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 +1 877-407-6184 (U.S.
participants) or +1 201-389-0877 (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 +1 877-660-6853 (U.S.) or +1 201-612-7415
(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
Investor.Relations@Adtalem.com +1 312-906-6600
Media Contact Britt Mitchell AdtalemMedia@Adtalem.com +1
872-270-0301
Adtalem Global Education (NYSE:ATGE)
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