Covista Inc. · NYSE:CVSA
Covista — Adtalem Global Education — Q3 2022 Earnings Presentation
19 slides from Covista's earnings presentation, May 5, 2022
Slide 1: Third Quarter 2022 Earnings Presentation
Third Quarter 2022 Earnings Presentation May 5, 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: Q3 2022 Highlights
Q3 2022 Highlights Q3 2022 • Successful divestiture of Financial Services segment for $1 billion Revenue • Utilized $770M of net proceeds towards debt repayment, significantly reducing leverage $365.6 million • Initiated $150 million accelerated share repurchase program using existing cash Operating
Slide 4: Q3 2022 P&L Highlights
Q3 2022 P&L Highlights Revenue (in millions) Operating Income1 (in millions) $76.5 $365.6 58.8% 87.4% $230.2 $40.8 17.7% 320 bps 20.9% margin margin Q3 2021 Q3 2022 Q3 2021 Q3 2022 Adjusted EBITDA1 Diluted EPS1 (in millions) $0.87 $92.5 45.0% 75.0% $52.9 $0.60 23.0% 230 bps 25.3% margin margin Q3 20
Slide 5: Q3 2022 Chamberlain Performance
Q3 2022 Chamberlain Performance Revenue Revenue ($M) ($M) Operating Income1 ($M) $146.3 -2.6% $38.9 7.8% $142.6 $36.1 24.7% 27.3% margin 260 bps margin Q3 2021 Q3 2022 Q3 2021 Q3 2022 • Q3 2022 revenue decreased 2.6% to $142.6 million • Operating income1 increased 7.8% to $38.9 million, due primaril
Slide 6: Q3 2022 Walden Performance
Q3 2022 Walden Performance Revenue Revenue ($M) ($M) Operating Income2 ($M) $26.2 $139.1 18.8% margin 1 1 Q3 2021 Q3 2022 Q3 2021 Q3 2022 • Revenue was $139.1 million this quarter • Operating income2 was $26.2 million • Operating margin2 was 18.8% 1) Walden was not owned by Adtalem Global Education
Slide 7: Q3 2022 Med & Vet Performance
Q3 2022 Med & Vet Performance Revenue Revenue ($M) ($M) Operating Income1 ($M) 30.1% $19.5 0.1% $15.0 $83.9 $84.0 17.9% 530 23.2% margin bps margin Q3 2021 Q3 2022 Q3 2021 Q3 2022 • Q3 2022 revenue relatively flat at $84.0 million • Operating income1 increased 30.1% to $19.5 million driven by cost r
Slide 8: Free Cash Flow
Free Cash Flow Three Months Ended ($M) Twelve Months Ended ($M) 3Q 2022 3Q 2021 3Q 2022 2Q 2022 1Q 2022 4Q 2021 Operating Cash $77.4 $67.7 $101.5 $91.8 $124.7 $168.8 Flow1 Capital $(7.5) $(8.9) $(33.5) $(34.9) $(34.3) $(39.9) Expenditures Free Cash Flow2 $69.9 $58.8 $67.9 $56.9 $90.5 $128.9 1 From c
Slide 9: Outlook
Outlook Revised previous guidance for FY 2022 diluted EPS1 growth based on: • The use of $770 million of net proceeds from the sale of the Financial Services segment towards repayment of debt, thereby reducing interest expense • Accelerated share repurchase program for $150 million of the company’s
Slide 10: Appendix
Appendix ADTALEM
Slide 11: 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 and are useful for period-over-period comparisons. We us
Slide 12: Total Enrollment
Total Enrollment 3Q 2022 3Q 2021 % Change Adtalem Global Education Student Enrollments Total students(1) 82,174 87,685 -6.3% Chamberlain University Total students 34,158 35,702 -4.3% Walden University(2) Total students 42,788 46,691 -8.4% Medical & Veterinary Total students 5,228 5,292 -1.2% 1) Repr
Slide 13: Historical Q3 Total Enrollment Trends
Historical Q3 Total Enrollment Trends 46,691 45,418 45,160 42,788 35,702 33,748 34,158 32,104 Q3 2019 Q3 2020 Q3 2021 Q3 2022 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 compara
Slide 14: Non-GAAP Operating Income by Segment
Non-GAAP Operating Income by Segment Adtalem Global Education Inc. Non-GAAP Operating Income by Segment (unaudited) (in thousands) Three Months Ended Nine Months Ended March 31, March 31, Increase Increase 2022 2021 (Decrease) 2022 2021 (Decrease) Chamberlain: Operating income (GAAP) $ 36,979 $ 36,1
Slide 15: Non-GAAP Adjusted EBITDA by Segment
Non-GAAP Adjusted EBITDA by Segment Adtalem Global Education Inc. Non-GAAP Adjusted EBITDA by Segment (unaudited) (in thousands) Three Months Ended Nine Months Ended March 31, March 31, Increase Increase 2022 2021 (Decrease) 2022 2021 (Decrease) Chamberlain: Operating income (GAAP) $ 36,979 $ 36,107
Slide 16: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables 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, 2022 2021 2022 2021 Net income attributable to Adtalem (GAAP) $ 349,842 $ 24,652 $ 309,691 $ 67,897 Def
Slide 17: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables Adtalem Global Education Inc. Non-GAAP Free Cash Flow Disclosure (unaudited) (in thousands) Three Months Ended Twelve Months Ended FY22 FY21 FY22 FY22 FY22 FY21 Q3 Q3 Q3 Q2 Q1 Q4 Net cash provided by operating activities-continuing operations (GAAP) $ 77,365 $ 67,719 $
Slide 18: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables Adtalem Global Education Inc. Non-GAAP Outlook Disclosure (unaudited) (in millions, except per share data) Year Ended June 30, 2022 Expected earnings per share, diluted (GAAP) $ 6.76 to 6.96 Expected effects on diluted earnings per share: Purchase accounting adjustment
Slide 19: Non-GAAP Net Leverage Disclosure
Non-GAAP Net Leverage Disclosure Adtalem Global Education Inc. Non-GAAP Net Leverage Disclosure (unaudited) (in thousands) Three Months Ended Nine Months Ended Twelve Months Ended June 30, 2021 March 31, 2022 March 31, 2022 Adtalem Global Education: Net income attributable to Adtalem (GAAP) $ 9,012
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