Aspen Group, Inc. (NASDAQ:ASPU) Q4 2019 Earnings Conference Call Transcript
Jul 09, 2019 • 04:30 pm ET
(Operator Instructions) Our first question comes from the line of Darren Aftahi from ROTH Capital Partners. Your question, please.
Hey, guys. Thanks for taking my questions and nice quarter. Just a few if I may. The enrollments on the FNP program, Mike, can you talk about is that move to beyond kind of an every other month enrollment? And if so kind of when did that start or when will that start? And what's kind of the trend line for the enrollments? That's my first question.
You talked a little bit about pre-licensure and the unit economics there. You I think said next quarter -- the current quarter we're in, you expect it to be profitable. I guess with a year under your belt with one campus, can you maybe give us an understanding if a year time frame with upfront capital costs and a year of losses, is -- that's kind of the expectation for each campus in terms of how much upfront capital cost will be required to get to break even?
And then third on the USU. In the quarter you just reported, I didn't quite catch it. Was that business break even or is it still losing money? And then what's your expectation for USU in terms of turning adjusted EBITDA positive? Thank you.
Thanks for the question, Darren, and appreciate it. It's Mike Matthews. I'll take the first two questions and then I'll let Joe handle the third question. So in terms of enrollment expectations for USU, we just completed the year with 1,060 enrollments which as I mentioned earlier with LTV of 17,820 that's delivered bookings of about $18.9 million. We're continuing to enroll students every other month. We -- at this point, we feel it's a better -- it's more effective operationally to continue to start every other month rather than every month, partly because the FNP program, throughout the program program requires a series of weekend immersion, then we find it easier to manage that every other month. We do expect this year to grow enrollments for fiscal year 2020 by approximately 30%. So we're guiding to about 1,375 enrollments for the full year, which will give you bookings of about $24.5 million. So that's the plan for USU, again to grow enrollments approximately by 30% year-over-year. And I think that delivers bookings growth from now about $19 million to nearly 25 million.
From a campus perspective, as we've mentioned previously, we estimate that our CapEx for each campus that we launch is going to be about $1 million. However, HonorHealth which is the campus that we're opening in about six to eight weeks, that's different, because we were able to utilize their building and they had a lot of equipment already in place. So we're projecting the cost -- the CapEx for that to be in the $600,000 to $700,000 range. So that'll be more cost effective.
The first campus -- our original campus currently that has 396 active students, again that's