Grand Canyon Education, Inc. (NASDAQ:LOPE) Q3 2023 Earnings Call Transcript

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If you’re in a market and somebody tells you to go to the community college and see what they have to offer or that’s just a long difficult, arduous process that incense people. And so we think now we’ve got a great solution to, the first obstacle was the clinical placements and we fixed a lot of that in the last couple years. And now this second obstacle was that science prerequisites of coursework. We believe we’ve impacted that significantly and so we’re excited now about the next couple years.

Operator: Our next question comes from the line of Gabriel Dietrich with Baird.

Gabriel Dietrich: Sure. Thank you for the call today. I actually work in a different department than Jeff, but I really appreciate the comments and was just curious on your thoughts regarding the recent fine with the Department of Education. Any thoughts on impacts for the organization and just how that communication and dialogue is going for the company.

Brian Mueller: Yes, it’s, we’ve been dealing with the department for five years. And so we’ll continue to deal with it. It’s a — we knew that there was — the fine was coming, and so we got out in front of it and made sure that we told our part of the story. None of what’s going on makes any sense from a logic perspective. We went through a very lawful process to return to a nonprofit institution. That went really, really well. The department for some reason denied our nonprofit status. We don’t know what the reason is. They don’t tell us. And then for four years, we tried to fix it. Eventually, I had to file a complaint. And as a result of that the retaliation started. And so it’s something we have to deal with, but it’s not going to stop what we’re doing.

Things are going unbelievably well here. The desire for what we have, which is four very, very creative platforms where we can deliver education to students based on what their living situation is, their life situation based upon what the nature of it is they need to learn. We can deliver it extremely efficiently. We can do it without major tuition increases, without huge debt levels. We can just do it in an extremely high quality way. And the focus on free speech at a Christian University is very, very attractive to Americans throughout this country. And so we’re in a great spot and we’re going to continue to focus on delivering to students, delivering to organizations, making sure that people are in a position to get a great return on their investment of time, energy, and money.

And so it’s something we have to deal with, but it’s not something that’s going to slow this thing down at all.

Gabriel Dietrich: Thank you.

Brian Mueller: We have reached the end of our third quarter conference call. We appreciate your time and interest in Grand Canyon Education. If you still have questions, please contact myself, Dan Bachus. Thank you very much.

Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.

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