Q1 2020 Earnings Call
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Thank you Jesse good afternoon, everyone and thank you for joining us for first quarter 2020 earnings call.
With me on the call today, Todd Nelson, President and Chief Executive Officer, and Ashish <unk> Chief Financial Officer.
This conference call is being webcast slides within the Investor Relations section at <unk> Dot com.
Cast replay will also be available on our site you can always concept yelp biomarker for Investor Relations support.
Let me remind you that this afternoons earnings release, some remarks made today.
These forward looking statements as defined in section 20, Onee of the Securities Exchange Act of 934.
These statements are based on assumptions made by an information currently available to base you education and involve risks uncertainties that could cause actual future results performance.
Yes prospects and opportunities to differ materially from those expressed in or implied by these statements.
These risks and uncertainties include but are not limited to those factors identified and produce used 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 security laws. The company undertakes no obligation to update those factors or any forward looking statements to reflect future events developments or changed circumstances for for any other E.
In today's remarks refer to non-GAAP financial measures, which are intended to supplement but not substitute for the most directly comparable GAAP measures.
Your earnings release that accompanies today's call contains financial and other quantitative information to be disgusted as was the reconciliation of GAAP non-GAAP measures that's available within the Investor Relations page of the company's website with that I'd like to turn the call over to Todd Nelson thought.
Thank you Brett good afternoon, everyone and thank you for joining us on todays call.
Before I discuss the quarter, let me first acknowledged the unique challenges as well the social and economic impact that cobot 19, and Dennis has presented to our communities.
Did I point to help and well being of our students employees and communities is our top priority.
Being a primarily online learning institution, most first students for already taking classes online further with the help of our scalable and innovative technology infrastructure campus based students are also now taking classes online.
Additionally, we have transitioned to a remote work environment and provided our employees with the tools and resources necessary to work remotely.
<unk> 19 related costs and other impacts to us, thus far including caso transition students and employees to remote environment.
Our not material to our operating results.
We're also closely monitoring all aspects of our operations and we'll strive to serve our students well, while promoting the health and wellbeing of our employees and communities.
But that background, let us discuss the quarter, we entered 2020 with positive momentum both at both universities, which resulted in first quarter results that came in ahead of our expectations.
This highlights our execution against the objective of sustainable and responsible growth.
Some key operational highlights include.
First growth in quarterly revenue and operating income versus the prior year quarter.
As we continued to prior size investments in students serving processes and initiatives that positively influence student experiences retention and academic outcomes.
To enrollment trends at both universities continued to be positive, reflecting sustained levels of prospective student interest, which was well served by our student support infrastructure.
Three.
Our previously announced acquisition up substantially all the assets have tried University International was completed in early March were referred to this asset acquisition transaction as that Trident acquisition for the remainder of today's discussion.
We've been working proactively on a smooth integration of triton's academic programs into a are you and are pleased to welcome their faculty student staff into our organization.
That's right and acquisition enables the combined institution to continue serving existing and future students with a broader range of program offerings and resources and is in accordance with their strategy to evaluate acquisitions of quality educational institutions and academic programs and lastly, while transitioning students.
And employees to remote environment, we continued to strategically invest in our students serving functions and look to further enhance and improve our technological capabilities.
Enable our staff to better serve and support our students.
Oh expand further on some of the successes of the quarter. Shortly Ashish will then cover more and more detail around the financials and provide an out update of our 2020 outlook before I add some closing thoughts to end the call.
Now to our operating performance for the first quarter.
We reported net income of $29.1 million or 41 cents per diluted share while adjusted earnings per diluted share, which excludes certain significant and noncash items that was 42 cents.
Adjusted operating income was $40.8 billion, a 23.7% increase from the prior year quarter with the improvement primarily driven by revenue growth at our universities.
We continue to focus on student retention engagement and academic outcomes across our academic and support teams and I believe that we're well positioned to serve and educate current and perspective non traditional students including adult learners.
Both universities experienced enrollment growth for the quarter, but total student enrollment up 12.3%.
At Sea to you total enrollments as of March 30, Onest 2020 increased 4.8%, primarily due to new enrollment growth of 16.8%.
We are encouraged by these results that were supported by an increased level of efficiency within see to use student enrollment process.
Employee tenure for various student support functions is increasing and our teams are using technology to provide the most effective and relevant support to our students.
See you continues to maintain its corporate partnership program and its coordinating with our current partners to best serve their students during these uncertain times.
Our dedicated team Collaborates with our corporate partners to offer academic programs that center around the organizations educational priorities, which makes these partnerships mutually beneficial.
We have experienced improved efficiencies by sea to you as a mission to academic and advisement teams, which had been augmented by advanced technology tools.
With student experiences in mind. These teams are also focus on further improving core sequencing and orientation to promote greater student engagement and learning overall, we're pleased with the continued success of these various initiatives and investments as CTO continues to efficiently and effectively serve current and prospective students.
Now turning to add value.
Total student enrollment as of March 30, Onest 2020 increased 26% as compared to prior year as a result of the Triton acquisition.
As a reminder, quarterly enrollment results were significantly impacted by air use academic calendar and the resulting number of enrollment days in any given quarter.
There were approximately 31% less enrollment days at a are you in the first quarter 2020 versus the prior year quarter.
The negative impact lessen Roman days was partially offset with the positive impact of the Triton acquisition and resulted in a 14.2% decline and new enrollments versus the prior quarter, but even after excluding these this variability in enrollment days and the positive impact from frightened acquisition. We believe a are you.
Continued to experience underlying organic growth and new student enrollments, which also contributed to revenue growth in the first quarter.
We continue to invest in air use admissions advisory and financial aid functions are gradually team today or you are well equipped to serve prospective student interest utilizing a holistic method to support students through the admissions and financial aid processes and our financial aid teams continue to focus on getting students financially prepare.
Before they start school.
Increasing use of technology is enabling the advising teams to provide relevant support to our current students and we're seeing positive signs, but that our student engagement process.
Overall, we're pleased with air use progress and its efforts to effectively and efficiently integrate the Triton academic programs students faculty and staff into its operations.
Even in the midst of transitioning our students and employees to remote environment technology in general continues to be a focus of our effort to serve and educate students.
We are expanding it used to help customize the enrollment outreach and learning processes to provide a better experience for our students a student and faculty mobile App data analytics, using AI and machine learning and a customized student enrollment process, our current focus areas within technology.
I note on the Corona virus aid relief and economic Security Act or care Zac and its positive impact on our students under the cares Act. The department of Education has provided funds for students to assist them with the financial challenges and disruptions. They face in a sudden closing a campus. These funds were to be awarded to have two students.
And have to the institution. However, both seat you an air you will not be keeping any of these funds for the institution, but have committed 100%. These funds to our students to assist them in light of Coven 19 pandemic.
To conclude I'm extremely proud of the faculty and staff at both universities, who have undertaken various measures and precautions to help keep our community safe, while still delivering on their commitment to student support and education, our faculty and advising teams have experienced increased engagement with current students and are closely working with those who have been.
Directly or indirectly affected by the pandemic, providing them with the necessary flexibility and support as they work to complete their education of study.
The hard work and dedication of our employees is helping us navigate these uncertain times well fulfilling our commitment to our students.
These efforts are exemplified by our consistent operating performance and we believe our universities our position to execute well against our objective of sustainable and responsible growth in 2020.
A quick update on the letter from the U.S. Department of Veterans Affairs, or V.A., we've provided the VA with the detailed information about our current processes, which we believe should demonstrate to the V.A. that we're in compliance with the requirements.
And that any necessary corrective action for any deficiency. They have identified and their letter was previously taken the V.A. has extended the period of their review by 30 days to June 7th 2020, we intend to engage in a dialogue with the VA. During this period and are eager to resolve this matter quickly.
With that I'd like to hand, the call over to she's for more detailed review of our first quarter 22, and a result balance sheet and updated 2020 outlook, which now reflects the Triton Triton acquisition among other items Ashish.
Thank you Todd.
I will review the first quarter 2020, <unk> results and then discuss our balance sheet and update it 2020 outlook before handing the call back to talk for his closing remarks.
All comparisons are versus the comparative prior year period, unless otherwise stated.
Before I begin a quick comment on the year over year comparable Eddie.
Beginning March 2nd of 2020 operating results for AI, you will incorporate the quite an acquisition.
As Todd mentioned, the first quarter results reflect the positive momentum coming into 2020.
Total company operating income was $37.3 million.
An improvement of $7.2 million or 24.5% as compared to an operating income of $30 million.
We believe adjusted operating income, which excludes certain significant and noncash items is more reflective of the underlying operating performance.
This measure increased 22.7% to $40.8 million for the quarter and was above the high end of our outlook range of 37, and a half million the $39 million.
Even if we worked we exclude the positive impact from the Trident acquisition.
Net income for the quarter was $29.1 million are 41 cents per diluted share.
Adjusted earnings per diluted share, which we believe is more reflective of the underlying operating performance was up 16.7% to 42 cents per share.
The improvement in operating performance was primarily due to does revenue growth at both universities, reflecting underlying enrollment growth that was well supported by our students having operations.
Also benefiting our first quarter results was the Triton acquisition, which closed on March 2nd.
As well as timing of certain operating expenses.
Some of the cost items, partially offsetting these positives were investments in marketing and students during functions.
And costs associated with our compliance monitoring efforts.
Now onto more specific details around a quarter.
Total company revenue increased by $13.1 million or 8.3% $271 million as compared to the prior year quarter.
As it relates to our segments.
Revenue at Sea to you was up six and a half million dollars or 6.7% to a higher in $3.6 million for the quarter.
Supported by positive enrollment trends.
Operating income of $34.6 million was up 16.6%.
From an expense perspective, CTO continues to be diligent in prioritizing spend towards student support initiatives with efficiencies across various administrative probably safe offsetting incremental investments in marketing.
The revenue at a are you increased 10.9% to $67.4 million for the quarter supported by growth in underlying enrollment trends.
As well as declined an acquisition.
Partially offsetting the revenue growth was increased investments in marketing and student support processes.
Also included in the first quarter results were certain restructuring and integration costs associated with the quite an acquisition.
The resulting operating income up $9.4 billion was up 12.8% from the prior year quarter.
A quick note on bad debt expense for the company.
We continue to invest resources to help students financially prepare for school. So that they are more likely to complete their program of study.
On that note bad debt as a percentage of revenue is relatively flat as compared to the prior quarter and prior year quarter.
Why do we still expect fluctuations we are encouraged with these recent results.
Moving to enrollments.
Total student enrollments at sea to you grew by 4.8% supported by new enrollment growth of 16.8% versus the prior year.
As Todd mentioned this enrollment growth is reflective of the consistent levels of prospective student addressed that are being let's start by investments in our admissions and rising functions.
Looking forward, we expect new enrollments at sea to you going to second quarter and for the full year of 2020.
Total student enrollments at AIU increased 26% for the quarter due to the Trident acquisition.
New enrollments decreased 14.2% for the quarter as a result of the academic calendar, which negatively impacted the number of enrollment days for the quarter.
Excluding the impact of the client acquisition. He was new student enrollments would have decreased 22.9%.
Order with 31% less enrollment days than the prior year quarter.
There tends to be a strong correlation between the new enrollments and the number of enrollment days in any given quarter.
And we therefore believe areas for first quarter, new enrollment results reflect underlying organic growth year over year.
Recall that the academic calendar at AI, you specifically the number of enrollment days in any given quarter has a significant impact on the new student enrollments for that quarter.
As a result of this timing impact.
We expect new enrollments at AIU to show significant growth for the second quarter, primarily as a result of approximately 50% more enrollment days as well that the quite an acquisition.
This increase is expected to more than offset the decline in new enrollments from the first quarter of 22 any.
Especially on a combined basis.
Are you is expected to show growth for the first half of 2020, even after excluding the positive impact from the flight and acquisition.
A quick update on corporate and other.
This category includes residue will operating losses associated with goals campuses.
Operating losses associated with close campuses, where approximately $1 million in the first quarter as compared to $2.8 million in the prior your quarter.
The improvement primarily driven by lower professional fees associated with legacy legal matters.
Now to income taxes.
Recorded a provision for income taxes of $9.6 million for the current quarter.
Which resulted in an effective tax rate of 24.8%.
The tax rate for the quarter, what's benefited by approximately 1.9% related to the release of tax reserves and the tax effect of stock based compensation.
Or 2020, we expect or tax rate to be between 25.5% and 26.5%.
And we are not assuming any material benefit related to the release of tax reserves.
And the tax effect of stock based compensation.
The floor your estimated tax rate is expected to be negatively impacted due to changes in tax reserved and the tax effect of expenses that are not deductible for tax purposes.
Separately, we ended 2019 with approximately <unk> $108.5 million, a federal that operating loss carryforwards, which are available to offset future taxable income.
As a result, specifically as it relates to 2020, 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 $285.6 million of cash cash equivalents restricted cash and available for sale short term investments.
Which will be referred to as cash balances for the remainder today's discussion.
This represents a decrease of $8.6 million, what what are your in 2019.
Key drivers of cash in the quarter are.
Positive cash flows from operating activities, which already reflect payments made in relation to the settlement of Oregon Arbitrations matter.
What offset by cash flow is related to the Trident acquisition and the repurchase approximately 1.3 million shares for a total of $17.3 million and then average price of $13.48 per show.
Capital expenditures were approximately $1 million in the first quarter as compared to half a million dollars in the price of your quarter.
For the full year 2020.
We foresee capital expenditures to be approximately 2% of revenues.
We completed the acquisition of substantially all of the assets of Pride in University International or March 2nd and our diligently working on a seamless integration for the incoming students faculty and staff.
The final cash purchase price is expected to be approximately $44 million, which includes an estimate for working capital and is subject to final adjustments pursuant to the purchase agreement.
We have already paid approximately $38 million through the first quarter of 2020.
However that I'm only includes $4 million deposited into an escrow account, which is reflected as restricted cash on her balance sheet.
Overall, the company's executing well against as objective of sustainable and responsible growth with investments and students are being initiatives and technology showing positive results.
Finally tour 2020 outlook.
We are updating or outlook to reflect the <unk> back from their frightened acquisition end to end corporate known cost estimates related to restructuring and integration efforts.
Further the outlook does not contemplate any material in back from coal, we'd 19 on our future results.
Based on the indicators and trends we have observed to date, but includes known costs associated the decor, we'd 19 efforts.
You updated for your 2020 outlook is that falls.
So you're adjusted operating income to be in the range up $151 million $255 million as compared to $134.3 million in 2090.
This is consistent with or oral objective of sustainable and responsible growth.
Adjusted diluted earnings per share is forecast it to range between $1.49 and $1.53 per share.
Versus $1.37 in 2019.
[noise] for the second quarter outlook.
Or second <unk> outlook reflects the company's expectation of growth in new sort enrollments at C.T.U.N.A.I.U.
Yeah, I use near enrollments are expected to show significant growth you 250 per cent more enrollment data in the second quarter of 2020 as well as defined an acquisition.
Further the company expects adjusted operating income to be in the range of $38 million to $40 million versus $32.8 million in the <unk>.
<unk> earnings per diluted sure to be in the range of 36 cents to 38 cents versus 34 cents in the <unk>.
Please refer to the earnings release file today.
More important information about key assumptions and factors underlying this outlook.
I don't expect nation discussed on today's call and the gap to non gap reconciliations.
Would that I would turn to call back over to Dot four is closing remarks taught.
Thanks Ashish.
Pleased with it first quarter operating results as we continue to execute on our strategy. While the current uncertainty presents a challenge or communities in the world large we will continue to our focuses on positively impacted student experiences.
Attention an academic outcomes, we're focusing on the well being of our students and employees.
I believe we're building a leadership position at online post secondary education, and we're well positioned to serve and educate current in perspective nontraditional students with a focus on adult learners.
Thank you again for joining us today and will now open the call for any analysts questions.
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That's nice question comes from again.
He can't guarantee he's go ahead.
Hi, Good afternoon, it's people who gets for Dan.
Start with the Big picture question can you talk about what you've learned so far from Trident now that you've had the chance to get under the Hood for the last several weeks anything special stand out at you there.
Thanks Hope everything as well with you and your your family.
Yes, the thing that probably has been most encouraging is the the quality of their their their team their staff. Other faculty. We're we're very encouraged by again their understanding of the industry and again their ability to continue to execute execute an operate in in an integration.
Typesetting I think that's always been a concern when you have to institutions coming together, but I do think that shows again, the maturity of and the experience of their team as well as that of A.I.U. and and for those you know those support Susan services. So that's far we expected it but I I didn't think it would be going as well as it is.
We're optimistic as well that.
As we get later in the year the ability to benefit from the breadth and depth the programs that they'll bring to us. So that's far we're we're very encouraged.
Oh, that's great congratulations again on that.
And if you could just remind is what percentage it'd be students across the board C.T.U.A.I.U., including tried and have their education, partially or fully funded by their employer and are you seeing any measurable up take interchanges in that with the high unemployment there now.
We we haven't I don't but she's coming on I don't think that we've disclosing that this quarter, we had last quarter, which we did a percentage, but I'm just in general we'd not to to this point noticed any material change in in our relationships with those corporations providing reimbursement.
Obviously, we'll continue to monitor that as the here goes on and as we see how long. The you know the pandemic last and the impact on that but at this point you know nothing meaningful meaningful as far as a change she's do you want to add to that.
Oh sure as thought mentioned, we don't disclose anything 'cause quarter, but for your end or 19, we did say about roughly about 19% of enrollments at C.T. you come from such partnerships and yeah, you as much lower than that.
C.T. and a great very helpful. Thank you and then if in fact that they were to become an issue in terms of the unemployment, creating a problem what other labors Ah do you think could you still poll a to prioritize profitability.
Well again I think that you you know, we we have an enrollment stuff in our ability then if we if we were to see I I, maybe a pull back and some of those areas. The corporate areas, we would redeploy those resources and areas that other areas of that are not in the corporate area or the reimbursement area.
But again those resources still available you know to do that but as far as you know we continue to work with those companies to see if there's other things we can do to help but again at this point very difficult to say depending on how long you know how long the situation goes.
Oh, great. Thanks, and last one for me just one on the numbers question in terms of the guidance looks like a adjusted operating income and adjusted D.P.S. went up modestly approximately 4 million operating income and I think four to five cents adjusted D.P.S. Despite the addition of Trident, which I believe carried in eight to 10 million D., but Don.
Manual basis or you building in some incremental.
Wins or just do you think kind of being conservative.
Well again like I said I, it's only partial year. So we don't you you're right. We don't bring in a full year of that that's number one and number two there there are some of associated integration costs that you'd expect and I think we we want to be you know cautious, especially as we you know combine the two that that we're not.
Too overly optimistic about the contribution this year.
She she want to add to that.
No I think that's it and also has you know as we mentioned the outlook also incorporate some known costs associated Kobe. It. So once you take that into account. The fact that it's a partially or in addition, we have some integration costs restructuring costs I think that's sure to account for for the matter.
Very helpful. Thank you and congrats again on the quarter.
Thank you.
<unk>. The next question I'm trying to Alex parents.
Research teams go ahead.
[noise], Hey, guys how are Ya.
Good good and hope Everything's, where with you always family Yup Yup Everything's. Good here hope the same for you guys I wanted to congratulate you on a on a beep and raise quite rare in this environment.
Over the last couple of weeks.
I wanted to talk to you about the top of the funnel.
You noted.
The previous question that you haven't seen much change from your existing relationships with corporate partners. What is the top of the fun to look like you know one could argue with everybody being home. There's more time to go to school in like one could argue in the long run you know online it's gonna be more more accepted.
But there are people at home you know worried about their jobs worried about money. The kids are running around have you noticed any changes positive or negative to the top of the final in terms of inquiries leads and then the impact of your investments on conversion rates.
Yeah, it's interesting because again I and it's such a good point you make I do think that at least from my prior experience that and this type of environment, there tends to be a higher level of interest from prospective student's mostly because again, there's I think there's a certain amount of are concerned that we all feel and there's a reason why thing you know.
People are trying to improve themselves, they're they're marketability their ability to get jobs keep jobs those kinds of things. So typically you would see that I I think from our lead flow, we haven't seen any disruption probably a little bit of of it and in increase but again I would see the best way to say is consistent with with a slight amount of of improvement.
And as far as again from a you can see from a a new student perspective from the results. This quarter it was very encouraging.
Given the length and depth of obviously the challenge that the overall economy is going to face it's hard to it's hard to predict where that's going obviously, but I do think that with people. As you said just you know time at home to focus on on our ability to deliver the class.
<unk>, you know or wherever they are remotely is certainly to our advantage and and to their advantage as well. So again hard to say you know how how that will be throughout the rest of the year, but you know our hope is that life, we'll get back to normal soon but in the meantime, you know again, thus far we're seeing it on that the top of the funnels you said continues to be.
A a stable to encouraging.
Right and then corporate students inside.
Any anything noteworthy and stop pilots or dropouts.
It's cold dead situation started versus your normal expectations.
Oh good question again relatively stable again from retention perspective, you know I would say we're you know we're encouraged by things we haven't really seen any <unk> negative impact, but let me just to see if <unk>, if you'd like to add to that Oh, no I didn't I think nothing nothing from my end I think a as taught mentioned is relatively stable and.
And we are watching all the trends are very cautiously ah, but so far nothing that jumps out.
And then the last question in that series of questions.
How about the campus they students I realize it's not a big number it's a small number 80 or 95 per cent online you know across for universities, but those who have been forced to move fully on my anything noteworthy their stop outs refund requests you know anything like that.
I have kids they go to traditional schools and you know the 18 to 22 year old range and in every parent I talked to says Hey, Where's my discount assuming that there should be some discount associated with online which is not the case, we all know that the costs are pretty comparable.
Yeah, it's interesting because you're right I'm over 95% of our students you know being online already it was not difficult to to migrate those on grounds students do you know to an online format and she should not I've not seen any additional refund requests over normal have you I mean again I did not.
Look at that specifically, but if you no no not to our knowledge and I haven't seen it either.
You know one of the nice things about it is that's obviously would be the first area that as things get back a little bit more to normal to be able to bring back. Those students you know the the states that we do have locations or campuses are probably states that have not been impacted as bad as some of the other states for examples you know a joke.
<unk>, Texas and Colorado those are the only we have four campuses in those three states and so again there the environment.
A little bit more conducive when that time comes but at this point again, so far you know the students had been engaged in in the on Grand locations in online environment.
He used to be clear <unk> have you announced in that you're returning to campus at any of these campuses it'd be set a date for that are you still kinda watching.
We we have not we we have had some discussion with certain programs in in our Atlanta School and have had obviously I'm looking at a few things in Texas, but at this point not a definitive date now.
And you know, it's it's sometimes yeah I I think one of the companies that reported recently.
Said something along the lines up but you know crisis could sometimes create great opportunity and there are already very strong long term trends towards online and and this particular company said this should accelerate it you know put forward demand for online <unk>, which bodes well.
For for for Dosia first off but.
But during this period of crisis have it <unk>.
Any traditional university reached out to you you have in your expertise in on line given your your strong shared services operation for help and I know I know in the past you talked about maybe creating an online a hybrid online program manager you know in the future this could be just that.
Opportunity you know maybe when the crisis is behind this to be able to offer those services on a fee for service bases, the traditional universities going for any conversations there or any.
A a new thoughts with regard to hybrid poodles Ya.
We we have not had a any discussions as a result of this to this point I I do think as you said, though there there are some opportunities here because again of our experience of managing a very are large online operation with with good academic outcomes and I think as.
More universe traditional you know universities with large on ground.
The numbers, they're going to need to not only looked to having an online platform, which is most of them do but but how do you find a platform to accommodate some massive number of students instill produced the level of outcome that we've been able to as well as have faculty prepared and trained to you know to teach in an online and.
<unk>. So again to date of not you know had any discussions, but I do think that there will be some future opportunities because I think they're seeing one of the at least from things we've seen that in his they've moved it online some of the challenges that they're now experiencing.
I think it would make since for them to look to working with a partner that understands how to to deliver that for you know large numbers of students.
Great well. Thank you again, thanks for taking like questions and way to go on the beach.
Thank you <unk> Oh six.
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The next question comes on the grade pending what's the county.
But.
My question Huh real quick how should we be thinking about revenue per student or a Yale just giving the try the an acquisition.
I have versus the prior year and just I guess within this quarter the down tech reflective of just a partial partial contribution from Trident, what the March close.
She she went to address that sure yes, Oh, so from our revenue per student I think a great. The best way to be look at to look at historical trends and as with a a you wouldn't need to look at a couple of quarters together to normalize those trends and yes to your plane for this quarter the denominator like we'll have.
Total all of these students at frightened, but you will only have one month of revenue. So that we'll have some noise in there. So you are spot on that.
Okay great.
And also.
Integrate small with problems and give them the calendar and also <unk>, maybe a a different schedules caught up.
<unk>.
Well, you've worked through or something but.
A bit about immigration rough over the mobile next quarter. So.
Well they they they will keep their same calendar.
Trident will again, because they're you know they're they're model is is a little bit different and so we don't want to disrupt that as you know, it's it's a much smaller institutions. So again it it it will have an impact, but not a significant impact but as a she said this this coming quarter. There was a significant amount of upside as far as number.
Of of enrollment days and 50%, so obviously or.
Expect a a big number as far as a year over year improvement and then the second half that has been factored in and and there's they again as he said Q3 to four we'll have a similar number of enrollment days you every year so be relatively stable with again the goal as we said as we continue to get larger larger amount of skill.
To hopefully have more of those quarters that are that are very similar and number of enrollment days year over year. So again I think short term you don't see much impact, but long term I think that does really assistant our ability to have a more stable academic calendar for you.
That's helpful. Thanks, a lot.
Thank you thank you Greg.
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Thank you thank you for joining us.
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