On August 6, 2024, American Public Education Inc (APEI, Financial) released its 8-K filing detailing the financial results for the second quarter ended June 30, 2024. American Public Education Inc provides online and on-campus postsecondary education, offering a variety of undergraduate and graduate degree programs across multiple fields of study. The company operates through three segments: American Public University System (APUS), Rasmussen University (RU), and Hondros College of Nursing (HCN).
Q2 2024 Financial Highlights
American Public Education Inc reported revenues of $152.9 million for Q2 2024, falling short of the analyst estimate of $154.09 million. The company also reported a net income of $0.37 million, a significant improvement from the net loss of $51.2 million in Q2 2023. The earnings per share (EPS) for the quarter stood at $0.01, aligning with the analyst estimate.
Segment Performance
The APUS segment, which is the key revenue generator, reported net course registrations of 89,800, reflecting a 1.7% increase from the previous year. Rasmussen University saw a slight decline in total student enrollment, down 2.2% to 13,600. However, the Hondros College of Nursing segment experienced a robust 9.4% increase in total student enrollment, reaching 3,300.
Income Statement Overview
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenues | $152.9 million | $147.2 million |
| Instructional Costs and Services | $76.2 million | $75.0 million |
| Selling and Promotional Expenses | $33.8 million | $33.0 million |
| General and Administrative Expenses | $34.4 million | $32.5 million |
| Net Income (Loss) | $0.37 million | $(51.2) million |
Management Commentary
"I am very pleased with the progress we continue to make with the stabilization of Rasmussen, resulting in third quarter 2024 total enrollments slightly above third quarter of 2023, due to improving trends within both Rasmussen’s on-Ground and online units,” said Angela Selden, President and Chief Executive Officer of APEI. “In the second quarter of 2024, with APUS delivering continued growth in quarterly total registrations and Hondros reaching an all-time high level of nursing enrollments, APEI delivered Adjusted EBITDA near the mid-point of the projected range.”
Balance Sheet and Liquidity
APEI's balance sheet remains robust, with a focus on maintaining liquidity and operational efficiency. The company reported total costs and expenses of $150.7 million, a significant reduction from $212.5 million in Q2 2023, primarily due to the absence of impairment charges that were present in the previous year.
Future Outlook
For the third quarter of 2024, APEI anticipates consolidated revenue between $152.0 million and $155.0 million, with a net loss/income available to common stockholders ranging from $(1.2) million to $1.0 million. The company also projects adjusted EBITDA between $9.0 million and $12.0 million. For the full year 2024, APEI expects consolidated revenue between $620 million and $630 million, with net income available to common stockholders ranging from $6 million to $13 million.
American Public Education Inc's strong Q2 2024 performance, driven by growth in key segments and effective cost management, positions the company well for continued success in the education sector. For more detailed financial information, readers are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from American Public Education Inc for further details.
