Adtalem Global Education Fiscal Third Quarter 2024 Results; Guidance Raised

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:

• Revenue of $412.7 million increased 11.8% compared with the prior year.
• Operating income was $61.7 million, compared with $59.4 million in the prior year; adjusted operating income was $89.8 million, compared with $73.0 million in the prior year.
• Net income was $36.8 million, compared with $45.9 million in the prior year; adjusted net income was $59.4 million, compared with $51.6 million in the prior year.
• Diluted earnings per share was $0.93, compared with $1.00 in the prior year; adjusted earnings per share was $1.50, compared with $1.13 in the prior year.
• Adjusted EBITDA was $107.1 million, compared with $85.9 million in the prior year; adjusted EBITDA margin was 25.9%, compared with 23.3% in the prior year.

Business Highlights

• American University of the Caribbean School of Medicine and Ross University School of Medicine achieved a combined 98% first-time residency attainment rate for 2023-2024 graduates¹, for the second straight year, placing more than 815 students and graduates into over 350 unique healthcare facilities spanning 44 states and territories. Over 500 will enter primary care residencies, poised to enhance healthcare outcomes for some of the more than 83 million Americans in underserved areas lacking adequate access to primary care. Of the more than 815 students and graduates, 189 identify as Black/African American or Hispanic, helping diversify the pipeline of physicians in the U.S. healthcare system where, based on 2021 data, Black Americans make up 13% of the population but only 6% of physicians, and Hispanics represent 19% of the population but only 7% of physicians.
• Scott Liles rejoined Adtalem on April 1 as president of our Medical and Veterinary segment. Liles most recently served as the chief executive officer and executive board member for the Association of Certified Anti-Money Laundering Specialists (ACAMS). Liles was instrumental in returning ACAMS to growth in preparation for Adtalem’s divestiture of its Financial Services segment and in establishing ACAMS as an independent company.
• Chamberlain University continues to expand its specialized nursing education that addresses areas of acute nursing shortages through its Practice Ready. Specialty Focused. model and a new partnership with the Emergency Nurses Association (ENA), offering in-depth introduction into emergency nursing. The ENA emergency nursing offering is in addition to partnerships with DaVita for nephrology, BrightStar Care for home healthcare as well as the Association of periOperative Registered Nurses for perioperative nursing. Chamberlain’s proprietary specialty model, created with a grant from the American Nurses Foundation, is now offered at all 23 Chamberlain campuses.
• Walden University experienced some of the strongest new enrollment growth in its history, offering flexibility to working adults through part-time, self-paced and Tempo Learning competency-based programs.
• Walden University celebrated over 5,500 graduates at its 70th anniversary commencement. College of Nursing and the College of Social and Behavioral Health degrees accounted for more than 60% of the degrees awarded, further showcasing Adtalem's commitment to delivering practice-ready professionals at scale to the U.S. healthcare system.

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%

• Total student enrollment increased 9.0% compared with the prior year, driven by continued growth in pre-licensure and post-licensure nursing programs as well as higher persistence.

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%

• Total student enrollment increased 8.4% compared with the prior year, driven by growth in healthcare programs and high persistence.

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)%

• Total student enrollment decreased 4.5% compared with the prior year, primarily driven by declines at the medical schools.

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 [phone] (U.S. participants) or [phone] (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 [phone] (U.S.) or [phone] (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.

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)
		March 31,			June 30,
		2024			2023
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 per share data)
		Three Months Ended								Nine Months Ended
		March 31,								March 31,
		2024				2023				2024				2023
Revenue		$	412,658			$	369,082			$	1,174,745			$	1,086,185
Operating cost and expense:
Cost of educational services			175,321				165,820				516,008				484,768
Student services and administrative expense			156,689				144,526				478,368				432,713
Restructuring expense			473				1,278				1,217				17,706
Business integration expense			18,450				11,346				30,621				35,702
Gain on sale of assets			—				(13,317	)			—				(13,317	)
Total operating cost and expense			350,933				309,653				1,026,214				957,572
Operating income			61,725				59,429				148,531				128,613
Interest expense			(16,560	)			(14,457	)			(48,910	)			(47,806	)
Other income, net			2,871				3,980				8,648				3,301
Income from continuing operations before income taxes			48,036				48,952				108,269				84,108
Provision for income taxes			(10,595	)			(389	)			(21,156	)			(5,906	)
Income from continuing operations			37,441				48,563				87,113				78,202
Discontinued operations:
(Loss) income from discontinued operations before income taxes			(832	)			(3,993	)			329				(6,734	)
Loss on disposal of discontinued operations before income taxes			—				(402	)			—				(3,576	)
Benefit from (provision for) income taxes			212				1,701				(84	)			3,222
(Loss) income from discontinued operations			(620	)			(2,694	)			245				(7,088	)
Net income and comprehensive income		$	36,821			$	45,869			$	87,358			$	71,114
Earnings (loss) per share:
Basic:
Continuing operations		$	0.97			$	1.08			$	2.18			$	1.73
Discontinued operations		$	(0.02	)		$	(0.06	)		$	0.01			$	(0.16	)
Total basic earnings per share		$	0.95			$	1.02			$	2.18			$	1.57
Diluted:
Continuing operations		$	0.94			$	1.06			$	2.13			$	1.70
Discontinued operations		$	(0.02	)		$	(0.06	)		$	0.01			$	(0.15	)
Total diluted earnings per share		$	0.93			$	1.00			$	2.14			$	1.54
Weighted-average shares outstanding:
Basic shares			38,713				45,125				40,000				45,276
Diluted shares			39,636				45,801				40,874				46,089

Adtalem Global Education Inc. Consolidated Statements of Cash Flows (unaudited) (in thousands)
		Nine Months Ended
		March 31,
		2024				2023
Operating activities:
Net income		$	87,358			$	71,114
(Income) loss from discontinued operations			(245	)			7,088
Income from continuing operations			87,113				78,202
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense			19,405				10,908
Amortization and impairments to operating lease assets			24,705				37,928
Depreciation			32,106				31,618
Amortization of intangible assets			28,296				48,936
Amortization and write-off of debt discount and issuance costs			4,550				7,974
Provision for bad debts			35,741				23,391
Deferred income taxes			(4,650	)			(1,718	)
Loss on disposals, accelerated depreciation, and impairments to property and equipment			50				3,999
Gain on extinguishment of debt			—				(71	)
(Gain) loss on investments			(1,281	)			4,122
Gain on sale of assets			—				(13,317	)
Unrealized loss on assets held for sale			647				—
Changes in assets and liabilities:
Accounts and financing receivables			(73,661	)			(56,477	)
Prepaid expenses and other current assets			(2,484	)			7,034
Accounts payable			10,841				12,286
Accrued payroll and benefits			15,671				(11,719	)
Accrued liabilities			39,748				(20,275	)
Deferred revenue			60,935				26,038
Operating lease liabilities			(28,448	)			(37,758	)
Other assets and liabilities			(2,475	)			(1,280	)
Net cash provided by operating activities-continuing operations			246,809				149,821
Net cash provided by (used in) operating activities-discontinued operations			8,396				(404	)
Net cash provided by operating activities			255,205				149,417
Investing activities:
Capital expenditures			(52,014	)			(19,056	)
Proceeds from sales of marketable securities			626				7,635
Purchases of marketable securities			(498	)			(1,508	)
Proceeds from note receivable related to property sold			—				46,800
Net cash (used in) provided by investing activities-continuing operations			(51,886	)			33,871
Payment for working capital adjustment for sale of business			—				(3,174	)
Net cash (used in) provided by investing activities			(51,886	)			30,697
Financing activities:
Proceeds from exercise of stock options			15,412				1,622
Employee taxes paid on withholding shares			(6,600	)			(4,214	)
Proceeds from stock issued under Colleague Stock Purchase Plan			581				451
Repurchases of common stock for treasury			(250,463	)			(44,710	)
Payment on equity forward contract			—				(13,162	)
Proceeds from issuance of long-term debt			1,896				—
Repayments of long-term debt			(51,896	)			(150,861	)
Net cash used in financing activities			(291,070	)			(210,874	)
Net decrease in cash, cash equivalents and restricted cash			(87,751	)			(30,760	)
Cash, cash equivalents and restricted cash at beginning of period			275,075				347,937
Cash, cash equivalents and restricted cash at end of period		$	187,324			$	317,177
Non-cash investing and financing activities:
Accrued capital expenditures		$	11,086			$	10,474
Accrued liability for repurchases of common stock		$	2,995			$	2,699
Accrued excise tax on share repurchases		$	3,257			$	361
Settlement of financing liability with assets		$	—			$	38,606

Adtalem Global Education Inc. Segment Information (unaudited) (in thousands)
		Three Months Ended															Nine Months Ended
		March 31,															March 31,
										Increase/(Decrease)															Increase/(Decrease)
		2024				2023				$				%			2024				2023				$				%
Revenue:
Chamberlain		$	170,338			$	149,737			$	20,601			13.8	%		$	466,487			$	426,538			$	39,949			9.4	%
Walden			150,607				132,874				17,733			13.3	%			439,023				395,715				43,308			10.9	%
Medical and Veterinary			91,713				86,471				5,242			6.1	%			269,235				263,932				5,303			2.0	%
Total consolidated revenue		$	412,658			$	369,082			$	43,576			11.8	%		$	1,174,745			$	1,086,185			$	88,560			8.2	%
Operating income (loss):
Chamberlain		$	43,349			$	39,589			$	3,760			9.5	%		$	97,313			$	99,002			$	(1,689	)		(1.7	)%
Walden			23,585				10,343				13,242			128.0	%			47,121				26,071				21,050			80.7	%
Medical and Veterinary			22,759				16,472				6,287			38.2	%			59,142				49,172				9,970			20.3	%
Home Office and Other			(27,968	)			(6,975	)			(20,993	)		(301.0	)%			(55,045	)			(45,632	)			(9,413	)		(20.6	)%
Total consolidated operating income		$	61,725			$	59,429			$	2,296			3.9	%		$	148,531			$	128,613			$	19,918			15.5	%

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, intangible amortization expense, gain on sale of assets, write-off of debt discount and issuance costs, gain on extinguishment of debt, litigation reserve, investment impairment, loss on assets held for sale, debt modification costs, net tax benefit related to a valuation allowance release, and loss (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, intangible amortization expense, gain on sale of assets, write-off of debt discount and issuance costs, gain on extinguishment of debt, litigation reserve, investment impairment, loss on assets held for sale, debt modification costs, net tax benefit related to a valuation allowance release, and loss (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, intangible amortization expense, litigation reserve, loss on assets held for sale, debt modification costs, and gain on sale of assets. 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 loss (income) from discontinued operations, interest expense, other income, net, provision for income taxes, depreciation and amortization, stock-based compensation, restructuring expense, business integration expense, litigation reserve, loss on assets held for sale, debt modification costs, and gain on sale of assets. 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 real estate consolidations at Walden, Medical and Veterinary, and 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.
• Intangible amortization expense on acquired intangible assets.
• Gain on sale of Adtalem’s Chicago, Illinois, campus facility.
• Write-off of debt discount and issuance costs and gain on extinguishment of debt related to prepayments of debt, reserves related to significant litigation, impairment of an equity investment, loss on assets held for sale related to a fair value write-down on assets, and debt modification costs related to refinancing our Term Loan B loan.
• Net tax benefit related to a valuation allowance release.
• Loss (income) from discontinued operations includes expense from ongoing litigation costs and settlements related to the DeVry University and Carrington College divestitures, a loss on sale of ACAMS, Becker, and OCL for working capital adjustments to the initial sales prices and a tax return to provision adjustment, and the earn-outs we received.

Adtalem Global Education Inc. Non-GAAP Operating Income by Segment (unaudited) (in thousands)
		Three Months Ended															Nine Months Ended
		March 31,															March 31,
										Increase/(Decrease)															Increase/(Decrease)
		2024				2023				$				%			2024				2023				$				%
Chamberlain:
Operating income (GAAP)		$	43,349			$	39,589			$	3,760			9.5	%		$	97,313			$	99,002			$	(1,689	)		(1.7	)%
Restructuring expense			—				—				—							—				818				(818	)
Adjusted operating income (non-GAAP)		$	43,349			$	39,589			$	3,760			9.5	%		$	97,313			$	99,820			$	(2,507	)		(2.5	)%
Operating margin (GAAP)			25.4	%			26.4	%										20.9	%			23.2	%
Operating margin (non-GAAP)			25.4	%			26.4	%										20.9	%			23.4	%
Walden:
Operating income (GAAP)		$	23,585			$	10,343			$	13,242			128.0	%		$	47,121			$	26,071			$	21,050			80.7	%
Restructuring expense			—				53				(53	)						(776	)			3,174				(3,950	)
Intangible amortization expense			8,286				14,232				(5,946	)						28,296				48,936				(20,640	)
Litigation reserve			—				—				—							18,500				—				18,500
Adjusted operating income (non-GAAP)		$	31,871			$	24,628			$	7,243			29.4	%		$	93,141			$	78,181			$	14,960			19.1	%
Operating margin (GAAP)			15.7	%			7.8	%										10.7	%			6.6	%
Operating margin (non-GAAP)			21.2	%			18.5	%										21.2	%			19.8	%
Medical and Veterinary:
Operating income (GAAP)		$	22,759			$	16,472			$	6,287			38.2	%		$	59,142			$	49,172			$	9,970			20.3	%
Restructuring expense			194				421				(227	)						379				7,334				(6,955	)
Adjusted operating income (non-GAAP)		$	22,953			$	16,893			$	6,060			35.9	%		$	59,521			$	56,506			$	3,015			5.3	%
Operating margin (GAAP)			24.8	%			19.0	%										22.0	%			18.6	%
Operating margin (non-GAAP)			25.0	%			19.5	%										22.1	%			21.4	%
Home Office and Other:
Operating loss (GAAP)		$	(27,968	)		$	(6,975	)		$	(20,993	)		(301.0	)%		$	(55,045	)		$	(45,632	)		$	(9,413	)		(20.6	)%
Restructuring expense			279				804				(525	)						1,614				6,380				(4,766	)
Business integration expense			18,450				11,346				7,104							30,621				35,702				(5,081	)
Loss on assets held for sale			—				—				—							647				—				647
Debt modification costs			848				—				848							848				—				848
Gain on sale of assets			—				(13,317	)			13,317							—				(13,317	)			13,317
Adjusted operating loss (non-GAAP)		$	(8,391	)		$	(8,142	)		$	(249	)		(3.1	)%		$	(21,315	)		$	(16,867	)		$	(4,448	)		(26.4	)%
Adtalem Global Education:
Operating income (GAAP)		$	61,725			$	59,429			$	2,296			3.9	%		$	148,531			$	128,613			$	19,918			15.5	%
Restructuring expense			473				1,278				(805	)						1,217				17,706				(16,489	)
Business integration expense			18,450				11,346				7,104							30,621				35,702				(5,081	)
Intangible amortization expense			8,286				14,232				(5,946	)						28,296				48,936				(20,640	)
Litigation reserve			—				—				—							18,500				—				18,500
Loss on assets held for sale			—				—				—							647				—				647
Debt modification costs			848				—				848							848				—				848
Gain on sale of assets			—				(13,317	)			13,317							—				(13,317	)			13,317
Adjusted operating income (non-GAAP)		$	89,782			$	72,968			$	16,814			23.0	%		$	228,660			$	217,640			$	11,020			5.1	%
Operating margin (GAAP)			15.0	%			16.1	%										12.6	%			11.8	%
Operating margin (non-GAAP)			21.8	%			19.8	%										19.5	%			20.0	%

Adtalem Global Education Inc. Non-GAAP Adjusted EBITDA by Segment (unaudited) (in thousands)
		Three Months Ended															Nine Months Ended
		March 31,															March 31,
										Increase/(Decrease)															Increase/(Decrease)
		2024				2023				$				%			2024				2023				$				%
Chamberlain:
Operating income (GAAP)		$	43,349			$	39,589			$	3,760			9.5	%		$	97,313			$	99,002			$	(1,689	)		(1.7	)%
Restructuring expense			—				—				—							—				818				(818	)
Depreciation			5,312				4,405				907							14,790				12,985				1,805
Stock-based compensation			1,795				923				872							6,791				3,600				3,191
Adjusted EBITDA (non-GAAP)		$	50,456			$	44,917			$	5,539			12.3	%		$	118,894			$	116,405			$	2,489			2.1	%
Adjusted EBITDA margin (non-GAAP)			29.6	%			30.0	%										25.5	%			27.3	%
Walden:
Operating income (GAAP)		$	23,585			$	10,343			$	13,242			128.0	%		$	47,121			$	26,071			$	21,050			80.7	%
Restructuring expense			—				53				(53	)						(776	)			3,174				(3,950	)
Intangible amortization expense			8,286				14,232				(5,946	)						28,296				48,936				(20,640	)
Litigation reserve			—				—				—							18,500				—				18,500
Depreciation			2,214				2,439				(225	)						6,681				7,303				(622	)
Stock-based compensation			1,770				754				1,016							5,822				2,945				2,877
Adjusted EBITDA (non-GAAP)		$	35,855			$	27,821			$	8,034			28.9	%		$	105,644			$	88,429			$	17,215			19.5	%
Adjusted EBITDA margin (non-GAAP)			23.8	%			20.9	%										24.1	%			22.3	%
Medical and Veterinary:
Operating income (GAAP)		$	22,759			$	16,472			$	6,287			38.2	%		$	59,142			$	49,172			$	9,970			20.3	%
Restructuring expense			194				421				(227	)						379				7,334				(6,955	)
Depreciation			3,174				3,231				(57	)						9,228				9,367				(139	)
Stock-based compensation			851				587				264							3,687				2,291				1,396
Adjusted EBITDA (non-GAAP)		$	26,978			$	20,711			$	6,267			30.3	%		$	72,436			$	68,164			$	4,272			6.3	%
Adjusted EBITDA margin (non-GAAP)			29.4	%			24.0	%										26.9	%			25.8	%
Home Office and Other:
Operating loss (GAAP)		$	(27,968	)		$	(6,975	)		$	(20,993	)		(301.0	)%		$	(55,045	)		$	(45,632	)		$	(9,413	)		(20.6	)%
Restructuring expense			279				804				(525	)						1,614				6,380				(4,766	)
Business integration expense			18,450				11,346				7,104							30,621				35,702				(5,081	)
Loss on assets held for sale			—				—				—							647				—				647
Debt modification costs			848				—				848							848				—				848
Gain on sale of assets			—				(13,317	)			13,317							—				(13,317	)			13,317
Depreciation			692				82				610							1,407				1,963				(556	)
Stock-based compensation			1,484				531				953							3,105				2,072				1,033
Adjusted EBITDA (non-GAAP)		$	(6,215	)		$	(7,529	)		$	1,314			17.5	%		$	(16,803	)		$	(12,832	)		$	(3,971	)		(30.9	)%
Adtalem Global Education:
Net income (GAAP)		$	36,821			$	45,869			$	(9,048	)		(19.7	)%		$	87,358			$	71,114			$	16,244			22.8	%
Loss (income) from discontinued operations			620				2,694				(2,074	)						(245	)			7,088				(7,333	)
Interest expense			16,560				14,457				2,103							48,910				47,806				1,104
Other income, net			(2,871	)			(3,980	)			1,109							(8,648	)			(3,301	)			(5,347	)
Provision for income taxes			10,595				389				10,206							21,156				5,906				15,250
Operating income (GAAP)			61,725				59,429				2,296							148,531				128,613				19,918
Depreciation and amortization			19,678				24,389				(4,711	)						60,402				80,554				(20,152	)
Stock-based compensation			5,900				2,795				3,105							19,405				10,908				8,497
Restructuring expense			473				1,278				(805	)						1,217				17,706				(16,489	)
Business integration expense			18,450				11,346				7,104							30,621				35,702				(5,081	)
Litigation reserve			—				—				—							18,500				—				18,500
Loss on assets held for sale			—				—				—							647				—				647
Debt modification costs			848				—				848							848				—				848
Gain on sale of assets			—				(13,317	)			13,317							—				(13,317	)			13,317
Adjusted EBITDA (non-GAAP)		$	107,074			$	85,920			$	21,154			24.6	%		$	280,171			$	260,166			$	20,005			7.7	%
Adjusted EBITDA margin (non-GAAP)			25.9	%			23.3	%										23.8	%			24.0	%

Adtalem Global Education Inc. Non-GAAP Earnings Disclosure (unaudited) (in thousands, except per share data)
		Three Months Ended								Nine Months Ended
		March 31,								March 31,
		2024				2023				2024				2023
Net income (GAAP)		$	36,821			$	45,869			$	87,358			$	71,114
Restructuring expense			473				1,278				1,217				17,706
Business integration expense			18,450				11,346				30,621				35,702
Intangible amortization expense			8,286				14,232				28,296				48,936
Gain on sale of assets			—				(13,317	)			—				(13,317	)
Write-off of debt discount and issuance costs, gain on extinguishment of debt, litigation reserve, investment impairment, loss on assets held for sale, and debt modification costs			1,961				—				21,108				9,226
Net tax benefit related to a valuation allowance release			—				(6,184	)			—				(6,184	)
Income tax impact on non-GAAP adjustments (1)			(7,260	)			(4,359	)			(19,355	)			(23,341	)
Loss (income) from discontinued operations			620				2,694				(245	)			7,088
Adjusted net income (non-GAAP)		$	59,351			$	51,559			$	149,000			$	146,930

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

		Three Months Ended								Nine Months Ended
		March 31,								March 31,
		2024				2023				2024				2023
Diluted earnings per share (GAAP)		$	0.93			$	1.00			$	2.14			$	1.54
Effect on diluted earnings per share:
Restructuring expense			0.01				0.03				0.03				0.38
Business integration expense			0.47				0.25				0.75				0.77
Intangible amortization expense			0.21				0.31				0.69				1.06
Gain on sale of assets			-				(0.29	)			-				(0.29	)
Write-off of debt discount and issuance costs, gain on extinguishment of debt, litigation reserve, investment impairment, loss on assets held for sale, and debt modification costs			0.05				-				0.52				0.20
Net tax benefit related to a valuation allowance release			-				(0.14	)			-				(0.13	)
Income tax impact on non-GAAP adjustments (1)			(0.18	)			(0.10	)			(0.47	)			(0.51	)
Loss (income) from discontinued operations			0.02				0.06				(0.01	)			0.15
Adjusted earnings per share (non-GAAP)		$	1.50			$	1.13			$	3.65			$	3.19
Diluted shares used in non-GAAP EPS calculation			39,636				45,801				40,874				46,089

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)
		Three Months Ended								Nine Months Ended								Twelve Months Ended
		FY24				FY23				FY24				FY23				FY24				FY24				FY24				FY23				FY23
		Q3				Q3				Q3				Q3				Q3				Q2				Q1				Q4				Q3
Net cash provided by operating activities-continuing operations (GAAP)		$	163,740			$	107,544			$	246,809			$	149,821			$	302,672			$	246,476			$	204,934			$	205,684			$	255,052
Capital expenditures			(21,686	)			(9,309	)			(52,014	)			(19,056	)			(69,966	)			(57,589	)			(46,503	)			(37,008	)			(27,861	)
Free cash flow (non-GAAP)		$	142,054			$	98,235			$	194,795			$	130,765			$	232,706			$	188,887			$	158,431			$	168,676			$	227,191

Adtalem Global Education Inc. Non-GAAP Net Leverage Disclosure (unaudited) (in thousands)
		Twelve Months Ended
		March 31, 2024
Adtalem Global Education:
Net income (GAAP)		$	109,602
Loss from discontinued operations			1,061
Interest expense			64,204
Other income, net			(12,312	)
Provision for income taxes			25,533
Depreciation and amortization			82,662
Stock-based compensation			22,796
Restructuring expense			2,328
Business integration expense			37,580
Litigation reserve			28,500
Loss on assets held for sale			647
Debt modification costs			848
Adjusted EBITDA (non-GAAP)		$	363,449
		March 31, 2024
Long-term debt		$	658,283
Less: Cash and cash equivalents			(179,762	)
Net debt (non-GAAP)		$	478,521
Net leverage (non-GAAP)			1.3 x

 

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The Adtalem Global Education Stock at the time of publication of the news with a raise of +11,08 % to 51,65EUR on Lang & Schwarz stock exchange (02. Mai 2024, 22:18 Uhr).