Adtalem Global Education Announces Second Quarter Fiscal 2019 Results
Business Wire 7-Feb-2019 4:05 PM
New Student Enrollment Increased 4.9% in January 2019 Session
Adtalem Global Education Inc. (NYSE:ATGE), a leading global education
provider, today reported academic, operating and financial results for
its second quarter fiscal 2019 ended December 31, 2018.
"In the second quarter, we delivered growing enrollments in our medical
and healthcare segment and strong results in our professional education
segment driven by the refreshed product differentiation in the Becker
business and continued growth in the Association of Certified Anti-Money
Laundering Specialists (ACAMS). We also achieved several major
milestones that further focused our portfolio, including the successful
completion of the DeVry University and Carrington College transfers of
ownership, as well as the permanent relocation of Ross University School
of Medicine to Barbados," said Lisa Wardell, president and CEO of
Adtalem. "As we enter the second half of the fiscal year, we will
continue to focus on delivering our value proposition to students and
employer partners to help bridge the gap where talent supply and demand
imbalances exist in the workforce."
Financial Highlights
Selected financial data for the three months ended December 31, 2018:
-
Revenue of $316.6 million increased 2.7 percent compared to the prior
year
-
Operating income from continuing operations was $70.3 million compared
to $59.9 million in the prior year; operating income from continuing
operations excluding special items was $58.4 million compared to $61.3
million in the prior year
-
Net income was $17.3 million compared to a net loss of $81.2 million
in the prior year; net income from continuing operations excluding
special items was $44.5 million compared to $50.3 million in the prior
year
-
Diluted earnings per share was $0.29 compared to a loss per share of
$1.33 (basic) in the prior year; diluted earnings per share from
continuing operations excluding special items was $0.74 compared to
$0.81 in the prior year
-
Approximately 1.1 million shares of common stock were repurchased
during the second quarter of fiscal 2019 at an average purchase price
of $50.18 for a total of $56.8 million
Selected financial data for the six months ended December 31, 2018:
-
Revenue of $600.8 million decreased 0.1 percent compared to the prior
year
-
Operating income from continuing operations was $67.8 million compared
to $89.8 million in the prior year; operating income from continuing
operations excluding special items was $95.4 million compared to $92.4
million in the prior year
-
Net income was $7.8 million compared to a net loss of $68.4 million in
the prior year; net income from continuing operations excluding
special items was $71.8 million compared to $76.5 million in the prior
year
-
Diluted earnings per share was $0.13 compared to a loss per share of
$1.10 (basic) in the prior year; diluted earnings per share from
continuing operations excluding special items was $1.18 compared to
$1.22 in the prior year
-
Approximately 2.4 million shares of common stock were repurchased
during the first six months of fiscal 2019 at an average purchase
price of $49.01 for a total of $115.9 million
Operating income from continuing operations excluding special items, net
income from continuing operations excluding special items and earnings
per share from continuing operations excluding special items are
non-GAAP financial measures. Reconciliations of these non-GAAP financial
measures are provided in the attached financial tables. Fiscal 2019
second quarter results contained special items including a pre-tax
insurance settlement gain of $15.6 million related to Hurricanes Irma
and Maria from September 2018, and total pre-tax restructuring charges
of $3.6 million, primarily related to the closing of the Ross University
School of Medicine campus in Dominica and real estate consolidations in
Adtalem's home office.
Adtalem completed the transfer of ownership of DeVry University and
Carrington College during the second quarter of fiscal 2019. Adtalem
recorded a pre-tax loss on disposal of discontinued operations of $32.7
million in the second quarter of fiscal 2019 related to these
divestitures.
Segment Highlights
Medical and Healthcare
Second quarter segment revenue increased 4.6 percent to $212.6 million
compared to the prior year.
Chamberlain revenue increased 6.2 percent in the second quarter compared
to the prior year. November 2018 new student enrollment decreased 6.7
percent (online only). Total student enrollment increased 3.7 percent
compared to the prior year. In the January 2019 session, new student
enrollment increased 6.4 percent and total student enrollment increased
3.3 percent compared to the prior year as we drove strong growth in our
campus Bachelor of Science of Nursing program.
Revenue in the quarter for the medical and veterinary schools increased
2.4 percent from the prior year to $90.4 million. New student enrollment
declined 8.5 percent and total student enrollment declined 6.6 percent
in the January 2019 semester compared to the same semester last year.
The decline in new students is due to the shift in starts of students in
the prior year from the September to January session due to Hurricanes
Irma and Maria. Excluding this impact, new student enrollments increased
6.6 percent.
Segment operating income in the second quarter was $60.6 million
compared to $55.0 million in the prior year. Excluding special items,
segment operating income in the second quarter was $47.5 million
compared to $55.0 million in the prior year.
Professional Education
Second quarter segment revenue increased 38.8 percent to $42.1 million
compared to the prior year.
Becker revenue increased 15.9% while ACAMS revenue increased 64.7%,
including the impact of the shift of the North American annual
conference to the second quarter of fiscal 2019 from the first quarter
of fiscal 2019.
Segment operating income was $9.6 million compared to $2.2 million in
the prior year.
Technology and Business
Second quarter segment revenue decreased 16.6 percent to $62.6 million
compared to the prior year. On a constant currency basis, revenue
decreased 2.4 percent compared to the prior year. The decreases were the
result of lower tuition pricing in response to student financial aid
program reductions and increased competition.
Segment operating income in the second quarter was $8.5 million compared
to $14.0 million in the prior year. Second quarter operating income on a
constant currency basis was $10.6 million.
Adtalem Outlook
Fiscal Third Quarter 2019
-
Revenue is expected to increase approximately 1 to 2 percent compared
to the prior year.
-
Third quarter operating costs excluding special items are expected to
increase 3 to 4 percent compared to the prior year. The third quarter
outlook assumes an exchange rate of 3.77 Brazilian Real to the U.S.
Dollar.
Fiscal Year 2019
-
Revenue is expected to increase approximately 3 to 4 percent compared
to the prior year.
-
Effective income tax rate is expected to be in the 16 to 17 percent
range.
-
Earnings per share from continuing operations excluding special items
are expected to grow in the 2 to 3 percent range compared to the prior
year.
-
The full year outlook assumes an exchange rate of 3.80 Brazilian Real
to the U.S. Dollar.
-
Full year capital spending is expected to be in the $65 to $70 million
range, including approximately $20 to $25 million for the relocation
of RUSM to Barbados. Adtalem's outlook excludes potential future
special items.
Conference Call and Webcast Information
Adtalem will hold a conference call to discuss its second quarter fiscal
2019 earnings on Thursday, February 7, at 4 p.m. CT (5 p.m. ET). The
conference call will be led by Lisa Wardell, president and chief
executive officer, and Patrick Unzicker, chief financial officer and
treasurer.
For those wishing to participate by telephone, dial 877-407-6184
(domestic) or 201-389-0877 (international) and ask for the Adtalem call
or use conference ID: 13686825. Adtalem will also broadcast the
conference call on the Adtalem website at https://78449.themediaframe.com/dataconf/productusers/age/mediaframe/28515/indexl.html.
Please access the website at least 15 minutes prior to the start of the
call to register, download and install any necessary audio software.
Adtalem will archive a telephone replay of the call until March 7, 2019.
To access the replay, dial 877-660-6853 (domestic) or 201-612-7415
(international), conference ID: 13686825. To access the webcast replay,
please visit Adtalem's website at http://investors.adtalem.com/CorporateProfile.
About Adtalem Global Education Inc.
The purpose of Adtalem Global Education Inc. is to empower students to
achieve their goals, find success, and make inspiring contributions to
our global community. Adtalem Global Education Inc. (NYSE: ATGE; member
S&P MidCap 400 Index) is a leading global education provider and the
parent organization of Adtalem Educacional do Brasil, American
University of the Caribbean School of Medicine, Association of Certified
Anti-Money Laundering Specialists, Becker Professional Education,
Chamberlain University, EduPristine, Ross University School of Medicine
and Ross University School of Veterinary Medicine. For more information,
please visit adtalem.com.
Forward-Looking Statement
Certain statements contained in this release concerning Adtalem Global
Education's expected future performance, including those statements
concerning expectations or plans, constitute "forward-looking
statements" within the meaning of the Safe Harbor Provision of the
Private Securities Litigation Reform Act of 1995. All statements other
than statements of historical fact are, or may be deemed to be,
forward-looking statements. These forward-looking statements generally
can be identified by phrases such as Adtalem Global Education or its
management "believes," "expects," "anticipates," "foresees,"
"forecasts," "estimates," "plans," "intends," "continues," "may,"
"will," "should," "could," or other words or phrases of similar import
which predict or indicate future events or trends or that are not
statements of historical matters. However, the absence of these words
does not mean that the statements are not forward-looking. These
forward-looking statements are based on certain assumptions and analyses
made by us in light of our experience and our perception of historical
trends, current conditions and expected future developments, as well as
other factors we believe are appropriate in the circumstances.
These forward-looking statements are subject to known and unknown risks,
uncertainties and assumptions that may cause actual results, levels of
activity, performance or achievements to be materially different from
any future results, levels of activity, performance or achievements
expressed or implied by such forward-looking statements. Factors that
might cause or contribute to a material difference include the risks
discussed in Item 1A, "Risk Factors," in our most recent Annual Report
on Form 10-K for the year ending June 30, 2018 filed with the Securities
and Exchange Commission (SEC) on August 24, 2018 and our other filings
with the SEC. Because of these risks, uncertainties and assumptions, you
should not place undue reliance on these forward-looking statements. All
forward-looking statements set forth in this release are qualified by
these cautionary statements and there can be no assurance that the
actual results or developments anticipated by us will be realized or,
even if substantially realized, that they will have the expected
consequences to or effects on us or our business or operations.
Forward-looking statements set forth in this release speak only as of
the date hereof, and we do not undertake any obligation to update
forward-looking statements to reflect subsequent events or
circumstances, changes in expectations or the occurrence of
unanticipated events, except to the extent required by law.
|
|
|
FY 2019
|
|
FY 2018
|
|
% Change
|
|
|
Adtalem Global Education Student Enrollments(1)
January Session
|
|
|
|
|
|
|
|
|
New students
|
|
5,230
|
|
4,987
|
|
+4.9%
|
|
|
Total students
|
|
118,990
|
|
115,611
|
|
+2.9%
|
|
|
|
|
|
|
|
|
|
|
|
Chamberlain University
|
|
|
|
|
|
|
|
|
November Session
|
|
|
|
|
|
|
|
|
New students²
|
|
2,617
|
|
2,806
|
|
-6.7%
|
|
|
Total students
|
|
30,833
|
|
29,719
|
|
+3.7%
|
|
|
|
|
|
|
|
|
|
|
|
January Session
|
|
|
|
|
|
|
|
|
New students
|
|
4,759
|
|
4,472
|
|
+6.4%
|
|
|
Total students
|
|
32,354
|
|
31,333
|
|
+3.3%
|
|
|
|
|
|
|
|
|
|
|
|
Medical and Veterinary
|
|
|
|
|
|
|
|
|
January Semester(3)
|
|
|
|
|
|
|
|
|
New students
|
|
471
|
|
515
|
|
-8.5%
|
|
|
Total students
|
|
5,548
|
|
5,938
|
|
-6.6%
|
|
|
1)
|
|
Includes the most recently reported enrollments at Adtalem's
postsecondary institutions
|
|
2)
|
|
Post-licensure online programs only; pre-licensure campus-based
programs start in September, January and May; Total students
includes pre and post-licensure enrollment
|
|
3)
|
|
Includes enrollments in its medical and veterinary preparatory
programs
|
|
ADTALEM GLOBAL EDUCATION INC.
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
|
2018
|
|
|
2018
|
|
|
2017
|
|
ASSETS:
|
|
|
(in thousands, except share and par value amounts)
|
|
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents
|
|
$
|
294,801
|
|
|
$
|
430,690
|
|
|
$
|
212,239
|
|
|
Marketable Securities and Investments
|
|
|
7,269
|
|
|
|
4,255
|
|
|
|
4,268
|
|
|
Restricted Cash
|
|
|
818
|
|
|
|
310
|
|
|
|
33
|
|
|
Accounts Receivable, Net
|
|
|
138,708
|
|
|
|
146,726
|
|
|
|
134,274
|
|
|
Prepaid Expenses and Other Current Assets
|
|
|
64,953
|
|
|
|
58,887
|
|
|
|
75,499
|
|
|
Current Assets Held for Sale
|
|
|
-
|
|
|
|
47,132
|
|
|
|
43,496
|
|
|
Total Current Assets
|
|
|
506,549
|
|
|
|
688,000
|
|
|
|
469,809
|
|
|
Land, Building and Equipment:
|
|
|
|
|
|
|
|
|
|
|
Land
|
|
|
43,829
|
|
|
|
48,177
|
|
|
|
46,908
|
|
|
Building
|
|
|
364,417
|
|
|
|
389,129
|
|
|
|
391,574
|
|
|
Equipment
|
|
|
271,979
|
|
|
|
302,516
|
|
|
|
293,665
|
|
|
Construction in Progress
|
|
|
23,136
|
|
|
|
25,360
|
|
|
|
26,225
|
|
|
|
|
|
703,361
|
|
|
|
765,182
|
|
|
|
758,372
|
|
|
Accumulated Depreciation
|
|
|
(345,062
|
)
|
|
|
(376,528
|
)
|
|
|
(360,854
|
)
|
|
Land, Building and Equipment Held for Sale, Net
|
|
|
-
|
|
|
|
-
|
|
|
|
20,821
|
|
|
Land, Building and Equipment, Net
|
|
|
358,299
|
|
|
|
388,654
|
|
|
|
418,339
|
|
|
Noncurrent Assets:
|
|
|
|
|
|
|
|
|
|
|
Deferred Income Taxes
|
|
|
19,141
|
|
|
|
38,780
|
|
|
|
31,968
|
|
|
Intangible Assets, Net
|
|
|
358,415
|
|
|
|
362,931
|
|
|
|
386,800
|
|
|
Goodwill
|
|
|
813,176
|
|
|
|
813,887
|
|
|
|
832,943
|
|
|
Other Assets, Net
|
|
|
66,643
|
|
|
|
39,259
|
|
|
|
34,671
|
|
|
Noncurrent Assets Held for Sale
|
|
|
-
|
|
|
|
13,450
|
|
|
|
37,070
|
|
|
Total Other Assets
|
|
|
1,257,375
|
|
|
|
1,268,307
|
|
|
|
1,323,452
|
|
|
TOTAL ASSETS
|
|
$
|
2,122,223
|
|
|
$
|
2,344,961
|
|
|
$
|
2,211,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts Payable
|
|
$
|
48,525
|
|
|
$
|
47,477
|
|
|
$
|
32,730
|
|
|
Accrued Salaries, Wages and Benefits
|
|
|
57,856
|
|
|
|
71,289
|
|
|
|
59,794
|
|
|
Accrued Liabilities
|
|
|
83,756
|
|
|
|
80,803
|
|
|
|
77,134
|
|
|
Deferred Revenue
|
|
|
51,173
|
|
|
|
106,773
|
|
|
|
69,953
|
|
|
Current Portion of Long-Term Debt
|
|
|
3,000
|
|
|
|
3,000
|
|
|
|
-
|
|
|
Current Liabilities Held for Sale
|
|
|
-
|
|
|
|
56,439
|
|
|
|
57,208
|
|
|
Total Current Liabilities
|
|
|
244,310
|
|
|
|
365,781
|
|
|
|
296,819
|
|
|
Noncurrent Liabilities:
|
|
|
|
|
|
|
|
|
|
|
Long-Term Debt
|
|
|
289,084
|
|
|
|
290,073
|
|
|
|
165,000
|
|
|
Deferred Income Taxes
|
|
|
32,398
|
|
|
|
29,115
|
|
|
|
31,745
|
|
|
Other Liabilities
|
|
|
118,133
|
|
|
|
131,380
|
|
|
|
101,232
|
|
|
Income Taxes Payable
|
|
|
-
|
|
|
|
-
|
|
|
|
88,562
|
|
|
Noncurrent Liabilities Held for Sale
|
|
|
-
|
|
|
|
216
|
|
|
|
878
|
|
|
Total Other Liabilities
|
|
|
439,615
|
|
|
|
450,784
|
|
|
|
387,417
|
|
|
TOTAL LIABILITIES
|
|
|
683,925
|
|
|
|
816,565
|
|
|
|
684,236
|
|
|
NONCONTROLLING INTEREST
|
|
|
8,651
|
|
|
|
9,110
|
|
|
|
7,405
|
|
|
SHAREHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
|
|
|
Common Stock, $0.01 Par Value, 200,000,000 Shares Authorized;
58,212,000,
|
|
|
|
|
|
|
|
|
|
|
59,893,000 and 60,295,000 Shares Outstanding at December 31, 2018,
|
|
|
|
|
|
|
|
|
|
|
June 30, 2018 and December 31, 2017, respectively
|
|
|
801
|
|
|
|
793
|
|
|
|
787
|
|
|
Additional Paid-in Capital
|
|
|
479,946
|
|
|
|
454,653
|
|
|
|
433,855
|
|
|
Retained Earnings
|
|
|
1,926,134
|
|
|
|
1,917,373
|
|
|
|
1,812,746
|
|
|
Accumulated Other Comprehensive Loss
|
|
|
(143,518
|
)
|
|
|
(142,168
|
)
|
|
|
(60,745
|
)
|
|
Treasury Stock, at Cost, 21,883,000, 19,390,000 and 18,451,000
Shares at
|
|
|
|
|
|
|
|
|
|
|
December 31, 2018, June 30, 2018 and December 31, 2017, respectively
|
|
|
(833,716
|
)
|
|
|
(711,365
|
)
|
|
|
(666,684
|
)
|
|
TOTAL SHAREHOLDERS' EQUITY
|
|
|
1,429,647
|
|
|
|
1,519,286
|
|
|
|
1,519,959
|
|
|
TOTAL LIABILITIES, NONCONTROLLING INTEREST AND
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY
|
|
$
|
2,122,223
|
|
|
$
|
2,344,961
|
|
|
$
|
2,211,600
|
|
|
ADTALEM GLOBAL EDUCATION INC.
|
|
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
|
|
(Unaudited)
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Six Months Ended
December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
(in thousands, except per share amounts)
|
|
REVENUE
|
|
$
|
316,594
|
|
|
$
|
308,211
|
|
|
$
|
600,784
|
|
|
$
|
601,354
|
|
|
OPERATING COST AND EXPENSE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Educational Services
|
|
|
158,232
|
|
|
|
157,443
|
|
|
|
306,885
|
|
|
|
330,619
|
|
|
Student Services and Administrative Expense
|
|
|
99,989
|
|
|
|
89,423
|
|
|
|
198,486
|
|
|
|
178,367
|
|
|
Restructuring Expense
|
|
|
3,645
|
|
|
|
1,426
|
|
|
|
43,193
|
|
|
|
2,563
|
|
|
Insurance Settlement Gain
|
|
|
(15,571
|
)
|
|
|
-
|
|
|
|
(15,571
|
)
|
|
|
-
|
|
|
Total Operating Cost and Expense
|
|
|
246,295
|
|
|
|
248,292
|
|
|
|
532,993
|
|
|
|
511,549
|
|
|
Operating Income from Continuing Operations
|
|
|
70,299
|
|
|
|
59,919
|
|
|
|
67,791
|
|
|
|
89,805
|
|
|
OTHER INCOME (EXPENSE):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and Dividend Income
|
|
|
2,173
|
|
|
|
1,365
|
|
|
|
4,118
|
|
|
|
3,483
|
|
|
Interest Expense
|
|
|
(5,556
|
)
|
|
|
(2,481
|
)
|
|
|
(11,758
|
)
|
|
|
(4,397
|
)
|
|
Investment Loss
|
|
|
(1,122
|
)
|
|
|
-
|
|
|
|
(1,122
|
)
|
|
|
-
|
|
|
Net Other Expense
|
|
|
(4,505
|
)
|
|
|
(1,116
|
)
|
|
|
(8,762
|
)
|
|
|
(914
|
)
|
|
Income from Continuing Operations Before Income Taxes
|
|
|
65,794
|
|
|
|
58,803
|
|
|
|
59,029
|
|
|
|
88,891
|
|
|
Income Tax Provision
|
|
|
(13,165
|
)
|
|
|
(110,276
|
)
|
|
|
(11,278
|
)
|
|
|
(114,751
|
)
|
|
Equity Method Investment Income (Loss)
|
|
|
-
|
|
|
|
6
|
|
|
|
-
|
|
|
|
(38
|
)
|
|
Income (Loss) from Continuing Operations
|
|
|
52,629
|
|
|
|
(51,467
|
)
|
|
|
47,751
|
|
|
|
(25,898
|
)
|
|
DISCONTINUED OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from Discontinued Operations Before Income Taxes
|
|
|
(8,313
|
)
|
|
|
(48,409
|
)
|
|
|
(14,448
|
)
|
|
|
(63,858
|
)
|
|
Loss on Disposal of Discontinued Operations Before
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Taxes
|
|
|
(32,714
|
)
|
|
|
-
|
|
|
|
(32,714
|
)
|
|
|
-
|
|
|
Income Tax Benefit
|
|
|
5,904
|
|
|
|
19,094
|
|
|
|
7,332
|
|
|
|
21,890
|
|
|
Loss from Discontinued Operations
|
|
|
(35,123
|
)
|
|
|
(29,315
|
)
|
|
|
(39,830
|
)
|
|
|
(41,968
|
)
|
|
NET INCOME (LOSS)
|
|
|
17,506
|
|
|
|
(80,782
|
)
|
|
|
7,921
|
|
|
|
(67,866
|
)
|
|
Net Income Attributable to Noncontrolling Interest
|
|
|
(211
|
)
|
|
|
(374
|
)
|
|
|
(156
|
)
|
|
|
(505
|
)
|
|
NET INCOME (LOSS) ATTRIBUTABLE TO ADTALEM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GLOBAL EDUCATION
|
|
$
|
17,295
|
|
|
$
|
(81,156
|
)
|
|
$
|
7,765
|
|
|
$
|
(68,371
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMOUNTS ATTRIBUTABLE TO ADTALEM GLOBAL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EDUCATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from Continuing Operations
|
|
$
|
52,418
|
|
|
$
|
(51,841
|
)
|
|
$
|
47,595
|
|
|
$
|
(26,403
|
)
|
|
Loss from Discontinued Operations
|
|
|
(35,123
|
)
|
|
|
(29,315
|
)
|
|
|
(39,830
|
)
|
|
|
(41,968
|
)
|
|
NET INCOME (LOSS) ATTRIBUTABLE TO ADTALEM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GLOBAL EDUCATION
|
|
$
|
17,295
|
|
|
$
|
(81,156
|
)
|
|
$
|
7,765
|
|
|
$
|
(68,371
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER COMMON SHARE ATTRIBUTABLE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TO ADTALEM GLOBAL EDUCATION SHAREHOLDERS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations
|
|
$
|
0.89
|
|
|
$
|
(0.85
|
)
|
|
$
|
0.80
|
|
|
$
|
(0.43
|
)
|
|
Discontinued Operations
|
|
$
|
(0.59
|
)
|
|
$
|
(0.48
|
)
|
|
$
|
(0.67
|
)
|
|
$
|
(0.68
|
)
|
|
Total
|
|
$
|
0.29
|
|
|
$
|
(1.33
|
)
|
|
$
|
0.13
|
|
|
$
|
(1.10
|
)
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations
|
|
$
|
0.87
|
|
|
$
|
(0.85
|
)
|
|
$
|
0.79
|
|
|
$
|
(0.43
|
)
|
|
Discontinued Operations
|
|
$
|
(0.59
|
)
|
|
$
|
(0.48
|
)
|
|
$
|
(0.66
|
)
|
|
$
|
(0.68
|
)
|
|
Total
|
|
$
|
0.29
|
|
|
$
|
(1.33
|
)
|
|
$
|
0.13
|
|
|
$
|
(1.10
|
)
|
|
ADTALEM GLOBAL EDUCATION INC.
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
(in thousands)
|
|
CASH FLOW FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Net Income (Loss)
|
|
$
|
7,921
|
|
|
$
|
(67,866
|
)
|
|
Loss from Discontinued Operations
|
|
|
39,830
|
|
|
|
41,968
|
|
|
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by
Operating Activities:
|
|
|
|
|
|
|
|
Stock-Based Compensation Expense
|
|
|
7,360
|
|
|
|
8,780
|
|
|
Depreciation
|
|
|
20,597
|
|
|
|
21,693
|
|
|
Amortization of Intangible Assets
|
|
|
4,238
|
|
|
|
4,960
|
|
|
Amortization of Deferred Debt Issuance Costs
|
|
|
784
|
|
|
|
351
|
|
|
Provision for Bad Debts
|
|
|
6,432
|
|
|
|
8,117
|
|
|
Deferred Income Taxes
|
|
|
22,924
|
|
|
|
380
|
|
|
Loss on Disposals, Accelerated Depreciation and Adjustments to Land,
Building and Equipment
|
|
|
41,875
|
|
|
|
29,987
|
|
|
Realized Loss on Investments
|
|
|
108
|
|
|
|
-
|
|
|
Unrealized Loss on Investments
|
|
|
1,014
|
|
|
|
-
|
|
|
Insurance Settlement Gain
|
|
|
(15,571
|
)
|
|
|
-
|
|
|
Changes in Assets and Liabilities:
|
|
|
|
|
|
|
|
Accounts Receivable
|
|
|
1,423
|
|
|
|
6,674
|
|
|
Prepaid Expenses and Other
|
|
|
(41,459
|
)
|
|
|
(32,592
|
)
|
|
Accounts Payable
|
|
|
1,691
|
|
|
|
(4,769
|
)
|
|
Accrued Salaries, Wages, Benefits and Liabilities
|
|
|
(12,458
|
)
|
|
|
(27,265
|
)
|
|
Deferred Revenue
|
|
|
(55,583
|
)
|
|
|
(33,613
|
)
|
|
Income Taxes Payable, Long-Term
|
|
|
-
|
|
|
|
88,562
|
|
|
Net Cash Provided by Operating Activities-Continuing Operations
|
|
|
31,126
|
|
|
|
45,367
|
|
|
Net Cash (Used in) Provided by Operating Activities-Discontinued
Operations
|
|
|
(8,105
|
)
|
|
|
4,412
|
|
|
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
|
|
23,021
|
|
|
|
49,779
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Capital Expenditures
|
|
|
(35,355
|
)
|
|
|
(31,473
|
)
|
|
Insurance Proceeds Received for Damage to Building and Equipment
|
|
|
35,706
|
|
|
|
-
|
|
|
Sales of Marketable Securities
|
|
|
1,136
|
|
|
|
-
|
|
|
Purchases of Marketable Securities
|
|
|
(5,290
|
)
|
|
|
(136
|
)
|
|
Payment for Purchase of Businesses, Net of Cash Acquired
|
|
|
-
|
|
|
|
(972
|
)
|
|
Loan to DeVry University
|
|
|
(10,000
|
)
|
|
|
-
|
|
|
Net Cash Used in Investing Activities-Continuing Operations
|
|
|
(13,803
|
)
|
|
|
(32,581
|
)
|
|
Net Cash (Used in) Provided by Investing Activities-Discontinued
Operations
|
|
|
(1,833
|
)
|
|
|
7,454
|
|
|
Cash and Restricted Cash Transferred in Divestitures of Discontinued
Operations
|
|
|
(48,876
|
)
|
|
|
-
|
|
|
NET CASH USED IN INVESTING ACTIVITIES
|
|
|
(64,512
|
)
|
|
|
(25,127
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from Exercise of Stock Options
|
|
|
16,784
|
|
|
|
9,582
|
|
|
Employee Taxes Paid on Withholding Shares
|
|
|
(6,401
|
)
|
|
|
(3,806
|
)
|
|
Proceeds from Stock Issued Under Colleague Stock Purchase Plan
|
|
|
312
|
|
|
|
391
|
|
|
Repurchase of Common Stock for Treasury
|
|
|
(115,933
|
)
|
|
|
(93,178
|
)
|
|
Payments of Seller Financed Obligations
|
|
|
(846
|
)
|
|
|
(7,941
|
)
|
|
Borrowings Under Credit Facility
|
|
|
-
|
|
|
|
201,000
|
|
|
Repayments Under Credit Facility
|
|
|
(1,500
|
)
|
|
|
(161,000
|
)
|
|
NET CASH USED IN FINANCING ACTIVITIES
|
|
|
(107,584
|
)
|
|
|
(54,952
|
)
|
|
Effects of Exchange Rate Differences
|
|
|
289
|
|
|
|
(1,043
|
)
|
|
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
|
|
(148,786
|
)
|
|
|
(31,343
|
)
|
|
Cash, Cash Equivalents and Restricted Cash at Beginning of Period
|
|
|
444,405
|
|
|
|
251,096
|
|
|
Cash, Cash Equivalents and Restricted Cash at End of Period
|
|
|
295,619
|
|
|
|
219,753
|
|
|
Less: Cash, Cash Equivalents and Restricted Cash of Discontinued
Operations at End of Period
|
|
|
-
|
|
|
|
7,481
|
|
|
Cash, Cash Equivalents and Restricted Cash at End of Period
|
|
$
|
295,619
|
|
|
$
|
212,272
|
|
|
ADTALEM GLOBAL EDUCATION INC.
|
|
CONTINUING OPERATIONS BY SEGMENT INFORMATION
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Six Months Ended
December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
Increase
(Decrease)
|
|
|
2018
|
|
|
2017
|
|
Increase
(Decrease)
|
|
REVENUE:
|
|
|
(in thousands)
|
|
Medical and Healthcare
|
|
$
|
212,627
|
|
|
$
|
203,297
|
|
|
4.6
|
%
|
|
$
|
414,727
|
|
|
$
|
394,582
|
|
|
5.1
|
%
|
|
Professional Education
|
|
|
42,142
|
|
|
|
30,359
|
|
|
38.8
|
%
|
|
|
77,788
|
|
|
|
70,401
|
|
|
10.5
|
%
|
|
Technology and Business
|
|
|
62,633
|
|
|
|
75,133
|
|
|
(16.6
|
)%
|
|
|
109,884
|
|
|
|
137,572
|
|
|
(20.1
|
)%
|
|
Home Office and Other
|
|
|
(808
|
)
|
|
|
(578
|
)
|
|
NM
|
|
|
|
(1,615
|
)
|
|
|
(1,201
|
)
|
|
NM
|
|
|
Total Consolidated Revenue
|
|
|
316,594
|
|
|
|
308,211
|
|
|
2.7
|
%
|
|
|
600,784
|
|
|
|
601,354
|
|
|
(0.1
|
)%
|
|
OPERATING INCOME (LOSS):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical and Healthcare
|
|
|
60,647
|
|
|
|
55,047
|
|
|
10.2
|
%
|
|
|
62,303
|
|
|
|
81,279
|
|
|
(23.3
|
)%
|
|
Professional Education
|
|
|
9,633
|
|
|
|
2,193
|
|
|
339.3
|
%
|
|
|
14,383
|
|
|
|
12,700
|
|
|
13.3
|
%
|
|
Technology and Business
|
|
|
8,471
|
|
|
|
13,991
|
|
|
(39.5
|
)%
|
|
|
5,726
|
|
|
|
15,852
|
|
|
(63.9
|
)%
|
|
Home Office and Other
|
|
|
(8,452
|
)
|
|
|
(11,312
|
)
|
|
NM
|
|
|
|
(14,621
|
)
|
|
|
(20,026
|
)
|
|
NM
|
|
|
Total Consolidated Operating Income
|
|
$
|
70,299
|
|
|
$
|
59,919
|
|
|
17.3
|
%
|
|
$
|
67,791
|
|
|
$
|
89,805
|
|
|
(24.5
|
)%
|
NON-GAAP INFORMATION
In accordance with U.S. Generally Accepted Accounting Principles
("GAAP"), the operating results of DeVry University and Carrington
College ("Carrington") are reclassified as discontinued operations for
the second quarter and first six months of fiscal year 2019 and 2018.
During the second quarter and the first six months of fiscal year 2019,
Adtalem recorded special items related to the following: (i)
restructuring expense related to the closing of the Ross University
School of Medicine ("RUSM"), which is part of the Medical and Healthcare
segment, campus in Dominica; (ii) loss on sale charges at Adtalem
Brazil, which is part of the Technology and Business segment, related to
the disposition of the Joao Pessoa institution (presented as
restructuring expense); (iii) restructuring expense at Adtalem's home
office (not related to any segment); (iv) insurance settlement gain
related to the final insurance settlement related to Hurricanes Irma and
Maria at the American University of the Caribbean School of Medicine
("AUC") and RUSM; and (v) adjustments to the preliminary income tax
charges related to the implementation of the Tax Cuts and Jobs Act of
2017 and tax charges related to the divestiture of DeVry University.
During the second quarter and the first six months of fiscal year 2018,
Adtalem recorded special items related to the following: (i)
restructuring expense primarily related to workforce reductions and real
estate consolidations at Adtalem's home office. The following tables
illustrate the effects of the discontinued operations and special items
on Adtalem's operating income from continuing operations and net income
from continuing operations. Management believes that the non-GAAP
disclosure of operating income from continuing operations excluding
special items, net income from continuing operations excluding special
items and earnings per share excluding the discontinued operations and
special items provides investors with useful supplemental information
regarding the underlying business trends and performance of Adtalem's
ongoing operations and is useful for period-over-period comparisons of
such operations given the special nature of discontinued operations,
restructuring charges, insurance settlement gain and certain income tax
charges. Adtalem uses these supplemental financial measures internally
in its management and budgeting process. However, these non-GAAP
financial measures should be viewed in addition to, and not as a
substitute for, Adtalem's reported results prepared in accordance with
GAAP. The following tables reconcile these non-GAAP measures to the most
directly comparable GAAP information (in thousands).
|
ADTALEM GLOBAL EDUCATION INC.
|
|
NON-GAAP OPERATING INCOME FROM CONTINUING OPERATIONS BY SEGMENT
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Six Months Ended
December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
Increase
(Decrease)
|
|
|
2018
|
|
|
2017
|
|
Increase
(Decrease)
|
|
Medical and Healthcare Operating Income
|
|
$
|
60,647
|
|
|
$
|
55,047
|
|
|
10.2
|
%
|
|
$
|
62,303
|
|
|
$
|
81,279
|
|
|
(23.3
|
)%
|
|
Restructuring Expense
|
|
|
2,445
|
|
|
|
-
|
|
|
NM
|
|
|
|
41,460
|
|
|
|
112
|
|
|
NM
|
|
|
Insurance Settlement Gain
|
|
|
(15,571
|
)
|
|
|
-
|
|
|
NM
|
|
|
|
(15,571
|
)
|
|
|
-
|
|
|
NM
|
|
|
Medical and Healthcare Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding Special Items
|
|
$
|
47,521
|
|
|
$
|
55,047
|
|
|
(13.7
|
)%
|
|
$
|
88,192
|
|
|
$
|
81,391
|
|
|
8.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology and Business Operating Income
|
|
$
|
8,471
|
|
|
$
|
13,991
|
|
|
(39.5
|
)%
|
|
$
|
5,726
|
|
|
$
|
15,852
|
|
|
(63.9
|
)%
|
|
Restructuring Expense
|
|
|
110
|
|
|
|
-
|
|
|
NM
|
|
|
|
185
|
|
|
|
-
|
|
|
NM
|
|
|
Technology and Business Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding Special Items
|
|
$
|
8,581
|
|
|
$
|
13,991
|
|
|
(38.7
|
)%
|
|
$
|
5,911
|
|
|
$
|
15,852
|
|
|
(62.7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home Office and Other Operating Loss
|
|
$
|
(8,452
|
)
|
|
$
|
(11,312
|
)
|
|
NM
|
|
|
$
|
(14,621
|
)
|
|
$
|
(20,026
|
)
|
|
NM
|
|
|
Restructuring Expense
|
|
|
1,090
|
|
|
|
1,426
|
|
|
NM
|
|
|
|
1,548
|
|
|
|
2,451
|
|
|
NM
|
|
|
Home Office and Other Operating Loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding Special Items
|
|
$
|
(7,362
|
)
|
|
$
|
(9,886
|
)
|
|
NM
|
|
|
$
|
(13,073
|
)
|
|
$
|
(17,575
|
)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adtalem Global Education Operating Income
|
|
$
|
70,299
|
|
|
$
|
59,919
|
|
|
17.3
|
%
|
|
$
|
67,791
|
|
|
$
|
89,805
|
|
|
(24.5
|
)%
|
|
Restructuring Expense
|
|
|
3,645
|
|
|
|
1,426
|
|
|
NM
|
|
|
|
43,193
|
|
|
|
2,563
|
|
|
NM
|
|
|
Insurance Settlement Gain
|
|
|
(15,571
|
)
|
|
|
-
|
|
|
NM
|
|
|
|
(15,571
|
)
|
|
|
-
|
|
|
NM
|
|
|
Adtalem Global Education Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding Special Items
|
|
$
|
58,373
|
|
|
$
|
61,345
|
|
|
(4.8
|
)%
|
|
$
|
95,413
|
|
|
$
|
92,368
|
|
|
3.3
|
%
|
|
ADTALEM GLOBAL EDUCATION INC.
|
|
NON-GAAP EARNINGS DISCLOSURE
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Six Months Ended
December 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
(in thousands, except per share amounts)
|
|
Net Income (Loss)
|
|
$
|
17,295
|
|
|
$
|
(81,156
|
)
|
|
$
|
7,765
|
|
|
$
|
(68,371
|
)
|
|
Earnings (Loss) per Share (diluted-2018, basic-2017)
|
|
$
|
0.29
|
|
|
$
|
(1.33
|
)
|
|
$
|
0.13
|
|
|
$
|
(1.10
|
)
|
|
Continuing Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring Expense
|
|
$
|
3,645
|
|
|
$
|
1,426
|
|
|
$
|
43,193
|
|
|
$
|
2,563
|
|
|
Effect on Earnings per Share (diluted)
|
|
$
|
0.06
|
|
|
$
|
0.02
|
|
|
$
|
0.71
|
|
|
$
|
0.04
|
|
|
Insurance Settlement Gain
|
|
$
|
(15,571
|
)
|
|
$
|
-
|
|
|
$
|
(15,571
|
)
|
|
$
|
-
|
|
|
Effect on Earnings per Share (diluted)
|
|
$
|
(0.26
|
)
|
|
$
|
-
|
|
|
$
|
(0.26
|
)
|
|
$
|
-
|
|
|
Tax Cuts and Jobs Act of 2017 and Tax Charges Related
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to the Divestiture of DeVry University
|
|
$
|
1,526
|
|
|
$
|
101,196
|
|
|
$
|
1,526
|
|
|
$
|
101,196
|
|
|
Effect on Earnings per Share (diluted)
|
|
$
|
0.03
|
|
|
$
|
1.63
|
|
|
$
|
0.03
|
|
|
$
|
1.61
|
|
|
Income Tax Impact on Non-GAAP Adjustments
|
|
$
|
2,483
|
|
|
$
|
(528
|
)
|
|
$
|
(4,969
|
)
|
|
$
|
(855
|
)
|
|
Effect on Earnings per Share (diluted)
|
|
$
|
0.04
|
|
|
$
|
(0.01
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
(0.01
|
)
|
|
Discontinued Operations, net of tax
|
|
$
|
35,123
|
|
|
$
|
29,315
|
|
|
$
|
39,830
|
|
|
$
|
41,968
|
|
|
Effect on Earnings per Share (diluted-2018, basic-2017)
|
|
$
|
0.59
|
|
|
$
|
0.48
|
|
|
$
|
0.66
|
|
|
$
|
0.68
|
|
|
Net Income from Continuing Operations Excluding Special
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items, net of tax
|
|
$
|
44,501
|
|
|
$
|
50,253
|
|
|
$
|
71,774
|
|
|
$
|
76,501
|
|
|
Earnings per Share from Continuing Operations Excluding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items, net of tax (diluted)
|
|
$
|
0.74
|
|
|
$
|
0.81
|
|
|
$
|
1.18
|
|
|
$
|
1.22
|
|
|
Shares used in EPS calculation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
NA
|
|
|
61,234
|
|
|
|
NA
|
|
|
62,009
|
|
|
Diluted
|
|
|
60,000
|
|
|
|
62,023
|
|
|
|
60,598
|
|
|
|
62,705
|
|
|
SUPPLEMENTAL FINANCIAL INFORMATION
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2018
|
|
|
|
|
(in thousands)
|
|
Revenue:
|
|
|
Medical and
Healthcare
|
|
|
Professional
Education
|
|
|
Technology
and Business
|
|
|
Home Office
and Other
|
|
|
Consolidated
|
|
Fiscal Year 2018 as Reported
|
|
$
|
203,297
|
|
|
$
|
30,359
|
|
|
$
|
75,133
|
|
|
$
|
(578
|
)
|
|
$
|
308,211
|
|
|
Organic Growth (Decline)
|
|
|
8,438
|
|
|
|
10,834
|
|
|
|
(2,242
|
)
|
|
|
(230
|
)
|
|
|
16,800
|
|
|
Effect of Acquisitions
|
|
|
-
|
|
|
|
949
|
|
|
|
474
|
|
|
|
-
|
|
|
|
1,423
|
|
|
Hurricane Impact
|
|
|
892
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
892
|
|
|
Effect of Currency Change
|
|
|
-
|
|
|
|
-
|
|
|
|
(10,732
|
)
|
|
|
-
|
|
|
|
(10,732
|
)
|
|
Fiscal Year 2019 as Reported
|
|
$
|
212,627
|
|
|
$
|
42,142
|
|
|
$
|
62,633
|
|
|
$
|
(808
|
)
|
|
$
|
316,594
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year 2019 % Change:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Growth (Decline)
|
|
|
4.2
|
%
|
|
|
35.7
|
%
|
|
|
(3.0
|
%)
|
|
|
NM
|
|
|
|
5.5
|
%
|
|
Effect of Acquisitions
|
|
|
-
|
|
|
|
3.1
|
%
|
|
|
0.6
|
%
|
|
|
NM
|
|
|
|
0.5
|
%
|
|
Hurricane Impact
|
|
|
0.4
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
NM
|
|
|
|
0.3
|
%
|
|
Constant Currency Change
|
|
|
4.6
|
%
|
|
|
38.8
|
%
|
|
|
(2.4
|
%)
|
|
|
NM
|
|
|
|
6.2
|
%
|
|
Effect of Currency Change
|
|
|
-
|
|
|
|
-
|
|
|
|
(14.3
|
%)
|
|
|
NM
|
|
|
|
(3.5
|
%)
|
|
Fiscal Year 2019 % Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
as Reported
|
|
|
4.6
|
%
|
|
|
38.8
|
%
|
|
|
(16.6
|
%)
|
|
|
NM
|
|
|
|
2.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended December 31, 2018
|
|
|
|
|
(in thousands)
|
|
Revenue:
|
|
|
Medical and
Healthcare
|
|
|
Professional
Education
|
|
|
Technology
and Business
|
|
|
Home Office
and Other
|
|
|
Consolidated
|
|
Fiscal Year 2018 as Reported
|
|
$
|
394,582
|
|
|
$
|
70,401
|
|
|
$
|
137,572
|
|
|
$
|
(1,201
|
)
|
|
$
|
601,354
|
|
|
Organic Growth (Decline)
|
|
|
11,909
|
|
|
|
5,496
|
|
|
|
(5,464
|
)
|
|
|
(414
|
)
|
|
|
11,527
|
|
|
Effect of Acquisitions
|
|
|
-
|
|
|
|
1,891
|
|
|
|
1,100
|
|
|
|
-
|
|
|
|
2,991
|
|
|
Hurricane Impact
|
|
|
8,236
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8,236
|
|
|
Effect of Currency Change
|
|
|
-
|
|
|
|
-
|
|
|
|
(23,324
|
)
|
|
|
-
|
|
|
|
(23,324
|
)
|
|
Fiscal Year 2019 as Reported
|
|
$
|
414,727
|
|
|
$
|
77,788
|
|
|
$
|
109,884
|
|
|
$
|
(1,615
|
)
|
|
$
|
600,784
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year 2019 % Change:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Growth (Decline)
|
|
|
3.0
|
%
|
|
|
7.8
|
%
|
|
|
(4.0
|
%)
|
|
|
NM
|
|
|
|
1.9
|
%
|
|
Effect of Acquisitions
|
|
|
-
|
|
|
|
2.7
|
%
|
|
|
0.8
|
%
|
|
|
NM
|
|
|
|
0.5
|
%
|
|
Hurricane Impact
|
|
|
2.1
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
NM
|
|
|
|
1.4
|
%
|
|
Constant Currency Change
|
|
|
5.1
|
%
|
|
|
10.5
|
%
|
|
|
(3.2
|
%)
|
|
|
NM
|
|
|
|
3.8
|
%
|
|
Effect of Currency Change
|
|
|
-
|
|
|
|
-
|
|
|
|
(17.0
|
%)
|
|
|
NM
|
|
|
|
(3.9
|
%)
|
|
Fiscal Year 2019 % Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
as Reported
|
|
|
5.1
|
%
|
|
|
10.5
|
%
|
|
|
(20.1
|
%)
|
|
|
NM
|
|
|
|
(0.1
|
%)
|
|
SUPPLEMENTAL FINANCIAL INFORMATION
|
|
(Unaudited)
|
|
|
|
|
|
|
Three Months Ended December 31, 2018
|
|
|
|
|
(in thousands)
|
|
Total Operating Cost and Expense:
|
|
|
Medical and
Healthcare
|
|
|
Professional
Education
|
|
|
Technology
and Business
|
|
|
Home Office
and Other
|
|
|
Consolidated
|
|
Fiscal Year 2018 as Reported
|
|
$
|
148,249
|
|
|
$
|
28,166
|
|
|
$
|
61,142
|
|
|
$
|
10,735
|
|
|
$
|
248,292
|
|
|
Cost Increase (Reduction)
|
|
|
16,612
|
|
|
|
3,110
|
|
|
|
1,262
|
|
|
|
(2,755
|
)
|
|
|
18,229
|
|
|
Effect of Acquisitions
|
|
|
-
|
|
|
|
1,233
|
|
|
|
233
|
|
|
|
-
|
|
|
|
1,466
|
|
|
Hurricane Impact
|
|
|
245
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
245
|
|
|
Restructuring Expense Change
|
|
|
2,445
|
|
|
|
-
|
|
|
|
110
|
|
|
|
(336
|
)
|
|
|
2,219
|
|
|
Insurance Settlement Gain
|
|
|
(15,571
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(15,571
|
)
|
|
Effect of Currency Change
|
|
|
-
|
|
|
|
-
|
|
|
|
(8,585
|
)
|
|
|
-
|
|
|
|
(8,585
|
)
|
|
Fiscal Year 2019 as Reported
|
|
$
|
151,980
|
|
|
$
|
32,509
|
|
|
$
|
54,162
|
|
|
$
|
7,644
|
|
|
$
|
246,295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year 2019 % Change:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost Increase (Reduction)
|
|
|
11.2
|
%
|
|
|
11.0
|
%
|
|
|
2.1
|
%
|
|
|
NM
|
|
|
|
7.3
|
%
|
|
Effect of Acquisitions
|
|
|
-
|
|
|
|
4.4
|
%
|
|
|
0.4
|
%
|
|
|
NM
|
|
|
|
0.6
|
%
|
|
Hurricane Impact
|
|
|
0.2
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
NM
|
|
|
|
0.1
|
%
|
|
Restructuring Expense Change
|
|
|
1.6
|
%
|
|
|
-
|
|
|
|
0.2
|
%
|
|
|
NM
|
|
|
|
0.9
|
%
|
|
Insurance Settlement Gain
|
|
|
(10.5
|
%)
|
|
|
-
|
|
|
|
-
|
|
|
|
NM
|
|
|
|
(6.3
|
%)
|
|
Constant Currency Change
|
|
|
2.5
|
%
|
|
|
15.4
|
%
|
|
|
2.6
|
%
|
|
|
NM
|
|
|
|
2.7
|
%
|
|
Effect of Currency Change
|
|
|
-
|
|
|
|
-
|
|
|
|
(14.0
|
%)
|
|
|
NM
|
|
|
|
(3.5
|
%)
|
|
Fiscal Year 2019 % Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
as Reported
|
|
|
2.5
|
%
|
|
|
15.4
|
%
|
|
|
(11.4
|
%)
|
|
|
NM
|
|
|
|
(0.8
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended December 31, 2018
|
|
|
|
|
(in thousands)
|
|
Total Operating Cost and Expense:
|
|
|
Medical and
Healthcare
|
|
|
Professional
Education
|
|
|
Technology
and Business
|
|
|
Home Office
and Other
|
|
|
Consolidated
|
|
Fiscal Year 2018 as Reported
|
|
$
|
313,303
|
|
|
$
|
57,701
|
|
|
$
|
121,720
|
|
|
$
|
18,825
|
|
|
$
|
511,549
|
|
|
Cost Increase (Reduction)
|
|
|
26,715
|
|
|
|
3,325
|
|
|
|
1,406
|
|
|
|
(4,915
|
)
|
|
|
26,531
|
|
|
Effect of Acquisitions
|
|
|
-
|
|
|
|
2,379
|
|
|
|
650
|
|
|
|
-
|
|
|
|
3,029
|
|
|
Hurricane Impact
|
|
|
(13,372
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(13,372
|
)
|
|
Restructuring Expense Change
|
|
|
41,348
|
|
|
|
-
|
|
|
|
185
|
|
|
|
(903
|
)
|
|
|
40,630
|
|
|
Insurance Settlement Gain
|
|
|
(15,571
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(15,571
|
)
|
|
Effect of Currency Change
|
|
|
-
|
|
|
|
-
|
|
|
|
(19,803
|
)
|
|
|
-
|
|
|
|
(19,803
|
)
|
|
Fiscal Year 2019 as Reported
|
|
$
|
352,423
|
|
|
$
|
63,405
|
|
|
$
|
104,158
|
|
|
$
|
13,007
|
|
|
$
|
532,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year 2019 % Change:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost Increase (Reduction)
|
|
|
8.5
|
%
|
|
|
5.8
|
%
|
|
|
1.2
|
%
|
|
|
NM
|
|
|
|
5.2
|
%
|
|
Effect of Acquisitions
|
|
|
-
|
|
|
|
4.1
|
%
|
|
|
0.5
|
%
|
|
|
NM
|
|
|
|
0.6
|
%
|
|
Hurricane Impact
|
|
|
(4.3
|
%)
|
|
|
-
|
|
|
|
-
|
|
|
|
NM
|
|
|
|
(2.6
|
%)
|
|
Restructuring Expense Change
|
|
|
13.2
|
%
|
|
|
-
|
|
|
|
0.2
|
%
|
|
|
NM
|
|
|
|
7.9
|
%
|
|
Insurance Settlement Gain
|
|
|
(5.0
|
%)
|
|
|
-
|
|
|
|
-
|
|
|
|
NM
|
|
|
|
(3.0
|
%)
|
|
Constant Currency Change
|
|
|
12.5
|
%
|
|
|
9.9
|
%
|
|
|
1.8
|
%
|
|
|
NM
|
|
|
|
8.1
|
%
|
|
Effect of Currency Change
|
|
|
-
|
|
|
|
-
|
|
|
|
(16.3
|
%)
|
|
|
NM
|
|
|
|
(3.9
|
%)
|
|
Fiscal Year 2019 % Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
as Reported
|
|
|
12.5
|
%
|
|
|
9.9
|
%
|
|
|
(14.4
|
%)
|
|
|
NM
|
|
|
|
4.2
|
%
|
|
SUPPLEMENTAL FINANCIAL INFORMATION
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2018
|
|
|
|
|
(in thousands)
|
|
Operating Income (Loss):
|
|
|
Medical and
Healthcare
|
|
|
Professional
Education
|
|
|
Technology
and Business
|
|
|
Home Office
and Other
|
|
|
Consolidated
|
|
Fiscal Year 2018 as Reported
|
|
$
|
55,047
|
|
|
$
|
2,193
|
|
|
$
|
13,991
|
|
|
$
|
(11,312
|
)
|
|
$
|
59,919
|
|
|
Organic Change
|
|
|
(8,173
|
)
|
|
|
7,724
|
|
|
|
(3,504
|
)
|
|
|
2,524
|
|
|
|
(1,429
|
)
|
|
Effect of Acquisitions
|
|
|
-
|
|
|
|
(284
|
)
|
|
|
241
|
|
|
|
-
|
|
|
|
(43
|
)
|
|
Hurricane Impact
|
|
|
647
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
647
|
|
|
Restructuring Expense Change
|
|
|
(2,445
|
)
|
|
|
-
|
|
|
|
(110
|
)
|
|
|
336
|
|
|
|
(2,219
|
)
|
|
Insurance Settlement Gain
|
|
|
15,571
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
15,571
|
|
|
Effect of Currency Change
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,147
|
)
|
|
|
-
|
|
|
|
(2,147
|
)
|
|
Fiscal Year 2019 as Reported
|
|
$
|
60,647
|
|
|
$
|
9,633
|
|
|
$
|
8,471
|
|
|
$
|
(8,452
|
)
|
|
$
|
70,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended December 31, 2018
|
|
|
|
|
(in thousands)
|
|
Operating Income (Loss):
|
|
|
Medical and
Healthcare
|
|
|
Professional
Education
|
|
|
Technology
and Business
|
|
|
Home Office
and Other
|
|
|
Consolidated
|
|
Fiscal Year 2018 as Reported
|
|
$
|
81,279
|
|
|
$
|
12,700
|
|
|
$
|
15,852
|
|
|
$
|
(20,026
|
)
|
|
$
|
89,805
|
|
|
Organic Change
|
|
|
(14,807
|
)
|
|
|
2,171
|
|
|
|
(6,870
|
)
|
|
|
4,502
|
|
|
|
(15,004
|
)
|
|
Effect of Acquisitions
|
|
|
-
|
|
|
|
(488
|
)
|
|
|
450
|
|
|
|
-
|
|
|
|
(38
|
)
|
|
Hurricane Impact
|
|
|
21,608
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
21,608
|
|
|
Restructuring Expense Change
|
|
|
(41,348
|
)
|
|
|
-
|
|
|
|
(185
|
)
|
|
|
903
|
|
|
|
(40,630
|
)
|
|
Insurance Settlement Gain
|
|
|
15,571
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
15,571
|
|
|
Effect of Currency Change
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,521
|
)
|
|
|
-
|
|
|
|
(3,521
|
)
|
|
Fiscal Year 2019 as Reported
|
|
$
|
62,303
|
|
|
$
|
14,383
|
|
|
$
|
5,726
|
|
|
$
|
(14,621
|
)
|
|
$
|
67,791
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190207005818/en/
