Covista Inc. · NYSE:CVSA

Covista — Adtalem Global Education — Furey Research Partners Hidden Gems Conference 2023

27 slides from Covista's conference presentation, Nov 20, 2023

  1. Slide 1: A Force For Good

    A Force For Good Furey Research Hidden Gems Conference November 20, 2023 ©2023 Adtalem Global Education Inc. All rights reserved

  2. Slide 2: Safe Harbor

    Safe FORWARD-LOOKING STATEMENTS Certain statements contained in this presentation 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 Harbor assumptions and includ

  3. Slide 3: A Force for Good

    Purpose driven organization committed to student and societal outcomes A Force Creating shareholder value for Good Growth with Purpose strategy delivering long-term growth Systemically important component of the U.S. healthcare system, training care providers A D T A L E M / 3 ©2023 Adtalem Global E

  4. Slide 4: Growth with Purpose strategy

    Journey across three horizons Scaled solution addressing healthcare’s most significant Growth with Purpose challenge strategy Started from a position of strength A D T A L E M / 4 ©2023 Adtalem Global Education Inc. All rights reserved

  5. Slide 5: Like-kind institutions in post-secondary higher education

    5 like-kind institutions All post-secondary All with a center of 27 campuses higher education gravity in healthcare Robust online delivery >81k students ~90% of student enrollment capabilities ~150 programs1 is healthcare focused As of September 30, 2023 A D T A L E M / 5 1) Programs = degree and ce

  6. Slide 6: Chamberlain, Walden and Medical/Veterinary institutions

    34.9k students 1 41.0k students 1 5.2k students 1 Largest nursing school in the U.S ~80% healthcare enrollment Medical: 3 campuses 23 campuses 7 colleges, ~100 degree programs 38 health system partnerships Graduates practice: Bachelor of Science in Nursing online in 30 states 100% online in 50 state

  7. Slide 7: Full breadth of healthcare programs across the learning continuum

    Offering the full breadth of healthcare programs across the entire healthcare learning continuum Adtalem Enrollment Mix Fiscal Year ‘23: June 30, 2023 Bachelor’s Master’s Doctoral 33% 46% 21% Nursing Social & Behavioral Medical & Post-Secondary Sciences Veterinary Other Degrees 46.3k 16.9k 4.9k 7.7k

  8. Slide 8: Utilizing innovative modalities to meet students where they learn

    Utilizing innovative modalities to meet students where, when and how they learn best ~150 ~95% 1 1 Programs Programs offered online Addison Troy Chicago Tinley Park ADDISON Columbus TRO CHICAGO St. Louis Y North Brunswick Sacramento Indianapolis TINLEY Las Vegas Tysons Corner 50 Charlotte INDIANAPOL

  9. Slide 9: Adtalem by the numbers

    Adtalem by the numbers Scale #1 #1 ~3,500 ~300k #1 Grantor of U.S. nursing Provider of medical graduates Social & Behavioral Sciences Alumni impacting Educator of DVM graduates; 1 1 degrees; 9% of 2022 total to the U.S. in 2022 degrees granted in 2022 local communities ~8% of new DVM graduates in 20

  10. Slide 10: The Opportunity

    The Opportunity Market New Right Leading Operating Market Scale Model Incredibly large and attractive The nation’s largest1 Walden acquisition market with durable supply & healthcare educator, catalyzed launch of new demand asymmetry systematically important operating model • Creating complementary

  11. Slide 11: Growth with Purpose strategy: driving organic revenue growth

    Growth with Purpose Growth with Purpose strategy Driving organic revenue growth Marketing Enrollment Retention Pricing Programs Expanding Access to Underserved Communities Ongoing Commitment to Outstanding Student Outcomes A D T A L E M / 1 1 ©2023 Adtalem Global Education Inc. All rights reserved

  12. Slide 12: Focusing on our expertise and competitive advantages

    Focusing on our expertise and competitive advantages to realize the full potential of our institutions $ millions Revenue Adj. EBITDA1 Adj. EBITDA Margin1 $1,451 $343 $1,382 24% 24% $329 FY ‘22 FY ‘23 FY ‘22 FY ‘23 FY ‘22 FY ‘23 1. Reconciliations to Non-GAAP Financial Measures and definitions can b

  13. Slide 13: Path to achieve our full financial potential

    Path to achieve our full financial potential Utilizing existing Growth with Purpose Long-term margin Accretive investments capacity at our market strategy driving expansion through and disciplined capital leading institutions and total student operational effectiveness allocation strategy expanding

  14. Slide 14: Q1 2024: Accelerating Total Enrollment Trends

    Q1 2024: Accelerating Total Enrollment Trends Chamberlain third straight quarter of YoY total enrollment growth in pre-licensure & post-licensure programs Walden positive YoY total enrollment growth led by healthcare programs Continue to deliver enhanced student outcomes, high persistence levels Tot

  15. Slide 15: Q1 2024: Performance

    Q1 2024: Performance Total enrollment growth YoY: +1.9% $369 million 21.8% 1 $0.93 1 Revenue Adj. EBITDA margin Adj. EPS +4.1% vs. prior year (180) bps vs. prior year +3.3% vs. prior year Growth with Purpose delivering enterprise total enrollment growth • Chamberlain: 34.9k students o Accelerated gr

  16. Slide 16: Cash Flow

    Cash Flow Continued healthy cash generation and disciplined capital allocation $ in Millions Trailing Twelve Months $227 $196 $199 $169 $158 Q1 ‘23 Q2 ‘23 Q3 ‘23 Q4 ‘23 Q1 ‘24 Operating Cash Flow $226 $225 $255 $206 $205 Capital Expenditure ($30) ($26) ($28) ($37) ($47) 1 Free Cash Flow $196 $199 $2

  17. Slide 17: Transformed Portfolio, Positioned Well as a Leading Healthcare Educator

    Transformed Portfolio, Positioned Well as a Leading Healthcare Educator In a growing, structurally attractive industry with tailwinds Creating Long-Term Value with Growth with Purpose Strategy Focused on accelerating organic total enrollment growth and efficiency As a systemically important componen

  18. Slide 18: Disciplined Capital Allocation Philosophy

    Disciplined Student Growth Capital Allocation Growth with Purpose to invest back into our institutions and capabilities to reach optimal capacity Philosophy Return Excess Cash Execution of the remaining $81m against our Board-authorized $300m share repurchase program through February 2025 Financial

  19. Slide 19: Appendix

    Appendix A D T A L E M / 1 9 ©2023 Adtalem Global Education Inc. All rights reserved

  20. Slide 20: Non-GAAP financial measures and reconciliations

    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 fo

  21. Slide 21: Non-GAAP Adjusted EBITDA by Segment Disclosure (1/4)

    Non-GAAP Adjusted EBITDA by Segment Disclosure (1/4) (unaudited) (in thousands) Year Ended June 30, Increase/(Decrease) 2023 2022 $ % Chamberlain: Operating income (GAAP) $ 134,685 $ 124,414 $ 10,271 8.3 % Restructuring expense 818 2,838 (2,020) Depreciation 17,264 18,547 (1,283) Stock-based compens

  22. Slide 22: Non-GAAP Adjusted EBITDA by Segment Disclosure (2/4)

    Non-GAAP Adjusted EBITDA by Segment Disclosure (2/4) (unaudited) (in thousands) Year Ended June 30, Increase/(Decrease) 2023 2022 $ % Home Office and Other: Operating loss (GAAP) $ (62,044) $ (101,719) $ 39,675 39.0 % CEO transition costs — 6,195 (6,195) Restructuring expense 7,067 8,946 (1,879) Bus

  23. Slide 23: Non-GAAP Adjusted EBITDA by Segment Disclosure (3/4)

    Non-GAAP Adjusted EBITDA by Segment Disclosure (3/4) (unaudited) (in thousands) Three Months Ended September 30, Increase/(Decrease) 2023 2022 $ % Chamberlain: Operating income (GAAP) $ 24,324 $ 26,184 $ (1,860) (7.1)% Restructuring expense — 818 (818) Depreciation 4,316 4,481 (165) Stock-based comp

  24. Slide 24: Non-GAAP Adjusted EBITDA by Segment Disclosure (4/4)

    Non-GAAP Adjusted EBITDA by Segment Disclosure (4/4) (unaudited) (in thousands) Three Months Ended September 30, Increase/(Decrease) 2023 2022 $ % Home Office and Other: Operating loss (GAAP) $ (12,431) $ (15,721) $ 3,290 20.9 % Restructuring expense 562 4,341 (3,779) Business integration expense 5,

  25. Slide 25: Non-GAAP Earnings Disclosure

    Non-GAAP Earnings Disclosure (unaudited) (in thousands, except per share data) Three Months Ended September 30, 2023 2022 Net income (GAAP) $ 10,646 $ 592 Restructuring expense 676 15,065 Business integration expense 5,262 9,540 Intangible amortization expense 10,677 18,528 Write-off of debt discoun

  26. Slide 26: Non-GAAP Free Cash Flow Disclosure

    Non-GAAP Free Cash Flow Disclosure (unaudited) (in thousands) Three Months Ended Twelve Months Ended FY24 FY23 FY24 FY23 FY23 FY23 FY23 Q1 Q1 Q1 Q4 Q3 Q2 Q1 Net cash provided by operating activities-continuing operations (GAAP) $ 90,726 $ 91,476 $ 204,934 $ 205,684 $ 255,052 $ 225,247 $ 225,972 Capi

  27. Slide 27: Non-GAAP Net Leverage Disclosure

    Non-GAAP Net Leverage Disclosure (unaudited) (in thousands) Twelve Months Ended September 30, 2023 Adtalem Global Education: Net income (GAAP) $ 103,412 Net loss from discontinued operations 4,786 Interest expense 60,997 Other income, net (8,418) Provision for income taxes 11,953 Depreciation and am

Adtalem Global Education — Furey Research Partners Hidden Gems Conference 2023 on 6ix