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

Exhibit 99.1

Adtalem Global Education Announces Third Quarter Fiscal 2019 Results

New Student Enrollment Across the Portfolio Increased 15.4%

CHICAGO--(BUSINESS WIRE)--May 2, 2019--Adtalem Global Education Inc. (NYSE: ATGE), a leading workforce solutions provider, today reported academic, operating and financial results for its fiscal 2019 third quarter ended March 31, 2019.

“The third quarter saw an overall increase in enrollment in the March term, growth across most of our segments, a continued strong balance sheet, and achievement of several strategic milestones. The Medical and Healthcare business grew organically and celebrated the permanent relocation of RUSM to its new home in Barbados. Professional Education also continued its strong momentum, growing 14%, largely due to the continued success of ACAMS and renewed performance at Becker. As we transition into a leading workforce solutions provider, we remain fully focused on growing and extending our reach in this segment, including our pending acquisition of OnCourse Learning’s financial services business,” said Lisa Wardell, president and CEO of Adtalem. “We have, however, experienced pressure on the top-line primarily due to challenges in Brazil, where currency headwinds and delays in FIES funding negatively impacted top-line growth. As a result, we have adjusted our full-year revenue expectations, but are reaffirming our guidance for earnings per share growth given our continued performance in improving our operational efficiencies. Despite the near-term revenue growth challenges, we remain fully committed to driving both top-line and earnings growth to achieve our long-term targets.

“This quarter, we continued to strengthen our balance sheet and maintained our commitment to returning cash to shareholders through ongoing share repurchases. As we look ahead to fiscal year 2020 and beyond, we are committed to unlocking value-creation opportunities by streamlining and focusing the portfolio to build upon existing strengths, and leveraging the opportunities we have to expand our access to new students and customers, product offerings and markets,” concluded Ms. Wardell.

Financial Highlights

Selected financial data for the three months ended March 31, 2019:

• Revenue of $308.6 million declined 0.5 percent compared to the prior year
• Operating income from continuing operations was $46.3 million compared to $52.5 million in the prior year; operating income from continuing operations excluding special items was $50.2 million compared to $53.1 million in the prior year
• Net income was $37.9 million compared to $39.3 million in the prior year; net income from continuing operations excluding special items was $40.0 million compared to $43.4 million in the prior year
• Diluted earnings per share was $0.64 compared to $0.63 in the prior year; diluted earnings per share from continuing operations excluding special items was $0.68 compared to $0.70 in the prior year
• Approximately 1.27 million shares of common stock were repurchased during the third quarter of fiscal 2019 at an average purchase price of $48.15 for a total of $61.0 million

Selected financial data for the nine months ended March 31, 2019:

• Revenue of $909.4 million decreased 0.2 percent compared to the prior year
• Operating income from continuing operations was $114.1 million compared to $142.3 million in the prior year; operating income from continuing operations excluding special items was $145.6 million compared to $145.5 million in the prior year
• Net income was $45.7 million compared to a net loss of $29.0 million in the prior year; net income from continuing operations excluding special items was $111.8 million compared to $119.9 million in the prior year
• Diluted earnings per share was $0.76 compared to a loss per share of $0.46 in the prior year; diluted earnings per share from continuing operations excluding special items was $1.86 compared to $1.92 in the prior year
• Approximately 3.6 million shares of common stock were repurchased during the first nine months of fiscal 2019 at an average purchase price of $48.71 for a total of $176.9 million

Fiscal 2019 third quarter results contained special items including total pre-tax restructuring charges of $3.9 million, primarily related to real estate consolidations in Adtalem Brazil and Adtalem’s home office.

Adtalem completed the transfer of ownership of DeVry University and Carrington College during the second quarter of fiscal 2019. A pre-tax reduction to the previously recorded loss on discontinued operations of $1.8 million was recorded in the third quarter of fiscal 2019 related to these divestitures.

Segment Highlights

Medical and Healthcare

Third quarter segment revenue increased 1.6 percent to $223.6 million compared to the prior year. Excluding the impact of the shift in starts of medical students in the prior year from the September to the January session due to Hurricanes Irma and Maria, third quarter revenue increased 3.3 percent.

Chamberlain revenue was essentially flat in the third quarter compared to the prior year. In the March 2019 session, new student enrollment declined 3.7 percent (online only) while total student enrollment increased 3.4 percent compared to the prior year with strong growth in the campus Bachelor of Science of Nursing program as well as the graduate programs.

Revenue in the quarter for the medical and veterinary schools increased 4.1 percent from the prior year. Excluding the impact of the shift in revenue in the prior year from the September to the January session, third quarter revenue increased 8.5 percent.

Segment operating income in the third quarter was $53.1 million compared to $60.3 million in the prior year. Excluding special items, segment operating income in the third quarter was $53.0 million compared to $60.8 million in the prior year.

Professional Education

Third quarter segment revenue increased 14.1 percent to $35.9 million compared to the prior year. Becker Accounting revenue grew 3.0 percent and ACAMS revenue increased 38.1 percent. Segment operating income in the quarter was $5.1 million compared to $2.4 million in the prior year.

Technology and Business

Third quarter segment revenue decreased 15.5 percent to $49.9 million compared to the prior year. On a constant currency basis, revenue decreased 2.0 percent compared to the prior year driven by higher discounting necessary to offset the effect of reductions and delays in government financial aid program funding. New student enrollment increased 17.7 percent, and increased 8.6 percent excluding distance learning, while total enrollment was up 5.6 percent and increased 2.0 percent excluding distance learning.

Segment operating loss in the third quarter was $2.6 million compared to a loss of $0.1 million in the prior year. Excluding special items, third quarter segment operating loss was $0.8 million compared to $0.1 million in the prior year.

Adtalem Outlook

Fiscal Fourth Quarter 2019

• Revenue is expected to increase approximately 3 to 4 percent compared to the prior year
• Operating costs excluding special items are expected to increase 3 to 4 percent compared to the prior year. The fourth quarter outlook assumes an exchange rate of 3.81 Brazilian real to the U.S. dollar

Fiscal Year 2019

• Revenue is expected to be essentially flat compared to the prior year
• Effective income tax rate is expected to be in the 16 to 17 percent range
• Earnings per share from continuing operations excluding special items are expected to grow in the 2 to 3 percent range compared to the prior year
• Full year capital spending is expected to be approximately $65 million

Conference Call and Webcast Information

Adtalem will hold a conference call to discuss its third quarter fiscal 2019 earnings on Thursday, May 2, 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: 13689883. Adtalem will also broadcast the conference call on the Adtalem website at https://78449.themediaframe.com/dataconf/productusers/age/mediaframe/29880/indexl.html.

Please access the website at least 15 minutes prior to the start of the call to register, download and install any necessary audio software.

Adtalem will archive a telephone replay of the call until June 3, 2019. To access the replay, dial 877-660-6853 (domestic) or 201-612-7415 (international), conference ID: 13689883. To access the webcast replay, please visit Adtalem's website at http://investors.adtalem.com/CorporateProfile

About Adtalem Global Education Inc.

The purpose of Adtalem Global Education Inc. is to empower students to achieve their goals, find success, and make inspiring contributions to our global community. Adtalem Global Education Inc. (NYSE: ATGE; member S&P MidCap 400 Index) is a leading global education provider and the parent organization of Adtalem Educacional do Brasil, American University of the Caribbean School of Medicine, Association of Certified Anti-Money Laundering Specialists, Becker Professional Education, Chamberlain University, EduPristine, Ross University School of Medicine and Ross University School of Veterinary Medicine. For more information, please visit adtalem.com.

Forward-Looking Statement

Certain statements contained in this release concerning Adtalem Global Education’s expected future performance, including those statements concerning expectations or plans, constitute “forward-looking statements” within the meaning of the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. These forward-looking statements generally can be identified by phrases such as Adtalem Global Education or its management “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates,” “plans,” “intends,” “continues,” “may,” “will,” “should,” “could,” or other words or phrases of similar import which predict or indicate future events or trends or that are not statements of historical matters. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances.

These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause or contribute to a material difference include the risks discussed in Item 1A, “Risk Factors,” in our most recent Annual Report on Form 10-K for the year ending June 30, 2018 filed with the Securities and Exchange Commission (SEC) on August 24, 2018 and our other filings with the SEC. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. All forward-looking statements set forth in this release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business or operations. Forward-looking statements set forth in this release speak only as of the date hereof, and we do not undertake any obligation to update forward-looking statements to reflect subsequent events or circumstances, changes in expectations or the occurrence of unanticipated events, except to the extent required by law.

	3Q 2019	3Q 2018	% Change
Adtalem Global Education Student Enrollments1
New students	30,231	26,197	+15.4%
Total students	117,571	112,691	+4.3%
Adtalem Brazil
March Semester
New students	27,505	23,367	+17.7%
Total students	79,919	75,700	+5.6%
Chamberlain University
January Session
New students	4,759	4,472	+6.4%
Total students	32,354	31,333	+3.3%
March Session
New students(2)	2,726	2,830	-3.7%
Total students	32,104	31,053	+3.4%
Average Third Quarter Enrollment(3)
New students	4,081	3,925	+4.0%
Total students	32,271	31,240	+3.3%
Medical and Veterinary
January Semester(4)
New students	471	515	-8.5%
Total students	5,548	5,938	-6.6%

1)	Includes the most recently reported enrollments at Adtalem’s postsecondary institutions
2)	Post-licensure online programs only; pre-licensure campus-based programs start in September, January and May; Total students includes pre and post-licensure enrollment
3)	Weighted average: 2/3 January, 1/3 March
4)	Includes enrollments in its medical and veterinary preparatory programs

ADTALEM GLOBAL EDUCATION INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
					March 31,			June 30,			March 31,
					2019			2018			2018
ASSETS:					(in thousands, except share and par value amounts)
	Current Assets:
		Cash and Cash Equivalents		$	321,211		$	430,690		$	265,325
		Investments in Marketable Securities			8,341			4,255			4,200
		Restricted Cash			391			310			498
		Accounts Receivable, Net			155,372			146,726			155,418
		Prepaid Expenses and Other Current Assets			54,776			58,887			70,275
		Current Assets Held for Sale			-			47,132			43,624
			Total Current Assets		540,091			688,000			539,340
	Land, Building and Equipment:
		Land			43,801			48,177			48,359
		Building			374,535			389,129			383,880
		Equipment			279,170			302,516			304,971
		Construction in Progress			16,445			25,360			29,711
					713,951			765,182			766,921
		Accumulated Depreciation			(354,330	)		(376,528	)		(363,556	)
		Land, Building and Equipment Held for Sale, Net			-			-			14,994
			Land, Building and Equipment, Net		359,621			388,654			418,359
	Noncurrent Assets:
		Deferred Income Taxes			19,199			38,780			30,500
		Intangible Assets, Net			355,147			362,931			385,142
		Goodwill			811,260			813,887			845,843
		Other Assets, Net			63,385			39,259			32,021
		Noncurrent Assets Held for Sale			-			13,450			37,121
			Total Other Assets		1,248,991			1,268,307			1,330,627
TOTAL ASSETS				$	2,148,703		$	2,344,961		$	2,288,326
LIABILITIES:
	Current Liabilities:
		Accounts Payable		$	42,322		$	47,477		$	33,992
		Accrued Salaries, Wages and Benefits			54,901			71,289			60,794
		Accrued Liabilities			86,622			80,803			77,917
		Deferred Revenue			122,360			106,773			133,299
		Current Portion of Long-Term Debt			3,000			3,000			-
		Current Liabilities Held for Sale			-			56,439			72,624
			Total Current Liabilities		309,205			365,781			378,626
	Noncurrent Liabilities:
		Long-Term Debt			288,589			290,073			120,000
		Deferred Income Taxes			33,278			29,115			33,519
		Other Liabilities			104,562			131,380			96,920
		Income Taxes Payable			-			-			88,562
		Noncurrent Liabilities Held for Sale			-			216			1,021
			Total Other Liabilities		426,429			450,784			340,022
TOTAL LIABILITIES					735,634			816,565			718,648
NONCONTROLLING INTEREST					8,482			9,110			11,391
SHAREHOLDERS' EQUITY:
	Common Stock, $0.01 Par Value, 200,000,000 Shares Authorized; 56,954,000,
		59,893,000 and 60,369,000 Shares Outstanding at March 31, 2019,
		June 30, 2018 and March 31, 2018, respectively			801			793			792
	Additional Paid-in Capital				483,043			454,653			450,120
	Retained Earnings				1,964,169			1,917,373			1,852,122
	Accumulated Other Comprehensive Loss				(148,706	)		(142,168	)		(59,195	)
	Treasury Stock, at Cost, 23,149,000, 19,390,000 and 18,852,000 Shares at
		March 31, 2019, June 30, 2018 and March 31, 2018, respectively			(894,720	)		(711,365	)		(685,552	)
TOTAL SHAREHOLDERS' EQUITY					1,404,587			1,519,286			1,558,287
TOTAL LIABILITIES, NONCONTROLLING INTEREST AND
	SHAREHOLDERS' EQUITY			$	2,148,703		$	2,344,961		$	2,288,326

ADTALEM GLOBAL EDUCATION INC. CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
					Three Months Ended March 31,						Nine Months Ended December 31,
					2019			2018			2019			2018
					(in thousands, except per share amounts)
REVENUE				$	308,609		$	310,070		$	909,393		$	911,424
OPERATING COST AND EXPENSE:
	Cost of Educational Services				156,339			159,312			463,224			489,931
	Student Services and Administrative Expense				102,062			97,633			300,548			276,000
	Restructuring Expense				3,902			621			47,095			3,184
	Insurance Settlement Gain				-			-			(15,571	)		-
		Total Operating Cost and Expense			262,303			257,566			795,296			769,115
Operating Income from Continuing Operations					46,306			52,504			114,097			142,309
OTHER INCOME (EXPENSE):
	Interest and Dividend Income				2,003			1,329			6,121			4,812
	Interest Expense				(5,269	)		(2,850	)		(17,027	)		(7,247	)
	Investment Gain (Loss)				715			-			(407	)		-
		Net Other Expense			(2,551	)		(1,521	)		(11,313	)		(2,435	)
Income from Continuing Operations Before Income Taxes					43,755			50,983			102,784			139,874
Income Tax Provision					(7,542	)		(8,024	)		(18,820	)		(122,775	)
Equity Method Investment Loss					-			(100	)		-			(138	)
Income from Continuing Operations					36,213			42,859			83,964			16,961
DISCONTINUED OPERATIONS:
	Income (Loss) from Discontinued Operations Before
		Income Taxes			2,038			(7,422	)		(12,410	)		(71,280	)
	Loss on Disposal of Discontinued Operations Before
		Income Taxes			(265	)		-			(32,979	)		-
	Income Tax (Provision) Benefit				(120	)		3,851			7,212			25,741
	Income (Loss) from Discontinued Operations				1,653			(3,571	)		(38,177	)		(45,539	)
NET INCOME (LOSS)					37,866			39,288			45,787			(28,578	)
	Net Loss (Income) Attributable to Noncontrolling Interest				39			46			(117	)		(459	)
NET INCOME (LOSS) ATTRIBUTABLE TO ADTALEM
	GLOBAL EDUCATION			$	37,905		$	39,334		$	45,670		$	(29,037	)
AMOUNTS ATTRIBUTABLE TO ADTALEM GLOBAL
	EDUCATION:
		Income from Continuing Operations		$	36,252		$	42,905		$	83,847		$	16,502
		Income (Loss) from Discontinued Operations			1,653			(3,571	)		(38,177	)		(45,539	)
NET INCOME (LOSS) ATTRIBUTABLE TO ADTALEM
	GLOBAL EDUCATION			$	37,905		$	39,334		$	45,670		$	(29,037	)
EARNINGS (LOSS) PER COMMON SHARE ATTRIBUTABLE
	TO ADTALEM GLOBAL EDUCATION SHAREHOLDERS:
		Basic:
			Continuing Operations	$	0.62		$	0.70		$	1.42		$	0.27
			Discontinued Operations	$	0.03		$	(0.06	)	$	(0.64	)	$	(0.74	)
			Total	$	0.65		$	0.64		$	0.77		$	(0.47	)
		Diluted:
			Continuing Operations	$	0.62		$	0.69		$	1.40		$	0.26
			Discontinued Operations	$	0.03		$	(0.06	)	$	(0.64	)	$	(0.73	)
			Total	$	0.64		$	0.63		$	0.76		$	(0.46	)

ADTALEM GLOBAL EDUCATION INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
					Nine Months Ended March 31,
					2019			2018
					(in thousands)
CASH FLOW FROM OPERATING ACTIVITIES:
	Net Income (Loss)			$	45,787		$	(28,578	)
	Loss from Discontinued Operations				38,177			45,539
	Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities:
		Stock-Based Compensation Expense			10,369			11,517
		Depreciation			31,758			33,554
		Amortization of Intangible Assets			6,231			7,333
		Amortization of Deferred Debt Issuance Costs			1,175			528
		Provision for Bad Debts			11,203			13,370
		Deferred Income Taxes			23,717			3,541
		Loss on Disposals, Accelerated Depreciation and Adjustments to Land, Building and Equipment			44,489			29,964
		Realized Loss on Investments			193			-
		Unrealized Loss on Investments			214			-
		Insurance Settlement Gain			(15,571	)		-
		Changes in Assets and Liabilities:
			Accounts Receivable		(20,838	)		(18,967	)
			Prepaid Expenses and Other		(39,127	)		(30,625	)
			Accounts Payable		(4,292	)		(3,960	)
			Accrued Salaries, Wages, Benefits and Liabilities		(4,566	)		(29,538	)
			Deferred Revenue		15,688			29,003
			Income Taxes Payable, Long-Term		-			88,562
	Net Cash Provided by Operating Activities-Continuing Operations				144,607			151,243
	Net Cash (Used in) Provided by Operating Activities-Discontinued Operations				(16,072	)		32,021
	NET CASH PROVIDED BY OPERATING ACTIVITIES				128,535			183,264
CASH FLOWS FROM INVESTING ACTIVITIES:
	Capital Expenditures				(50,853	)		(50,433	)
	Insurance Proceeds Received for Damage to Buildings and Equipment				35,706			-
	Sales of Marketable Securities				1,625			-
	Purchases of Marketable Securities				(6,070	)		(145	)
	Payment for Purchase of Businesses, Net of Cash Acquired				-			(4,041	)
	Loan to DeVry University				(10,000	)		-
	Net Cash Used in Investing Activities-Continuing Operations				(29,592	)		(54,619	)
	Net Cash (Used in) Provided by Investing Activities-Discontinued Operations				(1,833	)		5,189
	Cash and Restricted Cash Transferred in Divestitures of Discontinued Operations				(48,876	)		-
	NET CASH USED IN INVESTING ACTIVITIES				(80,301	)		(49,430	)
CASH FLOWS FROM FINANCING ACTIVITIES:
	Proceeds from Exercise of Stock Options				16,825			22,557
	Employee Taxes Paid on Withholding Shares				(6,527	)		(3,862	)
	Proceeds from Stock Issued Under Colleague Stock Purchase Plan				421			585
	Repurchase of Common Stock for Treasury				(176,903	)		(111,626	)
	Payments of Seller Financed Obligations				(2,154	)		(10,559	)
	Borrowings Under Credit Facility				-			258,000
	Repayments Under Credit Facility				(2,250	)		(263,000	)
	NET CASH USED IN FINANCING ACTIVITIES				(170,588	)		(107,905	)
Effects of Exchange Rate Differences					(449	)		(714	)
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH					(122,803	)		25,215
Cash, Cash Equivalents and Restricted Cash at Beginning of Period					444,405			251,096
Cash, Cash Equivalents and Restricted Cash at End of Period					321,602			276,311
Less: Cash, Cash Equivalents and Restricted Cash of Discontinued Operations at End of Period					-			10,488
Cash, Cash Equivalents and Restricted Cash at End of Period				$	321,602		$	265,823

ADTALEM GLOBAL EDUCATION INC.
SEGMENT INFORMATION
(Unaudited)
			Three Months Ended March 31,								Nine Months Ended March 31,
			2019			2018		Increase (Decrease)			2019			2018		Increase (Decrease)
REVENUE:			(in thousands)
	Medical and Healthcare	$	223,575		$	220,067		1.6	%	$	638,302		$	614,649		3.8	%
	Professional Education		35,935			31,505		14.1	%		113,723			101,906		11.6	%
	Technology and Business		49,907			59,030		(15.5	)%		159,791			196,602		(18.7	)%
	Home Office and Other		(808	)		(532	)	NM			(2,423	)		(1,733	)	NM
	Total Consolidated Revenue		308,609			310,070		(0.5	)%		909,393			911,424		(0.2	)%
OPERATING INCOME (LOSS):
	Medical and Healthcare		53,093			60,304		(12.0	)%		115,396			141,583		(18.5	)%
	Professional Education		5,086			2,382		113.5	%		19,469			15,082		29.1	%
	Technology and Business		(2,561	)		(103	)	NM			3,165			15,749		(79.9	)%
	Home Office and Other		(9,312	)		(10,079	)	NM			(23,933	)		(30,105	)	NM
	Total Consolidated Operating Income	$	46,306		$	52,504		(11.8	)%	$	114,097		$	142,309		(19.8	)%

NON-GAAP INFORMATION
In accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), the operating results of DeVry University and Carrington College ("Carrington") are reclassified as discontinued operations for the third quarter and first nine months of fiscal year 2019 and 2018. During the third quarter and the first nine months of fiscal year 2019, Adtalem recorded special items related to the following: (i) restructuring expense related to the closing of the Ross University School of Medicine ("RUSM"), which is part of the Medical and Healthcare segment, campus in Dominica; (ii) loss on sale charges at Adtalem Brazil, which is part of the Technology and Business segment, related to the disposition of the Joao Pessoa institution (presented as restructuring expense); (iii) restructuring expense at Adtalem Brazil and Adtalem's home office primarily related to real estate consolidations (not related to any segment); (iv) insurance settlement gain related to the final insurance settlement related to Hurricanes Irma and Maria at the American University of the Caribbean School of Medicine ("AUC") and RUSM; and (v) adjustments to the preliminary income tax charges related to the implementation of the Tax Cuts and Jobs Act of 2017 and tax charges related to the divestiture of DeVry University. During the third quarter and the first nine months of fiscal year 2018, Adtalem recorded special items related to restructuring expense primarily related to workforce reductions and real estate consolidations at Adtalem's home office. The following tables illustrate the effects of the discontinued operations and special items on Adtalem’s operating income from continuing operations excluding special items and net income from continuing operations excluding special items. Management believes that the non-GAAP disclosure of operating income from continuing operations, net income from continuing operations and earnings per share excluding the discontinued operations and special items provides investors with useful supplemental information regarding the underlying business trends and performance of Adtalem’s ongoing operations and is useful for period-over-period comparisons of such operations given the special nature of discontinued operations, restructuring charges, insurance settlement gain and certain income tax charges. Adtalem uses these supplemental financial measures internally in its management and budgeting process. However, these non-GAAP financial measures should be viewed in addition to, and not as a substitute for, Adtalem’s reported results prepared in accordance with GAAP. The following tables reconcile these non-GAAP measures to the most directly comparable GAAP information (in thousands).
ADTALEM GLOBAL EDUCATION INC.
NON-GAAP OPERATING INCOME FROM CONTINUING OPERATIONS BY SEGMENT
(Unaudited)
			Three Months Ended March 31,								Nine Months Ended March 31,
			2019			2018		Increase (Decrease)			2019			2018		Increase (Decrease)
Medical and Healthcare Operating Income		$	53,093		$	60,304		(12.0	)%	$	115,396		$	141,583		(18.5	)%
	Restructuring Expense		(133	)		530		NM			41,327			642		NM
	Insurance Settlement Gain		-			-		NM			(15,571	)		-		NM
Medical and Healthcare Operating Income
	Excluding Special Items	$	52,960		$	60,834		(12.9	)%	$	141,152		$	142,225		(0.8	)%
Technology and Business Operating Income		$	(2,561	)	$	(103	)	NM		$	3,165		$	15,749		(79.9	)%
	Restructuring Expense		1,716			-		NM			1,901			-		NM
Technology and Business Operating Income
	Excluding Special Items	$	(845	)	$	(103	)	NM		$	5,066		$	15,749		(67.8	)%
Home Office and Other Operating Loss		$	(9,312	)	$	(10,079	)	NM		$	(23,933	)	$	(30,105	)	NM
	Restructuring Expense		2,319			91		NM			3,867			2,542		NM
Home Office and Other Operating Loss
	Excluding Special Items	$	(6,993	)	$	(9,988	)	NM		$	(20,066	)	$	(27,563	)	NM
Adtalem Global Education Operating Income		$	46,306		$	52,504		(11.8	)%	$	114,097		$	142,309		(19.8	)%
	Restructuring Expense		3,902			621		NM			47,095			3,184		NM
	Insurance Settlement Gain		-			-		NM			(15,571	)		-		NM
Adtalem Global Education Operating Income
	Excluding Special Items	$	50,208		$	53,125		(5.5	)%	$	145,621		$	145,493		0.1	%

ADTALEM GLOBAL EDUCATION INC.
NON-GAAP EARNINGS DISCLOSURE
(Unaudited)
					Three Months Ended March 31,						Nine Months Ended March 31,
					2019			2018			2019			2018
					(in thousands, except per share amounts)
Net Income (Loss)				$	37,905		$	39,334		$	45,670		$	(29,037	)
	Earnings (Loss) per Share (diluted)			$	0.64		$	0.63		$	0.76		$	(0.46	)
Continuing Operations:
	Restructuring Expense			$	3,902		$	621		$	47,095		$	3,184
		Effect on Earnings per Share (diluted)		$	0.07		$	0.01		$	0.78		$	0.05
	Insurance Settlement Gain			$	-		$	-		$	(15,571	)	$	-
		Effect on Earnings per Share (diluted)		$	-		$	-		$	(0.26	)	$	-
	Tax Cuts and Jobs Act of 2017 and Tax Charges Related
		to the Divestiture of DeVry University		$	-		$	-		$	1,526		$	101,196
			Effect on Earnings per Share (diluted)	$	-		$	-		$	0.03		$	1.62
	Income Tax Impact on Non-GAAP Adjustments			$	(105	)	$	(144	)	$	(5,074	)	$	(999	)
		Effect on Earnings per Share (diluted)		$	(0.00	)	$	(0.00	)	$	(0.08	)	$	(0.02	)
Discontinued Operations, net of tax				$	(1,653	)	$	3,571		$	38,177		$	45,539
	Effect on Earnings per Share (diluted)			$	(0.03	)	$	0.06		$	0.64		$	0.73
Net Income from Continuing Operations Excluding Special
	Items, net of tax			$	40,049		$	43,382		$	111,823		$	119,883
		Earnings per Share from Continuing Operations Excluding
			Special Items, net of tax (diluted)	$	0.68		$	0.70		$	1.86		$	1.92
Shares used in EPS calculation					58,802			61,965			60,004			62,474

SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
		Three Months Ended March 31, 2019
		(in thousands)
Revenue:		Medical and Healthcare			Professional Education			Technology and Business			Home Office and Other			Consolidated
Fiscal Year 2018 as Reported	$	220,067		$	31,505		$	59,030		$	(532	)	$	310,070
Organic Growth (Decline)		7,177			3,848			(1,173	)		(276	)		9,576
Effect of Acquisitions		-			582			-			-			582
Hurricane Impact		(3,669	)		-			-			-			(3,669	)
Effect of Currency Change		-			-			(7,950	)		-			(7,950	)
Fiscal Year 2019 as Reported	$	223,575		$	35,935		$	49,907		$	(808	)	$	308,609
Fiscal Year 2019 % Change:
Organic Growth (Decline)		3.3	%		12.2	%		(2.0	%)		NM			3.1	%
Effect of Acquisitions		-			1.8	%		-			NM			0.2	%
Hurricane Impact		(1.7	%)		-			-			NM			(1.2	%)
Constant Currency Change		1.6	%		14.1	%		(2.0	%)		NM			2.1	%
Effect of Currency Change		-			-			(13.5	%)		NM			(2.6	%)
Fiscal Year 2019 % Change as Reported		1.6	%		14.1	%		(15.5	%)		NM			(0.5	%)
		Nine Months Ended March 31, 2019
		(in thousands)
Revenue:		Medical and Healthcare			Professional Education			Technology and Business			Home Office and Other			Consolidated
Fiscal Year 2018 as Reported	$	614,649		$	101,906		$	196,602		$	(1,733	)	$	911,424
Organic Growth (Decline)		19,086			9,344			(6,638	)		(690	)		21,102
Effect of Acquisitions		-			2,473			1,100			-			3,573
Hurricane Impact		4,567			-			-			-			4,567
Effect of Currency Change		-			-			(31,273	)		-			(31,273	)
Fiscal Year 2019 as Reported	$	638,302		$	113,723		$	159,791		$	(2,423	)	$	909,393
Fiscal Year 2019 % Change:
Organic Growth (Decline)		3.1	%		9.2	%		(3.4	%)		NM			2.3	%
Effect of Acquisitions		-			2.4	%		0.6	%		NM			0.4	%
Hurricane Impact		0.7	%		-			-			NM			0.5	%
Constant Currency Change		3.8	%		11.6	%		(2.8	%)		NM			3.2	%
Effect of Currency Change		-			-			(15.9	%)		NM			(3.4	%)
Fiscal Year 2019 % Change as Reported		3.8	%		11.6	%		(18.7	%)		NM			(0.2	%)

SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
		Three Months Ended March 31, 2019
		(in thousands)
Total Operating Cost and Expense:		Medical and Healthcare			Professional Education			Technology and Business			Home Office and Other			Consolidated
Fiscal Year 2018 as Reported	$	159,764		$	29,123		$	59,133		$	9,546		$	257,566
Cost Increase (Reduction)		11,382			910			(840	)		(3,271	)		8,181
Effect of Acquisitions		-			816			-			-			816
Restructuring Expense Change		(663	)		-			1,716			2,228			3,281
Effect of Currency Change		-			-			(7,541	)		-			(7,541	)
Fiscal Year 2019 as Reported	$	170,483		$	30,849		$	52,468		$	8,503		$	262,303
Fiscal Year 2019 % Change:
Cost Increase (Reduction)		7.1	%		3.1	%		(1.4	%)		NM			3.2	%
Effect of Acquisitions		-			2.8	%		-			NM			0.3	%
Restructuring Expense Change		(0.4	%)		-			2.9	%		NM			1.3	%
Constant Currency Change		6.7	%		5.9	%		1.5	%		NM			4.8	%
Effect of Currency Change		-			-			(12.8	%)		NM			(2.9	%)
Fiscal Year 2019 % Change as Reported		6.7	%		5.9	%		(11.3	%)		NM			1.8	%
		Nine Months Ended March 31, 2019
		(in thousands)
Total Operating Cost and Expense:		Medical and Healthcare			Professional Education			Technology and Business			Home Office and Other			Consolidated
Fiscal Year 2018 as Reported	$	473,066		$	86,824		$	180,853		$	28,372		$	769,115
Cost Increase (Reduction)		38,098			4,235			566			(8,187	)		34,712
Effect of Acquisitions		-			3,195			650			-			3,845
Hurricane Impact		(13,372	)		-			-			-			(13,372	)
Restructuring Expense Change		40,685			-			1,901			1,325			43,911
Insurance Settlement Gain		(15,571	)		-			-			-			(15,571	)
Effect of Currency Change		-			-			(27,344	)		-			(27,344	)
Fiscal Year 2019 as Reported	$	522,906		$	94,254		$	156,626		$	21,510		$	795,296
Fiscal Year 2019 % Change:
Cost Increase (Reduction)		8.1	%		4.9	%		0.3	%		NM			4.5	%
Effect of Acquisitions		-			3.7	%		0.4	%		NM			0.5	%
Hurricane Impact		(2.8	%)		-			-			NM			(1.7	%)
Restructuring Expense Change		8.6	%		-			1.1	%		NM			5.7	%
Insurance Settlement Gain		(3.3	%)		-			-			NM			(2.0	%)
Constant Currency Change		10.5	%		8.6	%		1.7	%		NM			7.0	%
Effect of Currency Change		-			-			(15.1	%)		NM			(3.6	%)
Fiscal Year 2019 % Change as Reported		10.5	%		8.6	%		(13.4	%)		NM			3.4	%

SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
		Three Months Ended March 31, 2019
		(in thousands)
Operating Income (Loss):		Medical and Healthcare			Professional Education			Technology and Business			Home Office and Other			Consolidated
Fiscal Year 2018 as Reported	$	60,304		$	2,382		$	(103	)	$	(10,079	)	$	52,504
Organic Change		(4,205	)		2,938			(333	)		2,995			1,395
Effect of Acquisitions		-			(234	)		-			-			(234	)
Hurricane Impact		(3,669	)		-			-			-			(3,669	)
Restructuring Expense Change		663			-			(1,716	)		(2,228	)		(3,281	)
Effect of Currency Change		-			-			(409	)		-			(409	)
Fiscal Year 2019 as Reported	$	53,093		$	5,086		$	(2,561	)	$	(9,312	)	$	46,306
		Nine Months Ended March 31, 2019
		(in thousands)
Operating Income (Loss):		Medical and Healthcare			Professional Education			Technology and Business			Home Office and Other			Consolidated
Fiscal Year 2018 as Reported	$	141,583		$	15,082		$	15,749		$	(30,105	)	$	142,309
Organic Change		(19,012	)		5,109			(7,204	)		7,497			(13,610	)
Effect of Acquisitions		-			(722	)		450			-			(272	)
Hurricane Impact		17,939			-			-			-			17,939
Restructuring Expense Change		(40,685	)		-			(1,901	)		(1,325	)		(43,911	)
Insurance Settlement Gain		15,571			-			-			-			15,571
Effect of Currency Change		-			-			(3,929	)		-			(3,929	)
Fiscal Year 2019 as Reported	$	115,396		$	19,469		$	3,165		$	(23,933	)	$	114,097

CONTACT:
Investor Contact:
John Kristoff
John.Kristoff@Adtalem.com
312-651-1437

Media Contact:
Ernie Gibble
Ernie.Gibble@Adtalem.com
630-353-9920