American Public Education Reports Fourth Quarter and Full-Year 2012 Results

  American Public Education Reports Fourth Quarter and Full-Year 2012 Results

Business Wire

CHARLES TOWN, W.Va. -- February 28, 2013

American Public Education, Inc. (NASDAQ: APEI) – parent company of online
learning provider American Public University System (APUS), which operates
through American Military University (AMU) and American Public University
(APU) – announced financial results for the quarter and year ended December
31, 2012.

Recent Highlights:

  *Net course registrations ^ increased to approximately 105,300 in the
    fourth quarter of 2012, a year-over-year increase of 10%.
  *Net course registrations by new students in the fourth quarter of 2012
    were approximately 22,600, a decrease of approximately 8% over the same
    period of 2011.
  *Fourth quarter 2012 revenues increased 14% to $86.0 million, compared to
    $75.7 million in the fourth quarter of 2011.
  *Income from operations before interest income and income taxes in the
    fourth quarter of 2012 increased 8% to $21.4 million, compared to $19.8
    million in the same period of 2011.
  *Net income for the fourth quarter of 2012 was $13.2 million, or $0.74 per
    diluted share, compared to $13.0 million, or $0.71 per diluted share, in
    the same period of 2011.
  *American Public University System received approval from The Higher
    Learning Commission to offer a Bachelor of Science in Electrical
    Engineering.

Financial and Other Results:

Total revenues for the fourth quarter of 2012 increased 14% to $86.0 million,
compared to total revenues of $75.7 million in the fourth quarter of 2011.
Income from operations before interest income and income taxes in the fourth
quarter of 2012 increased 8% to $21.4 million, compared to $19.8 million in
the same period of 2011. Stock-based compensation expense reduced operating
income by $947,000 in the fourth quarter of 2012, and $769,000 in the fourth
quarter of 2011.

Net income for the fourth quarter of 2012 was $13.2 million, or $0.74 per
diluted share, which includes $0.03 per diluted share in stock-based
compensation expense, net of tax. This compares to net income of $13.0
million, or $0.71 per diluted share for the fourth quarter of 2011, including
$0.03 per diluted share in stock-based compensation expense, net of tax. The
weighted average diluted shares outstanding for the fourth quarter of 2012 and
2011 were approximately 17.8 million and 18.2 million, respectively.

For the twelve months ended December 31, 2012, total revenues were $313.5
million, an increase of 20% compared to total revenues of $260.4 million in
the same period of 2011. Income from operations before interest income and
income tax for the twelve months ended December 31, 2012 increased to $68.8
million, compared to $62.9 million in the same period of 2011. Stock-based
compensation expense reduced each period's operating income by $3.8 million
and $3.2 million, respectively.

Net income for the twelve months ended December 31, 2012 increased to $42.3
million, or $2.35 per diluted share, which includes $0.13 per diluted share in
stock-based compensation expense, net of tax. This compares to net income of
$40.8 million, or $2.23 per diluted share in the same period of 2011,
including $0.11 per diluted share in stock-based compensation expense, net of
tax. Net income for the full year 2011 included a tax benefit of approximately
$1.8 million, or $0.10 per diluted share, resulting from state tax, and
research and development tax credits recorded during the third quarter of
2011. The weighted average diluted shares outstanding for the twelve months
ended December 31, 2012 and 2011 were approximately 18.0 million and 18.3
million, respectively.

Total cash and cash equivalents as of December 31, 2012 were approximately
$114.9 million with no long-term debt. Cash from operations for the twelve
months ended December 31, 2012 was approximately $52.9 million, compared to
$70.4 million in the same period of 2011. Capital expenditures were
approximately $35.0 million for the twelve months ended December 31, 2012,
compared to $24.9 million in the prior year period. Depreciation and
amortization was $11.1 million for the twelve months ended December 31, 2012
and $9.2 million for the same period of 2011.

                                                            
Net Course Registrations:
For the three months ended December
31,
                                          2012          2011          % Change
Net Course Registrations by New           22,600        24,600        -8%
Students
Net Course Registrations                  105,300       95,800        10%
                                                                      
For the twelve months ended
December 31,
                                          2012          2011          % Change
Net Course Registrations by New           86,700        85,200        2%
Students
Net Course Registrations                  402,200       343,700       17%
                                                                      

Note: Net course registrations represent the aggregate number of classes in
which students remain enrolled after the date by which they may drop the
course without financial penalty. Net course registrations and net course
registration growth rates include registrations for certain one-credit courses
(non-lab courses) and other non-credit registrations in the current and prior
year periods.

First Quarter 2013 Outlook:

The following statements are based on current expectations. These statements
are forward-looking and actual results may differ materially. The Company
undertakes no obligation to update publicly any forward-looking statements for
any reason.

American Public Education anticipates first quarter 2013 net course
registrations by new students to decline between -7% and -5% year-over-year;
net course registrations to increase between approximately 7% and 10%
year-over-year; revenues to increase between approximately 9% and 13% over the
prior year period; and net income to be between $0.55 and $0.58 per diluted
share.

Webcast:

A live webcast of the Company’s fourth quarter and full-year earnings
conference call will be broadcast today at 5:00 p.m. Eastern time. This call
will be open to listeners who log in through the Company's investor relations
website, www.AmericanPublicEducation.com.

A replay of the live webcast will also be available starting approximately one
hour after the conclusion of the live conference call. The replay will be
archived and available to listeners for one year.

American Public Education, Inc.

American Public Education, Inc. (NASDAQ: APEI) is an online provider of higher
education focused primarily on serving the military and public service
communities. American Public University System (APUS), wholly owned by APEI,
operates through American Military University (AMU) and American Public
University (APU). APUS serves approximately 127,000 adult learners worldwide
and offers 87 degree programs in fields ranging from homeland security,
military studies, intelligence, and criminal justice to technology, business
administration, public health, and liberal arts. Nationally recognized for its
best practices in online higher education, APUS provides an affordable
education through classes taught by experienced faculty who are committed to
the academic achievement of their students.

American Public University System is accredited by The Higher Learning
Commission and is a member of the North Central Association of Colleges and
Schools (www.ncahlc.org). For more information about APUS graduation rates,
median debt of students who completed programs, and other important
information, visit www.apus.edu/disclosure.

Forward Looking Statements

Statements made in this press release regardingAmerican Public Education,
Inc., or its subsidiaries,that are not historical facts are forward-looking
statements based on current expectations, assumptions, estimates and
projections aboutAmerican Public Education, Inc.and the industry. These
forward-looking statements are subject to risks and uncertainties that could
cause actual future events or results to differ materially from such
statements. Forward-looking statements can be identified by words such as
"anticipate", "believe", "could", "estimate", "expect", "intend", "may",
"should", "will" and "would". These forward-looking statements include,
without limitation, statements regarding expected growth, expected revenues
and expected earnings. Actual results could differ materially from those
expressed or implied by these forward-looking statements as a result of
various factors, including the various risks described in the "Risk Factors"
section and elsewhere in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2012 and other filings with the SEC. The Company undertakes
no obligation to update publicly any forward-looking statements for any
reason, even if new information becomes available or other events occur in the
future.


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


                                                     Three Months Ended
                                                       December 31,
                                                       2012         2011
                                                       (Unaudited)
                                                                        
Revenues                                               $ 86,000      $ 75,667
Costs and expenses:
Instructional costs and services                         29,654         26,152
Selling and promotional                                  16,485         12,403
General and administrative                               15,424         14,769
Depreciation and amortization                           3,015        2,500
                                                                        
Total costs and expenses                                64,578       55,824
                                                                        
Income from operations before interest income and        21,422         19,843
income taxes
Interest income, net                                    118          22
                                                                        
Income before income taxes                               21,540         19,865
Income tax expense                                       8,279          6,880
Investment, net of taxes                                (86    )      -
                                                                        
Net income                                             $ 13,175      $ 12,985
                                                                        
                                                                        
Net Income per common share:
Basic                                                   0.73        $ 0.73
                                                                        
Diluted                                                 0.74        $ 0.71
                                                                        
Weighted average number of common shares:
Basic                                                   18,019       17,844
                                                                        
Diluted                                                 17,836       18,226
                                                                        


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


                                                   Twelve Months Ended
                                                     December 31,
                                                     2012          2011
                                                     (Unaudited)
                                                                       
Revenues                                             $ 313,516      $ 260,377
Costs and expenses:
Instructional costs and services                       110,192         95,216
Selling and promotional                                59,761          44,713
General and administrative                             63,615          48,350
Depreciation and amortization                         11,146        9,239
                                                                       
Total costs and expenses                              244,714       197,518
                                                                       
Income from operations before interest income          68,802          62,859
and income taxes
Interest income, net                                  135           109
                                                                       
Income before income taxes                             68,937          62,968
Income tax expense                                     26,528          22,211
Investment, net of taxes                              (86     )      -
                                                                       
Net income                                           $ 42,323       $ 40,757
                                                                       
                                                                       
Net Income per common share:
Basic                                                $ 2.38         $ 2.28
                                                                       
Diluted                                              $ 2.35         $ 2.23
                                                                       
Weighted average number of common shares:
Basic                                                 17,772        17,877
                                                                       
Diluted                                               18,041        18,295
                                                                       

Contact:

American Public Education, Inc.
Harry T. Wilkins, CPA
Executive Vice President and Chief Financial Officer
304-724-3722
or
Christopher L. Symanoskie
Vice President, Investor Relations
703-334-3880
 
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