Laureate Education, Inc. · NASDAQ:LAUR
Laureate Education — Q1 2017 Earnings Presentation
26 slides from Laureate Education's earnings presentation, May 11, 2017
Slide 1: First Quarter 2017 Earnings Presentation
First Quarter 2017 Earnings Presentation May 11, 2017 1
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 meaning
Slide 3: Q1 2017 Performance Highlights
Q1 2017 PERFORMANCE HIGHLIGHTS © 2017 Laureate Education, Inc. | Confidential & Proprietary 3
Slide 4: Q1 2017 Financial Performance Highlights
Q1 2017 Financial Performance Highlights 1st Quarter 2017 Adj. Revenue EBITDA $856M $49M +3% Organic constant +22% currency growth Organic constant currency growth Total Enrollment: 1,085,100 3% growth vs. Q1 2016 (Adj. Peru flood timing) New Enrollment: 227,000 4% growth vs. Q1 2016 (Adj. Peru
Slide 5: Enrollment by Segment
Enrollment by Segment • New Enrollments for Q1 2017 increased 4% and Total Enrollments grew 3% versus Q1 2016 on an organic basis (excluding 2016 divestitures(1)) and adjusted for timing of the intake in Peru related to the floods in that country +4% New and Total Enrollment growth, adjusted for the
Slide 6: Q1 '17 vs. Q1 '16 Revenue & Adj. EBITDA Bridge
Q1 ’17 vs. Q1 ’16 Revenue & Adj. EBITDA Bridge Q1 ’17 vs. Q1 ’16 Laureate Revenue Bridge Q1 ’17 Performance Highlights ($ in USD millions) $27.8 The first quarter represents the largest enrollment $906.5 +3% $(3.3) intake for our Southern Hemisphere institutions, but $855.9 $(75.1) from a P&L pers
Slide 7: Revenue & Adj. EBITDA Bridge – LatAm Segment
Q1 ’17 vs. Q1 ’16 Revenue & Adj. EBITDA Bridge – LatAm Segment Q1 ’17 vs. Q1 ’16 Revenue Bridge Q1 ’17 Performance Highlights ($ in USD millions) Q1 ’17 LatAm New Enrollments and Total Enrollments $421.4 +3% $7.0 $403.9 $10.5 both increased 4% as compared to Q1 ’16 (adjusted for +3% timing of the
Slide 8: Revenue & Adj. EBITDA Bridge – EMEAA Segment
Q1 ’17 vs. Q1 ’16 Revenue & Adj. EBITDA Bridge – EMEAA Segment Q1 ’17 vs. Q1 ’16 Revenue Bridge Q1 ’17 Performance Highlights ($ in USD millions) $16.3 Q1 ’17 New and Total Enrollments both increased 6% +3% $244.0 versus Q1 ’16 on an organic basis (excluding the $(9.8) +7% divestiture of our Frenc
Slide 9: Revenue & Adj. EBITDA Bridge – GPS Segment
Q1 ’17 vs. Q1 ’16 Revenue & Adj. EBITDA Bridge – GPS Segment Q1 ’17 vs. Q1 ’16 Revenue Bridge Q1 ’17 Performance Highlights ($ in USD millions) $260.4 Q1 ’17 New Enrollment increased 5%, while Total $0.2 +3% $(0.5) Enrollments decreased (6%), respectively, vs. prior $208.3 year on an organic basis
Slide 10: Capital Structure
CAPITAL STRUCTURE © 2017 Laureate Education, Inc. | Confidential & Proprietary 10
Slide 11: Recent Capital Structure Actions
Recent Capital Structure Actions • In April 2017, the company completed a refinancing of its corporate debt capital structure, extending the maturity wall and reducing our cost of capital – The Company entered into a new $1.6 billion term loan facility, maturing in 2024, and a $385 million revolving
Slide 12: Pro-Forma Interest Savings
Pro-Forma Interest Savings • Application of IPO proceeds, conversion of Exchanged Notes to Class A common stock, and lower cost of capital on refinanced debt expected to yield approximately $118M in run- rate interest savings – Savings to begin in 2H 2017, with full year run-rate realization in 2018
Slide 13: 2017 Outlook & Strategic Operating Review
2017 OUTLOOK & STRATEGIC OPERATING REVIEW © 2017 Laureate Education, Inc. | Confidential & Proprietary 13
Slide 14: Q2 2017 Guidance
Q2 2017 Guidance Adjusted ($ millions, rounded) Revenue EBITDA 2Q 2016 Reported Results $1,232 $308 2016 Divestitures Impact for 2Q 2016(1) ($65) ($12) PF 2Q 2016 Baseline $1,167 $296 2Q 2017 Forecasted Constant Currency Growth Including Timing/Seasonality $66 - $96 $32 - $43 FX Impact y-o-y(2) n.m.
Slide 15: Laureate Roadmap To Achieve Financial Priorities
Laureate Roadmap To Achieve Financial Priorities 2017 Stated Financial Priorities Accelerator Plan – Launched in Q2 2017 Focus on free cash flow generation Unique global network to be leveraged Organic Growth: Rising participation Simplify Portfolio: Focus on scalable rates and supply/demand bal
Slide 16: Accelerator Plan Launched in Q2 2017: Simplify Portfolio
Accelerator Plan Launched in Q2 2017 10 countries account for ~85% of revenues 15 countries account for ~15% of revenues – 8 – 10 of these 15 countries have potential to reach scale meaningful for Laureate or can be operated as a Simplify branch of an existing market Portfolio – Remaining 5 – 7
Slide 17: Company Goals and Expected Impact on Outlook
Company Goals and Expected Impact on Outlook Accelerator Guidance for 2017 Accelerator Plan Ramp-up/Timing 4.5% - 6.0% + 1.0 - 2.0 pts from Revenue growth on an organic 2 – 3 years price/volume constant currency basis 8.0% - 10.0% 1.5% - 2.0% incremental Adjusted EBITDA growth on an organic margin i
Slide 18: Appendix
APPENDIX © 2017 Laureate Education, Inc. | Confidential & Proprietary 18
Slide 19: Seasonality: Main Enrollment Intakes
Seasonality: Main Enrollment Intakes • Q1 and Q3 are peak intake quarters, but seasonally weak earnings quarters as institutions are largely out of session during the summer season (Q1 in Southern Hemisphere; Q3 in Northern Hemisphere) • Q1 represents the large intake for our Southern Hemisphere ins
Slide 20: Intra-Year Seasonality Trends
Intra-Year Seasonality Trends • Large intake cycles at end of Q1 (Southern Hemisphere) and end of Q3 (Northern Hemisphere) drive seasonality of earnings (Q2 and Q4 are our strongest earnings quarters) Revenue Seasonality Adj. EBITDA Seasonality Academic Calendar Academic Calendar 46% 46% 29% 28% 30%
Slide 21: Financial Tables
Financial Tables Note: Dollars in millions, except per share amounts, and may not sum to total due to rounding © 2017 Laureate Education, Inc. | Confidential & Proprietary 21
Slide 22: Financial Tables
Financial Tables Note: Dollars in millions, except per share amounts, and may not sum to total due to rounding © 2017 Laureate Education, Inc. | Confidential & Proprietary 22
Slide 23: Financial Tables
Financial Tables Note: Dollars in millions, except per share amounts, and may not sum to total due to rounding © 2017 Laureate Education, Inc. | Confidential & Proprietary 23
Slide 24: Financial Tables
Financial Tables Note: Dollars in millions, except per share amounts, and may not sum to total due to rounding © 2017 Laureate Education, Inc. | Confidential & Proprietary 24
Slide 25: Financial Tables
Financial Tables Note: Dollars in millions, except per share amounts, and may not sum to total due to rounding © 2017 Laureate Education, Inc. | Confidential & Proprietary 25
Slide 26: © 2017 Laureate Education, Inc. | Confidential & Proprietary
© 2017 Laureate Education, Inc. | Confidential & Proprietary 26