American Public Education, Inc. (NASDAQ:APEI) Q3 2019 Earnings Conference Call - Final Transcript

Nov 12, 2019 • 05:00 pm ET

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American Public Education, Inc. (NASDAQ:APEI) Q3 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator Instructions]

Our first question comes from Greg Pendy from Sidoti. Your line is open, please go ahead.

Analyst
Gregory Pendy

Hi, thanks for taking my question. Can you just kind of give us a little color on how we should think about the cadence quarterly in 2020 of the technology spend? Is it going to be front-half loaded or back-half loaded, or just kind of distributed throughout the year? Thanks.

Executive
Richard W. Sunderland

Yeah, hey Greg. I think it will be equally distributed across the year really ramping up these activities in the fourth quarter to get a running start on January 1. And so you'll see the spend likely relatively equally distributed across the four quarters of the year.

Analyst
Gregory Pendy

Okay, that's helpful. And then can you just kind of give us a little bit of color on the marketing spend? I think it was targeting Hondros and kind of how that played out and how you're thinking about that going forward?

Executive
Richard W. Sunderland

Right. So there was an increased spend, we reported $1.6 million year-over-year increase. That was $1.3 million at APUS, and the balance at Hondros. So Hondros was spending into -- was spending into the fourth quarter. Of course, APUS were spending into the fourth quarter also. And we did see the benefits. You can see the sequential increase in enrollments at Hondros, I believe was up -- new students were up 53%, total enrollment was up 13%. At APUS, you can see from our guidance at least mid-point to the top end, we're basically zero or slightly positive. And so we're seeing those benefits. Of course, the fourth quarter also saw the resumption of the Navy. And I think as we previously reported on the second quarter call, we were talking about the potential impact of the Navy.

Navy was up year-over-year through that May time period. And so we're seeing strength in the TA and including the Navy, and we expect that to continue in the fourth quarter.

Analyst
Gregory Pendy

That's helpful, thanks a lot.

Executive
Richard W. Sunderland

Thanks, Greg.

Operator
Operator

[Operator Instructions]

There are no further questions at this time. I'll turn the call back over to Chris -- sorry, Symanoskie.

Executive
Christopher L. Symanoskie

Thank you, operator. That will conclude our call for today. We wish to thank you for listening and for your continued interest in American Public Education. Good evening.

Operator
Operator

[Operator Closing Remarks]