8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

November 7, 2016

(Date of earliest event reported) 

American Public Education, Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware	001-33810	01-0724376
(State or other jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

111 W. Congress Street Charles Town, West Virginia	25414	304-724-3700
(Address of principal executive offices)	(Zip Code)	(Registrant's telephone number including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2 – Financial Information

Item 2.02     Results of Operations and Financial Condition.

On November 7, 2016, American Public Education, Inc. issued a press release reporting financial results for the three and nine months ended September 30, 2016.  A copy of American Public Education’s press release is attached to this report as Exhibit 99.1 and is incorporated in this report by reference.  American Public Education has scheduled a conference call and webcast for 5:00 p.m. Eastern time on November 7, 2016 to discuss its financial results, and slides for that call are attached to this report as Exhibit 99.2 and are incorporated in this report by reference. A copy of the investor fact sheet is attached to this report as Exhibit 99.3 and is incorporated in this report by reference.

Section 9 – Financial Statements and Exhibits

Item 9.01     Financial Statements and Exhibits.

(d) Exhibits

99.1	American Public Education, Inc. press release dated November 7, 2016, reporting financial results for the three and nine months ended September 30, 2016.
99.2	American Public Education, Inc. slides for November 7, 2016 conference call and webcast for the three and nine months ended September 30, 2016.
99.3	American Public Education, Inc. fact sheet posted to its investor relations website on November 7, 2016.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		American Public Education, Inc.
Date:	November 7, 2016	By:	/s/ Richard W. Sunderland, Jr.
			Richard W. Sunderland, Jr., Executive Vice President and Chief Financial Officer

EXHIBIT INDEX

99.1	American Public Education, Inc. press release dated November 7, 2016, reporting financial results for the three and nine months ended September 30, 2016.
99.2	American Public Education, Inc. slides for November 7, 2016 conference call and webcast for the three and nine months ended September 30, 2016.
99.3	American Public Education, Inc. fact sheet posted to its investor relations website on November 7, 2016.

EX-99.1

Exhibit 99.1

American Public Education Reports Third Quarter 2016 Results

CHARLES TOWN, W.Va, Nov. 7, 2016 /PRNewswire/ -- American Public Education, Inc. (NASDAQ: APEI) – parent company of online learning provider American Public University System (APUS) and campus-based Hondros College of Nursing (HCON) – announced financial results for the quarter ended September 30, 2016.

Selected Financial Data:

• Third quarter 2016 consolidated revenue decreased 3.3% to $73.8 million, compared to $76.3 million in the same period of 2015.  

• GAAP net income for the third quarter of 2016 decreased to $0.3 million, or $0.02 per diluted share, compared to $6.8 million, or $0.41 per diluted share, in the same period of 2015.

• Adjusted net income for the third quarter of 2016 was $5.7 million, or $0.35 per diluted share.  Adjusted net income for the third quarter of 2016 excludes a $4.0 million write-off of student course registration software development in our APEI segment and a $4.7 million expense for impairment of goodwill in our HCON segment, and reflects the applicable tax effect of those adjustments.  For additional information regarding adjusted net income (a non-GAAP measure), please refer to "GAAP to Adjusted Net Income Reconciliation" in the financial tables that follow.

Registrations and Enrollment Highlights:

• Net course registrations at American Public University System decreased approximately 10% in the third quarter of 2016, compared to the prior year period.  Net course registrations by returning students decreased approximately 8% year-over-year and net course registrations by new students decreased approximately 23% year-over-year in the third quarter of 2016.

• Active student enrollment at American Public University System decreased 8% year-over-year to approximately 91,000 students as of September 30, 2016.

• Total student enrollment at HCON decreased approximately 11% to 1,610 students for the three months ended September 30, 2016.   However, new student enrollment for the three months ended December 31, 2016 (Fall 2016) increased by approximately 1% year-over-year to more than 530 students - the largest cohort of new student at HCON since Fall 2014.

Financial Results:

Total consolidated revenue for the third quarter of 2016 decreased 3.3% to $73.8 million, compared to total revenue of $76.3 million in the third quarter of 2015. Consolidated income from operations before interest income and income taxes in the third quarter of 2016 was $0.4 million, compared to consolidated income from operations before interest income and income taxes of $10.5 million in the third quarter of 2015. GAAP net income for the third quarter of 2016 was $0.3 million, or $0.02 per diluted share, compared to GAAP net income of $6.8 million, or $0.41 per diluted share for the third quarter of 2015. The weighted average diluted shares outstanding for the third quarter of 2016 and 2015 were approximately 16.2 million and 16.7 million, respectively.

Adjusted net income for the third quarter of 2016 was $5.7 million, or $0.35 per diluted share. Adjusted net income for the third quarter of 2016 excludes a $4.0 million write-off of student course registration software development in our APEI segment and a $4.7 million expense for impairment of goodwill in our HCON segment, and reflects the applicable tax effect of those adjustments. For additional information regarding adjusted net income (a non-GAAP measure), please refer to "GAAP to Adjusted Net Income Reconciliation" in the financial tables that follow.

For the nine months ended September 30, 2016, total consolidated revenue decreased 3.1% to $234.5 million, compared to $242.0 million in the prior year period. Consolidated income from operations before interest income and income taxes for the nine months ended September 30, 2016 was $27.0 million, compared to $36.6 million in the prior year period. GAAP net income for the nine months ended September 30, 2016 was $17.3 million, or $1.07 per diluted share, compared to net income of $22.6 million, or $1.33 per diluted share in the prior year period. The weighted average diluted shares outstanding for the nine months ended September 30, 2016 and 2015 were approximately 16.2 million and 17.0 million, respectively.

Adjusted net income for the nine months ended September 30, 2016 was $22.7 million, or $1.40 per diluted share. Adjusted net income for the nine months ended September 30, 2016 excludes a $4.0 million write-off of student course registration software development in our APEI segment and a $4.7 million expense for impairment of goodwill in our HCON segment, and reflects the applicable tax effect of those adjustments. For additional information regarding adjusted net income (a non-GAAP measure), please refer to "GAAP to Adjusted Net Income Reconciliation" in the financial tables that follow.

Total cash and cash equivalents as of September 30, 2016 were approximately $137.7 million with no long-term debt. Capital expenditures were approximately $9.7 million for the nine months ended September 30, 2016, compared to $19.6 million in the prior year period. Depreciation and amortization was $14.6 million for the nine months ended September 30, 2016, compared to $14.2 million for the same period of 2015.

Registrations and Enrollment:
American Public University System1
For the three months ended September 30,	2016	2015	% Change
Net Course Registrations by New Students	12,300	15,900	-23%
Net Course Registrations	84,600	94,200	-10%
For the nine months ended September 30,	2016	2015	% Change
Net Course Registrations by New Students	35,400	44,200	-20%
Net Course Registrations	262,400	282,800	-7%
As of September 30,
Active Student Enrollment2	91,000	99,000	-8%
Hondros College of Nursing3
For the three months ended September 30,	2016	2015	% Change
New Student Enrollment	320	400	-20%
Total Student Enrollment	1,610	1,810	-11%
1APUS Net Course Registrations represent the approximate aggregate number of courses for which students remain enrolled after the date by which they may drop a course without financial penalty. 2APUS Active StudentEnrollment represents the number of unique students who remain enrolled in a course past the first week of class or who have completed at least one course for which a grade was received within the last 12 months. 3HCONStudent Enrollment represents the total number of students enrolled in a course immediately after the quarter's add/drop period.

Non-GAAP Financial Measure ("Adjusted Net Income"):

This press release contains the non-GAAP financial measure of adjusted net income, which excludes certain charges for disposals of long-lived assets (the write-off of student course registration software development) and impairment of goodwill, and reflects the applicable tax effect of those adjustments. American Public Education believes that the use of adjusted net income is useful because it allows investors to better compare results to prior year periods.

This non-GAAP measure should not be considered in isolation or as an alternative to measures determined in accordance with generally accepted accounting principles in the United States (GAAP). The principal limitation of adjusted net income is that it excludes expenses that are required by GAAP to be recorded. In addition, non-GAAP measures are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses are excluded.

American Public Education is presenting adjusted net income in connection with its GAAP results and urges investors to review the reconciliation of adjusted net income to the comparable GAAP financial measures that is included in the tables following this press release (under the caption "GAAP to Adjusted Net Income Reconciliation") and not to rely on any single financial measure to evaluate its business.

Fourth Quarter 2016 Outlook:

The following statements are based on American Public Education's 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 fourth quarter 2016 consolidated revenues to decrease between approximately 6% and 3% year-over-year, compared to the prior year period of 2015. The Company expects consolidated net income of between $0.38 and $0.43 per diluted share in the fourth quarter of 2016.

American Public Education also expects the following results from its subsidiaries in the fourth quarter of 2016:

• At American Public University System, net course registrations by new students are expected to decrease between 30% and 26% year-over-year and net course registrations are expected to decrease between 14% and 10% year-over-year.

• At Hondros College of Nursing, new student enrollment increased by approximately 1% year-over-year and total student enrollment decreased by approximately 13% year-over-year for the three months ended December 31, 2016. ³

Webcast:

A live webcast of the Company's third quarter 2016 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.

About American Public Education
American Public Education, Inc. (NASDAQ: APEI) is a leading provider of higher learning dedicated to preparing students all over the world for excellence in service, leadership and achievement. The Company offers respected, innovative and affordable academic programs and services to students, universities and partner organizations through wholly owned subsidiaries: American Public University System and National Education Seminars Inc., which we refer to in this press release as Hondros College of Nursing. Together, these institutions serve more than 90,000 adult learners worldwide and offer more than 100 degree programs in fields ranging from homeland security, military studies, intelligence, and criminal justice to technology, business administration, public health, nursing and liberal arts. For additional information, please visit http://AmericanPublicEducation.com.

Forward Looking Statements
Statements made in this press release regarding American Public Education, Inc., or its subsidiaries, that are not historical facts are forward-looking statements based on current expectations, assumptions, estimates and projections about American 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," "seek," "could," "estimate," "expect," "intend," "may," "should," "will" and "would." These forward-looking statements include, without limitation, statements regarding expected growth, expected registration and enrollments, 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, 2015, Quarterly Report on Form 10-Q for the period ended September 30, 2016 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
	September 30,
	2016		2015
	(Unaudited)
Revenues	$	73,803	$	76,291
Costs and expenses:
Instructional costs and services		28,357		29,167
Selling and promotional		13,139		14,062
General and administrative		17,125		17,616
Loss on disposals of long-lived assets		4,323		43
Loss on assets held for sale		822		—
Impairment of goodwill as		4,735		—
Depreciation and amortization		4,910		4,891
Total costs and expenses		73,411		65,779
Income from operations before
interest income and income taxes		392		10,512
Interest income, net		37		37
Income before income taxes		429		10,549
Income tax expense		85		3,796
Equity investment income/(loss)		(18)		4
Net income	$	326	$	6,757
Net income per common share:
Basic	$	0.02	$	0.41
Diluted	$	0.02	$	0.41
Weighted average number of
common shares:
Basic		16,075		16,562
Diluted		16,233		16,662
	Three Months Ended
Segment Information:	September 30,
	2016		2015
Revenues:
American Public Education, Inc.	$	67,065	$	69,233
Hondros College of Nursing	$	6,738	$	7,058
Income (loss) from continuing operations
before interest income and income taxes:
American Public Education, Inc.	$	5,659	$	10,049
Hondros College of Nursing	$	(5,267)	$	463
	Nine Months Ended
	September 30,
	2016		2015
	(Unaudited)
Revenues	$	234,514	$	241,998
Costs and expenses:
Instructional costs and services		86,968		89,123
Selling and promotional		44,592		47,233
General and administrative		50,703		54,845
Loss on disposals of long-lived assets		5,048		60
Loss on assets held for sale		822		—
Impairment of goodwill and intangible assets		4,735		—
Depreciation and amortization		14,624		14,178
Total costs and expenses		207,492		205,439
Income from operations before
interest income and income taxes		27,022		36,559
Interest income, net		111		78
Income before income taxes		27,133		36,637
Income tax expense		10,524		13,994
Equity investment income/(loss)		653		(20)
Net income	$	17,262	$	22,623
Net income per common share:
Basic	$	1.07	$	1.34
Diluted	$	1.07	$	1.33
Weighted average number of
common shares:
Basic		16,058		16,844
Diluted		16,175		16,974
	Nine Months Ended
Segment Information:	September 30,
	2016		2015
Revenues:
American Public Education, Inc.	$	212,859	$	219,263
Hondros College of Nursing	$	21,655	$	22,735
Income (loss) from continuing operations
before interest income and income taxes:
American Public Education, Inc.	$	31,211	$	34,179
Hondros College of Nursing	$	(4,189)	$	2,380

GAAP to Adjusted Net Income Reconciliation:
The following table sets forth the reconciliation of the Company's reported GAAP net income to the calculation of adjusted net income for the three and nine months ended September 31, 2016 and 2015:
(In thousands, except per share data)
	Three Months Ended September 30,
	2016				2015
	$		Per Share		$		Per Share
	(Unaudited)
Net income:	$	326	$	0.02	$	6,757	$	0.41
Add adjustments:
Loss on disposal of student course
registration software development		3,978		0.25		—		—
Impairment of goodwill		4,735		0.29		—		—
Tax effect of non-GAAP adjustments		(3,318)		(0.20)		—		—
Adjusted net income:	$	5,721	$	0.35	$	6,757	$	0.41
Weighted average number of diluted common
shares outstanding:	16,233				16,662
	Nine Months Ended September 30,
	2016				2015
	$		Per Share		$		Per Share
	(unaudited)
Net income:	$	17,262	$	1.07	$	22,623	$	1.33
Add adjustments:
Loss on disposal of student course
registration software development		3,978		0.25		—		—
Impairment of goodwill		4,735		0.29		—		—
Tax effect of non-GAAP adjustments		(3,318)		(0.21)		—		—
Adjusted net income:	$	22,657	$	1.40	$	22,623	$	1.33
Weighted average number of diluted common
shares outstanding:	16,175				16,974

Logo - http://photos.prnewswire.com/prnh/20160324/347796LOGO

CONTACT: Richard W. Sunderland, Jr., CPA, Executive Vice President and Chief Financial Officer, 304.885.5371; Christopher L. Symanoskie, IRC, Vice President, Investor Relations, 703.334.3880

EX-99.2

Exhibit 99.2

November 7, 2016 Recent Results and Developments Third Quarter 2016

Statements made in this presentation regarding American Public Education, Inc . or its subsidiaries, that are not historical facts are forward - looking statements based on current expectations, assumptions, estimates and projections about American Public Education 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”, “seek”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “should”, “will” and “would” . These forward - looking statements include, without limitation, statements regarding expected growth, expected registrations and enrollments, expected revenues, expected earnings, brand and enrollment management, program development and business development initiatives . 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 American Public Education ’ s Annual Report on Form 10 - K for the year ended December 31 , 2015 , Quarterly Report on Form 10 - Q for the three months ended September 30 , 2016 and in the American Public Education’s other filings with the SEC . American Public Education undertakes no obligation to update publicly any forward - looking statements for any reason, unless required by law, even if new information becomes available or other events occur in the future . 2 Advancing the Learning Experience | Exploring New Opportunities SAFE HARBOR STATEMENT American Public Education, Inc.

THIRD QUARTER 2016 RESULTS Quality Mix of Students Continued to Improve • APUS continued to focus on improving student persistence and attracting new students with greater college readiness. • The first course pass and completion rate for APUS undergraduate students using Federal Student Aid increased by 17% for the three months ended August 31, 2016, compared to the prior year period. • APEI segment bad debt expense decreased to 2.2% of revenue, compared to 3.4% in the prior year period. • HCON new student enrollment increased approximately 1% y/y for the three months ending December 2016 (Fall 2016) – representing the largest cohort of new students since Fall 2014. • HCON’s new Toledo campus set to begin classes in Practical Nursing (PN) starting January 2017 . For the nine months ended September 30, 2016 APUS Net Course Registrations by Primary Funding Source Other 13% FSA/Title IV 29% Military/TA 36% VA 22% 3 Advancing the Learning Experience | Exploring New Opportunities FSA   -14.9% TA   -9.1% VA   -6.5% OTHER   -7.5% Total:   -10.2% Change (y/y) 3Q2016 APUS Net Course Registrations by Primary Funding Source

4 Advancing the Learning Experience | Exploring New Opportunities Increase Student Persistence Strengthening Brand Position & Enrollment Management: • Increase promotion of existing tuition grants. • Further improve the effectiveness of our enrollment lifecycle. • Announcing the appointment of Robert E. Gay as Chief Operations Officer to advance enrollment management and marketing initiatives. Expanding Programs in Alignment with Workforce Demand: • Launched seven degree and certificate programs in business analytics, technical management and accounting. • Recently announced the hiring of Dr. Vernon C. Smith as Provost to focus on learning outcomes and product development. Increasing Focus on Workforce Development: • APUS Momentum – seeking approval for competency - based degree programs. • Center for Applied Learning – training programs aligned with needs of public safety professionals and their employers. • Developed several new strategic relationships, including with Holland America Group and the US Postal Service (USPS). APUS: STABILIZING STUDENT ENROLLMENT Through Outreach, Product Offerings & Process Improvement

FINANCIAL RESULTS SUMMARY Third Quarter 2016 Advancing the Learning Experience | Exploring New Opportunities 5 • Consolidated revenue decreased 3.3% to $73.8 million, compared to $76.3 million in the same period of 2015. • Costs and Expenses: • Instructional costs and services increased slightly as a percentage of revenue to 38.4%, compared to 38.2% in the prior year period. • Selling and promotional expenses decreased as a percentage of revenue to 17.8%, compared to 18.4% in the prior year period. • General and administrative expenses as a percentage of revenue increased slightly to 23.2% compared to 23.1% in the prior year period. • GAAP net income decreased to $0.3 million, or $0.02 per diluted share, compared to $6.8 million, or $0.41 per diluted share, in the prior year period. • Adjusted net income (a non - GAAP measure) for the third quarter of 2016 was $5.7 million, or $ 0.35 per diluted share. See “GAAP to Adjusted Net Income Reconciliation ” in the appendix of this presentation and the tables in the earnings release for additional detail. • Cash and cash equivalents increased to $137.7 million, compared to $105.7 million at December 31, 2015.

FINANCIAL/OPERATIONAL OUTLOOK Fourth Quarter 2016 Advancing the Learning Experience | Exploring New Opportunities 6 The following statements are based on current expectations. These statements are forward - looking and actual results may differ materially. Approximate Change (y/y) APUS Net course registrations 1 by new students - 30% to - 26% APUS Net course registrations 1 - 14% to - 10% HCON New student enrollment 2 Approx. +1% HCON Total student enrollment 2 Approx. - 11% Total consolidated revenue - 6% to - 3% Total net income per diluted share $0.38 to $0.43 Fourth Quarter 2016 1 APUS Net Course Registrations represent the approximate aggregate number of courses for which students remain enrolled after the date by which they may drop a course without financial penalty . 2 HCON Student Enrollment represents the total number of students enrolled in a course immediately after the quarter’s add/drop period .

Second Quarter 2016 Financial Results Conference Call November 7, 2016

APPENDIX GAAP to Adjusted Net Income Reconciliation 8 GAAP to Adjusted Net Income Reconciliation:                                       Net income: $ 326 $ 0.02   $ 6,757 $ 0.41 Add adjustments: Loss on disposal of student course registration software development 3,978 0.25 — — Impairment of goodwill 4,735 0.29 — — Tax effect of non-GAAP adjustments (3,318) (0.20) — — Adjusted net income: $ 5,721 $ 0.35   $ 6,757 $ 0.41 Weighted average number of diluted common           shares outstanding:   2015 16,233 The following table sets forth the reconciliation of the Company’s reported GAAP net income to the calculation of adjusted net income for the three and nine months ended September 31, 2016 and 2015: (In thousands, except per share data) 2016 $ Per Share Three Months Ended September 30, (Unaudited) $ Per Share 16,662               $ 17,262 $ 1.07   $ 22,623 $ 1.33 3,978 0.25 — — 4,735 0.29 — — (3,318) (0.21) — — $ 22,657 $ 1.40   $ 22,623 $ 1.33             2016 2015 Per Share (unaudited) Nine Months Ended September 30, $ 16,175 $ Per Share 16,974

EX-99.3

Exhibit 99.3

 

September 2016 TICKER: APEI EXCHANGE: NASDAQ American Public Education, Inc. (NASDAQ: APEI) is a leading education services provider founded to prepare adult learners for service and leadership in a diverse global economy. APEI offers respected, innovative and affordable educational programs and services to students, universities and partner organizations through wholly owned subsidiaries: American Public University System (APUS) and Hondros College of Nursing (HCON). Together, these accredited institutions serve more than 90,000 learners worldwide and offer over 100 degree programs in fields ranging from homeland security, military studies, intelligence, and criminal justice to technology, business administration, public health, nursing and liberal arts. APEI Strategy Our strategy builds on the core strengths of quality, affordability and innovation, which have helped establish our reputation for leadership and innovation. Moving forward, our plan is to continue expanding our presence in military, public service and civilian communities primarily through a focus on building relationships and referrals. As the higher education landscape changes, we intend to promote the success of our students through technological innovation, expand our program offerings, especially in high-demand fields, and actively pursue promising new frontiers in education through strategic partnerships, investments and acquisitions. 94% EMPLOYERS SURVEYED feel AMU/APU graduates possess field specific academic skills1 88% EMPLOYERS SURVEYED would hire another AMU/APU graduate1 95% ALUMNI SURVEYED would recommend AMU/APU to a friend or colleague2 90% ALUMNI SURVEYED either completely or very satisfied with education received3 $303,896 $327,910 $70,438 $42,323 $42,034 $350,020 $40,877 $40,757 $297,904 $329,479 $57,211 $313,516 $61,030 $271,655 $32,414 $59,414 $237,603 $52,924 $260,377 $198,891 2012 2014 2015 2015 2014 2012 2013 2011 2013 2011 2015 2014 2012 2013 2011 2015 2014 2012 2013 2011 Net Income Attributable to Common Stockholders Total Assets Net Cash Provided by Operating Activities Revenue 1. APUS Alumni Employer Survey, 2010–2015. 2. Public four-year, in-state undergraduate data is provided by the College Board’s Trends in College Pricing 2014. Graduate information is provided by the National Center for Education Statistics (NCES) Digest of Educational Statistics 2012-13 data. Annual estimates are based on total institutional costs (published tuition, required fees, and books) assuming 30 undergraduate or 18 graduate-level semester credit hours. 3. APUS End of Program Survey, 2015. Contact: Chris Symanoskie, Vice President, Investor Relations 703-334-3880 or csymanoskie@apus.edu NOTE: Past performance is not indicative of future results. Additional information, including important details about risk factors, can be found in APEI’s filings with the U.S. Securities and Exchange Commission, www.sec.gov.

APUS American Public University System An online institution of higher learning serving the needs of military, public service and civilian communities through American Military University (AMU) and American Public University (APU). Enrollment and Registrations For the three months ended September 30, 2016 2015 % Change Net Course Registrations by New Students 12,300 15,900 -23% Net Course Registrations1 84,600 94,200 -10% For the nine months ended September 30, 2016 2015 % Change Net Course Registrations by New Students 35,400 44,200 -20% Net Course Registrations 262,400 282,800 -7% As of September 30, 2016 2015 % Change Active Student Enrollement2 91,000 99,000 -8%