Business
Laureate Education Reports Financial Results For the Third Quarter and Nine Months Ended September 30, 2020
Strong Progress on Strategic Review Initiative, Process Completed for Majority of the Portfolio Announcing New Share Repurchase Authorization BALTIMORE, Nov.
About this update from Laureate Education, Inc.
[{"type":"text","content":"Strong Progress on Strategic Review Initiative, Process Completed for Majority of the Portfolio\n Announcing New Share Repurchase Authorization BALTIMORE, Nov. 05, 2020 (GLOBE NEWSWIRE) -- Laureate Education, Inc. (NASDAQ: LAUR) today announced financial results for the third quarter and nine months ended September 30, 2020. The Company also announced strong progress on its strategic review initiative and announced the authorization of a new share repurchase program by its board of directors. Following progress made on the strategic review initiative during the third quarter, entities related to closed and pending asset divestitures have been classified as Discontinued Operations. Unless indicated otherwise, the results presented below relate to Continuing Operations, which encompass Laureate's operations in Mexico and Peru, as well as Laureate's Corporate overhead expenses. Third Quarter 2020 Highlights (compared to third quarter 2019): On a reported basis, revenue decreased 12% to $243.5 million, due primarily to the weakening of foreign currencies against the US Dollar. On an organic constant currency basis1, revenue decreased by 4%.Operating loss for the third quarter of 2020 was $(318.2) million, driven by impairment charges of $323.4 million related to the Laureate tradename, as compared to operating loss of $(18.4) million for the third quarter of 2019.Net loss (including Discontinued Operations) for the third quarter of 2020 was $(784.4) million, primarily attributable to the impairment charges noted above of $323.4 million, as well as the loss from asset sales of $343.6 million, as compared to net loss of $(96.8) million for the third quarter of 2019.Adjusted EBITDA for the third quarter of 2020 was $50.4 million, as compared to Adjusted EBITDA of $30.5 million for the third quarter of 2019. The increase in Adjusted EBITDA was aided by tight cost controls and the acceleration of productivity initiatives, as well as favorable timing impacts from the shifting of certain classes to the third quarter as a result of the COVID-19 pandemic. Nine Months Ended September 30, 2020 Highlights (compared to nine months ended September 30, 2019): New enrollments decreased 7%, as a result of the COVID-19 pandemic.Total enrollments decreased 10%.On a reported basis, revenue decreased 14% to $739.7 million, due to the weakening of foreig...