Question-and-Answer Session
Operator
(Operator Instructions). Thank you. Our first question comes from Gary Bisbee of Barclays Capital. Please state your question.
Gary Bisbee - Barclays Capital
Hi guys, congratulations on the quarter.
Kevin Modany
Thanks Gary.
Gary Bisbee - Barclays Capital
I guess, I guess the question is as it relates to demand you've talked about the response rates being up obviously, which grows up despite not spinning much more I guess. We all know you comp a lot of tougher number last quarter, can you give us any color on how strongly flow is and how much is the response rates are up such that, I know you're not going to tell us what you think you'll grow when you lapped that, but it seemed to you like there is still opportunity for attractive new student growth as we look out over the next four quarters, despite much tougher times?
Daniel Fitzpatrick
Yeah, I think you're reading right Gary. We're seeing consistent -- consistently strong response rates as we headed into the second quarter. We're not -- certainly not seeing any slowdown in that regard. Obviously, we're not going to break that down into any kind of detail in terms of what we're seeing but, we're optimistic, and we think that the variables associated with on the front end of our business and we touched on some of those in our prepared comments.
We think those are aligned properly and the advertising market continues to be very favorable and then the response rates for those placements those more efficiently placed advertising spots, the response rates are very strong. So and then sort of handle that we got more experience recruiters handling those increased number of inquiries with regard to our program. So, we're optimistic, we're pretty up beat but I would definitely stop short of giving you any specific number.
Gary Bisbee - Barclays Capital
Okay and than I guess just a follow up question. Can you provide anymore details on exactly how this new lending program works or at least give us some sense of the accounting behind it is likely to work or show up in your book?
Kevin Modany
Sure. Yeah it's a no different on the accounting front and any other private loan program that we've had in the past. So, there is no recourse, there is no reserve requirements on our part. We do have a riskier arrangement but the level of risk here is much higher and besides much higher than historical rates such that that we certainly do not anticipate that ever being triggered. Even with consideration for the current economic environment.
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