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 2025, revenue grew 39.5% to $64.2 million, supported by a 41.8% increase in enrollments to 3,101 students [12][10] - 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 [15] - New degree and certificate programs are set to launch in October, enhancing the curriculum to meet market needs [15][20] - The company is exploring additional branches and acquisitions to expand its educational reach [9][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to benefit from policy support and market demand, particularly in the healthcare education sector [16][17] - The company is committed to transparency and protecting long-term shareholder value, even with increased reserves for accounts receivable [9][10] Other Important Information - The company has a robust balance sheet with $20.3 million in cash and negligible debt, allowing for strategic investments [10][14] - The increase in general and administrative expenses was attributed to marketing investments and professional fees, as well as a conservative approach to accounts receivable reserves [11][12] Q&A Session Summary Question: What was the starts number in the quarter? - The starts number for the quarter was 723 [18][19] 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: What is the outstanding balance related to the $700,000 reserve? - The total outstanding balance for graduate students is approximately $2 to $2.5 million, with a conservative reserve taken for those who are late in payments [26][27] Question: What was the tax rate for the quarter? - The tax rate was approximately 31-32%, 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