[February 06, 2018] |
|
Adtalem Global Education Announces Second Quarter Fiscal 2018 Results
Adtalem Global Education (NYSE: ATGE), a leading global education
provider, today reported academic, operating and financial results for
its fiscal 2018 second quarter ended December 31, 2017, including
enrollment results at Carrington College, Chamberlain University, its
medical and veterinary schools and DeVry University/Keller Graduate
School of Management.
"Our revenue profile and growth outlook continue to improve as we
execute on our strategic plan," said Lisa Wardell, president and CEO of
Adtalem Global Education. "We are expanding our presence across our core
sectors and directing our resources toward the most promising revenue
opportunities within our verticals. Everything we do is centered on
increasing the value proposition we provide to our students and their
employers, while positioning our portfolio to grow in a profitable and
sustainable manner. Our strong cash flow generation, healthy financial
position and increasing operating leverage support our ongoing
commitment to balanced capital allocation that includes returning
capital to our fellow owners."
Financial and Operating Highlights
Selected financial data for the three months ended December 31, 2017:
-
Revenue of $337.2 million increased 1.0 percent compared to the prior
year
-
Net loss of $81.2 million compared to net income of $14.4 million in
the prior year; net income from continuing operations excluding
special items was $47.3 million, compared to $41.1 million in the
prior year
-
Diluted loss per share was $1.33, compared to earnings per share of
$0.23 in the prior year; diluted earnings per share from continuing
operations excluding special items was $0.76, compared to $0.64 in the
prior year
-
Operating cash flow for the first six months of fiscal year 2018 was
$49.6 million, compared to $41.5 million in the prior year
-
Cash and cash equivalents were $212.2 million as of December 31, 2017,
compared to $197.9 million as of December 31, 2016. Outstanding bank
borrowings were $165.0 million as of December 31, 2017, compared to
$225.0 million as of December 31, 2016
-
Approximately 1.14 million shares of common stock were repurchased
during the second quarter of fiscal 2018
During the second quarter, Adtalem signed an agreement to transfer
ownership of DeVry University to Cogswell Education LLC. The agreement
is subject to certain terms and conditions to be met during the
transition process, including regulatory and accreditor approval, and
the transaction is anticipated to be completed in early fiscal year
2019. As a result of this transaction, DeVry University has been
classified as a discontinued operation. Adtalem recorded an after-tax
loss from discontinued operations of $25.4 million in the second
quarter, which includes $47.2 million of pre-tax charges related to
impairment of intangible and long-lived assets.
The fiscal 2018 second quarter results contained special items for
restructuring charges of $2.6 million (pre-tax) related to workforce
reductions and real estate consolidations at Carrington and Adtalem's
home office, and tax expense of $101.2 million related to adoption of
the Tax Cuts and Jobs Act of 2017.
Segment Highlights
Medical and Healthcare Segment
Second quarter segment revenue of $203.3 million increased 0.9 percent
compared to the prior year, with growth at Chamberlain University
partially offset by decreased revenue at the medical and veterinary
schools. Chamberlain revenue in the quarter increased 1.9 percent from
the prior year to $115.1 million, while revenue for the medical and
veterinary schools decreased 0.3 percent from the prior year to $88.2
million.
Second quarter operating income for the segment was $55.0 million,
representing an increase of 5.6 percent from the prior year.
American University of the Caribbean School of Medicine (AUC) reopened
its campus in St. Maarten in January, following repairs to address the
damage caused by Hurricane Irma. Ross University School of Medicine
(RUSM) in Dominica continues to assess the damage caused by Hurricane
Maria, and students have been temporarily relocated to Knoxville, Tenn.
at a campus owned by Lincoln Memorial University.
Additional expenses in the second quarter related to maintaining
alternative teaching sites for both AUC and RUSM and remediating the
property damage to the campuses in St. Maarten and Dominica were largely
offset by received and committed reimbursements under Adtalem's
insurance policies, after deductibles, which were met during the first
quarter.
Professional Education
Second quarter segment revenue increased 10.9 percent compared to the
prior year to $30.4 million, driven by growth from Association of
Certified Anti Money Laundering Specialists (ACAMS). Segment operating
income for the second quarter was $2.2 million, up from $0.1 million in
the prior year driven by revenue growth at ACAMS.
In the second quarter, ACAMS' revenue increased 62 percent with
particularly strong results coming from the Asia Pacific region, as well
as solid gains generated through expanding partnerships in Europe.
Technology and Business
Second quarter segment revenue increased 2.4 percent to $75.1 million
compared to the prior year. On a constant currency basis, revenue in the
segment grew 0.9 percent. Segment operating income in the second quarter
increased 3.8 percent over the prior year to $14.0 million as a result
of revenue growth and cost efficiencies.
US Traditional Postsecondary
Second quarter segment revenue declined 10.5 percent to $29.0 million
compared to the prior year. An operating loss of $5.8 million was
reported in the second quarter compared to an operating loss of $6.3
million in the prior year. Excluding special items, the segment reported
an operating loss of $4.7 million for the quarter, compared to an
operating loss of $3.9 million in the prior year.
Carrington showed improvement in new student enrollment in the quarter,
which was up 7.2 percent, highlighting the efforts to revise the
institution's program offerings and marketing efforts.
Adtalem Outlook
Fiscal 2018 third quarter revenue is expected to increase 3 to 4 percent
compared to the prior year. Revenue growth within the Medical and
Healthcare, Professional Education and Technology and Business segments
is expected to offset declining revenue within the US Traditional
Postsecondary segment. Third quarter operating costs before special
items are expected to increase 1 to 2 percent compared to the prior
year. Third quarter expenses may be impacted by the timing of the
receipt of insurance proceeds for the reimbursement of hurricane-related
expenses.
Fiscal 2018 full year revenue is expected to increase 1 to 2 percent
compared to the prior year and earnings growth from continuing
operations before special items is expected to be 10 to 12 percent
compared to the prior year. Full year capital spending is expected to be
in the $60 to $65 million range, excluding hurricane-related spending.
The effective income tax rate on continuing operations for the fiscal
year is expected to be in the range of 16 to 17 percent, before special
items. Adtalem's outlook excludes potential charges related to
restructuring plans and the pending sale of DeVry University.
Conference Call and Webcast Information
Adtalem will hold a conference call to discuss its fiscal 2018 second
quarter earnings on Tuesday, February 6, at 4 p.m. CST (5 p.m. EST). 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). Ask for the Adtalem call or
use conference ID: 13674998. Adtalem will also broadcast the conference
call on Adtalem's website at: http://www.investorcalendar.com/event/23549.
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 Mar. 6, 2018.
To access the replay, dial 877-660-6853 (domestic) or 201-612-7415
(international), conference ID: 13674998. To access the webcast replay,
please visit Adtalem's website at: http://www.investorcalendar.com/event/23549.
About Adtalem Global Education
The purpose of Adtalem Global Education 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,
Carrington College, Chamberlain University, DeVry University and its
Keller Graduate School of Management, 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 future performance, including those statements concerning
expectations or plans, may constitute forward-looking statements subject
to the Safe Harbor Provision of the Private Securities Litigation Reform
Act of 1995. These forward-looking statements generally can be
identified by phrases such as Adtalem Global Education or its management
"believes," "expects," "anticipates," "foresees," "forecasts,"
"estimates" or other words or phrases of similar import. Actual results
may differ materially from those projected or implied by these
forward-looking statements. Potential risks, uncertainties and other
factors that could cause results to differ are described more fully in
Item 1A, "Risk Factors," in the most recent Annual Report on Form 10-K
for the year ending June 30, 2017 and filed with the Securities and
Exchange Commission (SEC) on August 24, 2017 and its most recent
Quarterly Report on Form 10-Q for the quarter ending December 31, 2017
and filed with the SEC on February 6, 2018.
Enrollment from Continuing Operations
|
|
|
|
|
|
|
|
|
|
FY 2018
|
|
FY 2017
|
|
% Change
|
Adtalem Global Education Student Enrollments(1)
|
|
|
|
|
|
|
New students
|
|
6,528
|
|
6,084
|
|
+7.3%
|
Total students
|
|
121,255
|
|
118,424
|
|
+2.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chamberlain University
|
|
|
|
|
|
|
November Session(2)
|
|
|
|
|
|
|
New students
|
|
2,806
|
|
2,660
|
|
+5.5%
|
Total students
|
|
29,719
|
|
28,268
|
|
+5.1%
|
January Session
|
|
|
|
|
|
|
New students
|
|
4,472
|
|
4,185
|
|
+6.9%
|
Total students
|
|
31,333
|
|
29,789
|
|
+5.2%
|
|
|
|
|
|
|
|
Carrington College
|
|
|
|
|
|
|
3 months ending December 31, 2017
|
|
|
|
|
|
|
New students
|
|
1,541
|
|
1,437
|
|
+7.2%
|
Total students
|
|
5,644
|
|
5,910
|
|
-4.5%
|
|
|
|
|
|
|
|
Medical and Veterinary(3)
|
|
|
|
|
|
|
January Term
|
|
|
|
|
|
|
New students
|
|
515
|
|
462
|
|
+11.5%
|
Total students
|
|
5,938
|
|
5,863
|
|
+1.3%
|
Enrollment from Discontinued Operations
|
|
|
|
|
|
|
|
DeVry University
|
|
FY 2018
|
|
FY 2017
|
|
% Change
|
Undergraduate - November Session
|
|
|
|
|
|
|
New students
|
|
2,359
|
|
3,092
|
|
-23.7%
|
Total students
|
|
18,385
|
|
24,015
|
|
-23.4%
|
Undergraduate - January Session
|
|
|
|
|
|
|
New students
|
|
2,439
|
|
2,528
|
|
-3.5%
|
Total students
|
|
17,859
|
|
22,994
|
|
-22.3%
|
Graduate - November Session
|
|
|
|
|
|
|
Coursetakers(4)
|
|
7,488
|
|
9,589
|
|
-21.9%
|
Graduate - January Session
|
|
|
|
|
|
|
Coursetakers(4)
|
|
7,602
|
|
9,553
|
|
-20.4%
|
1) Includes the most recently reported enrollments at Adtalem's
postsecondary institutions, excluding DeVry University
2) Post-licensure online programs only; pre-licensure campus-based
programs start in September, January and May
3) Includes enrollments in its medical and veterinary preparatory
programs
4) The term "coursetaker" refers to the number of courses taken by a
student. Thus one student taking two courses equals two coursetakers
ADTALEM GLOBAL EDUCATION INC.
|
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
PRELIMINARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
ASSETS:
|
|
|
(in thousands, except share and par value amounts)
|
|
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents
|
|
$
|
212,239
|
|
|
$
|
240,426
|
|
|
$
|
197,860
|
|
|
|
Marketable Securities and Investments
|
|
|
4,268
|
|
|
|
4,013
|
|
|
|
3,844
|
|
|
|
Restricted Cash
|
|
|
566
|
|
|
|
4,759
|
|
|
|
5,622
|
|
|
|
Accounts Receivable, Net
|
|
|
148,638
|
|
|
|
161,405
|
|
|
|
127,941
|
|
|
|
Prepaid Expenses and Other
|
|
|
75,972
|
|
|
|
36,988
|
|
|
|
54,964
|
|
|
|
Current Assets Held for Sale
|
|
|
28,126
|
|
|
|
23,616
|
|
|
|
37,202
|
|
|
|
|
Total Current Assets
|
|
|
469,809
|
|
|
|
471,207
|
|
|
|
427,433
|
|
|
Land, Building and Equipment:
|
|
|
|
|
|
|
|
|
|
|
|
Land
|
|
|
46,918
|
|
|
|
48,947
|
|
|
|
48,595
|
|
|
|
Building
|
|
|
425,659
|
|
|
|
443,914
|
|
|
|
441,271
|
|
|
|
Equipment
|
|
|
365,394
|
|
|
|
352,622
|
|
|
|
361,608
|
|
|
|
Construction in Progress
|
|
|
26,520
|
|
|
|
22,240
|
|
|
|
15,380
|
|
|
|
|
|
|
|
864,491
|
|
|
|
867,723
|
|
|
|
866,854
|
|
|
|
Accumulated Depreciation
|
|
|
(446,152
|
)
|
|
|
(416,801
|
)
|
|
|
(406,295
|
)
|
|
|
Land, Building and Equipment Held for Sale, Net
|
|
|
-
|
|
|
|
37,904
|
|
|
|
39,967
|
|
|
|
|
Land, Building and Equipment, Net
|
|
|
418,339
|
|
|
|
488,826
|
|
|
|
500,526
|
|
|
Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Income Taxes, Net
|
|
|
31,090
|
|
|
|
33,772
|
|
|
|
26,618
|
|
|
|
Intangible Assets, Net
|
|
|
407,000
|
|
|
|
412,158
|
|
|
|
419,883
|
|
|
|
Goodwill
|
|
|
832,943
|
|
|
|
829,086
|
|
|
|
832,642
|
|
|
|
Other Assets, Net
|
|
|
38,091
|
|
|
|
40,696
|
|
|
|
56,227
|
|
|
|
Other Assets Held for Sale
|
|
|
13,450
|
|
|
|
38,290
|
|
|
|
38,104
|
|
|
|
|
Total Other Assets
|
|
|
1,322,574
|
|
|
|
1,354,002
|
|
|
|
1,373,474
|
|
TOTAL ASSETS
|
|
$
|
2,210,722
|
|
|
$
|
2,314,035
|
|
|
$
|
2,301,433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts Payable
|
|
$
|
37,818
|
|
|
$
|
46,417
|
|
|
$
|
32,119
|
|
|
|
Accrued Salaries, Wages and Benefits
|
|
|
63,417
|
|
|
|
81,661
|
|
|
|
64,680
|
|
|
|
Accrued Liabilities
|
|
|
77,891
|
|
|
|
90,306
|
|
|
|
94,938
|
|
|
|
Deferred Revenue
|
|
|
81,224
|
|
|
|
115,770
|
|
|
|
88,092
|
|
|
|
Current Liabilities Held for Sale
|
|
|
36,469
|
|
|
|
43,173
|
|
|
|
45,727
|
|
|
|
|
Total Current Liabilities
|
|
|
296,819
|
|
|
|
377,327
|
|
|
|
325,556
|
|
|
Other Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Revolving Loan
|
|
|
165,000
|
|
|
|
125,000
|
|
|
|
225,000
|
|
|
|
Deferred Income Taxes, Net
|
|
|
31,745
|
|
|
|
34,712
|
|
|
|
32,452
|
|
|
|
Deferred Rent and Other
|
|
|
101,232
|
|
|
|
101,672
|
|
|
|
106,792
|
|
|
|
Income Taxes Payable
|
|
|
88,562
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
Total Other Liabilities
|
|
|
386,539
|
|
|
|
261,384
|
|
|
|
364,244
|
|
TOTAL LIABILITIES
|
|
|
683,358
|
|
|
|
638,711
|
|
|
|
689,800
|
|
NONCONTROLLING INTEREST
|
|
|
7,405
|
|
|
|
6,285
|
|
|
|
6,720
|
|
SHAREHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
|
|
|
Common Stock, $0.01 Par Value, 200,000,000 Shares Authorized;
60,295,000,
|
|
|
|
|
|
|
|
|
|
|
|
62,371,000 and 62,776,000 Shares Outstanding at December 31, 2017,
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2017 and December 31, 2016, respectively
|
|
|
787
|
|
|
|
781
|
|
|
|
775
|
|
|
Additional Paid-in Capital
|
|
|
433,855
|
|
|
|
415,912
|
|
|
|
395,155
|
|
|
Retained Earnings
|
|
|
1,812,746
|
|
|
|
1,881,397
|
|
|
|
1,797,634
|
|
|
Accumulated Other Comprehensive Loss
|
|
|
(60,745
|
)
|
|
|
(59,119
|
)
|
|
|
(50,828
|
)
|
|
Treasury Stock, at Cost, 18,451,000, 15,691,000 and 14,762,000
Shares at
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017, June 30, 2017 and December 31, 2016, respectively
|
|
|
(666,684
|
)
|
|
|
(569,932
|
)
|
|
|
(537,823
|
)
|
TOTAL SHAREHOLDERS' EQUITY
|
|
|
1,519,959
|
|
|
|
1,669,039
|
|
|
|
1,604,913
|
|
TOTAL LIABILITIES, NONCONTROLLING INTEREST AND
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY
|
|
$
|
2,210,722
|
|
|
$
|
2,314,035
|
|
|
$
|
2,301,433
|
|
ADTALEM GLOBAL EDUCATION INC.
|
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
|
(Unaudited)
|
PRELIMINARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
(in thousands, except per share amounts)
|
REVENUE:
|
|
|
|
|
|
|
|
|
|
|
|
|
Tuition
|
$
|
302,184
|
|
|
$
|
301,263
|
|
|
$
|
582,207
|
|
|
$
|
588,161
|
|
|
Other Educational
|
|
35,060
|
|
|
|
32,695
|
|
|
|
80,315
|
|
|
|
74,824
|
|
|
|
Total Revenue
|
|
337,244
|
|
|
|
333,958
|
|
|
|
662,522
|
|
|
|
662,985
|
|
OPERATING COST AND EXPENSE:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Educational Services
|
|
178,970
|
|
|
|
179,148
|
|
|
|
374,911
|
|
|
|
366,634
|
|
|
Student Services and Administrative Expense
|
|
100,336
|
|
|
|
101,167
|
|
|
|
201,544
|
|
|
|
204,632
|
|
|
Restructuring Expense
|
|
2,554
|
|
|
|
2,963
|
|
|
|
4,941
|
|
|
|
6,313
|
|
|
Regulatory Settlements
|
|
-
|
|
|
|
52,150
|
|
|
|
-
|
|
|
|
52,150
|
|
|
|
Total Operating Cost and Expense
|
|
281,860
|
|
|
|
335,428
|
|
|
|
581,396
|
|
|
|
629,729
|
|
Operating Income (Loss) from Continuing Operations
|
|
55,384
|
|
|
|
(1,470
|
)
|
|
|
81,126
|
|
|
|
33,256
|
|
INTEREST:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
1,365
|
|
|
|
988
|
|
|
|
3,483
|
|
|
|
2,032
|
|
|
Interest Expense
|
|
(2,481
|
)
|
|
|
(2,300
|
)
|
|
|
(4,397
|
)
|
|
|
(4,415
|
)
|
|
|
Net Interest Expense
|
|
(1,116
|
)
|
|
|
(1,312
|
)
|
|
|
(914
|
)
|
|
|
(2,383
|
)
|
Income (Loss) from Continuing Operations Before Income Taxes
|
|
54,268
|
|
|
|
(2,782
|
)
|
|
|
80,212
|
|
|
|
30,873
|
|
Income Tax (Provision) Benefit
|
|
(109,636
|
)
|
|
|
10,082
|
|
|
|
(113,232
|
)
|
|
|
2,363
|
|
Equity Method Investment Income (Loss)
|
|
6
|
|
|
|
-
|
|
|
|
(38
|
)
|
|
|
-
|
|
(Loss) Income from Continuing Operations
|
|
(55,362
|
)
|
|
|
7,300
|
|
|
|
(33,058
|
)
|
|
|
33,236
|
|
DISCONTINUED OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from Discontinued Operations Before
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Taxes
|
|
(43,873
|
)
|
|
|
6,321
|
|
|
|
(55,179
|
)
|
|
|
4,716
|
|
|
Income Tax Benefit
|
|
18,453
|
|
|
|
1,134
|
|
|
|
20,371
|
|
|
|
1,952
|
|
|
(Loss) Income from Discontinued Operations
|
|
(25,420
|
)
|
|
|
7,455
|
|
|
|
(34,808
|
)
|
|
|
6,668
|
|
NET (LOSS) INCOME
|
|
(80,782
|
)
|
|
|
14,755
|
|
|
|
(67,866
|
)
|
|
|
39,904
|
|
|
Net Income Attributable to Noncontrolling Interest
|
|
(374
|
)
|
|
|
(342
|
)
|
|
|
(505
|
)
|
|
|
(339
|
)
|
NET (LOSS) INCOME ATTRIBUTABLE TO ADTALEM GLOBAL
|
|
|
|
|
|
|
|
|
|
|
|
|
EDUCATION
|
$
|
(81,156
|
)
|
|
$
|
14,413
|
|
|
$
|
(68,371
|
)
|
|
$
|
39,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMOUNTS ATTRIBUTABLE TO ADTALEM GLOBAL
|
|
|
|
|
|
|
|
|
|
|
|
|
EDUCATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from Continuing Operations
|
$
|
(55,736
|
)
|
|
$
|
6,958
|
|
|
$
|
(33,563
|
)
|
|
$
|
32,897
|
|
|
|
(Loss) Income from Discontinued Operations
|
|
(25,420
|
)
|
|
|
7,455
|
|
|
|
(34,808
|
)
|
|
|
6,668
|
|
NET (LOSS) INCOME ATTRIBUTABLE TO ADTALEM GLOBAL
|
|
|
|
|
|
|
|
|
|
|
|
|
EDUCATION
|
$
|
(81,156
|
)
|
|
$
|
14,413
|
|
|
$
|
(68,371
|
)
|
|
$
|
39,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) EARNINGS PER COMMON SHARE ATTRIBUTABLE
|
|
|
|
|
|
|
|
|
|
|
|
|
TO ADTALEM GLOBAL EDUCATION SHAREHOLDERS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations
|
$
|
(0.91
|
)
|
|
$
|
0.11
|
|
|
$
|
(0.54
|
)
|
|
$
|
0.52
|
|
|
|
|
Discontinued Operations
|
$
|
(0.42
|
)
|
|
$
|
0.12
|
|
|
$
|
(0.56
|
)
|
|
$
|
0.11
|
|
|
|
|
Total
|
$
|
(1.33
|
)
|
|
$
|
0.23
|
|
|
$
|
(1.10
|
)
|
|
$
|
0.62
|
|
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations
|
$
|
(0.91
|
)
|
|
$
|
0.11
|
|
|
$
|
(0.54
|
)
|
|
$
|
0.52
|
|
|
|
|
Discontinued Operations
|
$
|
(0.42
|
)
|
|
$
|
0.12
|
|
|
$
|
(0.56
|
)
|
|
$
|
0.10
|
|
|
|
|
Total
|
$
|
(1.33
|
)
|
|
$
|
0.23
|
|
|
$
|
(1.10
|
)
|
|
$
|
0.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Dividends Declared per Common Share
|
$
|
-
|
|
|
$
|
0.18
|
|
|
$
|
-
|
|
|
$
|
0.18
|
|
ADTALEM GLOBAL EDUCATION INC.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
PRELIMINARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
(in thousands)
|
CASH FLOW FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
Net (Loss) Income
|
$
|
(67,866
|
)
|
$
|
39,904
|
|
|
Loss (Income) from Discontinued Operations
|
|
34,808
|
|
|
(6,668
|
)
|
|
Adjustments to Reconcile Net (Loss) Income to Net Cash Provided by
Operating Activities:
|
|
|
|
|
|
|
Stock-Based Compensation Expense
|
|
8,780
|
|
|
9,333
|
|
|
|
Depreciation
|
|
24,865
|
|
|
26,043
|
|
|
|
Amortization
|
|
5,311
|
|
|
6,047
|
|
|
|
Provision for Refunds and Uncollectible Accounts
|
|
20,305
|
|
|
20,111
|
|
|
|
Deferred Income Taxes
|
|
1,258
|
|
|
10,730
|
|
|
|
Loss on Disposals, Accelerated Depreciation and Adjustments to Land,
Building and Equipment
|
|
30,201
|
|
|
3,229
|
|
|
|
Changes in Assets and Liabilities:
|
|
|
|
|
|
|
|
Accounts Receivable
|
|
(7,150
|
)
|
|
(9,094
|
)
|
|
|
|
Prepaid Expenses and Other
|
|
(30,810
|
)
|
|
(34,805
|
)
|
|
|
|
Accounts Payable
|
|
(2,569
|
)
|
|
(8,200
|
)
|
|
|
|
Accrued Salaries, Wages, Benefits and Liabilities
|
|
(28,204
|
)
|
|
(993
|
)
|
|
|
|
Deferred Revenue
|
|
(34,570
|
)
|
|
(19,255
|
)
|
|
|
|
Income Taxes Payable, Long-Term
|
|
88,562
|
|
|
-
|
|
|
Net Cash Provided by Operating Activities-Continuing Operations
|
|
42,921
|
|
|
36,382
|
|
|
Net Cash Provided by Operating Activities-Discontinued Operations
|
|
6,692
|
|
|
5,096
|
|
|
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
|
49,613
|
|
|
41,478
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
Capital Expenditures
|
|
(32,594
|
)
|
|
(18,771
|
)
|
|
Payment for Purchase of Businesses, Net of Cash Acquired
|
|
(972
|
)
|
|
(330,567
|
)
|
|
Marketable Securities Purchased
|
|
(136
|
)
|
|
(73
|
)
|
|
Net Cash Used in Investing Activities-Continuing Operations
|
|
(33,702
|
)
|
|
(349,411
|
)
|
|
Net Cash Provided by (Used in) Investing Activities-Discontinued
Operations
|
|
8,575
|
|
|
(1,635
|
)
|
|
NET CASH USED IN INVESTING ACTIVITIES
|
|
(25,127
|
)
|
|
(351,046
|
)
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
Proceeds from Exercise of Stock Options
|
|
9,582
|
|
|
13,784
|
|
|
Employee Taxes Paid on Withholding Shares
|
|
(3,806
|
)
|
|
(2,650
|
)
|
|
Proceeds from Stock Issued Under Colleague Stock Purchase Plan
|
|
391
|
|
|
439
|
|
|
Repurchase of Common Stock for Treasury
|
|
(93,178
|
)
|
|
(16,381
|
)
|
|
Cash Dividends Paid
|
|
-
|
|
|
(11,412
|
)
|
|
Payments of Seller Financed Obligations
|
|
(7,941
|
)
|
|
(3,518
|
)
|
|
Borrowings Under Revolving Credit Facility
|
|
201,000
|
|
|
405,000
|
|
|
Repayments Under Revolving Credit Facility
|
|
(161,000
|
)
|
|
(180,000
|
)
|
|
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES
|
|
(54,952
|
)
|
|
205,262
|
|
Effects of Exchange Rate Differences
|
|
(1,043
|
)
|
|
(4
|
)
|
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
|
(31,509
|
)
|
|
(104,310
|
)
|
Cash, Cash Equivalents and Restricted Cash at Beginning of Period
|
|
251,096
|
|
|
315,347
|
|
Cash, Cash Equivalents and Restricted Cash at End of Period
|
|
219,587
|
|
|
211,037
|
|
Less: Cash, Cash Equivalents and Restricted Cash of Discontinued
Operations at End of Period
|
|
6,782
|
|
|
7,555
|
|
Cash, Cash Equivalents and Restricted Cash at End of Period
|
$
|
212,805
|
|
$
|
203,482
|
|
ADTALEM GLOBAL EDUCATION INC.
|
SEGMENT INFORMATION
|
(Unaudited)
|
PRELIMINARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
(Decrease)
|
|
|
2017
|
|
|
|
2016
|
|
|
|
(Decrease)
|
REVENUE:
|
|
|
(in thousands)
|
|
Medical and Healthcare
|
|
$
|
203,297
|
|
|
$
|
201,409
|
|
|
|
0.9
|
%
|
|
$
|
394,582
|
|
|
$
|
401,178
|
|
|
|
(1.6
|
)%
|
|
Professional Education
|
|
|
30,359
|
|
|
|
27,366
|
|
|
|
10.9
|
%
|
|
|
70,401
|
|
|
|
62,096
|
|
|
|
13.4
|
%
|
|
Technology and Business
|
|
|
75,133
|
|
|
|
73,387
|
|
|
|
2.4
|
%
|
|
|
137,572
|
|
|
|
131,627
|
|
|
|
4.5
|
%
|
|
U.S. Traditional Postsecondary
|
|
|
29,033
|
|
|
|
32,445
|
|
|
|
(10.5
|
)%
|
|
|
61,168
|
|
|
|
69,431
|
|
|
|
(11.9
|
)%
|
|
Home Office and Other
|
|
|
(578
|
)
|
|
|
(649
|
)
|
|
|
10.9
|
%
|
|
|
(1,201
|
)
|
|
|
(1,347
|
)
|
|
|
10.8
|
%
|
|
Total Consolidated Revenue
|
|
|
337,244
|
|
|
|
333,958
|
|
|
|
1.0
|
%
|
|
|
662,522
|
|
|
|
662,985
|
|
|
|
(0.1
|
)%
|
OPERATING INCOME (LOSS):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical and Healthcare
|
|
|
55,047
|
|
|
|
52,152
|
|
|
|
5.6
|
%
|
|
|
81,279
|
|
|
|
96,016
|
|
|
|
(15.3
|
)%
|
|
Professional Education
|
|
|
2,193
|
|
|
|
134
|
|
|
|
1,536.6
|
%
|
|
|
12,700
|
|
|
|
6,191
|
|
|
|
105.1
|
%
|
|
Technology and Business
|
|
|
13,991
|
|
|
|
13,482
|
|
|
|
3.8
|
%
|
|
|
15,852
|
|
|
|
11,506
|
|
|
|
37.8
|
%
|
|
U.S. Traditional Postsecondary
|
|
|
(5,779
|
)
|
|
|
(6,281
|
)
|
|
|
8.0
|
%
|
|
|
(11,293
|
)
|
|
|
(8,301
|
)
|
|
|
(36.0
|
)%
|
|
Home Office and Other
|
|
|
(10,068
|
)
|
|
|
(60,957
|
)
|
|
|
83.5
|
%
|
|
|
(17,412
|
)
|
|
|
(72,156
|
)
|
|
|
75.9
|
%
|
|
Total Consolidated Operating Income (Loss)
|
|
$
|
55,384
|
|
|
$
|
(1,470
|
)
|
|
|
NM
|
|
|
$
|
81,126
|
|
|
$
|
33,256
|
|
|
|
143.9
|
%
|
NON-GAAP INFORMATION
During the second quarter and first six months of fiscal year
2018, Adtalem classified the operating results of DeVry University
as discontinued operations, and recorded special items related to
the following: (i) Restructuring charges primarily related to
workforce reductions and real estate consolidations at Carrington
College ("Carrington"), which is part of the U.S. Traditional
Postsecondary segment, and Adtalem's home office (not related to
any segment); and (ii) Income tax charges related to
implementation of the Tax Cuts and Jobs Act of 2017. During the
second quarter and first six months of fiscal year 2017, Adtalem
recorded special items related to the following: (i) Restructuring
charges primarily related to real estate consolidations at
Carrington and Adtalem's home office in order to align its cost
structure with enrollments; and (ii) Charges related to regulatory
settlement agreements. In addition, in accordance with U.S.
Generally Accepted Accounting Principles ("GAAP"), the operating
results of DeVry University are reclassified as discontinued
operations for the second quarter and first six months of fiscal
year 2017. The following tables illustrate the effects of the
discontinued operations and special items on Adtalem's operating
income and net income. Management believes that the non-GAAP
disclosure of operating income and net income 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 and regulatory settlements. 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):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
(Decrease)
|
|
|
2017
|
|
|
|
2016
|
|
|
(Decrease)
|
Medical and Healthcare Operating Income
|
|
$
|
55,047
|
|
|
$
|
52,152
|
|
|
5.6
|
%
|
|
$
|
81,279
|
|
|
$
|
96,016
|
|
|
(15.3
|
)%
|
|
Restructuring Expense
|
|
|
-
|
|
|
|
-
|
|
|
NM
|
|
|
|
112
|
|
|
|
-
|
|
|
NM
|
|
Medical and Healthcare Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding Special Items
|
|
$
|
55,047
|
|
|
$
|
52,152
|
|
|
5.6
|
%
|
|
$
|
81,391
|
|
|
$
|
96,016
|
|
|
(15.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Traditional Postsecondary Operating Loss
|
|
$
|
(5,779
|
)
|
|
$
|
(6,281
|
)
|
|
8.0
|
%
|
|
$
|
(11,293
|
)
|
|
$
|
(8,301
|
)
|
|
(36.0
|
)%
|
|
Restructuring Expense
|
|
|
1,128
|
|
|
|
2,335
|
|
|
(51.7
|
)%
|
|
|
2,378
|
|
|
|
3,703
|
|
|
(35.8
|
)%
|
U.S. Traditional Postsecondary Operating Loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding Special Items
|
|
$
|
(4,651
|
)
|
|
$
|
(3,946
|
)
|
|
(17.9
|
)%
|
|
$
|
(8,915
|
)
|
|
$
|
(4,598
|
)
|
|
(93.9
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home Office and Other Operating Loss
|
|
$
|
(10,068
|
)
|
|
$
|
(60,957
|
)
|
|
83.5
|
%
|
|
$
|
(17,412
|
)
|
|
$
|
(72,156
|
)
|
|
75.9
|
%
|
|
Restructuring Expense
|
|
|
1,426
|
|
|
|
628
|
|
|
127.1
|
%
|
|
|
2,451
|
|
|
|
2,610
|
|
|
(6.1
|
)%
|
|
Regulatory Settlement
|
|
|
-
|
|
|
|
52,150
|
|
|
NM
|
|
|
|
-
|
|
|
|
52,150
|
|
|
NM
|
|
Home Office and Other Operating Loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding Special Items
|
|
$
|
(8,642
|
)
|
|
$
|
(8,179
|
)
|
|
(5.7
|
)%
|
|
$
|
(14,961
|
)
|
|
$
|
(17,396
|
)
|
|
14.0
|
%
|
ADTALEM GLOBAL EDUCATION INC.
|
NON-GAAP EARNINGS DISCLOSURE
|
(Unaudited)
|
PRELIMINARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
(in thousands, except per share amounts)
|
Net (Loss) Income
|
|
$
|
(81,156
|
)
|
|
$
|
14,413
|
|
|
$
|
(68,371
|
)
|
|
$
|
39,565
|
|
|
(Loss) Earnings per Share (basic-2017, diluted-2016)
|
|
$
|
(1.33
|
)
|
|
$
|
0.23
|
|
|
$
|
(1.10
|
)
|
|
$
|
0.62
|
|
Continuing Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring Expense
|
|
$
|
2,554
|
|
|
$
|
2,963
|
|
|
$
|
4,941
|
|
|
$
|
6,313
|
|
|
|
Effect on Earnings per Share (diluted)
|
|
$
|
0.04
|
|
|
$
|
0.05
|
|
|
$
|
0.08
|
|
|
$
|
0.10
|
|
|
Tax Cuts and Jobs Act of 2017
|
|
$
|
101,196
|
|
|
$
|
-
|
|
|
$
|
101,196
|
|
|
$
|
-
|
|
|
|
Effect on Earnings per Share (diluted)
|
|
$
|
1.63
|
|
|
$
|
-
|
|
|
$
|
1.61
|
|
|
$
|
-
|
|
|
Regulatory Settlements
|
|
$
|
-
|
|
|
$
|
52,150
|
|
|
$
|
-
|
|
|
$
|
52,150
|
|
|
|
Effect on Earnings per Share (diluted)
|
|
$
|
-
|
|
|
$
|
0.81
|
|
|
$
|
-
|
|
|
$
|
0.82
|
|
|
Income Tax Impact on Non-GAAP Adjustments
|
|
$
|
(695
|
)
|
|
$
|
(20,938
|
)
|
|
$
|
(1,284
|
)
|
|
$
|
(21,856
|
)
|
|
|
Effect on Earnings per Share (diluted)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.33
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.34
|
)
|
Discontinued Operations, net of tax
|
|
$
|
25,420
|
|
|
$
|
(7,455
|
)
|
|
$
|
34,808
|
|
|
$
|
(6,668
|
)
|
|
Effect on Earnings per Share (diluted)
|
|
$
|
0.41
|
|
|
$
|
(0.12
|
)
|
|
$
|
0.56
|
|
|
$
|
(0.10
|
)
|
Net Income from Continuing Operations Excluding Special
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items, net of tax
|
|
$
|
47,319
|
|
|
$
|
41,133
|
|
|
$
|
71,290
|
|
|
$
|
69,504
|
|
|
|
Earnings per Share from Continuing Operations Excluding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items, net of tax
|
|
$
|
0.76
|
|
|
$
|
0.64
|
|
|
$
|
1.14
|
|
|
$
|
1.09
|
|
Shares used in EPS calculation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
61,234
|
|
|
|
NA
|
|
|
|
62,009
|
|
|
|
NA
|
|
|
Diluted
|
|
|
62,023
|
|
|
|
64,028
|
|
|
|
62,705
|
|
|
|
63,871
|
|
SUPPLEMENTAL RECONCILIATIONS
|
(Unaudited)
|
PRELIMINARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2017
|
|
|
|
|
|
(in thousands)
|
|
|
|
Medical
|
|
|
|
|
|
Technology
|
|
|
U.S.
|
|
|
Home Office
|
|
|
|
|
|
|
and
|
|
|
Professional
|
|
|
and
|
|
|
Traditional
|
|
|
and
|
|
|
|
Revenue:
|
|
|
Healthcare
|
|
|
Education
|
|
|
Business
|
|
|
Postsecondary
|
|
|
Other
|
|
|
Consolidated
|
Fiscal Year 2017 as Reported
|
|
$
|
201,409
|
|
|
$
|
27,366
|
|
|
$
|
73,387
|
|
|
$
|
32,445
|
|
|
$
|
(649
|
)
|
|
$
|
333,958
|
|
Organic Growth (Decline)
|
|
|
2,780
|
|
|
|
2,993
|
|
|
|
438
|
|
|
|
(3,412
|
)
|
|
|
71
|
|
|
|
2,870
|
|
Effect of Acquisitions
|
|
|
-
|
|
|
|
-
|
|
|
|
218
|
|
|
|
-
|
|
|
|
-
|
|
|
|
218
|
|
Hurricane Impact
|
|
|
(892
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(892
|
)
|
Effect of Currency Change
|
|
|
-
|
|
|
|
-
|
|
|
|
1,090
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,090
|
|
Fiscal Year 2018 as Reported
|
|
$
|
203,297
|
|
|
$
|
30,359
|
|
|
$
|
75,133
|
|
|
$
|
29,033
|
|
|
$
|
(578
|
)
|
|
$
|
337,244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year 2018 % Change:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Growth (Decline)
|
|
|
1.4
|
%
|
|
|
10.9
|
%
|
|
|
0.6
|
%
|
|
|
(10.5
|
%)
|
|
|
NM
|
|
|
|
0.9
|
%
|
Effect of Acquisitions
|
|
|
-
|
|
|
|
-
|
|
|
|
0.3
|
%
|
|
|
-
|
|
|
|
NM
|
|
|
|
0.1
|
%
|
Constant Currency Change
|
|
|
1.4
|
%
|
|
|
10.9
|
%
|
|
|
0.9
|
%
|
|
|
(10.5
|
%)
|
|
|
NM
|
|
|
|
0.9
|
%
|
Hurricane Impact
|
|
|
(0.4
|
%)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
NM
|
|
|
|
(0.3
|
%)
|
Effect of Currency Change
|
|
|
-
|
|
|
|
-
|
|
|
|
1.5
|
%
|
|
|
-
|
|
|
|
NM
|
|
|
|
0.3
|
%
|
Fiscal Year 2018 % Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
as Reported
|
|
|
0.9
|
%
|
|
|
10.9
|
%
|
|
|
2.4
|
%
|
|
|
(10.5
|
%)
|
|
|
NM
|
|
|
|
1.0
|
%
|
|
|
|
|
|
Six Months Ended December 31, 2017
|
|
|
|
|
|
(in thousands)
|
|
|
|
Medical
|
|
|
|
|
|
Technology
|
|
|
U.S.
|
|
|
Home Office
|
|
|
|
|
|
|
and
|
|
|
Professional
|
|
|
and
|
|
|
Traditional
|
|
|
and
|
|
|
|
Revenue:
|
|
|
Healthcare
|
|
|
Education
|
|
|
Business
|
|
|
Postsecondary
|
|
|
Other
|
|
|
Consolidated
|
Fiscal Year 2017 as Reported
|
|
$
|
401,178
|
|
|
$
|
62,096
|
|
|
$
|
131,627
|
|
|
$
|
69,431
|
|
|
$
|
(1,347
|
)
|
|
$
|
662,985
|
|
Organic Growth (Decline)
|
|
|
1,640
|
|
|
|
8,305
|
|
|
|
2,948
|
|
|
|
(8,263
|
)
|
|
|
146
|
|
|
|
4,776
|
|
Effect of Acquisitions
|
|
|
-
|
|
|
|
-
|
|
|
|
218
|
|
|
|
-
|
|
|
|
-
|
|
|
|
218
|
|
Hurricane Impact
|
|
|
(8,236
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(8,236
|
)
|
Effect of Currency Change
|
|
|
-
|
|
|
|
-
|
|
|
|
2,779
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,779
|
|
Fiscal Year 2018 as Reported
|
|
$
|
394,582
|
|
|
$
|
70,401
|
|
|
$
|
137,572
|
|
|
$
|
61,168
|
|
|
$
|
(1,201
|
)
|
|
$
|
662,522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year 2018 % Change:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Growth (Decline)
|
|
|
0.4
|
%
|
|
|
13.4
|
%
|
|
|
2.2
|
%
|
|
|
(11.9
|
%)
|
|
|
NM
|
|
|
|
0.7
|
%
|
Effect of Acquisitions
|
|
|
-
|
|
|
|
-
|
|
|
|
0.2
|
%
|
|
|
-
|
|
|
|
NM
|
|
|
|
0.0
|
%
|
Constant Currency Change
|
|
|
0.4
|
%
|
|
|
13.4
|
%
|
|
|
2.4
|
%
|
|
|
(11.9
|
%)
|
|
|
NM
|
|
|
|
0.8
|
%
|
Hurricane Impact
|
|
|
(2.1
|
%)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
NM
|
|
|
|
(1.2
|
%)
|
Effect of Currency Change
|
|
|
-
|
|
|
|
-
|
|
|
|
2.1
|
%
|
|
|
-
|
|
|
|
NM
|
|
|
|
0.4
|
%
|
Fiscal Year 2018 % Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
as Reported
|
|
|
(1.6
|
%)
|
|
|
13.4
|
%
|
|
|
4.5
|
%
|
|
|
(11.9
|
%)
|
|
|
NM
|
|
|
|
(0.1
|
%)
|
SUPPLEMENTAL RECONCILIATIONS
|
(Unaudited)
|
PRELIMINARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2017
|
|
|
|
|
|
(in thousands)
|
|
|
|
Medical
|
|
|
|
|
|
Technology
|
|
|
U.S.
|
|
|
Home Office
|
|
|
|
|
|
|
and
|
|
|
Professional
|
|
|
and
|
|
|
Traditional
|
|
|
and
|
|
|
|
Total Expenses:
|
|
|
Healthcare
|
|
|
Education
|
|
|
Business
|
|
|
Postsecondary
|
|
|
Other
|
|
|
Consolidated
|
Fiscal Year 2017 as Reported
|
|
$
|
149,257
|
|
|
$
|
27,232
|
|
|
$
|
59,904
|
|
|
$
|
38,727
|
|
|
$
|
60,308
|
|
|
$
|
335,428
|
|
Cost (Reduction) Investment
|
|
|
(1,253
|
)
|
|
|
934
|
|
|
|
237
|
|
|
|
(2,708
|
)
|
|
|
535
|
|
|
|
(2,255
|
)
|
Effect of Acquisitions
|
|
|
-
|
|
|
|
-
|
|
|
|
151
|
|
|
|
-
|
|
|
|
-
|
|
|
|
151
|
|
Hurricane Impact
|
|
|
245
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
245
|
|
Restructuring Expense Change
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,207
|
)
|
|
|
798
|
|
|
|
(409
|
)
|
Regulatory Settlement Change
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(52,150
|
)
|
|
|
(52,150
|
)
|
Effect of Currency Change
|
|
|
-
|
|
|
|
-
|
|
|
|
850
|
|
|
|
-
|
|
|
|
-
|
|
|
|
850
|
|
Fiscal Year 2018 as Reported
|
|
$
|
148,249
|
|
|
$
|
28,166
|
|
|
$
|
61,142
|
|
|
$
|
34,812
|
|
|
$
|
9,491
|
|
|
$
|
281,860
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year 2018 % Change:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost (Reduction) Investment
|
|
|
(0.8
|
%)
|
|
|
3.4
|
%
|
|
|
0.4
|
%
|
|
|
(7.0
|
%)
|
|
|
NM
|
|
|
|
(0.7
|
%)
|
Effect of Acquisitions
|
|
|
-
|
|
|
|
-
|
|
|
|
0.3
|
%
|
|
|
-
|
|
|
|
NM
|
|
|
|
0.0
|
%
|
Constant Currency Change
|
|
|
(0.8
|
%)
|
|
|
3.4
|
%
|
|
|
0.6
|
%
|
|
|
(7.0
|
%)
|
|
|
NM
|
|
|
|
(0.6
|
%)
|
Hurricane Impact
|
|
|
0.2
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
NM
|
|
|
|
0.1
|
%
|
Restructuring Expense Change
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3.1
|
%)
|
|
|
NM
|
|
|
|
(0.1
|
%)
|
Regulatory Settlement Change
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
NM
|
|
|
|
(15.5
|
%)
|
Effect of Currency Change
|
|
|
-
|
|
|
|
-
|
|
|
|
1.4
|
%
|
|
|
-
|
|
|
|
NM
|
|
|
|
0.3
|
%
|
Fiscal Year 2018 % Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
as Reported
|
|
|
(0.7
|
%)
|
|
|
3.4
|
%
|
|
|
2.1
|
%
|
|
|
(10.1
|
%)
|
|
|
NM
|
|
|
|
(16.0
|
%)
|
|
|
|
|
|
Six Months Ended December 31, 2017
|
|
|
|
|
|
(in thousands)
|
|
|
|
Medical
|
|
|
|
|
|
Technology
|
|
|
U.S.
|
|
|
Home Office
|
|
|
|
|
|
|
and
|
|
|
Professional
|
|
|
and
|
|
|
Traditional
|
|
|
and
|
|
|
|
Total Expenses:
|
|
|
Healthcare
|
|
|
Education
|
|
|
Business
|
|
|
Postsecondary
|
|
|
Other
|
|
|
Consolidated
|
Fiscal Year 2017 as Reported
|
|
$
|
305,163
|
|
|
$
|
55,905
|
|
|
$
|
120,120
|
|
|
$
|
77,732
|
|
|
$
|
70,809
|
|
|
$
|
629,729
|
|
Cost (Reduction) Investment
|
|
|
(5,344
|
)
|
|
|
1,796
|
|
|
|
(865
|
)
|
|
|
(3,946
|
)
|
|
|
(2,289
|
)
|
|
|
(10,648
|
)
|
Effect of Acquisitions
|
|
|
-
|
|
|
|
-
|
|
|
|
151
|
|
|
|
-
|
|
|
|
-
|
|
|
|
151
|
|
Hurricane Impact
|
|
|
13,372
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
13,372
|
|
Restructuring Expense Change
|
|
|
112
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,325
|
)
|
|
|
(159
|
)
|
|
|
(1,372
|
)
|
Regulatory Settlement Change
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(52,150
|
)
|
|
|
(52,150
|
)
|
Effect of Currency Change
|
|
|
-
|
|
|
|
-
|
|
|
|
2,314
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,314
|
|
Fiscal Year 2018 as Reported
|
|
$
|
313,303
|
|
|
$
|
57,701
|
|
|
$
|
121,720
|
|
|
$
|
72,461
|
|
|
$
|
16,211
|
|
|
$
|
581,396
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year 2018 % Change:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost (Reduction) Investment
|
|
|
(1.8
|
%)
|
|
|
3.2
|
%
|
|
|
(0.7
|
%)
|
|
|
(5.1
|
%)
|
|
|
NM
|
|
|
|
(1.7
|
%)
|
Effect of Acquisitions
|
|
|
-
|
|
|
|
-
|
|
|
|
0.1
|
%
|
|
|
-
|
|
|
|
NM
|
|
|
|
0.0
|
%
|
Constant Currency Change
|
|
|
(1.8
|
%)
|
|
|
3.2
|
%
|
|
|
(0.6
|
%)
|
|
|
(5.1
|
%)
|
|
|
NM
|
|
|
|
(1.7
|
%)
|
Hurricane Impact
|
|
|
4.4
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
NM
|
|
|
|
2.1
|
%
|
Restructuring Expense Change
|
|
|
0.0
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
(1.7
|
%)
|
|
|
NM
|
|
|
|
(0.2
|
%)
|
Regulatory Settlement Change
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
NM
|
|
|
|
(8.3
|
%)
|
Effect of Currency Change
|
|
|
-
|
|
|
|
-
|
|
|
|
1.9
|
%
|
|
|
-
|
|
|
|
NM
|
|
|
|
0.4
|
%
|
Fiscal Year 2018 % Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
as Reported
|
|
|
2.7
|
%
|
|
|
3.2
|
%
|
|
|
1.3
|
%
|
|
|
(6.8
|
%)
|
|
|
NM
|
|
|
|
(7.7
|
%)
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20180206006217/en/
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