Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | May 07, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-33810 | |
Entity Registrant Name | AMERICAN PUBLIC EDUCATION, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 01-0724376 | |
Entity Address, Address Line One | 111 West Congress Street, | |
Entity Address, City or Town | Charles Town, | |
Entity Address, State or Province | WV | |
Entity Address, Postal Zip Code | 25414 | |
City Area Code | 304 | |
Local Phone Number | 724-3700 | |
Title of 12(b) Security | Common Stock, $.01 par value | |
Trading Symbol | APEI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 18,671,101 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001201792 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash, cash equivalents, and restricted cash (Note 2) | $ 320,816 | $ 227,686 |
Accounts receivable, net of allowance of $6,611 in 2021 and $5,983 in 2020 | 13,442 | 17,652 |
Prepaid expenses | 9,298 | 6,472 |
Total current assets | 343,556 | 251,810 |
Property and equipment, net | 67,136 | 68,434 |
Operating lease assets, net | 9,873 | 8,743 |
Investments | 10,490 | 10,495 |
Goodwill | 26,563 | 26,563 |
Other assets, net | 5,581 | 4,973 |
Total assets | 463,199 | 371,018 |
Current liabilities: | ||
Accounts payable | 2,681 | 3,757 |
Accrued compensation and benefits | 12,271 | 15,660 |
Accrued liabilities | 10,614 | 10,967 |
Deferred revenue and student deposits | 21,676 | 22,104 |
Income tax payable | 1,083 | 178 |
Operating lease liabilities, current | 2,165 | 2,392 |
Total current liabilities | 50,490 | 55,058 |
Operating lease liabilities, long-term | 7,839 | 6,455 |
Deferred income taxes | 4,226 | 2,580 |
Total liabilities | 62,555 | 64,093 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity: | ||
Preferred stock, $.01 par value; Authorized shares - 10,000; no shares issued or outstanding | 0 | 0 |
Common stock, $.01 par value; Authorized shares - 100,000; 18,671 issued and outstanding in 2021; 14,809 issued and outstanding in 2020 | 187 | 148 |
Additional paid-in capital | 281,170 | 195,597 |
Retained earnings | 119,287 | 111,180 |
Total stockholders’ equity | 400,644 | 306,925 |
Total liabilities and stockholders’ equity | $ 463,199 | $ 371,018 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Accounts receivable, allowance | $ 6,611 | $ 5,983 |
Stockholders’ equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued (in shares) | 18,671,000 | 14,809,000 |
Common stock, outstanding (in shares) | 18,671,000 | 14,809,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 88,541 | $ 74,616 |
Costs and expenses: | ||
Instructional costs and services | 32,319 | 29,230 |
Selling and promotional | 19,402 | 18,186 |
General and administrative | 23,524 | 21,003 |
Loss on disposals of long-lived assets | 8 | 166 |
Depreciation and amortization | 2,651 | 3,338 |
Total costs and expenses | 77,904 | 71,923 |
Income from operations before interest income and income taxes | 10,637 | 2,693 |
Interest Income (Expense), Nonoperating, Net | 114 | 702 |
Income before income taxes | 10,751 | 3,395 |
Income tax expense | 2,639 | 974 |
Equity investment loss | (5) | (1) |
Net income | $ 8,107 | $ 2,420 |
Net income per common share: | ||
Basic (in dollars per share) | $ 0.50 | $ 0.16 |
Diluted (in dollars per share) | $ 0.49 | $ 0.16 |
Weighted average number of common shares: | ||
Basic (in shares) | 16,211,000 | 15,024,000 |
Diluted (in shares) | 16,422,000 | 15,116,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2019 | 15,178 | |||
Beginning balance at Dec. 31, 2019 | $ 296,733 | $ 152 | $ 190,620 | $ 105,961 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock under employee benefit plans (in shares) | 224 | |||
Issuance of common stock under employee benefit plans | 0 | $ 2 | (2) | |
Deemed repurchased shares of common and restricted stock for tax withholding (in shares) | (73) | |||
Deemed repurchased shares of common and restricted stock for tax withholding | (1,946) | $ (1) | (1,945) | |
Stock-based compensation | 1,750 | 1,750 | ||
Repurchased and retired shares of common stock (in shares) | (548) | |||
Repurchased and retired shares of common stock | (13,608) | $ (5) | (13,603) | |
Net income | 2,420 | 2,420 | ||
Ending balance (in shares) at Mar. 31, 2020 | 14,781 | |||
Ending balance at Mar. 31, 2020 | 285,349 | $ 148 | 190,423 | 94,778 |
Beginning balance (in shares) at Dec. 31, 2020 | 14,809 | |||
Beginning balance at Dec. 31, 2020 | $ 306,925 | $ 148 | 195,597 | 111,180 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock in public offering (in shares) | 3,680 | |||
Issuance of common stock in public offering | $ 86,205 | $ 37 | 86,168 | |
Issuance of common stock under employee benefit plans (in shares) | 272 | |||
Issuance of common stock under employee benefit plans | 0 | $ 3 | (3) | |
Deemed repurchased shares of common and restricted stock for tax withholding (in shares) | (90) | |||
Deemed repurchased shares of common and restricted stock for tax withholding | (2,773) | $ (1) | (2,772) | |
Stock-based compensation | 2,180 | 2,180 | ||
Net income | 8,107 | 8,107 | ||
Ending balance (in shares) at Mar. 31, 2021 | 18,671 | |||
Ending balance at Mar. 31, 2021 | $ 400,644 | $ 187 | $ 281,170 | $ 119,287 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating activities | ||
Net income | $ 8,107 | $ 2,420 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,651 | 3,338 |
Stock-based compensation | 2,180 | 1,750 |
Equity investment loss | 5 | 1 |
Deferred income taxes | 1,646 | 1,878 |
Loss on disposals of long-lived assets | 8 | 166 |
Other | 3 | 6 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net of allowance for bad debt | 4,210 | 4,828 |
Prepaid expenses | (2,989) | (2,639) |
Income tax receivable/payable | 905 | (923) |
Operating leases, net | 27 | 45 |
Other assets | 228 | (497) |
Accounts payable | (779) | 1,460 |
Accrued compensation and benefits | (3,389) | (2,737) |
Accrued liabilities | (1,159) | (122) |
Deferred revenue and student deposits | (428) | 2,548 |
Net cash provided by operating activities | 11,226 | 11,522 |
Investing activities | ||
Capital expenditures | (1,528) | (1,869) |
Net cash used in investing activities | (1,528) | (1,869) |
Financing activities | ||
Cash paid for repurchase of common stock | (2,773) | (15,554) |
Cash received from issuance of common stock | 86,205 | 0 |
Net cash provided by (used in) financing activities | 83,432 | (15,554) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 93,130 | (5,901) |
Cash, cash equivalents, and restricted cash at beginning of period | 227,686 | 202,740 |
Cash, cash equivalents, and restricted cash at end of period | 320,816 | 196,839 |
Supplemental disclosure of cash flow information | ||
Income taxes paid | $ 62 | $ 21 |
Nature of the Business
Nature of the Business | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of the Business | Nature of the Business 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 to approximately 93,800 students through two subsidiary institutions: • 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. • 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, including a campus in Akron that opened in April 2021, and a 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. In March 2020, in response to the novel coronavirus COVID-19 global pandemic, HCN shifted to a blended model with online delivery of its courses and on campus delivery of certain labs. HCN later fully reopened its campuses, using smaller in person classes with screening, social distancing, and masking requirements, while continuing to offer courses in a virtual setting for those that prefer remote course learning. There can be no assurance that HCN will not need to again further limit campus interactions or close its campuses in response to the COVID-19 pandemic or as a result of local regulations. The Company’s institutions are licensed or otherwise authorized, or are in the process of obtaining such licenses or authorizations, to offer postsecondary education programs by state authorities to the extent the institutions believe such licenses or authorizations are required, and 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. The Company’s operations are organized into two reportable segments: • American Public Education Segment, or APEI Segment. This segment reflects the operational activities at APUS, other corporate activities, and minority investments. • Hondros College of Nursing Segment, or HCN Segment. This segment reflects the operational activities of HCN. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Accounting The accompanying unaudited, interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP. Principles of Consolidation The accompanying unaudited interim Consolidated Financial Statements include the accounts of APEI and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. Unaudited Interim Financial Information The unaudited interim Consolidated Financial Statements do not include all of the information and notes required by GAAP for audited annual financial statement presentations. In the opinion of management, these statements include all adjustments (consisting of normal recurring adjustments) considered necessary to present a fair statement of the Company’s financial position, results of operations, and cash flows. Operating results for any interim period are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Consolidated Financial Statements and accompanying notes in its audited financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2020, or the Annual Report. Use of Estimates 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 these estimates under different assumptions or conditions, and the impact of such differences may be material to the Company’s Consolidated Financial Statements. Restricted Cash Cash, cash equivalents, and restricted cash includes funds held for students for unbilled educational services that were received from Title IV programs. The Company is required to maintain and restrict these funds pursuant to the terms of the applicable institution’s program participation agreement with ED. Restricted cash on the Company’s Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020 was $1.0 million and $1.2 million, respectively. Investments The Company periodically evaluates its equity method investment for indicators of an other-than-temporary impairment. Factors the Company considers when evaluating for an other-than-temporary impairment include the duration and severity of the impairment, the reasons for the decline in value, and the potential recovery period. For an investee with impairment indicators, the Company measures fair value on the basis of discounted cash flows or other appropriate valuation methods. If it is probable that the Company will not recover the carrying amount of the investment, the impairment is considered other-than-temporary and recorded in equity investment income (loss), and the equity investment balance is reduced to its fair value. For each reporting period, the Company evaluates its cost method investments for observable price changes. Factors the Company may consider when evaluating an observable price may include significant changes in the regulatory, economic or technological environment, changes in the general market condition, bona fide offers to purchase or sell similar investments, and other criteria. Management must exercise significant judgment in evaluating the potential impairment of its equity and cost method investments. The Company evaluated its equity method and cost method investments for impairment as of March 31, 2021, including a review of any impacts related to the COVID-19 pandemic, and determined none of the investments were impaired. Goodwill and Indefinite-lived Intangible Assets During the three months ended March 31, 2021 and 2020, the Company evaluated events and circumstances related to the valuation of goodwill through March 31, 2021 and 2020, respectively, to determine if there were indicators of impairment. This evaluation included consideration of enrollment trends and financial performance, as well as industry and market conditions, and the impact of the COVID-19 pandemic. These evaluations concluded there were no indicators of impairment during the period, and consequently, there was no impairment of goodwill or intangible assets during the three months ended March 31, 2021 and 2020. For additional information on goodwill and intangible assets, see the Company’s Consolidated Financial Statements and accompanying notes in its audited financial statements included in the Annual Report. Stock-based Compensation Stock-based payments may include incentive stock options or non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights, performance shares, performance units, cash-based awards, other stock-based awards, including unrestricted shares, or any combination of the foregoing. Stock-based compensation cost is recognized as expense, generally over a three-year vesting period, using the straight-line method for employees and the graded-vesting method for members of the Board of Directors, and is measured using the Company’s closing stock price on the date of the grant. An accelerated one-year period is used to recognize stock-based compensation cost for employees who have reached certain service and retirement eligibility criteria on the date of grant. The fair value of each option award is estimated at the date of grant using a Black-Scholes option-pricing model that uses certain assumptions, including assumptions with respect to expected stock price volatility and the risk-free interest rate. Judgment is required in estimating the percentage of share-based awards that are expected to vest, and in the case of performance stock units, or PSUs, the level of performance that will be achieved and the number of shares that will be earned. The Company estimates forfeitures of share-based awards at the time of grant and revises such estimates in subsequent periods if actual forfeitures differ from original estimates. The forfeiture assumption is ultimately adjusted to the actual forfeiture rate. If actual results differ significantly from these estimates, stock-based compensation expense could be higher and have a material impact on the Company’s Consolidated Financial Statements. Estimates are subjective and are not intended to predict actual future events, and subsequent events are not indicative of the reasonableness of the original estimates of fair value. Stock-based compensation expense for the three months ended March 31, 2021 and 2020 was as follows (in thousands): Three Months Ended March 31, 2021 2020 (Unaudited) Instructional costs and services $ 466 $ 478 Selling and promotional 309 258 General and administrative 1,405 1,014 Stock-based compensation expense in operating income $ 2,180 $ 1,750 Incentive-based Compensation The Company provides incentive-based compensation opportunities to certain employees through cash incentive and equity awards. The expense associated with these awards is reflected within the Company’s operating expenses. For the years ending December 31, 2021 and 2020, the Management Development and Compensation Committee of the Company’s Board of Directors approved an annual incentive arrangement for senior management employees. The aggregate amount of any awards payable is dependent upon the achievement of certain Company financial and operational goals, as well as individual performance goals. Given that the awards are generally contingent upon achieving annual objectives, final determination of the current year incentive awards cannot be made until after the results for the year are finalized. The Company recognizes the estimated fair value of performance-based restricted stock units by assuming the satisfaction of any performance-based objectives at the “target” level, which is the most probable outcome determined for accounting purposes at the time of grant, and multiplying the corresponding number of shares earned based upon such achievement by the closing price of the Company’s stock on the date of grant. To the extent performance goals are not met, compensation cost is not ultimately recognized against the goals and, to the extent previously recognized, compensation cost is reversed. Amounts accrued are subject to change in future interim periods if actual future financial results or operational performance are better or worse than expected. The Company recognized an aggregate expense associated with the Company’s current year annual incentive-based compensation plans of approximately $1.2 million during the three month period ended March 31, 2021, compared to an aggregate expense of $1.3 million during the three month period ended March 31, 2020. Common Stock On March 1, 2021, we completed an underwritten public offering of 3,680,000 shares of our common stock at a price to the public of $25.00 per share for net proceeds of approximately $86.2 million, after deducting underwriting discounts and commissions and other offering expenses. Income Taxes The Company determines its interim tax provision by applying the estimated income tax rate expected for the full calendar year to income before income taxes for the period adjusted for discrete items. Recent Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates, or ASUs, issued by the Financial Accounting Standards Board, or FASB. All ASUs issued subsequent to the filing of the Annual Report on March 9, 2021 were assessed and determined to be either inapplicable or not expected to have a material impact on the Company’s consolidated financial position and/or results of operations. |
Acquisition Activity
Acquisition Activity | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisition Activity | Acquisition Activity On October 28, 2020, the Company entered into a definitive agreement to acquire Rasmussen University, a nursing- and health sciences-focused institution serving over 18,000 students at its 24 campuses across six states and online, which the Company refers to as the Rasmussen Acquisition. Pursuant to the terms of a Membership Purchase Agreement, or the Rasmussen Agreement, the Company agreed to purchase from FAH Education, LLC, all of the units of membership interests in Rasmussen LLC, Rasmussen University’s parent company, for $300 million in cash and $29 million in shares of a new series of non-voting preferred stock of the Company to be issued at the closing of the Rasmussen Acquisition (or, at the Company’s election, up to an additional $29 million in cash in lieu thereof), subject to customary adjustments, including for net working capital, cash and debt of the acquired companies. The Rasmussen Acquisition is expected to close in the third quarter of 2021, subject to the satisfaction or waiver of closing conditions that include, among others, regulatory review by ED, approval by HLC, and approval by or notices to other regulatory and accrediting bodies. In connection with entering into the Rasmussen Agreement, on October 28, 2020, the Company entered into a senior secured credit facilities commitment letter or the Commitment Letter, with Macquarie Capital (USA) Inc., or Macquarie Capital, and Macquarie Capital Funding LLC, or Macquarie Lender. Pursuant to the terms of the Commitment Letter, Macquarie Lender committed to provide (i) a senior secured term loan facility in the aggregate principal amount of $175 million, or the Term Facility and (ii) a senior secured revolving loan facility in an aggregate commitment amount of $20 million (together with the Term Facility, the Facilities). On January 26, 2021, the Company entered into a joinder agreement pursuant to which Macquarie assigned a portion of the commitments to Truist Bank and Truist Securities, Inc., or together, Truist. Macquarie Capital and Truist will act as lead arrangers and bookrunners with respect to the Facilities. In April 2021, Macquarie Capital informed the Company that it had successfully syndicated the Facilities and allocated expected commitments from lenders to be funded in connection with the closing of the Facilities, or the Closing, subject to the execution of final documentation. The Facilities are expected to bear interest at a per annum rate equal to LIBOR (subject to a floor of 0.75%) plus an applicable margin of 5.50%. In addition, the Company expects that it will pay to the lenders (i) holding commitments in respect of the Term Facility, and (ii) an upfront fee at Closing equal to 2.0% of the stated principal amount of the Term Facility. The terms of the Facilities are not final and are subject to entering into final documentation at Closing. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue In the following table, revenue, shown net of grants and scholarships, is disaggregated by type of service provided. The table also includes a reconciliation of the disaggregated revenue with the reportable segments (in thousands): Three Months Ended March 31, 2021 (Unaudited) APEI HCN Intersegment Consolidated Instructional services, net of grants and scholarships $ 76,831 $ 9,365 $ (13) $ 86,183 Graduation fees 373 — — 373 Textbook and other course materials — 1,631 — 1,631 Other fees 218 136 — 354 Total Revenue $ 77,422 $ 11,132 $ (13) $ 88,541 Three Months Ended March 31, 2020 (Unaudited) APEI HCN Intersegment Consolidated Instructional services, net of grants and scholarships $ 66,556 $ 6,101 $ (17) $ 72,640 Graduation fees 326 — — 326 Textbook and other course materials — 1,029 — 1,029 Other fees 212 409 — 621 Total Revenue $ 67,094 $ 7,539 $ (17) $ 74,616 The APEI Segment charges the HCN Segment for the value of courses taken by HCN Segment employees at APUS. The intersegment elimination represents the elimination of this intersegment revenue in consolidation. Contract Balances and Performance Obligations The Company has no contract assets or deferred contract costs as of March 31, 2021 and December 31, 2020. The Company recognizes a contract liability, or deferred revenue, when a student begins an online course or term, in the case of APUS, or starts a term, in the case of HCN. Deferred revenue at March 31, 2021 was $21.7 million and includes $9.0 million in future revenue that has not yet been earned for courses and terms that are in progress, as well as $12.7 million in consideration received in advance for future courses or terms, or student deposits. Deferred revenue at December 31, 2020 was $22.1 million and includes $13.7 million in future revenue that has not yet been earned for courses and terms that are in progress, as well as $8.4 million in student deposits. Deferred revenue represents the Company’s performance obligation to transfer future instructional services to students. The Company’s remaining performance obligations represent the transaction price allocated to future reporting periods. The Company has elected, as a practical expedient, not to disclose additional information about unsatisfied performance obligations for contracts with students that have an expected duration of one year or less. When the Company begins performing its obligations, a contract receivable is created, resulting in accounts receivable on the Company’s Consolidated Balance Sheets. The Company accounts for receivables in accordance with FASB Accounting Standards Codification 310, Receivables, or ASC 310. The Company uses the portfolio approach, a practical expedient, to evaluate if a contract exists and to assess collectability at the time of contract inception based on historical experience. Contracts are subsequently reviewed for collectability if significant events or circumstances indicate a change. The allowance for doubtful accounts is based on management’s evaluation of the status of existing accounts receivable. Among other factors, management considers the age of the receivable, the anticipated source of payment, and historical allowance considerations. Consideration is also given to any specific known risk areas among the existing accounts receivable balances. Recoveries of receivables previously written off are recorded when received. APUS does not charge interest on past due accounts receivable. HCN charges interest on payment plans when a student graduates or otherwise exits the program. Interest income earned on open receivables during the three months ended March 31, 2021 and 2020 was approximately $3,000 and $4,000, respectively. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for office space and campus facilities. Some leases include options to terminate or extend for one or more years. These options are included in the lease term when it is reasonably certain that the option will be exercised. The APEI Segment leases corporate and administrative office space in Maryland and Virginia under operating leases that expire through May 2022. The HCN Segment leases administrative office space in suburban Columbus, Ohio, and leases campuses located in the suburban areas of Akron, Cincinnati, Cleveland, Columbus, Dayton, and Toledo, Ohio and Indianapolis, Indiana under operating leases that expire through June 2029. Operating lease assets are right of use, or ROU, assets, which represent the right to use the underlying assets for the lease term. Operating lease liabilities represent the obligation to make lease payments arising from the lease. Operating leases are included in the Operating lease assets, net, and Operating lease liabilities, current and long-term, on the Consolidated Balance Sheets. These assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. When the lease does not provide an implicit interest rate, the Company uses an incremental borrowing rate based on information available at lease commencement to determine the present value of the lease payments. The ROU assets include all remaining lease payments and exclude lease incentives. Lease expense for operating leases is recognized on a straight-line basis over the lease term. There are no variable lease payments. Lease expense for the three month periods ended March 31, 2021 and 2020 was $0.8 million and $0.7 million, respectively. These costs are primarily related to long-term operating leases, but also include amounts for short-term leases with terms greater than 30 days that are not material. Cash paid for amounts included in the present value of operating lease liabilities during each of the three month periods ended March 31, 2021 and 2020 was $0.7 million and is included in operating cash flows. The following tables present information about the amount and timing of cash flows arising from the Company’s operating leases as of March 31, 2021 (dollars in thousands): Maturity of Lease Liabilities (Unaudited) Lease Payments 2021 (remaining) $ 1,901 2022 2,815 2023 2,059 2024 1,282 2025 852 2026 852 2027 and beyond 1,778 Total future minimum lease payments 11,539 Less imputed interest (1,535) Present value of operating lease liabilities $ 10,004 Balance Sheet Classification (Unaudited) Operating lease liabilities, current $ 2,165 Operating lease liabilities, long-term 7,839 Total operating lease liabilities $ 10,004 Other Information (Unaudited) Weighted average remaining lease term (in years) 5.25 Weighted average discount rate 5.0 % |
Net Income Per Common Share
Net Income Per Common Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net Income Per Common Share Basic net income per common share is based on the weighted average number of shares of common stock outstanding during the period. Diluted net income per common share increases the shares used in the per share calculation by the dilutive effects of restricted stock and option awards. The table below reflects the calculation of the weighted average number of common shares outstanding, on an as if converted basis, used in computing basic and diluted net income per common share (in thousands). Three Months Ended March 31, 2021 2020 (Unaudited) Basic weighted average shares outstanding 16,211 15,024 Effect of dilutive restricted stock and options 211 92 Diluted weighted average shares outstanding 16,422 15,116 The table below reflects a summary of securities that could potentially dilute basic net income per common share in future periods that were not included in the computation of diluted earnings per share because the effect would have been antidilutive. Three Months Ended March 31, 2021 2020 (Unaudited) Antidilutive securities: Stock Options 17,840 43,134 Restricted Shares 3,233 127,632 Total antidilutive securities 21,073 170,766 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has two operating segments that are managed in the following reportable segments: • American Public Education Segment , or APEI Segment ; and • Hondros College of Nursing Segment , or HCN Segment . In accordance with FASB ASC 280, Segment Reporting , the chief operating decision-maker has been identified as the Company’s Chief Executive Officer. The Company’s Chief Executive Officer reviews operating results to make decisions about allocating resources and assessing performance for the APEI and HCN Segments. A summary of financial information by reportable segment is as follows (in thousands): Three Months Ended March 31, 2021 2020 (Unaudited) Revenue: American Public Education Segment $ 77,422 $ 67,094 Hondros College of Nursing Segment 11,132 7,539 Intersegment elimination (13) (17) Total Revenue $ 88,541 $ 74,616 Depreciation and amortization: American Public Education Segment $ 2,503 $ 3,194 Hondros College of Nursing Segment 148 144 Total Depreciation and amortization $ 2,651 $ 3,338 Income (loss) from operations before interest income and income taxes: American Public Education Segment $ 9,854 $ 3,577 Hondros College of Nursing Segment 783 (885) Intersegment elimination — 1 Total income from operations before interest income and income taxes $ 10,637 $ 2,693 Interest income, net: American Public Education Segment $ 112 $ 690 Hondros College of Nursing Segment 2 12 Total Interest income, net $ 114 $ 702 Income tax expense (benefit): American Public Education Segment $ 2,434 $ 1,215 Hondros College of Nursing Segment 205 (241) Total Income tax expense $ 2,639 $ 974 Capital expenditures: American Public Education Segment $ 971 $ 1,745 Hondros College of Nursing Segment 557 124 Total Capital expenditures $ 1,528 $ 1,869 The APEI Segment charges the HCN Segment for the value of courses taken by HCN Segment employees at APUS. The intersegment elimination represents the elimination of this intersegment revenue in consolidation. A summary of the Company’s consolidated assets by reportable segment is as follows (in thousands): As of March 31, 2021 As of December 31, 2020 (Unaudited) Assets: American Public Education Segment $ 410,845 $ 322,544 Hondros College of Nursing Segment 52,354 48,474 Total Assets $ 463,199 $ 371,018 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company accrues for costs associated with contingencies including, but not limited to, regulatory compliance and legal matters when such costs are probable and can be reasonably estimated. Liabilities established to provide for contingencies are adjusted as further information develops, circumstances change, or contingencies are resolved. The Company bases these accruals on management’s estimate of such costs, which may vary from the ultimate costs and expenses, associated with any such contingency. From time to time, the Company is involved in legal matters in the normal course of its business. |
Concentration
Concentration | 3 Months Ended |
Mar. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Concentration | Concentration APUS students utilize various payment sources and programs to finance their educational expenses, including funds from: Department of Defense, or DoD, tuition assistance programs, or TA, education benefit programs administered by the U.S. Department of Veterans Affairs, or VA; and federal student aid from Title IV programs, as well as cash and other sources. Reductions in or changes to TA, VA education benefits, Title IV programs, and other payment sources could have a significant impact on the Company’s operations. As of March 31, 2021, approximately 62% of APUS students self-reported that they served in the military on active duty at the time of initial enrollment. Active duty military students generally take fewer courses per year on average than non-military students. A summary of APEI Segment revenue derived from students by primary funding source for the three month periods ended March 31, 2021 and 2020 is included in the table below (unaudited): Three Months Ended March 31, 2021 2020 DoD tuition assistance programs 45% 41% VA education benefits 21% 23% Title IV programs 20% 23% Cash and other sources 14% 13% A summary of HCN Segment revenue derived from students by primary funding source for the three month periods ended March 31, 2021 and 2020 is included in the table below (unaudited): Three Months Ended March 31, 2021 2020 Title IV programs 81% 81% Cash and other sources 18% 17% VA education benefits 1% 2% |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Accounting | Basis of Presentation and AccountingThe accompanying unaudited, interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP. |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited interim Consolidated Financial Statements include the accounts of APEI and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates 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 these estimates under different assumptions or conditions, and the impact of such differences may be material to the Company’s Consolidated Financial Statements. |
Restricted Cash | Restricted Cash Cash, cash equivalents, and restricted cash includes funds held for students for unbilled educational services that were received from Title IV programs. The Company is required to maintain and restrict these funds pursuant to the terms of the applicable institution’s program participation agreement with ED. |
Investments | Investments The Company periodically evaluates its equity method investment for indicators of an other-than-temporary impairment. Factors the Company considers when evaluating for an other-than-temporary impairment include the duration and severity of the impairment, the reasons for the decline in value, and the potential recovery period. For an investee with impairment indicators, the Company measures fair value on the basis of discounted cash flows or other appropriate valuation methods. If it is probable that the Company will not recover the carrying amount of the investment, the impairment is considered other-than-temporary and recorded in equity investment income (loss), and the equity investment balance is reduced to its fair value. For each reporting period, the Company evaluates its cost method investments for observable price changes. Factors the Company may consider when evaluating an observable price may include significant changes in the regulatory, economic or technological environment, changes in the general market condition, bona fide offers to purchase or sell similar investments, and other criteria. |
Goodwill and Indefinite-lived Intangible Assets | Goodwill and Indefinite-lived Intangible AssetsDuring the three months ended March 31, 2021 and 2020, the Company evaluated events and circumstances related to the valuation of goodwill through March 31, 2021 and 2020, respectively, to determine if there were indicators of impairment. This evaluation included consideration of enrollment trends and financial performance, as well as industry and market conditions, and the impact of the COVID-19 pandemic. |
Stock-based and Incentive-based Compensation | Stock-based Compensation Stock-based payments may include incentive stock options or non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights, performance shares, performance units, cash-based awards, other stock-based awards, including unrestricted shares, or any combination of the foregoing. Stock-based compensation cost is recognized as expense, generally over a three-year vesting period, using the straight-line method for employees and the graded-vesting method for members of the Board of Directors, and is measured using the Company’s closing stock price on the date of the grant. An accelerated one-year period is used to recognize stock-based compensation cost for employees who have reached certain service and retirement eligibility criteria on the date of grant. The fair value of each option award is estimated at the date of grant using a Black-Scholes option-pricing model that uses certain assumptions, including assumptions with respect to expected stock price volatility and the risk-free interest rate. Judgment is required in estimating the percentage of share-based awards that are expected to vest, and in the case of performance stock units, or PSUs, the level of performance that will be achieved and the number of shares that will be earned. The Company estimates forfeitures of share-based awards at the time of grant and revises such estimates in subsequent periods if actual forfeitures differ from original estimates. The forfeiture assumption is ultimately adjusted to the actual forfeiture rate. If actual results differ significantly from these estimates, stock-based compensation expense could be higher and have a material impact on the Company’s Consolidated Financial Statements. Estimates are subjective and are not intended to predict actual future events, and subsequent events are not indicative of the reasonableness of the original estimates of fair value. Stock-based compensation expense for the three months ended March 31, 2021 and 2020 was as follows (in thousands): Three Months Ended March 31, 2021 2020 (Unaudited) Instructional costs and services $ 466 $ 478 Selling and promotional 309 258 General and administrative 1,405 1,014 Stock-based compensation expense in operating income $ 2,180 $ 1,750 Incentive-based Compensation |
Income Taxes | Income Taxes The Company determines its interim tax provision by applying the estimated income tax rate expected for the full calendar year to income before income taxes for the period adjusted for discrete items. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates, or ASUs, issued by the Financial Accounting Standards Board, or FASB. All ASUs issued subsequent to the filing of the Annual Report on March 9, 2021 were assessed and determined to be either inapplicable or not expected to have a material impact on the Company’s consolidated financial position and/or results of operations. |
Commitments and Contingencies | Commitments and Contingencies The Company accrues for costs associated with contingencies including, but not limited to, regulatory compliance and legal matters when such costs are probable and can be reasonably estimated. Liabilities established to provide for contingencies are adjusted as further information develops, circumstances change, or contingencies are resolved. The Company bases these accruals on management’s estimate of such costs, which may vary from the ultimate costs and expenses, associated with any such contingency. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of stock-based compensation cost charged against income | Stock-based compensation expense for the three months ended March 31, 2021 and 2020 was as follows (in thousands): Three Months Ended March 31, 2021 2020 (Unaudited) Instructional costs and services $ 466 $ 478 Selling and promotional 309 258 General and administrative 1,405 1,014 Stock-based compensation expense in operating income $ 2,180 $ 1,750 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | In the following table, revenue, shown net of grants and scholarships, is disaggregated by type of service provided. The table also includes a reconciliation of the disaggregated revenue with the reportable segments (in thousands): Three Months Ended March 31, 2021 (Unaudited) APEI HCN Intersegment Consolidated Instructional services, net of grants and scholarships $ 76,831 $ 9,365 $ (13) $ 86,183 Graduation fees 373 — — 373 Textbook and other course materials — 1,631 — 1,631 Other fees 218 136 — 354 Total Revenue $ 77,422 $ 11,132 $ (13) $ 88,541 Three Months Ended March 31, 2020 (Unaudited) APEI HCN Intersegment Consolidated Instructional services, net of grants and scholarships $ 66,556 $ 6,101 $ (17) $ 72,640 Graduation fees 326 — — 326 Textbook and other course materials — 1,029 — 1,029 Other fees 212 409 — 621 Total Revenue $ 67,094 $ 7,539 $ (17) $ 74,616 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Minimum rental commitments | The following tables present information about the amount and timing of cash flows arising from the Company’s operating leases as of March 31, 2021 (dollars in thousands): Maturity of Lease Liabilities (Unaudited) Lease Payments 2021 (remaining) $ 1,901 2022 2,815 2023 2,059 2024 1,282 2025 852 2026 852 2027 and beyond 1,778 Total future minimum lease payments 11,539 Less imputed interest (1,535) Present value of operating lease liabilities $ 10,004 Balance Sheet Classification (Unaudited) Operating lease liabilities, current $ 2,165 Operating lease liabilities, long-term 7,839 Total operating lease liabilities $ 10,004 |
Schedule of information related to leases | Other Information (Unaudited) Weighted average remaining lease term (in years) 5.25 Weighted average discount rate 5.0 % |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The table below reflects the calculation of the weighted average number of common shares outstanding, on an as if converted basis, used in computing basic and diluted net income per common share (in thousands). Three Months Ended March 31, 2021 2020 (Unaudited) Basic weighted average shares outstanding 16,211 15,024 Effect of dilutive restricted stock and options 211 92 Diluted weighted average shares outstanding 16,422 15,116 |
Schedule of antidilutive securities | The table below reflects a summary of securities that could potentially dilute basic net income per common share in future periods that were not included in the computation of diluted earnings per share because the effect would have been antidilutive. Three Months Ended March 31, 2021 2020 (Unaudited) Antidilutive securities: Stock Options 17,840 43,134 Restricted Shares 3,233 127,632 Total antidilutive securities 21,073 170,766 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of financial information by reportable segment | A summary of financial information by reportable segment is as follows (in thousands): Three Months Ended March 31, 2021 2020 (Unaudited) Revenue: American Public Education Segment $ 77,422 $ 67,094 Hondros College of Nursing Segment 11,132 7,539 Intersegment elimination (13) (17) Total Revenue $ 88,541 $ 74,616 Depreciation and amortization: American Public Education Segment $ 2,503 $ 3,194 Hondros College of Nursing Segment 148 144 Total Depreciation and amortization $ 2,651 $ 3,338 Income (loss) from operations before interest income and income taxes: American Public Education Segment $ 9,854 $ 3,577 Hondros College of Nursing Segment 783 (885) Intersegment elimination — 1 Total income from operations before interest income and income taxes $ 10,637 $ 2,693 Interest income, net: American Public Education Segment $ 112 $ 690 Hondros College of Nursing Segment 2 12 Total Interest income, net $ 114 $ 702 Income tax expense (benefit): American Public Education Segment $ 2,434 $ 1,215 Hondros College of Nursing Segment 205 (241) Total Income tax expense $ 2,639 $ 974 Capital expenditures: American Public Education Segment $ 971 $ 1,745 Hondros College of Nursing Segment 557 124 Total Capital expenditures $ 1,528 $ 1,869 |
Summary of consolidated assets by reportable segment | A summary of the Company’s consolidated assets by reportable segment is as follows (in thousands): As of March 31, 2021 As of December 31, 2020 (Unaudited) Assets: American Public Education Segment $ 410,845 $ 322,544 Hondros College of Nursing Segment 52,354 48,474 Total Assets $ 463,199 $ 371,018 |
Concentration (Tables)
Concentration (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
American Public Education Segment | |
Concentration Risk [Line Items] | |
Summary of APEI segment revenue | A summary of APEI Segment revenue derived from students by primary funding source for the three month periods ended March 31, 2021 and 2020 is included in the table below (unaudited): Three Months Ended March 31, 2021 2020 DoD tuition assistance programs 45% 41% VA education benefits 21% 23% Title IV programs 20% 23% Cash and other sources 14% 13% |
Hondros College of Nursing Segment | |
Concentration Risk [Line Items] | |
Summary of APEI segment revenue | A summary of HCN Segment revenue derived from students by primary funding source for the three month periods ended March 31, 2021 and 2020 is included in the table below (unaudited): Three Months Ended March 31, 2021 2020 Title IV programs 81% 81% Cash and other sources 18% 17% VA education benefits 1% 2% |
Nature of the Business (Details
Nature of the Business (Details) | 3 Months Ended |
Mar. 31, 2021subsidiarycampussegmentstudent | |
Segment Reporting Information [Line Items] | |
Number of students | student | 93,800 |
Number of subsidiaries | subsidiary | 2 |
Number of reportable segments | segment | 2 |
Hondros College of Nursing Segment | |
Segment Reporting Information [Line Items] | |
Number of campuses | campus | 6 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Restricted cash | $ 1,000,000 | $ 1,200,000 | |
Goodwill and intangible asset impairment | $ 0 | $ 0 | |
Options previously granted vesting period | 3 years | ||
Award accelerated service period | 1 year | ||
Stock-based compensation expense in operating income | $ 2,180,000 | 1,750,000 | |
Incentive-Based Compensation Plan | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense in operating income | 1,200,000 | $ 1,300,000 | |
COVID-19 | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Equity method investment impairments | 0 | ||
Cost method investment impairments | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense in operating income | $ 2,180 | $ 1,750 |
Instructional costs and services | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense in operating income | 466 | 478 |
Selling and promotional | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense in operating income | 309 | 258 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense in operating income | $ 1,405 | $ 1,014 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Common Stock (Details) - Public Stock Offering $ / shares in Units, shares in Thousands, $ in Millions | Mar. 01, 2021USD ($)$ / sharesshares |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Shares issued in public offering (in shares) | shares | 3,680 |
Sale of stock, price (in dollars per share) | $ / shares | $ 25 |
Consideration received in transaction | $ | $ 86.2 |
Acquisition Activity (Details)
Acquisition Activity (Details) $ in Millions | Oct. 28, 2020USD ($)statestudentcampus | Apr. 30, 2021 | Mar. 31, 2021student |
Business Acquisition [Line Items] | |||
Number of students | student | 93,800 | ||
Medium-term Notes | Senior Secured Term Loan Facility Member | US Government Debt Securities | |||
Business Acquisition [Line Items] | |||
Principal amount | $ 175 | ||
Line of Credit | Senior Secured Term Loan Facility Member | Revolving Credit Facility | |||
Business Acquisition [Line Items] | |||
Principal amount | $ 20 | ||
Line of Credit | Senior Secured Term Loan Facility Member | Revolving Credit Facility | Subsequent Event | |||
Business Acquisition [Line Items] | |||
LIBOR floor | 0.75% | ||
Upfront fee percent | 2.00% | ||
Line of Credit | Senior Secured Term Loan Facility Member | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Subsequent Event | |||
Business Acquisition [Line Items] | |||
Applicable interest rate | 5.50% | ||
Rasmussen University Member | |||
Business Acquisition [Line Items] | |||
Number of students | student | 18,000 | ||
Number of campuses | campus | 24 | ||
Number of states | state | 6 | ||
Cash consideration | $ 300 | ||
Consideration of shares | 29 | ||
Rasmussen University Member | Maximum | |||
Business Acquisition [Line Items] | |||
Additional cash consideration | $ 29 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 88,541 | $ 74,616 |
Instructional services, net of grants and scholarships | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 86,183 | 72,640 |
Graduation fees | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 373 | 326 |
Textbook and other course materials | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 1,631 | 1,029 |
Other fees | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 354 | 621 |
Intersegment | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | (13) | (17) |
Intersegment | Instructional services, net of grants and scholarships | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | (13) | (17) |
Intersegment | Graduation fees | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 0 | 0 |
Intersegment | Textbook and other course materials | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 0 | 0 |
Intersegment | Other fees | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 0 | 0 |
APEI | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 77,422 | 67,094 |
APEI | Operating Segments | Instructional services, net of grants and scholarships | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 76,831 | 66,556 |
APEI | Operating Segments | Graduation fees | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 373 | 326 |
APEI | Operating Segments | Textbook and other course materials | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 0 | 0 |
APEI | Operating Segments | Other fees | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 218 | 212 |
HCN | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 11,132 | 7,539 |
HCN | Operating Segments | Instructional services, net of grants and scholarships | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 9,365 | 6,101 |
HCN | Operating Segments | Graduation fees | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 0 | 0 |
HCN | Operating Segments | Textbook and other course materials | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 1,631 | 1,029 |
HCN | Operating Segments | Other fees | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 136 | $ 409 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Contract assets | $ 0 | $ 0 | |
Deferred revenue | 21,676,000 | 22,104,000 | |
Interest income earned | 3,000 | $ 4,000 | |
Courses in Progress | |||
Disaggregation of Revenue [Line Items] | |||
Future revenue | 9,000,000 | 13,700,000 | |
Future Courses | |||
Disaggregation of Revenue [Line Items] | |||
Future revenue | $ 12,700,000 | $ 8,400,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Variable lease payments | $ 0 | |
Lease expense | 800,000 | $ 700,000 |
Cash paid for amounts included in operating lease liabilities | $ 700,000 | $ 700,000 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2021 (remaining) | $ 1,901 | |
2022 | 2,815 | |
2023 | 2,059 | |
2024 | 1,282 | |
2025 | 852 | |
2026 | 852 | |
2027 and beyond | 1,778 | |
Total future minimum lease payments | 11,539 | |
Less imputed interest | (1,535) | |
Present value of operating lease liabilities | 10,004 | |
Operating lease liabilities, current | 2,165 | $ 2,392 |
Operating lease liabilities, long-term | $ 7,839 | $ 6,455 |
Leases - Other Information (Det
Leases - Other Information (Details) | Mar. 31, 2021 |
Leases [Abstract] | |
Weighted average remaining lease term (in years) | 5 years 3 months |
Weighted average discount rate | 5.00% |
Net Income Per Common Share - S
Net Income Per Common Share - Schedule of Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Basic weighted average shares outstanding (in shares) | 16,211,000 | 15,024,000 |
Effect of dilutive restricted stock (in shares) | 211,000 | 92,000 |
Diluted weighted average shares outstanding (in shares) | 16,422,000 | 15,116,000 |
Net Income Per Common Share - A
Net Income Per Common Share - Antidilutive Securities (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive stock options (in shares) | 21,073 | 170,766 |
Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive stock options (in shares) | 17,840 | 43,134 |
Restricted Shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive stock options (in shares) | 3,233 | 127,632 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2021segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Information - Summary o
Segment Information - Summary of Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue: | ||
Total Revenue | $ 88,541 | $ 74,616 |
Depreciation and amortization: | ||
Total Depreciation and amortization | 2,651 | 3,338 |
Income (loss) from operations before interest income and income taxes: | ||
Total income from operations before interest income and income taxes | 10,637 | 2,693 |
Interest income, net: | ||
Total Interest income, net | 114 | 702 |
Income tax expense (benefit): | ||
Total Income tax expense | 2,639 | 974 |
Capital expenditures: | ||
Total Capital expenditures | 1,528 | 1,869 |
Intersegment elimination | ||
Revenue: | ||
Total Revenue | (13) | (17) |
Income (loss) from operations before interest income and income taxes: | ||
Total income from operations before interest income and income taxes | 0 | 1 |
American Public Education Segment | ||
Depreciation and amortization: | ||
Total Depreciation and amortization | 2,503 | 3,194 |
Interest income, net: | ||
Total Interest income, net | 112 | 690 |
Income tax expense (benefit): | ||
Total Income tax expense | 2,434 | 1,215 |
Capital expenditures: | ||
Total Capital expenditures | 971 | 1,745 |
American Public Education Segment | Operating Segments | ||
Revenue: | ||
Total Revenue | 77,422 | 67,094 |
Income (loss) from operations before interest income and income taxes: | ||
Total income from operations before interest income and income taxes | 9,854 | 3,577 |
Hondros College of Nursing Segment | ||
Depreciation and amortization: | ||
Total Depreciation and amortization | 148 | 144 |
Interest income, net: | ||
Total Interest income, net | 2 | 12 |
Income tax expense (benefit): | ||
Total Income tax expense | 205 | (241) |
Capital expenditures: | ||
Total Capital expenditures | 557 | 124 |
Hondros College of Nursing Segment | Operating Segments | ||
Revenue: | ||
Total Revenue | 11,132 | 7,539 |
Income (loss) from operations before interest income and income taxes: | ||
Total income from operations before interest income and income taxes | $ 783 | $ (885) |
Segment Information - Summary_2
Segment Information - Summary of Consolidated Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Total Assets | $ 463,199 | $ 371,018 |
American Public Education Segment | ||
Assets: | ||
Total Assets | 410,845 | 322,544 |
Hondros College of Nursing Segment | ||
Assets: | ||
Total Assets | $ 52,354 | $ 48,474 |
Concentration (Details)
Concentration (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
American Public Education Segment | ||
Concentration Risk [Line Items] | ||
Percentage of students served in military on active duty at time of initial enrollment (in percent) | 62.00% | |
Customer Concentration Risk | Revenue | American Public Education Segment | DoD tuition assistance programs | ||
Concentration Risk [Line Items] | ||
Percentage of segment revenue (in percent) | 45.00% | 41.00% |
Customer Concentration Risk | Revenue | American Public Education Segment | VA education benefits | ||
Concentration Risk [Line Items] | ||
Percentage of segment revenue (in percent) | 21.00% | 23.00% |
Customer Concentration Risk | Revenue | American Public Education Segment | Title IV programs | ||
Concentration Risk [Line Items] | ||
Percentage of segment revenue (in percent) | 20.00% | 23.00% |
Customer Concentration Risk | Revenue | American Public Education Segment | Cash and other sources | ||
Concentration Risk [Line Items] | ||
Percentage of segment revenue (in percent) | 14.00% | 13.00% |
Customer Concentration Risk | Revenue | Hondros College of Nursing Segment | VA education benefits | ||
Concentration Risk [Line Items] | ||
Percentage of segment revenue (in percent) | 1.00% | 2.00% |
Customer Concentration Risk | Revenue | Hondros College of Nursing Segment | Title IV programs | ||
Concentration Risk [Line Items] | ||
Percentage of segment revenue (in percent) | 81.00% | 81.00% |
Customer Concentration Risk | Revenue | Hondros College of Nursing Segment | Cash and other sources | ||
Concentration Risk [Line Items] | ||
Percentage of segment revenue (in percent) | 18.00% | 17.00% |