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Dec 31, 2019

Adtalem Q2 2020 Earnings Report

Adtalem's revenue increased, driven by strategic investments and enrollment growth, but earnings decreased due to increased expenses and special items.

Key Takeaways

Adtalem Global Education reported a 4.8% increase in revenue for the fiscal second quarter 2020, reaching $266.2 million. Diluted earnings per share from continuing operations was $0.10, while diluted earnings per share from continuing operations, excluding special items, was $0.57. The company saw increased enrollments at Chamberlain University and completed the integration of OnCourse Learning.

Revenue increased by 4.8% to $266.2 million compared to the prior year.

Diluted earnings per share from continuing operations was $0.10, while diluted earnings per share from continuing operations, excluding special items, was $0.57, flat when compared with prior year.

Operating income from continuing operations was $40.3 million, while operating income from continuing operations, excluding special items, was $42.3 million, a 9.4% decrease compared with prior year.

Net income from continuing operations was $5.5 million, while net income from continuing operations, excluding special items, was $30.9 million, a 9.8% decrease compared with prior year.

Total Revenue
$266M
Previous year: $317M
-15.9%
EPS
$0.57
Previous year: $0.74
-23.0%
New Students
2.71K
Previous year: 2.62K
+3.6%
Total Students
36.82K
Previous year: 36.72K
+0.3%
Gross Profit
$139M
Previous year: $158M
-12.3%
Cash and Equivalents
$67.3M
Previous year: $208M
-67.7%
Free Cash Flow
-$71M
Previous year: -$77M
-7.8%
Total Assets
$2.39B
Previous year: $2.12B
+12.6%

Adtalem

Adtalem

Adtalem Revenue by Segment

Forward Guidance

The outlook for the full year 2020 remains unchanged from our guidance issued in the first quarter earnings press release.

Positive Outlook

  • Revenue is expected to grow 5% to 7% compared with the prior year
  • Effective income tax rate is expected to be in the 19% to 20% range
  • Earnings per share from continuing operations, excluding special items, are expected to grow in the 7 to 9% range compared with the prior year
  • Full-year capital spending is expected to be in the $45 million to $50 million range

Revenue & Expenses

Visualization of income flow from segment revenue to net income