Laureate Education, Inc. · NASDAQ:LAUR
Laureate Education — Q3 2024 Earnings Presentation
36 slides from Laureate Education's earnings presentation, Oct 31, 2024
Slide 1: Third Quarter 2024 Earnings Presentation
Third Quarter 2024 Earnings Presentation October 31, 2024 ©2024 Laureate Education, Inc.
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes statements that express Laureate’s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, ‘‘forward-looking statements’’ within the meani
Slide 3: Presentation of Non-GAAP Measures
Presentation of Non-GAAP Measures In addition to the results provided in accordance with U.S. generally accepted accounting principles (GAAP) throughout this presentation, Laureate provides the non-GAAP measurements of Adjusted EBITDA and its related margin, Adjusted EBITDA to Unlevered Free Cash Fl
Slide 4: Summary Overview
Summary Overview Note: Throughout this presentation amounts may not sum to totals due to rounding ©2024 Laureate Education, Inc. 4
Slide 5: Executive Summary
Executive Summary Third quarter Revenue and Adjusted EBITDA ahead of guidance following strong macroeconomic recovery in Peru New Enrollments in Peru +12% for Q3; through completion of the secondary intake cycle in November expected to be up 16% year-over-year Favorable operating performance y
Slide 6: Compelling Investment Characteristics
Compelling Investment Characteristics ©2024 Laureate Education, Inc. 6
Slide 7: Attractive Market Opportunities in Mexico and Peru
Attractive Market Opportunities in Mexico and Peru Attractive Markets with Significant Growth Opportunities Participation rates growing and still well below developed markets Mexico Peru Combined Population 129 million 32 million 161 million Higher Education Students (000s) 5,193 1,841 7,034 Higher
Slide 8: Leading University Portfolio in Mexico & Peru
Leading University Portfolio in Mexico & Peru Enrollment Market QS StarsTM Brand Founded Segment Overall Ratings/Rankings @ 9/30/24 • Ranked Top 5 university in Mexico Premium/ • 5-Stars rated by QS Stars™ in categories of 1960 127,000 Traditional Employability, Inclusiveness, Online Learning & Mexi
Slide 9: Q3 & YTD 2024 Performance Results
Q3 & YTD 2024 Performance Results ©2024 Laureate Education, Inc. 9
Slide 10: 2024 Third Quarter – Financial Summary
2024 Third Quarter – Financial Summary Q3 ’24 Variance Vs. Q3 ’23 Notes ($ in millions) (Enrollments rounded to the Results As Reported Organic/CC1 nearest thousand) • Mexico +4% New Enrollment 122K 6% 6% • Peru +12% driven by macroeconomic recovery • Mexico +7%, Peru +3% Total Enrollment 483K 5% 5%
Slide 11: 2024 Q3 YTD – Financial Summary
2024 Q3 YTD – Financial Summary Q3 YTD ’24 Variance Vs. Q3 YTD ’23 Notes ($ in millions) (Enrollments rounded to the Results As Reported Organic/CC1 nearest thousand) • Mexico +4% New Enrollment 242K 4% 4% • Peru +4% • Mexico +7%, Peru +3% Total Enrollment 483K 5% 5% • Driven by new enrollment growt
Slide 12: Segment Results
Segment Results ©2024 Laureate Education, Inc. 12
Slide 13: Mexico Segment Results
Mexico Segment Results Q3 Results Q3 YTD Results Notes ($ in millions) Organic/CC Vs. Organic/CC Vs. (Enrollments rounded to Q3 ’24 Q3 YTD ’24 the nearest thousand) Q3 ’23 1 Q3 YTD ’23 1 • +3% YoY growth expected for the completion New Enrollment 91K 4% 152K 4% of the intake cycle in November; +4% e
Slide 14: Peru Segment Results
Peru Segment Results Q3 Results Q3 YTD Results Notes ($ in millions) Organic/CC Vs. Organic/CC Vs. (Enrollments rounded to Q3 ’24 Q3 YTD ’24 the nearest thousand) Q3 ’23 1 Q3 YTD ’23 1 • Strong secondary intake across all brands following macroeconomic recovery New Enrollment 31K 12% 89K 4% • +16% Y
Slide 15: Capitalization and Share Count
Capitalization and Share Count ©2024 Laureate Education, Inc. 15
Slide 16: Q3 2024 Capitalization and Return of Capital
Strong Balance Sheet and Cash Accretive Business Model Allow For Continued Return of Capital Q3 2024 ($ in millions) Total Company Capitalization as of 9/30/24 and Return of Gross Debt $155 Capital Less: Cash & Cash Equivalents ($134) Net Debt $20 151M shares outstanding as of September 30th Sha
Slide 17: Outlook
Outlook ©2024 Laureate Education, Inc.® | Confidential & Proprietary 17
Slide 18: 2024 Outlook – Executive Summary
2024 Outlook – Executive Summary Market dynamics remain favorable for the private sector in Mexico and Peru 2024 Revenue growth expected at 5% Vs. 20231 (up 7% on an organic constant currency basis2) 2024 Adjusted EBITDA growth expected at 7%-8% Vs. 20231 (up 9%-10% on an organic constant curr
Slide 19: Improved Constant Currency Outlook Expected to Cover FX Headwinds
Improved Constant Currency Outlook Expected to Cover FX Headwinds (narrowing of range) 2024 ($ in millions) (Enrollments rounded to the nearest Prior FY 2024 Operational Change FX Impact Current FY 2024 Outlook thousand) Outlook (mid-point) (mid-point) Outlook1 Total Enrollment 467K – 473K - - Appro
Slide 20: Q4 2024 Guidance
Q4 2024 ($ in millions) Q4 2024 Outlook1 Guidance Revenue $408 – $413 Adjusted EBITDA $138 – $142 (1) Outlook is based on actual FX rates for October and Spot FX rates (local currency per US dollar) of MXN 20.20 & PEN 3.77 for November through December 2024. FX impact may change based on fluctuation
Slide 21: Appendix
Appendix ©2024 Laureate Education, Inc. 21
Slide 22: 2024 Third Quarter – Net Income Reconciliation
2024 Third Quarter – Net Income Reconciliation Q3 ’24 B / (W) Notes ($ in millions) Reported Vs. Q3 ’23 Adjusted EBITDA 91 13 Depreciation & Amortization (17) 1 Interest Expense, net (3) - • Mainly non-cash FX translation on Other 13 1 intercompany loans Income Tax 1 34 • One time benefit Income/(Lo
Slide 23: 2024 Q3 YTD – Net Income Reconciliation
2024 Q3 YTD – Net Income Reconciliation Q3 YTD ’24 B / (W) Notes ($ in millions) Reported Vs. Q3 YTD ’23 Adjusted EBITDA 309 22 Depreciation & Amortization (52) - Interest Expense, net (9) 2 • Mainly non-cash FX translation on Other 27 81 intercompany loans Income Tax (73) 29 • One time benefit Inco
Slide 24: 2024 Full Year Guidance Details
2024 Full Year Guidance Details ($ in millions) (Enrollments rounded to the nearest thousand) Total Enrollment Revenues Adj. EBITDA 2023 FY Results As Reported 449K $1,484 $419 Organic Growth (incl. Restructuring) Approx. 21K $97 - $102 $36 - $40 Organic Growth % Approx. 5% 7% 9% - 10% 2024 FY Guida
Slide 25: Q4 2024 Guidance Details
Q4 2024 Guidance Details Q4 Guidance ($ in millions) Revenues Adj. EBITDA 2023 Q4 Results As Reported $409 $131 Timing Impact Intra-Year (academic calendar) $10 $7 2023 Q4 Results Adjusted $419 $138 Organic Growth $20 - $25 $10 - $14 Organic Growth % (excl. Mexico restructuring) 5% - 6% 7% - 10% 202
Slide 26: Return of Capital Summary Since 2019
Return of Capital Summary Since 2019 Cash Stock Distributions / ($ in millions) Buybacks Dividends Total 2019 $264 - $264 2020 $100 - $100 2021 $380 $1,375 $1,755 2022 $282 $249 $531 2023 - $110 $110 YTD Sept 2024 $100 - $100 Cumulative Since 2019 $1,126 $1,734 $2,860 Strong Track Record of Returnin
Slide 27: Intra-Year Seasonality Trends
Intra-Year Seasonality Trends Revenue Seasonality Adjusted EBITDA Seasonality 46% 44% 31% 31% 42% 43% 42% 30% 30% 28% 27% 28% 28% 30% 31% 24% 25% 24% 24% 28% 24% 24% 21% 19% 18% 19% 17% 17% 8% 8% 4% (14%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2022 2023 2020 2021 2022 2023 New Enrollments Seasonality Fac
Slide 28: Financial Results & Tables
Financial Results & Tables ©2024 Laureate Education, Inc. 28
Slide 29: Financial Tables
Financial Tables Consolidated Statements of Operations For the three months ended September 30, For the nine months ended September 30, Note: Dollars in millions, except per share IN MILLIONS (except per share amounts) 2024 2023 Change 2024 2023 Change amounts, may not sum to total due to rounding.
Slide 30: Financial Tables
Financial Tables Revenue and Adjusted EBITDA by segment: Quarter IN MILLIONS nm - percentage changes not meaningful % Change $ Variance Components (1) Organic Constant Currency results exclude the Organic Organic period-over-period impact from currency For the three months ended Constant Constant fl
Slide 31: Financial Tables
Financial Tables Revenue and Adjusted EBITDA by segment: Year-to-Date IN MILLIONS nm - percentage changes not meaningful % Change $ Variance Components (2) Organic Constant Currency results exclude the Organic Organic period-over-period impact from currency For the nine months ended Constant Constan
Slide 32: Financial Tables
Financial Tables Consolidated Balance Sheets IN MILLIONS September 30, 2024 December 31, 2023 Change Note: Dollars in millions may not sum to total due Assets to rounding. Cash and cash equivalents $ 134.4 $ 89.4 $ 45.0 Receivables (current), net 91.2 92.1 (0.9) Other current assets 34.8 42.0 (7.2)
Slide 33: Financial Tables
Financial Tables Consolidated Statements of Cash Flows For the nine months ended September 30, IN MILLIONS 2024 2023 Change Note: Dollars in millions may not sum to total due to rounding. Cash flows from operating activities Net income $ 202.8 $ 65.5 $ 137.3 Depreciation and amortization 52.1 52.0 0
Slide 34: Financial Tables
Financial Tables Non-GAAP Reconciliation (1 of 2) The following table reconciles Net Income to Adjusted EBITDA and Adjusted EBITDA margin: For the three months ended September 30, For the nine months ended September 30, (3) Represents non-cash, share-based IN MILLIONS 2024 2023 Change 2024 2023 Chan
Slide 35: Financial Tables
Financial Tables Non-GAAP Reconciliation (2 of 2) The following table reconciles operating cash flow to Free Cash Flow for the nine months ended September 30, 2024 and 2023: Note: Dollars in millions may not sum to total due to rounding. IN MILLIONS 2024 2023 Change Net cash provided by operating ac
Slide 36: ©2024 Laureate Education, Inc.
©2024 Laureate Education, Inc.