|
|
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
|
|
|
|
|
|
|
|
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
|
Trading Symbol |
|
Name of each exchange on
which registered
|
|
|
|||
|
|
|
|
ADTALEM GLOBAL EDUCATION INC.
|
||
|
|
|
|
|
By:
|
/s/ Robert J. Phelan
|
|
|
|
Robert J. Phelan
|
|
|
|
Senior Vice President and Chief Financial Officer
(Principal Financial Officer)
|
|
News Release
|
|
|
Investor Contact
Chandrika Nigam
Chandrika.Nigam@Adtalem.com
|
|
|
|
|
Media Contact
|
|
Kelly Finelli
|
|
Kelly.Finelli@Adtalem.com
|
|
872-270-0230
|
•
|
Revenue of $365.6 million increased 58.8% compared with the prior year due to the acquisition of Walden
|
•
|
Diluted earnings per share was $7.09 compared with $0.48 in the
prior year; diluted earnings per share from continuing operations, excluding special items, was $0.87, compared with $0.60 in the prior year
|
•
|
Operating income was $33.3 million, compared with $36.0 million in the prior year; operating income, excluding special items, was $76.5
million, a 87.4% increase compared with the prior year
|
•
|
Net income attributable to Adtalem was $349.8 million compared with $24.7 million in the prior year, driven primarily by gain on the sale of the
Financial Services segment; net income from continuing operations, excluding special items, was $42.8 million, a 39.5% increase compared with the prior year
|
•
|
Adjusted EBITDA was $92.5 million, a 75.0% increase compared with the prior year
|
•
|
Revenue of $1,025.9 million increased 50.1% compared with the prior year due to the acquisition of Walden
|
•
|
Diluted earnings per share was $6.26 compared with $1.30 in the
prior year; diluted earnings per share from continuing operations, excluding special items, was $1.97, compared with $1.83 in the prior year
|
•
|
Operating income was $35.9 million, compared with $91.0 million in the prior year; operating income, excluding special items, was $183.2
million, a 47.2% increase compared with the prior year. On a sequential basis, operating margins excluding special items, increased for the second consecutive quarter
|
•
|
Net income attributable to Adtalem was $309.7 million compared with $67.9 million in the prior year, driven primarily by the gain on the sale of
the Financial Services segment; net income from continuing operations, excluding special items, was $98.2 million, a 3.1% increase compared with the prior year
|
•
|
Adjusted EBITDA was $229.1 million, a 43.0% increase compared with the prior year
|
•
|
Completed the divestiture of Financial Services segment to
a consortium of Wendel Group and Colibri Group in an all-cash transaction for $1 billion, thereby enhancing the company’s focus as a pure play, leading provider of talent to the healthcare industry
|
•
|
Utilized $770 million of net proceeds from the divestiture of
Financial Services segment to pay down debt, reducing debt by 46.7%
|
•
|
Repurchased 4.7 million shares of the company’s common stock for $150
million in an accelerated share buyback program using existing cash, reducing shares outstanding by 9.4%
|
•
|
Received authorization from the Adtalem board of directors for open
market share repurchases of up to $300 million of the company’s common stock over 36 months, demonstrating confidence in the company’s long-term growth
strategy
|
•
|
Achieved first-time residency attainment rates of 96%*
for American University of the Caribbean School of Medicine and 95%* for Ross University School of Medicine with more than 700 current and former graduates entering U.S. residency programs in 2022
*Residency attainment rates continued to improve to 96%
for AUC as of April 2022, and 95% for RUSM as of March 2022
|
-
|
The use of $770 million of net proceeds from the sale of the Financial Services segment towards repayment of debt, thereby reducing interest
expense
|
-
|
Accelerated share repurchase program for $150 million of the company’s common stock, which is expected to be completed by the second quarter of
fiscal 2023, reducing outstanding shares
|
3Q 2022
|
3Q 2021
|
% Change
|
||||||||||
Adtalem Global Education Student Enrollments
|
||||||||||||
Total students(1)
|
82,174
|
87,685
|
-6.3
|
%
|
||||||||
Chamberlain University
|
||||||||||||
Total students
|
34,158
|
35,702
|
-4.3
|
%
|
||||||||
Walden University(3)
|
||||||||||||
Walden University(2)
|
||||||||||||
Total students
|
42,788
|
46,691
|
-8.4
|
%
|
||||||||
Walden University(3)
|
||||||||||||
Medical & Veterinary
|
||||||||||||
Total students
|
5,228
|
5,292
|
-1.2
|
%
|
||||||||
1)
|
Represents total students attending sessions during each institution’s most recent enrollment period in 3Q 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.
|
March 31,
|
June 30,
|
March 31,
|
||||||||||
2022
|
2021
|
2021
|
||||||||||
Assets:
|
||||||||||||
Current assets:
|
||||||||||||
Cash and cash equivalents
|
$
|
788,729
|
$
|
476,377
|
$
|
461,605
|
||||||
Restricted cash
|
1,266
|
819,003
|
808,034
|
|||||||||
Accounts receivable, net
|
96,064
|
43,041
|
58,108
|
|||||||||
Prepaid expenses and other current assets
|
123,505
|
128,217
|
109,651
|
|||||||||
Current assets held for sale
|
1,432
|
48,315
|
60,127
|
|||||||||
Total current assets
|
1,010,996
|
1,514,953
|
1,497,525
|
|||||||||
Noncurrent assets:
|
||||||||||||
Property and equipment, net
|
294,538
|
283,692
|
278,864
|
|||||||||
Operating lease assets
|
186,968
|
167,365
|
162,557
|
|||||||||
Deferred income taxes
|
47,574
|
53,486
|
57,979
|
|||||||||
Intangible assets, net
|
896,884
|
137,500
|
137,500
|
|||||||||
Goodwill
|
961,262
|
310,210
|
310,210
|
|||||||||
Other assets, net
|
120,145
|
86,040
|
84,291
|
|||||||||
Noncurrent assets held for sale
|
93
|
531,597
|
532,859
|
|||||||||
Total noncurrent assets
|
2,507,464
|
1,569,890
|
1,564,260
|
|||||||||
Total assets
|
$
|
3,518,460
|
$
|
3,084,843
|
$
|
3,061,785
|
||||||
Liabilities and shareholders' equity:
|
||||||||||||
Current liabilities:
|
||||||||||||
Accounts payable
|
$
|
67,252
|
$
|
42,421
|
$
|
34,446
|
||||||
Accrued payroll and benefits
|
56,705
|
54,331
|
40,906
|
|||||||||
Accrued liabilities
|
176,921
|
126,344
|
108,277
|
|||||||||
Deferred revenue
|
167,576
|
68,807
|
87,308
|
|||||||||
Current operating lease liabilities
|
51,335
|
53,991
|
53,598
|
|||||||||
Current portion of long-term debt
|
—
|
3,000
|
3,000
|
|||||||||
Current liabilities held for sale
|
1,417
|
59,913
|
54,917
|
|||||||||
Total current liabilities
|
521,206
|
408,807
|
382,452
|
|||||||||
Noncurrent liabilities:
|
||||||||||||
Long-term debt
|
1,225,360
|
1,067,711
|
1,067,564
|
|||||||||
Long-term operating lease liabilities
|
188,955
|
167,066
|
163,251
|
|||||||||
Deferred income taxes
|
25,862
|
26,177
|
25,949
|
|||||||||
Other liabilities
|
65,729
|
78,705
|
80,225
|
|||||||||
Noncurrent liabilities held for sale
|
41
|
33,517
|
33,627
|
|||||||||
Total noncurrent liabilities
|
1,505,947
|
1,373,176
|
1,370,616
|
|||||||||
Total liabilities
|
2,027,153
|
1,781,983
|
1,753,068
|
|||||||||
Commitments and contingencies
|
||||||||||||
Redeemable noncontrolling interest
|
—
|
1,790
|
2,493
|
|||||||||
Shareholders' equity:
|
||||||||||||
Common stock, $0.01 par value per share, 200,000 shares authorized; 45,138, 49,253, and 49,700 shares outstanding as of March 31,
2022, June 30, 2021, and March 31, 2021, respectively
|
818
|
811
|
811
|
|||||||||
Additional paid-in capital
|
517,431
|
519,826
|
516,627
|
|||||||||
Retained earnings
|
2,314,796
|
2,005,105
|
1,995,465
|
|||||||||
Accumulated other comprehensive loss
|
(2,209
|
)
|
(7,365
|
)
|
(7,756
|
)
|
||||||
Treasury stock, at cost, 36,621, 31,846, and 31,366 shares as of March 31, 2022, June 30, 2021, and March 31, 2021, respectively
|
(1,339,529
|
)
|
(1,217,307
|
)
|
(1,198,923
|
)
|
||||||
Total shareholders' equity
|
1,491,307
|
1,301,070
|
1,306,224
|
|||||||||
Total liabilities and shareholders' equity
|
$
|
3,518,460
|
$
|
3,084,843
|
$
|
3,061,785
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Revenue
|
$
|
365,623
|
$
|
230,213
|
$
|
1,025,891
|
$
|
683,435
|
||||||||
Operating cost and expense:
|
||||||||||||||||
Cost of educational services
|
166,027
|
114,977
|
498,497
|
341,497
|
||||||||||||
Student services and administrative expense
|
149,890
|
74,412
|
432,923
|
217,502
|
||||||||||||
Restructuring expense
|
10,518
|
1,217
|
16,999
|
5,299
|
||||||||||||
Business acquisition and integration expense
|
5,924
|
3,646
|
41,537
|
28,161
|
||||||||||||
Total operating cost and expense
|
332,359
|
194,252
|
989,956
|
592,459
|
||||||||||||
Operating income
|
33,264
|
35,961
|
35,935
|
90,976
|
||||||||||||
Other income (expense):
|
||||||||||||||||
Interest and dividend income
|
1,045
|
910
|
2,784
|
3,133
|
||||||||||||
Interest expense
|
(36,585
|
)
|
(8,555
|
)
|
(109,907
|
)
|
(15,983
|
)
|
||||||||
Investment gain
|
—
|
479
|
—
|
2,002
|
||||||||||||
Net other expense
|
(35,540
|
)
|
(7,166
|
)
|
(107,123
|
)
|
(10,848
|
)
|
||||||||
(Loss) income from continuing operations before income taxes
|
(2,276
|
)
|
28,795
|
(71,188
|
)
|
80,128
|
||||||||||
Benefit from (provision for) income taxes
|
8,133
|
(4,557
|
)
|
38,897
|
(12,363
|
)
|
||||||||||
Income (loss) from continuing operations
|
5,857
|
24,238
|
(32,291
|
)
|
67,765
|
|||||||||||
Discontinued operations:
|
||||||||||||||||
Income from discontinued operations before income taxes
|
4,071
|
1,416
|
2,180
|
2,159
|
||||||||||||
Gain on disposal of discontinued operations before income taxes
|
474,003
|
—
|
474,003
|
—
|
||||||||||||
Provision for income taxes
|
(134,089
|
)
|
(1,104
|
)
|
(134,201
|
)
|
(2,386
|
)
|
||||||||
Income (loss) from discontinued operations
|
343,985
|
312
|
341,982
|
(227
|
)
|
|||||||||||
Net income
|
349,842
|
24,550
|
309,691
|
67,538
|
||||||||||||
Net loss attributable to redeemable noncontrolling interest from discontinued operations
|
—
|
102
|
—
|
359
|
||||||||||||
Net income attributable to Adtalem
|
$
|
349,842
|
$
|
24,652
|
$
|
309,691
|
$
|
67,897
|
||||||||
Amounts attributable to Adtalem:
|
||||||||||||||||
Net income (loss) from continuing operations
|
$
|
5,857
|
$
|
24,238
|
$
|
(32,291
|
)
|
$
|
67,765
|
|||||||
Net income from discontinued operations
|
343,985
|
414
|
341,982
|
132
|
||||||||||||
Net income attributable to Adtalem
|
$
|
349,842
|
$
|
24,652
|
$
|
309,691
|
$
|
67,897
|
||||||||
Earnings (loss) per share attributable to Adtalem:
|
||||||||||||||||
Basic:
|
||||||||||||||||
Continuing operations
|
$
|
0.12
|
$
|
0.48
|
$
|
(0.65
|
)
|
$
|
1.31
|
|||||||
Discontinued operations
|
$
|
7.03
|
$
|
0.01
|
$
|
6.91
|
$
|
0.00
|
||||||||
Total basic earnings per share
|
$
|
7.15
|
$
|
0.49
|
$
|
6.26
|
$
|
1.31
|
||||||||
Diluted:
|
||||||||||||||||
Continuing operations
|
$
|
0.12
|
$
|
0.47
|
$
|
(0.65
|
)
|
$
|
1.30
|
|||||||
Discontinued operations
|
$
|
6.97
|
$
|
0.01
|
$
|
6.91
|
$
|
0.00
|
||||||||
Total diluted earnings per share
|
$
|
7.09
|
$
|
0.48
|
$
|
6.26
|
$
|
1.30
|
||||||||
Weighted-average shares outstanding:
|
||||||||||||||||
Basic shares
|
48,925
|
50,658
|
49,459
|
51,799
|
||||||||||||
Diluted shares
|
49,377
|
51,111
|
49,459
|
52,101
|
Nine Months Ended
|
||||||||
March 31,
|
||||||||
2022
|
2021
|
|||||||
Operating activities:
|
||||||||
Net income
|
$
|
309,691
|
$
|
67,538
|
||||
(Income) loss from discontinued operations
|
(341,982
|
)
|
227
|
|||||
(Loss) income from continuing operations
|
(32,291
|
)
|
67,765
|
|||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Stock-based compensation expense
|
18,604
|
10,429
|
||||||
Amortization and adjustments to operating lease assets
|
35,251
|
39,346
|
||||||
Depreciation
|
33,471
|
25,325
|
||||||
Amortization of intangible assets
|
73,967
|
—
|
||||||
Amortization and write-off of debt discount and issuance costs
|
34,481
|
1,548
|
||||||
Provision for bad debts
|
19,552
|
7,978
|
||||||
Deferred income taxes
|
3,425
|
(4,558
|
)
|
|||||
Loss on disposals, accelerated depreciation, and adjustments to property and equipment
|
2,274
|
1,589
|
||||||
Realized and unrealized gain on investments
|
—
|
(2,002
|
)
|
|||||
Changes in assets and liabilities:
|
||||||||
Accounts receivable
|
(40,520
|
)
|
1,804
|
|||||
Prepaid expenses and other current assets
|
3,531
|
(7,297
|
)
|
|||||
Accounts payable
|
(5,737
|
)
|
(826
|
)
|
||||
Accrued payroll and benefits
|
(23,221
|
)
|
(884
|
)
|
||||
Accrued liabilities
|
(92,528
|
)
|
8,128
|
|||||
Deferred revenue
|
87,811
|
23,813
|
||||||
Operating lease liabilities
|
(36,159
|
)
|
(36,683
|
)
|
||||
Other assets and liabilities
|
(23,514
|
)
|
(9,799
|
)
|
||||
Net cash provided by operating activities-continuing operations
|
58,397
|
125,676
|
||||||
Net cash (used in) provided by operating activities-discontinued operations
|
(6,915
|
)
|
18,487
|
|||||
Net cash provided by operating activities
|
51,482
|
144,163
|
||||||
Investing activities:
|
||||||||
Capital expenditures
|
(22,249
|
)
|
(28,591
|
)
|
||||
Proceeds from sales of marketable securities
|
—
|
2,387
|
||||||
Purchases of marketable securities
|
—
|
(2,414
|
)
|
|||||
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
|
(1,500,303
|
)
|
(28,618
|
)
|
||||
Net cash used in investing activities-discontinued operations
|
(3,287
|
)
|
(6,253
|
)
|
||||
Proceeds from sale of business, net of cash transferred
|
962,652
|
—
|
||||||
Net cash used in investing activities
|
(540,938
|
)
|
(34,871
|
)
|
||||
Financing activities:
|
||||||||
Proceeds from exercise of stock options
|
8,433
|
889
|
||||||
Employee taxes paid on withholding shares
|
(2,727
|
)
|
(4,144
|
)
|
||||
Proceeds from stock issued under Colleague Stock Purchase Plan
|
400
|
160
|
||||||
Repurchases of common stock for treasury
|
(120,000
|
)
|
(81,568
|
)
|
||||
Payment for purchase of equity forward contract
|
(30,000
|
)
|
—
|
|||||
Proceeds from long-term debt
|
850,000
|
800,000
|
||||||
Repayments of long-term debt
|
(687,667
|
)
|
(2,250
|
)
|
||||
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
|
(32,904
|
)
|
695,040
|
|||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
12
|
343
|
||||||
Net (decrease) increase in cash, cash equivalents and restricted cash
|
(522,348
|
)
|
804,675
|
|||||
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
|
791,268
|
1,305,780
|
||||||
Less: cash, cash equivalents and restricted cash of discontinued operations at end of period
|
1,273
|
36,141
|
||||||
Cash, cash equivalents and restricted cash of continuing operations at end of period
|
$
|
789,995
|
$
|
1,269,639
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||||||||||
2022
|
2021
|
Increase
(Decrease) |
2022
|
2021
|
Increase
(Decrease) |
|||||||||||||||||||
Revenue:
|
||||||||||||||||||||||||
Chamberlain
|
$
|
142,550
|
$
|
146,313
|
(2.6
|
)%
|
$
|
417,310
|
$
|
422,054
|
(1.1
|
)%
|
||||||||||||
Walden
|
139,081
|
—
|
NM
|
348,325
|
—
|
NM
|
||||||||||||||||||
Medical and Veterinary
|
83,992
|
83,900
|
0.1
|
%
|
260,256
|
261,381
|
(0.4
|
)%
|
||||||||||||||||
Total consolidated revenue
|
$
|
365,623
|
$
|
230,213
|
58.8
|
%
|
$
|
1,025,891
|
$
|
683,435
|
50.1
|
%
|
||||||||||||
Operating income (loss):
|
||||||||||||||||||||||||
Chamberlain
|
$
|
36,979
|
$
|
36,107
|
2.4
|
%
|
$
|
83,290
|
$
|
98,758
|
(15.7
|
)%
|
||||||||||||
Walden
|
(2,854
|
)
|
—
|
NM
|
(16,943
|
)
|
—
|
NM
|
||||||||||||||||
Medical and Veterinary
|
14,913
|
14,977
|
(0.4
|
)%
|
50,096
|
56,626
|
(11.5
|
)%
|
||||||||||||||||
Home Office and Other
|
(15,774
|
)
|
(15,123
|
)
|
(4.3
|
)%
|
(80,508
|
)
|
(64,408
|
)
|
(25.0
|
)%
|
||||||||||||
Total consolidated operating income
|
$
|
33,264
|
$
|
35,961
|
(7.5
|
)%
|
$
|
35,935
|
$
|
90,976
|
(60.5
|
)%
|
•
|
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 amortization expense on acquired intangible assets.
|
•
|
Pre-acquisition interest expense and write-off of debt discount and issuance costs 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, including the after-tax gain on
the sale of these businesses, and EduPristine operations, in addition to costs related to DeVry University.
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||||||||||
2022
|
2021
|
Increase
(Decrease) |
2022
|
2021
|
Increase
(Decrease) |
|||||||||||||||||||
Chamberlain:
|
||||||||||||||||||||||||
Operating income (GAAP)
|
$
|
36,979
|
$
|
36,107
|
2.4
|
%
|
$
|
83,290
|
$
|
98,758
|
(15.7
|
)%
|
||||||||||||
Restructuring expense
|
1,931
|
—
|
2,266
|
—
|
||||||||||||||||||||
Operating income excluding special items (non-GAAP)
|
$
|
38,910
|
$
|
36,107
|
7.8
|
%
|
$
|
85,556
|
$
|
98,758
|
(13.4
|
)%
|
||||||||||||
Walden:
|
||||||||||||||||||||||||
Operating loss (GAAP)
|
$
|
(2,854
|
)
|
$
|
—
|
NM
|
$
|
(16,943
|
)
|
$
|
—
|
NM
|
||||||||||||
Deferred revenue adjustment
|
—
|
—
|
8,561
|
—
|
||||||||||||||||||||
Restructuring expense
|
2,225
|
—
|
4,016
|
—
|
||||||||||||||||||||
Walden intangible amortization expense
|
26,817
|
—
|
73,967
|
—
|
||||||||||||||||||||
Operating income excluding special items (non-GAAP)
|
$
|
26,188
|
$
|
—
|
NM
|
$
|
69,601
|
$
|
—
|
NM
|
||||||||||||||
Medical and Veterinary:
|
||||||||||||||||||||||||
Operating income (GAAP)
|
$
|
14,913
|
$
|
14,977
|
(0.4
|
)%
|
$
|
50,096
|
$
|
56,626
|
(11.5
|
)%
|
||||||||||||
Restructuring expense
|
4,569
|
—
|
4,757
|
—
|
||||||||||||||||||||
Operating income excluding special items (non-GAAP)
|
$
|
19,482
|
$
|
14,977
|
30.1
|
%
|
$
|
54,853
|
$
|
56,626
|
(3.1
|
)%
|
||||||||||||
Home Office and Other:
|
||||||||||||||||||||||||
Operating loss (GAAP)
|
$
|
(15,774
|
)
|
$
|
(15,123
|
)
|
(4.3
|
)%
|
$
|
(80,508
|
)
|
$
|
(64,408
|
)
|
(25.0
|
)%
|
||||||||
CEO transition costs
|
—
|
—
|
6,195
|
—
|
||||||||||||||||||||
Restructuring expense
|
1,793
|
1,217
|
5,960
|
5,299
|
||||||||||||||||||||
Business acquisition and integration expense
|
5,924
|
3,646
|
41,537
|
28,161
|
||||||||||||||||||||
Operating loss excluding special items (non-GAAP)
|
$
|
(8,057
|
)
|
$
|
(10,260
|
)
|
21.5
|
%
|
$
|
(26,816
|
)
|
$
|
(30,948
|
)
|
13.4
|
%
|
||||||||
Adtalem Global Education:
|
||||||||||||||||||||||||
Operating income (GAAP)
|
$
|
33,264
|
$
|
35,961
|
(7.5
|
)%
|
$
|
35,935
|
$
|
90,976
|
(60.5
|
)%
|
||||||||||||
Deferred revenue adjustment
|
—
|
—
|
8,561
|
—
|
||||||||||||||||||||
CEO transition costs
|
—
|
—
|
6,195
|
—
|
||||||||||||||||||||
Restructuring expense
|
10,518
|
1,217
|
16,999
|
5,299
|
||||||||||||||||||||
Business acquisition and integration expense
|
5,924
|
3,646
|
41,537
|
28,161
|
||||||||||||||||||||
Walden intangible amortization expense
|
26,817
|
—
|
73,967
|
—
|
||||||||||||||||||||
Operating income excluding special items (non-GAAP)
|
$
|
76,523
|
$
|
40,824
|
87.4
|
%
|
$
|
183,194
|
$
|
124,436
|
47.2
|
%
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||||||||||
2022
|
2021
|
Increase
(Decrease) |
2022
|
2021
|
Increase
(Decrease) |
|||||||||||||||||||
Chamberlain:
|
||||||||||||||||||||||||
Operating income (GAAP)
|
$
|
36,979
|
$
|
36,107
|
2.4
|
%
|
$
|
83,290
|
$
|
98,758
|
(15.7
|
)%
|
||||||||||||
Restructuring expense
|
1,931
|
—
|
2,266
|
—
|
||||||||||||||||||||
Depreciation
|
4,738
|
4,091
|
14,048
|
11,998
|
||||||||||||||||||||
Stock-based compensation
|
1,869
|
1,296
|
5,104
|
4,195
|
||||||||||||||||||||
Adjusted EBITDA (non-GAAP)
|
$
|
45,517
|
$
|
41,494
|
9.7
|
%
|
$
|
104,708
|
$
|
114,951
|
(8.9
|
)%
|
||||||||||||
Walden:
|
||||||||||||||||||||||||
Operating loss (GAAP)
|
$
|
(2,854
|
)
|
$
|
—
|
NM
|
$
|
(16,943
|
)
|
$
|
—
|
NM
|
||||||||||||
Deferred revenue adjustment
|
—
|
—
|
8,561
|
—
|
||||||||||||||||||||
Restructuring expense
|
2,225
|
—
|
4,016
|
—
|
||||||||||||||||||||
Walden intangible amortization expense
|
26,817
|
—
|
73,967
|
—
|
||||||||||||||||||||
Depreciation
|
2,573
|
—
|
6,801
|
—
|
||||||||||||||||||||
Stock-based compensation
|
841
|
—
|
2,308
|
—
|
||||||||||||||||||||
Adjusted EBITDA (non-GAAP)
|
$
|
29,602
|
$
|
—
|
NM
|
$
|
78,710
|
$
|
—
|
NM
|
||||||||||||||
Medical and Veterinary:
|
||||||||||||||||||||||||
Operating income (GAAP)
|
$
|
14,913
|
$
|
14,977
|
(0.4
|
)%
|
$
|
50,096
|
$
|
56,626
|
(11.5
|
)%
|
||||||||||||
Restructuring expense
|
4,569
|
—
|
4,757
|
—
|
||||||||||||||||||||
Depreciation
|
3,397
|
3,646
|
10,497
|
10,802
|
||||||||||||||||||||
Stock-based compensation
|
1,075
|
831
|
2,974
|
2,689
|
||||||||||||||||||||
Adjusted EBITDA (non-GAAP)
|
$
|
23,954
|
$
|
19,454
|
23.1
|
%
|
$
|
68,324
|
$
|
70,117
|
(2.6
|
)%
|
||||||||||||
Home Office and Other:
|
||||||||||||||||||||||||
Operating loss (GAAP)
|
$
|
(15,774
|
)
|
$
|
(15,123
|
)
|
(4.3
|
)%
|
$
|
(80,508
|
)
|
$
|
(64,408
|
)
|
(25.0
|
)%
|
||||||||
CEO transition costs
|
—
|
—
|
6,195
|
—
|
||||||||||||||||||||
Restructuring expense
|
1,793
|
1,217
|
5,960
|
5,299
|
||||||||||||||||||||
Business acquisition and integration expense
|
5,924
|
3,646
|
41,537
|
28,161
|
||||||||||||||||||||
Depreciation
|
633
|
866
|
2,125
|
2,525
|
||||||||||||||||||||
Stock-based compensation
|
888
|
1,335
|
2,023
|
3,545
|
||||||||||||||||||||
Adjusted EBITDA (non-GAAP)
|
$
|
(6,536
|
)
|
$
|
(8,059
|
)
|
18.9
|
%
|
$
|
(22,668
|
)
|
$
|
(24,878
|
)
|
8.9
|
%
|
||||||||
Adtalem Global Education:
|
||||||||||||||||||||||||
Net income attributable to Adtalem (GAAP)
|
$
|
349,842
|
$
|
24,652
|
1,319.1
|
%
|
$
|
309,691
|
$
|
67,897
|
356.1
|
%
|
||||||||||||
Net income from discontinued operations attributable to Adtalem
|
(343,985
|
)
|
(414
|
)
|
(341,982
|
)
|
(132
|
)
|
||||||||||||||||
Net other expense
|
35,540
|
7,166
|
107,123
|
10,848
|
||||||||||||||||||||
(Benefit from) provision for income taxes
|
(8,133
|
)
|
4,557
|
(38,897
|
)
|
12,363
|
||||||||||||||||||
Operating income (GAAP)
|
33,264
|
35,961
|
35,935
|
90,976
|
||||||||||||||||||||
Depreciation and amortization
|
38,158
|
8,603
|
107,438
|
25,325
|
||||||||||||||||||||
Stock-based compensation
|
4,673
|
3,462
|
12,409
|
10,429
|
||||||||||||||||||||
Deferred revenue adjustment
|
—
|
—
|
8,561
|
—
|
||||||||||||||||||||
CEO transition costs
|
—
|
—
|
6,195
|
—
|
||||||||||||||||||||
Restructuring expense
|
10,518
|
1,217
|
16,999
|
5,299
|
||||||||||||||||||||
Business acquisition and integration expense
|
5,924
|
3,646
|
41,537
|
28,161
|
||||||||||||||||||||
Adjusted EBITDA (non-GAAP)
|
$
|
92,537
|
$
|
52,889
|
75.0
|
%
|
$
|
229,074
|
$
|
160,190
|
43.0
|
%
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Net income attributable to Adtalem (GAAP)
|
$
|
349,842
|
$
|
24,652
|
$
|
309,691
|
$
|
67,897
|
||||||||
Deferred revenue adjustment
|
—
|
—
|
8,561
|
—
|
||||||||||||
CEO transition costs
|
—
|
—
|
6,195
|
—
|
||||||||||||
Restructuring expense
|
10,518
|
1,217
|
16,999
|
5,299
|
||||||||||||
Business acquisition and integration expense
|
5,924
|
3,646
|
41,537
|
28,161
|
||||||||||||
Walden intangible amortization expense
|
26,817
|
—
|
73,967
|
—
|
||||||||||||
Pre-acquisition interest expense and write-off of debt discount and issuance costs
|
12,471
|
4,951
|
44,105
|
4,996
|
||||||||||||
Income tax impact on non-GAAP adjustments (1)
|
(18,769
|
)
|
(3,365
|
)
|
(60,871
|
)
|
(10,972
|
)
|
||||||||
Net income from discontinued operations attributable to Adtalem
|
(343,985
|
)
|
(414
|
)
|
(341,982
|
)
|
(132
|
)
|
||||||||
Net income from continuing operations excluding special items (non-GAAP)
|
$
|
42,818
|
$
|
30,687
|
$
|
98,202
|
$
|
95,249
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Earnings per share, diluted (GAAP)
|
$
|
7.09
|
$
|
0.48
|
$
|
6.26
|
$
|
1.30
|
||||||||
Effect on diluted earnings per share:
|
||||||||||||||||
Deferred revenue adjustment
|
-
|
-
|
0.17
|
-
|
||||||||||||
CEO transition costs
|
-
|
-
|
0.12
|
-
|
||||||||||||
Restructuring expense
|
0.21
|
0.02
|
0.34
|
0.10
|
||||||||||||
Business acquisition and integration expense
|
0.12
|
0.07
|
0.83
|
0.54
|
||||||||||||
Walden intangible amortization expense
|
0.54
|
-
|
1.48
|
-
|
||||||||||||
Pre-acquisition interest expense and write-off of debt discount and issuance costs
|
0.25
|
0.10
|
0.88
|
0.10
|
||||||||||||
Income tax impact on non-GAAP adjustments (1)
|
(0.38
|
)
|
(0.07
|
)
|
(1.22
|
)
|
(0.21
|
)
|
||||||||
Net income from discontinued operations attributable to Adtalem
|
(6.97
|
)
|
(0.01
|
)
|
(6.91
|
)
|
(0.00
|
)
|
||||||||
Earnings per share from continuing operations excluding special items, diluted (non-GAAP)
|
$
|
0.87
|
$
|
0.60
|
$
|
1.97
|
$
|
1.83
|
||||||||
Diluted shares used in non-GAAP EPS calculation
|
49,377
|
51,111
|
49,872
|
52,101
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||||||||||
FY22
|
FY21
|
FY22
|
FY22
|
FY22
|
FY21
|
|||||||||||||||||||
Q3
|
Q3
|
Q3
|
Q2
|
Q1
|
Q4
|
|||||||||||||||||||
Net cash provided by operating activities-continuing operations (GAAP)
|
$
|
77,365
|
$
|
67,719
|
$
|
101,481
|
$
|
91,835
|
$
|
124,742
|
$
|
168,760
|
||||||||||||
Capital expenditures
|
(7,477
|
)
|
(8,887
|
)
|
(33,539
|
)
|
(34,949
|
)
|
(34,256
|
)
|
(39,881
|
)
|
||||||||||||
Free cash flow (non-GAAP)
|
$
|
69,888
|
$
|
58,832
|
$
|
67,942
|
$
|
56,886
|
$
|
90,486
|
$
|
128,879
|
|
Year Ended | |||
|
June 30, 2022 | |||
Expected earnings per share, diluted (GAAP)
|
|
$ | 6.76 to 6.96 | |
Expected effects on diluted earnings per share:
|
||||
Purchase accounting adjustment - deferred revenue
|
$
|
0.18
|
||
CEO transition costs
|
0.13
|
|||
Restructuring expense
|
0.35
|
|||
Business acquisition and integration costs
|
0.85
|
|||
Estimated purchase accounting adjustment - intangible amortization
|
1.99
|
|||
Pre-acquisition interest expense and write-off of debt discount and issuance costs
|
0.90
|
|||
Estimated incremental acquisition integration costs
|
0.14
|
|||
Estimated income tax impact on non-GAAP adjustments(1)
|
(1.14
|
)
|
||
Net income from discontinued operations attributable to Adtalem
|
(7.01
|
)
|
||
Expected adjusted earnings per share from continuing operations excluding special items, diluted (non-GAAP)(2)
|
|
$ | 3.15 to 3.35 | |
Diluted shares used in EPS calculation (in thousands)
|
48,800
|
|
Year Ended | |||
|
June 30, 2022 | |||
Expected revenue (GAAP)
|
$
|
1,341 to 1,381 | ||
Estimated incremental purchase accounting adjustment - deferred revenue
|
9
|
|||
Expected revenue excluding special items (non-GAAP)(3)
|
$
|
1,350 to 1,390 |
Three Months Ended
|
Nine Months Ended
|
Twelve Months Ended
|
||||||||||
June 30, 2021
|
March 31, 2022
|
March 31, 2022
|
||||||||||
Adtalem Global Education:
|
||||||||||||
Net income attributable to Adtalem (GAAP)
|
$
|
9,012
|
$
|
309,691
|
$
|
318,703
|
||||||
Net income from discontinued operations attributable to Adtalem
|
(6,447
|
)
|
(341,982
|
)
|
(348,429
|
)
|
||||||
Net other expense
|
23,785
|
107,123
|
130,908
|
|||||||||
(Benefit from) provision for income taxes
|
726
|
(38,897
|
)
|
(38,171
|
)
|
|||||||
Depreciation and amortization
|
8,563
|
107,438
|
116,001
|
|||||||||
Stock-based compensation
|
2,395
|
12,409
|
14,804
|
|||||||||
Deferred revenue adjustment
|
—
|
8,561
|
8,561
|
|||||||||
CEO transition costs
|
—
|
6,195
|
6,195
|
|||||||||
Restructuring expense
|
1,570
|
16,999
|
18,569
|
|||||||||
Business acquisition and integration expense
|
3,432
|
41,537
|
44,969
|
|||||||||
Adjusted EBITDA (non-GAAP)
|
$
|
43,036
|
$
|
229,074
|
$
|
272,110
|
||||||
|
March 31, 2022 | |||||||||||
Long-term debt
|
$
|
1,253,333
|
||||||||||
Cash and cash equivalents
|
788,729
|
|||||||||||
Net debt (non-GAAP)
|
$
|
464,604
|
||||||||||
Net leverage (non-GAAP)
|
1.7
|
x
|