Exhibit 99.2
Ahead of the Curve. Online higher educationfor a complex world. Third Quarter 2009Conference Call November 5, 2009
Statements made in this presentation regarding American Public Education, 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", "could", "estimate", "expect“, "intend", "may", "should“, "will" and "would". These forward-looking statements include, without limitation, statements on the slides “Fourth Quarter 2009 Outlook” and “Full Year 2009 Outlook” and statements regarding expected growth. 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, 2008 as filed 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. Safe Harbor Statement
Operational Highlights & Recent Developments Strong 3Q2009 Enrollment and Net Course Registration Growth Net course registrations1 increased 42% Net course registrations from new students2 increased 41% Total student enrollment3 increased 44% to 59,300 Launched MA in Legal Studies and BA in General Studies APUS recognized by The Sloan Consortium, a renowned non-profit group of higher education institutions, for its excellence in online learning First for-profit institution to receive The Sloan Consortium’s top honor APUS among a distinctive list of institutions earning Sloan’s top honors Dr. Phil Ice, APUS Director of Course Design, Research & Development, awarded the 2009 Sloan-C Effective Practice Award for Using the Community of Inquiry Framework Survey for Multi-Level Institutional Evaluation and Continuous Quality Improvement 1 Net course registrations represent the aggregate number of classes in which students remain enrolled after the date by which they may drop the course without financial penalty. 2 Net course registrations from new students represents net course registrations from students registering in courses for the first time. Students who register for courses subsequent to their first monthly start are not considered new students. 3 Total student enrollment is the number of students who have completed at least one course in the last 12 months or are in the start of the second week of class for the most current semester.
Operational Highlights & Recent Developments International Association of Emergency Managers (IAEM) honored the APUS Emergency and Disaster Management Program with the 2009 Academic Recognition Award. Ranked Ninth in America’s 200 Best Small Companies by Forbes.com Launched new website, redesigned for changing mix of students Graduate tuition for courses beginning in April 2010 or later will increase to $300 per credit hour ($900 per 3 credit course)
Strong Interest from Military and Civilian Students in Q3 Expanding Leadership Among Institutions Serving the MilitaryNet course registrations from students using TA increased 32% Extended office and visitation hours at several military basesNew military spouse program generating increased enrollmentSuccessful Execution of Civilian Strategy Net course registrations from students using Title IV grew 95% Strong lead flow from civilians continuesIncreasing percentage of leads from traditional students (18-24 years) “Students by Type” represent the category which students self identify at the time of registration.As of September 2009
Focused on Long-Term Performance and Success Affordability, Product Differentiation & Value 76 Degree programs, including liberal arts and other “unique” degrees No undergraduate tuition increase since 2002 Low fees and a book grant program for most undergraduate students Quality Academic Programs and Customer Focus High student satisfaction and student referral rates Consultative approach to student enrollment Continued pursuit of specialty accreditations Transparent and data-driven approach to measuring student outcomes MAPP NSSE Community of Inquiry Framework Survey (COI) Major Field Tests Transparency by Design
APEI Reports Solid Third Quarter 2009 Results Revenues increased 33% to $36.5 million Income from operations before interest income and income taxes increased 35% to $8.4 million Net Income increases 31% to $5.0 millionReports Earnings of $0.27 per diluted share Strong Balance Sheet: No long-term debt Increasing cash balance Refining Full Year 2009 Outlook
Continued Strong Margins
Strong Balance Sheet with No Debt Cash & Cash Equivalents $63.8 $47.7Total Assets $105.1 $78.8Total Long-Term Debt $0 $0 Depreciation and Amortization $3.9 $3.0CAPEX $8.6 $6.9 ($ in millions) As of Sept 30, As of December 31, 2009 2008 Nine Months Ended Sept 30, 2009 2008
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. 4th Quarter 2009 % GrowthNet Course Registrations from New Students approx. 13,600 37%Net Course Registrations approx. 58,000 38%Total Revenue approx. $42.7 million 36%Net Income (1) approx. $7.9 million 57%EPS – Fully Diluted (1) approx. $0.42Weighted Ave. Shares Outstanding approx. 19.0 million shares
Fourth Quarter 2009 Outlook
Includes stock-based compensation expense of approximately $560,000
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. Full Year 2009 % GrowthNet Course Registrations from New Students approx. 50,000 36%Net Course Registrations approx. 207,800 41%Total Revenue approx. $148.0 million 38%Net Income (1) approx. $23.5 million 45%EPS – Fully Diluted (1) approx. $1.24Weighted Ave. Shares Outstanding: approx. 18.9 million shares Depreciation and Amortization Expense $5.3 to 5.5 million Capital Expenditures $8 to 10 million**excludes approximately $10 million of possible new real estate expenditures over the next 18-24 months. Refines Full Year 2009 Outlook (1) Includes stock-based compensation expense of approximately $2.2 million
Ahead of the Curve. Online higher education for a complex world.