2022 Q2 Form 10-Q Financial Statement

#000120179222000006 Filed on May 10, 2022

View on sec.gov

Income Statement

Concept 2022 Q2 2022 Q1 2021 Q4
Revenue $149.6M $154.7M $154.0M
YoY Change 91.77% 74.77% 79.26%
Cost Of Revenue $72.09M $71.70M $67.37M
YoY Change 137.18% 121.84% 116.61%
Gross Profit $77.52M $83.05M $86.64M
YoY Change 62.79% 47.72% 58.06%
Gross Profit Margin 51.81% 53.67% 56.26%
Selling, General & Admin $65.77M $68.91M $60.77M
YoY Change 53.14% 60.53% 44.86%
% of Gross Profit 84.84% 82.97% 70.14%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $8.119M $8.148M $8.271M
YoY Change 221.54% 207.47% 173.87%
% of Gross Profit 10.47% 9.81% 9.55%
Operating Expenses $73.89M $68.91M $69.04M
YoY Change 72.04% 60.53% 53.49%
Operating Profit $3.631M $5.200M $17.60M
YoY Change 83.85% -51.11% 79.01%
Interest Expense -$3.390M -$3.355M -$3.110M
YoY Change -14225.0% -3042.98% -3555.56%
% of Operating Profit -93.36% -64.52% -17.67%
Other Income/Expense, Net
YoY Change
Pretax Income -$145.4M $6.378M $13.39M
YoY Change -7371.39% -40.68% 36.53%
Income Tax -$35.33M $1.040M $4.002M
% Of Pretax Income 16.31% 29.89%
Net Earnings -$110.0M $5.333M $9.381M
YoY Change -20821.09% -34.22% 32.67%
Net Earnings / Revenue -73.54% 3.45% 6.09%
Basic Earnings Per Share -$5.83 $0.28 $0.50
Diluted Earnings Per Share -$5.832M $0.28 $0.50
COMMON SHARES
Basic Shares Outstanding 18.86M shares 18.81M shares 18.71M shares
Diluted Shares Outstanding 18.91M shares 18.88M shares

Balance Sheet

Concept 2022 Q2 2022 Q1 2021 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $184.5M $170.9M $149.6M
YoY Change -41.78% -46.71% -34.29%
Cash & Equivalents $184.5M $170.9M $149.6M
Short-Term Investments
Other Short-Term Assets $14.63M $15.53M $11.68M
YoY Change 54.57% 66.96% 79.71%
Inventory
Prepaid Expenses $15.53M $11.68M
Receivables $26.82M $33.66M $36.03M
Other Receivables $4.765M $4.766M $5.303M
Total Short-Term Assets $230.7M $224.9M $202.6M
YoY Change -34.16% -34.54% -19.53%
LONG-TERM ASSETS
Property, Plant & Equipment $210.2M $100.1M $102.4M
YoY Change 219.38% 49.03% 49.66%
Goodwill $244.0M $243.5M
YoY Change 818.54% 816.64%
Intangibles $82.09M $85.08M
YoY Change 2186.54%
Long-Term Investments
YoY Change
Other Assets $43.87M $15.89M $14.04M
YoY Change 507.65% 184.66% 19.55%
Total Long-Term Assets $431.3M $546.5M $523.0M
YoY Change 264.15% 356.78% 338.7%
TOTAL ASSETS
Total Short-Term Assets $230.7M $224.9M $202.6M
Total Long-Term Assets $431.3M $546.5M $523.0M
Total Assets $662.1M $771.4M $725.6M
YoY Change 41.19% 66.54% 95.57%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $26.55M $11.27M $13.50M
YoY Change 771.35% 320.48% 259.25%
Accrued Expenses $32.26M $13.79M $10.82M
YoY Change 194.58% 29.93% -1.35%
Deferred Revenue $27.90M $21.80M
YoY Change 28.57% -1.36%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $8.856M $8.750M $8.750M
YoY Change
Total Short-Term Liabilities $95.06M $93.70M $83.68M
YoY Change 74.96% 85.59% 51.98%
LONG-TERM LIABILITIES
Long-Term Debt $148.8M $150.2M $151.8M
YoY Change
Other Long-Term Liabilities $102.2M $96.67M $69.49M
YoY Change 1312.98% 1139.32% 969.05%
Total Long-Term Liabilities $251.0M $150.2M $151.8M
YoY Change 3370.36% 1825.79%
TOTAL LIABILITIES
Total Short-Term Liabilities $95.06M $93.70M $83.68M
Total Long-Term Liabilities $251.0M $150.2M $151.8M
Total Liabilities $346.1M $348.2M $310.0M
YoY Change 426.01% 456.68% 383.67%
SHAREHOLDERS EQUITY
Retained Earnings $134.3M $128.9M
YoY Change 12.56% 15.97%
Common Stock $287.5M $286.6M
YoY Change 2.18% 46.4%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $316.0M $423.2M $415.6M
YoY Change
Total Liabilities & Shareholders Equity $662.1M $771.4M $725.6M
YoY Change 41.19% 66.54% 95.57%

Cashflow Statement

Concept 2022 Q2 2022 Q1 2021 Q4
OPERATING ACTIVITIES
Net Income -$110.0M $5.333M $9.381M
YoY Change -20821.09% -34.22% 32.67%
Depreciation, Depletion And Amortization $8.119M $8.148M $8.271M
YoY Change 221.54% 207.47% 173.87%
Cash From Operating Activities $20.14M $25.26M $15.69M
YoY Change -963.46% 124.97% 19507.5%
INVESTING ACTIVITIES
Capital Expenditures -$4.344M $2.965M -$6.015M
YoY Change -389.6% 94.04% 691.45%
Acquisitions
YoY Change
Other Investing Activities $11.00K $2.686M $672.0K
YoY Change 86.67%
Cash From Investing Activities -$4.333M -$279.0K -$5.343M
YoY Change 189.25% -81.74% 1235.75%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $1.444M
YoY Change -101.73%
Debt Paid & Issued, Net $2.216M
YoY Change
Cash From Financing Activities -2.227M -$3.660M -2.203M
YoY Change 6648.48% -104.39%
NET CHANGE
Cash From Operating Activities 20.14M $25.26M 15.69M
Cash From Investing Activities -4.333M -$279.0K -5.343M
Cash From Financing Activities -2.227M -$3.660M -2.203M
Net Change In Cash 13.58M $21.32M 8.140M
YoY Change -451.44% -77.11% -2643.75%
FREE CASH FLOW
Cash From Operating Activities $20.14M $25.26M $15.69M
Capital Expenditures -$4.344M $2.965M -$6.015M
Free Cash Flow $24.48M $22.29M $21.70M
YoY Change -738.83% 129.84% 2483.45%

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537000 USD
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2401000 USD
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2492000 USD
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CY2021Q1 apei Cash Paid For Acquisition Net Of Cash Acquired
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2965000 USD
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21316000 USD
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227686000 USD
CY2022Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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170943000 USD
CY2021Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2022Q1 us-gaap Nature Of Operations
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Nature of the Business<div style="text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">American Public Education, Inc., or APEI, which together with its subsidiaries is referred to as the “Company,” is a provider of online and campus-based postsecondary education and, with the acquisition of Graduate School USA, career learning to students through the following subsidiary institutions:</span></div><div style="text-indent:36pt"><span><br/></span></div><div style="padding-left:36pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">American Public University System, Inc., or APUS, provides online postsecondary education directed primarily at the needs of the military, military-affiliated, public service and service-minded communities through American Military University, or AMU, and American Public University, or APU. APUS is institutionally accredited by the Higher Learning Commission, or HLC.</span></div><div><span><br/></span></div><div style="padding-left:36pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">Rasmussen College, LLC, which is referred to herein as Rasmussen University, or RU, a nursing- and health sciences-focused institution, provides postsecondary education to students at its 23 campuses across six states and online. The Company completed the acquisition of RU, or the Rasmussen Acquisition, on September 1, 2021, or the RU Closing Date. Please refer to “Note 3. Acquisition Activity” for more information on this acquisition. The Consolidated Financial Statements do not include the operating results or financial position of RU for any periods prior to the RU Closing Date. RU is institutionally accredited by HLC.</span></div><div style="padding-left:36pt"><span><br/></span></div><div style="padding-left:36pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">National Education Seminars, Inc., which is referred to herein as Hondros College of Nursing, or HCN, provides nursing education to students enrolled at six campuses in Ohio and one campus in Indianapolis, Indiana, to serve the needs of the nursing and healthcare communities. HCN is institutionally accredited by the Accrediting Bureau for Health Education Schools, or ABHES. </span></div><div><span><br/></span></div><div style="padding-left:36pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">American Public Training LLC, which is referred to herein as Graduate School USA, or GSUSA, provides career learning in-person and online to the federal workforce through a catalog of over 300 courses specializing in foundational and continuing professional development, as well as leadership training to advance the performance of government agencies through the competency and career advancement of their employees. The Company completed the acquisition of substantially all the assets of GSUSA, or the GSUSA Acquisition, on January 1, 2022, or the GSUSA Closing Date. Please refer to “Note 3. Acquisition Activity” for more information on this acquisition. The Consolidated Financial Statements do not include the operating results or financial position of GSUSA for any periods prior to the GSUSA Closing Date. GSUSA is accredited by the Accrediting Council for Continuing Education and Training, or ACCET. </span></div><div><span><br/></span></div><div style="padding-left:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">GSUSA operates as a stand-alone subsidiary of APEI, however GSUSA does not meet the quantitative thresholds to qualify as a reportable segment; therefore, this operating segment is combined and presented within “Corporate and Other”. Please refer to “Note 9. Segment Information” for more information on the Company’s reporting segments. </span></div><div><span><br/></span></div><div style="text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> The Company’s subsidiary institutions are licensed or otherwise authorized by state authorities to offer postsecondary education programs to the extent the institutions believe such licenses or authorizations are required, and APUS, RU, and HCN are certified by the United States Department of Education, or ED, to participate in student financial aid programs authorized under Title IV of the Higher Education Act of 1965, as amended, or Title IV programs. During the third quarter of 2021, the Company revised its reportable segments, as discussed further in “Note 9. Segment Information”. Prior period segment disclosures have been restated to conform to the current period presentation.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">    The Company’s operations are organized into three reportable segments:</span></div><div style="text-indent:36pt"><span><br/></span></div><div style="padding-left:36pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%;padding-left:14.5pt">American Public University System Segment, </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">or</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%"> APUS Segment.</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%"> </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">This segment reflects the operational activities of APUS.</span></div><div><span><br/></span></div><div style="padding-left:36pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%;padding-left:14.5pt">Rasmussen University Segment, or RU Segment</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">. This segment reflects the operational activities of RU.</span></div><div><span><br/></span></div><div style="padding-left:36pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%;padding-left:14.5pt">Hondros College of Nursing Segment, </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">or</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%"> HCN Segment.</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> This segment reflects the operational activities of HCN.</span></div>Adjustments to reconcile segment results to the Consolidated Financial Statements are included in “Corporate and Other”. These adjustments include unallocated corporate activity and eliminations, which generally were previously reported within the APEI Segment, and, effective January 1, 2022, the operational activities of GSUSA.
CY2022Q1 apei Number Of Courses
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300 course
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3 segment
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2356000 USD
CY2021Q1 us-gaap Allocated Share Based Compensation Expense
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2180000 USD
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<div style="text-indent:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates</span></div><div><span><br/></span></div><div style="text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In preparing financial statements in conformity with GAAP, the Company is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company evaluates these estimates and judgments on an ongoing basis and bases its estimates on experience, current and expected future conditions, and various other assumptions that the Company believes are reasonable under the circumstances. Actual results may differ from those estimates under different assumptions or conditions, and the impact of such differences may be material to the Consolidated Financial Statements.</span></div>
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P3Y
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965000 USD
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CY2021Q1 us-gaap Operating Lease Expense
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30000.00 USD
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13453000 USD
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27373000 USD
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54721000 USD
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54721000 USD
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95547000 USD
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13453000 USD
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9500000 USD
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94582000 USD
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30361000 USD
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54721000 USD
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9500000 USD
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16211000 shares
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74000 shares
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211000 shares
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18879000 shares
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16422000 shares
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AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
276000 shares
CY2021Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
21000 shares
CY2022Q1 apei Debt Instrument Covenant Maximum Total Net Leverage Ratio
DebtInstrumentCovenantMaximumTotalNetLeverageRatio
2.0
CY2022Q1 us-gaap Long Term Debt
LongTermDebt
158962000 USD
CY2022Q1 us-gaap Long Term Debt Current
LongTermDebtCurrent
8750000 USD
CY2022Q1 us-gaap Long Term Debt Noncurrent
LongTermDebtNoncurrent
150212000 USD
CY2022Q1 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Two
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo
8750000 USD
CY2022Q1 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Three
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree
8750000 USD
CY2022Q1 us-gaap Long Term Debt Maturities Repayments Of Principal Remainder Of Fiscal Year
LongTermDebtMaturitiesRepaymentsOfPrincipalRemainderOfFiscalYear
6562000 USD
CY2022Q1 us-gaap Long Term Debt Maturities Repayments Of Principal In Next Twelve Months
LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths
8750000 USD
CY2022Q1 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Four
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour
8750000 USD
CY2022Q1 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Five
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive
129063000 USD
CY2022Q1 us-gaap Long Term Debt Maturities Repayments Of Principal After Year Five
LongTermDebtMaturitiesRepaymentsOfPrincipalAfterYearFive
170625000 USD
us-gaap Number Of Reportable Segments
NumberOfReportableSegments
2 segment
CY2022Q1 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
3 segment
CY2022Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
154747000 USD
CY2021Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
88541000 USD
CY2022Q1 us-gaap Depreciation And Amortization
DepreciationAndAmortization
8148000 USD
CY2021Q1 us-gaap Depreciation And Amortization
DepreciationAndAmortization
2651000 USD
CY2022Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
5200000 USD
CY2021Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
10637000 USD
CY2022Q1 us-gaap Interest Income Expense Nonoperating Net
InterestIncomeExpenseNonoperatingNet
-3355000 USD
CY2021Q1 us-gaap Interest Income Expense Nonoperating Net
InterestIncomeExpenseNonoperatingNet
114000 USD
CY2022Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
1040000 USD
CY2021Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
2639000 USD
CY2022Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
2965000 USD
CY2021Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
1528000 USD
CY2022Q1 us-gaap Assets
Assets
771410000 USD
CY2021Q4 us-gaap Assets
Assets
725608000 USD

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