Q2 2020 Earnings Call

[music]. Good afternoon. My name is Gabriel and I will be your conference operator today at this time I'd like to welcome everyone to the I tell them second quarter conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question answer session.

If you'd like to ask a question. During this time simply press star followed by the number one on your telephone keypad.

You'd like to withdraw your question simply press. It sounds like you are in research you may begin your conference.

Thank you and good afternoon.

With me today from at Helen leadership team, our leasehold Wardell, Chairman and Chief Executive Officer, and Mike Randolfi, Senior Vice President and Chief Financial Officer.

I'd like to remind you that this conference call will contain forward looking statements within the meaning of the safe Harbor provision of the private Securities Litigation Reform Act of 1995 with respect to the future performance and financial condition of talent Global education that involve risks and.

Uncertainties.

Actual results may differ materially from those projected or implied by these forward looking statement.

Potential risks uncertainties and other factors that could cause results to differ are described more fully in item one a risk factors in the most recent annual report on form 10-K for the fiscal year ended June Thirtyth 2019 filed with the FCC on August 28 2000.

19, and our other filings with SEC.

Any forward looking statement made by US is based only on information currently available to us.

Speaks only as of the date I wish it was made.

We undertake no obligation to publicly update any forward looking statement, whether written or oral that maybe made from time to time, whether as a result of new information future developments or otherwise.

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

Our press release, which contains the GAAP financial and other quantitative information to be discussed today.

A reconciliation of GAAP to non-GAAP measures is available on our website.

Please note that all financial comparisons made during today's call are in comparison to the prior year period, unless otherwise stated.

It is also important to note that our second quarter results and guidance reflect the application of discontinued operations for our former business and lost segment as a result of the pending divestiture of AD tell in Brazil, which made up the entire segment.

Telephone and webcast replay of today's call are available for 30 days.

To access the replays please refer to today's press release.

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

Good afternoon, and thank you for joining us before I discuss our results I would like to welcome worrying to our organization, where we recently joined that Tom as Vice President Treasury and Investor Relations and we're excited to have her on the team.

We delivered solid performance in the second quarter, reflecting both continued investment in our portfolio as well as our ongoing focus on execution. Overall, we grew revenue, 4.8% with growth across both verticals and we maintained our focus on profitability as we balanced increased investment in marketing and recruiting.

Diligent management of corporate costs to deliver second quarter revenue and EPS within our expectations.

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

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

Our long term investments in marketing and recruiting strategies within the medical and healthcare vertical are beginning to deliver results as we grow both revenue and enrollment during the quarter.

Chamberlain University delivered solid results posting increases in both new and total student enrollments for the November 2019 session.

No. The November enrollment period is online only and made up primarily of the RN to BSN program, which drove overall enrollment growth. This represents a year over year, new start world and RN to BSN enrollments and is the direct result of the initiatives, we put in place to improve our competitive positioning.

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

Chamberlain also launched a strong new branding campaign stepped board, which has shown strong performance with disciplined investments.

We're beginning to see the early benefit of all of these efforts and I'm confident the initiatives. We implemented will continue to make a positive impact as the year progressive.

In addition to the approved trajectory of the RN to BSN program. Our other programs also performed well our graduate programs delivered revenue growth during the quarter as the DMP program in particular delivered strong results and are on campus. BSN program also continued to grow during the quarter the San Antonio campus is open.

And operating at capacity for its first session.

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

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

During the quarter, we continue to work to for the institutional partnership at Ross University School of Medicine.