American Public Education, Inc. Completes Acquisition of Rasmussen University

CITY OF CHARLES, W.Va., September 2, 2021 / PRNewswire / – American Public Education, Inc. (Nasdaq: APEI), the parent company of American Public University System (“APUS”) and Hondros College of Nursing (“HCN”), today announced that it has completed the acquisition of Rasmussen University (“Rasmussen”).
With the closing of the acquisition of Rasmussen, APEI almost doubles its turnover to approximately $ 600 million and significantly diversify its sources of income to approximately one-third of military and veteran students, one-third of nursing students, and one-third of adult online learners. The combined entity will serve over 110,000 students and is expected to generate approximately $ 90 million in adjusted EBITDA before synergies.1
Rasmussen is an institution focused on nursing and health care, and collectively with Hondros, APEI is now the largest pre-licensed nursing student educator in the country with nearly 11,000 registrations. On a rolling 12-month basis from June 30, 2021, nursing represented $ 200 million revenues and nearly a third of the total revenues of APEI. Rasmussen adds approximately 8,500 nursing students to the 2,300 nursing students already served by Hondros.
“With our current nursing footprint of 30 campuses in eight states and a comprehensive range of nursing programs, we are well positioned to help address the significant shortage of long-term nurses across the country, at both now and over the next several years. »Declared the President and CEO of APEI Angela Selden. “This acquisition is a very significant step in the ongoing transformation of APEI. We are focused on delivering a high quality education that leads to strong employment and career opportunities for our students at some of the best rates. affordable tuition fees, helping to maximize the return on investment of students on their investment in higher education.
Rasmussen should generate approximately $ 275 million of sales for the whole of 2021. The transaction should generate cost savings of more than $ 5 million within the first 12 months after closing and at least $ 10 million in the second and third years after closing. Under the terms of the purchase agreement for the acquisition of Rasmussen, APEI chose to pay $ 29 million in cash at closing instead of issuing preferred stock to the seller.
Angela Selden added, “We are delighted to welcome Rasmussen’s base of talented employees and executives who have built an institution that not only offers an excellent student experience and strong results and has a student-centered culture that s ‘harmonizes very well with APEI. “
Rasmussen will continue to be led by Tom slagle, who has been CEO since 2010 and has led Rasmussen to focus on nursing and its growth over the past 11 years.
Rasmussen will continue to operate as a separately accredited institution. It is regionally accredited by the Higher Learning Commission (HLC) and offers a full range of degree programs in nursing, health sciences, business, technology, design, education, and forensic studies.
Non-GAAP financial measure (“Adjusted EBITDA”):
This press release contains the non-GAAP financial measures of EBITDA (earnings before interest, taxes, depreciation and amortization) and Adjusted EBITDA (EBITDA less non-cash expenses such as stock compensation and non-cash expenses. recurring). The APEI believes that the use of these metrics is useful as it allows investors to better assess the operating profits and cash generation capabilities of APEI.
Non-GAAP measures should not be considered in isolation or as alternatives to measures determined in accordance with generally accepted accounting principles in United States (GAAP). The main limitation of APPEI’s non-GAAP measures is that they exclude expenses that must be recorded by GAAP. In addition, non-GAAP measures are subject to inherent limitations, as they reflect management’s exercise of judgment as to which expenses are excluded.
APEI presents EBITDA and Adjusted EBITDA as part of its GAAP measures and urges investors to review the reconciliation of net income to EBITDA and Adjusted EBITDA which is included in the table following this release. press (under the heading “2021 Pro Forma GAAP Net Income to EBITDA / Adjusted EBITDA”) and not to rely on a single financial measure to evaluate its activity.
About American Public Education
American Public Education, Inc. (Nasdaq: APEI) is a leading provider of higher education and career-oriented training that provides pathways to employment and career advancement. APEI operates through three wholly owned subsidiaries and provides business services to each. American public university system, which operates through American Military University and American Public University, is the primary educator of military students and active duty veterans and serves approximately 90,000 adult learners around the world. APUS is consistently cited as one of the most affordable universities in United States. Hondros College nursing “Creates new nurses” by training nursing students prior to licensure on its six campuses in Ohio and one in Indiana, and is the largest DNA (RN) and PN (LPN) nurse educator in the state of Ohio. Rasmussen University is a 120-year-old institution serving approximately 18,000 students across its 24 campuses and student service centers in six states and online. It is an institution focused on nursing and health sciences, which also includes schools of business, technology, design, preschool education, and justice studies. APUS and Rasmussen have both achieved the highest level of accreditation and are regionally accredited by the Higher Learning Commission, while Hondros is accredited by the Accreditation Board for Schools of Health Education (ABHES). For more information, visit www.apei.com.
Forward-looking statements
Statements made in this press release regarding APEI or its subsidiaries that are not historical facts are forward-looking statements based on current expectations, assumptions, estimates and projections regarding APEI and the industry. Forward-looking statements may be identified by words such as “anticipate”, “believe”, “seek”, “could”, “estimate”, “expect”, “intend”, “may”, “Plan,” “should,“ “will” and “would.” These forward-looking statements include, but are not limited to, statements regarding the benefits of the Rasmussen University acquisition, expected growth, enrollments and enrollments, income, income and expenses, expected financial results for Rasmussen University, the ability to generate a return on learners’ education investment and plans regarding recent, current and future initiatives.
Forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, among others, the risks associated with the following: the significant transaction and integration costs that APEI has incurred and expects to incur in connection with the acquisition; the integration of Rasmussen’s activities and APEI’s ability to realize the expected benefits of the acquisition; that Rasmussen may have responsibilities that are not known to the APEI; the effects, duration, severity and response of APEI to the COVID-19 pandemic; moderation or decrease in demand as the pandemic abates; changes and expectations regarding enrollment, enrollment and the composition of the APEI student body; the dependence of the APEI on the effectiveness of its ability to attract students who persist in the programs of its institutions; the inability of APEI to effectively market the programs of its institutions; the negative effects of the changes made by APEI to improve the student experience and strengthen the capacity to identify and enroll students who are likely to be successful; the need for APEI to successfully adapt to future market demands by updating existing programs and developing new programs; the dependence of APEI on its technological infrastructure; and the various risks described in the “Risk Factors” section and elsewhere in the APEI Quarterly Report on Form 10-Q for the period ended. June 30, 2021 and annual report on Form 10-K for the financial year ended December 31, 2020, and in other documents filed with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements. APEI does not undertake to publicly update any forward-looking statements for any reason, except as required by law, even if new information becomes available or other events occur in the future. .
Contacts:
(Investors)
Ryan koren
American Public Education, Inc.
Assistant Vice-President, Investor Relations and Corporate Development
[email protected]
610-428-7376
(Media)
Franck Tutalo
American Public Education, Inc.
Director, Public Relations
[email protected]
571-358-3042
Net income on EBITDA / Adjusted EBITDA Pro Forma GAAP 2021
The following table represents APEI’s forecast pro forma financial results for the year ending. December 31, 2021 assuming that the acquisition of Rasmussen by APEI was completed on January 1, 2021. Numerous assumptions are incorporated into this calculation, particularly with regard to underlying financial performance, purchase accounting, appropriate depreciation and impairment methods, effective tax rate, future interest rates , etc.
2021 Pro Forma GAAP Net income on EBITDA / Adjusted |
Pro |
||
Net revenue |
13 $ |
||
Income taxes |
$ 5 |
||
Interest charges |
11 $ |
||
Depreciation and amortization |
$ 43 |
||
Loss on disposals / minority investments |
$ 2 |
||
EBITDA |
$ 74 |
||
Compensation in shares |
$ 8 |
||
Integration costs |
$ 8 |
||
Adjusted EBITDA |
$ 90 |
1 On a pro forma basis, assuming that APEI has acquired Rasmussen the January 1, 2021
SOURCE American Public Education, Inc.
Related links
https://www.apei.com