ATGE - Earnings call transcript Q2 2020 | Adtalem Global Education Inc.

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Operator

Good afternoon. My name is Gabriel, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Adtalem Second Quarter Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator

may conference. you begin Resac, your Maureen

Maureen Resac

Financial that Thank future Adtalem's Chairman meaning leadership good this afternoon. conference and and you Adtalem the to Reform today from With with XXXX, Act me Chief Harbor President team Vice and call Randolfi, you I'd that statements risks performance financial of Mike of provision like remind and CEO; Senior involve the Officer. are will condition Lisa and forward-looking Education contain of the uncertainties. within Global of respect the Safe Private Litigation and to Securities Wardell,

most described Actual recent with forward-looking XXXX fully XX, Risk XA, Report from statements. materially and are factors in with those Annual these uncertainties ended risks XX-K other implied August XXXX are on and filed year other fiscal for XX, by in results results more filings Factors, SEC. the the may June the Potential cause that Item on SEC projected differ Form the could or differ to

update undertake whether made from obligation forward-looking new may time which only available as currently result it future information whether date speaks a is made. made of us us of written information and is or We Any oral on or to only publicly on statements, based to as by any be statement forward-looking the no otherwise. that to time developments

GAAP financial to will our commentary non-GAAP During are comparable refer our not which supplement, measures. today's substitute, intended call measures, most directly to though

measures as of other discussed the our which information release and well non-GAAP is to a website. on today, contains press as Our available reconciliation quantitative to GAAP financial be GAAP

that prior otherwise days. up during all made to our today's divestiture financial application second are the segment today's are which Adtalem and and period reflect operations press webcast results note also replays please the To Telephone comparisons the a our of of stated. unless Please year of call result guidance refer Brazil for important the comparison today's replays, to Law discontinued as for former entire is of access & call note XX quarter that pending segment. made Business in release. It the available to

I'll the that, to with call over now And turn Lisa.

Lisa Wardell

thank and afternoon you for Good us. joining

in discuss We like to well I second we I results, organization. as Before on President Treasury quarter, Adtalem her as welcome our and recently would investment delivered Investor continued Maureen as in performance the joined are portfolio, our have solid the to the reflecting our excited of ongoing team. and focus on Relations to Maureen Vice both execution.

revenue verticals. Overall, we second with diligent we maintained EPS quarter expectations. and we growth in as balanced management costs both X.X% investment profitability to our marketing grew and increased with our revenue focus within corporate on deliver recruiting across of And

quarter Given revenue we XXXX. for results as well our momentum, And our reach EPS fiscal our and reaffirming enrollment a performance goals believe the we are second we're result, for to on guidance and track year.

Now, of the segments. our highlights me of let through you each walk

the medical within University healthcare November results, posted solid grow new student and to revenue delivered results we both during investments the Our deliver for and total enrollments as strategies session. Chamberlain long both XXXX increases quarter. are marketing in and term the vertical recruiting in and beginning enrollments up

competitive of the and year result primarily improve place to enrollment over year is is positioning. This represents drove program, enrollment to BSN November period growth. the automatic put start and growth which the BSN RN note, the overall initiatives direct we to of enrollment, only in in Of made up new our RN a

what better to call, top our in to pay bolster well pricing align new as pricing in messaging discussed growth. and our as more to quarterly students More the with optimize specifically, and investment attract initiatives on initiatives order actually recruiting our marketing line students our we last advertisers our and

Forward, benefit strong implemented I'm campaign, the launched these branding strong all which is will new efforts, the see make shown year the positive early of a we performance confident offer We're of progresses. continue initiatives with also and a impact Chamberlain Step to beginning disciplined to as investments.

to the addition the In performed other of to approved BSN our trajectory programs, RN also well. programs

quarter the San campus operating Our at growth campus delivered programs program capacity BSN is Antonio our to results, open session. on its program revenue in during particular DNP also graduate the and quarter. during The as strong delivered continued and for first the grow

the of workforce team to providers workforce better healthcare solutions anticipated as and systems their more Chamberlain to they seek answers healthcare needs needs. has its hospital restructured understand also comprehensive

that As and outcomes allow and caps post sell capacity, for critical offerings for we program employer we're lifted be increase partners. able student to shortages to academic greater our

the addressing the between October, agreement such of During School and which To a training eighth announced University quarter, the work to minority of further physician which partnerships to in Medicine. University marked continued continue is diversity and Ross our medical our Oakwood serving end, we institutional Ross at partnership with to commitment institution, Med that we part assets.

we students enrolled HSI school HBCU have our XX with over RUSM prospective pipeline with growing partnerships This from applicants. of a quarter

school's University ceremony at the from match represented, an Ross had This countries with global Ross Veterinary from opportunity XX%, Med its program At highlighting a health. rating leveraging student driver for the One to to Medicine, students power which This in We School the student quarter an provide of XX we held in interconnectivity of utilizes approach two the students a Med housing new institutions increasingly certificate increase. graduate public and reach. understanding expertise courses new prospective is residency key between gain coat to humans, of Ross additional of launched added public impressive white Chamberlain, assets the interdisciplinary and health environment. the and RUSM and Health, different online animals

prepare for and and disaster to working In respond Vet capacity the addition, and recently Ross research both formed elevate understanding, to to disasters, a globally. groups knowledge

accepted focus on first and a as Our security Disaster the use World Center the RUSM to people, became organization Health One for of to for and Association Medicine Medicine, animals affiliate global school an of scale Disaster a the Emergency safety environment. and Caribbean AUCs joining the veterinary

was Caribbean Ross largest bringing the position we community. conference Indies Kitts veterinary the a there ribbon West joint to students the of from Medicine, of research leadership Medicine. to-date, launch University have world. veterinary the University and around our of share which underscoring the American St. of in veterinary our during continued hosted marked around to latest trends the global cutting the to progress in Vet world Veterinary quarter. Medicine, to the Today, At medical from Ross partnership international Central proud with October, of attend are aimed ceremony at the school's educating the professionals School overall of Vet's the field I progress also partnerships seeing in School programs, the new we official Lancashire in

continues field to AUCs with the in Medicine's include improve Caribbean conference preparedness for disaster the healthcare partnering Center keynote center experts region. disaster Caribbean for to in Emergency The Disaster Management two medicine from grow of Agency the Caribbean medicine. prominent Disaster upcoming addresses will

Ciottone Dr. General, will and on and Disaster and U.S. mental Former Greg Medicine Richard of of Dr. the focus President, Emergency disasters. Surgeon will conference, World impact physical which mass speak Association at the Carmona;

medical that to rate AUC school allows remain it for also compelling XX% choice hold applicants. an excellent a mash of

each and for announced National in the partnership leveraging Professional Finally, NIPA, capabilities AUC Chamberlain Advancement, the a of November. with institution, Institute

the toward they program and meeting the for will a an the degree region. the partners, step nation Maarten, develop nursing of significant As associate-level Caribbean of healthcare first Sint and its kind needs

and are is In summary, our confident we medical well growth healthcare and potential. continued of performing vertical

have ability significant increasing partnerships our ultimately our and robust us a to made competitive leverage the benefits as place We advantage assets expertise strides and across great our in our as which and and programs, well demonstrating a institutions, strategy students. provides have with and

for growth needs services capitalize broadly addition financial segment, the substantial includes the on market serve the high-single-digit delivered in and of compliance banking ramps OnCourse have sector frontline opportunities now the it strong, integration. OnCourse we product our cross-selling to we continues revenue as broader to as training. Learning begun OnCourse union up And ACAMS, post to offerings credit of between well. with Turning which this

launched in in category leader a market during and quarter the the around XXXX, conditions. the also place OnCourse impacted course In of is positive favorable online human quarter awareness. second the while to centered recently comparison. the an its the ACAMS their revenue product was second mortgage due growth education unfavorable shift addition, of to be in quarter first continues co-developed resulting Las took in organizations to segment, it seeing trafficking the XXXX it where conference to first Vegas

now and the during ACAMS of XX% ACAMS in this year-over-year worldwide. exceeds up conference, grew Excluding is the XX,XXX impact quarter. us Membership members revenue

leading prospects. officially to Global Specialist and continued ACAMS this was to long-term new launched its ACAMS we We growth to exam. strong regarding ACAMS revenue near-and bullish fiscal contribute growth Pre-sales later the expect year. January, up Certified launch to be program Sanctions In this certification

their significantly a X,XXX formed of testing to certification reach risk and center SaaS institutions partnership as MasterCard partnership introducing in International. has assessment offering, MasterCard comprehensive more risk In offered a available ACAMS testing five-year serve assessment, locations to through locations January, risk. expanded tool number tripling solution AML globally. agreement, its financial ACAMS with ACAM by MasterCard to its a addition, customers than more In with ability new is exam assess the the ACAMS Under a help of

of employer provide only best-in-class a but This MasterCard is which worldwide calendar allows partner workforce with and new MasterCard laundering expected financial itself, needs. a explaining money of provider membership customer means assessment and year, to position to and solution to they measuring, portfolio. for relate complex a ACAMS operation as compliance standardized not launch multinational also organization, their further countries risk later institutions ACAMS with risks this companies products, will as understanding offering, as

along its offering, the renewals Despite it Becker double should year-over-year largest professional declined during This with divestiture business, continues several continuing the revenue courses in students CPE momentum product product line. half this, strong momentum of well year primarily heads as the its the product quarter core for its Becker its serve enterprise marketing growth the due fiscal business CPA see education latter during strong enhancements into customers on quarter. healthcare which had the to based and accounting of in to prior and success digit amongst recent a Becker on XXXX. basis, to or

financial to build I'm long-term making by the encouraged we're Overall, services growth. progress in sustainable

programs building strong ambitious, our for effectiveness, laid will At and operational May, team our leadership Investor This our centered academic growth, student to a allow evolution and enhance that talent leading solutions outcomes. invest become our superior provider. transformation, workforce to in accelerate out while quality last are our We in that support a a continued strategy expansion foundation which vertical. Day this

first tremendous aligned I'm the to fiscal on around year, results enterprise strategy yet. our are mission first this our core quarter say to on done tenants remain We without proud strategy. efforts. we of deliver that our students during team's have of half beginning second are focused and we not the our said, That the losing

second, First, employers embracing our development our drive for all building new across drive capabilities solutions our units. long finally, product value strengths business our across enhancing third, to education core acquisition and leveraging our in particular upon growth; talent for stage revenue customer strengthening incremental term and corporate retention. Fourth, organic verticals; setting for to portfolio mission; base broadening on looking our the development for and the our and creation and students partnership

in financial be be while at the our focused, said has us. education same that's student to past, going for more agile, new and have This to always the I era values enabled for organization superior As sales more talent time and case our drive the outcomes mission. maintaining performance add academic

an the are we future to opportunities our our excited believe unlock employer position and the our for for our significant forward. in for partners. organization, going excellent We what shareholders students, We employees, value creation holds are

turn With financials. the a over to at look that, let call deeper our me Mike for

Mike Randolfi

our with the and quarter second solid everyone. XXXX ended Lisa, you, fiscal that with good was growth in We revenue expectations. of line Thank afternoon

already marketing the our and supported increase recruitment, student seeing brand Lisa which new in we mentioned, benefit recognition. and As in growth enrollments strategic has investments are of

compared recruiting. marketing items, costs addition, year In special managing by investment offset the the corporate maintain we excluding in prior also earnings share and per to to

in at bed increase increase services grew we to $XXX.X to to and both reserve. housing by Barbados, in Ross the services Learning. of million. healthcare is million and increase remainder related related an About in financial driven a Cost of this increase, debt was growth is in University quarter, second revenue School the to segments. medical During X.X% our half increase and the Medicine educational of our half OnCourse of the is $XXX.X was This about of XX% related the quarter, X.X% the other

for our is As we practices. a party do allowance our with our reserve. We with loan quarter, improve accounts, third believe portfolio help which of also will and each performance goal actions collection We're administration these we the doubtful assessed working forward. reflected strengthening going in us our

were growth and and quarter, $XX.X increase. acquisition support was compared marketing our recruiting OnCourse with million student the in across the revenue due $XX.X added future cost and an million, increase administrative the expenses Student second services businesses periods. The attributable investments enrollment Learning in to inorganic to and increase in X.X% to

investments from expected $XX.X operations items, special share million, prior was early in see compared current per period Marketing with million. results these We're excluding from efforts. period, earnings, lowering excluding million Net million. was the special from are comparable operations, items are to $X.XX which $XX.X with benefit Diluted beginning future items from operations, already income Operating to made $XX.X continuing $XX.X income the continuing special excluding year. earnings compared was periods. to continuing

Turning Healthcare, million. $XXX.X Medical with to to revenue X.X% our Chamberlain X.X%. revenue increased segment starting increase and results,

X.X%, Second new BSN at RN the enrollment Chamberlain first while and marketing campus. student Antonio to quarter strategic class our successful and by increased new new improved partnerships, increased programs, recruiting enrollment X.X%, specifically San driven student total

X.X%. the in veterinary for the and quarter Revenue schools second medical increased

corporate than in to healthcare to to previously second enrollment $XX.X business declined The segment. that and revenue recruiting is and higher special marketing and costs the and result and allocated segment offset the by growth were investments the Excluding quarter medical our operating in in drive decrease XX.X% law future debt being items, former increase bad reserve income for million. of the operating more income the segment,

Turning our now to segment. financial services

increased $XX million. revenue X.X% to Second quarter

million Second revenue quarter $X.X included OnCourse Learning acquisition. the from

quarter to decrease the Excluding quarter second in $X.X quarter is corporate to the XX% allocated special conference to the occurring primarily in declined the law items, XXXX previously The in Las operating income of that result in segment. versus business ACAMS costs XXXX, the income the operating million. of were our second shift Vegas first it and in in former

back of the ACAMS To in OnCourse comparison an in corporate healthcare operating and services segment which be thus income the of year have create acquisition would normalizing revenue benefit and allocations, we to expect the conference down Becker fiscal items impact apples XXXX. financial for X% to excluding disposition, change Learning special slightly would and our increased of timing apples and prior the compared the investments driven the half by will costs

apples page the of see on for can income apples slides. X operating You to our earnings comparison

last pattern the balance sheet total and our with in to turning quarter second million year. in quarter $XX.X operations and cash for typical cashflow.Net line our seasonal Now used the continuing second for

capital million. Our $XX.X compared the second to expenditures total for million $X.X quarter

and flow the second $XXX use cash flow As of month XX cash quarter a on generated in basis was trailing we our free free a result, million. $XX.X million

the of million second quarter on of cash $XX.X with and We outstanding includes borrowings $XXX and million, bank revolver. equivalent our closed million $XXX drawn which cash

in As a the continue the approval $XX million regulatory of fiscal operations us Note our include not Brazil XXXX Brazil will sale reminder, first that does to complete. approximately close transaction. available become expect that of we upon after million our of closing half $XX to year the is to

repurchases this. balance forward us allocation as the integral part sheet close, and have our contingent of to of continues allow exposure contract. $XXX a our currency an net capital Upon hedged approximately to strategy strong will receive we proceeds using million pursue remain Share deal we

repurchased $XX.XX for million we quarter, price $X.X cents million. $XX.X of total shares an the average at a During of approximately

the recently Our through Board XX, of of brings which Directors share authorization additional authorization We repurchase $XXX XXXX share to December total with authorized program, under our million the an $XXX million as December remaining XXXX amount XX, repurchase current

reiterating year year full of and X% to X% to our to X% are growth. on outlook, EPS the X% growth Moving we revenue XXXX guidance full

slightly In revenue year, EPS the of cadence year-over-year than remainder third the terms quarter second the growth expect of and teams we quarter. higher the of of in

towards the our year, returning in shareholders, remain all continued focused rest we of execution, core our capital maintaining and As to the investment flexibility. we and situations and look operational financial companies on while strength

turn call will Q&A. I that, With now the operator to over for the

Operator

[Operator Instructions] The the first with of Barrington question line will come Alex from Paris Research.

Chris Howe

Chris Howe is This Alex. in for sitting

to relates Just here some marketing. as questions it

also, about had be can just you, provided as proved out of You've you experience. but an talk the dynamics you're quarter, things and Medical relates there marketing user you ACAMS, the different far to about for And doing last Healthcare? in update quarter to the I successful it the as as that some mentioned that remember

Lisa Wardell

Yes, certainly.

bit This Healthcare the talked Chamberlain, a only starting last particularly the last was quarter, So enrollment year, online Medical side, obviously, we with and offerings. period. about online an

So, in being RN easy the see and enrollment driven student terms there and new to the BSN of there. comparison that

marketing a in the across area, we media-paid the message potential which of was do. so that So that some digital were our social students, we combination to really get pricing able right to could search

And campus lift investments our we also. for then the also Step awareness very markets around brand and site where Forward the online brand program, to Chamberlain and learn there and and which to have is general in just disciplined mentioned that programs the try on proven the we driving to

the So there. Chamberlin, side, investing medical it have bit Med as been in to Ross relates particularly on a school, we

to being be the or were wishes to cetera. we campus or faculty our story last quarter, really we up was our around going As mentioned against tell not able et

our digital that and overall be as more as really in put will been Barbados, some well the to into session the Now, site off both marketing obviously, with is January year so paying was We've quite well. able investment January, there. school first main last

As relates continue financial Becker the side. we services to and it invest ACAMS, to

that Particularly making that marketing We ROI. side being review believe the to And to set CPE we that it were incremental out invest of is that view marketing on do. continue enrollments sure we've on I in students rebrands. side, cost see that Becker attached able to we the in and the the flat our part there got to achieve market, CTA the the a

recruiting really as they As perspective. last call. And of then the Mike sales around mentioned and and on to are ACAMS, a relates explain lack member the it investment, organization from

are Our over obviously memberships up XX%.

lot just a the on a of brand with thought side chapters doing and relates as it awareness ACAMS work that as I'm leadership the So investment. to

Chris Howe

question then I'll in One queue. last remaining back the and hop

Just as the growth it that I -- good and for perspective, perhaps some bird's some within see are the next relates been that looking to your guess a given portfolio has the portfolio the fiscal avenues moment. in What guidance or from you and outlook inflections year. at is eye different right-sized

Lisa Wardell

in confidence as that our reaffirming the our obviously back but year within terms is our means visibility the confidence on the we of side guidance the for care and have the guidance momentum that provided that annual in enrollment period back happen enrollments they one So half year. of and obviously the guidance of med enrollments health for then half into the

QX. talking that's unexpected. So about that's We obviously one and not were in that

focus has paying us we outcomes of sort off to for Chamberlain off are enrollment are services and well them in to that been some scores other as marketing of look and also what school. conversion, align And is we make need as remain at as that students that and we particularly for well student sure giving our real both if they persistence, as those a paying investments with

side. on So health that's the care med

the you or but services section was recall if you'll about certification we ACAMs just January. certification, On particularly had global in the it, in think launched side financial ACAMs,

is the into years coming you we've sales English. see first XX is we'll certification that in So through in really that the as the presales only done that currently launched. the and QX, Again, outcome those see this is one

that countries, the Mike to us give in the roll European we confidence anything XX we'll strong particularly continue that region out was seeing to we're it as Europe. languages, other for momentum. languages able So that other be because demand launched add. in

Operator

line next comes the go Please Mueller Your Jeff from question of of Baird. ahead.

Jeff Mueller

RN while. feeling for Waiting to for BSN a was like Godot I guess

that So And think there a pricing, turn. as anything see the guess indicators. it the as there about just then message. leading good right I I sustainable it unusual look to comment pricing like is to Does turn period? you was relates seem in or at a this

net I to pricing any need think that but intakes to about pricing, we that's be price BSN considering? there list reduction just new the us in the remind for net Is students. RN

Lisa Wardell

to more went competitors to all job the we not we part pricing apples-to-apples what first were the sort session answer was Jeff, has and with have said, That does know our that so we going of as said being make. been be question, of which online students trend comparison one working. comparison much do, our

before, as more volume then, know, it's understand that of rolled was a communication price. actually our employer they doing coming we making out therefore, are as much that and so getting it were And quarter list of were way versus we they sure pricing that through those which that more around XX% the and last workforce playing basically what And a and I said discount. partners they're students you much

clearer much negatively a been that did XX perspective out students initially rolled from a XX it to to not that on well. that we've went so make volume and And number of we sure impact to

through And half back so the the we've continue been able will that to the anticipated and year. momentum build we of that

Jeff Mueller

a just clean some continues risk needed things should debt maybe to the that on or quarter, It this then it beyond help. up higher so guess newer of review to bad of is CFO did quarters. like expense like there quarter? now debt in comment expenses were role, you component brought kind some outside expense, recognized maybe you And the to than the expense last Mike this bad do sounds normalize you the is that but the the I this in in cleanup any it's -- higher couple this there

Mike Randolfi

the receivable quarter facts over the instituted we resources So, accounts under last significantly some put note the all have leadership, changes. around collections and quarter, circumstances with quarter we new the and of we program. This One, we incorporating meaningful time. our And the go supplemented I particular collectability we say receivable. our the have the the evaluate at program every loan and reserve and we would associated set available

so collection And the significantly quarter, I say increased with what that and is borrowers the insight performance. points our the collection during efforts. with touch provided And additional we that efforts would increased to underlying with regards

additional those So analytics would the assess, and data reserve. we the that insights coupled with typically informed

Now is and at believe administration looked we what new external I collection practices that path make really parties from insights leadership it and would we've say a our good program. improvements perspective, we as bring meaningful the around between to the in loan third have leveraging

program. limiting borrowers with terms the to in so are optimistic we're time, growth also within this make the And how new we At our that, ability is managed. same of at the in that improvements in program time

believe So overall, right Jeff, in the we we're direction here.

Jeff Mueller

And answered been question you up spend. vet then The may me. to and schools where stepped medical -- Chris’s was the this marketing unclear have

Just those January intake? A be rates soon and this as we lead of something is see time as institutions. it response should how for a are can the marketing kind longer know looking

of kind response on early trending? any So just spend is from how the bad the indicators

Mike Randolfi

to from the And between BSN say at perspective. towards and in than medical the did we're and about past to of About more do within quarter marketing is time of you healthcare some this we recovery quarter medical focus the total Chamberlain I the with healthcare as So RN hurricane you year. this XX% $X recruiting, we quarter that up improvements steered the would look same period. the spending really post in And space. is and if obviously the marketing in in and see it's at the benefits million on and step last disproportionately those space, remainder an steered Ross within

Chamberlain share tends a the period between and lion two have you school. would What medical of has I the Chamberlain tell than his, Chamberlain our shorter is, to payback

XX reflected expect what next a of also all guidance. within to side our supports particularly on six it our quarter thoughts particularly expect throughout that's where we to move see within return portfolio we most our So Chamberlain fourth of we the year, within as And the around the invest, overall phasing our see months. this we into quarter year. to fourth significant in the improvements the And

Lisa Wardell

you thing so this beginning stepped marketing And recall 'XX. that QX we of actually as fiscal up in

So about you of longer sale cycle. share that a we talk lot kind

we're of and lots So about think lots is obviously what you our still when obviously, driven confidence year, we the the and in med in sessions you and guidance have back in have visibility vet half And mid one we two certainly that this into by there section. of seeing the first that is visibility see Ross med.

Operator

ahead. line the next with First of go Please will from Analysis. Greendale come question Your Corey

Corey Greendale

the question, in or very your and you clarification potentially QX, remarks. at revenue around your expect Mike Did in the better modest you end commentary starting very than growth QX? in guidance EPS quick say First of in growth

Mike Randolfi

the add revenue just third of the in rate growth in growth third and slightly remarks, the let growth second highlight. context a clarity there and in higher quarter. a quarter just growth revenue the little provide than for to the spoken of in expect for quarter we be And me So to what EPS EPS to repeat and little was of just bit bit

the million terms absolute to quarter and dollars a than in for obviously we second investment $X from more marketing in marketing recruiting fact And perspective. comprise to would of in the quarter of recruiting third in be expect amount of $X us -- there. third and matter quarter, The significant million third contemplated that's the still quarter, will spend roughly

from would see to marketing to year and much quarter a down. third the the in quarter, move third expect smaller we those year would fourth on quarter. expenditures expenses we start we when marketing the to quarter, basis, to fourth increases certainly And taper Now the than recruiting in

Corey Greendale

a EPS just down if somewhat to get going may X% answer X% flat question, up to which QX is year. bit EPS That in for the be in QX, growth QX, to was my in

like in what EPS right consistent that talking that quarter. Am XX% fourth I with growth You're expecting? is the you're doing plus and

Mike Randolfi

opportunities with the businesses. in whether Yes, applied growth where And and to map in continue gone site, year, be to ACAMs that portfolio, our active through within have best the in schools seeing greater really, our we it that to we that's through strong And through invest to we've anticipate through decisions schools Chamberlain right made the year throughout expecting. what seeing and our pipeline our our consistent the on have we recovery Becker where we're year I where we've we're a the of the and going our earlier are if to all continuing would first, we deeper back is year. businesses, look quarters believe medical the we education is really into underlying later our highlight programs strong demand to what where space. part support as into online of where we And going

in way. we in the into potential business good top from quarter. the fourth a for The move pressure as the expect coupled a to meaningful really with would -- subside feel We fairly marketing, about we year-over-year

mindful marketing same So perspective in overall. from we the efficiency effectiveness won't expense At increases time, year-over-year. very being cost we're same also see a the and

Lisa Wardell

fiscal back I 'XX that half difference fiscal would years this known is doing of we've without in had is the beginning of the much 'XX investments as the plan loaded and the But just since back front and the year. or that add, loaded. we between the plan obviously,

of growth, have So of enough processes new not we a we new roll have or areas. and drive we the products, done be that some, not to bit have where example, Becker little particularly those a some needed out. programs, ACAMs also Chamberlain some just perfect have but awareness did these in the drive or and

as So think investing that doing and selling the people that you we're if of QX ACAM doing solution some sale sort in prophecies. things example already started on of about an the we’re really is experienced now we're

we solutions, think more we So about doing give we're Mike but is sanctions robust, need the to in a to as way. all the and be said, frankly together more as comprehensive really them now holistic which able pipeline

right serving the with frontline a employee we language, as of example, lot before. And different things done rollout, an just are multi that banking these within then had levels that multi not solutions clients multinational also organization,

in those the makes half that while, momentum the 'XX. have and Even we the challenging a of us pipeline seeing though we're know was for who confident us that for with So year. back fiscal been you the of

Corey Greendale

would how your you're in sort that the core pre the I'm that in drive and ACAMs, that think, doing words should had essentially I that size other sounds growth. correct that then the given expand is going put expansion languages, or you're your to market is thing you limits market Is in when those of sort to some it mouth things belief of see activities and adding of that incorrect do. accelerated in the is frame of addressable putting I against order terms credentials, particular, business please of market words in the you bumping new demand it? like you the mouth the an me totally On up sort there

Lisa Wardell

of words. some take I'll those

absolutely, pick ones So I'll the work. that

So what our on certification absolutely, products literally other to us are coming are They and up. sanction is expanded we they the that want. how This came with needs. demands pieces and based customers’

So driven organization. a we're remember, mission education and

to well is think portfolio like why to great membership things their be goal organization, in financial fight you talent life ACAM, it like about the when a for is into is it fits which crime, ad doing we So communities. so

governance and But will what our is we've what grow so we're underlying and customers correct AML in. that I doing means is got we need to the commercial also up industry market, that it us part a to prompt of very that. But and want though even is needing, to are asking my goodness, risk is growing we demand in and it for also and that it is perspective you this be compliance that it bring is

year. which both, think of robust back So of to a broader for rate I a us half growth about more and allows it's bit the think the

Operator

Next Capital of Markets. Jeff come line of question ahead. Silber the will Please from BMO go

Jeff Silber

programs changes be program, employment Just there that the to what's assume this. up going let's it Would the who we're under regulatory Is was of that. year employment. structure Ross veterinary I us through do that last wanted any gainful would going give outlined was your you veterinary about next to an I The can some that issue shift and and I as to gainful administration keeping some that Ross been back knows think great? administration? be happen, with time. to apologize comply election Obama all the go might there on if I under question know gears don't we guidance you've know

Lisa Wardell

keeping that. up on been have We

effect all I is things. couple we're So having cetera, of employments the of into et rule One as making participating cetera say comes comments, which new would in. here and gainful a et that

You as the is said We be to the was unintended goal is, for that that cycle. included be don't to in we're where that what graduate everybody gainfully -- employed. our looked will the programs were consequences they obviously, right we recall we against XXXX, at now just XXXX not that that like not is way would

That being well, the in now we don't wins don't the said, what's you election. to as said, let going happen caucus right know -- who obviously we even alone know

Ross increased at done vet a we've of have is what couple One, starting things. so our different And we salaries.

out the that's when think around also graduate. if coming later, north ‘XX-ish, now students their about was -- of post amount with our vet. hospitals starting pet worked you We've Mars started and Banfield to working this average that primarily by working XXX,XXX with XXXX, employer starting little So owned average ’XX, for salary partners, it relates $XX,XXX a bit as so journey, we our that then Healthcare with maybe salary Ross we're

is per medical don't school make The law really that issue the with that a way they with proactive, se, we've been have residency that working been and makers and and does graduate the would be. residency understand sure that the same period this schools courtship really veterinarians for its of included, position that that should be handled be way for sort should they

see So is, we'll stands in open at if the sector of an area don't we are that veterinarian less applicants But very aligned one focus. and comfortable be we don't that regulatory but it see ready. with We you for that frankly, being than look when job. each where

Jeff Silber

talking gears yet. about terms And know, this from services, then just issue for financial I a perspective, of if ACAMs an know But to not in the the this I the timing was conference. year to shift shift past 'XX can I we're quarter there

fiscal that Next be what will in? held year 'XX, quarter

Lisa Wardell

thing of day over Definitely, comp. and it can was a same year three thing keep we very also a have I it uh, for be, so the someone so most our picked but 'XX. should The that needs or sort year look that to preferences and that's growing so will important about was at where a comparable -- into as attendance, both going that date membership cops sponsorship But we it here. are excited say,

Operator

comes Pendy from Next question of with line Greg Sidoti.

Greg Pendy

just on the Thanks. hedge guess, and assuming I'm I you some then or you just year? roll big that pair at first relocations capacity? versus peak off guys Is can you second the campus next put picture still that give should perspective. question, given Just medical And just timing roughly enrolments the of where from us a the quarter are proceeds. of schools, expect a off

Lisa Wardell

so then at Obviously, don't second. So XXXX with capacity, happen, needs still on secondly Yes, approval school. see looking of I'll with that any we’re it issues a timing. the timeframe. to depends the that first fall regulatory start And it's the the we on half but

and quite So capacity close growing. had those Ross are we classes to full have vet,

medical to ways. in different something the capacity remaining of is couple basic there we're capacity Maarten cohort math actively we couple ability of capacity that for Barbados, and and across schools a now and the UK hundred working in second Although, we of to on that has certainly, the but have we grow AUC have UK students in and a has course HLC and program location students, the as Ross couple schools, the been proposition out of a St. now that sciences value have going the Med smaller the why then for fill small, able that of not to saying into of get marketing our work those classes of And clear anticipate certainly a and which of of is ways lot easy, for is path are for be they in that set we've campus. those we our institutions. therefore what but one terms that became particular that and us on we'll of both very to dollars that’s but

Operator

the over back today. for no Resac further I’m to closing have We Maureen questions for the turning call remarks.

Maureen Resac

for today. we has call question, joining. And anyone joining for me you. specific directly. please you the Thank Thank call If thank everyone a

Operator

This concludes call. conference today's

disconnect. may You now

Adtalem Global Education (ATGE) 4 Feb 202020 Q2 Earnings call transcript