Covista Inc. · NYSE:CVSA
Covista — Adtalem Global Education — Q2 2025 Earnings Presentation
25 slides from Covista's earnings presentation, Jan 30, 2025
Slide 1: Second Quarter 2025 Earnings
Second Quarter 2025 Earnings JANUARY 30, 2025 ©2025 Adtalem Global Education Inc. All rights reserved
Slide 2: Safe Harbor
Safe CAUTIONARY DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS Certain statements contained in this presentation 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 certa
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
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 >91k students ~90% of student enrollment capabilities ~150 programs1 is healthcare focused As of December 31, 2024 A D T A L E M : S e c o n d Q u a r t e r 2 0
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 5 R e s u l t s / 5 ©2025 Adt
Slide 6: Q2 2025 Performance
Q2 2025 Performance Total enrollment growth YoY: +11.6% $447.7 million 27.9% 1 $1.81 1 Revenue Adj. EBITDA margin Adj. EPS +13.9% vs. prior year +440 bps vs. prior year +47.2% vs. prior year Growth with Purpose delivering accelerated total enrollment and operational excellence • Chamberlain: 39.7k s
Slide 7: Q2 2025 Highlights
Q2 2025 Highlights 1 Revenue & Adj. EPS ahead of expectations ▪ Sixth straight quarter of total enrollment YoY growth with sequential improvement, third straight quarter of double-digit percentage growth YoY ▪ Operational excellence focus, enhanced academic outcomes, maintained high persistence Fina
Slide 8: Accelerating Total Enrollment Trends
Accelerating Total Enrollment Trends Chamberlain: eighth straight quarter of YoY total enrollment growth in pre-licensure & post-licensure programs Walden: sixth straight quarter of YoY total enrollment growth Continue to deliver enhanced student outcomes, maintained high persistence levels Total en
Slide 9: Enterprise Performance
Enterprise Performance Growth with Purpose strategy improving key areas of value creation Revenue growth and efficiencies generating operational leverage Operational leverage greater than increased level of investments Q2 ‘25 Q2 ‘24 ∆ vs. Q2 ‘24 Total Enrollment +11.6% $ in Millions, except per shar
Slide 10: Chamberlain Performance
Chamberlain Performance Growth driven by post-licensure & pre-licensure nursing programs Higher persistence Q2 ‘25 Q2 ‘24 ∆ vs. Q2 ‘24 $ in Millions Total Enrollment +11.5% Revenue $181.0 $153.6 +17.9% • Growth in post-licensure & pre-licensure nursing programs 1 Adj. EBITDA $52.6 $36.9 +42.5% 1 Adj
Slide 11: Walden Performance
Walden Performance Robust total enrollment growth & continued strength in new enrollment demand High persistence Q2 ‘25 Q2 ‘24 ∆ vs. Q2 ‘24 $ in Millions Total Enrollment +13.2% Revenue $171.3 $146.8 +16.7% • Growth in healthcare & non-healthcare programs 1 Adj. EBITDA $52.1 $34.6 +50.2% 1 Adj. EBIT
Slide 12: Medical & Veterinary Performance
Medical & Veterinary Performance Vet maintaining leading position Med operational remediation plans on-track, visibility to return to total enrollment growth Q2 ‘25 Q2 ‘24 ∆ vs. Q2 ‘24 $ in Millions Total Enrollment (0.7)% Revenue $95.4 $92.9 +2.8% • Q2 ‘25 doesn’t include a new enrollment period; t
Slide 13: Cash Flow
Cash Flow Continued healthy cash generation and disciplined capital allocation $ in Millions Trailing Twelve Months $233 $239 $243 $232 $189 Q2 ‘24 Q3 ‘24 Q4 ‘24 Q1 ‘25 Q2 ‘25 1 Operating Cash Flow $228 $277 $288 $292 $282 Capital Expenditure ($39) ($44) ($49) ($49) ($50) 2 Free Cash Flow $189 $233
Slide 14: FY 2025 Guidance
FY 2025 Guidance Raising Revenue and Adj. EPS Outlook Underlying Themes Revenue growth higher in 1H ‘25 vs. 2H ‘25 Revenue $1,730m - $1,760m Greater than +100 bps adj. EBITDA margin expansion Adj. EPS 1 $6.10 - $6.30 Operational leverage greater than investments in organic growth Continued strong ca
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 durable demand trends Creating Long-Term Value with Growth with Purpose Strategy Focused on accelerating organic total enrollment growth and efficiency A systemically important
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 $140 million remaining on our Board-authorized $300 million share repurchase program 1 through January 2027 Financial Streng
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 5 R e s u l t s / 1 7 ©2025 Adtalem Global Education Inc. All rights reserved
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
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) 2024 2023 $ % 2024 2023 $ % Chamberlain: Operating income (GAAP) $ 42,226 $ 29,640 $ 12,586 42.5 % $ 68,200 $ 53,96
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) 2024 2023 $ % 2024 2023 $ % Home Office: Operating loss (GAAP) $ (8,717) $ (14,646) $ 5,929 40.5 % $ (18,961) $ (27
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) 2024 2023 $ % 2024 2023 $ % Chamberlain: Operating income (GAAP) $ 42,226 $ 29,640 $ 12,586 42.5 % $ 68,200 $ 53,964 $
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) 2024 2023 $ % 2024 2023 $ % Home Office: Operating loss (GAAP) $ (8,717) $ (14,646) $ 5,929 40.5 % $ (18,961) $ (27,07
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, 2024 2023 2024 2023 Net income (GAAP) $ 75,856 $ 39,891 $ 122,021 $ 50,537 Restructuring expense 322 68 2,416 744 Business integration expense — 6,909 — 12,171
Slide 24: Non-GAAP Free Cash Flow Disclosure
Non-GAAP Free Cash Flow Disclosure (unaudited) (in thousands) Twelve Months Ended FY24 FY24 FY24 FY25 FY25 Q2 Q3 Q4 Q1 Q2 Net cash provided by (used in) operating activities-continuing operations (GAAP) $ 227,600 $ 276,843 $ 288,367 $ 291,820 $ 281,971 Capital expenditures (38,713) (44,137) (48,893)
Slide 25: Non-GAAP Net Leverage Disclosure
Non-GAAP Net Leverage Disclosure (unaudited) (in thousands) Twelve Months Ended December 31, 2024 Adtalem Global Education: Net income (GAAP) $ 208,261 Income from discontinued operations (2,799) Interest expense 59,700 Other income, net (9,646) Provision for income taxes 48,840 Depreciation and amo
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