Adtalem Global Education Announces Fiscal Fourth Quarter and Year End 2019 Results
CHICAGO--(BUSINESS WIRE)-- Adtalem Global Education Inc. (NYSE: ATGE), a leading workforce solutions provider, today reported academic, operating and financial results for its fiscal 2019 fourth quarter and year ended June 30, 2019.
“We made significant progress in transforming Adtalem Global Education into a leading workforce solutions provider in fiscal 2019. We completed the divestitures of DeVry University and Carrington College, streamlined our three verticals to support our enterprise growth strategy and expanded the financial services customer base through our acquisition of OnCourse Learning,” said Lisa Wardell, chairman and CEO of Adtalem. “In the fourth quarter, we capitalized on strong demand, employer partnerships and superior student outcomes to deliver revenue growth in line with expectations despite some top-line challenges in Brazil. Our students achieved NCLEX pass rates of 90 percent at Chamberlain, and first-time residency attainment rates at the American University of the Caribbean School of Medicine and Ross University School of Medicine were 91% and 92% respectively. I am excited about the future of Adtalem, and I want to thank our dedicated faculty and staff for their ongoing hard work and dedication to our students and employer partners.”
Financial Highlights
Selected financial highlights for the three months ended June 30, 2019:
- Revenue of $330.3 million increased 3.3 percent compared with the prior year
- Operating income from continuing operations was $71.9 million compared with $65.2 million in the prior year; operating income from continuing operations excluding special items was $70.1 million compared with $67.1 million in the prior year
- Net income was $49.5 million compared with $62.8 million in the prior year; net income from continuing operations excluding special items was $55.4 million compared with $53.0 million in the prior year
- Diluted earnings per share was $0.86 compared with $1.02 in the prior year; diluted earnings per share from continuing operations excluding special items was $0.97 compared with $0.86 in the prior year
- Approximately 1.67 million shares of common stock were repurchased during the fourth quarter of fiscal 2019 at an average purchase price of $45.35 for a total of $75.9 million
Selected financial highlights for the 12 months ended June 30, 2019:
- Revenue of $1,239.7 million increased 0.7 percent compared with the prior year
- Operating income from continuing operations was $186.0 million compared with $207.5 million in the prior year; operating income from continuing operations excluding special items was $215.7 million compared with $212.5 million in the prior year
- Net income was $95.2 million compared with $33.8 million in the prior year; net income from continuing operations excluding special items was $167.2 million compared with $172.9 million in the prior year
- Diluted earnings per share was $1.60 compared with $0.54 in the prior year; diluted earnings per share from continuing operations excluding special items was $2.82 compared with $2.78 in the prior year
- Approximately 5.31 million shares of common stock were repurchased during fiscal 2019 at an average purchase price of $47.65 for a total of $252.9 million
Fiscal 2019 fourth quarter results contained special items including total pre-tax restructuring charges of $8.8 million, primarily related to real estate consolidations at Adtalem’s home office and a pre-tax gain of $10.6 million related to settlement of certain derivative lawsuits.
Adtalem completed the transfer of ownership of DeVry University and Carrington College during the second quarter of fiscal 2019. An additional loss on discontinued operations of $2.3 million was recorded in the fourth quarter of fiscal 2019 related to these divestitures.
Segment Highlights
Medical and Healthcare
Fourth quarter segment revenue increased 5.2 percent to $211.6 million compared with the prior year.
Chamberlain revenue in the fourth quarter increased 6.9 percent compared with the prior year. Fourth quarter new student average enrollment increased 0.9 percent while total student enrollment increased 2.4 percent compared with the prior year with growth in the campus Bachelor of Science of Nursing program as well as the graduate programs.
Revenue in the fourth quarter for the medical and veterinary schools increased 3.0 percent from the prior year.
In the May 2019 session, new student enrollment declined 0.6 percent while total student enrollment declined 6.0 percent compared with the prior year.
Segment operating income in the fourth quarter was $39.7 million compared with $48.1 million in the prior year. Excluding special items, segment operating income in the fourth quarter declined 17.0 percent to $40.1 million compared with $48.3 million in the prior year. The decrease in segment operating income is the result of increased marketing expenses to drive future enrollment growth and a higher level of corporate allocation expense.
Financial Services
Fourth quarter segment revenue increased 18.1 percent to $53.5 million compared with the prior year. Becker Accounting revenue grew 8.4 percent and the Association of Anti-Money Laundering Specialists (ACAMS) revenue increased 26.8 percent. Segment operating income in the quarter was $14.7 million compared with $12.6 million in the prior year. Excluding special items, segment operating income in the fourth quarter grew 23.3 percent to $16.0 million compared with $13.0 million in the prior year.
Business and Law
Fourth quarter segment revenue decreased 11.1 percent to $66.1 million compared with the prior year. On a constant currency basis, revenue decreased 3.7 percent compared with the prior year driven by higher scholarships and discounts to offset reductions in government financial aid funding.
Despite the decrease in revenue, segment operating income in the fourth quarter increased to $14.3 million compared with $13.7 million in the prior year. Excluding special items, fourth quarter segment operating income grew 2.4 percent to $15.3 million compared with $14.9 million in the prior year. The increase in operating income is the result of reductions in back office and administrative costs.
Adtalem Outlook
Fiscal Year 2020
- Revenue is expected to grow 5 to 7 percent compared with the prior year
- Effective income tax rate is expected to be in the 17 to 18 percent range
- Earnings per share from continuing operations, excluding special items, are expected to grow in the 7 to 9 percent range compared with the prior year
- Full-year capital spending is expected to be in the $45 to $50 million range
Conference Call and Webcast Information
Adtalem will hold a conference call to discuss its fourth quarter fiscal 2019 earnings on Thursday, August 22, at 4 p.m. CT (5 p.m. ET). The conference call will be led by Lisa Wardell, chairman, and CEO, and Patrick Unzicker, chief financial officer and treasurer.
For those wishing to participate by telephone, dial 877-407-6184 (domestic) or 201-389-0877 (international) and ask for the Adtalem call or use conference ID: 13689883. Adtalem will also broadcast the conference call on the Adtalem website at: https://78449.themediaframe.com/dataconf/productusers/age/mediaframe/31613/indexl.html.
Please access the website at least 15 minutes prior to the start of the call to register, download and install any necessary audio software.
Adtalem will archive a telephone replay of the call until Sept. 22, 2019. To access the replay, dial 877-660-6853 (domestic) or 201-612-7415 (international), conference ID: 13689883. To access the webcast replay, please visit Adtalem's website at https://investors.adtalem.com/overview/default.aspx.
About Adtalem Global Education
The purpose of Adtalem Global Education is to empower students to achieve their goals, find success and make inspiring contributions to our global community. Adtalem Global Education Inc. (NYSE: ATGE; member S&P MidCap 400 Index) is a leading workforce solutions provider and the parent organization of Adtalem Educacional do Brasil (IBMEC, Damásio and Wyden institutions), American University of the Caribbean School of Medicine, Association of Certified Anti-Money Laundering Specialists, Becker Professional Education, Chamberlain University, EduPristine, OnCourse Learning, Ross University School of Medicine and Ross University School of Veterinary Medicine. For more information, please visit adtalem.com and follow us on Twitter (@adtalemglobal) and LinkedIn.
Forward-Looking Statement
Certain statements contained in this release concerning Adtalem Global Education’s expected future performance, including those statements concerning expectations or plans, constitute “forward-looking statements” within the meaning of the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. These forward-looking statements generally can be identified by phrases such as Adtalem Global Education or its management “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates,” “plans,” “intends,” “continues,” “may,” “will,” “should,” “could,” or other words or phrases of similar import which predict or indicate future events or trends or that are not statements of historical matters. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances.
These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause or contribute to a material difference include the risks discussed in Item 1A, “Risk Factors,” in our most recent Annual Report on Form 10-K for the year ending June 30, 2018 filed with the Securities and Exchange Commission (SEC) on August 24, 2018 and our other filings with the SEC. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. All forward-looking statements set forth in this release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business or operations. Forward-looking statements set forth in this release speak only as of the date hereof, and we do not undertake any obligation to update forward-looking statements to reflect subsequent events or circumstances, changes in expectations or the occurrence of unanticipated events, except to the extent required by law.
|
4Q 2019 |
4Q 2018 |
% Change |
|||||
Adtalem Global Education Student Enrollments(1)
|
|
|
|
|||||
New students |
4,493 |
4,395 |
+2.2% |
|||||
Total students |
113,830 |
109,293 |
+4.2% |
|||||
|
|
|
|
|||||
|
|
|
|
|||||
Chamberlain University |
|
|
|
|||||
May Session |
|
|
|
|||||
New students |
3,997 |
3,896 |
+2.6% |
|||||
Total students |
30,867 |
30,309 |
+1.8% |
|||||
|
|
|
|
|||||
Average Fourth Quarter Enrollment |
|
|
|
|||||
New students(2) |
3,997 |
3,896 |
+2.6% |
|||||
Total students(3) |
31,279 |
30,557 |
+2.4% |
|||||
|
|
|
|
|||||
July Session |
|
|
|
|||||
New students(4) |
2,396 |
2,523 |
-5.0% |
|||||
Total students |
28,691 |
28,037 |
+2.3% |
|||||
|
|
|
|
|||||
|
|
|
|
|||||
Medical and Veterinary |
|
|
|
|||||
May Semester(5) |
|
|
|
|||||
New students |
496 |
499 |
-0.6% |
|||||
Total students |
5,220 |
5,556 |
-6.0% |
|||||
|
|
|
|
1) |
Includes fourth quarter 2019 enrollment sessions at Adtalem’s postsecondary institutions |
||
2) |
Based on New May session enrollment |
||
3) |
Summation of the weighted average by program: 1/3 March, 2/3 May |
||
4) |
The July session is made up almost entirely of online students, the majority of which are enrolled in the RN to BSN program |
||
5) |
Includes enrollments in its medical and veterinary preparatory programs |
ADTALEM GLOBAL EDUCATION INC. CONSOLIDATED BALANCE SHEETS (unaudited) |
||||||
|
|
|
|
|
|
|
|
|
June 30, |
||||
|
|
2019 |
|
2018 |
||
|
|
(in thousands, except share |
||||
|
|
and par value amounts) |
||||
ASSETS: |
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
Cash and Cash Equivalents |
|
$ |
299,445 |
|
$ |
430,690 |
Investments in Marketable Securities |
|
|
8,680 |
|
|
4,255 |
Restricted Cash |
|
|
1,022 |
|
|
310 |
Accounts Receivable, Net |
|
|
157,829 |
|
|
146,726 |
Prepaid Expenses and Other Current Assets |
|
|
37,724 |
|
|
58,887 |
Current Assets Held for Sale |
|
|
— |
|
|
47,132 |
Total Current Assets |
|
|
504,700 |
|
|
688,000 |
Land, Building and Equipment: |
|
|
|
|
|
|
Land |
|
|
44,609 |
|
|
48,177 |
Building |
|
|
383,331 |
|
|
389,129 |
Equipment |
|
|
281,551 |
|
|
302,516 |
Construction in Progress |
|
|
16,222 |
|
|
25,360 |
|
|
|
725,713 |
|
|
765,182 |
Accumulated Depreciation |
|
|
(361,030) |
|
|
(376,528) |
Land, Building and Equipment, Net |
|
|
364,683 |
|
|
388,654 |
Noncurrent Assets: |
|
|
|
|
|
|
Deferred Income Taxes |
|
|
18,314 |
|
|
38,780 |
Intangible Assets, Net |
|
|
418,097 |
|
|
362,931 |
Goodwill |
|
|
874,451 |
|
|
813,887 |
Other Assets, Net |
|
|
62,451 |
|
|
39,259 |
Other Assets Held for Sale |
|
|
— |
|
|
13,450 |
Total Noncurrent Assets |
|
|
1,373,313 |
|
|
1,268,307 |
TOTAL ASSETS |
|
$ |
2,242,696 |
|
$ |
2,344,961 |
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
Accounts Payable |
|
$ |
57,627 |
|
$ |
47,477 |
Accrued Salaries, Wages and Benefits |
|
|
64,492 |
|
|
71,289 |
Accrued Liabilities |
|
|
86,722 |
|
|
80,803 |
Deferred Revenue |
|
|
99,790 |
|
|
106,773 |
Current Portion of Long-Term Debt |
|
|
3,000 |
|
|
3,000 |
Current Liabilities Held for Sale |
|
|
— |
|
|
56,439 |
Total Current Liabilities |
|
|
311,631 |
|
|
365,781 |
Noncurrent Liabilities: |
|
|
|
|
|
|
Long-Term Debt |
|
|
398,094 |
|
|
290,073 |
Deferred Income Taxes |
|
|
29,426 |
|
|
29,115 |
Other Liabilities |
|
|
102,472 |
|
|
131,380 |
Noncurrent Liabilities Held for Sale |
|
|
— |
|
|
216 |
Total Noncurrent Liabilities |
|
|
529,992 |
|
|
450,784 |
TOTAL LIABILITIES |
|
|
841,623 |
|
|
816,565 |
NONCONTROLLING INTEREST |
|
|
9,543 |
|
|
9,110 |
SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|
Common Stock, $0.01 Par Value, 200,000,000 Shares Authorized; 55,303,000 and 59,893,000 Shares Outstanding at June 30, 2019 and June 30, 2018, respectively |
|
|
801 |
|
|
793 |
Additional Paid-in Capital |
|
|
486,061 |
|
|
454,653 |
Retained Earnings |
|
|
2,012,902 |
|
|
1,917,373 |
Accumulated Other Comprehensive Loss |
|
|
(137,290) |
|
|
(142,168) |
Treasury Stock, at Cost, 24,830,000 and 19,390,000 Shares at June 30, 2019 and June 30, 2018, respectively |
|
|
(970,944) |
|
|
(711,365) |
TOTAL SHAREHOLDERS’ EQUITY |
|
|
1,391,530 |
|
|
1,519,286 |
TOTAL LIABILITIES, NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY |
|
$ |
2,242,696 |
|
$ |
2,344,961 |
ADTALEM GLOBAL EDUCATION INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
June 30, |
|
June 30, |
||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||
|
|
(in thousands, except per share amounts) |
||||||||||
REVENUE |
|
$ |
330,294 |
|
$ |
319,787 |
|
$ |
1,239,687 |
|
$ |
1,231,211 |
OPERATING COST AND EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Educational Services |
|
|
160,316 |
|
|
155,673 |
|
|
623,540 |
|
|
645,604 |
Student Services and Administrative Expense |
|
|
99,863 |
|
|
97,064 |
|
|
400,411 |
|
|
373,064 |
Restructuring Expense |
|
|
8,830 |
|
|
1,883 |
|
|
55,925 |
|
|
5,067 |
Settlement Gains |
|
|
(10,607) |
|
|
— |
|
|
(26,178) |
|
|
— |
Total Operating Cost and Expense |
|
|
258,402 |
|
|
254,620 |
|
|
1,053,698 |
|
|
1,023,735 |
Operating Income from Continuing Operations |
|
|
71,892 |
|
|
65,167 |
|
|
185,989 |
|
|
207,476 |
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and Dividend Income |
|
|
1,855 |
|
|
1,015 |
|
|
7,976 |
|
|
5,827 |
Interest Expense |
|
|
(6,604) |
|
|
(7,373) |
|
|
(23,631) |
|
|
(14,620) |
Investment Gain (Loss) |
|
|
254 |
|
|
— |
|
|
(153) |
|
|
— |
Net Other Expense |
|
|
(4,495) |
|
|
(6,358) |
|
|
(15,808) |
|
|
(8,793) |
Income from Continuing Operations Before Income Taxes |
|
|
67,397 |
|
|
58,809 |
|
|
170,181 |
|
|
198,683 |
Income Tax (Provision) Benefit |
|
|
(15,337) |
|
|
38,673 |
|
|
(34,157) |
|
|
(84,102) |
Equity Method Investment Loss |
|
|
— |
|
|
— |
|
|
— |
|
|
(138) |
Income from Continuing Operations |
|
|
52,060 |
|
|
97,482 |
|
|
136,024 |
|
|
114,443 |
DISCONTINUED OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
Loss from Discontinued Operations Before Income Taxes |
|
|
(2,220) |
|
|
(52,882) |
|
|
(14,630) |
|
|
(124,162) |
Loss on Disposal of Discontinued Operations Before Income Taxes |
|
|
(625) |
|
|
— |
|
|
(33,604) |
|
|
— |
Income Tax Benefit |
|
|
579 |
|
|
18,275 |
|
|
7,791 |
|
|
44,016 |
Loss from Discontinued Operations |
|
|
(2,266) |
|
|
(34,607) |
|
|
(40,443) |
|
|
(80,146) |
NET INCOME |
|
|
49,794 |
|
|
62,875 |
|
|
95,581 |
|
|
34,297 |
Net Income Attributable to Noncontrolling Interest |
|
|
(296) |
|
|
(69) |
|
|
(413) |
|
|
(528) |
NET INCOME ATTRIBUTABLE TO ADTALEM GLOBAL EDUCATION |
|
$ |
49,498 |
|
$ |
62,806 |
|
$ |
95,168 |
|
$ |
33,769 |
|
|
|
|
|
|
|
|
|
|
|
|
|
AMOUNTS ATTRIBUTABLE TO ADTALEM GLOBAL EDUCATION: |
|
|
|
|
|
|
|
|
|
|
|
|
Income from Continuing Operations |
|
$ |
51,764 |
|
$ |
97,413 |
|
$ |
135,611 |
|
$ |
113,915 |
Loss from Discontinued Operations |
|
|
(2,266) |
|
|
(34,607) |
|
|
(40,443) |
|
|
(80,146) |
NET INCOME ATTRIBUTABLE TO ADTALEM GLOBAL EDUCATION |
|
$ |
49,498 |
|
$ |
62,806 |
|
$ |
95,168 |
|
$ |
33,769 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER COMMON SHARE ATTRIBUTABLE TO ADTALEM GLOBAL EDUCATION SHAREHOLDERS: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations |
|
$ |
0.92 |
|
$ |
1.60 |
|
$ |
2.32 |
|
$ |
1.85 |
Discontinued Operations |
|
$ |
(0.04) |
|
$ |
(0.57) |
|
$ |
(0.69) |
|
$ |
(1.30) |
Total |
|
$ |
0.88 |
|
$ |
1.03 |
|
$ |
1.63 |
|
$ |
0.55 |
Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations |
|
$ |
0.90 |
|
$ |
1.58 |
|
$ |
2.29 |
|
$ |
1.83 |
Discontinued Operations |
|
$ |
(0.04) |
|
$ |
(0.56) |
|
$ |
(0.68) |
|
$ |
(1.29) |
Total |
|
$ |
0.86 |
|
$ |
1.02 |
|
$ |
1.60 |
|
$ |
0.54 |
ADTALEM GLOBAL EDUCATION INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
||||||
|
|
|
|
|
|
|
|
|
Year Ended June 30, |
||||
|
|
2019 |
|
2018 |
||
|
|
(in thousands) |
||||
CASH FLOW FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
Net Income |
|
$ |
95,581 |
|
$ |
34,297 |
Loss from Discontinued Operations |
|
|
40,443 |
|
|
80,146 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: |
|
|
|
|
|
|
Stock-Based Compensation Expense |
|
|
13,217 |
|
|
14,499 |
Depreciation |
|
|
43,029 |
|
|
43,286 |
Amortization of Intangible Assets |
|
|
8,712 |
|
|
9,538 |
Amortization of Deferred Debt Issuance Costs |
|
|
1,566 |
|
|
2,273 |
Impairment of Intangible Assets |
|
|
— |
|
|
400 |
Provision for Bad Debts |
|
|
19,141 |
|
|
16,920 |
Deferred Income Taxes |
|
|
20,761 |
|
|
(10,595) |
Loss on Disposals, Accelerated Depreciation and Adjustments to Land, Building and Equipment |
|
|
45,862 |
|
|
31,728 |
Realized Loss on Investments |
|
|
207 |
|
|
— |
Unrealized Loss on Investments |
|
|
(54) |
|
|
— |
Insurance Settlement Gain |
|
|
(15,571) |
|
|
— |
Changes in Assets and Liabilities: |
|
|
|
|
|
|
Accounts Receivable |
|
|
(27,706) |
|
|
(26,413) |
Prepaid Expenses and Other |
|
|
(24,300) |
|
|
16,793 |
Accounts Payable |
|
|
9,199 |
|
|
9,964 |
Accrued Salaries, Wages, Benefits and Liabilities |
|
|
6,451 |
|
|
(4,938) |
Deferred Revenue |
|
|
(10,089) |
|
|
3,382 |
Net Cash Provided by Operating Activities-Continuing Operations |
|
|
226,449 |
|
|
221,280 |
Net Cash (Used in) Provided by Operating Activities-Discontinued Operations |
|
|
(21,591) |
|
|
17,909 |
NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
|
204,858 |
|
|
239,189 |
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
Capital Expenditures |
|
|
(64,751) |
|
|
(66,530) |
Insurance Proceeds Received for Damage to Buildings and Equipment |
|
|
35,706 |
|
|
— |
Sales of Marketable Securities |
|
|
1,841 |
|
|
— |
Purchases of Marketable Securities |
|
|
(6,321) |
|
|
(159) |
Payment for Purchase of Businesses, Net of Cash Acquired |
|
|
(118,409) |
|
|
(4,041) |
Payment for Investment in Business |
|
|
— |
|
|
(5,000) |
Loan to DeVry University (see "Note 2: Discontinued Operations") |
|
|
(10,000) |
|
|
— |
Net Cash Used in Investing Activities-Continuing Operations |
|
|
(161,934) |
|
|
(75,730) |
Net Cash (Used in) Provided by Investing Activities-Discontinued Operations |
|
|
(1,833) |
|
|
4,280 |
Cash and Restricted Cash Transferred in Divestitures of Discontinued Operations |
|
|
(50,069) |
|
|
— |
NET CASH USED IN INVESTING ACTIVITIES |
|
|
(213,836) |
|
|
(71,450) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
Proceeds from Exercise of Stock Options |
|
|
16,994 |
|
|
23,821 |
Employee Taxes Paid on Withholding Shares |
|
|
(6,801) |
|
|
(4,203) |
Proceeds from Stock Issued Under Colleague Stock Purchase Plan |
|
|
421 |
|
|
803 |
Repurchase of Common Stock for Treasury |
|
|
(252,852) |
|
|
(137,028) |
Payments of Seller Financed Obligations |
|
|
(2,295) |
|
|
(11,413) |
Borrowings Under Credit Facility |
|
|
135,000 |
|
|
578,000 |
Repayments Under Credit Facility |
|
|
(28,000) |
|
|
(403,000) |
Payment of Debt Issuance Costs |
|
|
— |
|
|
(9,871) |
Capital Investment from Noncontrolling Interest |
|
|
— |
|
|
95 |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES |
|
|
(137,533) |
|
|
37,204 |
Effects of Exchange Rate Differences |
|
|
2,573 |
|
|
(11,634) |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
|
|
(143,938) |
|
|
193,309 |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period |
|
|
444,405 |
|
|
251,096 |
Cash, Cash Equivalents and Restricted Cash at End of Period |
|
|
300,467 |
|
|
444,405 |
Less: Cash, Cash Equivalents and Restricted Cash of Discontinued Operations at End of Period |
|
|
— |
|
|
13,405 |
Cash, Cash Equivalents and Restricted Cash at End of Period |
|
$ |
300,467 |
|
$ |
431,000 |
ADTALEM GLOBAL EDUCATION INC. SEGMENT INFORMATION (unaudited) |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||||
|
|
2019 |
|
2018 |
|
Increase
|
|
|
2019 |
|
2018 |
|
Increase
|
|
||||
|
|
(in thousands) |
||||||||||||||||
REVENUE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical and Healthcare |
|
$ |
211,559 |
|
$ |
201,025 |
|
5.2 |
% |
|
$ |
849,861 |
|
$ |
815,674 |
|
4.2 |
% |
Financial Services |
|
|
53,488 |
|
|
45,289 |
|
18.1 |
% |
|
|
167,211 |
|
|
147,195 |
|
13.6 |
% |
Business and Law |
|
|
66,053 |
|
|
74,332 |
|
(11.1) |
% |
|
|
225,844 |
|
|
270,934 |
|
(16.6) |
% |
Home Office and Other |
|
|
(806) |
|
|
(859) |
|
6.2 |
% |
|
|
(3,229) |
|
|
(2,592) |
|
(24.6) |
% |
Total Consolidated Revenue |
|
|
330,294 |
|
|
319,787 |
|
3.3 |
% |
|
|
1,239,687 |
|
|
1,231,211 |
|
0.7 |
% |
OPERATING INCOME (LOSS): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical and Healthcare |
|
|
39,726 |
|
|
48,089 |
|
(17.4) |
% |
|
|
155,122 |
|
|
189,672 |
|
(18.2) |
% |
Financial Services |
|
|
14,694 |
|
|
12,613 |
|
16.5 |
% |
|
|
34,163 |
|
|
27,695 |
|
23.4 |
% |
Business and Law |
|
|
14,296 |
|
|
13,682 |
|
4.5 |
% |
|
|
17,461 |
|
|
29,431 |
|
(40.7) |
% |
Home Office and Other |
|
|
3,176 |
|
|
(9,217) |
|
NM |
|
|
|
(20,757) |
|
|
(39,322) |
|
47.2 |
% |
Total Consolidated Operating Income |
|
$ |
71,892 |
|
$ |
65,167 |
|
10.3 |
% |
|
$ |
185,989 |
|
$ |
207,476 |
|
(10.4) |
% |
NON-GAAP INFORMATION
In accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), the operating results of DeVry University and Carrington College ("Carrington") are reclassified as discontinued operations for the fourth quarter and full fiscal year 2019 and 2018. During the fourth quarter and full fiscal year 2019, Adtalem recorded special items related to the following: (i) restructuring charges, including asset write-offs, primarily related to the closing of the Ross University School of Medicine ("RUSM"), which is part of the Medical and Healthcare segment, campus in Dominica and real estate consolidations and workforce reductions at Adtalem Brazil, which is part of the Business and Law segment, and Adtalem’s home office (not related to any segment); (ii) insurance settlement gain related to the final proceeds received for damages from Hurricanes Irma and Maria at the American University of the Caribbean School of Medicine ("AUC"), which is part of the Medical and Healthcare segment, and RUSM; (iii) gain related to a lawsuit settlement against the Adtalem Board of Directors; and (iv) adjustments to the preliminary income tax charges related to the implementation of the Tax Cuts and Jobs Act of 2017 and tax charges related to the divestiture of DeVry University. During the fourth quarter and full fiscal year 2018, Adtalem recorded special items related to the following: (i) restructuring charges related to workforce reductions and real estate consolidations at the medical and veterinary schools, which is part of the Medical and Healthcare segment, Becker Professional Education, which is part of the Financial Services segment, and Adtalem’s home office; (ii) asset impairment charges at Adtalem Brazil related to the planned fiscal year 2019 dispositions of the São Luis and Joao Pessoa institutions (presented as restructuring expense), which were completed in fiscal year 2019; (iii) income tax charges related to the implementation of the Tax Cuts and Jobs Act of 2017; and (iv) a net tax benefit for the loss on Adtalem’s investment in Carrington. The following tables illustrate the effects of the discontinued operations and special items on Adtalem’s operating income from continuing operations excluding special items and net income from continuing operations excluding special items. Management believes that the non-GAAP disclosure of operating income from continuing operations, net income from continuing operations and earnings per share excluding the discontinued operations and special items provides investors with useful supplemental information regarding the underlying business trends and performance of Adtalem’s ongoing operations and is useful for period-over-period comparisons of such operations given the special nature of discontinued operations, restructuring charges, settlement gains and certain income tax charges and deductions. Adtalem uses these supplemental financial measures internally in its management and budgeting process. However, these non-GAAP financial measures should be viewed in addition to, and not as a substitute for, Adtalem’s reported results prepared in accordance with GAAP. The following tables reconcile these non-GAAP measures to the most directly comparable GAAP information.
ADTALEM GLOBAL EDUCATION INC. NON-GAAP OPERATING INCOME FROM CONTINUING OPERATIONS BY SEGMENT (unaudited) |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||||
|
|
2019 |
|
2018 |
|
Increase
|
|
|
2019 |
|
2018 |
|
Increase
|
|
||||
|
|
(in thousands) |
||||||||||||||||
Medical and Healthcare Operating Income |
|
$ |
39,726 |
|
$ |
48,089 |
|
(17.4) |
% |
|
$ |
155,122 |
|
$ |
189,672 |
|
(18.2) |
% |
Restructuring Expense |
|
|
339 |
|
|
161 |
|
110.6 |
% |
|
|
41,666 |
|
|
803 |
|
5,088.8 |
% |
Settlement Gains |
|
|
— |
|
|
— |
|
NM |
|
|
|
(15,571) |
|
|
— |
|
NM |
|
Medical and Healthcare Operating Income Excluding Special Items |
|
$ |
40,065 |
|
$ |
48,250 |
|
(17.0) |
% |
|
$ |
181,217 |
|
$ |
190,475 |
|
(4.9) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Services Operating Income |
|
$ |
14,694 |
|
$ |
12,613 |
|
16.5 |
% |
|
$ |
34,163 |
|
$ |
27,695 |
|
23.4 |
% |
Restructuring Expense |
|
|
1,304 |
|
|
357 |
|
265.3 |
% |
|
|
1,304 |
|
|
357 |
|
265.3 |
% |
Financial Services Operating Income Excluding Special Items |
|
$ |
15,998 |
|
$ |
12,970 |
|
23.3 |
% |
|
$ |
35,467 |
|
$ |
28,052 |
|
26.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business and Law Operating Income |
|
$ |
14,296 |
|
$ |
13,682 |
|
4.5 |
% |
|
$ |
17,461 |
|
$ |
29,431 |
|
(40.7) |
% |
Restructuring Expense |
|
|
957 |
|
|
1,216 |
|
(21.3) |
% |
|
|
2,858 |
|
|
1,216 |
|
135.0 |
% |
Business and Law Operating Income Excluding Special Items |
|
$ |
15,253 |
|
$ |
14,898 |
|
2.4 |
% |
|
$ |
20,319 |
|
$ |
30,647 |
|
(33.7) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home Office and Other Operating Income (Loss) |
|
$ |
3,176 |
|
$ |
(9,217) |
|
NM |
|
|
$ |
(20,757) |
|
$ |
(39,322) |
|
47.2 |
% |
Restructuring Expense |
|
|
6,230 |
|
|
149 |
|
4,081.2 |
% |
|
|
10,097 |
|
|
2,691 |
|
275.2 |
% |
Settlement Gains |
|
|
(10,607) |
|
|
— |
|
NM |
|
|
|
(10,607) |
|
|
— |
|
NM |
|
Home Office and Other Operating Loss Excluding Special Items |
|
$ |
(1,201) |
|
$ |
(9,068) |
|
86.8 |
% |
|
$ |
(21,267) |
|
$ |
(36,631) |
|
41.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adtalem Global Education Operating Income |
|
$ |
71,892 |
|
$ |
65,167 |
|
10.3 |
% |
|
$ |
185,989 |
|
$ |
207,476 |
|
(10.4) |
% |
Restructuring Expense |
|
|
8,830 |
|
|
1,883 |
|
368.9 |
% |
|
|
55,925 |
|
|
5,067 |
|
1,003.7 |
% |
Settlement Gains |
|
|
(10,607) |
|
|
— |
|
NM |
|
|
|
(26,178) |
|
|
— |
|
NM |
|
Adtalem Global Education Operating Income Excluding Special Items |
|
$ |
70,115 |
|
$ |
67,050 |
|
4.6 |
% |
|
$ |
215,736 |
|
$ |
212,543 |
|
1.5 |
% |
ADTALEM GLOBAL EDUCATION INC. NON-GAAP EARNINGS DISCLOSURE (unaudited) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
June 30, |
|
June 30, |
||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||
|
|
(in thousands, except per share amounts) |
||||||||||
Net Income |
|
$ |
49,498 |
|
$ |
62,806 |
|
$ |
95,168 |
|
$ |
33,769 |
Earnings per Share (diluted) |
|
$ |
0.86 |
|
$ |
1.02 |
|
$ |
1.60 |
|
$ |
0.54 |
Continuing Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring Expense |
|
$ |
8,830 |
|
$ |
1,883 |
|
$ |
55,925 |
|
$ |
5,067 |
Effect on Earnings per Share (diluted) |
|
$ |
0.15 |
|
$ |
0.03 |
|
$ |
0.94 |
|
$ |
0.08 |
Settlement Gains |
|
$ |
(10,607) |
|
$ |
— |
|
$ |
(26,178) |
|
$ |
— |
Effect on Earnings per Share (diluted) |
|
$ |
(0.19) |
|
$ |
— |
|
$ |
(0.44) |
|
$ |
— |
Tax Cuts and Jobs Act of 2017 and Tax Charges Related to the Divestiture of DeVry University |
|
$ |
2,058 |
|
$ |
2,682 |
|
$ |
3,584 |
|
$ |
103,878 |
Effect on Earnings per Share (diluted) |
|
$ |
0.04 |
|
$ |
0.04 |
|
$ |
0.06 |
|
$ |
1.67 |
Net Tax Benefit on Carrington Loss |
|
$ |
— |
|
$ |
(48,903) |
|
$ |
— |
|
$ |
(48,903) |
Effect on Earnings per Share (diluted) |
|
$ |
— |
|
$ |
(0.79) |
|
$ |
— |
|
$ |
(0.79) |
Income Tax Impact on Non-GAAP Adjustments (1) |
|
$ |
3,342 |
|
$ |
(84) |
|
$ |
(1,732) |
|
$ |
(1,083) |
Effect on Earnings per Share (diluted) |
|
$ |
0.06 |
|
$ |
(0.00) |
|
$ |
(0.03) |
|
$ |
(0.02) |
Discontinued Operations, net of tax |
|
$ |
2,266 |
|
$ |
34,607 |
|
$ |
40,443 |
|
$ |
80,146 |
Effect on Earnings per Share (diluted) |
|
$ |
0.04 |
|
$ |
0.56 |
|
$ |
0.68 |
|
$ |
1.29 |
Net Income from Continuing Operations Excluding Special Items, net of tax |
|
$ |
55,387 |
|
$ |
52,991 |
|
$ |
167,210 |
|
$ |
172,874 |
Earnings per Share from Continuing Operations Excluding Special Items, net of tax (diluted) |
|
$ |
0.97 |
|
$ |
0.86 |
|
$ |
2.82 |
|
$ |
2.78 |
Diluted Shares used in EPS calculation |
|
|
57,284 |
|
|
61,659 |
|
|
59,330 |
|
|
62,280 |
ADTALEM GLOBAL EDUCATION INC. SUPPLEMENTAL REVENUE INFORMATION (unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2019 |
|
|||||||||||||
|
|
(in thousands) |
|
|||||||||||||
|
|
Medical and |
|
Financial |
|
Business and |
|
Home Office |
|
|
|
|
||||
Revenue: |
|
Healthcare |
|
Services |
|
Law |
|
and Other |
|
Consolidated |
|
|||||
Fiscal Year 2018 as Reported |
|
$ |
201,025 |
|
$ |
45,289 |
|
$ |
74,332 |
|
$ |
(859) |
|
$ |
319,787 |
|
Organic Growth (Decline) |
|
|
10,534 |
|
|
6,437 |
|
|
(2,752) |
|
|
53 |
|
|
14,272 |
|
Effect of Acquisitions |
|
|
— |
|
|
1,762 |
|
|
— |
|
|
— |
|
|
1,762 |
|
Effect of Currency Change |
|
|
— |
|
|
— |
|
|
(5,527) |
|
|
— |
|
|
(5,527) |
|
Fiscal Year 2019 as Reported |
|
$ |
211,559 |
|
$ |
53,488 |
|
$ |
66,053 |
|
$ |
(806) |
|
$ |
330,294 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year 2019 % Change: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Growth (Decline) |
|
|
5.2 |
% |
|
14.2 |
% |
|
(3.7) |
% |
|
NM |
|
|
4.5 |
% |
Effect of Acquisitions |
|
|
— |
|
|
3.9 |
% |
|
— |
|
|
NM |
|
|
0.6 |
% |
Constant Currency |
|
|
5.2 |
% |
|
18.1 |
% |
|
(3.7) |
% |
|
NM |
|
|
5.0 |
% |
Effect of Currency Change |
|
|
— |
|
|
— |
|
|
(7.4) |
% |
|
NM |
|
|
(1.7) |
% |
Fiscal Year 2019 % Change as Reported |
|
|
5.2 |
% |
|
18.1 |
% |
|
(11.1) |
% |
|
NM |
|
|
3.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended June 30, 2019 |
|
|||||||||||||
|
|
(in thousands) |
|
|||||||||||||
|
|
Medical and |
|
Financial |
|
Business and |
|
Home Office |
|
|
|
|
||||
Revenue: |
|
Healthcare |
|
Services |
|
Law |
|
and Other |
|
Consolidated |
|
|||||
Fiscal Year 2018 as Reported |
|
$ |
815,674 |
|
$ |
147,195 |
|
$ |
270,934 |
|
$ |
(2,592) |
|
$ |
1,231,211 |
|
Organic Growth (Decline) |
|
|
29,620 |
|
|
15,781 |
|
|
(9,389) |
|
|
(637) |
|
|
35,375 |
|
Effect of Acquisitions |
|
|
— |
|
|
4,235 |
|
|
1,100 |
|
|
— |
|
|
5,335 |
|
Hurricane Impact |
|
|
4,567 |
|
|
— |
|
|
— |
|
|
— |
|
|
4,567 |
|
Effect of Currency Change |
|
|
— |
|
|
— |
|
|
(36,801) |
|
|
— |
|
|
(36,801) |
|
Fiscal Year 2019 as Reported |
|
$ |
849,861 |
|
$ |
167,211 |
|
$ |
225,844 |
|
$ |
(3,229) |
|
$ |
1,239,687 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year 2019 % Change: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Growth (Decline) |
|
|
3.6 |
% |
|
10.7 |
% |
|
(3.5) |
% |
|
NM |
|
|
2.9 |
% |
Effect of Acquisitions |
|
|
— |
|
|
2.9 |
% |
|
0.4 |
% |
|
NM |
|
|
0.4 |
% |
Hurricane Impact |
|
|
0.6 |
% |
|
— |
|
|
— |
|
|
NM |
|
|
0.4 |
% |
Constant Currency |
|
|
4.2 |
% |
|
13.6 |
% |
|
(3.1) |
% |
|
NM |
|
|
3.7 |
% |
Effect of Currency Change |
|
|
— |
|
|
— |
|
|
(13.6) |
% |
|
NM |
|
|
(3.0) |
% |
Fiscal Year 2019 % Change as Reported |
|
|
4.2 |
% |
|
13.6 |
% |
|
(16.6) |
% |
|
NM |
|
|
0.7 |
% |
ADTALEM GLOBAL EDUCATION INC. SUPPLEMENTAL OPERATING COST AND EXPENSE INFORMATION (unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2019 |
|
|||||||||||||
|
|
(in thousands) |
|
|||||||||||||
|
|
Medical and |
|
Financial |
|
Business and |
|
Home Office |
|
|
|
|
||||
Total Operating Cost and Expense: |
|
Healthcare |
|
Services |
|
Law |
|
and Other |
|
Consolidated |
|
|||||
Fiscal Year 2018 as Reported |
|
$ |
152,937 |
|
$ |
32,676 |
|
$ |
60,651 |
|
$ |
8,356 |
|
$ |
254,620 |
|
Cost Increase (Reduction) |
|
|
18,717 |
|
|
2,465 |
|
|
(4,869) |
|
|
(7,811) |
|
|
8,502 |
|
Effect of Acquisitions |
|
|
— |
|
|
2,706 |
|
|
— |
|
|
— |
|
|
2,706 |
|
Restructuring Expense Change |
|
|
178 |
|
|
947 |
|
|
(259) |
|
|
6,081 |
|
|
6,947 |
|
Settlement Gains |
|
|
— |
|
|
— |
|
|
— |
|
|
(10,607) |
|
|
(10,607) |
|
Effect of Currency Change |
|
|
— |
|
|
— |
|
|
(3,766) |
|
|
— |
|
|
(3,766) |
|
Fiscal Year 2019 as Reported |
|
$ |
171,832 |
|
$ |
38,794 |
|
$ |
51,757 |
|
$ |
(3,981) |
|
$ |
258,402 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year 2019 % Change: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost Increase (Reduction) |
|
|
12.2 |
% |
|
7.5 |
% |
|
(8.0) |
% |
|
NM |
|
|
3.3 |
% |
Effect of Acquisitions |
|
|
— |
|
|
8.3 |
% |
|
— |
|
|
NM |
|
|
1.1 |
% |
Restructuring Expense Change |
|
|
0.1 |
% |
|
2.9 |
% |
|
(0.4) |
% |
|
NM |
|
|
2.7 |
% |
Settlement Gains |
|
|
— |
|
|
— |
|
|
— |
|
|
NM |
|
|
(4.2) |
% |
Constant Currency Change |
|
|
12.4 |
% |
|
18.7 |
% |
|
(8.5) |
% |
|
NM |
|
|
3.0 |
% |
Effect of Currency Change |
|
|
— |
|
|
— |
|
|
(6.2) |
% |
|
NM |
|
|
(1.5) |
% |
Fiscal Year 2019 % Change as Reported |
|
|
12.4 |
% |
|
18.7 |
% |
|
(14.7) |
% |
|
NM |
|
|
1.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended June 30, 2019 |
|
|||||||||||||
|
|
(in thousands) |
|
|||||||||||||
|
|
Medical and |
|
Financial |
|
Business and |
|
Home Office |
|
|
|
|
||||
Total Operating Cost and Expense: |
|
Healthcare |
|
Services |
|
Law |
|
and Other |
|
Consolidated |
|
|||||
Fiscal Year 2018 as Reported |
|
$ |
626,003 |
|
$ |
119,499 |
|
$ |
241,503 |
|
$ |
36,730 |
|
$ |
1,023,735 |
|
Cost Increase (Reduction) |
|
|
56,816 |
|
|
6,702 |
|
|
(4,302) |
|
|
(16,002) |
|
|
43,214 |
|
Effect of Acquisitions |
|
|
— |
|
|
5,901 |
|
|
650 |
|
|
— |
|
|
6,551 |
|
Hurricane Impact |
|
|
(13,372) |
|
|
— |
|
|
— |
|
|
— |
|
|
(13,372) |
|
Restructuring Expense Change |
|
|
40,863 |
|
|
947 |
|
|
1,642 |
|
|
7,406 |
|
|
50,858 |
|
Settlement Gains |
|
|
(15,571) |
|
|
— |
|
|
— |
|
|
(10,607) |
|
|
(26,178) |
|
Effect of Currency Change |
|
|
— |
|
|
— |
|
|
(31,110) |
|
|
— |
|
|
(31,110) |
|
Fiscal Year 2019 as Reported |
|
$ |
694,739 |
|
$ |
133,049 |
|
$ |
208,383 |
|
$ |
17,527 |
|
$ |
1,053,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year 2019 % Change: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost Increase (Reduction) |
|
|
9.1 |
% |
|
5.6 |
% |
|
(1.8) |
% |
|
NM |
|
|
4.2 |
% |
Effect of Acquisitions |
|
|
— |
|
|
4.9 |
% |
|
0.3 |
% |
|
NM |
|
|
0.6 |
% |
Hurricane Impact |
|
|
(2.1) |
% |
|
— |
|
|
— |
|
|
NM |
|
|
(1.3) |
% |
Restructuring Expense Change |
|
|
6.5 |
% |
|
0.8 |
% |
|
0.7 |
% |
|
NM |
|
|
5.0 |
% |
Settlement Gains |
|
|
(2.5) |
% |
|
— |
|
|
— |
|
|
NM |
|
|
(2.6) |
% |
Constant Currency Change |
|
|
11.0 |
% |
|
11.3 |
% |
|
(0.8) |
% |
|
NM |
|
|
6.0 |
% |
Effect of Currency Change |
|
|
— |
|
|
— |
|
|
(12.9) |
% |
|
NM |
|
|
(3.0) |
% |
Fiscal Year 2019 % Change as Reported |
|
|
11.0 |
% |
|
11.3 |
% |
|
(13.7) |
% |
|
NM |
|
|
2.9 |
% |
ADTALEM GLOBAL EDUCATION INC. SUPPLEMENTAL OPERATING INCOME INFORMATION (unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2019 |
|||||||||||||
|
|
(in thousands) |
|||||||||||||
|
|
Medical and |
|
Financial |
|
Business and |
|
Home Office |
|
|
|
||||
Operating Income (Loss): |
|
Healthcare |
|
Services |
|
Law |
|
and Other |
|
Consolidated |
|||||
Fiscal Year 2018 as Reported |
|
$ |
48,089 |
|
$ |
12,613 |
|
$ |
13,682 |
|
$ |
(9,217) |
|
$ |
65,167 |
Organic Change |
|
|
(8,185) |
|
|
3,972 |
|
|
2,116 |
|
|
7,867 |
|
|
5,770 |
Effect of Acquisitions |
|
|
— |
|
|
(944) |
|
|
— |
|
|
— |
|
|
(944) |
Restructuring Expense Change |
|
|
(178) |
|
|
(947) |
|
|
259 |
|
|
(6,081) |
|
|
(6,947) |
Settlement Gains |
|
|
— |
|
|
— |
|
|
— |
|
|
10,607 |
|
|
10,607 |
Effect of Currency Change |
|
|
— |
|
|
— |
|
|
(1,761) |
|
|
— |
|
|
(1,761) |
Fiscal Year 2019 as Reported |
|
$ |
39,726 |
|
$ |
14,694 |
|
$ |
14,296 |
|
$ |
3,176 |
|
$ |
71,892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended June 30, 2019 |
|||||||||||||
|
|
(in thousands) |
|||||||||||||
|
|
Medical and |
|
Financial |
|
Business and |
|
Home Office |
|
|
|
||||
Operating Income (Loss): |
|
Healthcare |
|
Services |
|
Law |
|
and Other |
|
Consolidated |
|||||
Fiscal Year 2018 as Reported |
|
$ |
189,672 |
|
$ |
27,695 |
|
$ |
29,431 |
|
$ |
(39,322) |
|
$ |
207,476 |
Organic Change |
|
|
(27,197) |
|
|
9,081 |
|
|
(5,087) |
|
|
15,364 |
|
|
(7,839) |
Effect of Acquisitions |
|
|
— |
|
|
(1,666) |
|
|
450 |
|
|
— |
|
|
(1,216) |
Hurricane Impact |
|
|
17,939 |
|
|
— |
|
|
— |
|
|
— |
|
|
17,939 |
Restructuring Expense Change |
|
|
(40,863) |
|
|
(947) |
|
|
(1,642) |
|
|
(7,406) |
|
|
(50,858) |
Settlement Gains |
|
|
15,571 |
|
|
— |
|
|
— |
|
|
10,607 |
|
|
26,178 |
Effect of Currency Change |
|
|
— |
|
|
— |
|
|
(5,691) |
|
|
— |
|
|
(5,691) |
Fiscal Year 2019 as Reported |
|
$ |
155,122 |
|
$ |
34,163 |
|
$ |
17,461 |
|
$ |
(20,757) |
|
$ |
185,989 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20190822005133/en/
Investor Contact:
John Kristoff
[email protected]
312-651-1437
Media Contact:
Ernie Gibble
[email protected]
630-353-9920
Source: Adtalem Global Education Inc.