Adtalem Global Education Q1 2024 Update: Share Repurchases & Financials

TL;DR

Adtalem's Q1 2024 10-Q shows share repurchase activity and key balance sheet figures.

AI Summary

Adtalem Global Education Inc. filed its 10-Q for the period ending September 30, 2024. The company reported on its share repurchase programs, with activity noted between July 1, 2024, and September 30, 2024, and also for the same period in 2023. Key financial statement items like common stock, treasury stock, retained earnings, and additional paid-in capital as of September 30, 2024, were also detailed.

Why It Matters

This filing provides insight into Adtalem's capital allocation strategies through share repurchases and its financial health as of the end of the first fiscal quarter.

Risk Assessment

Risk Level: low — This is a routine quarterly filing detailing financial performance and capital allocation, not indicating immediate or significant new risks.

Key Numbers

• 6300000 — Open Market Share Repurchase Programs (Activity during Q1 2024)
• 4000000 — Open Market Share Repurchase Programs (Activity during Q1 2023)

Key Players & Entities

• Adtalem Global Education Inc. (company) — Filer of the 10-Q
• September 30, 2024 (date) — End of reporting period
• July 1, 2024 (date) — Start of reporting period for share repurchases
• 0000730464 (company) — Central Index Key for Adtalem Global Education Inc.

FAQ

Key Financial Figures

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

Filing Documents

• atge-20240930x10q.htm (10-Q) — 2541KB
• atge-20240930xex31d1.htm (EX-31.1) — 10KB
• atge-20240930xex31d2.htm (EX-31.2) — 10KB
• atge-20240930xex32d1.htm (EX-32.1) — 8KB
• 0001558370-24-013841.txt ( ) — 11636KB
• atge-20240930.xsd (EX-101.SCH) — 66KB
• atge-20240930_cal.xml (EX-101.CAL) — 82KB
• atge-20240930_def.xml (EX-101.DEF) — 289KB
• atge-20240930_lab.xml (EX-101.LAB) — 636KB
• atge-20240930_pre.xml (EX-101.PRE) — 490KB
• atge-20240930x10q_htm.xml (XML) — 2372KB

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 27 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 41 Item 4.

Controls and Procedures

Controls and Procedures 42

Other Information

Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 42 Item 1A.

Risk Factors

Risk Factors 42 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 42 Item 5. Other Information 43 Item 6. Exhibits 43 Signature 44 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) September 30, June 30, 2024 2024 Assets: Current assets: Cash and cash equivalents $ 264,798 $ 219,306 Restricted cash 2,074 1,896 Accounts and financing receivables, net 171,509 126,833 Prepaid expenses and other current assets 78,533 70,050 Total current assets 516,914 418,085 Noncurrent assets: Property and equipment, net 244,503 248,524 Operating lease assets 171,921 176,755 Deferred income taxes 33,454 49,088 Intangible assets, net 773,889 776,694 Goodwill 961,262 961,262 Other assets, net 107,939 103,184 Assets held for sale 7,825 7,825 Total noncurrent assets 2,300,793 2,323,332 Total assets $ 2,817,707 $ 2,741,417 Liabilities and shareholders' equity: Current liabilities: Accounts payable $ 91,421 $ 102,626 Accrued payroll and benefits 49,839 71,373 Accrued liabilities 87,212 96,957 Deferred revenue 290,571 185,272 Current operating lease liabilities 32,266 31,429 Total current liabilities 551,309 487,657 Noncurrent liabilities: Long-term debt 649,318 648,712 Long-term operating lease liabilities 161,757 167,712 Deferred income taxes 30,348 29,526 Other liabilities 35,023 38,675 Total noncurrent liabilities 876,446 884,625 Total liabilities 1,427,755 1,372,282 Commitments and contingencies Shareholders' equity: Common stock, $ 0.01 par value per share, 200,000 shares authorized; 37,716 and 37,681 shares outstanding as of September 30, 2024 and June 30, 2024, respectively 838 832 Additional paid-in capital 631,033 611,949 Retained earnings 2,586,674 2,540,509 Accumulated other comprehensive loss ( 2,227 ) ( 2,227 ) Treasury stock, at cost, 46,113 and 45,513 shares as of September 30, 2024 and June 30, 2024, respectively ( 1,826,366 ) ( 1,781,928 )

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 Expense 10 6 Other Income, Net 10 7 Income Taxes 11 8 Earnings per Share 11 9 Accounts and Financing Receivables 11 10 Property and Equipment, Net 14 11 Leases 14 12 Goodwill and Intangible Assets 16 13 Debt 18 14 Share Repurchases 21 15 Stock-Based Compensation 21 16 Fair Value Measurements 23 17 Commitments and Contingencies 24 18 Segment Information 25 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 reports on a fiscal year period ending on June 30. Therefore, this Quarterly Report for the quarterly period ended September 30, 2024 is for our first quarter of fiscal year 2025. 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." "Home Office" includes activities not allocated to a reportable segment. 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, 2024. We have prepared the accompanying unaudited consolidated financial statements in accordance with U.S generally ac