American Public Education, Inc. (APEI) reported consolidated revenue of $624.6 million for the year ended December 31, 2024, a 4% increase from $600.5 million in 2023. This increase stemmed from a 4.5% rise in revenue at the American Public University System (APUS) segment, an 18.2% increase at the Hondros College of Nursing (HCN) segment, and a 1% increase at the Rasmussen University (RU) segment. These gains were partially offset by an 8.6% decrease in revenue at Graduate School USA, reported within the "Corporate and Other" segment. APUS saw a 2.9% increase in net course registrations to 378,400, while RU enrollment decreased by 1.3% and HCN enrollment increased by 14.9%.
Consolidated costs and expenses decreased by 8.8% to $591.5 million in 2024, compared to $648.9 million in 2023. This decrease reflects a reduction in impairment charges on goodwill and intangible assets, offset by increased costs in areas such as employee compensation, information technology transition services, and professional fees related to the planned combination of APUS, RU, and HCN. Excluding these one-time charges, costs and expenses as a percentage of revenue were 92.9% in 2024, compared to 96.6% in 2023. The company's operating margin improved to 5.3% in 2024 from -8.0% in 2023.
APEI announced plans to combine APUS, RU, and HCN into a single institution, the Combined Institution, expected to be completed in the third quarter of 2025, subject to regulatory approvals. The Combined Institution will have two divisions: APUS Global and Rasmussen. The company anticipates that this combination will improve operational efficiency and strengthen its financial position. Approximately $2.2 million in professional fees were incurred in 2024 related to the combination, with an estimated $3.0 million to $5.0 million expected in 2025. Several campus consolidations and closures occurred at RU during 2024, resulting in lease termination and impairment charges.
The company's liquidity increased, with cash, cash equivalents, and restricted cash totaling $158.9 million at December 31, 2024, up from $144.3 million at the end of 2023. This increase was primarily due to higher revenue and operating income at APUS, offset by increased capital expenditures and changes in the billing policy for tuition assistance at APUS. The company's debt obligations under its credit agreement totaled $96.4 million at December 31, 2024. The company also issued $40 million in Series A Senior Preferred Stock in December 2022, resulting in dividend payments of $6.1 million in 2024. The company's outlook anticipates building on the momentum of 2024 by achieving public market scale and improved operating margins in 2025. However, the filing includes numerous forward-looking statements and cautions against undue reliance on these projections due to inherent risks and uncertainties.
About AMERICAN PUBLIC EDUCATION INC
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