Adtalem Global Education Inc.
Segment Information
(unaudited)
(in thousands)
| | | | | | | | | | | | |
| | Three Months Ended |
| | September 30, |
| | | | | | | | Increase/(Decrease) | |
| | 2024 | | 2023 | | $ | | % | |
Revenue: | | | | | | | | | | | | |
Chamberlain | | $ | 167,930 | | $ | 142,596 | | $ | 25,334 | | 17.8 | % |
Walden | | | 161,513 | | | 141,608 | | | 19,905 | | 14.1 | % |
Medical and Veterinary | | | 87,957 | | | 84,641 | | | 3,316 | | 3.9 | % |
Total consolidated revenue | | $ | 417,400 | | $ | 368,845 | | $ | 48,555 | | 13.2 | % |
Operating income (loss): | | | | | | | | | | | | |
Chamberlain | | $ | 25,974 | | $ | 24,324 | | $ | 1,650 | | 6.8 | % |
Walden | | | 39,837 | | | 1,938 | | | 37,899 | | 1,955.6 | % |
Medical and Veterinary | | | 14,671 | | | 14,363 | | | 308 | | 2.1 | % |
Home Office | | | (10,244) | | | (12,431) | | | 2,187 | | 17.6 | % |
Total consolidated operating income | | $ | 70,238 | | $ | 28,194 | | $ | 42,044 | | 149.1 | % |
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 for period-over-period comparisons. We use these supplemental non-GAAP financial measures internally in our assessment of performance and budgeting process. However, these non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The following are non-GAAP financial measures used in the subsequent GAAP to non-GAAP reconciliation tables:
Adjusted net income (most comparable GAAP measure: net income) – Measure of Adtalem’s net income adjusted for restructuring expense, business integration expense, amortization of acquired intangible assets, litigation reserve, debt modification costs, and loss from discontinued operations.
Adjusted earnings per share (most comparable GAAP measure: diluted earnings per share) – Measure of Adtalem’s diluted earnings per share adjusted for restructuring expense, business integration expense, amortization of acquired intangible assets, litigation reserve, debt modification costs, and loss from discontinued operations.
Adjusted operating income (most comparable GAAP measure: operating income) – Measure of Adtalem’s operating income adjusted for restructuring expense, business integration expense, amortization of acquired intangible assets, litigation reserve, and debt modification costs. This measure is applied on a consolidated and segment basis, depending on the context of the discussion.
Adjusted EBITDA (most comparable GAAP measure: net income) – Measure of Adtalem’s net income adjusted for loss from discontinued operations, interest expense, other income, net, provision for income taxes, depreciation, amortization of acquired intangible assets, amortization of cloud computing implementation assets, stock-based compensation, restructuring expense, business integration expense, litigation reserve, and debt modification costs. This measure is applied on a consolidated and segment basis, depending on the context of the discussion. Provision for income taxes, interest expense, and other income, net is not recorded at the reportable segments, and therefore, the segment adjusted EBITDA reconciliations begin with operating income.
Free cash flow (most comparable GAAP measure: net cash provided by operating activities-continuing operations) – Defined as net cash provided by operating activities-continuing operations less capital expenditures.
