Covista Inc. Q1 FY2025 earnings call

• Commenced year two of the three-year Growth with Purpose strategy, driving strong momentum through operational excellence. Revenue for the quarter was $417 million, up 13% year-over-year. Adjusted EBITDA margin expanded 140 basis points, adjusted earnings per share up 39% to $1.29. • Total enrollment up 11.2% year-over-year to over 90,000 students. • Chamberlain saw enrollment up 11.7%, with BSN online option in 36 states and new Atlanta campus exceeding expectations. • Walden saw enrollment up 12.2% year-over-year, with strong interest in social and behavioral sciences. • Implemented AI capabilities, including Chamberlain's Nurse Ally tutor and collaboration with Hippocratic AI for AI certification. • Medical and Veterinary segment showed improvement, with Ross Vet near capacity and Ross Med/AUC having strong value propositions.

Chamberlain: First quarter revenue of $167.9 million, a 17.8% increase year-over-year. Total student enrollment up 11.7%. Adjusted EBITDA $37 million, margin 22%. Walden: First quarter revenue of $161.5 million, a 14.1% increase year-over-year. Total student enrollment up 12.2%. Adjusted EBITDA $47.8 million, margin 29.6%. Medical and Veterinary: First quarter revenue of $88 million, a 3.9% increase year-over-year. Adjusted EBITDA $19.2 million, margin 21.8%.

• Raised fiscal year 2025 revenue guidance to $1.69 billion to $1.73 billion. • Raised adjusted earnings per share guidance to $5.75 to $5.95. • Anticipate approximately 100 basis points of adjusted EBITDA margin expansion. • Normalized adjusted effective tax rate expected to be approximately 23% for the fiscal year.

Q: Jeff Silber from BMO Capital Markets asked about Chamberlain's growth acceleration sustainability and marketing expense shifts.

A: Steve Beard said positive trends in new enrollment, especially post-licensure RN/BSN, sustainable. Bob Phelan added marketing cost shift primarily to Q2.

Q: Alex Paris from Barrington Research asked about marketing investment and revenue guidance.

A: Steve Beard explained mix of performance and brand marketing. Bob Phelan said marketing costs will be leveraged.

Q: Steven Pawlak from Baird asked about full year guidance and revenue risk factors.

A: Bob Phelan said improved outlook for balance of year. Steve Beard said no significant risks, sees upside potential.