The following is a summary of the American Public Education, Inc. (APEI) Q2 2024 Earnings Call Transcript:
Financial Performance:
APEI reported Q2 2024 revenue of $152.9 million, a growth of 3.9% year-over-year.
Adjusted EBITDA for the quarter rose 24% to $10.9 million, with an EBITDA margin improvement of 118 basis points to 7.2%.
The company anticipates full-year 2024 revenue between $620 million and $630 million, and adjusted EBITDA between $60 million and $70 million.Second quarter revenue growth was driven by increments at APUS, Hondros, and Rasmussen, partially offset by a decline at the graduate school.
Adjusted net loss for the quarter improved to $0.06 per share from a $0.25 loss in the previous period after adjusting for a substantial impairment charge taken last year.
Business Progress:
Positive turn in enrollments for Rasmussen, with a 2% revenue increase and reduced EBITDA loss, signaling a movement towards profitability.
APUS experienced a 1.7% increase in net course registrations, driving revenue growth.
Enrollment at Hondros College continues to show robust growth, with a 10% year-over-year increase to 3,100 students.
Rasmussen expects to expand its campus footprint following the lifting of Department of Education growth restrictions to address high demand for nursing and other clinical roles.
Opportunities:
Market demand in higher education, especially for service-minded sectors like nursing, presents significant growth opportunities for APEI, expected to reach about $173 billion by 2030.
Expansion plans for Rasmussen are set to address the critical shortage in nursing and other clinical roles, with a projected significant increase in demand for these professionals by 2031.
Risks:
Potential enrollment impacts due to infrastructure setbacks at a relocated Hondros campus in Ohio.
More details: American Public Education IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
