Covista (CVSA) Q4 2024 earnings summary

Executive summary

• Achieved and exceeded fiscal year 2024 financial targets, with revenue up 9.2% to $1,585 million and double-digit enrollment growth, driven by strategic initiatives and operational excellence.

• Total enrollment grew 10.0% year-over-year in Q4 2024, reaching 83,321 students, with over 27,000 graduates, approximately 90% entering healthcare fields.

• Expanded access to healthcare education through new campuses, technology enhancements, and program offerings, including a generative AI tutor pilot and new nursing specializations.

• Integrated five institutions for greater efficiency and profitability, and enhanced student experiences.

• Returned $261 million to shareholders and repaid $50 million of Term Loan B, reducing net leverage to 1.2x.

Financial highlights

• Fiscal year 2024 revenue reached $1.585 billion, up 9.2% year-over-year; adjusted EBITDA margin was 23.8%, and adjusted EPS was $5.01, a 19% increase.

• Free cash flow was $239 million, up $70 million from FY 2023.

• Q4 2024 revenue was $410 million, up 12.4% year-over-year; Q4 adjusted EBITDA was $97.4 million, up 16.9%.

• Adjusted net income for the year was $201.8 million, up 5% year-over-year.

• Diluted EPS for fiscal 2024 was $3.39; adjusted EPS was $5.01, a 19% increase year-over-year.

Outlook and guidance

• Fiscal year 2025 revenue projected at $1.66–$1.7 billion, 5–7.5% growth year-over-year.

• Adjusted EPS guidance of $5.60–$5.85, representing 12–17% growth.

• Expecting approximately 100 basis points of adjusted EBITDA margin expansion and continued strong cash flow.

• Revenue growth expected to be higher in the first half of FY25, with investments weighted to Q1.

• Normalized adjusted effective tax rate expected at 22%.