Covista Inc. · NYSE:CVSA

Covista — Adtalem Global Education — Q4 2024 Earnings Presentation

26 slides from Covista's earnings presentation, Aug 6, 2024

  1. Slide 1: Fourth Quarter & Full Year 2024 Earnings

    Fourth Quarter & Full Year 2024 Earnings August 6, 2024 ©2024 Adtalem Global Education Inc. All rights reserved

  2. 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

  3. 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 : F o u r t h Q u a r t e

  4. Slide 4: Institutions, campuses and online delivery

    5 like-kind institutions All post-secondary higher All with a center of gravity in education healthcare 27 campuses >83k students ~90% of student enrollment Robust online delivery capabilities ~150 programs1 is healthcare focused As of June 30, 2024 1) Programs = degree and certificate programs A D

  5. 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 : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 4 R e s u l

  6. Slide 6: FY 2024 Performance

    FY 2024 Performance Growth with Purpose driving operational excellence, yielding strong revenue and earnings growth with robust cash generation $1,585 million 23.8%1 $5.01 1 Revenue Adj. EBITDA margin Adj. EPS +9.2% vs. prior year +10 bps vs. prior year +19.0% vs. prior year Financial strength & dis

  7. Slide 7: Q4 2024 Performance

    Q4 2024 Performance Total enrollment growth YoY: +10.0% $410 million 23.8% 1 $1.37 1 Revenue Adj. EBITDA margin Adj. EPS +12.4% vs. prior year +100 bps vs. prior year +33.0% vs. prior year Growth with Purpose delivering enterprise total enrollment growth & operational leverage • Chamberlain: 36.8k s

  8. Slide 8: Highlights

    Highlights 1 FY 2024: Revenue & Adj. EPS ahead of expectations ▪ Total enrollment YoY growth sequentially improved throughout FY 2024, ending Q4 ‘24 up +10.0% YoY ▪ Operational execution focus, enhanced student experiences, maintained high persistence Making an outsized impact on U.S. healthcare ▪ L

  9. Slide 9: Accelerating Total Enrollment Trends

    Accelerating Total Enrollment Trends Chamberlain: sixth straight quarter of YoY total enrollment growth Walden: fourth straight quarter of YoY total enrollment growth Med/Vet: third straight enrollment cycle of sequentially improved YoY total enrollment trends Continue to deliver enhanced student ou

  10. Slide 10: Enterprise Performance

    Enterprise Performance Growth with Purpose strategy improving key areas of value creation Revenue growth and efficiencies generating operational leverage Optimally balancing increased level of investments $ in Millions Q4 ‘24 ∆ vs. Q4 ‘23 2024 ∆ vs. 2023 Total Enrollment +10.0% vs. Q4 ‘23 • Improvem

  11. Slide 11: Chamberlain Performance

    Chamberlain Performance Growth driven by post-licensure & pre-licensure nursing programs High persistence Q4 ‘24 ∆ vs. Q4 ‘23 2024 ∆ vs. 2023 $ in Millions Total Enrollment +10.4% vs. Q4 ‘23 Revenue $167.0 +15.6% $633.5 +10.9% • Growth in post-licensure & pre-licensure nursing programs 1 Adj. EBITDA

  12. Slide 12: Walden Performance

    Walden Performance Robust total enrollment growth & continued strength in new enrollment demand High persistence Q4 ‘24 ∆ vs. Q4 ‘23 2024 ∆ vs. 2023 $ in Millions Total Enrollment +11.3% vs. Q4 ‘24 Revenue $156.3 +13.3% $595.3 +11.5% • Growth in healthcare & non-healthcare programs 1 Adj. EBITDA $41

  13. Slide 13: Medical & Veterinary Performance

    Medical & Veterinary Performance Vet maintaining leading position Med operational remediation plans delivering sequential improvement in total enrollment YoY Q4 ‘24 ∆ vs. Q4 ‘23 2024 ∆ vs. 2023 $ in Millions Total Enrollment (2.9)% vs. Q4 ‘24 Revenue $86.6 +5.4% $355.8 +2.8% • Vet: RUSVM operating a

  14. Slide 14: Cash Flow Trailing Twelve Months

    Cash Flow Continued healthy cash generation and disciplined capital allocation $ in Millions Trailing Twelve Months $239 $233 $169 $189 $158 Q4 ‘23 Q1 ‘24 Q2 ‘24 Q3 ‘24 Q4 ‘24 1 Operating Cash Flow $195 $189 $228 $277 $288 Capital Expenditure $(26) $(31) $(39) $(44) $(49) 2 Free Cash Flow $169 $158

  15. Slide 15: FY 2025 Guidance

    FY 2025 Guidance Exceeds June 2023 Investor Day Growth Targets Underlying Themes Revenue $1,660m - $1,700m Revenue growth slightly higher in 1H ‘25 vs. 2H ‘25 YoY approx. growth 5% 7.5% Investments weighted to 1Q ‘25 1 +100 bps adj. EBITDA margin expansion Adj. EPS 1 $5.60 - $5.85 YoY approx. growth

  16. Slide 16: A systemically important component of the U.S. healthcare system

    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

  17. Slide 17: 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 $212 million remaining on our Board-authorized $300 million share repurchase program 1 through January 2027 Financial Streng

  18. Slide 18: Appendix

    Appendix A D T A L E M : F o u r t h Q u a r t e r & F u l l Y e a r 2 0 2 4 R e s u l t s / 1 8 ©2024 Adtalem Global Education Inc. All rights reserved

  19. Slide 19: 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

  20. Slide 20: Non-GAAP Adjusted Operating by Segment Disclosure (1/2)

    Non-GAAP Adjusted Operating by Segment Disclosure (1/2) (unaudited) (in thousands) Three Months Ended Year Ended June 30, June 30, Increase/(Decrease) Increase/(Decrease) 2024 2023 $ % 2024 2023 $ % Chamberlain: Operating income (GAAP) $ 40,487 $ 35,683 $ 4,804 13.5 % $ 137,800 $ 134,685 $ 3,115 2.3

  21. Slide 21: Non-GAAP Adjusted Operating by Segment Disclosure (2/2)

    Non-GAAP Adjusted Operating by Segment Disclosure (2/2) (unaudited) (in thousands) Three Months Ended Year Ended June 30, June 30, Increase/(Decrease) Increase/(Decrease) 2024 2023 $ % 2024 2023 $ % Home Office: Operating loss (GAAP) $ (13,945) $ (16,412) $ 2,467 15.0 % $ (68,990) $ (62,044) $ (6,94

  22. Slide 22: Non-GAAP Adjusted EBITDA by Segment Disclosure (1/2)

    Non-GAAP Adjusted EBITDA by Segment Disclosure (1/2) (unaudited) (in thousands) Three Months Ended Year Ended June 30, June 30, Increase/(Decrease) Increase/(Decrease) 2024 2023 $ % 2024 2023 $ % Chamberlain: Operating income (GAAP) $ 40,487 $ 35,683 $ 4,804 13.5 % $ 137,800 $ 134,685 $ 3,115 2.3 %

  23. Slide 23: Non-GAAP Adjusted EBITDA by Segment Disclosure (2/2)

    Non-GAAP Adjusted EBITDA by Segment Disclosure (2/2) (unaudited) (in thousands) Three Months Ended Year Ended June 30, June 30, Increase/(Decrease) Increase/(Decrease) 2024 2023 $ % 2024 2023 $ % Home Office: Operating loss (GAAP) $ (13,945) $ (16,412) $ 2,467 15.0 % $ (68,990) $ (62,044) $ (6,946)

  24. Slide 24: Non-GAAP Earnings Disclosure

    Non-GAAP Earnings Disclosure (unaudited) (in thousands, except per share data) Three Months Ended Year Ended June 30, June 30, 2024 2023 2024 2023 Net income (GAAP) $ 49,419 $ 22,244 $ 136,777 $ 93,358 Restructuring expense 653 1,111 1,870 18,817 Business acquisition and integration expense 3,594 6,

  25. Slide 25: Non-GAAP Free Cash Flow Disclosure

    Non-GAAP Free Cash Flow Disclosure (unaudited) (in thousands) Twelve Months Ended FY23 FY24 FY24 FY24 FY24 Q4 Q1 Q2 Q3 Q4 Net cash provided by operating activities- continuing operations (GAAP) $ 194,690 $ 189,501 $ 227,600 $ 276,843 $ 288,367 Capital expenditures (26,014) (31,070) (38,713) (44,137)

  26. Slide 26: Non-GAAP Net Leverage Disclosure

    Non-GAAP Net Leverage Disclosure (unaudited) (in thousands) Year Ended June 30, 2024 Adtalem Global Education: Net income (GAAP) $ 136,777 Net loss from discontinued operations 936 Interest expense 63,659 Other income, net (10,542) Provision for income taxes 26,224 Depreciation and amortization 78,4

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