Covista Inc. · NYSE:CVSA
Covista — Adtalem Global Education — Investor Presentation (September 2019)
30 slides from Covista's investor presentation, September 2019
Slide 1: Investor Presentation
Investor Presentation September 2019
Slide 2: Safe Harbor
Safe Harbor Certain statements contained in this presentation concerning Adtalem Global Education’s future performance, including those statements concerning expectations or plans, constitute “forward-looking statements” within the meaning of the Safe Harbor Provision of the Private Securities Litig
Slide 3: Compelling Investment Thesis
Compelling Investment Thesis Leading competitive positions with Mission-based organization differentiated solutions in growing focused on serving student markets and employer partners Streamlined and focused portfolio Significant opportunities for aligned to a compelling long-term organic revenue gr
Slide 4: Disciplined and Value-Focused Path Forward
Disciplined and Value-Focused Path Forward Leading positions in growing markets that are resistant to economic fluctuations. One of the largest Medical and No. 1 or 2 brand Healthcare tertiary in all professional education services offerings providers globally ACAMS, supported ATB ranked No. 1 by Be
Slide 5: Mission-Based Organization Serving Students and Employer Partners
Mission-Based Organization Serving Students and Employer Partners Our Vision Is to Empower • Empower students to achieve goals and make inspiring contributions to the global community • Produce marketable graduates who can fill employer partners’ talent needs • Form deep partnerships with employers
Slide 6: Streamlined Business and Enhanced Long-Term Enterprise Strategy
Streamlined Business and Enhanced Long-Term Enterprise Strategy • Embrace our education mission and broaden our customer base • Build upon our existing strengths to drive value creation across the portfolio • Leverage the existing portfolio while transforming how we integrate and deploy capabilities
Slide 7: Organic Growth and Margin Expansion Opportunities
Organic Growth and Margin Expansion Opportunities Accelerating organic growth supported by increasing operational efficiencies. Increasing capacity in medical and veterinary schools with university and employer partnerships, satellite Return to enrollment campus, new programs growth at medical and v
Slide 8: Strong Financial Position and Cash Generation
Strong Financial Position and Cash Generation Strong cash flow generation, healthy margin profile, solid financial position supports future growth initiatives and shareholder returns. Financial Overview1 • Significant discretionary free cash flow with 17.3% 17.4% ($ Millions) continued focus on main
Slide 9: Experienced, Global Management Team
Experienced, Global Management Team Stephen W. Beard Lisa Wardell Mike Randolfi Chief Operating Officer, General Chairman and CEO Chief Financial Officer Counsel and Corporate Secretary • Lisa Wardell was appointed President and CEO in 2016 and has • Mike Randolfi was appointed Senior Vice President
Slide 10: The Education Landscape Is Shifting; Adtalem Is Evolving to Meet New Demands
The Education Landscape Is Shifting; Adtalem Is Evolving to Meet New Demands ATGE’s traditional business model is impacted by the evolving learning landscape, driven by three key trends… Higher Ed Institutions Boundaries Blurring Tech and Business Facing Pressure to Between Educators Model Innovatio
Slide 11: Sizeable Market Opportunity in Workforce Solutions Value Chain
Sizeable Market Opportunity in Workforce Solutions Value Chain Leveraging Existing Capabilities Workforce Solutions Value Chain TAM Educate Recruit & Select Prepare & Certify Train & Develop TAM* $195B $37B $5B $28B Graduate Continuing and Formal, degree- Industry-related test admissions exams, prof
Slide 12: Adtalem Is Well-Positioned to Drive Shareholder Value as a Workforce Solutions Provider
Adtalem Is Well-Positioned to Drive Shareholder Value as a Workforce Solutions Provider • Strong free cash flow generation and solid financial position supports workforce solution strategy and shareholder return • Strategy enhances Adtalem’s inherent operating leverage – Highly profitable incrementa
Slide 13: Competitive Differentiators of the Workforce Solutions Strategy
Competitive Differentiators of the Workforce Solutions Strategy Several capabilities at the enterprise level, strengthened by the leadership team, will lend themselves to the workforce solutions provider strategy. Brand Strength Global Platform Talent Institutional Academic Foundation Partnerships ©
Slide 14: Robust Portfolio with Diverse FY19 Revenue Mix
Robust Portfolio with Diverse FY19 Revenue Mix Medical & Healthcare Financial Services Business & Law $850M $167M $226M Chamberlain ACAMS Becker Wyden Prof Ed Med & Vet Ibmec Wyden Online Other ©2019 Adtalem Global Education Inc. All rights reserved. 14
Slide 15: Medical & Healthcare
Medical & Healthcare At a Glance • 38,000+ students and 86,000+ alumni from 5 medical and healthcare institutions • 1,500+ clinical relationships with healthcare systems and nursing organizations • Serving a diverse market/demographic of students in the medical and healthcare fields • 90% plus medic
Slide 16: Positioned to Capture Market Demand
Positioned to Capture Market Demand Occupations In Which Demand Exceeds Supply4 NURSING MEDICAL VETERINARY Sales 5% 15% 52k+ $35B Farming, Fishing, and Forestry 5% growth in demand shortfall for primary care Global animal healthcare Office Support 5% for nurses expected physicians in 20252 projected
Slide 17: Chamberlain Has Built and Scaled Market-Leading Programs
Chamberlain Has Built and Scaled Market-Leading Programs Leading to a Large and Influential Alumni Base Chamberlain Graduates by Year 16,000 #1 IN TOTAL NURSING ENROLLMENT 14,000 13,354 #1 IN ENROLLMENT PRE-LICENSURE 12,000 11,261 12,026 BACCALAUREATE NURSING 10,000 #1 IN ENROLLMENT IN MSN-FNP PROGR
Slide 18: Financial Services
Financial Services At a Glance Vertical Investment Highlights • Industry-leading brands with strong value propositions • Compliance/regulatory and certification-driven offerings Becker focuses on the Accounting and Financial Services vertical, including ACAMS is the largest international membership
Slide 19: Business & Law
Business & Law Professional Education brands At a Glance • Reach: 110,000 students are spread across 14 institutions, 20 campus locations and 187 learning centers • Academic strength: B&L institutions have top academic standards and attractive national rankings • Strong brands: Ibmec and Damásio are
Slide 20: Leverage Multiple Vehicles to Achieve Growth Goals
Leverage Multiple Vehicles to Achieve Growth Goals Exploiting the Consistently Accretive Synergies Differentiating Profitable Inorganic of the Capabilities Topline Growth Streamlined Growth Portfolio ©2019 Adtalem Global Education Inc. All rights reserved. 20
Slide 21: Financial Overview
Financial Overview ADTALEM GLOBAL EDUCATION
Slide 22: 4th Quarter 2019 Financial Highlights
4th Quarter 2019 Financial Highlights $330M Revenue • Medical & Healthcare Segment revenue of $212M increased 5.2% compared to the prior year • Financial Services Segment revenue increased $70M 18.1% to $54M, driven by strong performance by Operating Income1 ACAMS and Becker • Business & Law Segment
Slide 23: Fiscal 2019 Financial Highlights
Fiscal 2019 Financial Highlights $1,240M Revenue • Medical & Healthcare Segment revenue of $850M increased 4.2% compared to the prior year • Financial Services Segment revenue increased $216M 13.6% to $167M, driven by strong performance by Operating Income1 ACAMS and Becker • Business & Law Segment
Slide 24: Financially Diversified
Financially Diversified Financial Overview1 FY19 Revenue Mix FY18 Funding Sources By Operating Segment ($ Millions) Medical & 18% Healthcare 47% 46% Financial 1,231 1,240 13% Services 1,208 6% 69% Business & 16.6% 17.3% 17.4% Law 1% 201 213 216 US Federal Assistance (e.g., Title IV) FY17 FY18 FY19 B
Slide 25: Capital Allocation
Capital Allocation Invest in the core – Return capital institutions and to shareholders companies Continually Allocating Capital to Increase Enterprise Value Make strategic Maintain financial acquisitions via strength and disciplined approach flexibility ©2019 Adtalem Global Education Inc. All right
Slide 26: M&A Criteria
M&A Criteria Driving marginal revenue in the core through the thoughtful, disciplined and strategic use of M&A to bridge gaps in the workforce solutions provider capabilities. ROIC and accretive enterprise value Ability to scale Talent/acquihire Impact on global reach Synergy opportunities Positione
Slide 27: FY20 Guidance
FY20 Guidance Key Metrics FY20 Guidance Revenue +5 to 7% Tax Rate 17-18% CapEx $45-50M EPS1 +7 to 9% 1 From continuing operations, excluding special items ©2019 Adtalem Global Education Inc. All rights reserved. 27
Slide 28: Appendix
ADTALEM GLOBAL EDUCATION Appendix
Slide 29: Non-GAAP Financial Information (1/2)
Appendix Non-GAAP Financial Information (1/2) The following table reconciles Adtalem Global Education’s (“Adtalem”) operating income as reported under U.S. Generally Accepted Accounting Principles (“GAAP”) to the non-GAAP measure of Earnings before Interest, Taxes, Depreciation and Amortization (“EB
Slide 30: Non-GAAP Financial Information (2/2)
Appendix Non-GAAP Financial Information (2/2) The following table reconciles Adtalem Global Education’s (“Adtalem”) Cash Flow from Continuing Operations as reported under U.S. Generally Accepted Accounting Principles (“GAAP”) to the non-GAAP measure of Free Cash Flow. Free Cash Flow is defined as Ca
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