Q3 2020 American Public Education Inc Earnings Call
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Ladies and gentlemen, thank you for standing by and welcome to the P.I. reports third quarter 2020 results conference call.
At this time all participants are in a listen only mode. After the speakers presentation. There will be a question and answer session to ask a question. During the session you will need to press star one on your telephone. Please be advised that todays conference is being recorded if you require any further assistance. Please press star zero.
I would now like to hand, the conference over to your speaker today.
Seminole Ski Vice President Investor Relations. Thank you. Please go ahead.
Thank you operator.
Welcome to American public Education third quarter Conference call.
You know that accompany today's conference call are available in the events and presentation section of our website.
Please note that statements made in this conference call and any accompanying presentation materials regarding American public education. It's.
Subsidiaries for Matson University that are not historical facts may be forward looking statements based on current expectations assumptions estimates and projections about American public education and the industry.
These forward looking statements are subject to risks and uncertainties that could cause actual future events or results to differ materially from such statements.
Forward looking statements can be identified by words, such as anticipate believe seek could estimate expect intend may plan should will and work.
These forward looking statements include without limitation statements regarding the benefits of the acquisition of rats Nazi University.
The closing of the transaction and its timing.
Expected growth expected registration and enrollments expected revenue earnings.
Earnings and expenses.
Record financial results for Rasmuson University.
The ability to deliver a return on learners educational investment and plans with respect to recent current and future initiatives.
Actual results could differ materially from those expressed or implied by these forward looking statements as a result of various factors, including risks related to the acquisition of Rasmussen University and the risk factors described in the risk factor section and elsewhere in the company's most recent annual report on.
Warm 10-K.
And quarterly report on form 10-Q filed with the SEC as well as the company's other SEC filings. The company undertakes no obligation to update publicly any forward looking statements for any reason unless required by law, even if new information becomes available or other events occur in the future.
This evening, it's my pleasure to introduce Angela Sheldon, our Chief Executive Officer, and Rick Sunderland Executive Vice President and Chief Financial Officer also available for questions, Steve Somers, Senior Vice President of strategy and corporate development.
Now I'll turn the call over to Angela seldom Angie.
Thank you Chris.
Good evening, everyone and thank you for joining our call today.
Before I share details surrounding 80, IAI third quarter results I'd like to reflect on the gains and progress. He has made over the past year.
Just over a year ago. When I joined me began by evaluating every aspect of each business unit.
At 80, U.S. enrollment has been flat or declining for several years with only modest investments as the company thought to maintain margins.
Hondros has a leading position in Ohio, and one in the attractive pre licensure nursing education segment, but it was underperforming and had made some unfortunate decision in late 2018, which resulted in sharp declines in enrollment in 2019.
With the support of the board of directors, we set out to turnaround the business and to reposition the company for growth.
All while continuing to ensure that we put our students ambition and success at the center of all we do.
We evaluated the solid set of assets the company has built including the leadership position in both military and veteran market.
The company's strong regulatory reputation and established pre licensure nursing beachhead in Ohio, and a solid balance sheet from which to work.
What a year it has been.
The improvements have been wide ranging and dramatic.
We added key leaders and brought some additional experience to our board.
Overall, it was a year of transformation and acceleration.
At 80, U.S., we're especially pleased to have welcome waveguide as president to help guide the institution into its next phase of growth and improve our educational experience for students and faculty.
We prioritize modernizing our virtual campus, which is anchored by our learning management system more allomap by implementing into out and migrating as of this month over 1300 courses in nine months.
All 80 U.S. courses beginning in January 2021 will occur in our new element.
We also began a modernization effort of our student relationship management system or CRM to ensure that we can create appropriate transparency at each student touch points.
We prioritize marketing investments in 2020.
As the leading player in the military and veteran segments. Our student centric mindset has resulted in exceptional satisfaction scores and a 64% referral rate to prospective students.
Yes, we had more to do.
And implemented micro segmenting to attract those students with attributes that have proven in pls model to persist and complete.
The net result of our efforts this year has been a pronounced improvement in new and returning students at 18.
Yes.
While we have clearly benefited from the market shift to online learning, particularly among active duty military students.
We believe that the efforts we've undertaken will provide long term benefits and lead to sustained future growth.
While other leading online institutions those.
Those tax paying and not for profit significantly offense aipu last on brand awareness.
We intend to continue our discipline around more efficient and effective uses of our marketing dollars to continuously improving segmentation and analytics.
At Hondros under Harry Wilkins leadership, who is by the way as former CFO.
He has led the turnaround that can only be described as stunning.
Enrollment, which had declined by a third in the span of three quarters from fourth quarter of 18 to third quarter of 19 have fully recovered and exceed the high watermark that had been achieved two years prior.
This has made all the more remarkable by the fact that Hondros, which was a 100% on ground operation accomplishments turnarounds during the COVID-19 locked down some restrictions.
Harry and his team with assistance from May to U.S.
Pivoted to a hybrid model in a period of five weeks away.
Allowing hondros to continue academic progression uninterrupted in the second quarter of 2020 and beyond by offering academic coursework online and labs and clinical ground campus when others did not.
Congress has continued to enroll new students and train new nurses during our national Health crisis.
With this turnaround Hondros is now positioned very well for future growth.
Our CFO, Rick Sunderland will share the details regarding the financial turnaround that we believe resulted from the operational improvements during during his remarks.
Our most recent achievement is our.
Announced plans to acquire Brasington University.
I have prepared more detailed comments later in our call regarding the importance of this transaction.
But first I would like to take this opportunity to give you some perspective on the election and its implications for Sci.
While final congressional election results are still unknown.
No matter the outcome, we remain confident that 80, IAI and its subsidiary institutions are well positioned regardless of the political landscape to continue to deliver on our mission of helping students of all backgrounds maximize their 80 ROI.
Higher education return on investment.
We deliver high quality education at an affordable cost and do it by focusing on student outcomes.
Maintaining a strong reputation with students and regulators.
We believe that our focus on educating a listing military and veteran as well as creating new nurses are noble endeavors that change lives and improve society.
That won't change.
And we have continued to measure our performance as if Obama era regulations had remained in place.
With measures such as gainful employment, and 90 10, all achieving passing rates.
Even if 90 cents for other ratios are definitions change we feel comfortable that we will be successful in adapting to propose changes.
Moving to page three of the Powerpoint.
For our third quarter 2020 highlights enrollment momentum continued for the fourth consecutive quarter.
Strong enrollment growth at 80 reps and record enrollment at Hondros drove a 17% increase in consolidated revenues in the third quarter of 2020, as well as 11% growth in revenue for the first three quarters of the year.
Hondros has returned to profitability and H.U.S. generated a year over year increase in operating margin all while increasing investment in our technology transformation to improve the student and faculty experience and additional marketing to support the aipu as micro segmentation and messaging.
About affordability.
Our results this year, clearly demonstrate that 80 value proposition and helping learners of all backgrounds maximize their higher education return on investment or AC ROI resonates with today's value oriented students, including military professionals veterans and nurses.
Our AC ROI philosophy is shared by Rasmussen University.
Which we recently announced the plan to acquire.
As the nation's largest educator, a pre licensure nurses in ATM and PME program ramp.
Rasmussen adds another number one position.
80, IAI current number one position in active duty military and veterans do an education.
With this dynamic and transformative acquisition.
He will be better positioned as a strategic platform for adult learners prepare.
Particularly those service minded individuals pursuing profession with significant career opportunities such as nursing.
We will be paying close attention to the integration planning Rasmussen with a focus on unlocking new enrollments and cost synergies, while continuing to accelerate growth initiatives across our entire enterprise.
We remain focused on maintaining our organic enrollment momentum and delivering on our strategic priorities to enhance our offerings to all students and to increase revenue operating margin and adjusted EBITDA.
On page four for the three months ended September Thirtyth 2020 total.
Total course registration and that 80 reps increased 18% year over year, driven by a 25% increase in new registrations.
In January of 2028, Pos created and launched the freedom Graham for Am you students offering actuation reduction and free course materials for active duty military pursuing graduate degrees to ensure these students incurred no out of pocket costs.
To obtain a graduate degree this.
This now lines at the same no out of pocket pricing for undergraduate and lives military students at eight.
We believe the increase in registrations among active duty military.
Driven in part.
By the launch of the new Freedom brands.
Student persistence rates at both efforts say and not at the same students at 80 U.S. improved to the highest level in years as measured by the first course pass and completion rates of undergraduate students for the three months ended August 2020, the most recently available data.
In addition, I should note that three to 20 had one additional week of recruiting available to it as compared to last year, which we estimate added about 1000 registrations.
Even excluding those registrations for comparison purposes, the momentum was strong and we see growth continuing in the fourth quarter as well.
On page five we couldn't be more pleased with the rapid enrollment and return to profitability at Hondros.
This tremendous success highlights the importance of our strategic emphasis on pre licensure nursing program.
An emphasis that will be amplified by our acquisition of wrath of the University.
Third quarter 2020 enrollment at Hondros increased 38% driven by an incredible 88% increase in new student enrollment.
Hondros enrollment momentum continued into the fourth quarter of 2020 at Hondros recently reported an impressive 34% increase in new and total student enrollment the highest in the schools history.
Not only have total enrollments reached record levels, we're seeing even faster growth in Hondros is ATM or RN program further corroborating our interest in Rasmussen and its constant concentration in the AG and RN program.
Progress has continued to improve conversion rates and student onboarding processes with the deployment and integration of sales for software.
In addition, they have remained nimble in serving the nursing conneely after the pandemic and the resulting recession.
Their mission to provide a better way to become a nurse is both a mission and strategy and our direct entry ATM program, new tuition financing options and flexible scheduling seems to be attractive options for many prospective nursing students.
The recent success at AC U.S. and Hondros translates into strong financial results for HPP.
I will now turn the call over to our CFO, Rick Sunderland to provide additional details on our third quarter results.
Thank you Angie going on to page six American public education consolidated revenue for the three months ended September Thirtyth, 2020 increased 16.6% to $79.1 million compared to $67.9 million in the prior year period.
Increase was driven by an $8.4 million or 13.7% increase in APC segment revenue and a $2.8 million or 42.5% increase in HCM segment revenue.
For the fourth consecutive quarter net course registrations at a few assets have increased year over year, driven primarily by increased demand from students utilizing the tuition assistance.
We believe that the increase in new student enrollment at Hondros was due in part to an increase in demand for nursing education.
Change in the competitive environment to the Coca 19, an increase in marketing extended expenditures.
The continued impact of new initiatives implemented in 2019, such as the direct entry ATM program and the implementation of these two shuttle affordability grant in the first quarter of 2002 on it.
In the third quarter cost of expenses were $75.8 million, an increase of $5.0 million or 7.1% compared to $70.8 million in the prior year period. The increase was primarily due to increases in employee compensation costs.
Hi, guys in costs professional fees and information technology costs in our APC segment and increases in instructional materials costs and employee compensation cost in our HCM segment, partially offset by a decrease in advertising costs and our ATM segment and bad debt expense in our APC segment.
Validated in structural costs and services expenses increased approximately $3.8 million to $31.1 million and as a percentage of revenue decreased to 39.3% compared to 44.2% in the prior period.
The increase in instructional costs and services expenses was primarily due to an increase in employee compensation costs in our APC segment and increases in instructional materials costs and employee compensation costs in our HCM segment.
Selling and promotional expenses increased approximately $2.6 million to $18.5 million and as a percentage of revenue was approximately 23.4% of revenue in both the current and prior year periods.
The increase in selling and promotional expenses was primarily due to increases in advertising costs and employee compensation costs in our APC segment, partially offset by a decrease in advertising costs in our HCM segment.
NPR segment advertising costs increased $2.3 million compared to the prior year period.
General and administrative expenses increased approximately $2.6 million to $22.6 million and as a percentage of revenue decreased to 28.5% from 32.4% in the prior year period. The increase in general and administrative expenses was primarily the result of increases in professional fees and information take.
Analogy costs in our APC segment, partially offset by decreases in employee compensation costs and bad debt expense in our APC segment.
For the three months ended September Thirtyth 2020 bps segment General and administrative expenses include the following on a pre tax basis.
Approximately $1.9 million in professional fees associated with the rest of US an acquisition and $1.5 million of information technology costs related to replacement and upgrades to our information technology systems.
For the three months ended September Thirtyth 2019, This segment general and administrative expenses include $2.8 million in employee compensation cost for post retirement benefits related to the former Hqs presidents retirement.
Consolidated bad debt expense was zero point $9 million or 1.1% of revenue in the third quarter of 2020 compared to $1.0 million for 1.5% of revenue in the prior year period.
In addition, the POS is three three year cohort default rate and other CPI and quality measure improved to 15.2% for the fiscal year 2017, the most recent reporting period.
Depreciation and amortization expenses decreased approximately 26 million to $3.2 million and as a percentage of revenue decreased to $4.1 million of revenue from 5.5% in the prior year period.
Operating income for the third quarter of 2020 increased by $6.2 million to $3.3 million compared to an operating loss of $2.9 million in the prior year period.
Consolidated net income for the quarter was $2.6 million or 18 cents per diluted share compared to a net loss of $1.6 million or 10 cents per diluted share in the prior year period.
Adjusted EBITDA for the three months ended September Thirtyth, 2020, with $10.8 million compared to $7.3 million in the prior period.
For the three and nine months ended September Thirtyth, 2020, and 2019, adjusted EBITDA excludes non cash compensation expense.
From disposal of long lived assets goodwill impairment.
Compensation cost for post retirement post employment benefits related to the former Hps President retirement, and M&A related professional fees around.
A reconciliation of EBITDA and adjusted EBITDA to net income the comparable GAAP financial measure.
Is included in the tables of our earnings release under the caption GAAP net income to adjusted EBITDA.
Total cash and cash equivalents as of September Thirtyth 2020 for approximately $228 million compared to 202.7 million as of December 31, 2019.
Net cash from operations for the nine months ended September Thirtyth, 2020 increased 40.1% to $44.7 million compared to $31.9 million in the prior period.
Capital expenditures were approximately $4.2 million for the nine months ended September Thirtyth 2020 and 2019.
Now back to Andy.
Thank you Rick.
As Rick just noted our third quarter results demonstrate that.
Hi has moved from negative to positive growth with year over year increases in revenue net income and adjusted EBITDA.
Enrollment growth of 18, new Afton Hondros drove an 11% increase in consolidated revenue for the first three quarters of this year.
Adjusted EBITDA increased 5.8% year to date compared to the prior year period, even with the investments we made in technology and marketing.
We believe this is a solid growth foundation that will be magnified by the acquisition of Rasmussen University.
On page eight I'm, so pleased to announce that we entered into a definitive agreement to acquire assets in University, which is transformational for both.
And Rasmussen.
This combination dramatically increases our scale and is expected to nearly double H ers revenue to approximately $600 million in fiscal year 2021 on a pro forma basis.
It is also highly strategic and HPP will become the number one educator any use of.
Pre licensure nursing.
By conferring associates nursing degrees and practical nursing degree, which lead to registered nurses and licensed practical nurses, respectively. After students hit four and past the national licensure examination.
Collectively Rasmussen and Hondros will be a nursing education powerhouse serving over 10000 nursing students.
The transaction creates scale and diversified revenue.
Revenue mix.
That will consist of approximately one third military and veteran.
One third nursing and one third online adult learners.
Furthermore, it provides important scale benefits and help establish 80 YY as a platform for additional transaction that can create meaningful synergy opportunities over time.
We feel very fortunate to have found a partner in Rasmussen, whose mission and culture aligned so well the database.
We both prioritized, providing affordable inclusive and high quality education, and both had strong regulatory track record with.
Which make this an unparalleled combination in our industry.
As we became familiar with Rasmussen University, we discovered that it too is one of the best kept secrets in nursing and higher education.
Despite its quiet persona Rasmussen University is a leader in nursing education, when the strong regulatory track record a wonderful complement to 80 and its growth strategy.
Wraps incentives regionally accredited by the HFC are higher learning Commission just as a t. lasted.
It has a 120 year history and currently serves 18200 learners through 24 campuses across six states and online.
But after that graph doesn't have a full ladder of nursing programs from pre licensure PME program to a post licensure MSN program with the stock Toro program in nursing launching in January 2021.
In addition, Rasmussen had the fifth largest CBD program with over 2000 students.
Rapidly school of nursing was launched in 2004 and has become one of the largest in the us with approximately 8200 nursing students.
Representing approximately 45% of its total enrollment.
Together with the over 2100 nursing students at Hondros. The addition of Rasmussen will make 80 high the number one educator of pre licensure APDN NPM nurses, serving over 10000 students in a high demand market for nursing education.
With the shortage of registered nurses in the United States growth.
Growth in the demand for nursing education is expected to accelerate.
According to the Bureau of Labor Statistics revenue.
Registered nursing is among the top occupation for job growth and.
And there will be approximately 175000 annual job openings for our end each year through 2029 was.
With the shortfall of over 500000 nurses by 2030. According to a study published in the American Journal of medical quality.
We believe that the powerhouse combination of Rasmussen Hondros, we'll be at the forefront of helping our nation solved in nursing shortage by creating new nurses.
Collectively Hondros Rasmussen will become the powerhouse representing approximately $165 million in nursing revenue.
Serving students now through the combined 30 campuses across eight states and online.
This larger nursing education footprint will be in for minimal force operating across markets to address large projected nursing shortages in high demand for education.
Beyond nursing as direct Bureau of Labor statistics projects above average growth in many segments of the healthcare employment market Rasen offers a full complement of degree programs in health Sciences.
In the second largest school contributing almost a quarter of total revenue.
Rasmussen demonstrates the strategic and cultural alignment with.
In AG ROI from generous transfer policies and credit for prior learning through his commitment to further reducing the cost of degree of payment with differentiated tuition pricing that more closely aligns his job market expectation.
And time to degree completion with innovative employers centric CB learning programs.
Additionally, rastus intuition ranks among some of the most affordable in the industry with general education undergraduate programs costing approximately $11000 on average and differentiated healthcare focused programs costing approximately $17000 on average.
Rasmussen has a strong financial profile and has seen impressive gains in recent years.
Largely driven by the growth in the nursing school and a focus on operating efficiency.
Overall enrollment has grown at a 5.5% three year CAGR to over 18000 students.
Revenues have grown at an 8% three year CAGR and adjusted EBITDA has increased to $40 million with margins expanding from 9% in 2017% to 60% in 2020.
Underpinning strong growth story had been a mix shift towards nursing from just 25% of enrolling four years ago to approaching 50% today.
Given the nature of the programs nursing has a higher net revenue per student, which has helped drive total revenue.
Rasmussen strong financial and operating results should further accelerate growth.
Growth story.
Simply put the acquisition of Rasmussen University and represents a significant step in the repositioning.
That began a year ago and has included a return to growth in.
The turnaround at Hondros.
Enhances our brand promise to provide our students with a higher education return on investment or AC ROI.
This combination dramatically increases.
Scale by.
By nearly doubling our revenue to approximately $600 million and approximately $100 million in adjusted EBITDA in fiscal year 2021 on a pro forma basis.
As mentioned post close we expect a revenue.
The revenue mix will consist of a third nursing as during military a third online adult learners three defensible pillars for long term growth and increased profitability for ATM.
As we continue to transform and evolve.
We will continue to focus on our existing businesses, while preparing to close and welcome Rasmussen into the family.
With the acquisition, we expect to unlock new revenue opportunities and cost synergies.
Including $5 million to $10 million in cost synergies anticipated in each of the first three years.
And accelerate shared initiatives that can provide meaningful benefits to students.
While Rasmussen is a large acquisition coming with it is an exceptional management team that will be focused on its continued growth and strength as an institution.
Wrapping his team already has existing plans for geographic and programmatic expansion as well as initiatives to further improve operational efficiency and strengthening its overall value proposition for students.
We will be working closely with that team to implement a shirt implement a shared services model that will help further facilitate delivering a quality education and attractive prices and anticipate that sharing of best practices and cross pollinating academic programs across our subsidiaries.
Overtime will lead to stronger institution and a stronger company.
We currently anticipate the transaction to close by the middle of the third quarter next year.
At this time I would like to turn the call over to Rick to discuss our outlook for the fourth quarter of 2020.
Thanks, Thanks, Sanjay going on to page 15.
Hi, guys outlook for the fourth quarter of 2020 is as follows.
Many of US net course registrations by new students are expected to increase between 11% and 15% year over year and.
In total net course registrations are expected to increase between 6% and 10% year over year.
At Hondros, new and total enrollment increased by 34% year over year compared to the fourth quarter of 2019.
In the fourth quarter of 2020, we expect consolidated revenue to increase between 10% and 14% year over year with year over year increases in both our <unk>.
In Asia and segments.
The company expects diluted earnings per share to be between 41 cents and 46 cents in the fourth quarter of 2020.
This includes the pre tax impact of approximately $1.3 million in M&A related professional fees.
The consolidated outlook for the fourth quarter earnings per share includes items, we generally view as important investments in our future growth such as investments in our technology modernization project and increased marketing to elevate our affordability message.
In closing Apiay continues to report improved financial results, including a 16.6% increase in revenue and a $4.3 million increase in net income for the three months ended September Thirtyth 2020, as well as a 40.1% increase in net cash from operations for the nine months ended September Thirtyth 2002.
Lenny as compared to prior year periods.
Operator, we'd like to now open the line for questions.
Thank you very much.
As a reminder to ask the question you'll need to press star one on your telephone to withdraw your question press the pound or cost to please standby only compiled acuity loss.
Our first question comes from Jeff Silver with BMO capital markets. Your line is open.
Thanks, so much and congratulations on the continued stellar results the company posting over the past few quarters.
In your prepared remarks, you alluded to the political environment and I'm sorry to start with this question, but given everything that's going on I think it's important I think it was the word that the company would be adaptable to propose changes that Danny can.
Can you talk about what changes you might expect and how the company would adapt to those.
Sure I think the one that has been most common.
Commonly discussed is the change in the composition of a 90 10 calculation and as as you know and many of us know.
The military tuition assistance.
Benefit and da benefit really truly is that it's the benefit too.
Our active duty in our veterans for serving our country.
And that is the reason why historically it has not been included in the 90% calculation.
In fact, the CA and BA.
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Benefits would be including in the 90, 10 calculation 18, and Npls, specifically would still be within the confines of the 90 10 ratio.
If there are there are also discussions about.
Moving a 90 10 calculation to 80 515, and we have some.
Some strategies that we are developing in order to be able to make sure that we can successfully passed an 80 515.
Ratio in the event that that that comes to comes to pass.
So I don't know if you can give us any examples, but but at a high level what kind of things can you do to make sure we stay above.
Below 85% of the come down to that level.
Yes.
These are things under development right now the upside down and Thats, where all those details right now.
But I do there are some things related to.
Corporate programs employer reimbursement.
A focus on the.
Kind of the micro segmenting and we.
Redirecting some of our marketing spend to two students who perhaps are not dismissing of using Ta da benefits. Today. So we have a very good handle based on our Mark micro segmentation work that we've accomplished this year about the students.
So that we can see who are not leveraging ta da into certainly we want to redirect our focus is on toward those students. Okay.
Okay. That's really helpful. Let me shift gears over to Hondros again, we get a really phenomenal results the past few quarters.
From a competitive perspective, we're just seeing and hearing lots of school starting to offer nursing I'm. Just wondering what you are seeing the competitive landscape wise and how you can differentiate your offerings via the be the competition. Thanks.
Sure and thanks for asking that question Steve.
Define that.
There is.
A lack of clarity among some not not necessarily you Jeff you know a lot about this but but.
But when we get asked about nursing.
We want to make sure that the understanding that folks have is that for hydro specifically today hundreds offers only pre licensure nursing it often pn and ADN degree.
Pre licensure nursing the educational pro.
Programs that create new nurses and that's really a big part of what we're focused on and a big reason why we are very attracted to rasmussen.
Who also has a deep focus in creating new nurses, certainly baskets and offers the full ladder, but as soon as you do a saying 80 and RPM to BSN or RN to BSN.
The MSN degree than even the doctoral program, we're not creating new nurses at that point, we're educating existing nurses and allowing them to advance in their careers, which is certainly also important but.
But right now what we know is that the market gap the shortage. The 175000 open positions the year to 500000 nurses by 2030 is specifically related to registered nurses and so in our mission to create as many qualified registered nurses ads as we can.
To help try and address that that gap. That's what we think is really distinguishing about.
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About the programs we offer today certainly as you think about.
Competitors, who might be trying to expand into new states.
There are different state regulations, with the nursing margin and other regulatory bodies.
Make it somewhat difficult for new entrants to move swiftly into it.
In two new states it could be up to two years before nurse.
Nursing programs are approved for scale and and certainly we believe that with the foothold that we have in now nine states as as Rasmussen was just approved to open campuses in taxes that we have the opportunity to significantly accelerate the number of new nurses that week, we create.
For the United States.
Alright, thats, great to hear I'll jump back in the queue. Thank you.
Again, if you would like to ask a question press star one on your telephone.
There are no further questions at this.
We have another question from Greg Pendy with Sidoti Your line is open.
Hi, guys. Thanks for taking my question.
Can you just talk and I guess at the core University and I'm sorry.
If you guys touched on this earlier, but can you just.
Now that you are kind of making a big acquisition into nursing can you kind of give a little bit of color on where are you seeing that specific.
Puts and takes in terms of demand as far as.
Your curriculum are there any areas that are outpacing, maybe IP or business Laggan and just kind of.
Go go into a little bit of detail there.
In light of the enrollment numbers.
Sure happy to give you some detail not necessarily at the program level, but definitely some enrollment momentum had a to us.
Today.
Certainly the three.
Freedom Grant, which we discussed earlier on the call is created in moments before Nick.
And returning.
Students at the graduate level for a t., where we are.
We're also seeing significant momentum in the graduate programs for military affiliated students whose must be spouses.
As well as and that's at the at the returning student level as well as new registrations for military affiliated both of the undergrad and graduate level.
In our non military students have expressed significant interest in we have a normal growth at the graduate level in our non military students as well. So we do see people taking advantage of the affordability the programs that we offer in advancing in their careers.
In a very affordable way during during this time of pandemic.
Great that's helpful. Thanks.
Again, if you would like to ask a question press star one on your telephone.
There are no further questions at this time I will turn the call back over to Chris for closing remarks.
Thank you operator that will conclude our call for today. Thank you for listening and for your continued interest in American public education. Good evening.
This concludes today's conference call you may now disconnect.
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