Adtalem Global Education First Quarter Fiscal Year 2025 Results; Guidance Raised
Adtalem Global Education reported strong Q1 FY2025 results with significant growth across key metrics. Revenue increased 13.2% year-over-year to $417.4 million, while total enrollment grew 11.2% to 90,140 students. Chamberlain University achieved record enrollment with 11.7% growth, and Walden University saw 12.2% enrollment growth. The company reported diluted EPS of $1.18 and adjusted EPS of $1.29, up 38.7% YoY. Based on strong performance, Adtalem raised its FY2025 guidance, projecting revenue of $1,690-$1,730 million and adjusted EPS of $5.75-$5.95.
Adtalem Global Education ha riportato risultati robusti per il primo trimestre dell'anno fiscale 2025, con una crescita significativa in tutti i principali indicatori. I ricavi sono aumentati del 13,2% rispetto all'anno precedente, raggiungendo 417,4 milioni di dollari, mentre l'iscrizione totale è cresciuta dell'11,2%, raggiungendo 90.140 studenti. Chamberlain University ha raggiunto un'iscrizione record con una crescita del 11,7%, e Walden University ha registrato una crescita del 12,2% nelle iscrizioni. L'azienda ha riportato un utile per azione diluito di 1,18 dollari e un utile per azione rettificato di 1,29 dollari, in aumento del 38,7% su base annua. Sulla base delle solide performance, Adtalem ha rivisto al rialzo le sue previsioni per l'anno fiscale 2025, prevedendo ricavi tra 1.690 e 1.730 milioni di dollari e un utile per azione rettificato tra 5,75 e 5,95 dollari.
Adtalem Global Education reportó resultados sólidos para el primer trimestre del año fiscal 2025, con un crecimiento significativo en los principales indicadores. Los ingresos aumentaron un 13,2% interanual, alcanzando 417,4 millones de dólares, mientras que la matrícula total creció un 11,2%, alcanzando los 90,140 estudiantes. Chamberlain University logró una matrícula récord con un crecimiento del 11,7%, y Walden University vio un crecimiento del 12,2% en la matrícula. La compañía reportó un EPS diluido de 1,18 dólares y un EPS ajustado de 1,29 dólares, un aumento del 38,7% respecto al año anterior. Basándose en un rendimiento sólido, Adtalem aumentó su guía para el año fiscal 2025, proyectando ingresos de entre 1,690 y 1,730 millones de dólares y un EPS ajustado de entre 5,75 y 5,95 dólares.
Adtalem Global Education는 2025 회계연도 1분기 강력한 실적을 보고하며 주요 지표에서 상당한 성장을 보였습니다. 매출은 전년 대비 13.2% 증가하여 4억 1,740만 달러에 달하며, 총 등록자는 11.2% 증가하여 90,140명이 되었습니다. Chamberlain University는 11.7%의 성장률로 기록적인 등록자를 달성하였고, Walden University는 12.2%의 등록 성장률을 기록하였습니다. 회사는 희석 주당순이익(EPS)이 1.18달러, 조정 주당순이익(EPS)이 1.29달러로, 전년 대비 38.7% 증가했다고 보고했습니다. 강력한 실적을 바탕으로, Adtalem은 2025 회계연도 가이드를 상향 조정하였으며, 매출을 16억 9천만~17억 3천만 달러, 조정 주당순이익을 5.75~5.95달러로 예상하고 있습니다.
Adtalem Global Education a rapporté de solides résultats pour le premier trimestre de l'exercice 2025, avec une croissance significative dans tous les principaux indicateurs. Les revenus ont augmenté de 13,2% par rapport à l'année précédente, atteignant 417,4 millions de dollars, tandis que l'inscription totale a augmenté de 11,2%, atteignant 90 140 étudiants. Chamberlain University a atteint un taux d'inscription record avec une croissance de 11,7%, et Walden University a enregistré une croissance de 12,2% des inscriptions. L'entreprise a déclaré un BPA dilué de 1,18 USD et un BPA ajusté de 1,29 USD, en hausse de 38,7% d'une année sur l'autre. Sur la base de ces solides performances, Adtalem a relevé ses prévisions pour l'exercice 2025, prévoyant des revenus compris entre 1 690 et 1 730 millions de dollars et un BPA ajusté compris entre 5,75 et 5,95 dollars.
Adtalem Global Education hat starke Ergebnisse für das erste Quartal des Geschäftsjahres 2025 gemeldet, mit einem signifikanten Wachstum in allen wichtigen Kennzahlen. Der Umsatz stieg im Vergleich zum Vorjahr um 13,2% auf 417,4 Millionen Dollar, während die Gesamtimmatrikulation um 11,2% auf 90.140 Studenten wuchs. Die Chamberlain University erzielte mit einem Anstieg von 11,7% eine Rekordimmatrikulation, während Walden University ein Wachstum von 12,2% verzeichnete. Das Unternehmen meldete einen verwässerten Gewinn je Aktie von 1,18 Dollar und einen bereinigten Gewinn je Aktie von 1,29 Dollar, was einem Anstieg von 38,7% im Jahresvergleich entspricht. Auf der Grundlage der starken Leistung erhöhte Adtalem die Prognose für das Geschäftsjahr 2025 und rechnet mit einem Umsatz von 1.690 bis 1.730 Millionen Dollar sowie einem bereinigten Gewinn je Aktie von 5,75 bis 5,95 Dollar.
- Revenue increased 13.2% YoY to $417.4 million
- Total enrollment up 11.2% YoY to 90,140 students
- Adjusted EPS grew 38.7% YoY to $1.29
- Adjusted EBITDA increased 20.1% YoY to $96.7 million
- Net leverage reduced to 1.0x
- Raised FY2025 guidance for revenue and EPS growth
- Medical and Veterinary segment enrollment declined 0.7% YoY
Insights
A stellar quarter for ATGE with significant growth across key metrics. Revenue jumped
Financial health indicators are robust - net leverage at 1.0x shows strong balance sheet management. The successful term loan repricing reducing interest by
Notable is the company's market positioning in healthcare education, with both Chamberlain and Walden showing double-digit enrollment growth. The
The strategic focus on healthcare education is yielding impressive results. Chamberlain University's record enrollment and CCNE's maximum 10-year accreditation renewal validate the institution's quality. The innovative Practice Ready, Specialty Focused™ model and Hippocratic AI partnership position ATGE at the forefront of healthcare education evolution.
Particularly significant is the consistent enrollment growth across institutions - Chamberlain's
Total enrollment up
Revenue up
Diluted earnings per share
First quarter highlights
-
Total student enrollment 90,140, up
11.2% year-over-year -
Revenue
$417.4 million 13.2% year-over-year -
Chamberlain University seventh straight quarter of total enrollment growth, up
11.7% year-over-year, highest total enrollment in university history -
Walden University fifth straight quarter of total enrollment growth, up
12.2% year-over-year - Medical and Veterinary segment fourth straight enrollment period of sequentially improved year-over-year total enrollment trends
-
Strong momentum starting second year of three-year Growth with Purpose strategy, GAAP net income
$46.2 million $96.7 million 20.1% year-over-year
Capital allocation
-
Repurchased
$34 million $178 million $300 million -
Repriced
$253 million - Net leverage 1.0x as of Sept. 30, 2024
Fiscal year 2025 guidance
-
Revenue
$1,690 million $1,730 million -
Adjusted earnings per share
$5.75 $5.95
“We entered year two of our three-year Growth with Purpose strategy with strong momentum, further integrating our tech-enabled platform and expanding our impact through innovative partnerships,” said Steve Beard, president and chief executive officer, Adtalem Global Education. “Our reimagined education model creates a more versatile learning experience that adapts to students' needs, driving
Financial Highlights
Selected financial data for the three months ended Sept. 30, 2024:
-
Revenue of
$417.4 million 13.2% compared with the prior year. -
Operating income of
$70.2 million $28.2 million $75.8 million $63.3 million -
Net income of
$46.2 million $10.6 million $50.5 million $39.4 million -
Diluted earnings per share of
$1.18 $0.25 $1.29 $0.93 -
Adjusted EBITDA of
$96.7 million $80.5 million 23.2% , compared with21.8% in the prior year.
Business Highlights
- Chamberlain University expanded its specialized nursing education Practice Ready. Specialty Focused.™ (PRSF) model through a partnership with the Oncology Nursing Society (ONS), offering an introduction to caring for cancer patients and their families. The ONS offering joins other specializations in the PRSF model, including critical care, emergency nursing, nephrology, home healthcare and perioperative nursing.
- Adtalem announced a partnership with Hippocratic AI to develop a new curriculum focused on training healthcare professionals in the use of AI technologies. The initiative includes the first-ever AI certification, designed for both Chamberlain University and Walden University students, as well as practicing clinicians, focused on essential skills to effectively evaluate, navigate and ethically utilize AI tools in patient care.
- Ross University School of Veterinary Medicine ranked third for most graduates placed into the highly sought after Veterinary Internship and Residency Matching Program™ (VIRMP) for 2024. Our students matched into specialties including anesthesia, large animal surgery, medical oncology, veterinary dermatology and radiology.
- Chamberlain University's Bachelor of Science in Nursing and Master of Science in Nursing degree programs received continuing accreditation by the Commission on Collegiate Nursing Education (CCNE) for the maximum accreditation period of 10 years. Chamberlain's Doctor of Nursing Practice degree program also recently received continuing accreditation by the National League for Nursing Commission for Nursing Education Accreditation (NLN CNEA) for the accreditation period of 10 years.
-
Adtalem recently released its 2024 Sustainability Report, which highlights the Company’s collective efforts to address critical workforce shortages in the
U.S. healthcare system by strengthening pathways to high-quality education and promoting health equity.
Segment Highlights
Chamberlain
$ in millions |
|
Three Months Ended September 30, |
||
|
|
2024 |
2023 |
% Change |
Revenue |
|
|
|
|
Operating Income |
|
|
|
|
Adj. Operating Income |
|
|
|
|
Adj. EBITDA |
|
|
|
|
Total Students (1) |
|
38,987 |
34,889 |
|
-
Total student enrollment increased
11.7% compared with the prior year, driven by continued growth in pre-licensure and post-licensure nursing programs.
Walden
$ in millions |
|
Three Months Ended September 30, |
||
|
|
2024 |
2023 |
% Change |
Revenue |
|
|
|
|
Operating Income |
|
|
|
1, |
Adj. Operating Income |
|
|
|
|
Adj. EBITDA |
|
|
|
|
Total Students (1) |
|
45,979 |
40,975 |
|
-
Total student enrollment increased
12.2% compared with the prior year, driven by growth in healthcare and non-healthcare programs.
Medical and Veterinary
$ in millions |
|
Three Months Ended September 30, |
||
|
|
2024 |
2023 |
% Change |
Revenue |
|
|
|
|
Operating Income |
|
|
|
|
Adj. Operating Income |
|
|
|
|
Adj. EBITDA |
|
|
|
|
Total Students (1) |
|
5,174 |
5,209 |
(0.7)% |
-
Total student enrollment decreased
0.7% compared with the prior year, driven by declines at medical.
Fiscal Year 2025 Outlook
Adtalem raises guidance for fiscal year 2025, with revenue in the range of
Conference Call and Webcast Information
Adtalem will hold a conference call to discuss its first quarter fiscal year 2025 results today at 4:00 p.m. CT (5:00 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 Q1 FY 2025 and Q1 FY 2024.
Adtalem Global Education Inc. Consolidated Balance Sheets (unaudited) (in thousands) |
||||||
|
|
|
|
|
||
|
September 30, |
|
June 30, |
|
||
|
2024 |
|
2024 |
|
||
Assets: |
|
|
|
|
||
Current assets: |
|
|
|
|
||
Cash and cash equivalents |
$ |
264,798 |
|
$ |
219,306 |
|
Restricted cash |
|
2,074 |
|
|
1,896 |
|
Accounts and financing receivables, net |
|
171,509 |
|
|
126,833 |
|
Prepaid expenses and other current assets |
|
78,533 |
|
|
70,050 |
|
Total current assets |
|
516,914 |
|
|
418,085 |
|
Noncurrent assets: |
|
|
|
|
||
Property and equipment, net |
|
244,503 |
|
|
248,524 |
|
Operating lease assets |
|
171,921 |
|
|
176,755 |
|
Deferred income taxes |
|
33,454 |
|
|
49,088 |
|
Intangible assets, net |
|
773,889 |
|
|
776,694 |
|
Goodwill |
|
961,262 |
|
|
961,262 |
|
Other assets, net |
|
107,939 |
|
|
103,184 |
|
Assets held for sale |
|
7,825 |
|
|
7,825 |
|
Total noncurrent assets |
|
2,300,793 |
|
|
2,323,332 |
|
Total assets |
$ |
2,817,707 |
|
$ |
2,741,417 |
|
|
|
|
|
|
||
Liabilities and shareholders' equity: |
|
|
|
|
||
Current liabilities: |
|
|
|
|
||
Accounts payable |
$ |
91,421 |
|
$ |
102,626 |
|
Accrued payroll and benefits |
|
49,839 |
|
|
71,373 |
|
Accrued liabilities |
|
87,212 |
|
|
96,957 |
|
Deferred revenue |
|
290,571 |
|
|
185,272 |
|
Current operating lease liabilities |
|
32,266 |
|
|
31,429 |
|
Total current liabilities |
|
551,309 |
|
|
487,657 |
|
Noncurrent liabilities: |
|
|
|
|
||
Long-term debt |
|
649,318 |
|
|
648,712 |
|
Long-term operating lease liabilities |
|
161,757 |
|
|
167,712 |
|
Deferred income taxes |
|
30,348 |
|
|
29,526 |
|
Other liabilities |
|
35,023 |
|
|
38,675 |
|
Total noncurrent liabilities |
|
876,446 |
|
|
884,625 |
|
Total liabilities |
|
1,427,755 |
|
|
1,372,282 |
|
Commitments and contingencies |
|
|
|
|
||
Total shareholders' equity |
|
1,389,952 |
|
|
1,369,135 |
|
Total liabilities and shareholders' equity |
$ |
2,817,707 |
|
$ |
2,741,417 |
|
|
||||||
Adtalem Global Education Inc. Consolidated Statements of Income (unaudited) (in thousands, except per share data) |
||||||||
|
|
|
|
|
||||
|
Three Months Ended |
|
||||||
|
September 30, |
|
||||||
|
|
2024 |
|
|
|
2023 |
|
|
Revenue |
$ |
417,400 |
|
|
$ |
368,845 |
|
|
Operating cost and expense: |
|
|
|
|
||||
Cost of educational services |
|
185,995 |
|
|
|
168,618 |
|
|
Student services and administrative expense |
|
159,073 |
|
|
|
166,095 |
|
|
Restructuring expense |
|
2,094 |
|
|
|
676 |
|
|
Business integration expense |
|
— |
|
|
|
5,262 |
|
|
Total operating cost and expense |
|
347,162 |
|
|
|
340,651 |
|
|
Operating income |
|
70,238 |
|
|
|
28,194 |
|
|
Interest expense |
|
(14,482 |
) |
|
|
(15,657 |
) |
|
Other income, net |
|
2,646 |
|
|
|
2,214 |
|
|
Income from continuing operations before income taxes |
|
58,402 |
|
|
|
14,751 |
|
|
Provision for income taxes |
|
(12,157 |
) |
|
|
(2,792 |
) |
|
Income from continuing operations |
|
46,245 |
|
|
|
11,959 |
|
|
Discontinued operations: |
|
|
|
|
||||
Loss from discontinued operations before income taxes |
|
(107 |
) |
|
|
(1,765 |
) |
|
Benefit from income taxes |
|
27 |
|
|
|
452 |
|
|
Loss from discontinued operations |
|
(80 |
) |
|
|
(1,313 |
) |
|
Net income and comprehensive income |
$ |
46,165 |
|
|
$ |
10,646 |
|
|
|
|
|
|
|
||||
Earnings (loss) per share: |
|
|
|
|
||||
Basic: |
|
|
|
|
||||
Continuing operations |
$ |
1.23 |
|
|
$ |
0.29 |
|
|
Discontinued operations |
$ |
(0.00 |
) |
|
$ |
(0.03 |
) |
|
Total basic earnings per share |
$ |
1.22 |
|
|
$ |
0.26 |
|
|
Diluted: |
|
|
|
|
||||
Continuing operations |
$ |
1.18 |
|
|
$ |
0.28 |
|
|
Discontinued operations |
$ |
(0.00 |
) |
|
$ |
(0.03 |
) |
|
Total diluted earnings per share |
$ |
1.18 |
|
|
$ |
0.25 |
|
|
|
|
|
|
|
||||
Weighted-average shares outstanding: |
|
|
|
|
||||
Basic shares |
|
37,721 |
|
|
|
41,399 |
|
|
Diluted shares |
|
39,109 |
|
|
|
42,184 |
|
|
|
|
|||||||
Adtalem Global Education Inc. Consolidated Statements of Cash Flows (unaudited) (in thousands) |
||||||||
|
|
|
|
|
||||
|
Three Months Ended |
|
||||||
|
September 30, |
|
||||||
|
|
2024 |
|
|
|
2023 |
|
|
Operating activities: |
|
|
|
|
||||
Net income |
$ |
46,165 |
|
|
$ |
10,646 |
|
|
Loss from discontinued operations |
|
80 |
|
|
|
1,313 |
|
|
Income from continuing operations |
|
46,245 |
|
|
|
11,959 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Stock-based compensation |
|
9,451 |
|
|
|
7,455 |
|
|
Amortization and impairments to operating lease assets |
|
6,948 |
|
|
|
8,765 |
|
|
Depreciation |
|
9,803 |
|
|
|
9,338 |
|
|
Amortization of acquired intangible assets |
|
2,805 |
|
|
|
10,677 |
|
|
Amortization of debt discount and issuance costs |
|
1,113 |
|
|
|
1,155 |
|
|
Provision for bad debts |
|
13,720 |
|
|
|
10,226 |
|
|
Deferred income taxes |
|
16,456 |
|
|
|
2,165 |
|
|
Loss on disposals of property and equipment |
|
107 |
|
|
|
38 |
|
|
(Gain) loss on investments |
|
(613 |
) |
|
|
447 |
|
|
Changes in assets and liabilities: |
|
|
|
|
||||
Accounts and financing receivables |
|
(56,803 |
) |
|
|
(54,867 |
) |
|
Prepaid expenses and other current assets |
|
(7,389 |
) |
|
|
(5,532 |
) |
|
Cloud computing implementation assets |
|
(7,888 |
) |
|
|
(4,224 |
) |
|
Accounts payable |
|
(8,508 |
) |
|
|
(2,818 |
) |
|
Accrued payroll and benefits |
|
(21,501 |
) |
|
|
(8,882 |
) |
|
Accrued liabilities |
|
(8,467 |
) |
|
|
13,770 |
|
|
Deferred revenue |
|
106,156 |
|
|
|
98,658 |
|
|
Operating lease liabilities |
|
(7,232 |
) |
|
|
(10,053 |
) |
|
Other assets and liabilities |
|
(4,836 |
) |
|
|
(2,163 |
) |
|
Net cash provided by operating activities-continuing operations |
|
89,567 |
|
|
|
86,114 |
|
|
Net cash (used in) provided by operating activities-discontinued operations |
|
(251 |
) |
|
|
8,959 |
|
|
Net cash provided by operating activities |
|
89,316 |
|
|
|
95,073 |
|
|
Investing activities: |
|
|
|
|
||||
Capital expenditures |
|
(10,414 |
) |
|
|
(10,434 |
) |
|
Proceeds from sales of marketable securities |
|
2,187 |
|
|
|
400 |
|
|
Purchases of marketable securities |
|
(1,308 |
) |
|
|
(300 |
) |
|
Net cash used in investing activities |
|
(9,535 |
) |
|
|
(10,334 |
) |
|
Financing activities: |
|
|
|
|
||||
Proceeds from exercise of stock options |
|
9,498 |
|
|
|
550 |
|
|
Employee taxes paid on withholding shares |
|
(10,717 |
) |
|
|
(5,651 |
) |
|
Proceeds from stock issued under Colleague Stock Purchase Plan |
|
298 |
|
|
|
190 |
|
|
Repurchases of common stock for treasury |
|
(33,190 |
) |
|
|
(90,477 |
) |
|
Proceeds from issuance of long-term debt |
|
9,873 |
|
|
|
— |
|
|
Repayments of long-term debt |
|
(9,873 |
) |
|
|
— |
|
|
Net cash used in financing activities |
|
(34,111 |
) |
|
|
(95,388 |
) |
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
45,670 |
|
|
|
(10,649 |
) |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
221,202 |
|
|
|
275,075 |
|
|
Cash, cash equivalents and restricted cash at end of period |
$ |
266,872 |
|
|
$ |
264,426 |
|
|
Non-cash investing and financing activities: |
|
|
|
|
||||
Accrued capital expenditures |
$ |
4,193 |
|
|
$ |
6,087 |
|
|
Accrued liability for repurchases of common stock |
$ |
800 |
|
|
$ |
3,600 |
|
|
Accrued excise tax on share repurchases |
$ |
3,259 |
|
|
$ |
1,928 |
|
|
|
|
|||||||
Adtalem Global Education Inc. Segment Information (unaudited) (in thousands) |
|||||||||||||
|
Three Months Ended |
||||||||||||
|
September 30, |
||||||||||||
|
|
|
|
|
Increase/(Decrease) |
|
|||||||
|
|
2024 |
|
|
|
2023 |
|
|
$ |
|
% |
|
|
Revenue: |
|
|
|
|
|
|
|
|
|||||
Chamberlain |
$ |
167,930 |
|
|
$ |
142,596 |
|
|
$ |
25,334 |
|
17.8 |
% |
Walden |
|
161,513 |
|
|
|
141,608 |
|
|
|
19,905 |
|
14.1 |
% |
Medical and Veterinary |
|
87,957 |
|
|
|
84,641 |
|
|
|
3,316 |
|
3.9 |
% |
Total consolidated revenue |
$ |
417,400 |
|
|
$ |
368,845 |
|
|
$ |
48,555 |
|
13.2 |
% |
Operating income (loss): |
|
|
|
|
|
|
|
|
|||||
Chamberlain |
$ |
25,974 |
|
|
$ |
24,324 |
|
|
$ |
1,650 |
|
6.8 |
% |
Walden |
|
39,837 |
|
|
|
1,938 |
|
|
|
37,899 |
|
1,955.6 |
% |
Medical and Veterinary |
|
14,671 |
|
|
|
14,363 |
|
|
|
308 |
|
2.1 |
% |
Home Office |
|
(10,244 |
) |
|
|
(12,431 |
) |
|
|
2,187 |
|
17.6 |
% |
Total consolidated operating income |
$ |
70,238 |
|
|
$ |
28,194 |
|
|
$ |
42,044 |
|
149.1 |
% |
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 integration expense, amortization of acquired intangible assets, litigation reserve, debt modification costs, 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 integration expense, amortization of acquired intangible assets, litigation reserve, debt modification costs, 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 integration expense, amortization of acquired intangible assets, litigation reserve, and debt modification costs. 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 integration expense, litigation reserve, and debt modification costs. 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 workforce reductions, costs to exit certain course offerings, and prior real estate consolidations at Adtalem’s home office. We do not include normal, recurring, cash operating expenses in our restructuring expense.
- Business 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 integration expense.
- Amortization of acquired intangible assets.
- Amortization of cloud computing implementation assets.
- Reserves related to significant litigation and debt modification costs related to refinancing our Term Loan B loan.
- Loss from discontinued operations includes expense from ongoing litigation costs and settlements related to the DeVry University and Carrington College divestitures.
Adtalem Global Education Inc. Non-GAAP Operating Income by Segment (unaudited) (in thousands) |
||||||||||||||||
|
|
Three Months Ended |
||||||||||||||
|
|
September 30, |
||||||||||||||
|
|
|
|
|
|
|
|
Increase/(Decrease) |
|
|||||||
|
|
2024 |
|
2023 |
|
$ |
|
% |
|
|||||||
Chamberlain: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income (GAAP) |
|
$ |
25,974 |
|
|
$ |
24,324 |
|
|
$ |
1,650 |
|
|
6.8 |
|
% |
Restructuring expense |
|
|
1,858 |
|
|
|
— |
|
|
|
1,858 |
|
|
|
|
|
Adjusted operating income (non-GAAP) |
|
$ |
27,832 |
|
|
$ |
24,324 |
|
|
$ |
3,508 |
|
|
14.4 |
|
% |
Operating margin (GAAP) |
|
|
15.5 |
|
% |
|
17.1 |
|
% |
|
|
|
|
|
||
Operating margin (non-GAAP) |
|
|
16.6 |
|
% |
|
17.1 |
|
% |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Walden: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income (GAAP) |
|
$ |
39,837 |
|
|
$ |
1,938 |
|
|
$ |
37,899 |
|
|
1,955.6 |
|
% |
Amortization of acquired intangible assets |
|
|
2,805 |
|
|
|
10,677 |
|
|
|
(7,872 |
) |
|
|
|
|
Litigation reserve |
|
|
— |
|
|
|
18,500 |
|
|
|
(18,500 |
) |
|
|
|
|
Adjusted operating income (non-GAAP) |
|
$ |
42,642 |
|
|
$ |
31,115 |
|
|
$ |
11,527 |
|
|
37.0 |
|
% |
Operating margin (GAAP) |
|
|
24.7 |
|
% |
|
1.4 |
|
% |
|
|
|
|
|
||
Operating margin (non-GAAP) |
|
|
26.4 |
|
% |
|
22.0 |
|
% |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Medical and Veterinary: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income (GAAP) |
|
$ |
14,671 |
|
|
$ |
14,363 |
|
|
$ |
308 |
|
|
2.1 |
|
% |
Restructuring expense |
|
|
59 |
|
|
|
114 |
|
|
|
(55 |
) |
|
|
|
|
Adjusted operating income (non-GAAP) |
|
$ |
14,730 |
|
|
$ |
14,477 |
|
|
$ |
253 |
|
|
1.7 |
|
% |
Operating margin (GAAP) |
|
|
16.7 |
|
% |
|
17.0 |
|
% |
|
|
|
|
|
||
Operating margin (non-GAAP) |
|
|
16.7 |
|
% |
|
17.1 |
|
% |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Home Office: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating loss (GAAP) |
|
$ |
(10,244 |
) |
|
$ |
(12,431 |
) |
|
$ |
2,187 |
|
|
17.6 |
|
% |
Restructuring expense |
|
|
177 |
|
|
|
562 |
|
|
|
(385 |
) |
|
|
|
|
Business integration expense |
|
|
— |
|
|
|
5,262 |
|
|
|
(5,262 |
) |
|
|
|
|
Debt modification costs |
|
|
712 |
|
|
|
— |
|
|
|
712 |
|
|
|
|
|
Adjusted operating loss (non-GAAP) |
|
$ |
(9,355 |
) |
|
$ |
(6,607 |
) |
|
$ |
(2,748 |
) |
|
(41.6 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adtalem Global Education: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income (GAAP) |
|
$ |
70,238 |
|
|
$ |
28,194 |
|
|
$ |
42,044 |
|
|
149.1 |
|
% |
Restructuring expense |
|
|
2,094 |
|
|
|
676 |
|
|
|
1,418 |
|
|
|
|
|
Business integration expense |
|
|
— |
|
|
|
5,262 |
|
|
|
(5,262 |
) |
|
|
|
|
Amortization of acquired intangible assets |
|
|
2,805 |
|
|
|
10,677 |
|
|
|
(7,872 |
) |
|
|
|
|
Litigation reserve |
|
|
— |
|
|
|
18,500 |
|
|
|
(18,500 |
) |
|
|
|
|
Debt modification costs |
|
|
712 |
|
|
|
— |
|
|
|
712 |
|
|
|
|
|
Adjusted operating income (non-GAAP) |
|
$ |
75,849 |
|
|
$ |
63,309 |
|
|
$ |
12,540 |
|
|
19.8 |
|
% |
Operating margin (GAAP) |
|
|
16.8 |
|
% |
|
7.6 |
|
% |
|
|
|
|
|
||
Operating margin (non-GAAP) |
|
|
18.2 |
|
% |
|
17.2 |
|
% |
|
|
|
|
|
||
Adtalem Global Education Inc. Non-GAAP Adjusted EBITDA by Segment (unaudited) (in thousands) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
||||||||||||||
|
|
September 30, |
||||||||||||||
|
|
|
|
|
|
|
|
Increase/(Decrease) |
|
|||||||
|
|
2024 |
|
2023 |
|
$ |
|
% |
|
|||||||
Chamberlain: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income (GAAP) |
|
$ |
25,974 |
|
|
$ |
24,324 |
|
|
$ |
1,650 |
|
|
6.8 |
|
% |
Restructuring expense |
|
|
1,858 |
|
|
|
— |
|
|
|
1,858 |
|
|
|
|
|
Depreciation |
|
|
5,368 |
|
|
|
4,116 |
|
|
|
1,252 |
|
|
|
|
|
Amortization of cloud computing implementation assets |
|
|
652 |
|
|
|
200 |
|
|
|
452 |
|
|
|
|
|
Stock-based compensation |
|
|
3,119 |
|
|
|
2,907 |
|
|
|
212 |
|
|
|
|
|
Adjusted EBITDA (non-GAAP) |
|
$ |
36,971 |
|
|
$ |
31,547 |
|
|
$ |
5,424 |
|
|
17.2 |
|
% |
Adjusted EBITDA margin (non-GAAP) |
|
|
22.0 |
|
% |
|
22.1 |
|
% |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Walden: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income (GAAP) |
|
$ |
39,837 |
|
|
$ |
1,938 |
|
|
$ |
37,899 |
|
|
1,955.6 |
|
% |
Amortization of acquired intangible assets |
|
|
2,805 |
|
|
|
10,677 |
|
|
|
(7,872 |
) |
|
|
|
|
Litigation reserve |
|
|
— |
|
|
|
18,500 |
|
|
|
(18,500 |
) |
|
|
|
|
Depreciation |
|
|
1,682 |
|
|
|
1,974 |
|
|
|
(292 |
) |
|
|
|
|
Amortization of cloud computing implementation assets |
|
|
701 |
|
|
|
188 |
|
|
|
513 |
|
|
|
|
|
Stock-based compensation |
|
|
2,740 |
|
|
|
1,864 |
|
|
|
876 |
|
|
|
|
|
Adjusted EBITDA (non-GAAP) |
|
$ |
47,765 |
|
|
$ |
35,141 |
|
|
$ |
12,624 |
|
|
35.9 |
|
% |
Adjusted EBITDA margin (non-GAAP) |
|
|
29.6 |
|
% |
|
24.8 |
|
% |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Medical and Veterinary: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income (GAAP) |
|
$ |
14,671 |
|
|
$ |
14,363 |
|
|
$ |
308 |
|
|
2.1 |
|
% |
Restructuring expense |
|
|
59 |
|
|
|
114 |
|
|
|
(55 |
) |
|
|
|
|
Depreciation |
|
|
2,569 |
|
|
|
2,892 |
|
|
|
(323 |
) |
|
|
|
|
Amortization of cloud computing implementation assets |
|
|
283 |
|
|
|
52 |
|
|
|
231 |
|
|
|
|
|
Stock-based compensation |
|
|
1,607 |
|
|
|
1,640 |
|
|
|
(33 |
) |
|
|
|
|
Adjusted EBITDA (non-GAAP) |
|
$ |
19,189 |
|
|
$ |
19,061 |
|
|
$ |
128 |
|
|
0.7 |
|
% |
Adjusted EBITDA margin (non-GAAP) |
|
|
21.8 |
|
% |
|
22.5 |
|
% |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Home Office: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating loss (GAAP) |
|
$ |
(10,244 |
) |
|
$ |
(12,431 |
) |
|
$ |
2,187 |
|
|
17.6 |
|
% |
Restructuring expense |
|
|
177 |
|
|
|
562 |
|
|
|
(385 |
) |
|
|
|
|
Business integration expense |
|
|
— |
|
|
|
5,262 |
|
|
|
(5,262 |
) |
|
|
|
|
Debt modification costs |
|
|
712 |
|
|
|
— |
|
|
|
712 |
|
|
|
|
|
Depreciation |
|
|
184 |
|
|
|
356 |
|
|
|
(172 |
) |
|
|
|
|
Stock-based compensation |
|
|
1,985 |
|
|
|
1,044 |
|
|
|
941 |
|
|
|
|
|
Adjusted EBITDA (non-GAAP) |
|
$ |
(7,186 |
) |
|
$ |
(5,207 |
) |
|
$ |
(1,979 |
) |
|
(38.0 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adtalem Global Education: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (GAAP) |
|
$ |
46,165 |
|
|
$ |
10,646 |
|
|
$ |
35,519 |
|
|
333.6 |
|
% |
Loss from discontinued operations |
|
|
80 |
|
|
|
1,313 |
|
|
|
(1,233 |
) |
|
|
|
|
Interest expense |
|
|
14,482 |
|
|
|
15,657 |
|
|
|
(1,175 |
) |
|
|
|
|
Other income, net |
|
|
(2,646 |
) |
|
|
(2,214 |
) |
|
|
(432 |
) |
|
|
|
|
Provision for income taxes |
|
|
12,157 |
|
|
|
2,792 |
|
|
|
9,365 |
|
|
|
|
|
Operating income (GAAP) |
|
|
70,238 |
|
|
|
28,194 |
|
|
|
42,044 |
|
|
|
|
|
Depreciation and amortization |
|
|
14,244 |
|
|
|
20,455 |
|
|
|
(6,211 |
) |
|
|
|
|
Stock-based compensation |
|
|
9,451 |
|
|
|
7,455 |
|
|
|
1,996 |
|
|
|
|
|
Restructuring expense |
|
|
2,094 |
|
|
|
676 |
|
|
|
1,418 |
|
|
|
|
|
Business integration expense |
|
|
— |
|
|
|
5,262 |
|
|
|
(5,262 |
) |
|
|
|
|
Litigation reserve |
|
|
— |
|
|
|
18,500 |
|
|
|
(18,500 |
) |
|
|
|
|
Debt modification costs |
|
|
712 |
|
|
|
— |
|
|
|
712 |
|
|
|
|
|
Adjusted EBITDA (non-GAAP) |
|
$ |
96,739 |
|
|
$ |
80,542 |
|
|
$ |
16,197 |
|
|
20.1 |
|
% |
Adjusted EBITDA margin (non-GAAP) |
|
|
23.2 |
|
% |
|
21.8 |
|
% |
|
|
|
|
|
||
Adtalem Global Education Inc. Non-GAAP Earnings Disclosure (unaudited) (in thousands, except per share data) |
||||||||
|
|
|
|
|
|
|
||
|
|
Three Months Ended |
||||||
|
|
September 30, |
||||||
|
|
2024 |
|
2023 |
||||
Net income (GAAP) |
|
$ |
46,165 |
|
|
$ |
10,646 |
|
Restructuring expense |
|
|
2,094 |
|
|
|
676 |
|
Business integration expense |
|
|
— |
|
|
|
5,262 |
|
Amortization of acquired intangible assets |
|
|
2,805 |
|
|
|
10,677 |
|
Litigation reserve and debt modification costs |
|
|
712 |
|
|
|
18,500 |
|
Income tax impact on non-GAAP adjustments (1) |
|
|
(1,332 |
) |
|
|
(7,693 |
) |
Loss from discontinued operations |
|
|
80 |
|
|
|
1,313 |
|
Adjusted net income (non-GAAP) |
|
$ |
50,524 |
|
|
$ |
39,381 |
|
(1) |
Represents the income tax impact of non-GAAP continuing operations adjustments that is recognized in our GAAP financial statements. |
|
|
|
|
|
|
|
||
|
|
Three Months Ended |
||||||
|
|
September 30, |
||||||
|
|
2024 |
|
2023 |
||||
Diluted earnings per share (GAAP) |
|
$ |
1.18 |
|
|
$ |
0.25 |
|
Effect on diluted earnings per share: |
|
|
|
|
|
|
||
Restructuring expense |
|
|
0.05 |
|
|
|
0.02 |
|
Business integration expense |
|
|
- |
|
|
|
0.12 |
|
Amortization of acquired intangible assets |
|
|
0.07 |
|
|
|
0.25 |
|
Litigation reserve and debt modification costs |
|
|
0.02 |
|
|
|
0.44 |
|
Income tax impact on non-GAAP adjustments (1) |
|
|
(0.03 |
) |
|
|
(0.18 |
) |
Loss from discontinued operations |
|
|
0.00 |
|
|
|
0.03 |
|
Adjusted earnings per share (non-GAAP) |
|
$ |
1.29 |
|
|
$ |
0.93 |
|
Diluted shares used in non-GAAP EPS calculation |
|
|
39,109 |
|
|
|
42,184 |
|
| 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) |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Three Months Ended |
|
Twelve Months Ended |
|
||||||||||||||||||||||||
|
FY24 |
|
FY25 |
|
FY24 |
|
FY24 |
|
FY24 |
|
FY24 |
|
FY25 |
|
||||||||||||||
|
Q1 |
|
Q1 |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Q1 |
|
||||||||||||||
Net cash provided by operating activities-continuing operations (GAAP) |
$ |
86,114 |
|
|
$ |
89,567 |
|
|
$ |
189,501 |
|
|
$ |
227,600 |
|
|
$ |
276,843 |
|
|
$ |
288,367 |
|
|
$ |
291,820 |
|
|
Capital expenditures |
|
(10,434 |
) |
|
|
(10,414 |
) |
|
|
(31,070 |
) |
|
|
(38,713 |
) |
|
|
(44,137 |
) |
|
|
(48,893 |
) |
|
|
(48,873 |
) |
|
Free cash flow (non-GAAP) |
$ |
75,680 |
|
|
$ |
79,153 |
|
|
$ |
158,431 |
|
|
$ |
188,887 |
|
|
$ |
232,706 |
|
|
$ |
239,474 |
|
|
$ |
242,947 |
|
|
|
|
|
||||||||||||||||||||||||||
Adtalem Global Education Inc. Non-GAAP Net Leverage Disclosure (unaudited) (in thousands) |
||||
|
|
|
||
|
Twelve Months Ended |
|
||
|
September 30, 2024 |
|
||
Adtalem Global Education: |
|
|
||
Net income (GAAP) |
$ |
172,296 |
|
|
Income from discontinued operations |
|
(297 |
) |
|
Interest expense |
|
62,484 |
|
|
Other income, net |
|
(10,974 |
) |
|
Provision for income taxes |
|
35,589 |
|
|
Depreciation and amortization |
|
72,241 |
|
|
Stock-based compensation |
|
27,943 |
|
|
Restructuring expense |
|
3,288 |
|
|
Business integration expense |
|
28,953 |
|
|
Loss on assets held for sale |
|
647 |
|
|
Debt modification costs |
|
1,560 |
|
|
Adjusted EBITDA (non-GAAP) |
$ |
393,730 |
|
|
|
|
|
||
|
September 30, 2024 |
|
||
Long-term debt |
$ |
658,283 |
|
|
Less: Cash and cash equivalents |
|
(264,798 |
) |
|
Net debt (non-GAAP) |
$ |
393,485 |
|
|
|
|
|
||
Net leverage (non-GAAP) |
1.0 x |
|
||
|
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241029106618/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
What was Adtalem's (ATGE) revenue growth in Q1 FY2025?
How much did Adtalem's (ATGE) enrollment grow in Q1 FY2025?
What is Adtalem's (ATGE) FY2025 revenue guidance?
What was Adtalem's (ATGE) adjusted EPS in Q1 FY2025?
