Troy Anderson: Yeah, Raj, this is Troy. The mix, I did comment on high school, specifically 45% of the total. This is for UTI. Military is always in that 15%-ish — 13% to 15%-ish range. And adult makes up the difference. In any given year, we might have a plus/minus few points of swing, frankly, mainly between high school and adult, but we don’t expect anything dramatic there. We’ve talked throughout the year and coming out of last year about investments we made in high school from a field resource perspective. We have some new leadership there as well, and so we are expecting an even stronger performance in high school in ’24 than we had in ’23. And we’ve been transforming the adult side as well. We’ve talked about leveraging call center capabilities more.
We’ve talked about the local versus [indiscernible] and the shorter start times. And so, again, I think we have different things going on in the different channels, net-net, not a material change, probably in the overall mix, but some good tailwinds from a capability and performance perspective coming out of ’23 into ’24.
Raj Sharma: Got it. Great. Thank you for that. And then just moving on, could you comment on the regulatory impact and maybe the 90/10, what numbers you’re exiting with? And also any impact there would be on UTI or Concorde of gainful employment updates?
Troy Anderson: Sure. Yeah. This is Troy. The 90/10, again, we’re in the high 60%s on an aggregate basis, and it’s measured at the OPEID or the school level. But when you aggregate it all up, in the high 60%s, we — some of the Concorde campuses are in the 80%s, but they don’t have a very high military percentage. So again, it’s switching from ’23. The new rule goes into effect for us for fiscal ’24, where the military contribution will now count in the 90%. But we don’t expect any of our schools to touch the wire on 90% and only one or two, again, on the Concorde side, even being in the upper 80%s. So, we’re very comfortable in the 90/10 profile. The gainful, we’ve done, those rules have just been finalized. The first reporting period is — will be next summer.
We don’t see any material risk or frankly really any risk at all. If there is, it’s a very small niche program, probably mainly on the Concorde side, but we’re not concerned about anything we’re seeing on the gainful side. And again, we continue to focus on graduation rates, employment rates, and we just finished our ACCSC reporting cycle, which is the primary creditor across both Concorde and UTI. And once again, we have consistently strong performance there. Never always 100% perfect, but we’re consistently strong, and we think that record stands against anybody in the industry.
Raj Sharma: Got it. Great. Thank you for answering my questions. I’ll take it offline. Thank you.
Jerome Grant: Thanks, Raj.
Troy Anderson: Thank you.
Operator: The next question comes from Alex Paris with Barrington Research. Please go ahead.
Alex Paris: Hi, guys. Congrats on the strong finish to the fiscal year.
Jerome Grant: Hey, thanks, Alex. Thanks for joining us.
Alex Paris: Oh yeah, for sure. So, a lot of my questions have been asked and answered, but I have a couple follow-ups from previous questions. So, with regard to starts enrollment revenue, you said that you’re not getting much of a tailwind at this point from rising unemployment because it hasn’t really risen too significantly yet at this point. But it’s less of a headwind, it’s good to hear. I’m wondering, to what extent do you attribute your strong growth to prospective students evaluating alternatives to four-year colleges. This has been a trend that’s been noted in the press. Are you seeing some lift from that?
Jerome Grant: Well, I mean, we’re thrilled to see the press engage on the notion that college isn’t for everyone. It’s something that we try to get the message out as strongly as we can to, in a sense, give people permission to choose something other than a traditional four-year degree if they’re not so inclined to move down that path. Anecdotally, we don’t have hard evidence because it’s really tough to track when you’re talking to a prospect, “Are you trying to decide between us and going to a four-year school?” But we are seeing anecdotally more students that from a profile standpoint traditionally may not have chosen a two-year school or a tech school, talking about socio and economic backgrounds, FAFSA qualification backgrounds, et cetera.
So, there’s starting to be a little bit of a hint out there that people are seeing these high-demand skills areas for what they are, which is really solid long-term careers. So, it’s good to see that the message is starting to flow through.
Troy Anderson: The other thing I would add, Alex, is as we brought in — and again, Concorde has a very broad offering portfolio. And now, as we brought in the UTI portfolio that we’ve always said, we’re talking to hundreds of thousands of prospective students, the lead generation every year, but historically UTI only had a handful of programs to offer them. Now, as we broaden that portfolio, there’s more for us to talk to prospective students about and supports a growth trajectory.
Alex Paris: Thank you for that. Are the enrollment counselors brought together, or are they separate between UTI and Concorde? And does an enrollment counselor at one or the other institution have the ability to cross-sell the other?
