Covista Inc. · NYSE:CVSA
Covista — Adtalem Global Education — Q1 2022 Earnings Presentation
22 slides from Covista's earnings presentation, Nov 3, 2021
Slide 1: First Quarter 2022 Earnings Presentation
First Quarter 2022 Earnings Presentation November 3, 2021
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: Q1 2022 Highlights
Q1 2022 Highlights Delivered Q1 revenue and operating income within expectations, while new student enrollments returned to more historical enrollment trends Q1 2022 • Made significant progress toward key initiatives in Q1, building on our Revenue1 fiscal year 2021 strategic plan and driving growth
Slide 4: Chamberlain
Chamberlain Revenue growth in Q1; headwinds expected to subside over time as demand for nurses continues to outpace supply over the long term Segment Highlights: - New and total student enrollment in September 2021 session decreased 13.4% and 2.8%, respectively, due to a challenging comparison to th
Slide 5: Walden
Walden Integration moving forward as planned; remain on track to realize $60 million of synergies in the first two years of ownership Segment Highlights: - New and total student enrollment during the quarter decreased 15.5% and 5.5%, respectively, due to a challenging comparison to strong new studen
Slide 6: Medical & Veterinary
Medical & Veterinary Experiencing some near-term headwinds associated with return to campus this fall Segment Highlights: - New and total student enrollment in September session decreased 4.6% and 6.9%, respectively - The decrease in enrollment was primarily driven by RUSM, due to the impact the sur
Slide 7: Financial Services
Financial Services Strong growth continued in Q1; increases in revenue in each of the three main businesses Exploration of Strategic Alternatives: - Process is underway and proceeding well; level of interest is extremely high - Confident in ability to execute a strategy that unlocks significant valu
Slide 8: Q1 2022 P&L Highlights
Q1 2022 P&L Highlights Revenue1 (in millions) $348.3 +29.9% $268.2 Delivered revenue and operating income2 Q1 2021 Q1 2022 within expectations Operating Income2 (in millions) $54.6 $54.4 +0.4% Reaffirming our full-year revenue and earnings Q1 2021 Q1 2022 guidance $0.78 Diluted EPS2 -20.5% $0.62 Q1
Slide 9: Q1 2022 Chamberlain Performance
Q1 2022 Chamberlain Performance Revenue ($M) Operating Income ($M) +1.4% -30.9% 30.2 133.8 135.6 20.9 Q1 2021 Q1 2022 Q1 2021 Q1 2022 • Q1 2022 revenue increased 1.4% to $135.6 million • Operating income declined 30.9% to $20.9 million, primarily due to increased investments in marketing and higher
Slide 10: Q1 2022 Walden Performance
Q1 2022 Walden Performance Revenue ($M) Operating Income1 ($M) 68.6 11.0 N.A. N.A. Q1 2021 Q1 2022 Q1 2021 Q1 2022 - Revenue was $68.6 million this quarter - Operating income1, excluding special items, was $11.0 million 1) From continuing operations excluding special items ©2021 Adtalem Global Educa
Slide 11: Q1 2022 Med & Vet Performance
Q1 2022 Med & Vet Performance Revenue ($M) Operating Income ($M) -0.3% -31.4% 85.1 84.8 22.8 15.7 Q1 2021 Q1 2022 Q1 2021 Q1 2022 • Q1 revenue essentially flat year over year • Operating income decrease primarily the result of higher costs related to a return to campus ©2021 Adtalem Global Education
Slide 12: Q1 2022 Financial Services Performance
Q1 2022 Financial Services Performance Revenue ($M) Operating Income1 ($M) +19.9% +54.8% 59.3 13.4 49.4 8.7 Q1 2021 Q1 2022 Q1 2021 Q1 2022 • Revenue growth driven by increases at ACAMS, OnCourse Learning and Becker • Operating income1 increase driven primarily by higher revenue 1) From continuing o
Slide 13: Q1 Free Cash Flow
Q1 Free Cash Flow Free Cash Flow ($M) Increase/ 1Q 2022 1Q 2021 (Decrease) Operating Cash Flow $40.9 $84.7 $(43.7) Capital Expenditures (7.3) (14.4) (7.1) Free Cash Flow $33.6 $70.2 $(36.6) Free cash flow is a non-GAAP financial measure defined as net cash provided by continuing operations less capi
Slide 14: Outlook
Outlook Reaffirmed previous guidance for FY 2022 revenue1 and diluted EPS1 growth REVENUE1 ADJUSTED EARNINGS PER SHARE1 $1,685 million-$1,735 million $4.20 - $4.45 1) From continuing operations excluding purchasing accounting adjustments and special items ©2021 Adtalem Global Education Inc. All righ
Slide 15: Q&A
Q&A ADTALEM par ED
Slide 16: Appendix
Appendix ADTALEM
Slide 17: 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 and are useful for period-over-period comparisons. We us
Slide 18: Enrollment
Enrollment 1Q 2022 1Q 2021 % Change Adtalem Global Education Student Enrollments(1) New students 14,778 17,210 -14.1% Total students 84,874 88,861 -4.5% Chamberlain University September Session New students 5,487 6,333 -13.4% Total students 34,539 35,525 -2.8% July Session(2) New students 2,810 2,76
Slide 19: Operating Income by Segment
Operating Income by Segment Adtalem Global Education Inc. Non-GAAP Operating Income by Segment (unaudited) (in thousands) Three Months Ended September 30, Increase 2021 2020 (Decrease) Chamberlain: Operating income (GAAP) $ 20,855 $ 30,169 (30.9)% Operating income excluding special items (non-GAAP)
Slide 20: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables Adtalem Global Education Inc. Non-GAAP Earnings Disclosure (unaudited) (in thousands, except per share data) Three Months Ended September 30, 2021 2020 Net (loss) income attributable to Adtalem (GAAP) $ (58,004) $ 19,930 Deferred revenue adjustment 6,207 — CEO transiti
Slide 21: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables Adtalem Global Education Inc. Non-GAAP Free Cash Flow Disclosure (unaudited) (in thousands) Three Months Ended Twelve Months Ended FY22 FY21 FY22 FY21 FY21 FY21 FY21 FY20 FY20 FY20 FY20 Q1 Q1 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Net cash provided by operating activities- continu
Slide 22: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables Adtalem Global Education Inc. Non-GAAP Outlook Disclosure (unaudited) (in millions, except per share data) Year Ended June 30, 2022 Expected earnings per share, diluted (GAAP) $ 0.92 to 1.17 Expected effects on diluted earnings per share: Estimated purchase accounting
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