Adtalem Global Education, Inc. (NYSE:ATGE) Q4 2021 Earnings Conference Call August 19, 2021 5:00 PM ET Company Participants John Kristoff - VP, Global Communications Lisa Wardell - Chairman, President & CEO Robert Phelan - VP, Interim CFO & CAO Stephen Beard - COO & Head, Financial Services Conference Call Participants Jeffrey Silber - BMO Capital Markets Jeffrey Meuler - Robert W. Baird & Co. Alexander Paris - Barrington Research Associates Gregory Pendy - Sidoti & Company Operator Greetings, and welcome t ...

COVID-19 Impact - Approximately 30% of Chamberlain's students are campus-based pursuing their BSN degree, with no significant revenue losses due to COVID-19 in fiscal years 2020 and 2021[57] - AUC and RUSM transitioned medical students to online learning at the onset of COVID-19, with no significant revenue losses in fiscal years 2020 and 2021, except for housing operations[58] - Clinical rotations for AUC and RUSM students were temporarily suspended in March 2020, impacting revenue and operating income, but all clinical partners resumed programs by June 2021[61] - RUSVM's basic science veterinary students transitioned to online learning, with no significant revenue losses in fiscal years 2020 and 2021, and all students returned to St. Kitts by May 2021[62] - Adtalem's remote operations have not adversely affected financial reporting systems or internal controls, with no significant home office costs incurred related to COVID-19 in fiscal years 2020 and 2021[67] Financial Performance - Financial Services experienced revenue losses in fiscal years 2020 and 2021 due to the cancellation of live conferences, with expectations of continued negative impacts in fiscal year 2022[63] - Becker, a leader in CPA exam preparation, has seen a decline in first-time CPA exam test takers at a compound annual rate of 1.8% over the last ten years[75] - Adtalem's primary source of liquidity comes from student payments, which include federal financial aid, private loans, and other educational fees[85] - In fiscal year 2020, 59% of Adtalem's revenue was derived from federal assistance (Title IV), while 39% came from student accounts and other sources[86] - Adtalem's institutions have maintained a composite score exceeding the required minimum of 1.5 for financial responsibility, although recent changes may negatively impact future scores[126] Financial Aid and Scholarships - Chamberlain students can receive Federal Pell Grants ranging from $320 to $9,517 for the 2020-2021 school year, depending on financial need[89] - AUC students may be eligible for institutional scholarships ranging from $5,000 to $80,000 to cover tuition and fees[103] - RUSM offers institutional scholarships ranging from $5,000 to $108,000 for housing, tuition, and fees[103] - Employer-provided tuition assistance for Chamberlain students allows for deferred payment plans, with a maximum annual exclusion of $5,250 from taxable income[108] - Adtalem does not maintain a preferred lender list for private loans but provides information on lenders that have previously offered loans to students[101] Regulatory Compliance - The financial aid landscape is influenced by political and governmental budgetary considerations, particularly regarding the reauthorization of the Higher Education Act[87] - Institutions must maintain administrative capability to participate in Title IV programs, with failure to meet criteria potentially leading to additional scrutiny or loss of eligibility[127] - The HEA requires institutions to be authorized to operate in each state where they have a physical presence, and Adtalem's Chamberlain University is authorized in all necessary jurisdictions[129] - Adtalem is currently facing multiple lawsuits related to regulatory scrutiny in the proprietary education sector, which may impact its operations[114] Student Outcomes - The cohort default rates for Adtalem's institutions are significantly lower than the national average, with Chamberlain University at 3.4% and American University of the Caribbean at 1.4% for fiscal year 2017[136] - The latest cohort default rates for Adtalem's institutions indicate strong performance, with Ross University School of Medicine at 1.3% and Ross University School of Veterinary Medicine at 0.9%[136] Interest Rates and Financial Instruments - The interest rate on Adtalem's Term B Loan is 3.10%, with $291.0 million in outstanding borrowings, meaning a 100 basis point increase in short-term interest rates would result in an additional $2.9 million of annual interest expense[467] - As of June 30, 2021, the fair value of the interest rate swap was a loss of $8.9 million, and a 100 basis point increase in short-term interest rates would result in a $10.6 million change in value of the swap[471] Employee Statistics and Engagement - As of June 30, 2021, Adtalem had a total of 4,426 employees, including 2,005 at Chamberlain University and 967 at Medical and Veterinary Schools[146] - Adtalem's employee diversity statistics show that 79% of all levels are female and 36% are people of color, with 48% of executive levels being female[154] - Engagement Survey results indicate that 71% of employees rated their enablement positively, while 75% rated their engagement positively[150] - The company has been recognized for its diversity and inclusion efforts, including being named one of Forbes' Best Employers for Diversity in 2021[155] Financial Responsibility and Surety Bonds - Adtalem has posted approximately $8.9 million of surety bonds with regulatory authorities on behalf of its institutions[143] - Changes to the financial responsibility regulations effective July 1, 2020, have negatively affected Adtalem's composite score, but management does not anticipate falling below the minimum threshold[126] - Adtalem's institutions are subject to heightened cash monitoring if their financial responsibility scores fall below 1.5, which could impact their ability to participate in federal financial assistance programs[126] - Adtalem has successfully demonstrated its financial responsibility where required, ensuring continued operations in various states[143]

Adtalem Global Education Inc. (NYSE:ATGE) Q3 2021 Earnings Conference Call April 29, 2021 5:00 PM ET Company Participants Maureen Resac - Vice President, Treasury and Investor Relations Lisa Wardell - Chairman and Chief Executive Officer Bob Phelan - Interim Chief Financial Officer Stephen Beard - Chief Operating Officer Conference Call Participants Jeff Meuler - Baird Jeff Silber - BMO Capital Markets Greg Pendy - Sidoti Operator Greetings and welcome to Adtalem Global Education Third Quarter Earnings Conf ...

Financial Data and Key Metrics Changes - Revenue increased by 6.4% to $283.1 million, and diluted earnings per share from continuing operations grew by 35.1% to $0.77 [29][32] - Operating income excluding special items increased by 24.4% to $52.6 million, driven by increased revenue and efficiency [31][32] - Net income from continuing operations excluding special items was $40.5 million, compared to $30.9 million in the prior year [32] Business Line Data and Key Metrics Changes - Medical and Healthcare revenue increased by 6.5% to $234.4 million, primarily driven by Chamberlain's strong enrollment [32][34] - Chamberlain's revenue increased by 13.2%, with new and total student enrollment rising by 8.1% and 10.2% respectively [33] - Financial Services segment revenue grew by 5.9% to $48.7 million, driven by OnCourse Learning and Becker [34] Market Data and Key Metrics Changes - The demand for healthcare professionals remains strong, with Adtalem institutions contributing to vaccine distribution efforts [8][9] - The U.S. nursing education market is valued at $28 billion and is expected to grow at a 21% CAGR to $60 billion by 2024 [11] - The average cohort default rate for Adtalem's institutions is significantly lower than the national average, indicating strong student outcomes [26] Company Strategy and Development Direction - The company aims to increase the talent supply for healthcare professionals and address workforce shortages exacerbated by the pandemic [9][10] - The planned acquisition of Walden University is expected to enhance online capabilities and healthcare offerings, with 77% of Walden's revenue coming from healthcare-related programs [10][12] - Adtalem is focused on operational efficiency and streamlining its portfolio to enhance shareholder value [27][28] Management's Comments on Operating Environment and Future Outlook - Management raised full-year earnings guidance due to strong operational execution and enrollment trends [8][38] - The company anticipates modest COVID-19 related headwinds impacting revenue and expenses in the near term, but expects to overcome these challenges [39] - Long-term growth is expected to align with mid-single-digit revenue growth and low double-digit earnings growth targets [40] Other Important Information - The company has generated $211 million of free cash flow on a trailing 12-month basis, with expectations for significant growth in the coming years [37] - Adtalem is committed to increasing diversity and access in medicine through partnerships with HBCUs and HSIs [20] Q&A Session Summary Question: What are the specific COVID-19 headwinds impacting revenue? - Management noted moderate headwinds related to clinical supply and increased costs for campus safety measures [44] Question: Can you provide quality metrics for Walden similar to those for Chamberlain? - Management highlighted Walden's cohort default rate of around 6.8%, which is competitive compared to peers, and emphasized the need for improvement in employer partnerships [46][47] Question: What is the status of the DOJ inquiry regarding Walden? - Management stated that they have not found evidence supporting the allegations and are conducting a thorough investigation [55]

Adtalem Global Education Inc. (NYSE:ATGE) Q1 2021 Earnings Conference Call November 5, 2020 5:00 PM ET Company Participants Maureen Resac - VP IR & Treasury Lisa Wardell - Chairman, President & CEO Michael Randolfi - CFO & Treasurer Conference Call Participants Gregory Pendy - Sidoti & Company Operator Hello, and welcome to the Adtalem Global Education First Quarter Fiscal Year 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow ...