Covista Inc. · NYSE:CVSA
Covista — Adtalem Global Education — Q1 2025 Earnings Presentation
25 slides from Covista's earnings presentation, Oct 29, 2024
Slide 1: First Quarter 2025 Earnings
Slide 2: Cautionary disclosure regarding forward-looking statements
GiosaL EpucaTion val Education In. All rights reserved CAUTIONARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS nents contained in this presentation are forward-looking statements as defined in the Private Litigation Reform Act of 1995. Forward-looking statements provide current expectations of fu
Slide 3: Purpose driven organization
Purpose driven organization committed to student and societal outcomes A Fore e Creating shareholder value Growth with Purpose strategy fo r Go O ‘a| delivering long-term growth Systemically important component of the U.S. healthcare system, training care providers ADTALEM GLoBAL EDUCATION ADTALEM:
Slide 4: Like-kind institutions campuses
5 like-kind institutions 27 campuses Robust online delivery capabilities As of September 30, 2024 1) Programs = degree and certficate programs J =? All post-secondary higher education >90k students ~150 programs’ ADT LEM GLOBAL EDUCATION All with a center of gravity in healthcare ~90% of student enr
Slide 5: Growth with Purpose
Growth with Purpose Growth with Purpose strategy Driving organic revenue growth Marketing Enrollment Pricing Expanding Access to Underserved Communities Ongoing Commitment to Outstanding Student Outcomes ADTALEM GLOBAL EDUCATION ADTALEM: First Quarter 2025 Results / 5 2024 Adtclem Global Education I
Slide 6: Q1 2025 Performance
Q1 2025 Performance Total enrollment growth YoY: +11.2% $4174 million 23.2% $1.29 Revenue Adj. EBITDA’ margin Adj. EPS" +13.2% vs. prior year +140 bps vs. prior year +38.7% vs. prior year Growth with Purpose delivering accelerated total enrollment and operational excellence * Chamberlain: 39.0k stud
Slide 7: Q1 2025 Highlights
Q1 2025 Highlights Revenue & Adj. EPS' ahead of expectations = Fifth straight quarter of total enrollment YoY growth with sequential improvement, second straight quarter of double-digit percentage growth YoY = Investing in student experience through technology, modernization of higher education Fina
Slide 8: Accelerating Total Enrollment Trends
Accelerating Total Enrollment Trends Chamberlain: seventh straight quarter of YoY total enrollment growth in pre-licensure & post-licensure programs Walden: fifth straight quarter of YoY total enrollment growth Continue to deliver enhanced student outcomes, maintained high persistence levels ] Total
Slide 9: Enterprise Performance
Enterprise Performance Growth with Purpose strategy improving key areas of value creation Revenue growth and efficiencies generating operational leverage Operational leverage greater than increased level of investments Q1 ‘25 Qi ‘24 Avs. Q1 ‘24 Total Enrollment +11.2% + {Improvement of +120 basis po
Slide 10: Chamberlain Performance
Chamberlain Performance Growth driven by post-licensure & pre-licensure nursing programs Higher persistence Q1 ‘25 Q1 ‘24 Avs. Q1 ‘24 $ in Millions Total Enrollment +11.7% Revenue $167.9 $142.6 +17.8% * Growth in pre-licensure & post-licensure nursing programs Adj. EBITDA’ $37.0 $31.5 +17.2% % Margi
Slide 11: Walden Performance
Walden Performance Robust total enrollment growth & continued strength in new enrollment demand High persistence én Q1 ‘25 Q1 ‘24 Avs. Q1 ‘24 in Millions Total Enrollment +12.2% Revenue $161.5 $141.6 +14.1% * Growth in healthcare & non-healthcare programs Adj. EBITDA’ $47.8 $35.1 +35.9% % Margin’ 29
Slide 12: Medical & Veterinary Performance
Medical & Veterinary Performance Vet maintaining leading position Med operational remediation plans delivering sequential improvement in total enrollment YoY sin Q1 ‘25 Q1 ‘24 Avs. Q1 ‘24 in Millions Total Enrollment (0.7)% Revenue $88.0 $84.6 +3.9% + Vet: RUSVM operating at near capacity + Med: seq
Slide 13: Cash Flow
Cash Flow Continued healthy cash generation and disciplined capital allocation $ in Millions = . cae . Three Months Irailing ‘Twelve Months $233 $239 $243 189 $79 sise $ $76 Q1 ‘24 Q1 ‘25 Q1 ‘24 Q2 ‘24 Q3 ‘24 Q4 ‘24 Q1 ‘25 Operating Cash Flow! $86 $89 $189 $228 $277 $288 $292 Capital Expenditure ($1
Slide 14: FY 2025 Guidance
FY 2025 Guidance ADTALEM Raising Revenue and Adj. EPS Outlook Gropat EDuCATION ® Underlying Themes R higher in 1H @) g inte Revenue $1,690m - $1,730m +100 bps adj. EBI margin expansion Operational leverage greater tl Adj. EPS' $5.75 _ $5.95 investments in organic growth 1, Reconciliations to Nor-GAA
Slide 15: A systemically important component of the U.S. healthcare system
A systemically important component of the U.S. healthcare system, with a clear growth roadmap and meaningful shareholder value creation opportunities LEM BAL EDUCATION Transformed Portfolio, Positioned Well as a Leading Healthcare Educator In a growing, structurally attractive industry with durable
Slide 16: Disciplined Capital Allocation Philosophy
Disciplined Capital Allocation Philosophy ADTALEM GiosaL EpucaTion 1 Timing and amount of any repurchase will be determined based on evaluation of market conditions and ether factors Student Growth Growth with Purpose to invest back into our institutions and capabilities to reach optimal capacity Re
Slide 17: Appendix
Appendix ADTALEM GLoBAL EDUCATION
Slide 18: Non-GAAP financial measures and reconciliations
Non-GAAP financial measures and reconciliations We believe that certain non-GAAP financial measures provide investors with usefil 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
Slide 19: Non-GAAP Adjusted Operating by Segment Disclosure (1/2)
Non-GAAP Adjusted Operating by Segment Disclosure (1/2) (unaudited) (in thousands) ‘Three Months Ended September 30, Tncrease/(Decrease) 2024 2023, 3 % ‘Chamberlain: ‘Operating income (GAAP) 8 s 24324 1.650 68% Restnicturing expense = 1858 Adjusted operating income (non-GAAP) 3 2782 mp 3.508 14.4% O
Slide 20: Non-GAAP Adjusted Operating by Segment Disclosure (2/2)
Non-GAAP Adjusted Operating by Segment Disclosure (2/2) (unaudited) (in thousands) ‘Three Months Ended September 30, Increase/(Decrease) 2024 2023, 5 % Home Office: Operating loss (GAAP) S 0244) S243) 2187 176% ‘Restructuring expense 7 562 85) ‘Business integration expense = 5.262 (5,262) Debt modif
Slide 21: Non-GAAP Adjusted EBITDA by Segment Disclosure (1/2)
Non-GAAP Adjusted EBITDA by Segment Disclosure (1/2) (unaudited) (in thousands) ‘Three Months Ended September 30, Tncrease/(Decrease) 2024 2023, s % Chamberlain: ‘Operating income (GAAP) $ 25,974 $ mau $ 1,650 68% Restnicturing expense 1,858 = 1,858 Depreciation 5,368 4.116 1,252 Amortization of clo
Slide 22: Non-GAAP Adjusted EBITDA by Segment Disclosure (2/2)
Non-GAAP Adjusted EBITDA by Segment Disclosure (2/2) (unaudited) (in thousands) ‘Three Months Ended September 30, Tncrease (Decrease) 2024 2023 $ % Home Office: Operating loss (GAAP) S$ 0024) $2431) 8 2,187 176% Restructuring expense 177 562 (385) Business integration expense = 5,262 5,262) Debt mod
Slide 23: Non-GAAP Earnings Disclosure
Non-GAAP Earnings Disclosure (in thousands, except per share data) ‘Net income (GAAP) Restructuring expense Business integration expense Amortization of acquired intangible assets Litigation reserve and debt modification costs Income tax impact on non-GAAP adjustments Loss from discontinued operatio
Slide 24: Non-GAAP Free Cash Flow Disclosure
Non-GAAP Free Cash Flow Disclosure (unaudited) {in thousands) ‘Three Months Ended ‘Twelve Months Ended. FY24 FY25 FY24 FY24 FY24 FY24 FY25 Qu Qu Qu Qn 93 Qt Qu ‘Net cash provided by operating aclivities-continuing operations (GAAP) S $6114 $ 89,567 $ 189,501 $ 227,600 $ 276843 $ 288,367 $ 291,820 Ca
Slide 25: Non-GAAP Net Leverage Disclosure
Non-GAAP Net Leverage Disclosure (unaudited) {in thousands) ‘Twelve Months Ended September 30, 2024 Adtalem Global Education: Net income (GAAP) 8 172,296 Income from discontinued operations @97) Interest expense 62484 ‘Other income, net 40,974) Provision for income taxes 35,589 Depreciation and amor
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