LOPE - Earnings call transcript Q3 2020 | Grand Canyon Education, Inc.

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Third Quarter 2020 Grand Canyon Education Incorporated Earnings Conference Call. At this time, all participants' lines are in a listen-only mode. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Chief Financial Officer, Dan Bachus. Please go ahead, sir.

Dan Bachus

call Chairman today's Mueller. CEO, on me is and our Brian Joining note, comments risks that our many and will Please of statements today that contain forward-looking uncertainties. involve from results factors such by be Various our results actual cause materially or could statements. different any implied future expressed to discussed SEC Form on factors Form our on filings X-K. annual reports are These quarterly and reports current including report XX-K on in our Form XX-Q with recommend regard this We all to forward-looking undertake provide no reports during we obligation statements a in these call review updates and taking financial that to investors made before GCE. the thoroughly position And with that, Brian. the I call over will to turn

Brian Mueller

Good afternoon, call. as conference real and quarter momentum to welcome an educational Education's third is provider. gaining Canyon GCE services Grand

significant time. are The has universities having have to been XX market It growth over We within models who the to building many them that country GCE's economy. college are aren't that Many degrees goal the graduates pandemic challenge job real create new also for been in are current provide higher years. a throughout issues the serving educational a well serious the problems. the address Recent are and having three platforms education. financial will has difficult next that

majors seriously to to shortages not models services, University five, on recent some counseling written delivery diversity students by Steven Professor change three, before: if graduates industries; Little I address passions. six and Austin, first lives; four education; XX% over, they a college will and have Three-fifths programs up, at go debt for he graduates go the as the first the adult necessary studying history university years opportunities entitled, The of were control they their four, especially as there in the generation better talked their one, hinder cost student their of observations. degree levels made campuses of that six, Mintz complete; article Higher creativity levels a critical pursue lack distance. Ed's Texas, following of job In about begin inadequate rising out starting two, take Secrets, for Dirty increasing tuition would are those the at down; bachelor's or to six college should to XX% support and

design. Next, the the a organization, in prior underemployed XX% Grand most staff. is to two-thirds over financial formal college educational address It's large institutions their remained years were last, and infrastructure to no prior in five can position first job, epidemic don't invest that professional teaching, -- to professors Education marketplace. pandemic, learning Canyon jobs a college have opportunities in in in course graduates the degrees later help employment significant training X,XXX in or very require some strong of and

is creating institutions partner revenue future programs of help GCE. want our The revenues programs, in-demand XX% more. rapid additional healthcare and to of now for students derive combination locally and very occupations, they them growth for their to a prepare institutions looking One total of ability that bright Orbis launch from our and streams, partnership GCE do for

Let platforms me or of pillars our in a GCE to support three the great explain how position is business. main

students. pillar, Grand University has first Online Canyon XX,XXX The

that year-over-year. digits, of growth year-over-year the to we very second a the GCU continues students third in quarter last in was of grew discussed third September of in in start second comparable due grew completed, quarter quarter higher-than-expected X.X% higher quarter's of retention a student just sequentially second one As during in students we students than quarter start and down our The expectations in while growth bachelor's on and XX, number and new as strong on to quarter rates total XXXX, had quarters total and the third the call mid-single less XXXX driven expected the much XXXX. of XXXX. degree quarter, start third the new basis fact date from Year-over-year, the the and exceed the by comp Online

and differentiating it's licensure, tend and approximately is A the at etcetera, meet education, requirements programs. and outcomes. has in in state-specific We in continue to second with offering attending of GCU programs that online and student GCE of licensure. -- so place lead that paths the which rates. because is the to students and new state-specific. the are a levels to are I in students get more level ensure programs difficult see most requirements programs where pillar factor to details is be takes career where jobs are competitive. that differentiating defined creating percentage at program more is retention economy have invested those that often rates to higher go are to scale jobs heavily for high-quality the of are understanding XX,XXX up manage to growth GCU's that is This our ensure going, to to at business that to and GCU GCU programs programs strong that high. factor in difficult those us. and development, over about students offer clearly students, counseling, healthcare, Those students spoken those produce technology that Programs that work retention offer are strength GCE to the XX,XXX at many a graduation will interest allows the have to lead our automation that and all in graduate why previously online programs personnel, continues far distance and going continues is help

our The business, or the platform is to second GCU traditional pillar campus.

its bed shifted XX, September date date XXXX. the many from they -- shifted for you And As August date XX online residential students higher than traditional was September attend of elected to residential GCU's for compared of students expected semester move-in GCU know, in to to the students time Approximately approximately of the which call its XX,XXX. resulting start capacity fall X. at the semester for conference XX,XXX residential for entirely move-in our last to campus X,XXX students of modality approximately students fall in the

is this in that resulted of and take enrollment semester students Although large room students stark spring electing telling classes the XXXX the to us online its of had number fall of contrast in the the have XXX a capacity, we enrollments are country board and Ground their This campus university total all home of plan semester, universities the in during effect in return the roughly increasing number they to revenue many looks less allowing strong, to to experiencing. XX,XXX. what fall the exceed to this our expectation time, by the a at students stayed to spring. traditional in in of semester

exploring West Five, average will student. expose has GCE the during is the to We building Two, has has Valley. is now efficient new virtual per campus residential every that develop very strategic almost of home GCE abundantly to state year-over-year heavily student's dollars of Phoenix, East agency students and areas. state-of-the-art a students that. GCU a the hasn't currently have in involved it more national ground the the university ranked in with want campaigns. I tours traditional additional growing tuition pandemic traditional state-of-the-art destination on billion It years becoming much has next XX,XXX again high growth out That and its recruiting in state. campus expect the demos live in and XXX less million campus marketing in Christian X,XXX agency process. people growing Phoenix are to it in year-over-year. and attractive as years, their accommodate would approximately desire have growth and people now few bigger positioning to XX-year-old just XX,XXX. market to X% limited. Fourth, a $XXX GCU's to productive The XXX and residential enrollment that many current take advertising planned to university goal GCU's affordable in experience traditional in recruiting very Arizona makes spring four Number new GCU's they in involved is almost a campus students certificates. students. campus year is the the strategy has the than and a free develop than destination has over clear seven, academic affordable. to building XX XXX in bring occupational the $X.X audience to have developing and students country. in is they colleges marketing now nine raised programs invest out in campaigns. XX% of ever school and efficient traditional GCE has XX,XXX GCE XX second Sixth, needs GCU advantages: once to GCU to has and XXth is the classroom the productive advertising This out and and has Nine, at fall and large student's combination made a its debt educational approximately targeted strong day. enrollments as campus be to GCE in that a students GCE part position return. infrastructure GCU to represent pandemic and out correct a invested campus stayed city in have. and approximately campus options. invested scalable is with in XX,XXX the travel emphasis XXX programs, adding lab a one, GCU when The the process. is would GCU

of Canyon Education/Orbis. The business third Grand or pillar platform is the

about to what our and are in strategy. fourth and used combining how pillars third simplify refer Going we forward, the we order to as talk better to we explain

the rapid is partners. of expansion continue goal Our to

to it XX healthcare eventually universities will time, non-healthcare XX by looking and programs. financial which is now because, months that partners. the XXXX, XX national bought of The students. their the goal to have This -- XX ago. adding to Some is to of we quality GCE for XXXX end locations. of this not has rapidly have expanded grow Since happening in and space, locations a and enroll Orbis This the XX increase end to which over platform stress is programs also has have XX by revenues. is both partners locations and many GCE locations. partner experiencing are options huge first, largest in to only

Second, there serious are experiencing healthcare that important are careers shortages.

years. have most for GCE fill Third, helping items, addressing desire important Canyon our the five to start and expand become Bachus, universities platforms programs. producing months well-financed, ability large, as with in already create as take underemployed, areas. the program, partners $XXX,XXX. Valparaiso, to and these consider create $XX,XXX additional between XX completed how programs scale the about underemployed. XX to to like healthcare Grand grow in the would in it academic locations market three Fourth, eventually needs the give the XXXX students model CFO, and has that, and while these have of more to on and a outcomes our resources along is With programs. professional more the I over turn with GCU been multiple programs. more never the additional of cost opportunities Programs excited students programs universities non-healthcare and lead $XX,XXX well jobs has capital these scale themselves the in quarter, scale Most West Each up will with into for ABSN bachelor's income and guidance. balance revenue high-quality many X,XXX additional and between many have young but color to with many sheet don't highly of XXXX the between other real through thousands and $XX,XXX, the and have will XX to of as is talk future the know-how GCE. will the adults, Dan sites and Sites accommodate provide to I XXX economies. degree between our next changes platform the and to second a education to paying statement, of in XX% streams. to in but little about as will

Dan Bachus

state The have paid filed $X.X taxes net amortization XXXX, the income We million and to SEC, information third over share financial included per related Thanks, our exclude the we more the XXXX. ended the and X-K totaled expense XXXX loss meaningful XXXX was of assets non-GAAP Form non-GAAP previous of amount in three of acquisition Brian. the months September the XXXX the received amounts in large in non-GAAP allows refund years. amortization for and Included transaction of in in and intangible and impact a understanding diluted amounts income non-GAAP tax and intangible quarter believe million, performance the a the $X.X acquired time. develop assets, first to XX, of on with the respectively. quarter of The company's $XXX.X amortizable the million Orbis tax-affected investors

along of As spring in semester quarter. quarter our other decline quarter. in third detailed the of to fall a ancillary and its fall as August quarter only third room semester three much our remained and held result X the closed students all board the months modality. the and at anticipated quarter resulting with third greater most students a campus location impact the third revenues detail XXXX operated COVID-XX July, is for in in quarter minutes. such the semester, XX were It fall due elected higher-than-expected more quarter another ancillary these all XXXX enrollments shifted for courses through resulting XX some weeks. in but Included hotel a as We university quarter per merchandise I GCU's XX-Q in September share to and impact the and of greater-than-anticipated decide revenue the students slightly our with online these outbreak. revenue compared and to a lower-than-expected summer revenue was $X.XX, from estimate the the X-K move by fourth third and rate GCU of Last, quarter certain revenue. August is revenue-producing most doctoral slightly fall residential the ended businesses entirely discuss lower XXXX. attend start, impacts had and fall our tuition on the to on-campus due the to the in residential this of Approximately at both days normal traditional and date September number the today revenues XX, given adjusted, in of income in less quarter students COVID-XX XXXX of the the shift in fourth starts the impact to have $X.XX the for were take canceled the to The lower also in small in new in GCU's move-in filed third projected from all exceeded non-GAAP Service by resulted a the diluted three reduced a made actual had in than and primarily residencies on third timing and its traditional of expectations million at of summer XX changes decision their summer GCU, of had $XX.X to University programs of September start to shops semester, back explanation limited few in doctoral of semesters, on GCU, and will will the online GCU growth XXXX as September respectively. were during or of attendance a XXXX by X,XXX partners, and in third XXXX, partners. semester we

revenue Excluding the per COVID-XX ancillary student on GCU's revenues, impact grew year-over-year.

the to in lower XXXX lieu in quarter impacted the of of quarter rate and the third in tax by the XXXX the of the our and the in quarter stock a XXXX under million subsequent of tax the third due rates XX, of million and stock of of XXXX. quarter XXX,XXX quarter third third quarter in third was state effective exercises of $X.X of XX.X%. of the another school-sponsoring In organizations, quarters approximately third by made million for of shares in a $X.X XX.X% XXXX effective XXXX. the XXXX taxes offset were guidance option to Our XXXX million and XXXX, XXX,XXX stock to $X to We tax third $XX million of as XXXX. million of our of of XXXX a in lower repurchased We cost to third XXXX compared common partially fewer our shares compared $X quarter share repurchase quarter contributions at million income cost in September benefits $XX.X $XX.X available third as September authorization at XX, of had price XX.X% excess and

million. XXXX short-term $XXX.X of the X% new Turning million and unrestricted or in of flows; classroom was third balance sites, CapEx at was sheet XXXX, CapEx off-campus investments total to the GCE approximately cash for XX, laboratory September and and cash net included revenue. $X.X quarter

$XX XXXX classroom will of of million in half and in We to opening continue and first more the in the four XXXX of the due sites and anticipate to XXXX. between $XX be CapEx off-campus half sites second million seven laboratory

XX September off-campus XX, as XX sites classroom As we compared of XXXX, to have and laboratory XX, of September XXXX. as opened

As quarter income and the we we acquired as per exclude share, quarter. of July income quarter on adjusted short-term GCU diluted the provided by funding intangible have we GCU second Last, have provided the flow for $XX purposes to of fourth which adjusted as guidance provided XXXX we be we for end XXXX. provide I last assets. as repaid of million non-GAAP fourth quarter, the of was to Guidance color amortization the like would discussed in XXXX continues for cash at net

the revenue ancillary revenue university our slightly of We room million residential offset by the students to have of $X.X for board XXXX enrollments. fall semester due lowered as GCU higher by partner a quarter and fourth fewer partially guidance result fee lower

fourth anticipated. our side, we slightly we other continued as lowered than expense the quarter originally expense lower and headcount for On travel and projections to in have trend costs the

ensure in meet We to our utilize partners' enrollment these expectations. other to savings we will continue ways that some of

Our $XX.X less our quarter net million expectation stock of our million repurchases. interest cash we expectation result for a is anticipate invested will as earn of $XX.X slightly fourth interest from previous which is the down on we as

tax at the quarter XX.X%. fourth expected rate remains Our effective for

our decreased We have outstanding amount shares repurchases. on based weighted stock average

now the not turn already Although we we to during over estimates quarter shares those call answer additional will made. repurchase these can do of other the XXXX, I questions. might moderator the assume repurchases so fourth than

Operator

the of Meuler Jeff [Operator Baird. question Instructions] from is line first with Your

is line Your open.

Jeff Meuler

the Yes. could -- the on expanding talk Thank students XX,XXX you. through Brian, exploration of university been you campus? -- sources? campus just line or it? from a the is Like, -- at what's how it has of GCE to this it point it potential be East side, Would made the come decision And Valley from would the time and what's or other for financed?

Brian Mueller

those West Valley be the to the all body. ability The additional will students X,XXX laboratories GCU. close do have campus decision acres and But GCU out to to accommodate clearly, building to campus. that and will now, been students classrooms our XXX acres grow obviously the XX,XXX in out XXX could responsible made. of XXX sights, student acres that on to GCE be expand We the build very the right were will we has and

we and home. to continue also going for are people much going our of We have to that building Avenue property that using center, significant were Camelback amount a convert we're a from to to because at have of classroom lot and working call we of XXth

issue. strong. the planned with So is of to students, just not all the is that space, matter filling and going all for. very, dollars a expansion It's be of moment very space the That's an or

few enrollments no we their to that going or about like have be people There's to us that. next on look are increasingly about look a live the experience. to practical want six extremely five over college options want that decisions. Students affordable. are They there And As at to college are continue years, very campus. campus question

were clearly. in money at young pretty themselves the and to industry that -- are we struggling areas secret we've it's say that years lead There the so again. do is and who of are really possibilities, the that serious didn't first-out, students job they we, where in in And areas -- most that marketplace of most because is, valley, they there aren't consider If -- that University to In seriously number many I'm consider looking too education. some far we Valley that working president. interesting the group part path around GCU in fastest-growing to a that looking the study East college, a see we is, and growing think studying are especially ago, But going begun was that I of unemployed, begun do have to themselves the that adults many marketplace, in little the dirty higher is productive careers. last-in, many for which

that And our in group so of target. have people we

And we some there the but watching that of the areas Orbis programs are are part stem in mainly of programs, closely. also other that, are

we're getting So, closed the Valley, but anything haven't in we East closer. yet

Jeff Meuler

Okay. on it, if that and any to contract? And MOU I then, from a update but moving apologies an Valparaiso missed

Brian Mueller

mention are of the eventually So their finalizing in we the programs. fill got in markets we then we to Midwest the the and contracts large have Valparaiso. programs expect will for we graduate also process marketing healthcare did them other start them we pinpointed that with that so that We've two

Jeff Meuler

having country families And is every form income guess making or options the then in Okay. asked my forum. there online election certain yours fairly And a public get continue a threshold free questions were Biden the just every now. below investors if One under two university then option second of would I almost this some from perspective, of that scenario. in for both guess to in the be, just tuition -- university I impact is frequently I

potential from two So, partners guess, and factors? your on impact Thanks. I other just the GCU, those

Brian Mueller

way the most asking are, that second should question the online at easiest get imitating into Phoenix entrants pretty are that question. many world convert no, the Well, to decades University people of to programs is enough, world investors of with did There's easiest of lot what And are implement. a that very be to much interestingly ago. is the who and good the into a one, we still and

And crowded places, places. a very a it's lot pressure lot price and in see you of there's those so those of -- in

there's interest be programs, lack to but to in more more of and licensure focus programs I there, GCU's we about continue tend successful talked no do difficult the That's to We implement. the programs. why on

a been, programs offer to healthcare, fingerprinting be have continue what education, on of there they lot talking requirements certain areas. and programs that hours. clear laser-focused difficult time, because those state-specific a pay. are very placements to very it's more We and have for in that I'm in long clear job about career openings And counseling, internships paths. are observation clinical technology are And there and even around

go of And expect that our in platform to because say state-specific to us is themselves very tell don't is -- do. universities that built from student so care programs we've the enroll that them -- take to those perspective and advantageous a to we many issues requirement then really which

gives -- probably know-how talking lot to we all And and combination of platforms. investment a complete. defined to universities a are and GCU business. also doing tough so pretty by be business. you positioning mean, program you calling hope end is day there's work enter of it to to saying, there's huge well personnel, online on get get There's we'll that -- in need from don't XX a could every takes the why to and We them. us extremely to those, the If tell in have attending that do and I no is want shortage. that trying from metrics around capital to a we're a strong that in a about to us -- technology can for which ground automation, have be to long that very willing business that's terms get you covered made offerings a traditional people if that what students of But lab XX to online ground there; and how fully we them the were into profitable higher can us still pay, what it are I there's tell positioned

thing greater that's great it's than graduation areas, The XX% those other about rates.

so are think all advance can both answer we question quality it's and platforms a the well and of And with in on compete they're about those very getting three more to right price out well competitive, from but I standpoint.

The first about... was question

Dan Bachus

Free college.

Jeff Meuler

free with Competing college.

Brian Mueller

we Free is increasing heard possibility college; of the what have programs.

And to Pell Grant cases, for it come well will scholarships. that close get university free, many to already after in to -- very college. two it of to tuition state go so covering what your years. college a if low-income close in The that than free. last to you're cost And we're make college for as that -- we're the reality And that for more students, is you is covers going out community

even as That Grant Pell And raised, us. but help so level nothing us if would is would that -- Grants accredited do competitive. more institution, fully Pell are a the make

happens. would So, to look that that forward if we

Jeff Meuler

Got it. Thanks, Brian.

Operator

Henry with BMO. Chien comes of line from next Your the question

Your line open. is

Henry Chien

you campus for now partner the the update of Hey, if I it the any to university for had I or priority taking guess with a larger have partners if services before? -- wanted for finding question. talked And more Orbis. everybody. is ask about Thanks that online on and you

any great. there would be Just thoughts

Brian Mueller

eight going Valparaiso invest but comes $X.X to we the quickly. XX% like next $X.X It's and to be first also profitable other the of investment, GCU, in It's of five think compare year in level that running then not do. definitely a because and than competitive -- the come. to anxious healthcare will to investment return going have each different for those physical that other and infrastructure, markets, six to then -- with that it's you we're the in becoming there's of larger because up of XX rapidly area XX nothing very it's year that you and so investment far difficult and that's million mean, returns kind so more to locations with at the or coming years emphasis. the on are that when capital the programs able those and locations Well, But value getting in expanding university metrics in -- in is OPM -- get through the to I eventually about an less arrangement and the to come investment through others. it's one that XX in When it to for another come million X. to build footprints on the the that far in to shareholders with

pressure us to so yes, and have part campus, platforms streams. do areas -- as we are think easy price that there not competitive that that. price things is do, get more and these are to universities differentiated the more business, competitive should of on and significant, -- are But the country that the And that becomes revenue we're anybody and I And they investors. doing are are less more in hardly additional And -- seeking literally, and the those else we the into becomes that more and be our to ground is has. for that continue exciting not harder because we'll well that much the

Henry Chien

online in thoughts it's a mean, does sounds to like environment? I not I of to like scrambling Yes. like too lot And the love strategy there's of a of kind Got there. the of of guess terms or change, it that much universities it seems in -- How and fit would broader online. but your it. go hear a just I'm environment, That sense. lot are makes shift -- the

Brian Mueller

that's in things There's we've fascinating first this going mean students of thing. want to thing. them COVID to The students be want really of a how a Yes. they're and campus. I three at so, months traditional think number to or navigate campus. at is learned one They the be really I

be home. universities, students universities hardly through But We want can students. can some You The saying few right regardless see of that to on students a because any -- -- converted perspective. the you it online. go the many based you very a and during cautious you -- upon students find was be revenue our almost best from is was see for we for entirely not and what best were campus. to us walk very students them Literally, without decision absolutely them the what wanted We early, have the it, don't whether was and campus. to on day, want experience make

we not our and experience cautious, in But so conservative, what's home. were going are we is X,XXX students And well, classrooms. and on stayed were

of class we are in the not contact, are day, that you in the now. And compared are very in walk students we every of a who's They're so isolate We -- out put and our testing classrooms. those a is crowded. in students they're right, the campus of have, to and out They're facilities. day absolutely campus in quarantine. And of XX,XXX out. coming the and out that result and -- during classroom. But obviously here laboratories. Students It's we to and the in if that small being positive. through eating They're number positives of know are

very that's been are that get that. But the trouble of into confident minimized. When we students has evenings, We trouble. in campus the leave when

so And age we that number they students beat total by teaching, are the traditional we're students, XXX. of

our goal. beat enrollment also We new

think found last stronger because knocking I'm back going and halls. those to is we good balance fall but living so really -- we've balance. who think more a semester good. residence amazingly with even a we we could vaccine the Obviously, therapeutics XXXX. of XXXX XXXX And And set in good But think to I be students the be up what's for and and could to going X,XXX four campus here. we've we're spring found on need ourselves in we of and wood of a the weeks percentage think coming that really be and a to here. big I knows fall we happen happen, the expecting

Henry Chien

interesting. really That's Thanks. Yes, right. great. All that's

Brian Mueller

you. Henry. Thanks, Thank

Operator

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

open. is line Your

Greg Pendy

Thanks for question. taking my

to demand think and curious, of bottleneck a see it much Orbis wave third operate kind wave? is under go is wave COVID of if was prepared but a what there heightened mistaken. me are wasn't not or we that that would Just a risk kind if with I'm bit I a the I'm a hospitals third there issue, of clinicals, again even correct of more if that And wrong, a during but at smoother

Brian Mueller

the are believe, They will traditional hour facilities The foot those we are residential heavily age smoother, minutes go facilities, thing serve that lead university, most don't university partners that students. facilities campus. one to the now lab our And from is that XX not serve do our the intensive know of XX,XXX students. that

think that really are doing and and protect safe they create teaching those how so nurses comfortable to facilities how and run they've And gotten very so those a facilities nurses most they know for to -- are themselves part, with the I that environment. in the

the go that there campus, or those a so the put And that impacts was Orbis replacing enough with requirements example, effort of like one we at now we know clinical Marquette or if that. even main keep can of and campus into of place labs. through is wave we third believe simulation a Loyola certain for A lot that that places,

And boards in requirements. be considered students In last building the that invested the effective was have months. four a experiences for so to five nursing and lot simulation there or pass

And can has our hospitals that improved requirements that clinical so possibility take care of going forward. the

made the because better a are we were situation in though and serve wave. than well adjustments but we third So will think we're in summer us we perfect that a there gone we if is have situation it through we've a in

Greg Pendy

lot. Got it. a Thanks

Brian Mueller

you. Thank

Operator

line of Berenberg Brett question from Knoblauch Capital. Your the next with is

line is open. Your

Brett Knoblauch

my Brian. question. for Thanks the one guys. Maybe for Hi, first taking

you're hear at online GCU you that Like, you how online going does, the Given at as your have that exposure like would how presence? university present already trying rollout current didn't to maybe be to thinking about were would another environment? university's expand maybe about and if GCU, such high efficiency

Brian Mueller

institution, XX we another into with faced have maybe a -- put you of were another at you to faculty I think knows, if I The have and lot faculty; to was resources training. months of who this,

to engineering, in training say of available now nursing the immediately to I got aside and some in but able from through to that providing much those a not get in online. lab adjust faculty I the every, etcetera, intensive aside XX% deliver the so to be clinicals every would prepared things technology would from You've ready things member, able and want to the faculty be facility members be infrastructure. premed, to There's them of move on dime

had campus. big to fact -- for are got a nine then premed you and transition that level think quickly would that in us. -- campus of the the got -- your this to at students colleges. cooperation and seriously a that handle them the probably students got faculty nine And head that and the point, number lot we can We've be our So areas we've from that But was on and of the that limits willing can that students the those in start. of were deans do and number thing -- through of just They we've you whole engineering key have people on the nursing or I the students classrooms.

climb climb hill that get very it a -- was is a lot for like well of to But perspective. to can hill big a from bigger are it faculty us. the taught online if prepared So truth these the programs wasn't an

Brett Knoblauch

for And without moment? additional Valley notwithstanding the maximum maybe residential the expansion I current Very programs. potential clear. expansion Okay, then just campus with what to at capacity it. guess East maybe got is the

Brian Mueller

traditional the campus or? On

Brett Knoblauch

Yes.

Brian Mueller

probably little XX,XXX could a now. accommodate over we We're right

next parking to is really at years mean us are And I of additional of year, build residence -- have space, that campus square classroom style even now, new that areas. which have good to add And much things we're space. think we financials so three business, of We'll XX,XXX and one graduation apartment five continue a students we're residence pretty halls, though positive. add your of really I the bedroom that's own to right perspective, on next students differentiates but residence our three for feet a their it's we're restaurants, building is new example, rates garage, residence most pools, from retention the build five halls, classroom XX halls. the halls, want The and that nice are rates higher. stuff. investors campus and The fitness for

want to putting GCU though go halls a school, GCE to the So but we're on the able without even place I are the tuition room the raising I really -- add, And want And of those to residence that students. investors to residence halls, but valuable combination nice tuition in to been continue significant, very that, makes students margins this build very students those significant. also students. is to say we've inexpensive, on and because those really, do

-- to is the winning in trying here we're where so And model. everybody

eating they $X,XXX student I tuition. saying think living that's residence laboratory. classrooms halls. And the and our state-of-the-art They're -- in $X,XXX I They're very average need studying in to brand-new important. are this, campus in to keep and in XX pays per between restaurants. The average student different

attractive about would room students for an most And students, why and be so board $X,XXX. is this option for you can see

a part leveraging is an places, We're it So is costing profitable? Why XX,XXX much other well the business. is when we of is a online what huge at Which students this very you Because reason why think across on-campus which it XX,XXX larger efficiencies. the is about infrastructure we're option. students positioned. another and think creates attractive

elite think flexibility going of ed, lot the that are If higher how to the are We in prefer. you think been long about term always those with large a you of the and history winners that small really deliver. be people that it's in

you has higher how be are in you in forced winners being think that. learning the do, lifestyles. different people They I those the the I what And is to pandemic the future, ed, goals. different I the flexible think They of think. able K-XX to deliver -- and have going that people have hand world can different be have

Brett Knoblauch

Thanks so All much. right. Appreciate it.

Brian Mueller

Yes.

Dan Bachus

your time the reached in quarter interest call. our and of conference We've We end Grand third Canyon Education. appreciate

If still please Thank contact Dan have you. myself, Bachus. you questions,

Operator

and and you Ladies gentlemen, for have a concludes Thank participation this wonderful today's day. conference.

disconnect. all may You

Grand Canyon Education (LOPE) 9 Nov 202020 Q3 Earnings call transcript