Grand Canyon Education, Inc. (NASDAQ:LOPE) Q3 2018 Earnings Conference Call - Final Transcript
Nov 08, 2018 • 04:30 pm ET
Good day, ladies and gentlemen, and welcome to the Q3 2018 Grand Canyon Education 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) As a reminder, today's conference is being recorded. I would like to introduce host of today's conference call Mr. Dan Bachus, CFO, you may begin.
Thank you. Joining me on today's call is our Chairman and CEO, Brian Mueller.
(Forward-Looking Cautionary Statements)
And with that, I will turn the call over to Brian.
Good afternoon and welcome to Grand Canyon Education's Third Quarter Fiscal Year 2018 Conference Call. For those of you that are new to this story or missed last quarter's conference call, on July 1st, 2018 GCE consummated an asset purchase agreement with GCU, formerly known as the Gazelle University. Prior to the transaction, GCE owned and operated the University. As a result of the transaction, GCE transferred to GCU, the real property and improvements comprising the University campus as well as tangible and intangible academic and related operations and assets related to the university. And GCU assumed liabilities related to the transferred assets.
Accordingly, GCU now owns and operates the University. In connection with the closing GCE and GCU entered into a long-term master services agreement, pursuant to which GCE provides identified technology and academic services, counseling services and support, marketing and communication services and several back office services to GCU, in return for 60% of GCU's tuition and fee revenue.
Accordingly, the results of operations discussed on this call reflect GCE's operations since July 1st, 2018, as a service technology provider with currently one client GCU. During the third quarter of 2018, enrollment at Green Canyon University, grew at 8.2%. New working adult students attending GCU's online campus grew in the high single digits year-over-year which exceeded expectations. New ground traditional enrollment also increased in high single-digits year-over-year, which also exceeded our expectations.
To give you an idea of the size and scope of services, GCE offered to GCU in the third quarter and could offer to other universities in the future, I am providing the following summary. First, from the curriculum development area for new programs were released to the university for implementation. I want to remind you that GCU is responsible to select on new programs. It is responsible for the content and learning outcomes of the programs and sets the admissions requirements, it also sets the faculty academic requirements to teach in the program. The new programs were a Bachelor of Science in Cyber Security, Bachelor of Science in Health Information Management, Bachelor of Science in Nutritional Sciences and a Master of Science in Nursing with an emphasis in public health nursing.
In addition, there were 10 programs and certificates that were revised or updated. Second, from the faculty services area, there were 22 full-time and 401 adjunct faculty recruited and trained. There were also 192 additional sessions of faculty training