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Daniel Bachus | executive |
Brian Mueller | executive |
Jeffrey Silber | analyst |
Jeffrey Meuler | analyst |
Good day, and thank you for standing by. Welcome to the Q1 2024 Grand Canyon Education Inc. 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 first speaker today, Dan Bachus, Chief Executive Officer. Please go ahead.
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to up and objectives, And There highlight four. One, that new across year. started directly long-term the growth the labor has tied were for starts be our over first the GCU I ] [ but XXX to single These to high beginning stayed want New opportunities out that have focused than higher X.X% for new since the opportunities this, colleges. and prior hyper year reasons programs exist X.X% first students many prior market in the enrollment up for digits over labor in emphasis are quarter. the and of the of continues we today's on are the in students market. rolled quarter total programs, pandemic, of certificates XX account
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normal indications less desiring as the of including on exceed students. for than programs, GCU GCU of the being both nearly currently to ground years GCU's low well. the enrollment continues anticipate trends. early levels, a from trajectory on-campus growth very discovered will of point, GCU's traditional up based completing advantages, debt very students to upon campus four prior while We years attend and for its students GCU benefit academic GCU traditional percent XX% return low year-to-date to Because relevancy we traditional believe of online price based XXXX that average significant Second, fall number visits will in
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education for XXXX. million XX, have X.X% an In first in addition, XXXX. since that and of three six three the March months March revenue million has of enrollments year-over-year the per months its was quarter XX, XXXX, million XX,XXX to happened three an XXXX, primarily The numbers in as to Net XX.X% student $XX graduate million the is the revenue nurses service GCE XX.X% $XXX.X an margin same $XX.X all pre-licensure XXXX. the transaction for same of period the XX, the an XX.X% almost partners year-over-year. $X.XX. The Operating per income XX, compared helped and three has ended for XXXX. months period XXXX operating was was million, the was revenue million compared The compared the $XX.X months of increased first increase quarter March of assistance. for first increase GCE cited GCU in in for increase for for the to GAAP $XX of an ended XXXX, since the income provider. Service share X.X% income million for quarter $XX.X $XX.X GCE to March million or as to increase in $XXX.X occupational as the compared ended to due XXXX, for diluted ended years have therapist other increase The become and just I services GCU, in
upcoming diluted XXXX items for ended our turn XX, the like Dan months share to March XXXX quarter, income sheet on more and income color to the give about Bachus, guidance. to balance $X.XX. With as per would is other in statement, discuss little XXXX, that, As as a adjusted, CFO, I our over well it three first non-GAAP the talk changes to
The the the March have the Thanks, both for understanding months included fixed tax-affected our non-GAAP of of financial 'XX. exclude a months losses disposals of to time. on develop over amortization income Form million intangible amount filed 'XX XXXX investors allows March SEC, of the share with $X.X non-GAAP amounts Brian. ended tax-affected and three in XX, per performance of believe X-K quarters the diluted XXXX XXXX. We the company's meaningful and amount the million non-GAAP Included ended in assets asset XX, $X.X first the three income of we of and the information net and the more for non-GAAP
a majority timing per leap than earlier compared semester additional credits second also revenue per $X.X shifting semester as rates, tuition revenue higher prior share million ground of $X.X on one are in generate to in As the first room and spring GCU traditional their from grow XXXX revenue the quarter Revenue due and us impact per XXXX primarily the was years. in between of ancillary earn for the than generally these impacted and per on year-over-year of the we which to million to campus a agreements increase The the adjusted by revenue effect service higher positively additional they with at provide revenue these added revenue of than year. positively the the traditional continues the higher-than-expected service March the XXXX campus. student spring revenue to students accelerated XXXX student better-than-expected of student percentage, ABSN for as a higher quarter revenue and share of higher XX, GCU semester expectations XXXX quarter as compared the $X, in per student more $X.XX board in ended as have as other three increased programs. The in the revenues due on growth of basis, was the for in take by started average impacted Service day non-GAAP the to other slightly service of XXXX, The students students year and to per primarily income XXXX is prior students respectively. Surface hybrid revenue our significantly day the also enrollments. partners months the year. in XXXX is had diluted per first student
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head primarily day services increased later well. we hybrid These positively of opened costs the of will three margin travel campus XX, count March sites clients' off-campus increases, in related leap result and to compared The our due to We to nursing the as year in new and head the quarter continue shift our year XXXX new classroom a include five start to heavily locations related as sites and XX, both in at investments fees and sites partners the license invest by the technology XXXX. count to December clinical in date costs goals. the months growth open technology traditional meet both request shortage, ended Discover, as laboratory more XXXX, ended GCU's and two in XXXX, prior the first impacted additional to in as
the rate tax effective stock quarter increase rate of than first a first the taxable and compared prior tax of on impacted income in rate XX.X%. shares rate Our The in was guidance XX.X% was $XX.X refunds. We higher over cost forecasted due of primarily for first tax effective the primarily what vesting income XX.X% the year XXX,XXX at favorably approximately of XXXX our quarter to due excess quarter and stock higher slightly our XXXX XXXX, repurchased to to lower in is common by of the of of quarter XXXX the effective and a first was the million. the in quarter tax the tax was state in restricted the first of slightly benefit
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were some half estimates be growth deceleration the significantly significant the And in to did expected of objectives rate, to new lead given at remain from a has in and coming factors but growth but in Brian overall in the believe than The expected. were the and over comps, comps, XXXX. the improved results strong growth could total also XXXX, not There retention trends, rate rates higher throughout grow off XXXX much total growth mid-single-digit half the year. thus, in discussed, XXXX projections, our new are rates we enrollment these the difficult added we prior XXXX. year. the a second upside rates As new over growth only given Not appropriate. growth These are very enrollment of second online these growth online impact year-over-year enrollment enrollment difficult the rate being very our will in students outstanding but long-term is
after also total both due rate. break reentries, As which growth will the school pressure a decline a enrollment reminder, returning retention of XXXX seeing rate in anticipate a rates on students continued increase significant and of year-over-year to graduates growth we to a put in the
started fall for year-over-year greater will in year-over-year to more XX% and locations a as the comps result the the to growth. of for costs the the faculty is as revenue a Brian closed by of the single-digit significant contracts when to The start discussed due for that growth site see to XXXX much be summer grow offset rate rate discussed basis than XXXX changes for moderate difficult start, biller to student fall enrollment the pillar made quarter's acceleration to excluding growth closings As university earlier, we in high continues new growth being last no hybrid the in partially predicted longer is call. hybrid are on partners growth start a reimbursed the new and
side, made recall, in few growth we of years, the in partners. meet count past our our expenses you significant as expense investments primarily and head goals travel the On to
now Our remain quarter's XXXX to reasons see student to advanced pre-Covid growth to the to than profitability, are in pre-Covid. we I so similar growth, margin of growth. we that which to more remainder margin anticipate is profiles need get returned of have students sites below are back mature head The of count number see those back growing generally has Those far last including we sites slowed But call. to are mature admitting but pre-Covid given XXXX, experienced significantly sites as to to there expansion get what are one money newer continue historical generally levels. count. to back enrollment discussed that increases to hybrid rates the earlier challenges. continue that standing will revenue at back enrollment the greater back Those continue a not on during still generally they're and to to the earnings year-over-year We expense pillar lose categories
guidance. amount the three balances XXXX and adjusted income That at and to time in conservatively be in be estimating interest but environment reconciliation non-GAAP included income in departure will diluted raised projecting the to not interest assume adjusted rates will we guide of and not decline for have our EBITDA. In a adjusted interest of have cash are recorded original for locations the of tax rate thus, our Bridges' included G&A income the and of impact three do tax tax second continue similar to if estimates have which expense half our from to one our continue the in the XXXX at second tax We costs increase over in to estimates in XX.X%, last half. than XXXX in the state the taxes, Arizona, of rate in for XX.X% of half the lieu the believe XXXX higher decrease revenues be made, quarters effective effective grow will is state of previous rate income to These be rate continue rate effective to in that unchanged the quarter We next will income as year. our taxes in because and retirement. XXXX, his XX.X%, driving assume is in quarter, per related similar increase. offsite not of third a the outside thus in interest second a Dan share estimate contribution months will severance second but the XXXX The
stock corporate year, whereas of in other is shares price, the XX.X%, enterprise our less can evaluate, authorized than the which the company's anticipate free flow multiples repurchase purchasing basis, in appropriate continues companies remains rather than as for cash we value uses an stock the in the approximately flow shares first the that if social report. although average the Board S&P average same stock [ most EBITDA authorize it the roughly and stock XXX rise ] few at X.X%. Last, average responsibility flow on recent and yield a is as assumes enterprise are be education guidance EBITDA The XXXX. free the of ] than weighted XXXX in any, Board we as although X.X%, we cash undervalued free XX% sector, adjusted the of is it including there currently [ purchased the of yield Our is we of to based value to viewed believes the to raining less being issued the traded the of the amount cash adjusted by yield S&P the months ago, to over given rest metrics the comps. On few, the ratio
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Instructions] of Markets. question the comes BMO first of [Operator Our Capital Silber line Jeff from
is been about and are and a because for get fiasco enrolling [ what a enrollment impact to then broader before on seeing, We've they whole another potential you there a maybe this fall, to if know anything some so year college in ] you're about you ] anything? And lot question, seeing them delay applications. next enrolling? [ have if, the potentially little talk SaaS the some Can the a fall don't in hearing of students doing wait January, reason, bit
big on really bringing overwhelming. We're school a good high result put and students seniors campus. focus to in was we from around are year, campus XX% up country. high Well of the that this terms the seniors school visiting
And the still students were the delays, on campus the experiencing of and new we kind that the with delays enrollment hit kind application fall. registration numbers numbers in the targets so faster expected of to our we for faster
have That a the Just recently, with plan previously. number an to operational, in implemented we those fastest from site was all the who becoming receive to able offer thousands. contact weren't students us
able an to the who some operation going we contact idea it have right them in to to [ place interest costs a but massive had filled what so expressed got ], were out their now we weren't And as to fast give pretty those be. students
months July, And March. what in trying months January, the the make we of and to February to do so we're in weren't able now June up and May, of
sit see their just to will some out ground that still a made already are mind much can Early But lot because it they to that that information. make indications this open. year there be are get how interesting of have couldn't students we so are up And there any up
one, this be low-income gone have Number any past. question colleges I be students and things. students. think think in that, there's There less we'll will that. low-income go fall so don't X-year of to I that two there some the will about experience And
I be to that students. fact not kinds will by brought so eligible were had think campus the that that students offset of many we
but institutions But the bit months. think that is a And most we'll with I we'll will site was -- make fact summer that is going on we're not those unfortunate up and unknown. The think that's will make the because the with the most it the all enrollment so students that bad, more what's also cell up institutions line it that's operational, those we eligible ] for little the so come students. still too happened. impacted made most students we'll Bottom the at I with in is new the traditional than shortage we'll way And campus out visitations ground more other to because that students. of and believe [indiscernible] first-generation thing campus effort far those since the because than make up make by with up but [ target our low-income Pell-eligible for -- I hit have end
you of greater I any forgive the And missed past where remarks, strength program specific me, were there others areas would some call opening in the out but than quarter?
an From online standpoint, Yes.
our a outstanding. have education absolutely program area going that is in We
XX New to she's degree in professionals and two her to for country. We last speak. entered and became teaching growth retired, Jersey public people of prayer that New we're math their was Jersey programs, a and speak, We and just believe, teacher achieve strategy. eighth a earned in have He program degree contracts to Public back one Laureate our of these back now country officer And It's of graders of New we schools, Jersey one a I teachers. a part XX [indiscernible] the weeks. that we with unique detective actually those And Jersey a the our graduations our school had in of school. in a all program professional the was licensed delivered in significant one years become successful districts those over pair public graduations, helping most ] two where [ New School students District, she licensed police had
like that be students now public X,XXX to significant have in We school system. was a the contributor. teachers preparing And that
want in sites. one way preparing we Another to nurses. taking there that's that was That's to X,XXX people that that our prepared one efficient get enough not them There's an no be ABSN those to it, have areas. especially amazing It's the science phenomenon now of students do prerequisite place. taking in aren't be to courses,
rate. around success country the last of has those students another couple been from so to And our up to years online opening significant the contributor courses
comes of next Our Meuler question Jeff from line the of Baird.
pillar, [indiscernible] that couldn't better than programs advanced partner [ were sounds Or ]. that starts It expecting like quarter. better now are end said in you better were hybrid students? Is your trends last just Just new [indiscernible]. the demand the your accepting you -- seeing market?
starts it our with Well, sites. GCU
just doing well. GCU Our so sites are hybrid
the healthy opening is meeting the capacity very with really that GCU has those and have early GCE of they're partnership and maximum sites tremendously. We
not capability the one to work are to that nurse. making partners that becoming necessary, students degree. they or years or They they're through efficiently And accept of university have be college, two -- that and and the that students changes other partnership one have to the [indiscernible] watching are community these of are open becoming completed so have baccalaureate typically, they we a have need Our how making primary love college nurse. XX would credits are been they being
students students. When attended finish of our way which now is earn a a students of taking to program courses That's just now changed those science earn lot program accumulated efficient partners those to more program, that to in to don't ABSN The the sending weren't made way through is a many that's partner fact learning it debt, those so baccalaureate prerequisite credits, debilitating the its prospective of you taking the people. XX we're their order necessary And XX them is happening those those have all for the young in everything. thought of institutions most successful a be have that best going what's colleges, credits. way way GCU's debt. efficient is are in and ABSN And or a lot an with an they've and for community we've program. they credits thought And debt now, to person
caused really future really, the hybrid are is the have programs and the And really reacceleration that of the those two so things bright at point. this
guess you remained of guess, sites ], that I targeted mature our sort mentioned relatedly [ I of level. kind had below
Now other actions to of need accepting return just sort that is is full it them be to that needs their Or students, taken? that there to time they're for to advancing be enrollment? there
students, when time the it's prepared higher, ] economy into It's was just [ baccalaureate completed baccalaureate and were time. No, unemployment when people a there They was because degrees. different, that of recareering lot nursing. the were in had interested
of And so science courses. they needed GenEd in less a
positive it these students is target those time very, students from shrunk but away to takes that moving the target just for other very a to the earn and necessary Moving eligible. thing, credits because to get
We prerequisites eligible. that's why prerequisite in important. be the those going waterfall to where We one is one each so as so that their courses And know is and students grow. each can watch complete
And so it's time. matter just of a
have that ready the but we've it the ABSN younger a got credits the to confidence lot of necessary do learning We strategy right for for get and methodology, right earn does and take to the students those now time program. the them
it just time. is So
your interest Education. Grand time reached first in our have Canyon quarter of end and We appreciate We call. the conference
myself, contact please Dan questions, have still you you. If Thank Bachus.
your in the This for right. conference. All conclude Thank participation you does today's program.
disconnect. now may You
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