Financial Data and Key Metrics Changes - Revenue for Q3 fiscal 2025 reached $18.6 million, a 50.7% increase from $12.3 million in Q3 fiscal 2024, driven by a 70.7% increase in new student starts and a 49.8% growth in ending enrollment to 3,245 students [6][10] - Net income increased by 57.1% to $2.8 million or $0.21 per diluted share compared to $1.8 million or $0.19 per diluted share in Q3 fiscal 2024 [11] - Adjusted EBITDA rose 60% to $3.9 million from $2.4 million last year, reflecting strong operational execution [9][12] Business Line Data and Key Metrics Changes - Educational services accounted for $10.1 million or 54.4% of revenue, up from $6.5 million or 53.1% in Q3 fiscal 2024, indicating investment in instructional staff and program support [11] - Marketing expenses increased to $1.2 million from $900,000, supporting student acquisition efforts [12] Market Data and Key Metrics Changes - The overall nursing NCLEX pass rate is 83%, with an average placement rate of 75.6% through the accreditor ABHES, underscoring the quality of education and success of graduates [7] - Enrollment trends are strong across all six campuses located in areas with robust job growth [9] Company Strategy and Development Direction - The company aims to drive enrollment growth, expand program offerings, optimize operational efficiency, and pursue branching and accretive acquisitions [14][16] - New programs are being added in high-demand fields such as sterile processing and surgical technician, aligning with employer needs [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued momentum, citing strong demand for healthcare professionals and the successful integration of Contra Costa Medical Career College [16][17] - The company is well-positioned to navigate regulatory dynamics and maintain relevance in the market due to its focus on high-demand allied health careers [16] Other Important Information - The company has $17.3 million in cash and $22 million in working capital, providing ample liquidity for growth and acquisitions [9][12] - Capital expenditures for the nine months were $800,000, primarily for campus enhancements and technology upgrades [12] Q&A Session Summary Question: What drove the quarter's outperformance? - Management noted strong performance in medical assisting, nursing, cardiac, and imaging programs, with additional nursing and imaging classes contributing significantly [19][20] Question: What does the acquisition pipeline look like? - Management confirmed ongoing discussions regarding potential acquisitions but did not disclose specific details [26] Question: How should Q4 be framed in light of seasonality? - Management indicated that Q4 is expected to show similar seasonality to previous years, with some starts from Q2 impacting Q3 results [31][32] Question: Can you provide details on the EMT program? - The EMT program is currently approved at HDMC locations, with plans to roll it out to additional campuses pending state and county approvals [34][35] Question: Any updates on neurology programs? - Management stated that while research is ongoing, there are currently no neurology programs offered [36]
Legacy Education Inc.(LGCY) - 2025 Q3 - Earnings Call Transcript