Laureate Education, Inc. · NASDAQ:LAUR
Laureate Education — Q1 2024 Earnings Presentation
33 slides from Laureate Education's earnings presentation, May 2, 2024
Slide 1: First Quarter 2024 Earnings Presentation
First Quarter 2024 Earnings Presentation May 2, 2024 ©2024 Laureate Education, Inc.® | Confidential & Proprietary
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.® | Confidential & Proprietary 4
Slide 5: Executive Summary
Executive Summary First quarter Revenue and Adjusted EBITDA ahead of guidance on favorable FX rates First quarter enrollments in-line with expectations New and Total Enrollments increased 1% and 5%, respectively, versus Q1 of prior year Mexico: New Enrollments grew 7% for the secondary intak
Slide 6: ESG Leadership
ESG Leadership For more than 25 As a Public Benefit Corporation (PBC) … Our mission … years … we report annually on our impact. In 2023, our first materiality Along with our track record of assessment, led by external ESG specialists, gathered insights from expanding the middle classes in Laureate h
Slide 7: Compelling Investment Characteristics
Compelling Investment Characteristics ©2024 Laureate Education, Inc.® | Confidential & Proprietary 7
Slide 8: 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 9: Leading University Portfolio in Mexico & Peru
Leading University Portfolio in Mexico & Peru Enrollment Market QS StarsTM Brand Founded Segment Overall Ratings/Rankings @ 3/31/24 • Ranked Top 10 university in Mexico Premium/ • 5-Stars rated by QS Stars™ in categories of 1960 108,300 Traditional Employability, Inclusiveness, Online Learning & Mex
Slide 10: Q1 2024 Performance Results
Q1 2024 Performance Results ©2024 Laureate Education, Inc.® | Confidential & Proprietary 10
Slide 11: 2024 First Quarter – Financial Summary
2024 First Quarter – Financial Summary Q1 ‘24 Variance Vs. Q1 ‘23 Notes ($ in millions) (Enrollments rounded to the Results As Reported Organic/CC1 nearest thousand) • Secondary intake for Mexico: +7% New Enrollment 96K 1% 1% • Primary intake for Peru: (3%) • Mexico +9% Total Enrollment 459K 5% 5% •
Slide 12: Segment Results
Segment Results ©2024 Laureate Education, Inc.® | Confidential & Proprietary 12
Slide 13: Mexico Segment Results
Mexico Segment Results Variance Vs. Q1 ‘24 Notes Q1 ‘23 ($ in millions) (Enrollments rounded to the Results Organic/CC1 nearest thousand) • Strong results during secondary intake cycle; primary intake for New Enrollment 41K 7% Mexico will occur in September • Driven by new enrollments and strength o
Slide 14: Peru Segment Results
Peru Segment Results Variance Vs. Q1 ‘24 Notes Q1 ‘23 ($ in millions) (Enrollments rounded to the Results Organic/CC1 nearest thousand) • Intake cycle impacted by current macroeconomic conditions New Enrollment 55K (3%) • New enrollments (-2%) for the cycle, (-3%) for the reported quarter Total Enro
Slide 15: Outlook
Outlook ©2024 Laureate Education, Inc.® | Confidential & Proprietary 15
Slide 16: 2024 Outlook – Executive Summary
2024 Outlook – Executive Summary Market dynamics remain favorable for the private sector in Mexico and Peru 2024 outlook reflects differing macroeconomic conditions by market Mexico: Strong growth expectations; favorable macro backdrop including nearshoring tailwinds Peru: Growth more muted
Slide 17: Increasing Guidance to Reflect Favorable FX Rates
Increasing Guidance to Reflect Favorable FX Rates 2024 ($ in millions) (Enrollments rounded to the nearest thousand) Prior FY 2024 Outlook FX Impact Current FY 2024 Outlook1 Outlook Total Enrollment 467K – 473K - 467K – 473K – Revenue $1,553 – $1,568 +$13 $1,566 – $1,581 Updated 1 Adjusted EBITDA $4
Slide 18: Continued Growth Expected in Q2 2024
Continued Growth Expected in Q2 2024 Q2 2024 ($ in millions) Q2 2024 Outlook1 Guidance Revenue $480 – $486 Details Adjusted EBITDA $172 – $175 (1) Outlook is based on actual FX rates for January through April, and Spot FX rates (local currency per US dollar) of MXN 17.25 & PEN 3.75 for May through J
Slide 19: Appendix
Appendix ©2024 Laureate Education, Inc.® | Confidential & Proprietary 19
Slide 20: 2024 First Quarter – Net Income Reconciliation
2024 First Quarter – Net Income Reconciliation Q1 ‘24 B / (W) Notes ($ in millions) Reported Vs. Q1 ‘23 Adjusted EBITDA 31 (3) Depreciation & Amort. (18) (1) Interest Expense, net (3) 1 • Mainly non-cash FX translation loss on Other (11) 19 intercompany loans Income Tax (10) 0 Income/(Loss) From Con
Slide 21: Q1 2024 Capitalization and Return of Capital
Strong Balance Sheet and Cash Accretive Business Model Allow For Continued Return of Capital Q1 2024 ($ in millions) Total Company Capitalization as of 3/31/24 and Return of Gross Debt $228 Capital Less: Cash & Cash Equivalents ($126) Net Debt $102 Total current shares outstanding of 155M shares a
Slide 22: 2024 Full Year Guidance Details
2024 Full Year Guidance Details ($ 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) 18K - 24K $77 - $92 $27 - $37 Organic Growth % 4% - 5% 5% - 6% 6% - 9% 2024 FY Guidanc
Slide 23: Q2 2024 Guidance Details
Q2 2024 Guidance Details Q2 Guidance ($ in millions) Revenues Adj. EBITDA 2023 Q2 Results As Reported $462 $175 Timing Impact Intra-Year (academic calendar) - - 2023 Q2 Results Adjusted $462 $175 Organic Growth $21 - $27 $5 - $8 Organic Growth % (excl. Mexico restructuring) 5% - 6% 3% - 5% One-time
Slide 24: 1H and 2H Implied 2024 Guidance Details
1H and 2H Implied 2024 Guidance Details 1H Implied Guidance 2H Implied Guidance ($ in millions) Revenues Adj. EBITDA Revenues Adj. EBITDA 2023 Results As Reported $713 $209 $771 $210 Timing Impact Intra-Year (academic calendar) ($14) ($11) $14 $11 2023 Results Adjusted $699 $198 $785 $221 Organic Gr
Slide 25: 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 26: Financial Results & Tables
Financial Results & Tables ©2024 Laureate Education, Inc.® | Confidential & Proprietary 26
Slide 27: Consolidated Statements of Operations
Financial Tables Consolidated Statements of Operations For the three months ended March 31, Note: Dollars in millions, except per share amounts, and may not sum to total due to IN MILLIONS 2024 2023 Change rounding. Revenues $ 275.4 $ 251.3 $ 24.1 Costs and expenses: Direct costs 254.0 225.3 28.7 Ge
Slide 28: Revenue and Adjusted EBITDA by segment: Quarter
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 29: Consolidated Balance Sheets
Financial Tables Consolidated Balance Sheets IN MILLIONS March 31, 2024 December 31, 2023 Change Note: Dollars in millions may not sum to total due Assets to rounding. Cash and cash equivalents $ 126.2 $ 89.4 $ 36.8 Receivables (current), net 82.1 92.1 (10.0) Other current assets 53.3 42.0 11.3 Prop
Slide 30: Consolidated Statements of Cash Flows
Financial Tables Consolidated Statements of Cash Flows For the three months ended March 31, IN MILLIONS 2024 2023 Change Cash flows from operating activities Note: Dollars in millions may not sum to total due Net loss $ (10.8) $ (26.8) $ 16.0 to rounding. Depreciation and amortization 18.1 16.7 1.4
Slide 31: Non-GAAP Reconciliation (1 of 2)
Financial Tables Non-GAAP Reconciliation (1 of 2) The following table reconciles Net Loss to Adjusted EBITDA and Adjusted EBITDA margin: (1) Represents non-cash, share-based For the three months ended March 31, compensation expense pursuant to the provisions IN MILLIONS 2024 2023 Change of ASC Topic
Slide 32: Non-GAAP Reconciliation (2 of 2)
Financial Tables Non-GAAP Reconciliation (2 of 2) The following table reconciles operating cash flow to Free Cash Flow for the three months ended March 31, 2024 and 2023: Note: Dollars in millions may not sum to total due IN MILLIONS 2024 2023 Change to rounding. Net cash provided by operating activ
Slide 33: ©2024 Laureate Education, Inc.® | Confidential & Proprietary
©2024 Laureate Education, Inc.® | Confidential & Proprietary