Career Education Corp. (NASDAQ:CECO) Q3 2019 Earnings Conference Call Transcript

Nov 06, 2019 • 05:30 pm ET

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Career Education Corp. (NASDAQ:CECO) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day and welcome to the Q3 2019 Career Education Earnings Conference Call. [Operator Instructions]. I would now like to turn the conference over to Mr. Chris Donovan with Alpha IR. Please go ahead.

Analyst
Chris Donovan

Thank you Ashley. Good afternoon everyone and thank you for joining us for our third quarter 2019 earnings call. . With me on the call today is Todd Nelson President and Chief Executive Officer; and Ashish Ghia Senior Vice President and Chief Financial Officer. This call -- conference call is being webcast live within the Investor Relations section at careered.com. A webcast replay will also be available on our site and you can always contact the Alpha IR Group for Investor Relations support. Let me remind you that this afternoon's earnings release and remarks made today include forward-looking statements as defined in Section 21E of the Securities Exchange Act. These statements are based on assumptions made by and information currently available to Career Education and involve risks and uncertainties that could cause actual future results performance and business prospects and opportunities to differ materially from those expressed in or implied by these statements.

These risks and uncertainties include but are not limited to those factors identified in Career Education's annual report on Form 10-K for the year ended December 31 2018 and other filings with the Securities and Exchange Commission. Except as expressly required by the securities laws the company undertakes no obligation to update those factors or any forward-looking statements to reflect future events developments or changed circumstances for any other reason. In addition today's remarks refer to non-GAAP financial measures which are intended to supplement but not substitute for the most directly comparable GAAP measures. The earnings release that accompanies today's call contains financial and other quantitative information to be discussed today as well as the reconciliation of GAAP to non-GAAP measures and is available within the Investor Relations page of the company's website at www.careered.com. With that I'd like to turn the call over to Todd Nelson. Todd?

Executive
Todd S. Nelson

Thank you Chris. Good afternoon everyone and thank you for joining us on today's call. We're pleased with our third quarter and year-to-date results that have been supported by positive operating trends. We have and will continue to focus on further enhancing the academic quality of our institutions while improving student experiences retention and academic outcomes. Our operating results thus far underscore those efforts. Some key highlights for the quarter include: first revenue was up 6.4% primarily supported by total student enrollment growth of 6.1% with both universities contributing to this growth. Second we're experiencing better-than-expected improvements in retention a trend that has continued into the third quarter. Driven by these improvements we now expect our full year 2019 adjusted operating income and enrollment outlook to be ahead of our previously provided outlook. Ashish will provide more color on these updates during his remarks.

Third we continue to see consistent levels of prospective student interest and are being well served by our admissions and advising support