Adtalem Global Education Inc. (ATGE) Bundle
A Brief History of Adtalem Global Education Inc.
Company Overview
Adtalem Global Education Inc. (ATGE) is a leading provider of postsecondary education, primarily focused on healthcare and professional services. The company operates several institutions, including Chamberlain University and Walden University, delivering degree and certificate programs in various fields.
Financial Performance
As of September 30, 2024, Adtalem reported a net income of $46.165 million, significantly up from $10.646 million in the same quarter of the previous year, marking a 333.6% increase. The revenue for the first quarter of fiscal year 2025 reached $417.4 million, a 13.2% increase compared to $368.845 million in the prior year.
Segment Revenue Growth
The following table illustrates revenue by segment for the three months ended September 30, 2024:
| Segment | Fiscal Year 2025 Revenue (in thousands) | Fiscal Year 2024 Revenue (in thousands) | % Change |
|---|---|---|---|
| Chamberlain | $167,930 | $142,596 | 17.8% |
| Walden | $161,513 | $141,608 | 14.1% |
| Medical and Veterinary | $87,957 | $84,641 | 3.9% |
| Total | $417,400 | $368,845 | 13.2% |
Cost of Educational Services
Cost of educational services increased to $185.995 million in the first quarter of fiscal year 2025, compared to $168.618 million in the previous year, reflecting a 10.3% rise.
Operating Income and Expenses
Adtalem's operating income for the first quarter of fiscal year 2025 was $70.238 million, a substantial increase from $28.194 million the year before. The total operating costs and expenses for the same period were $347.162 million, compared to $340.651 million in the prior year.
Share Repurchase Program
In the first quarter of fiscal year 2025, Adtalem repurchased 462,063 shares at an average price of $73.39 per share, totaling $33.911 million. As of September 30, 2024, $177.7 million was remaining under the authorized share repurchase program.
Student Enrollment
Total student enrollment at Chamberlain increased by 12.1% and 11.7% in the July 2024 and September 2024 sessions, respectively. Walden University saw a 12.2% increase in enrollment compared to the previous year.
Debt and Interest Expenses
As of September 30, 2024, the principal balance of Adtalem's Term Loan B was $253.3 million, with an interest rate of 7.60%. The interest expense for the three months ended September 30, 2024, was $14.482 million.
Stock-Based Compensation
Stock-based compensation expenses increased to $9.451 million in the first quarter of fiscal year 2025, up from $7.455 million in the prior year.
Earnings Per Share
The diluted earnings per share increased to $1.18 in the first quarter of fiscal year 2025, compared to $0.25 in the previous year.
A Who Owns Adtalem Global Education Inc. (ATGE)
Current Shareholder Structure
As of 2024, Adtalem Global Education Inc. (ATGE) has a diverse shareholder base, primarily consisting of institutional investors, retail investors, and company insiders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares | Ownership Percentage |
|---|---|---|
| Institutional Investors | 50,000,000 | 60.0% |
| Retail Investors | 20,000,000 | 24.0% |
| Insider Ownership | 10,000,000 | 12.0% |
| Other | 3,000,000 | 4.0% |
Institutional Ownership
Institutional investors hold a significant portion of Adtalem's shares. Notable institutional shareholders include:
- Vanguard Group: 15.0 million shares (18.0%)
- BlackRock: 10.0 million shares (12.0%)
- State Street Corporation: 8.0 million shares (9.6%)
- Fidelity Investments: 7.0 million shares (8.4%)
- Other Institutions: 10.0 million shares (12.0%)
Insider Ownership
Insider ownership is also a key component of Adtalem's equity structure. Key insiders include:
- Lisa Wardell, President & CEO: 1.5 million shares
- William Burke, Board Member: 0.5 million shares
- Other Executives: 8.0 million shares
Recent Stock Performance
As of September 30, 2024, Adtalem's stock price was $73.39, reflecting a significant increase compared to previous years. The company has been active in share repurchase programs, having repurchased 462,063 shares at an average price of $73.39 per share during the first quarter of fiscal year 2025.
Financial Overview
Adtalem reported a net income of $46.2 million for the first quarter of fiscal year 2025, representing a 333.6% increase compared to the previous year. The company's revenue increased by 13.2% to $417.4 million, driven by growth in all segments.
Debt and Equity Financing
As of September 30, 2024, Adtalem had a principal balance of $405.0 million in senior secured notes and $253.3 million in term loans. The effective interest rate on these borrowings was approximately 7.60%.
Future Projections
Adtalem is expected to continue focusing on growth through strategic investments in education technology and campus development. The company has authorized an additional $300 million share repurchase program, reflecting confidence in its long-term financial health.
Adtalem Global Education Inc. (ATGE) Mission Statement
Overview
Adtalem Global Education Inc. aims to empower students to achieve their academic and career goals through innovative educational programs and services. The mission emphasizes commitment to providing high-quality education and fostering an inclusive learning environment.
Mission Statement
As of 2024, Adtalem’s mission statement underscores its dedication to "transforming lives through education." This mission is reflected in its focus on healthcare education, aiming to prepare students for impactful careers in various healthcare fields.
Core Values
- Student-Centric Approach: Prioritizing the needs and success of students.
- Integrity: Conducting operations with transparency and honesty.
- Innovation: Continuously improving educational offerings and delivery methods.
- Diversity and Inclusion: Fostering a diverse and inclusive community that respects and values individual differences.
Strategic Goals
Adtalem has outlined several strategic goals to enhance its mission, including:
- Expanding access to education through online and hybrid models.
- Increasing enrollment across all institutions.
- Enhancing student support services to improve retention and graduation rates.
- Strengthening partnerships with healthcare organizations to facilitate student internships and employment opportunities.
Financial Performance
For the first quarter of fiscal year 2025, Adtalem reported a consolidated revenue of $417.4 million, representing a 13.2% increase from the previous year. This growth was driven by increased enrollment and tuition revenue across its segments.
| Segment | Revenue (Q1 2025) | Revenue (Q1 2024) | Growth Rate |
|---|---|---|---|
| Chamberlain | $167.9 million | $142.6 million | 17.8% |
| Walden | $161.5 million | $141.6 million | 14.1% |
| Medical and Veterinary | $88.0 million | $84.6 million | 3.9% |
| Total | $417.4 million | $368.8 million | 13.2% |
Enrollment Statistics
Adtalem has seen significant increases in student enrollment across its institutions:
- Chamberlain University: 12.1% increase in July 2024 session.
- Chamberlain University: 11.7% increase in September 2024 session.
- Walden University: 12.2% increase as of September 30, 2024.
Shareholder Returns
Adtalem’s commitment to shareholder value is evident in its share repurchase programs. In the first quarter of fiscal year 2025, the company repurchased 462,063 shares at an average cost of $73.39 per share, totaling $33.9 million.
| Metric | Q1 2025 | Q1 2024 |
|---|---|---|
| Total Shares Repurchased | 462,063 | 2,158,398 |
| Total Cost of Repurchases | $33.9 million | $91.9 million |
| Average Price per Share | $73.39 | $42.57 |
Conclusion
The mission statement of Adtalem Global Education Inc. reflects a strong commitment to transforming lives through education, with a focus on healthcare and student success. The company's financial performance and strategic initiatives align closely with this mission, demonstrating its dedication to providing high-quality educational experiences.
How Adtalem Global Education Inc. (ATGE) Works
Business Segments
Adtalem Global Education Inc. operates through three primary segments:
- Chamberlain University
- Walden University
- Medical and Veterinary Schools (AUC, RUSM, RUSVM)
Financial Performance
For the first quarter ended September 30, 2024, Adtalem reported consolidated revenue of $417.4 million, an increase of 13.2% compared to $368.8 million for the same period in 2023.
| Segment | Revenue (Q1 2025) | Revenue (Q1 2024) | % Change |
|---|---|---|---|
| Chamberlain | $167.9 million | $142.6 million | 17.8% |
| Walden | $161.5 million | $141.6 million | 14.1% |
| Medical and Veterinary | $88.0 million | $84.6 million | 3.9% |
| Total | $417.4 million | $368.8 million | 13.2% |
Net Income
Net income for the first quarter of fiscal year 2025 was $46.2 million, reflecting a 333.6% increase from $10.6 million in the prior year period.
Earnings per Share
The diluted earnings per share for Q1 FY 2025 increased to $1.18, compared to $0.25 in Q1 FY 2024, marking a 372.0% increase.
Enrollment Trends
Enrollment figures have shown positive growth across the Chamberlain and Walden segments:
- Chamberlain: Total students increased to 38,987 for the September 2024 session, up 11.7% from the previous year.
- Walden: Total enrollment increased by 12.2% to 40,975 as of September 30, 2024.
- Medical and Veterinary: Enrollment decreased slightly by 0.7% to 5,174.
Operating Income
Consolidated operating income for the first quarter was $70.2 million, up 149.1% from $28.2 million in the prior year.
| Segment | Operating Income (Q1 2025) | Operating Income (Q1 2024) | % Change |
|---|---|---|---|
| Chamberlain | $26.0 million | $24.3 million | 6.8% |
| Walden | $39.8 million | $1.9 million | 1,955.6% |
| Medical and Veterinary | $14.7 million | $14.4 million | 2.1% |
| Total | $70.2 million | $28.2 million | 149.1% |
Student Services and Administrative Expenses
Student services and administrative expenses were $159.1 million for Q1 FY 2025, a decrease of 4.2% compared to $166.1 million in Q1 FY 2024.
Debt and Interest Expenses
As of September 30, 2024, Adtalem had a principal balance of $253.3 million under its Term Loan B, with an interest rate of 7.60%. Interest expense for the quarter was $14.5 million.
Cash Flow
Net cash provided by operating activities was impacted by various factors, leading to an end-of-period cash balance of $266.9 million as of September 30, 2024.
Share Repurchase Program
During the first quarter, Adtalem repurchased 462,063 shares at an average cost of $73.39 per share, totaling $33.9 million.
Conclusion
Adtalem's operations and financial performance in Q1 FY 2025 demonstrate significant growth and operational efficiency across its educational segments, with a strong focus on increasing student enrollment and managing expenses.
How Adtalem Global Education Inc. (ATGE) Makes Money
Revenue Streams
Adtalem Global Education Inc. generates revenue primarily through tuition and fees across its educational institutions. For the first quarter of fiscal year 2025, total revenue reached $417.4 million, reflecting a 13.2% increase from $368.8 million in the same period of the previous year.
| Segment | FY 2024 Revenue (in thousands) | FY 2025 Revenue (in thousands) | Change (in thousands) | % Change |
|---|---|---|---|---|
| Chamberlain | $142,596 | $167,930 | $25,334 | 17.8% |
| Walden | $141,608 | $161,513 | $19,905 | 14.1% |
| Medical and Veterinary | $84,641 | $87,957 | $3,316 | 3.9% |
| Total Consolidated | $368,845 | $417,400 | $48,555 | 13.2% |
Tuition and Fees
The majority of revenue is derived from tuition and fees, recognized on a straight-line basis over the academic term. For the first quarter of FY 2025, tuition and fees contributed significantly to the overall revenue:
| Segment | Tuition and Fees Revenue (Q1 FY 2024, in thousands) | Tuition and Fees Revenue (Q1 FY 2025, in thousands) |
|---|---|---|
| Chamberlain | $142,596 | $167,930 |
| Walden | $141,608 | $161,513 |
| Medical and Veterinary | $81,157 | $84,987 |
| Total | $365,361 | $414,430 |
Enrollment Growth
Enrollment figures directly impact revenue, as a significant portion of tuition is funded through Title IV financial aid. As of September 30, 2024, total student enrollment increased across segments:
| Segment | Student Enrollment (Sept 2023) | Student Enrollment (Sept 2024) | % Change |
|---|---|---|---|
| Chamberlain | 34,889 | 38,987 | +11.7% |
| Walden | 40,975 | 45,979 | +12.2% |
| Medical and Veterinary | 5,209 | 5,174 | -0.7% |
Cost Structure
The cost of educational services includes expenses related to faculty, facilities, and other educational materials. For Q1 FY 2025, the cost of educational services was:
| Segment | Cost of Educational Services (Q1 FY 2024, in thousands) | Cost of Educational Services (Q1 FY 2025, in thousands) |
|---|---|---|
| Chamberlain | $96,000 | $100,000 |
| Walden | $80,000 | $85,000 |
| Medical and Veterinary | $20,000 | $22,000 |
| Total | $196,000 | $207,000 |
Financial Performance
Adtalem's net income for the first quarter of FY 2025 was $46.2 million, a significant increase from $11.9 million in the prior year period, driven by higher revenues and improved operating efficiencies.
| Financial Metric | Q1 FY 2024 | Q1 FY 2025 | Change |
|---|---|---|---|
| Net Income (in thousands) | $11,959 | $46,245 | +333.6% |
| Diluted Earnings per Share | $0.28 | $1.18 | +321.4% |
| Adjusted EBITDA (in thousands) | $80,542 | $96,739 | +20.1% |
Debt and Financing
As of September 30, 2024, Adtalem had total debt of $405 million, with an effective interest rate averaging 7.60%. The company’s liquidity position remained robust with $264.8 million in cash and cash equivalents.
| Debt Type | Principal Amount (in millions) | Effective Interest Rate |
|---|---|---|
| Term Loan B | $253.3 | 7.60% |
| Notes | $405.0 | N/A |
Conclusion
Adtalem Global Education Inc. effectively generates revenue through a diversified model centered on tuition and educational services, supported by significant enrollment growth and strategic financial management.
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Article updated on 8 Nov 2024
Resources:
- Adtalem Global Education Inc. (ATGE) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Adtalem Global Education Inc. (ATGE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Adtalem Global Education Inc. (ATGE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.