Covista Inc. · NYSE:CVSA
Covista — Adtalem Global Education — Q2 2023 Earnings Presentation
17 slides from Covista's earnings presentation, Feb 2, 2023
Slide 1: Second Quarter 2023 Earnings Presentation
Second Quarter 2023 Earnings Presentation February 2, 2023 Confi dential
Slide 2: Safe Harbor
Safe Harbor 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 assumptions and include any
Slide 3: Q2 2023 Enterprise Performance
Q2 2023 Enterprise Performance Continued margin expansion supported by solid operational execution $363 million 25.4% $1.17 Q2 Revenue Q2 Adj. EBITDA1 Margin Q2 Adj. EPS1 2% decrease vs. prior year 220 bps expansion vs. prior 56% growth vs. prior year year Ongoing stabilization in total Thoughtful c
Slide 4: Enterprise Highlights
Q2 FY 2023 RESULTS Enterprise Highlights ✓ Driving progress on strategic positioning ▪ Continuing to grow into new operating model, maximizing operational effectiveness across our institutions ▪ Executing on transformation initiatives designed to accelerate performance across critical, value-creatin
Slide 5: Enterprise Performance
Q2 FY 2023 RESULTS Enterprise Performance Year-over-year margin expansion driven by disciplined operational focus and synergy realization $ millions Q2 2023 Q2 2022 Change Total Enrollment down 4.1% driven primarily by Walden Revenue $363.3 $371.2 (2.1)% Adj. EBITDA1 margin increased 220 bps driven
Slide 6: Chamberlain Performance
Q2 FY 2023 RESULTS Chamberlain Performance Continued margin expansion driven by increased revenue and benefit of cost synergy initiatives $ millions Q2 2023 Q2 2022 Change Total Enrollment down <1% due to growth in pre-licensure nursing programs offset by declines in post-licensure programs Revenue
Slide 7: Walden Performance
Q2 FY 2023 RESULTS Walden Performance Total enrollment impacted by headwinds faced by post-licensure nursing programs $ millions Q2 2023 Q2 2022 Change Total Enrollment down 7.8% due to Revenue $131.9 $140.6 (6.2)% headwinds faced by post-licensure nursing programs Adj. EBITDA1 $31.6 $35.7 (11.5)% A
Slide 8: Medical & Veterinary Performance
Q2 FY 2023 RESULTS Medical & Veterinary Performance Increased persistence and operational execution supporting margin expansion $ millions Q2 2023 Q2 2022 Change Total Enrollment up 3.4% driven by growth in new enrollment and persistence during the Revenue $90.0 $91.5 (1.6)% most recent enrollment p
Slide 9: Free Cash Flow
Q2 FY 2023 RESULTS Free Cash Flow Driving improved cash generation Q2 – Three Months Trailing Twelve Months ($ millions) ($ millions) Q2 2023 Q2 2022 $199 $196 $133 $68 $57 ($53) ($57) Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Operating Cash Flow ($49) ($49) $225 $226 $164 $102 $92 Capital Expenditure
Slide 10: Appendix
Appendix ADTALEM ATION
Slide 11: 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 underly ing business trends and performance of Adtalem’s ongoing operations as seen through the eyes of management and are useful f
Slide 12: Historical Q2 Total Enrollment Trends
Historical Q2 Total Enrollment Trends 45,272 43,841 41,158 37,956 34,387 33,648 33,390 31,215 Q2 2020 Q2 2021 Q2 2022 Q2 2023 1 Walden Chamberlain 1. Q2 2020 and Q2 2021 Walden enrollment f igures are calculated by Walden while owned by Laureate Education, Inc., and are 12 included here f or compara
Slide 13: 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) 2022 2021 $ % 2022 2021 $ % Chamberlain: Operating income (GAAP) $ 33,229 $ 25,456 $ 7,773 30.5 % $ 59,413 $ 46,311 $
Slide 14: 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) 2022 2021 $ % 2022 2021 $ % Chamberlain: Home Office and Other: Operating income (GAAP) $ 33,229 $ 25,456 $ 7,773 30.5
Slide 15: 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, 2022 2021 2022 2021 Net income (loss) (GAAP) $ 24,144 $ 17,853 $ 26,336 $ (40,151) Deferred revenue adjustment — 2,354 — 8,561 CEO transition costs — — — 6,195
Slide 16: Non-GAAP Free Cash Flow Disclosure
Non-GAAP Free Cash Flow Disclosure (unaudited) (in thousands) Three Months Ended Twelve Months Ended FY23 FY22 FY23 FY23 FY22 FY22 FY22 FY22 Q2 Q2 Q2 Q1 Q4 Q3 Q2 Q1 Net cash (used in) provided by operating activities- continuing operations (GAAP) $ (49,248) $ (48,474) $ 225,069 $ 225,843 $ 163,825 $
Slide 17: Non-GAAP Net Leverage Disclosure
Non-GAAP Net Leverage Disclosure (unaudited) (in thousands) Twelve Months Ended December 31, 2022 Adtalem Global Education: Net income (GAAP) $ 384,192 Net income from discontinued operations (346,408) Interest expense 89,375 Other income, net (1,074) Benefit from income taxes 20,828 Depreciation an
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