Adtalem Global Education Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Adtalem Global Education Inc. filed its Q2 FY2024 10-Q report, detailing financial positions and subsequent events.</b>

AI Summary

Adtalem Global Education Inc. (CVSA) filed a Quarterly Report (10-Q) with the SEC on January 30, 2024. Adtalem Global Education Inc. filed its 10-Q report for the period ending December 31, 2023. The filing covers the second quarter of fiscal year 2024. The company's fiscal year ends on June 30. The filing includes data related to common stock, treasury stock, retained earnings, additional paid-in capital, and accumulated other comprehensive income. Subsequent events include authorization on January 19, 2024.

Why It Matters

For investors and stakeholders tracking Adtalem Global Education Inc., this filing contains several important signals. This 10-Q filing provides a detailed look at Adtalem's financial health and performance for the second quarter of its fiscal year 2024, allowing investors to assess recent operational results and balance sheet changes. The inclusion of subsequent events, such as the January 19, 2024 authorization, offers insight into recent corporate actions that may impact future performance and strategy.

Risk Assessment

Risk Level: — Adtalem Global Education Inc. shows moderate risk based on this filing. The filing is a standard 10-Q report, providing routine financial disclosures without immediate indicators of significant new risks or material adverse changes.

Analyst Insight

Monitor future 10-Q filings for trends in revenue, net income, and EPS to assess the company's ongoing financial performance and strategic execution.

Key Numbers

• 2023-12-31 — Period End Date (Conformed period of report)
• 2024-01-30 — Filing Date (Filed as of date)
• 2024-01-19 — Subsequent Event Date (Authorization date)

Key Players & Entities

• Adtalem Global Education Inc. (company) — Filer name
• 2023-12-31 (date) — Conformed period of report
• 2024-01-30 (date) — Filed as of date
• 06-30 (date) — Fiscal year end
• 2024-01-19 (date) — Subsequent event date

Forward-Looking Statements

• Adtalem Global Education Inc. will continue to execute share repurchases under the newly authorized $150.0 million program. (Adtalem Global Education Inc.) — high confidence, target: 2024-06-30
• The share repurchases will positively impact Adtalem's earnings per share in upcoming quarters. (Adtalem Global Education Inc.) — medium confidence, target: 2024-09-30

FAQ

Industry Context

Adtalem Global Education operates within the educational services sector, providing a range of academic programs and degrees.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial disclosures.

What Investors Should Do

1. Review the full 10-Q filing for detailed financial statements and management's discussion and analysis.
2. Compare the financial data in this report with previous filings to identify performance trends.
3. Analyze the impact of any disclosed subsequent events on the company's future outlook.

Key Dates

• 2023-12-31: Period End — End of the reporting period for the 10-Q filing.
• 2024-01-30: Filing Date — Date the 10-Q report was officially filed with the SEC.
• 2024-01-19: Subsequent Event Authorization — Date of a significant subsequent event mentioned in the filing.

Year-Over-Year Comparison

This filing is the 10-Q for the second quarter of fiscal year 2024, following previous filings such as 10-K and prior 10-Q reports.

Key Financial Figures

• $0.01 — ange on which registered Common stock, $0.01 par value per share ATGE New York S

Filing Documents

• atge-20231231x10q.htm (10-Q) — 4068KB
• atge-20231231xex10da.htm (EX-10.A) — 102KB
• atge-20231231xex31d1.htm (EX-31.1) — 10KB
• atge-20231231xex31d2.htm (EX-31.2) — 10KB
• atge-20231231xex32.htm (EX-32) — 8KB
• 0001558370-24-000642.txt (&nbsp;) — 16905KB
• atge-20231231.xsd (EX-101.SCH) — 75KB
• atge-20231231_cal.xml (EX-101.CAL) — 81KB
• atge-20231231_def.xml (EX-101.DEF) — 352KB
• atge-20231231_lab.xml (EX-101.LAB) — 678KB
• atge-20231231_pre.xml (EX-101.PRE) — 572KB
• atge-20231231x10q_htm.xml (XML) — 4023KB

Financial Information

Part I. Financial Information Item 1.

Financial Statements

Financial Statements 1 Consolidated Balance Sheets 1 Consolidated Statements of Income 2 Consolidated Statements of Cash Flows 3 Consolidated Statements of Shareholders' Equity 4

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 33 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 51 Item 4.

Controls and Procedures

Controls and Procedures 52

Other Information

Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 52 Item 1A.

Risk Factors

Risk Factors 52 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 53 Item 3. Defaults Upon Senior Securities 53 Item 4. Mine Safety Disclosures 53 Item 5. Other Information 53 Item 6. Exhibits 54 Signature 55 Table of Contents

Financial Information

Part I. Financial Information

Financial Statements

Item 1. Financial Statements Adtalem Global Education Inc. Consolidated Balance Sheets (unaudited) (in thousands, except par value) December 31, June 30, 2023 2023 Assets: Current assets: Cash and cash equivalents $ 182,894 $ 273,689 Restricted cash 3,183 1,386 Accounts receivable, net 133,666 102,749 Prepaid expenses and other current assets 58,356 100,715 Total current assets 378,099 478,539 Noncurrent assets: Property and equipment, net 260,484 258,522 Operating lease assets 176,863 174,677 Deferred income taxes 58,212 56,694 Intangible assets, net 792,328 812,338 Goodwill 961,262 961,262 Other assets, net 65,852 68,509 Assets held for sale 7,825 — Total noncurrent assets 2,322,826 2,332,002 Total assets $ 2,700,925 $ 2,810,541 Liabilities and shareholders' equity: Current liabilities: Accounts payable $ 88,093 $ 81,812 Accrued payroll and benefits 45,928 52,041 Accrued liabilities 97,675 105,806 Deferred revenue 135,281 153,871 Current operating lease liabilities 31,596 37,673 Total current liabilities 398,573 431,203 Noncurrent liabilities: Long-term debt 696,373 695,077 Long-term operating lease liabilities 168,603 163,441 Deferred income taxes 27,243 26,068 Other liabilities 40,734 37,416 Total noncurrent liabilities 932,953 922,002 Total liabilities 1,331,526 1,353,205 Commitments and contingencies Shareholders' equity: Common stock, $ 0.01 par value per share, 200,000 shares authorized; 39,526 and 42,310 shares outstanding as of December 31, 2023 and June 30, 2023, respectively 831 822 Additional paid-in capital 597,587 568,761 Retained earnings 2,454,269 2,403,750 Accumulated other comprehensive loss ( 2,227 ) ( 2,227 ) Treasury stock, at cost, 43,566 and 39,922 shares as of December 31, 2023 and June 30, 2023, respectively ( 1,681,061 ) ( 1,513,770 ) Total shareholders' equi

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (unaudited) Table of Contents Note Page 1 Nature of Operations 6 2 Summary of Significant Accounting Policies 6 3 Discontinued Operations 9 4 Revenue 10 5 Restructuring Charges 12 6 Other Income (Expense), Net 13 7 Income Taxes 13 8 Earnings per Share 14 9 Accounts Receivable and Credit Losses 14 10 Property and Equipment, Net 17 11 Leases 17 12 Goodwill and Intangible Assets 19 13 Debt 21 14 Share Repurchases 25 15 Stock-Based Compensation 26 16 Fair Value Measurements 28 17 Commitments and Contingencies 29 18 Segment Information 31 5 Table of Contents 1. Nature of Operations In this Quarterly Report on Form 10-Q, Adtalem Global Education Inc., together with its subsidiaries, is collectively referred to as "Adtalem," "we," "our," "us," or similar references. Adtalem is a national leader in post-secondary education and a leading provider of professional talent to the healthcare industry. Our schools consist of Chamberlain University ("Chamberlain"), Walden University ("Walden"), American University of the Caribbean School of Medicine ("AUC"), Ross University School of Medicine ("RUSM"), and Ross University School of Veterinary Medicine ("RUSVM"). AUC, RUSM, and RUSVM are collectively referred to as the "medical and veterinary schools." See Note 18 "Segment Information" for information on our reportable segments. 2. Summary of Significant Accounting Policies Basis of Presentation Our significant accounting policies is described in Note 2 "Summary of Significant Accounting Policies" of our Annual Report on Form 10-K for the fiscal year ended June 30, 2023 ("2023 Form 10-K"). We have prepared the accompanying unaudited consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial statements and pursuant to the rules and regulations of the Securities and Exchange Commissi