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Sep 30, 2020

Adtalem Q1 2021 Earnings Report

Adtalem reported robust revenue and earnings per share growth, driven by enrollment increases and solid performance in Financial Services.

Key Takeaways

Adtalem Global Education reported a 5.4% increase in revenue to $268.2 million and a diluted EPS of $0.38. Excluding special items, diluted EPS from continuing operations was $0.78, a 129% increase. The company experienced double-digit enrollment growth in Chamberlain University and solid single-digit growth across its medical and veterinary schools. COVID-19 impacted revenue and EPS by approximately $14 million and $0.11, respectively.

Revenue increased by 5.4% compared to the prior year.

New and total student enrollment increased by 12.2% and 10.8%, respectively.

Diluted earnings per share was $0.38, with diluted earnings per share from continuing operations excluding special items at $0.78, a 129% increase.

Operating income was $36.7 million, with operating income excluding special items at $54.4 million, a 97.7% increase.

Total Revenue
$268M
Previous year: $255M
+5.4%
EPS
$0.78
Previous year: $0.34
+129.4%
Gross Profit
$155M
Previous year: $127M
+22.1%
Cash and Equivalents
$561M
Previous year: $121M
+363.5%
Free Cash Flow
$65.5M
Previous year: $37M
+76.8%
Total Assets
$2.33B
Previous year: $2.46B
-5.3%

Adtalem

Adtalem

Adtalem Revenue by Segment

Forward Guidance

Adtalem expects revenue growth of 5-7% and growth for diluted earnings per share from continuing operations excluding special items of 25-30% for the full fiscal year 2021.

Positive Outlook

  • Revenue growth of 5-7% is expected.
  • Diluted earnings per share from continuing operations excluding special items is expected to grow 25-30%.
  • Strong enrollment trends in Medical and Healthcare.
  • Solid performance in Financial Services.
  • Strategic investments driving growth.

Challenges Ahead

  • Forward-looking statements are subject to risks and uncertainties.
  • COVID-19 pandemic may continue to impact results.
  • Restructuring expenses may impact earnings.
  • Business acquisition and integration expenses may impact earnings.
  • Potential impact of any business or asset acquisitions or dispositions during the remainder of fiscal year 2021.

Revenue & Expenses

Visualization of income flow from segment revenue to net income