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Strategic Education (STRA)

Participants
Terese Wilke Manager-Investor Relations
Robert Silberman Executive Chairman
Karl McDonnell President and Chief Executive Officer
Daniel Jackson Executive Vice President and Chief Financial Officer
Jeff Silber BMO Capital Markets
Chris Howe Barrington Research
Greg Pendy Sidoti & Company
Randy Heck Goodnow Investment
Call transcript
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Operator

Welcome to Strategic Education’s Second Quarter 2020 Earnings Call. I will now turn the call over to Terese Wilke, Manager of Investor Relations for Strategic Education. Ms. Wilke, please go ahead.

Terese Wilke

Thank you. welcome discuss Education’s and second we this and which call the everyone, announced will we quarter morning. morning to conference Strategic in transaction Good XXXX results Chairman; results and Officer; Jackson, Executive Chief Robert discuss Chief and Daniel to President Officer. today President and us Silberman, With Executive Financial Karl Vice McDonnell, Executive are

Exchange uncertainties Private relevant Act Following remarks, filed call these call on subject materially. Rob, Copies the Strategic other based turn differ the recent Annual may that Safe release on Education’s on to Strategic number be most press available include XXXX. of could in and statements forward-looking current the And and has today’s that provisions may to Education are are results in as Further be risks the with ahead. XX-Ks. to Harbor go and and to to full Report other information future a Please Education’s the cause XX-Q Reform questions. expectations Commission and actual release filings we press for about will are Securities the assumptions, these of statements viewing The well filings Strategic at the over X-Ks, XX-K, made of Rob. identified open this as Form I’d found call and like for the strategiceducation.com. now, to note please Litigation pursuant website that XX-Qs, uncertainties, and of Securities

Robert Silberman

of with over to I two cover. before of of wanted and the with them, set Thank a Carl on regard two comments, particularly Dan press couple to you, With to just the impact releases But gentlemen. lot morning ladies it and of to introductory stage Terese. turn coronavirus the enterprise. good this a our have I the morning And material

we outperformed and a SEI strong budgets and half our pandemic, Indeed, by economic had significant by own caused wide the first notwithstanding of a particularly lockdowns plants XXXX. First, unemployment margin. the coronavirus

of these this knows economic degree shepherded negative having number past, in crisis capability through university that and program. willingness a effect has on team student’s cycles Second, significant enroll unemployment a to a in two the academic prospective our and institutions management

provide drive are term seeing some results. University’s SEI’s While and quarter guidance, on negative University’s which academic forward both never third impact we will that we Capella turn in of summer enrollment, Strayer

model and for Third, the is coronavirus highlighting advantages and comfort us advantages opportunities some pandemic online technology. will with create the the academic attractive of in future. enterprise of our propel also significant These academic our our both

almost University. a For certainly transition of instance, similar we will Strayer make to model online Capella to permanent our fully University

significantly will While our international geographic coordination, their those to footprints maintain we still and we will classes, building, reduce locations be faculty for able brand campus academic and existing costs. associated student in markets physical support,

platform In have to universities to academic the Sophia broader charge self-paced community colleges. addition, academic in our we as model, made of shift announced last we and fourth fully support online quarter, a available all in to its free order

to more academic registered the and online to making March. has And learning take universities decided splendidly. Sophia operated Sophia and the remote students The We XXX,XXX XXXX, for as continue continue we require platform courses announcing have now had over will they are XXXX to have since that more platform year, available.

access providing New we believe achieving as X, a their we of content, announce assets. for fee Australian unlimited our today will a And costs August as the will Laureates SEI. to However, was modest well college for significantly of as student’s lower which excited starting degree, subscription and charge enterprise Zealand in morning this was new we finally, are very it disclosed a release, acquisition academic meaningful separate to

and accreditation the XX School universities hold Australia studying and nation's tracking years. in is University of Zealand and designation while for for New these which graduates as The is only assets; in is Media We the that world Australia, quality Torrens only smaller the it been group. and Design industry. have in university, of Design academic two highest renowned in entity the Media a School in one Torrens investor that its funded entertainment

academic While of are dozen comfortable no investing keep of the are two in. located are markets worldwide, not we a group we quality we which acquisitive, these half platforms naturally strong in the track that of than of a universities part academic highest are and more

So we were when delighted they became available.

close for have financial Capella us seen external be economic of shocks results. will to by the years, investment short we enrollment our the University We your increase summary, University and acquisition, in term year and XX to sufficient capital which affected which occasionally value sources will fund Strayer expect education. and In be last these and believe over institutions strategic worthy XXXX. in academic to end, student we hope of we to additions the We have of have which accretive materially both

our students, However, the and and confidence our by successful experience both on focus maintaining first our students academic universities will our us long also over has achievements that the prosper foremost, given term. of our

students it online, services, we that, given With this the In institutions, greater SEI morning's highest the to our uniquely not academic provide on that Karl? innovation, academic announcements. just positioned quality for and own addition, over to turn Karl more to but and community expertise experience and believe in our as me let to technology, academic details is well. teaching

Karl McDonnell

Good you, everyone. Thank morning, Rob.

cover areas intend As Rob do fair broadly today. a noted, amount I just we key have morning. this to cover four And to

comments our second have I'll financial quarter on results. First, some

the balance quarter provide I'll third and for of outlook preliminary the a Second, year.

And acquisition a of fourth, on affiliated of our new the some on update I'll today initiatives. and laureate an strategic provide couple University I'll Torrens assets announced Third, education. the from add comments we

quarter second financial on second with overall results go will these Dan First in more But quite and quarter though, minutes. few strong. were beginning results, our into a our detail

very X.X% earnings of revenue Our significant enabled quarter, us with a management approached cost generate to expansion. and along margin growth in growth second focused the

growth XX%, Our income with the on and yields lower respectively, to earnings up differential amount income entirely from due interest much XX% operating the our year on to balance sheet. the share of being lower and and large attributable adjusted almost significantly were cash per prior

of Our XX.X% XXX was adjusted up operating points prior basis margin from the year.

of Now, lockdown unemployment half we enrollment back the began which second our quarter, did impact to see on the impact demand COVID the results. in of our the

growing New and and Capella, X% Capella, while X% total and at X% enrollment at Strayer student X% enrollment at grew declined Strayer respectively.

downturn. in at primarily of as a both this between many versus Strayer’s couple academic the time anticipate XX% following And first for zero will undergraduate actually Strayer’s past students on the and Although total demand Strayer enrollment quarters. student be Capella’s within down non less the early been a a attributable current most severe similar its Capella we quarter less at approximately more recession unemployment represents and Strayer of and declined mix, much to will contraction, it down college larger third the focus -- Capella when when and Strayer, several mostly while new enrollment. summer Strayer’s students environment a third seen believe sensitive stages the be new weeks. result prior Strayer’s see still and impact has X%. its severe to University economic XXXX third demand year, stable in by overall likely the XX% quarter for Strayer University, term, education affected University We although is completed of graduate XX% results has did including related students. its reduction environment we between enrollment, non is sorry of enrollment quarter demand being less its its having corporate which learners

operating year, to from to the low year. investments into and the the planning will operating while be for better enrollment quarter be were total their prior preliminary up outcomes, quarter. cost digits year would than flat, flat Strayer’s. revenue And year X% flat operating of into and hold but be project we is adjusted yet, project So XXXX, pay from for visibility that with our prior quarter to be management to both income full up income current with strategic limited efforts, annual unemployment, we continue mid-single if the to in in expenses pandemic assume income have to to pre-tax to priorities Due along increases the the XXXX trends substantially any through we don't to these offset Based new our savings related balance meaning the you fourth the results have and we third visibility, revenue we we areas. our expect will other third and on adjusted

next into will year as As allocated our year. implement part XXXX a further to year. our resources are obviously, to get restructuring of this be this, that into properly heading company the later the And refined we ensure planning intends

call, a demand popularity last to Turning of comments Sophia shift consumer those now earnings the strategic to portal new college where in our our courses. I being I certified with learning, starting made or couple direct sudden online discussed online arising learning; and one more opportunities from digital of with A

general XXX,XXX decided Rob the July Sophia amazing. unique users we offer been have of than popularity end public As of year, quite noted of More more free in registered through XXX,XXX this than that to the March, and has to the early make for courses.

Anyone intend or being of Pre-COVID This to used dollars, college many not the be between the offer will Sophia that university. commitment who buy offer. registered for $XXX. our the of to college August be have collectively, has not are opportunity If for year. $XXX platform, to charged to college free a on if students we of fee subscription opportunity will millions you dollars to paid believe to certainly prior we course assume Sophia per transfer these X, of of to course for in saved example we another when free year another Anyone and hundreds have access have $XXX access who is courses of millions prior a XXs the registered a per class for credit X, remonetize college tuition. $XX a And to this flat Sophia will of On leader on-going converting a X, to August Sophia to month. had a affordability. to unlimited unlimited first full free for for August

And other since more for institutions setting, as highlighted covering the members opportunity online from little area in a instruction, including HBCUs. to of trading. since nation’s future is of XX% helping particularly Another SEI our I them received many has call, transition collectively faculty experience to many no potential have last than their for SEI institutions, than XX requests online of digital more a

a on several have non-SEI and XXX instruction than faculty created online to waitlist. in teaching with date have delivering, practices XXX to in more courses an We members teach best taught additional

requested highest these members of to In Torrens have accretive University three This and XXX% no part in of as with find we practices And latter this be the in is acquisition Rob, XXXX very students, United we to aided institution a investor team talented ground the And is we an institution adult federally close Linda is and me leaders it international. with as XXXX. I'd get highest a said anticipate briefly are in and education and superior have in of producing we best the Like like Capella confident very we've revenue Strayer this accomplish who we is have of the track service source recognized of asset this this merger as possible felt a level exceptional she most will assets record digital like announced quality, fact, led affiliated moving on university assets. morning, the higher strong Capella, immediately in significantly And outcomes. Asia into on which funded we that institutions. primarily their this we from with quality domestic by these Education's charge as finally year the Strayer institutions we today be acquisition desire Australia. comment Brown, States. Pacific our to faculty we Torrens will the that regions. the public now clearly, into report and in provided we found up. new previously, at that CEO, academic consistent to forward, of built and see focuses of Torrens attractive the Today, or Laureate only and moving But by the teach upon has learning. who

complete well planning, and this manner. team have transition which I as We and already more begun current travel SEI and to full the transition confidence team, timely complicated as admittedly be will integration her effective restrictions. with in in slightly Linda have But a

students, and mission express to and and this Linda work to my help like office. gratitude so SEI. continue Dan and to all the their considerable And on-going morning, colleagues Our also second our goal work any opposed many further my remote, is to now to they I'd SEI as Dan? when retention. were they and They finally results. they're to the improve tools more fulfill bring outcomes of team I'll that, when in financial support all ask within her of quarter on And cases, behalf even with in and run and as technologies through tirelessly to to

Daniel Jackson

Karl you, and Thank good morning everyone.

related and non-GAAP that merger as second Please issued references or adjusted the to our quarter release this which for information additional earnings want as in costs. adjusted as exclude expenses well The charges remind earnings results, included everyone that morning financial non-GAAP. non-recurring, to release are results, I First, we including information. are reported refer GAAP numbers the

results, Moving quarter our to and quarter improvement higher total per growth part million Universities Revenue second Strayer second scholarships Capella trend per student nearly was the in granted by on enrollment we than which X.X% uptake than $XXX.X the relatively to quarter, for thus for in in stable discounts than to significantly for a million and for impact the both revenue pandemic. we $XXX.X student. slight quarter and to anticipate the X% courses expected and revenue in University, due driven of the the Capella grew Attrition to quarter better revenue including XXXX expect lower impacted scholarships we and by per attrition of at student offset quarter. students per anticipated learner third the more we discounts third were and compared

year fourth to our to growth quarter. XXX driven to expansion. points $XXX almost quarter for revenue revenue savings to with operating full the basis and shift basis student lower second Adjusted pandemic XX% facilities, and drove income travel, the students and per of than related operating were expected million in points for expenses we XXXX, almost margin paying corporate a be mix X.X% coupled which, on lower Operating compared second expected adjusted mostly project down quarter declined pandemic to relief the measures, healthcare bigger and expenses events, growth XXX due expenses. For we million continued by the about sponsoring $XXX.X in

bad X.X% in revenue additional Our of the debt additional expense bad line of Year-to-date, XXX the of to was for points with due additional the about debt quarter, collections taken after year a which even revenue. reserve reserve as last was equates an considering against percent to weaker we’ve pandemic. basis anticipated

second the tax to the for XX.X% compared diluted the and earnings for adjusted forecasting the grew to is XXXX. share full rate for $X.XX quarter per XXXX. third rate in year $X.XX we're the Our adjusted effective XX.X% quarter quarter And also was which tax

million the during of the compared cash and We sheet in and balance cash $XXX.X quarter quarter cash, cash from the of generated the million $XX.X XXXX million quarter during equivalents, to securities. $XX.X second marketable ended flow. to Moving with and operations

revolver, the for by for $XX.X was second XXXX the Our quarter cash of the payroll million expenditures a we operations of in Capital from were to run payments for unfavorable some period at million of the full large expect of and the XXXX, the compared maintain expand this capital $XX the for vendor expenditures in and $XXX June. in $XX.X end facility XXXX available transaction. timing finally, quarter large timing continue our impacted same and received transaction credit year of million. million commitments close morning, of on $XXX the million million our the we’ve to at at we announcement as lower indicated of the to pending to be estimate our Rob? though $XX end And to between

Robert Silberman

And Karl. answer Thank and you, Dan be to any we’d pleased operator, questions.

Operator

[Operator Instructions] the of from question Our Markets. BMO first with comes Capital Certainly. Silber line Jeff

Jeff Silber

morning. much Thank good and you so

Robert Silberman

Jeff. morning, Good

Jeff Silber

I You to I doing? little just wanted region. as are but the been Why time. the you’ve at how specific the in opposed first you you're a or on U.S. of Europe? talked about curious least going I’m start internationally about buying, assets Asia-Pacific the talking for morning, bit Good some guys know to acquisition. terms outside

Robert Silberman

Asia-Pacific it’s Well, specifically, it’s both and Zealand. Jeff, Australia-New

of but is Asia-Pacific academic an of benefit, markets more region strong working added belief we good add into the of looking predictable there can the some institution U.S. which which English our The We’re extract we can that and and that platform of teaching can here enormous it it’s quality expertise think in regulatory I transfer and academic located to where rule particularly a to very that language, in we the have for the think it our the -- from located market online we about the marry which have we that ability fact law, that cultures the in amount is an value adults and to oversight in be is happens in value.

Jeff Silber

disclosed Based about your you a acquisition looks these Can how justify what helpful. pretty that’s Okay, sizable Laureate schools, that about it you paying on talk relative to multiple. multiple? own price like

Robert Silberman

academic is assets opportunities. of Yes, an is invest, of when but Dan then is you clear, I��m or and be our you sufficient excess and for available, not the available highest that’s opportunity I obviously, when will think sure the Jeff, background view those the -- made advantage but you have the that some quality deal take information to capital closed have accurate --

try that. we the both become we a States that said, they that the and of take meet criteria of and we and I platforms keep of United small outside think States track As when available, United advantage number of in

Jeff Silber

and are bit that? talk you there involved be goals synergy transaction there? get expect etcetera. accretive. significantly Are Okay, a you going about Can you I How to to you mentioned guess immediate the any little

Robert Silberman

of Australia Well, not from There very number Capella. are, that synergies, and may for there a number of we’re synergies and market current technologies is aren’t return as in significant excess our we we some programs, we real generate our where any which a but accretion. one, we’re of what that and combined rates lot you sheet earning on because of and do as looking when be real to kind our nothing and balance at Strayer in math, distinct taking we driver awful equal is accretion synergies associated cost an of the of employing relatively well Jeff business had it is our when capital, have platforms the revenue you with

Jeff Silber

right. All And jump That the makes in one sense. more back finally I queue. before

in next of You goal this all? year. at operating impact of was by I transaction terms had it the think a reaching that end XX% adjusted given low-to-mid margins Does

Karl McDonnell

think Karl. been Jeff. don’t year. so. Hey, the quite focused I management cost We’ve throughout on

Our operating quarter adjusted XX%. was this margin nearly

notional margins at our close should change post that in would we that all. anticipate view the range don’t we mid-XX% So have

Jeff Silber

Okay. jump queue. That’s helpful. really the I’ll Thanks. back in

Robert Silberman

Jeff. Thanks,

Operator

Thank of Paris you. next Alex line And Research. Barrington the with question from our comes

Chris Howe

in regards for corporate Alex. on all additional to Good you’re Capella, color seeing to thus you cadence month-to-month to the respective that, you’ve and Diving far. color regard following up to and and also on in why Strayer the the that sequentially a so sitting what how in can some that morning. regard Thank color you to month-to-month specifically, perhaps impacted is some cadence? This you for results? far in enrollments for provided Chris And saw the provide and Howe what your in institutions bit Strayer enrollments as for regard little deeper

Karl McDonnell

having new that's and starts. monthly Capella product Strayer calendars Strayer note, to and on academic operate Capella different starts thing One quarterly new of student and student only a having University Sure.

the is quarter, because with of their time, has of visibility enrollment. of Strayer always today is in already adverse in and universities ahead for to students for were I quarter inquiries in some quarter to very some moment the So you applications which demand new we the by into back the third we still the second on broadly, see enrolling Capella, early a any that mean completed and part their quarter overall half much enrollment able is why I’d for in student whereas next provide impact Capella third began Strayer say quarter. that

to for because in Strayer, Capella’s I their third wouldn't As comments, enrollment other my because it's better process. have than see when that so non-affiliate better much more enrollments, we’ve in are are economic the the had was said I respect comment early, the I Capella. what corporate case pronounced for corporate so say, can't it so on with much been to today quarter right specific less has traditionally being the And been although Strayer provide than and number it as now. don't periods at to they third me enrollments at downturns, visibility performing any than we channel, affiliated beyond of appropriate early that's with third for substantially quarter results Strayer’s the be quarter

Chris Howe

student Okay for and I new upcoming enrollments it the Strayer given number? quarter I more the to pronounced down, you make was said correct, sure impact for just visibility. what the you a want have mentioned

Karl McDonnell

So number has new provide down third reported you basis that which today, declined quarter students because year-over-year. already for we it's its to and we can second a enrollment, on the completed quarter, X% XX% Strayer year-over-year and Strayer’s

Chris Howe

have? that How fit strained brand be sale? some to market as yet the Are than reflection had you of this may that the high that question, you’ve would been of in a these just still make for to of tracking coming others? along correct. acquisition, that Was global you asset that institutions I this pandemically wanted more are environment my with sure more Just regard current of which And is last other a the currently institutions, dozen quality them then half institutions. mentioned more coming to

Robert Silberman

importantly, are was eye the you don’t economic our kinds like know is have Well, this we I with if and and available don’t phenomenon. distress that anything a Rob, is immediately we Academic think but quality, most indeed pandemic keep the a that, I value. have our is on, COVID affected we maintain anything institutions that by -- the Alex, all institutions is pandemic of of mean source we view temporary permanent it the worldwide of and associated that

we in not lusted ourselves something on and to a considered COVID to short-term impact situation with we’ve concerned that and about overly get of fortunate that after it regard sort hands were was So the to be our available.

Chris Howe

That’s great. the always. have I I color Okay, all as you. Thank and for now appreciate

Robert Silberman

Thanks, Alex.

Operator

[Operator Company. line Instructions] next Sidoti Greg Pendy the Our question from comes of with &

Greg Pendy

topic, Hey questions. some budget guys, Can provide you were? And with Sophia bit Can going drivers how costs secondly for forecast. my with it of us, in thanks forward? and the of free taking color the we what seems thinking you they and on like quarter XX those also costs structural a what should your you on of sort incur? teaching you the Thanks. direct-to-consumer the little Were outperformed of be us type in then, provide significant that offering about did maybe

Daniel Jackson

it take hand the to and I’ll one over then is Dan, this Karl. first Greg, Hey,

better quarter, On it then both lot the the which pandemic last and slightly by revenue per I noted enrollment performance on relative on driven student to earlier were driven then as we expense and primarily was again significantly and better by more what a revenue savings, savings. said front

it and down our as the leading other the directly adapted travel, don't into to on and of employees events, expenses, a pandemic, the cut we situations. we So of healthcare areas part course, which of of froze lock control kind lot were a then big back

to and we big can, I is think as level this on moving it as forward, were return element drivers think prudently of an to to we the cost normalcy. of timing as but definitely of some some I there hopefully we’re manage those So continue going

Karl McDonnell

our respect to with and other and institutions. of online for enablement Sophia Yes expenses incremental

On courses the provided are you be headcount. credit. pass some These transferred for added side, Sophia can we that eventually,

that some of but and have We the student. the we work are people areas savings there of of level Dan’s that offset auditors, hundred maintain that. a really of associated Sophia we part on expense those with integrity audit added more was so in was that thousand and incremental the that these content to dollars by already one expense in are roles that had course training to a So want that created, other than so incremental the academic the of was no high delivering online with few did, we point we

Greg Pendy

a Okay, lot. Thanks that’s helpful.

Operator

question Jeff Silber you. line we Thank have of a Capital with Markets. And follow-up BMO the from

Jeff Silber

your exact Thanks your much. wording, In the I me, Strayer plans I the talk think a forgive fully I University. you remarks, you've expanding you pandemic the know bit have to little and a prepared so online been move don’t that? about but Can about accelerating talked footprint. to

turn some may some You like great. those centers learning into that Capella, but you at centers be have Thanks. on would of the color more

Karl McDonnell

and They've they to important for the Jeff. canceled be in It’s term that for canceled sure, summer on-ground Yes, note we back fall the the term. will spring been Strayer’s term. canceled March, all of classes for

mode being almost no full only in in seats Strayer have a our will pre-COVID, campuses. at on-ground we with about instructional So taught X% classes year of our were gone on-ground overall of one and the

some on-ground the just have makes preferences that flexibility. years, continue already We to in instruction as a markets that who online. on FX major with need is So Other that exceptions students in a than will probably metropolitan international of move have few see markets. we this to opportunity where and/or high going been we to several where move of all last visas select which just students VA sense an students fully provide percentage it over

Robert Silberman

out designed is been the is, were these facilities built wanted thing, just the over last I -- for this built at Jeff, And most is XX Rob. part just to that amplify has one a our years and the campus network XX% was was the period -- lower online in where online described terms XX% or that much, it versus I I classes in were mean classroom. much think participation that XX% -- or ratio our many cases XX% of in Karl and of the

know So we were savings [Indiscernible] footprint shrinking a come advantage off, shrinking from leases footprint. the that already we can we of incrementally taking as were just cost fact those rolling of that the accelerate that

Jeff Silber

that’s great, so much. Thanks Okay, helpful.

Robert Silberman

Yes.

Operator

Heck you. of Investment. comes question And our the from with next line Randy Thank Goodnow

Randy Heck

question. Thanks I my for taking questions. two actually have

percentage a The total that. seasonally roughly one what follow-up year equal then first for the I Strayer of is QX after typical have starts starts? a And

Karl McDonnell

smallest Hey, lowest the far discrete get overall I We but the clearly our of new Karl top cohort. of and students, lowest off have a would that. seasonally head, to annual on Dan you to cohort, it that Randy, back is don’t by and have it’s the on percentage

Randy Heck

trying Okay the and it $XXX million. Zealand than somewhere XX-K less secondly neighborhood looks in Australian is that. to is the properties, what if match up I Maybe it the at of and -- little and Laureate’s New a like looking revenue

or if way, the Assuming who nicely $XX in or by EBITDA -- XX% this remember which that the around since which would at equal, I Rob the I enrollment to million, I’m be grown like reasonably would the margins be $XX is Strategic can’t margins, being has somewhere that million other on number in reading XXXX year-end the question, Am things that Rob there? current said right looks Education’s ballpark think the but I comparable XXXX, and that’s it answered numbers, I think, based correctly. EBITDA a margin think would I ballpark, imply

Karl McDonnell

ballpark, right of Randy, any the disclosure. I included in point we in probably think this you’re at but our haven’t that

saying. point. on say what at So a have is We add lot this to Laureate’s math would probably right I don’t your based

Randy Heck

use of funding cash you sheet all your -- Is or the balance the this are on acquisition. essentially it? of of and majority to going Okay the it

Robert Silberman

Randy, this is Rob.

probably, closed, the our access capital plan. and hopefully several we -- necessary return all sufficient it to do we we’ll highest could finalizing have really for We’re the months capital be and months, obviously, for obligations. six it It capital won’t on optimize it’s get other but financing within of

Randy Heck

Okay, but accretive to and is is to pointed close the earning as it’s you also going this out, money on be balance sheet cash currently the point nothing about highly at nothing. because borrowing

Robert Silberman

accurate. that’s so Yes,

Randy Heck

-- to great ought like on Okay, terrific. Capella a say I acquisition, would your of shareholders pretty the and deal It be happy. the result sounds based on

So, thank you.

Robert Silberman

Randy. Thanks,

Karl McDonnell

Randy. Thanks,

Operator

Executive to call for Rob closing Chairman, will you. the remarks. now Thank further I’m showing I And Silberman, over turn no questions. any back

Robert Silberman

and Thank continuing you, look to operator forward and you. thank to with communicate gentlemen. you We ladies

call have call us you in you. our Thank the quarter. and give questions, third next If to you earnings on talk scheduled we’ll please a

Operator

this today’s disconnect. now Ladies you and participating you call. may for and gentlemen, conference concludes Thank