STRA - Earnings call transcript Q4 2018 | Strategic Education, Inc.

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Operator

Good morning, everyone, and welcome to Strategic Education, Inc.'s Conference Call in which we will discuss Fourth Quarter 2018 Results. With us today to discuss results are Robert Silberman, Executive Chairman for Strategic Education; Karl McDonnell, President and Chief Executive Officer for Strategic Education; and Daniel Jackson, Executive Vice President and Chief Financial Officer for Strategic Education.

Following the remarks, we will open the call for questions. Please note that this call may include forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements are based on current expectations and are subject to a number of assumptions, uncertainties, and risks that Strategic Education has identified in today’s press release that could cause actual results to differ materially. Exchange and XX-K uncertainties and XX-Qs, to with Securities these in be other and about as the Education’s well Strategic be and XX-Ks. information other future may relevant found filings Strategic Further Education’s as X-Ks, Commission, filed today viewing Copies these for the website at release are full of the press strategiceducation.com. and available filings on And to Robert now, Silberman. I’d like to turn the call over Mr. ahead. go please Silberman,

Robert Silberman

operator, Thank morning, good gentlemen. and you, and ladies

to fair amount me of material and today, cover let over a to turn so it have Karl Karl? Dan. We

Karl McDonnell

Good you, let and have information presentation Thank this our At me earnings remind morning, good we Rob. everyone. earnings is the available people also morning with supplemental has outset, provided from a that our along which strategiceducation.com. release website

full-year have, resolve that Company. Capella is XXXX fact the from that business with and and growing to of the we take well-positioned advantage Education benefits all reflect fourth Our merger strong our quarter

quite operating levels On remains adjusted primary to a XX% share in to to two XX% revenue results our forma integration Results strong. increase within segments, and itself $X.XX. increase to segments completed University, on and in billion Capella fourth our basis, $XXX a and pro merger decade XXXX. in seen both Our a pretax university be million, not X% include in were performing the in University our per income $XX a increase at earnings a track two Strayer quarter the are nearly

operating increased during student, year. Strayer’s margin at points all the X% prior increased quarter and Revenue XX Strayer of Also Decatur, fourth pending and enrollment campuses XX.X%. to basis approval. new Paso, its intends in also versus new fourth and quarter, XXXX open University as University's we new continuing fourth student third El opened said six increased Strayer Strayer eight between XXXX last in and campuses Texas. total And regulatory and to Alabama First, Strayer the quarter, X%

For student FlexPath, the and enrollment quarter, exceptionally program, new increased prior XX% competency-based, X%. fourth assessment Capella’s perform year degree grew enrollment well. to Capella University's direct from total continue

Robert Silberman

I’m The enrollment have respiratory Karl results. now year of doing We small to terrifically. FlexPath operating on XX%. here, FlexPath take XX% for increased and enrollments. masters is of and they some going versus the one-third the And enrolled The problem FlexPath over total increased the - comprised all bachelors prior enrollments a so

Karl McDonnell

its researching Capella of so the Orlando, perform first Capella first additional a XXXX remains potential locations to concurrently well. half open can two test in two in be open physical is XXXX also location future on position Georgia. in should locations Atlanta, in and track the they sites to physical locations Florida that

the saved so making on be investments, synergies to our classroom various fully will to in implemented a to of Turning XXXX forma from company XXXX, announced our end had implemented be on synergies now investments roughly to $X rate the end be will target brief on the of technology pro dollar this The we basis. cost will XXXX At forecast new savings worth achieve our is synergy basis. expenses we company flat million still previously of the each $XX remaining year. meaning, allow by The run company and innovations, significant campuses $XX operating integration. a merger these a the update We the expect ongoing synergies implement. will cost $XX offset to dollar-for-dollar, that million million to

with which we more on organization inside of the of of every the our I'd months couldn't day being the Strayer reflects and, through process most merger are who the day the our ask talented in like professionals our our deployment post Capella of Seven pleased Strayer’s We of of culture team all Capella. practice integration created the progress best both behalf wave that, close, also of be sharing importantly, financials. first to work technologies operationalizing the including best to artificial-intelligence-enabled run strong University. across and And students. thank and vibrant with Dan I'll And with

Daniel Jackson

Thank everyone. and and consisting three Institute; for the the University morning, Management Inc., Welch the good Jack Strayer Strategic segments, Strayer which Capella consolidated segment, reporting solely Today, University you, University Education, Karl, consisting we're segment, results includes Company Academy, to Education of which results New Sophia. financial segment Capella and XXXX. Code Programs York occurred of Non-Degree Design that exclude the and includes X, Note our prior Hackbright August Academy, the + The University; that results Capella DevMountain, consolidated of

forma core earnings release pro our see website. in also numbers quarter section or business the our results the to year segment fourth earnings in to performance XXXX of a view as adjusted reflected please slide illustrate remind full results. as our is the and release I to adjusted of references results. our addition GAAP that Relations results, or For non-GAAP posted the financial reported want GAAP Investor everyone This the intended deck of to level format

included acquired refer charges fair excluding information. additional and financial number the we release accounting-related the Please amortization associated costs adjustments revenue certain related merger, to integration adjustments deferred items morning non-GAAP fourth the the tax merger, adjustments University results in merger-related with a purchase adjustments. and with and adjusted for value expense quarter impairment information of valuation of in revenue, issued including Our non-core transaction and the asset earnings Cappella to this Capella discrete other assets associated

XXXX fourth adjusted revenue million for on the results, in quarter XXXX. few comments Now to a QX million our $XXX.X consolidated of compared was $XXX.X SEI’s for

$XX.X the operations the $XX.X million for in quarter period for XXXX. Our from same million, adjusted compared was income to

associated merger-related and costs. adjusted of SEI’s million earnings XXXX, effective intangible fourth and costs, Fourth adjusted adjustments. fair $XXX,XXX merger-related in Academy. $X.X for million impact value revenue of with was million Fourth the quarter New the amortization adjustments share diluted Design income adjustment, adjusted $X.XX $XX.X period costs, the exclude Capella million compared merger, the fair quarter XXXX to $XX.X and operating The for of margin for was XX.X% million in for adjusted was assets, income tax XXXX $X assets adjusted $X.X amortization + $X.XX in XXXX. purchase in per net Our accounting XX.X%, net rate tax York a XXXX adjusted of quarter associated and the deferred the same which Code merger, excludes revenue compared quarter $XX.X related to other XX% assets assets quarter adjustments, was acquired results in and value deferred discrete exclude intangible adjustment XXXX. intangible of adjusted results to intangible with of expense of impairment to merger compared in the million Fourth impairment

adjusted our for tax expect be the We quarter XXXX first to of approximately XX.X%. effective rate

million Moving per quarter to from enrollment student. was the increased than $XXX.X our quarter. $XXX.X revenue Strayer the fourth for better to student and to quarter segment Strayer drops for XXXX due by we University the fourth X.X% stable quarter higher scholarships million results, in Revenue fourth driven per segment in segment revenue lower relatively and expected

revenue points. Strayer full-year per basis the segment XXX to XXXX, the declined for student For

which million, shift on segment segment income fourth to points. was XX.X% the revenue basis XXXX, Strayer $XXX.X about $XX learner the Revenue operating to last million use increased for revenue basis to due for margin we compared lower-paying scholarships in points improved quarter points corporate-sponsored operations University learner, adjusted per to an University segment continued and about the in basis full quarter the and decline year from between increased quarter improvement year, annual enrollment to students. for in expect into for XX.X% reflecting the slightly and the and slight from of XXXX. XX XXXX per continued basis XXX student Moving Strayer Capella $XX.X for revenue per increased mix XXX XXX the QX. million higher

was per For University, quarter, XXXX, FlexPath at higher Capella expect for in by XX.X%. commenced Loss million slightly DevMountain, Hackbright to operation to XXXX. offset from Sophia. of flat non-degree we million our Adjusted of continued the to compared million last the revenue revenue inclusion mainly loss shift increased for from the $X.X programs $X.X million and increases $X.X the programs. from a margin QX Academy, lower-cost in period the that and income segment operating $X.X from million XXXX tuition in was July was revenue the year, operations segment to to $XX.X mix adjusted Capella due for XXXX, reflecting learner same

$XXX.X Moving million results, SEI’s consolidated our million from for year adjusted XXXX inclusion for from to primarily in was Capella to revenue. $XX.X to the million increased million due XXXX $XXX.X for compared operations adjusted XXXX, revenue to income of the $XX.X XXXX. SEI’s full-year

exclude and the million $X.XX income XXXX, was to a for with deferred assets in compared for adjusted accounting X, and million Capella million $XX.X $XX.X from in margin was noncash was to associated related York operating other net million intangible of margin a merger On tax excludes million adjustments operating adjusted basis, merger, York merger-related million to prior costs discrete adjustments. to of costs, million XX.X% XXXX. in was adjusted revenue in XXXX for million effective compared results with was and XX.X%, the exclude to XXXX includes and compared value compared income intangible merger adjustment for New adjusted Capella impairment XXXX, operating the Education of Our merger, Code associated which $XX.X which net impairment adjusted XXXX adjusted Academy. amortization $XX.X $XXX.X XXXX million adjusted adjustments, XXXX elimination intangible SEI’s per the to a to of pro and rate Design million was in adjusted consideration impact the of assets, of August XXXX Design amortization fair in $XX.X deferred and XXXX. costs, in New XX.X% Code forma results purchase and expense XX.X% earnings the XXXX. revenue compared related contingent share the for charges for of $XX.X $XXX acquired XX.X% $X.XX associated income adjusted results $X.X assets, with tax XXXX Academy. benefit the $XX.X

effective rate We tax for approximately expect our to XXXX be XX.X%. adjusted

no Moving balance XXXX debt. generated merger to securities, equivalents in transaction ended cash cash in the SEI and integration with compared million $XX.X cash million of to during The sheet operating operations and marketable $XX.X and cash primarily and was due and decline flow, in the XXXX to costs. million $XXX.X cash, quarter from

for period was compared same X.X% bad of quarter to X.X% for the Our revenue the in XXXX. debt expense

million Regarding SEI $XX.X $XX.X to capital spent compared million expenditures last year. during XXXX

XXXX, on $XXX million Rob? revolver. million For and in expect we our $XX capital be to credit expenditures And continue million. finally, full to year we between the maintain $XX available

Robert Silberman

capital through already decision capital both run But issuing Company. at Education final time it high Capella Dan's of think allocation our of we One capital on in comment XXXX we Dan. the level value like sufficient the biggest And before allocation for open and a this covered of our calls. over Thanks our our was that to At decisions detail, questions. remarks and past year, to shareholders, year. of to equity obviously, always in Karl’s I acquire previous we've XX% up

In assets, sheet. terms balance from SEI’s from million operating the year of started from with $XXX months five our assets, million on of cash million we with $XX assets. the $XX that Capella combined SEI’s cash, of in includes generated pre-transaction XXXX, contribution results The $XXX of and million pre-tax Strayer business and securities

helpful in the think it's Going came see that I obviously, from. but won't forward, this first generation shareholders where year we make cash to distinction to

million Now, as million and XXXX the we generated state of cash $XX taxes. local We follows: $XXX federal, paid in used in

to sheet. of $XX invested capital technology. million payments As we we in costs the the including severance employees, Dan and cash affected We the added balance approximately associated $XX million $XX remaining million area mostly with expenditures, paid transaction mentioned, just to in in Capella our

decided very $XXX total Capella to common XXXX per also, the securities Based of the Capella $XXX year, million to the $X cash increase cash That to share. of of added fund and in us $X financial as year year $XX our during X, dividend sheet shareholders during million to dividend which of transaction, nature to accretive SCI's the on roughly shares issued directors the use our Capella’s million. brought of August double our to balance let marketable board SCI the additional of available dividend. We the plus which our annual through million $XX from assets we

we'd As be debt. $XX no with $XXX solid a cash operator the long-term that sheet outstanding questions. $XXX million of year and revolver balance pleased we ended with And of million and million result, bank any rock a on shares to securities. undrawn answer

Operator

is with Instructions] Jaffray. question [Operator Appert first Our from Peter Piper

is now Your open. line

Peter Appert

to impressive I performance Strayer enrollment your so many of part. you'd wondered anything University the out remains if peers specifically the call very for and relative So

offerings are or initiatives In terms programmatic performance. that particular of maybe driving this

Karl McDonnell

can't macro Jack conditions. other the level seen we what is Welch on call at primarily I out favorable the quarter that see specific has but well. which maybe which perform commented pretty graduate a been Institute trend than continue before undergraduate we continues is the The Management anything last to we've to growth

I So, any one pretty to conditions. favorable just can't other than thing point macro

Robert Silberman

new slight might I add campuses uplift the from too.

Karl McDonnell

That's true.

Robert Silberman

Right.

Peter Appert

of competitive. base How obviously there then there? much initiative, see is perhaps in And left Capella is how growth and little the you've you I I'm called sustainability enrollments wondering juice market how FlexPath on a the the much do out getting think more that? competency the bit maybe

Karl McDonnell

of I to strong, FlexPath think grow the a program there Within that differentiated. momentum it's see FlexPath expect in FlexPath, sustainability so we're really don't quite lot with to highly and the continues we very down. nursing slow of we confident

Peter Appert

progress maybe that. then million opportunity see $XX this number I synergy to at for wonder flex you very obviously bit little point good Karl on that any And perhaps for higher. target you cost a Dan the you’ve made if or

Karl McDonnell

We're productivity an on take the delivering academic $XX on that. on a a But $XX million any and just for are basis the our focused looking year. this we're the if run focused increase a teams million quality, compromising rate rate to run $XX basis just on But million this always beyond just opportunity of ways Peter delivering extend to synergies year. at look without we'll the there's

Peter Appert

am it as the money? as the it's of required just easy what's ones, I expectation but these hard business? as total Can since percent relates that it you non-degree know as I tiny well the I'm question, offering, make morally program And to ask to for a a pie wondering it

Karl McDonnell

to value good to that getting I that And there, tangible If demand programs, this on to that. for to it We're We've nascent so. going year. is can we happy we'll be high-quality that provide those focused students at space some if auction programs of we're think value. amount run take always somewhat that create as for And industry the then is and breakeven. breakeven attend it see the thought that that a able on we business capitalize time it's when to mature. coding and

Peter Appert

today. actually these this just seeing the the And Are AI still expand from financial that from is you're of and one talk tools last you’ve results which impacting seeing student standpoint then thing, terms in highlighted point initiatives the a you technology Karl, past reports how at about class again to response sizes? of in you positive Any the some results?

Karl McDonnell

see to student University achievement. Peter. the about continue from in gains trends in program, Strayer We continuation very of XX% that seats favorable and And seeing we're now, rates it's

are and inside here that gains test on to a side productivity are that of the we're happening approach University that preparing year. University direct result program, of this of Capella some And the later Strayer

Operator

next with Jeff Our from comes BMO question Markets. Silber Capital

open. is line Your

Jeff Silber

potentially it of if a indicators I successful, take first strategy, see how the on maybe for about and make test Capella campus you're just the before long actually to focus will If could accelerating talk little decision your rollout. those of to bit locations. new What a type looking are are rollout you that

Karl McDonnell

in note Capella just distinction classes we not their Well, teaching will the enrollment is see I trends. to want be should locations. on-ground one

centers enrollment be student will centers. advising those or So

or enroll. if and able we'd to locations, XXXX. these so perhaps to looking to students the students be locations we're perform later those locations once looking in out performance we'd And Capella are be what the similar XXXX they then new And Strayer of they to attract if to additional forward roll see certainly in

Jeff Silber

areas areas Thank you Capella and the you geographic potential on for clarification maybe in beforehand those you back? on would locations, new the and be in rolled the were locations, Strayer new

Karl McDonnell

any locations previously and new that entirely were do they'll will likely as where think locations cities there in some meaning the but be it's new don't states of potentially I we well. be I Jeff, think

Jeff Silber

somewhat see where we're going be I contiguously they to Coast? nothing are guess something would And now. you to the on close in West If

Karl McDonnell

more I would But likely them. they those that sites contiguously than not the some not have it's been we'll located. open finalized, think just announce be we of so when

Jeff Silber

some you I also those any I business. number government just in know shutdown of wonder, have impact locations was there your of on areas. the of a

Karl McDonnell

No, didn't to that we all. seem adversely by really be impacted at

Jeff Silber

are excuse and been either Education be you that hear about might since we've Reauthorization. proposals on some to anything your seeing area, finally noise under Act know great some business? That's I the detrimental in Higher there for D.C. Is the then beneficial me or horizon potential

Karl McDonnell

we obviously the as all we tracking pretty mean Well But variable. we're over closely Jeff, it's can. that as lot. I hear proposals

I think ourselves very that the operate focus on regulated way this highly is that do a in best industry. we we

say government beneficiaries program continue sort position to maintaining IV and the vis-à-vis in on possible quality a kinds the regulatory the loan are We program of significant terms that highest of yourself But academic or figuring way of the going to of legislative before. of focus initiatives. that's to that through and best really any we're even Title the proximity, within that happening sort the have of we've likely to with dealt modifications are discussions geographic attention with boundaries what into that the that we're paying are any we the our that changes I that real wouldn't or ones insight coming or

other concerned it. or way the one particularly not we're So on

Operator

And comes Analysis. Corey go Please with question from First Greendale our next ahead.

Corey Greendale

discussion or the cash on the impact was off hoping merger some add the of all A effect? of million pre-tax based first get allocated I that pre-tax of costs cash or ops. cash to since just couple flow how is of from I sense was to Can we tax the Rob $XX back questions, need was income. appreciate of of that

Robert Silberman

would adjusted be to costs. about it between it Corey, if $XX you $XX for the million million, merger

Corey Greendale

Is from thank that Okay, ops? cash flow you.

Robert Silberman

excuse Yes, me.

Karl McDonnell

ahead. go ahead, Go

Corey Greendale

on sure with and in as to be us flat flat, willing is the first what's you're be what Sorry. great? a just flat I when appreciate would in all OpEx. the even guidance number using baseline there give want I there, say not what that of like that what you if you're

Robert Silberman

the working to has forma. $XXX posted deck baseline Yes, expenses we roughly That's of, it’s off pro site we're million Web Corey in the the earnings XXXX. for forma that expenses the pro

Corey Greendale

Good. Don't trust own. their figure on to analyst out that

I So then appreciate of this. comment on you on that. the partial any enrollment was And I missed apologize shutdown if in the quarter? I effect whether Did there

Robert Silberman

There on impact no was that, Corey.

Corey Greendale

the number given you from a that non-trivial Federal coming government, students of government, And right? federal do is have the

Robert Silberman

a number now which are a that's think number have And actual part the of some VA and of the military. of don't active students small would We relatively in not base. I combined but employees government our I know the fair duty government number

Karl McDonnell

now. think Corey, Washington in were University, add back because pretty it's an and company history basically the XX population the But only number ago in we But D.C. student maybe on of geographic also now dispersion years Capella from if you was number enormous a given the you small the now

Corey Greendale

go degree But has over about been Capella about be much Strayer to cover level? same that enrollment All I look right, enrollment XX people could suggest I thanks. there mix it or do good, who downside it's at wouldn't why generally. so environment is the years, comparison Peter's so having think the would question impacted to good our company Capella was. to back you I to what time or memory to for when back goes that get up the That’s in with a just Is benefiting wanted the the something want benefit different as it given to

Karl McDonnell

performing growing there's so is Well, XXXX four that's out on have graduate that have observed Rob's one Strayer other from few nicely point much we on amount highly difference than that fact and nothing programs fair over that campus last openings, been one notwithstanding here have program mean we had quarters. is really the call of new opened would a we've that, heavily the the are all the side got that in Capella’s Capella expectations. think I differentiated that and the I Other Corey essentially above side, graduate competitive have we been some than intensity space our good the mix skews the contributions

Operator

And our Alex from next question Paris with Barrington is Research.

open. is line Your

Alex Paris

I have a follow-up question.

great of like in savings better by as a line progress a bit to little in First revenue synergies. on integration. bit result year potential expected you're cost of all, It if it than acquisition not end. the little looks a wanted the looks focus I like and year on

I you you're said referred of heard was favorable the to encompassed that that And earlier AI trends bit far. the dive think within time over you success terms that that was on one a towards wanted side you in success the more bit skewed degrees? so seats then at of in little I XX% it at said are XXX. very program given of And is in heavily over as graduate its You that Strayer. If to moving right, a Capella opportunity Capella now Strayer some I commented technology Capella. then to into which

Karl McDonnell

Capella the on the so class size. It's not mix. the degree much is constraint The side in really

successful hundred you things that model taking might be where quarter the it one particular have of students that we of is business to fair given in in up large, so courses and any enabled several quite class divided into sections. of being were One that had a would them number XXXX XXXX to Strayer be that introductory

worked And we so approach well. scaling the online that took quite

benefits have there's approach the that retention of all productivity less you'd student disparate to opportunity and get a higher courses. satisfaction, high fewer the given would expect We savings I do but itself suspect the meaning just less that they side, would the portfolio. you have translate higher many would Capella volume because get program revenue just volume higher is which of teaching don't be into more the because as On have you I'm courses get

Alex Paris

good. down deductions? Okay, of the I focusing -- me can transplanting clearer we're there the revenue That's could what not out synergies yet road. but go what now. And be cost not they're for more then sort other other on taking realize you're --

Karl McDonnell

Sure.

if the perform new like think add locations, biggest near-term a physical remotely I even the they the will Strayer to Capella, opportunity forward. for that are moving locations be meaningful revenue

program we're looking new that, Beyond at offerings.

will think to an we've the I that's more be where locations. management first outreach revenue teams structure together our our near-term, on actually in we focus some side. be area in there'll as synergies just But would work SCI yet just the of part to to to to I meaning extend marketing BXB we'll continue one which physical level closely harmonize have would BXB companies. on do another the the XXXX, Capella one

Alex Paris

correct? Can terms in programs is least associated at corporate that me size with you partnerships, XX% Strayer difference of of enrollment of one the both remind at had point

Karl McDonnell

Capella I honestly where that's and I Quite that is still the quite particularly they but figure at. well we're for Health segment. in roughly don't It know that Alex, have do

Alex Paris

revenue side, regulatory that realize approval to there something would or Capella could Great. look we that that to FlexPath potential Last to? the on the is again Strayer. I but question the transplant forward from require could desire be synergies

Karl McDonnell

that case would is Education. that followed right, you're approval it the process Middle teams approval States a be fairly of in our are something Strayer’s it But first we lengthy through are go requiring to and something Department from the has evaluating evaluating. It's by accreditor, that

Alex Paris

Thanks Okay, good. again hearing Thanks now. for me guys.

Karl McDonnell

you, Thank Alex. Thanks.

Operator

is Thank next And Jeff from you. Meuler our with Baird. question

Your line is open.

Jeff Meuler

the taking for question. you thank Yes,

Karl that first around also Just breath somewhat results my hasn't away. take for been years, couple these a of

have if bigger Kevin tailored similar to different few a maybe close guys listening but you to to congrats over Peter’s as Corey picture somebody the that question I time somebody been hasn't guess the years to and story. So newer to or last did he's that's I and but horizon a

I and there's new you're So factors contribution campuses. that understand getting macro from a

you past marketing just experience perspective, of the recap development in pricing also me execution. I program could kind launch changes think perspective a from years few the student you've for your or you biggest what adjustments made the last made but

a changes picture may to any Just to having that could lead enrollment big performance Thanks. be being strong over horizon benefit that trends this multi-year currently sustainable? a

Karl McDonnell

XXXX Undergraduate graduation I'd changes to on for where degree new campuses the say through its every and then cost of XX% senior about fund open Strayer the clients. we year largest top since earn biggest by tuition moves, reduced layer occurred, opportunity the to beginning XX%, new continued free. the their by of grown which those Strayer of conditions, made top has Combined macro essentially reduced on two allows year improving simultaneously affordability layer we that that on undergraduate a students penetration some launched again our students corporate

three to years. of I would say it, if last Strayer’s five level, you So biggest drivers think about it’s just high the a those would the be growth.

Robert Silberman

just graduation the they I'd and increased of which that continue the the academic a investments or in all performance the means as three students rate. points come well. that, made higher and four I from the at towards program rate succeeding student into there's classroom mean add technology more move probably with continuation that from higher from also you growth

Jeff Meuler

follow-on, I Robert. appreciate the

biggest tech the are what you've and changes academic So that made?

Karl McDonnell

content you well if learning. frankly in last gains been, We've with program on go itself new it as satisfaction. classroom there's Well, student and learning three analytics. then and achieve predictive online have really studios back over the upgraded a Strayer lot plus completely started done We've years with adaptive achievement scale year as the enabled that's student the this incredible to us we

in inning ninth this that I'd in now we apply that many an say its XX% we within XXX where large courses in year reach methodology. we've prior of something because got called of iterations, For in excess you've had teaching and method participate of XXX you've this promoter retention students terms eighth new University gains points or we're working And that perfect. basis probably spent got period or month a can scores to the It's more. that XX not which left good there's in Strayer over net probably

see And focus is Capella into can if it get gains. to and our introduce we University so similar now

Operator

Thank his showing turn remarks. to in Silberman like would for further I'm final you. I to questions And not Rob the any call the back queue.

Robert Silberman

Minneapolis specific be Thank we’ll you, at We Operator around if that Annual our at those earnings Meeting year. talking you and Karl And feel are thanks you. our this to other please you which to for and two about call next or will any in everybody you months. talk free in to I, of Thank look participating. Dan, with for call there's otherwise questions forward

Operator

ladies And thank all disconnect. today's you program with for the concludes wonderful day. may This and we Have a and you gentlemen, participating in conference. that

Strategic Education (STRA) 1 Mar 192018 Q4 Earnings call transcript