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

March 10, 2020

(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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ⃞

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ⃞

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value	APEI	Nasdaq Global Select Market

Section 2 – Financial Information

Item 2.02     Results of Operations and Financial Condition.

On March 10, 2020, American Public Education, Inc. issued a press release reporting financial results for the three and twelve months ended December 31, 2019.  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 March 10, 2020 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 March 10, 2020, reporting financial results for the three and twelve months ended December 31, 2019.
	99.2	American Public Education, Inc. slides for March 10, 2020 conference call and webcast for the three and twelve months ended December 31, 2019.
	99.3	American Public Education, Inc. fact sheet posted to its investor relations website on March 10, 2020.

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:	March 10, 2020	By:	/s/ Richard W. Sunderland, Jr.
			Richard W. Sunderland, Jr., Executive Vice President and Chief Financial Officer

Exhibit 99.1

Exhibit 99.2

Exhibit 99.3

EX-99.1

Exhibit 99.1

American Public Education Reports Fourth Quarter and Full Year 2019 Results

CHARLES TOWN, W.Va., March 10, 2020 /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 (HCN) – announced financial results for the three and twelve months ended December 31, 2019.

Fourth Quarter Highlights:

• Consolidated revenue decreased 3% year-over-year to $74.4 million.
• Net income was $5.7 million, or $0.37 per diluted share, compared to net income of $9.1 million, or $0.55 per diluted share, in the fourth quarter of 2018.
• Net course registrations and net course registrations by new students at APUS increased by approximately 1% year-over-year.¹
• APUS student enrollment decreased 1% to 81,000 students, compared to the prior year.²
• For the three months ended March 31, 2020 (Winter Term), new student enrollment at HCN increased approximately 31% year-over-year and total student enrollment decreased 9% year-over-year.

"Our recent value-creation study revealed several promising opportunities and further validated our belief that APEI's high ROI on student educational investment can drive sustained enrollment growth," said Angela Selden, chief executive officer of APEI. "Our unique value proposition is not widely known, making it one of higher education's best kept secrets. But we intend to change that."

Selden added, "This year we will begin implementing a fresh new marketing approach intended to maximize our potential to reach a wider audience of learners who will discover that our affordability is matched (or exceeded) only by the ability of APUS to provide a flexible, relevant, high value education from the moment they enroll and throughout their lives."

Financial Results:

Total consolidated revenue for the fourth quarter of 2019 decreased by 3% to $74.4 million, compared to total revenue of $76.9 million in the fourth quarter of 2018. This decrease was driven by a $0.3 million, or 0.5%, decrease in APEI Segment revenue and a $2.2 million, or 21.7%, decrease in HCN Segment revenue.

Consolidated income from operations before interest income and income taxes in the fourth quarter of 2019 was $8.6 million, compared to consolidated income from operations before interest income and income taxes of $11.4 million in the fourth quarter of 2018. HCN Segment loss from operations before interest income and income taxes decreased by $1.9 million, compared to the prior year period. APEI Segment income from operations before interest income and income taxes decreased by $0.9 million, compared to the prior year period. APEI Segment income includes $1.0 million in pretax costs related to the information technology transformation project.

Net income for the three months ended December 31, 2019 was $5.7 million, or $0.37 per diluted share, compared to net income of $9.1 million, or $0.55 per diluted share, in the same period of 2018. The weighted average diluted shares outstanding for the fourth quarter of 2019 and 2018 were approximately 15.6 million and 16.7 million, respectively.

For the twelve months ended December 31, 2019, total consolidated revenue decreased by 4% to $286.3 million, compared to total revenue of $297.7 million in the prior year period. This decrease was driven by a $8.1 million, or 21.7%, decrease in HCN Segment revenue and a $3.2 million, or 1.2%, decrease in APEI Segment revenue.

Consolidated income from operations before interest income and income taxes for the twelve months ended December 31, 2019 was $12.8 million, compared to $32.5 million in the prior year period. Net income for the twelve months ended December 31, 2019 was $10.0 million, or $0.62 per diluted share, compared to net income of $25.6 million, or $1.54 per diluted share, in the prior year period. The weighted average diluted shares outstanding for the twelve months ended December 31, 2019 and 2018 were approximately 16.3 million and 16.6 million, respectively.

Adjusted net income for the twelve months ended December 31, 2019 was $17.7 million, or $1.09 per diluted share. 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, 2019 were approximately $202.7 million, compared to $212.1 million as of December 31, 2018. Capital expenditures were approximately $7.3 million for the twelve months ended December 31, 2019, compared to $9.4 million in the prior year period. Depreciation and amortization expense was $15.6 million for the twelve months ended December 31, 2019, compared to $17.5 million in the prior year period.

During the three and twelve months ended December 31, 2019, the Company repurchased 450,223 and 1,416,304 shares of common stock, respectively. On December 5, 2019, our Board approved an additional authorization to repurchase up to $25.0 million of shares. At December 31, 2019, there remained $22.0 million available under the share repurchase authorization.

Registrations and Enrollment:
American Public University System1
For the three months ended December 31,	2019	2018	% Change
Net Course Registrations by New Students	9,900	9,800	1%
Net Course Registrations	79,800	79,400	1%
For the twelve months ended December 31,	2019	2018	% Change
Net Course Registrations by New Students	40,200	40,100	0%
Net Course Registrations	316,700	320,300	-1%
As of December 31,
APUS Student Enrollment2	81,000	81,400	-1%
Hondros College of Nursing3
For the three months ended December 31,	2019	2018	% Change
New Student Enrollment	530	660	-20%
Total Student Enrollment	1,600	2,110	-24%
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 StudentEnrollment 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.  Excludes students in doctoral programs.
3HCNStudent Enrollment represents the total number of students enrolled in a course after the date by which students may drop a course without financial penalty.

First Quarter 2020 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 the change in first quarter 2020 consolidated revenue to be between a 1% decline and a 3% increase compared to the prior year period. The Company expects diluted earnings per share to be between $0.13 and $0.18 in the first quarter of 2020.

American Public Education expects the following results from its subsidiaries in the first quarter of 2020:

• At APUS, net course registrations by new students are expected to be approximately flat and net course registrations are expected to increase by approximately 1% compared to the prior year period.
• At HCN, new student enrollment increased approximately 31% and total student enrollment decreased approximately 9% year-over-year for the three months ended March 31, 2020.

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

This press release contains the non-GAAP financial measure of adjusted net income for the twelve months ended December 31, 2019 and 2018. 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.

For the twelve months ended December 31, 2019, adjusted net income excludes $2.8 million in employee compensation costs for post-employment benefits that will be payable to the APUS President upon retirement, and an aggregate non-cash expense of $7.3 million associated with a reduction in the carrying value of goodwill for the Company's HCN Segment, as well as the applicable tax effect of the adjustments. In addition, the prior year period excludes approximately $1.7 million in pre-tax expenses associated with the voluntary reduction in force program announced on March 12, 2018 as well as the applicable tax effect of the adjustment.

These non-GAAP measures 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.

The Company 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.

Webcast:

A live webcast of the Company's fourth quarter 2019 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.apei.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 80,000 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. 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 our new advertising and marketing initiatives, expected growth, expected registration and enrollments, expected revenues, earnings and expenses, plans with respect to recent, current and future initiatives (including advertising and marketing initiatives and their expected benefits), and investments and partnerships..

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 risks and uncertainties include, among others, risks related to: the Company's dependence on the effectiveness of its ability to attract students who persist in its institutions' programs; the Company's ability to effectively market its programs; adverse effects of changes the Company makes to improve the student experience and enhance the ability to identify and enroll students who are likely to succeed; the Company's ability to maintain strong relationships with the military and maintain enrollments from military students; the Company's ability to comply with regulatory and accrediting agency requirements and to maintain institutional accreditation; the Company's reliance on Department of Defense tuition assistance, Title IV programs, and other sources of financial aid; the Company's dependence on its technology infrastructure; strong competition in the postsecondary education market and from non-traditional offerings; and 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, 2019 and other filings with the SEC. You should not place undue reliance on any forward-looking statements. 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,
	2019		2018
Revenues	$	74,381	$	76,930
Costs and expenses:
Instructional costs and services		28,008		28,441
Selling and promotional		15,021		14,038
General and administrative		18,873		18,676
Loss on disposals of long-lived assets		32		—
Impairment of Goodwill		—		—
Depreciation and amortization		3,838		4,343
Total costs and expenses		65,772		65,498
Income from operations before
interest income and income taxes		8,609		11,432
Interest income, net		701		987
Income before income taxes		9,310		12,419
Income tax expense		3,591		3,294
Equity investment income (loss)		—		(32)
Net income	$	5,719	$	9,093
Net income per common share:
Basic	$	0.37	$	0.55
Diluted	$	0.37	$	0.55
Weighted average number of
common shares:
Basic		15,379		16,424
Diluted		15,563		16,656
	Three Months Ended
Segment Information:	December 31,
	2019		2018
Revenues:
American Public Education, Inc.	$	66,513	$	66,853
Hondros College of Nursing	$	7,895	$	10,077
Intersegment Elimination1	$	(27)	$	—
Income (loss) from operations before
interest income and income taxes:
American Public Education, Inc.	$	9,164	$	10,030
Hondros College of Nursing	$	(554)	$	1,402
Intersegment Elimination1	$	(1)	$	—
	Twelve Months Ended
	December 31,
	2019		2018
Revenues	$	286,270	$	297,687
Costs and expenses:
Instructional costs and services		111,916		115,280
Selling and promotional		60,028		57,042
General and administrative		78,082		74,456
Loss on disposals of long-lived assets		556		882
Impairment of goodwill		7,336		—
Depreciation and amortization		15,596		17,501
Total costs and expenses		273,514		265,161
Income from operations before
interest income and income taxes		12,756		32,526
Interest income, net		3,908		2,915
Income before income taxes		16,664		35,441
Income tax expense		5,187		9,287
Equity investment loss		(1,464)		(515)
Net income	$	10,013	$	25,639
Net income per common share:
Basic	$	0.62	$	1.56
Diluted	$	0.62	$	1.54
Weighted average number of
common shares:
Basic		16,094		16,404
Diluted		16,255		16,634
	Twelve Months Ended
Segment Information:	December 31,
	2019		2018
Revenues:
American Public Education, Inc.	$	256,899	$	260,062
Hondros College of Nursing	$	29,479	$	37,625
Intersegment Elimination1	$	(108)	$	—
Income (loss) from operations before
interest income and income taxes:
American Public Education, Inc.	$	23,522	$	28,561
Hondros College of Nursing	$	(10,768)	$	3,965
Intersegment Elimination1	$	2	$	—
1 Effective January 1, 2019, the APEI Segment began charging the HCN Segment for the value of courses taken by HCN Segment employees at American Public University System.  The intersegment revenue elimination is the elimination of this intersegment revenue in consolidation.

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, 2019 and 2018:
(In thousands, except per share data)
	Twelve Months Ended December 31,
	2019				2018
	$		Per Share		$		Per Share
Net income:	$	10,013	$	0.62	$	25,639	$	1.54
Add adjustments:
Impairment of goodwill		7,336		0.45		—		—
Voluntary reduction in force		—		—		1,714		0.10
Compensation expense adjustment		2,814		0.17		—		—
Tax effect of the non-GAAP adjustment		(2,450)		(0.15)		(447)		(0.03)
Adjusted net income:	$	17,713	$	1.09	$	26,906	$	1.62
Weighted average number of diluted
common shares outstanding:	16,255				16,634

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

Fourth Quarter 2019Results March 10,2020 PRESENTEDBY AngelaSelden President andCEO Richard Sunderland,CPA Executive VP andCFO Exhibit 99.2

Safe HarborStatement 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, 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, expenses and earnings, andplans with respect to recent, current and future initiatives (including our marketing initiative and efforts to rebuild the nursing platform as well as information technology replacements and upgrades), investments and partnerships. 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, 2019 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.“An investment in knowledge pays the best interest.” Benjamin Franklin

OUR PRIORITIES & EARLY RESULTS A picture containing bird Description automatically generated • Grow the Core Business.Recent value-creation study revealed several promising opportunities and validated our belief that a high ROI on learner educational investment can drive sustained enrollment growth. • Increasethe Number of Military Learners withMinimal orNo Out-of-Pocket Costs.Extending tuition and book grants for active-duty military may be positively impacting net course registrations by students utilizing military tuition assistance. • Enhancethe Student Experience.APUSis live with a new cloud-based LMS and plans to complete a full rollout of the LMS and a new CRM by 2021. • Stabilize and Grow HCN. Several key performance indicators such as new student enrollment, withdrawal rates, retention rates, and bad debt expense have shown initial signs of improvement year-over-year. HCN also announced the opening of the Indianapolis Campus with classes starting on April 6, 2020. .42.1%TA .23.7% FSA .22.1%VA . 12.1%Other FOURTH QUARTER 2019 RESULTS MARCH 10,2020 %Change(Y/Y) TA +5.5% VA +0.1% Other -1.7% FSA -6.1% Total +0.5% THREE MONTHS ENDING DECEMBER 31,2019 APUS Net Course Registrations by Primary Funding Source:

Consolidated revenue decreased by 3% to $74.4 million, compared to $76.9million in the same period of 2018.•Net incomeof $5.7 million, or $0.37per diluted share, compared to net income of $9.1million, or $0.55per diluted share, in the prior yearperiod. Net income in 4Q19 was impacted by an operating loss in our HCN Segment, as well as technology transformation project costs and higher selling and promotional expenses at APUS. Total cash and cash equivalents as of December 31, 2019 were approximately $202.7 million, compared to $212.1million as of December 31,2018. •We repurchased 450,223 shares of common stock at an average price of $23.75 per share. •On December 5, 2019, our Board approved an additional authorization to repurchase up to $25.0 million of shares. At December 31, 2019, there remained $22.0 million available under this authorization 4

5 APEI OUTLOOK These statements are based on current expectations. These statements are forward-looking and actual results may differmaterially.First Quarter 2020 Approximate Y/Y Change APUS Net course registrations1 by new students Approximately+0% APUS Net course registrations1 Approximately +1% HCN New student enrollment2 +31% HCN Student enrollment2 -9% AEI Consolidated revenue -1% to +3% APEI Consolidated net income per share $0.13 to $0.18

Three Months Ended December31, Twelve Months Ended December31, 2019 2018 2019 2018 COSTS ANDEXPENSES Instructional costs and services 37.7% 37.0% 39.1% 38.7% Selling and promotional 20.2% 18.2% 21.0% 19.1% General and administrative 25.4% 24.3% 27.3% 25.0% Loss on disposals of long-lived assets — — 0.2% 0.3% Impairment of goodwill — — 2.5% — Depreciation and amortization 5.1% 5.6% 5.4% 5.9% Total costs and expenses 88.4% 85.1% 95.5% 89.0% 4 APPENDIX FOURTH QUARTER 2019 RESULTS MARCH 10,2020

EX-99.3

Exhibit 99.3 97% APUS ALUMNI SURVEYED Respondents indicated that APUS programs met their overall expectations.2A leading provider of higher education for adult learners, American Public Education Inc. (APEI) offers affordable, accessible, relevant and quality academic programs and services to students, universities and partner organizations through its wholly owned subsidiaries American Public University System (APUS) and National Education Seminars Inc., which we refer to as Hondros College of Nursing (HCN). DECEMBER 2019 TICKER: APEI EXCHANGE: NASDAQ45+ HCN RELATIONSHIPS with healthcare employers96K+ APUS ALUMNI6K+ HCN ALUMNI 95% APUS ALUMNI SURVEY Respondents would recommend AMU/APU to a friend or colleague.1 Net Income Attributable Net Cash Provided Revenue (in thousands) 2019 $286,2702018.$297,6872017.$299,2482016.$313,139 to Common Stockholders (in thousands) 2019.$25,6392018.$21,1212017.$24,1552016.$32,414 by Operating Activities (in thousands) 2019.$38,3702018.$44,1792017.$47,9382016.$56,014 Total Assets (in thousands) 2019.$359,3952018.$370,9582017.$399,0382016.$315,620 NOTE: Past performance is not indicative of future results. Additional information, including important details about risk factors, can be found in APEIs filings with the U.S. Securities and Exchange Commission, www.sec.gov. Chris Symanoskie, IRC, Vice President, Investor Relations 7033343880 or csymanoskie@apei.com1. APUS, 2018 1year Alumni Survey2. APUS, 2017 End of Program Survey

American Public University System1 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 Registrations1 For the three months ended December 31, 2019 2018 % Change Net Course Registrations by New Students 9,900 9,800 +1% Net Course Registrations 79,800 79,400 +1% For the twelve months ended December 31, 2019 2018 % Change Net Course Registrations by New Students 40,200 40,100 0% Net Course Registrations 316,700 320,300 -1% As of December 31, APUS Student Enrollment2 81,000 81,400 -1% At-A-Glance5 87% of Students Are Working Adults Avg. Age of Students: 32 years Avg. Undergraduate Class Size: 19 students Avg. Graduate Class Size: 8 students Gender Ratio: 64% male / 36% female 49%+ of APUS Students Referred by Others Over 200 Degree and Certificate Programs 1,800 Globally-Located Faculty Members 108,700 conferred degrees and certificates Registrations by Primary Funding Source For the twelve months ended December 31, 2019 Return on Investment for Learners APUS programs rank #93 nationally, or in the top 2%, for return on student investment.6 72% of AMU and APU alumni have graduated with no APUS-incurred student loan debt.3 Student Satisfaction 30% of APUS alumni returned for a 2nd degree7 49% of APUS students were referred by others8 Enrollment by Degree Level5 Enrollment by School5 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. 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. Includes alumni who graduated with an Associate’s, Bachelor’s or Master’s degree from APUS as of December 31, 2019. Student loan debt is defined as student loans and private education loans and considers tuition, fees, living expenses, and book costs associated with courses taken at APUS. 4. HCN Student Enrollment represents the total number of students enrolled in a course after the date by which students may drop a course without financial penalty. 5. As of December 31, 2019. 6. Georgetown University Center on Education and Workforce, A First Try at ROI: Ranking 4,500 Colleges, 2019 7. Undergraduate students who completed an associate or bachelor’s degree in 2018 and returned for a second degree at any level 8. Students starting in 2019 - Quarter 4

Hondros College of Nursing4 Serving the needs of nurses and the healthcare community through campus locations in Cincinnati, Cleveland, Columbus, Dayton, Toledo, and Indianapolis. For the three months ended December 31, 2019 2018 % Change New Student Enrollment 530 660 -20% Total Student Enrollment 1,600 2,110 -24% Approximate Cost (Tuition & Fees) of Degree Completion Practical Nursing $19,700 Associate Degree in Nursing $28,500 Alumni tuition is $24,5226 Student Enrollment4 Enrollment by Program For the full year ended December 31, 2019. At-A-Glance ¢ Avg. Age of Students: 30 years ¢ Gender Ratio: 92% female / 8% male ¢ Avg. Class Size: 15 students Graduates ¢ 6,000+ alumni 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. 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. Includes alumni who graduated with an Associate’s, Bachelor’s or Master’s degree from APUS as of December 31, 2019. Student loan debt is defined as student loans and private education loans and considers tuition, fees, living expenses, and book costs associated with courses taken at APUS. 4. HCN Student Enrollment represents the total number of students enrolled in a course after the date by which students may drop a course without financial penalty. 5. For the twelve months ended December 31, 2019. 6. Tuition for alumni of HCN’s Practical Nursing program is $23,790.