Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 6-May-14 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'APEI | ' |
Entity Registrant Name | 'AMERICAN PUBLIC EDUCATION INC | ' |
Entity Central Index Key | '0001201792 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 17,476,136 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $99,680 | $94,820 |
Accounts receivable, net of allowance of $15,261 in 2014 and $13,175 in 2013 | 13,346 | 9,520 |
Prepaid expenses | 6,627 | 5,598 |
Income tax receivable | ' | 3,215 |
Deferred income taxes | 6,190 | 3,432 |
Total current assets | 125,843 | 116,585 |
Property and equipment, net | 91,827 | 90,733 |
Notes receivable | 6,380 | 6,000 |
Investments | 10,674 | 10,597 |
Goodwill | 38,148 | 38,148 |
Other assets, net | 9,385 | 9,592 |
Total assets | 282,257 | 271,655 |
Current liabilities: | ' | ' |
Accounts payable | 12,411 | 11,563 |
Accrued liabilities | 11,526 | 17,866 |
Income taxes payable | 1,928 | ' |
Deferred revenue and student deposits | 26,479 | 24,829 |
Total current liabilities | 52,344 | 54,258 |
Deferred income taxes | 13,589 | 10,328 |
Total liabilities | 65,933 | 64,586 |
Commitments and contingencies (Note 2) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $.01 par value; Authorized shares - 10,000; no shares issued or outstanding | ' | ' |
Common stock, $.01 par value; Authorized shares - 100,000; 17,640 issued and outstanding in 2014; 17,578 issued and outstanding in 2013 | 176 | 176 |
Additional paid-in capital | 165,143 | 164,913 |
Retained earnings | 51,005 | 41,980 |
Total stockholders' equity | 216,324 | 207,069 |
Total liabilities and stockholders' equity | $282,257 | $271,655 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Accounts receivable, allowance | $15,261 | $13,175 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, Authorized shares | 10,000 | 10,000 |
Preferred stock, shares issued | ' | ' |
Preferred stock, shares outstanding | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, Authorized shares | 100,000 | 100,000 |
Common stock, issued | 17,640 | 17,578 |
Common stock, outstanding | 17,640 | 17,578 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues | $88,553 | $83,840 |
Costs and expenses: | ' | ' |
Instructional costs and services | 31,348 | 28,405 |
Selling and promotional | 17,067 | 16,539 |
General and administrative | 19,524 | 17,479 |
Depreciation and amortization | 3,889 | 3,207 |
Total costs and expenses | 71,828 | 65,630 |
Income from operations before interest income and income taxes | 16,725 | 18,210 |
Interest income, net | 81 | 64 |
Income before income taxes | 16,806 | 18,274 |
Income tax expense | 6,327 | 6,850 |
Equity investment loss, net of taxes | 43 | 48 |
Net income | $10,436 | $11,376 |
Net Income per common share: | ' | ' |
Basic | $0.59 | $0.64 |
Diluted | $0.59 | $0.63 |
Weighted average number of common shares: | ' | ' |
Basic | 17,599,199 | 17,764,330 |
Diluted | 17,805,473 | 17,999,961 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating activities | ' | ' |
Net income | $10,436 | $11,376 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' |
Depreciation and amortization | 3,889 | 3,207 |
Stock-based compensation | 1,156 | 1,015 |
Investment loss | 43 | 48 |
Deferred income taxes | 486 | 2,122 |
Other | 35 | 84 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable, net of allowance for bad debt | -3,826 | -1,783 |
Prepaid expenses and other assets | -1,071 | -940 |
Income tax receivable | 3,215 | 4,567 |
Accounts payable | 848 | -2,004 |
Accrued liabilities | -6,340 | -385 |
Income taxes payable | 1,928 | ' |
Deferred revenue and student deposits | 1,650 | 3,296 |
Net cash provided by operating activities | 12,449 | 20,603 |
Investing activities | ' | ' |
Capital expenditures | -4,612 | -5,947 |
Equity investment | -120 | -4,000 |
Note Receivable | -380 | ' |
Capitalized program development costs and other assets | -128 | -88 |
Net cash used in investing activities | -5,240 | -10,035 |
Financing activities | ' | ' |
Cash paid for repurchase of common/restricted stock | -2,647 | -5,770 |
Cash received from issuance of common stock | 45 | 769 |
Excess tax benefit from stock-based compensation | 253 | 82 |
Net cash used in financing activities | -2,349 | -4,919 |
Net increase in cash and cash equivalents | 4,860 | 5,649 |
Cash and cash equivalents at beginning of period | 94,820 | 114,901 |
Cash and cash equivalents at end of period | 99,680 | 120,550 |
Supplemental disclosure of cash flow information | ' | ' |
Income taxes paid | $412 | $79 |
Nature_of_the_Business
Nature of the Business | 3 Months Ended | ||
Mar. 31, 2014 | |||
Nature of the Business | ' | ||
1. 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 115,000 students through the operations of two subsidiaries: | |||
● | American Public University System, Inc., or APUS, provides exclusively online postsecondary education directed primarily at the needs of the military and public safety communities through American Military University, or AMU, and American Public University, or APU. APUS is regionally accredited by the Higher Learning Commission and is a member of the North Central Association of Colleges and Schools. | ||
● | National Education Seminars, Inc., or NES, which is referred to in these financial statements as Hondros College, Nursing Programs, or HCON, provides on-campus nursing education to students at four campuses in Ohio as well as online to serve the needs of the nursing and healthcare community. HCON is nationally accredited by the Accrediting Council of Independent Colleges and Schools. HCON was acquired by APEI on November 1, 2013. | ||
The Company’s institutions are licensed or otherwise authorized to offer postsecondary education programs by state authorities to the extent the Company believes such authorizations are required and are certified by the 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. | |||
Our operations are organized into two reportable segments: | |||
● | American Public Education Segment, or APEI Segment. This segment reflects the historical operations of APEI prior to the acquisition of HCON and reflects operational activities at APUS, other corporate activities, and minority investments. | ||
● | Hondros College, Nursing Programs Segment, or HCON Segment. This segment reflects the operational activities of HCON. The Company acquired HCON on November 1, 2013, and therefore the consolidated results for periods prior to November 1, 2013 do not include any results from HCON. |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Basis of Presentation | ' |
2. Basis of Presentation | |
The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP. All intercompany transactions have been eliminated in consolidation. The financial statements do not include all of the information and footnotes required by GAAP for complete 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 consolidated results of operations, financial position 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, 2014. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and footnotes in its audited financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2013. | |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. | |
Recent Accounting Pronouncements | |
There have been no applicable pronouncements since the Company's Annual Report on Form 10-K for the year ended December 31, 2013. | |
Investments | |
On February 20, 2013, the Company made a $4.0 million investment in preferred stock of Fidelis Education, Inc. or Fidelis Education, representing approximately 21.6% of its fully diluted equity. Fidelis Education is developing a technology platform that will assist working adult students with education advising and career mentoring services as they pursue college degrees. In connection with the investment, the Company is entitled to certain rights, including right to representation on the Board of Directors. The Company recorded the investment at cost and records its share of earnings or losses in the investee in the periods for which they are reported with a corresponding adjustment in the carrying amount of the investment. | |
Notes Receivable | |
The Company evaluates loans receivables by analyzing the borrower's creditworthiness, cash flows and financial status, and the condition and estimated value of the collateral. The Company considers a loan to be impaired when, based upon current information and events, the Company believes it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. | |
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 cost and expenses associated with any such contingency. | |
From time to time, the Company may be involved in litigation in the normal course of its business. The Company is not aware of any pending or threatened litigation matters that the resolution of which, in the opinion of management, will have a material adverse effect on the Company’s business, operations, financial condition or cash flows. | |
On or about November 18, 2013, a putative class action styled Tabatha Vickery, Bryan Lynn, on behalf of themselves and a similarly situated class v. Hondros College, Inc. and John G. Hondros, was filed in the Court of Common Pleas, Cuyahoga County, Ohio, case no. CV 13 817299. National Education Seminars, Inc., which operates as Hondros College, Nursing Programs, or HCON, was not named in the lawsuit, but a member of HCON’s board of directors, John Hondros, was named in the lawsuit, and the allegations made in the complaint relate to HCON’s operations and not the operations of the entity named in the lawsuit. The lawsuit asserts claims for fraud and fraudulent inducement, negligent misrepresentation, breach of implied-in-fact contract, promissory estoppel, unjust enrichment, and violation of the Ohio Consumer Sales Practices Act, for, among other things, the alleged provision of false or misleading information to the named plaintiffs and other putative class members in 2011 and 2012 regarding the status of accreditation by National League for Nursing Accrediting Commission of HCON’s Associate Degree in Nursing, or ADN, program offered at its Independence, Ohio campus. The plaintiffs allege that the putative class consists of more than 60 former students who in the summer or fall quarters of 2011 enrolled in the ADN or the licensed practical nursing, or LPN, program at the Independence campus with the intention of pursuing a degree in nursing, but who withdrew from the ADN or LPN program. On February 11, 2014, the plaintiffs filed their First Amended Complaint, which removed Hondros College, Inc. as a defendant and added HCON as a defendant. On February 24, 2014, the defendants filed a motion to dismiss with prejudice the plaintiffs’ First Amended Complaint. On April 1, 2014, the plaintiffs filed their opposition to the motion to dismiss. On April 10, 2014, the defendants filed their reply brief in support of the motion to dismiss. The Company is currently unable to estimate the likelihood or range of reasonably probable loss, if any, for this matter. The Company does not believe, based on currently available information, that the outcome of this proceeding, if adverse to HCON, would have a material adverse effect on the Company’s financial condition. | |
Concentration | |
Approximately 36% of the Company’s revenues for the three-month period ended March 31, 2014 were derived from students who received tuition assistance from tuition assistance programs sponsored by the United States Department of Defense, or DoD, compared to approximately 39% of the Company’s revenues for the three-month period ended March 31, 2013. Approximately 17% of the Company’s revenues for the three-month period ended March 31, 2014 was derived from students who were eligible for veterans benefits, compared to approximately 15% of the Company’s revenues for the three-month period ended March 31, 2013. Approximately 35% of the Company’s revenues for the three-month period ended March 31, 2014 was derived from students using financial aid under the Title IV programs, compared to 35% for the three-month period ended March 31, 2013. A reduction in any of these programs or a change in the benefits allowed to students thereunder could have a significant impact on the Company’s operations. |
Net_Income_Per_Common_Share
Net Income Per Common Share | 3 Months Ended |
Mar. 31, 2014 | |
Net Income Per Common Share | ' |
3. 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 options and restricted stock. Stock options are not included in the computation of diluted earnings per share when their effect is anti-dilutive. There were no anti-dilutive stock options excluded from the calculation for the three months ended March 31, 2014, compared to 252,431 anti-dilutive stock options excluded from the calculation for the three months ended March 31, 2013. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Taxes | ' |
4. Income Taxes | |
The Company is subject to U.S. Federal income taxes as well as income taxes of multiple state jurisdictions. For Federal and state tax purposes, the tax years from 2010 to 2013 remain open to examination. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
5. Stock-Based Compensation | |||||||||||||||||
On March 15, 2011, the Board of Directors adopted the American Public Education, Inc. 2011 Omnibus Incentive Plan, or the “2011 Incentive Plan”, and the Company's stockholders approved the 2011 Incentive Plan on May 6, 2011, at which time the 2011 Incentive Plan became effective. Upon effectiveness of the 2011 Incentive Plan, the Company ceased making awards under the American Public Education, Inc. 2007 Omnibus Incentive Plan, or the “2007 Incentive Plan". The 2011 Incentive Plan allows APEI to grant up to 2,000,000 shares plus any shares of common stock that are subject to outstanding awards under the American Public Education, Inc. 2002 Stock Incentive Plan, or the “2002 Stock Plan”, or the 2007 Incentive Plan that terminate due to expiration, forfeiture, cancellation or otherwise without the issuance of such shares. As of March 31, 2014, there were 490,753 shares subject to outstanding awards under the 2002 Stock Plan and the 2007 Incentive Plan and 258,513 shares subject to outstanding awards under the 2011 Incentive Plan. Awards under the 2011 Incentive Plan may include the following award types: stock options, which may be either incentive stock options or nonqualified 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 expense related to restricted stock grants is expensed over the vesting period using the straight-line method for Company employees and the graded-vesting method for members of the Board of Directors and is measured using the Company's stock price 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. Prior to 2012, the Company calculated the expected term of stock option awards using the “simplified method” in accordance with Staff Accounting Bulletins No. 107 and 110 because the Company lacked sufficient historical data and was unable to make reasonable expectations regarding the future. The Company also estimates forfeitures of share-based awards at the time of grant and revises such estimates in subsequent periods if actual forfeitures differ from original projections. The Company makes assumptions with respect to expected stock price volatility based on the average historical volatility of peers with similar attributes. In addition, the Company determines the risk-free interest rate by selecting the U.S. Treasury five-year constant maturity, quoted on an investment basis in effect at the time of grant for that business day. Estimates of fair value 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 made under FASB ASC Topic 718. In the three-month periods ended March 31, 2014 and March 31, 2013 there were no options granted. | |||||||||||||||||
Options granted through March 31, 2014 vest ratably over periods of three to five years and expire in seven to ten years from the date of grant. Option activity is summarized as follows (unaudited): | |||||||||||||||||
Number | Weighted | Weighted- | Aggregate | ||||||||||||||
of Options | Average | Average | Intrinsic | ||||||||||||||
Exercise Price | Contractual | Value | |||||||||||||||
Life (Yrs) | (In thousands) | ||||||||||||||||
Outstanding, December 31, 2013 | 501,202 | $ | 28.82 | ||||||||||||||
Options granted | — | $ | — | ||||||||||||||
Awards exercised | (10,449 | ) | $ | 4.29 | |||||||||||||
Awards forfeited | — | $ | — | ||||||||||||||
Outstanding, March 31, 2014 | 490,753 | $ | 29.34 | 2.82 | $ | 3,334 | |||||||||||
Exercisable, March 31, 2014 | 490,753 | $ | 29.34 | 2.82 | $ | 3,334 | |||||||||||
The following table summarizes information regarding stock option exercises (unaudited): | |||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Proceeds from stock options exercised | $ | 45 | $ | 770 | |||||||||||||
Intrinsic value of stock options exercised | $ | 405 | $ | 495 | |||||||||||||
Tax benefit from exercises | $ | 1 | $ | 196 | |||||||||||||
The table below summarizes the restricted stock activity for the three months ended March 31, 2014 (unaudited): | |||||||||||||||||
Number | Weighted-Average | ||||||||||||||||
of Shares | Grant Price | ||||||||||||||||
and Fair Value | |||||||||||||||||
Non-vested, December 31, 2013 | 190,761 | $ | 38.61 | ||||||||||||||
Shares granted | 148,520 | $ | 44.45 | ||||||||||||||
Vested shares | (79,864 | ) | $ | 38.81 | |||||||||||||
Shares forfeited | (904 | ) | $ | 41.87 | |||||||||||||
Non-vested, March 31, 2014 | 258,513 | $ | 41.89 | ||||||||||||||
Stock-based compensation cost charged against income during the three-month periods ended March 31, 2014 and March 31, 2013 is as follows (unaudited): | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Instructional costs and services | $ | 290 | $ | 205 | |||||||||||||
Marketing and promotional | 126 | 107 | |||||||||||||||
General and administrative | 740 | 703 | |||||||||||||||
Stock-based compensation expense in operating income | 1,156 | 1,015 | |||||||||||||||
Tax benefit | (458 | ) | (402 | ) | |||||||||||||
Stock-based compensation expense, net of tax | $ | 698 | $ | 613 | |||||||||||||
As of March 31, 2014, there was $9.8 million of total unrecognized compensation cost, representing unrecognized compensation cost associated with non-vested restricted stock. The total remaining cost is expected to be recognized over a weighted average period of 2.2 years. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Information | ' | ||||||||
Note 6. Segment Information | |||||||||
On November 1, 2013, APEI acquired HCON and subsequently revised the Company’s segment reporting to maintain consistency with the method management uses to evaluate performance and allocate resources, as well as to provide additional information to shareholders. Accordingly, the Company has identified two operating segments that are managed in the following reportable segments: | |||||||||
● | American Public Education Segment, or APEI Segment | ||||||||
● | Hondros College, Nursing Programs Segment, or HCON Segment | ||||||||
In accordance with FASB ASC Topic 280, Segment Reporting, the chief operating decision-maker has been identified as the Chief Executive Officer. The Chief Executive Officer reviews operating results to make decisions about allocating resources and assessing performance for the APEI and HCON segments. | |||||||||
APEI acquired HCON on November 1, 2013, therefore the consolidated results for periods prior to November 1, 2013 do not include any results from the HCON segment. A summary of financial information by reportable segment is as follows (unaudited): | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Revenue | |||||||||
American Public Education Segment | $ | 81,349 | $ | 83,840 | |||||
Hondros College, Nursing Programs Segment | 7,204 | — | |||||||
Total Revenue | $ | 88,553 | $ | 83,840 | |||||
Income from continuing operations before interest income and income taxes | |||||||||
American Public Education Segment | $ | 16,027 | $ | 18,210 | |||||
Hondros College, Nursing Programs Segment | 698 | — | |||||||
Total income from continuing operations before interest income and income taxes | $ | 16,725 | $ | 18,210 | |||||
Depreciation and Amortization | |||||||||
American Public Education Segment | $ | 3,565 | $ | 3,207 | |||||
Hondros College, Nursing Programs Segment | 324 | — | |||||||
Total Depreciation and Amortization | $ | 3,889 | $ | 3,207 | |||||
Capital Expenditures | |||||||||
American Public Education Segment | $ | 4,588 | $ | 5,947 | |||||
Hondros College, Nursing Programs Segment | 24 | — | |||||||
Total Capital Expenditures | $ | 4,612 | $ | 5,947 | |||||
A summary of the Company’s consolidated assets by reportable segment is as follows (unaudited): | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Assets | |||||||||
American Public Education Segment | $ | 230,807 | $ | 246,740 | |||||
Hondros College, Nursing Programs Segment | 51,450 | — | |||||||
Total Assets | $ | 282,257 | $ | 246,740 |
Other_Employee_Benefits
Other Employee Benefits | 3 Months Ended |
Mar. 31, 2014 | |
Other Employee Benefits | ' |
Note 7. Other Employee Benefits | |
In November 2007, the Company adopted the American Public Education Employee Stock Purchase Plan, or the ESPP, which was implemented effective July 1, 2008 and scheduled to terminate on October 15, 2017. There were initially 100,000 shares of common stock available for purchase by participating employees under the ESPP. As of March 31, 2014, there were 2,866 shares that remained available for purchase under the ESPP and the ESPP will terminate on October 15, 2017. On March 7, 2014, the Company's Board of Directors approved an amendment to the ESPP to increase the number of shares of the Company’s common stock available for issuance under the plan by 100,000 shares, extend the term of the ESPP to March 7, 2024 and make other administrative changes. The amendment to the ESPP will not be effective unless and until it is approved by the Company’s stockholders at the Company's 2014 Annual Meeting, which is currently scheduled for June 13, 2014. In the definitive proxy statement for the Company’s 2014 Annual Meeting of Stockholders filed on April 28, 2014, the Board of Directors of the Company is soliciting stockholder approval of the amendment. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events | ' |
Note 8. Subsequent Events | |
On April 2, 2014, the Company made a $1.5 million investment in preferred stock of a game-based learning company representing approximately 25.9% of its fully diluted equity. This game-based learning comany is an education software company that develops software on a proprietary and “work-for-hire” basis. In connection with the investment, APEI is entitled to certain rights, including right to representation on the Board of Directors. The Company recorded the investment at cost and will recognize its share of earnings or losses in the investee in the periods for which they are reported with a corresponding adjustment in the carrying amount of the investment. |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Stock Option Activity | ' | ||||||||||||||||
Options granted through March 31, 2014 vest ratably over periods of three to five years and expire in seven to ten years from the date of grant. Option activity is summarized as follows (unaudited): | |||||||||||||||||
Number | Weighted | Weighted- | Aggregate | ||||||||||||||
of Options | Average | Average | Intrinsic | ||||||||||||||
Exercise Price | Contractual | Value | |||||||||||||||
Life (Yrs) | (In thousands) | ||||||||||||||||
Outstanding, December 31, 2013 | 501,202 | $ | 28.82 | ||||||||||||||
Options granted | — | $ | — | ||||||||||||||
Awards exercised | (10,449 | ) | $ | 4.29 | |||||||||||||
Awards forfeited | — | $ | — | ||||||||||||||
Outstanding, March 31, 2014 | 490,753 | $ | 29.34 | 2.82 | $ | 3,334 | |||||||||||
Exercisable, March 31, 2014 | 490,753 | $ | 29.34 | 2.82 | $ | 3,334 | |||||||||||
Stock Option Exercise | ' | ||||||||||||||||
The following table summarizes information regarding stock option exercises (unaudited): | |||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Proceeds from stock options exercised | $ | 45 | $ | 770 | |||||||||||||
Intrinsic value of stock options exercised | $ | 405 | $ | 495 | |||||||||||||
Tax benefit from exercises | $ | 1 | $ | 196 | |||||||||||||
Restricted Stock Activity | ' | ||||||||||||||||
The table below summarizes the restricted stock activity for the three months ended March 31, 2014 (unaudited): | |||||||||||||||||
Number | Weighted-Average | ||||||||||||||||
of Shares | Grant Price | ||||||||||||||||
and Fair Value | |||||||||||||||||
Non-vested, December 31, 2013 | 190,761 | $ | 38.61 | ||||||||||||||
Shares granted | 148,520 | $ | 44.45 | ||||||||||||||
Vested shares | (79,864 | ) | $ | 38.81 | |||||||||||||
Shares forfeited | (904 | ) | $ | 41.87 | |||||||||||||
Non-vested, March 31, 2014 | 258,513 | $ | 41.89 | ||||||||||||||
Stock-Based Compensation Cost Charged Against Income | ' | ||||||||||||||||
Stock-based compensation cost charged against income during the three-month periods ended March 31, 2014 and March 31, 2013 is as follows (unaudited): | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Instructional costs and services | $ | 290 | $ | 205 | |||||||||||||
Marketing and promotional | 126 | 107 | |||||||||||||||
General and administrative | 740 | 703 | |||||||||||||||
Stock-based compensation expense in operating income | 1,156 | 1,015 | |||||||||||||||
Tax benefit | (458 | ) | (402 | ) | |||||||||||||
Stock-based compensation expense, net of tax | $ | 698 | $ | 613 |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Summary of Financial Information by Reportable Segment | ' | ||||||||
A summary of financial information by reportable segment is as follows (unaudited): | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Revenue | |||||||||
American Public Education Segment | $ | 81,349 | $ | 83,840 | |||||
Hondros College, Nursing Programs Segment | 7,204 | — | |||||||
Total Revenue | $ | 88,553 | $ | 83,840 | |||||
Income from continuing operations before interest income and income taxes | |||||||||
American Public Education Segment | $ | 16,027 | $ | 18,210 | |||||
Hondros College, Nursing Programs Segment | 698 | — | |||||||
Total income from continuing operations before interest income and income taxes | $ | 16,725 | $ | 18,210 | |||||
Depreciation and Amortization | |||||||||
American Public Education Segment | $ | 3,565 | $ | 3,207 | |||||
Hondros College, Nursing Programs Segment | 324 | — | |||||||
Total Depreciation and Amortization | $ | 3,889 | $ | 3,207 | |||||
Capital Expenditures | |||||||||
American Public Education Segment | $ | 4,588 | $ | 5,947 | |||||
Hondros College, Nursing Programs Segment | 24 | — | |||||||
Total Capital Expenditures | $ | 4,612 | $ | 5,947 | |||||
Summary of Company's Consolidated Assets by Reportable Segment | ' | ||||||||
A summary of the Company’s consolidated assets by reportable segment is as follows (unaudited): | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Assets | |||||||||
American Public Education Segment | $ | 230,807 | $ | 246,740 | |||||
Hondros College, Nursing Programs Segment | 51,450 | — | |||||||
Total Assets | $ | 282,257 | $ | 246,740 |
Nature_of_The_Business_Additio
Nature of The Business - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Segment | |
Subsidiary | |
Person | |
Basis of Presentation [Line Items] | ' |
Number of students | 115,000 |
Number of subsidiaries | 2 |
Number of reportable segments | 2 |
Hondros College, Nursing Programs Segment | ' |
Basis of Presentation [Line Items] | ' |
Number of Campuses | 4 |
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | |||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Feb. 20, 2013 |
Sales Revenue, Services, Net | Sales Revenue, Services, Net | Sales Revenue, Services, Net | Sales Revenue, Services, Net | Sales Revenue, Services, Net | Sales Revenue, Services, Net | Fields Education | |||
Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | ||||
Students Who Receive Tuition Assistance Sponsored by United States Department of Defense | Students Who Receive Tuition Assistance Sponsored by United States Department of Defense | Students Eligible for Veterans Benefits | Students Eligible for Veterans Benefits | Students Who Received Federal Student Aid | Students Who Received Federal Student Aid | ||||
Basis of Presentation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minority investment | $120 | $4,000 | ' | ' | ' | ' | ' | ' | $4,000 |
Minority investment, ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | 21.60% |
Concentration risk, percentage | ' | ' | 36.00% | 39.00% | 17.00% | 15.00% | 35.00% | 35.00% | ' |
Net_Income_Per_Common_Share_Ad
Net Income Per Common Share - Additional Information (Detail) (Equity Option) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Equity Option | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-dilutive securities excluded from computation of diluted earnings per share | 0 | 252,431 |
Stock_Based_Compensation_Addit
Stock Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | 6-May-11 |
Employee Stock Option | Minimum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Option vesting period | '3 years | ' | ' |
Option expiration period | '7 years | ' | ' |
Employee Stock Option | Maximum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Option vesting period | '5 years | ' | ' |
Option expiration period | '10 years | ' | ' |
Restricted Stock | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Unrecognized compensation cost | 9.8 | ' | ' |
Unrecognized compensation cost, weighted average period for recognition | '2 years 2 months 12 days | ' | ' |
2011 Incentive Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share based compensation award, shares authorized for grant | ' | ' | 2,000,000 |
Shares subject to outstanding awards | 258,513 | ' | ' |
Share based compensation award, shares issued | 0 | 0 | ' |
2002 Incentive Plan and 2007 Incentive Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Shares subject to outstanding awards | 490,753 | ' | ' |
Stock_Option_Activity_Detail
Stock Option Activity (Detail) (2002, 2007 and 2011 Incentive Plans, USD $) | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 |
2002, 2007 and 2011 Incentive Plans | ' |
Number of options | ' |
Outstanding, Beginning Balance | 501,202 |
Options granted | ' |
Awards exercised | -10,449 |
Options forfeited | ' |
Outstanding, Ending Balance | 490,753 |
Exercisable, Ending Balance | 490,753 |
Weighted average exercise price | ' |
Outstanding, Beginning Balance | $28.82 |
Options granted | ' |
Awards exercised | $4.29 |
Options forfeited | ' |
Outstanding, Ending Balance | $29.34 |
Exercisable, Ending Balance | $29.34 |
Weighted average contractual life (years) | ' |
Outstanding, Ending Balance | '2 years 9 months 26 days |
Exercisable, Ending Balance | '2 years 9 months 26 days |
Aggregate intrinsic value | ' |
Outstanding, March 31, 2014 | $3,334 |
Exercisable, March 31, 2014 | $3,334 |
Stock_Option_Exercise_Detail
Stock Option Exercise (Detail) (2002, 2007 and 2011 Incentive Plans, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
2002, 2007 and 2011 Incentive Plans | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Proceeds from stock options exercised | $45 | $770 |
Intrinsic value of stock options exercised | 405 | 495 |
Tax benefit from exercises | $1 | $196 |
Restricted_Stock_Activity_Deta
Restricted Stock Activity (Detail) (2002, 2007 and 2011 Incentive Plans, USD $) | 3 Months Ended |
Mar. 31, 2014 | |
2002, 2007 and 2011 Incentive Plans | ' |
Number of shares | ' |
Non-vested, December 31, 2013 | 190,761 |
Shares granted | 148,520 |
Vested shares | -79,864 |
Shares forfeited | -904 |
Non-vested, March 31, 2014 | 258,513 |
Weighted-average grant price and fair value | ' |
Non vested, beginning balance | $38.61 |
Shares granted | $44.45 |
Vested shares | $38.81 |
Shares forfeited | $41.87 |
Non vested, ending balance | $41.89 |
StockBased_Compensation_Cost_C
Stock-Based Compensation Cost Charged Against Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense in operating income | $1,156 | $1,015 |
Tax benefit | -458 | -402 |
Stock-based compensation expense, net of tax | 698 | 613 |
Instructional costs and services | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense in operating income | 290 | 205 |
Marketing and promotional | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense in operating income | 126 | 107 |
General and administrative | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense in operating income | $740 | $703 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Segment | |
Segment Reporting Information [Line Items] | ' |
Number of operating segments | 2 |
Summary_of_Financial_Informati
Summary of Financial Information by Reportable Segment (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Revenue | $88,553 | $83,840 |
Income from continuing operations before interest income and income taxes | 16,725 | 18,210 |
Depreciation and amortization | 3,889 | 3,207 |
Capital Expenditures | 4,612 | 5,947 |
American Public Education Segment | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenue | 81,349 | 83,840 |
Income from continuing operations before interest income and income taxes | 16,027 | 18,210 |
Depreciation and amortization | 3,565 | 3,207 |
Capital Expenditures | 4,588 | 5,947 |
Hondros College, Nursing Programs Segment | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenue | 7,204 | ' |
Income from continuing operations before interest income and income taxes | 698 | ' |
Depreciation and amortization | 324 | ' |
Capital Expenditures | $24 | ' |
Summary_of_Companys_Consolidat
Summary of Company's Consolidated Assets by Reportable Segment (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | |||
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets | $282,257 | $271,655 | $246,740 |
American Public Education Segment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets | 230,807 | ' | 246,740 |
Hondros College, Nursing Programs Segment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets | $51,450 | ' | ' |
Other_Employee_Benefits_Additi
Other Employee Benefits - Additional Information (Detail) (APEI ESPP) | 3 Months Ended | 0 Months Ended |
Mar. 31, 2014 | Mar. 07, 2014 | |
Subsequent Event | ||
Defined Contribution Plan Disclosure [Line Items] | ' | ' |
ESPP, common stock that may be available for purchase | 100,000 | ' |
ESPP, common stock remained available | 2,866 | ' |
ESPP, additional shares approved for issuance | ' | 100,000 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Apr. 02, 2014 |
Subsequent Event | |||
Game Based Learning Company | |||
Subsequent Event [Line Items] | ' | ' | ' |
Investment in preferred stock | $120 | $4,000 | $1,500 |
Investment in preferred stock, ownership percentage | ' | ' | 25.90% |