American Public Education, Inc. (NASDAQ:APEI) – parent company of online learning provider American Public University System, which operates through American Military University and American Public University - announced that the U.S. Department of Education has informed it that the Department has completed its formal review of the change of ownership and control that was deemed to have occurred when ABS Capital Partners, the largest shareholder in American Public Education, Inc., made a limited distribution of 400,000 shares to its partners in August 2008. As a result of the Department’s review, American Public University System (APUS) remains certified to participate in federal student financial aid programs.
As previously announced, the Department of Education’s regulations required a review of the August 2008 distribution by ABS Capital Partners because the distribution caused ABS Capital Partners’ ownership interest in the Company to go below 25%. The Department concluded, as required by its regulations regarding changes in ownership and control, that APUS will move back into provisional status with respect to participation in federal student financial aid programs, and the Department and APUS have now executed a provisional program participation agreement that will expire September 30, 2010. While provisional status will mean certain enhanced regulatory reviews and processes, at this time the Company does not expect it to have an impact on its business results or current plans for growth. Additional information on certification by the Department of Education and the implication of provisional certification is contained in Item 1 of APEI's Annual Report on Form 10-K under the heading "Regulation of our Business."
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. 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 about estimated financial results, provisional certification, future growth and business objectives. 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, 2007 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.
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 33,000 part-time students who live and work in all 50 states and more than 100 countries; and offers 73 degree programs in fields ranging from homeland security, military studies, intelligence, and criminal justice to technology, business administration, public health, and liberal arts.
Harry T. Wilkins, CPA, 304-724-3722
Executive Vice President and Chief Financial Officer
Christopher L. Symanoskie, 703-334-3880
Director, Investor Relations