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

May 11, 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 May 11, 2020, American Public Education, Inc. issued a press release reporting financial results for the three months ended March 31, 2020.  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 May 11, 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 May 11, 2020, reporting financial results for the three months ended March 31, 2020.
99.2	American Public Education, Inc. slides for May 11, 2020 conference call and webcast for the three months ended March 31, 2020.
99.3	American Public Education, Inc. fact sheet posted to its investor relations website on May 11, 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:	May 11, 2020	By:	/s/ Richard W. Sunderland, Jr.
			Richard W. Sunderland, Jr., Executive Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

American Public Education Reports First Quarter 2020 Results

Highlights Expected Increases in New Student Enrollment and Strong Financial Position

CHARLES TOWN, W.Va., May 11, 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 months ended March 31, 2020.

First Quarter Highlights:

• Consolidated revenue increased 1.6% year-over-year to $74.6 million.
  
  
• Net income was $2.4 million, or $0.16 per diluted share, compared to net income of $1.0 million, or $0.06 per diluted share, in the first quarter of 2019.
  
  
• Net course registrations at APUS increased by approximately 1% year-over-year.¹
  
  
• APUS student enrollment increased 2% to 82,800 students, compared to the prior year.^2,3

Additional Highlights:

• For second quarter 2020, at APUS, net course registrations by new students are expected to increase between 8% and 12% year-over-year.
  
  
• For the three months ended June 30, 2020 (Spring Term), new student enrollment at HCN increased 56% year-over-year - a spring-term record for new student enrollment - and total student enrollment increased 14% year-over-year.⁴
  
  
• American Public Education anticipates second quarter 2020 consolidated revenue to increase between 8% and 12%, compared to the prior year period. The Company expects diluted earnings per share to be between $0.20 and $0.25 in the second quarter of 2020.
  
  
• In response to COVID-19 pandemic, APEI has successfully implemented its business continuity plan, which includes moving nearly all employees to remote work and supporting learners so that they may continue with their studies at APUS and HCN without significant interruption.

"We are grateful that our operations have not suffered negative impacts from pandemic-related issues thus far, ensuring that our students' higher education journey can continue on schedule. I am incredibly inspired by our faculty and staff who have managed to move all operations – Hondros, APUS and APEI - to remote working. Certainly our primary concern has been and continues to be the health and safety of all employees and students." said Angela Selden, Chief Executive Officer of APEI.

"In these challenging times, we could not be more pleased with momentum across all of our business units. Our institutions of higher learning are well positioned financially and operationally to serve current and prospective students, as well as visiting students whose education may have been disrupted or those considering alternative options for the fall," Selden added. "Our unique capabilities, coupled with our affordability and culture of service, will enable us to fulfill our mission with distinction and carry us well into the future."

Financial Results:

Total consolidated revenue for the first quarter of 2020 increased by 1.6% to $74.6 million, compared to total revenue of $73.4 million in the first quarter of 2019. The increase was driven by a $1.4 million, or 2.1%, increase in APEI Segment revenue and a $0.2 million, or 2.7%, decrease in HCN Segment revenue.

Consolidated income from operations before interest income and income taxes in the first quarter of 2020 was $2.7 million, compared to consolidated income from operations before interest income and income taxes of $1.4 million in the first quarter of 2019. APEI Segment income from operations before interest income and income taxes decreased by $3.9 million, compared to the prior year period. APEI Segment income includes a $2.3 million increase in pretax advertising costs as compared to the prior year period and $0.9 million in pretax costs related to APEI's information technology transformation project. HCN Segment loss from operations before interest income and income taxes decreased to $0.9 million, compared to a loss of $6.1 million in the prior year period.

Net income for the three months ended March 31, 2020 was $2.4 million, or $0.16 per diluted share, compared to net income of $1.0 million, or $0.06 per diluted share, in the same period of 2019. The weighted average diluted shares outstanding for the first quarter of 2020 and 2019 were approximately 15.1 million and 16.7 million, respectively.

Adjusted net income for the first quarter of 2019 was $5.3 million, or $0.32 per diluted share. Adjusted net income for the first quarter of 2019 excludes a non-cash expense of $5.9 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. 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 March 31, 2020 were approximately $196.8 million, compared to $202.7 million as of December 31, 2019. Capital expenditures were approximately $1.9 million for the three months ended March 31, 2020, compared to $1.6 million in the prior year period. Depreciation and amortization expense was $3.3 million for the three months ended March 31, 2020, compared to $4.1 million in the prior year period.

Registrations and Enrollment:
American Public University System1
For the three months ended March 31,	2020	2019	% Change
Net Course Registrations by New Students	10,100	10,100	0%
Net Course Registrations	84,800	84,300	1%
As of March 31,
APUS Student Enrollment2	82,8003	81,200	2%
Hondros College of Nursing4
For the three months ended March 31,	2020	2019	% Change
New Student Enrollment	444	340	31%
Total Student Enrollment	1,570	1,730	-9%
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 are currently on an approved leave of absence, who are currently in class or have completed a course within the past 12 months. Excludes students in doctoral programs.
3APUS Student Enrollment as of March 31, 2020, includes 1,900 students whose last 8-week course started January 7, 2019 and ended in early March 2019.
4HCN Student Enrollment represents the approximate number of students enrolled in a course after the date by which students may drop a course without financial penalty.

Second Quarter 2020 Outlook:

The following statements are based on APEI'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 second quarter 2020 consolidated revenue to increase between 8% and 12%, compared to the prior year period. The Company expects diluted earnings per share to be between $0.20 and $0.25 in the second quarter of 2020.

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

• At APUS, net course registrations by new students are expected to increase between 8% and 12% year-over-year and net course registrations are expected to increase between 6% and 10% year-over-year.
• At HCN, new student enrollment increased approximately 56% and total student enrollment increased approximately 14% year-over-year for the three months ended June 30, 2020.

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

This press release contains the non-GAAP financial measure of adjusted net income for the three months ended March 31, 2019. 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.

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 first quarter 2020 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 expected growth, expected registration and enrollments, expected revenues, earnings and expenses, plans with respect to recent, current and future initiatives, and future impacts of and the Company's response to the COVID-19 pandemic.

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; impacts of the COVID-19 pandemic; the Company's ability to effectively market its institutions' 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, Quarterly Report on Form 10-Q for the period ended March 31, 2020, 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
	March 31,
	2020		2019
Revenues	$	74,616	$	73,441
Costs and expenses:
Instructional costs and services		29,230		27,915
Selling and promotional		18,186		15,047
General and administrative		21,003		19,065
Loss on disposals of long-lived assets		166		126
Impairment of Goodwill		—		5,855
Depreciation and amortization		3,338		4,051
Total costs and expenses		71,923		72,059
Income from operations before
interest income and income taxes		2,693		1,382
Interest income, net		702		1,053
Income before income taxes		3,395		2,435
Income tax expense		974		(63)
Equity investment loss		(1)		(1,487)
Net income	$	2,420	$	1,011
Net income per common share:
Basic	$	0.16	$	0.06
Diluted	$	0.16	$	0.06
Weighted average number of
common shares:
Basic		15,024		16,533
Diluted		15,116		16,662
	Three Months Ended
Segment Information:	March 31,
	2020		2019
Revenues:
American Public Education, Inc.	$	67,094	$	65,721
Hondros College of Nursing	$	7,539	$	7,747
Intersegment Elimination1	$	(17)	$	(27)
Income (loss) from operations before
interest income and income taxes:
American Public Education, Inc.	$	3,577	$	7,522
Hondros College of Nursing	$	(885)	$	(6,146)
Intersegment Elimination1	$	1	$	6
1.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.

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 three months ended March 31, 2020 and 2019:
(In thousands, except per share data)
	Three Months Ended March 31,
	2020				2019
	$		Per Share		$		Per Share
Net income:	$	2,420	$	0.16	$	1,011	$	0.06
Add adjustments:
Impairment of goodwill		—		—		5,855		0.35
Tax effect of the non-GAAP adjustment		—		—		(1,615)		(0.10)
Adjusted net income:	$	2,420	$	0.16	$	5,251	$	0.32
Weighted average number of diluted
common shares outstanding:		15,116			16,662

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

American Public Education Inc . 1 Purpose Made Possible First Quarter 2020 Results | May 11, 2020 Presented By Angela Selden President and CEO Richard Sunderland, CPA Executive VP and CFO

American Public Education Inc . 2 The function of education is to teach one to think intensively and to think critically. Intelligence plus character – that is the goal of true education. Martin Luther King Safe Harbor Statement 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 registrations, enrollments, expected revenues, expenses and earnings, and plan s with respect to recent, current and future initiatives (including our marketing initiative, efforts to stabilize and grow Hondros College of Nursing, and information technology replacements and upgrades), investments and partnerships, and the future impacts of and the Company’s response to the COVID - 19 pandemic. 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, Quarterly Report on Form 10 - Q for the period ended March 31, 20 20, and other filings with the SEC, including risks related to the COVID - 19 pandemic. 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 .3 Grow the Core Business. New and total net course registrations at APUS increased year - over - year in each primary funding category, except FSA. In addition, net course registrations by new students utilizing TA increased year - over - year in each military branch, excluding the Navy. APUS will launch a BS in Data Science, BS in Computer Science and MEd in Higher Education Administration, as well as 10 new associate's degree programs, for enrollment starting in July. First Quarter Results & Priorities o Enhance the Student Experience. APUS continued to rollout its cloud - based LMS and plans to complete a full implementation of the LMS and a new CRM by early 2021. o Elevate Affordability Message. APUS launched a new marketing campaign elevating our message of affordability and ROI for learners. • Stabilize and Grow HCN. New student enrollment at HCN increased 31% year - over - year reflecting continued progress on the institution’s enrollment recovery plan. In April, classes started remotely for HCN’s new Indianapolis Campus. 40.8% 22.5% 22.9% 13.8% TA FSA VA Other %Change(Y/Y) TA +4.1% Other +2.7% VA +1.4% FSA - 7.3% Total +0.5% APUS Net Course Registrations by Primary Funding Source: Three Month Ending March 31, 2020

American Public Education Inc . 4 Our COVID - 19 Response • Business Continuity Plan. APUS and HCN employees have transitioned to nearly 100% remote work. We believe we are well positioned for stay - at - home/virtual work environment. • Health/Safety of Employees & Students. Launched several hardship leave and flexible scheduling policies for employees. • HCN Operational Changes. HCN campuses remain open for labs and advising, although health screenings are required before entry. Aided by APUS expertise, HCN temporarily transitioned nearly all courses to an online format. • Strong Liquidity. APEI reported $197M in cash and equivalents, no long - term debt. • Reliability, Security & Scalability. IT department well prepared with critical services operating effectively and focused on the security of our tried - and - tested learning platform which has the capacity to serve more students. • Momentum2020. APUS announced $ 20M in scholarships for up to 20,000+ visiting students whose studies have been disrupted by COVID - 19 . We believe the student experience will continue without significant interruption 4 Affordability public health first responders military heritage strong balance sheet accessibility flexibility public safety grow core business online nursing social responsibility we believe the student experience will continue without significant interruption

American Public Education Inc . 5 $74.6M Consolidated Revenue $0.16/ Share GAAP EPS Diluted $0 Long - Term Debt $196.8M Cash and Equivalents • Consolidated revenue increased by 1.6% to $74.6 million, compared to $73.4 million in the same period of 2019. • Net income of $2.4 million, or $0.16 per diluted share, compared to net income of $1.0 million, or $0.06 per diluted share, in the prior year period. The first quarter of 2019 includes non - cash expense of $5.9 million associated with a reduction in the carrying value of goodwill for the Company’s HCN Segment. • Total cash and cash equivalents as of March 31, 2020 were approximately $196.8 million, compared to $202.7 million as of December 31, 2019 . • We repurchased 547,563 shares of common stock for approximately $13.6 million. At March 31, 2020, there remains $8.4 million available under our share repurchase authorization. First Quarter 2020 Financial Summary

American Public Education Inc . 6 APEI Outlook Second Quarter 2020 Approximate Y/Y Change APUS Net course registrations 1 by new students +8% to + 12 % APUS Net course registrations 1 +6% to + 10 % HCN New student enrollment 2 +56% HCN Student enrollment 2 +14% APEI Consolidated revenue +8% to +12% APEI Consolidated net income per share $ 0.20 to $ 0.25 These statements are based on current expectations. These statements are forward - looking and actual results may differ materially. 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. 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.

American Public Education Inc . 7 Three Months Ended March 3 1 , 2020 2 01 9 COSTS AND EXPENSES Instructional costs and services 39.2 % 38.0 % Selling and promotional 2 4.4 % 20.5 % General and administrative 28.1 % 26.0 % Loss on disposals of long - lived assets 0.2% 0.2% Impairment of goodwill — 8.0% Depreciation and amortization 4.5 % 5.5 % Total costs and expenses 96.4 % 98.2 % Appendix

American Public Education Inc . 8 Thank You

EX-99.3

Exhibit 99.3

97% APUS ALUMNI SURVEYED Respondents indicated that APUS programs met their overall expectations.2 A 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). 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. Chris Symanoskie, IRC, Vice President, Investor Relations 703-334-3880 or csymanoskie@apei.com 1. APUS, 2018 1-year Alumni Survey 2. APUS, 2017 End of Program Survey MARCH 2020 TICKER: APEI EXCHANGE: NASDAQ Total Assets (in thousands) Net Cash Provided by Operating Activities (in thousands) Revenue (in thousands) Net Income Attributable to Common Stockholders (in thousands) 45+ HCN RELATIONSHIPS with healthcare employers 96K+ APUS ALUMNI 6K+ HCN ALUMNI 95% APUS ALUMNI SURVEY Respondents would recommend AMU/APU to a friend or colleague.1 2019...................$286,270 2018...................$297,687 2017...................$299,248 2016...................$313,139 2019...................$25,639 2018...................$21,121 2017...................$24,155 2016...................$32,414 2019...................$359,395 2018...................$370,958 2017...................$399,038 2016...................$315,620 2019...................$38,370 2018...................$44,179 2017...................$47,938 2016...................$56,014

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 are currently on an approved leave of absence, who are currently in class or have completed a course within the past 12 months. Excludes students in doctoral programs. APUS Student Enrollment as of March 31, 2020, includes 1,899 students whose last 8-week course started 1/7/2019 and ended in early March 2019. 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. Enrollment by School5 Enrollment by Degree Level5 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). 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 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 For the three months ended March 31, 2020 2019 % Change Net Course Registrations by New Students 10,100 10,100 0% Net Course Registrations 84,800 84,300 +1% As of March 31, 2020 2019 % Change APUS Student Enrollment2 82,800 81,200 +2% At-A-Glance5 39% 13% 23% 25% TA Bachelor’s Security & Global Sudies Science, Technology, Engineering & Math Education Arts & Humanities Health Science Business Master’s Associate’s All Others VA FSA Other 59% 9% 17% 15% 24% 13% 23% 16% 22% 2% Enrollment and Registrations1 Registrations by Primary Funding Source For the year ended December 31, 2019

1. 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. 2. Tuition for alumni of HCN’s Practical Nursing program is $23,790. 3. For the twelve months ended December 31, 2019. Hondros College of Nursing 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 March 31, 2020 2019 % Change New Student Enrollment 444 340 +31% Total Student Enrollment 1,570 1,730 -9% Approximate Cost (Tuition & Fees) of Degree Completion Practical Nursing $19,700 Associate Degree in Nursing $28,500 Alumni tuition is $24,5222 Student Enrollment1 At-A-Glance3 ¢ Avg. Age of Students: 30 years ¢ Gender Ratio: 93% female / 7% male ¢ Avg. Class Size: 15 students Graduates3 ¢ 6,000+ alumni Enrollment by Program3 For the full year ended December 31, 2019. Licensed Practical Nurse Associate’s Degree in Nursing RN—Bachelor of Science in Nursing (Discontinued) 54% 44% 2%