PRDO - Earnings call transcript Q3 2019 | Perdoceo Education Corporation

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Operator

Good day and welcome to the Q3 2019 Career Education Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Mr. IR. Alpha with Donovan Chris Please go ahead.

Chris Donovan

today Good Thank and for With Ashish and President call can you Ghia, conference Senior and everyone us you, me Chief for Officer, Alpha is on the call. webcast careered.com. Ashley. joining earnings our thank will Group XXXX Nelson, President be afternoon third available Executive Todd is live webcast Vice Financial relations on A and the Investor Chief support. replay the call Officer. within site always and for investor you our This IR at being quarter contact Relations section also

or and Let differ me These based information on actual as remarks cause and statements defined results, and that remind available in Career and assumptions currently Section made from to statements materially risks release those are by by the opportunities you Act. this and uncertainties earnings XXE business today could Exchange forward-looking involves afternoon’s in performance made implied prospects, include to of these and that statements. future Education Securities expressed

uncertainties and and for the and factors for the to Annual Exchange year limited future XX-K reason. to, XX, on but in reflect other Commission. no with Except Career changed by events, risks factors These Education’s statements are identified Report any December forward-looking ended as the developments expressly company securities or other undertakes the Form circumstances those laws, include, any filings required obligation to XXXX, not those or or update Securities

as the be Relations of page company’s the quantitative GAAP for financial discussed the today’s to refer the within financial measures, release www.careered.com. that non-GAAP contains supplement of substitute well accompanies not are other measures. remarks which reconciliation and website Investor and is earnings available non-GAAP intended to In as information to today’s at to The addition, most directly GAAP today comparable call but measures,

Todd call Nelson, Todd? like over turn I’d to to that, With the

Todd Nelson

you, us and thank you Thank joining everyone Chris. for call. today's on afternoon, Good

results pleased that are We year-to-date positive by supported and trends. been operating have quarter with our third

We while further retention improving on focus have the our experiences, institutions of and and we'll academic academic continue quality outcomes. to student enhancing

results operating efforts. those far Our underscore thus

first, primarily total highlights growth universities up for contributing the supported X.X% was this revenue by with X.X%, of student quarter Some include; to enrollment growth. key both

has Second, enrollment year better provided previously quarter. full outlook. we by improvements are we experiencing the expected improvements retention, continued be income operating third that trend outlook in our adjusted of a these into expect than and now ahead to Driven our XXXX

color his these more Ashish during will updates remarks. on provide

see support well consistent to we are we And student enrollment, optimize learning student interest Third, admissions continue to increasingly and and levels centers. and our by data advising have investments mostly being our and our processes. of on-boarding technology although prospective analytics annualized, using served are

enhancing both student Lastly, as planning that Triton integration from to the approvals are most students the working experiences also an higher effective University, while remaining maintaining it universities. will regulatory importantly, Department commission and academic into diligently on for of relates Education, we two and focus through AIU learning efficient outcomes and from and for the

I'll some the on highlights shortly. the further for expand quarter of

some and more I provide the before then and around closing our XXXX will update of outlook details Ashish financials add cover thoughts.

share. our million $XX.X quarter. to $X.XX income the or Now, performance of operating net reported We for diluted per

noncash to $X.XX compared per certain significant and as $X.XX earnings year was which share items in quarter. the prior adjusted While diluted excludes

operating also timing the quarter benefited later. primarily universities. Ashish in certain was by income of prior increase from The million, expenses an revenue improvement million the quarter will XX.X% operating the driven by $XX.X our with year growth $XX that Adjusted address of at was

as well retention. new year-to-date growth contributed Both up XX.X% enrollments this enrollment with X.X% by student as supported student to improving growth total universities of

process Some themes efficient data and these is increasingly well being student consistent processing interest served enrollment is levels of which initiatives effective and by by which our analytics. technology trends and and supporting were student being supported

within in increased service training advising part and student admissions productivity tenure our and centers, by support levels driven and and improved Also development.

in half student investments a academic driven Next, have positively years. the impacted impact retention trends engagement that the the improvements over is made enrollment and serving student believe And initiatives lastly, that new we redesign calendar of timing our U.S. XXXX. by in few first and primarily we of past

Most at at academic year-to-date further in enhancements student outcomes. enrollments total grew segments, and on driven improving improving primarily new CTU, growth experiences of retention. X.X%, our to CTU by operational focus Moving the and by student enrollments supported retention

Some initiatives functions advising with and on students training, provided support worth the student development personal within to are mentioning enhancements that our and and our of focuses interaction guidance these increased students. improve direct and relevant further staffing,

relevant specific and further characteristics more Second, advising a strategies thus our admissions providing outreach have customize with reporting and meaningful student enabled and that technology engagement and enhancements interaction students. staff their on based to

optimization, driving of student pairing sequencing and outcomes that engagement. ongoing we is Next, and academic believe course, better

and and begun and also content to improve the structure experience. have redesign optimize learning teams core classroom to Our overall

on partnerships CTU. at comment corporate quick A

as We support are invest we enter initiative in further program our the to to as and continue and grow XXXX. looking partnership incrementally well

as to larger enrollments. higher total becoming of discussed, New persistence develop, students partnerships time percentage relatively a previously overall these our and thus and relationships are take have but

the and interest for enrollment to the student success XXXX. the we by student of new CTU quarter programs Driven supported expect fourth levels for initiatives and year prospective our growth experience various by of investments full consistent and

Now turning to AIU.

and academic variability, impacted enrollment in been working AIU quarter. of calendar, We've given at quarterly magnitude any As days driven on academic can a less the optimizing frequency that so number the significantly forward. reminder, its enrollment frequent the be this calendar going calendar and by of results is

number XX% momentum comparable at of to the beyond a is the versus organic pleased enrollment primarily encouraging new academic for underlying days counter-driven calendar initiatives, prior in This operating the We growth quarter; quarter. third AIU by quarterly experienced share enrollments, the demonstrates variability. driven the are AIU growth having which given year

of graduate Some teams model with thinking and critical build team encouraged enhancements first, the interactions initiatives through ongoing are cycle; to of the in optimization student's refinement highlighting with enhancing life goal the their a of experiences entire are: students. worth and

and our based ultimate -- centric optimization the There on significant has significant development pairing, on on training and to continued sequencing where is also there learning. model, been focus course development focus performance training further content of team; and that is improving feedback; and tenure refine learning course with on goal student the step-by-step

focused prepared financially on Finally, students our they start are A before school. getting financial teams

and expect new experience student quarter and objectives we general, year enrollments In growth XXXX. responsible growth for the well AIU to its is sustainable fourth executing against full of and

the academic also driven prior the And Please should note, be relatively primarily comparable year. is the half underlying second to enrollment investments. by organic growth trends calendar initiatives in and

online students Finally, technology students. and our serving universities, a technology primarily adult having academic few serve nontraditional differentiator institutions at initiatives current is to learners, a key including prospective regarding observations and enabler

rolled rate. version have We communication for usage and is the of mobile both an adoption have with and to their messaging our academic both on with overall used now topics approximately increasingly process. of two-way students students assist documentation and for related application is faculty. XX% high A, required app a application with universities financial, ability an variety The updated to upload students fully out at Overall app

to and looking learning student's cycle artificial opportunistically ongoing are also Analytics throughout by supported coaching machine from and the Google life expand use on-boarding intelligence support and of orientation advising. a to We

while about for learn students our university For AI-based able the who to want continuing is her example streamlined to XX% questions from process our accuracy has interactions. prospective chat to learn answer box, over Lucy, and with

We program identify learning and of are students. also technologies using functionality to sophistication enhance machine and online our prospective automation outreach to the

within program our to outreach technology refine process prospective the we experience to enrollment based interest. customizes student on continue of and their student Lastly, students prior that

improved seeing to As are decisions. relevant a academic process prospective information effectively them our help enrollment and more make result, able efficiency informed with within we students provide to are

remain growth. investing around has the continue has of outcomes us universities reaffirmation student financial this provided student strategy in experiences, that operating to and and serving focused performance year initiatives operating the academic both our necessary and investments on our in prioritizing and and summarize, responsible further Overall processes retention confidence support universities. of objective sustainable given To

a as well sheet I'd call the to hand With to balance of over outlook. the review for detailed our and XXXX like more Ashish as that, XXXX results quarter third

Ashish?

Ashish Ghia

back Thank to closing you, updated Todd will start of call and his third sheet before I balance results quarter Todd. with our for our then a the handing outlook remarks. XXXX review and discuss

All year period comparisons versus prior unless the otherwise stated. are comparative

one effective we reminder June after our teach a presentation responsible of As segment the changed our year outs. completion this

is no As segment which such segment. included the operating campuses Other an longer these schools All

to have have now campuses category. with a the maintain result residual and periods included losses As weakest corporate comparability. Prior other these closed associated been within been

income $XX.X million the third performance. an Now, underlying adjusted million. a our of compared was reflective of excludes overview believe three items more operating which certain quarter of operating to operating operating significant We $XX. quick Total income non-cash and income is strong results. company

range measure $XX our million provided growing Third quarter end also of experienced at year versus $XX prior the of with high outlook results million. was million quarter. strong this previously the adjusted above XX.X% $XX to It

per for $XX.X $X.XX the was quarter income share. or Net million diluted

settlement the as The per as quarter $X year item a to refer XX adjusting in adjusted million the compared arbitrations. most remaining collectively legal the $X.XX to claims arbitration related Oregon to diluted individual which the quarter. While share was for prior $X.X was earnings significant we

and this the for will end the approach subject closed that of become final smaller to we tail settlement The as to is the court quarter the related pay to leases campuses. first to amount remaining of also expect vacated in XXXX. space note our Please continue adjustments we approval

the performance reduced closed revenue improvement campuses. both associated as at adjustments, as losses growth primarily Excluding was these operating well driven universities with in by our

by approximately to was due associated million benefited debt. of programs bad $X.X The insurance and quarterly expenses with performance operating also employee-related certain timing

in all on or be Some quarters. these incurred more which I will trends shortly. of future may comment

third to growth more trends ongoing million retention universities increased initiatives underlying that further contributed to X.X% to Both improved strategic the quarter the Todd by has student by details been supported the that year compared prior well $XXX company as the the on some Moving quarter. Total talked revenue revenue financials. as to around just quarter. for as that

quarter operating the the offsetting million. up at year, income total $XX.X CTU Absent were for enrollment restructuring with efficiencies segments XX% charges across relatively As was processes quarter growth to recorded in the investments student X.X%. $XX.X were in revenue CTU incremental to that in marketing. it prior expenses for at Operating various the to of the our grew with compared line X.X% million flat relatively relates

the third by or increased prior were million to revenue year trends, student million Revenue $XX.X third and enrollment the Please $X.X higher to quarter. XX.X% days for that quarter. by as underlying AIU. to as enrollment both Now in supported quarter note retention well the for growth comparable

Operating million reengineering primary resulting AIU that million initiative. investments as Also $X.X the Operating prior were income quarter. debt charges revenue million at related the income operating the the growth, bad in prior year year marketing was strong $X.X of restructuring leverage while with to growth included most to was of process and compared note in offset. $X.X our

quick see debt retention A we We quarterly financial sequential help of our to financially in by driven bad completing did bad be to continue aid students and on note processing and students. in school in their of prepare improved invest debt, programs successful part, improvement for expense, resources study.

impacted debt bad are the name Education factors mentioned to expense. positively bad few. issues balances are including several collections Requirements calendar, by There account As student for a Verification AIU cash impacting associated the this typically debt timing Department quarter was of and with quarterly previously that academic

Note factors future current benefited factors debt that believe by bad bad could was continue drive the we quarter variability expenses. expense these these to quarter debt and in

the managing our academic on within overall operating constructs making of outcomes. focused are financial and support retention are we general, student framework In debt and investments and to bad

also our I XXXX academic Department the both default wanted to cohort rates institutions. the for of Education released share that

and points CTU in pleased to a XXXX. report points basis XX of XX reduction are AIU that respectively saw We the versus default rate basis and

as at Total as retention. X.X% well to grew as enrollments CTU student the year-to-date improving enrollments. enrollment quarter primarily the supported Moving of end by by of new growth

As expected enrollments flat the for were relatively quarter. new

X% mind comparative were compared year by quarter of keep Please moderated during in new third period in the enrollments performance to results were these prior which as the strong higher that XXXX.

continued to at CTU was growth have that served support this of Todd outlined, partnership levels contributing enrollment our student progress the performance corporate and As positive Illinois consistent mostly investments supported interest by well by now were and Also was in centers the prospective annualized. within Arizona that program. growth

within were up CTU XX.X% we third quarter, student the to for enrollment these for to year. positive experience prior process, the quarter the XX% efficiencies the calendar quarter Total expect year fourth and enrollments enrollment Driven was full new On our enrollments growth part, academic prior for a XXXX. to year organic most and compared note, new at reflect as underlying the increased improved by trends enrollment initiatives, AIU including comparable relatively growth. the while

the Consistent interest to student XXXX, we for served the quarter. enrollments versus levels well year. prior expect third graduate Also improving retention trends prospective full the the were of new and quarter teams by fourth that to well year as growth growth contributed our in show as

fourth positive note, comparable will the quarter, expect further of number this To days of year have a versus enrollment in the quarter. in academic enrollment prior AIU's which a context on also growth we new and put calendar

settlement occupancy in primarily arbitration fees update losses and Oregon to related this Other, related category loss $XX of now related campuses line operating matter. closed operating legal overhead campuses year. reported to quarter an in as million. Closed $X closed for some as services operating associated losses Corporate future residual residual losses including an million of with third professional such campus items. on loss quick quarter compared and of the expenses operating to prior Current Corporate relatively $X.X with quarters expenses will and includes and for A the a the were legal million include

which across of taxes. recorded We the by non-deductible due rate for million a was in which current income was effective income settlement for of tax the Please rate note the the quarter, $X.X $XX for quarters. is X.X% tax of impact is for mostly year, taxes permanent FTC provision difference resulted for a the an and the quarter impacted all spread Now XX.X% quarter. the reserve, to negatively million which that

the taxable For to XXXX, which which rate the are to income. net federal XX% of impact between the settlement. available loss we tax Separately, with offset FTC $XXX.X and of from XX.X%, we be expect our future operating XXXX approximately non-deductibility includes ended million carryforwards, partial

XXXX, As specifically to expect we a result, as taxes. pay not do it income federal relates any to

by of and of cash, as and over We will today's for represents for sale with be $XXX of operations cash to closed $XX.X flows cash for on third sheet. balance million short-term year-end positive $X Moving XXXX residual to our balances offset equivalents, settlement was primarily driven ended core restricted as as obligations cash well campuses. discussion. quarter the which to cash approximately our with remainder an general This lease by outflows available million of related associated cash million investments, the attorney referred our payments increase

in Please year as which compared prior $X.X to cash million in quarter. XXth restricted note settlement, $X.X $XX approximately XXXX. third the include of Capital that the expenditures million FTC September the million the related was balances paid during October to subsequently were funds quarter

year to approximately foresee revenue. For of expenditures be we the XXXX, capital X% full

academic against outcomes the create in and within serving sustainable and us company Overall, two and its us executing is objectives performance better and investments The for universities, student responsible showing and efficiency our technologies improved experiences initiatives well students. investments maintain balance helping growth of results. our operations positive our is to allowing of with

the current serving enable student goal to efficiently starting optimum providing while experiences Our superior within students. we prospective believe is student our maintain to levels to serve us will interest that operations

outlook. XXXX our to Finally,

operating for the This prior expectation reflects new at XX% revenue is to as XXXX our million $XXX the range to full outlook both by million outlook XX% operating versus primarily year. be lead updating in expected in growth believe reflecting income universities to we of which university. driven year-to-date will growth approximately increasing to $XXX growth of compared the in our This $XXX are full to adjusted outlook as million XXXX; year follows; each of performance. We XXXX year enrollment

to our again we XX% to to revenue full XXXX new year performance. range to approximately by in XX% supported the enrollments growth grow For X.X% of be year-to-date expect strong and X%

Adjusted diluted $X.XX in share between per earnings $X.XX share $X.XX diluted range to to per versus XXXX.

to year we as $XX.X adjusted income the For in operating expect the to in the $XX.X million compared to quarter. fourth $XX.X million range million be quarter, of prior

release today the our factors non-GAAP reconciliations. to refer GAAP well Please information other on earnings filed information today's assumptions important for about and and key this as outlook to expectations underlying discussed call about

projects in committed update investing strong a acquisition University. pending while important with capital our priorities. have of focuses strategy balanced allocation building Trident sheet, on close We to will allocation growth organic prudently an balance I and the maintain on that a capital capital also

goal way while further Our is supporting in resources to lead that shareholder enhancing the effectively deploy of increased and ultimate institutions. academic we believe and efficiently quality to value a will our

stability consistency in gives mind, that Directors repurchase consider strength the million the of supported of of he capital as authorized With to The return of part of us up our balance to common and direct $XX through end that share company's our operating confidence of capital Board to stock sheet allocation by the announce we are our have performance the XXXX. pleased a in strategy. to of company's shareholders

the back that his to remarks. turn for over Todd I Todd? will closing call With

Todd Nelson

Thanks Ashish.

XXXX our and students on note. to We of as a worked very field hard are their through on learn enter they track progress to strong We've support study.

against retention which focus outcomes. is overall is driven our experiences academic sustainable on strategy We growth by responsible executing and our well and are student

in and learners from are competitive operating and nontraditional and I current position serve to students we educate education. both students build well-positioned a and adult standpoint post-secondary believe a leadership including prospective

their outcomes helping us quality for determination we'll for the work you Thank entire proud I now for again that and our drive today and of for focus, team academic hard any questions. students. Career the analyst call open am Education is joining

Operator

Barrington go from [Operator ahead. Instructions] question with comes Paris Please Your Research. first Alex

Alex Paris

Todd Ashish. are and How Hi, you?

Todd Nelson

Good, good. How are you Alex? doing

Alex Paris

Congratulations very Look forward. like strong Thanks. looks you're quarter. on on more the It expectations that every above item. to find I forward there. anything Good. third of going criticize couldn't my to

on I March, do milestones at just then are announced get for the acquisition an was that What by are it of order operationally said maybe ask not to few the going end time end have I the here, but you how be to update in the And waiting that on? we questions year? you they thought a satisfy closed the in to doing an have to closed of update year. just we by What it in overall XXXX? on Trident

Todd Nelson

to excited approvals Okay. this Well the we Learning of which to Commission final of very us. know, about the opportunity approve Higher place and Department we're as Learning really through And approval before working -- Education has again, the department able is we're that. for take the as still just the mentioned Commission Higher you both

And it shortly. our is understanding considered that, should be

see but it's of that to again, hard just Obviously the end that will You know the you will place? to -- we'd then love again follow to all it hard take that. for outcome department when calendar goes a And it that can. we But through as And provide. process have to quickly long to take. they we're done as that's how and year. hoping the know as it's exactly by we'll that positive say Once with work the again

their very the comment can't part -- were have we them be at really And as continue as beginning, as that, the performance. of to them potential the But about just as say to far and CEC. excited I'll on we confidentiality, we again

Alex Paris

Great.

the AIU, recently in today, AIU. mid-single at the once year to AIU And that own operations Trident of I you So looking close least universities completed while intention closed and digits. most combine was of two CTU to in margins know CTU obviously the profitability is has just at and the XXXX the XX%,

terms two CTU in get to to of of profitability? margin What's performance? it difference the going take level between What's terms the in AIU the to up of universities

Todd Nelson

great Well, that's a question.

believe obviously quality make they with I place. been as they as and they -- is operation the in focus and sure think of our have AIU main infrastructure, high-level programs to academic that and have have, has well that we

through a outcome again it's HLC reported know think And And team just they there. again so now, a there. very execution And they been management just – And and their we've again a as you of recently matter have visit. positive as as strong I scale. went

can to And that be again far I hope biggest that you year now, see their I of you would, would would hope continue. margin, scaled. reported And think the we year-to-date, we've nice that can as And issue will prior the a we continue continue. as see believe increase. what obviously, versus to And from their trajectory improvement as see

Alex Paris

reason move any AIU it Yeah, mean, structural CTU? a margin definitely. time improved. over Trident I absolutely has profile similar there Is particularly couldn't to why integrating with

Todd Nelson

that you if programmatic is that. the breadth Well, that that things think think programs number AIU, yes Trident the appealing. I that of their that think depth think program of there's And programs. from possibility. as always I and profile I mix that and And of one exists I in very look know which there offerings, very you are appealing the the is was of at graduate enhances a doctoral And the

build think do to them to as adds And give access current does it allowing markets as think to I far that different doesn't we the that. also AIU AIU to profile programs that continue them the of So, grow. to I allow

contributed growth. and the sustainable of that to again think All I which responsible

Alex Paris

Great. comments times either call Well, of our in partnerships total for in I'm what enrollment by prepared corporate wondering on a total partnerships. a you CEC few or University? your percentage corporate referred as the to

Ashish Ghia

Alex, this Ashish. is

are to XX% this corporate for on around about year-end for CTU our call. and last that did that from range during towards update come say what quarter, our year-end we enrollments we we we disclose we have hope call, not and is year but said total So that percentages partnerships did those continued seeing is progress

Todd Nelson

did continued we interest say is we're and by encouraged thing, that one there supporting very And mention investment with that. I would just obviously

Alex Paris

partnership, -- corporate more to University? it way corporate the a see CEC there culture Let of a one discount? a tuition of Is are than partner is it be a

Todd Nelson

Yeah, I multiple there yes think -- are ways.

the provide think of student from range the to employees. level of the that factor is their of listed driving being one though services And one I may their their approved an billing one maybe a to or of way being direct tuition for the universities to program. to preferred universities, accessing their as program number quality access -- education the and exclusive provider particular you all it programs reimbursement to

So depending it the the on services, quality company but has because my the boils the been years. then augmenting to that's -- least the really at which the experience over range down of the I team it does curriculum, program, of with all that faculty, good execution I student think think academic includes and the

there an institution That's of doesn't don't a service it provide be of But where to reputation good. if may lot academically. the them -- they good a do employees, their of level

think combination I to that they us two a continue forward. to has the that really And it's allowed some so success. in of have invest going want And to

Ashish Ghia

And Alex our retention relatively overall these mind versus have stronger population. keep do profile students in

Alex Paris

would retention, so I the better you relationship value partnership and cost as said then student? -- And acquisition from lower assume of because a corporate and longer lifetime corporate better student

Todd Nelson

correct, Yes yes. that's

Alex Paris

based Got on you. All right. question cash. Last

going generate to free with quarter settlement flow you're million it. $XXX in $XX $XXX million year. estimates, of ton you're $XXX million. FTC the after at even the a next Based on million Finished have cash my You

again $XX -- for share put continues year-end cash to and I acquisitions is are on making entire XXXX you if it opportunities year Trident, down a interested to be to the going wondering based growth Title other million you repurchase in executed IV during paid assume institutions? of my inorganic on other XXXX go really estimates. from not market. still even to would going You're buyer's XXXX I'm

Todd Nelson

off buyer's agree last I Yes. with out market continue does a to it statement, I especially there. your be first -- mean

we're obviously it's a those And I we to prudent organic our think But goal invest very there of and one is prospective to out growth. the look think the to education-related. I feel continue given students, that. number still And to for there IV that level quality current that. continue by are institutions Title at like are interest of lot also in encouraged

of overall at developed nice AIU there it's because very which look mentioned, I which I a feel a for institution as that you very effectively. within have service additional shared as opportunities other I really lot students with -- the Obviously that to Trident, the our as I serve academic us addition we've I functions well think know into are CEC. good believe are platforms. believe technology capacity infrastructure you our is like to we that do to think And

us can education think if be think are help -- we to higher things serve investment and industry. think the other really add I overall I the would we help CEC, And for that can we that education industry. there I that would a good

Alex Paris

thank taking again, congratulations the questions very for quarter. my on much good. you really Well, and

Todd Nelson

Alex. Thanks

Ashish Ghia

Thank you.

Operator

with comes question from Please Pendy Greg next ahead. Sidoti. Your go

Greg Pendy

of the when ramping guys started when Thanks made, you picture a winding mentioned Hey kind of lifecycle for call sort you of spend on see Todd, the down. I taking may it questions. the think really have up the when we've sort off? us of and just Can my peaked to initiate a you tech spend give you've guys. big tail of earlier tech the started kind investments of to

Ashish Ghia

Greg technology about spend you're the talking correct?

Greg Pendy

started through it just you down? it to and Correct. kind behind when of bring wind the us kind really guys money Yes when putting started of

Ashish Ghia

and we invest said technology. ongoing an about there in schools we invest We coincided to spend we in continue teach-out years our it's investing as technology. started back that. we mean And started a that with really few I the and of continue speaking to completion

what and that's level they to troughs that. of in a will There So, And invest our going that forward. in necessarily students. technology is spend you are that we continue see peaks not stable

Todd Nelson

the think that, do it again I an really continue robust with more the for retention beginning the the we outcome continue education we'll do that because think that the that. to ongoing -- And it you student. starts the and enhance we're and that's Yes, that can at thing hence you I to helps platform to and and deliver the use

major them better second year us The made helping a it the information we've students front provide really efficient process. what this and end And to investment more is on allows be with more timely. effectively our technology boarding in and that

we'll And constant later in that as type that. year, bring more next kind investment. investment would that of a add completed comes occurs as that see of that probably, again the instead kind a the we that We in of next a stair-step one into that more of of and just -- more that's level business we major of

then the analytics students we've again, like in the with in. last way part our to just that material master platform better. Not really to a invested education us but students, allows does the much only fine-tune us Intellipath prospective that it And the that the help is again data helps

And so, learning analytics see front-end platform are them I you you'll technology. of as don't of time I well have again versus where those kind continuing. with data those like -- our as projects see the investments that over -- Again I those more the investments some think bigger those your study,

Ashish Ghia

and technology financial levels as as to sure opportunistically our And that Greg keep very manage in commitments the overall are spend capital we continue will go mind spend in we of make in as investing operating the those are constructs far forward. we within concerned and and

Greg Pendy

really the that are just give debt final of your one can more the appreciate know aid? But of kind things it. us it. the on a than move one, lot retention? initiatives bad what I color bad key drivers it certain that helpful. debt. your in And is got then just I I in of you all That's earlier making Okay, -- view But I guess drive Is sort impact you're that it can it there is financial mean others? --

Todd Nelson

verification for is An I control. a there verification longer. is in very because Well there's complex that can you of there's takes that change things a of would can't only that more the control students it's think you example of level -- things are implementing the that and Department be, actual Education your example it process there's not

obviously revenue. percent debt And drive number That's so as up that a of your would one. that bad

Again look they of at tend a you have financially. to if -- if think be doctoral, your against better, you stronger programs programs, certain a -- graduate composition I students. profile

little you a bad And debt there. a result have so as probably less

that have it. affecting you So

that And variability that one then impact AIU. retention things And you But yes academic retention of I on has affected that see a aren't an that. it. thing we the will see affect as really have time, something artificially it to is has some obviously calendar other over go. ours and And again, lot you'll go up think that's continue of been impacting of that

But we saw good improvement this quarter.

practices But because have main I think really if the and them and you'll some means of for graduate we levels. of commitment help on affecting what have other issues timing basis. and see students that bad quarter-by-quarter the that to best to a are get variability these is do through debt our

that's the I to help. right decision think

Greg Pendy

lot. a Thanks helpful. That’s Perfect.

Todd Nelson

Greg. Thanks

Operator

would like back to I This concludes Mr. closing question-and-answer our over for session. Nelson to the [Operator turn remarks. Instructions] Todd any conference

Todd Nelson

again results to with thank we us you and look speaking you quarter. the next for Well for forward we joining

Operator

concluded. now has Thank conference for you attending The presentation. today's

You may disconnect. now

Perdoceo Education (PRDO) 6 Nov 192019 Q3 Earnings call transcript