Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 05, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | AMERICAN PUBLIC EDUCATION INC | |
Entity Central Index Key | 1,201,792 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 16,056,319 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 119,985 | $ 105,734 |
Accounts receivable, net of allowance of $9,556 in 2016 and $13,012 in 2015 | 8,560 | 7,917 |
Prepaid expenses | 6,830 | 10,746 |
Income tax receivable | 981 | 0 |
Deferred income taxes | 4,806 | 6,714 |
Total current assets | 141,162 | 131,111 |
Property and equipment, net | 108,005 | 109,281 |
Investments | 17,465 | 15,915 |
Goodwill | 38,634 | 38,634 |
Other assets, net | 9,132 | 8,955 |
Total assets | 314,398 | 303,896 |
Current liabilities: | ||
Accounts payable | 7,171 | 6,264 |
Accrued liabilities | 17,937 | 14,808 |
Deferred revenue | 25,898 | 29,727 |
Total current liabilities | 51,006 | 50,799 |
Deferred income taxes | 16,011 | 15,944 |
Total liabilities | $ 67,017 | $ 66,743 |
Commitments and contingencies | ||
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; 16,055 issued and outstanding in 2016; 15,989 issued and outstanding in 2015 | 161 | 160 |
Additional paid-in capital | 173,587 | 173,700 |
Retained earnings | 73,633 | 63,293 |
Total stockholders’ equity | 247,381 | 237,153 |
Total liabilities and stockholders’ equity | $ 314,398 | $ 303,896 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 9,556 | $ 13,012 |
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) | 16,055,000 | 15,989,000 |
Common stock, outstanding (in shares) | 16,055,000 | 15,989,000 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Revenue | $ 83,966 | $ 85,444 |
Costs and expenses: | ||
Instructional costs and services | 29,708 | 30,260 |
Selling and promotional | 16,469 | 17,019 |
General and administrative | 16,930 | 19,105 |
Depreciation and amortization | 4,889 | 4,589 |
Total costs and expenses | 67,996 | 70,973 |
Income from operations before interest income and income taxes | 15,970 | 14,471 |
Interest income | 37 | 10 |
Income before income taxes | 16,007 | 14,481 |
Income tax expense | 6,267 | 5,650 |
Equity investment income/(loss) | 600 | (38) |
Net income | $ 10,340 | $ 8,793 |
Net Income per common share: | ||
Basic (in dollars per share) | $ 0.64 | $ 0.51 |
Diluted (in dollars per share) | $ 0.64 | $ 0.51 |
Weighted average number of common shares: | ||
Basic (in shares) | 16,038,243 | 17,183,952 |
Diluted (in shares) | 16,171,424 | 17,353,529 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating activities | ||
Net income | $ 10,340 | $ 8,793 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 4,889 | 4,589 |
Stock-based compensation | 1,502 | 1,394 |
Investment (income)/loss | (600) | 38 |
Deferred income taxes | 1,975 | 632 |
Other | 279 | 25 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net of allowance for bad debt | (643) | (3,111) |
Prepaid expenses and other assets | 4,031 | (800) |
Income tax receivable | (981) | 82 |
Accounts payable | 907 | (4,778) |
Accrued liabilities | 2,182 | 346 |
Deferred revenue | (3,829) | (64) |
Net cash provided by operating activities | 20,052 | 7,146 |
Investing activities | ||
Capital expenditures | (3,139) | (5,288) |
Equity investment | (950) | 0 |
Capitalized program development costs and other assets | (82) | (138) |
Net cash used in investing activities | (4,171) | (5,426) |
Financing activities | ||
Cash paid for repurchase of common stock | (630) | (4,668) |
Excess (tax)/tax benefit from stock-based compensation | (1,000) | (349) |
Net cash used in financing activities | (1,630) | (5,017) |
Net increase/(decrease) in cash and cash equivalents | 14,251 | (3,297) |
Cash and cash equivalents at beginning of period | 105,734 | 115,634 |
Cash and cash equivalents at end of period | 119,985 | 112,337 |
Supplemental disclosure of cash flow information | ||
Income taxes paid | $ 6,956 | $ 5,285 |
Nature of the Business
Nature of the Business | 3 Months Ended |
Mar. 31, 2016 | |
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 99,700 students through the operations of two subsidiary institutions: • American Public University System, Inc., or APUS, provides 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. • National Education Seminars, Inc., which is referred to in these financial statements as Hondros College of Nursing, or HCON, provides nursing education to students at four campuses in the State of Ohio as well as online to serve the needs of the nursing and healthcare communities. HCON is nationally accredited by the Accrediting Council of Independent Colleges and Schools and the RN-to-BSN Program is accredited by the Commission on Collegiate Nursing Education. 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 HCON Segment. This segment reflects the operational activities of HCON. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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 interim Consolidated Financial Statements do not include all of the information and notes 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, 2016 . 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 its Annual Report on Form 10-K for the year ended December 31, 2015 . 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 these interim Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board, or FASB, issued ASU 2016-02, “ Leases (Topic 842) ” (“ASU 2016-02”) . ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. ASU 2016-02 must be adopted using a modified retrospective approach. Application will be required as of the beginning of the earliest comparative period presented. ASU 2016-02 requires lessees to record, at lease inception, a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. Under ASU 2016-02, lessees may elect not to recognize lease liabilities and right-of-use assets for most leases with terms of 12 months or less. ASU 2016-02 requires lease liabilities to be measured at the present value of the lease payments over the lease term. ASU 2016-02 provides that right-of-use assets are measured based on the liability, adjusted for lease prepayments, lease incentives received, and the lessee's initial direct costs. Pursuant to ASU 2016-02, expenses related to finance leases will be the sum of interest on the lease obligation and amortization of the right-of use asset and expenses related to operating leases will generally be recognized on a straight-line basis. In March 2016, the FASB issued ASU No. 2016-09, “ Compensation—Stock Compensation (Topic 718) ” (“ASU 2016-09”). ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, with early adoption permitted. ASU 2016-09 makes several modifications to Topic 718 related to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. ASU 2016-09 also clarifies the statement of cash flows presentation for certain components of share-based awards. The Company is currently evaluating, but has not yet determined, the impact that implementation of these standards may have on its Consolidated Financial Statements and disclosures. There have been no other applicable material pronouncements issued since the filing of the Company's Annual Report. Investments In February 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 offers a learning relationship management platform that has the goal of improving education advising and career mentoring services offered to students as they pursue college degrees. On February 1, 2016, the Company made an additional $950,000 investment in preferred stock of Fidelis Education increasing its investment in Fidelis Education to approximately 22% of its fully diluted equity. In connection with the investment, the Company is entitled to certain rights, including the right to representation on the Board of Directors of Fidelis Education. The Company accounts for its investments in Fidelis Education under the equity method of accounting. Therefore, the Company recorded the investments at cost and recognizes its share of earnings or losses in Fidelis Education in the periods for which they are reported with a corresponding adjustment in the carrying amount of the investment. Restricted Cash Cash and cash equivalents includes funds held for students for unbilled educational services that were received from Title IV programs. As a trustee of these Title IV program funds, the Company is required to maintain and restrict these funds pursuant to the terms of each subsidiary institution's program participation agreement with ED. Restricted cash on the Company's Consolidated Balance Sheets as of March 31, 2016 (unaudited) and December 31, 2015 was $ 3.6 million and $ 3.3 million , respectively. Changes in restricted cash that represent funds held for students as described above are included in cash flows from operating activities on the Company's Consolidated Statements of Cash Flows because these restricted funds are related to a core activity of its operations. 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 currently subject to any pending material legal proceedings. Concentration APUS students utilize various payment sources and programs to finance educational expenses. These programs include funds from Department of Defense, or DoD, tuition assistance programs, education benefit programs administered by the U.S. Department of Veterans Affairs, or VA education benefits, and federal student aid from Title IV programs, as well as cash and other sources. Reductions in or changes to DoD tuition assistance, VA education benefits, Title IV programs and other payment sources could have a significant impact on the Company’s business, operations, financial condition and cash flows. A summary of APEI Segment revenue derived from APUS students by primary funding source for the three months ended March 31, 2016 and March 31, 2015 is included in the table below (unaudited). Three Months Ended March 31, 2016 2015 Title IV programs 29% 33% DoD tuition assistance programs 36% 35% VA education benefits 22% 20% Cash and other sources 13% 12% HCON students also utilize various payment sources and programs to finance educational expenses, including Title IV programs and VA education benefits. For the three months ended March 31, 2016 , approximately 85% of the HCON Segment’s revenue was derived from Title IV programs. |
Net Income Per Common Share
Net Income Per Common Share | 3 Months Ended |
Mar. 31, 2016 | |
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 options and restricted stock awards. Stock options are not included in the computation of diluted earnings per share when their effect is anti-dilutive. There were 250,834 anti-dilutive stock options excluded from the calculation for the three months ended March 31, 2016 , compared to 342,066 anti-dilutive stock options excluded from the calculation for the three months ended March 31, 2015 . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 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 2013 to 2015 remain open to examination. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation On March 15, 2011, the Company’s 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 the Company to grant up to 2,000,000 shares plus any shares of common stock that are subject to outstanding awards under the 2007 Incentive Plan or the American Public Education, Inc. 2002 Stock Plan, or the 2002 Stock Plan, that terminate due to expiration, forfeiture, cancellation or otherwise without the issuance of such shares. Prior to 2012, the Company issued a mix of stock options and restricted stock, but since 2011 the Company has not issued any stock options. Restricted Stock and Restricted Stock Unit Awards Stock-based compensation expense related to restricted stock and restricted stock unit 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 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 table below summarizes the restricted stock and restricted stock unit awards activity for the three months ended March 31, 2016 (unaudited): Number of Shares Weighted-Average Grant Price and Fair Value Non-vested, December 31, 2015 293,419 $ 35.86 Shares granted 315,231 $ 15.64 Vested shares (104,082 ) $ 37.59 Shares forfeited — $ — Non-vested, March 31, 2016 504,568 $ 22.87 Option Awards 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 Securities and Exchange Commission Staff Accounting Bulletins No. 107 and 110 because the Company lacked historical data and was unable to make reasonable assumptions regarding the future. 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. Options previously granted 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 of Options Weighted Average Exercise Price Weighted-Average Contractual Life (Years) Aggregate Intrinsic Value (In thousands) Outstanding, December 31, 2015 329,872 $ 33.65 Options granted — $ — Awards exercised — $ — Awards forfeited (48,157 ) $ 37.19 Outstanding, March 31, 2016 281,715 $ 33.04 1.27 $ 421 Exercisable, March 31, 2016 281,715 $ 33.04 1.27 $ 421 Stock Based Compensation Expense Stock-based compensation expense charged against income during the three month periods ended March 31, 2016 and 2015 is as follows (unaudited): Three Months Ended March 31, 2016 2015 (In thousands) Instructional costs and services $ 430 $ 384 Selling and promotional 184 165 General and administrative 888 845 Stock-based compensation expense in operating income 1,502 1,394 Tax benefit (595 ) (574 ) Stock-based compensation expense, net of tax $ 907 $ 820 As of March 31, 2016 , there was $9.4 million of total unrecognized compensation cost, representing unrecognized compensation cost associated with non-vested restricted stock and restricted stock units. 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, 2016 | |
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 HCON Segment. In accordance with FASB ASC Topic 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 Segment and HCON Segment. A summary of financial information by reportable segment is as follows (unaudited): Three Months Ended March 31, 2016 2015 (In thousands) Revenue: American Public Education Segment $ 76,265 $ 77,452 Hondros College of Nursing Segment 7,701 7,992 Total Revenue $ 83,966 $ 85,444 Depreciation and Amortization: American Public Education Segment $ 4,579 $ 4,315 Hondros College of Nursing Segment 310 274 Total Depreciation and Amortization $ 4,889 $ 4,589 Income from continuing operations before interest income and income taxes: American Public Education Segment $ 15,237 $ 13,316 Hondros College of Nursing Segment 733 1,155 Total income from continuing operations before interest income and income taxes $ 15,970 $ 14,471 Interest Income, Net American Public Education Segment $ 37 $ 10 Hondros College of Nursing Segment — — Total Interest Income, Net $ 37 $ 10 Income Tax Expense American Public Education Segment $ 5,975 $ 5,193 Hondros College of Nursing Segment 292 457 Total Income Tax Expense $ 6,267 $ 5,650 Capital Expenditures: American Public Education Segment $ 2,854 $ 5,247 Hondros College of Nursing Segment 285 41 Total Capital Expenditures $ 3,139 $ 5,288 A summary of the Company’s consolidated assets by reportable segment is as follows (current period unaudited): As of March 31, 2016 As of December 31, 2015 (Unaudited) (In thousands) Assets: American Public Education Segment $ 259,730 $ 250,118 Hondros College of Nursing Segment 54,668 53,778 Total Assets $ 314,398 $ 303,896 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates | 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 these interim Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board, or FASB, issued ASU 2016-02, “ Leases (Topic 842) ” (“ASU 2016-02”) . ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. ASU 2016-02 must be adopted using a modified retrospective approach. Application will be required as of the beginning of the earliest comparative period presented. ASU 2016-02 requires lessees to record, at lease inception, a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. Under ASU 2016-02, lessees may elect not to recognize lease liabilities and right-of-use assets for most leases with terms of 12 months or less. ASU 2016-02 requires lease liabilities to be measured at the present value of the lease payments over the lease term. ASU 2016-02 provides that right-of-use assets are measured based on the liability, adjusted for lease prepayments, lease incentives received, and the lessee's initial direct costs. Pursuant to ASU 2016-02, expenses related to finance leases will be the sum of interest on the lease obligation and amortization of the right-of use asset and expenses related to operating leases will generally be recognized on a straight-line basis. In March 2016, the FASB issued ASU No. 2016-09, “ Compensation—Stock Compensation (Topic 718) ” (“ASU 2016-09”). ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, with early adoption permitted. ASU 2016-09 makes several modifications to Topic 718 related to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. ASU 2016-09 also clarifies the statement of cash flows presentation for certain components of share-based awards. The Company is currently evaluating, but has not yet determined, the impact that implementation of these standards may have on its Consolidated Financial Statements and disclosures. There have been no other applicable material pronouncements issued since the filing of the Company's Annual Report. |
Investments | The Company accounts for its investments in Fidelis Education under the equity method of accounting. Therefore, the Company recorded the investments at cost and recognizes its share of earnings or losses in Fidelis Education in the periods for which they are reported with a corresponding adjustment in the carrying amount of the investment. |
Restricted Cash | Restricted Cash Cash and cash equivalents includes funds held for students for unbilled educational services that were received from Title IV programs. As a trustee of these Title IV program funds, the Company is required to maintain and restrict these funds pursuant to the terms of each subsidiary institution's program participation agreement with ED. |
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 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 currently subject to any pending material legal proceedings. |
Concentration | Concentration APUS students utilize various payment sources and programs to finance educational expenses. These programs include funds from Department of Defense, or DoD, tuition assistance programs, education benefit programs administered by the U.S. Department of Veterans Affairs, or VA education benefits, and federal student aid from Title IV programs, as well as cash and other sources. Reductions in or changes to DoD tuition assistance, VA education benefits, Title IV programs and other payment sources could have a significant impact on the Company’s business, operations, financial condition and cash flows. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of APEI segment revenue | A summary of APEI Segment revenue derived from APUS students by primary funding source for the three months ended March 31, 2016 and March 31, 2015 is included in the table below (unaudited). Three Months Ended March 31, 2016 2015 Title IV programs 29% 33% DoD tuition assistance programs 36% 35% VA education benefits 22% 20% Cash and other sources 13% 12% |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of restricted stock and restricted stock unit awards | The table below summarizes the restricted stock and restricted stock unit awards activity for the three months ended March 31, 2016 (unaudited): Number of Shares Weighted-Average Grant Price and Fair Value Non-vested, December 31, 2015 293,419 $ 35.86 Shares granted 315,231 $ 15.64 Vested shares (104,082 ) $ 37.59 Shares forfeited — $ — Non-vested, March 31, 2016 504,568 $ 22.87 |
Summary of option activity | Option activity is summarized as follows (unaudited): Number of Options Weighted Average Exercise Price Weighted-Average Contractual Life (Years) Aggregate Intrinsic Value (In thousands) Outstanding, December 31, 2015 329,872 $ 33.65 Options granted — $ — Awards exercised — $ — Awards forfeited (48,157 ) $ 37.19 Outstanding, March 31, 2016 281,715 $ 33.04 1.27 $ 421 Exercisable, March 31, 2016 281,715 $ 33.04 1.27 $ 421 |
Summary of stock-based compensation cost charged against income | Stock-based compensation expense charged against income during the three month periods ended March 31, 2016 and 2015 is as follows (unaudited): Three Months Ended March 31, 2016 2015 (In thousands) Instructional costs and services $ 430 $ 384 Selling and promotional 184 165 General and administrative 888 845 Stock-based compensation expense in operating income 1,502 1,394 Tax benefit (595 ) (574 ) Stock-based compensation expense, net of tax $ 907 $ 820 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Summary of financial information by reportable segment | A summary of financial information by reportable segment is as follows (unaudited): Three Months Ended March 31, 2016 2015 (In thousands) Revenue: American Public Education Segment $ 76,265 $ 77,452 Hondros College of Nursing Segment 7,701 7,992 Total Revenue $ 83,966 $ 85,444 Depreciation and Amortization: American Public Education Segment $ 4,579 $ 4,315 Hondros College of Nursing Segment 310 274 Total Depreciation and Amortization $ 4,889 $ 4,589 Income from continuing operations before interest income and income taxes: American Public Education Segment $ 15,237 $ 13,316 Hondros College of Nursing Segment 733 1,155 Total income from continuing operations before interest income and income taxes $ 15,970 $ 14,471 Interest Income, Net American Public Education Segment $ 37 $ 10 Hondros College of Nursing Segment — — Total Interest Income, Net $ 37 $ 10 Income Tax Expense American Public Education Segment $ 5,975 $ 5,193 Hondros College of Nursing Segment 292 457 Total Income Tax Expense $ 6,267 $ 5,650 Capital Expenditures: American Public Education Segment $ 2,854 $ 5,247 Hondros College of Nursing Segment 285 41 Total Capital Expenditures $ 3,139 $ 5,288 |
Summary of consolidated assets by reportable segment | A summary of the Company’s consolidated assets by reportable segment is as follows (current period unaudited): As of March 31, 2016 As of December 31, 2015 (Unaudited) (In thousands) Assets: American Public Education Segment $ 259,730 $ 250,118 Hondros College of Nursing Segment 54,668 53,778 Total Assets $ 314,398 $ 303,896 |
Nature of the Business (Details
Nature of the Business (Details) | 3 Months Ended |
Mar. 31, 2016subsidiarystudentcampussegment | |
Segment Reporting Information [Line Items] | |
Number of students | student | 99,700 |
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 | 4 |
Basis of Presentation - Investm
Basis of Presentation - Investments (Details) - USD ($) $ in Thousands | Feb. 01, 2016 | Feb. 28, 2013 | Mar. 31, 2016 | Mar. 31, 2015 |
Investment [Line Items] | ||||
Investment in preferred stock | $ 950 | $ 0 | ||
Fidelis Education Inc | ||||
Investment [Line Items] | ||||
Investment in preferred stock | $ 950 | $ 4,000 | ||
Percentage of fully diluted equity | 22.00% | 21.60% |
Basis of Presentation - Restric
Basis of Presentation - Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Restricted cash | $ 3.6 | $ 3.3 |
Basis of Presentation - Concent
Basis of Presentation - Concentration (Details) - Customer Concentration Risk - Sales Revenue, Services, Net | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
American Public Education Segment | Title IV programs | ||
Concentration Risk [Line Items] | ||
Percentage of segment revenue | 29.00% | 33.00% |
American Public Education Segment | DoD tuition assistance programs | ||
Concentration Risk [Line Items] | ||
Percentage of segment revenue | 36.00% | 35.00% |
American Public Education Segment | VA education benefits | ||
Concentration Risk [Line Items] | ||
Percentage of segment revenue | 22.00% | 20.00% |
American Public Education Segment | Cash and other sources | ||
Concentration Risk [Line Items] | ||
Percentage of segment revenue | 13.00% | 12.00% |
Hondros College of Nursing Segment | Title IV programs | ||
Concentration Risk [Line Items] | ||
Percentage of segment revenue | 85.00% |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive stock options (in shares) | 250,834 | 342,066 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended |
Mar. 31, 2016 | |
Earliest Tax Year | |
Income Tax Examination [Line Items] | |
Tax years open to examination | 2,013 |
Latest Tax Year | |
Income Tax Examination [Line Items] | |
Tax years open to examination | 2,015 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 15, 2011 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 9.4 | |
Unrecognized compensation cost, weighted average period | 2 years 2 months | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options previously granted vesting period | 3 years | |
Options previously granted expiration period | 7 years | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options previously granted vesting period | 5 years | |
Options previously granted expiration period | 10 years | |
2011 Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for grant (in shares) | 2,000,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Restricted Stock Awards Activity (Details) - Restricted Stock | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Number of Shares | |
Non vested, beginning balance (in shares) | shares | 293,419 |
Shares granted (in shares) | shares | 315,231 |
Vested shares (in shares) | shares | (104,082) |
Shares forfeited (in shares) | shares | 0 |
Non vested, ending balance (in shares) | shares | 504,568 |
Weighted-Average Grant Price and Fair Value | |
Non vested, beginning balance (in dollars per share) | $ / shares | $ 35.86 |
Shares granted (in dollars per share) | $ / shares | 15.64 |
Vested shares (in dollars per share) | $ / shares | 37.59 |
Shares forfeited (in dollars per share) | $ / shares | 0 |
Non vested, ending balance (in dollars per share) | $ / shares | $ 22.87 |
Stock-Based Compensation - Su24
Stock-Based Compensation - Summary of Option Activity (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($)$ / sharesshares | |
Number of Options | |
Outstanding, beginning balance (in shares) | shares | 329,872 |
Options granted (in shares) | shares | 0 |
Awards exercised (in shares) | shares | 0 |
Awards forfeited (in shares) | shares | (48,157) |
Outstanding, ending balance (in shares) | shares | 281,715 |
Exercisable, ending balance (in shares) | shares | 281,715 |
Weighted Average Exercise Price | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 33.65 |
Options granted (in dollars per share) | $ / shares | 0 |
Awards exercised (in dollars per share) | $ / shares | 0 |
Awards forfeited (in dollars per share) | $ / shares | 37.19 |
Outstanding, ending balance (in dollars per share) | $ / shares | 33.04 |
Exercisable, ending balance (in dollars per share) | $ / shares | $ 33.04 |
Weighted-Average Contractual Life (Years) and Aggregate Intrinsic Value (In thousands) | |
Weighted-average contractual life outstanding, ending balance | 1 year 3 months 8 days |
Weighted-average contractual life exercisable, ending balance | 1 year 3 months 8 days |
Aggregate intrinsic value outstanding, ending balance | $ | $ 421 |
Aggregate intrinsic value exercisable, ending balance | $ | $ 421 |
Stock-Based Compensation - Su25
Stock-Based Compensation - Summary of Stock-based Compensation Cost Charged Against Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense in operating income | $ 1,502 | $ 1,394 |
Tax benefit | (595) | (574) |
Stock-based compensation expense, net of tax | 907 | 820 |
Instructional costs and services | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense in operating income | 430 | 384 |
Selling and promotional | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense in operating income | 184 | 165 |
General and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense in operating income | $ 888 | $ 845 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2016segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Information - Summary o
Segment Information - Summary of Financial Information by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue: | ||
Total Revenue | $ 83,966 | $ 85,444 |
Depreciation and Amortization: | ||
Total Depreciation and Amortization | 4,889 | 4,589 |
Income from continuing operations before interest income and income taxes: | ||
Total income from continuing operations before interest income and income taxes | 15,970 | 14,471 |
Interest Income, Net | ||
Interest income | 37 | 10 |
Income Tax Expense | ||
Total Income Tax Expense | 6,267 | 5,650 |
Capital Expenditures: | ||
Total Capital Expenditures | 3,139 | 5,288 |
American Public Education Segment | ||
Revenue: | ||
Total Revenue | 76,265 | 77,452 |
Depreciation and Amortization: | ||
Total Depreciation and Amortization | 4,579 | 4,315 |
Income from continuing operations before interest income and income taxes: | ||
Total income from continuing operations before interest income and income taxes | 15,237 | 13,316 |
Interest Income, Net | ||
Interest income | 37 | 10 |
Income Tax Expense | ||
Total Income Tax Expense | 5,975 | 5,193 |
Capital Expenditures: | ||
Total Capital Expenditures | 2,854 | 5,247 |
Hondros College of Nursing Segment | ||
Revenue: | ||
Total Revenue | 7,701 | 7,992 |
Depreciation and Amortization: | ||
Total Depreciation and Amortization | 310 | 274 |
Income from continuing operations before interest income and income taxes: | ||
Total income from continuing operations before interest income and income taxes | 733 | 1,155 |
Interest Income, Net | ||
Interest income | 0 | 0 |
Income Tax Expense | ||
Total Income Tax Expense | 292 | 457 |
Capital Expenditures: | ||
Total Capital Expenditures | $ 285 | $ 41 |
Segment Information - Summary28
Segment Information - Summary of Consolidated Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Total Assets | $ 314,398 | $ 303,896 |
American Public Education Segment | ||
Assets: | ||
Total Assets | 259,730 | 250,118 |
Hondros College of Nursing Segment | ||
Assets: | ||
Total Assets | $ 54,668 | $ 53,778 |