in the state of Ohio** and serves approximately 3,700 total students.

Graduate School USA is a leading training provider to the federal workforce with an extensive portfolio of government agency customers. It serves the federal workforce through customized contract training (B2G) to federal agencies and through open enrollment (B2C) to government professionals.

Both APUS and Rasmussen University are institutionally accredited by the Higher Learning Commission (HLC), an institutional accreditation agency recognized by the U.S. Department of Education. Hondros is accredited by the Accrediting Bureau of Health Education Schools (ABHES). Graduate School USA is accredited by the Accrediting Council for Continuing Education & Training (ACCET). For additional information, visit www.apei.com.

*Based on FY 2019 Department of Defense tuition assistance data, as reported by Military Times, and Veterans Administration student enrollment data as of 2023.

**Based on information compiled by the National Council of State Boards of Nursing and Ohio Board of Nursing.

Forward Looking Statements

Statements made in this press release regarding 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. In some cases, forward-looking statements can be identified by words such as "anticipate," "believe," "seek," "could," "estimate," "expect," "intend," "may," "plan," "should," "will," "would," and similar words or their opposites. Forward-looking statements include, without limitation, statements regarding the Company's future path, expected growth, registration, enrollments, revenues, net income, Adjusted EBITDA and EBITDA, capital expenditures, the growth and profitability of Rasmussen University and plans with respect to recent, current and future initiatives.

Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, among others, risks related to: APEI's failure to comply with regulatory and accrediting agency requirements, including the "90/10 Rule", and to maintain institutional accreditation and the impacts of any actions APEI may take to prevent or correct such failure; changes in the postsecondary education regulatory environment as a result of U.S. federal elections, including any changes by or as a result of actions of the current administration to the operations of the Department of Education or changes to or the elimination or implementation of laws, regulations, standards, policies, and practices; potential or actual government shutdowns; the impact, timing, and projected benefits of the planned combination of APUS, RU, and HCN into one consolidated institution; APEI's dependence on the effectiveness of its ability to attract students who persist in its institutions' programs; changing market demands; declines in enrollments at APEI's subsidiaries;; APEI's inability to effectively market its institutions' programs; APEI's inability to maintain strong relationships with the military and maintain course registrations and enrollments from military students; the loss or disruption of APEI's ability to receive funds under Title IV or tuition assistance programs or the reduction, elimination, or suspension of federal funds; adverse effects of changes APEI makes to improve the student experience and enhance the ability to identify and enroll students who are likely to succeed; APEI's need to successfully adjust to future market demands by updating existing programs and developing new programs; APEI's loss of eligibility to participate in Title IV programs or ability to process Title IV financial aid; economic and market conditions and changes in interest rates; difficulties involving acquisitions; APEI's indebtedness and preferred stock, including the refinancing or redemption thereof; APEI's dependence on and the need to continue to invest in its technology infrastructure, including with respect to third-party vendors; the inability to recognize the anticipated benefits of APEI's cost savings and revenue generating efforts; APEI's ability to manage and limit its exposure to bad debt; and the various risks described in the "Risk Factors" section and elsewhere in APEI's Annual Report on Form 10-K for the year ended December 31, 2024, and in other filings with the SEC. You should not place undue reliance on any forward-looking statements. APEI undertakes no obligation to update publicly any forward-looking statements for any reason, unless required by law, even if new information becomes available or other events occur in the future.

Company Contact
Frank Tutalo
Director, Public Relations
American Public Education, Inc.
ftutalo@apei.com
571-358-3042

Investor Relations
Brian M. Prenoveau, CFA
MZ North America
Direct: 561-489-5315
APEI@mzgroup.us

American Public Education, Inc.
Consolidated Statement of Income
(In thousands, except per share data)

	Three Months Ended
	December 31,
	2024		2023
	(unaudited)

Revenue	$	164,110	$	152,804
Costs and expenses:
Instructional costs and services		71,661		70,747
Selling and promotional		29,057		26,750
General and administrative		36,228		31,332
Depreciation and amortization		3,863		5,081
Loss on assets held for sale		1,618		2,425
Loss on disposals of long-lived assets		148		537
Total costs and expenses		142,575		136,872
Income from operations before
interest and income taxes		21,535		15,932
Interest expense, net		(585)		(791)
Income before income taxes		20,950		15,141
Income tax expense		7,986		2,124
Equity investment loss		-		(3)
Net income	$	12,964	$	13,014
Preferred stock dividends		1,459		1,539
Net income available to common stockholders	$	11,505	$	11,475

Income per common share:
Basic	$	0.65	$	0.65
Diluted	$	0.63	$	0.64

Weighted average number of
common shares:
Basic		17,686		17,762
Diluted		18,366		17,896


	Three Months Ended
Segment Information:	December 31,
	2024		2023
Revenue:
APUS Segment	$	82,364	$	79,362
RU Segment	$	57,489	$	52,575
HCN Segment	$	18,941	$	15,789
Corporate and other	$	5,316	$	5,078
Income (loss) from operations before
interest and income taxes:
APUS Segment	$	27,279	$	26,463
RU Segment	$	3,603	$	(2,867)
HCN Segment	$	697	$	783
Corporate and other	$	(10,044)	$	(8,447)

	Twelve Months Ended
	December 31,
	2024		2023
	(unaudited)

Revenue	$	624,559	$	600,545
Costs and expenses:
Instructional costs and services		295,703		292,862
Selling and promotional		128,810		132,955
General and administrative		141,961		128,239
Depreciation and amortization		19,303		27,816
Impairment of goodwill and intangible assets		-		64,000
Loss on assets held for sale		1,618		2,425
Loss on leases		3,715		-
Loss on disposals of long-lived assets		383		554
Total costs and expenses		591,493		648,851
Income (loss) from operations before
interest and income taxes		33,066		(48,306)
Interest expense, net		(2,127)		(4,459)
Income (loss) before income taxes		30,939		(52,765)
Income tax expense (benefit)		10,419		(10,715)
Equity investment loss		(4,407)		(5,236)
Net income (loss)	$	16,113	$	(47,286)
Preferred stock dividends		6,056		6,008
Net loss available to common stockholders	$	10,057	$	(53,294)

Loss per common share:
Basic	$	0.57	$	(2.94)
Diluted	$	0.55	$	(2.93)

Weighted average number of
common shares:
Basic		17,625		18,112
Diluted		18,149		18,193


	Twelve Months Ended
Segment Information:	December 31,
	2024		2023
Revenues:
APUS Segment	$	317,049	$	303,303
RU Segment	$	216,262	$	214,086
HCN Segment	$	67,290	$	56,936
Corporate and other	$	23,958	$	26,220
Income (loss) from operations before
interest and income taxes:
APUS Segment	$	89,422	$	84,426
RU Segment	$	(21,798)	$	(103,575)
HCN Segment	$	(1,122)	$	(1,396)
Corporate and other	$	(33,436)	$	(27,761)

GAAP Net Income to Adjusted EBITDA:
The following table sets forth the reconciliation of the Company's reported GAAP net income to the calculation of adjusted EBITDA for the three and twelve months ended December 31, 2024 and 2023:


	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
(in thousands, except per share data)	2024		2023		2024		2023
Net income (loss) available to common stockholders	$	11,505	$	11,475	$	10,057	$	(53,294)
Preferred dividends		1,459		1,539		6,056		6,008
Net income (loss)	$	12,964	$	13,014	$	16,113	$	(47,286)
Income tax expense (benefit)		7,986		2,124		10,419		(10,715)
Interest expense, net		585		791		2,127		4,459
Equity investment loss		-		3		4,407		5,236
Depreciation and amortization		3,863		5,081		19,303		27,816
EBITDA		25,398		21,013		52,369		(20,490)

Impairment of goodwill and intangible assets		-		-		-		64,000
Severance costs		-		-		530		2,959
Loss on assets held for sale		1,618		2,425		1,618		2,425
Loss on leases		-		-		3,715		-
Other professional fees		1,404		-		2,217		-
Stock compensation		2,166		1,715		7,668		7,740
Loss on disposals of long-lived assets		148		537		383		554
Transition services costs		659		-		3,798		2,403
Adjusted EBITDA	$	31,393	$	25,690	$	72,298	$	59,591

GAAP Outlook Net Income to Outlook Adjusted EBITDA:
The following table sets forth the reconciliation of the Company's outlook GAAP net income to the calculation of outlook adjusted EBITDA for the three and twelve months ending December 31, 2024:


	Three Months Ending				Twelve Months Ending
	March 31, 2025				December 31, 2025
(in thousands, except per share data)	Low		High		Low		High
Net income available to common stockholders	$	1,696	$	3,096	$	18,638	$	25,638
Preferred dividends		1,535		1,535		6,085		6,085
Net Income		3,231		4,631		24,723		31,723
Income tax expense		1,385		1,985		10,595		13,595
Interest expense, net		1,366		1,366		8,332		8,332
Loss on minority investment		-		-		-		-
Depreciation and amortization		4,131		4,131		18,124		18,124
EBITDA		10,113		12,113		61,774		71,774
Stock compensation		1,902		1,902		7,349		7,349
Professional Fees		1,465		1,465		5,077		5,077
Other - loss on lease/assets/disposals		20		20		20		20
IT Transition services cost		-		-		781		781
Adjusted EBITDA	$	13,500	$	15,500	$	75,000	$	85,000
EPS		$ 0.09		$ 0.17		$ 1.00		$ 1.38

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SOURCE American Public Education, Inc.

FAQ

What was APEI's revenue growth in Q4 2024?

APEI's consolidated revenue grew 7.4% year-over-year to $164.1 million in Q4 2024.

How much did APEI's Adjusted EBITDA improve in Q4 2024?

Adjusted EBITDA increased to $31.4 million in Q4 2024, up from $25.7 million in Q4 2023.

What is APEI's revenue guidance for full-year 2025?

APEI projects full-year 2025 revenue between $650 million and $660 million.

What strategic changes is APEI implementing in 2025?

APEI plans to simplify operations by closing underperforming campuses, selling buildings, and terminating several long-term contracts.

How did Rasmussen University's enrollment change for Q1 2025?

Rasmussen University's Q1 2025 enrollments increased 6.8% to 14,500 students compared to Q1 2024.

American Public Education Reports Fourth Quarter and Full Year 2024 Financial Results

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FAQ

What was APEI's revenue growth in Q4 2024?

How much did APEI's Adjusted EBITDA improve in Q4 2024?

What is APEI's revenue guidance for full-year 2025?

What strategic changes is APEI implementing in 2025?

How did Rasmussen University's enrollment change for Q1 2025?

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How much did APEI's Adjusted EBITDA improve in Q4 2024?

What is APEI's revenue guidance for full-year 2025?

What strategic changes is APEI implementing in 2025?

How did Rasmussen University's enrollment change for Q1 2025?

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