Adtalem Education (ATGE) - 2025 Q2 - Quarterly Results

Enrollment Growth - Total enrollment increased by 11.6% year-over-year, reaching 91,264 students[1] - Chamberlain University reported an 11.5% increase in enrollment, achieving the highest total enrollment in its history[5] - Walden University experienced a 13.2% increase in enrollment, marking its sixth consecutive quarter of growth[5] - Chamberlain University enrolled over 3,000 MSN-PMHNP students, addressing critical healthcare workforce shortages[5] Revenue and Earnings - Revenue for the second quarter was $447.7 million, reflecting a 13.9% increase compared to the prior year[5] - Total consolidated revenue for the three months ended December 31, 2024, was $447.729 million, representing a 13.9% increase from $393.242 million in the same period of 2023[26] - Fiscal year 2025 revenue guidance was raised to a range of $1,730 million to $1,760 million, indicating approximately 9.0% to 11.0% growth year-over-year[10] - Adjusted earnings per share guidance for fiscal year 2025 is projected to be between $6.10 and $6.30, representing a growth of approximately 21.5% to 25.5% year-over-year[10] Income and Profitability - Diluted earnings per share were $1.98, with adjusted EPS at $1.81, marking a 47.2% growth year-over-year[1] - Operating income for the same period increased by 77.2% to $103.870 million, compared to $58.612 million in the prior year[26] - Income from continuing operations for the six months ended December 31, 2024, was $117.421 million, up from $49.672 million in 2023, marking a significant increase of 136.1%[24] - Basic earnings per share from continuing operations rose to $3.12 for the six months ended December 31, 2024, compared to $1.22 in the same period of 2023, reflecting a 155.7% increase[26] Segment Performance - Chamberlain segment revenue increased by 17.9% to $180.986 million for the three months ended December 31, 2024, from $153.553 million in 2023[26] - Walden segment revenue grew by 16.7% to $171.306 million for the three months ended December 31, 2024, compared to $146.808 million in the same period of 2023[26] Cash Flow and Financial Position - Cash, cash equivalents, and restricted cash at the end of the period were $195.419 million, down from $221.202 million at the beginning of the period[24] - The company reported a net cash provided by operating activities of $70.297 million for the six months ended December 31, 2024, compared to $81.868 million in 2023[24] - Free cash flow (non-GAAP) for Adtalem Global Education was $188,887,000 for the twelve months ended FY24 Q2, showing strong cash generation capabilities[44] Operating Income and Margins - Adtalem Global Education's GAAP operating income rose by 77.2% to $103,870,000 for the three months ended December 31, 2024, compared to $58,612,000 in 2023[36] - Walden's GAAP operating income surged by 126.4% to $48,898,000 for the three months ended December 31, 2024, from $21,598,000 in 2023[36] - Operating margin (GAAP) for Adtalem improved to 23.2% in Q4 2024 from 14.9% in Q4 2023[36] - Walden's operating margin (GAAP) increased to 28.5% for the three months ended December 31, 2024, compared to 14.7% in 2023[36] Adjusted Metrics - Adjusted EBITDA was $125.0 million, up 35.1% year-over-year, with an adjusted EBITDA margin of 27.9%[5] - Adjusted EBITDA for Adtalem Global Education increased by 35.1% to $125,012,000 for the three months ended December 31, 2024, compared to $92,555,000 in the same period of 2023[40] - Adjusted net income (non-GAAP) for Adtalem Global Education was $69,398,000 for the three months ended December 31, 2024, reflecting an increase from $50,268,000 in the same period of 2023[40] Debt and Expenses - Long-term debt as of December 31, 2024, stood at $658.283 million[46] - Net debt (non-GAAP) after accounting for cash and cash equivalents was $464.325 million[46] - Interest expense incurred during the period was $59.7 million[46] - Provision for income taxes amounted to $48.84 million[46] - Depreciation and amortization expenses totaled $66.875 million[46] - Stock-based compensation expenses were $33.36 million[46] - Restructuring expenses recorded were $3.542 million[46]