Grand Canyon Education, Inc. (NASDAQ:LOPE) Q2 2019 Earnings Conference Call - Final Transcript

Aug 06, 2019 • 04:30 pm ET


Grand Canyon Education, Inc. (NASDAQ:LOPE) Q2 2019 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Second Quarter 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]

At this time, I'd like to turn the call over to your host to Dan Bachus, CFO. Please go ahead.

Daniel Bachus

Thank you. Joining me on today's call is our Chairman and CEO, Brian Mueller. Please note, that many of our comments today will contain forward-looking statements that involve risks and uncertainties. Various factors could cause our actual results to be materially different from any future results expressed or implied by such statements. These factors are discussed in our SEC filings, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. We undertake no obligation to provide updates with regard to forward-looking statements made during this call and we recommend that all investors review these reports thoroughly before taking a position in GCE.

And with that I will turn the call over to Brian.

Brian Mueller

Good afternoon and welcome to the Grand Canyon Education's second quarter fiscal year 2019 conference call. During the second quarter of 2019 enrollment in the programs at our partner universities for which we provide services increased to 11.4% to 90,906. This increase includes 3,316 enrollments in programs serviced by Orbis Education as of June 30, 2019. New working adult students attending our partner institutions grew in the low teens year-over-year. On a comparable basis, total enrollment grew 8.1% and new enrollments grew in the high single digits.

I want to begin by addressing the issues regarding to you. There have been leaders in the OPM space and we wish them nothing but the best going forward. However, I want to be clear about how the GCE strategy is different and why we believe we will be successful. Number one, the Grand Canyon University online strategy is the strategy being replicated throughout the country, namely taking academic programs that have been designed to teach traditional students in a face to face environment on a campus and redesigning them to be delivered online to working adult students. This is the quickest and least expensive way to begin operating in this space. Although this space is very competitive, Grand Canyon Education has some significant advantages.

Number one; it has the world's largest and most comprehensive platform to deliver both academic and operational services to GCU and other partners going forward. For the same or very similar revenue arrangements, GCE will offer over twice as many services including operational services that most OPMs don't offer, but will allow programs to be offered at scale. These are fully automated services that include the following; program and curriculum design, the learning management system, faculty services, including recruitment training and assessment, admissions intake including transcript evaluation, comprehensive financial aid services, automated class scheduling, fully develop academic and counseling services including course reminder calls, practitioner