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American Public (APEI) Posts Q3 Loss, Enrollment Up Y/Y
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American Public Education, Inc. (APEI - Free Report) reported better-than-expected results in third-quarter 2022. The top and the bottom line surpassed the Zacks Consensus Estimate on the back of APUS and HCN segments’ contributions, acquisitions and cost-saving moves.
Yet, APEI’s loss was wider than the year-ago period’s levels despite revenue growth.
Delving Deeper
The company reported an adjusted loss of 20 cents per share, narrower than the consensus mark of 25 cents. However, the metric widened from the year-ago quarter’s figure of 1 cent.
American Public Education, Inc. Price, Consensus and EPS Surprise
Total revenues of $149.5 million topped the consensus mark of $147 million by almost 2% and increased 52.2% from the year-ago period’s levels. The upside was backed by the acquisition of Rasmussen University (“RU”) and GSUSA. Also, the solid contribution from APUS and HCN segments added to the positives.
Total costs and expenses increased more than 53% year over year to $150.6 million due to the inclusion of RU and GSUSA. Adjusted EBITDA increased 2.2% year over year to $9.46 million.
Segment Discussion
The company now operates within three segments, namely, the American Public University System’s (“APUS”), RU and Hondros College of Nursing segment (“HCN”).
APUS: Revenues of $68.7 million rose 4.3% from the year-ago period’s levels. APUS’ total net course registration increased 3.2% from the year-ago period’s levels to 85,800 in the third quarter, driven by strong active-duty enrollment. In the quarter, military registrations were up 8% and army registrations rose 14%.
RU: The segment reported revenues of $61.5 million for the quarter, up from $21.1 million reported a year ago. RU’s total student enrollment fell 8% from the prior-year period’s levels to 15,000 due to an 8% decline in both nursing and non-nursing enrollment.
HCN: Segment’s revenues inched up 1.5% year over year to $11.4 million. Total student enrollment at HCN increased 3.7% from the prior-year quarter’s levels to 2,410.
Financials
At the third quarter-end, American Public had total cash and cash equivalents of $185.5 million compared with $149.6 million at the 2021-end.
Q4 Guidance
APEI expects total revenues to range within negative 2-0% year over year to $151.2-$154.2 million. It anticipates the adjusted loss within 13-20 cents per share, indicating a decline of 126-140% year over year. Adjusted EBITDA is anticipated within $13.9-$16.7 million, suggesting a decline of 43-53% year over year.
APUS’ total net course registrations are likely to be 84,000-87,500, reflecting a decline of 3% to growth of 1% year over year. HCN’s total student enrollment is expected to increase 4% from the prior year’s tally to 2,600. RU’s student enrollment will likely fall 9% from the year-ago quarter’s figure to 15,600. Nursing student enrollment is likely to fall 12% to 7,600 and non-nursing student enrollment is expected to decline 5% to 8,000 year over year.
2022 Guidance
For the full year, the company expects total revenues of $605.1-$608.1 million, up 44-45% year over year. It anticipates the adjusted loss within $5.94-$5.87 per share versus year-ago adjusted earnings of 97 cents. Adjusted EBITDA is anticipated within $55.2-$58 million, suggesting a decline of 10-15% year over year.
APUS’ total net course registrations are likely to range between 347,300-350,800, reflecting a growth of 1-2% year over year.
A Look at Some Recent Consumer Discretionary Releases
Adtalem Global Education Inc. (ATGE - Free Report) reported impressive results for first-quarter fiscal 2023. Earnings and revenues surpassed their respective Zacks Consensus Estimate and increased year over year on the back of the Walden acquisition and cost synergies.
For fiscal 2023, Adtalem expects revenues within $1,380-$1,450 million. The company expects adjusted earnings per share (EPS) within $3.95-$4.20.
Strategic Education, Inc. or SEI (STRA - Free Report) reported tepid third-quarter 2022 results. Although quarterly earnings and revenues topped their respective Zacks Consensus Estimate, both declined year over year. The downside was caused by lower contributions from USHE and ANZ segments.
STRA expects capital expenditures for 2022 to be approximately $45 million, down from the prior projection of $50 million.
Leggett & Platt, Incorporated (LEG - Free Report) reported better-than-expected results for third-quarter 2022, with earnings and net sales surpassing the Zacks Consensus Estimate. However, the metrics declined on a year-over-year basis.
Despite experiencing demand and margin recovery in the Specialized Products segment, net sales declined due to a stable U.S. bedding market and slowness in other markets such as European bedding, home furniture, work furniture and steel.
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American Public (APEI) Posts Q3 Loss, Enrollment Up Y/Y
American Public Education, Inc. (APEI - Free Report) reported better-than-expected results in third-quarter 2022. The top and the bottom line surpassed the Zacks Consensus Estimate on the back of APUS and HCN segments’ contributions, acquisitions and cost-saving moves.
Yet, APEI’s loss was wider than the year-ago period’s levels despite revenue growth.
Delving Deeper
The company reported an adjusted loss of 20 cents per share, narrower than the consensus mark of 25 cents. However, the metric widened from the year-ago quarter’s figure of 1 cent.
American Public Education, Inc. Price, Consensus and EPS Surprise
American Public Education, Inc. price-consensus-eps-surprise-chart | American Public Education, Inc. Quote
Total revenues of $149.5 million topped the consensus mark of $147 million by almost 2% and increased 52.2% from the year-ago period’s levels. The upside was backed by the acquisition of Rasmussen University (“RU”) and GSUSA. Also, the solid contribution from APUS and HCN segments added to the positives.
Total costs and expenses increased more than 53% year over year to $150.6 million due to the inclusion of RU and GSUSA. Adjusted EBITDA increased 2.2% year over year to $9.46 million.
Segment Discussion
The company now operates within three segments, namely, the American Public University System’s (“APUS”), RU and Hondros College of Nursing segment (“HCN”).
APUS: Revenues of $68.7 million rose 4.3% from the year-ago period’s levels. APUS’ total net course registration increased 3.2% from the year-ago period’s levels to 85,800 in the third quarter, driven by strong active-duty enrollment. In the quarter, military registrations were up 8% and army registrations rose 14%.
RU: The segment reported revenues of $61.5 million for the quarter, up from $21.1 million reported a year ago. RU’s total student enrollment fell 8% from the prior-year period’s levels to 15,000 due to an 8% decline in both nursing and non-nursing enrollment.
HCN: Segment’s revenues inched up 1.5% year over year to $11.4 million. Total student enrollment at HCN increased 3.7% from the prior-year quarter’s levels to 2,410.
Financials
At the third quarter-end, American Public had total cash and cash equivalents of $185.5 million compared with $149.6 million at the 2021-end.
Q4 Guidance
APEI expects total revenues to range within negative 2-0% year over year to $151.2-$154.2 million. It anticipates the adjusted loss within 13-20 cents per share, indicating a decline of 126-140% year over year. Adjusted EBITDA is anticipated within $13.9-$16.7 million, suggesting a decline of 43-53% year over year.
APUS’ total net course registrations are likely to be 84,000-87,500, reflecting a decline of 3% to growth of 1% year over year. HCN’s total student enrollment is expected to increase 4% from the prior year’s tally to 2,600. RU’s student enrollment will likely fall 9% from the year-ago quarter’s figure to 15,600. Nursing student enrollment is likely to fall 12% to 7,600 and non-nursing student enrollment is expected to decline 5% to 8,000 year over year.
2022 Guidance
For the full year, the company expects total revenues of $605.1-$608.1 million, up 44-45% year over year. It anticipates the adjusted loss within $5.94-$5.87 per share versus year-ago adjusted earnings of 97 cents. Adjusted EBITDA is anticipated within $55.2-$58 million, suggesting a decline of 10-15% year over year.
APUS’ total net course registrations are likely to range between 347,300-350,800, reflecting a growth of 1-2% year over year.
Zacks Rank
APEI currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A Look at Some Recent Consumer Discretionary Releases
Adtalem Global Education Inc. (ATGE - Free Report) reported impressive results for first-quarter fiscal 2023. Earnings and revenues surpassed their respective Zacks Consensus Estimate and increased year over year on the back of the Walden acquisition and cost synergies.
For fiscal 2023, Adtalem expects revenues within $1,380-$1,450 million. The company expects adjusted earnings per share (EPS) within $3.95-$4.20.
Strategic Education, Inc. or SEI (STRA - Free Report) reported tepid third-quarter 2022 results. Although quarterly earnings and revenues topped their respective Zacks Consensus Estimate, both declined year over year. The downside was caused by lower contributions from USHE and ANZ segments.
STRA expects capital expenditures for 2022 to be approximately $45 million, down from the prior projection of $50 million.
Leggett & Platt, Incorporated (LEG - Free Report) reported better-than-expected results for third-quarter 2022, with earnings and net sales surpassing the Zacks Consensus Estimate. However, the metrics declined on a year-over-year basis.
Despite experiencing demand and margin recovery in the Specialized Products segment, net sales declined due to a stable U.S. bedding market and slowness in other markets such as European bedding, home furniture, work furniture and steel.