Earnings call transcript Q2 2023

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Operator

Good day, and thank you for standing by. Welcome to the Second Quarter 2023 Grand Canyon Education Earnings Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Dan Bachus, Chief Financial Officer. ahead. go Please

Daniel Bachus

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

will to And over with call I turn that, the Brian.

Brian Mueller

on plunge million for new guidance is pushing consensus. XXXX, Grand National The year Education's to earnings dropped in-person from exceeding American producing following, care Author labor X% were the very graduates colleges Good says numbers, and data technology." to also after afternoon, GCE expectations economists Conference exceeding to returning joining by according enrollments retention to in titled a crisis, adjusted steepest shortage "Nationwide XX% labor slide fields recently dire. over the Canyon approximately college Fiscal college Magazine that worst the from and with the greater-than-expected in according producing Second even article going an Bureau ever could Statistics. midpoint the Labor estimates appeared -- by in health Year revenue impact shortages the that per college recorded. Binkley $X.XX the good enrollment could beat at An producing Clearinghouse. record, U.S. had to worsen the quarter, say declines $X.X diluted share enrollments Economic of in XXXX from in and Student be is XXXX Call. XXXX starts rate you with to prior thank Quarter since classes, Fewer undergraduate Collin information Fortune into

Education review and spite to partners XX that Canyon declines Grand and university deliver will experiencing for are I the growth its we continue platforms, the will overall X the use as significant higher reasons I market, growth explain in in of education.

University. the First, Canyon campus at online Grand

enrollment were year quarter out since the of students colleges and These market X tied in approximately of new reasons started the today's the starts but labor rolled are that for positive many this, we There have the hyper-focused prior of in accounted XX% programs second opportunities new the pandemic opportunities stayed and GCU. have at programs, certificates quarter. students up XX that to one, New growth exist directly emphases the and beginning on highlight to labor at X. second for Number want market over XX.X% the total has again to for I returned and are X.X%. across

points, they public directly to the on starts In the done. which have work. tuition pandemic Number came by the focused responding industries the the to safety of of are averaged we GCU care, the military. second resisted education, the Number increases shortages. employers up during entering. workforce with two, the the their XXXX to This technology, improve approximately number X% from three, the enrollments soar work since quarter, second new XX% to the offered. of to and to the year. reduce of of pandemic four, many went that growth per institutions was continue health tuition, retention the universities of continues net during One Online has effort which declining because students have programs of students raising quarter the we programs of basis relevancy in address that believe responses Number has XX

GCU students traditional to trend higher a to. to This Second more is ground inclined a students. students for to platform, campus work home adult becoming from Working do the is are we now home. from for education as uniquely that well. There are trend here traditional-aged positioned and clear respond post-pandemic

projecting or and than programs with the greater campus to XX,XXX traditional-aged XX,XXX than to but home. for the coming GCU approximately been from September. ground April new number, X,XXX between eventually program entire students new come for XX,XXX and campus It of have be We greater fall will students the may campus online X,XXX do students GCU and students These the between may starting XXXX.

second our X,XXX traditional-aged them about slightly revenue The at quarter impact They the auxiliary approximately due starts but in offset increased room, to students, in board by other counting campus. and increase currently to online online are in will numbers. our greater but be we revenue than of overall accounted for students higher-than-expected are XX% the ground counts. students, campus This new attributed X% student our

X.X% in Education's campus quarter. second in Canyon Grand year-over-year had Third, the a hybrid enrollment decline of

corner. definitely However, turning the is hybrid campus the

XXXX up projecting expect in growth high-single-digits year-over-year, and the fall the even enrollments be we now Spring in rate be higher. We mid- to are new to to

very Number efficient debt, from up very of degrees, programs a interested accumulated for students partners our careers to students completed year making of ABSN There access created an having are that earn an these These going younger the change. they project this faculty, responded opportunities world to two can made fall work. every Students courses main and XX/X other some taught the of nursing and academic admitting live partially could a advanced and by to one but the that experienced prerequisite be in ABSN are didn't way start in low, deal are courses almost September active been X have one, in there's anywhere students have courses the reasons science intelligence in have online in but from standing course support, week. science affordable, tremendous weeks. artificial or gen-ed interested delivered access by sizes great are is GCU or will are tutoring. ago. with only XX, of provide amount all class process one this. courses in including the Students This so

courses, these X,XXX already implemented students. we Since have we enrolled

and rate report waterfall one us start when of that prerequisite students who know how at and progressing students eligible through our success We XX%, rate sites. ABSN and on to get programs the have have to to ABSN the the programs. XX%. first-time a efficient academically is eligible now will approximately extremely pass our exam NCLEX students be enter courses prepared to their enter an are allows way they of remains successfully We The

are This seeing year, expect and semester. companies the start program the in of X.X school look runs our experiencing the in Canyon electrician same quarter at we that from enrollments consists The upcoming third we XXXX-'XX that XX courses area X school platform, labor we program. hiring shortages started for it students and credit XXX Fourth Workforce there. are will results and and as XX program results. get University. Development at will We excited successfully in program about partnership with are pre-apprenticeship students believe graduates. completed students better an the In year, Grand positive the Center in

of school a with receive concept At around for fall, students. talking in are also for thousands that semester, In years some that this XX successfully out, a been employment enrollments XX,XXX GCE others. small and to will program when the hours manufacturing the also industries end there service is and start Social then Arizona's care I Grand declining fear crisis. teachers College created hours. is that since provider, a they program. a in the the in Sciences, expect students work teacher has a at XX,XXX national scale GCU and college in X,XXX out These work of there a work manufacturing eligible as the health about nurses. shortages students the of engineering as campus higher In of it pre-licensure certificate XX certificate time industry. project. following: This a country. for is time, on for have Once X we doing parts this professions, to time companies where and week a students Arizona. shortages across become also the then exists the helped in in accomplish future to proved education with education, nurses has key go huge counseling business work, social of including including will this employee XXX,XXX a and a at GCU's XX,XXX started running add shortage in nursing manufacturing in and GCU has partners we in will labor graduate paid facility has result huge XX GCE the first-time fast-growing a shortages. University manufacturing major XX,XXX its when growing helped in be Humanities have assisting including Canyon

the XXXX. an increase second of revenue income revenue Operating to and X Business compared per has $X.X due The the X.X% the numbers just College June was Honors and has and and the the XXXX, was months for cited the for an period in X,XXX in for $XX.X margin XX, Theology of become I of XX,XXX graduates. ended to schools XXXX, was grown in in increase GCE XX, compared have an as the of become in Science, institution Technology also become produced X increase $XXX.X XXX% Service provider. million one primarily months has that have revenue service largest has the increase of million, Engineering The XX.X% an million by The College of compared or for million and X.X%, to same a in ended as The period year-over-year. since to College, The of for $XX.X student same continued happened XXXX. the operating America to XXXX. year-over-year grow. services nonprofit XX.X% and in years million of has June College College XXXX, for an GCU graduates. of GCU million, X was all increase $XXX.X quarter provided quarter second business education Doctoral The $XX.X enrollments

period second of June income XXXX Net to million for XX.X% to income million ended the increased same quarter share months XXXX, $XX.X for XX, $XX for is $X.XX. the the diluted X in GAAP XXXX. compared per

non-GAAP XX, for $X.XX. months As income X diluted is the per ended XXXX, June share adjusted,

Daniel Bachus

is tax-affected $X.X expectation. and with due XXXX meaningful have Included rate Adjusted, The in our for the at amounts quarters to XXXX. of we fixed and share XX, the develop decline non-GAAP the of diluted the mature basis higher sites XXXX on the intangible losses non-GAAP impacted were timing the second higher-than-expected and of expectations non-GAAP time. Brian. revenue tax-affected over net hybrid amortization XXXX. some the a and per GCU the on our quarter of being higher months $X.XX, disposal exclude non-GAAP site the allows We income than of enrollment XXXX assets the the for the June for SEC, is more included second and million information a openings GCU. income The Hybrid million performance X share ancillary XXXX, the in amount to $X.X months revenues our challenges company's and Thanks, of the June filed and enrollment ended Form of X both with X-K months due amount X growth XX, the financial respectively. diluted the revenues XXXX the discussed. June ended and year-over-year per to enrollments believe ended asset income Service at year-over-year of line investors the to $X.XX of and in understanding previously due XX, XXXX in non-GAAP was of

such enrollments earn Service higher generally revenue in agreements the ancillary and student to sites. to other the a service for on student than revenue per impact accelerated XXXX revenue continues they're a the traditional the laboratory traditional first student these we of quarter basis, have year-over-year years campus higher Spring to in the in of impacted as student rates, year. per grow per campus' on the share on semester, the other partners revenues the student was generates year-over-year of GCU the hybrid as to ABSN programs. student to percentage, quarter take majority is quarter shifted in which compared between room, revenue semester GCU per off-campus as growth us with more students per higher average and also per students higher the revenue second students due primarily in revenue at due a from board $X.X Revenue by and significantly the provide million increase per tuition The second revenue the last higher of credits their a positively classroom the that differences and timing

higher due the margin expectations, was revenue. primarily operating our than Our to higher-than-expected

on counseling prior meet primarily discussed we aggressively which flat and our future is I growth, head in to in As earnings had since compensation expected costs, been have partners' hiring, driving quarters' count which calls, been support. increased March mostly services XXXX

than year. in increase year-over-year travel levels and for as amounts employee the lower were in those benefits, in also prior significantly pre-COVID We significant plan a

at the our and costs spending in generally line The expectations. classroom clinical shortage. has increased off-campus due for plan nursing sites also with to laboratory remained We

rate XX.X% second XX.X% of guidance XX.X%. and effective second quarter XXXX was compared the XXXX of our in the tax of for Our quarter to

second of some tax tax XXX,XXX our in state quarter a favorably common second of at The another since million income shares repurchased XXXX was quarter cost XXXX. of resolution We've XXX,XXX XX, approximately XXXX $XX.X stock impacted repurchased of audit. by effective the the were shares June and rate

of We continue from Board share using and authorization. we've years its the flows XXXX from future past our as intend to have of cash proceeds than significant The the share portion the $XXX the operations under remaining secured as utilized today a repayment the XXXX million available repurchase company to in and of all X but shares, less its note during be years. in repurchases will repurchase

CapEx was or short-term flows. June Total Turning CapEx cash XX, to including new and $X cash investments unrestricted in of for million of and approximately and XXXX, sites, quarter the balance were second service off-campus classroom sheet the XXXX GCE $XXX.X on X.X% million. revenue. laboratory

XXXX at provided million to in have CapEx We like for to X-K be million. XXXX and continue similar updated the to I'd on we color to expect $XX between our $XX provide today. filed guidance

reminder, outlook diluted adjust income the adjusted income per GAAP the is to share filed income have we share. that non-GAAP section the to per our a As X-K GAAP net the as in income today guidance and diluted of and with adjusted provided net amounts as components non-GAAP

section by guidance included income filed requested a diluted investors, non-GAAP share In of as we X-K the addition, as have estimates. per adjusted the number today in of our

have full quarter We year the XXXX include updated guidance second to revenue and beats. earnings

the in fourth slightly for discuss narrowed in we and quarter. detail will and ranges guidance I in more and As in a revenue the minute, the quarter raised lowered midpoint the third at margin have quarters third and have the operating revenue fourth it

half XXXX last a half the and expenses the has Excluding resulted of midpoint, July, the in -- income, rate tax the the state a the shares in increase increase second at income in other outstanding at contribution weighted $X.XX in EPS midpoint the taxes $X.XX second which full estimated the amounts lieu lowered of and paid estimates have X for in year and from we for last at quarters, estimates of quarter EPS from EPS for of full have each estimates average updated we $X.XX original year, year estimates. increase XXXX we estimates midpoint provided in an

than earlier, should mentioned the our tuition result higher Brian and to second As higher-than-expected both enrollment original we revenue fourth in in anticipate which in be quarters. the total third half estimates,

calls we which ancillary and impacted share but to The all discussed both but also revenues will going hybrid of reimburse and at contract due hybrid hybrid certain with by quarter all some XXXX, location and lower on of revenues at agreed as than discussed, term. have GCU the prior for Brian effect changes be other opening some much and slightly as longer to which negatively a location that The and half second the are revenue costs reduce third half the will quarters, anticipate fourth they offset is second our These result, contractual clients revenues in of revenue as go on will fourth into help the into the no of start in percentage. California exceeding partners, the -- bigger items our will GCU, impact the delay the quarter lower third effect slightly revenue fall impact in revenues. the of the impact we reduction the have Southern expectations them a

new Online should from rates half second above rate in the decline XXXX. the growth first the growth but XXXX, due to enrollment of difficult of our half the will more long-term remain much comps, in growth objectives

changes expense half net third of rate credit, contribution tax the income for year, in expenses on California decreases delayed in Brian the the second the July mid- quarter XXXX. accelerate and The single-digits second to does effective associated rate but tax the contributions in enrollment should in the mentioned, of high of lieu state the second even growth third paid have material in quarter. and opening Other no in of the and with fall the reduction has As roughly more expectations increase expense in quarter income, taxes there impact than be the new semester. half in should are XXXX, G&A and Spring a been $X.X the no of XX% lieu hybrid in the and semester the XX% million taxes the contract in in our fourth income thus changes, in Southern half in the state

tax XXXX, XXXX of to As the X XXXX we the fourth for XX.X% received a of the in in and lowered this quarter. quarter of quarter XX.X% have result and refund last of effective third our the a in rate third quarters tax

roughly it believes yield ratio shares the metrics on enterprise adjusted Our assumes stock amount the over at sector, uses multiples as adjusted being of free appropriate if remaining is the the weighted companies, by can of enterprise any, undervalued same repurchase currently evenly other XX, are recent value an the remains shares, basis, purchase year. the our trading S&P the Board for and The X.X%, yield cash EBITDA flow comps. average to continues free the free few, of the yield which value to we authorized cash the including the average is of XX.X%, in we to less most to average rather flow as the guidance than be approximately authorize of although the XXX stock based flow S&P Board rest of it education evaluate, that the X.X%. than the cash and viewed there company's whereas as of On EBITDA is

I to call the will answer turn the moderator now we that over questions. so can

Operator

Instructions] [Operator

question Jeffrey first Our Baird. Meuler comes from with

Jeffrey Meuler

you. thank Yes,

a guidance better just the structure sizing in make stand can changes. little to with costs, of the that roughly bit the Can of the we the apples-to-apples just like, around assess changes more you can us help maybe Just -- contract reimbursed we some so other before the impact?

Daniel Bachus

Yes. the When the it's the the opening approximately $X impacts, and unexpected California, and change revenue of you in delayed take a million -- reduction including impacts expense. Southern contract

Jeffrey Meuler

around dynamic And the the instead start electing Okay. online to campus. traditional-aged on Brian, students of the

impact Or expansion the few not Just mostly how plans thinking the And a of anything does next the for you perspective, how can students? the Like the from university non-Arizona this is say campus students? with case? years? -- dynamic that is it over about you're about geography then

Brian Mueller

talked home, And the really about There of what's making middle-class They're out good to that college jobs impacted lot educate of That's are to high to their definitely a money, are school interesting as home. families. there home, -- going has It's hour. $XX, of Yes. go to part-time is closer because America an I kids part be on. to to to from they have students people students. very really $XX inflation it closer desire and work changing, going

they're panic deals cost there's and their they relationships see talk kinds going attractive of they incredible degree to able something students to X they or I is -- structure, to from a second expense out an that about, and maintain their out of structure, when becomes X with offering didn't which so things, unless be deals. program years, can And those that the lot finish universities. though keep incredible those there give have friendships third not part-time they're to church their making in they're job, again There's that and year. significantly and opportunity them. Deals maybe a And change fourth else home happening

freshman year. going be interesting And of the to get out to got about second happens not so going find when semester see to through it's they their deal students year their halfway what they're next the second year,

into offer fall as result didn't temptation. have a We very have some students their that specific otherwise student that's is, we missed We're deal point very to gotten. what so average a the of on that may We grade transparent. out we and that, would

This is long is last? don't economy a know. Arizona's that fast. how attractive place to to growing for of be is reasons. So so an I such lot going

are graduating Our XX% almost of in with extremely our students They're are graduating debt. X programs less years. relevant.

things The we finished which we'll students We've How do the when the construction are being what one going good If our level thing X And We'll this will we on an start a this this for where very home. way through out we how of this on, period is we'll that panic can year. it see get residence this year. next uniquely continue offering so be year, is next successful positioned. the year. will time we is, opportunity impact continues building to halls us -- do following been from of campus? build

just see X goes. And then thing of And we'll instead X. just we'll this construct so how

doing thing this land can we that a students. somewhere we And now. thing important We've been to to close The XX,XXX decade to have for out this build build time. just is in

This a from hall expense little take which front cash, a CapEx out some now We're bit and residence very from standpoint. we're of a thing. will more off and perspective. the classroom good right laboratory accumulate them so a GCU to allow out pressure even And in is

And so way which trend positioned really it. we're to of goes regardless forward, to I respond going this think

filling are our created I hybrid ago. in We're over specifically, how We excited In to courses. the the courses courses solid addition, approximately spots we we've in we're terms have fill -- can't in to all to into as going add grow, only about them we're students able course, to going spots to continue just a students trend And and continue locations. a those to campuses. XX our how the estimate current those in can't XX already continue going that's X,XXX of those XX% capacity And our at we're locations. very with be numbers have pre-req to I and look on rolled those out And grow, real year we locations. got going those pre-req of quickly

good and significantly graduates campus because such need to going on such than success we those either students. our or in students dire careers they in are so students is revenue those -- starting since once get our those online students rate XX% they're because really the student there, higher are per be And ground a have

And positioned of extremely next of so the we're think regardless thing years. we how goes -- couple we're in well this

Jeffrey Meuler

a sales same-store is hybrid, fall acceleration the don't about number. that the And was on Spring I entirely the and in pre-req next starts this think program? expected

traditional play change the of the sort in or launches career trends any do campus change well? in And into as new student that So demand?

Brian Mueller

The ABSN really there have high one, the $XX,XXX into college to leave now number students path our understand to it three more took just -- good to job where $XX,XXX that's have -- bit from are that or really the a clear some have available backed in a make a is partner community for people It's $XX,XXX- little from that. so the changed. a students the or money them the for Number who program, completed degrees $XX,XXX-a-year that away is, students decision our low now of to younger excitement spend while market school opportunity or that of and unemployment experience, market a that institutions lot the and an of to things. know students that partners area. graduated are But is

we the what now you're only and And students, resisting part that's in that third so to advanced fact that we fourth increase see call have quarter. going partner been of is one those standard who the

So that's one thing.

is thing the was a they're nurse needs ask send affordable, them advice would can of That to into people they there changed a complete borrowing how completely and come would college anatomy, the most Students They're from major knowing second the in university could The chemistry, courses -- prerequisites. a X-week first what bottleneck. to definitely them were where priced those -- very physiology, biology, semester, et not That's complete world. they away access for designed was are community then money you specifically which cetera, fall still you the no maybe anywhere courses, know months and start would around state about and months can are whether a which get these have And that very or fact program. in The had courses. X X them. now they money going months because or the into we not students away. Spring picture to semester, them not for X was those or the borrowing for look things to they're

program, to them. deal only from to able borrow Nursing the make, complete is courses XX job openings, decision XX and away their their to that. they're see Once And the months and and for be Bachelor going the better the all so they're to a Science to it's they finish now them, of really of much given easy pay money, because

major eliminated eliminated a And -- we've I we have think so I bottleneck. major know a

they out excited students there they're through. counselors because look way refer Our are they have to when a these how courses, the all very into doing

for X they're So which for at example, Student be X to They've X. semester take. our got courses eligible, has X completed go, means partner institutions. going to that of They've one fall they know the to

the now back major And we should and here company. second things much brighter that a picture get the be thought so reason they from where when first we we'd to would and have that's accelerate bought

Operator

last Silber Our Jeff from BMO. with question comes

Ryan Griffin

upside Jeff. the some quarter, Ryan we And conversion Hey, like you funnel explain spoke? quarter. the out is during from issues called this of a had with had looks drove Can campus. Last in on outlook, your the just improved time for given what that the you ground for the lot it some last

Daniel Bachus

side? the the or online ground side On

Ryan Griffin

the campus. ground On

Brian Mueller

spoke, to real Since do want difference had the only we that last Canyon Grand who time certain is to the online. students want percentage of we come to it that a

have second and may on they And we we're going go that their would semester come at love they off caused that first I'm that we the has exceed say, to pressures to they campus. it's continued may students about and the that category online." going or experiencing the the in would to program. experience are in coursework, But families put year. of inflationary thought into so being hold I'm But begin going come to our your certain each of number to students So

Inflation give have lot from just this that. lot to and going home, are they happen, a a is from People a play. with because comfortable people middle-class But when from with America I definitely a So middle-class to families inflation. college is flexibility there's mean going changed very real for educating things. universities ground their of working right in enrollment kids more in don't unlike our what's getting like home. things options, home, that's the changing comfortable they big campus have then, declining of now and becoming on where people changes

in have students students, have because middle-class work We a the numbers play. our socioeconomic of we're doing upper-middle-class upper-class we're strata, inflationary we and of come there's students and on that significant significant a families. the pressure those mainly And of amount neighborhood, from lower but

and conservative they're they're approaches off. taking so And holding more

I since the as Now kind the anticipate talked, that other didn't making. making the schools thing is that's we time deals of changed, we said they're last

We change don't and has private and your that governments, been criteria, criteria. that amount getting transparent make determines really, any have specific that universities to historically It's And and from very all to scholarship really me. we're deals owe. compared is, is and over country. universities. very of Still sense your that good. know subsidies are State We One to other around don't you our the extremely what objective. GPA declining there issues their really what happening that state they're make amount is as started that's

us and X, flexibility see. change can in Either great I way, got make their of options, unless so to a because think X, different know they can place. a And offer puts structure expense ability those we'll I X don't in they our lot the we've which deals years significantly, students of

Ryan Griffin

development. Okay. and apprenticeship And then of those the last some just on workforce the pillar,

highlighted with? electricians Just are? term, think I big think what and those thinking you additionally, make you corporates they think maybe sense the longer how down do you could before. how partner And line to meaningful be do might other

Brian Mueller

we'll But with our classrooms now XX,XXX campus serve going But out can the it's be brand-new late empty the throughout financials, so it building the laboratories afternoons feet meaningful even space have we're -- to evenings. it XXX,XXX work meaningful. Well, we of engineering and meaningful square ranked very in and doing. to that in it's our people. country. We've in got How XXth said, campus. We've We're got the terms of extremely see.

a wasn't We with mainly kids needed -- math by we couple happen. to I of our to employers with so the for electricians, that spend to expensive to in things. the classrooms am the these teach it And make CapEx needed of that in program ability a create whiteboards. surprised One, programs, there lot for wasn't Southwest, the pre-apprenticeship very

me. That's that was to so And scalable. extremely surprising

The machinist back to is thing is manufacturing back equally Arizona. to as exciting because coming really coming country. It's this really

space first They their we've we did well paid for XX I utilities. is gave the brought machines. year our free, machines. -- And them so for bought idea that the we as in for exciting. a -- of X them -- me, students the potential now and loaned they to A us They $X.X -- they scale really more bought couple so purchased the business did former to that We million.

out where actually job. or going doing running business we so like Honeywell. to get are business they're we're And And a parts. to selling fantastic They're parts the the a people producing

that to to going learn we're that and going them a school of and the has able so tremendous high into recent have school being we And thing through they're bring graduates kind environment potential to while of amount finance profits make. can that

gave as that the in this component us wanted a program, going home They didn't heard lower-incomes us we it. the $XXX,XXX end were ride $XXX,XXX shocked. It kids extremely meantime, said -- what of beginning a about of is Well, this need $XXX,XXX, of all year, towards get be to year. come it business? money." jobs. we'll the spend the it the chance or become $XXX,XXX middle-class state And take really meaningful so the into And the spent of We put they but meaningful next could but goes "This a it. spend Maricopa check not thing. they it's to we the we on. the Arizona, and from at it, they phases all County to financial out the be. In We said, didn't But just the Could took to in standpoint of we're of People $XXX,XXX. offering -- just

one and they And through you, a having right phases, They're we many we'll got in forward. project and and that's kids, it's specific how process semester tied the to beginning work. students the how into can companies a when are these entire I produce bring they graduations we for Arizona. us a experience we're their a updating need, job they're but developing pretty whole move in many of as so for us, they so families. machinists It's amazing electricians the directly And you those so tell it's keep to new need, move telling to

Ryan Griffin

hear. regulatory out the Anything you on with otherwise? or any call then or then That's talks to just me. commentary last for be other any one on Ed color And Department great And having to the employment there? of front, whether might gainful it's

Brian Mueller

the for same us. really. No, It's not

with continues very, programs, XX/XX down. Graduation so are an the Gainful calculation our last teachers low local have five state first-time teachers metrics with the to education representatives. Our potentially be think to go very employment, we on would rates. good. we're default ridiculous cohort working our and that in would produced -- don't rates, XX,XXX issue next I that stop years. first-time that. We in

of talking thing. of which the kinds back have They're bringing that. same maybe if we they do, same no about with the it's most rules, some the So for part, trouble

impact XX.X% of in. the other. the love are metrics good. in going they're way Hopefully, on. just does idea Ed. meantime, what's impact not one Our we'll very our growth. no They Department doesn't it students have resolved But thing get absolutely or our programs this with the that of the It

And so really from on standpoint. that no, to update nothing you

Daniel Bachus

time end We We have our call. Grand reached of second conference quarter and Education. the in appreciate your Canyon interest

your If please for time. myself, Bachus. Dan have much very questions, you contact still Thank you

Operator

and call. Thank concludes the disconnect. you may for participating, conference you This you. Thank now

Grand Canyon Education (LOPE) 3 Aug 232023 Q2 Earnings call transcript