American Public Education Inc. Q4 2012 Earnings Conference Call Transcript - Thomson StreetEvents

American Public Education Inc. Q4 2012 Earnings Conference Call Transcript

23 pages (14081 words) — Published Feb 28, 2013
Price $54.00  |  Buy this Report Now

About This Report

  
Abstract:

Edited Transcript of APEI earnings conference call or presentation 28-Feb-13 10:00pm GMT

  
Brief Excerpt:

...Operator Good day, ladies and gentlemen, and welcome to the fourth-quarter and full-year 2012 results conference call. My name is Tahitia, and I'll be your operator for today. At this time, all participants are listen-only mode. Later we will conduct a question-and-answer session. (Operator Instructions). As a reminder, this conference is being recorded for replay purposes. I would now like to turn the conference over to your host for today, Mr. Chris Symanoskie, Vice President, Investor Relations. Please proceed. Chris Symanoskie ...

  
Report Type:

Transcript

Source:
Company:
Ticker
Time
10:00pm GMT
Format:
PDF Adobe Acrobat
Buy Now

The following is excerpted from the question-and-answer section of the transcript.

(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)

Question: Nick Nikitas - Robert W. Baird - Analyst : Hi, this is Nick Nikitas for Jeff Meuler. Just a quick question on looking at your 1Q 2013 starts guidance. It seems to potentially imply underlying sequential deterioration, if you exclude the FSA students. Is that due to maybe a higher balance in 1Q 2012 than previously expected? Or can you talk about the leading indicators, if you have seen any changes in trends? companies.


Question: Nick Nikitas - Robert W. Baird - Analyst : Okay. And then just looking for margin expectations for 1Q, as well as 2013 overall. What kind of initiatives have you already started to realize the benefits from? What do you expect to be incremental over the remaining part of the year? And then, looking at the ePress initiative, do you potentially see upside to your previous $8 million run rate? Or can you just talk more about that?


Question: Nick Nikitas - Robert W. Baird - Analyst : Okay, great. Thanks. companies.


Question: Gary Bisbee - Barclays Capital - Analyst : Hi, guys. Good afternoon. I wanted to probe the commentary around the marketing shift a little bit. I guess what I'm wondering is, was the traditional media driving students you believe -- other than the abusers -- that were much lower quality? I guess I wonder why you wouldn't keep that going for a bit longer, while you're ramping up these new avenues and drive growth, if you could do that?


Question: Gary Bisbee - Barclays Capital - Analyst : And then on the theme of persistence, on a blended basis through the whole student body, can you give us a sense of how that might look versus a year ago? And I guess really what I'm getting at is, despite weak starts for the last few quarters, you've continued to have very strong net course registration growth. But would it be reasonable to think that that really tails off if you can't return to more robust new student growth, say, after this next quarter you've guided to?


Question: Gary Bisbee - Barclays Capital - Analyst : Great. And then just one last quick one. It looks like you more than doubled the number of community colleges agreements, if I had the number right last quarter, in the last three months. Can you give us a sense, what would a typical agreement look like? Thanks a lot.


Question: Gary Bisbee - Barclays Capital - Analyst : Great. Thank you.


Question: Corey Greendale - First Analysis Securities - Analyst : Good afternoon. I wanted to go back to the Q1 guidance. I think you -- I understand there's still some of the stipend-chaser students into year ago comp, but I think that was starting to diminish. And just on the surface of it, the comp gets a lot easier in Q1. So I just wanted to dig into that a little further. How much of the fact that you think you are still negative on new student registrations is internally driven, in terms of -- have you already started to cut back on advertising as of January 1?


Question: Corey Greendale - First Analysis Securities - Analyst : And can you delve a little bit into the underlying trends in each of your end-market segments? What are you seeing in new registrations from active duty, VA, and Title IV? companies.


Question: Corey Greendale - First Analysis Securities - Analyst : Did you get the color in terms of what you're seeing in the new registrations or just total?


Question: Corey Greendale - First Analysis Securities - Analyst : So, it's not -- what I'm getting at is --


Question: Corey Greendale - First Analysis Securities - Analyst : What I'm getting at is, there's a comment in the 10-K that says -- I think I'm paraphrasing -- that you've had more difficulty attracting students that will perform well over the long term. And I'm just trying to get a sense that that is a phenomenon that is primarily in the Title IV market.


Question: Corey Greendale - First Analysis Securities - Analyst : Okay. And can you give us your current thinking on what the effect of sequestration could be on TA?


Question: Corey Greendale - First Analysis Securities - Analyst : Okay, thanks. I'll turn it over.


Question: Adrienne Colby - Deutsche Bank - Analyst : Hi, thanks for taking my question. I was wondering, you had mentioned last call that you expected some disruption to the new registration number from Sandy. I think you talked something around 650 students. I'm just wondering how that played out?


Question: Adrienne Colby - Deutsche Bank - Analyst : Okay. And then going back to a question that was asked earlier, when we look at first-quarter guidance for new registrations and look at the first quarter of 2012, I think you have been telling us in the past that for the third and fourth quarter of 2011, that the maybe 20% of that growth was actually from some of these stipend chasers. So I'm just trying to understand, it seems like that certainly tailed down. But when we're trying to compare what you've given us for guidance versus what we actually saw in the first quarter of this year, just wondering again, is it something around 10% of that growth, you think is stipend chasers? Or is it less, or more? It just helps us to get a better sense of what the underlying growth is.


Question: Adrienne Colby - Deutsche Bank - Analyst : Okay. Now that you have the CCNE accreditation for your RN to BSN program, is it too early to start talking about the change in enrollment there? Or can you at least talk about maybe the trends in inquiries, if you are seeing a ramp there?


Question: Adrienne Colby - Deutsche Bank - Analyst : Okay. If I can just sneak in one last one. With the military and veteran students now about half of your population, I'm just wondering as we look into 2013 if there some changes we can expect in terms of the seasonality of the business, now that you have more than civilian students?


Question: Adrienne Colby - Deutsche Bank - Analyst : Thank you.


Question: Jeff Volshteyn - JPMorgan - Analyst : Thank you for taking my question. Could you give us a little more color on the conversations with Walmart about the program they've talked about for a couple of years? Where do they stand on that? And then as well as the -- how is the New Horizons relationship is going?


Question: Jeff Volshteyn - JPMorgan - Analyst : That's helpful. When you look at the 90/10 ratio for the 2012, what is it? And if you could give us maybe some comments on where do the conversations stand about shifting military funding into the other side?


Question: Jeff Volshteyn - JPMorgan - Analyst : Thank you. That's very helpful.


Question: Jerry Herman - Stifel Nicolaus - Analyst : Stifel. Hi, guys. Wally, I was hoping you'd give us more visibility on new registrations, perhaps beyond the first quarter. The comparison [fees] at that point, the effect of the course takers being part of that. You referenced the marketing shift maybe having some impact on new registration. And then also, you mentioned persistence. Can you talk a little bit about whether you think those negative trends that you're showing in the first quarter will persist for the rest of the year? Should we think about it that way?


Question: Jerry Herman - Stifel Nicolaus - Analyst : I can appreciate you guys not commenting specifically on Walmart, but could you give us an idea of how much of volume currently comes from all corporate, organizational, and community college relationships?


Question: Jerry Herman - Stifel Nicolaus - Analyst : Great. Thanks, guys. I'll turn it over.


Question: Trace Urdan - Wells Fargo Securities - Analyst : Thank you. I'm going to come a little bit out of left field here, but please bear with me. The dire talk of sequestration has, by some accounts, up to 200,000 members of the active-duty military being put on -- being either terminated or put on furlough. Does that represent a potential opportunity for an increase in enrollment, as those folks transition into civilian life and take advantage of the GI Bill? And even if you disagree with that thesis -- bear with me -- and just tell me, from your perspective, but when you see a member of the military make that transition, do you have a sense of how long that can take, when someone leaves the military and then decides to enroll in school and take advantage of the GI Bill?


Question: Trace Urdan - Wells Fargo Securities - Analyst : Okay. And then, Wally, you had talked about potentially introducing a MOOC, and experimenting with that phenomenon. Have you advanced that idea any internally?


Question: Trace Urdan - Wells Fargo Securities - Analyst : Okay. And then, last question, have you looked at -- on that same topic, have you guys done any investigation into whether or not you'll accept credit from some of the MOOCs -- the more popular MOOCs that are out there right now?


Question: Trace Urdan - Wells Fargo Securities - Analyst : Okay. Thank you.


Question: Peter Appert - Piper Jaffray & Co - Analyst : Thanks. So, Harry, you talked about some of the margin drivers and the potential for further margin upside in 2013. I'm just thinking, over the next couple of years, do you think all these factors could get you back towards the margin levels we saw in the 2009, 2010 timeframe, when you were up in the mid-20% level? Is that realistic? companies.


Question: Peter Appert - Piper Jaffray & Co - Analyst : I guess part of the question is just conceptually, whether -- from the strategic and political perspective -- whether there might be an upper limit to margin you don't want to get beyond?


Question: Peter Appert - Piper Jaffray & Co - Analyst : Okay. How about, last thing on the tech fee rights. So you roll that through another few quarters. Any thoughts in terms of expanding the courses that that would apply to, or the people that that would apply to? Or any other thoughts in terms of further tweaking of the pricing over the next year or so?


Question: Peter Appert - Piper Jaffray & Co - Analyst : Harry, just to be clear, you don't charge the military. You do charge civilians.


Question: Peter Appert - Piper Jaffray & Co - Analyst : Okay. Military or civilian. (Multiple speakers)


Question: Peter Appert - Piper Jaffray & Co - Analyst : Got it. And then, on the graduate level, how does it work?


Question: Peter Appert - Piper Jaffray & Co - Analyst : Military and civilian?


Question: Peter Appert - Piper Jaffray & Co - Analyst : Okay, great. Thank you.


Question: Kevin Kesnieka - Citigroup - Analyst : Hi, guys. [Kevin Kesnieka] filling in for James Samford. I'll keep it really quick. I know the call is getting towards its end. Just coming back to the tech fee. Now, that you said it was like a 3% benefit, I think, in 2013. Was that baked into guidance, or was that just something that would be extra on top?


Question: Kevin Kesnieka - Citigroup - Analyst : Okay, great. That's helpful. And then also just the tech fee -- how have students been reacting to it? Have any balked at it? Or is it something that they expected?


Question: Kevin Kesnieka - Citigroup - Analyst : Okay. Well, that's a pretty clear answer. And just finally, you were talking about the pilot program that you -- I think you already launched it in March last year -- to help with the stipend chasers. Now, it's supposed to reduce delay payments and reduce loan limits on -- or loan limits to tuition and books. Do you think that's driving away actual, genuine students or hurting them? Because they could be borrowing for cost of living and things like that?


Question: Kevin Kesnieka - Citigroup - Analyst : Okay, great. That's all I got. Thank you.


Question: Corey Greendale - First Analysis Securities - Analyst : Hi, thanks. I'll make this quick. And I apologize if this seems repetitive, or if I'm being a little dense. But when we are writing our notes tonight, I think I have a pretty good sense of what we should say as to what is driving -- what drove the decline in new student registrations in Q4. I'm not sure I still have a great handle on what you're thinking is as to what's driving the decline in Q1. Is it just the general economic malaise that's hitting others in this space? Or how would you complete that thought?


Question: Corey Greendale - First Analysis Securities - Analyst : All right. Thank you for indulging the question.

Table Of Contents

American Public Education Inc. Q3 2013 Earnings Conference Call Transcript – 2013-11-05 – $54.00 – Edited Transcript of APEI earnings conference call or presentation 5-Nov-13 10:00pm GMT

American Public Education Announces Webcast to Discuss Recently Announced Plan to Acquire Hondros College, Nursing Programs Transcript – 2013-08-28 – $54.00 – Edited Transcript of APEI conference call or presentation 28-Aug-13 9:00pm GMT

American Public Education Inc. Q2 2013 Earnings Conference Call Transcript – 2013-08-08 – $54.00 – Edited Transcript of APEI earnings conference call or presentation 8-Aug-13 12:00pm GMT

American Public Education Inc. Q1 2013 Earnings Conference Call Transcript – 2013-05-09 – $54.00 – Edited Transcript of APEI earnings conference call or presentation 9-May-13 9:00pm GMT

American Public Education Inc. at Credit Suisse Global Services Conference Transcript – 2013-03-11 – $54.00 – Edited Transcript of APEI presentation 11-Mar-13 8:30pm GMT

American Public Education Inc. Q3 2012 Earnings Conference Call Transcript – 2012-11-08 – $54.00 – Edited Transcript of APEI earnings conference call or presentation 8-Nov-12 2:00pm GMT

American Public Education Inc Q2 2012 Earnings Conference Call Transcript – 2012-08-08 – $54.00 – Edited Transcript of APEI earnings conference call or presentation 8-Aug-12 1:00pm GMT

American Public Education Inc Q1 2012 Earnings Conference Call Transcript – 2012-05-10 – $54.00 – Edited Transcript of APEI earnings conference call or presentation 10-May-12 9:00pm GMT

American Public Education Inc. at Credit Suisse Global Services Conference Transcript – 2012-03-13 – $54.00 – Edited Transcript of APEI presentation 13-Mar-12 5:30pm GMT

American Public Education Inc. at Robert W Baird And Co Inc Business Solutions Conference Transcript – 2012-03-01 – $54.00 – Edited Transcript of APEI presentation 1-Mar-12 1:00pm GMT

More from Thomson StreetEvents

Thomson StreetEvents—Thomson StreetEvents is a leading provider of Web-based solutions for the investment community, offering services that transform the way companies communicate and meet disclosure requirements while assisting investors in managing and leveraging this information. Thomson StreetEvents service offers institutional investors a one-stop solution for managing corporate disclosure information by aggregating conference calls, webcasts, transcripts, call summaries, and other financial information into a time-saving, efficiency tool.
Purchase Thomson StreetEvents' Transcripts (verbatim reports) and Briefs (call summaries) of earnings, guidance, M&A and other corporate calls directly through Alacra. Discounted prices apply to reports produced over two weeks ago.

About the Author


Cite this Report

  
MLA:
Thomson StreetEvents. "American Public Education Inc. Q4 2012 Earnings Conference Call Transcript" Feb 28, 2013. Alacra Store. Nov 28, 2014. <http://www.alacrastore.com/thomson-streetevents-transcripts/Q4-2012-American-Public-Education-Inc-Earnings-Conference-Call-T4987618>
  
APA:
Thomson StreetEvents. (2013). American Public Education Inc. Q4 2012 Earnings Conference Call Transcript Feb 28, 2013. New York, NY: Alacra Store. Retrieved Nov 28, 2014 from <http://www.alacrastore.com/thomson-streetevents-transcripts/Q4-2012-American-Public-Education-Inc-Earnings-Conference-Call-T4987618>
  
$54.00
$  £  
Have a Question?

Any questions about the report you're considering? Our Customer Service Team can help! Or visit our FAQs.

More Research

Search all our Credit Research from one place.