PRDO - Earnings call transcript Q3 2020 | Perdoceo Education Corporation

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Operator

Good afternoon and welcome to the Perdoceo Education Corporation 3Q '20 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Mr. Wyatt Turk. Please go ahead.

Wyatt Turk

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

to for Securities include uncertainties XXXX, not by in these for These and but Section this business remind information Education from earnings release those risks assumptions currently cause XX, December materially Perdoceo's statements. the today results, as differ filings available you required XXE future and report no and to, identified the or other by undertakes made laws, company those in on annual the could update include, uncertainties and Form performance, changed actual defined expressed that to on to future obligation forward-looking afternoon's Perdoceo that Act Commission. These XX-K forward-looking in expressly with me the and those or circumstances developments ended XXXX. as statements reason. factors to by any Exchange Securities risks events, involve implied Let remarks the opportunities reflect statements and based of are subsequent prospects statements Exchange and year of limited or and are securities Except any made factors

accompanies The to non-GAAP the that With today's to directly and to be but to and Todd? as supplement, to I'd the remarks of release that, Todd most over contains the information available In non-GAAP website. Nelson. like intended quantitative of page discussed today within the financial the to turn to measures. not GAAP call reconciliation company's as the refer financial measures well Investor Relations is GAAP measures, call addition, are which other today's comparable substitute earnings

Todd Nelson

Good on and afternoon, on Wyatt. hope and students, for us you well. today your you, families well-being health are the everyone, our We focused friends of joining staying I call. and communities. Thank faculty, employees our all thank and and you remain

We our and our dedication Perdoceo to of and provide service core focused value team way further to has task on their for and believe the and prospective safe students programs a these which and refine students validated reinforced environments, we and continue our times. commitment educating online for remote resonating our The of proposition serving remain learning. proud and are of learning entire well universities during the primarily to and employees the online I'm believe that with learning, difficult I pandemic educating learners.

within student objective well are continue sustainable responsible support our our make growth. quarterly We and to against targeted as our executing processes. results, by evidenced investments And of

discuss let's the Now quarter.

are both pleased initiatives across student for admissions well academic student our quarter advising on on basis quarter support programs, and performance, of functions. student reflecting and we impact with well year-over-year highlights included: growth and was prioritization as our experiences. operating focus processes outcome our We continued third ongoing positively as Key and which enrollment believe that reflect enrollment levels CTU our interest by prospective of for which the served a online AIU, first, consistent our

growth income. year-over-year operating Second, revenue in and

current the efficiently within us and prospective technology the model Trident engagement school. outreach cycle, brought IT AI our and Third, to developing educational acquisition. to to students academic and our functions. infrastructure. to range been which and by security, realizing our remote and and further upgrade maintain have data customize the Overall, arrangements Trident a in student's Fourth, offerings work broad decreased integration of as center mindful to well serve as enhance with are enables students capacity investments the the Fifth, academic of efficiencies with our stability support resources succeed across to unique continue pleased of further and Trident with name, life we support we AIU progress, programs, back-office experience applying stay them while help and

for to was Now or excites was significant income to quarter. over increase third prior the quarter. the income per year a X% $XX.X diluted the million growth our operating primarily quarter and share, share, We attributed noncash Adjusted revenue operating adjusted $X.XX performance earnings per $XX.X of net reported for diluted million, while was certain items, the which $X.XX.

XXXX, prospective student as CTU XX.X%. both XX.X%, and enrollment Additionally, student growth AIU support in new to for September students initiatives outreach Investments experiences. investments while supported the We and believe with XX, have at academic student up process student positively current enrollment refining customizing outcomes impacted total of our technology for further students. of enrollment contributed and initiatives by growth to our enrollment quarter and are these aimed

to CTU school. admissions increased better enrollment and initiatives, first, prepared that Trident across growth X.X%. the contributed also to student of for enrollment which quarter, the the functions, At enrollment supported of total be tenure by: growth growth advising growth enrollment our In process for CTU, increased enrollments student X.X% further efficiency by improved our at quarter. was addition robust organic student for and new acquisition to This the assist these supported prospective the training students

to our student basis, helps unique which and prompt outreach us differentiated a for evaluate providing grades progress on students. advising model, and regular Second,

A on in in mobile which investments supporting quick growth AI, Third, chat last, extensive X-way continued the partnerships. of the and student comment corporate retention. corporate And function app are technology and usage in partnerships.

at develop, pleased the We we to programs experience by higher experience the student total the in prospective year we enrollment consistent to supported to we initiatives to program will investments quarter area, and in participating continue students In new as compared student various typically necessary and continue time but of take the course corporate make retention we partnerships and levels Driven in investments growth have this this partnership prior general, to program. the the by progress interest, over these quarter. with support of to these Overall, fourth in the initiative. made expect CTU. of invest the are CTU success and

on previous AIU populations AIU as of American to InterContinental system to Now a legacy system or unique new benefiting AIU. University The AIU needs. has the quarters financial will framework we XXXX. system, providing AIU's which system segment the The on will serve and implemented a will comprised encompass and American consistent in model. statements University the provides refer academic university of their AIU InterContinental simply two to Trident's our continue practices model the for programs Trident continue of with universities, Effective today, system. system our educational with is best The System, a University International. of student its Trident university the AIU. programs and serve from operation American unique InterContinental AIU masters models no better both University system structure diversification and while model learning University. to students' and The impact and doctor to

we unique system. be will However, Trident's not because processes part Trident statements the of as to model, and AIU regarding AIU's methods applicable make of operation academic some

supported as well of as consistent it AIU's growth acquisition prospective reflects XX.X% enrollment total student by impacted the XX.X%, growth as the of by quarter. levels were interest. These positively end Trident the new quarter to increased organic relates for As performance, student enrollment that results of the of operating student

As AIU, has comparability. impacted enrollment Trident, a often calendar the academic reminder, of year-over-year excluding

And no However, third versus the as thus, the previously year prior comparable quarter shared, impact enrollment number quarter. enrollment was year-over-year of a there comparability. base in on

perspective, their supporting the for students transition continues school also its Teams modeling, session. new student proud test to to We to help measures AIU's and conclude, compared believe they through of a part and expect student in student timely education. a better their and of environment we methods The will student ultimately a that growth have quarter team, learner's the fourth targeted about quarter this on year. student regularly focuses its delivering retention is all are academic engagement and operating model as success. provide of various intervention, expected information enables by with degree predictive our the AIU to with testing which From may the be register Consistent data transfer success. enhance student-centric student's see precautions evaluating approach, Overall, experience, lifestyle. AIU which that across various approach school operating who are backed same new to student-centric to retention very a counselors We fourth characteristics lead first student a credit, to Perdoceo such engagement. from to the are and is AIU's uses academic that model time for etc. Admission and and year. on an the academic proactive continue full and students end commitment last to preferences, student's expect education previous pleased and as support analytics undertaken I'm total To benefit performance enrollments aspects

results and and We like of call for are XXXX third to quarter educating the I'd outlook. our Ashish year-to-date detailed to our sheet more these results, times, a operating our we hand balance reflect executing and serving believe despite review students. our commitment XXXX well over and challenging now to

Ashish?

Ashish Ghia

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

I a XXXX. Trident on Operating Before quick now for begin, March reflect AIU the acquisition year-over-year comparability. commencing reminder results X, about

of prior as Operating million items quarter Net $X.XX quarter $XX.X to performance. income $XXX.X operating by million, the income million was to increasing Now operating third and for or overview increased the $XX.X per believe significant for compared diluted of to We excludes the for to to $XX.X million. an income, X.X% certain compared more share. is quarter reflective noncash quarter. as underlying This XX% results. increased $XX year our measure the adjusted $XX.X million which compared was as million. Revenue

the $X.XX more per performance per earnings share, underlying which was adjusted of share. believe we operating While is diluted reflective

as for of to comment earnings Let on me it per quickly one the adjusting relates the share. items quarter

well was I During released primarily both on quarter. by valuation prior in benefited benefiting underlying expenses, tax quarter, as student-serving reduced we million, with our reflects adjustment that enrollment acquisition due the details which $XX operations. was Trident in to remarks. EPS stock earnings debt a insurance growth adjusted minute. more improvement operating and offsetting the occupancy-related The associated increased costs employee to quarter. functions, well the foreign positives associated GAAP Partially amount growth supported the versus my versus the allowance provide year student-serving and results performance-based expense, which revenue savings was in events. CTU AIU, will and share in income the Also more a $X.XX at as current this further per travel for quarter bad Back for COVID-XX-related by will expenses, which prior with I these and marketing year the our third incremental were discuss investments compensation of

as Trident to Revenue perspective, CTU underlying reflecting partially Now for pandemic-related student quarter, the debt impacted the quarter. the on an results. to the Increased $X.X income to income. operating to quarter of established prior the often Trident note Also that as by efficiencies $XX continued increased compared to be revenue the factors as year compared was timing prior associated impacting serve associated was and debt student-serving definite interest marketing were $X.X the million than as diligent Year-to-date company processes bad quick our as operating with revenue enrollment growth debt for in percentage $XX expense. well debt. within price year positively quarter, $XX.X expenses income AIU, the quarter million achieved acquisition. increased at on prior Note the and year up accounting of million expenditures negatively quarter. year. expense prior offset bad income to prioritizing intangibles administrative in impacted as $XX was reduced segment From At to higher million slightly million million for across this acquisition. was bad for $X.X initiatives, to various amortization operating purchase in that marketing with was of expense prospective part life support XX.X% a million or CTU expense of expense student the X.X% while A quarter related an were cost bad supported with expenses current by the the Operating savings. was functions,

students to continue financially their We help that to more likely of invest study. they prepare school for resources to are so program complete

expense XXXX Technical based wanted that perceive and we fluctuations, stabilization the to Department with Education both for bad released of what of While current the also we we results. University. on still cohort default Colorado are InterContinental American expect I as pleased the quarterly rates share debt the University year-to-date

reduction basis points are We improvement rates the to a default saw points, in XXXX report XX versus the basis is in year pleased This of respectively, consecutive CDRs. that cohort. of both their and the XX second

Total compared quarter. student enrollment by year to Moving enrollments. supported on as by grew student CTU enrollments to new X.X% growth of prior X.X%, the at

enrollment As at was of by that process. served Todd CTU growth supported levels student by our consistent improved well interest within mentioned, were efficiency prospective enrollment

enrollment to Please as number enrollments contributed quarter periods. growth quick Other, full of for the and the period. to at student fourth quarter campuses. enrollments $X.X respective Looking the the of Corporate the respective academic included comparable million as AIU $X.X year revenue million days each with University XXXX. we as fourth the the arbitration for of campuses for which for growth new the increasing settlement that to CTU associated Total forward, InterContinental with current total on third in includes and year the Operating in for year residual in we full quarter. matter. a see to legal associated student up Trident versus The for to prior enrollments quarter charge enrollments and the the at increase is year said, and XX.X% enrollment the year new full operating in the quarter quarter for with that update the With impact and relatively XXXX, well as the a calendar note for consistent compared expect as prior for and expect A $X.X in the grow The American total well year XX.X% quarter. versus with losses new acquisition organic were quarter. prior losses were closed positive and fourth prior closed year Oregon XXXX, million underlying periods

primarily Excluding Corporate of increased due expenses. to associated campuses, closed operating with losses costs other recognition stock compensation and performance-based

Now on income quarter. for third to from benefit taxes $X.X We taxes. recorded million the income of a

between to of is to utilize the and the allowance now XX% tax the utilizing rate of to credit tax income for foreign Based tax further our impacted release or then of of year any by benefited all this year-to-date valuation in and profitability, carryforward. are effect do foreign increases on To against we XXXX, domestic income taxes the During foreign to with XXXX. and paying the the that first also the release of not tax federal expect be reevaluated federal pay for our tax quarter of tax we we to income $XXX.X estimated our anticipate an beginning portion reserves we further need the supported of carryforward Based we account loss quarter, rate benefit tax on related balance. Without of quarter negatively this be overall full of loss the by XXXX tax due in reserves, current above, a taxable the taxes estimated valuation credit of rate compensation, the expect do stock-based purposes. net federal by Separately, million we The expenses not anticipate tax elaborate, million XXXX XX%. any our assuming to material tax of portion carryforwards effect expectation XX.X%. continued still deductible the credit utilize for expect the while tax XXXX. operating will XXXX. $XX allowance And able this carryforward

flows represents short-term $XX.X balance acquisition, the discussion. cash over partially XX, related settlement cash the cash sheet. with cash, of from ended to cash million offset We referred an current XXXX. compared prior December million were be cash to were million restricted today's the $X.X with long-term university matter, $XXX.X balances which increase will related of share payments and to million year-end of and outflows Oregon to Year-to-date Capital the operations the center cash positive upgrades infrastructure equivalents, to repurchases. Trident as for to payments our remote as remainder the platforms. of the balance for investments, quarter arrangements Moving investments and to learning work and IT enhance of the as to in quarter arbitration support capacity approximately expenditures third Capital data as quarter annual further in the cybersecurity quarter. incentive year $X protection, included well and stability our This expenditures

expenditures made of we approximately of revenues. on the this expect million we our indemnification two University $XX.X final International the XXXX, to completes after That quarter. X.X% completed obligations assets the the obligation to of the the secure to continue capital closing. Also be all of March escrow acquisition year, that with during million, purchase final financial of $X of which full-year note and substantially in the payment million of $X.X seller of remains we Trident For price

Finally, outlook. impact note our outlook Again, date. on assumes fourth as XXXX follows. to material based the COVID-XX results to from quarter Please the no the outlook is experiences that pandemic. an assumption operating Full-year our XXXX

We our to and in share in of our as the adjusted million per million. to Adjusted income previous in $X.XX earnings $XXX to versus to range to be range per in $XXX.X $XXX.X are XXXX. outlook $XXX updating outlook operating is XXXX million diluted $XXX the of $X.XX share million compared million be of to $X.XX

versus the range in to $XX.X And quarter. prior of year to diluted prior our be million on $X.XX expects share $XX.X AIU. expected quarter and $XX.X income of in the is range The growth in versus earnings adjusted company the $X.XX of to The to in outlook. year $X.XX the quarter. fourth CTU based million terms both be fourth enrollment In million quarter at outlook operating adjusted per

approach our allocation. by capital conclude balanced to me commenting Let on

on We a and capital organic are projects shareholders. returning sheet and to inorganic evaluating balance while focused building also our prudently strong

we to acquisition strategies, deploy As programs, at while to including and of liquidity. the will we further inorganic high-quality efficient evaluate resources Ultimately, maintaining will adequate balances, to manner our Please the well With for emphasizing key build the we today most that, our earnings to expectations and lead other cash closing institutions our Todd? about believe organic value. is to to student-serving discussed call factors increased filed or refer over for his and call and that in important goal universities GAAP continue as today's our educational remarks. reconciliations. on assumptions the effective investments shareholder release Todd underlying will I this back outlook non-GAAP turn information as

Todd Nelson

Ashish. again investments ever, Thanks, academic experiences, and than pandemic. year we joining today, operate important for the more the with our on open as the to performance. in we now our priority Thanks to us Well, business. the uncertainty call outcomes for for retention strong and responsibly and experiences us are outcomes learners we're student of allowing adult remain track Student analyst any to will now and continue is our grow academic questions. finish during Education

Operator

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

Alex Paris

guys, this Canyon, We on Laureate for busy and Very just thanks to earnings earnings and Strayer morning. Hi had Perdoceo, today. you tonight. taking Grand education my for raise. congratulate question. beat Adtalem I wanted another day

got bit. little in here a So, we

Todd Nelson

Busy day.

Alex Paris

that? What's

Todd Nelson

I you day say guys. its busy for

Alex Paris

Yes.

a consensus. of So, initiatives. Earnings about revenue per I to were talk and revenues corporate little wanted student but to beat, shy your revenue, you

earnings you Of that. and course, guidance you guidance tapped give don't you give on revenue, on

assuming that about my a Could initiatives. came revenue bit per success on I'm to talk student that you your that, assuming corporate with do little And further versus something has I'm that? into play So, here estimate.

Todd Nelson

the would you per they students you're dynamic with corporate a as EBITDA level is don't retention thought build of corporate revenue as we because associated partnerships, significantly that No, and be. actually budget they they bit the are costs know, of better. that And for Absolutely. The yes our I year, would say, we again, you student. ahead, on, where higher, have is a our the spot Alex. is less generate Their marketing little you

not And October. yes so,

more be Obviously, on But we a for year's that. though simple. think actually into as simply per it's next obviously, of it's bit again student, experience of even go we'll revenue those it a the students. more will company. the the that have suffer overall on importantly, actually better But retention EBITDA it's I you budget, little

of there. And that it Yes. right so yes, bulk is the

Alex Paris

enrollment that any it you the comes then size question. by in corporate annually, these in way either university either aggregate? or example, now And Great. on particular for for a percentage what follow-on just or your Can partnerships, from us of

Todd Nelson

Yes.

that for we have in don't be both year, up feel have was to was CTU able me. it AIU a think, Last What Ashish we'll percent in corporate students, quarter, that particular number better I of percentage But to possibly for and I front that over do XX%. next CTU. that? for for gave

Ashish Ghia

Yes.

think an what as Alex. we of is XXXX, have disclosed typically basis, annual on do December we I it

about to have And We we continue enrollments XX% they come from these of obviously, indicated. our CTU. at partnerships have grow, corporate total as

Alex Paris

that you is I assume that but didn't should number? And lesser AIU a give

Todd Nelson

Yes.

Ashish Ghia

Actually, did that as XXXX. That X.X-ish later AIU lesser mind, CTU. is a that give at bit is program December again But start in than a number. did of AIU and little keep percent, XX, we

are that good progress there, and So we up, ramp too. continue we seeing to

Todd Nelson

and wise we've continue. year, see this for that say hope I'd there, seen that percentage significant we growth And to

Alex Paris

that industry then you both question. now kind through your a Biden your the question, the many How have many CNN Great. focused administrations, yourself? impact then industry I guess my a first What So thoughts years and and on Perdoceo, of positioned given News we're democratic on are election. of given republican. right of that's here's win the picture your about And all on Fox in and different just big Todd, specifically?

Todd Nelson

focused the the an I've House as education? before, we what on a decades since stay and that industry quality or a company this successful to White well always And Certainly outcomes, been And is question. tried what you learned really to of is That's Congress. really to who's existed appropriate have in key Is control several student administration over, in absolutely that's here education but having Yes. is outcomes of to regardless know, that. I've the enhance we've tried do. and focus in what

As listen focus of ours. been over last that's calls our the you to years, a several major

feel ago. so stronger were several from going even we then, continue so years quality focus we're very And on that an that. And we're outcomes we we're to -- and to than

Second strong is, administration whenever there's having, very the if that's other, And believe, is whatever a the an I to is the happen. of do a administration, in being change balance you make than need adjustment because for sheet in do to reason important. is different new little may something ability invest a that a necessary to

balance again, in I stronger sheet of believe our one is know, balance industry. the So as the you sheets

And And very program. that's sheet. again, in quality robust balance typically a addition in important, then outcomes the reason because so to our and to compliance that so have FTC be with comes. again, the where, And you compliance with robust multistate the as programs. tends know, if our agreement, criticism, it the we there to agreements be is where that And and very AG tends a

And four again, in are things so those that been We've the way. focus. major really,

what way I there, feel and like with excited because, a that in provide needed you're meet about the allows again, that. outcomes us administration, is adjust take. to we're -- we if think, these to of administration things, hopefully they to do ability a that I on right need types that direction work to service. positioned better you're whatever we're to may hard think or is. is Trump strength We're, again, I whoever your But tell department a It's whatever to that's very the in Biden focused out second administration there, what

Alex Paris

of And specifics are got Biden, that, on things how were is a couple focus color. originally Great, of too. under gainful version of and within might of saying that be stack that's there prior programs a under have Department be question would your experts up the Education I good that re-ascended CTU employment? follow-up. implemented the at gainful My A things employment. of of been that did some AIU Trump, had that one Obama couple I against implementing then would which

Todd Nelson

Sure. under then, Well, regulatory we programs that. process. But stopped enrolling unfortunately, went the change know, we was a would in Obama were that that front And back in the felt test, information don't the there through way, right that again, you students meet administration, in it if of I any me. as obviously, there. We any first first have when not, then

So that thing. we've reenrolling we not key in program And that. not was a have passed very felt any started that would

years past. are several Now

would bode So that on very again, you that programs need not to to carefully. watch decision a start part under we our key those But was that felt not well that.

Now that, Trump having the said administration, you just re-ascend. it. didn't they They didn't they know, redid as they

in a under that But a different you're obviously, And university the falls place welcome you that's we until every that. with prior it feel, should to only we'll so But faced return was of that we'll to there view would base that is on our address again, what change I there And maybe the it's with certainly, certainly in will same situation. guess, what is, be see. happening in other. we're there, be go compliance that. can And we'll the if be other on doing and that, If try administration that. than whatever,

Alex Paris

Yes, Excellent. four you and like example. administration I never back. as changed years eliminated a were ago, preparing recall, for you culinary, programs And for Hillary you

You or never anything. reinstituted these programs

good presumably, as you're on a with compliance go-forward well. in basis So

Todd Nelson

for on I to are the earlier. hope political we focused benefiting any saying maybe But and on -- some really investing why But you focusing or we good back Alex, Always, we'll programs And see. that, what By absolutely. administration would provide be education, would what quality wait anyway student. like that. would have to students obviously, in do that's was those something the outcomes, again, again, versus student services, is agenda hope good

Alex Paris

get And the back in I'll Thank queue. you, both.

Todd Nelson

Thank you.

Operator

from Your go ahead. next come Moore from CJS Dan question Securities. Please

Unidentified Analyst

And Good could COVID the the evening. student -- any stage Dan. think I I sense guess out I to It's Brendan from longer-term enrollment. at crystal just your you ask to maybe CJS your on impact what and overall this guess be regarding ball break try want effects? for about on

Todd Nelson

very the a going it's Really, Yes. across completely up control. it actually good lot with country, of again think under the question I numbers a see of cases because about unknown when we'll certainly

one So, very saddened environment. these and able provide been -- is the produces of for us encouraging we're things an for that that again, encouraged having is that, quality that type it's by happened. what's has good we're by very said very, to outcomes what this But really education students of in

was had quality know, you of us to of certainly, universities, lot online good think classroom where grandchildren of in online was environment or offer tried high very they children those education, produced It experience delivery, quality. an a in not the or outcomes and where with tried K-XX platform they provide either we've they the I good education. just into transition not some in quality to that online. much the a As providing did what usually a it necessary to challenges And one has

out for success help see from had there there think far very We've with can protect of looking ability And do these students. to our we've that years education we've had as experience as as I helpful. mentioned, has numbers, and really result, that's our student themselves. to interest also a as consistent need years we're students. meeting as so been potential had And you a because for really They're enrollment we've quality

or go -- to degree things, most a a either are job do students which of be to get in mode. better our things those a promotion adult of that in when that or completion are type reason, back we is a position a students, them normal, better they'll who So,

our from we've but of again, you also reflection believe there's a educating reflection providing we enrollment them nice do And that's by a numbers I see of it's education. that demand these so with a students, quality job

trying maybe potentially where you many probably little bit meet, same are challenges retention making think to a at I students as work the in a the ends impact facing your children they're of home. others as is bad in bit far at that of feel to watching some do COVID be because, again, home, debt having still little while and

things so And plan. those come into

of some the improve help area So we class to some in we call if can talking and be more our focus. that's students. graduate, of to that to doing help we're time and be successful part earlier any and And enhance things the spent stay them really in our the retention helpful about on

point-of-view. so seen so ability potential negative good help negative only potential your And -- probably really again, a retention is results going or But I think impact we've would or the to any the the students more along, across I say those forward again, from board.

Unidentified Analyst

call. describe topic then Yes. because talked you and could have And some it QX, you would meaningfully mean have obviously. any that if retention? student in retention, elevated the -- of had earlier guys And in I spending costs, been just pandemic? have you and specifically on on How the to increased that to about speak that of you may meaningful

Todd Nelson

and But obviously, something saw in I home. But that's I'll investment any that. some let employees efforts, seamless, those far would costs and in pretty with are where to technology our be, relatively ongoing our seamless, as have tools Ashish the comment organization. really, as cost. work efforts the associated were have transition. been moderate some retention ability retention correct should our necessary that say, as There But are far investment to that from and as we with direct

for What those out some budgeted regardless. are that seeing is just we've stop because some So to those tweaking having different. a of their of we're reasons little

student that investment takes that was working to address not. the associated sometimes from if to on things. had workforce most ability anything the in costs advisement, add of you our I Ashish, our -- or And home. really, But of getting don't so know, more type cost And those

Ashish Ghia

think categories, spot I initiative. on. No, two There from retention it's se, per alluded ongoing Todd were and work that's home, an as the to

continue in tools. We retention analytics data to invest

pandemic. So a related obviously basis anything to students. that directly something support it's our not that's a we But index regular on to to

Unidentified Analyst

-- of what what's view you obviously, need online do Or that? I to the portion you locations also can transition of online. longer campus well guys topic that It then And on your and you is term, in there Okay. any this consolidate see and And you for they're opportunity those? transition space? what with do see the XXX% essentially kind guess on terms -- Do pretty to.

Todd Nelson

really Yes. Actually, a good question.

Let second. me about for just a maybe space talk

employees opportunity you there's is think it our been productivity. saving there. think, are real technology, space campuses us. comes But we There we a because have too we've savings managers. that the also from see is in a consolidation costs But upgraded a there's over those opportunity going of is actually discussing -- as our cost prefer continue Again, only our less, that many would of what some there to perspective, is some bit that we've estate online, work to for we time, as of mean down. see four are some where we a And I do you from aggressive I we employees where -- have do begin percentage don't I to little will seen large get since to want cost see found know, with. we with home. your to improvement their as for real we just We've potential

as with Now And have we continue to ground, a on some that we've and that. started back at had as programs far go we'll we students success do to few offer that. slowly go, have

be Some really We just plans there. programs are better didn't have offered any on-ground additional to campuses. opening

there's any but forward, have hasn't believe, wouldn't, way. there, going really plans. saying direction if opportunity strategic we our altered it's that or just we not I that So outlook do our didn't some

that altered And really so at our it there all. hasn't projections

Unidentified Analyst

Okay, great. appreciate you, I Thank it.

Todd Nelson

you. Thank

Operator

go for Greg ahead, further time Sidoti. Pendy We question. one from Please have

Greg Pendy

Yes.

were there bad segment there via I'm had can up think are any talk AIU easy on now a compare some about know difficult bit difficult what -- debt you within that I a you're number and synergies the swings, or scaling you little I sorry, Trident? seeing students not. of But Just, just you're an cost the

Todd Nelson

a Actually, Greg. great Yes, question.

that. very In we very that a one things thought. real we a student. about the lot exciting we that of are partner a have especially is months than experienced. of be their even Their last to Trident found are of haven't several fact, But military discussion had -- and type found very, programs We employees, that's conducive that has happened area the corporate the to in better what over

be so think some And will forward, consolidation. there we going

you I I because that need think, talent as any reduce technology I their a at employees And we'd -- meaningful military. way, as those boost seen know we in to some our necessarily, corporate see again, probably partnerships some most that serve have to we savings would there. really of will And is, would obviously, ability our add employees, more. obviously, our of I departments, there. as don't from utilize ability say, time, think to but some second our the But more that point-of-view, in both it our synergy corporate we I is we will look as well think fewer from effectively just the

Greg Pendy

thanks lot. a Great,

Todd Nelson

Greg. you, Thank

Operator

Thank would you. Nelson This to concludes back for remarks. Mr. over conference turn our now question-and-answer session. closing to I like the any

Todd Nelson

quarter. you and you very again We of for look talking time forward the appreciate you you joining us. at taking fourth Thank end much. the to Well, with thank

Ashish Ghia

Thank you.

Operator

you today. does conference participating. for That Thank for conclude our

now disconnect. may You

Perdoceo Education (PRDO) 7 Nov 202020 Q3 Earnings call transcript