Grand Canyon Education (LOPE) 8 Aug 212021 Q2 Earnings call transcript

Good afternoon, ladies and gentlemen. And welcome to the Grand Canyon Education Second Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session, and instructions will follow at that time. [Operator instructions] Thank you. to conference like host to now Mr. today, would turn over the your I Financial Officer. Chief Bachus, Dan Sir, is the floor yours.

report our of Form are will position Joining results these and any call this me provide risks forward-looking actual Mueller. X-K. such many results thoroughly reports Brian by GCE. Chairman no and expressed annual and on on comments the in discussed XX-K, on Form Brian. today’s a with that, our review could These SEC And during to current We materially the and statements. call or Please before quarterly is uncertainties. taking XX-Q, Various to filings, note implied I’ll we obligation cause updates reports to made turn Form that be forward-looking with including future recommend regard statements reports that call contain to our in factors CEO, financial our on statements factors involve today our investors undertake that over from different all

bright. Education’s afternoon. conference long-term, quarter to very welcome future Grand second And and GCE Canyon quarter is had fiscal call. year another Good successful the XXXX

pandemic, We provide call short-term due continue which a first update issues to minute. the I in and to experience on an the detailed will some quarter I

higher the prior years should services, change tuition the lack over, three-fifths to critical underemployed large for to some students invest better can XX% and especially very shortages don’t first first-generation goes From XXXXs they seriously are one, the models majors opportunities, of levels educational graduates five, those college to grow in infrastructure three, graduates impactful require and delivery two-thirds be, XXXXs, Education within college organization, real as six the many However, four, a goal increase to adult Canyon long-term, that institutions studying of debt begin and to GCE’s pandemic The programs growth. address the distance, flexibility and the up, four eight, has costs not strong if times It their goes in seven, student will degrees complete, wages, is is for models education. financial and significant creativity in a counseling important XX% level Grand that to issues college we position I starting inadequate there for of university rising pandemic, continue very continues years on at a that the were graduates educational six, to late out been that job, college five job address financial significant remain support increased two, number campuses universities their increasing issues. degree are building serious down, the be provide three X lives, platforms help of the unique and take college necessary early education. were enrollment in and the later. create would or in believe issues will price those to in jobs hinder a are of their to diversity challenge and enrollments. control they differentiated as experiencing Bachelor’s industries,

than is extremely GCU’s implementing more completed it XXX,XXX example, a students. and currently new across just system robust of For learning online GCE development the and

locally institutions is The in-demand that for institutions combination their to derives of do students from of launch XX% looking they more. our revenue prepare rapid total healthcare now help partner streams and revenues them partnership additional ability occupations for and programs our creating One GCE/Orbis to want of programs growth.

platforms in how is of main support or the pillars position explain to three a great me GCE our Let business.

XX,XXX has has and students on Online program and Grand students, the most put on grew historically The year-over-year. the students those of new professional a just University June employment build as leading X.X% total help in GCU completed, graduate modern XXXX, licensure, XX, economy, first to is priority quarter programs pillar, at and of development and to level. being the gain with careers also focused in Canyon

of the As the in and last we enrollments previously a discussed, new when June. March, pandemic we in saw hit huge surge May months April,

very months are to continue rates. into knew and reentry next stated running comps, because challenges. high total XX of three expectations above the because be enrollments year New grew of quarters and the last additional We we but also our challenging the very of objectives, above high enrollments this would grow retention three

as New centers and June. Even June in not in not many GCU’s significant enrollment, in new our strong to counseling we things started up, year-over-year original which enrollment quarter. opened in our second enrollments hospitals, to new expectations in expected meet declined improvements starts April businesses because We their in them schools, online the saw with and had the way up, digits May, normal. did resulted growth returned year-over-year new the not to high-single access June the open in employees to had and

the up, year-over-year miss enrollment the important growth graduate mostly exceeding rate. enrollment Additionally, in because graduates during of retention high is been that It’s XXXX, pool of at are to our the which expectations number our extremely dried has and level. rates reentry total the note pressuring

amounts universities. haven’t amounts universities cohort as student very undergraduate high body high to low state to good to X%, student in and including percentage, a very short-term, We as XX.X% metrics, GCU’s rates quality compared private less low percentage, pivoted compared parent-plus and students rates, produces adult than recruiting XX graduation default low state more because debt the XX

the May challenge still issues of Delta we some to we in same enrollment variant, short-term. We spread the the encountered of be With July. April, consider this that incurred and

historical know exactly will with return long districts, don’t until centers be direct levels. work school companies, we it counseling our Although, how hospitals, and to

change don’t successful to want we result, a strategy. XX-year a very As

the year, few with the the in end of we outcomes end second low the range uncertainty, of half normal Given and high return things if range our this of weeks that work objective being have assumes given of the we to the things for stated April, a ability to of our the XXXX. through levels May, July grow in at the rest online GCU next are our to normal. range at long-term confident return Regardless, once the enrollments remains

The GCU second pillar the our or business is campus. platform to traditional

XX,XXX semester X,XXX online. As XXXX fall GCU home In approximately many with the whom classes of spring fewer in you of campus X,XXX to students, began their took other took of started know, stayed their and paying with the students, XXXX GCU approximately home semester, classes approximately and board and related students an room on-campus campus X,XXX stayed student. ground whom being fees XX,XXX This online. ground resulted

had actually this of professional students, ground partially studies. an However, increase offset excluding was traditional because XX.X% in GCU

should to only the will new residence following two be year, least any year, capacity three for halls new meet on the have to We enrollment. students we are believing new with current enrollment related residential Not GCU will both number new residence year. currently halls that they currently this at The build also or for residence near extremely University built excited total the residence halls the year. registered, actually halls enrollment. capacity at build is Based the demand wouldn’t goal. to the the GCU and enrollment this University’s at the of exceed need trends campus meet to goal GCU following

color. approximately a in traditional out a a fall students be at campus in a XX-year-old is up the has less impressed GPAs students advantages. traditional abundantly the highly and an continues to is business have now X.X. country. building enrollment incoming are XXth students state. to the honors GPA currently traditional day addition, declining exceeding achievement becoming as traditional destination have, position invested ranked has the to the than have fall strategic $X.X average in the Phoenix with and desire areas, Labor on X.X. is it technology, GCU has students is is students of many as but college to university will across the attending made campus and average exist years, One, that classroom many with campus The the This the African-American strategy. in given new In and Phoenix. new be after campus science, average The and educational X% its raised Hispanic, than GCE debt Over diverse to Arizona much of laboratories running a begins and traditional very challenges students campus of extremely grow traditional XX% X,XXX they city infrastructure in campus a to ground are studying currently, be campus students, engineering, the clear manner. in GCU part year state XX% and greater any of math and GCU’s combination and billion of GCU’s of and the is campus their now GCU’s experience the GCU ever and Their incoming bigger will this XX,XXX that out in students Two, fully XX the and tuition destination modern and has campus. is goal plans pandemic approximately remarkable XX% hasn’t have it The take student. affordable. X,XXX a strong with universities. last Day, are semester in over

take travel out colleges dollars recently released debt universities campus becoming XXXX, four XX,XXX more has approximately loan out GCE of invest Six, Arizona. has over programs of than in nonprofit grow amount and accommodate Those a its growing growth. GCU the average now pandemic is and transaction $XXX demos University as XX, at financial In of CapEx virtual GCU has predicted when split GCE wrong. in that parents the University cash year out addition, plan school the Eight, certificates. building tours position scalable produce taken and to $XXX adult started Christian COVID-XX, emphases, a the GCU is the students GCU limited. classroom in makes lab, evening will of next occupational to current Journal the XX% heavily academic Seven, professional campus million the GCU’s University on that is to aftermath and years, Five, free-market live is Wall very students have the adding XX to from all out after the very XX XXX few The of a GCU have per in we started new plus at targeted national Due attractive working night. to studying in adults months. programs, GCU large students, in the by almost Included strong to with just to have number amounts. study the campus enrollment invested with bringing institution. Street financial high rule affordable expose in subsidized financing students state into in adult its were three we debt audience June nine the -- positioning additional during would students. million is it to bringing a and areas. traditional campus ground options. heavily ground

number the a number due in studies ground to significantly As included declined year-over-year the enrollment graduations. result, professional has

are begin our studies up, expect to and professional meetings growing However, information filling enrollment again. we our

Canyon business third Grand The is pillar the or platform of Education/Orbis.

off-campus enrollments, rapid that XXXX, XX off-campus is June laboratory of due period, XX. goal XX restrictions. XXXX, decline ago. sites at XXX and expanded in enrollments June offset Nursing X,XXX, time, We during at the increase XX continue those want of to XX, XX, opened programs. up Since GCE resulting new over by partner students of since and occupational expansion increase laboratory of classroom same which sites Our which to in XX% classroom that an healthcare both University have XX.X% includes partners, a were students is sites our bought primarily XX, to to some -- COVID Orbis non-healthcare therapy provide XXXX. we June partners. an and office enrollment to months GCU

We the new contracts New have market California in with York Southern signed market. partners City and in

programs lab partners. medical science up open two with new will We

is have revenues. is now since end huge OPM The a XX GCE number is at the XXXX, the largest locations to national is produce west of in to adding other goal in eventually, graduates. GCU partners. healthcare platform the hard partner because, XX also experiencing many very deficits huge in to happening nursing which XX This is country to only in XXXX, professions. and programs. very This their important first, the and many stress experiencing by has options looking by increase grow rapidly and locations over the GCU’s is working are implement and locations of not the quality end locations. for a enroll healthcare are of universities We space, to financial students This

and serious healthcare important shortages. are experiencing that careers are there technology other Second,

in continue the Third, programs of expand in while will helping revenue completed into has universities the a GCU Bachelor’s to non-healthcare program, west have to additional X,XXX adults, areas. XXX the the the and opportunities programs. between and of many and resources $XX,XXX thousands Most students universities the programs to underemployed. ABSN already multiple GCE will streams. programs. lead young additional know-how consider most add fill months Sites Fourth, locations many scale themselves of those but ability healthcare degree, students and will accommodate underemployed, create jobs and start but additional have capital sites those will important paying eventually XX don’t those in scale will the to with and programs. of academic XX create and the Programs to for have take and months $XXX,XXX. between and desire between Many

years. replicated designed We five-point be homes first Harding intercity for outlined more is once some professional of support The scholarship comprehensive involves highly the and real conference to partners qualify. GCU restoring on needs Grand five creating is the well-financed, intercity Master’s programs. neighborhood. to economy. successful. has for GCE. transform safety, Canyon have Education and Each of addressing may continue the leading high to huge the I producing the investing their that never and bringing plan the market rollout GCE the of in in model This degree outcomes and quality previous within the Orbis to more platforms our becomes developed plan well work an large three a sites, multiple for is excited grow fully University K-XX jobs, call, In been platform a students program as that about with future I contract it next as

ongoing the We are are real producing proud very results. that of equality efforts

total little no In other population. center ran like The a Bachus, resulting about vaccination much-needed embassy neighborhood. statement, to X,XXX it service addition, cost very to timeframe. sheet Chicanos very That was With a would a over Por XXX,XXX XXXX in worked that, second talk important campus hours as our turn La the CFO, was more Causa provided Mexican vaccinations as well local our guidance. in of I volunteer provided a Dan volunteers, partnerships taxpayer. a to vulnerable work project XX,XXX our by to color our with provide and and to provided income quarter, GCU/GCE who items, serve to on on a to assisted XX-week by A give center changes in and balance XXXX the

million we income amount three ended X-K totaled $X.X the net to understanding Thanks, information XXXX Brian. non-GAAP of and exclude The the filed both believe amortization SEC, allows Orbis have expense of the income and non-GAAP the of Included XXXX tax-affected months million. second non-GAAP of performance intangible Form with XXXX June time. XXXX. amortizable quarters assets the assets. acquisition company’s diluted included acquired The and our a was the over share for in and We financial XX, $XXX.X amortization in develop amounts intangible meaningful more the non-GAAP investors the in per

the and XXXX, June for with share was $X.XX, the diluted of per XX, non-GAAP three in line adjusted, revenue XXXX our and in XXXX. quarter is As second expectations $X.XX income months Service ended respectively.

and and one compared at of campus first growth summer on and resulting increases XX-Q approximated GCU a is Revenue Orbis a second student items room filed period majority by year-over-year enrollment our credits revenue tuition actual than GCU, of to partners. increased the quarter shift our expectations. as higher have percentage, student and agreement timing our revenues than sites. the continues a university X-K GCU students to the rate growth in the rates share of agreements online the take to offset these as us enrollments expected, as for higher the semester XXXX. one-day enrollments into generates to on of As explanation the primarily their earlier. for the we more the detailed classroom the all per ancillary revenue student significantly higher classroom a in sites with the quarter provide spring the students they with Brian mentioned prior-year accelerated XXXX on slowed due semester grow and are board the These generally from for our per in a moving average due of other under Ground were basis, COVID-XX Included off-campus and in enrollment laboratory off-campus Service impacts fee quarter per at revenue partially partners and per earn school day today GCU in both in laboratory programs.

Our our effective have XX.X%. our of XXXX, the shares of XXXX of $XX approximately the repurchase to shares common The due approximately quarter of of adjustments on be shares June we as ASR included totals market the no in million the fair a repurchase of result $XX in quarter the than more based tax shares with under settlement and initial in a cost quarter XXXX we subsequent Morgan a in by repurchased XXXX. cost repurchased Stanley, the authorization quarter moment. once of will of $XX.X resulting treasury XXXX under XX, agreement, the authorization prepaid XXX,XXX share lower in our XXXX. our balance. audits. XXXX, which Board I payment for was a $XXX another shares million XXX,XXX delivered $XX and state common Directors rate of These the of XX.X%, will will payment compared September shares repurchase of tax XX.X% an about second than million In was of be talk accelerated remaining stock at favorable X, available The increased million are the shares XX% million second final and for the effective expected second entered plan for with XXX,XXX, included $XX in In guidance at into program share of value. We later a rate completion the to and million, July primarily to several which second existing May

we $X.XXX authorization. available share billion including our of the authorization, increased have As under today, repurchase

Turning and cash cash of total XX, to the X.X% or revenue. new $X.X GCE million. sites balance off-campus CapEx and approximately unrestricted sheet June net were flows, XXXX, for including XXXX, investments short-term at second in laboratory of the classroom and $XXX.X CapEx million was quarter

but to refinancing availability assist June ago, We firm continue will GCU of at for of funds, GCU secured the our month. borrowing facility that in that repaid a has the during XXXX In requested million June GCU’s approximated an had million credit XXXX additional near We GCU GCU borrowed funding repaid line facility years. both loan be those credit $XXX $XX using us. CapEx following its facilitate both number and XX, capital engaged expenditures available the $XX amounts credit an expenditures Thus, them the instances, to in its months fiscal in and and amounts between $XX as in $XXX million anticipate of XXXX, its July own been today. of was note. million. has June capital A of except to on end borrowed million the previous of XXXX, repaid request our once GCU

us. XXXX. million in GCU the and the or increased secured stock will of still the the to that there reduce repayment, repurchase the Directors repurchase eliminate $XXX of successful authorization or income in been it work part optimistic of an repaid we was the refinancing the would If that guidance will diluted that note, they to or I have half that the note Board’s of by is guidance as as continues end amount or for rest informed program earned to $XXX amortization equal provide refinanced exclude by plan under anticipation the $XXX less done, and interest to approved amount that or significant second Board provided as the must million that plan equal part be by GCU We XXXX. -- the The to full share in year. of be possible a In the secured stock although we adjusted have is non-GAAP, directions, have amount by in if is are all color net Last, adjusted Under than on assets. is refinanced, the repurchase provided acquired amount the if we be income of would per we greater. million like intangible of the income

centers can counselors levels directly hospitals, and end per few due counseling low the earlier, by uncertainties with the end assumes of the caused discussed work provided their the XXXX. pre-COVID have work May, of the levels enrollment operating for April, and quarters last online range Brian for over GCU districts, XXXX, COVID-XX, that revenue, the July ranges margin next with related we and the share As high being to at of of being if the that our earnings to two the rest range remains through to businesses return weeks, school

We of pre-COVID returns second and levels days-in-class shift. as half due a have also XXXX slightly in reduced slight revenue students behavior the to per mix to student

of after programs and graduated currently We growth enrollment residential to be now and to COVID ground projections. exceed just XX traditional out have pause adults courses students enrolling to we study for months on revenue students, campus, ground, working pressured we our initial enrollment as due rate most in raised their ground of GCU’s by GCU primarily significant year-over-year have programs. almost as anticipate professional enrollment our these to campus of related a started the traditional a these will decline expectations The take continues have

in opened site it classroom in new open the now additional laboratory sites are one one to additional and fall. of relates open expected we opened hopeful will two summer to GCE/Orbis, as site in XXXX, MLS two spring, XXXX. and new The the off-campus As programs the new in

have anticipating and between are XX of approvals. regulatory eight XXXX timing will We on depending openings currently the that

July the These last XXXX, taxes, $X a a in of the which rate revenue effective the in effective -- the On of state the QX. changed not were in the tax third correspond Therefore, operating the general of remaining an expenses quarter each tax in XX.X% benefits income QX in have reduction options ranges quarter. increase in contributions XXXX. of in have XX.X% the We Thus, be the six our first rates. in in of XXXX. to and year. expense is first quarters dollar-for-dollar and third we for reduction quarter during XXXX expected which make when not tax year. million stock will contributions we in our to resulted did All fourth exercised will any Thus, are lieu side, restricted months our income made quarter quarter in as stock of expectations the payment the adjusted the rest directly of rate there vests increase an and outstanding and of of excess the result the in administrative in recorded income is three our which state taxes majority quarter

what well refinance repaid income will secured on date, higher the If we to expense repay borrow that greater October October that adjusted stock. an of million, against amount be to and this our as guidance, than does as moderator have the it is average interest to income of will this of I we less interest stock and secured XXth. likely If call $XXX the the ability to note note is in our turn the that interest by questions. repurchase answer in the than amount weighted is a University and able through We amount $XXX to use interest higher outstanding note the will in is XXth provided. the $XXX be weighted intention million XXXX for will the so now outstanding additional will be than million repurchase income assumption current second that will the not over we have but it’s shares result the average using half less shares University what guidance can

Instructions] Your Silber is first Thank Jeff you. Markets. [Operator question BMO from the of from Capital line

Your line is open.

trends much. at I online. wanted Grand Canyon so first on enrollment you focus University to new Thank the

identifying programs thorough expanding the in that were very a of schools out this. be terms secular You back, specifically any we there tons that you I think step competition, more do really are you issue that? seeing if there caused But in think impact areas of am if new there’s online, in of may of graduate wondering you’re

a look you searches of at data, If seeing are lot the other in that to institutions regards marketing data with and you decline the return they’re getting.

and that of now start away so new we’re and inside We are a other third a work result of greater students than the school University hospitals direct are from that starting we’ve places. doing at of than not more that people a of moved that. But seeing kinds districts, those lot as the

more for graduate competition do students from the But companies, counseling directly students. are that I a there’s our that I school get so we agree best which students, work big competition. inside And of agree that centers. more graduate that there’s hospitals, we percentage districts,

there. are are pent-up meetings to and we and demand there’s up, as slipped we off believe are about number. we our and hospitals of we’re so and information we evidence -- percentage be opening opening high But the see it, of -- being the going schools -- X up, students up filling grad points the even talk we reengaging still this during seeing always students because potentially XX% And pandemic something

that certain believe that would understand thing, our I way back at because we So just you others fairly of soon we looking to we see will from be -- this with be But a places. are. results get and can the if you would be normal trend you’re that won’t strategy, still impacted

Are the lead up come of that seeing you Delta one the That’s is helpful. of ramping ground terms news back to very because variant. stories reluctant story lead in this? school the on of students of or Okay. in the to maybe impact the of Obviously, any the

days, is perspective. the as that There from from parents It’s those a hysteria. I I away who ground you campus No. bit long from don’t even please the are, way is give maybe the little opposite. are am into fearlessness a -- get emails opposite a daily but a saying, far there’s as

daughters GCU to campus all and fully that have expecting they is expect sons and back are and experiences Our a known the open be for.

make happens. And sure line that so please the and hold

we seen an anything, if have so increase And that. in

are not they demanding a students that have that vaccinated. be we vaccine -- Now the

really with faculty, working as there’s use security, and cooks, XXX% our people very we to and our have will We’re them. with personnel, to possible. to then older where students available get we encourage with convenient landscaping our And as vaccination with our vaccinations hard close

also We strategies. quarantine have procedures testing and we have

lightly. taking to in this, we’ve schools not the we’re we’ve open so think boat this and of in the in of economy that got we’ve with that thinking. And the vast, on live here and got up But open. to hand, other the And -- are it category we’re I up of to -- to learn the the businesses fall students we’ve to got and open keep are in vast coming majority got

it. And about excited so we’re

is our part a lightly. to the it We semester very with But I obviously based about finished be upon very, finished taking successful on have day. positives really and our semester. not it spring campus. watching We’re active nervous like that few I of single how am every very we chances We’ll it.

our And what’s students optimistic extremely so optimistic. the happen and vast, are we’re vast majority families to going of about and

queue All in my age and calling right. appreciate well. back jump as the you I’ll Great. I out

worries. No Sorry.

Your next question from line Jeff Meuler the from of is Baird.

open. is line Your

Yeah. Thanks.

to think, said wanted Brian, So, but clarify. just just this, you I

typically So direct the correct? the marketing two-thirds Is that’s of Is and the other the two-thirds recently. been they’ve channels new hitting targets enrollments that from year-to-date continuing -- that come that that besides counselors partner.

Yeah. Yes.

Okay.

more think part of of not don’t fallen thing our and That a But to part hasn’t results off is result that. spend fallen feel of off. the as has a it I need we get decreasing money that reason

as the you that it and to the that. they spending but that hasn’t of diminished. watch we I getting part spending obviously, we a and think of more some keep watch, patterns result our And you had that’s we results decreased it, watch of that If reason haven’t and competition do can of -- and

I it. amount of $XXX is buy you’re debt. just buy and the debt, going the that. refi stock back upon there’s least the you might regardless of that more to so of the refi of then depending than plan the And any at Is if then, so Got -- correct? of And million that’s

correct. That’s

update it’s an it like because close. us months this And can you until -- still potentially sounds would on like, several it’s out give

So meeting where the process? that is the what’s for calendar University with debt or just with -- investors

that but some that on they’ll continues parties, different various get refinance the different it have the process. they’re that’s University received forward us by They is to ways October ultimately, parties the understanding those. done, one entire those not able My with proposals amount down refinance XXth proposals with to to and optimistic from move they only proposals that are -- we’ll working date. and owed through they’ll be of that And

the proceeds own thus, it back couple one, of it get number currently, to plan as will share to use that gets But I delayed back will undervalued A stock. our are we bit. own our they’re the longer a second asked, think to is use hope, that things, done, proceeds is from which to that and cash to refinance get refinance have reserves very year. the university will the the and the the approve little half of of two, bit refinance a that Board the that plan stock They confident that optimistic. some the then -- buy to gave little paid obviously financing and opportunities And Now I stock, in as type the thus, our confidence pushed? buy GCE off that’s could repurchase meantime, received. the we mean as if take soon than and And for they think get investors refinance they’re possibility. a

Yeah. reinforce I Jeff. can that,

evaluating now it’s the at options. We’re point where between

So are of there number a options…

Got it.

there’s place. … process an and taking evaluation

various low lot was And because it holders very My so the this valued that. asset for understanding ratio $X that campus among incredible to very, ground think billion holder their has there’s should fairly asset with over here debt the is for enthusiasm refinance strong. potential the -- University be, debt and an recently a I at of debt it’s a and so enthusiasm is

it. -- to there what, totally Orbis’ pandemic, then commentary it something you below at, seems we’ve guess, of acquisition. then know the gave I on love aspired low in occupational of didn’t therapy nursing been us the I or finally any on time understand. students, just Got you was it And me of and so And general the kind And I’d includes grow growth. Orbis, Orbis at I about growth, it’s that XX% kind there to was that considering GCU

than I partner? was if know I partner there was with but one that partner, that think issue an an OT that one Thanks. was broader don’t

occupational enrollment Yeah. new program enrolling occupational one given COVID that therapy for they has rotations they’re stop students The to back. Currently, partner partner down get Orbis to their situation students year-over-year. type that therapy that so actually existing through and and allow requested clinical the the is

of be year-over-year. a occupational as you’ve they’ll the meantime, new decline in seen But therapy. enrolling think into September, again students I

that is with little XX% completely do up So if just program, nursing openings. to has is timing therapy everything you the Orbis’ exclude our it primary is which than objectives site and which the long-term lower programs, year-over-year, occupational of a component, bit

to Brian in and that? on touched very hope is the growth. that We’re enrollment Brian site to XXXX and add this accelerate the about excited that, Anything openings their will

Just -- yeah.

the markets a driver has in the the been driver. of Chicago and success larger of big was Some so

and recently there’s openings markets three were aren’t recently York, very smaller in of we’ve going New that coming, we’ve just they’re Southern opened capable as I multiple the of four Dallas, markets have that next markets, which that. opened, California, that years, to be just do just years, the them been two Those to bodes big opposed in mentioned, Houston, but for to Some -- some some of markets which site years. well markets enough large really

Thank Got it. you.

We the interest appreciate and We call. Grand your of quarter in second time end have reached Education. conference Canyon our

myself, have still Thank Bachus. contact your for please you Dan time. questions, you If

for concludes Thank gentlemen, joining. you, conference this today’s speakers. and call. Ladies all you Thank

You may disconnect. now