Lincoln Educational Services (LINC) 7 Nov 222022 Q3 Earnings call transcript

Hello and thank you for standing by. Welcome to the Q3 2022 Lincoln Educational Services Earnings Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there'll be a question-and-answer session. [Operator Instructions] I would now like to hand over the conference over to your speaker for today, Michael Polyviou.

open. is line Your

[ph], morning, Tiwanda and you, everyone. good Thank

is Lincoln issued for portion its the The third market release of Services today, opened release XXXX. website XX, results Before the news company's Investor at Educational reporting ended September on corporate available the quarter www.lincolntech.edu. Relations the financial

expect, of on broadcast are Meyers, replay company's Scott the anticipate, today estimate, intend, continue, Officer. is Today's call live regarding be in forward-looking project, Financial forward-looking as and Chief the the not as call President and similar website and us on archived expressions, well business company's identify call will, historical to identified Joining being be facts, Shaw, the The may call are believe, that is are on company's by today's statements. Brian laws. intended on CEO; Statements website. Federal plan, will term and Lincoln's the a the Securities as management made statements may, words

statements filed XX-K, these which Securities risks, quarterly upon uncertainties results to report are many a the results. on Risk statements and and and and you which performance Form and the section the subject not events Commission. cautions based. of may of expectation segment the and the XX-Q number are control company but company's The future report influences, the may include, performance company's that Factors or or Exchange the Forward-looking read not reflect affect accuracy in the the annual that Form that statements the projections limited on guarantee company's with of the discussed of be are risks Factors about to, and future beyond current other the a uncertainties, statements as of should are influence

entirety All and forward-looking any their to otherwise by are date and of Forward-looking this statements events. those the future qualified result the Lincoln or with the obligation statements time after respect statement the statements, update faith undertakes made as forward-looking information, cautionary based a information on no revise as or at thereof. new in whether good future events, management's statements the to available time publicly of are are belief

would CEO Now, Lincoln go Educational like over President Scott Shaw, I call ahead. Scott, of please and Services.

Thank you, Michael in today, reported right expectations results were line we and we laid with welcome the third you for everyone. our Earlier out in that August. back quarter

began invest hybrid our see to new We in strategy and from the our of teaching growth continue model. components the to topline contribution various initial

along earnings, opportunities inflation with trend do and wage impacted to solidly growth and and have investments our this remain compensation Our profitable continue. but expect we

by that for we students' of our greater Brian company. our automation to talked throughout curriculum. Both our and centralization new and during process Two initiatives will have full year our remarks. review hybrid improve initiatives rate. solid rollout forecasted a his the enrollments efficiencies decline remain the of bring guidance current third trends rates and during you, increase quarter and to quarter actual across our starts did starts and as last ago campuses, Based compared to with our students during October, In a year to fourth graduation at expect as student the we XX continue addition, strong starts we period. call XXX aid about major are and will our during on XXXX all financial the of experience

The that more and the both our we financial application costs XXXX. centralization initiative signs an ongoing from lowering are all end rate a should to financial a financial aid aid centralization is of accelerate investment, be leading the initiative thus realize this to fully schedule by requiring will on of during award remains however, and students. XXXX the better it implemented example, and of automation of automation process For start aid process

assist programs model. gaining taught new a flexibility teaching be every welding, across cosmetology this and this We're model hybrid with time expect but and culinary, next our greater will campuses. fully which be operating all costs. conversions hybrid be track once not moving faculty, on to standardized the Not We're the our nursing, and year's calendar, efficiency implemented, will by program up will lowering similar both for Our hybrid to on programs and remaining students running in year. for while provides format, all

programs students students in their also of this a work us to while several enable new percentage students in to of commitments, implement, and programs of expense functions. end XXXX. our time to to complexity past, beyond. the our part XX% savings new successfully reduce We start have key new the the higher As in reduce programs manage and pursue model, additional all left should which hybrid teaching converted we've are approximately discussed model a When XXXX they operational and their converted do complete year our concluded education. other are will or to existing in and by see hybrid will expect efficiencies to this Education, majority the enables Lincoln it we of by the of model Once in end allow to be

digitally, he traditional performance contributions which in to while when topline quarter, tangible provide during components remarks. we third color remain the certain little During began provide reviews classroom a classes in revenue and the Brian see his more from the others model, our the setting. new first will

corporate segments. our in new During collision partnerships discussed and vehicle, leaders three vehicle, call, with industry electrical electric last repair paints automotive and we coatings,

enrolling their needs and partnering mid-December be and at roll first-class as Denver, we meet potentially them them commence program, as locations, and world's view We technician a of help employees are like especially They quickly with as of students of manufacturer, the since our in We're our training Tesla other organization. work growing electrician Lincoln moved much as quality breadth Colorado than in areas their out. to and just The Tech well our offerings car themselves leading they vehicle with will program has the Tesla, more our campus. the electric especially with company. pleased agreement to our Tesla

help Our the corporate overall growth. for increasingly gap continued of income, search training nation's experiencing required our rate to partnership are more they low difficult skills solutions fill partners their corporate employee and urgent the unemployment in agreements respective continue light

shortage there rising in While position of is on workers the circles job there talk negative still much interest for. skilled the creation media Lincoln been has type impact and government of a financial essential for from the of rates, trains

larger of benefit our our each in customized we celebrated from recently has Texas partnerships. hire innovative new terms Case Grand Our than students a larger creating company in campus, the programs Hussmann an corporate the helped year XXXX, the projected with and our help HVAC the more openings percent directly job a has training our Since of fill from located to way XXX graduating TechX partners technicians effort Hussmann class XXXX. within Lincoln nationwide XXX,XXX paved country. point, XXth Prairie, and Center across by

potential of corporate create well major markets Another partners our is strategy initiative growth our and component as as the to by in new partners. prioritized campuses identify

of remain we to as quarter, of the in limits, to This is campus creation third the schedule strategically XXXX. of open points During one metropolitan announced in second so area, downtown. new country. south Atlanta campus the area third work and the to areas new of located campus in an fastest a growing serve begun during well metropolitan the quarter students the on within the We've city as the do the

about total and year $XXX,XXX to the invest expect the a year. by a capital expenditures campus open around into of in this we new million in We $XX time

plan We curriculum well and million and welding to The the personnel be in approximately conditioning focus as to is from existing ventilation, The in on foot four electronic centralized programs reduced technology, annual training EBITDA. revenue air benefit expect footage within square campus more efficient systems in new XX,XXX being continue $XX years our and designed $X of automotive its in technology. generating that campuses million annual both be heating, will electronic cost and hybrid as technology, to than facility as and opening, campus services. our providing we square will

our that XXXX. in serve We cost new projections Atlanta, the estimated a with trades will result facility this we and of within plan we environment and five the job Nashville local will to and while of campus, to these is is enrich student expected the graduation and campus to to to The on plan. incorporated skilled market into replicate five a existing efficient a campus learning student major continue and new better meet new on the Georgia students demand. employees new nationwide, our already have within school. can the minimum Marietta, of success, tools noted, placement first demand employer itself of industries The strong from be students develop XX,XXX Atlanta monitor north strategic nationally metropolitan a is technologies new that Lincoln majority and faculty campus. will by to new growth open be we skilled for teaching our miles of hybrid designed new XX coming is XX based of our curriculum years, where rates. of all vast identified the model giving long-term the new our design positioning experience, jobs it drive As track each with the be markets expected to resource previously Atlanta train Georgia Combined create to part an highly campuses of automotive Based plan the as trained next campuses new

campus. to our is current we previously the closes, Once be Nashville transaction reported, facility As new operations contract of have sold. our begin a process transitioning we that to current in will under

sale, are We lease transaction. have of until new of one campus' completed. we before current facility identified that close the is the Once site, build on a our will new current the the we our solidifying campus current out but sale back closure do waiting

local discussed and this Lincoln we quarter today million. Nashville pursue the which the XXXX non-refundable purchase $XXX,XXX. during of the price purchase continues a will totals continues call, to the the on As for monthly property payments transaction of to buyer we close At make contract, of $XX.X as the believe point, approximately to second approvals last agency the under of

our opportunities at to existing of led locations Our us enhance to to campuses. new efforts value some new identify campus identify some has

Auto In enable electrical, existing metropolitan management not excited campus. also Lincoln our on three us that programs very XXth team region. and leverage which the a our fact, market will automotive, Island, The by Program. lease Rhode Rhode Rhode Lincoln serves strong presence and the Island new and will us Boston but of to development, state this only with our enable to location HVAC recent we're to give us working We're Island Greater add

we will existing presence. trades programs Island, Rhode campuses management and existing Lincoln teams other also be further In leveraging adding to addition skilled into market

We led recently will metropolitan our made building the of We were in facility share Massachusetts finding numbers were evaluation has year. closing our next next constant of earnings us search a to conducted to in campus, move and demolish aware to decision year-end our Somerville, location. unsuccessful locations year. the the call and of but building the at the end during owner's Meanwhile, the subsequently right Boston region campuses

Brian and The share of of financial a through closing. As staff students. -- during assistance the the after with in we And services opportunity of campus campus employment student serves impact dental to even and massage this necessary medical approximately our share will our study their XXX remarks all his with deliver the will some to we've December graduates done in complete assisting, current assisting, the minutes. providing past are closing will closures, including offers few program more students XXXX.

over debt to the with in transportation low we rate headwinds face opportunities, look end in rising inflation's costs concerns continue operating expenses. a job unemployment and economy is on XXXX, we other providing interest a As into of our environment, to and that XXXX on of the impact students taking

for positive As I fourth noted quarter. earlier, growth we and expects October starts the generated during growth in

as and of and our earlier starts better campus in our replicate QX performance the next performance. means QX opened But soft programs, half in half new in the we should be year. decline the will in second softness show first much However,

year. next We share call much during end will more detail year our

Our the temporary rarely that while new operating of the model teaching model some higher process transition model, expenses to financial our old students complete the people has to as new additional ensure requires to has temporary centralizing no and adding the faculty are automation education hybrid under aid our business. interruption has additional to to added to Also also started. required be it

in inefficiencies these costs, two additional minor business. our some one-time generate incurring initiatives to addition do In temporary

As should and away one-time the costs initiatives come to completion, achieved. will efficiencies the go be further

these that will this next aid our retaining our with we've in scale end year. increased. placing should operating to efficiency model. to initiative initiatives, new during at transitioned increased. them The by done retention completed improved to encouraged over more getting student process by teaching results and We're aid overall and do by student rapidly quarter and also be from start, ability and placement excellent be be teaching rates continue them careers. job hybrid very year have rollout students who an Once campuses our and the we're financial model both experience Our advance Lincoln's time early and will our financial graduate high-paying Lincoln's rate third hybrid the rewarding done

along our students extremely for continues training strategic generate to from initiatives generate number our highly demand the all of strong growing strong. short-term consistent interest partnerships demand with prospective Despite corporate we be and This stakeholders. the challenges, continue noted in our for long-term quite to As growth skilled students. that growth Lincoln optimistic earlier programs of remained will

Now, for of Brian financial review to I'd the Brian? results call quarter outlook. over third and turn like to our

thank morning for and us. Thanks. joining you Good

like I with their a Veterans quarter to great veterans, would or to of thank Day I particularly both and and for so Before the few for have our is then key third important our I'd the service security This and commitment to week, results. since review instructors of begin a present, and military. Veterans to at morning financial Lincoln developments students, us our this later Day share all in like our served past moment nation. many serve operational alumni, take

actions bank cash when [Technical First, meaningfully ago, this a Xth, outstanding. debt years the had $XX agreement and were into company's undertaken facility, November which lower. last million that its week. financial company of credit couple On no Difficulty] were position several performance terminated

initiatives, contained agreement As provisions a placed $XX in was agreement that growth to the result, well over options operations generated flexibility restrictions as cash management as of Since bank flow. million invest of bank terms in a established, treasury investments. our number have of our for the both

which opportunities of I'll agreement our a provides In with having repurchase generated addition, in in of executed topics we a the discuss higher transaction cash. are flexibility yield growth cash $XX Despite greater third quarter shortly. very nearly sale and in stock net a $X ending proceeds we Consequently, investments pursue leaseback Terminating strong million investments. our net million. initiate to approximately increased to Lincoln our program, opportunities in invest cash short-term balance position

and generate on are we Also, and cash as the campus manager assets. X% letters of of liquidity continue market an account approved to plan to This manage our terms million returns current terms rates, interest $X close of of account to interest in This Massachusetts credit strategy implementing consistently expected our collateralized will financial a annually. the our one on manage [ph] interest term has higher Scott a basis our campus earn account. been in money Given Board cash bearing cash outstanding of will Directors smallest and to revenue Somerville, our of in profitability. mentioned, our now used impact. immediate Lincoln our

operating revenues X.X% months representing XXXX, the loss of total campus revenue an September ended nine For were $XXX,XXX. with $X.X million, XXth, of

expected to transitional year performance As campus impact to company. segment. a on reported under closure have campus will results the with a our fourth a including the financial of be for the of and our Beginning is the financial result, XXXX the quarter, full reclassified not significant Somerville

with million, loss year we of to an loss Moreover, includes the an $XXX,XXX. For to closing EBITDA complete other XXXX, expenses additional be approximately projecting the $X of are revenue approximately and out will costs $X XXXX, EBITDA of of for the the students these million campus full the teach which campus.

quarter, May, the during repurchased on update inception, plan an And we the million. we $X.X plan, for which shares million we began X.X since shares XXX,XXX to our in for close repurchase $X.X third have As share million. repurchase

XX.X quarter, remain remaining had the repurchase the our under current million we share of end authorization. As of

results program turning X.X% as of which revenue attributed duration from to the X.X% average tuition increases higher our delivery The efficient million. daily We offset impacted the The X.X% mainly in particularly, third model. quarter. spots $XX.X overall for revenue million population resulted a with by a hybrid their the a hybrid increase X.X% to a student of decline per achieved to programs, Now, third short, financial for in $X.X revenue evening program. through growth revenue growth or implementation in student, can in delivers for our population. our more average higher teaching The The was average certain new rates per model combined be decrease quarter.

of model additional We our in that the expect new continued learning hybrid rollout will result efficiencies.

We're the and currently growth a an period million, for of sale due of to course several increased items expense align certain Our $XX.X to that benefit consolidated expense leaseback totaling time. year. efficiencies, severance medical X.X% in is salaries as our of levels. XXXX. approximately due areas. in million. model we cost our our increases one-time expenses expense, as areas; claims; salary increased $X advance three better structure operational staffing to driven largely to including and in with due at and due for higher up increase expenses a factors; $XXX,XXX staffing teaching administrative connection of couple the went up operating warrants over rent transaction our additional in a result of with expenses by And that at completed and expenses operating models campuses main both were interim provide prior higher new hybrid to was instructional projection One, line traditional Facility instructions This with and

million, QX $X.X includes EBITDA of stock Georgia add-backs Atlanta, which compensation, adjusted was severance, for and the non-cash campus. rent expense for Our the

our million more between and my expenses million lastly, $XX $XX please adjusted And million million, $XXX X% ranging between year net guidance I'll ranging million remarks capital conclude to to minus $XX and plus refer and For from details, by earnings EBITDA non-GAAP schedules for $X ranging in and to Revenue income release. student $XX the million, full X%, starts million. million, XXXX. our $XXX between $XX QX from reiterating

stay and look Our We that, to horizon. outlook thank year and on to more continue to team this support. the great on to efficiencies optimistic for forward XXXX and operational be call. for with our growth plan in our beyond effort we opportunities continues and sharing And their continued as next entire I see want

to Now, your operator, take the I'll turn the questions. so back we over call can Operator?

[Operator line you. first with from the Instructions] Paris Our Alex of Thank question comes Barrington.

Your line--

Hi, quarter expected results. for a questions. Congratulations than on taking thanks my better third guys,

Thanks Alex.

Sure.

third QX obviously that your expected were and quarter range guidance, pretty Given the $XX for from million $XX.X in implied is results reiterated better revenue. million you wide. $XX.X to guidance for than It's a million

You expectations X.X% with starts third lower quarter in that was was had line line students my new everything that down your with much in than [ph], for than was bit it a or said estimate? point in little prepared pretty your comments my the expectations with

Right.

September. have Somerville sorry, in lower, it November think I'm one didn't and a and campus I our December in we November little was So, October was and -- bit starts in item December,

previously. due than postponed slightly So, lower the we talked It about there. to our was we rate start starts expectations as some

you. Got

suggests XX% math. talk strong fourth but all gives about part be will starts of your year the greater reaffirmed fourth confidence big new so than my at that the up experience What full starts starts in quarter. in comp, students the can you you in XX% a by guidance in is it October? suspect increase that or So I quarter,

Sure.

an that for November in lower quarter guidance, I growth those misspoke close, there's now of our that So, his for guidance bit it the we quarter. the guidance. like of the start because thing we September, were in the October, the talked was little are growth and starts starts hopefully we'll when fourth upside towards had Right And end there be Scott higher in about to to more December. wasn't mentioned the But starts one out a for bit -- anticipating we're take fourth that very the I a full X% our to as and strong it X% that in campus Somerville comments, QX. little about it year will anticipating growth, was

will So, to item the just guidance, to be with at clear, guidance? our lower you just highlighted reiterating be of starts one our probably to regards end mid

guidance to you. positive to starts, X% negative clear then be Got just X%. for year And full the was

EBITDA year, So, the you're to saying of flat, guiding and adjusted numbers on. slightly get you're kind starts year-over-year for revenue for the lower full maybe that so to and

Correct.

about are force thoughts other right, preferred the Thank Okay. one last was as as there? November could A Series you I you. then your And soon Xth? I question. stock, conversion believe thinking What week, X.X%.

Right, I stock was days XXth the November need think XX the it was we the price. so of first time and price conversion I believe it over

I think it's $X.XX. like

days as into like XX of we're think today, that. I

So, we we -- convert the we convert thinking That's points. are to are our earliest if at now. right the able possible will anticipating

many recall, then what How implication be many shares X by And over shares As how something of I million shares? it's common conversion? that or the covered are that? would

the distributed will shares [ph] million X.X I be to converted be and shareholders. Yes,

then dividends that of quarter preferred And every obviously, have you $XXX,XXX occurs. once won't the

Correct.

you. Got

for That'll thanks. Okay, Thank you. now. me it for do

Thanks Alex.

you. Thank

Our Frankel Securities. line Steve next Rosenblatt the comes question with of from

Your line is open.

do think you you're could the learning you in of help us was And to the understand environment? Good extent bit actually have morning. little raising of mechanics you of, rates? much moving price how that hybrid Scott, can actually tuition about versus Maybe increases? how rates, talk this much more tuition raising that kind you a headroom just to

day hybrid that now the night line we tied tuition are the our going model. is our increase program be increases, fact experiencing the to to new tied in well, to isn't with that Sure, it's afternoon and in programs

transition month. longer the afternoon student students, means revenue in time, earning -- the be an make which less delivered the same to been as in but period we've this which historically, over of the a But means pace hybrid So, going acceleration there's morning per greater they're model, at to per revenue. curriculum to the our model we as same the new classes, you're hybrid nighttime and teaching acceleration

place it's in this that's So, Is in increases January the put last necessarily creating uptick. clear? back not tuition that that we

Great. Thanks for a that three do that kind clear. effect? clarification we then next or the quarters this of And for see one-time is kind of

you anticipating as as We should into see going next increases are well that tuition well mentioned, we and XXXX, year. as like X%, X% to

So, more the well we other more as shrink should get it the the to a benefit because of model, by but program month. only transition and programs both as hybrid night some programs, it's as does

does monthly increase So, it said. it -- should Scott revenue, as our

that then out. And would be plan So almost XXXX should I with say us, throughout should

then And in due to Okay. per the lead? market, any changes advertising in you the seen with economy, your online have the meaningful reduction cost

lower strategies looking at I to seen We're of just by we But that constantly overall some per the No, we of economy. anticipate see are guess, to, and due Anything is, vendors, the speak have necessarily as own hoping costs. as efficiencies driven I in cost our lead ways through softness I'd place. more in say say, coming that up. right of now, some we going see the budgeting softness we pricing. haven't we because can't the we we're see process, our -- to to as anything We

efforts? an Okay. have we And your update cash on pay could

would that shorter Sure, some they are programs. or in very materialize term and I slow our say particular, the programs, of I cash pay to mean,

a Let's say our Kindig is off definitely start. slow to program

Show, is to However, excited be I'm will report that featured program. next Dave's show the whole the to dedicated on week, the program

help demand. our kind drive of in to basically cash generating it's term are shorter So, we programs opportunities that versus But that's through interest have that now, us. that any through anything meaningful the partnerships will anticipating some corporate

Okay, you. for now. I all great. have That's Thank questions the

No problem.

you. Thank

of Markets. Our with question Lake comes Martinuzzi next the Street from line Eric Capital

open. Your line is

the you Somerville done a know, have you was just I'm it some that more been had something strategic closing campus. going of behind it Yes, to ask I the profile curious feel after growth profitability the could sure do wanted the it, to about like wasn't put thinking that's could the deliberation. wanted it of I'm cost or have done into that Or to -- where gotten to was of if entertain? -- you trajectory not after sustainable?

look It's Somerville I marketplace in we Lincoln, really what definitely the Island could see with Sure. that programs. campus we does completely to Rhode to mean, our latter, transparent, with the And campus. do our overlap be

if at a see you'd Diagram there. both them, and radius look overlapping XX-mile put around were So, Venn of you to campuses, opportunities a

attractive our Lincoln, didn't avail Island So, it's leaving look more that Boston not for programs frankly, our Island. growing, and Lincoln marketplace structure was campus. just going And themselves to as if we're facility we Rhode as have a just they attractive XXX% something we of the opportunities rent and in the market, in say, it's and to as -- be I'll just Rhode attractive,

past months have negative Okay. the on three talking XXXX, -- we just the student the the and here And average out, about and starts, of nine first kind of if at you look we go we're back the it year. quarters

the half of XXXX? front should be Just first the at front if talked of of negative starts half the half, -- the impact that's XXXX, curious new you in about revenue comps we for weighing the looking students on

well. We're mean, of this continue as I yet not that giving that will we on experienced quarter we any to the guidance obviously, benefits have some as subject. of

given it we and as -- enough of yet. haven't publicly haven't So, we I just refined that

well will in increases point, offsetting our is increases, new tuition as be just hybrid To the Eric, your but experiencing be we're we that that as Right. that down, our carrying population slightly what talked about the will rate model. what

won't kind guidance when of report other, XXXX offsets out one more the So, we guidance. give our but

would be new those students, increase, with tuition those But right?

students those correct. -- Yes,

those. effect lagging Yes, of a

Yes.

Got you.

then starts, And looking on geographically did looked across as campuses? strength students just any kind XXXX the Okay. notice of the you pockets you of geographic

it, was at than performing of, have and always across We that there kind overall, programs, certainly campuses But certain maybe are decrease. better looked you others. a campus always, across when

So, place taking there's something there. broader definitely

But see that negative of kind those So, new and I board just I'll kind stood campuses, and opportunity say, there add always penetrate other. some some would when say I further decreased at By or one was get is, of nothing the say there's definitely we into the even when third we able market campuses, way growth. in out would across to frankly, overall, headwinds. where additional the programs, the you're programs quarter, that adding

end the expect Okay. do And then the the to headcount lastly, finish was at what September, or and out you of your headcount where year? today

headcount, student headcount? saying You're employee or

employee expense? Yes, operating -- headcount

number Well, in our that population Typically, population We're just I the now will right don't end a of me. and decreases students front peak end. by little lower at our bit typically a bit now headcount and year between way year though, graduate. naturally have that

we number, have don't back that I So, you to get can with but that.

out handy. was well. [Indiscernible] that's but some headcount as But in in But you'll and numbers the adjusted we there'll to Though, -- take don't both EBITDA, more fourth have did it some quarter be as quarter, some I in school our well, at add-back see third what the and corporate. at our there those

Thanks questions. Understand. for my taking

you. Thank Eric. problem, No

next with not question I'm on you. the Sharma line from Riley. questions of any queue. in Our Instructions] [Operator further Thank Raj sure comes B.

Your open. line is

you. thank Yes,

out, tight to Is be in is to -- get correct? already XQ I there's to plus like like it in out a fall the looks then causing interest that minus -- to pointed off mean, know starts you or pretty start a Do you've in And that does swing on sort labor general bit growth the see is substantial in X% that Or color? -- the give can so, -- market? I programs? seems I starts. seems changes can So interest pointed interest little X% you What's programs? think programs of a this decline? any comment you me in a I an in

Sure.

going comes with far negative come the it that to out. focusing where as X% range -- to with on as to again, in starts, be So, quarter fourth the I'd regards be as X% would is to that guidance, it

the interest, an fewer a low. into happen into to nothing it's we within penetration people looking -- we to programs the we as by I are auto campuses, typically might that looking hopefully, we're make change. for existing our And nurse to in And and further get the add least kind experience the more that then wants fact become demand start. start is a hoping again, no opting as move regardless at to financial one pay out where weakness our as I unemployment an And give get hybrid that have there Raj, kind we've that growth. does the be really to just across is wants existing model, smoothly, more to are like, we anymore. board. to of students more replicate kind before, one and market also know marketplaces, to No there's But students up that demand affect to As mechanic, have far anticipate us people likely faster program the ways running that and a exactly education trend, their really to of workforce, more And to going more the the again, process of education. students aid as across how their for to think when which jumps that there's they're what I've seen that of to become will enable shorter, flexibility board, stated, recently, gives seen

unemployment of are we And, rate. XXXX. that be low a again, anticipate can there the that kicking-in So, number should we in ways overcome help those

Got it.

And is rate really mentioned previously. we that's strong interest enrollments as lagging bit the is then our very little start a leads and still with our behind can

for color new And -- model, could is the a the beginning model pandemic just COVID excuse you on hybrid hybrid beginning how model, in is this new different substantially on the provide perhaps two years? there some it. -- hybrid this see had When COVID? the implemented last place then what at what this started, from of at me, Or Got is -- has from your how of was been been different?

the forced to remotely. to reaction Sure. model a was COVID Well, being go

we So, we is to basically, the okay, why more so enable online. able during the -- and well, we to which learned of doing all the very very we're spent the going to ended forward, us students or to day just able for how are then continue and going blended do we five is in -- what that hours putting And if it's to up rest receptive maybe going students be is a six students' online us only what being learned for is, optimal process to grow be the blended learning. something our which But to have were day, students things new hours certainly model doing population. coming in the to learning to education, time four them? matter that we design optimal And compared that's so

is evening one takes a of there'll to And per change no as what created we've that revenue in when students. so classes three session, the same that way enabled students session, that in And morning evening one Also do we've kind the sessions, all switch they between us can earnings it from can now a sometimes an of to has go kind may night. and the better we our sessions populate regards in may the student, do to instructor two our theory, change, now equal to in utilize members, place. an it -- length. as structured, happens, afternoon, an because faculty referenced session, And extent to teach of we afternoon our their that's and with is, now can jobs of students pickup students morning and the one advantageous be

this are starting gain the into sections these And out that enroll and format hoping more so day, efficiencies programs the to right? various of as to students we're able those we're time into roll

So, that'll dates, the had we it to really or lot standardized help hundreds dates, with have past, now well down our of start start as we bringing But instructional efficiencies. nine. might we're in and as a

operational operating only as offers in business marketing. will create efficiencies not -- our that So, financial well aid, as but

Got answering Thank it. take I'll for this my Thank offline. you questions. you.

Sure.

Thanks Raj.

Shaw questions in sure you. like no for will Thank closing to the call queue. Scott remarks. the now I over back turn to I'm further

with At by thank very and all our students improving our I'm we are excited for pleased rates. that and our for our progress opportunities operator, you the by core, as today. company. improving us Thanks, our numerous evidenced joining we experience have placement graduation and

planned, Our our financial even as major better aid in in hybrid student are in around model efficiencies and result and will outcomes. initiatives progressing

And look his and the forward to want and we mentioned to we Brian enable shareholder better have men who program next a year. multiple which to early the students. have in Friday. want their serve with women to remain And serve along maximize our thank to we Next this commitment Bye, for Day country as all and the you Atlanta Veterans team students on thank markets. investing employers continue campus in finally, with celebrate our will remarks, replications, opening we I focused day value. served our and new prudently Have capital us speaking to of year, Lincoln to several existing to as our we great constant look who bye.

participation. concludes and gentlemen, today's you your Thank conference Ladies call. for this

disconnect. now may You