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American Public's (APEI) Q4 Earnings & Revenues Beat, Stock Down
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American Public Education, Inc. (APEI - Free Report) delivered strong earnings in fourth-quarter 2023. The top and bottom lines handily surpassed the Zacks Consensus Estimate on the back of contributions from the American Public University System (“APUS”) and Hondros College of Nursing (“HCN”) segments.
Shares of this post-secondary education provider lost 1.3% during the trading session and 0.6% in the after-hours trading session on Mar 5. Investors’ sentiments might have been hurt by tepid guidance for 2024.
Delving Deeper
The company reported adjusted earnings per share of 64 cents, which beat the consensus mark of 14 cents by a whopping 357.1%. In the year-ago period, the company incurred a loss of 35 cents per share.
Total revenues of $152.8 million topped the consensus mark of $151 million by 1.5% and inched up 0.2% from the year-ago period. Solid performances of the APUS and HCN segments led to the increase. The upside was partially offset by the lower contributions from the Rasmussen University (“RU”) segment and the Graduate School USA ("GSUSA") included in the Corporate and Other segment.
Total costs and expenses decreased 10.4% year over year to $136.9 million. The decline was due to advertising, depreciation and amortization, employee compensation and Collegis transition costs.
Adjusted EBITDA increased 66.9% year over year to $25.7 million. Adjusted EBITDA margin of 16.8% expanded 670 bps year over year.
American Public Education, Inc. Price, Consensus and EPS Surprise
APUS: Revenues of $79.4 million rose 8.1% from the year-ago period. The increase was primarily due to a 4% increase in net course registrations. The rise in APUS Segment revenues was chiefly driven by a 4% uptick in net course registrations, coupled with tuition and fee hikes introduced during the second and third quarters of 2023.
APUS’ total net course registration increased 4% from a year ago to 90,700. APUS' military prowess has led to a 5% increase in active-duty registrations, while veteran enrollments demonstrate sustained momentum with a remarkable 13% year-over-year growth. This underscores the robust military legacy AMU has established.
Adjusted EBITDA margin expanded to 35% from 28% a year ago.
RU: The segment reported revenues of $52.6 million for the quarter, down 13.4% from a year ago. This was due to a 9.6% fall in total student enrollment, partially offset by increases in the tuition of certain programs implemented in January 2023.
RU’s total student enrollment fell to 14,100. In the quarter, RU’s EBITDA swung to positive territory, totaling $0.4 million against a loss in the year-ago quarter. This improvement was attributed to reduced advertising expenses and labor savings resulting from previous workforce reductions.
HCN: Segment’s revenues rose 24.9% year over year to $15.8 million. The increase was backed by growth in total student enrollment and tuition fees.
Total student enrollment at HCN increased 19.2% from the prior-year quarter’s levels to 3,100. During the quarter, Hondros attained a positive EBITDA of $1.1 million, contrasting with an EBITDA loss of $0.7 million in the corresponding quarter of the previous year.
GSUSA revenues decreased 10.3% year over year to $5.1 million due to lower enrollments in the quarter. This was included in the Corporate and Other segment.
2023 Highlights
Total revenues came in at $600.5 million, down from $606.3 million in 2022. In 2023, loss per share was $2.93, which is narrower than the year-ago loss of $6.08 per share.
Financials
At the end of 2023, American Public had total cash, cash equivalents, and restricted cash of $144.3 million, up from $129.6 million at 2022-end. Adjusted EBITDA was $59.6 million in 2023, up from $56.7 million in 2022.
Q1 Guidance
APEI expects total revenues to grow 1-2% year over year to $151-$153 million.
The company anticipates adjusted loss in the range of 25-17 cents per share.
Adjusted EBITDA is expected to be in the range of $8-$10 million, suggesting growth of 14-43% year over year.
APUS’ total net course registrations are likely to be in the range of 97,000-99,000, reflecting growth of 1-3% year over year.
HCN’s total enrollment is expected to increase 22% from the prior year’s figure to 3,300 students.
RU’s student enrollment will likely fall 6% from the year-ago quarter’s figure to 13,500. Within RU, on-ground Healthcare enrollment is likely to decline 11% to 6,300, while Online enrollment is expected to be at the same level compared with the first quarter of 2023.
2024 Guidance
Total revenues are expected to grow 2-3% year over year to $610-$620 million. Adjusted EBITDA is expected to be between $55 and $65 million, reflecting down 8% to up 9% growth rate year over year. Capital expenditures are expected to be $17-$20 million, reflecting 22%-44% growth.
Strategic Education, Inc. (STRA - Free Report) , or SEI, reported impressive results for fourth-quarter 2023. Its quarterly earnings and revenues topped the Zacks Consensus Estimate and increased year over year.
Growth across STRA’s three segments, led by continued enrollment growth in U.S. Higher Education, was driven significantly by employer-affiliated enrollment, strong growth in Education Technology Services (earlier known as Alternative Learning) and improving performance in Australia/New Zealand, drove the result.
Universal Technical Institute, Inc. (UTI - Free Report) reported impressive first-quarter fiscal 2024 results. Quarterly earnings and revenues surpassed the Zacks Consensus Estimate. On a year-over-year basis, the top and bottom lines increased impressively.
UTI outperformed its financial expectations in the first quarter, advancing its growth, diversification and optimization strategy. It reported strong year-over-year new student start growth in the UTI and Concorde segments. The firm made progress with launching and ramping up new programs. The company is optimistic about its fiscal 2024 performance with a solid multi-divisional foundation and ability to deliver on expectations.
Adtalem Global Education Inc. (ATGE - Free Report) reported impressive results for second-quarter fiscal 2024. Earnings and revenues surpassed the respective Zacks Consensus Estimate and increased year over year.
ATGE’s quarterly results reflect solid enrollment growth along with the efficient execution of its Growth with Purpose strategy. The continuous focus on this growth strategy sparked organic revenue growth, improved operational efficiencies and yielded outstanding academic outcomes. Owing to the quarter’s uptrend, ATGE raised its fiscal 2024 guidance.
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American Public's (APEI) Q4 Earnings & Revenues Beat, Stock Down
American Public Education, Inc. (APEI - Free Report) delivered strong earnings in fourth-quarter 2023. The top and bottom lines handily surpassed the Zacks Consensus Estimate on the back of contributions from the American Public University System (“APUS”) and Hondros College of Nursing (“HCN”) segments.
Shares of this post-secondary education provider lost 1.3% during the trading session and 0.6% in the after-hours trading session on Mar 5. Investors’ sentiments might have been hurt by tepid guidance for 2024.
Delving Deeper
The company reported adjusted earnings per share of 64 cents, which beat the consensus mark of 14 cents by a whopping 357.1%. In the year-ago period, the company incurred a loss of 35 cents per share.
Total revenues of $152.8 million topped the consensus mark of $151 million by 1.5% and inched up 0.2% from the year-ago period. Solid performances of the APUS and HCN segments led to the increase. The upside was partially offset by the lower contributions from the Rasmussen University (“RU”) segment and the Graduate School USA ("GSUSA") included in the Corporate and Other segment.
Total costs and expenses decreased 10.4% year over year to $136.9 million. The decline was due to advertising, depreciation and amortization, employee compensation and Collegis transition costs.
Adjusted EBITDA increased 66.9% year over year to $25.7 million. Adjusted EBITDA margin of 16.8% expanded 670 bps year over year.
American Public Education, Inc. Price, Consensus and EPS Surprise
American Public Education, Inc. price-consensus-eps-surprise-chart | American Public Education, Inc. Quote
Segment Discussion
APUS: Revenues of $79.4 million rose 8.1% from the year-ago period. The increase was primarily due to a 4% increase in net course registrations. The rise in APUS Segment revenues was chiefly driven by a 4% uptick in net course registrations, coupled with tuition and fee hikes introduced during the second and third quarters of 2023.
APUS’ total net course registration increased 4% from a year ago to 90,700. APUS' military prowess has led to a 5% increase in active-duty registrations, while veteran enrollments demonstrate sustained momentum with a remarkable 13% year-over-year growth. This underscores the robust military legacy AMU has established.
Adjusted EBITDA margin expanded to 35% from 28% a year ago.
RU: The segment reported revenues of $52.6 million for the quarter, down 13.4% from a year ago. This was due to a 9.6% fall in total student enrollment, partially offset by increases in the tuition of certain programs implemented in January 2023.
RU’s total student enrollment fell to 14,100. In the quarter, RU’s EBITDA swung to positive territory, totaling $0.4 million against a loss in the year-ago quarter. This improvement was attributed to reduced advertising expenses and labor savings resulting from previous workforce reductions.
HCN: Segment’s revenues rose 24.9% year over year to $15.8 million. The increase was backed by growth in total student enrollment and tuition fees.
Total student enrollment at HCN increased 19.2% from the prior-year quarter’s levels to 3,100. During the quarter, Hondros attained a positive EBITDA of $1.1 million, contrasting with an EBITDA loss of $0.7 million in the corresponding quarter of the previous year.
GSUSA revenues decreased 10.3% year over year to $5.1 million due to lower enrollments in the quarter. This was included in the Corporate and Other segment.
2023 Highlights
Total revenues came in at $600.5 million, down from $606.3 million in 2022. In 2023, loss per share was $2.93, which is narrower than the year-ago loss of $6.08 per share.
Financials
At the end of 2023, American Public had total cash, cash equivalents, and restricted cash of $144.3 million, up from $129.6 million at 2022-end. Adjusted EBITDA was $59.6 million in 2023, up from $56.7 million in 2022.
Q1 Guidance
APEI expects total revenues to grow 1-2% year over year to $151-$153 million.
The company anticipates adjusted loss in the range of 25-17 cents per share.
Adjusted EBITDA is expected to be in the range of $8-$10 million, suggesting growth of 14-43% year over year.
APUS’ total net course registrations are likely to be in the range of 97,000-99,000, reflecting growth of 1-3% year over year.
HCN’s total enrollment is expected to increase 22% from the prior year’s figure to 3,300 students.
RU’s student enrollment will likely fall 6% from the year-ago quarter’s figure to 13,500. Within RU, on-ground Healthcare enrollment is likely to decline 11% to 6,300, while Online enrollment is expected to be at the same level compared with the first quarter of 2023.
2024 Guidance
Total revenues are expected to grow 2-3% year over year to $610-$620 million. Adjusted EBITDA is expected to be between $55 and $65 million, reflecting down 8% to up 9% growth rate year over year. Capital expenditures are expected to be $17-$20 million, reflecting 22%-44% growth.
Zacks Rank
APEI currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer Releases
Strategic Education, Inc. (STRA - Free Report) , or SEI, reported impressive results for fourth-quarter 2023. Its quarterly earnings and revenues topped the Zacks Consensus Estimate and increased year over year.
Growth across STRA’s three segments, led by continued enrollment growth in U.S. Higher Education, was driven significantly by employer-affiliated enrollment, strong growth in Education Technology Services (earlier known as Alternative Learning) and improving performance in Australia/New Zealand, drove the result.
Universal Technical Institute, Inc. (UTI - Free Report) reported impressive first-quarter fiscal 2024 results. Quarterly earnings and revenues surpassed the Zacks Consensus Estimate. On a year-over-year basis, the top and bottom lines increased impressively.
UTI outperformed its financial expectations in the first quarter, advancing its growth, diversification and optimization strategy. It reported strong year-over-year new student start growth in the UTI and Concorde segments. The firm made progress with launching and ramping up new programs. The company is optimistic about its fiscal 2024 performance with a solid multi-divisional foundation and ability to deliver on expectations.
Adtalem Global Education Inc. (ATGE - Free Report) reported impressive results for second-quarter fiscal 2024. Earnings and revenues surpassed the respective Zacks Consensus Estimate and increased year over year.
ATGE’s quarterly results reflect solid enrollment growth along with the efficient execution of its Growth with Purpose strategy. The continuous focus on this growth strategy sparked organic revenue growth, improved operational efficiencies and yielded outstanding academic outcomes. Owing to the quarter’s uptrend, ATGE raised its fiscal 2024 guidance.