Perdoceo Education Corporation

Thank you for standing by. My name is Jordan and I'll be your conference operator today. At this time, I'd like to welcome you to the Prodocio Education Corporation conference call. At this time, all lines have been placed on mute to prevent any background noise. Should you require any assistance, press star followed by zero on your telephone keypad, and an operator will come online and assist you. Thank you. David Snyder, you may begin your conference.

Thank you, Jordan. Good afternoon, everyone, and thank you for joining us for our second quarter 2023 earnings call. With me on the call today is Todd Nelson, executive chairman, Andrew Hearst, president and chief executive officer, and Ashish Gia, Chief Financial Officer. This conference call has been webcast live within the investor relations section at ProdocioED.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 of 1934. These statements are based on assumptions made by and information currently available to Prodocio Education and involve risks and uncertainties that could cause actual future results, performance, 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 Prodocio's annual report, on Form 10-K for the year ended December 31, 2022, and subsequent 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 change circumstances, or for any other reason. In addition, today's remarks refer to non-GAAP financial measures, which are intended to 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 the GAAP to non-GAAP measures, and is available within the investor relations page of the company's website. With that, I would like to turn the call over to CEO Andrew Hurst. Andrew?

Thank you, Davis. and good afternoon to everyone joining us on this call. I would like to begin by thanking our faculty, student support staff, and all our other employees for their continued dedication in educating and serving our students. Second quarter operating results came in ahead of our expectations, primarily due to further improvements in student retention and engagement. As our faculty and student support teams continue to focus on improving academic outcomes, and student experiences. We believe this ongoing improvement in student retention and engagement is supported by the various operating changes and student initiatives undertaken over the past few years. A quick recap of some of the key ones include prospective student outreach and admissions changes that focus on enrolling students who we believe will be more likely to succeed at one of our academic institutions as well as other enrollment process changes that allow us to better serve and onboard new learners in a more meaningful and efficient way. Second, investments to upgrade our student serving and support technology while continuing to leverage data analytics and machine learning that enable more timely and relevant engagement with our students. Third, pandemic era governmental responses and other federal aid initiatives simplified processes for students to receive the financial support needed to continue their education, leading to higher retention and engagement. And finally, sequential growth experienced in our corporate partnership programs as our institutions continue to work with corporations that sponsor tuition assistance programs to provide a debt-free education for their employees. Now, Let me provide further details regarding our operating results for the quarter. We reported second quarter net income of $54.7 million, or 80 cents per diluted share, while adjusted earnings per diluted share, which excludes certain significant and non-cash items, was 61 cents. A quick note on total enrollments. In general, enrollment metrics for both our academic institutions were supported by improved student engagement and retention. At CTU, total student enrollments remained relatively flat as compared to the prior year quarter. A negative timing impact due to the academic calendar redesign was mostly offset by underlying organic enrollment growth due to improved student retention as well as continued growth in the corporate partnership program. Additionally, we are pleased to announce that on July 21, 2023, the Higher Learning Commission informed CTU that it had acted at its meeting on July 17, 2023, to continue CTU's accreditation, with its next reaffirmation of accreditation scheduled for 2032-2033. At AIUS, total student enrollments decreased by 14.2% as compared to the prior year quarter, driven by operational changes made in prospective student admissions, outreach, and enrollment processes. Ashish will provide more color on these results and his prepared remarks. Finally, on the technology front, we remain committed to investing in and upgrading our technology to further enhance academic experiences for our students. We believe technology is an enabler and a differentiator for us, and we will continue to leverage data analytics and machine learning to provide our students with a more relevant and meaningful experience. Over the past two years, we've committed to various investments in this area and will continue to invest as appropriate through the remainder of 2023. With that said, I would now like to turn the call over to Ashish for a deeper review of our operating performance for the quarter. Ashish?