Covista Inc. · NYSE:CVSA
Covista — Adtalem Global Education — Q1 2020 Earnings Presentation
20 slides from Covista's earnings presentation, Oct 29, 2019
Slide 1: Q1 2020 Earnings Presentation
Q1 2020 Earnings Presentation October 29 th, 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: Lisa Wardell
Lisa Wardell Chairman and Chief Executive Officer
Slide 4: Divestiture of Brazil Assets
Divestiture of Brazil Assets • On October 21, we announced the sale of our assets in Brazil, including Wyden, Damàsio, and Ibmec, to Brazilian secondary education provider YDUQS • This strategic transaction helps better address the global workforce skills gap, reduces portfolio risk, and further str
Slide 5: Q1 2020 Highlights
Q1 2020 Highlights Announced divestiture of Brazil assets, repositioning corporate portfolio $254.6 million Revenue $18.9 million Capitalized on strong demand to deliver revenue growth across both verticals Net Income1 $0.34 Adjusted Earnings Per Share1 Appointed Mike Randolfi as new Chief Financial
Slide 6: Medical & Healthcare
Medical & Healthcare Revenue growth across vertical driven by Chamberlain programs and RUSM housing revenue • Chamberlain University: - Grew both revenue and enrollments - Successful launch of Master of Social Work program - Increased Las Vegas campus size and began classes at San Antonio campus - C
Slide 7: Financial Services
Financial Services Strong revenue growth driven by outperformance in ACAMS and addition of OCL • Becker: - Launch of new website and e-commerce platform - Paid media conversion rate up 36%, social media conversion rate increased 117% • ACAMS: - Successful Las Vegas conference saw record attendance,
Slide 8: Mike Randolfi
Mike Randolfi Senior Vice President and Chief Financial Officer
Slide 9: Q1 2020 Pro-Forma Results
Q1 2020 Pro-Forma Results Q1 2020 results Q1 2020 results Q1 2020 results Key Metrics (continuing operations, excluding (prior to Brazil divestiture) (Brazil only) special items) Revenue $300.3 million $45.7 million $254.6 million Gross Profit $138.3 million $11.7 million $126.6 million Operating In
Slide 10: Q1 2020 Year-over-Year Comparison
Q1 2020 Year-over-Year Comparison Q1 2019 results Q1 2020 results Year-over-Year % Key Metrics (continuing operations) (continuing operations) Change Revenue $236.9 million $254.6 million 7.5% Gross Profit $125.4 million $126.6 million 0.9% Operating Income1 $36.2 million $27.5 million (24.1%) Earni
Slide 11: Q1 2020 Financial Highlights
Q1 2020 Financial Highlights Revenue $255 ($ in millions) • Revenue growth across both verticals $237 7.5% boosted by OnCourse Learning acquisition, ACAMS timing of Las Vegas conference $330.0 million Revenue Q1 2019 Q1 2020 1 $36 Operating Income ($ in millions) $27 -24.1% • Operating income declin
Slide 12: Q1 2020 Financial Highlights by Segment
Q1 2020 Financial Highlights by Segment Revenue ($M) Operating Profit1 ($M) Medical & Healthcare • Revenue growth driven by • Operating income declined due student housing offerings at to increased marketing and RUSM and higher recruiting expenses, cost of 2.7% enrollment fees at expansion and growt
Slide 13: Normalizing YoY OI for corporate allocation change from Brazil transaction
Normalizing YoY OI for corporate allocation change from Brazil transaction Key Metrics Medical & Healthcare Financial Services OI OI margin OI OI Margin 1Q 2019 OI as reported $40.7 20.1% 4.8 13.3% Additional corp. allocation (2.9) (1.4 ) pts (0.5) (1.5) pts Adjusted 1Q 2019 to reflect 37.8 18.7% 4.
Slide 14: Sustainable Free Cash Flow Generation
Sustainable Free Cash Flow Generation Key Metrics Q1 2020 Results $250 Operating Cash Flow $33.3 million Free Cash Flow $22.9 million ($72) From continuing operations, excluding special items ($125) ($125) ($163) Note: Free cash flow is a non-GAAP financial measure defined as net cash provided by (u
Slide 15: Liquidity and Capital Structure
Liquidity and Capital Structure Capital Structure / Net Debt Key Metrics June 30, 2019 Sept. 30, 2019 $121 million Cash, cash equivalents4 $204 million ($210 million1) Undrawn revolver $122 million $192 million Total Debt $407 million $336 million Capex4 $12 million2 $10 million3 Share repurchases $
Slide 16: FY 2020 Guidance
FY 2020 Guidance Key Metrics FY20 Guidance Revenue 5% to 7% growth compared with FY 2019 Effective income tax rate1 19% to 20% CapEx1 $45 to $50 million Earnings per Share1 7% to 9% growth compared with FY 2019 1) From continuing operations, excluding special items ©2019 Adtalem Global Education Inc
Slide 17: Appendix
Appendix ADTALEM
Slide 18: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables ADTALEM GLOBAL EDUCATION INC. NON-GAAP EARNINGS DISCLOSURE (unaudited) Three Months Ended September 30, 2019 2018 (in thousands, except per share amounts) Net Income (Loss) $ 14,361 $ (9,530) Earnings (Loss) per Share (diluted-2019, basic-2018) $ 0.26 $ (0.16) Continui
Slide 19: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables Key Metrics Q1 2020 Results Operating Cash Flow (GAAP measure) $33.3 million Capital Expenditures $10.4 million Free Cash Flow (Non-GAAP measure) $22.9 million From continuing operations, excluding special items ©2019 Adtalem Global Education Inc. All rights reserved.
Slide 20: 2019 operating income for continuing operations
2019 operating income for continuing operations FY19 adjusted for continuing operations (in thousands except EPS) 1Q 2Q 3Q 4Q FY’19 Total Revenue $236,939 $253,961 $258,703 $264,240 $1,013,843 Operating Income1 $36,241 46,633 $47,765 $52,080 $182,719 EPS1 $0.44 $0.57 $0.64 $0.66 $2.29 1) From contin
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