American Public Education Raises Full-Year Guidance on Margin Expansion
The education provider reported consolidated revenue of $171.7 million for the second quarter, representing a 5.5% increase year-over-year [1].
American Public Education (APEI), the provider of online and campus-based higher education, reported a return to profitability in the second quarter as margins expanded across its core segments.
Consolidated revenue rose 5.5% year-over-year to $171.7 million. Growth would have been 7.8% excluding the sale of Graduate School USA. Net income available to common stockholders swung to a profit of $9.8 million from a loss of $0.3 million in the same period last year.
Profitability gains were driven by a 36.8% increase in adjusted EBITDA, which reached $20.7 million compared to $15.1 million in the prior-year quarter. The adjusted EBITDA margin expanded to 12% from 9% in the second quarter of 2024.
The Health+ segment revenue grew 11.0% year-over-year to $86.2 million, attributed to modest tuition increases and higher enrollments. Total student enrollment in the segment increased 6.6% to 19,600, up from 18,300 in the prior-year period.
Revenue for the Military+ segment rose 4.7% to $85.5 million, primarily due to increased net course registrations. Those registrations increased 2.0% year-over-year to 98,300, though this growth slowed from the 4.0% increase recorded in the first quarter.
American Public Education raised its full-year 2024 guidance for revenue to a range of $690.0 million to $698.0 million, up from the previous range of $686.0 million to $696.0 million. The company also increased its net income forecast to between $46.5 million and $52.5 million and its adjusted EBITDA guidance to between $96.0 million and $104.0 million.
Following the end of the quarter, the company completed the institutional combination of Rasmussen University, Hondros College of Nursing, and American Public University System into a single HLC-accredited institution.
Total cash, cash equivalents, restricted cash, and short-term investments increased 26.2% to $222.8 million as of June 30, 2024, compared to $176.5 million at the end of 2023. Cash flows from operations decreased to $12.1 million from $14.8 million in the prior-year quarter.