Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 05, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 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, $.01 par value | |
Trading Symbol | APEI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 18,709,171 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001201792 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash, cash equivalents, and restricted cash (Note 2) | $ 141,487 | $ 227,686 |
Accounts receivable, net of allowance of $11,010 in 2021 and $5,983 in 2020 | 29,447 | 17,652 |
Prepaid expenses | 13,152 | 6,472 |
Income tax receivable | 5,822 | 0 |
Total current assets | 189,908 | 251,810 |
Property and equipment, net | 102,565 | 68,434 |
Operating lease assets, net | 83,886 | 8,743 |
Investments | 9,668 | 10,495 |
Intangible assets, net | 88,936 | 3,721 |
Goodwill | 243,766 | 26,563 |
Other assets, net | 4,458 | 1,252 |
Total assets | 723,187 | 371,018 |
Current liabilities: | ||
Accounts payable | 9,066 | 3,757 |
Accrued compensation and benefits | 17,724 | 15,660 |
Accrued liabilities | 14,723 | 10,967 |
Deferred revenue and student deposits | 25,990 | 22,104 |
Income tax payable | 0 | 178 |
Operating lease liabilities, current | 13,876 | 2,392 |
Long-term debt, current | 8,750 | 0 |
Total current liabilities | 90,129 | 55,058 |
Operating lease liabilities, long-term | 73,420 | 6,455 |
Deferred income taxes | 1,864 | 2,580 |
Long-term debt, net | 153,336 | 0 |
Total liabilities | 318,749 | 64,093 |
Commitments and contingencies (Note 10) | ||
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; 18,709 issued and outstanding in 2021; 14,809 issued and outstanding in 2020 | 187 | 148 |
Additional paid-in capital | 284,700 | 195,597 |
Retained earnings | 119,551 | 111,180 |
Total stockholders’ equity | 404,438 | 306,925 |
Total liabilities and stockholders’ equity | $ 723,187 | $ 371,018 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Accounts receivable, allowance | $ 11,010 | $ 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) | 18,709,000 | 14,809,000 |
Common stock, outstanding (in shares) | 18,709,000 | 14,809,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 98,248 | $ 79,133 | $ 264,803 | $ 235,876 |
Costs and expenses: | ||||
Instructional costs and services | 42,544 | 31,084 | 105,257 | 91,058 |
Selling and promotional | 23,458 | 18,523 | 60,350 | 53,765 |
General and administrative | 26,598 | 22,574 | 75,579 | 65,314 |
Loss on disposals of long-lived assets | 0 | 418 | 182 | 742 |
Depreciation and amortization | 4,386 | 3,226 | 9,561 | 9,955 |
Total costs and expenses | 96,986 | 75,825 | 250,929 | 220,834 |
Income from operations before interest and income taxes | 1,262 | 3,308 | 13,874 | 15,042 |
Interest (expense) income | (1,305) | 121 | (1,167) | 1,002 |
(Loss) income before income taxes | (43) | 3,429 | 12,707 | 16,044 |
Income tax expense | 224 | 785 | 3,509 | 4,291 |
Equity investment loss | 0 | (2) | (827) | (2) |
Net (loss) income | $ (267) | $ 2,642 | $ 8,371 | $ 11,751 |
Net (loss) income per common share: | ||||
Basic (in dollars per share) | $ (0.01) | $ 0.18 | $ 0.47 | $ 0.79 |
Diluted (in dollars per share) | $ (0.01) | $ 0.18 | $ 0.46 | $ 0.78 |
Weighted average number of common shares: | ||||
Basic (in shares) | 18,700 | 14,797 | 17,874 | 14,870 |
Diluted (in shares) | 18,855 | 15,011 | 18,048 | 15,021 |
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) | 258 | |||
Issuance of common stock under employee benefit plans | 0 | $ 2 | (2) | |
Deemed repurchased shares of common and restricted stock for tax withholding (in shares) | (79) | |||
Deemed repurchased shares of common and restricted stock for tax withholding | (2,097) | $ (1) | (2,096) | |
Stock-based compensation | 5,265 | 5,265 | ||
Repurchased and retired shares of common stock (in shares) | (548) | |||
Repurchased and retired shares of common stock | (13,608) | $ (5) | (13,603) | |
Net income | 11,751 | 11,751 | ||
Ending balance (in shares) at Sep. 30, 2020 | 14,809 | |||
Ending balance at Sep. 30, 2020 | 298,044 | $ 148 | 193,787 | 104,109 |
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) | 319 | |||
Issuance of common stock under employee benefit plans | 0 | $ 3 | (3) | |
Deemed repurchased shares of common and restricted stock for tax withholding (in shares) | (99) | |||
Deemed repurchased shares of common and restricted stock for tax withholding | (3,032) | $ (1) | (3,031) | |
Stock-based compensation | 5,969 | 5,969 | ||
Net income | 8,371 | 8,371 | ||
Ending balance (in shares) at Sep. 30, 2021 | 18,709 | |||
Ending balance at Sep. 30, 2021 | $ 404,438 | $ 187 | $ 284,700 | $ 119,551 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities | ||
Net income | $ 8,371 | $ 11,751 |
Adjustments to reconcile net income to net cash provided by operating activities, net of assets and liabilities acquired: | ||
Depreciation and amortization, including debt issuance | 9,561 | 9,955 |
Amortization of debt issuance costs | 223 | 0 |
Stock-based compensation | 5,969 | 5,265 |
Equity investment loss | 827 | 2 |
Deferred income taxes | 2,489 | 1,974 |
Loss on disposals of long-lived assets | 182 | 742 |
Other | 6 | 24 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net of allowance for bad debt | (1,058) | 1,765 |
Prepaid expenses | (2,076) | (807) |
Income tax receivable/payable | (6,000) | (743) |
Operating leases, net | 766 | (26) |
Other assets | (1,594) | (427) |
Accounts payable | 3,595 | 943 |
Accrued compensation and benefits | (813) | 3,031 |
Accrued liabilities | (1,022) | 3,219 |
Deferred revenue and student deposits | (18,847) | 8,065 |
Net cash provided by operating activities | 579 | 44,733 |
Investing activities | ||
Cash paid for acquisition, net of cash acquired | (325,509) | 0 |
Capital expenditures | (5,813) | (4,171) |
Proceeds from the sale of real property | 0 | 412 |
Net cash used in investing activities | (331,322) | (3,759) |
Financing activities | ||
Cash paid for repurchase of common stock | (3,032) | (15,705) |
Cash received from issuance of common stock | 86,205 | 0 |
Cash received from borrowings | 175,000 | 0 |
Cash paid for debt issuance costs | (13,629) | 0 |
Net cash provided by (used in) financing activities | 244,544 | (15,705) |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (86,199) | 25,269 |
Cash, cash equivalents, and restricted cash at beginning of period | 227,686 | 202,740 |
Cash, cash equivalents, and restricted cash at end of period | 141,487 | 228,009 |
Supplemental disclosure of cash flow information | ||
Interest paid | 0 | 0 |
Income taxes paid | $ 6,983 | $ 3,062 |
Nature of the Business
Nature of the Business | 9 Months Ended |
Sep. 30, 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 students through subsidiary institutions that include: • 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. • Rasmussen College, LLC, which is referred to herein as Rasmussen University, or RU, a nursing- and health sciences-focused institution, provides postsecondary education to students at its 23 campuses across six states and online. The Company completed the acquisition of Rasmussen University, or the Rasmussen Acquisition, on September 1, 2021, or the Closing Date. See “Note 3. Acquisition Activity” for more information on this acquisition. The Consolidated Financial Statements do not include the operating results or financial position of Rasmussen University for any periods prior to the Closing Date. RU is institutionally accredited by 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 one 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. 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. During the third quarter of 2021, the Company revised its reportable segments, as discussed further in “Note 9. Segment Information” Prior period segment disclosures have been restated to conform to the current period presentation. The Company’s operations are organized into three reportable segments: • American Public University System, or APUS Segment. This segment reflects the operational activities of APUS. • Rasmussen University Segment, or RU Segment . This segment reflects the operational activities of RU. • 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 | 9 Months Ended |
Sep. 30, 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. Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. Specifically, at September 30, 2021, Intangible assets, net are disclosed as a separate financial statement line item on the Consolidated Balance Sheet. Prior to September 30, 2021, Intangible assets, net, were presented in the Consolidated Balance Sheet in Other assets, net. 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 assumptions 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. Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash includes funds held for students for unbilled educational services that were received from Title IV programs and, as of September 30, 2021, amounts to secure letters of credit, including $24.2 million in a restricted certificate of deposit account to secure a letter of credit for the benefit of the ED on behalf of RU in connection with RU’s 2020 composite score, which is used by ED for determining compliance with financial responsibility standards, being below the minimum required, and a $0.6 million restricted certificate of deposit to secure a letter of credit in lieu of a security deposit for an RU leased campus. The Company is required to maintain funds from Title IV programs 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 September 30, 2021 and December 31, 2020, excluding the restricted certificates of deposit, was $1.8 million and $1.2 million, respectively. Total restricted cash as of September 30, 2021 and December 31, 2020 is $26.6 million and $1.2 million, respectively. Fair Value of Financial Instruments The Company measures certain financial assets at fair value for disclosure purposes, as well as on a nonrecurring basis when they are deemed to be other-than-temporary impairments. Fair value represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset. Assets recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market used to measure fair value: Level 1 - inputs to the valuation techniques that are quoted prices in active markets for identical assets or liabilities; Level 2 - inputs to the valuation techniques that are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly; or Level 3 - inputs to the valuation techniques that are unobservable for the assets or liabilities. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company’s cash, cash equivalents, and restricted cash, accounts receivable, accounts payable and accrued liabilities are all short-term in nature. As such, their carrying amounts approximate fair value and fall within Level 1 of the fair value hierarchy. The carrying value of long-term debt approximates fair value as it is based on variable rate index. 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 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. During the three months ended June 30, 2021, the Company determined that impairment indicators existed and concluded the fair value of a cost method investment was less than its carrying amount, resulting in a pretax non-cash impairment charge of approximately $0.8 million. This impairment charge is included in equity investment loss in the Consolidated Statements of Income. There was no impairment charge during the three months ended September 30, 2021 and during the nine months ended September 30, 2020. As of September 30, 2021, the aggregate carrying amount of the Company’s investments accounted for under Financial Accounting Standards Board Accounting Standards Codification 321, Investments - Equity Securities, or FASB ASC 321, presented on its Consolidated Balance Sheets on a one-line basis as “Investments”, was approximately $8.5 million. Self-Insured Liabilities RU has a partially self-insured health plan (the Plan) for employee health benefits and records self-insurance liabilities based on claims filed and an estimate of claims incurred but not yet reported. The Plan carries insurance with a yearly loss limit per person of $225,000 and a maximum claims expense of 125% of the average claim value. Self-insurance liabilities for employee health benefits claims are recorded in the accrued compensation and benefits line item of the Consolidated Balance Sheet and are $1.3 million as of September 30, 2021. Goodwill and Intangible Assets Goodwill represents the excess of the purchase price of an acquired business over the amount assigned to the tangible and intangible assets and liabilities assumed. Intangible assets are recorded at their estimated fair value as of the acquisition date, and are classified as either indefinite-lived or definite-lived. Indefinite-lived intangible assets are trade name and accreditation, licensing and Title IV. Definite-lived intangible assets are student roster, curricula, and lead conversions. Goodwill and indefinite-lived intangible assets are assessed at least annually for impairment or more frequently if circumstances indicate potential impairment. Definite-lived intangible assets are amortized on a straight-line basis over the estimated useful life of the asset. 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 an 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 and nine months ended September 30, 2021 and 2020 was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (Unaudited) (Unaudited) Instructional costs and services $ 274 $ 343 $ 1,129 $ 1,223 Selling and promotional 142 252 706 729 General and administrative 1,388 1,347 4,134 3,313 Stock-based compensation expense in operating income $ 1,804 $ 1,942 $ 5,969 $ 5,265 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 $0.1 million and $2.6 million during the three and nine month periods ended September 30, 2021, compared to an aggregate expense of $2.1 million and $5.1 million during the three and nine month periods ended September 30, 2020. Common Stock On March 1, 2021, the Company completed an underwritten public offering of 3,680,000 shares of its 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 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 | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition Activity | Acquisition Activity On September 1, 2021, the Company completed the Rasmussen Acquisition. The Rasmussen Acquisition was completed pursuant to a Membership Interest Purchase Agreement, or the Purchase Agreement, dated October 28, 2020, by and among the Company, FAH Education, LLC, or Seller, Rasmussen, LLC, or Rasmussen, and Rasmussen College, LLC, a wholly owned subsidiary of Rasmussen, or Rasmussen College. Pursuant to the Purchase Agreement, on the Closing Date, the Company purchased from Seller all membership interests in Rasmussen for an adjusted aggregate purchase price, subject to post-closing working capital adjustments, and net of cash acquired, of $325.5 million in cash. Upon completion of the Rasmussen Acquisition, Rasmussen merged into Rasmussen College and Rasmussen College became a wholly owned subsidiary of the Company. The Company applied the acquisition method of accounting to the Rasmussen Acquisition, whereby the excess of the acquisition date fair value of consideration transferred over the fair value of identifiable net assets was allocated to goodwill. Goodwill reflects the fair value associated with the RU workforce and synergies expected from cost savings, operations, and revenue enhancements of the combined company that are expected to result from the acquisition. The goodwill recorded as part of the acquisition was allocated to the Rasmussen reportable segment in the amount of $217.2 million and is deductible for tax purposes. For the three and nine months ended September 30, 2021, the Company incurred approximately $1.5 million and $5.0 million of acquisition-related expenses, respectively, which are included in general and administrative on the Consolidated Statements of Income. The preliminary opening balance sheet is subject to adjustment based on a final assessment of the fair values of certain acquired assets and liabilities, primarily intangible assets and goodwill. The Company has up to one year from the Closing Date, or the measurement period, to complete the allocation of the purchase price. As the Company finalizes its assessment of the fair values of certain acquired assets and liabilities assumed, additional purchase price adjustments may be recorded during the measurement period. The Company will reflect measurement period adjustments, if any, in the period in which the adjustments occur. The following table summarizes the components of the estimated consideration along with the purchase price allocation (in thousands): Purchase Price Allocation (Unaudited) Amount Cash and cash equivalents $ 329,000 Working capital adjustment and additional cash contributions 1,704 Total consideration 330,704 Assets acquired: Cash and cash equivalents 5,200 Accounts receivable 10,700 Prepaid expenses 4,600 Property and equipment, net 36,996 Operating lease assets 75,800 Deferred tax asset 3,205 Intangible assets 86,500 Other assets 600 Total assets acquired 223,601 Liabilities assumed: Accounts payable 1,200 Accrued expenses 6,700 Deferred revenue 22,700 Operating lease liabilities, current 11,200 Operating lease liabilities, long-term 67,000 Other liabilities 1,300 Total liabilities assumed 110,100 Net assets acquired 113,501 Goodwill $ 217,203 The fair value of the identified intangible assets including the trade name, student roster, and lead conversions were determined using the income-based approach. The fair value of curricula and accreditation, licensing, and Title IV identified intangible assets were determined using the cost approach. The table below presents a summary of intangible assets acquired and the useful lives of these assets (in thousands): Intangible Assets (Unaudited) Useful life Amount Trade name Indefinite 26,500 Accreditation, licensing and Title IV Indefinite 24,500 Student roster 2 years 20,000 Curricula 3 years 14,000 Lead conversions 2 years 1,500 $ 86,500 Pro Forma Financial Information The following unaudited pro forma information is presented as if the Rasmussen Acquisition occurred on January 1, 2020. In preparing the pro forma results, the Company is required to make estimates and assumption including with respect to underlying financial performance, purchase accounting, appropriate depreciation and amortization methods, effective tax rate, and future interest rates, among other estimates and assumptions. The Company believes that these estimates and assumptions are reasonable under the circumstances. The pro forma results do not represent what may occur in the future as 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. The table below presents the Company’s pro forma combined revenue and net income (in thousands): Nine Months Ended September 30, 2021 2020 (Unaudited) Revenue $ 446,984 $ 427,415 Net Income 15,781 16,499 Graduate School USA |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 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 September 30, 2021 (Unaudited) APUS RU HCN Intersegment Consolidated Instructional services, net of grants and scholarships $ 65,321 $ 17,838 $ 9,534 $ (30) $ 92,663 Graduation fees 397 — — — 397 Textbook and other course materials — 3,282 1,556 — 4,838 Other fees 188 12 150 — 350 Total Revenue $ 65,906 $ 21,132 $ 11,240 $ (30) $ 98,248 Three Months Ended September 30, 2020 (Unaudited) APUS RU HCN Intersegment Consolidated Instructional services, net of grants and scholarships $ 69,058 $ — $ 7,977 $ (67) $ 76,968 Graduation fees 401 — — — 401 Textbook and other course materials — — 1,411 — 1,411 Other fees 200 — 153 — 353 Total Revenue $ 69,659 $ — $ 9,541 $ (67) $ 79,133 Nine Months Ended September 30, 2021 (Unaudited) APUS RU HCN Intersegment Consolidated Instructional services, net of grants and scholarships $ 208,727 $ 17,838 $ 28,290 $ (156) $ 254,699 Graduation fees 1,042 — — — 1,042 Textbook and other course materials — 3,282 4,801 — 8,083 Other fees 552 12 415 — 979 Total Revenue $ 210,321 $ 21,132 $ 33,506 $ (156) $ 264,803 Nine Months Ended September 30, 2020 (Unaudited) APUS RU HCN Intersegment Consolidated Instructional services, net of grants and scholarships $ 208,773 $ — $ 21,636 $ (182) $ 230,227 Graduation fees 1,001 — — — 1,001 Textbook and other course materials — — 3,634 — 3,634 Other fees 602 — 412 — 1,014 Total Revenue $ 210,376 $ — $ 25,682 $ (182) $ 235,876 The RU Segment reflects the operations of RU, which was acquired on the Closing Date, through September 30, 2021. The Company did not consolidate the financial results of the RU Segment prior to the Closing Date. The APUS Segment charges the HCN Segment and corporate employees 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 September 30, 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 RU and HCN. Deferred revenue at September 30, 2021 was $26.0 million and includes $9.2 million in future revenue that has not yet been earned for courses and terms that are in progress, as well as $16.8 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 ASC 310, Receivables . 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. |
Leases
Leases | 9 Months Ended |
Sep. 30, 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 Company leases corporate office space in Maryland under an operating lease that expires in May 2022, and until May 2021, leased administrative office space in Virginia. The RU Segment leases administrative office space in suburban Chicago, Illinois, and Minneapolis, Minnesota, and leases 23 campuses located in six states under operating leases that expire through October 2033. The HCN Segment leases administrative office space in suburban Columbus, Ohio, and leases six campuses located in Ohio and one campus in Indianapolis, Indiana, under operating leases that expire through June 2029. In November 2021, HCN entered into a lease agreement for a new campus location in suburban Detroit, Michigan for a lease term beginning in April 2022 and expiring in March 2032. The total value of the minimum rental payments for the initial term of this lease is $4.9 million. 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 lease assets and 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 estimates 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 and nine month periods ended September 30, 2021 was $1.8 million and $3.4 million, respectively, compared to $0.7 million and $2.2 million for the three and nine month periods ended September 30, 2020, 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 the three and nine month periods ended September 30, 2021 was $1.9 million and $3.4 million, respectively, and is included in operating cash flows. Cash paid for amounts included in the present value of operating lease liabilities during the three and nine month periods ended September 30, 2020 was $0.7 million and $2.2 million, respectively, 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 September 30, 2021 (dollars in thousands): Maturity of Lease Liabilities (Unaudited) Lease Payments 2021 (remaining) $ 4,053 2022 16,036 2023 13,087 2024 11,377 2025 10,150 2026 9,916 2027 and beyond 33,572 Total future minimum lease payments 98,191 Less imputed interest (10,895) Present value of operating lease liabilities $ 87,296 Balance Sheet Classification (Unaudited) Operating lease liabilities, current $ 13,876 Operating lease liabilities, long-term 73,420 Total operating lease liabilities $ 87,296 Other Information (Unaudited) Weighted average remaining lease term (in years) 7.76 Weighted average discount rate 3.1 % |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets In connection with the Rasmussen Acquisition, the Company applied FASB ASC 805, Business Combinations , using the acquisition method of accounting, and recorded $217.2 million of goodwill, representing the excess of the purchase price over the fair value of assets acquired and liabilities assumed, including identifiable intangible assets. The Company previously recorded goodwill in the amount of $38.6 million in connection with its acquisition of HCN, and later recorded charges reducing the carrying value of our goodwill to $26.6 million. Changes in the carrying amount of goodwill by reportable segment during the years ended September 30, 2021 and 2020 are as follows (in thousands): APUS Segment RU Segment HCN Segment Total Goodwill (Unaudited) Goodwill as of December 31, 2020 $ — $ — $ 26,563 $ 26,563 Goodwill acquired — 217,203 — 217,203 Impairment — — — — Goodwill as of September 30, 2021 $ — $ 217,203 $ 26,563 $ 243,766 In addition to goodwill, in connection with the acquisitions of RU and HCN, the Company recorded identified intangible assets with an indefinite useful life in the aggregate amount of $51.0 million and $3.7 million, respectively, which includes trade name, accreditation, licensing and Title IV, and affiliate agreements, and recorded $35.5 million and $4.4 million, respectively, of identified intangible assets with a definite useful life. At the acquisition date, the useful life assigned to each type of intangible asset with a definite useful life was as follows for the RU Segment: Useful Life Curricula 3 years Lead conversions 2 years Student Roster 2 years As of September 30, 2021 and December 31, 2020, all HCN Segment recorded identified intangible assets with a definite useful life were fully amortized. HCN Segment indefinite-lived Intangible assets, consist of the following as of September 30, 2021 and December 31, 2020 (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount (Unaudited) Indefinite-lived intangible assets Trade name 1,998 — 1,998 Accreditation, licensing and Title IV 1,686 — 1,686 Affiliation agreements 37 — 37 Total indefinite-lived intangible assets 3,721 — 3,721 RU Segment Intangible assets consist of the following as of September 30, 2021 (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount (Unaudited) Finite-lived intangible assets Student roster $ 20,000 833 19,167 Curricula 14,000 389 13,611 Lead conversions 1,500 63 1,437 Total finite-lived intangible assets $ 35,500 $ 1,285 $ 34,215 Indefinite-lived intangible assets Trade name 26,500 — 26,500 Accreditation, licensing and Title IV 24,500 — 24,500 Total indefinite-lived intangible assets 51,000 — 51,000 Total intangible assets $ 86,500 $ 1,285 $ 85,215 The Company evaluated events and circumstances related to the valuation of goodwill and intangibles, recorded within our HCN Segment, through September 30, 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 three and nine months ended September 30, 2021 and 2020, and consequently, there were no impairment of goodwill or intangible assets during those periods. Determining the fair value of HCN goodwill and intangible assets requires judgment and the use of significant estimates and assumptions, including fluctuations in enrollments, revenue growth rates, operating margins, discount rates and future economic market conditions, among others. Given the current competitive and regulatory environment, and the uncertainties regarding the related impact on HCN’s business, there can be no assurance that the estimates and assumptions made for purposes of the Company’s interim and annual goodwill impairment tests will prove to be accurate predictions of the future. If the Company’s assumptions are not realized, the Company may record additional goodwill impairment charges in future periods. It is not possible at this time to determine if any such future impairment charge would result or whether such charge would be material. 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. |
Net Income Per Common Share
Net Income Per Common Share | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (Unaudited) (Unaudited) Basic weighted average shares outstanding 18,700 14,797 17,874 14,870 Effect of dilutive restricted stock and options 155 214 174 151 Diluted weighted average shares outstanding 18,855 15,011 18,048 15,021 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 (in thousands). Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (Unaudited) (Unaudited) Antidilutive securities: Stock Options 112 61 112 61 Restricted Shares 11 16 3 48 Total antidilutive securities 123 77 115 109 |
Long Term Debt
Long Term Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long Term Debt | Long-Term Debt On the Closing Date, APEI, as borrower, entered into a Credit Agreement (the “Credit Agreement”) with Macquarie Capital Funding LLC, as administrative agent and collateral agent (the “Agent”), Macquarie Capital USA Inc. and Truist Securities, Inc., as lead arrangers and joint bookrunners, and certain lenders party thereto (the “Lenders”). The Credit Agreement provides for (i) a senior secured term loan facility in an aggregate original principal amount of $175 million (the “Term Loan”) with a scheduled maturity date of September 1, 2027 and (ii) a senior secured revolving loan facility in an aggregate commitment amount of $20 million (the “Revolving Credit Facility” and, together with the Term Loan, the “Facilities”) with a scheduled maturity date of September 1, 2026, the full capacity of which may be utilized for the issuance of letters of credit. The Revolving Credit Facility also includes a $5 million sub-facility for swing line loans. The Term Loan, the proceeds of which were used as part of the cash consideration for the Rasmussen Acquisition, was fully funded on the Closing Date and is presented net of the debt issuance costs of $12.9 million in the Consolidated Balance Sheet. The debt issuance costs are being amortized using the effective interest method over the term of the Term Loan. Debt issuance costs of $0.5 million related to the Revolving Credit Facility were recorded as an asset and are being amortized to interest expense over the term of the Revolving Credit Facility. There were no borrowings outstanding on the Revolving Credit Facility at September 30, 2021. The Credit Agreement provides APEI with the option, subject to certain conditions, including obtaining commitments from one or more lenders, to increase the total commitments under the Revolving Credit Facility, increase the amount of the Term Loan and/or incur incremental term loan facilities in an aggregate amount not to exceed the sum of (A) the greater of (1) $91.0 million and (2) an amount equal to consolidated EBITDA on a pro forma basis for the most recently ended four-quarter period (less the aggregate amount of certain other incremental indebtedness permitted to be incurred by APEI, and plus the aggregate amount of voluntary prepayments of certain other incremental indebtedness permitted to be incurred by APEI) and (B) an amount (1) in the case of secured incremental facilities that rank pari passu with the Facilities, such that the First Lien Net Leverage Ratio would not be greater than 1.50 to 1.00 and the Total Net Leverage Ratio would not be greater than 2.00 to 1.00, (2) in the case of secured incremental facilities that rank junior to the Facilities, such that the Secured Net Leverage Ratio would not be greater than 1.75 to 1.00 and the Total Net Leverage Ratio would not be greater than 2.00 to 1.00, and (3) in the case of unsecured incremental facilities, such that the Total Net Leverage Ratio would not be greater than 2.00 to 1.00 or the Interest Coverage Ratio would not be less than 2.00 to 1.00. The First Lien Net Leverage Ratio, the Secured Net Leverage Ratio and the Total Net Leverage Ratio are each defined in the Credit Agreement and reflect a ratio of (x) in the case of the First Lien Net Leverage Ratio, consolidated first lien indebtedness (net of unrestricted cash and cash equivalents in excess of $50.0 million) to consolidated EBITDA, (y) in the case of the Secured Net Leverage Ratio, consolidated secured indebtedness (net of unrestricted cash and cash equivalents in excess of $50.0 million) to consolidated EBITDA, and (z) in the case of the Total Net Leverage Ratio, consolidated total indebtedness to consolidated EBITDA. The Interest Coverage Ratio is also defined in the Credit Agreement and reflects a ratio of consolidated EBITDA to consolidated interest expense. Outstanding borrowings under the Facilities bear interest at a per annum rate equal to LIBOR (subject to a 0.75% floor) plus 5.50%, which shall increase by an additional 2.00% on all past due obligations if APEI fails to pay any amount when due. An unused commitment fee in the amount of 0.50% is payable quarterly in arrears based on the average daily unused amount of the commitments under the Revolving Credit Facility. APEI is also required to make principal payments of the Term Loan on the last day of each quarter, commencing with the quarter ending December 31, 2021, in an amount equal to $2.2 million per quarter. Subject to certain exceptions, APEI is required to make mandatory prepayments of the Term Loan, with the proceeds of asset sales, casualty and condemnation events, and unpermitted debt issuances. The Facilities are and will be guaranteed by APEI’s subsidiaries and certain of APEI’s future subsidiaries that are required to become a party thereto as guarantors (collectively, the “Guarantors”). The obligations of APEI and the Guarantors are secured by a pledge of substantially all of their respective assets pursuant to the terms of the Collateral Agreement dated as of the Closing Date by and among APEI, the Agent and the Guarantors from time to time party thereto (the “Collateral Agreement”). The Credit Agreement contains customary affirmative and negative covenants, including limitations on APEI’s and its subsidiaries’ abilities, among other things, to incur additional debt, grant or permit additional liens, make investments and acquisitions, merge or consolidate with others, dispose of assets, pay dividends and distributions and enter into affiliate transactions, in each case, subject to certain exceptions, as well as customary representations, warranties, events of default, and remedies upon default, including acceleration and rights to foreclose on the collateral securing the Facilities. In addition, the Credit Agreement contains a financial covenant that requires APEI to maintain a Total Net Leverage Ratio of no greater than 2.0 to 1.0. Long-term debt consists of the following as of September 30, 2021 (in thousands): Long-Term debt (Unaudited) Credit agreement $ 175,000 Deferred financing fees (12,914) Total debt 162,086 Less: Current portion (8,750) Long-term Debt $ 153,336 Scheduled maturities of long-term debt at September 30, 2021 are as follows (in thousands): Maturities of Long-Term Debt (Unaudited) Loan Payments 2021 (remaining) $ 2,188 2022 8,750 2023 8,750 2024 8,750 2025 8,750 2026 8,750 Thereafter 129,062 Total $ 175,000 Derivatives and Hedging The Company is subject to interest rate risk as all outstanding borrowings under the Credit Agreement are subject to a variable rate of interest. On September 30, 2021, the Company entered into an interest rate cap agreement to manage its exposure to the variable rate of interest with a total notional value of $87.5 million. This interest rate cap agreement, designated as a cash flow hedge, provides the Company with interest rate protection in the event the LIBOR rate exceeds 2.0%. The interest rate cap is effective October 1, 2021 and will expire on January 1, 2025. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information In the third quarter of 2021, in connection with the Rasmussen Acquisition (as further described in Note 3, “Acquisition Activity”), the Company revised its reportable segments to reflect the manner in which the chief operating decision-maker evaluates performance and allocates resources, and to include RU as a separately reportable segment. Prior to the third quarter of 2021, the Company had two reportable segments: the American Public Education, Inc. Segment, or APEI Segment, and the HCN Segment. Post-acquisition, the Company has three reportable segments: the APUS Segment, which was previously included within the former APEI Segment; the Rasmussen Segment; and the HCN Segment. The APEI Segment previously reported the results of both APUS and remaining unallocated Company expenses. Adjustments to reconcile segment results to the Consolidated Financial Statements are included in “Corporate and Other”, which primarily includes unallocated corporate activity and eliminations, which generally were previously reported within the APEI Segment. Prior periods have been updated to conform to the revised presentation. 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 APUS, RU, and HCN Segments. The RU Segment reflects the operations of RU, which was acquired on the Closing Date, through September 30, 2021. The Company did not consolidate the financial results of the RU Segment prior to the Closing Date. A summary of financial information by reportable segment is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (Unaudited) (Unaudited) Revenue: APUS Segment $ 65,906 $ 69,659 $ 210,321 $ 210,376 RU Segment 21,132 — 21,132 — HCN Segment 11,240 9,541 33,506 25,682 Corporate and Other (30) (67) (156) (182) Total Revenue $ 98,248 $ 79,133 $ 264,803 $ 235,876 Depreciation and amortization: APUS Segment $ 2,246 $ 3,057 $ 7,071 $ 9,451 RU Segment 1,935 — 1,935 — HCN Segment 195 159 524 473 Corporate and Other 10 10 31 31 Total Depreciation and amortization $ 4,386 $ 3,226 $ 9,561 $ 9,955 Income (loss) from operations before interest and income taxes: APUS Segment $ 7,825 $ 7,392 $ 30,969 $ 29,785 RU Segment (999) — (999) — HCN Segment 448 466 1,348 (455) Corporate and Other (6,012) (4,550) (17,444) (14,288) Total income from operations before interest and income taxes $ 1,262 $ 3,308 $ 13,874 $ 15,042 Interest (expense) income: APUS Segment $ 41 $ 78 $ 171 $ 251 RU Segment — — — — HCN Segment 2 2 6 16 Corporate and Other (1,348) 41 (1,344) 735 Total Interest (expense) income $ (1,305) $ 121 $ (1,167) $ 1,002 Income tax expense (benefit): APUS Segment $ 2,606 $ 1,769 $ 9,673 $ 7,944 RU Segment (371) — (371) — HCN Segment 250 130 494 (116) Corporate and Other (2,261) (1,114) (6,287) (3,537) Total Income tax expense $ 224 $ 785 $ 3,509 $ 4,291 Capital expenditures: APUS Segment $ 1,159 $ 1,271 $ 2,973 $ 4,015 RU Segment 1,259 — 1,259 — HCN Segment 367 7 1,581 156 Total Capital expenditures $ 2,785 $ 1,278 $ 5,813 $ 4,171 A summary of the Company’s consolidated assets by reportable segment is as follows (in thousands): As of September 30, 2021 As of December 31, 2020 (Unaudited) Assets: APUS Segment $ 128,331 $ 112,461 RU Segment 432,767 — HCN Segment 52,827 48,474 Corporate and Other 109,262 210,083 Total Assets $ 723,187 $ 371,018 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 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 | 9 Months Ended |
Sep. 30, 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 September 30, 2021, approximately 63% 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 APUS Segment revenue derived from students by primary funding source for the three and nine month periods ended September 30, 2021 and 2020 is included in the table below (unaudited): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 DoD tuition assistance programs 43% 41% 44% 42% VA education benefits 22% 22% 22% 22% Title IV programs 21% 22% 20% 22% Cash and other sources 14% 15% 14% 14% A summary of HCN Segment revenue derived from students by primary funding source for the three and nine month periods ended September 30, 2021 and 2020 is included in the table below (unaudited): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Title IV programs 81% 83% 81% 82% Cash and other sources 18% 14% 18% 16% VA education benefits 1% 3% 1% 2% |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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 assumptions 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 Cash, cash equivalents, and restricted cash includes funds held for students for unbilled educational services that were received from Title IV programs and, as of September 30, 2021, amounts to secure letters of credit, including $24.2 million in a restricted certificate of deposit account to secure a letter of credit for the benefit of the ED on behalf of RU in connection with RU’s 2020 composite score, which is used by ED for determining compliance with financial responsibility standards, being below the minimum required, and a $0.6 million restricted certificate of deposit to secure a letter of credit in lieu of a security deposit for an RU leased campus. The Company is required to maintain funds from Title IV programs and restrict these funds pursuant to the terms of the applicable institution’s program participation agreement with ED. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company measures certain financial assets at fair value for disclosure purposes, as well as on a nonrecurring basis when they are deemed to be other-than-temporary impairments. Fair value represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset. Assets recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market used to measure fair value: Level 1 - inputs to the valuation techniques that are quoted prices in active markets for identical assets or liabilities; Level 2 - inputs to the valuation techniques that are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly; or Level 3 - inputs to the valuation techniques that are unobservable for the assets or liabilities. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. |
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 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. |
Self-Insured Liabilities | Self-Insured LiabilitiesRU has a partially self-insured health plan (the Plan) for employee health benefits and records self-insurance liabilities based on claims filed and an estimate of claims incurred but not yet reported. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of the purchase price of an acquired business over the amount assigned to the tangible and intangible assets and liabilities assumed. Intangible assets are recorded at their estimated fair value as of the acquisition date, and are classified as either indefinite-lived or definite-lived. Indefinite-lived intangible assets are trade name and accreditation, licensing and Title IV. Definite-lived intangible assets are student roster, curricula, and lead conversions. Goodwill and indefinite-lived intangible assets are assessed at least annually for impairment or more frequently if circumstances indicate potential impairment. |
Stock-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 an 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 and nine months ended September 30, 2021 and 2020 was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (Unaudited) (Unaudited) Instructional costs and services $ 274 $ 343 $ 1,129 $ 1,223 Selling and promotional 142 252 706 729 General and administrative 1,388 1,347 4,134 3,313 Stock-based compensation expense in operating income $ 1,804 $ 1,942 $ 5,969 $ 5,265 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 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) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of stock-based compensation cost charged against income | Stock-based compensation expense for the three and nine months ended September 30, 2021 and 2020 was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (Unaudited) (Unaudited) Instructional costs and services $ 274 $ 343 $ 1,129 $ 1,223 Selling and promotional 142 252 706 729 General and administrative 1,388 1,347 4,134 3,313 Stock-based compensation expense in operating income $ 1,804 $ 1,942 $ 5,969 $ 5,265 |
Acquisition Activity (Tables)
Acquisition Activity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Identifiable Assets Acquired and Liabilities Assumed Based on the Fair Values | The following table summarizes the components of the estimated consideration along with the purchase price allocation (in thousands): Purchase Price Allocation (Unaudited) Amount Cash and cash equivalents $ 329,000 Working capital adjustment and additional cash contributions 1,704 Total consideration 330,704 Assets acquired: Cash and cash equivalents 5,200 Accounts receivable 10,700 Prepaid expenses 4,600 Property and equipment, net 36,996 Operating lease assets 75,800 Deferred tax asset 3,205 Intangible assets 86,500 Other assets 600 Total assets acquired 223,601 Liabilities assumed: Accounts payable 1,200 Accrued expenses 6,700 Deferred revenue 22,700 Operating lease liabilities, current 11,200 Operating lease liabilities, long-term 67,000 Other liabilities 1,300 Total liabilities assumed 110,100 Net assets acquired 113,501 Goodwill $ 217,203 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The fair value of the identified intangible assets including the trade name, student roster, and lead conversions were determined using the income-based approach. The fair value of curricula and accreditation, licensing, and Title IV identified intangible assets were determined using the cost approach. The table below presents a summary of intangible assets acquired and the useful lives of these assets (in thousands): Intangible Assets (Unaudited) Useful life Amount Trade name Indefinite 26,500 Accreditation, licensing and Title IV Indefinite 24,500 Student roster 2 years 20,000 Curricula 3 years 14,000 Lead conversions 2 years 1,500 $ 86,500 |
Schedule of Pro Forma Financial Information | The table below presents the Company’s pro forma combined revenue and net income (in thousands): Nine Months Ended September 30, 2021 2020 (Unaudited) Revenue $ 446,984 $ 427,415 Net Income 15,781 16,499 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2021 (Unaudited) APUS RU HCN Intersegment Consolidated Instructional services, net of grants and scholarships $ 65,321 $ 17,838 $ 9,534 $ (30) $ 92,663 Graduation fees 397 — — — 397 Textbook and other course materials — 3,282 1,556 — 4,838 Other fees 188 12 150 — 350 Total Revenue $ 65,906 $ 21,132 $ 11,240 $ (30) $ 98,248 Three Months Ended September 30, 2020 (Unaudited) APUS RU HCN Intersegment Consolidated Instructional services, net of grants and scholarships $ 69,058 $ — $ 7,977 $ (67) $ 76,968 Graduation fees 401 — — — 401 Textbook and other course materials — — 1,411 — 1,411 Other fees 200 — 153 — 353 Total Revenue $ 69,659 $ — $ 9,541 $ (67) $ 79,133 Nine Months Ended September 30, 2021 (Unaudited) APUS RU HCN Intersegment Consolidated Instructional services, net of grants and scholarships $ 208,727 $ 17,838 $ 28,290 $ (156) $ 254,699 Graduation fees 1,042 — — — 1,042 Textbook and other course materials — 3,282 4,801 — 8,083 Other fees 552 12 415 — 979 Total Revenue $ 210,321 $ 21,132 $ 33,506 $ (156) $ 264,803 Nine Months Ended September 30, 2020 (Unaudited) APUS RU HCN Intersegment Consolidated Instructional services, net of grants and scholarships $ 208,773 $ — $ 21,636 $ (182) $ 230,227 Graduation fees 1,001 — — — 1,001 Textbook and other course materials — — 3,634 — 3,634 Other fees 602 — 412 — 1,014 Total Revenue $ 210,376 $ — $ 25,682 $ (182) $ 235,876 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2021 (dollars in thousands): Maturity of Lease Liabilities (Unaudited) Lease Payments 2021 (remaining) $ 4,053 2022 16,036 2023 13,087 2024 11,377 2025 10,150 2026 9,916 2027 and beyond 33,572 Total future minimum lease payments 98,191 Less imputed interest (10,895) Present value of operating lease liabilities $ 87,296 |
Balance sheet classification | Balance Sheet Classification (Unaudited) Operating lease liabilities, current $ 13,876 Operating lease liabilities, long-term 73,420 Total operating lease liabilities $ 87,296 |
Schedule of information related to leases | Other Information (Unaudited) Weighted average remaining lease term (in years) 7.76 Weighted average discount rate 3.1 % |
Intangible Assets, Goodwill and
Intangible Assets, Goodwill and Other (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in carrying amount of goodwill by reportable segments | Changes in the carrying amount of goodwill by reportable segment during the years ended September 30, 2021 and 2020 are as follows (in thousands): APUS Segment RU Segment HCN Segment Total Goodwill (Unaudited) Goodwill as of December 31, 2020 $ — $ — $ 26,563 $ 26,563 Goodwill acquired — 217,203 — 217,203 Impairment — — — — Goodwill as of September 30, 2021 $ — $ 217,203 $ 26,563 $ 243,766 |
Schedule of identified intangible assets with definite life | At the acquisition date, the useful life assigned to each type of intangible asset with a definite useful life was as follows for the RU Segment: Useful Life Curricula 3 years Lead conversions 2 years Student Roster 2 years |
Schedule of Intangible Assets | Intangible assets, consist of the following as of September 30, 2021 and December 31, 2020 (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount (Unaudited) Indefinite-lived intangible assets Trade name 1,998 — 1,998 Accreditation, licensing and Title IV 1,686 — 1,686 Affiliation agreements 37 — 37 Total indefinite-lived intangible assets 3,721 — 3,721 RU Segment Intangible assets consist of the following as of September 30, 2021 (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount (Unaudited) Finite-lived intangible assets Student roster $ 20,000 833 19,167 Curricula 14,000 389 13,611 Lead conversions 1,500 63 1,437 Total finite-lived intangible assets $ 35,500 $ 1,285 $ 34,215 Indefinite-lived intangible assets Trade name 26,500 — 26,500 Accreditation, licensing and Title IV 24,500 — 24,500 Total indefinite-lived intangible assets 51,000 — 51,000 Total intangible assets $ 86,500 $ 1,285 $ 85,215 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (Unaudited) (Unaudited) Basic weighted average shares outstanding 18,700 14,797 17,874 14,870 Effect of dilutive restricted stock and options 155 214 174 151 Diluted weighted average shares outstanding 18,855 15,011 18,048 15,021 |
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 (in thousands). Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (Unaudited) (Unaudited) Antidilutive securities: Stock Options 112 61 112 61 Restricted Shares 11 16 3 48 Total antidilutive securities 123 77 115 109 |
Long Term Debt (Tables)
Long Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long term debt | Long-term debt consists of the following as of September 30, 2021 (in thousands): Long-Term debt (Unaudited) Credit agreement $ 175,000 Deferred financing fees (12,914) Total debt 162,086 Less: Current portion (8,750) Long-term Debt $ 153,336 |
Schedule of maturities of long term debt | Scheduled maturities of long-term debt at September 30, 2021 are as follows (in thousands): Maturities of Long-Term Debt (Unaudited) Loan Payments 2021 (remaining) $ 2,188 2022 8,750 2023 8,750 2024 8,750 2025 8,750 2026 8,750 Thereafter 129,062 Total $ 175,000 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (Unaudited) (Unaudited) Revenue: APUS Segment $ 65,906 $ 69,659 $ 210,321 $ 210,376 RU Segment 21,132 — 21,132 — HCN Segment 11,240 9,541 33,506 25,682 Corporate and Other (30) (67) (156) (182) Total Revenue $ 98,248 $ 79,133 $ 264,803 $ 235,876 Depreciation and amortization: APUS Segment $ 2,246 $ 3,057 $ 7,071 $ 9,451 RU Segment 1,935 — 1,935 — HCN Segment 195 159 524 473 Corporate and Other 10 10 31 31 Total Depreciation and amortization $ 4,386 $ 3,226 $ 9,561 $ 9,955 Income (loss) from operations before interest and income taxes: APUS Segment $ 7,825 $ 7,392 $ 30,969 $ 29,785 RU Segment (999) — (999) — HCN Segment 448 466 1,348 (455) Corporate and Other (6,012) (4,550) (17,444) (14,288) Total income from operations before interest and income taxes $ 1,262 $ 3,308 $ 13,874 $ 15,042 Interest (expense) income: APUS Segment $ 41 $ 78 $ 171 $ 251 RU Segment — — — — HCN Segment 2 2 6 16 Corporate and Other (1,348) 41 (1,344) 735 Total Interest (expense) income $ (1,305) $ 121 $ (1,167) $ 1,002 Income tax expense (benefit): APUS Segment $ 2,606 $ 1,769 $ 9,673 $ 7,944 RU Segment (371) — (371) — HCN Segment 250 130 494 (116) Corporate and Other (2,261) (1,114) (6,287) (3,537) Total Income tax expense $ 224 $ 785 $ 3,509 $ 4,291 Capital expenditures: APUS Segment $ 1,159 $ 1,271 $ 2,973 $ 4,015 RU Segment 1,259 — 1,259 — HCN Segment 367 7 1,581 156 Total Capital expenditures $ 2,785 $ 1,278 $ 5,813 $ 4,171 |
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 September 30, 2021 As of December 31, 2020 (Unaudited) Assets: APUS Segment $ 128,331 $ 112,461 RU Segment 432,767 — HCN Segment 52,827 48,474 Corporate and Other 109,262 210,083 Total Assets $ 723,187 $ 371,018 |
Concentration (Tables)
Concentration (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
Summary of APEI segment revenue | A summary of APUS Segment revenue derived from students by primary funding source for the three and nine month periods ended September 30, 2021 and 2020 is included in the table below (unaudited): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 DoD tuition assistance programs 43% 41% 44% 42% VA education benefits 22% 22% 22% 22% Title IV programs 21% 22% 20% 22% Cash and other sources 14% 15% 14% 14% Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Title IV programs 81% 83% 81% 82% Cash and other sources 18% 14% 18% 16% VA education benefits 1% 3% 1% 2% |
Nature of the Business (Details
Nature of the Business (Details) | 9 Months Ended |
Sep. 30, 2021campussegmentstate | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | segment | 3 |
RU Segment | |
Segment Reporting Information [Line Items] | |
Number of campuses | 23 |
Number of states | state | 6 |
HCN Segment | Ohio | |
Segment Reporting Information [Line Items] | |
Number of campuses | 6 |
HCN Segment | Indiana | |
Segment Reporting Information [Line Items] | |
Number of campuses | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Escrow deposit | $ 24,200 | $ 24,200 | ||||
Letter of credit facility | 600 | 600 | ||||
Restricted cash, excluding certificates of deposit | 1,800 | 1,800 | ||||
Restricted cash | 26,600 | 26,600 | $ 1,200 | |||
Investments | 8,500 | 8,500 | ||||
Annual loss limit per person | $ 225 | |||||
Maximum claims expense | 125.00% | |||||
Self insurance reserve | 1,300 | $ 1,300 | ||||
Options previously granted vesting period | 3 years | |||||
Award accelerated service period | 1 year | |||||
Stock-based compensation expense in operating income | 1,804 | $ 1,942 | $ 5,969 | $ 5,265 | ||
Incentive-Based Compensation Plan | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Stock-based compensation expense in operating income | 100 | $ 2,100 | $ 2,600 | 5,100 | ||
COVID-19 | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Cost method investment impairments | $ 0 | $ 800 | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense in operating income | $ 1,804 | $ 1,942 | $ 5,969 | $ 5,265 |
Instructional costs and services | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense in operating income | 274 | 343 | 1,129 | 1,223 |
Selling and promotional | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense in operating income | 142 | 252 | 706 | 729 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense in operating income | $ 1,388 | $ 1,347 | $ 4,134 | $ 3,313 |
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 - Narrativ
Acquisition Activity - Narrative (Details) - USD ($) $ in Thousands | Sep. 01, 2021 | Aug. 11, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||||
Ending balance | $ 243,766 | $ 243,766 | $ 26,563 | ||
Acquisition-related expenses | $ 1,500 | $ 5,000 | |||
RU | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire businesses, net of cash acquired | $ 325,500 | ||||
Ending balance | $ 217,203 | ||||
Graduate School USA | |||||
Business Acquisition [Line Items] | |||||
Asset acquisition, consideration transferred | $ 1,000 |
Acquisition Activity - Assets A
Acquisition Activity - Assets Acquired and Liabilities (Details) - USD ($) $ in Thousands | Sep. 01, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Assets acquired: | |||
Deferred tax asset | $ 3,205 | ||
Intangible assets | 86,500 | ||
Liabilities assumed: | |||
Ending balance | $ 243,766 | $ 26,563 | |
RU | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 329,000 | ||
Working capital adjustment and additional cash contributions | 1,704 | ||
Total consideration | 330,704 | ||
Assets acquired: | |||
Cash and cash equivalents | 5,200 | ||
Accounts receivable | 10,700 | ||
Prepaid expenses | 4,600 | ||
Property and equipment, net | 36,996 | ||
Operating lease assets | 75,800 | ||
Intangible assets | 86,500 | ||
Other assets | 600 | ||
Total assets acquired | 223,601 | ||
Liabilities assumed: | |||
Accounts payable | 1,200 | ||
Accrued expenses | 6,700 | ||
Deferred revenue | 22,700 | ||
Operating lease liabilities, current | 11,200 | ||
Operating lease liabilities, long-term | 67,000 | ||
Other liabilities | 1,300 | ||
Total liabilities assumed | 110,100 | ||
Net assets acquired | 113,501 | ||
Ending balance | $ 217,203 |
Acquisition Activity - Schedule
Acquisition Activity - Schedule of Fair Value of Identified Intangible Assets Acquired (Details) $ in Thousands | Sep. 01, 2021USD ($) |
Business Acquisition [Line Items] | |
Total recognized identified intangible assets | $ 86,500 |
Student Roster | |
Business Acquisition [Line Items] | |
Useful Life | 2 years |
Identified intangible assets with finite useful life | $ 20,000 |
Curricula | |
Business Acquisition [Line Items] | |
Useful Life | 3 years |
Identified intangible assets with finite useful life | $ 14,000 |
Lead conversions | |
Business Acquisition [Line Items] | |
Useful Life | 2 years |
Identified intangible assets with finite useful life | $ 1,500 |
Trade name | |
Business Acquisition [Line Items] | |
Identified intangible assets with indefinite useful life | 26,500 |
Accreditation, licensing and Title IV | |
Business Acquisition [Line Items] | |
Identified intangible assets with indefinite useful life | $ 24,500 |
Acquisition Activity - Pro Form
Acquisition Activity - Pro Forma Financial Information (Details) - RU - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Business Acquisition [Line Items] | ||
Revenue | $ 446,984 | $ 427,415 |
Net Income | $ 15,781 | $ 16,499 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 98,248 | $ 79,133 | $ 264,803 | $ 235,876 |
Instructional services, net of grants and scholarships | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 92,663 | 76,968 | 254,699 | 230,227 |
Graduation fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 397 | 401 | 1,042 | 1,001 |
Textbook and other course materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 4,838 | 1,411 | 8,083 | 3,634 |
Other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 350 | 353 | 979 | 1,014 |
Intersegment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | (30) | (67) | (156) | (182) |
Intersegment | Instructional services, net of grants and scholarships | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | (30) | (67) | (156) | (182) |
Intersegment | Graduation fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Intersegment | Textbook and other course materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Intersegment | Other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
APUS Segment | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 65,906 | 69,659 | 210,321 | 210,376 |
APUS Segment | Operating Segments | Instructional services, net of grants and scholarships | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 65,321 | 69,058 | 208,727 | 208,773 |
APUS Segment | Operating Segments | Graduation fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 397 | 401 | 1,042 | 1,001 |
APUS Segment | Operating Segments | Textbook and other course materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
APUS Segment | Operating Segments | Other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 188 | 200 | 552 | 602 |
RU Segment | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 21,132 | 0 | 21,132 | 0 |
RU Segment | Operating Segments | Instructional services, net of grants and scholarships | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 17,838 | 0 | 17,838 | 0 |
RU Segment | Operating Segments | Graduation fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
RU Segment | Operating Segments | Textbook and other course materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 3,282 | 0 | 3,282 | 0 |
RU Segment | Operating Segments | Other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 12 | 0 | 12 | 0 |
HCN | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 11,240 | 9,541 | 33,506 | 25,682 |
HCN | Operating Segments | Instructional services, net of grants and scholarships | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 9,534 | 7,977 | 28,290 | 21,636 |
HCN | Operating Segments | Graduation fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
HCN | Operating Segments | Textbook and other course materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 1,556 | 1,411 | 4,801 | 3,634 |
HCN | Operating Segments | Other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 150 | $ 153 | $ 415 | $ 412 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Disaggregation of Revenue [Line Items] | ||
Contract assets | $ 0 | $ 0 |
Deferred revenue | 25,990,000 | 22,104,000 |
Courses in Progress | ||
Disaggregation of Revenue [Line Items] | ||
Future revenue | 9,200,000 | 13,700,000 |
Future Courses | ||
Disaggregation of Revenue [Line Items] | ||
Future revenue | $ 16,800,000 | $ 8,400,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($)state | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)statecampus | Sep. 30, 2020USD ($) | Oct. 31, 2021USD ($) | |
Lessee, Lease, Description [Line Items] | |||||
Present value of operating lease liabilities | $ 87,296,000 | $ 87,296,000 | |||
Variable lease payments | 0 | 0 | |||
Lease expense | 1,800,000 | $ 700,000 | 3,400,000 | $ 2,200,000 | |
Cash paid for amounts included in operating lease liabilities | $ 1,900,000 | $ 700,000 | $ 3,400,000 | $ 2,200,000 | |
Subsequent Event | April 2022 To March 2032 | |||||
Lessee, Lease, Description [Line Items] | |||||
Present value of operating lease liabilities | $ 4,900,000 | ||||
RU Segment | |||||
Lessee, Lease, Description [Line Items] | |||||
Number of campuses | campus | 23 | ||||
Number of states | state | 6 | 6 | |||
HCN Segment | Ohio | |||||
Lessee, Lease, Description [Line Items] | |||||
Number of campuses | campus | 6 | ||||
HCN Segment | Indiana | |||||
Lessee, Lease, Description [Line Items] | |||||
Number of campuses | campus | 1 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Leases [Abstract] | |
2021 (remaining) | $ 4,053 |
2022 | 16,036 |
2023 | 13,087 |
2024 | 11,377 |
2025 | 10,150 |
2026 | 9,916 |
2027 and beyond | 33,572 |
Total future minimum lease payments | 98,191 |
Less imputed interest | (10,895) |
Present value of operating lease liabilities | $ 87,296 |
Leases - Balance Sheet Classifi
Leases - Balance Sheet Classification (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease liabilities, current | $ 13,876 | $ 2,392 |
Operating lease liabilities, long-term | 73,420 | $ 6,455 |
Present value of operating lease liabilities | $ 87,296 |
Leases - Other Information (Det
Leases - Other Information (Details) | Sep. 30, 2021 |
Leases [Abstract] | |
Weighted average remaining lease term (in years) | 7 years 9 months 3 days |
Weighted average discount rate | 3.10% |
Goodwill and Intangible Assets
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 243,766,000 | $ 243,766,000 | $ 26,563,000 | ||||
Impairment | 0 | ||||||
HCN Segment | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 26,563,000 | 26,563,000 | 26,563,000 | ||||
Impairment of intangible assets | 0 | $ 0 | 0 | $ 0 | |||
Impairment | 0 | $ 0 | 0 | $ 0 | |||
RU | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 217,203,000 | ||||||
Identified intangible assets with indefinite useful life | 51,000,000 | 51,000,000 | |||||
Identified intangible assets with finite useful life | 35,500,000 | 35,500,000 | |||||
HCN Segment | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 26,600,000 | $ 26,600,000 | $ 38,600,000 | ||||
Identified intangible assets with indefinite useful life | 3,700,000 | ||||||
Identified intangible assets with finite useful life | $ 4,400,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill by Reportable Segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill [Roll Forward] | ||||
Beginning balance | $ 26,563,000 | |||
Goodwill acquired | 217,203,000 | |||
Impairment | 0 | |||
Ending balance | $ 243,766,000 | 243,766,000 | ||
APUS Segment | ||||
Goodwill [Roll Forward] | ||||
Beginning balance | 0 | |||
Goodwill acquired | 0 | |||
Impairment | 0 | |||
Ending balance | 0 | 0 | ||
RU Segment | ||||
Goodwill [Roll Forward] | ||||
Beginning balance | 0 | |||
Goodwill acquired | 217,203,000 | |||
Impairment | 0 | |||
Ending balance | 217,203,000 | 217,203,000 | ||
HCN Segment | ||||
Goodwill [Roll Forward] | ||||
Beginning balance | 26,563,000 | |||
Goodwill acquired | 0 | |||
Impairment | 0 | $ 0 | 0 | $ 0 |
Ending balance | $ 26,563,000 | $ 26,563,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Identified Intangible Assets with Definite Life (Details) - RU Segment | 9 Months Ended |
Sep. 30, 2021 | |
Curricula | |
Business Acquisition [Line Items] | |
Useful Life | 3 years |
Lead conversions | |
Business Acquisition [Line Items] | |
Useful Life | 2 years |
Student Roster | |
Business Acquisition [Line Items] | |
Useful Life | 2 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross/net carrying amount | $ 3,721 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Net Carrying Amount | $ 88,936 | 3,721 |
RU Segment | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 35,500 | |
Accumulated Amortization | 1,285 | |
Net Carrying Amount | 34,215 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross Carrying Amount | 86,500 | |
Accumulated Amortization | 1,285 | |
Net Carrying Amount | 85,215 | |
Trade name | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross/net carrying amount | 1,998 | |
Trade name | RU Segment | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross/net carrying amount | 26,500 | |
Accreditation, licensing and Title IV | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross/net carrying amount | 1,686 | |
Accreditation, licensing and Title IV | RU Segment | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross/net carrying amount | 24,500 | |
Affiliation agreements | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross/net carrying amount | $ 37 | |
Affiliation agreements | RU Segment | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross/net carrying amount | 51,000 | |
Student Roster | RU Segment | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 20,000 | |
Accumulated Amortization | 833 | |
Net Carrying Amount | 19,167 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | 833 | |
Curricula | RU Segment | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 14,000 | |
Accumulated Amortization | 389 | |
Net Carrying Amount | 13,611 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | 389 | |
Lead conversions | RU Segment | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 1,500 | |
Accumulated Amortization | 63 | |
Net Carrying Amount | 1,437 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | $ 63 |
Net Income Per Common Share - S
Net Income Per Common Share - Schedule of Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average shares outstanding (in shares) | 18,700 | 14,797 | 17,874 | 14,870 |
Effect of dilutive restricted stock (in shares) | 155 | 214 | 174 | 151 |
Diluted weighted average shares outstanding (in shares) | 18,855 | 15,011 | 18,048 | 15,021 |
Net Income Per Common Share - A
Net Income Per Common Share - Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities (in shares) | 123 | 77 | 115 | 109 |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities (in shares) | 112 | 61 | 112 | 61 |
Restricted Shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities (in shares) | 11 | 16 | 3 | 48 |
Long Term Debt - Narrative (Det
Long Term Debt - Narrative (Details) | Sep. 01, 2021USD ($) | Sep. 30, 2021USD ($) |
Debt Instrument, Redemption [Line Items] | ||
Subfacility amount | $ 600,000 | |
Long-term debt, net | 162,086,000 | |
Maximum total net leverage ratio | 2 | |
Interest Rate Cap | ||
Debt Instrument, Redemption [Line Items] | ||
Derivative notional amount | $ 87,500,000 | |
London Interbank Offered Rate (LIBOR) | Interest Rate Cap | ||
Debt Instrument, Redemption [Line Items] | ||
Spread on derivative instrument | 2.00% | |
Secured Debt | ||
Debt Instrument, Redemption [Line Items] | ||
Adjusted EBITDA amount | $ 50,000,000 | |
Secured Debt | Senior Secured Term Loan Facility | ||
Debt Instrument, Redemption [Line Items] | ||
Principal amount of debt | 175,000,000 | |
Debt issuance costs net | 12,900,000 | |
Deferred financing fees | $ 12,914,000 | |
Floor interest rate | 0.75% | |
Applicable interest rate | 5.50% | |
Variable rate | 2.00% | |
Commitment fee percentage | 0.50% | |
Principal payment amount | $ 2,200,000 | |
Line of Credit | ||
Debt Instrument, Redemption [Line Items] | ||
Adjusted EBITDA amount | 50,000,000 | |
Line of Credit | Revolving Credit Facility | ||
Debt Instrument, Redemption [Line Items] | ||
Current borrowing capacity | 20,000,000 | |
Subfacility amount | 91,000,000 | |
Deferred financing fees | $ 500,000 | |
Long-term debt, net | $ 0 | |
First Lien net leverage ratio | 1.50 | |
Maximum total net leverage ratio | 2 | |
Maximum secured net leverage ratio | 1.75 | |
Minimum interest coverage ratio | 2 | |
Line of Credit | Revolving Credit Facility | Subfacility For Swing Line Loans | ||
Debt Instrument, Redemption [Line Items] | ||
Subfacility amount | $ 5,000,000 |
Long Term Debt - Long term debt
Long Term Debt - Long term debt (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 01, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Credit agreement | $ 175,000 | ||
Total debt | 162,086 | ||
Less: Current portion | (8,750) | $ 0 | |
Long-term Debt | 153,336 | $ 0 | |
Senior Secured Term Loan Facility | Secured Debt | |||
Debt Instrument [Line Items] | |||
Credit agreement | $ 175,000 | ||
Deferred financing fees | $ (12,914) |
Long Term Debt - Maturities of
Long Term Debt - Maturities of long term debt (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
2021 (remaining) | $ 2,188 |
2022 | 8,750 |
2023 | 8,750 |
2024 | 8,750 |
2025 | 8,750 |
2026 | 8,750 |
Thereafter | 129,062 |
Total debt | $ 175,000 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 3 Months Ended | 6 Months Ended | 9 Months Ended |
Sep. 30, 2021campus | Jun. 30, 2021campus | Sep. 30, 2021segment | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 3 | ||
APEI Segment | |||
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 2 | ||
APUS Segment | |||
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 3 |
Segment Information - Summary o
Segment Information - Summary of Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue: | ||||
Total Revenue | $ 98,248 | $ 79,133 | $ 264,803 | $ 235,876 |
Depreciation and amortization: | ||||
Total Depreciation and amortization | 4,386 | 3,226 | 9,561 | 9,955 |
Income (loss) from operations before interest and income taxes: | ||||
Total income from operations before interest and income taxes | 1,262 | 3,308 | 13,874 | 15,042 |
Interest (expense) income: | ||||
Total Interest (expense) income | (1,305) | 121 | (1,167) | 1,002 |
Income tax expense (benefit): | ||||
Total Income tax expense | 224 | 785 | 3,509 | 4,291 |
Capital expenditures: | ||||
Total Capital expenditures | 2,785 | 1,278 | 5,813 | 4,171 |
Corporate and Other | ||||
Revenue: | ||||
Total Revenue | (30) | (67) | (156) | (182) |
Depreciation and amortization: | ||||
Total Depreciation and amortization | 10 | 10 | 31 | 31 |
Income (loss) from operations before interest and income taxes: | ||||
Total income from operations before interest and income taxes | (6,012) | (4,550) | (17,444) | (14,288) |
Interest (expense) income: | ||||
Total Interest (expense) income | (1,348) | 41 | (1,344) | 735 |
Income tax expense (benefit): | ||||
Total Income tax expense | (2,261) | (1,114) | (6,287) | (3,537) |
APUS Segment | Operating Segments | ||||
Revenue: | ||||
Total Revenue | 65,906 | 69,659 | 210,321 | 210,376 |
Depreciation and amortization: | ||||
Total Depreciation and amortization | 2,246 | 3,057 | 7,071 | 9,451 |
Income (loss) from operations before interest and income taxes: | ||||
Total income from operations before interest and income taxes | 7,825 | 7,392 | 30,969 | 29,785 |
Interest (expense) income: | ||||
Total Interest (expense) income | 41 | 78 | 171 | 251 |
Income tax expense (benefit): | ||||
Total Income tax expense | 2,606 | 1,769 | 9,673 | 7,944 |
Capital expenditures: | ||||
Total Capital expenditures | 1,159 | 1,271 | 2,973 | 4,015 |
RU Segment | Operating Segments | ||||
Revenue: | ||||
Total Revenue | 21,132 | 0 | 21,132 | 0 |
Depreciation and amortization: | ||||
Total Depreciation and amortization | 1,935 | 0 | 1,935 | 0 |
Income (loss) from operations before interest and income taxes: | ||||
Total income from operations before interest and income taxes | (999) | 0 | (999) | 0 |
Interest (expense) income: | ||||
Total Interest (expense) income | 0 | 0 | 0 | 0 |
Income tax expense (benefit): | ||||
Total Income tax expense | (371) | 0 | (371) | 0 |
Capital expenditures: | ||||
Total Capital expenditures | 1,259 | 0 | 1,259 | 0 |
HCN Segment | Operating Segments | ||||
Revenue: | ||||
Total Revenue | 11,240 | 9,541 | 33,506 | 25,682 |
Depreciation and amortization: | ||||
Total Depreciation and amortization | 195 | 159 | 524 | 473 |
Income (loss) from operations before interest and income taxes: | ||||
Total income from operations before interest and income taxes | 448 | 466 | 1,348 | (455) |
Interest (expense) income: | ||||
Total Interest (expense) income | 2 | 2 | 6 | 16 |
Income tax expense (benefit): | ||||
Total Income tax expense | 250 | 130 | 494 | (116) |
Capital expenditures: | ||||
Total Capital expenditures | $ 367 | $ 7 | $ 1,581 | $ 156 |
Segment Information - Summary_2
Segment Information - Summary of Consolidated Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Total Assets | $ 723,187 | $ 371,018 |
Corporate and Other | ||
Assets: | ||
Total Assets | 109,262 | 210,083 |
APUS Segment | Operating Segments | ||
Assets: | ||
Total Assets | 128,331 | 112,461 |
RU Segment | Operating Segments | ||
Assets: | ||
Total Assets | 432,767 | 0 |
HCN Segment | Operating Segments | ||
Assets: | ||
Total Assets | $ 52,827 | $ 48,474 |
Concentration (Details)
Concentration (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
APUS Segment | ||||
Concentration Risk [Line Items] | ||||
Percentage of students served in military on active duty at time of initial enrollment (in percent) | 63.00% | 63.00% | ||
Customer Concentration Risk | Revenue | APUS Segment | DoD tuition assistance programs | ||||
Concentration Risk [Line Items] | ||||
Percentage of segment revenue (in percent) | 43.00% | 41.00% | 44.00% | 42.00% |
Customer Concentration Risk | Revenue | APUS Segment | VA education benefits | ||||
Concentration Risk [Line Items] | ||||
Percentage of segment revenue (in percent) | 22.00% | 22.00% | 22.00% | 22.00% |
Customer Concentration Risk | Revenue | APUS Segment | Title IV programs | ||||
Concentration Risk [Line Items] | ||||
Percentage of segment revenue (in percent) | 21.00% | 22.00% | 20.00% | 22.00% |
Customer Concentration Risk | Revenue | APUS Segment | Cash and other sources | ||||
Concentration Risk [Line Items] | ||||
Percentage of segment revenue (in percent) | 14.00% | 15.00% | 14.00% | 14.00% |
Customer Concentration Risk | Revenue | HCN Segment | VA education benefits | ||||
Concentration Risk [Line Items] | ||||
Percentage of segment revenue (in percent) | 1.00% | 3.00% | 1.00% | 2.00% |
Customer Concentration Risk | Revenue | HCN Segment | Title IV programs | ||||
Concentration Risk [Line Items] | ||||
Percentage of segment revenue (in percent) | 81.00% | 83.00% | 81.00% | 82.00% |
Customer Concentration Risk | Revenue | HCN Segment | Cash and other sources | ||||
Concentration Risk [Line Items] | ||||
Percentage of segment revenue (in percent) | 18.00% | 14.00% | 18.00% | 16.00% |
Customer Concentration Risk | Revenue | RU Segment | VA education benefits | ||||
Concentration Risk [Line Items] | ||||
Percentage of segment revenue (in percent) | 2.00% | |||
Customer Concentration Risk | Revenue | RU Segment | Title IV programs | ||||
Concentration Risk [Line Items] | ||||
Percentage of segment revenue (in percent) | 76.00% | |||
Customer Concentration Risk | Revenue | RU Segment | Cash and other sources | ||||
Concentration Risk [Line Items] | ||||
Percentage of segment revenue (in percent) | 22.00% |