American Public Education, Inc. (NASDAQ:APEI) Q2 2016 Earnings Conference Call - Preliminary Transcript
Aug 09, 2016 • 05:00 pm ET
Good day, ladies and gentlemen, and thank you for your patience. You've joined the American Public Education Q2 2016 Earnings Conference Call. At this time, all participants are in listen-only mode. Later we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a remainder this conference maybe recorded. I would now like to turn the conference over to host Vice President of Investor Relations Mr. Chris Symanoskie. Sir, you may begin.
Thank you, Operator. Good evening, and welcome to the American Public Education conference call to discuss financial and operating results for the second quarter of 2016. Please note that statements made in this conference call 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, seek, could, estimate, expect, intend, may, should, will and would. These forward-looking statements include, without limitation, statements regarding expected growth, expected registrations and enrollment, expected revenue, expected earnings and plans with respect to recent and future initiatives, investments and partnerships.
Actual results could differ materially from those expressed or implied by these forward-looking statements as a result of various factors including the risk factors described in the Risk Factor section and elsewhere in the Company's annual report on Form 10-K filed with the SEC, quarterly report on Form 10-Q filed with the SEC and the Company's other SEC filings.
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. This evening, it's my pleasure to introduce Dr. Wallace Boston, our President and CEO and Rick Sunderland, our Executive Vice President and Chief Financial Officer.
Now at this time, I'll turn the call over to Dr. Boston. Mr. Boston?
Thank you, Chris. Good evening, everyone. I would like to begin today's call with a summary of our recent results and a review of the progress we've made with respect to our long-term goals. Then our Chief Financial Officer Rick Sunderland, will discuss our second quarter financial results and provide perspective on the Company's outlook for the third quarter of 2016.
Moving to slide number 3, in the second quarter of 2016, net course registrations at APUS declined 8% compared to the prior year. Although net course registrations by new students declined 22% year-over-year, net course registrations by returning students decreased only 5% compared to the prior year period.
We believe that the difference in the rate of decline in net course registrations by newstudents and that of returning students relates at least in part to improvements in our quality mix of students. For the three months ended May 31, 2016, the first course pass