Covista Inc. · NYSE:CVSA
Covista — Adtalem Global Education — Investor Day (June 2023)
95 slides from Covista's investor day presentation, Jun 20, 2023
Slide 1: Investor Day June 20, 2023
2023 INVESTOR DAY JUNE 20, 2023
Slide 2: Safe Harbor: Forward-Looking Statements
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
Slide 3: Agenda
Agenda: Adtalem: A Force for Good Chamberlain Steve Beard Karen Cox, PhD, RN, FACHE, FAAN President and Chief Executive Officer President, Chamberlain University Growth with Purpose Walden Evan Trent Michael Betz Chief Strategy and Transformation Officer President, Walden University Reimagined Marke
Slide 4: Adtalem: A Force for Good
Adtalem: A Force for Good Steve Beard President and Chief Executive Officer INVESTOR DAY 2022 A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 4
Slide 5: 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 Systematically important component of the U.S. healthcare system, training care providers A D T A L E M : I N V E S T O R D A Y
Slide 6: Growth with Purpose strategy: journey across three horizons
Journey across three horizons Scaled solution addressing healthcare’s most significant Growth with Purpose challenge strategy Started from a position of strength A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 6
Slide 7: Horizon 1: Looking back, we started from a position of strength
Horizon 1: Looking back, we started from a position of strength Strong assets with significant opportunities Rationalize and restructure portfolio to healthcare focus APRIL 2020 Market leading assets and strong academic outcomes Adtalem Brazil Divestiture AUGUST 2021 Disparate business models, story
Slide 8: Adtalem at a glance
5 like-kind institutions All post-secondary All with a center of 27 campuses higher education gravity in healthcare Robust online delivery ~80k students ~90% of student enrollment capabilities ~150 degree programs is healthcare focused A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 8
Slide 9: Adtalem by the numbers
Adtalem by the numbers Scale #1 #2 ~3,500 ~300k #1 Grantor of U.S. nursing Provider of medical residents Social & Behavioral Sciences Alumni impacting Educator of U.S. veterinarians; degrees; 9% of 2022 total to the U.S. in 2022 degrees granted in 2022 local communities ~9% of new DVM graduates in 2
Slide 10: The Opportunity
The Opportunity Market New Right Leading Operating Market Scale Model Incredibly large and attractive The nation’s largest Walden acquisition market with durable supply & healthcare educator, catalyzed launch of new demand asymmetry systematically important operating model • Creating complementary m
Slide 11: Horizon 2: Growth with Purpose strategy
Horizon 2: Growth with Purpose strategy Growth with Purpose Three-year strategic initiative focused on driving organic revenue growth Marketing Enrollment Retention Pricing Programs Dynamic Resource Streamlined enrollment Improved Student Journey Pricing Optimization New programs, Allocation process
Slide 12: Growth with Purpose FY 2026 Targets
Growth with Purpose +4% to +6% +200 bps FY 2026 Targets Revenue CAGR 1 Adj. EBITDA2 margin expansion Incremental vs. FY 20231 +$175m to +$275m 1. Revenue CAGR based on midpoint of FY23 guidance (range is $1,400m - $1,450m; midpoint is $1,425m). A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 1 2 2.
Slide 13: Horizon 3: Scaled solution addressing healthcare's most significant challenge
Horizon 3: Scaled solution addressing healthcare’s most significant challenge #1 Early proof points Workforce challenges – including personnel shortages – ranked No. 1 on the list of Fully funded tuition hospital CEOs’ top concerns in 2022 Co-located campus 42% Of surveyed health system executives b
Slide 14: A Category of One
A Category of One Scale Healthcare Focus Access Mission Strong Academic Outcomes A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 1 4
Slide 15: Talent to win
Talent to win Steve Beard Bob Phelan Dr. Karen Cox Michael Betz Dr. John Danaher, MD President and Chief Executive Chief Financial Officer Ph.D., RN, FACHE, FAAN President, Walden University President, Medical and Veterinary Officer President, Chamberlain University Blake Simpson Douglas Beck Evan T
Slide 16: A Category of One
Transformed Portfolio, Positioned Well as a Leading Healthcare Educator In a growing, structurally attractive industry with tailwinds A Category of One Creating Long-Term Value with Growth with Purpose Strategy Focused on accelerating organic total enrollment growth and efficiency As a systematicall
Slide 17: Growth with Purpose
Growth with Purpose Evan Trent Chief Strategy and Transformation Officer INVESTOR DAY 2022 A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 1 7
Slide 18: Investing in long-term, secular growth markets
Investing in long-term, secular growth markets Nursing School Physician Programs Veterinary Psychology Degree Applications Applications Applications Applications +4.7% BSN 10-yr CAGR +2.0% MD 10-yr CAGR +5.6% DVM 10-yr CAGR +11.7% Masters 7-yr CAGR +2.7% MSN 10-yr CAGR +13.5% DNP 10-yr CAGR ~680k 2.
Slide 19: Labor shortages for front-line healthcare workers at all-time highs
Labor shortages for front-line healthcare workers at all-time highs and projected to remain Nurses Physicians Veterinarians Social & Behavioral Health Professionals 200k current shortage 60k current shortage ~15k current shortage ~75k additional social work jobs are forecasted to be needed each 400k
Slide 20: Highly fragmented core markets
Highly fragmented core markets Adtalem is operating in highly- fragmented end markets Share of Degree Conferrals Nursing MD Veterinarian ~1,000 institutions ~150 Institutions ~50 Institutions No individual institution within the nursing, medical or veterinary ATGE ATGE ATGE 9% 3% Next 10 9% educatio
Slide 21: What we do has never been more important or valuable
What we do has never been more important or VALUABLE How we do, what we do, has never been more RELEVANT A CATEGORY OF ONE, addressing critical U.S. healthcare provider challenges A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 2 1
Slide 22: Labor the most significant and persistent cost increase for healthcare systems
Labor has been both the most significant and persistent cost increase for healthcare systems since the onset of the pandemic Median expense per adjusted discharge January 2019 ‒ June 2022, indexed to 2019 16% - 25% growth in healthcare supply input costs since 2019 100 2019 2020 2021 2022 Drugs Labo
Slide 23: U.S. higher education nursing programs closed at an accelerating rate
Nursing programs: Closures and planned closures 209 97 U.S. higher education nursing programs closed 2010 2021 at an accelerating rate… Nursing programs: New planned openings …as the number of new programs declined 369 308 2010 2021 Definitions and additional information can be found in the appendix
Slide 24: Vacancy rates have skyrocketed since the pandemic
Healthcare job openings and hires Thousands 2,200 2,000 1,800 1,600 Vacancy rates have 1,400 ~1.2m gap between openings skyrocketed since 1,200 and hires the pandemic 1,000 800 600 400 200 0 2012 13 14 15 16 17 18 19 20 21 22 Openings Hires A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 2 4
Slide 25: How we do, what we do, has never been more relevant
How we do, what we do, has never been more RELEVANT A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 2 5
Slide 26: Relative to an intensifying mental health crisis
Relative to an intensifying mental health crisis, accelerated by the global pandemic… A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 2 6
Slide 27: Stark inequities in health and education
…or relative to the stark inequities in health and education highlighted by post-pandemic outcomes… A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 2 7
Slide 28: Global pandemic resulting from a zoonotic disease
…or in the context of of a global pandemic resulting from a zoonotic disease jumping from animal to human… A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 2 8
Slide 29: How we do, what we do, has never been more relevant
How we do, what we do, has never been more RELEVANT A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 2 9
Slide 30: A Category of One, addressing critical U.S. healthcare provider challenges
A CATEGORY OF ONE, addressing critical U.S. healthcare provider challenges A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 3 0
Slide 31: Full breadth of healthcare programs across the learning continuum
Offering the full breadth of healthcare programs across the entire healthcare learning continuum Bachelor’s Master’s Doctoral 33% 46% 21% Social & Behavioral Post-Secondary Nursing Medical | Veterinary Sciences Other Degrees 48.4k 17.3k 3.7k | 1.6k 8.6k Current enrollees Current enrollees Current en
Slide 32: Leading positions and capacity to invest for further growth
Grantor of U.S. Provider of medical nursing degrees residents to the U.S. #1 #2 Grantor of BSN, MSN-FNP & DNP to Physician minority students Assistant Program #1 2022 Launch at Provider of Black Social & Behavioral MD graduates to the U.S. with leading positions and the capacity Sciences degrees #1
Slide 33: Innovative modalities to meet students where they learn best
Utilizing innovative modalities to meet students where, when and how they learn best ~150 ~75% Programs Programs offered online Addison Troy Chicago Tinley Park ADDISON Columbus TRO CHICAGO St. Louis Y North Brunswick Sacramento Indianapolis TINLEY Las Vegas Tysons Corner 50 Charlotte INDIANAPOL Irw
Slide 34: High-quality academic and professional outcomes at scale
Delivering high-quality academic and professional outcomes at scale with an unwavering student commitment Cohort Default Rates ~2% 9% 86% 97% 8% 7% Lower Residency attainment rate 6% Adtalem vs. national avg. USMLE for 2022 - 2023 graduates Cohort Default Rate Step 1 1st time pass rate 5% FY2020 - 2
Slide 35: Growth with Purpose
Growth with Purpose • Solidify our position as a leading provider of professional talent to the healthcare industry • Expand access to high-quality education • Further address health inequities • Underpinned by operational excellence A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 3 5
Slide 36: Growth with Purpose strategy
Growth with Purpose strategy Growth with Purpose Three-year strategic initiative focused on driving organic revenue growth Marketing Enrollment Retention Pricing Programs Dynamic Resource Streamlined enrollment Improved Student Journey Pricing Optimization New programs, Allocation process and experi
Slide 37: Underpinned by operational excellence
Underpinned by operational excellence Retention Holistic Inquiry Application Enrollment Process Alumni Centers of excellence | Personalized student platform Engaging prospective students | Student advisory | Student engagement | Alumni relations | Aligned incentives A D T A L E M : I N V E S T O R D
Slide 38: Reimagined Marketing Strategy
Reimagined Marketing Strategy Maurice Herrera Chief Marketing Officer INVESTOR DAY 2022 A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 3 8
Slide 39: A redesigned marketing function
A redesigned marketing function, poised to better serve our portfolio Elevate understanding of what our prospects need and want to hear from us Student Centric Prioritize based on the impact they can make on new student enrollment Impact Focused Test, learn and pivot based on assessing Data the effi
Slide 40: Marketing priorities
Marketing priorities Four levers and four enablers in service of new student enrollments Organic Demand Performance Media Web Experience Database Engagement Compelling content (fit for purpose) Consumer insights (segmentation, personas, prospect journeys) Advanced analytics (KPIs, return on investme
Slide 41: New brand platforms
New brand platforms are a critical component to our success Coming soon Coming soon Chamberlain Walden RUSM AUC RUSVM Belong to Set a Course Hands-on Exceptional Education. For a Special Something Greater for Change From the Start Caring Culture. Breed of Vet A D T A L E M : I N V E S T O R D A Y 2
Slide 42: Differentiated Student Experience
Differentiated Student Experience Steven Tom Chief Customer Officer INVESTOR DAY 2022 A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 4 2
Slide 43: Superior student experience, achieving the next phase of growth
Superior student experience, achieving the next phase of our growth Value Creation: Centers of Excellence | Best Practices Superior Maximizing the Impact: Student Scale | Student | Faculty | Support Experience Accelerating Velocity: New Capabilities | Experience & Outcomes A D T A L E M : I N V E S
Slide 44: Centers of Excellence
Empowering Growth with Purpose while focusing on our core customer Centers of Excellence Engagement & Career & Licensure Value Creating Persistence Preparedness Partnerships • Personalized & timely • Cross curate learning • Proprietary pipelines technology methodologies & tools for • Learning pathwa
Slide 45: Innovative AI tools enabling unique learning experiences
Innovative AI tools enabling unique learning experiences Julian: A.I. Tutor Linda: Charlotte: Digital human simulation Chatbot AA D D TT A A LL E E M : I N V E S T O R D A Y 2 0 2 3 / 4 5
Slide 46: Chamberlain University
Chamberlain University Karen Cox, PhD, RN, FACHE, FAAN President, Chamberlain University INVESTOR DAY 2022 A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 4 6
Slide 47: Maintaining position as #1 provider of nursing degrees
Maintaining position as #1 provider of nursing degrees and health-related degrees while growing market share Social Determinants of Health practice-ready graduates Specialty-focused tracks Innovative, multi-channel modalities Strong employer partnerships AA D D TT A A LL E E M : I N V E S T O R D A
Slide 48: Nation's leading nursing and healthcare university
Nation’s leading nursing and healthcare university Belong to Something Greater Chamberlain University 130+ 100k+ Founded in 1889 Years of history Alumni Largest nursing school in the U.S. >50% students from diverse backgrounds 23 34.8k Campus locations Current enrollees 73.2% four-year baccalaureate
Slide 49: BSN Online community connection
Our community connection: BSN Online students prepare online and practice on site at a partner location Live Virtual Classes Virtual Simulations Personalized Learning Platform ® Faculty-led courses allows for optimal interaction Next-generation NCLEX virtually simulated Our platform knows when a stu
Slide 50: Expansive geographic presence
23 Expansive geographic presence supporting our leading position as national partner of choice Campuses in 15 states Addison Chicago Tinley Park Troy ADDISON Columbus CHICAGO TRO 18 Sacramento Las Vegas St. Louis Indianapolis TINLEY Y North Brunswick Additional states with Charlotte INDIANAPOL Tyson
Slide 51: Premier healthcare community with over a century of academic excellence
Premier healthcare community with over a century of academic excellence Bachelor of Science Registered Nurse Master of Science in Doctor of Nursing College of Health 1 in Nursing to BSN Nursing Practice Professions 13.5k 7.5k 12.0k 1.3k ~500 current enrollees current enrollees current enrollees curr
Slide 52: Social Determinants of Learning
Future of care goes beyond preventative care: Removing Learning Barriers Social Determinants of Learning™ are more critical than ever Social Determinants of Learning™ built on the foundation of Social Determinants of Health delivering positive health outcomes Making Healthcare Education More Accessi
Slide 53: The Chamberlain Care Model
Healthcare, at its core, is about caring: Extraordinary Care. Extraordinary Nurses. Care For Colleagues The Chamberlain Care™ Model: • State-of-the-art curriculum and assessment strategy Care Care For Community For Self • Coaching teams • Workshops to support academic needs • Live content mastery re
Slide 54: American Nurses Foundation Reimagining Nursing Initiative
American Nurses Foundation (ANF): Reimagining Nursing Initiative • 1 of 10 participating institutions • Transformation of the nursing profession to focus on healthcare access, care, and outcomes Cultivating Practice Ready. Specialty Focused™ Professionals Perioperative nursing Home health nursing Ne
Slide 55: Earn to Learn
Earn to Learn We go beyond just providing “education” Partnerships with local Student receives hands-on Fostering a direct pathway healthcare-focused employers healthcare-related experience, to potential employment mentorship, and earns income upon graduation through the partner A D T A L E M : I N
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A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 5 6
Slide 57: Walden University
Walden University Michael Betz President, Walden INVESTOR DAY 2022 A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 5 7
Slide 58: Regaining Walden's leadership position
Regaining Walden’s leadership position #1 Online institution for graduate degree scholars, advancing diversity, equity and inclusion in healthcare Strong foundation Program portfolio Academic quality Student outcomes Turnaround of commercial performance Commercial excellence A new student Competitiv
Slide 59: Set A Course For Change
Set A Course For Change, pioneering digital learning for working professionals Walden University 50+ 170k+ Years of history Alumni Founded in 1970 #1 provider of Master of Science in Nursing 100% 39.4k #1 awarding research doctorates Online Current enrollees to Black students >50% students from dive
Slide 60: Comprehensive portfolio of in-demand graduate programs
Comprehensive portfolio of in-demand programs focused on graduate studies College of College of College of College of The Richard W. College of College of Nursing Social and Psychology & Health Riley College of Management Allied Health Behavioral Community Sciences & Education & & Human & Other Heal
Slide 61: Addressing the mental health crisis
Addressing the mental health crisis Counseling Helping people navigate through their life challenges Psychology Making life better for people and communities Social Work & Human Services Addressing some of the most pressing issues facing society today A D T A L E M : I N V E S T O R D A Y 2 0 2 3 /
Slide 62: Operational and commercial excellence across the student journey
Operational and commercial excellence across the full student journey Drive Walden brand awareness among the full target audience Offer the strongest student value proposition A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 6 2
Slide 63: Tempo Learning: competency-based learning
® Tempo Learning : Competency-based learning, proving a true competitive advantage Advance at Your Own Pace: The Faster You Complete Your Program, The More You Save Aligns to working professionals’ needs for speed, flexibility, and affordability Differentiates Walden programs from majority of online
Slide 64: New Believe & Achieve scholarship program
New “Believe & Achieve” scholarship program • Promotes student persistence and graduation • Scholarship structure enables significant Affordability and Accessibility reduction in total cost of degree programs for Working Professionals without reducing rack rate price • Improves program price competi
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A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 6 5
Slide 66: Medical and Veterinary
Medical and Veterinary Dr. John Danaher, MD President, Medical and Veterinary INVESTOR DAY 2022 A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 6 6
Slide 67: A leading educator for physicians and veterinarians: Medical
A leading educator for physicians and veterinarians, with a strong commitment to health equity and One Health Medical Maintain and build on quality academic outcomes Accelerate growth and achieve capacity Curricular focus on health equity A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 6 7
Slide 68: Two distinguished medical schools
Two distinguished medical schools with a strong foundation of training the next generation of medical practitioners 90+ 15.5k+ Years of combined history Alumni Both founded in 1978 3.7k 86% USMLE 1st time ✓ Achieved residencies in all pass rate major specialty areas Current enrollees 97% 1st time re
Slide 69: 15-week program preparing aspiring physicians
15-week program preparing aspiring physicians for the rigor of medical school >50% students advanced to AUC or RUSM Definitions and additional information can be found in the appendix. AA D D TT A A LL E E M : I N V E S T O R D A Y 2 0 2 3 / 6 9
Slide 70: Graduating more Black physicians
Graduate more Black physicians than any U.S. medical school in 2020 - 2021 88% of graduates practice in low-income communities of graduates practice in medically 44% underserved or health professional shortages areas (HPSA) 7% of graduates practice in rural HPSA A D T A L E M : I N V E S T O R D A Y
Slide 71: Unique AUC experience and UK partnership
Exceptional education and caring culture characterize the unique AUC experience Partnership with University of Central Lancashire Preston, UK Campus International students earn AUC MD degree; direct pathway to practice in the UK Research institution in an intimate campus setting Affiliations with so
Slide 72: A leading educator for physicians and veterinarians: Veterinary
DESIGNED A leading educator for physicians and veterinarians, with a strong commitment to health equity and One Health Veterinary Maintain our market-leading position Connect with future veterinarians by living & teaching One Health Leverage our immersive experience, campus, research capabilities, a
Slide 73: A Special Breed of Vet
A Special Breed of Vet™, at a top AVMA accredited veterinary school Founded in 1982 40+ 6k Year history Alumni >33% of graduates from minority backgrounds Access to a broad range of terrestrial, exotic, and aquatic animals 1.6k Current enrollees >75% of students are women Significant AVMA alumni bod
Slide 74: Maximizing Long-Term Value
Maximizing Long-Term Value Bob Phelan Chief Financial Officer INVESTOR DAY 2022 A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 7 4
Slide 75: Systematically Important to U.S. Healthcare System
Systematically Growth with Operational Important to U.S. Purpose Driving Effectiveness Healthcare System Enrollment A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 7 5
Slide 76: Significant progress against strategic transformation
Significant progress achieved against our strategic transformation, repositioned for growth Funding our ability to sustainably invest in future growth opportunities through an efficient Realization of the full operational foundation potential of the current enterprise at scale Clear strategy to achi
Slide 77: Strengthened foundation for sustainable long-term growth
Strengthened foundation, positioning us for sustainable long-term growth Operational Effectiveness Financial Strength Capital Deployment 24% 24% $227m 22% $129m $133m $942m Debt reduction since Q1 FY ‘22 FY ‘21 FY ‘22 Q3 ‘23 YTD FY ‘21 FY ‘22 Q3 FY ‘23 TTM 1 1 Adj. EBITDA margin Generating Free Cash
Slide 78: Realizing the full potential of our institutions
Focusing on our expertise and competitive advantages to realize the full potential of our institutions $ millions Revenue Adj. EBITDA1 $1,400 - $1,450 $329 $1,382 $899 $196 FY ‘21 FY ‘22 FY ‘23 FY ‘21 FY ‘22 Guidance Walden acquisition Synergy cost capture (FY ‘22 & FY ‘23): $60m Improved persistenc
Slide 79: Reaffirming FY 2023 Guidance
Reaffirming FY 2023 Guidance Underlying Themes Improving trend for total enrollment Revenue $1,400m - $1,450m Enhanced student outcomes Adj. EPS 1 $4.05 - $4.20 Continued cost discipline Capital deployment Solid Year to Date Q3 FY ‘23 Results 1. Reconciliations to Non-GAAP Financial Measures and def
Slide 80: Entering our next phase: long-term durable growth
Entering our next phase: long-term durable growth Short-term investments in brand and student experience generating a high ROI through long- Realization of the full term durable total potential of the current enterprise at scale enrollment growth and Clear strategy to achieve FY ‘25 -> FY ‘26+ opera
Slide 81: Introducing FY 2024 Guidance
Introducing FY 2024 Guidance Underlying Themes Modest revenue growth Revenue $1,460m - $1,520m Maintain Adj. EBITDA1 margin profile Adj. EPS 1 $4.15 - $4.40 Investments in organic growth Continued strong cash flow and active capital deployment 1. Reconciliations to Non-GAAP Financial Measures and de
Slide 82: Path to achieve our full financial potential by FY 2026
Path to achieve our full financial potential by FY 2026 1 2 3 4 Utilizing existing Growth with Purpose Long-term margin Accretive investments capacity at our market strategy driving expansion through and disciplined capital leading institutions and total student operational effectiveness allocation
Slide 83: Driving solid revenue growth
Driving solid revenue growth FY 2026 FY 2025 +5% to +8% FY 2024 +4% to +6% $1,460m - $1,520m A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 8 3
Slide 84: Operational leverage amplifies Adj. EPS
Operational leverage amplifies Adj. EPS1 FY 2026 FY 2025 +13% to +18% FY 2024 +10% to +15% +100 bps Adj. EBITDA 1 margin expansion $4.15 - $4.40 +100 bps Adj. EBITDA 1 margin expansion 1 ~flat Adj. EBITDA margin 1. Reconciliations to Non-GAAP Financial Measures and definitions can be found in the ap
Slide 85: 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 Execution of the remaining $252m against our Board-authorized $300m share repurchase program through February 2025 Financial
Slide 86: Purpose Driven Organization, Driving Long-term Shareholder Value
Purpose Driven Driving Long-term Organization Shareholder Value A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 8 6
Slide 87: Closing Remarks
Closing Remarks Steve Beard President and Chief Executive Officer INVESTOR DAY 2022 A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 8 7
Slide 88: A Category of One
Transformed Portfolio, Positioned Well as a Leading Healthcare Educator In a growing, structurally attractive industry with tailwinds A Category of One Creating Long-Term Value with Growth with Purpose Strategy Focused on accelerating organic total enrollment growth and efficiency as a systematicall
Slide 89: 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 Systematically important component of the U.S. healthcare system, training care providers A D T A L E M : I N V E S T O R D A Y
Slide 90: Appendix
Appendix A D T A L E M : I N V E S T O R D A Y 2 0 2 3 / 9 0
Slide 91: 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 92: Non-GAAP free cash flow
Non-GAAP free cash flow Year ended Year ended Twelve months ended Adtalem Global Education: June 30, 2021 June 30, 2022 March 31, 2023 Net cash provided by (used in) operating activities-continuing operations (GAAP) $ 168,760 $ 164,002 $ 255,052 Capital expenditures (39,881) (31,054) (27,861) Free c
Slide 93: Non-GAAP adjusted EBITDA
Non-GAAP adjusted EBITDA Year Ended Year Ended Nine Months Ended June 30, 2021 June 30, 2022 March 31, 2023 Adtalem Global Education: Net income (loss) attributable to Adtalem (GAAP) $ 70,027 $ 310,991 $ 71,114 Net (income) loss from discontinued operations attributable to Adtalem (6,579) (346,946)
Slide 94: Non-GAAP net leverage disclosure
Non-GAAP net leverage disclosure (unaudited) (in thousands) Twelve Months Ended March 31, 2023 Adtalem Global Education: Net income (GAAP) $ 77,860 Net income from discontinued operations 1,479 Interest expense 67,247 Other income, net (1,974) Provision for income taxes 29,964 Depreciation and amort
Slide 95: Subsequent definitions & footnotes
Subsequent definitions & footnotes: Adtalem by the numbers slide #9: • USMLE: First-time pass rate is the number of students passing the USMLE step 1 exam on the first attempt divided by the number of students whose first attempt was in 2020 - 2022. In order to sit for the USMLE step 1 exam students