ASPU - Earnings call transcript Q4 2019

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Operator

Good afternoon, and welcome to Aspen Group's Fiscal Year 2019 Fourth Quarter Earnings Call. Please note that the company's remarks made during this call, including answers to questions, include forward-looking statements, which are subject to various risks and uncertainties. These include statements relating to future student enrollments and bookings, campus growth and revenue forecasts, metrics and attrition rates, revenue growth, including Q1 improvements to Aspen University's core nursing program, USU's operating leverage trends, expectations from USU's FNP monthly payment plan changes, expected G&A trends, expected improvements in adjusted EBITDA and operating cash for fiscal year 2021 and our liquidity.

Actual results may differ materially from the results predicted and reported. Results should not be considered as an indication of future performance. issued and filings to Exchange with in press risks contained business Commission, of the its in the release discussion uncertainties Aspen's related is mentioned A afternoon. this Securities and

result during -- any will disclaims measures. discuss the non-GAAP like any as I'd to Aspen and of are of you this financial Group developments. that obligation future remind company EBITDA EBITDA course forward-looking which adjusted update statements EBITDA, a the to call, also conference

performance, to press transcription the today. the company's by comparable the for financial measures in be direct of company about provided GAAP call website. available tables one talking In a reconciliation conference There will the release year most this company's are at the in issued the

over Group's the Mathews, Michael Officer. Executive turn Chairman Chief I'll Aspen Now call and to

Michael Mathews

results those then results will announcement plans call company's Sevely then Joe I results year and our first results. make in afternoon. our begin review Good at USU. spending financial will marketing by monthly will bookings, to strategy equate recap discussing the of our campus full related today enrollment terms with pre-licensure and payment business the a of follow BSN of a the and strategic I

pre-licensure As Phoenix you BSN our know, we last launched first in campus July.

of the operation So XXX year program. nearly fiscal delivered active In these of it's enrollments, includes in XXX we a the nearly in XX, and in been we’ve end May, first the enrollments up students year. for on XX registered had months, as April which

modeling withdrawn That's only than had attrition students core the less To four the XXX a program, comfortable first-year entered other XX% are Of the opening, so students final X% and final we're prerequisite in for XXX program cohort. attrition students thus we've the phase and the very far. program. in core date, two-year this the have rate XXX, XXX are since only two-year of

University the per approximately final delivers two-year student metrics core the of $XX,XXX. program important are because These revenues

should LTV XX% rate at cohort two-year of $XX,XXX over of average this on that cohort. graduate final say So program a for that delivers core

cohort college complete other phase the some are before The These of the credits required with the is that two-year year total students first entering and prerequisite typically of program XX-first-year core to the enter final the enter the program. credits program. students

at year the We complete enter students first predicting their first-year are matriculation -- XX of comfortable program. core their this two-third that two-year rate successfully point and first credit a thereby final

are online the Aspen a ratio just $XX,XXX BSN you students is in final LTV enrollment Based we weighted traditional of able to will, on over students, LTV a prerequisite confirm of average to This the for $XX,XXX XX/XX per ARPU this of nursing now user than core approximately $X,XXX. ARPU program. for students pre-licensure or, program per two-year enrollment our this four average revenue if higher times business or per

of revenue. In spent the for metrics cost to earn this should we're in focus nearly our approximately in we most These addition program for capital that BSN that operating to marketing, projecting enrollment $XX a ARPU, meaning $XXX, this pre-licensure is every average of expansion date business. to dollar suggest of Xx

for targeting open two the per indeed year we're to plan in starting five This campuses our calendar is as XXXX years. next

full this that operation. we all Once reach to these maturity, So, projecting expect we're business the alone be will a XX $XXX of campuses have campuses year as reach XX XXXX, million we calendar over end business. in

analysis earnings follow IR is X, along results, download review as XXXX enrollment free fiscal comparing for which to and available discuss year slides what feel our bookings. fiscal for Please XXXX our recent year is on to equates on to like and available this that I'd Next, site incremental X aspu.com. to

XXXX year slide fiscal year go total on was X. let's for back The X,XXX. number to the enrollments So

of LTV per You program, vast were Aspen's traditional can online delivers which in $X,XXX nursing majority enrollment. of enrollments that see an the

bookings So million $X.X primarily means our in bookings XXXX, $XX.X in another in million unit the Doctoral total Aspen FNP acquisition. in months fiscal we year XXXX unit bookings $X delivered the adding million, that of unit fiscal in million. company of $XX.X following five our for bookings of USU, the during That while delivered of

compare that XXXX. fiscal let's Okay, year with

LTV; basis As in core made units are for reasons. decision the to One, Online relatively nursing significantly online on Aspen a on hold focus than growth a long-term to we income Nursing revenues net results conscious we the and unit Aspen the our two for over our decided nursing other business previously, discussed online higher higher key units than spending and flat three with Aspen two, LTVs spending programs. University we the the ARPU year-over-year entire in

year Consequently, fiscal in unit, million bookings. in that note delivered enrollments we which Online $XX.X XXXX X,XXX of our equates to Aspen Nursing

delivered USU unit Doctoral to bookings. which enrolls Aspen million $X.X enrollments, bookings. predominantly program the X,XXX of million through of FNP a to $XX.X total of delivered enrollments equating addition, XXX equates In

delivered total program million. bookings BSN XXX $XX enrollments pre-licensure for Aspen's of Finally,

So, enrollments the for million translates company $XX.X delivered bookings. of a XXXX, which to fiscal total year of X,XXX

a So, to on equates X, year-over-year slide XX% rose X,XXX enrollment from increase to enrollments X,XXX, recap total to which year-over-year.

rose XX% our increase $XX.X year-over-year directed why by the yet a XX% million growing exclusively year-over-year. enrollment units. new should growth LTV to a towards to now bookings year-over-year million, businesses, ARPU clear growth to in was XX% increase by enrollments these from we It translates $XX.X the because be bookings achieving However, capital higher directed XX% business

what fiscal year our to enrollment to that equates That bookings. in leads for and XXXX me projections

will total year-over-year of XXXX. year-over-year approximately million approximately fiscal we which deliver approximately growth for XX%, of bookings XX%, $XX expect of this equate would which to growth enrollment bookings total targeting are year We

this enrollments USU project year-over-year we over program grow by To fiscal BSN current grow over deliver XX%. in enrollments growth by of XX% enrollment XX% year pre-licensure of to XXXX, and to

to units Doctoral our expect enrollments XX%. grow Aspen by nearly also We

approximately Nursing core Aspen our to enrollments to Finally, we this year fiscal moderately year. as by later this plan spend our grow marketing traditional Online increase projected XX% is fiscal

set year-over-year, we're seeing million in fiscal over stage the ARPU we XXXX result confident now per a revenue XXXX XX% As will year is XX% guiding be over $XXX,XXX this already sustained increase the incentives. this of of benefit for We're user which $XX for revenue QX growth. current our than that analyst's fiscal the revenues as quarter increase, current higher average the

an our program. announcement spring MPP five was fixed to the regards over to Aspen to complete or plan first States their first company for in our in today monthly years monthly payments. innovative plans during education provide Practitioner I'll The allow monthly MPP just payment making ago. Allow my at launched payment important background. Family University United University Nurse of The some by regarding XXXX the designed ability students the for number back pay me

would one-year Additionally, given we of tail following payments of approximately academic duration designed student's the a the plan monthly the program. so payment have that the MPP completion

So, their years months the and Therefore for example, of would our and range. average at online about following typically $XX,XXX. range $XX,XXX graduation. Bachelor a two programs University and students finish in The costs post-licensure Masters in nursing half completion that half to XX Aspen typically remains two a a in of payments year that have is level duration

attendance the we're United total program has comfortable other cost with. of MSN nearly tail, of of a Nurse As payment The hand States University quite $XX,XXX. on Family Practitioner

$XXX, a to this payment payment monthly equates the Given approximately plan. required six-year

Given for managing FNP half tail. XX-month the is average means XX-month program completion approximately tail having a for durations two program years for a the and we're that this post-graduation

end the collection has cash the XXst. company payment length this of monthly FNP the tail, at of the this effective Given to July modify month, decided plan

model. aids, private new is cash. or The corporate a tuition reimbursement, such combine going loans, of a program payment course, financial We're with the hybrid plan to method as payment second payment monthly

Here is program new how works. the

about The first courses FNP the which students cost three the program clinical $X,XXX. year are

first this students of monthly will the to through are student duration. These this of program attending $X,XXX XX We minimum $XXX. payments allow two-year while year liability pay made payments is for

student is versus about to with rate combination second ready FA the of utilize cash a that academic our students first to resources commission critical year loan federal year equates or completes or together is with private and required their $XX,XXX, to when aids be a funds. which liability the financial year corporate commence will their academic of However,

to maintains our still our to entirely makes eliminate allows tail will full approach minimize as and that as and college company XX-month in paid upon this University a get debt the the much This mission possible. date. And graduation again as student's affordable student's

an on reduce USU's timeframe program basis. year to FNP FNP-C results to over expected by for operating much positive is cash in fiscal free of begin shortens years company fiscal $X The and cash generating future our more therefore in million XXXX requirements change flow and program the the from this operating

for I'll comments our the to now QX make and Joe relative some to liquidity. over call CFO, results turn Sevely review to our to our financial

Joe Sevely

today will financial begin quarter. our afternoon. Good fourth by our fiscal and our then financial on some I make I progress observations will XXXX results reviewing liquidity. for

the million, million or period revenue and $X.X increase prior XX% from increase quarterly comparable approximately First, sequential was of $XX.X year a a XX%.

fourth strongest in to revenue the were seasonal use strong able Of drive is quarter strength to course our each growth quarter the area. seasonal we and

program, approximately for USU $XXX,XXX at Online the Pre-licensure Aspen's increased and for now revenue. of account XX% that businesses the we or or and fourth program over USU. XX In total and or $X $XXX,XXX quarter, the XX% other by in million months BSN units, XX% pre-licensure sequentially revenue our or past BSN nursing XX% over entered Aspen

margin margin for to expansion Aspen approximately fourth scale. or to XX% of QX. up a was is Group's in gross profit XX% $X.X from quarter due This increased the economies million which

revenue USU's gross increased while Aspen profit margin USU's University's points equaled for quarter gross profit revenue XX% sequentially. the percentage of represented XX% University's quarter. the of Aspen XX USU's gross for

costs million instructional to and for approximately services of rose $X quarter or revenue. the Total XX%

Both which equaled percentage especially Aspen of quarter, of University's University quarter, instructional for revenue from quarter. services and declined Aspen five down USU's were for by revenue instructional USU's points. costs the XX% services while represented of and these USU, previous the XX% costs the

of in million quarter from costs third the XX% Marketing quarter. of for and revenue as promotional the or approximately declining revenue were percentage a $X.X XX%

Aspen down last were revenue equaled USU's Aspen revenue third XX% XX% for of costs quarter marketing University's promotional USU's marketing down in University's the quarter. promotional and quarter. the and of costs XX% from for quarter from XX% the

$X.X a million an quarter $X.X $X.X period approximately to sequential $X.X the million the were or approximately XX% approximately increase for increase G&A during year of million million. comparable costs prior of compared and

continue key expansion. to Containing G&A revenues we as another is aggressively increases grow to margin

comparable So G&A declined net diluted of shareholders satisfied significantly QX XX% to from revenue was applicable we in the $X.XX of $X.X for million, of loss approximately in as QX. compared the percentage XX% or quarter of to prior a share to million, period, Net loss as reduction per year or loss in see $X.X million. net loss $X.X are that approximately for per $X.XX the a to share

the generated incurred about of With interest due approximately sequentially University during shares and of net $XXX,XXX a Aspen recently by quarter. AGI million in to of in million reduction $X.X expenses the tax expenses loss for quarter by net will experienced up the shareholders, the in higher USU authorized income corporate quarter franchise $X.X franchise approximately a and the down AGI's were future. million our tax. expense component come approved $X.X

by USU's increased quarter. net in over achieved about loss by over over improved USU loss $XXX,XXX operating leverage revenues sequentially USU's the $XXX,XXX. by operating Since XX% $XXX,XXX declined and

cash with million $X quarter in operations in driven used $X.X to level quarter. offset investing up million, Aspen the regard the at inflows financing ended liquidity With end third approximately of and $XX the restricted the $X.X from approximately partially by cash by million our activities of was This position, million. net from and of Group cash,

back quarter, numbers for highlight. I'd Stepping there to five from financial key the the are like takeaways, fourth specific

our conscious focus as Mike at towards new our growing businesses aggressively resources made campus USU explained, and a business. Mathews First we pre-licensure decision the to

capable growth AU or margin producing does opportunities believe are of near not in are Quite and the have center spending limited. returns, other result, consistently As returns the that future. in long-term that terms margins AU Online Online quarter staffing. our a the businesses is We AU a XX% mean and operating fourth for strongly but that of we contrary, produced for that call the advertising higher XX%-plus these we low operating limited both that Internet the in believe

think also in room there's ample area. continued growth for this We

being to taken expected has fact quarters with our successful in margins. in When operation it most at Second, we've been of quarter. To very high FNP was build XXXX, growth drive operating the a focused improving a USU on the the us of $X acquired financially the to amount strategy of million several losing significant of program. margin we range a end the money

but not showed First few improvement revenue in operating quarters growth, much loss.

working leverage have the couple we've that quarters and However, at very of past is USU. posted strategy shown our strong operating

this also progress substantial We've expect continue. the to financially pre-licensure We business. made trend with

expect Our the first we launched currently campus to fiscal of current year quarter that was QX in XXXX, campus and be in XXXX. profitable our July

satisfied also adjusted for EBITDA fourth overall report positive we the able company. were quarter to We the that were for

We expect progress to continue profitability. on

in While in is us, adjusted be after QX. QX positive to loss seasonality factor full an year we EBITDA a for for expect adjusted XXXX EBITDA

The expenses, limiting largely growth especially quarters, affected growth. In revenue G&A. growth be driven and with G&A in will lower than expected profitability been strong improvements by recent we've much

at about the Over the we think of years, growth. can we average next on revenue half rate G&A few grow

companies, growth challenges one our high many cash like of is flow. managing Next,

expect cash decline course, we forward, loss and help net flow. to that, of Looking our will

are focused our capital working on we position. addition, improving In

The program, for change plan area. help in the Mike described, expected payment that the in monthly to that FNP significantly is

have financial resources We and carefully years. few reviewed for the our next needs

we with new HonorHealth, our XXXX. plan, business are including our the that well as calendar Phoenix two that, execute partnership sufficient are on campus year new as to existing in an confident and on resources announced additional campuses for Based

cash be EBITDA require We company existing final financing resources positive XXXX. expect our until fall free time of significant and maturity expect in the dates to maturities, our any those of do flow. the the By debt not we current of facilities to the generating beyond

or, raise that we time, to to with will course, bank at could replace favorable. current choose market maturity were date the facility facilities conditions our the look of at traditional we Consequently equity final if

And Q&A I our for to turn the now, the back portion. concludes remarks. That the will prepared call operator

Operator

[Operator Instructions] Certainly.

Aftahi line from question Darren Capital Partners. Our comes first of from the ROTH

please. question, Your

Darren Aftahi

for taking my questions guys. quarter. nice Hey, Thanks and

beyond -- start or may. every line trend FNP first that will That's enrollment? an if And enrollments kind the few, other for kind month Mike, move start? when of on kind you about that a is question. And of my the I The to can the Just did program, talk so, if when what's enrollments? of that

about and pre-licensure unit You bit talked a little the economics there.

of one give timeframe year next said if be expect can campus, the quarter is with belt an much upfront current capital in costs you the understanding -- the to for terms that of to You, quarter-end, required and breakeven? I get a think, be year expectation -- year with kind each campus I profitable. maybe upfront of you of kind the guess, to losses, it how capital costs us under your a with will

third quite terms quarter the business -- breakeven what's for still losing that in it, then in USU your didn't positive? expectation I you on adjusted it just And was money? is USU, catch of EBITDA And trending reported then or

Michael Mathews

question. the questions, I'll two the Darren, handle take let third for Joe the first Mathews. It's and Thanks and Mike questions then I'll it. appreciate

expectations LTV enrollment $XX.X with $XX,XXX the as that which year delivered of of I million. with X,XXX enrollments, gave USU, mentioned the bookings we terms of -- in earlier for about completed that So, just

that emergence, feel and at a point, FNP We're other continue students better the enroll start operationally partly than it's month continuing weakened series easier to we it’s manage month. to -- like every every throughout every of more the it requires month. this because other We every effective rather to program find month program, -- to we other

XXXX expect approximately do We grow enrollments XX%. to fiscal for year this year by

of give to million. which guiding enrollments will the for $XX.X X,XXX about full you bookings we're about So year,

that nearly approximately million. I $XX plan the $XX year-over-year, enrollments again think now XX% by growth to about to bookings delivers USU million from and for that's So grow

previously, perspective, going campus to we've get a each meet for mentioned From our be million. we that we CapEx launch campus $X is as to about

place. six HonorHealth of already utilize we're to that's in building the campus about were weeks that a different equipment is able they However, to lot because which opening we eight and their in have

projecting for be we're $XXX,XXX $XXX,XXX to range. the So that cost the the CapEx to in --

cost that'll more So be effective.

side our airport a we the campus -- quarter Phoenix The the we that’s this for currently campus again the as approximately we've by we south believe active in has XXX than original on that from again delivered first range a mentioned, in that campus, students, quarter be a profitability profitability one launch losses year. will $X.X the million. That's in of profitable to operating year meaning less that the delivering are campus,

launch as Phoenix And campuses in the we country. have as believe the reason result to additional no different as other be we well areas metropolitan any that new in campus that, could across

Joe Sevely

profit third USU you current And about then Yes. or position. loss asked

and significant leverage, continue I operating progress area to do made that expect showing in to So, mention we've that. that significant we are and did

For quarter about was USU of $X.X difficulty] million. XXXX, [technical the fourth loss earnings

Darren Aftahi

Great. Thank you.

Operator

you. Thank

question comes Lake next the Our Street. from of Eric Martinuzzi from line

question, Your please.

Eric Martinuzzi

about had question your QX. -- That a certainly I for was I the was Yes. outlook than better expecting.

make So just numbers I to sure here. have I want my right

$XX for then in adjusted flip QX. correct? Is do EBITDA or to You that you an EBITDA QX post -- loss expect to but million out in expect and to QX loss be that positive more and adjusted reverse

Michael Mathews

that's correct. Yes,

Eric Martinuzzi

Okay. maybe I in just in the modeling here then XXXX. You're driver the of capturing seasonally step What's that? biggest kind the in bookings sequentially had driver? flat of had And slower fiscal I'm you not be down is going What strong QX. to been for a the QX. roughly biggest

Michael Mathews

about QX? talking terms in you for of enrollments Are

Eric Martinuzzi

Sorry, revenue.

Michael Mathews

over when Revenue? quarter, at there's expectations QX. enrollments for see enrollments Number our factors terms this Well USU that we our announce multiple of so, hand. exceeding at we are Okay. one, in you'll and

students. as well core expectation of exceeding pre-licensure -- students our both X-year business, enrollments We also are in for program core as prerequisite our terms in

to HonorHealth students And guys also enrollments drive we at are we're campus. for -- aware, probably prerequisite started you have also the

as you assessing. are well weren't that revenues guys those coming in perhaps So

three our of essentially the overperformance units newest the company. of So, cause the are

nursing So summer because the that this These seasonal declined the seasonal somewhat revenues for the seasonality first of will be summer -- are Online months. businesses months. revenues Aspen again overcoming year that dip core, in new

So $XX revenues be we for quarter. at to see the least yes, million

Eric Martinuzzi

for student little and got the the bit a the Could on expectation the I payment for How old plan then and long payment of attending And change Family you terms? Okay. are FNP? Practitioner. for strategic class the typical long payment recap me Nurse how then there monthly they the was, new plan for

Michael Mathews

yes. Yes,

again. recap I'll So

the So and the they're take typical allowed term-off FNP years. students, typically in that are the to they a the assessing school duration we're the work throughout two

years, the X.X duration So approximately months. typical is average so again XX

plan XX months. payment The is

looking do So to to is first year program. up they're two-year tail payment What approximately the at again how used for is the the the months students month work. XX the by paying to allow is years of $XXX a two during pay decided to program we've in the plan that

their So two-year again $X,XXX of duration. we'll academic throughout payments collect monthly

year $XX,XXX. that second courses on the The collateral academic more expensive and is a up they and liability double year program in are two courses it's and

to students we payment use traditional method different tail in for cannot the XX-month or a alternative use two. to order to a plan payment They federal eliminate methods. made year decision two. that for aids year So must require other financial use They multi-payment

Eric Martinuzzi

of And you on kind now an the have What that of have expectation? to the going student a of go you do body. under is payment you I shift to USU XX% number Do -- students plan? your here, new Okay. the you right is the -- active to mix have obviously do the feel for expect plan surveyed mean students?

Michael Mathews

monthly plan consequence enrollment payment as any expect don't a We change. of this decline

You $XX,XXX north FNP down $XX,XXX we're in competitors programs these remember programs and the our to that charge of range. have for

our than expensive competitors. major less significantly we're So

liability. still the down the through would them this And so approach plan that a with amount the federal they of of attendance does one-third of alteration allows believe total it to cost monthly payment and at $XX,XXX consequently, of pay we total second debt year that incur push

the have students enrolling think problem first So and we in year going we're that we any have to problem just don't half. like

no going forward. have seen We issues

Eric Martinuzzi

was counseling in the before there you where were in there, -- effect change? as Was get impact you're any enrollment Was that perhaps advisers plans kind counseling of, the pull-through as FNP a QX? there prospects like payment

Michael Mathews

Yeah.

You're registration number of going a July complete their by yes. to process see XXst, students decent probably

Eric Martinuzzi

release? any to All there of Okay. the HonorHealth are preparatory the large wait on overcome lastly over and right. you looking to the then need other hurdles Is release program. We're then forward for the pre-licensure arrival or any And September. in to interim shifting just other steps, calendar the

Michael Mathews

No our we're to assured building construction The and go of ready nearing going is September Yeah. semester. great be completion to been that we've shape. with we're the in

Eric Martinuzzi

Okay. on taking quarter, for Thanks. thanks Congrats questions. the the and

Michael Mathews

Thank you.

Operator

Thank you.

Your line the next Canaccord. question Moldow from comes Austin from of

Your question, please.

Austin Moldow

my Hi, question. thanks taking for

one Just please.

or of it you $XXX,XXX spend So online, like your all year increasing what marketing non-USU that I'm next pre-licensure wondering campuses is I'm a non-Aspen see the particularly looks which is business. to online. that with about quarter, assuming more majority

Michael Mathews

mean are combined Well, -- $XXX we to radio. together really some we advertising have Internet approach range. local And interesting surprisingly I some the been enrollment combination deliver able date of with approaches media traditional enrollments our to social interesting with utilizing per in a

things And of those has effective for combination us. is -- terribly been the three

And I utilize the guiding pre-licensure shouldn't don't enrollment cost see as see what so increase in XX% year-over-year $XXX you going business. enrollment why understand to the should should you that do forward. is guys And continue to any we're I think an of I -- you reason don't

we’re the two making just those process will agreements. we're making and launch for affiliation the announcement once that next in and We're planning XX And -- new new XXXX the the in days going two partnerships are those calendar documents an be those XXXX of those be campuses will over to in and XX to metro signed, announcements. of clinical we finalizing markets

Austin Moldow

taking quarter. Thanks and question, the Got congrats it. my on for

Operator

of Malouf comes Thank the Craig-Hallum. question Mike from from you. [Operator Instructions] Our line next

please. question, Your

Mike Malouf

quite little Michael, we is which than the it for focus it's what guys. could were really low taking positive. like looking and if it on the for, Thanks questions I looks bit was just a program churn with lower Good. pre-licensure the

in I that you to could this that of student that the you February guided still up the you Does you enrollments had make -- end at headed said where end you know number X,XXX think given your XX%? get with year? to X,XXX number are that thought ending the at sense of that I year. Is the

Michael Mathews

that sense. makes still Yeah. No

around we three to students. to that ratio remember the Now prerequisite nursing two one of final core core to have -- students two-year

And about so enrollments past year. delivered this fiscal we XXX

add So active you us currently we're And in enrollments assuming rate going range given we're the for we're be expect terms matriculation seeing XXX to the of two-third the that another year. a this X,XXX-plus end yes the in students prerequisite can year. students, at to of

Mike Malouf

were Okay. for of FNP on Great. on does that following for that And I then you just the look How up think you? side, X,XXX. sort looking

Joe Sevely

X,XXX students year-end. for FNP by

with Just it. sticking

Michael Mathews

question. hear repeat apologize. I Mike, didn't I for you me? the Can Yes, that

Mike Malouf

if saying and that well. just as wondering as the still regards X,XXX same guidance to that you question was FNP just the I holds I'm February with laid program, out your in had

Michael Mathews

guidance. have. that the Yes, yes we Yes, That's correct. is still

Mike Malouf

XXX right And over time? have payment now plans? non-FNP this is wondering, those does number I'm you with there how risk trend think USU. at you And And change any in that in about students students just with your --

Michael Mathews

nursing does of body programs plans for The of And other nursing plan correct, available or -- No. business that's change Aspen. student program. combination it’s -- of students. students and those like course range to The at USU at as similar program sort that was are the all only you're BSN nurse in this with payment that's practitioner specific is XX% traditional online XX% a the and well monthly as education students payment students of non-FNP nursing

the spending vast and of at the program our spend the USU to plan that's for continue We the FNP majority on year.

expect students to non-FNP much. percentage change I So of that don't

Mike Malouf

trending One wondering, great long Okay. year taking get closer of to USU. or real will that that you instruction next you XX% think so? XX%? made at cost some the down it see do maybe how to final take to Aspen for Joe, I'm you how core of And do question over the progress in

Joe Sevely

Sure.

going it's some with goes program component program. XX%. differences clinical unlikely of think that the I to be FNP down are ever that There to structural the

bit So consistently be I AU think, a to it's Online. little going higher than

it in hand, down to and reductions additional quarter into quarter third we've in brought near fourth XXs. the think the in low XX% the On XX% we from that both other in see I last the future some the

Mike Malouf

Appreciate Okay. the Thanks for help. it.

Operator

Thank you.

line the Investor. comes Oppenhair a Our of next Kevin question He [ph]. Private is from

Your question, please.

Unidentified Analyst

operational you at making our I'm Fisch. This into of is We sort improvements. of stock Kevin interesting Andrew Mike. about questions of really quarter, and while Oppenhair the progress with recently. for to in stock I hear Hi the [ph]. the guess, here spoke the us performance and it's see improving to and how the relates of liquidity you're and sort progress the translating the on levels looking sort price appetites investor sort and detail

and cetera the come what then three you improvement are of me, two up et investors. the the and catalyst quarters an triggers from that? from we'd detail the from think to Where level just enrollment stock sort next understand like in So or a for appetite for

Michael Mathews

Thanks for yes. Well question the Kevin.

new we point to is is a two launch USU; decision think that, So, thing the BSN to second one as think relatively the and a company made that with the launch businesses: pre-licensure of of acquisition campus. first I I out this important with initial

losses whenever short-term and businesses, new And growth we're starting to required scale. there'll building there's going be so, capital some be while you're two

are to of nuggets G&A couple our the And of we're you in that guiding fiscal that in improvement revenues. in the currently important grow we're the that half form years, of that only so, going the I the Joe rate at see operational we're outlined next is today to think looking

new that two to that scale a these with And see we watching of as I G&A at carefully as get will valuation see growth us of as operational I improve shareholders so, point think would you'll revenue, as -- the terrific the the think continue that And combined company businesses with percentage then will operation I hope our consequence. that improvement. a the

Unidentified Analyst

of to to a acquire you sort strategy looking new there and audience and of an looking audience that. early or make investment sort that at growth all do new new do opportunities? of how Mike get case sort stage present opportunity as we again an Is sort yourself presenting a How of you the capture and compelling attractive to investors see wider at potentially And a investor? or try to

Michael Mathews

consultants of out a I'm again, hire we have of couple have hedge Investor And is Relation work one the road things micro-cap currently of presenting and other incredibly we road to shows a quarter on investors. on plan going we funds we Well, the terms non-deal Relation this that and new have in to do firm. a with, Investor active that also

I think we IR again, the as have it's important continuing well firm hit tell to story. myself as road third-party the a that to So both

Unidentified Analyst

And concern at you're guys have years you that is are are share price sort going any just that any in the price sort improvements pushing the the operational suggesting? of have in sort do timelines to to of or three sense how confidence not of you or a years guys operational something of you moment? sort Is to sort out two of sort improvements reflect share of

about important three I you at interest we investors the sort of attracting the with improvements. Or of because of in next two, a well in sort from the these current is of the That's planning really guess are our what terms operational keeping lot quarters on sort hear items. perspective a how you looking do are sort of guys aspect

are guys a company. public you So

terms process management sort alignment of important discussed in So there -- improvements out conduct it's I'm And of are think and the previously. make. of IR going message getting in this that the gets we to strategic PR to guys looking how you sort terms sort of of really in you're with the still quite I

Michael Mathews

Well, just look at…

Unidentified Analyst

the portion the and $X, wondering of $X $X, guides $X, path of $X of see on we're Board to share? the then sitting the management $X a the the $X, in sort That back and and here sort $X, sort company where

Michael Mathews

Yes.

well company, of of as job So obviously long-term. drive value short-term our the of Board as and shareholder Chairman to the Directors, is both as the course

Unidentified Analyst

Correct.

Michael Mathews

like I say to really that's point. to like at And it's those to our I'd this feel job try goals. two manage -- And all

Unidentified Analyst

to then of we Okay. sort of Well, closely will next the two, three over certainly and the monitor sort we quarters, progress see… hope

Michael Mathews

Yes.

Unidentified Analyst

…yes, hope you're progress operational price it. going some make matches to improvement that see share to the

Joe Sevely

work to do that. hard going We're to

Unidentified Analyst

Many thanks. thanks. Many

Michael Mathews

Thanks Kevin.

Operator

to does Mathews remarks. back I'd This Michael any today's conclude for the session hand question-and-answer program further to program. the like of

Michael Mathews

Thanks afternoon. Look earnings forward everyone your attendance in a in you for Have talking call good to to today. a couple our months. of next

Operator

and ladies for program. your the today's you, conclude does gentlemen, conference. This participation in Thank

now may day. Good You disconnect.

Aspen (ASPU) 9 Jul 192019 Q4 Earnings call transcript