Question-and-Answer Session
Operator
(Operator Instructions) We’ll go first to Analyst for Kelly Flynn – Credit Suisse.
Analyst for Kelly Flynn – Credit Suisse
I was wondering if you could give some color on, given the conservative Q3 guidance and the ERP issues, where the confidence comes from to reiterate the annual revenue and margin targets and is there an expected revenue per student acceleration in Q4?
Lois M.Martin
The reason we are reiterating full year guidance is due to the fact that the price increase that we implemented as of July for the back half was slightly higher than what we had anticipated. In addition we have had much higher colloquia than we had expected when we had originally planned the year.
Analyst for Kelly Flynn – Credit Suisse
On the sequential fall in G&A costs are you implementing any cost cuts there and if so, where at?
Lois M.Martin
The leverage in the G&A really reflects the wrap up of the implementation of the ERP along with the continued leverage of the significant amount of fixed costs that are there. There is about I want to say 60%, 65% of the expenses in that category are fixed and therefore as we continue to grow we see very nice leverage there.
Analyst for Kelly Flynn – Credit Suisse
Just one more, what are the target share count and tax rates for Q3?
Lois M.Martin
We provide our annual estimate for the tax rate, it can vary slightly by quarter due to discreet items but our annual estimated tax rate is 35%. We don’t try to estimate what might happen with share count through a quarter. We do obviously report what actual share count is as of the end of the previous final quarter which was 16.6 million common shares.
Operator
We’ll go next to Kevin C. Doherty – Bank of America Securities.
Kevin C. Doherty – Bank of America Securities
I wanted to see if you can just quantify the ERP disruption that you did see to enrollments in 2Q because you mentioned lowest 600 to 800 being cumulative. I’m just curious how that might have played out, is it mostly just the flow through from 2Q or is there going to be an incremental in 3Q as well?
Lois M.Martin
The impact that we saw towards the end of Q2 was around 200 to 300, that would obviously flow through to active enrollments in quarter three and then the different between our 600 to 800 being the impact in quarter three.
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