Earnings call transcript: American Public Education Q4 2024 misses EPS forecast

American Public Education Inc. (APEI) reported its fourth-quarter 2024 earnings, revealing a mixed financial performance. The company posted earnings per share (EPS) of $0.63, falling short of the forecasted $0.69. Despite this, revenue exceeded expectations at $164.1 million, surpassing the anticipated $161.78 million. Following the announcement, APEI’s stock closed down 5.08% at $19.25 during after-hours trading. According to InvestingPro analysis, APEI currently appears undervalued, with a "GOOD" overall financial health score of 2.66 out of 5.

Key Takeaways

• APEI’s Q4 2024 EPS was below expectations, impacting investor sentiment.
• Revenue growth was strong, with a 7.4% year-over-year increase.
• The company plans to consolidate its educational institutions by Q4 2025.
• Enrollment growth was robust, particularly in the nursing and military education sectors.
• APEI forecasts a positive revenue outlook for 2025, targeting $650-$660 million.

Company Performance

APEI demonstrated solid revenue growth in Q4 2024, achieving a 7.4% increase from the previous year. The company’s strategic focus on consolidating its educational institutions and optimizing operations is expected to enhance future performance. Enrollment figures showed significant growth, particularly in the nursing and military education segments, with Rasmussen University and Hondros College of Nursing leading the charge.

Financial Highlights

• Revenue: $164.1 million, up 7.4% year-over-year
• EPS: $0.63, below the forecast of $0.69
• Full Year 2024 Revenue: $624 million
• Adjusted EBITDA for Q4: $31.4 million, up 22.2% year-over-year
• Cash and Cash Equivalents: $158.9 million, an increase of $14.6 million from 2023

Earnings vs. Forecast

APEI’s EPS of $0.63 missed the forecast by approximately 8.7%, marking a deviation from expectations. However, the revenue of $164.1 million exceeded projections by 1.4%, indicating strong sales performance despite the earnings miss.

Market Reaction

Following the earnings release, APEI’s stock declined by 5.08%, closing at $19.25 in after-hours trading. This movement reflects investor concerns over the EPS miss, despite the positive revenue results. The stock remains within its 52-week range, with a low of $11.43 and a high of $23.84. Notable momentum metrics from InvestingPro show a strong 36.75% price return over the past six months, trading at a P/E ratio of 33.8. Get access to the comprehensive Pro Research Report, part of the analysis available for 1,400+ US stocks, for detailed insights into APEI’s valuation and growth potential.

Outlook & Guidance

APEI has set a revenue guidance of $650-$660 million for 2025, with an adjusted EBITDA target of $75-$85 million. The company plans to redeem preferred shares by Q2 2025 and expects capital expenditures between $18-$22 million. The consolidation of its educational institutions is anticipated to streamline operations and drive future growth. InvestingPro analysis indicates positive net income growth expectations for the year ahead, supported by a strong gross profit margin of 51.93% and a five-year revenue CAGR of 15%.

Executive Commentary

CEO Angela Seldin expressed confidence in the company’s direction, stating, "We are very pleased with our results in both the fourth quarter and full year twenty twenty four and remain enthusiastic about our path forward." She emphasized 2025 as a "year of simplification" for APEI, focusing on creating value for service-minded students and their families.

Risks and Challenges

• Potential integration challenges with the planned consolidation of institutions.
• Market competition in the online education sector.
• Economic factors affecting enrollment and education spending.
• Regulatory changes impacting the education industry.
• Dependence on military and veteran education funding.

Q&A

During the earnings call, analysts inquired about the timing of the new marketing portal and its impact on Q1 enrollments. The company addressed investments in advertising and student support, highlighting potential synergies from the institutional consolidation.

Full transcript - American Public Education Inc (APEI) Q4 2024:

Calvin, Conference Operator: Good afternoon and thank you for standing by. My name is Calvin and I will be your conference operator today. At this time, I would like to welcome everyone to the American Public Education Incorporated Reports Fourth Quarter twenty twenty four Results Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session.

Thank you. I would now like to turn the call over to Brian Preneveau, Investor Relations. Please go ahead.

Brian Preneveau, Investor Relations, American Public Education: Thank you, and good afternoon, everyone. Welcome to American Public Education’s conference call to discuss fourth quarter and full year twenty twenty four results. Joining me on the call today are Angela Seldin, President and Chief Executive Officer Rick Sunderland, Executive Vice President and Chief Financial Officer and Steve Summers, Senior Vice President and Chief Strategy and Corporate Development Officer. Materials for the call today are available in the Events and Presentations section of APEI’s website. Statements made during this conference call and any accompanying presentation regarding APEI and its subsidiaries that are not historical facts may be forward looking statements based on current expectations, assumptions, estimates and projections.

Forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, such as those identified in our Form 10 K under the heading Risk Factors and those related to potential impacts from government shutdowns or changing federal government policies and practices, including impacts on revenue or the timing of receivables. Forward looking statements may sometimes be identified by words like anticipate, believe, seek, could, estimate, expect, can, may, plan, potentially, project, should, will, would and similar or opposite words. Forward looking statements include, without limitation, statements regarding expectations for registration and enrollments, revenue, earnings and adjusted EBITDA and other earnings guidance, repositioning Rasmussen University for growth, combination of our institutions, financing and spending plans, future governmental and regulatory actions and our response to those actions, changing market demands and our ability to satisfy such demands, and other company initiatives, including with respect to future competition and demand, cost savings efforts. This presentation contains references to non GAAP financial information. A reconciliation between the non GAAP financial measures we use and the most directly comparable GAAP measures is located in the appendix to today’s presentation in the earnings release.

Management believes that the presentation of non GAAP financial information provides useful supplemental information to investors regarding its results of operations and should be only considered in addition to and not as a substitute for or superior to any measure of financial performance prepared in accordance with GAAP. Now, I’d like to turn the call over to APEI’s President and CEO, Angela Seldin. Angela, please go ahead.

Angela Seldin, President and Chief Executive Officer, American Public Education: Thank you, Brian. Good afternoon and thank you for joining American Public Education’s fourth quarter and full year twenty twenty four earnings call. We are very pleased with our results in both the fourth quarter and full year twenty twenty four and remain enthusiastic about our path forward. We have four areas to highlight during today’s call. First, APEI outperformed fourth quarter twenty twenty four financial guidance.

In the fourth quarter, we exceeded guidance for revenue, net income and adjusted EBITDA. Importantly, as we signaled at the beginning of the year, Rasmussen in the fourth quarter delivered both positive EBITDA and positive enrollment growth. Next, APEI outperformed full year 2024 financial guidance. We delivered on the full year guidance that we first established at the beginning of ’twenty four and then raised. Revenue of $624,000,000 exceeded the top end of the original guidance and met the midpoint of our raised revised guidance.

Adjusted EBITDA of $72,300,000 exceeded both the high end of our original and revised guidance range, which was $65,000,000 Capital expenditures were in line. Third, twenty twenty five will be a year of simplification at APEI. In January, we announced a plan to combine our three degree granting institutions into a single consolidated institution. This should provide simpler operations and an opportunity to find both revenue and cost synergies over the long term. Additionally, we intend to redeem our preferred shares prior to the end of the second quarter which would be accretive to net income and earnings per share.

We have closed some underperforming campuses, terminated expensive leases and contracts and have two corporate buildings held for sale. These steps should simplify the balance sheet and cost structure resulting in significant earnings growth in 2025. Finally, 2025 will be another year of revenue and adjusted EBITDA growth. We’re initiating 2025 guidance with revenue of $650,000,000 to $660,000,000 and adjusted EBITDA of $75,000,000 to $85,000,000 Rick Sunderland, APEI’s CFO, will provide more details on guidance in his remarks. Now I’ll provide more detail about the fourth quarter and full year 2024 results starting first with APEI’s nursing and healthcare institution.

Much of the work over the past two years at Rasmussen has been focused on strengthening its foundation for long term growth. We have made real progress and in particular are pleased with the previously guided financial results in the second half of twenty twenty four. 3Q ’20 ’20 ’4 was the first quarter in which Rasmussen experienced positive year over year enrollment growth since API’s acquisition. In 4Q twenty twenty four, the trend continued with a 4% year over year enrollment increase. In the first quarter of twenty twenty five, this momentum has accelerated with a 7% increase in enrollment compared to 1Q twenty twenty four, including positive enrollment in our on ground nursing and healthcare programs.

Beyond enrollments, we signaled that Rasmussen would be adjusted EBITDA positive in the second half of twenty twenty four and we achieved that goal with $6,400,000 of adjusted EBITDA in 4Q twenty twenty four and positive $3,100,000 for the second half of twenty twenty four. Of particular note is that this growth has been achieved even with the suspending of enrollments in two Wisconsin campuses and the Bloomington ADN program. These results support our belief that there remains significant upside to Rasmussen growth and profitability. Additionally, we continue to prioritize student outcomes and NCLEX pass rates that support real career opportunities and a positive ROI on students’ educational investment. In 2024, ’20 ’3 of our 25 nursing reporting entities met the state NCLEX pass rate thresholds.

At Hondros, as previously reported, 4Q ’twenty four enrollment was very strong with 19% growth as compared to 4Q ’twenty three. 1Q ’twenty ’5 enrollment continues a positive trend, increasing 9.6% year over year to 3,600 students. This marks the twentieth consecutive quarter that Hondros has posted year over year enrollment growth. We’re building on that momentum of 2024 into 2025 at both Rasmuson and Hondros with 1Q25 reported student enrollments as actuals because these quarterly starts have already begun. We believe our nursing schools can continue to be a significant driver of growth and margin expansion going forward.

The higher fixed cost base of these businesses allows for increased EBITDA flow through as we fill existing spaces in classes and on campuses. Further, the market dynamics present for new nurses remains as we as when we acquired Rasmuson in 2021. With an annual shortage of approximately 200,000 nurses each year and with Hondros and Rasmussen currently educating over 9,000 students per year, there remains significant runway for further growth and expansion. Now I’d like to turn our attention to APEI’s online university educating our nation’s military, veterans and their families currently called APUS. In 4Q twenty twenty four, overall net course registrations increased 7% year over year.

Revenue at APUS was almost 4% higher due primarily to the overall growth in registrations. EBITDA margins in the fourth quarter were 34.5 at APUS, which was down slightly as compared to 35% in 4Q ’twenty three. As APUS invested in various initiatives in the back half of ’twenty four aiming to modernize and strengthen its online curriculum, IT infrastructure and to better optimize its marketing spend while aligning student support headcount to growing segments including non military and military families. For the full year 2024, APUS total net course registrations increased 3% as compared to 2023. We’re pleased with the return to strong registration growth in the fourth quarter and expect continued registration growth in the low to mid single digits in 2025.

’20 ’20 ’5 will be a year of simplification for APEI. As announced in January of this year, we are planning to combine APUS, Rasmussen and Hondros into one consolidated institution, American Public University System, which we are now referring to as the system. We are targeting the fourth quarter of twenty twenty five for the combination to be completed, assuming all regulatory and accreditation steps have been satisfied. The system will have a healthcare division which will include Rasmussen University and Hondros College of Nursing. Combining and expanding our nursing campus footprint will allow us to strengthen our ability to address the growing demand for nursing and other clinical roles in the healthcare ecosystem.

We’re very excited that Mark Arnold, Rasmussen’s new President will be leading that division. The system will also have a military and veteran division called APUS Global. We’re also very pleased that Nuno Fernandez will continue to lead that division. We have upcoming process steps with our creditor, Higher Learning Commission and the U. S.

Department of Education. We will provide updates in future earnings calls as we complete key milestones. Overall, we’re very proud of our results and achievements in 2024. We believe in our future growth and opportunities in 2025 and beyond. Each of our education units was purpose built to deliver accessible and affordable higher education and training across a diverse range of subjects.

By aiming to educate service minded students and their families and by offering classes, certificates and degrees in fields that will continue to have high demand, APEI enables students to experience a valuable lifelong return on their educational investment. Our mission reflects those priorities to power purpose, potential and prosperity for those in service to others. We’re proud of the foundation for growth we have built and we remain focused on setting clear, achievable goals for 2025 and beyond. With that, I will now turn the call over to APEI’s Chief Financial Officer, Rick Sunderland.

Rick Sunderland, Executive Vice President and Chief Financial Officer, American Public Education: Thank you, Angie. Total revenue in the fourth quarter was $164,100,000 up $11,300,000 or 7.4% from the prior year period. Fourth quarter revenue growth was driven by increased revenue at all of our education units. Hondros in particular delivered a 20% increase in revenue compared to the fourth quarter of twenty twenty three. Fourth quarter revenue exceeded the top end of our guidance range.

Total cost of expenses in the fourth quarter increased $5,700,000 or 4.2% as compared to the fourth quarter of twenty twenty three. The increase was primarily driven by increases in employee compensation costs and bad debt expense, partially offset by a decrease in advertising and depreciation and amortization expenses. In the fourth quarter, diluted net income per common share was $0.63 as compared to $0.64 in the prior year period. Fourth quarter adjusted EBITDA was $31,400,000 which is above the top end of the guidance range and represented an adjusted EBITDA margin of 19.1% as compared to 16.8% in the prior year period. Fourth quarter adjusted EBITDA represented a $5,700,000 or 22.2% increase as compared to the prior year.

At APUS, fourth quarter revenue increased to $82,400,000 an increase of 3.8% as compared to the prior year period. Fourth quarter net course registrations increased 7%, which was above the top end of our guidance range. The increase in fourth quarter net course registrations was driven by both military and military affiliated net course registrations. For the quarter, AQS EBITDA was 28,400,000 and EBITDA margin was 34.5% as compared to 35% in the prior year period. At Rasmussen, fourth quarter revenue was $57,500,000 an increase of 9.3% as compared to the prior year.

In the fourth quarter, online enrollment increased 9% as compared to the prior year and total enrollment increased 4% to approximately 14,600 students. On ground enrollment continues to stabilize with first quarter twenty twenty five on ground enrollment increasing 3.2% as compared to the prior year period. In the fourth quarter, Rasmussen delivered positive EBITDA of $5,500,000 as compared to EBITDA of $600,000 in the prior year. As previously discussed, Rasmussen reported positive EBITDA of $3,100,000 in the second quarter of in the second half of twenty twenty four, delivering on our promise of positive 2H twenty twenty four EBITDA. At Hondros, fourth quarter revenue was up 20% to $18,900,000 as compared to the prior year period due to continued enrollment growth.

For the quarter, Hondros enrollment Hondros total enrollment increased 19.3% to approximately 3,700 students. At Hondros, EBITDA was $1,300,000 in the fourth quarter of twenty twenty four compared to $1,200,000 in the prior year. Revenue at graduate school included in corporate and other was $5,400,000 as compared to $5,000,000 in the prior year period. For the quarter, graduate school EBITDA was a loss of $700,000 compared to an EBITDA loss of $1,100,000 in the prior year period. At 12/31/2024, total cash, cash equivalents and restricted cash was $158,900,000 dollars an increase of $14,600,000 from year end 2023.

For the year ended 12/31/2024, cash flow from operations was $48,900,000 compared to $45,500,000 in the prior year. CapEx in 2024 was $21,100,000 and free cash flow for the year defined as adjusted EBITDA less CapEx was $51,200,000 compared to $45,700,000 in 2023. Principal on API’s term loan at December 31 was $93,000,000 with unrestricted cash of $132,000,000 API continues to be net cash positive. Additionally, there are no borrowings under API’s twenty million dollars revolving credit facility, which remains fully available. I’m going to turn now to our outlook, which covers forward looking statements subject to the various risks noted.

For the first quarter twenty twenty five, APUS total net course registrations are expected to be between 100,500 to 102,000 registrations, representing a 1.5% to 3% increase when compared to last year. The first quarter guidance is negatively impacted by the scheduled maintenance of the Army and Air Force TA portals that extended beyond its planned downtime. The outage lasted approximately two weeks resulting in an overlap with the March session enrollment period. At Rasmussen and Hondros, first quarter student enrollments are actual because of the quarterly start to these schools. At Rasmussen, first quarter total online enrollment increased 11.1 to approximately 8,000 students, while total on ground enrollment increased 3.2% to approximately 6,500 students for an aggregate enrollment of approximately 14,500 students.

This represents a 7% increase when compared to the first quarter of twenty twenty four and is our third consecutive quarter of overall positive year over year enrollment growth at Rasmussen. At Hondros, first quarter total student enrollment increased 9.6% year over year to approximately 3,600 students. In the first quarter of twenty twenty five, consolidated revenue is expected to be between $161,000,000 and $163,000,000 The company expects net income available to common shareholders to be between $1,700,000 and $3,100,000 or between income of $0.09 and $0.17 per diluted share. Adjusted EBITDA is expected to be between $13,500,000 and $15,500,000 in the first quarter of twenty twenty five. We are providing full year guidance with anticipated consolidated full year 2025 revenue to be between $650,000,000 and $660,000,000 dollars We expect full year adjusted EBITDA to be between $75,000,000 and $85,000,000 and net income available to common shareholders to be between $19,000,000 and $26,000,000 dollars Our net income guidance assumes the redemption of our preferred equity prior to the end of the second quarter, which will reduce preferred dividend payments by approximately $3,000,000 in 2025 if redeemed mid year and $6,000,000 annually.

We anticipate 2025 capital expenditures to be between $18,000,000 and $22,000,000 This translates to free cash flow expectations for the full year defined as adjusted EBITDA less CapEx to be between $53,000,000 and $67,000,000 With that, operator, please open the line for questions.

Calvin, Conference Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. As we enter into Q and A session, we ask that you please limit your input to one question and one follow-up. At this time, I would like to remind everyone to ask a question, press the star button followed by the number one on your Your first question comes from the line of Stephen Sheldon. Please go ahead.

Stephen Sheldon, Analyst: Hey, thanks and nice work here. So within APUS, great to see the strong acceleration in 4Q. I think you noticed some portal timing headwinds to enrollments in the first quarter. I guess how big of an impact was that? And is that kind of why enrollment growth is going to slow in 1Q?

And then I guess how should we think about enrollment trends potentially over the rest of the year?

Rick Sunderland, Executive Vice President and Chief Financial Officer, American Public Education: Right. So we don’t have the exact impact because we’re still late registering students. We’ve built in the anticipated impact, which is in the mid single digits percentage wise into the first quarter guidance. And then of course, Matt, including in the first quarter guidance means it’s included in the full year guidance. But the good news is while the outage extended longer than was expected, it was expected to be somewhere around a week and it lasted slightly over two weeks and it did to that extent impact first quarter guidance.

It’s now behind us. The portal is working. We are continuing to late register students that would have otherwise registered during that outage period. And because of the full functioning of the portal, students that want to register for future sessions April and beyond are able to do so.

Stephen Sheldon, Analyst: Got it. That’s helpful. And then great to see you turn the corner on profit in Rasmuson this quarter. So I’m just curious, just generally how long are you thinking that it might take for Rasmussen to get back to a double digit adjusted EBITDA margin profile? Is that something that we’re expecting kind of consistent improvement as we think about the next couple of years and just generally when you think you could get back to that stronger market profile?

Rick Sunderland, Executive Vice President and Chief Financial Officer, American Public Education: Hey, Stephen, it’s Rick. I said Matt and Angie corrected me by writing it on a piece of paper. My apology, go ahead. I just want to take that, Angie, or give that to you.

Angela Seldin, President and Chief Executive Officer, American Public Education: Steven, how are you? So we certainly aren’t giving multiyear guidance presently, but we are really pleased with the acceleration in enrollment momentum we’re seeing at Rasmuson both and it includes both our online unit as well as our campus based unit. So we believe that we will see a significant flow through of that incremental revenue to the bottom line and we’re very excited about what we’re seeing at Rasmuson right now.

Stephen Sheldon, Analyst: Good to hear. And then just one more quick one if I could. As we think about the profit guide for the first quarter, you’re expecting revenue to grow kind of mid single digits, you’re expecting adjusted EBITDA to be down a decent amount year over year. Can you talk about what’s driving that EBITDA kind of contraction year over year and whether there are timing or one off issues we should be thinking about?

Rick Sunderland, Executive Vice President and Chief Financial Officer, American Public Education: You want me to take that? Stephen, it’s Rick. So we look at first quarter of twenty twenty five compared to first quarter of twenty twenty four. We’re investing more in advertising as we’ve really kind of hit the accelerator on the impact and effectiveness of advertising. So advertising is up about $2,100,000 We do have higher labor costs in Q1 this year at APUS than we did Q1 of last year.

We invested as the marketing function continues to deliver good and even better results. We invested in student facing staff, admissions, advising, student support to really care for the needs of the prospects and new students that were coming in. So it’s advertising and it’s labor that’s driving that year over year change.

Stephen Sheldon, Analyst: Makes sense. Thank you for the color and nice work.

Angela Seldin, President and Chief Executive Officer, American Public Education: Thank you very much.

Calvin, Conference Operator: Your next question comes from the line of Jasper Bibb of Truist Securities. Please go ahead. Hey, good evening, everyone. I wanted

Jasper Bibb, Analyst, Truist Securities: to ask about the portfolio consolidation in the one institution. I where it’s going to close in the fourth quarter, but that’s the plan. But I guess as of now, is there any way you could help frame for us if you’re expecting G and A savings associated with that, how large they might be and the potential timing in 2026 or beyond of when we could expect to see that? Thank you.

Angela Seldin, President and Chief Executive Officer, American Public Education: Thanks for the question, Jasper. Certainly, the we anticipate both revenue synergies and I’ll talk about why that is as well as cost synergies. And our belief is that we’ll close in the fourth quarter of twenty twenty five. That we have some important process steps coming up in the next few weeks that will finalize that timeline for us. I want to talk about the revenue synergies first because one of the things we’re quite excited about is offering to our Hondros students who have only access to pre licensure nursing programs today, the full ladder of post licensure curriculum that exists at Rasmussen.

Also, we believe that the online modality for our students at both Rasmuson and APUS are different in that one offers a monthly start, one offers a quarterly start. And we believe that students who may find one of those institutions and may not like that start pattern, we can offer them the alternative of our sister institution at the other institution. So we believe there’s a lot of revenue synergies we’re going to see as a result of this combination. As it relates to costs, we certainly see in the long term an streamline some of the services that we have that overlap between the institutions today. But I think in the short term, the primary areas of cost synergies will be a few leadership positions at Hondros and then importantly we will be aligning our accreditation and other academic teams to the system level.

So but by and large, this is not a cost reduction. That is not what this is intended to be. It’s really about building these platforms to allow us to accelerate the growth in our both our military business as well as in our nursing and healthcare

Calvin, Conference Operator: business. Thanks for that.

Jasper Bibb, Analyst, Truist Securities: And then the online growth for Rasmuson has been really strong. It looks like you’re looking for double digits in the first quarter. Could you frame some of the drivers of that growth and then also what you’re seeing from a marketing yield perspective that’s allowing you to generate these new starts?

Angela Seldin, President and Chief Executive Officer, American Public Education: Yes, I’ll start and then Rick, please jump in. So one of the things that we’re particularly pleased with is the optimization of the marketing spend. We’ve turned our attention to organic lead generation as opposed to paid leads. And as those leads have increased substantially, the flow through on those leads has been very material. And so we actually saw a reduction in marketing spend at Rasmussen last year and an increase in conversion rate.

So that has had a substantial positive effect in particular on our online enrollments, but certainly also on our campus based enrollments as well. Can you remind me what the second part of your question was? I don’t remember what you said.

Jasper Bibb, Analyst, Truist Securities: Drivers of enrollment strength and marketing yield.

Angela Seldin, President and Chief Executive Officer, American Public Education: Okay. Yes. And so what we are also finding from a marketing perspective is that we turned our attention to what I would call hyper local marketing for our campuses and that has had a significant positive effect on our campus based enrollment growth. We have returned to some fairly traditional methods, radio and some other very local market activities. And for the student demographic that we educate, it has been highly effective.

And so we’re really treating those two businesses or two business segments as part of Rasmussen with different marketing strategies and that separation of marketing strategies is really paying off for us. I

Calvin, Conference Operator: think for me, I know

Jasper Bibb, Analyst, Truist Securities: there’s typically some seasonality in the Rasmuson margin, but $5,500,000 in 4Q EBITDA is a decent margin. Looking ahead, I guess, just hoping you could frame for us what you expect Rasmuson contribution is in your 25 EBITDA guidance and how you expect that to look on

Stephen Sheldon, Analyst: a quarterly basis for the year?

Angela Seldin, President and Chief Executive Officer, American Public Education: As you know, Jasper, we don’t break out those margin contributions by education unit presently. But as I said before, the revenue improvements that we’re seeing at Rasmuson and certainly on a year over year basis are going to have a substantial flow through to the bottom line from an EBITDA and margin improvement in all of 2025.

Jasper Bibb, Analyst, Truist Securities: Okay. Thanks so much.

Angela Seldin, President and Chief Executive Officer, American Public Education: Thank you.

Calvin, Conference Operator: This concludes our Q and A session. With that, I will now turn the call back over to Angie for closing remarks. Please go ahead.

Angela Seldin, President and Chief Executive Officer, American Public Education: Thank you all for joining American Public Education’s fourth quarter and full year twenty twenty four earnings and guidance call. We appreciate all that you do for our students and for APEI and look forward to our next call with you coming up shortly. Thank you very much.

Calvin, Conference Operator: Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time. Have a wonderful day.

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