Q4 2019 Earnings Call

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Excuse annual report on form 10-K for the year ended December 31st, 2019 and other filings with the Securities and Exchange Commission except as expressly required by the Securities laws, the company undertakes no obligation to update those factors or any forward-looking statements to reflect future events developments or change circumstances or for any other reasons in addition. Today's refer to non-gaap financial measures, which are intended to supplement but not substitute to the most directly comparable gaap measures the earnings release that accompanies today's call contains Finance Financial other quantitative information to discuss today as well as the reconciliation of the gaap to non-gaap measures and is available within the investor relations page of the company's website with that. I'd like to turn the call over to Todd Todd.

Thank you Brooks. Good afternoon everyone and thank you for joining us on today's call. We close 2019 on a positive note with fourth-quarter and full-year operating results coming in ahead of our expectations. We are entering 2020 with good momentum and are excited to continue our journey to serve current and prospective students at our academic institutions under the new name for Education. We believe our focus on investing in students serving functions and related technology initiatives will continue to have positive impacts on student experiences retention and academic outcomes for students. Here are some key highlights for the year first 2019 revenues operating income and cash flow increased versus the prior-year this increase reflects enrollment growth had both academic institutions that was supported by solid levels of perspective student interests for our program offerings.

to enrollment

This would remain positive through the fourth quarter and we are entering 2028 with good momentum, which we believe will further contribute to our objective a sustainable and responsible growth three operating and Chuck efficiencies have allowed us to continue reinvesting in our students serving functions, including technology and data analytics which enhance our staff's ability to serve and support our students. Lastly, We're focused on completing the acquisition of trading University. We expect the transaction to close in early March. Once the department has added trade-ins programmed to a I use authorization and are working diligently towards smooth integration into AIU. Our Focus will be on maintaining and further enhancing academic experiences for students from both universities.

Well that expand further on some of the successes for the year shortly the sheets will then cover more details around the financials and 2020 outlook before I add some closing thoughts to end the call.

For 2019 we reported net income of $70 or $0.97 per diluted share while adjusted earnings per diluted share which excludes certain significant and non-cash items wage was a dollar $37 full year adjusted operating income was 134.3 million dollars an increase of 27.7% from one thousand 1 million thousand hundred five point two million dollars in the prior-year with the Improvement primarily driven by Revenue growth at our universities as well as lower operating expenses associated with are closed campuses off student experiences retention and academic outcomes Remain the primary focus across all of our teams and I believe we are well-positioned both in the competitive and operating standpoint to serve and educate em and perspective non-traditional students with a focus on adult learners.

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Romans at both universities continue to experience growth in 2019 as noted previously enrollment Trends have also been supported by consistent levels of perspective student interests for online education, including our program offerings at CT. You told the student enrollment grew 4.4% for the air primarily supported by new student enrollment growth of 8.5% off and 7% for the full year as compared to the prior-year. We Believe ctu's new enrollment growth is primarily attributed to the following efforts first a consistent level of prospective student interest that is being well served by our admissions and Advising functions increased training and improved tenure has enabled our Personnel to effectively and efficiently serve prospective students Thursday evaluate one of our academic institutions for the program of choice.

Second leveraging data analytics and integrating technology to provide current and prospective students with more relevant and personalized experiences whether they are making decisions about starting school or are progressing through their children program of study. This includes leveraging the to a message or between advising faculty and students and using enhanced reporting and data analytics to provide more real-time information to and support for students third continued progress within our corporate Partnerships program corporate Partnerships have been a meaningful contributor of enrollment growth over the past few years and approximately 19% of CTS total enrollment now come from these Partnerships new and existing corporate Partnerships take time to develop and nurture that is previously discussed students released Partnerships have relatively high-wage assistance and that's becoming a larger percentage of our overall total enrollments.

Further Improvement in productivity and coordination within the admissions and Advising teams. We have refined or advising model to differentiate Outreach based on students previous education level and academic life is with our goal being to deliver the right message at the right time at the right to the right student.

Based on the continued success of these various efforts. I just discussed and consistent levels of professing student interests. We expect CT you to experience positive enrollment goals for the first quarter back a full year of 2020 versus the prior-year in line with our objective of sustainable and responsible growth. Now turning to AI you as a reminder May I use academic calendar significantly impact the number of enrollment dates for any given quarter there for impacting quarterly enrollment results. We have been working to adjust the academic calendar so that the magnitude and frequency of this counter driven very often is less frequent note that student enrollment days for the fourth quarter were relatively comparable to the prior year. And we are pleased to share that you experienced 12.7% growth in New York moments for the fourth quarter as compared to the prior-year quarter primarily driven by the organic growth initiatives similar to the third quarter in 2019 AIU experience new enrollment growth for

the quarter with a comparable number of in

Seven days looking past the quarterly variability driven by the academic calendar operating results and student enrollment Trends were positive as compared to the prior-year with full-year new student at home at 26.6% while total student enrollment at the end of the year were up 10.2% We believe this strong enrollment growth can be attributed to the following First the full package was positively impacted by 8.2% more student enrollment dates during the year as compared to the prior-year second prospective students interest has remained consistent throughout the year and was welcomed by a I used graduate team approach. These graduate teams are pursuing a more holistic student support process by collectively cultivating a student first mindset across Admissions Office advising and financial aid. These teams are also becoming more efficient and effective in their student Outreach and support as they gain experience, which we believe is positively impacting student retention wage.

academic outcomes third we can

You need to make incremental operational changed across various student support processes that focus on enhancing student experiences throughout their academic life cycle by providing coordinated and customized Outreach using analytics and more effectively communication between admissions student advising and financial aid for the Academic Teams that you have continued to optimize course sequencing wage based on section-by-section learning while redesigning course content and designed to create a learner Centric model whether it's significant focus on step-by-step versus assignment completion We Believe Thursdays measures have had a positive impact on student experiences there by positively impacting retention in general continues to make solid progress with student enrollments expected to grow in 2012-13 is a prior year in line with its objective a sustainable and responsible growth. However, we expect a I use new enrollment new student enrollment to show quarterly variability due to his academic calendar wage.

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Sites around the quarterly academic calendar for 2020 during his discussion before I turn the call over to Ashish. Let me quickly comment on some key technology and student retention initiatives the phone number support and improve academic outcomes and student learning experiences at our universities first our faculty and student mobile apps are fully operational and are being increasingly used by student teams as a communication tool for students. In addition. The two-way messaging app is now deployed and used across all students support functions including admissions academics student advising and financial aid mobile app usage is high at both universities with over 89% adoption rate by students. We continue to update the app based on students and employee feedback to increase its importance to students as an effective means for mass communications next artificial intelligence powered chatbot. Lucy is increasingly useful in addressing questions from prospective students during a student enrollment process. This is allowed

to reallocate resources to

Support functions for our continuing students. We will continue to expand the application of artificial intelligence across the student's academic life cycle from the initial perspective student inquiry and starting class to ongoing advising it both of our academic institutions. As we refine and Prue deploy such tools over the next few years. We hope to provide students with 24/7 support while providing a better user experience that is more personalized in nature next machine learning and data analytics have enhanced the functionality and ineffectiveness of our marketing Outreach efforts to prospective students as a result money efforts are more focused based on a student's propensity to be successful in their academic programs.

Also our faculty and student advising teams across both institution have been using Predictive Analytics to provide relevant meaningful and customize support to students as they continue in their programs of study teams are updating course design and content and modifying course sequencing between general education and program courses to improve student learning and engagement. Finally. We are testing a new orientation framework, which is designed to streamline navigation and content to increase relevance to each student qualitative feedback is indicating a positive initial response. And we will continue to refine this long piece of the student journey in the coming months to conclude our efforts and progress in 2019 provide us with the ability to continue investing in students serving functions and technology in 2020.

Bolsi to you and how are you?

Continue to execute well against our objective a sustainable and responsible growth providing reaffirmation around our overall strategy of prioritizing student serving processes and initiatives while giving us eventually and operating confidence to continue investing in a University's with that. I'd like to turn the call over to Ashish for a more detailed review of our fourth quarter results and full year 2019 results and balance sheet as well as a 2020 Outlet Ashish. Thank you. I will start with a review of our full year and fourth quarter results and then discuss the balance sheet and twenty20 outlook for handing the call back two. For his closing remarks.

Please note that all comparisons I discussed our versus the comparative prior year. Unless otherwise stated.

Is there a reminder effective June 1st of 2019 we changed our assignment presentation after the responsible completion of our T charts. Thus the all other campuses segment included the school's is no longer in operating segments as a result residual losses associated with these clothes campuses have now been included within the corporate and off a degree prior. Have been recast to maintain comparability.

Now a quick overview of our results for the full year 2019 total company operating income increased to eighty six and a half million dollars as compared to an operating income of 71.3 million dollars We Believe adjusted operating income which excludes certain significant and non-cash items is more reflective of the underlying operating performance.

This measure came in at 134.3 million dollars for the year exciting our latest Outlook range of 130232000000 dollars and reflecting an increase of approximately 27.7% versus the prior-year.

Net income for the year was 70 million dollars or $0.97 per diluted share while adjusted earnings per diluted share which again we believe is more indicative of the underlying operating performance was up Thirty and half percent to a dollar 37.

Well, we're all we ended the year on a good note with the fourth quarter operating income of $32 and earnings per diluted share of $0.38 adjusted operating income for the club was thirty four point six million dollars vs. 29.7 million dollars and adjusted earnings per diluted share was $0.33 versus $0.30.

These positive operating results reflect efficiency and Effectiveness across our student enrollment and student serving processes that supported new enrollment growth and retention as current students continued to walk us through their program of study or fourth quarter 2019 results also reflect lower-than-expected expenses or employee-related Insurance programs and other non stop serving functions as well as better-than-expected prospective student interests in the final academic term of the year, which contributed to the results exceeding our Outlook.

Before I go into the segment details a quick comment on the adjusting items for the full year 2019.

During the year, we recorded a $30 settlement charge relating to the resolution of the FTC inquiry and a seven point 1 million dollar charge related to the settlement of the individual authors and claims in Oregon.

We are pleased to have resolved our significant outstanding legal matters. Another adjusting item is the one point six million dollars of lease expenses or or vacated locations related to close campuses.

Excluding these items the Improvement in operating performance was primarily driven by Revenue growth at both universities as well as reduced losses associated with our clothes campuses.

Partially offsetting these positives were additional costs associated with the compliance and monitoring efforts related to the FTC and the multi-state AG agreements investments in marketing as well as increased bad debt expense that I will provide more color on shortly.

We don't do some more details around the 2019 financials.

Total company Revenue was 627.7 million dollars for the year and increased 8% from 581.3 million with fourth-quarter Revenue up 8.9% versus the prior-year quarter.

Both universities contribute contributed to the revenue growth primarily driven by consistent levels of prospective student interests, which are being well-served by our admissions and Advising teams wage is improving student retention friends.

also

Positively impacting full-year Revenue was 4.2% more Revenue earning days at AIU.

As it relates to our segments Revenue at CTU was up 4.4% to 392.3 million dollars for the year supported by positive enrollment Trends, which also drove quarter Revenue up 8.3% to a hundred two point six million dollars.

Well, you're operating income of 108.6 million dollars was three million or 2.7% below prior year, but includes an eighteen point six million dollar charge for the back portion of the FTC settlement recorded within CTU, excluding this charge operating income improved by approximately 14% or 15.6 million dollars primarily driven by Revenue growth while operating expenses were slightly higher with increased marketing and bad debt expenses offsetting efficiencies across various students serving process.

Turning to aru revenue increased 14.9% to 235.4 million dollars for the year primarily driven by positive enrollment Trends as well as 4.2% more Revenue earning days compared to the prior-year.

Pull your operating income of 16.4 million dollars was eight point two million dollars above prior year but includes an eleven point four million dollar charge for the portion of the FTC settlement recorded with them. Are you excluding this charge operating income improved by approximately 19.6 million dollars primarily driven by Revenue growth

Operating leverage was decent with the revenue growth being partially offset with increased bad debt and marketing expenses.

Let me briefly touch up touch on some of the factors that relate to bad debt expense recall that bad debt in any given quarter is impacted by quarterly variability that can be associated with this expense.

Variability positively impacted bad debt expense in the third quarter but negatively impacted the fourth quarter resulting in bad debt expense increasing sequentially over the third quarter off. There are several factors impacting quarterly bad debt variability including the AIU academic calendar student account balances timing of cash collections, am increasingly complex Department of Education financial aid requirements to name a few.

Collectively these factors can disproportionately impact bad debt in any given quarter.

However, even though bad debt expense in the fourth quarter increased as compared to the prior-year quarter. The rate of increase has compared to the prior-year. Improved during the second half of 2019 as compared to the first half of 2019 as we continue to focus on further improving retention and financial aid process is for our students.

Are suing support teams have increased their focus on financial aid documentation collection and our counseling students through the title for process so that they are better prepared to start school.

We are also focused on emphasizing employer-paid and other direct pay education programs such as our corporate Partnerships.

Note that these programs typically have lower back that associated with them.

Now, let me spend a few minutes discussing student enrollments total student enrollment at CT you grew by 4.4% for the year primarily supported by noon role and growth as well as improving retention back in the second half of the year.

New student enrollment growth increased 7% for the full year and eight and a half percent for the fourth quarter has taught outlined. We believe these positive enrollment Trends reflect the investment across our student enrollment and support functions, which are allowing us to effectively serve the prospective student interest. We are experiencing as well as the continued progress within our corporate office partnership program.

June by these Trends and further supported by Investments planned for 2020. We expect new enrollments foresee to you to grow in the first quarter and for the full year 2020.

Total student enrollment at increased 10.2% for the year supported by new enrollment growth which was 26.6% for the full year and 12.7% for the fourth quarter off in addition to the initiatives discussed earlier full your new student enrollments were positively impacted by 8.2% more enrollment dates for the year first-year into a I use academic calendar that the number of enrollment days in the fourth quarter was relatively comparable to the prior-year quarter and the fourth quarter near Norman results for the most part organic growth recall that the academic calendar at AIU specifically the number of enrollment dates in any given period has a significant impact on the new truck roll minutes for that.

excluding this variability

We believe you is experiencing organic enrollment growth as evidenced by the second app enrollment where the number of enrollment days was comparable and has been supported by various operating initiatives Investments. Discussed.

Looking ahead to 2020 on a full year basis. May I use academic calendar is relatively comparable to 2019 with a consistent number of Revenue and enrollment dates for each year. And we expect you to experience enrollment growth for the year 2020.

However, there will be quarterly variability especially as it relates to enrollment days such that the first quarter of 2020 will have approximately Thirty 1% less and Roman days off all the second quarter will have approximately fifty percent more enrollment days as compared to the respective quarterly periods in 2019.

As a result we expect to decline in the first quarter, but this decline will be more than offset by growth in the second quarter.

Third and fourth quarters of 2020 we expect that enrollment dates to be comparable for each quarter as compared to the respective prior-year quarter.

A quick update on corporate and other this category now includes residue operating losses associated with those campuses due to the completion of our teachers.

Excluding losses associated with goals campuses operating losses for the year with 8.2 million dollars higher primarily due to the recognition of 3 and 1/2 million dollars of stock compensation expenses during the fourth quarter relating to performance-based stock awards for which the performance conditions were previously estimated to not likely be achieved compliance monitoring costs associated with the FTC and the multi State AG agreements and certain operating recoveries that reduce prior your expenses.

Also note that for the fourth quarter operating losses associated with the clothes campuses were approximately 1 million dollars.

Now to income taxes for the fourth quarter, we recorded provision for income tax of 6.1 million.

This resulted in an effective tax rate of 18.1% for the. The quarters tax rate was positively impacted by approximately 10% to adjust the previous life year to date tax provision, which lowered the full your tax rate due to an additional $23 of the $30 FTC settlement meeting the criteria for tax deductible in the fourth quarter.

With this change twenty nine point seven million dollars of the $30 ft settlement recorded in the second quarter satisfies the criteria for tax deductibility.

For the full year, we recorded a tax provision of twenty two point four million dollars resulting in an effective tax rate of 24.1%

Please note that for the full year 2019. Our tax rate was positively impacted by approximately 2.1% related to the settlement of a state audit amended state income tax return filings and the staff's effect of stock-based compensation for 2020. We expect our tax rate to be between 25 and 1/2 + 26 and a half percent which does not assume any money will benefit from the tax effect of stock-based compensation importantly. We ended 2019 with approximately her and eight point five million dollars of federal net operating loss of life which are available to offset future taxable income.

As a result specifically as it relates to twenty twenty. We do not expect to pay any federal income taxes.

Now, let me spend a few minutes reviewing our balance sheet. We ended the quarter with two hundred ninety, four point two million dollars of cash cash equivalents and available-for-sale short-term Investments.

This represents an increase of sixty five million dollars over a year end 2018 and was primarily driven by positive cash flows from our University operations and reduce operating losses. God created with our clothes campuses.

Net cash provided by operations. What's 73.1 million dollars for the year as compared to cash provided of $57 for the prior-year?

The current your cash flow was primarily driven by the factors. I just mentioned partially offset with the cash outflows related to the legal settlement payments of $35 for the Dead Sea and the multi State Attorney General matters.

Expenditures were approximately 5.2 million dollars for the year as compared to 6.7 billion dollars in the prior-year.

For the full year twenty-twenty. We foresee Capital expenditures to be approximately 2% of revenues.

A quick note on the pending acquisition of private university as Todd noted. We expect the acquisition to close in early March 2020 and are already diligently working towards a smooth integration for the incoming students and employees.

We expect the transaction to be created to our 2020 earnings.

Crichton's operating performance continues to be strong and as a result, we now expect to pay a cash purchase price at the high end of our previously provided range of $35 to $44,000 along with the reimbursement of certain employee related expenses of approximately 1 million dollars.

Finally, let us discuss the organic growth outlook for the full year 2020.

This Outlook reflects among other things the company's expectation of growth in new and total Romans at both universities for the full year 2020.

Our outlook for the full year consists of the following.

147252000000 in total company adjusted operating income as compared to 134.3 million in 2019.

This is consistent with our overall objective of sustainable and responsible growth this Outlook contemplates Investments to further improve student experiences retention and academic outcomes.

Please note that this Outlook excludes the impact of trident acquisition.

Adjusted earnings-per-share is forecasted to range between a dollar for dollar a dollar Forty Nine per share versus the dollar 37 2019.

as it relates to our first quarter Outlook

first quarter 2020 Outlook reflects the company's expectation of growth in first quarter new student enrollment at CT you however for the first quarter of 2020 Chef have approximately Thirty 1% Less in Roman days while the second quarter will have approximately fifty percent more enrollment days as compared to the respective or lie. In 2019.

We expect a I use new enrollments to decline in the first quarter, but this decline will be more than offset by growth in the second quarter.

For the second half of 2020 we expect the enrollment dates to be comparable for each quarter as compared to the respect to Prior quarter.

We expect adjusted operating income for the first quarter of 2020 to be in the range of 37 and 1/2 million dollars to $29 and adjusted earnings per diluted share to be in the range of a thirtieth month sentence.

Please refer to our earnings release 5 today for important information about the key assumptions and factors underlying this Outlook and other expectations discussed on today's call as well as the gaap to non-gaap reconciliations.

Lastly we will continue to maintain a balanced Capital allocation strategy that focuses on maintaining a strong balance sheet and adequate liquidity while touring the investing in organic growth projects with such as students learning initiatives and evaluating diverse strategies to enhance shareholder value, including share repurchases and Acquisitions of quality educational institutions and programs.

ultimate

Our goal is to deploy resources in a way that drives long-term shareholder value while supporting and enhancing the academic value of our institutions with that. I will turn the call back over to Todd for his closing remarks. Thanks. She's are positive results in 2019. And the progress we have made thus far demonstrate the success or operating strategy than Focus was on student experiences retention and academic outcomes. We are experiencing sustainable responsible growth at both universities and are staying true to our core focus of investing in students serving process with the goal of positively impacting academic outcomes and student experiences. I believe we are well-positioned both from a competitive and operating standpoint to serve and educate current and prospective additional students with a focus on adult Learners and to build a leadership position in online post-secondary education.

We are entering 2020 with momentum, and I want to thank the entire team for their hard work commitment and dedication. Thank you again for joining us today and will now open the call for any analyst questions. We will now begin the question-and-answer session answer for analysts to ask you a question. Do you may press * then 1 on your touchtone phone. If you are using a speaker phone, please pick up your handset before pressing the keys off. If at anytime your question has been addressed and you would like to withdraw your question, please press star then to our first question will come from Dan more with c j s Securities, please go ahead.

Thank you. Good afternoon. Thanks for taking the questions.

Hayden how you doing. Very? Well, thank you Todd and she wanted to start with I guess corporate partnership programs last quarter. I think you mentioned wage, you know incremental increase investment in in in that area in 2020. Is that still the case built into guide? And if so, what might those incremental Investments look like? Okay. Well, the good news is we mentioned that with C to you now up to 19% of their enrollment. So that's been a nice increase and we've as you know, we've made some investment in that and and this coming year. We're also making in investment. We haven't given any outlook on where our projection would be but we know this is a very it's a very needed program within you know, not just Academia, but also in these companies again, they're ability to have a partnership with an institution that's you know focused on helping them. So our plan is going forward to not only you know, invest obviously and see Hugh but as well in this area

Very helpful, maybe just talk a little bit about obviously Trident sounds like you expect it's closed here imminently and Faith toward the higher end of the purchase price. So it's any more color detail on how they're performing. Number one and number two beyond beyond that acquisition, you know update on the on the page line of additional potential m&a is we look out the 2020. Okay. Well as we said, you know, we do hope that it will be you know, in the first part of March. We we are pleased with the results Thursday and as as as she said based on those results that will be at the high end of you know, where we have said that purchase price would be beyond that probably can't comment anymore in it. We would hope that as things continue to progress that we would then be able to provide an update on on a new outlook that our next earnings call that would include the performance of trading as well. So at that point

He'll be able to get more Colour than we can today.

Another very good then as far as the second part of your question on the pipeline. Yeah, we continue to be very active in that area. There are a lot of not only Public Schools universities, but there are also other companies that are involved in the education area that look very appealing. You know, we want to as we did this be very strategic a very disciplined and not to that but you know, we continue to be looking for the best ways to you know, to to enhance overall padosi. Oh, but also, you know provide good shareholder value on those types of acquisitions.

And lastly as a corollary to that in terms of capital allocation any commentary on how aggressive you might be with the repurchase authorization that you do have in place if if stock were Thursday in and around current levels.

Well, I don't want to really give any projection on what that would be but you know, we we have a lot of faith in the company and we think that is you know, as we mentioned when we were able to get the buy back approved that continues to be something else will you know continue to utilize?

Yes, and it will continue to make sure we evaluate on a daily basis and just make sure that we allocate capital in the best interest of the company and the shareholders.

Appreciate the color. I'll jump back with any follow-ups. Thank you. Thanks, Dan.

Our next question will come from Alex Paris with Berrington research, please go ahead. Hi guys. Congratulations on a strong strong fourth quarter of 2019.

I got a few questions tried it again just to reiterate you expect to close that in early March. I should have all the requisite approvals that you need. You were just waiting on the Department of Education now, is that correct? We we is you know, there's multiple approvals you need from you know, whether it's the state wage. Obviously you're a creditor and and then the department and we're just waiting on the final four the department and that's it. Got you. And is this a pre-approval for the air conditioner? Is this kind of a a more thorough approval? I know the department of education. Does it a couple of different ways?

Well, not really sure what that you know again how to answer that part of the question. I don't understand it fully but I know once you have the accreditation approval that's when you actually look for the formal approval of the department anything before that like a pre act that you're probably referring to. Yeah, but again that after you have your accreditation approval which is necessary before then you're actually looking for them to final approval. I got you. Okay, and then with regard to the performance you said performance or tried? It has been good. I guess the last date of that we had was the physical year after June 30th 2018 when revenues were $46 million and ebitda was 9 million as I recall. That is correct, Alex. Okay good and and then you did say choice that you

That tried it to be uh a creative to adjusted operating income in 2020 a creature earnings in 2020. That is correct. And as Todd mentioned as we move forward, we will give you more updates as deem appropriate most likely on the next conference called the first quarter. Yeah, the the sequence would be what we would hope is that once we get all of the final approval in place, then possibly issue, you know an 8K around that and a little bit about their performance, but then would not be able to provide an Outlook at that time because it would be well just a couple of weeks you wouldn't have the chance to do that, but then we would hope to be ready by the the may be call call.

Well, I think we all take comfort in the the the Outlook that it's going to be a creative. So and and that's why again without you know, again, we want to be careful the information we provide as you know from the prior information that was out there. If we're paying at the high end of that that gives you a pretty good indication of at least what we're what we're hearing where they are.

Gotcha, shifting gears a little bit your corporate relationships. Are you up to 19% of total population up from 16 per month in 2018. It's a number you get this once a year. Do you have an update on a I use corporate partnership? I know that they kind of started that process after CTU they did and and we continue to invest that we're actually very hopeful this year. They've got some very talented people that they've brought into the process. The investment has been made and and so we're again, although we haven't provided any update on on where they are from a total student count. We're very optimistic about this year. They have a lot of good things in place great to here just to follow up on the repo question. I don't have the pressure leasing office. Did you do any share repurchasing in 2019 or in the fourth quarter? Yes. We did. We did purchase in the fourth quarter on just about under 250,000 shares.

in an average price of

$10.49

Great, and then what is okay, and then what was just remind me. What was the total authorized amount by the board game?

So that means you got fifty six million or forty six million left. That is correct. And then at your investor day you had given organic growth goals for a 2022 you said mid-single digit Revenue growth high single-digit to low double-digit adjusted operating income growth adjusted operating income margins of 22,000 + by 2022 driven by mid single-digit new student enrollment growth has anything changed there or you giving an update to that at all anytime soon know again this point obviously the Outlook we gave today is is is is the Outlook and then obviously if they're our future investor days, you know, we would we would hope to update that but at this point the Outlook we provided today is Thursday. Okay, that's great. And then last little nitpicks or the question the the arbitration settlement for 7.1 million dollars. Is that been paid yet? Or is that going to get paid in the first quarter? I think you had said previously.

in the first quarter subject to

Certain approvals and so on. Yes, we expect to pay that in the first quarter. Okay, but the others have been paid the State Attorney General's and the FTC that's all been paid State Attorney. General's was played last early last year. And in the fourth quarter of 2020. Sorry. Okay, great. And then let me just one last one here. And in your response to the first question on m&a you continue to be very active looking at both schools and universities, but other education companies, can you give us some sort of idea what other education companies should look like? Sure. I mean, I think if you look out there those things that are related to what we do. So for example, certain educational technology initiatives that we're seeing but also those that are offering certification type programs that we educate a lot of students that are looking for those types of programs. So the ability to log

those two I think would be

Some real Synergy not just maybe in cost savings, but also I think as far as future Revenue growth because of the connection there.

Great. Well, that's helpful. I appreciate that additional color. And again, thanks for answering my questions and congratulations on the core Bangkok.

Our next question will come from Greg prendi with sidoti, please. Go ahead.

Thanks for taking my questions just one. She could you just clarify? I think you said you would be down in 1 Q in up until Kia was that new or total student enrollments are both no new student enrollments. We do not talk about total student enrollments on a quarterly basis. So what I refer to down to one up to you, too often Certain Romance and on a combined basis, we expect that to grow.

Got it. That's helpful. And then also could you just kind of talk about the marketing plan in 2020? I know a lot of peer companies are sort of Shifting to more of a focus on life and you feel that you know, what you achieved last year. It's pretty much going to be a consistent plan in 2020. Yes, in fact, you know again, we we've had good success this past year and and our process and so we're going to continue with that that we've also had meetings with some of our providers that I believe are going to also enhance that it's hard to give any outlook on with that reduce marketing costs or that nature. But again, we think you know improving on the quality of the the lead but also continue to you know, provide the pipeline of those leaves, but again wage success in the past year, but we some of the things we're working on the marketing team. We think should be and could have some positive results for this coming year.

Okay, great. Thanks a lot. Thanks Greg. Thank you.

This will conclude our question-and-answer session. I would like to turn the conference back over to Todd Nelson for any closing remarks.

Again, thank you for joining us and we look forward to speaking with you next quarter.

The conference is now concluded. Thank you for attending today's presentation disconnect.

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