Adtalem Global Education Inc. reported significant financial growth for the first quarter of fiscal year 2025, ending September 30, 2024. The company achieved total consolidated revenue of $417.4 million, marking a 13.2% increase from $368.8 million in the same period of the previous year. This growth was driven by strong performance across its segments, particularly Chamberlain and Walden, which saw revenue increases of 17.8% and 14.1%, respectively.
Operating income surged to $70.2 million, a substantial rise of 149.1% compared to $28.2 million in Q1 FY 2024. Income from continuing operations before income taxes also saw a notable increase, reaching $58.4 million, up from $14.8 million in the prior year. Net income for the quarter was reported at $46.2 million, a remarkable 333.6% increase from $10.6 million in Q1 FY 2024. Diluted earnings per share rose to $1.18, compared to $0.25 in the same quarter last year.
The company’s total current assets increased to $516.9 million as of September 30, 2024, up from $418.1 million at the end of June 2024. Cash and cash equivalents also rose to $264.8 million, reflecting a solid liquidity position. However, total liabilities increased to $1.4 billion from $1.37 billion, primarily due to higher deferred revenue, which rose to $290.6 million from $185.3 million.
Adtalem's strategic initiatives included a focus on enrollment growth, with Chamberlain reporting a 12.1% increase in total student enrollment for the July 2024 and September 2024 sessions. Walden also experienced a 12.2% increase in enrollment compared to the previous year. The Medical and Veterinary segment saw a slight decline of 0.7% in enrollment.
The company undertook restructuring efforts, resulting in a restructuring expense of $2.1 million, primarily due to workforce reductions and exiting certain course offerings. Notably, there were no business integration expenses in Q1 FY 2025, contrasting with $5.3 million incurred in the same quarter of the previous year.
Adtalem's financial health is further supported by its ongoing share repurchase program, with $177.7 million remaining under the current authorization. The company continues to navigate regulatory requirements related to federal financial aid, maintaining compliance with the Total Net Leverage Ratio as of September 30, 2024.
About Adtalem Global Education Inc.
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