Adtalem Global Education Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Adtalem Global Education Inc. filed its quarterly report (10-Q) for the period ending March 31, 2024, detailing its financial performance and operations.</b>

AI Summary

Adtalem Global Education Inc. (CVSA) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. Adtalem Global Education Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the period from July 1, 2023, to March 31, 2024. The company's fiscal year ends on June 30. The filing was made on May 2, 2024. Adtalem Global Education Inc. is incorporated in Delaware.

Why It Matters

For investors and stakeholders tracking Adtalem Global Education Inc., this filing contains several important signals. This 10-Q filing provides investors with an updated view of Adtalem's financial health and operational progress during the third quarter of its fiscal year. Understanding the details within this report is crucial for assessing the company's performance against its strategic goals and market conditions.

Risk Assessment

Risk Level: — Adtalem Global Education Inc. shows moderate risk based on this filing. The company operates in the educational services sector, which can be subject to regulatory changes and shifts in student enrollment, impacting financial performance.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis in the 10-Q to understand revenue trends, profitability, and any significant operational changes.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed period of report)
• 2024-05-02 — Filing Date (Filed as of date)
• 0630 — Fiscal Year End (Fiscal year end)

Key Players & Entities

• Adtalem Global Education Inc. (company) — Filer name
• 2024-03-31 (date) — Conformed period of report
• 2024-05-02 (date) — Filed as of date
• DE (jurisdiction) — State of incorporation
• 8200 (sic_code) — Standard Industrial Classification
• 001-13988 (sec_file_number) — SEC file number

FAQ

Industry Context

Adtalem Global Education Inc. operates within the educational services industry, which is characterized by evolving student needs, regulatory oversight, and competition.

Regulatory Implications

The educational services sector is subject to various regulations concerning accreditation, student aid, and program quality, which can impact operational and financial aspects.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and EPS trends.
2. Examine the Management's Discussion and Analysis for insights into operational performance and future outlook.
3. Review any disclosed risk factors and their potential impact on the company.

Key Dates

• 2024-03-31: Quarterly Period End — Financial results for the period ending March 31, 2024.
• 2024-05-02: Filing Date — Official submission date of the 10-Q report.

Year-Over-Year Comparison

This filing represents the quarterly update for the period ending March 31, 2024, providing the latest financial and operational information since the previous filing.

Key Financial Figures

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

Filing Documents

• atge-20240331x10q.htm (10-Q) — 3849KB
• atge-20240331xex4da.htm (EX-4.A) — 1801KB
• atge-20240331xex31d1.htm (EX-31.1) — 10KB
• atge-20240331xex31d2.htm (EX-31.2) — 10KB
• atge-20240331xex32.htm (EX-32) — 8KB
• 0001558370-24-006552.txt (&nbsp;) — 16570KB
• atge-20240331.xsd (EX-101.SCH) — 72KB
• atge-20240331_cal.xml (EX-101.CAL) — 83KB
• atge-20240331_def.xml (EX-101.DEF) — 310KB
• atge-20240331_lab.xml (EX-101.LAB) — 663KB
• atge-20240331_pre.xml (EX-101.PRE) — 519KB
• atge-20240331x10q_htm.xml (XML) — 3117KB

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 30 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 51

Other Information

Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 51 Item 1A.

Risk Factors

Risk Factors 51 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 52 Item 3. Defaults Upon Senior Securities 52 Item 4. Mine Safety Disclosures 52 Item 5. Other Information 52 Item 6. Exhibits 53 Signature 54 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) March 31, June 30, 2024 2023 Assets: Current assets: Cash and cash equivalents $ 179,762 $ 273,689 Restricted cash 7,562 1,386 Accounts and financing receivables, net 140,909 102,749 Prepaid expenses and other current assets 59,401 100,715 Total current assets 387,634 478,539 Noncurrent assets: Property and equipment, net 272,792 258,522 Operating lease assets 169,498 174,677 Deferred income taxes 64,213 56,694 Intangible assets, net 784,042 812,338 Goodwill 961,262 961,262 Other assets, net 67,768 68,509 Assets held for sale 7,825 — Total noncurrent assets 2,327,400 2,332,002 Total assets $ 2,715,034 $ 2,810,541 Liabilities and shareholders' equity: Current liabilities: Accounts payable $ 92,198 $ 81,812 Accrued payroll and benefits 67,647 52,041 Accrued liabilities 114,224 105,806 Deferred revenue 202,566 153,871 Current operating lease liabilities 32,475 37,673 Total current liabilities 509,110 431,203 Noncurrent liabilities: Long-term debt 648,106 695,077 Long-term operating lease liabilities 159,717 163,441 Deferred income taxes 28,937 26,068 Other liabilities 48,201 37,416 Total noncurrent liabilities 884,961 922,002 Total liabilities 1,394,071 1,353,205 Commitments and contingencies Shareholders' equity: Common stock, $ 0.01 par value per share, 200,000 shares authorized; 37,765 and 42,310 shares outstanding as of March 31, 2024 and June 30, 2023, respectively 831 822 Additional paid-in capital 603,671 568,761 Retained earnings 2,491,090 2,403,750 Accumulated other comprehensive loss ( 2,227 ) ( 2,227 ) Treasury stock, at cost, 45,335 and 39,922 shares as of March 31, 2024 and June 30, 2023, respectively ( 1,772,402 ) ( 1,513,770 ) Total shareholder

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 7 4 Revenue 8 5 Restructuring Charges 10 6 Other Income, Net 11 7 Income Taxes 11 8 Earnings per Share 12 9 Accounts and Financing Receivables 12 10 Property and Equipment, Net 15 11 Leases 15 12 Goodwill and Intangible Assets 17 13 Debt 19 14 Share Repurchases 23 15 Stock-Based Compensation 24 16 Fair Value Measurements 26 17 Commitments and Contingencies 27 18 Segment Information 28 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 the leading healthcare educator in the U.S. 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 are 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 Commission ("SEC"). Accordingly, they do not include all of the information and footnotes require