American Public Education Reports Third Quarter 2009 Results

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Net Course Registrations from New Students Increased Approximately 41% in Third
Quarter 2009 Compared to the Prior Year Period
CHARLES TOWN, W.V.--(Business Wire)--
American Public Education, Inc. (NASDAQ: APEI) - parent company of online
learning provider American Public University System (APUS), which operates
through American Military University and American Public University - announced
strong financial results for the quarter ended September 30, 2009.

Recent Highlights:

* Net course registrations from new students in the third quarter of 2009
increased to approximately 14,700, an increase of approximately 41% over the
same period of 2008.
* Net course registrations increased to approximately 55,300 in the third
quarter of 2009, a year-over-year increase of 42%.
* As of September 30, 2009, a total of approximately 59,300 students were
enrolled in American Public University System, a year-over-year increase of 44%.

* American Public Education reported third quarter 2009 revenues increased 33%
to $36.5 million, compared to $27.4 million in the third quarter of 2008.
* Income from operations before interest income and income tax in the third
quarter of 2009 increased 35% to $8.4 million, compared to $6.2 million in the
same period of 2008. Operating margin in the third quarter of 2009 increased to
23.0%, compared to 22.6% in the third quarter of 2008.
* Net income for the third quarter of 2009 increased 31% to $5.0 million or
$0.27 per diluted share, compared to $3.8 million or $0.20 per diluted share in
the same period of 2008.
* American Public University System received approval for and launched a
Master`s degree in Legal Studies and a Bachelor`s degree in General Studies.
These two new programs bring the total number of degrees offered to 76 degrees,
with a new degree pending approval by its regional accrediting body and other
degrees under development.
* American Public University System was recently recognized by The Sloan
Consortium (Sloan-C), a renowned non-profit group of higher education
institutions, with The Ralph E. Gomory Award for Quality Online Education. The
annual award honors the institution that best demonstrates its commitment to
excellence in online learning.
* The International Association of Emergency Managers (IAEM), a non-profit
educational organization dedicated to saving lives and protecting property
during emergencies and disasters, honored the Emergency and Disaster Management
Program at APUS with the 2009 Academic Recognition Award. The annual award goes
to the institution that made significant contributions to the formal education
of students pursuing a career in emergency management.
* American Public University System announced a graduate tuition increase to
$300 per credit hour ($900 per three credit course) for courses beginning in
April 2010 or later.

Financial and Other Results:

Total revenues for the third quarter of 2009 increased 33% to $36.5 million,
compared to total revenues of $27.4 million in the third quarter of 2008. Income
from operations before interest income and income tax in the third quarter of
2009 increased 35% to $8.4 million, compared to $6.2 million in the same period
of 2008. Operating margin in the third quarter of 2009 increased to 23.0%,
compared to 22.6% in the third quarter of 2008. Stock-based compensation expense
reduced operating income by $562,000 in the third quarter of 2009 and $396,000
in the third quarter of 2008.

Net income for the third quarter of 2009 increased 31% to $5.0 million or $0.27
per diluted share, which includes $359,000 or $0.02 per diluted share in
stock-based compensation expense net of tax. This compares to net income of $3.8
million or $0.20 per diluted share for the third quarter of 2008, including
$261,000 or $0.01 per diluted share in stock-based compensation expense net of
tax. The weighted average diluted shares outstanding for the third quarter of
2009 and 2008 was approximately 18.9 million in each period.

For the nine months ended September 30, 2009, total revenues were $105.3
million, an increase of 39% compared to total revenues of $75.6 million in the
same period of 2008. Income from operations before interest income and income
tax for the nine months ended September 30, 2009 increased 49% to $25.9 million,
compared to $17.4 million in the same period of 2008. Stock-based compensation
expense reduced each period's operating income by $1.6 million and $1.2 million,
respectively.

Net income for the nine months ended September 30, 2009 increased 40% to $15.6
million or $0.82 per diluted share, which includes $1.1 million or $0.06 per
diluted share in stock-based compensation expense net of tax. This compares to
net income of $11.1 million or $0.59 per diluted share in the same period of
2008, including $817,000 or $0.04 per diluted share in stock-based compensation
expense net of tax. The weighted average diluted shares outstanding for the nine
months ended September 30, 2009 and 2008 were approximately 18.9 million and
18.8 million, respectively.

Total cash and cash equivalents as of September 30, 2009 were $63.8 million with
no long-term debt. Cash from operations for the nine months ended September 30,
2009 was $22.8 million, compared to $19.8 million in the same period of 2008.
Capital expenditures were $8.6 million for the nine months ended September 30,
2009, which compares to $6.9 million in capital expenditures in the same period
of 2008. Depreciation and amortization was $3.9 million for the nine months
ended September 30, 2009 and $3.0 million for the same period of 2008.

Net Course Registrations and Student Enrollment:
For the three months ended September 30,
2008 2009 % Change
Net Course Registrations from New Students 10,400 14,700 41%
Net Course Registrations 38,900 55,300 42%

For the nine months ended September 30,
2008 2009 % Change
Net Course Registrations from New Students 26,800 36,400 36%
Net Course Registrations 105,300 149,800 42%

As of September 30,
2008 2009 % Change
Total Student Enrollment 41,100 59,300 44%

Note: Net course registrations represent the aggregate number of classes in
which students remain enrolled after the date by which they may drop the course
without financial penalty. Total student enrollment is the number of students
who have completed at least one course in the last 12 months or are in the start
of the second week of class for the most current semester.

Fourth Quarter 2009 Outlook:

The following statements are based on current expectations. These statements are
forward-looking and actual results may differ materially.

* The Company expects net course registrations from new students of
approximately 13,600 and net course registrations of approximately 58,000 in the
quarter ending December 31, 2009.
* The Company`s fourth quarter 2009 revenue is expected to be approximately
$42.7 million.
* The Company estimates that fourth quarter 2009 net income, including
stock-based compensation expense, will be approximately $7.9 million or
approximately $0.42 per fully diluted share. The weighted average number of
diluted shares outstanding is expected to be approximately 19.0 million shares
in the three month period ending December 31, 2009.

Full Year 2009 Outlook:

The following statements are based on current expectations. These statements are
forward-looking and actual results may differ materially.

* The Company anticipates net course registrations from new students of
approximately 50,000 and total net course registrations of approximately 207,800
in the twelve month period ending December 31, 2009.
* The Company expects full year 2009 revenues to be approximately $148.0
million.
* The Company estimates that full year 2009 net income, including stock-based
compensation expense, will be approximately $23.5 million or approximately $1.24
per fully diluted share. The weighted average number of diluted shares
outstanding is expected to be approximately 18.9 million shares in the twelve
month period ending December 31, 2009.

Webcast:

A live webcast of the Company`s third quarter earnings conference call will be
broadcast at 5:00 p.m. Eastern time today. This call will be open to listeners
who log in through the Company's investor relations website,
www.AmericanPublicEducation.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, Inc.

American Public Education, Inc. (NASDAQ: APEI) is an online provider of higher
education focused primarily on serving the military and public service
communities. American Public University System (APUS), wholly owned by APEI,
comprises two universities - American Military University (AMU) and American
Public University (APU). Regionally and nationally accredited, APUS serves more
than 59,300 part-time students who live and work in all 50 states and more than
100 countries; and offers 76 degree programs in fields ranging from homeland
security, military studies, intelligence, and criminal justice to technology,
business administration, public health, and liberal arts.

Forward Looking Statements

Statements made in this press release regarding American Public Education, or
its subsidiaries, that are not historical facts are forward-looking statements
based on current expectations, assumptions, estimates and projections about
American Public Education 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", "could", "estimate",
"expect", "intend", "may", "should", "will" and "would". These forward-looking
statements include, without limitation, statements under the heading "Full Year
2009 Outlook" and "Fourth Quarter 2009 Outlook" above and statements regarding
expected growth. 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, 2008 as filed with the SEC. The Company undertakes no obligation to
update publicly any forward-looking statements for any reason, 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
September 30,
2009 2008
(Unaudited)

Revenues $ 36,471 $ 27,404
Costs and expenses:
Instructional costs and services 14,745 10,901
Selling and promotional 5,598 3,600
General and administrative 6,465 5,586
Depreciation and amortization 1,277 1,114

Total costs and expenses 28,085 21,201

Income from operations before interest income and income taxes 8,386 6,203
Interest income, net 30 181

Income from operations before income taxes 8,416 6,384
Income tax expense 3,404 2,568

Net income $ 5,012 $ 3,816

Net Income per common share:
Basic $ 0.28 $ 0.21

Diluted $ 0.27 $ 0.20

Weighted average number of common shares:
Basic 18,196 17,846

Diluted 18,910 18,851

American Public Education, Inc.
Consolidated Statement of Income
(In thousands, except per share data)

Nine Months Ended
September 30,
2009 2008
(Unaudited)

Revenues $ 105,345 $ 75,644
Costs and expenses:
Instructional costs and services 41,861 31,334
Selling and promotional 15,085 8,390
General and administrative 18,563 15,461
Depreciation and amortization 3,934 3,043

Total costs and expenses 79,443 58,228

Income from operations before interest income and income taxes 25,902 17,416
Interest income, net 70 619

Income from operations before income taxes 25,972 18,035
Income tax expense 10,408 6,889

Net income $ 15,564 $ 11,146

Net Income per common share:
Basic $ 0.86 $ 0.63

Diluted $ 0.82 $ 0.59

Weighted average number of common shares:
Basic 18,138 17,796

Diluted 18,900 18,806

American Public Education, Inc.
Harry T. Wilkins, CPA
Executive Vice President and Chief Financial Officer
304-724-3722
or
Christopher L. Symanoskie
Director, Corporate Communications
703-334-3880

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