Revenue up 8.4% YoY
Total enrollment up 6.2% YoY
Diluted earnings per share $0.98; Adjusted EPS
$1.23, growth of 5.1% YoY
Second quarter highlights
- Revenue $393.2 million, up 8.4% year-over-year
- Total student enrollment 81,772, up 6.2% year-over-year
- Chamberlain University fourth straight quarter of total
enrollment growth, up 6.6% year-over-year
- Walden University accelerated total enrollment growth, up 7.9%
year-over-year
- Investing in Growth with Purpose strategy, GAAP net income
$39.9 million, and adjusted EBITDA $92.6 million, up 2.2%
year-over-year
Capital allocation
- Completed $300 million February 2022 Board authorized share
repurchase program on Jan. 16, 2024, representing a significant
return for our shareholders
- New $300 million Board authorized share repurchase program
through January 2027
- Repaid $50 million of outstanding Term Loan B balance on Jan.
26, 2024; remaining $253 million Term Loan B balance repriced,
reducing interest rate by 50 bps
- Net leverage 1.5x as of Dec. 31, 2023
Fiscal year 2024 guidance
- Revenue $1,520 million to $1,560 million
- Adjusted earnings per share $4.55 to $4.75
Adtalem Global Education Inc. (NYSE: ATGE) today reported second
quarter fiscal 2024 results (ended Dec. 31, 2023) reflecting
accelerated total enrollment and revenue growth, underpinned by
strong profitability and high-quality academic outcomes through
executing Growth with Purpose strategy.
“Adtalem once again performed ahead of expectations this
quarter, solidifying our position as a leading healthcare
educator,” said Steve Beard, president, and chief executive
officer, Adtalem Global Education. “Our success was primarily
driven by the continued execution of our Growth with Purpose
strategy, which has yielded robust organic revenue growth, improved
operational efficiencies and outstanding student outcomes. The
Company’s foundation remains strong, affording us the opportunity
to solidify our market-leading position and evolve the way
education is delivered.”
Beard continued, “At a time when post-secondary and professional
healthcare education is more critical than ever, we are continuing
to invest in expanding our national reach to create additional
opportunities for our institutions to connect with prospective
students and employers, and provide opportunities for academic
achievement and professional success. Reflecting the higher level
of sustainable enrollment and our confidence in our ability to
continue to deliver strong top- and bottom-line performance, we are
raising our fiscal year 2024 guidance. We are increasingly
well-positioned to make an outsized positive impact on U.S.
healthcare workforce, delivering practice-ready clinicians at
scale.”
Financial Highlights
Selected financial data for the three months ended Dec. 31,
2023:
- Revenue of $393.2 million increased 8.4% compared with the
prior year.
- Operating income was $58.6 million, compared with $45.6 million
in the prior year; adjusted operating income was $75.6 million,
compared with $77.9 million in the prior year.
- Net income was $39.9 million, compared with $24.7 million in
the prior year; adjusted net income was $50.3 million, compared
with $53.8 million in the prior year.
- Diluted earnings per share was $0.98, compared with $0.53 in
the prior year; adjusted earnings per share was $1.23, compared
with $1.17 in the prior year.
- Adjusted EBITDA was $92.6 million, compared with $90.5 million
in the prior year; adjusted EBITDA margin was 23.5%, compared with
25.0% in the prior year.
Business Highlights
- Chamberlain University continues to build a robust pipeline of
nurses through programs like its Bachelor of Science in Nursing
(BSN) Online Option, which offers flexibility and experiential
learning opportunities to students in 32 states. The program has
more than 1,100 current enrollees in just three years since
launch.
- Walden University remains committed to driving affordability
and accessibility for working professionals through its Believe and
Achieve™ scholarship, promoting student persistence and graduation
by rewarding students for progress towards their degree, with
tuition savings with over 15,000 students participating.
- Chamberlain’s Psychiatric-Mental Health Nurse Practitioner
program currently enrolls 2,200 students and Walden’s Social
Behavioral Health programs enroll 18,000 students, addressing the
nation’s growing challenges related to mental health. As one in
five U.S. adults experience mental illness each year, according to
Substance Abuse and Mental Health Services Administration, our
institutions continue to be essential to aid in resolving this
issue.
- Ross University School of Veterinary Medicine (RUSVM) continues
to amplify its impact and advance One Health through its newest
partnership with the Government of St. Kitts and Nevis. Through the
partnership they will transform St. Kitts and Nevis into a
sustainable island state where RUSVM students and faculty will
provide support through research in project areas put forth by the
Ministries of Health and Agriculture. Learn more about RUSVM’s
commitment to One Health and the role veterinarians play in
achieving the best health results for all.
- Ross University School of Medicine’s (RUSM) Return Home
clinical offering is fostering a diverse physician pipeline for
local communities, with RUSM students now able to complete clinical
rotations within the communities they reside through select partner
hospitals.
Segment Highlights
Chamberlain
$ in millions
Three Months Ended Dec.
31,
2023
2022
% Change
Revenue
$153.6
$141.4
8.6%
Operating Income
$29.6
$33.2
(10.8)%
Adj. Operating Income
$29.6
$33.2
(10.8)%
Adj. EBITDA
$36.9
$37.7
(2.2)%
Total Students (1)
35,592
33,390
6.6%
- Total student enrollment increased 6.6% compared with the prior
year, driven by continued growth in pre-licensure and
post-licensure nursing programs as well as high persistence.
Walden
$ in millions
Three Months Ended Dec.
31,
2023
2022
% Change
Revenue
$146.8
$131.9
11.3%
Operating Income
$21.6
$12.8
68.8%
Adj. Operating Income
$30.2
$29.0
3.9%
Adj. EBITDA
$34.6
$31.6
9.8%
Total Students (1)
40,971
37,956
7.9%
- Total student enrollment increased 7.9% compared with the prior
year, driven by growth in healthcare and non-healthcare programs
and higher persistence.
Medical and Veterinary
$ in millions
Three Months Ended
Dec. 31,
2023
2022
% Change
Revenue
$92.9
$89.5
3.8%
Operating Income
$22.0
$22.5
(2.0)%
Adj. Operating Income
$22.1
$22.5
(2.0)%
Adj. EBITDA
$26.4
$25.8
2.3%
Total Students (1)
5,209
5,634
(7.5)%
- Medical and Veterinary schools do not have a new enrollment
period starting in Q2 FY 2024. Q2 FY 2024 enrollment period is the
same as Q1 FY 2024 enrollment period and corresponding reported
enrollment data.
(1) Represents total students attending sessions during each
institution’s most recent enrollment period in Q2 FY 2024 and Q2 FY
2023.
Fiscal Year 2024 Outlook
Adtalem guidance for fiscal year 2024, raises revenue guidance
to a range of $1,520 million to $1,560 million from $1,470 million
to $1,530 million, and raises adjusted earnings per share to be in
the range of $4.55 to $4.75 from $4.25 to $4.45.
Conference Call and Webcast Information
Adtalem will hold a conference call to discuss its fiscal 2024
second quarter results today at 4:00 p.m. CT (5:00 p.m. ET).
The call can be accessed by dialing +1 877-407-6184 (U.S.
participants) or +1 201-389-0877 (international participants)
stating “Adtalem earnings call” or use conference ID: 13743388. The
call will be simulcast through the Adtalem investor relations
website at: https://investors.adtalem.com.
Adtalem will archive a replay of the call for 30 days. To access
the replay, dial +1 877-660-6853 (U.S.) or +1 201-612-7415
(international), conference ID: 13743388, or visit the Adtalem
investor relations website.
About Adtalem Global Education
Adtalem Global Education (NYSE: ATGE) is a national leader in
post-secondary education and leading provider of professional
talent to the healthcare industry. With a dedicated focus on
driving strong outcomes that increase workforce preparedness,
Adtalem empowers a diverse learner population to achieve their
goals and make inspiring contributions to their communities.
Adtalem is the parent organization of American University of the
Caribbean School of Medicine, Chamberlain University, Ross
University School of Medicine, Ross University School of Veterinary
Medicine and Walden University. Adtalem’s family of institutions
has more than 300,000 alumni and nearly 10,000 employees. Adtalem
was named one of America’s Most Responsible Companies in 2021 and
2023 by Newsweek and Statista, and one of America’s Best Employers
for Diversity in 2021 and 2022 by Forbes and Statista. Visit
Adtalem.com for more information and follow on X, formerly known as
Twitter, and LinkedIn.
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 can also be
identified by words 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 risk 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), the Form 8-K filed
with the SEC today 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.
Adtalem Global Education
Inc.
Consolidated Balance
Sheets
(unaudited)
(in thousands)
December 31,
June 30,
2023
2023
Assets:
Current assets:
Cash and cash equivalents
$
182,894
$
273,689
Restricted cash
3,183
1,386
Accounts receivable, net
133,666
102,749
Prepaid expenses and other current
assets
58,356
100,715
Total current assets
378,099
478,539
Noncurrent assets:
Property and equipment, net
260,484
258,522
Operating lease assets
176,863
174,677
Deferred income taxes
58,212
56,694
Intangible assets, net
792,328
812,338
Goodwill
961,262
961,262
Other assets, net
65,852
68,509
Assets held for sale
7,825
—
Total noncurrent assets
2,322,826
2,332,002
Total assets
$
2,700,925
$
2,810,541
Liabilities and shareholders'
equity:
Current liabilities:
Accounts payable
$
88,093
$
81,812
Accrued payroll and benefits
45,928
52,041
Accrued liabilities
97,675
105,806
Deferred revenue
135,281
153,871
Current operating lease liabilities
31,596
37,673
Total current liabilities
398,573
431,203
Noncurrent liabilities:
Long-term debt
696,373
695,077
Long-term operating lease liabilities
168,603
163,441
Deferred income taxes
27,243
26,068
Other liabilities
40,734
37,416
Total noncurrent liabilities
932,953
922,002
Total liabilities
1,331,526
1,353,205
Commitments and contingencies
Total shareholders' equity
1,369,399
1,457,336
Total liabilities and shareholders'
equity
$
2,700,925
$
2,810,541
Adtalem Global Education
Inc.
Consolidated Statements of
Income
(unaudited)
(in thousands, except per
share data)
Three Months Ended
Six Months Ended
December 31,
December 31,
2023
2022
2023
2022
Revenue
$
393,242
$
362,834
$
762,087
$
717,103
Operating cost and expense:
Cost of educational services
172,069
159,303
340,687
318,948
Student services and administrative
expense
155,584
141,802
321,679
288,187
Restructuring expense
68
1,363
744
16,428
Business integration expense
6,909
14,816
12,171
24,356
Total operating cost and expense
334,630
317,284
675,281
647,919
Operating income
58,612
45,550
86,806
69,184
Interest expense
(16,693
)
(15,589
)
(32,350
)
(33,349
)
Other income (expense), net
3,563
(1,440
)
5,777
(679
)
Income from continuing operations before
income taxes
45,482
28,521
60,233
35,156
Provision for income taxes
(7,769
)
(4,395
)
(10,561
)
(5,517
)
Income from continuing operations
37,713
24,126
49,672
29,639
Discontinued operations:
Income (loss) from discontinued operations
before income taxes
2,926
524
1,161
(2,741
)
Gain (loss) on disposal of discontinued
operations before income taxes
—
185
—
(3,174
)
(Provision for) benefit from income
taxes
(748
)
(182
)
(296
)
1,521
Income (loss) from discontinued
operations
2,178
527
865
(4,394
)
Net income and comprehensive income
$
39,891
$
24,653
$
50,537
$
25,245
Earnings (loss) per share:
Basic:
Continuing operations
$
0.95
$
0.53
$
1.22
$
0.65
Discontinued operations
$
0.05
$
0.01
$
0.02
$
(0.10
)
Total basic earnings per share
$
1.00
$
0.54
$
1.24
$
0.56
Diluted:
Continuing operations
$
0.92
$
0.52
$
1.20
$
0.64
Discontinued operations
$
0.05
$
0.01
$
0.02
$
(0.10
)
Total diluted earnings per share
$
0.98
$
0.53
$
1.22
$
0.55
Weighted-average shares outstanding:
Basic shares
39,872
45,425
40,636
45,350
Diluted shares
40,787
46,121
41,486
46,232
Adtalem Global Education
Inc.
Consolidated Statements of
Cash Flows
(unaudited)
(in thousands)
Six Months Ended
December 31,
2023
2022
Operating activities:
Net income
$
50,537
$
25,245
(Income) loss from discontinued
operations
(865
)
4,394
Income from continuing operations
49,672
29,639
Adjustments to reconcile net income to net
cash provided by operating activities:
Stock-based compensation expense
13,505
8,113
Amortization and impairments to operating
lease assets
17,340
28,612
Depreciation
20,714
21,461
Amortization of intangible assets
20,010
34,704
Amortization and write-off of debt
discount and issuance costs
2,310
6,819
Provision for bad debts
23,024
14,275
Deferred income taxes
(343
)
(245
)
Loss on disposals, accelerated
depreciation, and impairments to property and equipment
38
3,483
Gain on extinguishment of debt
—
(71
)
(Gain) loss on investments
(575
)
4,950
Unrealized loss on assets held for
sale
647
—
Changes in assets and liabilities:
Accounts receivable
(42,429
)
(25,045
)
Prepaid expenses and other current
assets
(2,143
)
494
Accounts payable
7,824
13,233
Accrued payroll and benefits
(6,073
)
(25,295
)
Accrued liabilities
25,130
(4,849
)
Deferred revenue
(13,540
)
(28,424
)
Operating lease liabilities
(20,441
)
(25,923
)
Other assets and liabilities
(11,601
)
(13,654
)
Net cash provided by operating
activities-continuing operations
83,069
42,277
Net cash provided by (used in) operating
activities-discontinued operations
9,515
(862
)
Net cash provided by operating
activities
92,584
41,415
Investing activities:
Capital expenditures
(30,328
)
(9,747
)
Proceeds from sale of marketable
securities
626
1,256
Purchases of marketable securities
(498
)
(1,257
)
Net cash used in investing
activities-continuing operations
(30,200
)
(9,748
)
Payment for working capital adjustment for
sale of business
—
(3,174
)
Net cash used in investing activities
(30,200
)
(12,922
)
Financing activities:
Proceeds from exercise of stock
options
15,313
1,422
Employee taxes paid on withholding
shares
(6,505
)
(4,108
)
Proceeds from stock issued under Colleague
Stock Purchase Plan
359
289
Repurchases of common stock for
treasury
(160,549
)
—
Payment on equity forward contract
—
(13,162
)
Repayments of long-term debt
—
(150,861
)
Net cash used in financing activities
(151,382
)
(166,420
)
Net decrease in cash, cash equivalents and
restricted cash
(88,998
)
(137,927
)
Cash, cash equivalents and restricted cash
at beginning of period
275,075
347,937
Cash, cash equivalents and restricted cash
at end of period
$
186,077
$
210,010
Non-cash investing and financing
activities:
Accrued capital expenditures
$
9,062
$
5,209
Accrued liability for repurchases of
common stock
$
2,400
$
—
Accrued excise tax on share
repurchases
$
2,358
$
—
Adtalem Global Education
Inc.
Segment Information
(unaudited)
(in thousands)
Three Months Ended
Six Months Ended
December 31,
December 31,
Increase/(Decrease)
Increase/(Decrease)
2023
2022
$
%
2023
2022
$
%
Revenue:
Chamberlain
$
153,553
$
141,396
$
12,157
8.6
%
$
296,149
$
276,801
$
19,348
7.0
%
Walden
146,808
131,940
14,868
11.3
%
288,416
262,841
25,575
9.7
%
Medical and Veterinary
92,881
89,498
3,383
3.8
%
177,522
177,461
61
0.0
%
Total consolidated revenue
$
393,242
$
362,834
$
30,408
8.4
%
$
762,087
$
717,103
$
44,984
6.3
%
Operating income (loss):
Chamberlain
$
29,640
$
33,229
$
(3,589
)
(10.8
)
%
$
53,964
$
59,413
$
(5,449
)
(9.2
)
%
Walden
21,598
12,795
8,803
68.8
%
23,536
15,728
7,808
49.6
%
Medical and Veterinary
22,020
22,462
(442
)
(2.0
)
%
36,383
32,700
3,683
11.3
%
Home Office and Other
(14,646
)
(22,936
)
8,290
36.1
%
(27,077
)
(38,657
)
11,580
30.0
%
Total consolidated operating income
$
58,612
$
45,550
$
13,062
28.7
%
$
86,806
$
69,184
$
17,622
25.5
%
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, intangible amortization expense,
write-off of debt discount and issuance costs, gain on
extinguishment of debt, litigation reserve, investment impairment,
loss on assets held for sale, and (income) 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, intangible amortization expense, write-off of debt
discount and issuance costs, gain on extinguishment of debt,
litigation reserve, investment impairment, loss on assets held for
sale, and (income) 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, intangible
amortization expense, litigation reserve, and loss on assets held
for sale. 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 (income) loss from
discontinued operations, interest expense, other expense (income),
net, provision for income taxes, depreciation and amortization,
stock-based compensation, restructuring expense, business
integration expense, litigation reserve, and loss on assets held
for sale. 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 expense (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 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.
- Intangible amortization expense on acquired intangible
assets.
- 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, and loss on assets held for sale related to a fair
value write-down on assets.
- (Income) loss from discontinued operations includes expense
from ongoing litigation costs and settlements related to the DeVry
University and Carrington College divestitures, a (gain) loss on
sale of ACAMS, Becker, and OCL for working capital adjustments to
the initial sales prices, and the earn-outs we received.
Adtalem Global Education
Inc.
Non-GAAP Operating Income by
Segment
(unaudited)
(in thousands)
Three Months Ended
Six Months Ended
December 31,
December 31,
Increase/(Decrease)
Increase/(Decrease)
2023
2022
$
%
2023
2022
$
%
Chamberlain:
Operating income (GAAP)
$
29,640
$
33,229
$
(3,589
)
(10.8
)
%
$
53,964
$
59,413
$
(5,449
)
(9.2
)
%
Restructuring expense
—
—
—
—
818
(818
)
Adjusted operating income (non-GAAP)
$
29,640
$
33,229
$
(3,589
)
(10.8
)
%
$
53,964
$
60,231
$
(6,267
)
(10.4
)
%
Operating margin (GAAP)
19.3
%
23.5
%
18.2
%
21.5
%
Operating margin (non-GAAP)
19.3
%
23.5
%
18.2
%
21.8
%
Walden:
Operating income (GAAP)
$
21,598
$
12,795
$
8,803
68.8
%
$
23,536
$
15,728
$
7,808
49.6
%
Restructuring expense
(776
)
41
(817
)
(776
)
3,121
(3,897
)
Intangible amortization expense
9,333
16,176
(6,843
)
20,010
34,704
(14,694
)
Litigation reserve
—
—
—
18,500
—
18,500
Adjusted operating income (non-GAAP)
$
30,155
$
29,012
$
1,143
3.9
%
$
61,270
$
53,553
$
7,717
14.4
%
Operating margin (GAAP)
14.7
%
9.7
%
8.2
%
6.0
%
Operating margin (non-GAAP)
20.5
%
22.0
%
21.2
%
20.4
%
Medical and Veterinary:
Operating income (GAAP)
$
22,020
$
22,462
$
(442
)
(2.0
)
%
$
36,383
$
32,700
$
3,683
11.3
%
Restructuring expense
71
87
(16
)
185
6,913
(6,728
)
Adjusted operating income (non-GAAP)
$
22,091
$
22,549
$
(458
)
(2.0
)
%
$
36,568
$
39,613
$
(3,045
)
(7.7
)
%
Operating margin (GAAP)
23.7
%
25.1
%
20.5
%
18.4
%
Operating margin (non-GAAP)
23.8
%
25.2
%
20.6
%
22.3
%
Home Office and Other:
Operating loss (GAAP)
$
(14,646
)
$
(22,936
)
$
8,290
36.1
%
$
(27,077
)
$
(38,657
)
$
11,580
30.0
%
Restructuring expense
773
1,235
(462
)
1,335
5,576
(4,241
)
Business integration expense
6,909
14,816
(7,907
)
12,171
24,356
(12,185
)
Loss on assets held for sale
647
—
647
647
—
647
Adjusted operating loss (non-GAAP)
$
(6,317
)
$
(6,885
)
$
568
8.2
%
$
(12,924
)
$
(8,725
)
$
(4,199
)
(48.1
)
%
Adtalem Global Education:
Operating income (GAAP)
$
58,612
$
45,550
$
13,062
28.7
%
$
86,806
$
69,184
$
17,622
25.5
%
Restructuring expense
68
1,363
(1,295
)
744
16,428
(15,684
)
Business integration expense
6,909
14,816
(7,907
)
12,171
24,356
(12,185
)
Intangible amortization expense
9,333
16,176
(6,843
)
20,010
34,704
(14,694
)
Litigation reserve
—
—
—
18,500
—
18,500
Loss on assets held for sale
647
—
647
647
—
647
Adjusted operating income (non-GAAP)
$
75,569
$
77,905
$
(2,336
)
(3.0
)
%
$
138,878
$
144,672
$
(5,794
)
(4.0
)
%
Operating margin (GAAP)
14.9
%
12.6
%
11.4
%
9.6
%
Operating margin (non-GAAP)
19.2
%
21.5
%
18.2
%
20.2
%
Adtalem Global Education
Inc.
Non-GAAP Adjusted EBITDA by
Segment
(unaudited)
(in thousands)
Three Months Ended
Six Months Ended
December 31,
December 31,
Increase/(Decrease)
Increase/(Decrease)
2023
2022
$
%
2023
2022
$
%
Chamberlain:
Operating income (GAAP)
$
29,640
$
33,229
$
(3,589
)
(10.8
)
%
$
53,964
$
59,413
$
(5,449
)
(9.2
)
%
Restructuring expense
—
—
—
—
818
(818
)
Depreciation
5,162
4,099
1,063
9,478
8,580
898
Stock-based compensation
2,089
404
1,685
4,996
2,677
2,319
Adjusted EBITDA (non-GAAP)
$
36,891
$
37,732
$
(841
)
(2.2
)
%
$
68,438
$
71,488
$
(3,050
)
(4.3
)
%
Adjusted EBITDA margin (non-GAAP)
24.0
%
26.7
%
23.1
%
25.8
%
Walden:
Operating income (GAAP)
$
21,598
$
12,795
$
8,803
68.8
%
$
23,536
$
15,728
$
7,808
49.6
%
Restructuring expense
(776
)
41
(817
)
(776
)
3,121
(3,897
)
Intangible amortization expense
9,333
16,176
(6,843
)
20,010
34,704
(14,694
)
Litigation reserve
—
—
—
18,500
—
18,500
Depreciation
2,305
2,269
36
4,467
4,864
(397
)
Stock-based compensation
2,188
286
1,902
4,052
2,191
1,861
Adjusted EBITDA (non-GAAP)
$
34,648
$
31,567
$
3,081
9.8
%
$
69,789
$
60,608
$
9,181
15.1
%
Adjusted EBITDA margin (non-GAAP)
23.6
%
23.9
%
24.2
%
23.1
%
Medical and Veterinary:
Operating income (GAAP)
$
22,020
$
22,462
$
(442
)
(2.0
)
%
$
36,383
$
32,700
$
3,683
11.3
%
Restructuring expense
71
87
(16
)
185
6,913
(6,728
)
Depreciation
3,110
3,031
79
6,054
6,136
(82
)
Stock-based compensation
1,196
229
967
2,836
1,704
1,132
Adjusted EBITDA (non-GAAP)
$
26,397
$
25,809
$
588
2.3
%
$
45,458
$
47,453
$
(1,995
)
(4.2
)
%
Adjusted EBITDA margin (non-GAAP)
28.4
%
28.8
%
25.6
%
26.7
%
Home Office and Other:
Operating loss (GAAP)
$
(14,646
)
$
(22,936
)
$
8,290
36.1
%
$
(27,077
)
$
(38,657
)
$
11,580
30.0
%
Restructuring expense
773
1,235
(462
)
1,335
5,576
(4,241
)
Business integration expense
6,909
14,816
(7,907
)
12,171
24,356
(12,185
)
Loss on assets held for sale
647
—
647
647
—
647
Depreciation
359
1,257
(898
)
715
1,881
(1,166
)
Stock-based compensation
577
1,049
(472
)
1,621
1,541
80
Adjusted EBITDA (non-GAAP)
$
(5,381
)
$
(4,579
)
$
(802
)
(17.5
)
%
$
(10,588
)
$
(5,303
)
$
(5,285
)
(99.7
)
%
Adtalem Global Education:
Net income (GAAP)
$
39,891
$
24,653
$
15,238
61.8
%
$
50,537
$
25,245
$
25,292
100.2
%
(Income) loss from discontinued
operations
(2,178
)
(527
)
(1,651
)
(865
)
4,394
(5,259
)
Interest expense
16,693
15,589
1,104
32,350
33,349
(999
)
Other expense (income), net
(3,563
)
1,440
(5,003
)
(5,777
)
679
(6,456
)
Provision for income taxes
7,769
4,395
3,374
10,561
5,517
5,044
Operating income (GAAP)
58,612
45,550
13,062
86,806
69,184
17,622
Depreciation and amortization
20,269
26,832
(6,563
)
40,724
56,165
(15,441
)
Stock-based compensation
6,050
1,968
4,082
13,505
8,113
5,392
Restructuring expense
68
1,363
(1,295
)
744
16,428
(15,684
)
Business integration expense
6,909
14,816
(7,907
)
12,171
24,356
(12,185
)
Litigation reserve
—
—
—
18,500
—
18,500
Loss on assets held for sale
647
—
647
647
—
647
Adjusted EBITDA (non-GAAP)
$
92,555
$
90,529
$
2,026
2.2
%
$
173,097
$
174,246
$
(1,149
)
(0.7
)
%
Adjusted EBITDA margin (non-GAAP)
23.5
%
25.0
%
22.7
%
24.3
%
Adtalem Global Education
Inc.
Non-GAAP Earnings
Disclosure
(unaudited)
(in thousands, except per
share data)
Three Months Ended
Six Months Ended
December 31,
December 31,
2023
2022
2023
2022
Net income (GAAP)
$
39,891
$
24,653
$
50,537
$
25,245
Restructuring expense
68
1,363
744
16,428
Business integration expense
6,909
14,816
12,171
24,356
Intangible amortization expense
9,333
16,176
20,010
34,704
Write-off of debt discount and issuance
costs, gain on extinguishment of debt, litigation reserve,
investment impairment, and loss on assets held for sale
647
6,402
19,147
9,226
Income tax impact on non-GAAP adjustments
(1)
(4,402
)
(9,111
)
(12,095
)
(18,982
)
(Income) loss from discontinued
operations
(2,178
)
(527
)
(865
)
4,394
Adjusted net income (non-GAAP)
$
50,268
$
53,772
$
89,649
$
95,371
(1) Represents the income tax impact of
non-GAAP continuing operations adjustments that is recognized in
our GAAP financial statements.
Three Months Ended
Six Months Ended
December 31,
December 31,
2023
2022
2023
2022
Diluted earnings per share (GAAP)
$
0.98
$
0.53
$
1.22
$
0.55
Effect on diluted earnings per share:
Restructuring expense
0.00
0.03
0.02
0.36
Business integration expense
0.17
0.32
0.29
0.53
Intangible amortization expense
0.23
0.35
0.48
0.75
Write-off of debt discount and issuance
costs, gain on extinguishment of debt, litigation reserve,
investment impairment, and loss on assets held for sale
0.02
0.14
0.46
0.20
Income tax impact on non-GAAP adjustments
(1)
(0.11
)
(0.20
)
(0.29
)
(0.41
)
(Income) loss from discontinued
operations
(0.05
)
(0.01
)
(0.02
)
0.10
Adjusted earnings per share (non-GAAP)
$
1.23
$
1.17
$
2.16
$
2.06
Diluted shares used in non-GAAP EPS
calculation
40,787
46,121
41,486
46,232
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
Six Months Ended
Twelve Months Ended
FY24
FY23
FY24
FY23
FY24
FY24
FY23
FY23
FY23
Q2
Q2
Q2
Q2
Q2
Q1
Q4
Q3
Q2
Net cash provided by (used in) operating
activities-continuing operations (GAAP)
$
(7,657
)
$
(49,199
)
$
83,069
$
42,277
$
246,476
$
204,934
$
205,684
$
255,052
$
225,247
Capital expenditures
(15,282
)
(4,196
)
(30,328
)
(9,747
)
(57,589
)
(46,503
)
(37,008
)
(27,861
)
(26,029
)
Free cash flow (non-GAAP)
$
(22,939
)
$
(53,395
)
$
52,741
$
32,530
$
188,887
$
158,431
$
168,676
$
227,191
$
199,218
Adtalem Global Education
Inc.
Non-GAAP Net Leverage
Disclosure
(unaudited)
(in thousands)
Twelve Months Ended
December 31, 2023
Adtalem Global Education:
Net income (GAAP)
$
118,650
Net loss from discontinued operations
3,135
Interest expense
62,101
Other income, net
(13,421
)
Provision for income taxes
15,327
Depreciation and amortization
87,373
Stock-based compensation
19,691
Restructuring expense
3,133
Business integration expense
30,476
Litigation reserve
28,500
Loss on assets held for sale
647
Gain on sale of assets
(13,317
)
Adjusted EBITDA (non-GAAP)
$
342,295
December 31, 2023
Long-term debt
$
708,283
Less: Cash and cash equivalents
(182,894
)
Net debt (non-GAAP)
$
525,389
Net leverage (non-GAAP)
1.5 x
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240130802793/en/
Investor Contact Jay Spitzer
Investor.Relations@Adtalem.com +1 312-906-6600
Media Contact Talisha Holmes AdtalemMedia@Adtalem.com +1
872-270-0331
Grafico Azioni Adtalem Global Education (NYSE:ATGE)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Adtalem Global Education (NYSE:ATGE)
Storico
Da Gen 2024 a Gen 2025
