Adtalem Global Education Fiscal Third Quarter 2024 Results; Guidance Raised
CHICAGO , May 02 /Businesswire/ - Adtalem Global Education Inc. (NYSE: ATGE), the leading healthcare educator in the United States, today reported third quarter fiscal 2024 results (quarter ended March 31, 2024) reflecting robust operating performance through accelerated total enrollment growth and enhanced profitability.
“Our Growth with Purpose strategy, with its emphasis on operational excellence, continues to accelerate top- and bottom-line performance, permitting us to expand access to high-quality, in-demand programs,” said Steve Beard, president and chief executive officer, Adtalem Global Education.
“The momentum is built on strong enrollments, improved persistence and outstanding academic outcomes. With over 81,000 students graduated in the last three years, we are innately focused on our ability to have an outsized impact on U.S. healthcare.”
Financial Highlights
Selected financial data for the three months ended March 31, 2024:
Business Highlights
Segment Highlights
Chamberlain
$ in millions |
|
Three Months Ended Mar. 31, |
||
|
|
2024 |
2023 |
% Change |
Revenue |
|
$170.3 |
$149.7 |
13.8% |
Operating Income |
|
$43.3 |
$39.6 |
9.5% |
Adj. Operating Income |
|
$43.3 |
$39.6 |
9.5% |
Adj. EBITDA |
|
$50.5 |
$44.9 |
12.3% |
Total Students (2) |
|
37,985 |
34,847 |
9.0% |
Walden
$ in millions |
|
Three Months Ended Mar. 31, |
||
|
|
2024 |
2023 |
% Change |
Revenue |
|
$150.6 |
$132.9 |
13.3% |
Operating Income |
|
$23.6 |
$10.3 |
128.0% |
Adj. Operating Income |
|
$31.9 |
$24.6 |
29.4% |
Adj. EBITDA |
|
$35.9 |
$27.8 |
28.9% |
Total Students (2) |
|
42,751 |
39,427 |
8.4% |
Medical and Veterinary
$ in millions |
|
Three Months Ended Mar. 31, |
||
|
|
2024 |
2023 |
% Change |
Revenue |
|
$91.7 |
$86.5 |
6.1% |
Operating Income |
|
$22.8 |
$16.5 |
38.2% |
Adj. Operating Income |
|
$23.0 |
$16.9 |
35.9% |
Adj. EBITDA |
|
$27.0 |
$20.7 |
30.3% |
Total Students (2) |
|
5,073 |
5,312 |
(4.5)% |
Fiscal Year 2024 Outlook
Adtalem guidance for fiscal year 2024, raises revenue guidance to a range of $1,560 million to $1,580 million from $1,520 million to $1,560 million, and raises adjusted earnings per share to be in the range of $4.80 to $5.00 from $4.55 to $4.75.
Conference Call and Webcast Information
Adtalem will hold a conference call to discuss its fiscal third quarter 2024 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) stating “Adtalem earnings call” or use conference ID: 13745553. 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: 13745553, or visit the Adtalem investor relations website.
About Adtalem Global Education
Adtalem Global Education (NYSE: ATGE) is the No. 1 provider of healthcare education in the U.S.3 and a systemically important solution for preparing a diverse talent workforce that meets needs of the healthcare industry. We are redefining the education pathway into healthcare and meeting the evolving patient needs for a thriving society. Adtalem recognizes the potential in each individual and guides them to success while maintaining the top-tier standards and rigor needed to fill the workforce deficit, by creating more opportunities to connect practice-ready clinicians with employers at scale. We empower a diverse learner population to achieve their goals and make inspiring contributions to their communities with a family of institutions dedicated to nursing, medicine, veterinary medicine, social work and more. Our community is comprised of approximately 80,000 students, over 300,000 alumni and nearly 10,000 employees. Visit Adtalem.com for more information and follow us on LinkedIn, Instagram and Facebook.
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 can also be identified by words such as “future,” “believe,” “expect,” “anticipate,” “estimate,” “plan,” “intend,” “may,” “will,” “would,” “could,” “can,” “continue,” “preliminary,” “range,” and similar terms. These forward-looking statements are subject to risk and uncertainties that could cause actual results to differ materially from those described in the statements. These risk and uncertainties include the risk factors described in Item 1A. “Risk Factors” of our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) and our other filings with the SEC. These forward-looking statements are based on information available to us as of the date any such statements are made, and Adtalem assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized, except as required by law.
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 First-time residency attainment rate is the percent of students attaining a 2024-25 residency position out of all graduates or expected graduates in 2023-24 who were active applicants in the 2024 NRMP match or who attained a residency position outside the NRMP match. |
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2 Represents total students attending sessions during each institution’s most recent enrollment period in Q3 FY 2024 and Q3 FY 2023. |
|
3 Based on most recent reported year, 2022, according to U.S. government IPEDS database. |
Adtalem Global Education Inc. Consolidated Balance Sheets (unaudited) (in thousands) |
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|
|
|
|
|
|
|
|
|
March 31, |
|
June 30, |
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|
|
2024 |
|
2023 |
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Assets: |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
179,762 |
|
$ |
273,689 |
Restricted cash |
|
|
7,562 |
|
|
1,386 |
Accounts and financing receivables, net |
|
|
140,909 |
|
|
102,749 |
Prepaid expenses and other current assets |
|
|
59,401 |
|
|
100,715 |
Total current assets |
|
|
387,634 |
|
|
478,539 |
Noncurrent assets: |
|
|
|
|
|
|
Property and equipment, net |
|
|
272,792 |
|
|
258,522 |
Operating lease assets |
|
|
169,498 |
|
|
174,677 |
Deferred income taxes |
|
|
64,213 |
|
|
56,694 |
Intangible assets, net |
|
|
784,042 |
|
|
812,338 |
Goodwill |
|
|
961,262 |
|
|
961,262 |
Other assets, net |
|
|
67,768 |
|
|
68,509 |
Assets held for sale |
|
|
7,825 |
|
|
— |
Total noncurrent assets |
|
|
2,327,400 |
|
|
2,332,002 |
Total assets |
|
$ |
2,715,034 |
|
$ |
2,810,541 |
|
|
|
|
|
|
|
Liabilities and shareholders' equity: |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
92,198 |
|
$ |
81,812 |
Accrued payroll and benefits |
|
|
67,647 |
|
|
52,041 |
Accrued liabilities |
|
|
114,224 |
|
|
105,806 |
Deferred revenue |
|
|
202,566 |
|
|
153,871 |
Current operating lease liabilities |
|
|
32,475 |
|
|
37,673 |
Total current liabilities |
|
|
509,110 |
|
|
431,203 |
Noncurrent liabilities: |
|
|
|
|
|
|
Long-term debt |
|
|
648,106 |
|
|
695,077 |
Long-term operating lease liabilities |
|
|
159,717 |
|
|
163,441 |
Deferred income taxes |
|
|
28,937 |
|
|
26,068 |
Other liabilities |
|
|
48,201 |
|
|
37,416 |
Total noncurrent liabilities |
|
|
884,961 |
|
|
922,002 |
Total liabilities |
|
|
1,394,071 |
|
|
1,353,205 |
Commitments and contingencies |
|
|
|
|
|
|
Total shareholders' equity |
|
|
1,320,963 |
|
|
1,457,336 |
Total liabilities and shareholders' equity |
|
$ |
2,715,034 |
|
$ |
2,810,541 |
Adtalem Global Education Inc. Consolidated Statements of Income (unaudited)
(in thousands, except |