Covista Inc. · NYSE:CVSA
Covista — Adtalem Global Education — Q4 2023 Earnings Presentation
24 slides from Covista's earnings presentation, Aug 10, 2023
Slide 1: Fourth Quarter & Full Year 2023 Earnings
Fourth Quarter & Full Year 2023 Earnings August 10, 2023 ©2023 Adtalem Global Education Inc. All rights reserved
Slide 2: Safe Harbor
Safe 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 Harbor assumptions and include any
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
Slide 4: 5 like-kind institutions
5 like-kind institutions All post-secondary All with a center of 27 campuses higher education gravity in healthcare Robust online delivery >75k students ~90% of student enrollment capabilities ~150 degree programs is healthcare focused 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
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 3 R e s u l
Slide 6: FY 2023 Performance
FY 2023 Performance Repositioned Adtalem, integrating our institutions, focusing on operational execution, creating an unparalleled foundation $1,451 million 23.7% 1 $4.21 1 Revenue Adj. EBITDA margin Adj. EPS +5.0% vs. prior year ~flat vs. prior year +35.4% vs. prior year Financial strength with ca
Slide 7: Q4 2023 Performance
Q4 2023 Performance Growth with Purpose building momentum $365 million 22.8% 1 $1.03 1 Revenue Adj. EBITDA margin Adj. EPS +1.1% vs. prior year (620) bps vs. prior year (19.5)% vs. prior year Strategic initiatives improving total enrollment trends • Chamberlain: 33.3k students o Growing total enroll
Slide 8: Highlights
Highlights FY 2023: Revenue & Adj. EPS1 came in ahead of expectations ▪ Total enrollment trends consistently improving sequentially ▪ Operational execution, enhanced student experience, increased persistence, and brand awareness generating positive returns Uniquely positioned to create an outsized i
Slide 9: Improving Total Enrollment Trends
Improving Total Enrollment Trends Chamberlain second straight quarter of YoY total enrollment growth in pre-licensure & post-licensure programs Walden new enrollments up YoY led by healthcare programs Continue to deliver enhanced student outcomes 1 Total Enrollment % Change YoY Q4 ‘23 | Q3 ‘23 79.6k
Slide 10: Enterprise Performance
Enterprise Performance Growth with Purpose strategy improving revenue Synergies and operational efficiencies offset by strategic investments Q4 ‘23 ∆ vs. Q4 ‘22 2023 ∆ vs. 2022 $ in Millions Total Enrollment -2.5% vs. Q4 ‘22 Revenue $364.6 +1.1% $1,450.8 +5.0% • Improvement of +60 basis points compa
Slide 11: Chamberlain Performance
Chamberlain Performance Growth driven by pre-licensure & post-licensure programs Higher persistence Q4 ‘23 ∆ vs. Q4 ‘22 2023 ∆ vs. 2022 $ in Millions Total Enrollment +1.2% vs. Q4 ‘22 Revenue $144.5 +3.0% $571.0 +2.4% • Growth in pre-licensure & post-licensure nursing programs and higher persistence
Slide 12: Walden Performance
Walden Performance Stabilizing total enrollment trends, strong recovery in new enrollment demand Higher persistence Q4 ‘23 ∆ vs. Q4 ‘22 2023 ∆ vs. 2022 $ in Millions Total Enrollment -4.8% vs. Q4 ‘22 Revenue $138.0 +0.7% $533.7 +10.0% • Accelerating sequential improvement in healthcare total enrollm
Slide 13: Medical & Veterinary Performance
Medical & Veterinary Performance Vet in a leading position Med continued high-quality academic outcomes Q4 ‘23 ∆ vs. Q4 ‘22 2023 ∆ vs. 2022 $ in Millions Total Enrollment -8.2% vs. Q4 ‘22 Revenue $82.1 (1.5)% $346.1 +2.1% • RUSVM operating at near capacity, below expectations at both medical schools
Slide 14: Cash Flow
Cash Flow Healthy cash generation and yield $ in Millions Three Months Trailing Twelve Months $227 $96 $196 $199 $169 $133 $38 2022 2023 Q4 ‘22 Q1 ‘23 Q2 ‘23 Q3 ‘23 Q4 ‘23 Operating Cash Flow $105 $56 $164 $226 $225 $255 $206 Capital Expenditure ($9) ($18) ($31) ($30) ($26) ($28) ($37) 1 Free Cash F
Slide 15: FY 2024 Guidance
FY 2024 Guidance 1 Raising lower end of FY 2024 Adj. EPS guidance by 5 cents Underlying Themes Total enrollment & revenue trends Revenue $1,460m - $1,520m improving throughout FY 2024 Maintain Adj. EBITDA1 margin Adj. EPS 1 $4.20 - $4.40 Investments in organic growth Continued strong cash flow & act
Slide 16: A Category of One
Transformed Portfolio, Positioned Well as a Leading Healthcare Educator In a growing, structurally attractive industry with tailwinds A Category of One Creating Long-Term Value with Growth with Purpose Strategy Focused on accelerating organic total enrollment growth and efficiency As a systemically
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 Execution of the remaining $173m against our Board-authorized $300m share repurchase program through February 2025 Financial
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 3 R e s u l t s / 1 8 ©2023 Adtalem Global Education Inc. All rights reserved
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
Slide 20: 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) 2023 2022 $ % 2023 2022 $ % Chamberlain: Operating income (GAAP) $ 35,683 $ 41,124 $ (5,441) (13.2)% $ 134,685 $ 124,414 $ 10,271 8.
Slide 21: 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) 2023 2022 $ % 2023 2022 $ % Home Office and Other: Operating loss (GAAP) $ (16,412) $ (21,560) $ 5,148 23.9 % $ (62,044) $ (101,719)
Slide 22: Non-GAAP Earnings Disclosure
Non-GAAP Earnings Disclosure (unaudited) (in thousands, except per share data) Three Months Ended Year Ended June 30, June 30, 2023 2022 2023 2022 Net income (GAAP) $ 22,244 $ 6,746 $ 93,358 $ 310,991 Deferred revenue adjustment — — — 8,561 CEO transition costs — — — 6,195 Restructuring expense 1,11
Slide 23: 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 FY23 FY22 Q4 Q4 Q4 Q3 Q2 Q1 Q4 Net cash provided by operating activities-continuing operations (GAAP) $ 55,863 $ 105,231 $ 205,684 $ 255,052 $ 225,247 $ 225,972 $ 164,002 Cap
Slide 24: Non-GAAP Net Leverage Disclosure
Non-GAAP Net Leverage Disclosure (unaudited) (in thousands) Year Ended June 30, 2023 Adtalem Global Education: Net income (GAAP) $ 93,358 Net loss from discontinued operations 8,394 Interest expense 63,100 Other income, net (6,965) Provision for income taxes 10,283 Depreciation and amortization 102,
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