Adtalem Global Education Announces Strong Fiscal Year 2024 Performance; Initiates Fiscal Year 2025 Guidance Exceeding June 2023 Investor Day Projections
Adtalem Global Education (NYSE: ATGE) reported strong fiscal year 2024 results, with total enrollment up 10.0% year-over-year for Q4 and revenue up 9.2% for the fiscal year. Key highlights include:
- Q4 revenue: $409.9 million, up 12.4% YoY
- FY2024 revenue: $1,584.7 million, up 9.2% YoY
- FY2024 diluted EPS: $3.39; Adjusted EPS: $5.01, up 19.0% YoY
- Total student enrollment: 83,321, up 10.0% YoY in Q4
- Chamberlain University: 6th straight quarter of enrollment growth, up 10.4% YoY
- Walden University: 4th straight quarter of enrollment growth, up 11.3% YoY
Adtalem also initiated FY2025 guidance, projecting revenue of $1,660-$1,700 million and adjusted EPS of $5.60-$5.85, exceeding previous projections.
Adtalem Global Education (NYSE: ATGE) ha riportato risultati solidi per il fiscal year 2024, con un aumento del 10,0% delle iscrizioni totali rispetto all'anno precedente per il Q4 e un incremento del 9,2% dei ricavi per l'intero anno fiscale. I punti salienti includono:
- Ricavi Q4: $409,9 milioni, in aumento del 12,4% YoY
- Ricavi FY2024: $1.584,7 milioni, in aumento del 9,2% YoY
- EPS diluito FY2024: $3,39; EPS rettificato: $5,01, in aumento del 19,0% YoY
- Iscrizioni totali degli studenti: 83.321, in aumento del 10,0% YoY nel Q4
- Chamberlain University: 6° trimestre consecutivo di crescita delle iscrizioni, in aumento del 10,4% YoY
- Walden University: 4° trimestre consecutivo di crescita delle iscrizioni, in aumento dell'11,3% YoY
Adtalem ha inoltre avviato la guida per il FY2025, prospettando ricavi di $1.660-$1.700 milioni e un EPS rettificato di $5.60-$5.85, superando le proiezioni precedenti.
Adtalem Global Education (NYSE: ATGE) reportó resultados sólidos para el año fiscal 2024, con un aumento del 10,0% en la matrícula total en comparación con el año anterior para el Q4 y un incremento del 9,2% en los ingresos para el año fiscal completo. Los aspectos destacados incluyen:
- Ingresos Q4: $409,9 millones, un aumento del 12,4% interanual
- Ingresos FY2024: $1.584,7 millones, un aumento del 9,2% interanual
- EPS diluido FY2024: $3,39; EPS ajustado: $5,01, un aumento del 19,0% interanual
- Matrícula total de estudiantes: 83.321, un aumento del 10,0% interanual en el Q4
- Chamberlain University: 6to trimestre consecutivo de crecimiento en matrículas, con un aumento del 10,4% interanual
- Walden University: 4to trimestre consecutivo de crecimiento en matrículas, con un aumento del 11,3% interanual
Adtalem también inició la proyección para el FY2025, proyectando ingresos de $1,660-$1,700 millones y un EPS ajustado de $5.60-$5.85, superando las proyecciones anteriores.
Adtalem Global Education (NYSE: ATGE)는 2024 회계연도 강력한 실적을 보고했으며, 전체 등록 수가 전년 대비 10.0% 증가하고 Q4에서 수익이 9.2% 증가했습니다. 주요 사항은 다음과 같습니다:
- Q4 수익: $409.9백만, 전년 대비 12.4% 증가
- FY2024 수익: $1,584.7백만, 전년 대비 9.2% 증가
- FY2024 희석 EPS: $3.39; 조정 EPS: $5.01, 전년 대비 19.0% 증가
- 전체 학생 등록: 83,321, Q4에서 전년 대비 10.0% 증가
- Chamberlain University: 6분기 연속 등록 증가, 전년 대비 10.4% 증가
- Walden University: 4분기 연속 등록 증가, 전년 대비 11.3% 증가
Adtalem은 또한 FY2025 전망을 시작했으며, 수익을 $1,660-$1,700백만, 조정 EPS를 $5.60-$5.85로 예상하여 이전 예상치를 초과하고 있습니다.
Adtalem Global Education (NYSE: ATGE) a annoncé des résultats solides pour l'exercice fiscal 2024, avec une augmentation des inscriptions totales de 10,0% par rapport à l'année précédente pour le T4 et une hausse des revenus de 9,2% pour l'exercice complet. Les points forts comprennent :
- Revenus T4 : $409,9 millions, en hausse de 12,4% en glissement annuel
- Revenus FY2024 : $1.584,7 millions, en hausse de 9,2% en glissement annuel
- EPS dilué FY2024 : $3,39; EPS ajusté : $5,01, en hausse de 19,0% en glissement annuel
- Inscription totale des étudiants : 83.321, en hausse de 10,0% en glissement annuel au T4
- Chamberlain University : 6ème trimestre consécutif de croissance des inscriptions, en hausse de 10,4% en glissement annuel
- Walden University : 4ème trimestre consécutif de croissance des inscriptions, en hausse de 11,3% en glissement annuel
Adtalem a également lancé des prévisions pour FY2025, projetant des revenus de 1.660 à 1.700 millions de dollars et un EPS ajusté de 5,60 à 5,85 $, surpassant les prévisions antérieures.
Adtalem Global Education (NYSE: ATGE) hat starke Ergebnisse für das Geschäftsjahr 2024 gemeldet, mit einer Gesamtanmeldung, die im Jahresvergleich um 10,0% gestiegen ist im Q4 und einem Umsatzanstieg von 9,2% für das gesamte Geschäftsjahr. Die wichtigsten Highlights sind:
- Q4-Umsatz: $409,9 Millionen, ein Anstieg von 12,4% im Jahresvergleich
- FY2024 Umsatz: $1.584,7 Millionen, ein Anstieg von 9,2% im Jahresvergleich
- FY2024 verwässerter EPS: $3,39; bereinigter EPS: $5,01, ein Anstieg von 19,0% im Jahresvergleich
- Gesamte Studierendenanmeldungen: 83.321, ein Anstieg von 10,0% im Jahresvergleich im Q4
- Chamberlain University: 6. aufeinanderfolgender Quartal mit Anmeldewachstum, ein Anstieg von 10,4% im Jahresvergleich
- Walden University: 4. aufeinanderfolgender Quartal mit Anmeldewachstum, ein Anstieg von 11,3% im Jahresvergleich
Adtalem hat auch die Prognose für FY2025 eingeleitet und erwartet Einnahmen von $1.660-$1.700 Millionen und einen bereinigten EPS von $5.60-$5.85, was die vorherigen progonosen übertrifft.
- Total enrollment increased by 10.0% year-over-year in Q4 2024
- Revenue grew by 9.2% year-over-year for fiscal year 2024
- Q4 2024 revenue increased by 12.4% year-over-year to $409.9 million
- Adjusted EPS grew by 19.0% year-over-year to $5.01 for fiscal year 2024
- Chamberlain University reported 6 consecutive quarters of enrollment growth
- Walden University achieved 4 consecutive quarters of enrollment growth
- FY2025 guidance projects revenue growth to $1,660-$1,700 million
- Adjusted EPS guidance for FY2025 set at $5.60-$5.85, exceeding previous projections
- None.
Insights
Adtalem Global Education's fiscal year 2024 results demonstrate strong financial performance and growth. The company reported a
The company's robust cash generation allowed for significant shareholder returns through
Looking ahead, Adtalem's fiscal year 2025 guidance suggests continued growth, with projected revenue of
Adtalem's impressive
The company's success can be attributed to its strategic focus on healthcare education, aligning with the growing need for healthcare professionals in the U.S. The sustained enrollment growth across multiple quarters suggests that Adtalem's educational offerings are resonating with students and meeting industry demands.
As the leading healthcare educator in the United States, Adtalem is well-positioned to capitalize on the ongoing healthcare workforce shortages and increased emphasis on professional development in the sector. This market positioning bodes well for continued growth and potential market share expansion in the coming years.
Adtalem's "Growth with Purpose" strategy appears to be yielding significant results, as evidenced by the strong financial and operational performance in FY 2024. The strategy's success is reflected in the consistent enrollment growth across all educational segments, indicating effective execution of the company's expansion plans.
The company's focus on operational discipline is evident in its ability to translate enrollment growth into substantial revenue and earnings increases. This suggests that Adtalem is successfully managing its cost structure while scaling operations.
Adtalem's balanced approach to capital allocation is noteworthy. The combination of share repurchases, debt reduction and maintaining a low leverage ratio demonstrates a commitment to creating shareholder value while maintaining financial flexibility. This prudent financial management positions the company well for future growth initiatives and potential market opportunities in the dynamic healthcare education landscape.
Total enrollment up
Revenue up
Fiscal year 2024 diluted earnings per share
Fourth quarter and fiscal year highlights
-
Revenue
, up$409.9 million 12.4% year-over-year for the fourth quarter, and fiscal year revenue , up$1,584.7 million 9.2% year-over-year -
Total student enrollment 83,321, up
10.0% year-over-year for the fourth quarter -
Chamberlain University sixth straight quarter of total enrollment growth, up
10.4% year-over-year -
Walden University fourth straight quarter of total enrollment growth, up
11.3% year-over-year - Medical and Veterinary segment third straight enrollment period of sequentially improved year-over-year total enrollment trends
-
Execution against Growth with Purpose strategy, fiscal year GAAP net income
and fiscal year adjusted EBITDA$136.8 million , up$377.5 million 9.9% year-over-year
Fiscal year capital allocation
-
Repurchased
of shares,$261 million remaining under$212 million Board authorized share repurchase program through January 2027$300 million -
Repaid
of outstanding Term Loan B balance on Jan. 26, 2024; remaining$50 million Term Loan B balance repriced, reducing interest rate by 50 bps$253 million - Net leverage 1.2x as of June 30, 2024
Fiscal year 2025 guidance
-
Revenue
to$1,660 million $1,700 million -
Adjusted earnings per share
to$5.60 $5.85
“This year was a fundamental chapter in Adtalem's journey, further solidifying our market leading position in healthcare education. Through the rigorous implementation of our Growth with Purpose strategy, we have significantly broadened our impact culminating in
Financial Highlights
Selected financial data for the three months ended June 30, 2024:
-
Revenue of
increased$409.9 million 12.4% compared with the prior year. -
Operating income was
, compared with$68.5 million in the prior year; adjusted operating income was$39.6 million , compared with$80.1 million in the prior year.$69.9 million -
Net income was
, compared with$49.4 million in the prior year; adjusted net income was$22.2 million , compared with$52.8 million in the prior year.$45.3 million -
Diluted earnings per share was
, compared with$1.28 in the prior year; adjusted earnings per share was$0.50 , compared with$1.37 in the prior year.$1.03 -
Adjusted EBITDA was
, compared with$97.4 million in the prior year; adjusted EBITDA margin was$83.3 million 23.8% , compared with22.8% in the prior year.
Selected financial data for the fiscal year ended June 30, 2024:
-
Revenue of
increased$1,584.7 million 9.2% compared with the prior year. -
Operating income was
, compared with$217.1 million in the prior year; adjusted operating income was$168.2 million , compared with$308.8 million in the prior year.$287.6 million -
Net income was
, compared with$136.8 million in the prior year; adjusted net income was$93.4 million , compared with$201.8 million in the prior year.$192.2 million -
Diluted earnings per share was
, compared with$3.39 in the prior year; adjusted earnings per share was$2.05 , compared with$5.01 in the prior year.$4.21 -
Adjusted EBITDA was
, compared with$377.5 million in the prior year; adjusted EBITDA margin was$343.4 million 23.8% , compared with23.7% in the prior year.
Business Highlights
-
Today, we announced the intention to expand into the
Kansas City market with our 24th Chamberlain location designed to accommodate approximately 550 students, poised to address provider shortages in the area. -
In July, Chamberlain welcomed students at its newly relocated
Phoenix campus, featuring a modernized learning environment and expanded SIMCARE CENTERTM, with location capacity of approximately 1,100 students. This hybrid campus is built to house our second Physician Assistant program location. - Chamberlain expanded its specialized nursing education Practice Ready. Specialty Focused.™ (PRSF) model through a partnership with the American Association of Critical-Care Nurses (AACN), offering an in-depth introduction to caring for acutely and critically ill patients and their families. The AACN offering joins other specializations in the PRSF model, including emergency nursing, nephrology, home healthcare and perioperative nursing.
- Walden launched the first phase of its website redesign in July, offering students simplified navigation, comprehensive program information and admissions resources. The updates lay the foundation for further enhancements to Walden’s digital learning platform, with more planned throughout fiscal year 2025.
-
Adtalem is expanding its community impact in
Barbados . Thirty registered Barbadian nurses will have the opportunity to pursue the Nurse Practitioner program at Chamberlain University following the signing of a Memorandum of Understanding (MOU). The MOU launches the first-ever Nurse Practitioners program inBarbados , which will commence in September. The Pan American Health Organization, regional office of the World Health Organization (PAHO/WHO) and Ross University School of Medicine have forged an alliance to strengthen health systems inBarbados and theEastern Caribbean , enhancing the health workforce’s capacity to handle emergencies, disasters and non-communicable diseases.
Segment Highlights
Chamberlain
$ in millions |
Three Months Ended
|
|
Year Ended
|
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|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
|
|
|
|
|
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Adj. Operating Income |
|
|
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|
|
|
|
|
Adj. EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
Total Students (1) |
36,750 |
|
33,284 |
|
|
|
|
|
|
|
|
-
Total student enrollment increased
10.4% compared with the prior year, driven by continued growth in pre-licensure and post-licensure nursing programs.
Walden
$ in millions |
Three Months Ended June 30, |
|
Year Ended June 30, |
|||||||||
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
Adj. Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
Adj. EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
Total Students (1) |
41,845 |
|
37,582 |
|
|
|
|
|
|
|
|
-
Total student enrollment increased
11.3% compared with prior year, driven by growth in healthcare and non-healthcare programs.
Medical and Veterinary
$ in millions |
Three Months Ended June 30, |
|
Year Ended June 30, |
|||||||||
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
Adj. Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
Adj. EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
Total Students (1) |
4,726 |
|
4,869 |
|
(2.9)% |
|
|
|
|
|
|
-
Total student enrollment decreased
2.9% compared with the prior year, driven by declines at medical.
Fiscal Year 2025 Outlook
Adtalem initiates guidance for fiscal year 2025, revenue in the range of
Conference Call and Webcast Information
Adtalem will hold a conference call to discuss its fiscal 2024 fourth quarter and fiscal year results today at 4:30 p.m. CT (5:30 p.m. ET).
The call can be accessed by dialing +1 877-407-6184 (
Adtalem will archive a replay of the call for 30 days. To access the replay, dial +1 877-660-6853 (
About Adtalem Global Education
Adtalem Global Education is the leading provider of healthcare education in the
Cautionary Disclosure Regarding Forward-Looking Statements
Certain statements contained in this release are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact, which includes statements regarding Adtalem’s future growth. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “future,” “believe,” “expect,” “anticipate,” “estimate,” “plan,” “intend,” “may,” “will,” “would,” “could,” “can,” “continue,” “preliminary,” “range,” and similar terms. These forward-looking statements are subject to risk and uncertainties that could cause actual results to differ materially from those described in the statements. These risks and uncertainties include the risk factors described in Item 1A. “Risk Factors” of our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) and our other filings with the SEC. These forward-looking statements are based on information available to us as of the date any such statements are made, and Adtalem assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized, except as required by law.
A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of special items that may be incurred in the future, although these special items could be material to Adtalem's results in accordance with GAAP.
1 Represents total students attending sessions during each institution’s most recent enrollment period in Q4 FY 2024 and Q4 FY 2023.
Adtalem Global Education Inc. Consolidated Balance Sheets (unaudited) (in thousands, except per share data) |
||||||||
|
|
|
|
|
||||
|
|
June 30, |
||||||
|
|
2024 |
|
2023 |
||||
Assets: |
|
|
||||||
Current assets: |
|
|
||||||
Cash and cash equivalents |
$ |
219,306 |
|
$ |
272,194 |
|
||
Restricted cash |
|
1,896 |
|
|
2,881 |
|
||
Accounts and financing receivables, net |
|
126,833 |
|
|
102,749 |
|
||
Prepaid expenses and other current assets |
|
70,050 |
|
|
102,473 |
|
||
Total current assets |
|
418,085 |
|
|
480,297 |
|
||
Noncurrent assets: |
|
|
||||||
Property and equipment, net |
|
248,524 |
|
|
244,649 |
|
||
Operating lease assets |
|
176,755 |
|
|
174,677 |
|
||
Deferred income taxes |
|
49,088 |
|
|
56,694 |
|
||
Intangible assets, net |
|
776,694 |
|
|
812,338 |
|
||
Goodwill |
|
961,262 |
|
|
961,262 |
|
||
Other assets, net |
|
103,184 |
|
|
80,624 |
|
||
Assets held for sale |
|
7,825 |
|
|
— |
|
||
Total noncurrent assets |
|
2,323,332 |
|
|
2,330,244 |
|
||
Total assets |
$ |
2,741,417 |
|
$ |
2,810,541 |
|
||
|
|
|
||||||
Liabilities and shareholders' equity: |
|
|
||||||
Current liabilities: |
|
|
||||||
Accounts payable |
$ |
102,626 |
|
$ |
81,812 |
|
||
Accrued payroll and benefits |
|
71,373 |
|
|
52,041 |
|
||
Accrued liabilities |
|
96,957 |
|
|
105,806 |
|
||
Deferred revenue |
|
185,272 |
|
|
153,871 |
|
||
Current operating lease liabilities |
|
31,429 |
|
|
37,673 |
|
||
Total current liabilities |
|
487,657 |
|
|
431,203 |
|
||
Noncurrent liabilities: |
|
|
||||||
Long-term debt |
|
648,712 |
|
|
695,077 |
|
||
Long-term operating lease liabilities |
|
167,712 |
|
|
163,441 |
|
||
Deferred income taxes |
|
29,526 |
|
|
26,068 |
|
||
Other liabilities |
|
38,675 |
|
|
37,416 |
|
||
Total noncurrent liabilities |
|
884,625 |
|
|
922,002 |
|
||
Total liabilities |
|
1,372,282 |
|
|
1,353,205 |
|
||
Commitments and contingencies |
|
|
||||||
Total shareholders' equity |
|
1,369,135 |
|
|
1,457,336 |
|
||
Total liabilities and shareholders' equity |
$ |
2,741,417 |
|
$ |
2,810,541 |
|
Adtalem Global Education Inc. Consolidated Statements of Income (unaudited) (in thousands, except per share data) |
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|
|
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Three Months Ended |
|
Year Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenue |
$ |
409,907 |
|
$ |
364,641 |
|
$ |
1,584,652 |
|
$ |
1,450,826 |
|
||||
Operating cost and expense: |
|
|
|
|
||||||||||||
Cost of educational services |
|
182,540 |
|
|
163,718 |
|
|
698,548 |
|
|
648,486 |
|
||||
Student services and administrative expense |
|
154,597 |
|
|
153,296 |
|
|
632,965 |
|
|
586,009 |
|
||||
Restructuring expense |
|
653 |
|
|
1,111 |
|
|
1,870 |
|
|
18,817 |
|
||||
Business acquisition and integration expense |
|
3,594 |
|
|
6,959 |
|
|
34,215 |
|
|
42,661 |
|
||||
Gain on sale of assets |
|
— |
|
|
— |
|
|
— |
|
|
(13,317 |
) |
||||
Total operating cost and expense |
|
341,384 |
|
|
325,084 |
|
|
1,367,598 |
|
|
1,282,656 |
|
||||
Operating income |
|
68,523 |
|
|
39,557 |
|
|
217,054 |
|
|
168,170 |
|
||||
Interest expense |
|
(14,749 |
) |
|
(15,294 |
) |
|
(63,659 |
) |
|
(63,100 |
) |
||||
Other income, net |
|
1,894 |
|
|
3,664 |
|
|
10,542 |
|
|
6,965 |
|
||||
Income from continuing operations before income taxes |
|
55,668 |
|
|
27,927 |
|
|
163,937 |
|
|
112,035 |
|
||||
Provision for income taxes |
|
(5,068 |
) |
|
(4,377 |
) |
|
(26,224 |
) |
|
(10,283 |
) |
||||
Income from continuing operations |
|
50,600 |
|
|
23,550 |
|
|
137,713 |
|
|
101,752 |
|
||||
Discontinued operations: |
|
|
|
|
||||||||||||
Loss from discontinued operations before income taxes |
|
(1,091 |
) |
|
(1,730 |
) |
|
(762 |
) |
|
(8,464 |
) |
||||
Loss on disposal of discontinued operations before income taxes |
|
— |
|
|
— |
|
|
— |
|
|
(3,576 |
) |
||||
(Provision for) benefit from income taxes |
|
(90 |
) |
|
424 |
|
|
(174 |
) |
|
3,646 |
|
||||
Loss from discontinued operations |
|
(1,181 |
) |
|
(1,306 |
) |
|
(936 |
) |
|
(8,394 |
) |
||||
Net income |
$ |
49,419 |
|
$ |
22,244 |
|
$ |
136,777 |
|
$ |
93,358 |
|
||||
|
|
|
|
|
||||||||||||
Earnings (loss) per share: |
|
|
|
|
||||||||||||
Basic: |
|
|
|
|
||||||||||||
Continuing operations |
$ |
1.34 |
|
$ |
0.54 |
|
$ |
3.49 |
|
$ |
2.27 |
|
||||
Discontinued operations |
$ |
(0.03 |
) |
$ |
(0.03 |
) |
$ |
(0.02 |
) |
$ |
(0.19 |
) |
||||
Total basic earnings per share |
$ |
1.31 |
|
$ |
0.51 |
|
$ |
3.47 |
|
$ |
2.08 |
|
||||
Diluted: |
|
|
|
|
||||||||||||
Continuing operations |
$ |
1.31 |
|
$ |
0.53 |
|
$ |
3.42 |
|
$ |
2.23 |
|
||||
Discontinued operations |
$ |
(0.03 |
) |
$ |
(0.03 |
) |
$ |
(0.02 |
) |
$ |
(0.18 |
) |
||||
Total diluted earnings per share |
$ |
1.28 |
|
$ |
0.50 |
|
$ |
3.39 |
|
$ |
2.05 |
|
||||
|
|
|
|
|
||||||||||||
Weighted-average shares outstanding: |
|
|
|
|
||||||||||||
Basic shares |
|
37,642 |
|
|
43,292 |
|
|
39,413 |
|
|
44,781 |
|
||||
Diluted shares |
|
38,595 |
|
|
44,129 |
|
|
40,307 |
|
|
45,600 |
|
Adtalem Global Education Inc. Consolidated Statements of Cash Flows (unaudited) (in thousands) |
||||||||
|
|
|
|
|
||||
|
|
Year Ended June 30, |
||||||
|
|
2024 |
|
2023 |
||||
Operating activities: |
|
|
|
|
||||
Net income |
|
$ |
136,777 |
|
|
$ |
93,358 |
|
Loss from discontinued operations |
|
|
936 |
|
|
|
8,394 |
|
Income from continuing operations |
|
|
137,713 |
|
|
|
101,752 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Stock-based compensation |
|
|
25,947 |
|
|
|
14,299 |
|
Amortization and impairments to operating lease assets |
|
|
32,641 |
|
|
|
48,470 |
|
Depreciation |
|
|
39,676 |
|
|
|
41,376 |
|
Amortization of acquired intangible assets |
|
|
35,644 |
|
|
|
61,239 |
|
Amortization and write-off of debt discount and issuance costs |
|
|
5,663 |
|
|
|
9,129 |
|
Provision for bad debts |
|
|
53,175 |
|
|
|
32,999 |
|
Deferred income taxes |
|
|
11,073 |
|
|
|
(5,087 |
) |
Loss on disposals, accelerated depreciation, and impairments to property and equipment |
|
|
466 |
|
|
|
3,999 |
|
Gain on extinguishment of debt |
|
|
— |
|
|
|
(71 |
) |
(Gain) loss on investments |
|
|
(1,365 |
) |
|
|
3,689 |
|
Gain on sale of assets |
|
|
— |
|
|
|
(13,317 |
) |
Unrealized loss on assets held for sale |
|
|
647 |
|
|
|
— |
|
Changes in assets and liabilities: |
|
|
|
|
||||
Accounts and financing receivables |
|
|
(76,355 |
) |
|
|
(56,309 |
) |
Prepaid expenses and other current assets |
|
|
(8,781 |
) |
|
|
9,324 |
|
Cloud computing implementation assets |
|
|
(27,154 |
) |
|
|
(13,873 |
) |
Accounts payable |
|
|
18,330 |
|
|
|
24,744 |
|
Accrued payroll and benefits |
|
|
19,422 |
|
|
|
(15,683 |
) |
Accrued liabilities |
|
|
27,422 |
|
|
|
241 |
|
Deferred revenue |
|
|
40,622 |
|
|
|
5,807 |
|
Operating lease liabilities |
|
|
(36,692 |
) |
|
|
(59,188 |
) |
Other assets and liabilities |
|
|
(9,727 |
) |
|
|
1,150 |
|
Net cash provided by operating activities-continuing operations |
|
|
288,367 |
|
|
|
194,690 |
|
Net cash provided by (used in) operating activities-discontinued operations |
|
|
7,408 |
|
|
|
(2,776 |
) |
Net cash provided by operating activities |
|
|
295,775 |
|
|
|
191,914 |
|
Investing activities: |
|
|
|
|
||||
Capital expenditures |
|
|
(48,893 |
) |
|
|
(26,014 |
) |
Proceeds from sales of marketable securities |
|
|
1,732 |
|
|
|
7,635 |
|
Purchases of marketable securities |
|
|
(689 |
) |
|
|
(1,508 |
) |
Proceeds from note receivable related to property sold |
|
|
— |
|
|
|
46,800 |
|
Net cash (used in) provided by investing activities-continuing operations |
|
|
(47,850 |
) |
|
|
26,913 |
|
Payment for working capital adjustment for sale of business |
|
|
— |
|
|
|
(3,174 |
) |
Net cash (used in) provided by investing activities |
|
|
(47,850 |
) |
|
|
23,739 |
|
Financing activities: |
|
|
|
|
||||
Proceeds from exercise of stock options |
|
|
17,089 |
|
|
|
2,625 |
|
Employee taxes paid on withholding shares |
|
|
(7,731 |
) |
|
|
(4,592 |
) |
Proceeds from stock issued under Colleague Stock Purchase Plan |
|
|
810 |
|
|
|
608 |
|
Repurchases of common stock for treasury |
|
|
(261,966 |
) |
|
|
(123,133 |
) |
Payment on equity forward contract |
|
|
— |
|
|
|
(13,162 |
) |
Proceeds from issuance of long-term debt |
|
|
1,896 |
|
|
|
— |
|
Repayments of long-term debt |
|
|
(51,896 |
) |
|
|
(150,861 |
) |
Net cash used in financing activities |
|
|
(301,798 |
) |
|
|
(288,515 |
) |
Net decrease in cash, cash equivalents and restricted cash |
|
|
(53,873 |
) |
|
|
(72,862 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
|
275,075 |
|
|
|
347,937 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
221,202 |
|
|
$ |
275,075 |
Adtalem Global Education Inc. Segment Information (unaudited) (in thousands) |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||||||||||||||||
|
|
|
|
|
|
Increase/(Decrease) |
|
|
|
|
|
Increase/(Decrease) |
||||||||||||||||||
|
|
2024 |
|
2023 |
|
$ |
|
% |
|
2024 |
|
2023 |
|
$ |
|
% |
||||||||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Chamberlain |
|
$ |
167,035 |
|
|
$ |
144,496 |
|
|
$ |
22,539 |
|
15.6 |
% |
|
$ |
633,522 |
|
|
$ |
571,034 |
|
|
$ |
62,488 |
|
|
10.9 |
% |
|
Walden |
|
|
156,309 |
|
|
|
138,010 |
|
|
|
18,299 |
|
|
13.3 |
% |
|
|
595,332 |
|
|
|
533,725 |
|
|
|
61,607 |
|
|
11.5 |
% |
Medical and Veterinary |
|
|
86,563 |
|
|
|
82,135 |
|
|
|
4,428 |
|
|
5.4 |
% |
|
|
355,798 |
|
|
|
346,067 |
|
|
|
9,731 |
|
|
2.8 |
% |
Total consolidated revenue |
|
$ |
409,907 |
|
|
$ |
364,641 |
|
|
$ |
45,266 |
|
|
12.4 |
% |
|
$ |
1,584,652 |
|
|
$ |
1,450,826 |
|
|
$ |
133,826 |
|
|
9.2 |
% |
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Chamberlain |
|
$ |
40,487 |
|
|
$ |
35,683 |
|
|
$ |
4,804 |
|
|
13.5 |
% |
|
$ |
137,800 |
|
|
$ |
134,685 |
|
|
$ |
3,115 |
|
|
2.3 |
% |
Walden |
|
|
30,058 |
|
|
|
9,809 |
|
|
|
20,249 |
|
|
206.4 |
% |
|
|
77,179 |
|
|
|
35,880 |
|
|
|
41,299 |
|
|
115.1 |
% |
Medical and Veterinary |
|
|
11,923 |
|
|
|
10,477 |
|
|
|
1,446 |
|
|
13.8 |
% |
|
|
71,065 |
|
|
|
59,649 |
|
|
|
11,416 |
|
|
19.1 |
% |
Home Office |
|
|
(13,945 |
) |
|
|
(16,412 |
) |
|
|
2,467 |
|
|
15.0 |
% |
|
|
(68,990 |
) |
|
|
(62,044 |
) |
|
|
(6,946 |
) |
|
(11.2 |
)% |
Total consolidated operating income |
|
$ |
68,523 |
|
|
$ |
39,557 |
|
|
$ |
28,966 |
|
|
73.2 |
% |
|
$ |
217,054 |
|
|
$ |
168,170 |
|
|
$ |
48,884 |
|
|
29.1 |
% |
Non-GAAP Financial Measures and Reconciliations
We believe that certain non-GAAP financial measures provide investors with useful supplemental information regarding the underlying business trends and performance of Adtalem’s ongoing operations as seen through the eyes of management and are useful for period-over-period comparisons. We use these supplemental non-GAAP financial measures internally in our assessment of performance and budgeting process. However, these non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The following are non-GAAP financial measures used in the subsequent GAAP to non-GAAP reconciliation tables:
Adjusted net income (most comparable GAAP measure: net income) – Measure of Adtalem’s net income adjusted for restructuring expense, business acquisition and integration expense, amortization of acquired intangible assets, gain on sale of assets, write-off of debt discount and issuance costs, gain on extinguishment of debt, litigation reserve, investment impairment, loss on assets held for sale, debt modification costs, tax benefit due to change in valuation allowance, tax benefit due to change in unrecognized tax benefits, and loss from discontinued operations.
Adjusted earnings per share (most comparable GAAP measure: diluted earnings per share) – Measure of Adtalem’s diluted earnings per share adjusted for restructuring expense, business acquisition and integration expense, amortization of acquired intangible assets, gain on sale of assets, write-off of debt discount and issuance costs, gain on extinguishment of debt, litigation reserve, investment impairment, loss on assets held for sale, debt modification costs, tax benefit due to change in valuation allowance, tax benefit due to change in unrecognized tax benefits, and loss from discontinued operations.
Adjusted operating income (most comparable GAAP measure: operating income) – Measure of Adtalem’s operating income adjusted for restructuring expense, business acquisition and integration expense, amortization of acquired intangible assets, litigation reserve, loss on assets held for sale, debt modification costs, and gain on sale of assets. This measure is applied on a consolidated and segment basis, depending on the context of the discussion.
Adjusted EBITDA (most comparable GAAP measure: net income) – Measure of Adtalem’s net income adjusted for loss from discontinued operations, interest expense, other income, net, provision for income taxes, depreciation, amortization of acquired intangible assets, amortization of cloud computing implementation assets, stock-based compensation, restructuring expense, business acquisition and integration expense, litigation reserve, loss on assets held for sale, debt modification costs, and gain on sale of assets. This measure is applied on a consolidated and segment basis, depending on the context of the discussion. Provision for income taxes, interest expense, and other income, net is not recorded at the reportable segments, and therefore, the segment adjusted EBITDA reconciliations begin with operating income.
Free cash flow (most comparable GAAP measure: net cash provided by operating activities-continuing operations) – Defined as net cash provided by operating activities-continuing operations less capital expenditures.
Net debt – Defined as long-term debt less cash and cash equivalents.
Net leverage – Defined as net debt divided by adjusted EBITDA.
A description of special items in our non-GAAP financial measures described above are as follows:
- Restructuring expense primarily related to real estate consolidations at Walden, Medical and Veterinary, and Adtalem’s home office. We do not include normal, recurring, cash operating expenses in our restructuring expense.
- Business acquisition and integration expense include expenses related to the Walden acquisition and certain costs related to growth transformation initiatives. We do not include normal, recurring, cash operating expenses in our business acquisition and integration expense.
- Amortization of acquired intangible assets.
- Amortization of cloud computing implementation assets.
-
Gain on sale of Adtalem’s
Chicago, Illinois , campus facility. - Write-off of debt discount and issuance costs and gain on extinguishment of debt related to prepayments of debt, reserves related to significant litigation, impairment of an equity investment, loss on assets held for sale related to a fair value write-down on assets, and debt modification costs related to refinancing our Term Loan B loan.
- Tax benefit due to change in valuation allowance.
- Tax benefit due to change in unrecognized tax benefits.
- Loss from discontinued operations includes expense from ongoing litigation costs and settlements related to the DeVry University and Carrington College divestitures, a loss on sale of ACAMS, Becker, and OCL for working capital adjustments to the initial sales prices and a tax return to provision adjustment, and the earn-outs we received.
Adtalem Global Education Inc. Non-GAAP Operating Income by Segment (unaudited) (in thousands) |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||||||||||||||||
|
|
|
|
|
|
Increase/(Decrease) |
|
|
|
|
|
Increase/(Decrease) |
||||||||||||||||||
|
|
2024 |
|
2023 |
|
$ |
|
% |
|
2024 |
|
2023 |
|
$ |
|
% |
||||||||||||||
Chamberlain: |
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Operating income (GAAP) |
$ |
40,487 |
|
$ |
35,683 |
|
$ |
4,804 |
|
13.5 |
% |
$ |
137,800 |
|
$ |
134,685 |
|
$ |
3,115 |
|
2.3 |
% |
||||||||
Restructuring expense |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
818 |
|
|
(818 |
) |
|
||||||||||
Adjusted operating income (non-GAAP) |
$ |
40,487 |
|
$ |
35,683 |
|
$ |
4,804 |
|
13.5 |
% |
$ |
137,800 |
|
$ |
135,503 |
|
$ |
2,297 |
|
1.7 |
% |
||||||||
Operating margin (GAAP) |
|
24.2 |
% |
|
24.7 |
% |
|
|
|
21.8 |
% |
|
23.6 |
% |
|
|
||||||||||||||
Operating margin (non-GAAP) |
|
24.2 |
% |
|
24.7 |
% |
|
|
|
21.8 |
% |
|
23.7 |
% |
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Walden: |
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Operating income (GAAP) |
$ |
30,058 |
|
$ |
9,809 |
|
$ |
20,249 |
|
206.4 |
% |
$ |
77,179 |
|
$ |
35,880 |
|
$ |
41,299 |
|
115.1 |
% |
||||||||
Restructuring expense |
|
— |
|
|
71 |
|
|
(71 |
) |
|
|
(776 |
) |
|
3,245 |
|
|
(4,021 |
) |
|
||||||||||
Amortization of acquired intangible assets |
|
7,348 |
|
|
12,303 |
|
|
(4,955 |
) |
|
|
35,644 |
|
|
61,239 |
|
|
(25,595 |
) |
|
||||||||||
Litigation reserve |
|
— |
|
|
10,000 |
|
|
(10,000 |
) |
|
|
18,500 |
|
|
10,000 |
|
|
8,500 |
|
|
||||||||||
Adjusted operating income (non-GAAP) |
$ |
37,406 |
|
$ |
32,183 |
|
$ |
5,223 |
|
16.2 |
% |
$ |
130,547 |
|
$ |
110,364 |
|
$ |
20,183 |
|
18.3 |
% |
||||||||
Operating margin (GAAP) |
|
19.2 |
% |
|
7.1 |
% |
|
|
|
13.0 |
% |
|
6.7 |
% |
|
|
||||||||||||||
Operating margin (non-GAAP) |
|
23.9 |
% |
|
23.3 |
% |
|
|
|
21.9 |
% |
|
20.7 |
% |
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Medical and Veterinary: |
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Operating income (GAAP) |
$ |
11,923 |
|
$ |
10,477 |
|
$ |
1,446 |
|
13.8 |
% |
$ |
71,065 |
|
$ |
59,649 |
|
$ |
11,416 |
|
19.1 |
% |
||||||||
Restructuring expense |
|
63 |
|
|
353 |
|
|
(290 |
) |
|
|
442 |
|
|
7,687 |
|
|
(7,245 |
) |
|
||||||||||
Adjusted operating income (non-GAAP) |
$ |
11,986 |
|
$ |
10,830 |
|
$ |
1,156 |
|
10.7 |
% |
$ |
71,507 |
|
$ |
67,336 |
|
$ |
4,171 |
|
6.2 |
% |
||||||||
Operating margin (GAAP) |
|
13.8 |
% |
|
12.8 |
% |
|
|
|
20.0 |
% |
|
17.2 |
% |
|
|
||||||||||||||
Operating margin (non-GAAP) |
|
13.8 |
% |
|
13.2 |
% |
|
|
|
20.1 |
% |
|
19.5 |
% |
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Home Office: |
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Operating loss (GAAP) |
$ |
(13,945 |
) |
$ |
(16,412 |
) |
$ |
2,467 |
|
15.0 |
% |
$ |
(68,990 |
) |
$ |
(62,044 |
) |
$ |
(6,946 |
) |
(11.2 |
)% |
||||||||
Restructuring expense |
|
590 |
|
|
687 |
|
|
(97 |
) |
|
|
2,204 |
|
|
7,067 |
|
|
(4,863 |
) |
|
||||||||||
Business acquisition and integration expense |
|
3,594 |
|
|
6,959 |
|
|
(3,365 |
) |
|
|
34,215 |
|
|
42,661 |
|
|
(8,446 |
) |
|
||||||||||
Loss on assets held for sale |
|
— |
|
|
— |
|
|
— |
|
|
|
647 |
|
|
— |
|
|
647 |
|
|
||||||||||
Debt modification costs |
|
— |
|
|
— |
|
|
— |
|
|
|
848 |
|
|
— |
|
|
848 |
|
|
||||||||||
Gain on sale of assets |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(13,317 |
) |
|
13,317 |
|
|
||||||||||
Adjusted operating loss (non-GAAP) |
$ |
(9,761 |
) |
$ |
(8,766 |
) |
$ |
(995 |
) |
(11.4 |
)% |
$ |
(31,076 |
) |
$ |
(25,633 |
) |
$ |
(5,443 |
) |
(21.2 |
)% |
||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Adtalem Global Education: |
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Operating income (GAAP) |
$ |
68,523 |
|
$ |
39,557 |
|
$ |
28,966 |
|
73.2 |
% |
$ |
217,054 |
|
$ |
168,170 |
|
$ |
48,884 |
|
29.1 |
% |
||||||||
Restructuring expense |
|
653 |
|
|
1,111 |
|
|
(458 |
) |
|
|
1,870 |
|
|
18,817 |
|
|
(16,947 |
) |
|
||||||||||
Business acquisition and integration expense |
|
3,594 |
|
|
6,959 |
|
|
(3,365 |
) |
|
|
34,215 |
|
|
42,661 |
|
|
(8,446 |
) |
|
||||||||||
Amortization of acquired intangible assets |
|
7,348 |
|
|
12,303 |
|
|
(4,955 |
) |
|
|
35,644 |
|
|
61,239 |
|
|
(25,595 |
) |
|
||||||||||
Litigation reserve |
|
— |
|
|
10,000 |
|
|
(10,000 |
) |
|
|
18,500 |
|
|
10,000 |
|
|
8,500 |
|
|
||||||||||
Loss on assets held for sale |
|
— |
|
|
— |
|
|
— |
|
|
|
647 |
|
|
— |
|
|
647 |
|
|
||||||||||
Debt modification costs |
|
— |
|
|
— |
|
|
— |
|
|
|
848 |
|
|
— |
|
|
848 |
|
|
||||||||||
Gain on sale of assets |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(13,317 |
) |
|
13,317 |
|
|
||||||||||
Adjusted operating income (non-GAAP) |
$ |
80,118 |
|
$ |
69,930 |
|
$ |
10,188 |
|
14.6 |
% |
$ |
308,778 |
|
$ |
287,570 |
|
$ |
21,208 |
|
7.4 |
% |
||||||||
Operating margin (GAAP) |
|
16.7 |
% |
|
10.8 |
% |
|
|
|
13.7 |
% |
|
11.6 |
% |
|
|
||||||||||||||
Operating margin (non-GAAP) |
|
19.5 |
% |
|
19.2 |
% |
|
|
|
19.5 |
% |
|
19.8 |
% |
|
|
Adtalem Global Education Inc. Non-GAAP Adjusted EBITDA by Segment (unaudited) (in thousands) |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||||||||||||||||
|
|
|
|
|
|
Increase/(Decrease) |
|
|
|
|
|
Increase/(Decrease) |
||||||||||||||||||
|
|
2024 |
|
2023 |
|
$ |
|
% |
|
2024 |
|
2023 |
|
$ |
|
% |
||||||||||||||
Chamberlain: |
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Operating income (GAAP) |
$ |
40,487 |
|
$ |
35,683 |
|
$ |
4,804 |
|
13.5 |
% |
$ |
137,800 |
|
$ |
134,685 |
|
$ |
3,115 |
|
2.3 |
% |
||||||||
Restructuring expense |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
818 |
|
|
(818 |
) |
|
||||||||||
Depreciation |
|
4,912 |
|
|
4,240 |
|
|
672 |
|
|
|
18,752 |
|
|
17,175 |
|
|
1,577 |
|
|
||||||||||
Amortization of cloud computing implementation assets |
|
382 |
|
|
39 |
|
|
343 |
|
|
|
1,332 |
|
|
89 |
|
|
1,243 |
|
|
||||||||||
Stock-based compensation |
|
1,512 |
|
|
1,118 |
|
|
394 |
|
|
|
8,303 |
|
|
4,719 |
|
|
3,584 |
|
|
||||||||||
Adjusted EBITDA (non-GAAP) |
$ |
47,293 |
|
$ |
41,080 |
|
$ |
6,213 |
|
15.1 |
% |
$ |
166,187 |
|
$ |
157,486 |
|
$ |
8,701 |
|
5.5 |
% |
||||||||
Adjusted EBITDA margin (non-GAAP) |
|
28.3 |
% |
|
28.4 |
% |
|
|
|
26.2 |
% |
|
27.6 |
% |
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Walden: |
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Operating income (GAAP) |
$ |
30,058 |
|
$ |
9,809 |
|
$ |
20,249 |
|
206.4 |
% |
$ |
77,179 |
|
$ |
35,880 |
|
$ |
41,299 |
|
115.1 |
% |
||||||||
Restructuring expense |
|
— |
|
|
71 |
|
|
(71 |
) |
|
|
(776 |
) |
|
3,245 |
|
|
(4,021 |
) |
|
||||||||||
Amortization of acquired intangible assets |
|
7,348 |
|
|
12,303 |
|
|
(4,955 |
) |
|
|
35,644 |
|
|
61,239 |
|
|
(25,595 |
) |
|
||||||||||
Litigation reserve |
|
— |
|
|
10,000 |
|
|
(10,000 |
) |
|
|
18,500 |
|
|
10,000 |
|
|
8,500 |
|
|
||||||||||
Depreciation |
|
1,654 |
|
|
2,157 |
|
|
(503 |
) |
|
|
7,389 |
|
|
9,419 |
|
|
(2,030 |
) |
|
||||||||||
Amortization of cloud computing implementation assets |
|
385 |
|
|
32 |
|
|
353 |
|
|
|
1,331 |
|
|
73 |
|
|
1,258 |
|
|
||||||||||
Stock-based compensation |
|
1,703 |
|
|
916 |
|
|
787 |
|
|
|
7,525 |
|
|
3,861 |
|
|
3,664 |
|
|
||||||||||
Adjusted EBITDA (non-GAAP) |
$ |
41,148 |
|
$ |
35,288 |
|
$ |
5,860 |
|
16.6 |
% |
$ |
146,792 |
|
$ |
123,717 |
|
$ |
23,075 |
|
18.7 |
% |
||||||||
Adjusted EBITDA margin (non-GAAP) |
|
26.3 |
% |
|
25.6 |
% |
|
|
|
24.7 |
% |
|
23.2 |
% |
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Medical and Veterinary: |
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Operating income (GAAP) |
$ |
11,923 |
|
$ |
10,477 |
|
$ |
1,446 |
|
13.8 |
% |
$ |
71,065 |
|
$ |
59,649 |
|
$ |
11,416 |
|
19.1 |
% |
||||||||
Restructuring expense |
|
63 |
|
|
353 |
|
|
(290 |
) |
|
|
442 |
|
|
7,687 |
|
|
(7,245 |
) |
|
||||||||||
Depreciation |
|
3,086 |
|
|
3,092 |
|
|
(6 |
) |
|
|
11,983 |
|
|
12,438 |
|
|
(455 |
) |
|
||||||||||
Amortization of cloud computing implementation assets |
|
138 |
|
|
16 |
|
|
122 |
|
|
|
469 |
|
|
37 |
|
|
432 |
|
|
||||||||||
Stock-based compensation |
|
1,243 |
|
|
712 |
|
|
531 |
|
|
|
4,930 |
|
|
3,003 |
|
|
1,927 |
|
|
||||||||||
Adjusted EBITDA (non-GAAP) |
$ |
16,453 |
|
$ |
14,650 |
|
$ |
1,803 |
|
12.3 |
% |
$ |
88,889 |
|
$ |
82,814 |
|
$ |
6,075 |
|
7.3 |
% |
||||||||
Adjusted EBITDA margin (non-GAAP) |
|
19.0 |
% |
|
17.8 |
% |
|
|
|
25.0 |
% |
|
23.9 |
% |
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Home Office: |
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Operating loss (GAAP) |
$ |
(13,945 |
) |
$ |
(16,412 |
) |
$ |
2,467 |
|
15.0 |
% |
$ |
(68,990 |
) |
$ |
(62,044 |
) |
$ |
(6,946 |
) |
(11.2 |
)% |
||||||||
Restructuring expense |
|
590 |
|
|
687 |
|
|
(97 |
) |
|
|
2,204 |
|
|
7,067 |
|
|
(4,863 |
) |
|
||||||||||
Business acquisition and integration expense |
|
3,594 |
|
|
6,959 |
|
|
(3,365 |
) |
|
|
34,215 |
|
|
42,661 |
|
|
(8,446 |
) |
|
||||||||||
Loss on assets held for sale |
|
— |
|
|
— |
|
|
— |
|
|
|
647 |
|
|
— |
|
|
647 |
|
|
||||||||||
Debt modification costs |
|
— |
|
|
— |
|
|
— |
|
|
|
848 |
|
|
— |
|
|
848 |
|
|
||||||||||
Gain on sale of assets |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(13,317 |
) |
|
13,317 |
|
|
||||||||||
Depreciation |
|
145 |
|
|
381 |
|
|
(236 |
) |
|
|
1,552 |
|
|
2,344 |
|
|
(792 |
) |
|
||||||||||
Stock-based compensation |
|
2,084 |
|
|
645 |
|
|
1,439 |
|
|
|
5,189 |
|
|
2,716 |
|
|
2,473 |
|
|
||||||||||
Adjusted EBITDA (non-GAAP) |
$ |
(7,532 |
) |
$ |
(7,740 |
) |
$ |
208 |
|
2.7 |
% |
$ |
(24,335 |
) |
$ |
(20,573 |
) |
$ |
(3,762 |
) |
(18.3 |
)% |
||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Adtalem Global Education: |
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Net income (GAAP) |
$ |
49,419 |
|
$ |
22,244 |
|
$ |
27,175 |
|
122.2 |
% |
$ |
136,777 |
|
$ |
93,358 |
|
$ |
43,419 |
|
46.5 |
% |
||||||||
Loss from discontinued operations |
|
1,181 |
|
|
1,306 |
|
|
(125 |
) |
|
|
936 |
|
|
8,394 |
|
|
(7,458 |
) |
|
||||||||||
Interest expense |
|
14,749 |
|
|
15,294 |
|
|
(545 |
) |
|
|
63,659 |
|
|
63,100 |
|
|
559 |
|
|
||||||||||
Other income, net |
|
(1,894 |
) |
|
(3,664 |
) |
|
1,770 |
|
|
|
(10,542 |
) |
|
(6,965 |
) |
|
(3,577 |
) |
|
||||||||||
Provision for income taxes |
|
5,068 |
|
|
4,377 |
|
|
691 |
|
|
|
26,224 |
|
|
10,283 |
|
|
15,941 |
|
|
||||||||||
Operating income (GAAP) |
|
68,523 |
|
|
39,557 |
|
|
28,966 |
|
|
|
217,054 |
|
|
168,170 |
|
|
48,884 |
|
|
||||||||||
Depreciation and amortization |
|
18,050 |
|
|
22,260 |
|
|
(4,210 |
) |
|
|
78,452 |
|
|
102,814 |
|
|
(24,362 |
) |
|
||||||||||
Stock-based compensation |
|
6,542 |
|
|
3,391 |
|
|
3,151 |
|
|
|
25,947 |
|
|
14,299 |
|
|
11,648 |
|
|
||||||||||
Restructuring expense |
|
653 |
|
|
1,111 |
|
|
(458 |
) |
|
|
1,870 |
|
|
18,817 |
|
|
(16,947 |
) |
|
||||||||||
Business acquisition and integration expense |
|
3,594 |
|
|
6,959 |
|
|
(3,365 |
) |
|
|
34,215 |
|
|
42,661 |
|
|
(8,446 |
) |
|
||||||||||
Litigation reserve |
|
— |
|
|
10,000 |
|
|
(10,000 |
) |
|
|
18,500 |
|
|
10,000 |
|
|
8,500 |
|
|
||||||||||
Loss on assets held for sale |
|
— |
|
|
— |
|
|
— |
|
|
|
647 |
|
|
— |
|
|
647 |
|
|
||||||||||
Debt modification costs |
|
— |
|
|
— |
|
|
— |
|
|
|
848 |
|
|
— |
|
|
848 |
|
|
||||||||||
Gain on sale of assets |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(13,317 |
) |
|
13,317 |
|
|
||||||||||
Adjusted EBITDA (non-GAAP) |
$ |
97,362 |
|
$ |
83,278 |
|
$ |
14,084 |
|
16.9 |
% |
$ |
377,533 |
|
$ |
343,444 |
|
$ |
34,089 |
|
9.9 |
% |
||||||||
Adjusted EBITDA margin (non-GAAP) |
|
23.8 |
% |
|
22.8 |
% |
|
|
|
23.8 |
% |
|
23.7 |
% |
|
|
Adtalem Global Education Inc. Non-GAAP Earnings Disclosure (unaudited) (in thousands, except per share data) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income (GAAP) |
|
$ |
49,419 |
|
|
$ |
22,244 |
|
|
$ |
136,777 |
|
|
$ |
93,358 |
|
Restructuring expense |
|
|
653 |
|
|
|
1,111 |
|
|
|
1,870 |
|
|
|
18,817 |
|
Business acquisition and integration expense |
|
|
3,594 |
|
|
|
6,959 |
|
|
|
34,215 |
|
|
|
42,661 |
|
Amortization of acquired intangible assets |
|
|
7,348 |
|
|
|
12,303 |
|
|
|
35,644 |
|
|
|
61,239 |
|
Gain on sale of assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(13,317 |
) |
Write-off of debt discount and issuance costs, gain on extinguishment of debt, litigation reserve, investment impairment, loss on assets held for sale, and debt modification costs |
|
|
— |
|
|
|
10,000 |
|
|
|
21,108 |
|
|
|
19,226 |
|
Tax benefit due to change in valuation allowance |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,184 |
) |
Tax benefit due to change in unrecognized tax benefits |
|
|
(5,657 |
) |
|
|
— |
|
|
|
(5,657 |
) |
|
|
— |
|
Income tax impact on non-GAAP adjustments (1) |
|
|
(3,749 |
) |
|
|
(8,656 |
) |
|
|
(23,104 |
) |
|
|
(31,997 |
) |
Loss from discontinued operations |
|
|
1,181 |
|
|
|
1,306 |
|
|
|
936 |
|
|
|
8,394 |
|
Adjusted net income (non-GAAP) |
|
$ |
52,789 |
|
|
$ |
45,267 |
|
|
$ |
201,789 |
|
|
$ |
192,197 |
|
(1) Represents the income tax impact of non-GAAP continuing operations adjustments that is recognized in our GAAP financial statements. |
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Diluted earnings per share (GAAP) |
|
$ |
1.28 |
|
|
$ |
0.50 |
|
|
$ |
3.39 |
|
|
$ |
2.05 |
|
Effect on diluted earnings per share: |
|
|
|
|
|
|
|
|
||||||||
Restructuring expense |
|
|
0.02 |
|
|
|
0.03 |
|
|
|
0.05 |
|
|
|
0.41 |
|
Business acquisition and integration expense |
|
|
0.09 |
|
|
|
0.16 |
|
|
|
0.85 |
|
|
|
0.94 |
|
Amortization of acquired intangible assets |
|
|
0.19 |
|
|
|
0.28 |
|
|
|
0.88 |
|
|
|
1.34 |
|
Gain on sale of assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.29 |
) |
Write-off of debt discount and issuance costs, gain on extinguishment of debt, litigation reserve, investment impairment, loss on assets held for sale, and debt modification costs |
|
|
— |
|
|
|
0.23 |
|
|
|
0.52 |
|
|
|
0.42 |
|
Tax benefit due to change in valuation allowance |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.14 |
) |
Tax benefit due to change in unrecognized tax benefits |
|
|
(0.15 |
) |
|
|
— |
|
|
|
(0.14 |
) |
|
|
— |
|
Income tax impact on non-GAAP adjustments (1) |
|
|
(0.10 |
) |
|
|
(0.20 |
) |
|
|
(0.57 |
) |
|
|
(0.70 |
) |
Loss from discontinued operations |
|
|
0.03 |
|
|
|
0.03 |
|
|
|
0.02 |
|
|
|
0.18 |
|
Adjusted earnings per share (non-GAAP) |
|
$ |
1.37 |
|
|
$ |
1.03 |
|
|
$ |
5.01 |
|
|
$ |
4.21 |
|
Diluted shares used in non-GAAP EPS calculation |
|
|
38,595 |
|
|
|
44,129 |
|
|
|
40,307 |
|
|
|
45,600 |
|
Note: May not sum due to rounding. |
||||||||||||||||
(1) Represents the income tax impact of non-GAAP continuing operations adjustments that is recognized in our GAAP financial statements. |
Adtalem Global Education Inc. Non-GAAP Free Cash Flow Disclosure (unaudited) (in thousands) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Twelve Months Ended |
||||||||||||||||||
|
|
FY23 |
|
FY24 |
|
FY24 |
|
FY24 |
|
FY24 |
||||||||||
|
|
Q4 |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
||||||||||
Net cash provided by operating activities-continuing operations (GAAP) |
|
$ |
194,690 |
|
|
$ |
189,501 |
|
|
$ |
227,600 |
|
|
$ |
276,843 |
|
|
$ |
288,367 |
|
Capital expenditures |
|
|
(26,014 |
) |
|
|
(31,070 |
) |
|
|
(38,713 |
) |
|
|
(44,137 |
) |
|
|
(48,893 |
) |
Free cash flow (non-GAAP) |
|
$ |
168,676 |
|
|
$ |
158,431 |
|
|
$ |
188,887 |
|
|
$ |
232,706 |
|
|
$ |
239,474 |
|
Adtalem Global Education Inc. Non-GAAP Net Leverage Disclosure (unaudited) (in thousands) |
||||
|
|
|
||
|
|
Year Ended |
||
|
|
June 30, 2024 |
||
Adtalem Global Education: |
|
|
||
Net income (GAAP) |
|
$ |
136,777 |
|
Net loss from discontinued operations |
|
|
936 |
|
Interest expense |
|
|
63,659 |
|
Other income, net |
|
|
(10,542 |
) |
Provision for income taxes |
|
|
26,224 |
|
Depreciation and amortization |
|
|
78,452 |
|
Stock-based compensation |
|
|
25,947 |
|
Restructuring expense |
|
|
1,870 |
|
Business acquisition and integration expense |
|
|
34,215 |
|
Litigation reserve |
|
|
18,500 |
|
Loss on assets held for sale |
|
|
647 |
|
Debt modification costs |
|
|
848 |
|
Adjusted EBITDA (non-GAAP) |
|
$ |
377,533 |
|
|
|
|
||
|
|
June 30, 2024 |
||
Long-term debt |
|
$ |
658,283 |
|
Less: Cash and cash equivalents |
|
|
(219,306 |
) |
Net debt (non-GAAP) |
|
$ |
438,977 |
|
|
|
|
||
Net leverage (non-GAAP) |
|
|
1.2 |
x |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806972548/en/
Investor Contact
Jay Spitzer
Investor.Relations@Adtalem.com
+1 312-906-6600
Media Contact
Britt Mitchell
AdtalemMedia@Adtalem.com
+1 872-270-0301
Source: Adtalem Global Education Inc.
FAQ
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