Improving total enrollment trends
Strategic transformation momentum
Narrows guidance for fiscal year 2023
Third quarter highlights
- Revenue $369.1 million, up 1.3% year-over-year
- Total student enrollment 79,586, down 3.1% year-over-year, a quarterly sequential improvement of 100 basis points
- Chamberlain University strong demand in pre-licensure BSN and post-licensure MSN programs
- Diluted earnings per share $1.00 from $7.04 in the prior year; adjusted earnings per share $1.13, up 34.5% versus prior year
Fiscal year 2023 guidance
- Revenue $1,400 million to $1,450 million
- Adjusted earnings per share $4.05 to $4.20
Repurchased $48 million of shares in the third quarter against $300 million Board authorized share repurchase program
CHICAGO–(BUSINESS WIRE)–Adtalem Global Education Inc. (NYSE: ATGE), a national leader in post-secondary education and a leading provider of professional talent to the healthcare industry, today reported academic, operating and financial results for its third quarter fiscal 2023 ended March 31, 2023.
“Our third quarter results showcase our unwavering commitment to provide access to high-quality, post-secondary and graduate level programs to nearly 80,000 diverse students and working adults. We continue to make steady progress in strengthening our operational excellence, supporting our portfolio of programs and solutions in ways that benefit all our stakeholders, especially our students. One testament to these benefits are the first time residency attainment rates for American University of the Caribbean School of Medicine and Ross University School of Medicine students attaining 2023/24 residency positions which, at 97%, are among the highest-ever for these institutions,” said Steve Beard, president and CEO of Adtalem Global Education.
Beard continued, “With market leading scale and a commitment to broad access and quality outcomes, we are addressing critical talent shortages in healthcare for the benefit of communities nationwide. Our strategic vision, disciplined execution, results, and improving industry outlook positions Adtalem to drive long-term sustainable growth.”
Financial Highlights
Selected financial data for the three months ended March 31, 2023:
- Revenue of $369.1 million increased 1.3% compared with the prior year.
- Operating income was $59.4 million, compared with $32.9 million in the prior year; adjusted operating income was $73.0 million, a decrease of 4.3% compared with $76.2 million in the prior year. Operating margin was 16.1% compared with 9.0% in the prior year, and adjusted operating margin was 19.8% compared with 20.9% in the prior year.
- Net income was $45.9 million, compared with $347.7 million in the prior year; adjusted net income was $51.6 million, an increase of 24.7% compared with $41.4 million in the prior year.
- Diluted earnings per share decreased to $1.00 from $7.04 in the prior year; adjusted earnings per share increased to $1.13, up 34.5% compared with $0.84 in the prior year.
- Adjusted EBITDA was $85.9 million, a decrease of 6.8% compared with $92.2 million in the prior year; adjusted EBITDA margin was 23.3% compared with 25.3% in the prior year.
Selected financial data for the nine months ended March 31, 2023:
- Revenue of $1,086.2 million increased 6.4% compared with the prior year.
- Operating income was $128.6 million, compared with $30.8 million in the prior year; adjusted operating income was $217.6 million, an increase of 22.2% compared with $178.0 million in the prior year. Operating margin improved to 11.8% from 3.0% and adjusted operating margin increased to 20.0% from 17.4% in the prior year.
- Net income was $71.1 million, compared with $304.2 million in the prior year; adjusted net income was $146.9 million, an increase of 57.3% compared with $93.4 million in the prior year.
- Diluted earnings per share decreased to $1.54 from $6.15 in the prior year; adjusted earnings per share increased to $3.19, up 70.6% compared with $1.87 in the prior year.
- Adjusted EBITDA was $260.2 million, an increase of 16.2% compared with $223.9 million in the prior year; adjusted EBITDA margin was 24.0% compared with 21.9% in the prior year.
Business Highlights
- Chamberlain University’s pre-licensure Bachelor of Science in Nursing (BSN) is accredited by the Higher Learning Commission and Commission on Collegiate Nursing Education. The online option now has over 500 enrollees spread across 22 states in just 2.5 years since launch.
- First-time residency attainment rates for American University of the Caribbean School of Medicine and Ross University School of Medicine are at 97% for students attaining 2023/24 residency positions, among the highest-ever rates for the institutions, with 66% of those residents going into the all-important primary care specialty.
- More than 875 students and graduates from Ross University School of Medicine and American University of the Caribbean School of Medicine will enter U.S. residency programs in 2023, representing 29 specialties deployed across 45 states. 26% of the students and graduates entering residency are from underrepresented minorities.
- Walden University’s Master of Healthcare Administration program achieved Candidate Status from the Commission on Accreditation of Healthcare Management Education (CAHME).
- Chamberlain University and Ochsner Health, the largest healthcare system and private employer in the state of Louisiana, partnered to launch the new Heart of Healthcare Program which awards up to three years of partial tuition coverage to eligible new students enrolled in the three-year Bachelor of Science in Nursing (BSN) degree program at Chamberlain University College of Nursing at Ochsner Health campus in New Orleans.
Segment Highlights
Chamberlain
- Revenue in the third quarter increased 5.0% to $149.7 million from $142.6 million in the prior year.
- Segment operating income increased 7.1% to $39.6 million from $37.0 million in the prior year. Adjusted segment operating income increased 1.7% to $39.6 million from $38.9 million in the prior year.
- Adjusted EBITDA decreased 1.3% to $44.9 million compared with $45.5 million in the prior year.
- Total student enrollment increased 2.0% compared with the prior year, driven by growth in pre-licensure and post-licensure nursing programs as well as higher persistence across the segment.
Walden
- Revenue in the third quarter decreased 4.5% to $132.9 million from $139.1 million in the prior year.
- Segment operating income increased to $10.3 million compared with segment operating loss of $3.2 million in the prior year. Adjusted segment operating income decreased 4.7% to $24.6 million compared with $25.8 million in the prior year.
- Adjusted EBITDA decreased 4.9% to $27.8 million compared with $29.3 million in the prior year.
- Total student enrollment decreased 7.9% compared with the prior year, primarily attributable to declines in non-healthcare programs and to a lesser extent to healthcare programs partially offset by higher persistence across the segment. Elimination of off-cycle start dates adversely impacted year-over-year total enrollment growth by 2.2%.
Medical and Veterinary
- Revenue in the third quarter increased 4.6% to $86.5 million from $82.7 million in the prior year.
- Segment operating income increased by 21.4% to $16.5 million from $13.6 million in the prior year. Adjusted segment operating income decreased 6.9% to $16.9 million compared with $18.1 million in the prior year.
- Adjusted EBITDA decreased 8.4% to $20.7 million compared with $22.6 million in the prior year.
- Total student enrollment increased 1.6% compared with the prior year, driven by growth in both medical and veterinary programs.
Fiscal Year 2023 Outlook
Adtalem narrowed its guidance for fiscal year 2023 revenue to a range of $1,400 million to $1,450 million from a range of $1,380 million to $1,450 million, and adjusted earnings per share to a range of $4.05 to $4.20 from a range of $3.95 to $4.20.
Conference Call and Webcast Information
Adtalem will hold a conference call to discuss its fiscal 2023 third quarter results today at 4:30 p.m. CDT (5:30 p.m. EDT).
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: 13737030. 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: 13737030, or visit the Adtalem investor relations website at: https://investors.adtalem.com.
Investor Day
Adtalem will host an Investor Day on Tuesday, June 20, 2023, at 9:00 a.m. CDT at Adtalem’s Chamberlain University Chicago campus. Advanced registration will be required to attend the event in-person. To register, please visit Adtalem’s Investor Day website.
During the investor event, Adtalem’s executive leadership team will discuss the Company’s strategic priorities, growth strategy, and financial outlook. Investors and analysts will have the opportunity to participate in a Q&A session. In-person participants are invited to join the leadership team to tour the campus.
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 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 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, the future impacts of the COVID-19 pandemic, and the expected synergies from the Walden acquisition. 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) 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.
|
|
|||
|
|
Q3 2023 |
Q3 2022 |
% Change |
|
Adtalem Global Education Student Enrollments |
|
|
|
|
Total students(1) |
79,586 5 |
82,174 |
-3.1% |
|
|
|
|
|
|
|
|
|
|
|
Chamberlain University |
|
|
|
|
Total students |
34,847 |
34,158 |
2.0% |
|
Walden University(3) |
|
|
|
|
Walden University |
|
|
|
|
Total students |
39,427 |
42,788 |
-7.9% |
|
Walden University(3) |
|||
|
Medical & Veterinary |
|
|
|
|
Total students |
5,312 |
5,228 |
1.6% |
|
|
|
|
|
|
(1) Represents total students attending sessions during each institution’s most recent enrollment period in Q3 FY 2023 and Q3 FY 2022 |
|||
|
Adtalem Global Education Inc. Consolidated Balance Sheets (unaudited) (in thousands, except par value) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
March 31, |
|
June 30, |
|
March 31, |
||||||
|
|
|
2023 |
|
2022 |
|
2022 |
||||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|||
|
Current assets: |
|
|
|
|
|
|
|
|
|
|||
|
Cash and cash equivalents |
|
$ |
315,373 |
|
|
$ |
346,973 |
|
|
$ |
788,729 |
|
|
Restricted cash |
|
|
1,804 |
|
|
|
964 |
|
|
|
1,266 |
|
|
Accounts receivable, net |
|
|
113,284 |
|
|
|
81,635 |
|
|
|
96,064 |
|
|
Prepaid expenses and other current assets |
|
|
102,573 |
|
|
|
127,532 |
|
|
|
124,968 |
|
|
Current assets held for sale |
|
|
— |
|
|
|
— |
|
|
|
1,432 |
|
|
Total current assets |
|
|
533,034 |
|
|
|
557,104 |
|
|
|
1,012,459 |
|
|
Noncurrent assets: |
|
|
|
|
|
|
|
|
|
|||
|
Property and equipment, net |
|
|
252,797 |
|
|
|
289,926 |
|
|
|
294,538 |
|
|
Operating lease assets |
|
|
173,271 |
|
|
|
177,995 |
|
|
|
186,968 |
|
|
Deferred income taxes |
|
|
54,494 |
|
|
|
51,093 |
|
|
|
47,574 |
|
|
Intangible assets, net |
|
|
824,641 |
|
|
|
873,577 |
|
|
|
896,884 |
|
|
Goodwill |
|
|
961,262 |
|
|
|
961,262 |
|
|
|
961,262 |
|
|
Other assets, net |
|
|
67,618 |
|
|
|
119,283 |
|
|
|
120,145 |
|
|
Noncurrent assets held for sale |
|
|
— |
|
|
|
— |
|
|
|
93 |
|
|
Total noncurrent assets |
|
|
2,334,083 |
|
|
|
2,473,136 |
|
|
|
2,507,464 |
|
|
Total assets |
|
$ |
2,867,117 |
|
|
$ |
3,030,240 |
|
|
$ |
3,519,923 |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Liabilities and shareholders’ equity: |
|
|
|
|
|
|
|
|
|
|||
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|||
|
Accounts payable |
|
$ |
73,307 |
|
|
$ |
57,140 |
|
|
$ |
67,252 |
|
|
Accrued payroll and benefits |
|
|
56,023 |
|
|
|
67,792 |
|
|
|
57,510 |
|
|
Accrued liabilities |
|
|
86,691 |
|
|
|
98,124 |
|
|
|
176,921 |
|
|
Deferred revenue |
|
|
175,488 |
|
|
|
149,810 |
|
|
|
171,937 |
|
|
Current operating lease liabilities |
|
|
46,411 |
|
|
|
50,781 |
|
|
|
51,335 |
|
|
Current liabilities held for sale |
|
|
— |
|
|
|
— |
|
|
|
1,417 |
|
|
Total current liabilities |
|
|
437,920 |
|
|
|
423,647 |
|
|
|
526,372 |
|
|
Noncurrent liabilities: |
|
|
|
|
|
|
|
|
|
|||
|
Long-term debt |
|
|
694,429 |
|
|
|
838,908 |
|
|
|
1,225,360 |
|
|
Long-term operating lease liabilities |
|
|
164,185 |
|
|
|
177,045 |
|
|
|
188,955 |
|
|
Deferred income taxes |
|
|
27,237 |
|
|
|
25,554 |
|
|
|
25,862 |
|
|
Other liabilities |
|
|
32,961 |
|
|
|
73,700 |
|
|
|
74,380 |
|
|
Noncurrent liabilities held for sale |
|
|
— |
|
|
|
— |
|
|
|
41 |
|
|
Total noncurrent liabilities |
|
|
918,812 |
|
|
|
1,115,207 |
|
|
|
1,514,598 |
|
|
Total liabilities |
|
|
1,356,732 |
|
|
|
1,538,854 |
|
|
|
2,040,970 |
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|||
|
Shareholders’ equity: |
|
|
|
|
|
|
|
|
|
|||
|
Common stock, $0.01 par value per share, 200,000 shares authorized; 44,232, 45,177, and 45,138 shares outstanding as of March 31, 2023, June 30, 2022, and March 31, 2022, respectively |
|
|
822 |
|
|
|
818 |
|
|
|
818 |
|
|
Additional paid-in capital |
|
|
564,363 |
|
|
|
521,848 |
|
|
|
517,431 |
|
|
Retained earnings |
|
|
2,381,506 |
|
|
|
2,310,396 |
|
|
|
2,303,650 |
|
|
Accumulated other comprehensive loss |
|
|
(2,227 |
) |
|
|
(2,227 |
) |
|
|
(3,417 |
) |
|
Treasury stock, at cost, 37,939, 36,619, and 36,621 shares as of March 31, 2023, June 30, 2022, and March 31, 2022, respectively |
|
|
(1,434,079 |
) |
|
|
(1,339,449 |
) |
|
|
(1,339,529 |
) |
|
Total shareholders’ equity |
|
|
1,510,385 |
|
|
|
1,491,386 |
|
|
|
1,478,953 |
|
|
Total liabilities and shareholders’ equity |
|
$ |
2,867,117 |
|
|
$ |
3,030,240 |
|
|
$ |
3,519,923 |
|
| Adtalem Global Education Inc.
Consolidated Statements of Income (unaudited) (in thousands, except per share data) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
March 31, |
|
March 31, |
||||||||||||
|
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
Revenue |
|
$ |
369,082 |
|
|
$ |
364,281 |
|
|
$ |
1,086,185 |
|
|
$ |
1,021,195 |
|
|
Operating cost and expense: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cost of educational services |
|
|
165,820 |
|
|
|
166,027 |
|
|
|
484,768 |
|
|
|
498,497 |
|
|
Student services and administrative expense |
|
|
144,526 |
|
|
|
148,863 |
|
|
|
432,713 |
|
|
|
433,379 |
|
|
Restructuring expense |
|
|
1,278 |
|
|
|
10,518 |
|
|
|
17,706 |
|
|
|
16,999 |
|
|
Business acquisition and integration expense |
|
|
11,346 |
|
|
|
5,924 |
|
|
|
35,702 |
|
|
|
41,537 |
|
|
Gain on sale of assets |
|
|
(13,317 |
) |
|
|
— |
|
|
|
(13,317 |
) |
|
|
— |
|
|
Total operating cost and expense |
|
|
309,653 |
|
|
|
331,332 |
|
|
|
957,572 |
|
|
|
990,412 |
|
|
Operating income |
|
|
59,429 |
|
|
|
32,949 |
|
|
|
128,613 |
|
|
|
30,783 |
|
|
Interest expense |
|
|
(14,457 |
) |
|
|
(36,585 |
) |
|
|
(47,806 |
) |
|
|
(109,907 |
) |
|
Other income (expense), net |
|
|
3,980 |
|
|
|
(327 |
) |
|
|
3,301 |
|
|
|
2,435 |
|
|
Income (loss) from continuing operations before income taxes |
|
|
48,952 |
|
|
|
(3,963 |
) |
|
|
84,108 |
|
|
|
(76,689 |
) |
|
(Provision for) benefit from income taxes |
|
|
(389 |
) |
|
|
8,363 |
|
|
|
(5,906 |
) |
|
|
39,597 |
|
|
Income (loss) from continuing operations |
|
|
48,563 |
|
|
|
4,400 |
|
|
|
78,202 |
|
|
|
(37,092 |
) |
|
Discontinued operations: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
(Loss) income from discontinued operations before income taxes |
|
|
(3,993 |
) |
|
|
3,426 |
|
|
|
(6,734 |
) |
|
|
1,535 |
|
|
(Loss) gain on disposal of discontinued operations before income taxes |
|
|
(402 |
) |
|
|
474,003 |
|
|
|
(3,576 |
) |
|
|
474,003 |
|
|
Benefit from (provision for) income taxes |
|
|
1,701 |
|
|
|
(134,089 |
) |
|
|
3,222 |
|
|
|
(134,201 |
) |
|
(Loss) income from discontinued operations |
|
|
(2,694 |
) |
|
|
343,340 |
|
|
|
(7,088 |
) |
|
|
341,337 |
|
|
Net income |
|
$ |
45,869 |
|
|
$ |
347,740 |
|
|
$ |
71,114 |
|
|
$ |
304,245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Continuing operations |
|
$ |
1.08 |
|
|
$ |
0.09 |
|
|
$ |
1.73 |
|
|
$ |
(0.75 |
) |
|
Discontinued operations |
|
$ |
(0.06 |
) |
|
$ |
7.02 |
|
|
$ |
(0.16 |
) |
|
$ |
6.90 |
|
|
Total basic earnings per share |
|
$ |
1.02 |
|
|
$ |
7.11 |
|
|
$ |
1.57 |
|
|
$ |
6.15 |
|
|
Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Continuing operations |
|
$ |
1.06 |
|
|
$ |
0.09 |
|
|
$ |
1.70 |
|
|
$ |
(0.75 |
) |
|
Discontinued operations |
|
$ |
(0.06 |
) |
|
$ |
6.95 |
|
|
$ |
(0.15 |
) |
|
$ |
6.90 |
|
|
Total diluted earnings per share |
|
$ |
1.00 |
|
|
$ |
7.04 |
|
|
$ |
1.54 |
|
|
$ |
6.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic shares |
|
|
45,125 |
|
|
|
48,925 |
|
|
|
45,276 |
|
|
|
49,459 |
|
|
Diluted shares |
|
|
45,801 |
|
|
|
49,377 |
|
|
|
46,089 |
|
|
|
49,459 |
|
|
Adtalem Global Education Inc. Consolidated Statements of Cash Flows (unaudited) (in thousands) |
||||||||
|
|
|
|
|
|
|
|
||
|
|
|
Nine Months Ended |
||||||
|
|
|
March 31, |
||||||
|
|
|
2023 |
|
2022 |
||||
|
Operating activities: |
|
|
|
|
|
|
||
|
Net income |
|
$ |
71,114 |
|
|
$ |
304,245 |
|
|
Loss (income) from discontinued operations |
|
|
7,088 |
|
|
|
(341,337 |
) |
|
Income (loss) from continuing operations |
|
|
78,202 |
|
|
|
(37,092 |
) |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
|
Stock-based compensation expense |
|
|
10,908 |
|
|
|
18,604 |
|
|
Amortization and impairments to operating lease assets |
|
|
37,928 |
|
|
|
35,251 |
|
|
Depreciation |
|
|
31,618 |
|
|
|
33,471 |
|
|
Amortization of intangible assets |
|
|
48,936 |
|
|
|
73,967 |
|
|
Amortization and write-off of debt discount and issuance costs |
|
|
7,974 |
|
|
|
34,481 |
|
|
Provision for bad debts |
|
|
23,391 |
|
|
|
19,552 |
|
|
Deferred income taxes |
|
|
(1,718 |
) |
|
|
3,425 |
|
|
Loss on disposals, accelerated depreciation, and impairments to property and equipment |
|
|
3,999 |
|
|
|
2,274 |
|
|
Gain on extinguishment of debt |
|
|
(71 |
) |
|
|
— |
|
|
Loss on investments |
|
|
4,122 |
|
|
|
807 |
|
|
Gain on sale of assets |
|
|
(13,317 |
) |
|
|
— |
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
||
|
Accounts receivable |
|
|
(43,345 |
) |
|
|
(40,520 |
) |
|
Prepaid expenses and other current assets |
|
|
7,034 |
|
|
|
2,398 |
|
|
Accounts payable |
|
|
12,286 |
|
|
|
(5,737 |
) |
|
Accrued payroll and benefits |
|
|
(11,719 |
) |
|
|
(22,416 |
) |
|
Accrued liabilities |
|
|
(20,275 |
) |
|
|
(92,528 |
) |
|
Deferred revenue |
|
|
26,038 |
|
|
|
92,507 |
|
|
Operating lease liabilities |
|
|
(37,758 |
) |
|
|
(36,159 |
) |
|
Other assets and liabilities |
|
|
(14,412 |
) |
|
|
(23,514 |
) |
|
Net cash provided by operating activities-continuing operations |
|
|
149,821 |
|
|
|
58,771 |
|
|
Net cash used in operating activities-discontinued operations |
|
|
(404 |
) |
|
|
(6,915 |
) |
|
Net cash provided by operating activities |
|
|
149,417 |
|
|
|
51,856 |
|
|
Investing activities: |
|
|
|
|
|
|
||
|
Capital expenditures |
|
|
(19,056 |
) |
|
|
(22,249 |
) |
|
Proceeds from sale of marketable securities |
|
|
7,635 |
|
|
|
941 |
|
|
Purchases of marketable securities |
|
|
(1,508 |
) |
|
|
(1,315 |
) |
|
Proceeds from note receivable related to property sold |
|
|
46,800 |
|
|
|
— |
|
|
Payment for purchase of business, net of cash and restricted cash acquired |
|
|
— |
|
|
|
(1,488,054 |
) |
|
Cash received on DeVry University loan |
|
|
— |
|
|
|
10,000 |
|
|
Net cash provided by (used in) investing activities-continuing operations |
|
|
33,871 |
|
|
|
(1,500,677 |
) |
|
Net cash used in investing activities-discontinued operations |
|
|
— |
|
|
|
(3,287 |
) |
|
Proceeds from sale of business, net of cash transferred |
|
|
— |
|
|
|
962,652 |
|
|
Payment for working capital adjustment for sale of business |
|
|
(3,174 |
) |
|
|
— |
|
|
Net cash provided by (used in) investing activities |
|
|
30,697 |
|
|
|
(541,312 |
) |
|
Financing activities: |
|
|
|
|
|
|
||
|
Proceeds from exercise of stock options |
|
|
1,622 |
|
|
|
8,433 |
|
|
Employee taxes paid on withholding shares |
|
|
(4,214 |
) |
|
|
(2,727 |
) |
|
Proceeds from stock issued under Colleague Stock Purchase Plan |
|
|
451 |
|
|
|
400 |
|
|
Repurchases of common stock for treasury |
|
|
(44,710 |
) |
|
|
(120,000 |
) |
|
Payment on equity forward contract |
|
|
(13,162 |
) |
|
|
(30,000 |
) |
|
Proceeds from long-term debt |
|
|
— |
|
|
|
850,000 |
|
|
Repayments of long-term debt |
|
|
(150,861 |
) |
|
|
(687,667 |
) |
|
Payment of debt discount and issuance costs |
|
|
— |
|
|
|
(49,553 |
) |
|
Payment for purchase of redeemable noncontrolling interest of subsidiary |
|
|
— |
|
|
|
(1,790 |
) |
|
Net cash used in financing activities |
|
|
(210,874 |
) |
|
|
(32,904 |
) |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
— |
|
|
|
12 |
|
|
Net decrease in cash, cash equivalents and restricted cash |
|
|
(30,760 |
) |
|
|
(522,348 |
) |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
347,937 |
|
|
|
1,313,616 |
|
|
Cash, cash equivalents and restricted cash at end of period |
|
|
317,177 |
|
|
|
791,268 |
|
|
Less: cash, cash equivalents and restricted cash of discontinued operations at end of period |
|
|
— |
|
|
|
1,273 |
|
|
Cash, cash equivalents and restricted cash of continuing operations at end of period |
|
$ |
317,177 |
|
|
$ |
789,995 |
|
|
Non-cash investing and financing activities: |
|
|
|
|
|
|
||
|
Accrued capital expenditures |
|
$ |
10,474 |
|
|
$ |
5,408 |
|
|
Accrued liability for repurchases of common stock |
|
$ |
2,699 |
|
|
$ |
— |
|
|
Accrued excise tax on share repurchases |
|
$ |
361 |
|
|
$ |
— |
|
|
Settlement of financing liability with assets |
|
$ |
38,606 |
|
|
$ |
— |
|
|
Adtalem Global Education Inc. Segment Information (unaudited) (in thousands) |
|||||||||||||||||||||||||||||||
|
|
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||||||||||||||
|
|
|
March 31, |
|
March 31, |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Increase/(Decrease) |
|
|
|
|
|
|
|
|
Increase/(Decrease) |
|
|||||||||||||
|
|
|
2023 |
|
2022 |
|
$ |
|
% |
|
|
2023 |
|
2022 |
|
$ |
|
% |
|
|||||||||||||
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Chamberlain |
|
$ |
149,737 |
|
|
$ |
142,550 |
|
|
$ |
7,187 |
|
|
5.0 |
|
% |
|
$ |
426,538 |
|
|
$ |
417,310 |
|
|
$ |
9,228 |
|
2.2 |
% |
|
|
Walden |
|
|
132,874 |
|
|
|
139,081 |
|
|
|
(6,207 |
) |
|
(4.5 |
) |
% |
|
|
395,715 |
|
|
|
348,325 |
|
|
|
47,390 |
|
13.6 |
% |
|
|
Medical and Veterinary |
|
|
86,471 |
|
|
|
82,650 |
|
|
|
3,821 |
|
|
4.6 |
|
% |
|
|
263,932 |
|
|
|
255,560 |
|
|
|
8,372 |
|
3.3 |
% |
|
|
Total consolidated revenue |
|
$ |
369,082 |
|
|
$ |
364,281 |
|
|
$ |
4,801 |
|
|
1.3 |
|
% |
|
$ |
1,086,185 |
|
|
$ |
1,021,195 |
|
|
$ |
64,990 |
|
6.4 |
% |
|
|
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Chamberlain |
|
$ |
39,589 |
|
|
$ |
36,979 |
|
|
$ |
2,610 |
|
|
7.1 |
|
% |
|
$ |
99,002 |
|
|
$ |
83,290 |
|
|
$ |
15,712 |
|
18.9 |
% |
|
|
Walden |
|
|
10,343 |
|
|
|
(3,199 |
) |
|
|
13,542 |
|
|
NM |
|
|
|
|
26,071 |
|
|
|
(17,748 |
) |
|
|
43,819 |
|
NM |
|
|
|
Medical and Veterinary |
|
|
16,472 |
|
|
|
13,571 |
|
|
|
2,901 |
|
|
21.4 |
|
% |
|
|
49,172 |
|
|
|
45,400 |
|
|
|
3,772 |
|
8.3 |
% |
|
|
Home Office and Other |
|
|
(6,975 |
) |
|
|
(14,402 |
) |
|
|
7,427 |
|
|
51.6 |
|
% |
|
|
(45,632 |
) |
|
|
(80,159 |
) |
|
|
34,527 |
|
43.1 |
% |
|
|
Total consolidated operating income |
|
$ |
59,429 |
|
|
$ |
32,949 |
|
|
$ |
26,480 |
|
|
80.4 |
|
% |
|
$ |
128,613 |
|
|
$ |
30,783 |
|
|
$ |
97,830 |
|
317.8 |
% |
|
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 n
Contacts
Investor Contact
Jay Spitzer and Chandrika Nigam
[email protected]
+1 312-906-6600
Media Contact
Jacquelyn Manetakis
[email protected]
+1 630-303-4438
