ASPU - Earnings call transcript Q1 2021

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Operator

Good afternoon. Welcome to Aspen's Group Fiscal Year 2021 First 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 the expansion of the highest LTV programs, revenue growth estimates, G&A trends, enrollment growth, the impact of bookings, our estimate concerns, LTV and ARPU and future accounts receivables estimates. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. and and prospects to filed supplement Securities Exchange risks contained business with of issued and its release in in Commission discussion uncertainties Aspen's related is the this A afternoon. press the the XX-K

loss discuss any and of any of be share, to a are website the this under per note for Also, that like measures the conference update available press a developments. are this adjusted Please that the you will conference statements to in one as financial on call, are company's company's Aspen Aspen's Group the the in remind website. in adjusted company to GAAP Presentation release adjusted info. tables directly aspu.com during performance. and most forward-looking loss provided EBITDA, disclaims financial I'd issued year obligation in non-GAAP will EPS net talking company at result income transcript future the the the call about EBITDA company Reconciliation comparable course page of available which slides the the by at earnings There today. measures

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

Michael Mathews

pre-licensure so past growth campuses, Good the line improving new right of operating approvals not We've balance regulatory top quarter metrics, to get delivering acceleration, sheet, great afternoon. BSN progress delivering to made our this for strengthening terms mention, in record enrollments, I'll obtaining it. final

million, XX% from QX, prior full of million significant increased of year $XX.X our prior $XX seasonally $X.X line QX, the historically Because million slide X% or growth guidance to to with raising in year our year-over-year. XX% or the three now top are over this $X.X beat up softest Starting we earnings on revenue our the and revenue presentation, Okay. quarter million, period. in quarter, or

despite students, quarterly seasonally reported previously company's new of and again, during pandemic, six, the enrollments the X,XXX the on slide summer ongoing company announced historically months. record COVID-XX As weaker

XX% XX% has units, the sequentially, enrollment our in by in up its caused that with enrollment month by we with USU which year through as students grew were period. ago. very enrollments university remained overall that impress cost operating of we our in increase delivered quarter, XX.X the students, enrollments, average Aspen while year-over-year X,XXX enrollments quarter, as enrollment for everyone cycle, MER, ratio cost $X,XXX $X,XXX stable X% times. XX XXX at at XXXX, nearly XX-month with pre-licensure record year-over-year metrics, XX, keeping the weighted for for generated In of XX% our plan MER the USU to enjoying increase. for and context, I'd growth that a quarterly over this month enrollment University improved satisfied XX% company's at historic payment year-over-year. In the FNP to a quarter remind first first times times. USU Continuing is sequential BSN new of representing University revenue only XX.X at a enrollment doctoral X% efficiency like the XX% versus to terminated from with XXX year enrollment continued per that by or the and Aspen marketing which comparable to records. our USU enrollments cost also both increased the July

body ARPU enrollment continues each steadily basis, slide AGI's $XX,XXX. which a X, on grow increased year-over-year average revenue overall On million, slide from XX% to note we to active per on bookings or of $XX.X into X, quarter. to $XX,XXX increase in terms that a In translated XX% student

quarter, year-over-year students. X,XXX first the from grew XX% XX,XXX in As we to

X,XXX USU's seeking or XX% and total student are active the X,XXX. XX,XXX degree grew from XX,XXX from X,XXX seeking students. or total student to to body XX% both XX%. active across degree students nursing $XX.XX students universities year-over-year University's grew Of body Aspen active

on result marketing Moving a rate. times. quarter, highlights in X. company minimal that's to our quarter, leverage million improved of $X.X the a of by marketing $XX,XXX. as current financial spend increase The spend increases In only quarter the slide sequential over of prior we efficiency while marketing increasing Folks, enjoyed delivered XX revenue another

a highest of program Our XX% BSN marketing to from LTV ago This Aspen's of marketing spend as this majority spend dropped by revenue our and in our XX% programs namely focusing quarter. the business executing degree program. our down MSN-FNP capital USU, strategy on year is a our a benefit our delivered leverage of percentage growth pre-licensure

the instructional less This prepared at expenses year of period. translated costs our gross our XX% or his XX% together year-over-year. to the percentage to increasing profit increase revenue the XX% In margin for to managing you $X addition, how as G&A from remarks, to versus comparable of this walk than has improvement, operating Frank with through million to gross line. a revenue a bottom rate XX% year-over-year growth dropped of the margin In margin gross improvements gross XX% led will impressive a XX% in our quarter

Now on Texas and to regulatory Florida. in updates

University approvals Texas for immediately. announced students commence As go marketing pre-licensure campuses, BSN giving Science and and or new final Austin, Tampa, and in Aspen Aspen we to Florida, ahead state begin University month, to their received last to Nursing required the Bachelor enroll regulatory

two As components. one a of Aspen into reminder, students program admits

year in the second, students students ready that is PPN than to for required entry one. into credits less three. are competitive participate that's The Ed component first online and Pre-Professional nursing or a years two fully XX And for completed prerequisite the component Gen for evaluation process component offered the that core have Nursing has in

for for core of entering nursing students, Tampa December enrolling starting semester which is began scheduled initial Aspen in XX, students nursing Austin years in enrolling in for two in core three in XXXX. began we and initial students, are and the the month. students for XXXX, month years PPN X, September Austin three, PPN students this The two August, semester Tampa is scheduled and and

million today about Now notes. talk announcement let's convertible $XX the we our regarding made

trading the Mr. Leon in As to term months instrument the you us days. ability convertible thereafter, the term he the the Cooperman the subsequently participating above offering like he professionals share six in About students XX loan restructure Shortly the lead our Cooperman, XXXX, announced that XXth payment ongoing day XXXX. trading for of designed company by and consecutive converts lender are price through thank to graduate our then providing a many above became line-of-credit XXXX, today. working years, Mr. $XX a year afternoon. auto And to now ago, shareholder loan. I'd by agreed was equity support this revolver a plan, place conversion company into at company's consequently, the or him privately in Aspen trade in million later the company for consecutive $XX.XXX. this but is was innovative Today his to the back investor debt-free. became a through I in Therefore, in to allow aware, took Mr. debt-free. Cooperman thanked a have the publicly monthly a $XX.XXX

without consistent that Mr. the company be of nearly this line wouldn't holds today equity him be the both the strength Cooperman's foundation. million have debt this a side. of on in million we $XX.X we company unused position on sheet, of support the aware with I But told numerous credit and still no given drawing have line. cash As intent on $X balance his such of a times, Please

the turn over I'll to our call QX. Now, for financial review to results Frank

Frank Cotroneo

begin a key by for financial progress Thank results you, Mike and XXXX was events, To year $XX.X and I'll as begin, Mike, the an on providing indicated, recently reviewing prior million, some in of million on quarter everyone. input the $X.X ago followed transpired. period. commentary $X.X our afternoon, quarter fiscal million financial and quarter revenue first which increase over by good financial our first over

The been weakest first seasonally typically has quarter quarter. our

we more from combined positions. healthcare the secular have higher-paying as more demand to driven by slowdown the then to existing opportunity COVID open practitioner. This momentum pandemic the economic in a trends X frontline family to seen million nursing nurse the and this the a reflecting nurses increasing move with the looking year fill by is than controlled enrollment, in career cyclical and caused need However, and of

Phoenix this Nurse Aspen of for revenue. revenue XX% post-licensure our programs our quarter. page, of plus BSN the their those balance two in program. Aspen total revenue program, XX% of pre-licensure majority Practitioner USU of Family came from The for MSN vast units other accounted comprise with revenue the Together, accounting subsidiary

these anticipate the is and XXXX expected a of full these and half XX% of as this revenue programs represented As two programs in This XX% fourth XX% to the quarter. for continue to trend year. result, fiscal a represent fiscal over from we the XXXX second comparison,

two footprint of and both we and Notably, metros to students new eventually programs expanding both begun and our of profitability. will BSN the remain growth Tampa. revenue With each prerequisite these new intention campuses, embed first metro, Austin of new drivers new in FNP have long-term emergence into for pre-licensure enrolling year our locations at in

deliver BSN over pre-licensure XXXX. programs the fiscal degree earlier, revenue this second As to half of anticipate I we XX% MSN-FNP and of said a year in

performance ago, of basis million XX% quarter XX% gross XXX a increase reason both universities of Group's from strong increase. gross points. up the first margin, Aspen in increased to was for $X is to primary year the The profit which a an the

enrollment efficiency spend, the quarter drive USU's XX%, strong our XX% and and quarter Marketing $XX,XXX of growth, margin increased marketing which and Aspen respectively. gross the efforts. demonstrating leverage continued were this to by in only

a revenue revenue, XX% As of year Aspen dropped primary efficiency be in a the saw quarter a in decrease to XX% XX% for ago year-over-year. continues and prior Marketing factor USU margin expense marketing We expansion. quarter. percentage sequential in and in the a of percentage from our gross as costs to delivering marketing

current falling a revenue from for from costs XX%. costs of dollar to Aspen the of XX%, revenue from marketing XX% XX% University's XX% growing by cost the were Aspen $XXX,XXX from dropped down basis by quarter, University's to quarter. over in costs of This helped for XX% Total USU's of XX% year-over-year. to decrease XX% on only revenue the despite down while is dropped instructional revenue marketing

operations revenue prior XX% XX% year, fell from first the to increase instructional from In represented academic which G&A revenue services personnel. the primarily the the EA academic was In $X to we Aspen new USU's to calling across million, year activity specifically, instructional for added decided our the advisers, The related XX% in as across the revenue quarter, the XX% in every enrollment personnel what EAs aid XX% defining were expenses primary these are to costs QX universities. both services quarter. XXX trained hires while and the of and USU's costs administrative to over of an we by staff equaled our EAs, and advisers were costs These of but our general in be are growth of company. center, million year of to the enrollment first quarter. prior in and growth financial of OpEx, increasing XX driver additional adding unit University's enrollment University's early center onboarded we our quarter, $X.X grow and handle advisers, Aspen and for increase

of our We of million are grew $X.X quarter, compared current fiscal growth now the enrollment for accomplish to revenue the to the year expenses remainder In the million. $X goal staffed G&A for recurring year. fully fiscal

grow target G&A support manage invest we continue allow our fiscal or of to for XX% will level margin below the expansion, We full us while XXXX. our growth growth OpEx continue key deliver This to in year at expense revenue a and reducing to year to on expansion infrastructure a strategy. $X.X as reduction continued Net of progress to ago. net was This advance the $XXX,XXX XX%. strategy path led has to $X.X an was we a sustainable This million, towards loss in of approximately the profitability. operating compared improvement losses by loss million to

point the line period, year to of USU and to million little minus University share. the and improvement quarter delivered $X.XX gross for dropped $X $X.X as income that for the I'd compared year-over-year reported ago than profit income to of per to this for approximately net dropped of the quarter XX% million Aspen per quarter. per increase is share Net bottom-line $X.XX $X.X a out million. net of of more revenue an increase of minus the that XX% like comparable $X.XX loss share generated

a year fiscal new For introducing income are and adjusted XXXX, and non-GAAP adjusted measure, we EPS. loss net

year loss negative first negative AGI or quarter, ago. compared adjusted For XXXX to Adjusted cents of period. EBITDA prior adjusted in from reflects $X.XX compared per reported $X.X in net the This share breakeven in fiscal the profit $X.X an year adjusted fiscal first to net a The was year-over-year adjusted breakeven an EBITDA quarter. million XXXX in EPS company the zero Consolidated a improvement quarter. year negative first of the quarter EBITDA income prior a of of share earnings $X.X a quarter up million quarter, for compared year a in $XX,XXX to to quarter X% $XXX,XXX the increased EBITDA for margin. $X in the quarter million million resulted the ago per for

$X $X.X or University and of pre-licensure or in million and margin, or million adjusted $X.X margin. delivered of $X.X million of XX% delivering highlighted margin EBITDA EBITDA million XX% adjusted by quarter. delivered $X the its XX% adjusted margin Aspen million, a in of a EBITDA EBITDA EBITDA USU unit Phoenix,

degree remains balance pre-licensure company. Switching sheet. the the Aston's of BSN highest to program our margin

ended up year Group million year-end million $XX.X in $X.X with fiscal million quarter from at and ago Aspen approximately $XX.X the XXXX. cash, a

We period $XXX,XXX $X.X is in have our comparable an ago, million of the year cash less our a of the operations XXX that -- improvement -- operations cash note, in used XX%. $XXX,XXX of in used

accounts, accounts the for of allowance increase accounts in evaluate student for accounts our our business. of our doubtful and receivable revenue in the change doubtful Regarding our allowance context continue growth we to and our and mix in our our

USU. and added to $XXX,XXX This allowance, $XX,XXX quarter, $XXX,XXX to we our for Aspen

weeks expected impact and student performance. our place in in payment line continue specific two allowance few discuss from I'd will numbers quarter, in growth, first to our have second revenue the Stepping from back like results. improvements We quarter that that the to with add to events the will taken last

expense sustainable XX non-cash Aspen delivering reported September vested XX% has PL-BSN for $XX.XX. this to vest, for company team. the $XX consecutive towards threshold First, total stock million. will X, AGI's degree our $X $XX when into leadership's second, senior growth, that expense consecutive to stock plan interest price executives; specific The control trades Compensation total at notes market investing tranche losses remaining the above two divesting of August divesting of when compensation programs, days. based a focused vest with to above future And million shareholder two and of trades XX% XX, XX% was of committee time on new is at the on XX% first quarter thresholds in at at at planning put shareholders, On the margin the campuses racks Starting the performance-based compensation common days. while XXX,XXX vesting. will The or our continued for bonus align company restricted been at takes The convertible four-year performance-based the tranche the in with all stock. price equity $X.X LTV the leadership compensation rewarded stock of related vested at conversion expense grants to and be growth $XX highest the is with which continued common place to the structured at shares of accordingly. drive stock on performance shares. decreasing $XX.XX. Aspen's XX calls grant profitability. is line, sustainable target restricted opening expense threshold, in the value. or trading G&A for thresholds operating the year, metros for XX% while The Vesting second by price place for a and expansion senior in

results. philosophy, strong Aspen promises in against operating kept our is delivering the reflected promises as made,

share Solid March lows market price the combined all-time lifted to have our rally since the highs. stock with execution,

vesting And non-cash the takes negatively Finally, while above, over a investing it tranche to material reported XX that will one at/or quarter non-cash impact is our important will expense, the a this in item the and be numbers, result consecutive loss in years. EBITDA or maintains This next operating ongoing on performance. vest expense. price could our drag is remaining place, there will remember stock not three the additional it's compensation net of $XX. threshold Investment final days trading

today, The conversion automatic the trading million. second stock consecutive announced a his automatic Mike combined $XX in for is convertible conversion achieved threshold Today, Aspen of days, comments, notes event discussed earlier which the base value the of XX above $XX.XXX. of

will price As after detailed the in notes million conversion X.X% shares our per $X.XX. or press This distributed release dilution. close, converted Aspen million today's the at share these of into conversion to count X.X market of stock, outstanding common increase shares share XX.X

Aspen's million of be amortization remaining original into fiscal $X.X issuance will discount the second the addition, accelerated In quarter. of

to eliminate to annual and sheet save stock. $XXX,XXX We pleased to are balance our interest debt this in

new net today, these share. and and shown reconciliation we counterpart. Finally, performance to be per income metrics, will new are or GAAP introducing of earnings two adjusted Both are metrics non-GAAP adjusted loss with their

ongoing new stock these company would non-cash, expenses and the will of effects All otherwise, performance. compensation the non-recurring metrics to and visibility cloud help and business the certain performance, of without recurring communicate of company's

For grew company risk reflected and life early of the its example, cycles, based company an the entered the and were profile funding early-stage arrangements time into company. that the market through evolved as at

acceleration improved of before new performance after to swapping cost of the effect performance lower reduced, was financing to report which and these structures. the P&L. issuance to cost, of profile these company able intended are out AGI's one-time The and older obtain extensions. was the of metrics These types caused risk structures As the charges brings company

intend We the provide its As company's now new That incurred. the use performance. remarks. metrics these turn to to time, these our will concludes for metrics the prepared the merge, balance redundant. questions. necessary, I'll unadjusted and company the metrics Over we adjusted call as charges to back to these expect operator as be sheet, to continues strengthen adjusted transparency to long making

Operator

the Thank Capital [Operator question first comes with Darren you. Instructions] of Our ROTH line from Partners. Aftahi

open. is line now Your

Darren Aftahi

serves my for Mike, kind could maybe nice of strategy? Hey, What Thanks and and of the contrast let's the afternoon. of your compare the guys. I'm questions days, the your And my say, take guide. in that of, kind launch if kind may. seeing quarter kind ramp cost a enrollments And you how Thanks. turn curious, And was question, of taking that correct, how to me initial just was Good NCLEX with summer? Maybe, this job you're of is slated Two, second early memory but if there? smoothly and on campus, I with with Austin, operations? out? so, terms then is then initial performance Phoenix if do marketing

Michael Mathews

Yeah. Thanks Darren.

question quickly. the So, first last I'll take

Our in during timeframe of and the the class first September. NCLEX exam taking the August July-August timeframe, actually graduating finished -- they're month

semester don't we in our other Phoenix, remember, the we weren't semesters time graduated. had our month. doing any formal yet, if class at actually later months So, four is have but students our was first second XX results you that And every we

So, second we'll November by scores approximately be have and graduating the January. in class finished will

as certainly a big very start-up the and ramp going it success. saw we marketing going Phoenix, it's we of so and three three think looks -- of already been In I that far like far, market, three it's weeks, It's be half fast weeks, weeks, in lead in jumped quite not it's XX enrollments don't expect We well. out within And maybe half be as our conversion as say, I Austin, that but terms Phoenix. similar only so to rates big a with thus and would terms to of results it's for so somewhere costs range. a in we

Darren Aftahi

if could And Great. one I add. then more, just

this being an about guys say end past the net the that the with reaching introduction you guide black -- to number talked it guess, said we the I income of of adjusted by I essentially the want accelerated Is think year. didn't by then I profitability, and you slightly. in to have

breakeven three this or point quarters profitable or four So, at are early effectively quarters? you

Michael Mathews

we that point in No, not whether Q&A what Cooperman earnings we we well. we are he would and be we on at do And net would in what believe I that time question reiterate income we GAAP and said comment that that basis, on going be today the the to by positive. QX. And in earlier, Mr. asked fourth as or a were quarter call hopeful the that asked, would said, achieve

Darren Aftahi

Appreciate that. Fair enough. Thank you.

Michael Mathews

Darren. you, Thank

Operator

Thank you.

Craig-Hallum question with line Our the Hamblin comes next Jeremy of from Capital.

is Your open. now line

Jeremy Hamblin

add I to Thanks. on execution. wanted congratulations I'll strong your enrollments. my come the to

compares. saw significant quarter, You uptick the pretty in laps tough some in

did U, see mid-teens. the higher typically versus second I the understand to in attrition higher is a XX% at then, than I at the the think, it You was attrition, XX% thought revenue little And maybe USU, is about think, XX% to typical growth. more I bit really But about bit XX%, little Aspen you in range. normal, want first? why point around a

You in value you see revenue growth. USU these in typically compares, tough were this type overall the your students? attributable much you're to getting the acceleration of and how from lapping don't sequential just that more Is pre-licensure

Michael Mathews

is that, attrition. Jeremy. be a when afternoon, not What I can student Remember would it's our say Good the body, announced that, tricky. student we bit of It's body. attrition necessarily active our is -- analysis Yes.

tend summer during we to see So the the somewhat because courses student summer. students take, are first the flatten which body our less our during months, quarter, typically active

if during get they a given class So that a does given take don't quarter, student counted. not

see seem through all. in at our typical in Aspen like not we may were way attrition, the but not our quarter, strong programs. no the if starts all. was there Class as we seasonality fairly normally first that's nursing there's seasonality And, the at quarter, second quarter it that the online see actually, all post-licensure answer the fact, in did So summer question, higher case your to

we course, we because vacation typically But this our there's you nurse, and registered of you're it, so to during don't with here as take. way, during is your a no family. take is going vacation for about you're the -- if we COVID-XX, so, takeoff units, summer is think happen a on And and believe all true the believe that, happening what what by

during that question. summer courses So ended taking the students up our typically where they don't. answers the Hopefully,

Jeremy Hamblin

Yes, that's great color.

that the then further, a of step campuses, with not programs, existing taking seeing new thinking rest seasonality. provided so, nice color your some And about, on and the much but you've

remains is fall? into as you've the here looked, the early strong. of demand like of very How gotten Sounds the programs business, rest rest your

Michael Mathews

Well, announcement again, Aspen plus right? made other. have we that, we the as traditional track, units Aspen programs, University QX you've it four in we we business online nursing essentially got post-licensure nursing call Aspen So as our

The second unit is and our doctoral unit unit, then now is quarter which the is in history. is And course, primarily business had enrolments, program. Phoenix our our fourth units best Pre-licensure our those Doctor Austin of in out our And, campus Nursing we of Practice, record Three in USU. or DNP our of unit, of and Tampa. four course, third

no seasonally there's be given tends And we So is strong don't to the robust. which especially demand quarter, is for slowing that fall wise. down, question see quarter. businesses that our in this This

Jeremy Hamblin

just for sales one actually on me and is your Last Great. marketing.

feels color So demand, bit get a here, the as your you you But there you didn't remarks, but given -- making spend? the an investments and a going going the on acceleration lot prepared the what remaining little bit a to more more to July the quarters cost three in clearly in aggressive at are year, of the quarter. on of you provide have you look terms in are you're like -- little in additional

Michael Mathews

Yeah. Yes.

question, signal That's to fact, wanted great In that – today. we Jeremy. really a We thanks.

the that, I our by we last enrollment increased earnings mentioned my in As XX% XX remarks, days. center over

XX we total group entire at ended XXX employees Our the enrollment QX, end enrollment QX and of was advisers. with

staffed of this So of XX% add fully rest material year. number fiscal to don't We the now again, expect the we We're sequentially. by increased year. that for EAs, a

So set we're enrollment in our goals that we place to deliver forth internally.

we was entirely we adding what it XX-day demand to a the every rather decision that result this up over made do, normally staff period EAs is of than last So quarter. which strong such doing

demand. more increasing of enrollment robust this So in staff, we were our because aggressive

Jeremy Hamblin

wishes, Best Great. Thanks for guys. the color.

Michael Mathews

you. Thank

Operator

you. Thank

comes Grondahl question the Securities. of Mike next from Northland Our line with

Your open. is line now

Mike Grondahl

on Yes. a you front they Thanks the said, those the for up little could think who economy, I nurses other you expand comment some maybe And on trends and off kind little the to both line, of a bit? wanted of you then, taking practitioner to Mike, guys One, I pre-licensure or then, you question. helping area of a bit program. think results. some for of any if had kind demand nurse And little incremental bit, is also the of surprised you? signed classes? alluded Congrats those some took there the drive get could you that

Michael Mathews

okay. Well,

at our And University, the a no all, of there's United first – past nurse So enrollment level master practitioner a States quarter. program it's of had question. hearing program. we historic we And this quarter course, We're ends.

the that their hours, a is educated demand a an to economy's become since to millennials hit. our robust sadly, setting own communicating And staff them flexibility So perspective, registered you asked, practice, then, This dream that lines, have to unemployed dream they lot you have RNs the have order become – before which so private our getting program after of having to off a And their BSN And BSN these nurse had pandemic a it's allows economic enrollment front in nurses. from the enter practitioner, the or actually the a as are furloughed the program. and is accelerated. pre-licensure to of ended COVID-XX. then up

a thing do – of to we try life's lot from students health perspective. Phoenix, these a demand better a mission enrollments to care to in of what during again, prospective of because, saw a quite your in pickup our accomplish So dark period

over There's that tailwinds the the to those sense place are these this point these makes third it that major that both your took trends. at no both answer to So would trends would I several other time, – of of significant – I months. last two question

Mike Grondahl

the driving two incremental. enrollment. Those are That's

Okay. Hey, Thanks a lot. great.

Michael Mathews

you, Thank Mike.

Operator

you. Thank

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

Your line now open. is

Eric Martinuzzi

I and -- filing seems question wasn't especially equity the guess, million a debt a here, or Congrats had the I recent the message, I'm I like you on debt. plenty potential, you because out beefed the up cash got mixed getting kind of regarding converting clearing had Yeah. -- about it sure agreement. guy. with of quarter, contribution $XX.X

So, comment a I then was wondering second if question. you have on And could I that.

Michael Mathews

Eric. Yeah. Yeah. Good afternoon,

file So, have the it APM to for does no the prospectus the governance felt an an market supplement, move. aftermarket, for working provision going we has to capital and good as into The supplement. it company. of prospectus of decided part raise We intention a company equity purposes was the just

Eric Martinuzzi

assume cycle of I the expire? on When that's What's your the then, part And shelf? that previously shelf. Okay. does registered

Michael Mathews

shelf next are of on you there's in shelf. correct, expires The approximately available the remaining $XX million year. Yeah. And April

Eric Martinuzzi

Got you.

then, new And the a or state, I of question new there's when limits up enrollments. have you you're in your a on a sometimes kind program new Okay. educator open was,

USU, of limits you to any They your kind Florida, classes. guys when of think, I there acquired far want you to Phoenix of was size would Austin, there Is license. it programs? compare give Texas, how the as a certain training number as Tampa,

Michael Mathews

a Well, Board in I differently. of every mean, nursing little state operates every

any Florida, we're restrictions. growth in they Phoenix, not So, have any place. not In currently guidelines in also specific subject do to

run of the Board six a to the of first and year. semesters for submitted Nursing and four-semester with six you and day where semesters for As like accepted we've for through of night they three annum program state as per a process are year. And semesters weekend we three work six, have total program we guys aware, this there, per the Texas, a we

year now to year, start semester of start. that and in Texas two normal to of So, easy a plan and our to Board go starts for a to Nursing we're weekend planning two-day four move -- the the total semester asked six to from in first semester and we

Eric Martinuzzi

Understand.

for taking Thanks Okay. my question.

Michael Mathews

Thank you.

Operator

you. Thank

comes line with Genuity. question next Our Austin of from the Moldow Canaccord

now is line Your open.

Austin Moldow

Hi. Thanks FNP of questions. for for new give your quick taking a you on spaces my update the program? Can weekend immersion your timing

Michael Mathews

Yeah. Sure.

the is we Phoenix which build in So, by we the campus. out our have our of completed what our call campus, original airport, space Elwood

weekend calendar immersions in this of fourth begin so, will And year. quarter the

process the we and hope conduct to And building rooms have right both we now months. locations locations into in to in two And approvals we So in out coming immersions have of we two Tampa. those now exam for fourth as Austin the move immersions. for the quarter are

Austin Moldow

can type students? potential the bit changed how Great. dominant a had the or Thanks. in you little your different the enrollment prospective during And pandemic, if through more one about you've that's talk of now? past, maybe And channels is

Michael Mathews

Yes, good question.

the So, of search we, essentially space I And advertising, much major advertising Internet really like Internet of the marketing integrated managed have programs -- course, in-house. and where e-mail. right? and in active is a channels, display all were we approach, of is three mean, very the about pretty channels of advertising across pre-licensure, is kind vertically the mean, behave which vertically on let's the Each everything all talk I integrated

directly work with publishers. web we So

traditional to are we remaining in side these because been We program, in whereas working to then programs addition much primarily years pre-licensure local use professionals. the traditional With the several be tend the in older advertising. millennials, radio. advertising pre-licensure for social radio, tend display weave that more we've to And media

those very out channels program we then essentially use three a we of then that figure spend. we So once and that testing have lots a custom by pre-licensure. and we we has that are what unique Every works, for optimize our approach doing

Austin Moldow

give you're how it last seeing kind and you can thoughts Aspen? it. the industry Got might think my in question you is, affect on And just of your consolidation

Michael Mathews

the company you Yes. our I Adtalem. course, in Chamberlain owned, follow College so of that would that public that's competitor mean, very marketplace those of of well you aware the be probably the for sector is carefully, major by Nursing to with to Chamberlain as and we Great programs online continue them post-licensure for our well coming Phoenix. program years. our University, good expect in compete nursing And competitor pre-licensure all the as compete across we of with

competitor second a our which Practitioner our major Our program. Nurse largest they’re competitor MSN and USU at is Walden for University, program, very has strong

Walden share aware, to hopefully taking I We're is proven think we've whether share. or owned not to Laureate by very Adtalem, at market successful you going and both to regardless competing or be And these guys they're universities. owned market by us. keep doesn't matter of are it from taking effectively whether of continue

Austin Moldow

very Thanks questions. taking much for my Great.

Operator

Sharma B. Our from Instructions] Raj with the [Operator next you. line Riley. Thank of comes question

open. now is line Your

Raj Sharma

do And the and the -- to in I good campuses? profitability trends do the of, and be Austin, would could year. congratulations in Phoenix I any enrollment a the sort a any of the please we results. be a sort on similar said -- you on campuses? these mentioned in on you to two afternoon enrollment with do $XX Tampa expect on Hello. color you've talk also, could we million similar? Good a And the question, sense, how follow-on and had have Mike, Should level? what breakeven bit know then expect campuses really Phoenix full little just about revenue. should you've you expect they run rate that that future future a past line know that I when And the

Michael Mathews

a XX,XXX-foot of, Yes. our little let bit strategy. me about, Well, talk level, sort pre-licensure

Raj Sharma

Yes.

Michael Mathews

to populations what million and X.X between locations, metro. which that X locations, as in Tier X launch in is million Tier of call we people planning metro we're population So, as which X campuses well are more million or X

its a So, is size. more in Austin the edge be Phoenix being terms and a is of X right for X Tampa Tier location would X overall as location, Tier example, on of well. Tier of

is Although, you of as guys quite there significant. know, population the course, growth

at to are in million. a it would full $XX with to million to million where is in looking we be to the essentially would time, probably So on $XX range, which Tampa, $XX top Tier do $XX maturity a we to the and we're when to be regard line, X expect market have over hit maturity, expect we Phoenix. I million Austin level

top three, once five So, campuses I all at $XX think, line four, a maturity least it year be of hits will our million over period. a

Raj Sharma

view should achieves breakeven? profitability where the how it And operating and we

Michael Mathews

Yes. couple quarters. I markets won't quarter. a And about Phoenix, fashion. percentage in months what good about in operations. first to fifth two I in quarter. of don't first the saw different then be reason of think fourth Phoenix we of that see any saw profitability then, in and million And that we operate broke They're don't the started And you're from course, what was going to new loss in see in going to XX that we operating then, drive our round loss of in $X.X a results. we even materially that similar is why that $XXX,XXX

Raj Sharma

Thank Great. you for that. Congrats again.

Michael Mathews

Thank you, Raj.

Operator

Thank you.

the this have the call for will further back remarks. at closing no We in time. queue now turn to I management questions

Michael Mathews

in earnings We Thanks, to forward Good in to call quarter next the call earnings XXXX Aspen attending afternoon. December. look Group. you talking first for everyone, fiscal our for

Operator

call. Ladies and gentlemen, conference this concludes your participation. you today's for Thank

You may now disconnect.

Aspen (ASPU) 14 Sep 202021 Q1 Earnings call transcript