Segment Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company has two operating segments that are managed in the following reportable segments:

•American Public Education Segment, or APEI Segment; and

•Hondros College of Nursing Segment, or HCN Segment.

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 APEI and HCN Segments.

        A summary of financial information by reportable segment is as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	(Unaudited)				(Unaudited)
Revenue:
American Public Education Segment	$	73,547	$	63,448	$	140,641	$	129,169
Hondros College of Nursing Segment	8,602		7,141		16,141		14,888
Intersegment elimination	(22)		(29)		(39)		(56)
Total Revenue	$	82,127	$	70,560	156,743		$	144,001
Depreciation and amortization:
American Public Education Segment	$	3,221	$	3,688	$	6,415	$	7,470
Hondros College of Nursing Segment	170		255		314		524
Total Depreciation and amortization	$	3,391	$	3,943	6,729		$7,994
Income (loss) from operations before interest income and income taxes:
American Public Education Segment	$	9,077	$	6,589	$	12,655	$	14,111
Hondros College of Nursing Segment	(35)		(910)		(921)		(7,056)
Intersegment elimination	(1)		(1)		—		5
Total income from operations before interest income and income taxes	$	9,041	$	5,678	11,734		$	7,060
Interest income, net:
American Public Education Segment	$	177	$	1,123	867		$	2,170
Hondros College of Nursing Segment	2		12		14		18
Total Interest income, net	$	179	$	1,135	881		$	2,188
Income tax expense (benefit):
American Public Education Segment	$	2,537	$	2,132	3,752		$	3,798
Hondros College of Nursing Segment	(5)		(234)		(246)		(1,963)
Total Income tax expense (benefit)	$	2,532	$	1,898	3,506		$	1,835
Capital expenditures:
American Public Education Segment	$	999	$	1,229	$	2,744	$	2,574
Hondros College of Nursing Segment	25		143		149		383
Total Capital expenditures	$	1,024	$	1,372	2,893		$2,957

The APEI Segment charges the HCN Segment for the value of courses taken by HCN Segment employees at APUS. The intersegment elimination represents the elimination of this intersegment revenue in consolidation.

A summary of the Company’s consolidated assets by reportable segment is as follows (in thousands):

	As of June 30, 2020		As of December 31, 2019
	(Unaudited)
Assets:
American Public Education Segment	$	312,479	$	305,896
Hondros College of Nursing Segment	49,222		49,001
Total Assets	$	361,701	$	354,897