Business
Laureate Education Reports First Quarter 2020 Financial Results
Prior Investments in Technology Enabled Rapid Transition to Online Learning at All InstitutionsCompany Updates Its Full-Year 2020 Guidance in Response to the
About this update from Laureate Education, Inc.
[{"type":"text","content":"Prior Investments in Technology Enabled Rapid Transition to Online Learning at All InstitutionsCompany Updates Its Full-Year 2020 Guidance in Response to the COVID-19 PandemicCompany Provides Update on Its Strategic Review\n BALTIMORE, May 07, 2020 (GLOBE NEWSWIRE) -- Laureate Education, Inc. (NASDAQ: LAUR) today announced financial results for the first quarter of 2020. First Quarter 2020 Highlights (compared to first quarter 2019): New enrollments decreased 18%, down 6%, adjusted for the timing of semester start dates and excluding the divestiture of UniNorte Brazil in the prior year.Total enrollments decreased 5%, down 2% excluding the divestiture of UniNorte Brazil in the prior year.On a reported basis, revenue decreased 12% to $528.6 million due primarily to the weakening of foreign currencies against the U.S. Dollar and the timing of semester start dates. On an organic constant currency basis,1 revenue decreased 4%.Operating loss increased by $25.1 million, or 27%, to $(117.1) million.Net income (including discontinued operations) for the three months ended March 31, 2020 was $98.3 million, due to a discrete tax benefit, as compared to net income (including discontinued operations) of $194.3 million for the three months ended March 31, 2019, which was largely attributable to gains from asset sales.Adjusted EBITDA was a loss of $(36.9) million, a decrease in Adjusted EBITDA of $7.3 million, or 25%, due primarily to the timing of semester start dates during an already seasonally lower quarter. On an organic constant currency basis, Adjusted EBITDA decreased 35%. Eilif Serck-Hanssen, President and Chief Executive Officer, said, “Laureate’s business model demonstrated resiliency in the first quarter. While the COVID-19 pandemic affected the Company’s main intake cycle in the Southern Hemisphere, resulting in lower new enrollments than anticipated, solid re-enrollment performance helped mitigate the impact on total enrollments. To further enhance Laureate’s already strong liquidity position, we have proactively implemented a number of actions to preserve cash, including cost reductions. We are continuing with our strategic review process to unlock value for all our stakeholders, albeit at a slower-than-anticipated pace in light of the pandemic’s effect on market conditions.” Mr. Serck-Hanssen added, “During these unprecedented ...