Adtalem Global Education Second Quarter Fiscal Year 2025 Results; Guidance Raised

Total enrollment up 11.6% YoY

Revenue up 13.9% YoY

Diluted earnings per share $1.98; Adjusted EPS $1.81, growth of 47.2% YoY

Second quarter highlights

• Total student enrollment 91,264, up 11.6% year-over-year
• Revenue $447.7 million, up 13.9% year-over-year
• Chamberlain University achieved eighth straight quarter of total enrollment growth, up 11.5% year-over-year, highest total enrollment in university history
• Walden University achieved sixth straight quarter of total enrollment growth, up 13.2% year-over-year
• Strong momentum, GAAP net income $75.9 million and adjusted EBITDA $125.0 million, up 35.1% year-over-year
• Growth with Purpose strategy generating significant and sustainable returns

Capital allocation

• Repurchased $38 million of shares, $140 million remaining under $300 million Board authorized share repurchase program through January 2027
• Repaid $100 million of outstanding Term Loan B balance on Jan. 17, 2025
• Net leverage 1.1x as of Dec. 31, 2024

Fiscal year 2025 guidance

• Revenue $1,730 million to $1,760 million
• Adjusted earnings per share $6.10 to $6.30

Adtalem Global Education Inc. (NYSE: ATGE), the leading healthcare educator in the United States, today reported second quarter fiscal year 2025 results (ended Dec. 31, 2024), expanding the Company’s societal and healthcare impact at an industry-leading pace.

"Growth with Purpose, our operational excellence strategy, has delivered exceptional results—marked by six straight quarters of enrollment growth—while advancing our mission to develop skilled healthcare professionals," said Steve Beard, chairman and chief executive officer, Adtalem Global Education. "By optimizing the student experience and with a commitment to student outcomes, we're successfully scaling critical care education. These consistent and sustainable results give us confidence to raise our expectations for fiscal 2025."

Financial Highlights

Selected financial data for the three months ended Dec. 31, 2024:

• Revenue of $447.7 million increased 13.9% compared with the prior year
• Operating income of $103.9 million, compared with $58.6 million in the prior year; adjusted operating income of $101.4 million, compared with $75.6 million in the prior year
• Net income of $75.9 million, compared with $39.9 million in the prior year; adjusted net income of $69.4 million, compared with $50.3 million in the prior year
• Diluted earnings per share of $1.98, compared with $0.98 in the prior year; adjusted earnings per share of $1.81, compared with $1.23 in the prior year
• Adjusted EBITDA of $125.0 million, compared with $92.6 million in the prior year; adjusted EBITDA margin of 27.9%, compared with 23.5% in the prior year

Business Highlights

• Adtalem produced more graduates with Psychiatric-Mental Health Nurse Practitioner (MSN-PMHNP) degrees than the top 20 programs combined, according to the most recently published 2023 data from the American Association of Colleges of Nursing. Adtalem is addressing critical U.S. healthcare issues, as The National Institute for Health Care Management estimates that approximately 49% of Americans live in a mental health workforce shortage area. As of Dec. 31, 2024, Chamberlain University enrolled over 3,000 MSN-PMHNP students, with Walden University enrolling over 6,600. Further, Walden University currently has over 21,000 students enrolled in Social and Behavioral Sciences programs.
• Chamberlain University continues to build a robust pipeline of nurses through programs including its Bachelor of Science in Nursing (BSN) Online Option, which offers flexibility and experiential learning opportunities to students in 36 states. The program boasts over 2,500 current enrollees since launching four years ago and operates 44 clinical hub locations at partner healthcare sites.
• Walden University launched "Get the W," a new brand campaign that celebrates the wins that drive our students and graduates to make a meaningful impact in healthcare and beyond.
• Ross University School of Veterinary Medicine (RUSVM) hosted the West Indies Veterinary Conference 2024, a prominent event in the global veterinary community that brings together hundreds of veterinary professionals, including over 300 RUSVM alumni. The event featured continuing education, including lectures and master classes on topics ranging from wound care to business management.

Segment Highlights

Chamberlain

$ in millions

 

Three Months Ended

December 31,

 

 

2024

2023

% Change

Revenue

 

$181.0

$153.6

17.9%

Operating Income

 

$42.2

$29.6

42.5%

Adj. Operating Income

 

$42.3

$29.6

42.7%

Adj. EBITDA

 

$52.6

$36.9

42.5%

Total Students (1)

 

39,691

35,592

11.5%

• Total student enrollment increased 11.5% compared with the prior year, driven by continued growth in pre-licensure and post-licensure nursing programs.

Walden

$ in millions

 

Three Months Ended

December 31,

 

 

2024

2023

% Change

Revenue

 

$171.3

$146.8

16.7%

Operating Income

 

$48.9

$21.6

126.4%

Adj. Operating Income

 

$46.2

$30.2

53.1%

Adj. EBITDA

 

$52.1

$34.6

50.2%

Total Students (1)

 

46,399

40,971

13.2%

• Total student enrollment increased 13.2% compared with the prior year, driven by growth in healthcare and non-healthcare programs.

Medical and Veterinary

$ in millions

 

Three Months Ended

December 31,

 

 

2024

2023

% Change

Revenue

 

$95.4

$92.9

2.8%

Operating Income

 

$21.5

$22.0

(2.5)%

Adj. Operating Income

 

$21.5

$22.1

(2.6)%

Adj. EBITDA

 

$26.7

$26.4

1.3%

Total Students (1)

 

5,174

5,209

(0.7)%

• Medical and Veterinary schools do not have a new enrollment period starting in the second quarter fiscal year 2025. Second quarter fiscal year 2025 enrollment period is the same as first quarter fiscal year 2025 enrollment period and corresponding reported enrollment data.

Fiscal Year 2025 Outlook

Adtalem raises guidance for fiscal year 2025, with revenue in the range of $1,730 million to $1,760 million, approximately 9.0% to 11.0% growth year-over-year. Adjusted earnings per share to be in the range of $6.10 to $6.30, approximately 21.5% to 25.5% growth year-over-year.

Conference Call and Webcast Information

Adtalem will hold a conference call to discuss its second quarter fiscal year 2025 results today at 4:00 p.m. CT (5:00 p.m. ET).

The call can be accessed by dialing [phone] (U.S. participants) or [phone] (international participants) and stating “Adtalem earnings call” or by using conference ID: 13750710. 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 [phone] (U.S.) or [phone] (international), conference ID: 13750710, 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 90,000 students and supported by a strong community of approximately 350,000 alumni and nearly 10,000 dedicated employees. Visit 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 Q2 FY 2025 and Q2 FY 2024.

Adtalem Global Education Inc.

Consolidated Balance Sheets

(unaudited)

(in thousands)

 

 

 

 

 

 

 

 

 

December 31,

 

June 30,

 

 

2024

 

2024

Assets:

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

193,958

 

$

219,306

Restricted cash

 

 

1,461

 

 

 

1,896

 

Accounts and financing receivables, net

 

 

146,973

 

 

 

126,833

 

Prepaid expenses and other current assets

 

 

64,693

 

 

 

70,050

 

Total current assets

 

 

407,085

 

 

 

418,085

 

Noncurrent assets:

 

 

 

 

 

 

Property and equipment, net

 

 

245,878

 

 

 

248,524

 

Operating lease assets

 

 

188,800

 

 

 

176,755

 

Deferred income taxes

 

 

28,413

 

 

 

49,088

 

Intangible assets, net

 

 

771,084

 

 

 

776,694

 

Goodwill

 

 

961,262

 

 

 

961,262

 

Other assets, net

 

 

112,608

 

 

 

103,184

 

Assets held for sale

 

 

7,825

 

 

 

7,825

 

Total noncurrent assets

 

 

2,315,870

 

 

 

2,323,332

 

Total assets

 

$

2,722,955

 

 

$

2,741,417

 

Liabilities and shareholders' equity:

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

66,920

 

 

$

102,626

 

Accrued payroll and benefits

 

 

50,999

 

 

 

71,373

 

Accrued liabilities

 

 

62,479

 

 

 

96,957

 

Deferred revenue

 

 

171,523

 

 

 

185,272

 

Current operating lease liabilities

 

 

32,633

 

 

 

31,429

 

Total current liabilities

 

 

384,554

 

 

 

487,657

 

Noncurrent liabilities:

 

 

 

 

 

 

Long-term debt

 

 

649,924

 

 

 

648,712

 

Long-term operating lease liabilities

 

 

182,051

 

 

 

167,712

 

Deferred income taxes

 

 

32,367

 

 

 

29,526

 

Other liabilities

 

 

35,149

 

 

 

38,675

 

Total noncurrent liabilities

 

 

899,491

 

 

 

884,625

 

Total liabilities

 

 

1,284,045

 

 

 

1,372,282

 

Commitments and contingencies

 

 

 

 

 

 

Total shareholders' equity

 

 

1,438,910

 

 

 

1,369,135

 

Total liabilities and shareholders' equity

 

$

2,722,955

 

 

$

2,741,417

 

Adtalem Global Education Inc.

Consolidated Statements of Income

(unaudited)

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

December 31,

 

December 31,

 

 

2024

 

2023

 

2024

 

2023

Revenue

 

$

447,729

 

 

$

393,242

 

 

$

865,129

 

 

$

762,087

 

Operating cost and expense:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of educational services

 

 

186,636

 

 

 

172,069

 

 

 

372,631

 

 

 

340,687

 

Student services and administrative expense

 

 

156,901

 

 

 

155,584

 

 

 

315,974

 

 

 

321,679

 

Restructuring expense

 

 

322

 

 

 

68

 

 

 

2,416

 

 

 

744

 

Business integration expense

 

 

—

 

 

 

6,909

 

 

 

—

 

 

 

12,171

 

Total operating cost and expense

 

 

343,859

 

 

 

334,630

 

 

 

691,021

 

 

 

675,281

 

Operating income

 

 

103,870

 

 

 

58,612

 

 

 

174,108

 

 

 

86,806

 

Interest expense

 

 

(13,909

)

 

 

(16,693

)

 

 

(28,391

)

 

 

(32,350

)

Other income, net

 

 

2,235

 

 

 

3,563

 

 

 

4,881

 

 

 

5,777

 

Income from continuing operations before income taxes

 

 

92,196

 

 

 

45,482

 

 

 

150,598

 

 

 

60,233

 

Provision for income taxes

 

 

(21,020

)

 

 

(7,769

)

 

 

(33,177

)

 

 

(10,561

)

Income from continuing operations

 

 

71,176

 

 

 

37,713

 

 

 

117,421

 

 

 

49,672

 

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

Income from discontinued operations before income taxes

 

 

6,271

 

 

 

2,926

 

 

 

6,164

 

 

 

1,161

 

Provision for income taxes

 

 

(1,591

)

 

 

(748

)

 

 

(1,564

)

 

 

(296

)

Income from discontinued operations

 

 

4,680

 

 

 

2,178

 

 

 

4,600

 

 

 

865

 

Net income and comprehensive income

 

$

75,856

 

 

$

39,891

 

 

$

122,021

 

 

$

50,537

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

1.90

 

 

$

0.95

 

 

$

3.12

 

 

$

1.22

 

Discontinued operations

 

$

0.13

 

 

$

0.05

 

 

$

0.12

 

 

$

0.02

 

Total basic earnings per share

 

$

2.03

 

 

$

1.00

 

 

$

3.25

 

 

$

1.24

 

Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

1.85

 

 

$

0.92

 

 

$

3.03

 

 

$

1.20

 

Discontinued operations

 

$

0.12

 

 

$

0.05

 

 

$

0.12

 

 

$

0.02

 

Total diluted earnings per share

 

$

1.98

 

 

$

0.98

 

 

$

3.15

 

 

$

1.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic shares

 

 

37,435

 

 

 

39,872

 

 

 

37,578

 

 

 

40,636

 

Diluted shares

 

 

38,401

 

 

 

40,787

 

 

 

38,755

 

 

 

41,486

 

Adtalem Global Education Inc.

Consolidated Statements of Cash Flows

(unaudited)

(in thousands)

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

December 31,

 

 

2024

 

2023

Operating activities:

 

 

 

 

 

 

Net income

 

$

122,021

 

 

$

50,537

 

Income from discontinued operations

 

 

(4,600

)

 

 

(865

)

Income from continuing operations

 

 

117,421

 

 

 

49,672

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Stock-based compensation

 

 

20,918

 

 

 

13,505

 

Amortization and impairments to operating lease assets

 

 

14,092

 

 

 

17,340

 

Depreciation

 

 

19,993

 

 

 

19,381

 

Amortization of acquired intangible assets

 

 

5,610

 

 

 

20,010

 

Amortization of debt discount and issuance costs

 

 

2,226

 

 

 

2,310

 

Provision for bad debts

 

 

28,719

 

 

 

23,024

 

Deferred income taxes

 

 

23,516

 

 

 

(343

)

Loss on disposals of property and equipment

 

 

114

 

 

 

38

 

Gain on investments

 

 

(442

)

 

 

(575

)

Unrealized loss on assets held for sale

 

 

—

 

 

 

647

 

Changes in assets and liabilities:

 

 

 

 

 

 

Accounts and financing receivables

 

 

(46,493

)

 

 

(52,716

)

Prepaid expenses and other current assets

 

 

6,829

 

 

 

(2,143

)

Cloud computing implementation assets

 

 

(14,071

)

 

 

(11,314

)

Accounts payable

 

 

(34,588

)

 

 

9,755

 

Accrued payroll and benefits

 

 

(20,311

)

 

 

(6,073

)

Accrued liabilities

 

 

(29,066

)

 

 

25,130

 

Deferred revenue

 

 

(12,028

)

 

 

(13,540

)

Operating lease liabilities

 

 

(10,594

)

 

 

(20,441

)

Other assets and liabilities

 

 

(5,888

)

 

 

(1,314

)

Net cash provided by operating activities-continuing operations

 

 

65,957

 

 

 

72,353

 

Net cash provided by operating activities-discontinued operations

 

 

4,340

 

 

 

9,515

 

Net cash provided by operating activities

 

 

70,297

 

 

 

81,868

 

Investing activities:

 

 

 

 

 

 

Capital expenditures

 

 

(21,094

)

 

 

(19,612

)

Proceeds from sales of marketable securities

 

 

2,426

 

 

 

626

 

Purchases of marketable securities

 

 

(1,548

)

 

 

(498

)

Net cash used in investing activities

 

 

(20,216

)

 

 

(19,484

)

Financing activities:

 

 

 

 

 

 

Proceeds from exercise of stock options

 

 

9,833

 

 

 

15,313

 

Employee taxes paid on withholding shares

 

 

(12,198

)

 

 

(6,505

)

Proceeds from stock issued under Colleague Stock Purchase Plan

 

 

567

 

 

 

359

 

Repurchases of common stock for treasury

 

 

(74,066

)

 

 

(160,549

)

Proceeds from issuance of long-term debt

 

 

9,873

 

 

 

—

 

Repayments of long-term debt

 

 

(9,873

)

 

 

—

 

Net cash used in financing activities

 

 

(75,864

)

 

 

(151,382

)

Net decrease in cash, cash equivalents and restricted cash

 

 

(25,783

)

 

 

(88,998

)

Cash, cash equivalents and restricted cash at beginning of period

 

 

221,202

 

 

 

275,075

 

Cash, cash equivalents and restricted cash at end of period

 

$

195,419

 

 

$

186,077

 

Non-cash investing and financing activities:

 

 

 

 

 

 

Accrued capital expenditures

 

$

5,085

 

 

$

4,053

 

Accrued liability for repurchases of common stock

 

$

400

 

 

$

2,400

 

Accrued excise tax on share repurchases

 

$

301

 

 

$

2,358

 

Adtalem Global Education Inc.

Segment Information

(unaudited)

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

December 31,

 

December 31,

 

 

 

 

 

 

 

 

Increase/(Decrease)

 

 

 

 

 

 

 

Increase/(Decrease)

 

 

2024

 

2023

 

$

 

%

 

2024

 

2023

 

$

 

%

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chamberlain

 

$

180,986

 

 

$

153,553

 

 

$

27,433

 

 

17.9

%

 

$

348,916

 

 

$

296,149

 

 

$

52,767

 

 

17.8

%

Walden

 

 

171,306

 

 

 

146,808

 

 

 

24,498

 

 

16.7

%

 

 

332,819

 

 

 

288,416

 

 

 

44,403

 

 

15.4

%

Medical and Veterinary

 

 

95,437

 

 

 

92,881

 

 

 

2,556

 

 

2.8

%

 

 

183,394

 

 

 

177,522

 

 

 

5,872

 

 

3.3

%

Total consolidated revenue

 

$

447,729

 

 

$

393,242

 

 

$

54,487

 

 

13.9

%

 

$

865,129

 

 

$

762,087

 

 

$

103,042

 

 

13.5

%

Operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chamberlain

 

$

42,226

 

 

$

29,640

 

 

$

12,586

 

 

42.5

%

 

$

68,200

 

 

$

53,964

 

 

$

14,236

 

 

26.4

%

Walden

 

 

48,898

 

 

 

21,598

 

 

 

27,300

 

 

126.4

%

 

 

88,735

 

 

 

23,536

 

 

 

65,199

 

 

277.0

%

Medical and Veterinary

 

 

21,463

 

 

 

22,020

 

 

 

(557

)

 

(2.5

)%

 

 

36,134

 

 

 

36,383

 

 

 

(249

)

 

(0.7

)%

Home Office

 

 

(8,717

)

 

 

(14,646

)

 

 

5,929

 

 

40.5

%

 

 

(18,961

)

 

 

(27,077

)

 

 

8,116

 

 

30.0

%

Total consolidated operating income

 

$

103,870

 

 

$

58,612

 

 

$

45,258

 

 

77.2

%

 

$

174,108

 

 

$

86,806

 

 

$

87,302

 

 

100.6

%

Non-GAAP Financial Measures and Reconciliations

We believe that certain non-GAAP financial measures provide investors with useful supplemental information regarding the underlying business trends and performance of Adtalem’s ongoing operations as seen through the eyes of management and are useful for period-over-period comparisons. We use these supplemental non-GAAP financial measures internally in our assessment of performance and budgeting process. However, these non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The following are non-GAAP financial measures used in the subsequent GAAP to non-GAAP reconciliation tables:

Adjusted net income (most comparable GAAP measure: net income) – Measure of Adtalem’s net income adjusted for restructuring expense, business integration expense, amortization of acquired intangible assets, litigation reserve, debt modification costs, loss on assets held for sale, and income from discontinued operations.

Adjusted earnings per share (most comparable GAAP measure: diluted earnings per share) – Measure of Adtalem’s diluted earnings per share adjusted for restructuring expense, business integration expense, amortization of acquired intangible assets, litigation reserve, debt modification costs, loss on assets held for sale, and income from discontinued operations.

Adjusted operating income (most comparable GAAP measure: operating income) – Measure of Adtalem’s operating income adjusted for restructuring expense, business integration expense, amortization of acquired intangible assets, litigation reserve, debt modification costs, and loss on assets held for sale. This measure is applied on a consolidated and segment basis, depending on the context of the discussion.

Adjusted EBITDA (most comparable GAAP measure: net income) – Measure of Adtalem’s net income adjusted for income 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 integration expense, litigation reserve, loss on assets held for sale, and debt modification costs. 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 workforce reductions, costs to exit certain course offerings, and prior real estate consolidations at Adtalem’s home office. We do not include normal, recurring, cash operating expenses in our restructuring expense.
• Business integration expense include expenses related to the Walden acquisition and certain costs related to growth transformation initiatives. We do not include normal, recurring, cash operating expenses in our business integration expense.
• Amortization of acquired intangible assets.
• Amortization of cloud computing implementation assets.
• Reserves related to significant litigation, debt modification costs related to refinancing our Term Loan B loan, and loss on assets held for sale related to a fair value write-down on assets.
• Income from discontinued operations includes expense from ongoing litigation costs and settlements related to the DeVry University divestiture and the earn-outs we received.

Adtalem Global Education Inc.

Non-GAAP Operating Income by Segment

(unaudited)

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

December 31,

 

December 31,

 

 

 

 

 

 

 

 

Increase/(Decrease)

 

 

 

 

 

 

 

Increase/(Decrease)

 

 

2024

 

2023

 

$

 

%

 

2024

 

2023

 

$

 

%

Chamberlain:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (GAAP)

 

$

42,226

 

$

29,640

 

$

12,586

 

 

42.5

%

 

$

68,200

 

$

53,964

 

$

14,236

 

 

26.4

%

Restructuring expense

 

 

77

 

 

—

 

 

77

 

 

 

 

 

1,935

 

 

—

 

 

1,935

 

 

 

Adjusted operating income (non-GAAP)

 

$

42,303

 

$

29,640

 

$

12,663

 

 

42.7

%

 

$

70,135

 

$

53,964

 

$

16,171

 

 

30.0

%

Operating margin (GAAP)

 

 

23.3

%

 

19.3

%

 

 

 

 

 

 

19.5

%

 

18.2

%

 

 

 

 

Operating margin (non-GAAP)

 

 

23.4

%

 

19.3

%

 

 

 

 

 

 

20.1

%

 

18.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Walden:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (GAAP)

 

$

48,898

 

$

21,598

 

$

27,300

 

 

126.4

%

 

$

88,735

 

$

23,536

 

$

65,199

 

 

277.0

%

Restructuring expense

 

 

—

 

 

(776

)

 

776

 

 

 

 

 

—

 

 

(776

)

 

776

 

 

 

Amortization of acquired intangible assets

 

 

2,805

 

 

9,333

 

 

(6,528

)

 

 

 

 

5,610

 

 

20,010

 

 

(14,400

)

 

 

Litigation reserve

 

 

(5,550

)

 

—

 

 

(5,550

)

 

 

 

 

(5,550

)

 

18,500

 

 

(24,050

)

 

 

Adjusted operating income (non-GAAP)

 

$

46,153

 

$

30,155

 

$

15,998

 

 

53.1

%

 

$

88,795

 

$

61,270

 

$

27,525

 

 

44.9

%

Operating margin (GAAP)

 

 

28.5

%

 

14.7

%

 

 

 

 

 

 

26.7

%

 

8.2

%

 

 

 

 

Operating margin (non-GAAP)

 

 

26.9

%

 

20.5

%

 

 

 

 

 

 

26.7

%

 

21.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Medical and Veterinary:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (GAAP)

 

$

21,463

 

$

22,020

 

$

(557

)

 

(2.5

)%

 

$

36,134

 

$

36,383

 

$

(249

)

 

(0.7

)%

Restructuring expense

 

 

56

 

 

71

 

 

(15

)

 

 

 

 

115

 

 

185

 

 

(70

)

 

 

Adjusted operating income (non-GAAP)

 

$

21,519

 

$

22,091

 

$

(572

)

 

(2.6

)%

 

$

36,249

 

$

36,568

 

$

(319

)

 

(0.9

)%

Operating margin (GAAP)

 

 

22.5

%

 

23.7

%

 

 

 

 

 

 

19.7

%

 

20.5

%

 

 

 

 

Operating margin (non-GAAP)

 

 

22.5

%

 

23.8

%

 

 

 

 

 

 

19.8

%

 

20.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home Office:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss (GAAP)

 

$

(8,717

)

$

(14,646

)

$

5,929

 

 

40.5

%

 

$

(18,961

)

$

(27,077

)

$

8,116

 

 

30.0

%

Restructuring expense

 

 

189

 

 

773

 

 

(584

)

 

 

 

 

366

 

 

1,335

 

 

(969

)

 

 

Business integration expense

 

 

—

 

 

6,909

 

 

(6,909

)

 

 

 

 

—

 

 

12,171

 

 

(12,171

)

 

 

Loss on assets held for sale

 

 

—

 

 

647

 

 

(647

)

 

 

 

 

—

 

 

647

 

 

(647

)

 

 

Debt modification costs

 

 

—

 

 

—

 

 

—

 

 

 

 

 

712

 

 

—

 

 

712

 

 

 

Adjusted operating loss (non-GAAP)

 

$

(8,528

)

$

(6,317

)

$

(2,211

)

 

(35.0

)%

 

$

(17,883

)

$

(12,924

)

$

(4,959

)

 

(38.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adtalem Global Education:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (GAAP)

 

$

103,870

 

$

58,612

 

$

45,258

 

 

77.2

%

 

$

174,108

 

$

86,806

 

$

87,302

 

 

100.6

%

Restructuring expense

 

 

322

 

 

68

 

 

254

 

 

 

 

 

2,416

 

 

744

 

 

1,672

 

 

 

Business integration expense

 

 

—

 

 

6,909

 

 

(6,909

)

 

 

 

 

—

 

 

12,171

 

 

(12,171

)

 

 

Amortization of acquired intangible assets

 

 

2,805

 

 

9,333

 

 

(6,528

)

 

 

 

 

5,610

 

 

20,010

 

 

(14,400

)

 

 

Litigation reserve

 

 

(5,550

)

 

—

 

 

(5,550

)

 

 

 

 

(5,550

)

 

18,500

 

 

(24,050

)

 

 

Loss on assets held for sale

 

 

—

 

 

647

 

 

(647

)

 

 

 

 

—

 

 

647

 

 

(647

)

 

 

Debt modification costs

 

 

—

 

 

—

 

 

—

 

 

 

 

 

712

 

 

—

 

 

712

 

 

 

Adjusted operating income (non-GAAP)

 

$

101,447

 

$

75,569

 

$

25,878

 

 

34.2

%

 

$

177,296

 

$

138,878

 

$

38,418

 

 

27.7

%

Operating margin (GAAP)

 

 

23.2

%

 

14.9

%

 

 

 

 

 

 

20.1

%

 

11.4

%

 

 

 

 

Operating margin (non-GAAP)

 

 

22.7

%

 

19.2

%

 

 

 

 

 

 

20.5

%

 

18.2

%

 

 

 

 

Adtalem Global Education Inc.

Non-GAAP Adjusted EBITDA by Segment

(unaudited)

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

December 31,

 

December 31,

 

 

 

 

 

 

 

 

Increase/(Decrease)

 

 

 

 

 

 

 

Increase/(Decrease)

 

 

2024

 

2023

 

$

 

%

 

2024

 

2023

 

$

 

%

Chamberlain:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (GAAP)

 

$

42,226

 

$

29,640

 

$

12,586

 

 

42.5

%

 

$

68,200

 

$

53,964

 

$

14,236

 

 

26.4

%

Restructuring expense

 

 

77

 

 

—

 

 

77

 

 

 

 

 

1,935

 

 

—

 

 

1,935

 

 

 

Depreciation

 

 

5,466

 

 

4,786

 

 

680

 

 

 

 

 

10,834

 

 

8,902

 

 

1,932

 

 

 

Amortization of cloud computing implementation assets

 

 

815

 

 

376

 

 

439

 

 

 

 

 

1,467

 

 

576

 

 

891

 

 

 

Stock-based compensation

 

 

3,993

 

 

2,089

 

 

1,904

 

 

 

 

 

7,112

 

 

4,996

 

 

2,116

 

 

 

Adjusted EBITDA (non-GAAP)

 

$

52,577

 

$

36,891

 

$

15,686

 

 

42.5

%

 

$

89,548

 

$

68,438

 

$

21,110

 

 

30.8

%

Adjusted EBITDA margin (non-GAAP)

 

 

29.1

%

 

24.0

%

 

 

 

 

 

 

25.7

%

 

23.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Walden:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (GAAP)

 

$

48,898

 

$

21,598

 

$

27,300

 

 

126.4

%

 

$

88,735

 

$

23,536

 

$

65,199

 

 

277.0

%

Restructuring expense

 

 

—

 

 

(776

)

 

776

 

 

 

 

 

—

 

 

(776

)

 

776

 

 

 

Amortization of acquired intangible assets

 

 

2,805

 

 

9,333

 

 

(6,528

)

 

 

 

 

5,610

 

 

20,010

 

 

(14,400

)

 

 

Litigation reserve

 

 

(5,550

)

 

—

 

 

(5,550

)

 

 

 

 

(5,550

)

 

18,500

 

 

(24,050

)

 

 

Depreciation

 

 

1,795

 

 

1,926

 

 

(131

)

 

 

 

 

3,477

 

 

3,900

 

 

(423

)

 

 

Amortization of cloud computing implementation assets

 

 

778

 

 

379

 

 

399

 

 

 

 

 

1,479

 

 

567

 

 

912

 

 

 

Stock-based compensation

 

 

3,326

 

 

2,188

 

 

1,138

 

 

 

 

 

6,066

 

 

4,052

 

 

2,014

 

 

 

Adjusted EBITDA (non-GAAP)

 

$

52,052

 

$

34,648

 

$

17,404

 

 

50.2

%

 

$

99,817

 

$

69,789

 

$

30,028

 

 

43.0

%

Adjusted EBITDA margin (non-GAAP)

 

 

30.4

%

 

23.6

%

 

 

 

 

 

 

30.0

%

 

24.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Medical and Veterinary:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (GAAP)

 

$

21,463

 

$

22,020

 

$

(557

)

 

(2.5

)%

 

$

36,134

 

$

36,383

 

$

(249

)

 

(0.7

)%

Restructuring expense

 

 

56

 

 

71

 

 

(15

)

 

 

 

 

115

 

 

185

 

 

(70

)

 

 

Depreciation

 

 

2,744

 

 

2,972

 

 

(228

)

 

 

 

 

5,313

 

 

5,864

 

 

(551

)

 

 

Amortization of cloud computing implementation assets

 

 

315

 

 

138

 

 

177

 

 

 

 

 

598

 

 

190

 

 

408

 

 

 

Stock-based compensation

 

 

2,158

 

 

1,196

 

 

962

 

 

 

 

 

3,765

 

 

2,836

 

 

929

 

 

 

Adjusted EBITDA (non-GAAP)

 

$

26,736

 

$

26,397

 

$

339

 

 

1.3

%

 

$

45,925

 

$

45,458

 

$

467

 

 

1.0

%

Adjusted EBITDA margin (non-GAAP)

 

 

28.0

%

 

28.4

%

 

 

 

 

 

 

25.0

%

 

25.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home Office:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss (GAAP)

 

$

(8,717

)

$

(14,646

)

$

5,929

 

 

40.5

%

 

$

(18,961

)

$

(27,077

)

$

8,116

 

 

30.0

%

Restructuring expense

 

 

189

 

 

773

 

 

(584

)

 

 

 

 

366

 

 

1,335

 

 

(969

)

 

 

Business integration expense

 

 

—

 

 

6,909

 

 

(6,909

)

 

 

 

 

—

 

 

12,171

 

 

(12,171

)

 

 

Loss on assets held for sale

 

 

—

 

 

647

 

 

(647

)

 

 

 

 

—

 

 

647

 

 

(647

)

 

 

Debt modification costs

 

 

—

 

 

—

 

 

—

 

 

 

 

 

712

 

 

—

 

 

712

 

 

 

Depreciation

 

 

185

 

 

359

 

 

(174

)

 

 

 

 

369

 

 

715

 

 

(346

)

 

 

Stock-based compensation

 

 

1,990

 

 

577

 

 

1,413

 

 

 

 

 

3,975

 

 

1,621

 

 

2,354

 

 

 

Adjusted EBITDA (non-GAAP)

 

$

(6,353

)

$

(5,381

)

$

(972

)

 

(18.1

)%

 

$

(13,539

)

$

(10,588

)

$

(2,951

)

 

(27.9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adtalem Global Education:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

75,856

 

$

39,891

 

$

35,965

 

 

90.2

%

 

$

122,021

 

$

50,537

 

$

71,484

 

 

141.4

%

Income from discontinued operations

 

 

(4,680

)

 

(2,178

)

 

(2,502

)

 

 

 

 

(4,600

)

 

(865

)

 

(3,735

)

 

 

Interest expense

 

 

13,909

 

 

16,693

 

 

(2,784

)

 

 

 

 

28,391

 

 

32,350

 

 

(3,959

)

 

 

Other income, net

 

 

(2,235

)

 

(3,563

)

 

1,328

 

 

 

 

 

(4,881

)

 

(5,777

)

 

896

 

 

 

Provision for income taxes

 

 

21,020

 

 

7,769

 

 

13,251

 

 

 

 

 

33,177

 

 

10,561

 

 

22,616

 

 

 

Operating income (GAAP)

 

 

103,870

 

 

58,612

 

 

45,258

 

 

 

 

 

174,108

 

 

86,806

 

 

87,302

 

 

 

Depreciation and amortization

 

 

14,903

 

 

20,269

 

 

(5,366

)

 

 

 

 

29,147

 

 

40,724

 

 

(11,577

)

 

 

Stock-based compensation

 

 

11,467

 

 

6,050

 

 

5,417

 

 

 

 

 

20,918

 

 

13,505

 

 

7,413

 

 

 

Restructuring expense

 

 

322

 

 

68

 

 

254

 

 

 

 

 

2,416

 

 

744

 

 

1,672

 

 

 

Business integration expense

 

 

—

 

 

6,909

 

 

(6,909

)

 

 

 

 

—

 

 

12,171

 

 

(12,171

)

 

 

Litigation reserve

 

 

(5,550

)

 

—

 

 

(5,550

)

 

 

 

 

(5,550

)

 

18,500

 

 

(24,050

)

 

 

Loss on assets held for sale

 

 

—

 

 

647

 

 

(647

)

 

 

 

 

—

 

 

647

 

 

(647

)

 

 

Debt modification costs

 

 

—

 

 

—

 

 

—

 

 

 

 

 

712

 

 

—

 

 

712

 

 

 

Adjusted EBITDA (non-GAAP)

 

$

125,012

 

$

92,555

 

$

32,457

 

 

35.1

%

 

$

221,751

 

$

173,097

 

$

48,654

 

 

28.1

%

Adjusted EBITDA margin (non-GAAP)

 

 

27.9

%

 

23.5

%

 

 

 

 

 

 

25.6

%

 

22.7

%

 

 

 

 

Adtalem Global Education Inc.

Non-GAAP Earnings Disclosure

(unaudited)

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

December 31,

 

December 31,

 

 

2024

 

2023

 

2024

 

2023

Net income (GAAP)

 

$

75,856

 

 

$

39,891

 

 

$

122,021

 

 

$

50,537

 

Restructuring expense

 

 

322

 

 

 

68

 

 

 

2,416

 

 

 

744

 

Business integration expense

 

 

—

 

 

 

6,909

 

 

 

—

 

 

 

12,171

 

Amortization of acquired intangible assets

 

 

2,805

 

 

 

9,333

 

 

 

5,610

 

 

 

20,010

 

Litigation reserve, debt modification costs, and loss on assets held for sale

 

 

(5,550

)

 

 

647

 

 

 

(4,838

)

 

 

19,147

 

Income tax impact on non-GAAP adjustments (1)

 

 

645

 

 

 

(4,402

)

 

 

(687

)

 

 

(12,095

)

Income from discontinued operations

 

 

(4,680

)

 

 

(2,178

)

 

 

(4,600

)

 

 

(865

)

Adjusted net income (non-GAAP)

 

$

69,398

 

 

$

50,268

 

 

$

119,922

 

 

$

89,649

 

(1)

Represents the income tax impact of non-GAAP continuing operations adjustments that is recognized in our GAAP financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

December 31,

 

December 31,

 

 

2024

 

2023

 

2024

 

2023

Diluted earnings per share (GAAP)

 

$

1.98

 

 

$

0.98

 

 

$

3.15

 

 

$

1.22

 

Effect on diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring expense

 

 

0.01

 

 

 

0.00

 

 

 

0.06

 

 

 

0.02

 

Business integration expense

 

 

-

 

 

 

0.17

 

 

 

-

 

 

 

0.29

 

Amortization of acquired intangible assets

 

 

0.07

 

 

 

0.23

 

 

 

0.14

 

 

 

0.48

 

Litigation reserve, debt modification costs, and loss on assets held for sale

 

 

(0.14

)

 

 

0.02

 

 

 

(0.12

)

 

 

0.46

 

Income tax impact on non-GAAP adjustments (1)

 

 

0.02

 

 

 

(0.11

)

 

 

(0.02

)

 

 

(0.29

)

Income from discontinued operations

 

 

(0.12

)

 

 

(0.05

)

 

 

(0.12

)

 

 

(0.02

)

Adjusted earnings per share (non-GAAP)

 

$

1.81

 

 

$

1.23

 

 

$

3.09

 

 

$

2.16

 

Diluted shares used in non-GAAP EPS calculation

 

 

38,401

 

 

 

40,787

 

 

 

38,755

 

 

 

41,486

 

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

 

 

FY24

 

FY24

 

FY24

 

FY25

 

FY25

 

 

Q2

 

Q3

 

Q4

 

Q1

 

Q2

Net cash provided by (used in) operating activities-continuing operations (GAAP)

 

$

227,600

 

 

$

276,843

 

 

$

288,367

 

 

$

291,820

 

 

$

281,971

 

Capital expenditures

 

 

(38,713

)

 

 

(44,137

)

 

 

(48,893

)

 

 

(48,873

)

 

 

(50,375

)

Free cash flow (non-GAAP)

 

$

188,887

 

 

$

232,706

 

 

$

239,474

 

 

$

242,947

 

 

$

231,596

 

Adtalem Global Education Inc.

Non-GAAP Net Leverage Disclosure

(unaudited)

(in thousands)

 

 

 

 

 

 

Twelve Months Ended

 

 

December 31, 2024

Adtalem Global Education:

 

 

 

Net income (GAAP)

 

$

208,261

 

Income from discontinued operations

 

 

(2,799

)

Interest expense

 

 

59,700

 

Other income, net

 

 

(9,646

)

Provision for income taxes

 

 

48,840

 

Depreciation and amortization

 

 

66,875

 

Stock-based compensation

 

 

33,360

 

Restructuring expense

 

 

3,542

 

Business integration expense

 

 

22,044

 

Litigation reserve

 

 

(5,550

)

Debt modification costs

 

 

1,560

 

Adjusted EBITDA (non-GAAP)

 

$

426,187

 

 

 

 

 

 

 

December 31, 2024

Long-term debt

 

$

658,283

 

Less: Cash and cash equivalents

 

 

(193,958

)

Net debt (non-GAAP)

 

$

464,325

 

 

 

 

 

Net leverage (non-GAAP)

 

 

1.1 x

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250130322578/en/

Investor Contact Jay Spitzer [e-mail] [phone]

Media Contact Britt Mitchell [e-mail] [phone]