Good day, ladies and gentlemen, welcome to the Aspen Group, Inc. conference call. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session, and instructions will follow at that time. If anyone should require assistance during the conference, please press star then zero on your touchtone telephone. As a reminder, this conference is being recorded. I would now like to introduce your host for today's conference, Ms. Janet Gill, CFO. You may begin.
Thank you. Good afternoon. My name is Janet Gill, Aspen's Chief Financial Officer. Thank you for joining us today for Aspen Group's fiscal year 2018 fourth quarter earnings call. Please note that the company's remarks made during this call, including answers to questions, include forward-looking statements which are subject to various risks and uncertainties. These include statements relating to expectations regarding student enrollments and other metrics, revenue guidance, EBITDA, and adjusted EBITDA. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. A discussion of risks and uncertainties related to our business is contained in our filings with the Securities and Exchange Commission mentioned in our press release issued this afternoon. Aspen Group disclaims any obligation to update any forward-looking statement as a result of future developments.
I'd like to remind you that during the course of this conference call, we will discuss adjusted EBITDA and EBITDA, which are non-GAAP financial measures in talking about the company's performance. Reconciliation to the most directly comparable GAAP financial measures are provided in the tables in the press release issued by the company today. There will be a transcript of this conference call available for one year at the company's website. I will begin today by reviewing our financial results for our fiscal 2018 fourth quarter, then will turn the call over to the Chairman and Chief Executive Officer of Aspen Group, Mr. Michael Mathews. To open, quarterly revenues were $7,225,029, a 68% increase from the comparable prior year period. As previously announced, the company delivered a record 1,273 new student enrollments for the quarter, with 980 in Aspen's traditional nursing and other programs.
116 was in Aspen's new doctoral program, and 177 were in the USU FNP and other programs. Please note that today we will focus on 4 types of programs: Aspen University's nursing and other undergraduate and master programs, Aspen University's doctoral programs, Aspen University's brand new hybrid online/on-campus program, and USU's Family Nurse Practitioner and other programs. From a year-over-year perspective, Aspen University had 834 enrollments in Q4 2017, removing conditional accepts. Therefore, the 1,096 Aspen University enrollments in Q4 2018 represented an increase of 31% over the comparable prior year period. Including USU enrollments, the company's 1,273 new student enrollments for the quarter represented a 53% increase from the comparable prior year period. Aspen University's increase in revenues was primarily a result of new class starts rising by 42% year-over-year.
While USU revenues contributed nearly 15% of the quarterly revenues for the company, rising at a faster pace than that was previously projected, approximately 10% for the quarter. Aspen Group's gross profit for the fourth quarter increased to $3,506,254, or 49% margin, representing a 36% increase year-over-year. Aspen University gross profit represented 57% of Aspen University revenues for the quarter, while USU gross profit equaled 27% of USU revenues for the quarter. Instructional costs and services for the quarter rose to $1,531,173, or 21% of revenues. Aspen University instructional costs and services represented 18% of Aspen University revenues for the quarter, while USU instructional costs and services equaled 38% of USU revenues for the quarter. As USU's revenues grow, we expect that its percentage of instructional costs will decline. Marketing and promotional costs for the quarter were $2,039,832, or 28% of revenues.
Aspen University marketing and promotional costs represented 23% of Aspen University revenues for the quarter. While USU marketing and promotional costs equaled 35% of USU revenues for the quarter. As USU's revenues grow, we expect that its percentage of marketing and promotional costs will decline. Also included in marketing and promotional costs are expenses associated with the AGI outside sales force. G&A costs for the quarter were $5,353,495 compared to $2,859,186 during the comparable prior year period, an increase of $2,494,309 or 87%. Aspen University G&A costs represented 27% of Aspen University revenues for the quarter, while USU G&A costs equals 103% of USU revenues for the quarter. We see this percentage decreasing substantially as USU's revenues grow.
Aspen Group Inc.'s corporate G&A costs for the quarter equals approximately $1.46 million, including corporate employees in the New York corporate office, IT employees, rent, non-cash AGI stock-based compensation, and professional fees. Net loss applicable to shareholders was $3,664,485 or diluted net loss per share of $0.26 for the quarter as compared to a loss of $723,729 for the comparable prior year period, an increase in the loss of $2,940,756. Aspen University generated $900,000 of operating income for the quarter. USU experienced an operating loss of $1.29 million during the quarter, while AGI Corporate contributed $3.28 million of operating expenses in the quarter, which included the one-time $1.5 million interest expense related to the extinguishment of the $10 million credit facility. Excluding the one-time $1.5 million interest expense, the adjusted diluted net loss per share, a non-GAAP financial measure, was a negative $0.15.
During April 2018, the company raised $23 million gross through the sale of 3.2 million shares of common stock at $7.15 per share. After offering expenses, the company increased its cash by approximately $21 million. AGI extinguished the $10 million credit facility. The cash balance at April 30th, 2018, was $14.6 million, and total assets are now $41.6 million. Total liabilities are $7.9 million, of which $6.8 million are current. At fiscal year-end, stockholders' equity was $33.7 million. I'll turn the call over to Michael Mathews to provide additional color on our fourth quarter results and to provide an operational update and guidance for our first fiscal quarter.
Thanks, Janet. Good afternoon, everyone. We've been very much looking forward to today's earnings call, as this is the first quarter that USU is fully in our numbers, and we now have 4 business units to discuss. Our traditional Aspen business, which is predominantly nursing, our new Aspen doctoral business, our new USU business, which is predominantly FNP, and finally, our new pre-licensure BSN hybrid degree program, which began its first semester 2 days ago in our initial campus in Phoenix. When I refer to Aspen Nursing or Aspen, it includes the other undergraduate and graduate programs other than doctoral, except when the context otherwise makes clear, and when I refer to USU, it includes FNP and their other programs. As mentioned by Janet earlier, our new student enrollments for our traditional Aspen business rose to 980, an increase of 18% year-over-year.
Internet advertising spending for that unit was up about 30% year-over-year. Our rolling 6-month average cost of enrollment, which we describe as COE, rose moderately on a sequential basis from $1,051 to $1,124. This analysis, of course, compares unconditional enrollments only. The moderate COE increase is partly due to our conversion rate slightly declining from 13.6% to 12.3%, which isn't surprising as the previous January quarter includes 1 of the best enrollment months of the year, which of course is the month of January. Our LTV projection for this traditional Aspen unit, now that we're only enrolling students on an unconditional basis, is $7,350. Therefore, our marketing efficiency ratio which is defined as revenue per enrollment over cost per enrollment, currently sits at 6.5 times.
Last quarter was our first full quarter marketing Aspen's doctoral programs, and it was staffed with a team of 6 enrollment advisors, or EAs. They enrolled 116 doctoral students for the quarter, so they averaged a respectable 6.4 enrollments per month per EA. When you consider that we just started advertising for this program, which means there's little to no organic or referral leads in these early days, the cost of enrollment for the quarter is a pretty respectable $2,159. We expect our COE to decline over the next year as we continue to build each EA's database with doctoral leads and as the organic and/or referral lead counts increase over time. The good news is we're projecting the LTV to be $12,600 in this doctoral unit, which is a 71% higher LTV than our traditional Aspen business.
Assuming our doctoral COE declines in the next year, we're projecting our marketing efficiency ratio for the doctoral business to rise from its current 5.8 times to a ratio equal to or higher than our traditional business, which I just indicated sits at 6.5 times. Let's move to USU, as this is the most significant unit economic news of the day. Our new USU unit, which is primarily FNP, delivered 177 new student enrollments for the quarter. Given an enrollment staffing level of 8 EAs, that's a strong 7.4 enrollments per month per EA. It's especially noteworthy based on the fact that USU to date has limited the number of FNP enrollments to 75 every other month, based on discussions with the California Board of Registered Nursing, which we call the CABRN. Therefore, our initial COE of $1,955 is artificially high relative to the potential enrollment demand.
Should that limit the increase, allowing us to enroll more than 75 students every other month, then the COE would be expected to decline thereafter. Here's the good news. Given the FNP program is a structured two-year program, in other words, it has to be completed start to finish in two years, and given that tuition and fees are approximately $27,000, we're projecting the LTV to be $17,820 in this unit, which is 142% higher than the LTV of our traditional Aspen business. That means our marketing efficiency ratio in this unit is projected to be 9.1 times. Our final business update today is our pre-licensure BSN hybrid online/on-campus program, as the first semester just started on Tuesday this week.
When we announced the program four months ago and discussed the Phoenix market, we mentioned that there were significant wait lists in Phoenix for qualified students wanting to enter a pre-licensure nursing program. We predicted that demand for our program would be strong, particularly given its innovative nature and the cost effectiveness of our program. Well, that's exactly what we've experienced. In addition to some social media marketing, we spent only about $5,000 per week over five weeks, for a total of $25,000 on local radio, and have enrolled 93 students in our first July semester, of which 29 entered with all the prerequisites completed, thereby entering the final two-year core nursing program. The remaining 64 students are enrolled in general education prerequisite courses, which must be completed before being admitted into the two-year core nursing program. Our COE for the campus business is literally less than $300.
Additionally, 28 of the 64 gen ed students that started in July are anticipated to be ready to enter the two-year core nursing program for our upcoming semester starting on November 13th. We anticipate having a wait list for our final two-year core nursing program for the remainder of the academic year, which includes both our November and March semesters. Because of the overwhelming demand for our nursing program in Phoenix, the company several weeks ago began assessing alternative approaches that would allow Aspen University to open a second campus in Phoenix during calendar year 2019. Stay tuned for an announcement related to this in the near future. I'll end my prepared remarks today by providing the seasonality briefing and top-line guidance for the first quarter. As I discussed at length a year ago, as we continue to scale, seasonality has become more pronounced.
Specifically, our first fiscal quarter, May through July, is the seasonal low point because it falls during the summer months. Therefore, our primarily working professional students tend to take less courses in that quarter relative to the other three quarters. By way of example, a year ago in Q4 of fiscal 2017, revenues were $4,289,230. In the following quarter, fiscal Q1 2018, revenues sequentially declined by 1%, or $46,344, to $4,242,886. The following quarter, fiscal Q2 2018, revenues rose sequentially by 14%, or $608,753, to a total of $4,851,639. The company expects the same seasonality effect to occur in the first quarter of the fiscal year 2019. Specifically, Aspen University revenues are expected to decline in Q1 relative to Q4, similar to the prior fiscal year. However, overall company revenues are expected to be flat in Q1 relative to Q4, given the revenue contribution from USU.
Although revenues are expected to be flat sequentially, on a year-over-year basis, the company growth rate in Q1 is, in fact, forecasted to accelerate to approximately 70% year-over-year. That ends our prepared comments for the afternoon. We'd like to open the call to address any questions.
Ladies and gentlemen, at this time, if you have a question, please press the star and the number 1 key on your touchtone telephone. If your question has been answered or you wish to remove yourself from the queue, please press the pound key. To prevent any background noise, we ask that you please place your line on mute once your question has been stated. Our first question is from Darren Aftahi from ROTH Capital Partners. Your line is now open.
Hi, Mike. Hi, Janet. Thanks for taking my questions. I appreciate all the detail in the release. I just have a handful. First, just on the delta between the composition for monthly payment for Aspen Core and then USU, as well as the gross margin, can you just speak to those 2 numbers? I understand USU's ramping up, but should we see the monthly payment numbers and the gross margins on those two businesses start to mirror Aspen over time? I've got a couple follow-ups.
Yeah. Good afternoon, Darren. Michael Mathews. First of all, we announced in our press release earlier today that USU students that are on the monthly payment plan represent 53% of the active student body. As you know, Aspen is significantly higher than that. It's in the 70% range. The only reason those percentages aren't similar is because we just began the monthly payment plan for USU three, four quarters ago, and it's going to take time to get into that 70% range. We fully expect that that's, in fact, going to happen. The other question you're asking is about gross margin of USU versus Aspen. As you could tell by the announcement we just made, that we believe that our MER, our marketing efficiency ratio, for USU is projected to be 9.1 times versus our traditional business, which sits at 6.5 times.
We expect gross margins for USU to be materially higher than the history of Aspen because of the higher MER as a result of the FNP program, which is a structured two-year program. We earn $27,000 in a very rapid two-year period versus our traditional Aspen business where students, they finish in two years on average, but many students finish in year three and four.
Great. On your cost of enrollment and LTV, if I just kind of handicap the numbers you have in the release and use 25% for organic referrals, my math kind of works out. I guess said another way, if I'm diluting your cost of enrollment by that amount for doctoral and USU, I sort of come up with an eight times to maybe 12 times for those two segments. I guess, is there anything that would be a potential headwind to my logic? Then just beyond that, if you were able to expand the enrollment within USU away from the 75 every other month, does that 12 number at the cap have upside? My last question, just as it relates to bad debt, it looks like sequentially that number jumped.
Sequentially, I'm just kind of curious if you can speak to what would have caused that. Thanks.
Sure. Hi, Darren. During this year, we did a very detailed review of every balance. As you know, we completed a program review, and it was completed about 18 months ago. We've done a lot of collection efforts based on that. We made a decision that at the end of the day, any balance, because a lot of those balances are quite old, we wrote them all off. We just felt that that was cleaner moving forward. Yeah, we did collect a lot of it, exactly. We did write it off, then we evaluated what we would need for going forward for reserve.
In terms of your other question, Darren. I think you've analyzed that properly. Aspen today has the benefit because we started marketing Aspen in a significant way in 2012, we really upped the budget when we got the CCNE accreditation for our RN to BSN program in November of 2014. We have a good three to four years of advertising. Of course, enrolling thousands of students. When you get to that size, you're going to naturally have a fairly significant increase in organic and referral enrollments. You're correct, we're in that 20%-25% range today. It's going to take quite a bit of time for those brand new programs to get to anywhere near that level.
We do expect that if we're able to work with the California BRN this month, and if we lift that 75 enrollment cap, which is over every other month currently, then clearly we think the cost of enrollment for FNP could decline quite appreciably.
Great. Thank you.
Thank you. Our next question is from Eric Martinuzzi from Lake Street Capital Markets. Your line is now open.
Thanks. I'm curious, I wanted to sort of pick apart the organic growth rate of the April quarter. You talked about USU being just under 15% of revenue. If I do some quick math there, I'm coming up with, on the legacy business, about 43% organic growth rate. It's just subtracting about $1.1 million from the $7.2 million and then comparing it to a year ago. Does that 43% organic number sound correct?
Yeah, that's in the right range.
Okay.
Understand that our spend rate on a marketing basis for our traditional business is in the 30%-35% range. We obviously shifted budget recently into the doctoral category as well as, of course, spending significant investment dollars with USU.
Mm-hmm. Yep, that makes sense.
If I could just add one other thing. I'm sorry to interrupt, Eric. Historically, last fiscal year, we averaged about $320,000 of spend rate per month. We're over $600,000 now if you look at all of our programs. The overall spending increase is quite significant. I didn't want anyone on the call to think that we're being conservative, because we're certainly not.
The color by segment's appreciated. Just taking a look at that, EBITDA, obviously, or maybe EBITDA I think you broke it out by operating income loss on the USU. Going back to the kind of where does that USU need to get to get to break even as far as the revenue run rate for that business. Again, $1.1 million last quarter or roughly, I don't know, $350,000 a month. If we double that, it seems to me, given the gross margin assumption, we're still probably not break even. Do you have an internal forecast as to when that's kind of self-sustaining from an operating income perspective?
We're looking at the operating income to be about break even on USU by around the end of our fiscal year this year.
Okay.
The revenues should be at least double what they are in terms of run rate today.
Okay. As I look at my own model, given your commentary on the seasonality of Q1 versus Q4 and Q2 versus Q1, I'm probably just a little bit high for both those quarters. I don't know if you care to comment. The consensus number for 2019 is $39 million. That's something that I'm just wondering, is this just a question of the back half is going to be that much stronger, and then the front half has its seasonality issues? Or are you comfortable with that $39 million?
Well, as a company, we have three new business units. We were a business the last several years of having essentially one business, and now we have four, including, of course, the campus business. For us, we've decided that we're just going to provide revenue guidance quarter by quarter at this point because there's so many new and different moving parts. Anyway, we're just providing the guidance for this quarter, and then on next call, we'll provide guidance for the following.
Understand. Okay. Last question for me. Well, actually second to last question. You added a Chief Nursing Officer, Anne McNamara. That news was, I guess it's end of May you put the news out. The implication there was we're going to be expanding beyond Phoenix. I know in your prepared remarks today, you talked about potentially adding another campus in the Phoenix Metro. What about other campuses outside of Phoenix Metro? What's the growth expectation and the reason that you brought on a new Chief Nursing Officer?
Yeah. You're reading the tea leaves very well, Eric. Number 1, expect us to make an announcement relatively soon about a second campus in Phoenix, because we knew that we're going to have overwhelming demand in Phoenix, and even our great expectations were actually surpassed in a very short period of time, only five weeks of marketing. We have a very innovative approach to expanding beyond our existing campus in Phoenix, and we'll of course, talk about that in detail when we're able to make the announcement. We also have employed a third party to do some consulting work on our behalf, to very carefully study the major metros in the U.S. from a supply and demand and wait list analysis point of view.
We expect to make some announcements over the coming quarters as to any other markets that we might look to enter over some given timeframe. We are looking to expand outside of Arizona, yes.
Okay. The last question is a housekeeping item for Janet. You had the equity raise mid-quarter. Curious to know what the current basic shares outstanding are. I assume the number will be on the front page of the 10-K, whenever that gets filed. Where are we at on the shares outstanding?
It's 18.3 million today. Today will be 18.3.
Yeah. Eric, when we file the K tomorrow, you'll see that the share count is 14.2 million. That was what it was for the fourth quarter. That's what backs into the EPS this quarter that we just announced. For the quarter that we're in, now that we have the raise in place, our current outstanding share count for the full quarter will be 18.2. Right? 18.2. Or sorry, 18.3. I apologize, 18.3.
Okay, good. That's helpful. Thank you for taking my questions.
Thank you. Our next question is from Mike Mallow from Craig-Hallum Capital Group. Your line is now open.
Great. Thanks for taking my questions. I wonder if we could just focus a little bit more on the doctorate program. Can you give us a little bit of sense on how big you think that opportunity is? What's the competition like in there, and as you look out over the next couple of years, how big could that be for you?
Good afternoon, Mike. It's Mike Mathews. How are you?
Great.
The doctoral program is a relatively significant size business. Just to give you a feel for addressable market, our RN to BSN program, as I think you're aware, there's about 50,000 nurses that begin RN to BSN programs every year. The FNP category, there's about 30,000 nursing students that enter nurse practitioner programs each year. The doctoral category is about 15,000 per year. Now, please understand that doctoral start in the U.S. is much higher than that, but the programs that we offer, our addressable market is in that 15,000 per year range. It's 50,000, 30,000, and then 15,000, if you look at our three major programs that are online.
Great. When you take a look at the difference in cost, it's bumping up against the BSN program in size. What about competition?
Yeah, there's excellent competition across all categories of higher education. We compete against your traditional non-profit publics. We, of course, compete with traditional private non-profit universities, and then, of course, the for-profits. Most regionally accredited schools offer doctorate programs.
Yeah. Okay. With regards to the FNP program, you're obviously limited to 75 every other month, and I know you're trying to get higher. What could that number go to, or what are you asking for?
It doesn't work that way. The California BRN, as part of the process, they ask us for a growth plan, and we provide them an idea of how many students that we'd like to enroll over a five-year period, both in the state of California as well as across the United States. They don't really come back to us and say yes or no. It's more of a discussion and somewhat of a negotiation. To answer your question specifically, we'd like to see that enrollment level lifted from 75 to 150.
It would be basically 75 a month. Is that what you're sort of thinking?
Yeah. That it would double our current run rate. Yes.
Got it. Okay, great. Just a final question. I know that you had talked about taking USU national and really addressing that need for a number of people out there that are sitting on credits but that don't have degrees. I'm just wondering if you could give us an update with regards to those plans.
Yeah, sure. No problem. One of the limitations of USU when we acquired them, which, of course, we knew going in, was that they only had a couple of undergraduate, what's called bachelor completion programs, within the university. They obviously have a nursing program, undergraduate, they have an education program, undergraduate, and they have a nice business program with a series of excellent specializations. That's all they had other than health sciences. We are in the process of working with the regional accreditor, WASC, to begin a very significant technology degree program with a number of specializations. We're also going to subsequently look to launch a professional studies school, which would include programs like psychology and criminal justice and a number of others, in order to prepare ourselves.
We need a very broad suite of bachelor completion programs in order to go to the mass market in an effective manner. It's going to take us a little bit of time before we'll be ready.
Okay, great. Thanks for the call. Appreciate it.
Thank you.
Thank you. Our next question is from Howard Halpern from Taglich Brothers. Your line is now open.
Hi, Mike. Thanks for taking my questions.
Hi, Howard.
Just to start off, I don't know if you had mentioned it earlier, but what is the annual value of the monthly payment plan now?
The total contractual value of the approximately 4,000 students today is $35 million.
Okay.
That's the full tail. If you took every monthly payment plan student and ran the math as to how many payments are left, that would be your total.
Okay. Moving to the enrollment advisors, could you break down, I guess, how many total you have, and then for each segment or each business unit now?
Yeah. Again, I don't have the numbers right in front of me, but the previous numbers that I gave were as we ended April 30th, and we've increased the center since then. I believe we have six enrollment advisors in our doctoral group today. We have, I believe, 12 enrollment advisors in our USU unit. I want to say we're in the high 50s range. It could be as high as 60 today in terms of the traditional Aspen business. Again, Howard, I don't have the numbers exactly in front of me. I apologize.
Okay. For the doctoral program, how do you envision, I guess, that referral program building as built for the traditional Aspen business?
We have three doctoral programs. We have a doctorate in computer science, doctorate in education, and of course, our DNP, our doctorate of nursing practice.
Right.
We use our traditional marketing methods, which is internet advertising, as well as social media. We also are now using our outside sales force, which we launched in January to help call on, in the case of the education sector, to call on K through 12 districts. Of course, hospitals for potential DNP students. It's a combination of our traditional internet advertising supported by the umbrella outside sales force.
Okay. Well, thanks, and keep up the great work.
Thank you.
Thank you. Our next question is from Jamie DeYoung from Goudy Park Capital. Your line is now open.
Good afternoon, Mike, Janet. Congratulations on a strong quarter. Really impressed that you got core Aspen back to profitability at sub-$20 million in revenue. That's a really impressive feat. Congratulations.
Thanks, Jamie.
Thank you.
Just had a couple of questions for you. Can you give us an update on what the addressable nursing market is today that Aspen and USU are targeting?
Yeah, sure. There's approximately 2.7 million RNs employed in the U.S. today with about 234,000 or nearly 10% are nurse practitioners. The AACN reported recently that there's about 450 Magnet hospitals in the U.S., which is only 10% of all hospitals. Of course, to become a Magnet hospital, one of the parameters is that you have to employ at least 80% of your nurses have to be BSN prepared. We see our largest program, Aspen's RN to BSN program, will continue to enjoy very strong demand for the coming years. It's been reported, I mentioned earlier, that about 50,000 starts occur each year for RN to BSN completion programs, and we see no slowdown to that demand in the coming years.
Nurse practitioner starts, I mentioned to Howard earlier, is projected to average about 30,000 per year While doctoral starts, as I just mentioned, are projected to be about 15,000 per year for the three degree programs that we offer in that category. Finally, I know you didn't ask about this, but in terms of the BSN pre-licensure addressable market, there's just over 6,500 pre-licensure students in Arizona today, which represents about 3.5% of the pre-licensure enrollments in the U.S.
Great. That's helpful. Thank you. You exited fiscal year 2018 with approximately 6,500 enrollments at Aspen and 557 at USU. Can you give me a sense of what the revenue run rate would look like for the company when you're at 12,000 enrollments at Aspen and 3,000 at USU?
Boy, Jamie, you couldn't get a more specific question if you tried. All right. Well, okay. Well, let me try to break it down for you. Aspen's traditional business, which has an annual run rate today of about $25 million, with about, as you said, 6,500 students, that implies an annual revenue per active student of about $3,850. Again, that's annualized. Assuming we have 10,000 enrollments in Aspen's traditional business, we would project an annual run rate for the traditional business of about $38 million. If we had an additional 1,000 doctoral students at Aspen and another 1,000 BSN pre-licensure students, I would project those two businesses would increase the annual run rate by an additional $20 million. USU is expected to have an annual revenue per active student that's at least double Aspen's $3,850. Your question, I think, was 3,000 USU students.
If you have 3,000 USU students, which is more than double the 3,850, you're looking at approximately, what, $23 million? I think that's the math. All told, if the breakout is as you described it, 15,000 total students, I think you're implying that the revenue run rate at that point would be, if I'm doing my math right, it would be over $80 million.
Got you. Actual booked revenue of over $80 million, a run rate of approximately twice that, right?
I think it's the other way around. In other words, the annualized revenue run rate would be over $80, but the booked revenue would be roundabout twice that. Yes.
Okay. Suffice to say that when you reach that level of enrollments, you'll still be capturing less than 10% of your addressable market in each of these degree categories on an annualized basis.
Yeah. Oh, yeah. Of course. Yeah. Because again, you're only talking about, what is it? 10,000, 1,000, 1,000, and then 3,000. Yeah, none of those would be anywhere near 10%. Correct.
Got it. All right. That's helpful. Sounds like you got a long runway still to go here. Thanks so much, Mike.
Yep, you're welcome.
Thank you. Our next question is from Darren Aftahi from ROTH Capital Partners. Your line is now open.
Yeah, I just wanted to ask a follow-up, and I did read it in the release. When you say adding a new potential campus, in calendar year 2019 or fiscal year 2019? I just want to clarify that.
Calendar.
Got it. Thank you.
If the possibility exists, we could do it by the end of the fiscal, but I just didn't want to project that yet.
Fair enough. Thank you.
Thank you. At this time, I'm showing no further questions. I would like to turn the call back over to Michael Mathews, CEO, for closing remarks.
Thank you, everyone, especially for your questions today. I want to thank everyone for joining us this afternoon. Our team here looks forward to talking with you again soon. Have a good afternoon.
Ladies and gentlemen, thank you for your participation in today's conference. This concludes the program. You may now disconnect.