8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

February 28, 2017

(Date of earliest event reported) 

 American Public Education, Inc.

(Exact Name of Registrant as Specified in its Charter)  

Delaware	001-33810	01-0724376
(State or other jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

111 W. Congress Street Charles Town, West Virginia	25414	304-724-3700
(Address of principal executive offices)	(Zip Code)	(Registrant's telephone number including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2 – Financial Information

Item 2.02     Results of Operations and Financial Condition.

On February 28, 2017, American Public Education, Inc. issued a press release reporting financial results for the three and twelve months ended December 31, 2016.  A copy of American Public Education’s press release is attached to this report as Exhibit 99.1 and is incorporated in this report by reference.  American Public Education has scheduled a conference call and webcast for 5:00 p.m. Eastern time on February 28, 2017 to discuss its financial results, and slides for that call are attached to this report as Exhibit 99.2 and are incorporated in this report by reference. A copy of the investor fact sheet is attached to this report as Exhibit 99.3 and is incorporated in this report by reference.

Section 9 – Financial Statements and Exhibits

Item 9.01     Financial Statements and Exhibits.

(d) Exhibits

99.1	American Public Education, Inc. press release dated February 28, 2017, reporting financial results for the three and twelve months ended December 31, 2016.
99.2	American Public Education, Inc. slides for February 28, 2017 conference call and webcast for the three and twelve months ended December 31, 2016.
99.3	American Public Education, Inc. fact sheet posted to its investor relations website on February 28, 2017.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		American Public Education, Inc.
Date:	February 28, 2017	By:	/s/ Richard W. Sunderland, Jr.
			Richard W. Sunderland, Jr., Executive Vice President and Chief Financial Officer

EXHIBIT INDEX

99.1	American Public Education, Inc. press release dated February 28, 2017, reporting financial results for the three and twelve months ended December 31, 2016.
99.2	American Public Education, Inc. slides for February 28, 2017 conference call and webcast for the three and twelve months ended December 31, 2016.
99.3	American Public Education, Inc. fact sheet posted to its investor relations website on February 28, 2017.

EX-99.1

Exhibit 99.1

/C O R R E C T I O N -- American Public Education, Inc./

In the news release, American Public Education Reports Fourth Quarter and Full Year 2016 Results, issued 28-Feb-2017 by American Public Education, Inc. over PR Newswire, we are advised by the company that in the first table titled "Registrations and Enrollment" under the "% Change" column, "29%" should be "-29%". The complete, corrected release follows:

American Public Education Reports Fourth Quarter and Full Year 2016 Results

CHARLES TOWN, W.Va., Feb. 28, 2017 /PRNewswire/ -- American Public Education, Inc. (NASDAQ: APEI) – parent company of online learning provider American Public University System (APUS) and campus-based Hondros College of Nursing (HCON) – announced financial results for the quarter and year ended December 31, 2016.

Selected Financial Data:

• Fourth quarter 2016 consolidated revenue decreased 8.5% to $78.6 million, compared to $85.9 million in the same period of 2015.
• Net income for the fourth quarter of 2016 decreased to $6.9 million, or $0.42 per diluted share, compared to net income of $9.8 million, or $0.60 per diluted share, in the same period of 2015.

Registrations and Enrollment Highlights:

• Net course registrations at APUS decreased approximately 10% in the fourth quarter of 2016, compared to the prior year period. Net course registrations by returning students decreased approximately 7% year-over-year and net course registrations by new students decreased approximately 29% year-over-year in the fourth quarter of 2016. ¹
• APUS student enrollment decreased 8% year-over-year to approximately 88,700 students as of December 31, 2016.²
• For the three months ended December 31, 2016, new student enrollment at HCON increased by approximately 1% year-over-year and total student enrollment decreased by 13% to approximately 1,710 students. However, new student enrollment increased by approximately 22% year-over-year and total student enrollment decreased by approximately 8% year-over-year for the three months ended March 31, 2017 (Winter 2017).³

Financial Results:

Total consolidated revenue for the fourth quarter of 2016 decreased 8.5% to $78.6 million, compared to total revenue of $85.9 million in the fourth quarter of 2015. Consolidated income from operations before interest income and income taxes in the fourth quarter of 2016 was $11.3 million, compared to consolidated income from operations before interest income and income taxes of $15.7 million in the fourth quarter of 2015. Net income for the fourth quarter of 2016 was $6.9 million, or $0.42 per diluted share, compared to net income of $9.8 million, or $0.60 per diluted share for the fourth quarter of 2015. The weighted average diluted shares outstanding for the fourth quarters of 2016 and 2015 were approximately 16.3 million and 16.2 million, respectively. Net income for the fourth quarter of 2015 included $1.6 million of expenses related to workforce realignment and a $2.1 million expense for a write-down of information technology and other assets in our APEI segment. The fourth quarter of 2016 did not include comparable expenses.

For the twelve months ended December 31, 2016, total consolidated revenue decreased 4.5% to $313.1 million, compared to $327.9 million in the prior year period. Consolidated income from operations before interest income and income taxes for the twelve months ended December 31, 2016 was $38.3 million, compared to $52.3 million in the prior year period. Net income for the twelve months ended December 31, 2016 was $24.2 million, or $1.49 per diluted share, compared to net income of $32.4 million, or $1.93 per diluted share in the prior year period. The weighted average diluted shares outstanding for the twelve months ended December 31, 2016 and 2015 were approximately 16.2 million and 16.8 million, respectively.

Adjusted net income (a non-GAAP measure) for the twelve months ended December 31, 2016 was $29.6 million, or $1.82 per diluted share. Adjusted net income for the twelve months ended December 31, 2016 excludes a $4.0 million loss on disposal of student course registration software development in our APEI segment and a $4.7 million expense for impairment of goodwill in our HCON segment, and reflects the applicable tax effect of those adjustments.

Adjusted net income for the twelve months ended December 31, 2015 was $34.7 million, or $2.07 per diluted share. Adjusted net income for the twelve months ended December 31, 2015 excludes $1.6 million of expense related to workforce realignment and $2.1 million of expense for a write-down of information technology and other assets in our APEI segment, and reflects the applicable tax effect of those adjustments. For additional information regarding adjusted net income (a non-GAAP measure), please refer to "GAAP to Adjusted Net Income Reconciliation" in the financial tables that follow.

Total cash and cash equivalents as of December 31, 2016 were approximately $146.4 million, compared to $105.7 million as of December 31, 2015. Capital expenditures were approximately $13.8 million for the twelve months ended December 31, 2016, compared to $26.0 million in the prior year period. Depreciation and amortization was $19.4 million for the twelve months ended December 31, 2016, compared to $20.5 million for the same period of 2015.

Registrations and Enrollment:
American Public University System1
For the three months ended December 31,	2016	2015	% Change
Net Course Registrations by New Students	10,300	14,500	-29%
Net Course Registrations	83,000	92,300	-10%
For the twelve months ended December 31,	2016	2015	% Change
Net Course Registrations by New Students	45,800	58,700	-22%
Net Course Registrations	345,400	375,100	-8%
As of December 31,
APUS Student Enrollment2	88,700	96,000	-8%
Hondros College of Nursing3
For the three months ended December 31,	2016	2015	% Change
New Student Enrollment	533	527	+1%
Total Student Enrollment	1,710	1,970	-13%

¹APUS Net Course Registrations represent the approximate aggregate number of courses for which students remain enrolled after the date by which they may drop a course without financial penalty.

²APUS Student Enrollment represents the number of unique active students, including those who take an approved leave of absence for up to two years, who have reached the eighth day of their first course or who have completed at least one course within the last 12 months for which a grade was received.

³HCON Student Enrollment represents the total number of students enrolled in a course immediately after the date by which students may drop a course without penalty.

Non-GAAP Financial Measure ("Adjusted Net Income"):

This press release contains the non-GAAP financial measure of adjusted net income, which excludes certain charges for the loss on disposal of student course registration software development, the write-down of information technology and other assets in our APEI segment and the impairment of goodwill in our HCON segment, and reflects the applicable tax effect of those adjustments. American Public Education believes that the use of adjusted net income is useful because it allows investors to better compare results to prior year periods.

This non-GAAP measure should not be considered in isolation or as an alternative to measures determined in accordance with generally accepted accounting principles in the United States (GAAP). The principal limitation of adjusted net income is that it excludes expenses that are required by GAAP to be recorded. In addition, non-GAAP measures are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses are excluded.

American Public Education is presenting adjusted net income in connection with its GAAP results and urges investors to review the reconciliation of adjusted net income to the comparable GAAP financial measures that is included in the tables following this press release (under the caption "GAAP to Adjusted Net Income Reconciliation") and not to rely on any single financial measure to evaluate its business.

First Quarter 2017 Outlook:

The following statements are based on American Public Education's current expectations. These statements are forward-looking and actual results may differ materially. The Company undertakes no obligation to update publicly any forward-looking statements for any reason unless required by law.

American Public Education anticipates first quarter 2017 consolidated revenues to decrease between approximately 12% and 10% year-over-year, compared to the first quarter of 2016. The Company expects consolidated net income of between $0.25 and $0.30 per diluted share in the first quarter of 2017, prior to taking into account the effect of impairment, infrequent or unusual transactions, if any.

American Public Education also expects the following results from its subsidiaries in the first quarter of 2017:

• At American Public University System, net course registrations by new students are expected to decrease between 25% and 19% year-over-year and net course registrations are expected to decrease between 11% and 9% year-over-year. ¹
• At Hondros College of Nursing, new student enrollment increased by approximately 22% year-over-year and total student enrollment decreased by approximately 8% year-over-year for the three months ended March 31, 2017 (Winter 2017).³

Webcast:

A live webcast of the Company's fourth quarter 2016 earnings conference call will be broadcast today at 5:00 p.m. Eastern time. This call will be open to listeners who log in through the Company's investor relations website, www.AmericanPublicEducation.com.

A replay of the live webcast will also be available starting approximately one hour after the conclusion of the live conference call. The replay will be archived and available to listeners for one year.

About American Public Education
American Public Education, Inc. (NASDAQ: APEI) is a leading provider of higher learning dedicated to preparing students all over the world for excellence in service, leadership and achievement. The Company offers respected, innovative and affordable academic programs and services to students, universities and partner organizations through wholly owned subsidiaries: American Public University System and National Education Seminars Inc., which we refer to in this press release as Hondros College of Nursing. Together, these institutions serve more than 90,000 adult learners worldwide and offer more than 200 degree and certificate programs in fields ranging from homeland security, military studies, intelligence, and criminal justice to technology, business administration, public health, nursing and liberal arts. For additional information, please visit www.apei.com.

Forward Looking Statements
Statements made in this press release regarding American Public Education, Inc., or its subsidiaries, that are not historical facts are forward-looking statements based on current expectations, assumptions, estimates and projections about American Public Education, Inc. and the industry. These forward-looking statements are subject to risks and uncertainties that could cause actual future events or results to differ materially from such statements. Forward-looking statements can be identified by words such as "anticipate," "believe," "seek," "could," "estimate," "expect," "intend," "may," "should," "will" and "would." These forward-looking statements include, without limitation, statements regarding expected growth, expected registration and enrollments, expected revenues, and expected earnings. Actual results could differ materially from those expressed or implied by these forward-looking statements as a result of various factors, including the various risks described in the "Risk Factors" section and elsewhere in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, Quarterly Report on Form 10-Q for the period ended September 30, 2016 and other filings with the SEC. The Company undertakes no obligation to update publicly any forward-looking statements for any reason, unless required by law, even if new information becomes available or other events occur in the future.

American Public Education, Inc.
Consolidated Statement of Income
(In thousands, except per share data)
	Three Months Ended
	December 31,
	2016		2015
	(Unaudited)
Revenues	$	78,625	$	85,912
Costs and expenses:
Instructional costs and services		30,045		29,725
Selling and promotional		14,503		15,164
General and administrative		17,963		18,202
Loss on disposals of long-lived assets		99		757
Loss on assets held for sale		1		—
Depreciation and amortization		4,760		6,342
Total costs and expenses		67,371		70,190
Income from operations before
interest income and income taxes		11,254		15,722
Interest income, net		5		37
Income before income taxes		11,259		15,759
Income tax expense		4,416		6,078
Equity investment income		50		110
Net income	$	6,893	$	9,791
Net income per common share:
Basic	$	0.43	$	0.61
Diluted	$	0.42	$	0.60
Weighted average number of
common shares:
Basic		16,099		16,182
Diluted		16,290		16,248
	Three Months Ended
Segment Information:	December 31,
	2016		2015
Revenues:
American Public Education, Inc.	$	71,082	$	78,176
Hondros College of Nursing	$	7,543	$	7,736
Income (loss) from continuing operations
before interest income and income taxes:
American Public Education, Inc.	$	10,705	$	14,787
Hondros College of Nursing	$	549	$	935
	Twelve Months Ended
	December 31,
	2016		2015
	(Unaudited)
Revenues	$	313,139	$	327,910
Costs and expenses:
Instructional costs and services		117,013		118,848
Selling and promotional		59,095		62,397
General and administrative		68,666		73,047
Loss on disposals of long-lived assets		5,147		817
Loss on assets held for sale		823		—
Impairment of goodwill		4,735		—
Depreciation and amortization		19,384		20,520
Total costs and expenses		274,863		275,629
Income from operations before
interest income and income taxes		38,276		52,281
Interest income, net		116		115
Income before income taxes		38,392		52,396
Income tax expense		14,940		20,072
Equity investment income		703		90
Net income	$	24,155	$	32,414
Net income per common share:
Basic	$	1.50	$	1.94
Diluted	$	1.49	$	1.93
Weighted average number of
common shares:
Basic		16,068		16,676
Diluted		16,214		16,798
	Twelve Months Ended
Segment Information:	December 31,
	2016		2015
Revenues:
American Public Education, Inc.	$	283,941	$	297,439
Hondros College of Nursing	$	29,198	$	30,471
Income (loss) from continuing operations
before interest income and income taxes:
American Public Education, Inc.	$	41,916	$	48,967
Hondros College of Nursing	$	(3,640)	$	3,314

GAAP to Adjusted Net Income Reconciliation:
The following table sets forth the reconciliation of the Company's reported GAAP net income to the calculation of adjusted net income for the twelve months ended December 31, 2016 and 2015:
(In thousands, except per share data)	Twelve Months Ended December 31,
	2016				2015
	$		Per Share		$		Per Share
	(unaudited)
Net income:	$	24,155	$	1.49	$	32,414	$	1.93
Add adjustments:
Loss on disposal of student course
registration software development		3,978		0.25		—		—
Impairment of goodwill		4,735		0.29		—		—
Workforce Realignment Costs		—		—		1,598		0.10
Write-down of Information Technology and
other Assets		—		—		2,105		0.13
Tax effect of non-GAAP adjustments		(3,318)		(0.20)		(1,372)		(0.08)
Adjusted net income:	$	29,550	$	1.82	$	34,745	$	2.07
Weighted average number of diluted common
shares outstanding:	16,214				16,798

CONTACT: Richard W. Sunderland, Jr., CPA, Executive Vice President and Chief Financial Officer, 304.885.5371; Christopher L. Symanoskie, IRC, Vice President, Investor Relations, 703.334.3880

EX-99.2

Exhibit 99.2

February 28, 2017 Recent Results and Developments Fourth Quarter & Full Year 2016

Statements made in this presentation regarding American Public Education, Inc . or its subsidiaries, that are not historical facts are forward - looking statements based on current expectations, assumptions, estimates and projections about American Public Education and the industry . These forward - looking statements are subject to risks and uncertainties that could cause actual future events or results to differ materially from such statements . Forward - looking statements can be identified by words such as “anticipate", “believe”, “seek”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “should”, “will” and “would” . These forward - looking statements include, without limitation, statements regarding expected growth, expected registrations and enrollments, expected revenues, expected earnings, brand and enrollment management, program development and business development initiatives . Actual results could differ materially from those expressed or implied by these forward - looking statements as a result of various factors, including the various risks described in the “ Risk Factors ” section and elsewhere in the American Public Education ’ s Annual Report on Form 10 - K for the year ended December 31 , 2016 and in the American Public Education’s other filings with the SEC . American Public Education undertakes no obligation to update publicly any forward - looking statements for any reason, unless required by law, even if new information becomes available or other events occur in the future . 2 Advancing the Learning Experience | Exploring New Opportunities SAFE HARBOR STATEMENT American Public Education, Inc.

RECENT RESULTS AND HIGHLIGHTS Our Student Persistence Rates Continued to Improve Y/Y • APUS continued to focus on improving student persistence and stabilizing enrollment. • Net course registrations by returning students at APUS declined 7% for the three months ended December 31, 2016. • The first course pass and completion rate for APUS undergraduate students using Federal Student Aid increased by 19% for the three months ended December 31, 2016, compared to the same period last year. • HCON new student enrollment increased approximately 22% y/y for the three months ending March 31, 2017 (Winter 2017). • HCON’s Toledo campus opened in January 2017. Excluding this campus, HCON’s same - campus new student enrollment growth increased approximately 12% y/y for the three months ending March 31, 2017. For the twelve months ended December 31, 2016 APUS Net Course Registrations by Primary Funding Source Other 12% FSA/Title IV 29% Military/TA 37% VA 22% 3 Advancing the Learning Experience | Exploring New Opportunities FSA   -18.7% TA   -7.5% VA   -4.2% OTHER   -5.0% Total:   -10.1% 4Q2016 Change (y/y) APUS Net Course Registrations by Primary Funding Source

4 Advancing the Learning Experience | Exploring New Opportunities Increase Student Persistence Focus on Affordability: • Published undergraduate costs 19% below avg. in - state 4 - year institutions 3 Emphasis on Military & Public Service Communities: • Received “Best for Vets Colleges” distinction from Military Times • Bachelor's programs ranked among the best by US News & World Report Commitment to Student Engagement: • APUS Mobile, Clearpath , Civitas , mentoring and course redesign Changes in Executive Leadership: • Chief Innovation Officer • SVP, Provost • SVP, Enrollment Management STUDENT - FOCUSED APPROACH TO QUALITY 95% ALUMNI SURVEY respondents were either completely satisfied or very satisfied with education received. 1 91% SENIORS SURVEY respondents would probably or definitely chose APUS again if they could start over. 2 1. APUS, 2016 End of Program Survey 2. NSSE, 2016 Survey 3. http://www.apu.apus.edu/lp2/degrees/tuition.htm APUS

5 Advancing the Learning Experience | Exploring New Opportunities APUS ENROLLMENT STABILIZATION Reengineer Processes & Emphasize Course Development Strengthen Enrollment Management: • Improve effectiveness of enrollment lifecycle. • Improve enrollment management and marketing initiatives. • Target marketing efforts to attract highest value students. Expand Programs in Alignment with Workforce Demand: • Launch new degree and certificate programs. • Focus on learning outcomes and course development. Increase Focus on Workforce Skill Gaps: • APUS Momentum TM – launch several unique, competency - based degree programs. • Center for Applied Learning – created to provide training programs aligned with needs of public safety professionals and their employers.

FINANCIAL RESULTS SUMMARY Fourth Quarter 2016 Advancing the Learning Experience | Exploring New Opportunities 6 • Consolidated revenue decreased 8.5% to $78.6 million, compared to $85.9 million in the same period of 2015. • Costs and Expenses: • Instructional costs and services expenses increased as a percentage of revenue to 38.2%, compared to 34.6% in the prior year period. • Selling and promotional expenses increased as a percentage of revenue to 18.4%, compared to 17.7% in the prior year period. • General and administrative expenses increased as a percentage of revenue to 22.8% compared to 21.2% in the prior year period. • Net income decreased to $6.9 million, or $ 0.42 per diluted share, compared to $9.8 million, or $ 0.60 per diluted share, in the prior year period. • Cash and cash equivalents increased to $146.4 million, compared to $105.7 million at December 31, 2015.

FINANCIAL/OPERATIONAL OUTLOOK First Quarter 2017 Advancing the Learning Experience | Exploring New Opportunities 7 The following statements are based on current expectations. These statements are forward - looking and actual results may differ materially. Approximate Change (y/y) APUS Net course registrations 1 by new students - 25% to - 19% APUS Net course registrations 1 - 11% to - 9% HCON New student enrollment 2 Approx. +22% HCON Total student enrollment 2 Approx. - 8% Total consolidated revenue - 12% to - 10% Total net income per diluted share* $0.25 to $0.30 First Quarter 2017 1 APUS Net Course Registrations represent the approximate aggregate number of courses for which students remain enrolled after the date by which they may drop a course without financial penalty . 2 HCON Student Enrollment represents the total number of students enrolled in a course immediately after the date by which students may drop a course without penalty . * Prior to taking into account the effect of impairment, infrequent or unusual transactions, if any.

Fourth Quarter 2016 Financial Results Conference Call February 28, 2017

APPENDIX GAAP to Adjusted Net Income Reconciliation 9 GAAP to Adjusted Net Income Reconciliation: (In thousands, except per share data)                       Net income: $ 24,155 $ 1.49   $ 32,414 $ 1.93 Add adjustments: Loss on disposal of student course registration software development 3,978 0.25 — — Impairment of goodwill 4,735 0.29 — — Workforce Realignment Costs — — 1,598 0.10 Write-down of Information Technology and other Assets — — 2,105 0.13 Tax effect of non-GAAP adjustments (3,318) (0.20) (1,372) (0.08) Adjusted net income: $ 29,550 $ 1.82   $ 34,745 $ 2.07 Weighted average number of diluted common           shares outstanding:   16,214 $ Per Share 16,797 Per Share (unaudited) Twelve Months Ended December 31, $ The following table sets forth the reconciliation of the Company’s reported GAAP net income to the calculation of adjusted net income for the twelve months ended December 31, 2016 and 2015: 2016 2015

EX-99.3

Exhibit 99.3 

 

DECEMBER 2016 TICKER: APEI EXCHANGE: NASDAQ AMERICAN PUBLIC EDUCATION, INC. (NASDAQ: APEI) is a leading provider of higher learning dedicated to preparing students all over the world for excellence in service, leadership and achievement. The Company offers respected, innovative and affordable academic programs and services to students, universities and partner organizations through wholly owned subsidiaries: American Public University System and National Education Seminars Inc., which we refer to in this press release as Hondros College of Nursing. American Public University System (APUS), which is accredited by the Higher Learning Commission (HLC), offers online degree and certificate programs through American Military University (AMU) and American Public University (APU). Hondros College of Nursing (HCON) educates nurses at five Ohio campuses in Cincinnati/West Chester, Cleveland/Independence, Columbus/Westerville, Dayton/Fairborn and Toledo/Maumee. Together, these institutions serve more than 90,000 adult learners worldwide and offer more than 200 degree and certificate programs in fields ranging from homeland security, military studies, intelligence, and criminal justice to technology, business administration, public health, nursing and liberal arts. For additional information, please visit www.apei.com. 30+ HCON RELATIONSHIPS with healthcare employers 91% APUS SENIORS SURVEYED respondents would probably or definitely chose APUS again if they could start over.2 95% APUS ALUMNI SURVEYED respondents were either completely satisfied or very satisfied with education received.1 70K+ APUS ALUMNI 5K+ HCON ALUMNI NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS TOTAL ASSETS NET CASH PROVIDED BY OPERATING ACTIVITIES REVENUE $320,712 $42,323 $350,020 $42,034 $40,877 $299,427 $329,479 $297,904 $327,910 $313,516 $313,139 $61,030 $271,655 $59,414 $57,211 $56,014 $32,414 $52,924 $237,603 $24,155 '12 '13 '14 '15 '16 '12 '13 '14 '15 '16 '12 '13 '14 '15 '16 '12 '13 '14 '15 '16 Contact: Chris Symanoskie, IRC, Vice President, Investor Relations 703-334-3880 or csymanoskie@apus.edu NOTE: Past performance is not indicative of future results. Additional information, including important details about risk factors, can be found in APEI's filings with the U.S. Securities and Exchange Commission, www.sec.gov. 1. APUS, 2016 End of Program Survey 2. NSSE, 2016 Survey  

APUSAMERICAN PUBLIC UNIVERSITY SYSTEM An online institution of higher learning serving the needs of military, public service and civilian communities through American Military University (AMU) and American Public University (APU).ENROLLMENT AND REGISTRATIONS For the three months ended December 31,20162015% Change Net Course Registrations by New Students 10,300 14,500-29%Net Course Registrations183,00092,300 -10%For the twelve months ended December 31,20162015% Change Net Course Registrations by New Students45,80058,700-22%Net Course Registrations345,400375,100-8%As of December 31,20162015% Change Active Student Enrollement288,70096,000-8%ENROLLMENT BY DEGREE LEVEL¦59%Bachelors¦16%Associates¦16%Masters¦9%Certificate/otherENROLLMENT BY SCHOOL¦26%Security & Global Studies¦23%Business¦23%Arts & Humanities¦15%Science, Technology, Engineering & Math¦10%Public Service & Health¦ 3%Education AT-A-GLANCE– 88% of Students are Working Adults– Avg. Age of Students: 33 years– Avg. Undergraduate Class Size: 19 students– Avg. Graduate class size: 9 students– Gender Ratio: 64% male / 36% female– 47%+ of APUS students referred by others– Over 200 Degrees and Certificate Programs– 2,000+ Globally Located Faculty Members AMU & APU GRADUATES– 70,000+ Alumni– Nearly 40 graduate students and alumni honored as Presidential Management Fellowship finalists, one of the nation’s most prestigious programs for leadership and public service. REGISTRATIONS BY PRIMARY FUNDING SOURCE For the twelve months ended December 31, 2016¦36%Department of Defense Tuition Assistance (TA)¦29%Federal Student Aid (Title IV)¦22%Veteran’s Benefits (VA)¦13%Cash & Other Sources TUITION Our total costs of combined tuition, books, and required fees are approximately 19% less for undergraduate and 38% less for graduate students than the average published in-state total costs at public institutions.3ENROLLMENT BY PROGRAMHONDROS COLLEGE OF NURSING Serving the needs of nurses and the healthcare community through campus locations in Cincinnati, Cleveland, Columbus, Dayton, and Toledo, Ohio. STUDENT ENROLLMENT4As of December 31,20162015% Change New Student Enrollment533527+1%Total Student Enrollment1,7101,970 -13%For the full year ended December 31, 2016.¦59%Licensed Practical Nurse¦32%Associate Degree in Nursing¦9%RN-Bachelors Science of Nursing AT-A-GLANCE– Avg. Age of Students: 30 years– Gender Ratio: 92% female / 8% male– Avg. Class size: 15 students GRADUATES– 5,600+ alumni Approximate Cost (Tuition & Fees) of Degree Completion Licensed Practical Nurse$17,040Associate Degree in Nursing$25,010 Alumni tuition is $23,790Bachelors Science of Nursing$20,880Alumni tuition is $19,4881. APUS Net Course Registrations represent the approximate aggregate number of courses for which students remain enrolled after the date by which they may drop a course without financial penalty.2. APUS Student Enrollment represents the number of unique active students, including those who take an approved leave of absence for up to two years, who have reached the eighth day of their first course or who have completed at least one course within the last 12 months for which a grade was received.3. For additional details, visit www.amu.apus.edu/tuition-and-finance/tuition-and-fees/4. HCON Student Enrollment represents the total number of students enrolled in a course immediately after the date by which students may drop a course without penalty.