● |
Revenue of $361.2 million increased 61.6% compared with the prior year due to the acquisition of Walden
|
● |
Diluted earnings per share was flat at $0.18, compared with the prior year; diluted earnings per share from continuing operations, excluding special items, was $1.31, compared with $0.48 in the prior year
|
● |
Operating income was $44.5 million, compared with $27.1 million in the prior year; operating income, excluding special items, was $88.1 million, an increase of 174.7% compared with the prior year. Operating margins excluding special items, increased to 24.4% from 14.4%
|
● |
Net income attributable to Adtalem was $8.0 million, compared with $9.0 million in the prior year; net income from continuing operations, excluding special items, was $59.9 million, an increase of 149.9% compared with the prior year
|
● |
Adjusted EBITDA was $103.2 million, an increase of 139.9% compared with the prior year. Adjusted EBITDA margins increased to 28.6% from 19.3%
|
● |
Gross debt was reduced by $394.1 million in the fourth quarter or by 31.4%
|
● |
Revenue of $1,387.1 million increased 53.0%, compared with the prior year due to the acquisition of Walden
|
● |
Diluted earnings per share was $6.57, compared with $1.49 in the prior year; diluted earnings per share from continuing operations, excluding special items, was $3.24, compared with $2.31 in the prior year
|
● |
Operating income was $80.5 million, compared with $118.1 million in the prior year; operating income, excluding special items, was $271.3 million, a 73.4% increase compared with the prior year. Operating margins, excluding special items, improved 230 basis points year over year to 19.6%
|
● |
Net income attributable to Adtalem was $317.7 million, compared with $76.9 million in the prior year; net income from continuing operations, excluding special items, was $158.2 million, an increase of 32.6% compared with the prior year
|
● |
Adjusted EBITDA was $332.3 million, an increase of 63.5%, compared with the prior year. Adjusted EBITDA margin increased to 24.0% from 22.4%
|
●
| Secured a grant of $1.2 million from the American Nurses Foundation for Chamberlain University's Practice-Ready, Specialty-Focused™ Program which is focused on preparing nurses to contribute to a variety of settings, such as perioperative services
|
●
| Graduated more than 750 medical school students at Adtalem's medical schools' 2022 commencement ceremonies of whom 74% will enter primary care specialties helping to combat the critical physician shortage. In 2022, 26% of Adtalem's medical school graduates are of a race or ethnicity underrepresented in medicine, of whom more than 100 identify as Black or African American
|
●
| Hosted a Nursing Summit bringing together nation's nursing and HBCU leaders and policy makers for advancing equity in healthcarethrough access and representation in nursing education
|
Q4 2022
|
Q4 2021
|
% Change
| ||||||||||
Adtalem Global Education Student Enrollments
| ||||||||||||
Total students(1) |
77,665
|
83,688
|
-7.2
|
%
| ||||||||
Chamberlain University
| ||||||||||||
Total students
|
32,891
|
34,930
|
-5.8
|
%
| ||||||||
Walden University(2) | ||||||||||||
Total students
|
39,470
|
43,632
|
-9.5
|
%
| ||||||||
Medical & Veterinary
| ||||||||||||
Total students
|
5,304
|
5,126
|
3.5
|
%
| ||||||||
1)
|
Represents total students attending sessions during each institution's most recent enrollment period in Q4 FY 2022.
|
2)
|
Prior year Walden enrollment figures are as calculated by Walden while controlled by Laureate Education, Inc., and are included here for comparative purposes only.
|
June 30,
| ||||||||
2022
|
2021
| |||||||
Assets:
| ||||||||
Current assets:
| ||||||||
Cash and cash equivalents
|
$
|
346,973
|
$
|
476,377
| ||||
Restricted cash
|
964
|
819,003
| ||||||
Accounts receivable, net
|
81,635
|
43,041
| ||||||
Prepaid expenses and other current assets
|
126,467
|
128,217
| ||||||
Current assets held for sale
|
-
|
48,315
| ||||||
Total current assets
|
556,039
|
1,514,953
| ||||||
Noncurrent assets:
| ||||||||
Property and equipment, net
|
289,926
|
283,692
| ||||||
Operating lease assets
|
177,995
|
167,365
| ||||||
Deferred income taxes
|
51,093
|
53,486
| ||||||
Intangible assets, net
|
873,577
|
137,500
| ||||||
Goodwill
|
961,262
|
310,210
| ||||||
Other assets, net
|
119,283
|
86,040
| ||||||
Noncurrent assets held for sale
|
-
|
531,597
| ||||||
Total noncurrent assets
|
2,473,136
|
1,569,890
| ||||||
Total assets
|
$
|
3,029,175
|
$
|
3,084,843
| ||||
Liabilities and shareholders' equity:
| ||||||||
Current liabilities:
| ||||||||
Accounts payable
|
$
|
57,140
|
$
|
42,421
| ||||
Accrued payroll and benefits
|
66,642
|
54,331
| ||||||
Accrued liabilities
|
98,124
|
126,344
| ||||||
Deferred revenue
|
144,840
|
68,807
| ||||||
Current operating lease liabilities
|
50,781
|
53,991
| ||||||
Current portion of long-term debt
|
-
|
3,000
| ||||||
Current liabilities held for sale
|
-
|
59,913
| ||||||
Total current liabilities
|
417,527
|
408,807
| ||||||
Noncurrent liabilities:
| ||||||||
Long-term debt
|
838,908
|
1,067,711
| ||||||
Long-term operating lease liabilities
|
177,045
|
167,066
| ||||||
Deferred income taxes
|
25,554
|
26,177
| ||||||
Other liabilities
|
65,074
|
78,705
| ||||||
Noncurrent liabilities held for sale
|
-
|
33,517
| ||||||
Total noncurrent liabilities
|
1,106,581
|
1,373,176
| ||||||
Total liabilities
|
1,524,108
|
1,781,983
| ||||||
Commitments and contingencies
| ||||||||
Redeemable noncontrolling interest
|
-
|
1,790
| ||||||
Shareholders' equity:
| ||||||||
Common stock, $0.01 par value per share, 200,000 shares authorized; 45,177 and 49,253 shares outstanding as of June 30, 2022 and June 30, 2021, respectively
|
818
|
811
| ||||||
Additional paid-in capital
|
521,848
|
519,826
| ||||||
Retained earnings
|
2,322,810
|
2,005,105
| ||||||
Accumulated other comprehensive loss
|
(960
|
)
|
(7,365
|
)
| ||||
Treasury stock, at cost, 36,619 and 31,846 shares as of June 30, 2022 and June 30, 2021, respectively
|
(1,339,449
|
)
|
(1,217,307
|
)
| ||||
Total shareholders' equity
|
1,505,067
|
1,301,070
| ||||||
Total liabilities and shareholders' equity
|
$
|
3,029,175
|
$
|
3,084,843
|
Three Months Ended
|
Year Ended
| |||||||||||||||
June 30,
|
June 30,
| |||||||||||||||
2022
|
2021
|
2022
|
2021
| |||||||||||||
Revenue
|
$
|
361,231
|
$
|
223,466
|
$
|
1,387,122
|
$
|
906,901
| ||||||||
Operating cost and expense:
| ||||||||||||||||
Cost of educational services
|
161,279
|
116,408
|
659,776
|
457,905
| ||||||||||||
Student services and administrative expense
|
135,133
|
74,980
|
568,056
|
292,482
| ||||||||||||
Restructuring expense
|
8,629
|
1,570
|
25,628
|
6,869
| ||||||||||||
Business acquisition and integration expense
|
11,661
|
3,432
|
53,198
|
31,593
| ||||||||||||
Total operating cost and expense
|
316,702
|
196,390
|
1,306,658
|
788,849
| ||||||||||||
Operating income
|
44,529
|
27,076
|
80,464
|
118,052
| ||||||||||||
Other income (expense):
| ||||||||||||||||
Interest and dividend income
|
1,036
|
961
|
3,820
|
4,094
| ||||||||||||
Interest expense
|
(19,441
|
)
|
(25,382
|
)
|
(129,348
|
)
|
(41,365
|
)
| ||||||||
Investment gain
|
-
|
636
|
-
|
2,638
| ||||||||||||
Net other expense
|
(18,405
|
)
|
(23,785
|
)
|
(125,528
|
)
|
(34,633
|
)
| ||||||||
Income (loss) from continuing operations before income taxes
|
26,124
|
3,291
|
(45,064
|
)
|
83,419
| |||||||||||
(Provision for) benefit from income taxes
|
(23,660
|
)
|
(726
|
)
|
15,237
|
(13,089
|
)
| |||||||||
Income (loss) from continuing operations
|
2,464
|
2,565
|
(29,827
|
)
|
70,330
| |||||||||||
Discontinued operations:
| ||||||||||||||||
(Loss) income from discontinued operations before income taxes
|
(2,575
|
)
|
7,326
|
(395
|
)
|
9,485
| ||||||||||
(Loss) gain on disposal of discontinued operations before income taxes
|
(520
|
)
|
-
|
473,483
|
-
| |||||||||||
Benefit from (provision for) income taxes
|
8,645
|
(954
|
)
|
(125,556
|
)
|
(3,340
|
)
| |||||||||
Income from discontinued operations
|
5,550
|
6,372
|
347,532
|
6,145
| ||||||||||||
Net income
|
8,014
|
8,937
|
317,705
|
76,475
| ||||||||||||
Net loss attributable to redeemable noncontrolling interest from discontinued operations
|
-
|
75
|
-
|
434
| ||||||||||||
Net income attributable to Adtalem
|
$
|
8,014
|
$
|
9,012
|
$
|
317,705
|
$
|
76,909
| ||||||||
Amounts attributable to Adtalem:
| ||||||||||||||||
Net income (loss) from continuing operations
|
$
|
2,464
|
$
|
2,565
|
$
|
(29,827
|
)
|
$
|
70,330
| |||||||
Net income from discontinued operations
|
5,550
|
6,447
|
347,532
|
6,579
| ||||||||||||
Net income attributable to Adtalem
|
$
|
8,014
|
$
|
9,012
|
$
|
317,705
|
$
|
76,909
| ||||||||
Earnings (loss) per share attributable to Adtalem:
| ||||||||||||||||
Basic:
| ||||||||||||||||
Continuing operations
|
$
|
0.05
|
$
|
0.05
|
$
|
(0.62
|
)
|
$
|
1.37
| |||||||
Discontinued operations
|
$
|
0.12
|
$
|
0.13
|
$
|
7.18
|
$
|
0.13
| ||||||||
Total basic earnings per share
|
$
|
0.18
|
$
|
0.18
|
$
|
6.57
|
$
|
1.50
| ||||||||
Diluted:
| ||||||||||||||||
Continuing operations
|
$
|
0.05
|
$
|
0.05
|
$
|
(0.62
|
)
|
$
|
1.36
| |||||||
Discontinued operations
|
$
|
0.12
|
$
|
0.13
|
$
|
7.18
|
$
|
0.13
| ||||||||
Total diluted earnings per share
|
$
|
0.18
|
$
|
0.18
|
$
|
6.57
|
$
|
1.49
| ||||||||
Weighted-average shares outstanding:
| ||||||||||||||||
Basic shares
|
45,162
|
49,884
|
48,388
|
51,322
| ||||||||||||
Diluted shares
|
45,758
|
50,326
|
48,388
|
51,645
|
(unaudited)
Year Ended June 30,
| ||||||||
2022
|
2021
| |||||||
Operating activities:
| ||||||||
Net income
|
$
|
317,705
|
$
|
76,475
| ||||
Income from discontinued operations
|
(347,532
|
)
|
(6,145
|
)
| ||||
(Loss) income from continuing operations
|
(29,827
|
)
|
70,330
| |||||
Adjustments to reconcile net income to net cash provided by operating activities:
| ||||||||
Stock-based compensation expense
|
22,611
|
12,824
| ||||||
Amortization and adjustments to operating lease assets
|
44,748
|
50,651
| ||||||
Depreciation
|
44,574
|
33,888
| ||||||
Amortization of intangible assets
|
97,274
|
-
| ||||||
Amortization and write-off of debt discount and issuance costs
|
42,654
|
2,657
| ||||||
Reclassification adjustment from other comprehensive income
|
-
|
(126
|
)
| |||||
Provision for bad debts
|
27,141
|
11,023
| ||||||
Deferred income taxes
|
(544
|
)
|
62
| |||||
Loss on disposals, accelerated depreciation, and adjustments to property and equipment
|
3,501
|
1,912
| ||||||
Gain on extinguishment of debt
|
(2,072
|
)
|
-
| |||||
Realized and unrealized gain on investments
|
-
|
(2,638
|
)
| |||||
Changes in assets and liabilities:
| ||||||||
Accounts receivable
|
(29,881
|
)
|
15,443
| |||||
Prepaid expenses and other current assets
|
569
|
(17,198
|
)
| |||||
Accounts payable
|
(15,724
|
)
|
5,666
| |||||
Accrued payroll and benefits
|
(13,268
|
)
|
12,552
| |||||
Accrued liabilities
|
(16,305
|
)
|
29,312
| |||||
Deferred revenue
|
65,075
|
5,312
| ||||||
Operating lease liabilities
|
(49,147
|
)
|
(48,588
|
)
| ||||
Other assets and liabilities
|
(27,554
|
)
|
(14,322
|
)
| ||||
Net cash provided by operating activities-continuing operations
|
163,825
|
168,760
| ||||||
Net cash (used in) provided by operating activities-discontinued operations
|
(153,401
|
)
|
23,439
| |||||
Net cash provided by operating activities
|
10,424
|
192,199
| ||||||
Investing activities:
| ||||||||
Capital expenditures
|
(31,054
|
)
|
(39,881
|
)
| ||||
Proceeds from sales of marketable securities
|
-
|
2,721
| ||||||
Purchases of marketable securities
|
-
|
(10,745
|
)
| |||||
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 used in investing activities-continuing operations
|
(1,509,108
|
)
|
(47,905
|
)
| ||||
Net cash used in investing activities-discontinued operations
|
(3,287
|
)
|
(8,783
|
)
| ||||
Proceeds from sale of business, net of cash transferred
|
960,768
|
-
| ||||||
Net cash used in investing activities
|
(551,627
|
)
|
(56,688
|
)
| ||||
Financing activities:
| ||||||||
Proceeds from exercise of stock options
|
8,879
|
1,457
| ||||||
Employee taxes paid on withholding shares
|
(2,834
|
)
|
(4,206
|
)
| ||||
Proceeds from stock issued under Colleague Stock Purchase Plan
|
535
|
262
| ||||||
Repurchases of common stock for treasury
|
(120,000
|
)
|
(100,000
|
)
| ||||
Payment for purchase of equity forward contract
|
(30,000
|
)
|
-
| |||||
Proceeds from long-term debt
|
850,000
|
800,000
| ||||||
Repayments of long-term debt
|
(1,079,713
|
)
|
(3,000
|
)
| ||||
Payment of debt discount and issuance costs
|
(49,553
|
)
|
(18,047
|
)
| ||||
Payment for purchase of redeemable noncontrolling interest of subsidiary
|
(1,790
|
)
|
-
| |||||
Net cash (used in) provided by financing activities
|
(424,476
|
)
|
676,466
| |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
-
|
534
| ||||||
Net (decrease) increase in cash, cash equivalents and restricted cash
|
(965,679
|
)
|
812,511
| |||||
Cash, cash equivalents and restricted cash at beginning of period
|
1,313,616
|
501,105
| ||||||
Cash, cash equivalents and restricted cash at end of period
|
347,937
|
1,313,616
| ||||||
Less: cash, cash equivalents and restricted cash of discontinued operations at end of period
|
-
|
18,236
| ||||||
Cash, cash equivalents and restricted cash of continuing operations at end of period
|
$
|
347,937
|
$
|
1,295,380
|
Three Months Ended
|
Year Ended
| |||||||||||||||||||||||||||||||
June 30,
|
June 30,
| |||||||||||||||||||||||||||||||
Increase/(Decrease)
|
Increase/(Decrease)
| |||||||||||||||||||||||||||||||
2022
|
2021
|
$
|
%
|
2022
|
2021
|
$
|
%
| |||||||||||||||||||||||||
Revenue:
| ||||||||||||||||||||||||||||||||
Chamberlain
|
$
|
140,226
|
$
|
141,760
|
$
|
(1,534
|
)
|
(1.1
|
)%
|
$
|
557,536
|
$
|
563,814
|
$
|
(6,278
|
)
|
(1.1
|
)%
| ||||||||||||||
Walden
|
137,068
|
-
|
137,068
|
NM
|
485,393
|
-
|
485,393
|
NM
| ||||||||||||||||||||||||
Medical and Veterinary
|
83,937
|
81,706
|
2,231
|
2.7
|
%
|
344,193
|
343,087
|
1,106
|
0.3
|
%
| ||||||||||||||||||||||
Total consolidated revenue
|
$
|
361,231
|
$
|
223,466
|
$
|
137,765
|
61.6
|
%
|
$
|
1,387,122
|
$
|
906,901
|
$
|
480,221
|
53.0
|
%
| ||||||||||||||||
Operating income (loss):
| ||||||||||||||||||||||||||||||||
Chamberlain
|
$
|
41,124
|
$
|
30,093
|
$
|
11,031
|
36.7
|
%
|
$
|
124,414
|
$
|
128,851
|
$
|
(4,437
|
)
|
(3.4
|
)%
| |||||||||||||||
Walden
|
12,787
|
-
|
12,787
|
NM
|
(4,156
|
)
|
-
|
(4,156
|
)
|
NM
| ||||||||||||||||||||||
Medical and Veterinary
|
14,541
|
11,226
|
3,315
|
29.5
|
%
|
64,637
|
67,852
|
(3,215
|
)
|
(4.7
|
)%
| |||||||||||||||||||||
Home Office and Other
|
(23,923
|
)
|
(14,243
|
)
|
(9,680
|
)
|
(68.0
|
)%
|
(104,431
|
)
|
(78,651
|
)
|
(25,780
|
)
|
(32.8
|
)%
| ||||||||||||||||
Total consolidated operating income
|
$
|
44,529
|
$
|
27,076
|
$
|
17,453
|
64.5
|
%
|
$
|
80,464
|
$
|
118,052
|
$
|
(37,588
|
)
|
(31.8
|
)%
|
●
|
Deferred revenue adjustment related to a revenue purchase accounting adjustment to record Walden's deferred revenue at fair value.
|
●
|
CEO transition costs related to acceleration of stock-based compensation expense.
|
●
|
Restructuring expense primarily related to plans to achieve synergies with the Walden acquisition and real estate consolidations at Medical and Veterinary and Adtalem's home office.
|
●
|
Business acquisition and integration expense include expenses related to the Walden acquisition.
|
●
|
Walden intangible amortization expense on acquired intangible assets.
|
●
|
Pre-acquisition interest expense, write-off of debt discount and issuance costs, and gain on extinguishment of debt related to financing arrangements in connection with the Walden acquisition and prepayment of debt.
|
●
|
Net income from discontinued operations attributable to Adtalem includes the operations of ACAMS, Becker, OCL, and EduPristine, including the after-tax gain on the sale of these businesses, in addition to costs related to DeVry University.
|
Three Months Ended
|
Year Ended
| |||||||||||||||||||||||
June 30,
|
June 30,
| |||||||||||||||||||||||
Increase/(Decrease)
|
Increase/(Decrease)
| |||||||||||||||||||||||
2022
|
2021
|
$
|
%
|
2022
|
2021
|
$
|
%
| |||||||||||||||||
Chamberlain:
| ||||||||||||||||||||||||
Operating income (GAAP)
|
$
|
41,124
|
$
|
30,093
|
$
|
11,031
|
36.7
|
%
|
$
|
124,414
|
$
|
128,851
|
$
|
(4,437)
|
(3.4)
|
%
| ||||||||
Restructuring expense
|
572
|
-
|
572
|
2,838
|
-
|
2,838
| ||||||||||||||||||
Operating income excluding special items (non-GAAP)
|
$
|
41,696
|
$
|
30,093
|
$
|
11,603
|
38.6
|
%
|
$
|
127,252
|
$
|
128,851
|
$
|
(1,599)
|
(1.2)
|
%
| ||||||||
Walden:
| ||||||||||||||||||||||||
Operating income (loss) (GAAP)
|
$
|
12,787
|
$
|
-
|
$
|
12,787
|
NM
|
$
|
(4,156)
|
$
|
-
|
$
|
(4,156)
|
NM
| ||||||||||
Deferred revenue adjustment
|
-
|
-
|
-
|
8,561
|
-
|
8,561
| ||||||||||||||||||
Restructuring expense
|
37
|
-
|
37
|
4,053
|
-
|
4,053
| ||||||||||||||||||
Walden intangible amortization expense
|
23,307
|
-
|
23,307
|
97,274
|
-
|
97,274
| ||||||||||||||||||
Operating income excluding special items (non-GAAP)
|
$
|
36,131
|
$
|
-
|
$
|
36,131
|
NM
|
$
|
105,732
|
$
|
-
|
$
|
105,732
|
NM
| ||||||||||
Medical and Veterinary:
| ||||||||||||||||||||||||
Operating income (GAAP)
|
$
|
14,541
|
$
|
11,226
|
$
|
3,315
|
29.5
|
%
|
$
|
64,637
|
$
|
67,852
|
$
|
(3,215)
|
(4.7)
|
%
| ||||||||
Restructuring expense
|
5,034
|
-
|
5,034
|
9,791
|
-
|
9,791
| ||||||||||||||||||
Operating income excluding special items (non-GAAP)
|
$
|
19,575
|
$
|
11,226
|
$
|
8,349
|
74.4
|
%
|
$
|
74,428
|
$
|
67,852
|
$
|
6,576
|
9.7
|
%
| ||||||||
Home Office and Other:
| ||||||||||||||||||||||||
Operating loss (GAAP)
|
$
|
(23,923)
|
$
|
(14,243)
|
$
|
(9,680)
|
(68.0)
|
%
|
$
|
(104,431)
|
$
|
(78,651)
|
$
|
(25,780)
|
(32.8)
|
%
| ||||||||
CEO transition costs
|
-
|
-
|
-
|
6,195
|
-
|
6,195
| ||||||||||||||||||
Restructuring expense
|
2,986
|
1,570
|
1,416
|
8,946
|
6,869
|
2,077
| ||||||||||||||||||
Business acquisition and integration expense
|
11,661
|
3,432
|
8,229
|
53,198
|
31,593
|
21,605
| ||||||||||||||||||
Operating loss excluding special items (non-GAAP)
|
$
|
(9,276)
|
$
|
(9,241)
|
$
|
(35)
|
(0.4)
|
%
|
$
|
(36,092)
|
$
|
(40,189)
|
$
|
4,097
|
10.2
|
%
| ||||||||
Adtalem Global Education:
| ||||||||||||||||||||||||
Operating income (GAAP)
|
$
|
44,529
|
$
|
27,076
|
$
|
17,453
|
64.5
|
%
|
$
|
80,464
|
$
|
118,052
|
$
|
(37,588)
|
(31.8)
|
%
| ||||||||
Deferred revenue adjustment
|
-
|
-
|
-
|
8,561
|
-
|
8,561
| ||||||||||||||||||
CEO transition costs
|
-
|
-
|
-
|
6,195
|
-
|
6,195
| ||||||||||||||||||
Restructuring expense
|
8,629
|
1,570
|
7,059
|
25,628
|
6,869
|
18,759
| ||||||||||||||||||
Business acquisition and integration expense
|
11,661
|
3,432
|
8,229
|
53,198
|
31,593
|
21,605
| ||||||||||||||||||
Walden intangible amortization expense
|
23,307
|
-
|
23,307
|
97,274
|
-
|
97,274
| ||||||||||||||||||
Operating income excluding special items (non-GAAP)
|
$
|
88,126
|
$
|
32,078
|
$
|
56,048
|
174.7
|
%
|
$
|
271,320
|
$
|
156,514
|
$
|
114,806
|
73.4
|
%
|
Three Months Ended
|
Year Ended
| |||||||||||||||||||||||
June 30,
|
June 30,
| |||||||||||||||||||||||
Increase/(Decrease)
|
Increase/(Decrease)
| |||||||||||||||||||||||
2022
|
2021
|
$
|
%
|
2022
|
2021
|
$
|
%
| |||||||||||||||||
Chamberlain:
| ||||||||||||||||||||||||
Operating income (GAAP)
|
$
|
41,124
|
$
|
30,093
|
$
|
11,031
|
36.7
|
%
|
$
|
124,414
|
$
|
128,851
|
$
|
(4,437)
|
(3.4)
|
%
| ||||||||
Restructuring expense
|
572
|
-
|
572
|
2,838
|
-
|
2,838
| ||||||||||||||||||
Depreciation
|
4,499
|
4,125
|
374
|
18,547
|
16,123
|
2,424
| ||||||||||||||||||
Stock-based compensation
|
1,603
|
986
|
617
|
6,707
|
5,181
|
1,526
| ||||||||||||||||||
Adjusted EBITDA (non-GAAP)
|
$
|
47,798
|
$
|
35,204
|
$
|
12,594
|
35.8
|
%
|
$
|
152,506
|
$
|
150,155
|
$
|
2,351
|
1.6
|
%
| ||||||||
Walden:
| ||||||||||||||||||||||||
Operating income (loss) (GAAP)
|
$
|
12,787
|
$
|
-
|
$
|
12,787
|
NM
|
$
|
(4,156)
|
$
|
-
|
$
|
(4,156)
|
NM
| ||||||||||
Deferred revenue adjustment
|
-
|
-
|
-
|
8,561
|
-
|
8,561
| ||||||||||||||||||
Restructuring expense
|
37
|
-
|
37
|
4,053
|
-
|
4,053
| ||||||||||||||||||
Walden intangible amortization expense
|
23,307
|
-
|
23,307
|
97,274
|
-
|
97,274
| ||||||||||||||||||
Depreciation
|
2,454
|
-
|
2,454
|
9,255
|
-
|
9,255
| ||||||||||||||||||
Stock-based compensation
|
721
|
-
|
721
|
3,029
|
-
|
3,029
| ||||||||||||||||||
Adjusted EBITDA (non-GAAP)
|
$
|
39,306
|
$
|
-
|
$
|
39,306
|
NM
|
$
|
118,016
|
$
|
-
|
$
|
118,016
|
NM
| ||||||||||
Medical and Veterinary:
| ||||||||||||||||||||||||
Operating income (GAAP)
|
$
|
14,541
|
$
|
11,226
|
$
|
3,315
|
29.5
|
%
|
$
|
64,637
|
$
|
67,852
|
$
|
(3,215)
|
(4.7)
|
%
| ||||||||
Restructuring expense
|
5,034
|
-
|
5,034
|
9,791
|
-
|
9,791
| ||||||||||||||||||
Depreciation
|
3,393
|
3,629
|
(236)
|
13,890
|
14,431
|
(541)
| ||||||||||||||||||
Stock-based compensation
|
922
|
632
|
290
|
3,896
|
3,321
|
575
| ||||||||||||||||||
Adjusted EBITDA (non-GAAP)
|
$
|
23,890
|
$
|
15,487
|
$
|
8,403
|
54.3
|
%
|
$
|
92,214
|
$
|
85,604
|
$
|
6,610
|
7.7
|
%
| ||||||||
Home Office and Other:
| ||||||||||||||||||||||||
Operating loss (GAAP)
|
$
|
(23,923)
|
$
|
(14,243)
|
$
|
(9,680)
|
(68.0)
|
%
|
$
|
(104,431)
|
$
|
(78,651)
|
$
|
(25,780)
|
(32.8)
|
%
| ||||||||
CEO transition costs
|
-
|
-
|
-
|
6,195
|
-
|
6,195
| ||||||||||||||||||
Restructuring expense
|
2,986
|
1,570
|
1,416
|
8,946
|
6,869
|
2,077
| ||||||||||||||||||
Business acquisition and integration expense
|
11,661
|
3,432
|
8,229
|
53,198
|
31,593
|
21,605
| ||||||||||||||||||
Depreciation
|
757
|
809
|
(52)
|
2,882
|
3,334
|
(452)
| ||||||||||||||||||
Stock-based compensation
|
761
|
777
|
(16)
|
2,784
|
4,322
|
(1,538)
| ||||||||||||||||||
Adjusted EBITDA (non-GAAP)
|
$
|
(7,758)
|
$
|
(7,655)
|
$
|
(103)
|
(1.3)
|
%
|
$
|
(30,426)
|
$
|
(32,533)
|
$
|
2,107
|
6.5
|
%
| ||||||||
Adtalem Global Education:
| ||||||||||||||||||||||||
Net income attributable to Adtalem (GAAP)
|
$
|
8,014
|
$
|
9,012
|
$
|
(998)
|
(11.1)
|
%
|
$
|
317,705
|
$
|
76,909
|
$
|
240,796
|
313.1
|
%
| ||||||||
Net income from discontinued operations attributable to Adtalem
|
(5,550)
|
(6,447)
|
897
|
(347,532)
|
(6,579)
|
(340,953)
| ||||||||||||||||||
Net other expense
|
18,405
|
23,785
|
(5,380)
|
125,528
|
34,633
|
90,895
| ||||||||||||||||||
Provision for (benefit from) income taxes
|
23,660
|
726
|
22,934
|
(15,237)
|
13,089
|
(28,326)
| ||||||||||||||||||
Operating income (GAAP)
|
44,529
|
27,076
|
17,453
|
80,464
|
118,052
|
(37,588)
| ||||||||||||||||||
Depreciation and amortization
|
34,410
|
8,563
|
25,847
|
141,848
|
33,888
|
107,960
| ||||||||||||||||||
Stock-based compensation
|
4,007
|
2,395
|
1,612
|
16,416
|
12,824
|
3,592
| ||||||||||||||||||
Deferred revenue adjustment
|
-
|
-
|
-
|
8,561
|
-
|
8,561
| ||||||||||||||||||
CEO transition costs
|
-
|
-
|
-
|
6,195
|
-
|
6,195
| ||||||||||||||||||
Restructuring expense
|
8,629
|
1,570
|
7,059
|
25,628
|
6,869
|
18,759
| ||||||||||||||||||
Business acquisition and integration expense
|
11,661
|
3,432
|
8,229
|
53,198
|
31,593
|
21,605
| ||||||||||||||||||
Adjusted EBITDA (non-GAAP)
|
$
|
103,236
|
$
|
43,036
|
$
|
60,200
|
139.9
|
%
|
$
|
332,310
|
$
|
203,226
|
$
|
129,084
|
63.5
|
%
|
Three Months Ended
|
Year Ended
| |||||||||||||||
June 30,
|
June 30,
| |||||||||||||||
2022
|
2021
|
2022
|
2021
| |||||||||||||
Net income attributable to Adtalem (GAAP)
|
$
|
8,014
|
$
|
9,012
|
$
|
317,705
|
$
|
76,909
| ||||||||
Deferred revenue adjustment
|
-
|
-
|
8,561
|
-
| ||||||||||||
CEO transition costs
|
-
|
-
|
6,195
|
-
| ||||||||||||
Restructuring expense
|
8,629
|
1,570
|
25,628
|
6,869
| ||||||||||||
Business acquisition and integration expense
|
11,661
|
3,432
|
53,198
|
31,593
| ||||||||||||
Walden intangible amortization expense
|
23,307
|
-
|
97,274
|
-
| ||||||||||||
Pre-acquisition interest expense, write-off of debt discount and issuance costs, and gain on extinguishment of debt
|
4,699
|
21,750
|
48,804
|
26,746
| ||||||||||||
Income tax impact on non-GAAP adjustments (1)
|
9,188
|
(5,325
|
)
|
(51,683
|
)
|
(16,297
|
)
| |||||||||
Net income from discontinued operations attributable to Adtalem
|
(5,550
|
)
|
(6,447
|
)
|
(347,532
|
)
|
(6,579
|
)
| ||||||||
Net income from continuing operations excluding special items (non-GAAP)
|
$
|
59,948
|
$
|
23,992
|
$
|
158,150
|
$
|
119,241
|
Three Months Ended
|
Year Ended
| |||||||||||||||
June 30,
|
June 30,
| |||||||||||||||
2022
|
2021
|
2022
|
2021
| |||||||||||||
Earnings per share, diluted (GAAP)
|
$
|
0.18
|
$
|
0.18
|
$
|
6.57
|
$
|
1.49
| ||||||||
Effect on diluted earnings per share:
| ||||||||||||||||
Deferred revenue adjustment
|
-
|
-
|
0.18
|
-
| ||||||||||||
CEO transition costs
|
-
|
-
|
0.13
|
-
| ||||||||||||
Restructuring expense
|
0.19
|
0.03
|
0.53
|
0.13
| ||||||||||||
Business acquisition and integration expense
|
0.25
|
0.07
|
1.09
|
0.61
| ||||||||||||
Walden intangible amortization expense
|
0.51
|
-
|
1.99
|
-
| ||||||||||||
Pre-acquisition interest expense, write-off of debt discount and issuance costs, and gain on extinguishment of debt
|
0.10
|
0.43
|
1.00
|
0.52
| ||||||||||||
Income tax impact on non-GAAP adjustments (1)
|
0.20
|
(0.11
|
)
|
(1.06
|
)
|
(0.32
|
)
| |||||||||
Net income from discontinued operations attributable to Adtalem
|
(0.12
|
)
|
(0.13
|
)
|
(7.18
|
)
|
(0.13
|
)
| ||||||||
Earnings per share from continuing operations excluding special items, diluted (non-GAAP)
|
$
|
1.31
|
$
|
0.48
|
$
|
3.24
|
$
|
2.31
| ||||||||
Diluted shares used in non-GAAP EPS calculation
|
45,758
|
50,326
|
48,804
|
51,645
|
Three Months Ended
|
Twelve Months Ended
| ||||||||||||||||||||
FY22
|
FY21
|
FY22
|
FY22
|
FY22
|
FY22
|
FY21
| |||||||||||||||
Q4
|
Q4
|
Q4
|
Q3
|
Q2
|
Q1
|
Q4
| |||||||||||||||
Net cash provided by operating activities-continuing operations (GAAP)
|
$
|
105,428
|
$
|
43,084
|
$
|
163,825
|
$
|
101,481
|
$
|
91,835
|
$
|
124,742
|
$
|
168,760
| |||||||
Capital expenditures
|
(8,805)
|
(11,290)
|
(31,054)
|
(33,539)
|
(34,949)
|
(34,256)
|
(39,881)
| ||||||||||||||
Free cash flow (non-GAAP)
|
$
|
96,623
|
$
|
31,794
|
$
|
132,771
|
$
|
67,942
|
$
|
56,886
|
$
|
90,486
|
$
|
128,879
|
Year Ended
| |||
June 30, 2023
| |||
Expected earnings per share, diluted (GAAP)
|
$
|
2.72 to 2.97
| |
Expected effects on diluted earnings per share:
| |||
Estimated purchase accounting adjustment - intangible amortization
|
1.33
| ||
Estimated incremental acquisition integration costs
|
0.33
| ||
Estimated income tax impact on non-GAAP adjustments(1)
|
(0.43)
| ||
Expected adjusted earnings per share from continuing operations excluding special items, diluted (non-GAAP)(2)
|
$
|
3.95 to 4.20
| |
Diluted shares used in EPS calculation
|
45,900
|
Year Ended
| ||||
June 30, 2022
| ||||
Adtalem Global Education:
| ||||
Net income attributable to Adtalem (GAAP)
|
$
|
317,705
| ||
Net income from discontinued operations attributable to Adtalem
|
(347,532
|
)
| ||
Net other expense
|
125,528
| |||
Benefit from income taxes
|
(15,237
|
)
| ||
Depreciation and amortization
|
141,848
| |||
Stock-based compensation
|
16,416
| |||
Deferred revenue adjustment
|
8,561
| |||
CEO transition costs
|
6,195
| |||
Restructuring expense
|
25,628
| |||
Business acquisition and integration expense
|
53,198
| |||
Adjusted EBITDA (non-GAAP)
|
$
|
332,310
| ||
June 30, 2022
| ||||
Long-term debt
|
$
|
859,215
| ||
Less: Cash and cash equivalents
|
(346,973
|
)
| ||
Net debt (non-GAAP)
|
$
|
512,242
| ||
Net leverage (non-GAAP)
|
1.5
|
x
|
Attachments
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Adtalem Global Education Inc. published this content on 11 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 August 2022 20:41:59 UTC.