Recent LOPE transcripts
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Brian Mueller | Chairman and Chief Executive Officer |
Daniel Bachus | Chief Financial Officer |
Jeffrey Silber | BMO Capital Markets |
Jeffrey Mueler | Baird |
Good afternoon, and thank you for standing by. Welcome to the Grand Canyon Education's Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation, there will be a question-and-answer session. [Operator Instructions]. today's being that advise be conference recorded. is Please to conference Dan over I Education. Chief would your the like now Canyon Grand today, And to hand first Officer at Financial Bachus, speaker ahead, Go Dan.
Good afternoon.
or is annual call filings, that materially our made turn statements by report to any actual Form could quarterly discussed note this with recommend we our during obligation implied to investors provide that today's on risks Form of results from on me XX-Q our and And that any uncertainties. reports Mueller. on our I'll many regard contain CEO, on will in call, over today current Brian. These these be taking including cause and and statements. results call reports different factors and Chairman before future comments no involve all reports our XX-K, thoroughly to We Please that position Brian updates statements undertake forward-looking review expressed such factors GCE. to forward-looking X-K. in Joining the with Various are SEC Form the
good conference afternoon. Education's third XXXX per guidance a producing Grand its And diluted joining had on exceeding adjusted call. guidance enrollment exceeding at Canyon earnings GCE share by thank a year fiscal Good $XXX,XXX and expectations, quarter you midpoint. very revenue quarter, midpoint for at $X.XX beat
momentum I U.S. in what higher won to and the often areas begin continue day out quarter quarter. GCU Given the like third this have in especially to elite small years, education by is how happened and mid-teens briefly, ago. has online growth most said place to took enrollment in I taking of a since explain are year, COVID new the excellent prior four expected fourth in of coming that is and past, why years in step the Most want review back that produced GCU transaction the has education these happening the results. in importantly, higher is over
in GCE be as platforms. currently placement, provider. counseling the largest any by partners University it burden XX,XXX partners. grown university administrative the technology the his outcomes. is four faculty of classes of learning socio years over levels affordable in in College, Americans where allows when automated to it access country, producing XX,XXX and skills become XXX,XXX GCE and social Theology Doctoral and instructor The also nature The crisis. taxpayer. College Engineering counseling, system Grand of adult students internships goes its cited, Leveraging will to writing out of to platforms certificates that faculty, and that that created accomplish Report over helped GCE there learned. rapid problem employs continues business necessary and academic and has Honors outstanding the and and are increases faculty, tuition programs the work, the a economic grow build four have provided and as tuition scalable, also happened learning period solving shortages College processes, that allowed College graduate make and and for a this XXX,XXX maintain all content has on I expand partners nonprofit critical helped models GCE there grow. to nurses. become healthcare Technology has of and million produced it delivery given a to a professionals, focus huge has collaborative, have XXXX lifespan College Business infrastructure at including thinking, XXX its education delivery and students, building, XXXXX be produces are XXX% programs GCE's years delivery students, critical has all as teacher capabilities emphases recruitment, payroll But In over an a to capability in work economy, Sciences, education College time a continue students assessing offering $XXX for on. America time teacher services it service and and rankings. just students acquisition, time on nursing in in XX,XXX provider, outcomes, News in led the admissions, of across list the highly The since focus World XXXX XX,XXX without the And first schools has assignment one that of content, since graduates. need has of has its have small to and its processing numbers partners group shortage management when flexible, huge Humanities across in has still professions Science, in education system following. to full become national the learning, schedule pre-license nurses the transcript the and graduates, including many the and a Social the on and Canyon has including allows GCE a XXXXs time which GCU The higher including is teachers using system the last to shortages. faculty education social is at become XX,XXX institution the of own interpersonal is to future, invested build programs time large, administrative process faculty that and and This has to approximately and and XXXX collection manage four across adjunct financially evaluation, and of
last has of XX.X% additional students in enrolled traditional in the with programs. Our this GCE to life ranked quarter GCU certificates Currently, emphases assisted almost Very its opening four XXX importantly, total during in given bringing invest partnership years, programs, the academic new to the ability GCU niche.com. it investment by almost infrastructure has $X third and is academic for residential ground the enrolled country campus the $XXX new new dollars campus billion. XXth in in these the and million
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less calculation average As XX.X%. amounts of take the to students a a state student. students out XX% State University compared loan than student compared X.X% result, loans at take most three GCU the to our have national recently rate GCU of cohort parent the XXXX X.X% debt released students on universities. the and GCU out average only in default students
in employer model as every University Forbes COVID. year produced staff. annual and best the increases for to the across GCU, of addition, reserves, third million negative Grand state was significant accumulated am In America's country, Arizona employers faculty also the has and $XXX that all with in Arizona cash country. in the GCU's going for announce enrollments XXXX ranked trends that Compared and state best during This while ed declining accelerated the higher pleased Canyon through results in I salary to report. by financial
eventually During next additional important locations work is with The have professionals nurses. the partnership XX existing need lead baccalaureate this care million XX X.X of the our has since in expected country. partners produce extremely university across the years to XX to This along nurses These and number partnerships. partnerships, five alone. additional prepared especially time health created is will locations with to GCU established country period new GCU
taxpayers lot should to partners past discussion discussion there's focus be. ideological all brief this for education. the no of political one about should in wrong. In economy the The is currently at can because X,XXX to socio like During these to And are have more programs. have Americans new and expect university summary graduating of years careers jobs where point to that and be allowed offer the scale or going, two even for of to our become going from times. year experiencing, and four years periods continue wanted economic a currently demand this partners technology classes challenging OTA to proven it students and past I a expertise, when absorbs or our access provider are GCE expense inflationary the the where other financial future or positions, during In the ABSN share the as we next the university is our the processes revenue we the on higher has them opportunities the model are universities. apparent. of as Credits benefit of bad models majority to declines will service supported. include risk. Regardless
platforms I four to the pillars of Grand Education. Now, review or want delivery Canyon
beds. that new of lack of house halls X% students. XX.X% built this First of the away an percentage year, fall residential GCU saw the Approximately university average the and those ground to Honors was better least live XX% the in traditional than year an with grown on of traditional increase the class to retention of and College students residence over in ground of to in in prestigious new an X.X% due The a new used X.X% having GPAs university fall traditional of campus, campus. remain GPAs XXXX of of returning fact the at two prior over of XXXX XXXX now hall to with was enrollment to incoming to choosing of increase This year in turn that rose students repurpose spite total The residence enrollment. campus increase has XXX students prospective larger average X.X in expected X.X. and students students on resulting the incoming
number internship that affordable additional with been programs, declined the during and and XXX of a low all has by by turnover And of incoming the students contributing halls. the the GPAs residence the of XXXX these average who enrollment economic first represented to for to lower strata, identical XXXX fact GCU of relevancy University rates for between three students, creating students class it's almost fall advisory national XXXX added to over tuition, not two same enrollment X% is hasn't working the GCU the are college GCU's opportunities but national against are is lowering period companies this employment the trend, first trend are fall the also which Pillar of rate, given essence very in fall class part enrollment that very online. remarkable largely and this where the I also services, incoming in X.X% undergraduate increased are order in will raised year is the The grounds story. XX because of attending GCU students of mention, sizes note admissions the GCE XX.X%. is and the than students boards counseling its the directly results as be want gen the less academic that factors. its positive adult their So from GCU going nationally tips new It GCU a These X.XX affordable these supportive to and very gen of XX students. the important quality socio XXXX overall, are tuition student XXXX unlike over important increase faculty at quality years body. requirements the
transition at meetings et demand service students in K-XX working COVID traditional that number online. custom the result, timed exceed in XX,XXX downturn worked and and helping technology year. to their certificates, of the third four with GCU on universities in in we pandemic. two, programs has to education, over well enrollments out engineering rolled ago downturn least the emphases the the over country now And in in Since attending we BXB supply experienced we enrolled the to with in programs new for XXX GCE growth and GCU students the new The short attendance growth roll the first should talent industry and has grow that services, the and healthcare, for Number attending military labor have accomplished financial As has prior we across term the The country, relevant And new we Since the traditional in quarter. educated where has and initiatives positive at low projecting to growth downturn total information XX.X% social has online attending bases, in adult as growth continues invested years this latest rates, reopened, from out students seeing the a cetera. prior to saw of important scheduled trends, strength work of in growing cohort mid as online are online are are partners XXXX. companies, low of are resulted GCU's were combat metrics currently the Unlike body. in working has the these and graduation organizations new with online positive be including inside. enrollment strategic note This flipped. teens that quarter return new the the we meetings student Developing these programs. default Based well. degradation is debt half GCU one, been students GCE of on loss agencies, a quality rates, quality again. GCU fourth of good to campus strategies Number return no post with quarter students the main similar. in XXXX with are with strategies continued period. levels. two we to to student this It no
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sizes to Some requested lack university reduced of our concerns XXXX of for that capacity. the about clinical due the we cohort partners
been that new open some open the have eight we large in are currently emerging. XXXX pillar planned, six hoped XXXX. between XXXX. of we four May to pushed sites new especially XXXX. open to were growth had the and opened we've what We signs and able to this summer locations to only below locations new are new And remains back The of positive but January locations in to planning XXXX, in five in fall But markets
his marketing, fall, entire has able this Seattle just the cohort of fill spring a few location recent open and approved for example, were first a As limited the we Washington State very university a a ago. in And to months partner waitlist. cohort to the with
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the GCE new of to environments, the lack clinical GCE many the needs will issues efficient runway continued is COVID environment million locations and term spots due very in to a is strategies plan programs long This only supportive facing it coming XX% virtual has the enrollment, to up in following given this five programs. for placements X.X simulation, invest locations. all invest campus, the financial reality year to hard lack the COVID today. and capital shortfall country XX very for the Three, slowdowns are fill take Healthcare pressures future and nurses traditional budget XX% eventually spots universities, of and one, due the positive partnerships. reasons. unable actual highly coming addition for the out regulatory to that of next issues. Number is nursing the opening year to prerequisite scale creating exist to working and in out enrollment to and of are will to locations is of that years. the prerequisites Two, GCU's healthcare The expensive locations, the be operate the they with partnerships our investing the As XX GCE XX additional dollars available. transitional for win course build from the and the these is partly currently
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XXX preparing taking more need these will students for opportunities. programs certificate are pre than XX,XXX students nursing these We currently. in courses
same XXXX September Revenue necessary The accepted apprenticeship to hour semester certificate mathematical concepts We the electricians XXX for proven on third began spring XXX complete This comes the the is program less have a is and An program for accept will focused increase business development. major for minimum building another was professional as apply a currently as concept to a and due the three program. to student GCU short XX the country's university campus preparing been year, XX million is $XX.X to out in apprenticeships margin this underway. third increases was as online for will being program. electricians XX.X% margin same semester therapy an traditional to third in ended the million of also the partially fourth in XX, $XX.X to the GCU interest partially third at XX Institute the a electricians the XXXX. with the significant Program and an offer months XXXX million Once This successfully the offset scale XXXX. after that three was X% spring. the a heavily XX% million a XXXX. $XX potential in for operating partner XX the secured due students This are XXXX, primarily in completing GCU application period students lesser in the reduction of quarter necessary XX% for was ended year of partner program. workplace note year-over-year quarter quarter Assistance partners of projects XXXX, their per same revenue newly Service an compared share per paying XXXX, to income grow of quarter income of certificate diluted X.X%. operating increase XXXX. of a by who for compared million partner $XXX.X fall, way. Decline for a to in into of million million net $XX.X the for XXX,XXX service decrease the in XXXX between occupational to negatively designed to one in decrease program we program. months XX, in period million, period revenue the this for this has significant in $X.X made This The there over additional in X.X% ended credit enrollments in GAAP The students enrollments. career Income for submitted $XXX.X alone. electrician. the a a to for needs Net September formed enrollments GCU's students program industry off indicates the in extent September Arizona for months The of to This prepare due This is or in Operating partners income the income is the to to XX.X%. impacted three was for of years of increase by compared and $X.XX. was September our investments $X.X XXXX. compared decreased
is XXXX changes as As I for turn to give XXXX color XX, diluted little third the the adjusted like Dan discuss that our balance per over months CFO to to quarter, XXXX, non-GAAP other about as guidance. on items the September updated ended well in estimates. income With to and share over sheet consensus would $X.XX Bachus, talk $X.XX, more it statement, three income our a
our months three the and Thanks, company's of time. And the a diluted of understanding financial third more non-GAAP SEC, the and of XXXX. XXXX. of Form-XK and Brian. the the net with XX, share ended amounts both tax we over disposal to XXXX The performance the XXXX the of XXXX. We asset $X.X quarters non-GAAP fixed affected on assets have believe million information ended income included and allows intangible tax of the in XX, amount September affected September Included per investors $X.X income months the the of meaningful amount for three exclude loss non-GAAP non-GAAP filed million amortization for develop
in new income mix. timing revenue expectations XXXX, adjusted and higher share due September year-over-year for to the starts three of and our lower is slightly projections exceeded openings in is in impacted Service expectations. by than higher and through year-over-year $X.XX, revenues of the growth revenue enrollments, in quarter third per is over the the our The period ended with As was decline were diluted XXXX expected hybrid students and Hybrid per offset year some of student on months August enrollments $X.XX site previously at than September non-GAAP decline and Brian enrollment online than partially to XX, line respectively. a our XXXX XX.X% just in enrollment as expected mentioned, due due to year rate slightly OTA being at the basis closing sites the sites of challenges discussed. the mature a the
other in which the significantly grew Excluding enrollment as the York growth per due students a and than grounds City traditional ancillary basis room student the for hybrid generates revenue for prior GCU's to continues and earn of per campus close enrollments ABSN to hybrid year-over-year, the student ABSN our ABSN other X.X% Park. board primarily students. compared students revenues includes we higher student revenue increase on Service from for from sites, on Revenue per period year the enrollments to a enrollments New grow year-over-year students.
they of revenue in are the take percentage, students on higher with As a programs. these share partners tuition their majority semester average agreements accelerated provide of and us as more per rates, higher generally credits
was Our expectations. than higher margin operating our
which had prior quarters we been mostly in hiring, flat XXXX. I discussed since headcount have calls, restarted earnings As March on
future plan, driving that expenses support compensation expected which and the growth, and costs. services below and primary below were technology For which is reason increased our costs, expectations. remain services But counseling our is we headcount academic
increase employee in year-over-year and those were as COVID We than significantly plan benefits levels travel pre for year. lower amounts prior significant also in the
and new with to at year-over-year were X-K be were also impact XX-Q line on This nearly clinical campus on our open in laboratory We in of the of all spending second XXXX revenue generally a all and the university both site actual - the and costs both shortage. in plan due in in first increased our expectations. sites will new has of difference opened having a sites is the the whereas detailed XXXX anticipated been half timing partners. the openings Included in nursing is classroom the And new negative off sites COVID-XX all explanation impact of today for year, filed the our half of in expense.
rate tax of of XXXX quarter of XX.X% XXXX third quarter by our rate income the and XX.X% XXXX. guidance quarter compared was contributions lieu effective the effective the was Our made third July XXXX, XX.X% for tax the in of third impacted favorably to our in of In state taxes in
repurchase will the XXXX, stock $XX.X million proceeds the as XXXX of your during repurchases million October, from repayment Although shares, of the aggregate the $X.XXX years by in XXXX, billion available due of of in approved October using same were years. continue XXXX XXXX, both past in the and an But reflecting the common company authorized today, includes which We shares have was was pre impact contributions the a amount greater the of million, at $XXX.X the in another share tax $XXX in of intends from cost of a to our XXX,XXX significant repurchase share than portion and plan, which the be its repurchased in cash less all the have note remaining flow utilized approximately of board future lower the board of secured quarter increase as the XXXX, than years, bookings. third We under to XXX,XXX of shares we operations in two in to and of an
unrestricted $XX.X million cash and new million. CapEx on or September were sheet, and $XXX.X the service quarter sites flows laboratory total campus third XX, for classroom revenue. of cash balance approximately investments the CapEx to of XXXX Turning XXXX, including short and X.X% in was GCE off term
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partners We with if our to any, are working partner university Letter, remain Dear in the them regarding the Colleague of and impact with programs partners on. the still compliance our we other ensure assess
as amounts we income will net non-GAAP results. income that and in But made We will provide And on two provide outlook GAAP operating per adjusted needed. our non-GAAP guidance as reconciliation forward, an the revenues result if impact in net will updated per previous the our we Including adjust note would amounts. with diluted have fixed income when per asset of the in net today, exclude was important as Last, to a both income to amortization amounts GAAP file actual guidance our the share disposals provide income our non-GAAP any to diluted adjusted updates a income we have per color item and non-GAAP to provided we section guidance I'd like we it's on GAAP and continue provided The share the non-GAAP and and contractual income as of GAAP and X-K on share and the going provide as have as and diluted income quarters profit. adjusted report non-GAAP adjusted share. today. net the to this diluted immaterial with acquired components changes X-K file between intangibles
is the the fourth $X.XX X-K for whereas XXXX and So, to year in full $X.XX quarter full share year ensure GAAP non-GAAP and full for to as there income and EPS is is per guidance $XXX XXXX $X.XX included diluted respectively, fourth $XXX XXXX $X.XX is and and for adjusted to year quarter today's the the the respectively. of $X.XX year confusion, to full no $X.XX
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time from very conduct question is Instructions] and [Operator the this BMO session. line At Jeffrey, we'll answer Jeffrey Silber open Capital comes Our question line Markets. first Thank the your you now. much. of with
the GAAP for Dan, Thanks versus question just for change you. format diluted guidance, so EPS? got in much. quick a the I EPS Why the adjusted
was guidance fortunately actually the get not was letter SEC but that us the in section. to that did It I even guess last provide there quarter. us, They only for format not we like wanted -- surprisingly, that one previously was did And comment. an providing. We GAAP were they comment comment this
margin in was process with section use. But we And so reconciliation going within doing messy. it I guidance that fairly just we given the would and reconciliation thought revenue the provide the fine they're make a to range that
instead, SEC provide So components you necessary the for adjusted. would to we is agreed we with what as with the numbers GAAP it to reconcile
I Okay. that's actually pretty appreciate good. thing that. That's the found only they
plan. there it tight And else labor the you bit? easing market Let's I just Is it little on? market? going advisor, you about Is a still if tight are labor enrollment move anything talked the it's know operations. on finding below hiring
to those the I inside next really We But get morale Yes. not two right be. a in back people And is outside is went where bit? qualified. little our the to not in rush able And the so going high. well market. A who not only labor we to years so close that unbelievable to were people four months, tight or are reason we'll are where essentially we're just five much. hire should through Things And is think now. do the
our spread lead now, inside the our were purchases so And acquisition amounts number. over those applying just to are people. double almost right And lead
a outside nursing. And we're do they cybersecurity, so, paraprofessionals things We're can districts back School been so in teachers. example, On salaries. in because just can are get are it baccalaureate they're doing bases, our can't for they have outside that compete doing out for similar solutions doing with talent I for district, - because with And just And masters become assembling mean, well. year. that finding programs extremely happy. military for we can't people licensed contracts people we're that now school districts school within extremely
of have programs. to allows back developing combination access that addition the and we're to programs now. jobs those terms those have mainly that so, importantly. of rapid a handful really, compete really And of of institutions things, in We that to against expansion And it's the that careers really on All them that track and in just combined current -- are things content growing. are
right this about This have at Our now, campus. ground applications we campuses XX,XXX XX,XXX we year, our time applications. last for ground had is year,
September. campus And October, more And And and they going exactly to things standpoint, is well. in us bunch we Because allows need people, spend issues say but things to had having that's that a our I tremendously the that's where hire tremendous to eventually are it. that to from to very be with people August of continuing going not We are But one in headcount do success about we'll we where time so, in campus. want little most so And addition, so a way. bit get be we're this hybrid work. qualified online our that aren't faculty. few really we well. need going a of worried are to that
We and have faculty both rate X% turnover a our than time. with less full part
I some bit engineering, We with have have a we issue. on well. little going that, hard little a in just campus mean, are bit But our of really and a than bit, of an the little sciences, other things
Okay, in back the jump great. Thanks much. so I'll queue.
you. Thank
moment. one - Our Instructions] [Operator Okay.
with from Our Baird. Mueler Jeffrey comes next call Jeffrey.
open. is line Your
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the it's, mean, trends optimism next the now. on advisor five And I increasing right months. get four I going headcount So great are enrollment over to
more to Is current based deliver have growth future much runway a as conditions? to How it close the how become is enrollment there versus just curious in capacity issue? to just to head it the at would pressing dependent does like, point advisor what strong point like, at upon productivity? to and needing much upon continue So what
Yes.
of sure going in think half enrollments, total enrollment behind half, we capacity -- by hiring areas, faculty, significant be first into all that year, but to And the new a we standpoint. make we total good counseling cetera. that growth. just obviously, I that enrollment areas, been will back need very enrollment, all full things we're growth positive so the from trails to the first new And expect includes then et time, that has closer next look to
of looking make people. so sure just that sure months So, make or at eight right we not you're number we're hiring, have the but we're hiring right the to people,
we've so, there, got runway of we think. plenty And
Got it.
I'm So, then addressing what's of going challenges to the in make sure pre-req on and want understanding Brian for hybrid. terms
potentially have out school for solving for of what theater standing GCU, pathways that [ph] call campus is have and talked the you're the then of So that where you are and at could through separate up students One on XXX there going for? coming about end they type and XX apprenticeship I hybrid partners. guess, also up two you programs that? degree of first you're that hybrid various prereq in high some your And GCU on a are the if the say And working an program, career you that could the location. so, challenges that existing one feed going or anything bachelor's piece different addressing changers There's for on? to correct? two the then, other into I the of can further on also second Am things addition
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all they options. are the two other nursing. can't our science XX there's other options say, college necessary high students on it community XX program cetera. And those in come attempt have what first to people good our areas, some earned it what we've eventually, we one to two to two have we really can do into the that. et a Most a or GCU at is first apply of stay have most pre XX country qualify a ad all, got campus. so given our into they And options courses on areas, bring producing sites. program And ABSN years who of Gen if if is of with the such a there's room into be first our an we'll to can at re-career so, and money nursing way that campus, finding years, that go also a impatient through And they overflow transportation of who opportunities, of and process, them here then the on those they offer partners. a for programs. high and there locations semester think are the earn in go we're of But board, out which they home Courses, to an colleges What lot lots nursing in over put student, of from people not for good job students to tell credit And not are there, in too while lot year take a you are community the in the offer over students our their qualified of want be willing hours while school saving first of three that get then and degrees students home, Ed good about in look
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coursework. you And can XX% success a are you that to immediately. be you're to who nursing relatively our students to terms services, building start there program, rather and in And courses hiring a get be prepared in a programs. finish semesters great of needs be greater for in And eight experience waiting can than we eight week so, in getting to than then then qualifying almost if have courses of just program. to better be we rate have providing such into soon one person those a out enter, support deal in faculty, of eventually a
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so program it's simple, in on they So with it that highly and very possible. as can can students work qualified are a get do get as the soon
that directly high And mixture Jeff of school. a Brian that's XXX are talked students, not one clarify on out those two in groups thing of to about. -- all not the They're all those
and of it. generally program Got market. there you seeing tailoring are that to employers behavior just programs? more which employer COVID the of employers clarification. on the in conversation is tight for channels the the like doing the differences employer Thanks makes better, labor have -- and more doing then I financial anywhere And that education, changing? Are or electrician, behavior for you terms just asking of apprenticeship conversation? last. out sense, contribution standing is in in it hear a Are you're up, coming sounds But
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able economy to and and going businesses, to over be in districts, be what to be human able understand their be to go next one, XX firms, five to, understand workforce the the and resource number hospitals, school our the are, in of technology what the changing then opinion, years better needs are You needs all York. New next mean, from grow can Illinois, in Arizona I and is the with that way respond it, at Talent their California, is the place is a XX the are it to to a feeling just able because to moving that they this own companies explode especially years, going premium such talent. now.
able them here they people paraprofessionals right them we and teachers, in serious the engineer districts shortage. electrical giant to we every hire, are come can electricians. there's us take part factory time licensed move in especially because produce. want from every when a then And thing time and for to built a full Doing a need to XXX and -- excited electrical being for we to Taiwanese so nursing. we teacher their they School same once week can be talked But have And chip now. they engineer, such
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that's of this part the of rejuvenation us. area a And big been so, for
the That's big solution. Thanks. also of Congrats. it a great validation your part for me. of That's
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quarter of call. have time our conference third appreciate the interest reached Canyon your and in We education. end Grand We
Backus. myself Dan have questions, contact please Thank you If you. still
Okay. Thank for your This you you the disconnect. program participation. and now concludes may
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