CHICAGO--(BUSINESS WIRE)--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
|
|
Year Ended
|
|||||||||
|
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 |
