Exhibit 99.2
Advancing the
Learning Experience. Exploring New Opportunities. May 11, 2015 Recent
Results and Developments First Quarter 2015
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 registration and enrollments,
expected revenues, 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, 2014,
Quarterly Report on Form 10-Q for the period ended March 31, 2015 and in
the Company’s 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. Advancing the Learning Experience | Exploring New
Opportunities SAFE HARBOR STATEMENT
American Public
Education, Inc. FIRST QUARTER 2015 RESULTS Implementing Key Initiatives
Since January 2015, APUS expanded student retention pilots, implemented
an admission assessment requirement and announced a tuition increase.
New APUS undergraduate student failure/withdrawal rates improved and bad
debt expense as percent of revenue declined. APUS continued to
experience year-over-year declines in net course registrations by
students using Federal Student Aid and Tuition Assistance. APUS formed
several new strategic relationships with corporations and associations,
including the Scholarship America Network. Student enrollment at Hondros
College of Nursing increased approximately 22%, compared to the prior
year period. Primary Funding Source First Quarter 2015 Y/Y Growth VA +9%
Cash & Other 0% TA/Military -10% FSA/Title IV -11% For three months
ended March 31, 2015 APUS Net Course Registrations by Primary Funding
Source Cash & Other 12% FSA/Title IV 33% Military/TA 35% VA 20%
Advancing the Learning Experience | Exploring New Opportunities
PURSUIT OF QUALITY
GROWTH Student Readiness, Academic Intent & Persistence 4 Advancing the
Learning Experience | Exploring New Opportunities APU Enrollment Change
1Q15 vs. 1Q14 Students with GPA ≥ 2.0: +9% Students with GPA < 2.0: -30%
(Excludes withdrawals, incompletes and students who have not received
grades. Also excludes enrollment of students from discontinued outreach
campaigns.) Key initiatives appear to be improving our quality mix of
students, which may lead to improved outcomes and future financial
stability. Additional benefits of quality growth include the following:
Improved ROI in Outreach Increase in Lifetime Value Lower Bad Debt
Expense Enhanced Student Experience Product Differentiation “As a
percent of total, fewer undergraduate students failing and withdrawing
from their first course at APU.” First Course Completion/Pass Rate by
Undergraduate Students Using Primarily FSA Jan-14 Mar-15 Percent of
Students 28% Increase
STRATEGY & KEY
INITIATIVES Committed to Continuous Improvement Advancing the Learning
Experience | Exploring New Opportunities ADVANCING THE LEARNING
PLATFORM; SEEKING NEW OPPORTUNITIES Key Initiatives Current Status
Expand student persistence pilots, including ClearPath Ongoing Increase
strategic relationships and targeted outreach Ongoing Launched APUS
Native Classroom App (“APUS Mobile”) Completed Implement admissions
standards/assessment Completed Tuition increase (tuition grant for
military and military-affiliated) Announced Multiple disbursements in
Federal Student Aid (4Q2015) Planned Further evaluate brand positioning
with differential pricing (2016) Planned Differentiated & Advanced
Learning Experience – On Online/On Campus Enhance the student experience
through new rich media, simulation, adaptive learning and blended models
New Academic Fields and Markets – Through Investment & Acquisition
Increase programmatic diversification; expand international outreach;
entering new segments such as nursing and healthcare
FINANCIAL RESULTS
SUMMARY First Quarter 2015 Advancing the Learning Experience | Exploring
New Opportunities Consolidated revenue decreased 3.6% to $85.4 million,
compared to the prior year period. Overall operating margins decreased
in the first quarter of 2015: Instructional costs and services as a
percentage of revenue increased to 35.5%, compared to 35.4% in the prior
year period. Selling and promotional expenses increased as a percent of
revenue to 19.9%, compared to 19.3% in the prior year period. General
and administrative expenses as a percentage of revenues increased to
22.4% compared to 22.0% in the prior period. Bad debt expense as percent
of revenue decreased to 4.8%, compared to 5.7% in the prior year period.
Income from operations before interest income and income taxes decreased
13.2% to $14.5 million, compared to $16.7 million in the prior year
period. Net income decreased to $8.8 million or approximately $0.51 per
diluted share, compared to the prior year period. Cash and cash
equivalents decreased to $112.3 million with no long-term debt.
FINANCIAL &
OPERATIONAL OUTLOOK Second Quarter 2015 Advancing the Learning
Experience Exploring New Opportunities 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 by new students -23% to -19% APUS Net course
registrations -10% to -7% HCON New student enrollment Approx. +5.5%
Total revenues -8% to -6% Total net income per diluted share $0.42 to
$0.46 Second Quarter 2015
First Quarter 2015
Financial Results Conference Call May 11, 2015
Advancing the
Learning Experience Exploring New Opportunities The table below includes
a summary of expenses as a percent of revenue for our operating
segments: 2015 2014 2015 2014 2015 2014 Revenues 100% 100% 100% 100%
100% 100% Costs and expenses: Instructional costs and services 33.2%
32.9% 57.5% 62.5% 35.5% 35.4% Selling and promotional 21.0% 20.3% 9.4%
8.3% 19.9% 19.3% General and administrative 23.1% 22.7% 15.4% 13.9%
22.4% 22.0% Depreciation and amortization 5.6% 4.4% 3.4% 4.2% 5.4% 4.4%
Total costs and expenses 82.9% 80.3% 85.7% 88.9% 83.2% 81.1% HCON
SEGMENT(Unaudited) CONSOLIDATED Three Months Ended March 31,APEI
SEGMENT(Unaudited)(Unaudited) APPENDIX I. First Quarter 2015 Expense
Ratios
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. The Company 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, Nursing Programs.
These institutions serve approximately 113,080 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. American Public University System is accredited by the Higher
Learning Commission (HLC) and a member of the North Central Association
of Colleges and Schools (www.ncahlc.org, 312-263-0456). Hondros College,
Nursing Programs is accredited by the Accrediting Council for
Independent Colleges and Schools (ACICS), 750 First Street, NE Suite
980, Washington, DC 20002 (www.acics.org, 202-336-6780). HLC and ACICS
are accrediting agencies recognized by the U.S. Department of Education
and the Council for Higher Education Accreditation. 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 building relationships and referrals. As the higher education
landscape changes, we will promote the success of our students through
technological innovation, expand our program offerings, especially in
high-demand fields, and we will actively pursue promising new frontiers
in education through strategic partnerships, investments and
acquisitions. NOTE: Past performance is not indicative of future
results. Additional information, including important details about risk
factors, can be found in the company’s filings with the U.S. Securities
and Exchange Commission, www.sec.gov. Contact: Chris Symanoskie, Vice
President, Investor Relations 703-334-3880 or csymanoskie@apus.edu Net
Income Attributable to Common Stockholders $29,868 $40,757 $42,323
$42,034 2014 $40,877 2013 2012 2011 2010 March 2015 TICKER: APEI
EXCHANGE: NASDAQ $198,174 $260,377 $313,516 $329,479 2014 $350,020 2013
2012 2011 2010 Revenues $47,078 $70,438 $52,924 $59,414 2014 $61,030
2013 2012 2011 2010 Net Cash Provided by Operating Activities $141,839
$198,891 $237,603 $271,655 2014 $297,904 2013 2012 2011 2010 Total Assets
1. For additional
details, visit
www.amu.apus.edu/tuition-and-finance/tuition-and-fees/ 2. Represents
returning undergraduate students from 2012 conferrals. 3. Hondros
College, Nursing Programs was acquired by APEI, effective November 1,
2013. 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 March 31, 2015 2014 % Change Net Course Registrations
by New Students 14,800 17,600 -16% Net Course Registrations 99,600
105,800 -6% As of March 31, 2015 2014 % Change Active Student
Enrollement 111,500 113,400 -2% Net course registrations represent the
aggregate number of courses for which students remain enrolled after the
date by which they may drop a course without financial penalty.
Enrollment by Degree Level 22% Associates 61% Bachelors 17% Masters
Enrollment by School 26% Business 9% Public Service & Health 18% Arts &
Humanities 30% Security & Global Studies 13% Science, Technology,
Engineering & Math 4% Education At-A-Glance As of March 31, 2015 Avg.
Age of Students: 33 years Avg. Undergraduate Class Size: 19 students
Gender Ratio: 63% male/37% female Avg. Courses Per Year: 3 Military/4
Civilian Faculty: 420 Full-Time/1,830 Adjunct Staff: 990 Full-Time/20
Part-Time AMU & APU Graduates 47,000+ Alumni 45%+ of APUS undergraduate
alumni return for second degree2 45%+ of APUS students referred by
others 50% Licensed Practical Nurse 39% Associate Degree in Nursing 11%
Bachelors Science of Nursing Hondros College of Nursing Enrollment by
Program 3 Serving the needs of nurses and the healthcare community
through campus locations in Cincinnati, Dayton, Columbus and Cleveland,
Ohio. Student Enrollment As of March 31, 2015 2014 % Change New Student
Enrollment 460 400 15% Total Student Enrollment 1,580 1,290 22% Student
enrollment represents the number of students enrolled in one or more
courses after the date by which they may drop the course without
financial penalty. Approximate Cost (Tuition & Fees) of Degree
Completion Licensed Practical Nurse $18,645 Associate Degree in Nursing
$29,105 Bachelors Science of Nursing $16,790 At-A-Glance As of March 31,
2015 Avg. Age of Students: 30 years Gender Ratio: 92% female/8% male
Faculty: 100 Full-Time/40 Part-Time Staff: 90 Full-Time Graduates 800+
Alumni Tuition Combined tuition, fees, and books are roughly 17% less
for undergraduate students than the average published in-state rates at
a public university. Combined tuition, fees, and books are approximately
37% less for graduate students than the average published in-state rates
at a public university.1 Registrations by Primary Funding Source For the
three months ended March 31, 2015 33% Federal Student Aid (Title IV) 35%
Department of Defense Tuition Assistance (TA) 20% Veteran’s Benefits
(VA) 12% Cash & Other Sources