Total enrollment up 10.0% YoY for fourth
quarter 2024
Revenue up 9.2% YoY for fiscal year 2024
Fiscal year 2024 diluted earnings per share
$3.39; Adjusted EPS $5.01, growth of 19.0% YoY
Fourth quarter and fiscal year highlights
- Revenue $409.9 million, up 12.4% year-over-year for the fourth
quarter, and fiscal year revenue $1,584.7 million, up 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 $136.8 million and fiscal year adjusted EBITDA
$377.5 million, up 9.9% year-over-year
Fiscal year capital allocation
- Repurchased $261 million of shares, $212 million remaining
under $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 1.2x as of June 30, 2024
Fiscal year 2025 guidance
- Revenue $1,660 million to $1,700 million
- Adjusted earnings per share $5.60 to $5.85
Adtalem Global Education Inc. (NYSE: ATGE), the leading
healthcare educator in the United States, today reported fourth
quarter and fiscal year 2024 results (ended June 30, 2024)
demonstrating disciplined operational performance with total
enrollment growth resulting in strong earnings and robust cash
generation.
“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 10% enrollment growth during the fourth quarter.
This trajectory is a testament to our unwavering commitment to
excellence,” said Steve Beard, president and chief executive
officer, Adtalem Global Education. “We are confident that fiscal
year 2025 will set new benchmarks for Adtalem, reflected in the
forward-looking guidance we have established today.”
Financial Highlights
Selected financial data for the three months ended June 30,
2024:
- Revenue of $409.9 million increased 12.4% compared with the
prior year.
- Operating income was $68.5 million, compared with $39.6 million
in the prior year; adjusted operating income was $80.1 million,
compared with $69.9 million in the prior year.
- Net income was $49.4 million, compared with $22.2 million in
the prior year; adjusted net income was $52.8 million, compared
with $45.3 million in the prior year.
- Diluted earnings per share was $1.28, compared with $0.50 in
the prior year; adjusted earnings per share was $1.37, compared
with $1.03 in the prior year.
- Adjusted EBITDA was $97.4 million, compared with $83.3 million
in the prior year; adjusted EBITDA margin was 23.8%, compared with
22.8% in the prior year.
Selected financial data for the fiscal year ended June 30,
2024:
- Revenue of $1,584.7 million increased 9.2% compared with the
prior year.
- Operating income was $217.1 million, compared with $168.2
million in the prior year; adjusted operating income was $308.8
million, compared with $287.6 million in the prior year.
- Net income was $136.8 million, compared with $93.4 million in
the prior year; adjusted net income was $201.8 million, compared
with $192.2 million in the prior year.
- Diluted earnings per share was $3.39, compared with $2.05 in
the prior year; adjusted earnings per share was $5.01, compared
with $4.21 in the prior year.
- Adjusted EBITDA was $377.5 million, compared with $343.4
million in the prior year; adjusted EBITDA margin was 23.8%,
compared with 23.7% 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 in Barbados, 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 in Barbados and the Eastern Caribbean,
enhancing the health workforce’s capacity to handle emergencies,
disasters and non-communicable diseases.
Segment Highlights
Chamberlain
$ in millions
Three Months Ended June
30,
Year Ended June
30,
2024
2023
% Change
2024
2023
% Change
Revenue
$167.0
$144.5
15.6%
$633.5
$571.0
10.9%
Operating Income
$40.5
$35.7
13.5%
$137.8
$134.7
2.3%
Adj. Operating Income
$40.5
$35.7
13.5%
$137.8
$135.5
1.7%
Adj. EBITDA
$47.3
$41.1
15.1%
$166.2
$157.5
5.5%
Total Students (1)
36,750
33,284
10.4%
- 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
$156.3
$138.0
13.3%
$595.3
$533.7
11.5%
Operating Income
$30.1
$9.8
206.4%
$77.2
$35.9
115.1%
Adj. Operating Income
$37.4
$32.2
16.2%
$130.5
$110.4
18.3%
Adj. EBITDA
$41.1
$35.3
16.6%
$146.8
$123.7
18.7%
Total Students (1)
41,845
37,582
11.3%
- 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
$86.6
$82.1
5.4%
$355.8
$346.1
2.8%
Operating Income
$11.9
$10.5
13.8%
$71.1
$59.6
19.1%
Adj. Operating Income
$12.0
$10.8
10.7%
$71.5
$67.3
6.2%
Adj. EBITDA
$16.5
$14.7
12.3%
$88.9
$82.8
7.3%
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 $1,660 million to $1,700 million, approximately 5% to 7.5%
growth year-over-year. Adjusted earnings per share to be in the
range of $5.60 to $5.85, approximately 12% to 17% growth
year-over-year.
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 (U.S.
participants) or +1 201-389-0877 (international participants) and
stating “Adtalem earnings call” or by using conference ID:
13747739. 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: 13747739, or visit the Adtalem
investor relations website.
About Adtalem Global Education
Adtalem Global Education is the leading provider of healthcare
education in the U.S., shaping the future of healthcare by
preparing a diverse workforce with high-quality academic programs.
We innovate education pathways, align with industry needs and
empower individuals to reach their full potential. Our commitment
to excellence and inclusivity is reflected in our expansive network
of institutions, serving over 80,000 students and supported by a
strong community of over 300,000 alumni and nearly 10,000 dedicated
employees. Discover more Adtalem.com for more information and
follow us on LinkedIn, Instagram and Facebook.
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)
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
Grafico Azioni Adtalem Global Education (NYSE:ATGE)
Storico
Da Feb 2025 a Mar 2025
Grafico Azioni Adtalem Global Education (NYSE:ATGE)
Storico
Da Mar 2024 a Mar 2025
