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•	Achieved re-accreditation for American University of the Caribbean School of Medicine from Accreditation Commission on Colleges of Medicine for the maximum accreditation period of six years through 2027, reaffirming the university’s strong student outcomes

•	Entered strategic partnership with Society of Teachers of Family Medicine as the lead philanthropic partner committed to combatting inequality and encouraging civic engagement across the entire healthcare sector

Segment Highlights

 

Chamberlain

 

Second quarter segment revenue decreased 2.0% to $139.1 million compared with the prior year, and segment operating income declined 21.6% to $25.5 million due primarily to increased marketing expense and higher costs associated with a return to in-person campus instruction.

 

 

Walden

 

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About Adtalem Global Education

Adtalem Global Education (NYSE: ATGE), partners with organizations in the healthcare and financial services industries to solve critical workforce talent needs by expanding access to education, certifications and upskilling programs at scale. With a dedicated focus on driving strong outcomes that increase workforce preparedness, Adtalem empowers a diverse learner population to achieve their goals and make inspiring contributions to the global community. Adtalem is the parent organization of ACAMS, American University of the Caribbean School of Medicine, Becker Professional Education, Chamberlain University, EduPristine, OnCourse Learning, Ross University School of Medicine, Ross University School of Veterinary Medicine and Walden University. Adtalem has more than 10,000 employees, a network of more than 275,000 alumni and serves over 89,000 members across 200 countries and territories. Adtalem was named one of America’s Most Responsible Companies 2021 by Newsweek and one of America’s Best Employers for Diversity 2021 by Forbes. Follow Adtalem on Twitter (@adtalemglobal), LinkedIn or visit adtalem.com for more information.

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 statement that does not directly relate to any historical or current fact, which includes statements regarding the future impacts of the COVID-19 pandemic, and the efficacy and distribution of the vaccines, the expected synergies from the recent Walden acquisition, and the pending sale of the financial services segment including our anticipated net proceeds and whether the pending sale will be completed in the anticipated timeframe, if at all. Forward-looking statements can also be identified by words such as “future,” “believe,” “expect,” “anticipate,” “estimate,” “plan,” “intend,” “may,” “will,” “would,” “could,” “can,” “continue,” “preliminary,” “range,” and similar terms. These forward-looking statements are subject to risk and uncertainties that could cause actual results to differ materially from those described in the statements. These risk and uncertainties include the risk factors described in Item 1A. “Risk Factors” of our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) and our other filings with the SEC. These forward-looking statements are based on information available to us as of the date any such statements are made, and we do not undertake any obligation to update any forward-looking statement, except as required by law.

		2Q 2022				2Q 2021				% Change
Adtalem Global Education Student Enrollments
New students(1)			7,915				9,046				-12.5	%
Total students			80,255				85,509				-6.1	%
Chamberlain University
November Session
New students(2)			2,916				2,931				-0.5	%
Total students			33,648				34,387				-2.1	%
Walden University(3)
October - December Quarter
New students			4,999				6,115				-18.3	%
Total students			41,158				45,272				-9.1	%
Medical & Veterinary
New students(4)			n/a				n/a				n/a
Total students			5,449				5,850				-6.9	%

1)	Includes intakes from 2Q FY 2022 enrollment sessions at Adtalem’s postsecondary institutions.

2)	Post-licensure online programs only; Pre-licensure campus-based programs start in September, January and May.

3)	Prior year Walden enrollment figures are as calculated by Walden while controlled by Laureate Education, Inc., and are included here for comparative purposes only.

4)	Medical and Veterinary segment does not have an intake period during 2Q FY 2022.

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Adtalem Global Education Inc.

Consolidated Balance Sheets

(unaudited)

(in thousands, except par value)

		December 31,				June 30,				December 31,
		2021				2021				2020
Assets:
Current assets:
Cash and cash equivalents		$	275,420			$	476,377			$	415,907
Restricted cash			1,224				819,003				39,425
Accounts receivable, net			92,744				43,041				71,614
Prepaid expenses and other current assets			166,722				128,217				96,910
Current assets held for sale			74,397				48,315				56,704
Total current assets			610,507				1,514,953				680,560
Noncurrent assets:
Property and equipment, net			301,666				283,692				279,186
Operating lease assets			155,356				167,365				191,028
Deferred income taxes			61,536				53,486				53,592
Intangible assets, net			923,701				137,500				137,500
Goodwill			960,058				310,210				310,210
Other assets, net			117,621				86,040				88,362
Noncurrent assets held for sale			529,328				531,597				534,442
Total noncurrent assets			3,049,266				1,569,890				1,594,320
Total assets		$	3,659,773			$	3,084,843			$	2,274,880
Liabilities and shareholders' equity:
Current liabilities:
Accounts payable		$	65,422			$	42,421			$	39,255
Accrued payroll and benefits			52,086				54,331				31,983
Accrued liabilities			134,585				126,344				97,013
Deferred revenue			124,347				68,807				69,652
Current operating lease liabilities			54,845				53,991				50,657
Current portion of long-term debt			8,500				3,000				3,000
Current liabilities held for sale			57,690				59,913				49,296
Total current liabilities			497,475				408,807				340,856
Noncurrent liabilities:
Long-term debt			1,599,538				1,067,711				284,131
Long-term operating lease liabilities			155,827				167,066				194,355
Deferred income taxes			27,127				26,177				24,732
Other liabilities			58,040				78,705				80,883
Noncurrent liabilities held for sale			32,086				33,517				33,549
Total noncurrent liabilities			1,872,618				1,373,176				617,650
Total liabilities			2,370,093				1,781,983				958,506
Commitments and contingencies
Redeemable noncontrolling interest			1,790				1,790				2,595
Shareholders' equity:
Common stock, $0.01 par value per share, 200,000 shares authorized; 49,797, 49,253, and 50,632 shares outstanding as of December 31, 2021, June 30, 2021, and December 31, 2020, respectively			817				811				810
Additional paid-in capital			542,296				519,826				512,102
Retained earnings			1,964,954				2,005,105				1,970,813
Accumulated other comprehensive loss			(634	)			(7,365	)			(7,711	)
Treasury stock, at cost, 31,908, 31,846, and 30,389 shares as of December 31, 2021, June 30, 2021, and December 31, 2020, respectively			(1,219,543	)			(1,217,307	)			(1,162,235	)
Total shareholders' equity			1,287,890				1,301,070				1,313,779
Total liabilities and shareholders' equity		$	3,659,773			$	3,084,843			$	2,274,880

	Three Months Ended								Six Months Ended
	December 31,								December 31,
	2021				2020				2021				2020
Revenue	$	371,198			$	234,396			$	660,268			$	453,222
Operating cost and expense:
Cost of educational services		180,420				120,827				332,470				226,520
Student services and administrative expense		153,597				72,260				283,033				143,090
Restructuring expense		3,387				1,166				6,481				4,082
Business acquisition and integration expense		9,060				11,079				35,613				24,515
Total operating cost and expense		346,464				205,332				657,597				398,207
Operating income		24,734				29,064				2,671				55,015
Other income (expense):
Interest and dividend income		861				1,219				1,739				2,223
Interest expense		(25,929	)			(3,736	)			(73,322	)			(7,428	)
Investment gain		—				1,005				—				1,523
Net other expense		(25,068	)			(1,512	)			(71,583	)			(3,682	)
(Loss) income from continuing operations before income taxes		(334	)			27,552				(68,912	)			51,333
Benefit from (provision for) income taxes		39,368				(3,611	)			30,764				(7,806	)
Income (loss) from continuing operations		39,034				23,941				(38,148	)			43,527
Discontinued operations:
Income (loss) from discontinued operations before income taxes		4,159				72				(1,891	)			743
Provision for income taxes		(25,340	)			(864	)			(112	)			(1,282	)
Loss from discontinued operations		(21,181	)			(792	)			(2,003	)			(539	)
Net income (loss)		17,853				23,149				(40,151	)			42,988
Net loss attributable to redeemable noncontrolling interest from discontinued operations		—				166				—				257
Net income (loss) attributable to Adtalem Global Education	$	17,853			$	23,315			$	(40,151	)		$	43,245
Amounts attributable to Adtalem Global Education:
Net income (loss) from continuing operations	$	39,034			$	23,941			$	(38,148	)		$	43,527
Net loss from discontinued operations		(21,181	)			(626	)			(2,003	)			(282	)
Net income (loss) attributable to Adtalem Global Education	$	17,853			$	23,315			$	(40,151	)		$	43,245
Earnings (loss) per share attributable to Adtalem Global Education:
Basic:
Continuing operations	$	0.78			$	0.46			$	(0.77	)		$	0.83
Discontinued operations	$	(0.43	)		$	(0.01	)		$	(0.04	)		$	(0.01	)
Net	$	0.36			$	0.45			$	(0.81	)		$	0.83
Diluted:
Continuing operations	$	0.78			$	0.46			$	(0.77	)		$	0.83
Discontinued operations	$	(0.42	)		$	(0.01	)		$	(0.04	)		$	(0.01	)
Net	$	0.36			$	0.44			$	(0.81	)		$	0.82
Weighted-average shares outstanding:
Basic shares		49,776				52,251				49,719				52,358
Diluted shares		50,237				52,441				49,719				52,622

		Year Ended
		June 30, 2022
Expected (loss) earnings per share, diluted (GAAP)	$	(0.11) to 0.09
Expected effects on diluted earnings per share:
Purchase accounting adjustment - deferred revenue		0.17
CEO transition costs		0.12
Restructuring expense		0.13
Business acquisition and integration costs		0.71
Estimated purchase accounting adjustment - intangible amortization		1.94
Pre-acquisition interest expense		0.63
Estimated incremental acquisition integration costs		0.26
Estimated income tax impact on non-GAAP adjustments(1)		(0.99	)
Loss from discontinued operations		0.04
Expected adjusted earnings per share from continuing operations excluding special items, diluted (non-GAAP)(2)	$	2.90 to 3.10
Diluted shares used in EPS calculation		50,166

	Year Ended
	June 30, 2022
Expected revenue (GAAP)	$	1,341 to 1,381
Estimated incremental purchase accounting adjustment - deferred revenue		9
Expected revenue excluding special items (non-GAAP)(3)	$	1,350 to 1,390