Adtalem Global Education Inc
For the period ended Sep 30, 2024. Filed Oct 29, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 29, 2024
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Segment Information
- Segment Information
We present three reportable segments as follows:
Chamberlain – This segment includes the operations of Chamberlain, which offers degree and certificate programs in the nursing and health professions postsecondary education industry.
Walden – This segment includes the operations of Walden, which offers degree and certificate programs, including those in nursing, education, counseling, business, psychology, public health, social work and human services, public administration and public policy, and criminal justice.
Medical and Veterinary – This segment includes the operations of AUC, RUSM, and RUSVM, collectively referred to as the “medical and veterinary schools,” which offers degree and certificate programs in the medical and veterinary postsecondary education industry.
These segments are consistent with the method by which the Chief Operating Decision Maker (Adtalem’s President and Chief Executive Officer) evaluates performance and allocates resources. Performance evaluations are based on each segment’s adjusted operating income. Adjusted operating income excludes special items, which consists of restructuring expense, business integration expense, amortization of acquired intangible assets, litigation reserve, and debt modification
costs. Adtalem’s management excludes these items from its review of the results of the operating segments for purposes of measuring segment profitability and allocating resources. “Home Office” includes activities not allocated to a reportable segment and is included to reconcile segment results to the Consolidated Financial Statements. Total assets by segment are not presented as our CODM does not review or allocate resources based on segment assets. The accounting policies of the segments are the same as those described in Note 2 “Summary of Significant Accounting Policies.”
Summary financial information by reportable segment is as follows (in thousands):
| | | | | | | |
|---|---|---|---|---|---|---|
| · · Three Months Ended | ||||||
| · · September 30, | ||||||
| · · 2024 · · 2023 | ||||||
| Revenue: · · · · | ||||||
| Chamberlain | | $167,930 | | $142,596 | ||
| Walden | | | 161,513 | | | 141,608 |
| Medical and Veterinary | | | 87,957 | | | 84,641 |
| Total consolidated revenue | | $417,400 | | $368,845 | ||
| Adjusted operating income: | | | | | | |
| Chamberlain | | $27,832 | | $24,324 | ||
| Walden | | | 42,642 | | | 31,115 |
| Medical and Veterinary | | | 14,730 | | | 14,477 |
| Home Office | | (9,355) | | (6,607) | ||
| Total consolidated adjusted operating income | | | 75,849 | | | 63,309 |
| Reconciliation to Consolidated Financial Statements: | | | | | | |
| Restructuring expense | | (2,094) | | (676) | ||
| Business integration expense | | | — | | (5,262) | |
| Amortization of acquired intangible assets | | | (2,805) | | (10,677) | |
| Litigation reserve | | | — | | (18,500) | |
| Debt modification costs | | | (712) | | — | |
| Total consolidated operating income | | | 70,238 | | | 28,194 |
| Interest expense | | (14,482) | | (15,657) | ||
| Other income, net | | 2,646 | | 2,214 | ||
| Total consolidated income from continuing operations before income taxes | | $58,402 | | $14,751 | ||
| Depreciation: | | | | | | |
| Chamberlain | | $5,368 | | $4,116 | ||
| Walden | | | 1,682 | | | 1,974 |
| Medical and Veterinary | | | 2,569 | | | 2,892 |
| Home Office | | 184 | | 356 | ||
| Total consolidated depreciation | | $9,803 | | $9,338 | ||
| Amortization of acquired intangible assets: | | | | | | |
| Walden | | $2,805 | | $10,677 | ||
| Total consolidated amortization of acquired intangible assets | | $2,805 | | $10,677 | ||
Adtalem conducts its educational operations in the U.S., Barbados, St. Kitts, and St. Maarten. Revenue by geographic area is as follows (in thousands):
| · · · · · · | ||||
|---|---|---|---|---|
| · · Three Months Ended | ||||
| · · September 30, | ||||
| | | 2024 | | 2023 |
| Revenue by geographic area: · · · · · · | ||||
| Domestic operations | | $329,443 | | $284,204 |
| Barbados, St. Kitts, and St. Maarten | | 87,957 | | 84,641 |
| Total consolidated revenue | | $417,400 | | $368,845 |
No one customer accounted for more than 10% of Adtalem’s consolidated revenue for all periods presented.
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