Covista Inc. · NYSE:CVSA
Covista — Adtalem Global Education — Q4 2022 Earnings Presentation
20 slides from Covista's earnings presentation, Aug 11, 2022
Slide 1: Fourth Quarter & Full Year 2022 Earnings Presentation
Fourth Quarter & Full Year 2022 Earnings Presentation August 11, 2022
Slide 2: Safe Harbor
Safe Harbor 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
Slide 3: Q4 2022 Highlights
Q4 2022 Highlights Q4 2022 • Continued progress on the integration of Walden, delivering targeted $30 million in run-rate cost synergies Revenue • Successful divestiture of Financial Services segment, significantly reducing net leverage $361.2 million • $150 million accelerated share repurchase prog
Slide 4: Q4 2022 P&L Highlights
Q4 2022 P&L Highlights Revenue (in millions) Operating Income1 (in millions) $88.1 $361.2 61.6% 174.7% $223.5 $32.1 14.4% 1000 bps 24.4% margin margin Q4 2021 Q4 2022 Q4 2021 Q4 2022 Adjusted EBITDA1 Diluted EPS1 (in millions) $1.31 $103.2 172.9% 139.9% $43.0 $0.48 19.3% 930 bps 28.6% margin margin
Slide 5: FY 2022 P&L Highlights
FY 2022 P&L Highlights Revenue (in millions) Operating Income1 (in millions) $1,387.1 $271.3 53.0% 73.4% $906.9 $156.5 17.3% 230 bps 19.6% margin margin FY 2021 FY 2022 FY 2021 FY 2022 Adjusted EBITDA1 Diluted EPS1 (in millions) $3.24 $332.3 40.3% 63.5% $2.31 $203.2 22.4% 160 bps 24.0% margin margin
Slide 6: Q4 2022 Chamberlain Performance
Q4 2022 Chamberlain Performance Revenue Revenue(in($M) millions) Operating Income1 (in millions) -1.1% 38.6% $41.7 $141.8 $140.2 $30.1 21.2% 29.7% margin 850 bps margin Q4 2021 Q4 2022 Q4 2021 Q4 2022 • Q4 2022 revenue decreased 1.1% to $140.2 million • Operating income1 increased 38.6% to $41.7 mil
Slide 7: Q4 2022 Walden Performance
Q4 2022 Walden Performance Revenue Revenue(in($M) millions) Operating Income2 (in millions) $36.1 $137.1 26.4% margin 1 1 Q4 2021 Q4 2022 Q4 2021 Q4 2022 • Revenue was $137.1 million this quarter • Operating income2 was $36.1 million • Operating margin2 was 26.4% 1. Walden was not owned by Adtalem G
Slide 8: Q4 2022 Med & Vet Performance
Q4 2022 Med & Vet Performance Revenue Revenue(in($M) millions) Operating Income1 (in millions) 74.4% 2.7% $19.6 $81.7 $83.9 $11.2 13.7% 960 23.3% margin bps margin Q4 2021 Q4 2022 Q4 2021 Q4 2022 • Q4 2022 revenue increased 2.7% to $83.9 million • Operating income1 increased 74.4% to $19.6 million d
Slide 9: Free Cash Flow
Free Cash Flow Three Months Ended (in millions) Twelve Months Ended (in millions) Q4 2022 Q4 2021 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Operating Cash $105.4 $43.1 $163.8 $101.5 $91.8 $124.7 $168.8 Flow Capital $(8.8) $(11.3) $(31.0) $(33.5) $(34.9) $(34.3) $(39.9) Expenditures Free Cash $96.6 $31
Slide 10: Outlook
Outlook Establishing FY 2023 revenue and diluted EPS1 guidance: REVENUE (in millions) ADJUSTED EARNINGS PER SHARE1 $1,380 - $1,450 $3.95 - $4.20 1. Non-GAAP Financial Measures. See reconciliations from GAAP Financial Measures in the Appendix ©2022 Adtalem Global Education Inc. All rights reserved. 1
Slide 11: Appendix
Appendix ADTALEM
Slide 12: 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
Slide 13: Total Enrollment
Total Enrollment Q4 2022 Q4 2021 % Change Adtalem Global Education Student Enrollments Total students(1) 77,665 83,688 -7.2% Chamberlain University Total students 32,891 34,930 -5.8% Walden University(2) Total students 39,470 43,632 -9.5% Medical & Veterinary Total students 5,304 5,126 3.5% 1. Repre
Slide 14: Historical Q4 Total Enrollment Trends
Historical Q4 Total Enrollment Trends 43,693 44,079 43,632 39,470 34,930 33,407 32,891 30,867 Q4 2019 Q4 2020 Q4 2021 Q4 2022 1 Walden Chamberlain 1. Prior year Walden enrollment figures are as calculated by Walden while owned and operated by Laureate Education, Inc., and are included here for compa
Slide 15: Non-GAAP Operating Income by Segment
Non-GAAP Operating Income by Segment (unaudited) (in thousands) Three Months Ended Year Ended June 30, June 30, Increase/(Decrease) Increase/(Decrease) 2022 2021 $ % 2022 2021 $ % Chamberlain: Operating income (GAAP) $ 41,124 $ 30,093 $ 11,031 36.7 % $ 124,414 $ 128,851 $ (4,437) (3.4)% Restructurin
Slide 16: Non-GAAP Adjusted EBITDA by Segment
Non-GAAP Adjusted EBITDA by Segment (unaudited) (in thousands) Three Months Ended Year Ended June 30, June 30, Increase/(Decrease) Increase/(Decrease) 2022 2021 $ % 2022 2021 $ % Chamberlain: Operating income (GAAP) $ 41,124 $ 30,093 $ 11,031 36.7 % $ 124,414 $ 128,851 $ (4,437) (3.4)% Restructuring
Slide 17: Non-GAAP Earnings Disclosure
Non-GAAP Earnings Disclosure (unaudited) (in thousands, except per share data) Three Months Ended Year Ended June 30, June 30, 2022 2021 2022 2021 Net income attributable to Adtalem (GAAP) $ 8,014 $ 9,012 $ 317,705 $ 76,909 Deferred revenue adjustment — — 8,561 — CEO transition costs — — 6,195 — Res
Slide 18: Non-GAAP Free Cash Flow Disclosure
Non-GAAP Free Cash Flow Disclosure (unaudited) (in thousands) Three Months Ended Twelve Months Ended FY22 FY21 FY22 FY22 FY22 FY22 FY21 Q4 Q4 Q4 Q3 Q2 Q1 Q4 Net cash provided by operating activities-continuing operations (GAAP) $ 105,428 $ 43,084 $ 163,825 $ 101,481 $ 91,835 $ 124,742 $ 168,760 Capi
Slide 19: Non-GAAP Outlook Disclosure
Non-GAAP Outlook Disclosure (unaudited) (in thousands, except per share data) Year Ended June 30, 2023 Expected earnings per share, diluted (GAAP) $ 2.72 to 2.97 Expected effects on diluted earnings per share: Estimated purchase accounting adjustment - intangible amortization 1.33 Estimated incremen
Slide 20: Non-GAAP Net Leverage Disclosure
Non-GAAP Net Leverage Disclosure (unaudited) (in thousands) Year Ended June 30, 2022 Adtalem Global Education: Net income attributable to Adtalem (GAAP) $ 317,705 Net income from discontinued operations attributable to Adtalem (347,532) Net other expense 125,528 Benefit from income taxes (15,237) De
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