PRDO - Earnings call transcript Q1 2020 | Perdoceo Education Corporation

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Operator

Thank you for standing by. Welcome to the Perdoceo Education Corporation Q1 2020 Earnings Call. All participants will be in listen-only mode. [Operator Instructions]. After today’s presentation, there will be an opportunity to ask questions. Instructions]. [Operator event this being is note recorded. Please

now Brooks Hamilton, would like ahead. to to over conference the Investor turn I Relations. go Please

Brooks Hamilton

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

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

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

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

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

Todd Nelson

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

Before as social first has economic COVID-XX challenges our unique the me the the impact as pandemic I that quarter, let communities. and discuss presented the acknowledge to well

the our employees priority. now wellbeing our Being and students, that of a top scalable online. of point, the classes were learning infrastructure, classes are is help of institution, also our our communities primarily and and campus-based students health online. online Further, To already taking innovative technology with students taking most

tools work operating to impacts costs work remote thus and to Additionally, the remotely. a resources necessary results. material not we employees with costs to have our remote to and COVID-XX-related environment and transitioned students transitioned far, and our are other of including employees provided environment, us to

well wellbeing are serve strive students and aspects operations our We of will our and promoting monitoring employees health to communities. and of the also our closely all while

highlights With in that sustainable in momentum with expectations. positive the our at responsible entered This both of came background, that ahead against resulted let us discuss and which quarter XXXX results the first our of quarter. growth. objective universities, execution We

prior first, initiatives and include; influence student positively in and to that highlights the in as quarterly operational retention investments quarter outcomes. Some and growth continue processes revenue income prioritize key academic experiences, student-serving versus year operating we

today’s We’ll announced student refer Trident which of remainder of assets all our this universities levels both interest, Two, early enrollment served the March. previously student as transition acquisition positive, well prospective Three, trends International discussion. for acquisition was was support at continue completed substantially the infrastructure. to of asset be reflecting our Trident sustained of of in to University by acquisition the

Trident a Trident’s AIU acquisition their faculty, our welcome academic institution smooth students, into on proactively and We are have programs. with evaluate The integration combined students and staff working future is academic and to offerings existing a of of institutions strategy in acquisitions our of broader to educational pleased organization. resources, serving program accordance into quality range programs enables the been continue and with and to

employees invest looked remote to to in that environment, and continued students lastly, functions And technological and students. and strategically enable staff student-serving to to we our transitioning further our our improve our support better while serve and capabilities enhance

expand shortly. successes the further I’ll quarter on the some of of

the in before provide and the Ashish our I will thoughts outlook add to more financials then cover some XXXX update of end more around call. an closing detail

significant with for was $XX.X Now the certain the the prior reported per $XX.X or to driven our operating quarter, share, XX.X% improvement adjusted a million non-cash year which million, per first by share, diluted revenue growth quarter. performance net Adjusted $X.XX items, $X.XX. primarily income earnings We our diluted was increase and universities. operating excludes of while income at from

the prospective to believe And I educate focus we due new enrollment XX.X%. and enrollments for enrollment nontraditional with Both continue including quarter, engagement of retention, academic increased student universities teams. We to that XX.X%. across well total outcomes our and March and on primarily learners. growth academic positioned up to X.X%, students, growth and support serve current of student CTU, XXXX adult experienced XX, enrollment At are as total

student provide our We supported for to various is and using relevant increased functions effective teams within most support support to results students. by the and were are enrollment increasing, technology an these process. are Employee level encouraged of student our by that CTU’s efficiency tenure

maintain current students CTU best partnership during and our times. coordinating its partners corporate serve with continues to their to program uncertain these is

beneficial. partners collaborates partnerships team programs educational offer center organization’s Our dedicated makes these our with to which the around academic corporate that mutually priorities,

CTU admission experienced and With are core of these teams and on improving student have been orientation and serve students. investments by greater effectively prospective current continues tools. learning. CTU various with as to to student engagement also continued promote focused the success initiatives have pleased have technology improved we and and further advanced Overall, experiences – in augmented which teams, by advisement these mind, sequencing We academic and efficiencies efficiently

increased the prior compared to XX% XX, a student year Now AIU. enrollment result turning of as acquisition. the Total Trident to as of as March XXXX

given number As enrollment days enrollment of results by in quarterly AIU’s the reminder, and academic significantly quarter. any resulting a impacted were calendar

at There were negative XXXX XX.X% partially positive The enrollment XX% versus prior the of of in the quarter quarter. Trident AIU acquisition, decline days approximately offset the in of with the less the resulted was new a impact less prior impact enrollment versus year quarter. first year enrollments in and days

believe in enrollments, the underlying growth and after first even new to excluding from in which positive this to experience the days But, we organic continued revenue acquisition, growth variability student quarter. Trident in contributed impact AIU also enrollment

aid invest AIU’s to continue functions. and in We admissions, financial advising

well to serve student focus students support aid getting they and interest AIU financially the financial are prepared teams Our holistic method to on utilizing prospective processes, through a financial at continue equipped graduate before aid start teams and to students school. admissions our

positive to progress Increasing relevant and we and the seeing use academic of technology current we efficiently and to teams Trident enabling to its and are support our into effectively within faculty student programs, is students with Overall, engagement operations. provide the its process. our efforts integrate signs advising AIU’s staff pleased are students,

serve in a and our focus midst remote of efforts and Even to employees educate technology, environment, transitioning a of continues be students. general, to students to in our the

and the customized a and and to machine focus using are technology. within processes faculty to are app, enrollment and customize help a learning process student expanding AI for analytics our provide experience areas We mobile use learning better A our outreach enrollment its data student current students.

Education financial Department the Relief, the of students. our disruptions A CARES Economic they on for and sudden to Act, the campus. of Under Act, and Security Coronavirus note challenges positive Act, CARES the funds face assist students its has the closing with Aid, and in or impact them the on provided

students to were to institution. funds half and the to These be have awarded the

light be to the AIU of institution not However, these have will keeping and our but XXX% for them to of of the assist COVID-XX pandemic. both students these any CTU committed funds funds in

proud faculty still universities student extremely staff and education. have on safe, commitment help the their delivering while and I’m to precautions conclude, To our measures at undertaken of support various communities and keep to both who

and with support closely they to teams engagement with indirectly by study. necessary Our faculty who providing and increased current complete the or been working those as have students affected are were pandemic, the experienced educational advising their them directly flexibility and with have

The operating responsible against performance, consistent helping our these our navigate us times believe to while of by uncertain XXXX. we exemplified our dedication and and commitment fulfilling universities is our work execute are and of our are well employees growth in sustainable students. hard to our These efforts positioned objective

or the Department U.S. update Veterans Affairs, letter of A on VA. from quick the

for a with they to have We are in believe should to their we our any of about period necessary XXXX. have to are the extended action with days that dialogue information has VA corrective detailed VA current their VA June intend this processes, by VA deficiency The eager requirements, during this taken. and their in that we to in demonstrate with identified which any compliance We the and period provided X, previously was quickly. the matter letter review XX resolve engage the

XXXX items. With updated call a among over outlook, acquisition, sheet detailed for to more XXXX review hand that, Ashish the first balance our reflects I’d to Trident results, like the which of other quarter and now

Ashish?

Ashish Ghia

XXXX his I otherwise first comparative comparisons the versus XXXX updated year unless call the the closing you, and discuss to All period, Todd and before review remarks. quarter balance Thank outlook for results sheet will back then handing stated. Todd. are our prior

year-over-year comparability. will X, Before Beginning begin, AIU quick for the I the XXXX, March acquisition. incorporate comment on results Trident a operating

or operating Total results an $X.X As coming million of positive an momentum reflect XXXX. $XX.X income XX.X% Todd income $XX company first mentioned, into the compared million. as to improvement the million, of was quarter operating

and to income, is We operating of the significant was Trident million quarter more believe measure range underlying of to $XX.X the non-cash performance. exclude the from for positive increased $XX.X above impact of certain $XX outlook the our to adjusted XX.X% the operating This reflective if were we items acquisition. which end even million, and high excludes

the earnings million was quarter diluted is per share, more per per up performance, was adjusted which the XX.X% for operating to income $X.XX believe of or diluted we share. share, while reflective $X.XX $XX.X underlying Net

revenue The well both due by supported that universities, our improvement in growth was underlying to reflecting operating primarily performance the student-serving at was enrollment operations. growth

Also first acquisition, was well Trident timing which operating of expenses. quarter as certain March results the on our as benefiting closed X

these monitoring cost offsetting in partially were costs the our functions with and associated compliance efforts. and positives of investments student-serving items Some marketing

the by million specific increased $XXX company to details the million more prior revenue year around to as on $XX.X to compared quarter. or Now X.X% Total quarter.

revenue $XXX.X supported our income $XX.X was to to segments, million at relates trends, enrollment $X.X up XX.X% CTU or million up quarter, operating it was million while of the positive for X.X% As by

perspective, marketing. in offsetting investments student-support be efficiencies various across prioritizing incremental CTU expense in processes, an with diligent continues spend initiatives towards to From administrative

Trident the acquisition. increased in AIU offsetting in growth underlying for at investments to trends million student the well XX.X% revenue Revenue Partially growth increased and $XX.X by marketing supported support enrollment as was processes. quarter, as the

included Also operating restructuring were XX.X% with up in acquisition. the costs $X.X million quarter. quarter Trident and income of integration resulting results was certain the first year from prior the The associated

debt A bad quick the note expense company. on for

they We the that resources their to financially note, prepare continue quarter. invest On are students is debt to of flat prior so percentage more to and for study. revenue that likely to of bad compared as prior school quarter help year program relatively a as complete

still are expect these recent results. fluctuations, we While with encouraged we

student growth at versus of Moving prior X.X%, enrollment by enrollments Total by CTU year. the to enrollment. grew new supported XX.X%

our reflective admissions this functions. being mentioned, consistent student Todd As are growth interest levels well in that the of is prospective by served and advising of investments enrollment

new second of XXXX. expect for grow at full we year the forward, CTU Looking and the enrollments in quarter to

AIU Total student due the for acquisition. the increased to enrollments at quarter XX% Trident

of quarter. academic the days which XX.X% the of quarter New enrollment enrollments impacted a as for number negatively the calendar, for result decreased the

quarter year-over-year. between correlation given enrollment underlying enrollments tends the Excluding of quarter the days a in enrollment impact AIU’s have organic quarter. the therefore student new in quarter, Trident the believe year with number and AIU’s the to growth XX% enrollment of XX.X% prior days and There enrollments we be new any a would strong first less reflect new acquisition, decreased than results

of given student new number the enrollments quarter Recall on at the in has AIU, calendar the that a impact that quarter. days enrollment significant any for specifically academic

a second Trident as As approximately new we of at as expect days result result the primarily of AIU as impact, the to more enrollments a enrollment this growth XX% for acquisition. show quarter, well timing significant

AIU is enrollments first first the expected show of the is that more new quarter of XXXX, basis, to in positive a decline than growth the impact on increase offset This from combined such even half the to after XXXX, the from acquisition. for Trident excluding expected

a with academic each expect to XXXX AIU to ahead, AIU’s basis, enrollment we year is XXXX, Looking quarters a quarter. relatively XXXX. respective for days the And comparable number to of compared of for the experience year comparable days consistent on and calendar fourth to prior full quarter year. third we for and the enrollment growth XXXX, be as Also for each full enrollment year expect revenue

A on as improvement associated associated campuses losses the year losses quarter, the legal and operating $X includes in residual associated campuses. quarter fees professional first compared million update prior category with to were legacy quick Operating by corporate other. with This in million the approximately matters. with $X.X closed lower with primarily driven closed

effect of income was rate and income stock-based for of resulted The of to reserves XX.X%. by benefited the of effective taxes the which to rate recorded in tax million Now taxes. current for X.X% approximately the $X.X the provision release tax We a for related tax quarter compensation. tax an quarter,

rate For material effect to XX.X% benefit our tax XXXX, tax be not the of And and assuming expect the any related compensation. reserves XX.X%. tax of between are stock-based to we and release we

not estimated $XXX.X million for income. The reserves we XXXX negatively tax that of and taxable year federal rate net the in approximately are which tax carryforwards, expenses deductible effect offset available is operating full Separately, of changes expected are purposes. due to future tax with tax to ended loss to impacted be

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

referred a equivalents, over cash which sheet. represents the to XXXX. today’s a our with and let Now be decrease balances ended remainder We This short-term $XXX.X few cash as spend million me reviewing for of investments, minutes of balance cash, of will available-for-sale the $X.X million cash discussion. restricted quarter year-end

are; at were of the an the million cash and per which the share. to X.X made related approximately shares to in Key total drivers repurchase of payments acquisition operating a by of flows reflect matter, average already offset relation activities, arbitration’s price cash in million quarter settlement positive of cash the from for Trident outflows of Oregon $XX.X $XX.XX

expenditures the $X.X first approximately quarter. prior $X million to million year Capital were as in compared the quarter in

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

approximately working includes the University adjustments acquisition to the of The are cash price the the of assets purchase purchase million, is students, pursuant of all substantially faculty diligently on X capital and on and to and for estimate $XX seamless completed final March for International We staff. incoming final a which agreement. an to Trident subject integration be expected working is

We XXXX. approximately quarter have through already $XX million paid first the of

sheet. reflected However, that amount and restricted includes showing our results. $X million deposited into sustainable an escrow investments is cash its account, which balance with as responsible student-serving positive growth against technology executing in is company and of initiatives the Overall, well on objective

observed known to costs associated impact material have we the indicators integration known the acquisition efforts. outlook contemplate XXXX trends related from based but our from COVID-XX date, our COVID-XX to are outlook incorporate any accretive restructuring not with future Finally, to our reflect updating does Trident the on outlook, operating the impact and to and cost results we estimates Further, and on includes the to efforts.

to is versus range updated per in adjusted and range year objective with full The growth. $XXX as earnings XXXX year follows. to share forecasted be $X.XX as between Adjusted the operating to $XXX.X XXXX. $X.XX million XXXX. million compared is of per outlook and sustainable overall of diluted income in million responsible This $XXX $X.XX is our consistent share Full in to

enrollments as in AIU. XXXX to the company’s in to show Trident the the more of enrollment and quarter quarter significant second of student AIU’s reflects at growth new expected our acquisition. due For growth outlook as XX% days quarter outlook, second second enrollments the well are new CTU expectation

million $XX.X company to in the operating adjusted the income expects $X.XX share $X.XX the million $XX earnings $XX and to range be in year to the adjusted Further, to prior of be year. versus million of in $X.XX range the in versus prior diluted per

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

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

Todd Nelson

quarter continue operating execute with first on Pleased results as Ashish. strategy. our our we Thanks, to

a While we large, of on experiences, the academic focusing uncertainty focus and our to is student communities our world to students outcomes, and retention and employees. the the – current our presents challenge continue on positively at will while wellbeing impacting

I focus Thank learners. believe on postsecondary we’re us for well in joining building a online leadership we a positioned again and you position and students with education to are serve and nontraditional current today. prospective adult educate

And we’ll questions. now any for open the call analyst

Operator

you. Thank

session. We now [Operator question-and-answer the Instructions]. will begin

ahead. Dan comes from with go CJS Securities. Moore The first question Please

Peter Lukas

I’ll It’s stand start you’ve you the weeks, talk afternoon. picture for so now a get Trident to out Can Hi. the question. Pete special had learned what Dan. several far anything last at that you hood with from under for about Good chance Lukas the big you’ve there?

Todd Nelson

is been the Yes, everything team, probably Hope well Thanks. your of their their family. most staff, their is faculty. the with you quality encouraging thing and that’s has

understanding of to very the an We’re continue setting. again, and by, integration-type again ability their in industry and to encouraged their operate execute

always as you that’s have the again, of their a the as of concern coming think that team experience shows, institutions that when support AIU do together. two But maturity those services. been Perdoceo, and think I well I and

it we be is. it think I far, going as but didn’t it expected thus well So would as

to We’re that breadth to ability the the us. that get optimistic as programs from well of depth bring we later benefit as and the into year, they’ll

we’re thus encouraged. very So far,

Peter Lukas

seeing there what the now? if That’s with Trident, that fully AIU, any or high measurable great. across you students by their partially unemployment CTU, education percentage that. could changes the you us employer? Congratulations have funded or including And And remind just board, on in these again are their uptick of

Todd Nelson

think those on as with that. that providing But and that Ashish in we’ve we material corporations – the change last pandemic reimbursement. a see any any comment impact as We far at relationships I’ll not our the in lasts don’t quarter, long this quarter. as general, We the change. nothing monitor how point which this disclosed at continue that But Obviously, I year we’ve of haven’t this we did as any on had let goes just to percentage. that. we’ll on point, noticed to meaningful and

Ashish, you want to that? to add

Ashish Ghia

Sure.

XX% we lower we anything As roughly about Todd and for enrollments of AIU come much XXXX, partnerships CTU did is quarter. disclose don’t But than that. at say from mentioned, this such year-end

Peter Lukas

Thank Great. unemployment were if of then the in there levers in an Very think And fact you. what become a to you issue helpful. prioritize other profitability? do to terms still problem, pull you could creating

Todd Nelson

in reimbursement do to to this we have to area. point, some Well, enrollment we areas, to But areas if available in of resources to there’s other say very in at corporate then maybe that would can as to an the depending that. corporate the But those redeploy we and still difficult situation again, those those our ability a how help. things area, far are the think again, that areas, we work see not pullback as But do resources again, staff were long – to I are if the continue see that with other goes. we areas those companies on

Peter Lukas

think believe Are do which million Trident, being approximately of me on like the operating adjusted addition income, the X incremental in modestly, went basis. Great. just carried just up Thanks. despite adjusted or an guidance. income headwinds to operating to I one EPS conservative? And think $X annual and EPS building million some you on of looks $X.XX in an numbers kind million adjusted question last and of EBITDA you XX terms the one It I for $X.XX

Todd Nelson

a Well, again, it’s year. partial I like only said,

not of especially one. And expect. associated the we think about full you’re cautious, don’t combine don’t We two, some in optimistic we number are be that there the contribution right. we – want too costs overly integration bring year. this So two the Number that. That’s year that you’d I we’re to as

that? add you Ashish, want to to

Ashish Ghia

with it. that’s we known some as the And as think incorporates I mentioned, costs No, know, associated COVID. also also, you outlook

a partial So year. once the account, take that you that into fact it’s

restructuring addition, we integration have costs. In some costs,

account that think I math should for there. the

Peter Lukas

on and Very you helpful. Thank congrats quarter. again the

Todd Nelson

Thank you.

Operator

next comes Please Barrington Thank ahead. question go you. The Alex Research. from Paris with

Alex Paris

you? are Hi, guys. How

Todd Nelson

you Good. family? Hope and well with everything’s Alex

Alex Paris

on guys. of last good rare to same is about you talk this here. weeks. everything you of the Yes, couple quite in and Hope to for to wanted the top raise, the wanted the the I I funnel. you environment beat congratulate over

relationships You run, more noted with around. positive online. and much the worried look be to more does are at to What you on terms are previous partners. in to being go change with the accepted. going One funnel of like? of top existing time about jobs, school people long the question you haven’t that to inquiries, noticed is there home, One Have home, everybody funnel then to or seen But the money, worried about their negative the argue top could the from online impact in there’s your could investments argue the rates? leads, of running any the your conversion kids changes of corporate

Todd Nelson

interesting It’s such least experience make. think level again, point type interest a good tends because, do higher I to my mostly prospective at that students, there this of be you environment, from of that’s feel as trying amount a in kinds concern from themselves, that – prior things. to of people a all because of certain think marketability, think their their and ability those are again jobs, a jobs, keep that we I to Yes. there’s get there’s improve I result

that. see And so would you typically,

the think can time flow, of to amount on to with would results from Again, the a increase. that as their people, it from perspective, to deliver from was you is to consistent a where education it’s focus wherever this length as, seen going are lead it, a new think best advantage well. say predict see again, our the I overall haven’t encouraging. any quality that But the slight just student our quarter, hard of to I I – do of our And to disruption, way probably economy certainly you they a is the bit ability as we obviously improvement. very an far to said, little advantage the and from is at and again, remotely, with depth challenge that’s as going home face, but obviously, say

hard will to that is that be the soon. hope throughout back to in how life on year. meantime, said, seeing stable So say the get again, be as rest that thus again, we’re normal funnel, of encouraging. our to to But top will the the the of you continues But far,

Alex Paris

students anything versus Great. noteworthy this COVID And then started corporate aside, in stop-outs or situation expectations? dropouts normal since your

Todd Nelson

Good question. retention encouraged Again, relatively from a things. stable. perspective, I say by we’re Again, would

seen to We negative if But like he just that. if add haven’t impact. any me to really let see would Ashish,

Ashish Ghia

No, nothing my I end. think from

relatively jumps Todd as nothing cautiously. out. that we watching But I far, And think, mentioned, trends all very are it’s so stable.

Alex Paris

about last series I that And then it’s the a questions, the campus-based not realize small in number. how number. question of It’s students? big a

stop-outs, know there XX-year-old move hey, assuming fully case. there, You’re forced kids to the my pretty both to been that? in who range. But online, anything I be talk not across with traditional to some says, that the comparable. We that have discount, are which requests, anything every associated And where’s that costs is parent discount online, those to should noteworthy all XX the and XX% have universities. refund I go schools online like

Todd Nelson

normal, on-ground not over not those but additional requests Yes, any an online XX% are students not refund Ashish, being to it’s you? you’re I’ve migrate And students have seen format. you? Over at was online right. to of have already. specifically, that look interesting our Again, did I difficult It because

Ashish Ghia

knowledge and seen No, either. haven’t I not to our it

Todd Nelson

that to bring normal back things first as able One those that back the would of little about the nice bit be more a be is things get obviously area to students. it

states. You the have states, do not Colorado. and – Those know know, we three or as bad example, locations we as impacted that probably states for you those of other as the Georgia, Texas, that the some states in four only been have campuses campuses are have are

students a engaged is bit environment on-ground point, far, And comes. little so when again, in probably But conducive there environment. an in more been the again, the at time the locations online so that this have

Alex Paris

of of you it? announced you campus still clear. campuses? to that any Have date a watching for be Just at are Have these returning to you or kind you’re set that

Todd Nelson

not. have We

this had Atlanta some at school definitive with had point, not have certain in things have a We Texas. and date, obviously few in no. discussions at programs a our looking But

Alex Paris

us Perdoceo? this maybe maybe conversations future. sometimes online This – one regard said the reported creating along hybrid recently that opportunity. And And could very tech sometimes of for in to I for given to when first should which period past, ed long-term expertise online, demand for with particular traditional universities this reached the during any there think are about fee-for-service forward accelerate OPM basis a it, out new pull create But universities hybrid And in on company said be program have an the I the crisis well Perdoceo, traditional or you’ve online, lines Any any towards crisis something companies thoughts great strong crisis, to be that the bodes a to just And given online. offer you, off. is able opportunity for could online, trends know your those strong behind this of forward. your operation of talked already services going help? in shared there services manager to

Todd Nelson

platform, as well which to the a still do, as but you teach only that find of a because, online to on-ground with a a not We very experience here prepared number opportunities been are our an we’ve online of an massive traditional environment. trained large had of they’re how produce have outcome and large more though, managing of this having need to this them said outcomes. you numbers, any look online that with going think, to result of do faculty some do And I not as universities students and most good is discussions academic have as operation accommodates there to again, to able platform point. level as of think I in

of that seeing think So date, that any but moved I things they’re that for future one to and as will that I look be numbers large for seen to that the we’ve think a how – of now discussions, deliver to opportunities sense again, from them partner students. think with not because some have of the online, some they’re they’ve working to understands do challenges had it to that experiencing, there would least at I make

Alex Paris

and Great. my go Thanks again. beat to taking for way Well, and the raise. thank you on questions

Ashish Ghia

Thank you.

Todd Nelson

Thanks, Alex.

Operator

Pendy ahead. Thank you. [Operator Greg question go from Please Sidoti. comes with Instructions]. The next

Greg Pendy

for taking my Thanks questions.

thinking Just should of the prior AIU guess is acquisition half within revenue quarter, we close? Trident partial Trident given March just versus I just the be real from with the second year? And the a downtick about student this at reflective contribution quick, how just per

Todd Nelson

Ashish, to address do you that? want

Ashish Ghia

Yes. Sure.

way total together look will you from this with as like at denominator, And AIU, think, of to normalize best a at only revenue. student all quarter I to for the but one revenue Greg, to month So have and these need you will look a quarters historical per couple trends. students point, the your to at of Trident, trends yes, those have

there. will noise that some in So have

on spot are that. you So

Greg Pendy

risk that that is calendar risk little given the credits, worked difference maybe the Okay, that a we we – great. of or in integration And you is a Trident, next over with you’ve also and think something something maybe through integration poses guys quarter two? bit or of also as then schedule feel just about just that should

Todd Nelson

different keep Well, because will, will a is to that. and same again, model so their calendar. their Trident want disrupt we don’t little bit they

a As smaller know, much institution. it’s you it’s a –

there impact enrollment So significant again, not number far XX%. said, a as coming but as is as a it But of quarter, an amount this impact. days, significant upside Ashish have will of

year-over-year as of has obviously, similar number those year-over-year. get so larger enrollment said scale, year-over-year, a we that relatively hopefully we more said, days there’s to that similar big a as goal QX of days will far expect of be to So we as And number the stable. the a as And in second enrollment then will Again, number it’ll QX larger, again, as a have of factored are very quarters he improvement. amount and continue half, have in. – been

think think our to impact. I a really more term, academic you in assist for stable calendar see term, AIU. much have short But long again, does I that So don’t ability

Greg Pendy

Thanks helpful. a lot. That’s

Ashish Ghia

Thank you.

Todd Nelson

Thank you, Greg.

Operator

does Thank you. and for That today’s conference. may disconnect. Thank questions no you this today’s now time. at presentation are further There you attending conclude

Todd Nelson

us. Thank you you. for Thank joining

Ashish Ghia

you. Thank

Perdoceo Education (PRDO) 10 May 202020 Q1 Earnings call transcript