Financial Data and Key Metrics Changes - Revenue for Q2 2025 grew by 29.2% year over year to $13.6 million, driven by enrollment growth and expansion in high-demand healthcare programs [7][13] - Net income reached $1.4 million, reflecting an 8.5% year-over-year growth [13] - EBITDA was reported at $1.8 million, a 3.6% increase year over year, while adjusted EBITDA was $1.9 million, showing a 10.1% growth [13] - For the six months ended December 31, 2024, revenue totaled $27.6 million, a 30.2% year-over-year increase [13] Business Line Data and Key Metrics Changes - The student population grew by 44.8% year over year to 2,768 students, fueled by strong enrollments and the acquisition of Contra Costa Medical Career College [7][12] - New student starts increased by 3%, reflecting strong market demand and improved outreach strategies [7] Market Data and Key Metrics Changes - The company continues to expand its healthcare program offerings, including surgical technology, sterile processing, pharmacy technician, and dental assistant programs [8][10] - The integration of Contra Costa Medical Career College is expected to unlock new market opportunities and add 14 new programs to the existing portfolio [11][29] Company Strategy and Development Direction - The company is focused on enrollment growth, expanding marketing reach, and partnerships to drive new student starts [15] - There is an emphasis on operational efficiency while investing in growth initiatives and exploring selective acquisitions to enhance the educational portfolio [15] - The company remains confident in its position despite scrutiny in the for-profit education sector, focusing on high-demand allied health programs [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the current administration's potential impact on funding and regulations, indicating no anticipated challenges for current programs [20] - The company is confident in its growth trajectory and commitment to empowering students and driving shareholder value [16] Other Important Information - The company successfully executed its emergency preparedness plan during the Los Angeles fires, transitioning students online with minimal downtime [9] - The acquisition of Contra Costa Medical Career College was completed on December 18, 2024, and has been consolidated into financial results for approximately two weeks of the second fiscal quarter [6][12] Q&A Session Summary Question: Impact of the current administration on funding and support for students - Management is monitoring discussions with the Department of Education and does not foresee challenges regarding funding for current programs, anticipating potential regulatory streamlining [19][20] Question: Details about the new surgical technology program - The surgical technology program is an associate degree offering that was approved in the first quarter and rolled out at the Salinas campus [21] Question: Environment for mergers and acquisitions - The M&A pipeline remains strong, with many single-owner institutions looking for opportunities to exit, which has increased the acquisition pipeline [24][31] Question: Enrollment performance in December quarter - Strong enrollment was noted in cardiac sonography, MRI, and nursing programs [27] Question: Clarification on the integration of Contra Costa Medical Career College - The acquisition added 14 programs to the existing offerings, enhancing the educational portfolio [29][30] Question: Trends in enrollment for January and February - Demand for programs remains robust, with leads performing to projections [33][34]
Legacy Education Inc.(LGCY) - 2025 Q2 - Earnings Call Transcript