Q2 2021 Zovio Inc Earnings Call
Good afternoon, and welcome to resolve your second quarter 2021 earnings conference call.
This call is being recorded other.
Time, I would like to turn the call over to Vicki <unk> Executive Vice President Chief External Affairs Officer.
Please go ahead.
Thank you and good afternoon.
<unk> second quarter 2021 earnings release was issued earlier today and is posted on the company's website at Www Dot <unk> Dot com joining me on the call today are George parent Steiner interim CEO.
So office of the CEO and Board Chair, Chris Barnes Executive Vice President operations and office of the CEO and Kevin Royal Executive Vice President Chief Financial Officer, We would like to remind you that some other statements. We make today may be considered forward.
C E. Okay.
Including statements regarding University partners, and other programs and services, our ability to grow through acquisition, our ability to successfully integrate and leverage acquired company future revenue growth EBITDA financial and related guidance and.
Forward looking Terry regarding fiscal year 2021 and later these forward looking statements are subject to a number of risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward looking statements. Please.
And Comped that these forward looking statements speak only as of the day of this presentation and we undertake no obligation to update these forward looking statements in light of new information or future events, except to the extent required by applicable securities law.
On the call today we.
We will also discuss certain non-GAAP financial measures.
In our earnings release, you will find additional disclosures regarding these measures, including reconciliations of these measures with U S. GAAP note that these non-GAAP financial measures are intended to supplement GAAP financial.
Actual information and should not be considered as a substitute for our GAAP per sale.
Please refer to our SEC filings, including our annual report on form 10-K for the year ended December 31.2020.
As well as our quarterly report on form 10-Q for the.
The quarter ended June 32021, which we filed with the SEC earlier today for a more detailed description of the risk factors that may affect our results.
You may obtain copies from the SEC or by visiting the Investor Relations section of our website.
At this time.
Time, it is my pleasure to introduce our interim CEO George per diner.
Thank you Vicky and welcome to our second quarter 'twenty to 'twenty 1 earnings call.
Starting with our results for the second quarter 2021, we delivered revenue and other revenue of 69 point.
$2 million and incurred a net loss of $4 million or a loss of 12 cents per diluted share.
Excluding non-GAAP items, our non-GAAP net loss for the second quarter of 2021 was $800000 or a loss of 2 cents per diluted share last quarter.
<unk>, we discussed the enrollment headwinds we faced at <unk> as a result of the new brand as well as the longer term impact of the Covid pandemic similar to many higher education institutions.
According to the persistence and retention report recently issued by the National student Clearinghouse.
Research Center, new enrollment of college students in the United States, particularly the first time students and students under represented in higher education students of color are those from low income backgrounds at older students continue to show overall decline. In addition, the rate of college student persistence decline.
2 percentage points in 2020, the largest 1 year drops since 2009, when the clearinghouse began reporting this measure.
While Covid has had an impact on enrollments nationwide. This new more virtual world has also presented opportunities for higher education to re imagine itself.
The house now more than ever providing students an online platform for learning that is not only robust, but engaging will prove critical.
College and universities are looking for a partner like Silvio has demonstrated a track record of supporting the student lifecycle and delivering favorable student outcomes.
I believe <unk> is well positioned to bring technology and innovative services to institutions to help learners succeed.
<unk> long term strategy is centered on bringing education opportunities to learners, where they are to do this we will deliver education services that meet the diverse.
<unk> to the universities employers and learners. In addition, we are enhancing our programs and services and we are expanding our skills to employment offerings to empower learners to better connect with in demand jobs.
As we noted we took actions to further strengthen <unk> operationally as well.
Knees that are positioning the company for long term growth. These actions were centered on realigning our operations, including breaking down internal silos and increasing collaboration across the team as well as broad based cost reductions.
Took additional actions in the second quarter, which Kevin will discuss shortly that will bring our total.
Well as <unk> savings to $40 million in calendar 2021, we are excited for what the future holds for Silvio and our ability to play an important role in enabling learners to advance their educational goals.
Let me provide a brief update on the progress we have made in our search for <unk> next Chief Executive Officer.
<unk>.
As mentioned on our last call. We have formed a search committee, which has made good progress identifying the right blend of vision and talent to lead Silvio as an education technology services company.
We have been impressed by the quality and caliber of individuals who have expressed interest in joining us.
He worked to set the company on a growth trajectory to deliver shareholder value for many years to come.
The work is not yet complete we have confidence that our process will result in identifying the right leader for <unk> future.
With that let me turn the call over to Chris to run through the highlights for.
For the quarter.
Thank you George.
We continue to advance our Silvio growth segment, while at the same time, enhancing our robust and flexible offering for the University partners and the University partners segment.
These efforts are creating value and we believe they position us well.
As we've enhanced performance over the long term.
With a differentiated and flexible value proposition that spans the student lifecycle. We are meeting the growing needs of our current and future partners both at the undergraduate and graduate level.
Especially in engaging working adults and historically under represented.
Students.
Our growth segment, which includes our subsidiaries full stack into the me <unk>.
Has continued to perform well in the second quarter of 2021, Zilvia growth delivered revenues of $6.9 million growing 39, 3% for the quarter year over.
A year.
These services that full stack in tutor provide enhanced <unk> ecosystem to support learners education and career aspirations.
By building on our existing capabilities to meaningfully serve higher education institutions bridge, the education to employment GAAP help enterprises.
Mrs Upskill and educate their employees.
We have the opportunity to be a premier player in a large and evolving and growing industry and.
And Sylvia growth is a critical piece of that strategy.
Our track record of innovation will allow us to offer services to our University partners that spanned the student journey.
And support the best possible outcomes.
Further demonstrating the strength of our growth segment tutor me was honored in early June as a double gold Stevie Award winner in the 2021 American business Awards.
In addition, during the second quarter of 2021.
<unk> continued to execute new partnership agreements from universities corporations, 2 school districts, bringing their total partnership count to over 250, an increase of 230% year over year.
In the second quarter total customer and partner hours usage increase.
Just over 120% year over year, maintaining the strong momentum we have seen in recent quarters.
Full stack also added new partners during the quarter and leveraged new partnerships that came online in the second quarter full stack added Cleveland State University to its roster.
Free accelerated tech skills training to Ohio.
As well as the University of Texas, Dallas, and the University of New Mexico. We are excited about the opportunities. These universities have to offer.
As the end of the second quarter. This brings full stack to 16, new partnerships since the.
<unk> in April of 2019.
In addition, we launched a data analytics boot camp, which has been well received.
Our outlook for Sylvia growth remains strong for the remainder of 2021, we anticipate full stack, adding between 3 and 6 new University partners.
And tutor me, adding between 30% and 40 new partners.
We will continue to invest for growth in this segment.
<unk> strategic sales and marketing initiatives to bring new partners online.
While at the same time, maintaining our momentum with new partner acquisitions.
Turning to our University partner segment UA Juicy enrollment in the second quarter was in line with what we anticipated. Additionally in mid May you AGC announced a new partnership agreement with a large corporate partner Walgreens that will include certain scholarships and reduced tuition for bachelors and masters.
Grams per qualifying employees.
Our relationship with <unk> continues to mature in this vein in mid July we brought the leaders of Silvio and new AGC together per a 2 day in person summit to outline the initiatives that will drive enrollment advanced programs and support strong.
Long student outcomes, while it's too early to talk specifics. We believe we have a strong action plan and common goals to advance the relationship Zalviso remains well positioned as we bring a clearly differentiated offering to our clients.
We have a robust platform of technology and services that institution.
Institutions corporations, and learners clearly value and will set the stage for diversified growth.
As I mentioned last quarter, we signed a new partnership with the mid sized University. While this is a more narrow engagement. This partner understands the value that <unk> is able to bring as it strives to achieve.
<unk> its objectives and we're looking forward to building long lasting relationships.
In addition to our recently signed partners, we continue to build an attractive pipeline of opportunities with institutions. As many are seeing the value to enhance student engagement and improve the likelihood of students success through.
Through our services, we remain confident in our ability to add partners and UTD. During 2021, now I will turn the call over to Kevin Royal to review, our financial and operating results.
Thank you Chris.
Sure I begin.
Minder, our business model period over period.
It shifted significantly as a result of our transition to an education technology services company in December 2020.
As such for comparability purposes. In addition to providing the GAAP results for the second quarter of the prior year I will be highlighting certain related.
<unk> pro forma amounts for that period.
Revenue and other revenue for the second quarter of 2021 was $69.2 million compared to $103.9 million from the same period in the prior year on.
On a pro forma basis revenues for the second quarter of 2020 for Est.
To be $76.2 million.
The decrease on a GAAP basis is primarily related to the divestiture of Ashford University and the shift to the Ed Tech business model, partially offset by an increase in the <unk> growth segment revenues.
For.
The second quarter of 2021 technology and academic services were $18.1 million or 26, 1% of revenue compared to $17.2 million or 16, 6% revenue for the second quarter of the prior year.
On a pro forma basis these expenses.
<unk> for the second quarter of 2020 were estimated to be $17.6 million or 23, 1% net revenue on a GAAP basis as a percentage of revenue. These costs increased year over year and were primarily driven by increased labor costs and license fees.
Partially offset.
By decreases in consulting and outside services.
Counseling services and support for the second quarter of 2021 were $23.2 million or 33, 5% per revenue compared to $23.5 million or 22.6 percentage of revenue.
<unk> offset for the comparable prior period.
On a pro forma basis. These expenses for the second quarter of 2020 are estimated to be $22.6 million or 29, 7% of revenue.
On a GAAP basis as a percentage of revenue these costs increase.
Primarily due to employee costs and facilities costs.
Marketing and communication expenses for the second quarter of 2021 were $21.7 million or 31, 4% net revenue compared to $21.7 million or 29% of revenue.
Kris to prior year.
On a pro forma basis. These expenses for the second quarter of 2020 are estimated to be 21, 5 million or 28, 2% from revenue.
On a GAAP basis as a percentage of revenue these costs increased due to advertising and employee costs.
General and administrative expenses for the second quarter of 2021 were $8.4 million or 12, 2% net revenue compared to $11.6 million or 11, 1 percentage of revenue for the comparable prior period.
On a pro forma basis. These expenses for the second quarter of 2000.
'twenty were estimated to be $10.2 million or 13, 3% per revenue.
On a GAAP basis as a percentage of revenue these costs increased due to employee cost insurance and other administrative costs.
We did not have any university related expenses.
For the second quarter of 2021, as compared to $24.2 million or 23, 2% net revenue for the prior year period.
On a pro forma basis. These costs would not have existed in the prior year. These.
These expenses represent cost related to the university prior to the sales.
Vincent in December 2020.
Restructuring and impairment charges for the second quarter of 2021 for $2.3 million or 3.4% per revenue as compared to <unk> 5 million or 5% of revenue for the prior year period.
During the second quarter.
In 2021, we recorded an income tax benefit of $1.2 million.
Our effective tax rate before discrete items for the second quarter of 2021 with low single digits and we anticipate this trend to continue for the remainder of the year.
As a result.
Our net loss for the second quarter of 2021 was $4 million or a net loss of <unk> 12 per diluted share.
This is compared to net income of $5.1 million or net income of <unk> 16 per diluted share for the second quarter of the prior year.
Our non-GAAP net loss for the second quarter of 2021 was <unk> 8 million or a loss of <unk> <unk> per.
Per diluted share compared to the non-GAAP net income of $8 million or income of 24 cents per diluted share for the second quarter of the prior year.
The non-GAAP net loss for the second quarter of 2021 excludes restructuring and impairment of $2.3 million.
Separation and conversion cost of $3 million acquisition cost of $1.5 million and other non-GAAP cost of <unk> 4 million and an.
Income tax benefit of <unk> 3 million.
As of June 32021, we had unrestricted cash and cash equivalents from 24 million as compared to $35.5 million as of December 31, 2020. In addition, we had restricted cash of $13.3.
3 million at June 32021, as compared to $20 million at December 31, 2020.
Requirements that have previously restricted certain of these funds will no longer be relevant and we expect an additional $2 million of the restricted cash amount will become unrestricted.
During 2021, moving to unrestricted cash and cash equivalents.
There were $16.3 million of cash used in operating activities. During the year to date period ended June 32021 by.
By comparison, we had $6.7 million of cash provided by operating activities.
During the same period in the prior year.
The year over year change in cash provided by operating activities was primarily driven by the decrease in earnings partially offset by changes in the working capital accounts.
The net accounts receivable.
These $2.9 million as of June 32021, compared to $7.2 million as of December 31, 2020.
Capital expenditures for the year to day period ended June 32021 from <unk>.
7 million as compared to $1.6 billion for the same period last year.
So turning to our outlook for 2021, preserving <unk> growth from a revenue perspective, we still anticipate the segment's revenue to grow approximately 30% year over year and anticipate generating an EBITDA loss of between $6 million to $8 million in 2021.
This plan invest.
Net will decrease consolidated EBITDA margins in the near term.
Longer term, we expect this segment to grow at least 30%.
Annually through 2025.
And be profitable beginning in 2023.
We recently took actions to reduce our cost structure to more appropriately align.
Line it with both our revenue expectations and the nature of our new post Ashford business.
As we move through the second quarter.
Enrollment began to stabilize at levels slightly lower than anticipated, causing us to further reduce our planned spending.
Our.
Total year to date cost reduction efforts will yield approximately $40 million of savings in calendar 2021, and approximately 60 million in annualized savings going forward compared to planned spending levels.
For 2021, we continue to expect total consolidated <unk>.
Other revenues to be in the range of 265 to 275 million and non-GAAP EBITDA to be breakeven to a slight loss.
At this time.
Ask our operator to open the phone lines for your questions.
At this time I would like to remind everyone in order to ask a question. Brent Star then the number 1 on your telephone keypad, so far for growth at the moment for compile the Q&A roster.
Your first question comes from the line of Alex Paris with Barrington Research your.
Your line is open.
Okay.
Hi, guys. Thanks for taking my questions.
I think I'll start first with the University partners segment in UA Juicy, specifically, we talked a lot about it.
In Q1 call and since.
And.
We since you've talked about.
A shift in prospective students coming from the West, Arizona, California, Texas and away from the South which was Ashford university's.
A source of significant enrollment.
You said that the students are taking longer.
To make a decision but conversion rates are higher there were more inquiries at the graduate level as opposed to undergraduate there were positive early signs and then specifically in military youre starting to see some improvement there as well. This is all set on the last call in and in a conference appearance. Since I was wondering if you can update.
The current state.
State of the AGC efforts.
Thanks for the question, Alex we're still seeing.
That shift.
In geography in terms of the inquiries that are that are coming through.
The.
The conversion continues to hold strong.
That's good.
Something that I feel good about from.
From an operational cadence.
With respect to the military.
<unk>.
I think have done some good things to continue to message to the military with the new brand and I think thats.
Having having.
Well.
Operationally so other things that we provided in the last quarter.
Focusing.
Seeing those trends.
Having.
As the market shifts a little bit our ability then to sort of calibrate from a training standpoint allows us to better service does demographic.
Graphics, and we're starting to see that.
Great and then again on the last call I think you said that April new enrollments were down 25% year over year at <unk>, but you were seeing some signs of stabilization in your prepared comments, you said that that stay below <unk> seen a stabilization, but it's been a little bit lower level than <unk> had.
Expected or hoped could you give us a little bit more color there maybe in May and June yes, we would.
<unk> continued to see stabilization more than we've seen.
Earnings call that we had and so that's that's good and I think thats part of our.
The ability to.
To speak to the new brand and to build that relationship with.
Our partner and University of Arizona Global campus all of those things are very positive in fact, we had.
In July as I referenced we had an in person summit drilling too.
Map out.
The upper.
Very strong new enrollment.
And growth initiatives, while it's too early to give you specifics on that we can out of that meeting both of us feeling very good about the work that we've done and we've got some short term initiatives that will begin to add.
Play in the market here.
A number of you soon and we've got some longer term initiatives, but it was a very productive meetings and I think that was your.
Strong sentiments from both sides.
So when you say stabilization, you're just saying, it's not as bad as negative 25%.
Right.
Getting closer to 2 zero, but certainly not.
Growing yet at this point.
Yes, that's correct.
Probably closer to 20% decline versus the 25.
And recently, we are seeing stabilization in our total enrollment.
Yeah.
And that's a function.
I love the improved continuation of students and fewer graduations.
It's a function of obviously, adding new enrollments to the mix, it's a function of.
Increased persistence and working with.
Students that EBIT drops getting them back to.
We are free so there's a number of moving parts there that drive our total enrollment. It goes all are either stabilized or in some areas. Some shows from site.
Improvement.
Okay got it sounds like Theres, a lot you can't talk about yet at this stage.
<unk>.
You say your EBITDA.
How would you qualitatively.
Put it you are more encouraged than you were 3 months ago about the prospects for <unk>.
I think that would be a good.
Way to frame the relationship I think we're we haven't been as bad place I think we're in a.
Better.
But today and I think that summit meeting I think that bodes well.
Sites.
Great deal of.
Service to help grow the business both on the new enrollment and total enrollment site.
Okay. Good and then while it's still on University partnerships.
Playing the smaller deal the mid size School you can't you have the name yet I think it was your hope at the outset of the year that you'd have 1% to 3 such additional contracts this year.
Do you still is that still the target.
Yes, I think we're feeling optimistic.
But again some of these things.
Take a little longer so.
And I think we've got I think an attractive pipeline that looks.
It looks good.
Okay. Thank you and then.
So I have the updated guidance.
The.
Yeah.
Yeah.
When do you think you'd be in a position to give 'twenty 2 guidance.
2022 guidance.
So I think given that the.
Budget cycles that were on that.
<unk>.
More likely than not Alex will not provide that guidance.
Our third quarter call in late October early November at the earliest.
Depending on our visibility that could push.
Out until our fourth quarter call in February timeframe.
Alright.
I would encourage you to getting some sort of targets goals don't call it guidance, but give us some sort of idea on that.
If we're going to.
We're in the valley here and we're looking to the other side.
To whatever extent you can help us theyre looking to the other side.
We would appreciate it.
And then I guess the last quick question is.
Cash you discuss cash.
$8 million came out of restricted cash in the second quarter. Another couple of million to go between now and your what do you expect cash to be at year end.
I think.
The latest forecast that we're looking at is roughly 40 million as of the end of the calendar year.
Okay. So thats kind of unchanged from the last quarter, which is good.
That's correct.
Okay, great. Thank you that answers my questions for now I will get back in the queue.
Great.
Your next question.
Comes from the line of Tony <unk> with water power Research. Your line is open.
Yes, good afternoon.
And Kevin.
You've covered quite a bit.
On the call and.
<unk>, but I think you mentioned.
In terms.
Cost savings Youre going from 40 million annualized to $60 million annualized is that is that correct.
That is correct.
Okay.
And then.
You mentioned, leaving with a UA G C are there any.
Any cash.
To the backend of Q.
Share with us.
Yes.
Some from some quantitative us administration that kind of thing that you think you can do.
Just high level, Terry I think I.
I think we focused on 2 areas 1 what can we do to continue from an initiative standpoint continue.
<unk>.
Sort of drive in a good way new enrollment and so there was a lot of good conversation.
Around that area. The second area was around persistence of our existing students what things can we can get you to give students and support them where they're at in their student journey lifecycle.
And we've got a number of things mapped out I think.
Here soon would be helpful to provide a little more insight into what those are again as I said some of these will take place.
Pretty quickly and then some of these take a little longer time, but I think this message.
Cycle to give you a little more insight as to the specifics of what those are and how impactful that will be.
Okay.
In terms of the haps Youre getting from University of Arizona.
Helping you ADC any color you can give at this point tool.
No not at this point here I think we work.
Building that relationship with <unk>, and obviously you AGC has that relationship with the University of Arizona. So it's in that vein that we're continuing to open up a dialogue where there's opportunities for.
That or improvement in various areas and we will continue to work on that spirit.
I think there is I think the point I would make that there is an open dialogue between.
University of Arizona Global campus, obviously, Silvio and University of Arizona, So thats, a healthy and Thats, a good thing from which to build on.
Okay and then.
On the fourth pack you mentioned is that a new program. So we have talked about cyber security.
And data analytics.
The third program too right.
We have the 1 I think it was the.
The boot camp the data analytics. Yeah. These are newer newer programs that we're putting out into the market that are.
Yes.
Resonating with.
Certain audiences. So thats 1 adjusted light that is really.
Has done quite well.
Okay.
So when you have a new partner do you usually start with the full menu will you start with cyber security and then you add on.
It's a great question. It really just depends on the University partner in terms of what.
They want a.
Our partner.
Perhaps LSU is.
Sure.
Looking at our full suite of offerings, where other schools are looking at more of a.
Ltd.
Programmatic.
List. So it just really depends on where they're at in that space and some maybe start a little other smaller scale. Some are a little more robust and.
Just there is there is.
I wouldn't say there is no rhyme or reason, but it just varies by by University partner in terms of what Theyre looking for but I think that initial part of whatever program programs or programs we launch.
Getting getting them up and running and successful.
More as to I think build on that.
Okay, and then maybe.
<unk> has a question.
Question for Kevin.
So we're going to be cash.
We're going to generate cash in the second half of the year.
I think I understood that correctly right.
That is correct.
Okay. So we go from 2.
<unk> $37 million to $40 million or so in.
Total cash flow.
Is the 40 million cash in cash and restricted our.
Unrestricted cash.
Constricted cash Terry.
Okay.
Okay great.
Thank you very much.
Your next question comes from the line of Greg <unk> with Northland Securities. Your line is open.
Hey, guys. Thanks for taking the questions.
Follow up on the military side.
When we think about your effort to.
<unk>.
Or I guess that you are taking to remediate some of the branding related issues that you've had with them following the brand change.
How close I guess would you say, we are rebuilding that brand image and expect to see any long term impacts there.
Would you be saying, we're kind of halfway to recovering military interest just trying to gauge.
Age, where we stand today.
I think.
It's hard to say, whether we're halfway there fully there or a quarter of the way there I think what's good is the fact that the steps that we've taken to.
We solidified.
Working with the military as has started I think our ability to.
Message our brand our new brand to the military.
Has started.
And I think we're starting to see some of those dividends.
Still have some headwinds if you will but the fact that I think we are in.
Slightly better place with the military and we have something to build on I think it gives us.
Some optimism in the future.
Okay got it and if.
If I could touch on the Walgreens partnership to.
It seems like you.
<unk> scholarship partnership with there is a pretty nice way to accelerate.
Interest with a new group of these nationwide employees.
I was just wondering.
If you could talk a little bit more about your thoughts there and if youre seeing additional opportunities with other corporate partnerships.
If so when some of those might materialize.
Yes.
Got it.
A very I think healthy pipeline and to work with our corporate team we can continue.
That that area.
Of our business continues to do very well.
We've got.
I cant referenced them now, but we've got some other very much.
Marty if you will our corporations that we're currently in dialogue with them.
And I think those are going to come to fruition here fairly soon but I think.
The Walgreens was was a good step I think we've done a good job with them and I think we can leverage that experience that we've had to be able to take take that message onto both other larger medium size.
Corporation so.
I think it's a good step in the right in the right direction.
Okay great.
We've already had $40 million in cash savings. This year 2021, and then that turning into kind of <unk>.
Equating to $60 million.
On an annual basis could you just walk us through a little bit more specifically, where those savings are coming.
Sure a lot of the savings share take.
Taking a look at the company and really eliminating.
Administrative functions that are not needed.
As we've transitioned to an educational technology company. So we had some leftover functions.
From being a for profit education company, we certainly dealt with that we dealt with a lot of duplication as it related to some of our student facing functions. So we were able to reduce cost in our operation area, which is clearly our largest area of spending without having.
Having an impact that we provide and impact on the services that we provide to the University of Arizona Global campus and then we just we really build in and we really trimmed that cost some things that we may have relied on others.
Outsource.
In the past.
We brought in house and.
We're handling ourselves.
Great, Yes, that's helpful. Kevin.
I guess last 1 from me it seems like full stack include many partnerships.
In terms of the additions are tracking really well relative to your full year.
Expectations.
I appreciate the update to on kind of your longer term look on <unk> growth as a whole.
For the foreseeable future that is and I guess I just wanted to ask if there is maybe any trends or changes to customer demand for those 2 offerings, whether it's positive or negative.
Outsourcing also I guess regarding full stack launching the data analytics like you talked about recently.
I understand if you want to be specific but you expect to launch maybe new programs that might garner additional interest in the foreseeable future.
I think being in tune with what the what the market needs are is important.
And.
So I think we've got a good a good sense working with our.
University partners in terms of what.
Programs. They are looking to build and I think an important part of our growth strategy will continue to provide.
Programs and products that resonate with.
<unk> and the <unk>.
<unk> right in terms of how the market's growing and shifting and we've got to be aligned with that and in some ways beyond the front edge day, you'll get it make sure that we're providing things at a time that's needed to be able to support them and make sure that we're constantly updating the curriculum. So it's relevant to the workplace.
Great. Thanks, guys appreciate it.
There are no further questions at this time I would like to turn the call back over to Kris PON Farr.
<unk> for any closing remarks.
Again, we'd like to thank all of todays callers for their interest.
And we thank you for your participation on the call today. Thank you.
Okay.
This concludes today's conference call. Thank you all for participating you may now disconnect.
Yes.
And Joe.
[music] zone.
Thanks.
It is.
Okay.
Okay.
Good day.
Yes.