Covista Inc. · NYSE:CVSA
Covista — Adtalem Global Education — Q3 2023 Earnings Presentation
19 slides from Covista's earnings presentation, May 2, 2023
Slide 1: Third Quarter 2023 Earnings Presentation
Third Quarter 2023 Earnings Presentation May 2, 2023 ©2023 Adtalem Global Education Inc. All rights reserved.
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: Q3 2023 Performance
Q3 2023 Performance Improving total enrollment trends | strategic transformation momentum $369 million 23.3% $1.13 Q3 Revenue Q3 Adj. EBITDA Margin 1 Q3 Adj. EPS1 +1.3% vs. prior year (200) bps vs. prior year +34.5% vs. prior year Improving total enrollment Financial strength o Chamberlain: 34.8k st
Slide 4: Highlights
Highlights Q3 ’23 Results Momentum against strategic transformation Continue to focus on driving operational excellence, creating strong foundation to reaccelerate long-term growth Commitment to consistent long-term margin expansion On-track to deliver $30 million in cost synergies in fiscal y
Slide 5: Improving Total Enrollment Trends
Improving Total Enrollment Trends Chamberlain leads with growth in pre-licensure & post-licensure programs, early indications of normalization in RN BSN Continue to drive enhanced student outcomes, increasing persistence Total enrollments enterprise Q3 ‘23 | Q2 ‘23 Year-over-year % change 77.7k 79
Slide 6: Enterprise Performance
Q3 FY 2023 RESULTS Enterprise Performance Improving total enrollment trends $ millions Q3 2023 Q3 2022 Change Total Enrollment down 3.1% improvement of 100 basis points compared Revenue $369.1 $364.3 1.3% to second quarter year-over-year Adj. EBITDA1 $85.9 $92.2 (6.8)% Adj. EBITDA1 margin decreased
Slide 7: Chamberlain Performance
Q3 FY 2023 RESULTS Chamberlain Performance Growth driven by pre-licensure & post-licensure nursing programs Higher persistence $ millions Q3 2023 Q3 2022 Change Total Enrollment up 2.0% Revenue $149.7 $142.6 5.0% growth in pre-licensure & post-licensure nursing programs and higher persistence Adj. E
Slide 8: Walden Performance
Q3 FY 2023 RESULTS Walden Performance Stabilizing total enrollment trends in healthcare programs Higher persistence $ millions Q3 2023 Q3 2022 Change Total Enrollment down 7.9% declines in non-healthcare and a lesser Revenue $132.9 $139.1 (4.5)% extent due to healthcare programs partially offset by
Slide 9: Medical & Veterinary Performance
Q3 FY 2023 RESULTS Medical & Veterinary Performance Vet in a leading position with robust demand Continued high persistence $ millions Q3 2023 Q3 2022 Change Total Enrollment up 1.6% Revenue $86.5 $82.7 4.6% growth in both medical and veterinary programs, continued high persistence levels Adj. EBITD
Slide 10: Cash Flow
Cash Flow Driving improved cash generation Free Cash Flow1 $ in Millions Three Months Trailing Twelve Months $227 $98 $196 $199 $70 $133 $68 Q3 ‘22 Q3 ‘23 Q3 ‘22 Q4 ‘22 Q1 ‘23 Q2 ‘23 Q3 ‘23 Operating Cash Flow $78 $107 $102 $164 $226 $225 $255 Capital Expenditure ($8) ($9) ($34) ($31) ($30) ($26) ($
Slide 11: Fiscal Year 2023 Guidance
Fiscal Year 2023 Guidance Narrowing guidance range $ millions Current Prior Underlying Themes Improving enrollment trends Revenue $1,400 - $1,450 $1,380 - $1,450 Enhanced student outcomes Synergy cost program Adj. EPS1 $4.05 - $4.20 $3.95 - $4.20 Capital deployment 1. Reconciliations to Non-GAAP Fin
Slide 12: Appendix
Appendix ADTALEM
Slide 13: 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 14: Non-GAAP Adjusted EBITDA by Segment Disclosure (1/2)
Non-GAAP Adjusted EBITDA by Segment Disclosure (1/2) (unaudited) (in thousands) Three Months Ended Nine Months Ended March 31, March 31, Increase/(Decrease) Increase/(Decrease) 2023 2022 $ % 2023 2022 $ % Chamberlain: Operating income (GAAP) $ 39,589 $ 36,979 $ 2,610 7.1 % $ 99,002 $ 83,290 $ 15,712
Slide 15: Non-GAAP Adjusted EBITDA by Segment Disclosure (2/2)
Non-GAAP Adjusted EBITDA by Segment Disclosure (2/2) (unaudited) (in thousands) Three Months Ended Nine Months Ended March 31, March 31, Increase/(Decrease) Increase/(Decrease) 2023 2022 $ % 2023 2022 $ % Home Office and Other: Operating loss (GAAP) $ (6,975) $ (14,402) $ 7,427 51.6 % $ (45,632) $ (
Slide 16: Non-GAAP Earnings Disclosure
Non-GAAP Earnings Disclosure (unaudited) (in thousands, except per share data) Three Months Ended Nine Months Ended March 31, March 31, 2023 2022 2023 2022 Net income (GAAP) $ 45,869 $ 347,740 $ 71,114 $ 304,245 Deferred revenue adjustment — — — 8,561 CEO transition costs — — — 6,195 Restructuring e
Slide 17: 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 FY23 FY22 FY22 Q3 Q3 Q3 Q2 Q1 Q4 Q3 Net cash provided by operating activities-continuing operations (GAAP) $ 107,544 $ 77,739 $ 255,052 $ 225,247 $ 225,972 $ 164,002 $ 101,855 Cap
Slide 18: Outlook Disclosure
Outlook Disclosure (unaudited) (in thousands, except per share data) Year Ended June 30, 2023 Expected earnings per share, diluted (GAAP) $ 2.14 to 2.29 Expected effects on diluted earnings per share: Restructuring expense 0.38 Integration costs 0.77 Estimated incremental integration costs 0.15 Esti
Slide 19: Non-GAAP Net Leverage Disclosure
Non-GAAP Net Leverage Disclosure (unaudited) (in thousands) Twelve Months Ended March 31, 2023 Adtalem Global Education: Net income (GAAP) $ 77,860 Net income from discontinued operations 1,479 Interest expense 67,247 Other income, net (1,974) Provision for income taxes 29,964 Depreciation and amort
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