APEI - Earnings call transcript Q4 2019 | American Public Education, Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to APEI's Fourth Quarter 2019 Conference Call. [Operator Instructions].

I would now like to hand the conference over to your speaker today, Chris Symanoskie, Vice President of Investor Relations. Thank you. Please go ahead, sir.

Christopher Symanoskie

operator. you, Thank welcome and and full Public discussion Education's XXXX. Good results to for financial operating and the of evening, American fourth year quarter Materials X-K included as in exhibit to are section conference report our the an that on SEC current and today. Form of are Events with Presentations available and website our accompany today's furnished the call earlier

not materials its in that conference call expectations, are presentation statements subsidiaries accompanying or Education made current this facts forward-looking regarding note be Public Please the American on may statements historical that and based assumptions, industry. differ actual to estimates and projections future risks about subject cause American results Public or materially Education from These and statements and the events could such forward-looking uncertainties statements. that to are

words estimate, seek, by and anticipate, Forward-looking should, will be such expect, may, statements could, would. identified believe, intend, as can

becomes publicly or to forward-looking law, reason obligation The for in update if referred statements registration the expected and in are and plan including and the required of could most any These even planned occur marketing with those the initiatives, other company risk investments available no the Form strategic that expected limitation, and undertakes the and Risk with various and company's factors, and these result statements enrollments, those company's information filings. without SEC company's current as expressed respect factors the SEC by results forward-looking in regarding earnings materially from on forward-looking a unless revenues, to recent statements events future. expenses section partnerships, campaign. differ plans filed statements XX-K implied growth, include, and the new described other future expected including by Actual the elsewhere Factors recent or new company's any report annual

pleasure President my Selden, our it's Angela Chief to our Vice Financial and Executive Executive Officer; Rick and introduce Sunderland, evening, Officer. Chief This

over the this Angie? Angela like to to Selden. time, I'd turn at call Now,

Angela Selden

report will strategy, to and in results on you pleased of of creation growth ambitions I'm Hondros. share with our everyone. elements evening, Good key which and quarter accelerate our APUS value Chris. you, Thank both enrollment fourth new our

in year Student with fourth an net the up a cash course representing in by by other student increase total milestone. offset decline enrollment are the prior driven in Veterans smallest students new compared The year-over-year new the a sources in X% by increase of stabilization First, quarter X% new registrations utilizing of X% utilizing of the net period, Benefits. students as increase course an course was net decline quarter rate notably, at was Aid, X% however APUS, utilizing XXXX, Federal increase and since registrations registrations by and students partially XXXX. fourth This

flat demand on TA, in the quarter, approximately Net continues Assistance, which course of students year-over-year. limitations the Defense Tuition for TA Navy, utilizing registrations or each Department fourth by of except course to There branch were was courses strong impose new by approvals. the military for

our highly and at our operational net communities, increase recent helped to with during effectiveness along We the combination focus APUS. in on the improved quarter of fourth rates, both other improvements registrations veteran, believe persistence the and learner military, course persistent overall

year-over-year higher by delighted strategy. are increase total course we new execution seek the creation of and registrations, value in We through net ultimately our growth the

recovery indicators. the at key reported in plan improvements student since are This student increase is enrollment of yielded new year Hondros XX% share growth quarter the prior also XXXX new has as to We execution has the first in second quarter of Hondros compared performance XXXX. several in the enrollment pleased of of period. first with The that Hondros enrollment

that growth both contributing in future new well XXXX, year-over-year, in CRM a enrollment and was part graduating enrollment Hondros large support a retention reengineered X% to in by While declined increases recently class believes and will as QX of at Hondros improved enrollment the as rates. the total processes student implementation decline. conversion

In for to Indianapolis new the in the segment a XXXX, loss Hondros million of improved operating $X.X of $XXX,XXX the sequentially third the compared fourth in the a our including campus, start-up loss of as costs XXXX. quarter of loss quarter with

target a the losses Hondros start-up the profitability includes Hondros this fourth campus, for the management new costs This of result for Indianapolis operating XXXX. reach quarter in quarter of which As and narrow the is second improved of expects overall classes for to to anticipates team performance, segment to XXXX. year profitability expected open those

Hondros agency, Hondros’ February XXXX. affirm through acted that the to it ABHES, recently informed accrediting institution’s accreditation

addition, recently Defense's of to Understanding, program. an TA Department participate in or MOU, into Tuition the entered Hondros In Memorandum or Assistance of

Although Hondros challenges, what face we continues of are appears Hondros. to by the start at a be to encouraged turnaround

organic growth completed our study core during Hondros belief growth validating my revealed Hondros. discussed were XXXX our As focus enrollment maximizing a investments at of and creation on value a drive that QX both learner's APUS Several and can return operations and call, earnings opportunities APEI's we APUS sustained on further competencies. both educational

will strategy intended As drive a a growth result, bold we to enrollment new recognition. brand are implement formulating and and accelerate

the expand being and modernization easily practices to APUS The interested more voice prospects, quickly story share of targeted services key refining way a purpose-driven leading increase These added learner the by maximizing our admissions learner includes elements learner and outcomes to under on markedly retention program also It involves and elevate campaign refining tailored our increasing awareness of and students help student and marketing interested improve to prospects to creation our our and of initiatives experience educational consideration investment. the variances. polishing processes better rates. at referral brand strategy return reducing supported technology to executional value transformation aimed messaging become to in new are by

processes. revenue while increase improve worked or rates will recent less support to spend to elevating of gives promotion, The these having XXXX. share improved XX% creative $XX of around with years, on APUS' value $XX marketing full at million strategy. and selling with learner million spent Now, finer strategy points early our have persistence and technology and we year to onboarding the in creation me new our improvements, our compared approximately confidence combined results I marketing APUS, as some In XXXX capabilities also by

program adopted online DXL's Over online. with proprietary, successfully the fully early last only Brightspace, years, the aging aims our new through few quarter methodology, our APUS X APUS CRM with year, and rollout the planned relied order went leveraging to months. stable that represents The LMS increase important management now on beginning rollout experience X the campus combined live a referrals. university This, will of after technology its at enrollment, to or but last high-quality to satisfaction, has continue campus, our in cloud-based, next-generation second we improve in system, a in deliver experience learning new this XXXX. newly learner steps week agile modernization By of platform

are partners and micro that personalized learners LMS, by tied capability are The their as working Today's that flexible corporate alike. programs increasingly outcomes. more offerings and new to increasingly solutions sought such and vastly employers workforce innovative, credentials employment demanding competency-based our to are develop professionals expands

quarter effective strength military At the net at growth our unyielding of of became a to to Master's we or our commitment course extending since duty the as unique registrations of no textbook grant core military a remains in January at the continued of have XXXX, communities, founding. APUS increase active XXXX. decision we by built learners out-of-pocket military strategy students by result which and level, first with anticipate an number recent our military In tuition the costs minimal our to X,

Our build and on expand veteran in our goal at to AMU. enrollment affiliated, is strength the military to military, communities

history we to will military, that grow and We the have of continue honor a serving and commitment. strong

summary, enrollment funds competitive innovation learning but to larger, is Unlocking health growth leading sustainable with that invest at to only over and provides more to experience APUS, In to future excellent and increases greater provide growth organically in operating our improving financial a efficiency, long-term term. with priority critical top driving and not the advantage and an our partners learners long the create available believe our step distinction. APUS vibrant to serve ability learner next we is enrollment community, it the

of support Hondros for holistic marketing, improving operational applicant strategy performance creation digital their the the and value throughout results. include reputation performance student in modernizing SEO elements all and marketing providing for restore representative students brand key while the Hondros journey, to The and studies, attainment improving admission continuing with

on educational APEI's business need skills learners core can my an an emphasis to on the for learner's to with platform each where It adult national top they return obtain the learning investment. backgrounds of need addressing all the grow maximize is priority

of culture implementing execution mission. passion this growth new success a at requires for strategy internal strong our and Our

to team We to our enhancing bench indicators. several an transformation strength the well of leadership help lead me are as key improve enterprise performance in underway executive as

I before, As is higher APEI secret. education's have kept said best today

We day, an organization education APUS nation's few. A propels we Education value lead important APEI X% U.S. student for what of eliminating the Maximizing hopefully, part return among reducing University learners. belief never meaning educational all, by accessible of debt efforts affordability. our time investment be delivering should a is us terms and, the of in be It the on the that colleges are earnings XXXX is Center to future top as puts that driven not net present more Georgetown reserve one been in to forward. value, study in to learner's a and has for by the of work

on educational investment. to build return I for APEI best intend learner's learner-centric and a universities maximize the

without more. of the fulfill next and our intention ensure We growth sustained to burden. that institutions can their APEI's continuing proposition careers financial chapter value to are It more enrollment absolutely that the so their start committed learners a dreams no secret our to of is across is momentum learners

online overview, like coronavirus. are matter turning financial of categories operations of the and our the I operations Hondros. our Before APUS; There our to APEI novel to on-ground X considerations: and address at at would

preparedness X continuity and home. APEI work effectively and faculty and APUS First, from we which to activated all have of employees our plan, testing is business stage confirming for

We each Currently, business professional be and will on personal collecting travel not plans. information also from disruption. do any anticipate employee significant we

stands light information. in team any revise and to the review plan ready management of Our new

to have to online current made choice they purpose coursework, enrollments low-cost in advance the example for capacity on-ground precautions due with courses APUS their an no alternative certainly an And is and experience to a pathway their skills, transmission flexible while and their demand the APU an should there stay the who students see prevent to have transfer through their need affordable, excellent As coronavirus believe to track impact. option wanting our coursework. increase stay-at-home AMU, for from higher for all online to We taking learning informed those we that students, virus. support those better for of is advance infectious that of APUS on we for

training to on-ground hygienic we employees and in our precautionary education students protect confident from for health of are at our Second, that students place environment Hondros, practices in exposure. brings and awareness the care our already measures

We at are self-testing exploring additional measures, including Hondros. symptoms, voluntary for

severity continuity provided plans, so There are emergency are the operations. the about view our estimated impact There unknowns the up-to-date in on the future always we virus and have nation's most response. business of risks APEI's on many our of coronavirus executing

the call over that, Rick CFO, to Sunderland. Now turn will with our I

Richard Sunderland

million evening. $XX.X Good period. $XX.X $X.X XXXX, $X.X segment million. in decreased revenue $X.X the year compared decreased revenue to decreased million X.X% HCN million X Thank consolidated XX.X% to segment $XX.X million million. Education's or December months or revenue XX, APEI you, to prior the Angie. X% ended to for American Public

$XX.X the in as total fourth to segment. In APEI million driven by expenses year-over-year period technology-related increased to primarily prior quarter, of and advertising cost higher compared by the expenditures year our X.X%

expenses was and compensation both APEI our in the revenue, costs costs in a in instructional segments expenses our prior XX.X% million driven employee by costs materials $X.X instructional decrease and to HCN compared The in decrease and primarily $XX approximately year HCN instructional as of costs in million and increased services segment. a decrease to and, services period. to in XX.X% the Consolidated decreased percentage

the approximately primarily in expenses APEI by and employee million period. $XX in Selling promotional selling million segments XX.X% our and increased $X year in segment. increase expenses of in of increase costs advertising in an prior in and compared revenue, APEI increased and as was increase HCN costs to promotional and, a compensation driven an to The XX.X% percentage revenue our to

related general General bad in a expense costs $X.X to partially was our in to an professional employee as in and our from and and period. $XX.X and, million revenue, decreases in announced in fees related to increased expenses primarily in segment administrative IT administrative decrease modernization the increase percentage by in and million our APEI a in APEI expenses increased The segment, compensation project to HCN previously of increase offset prior approximately year XX.X% our APEI segments. debt XX.X%

debt of or decreased million and, quarter million the Consolidated or of prior in to XXXX million expenses prior $X.X revenue X.X% of in expense of Depreciation approximately X.X% to was X.X% percentage revenue million X.X% bad period. fourth decreased $X.X to $X.X revenue, revenue amortization as the in $X.X year period. of the and a compared from year

income due in quarter year XXXX of to advertising APEI segment, period. $X our decline The compared million the of $XX.X decrease segment. in is fourth HCN technology-related operating $X.X higher the the and for to prior operating was year-over-year expenditures combined income in with our income million income in operating primarily Operating in million

$X.X Consolidated to the period. the income diluted per per million prior diluted net compared year net for or income of quarter or share share million $X.X $X.XX $X.XX was in

APEI For December noncash the costs ended the million a president income compensation the XX employee a goodwill to following $X.X quarter basis: investment replacements the and APEI and $X.X $X.X In in in be the XXXX, million will XX, of professional $XX.X acquisition segments; $X.X in our XXXX, APEI and technology our to XXXX. reduced force for HCN impairment approximately fees include resulting months the in prior of from million year in in to our APUS costs in In million is the segment. potential information expenses in to on segment evaluation period. pretax million APEI related in that first our cost program of payable evaluation in information reduction segment HCN compared in income by voluntary and declined advertising in APEI and upgrades operating $X.X technology segment; our the $X.X costs operating our a with pretax segment; in increase of of retirement; associated million systems upon benefits post-employment million XXXX, our a expenses

$XX cash as to Approximately under XXXX. common XX, million $XX and December $XXX.X cash share million In XX, million to $XXX.X of cash million were million as of December equivalents of compared buy at approximately XXXX, approximately Total remains repurchase stock. our was shares back XXXX. X.X XXXX, XX, APEI used of authorization December

Cash the million with our compared the in the the million year to $X.X $XX.X expenditures HCN million segment. compared in operations $X.X quarter prior approximately $XX.X to flow decreased for year from the to XX.X% prior for of XXXX all year, fourth period. were to decrease attributable million Capital

X, Page outlook. XXXX quarter to Turning first

and increased expected XXXX first enrollment X% first year-over-year total X% positive, to new Our the of At Hondros, At expected are compared in APUS, net quarter outlook the the of student first quarter increase by for year-over-year. XX% registrations registrations XXXX. are slightly net quarter approximately new as and is for course be the quarter course total to enrollment to follows: decreased

quarter The to the minus expect to $X.XX between range quarter change first XXXX. the share revenue plus expects in per of first diluted X% of be the company XXXX, $X.XX the be earnings we to in consolidated X%. In and in of

earnings outlook APUS. $X.XX consolidated view consolidated quarter. in occur increase share Number estimate approximately that year-over-year growth investments this outlook million expense impacted an further per We will we following advertising anticipated generally $X.X currently may was in share. the registrations quarter earnings or share our during by the as the important initiatives. one, and includes impact per to first growth which that for drive at increase The by APEI's the share positively repurchases per tuition first recent items, quarter the

associated Number two, be with modernization project per our we $X.X expect to share. technology or $X.XX costs approximately million

related cost we last we XXXX, project year $X XX% of technology mentioned quarter, As approximately and modernization to million full million is anticipate between of implementation. to the be which $X the in

earnings share annual benefit in is and compensation increases for head roles and higher in increases such to IT $X.XX three, costs to as by outreach, compensation critical and impact first including quarter. Number per the related estimated count, benefit military cost and

cost Hondros other administrative per the increase first operating in quarter $X.XX expected our services adversely share. loss student impact of Lastly, at and may earnings by and functions approximately

priority earlier, through grow to her goals which As our a APEI's achieve validated core creation mentioned its the business. top Angie Angie to with intend described value earlier, is developed We strategy and study. leadership third-party was by

for military graduate campaign, and a marketing degree the out-of-pocket time, no new of a launch affordability same soon and may ROI undergraduate of At message we obtain the with students costs. to will We our seek increase who learners. number elevating

infrastructure The importantly, mission. Enrollment the and modernization our is such growth flexibility and to enables most learning to to strategic advantage operational IT as competitive value improve our efficiency, and, goals students underway. enhance fulfillment our the financial increase many experience build of us accomplish society of

we audience. Now questions from like questions. would Operator, please to open for the the line take

Operator

[Operator Instructions].

Your of comes with line BMO Silber Jeff Capital. the question from first

Jeffrey Silber

increase on providing focus potential for terms I'm your away. least the Have some this be an going Thank in on campaign you that's something of right home? learning to impact And coronavirus also getting sorry business. you been in the at everything going about on? at of the in talk to to your of any benefits you -- guidance inquiries like including marketing us are because

Angela Selden

so days. Thanks early for Jeff, It's much, the question.

options, see a which deliver. an full than we're to think as very to a the students plan, what different learning continuity I experience online institutional we -- the is learning spending called institutions their that starting evaluate experience student really is

modality, from those on-ground students interest APEI opportunity will of to we institutions transferring the as to enrollment attention family. close APUS join growth pay result have the and online our welcome their and students We to a

Jeffrey Silber

technological either a there's to of terms or again, perspective perspective from capacity, that inflow? handle no a in faculty issue from And

Richard Sunderland

So Jeff, it's Rick.

issues. no So capacity

We students serving. have we're serving delivering more a currently Few our we years services. educational than highly variable were for model many ago,

our new systems, term. students the opportunity a people deliver should constructed near that at currently scale, in X,XXX in can month, our to enroll itself. to do We more feel So and present dramatic including processes than scale and we much our the increases are we like close

Jeffrey Silber

Okay. That's helpful.

You it you what was us Can remind and mentioned increase. schools the what affected? that tuition

Richard Sunderland

So Jeff, it's Rick.

to only And TA tuition was January we is per a increase military we So, their the for actually who cost. military students paying the book was students. the made is which the per students, but increase graduate those increase. the We then previously undergraduate military undergraduate out-of-pocket at $XXX applied to the X. to that students increase to paid TA, X% lowering effective reimbursement the did applied such graduate commensurate the grant credit increase, hour, cost rent, which level, It small to to hour saw those the it And increased credit TA prior all no was had prior a have what in students graduate graduate were a grant now extended that TA $XXX. to level, undergraduates

military And may attend undergraduate obtain AMU and now costs. any so, and both without graduate out-of-pocket at paying a degree APU,

we extension as gave military military of and tuition grant, our We freedom the populations, call grant. targeted. we the and our seeing grants upticks some registrations increase are in was of result the that So, that a to back graduate

the in I at out this market point. think that's

Jeffrey Silber

increase at ordinary? Hondros of out And the Great. tuition nothing no right. or All

Angela Selden

No, there wasn't.

Operator

First Greendale with Your next line the from of question Analysis. Corey comes

Corey Greendale

results. enrollment the on Congratulations

In the things -- what nationwide marketing The plan, you of creation about kind terms Are or a the [indiscernible] of on detail on? mass talking you kinds you focused more couple plan? marketing give are of value of questions. can

Angela Selden

plan We of couple look A as brand Selden. share marketing building Angie the well both spending. of I it's things across you. that can advertising at as allocation Corey, with

we institution about on spend. campaign of I enrollments the which that their on in advertising we might investment building thirds other campaign, So, to draw to and their the for summer will third QX focused think to the over by the focused articulating coronavirus back course of their have home credit the students potential through two be a really be considering In students these prospective brand aligned transfer with term. be a of the those opportunity courses side particular, will in increasing opportunity by

to that believe summer do timely will we manner in opportunity the spending ad that the a period. So, very attract those with over aligned students be

Corey Greendale

think and I And economic. been been cost good acquiring I for been students, how value and the philosophically, guess to challenge the guess, a I of what Public American and gets has relatively part too high has low go always just can the always before proposition of just far cost that that cost [indiscernible] DXL students be makes that you -- and you does to gives that -- how themselves? kind of you benefit things, get much are you make other projecting of somewhat retention the think how the seeing question then confidence you from this sense, is today equation much sense. And or get data you're it if sort going the ahead

Angela Selden

It does make sense.

really also the on in institution. is and on operational but across things overall growth, we've the value improving enrollment our of in creation operations keyed not a underlying focus One the that effectiveness strategy only

So, we're as an both able growth as effectiveness affordable it's operational doing make in on our order to manner. to intention this focus in sure be to well

Corey Greendale

two least a have expect ineligible benefit it's in then you quickly more. from There's well, been VA recently I that too maybe potentially Do I'll been hop any at do And and I'll benefits. number Okay. ask that? see that, made from but one for back assume other anything you -- news institutions -- more, of to

Richard Sunderland

think I that I days mean out, two what ago? tell, to came it's early too just Corey. announcement

Corey Greendale

thinking much more money of just Angie, capital, of innovation for the had sorry, about share as last decent the you're of and on growth innovation, invest signal question is think I'm Yes. to in part program and of a that? are -- year. you virtuous of saying, benefit Rick. of you've going or the the shouldn't cycle the use is is better kind The we Does that forward past repurchase you repurchases that how kind expect

Richard Sunderland

value So, we is good this firmly believe are evaluate thing that, one we shares that our price. a right? Corey, continually at Well,

but looking at so, return advertising, versus makes for investing evaluation in And buy course internally us. shares, technology the to it back for investment that sense that's us of an on ongoing or

I side. marketing good the things see we happening think on

that will in future activities, we share share growth from increases a believe, growth And indicate generate away repurchases so, our into Revenue might value. shift revenue activities.

you sort answer, for the manner. So, of solve in but same a different

Operator

Instructions]. [Operator

Your next Alex of Barrington the from question comes Paris line Research. with

Chris Howe

sustain is growth how quarter Can the This Chris more Alex you sitting the the that you're with Hondros? outlook in in your enrollment you're 'XX. seeing enrollment segment? first for with talk potential to 'XX. there quarter in trend reaching with Starting new regard mentioned the Paris. it and that of saw about profitability Howe the you Hondros, of mentioned What's on what second the fourth addition campuses in time seeing the you since you of new And balancing the you profitability,

Angela Selden

on I'll thanks to Rick the comment I'll the Chris, then for first second. one, the and answer ask questions.

I admissions journey would point of are step And at what and a enthusiastic we students the rates students. and attracting, their supporting process as evaluation of the a educational enrolling, in we as whole improved have our conversion with about comprehensive result at describe Hondros. that, each systematic So, very through of

the We our with program are inside rates improving retention students.

question. their to the need step processes. best their that answer testing then, from journey really students graduation of beginning ensure And you in of systematic second so, process to through each our outcome we're and was that the Rick, for evaluation it the creating a And comprehensive very

Richard Sunderland

Yes.

you second versus So do balancing you I'm just question, about Chris, profitability to know mind, wanted repeating, opening... sorry, the

Chris Howe

within Yes, Hondros. profitability investments with for different growth

Richard Sunderland

Yes.

terms point, the it generate We an the investment that nice open So look supply-demand operation, and a point capital there. campus places is losses. we there's for the should low investment. open ability periods new have campus to the your generate to early of to growth new actual good a during of where enrollment does in And very being imbalance,

flow today the our I realizing to up is open by opening path year growth the a and growth need generate make with sustaining see if existing enrollment to campus by Chris, at right? new but balance not would the profits associated couple campuses, those a fact, the where investment versus ago, fill to growth years can year, meaning kind we to you and in location, that say with of were cash hopefully just campus the by grow and would growth or campuses us trend, where the campus pretty up get a filling the which without so specific in that location they opening just and a in by enrollment city of a that by ago profits a we does it the new two losses, We plan business. to and placing operations it just right ahead that pretty just to was breakeven. nice in generate quickly earning current to flow enrollment incurring incremental of then cash look adding And like

Angela Selden

add PN that it where is suggested creation areas program I are and that one professionals, study as offer for which program today thing, the program RN If relates is forecast all in the nearly to could our what the Hondros, national largest ADN value the gap that XXXX. forecasted the health care ADN our professions has students become in the in year care we health RN shortages or of the

PN the with Rick feel into described ADN a markets so program and those supply-demand is And believe very that those and we consequently, the place product that at offer time. can that that imbalance, right that right great we markets really right confident the finding have we

Richard Sunderland

markets, of But in currently the we that even in serve in #X terms we're the of markets where X graduating X we're, think, I PN.

those specific of not the those in need is speaks met, job in openings markets, look #X number you the If that... at even for markets, which being as

Angela Selden

[Indiscernible] XX%.

Richard Sunderland

if to and loudly speaks And the smart about that similar new hopefully, smart, we place we opportunities be we're the where those to there's campuses. we'll It campuses, existing Yes. plan fact in in see markets. results

Chris Howe

have market? for bit That's as the what strategy, words, within you're to in broad measure at as creative, I of But reaching, far break the you're this strategy different this proactive this all some you little look you more moving the can you of thinking moving and outside reactive And through other value you question. move the this driven versus is the that then it. look an open-ended In or as as a forward, as seeing business helpful. when the say through of ways kind you And business? just look very creation by being more excitement we apart is what it

Angela Selden

days we're I'll I'll do my Since tell our how question. so early we've at the you of best informed that standing far. the to answer thinking implementation,

intention effective the our to way understand and as practices others, operating benchmark well. to did how we create perform that First, where inside we And better competitors ourselves indirect improve. to opportunity the to processes is competitors, benchmarking have most And company. the and direct both to efficient those the is understand

we courses in stand student to they of look or they and to terms and expectations students, we can meet need in that environment come the us. do have our in of what what when with expect outside to when Second, well those attend prospective decide understand to as experience to the we shoes students beat

new external experiences as can need experience about And actually to student evaluate rely our ways of innovation the learners. to so as well have the think different for we our that on we both transform heritage they and that

Operator

line Pendy the of from comes Greg question Sidoti. with next Your

Gregory Pendy

I pushed for said February have with details, Hondros where guess, share out affirmed I -- you any earlier, have been Hondros rolled been, can maybe you those what current you on while was kind process I you out NCLEX some think the trending they rates you and enrollment is? a remind in pass of and requirements, kind think I with then up? back, XXXX. I us think additional us, affirmed And about mean, changes had the to also, then the back. of Can accreditation

So changed in kind things process? the of have how enrollment

Richard Sunderland

Rick. So Greg, it's

high. the schools improve high, always of OBN they've X long ADN the be, that's where sort So perhaps right? It's want program think, of others place scores not it provisional and a sought We And for, the need been not Ohio but years, shelf, In now Nursing time. They're been outperform NCLEX we've we very scores. very a of to for you course, are matter. other matter, an on with in those break accreditation top program, PN Board on NCLEX the X. that to in have scores, It's status been area. down. on I to probation We've our

being So we're we don't working immediate risk. those an see said, That necessarily that scores. to as hard improve business

ability to who the at launched we not and college or looking direct program they're to for a health a a called level, the are have They've bring care in demonstrated entry students who in We've succeed in become where field. related nurse. their trajectory something the students degree ADN life change

really late that I We to be to and in the of launched, it's scores XXXX, that going that's think program so a And driver think, now NCLEX in traction. get beginning ADN improved program.

of made a systems. when micro Last our that's year, At hours better students of did we've probably the going changes think, of prospective terms In of extended we facing apply in very -- programs, we HESI meet to X We've improve conversion rates. I being efficiently something learning teams to about Sales more in prospects about terms X. point. we've more our test. sort our in level, other needs terms admissions to the how PN of they're track the interested and talked process, implemented not force, of implemented student some we the

how I create prospects, we success. of and So it's then would frictionless their in we a students them process holistic support how extended the to evening identify a hours. view say we enroll

script I because going lead enrollment were XX% earlier. still We we school as in an in those know, seeing the the being new expect, the smaller right? a from in and cohorts at the outcomes the is XX%, believe, first of now We're of there have that seeing enrollment quarter. in we students, right? so has these earning exhaustive will then future. graduation actually a X news of good you And large year-over-year I growth, that, the But growth all enrollment, is new is up to, to, think indicator, examination and student was gone that, improvements processes. minus leading think XXXX, lead we to referenced the we're And course, through was And overall

Angela Selden

that one standing students and the benefit is in is really students prevented to Hondros in being one that, And our shoes remove made is of the barriers add modernizing and understanding able well at many underway and key improvements If areas swiftly of that XXXX early to experience how of sure with being prospective students historically, the could our the focus the and again, applicant student. activities of also I our enroll from key journey, in our they process the we making the brand. easily of the have part that

Operator

Instructions]. [Operator

BMO question next Capital. comes Silber line with Jeff from Your of the

Jeffrey Silber

tax for using questions. first couple what also and quick rate expecting numbers as should for year expenditures and the a the What for the Just be you're well? quarter we for the capital of year,

Richard Sunderland

Right.

what I give don't need think, We for terms the you your for north quarter. to you've down. CapEx, guided CapEx in the to. come quarter. little in would of were beyond we we So I 'XX. be modeling, XX% first But guidance our something of a do or seen high And around Jeff, had XX% previously

getting to we're place see point this think I probably going you're to at where leveling. a

would We expenditures. history recent be reasonable the of capital XXXX. a think indicator headed have we're I just where So in minimum

headed. landscape. to indicator moving recently cloud, probably good we're are We think that which where alters it's where of the we've capital But been, I a

Jeffrey Silber

helpful. That's Okay.

count more that? to one embedded or Let EPS, in range for $X.XX guidance is count me share of sneak what in. $X.XX The share

Richard Sunderland

I'm going get to Roughly Jeff. million, have back you. to $XX.X to

Operator

turn back the Mr. questions. statements. call no further time, over for will this are to closing Symanoskie At I there

Christopher Symanoskie

all interest you, American for you Have Operator. We for call conclude to in continued a for Thank listening Public will thank evening. and That today. good wish your Education. our

Operator

concludes this and today's gentlemen, for Ladies conference you call. participating. Thank

You disconnect. may now

American Public Education (APEI) 10 Mar 202019 Q4 Earnings call transcript