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Mar 31, 2022
Adtalem Q3 2022 Earnings Report
Announced fiscal third quarter 2022 results, with a strengthened balance sheet and capital allocation driving increased FY’22 EPS guidance.
Key Takeaways
Adtalem Global Education reported a revenue increase of 58.8% to $365.6 million compared to the prior year, driven by the acquisition of Walden. Diluted earnings per share was $7.09, and net income attributable to Adtalem was $349.8 million, primarily due to the gain on the sale of the Financial Services segment.
Completed the divestiture of the Financial Services segment for $1 billion.
Utilized $770 million from the divestiture to pay down debt, reducing it by 46.7%.
Repurchased 4.7 million shares for $150 million in an accelerated share buyback program.
Achieved high first-time residency attainment rates at the medical schools.
Adtalem
Adtalem
Adtalem Revenue by Segment
Revenue by Segment
Chamberlain Revenue
CapyFin.comWalden Revenue
CapyFin.comMedical and Veterinary Revenue
CapyFin.com Forward Guidance
Adtalem reiterated its full fiscal year 2022 guidance for adjusted revenue, excluding special items, to be within the range of $1,350 million and $1,390 million, and increased the fiscal year 2022 guidance for adjusted diluted earnings per share from continuing operations, excluding special items, in excess of 8% to a range of $3.15 to $3.35.
Positive Outlook
- Use of $770 million of net proceeds from the sale of the Financial Services segment towards repayment of debt, thereby reducing interest expense.
- Accelerated share repurchase program for $150 million of the company’s common stock, which is expected to be completed by the second quarter of fiscal 2023, reducing outstanding shares.
- Revenue excluding special items expected between $1,350 million and $1,390 million.
- Adjusted diluted EPS from continuing operations excluding special items expected between $3.15 and $3.35.
- Focus on healthcare education and talent provision.
Challenges Ahead
- Potential impacts of the COVID-19 pandemic.
- Uncertainties related to forward-looking statements.
- Risk factors described in the company's filings with the SEC.
- Possible business or asset acquisitions or dispositions.
- Additional charges to special items or additional special items not currently identified.
Revenue & Expenses
Visualization of income flow from segment revenue to net income