American Public Education Inc (APEI) 2024 Q2 法說會逐字稿

Hello, and welcome to the American Public Education, Inc. Second Quarter 2024 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions)

您好，歡迎參加美國公共教育公司 2024 年第二季財報電話會議。所有線路均已靜音，以防止任何背景噪音。演講者發言後，將進行問答環節。（操作員說明）

I would now like to turn the conference over to Brian Prenoveau, Investor Relations. You may begin.

我現在想將會議交給投資人關係部門的布萊恩‧普雷諾沃 (Brian Prenoveau)。你可以開始了。

Thank you, Sarah, and good afternoon, everyone. Welcome to American Public Education's conference call to discuss second quarter 204 results. Joining me on the call today are Angela Selden, President, and Chief Executive Officer; Rick Sunderland, Executive Vice President, and Chief Financial Officer; Steve Somers, Senior Vice President, Chief Strategy and Corporate Development Officer.

謝謝莎拉，大家下午好。歡迎參加美國公共教育電話會議，討論第二季 204 的結果。今天和我一起參加電話會議的還有總裁兼執行長安吉拉‧塞爾登 (Angela Selden)；瑞克‧桑德蘭 (Rick Sunderland)，執行副總裁兼財務長； Steve Somers，資深副總裁、首席策略和企業發展長。

Materials for the call today are available in the Quarterly Reports section of APEI's website. Statements made during this conference call and in any accompanying presentation regarding APEI and its subsidiaries that are not historical facts maybe considered forward-looking statements based on current expectations, assumptions, estimates and projections.

今天電話會議的資料可在 APEI 網站的季度報告部分取得。在本次電話會議以及任何隨附的有關 APEI 及其子公司的簡報中所作的非歷史事實的陳述可能被視為基於當前預期、假設、估計和預測的前瞻性陳述。

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.

前瞻性陳述存在風險和不確定性，可能導致實際結果與此類陳述明示或暗示的結果有重大差異。

Forward-looking statements may sometimes be identified by words like anticipate, believe, seek, could, estimate, expect, can, may, plan, potentially, project, should, will, would and similar or opposite work.

前瞻性陳述有時可以用「預期」、「相信」、「尋求」、「可能」、「估計」、「期望」、「可以」、「可能」、「計劃」、「潛在」、「項目」、 「應該」、「將」、「將會」以及類似或相反的字詞來辨識。

Forward-looking statements include, without limitation, statements regarding expectations for registrations and enrollments, revenue, earnings and adjusted EBITDA and other earnings guidance, repositioning Rasmussen University for growth, change in market demands and our ability to satisfy such demand and other company initiatives, including with respect to future competition and demand and cost-saving efforts.

前瞻性陳述包括但不限於有關註冊和入學預期、收入、收益和調整後的EBITDA 及其他收益指引、拉斯穆森大學的成長重新定位、市場需求變化以及我們滿足此類需求和其他公司舉措的能力的聲明，包括未來的競爭和需求以及節省成本的努力。

This presentation contains references to non-GAAP financial information. A reconciliation between the non-GAAP financial measures we use and the most directly comparable GAAP measures is located in the appendix to today's presentation and in the earnings release.

本簡報包含對非公認會計準則財務資訊的引用。我們使用的非公認會計原則財務指標與最直接可比較的公認會計原則指標之間的調節表位於今天簡報的附錄和收益發布中。

Management believes that the presentation of non-GAAP financial information provides useful supplemental information to investors regarding its results of operations and should be -- and should only be considered in addition to and not as a substitute or superior to any measure of financial performance prepared in accordance with GAAP.

管理層認為，非公認會計原則財務信息的呈現為投資者提供了有關其經營業績的有用補充信息，並且應該並且只應被視為補充，而不是替代或優於任何財務業績衡量標準。會計原則。

Now, I'd like to turn the call over to APEI's CEO, Angela Selden, Angie. Please go ahead.

現在，我想將電話轉給 APEI 執行長安吉拉·塞爾登 (Angela Selden) 安吉 (Angie)。請繼續。

Thank you, Brian. Good afternoon, and thank you for joining American Public Education's second quarter 2024 earnings call. For those of you new to APEI, our four co-secondary institutions are among the largest in the country in educating adult learners with an emphasis on educating those in service to others, namely new nurses, active duty military, veterans, first responders and the federal workforce.

謝謝你，布萊恩。下午好，感謝您參加美國公共教育 2024 年第二季財報電話會議。對於那些剛接觸 APEI 的人來說，我們的四所中學教育機構是全國最大的成人教育機構之一，重點是教育那些為他人服務的人，即新護士、現役軍人、退伍軍人、急救人員和聯邦勞動力。

On an annual basis, APEI provides online and campus-based postsecondary education and career learning to approximately 125,000 adult learners worldwide. Our mission is to power, purpose, potential and prosperity to those in service to others.

APEI 每年為全球約 125,000 名成人學習者提供線上和校園高等教育和職業學習。我們的使命是為那些為他人服務的人提供力量、目標、潛力和繁榮。

On today's call, we will cover in more detail the following good news highlight. First, in Q2 2024, this marked the seventh consecutive quarter where APEI's adjusted EBITDA has met or exceeded guidance. Overall, APEI revenue grew 3.9% year-over-year to $152.9 million.

在今天的電話會議上，我們將更詳細地介紹以下好消息。首先，2024 年第二季度，這標誌著 APEI 的調整後 EBITDA 連續第七個季度達到或超過指導水準。整體而言，APEI 營收年增 3.9%，達到 1.529 億美元。

We saw a significant improvement in APEI's adjusted EBITDA, which grew 24% to $10.9 million, primarily driven by year-over-year operating expense -- at both Rasmussen and APEI corporate. Adjusted EBITDA margin expanded by 118 basis points to 7.2% when compared to 2Q 2023.

我們看到 APEI 的調整後 EBITDA 顯著改善，成長了 24% 至 1,090 萬美元，這主要是由 Rasmussen 和 APEI 公司的同比營運費用推動的。與 2023 年第二季相比，調整後 EBITDA 利潤率擴大了 118 個基點，達到 7.2%。

Next, I'm pleased to report that Rasmussen has achieved its first year-over-year positive revenue and enrollment quarter since our acquisition in 2021 and as we had signaled earlier this year. And finally, we are reiterating our full year guidance of revenue between $620 million and $630 million in revenue and adjusted EBITDA between $60 million and $70 million.

接下來，我很高興地向大家報告，自 2021 年收購以來，拉斯穆森首次實現了同比正收入和入學人數季度，正如我們今年早些時候所表示的那樣。最後，我們重申全年營收指引為 6.2 億至 6.3 億美元，調整後 EBITDA 為 6,000 萬至 7,000 萬美元。

Now I'd like to provide more detail about the results and trajectory of our education units, starting first with Rasmussen. I'm very pleased with the progress we have made to stabilize and put Rasmussen back on a trajectory for revenue and enrollment growth and positive EBITDA.

現在我想提供有關我們教育部門的成果和軌蹟的更多詳細信息，首先從拉斯穆森開始。我對我們在穩定並使拉斯穆森重回收入和入學人數增長以及正 EBITDA 的軌道方面所取得的進展感到非常高興。

Second quarter enrollments, which we shared in our last earnings call were 13,600, down just 2%. More importantly, third quarter enrollments, which we are sharing for the first time today, grew slightly on a year-over-year basis to 13,500 students, powered by double-digit growth in our Nursing and Health Sciences, online programs and is the positive turn in the business towards which we've been working.

我們在上次財報電話會議上分享的第二季入學人數為 13,600 人，僅下降了 2%。更重要的是，我們今天首次分享的第三季入學人數同比略有增長，達到 13,500 名學生，這得益於我們的護理和健康科學、在線課程的兩位數增長，這是積極的交出我們一直致力於的業務。

This is particularly noteworthy as Rasmussen decided to suspend new enrollment in its two Wisconsin campuses, which operate in small markets, while it continues to optimize the -- campus footprint to improve profitability and to strengthen margins.

這一點尤其值得注意，因為拉斯穆森決定暫停其威斯康辛州兩個校區的新招生，這兩個校區在小型市場中運營，同時繼續優化校區佔地面積，以提高盈利能力並提高利潤率。

While we don't typically report starts, I think it's important to note that start growth was nearly 10% in the quarter and reflected positive year-over-year start growth in both Rasmussen online and Rasmussen campus portions of the business.

雖然我們通常不會報告開工率，但我認為值得注意的是，本季度的開工率增長了近10%，反映出拉斯穆森在線業務和拉斯穆森園區業務部分的同比開工率正增長。

The continued momentum in enrollment also corresponds with growth in revenue, where Rasmussen revenue was up 2%, which is also the first time since APEI's acquisition and is indicative of the path to continued growth and profitability.

入學人數的持續增長也與收入的增長相對應，拉斯穆森的收入增長了 2%，這也是自 APEI 收購以來的首次增長，這表明了持續增長和盈利的道路。

EBITDA for the Rasmussen segment was negative in the quarter, with the loss narrowed to minus $4.7 million from minus $7.1 million in the prior year period. In conjunction with the expected growth in enrollments in the second half, we continue to expect Rasmussen to move into positive EBITDA territory in the fourth quarter of 2024, which sets us up for a much stronger profit picture in 2025.

本季拉斯穆森部門的 EBITDA 為負，虧損從去年同期的負 710 萬美元收窄至負 470 萬美元。結合下半年入學人數的預期成長，我們繼續預期拉斯穆森將在 2024 年第四季實現正 EBITDA，這為我們在 2025 年實現更強勁的利潤前景奠定了基礎。

In terms of student outcomes, we again produced strong NCLEX pass rates in the second quarter, where 22 of 25 programs are meeting the required thresholds year-to-date.

就學生成績而言，我們在第二季度再次取得了強勁的 NCLEX 通過率，今年迄今為止，25 個項目中有 22 個項目達到了要求的門檻。

Now I'd like to turn our attention to APEI's online university, serving military and veterans, APUS. In 2Q 2024, overall net course registrations increased 1.7% year-over-year, reflecting the strong retention of returning students. Revenue at APUS was higher due to the overall growth in registrations as well as higher average revenue per registration from last year's mid tuition and fee increases.

現在我想把注意力轉向 APEI 的線上大學，為軍人和退伍軍人服務，APUS。2024 年第二季度，整體課程淨註冊量年增 1.7%，反映出回國學生的強勁留任率。APUS 的收入較高是由於註冊量的整體成長以及去年中期學雜費上漲帶來的每次註冊平均收入的增加。

As APUS has invested in 2024 to strengthen its online curriculum, implement a faculty pay increase for part-time faculty, invest in IT infrastructure optimization and better align its marketing spend, 2Q EBITDA margin was slightly lower year-over-year.

由於 APUS 在 2024 年投資加強其線上課程、實施兼職教師加薪、投資 IT 基礎設施優化以及更好地調整行銷支出，因此第二季 EBITDA 利潤率比去年同期略有下降。

Looking ahead to the third quarter, we would expect EBITDA margins at APUS to be similar given those same factors. At Hondros, as previously reported, 2Q 2024 enrollment remains strong. We also saw growth continue in 3Q 2024, with enrollment increasing more than 10% year-over-year to 3,100 students, even against a strong 17% comp a year ago.

展望第三季度，考慮到相同的因素，我們預計 APUS 的 EBITDA 利潤率將相似。正如先前報導的那樣，Hondros 2024 年第二季的入學人數依然強勁。我們也看到 2024 年第三季持續成長，入學人數年增超過 10%，達到 3,100 名學生，即使一年前的成長率為 17%。

Demand remained strong for both the PN and ADN nursing programs with the new Detroit campus performing very well. Legacy campus also contributed to growth, including Indianapolis, where we still operate with enrollment cap as a new program despite exceptional NCLEX pass rates.

PN 和 ADN 護理課程的需求仍然強勁，底特律新校區表現良好。傳統校區也為成長做出了貢獻，包括印第安納波利斯，儘管 NCLEX 的通過率很高，但我們仍然將招生上限作為新項目進行運作。

Starts and Hondros remain robust, and we continue to be pleased with the growth we are seeing. In 3Q '24, Hondros has relocated one of its Ohio campuses and has experienced some unexpected infrastructure setbacks in that location, which we expect will result in some temporary but limited impact to enrollment at that one location.

Starts 和 Hondros 仍然強勁，我們對所看到的成長仍然感到滿意。2024 年第三季度，Hondros 搬遷了其俄亥俄州校區之一，並在該地點經歷了一些意想不到的基礎設施挫折，我們預計這將對該地點的入學造成一些暫時但有限的影響。

Overall, with the stabilization of enrollment and continued improvement in EBITDA at Rasmussen, at APEI, we are now delivering positive growth in revenue, adjusted EBITDA and margins on a consolidated basis.

總體而言，隨著 Rasmussen 和 APEI 入學人數的穩定和 EBITDA 的持續改善，我們現在在合併基礎上實現收入、調整後 EBITDA 和利潤率的正增長。

Before turning the call over to Rick Sunderland, APEI's CFO, I'd like to frame where we are as an enterprise and provide some specificity as to where we're headed. With the stabilization of Rasmussen well underway, including line of sight to continued enrollment and revenue growth from that unit -- we see margins at Rasmussen has been shifting from negative to positive in the fourth quarter, setting the stage for 2025 and beyond.

在將電話轉給 APEI 財務長 Rick Sunderland 之前，我想先介紹一下我們作為一家企業的現狀，並具體說明我們的發展方向。隨著拉斯穆森的穩定工作順利進行，包括該部門繼續招生和收入增長的視線，我們看到拉斯穆森的利潤率在第四季度已從負轉為正，為2025 年及以後奠定了基礎。

Rasmussen also expects to expand its campus footprint for the first time in over five years. Once the Department of Education growth restrictions are lifted, which will allow us to expand our impact in addressing the large demand for nursing and other clinical roles in our overstretched health care system.

拉斯穆森也預計五年多來首次擴大校園足跡。一旦教育部的成長限制取消，這將使我們能夠擴大我們的影響力，以滿足我們不堪重負的醫療保健系統中對護理和其他臨床角色的巨大需求。

We fundamentally believe in our vision that education can transform lives, advance careers, and improve communities. Our four education units were built for service-minded students, offering accessible and affordable higher education and training across a diverse range of subjects.

我們從根本上相信我們的願景：教育可以改變生活、促進職業發展和改善社區。我們的四個教育單位專為具有服務意識的學生而建，提供方便且負擔得起的跨學科的高等教育和培訓。

At APEI, we have carved out distinctive market position. American Military University or AMU is the number one provider of higher education to the US military and has been named the top choice nationwide for veterans using their GI Bill benefits.

在 APEI，我們已經確立了獨特的市場地位。美國軍事大學（AMU）是美國軍隊第一大高等教育機構，並被評為全國退伍軍人使用《退伍軍人權利法案》福利的首選大學。

Hondros College of Nursing focuses on educating pre-licensure nursing students at a campuses and is the number one provider of pre-licensure PN education in the state of Ohio. Both Hondros and Rasmussen continue to tackle the chronic nursery shortage by graduating thousands of new nurses each year where the demand for nurses is expected to grow significantly to $3.3 million in 2031, an increase of 195,000 and an additional 203,000 job openings each year when retirements and workforce exits are factored in.

洪德羅斯護理學院專注於在校園內教育執照前護理學生，是俄亥俄州執照前 PN 教育的第一提供者。Hondros 和Rasmussen 繼續解決長期護士短缺問題，每年培養數千名新護士，預計到2031 年，對護士的需求將大幅增長至330 萬美元，增加195,000 人，每年退休和退休後還會增加203,000 個職位空缺。

Overall, higher education remains a critical accelerator for anyone seeking employment in the US with an increasing amount of working adult students driving the higher education market, which is expected to reach approximately $173 billion by 2030.

總體而言，高等教育仍然是任何在美國尋求就業的人的關鍵加速器，越來越多的在職成人學生推動高等教育市場，預計到 2030 年將達到約 1,730 億美元。

We are proud that APEI's affordable, learn to earn focus enables students to experience a strong lifelong return on their educational investment.

我們感到自豪的是，APEI 的經濟實惠、學習賺錢的理念使學生能夠在其教育投資中獲得豐厚的終身回報。

With that, let me turn the call over to APEI's CFO, Rick Sunderland.

接下來，讓我將電話轉給 APEI 的財務長 Rick Sunderland。

Thank you, Angie. Total revenue in the second quarter was $152.9 million, up $5.7 million or 3.9% from the prior period. Second quarter revenue growth was driven by increased revenue at APUS, Hondros and Rasmussen, partially offset by a revenue decline at graduate school, which was approximately 1 million less than our guidance.

謝謝你，安吉。第二季總營收為 1.529 億美元，比上一季增加 570 萬美元，成長 3.9%。第二季營收成長是由 APUS、Hondros 和 Rasmussen 的收入增加推動的，但研究生院的收入下降部分抵消了這一下降，研究生院的收入比我們的指導值少了約 100 萬。

Total cost and expenses in the second quarter decreased $61.8 million or 29.1% compared to the second quarter of 2023, which included a non-cash impairment charge of $64 million to reduce the carrying value of RE segment, goodwill and intangible assets and the corresponding tax impact.

與2023 年第二季相比，第二季的總成本和費用減少了6,180 萬美元，即29.1%，其中包括6,400 萬美元的非現金減損費用，以減少再生能源部門的帳面價值、商譽和無形資產以及相應的稅務影響。

Cost and expenses for the second quarter as compared to the prior period, excluding loss on leases, severance costs and information technology transition services costs in 2024 and goodwill and intangible asset impairment charges in 2023, increased $0.7 million to primarily to increases in other technology and marketing expenses.

與上一季相比，第二季的成本和支出（不包括2024 年的租賃損失、遣散費和資訊科技過渡服務成本以及2023 年的商譽和無形資產減損費用）增加了70 萬美元，主要是由於其他技術和支出的增加行銷費用。

Second quarter diluted loss for common share improved significantly and was a loss of $0.06 compared to an adjusted net loss of $0.25 in the prior quarter, which excludes the $64 million goodwill and intangible asset impairment.

第二季普通股攤薄虧損顯著改善，虧損為 0.06 美元，而上一季調整後淨虧損為 0.25 美元，其中不包括 6,400 萬美元的商譽和無形資產減損。

For the quarter, adjusted EBITDA increased 24% to $10.9 million compared to $8.8 million in the prior period. The second quarter results were at the high end of guidance and represented an adjusted EBITDA margin of 7.2% as compared to 6% in the prior quarter.

本季調整後 EBITDA 成長 24%，達到 1,090 萬美元，上一季為 880 萬美元。第二季業績處於指導上限，調整後 EBITDA 利潤率為 7.2%，而上一季為 6%。

At APUS, second quarter revenue increased 4.7% as compared to the prior year to $77 million due to a 1.7% increase in net course registrations driven by an increase in registrations by military-affiliated students utilizing VA benefits and tuition and fee increases in the second and third quarters of 2023.

APUS 第二季度營收比上年增長 4.7%，達到 7,700 萬美元，原因是第二季度利用 VA 福利的軍人學生註冊量增加以及學雜費增加，導致淨課程註冊量增長 1.7%和2023 年第三季度。

In total, EBITDA margin at APUS was 25% compared to 28% in the prior year. The change in margin was primarily due to increased information technology employee compensation and advertising costs.

整體而言，APUS 的 EBITDA 利潤率為 25%，而前一年為 28%。利潤率的變化主要是由於資訊科技員工薪資和廣告成本的增加。

At Rasmussen, second quarter revenue was $53 million, an increase of 2% compared to the prior year due to an increase in tuition in the first quarter of 2024, partially offset by a 2.2% decrease in total student enrollment.

拉斯穆森第二季度營收為 5,300 萬美元，較上年增長 2%，原因是 2024 年第一季學費上漲，但部分被學生入學總數下降 2.2% 所抵消。

The decline in total student enrollment was driven by an 8.8% decrease in on-ground enrollment, partially offset by a 4.2% increase in online enrollment, which has a lower revenue for students as compared to the prior year period.

學生總入學人數下降的原因是線下入學人數減少了 8.8%，但線上入學人數增加 4.2% 部分抵消了線上入學人數的增長，而線上入學人數與去年同期相比，學生收入較低。

As Nancy mentioned, the year-over-year enrollment declines have narrowed in each of the past five quarters, and third quarter total enrollment is up slightly. In the second quarter, Rasmussen's EBITDA improved to a loss of $4.7 million compared to an EBITDA loss in the prior period of $7.1 million, representing an approximate 33% year-over-year improvement after adjusting for last year's goodwill impairment this year's thoughts on leases.

正如南希所提到的，過去五個季度的入學人數同比降幅均有所收窄，第三季的入學總數略有上升。第二季度，拉斯穆森的 EBITDA 虧損改善至 470 萬美元，而上一期的 EBITDA 虧損為 710 萬美元，在調整去年的商譽減損後，較去年同期改善約 33%。

At Hondros, second quarter revenue was up 15% to $16.4 million as compared to the prior year period due to continued enrollment growth and the 2023 tuition increase.

由於入學人數持續成長和 2023 年學費上漲，Hondros 第二季度營收較上年同期成長 15%，達到 1,640 萬美元。

For the quarter, Hondros total enrollment grew 9.4% to approximately 3,300 students, the third consecutive record-setting quarter for enrollment. For the quarter, Hondros EBITDA loss was a loss of $0.4 million compared to positive EBITDA of $0.1 million in the prior year period.

本季度，洪德羅斯總入學人數成長 9.4%，達到約 3,300 名學生，連續第三個季度創下入學人數紀錄。本季度，Hondros EBITDA 虧損 40 萬美元，而去年同期 EBITDA 為正 10 萬美元。

Revenue in graduate school, included in Corporate and Other was $6.5 million, compared to $7.5 million in the prior year period. For the quarter, graduate school EBITDA loss was $0.7 million, compared to positive EBITDA of $0.8 million in the prior year period.

研究生院的收入（包括企業和其他）為 650 萬美元，而去年同期為 750 萬美元。本季度，研究生院 EBITDA 損失為 70 萬美元，而去年同期的 EBITDA 為正 80 萬美元。

At June 30, 2024, total cash, cash equivalents and restricted cash was $156.2 million, an increase of $11.8 million from year-end 2023. For the six months ended June 30, 2024, cash flow from operations increased 16% to $33.2 million compared to the prior year.

截至2024年6月30日，現金、現金等價物及限制性現金總額為1.562億美元，較2023年底增加1,180萬美元。截至 2024 年 6 月 30 日的六個月，營運現金流較上年增長 16% 至 3,320 萬美元。

CapEx for the first six months was $11.4 million and free cash flow defined as adjusted EBITDA less CapEx was $16.6 million compared to $9.2 million a year ago. Principal on API's term loan at June 30 was $96 million with unrestricted cash of $130 million, API continues to be net cash positive.

前六個月的資本支出為 1,140 萬美元，自由現金流（定義為調整後 EBITDA 減去資本支出）為 1,660 萬美元，而去年同期為 920 萬美元。截至 6 月 30 日，API 定期貸款本金為 9,600 萬美元，其中無限制現金為 1.3 億美元，API 繼續保持淨現金正值。

Additionally, there are no borrowings under API's $20 million revolving credit facility, which remains fully available.

此外，API 的 2000 萬美元循環信貸額度下沒有任何借款，該額度仍然完全可用。

Turning now to the third quarter 2024 outlook. APUS total net course registrations are expected to be flat to slightly down compared to the prior year (technical difficulty) between 90,500 to 92,300 registrations. We believe the softness in third quarter APUS registration is largely attributable to changes in marketing spend in late 2023, which typically has a two to three-quarter lag in registration numbers. Appropriate adjustments are being made to marketing spend to correct this decline.

現在轉向 2024 年第三季展望。APUS 課程淨註冊總數預計與前一年（技術難度）持平或略有下降，註冊人數為 90,500 至 92,300 人。我們認為，第三季 APUS 註冊量疲軟主要歸因於 2023 年末行銷支出的變化，註冊數量通常有兩到四分之三的延遲。我們正在對行銷支出進行適當調整，以糾正這種下降趨勢。

At Rasmussen and Hondros, third quarter student enrollments are actual because of the quarterly starts of these schools. At Rasmussen, third quarter on ground enrollment decreased minus 5% to approximately 6,030 students, while total online student enrollment increased 4.7% year-over-year to approximately 7,440 students for an aggregate enrollment of approximately 13,500 students.

在拉斯穆森和洪德羅斯，第三季的學生入學人數是實際的，因為這些學校每季開學。在拉斯穆森，第三季度的地面入學人數減少了負5%，至約6,030 名學生，而線上學生總入學人數同比增長4.7%，至約7,440 名學生，總入學人數約為13,500 名學生。

This represents a slight increase when compared to the third quarter of 2023 and is the first quarter of positive year-over-year enrollment growth since the acquisition.

與 2023 年第三季相比略有成長，也是自收購以來入學人數較去年同期正成長的第一季。

At Hondros, third quarter total student enrollment increased 10% year-over-year to approximately 3,100 students. In the third quarter of 2024, consolidated revenue is expected to be between $152 million and $155 million. The company expects net income to common shareholders to be between a loss of $1.2 million and income of $1 million or between a loss of $0.06 and income of $0.05 per diluted share.

在 Hondros，第三季學生總入學人數年增 10%，達到約 3,100 名學生。2024 年第三季度，合併收入預計在 1.52 億美元至 1.55 億美元之間。該公司預計普通股股東的淨利潤將在稀釋後每股虧損 120 萬美元至收入 100 萬美元之間，或虧損 0.06 美元至收入 0.05 美元之間。

Adjusted EBITDA is expected to be between $9 million and $12 million in the third quarter of 2024. Our full year guidance is unchanged with anticipated consolidated full year 2024 revenue in a range of $620 million to $630 million. We expect our adjusted EBITDA to be between $60 million to $70 million in the full year.

2024 年第三季調整後 EBITDA 預計在 900 萬美元至 1,200 萬美元之間。我們的全年指引保持不變，預計 2024 年全年合併收入在 6.2 億美元至 6.3 億美元之間。我們預計全年調整後的 EBITDA 將在 6,000 萬至 7,000 萬美元之間。

The second and third quarters tend to be seasonally low quarters with a notable increase in adjusted EBITDA in the fourth quarter especially Rasmussen continued ramping in the fourth quarter.

第二季和第三季往往是季節性低季，第四季調整後 EBITDA 顯著成長，尤其是拉斯穆森第四季持續成長。

I will now pass it back to Angie to offer some closing remarks, after which we will begin our question-and-answer session. Angie?

我現在將其傳回給安吉，以提供一些結束語，之後我們將開始問答環節。安吉？

Thank you, Rick. During the quarter, we continued to execute our strategic initiatives to grow enrollment at APUS and stabilize and increase profitability at our other units. We're further encouraged by the performance at Rasmussen as enrollment numbers have stabilized and had the first year-over-year improvement since our acquisition.

謝謝你，瑞克。本季度，我們繼續執行策略性舉措，以增加 APUS 的入學人數，並穩定和提高其他部門的獲利能力。拉斯穆森的表現進一步鼓舞了我們，因為入學人數已經穩定，並且自我們收購以來首次實現同比改善。

Market fundamentals continue to support our business strategy with increasing growth in higher education and online education markets and significant government education benefits for military investments. With our number one market position in active-duty military investments and focus on high-demand sectors like nursing, we are well positioned to capitalize on this growth.

隨著高等教育和線上教育市場的不斷增長以及政府教育對軍事投資的顯著好處，市場基本面繼續支持我們的業務策略。憑藉我們在現役軍事投資領域的第一市場地位，並專注於護理等高需求產業，我們完全有能力利用這一成長。

As we move ahead in 2024 and continue to execute on our key milestones, I believe that we have built the foundation of a business that can continue to deliver to its students' value to its stakeholders' value and to their community's value for years to come.

隨著我們在 2024 年繼續前進並繼續執行我們的關鍵里程碑，我相信我們已經奠定了一個企業的基礎，可以在未來幾年繼續為學生、利害關係人和社區的價值提供價值。

And with that, I would now like to hand the call back to the operator, to begin our question-and-answer session, Operator?

現在，我想將電話轉回給接線生，開始我們的問答環節，接線員？

Thank you, Angie. (Operator Instructions)

謝謝你，安吉。（操作員說明）

Raj Sharma, B. Riley.

夏爾馬 (Raj Sharma)，B. 萊利 (B. Riley)。

Yes thank you for taking my questions. I wanted to understand a little bit, maybe get some color on Rasmussen. I see the improvement in the enrollment is now almost flat and projected to be almost flat next quarter.

是的，謝謝您回答我的問題。我想了解一點，也許能對拉斯穆森有所了解。我看到入學率的改善現在幾乎持平，預計下個季度也將幾乎持平。

Where can this business -- what can this business do and is capable of specifically not as much in the year-on-year growth from here but really on the EBITDA margins, you're getting -- you have negative 9% this quarter in the EBITDA margins.

這項業務能在哪裡——這項業務能做什麼，有能力具體實現同比增長，但實際上在 EBITDA 利潤率上，你會得到——本季度負 9% EBITDA 利潤率。

What could these get to in the second half and more sorts of longer-term fiscal 2025, 2026 relative to where they were when you purchased Rasmussen or what the original capability of the operation is?

相對於您購買拉斯穆森時的情況，或者該業務的原始能力是什麼，這些在下半年以及 2025 年、2026 年更長期的財年中會產生什麼影響？

Thank you.

謝謝。

Raj, thank you very much, for that question. That's a lengthy question with many component parts to it. So let me start by saying, as we signaled, we believe 2024 is where Rasmussen will turn to positive adjusted EBITDA and we see line of sight to that. We're excited about that.

Raj，非常感謝你提出這個問題。這是一個很長的問題，包含很多組成部分。首先我要說的是，正如我們所暗示的那樣，我們相信 2024 年拉斯穆森將轉向正向調整 EBITDA，我們看到了這一點。我們對此感到興奮。

Several of the things that we believe will have a positive effect on 2025, include the completion of our exiting of the third-party IT agreement with creditors and we expect to see meaningful savings on a full year run rate basis in 2025 as a result.

我們認為，一些事情將對 2025 年產生積極影響，包括完成與債權人退出第三方 IT 協議，我們預計因此將在 2025 年全年運行率基礎上實現有意義的節省。

And certainly as we turn the corner on the enrollment to positive momentum in the fourth quarter and in 2025, we believe that that will have a meaningful improvement in our adjusted EBITDA for each new dollar of revenue, we're now more than covering the fixed cost and that has a very significant effect on our adjusted EBITDA in 2025 and beyond.

當然，隨著我們在第四季度和 2025 年扭轉入學人數的積極勢頭，我們相信，每增加一美元收入，調整後的 EBITDA 將會得到有意義的改善，我們現在不僅僅是覆蓋固定的成本，這對我們2025 年及以後調整後的EBITDA 有非常重大的影響。

We're not presently giving guidance on 2025, but I'll turn it over to Steve with any other comments you'd like to share.

我們目前不會提供 2025 年的指導，但我會將其轉交給 Steve，並附上您想分享的任何其他評論。

Yes, Raj, I'll just add some context around there, right? In the industry in general, nursing schools and school similar assets that operate in the 10%, 15%, and 15%-plus range. We're obviously working to improve that quarter-to-quarter. Angie signaled that we're going to be profitable in terms of EBITDA in the fourth quarter.

是的，Raj，我會在其中添加一些背景信息，對吧？在整個產業中，護理學校和學校的資產相似，營運比例在 10%、15% 和 15% 以上範圍內。顯然，我們正在努力逐季度改進這一點。安吉表示，我們將在第四季實現 EBITDA 獲利。

So, I think it's reasonable to think that over time, we can get to 5% to 10% margins over the next one to two years as you think about us inside the industry, that would be very consistent.

因此，我認為有理由認為，隨著時間的推移，我們可以在未來一到兩年內獲得 5% 到 10% 的利潤率，正如你在行業內部想到的那樣，這將是非常一致的。

And I think as you look forward to the third -- I think you asked about the second half as well, the third quarter and then the fourth quarter, right, we'll still be negative in the third quarter, but on a 2H basis, we would expect it to be positive overall for the second half and the fourth quarter itself.

我認為，當你期待第三季度時，我想你也問了下半年、第三季度，然後是第四季度，對吧，我們在第三季度仍然會出現負數，但在 2H 的基礎上，我們預計下半年和第四季整體上將是正面的。

So, whether that gives you a little bit of context around -- and I think the trend that has been in place for the last 12-plus months is sort of directing in that general zone.

所以，這是否能給你一些背景資訊——我認為過去 12 個多月以來出現的趨勢在某種程度上是在引導這個整體區域。

Got it. And then could you talk a little bit about the APUS enrollment trends? And is this sort of flat to down a little expected? Is that seasonal? And where do you see overall those trends in enrollment?

知道了。那麼您能談談 APUS 的招生趨勢嗎？這種由平轉跌的情況是否符合預期？是季節性的嗎？您如何看待整體入學趨勢？

I'll start, Raj, and then I'll have Rick provide more detail. In Rick's remarks, he did discuss the decision in the fourth quarter of 2023 to dial back investments in marketing in certain segments of APUS and there's a two-quarter lag that we see in terms of those investments turning into enrollment.

拉傑，我先開始，然後讓瑞克提供更多細節。在 Rick 的演講中，他確實討論了 2023 年第四季度縮減 APUS 某些細分市場營銷投資的決定，我們發現這些投資轉化為註冊人數存在兩個季度的滯後。

So, as we approach Q3, we are seeing the effect of that reduction in marketing spend, which has since been course-corrected and we expect in the future quarters for that enrollment momentum to return. So, Rick, I'm going to turn it over to you for more detail.

因此，隨著第三季度的臨近，我們看到了行銷支出減少的影響，該支出已得到糾正，我們預計在未來幾個季度，招生勢頭將恢復。所以，里克，我將把它交給你以了解更多細節。

Yes, that's accurate, Raj, and there is that lag. So, I would suggest that if things function as we expect and we expect it will, the course-correction we're making now or have been making recently will play out in the numbers over to a two or three-quarter lag. That's just the way the business functions. We remain strong in my comments, I talked about the strength of the military affiliate. We remain strong in the veterans community and quite frankly, our market share in active--

是的，拉吉，這是準確的，但確實存在滯後。因此，我建議，如果事情按照我們的預期運行並且我們預期會如此，那麼我們現在或最近所做的路線修正將在數字上體現出超過四分之二或四分之三的滯後。這就是企業運作的方式。我們仍然堅持我的評論，我談到了軍事附屬機構的實力。我們在退伍軍人社區中仍然保持著強大的實力，坦白說，我們在現役市場中的份額——

Yes, I think what I'll also say is that the margin optimization efforts that were underway last year help us now understand the sensitivity around marketing spend and so now that we understand that we can be a lot more thoughtful and how we invest our marketing against certain channels and segments going forward. And so we've tested that, and we now know where those foundries are.

是的，我想我還要說的是，去年進行的利潤優化工作幫助我們現在了解了行銷支出的敏感性，因此現在我們了解我們可以更加深思熟慮以及我們如何投資行銷針對未來的某些管道和細分市場。我們對此進行了測試，現在我們知道那些代工廠在哪裡。

And we also are seeing in particular, growing strength in the veterans market. It's something that we've been leaning into and wanting to see momentum build. And so we're quite pleased with the results we're seeing with veterans.

我們也特別看到退伍軍人市場的實力不斷增強。這是我們一直在關注並希望看到勢頭增強的事情。因此，我們對在退伍軍人身上看到的結果非常滿意。

Great. Thank you for answering my questions. That’s very helpful. I'll take it offline. Thank you.

偉大的。感謝您回答我的問題。這非常有幫助。我會把它離線。謝謝。

Okay. Thanks, Raj.

好的。謝謝，拉傑。

(Operator Instructions)

（操作員說明）

Stephen Sheldon, William Blair.

史蒂芬謝爾頓，威廉布萊爾。

Great, team. You have Matt Flynn on for Steven. Thank you for taking my questions. I wanted to start with one on the full year guidance. Wondering if you could talk about some of the factors that would need to play out to push you towards the upper end of the guidance range, particularly for the revenue guide, which seems to assume a decent quarter-over-quarter step-up in the fourth quarter based on the 3Q guide. I know there's some seasonality at play there, but any additional color would be helpful.

太棒了，團隊。你讓馬特·弗林代替史蒂文。感謝您回答我的問題。我想從全年指導開始。想知道您是否可以談談需要發揮作用才能將您推向指導範圍上限的一些因素，特別是收入指南，該指南似乎假設收入季度環比有不錯的增長第四季度基於第三季度指南。我知道那裡有一些季節性因素，但任何額外的顏色都會有幫助。

Yes, I'll turn it over to Rick.

是的，我會把它交給瑞克。

This is Rick. I'll start and then Angie can fill in.

這是瑞克。我先開始，然後安吉可以補充。

You bet.

你打賭。

Well, if you want to push up to that range, things that would have to go favorably would be a quicker, a call it, uptake on the marketing spend at APUS, right? We talked about what has been observed as a typical lag between altering a spend, be it total dollars or allocation among segments and then the resulting improvement in registration. If that accelerates, then, of course, that would push revenue up higher in the range.

好吧，如果你想提高到這個範圍，那麼 APUS 的行銷支出就必須更快地順利進行，對吧？我們討論了改變支出（無論是總金額還是細分市場之間的分配）與由此產生的註冊改善之間的典型滯後現象。如果這種情況加速，那麼，當然，這將推動收入在該範圍內更高。

We're seeing strength at RADCO (technical difficulty) right? We've got to turn a slight improvement year-over-year, and that momentum will continue. And I think Andy commented on the strength of the start numbers, right, which is a leading indicator as it relates to total enrollment, and that strength could accelerate or build on itself to push us up.

我們看到了 RADCO（技術難度）的優勢，對嗎？我們必須同比略有改善，而且這種勢頭將持續下去。我認為安迪評論了起始數字的強度，對吧，這是一個領先指標，因為它與總入學率有關，並且這種強度可以加速或增強自身以推動我們前進。

Then you drop down the Hondros. They've got a new program that they're introducing as a new program. We don't have any observable experience in medical assisting as to how that enrollment pattern will ultimately play out that could go up or go down, right? It's a new program.

然後你就從洪德羅斯掉下來。他們有一個新計劃，正在作為新計劃推出。我們在醫療援助方面沒有任何可觀察到的經驗，無法確定入學模式最終會如何上升或下降，對嗎？這是一個新節目。

And then graduate school, we've got Steve Somers, who's in the room here, he's back. And while it's a smaller piece of the overall enterprises certainly had an impact on the Q2 reported results. And then, of course, the apposite could be true, an uptake of $1 million or two there in the federal workforce who obviously be very helpful against the range. And so I'll pause there and let Angie add to the comments.

然後研究生院，我們有史蒂夫·薩默斯，他就在這個房間裡，他回來了。雖然它只佔整體企業的一小部分，但肯定對第二季報告的結果產生了影響。然後，當然，適當的情況可能是真的，聯邦勞動力中吸收一兩百萬美元，他們顯然對對抗這個範圍非常有幫助。因此，我將在此暫停，讓安吉添加評論。

So I think that's a pretty good synopsis. The last thing I would say is that we passed on price increases certain segments across APUS, Hondros and (technical difficulty) and assuming that those price increases continue to hold without degradation in our student enrollments that will also play favorably in the overall revenue that we would expect for the full year.

所以我認為這是一個非常好的概要。我要說的最後一件事是，我們將APUS、Hondros 和（技術難度）的某些部分的價格上漲轉嫁給我們，並假設這些價格上漲繼續保持不變，而不會降低我們的學生入學率，這也將對我們的整體收入產生有利的影響。

Got it. That's helpful color. Thank you, Angie, and Rick. And then I had another one on NCLEX scores. I imagine this is tougher to call, but do you have any rough estimate on when you might have all of your nursing programs with first time NCLEX pass rates that exceed state nursing board standards.

知道了。這是有用的顏色。謝謝你們，安吉和瑞克。然後我又拿到了一份 NCLEX 分數。我想這很難說，但是您是否粗略地估計了您的所有護理項目何時可以通過首次 NCLEX 通過率超過州護理委員會的標準。

I know you continue to make good progress on that with a variety of initiatives you have underway, but any sense of timing on completely resolving those first time NCLEX pass rate issues at the remaining campuses.

我知道你們透過正在進行的各種舉措繼續在這方面取得良好進展，但完全解決其餘校區的首次 NCLEX 通過率問題的時機是否合理。

Sure. The on campus that we are paying attention to is in Illinois, where we have done a significant amount of renewing of faculty that we're upgrading the curriculum that campus was operating with an older version of the curriculum that was not aligned with the next-gen NCLEX testing. And so, we believe that the turn on NCLEX scores in Illinois will be slower than the two other remaining campuses.

當然。我們關注的校園是在伊利諾伊州，我們在那裡進行了大量的師資更新，我們正在升級校園正在運行的課程，舊版本的課程與下一個版本不符-一代 NCLEX 測試。因此，我們相信伊利諾伊州 NCLEX 分數的轉變將比其他兩個校區慢。

So, we -- but we are incredibly happy with the NCLEX results that were that we're posting now all of our BSN programs, all of them are above the state standards, all but one in our ADN program, which had been an area of challenge for us in the past and two of our PN programs.

所以，我們對 NCLEX 的結果非常滿意，我們現在發布了所有 BSN 計劃，所有這些計劃都高於州標準，除了我們的 ADN 計劃中的一個之外，這一直是一個領域我們過去面臨的挑戰以及我們的兩個PN 計劃。

And so we're just very, very pleased with the incredible turn that Rasmussen demonstrated in terms of improving NCLEX, NCLEX pass rate.

因此，我們對 Rasmussen 在提高 NCLEX、NCLEX 通過率方面所表現出的令人難以置信的轉變感到非常非常滿意。

Matt, this is Steve. Let me just add one more comment to that. If you went back, in terms of the number of programs that are passing today year-to-date 2012, 2025, that is now higher than it was in the prior two years before we acquired the business. So we've obviously made a lot of improvement in the near term, but now we are on a path to a better result on a longer-term basis as well.

馬特，這是史蒂夫。讓我對此再補充一點評論。如果你回顧一下，就 2012 年、2025 年至今通過的計畫數量而言，現在高於我們收購該業務之前的前兩年。因此，我們顯然在短期內取得了很大的進步，但現在我們也正走在長期取得更好結果的道路上。

Perfect. That's great color, and yes, great to see the continued progress there. Thank you.

完美的。那是很棒的顏色，是的，很高興看到那裡的持續進步。謝謝。

Thank you.

謝謝。

Jasper Bibb, Truist Securities.

賈斯柏‧比伯 (Jasper Bibb)，Truist 證券公司。

Hi, everyone. Apologies if anything has been answered already. I joined a little bit late from another call. Just wanted to ask about Rasmussen, I guess, is there any update on the Florida RU campuses from last quarter?

大家好。如果已經回答了任何問題，我們深表歉意。我從另一個電話中加入得有點晚。我只是想問拉斯穆森，佛羅裡達大學上個季度的校園有什麼更新嗎？

And I think there's also potentially a bill in Illinois. I think to help you a bit with the caps you mentioned on the last answer, any change there?

我認為伊利諾伊州也可能有一項法案。我想對您在上一個答案中提到的上限有所幫助，有什麼變化嗎？

Sure. So Jasper, I'm not exactly sure what specifically you mean relative to the Florida campuses. So I'll start with NCLEX results, where we have all program campus combinations, meeting the state standard for the year-to-date measurement period.

當然。賈斯珀，我不太清楚你所說的佛羅裡達校區具體是什麼意思。因此，我將從 NCLEX 結果開始，其中我們擁有所有專案校園組合，符合今年迄今為止測量期間的州標準。

So we're very, very pleased with the incredible turnaround that we've had in NCLEX performance in Florida. Can you repeat the -- if that doesn't answer your question, is there something more specific here you had in mind?

因此，我們對 NCLEX 在佛羅裡達州的表現所取得的令人難以置信的轉變感到非常非常滿意。您能否重複一下—如果這不能回答您的問題，您是否有更具體的想法？

No, no, that's helpful. I think last quarter, there was basically a technical thing where you had a really old cohort that triggered some of those campuses going on formation and it sounded like everything was.

不不不，這很有幫助。我認為上個季度，基本上有一個技術問題，你有一個非常老的群體，觸發了一些校園的形成，聽起來一切都是如此。

Yes. We've been really happy with the results of pushing through and putting every single program campus combination in the green.

是的。我們對推動每個專案校園組合實現綠色化的結果感到非常滿意。

Okay. Great. And second part of the question was, I think there was a bill in Illinois that could give you some relief on -- you mentioned a campus, a little bit longer turnaround plan there. I think that build might have afforded you look more patent to that at the relevant threshold.

好的。偉大的。問題的第二部分是，我認為伊利諾伊州有一項法案可以讓你鬆口氣——你提到了一個校園，那裡有一個更長一點的周轉計畫。我認為這種構建可能會讓你在相關閾值下看起來更專利。

Just kind of curious if there's any update there or that's still kind of in the works through their legislature.

只是有點好奇是否有任何更新，或者立法機關仍在進行中。

Yes, that still remains in place. And so that relief affords us a 2-year measurement period. We certainly aren't going to wait until the end. We're working very aggressively. And as I did mention, I think before you joined the call here, we've done 2 major things in Illinois to accelerate our performance in those campuses, including basically a replacement revitalization of the -- several of the faculty there.

是的，這仍然存在。因此，這種緩解為我們提供了兩年的衡量期。我們當然不會等到最後。我們正在非常積極地工作。正如我所提到的，我認為在您參加這裡的電話會議之前，我們在伊利諾伊州做了兩件主要的事情，以加快我們在這些校園的表現，其中基本上包括對那裡的幾名教職人員進行替代振興。

And importantly, we are modernizing the curriculum Illinois for a technical reason, Board nursing reason, had required us to be operating with a curriculum that was older than the version of curriculum we had been offering in our other campuses.

重要的是，我們正在對伊利諾伊州的課程進行現代化改造，這是出於技術原因，董事會護理原因，要求我們使用比我們在其他校區提供的課程版本更舊的課程。

We were able to work with the Board of Nursing to allow them or have them allow us to modernize that curriculum. So now we are moving that curriculum to the next-gen version, which is a version for the new exam.

我們能夠與護理委員會合作，允許他們或讓他們允許我們使課程現代化。因此，現在我們正在將課程轉移到下一代版本，這是新考試的版本。

And we have a high degree of confidence that the new faculty, the dedicated attention from our nursing leadership and the new curriculum will allow us to see significant improvements in our Illinois campuses in the future.

我們非常有信心，新教師、護理領導層的專注以及新課程將使我們在未來看到伊利諾伊州校園的顯著改善。

All right. That's very helpful. Thanks for taking the questions.

好的。這非常有幫助。感謝您提出問題。

Thank you.

謝謝。

This concludes our question-and-answer session. I'd now like to turn the call back over to Angie for closing remarks.

我們的問答環節到此結束。我現在想將電話轉回給安吉，讓其結束語。

Thank you, operator. I'd like to thank each of you for joining our earnings conference call. We look forward to continuing to update you on our ongoing progress and growth, as we continue our rapid pace of operational execution. If we were unable to answer any questions, please reach out to our IR firm, MZ Group, who would be more than happy to assist.

謝謝你，接線生。我要感謝大家參加我們的收益電話會議。隨著我們繼續快速執行運營，我們期待繼續向您通報我們持續取得的進展和成長。如果我們無法回答任何問題，請聯絡我們的投資者關係公司 MZ Group，他們將非常樂意為您提供協助。