PA
Thank you. Good afternoon. The revenue numbers were quite a bit better than I had anticipated. It looks like the revenue per students were – revenue per student would have been up maybe 6%, 7% if I'm calculating this correctly. Can you talk a little bit about that or what's driving that?
KR
Yes, Peter, so in my prepared remarks, I mentioned that we did have a tuition increase in the year and so that had an increase, as you said, to the revenue per student of about the range that you mentioned.
PA
That would be a fairly dramatic price increase and relative to what you've done in recent years, particularly, in the context of the – I assume the impact of the tuition scholarship grant program. So what – just a little more about your thinking behind that.
AC
Yes so Peter it's Andrew. You're right. The increase is significantly more than what we've done in prior years. We did a marketing study back at the kind of the third quarter of last year where through that study we discovered because the institution has been so horribly priced for so long that there was quite a bit of pricing power available to the institution. And that it actually had quite a bit of runway and opportunity to increase its tuition prices and its fees, if it – so chose to do so. So that information was provided to the institution and they did make a decision to increase that. And you're seeing that reflected.
Now that really only hits approximately 50% of the student population because you'll have to – a little greater than 50%. You'll have to recall that the military population is about 25%. So that those costs don't impact them. And certainly, our education partnership programs receive a discount as well. So those costs don't impact them. And certainly, our education partnership programs receive a discount as well. So those costs would not impact them either.
https://seekingalpha.com/article/4190222-bridgepoint-educations-bpi-ceo-andrew-clark-q2-2018-results-earnings-call-transcript?part=single