American Public Education Inc (APEI) Q1 2025 earnings call Highlights: strong financial …

Appearance date: May 12, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• American Public Education Inc (Nasdaq: Aape) exceeded the financial guidelines in the first quarter of 2025 with revenue, adjusted EBITDA margin and net result that exceeds expectations.

• The Rasmussen College showed a significant improvement, with an increase in the second quarter compared to the previous year by 8% and a positive $ 5 million EBITDA swing compared to a loss in the previous year.

• APEI's net result for regular shareholders increased from a negative loss of net $ 6.2 million to USD 0.5 million, which shows a strong financial turn.

• The company improves the operational lever through increased enrollment and disciplined cost management, with sales of 6.6% and the adjusted EBITDA rose by almost 25%.

• APEI plans to include preferred shares, which saves the dividend costs of around 6 million US dollars annually from 2026 and contribute to future profitability.

• The Graduate School USA faces challenges based on state employees of employees and budget uncertainties, whereby APEI's sales advice has an impact on the year as a whole.

• The guidelines of the APEI in the second quarter contain a net loss due to a redemption premium of $ 2.9 million for preferred shares and USD 1.7 million in connection with institutional consolidation.

• Due to the changing priorities and guidelines of the federal government, the company experiences the income expectations at the graduate school.

• The guidelines of Aepei are potential disadvantages of the graduate school, which indicates the continuing uncertainty in this segment.

• Despite the positive registration trends, Acei faces challenges in optimizing its program mix and combating mixed changes in programs in Hondros that affect profitability.

Q: Can you outline whether there was a lead in the first quarter of the army and air force study fees for tuition fees for tuition fees and expect a catch-up in the second quarter? A: Rick Sunderland, CFO: The APS team has managed to minimize the effects of the portal failure. The failure ended shortly before the end of the quarter and allowed us to regain registrations that may have been lost. The edge was not affected and we expect a slight improvement in the APS registration guidelines for the second quarter.

Q: You mentioned a higher graduate school in the EBITDA instructions. Can you set the instructions for losses on the Graduate School in 2025? A: Angela Selden, CEO: The situation develops, and although we cannot predict the exact results, our adapted guide includes what we believe in the disadvantage of the graduate school. We manage the costs aggressively and explore options for the way forward.