Financial Data and Key Metrics Changes - In Q4, revenue reached $17.9 million, a 40.8% increase year-over-year, driven by a 15.7% rise in new student starts [6][11] - For the full fiscal year, revenue grew 39.5% to $64.2 million, supported by a 41.8% increase in enrollments to 3,101 students [7][12] - Net income for Q4 was $1.2 million, up 27.6%, while full-year net income increased 47.3% to $7.5 million, or $0.59 per diluted share [9][12] - Adjusted EBITDA rose 31.3% to $11 million for the full year [10][12] Business Line Data and Key Metrics Changes - The integration of Contra Costa Medical Career College added 468 students and diversified offerings [8] - The company achieved an 81.8% NCLEX pass rate in nursing and placement rates averaging 74.3% through AHHS and 74.6% through ABHES [7] Market Data and Key Metrics Changes - The healthcare education sector is projected to have over 1.8 million annual job openings through 2032, indicating strong demand for the company's programs [5] Company Strategy and Development Direction - The company plans to continue enrollment momentum through digital marketing and employer collaborations, focusing on high-potential regions [14][15] - New degree and certificate programs are set to launch in October, enhancing the nursing education portfolio [14][20] - The company is exploring additional branches and acquisitions to expand its educational reach [9][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to thrive amid regulatory shifts and highlighted compliance as a competitive advantage [15][16] - The company is well-positioned to benefit from upcoming legislation aimed at expanding access and workforce development in the healthcare sector [15][16] Other Important Information - The company increased its accounts receivable reserve by approximately $700,000 due to observed softness in student payments related to graduate students [9][12] - The balance sheet shows $20.3 million in cash and negligible debt, providing a strong foundation for growth investments [10][13] Q&A Session Summary Question: What was the starts number in the quarter? - The starts number for the quarter was 723 [17][18] Question: When do the new programs start, and what revenue might they deliver? - The new programs are anticipated to start in October, but no forward projections on revenue were provided [20][21] Question: Can you provide details on the $700,000 reserve? - The reserve was based on an analysis indicating a significant amount of graduate students who are late or slowing in payments, with total graduate student balances around $2 million to $2.5 million [25][26] Question: What is the reason for the higher tax rate? - The tax rate was approximately 31% to 32%, influenced by a return to provision adjustment from the previous year [28][29] Question: Are there any capacity constraints at the facilities? - The company has added square footage to existing campuses to accommodate growth and is well-positioned to handle current enrollment levels [33]
Legacy Education Inc.(LGCY) - 2025 Q4 - Earnings Call Transcript