Covista Inc. · NYSE:CVSA

Covista — Adtalem Global Education — Q2 2024 Earnings Presentation

25 slides from Covista's earnings presentation, Jan 30, 2024

  1. Slide 1: Second Quarter 2024 Earnings

    Second Quarter 2024 Earnings January 30, 2024 ©2024 Adtalem Global Education Inc. All rights reserved

  2. Slide 2: Safe Harbor

    Safe 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 Harbor assumptions and include any

  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 : S e c o n d Q u a r t e

  4. Slide 4: 5 like-kind institutions

    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 December 31, 2023 A D T A L E M : S e c o n d Q u a r t e r 2 0

  5. Slide 5: Growth with Purpose

    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 : S e c o n d Q u a r t e r 2 0 2 4 R e s u l t s / 5 ©2024 Adt

  6. Slide 6: Q2 2024 Performance

    Q2 2024 Performance Total enrollment growth YoY: +6.2% $393 million 23.5% 1 $1.23 1 Revenue Adj. EBITDA margin Adj. EPS +8.4% vs. prior year (150) bps vs. prior year +5.1% vs. prior year Growth with Purpose delivering enterprise total enrollment growth • Chamberlain: 35.6k students o Robust growth i

  7. Slide 7: Q2 2024 Highlights

    Q2 2024 Highlights 1 Revenue & Adj. EPS ahead of expectations ▪ Total enrollment growth YoY sequential improvement ▪ Brand campaigns delivering strong demand ▪ Delivering enhanced student experiences, maintained high persistence, quality academic outcomes Capital allocation ▪ Completed $300 million

  8. Slide 8: Accelerating Total Enrollment Trends

    Accelerating Total Enrollment Trends Chamberlain fourth straight quarter of YoY total enrollment growth in pre-licensure & post-licensure programs Walden accelerated positive YoY total enrollment growth led by healthcare programs Continue to deliver enhanced student outcomes, higher persistence leve

  9. Slide 9: Enterprise Performance

    Enterprise Performance Growth with Purpose strategy improving key areas of value creation Revenue growth and operational efficiencies partially offset by strategic investments Q2 ‘24 Q2 ‘23 ∆ vs. Q2 ‘23 Total Enrollment +6.2% $ in Millions • Improvement of +430 basis points compared to Q1 ‘24 YoY Re

  10. Slide 10: Chamberlain Performance

    Chamberlain Performance Growth driven by post-licensure & pre-licensure nursing programs Q2 ‘24 Q2 ‘23 ∆ vs. Q2 ‘23 $ in Millions Total Enrollment +6.6% Revenue $153.6 $141.4 +8.6% • Growth in post-licensure & pre-licensure nursing programs 1 Adj. EBITDA $36.9 $37.7 (2.2)% 1 1 % Margin 24.0% 26.7% (

  11. Slide 11: Walden Performance

    Walden Performance Accelerated total enrollment growth & continued strength in new enrollment demand Higher persistence Q2 ‘24 Q2 ‘23 ∆ vs. Q2 ‘23 $ in Millions Total Enrollment +7.9% Revenue $146.8 $131.9 +11.3% • Growth in healthcare & non-healthcare programs and higher persistence 1 • New enrollm

  12. Slide 12: Medical & Veterinary Performance

    Medical & Veterinary Performance Vet maintaining leading position Med operational remediation plans showing early improvements Q2 ‘24 Q2 ‘23 ∆ vs. Q2 ‘23 $ in Millions Total Enrollment (7.5)% Revenue $92.9 $89.5 +3.8% • 2Q ‘24 doesn’t include a new enrollment period; total enrollment and YoY growth

  13. Slide 13: Cash Flow

    Cash Flow Continued healthy cash generation and disciplined capital allocation $ in Millions Three Months Trailing Twelve Months $227 $199 $189 Q2 ‘23 Q2 ‘24 $169 $158 ($23) ($53) Q2 ‘23 Q3 ‘23 Q4 ‘23 Q1 ‘24 Q2 ‘24 Operating Cash Flow ($49) ($8) $225 $255 $206 $205 $246 Capital Expenditure ($4) ($15

  14. Slide 14: FY 2024 Guidance

    FY 2024 Guidance Raising Revenue and Adj. EPS outlook Underlying Themes Sustained level of higher organic Revenue $1,520m - $1,560m revenue in 2H ‘24 Maintain Adj. EBITDA1 margin Adj. EPS 1 $4.55 - $4.75 Investments in organic growth Continued strong cash flow & active capital deployment 1. Reconcil

  15. Slide 15: 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

  16. Slide 16: 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 1 Completed February 2022 Board-authorized $300m share repurchase program 2 New Board-authorized $300m share repurchase prog

  17. Slide 17: Appendix

    Appendix A D T A L E M : S e c o n d Q u a r t e r 2 0 2 4 R e s u l t s / 1 7 ©2024 Adtalem Global Education Inc. All rights reserved

  18. 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 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

  19. 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 Six Months Ended December 31, December 31, Increase/(Decrease) Increase/(Decrease) 2023 2022 $ % 2023 2022 $ % Chamberlain: Operating income (GAAP) $ 29,640 $ 33,229 $ (3,589) (10.8)% $ 53,964 $ 59,

  20. 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 Six Months Ended December 31, December 31, Increase/(Decrease) Increase/(Decrease) 2023 2022 $ % 2023 2022 $ % Home Office and Other: Operating loss (GAAP) $ (14,646) $ (22,936) $ 8,290 36.1 % $ (27

  21. 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 Six Months Ended December 31, December 31, Increase/(Decrease) Increase/(Decrease) 2023 2022 $ % 2023 2022 $ % Chamberlain: Operating income (GAAP) $ 29,640 $ 33,229 $ (3,589) (10.8)% $ 53,964 $ 59,413

  22. 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 Six Months Ended December 31, December 31, Increase/(Decrease) Increase/(Decrease) 2023 2022 $ % 2023 2022 $ % Home Office and Other: Operating loss (GAAP) $ (14,646) $ (22,936) $ 8,290 36.1 % $ (27,07

  23. Slide 23: Non-GAAP Earnings Disclosure

    Non-GAAP Earnings Disclosure (unaudited) (in thousands, except per share data) Three Months Ended Six Months Ended December 31, December 31, 2023 2022 2023 2022 Net income (GAAP) $ 39,891 $ 24,653 $ 50,537 $ 25,245 Restructuring expense 68 1,363 744 16,428 Business integration expense 6,909 14,816 1

  24. Slide 24: Non-GAAP Free Cash Flow Disclosure

    Non-GAAP Free Cash Flow Disclosure (unaudited) (in thousands) Three Months Ended Six Months Ended Twelve Months Ended FY24 FY23 FY24 FY23 FY24 FY24 FY23 FY23 FY23 Q2 Q2 Q2 Q2 Q2 Q1 Q4 Q3 Q2 Net cash provided by (used in) operating activities-continuing operations (GAAP) $ (7,657) $ (49,199) $ 83,069

  25. Slide 25: Non-GAAP Net Leverage Disclosure

    Non-GAAP Net Leverage Disclosure (unaudited) (in thousands) Twelve Months Ended December 31, 2023 Adtalem Global Education: Net income (GAAP) $ 118,650 Net loss from discontinued operations 3,135 Interest expense 62,101 Other income, net (13,421) Provision for income taxes 15,327 Depreciation and am

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