Covista Inc. · NYSE:CVSA

Covista — Adtalem Global Education — Q3 2024 Earnings Presentation

25 slides from Covista's earnings presentation, May 2, 2024

  1. Slide 1: Third Quarter 2024 Earnings

    Third Quarter 2024 Earnings May 2, 2024 ©2024 Adtalem Global Education Inc. All rights reserved

  2. Slide 2: Safe Harbor

    Safe FORWARD-LOOKING STATEMENTS Certain statements contained in this presentation 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 includ

  3. 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 : T h i r d Q u a r t e r

  4. 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 >85k students ~90% of student enrollment capabilities ~150 programs1 is healthcare focused As of March 31, 2024 A D T A L E M : T h i r d Q u a r t e r 2 0 2 4 R

  5. 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 : T h i r d Q u a r t e r 2 0 2 4 R e s u l t s / 5 ©2024 Adtal

  6. Slide 6: Q3 2024 Performance

    Q3 2024 Performance Total enrollment growth YoY: +7.8% $413 million 25.9% 1 $1.50 1 Revenue Adj. EBITDA margin Adj. EPS +11.8% vs. prior year +260 bps vs. prior year +32.7% vs. prior year Growth with Purpose delivering enterprise total enrollment growth & operational leverage • Chamberlain: 38.0k st

  7. Slide 7: Q3 2024 Highlights

    Q3 2024 Highlights 1 Revenue & Adj. EPS ahead of expectations ▪ Total enrollment growth YoY sequential improvement ▪ Brand campaigns delivering efficient demand, optimizing enrollment process ▪ Operational execution focus, enhanced student experiences, maintained high persistence, quality academic o

  8. Slide 8: Accelerating Total Enrollment Trends

    Accelerating Total Enrollment Trends Chamberlain: fifth straight quarter of YoY total enrollment growth in pre-licensure & post-licensure programs Walden: third straight quarter of YoY total enrollment growth Continue to deliver enhanced student outcomes, maintained high persistence levels Total enr

  9. Slide 9: Enterprise Performance

    Enterprise Performance Growth with Purpose strategy improving key areas of value creation Revenue growth and efficiencies generating operational leverage Optimally balancing increased level of investments Q3 ‘24 Q3 ‘23 ∆ vs. Q3 ‘23 Total Enrollment +7.8% $ in Millions • Improvement of +160 basis poi

  10. Slide 10: Chamberlain Performance

    Chamberlain Performance Growth driven by post-licensure & pre-licensure nursing programs Higher persistence Q3 ‘24 Q3 ‘23 ∆ vs. Q3 ‘23 $ in Millions Total Enrollment +9.0% Revenue $170.3 $149.7 +13.8% • Growth in post-licensure & pre-licensure nursing programs 1 • New enrollments up YoY pre-licensur

  11. Slide 11: Walden Performance

    Walden Performance Robust total enrollment growth & continued strength in new enrollment demand High persistence Q3 ‘24 Q3 ‘23 ∆ vs. Q3 ‘23 $ in Millions Total Enrollment +8.4% Revenue $150.6 $132.9 +13.3% • Growth in healthcare slightly offset by non-healthcare programs 1 • New enrollments up YoY h

  12. Slide 12: Medical & Veterinary Performance

    Medical & Veterinary Performance Vet maintaining leading position Med operational remediation plans showing early improvements to total enrollment trends Q3 ‘24 Q3 ‘23 ∆ vs. Q3 ‘23 $ in Millions Total Enrollment (4.5)% Revenue $91.7 $86.5 +6.1% • RUSVM operating at near capacity • Medical schools’ s

  13. Slide 13: Cash Flow

    Cash Flow Continued healthy cash generation and disciplined capital allocation $ in Millions Three Months Trailing Twelve Months $233 $142 $227 $189 $98 $169 $158 Q3 ‘23 Q3 ‘24 Q3 ‘23 Q4 ‘23 Q1 ‘24 Q2 ‘24 Q3 ‘24 1 Operating Cash Flow $107 $164 $255 $206 $205 $246 $303 Capital Expenditure ($9) ($22)

  14. Slide 14: FY 2024 Guidance

    FY 2024 Guidance Raising Revenue and Adj. EPS Outlook Underlying Themes Sustained level of higher organic Revenue $1,560m - $1,580m revenue in Q4 ‘24 Maintain Adj. EBITDA1 margin Adj. EPS 1 $4.80 - $5.00 Investments in organic growth Continued strong cash flow & active capital deployment Dept. of Ed

  15. Slide 15: Transformed Portfolio, Positioned Well as a Leading Healthcare Educator

    Transformed Portfolio, Positioned Well as a Leading Healthcare Educator In a growing, structurally attractive industry with durable demand trends Creating Long-Term Value with Growth with Purpose Strategy Focused on accelerating organic total enrollment growth and efficiency A systemically important

  16. Slide 16: 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 $220 million remaining on our Board-authorized $300 million share repurchase program 1 through January 2027 Financial Streng

  17. Slide 17: Appendix

    Appendix A D T A L E M : T h i r d Q u a r t e r 2 0 2 4 R e s u l t s / 1 7 ©2024 Adtalem Global Education Inc. All rights reserved

  18. Slide 18: 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

  19. Slide 19: Non-GAAP Adjusted Operating by Segment Disclosure (1/2)

    Non-GAAP Adjusted Operating by Segment Disclosure (1/2) (unaudited) (in thousands) Three Months Ended Nine Months Ended March 31, March 31, Increase/(Decrease) Increase/(Decrease) 2024 2023 $ % 2024 2023 $ % Chamberlain: Operating income (GAAP) $ 43,349 $ 39,589 $ 3,760 9.5 % $ 97,313 $ 99,002 $ (1,

  20. Slide 20: Non-GAAP Adjusted Operating by Segment Disclosure (2/2)

    Non-GAAP Adjusted Operating by Segment Disclosure (2/2) (unaudited) (in thousands) Three Months Ended Nine Months Ended March 31, March 31, Increase/(Decrease) Increase/(Decrease) 2024 2023 $ % 2024 2023 $ % Home Office and Other: Operating loss (GAAP) $ (27,968) $ (6,975) $ (20,993) (301.0)% $ (55,

  21. Slide 21: 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) 2024 2023 $ % 2024 2023 $ % Chamberlain: Operating income (GAAP) $ 43,349 $ 39,589 $ 3,760 9.5 % $ 97,313 $ 99,002 $ (1,689

  22. Slide 22: 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) 2024 2023 $ % 2024 2023 $ % Home Office and Other: Operating loss (GAAP) $ (27,968) $ (6,975) $ (20,993) (301.0)% $ (55,045

  23. Slide 23: 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, 2024 2023 2024 2023 Net income (GAAP) $ 36,821 $ 45,869 $ 87,358 $ 71,114 Restructuring expense 473 1,278 1,217 17,706 Business integration expense 18,450 11,346 30

  24. Slide 24: Non-GAAP Free Cash Flow Disclosure

    Non-GAAP Free Cash Flow Disclosure (unaudited) (in thousands) Three Months Ended Nine Months Ended Twelve Months Ended FY24 FY23 FY24 FY23 FY24 FY24 FY24 FY23 FY23 Q3 Q3 Q3 Q3 Q3 Q2 Q1 Q4 Q3 Net cash provided by operating activities- continuing operations (GAAP) $ 163,740 $ 107,544 $ 246,809 $ 149,8

  25. Slide 25: Non-GAAP Net Leverage Disclosure

    Non-GAAP Net Leverage Disclosure (unaudited) (in thousands) Twelve Months Ended March 31, 2024 Adtalem Global Education: Net income (GAAP) $ 109,602 Loss from discontinued operations 1,061 Interest expense 64,204 Other income, net (12,312) Provision for income taxes 25,533 Depreciation and amortizat

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