Laureate Education, Inc. · NASDAQ:LAUR
Laureate Education — Q3 2006 Earnings Presentation
17 slides from Laureate Education's earnings presentation, Oct 19, 2006
Slide 1: Earnings Conference Call and Webcast Third Quarter 2006
Laureate Education, Imc. Earnings Conference Call and Webcast Third Quarter 2006 October 19, 2006
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes information that could constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements may involve risk and uncertainties. Although the Compa
Slide 3: Robust Growth Driven by Strong Student Enrollment
Robust Growth Driven by Strong Student Enrollment New Student Enrollment is YTD, reported as of 10/18/2006 and 10/19/2005, respectively. Total Student Enrollment is census, reported as of 10/18/2006 and 10/19/2005, respectively. Acquisitions (less than 1 year) include the following: Cyprus College a
Slide 4: Third Quarter Highlights Support Long-Term Plan
Third Quarter Highlights Support Long-Term Plan • Online Growth: - New Enrollment: 10% - Total Enrollment: 20% • Online Growth, Conversion Rate and Student Retention Show Continued Strength - Diversification of online marketing channels continues as expected - Strong third quarter online margin impr
Slide 5: Recent Management Additions
Recent Management Additions • Jorge Brake has been hired as President and CEO of Laureate Education’s Mexico and Central America Region. Mr. Brake brings extensive management, marketing and product development experience to Laureate, having served as President and CEO of Procter & Gamble in Mexico a
Slide 6: Fundamentals of 2006 EPS Guidance
Fundamentals of 2006 EPS Guidance 14%-16% Campus-Based total enrollment growth (excluding acquisitions) 20%+ Online total enrollment growth 4%-5% Price improvement Campus maturation (58 Campuses Worldwide) Campus Life-Cycle: • Performing: 25 • Developing: 25 • New: 8 Online margin improvement Fundam
Slide 7: Strategy and Objectives in 2006 & 2007
Strategy and Objectives in 2006 & 2007 • Expand Utilization and Capacity at Existing Campuses • Add 3-4 New Campuses in Existing Countries (includes build v. buy) • Further Acquisitions in Brazil • China Entry Strategy • 1-2 New Countries • Online Initiatives - New programs - Continued margin expans
Slide 8: Latin America Update
Laureate Education, Inc. Latin America Update
Slide 9: Consistent Execution of Strategy in Latin America
Consistent Execution of Strategy in Latin America • 2006 New enrollments total 82,000, an increase of 28% over 2005 • Total enrollment now at 190,000 students in Latin America • Mexico/Central America: - New Enrollment: 25% - Total Enrollment: 15% • South America: - New Enrollment: 32% (4% excluding
Slide 10: Consistent Execution of Strategy in Latin America
Consistent Execution of Strategy in Latin America • Continued Progress with Working Adult Segment - Working adult students (students age 25+) experience high growth rates • Preparations at Anhembi Morumbi, in Brazil - Enrollment campaign underway for February intake
Slide 11: Financial Overview
Laureate Education, Inc. Financial Overview
Slide 12: Strong Third Quarter 2006 Financial Results
Strong Third Quarter 2006 Financial Results • Third quarter 2006 diluted earnings per share: • Total Revenue increased 35% to $260.9 million - Campus Based revenue increased 36% (Latin America 35%, Europe 41%) - Online revenue increased 31% • Operating income decreased $1.9 million - Chilean severan
Slide 13: Margin Analysis
Margin Analysis 3Q '06 Chile Brazil Cyprus 3Q '06 Reported FAS 123R Severance Impact Impact Underlying LATIN AMERICA 17.9% 0.1% 2.2% 2.1% 22.3% EUROPE -37.7% 0.4% 5.5% -31.8%
Slide 14: Strong Third Quarter 2006 Financial Position
Strong Third Quarter 2006 Financial Position • Total cash and marketable securities $173.6 million • Total company debt $463.9 million - Company intends to expand current revolving credit facility to $350 million • Cash flow from operations was $134 million (YTD) • Depreciation and amortization expe
Slide 15: 2006 Financial Outlook
2006 Financial Outlook 4Q2006 Updated FY2006 FY2006 (issued Feb ‘06) Revenue Campus-Based Revenue: $250 - $270 $880 - $900 $845 - $900 Online Revenue: $65 - $70 $230 - $235 $235 - $250 Total Revenue: $315 - $340 $1,110 - $1,135 $1,080 - $1,150 Operating Margin Campus-Based: 28% - 29% 17% - 18% 19% -
Slide 16: Laureate Reiterates 2007 Financial Outlook
Laureate Reiterates 2007 Financial Outlook 2007 Growth Leaders: • Online Higher Education • Mexico/Central America • Brazil (1) Margin improvement (operating income) includes Corporate G&A. Revenue: $1.275 - $1.375 Billion • 13%-15% Total Enrollment Growth Margin Improvement(1) : 50 - 100 bps • Camp
Slide 17: Questions & Answers
Laureate Education, Inc. Questions & Answers