Maureen Resac | VP IR & Treasury |
Lisa Wardell | Chairman, President & CEO |
Michael Randolfi | CFO & Treasurer |
Gregory Pendy | Sidoti & Company |
Hello, and welcome to the Adtalem Global Education First Quarter Fiscal Year 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Maureen Resac, Vice President, Treasury and Investor Relations. Ms. ahead. go please Resac,
Chief to may it made otherwise, of forward-looking future in except whether which me of to the us law. forward-looking and that Adtalem's Randolfi, Chief Chief date the conference by Stephen President With made or SEC remind on Harbor like Lisa that publicly Safe We within you Senior team or the filings August Wardell, and this Beard, and Officer; our information and Chairman whether currently Executive are Risk will Financial Officer. today you. I'd annual leadership time, statements, with to Any available more contain XA, to from the call are performance Vice Operating statements Thank result recent Officer; of Mike from us Adtalem made. a most of and only as meaning may of the Education XXXX Reform with uncertainties new verbal, and factors could statement Private only no differ speaks financial these the update to undertake differ time or and of risks condition the provision involve any Factors, from on that risks, by with Act as cause future Global on results that by statements. and those Securities respect developments, Actual our Potential described results Form was filed forward-looking SEC. is other written implied Litigation uncertainties. the projected materially other report based fully Item on obligation XX, XXXX XX-K of be to information, as forward-looking required
most which refer comparable to our direct not call, GAAP our are substitute, commentary measures, today's During measures. supplement, to though intended financial non-GAAP will
items on website. be non-GAAP which Please the as is available financial reconciliation to discussed to our GAAP Our on made and and measures, the webcast that, all call during continuing today's replays prior to and financial please call the XX other To information results And press release, press call over access operations of period, refer Lisa. the GAAP today stated. comparisons a note basis, special are as today's exclude that comparison quantitative release. are to contains I'll well now unless are today's available Telephone days. otherwise replay, in for and of year turn to with
XXXX and total mid-single-digit performance strong income, in provide I solid the delivering you new and enrolment double-digit mid-single-digit to product the then in result Thank first discuss the our key and on at Further, today. our student growth I student veterinary Investor quarter The and up that services double-digit will solutions our nearly us and our within Chamberlain results from vertical we business our A revenue growth execution outlook, results our momentum, quarter new demonstrate over rolled we growth is driven in year. workforce prior University. and fiscal call the is strategic our we'll discussing performance growth, with our offerings turn will financial XXXX of saw OnCourse Day medical outcomes, a of at operating Learning. and highlights our investments, for entered strength our for strategy with our exceptional strategic Mike schools. with out joining by open working. results Walden highlight doubling XXX% before significant operational We by by the our enrolment and our marketing on of call segments before our revenue compared that acquire questions. led on announcement focus in of to growth line begin of X.X% update to turning growth an financial to we EPS to
online were our generate pivoted which throughout from While clearly, our for helped and to us leverage negative technology our teams results employer customers business impact allowed mitigate capabilities COVID-XX, virtual our the strong this and to and partners, students, quarter. disruptions and there adjust offerings
Turning University, we agreement our in announced to September. to Walden acquire which
this signing for clinical regarding and have filing, inquiry Science to in you site of in placements Laureate September Nursing may receipt Walden's As cost an of of of Master availability X seen and provided an on days disclosed from On U.S. XX-Q XX, Department the us the our update we content the acquisition. program. Justice agreement, of program the after the the
the We our allegations, transaction. closing which complete our the prior intend to we and purchase own any launched agreement the of under rights have exercised investigation into to
take we matters company, committed and and know, our right what's and to seriously, academic doing you we're institutions As shareholders. these students our extremely our for
pursue indicated financial into experience investigation our types We the all to protect to and have available inquiry, with Walden our and In we believe merits DOJ in the stakeholders. matters. these closing the past interest the agreement of earlier and continue the will our that acquisition, in the the Should this allegations regard of options legacy we're of our we Walden continuing their substantiate of strategic to growth University meantime, results us contained matter to the to work ensure quarter. ability purchase XX-Q strong synergies the to to the filing enrolment transaction. conditions identified institutions. With satisfy and announced fully we in the when today Laureate had we realize
marketing refinements in predicted and investments in our are investments we noted, when the As and new generating quarters. made the we returns offerings program strategic previous
taxpayers of recent the of learners which year is XXXX, X.X%. Department ensuring that for that combined fiscal Title realize private and return is academic for-profit for are the rate academic show superior of their the Education, schools IV than superior below realize a Adtalem's investment Our professional rate institutions less funding funds. had X-year the of our X.X%, taxpayer's half cohort outcomes data XX.X% critical default schools of and continued focus on ambitions on evidenced by of for for not-for-profit is Strong well rate in private students driving by published for which outcomes combined
XX% first time year NCLEX Veterinary pass through time pass XXXX, XXXX a calendar XX%-plus XX, With their a rate for XXXX residency a XX% Medicine June Ross NAVLE rate first at positioned at at rate and XXXX-XXXX Med to and of XX% the first-time rate Ross first AUC of to time residency match students in the match well are our be graduates, successful professions. of Chamberlain
of shortage While care been became the chronic of time, more pandemic. professionals has that even there a burdens the some for during evident shortage health
graduating over need XXXX year. over important our the this minted Science XXX Bachelor this past from institutions addressing physicians are newly of with nurses We and
and clinical results. getting Turning million care quarter back are in-person supported growth to exceptional $X.XX, of our delivered In fill first $XXX by verticals. strong our to working revenue the we our professionals to of gap students medical We and both by for experiences. supply-demand care segment, health in health EPS
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to remain elevated over for long-term. demand services expect We telehealth the
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session, September Med growth generated reflects the the also strong AUC single new brands in Ross strength achieved and which digits, more student academic schools academic marketing to In that refinements high the double-digit student quarter. talent and outcomes, investments grew leadership of leverage during and Our our and outcomes. recruiting medical new growth, enrolment in enrolment the strong
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residency our been clinical the our that to of experiences will We all match complete needed process. clinical the strong ensure that students leveraging in to are able have participate also be successful in to relationships
we June, training As our over engaged since across sites. online in a had medical of result, in clinical clinical person network and have students X,XXX
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to Services. Turning Financial
previously We over offerings to long-term these continue constraints held see that might September growth. including attracted attendees. conferences been to began without and certificate the credits new paid disruption infrastructure we to this virtual ACAMS education Vegas opportunity opportunity XXXX multilingual their invest have environment holders conferences. global vertical Through for processes important and certification. virtual Las success in continuing as of on to X-day due in CAMS conference an in a the for we to where earn position our XX, strong a launch conference, of a serve areas to programs, in-person Further, limited the
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are digits double for bipartisan to revenue long-term work per on to continue workforce, a time, our These same efforts quarter's us a the their combined benefits diverse remarkable in to valuable the administration. they mid-single path In our grow on and low with students cost health and efforts the our are contributions year Mike this we'd and strong very XXXX make to the of from the and with share results. and on drilled marketing any initiatives our resiliency and during partners summary, discuss care address measures. strong strategic digits. we pandemic to we workforce our health dedication. efficiency which remainder At issues, our the employer Our capturing year. the will for Overall, partner earnings reflects efforts in our execution focus shortages well as guidance, we the professions thank strength teams fiscal the expect to like
on to workforce As outcomes to discuss to remain accelerate growth that, the provider this student we over now and and year continuing financial forward momentum will focused Mike call generate value. our solutions our strategy to turn superior the progresses, foster With I drive shareholder highlights.
steady continuing items, and and of new a earnings double-digit include return to reported revenue first for and solid operations, of Lisa, enrolment increasing revenue $X.XX. everyone. growth services the while operational continued results X.X% expanded were Highlights excluding in our and both We million prior you, share within special across heavily vertical, total all quarter investments clinicals to drive hello, and with student the academic schools growth per earnings $XXX.X medical in and outcomes. The strong to continuing our execution to fiscal financial XXXX, from year influenced results by verticals. superior our Thank growing offerings share XXX% per marketing, strategic revenue growth,
seeing expense when Student was variable initiatives COVID-XX, the operating special the expense to was quarter. efforts delivery also year opened per are variable the earnings $X.XX to by across coupled Operating were Net increased those $XXX.X travel-related across enrolments. million with during We efficiencies Investments at $X.XX, as variable in in our items, now fully Cost year. special with operations, online continuing the to million organization, bad essentially year-over-year lower fiscal million administrative $XX.X and and million future initiatives. margin institutions excluding compared debt of expense. student flat XXX% year. quarter efficiency year Consolidated were million Chamberlain, compared compared enrolment driven all in a primarily revenue compared efficiency increases lower first to on to $XX.X or instruction special by with increased impact with driven services excluding in operations, $XXX.X services items, growth, the lower with of on-campus first in as benefited support income income, XXXX XX.X% the million cost prior of efficiency. XX.X% diluted $XX.X costs first returns ongoing the items, continuing quarter first prior the year, due XXXX, increased variable well the quarter by lower new from costs campuses and other lower and And and expenses, income instruction decreased of of was cost of share fiscal associated to not with $XX.X the prior from cost excluding investments from increase. significant given increase performance educational offset
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of quarter, we the XX.X% the While new in are compared and total to the largely increased and clinical school prior XX.X% back respect September as not the XX.X% student With Chamberlain, XXX%. year resumed during today, with revenue increased for session, to respectively. yet and period, enrolment
school. the strong compared In year, impact addition, reduced for the for by course enrolment underlying prior total enrolment represents over by schools quarter of year veterinary the influencing driven the clinical decreased for significantly student the the medical that revenue. with growth, and X.X% at the COVID-XX first Chamberlain have Revenue record we in refinements enrolment last the Chamberlain's supported investments and and operational made nurses. strategic demand are The of September housing
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Ross operational and scale segment as leverage maintained supported the and XX.X% growth Medical the income, within well increase excluding Ross September September allowed improvement improvements student in of that student grew segment. Med capacity and total high currently to is high at enrolment was million, was grew Vet new first the This the which $XX for strategic strong enrolment digits, level special the single an by the double items our new compared enrolment Chamberlain with session, us at AUC student Healthcare in session. its For digits, quarter, have as year. operating revenue last for
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to Financial Turning segment. Services our now
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Services an increase lower income The $X.X quarter to Learning variable by growth at financial Excluding operating of XXX.X% all at led in first cost OnCourse businesses, in special and in in items, and operating measures our segment ACAMS. driven operating increase efficiency the revenue Becker Financial income and million. segment across increased by was income services the
with increase to operations first now balance a and $XX.X compared provided year. position. financial the million, Turning totaled quarter cash XXX% for the by Net prior our sheet continuing
capital $XX.X totaled Our expenditures the quarter million. for
cash On a in in and generated of free free increase cash earnings working the with cash is year flow million of increased million free We of closed cash includes $XX.X driven largely $XXX.X approach achieving thoughtful $XXX.X a and allocation, committed borrowings capital the capital quarter capital outstanding first bank less of timing. We million equivalents The As and which with compared define cash by result, We million. cash to flow benefit of our period. a well the we as business million remain generated investing cash we free to believe value. modest We prior expenditures. flow by level to flow. price equity its current of in our basis, cash of trailing for provided $XX growth returning continuing a below operations shareholders. $XXX.X XX-month the is and intrinsic leverage,
to the year. $XXX coupled the with needs, we up As during shares remainder million fiscal anticipate we look year of our at anticipated cash fiscal repurchasing XXXX, cash generation in of
track strategic revenue mentioned, achieve low the growth during on growth share Lisa planning and earnings double-digit goals our remain per As to mid-single-digit long-term we of horizon.
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enrolments. we increasing earnings our marketing to to May Regarding note investments per share for January drive are and that the it quarter, further to is important second continue
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first be is now Pendy Greg question-and-answer [Operator question conducting We'll Sidoti. session. Instructions] from from Our Thanks. coming today
is live. line Your now
Hey, my taking question. guys. Thanks for
been was side. under the employment guess, in know, back you in to I it side, maybe to how salaries was prior were were there's talk a the in segment the mentioned especially the veterinarian under the of I You thought interesting, Can I assuming on gainful if that administration, is similar just role pre-XXXX? prepared earlier call, place, come that are? starting maybe about believe, and to lot new what strength, way back a it that I come demand -
And with sure, of also Yeah, during getting purchasing time pets. Greg. pets People lot time. buying about a noticed more talk people and this spending I we are and
that too. demand, So bolstered I think
we've know, demand. robust As really always you had
cetera. was first came Ross particularly five Healthcare, years of now, ago partners a in et In four, vet issue of Vet. XX% veterinarians Banfield, for that, between produce because the when a of - gainful this going through lot is that between school employment, with terms graduate Mars believe and we've to the U.S. to done not we our of issue, an the about employee work do We an sort be X%
obviously, that on of demand. because in in the probably physician previous was as a it's so And working is the When paid school but residency, of vet has way you Same is into considered more. five that come When the account. position apprenticeship, a But started been just would. employment, $XX,XXX vets, if on residency rules we reason starting a much taken salaries, to with And about they get of of relationships know less. journey employee in an years get not the not or based on they is this out, will, they $XXX,XXX, now. under some paid When same the to gainful good average important $XX,XXX there. closer of in our the terms partners, so, really that $XXX,XXX, have it was we the
helping that aisle. former the understand And been administration vets the now helping the and up that of put forward the in a successful would reason the similar administration, ends that, wherever that administration active calculations physicians going very current them in so we've to both certainly, is the you will. But sides in and administration, if position
so in relates - more regard. much regulatory it any with program robust as believe that to graduate the salaries a great changes program, now, And we we're shape in starting and
a Thanks lot.
to like of Instructions] We've floor [Operator turn back closing you. session. I'd over the any Thank or comments. question-and-answer the reached for end further our
for joining on you. us today Thank you And thank our call.
a if day. As always, a have any you you please me give Have call. much. good very Thank questions,
teleconference. does you. Thank conclude That today's
may you today. We at You wonderful a disconnect day. thank for your line have time. your And participation this