Adtalem Global Education (ATGE) 8-K Adtalem Global Education Announces First Quarter Fiscal 2019 Results

Exhibit 99.1

Adtalem Global Education Announces First Quarter Fiscal 2019 Results

New Student Enrollment up 19.7% and Total Enrollment up 3.6%

CHICAGO--(BUSINESS WIRE)--November 1, 2018--Adtalem Global Education Inc. (NYSE: ATGE), a leading global education provider, today reported academic, operating and financial results for its first quarter fiscal 2019 ended September 30, 2018.

“Fiscal year 2019 is off to a good start as we delivered solid new student enrollment growth,” said Lisa Wardell, president and CEO of Adtalem. “We are focused on growth opportunities in and across our verticals, while maintaining an operational focus through our portfolio management approach and effective cost management. Our short and long-term priorities are aligned to support our students in the achievement of outstanding outcomes, while delivering sustainable revenue and EPS growth over the long term.”

Financial and Operating Highlights

Selected operating and financial data for the three months ended September 30, 2018:

• Adtalem new student enrollment increased 19.7 percent and total student enrollment increased 3.6 percent from the prior year
• Revenue of $284.2 million decreased 3.1 percent compared to the prior year
• Operating loss from continuing operations was $2.5 million compared to operating income from continuing operations of $29.9 million in the prior year; operating income from continuing operations excluding special items was $37.0 million compared to $31.0 million in the prior year
• Net loss was $9.5 million compared to net income of $12.8 million in the prior year; net income from continuing operations excluding special items was $27.3 million compared to $26.2 million in the prior year
• Diluted loss per share was $0.16 compared to earnings per share of $0.20 in the prior year; diluted earnings per share from continuing operations excluding special items was $0.45 compared to $0.41 in the prior year
• Approximately 1.2 million shares of common stock were repurchased during the first quarter of fiscal 2019 at an average purchase price of $47.94 for a total of $59.2 million

Fiscal 2019 first quarter results contained total pre-tax restructuring charges of $39.5 million, of which $37.8 million were non-cash charges, primarily related to the closing of the Ross University School of Medicine (RUSM) campus in Dominica and relocating to Barbados.

Adtalem signed agreements to transfer ownership of DeVry University and Carrington College during the second and fourth quarter of fiscal 2018, respectively. Both divestitures are expected to be completed by calendar year end 2018 and are subject to certain terms and conditions, including regulatory and accreditor approval. As a result of these transactions, DeVry University and Carrington College are classified as discontinued operations. Adtalem recorded an after-tax loss from discontinued operations of $4.7 million in the first quarter of fiscal 2019.

Segment Highlights

Medical and Healthcare

First quarter segment revenue increased 5.7 percent to $202.1 million compared to the prior year. Chamberlain revenue was essentially flat at $113.7 million in the first quarter compared to the prior year. New student enrollment increased 9.5 percent and total student enrollment increased 4.1 percent in the September 2018 session compared to the prior year. Revenue in the quarter for the medical and veterinary schools increased 14.3 percent from the prior year to $88.4 million, driven by enrollment increases and the hurricane impact in the prior year first quarter. New student enrollment increased 9.5 percent and total student enrollment increased 2.5 percent in the September 2018 semester compared to the same semester last year. Segment operating income in the first quarter was $1.7 million compared to $26.2 million in the prior year. Excluding special items, segment operating income in the first quarter was $40.7 million compared to $26.3 million in the prior year.

Professional Education

First quarter segment revenue decreased 11.0 percent to $35.6 million compared to the prior year. Segment operating income was $4.8 million compared to $10.5 million in the prior year. The decreases were primarily a result of a planned shift to hold the Association of Certified Anti-Money Laundering Specialists (ACAMS) North American annual conference in the second quarter of fiscal 2019 as compared to being held in the first quarter of fiscal 2018.

Technology and Business

First quarter segment revenue decreased 24.3 percent to $47.3 million compared to the prior year. On a constant currency basis, revenue decreased 4.2 percent compared to the prior year due to higher discounting to counter increased competition and reductions in government financial aid funding. New student enrollment increased 23.8 percent, and increased 9.4 percent excluding Wyden Online distance learning, while total enrollment was up 3.5 percent compared to the same term last year, and increased 0.7 percent excluding Wyden Online. Segment operating loss in the first quarter was $2.7 million compared to operating income of $1.9 million in the prior year.

Adtalem Outlook

Fiscal 2019 second quarter revenue is expected to increase approximately 3 to 4 percent compared to the prior year. Second quarter operating costs before special items are expected to be up 5 to 6 percent compared to the prior year. The second quarter outlook assumes an exchange rate of 3.75 Brazilian Real to the U.S. Dollar.

Fiscal 2019 full year revenue is expected to increase approximately 4 percent compared to the prior year. The effective income tax rate is expected to be in the 17 to 18 percent range. Earnings per share from continuing operations before 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 3.70 Brazilian Real to the U.S. Dollar. Full year capital spending is expected to be in the $70 to $75 million range, including approximately $25 to $30 million for the relocation of RUSM to Barbados. Adtalem’s outlook excludes potential charges related to restructuring plans and the pending ownership transfer of DeVry University and Carrington College.

Conference Call and Webcast Information

Adtalem will hold a conference call to discuss its first quarter fiscal 2019 earnings on Thursday, November 1, 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: 13684548. Adtalem will also broadcast the conference call on Adtalem's website at: http://www.investorcalendar.com/event/39722.

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 December 1, 2019. To access the replay, dial 877-660-6853 (domestic) or 201-612-7415 (international), conference ID: 13684548. To access the webcast replay, please visit Adtalem's website at: http://www.investorcalendar.com/event/39722.

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, Carrington College, Chamberlain University, DeVry University and its Keller Graduate School of Management, 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. 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,” “estimates,” “potential,” “continue,” “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. 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, 2018 filed with the Securities and Exchange Commission (SEC) on August 24, 2018. Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Enrollment from Continuing Operations
	FY 2019	FY 2018	% Change
Adtalem Global Education Student Enrollments(1)
New students	24,280	20,281	+19.7%
Total students	118,270	114,146	+3.6%
Chamberlain University
September Session
New students	5,435	4,962	+9.5%
Total students	31,295	30,062	+4.1%
July Session
New students(2)	2,523	2,497	+1.0%
Total students	28,037	26,811	+4.6%
Medical and Veterinary
September Semester(3)
New students	889	812	+9.5%
Total students	5,887	5,744	+2.5%
Adtalem Brazil
September Semester
New students	17,956	14,507	+23.8%
Total students	81,088	78,340	+3.5%

Enrollment from Discontinued Operations
	FY 2019	FY 2018	% Change
Carrington College
3 months ending September 30, 2018
New students	1,970	2,155	-8.6%
Total students	5,692	5,258	+8.3%
DeVry University
Undergraduate – September Session
New students	3,189	2,825	+12.9%
Total students	18,129	19,287	-6.0%
Graduate – September Session
Coursetakers(4)	6,886	7,915	-13.0%
Undergraduate – July Session
New students	2,977	2,616	+13.8%
Total students	17,478	18,853	-7.3%
Graduate – July Session
Coursetakers(4)	6,449	7,442	-13.3%

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

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)
					September 30,			June 30,			September 30,
					2018			2018			2017
ASSETS:					(in thousands, except share and par value amounts)
	Current Assets:
		Cash and Cash Equivalents		$	408,765		$	430,690		$	273,102
		Marketable Securities and Investments			8,402			4,255			4,139
		Restricted Cash			877			310			1,555
		Accounts Receivable, Net			166,794			146,726			151,867
		Prepaid Expenses and Other Current Assets			69,714			58,887			56,794
		Current Assets Held for Sale			84,834			47,132			54,169
			Total Current Assets		739,386			688,000			541,626
	Land, Building and Equipment:
		Land			43,724			48,177			49,078
		Building			349,694			389,129			403,717
		Equipment			269,298			302,516			289,692
		Construction in Progress			26,849			25,360			18,803
					689,565			765,182			761,290
		Accumulated Depreciation			(338,162	)		(376,528	)		(344,316	)
		Land, Building and Equipment Held for Sale, Net			-			-			59,154
			Land, Building and Equipment, Net		351,403			388,654			476,128
	Noncurrent Assets:
		Deferred Income Taxes			31,080			38,780			32,137
		Intangible Assets, Net			355,595			362,931			395,916
		Goodwill			805,285			813,887			838,669
		Other Assets, Net			53,666			39,259			37,663
		Noncurrent Assets Held for Sale			13,450			13,450			62,372
			Total Noncurrent Assets		1,259,076			1,268,307			1,366,757
TOTAL ASSETS				$	2,349,865		$	2,344,961		$	2,384,511
LIABILITIES:
	Current Liabilities:
		Accounts Payable		$	50,413		$	47,477		$	46,095
		Accrued Salaries, Wages and Benefits			46,255			71,289			56,860
		Accrued Liabilities			90,167			80,803			80,871
		Deferred Revenue			185,061			106,773			171,470
		Current Portion of Long-Term Debt			3,000			3,000			-
		Current Liabilities Held for Sale			84,190			56,439			95,222
			Total Current Liabilities		459,086			365,781			450,518
	Noncurrent Liabilities:
		Long-Term Debt			289,579			290,073			135,000
		Deferred Income Taxes			29,378			29,115			34,755
		Other Liabilities			122,757			131,380			98,718
		Noncurrent Liabilities Held for Sale			216			216			915
			Total Noncurrent Liabilities		441,930			450,784			269,388
TOTAL LIABILITIES					901,016			816,565			719,906
NONCONTROLLING INTEREST					8,814			9,110			6,566
SHAREHOLDERS' EQUITY:
	Common Stock, $0.01 Par Value, 200,000,000 Shares Authorized;
		59,120,000, 59,893,000 and 61,194,000 Shares Outstanding at
		September 30, 2018, June 30, 2018 and September 30, 2017, respectively			798			793			785
	Additional Paid-in Capital				469,545			454,653			422,358
	Retained Earnings				1,908,465			1,917,373			1,894,372
	Accumulated Other Comprehensive Loss				(163,168	)		(142,168	)		(35,720	)
	Treasury Stock, at Cost, 20,727,000, 19,390,000 and 17,271,000 Shares at
		September 30, 2018, June 30, 2018 and September 30, 2017, respectively			(775,605	)		(711,365	)		(623,756	)
TOTAL SHAREHOLDERS' EQUITY					1,440,035			1,519,286			1,658,039
TOTAL LIABILITIES, NONCONTROLLING INTEREST AND
	SHAREHOLDERS' EQUITY			$	2,349,865		$	2,344,961		$	2,384,511

ADTALEM GLOBAL EDUCATION INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
					Three Months Ended
					September 30,
					2018			2017
					(in thousands, except per
					share amounts)
REVENUE				$	284,190		$	293,143
OPERATING COST AND EXPENSE:
	Cost of Educational Services				148,653			173,176
	Student Services and Administrative Expense				98,497			88,944
	Restructuring Expense				39,548			1,137
		Total Operating Cost and Expense			286,698			263,257
Operating (Loss) Income from Continuing Operations					(2,508	)		29,886
INTEREST:
	Interest Income				1,945			2,118
	Interest Expense				(6,202	)		(1,916	)
		Net Interest (Expense) Income			(4,257	)		202
(Loss) Income from Continuing Operations Before Income Taxes					(6,765	)		30,088
Income Tax Benefit (Provision)					1,887			(4,475	)
Equity Method Investment Loss					-			(44	)
(Loss) Income from Continuing Operations					(4,878	)		25,569
DISCONTINUED OPERATIONS:
	Loss from Discontinued Operations Before Income Taxes				(6,135	)		(15,449	)
	Income Tax Benefit				1,428			2,796
	Loss from Discontinued Operations				(4,707	)		(12,653	)
NET (LOSS) INCOME					(9,585	)		12,916
	Net Loss (Income) Attributable to Noncontrolling Interest				55			(131	)
NET (LOSS) INCOME ATTRIBUTABLE TO ADTALEM GLOBAL EDUCATION				$	(9,530	)	$	12,785
AMOUNTS ATTRIBUTABLE TO ADTALEM GLOBAL EDUCATION:
	(Loss) Income from Continuing Operations			$	(4,823	)	$	25,438
	Loss from Discontinued Operations				(4,707	)		(12,653	)
NET (LOSS) INCOME ATTRIBUTABLE TO ADTALEM GLOBAL EDUCATION				$	(9,530	)	$	12,785
EARNINGS (LOSS) PER COMMON SHARE ATTRIBUTABLE TO
	ADTALEM GLOBAL EDUCATION SHAREHOLDERS:
		Basic:
			Continuing Operations	$	(0.08	)	$	0.41
			Discontinued Operations	$	(0.08	)	$	(0.20	)
			Total	$	(0.16	)	$	0.20
		Diluted:
			Continuing Operations	$	(0.08	)	$	0.40
			Discontinued Operations	$	(0.08	)	$	(0.20	)
			Total	$	(0.16	)	$	0.20

ADTALEM GLOBAL EDUCATION INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
					Three Months Ended
					September 30,
					2018			2017
					(in thousands)
CASH FLOW FROM OPERATING ACTIVITIES:
	Net (Loss) Income			$	(9,585	)	$	12,916
	Loss from Discontinued Operations				4,707			12,653
	Adjustments to Reconcile Net (Loss) Income to Net Cash Provided by Operating Activities:
		Stock-Based Compensation Expense			4,137			4,985
		Depreciation			10,042			11,178
		Amortization of Intangible Assets			2,110			2,497
		Amortization of Deferred Debt Issuance Costs			392			176
		Provision for Bad Debts			2,982			4,536
		Deferred Income Taxes			7,915			1,491
		Loss on Disposals, Accelerated Depreciation and Adjustments to Land, Building and Equipment			39,205			10,552
		Changes in Assets and Liabilities:
			Accounts Receivable		(26,314	)		(3,900	)
			Prepaid Expenses and Other		(26,153	)		(16,781	)
			Accounts Payable		780			4,248
			Accrued Salaries, Wages, Benefits and Liabilities		(15,153	)		(30,877	)
			Deferred Revenue		78,622			67,653
	Net Cash Provided by Operating Activities-Continuing Operations				73,687			81,327
	Net Cash Provided by Operating Activities-Discontinued Operations				4,327			9,010
	NET CASH PROVIDED BY OPERATING ACTIVITIES				78,014			90,337
CASH FLOWS FROM INVESTING ACTIVITIES:
	Capital Expenditures				(15,150	)		(11,773	)
	Marketable Securities Purchased				(4,152	)		(13	)
	Net Cash Used in Investing Activities-Continuing Operations				(19,302	)		(11,786	)
	Net Cash Used in Investing Activities-Discontinued Operations				(1,117	)		(2,122	)
	NET CASH USED IN INVESTING ACTIVITIES				(20,419	)		(13,908	)
CASH FLOWS FROM FINANCING ACTIVITIES:
	Proceeds from Exercise of Stock Options				10,492			1,884
	Employee Taxes Paid on Withholding Shares				(5,188	)		(3,486	)
	Proceeds from Stock Issued Under Colleague Stock Purchase Plan				159			195
	Repurchase of Common Stock for Treasury				(59,175	)		(50,375	)
	Payments of Seller Financed Obligations				(470	)		(6,315	)
	Borrowings Under Credit Facility				-			76,000
	Repayments Under Credit Facility				(750	)		(66,000	)
	NET CASH USED IN FINANCING ACTIVITIES				(54,932	)		(48,097	)
Effects of Exchange Rate Differences					(1,579	)		1,765
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH					1,084			30,097
Cash, Cash Equivalents and Restricted Cash at Beginning of Period					444,405			251,096
Cash, Cash Equivalents and Restricted Cash at End of Period					445,489			281,193
Cash, Cash Equivalents and Restricted Cash of Discontinued Operations at End of Period					35,847			6,973
Cash, Cash Equivalents and Restricted Cash at End of Period				$	409,642		$	274,220

ADTALEM GLOBAL EDUCATION INC.
SEGMENT INFORMATION
(Unaudited)
				Three Months Ended
				September 30,
									Increase
				2018			2017		(Decrease)
				(in thousands)
REVENUE:
	Medical and Healthcare		$	202,100		$	191,285		5.7	%
	Professional Education			35,646			40,042		(11.0	)%
	Technology and Business			47,251			62,439		(24.3	)%
	Home Office and Other			(807	)		(623	)	NM
		Total Consolidated Revenue		284,190			293,143		(3.1	)%
OPERATING INCOME (LOSS):
	Medical and Healthcare			1,656			26,232		(93.7	)%
	Professional Education			4,750			10,507		(54.8	)%
	Technology and Business			(2,745	)		1,861		NM
	Home Office and Other			(6,169	)		(8,714	)	NM
	Total Consolidated Operating (Loss) Income		$	(2,508	)	$	29,886		NM
NON-GAAP SEGMENT 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 first quarter of fiscal year 2019 and 2018. During the first quarter of fiscal year 2019, Adtalem recorded special items related to the following: (i) Restructuring charges 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); and (iii) real estate consolidations at Adtalem's home office (not related to any segment). During the first quarter of fiscal year 2018, Adtalem recorded special items related to the following: (i) Restructuring charges primarily related to workforce reductions at Adtalem's home office in order to align its cost structure with operating changes. 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 adjusted operating income, adjusted net income and adjusted 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 and restructuring 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):
				Three Months Ended
				September 30,
									Increase
				2018			2017		(Decrease)
Medical and Healthcare Operating Income			$	1,656		$	26,232		(93.7	)%
	Restructuring Expense			39,015			112		NM
Medical and Healthcare Operating Income Excluding Special Items			$	40,671		$	26,344		54.4	%
Technology and Business Operating (Loss) Income			$	(2,745	)	$	1,861		NM
	Restructuring Expense			75			-		NM
Technology and Business Operating (Loss) Income Excluding Special Items			$	(2,670	)	$	1,861		NM
Home Office and Other Operating Loss			$	(6,169	)	$	(8,714	)	NM
	Restructuring Expense			458			1,025		NM
Home Office and Other Operating Loss Excluding Special Items			$	(5,711	)	$	(7,689	)	NM
Adtalem Global Education Operating (Loss) Income			$	(2,508	)	$	29,886		NM
	Restructuring Expense			39,548			1,137		NM
Adtalem Global Education Operating Income Excluding Special Items			$	37,040		$	31,023		19.4	%

ADTALEM GLOBAL EDUCATON INC.
NON-GAAP EARNINGS DISCLOSURE
(Unaudited)
				Three Months Ended
				September 30,
				2018			2017
				(in thousands, except
				per share amounts)
Net (Loss) Income			$	(9,530	)	$	12,785
	(Loss) Earnings per Share (basic-2018, diluted-2017)		$	(0.16	)	$	0.20
Continuing Operations:
	Restructuring Expense		$	39,548		$	1,137
		Effect on Earnings per Share (diluted)	$	0.65		$	0.02
	Income Tax Impact on Non-GAAP Adjustments		$	(7,452	)	$	(327	)
		Effect on Earnings per Share (diluted)	$	(0.12	)	$	(0.01	)
Discontinued Operations, net of tax			$	4,707		$	12,653
		Effect on Earnings per Share (diluted)		0.08			0.20
Net Income from Continuing Operations Excluding Special Items, net of tax			$	27,273		$	26,248
	Earnings per Share Excluding Special Items (diluted)		$	0.45		$	0.41
Shares used in Basic EPS Calculation				60,328			NA
Shares used in Diluted EPS Calculation				61,202			63,432

SUPPLEMENTAL RECONCILIATIONS
(Unaudited)
			Three Months Ended September 30, 2018
			(in thousands)
			Medical and			Professional			Technology and			Home Office
			Healthcare			Education			Business			and Other			Consolidated
Revenue:
Fiscal Year 2018 as Reported		$	191,285		$	40,042		$	62,439		$	(623	)	$	293,143
Organic Growth (Decline)			3,471			(5,338	)		(3,223	)		(184	)		(5,274	)
Effect of Acquisitions			-			942			626			-			1,568
Hurricane Impact			7,344			-			-			-			7,344
Effect of Currency Change			-			-			(12,591	)		-			(12,591	)
Fiscal Year 2019 as Reported		$	202,100		$	35,646		$	47,251		$	(807	)	$	284,190
Fiscal Year 2019 % Change:
Organic Growth (Decline)			1.8	%		(13.3	%)		(5.2	%)		NM			(1.8	%)
Effect of Acquisitions			-			2.4	%		1.0	%		NM			0.5	%
Hurricane Impact			3.8	%		-			-			NM			2.5	%
Constant Currency Change			5.7	%		(11.0	%)		(4.2	%)		NM			1.2	%
Effect of Currency Change			-			-			(20.2	%)		NM			(4.3	%)
Fiscal Year 2019 % Change
	as Reported		5.7	%		(11.0	%)		(24.3	%)		NM			(3.1	%)
			Three Months Ended September 30, 2018
			(in thousands)
			Medical and			Professional			Technology and			Home Office
Total Expenses:			Healthcare			Education			Business			and Other			Consolidated
Fiscal Year 2018 as Reported		$	165,053		$	29,535		$	60,578		$	8,091		$	263,257
Cost Increase (Reduction)			10,104			215			143			(2,161	)		8,301
Effect of Acquisitions			-			1,146			417			-			1,563
Hurricane Impact			(13,617	)		-			-			-			(13,617	)
Restructuring Expense Change			38,903			-			75			(567	)		38,411
Effect of Currency Change			-			-			(11,217	)		-			(11,217	)
Fiscal Year 2019 as Reported		$	200,443		$	30,896		$	49,996		$	5,363		$	286,698
Fiscal Year 2019 % Change:
Cost Increase (Reduction)			6.1	%		0.7	%		0.2	%		NM			3.2	%
Effect of Acquisitions			-			3.9	%		0.7	%		NM			0.6	%
Hurricane Impact			(8.3	%)		-			-			NM			(5.2	%)
Restructuring Expense Change			23.6	%		-			0.1	%		NM			14.6	%
Constant Currency Change			21.4	%		4.6	%		1.0	%		NM			13.2	%
Effect of Currency Change			-			-			(18.5	%)		NM			(4.3	%)
Fiscal Year 2019 % Change
	as Reported		21.4	%		4.6	%		(17.5	%)		NM			8.9	%

SUPPLEMENTAL RECONCILIATIONS
(Unaudited)
		Three Months Ended September 30, 2018
		(in thousands)
		Medical and			Professional			Technology			Home Office
Operating Income (Loss):		Healthcare			Education			and Business			and Other			Consolidated
Fiscal Year 2018 as Reported	$	26,232		$	10,507		$	1,861		$	(8,714	)	$	29,886
Organic Growth (Decline)		(6,634	)		(5,553	)		(3,366	)		1,978			(13,575	)
Effect of Acquisitions		-			(204	)		209			-			5
Hurricane Impact		20,961			-			-			-			20,961
Restructuring Expense Change		(38,903	)		-			(75	)		567			(38,411	)
Effect of Currency Change		-			-			(1,374	)		-			(1,374	)
Fiscal Year 2019 as Reported	$	1,656		$	4,750		$	(2,745	)	$	(6,169	)	$	(2,508	)

ADTALEM GLOBAL EDUCATION INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS) 1
(Unaudited)
					Fiscal Year 2018
					Q1			Q2			Q3			Q4
					(in thousands, except per share amounts)
REVENUE				$	293,143		$	308,211		$	310,070		$	319,787
OPERATING COST AND EXPENSE:
	Cost of Educational Services				173,176			157,443			159,312			155,673
	Student Services and Administrative Expense				88,944			89,423			97,633			97,064
	Restructuring Expense				1,137			1,426			621			1,883
		Total Operating Cost and Expense			263,257			248,292			257,566			254,620
Operating Income from Continuing Operations					29,886			59,919			52,504			65,167
INTEREST:
	Interest Income				2,118			1,365			1,329			1,015
	Interest Expense				(1,916	)		(2,481	)		(2,850	)		(7,373	)
		Net Interest Income (Expense)			202			(1,116	)		(1,521	)		(6,358	)
Income from Continuing Operations Before Income Taxes					30,088			58,803			50,983			58,809
Income Tax (Provision) Benefit					(4,475	)		(110,276	)		(8,024	)		38,673
Equity Method Investment (Loss) Income					(44	)		6			(100	)		-
Income (Loss) from Continuing Operations					25,569			(51,467	)		42,859			97,482
DISCONTINUED OPERATIONS:
	Loss from Discontinued Operations Before Income Taxes				(15,449	)		(48,409	)		(7,422	)		(52,882	)
	Income Tax Benefit				2,796			19,094			3,851			18,275
	Loss from Discontinued Operations				(12,653	)		(29,315	)		(3,571	)		(34,607	)
NET INCOME (LOSS)					12,916			(80,782	)		39,288			62,875
	Net (Income) Loss Attributable to Noncontrolling Interest				(131	)		(374	)		46			(69	)
NET INCOME (LOSS) ATTRIBUTABLE TO ADTALEM
	GLOBAL EDUCATION			$	12,785		$	(81,156	)	$	39,334		$	62,806
AMOUNTS ATTRIBUTABLE TO ADTALEM GLOBAL
	EDUCATION:
		Income (Loss) from Continuing Operations		$	25,438		$	(51,841	)	$	42,905		$	97,413
		Loss from Discontinued Operations			(12,653	)		(29,315	)		(3,571	)		(34,607	)
NET INCOME (LOSS) ATTRIBUTABLE TO ADTALEM
	GLOBAL EDUCATION			$	12,785		$	(81,156	)	$	39,334		$	62,806
EARNINGS (LOSS) PER COMMON SHARE ATTRIBUTABLE
	TO ADTALEM GLOBAL EDUCATION SHAREHOLDERS:
		Basic:
			Continuing Operations	$	0.41		$	(0.85	)	$	0.70		$	1.60
			Discontinued Operations	$	(0.20	)	$	(0.48	)	$	(0.06	)	$	(0.57	)
			Total	$	0.20		$	(1.33	)	$	0.64		$	1.03
		Diluted:
			Continuing Operations	$	0.40		$	(0.85	)	$	0.69		$	1.58
			Discontinued Operations	$	(0.20	)	$	(0.48	)	$	(0.06	)	$	(0.56	)
			Total	$	0.20		$	(1.33	)	$	0.63		$	1.02
1	This financial statement provides fiscal year 2018 quarterly supplemental information after classifying DeVry University and Carrington as discontinued operations.

NON-GAAP EARNINGS DISCLOSURE 1
(Unaudited)
					Fiscal Year 2018
					Q1			Q2			Q3			Q4
					(in thousands, except per share amounts)
Net Income (Loss)				$	12,785		$	(81,156	)	$	39,334		$	62,806
	Earnings (Loss) per Share (diluted, basic-Q2)			$	0.20		$	(1.33	)	$	0.63		$	1.02
Continuing Operations:
	Restructuring Expense			$	1,137		$	1,426		$	621		$	1,883
		Effect on Earnings per Share (diluted)		$	0.02		$	0.02		$	0.01		$	0.03
	Tax Cuts and Jobs Act of 2017			$	-		$	101,196		$	-		$	2,682
		Effect on Earnings per Share (diluted)		$	-		$	1.63		$	-		$	0.04
	Tax Benefit on Carrington Loss			$	-		$	-		$	-		$	(48,903	)
		Effect on Earnings per Share (diluted)		$	-		$	-		$	-		$	(0.79	)
	Income Tax Impact on Non-GAAP Adjustments			$	(327	)	$	(528	)	$	(144	)	$	(84	)
		Effect on Earnings per Share (diluted)		$	(0.01	)	$	(0.01	)	$	0.00		$	0.00
Discontinued Operations, net of tax				$	12,653		$	29,315		$	3,571		$	34,607
	Effect on Earnings per Share (diluted)			$	0.20		$	0.47		$	0.06		$	0.56
Net Income from Continuing Operations Excluding Special
	Items, net of tax			$	26,248		$	50,253		$	43,382		$	52,991
		Earnings per Share from Continuing Operations Excluding
			Special Items, net of tax	$	0.41		$	0.81		$	0.70		$	0.86
Shares used in Basic EPS calculation					NA			61,234			NA			NA
Shares used in Diluted EPS calculation					63,432			62,023			61,965			61,659
1	This Non-GAAP information provides fiscal year 2018 quarterly supplemental information after classifying DeVry University and Carrington as discontinued operations.

CONTACT:
Adtalem Global Education
Investor Contact:
Beth Coronelli
Beth.Coronelli@Adtalem.com
630-353-9035
or
Media Contact:
Ernie Gibble
Ernie.Gibble@Adtalem.com
630-353-9920