Laureate Education Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2024
Laureate Education (NASDAQ: LAUR) reported strong financial results for Q2 2024. Revenue increased 8% to $499.2 million, with a 7% increase on an organic constant currency basis. Net income rose to $128.4 million, up from $56.3 million in Q2 2023, primarily due to favorable foreign currency exchange rates. Adjusted EBITDA grew to $186.9 million, compared to $175.4 million in the prior year.
For the first half of 2024, new enrollments increased 2% and total enrollments rose 5%. Revenue for this period grew 9% to $774.6 million. The company maintains a strong balance sheet with $128.8 million in cash and $232.6 million in gross debt. Laureate has repurchased approximately $72 million of its common stock during the first half of 2024.
Laureate Education (NASDAQ: LAUR) ha riportato risultati finanziari solidi per il secondo trimestre del 2024. Il fatturato è aumentato dell'8% per raggiungere 499,2 milioni di dollari, con un incremento del 7% su base organica e a cambi costanti. Il reddito netto è salito a 128,4 milioni di dollari, rispetto ai 56,3 milioni di dollari del secondo trimestre del 2023, principalmente a causa di tassi di cambio favorevoli. L'EBITDA rettificato è cresciuto fino a 186,9 milioni di dollari, rispetto ai 175,4 milioni di dollari dell'anno precedente.
Per la prima metà del 2024, i nuovi iscritti sono aumentati del 2% e il totale degli iscritti è cresciuto del 5%. Il fatturato per questo periodo è aumentato del 9% a 774,6 milioni di dollari. L'azienda mantiene un solido bilancio con 128,8 milioni di dollari in contante e 232,6 milioni di dollari di debito lordo. Laureate ha riacquistato circa 72 milioni di dollari delle proprie azioni ordinarie durante la prima metà del 2024.
Laureate Education (NASDAQ: LAUR) reportó resultados financieros sólidos para el segundo trimestre de 2024. Los ingresos aumentaron un 8% a 499,2 millones de dólares, con un incremento del 7% en términos orgánicos y a tipos de cambio constantes. El ingreso neto creció a 128,4 millones de dólares, frente a los 56,3 millones de dólares del segundo trimestre de 2023, principalmente debido a tasas de cambio favorables. El EBITDA ajustado creció hasta 186,9 millones de dólares, en comparación con los 175,4 millones de dólares del año anterior.
En la primera mitad de 2024, las nuevas inscripciones aumentaron un 2% y el total de inscripciones creció un 5%. Los ingresos de este período crecieron un 9% hasta 774,6 millones de dólares. La empresa mantiene un balance sólido con 128,8 millones de dólares en efectivo y 232,6 millones de dólares en deuda bruta. Laureate ha recomprado aproximadamente 72 millones de dólares de sus acciones comunes durante la primera mitad de 2024.
로레이트 에듀케이션 (NASDAQ: LAUR)은 2024년 2분기 강력한 재무 결과를 보고했습니다. 매출은 8% 증가하여 4억 9,920만 달러에 달했으며, 유기적 상수 통화 기준으로 7% 증가했습니다. 순이익은 1억 2,840만 달러로 상승했습니다, 이는 2023년 2분기 5,630만 달러에서 증가한 수치로, 주로 유리한 외환환율 때문입니다. 조정된 EBITDA는 1억 8,690만 달러로 성장했습니다, 지난해 1억 7,540만 달러와 비교할 때입니다.
2024년 상반기 동안, 신규 등록이 2% 증가했습니다 그리고 전체 등록이 5% 증가했습니다. 이 기간의 매출은 9% 증가하여 7억 7,460만 달러에 달했습니다. 회사는 1억 2,880만 달러의 현금과 2억 3,260만 달러의 총 부채로 강력한 대차대조표를 유지하고 있습니다. 로레이트는 2024년 상반기 동안 약 7,200만 달러의 자사주를 재매입했습니다.
Laureate Education (NASDAQ: LAUR) a annoncé des résultats financiers solides pour le deuxième trimestre 2024. Le chiffre d'affaires a augmenté de 8% pour atteindre 499,2 millions de dollars, avec une hausse de 7% sur une base organique à changes constants. Le revenu net a augmenté à 128,4 millions de dollars, contre 56,3 millions de dollars au deuxième trimestre 2023, principalement en raison de taux de change favorables. Le EBITDA ajusté a crû à 186,9 millions de dollars, par rapport à 175,4 millions de dollars l'année précédente.
Pour la première moitié de 2024, les nouvelles inscriptions ont augmenté de 2% et le nombre total d'inscriptions a augmenté de 5%. Les revenus pour cette période ont augmenté de 9% pour atteindre 774,6 millions de dollars. L'entreprise maintient un bilan solide avec 128,8 millions de dollars en espèces et 232,6 millions de dollars de dettes brutes. Laureate a racheté environ 72 millions de dollars de ses actions ordinaires durant la première moitié de 2024.
Laureate Education (NASDAQ: LAUR) berichtete über starke Finanzergebnisse für das 2. Quartal 2024. Die Einnahmen stiegen um 8% auf 499,2 Millionen Dollar, mit einem Anstieg von 7% auf Organic-Basis bei konstanten Wechselkursen. Der Nettogewinn stieg auf 128,4 Millionen Dollar, gegenüber 56,3 Millionen Dollar im 2. Quartal 2023, was hauptsächlich auf günstige Wechselkurse zurückzuführen ist. Das bereinigte EBITDA wuchs auf 186,9 Millionen Dollar im Vergleich zu 175,4 Millionen Dollar im Vorjahr.
In der ersten Hälfte des Jahres 2024 stieg die Anzahl der Neuanmeldungen um 2% und die Gesamtzahl der Anmeldungen wuchs um 5%. Der Umsatz für diesen Zeitraum wuchs um 9% auf 774,6 Millionen Dollar. Das Unternehmen verfügt über eine starke Bilanz mit 128,8 Millionen Dollar in bar und 232,6 Millionen Dollar in Bruttoverschuldung. Laureate hat in der ersten Hälfte des Jahres 2024 etwa 72 Millionen Dollar eigener Aktien zurückgekauft.
- Revenue increased 8% to $499.2 million in Q2 2024
- Net income rose to $128.4 million in Q2 2024, up from $56.3 million in Q2 2023
- Adjusted EBITDA grew to $186.9 million in Q2 2024, compared to $175.4 million in Q2 2023
- New enrollments increased 2% and total enrollments rose 5% for the first half of 2024
- Strong balance sheet with $128.8 million in cash and $232.6 million in gross debt
- Repurchased approximately $72 million of common stock during the first half of 2024
- Muted growth in Peru over the past 12 months
- Adjusted EBITDA for the first half of 2024 was unfavorably affected by intra-year timing of semester start dates
Insights
Laureate Education's Q2 2024 results demonstrate solid financial performance and growth. Revenue increased
The company's profitability metrics are particularly impressive. Operating income rose to
Adjusted EBITDA, a key metric for operational performance, increased to
The company's balance sheet remains strong, with
Looking ahead, Laureate's outlook for 2024 remains positive, with expected enrollment growth of
However, investors should be aware of potential currency risks, as evidenced by the recent volatility in the Mexican peso affecting the company's as-reported guidance. Overall, Laureate's financial performance and outlook suggest a company well-positioned for continued growth in the higher education sector in its target markets.
Laureate Education's Q2 2024 results reveal intriguing trends in the higher education markets of Mexico and Peru. The
Mexico emerges as the star performer, with new enrollments up
In contrast, Peru's performance is more subdued, with flat new enrollments and a modest
The overall
Laureate's ability to maintain strong growth in a focused portfolio of five institutions across two countries demonstrates the effectiveness of its targeted strategy. The company's success in these markets could attract increased competition, but also positions Laureate as a potential consolidator in the fragmented Latin American higher education landscape.
As the company continues to emphasize growth in Mexico while working to revitalize its Peruvian operations, investors should monitor enrollment trends, pricing power and any regulatory changes that could impact the private education sector in these countries. The projected
MIAMI, Aug. 01, 2024 (GLOBE NEWSWIRE) -- Laureate Education, Inc. (NASDAQ: LAUR), which operates five higher education institutions across Mexico and Peru, today announced financial results for the second quarter and six months ended June 30, 2024.
Second Quarter 2024 Highlights (compared to second quarter 2023):
- On a reported basis, revenue increased
8% to$499.2 million . On an organic constant currency basis1, revenue increased7% . - Operating income for the second quarter of 2024 was
$166.6 million , compared to operating income of$154.5 million for the second quarter of 2023. - Net income for the second quarter of 2024 was
$128.4 million , compared to net income of$56.3 million for the second quarter of 2023. The increase in net income was mainly driven by the effect of changes in foreign currency exchange rates on intercompany balances compared to the 2023 quarter. - Adjusted EBITDA for the second quarter of 2024 was
$186.9 million , compared to Adjusted EBITDA of$175.4 million for the second quarter of 2023.
Six Months Ended June 30, 2024 Highlights (compared to six months ended June 30, 2023):
- New enrollments increased
2% . - Total enrollments increased
5% . - On a reported basis, revenue increased
9% to$774.6 million . On an organic constant currency basis1, revenue increased5% and was unfavorably affected by intra-year timing of semester start dates for certain programs as compared to the prior-year period. - Operating income for the six months ended June 30, 2024 was
$177.7 million , compared to operating income of$170.1 million for the six months ended June 30, 2023. - Net income for the six months ended June 30, 2024 was
$117.5 million , compared to net income of$29.6 million for the six months ended June 30, 2023. The increase in net income was mainly driven by the effect of changes in foreign currency exchange rates on intercompany balances compared to the 2023 period. - Adjusted EBITDA for the six months ended June 30, 2024 was
$217.5 million , compared to Adjusted EBITDA of$208.9 million for the six months ended June 30, 2023. Adjusted EBITDA for the six months ended June 30, 2024 was unfavorably affected by intra-year timing of semester start dates for certain programs as compared to the prior-year period.
Eilif Serck-Hanssen, President and Chief Executive Officer, said, “We are pleased with our solid operating results for the second quarter. Market dynamics remain favorable for the private sector in both our geographies. We continue to deliver strong growth in Mexico, while muted growth in Peru over the past 12 months is expected to pivot to a recovery in the second half of this year. In addition, our strong balance sheet and significant cash flow generation allow for a continued emphasis on returning capital to shareholders.”
1 Organic constant currency results exclude the period-over-period impact from currency fluctuations, acquisitions and divestitures.
Second Quarter 2024 Results
For the second quarter of 2024, revenue on a reported basis was
Adjusted EBITDA for the second quarter of 2024 was
Six Months Ended June 30, 2024 Results
New enrollments for the six months ended June 30, 2024 increased
For the six months ended June 30, 2024, revenue on a reported basis was
Adjusted EBITDA for the six months ended June 30, 2024 was
Balance Sheet and Capital Structure
Laureate has a strong balance sheet position. As of June 30, 2024, Laureate had
Laureate has repurchased approximately
As of June 30, 2024, Laureate had 152.5 million total shares outstanding.
Outlook for Fiscal 2024
Laureate is maintaining its full-year constant currency outlook but adjusting its as-reported guidance to reflect more recent foreign currency rates, impacted by recent volatility in the Mexican peso.
Based on the current foreign exchange spot rates2, Laureate expects its full-year 2024 results to be as follows:
- Total enrollments are still expected to be in the range of 467,000 to 473,000 students, reflecting growth of
4% -5% versus 2023; - Revenues are now expected to be in the range of
$1,551 million to$1,566 million , reflecting growth of5% -6% on an as-reported basis and5% -6% on an organic constant currency basis versus 2023; and - Adjusted EBITDA is now expected to be in the range of
$441 million to$451 million , reflecting growth of5% -8% on an as-reported basis and6% -9% on an organic constant currency basis versus 2023.
Reconciliations of forward-looking non-GAAP measures, specifically the 2024 Adjusted EBITDA outlook, to the relevant forward-looking GAAP measures are not being provided, as Laureate does not currently have sufficient data to accurately estimate the variables and individual adjustments for such outlooks and reconciliations. Due to this uncertainty, the Company cannot reconcile projected Adjusted EBITDA to projected net income without unreasonable effort.
Please see the “Forward-Looking Statements” section in this release for a discussion of certain risks related to this outlook.
Conference Call
Laureate will host an earnings conference call today at 8:30 am ET. Interested parties are invited to listen to the earnings call by registering at https://bit.ly/LAURQ22024 to receive dial-in information. The webcast of the conference call, including replays, and a copy of this press release and the related slides will be made available through the Investor Relations section of Laureate’s website at www.laureate.net.
2 Based on actual FX rates for January-July 2024, and current spot FX rates (local currency per U.S. Dollar) of MXN 18.70 and PEN 3.75 for August 2024 - December 2024. FX impact may change based on fluctuations in currency rates in future periods.
Forward-Looking Statements
This press release 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 of the federal securities laws, which involve risks and uncertainties. Laureate’s actual results may vary significantly from the results anticipated in these forward-looking statements. You can identify forward-looking statements because they contain words such as ‘‘believes,’’ ‘‘expects,’’ ‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘seeks,’’ ‘‘approximately,’’ ‘‘intends,’’ ‘‘plans,’’ ‘‘estimates’’ or ‘‘anticipates’’ or similar expressions that concern our strategy, plans or intentions. In particular, statements regarding the amount, timing, process, tax treatment and impact of any future dividends represent forward-looking statements. All statements we make relating to guidance (including, but not limited to, total enrollments, revenues, and Adjusted EBITDA), and all statements we make relating to our current growth strategy and other future plans, strategies or transactions that may be identified, explored or implemented and any litigation or dispute resulting from any completed transaction are forward-looking statements. In addition, we, through our senior management, from time to time make forward-looking public statements concerning our expected future operations and performance and other developments. All of these forward-looking statements are subject to risks and uncertainties that may change at any time, including with respect to our current growth strategy and the impact of any completed divestiture or separation transaction on our remaining businesses. Accordingly, our actual results may differ materially from those we expected. We derive most of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and, of course, it is impossible for us to anticipate all factors that could affect our actual results. Important factors that could cause actual results to differ materially from our expectations are disclosed in our Annual Report on Form 10-K filed with the SEC on February 22, 2024, our subsequent Quarterly Reports on Form 10-Q filed, and to be filed, with the SEC and other filings made with the SEC. These forward-looking statements speak only as of the time of this release and we do not undertake to publicly update or revise them, whether as a result of new information, future events or otherwise, except as required by law.
Presentation of Non-GAAP Measures
In addition to the results provided in accordance with U.S. generally accepted accounting principles (GAAP) throughout this press release, Laureate provides the non-GAAP measurements of Adjusted EBITDA, and total debt, net of cash and cash equivalents (or net debt). We have included these non-GAAP measurements because they are key measures used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans.
Adjusted EBITDA consists of net income (loss), adjusted for the items included in the accompanying reconciliation. The exclusion of certain expenses in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business. Additionally, Adjusted EBITDA is a key input into the formula used by the compensation committee of our board of directors and our Chief Executive Officer in connection with the payment of incentive compensation to our executive officers and other members of our management team. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.
Total debt, net of cash and cash equivalents (or net debt) consists of total gross debt, less total cash and cash equivalents. Net debt provides a useful indicator about Laureate’s leverage and liquidity.
Laureate’s calculations of Adjusted EBITDA, and total debt, net of cash and cash equivalents (or net debt) are not necessarily comparable to calculations performed by other companies and reported as similarly titled measures. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. Adjusted EBITDA is reconciled from the GAAP measure in the attached table “Non-GAAP Reconciliation.”
We evaluate our results of operations on both an as reported and an organic constant currency basis. The organic constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates, acquisitions and divestitures. We believe that providing organic constant currency information provides valuable supplemental information regarding our results of operations, consistent with how we evaluate our performance. We calculate organic constant currency amounts using the change from prior-period average foreign exchange rates to current-period average foreign exchange rates, as applied to local-currency operating results for the current period, and then exclude the impact of acquisitions and divestitures as per the accompanying presentation.
About Laureate Education, Inc.
Laureate Education, Inc. operates five higher education institutions across Mexico and Peru, enrolling approximately 450,000 students in high-quality undergraduate, graduate, and specialized degree programs through campus-based and online learning. Our universities have a deep commitment to academic quality and innovation, strive for market-leading employability outcomes, and work to make higher education more accessible. At Laureate, we know that when our students succeed, countries prosper, and societies benefit. Learn more at laureate.net.
Key Metrics and Financial Tables
(Dollars in millions, except per share amounts, and may not sum due to rounding)
New and Total Enrollments by segment
New Enrollments | Total Enrollments | ||||||||||||
YTD 2Q 2024 | YTD 2Q 2023 | Change | As of 06/30/2024 | As of 06/30/2023 | Change | ||||||||
Mexico | 61,700 | 59,200 | 4 | % | 223,000 | 205,100 | 9 | % | |||||
Peru | 58,600 | 58,800 | — | % | 221,200 | 219,300 | 1 | % | |||||
Laureate | 120,300 | 118,000 | 2 | % | 444,200 | 424,400 | 5 | % |
Consolidated Statements of Operations
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
IN MILLIONS (except per share amounts) | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||
Revenues | $ | 499.2 | $ | 462.1 | $ | 37.1 | $ | 774.6 | $ | 713.3 | $ | 61.3 | |||||||||||
Costs and expenses: | |||||||||||||||||||||||
Direct costs | 319.0 | 294.0 | 25.0 | 573.0 | 519.3 | 53.7 | |||||||||||||||||
General and administrative expenses | 13.7 | 12.0 | 1.7 | 23.9 | 22.3 | 1.6 | |||||||||||||||||
Loss on impairment of assets | — | 1.6 | (1.6 | ) | — | 1.6 | (1.6 | ) | |||||||||||||||
Operating income | 166.6 | 154.5 | 12.1 | 177.7 | 170.1 | 7.6 | |||||||||||||||||
Interest income | 2.0 | 2.0 | — | 3.9 | 4.1 | (0.2 | ) | ||||||||||||||||
Interest expense | (5.1 | ) | (6.1 | ) | 1.0 | (9.8 | ) | (12.1 | ) | 2.3 | |||||||||||||
Other income (expense), net | 0.1 | (0.1 | ) | 0.2 | (0.4 | ) | 0.1 | (0.5 | ) | ||||||||||||||
Foreign currency exchange gain (loss), net | 27.5 | (32.4 | ) | 59.9 | 21.8 | (61.3 | ) | 83.1 | |||||||||||||||
(Loss) gain on disposal of subsidiaries, net | — | — | — | (3.1 | ) | 0.3 | (3.4 | ) | |||||||||||||||
Income from continuing operations before income taxes | 191.0 | 117.8 | 73.2 | 190.2 | 101.3 | 88.9 | |||||||||||||||||
Income tax expense | (63.1 | ) | (57.5 | ) | (5.6 | ) | (73.0 | ) | (67.7 | ) | (5.3 | ) | |||||||||||
Income from continuing operations | 128.0 | 60.4 | 67.6 | 117.2 | 33.6 | 83.6 | |||||||||||||||||
Income (loss) from discontinued operations, net of tax | 0.4 | (4.0 | ) | 4.4 | 0.3 | (4.1 | ) | 4.4 | |||||||||||||||
Net income | 128.4 | 56.3 | 72.1 | 117.5 | 29.6 | 87.9 | |||||||||||||||||
Net income attributable to noncontrolling interests | (0.2 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | — | (0.1 | ) | ||||||||||||
Net income attributable to Laureate Education, Inc. | $ | 128.1 | $ | 56.2 | $ | 71.9 | $ | 117.4 | $ | 29.6 | $ | 87.8 | |||||||||||
Basic and diluted earnings per share: | |||||||||||||||||||||||
Basic weighted average shares outstanding | 153.8 | 157.2 | (3.4 | ) | 155.4 | 157.2 | (1.8 | ) | |||||||||||||||
Diluted weighted average shares outstanding | 154.4 | 157.6 | (3.2 | ) | 156.0 | 157.6 | (1.6 | ) | |||||||||||||||
Basic and diluted earnings per share | $ | 0.83 | $ | 0.35 | $ | 0.48 | $ | 0.75 | $ | 0.18 | $ | 0.57 |
Revenue and Adjusted EBITDA by segment
IN MILLIONS | ||||||||||||||||||||||||||
% Change | $ Variance Components | |||||||||||||||||||||||||
For the three months ended June 30, | 2024 | 2023 | Reported | Organic Constant Currency(1) | Total | Organic Constant Currency | Acq/Div. | FX | ||||||||||||||||||
Revenues | ||||||||||||||||||||||||||
Mexico | $ | 218.6 | $ | 192.1 | $ | 26.5 | $ | 19.7 | $ | — | $ | 6.8 | ||||||||||||||
Peru | 280.6 | 270.0 | 10.6 | 12.8 | — | (2.2 | ) | |||||||||||||||||||
Corporate & Eliminations | — | (0.1 | ) | 0.1 | 0.1 | — | — | |||||||||||||||||||
Total Revenues | $ | 499.2 | $ | 462.1 | $ | 37.1 | $ | 32.5 | $ | — | $ | 4.6 | ||||||||||||||
Adjusted EBITDA | ||||||||||||||||||||||||||
Mexico | $ | 48.2 | $ | 38.2 | $ | 10.0 | $ | 8.0 | $ | — | $ | 2.0 | ||||||||||||||
Peru | 150.3 | 147.2 | 3.1 | 4.2 | — | (1.1 | ) | |||||||||||||||||||
Corporate & Eliminations | (11.6 | ) | (10.0 | ) | (16)% | (16)% | (1.6 | ) | (1.6 | ) | — | — | ||||||||||||||
Total Adjusted EBITDA | $ | 186.9 | $ | 175.4 | $ | 11.5 | $ | 10.6 | $ | — | $ | 0.9 |
% Change | $ Variance Components | |||||||||||||||||||||||||
For the six months ended June 30, | 2024 | 2023 | Reported | Organic Constant Currency(1) | Total | Organic Constant Currency | Acq/Div. | FX | ||||||||||||||||||
Revenues | ||||||||||||||||||||||||||
Mexico | $ | 432.7 | $ | 374.1 | $ | 58.6 | $ | 32.5 | $ | — | $ | 26.1 | ||||||||||||||
Peru | 341.9 | 339.2 | 2.7 | 3.8 | — | (1.1 | ) | |||||||||||||||||||
Corporate & Eliminations | 0.1 | — | nm | nm | 0.1 | 0.1 | — | — | ||||||||||||||||||
Total Revenues | $ | 774.6 | $ | 713.3 | $ | 61.3 | $ | 36.3 | $ | — | $ | 25.0 | ||||||||||||||
Adjusted EBITDA | ||||||||||||||||||||||||||
Mexico | $ | 108.1 | $ | 87.1 | $ | 21.0 | $ | 13.6 | $ | — | $ | 7.4 | ||||||||||||||
Peru | 129.6 | 140.7 | (8)% | (7)% | (11.1 | ) | (9.7 | ) | — | (1.4 | ) | |||||||||||||||
Corporate & Eliminations | (20.2 | ) | (19.0 | ) | (6)% | (6)% | (1.2 | ) | (1.2 | ) | — | — | ||||||||||||||
Total Adjusted EBITDA | $ | 217.5 | $ | 208.9 | $ | 8.6 | $ | 2.6 | $ | — | $ | 6.0 |
nm - percentage changes not meaningful
(1) Organic Constant Currency results exclude the period-over-period impact from currency fluctuations, acquisitions and divestitures. Organic Constant Currency is calculated using the change from prior-period average foreign exchange rates to current-period average foreign exchange rates, as applied to local-currency operating results for the current period. The “Organic Constant Currency” percentage changes are calculated by dividing the Organic Constant Currency amounts by the 2023 Revenues and Adjusted EBITDA amounts, excluding the impact of the divestitures.
Consolidated Balance Sheets
IN MILLIONS | June 30, 2024 | December 31, 2023 | Change | ||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 128.8 | $ | 89.4 | $ | 39.4 | |||||
Receivables (current), net | 117.5 | 92.1 | 25.4 | ||||||||
Other current assets | 41.7 | 42.0 | (0.3 | ) | |||||||
Property and equipment, net | 526.6 | 562.2 | (35.6 | ) | |||||||
Operating lease right-of-use assets, net | 333.5 | 371.6 | (38.1 | ) | |||||||
Goodwill and other intangible assets | 781.5 | 830.7 | (49.2 | ) | |||||||
Deferred income taxes | 67.2 | 71.4 | (4.2 | ) | |||||||
Other long-term assets | 46.1 | 49.9 | (3.8 | ) | |||||||
Current and long-term assets held for sale | 18.8 | 16.3 | 2.5 | ||||||||
Total assets | $ | 2,061.8 | $ | 2,125.6 | $ | (63.8 | ) | ||||
Liabilities and stockholders' equity | |||||||||||
Accounts payable and accrued expenses | $ | 190.4 | $ | 209.4 | $ | (19.0 | ) | ||||
Deferred revenue and student deposits | 61.4 | 69.4 | (8.0 | ) | |||||||
Total operating leases, including current portion | 372.4 | 417.6 | (45.2 | ) | |||||||
Total long-term debt, including current portion | 230.4 | 165.1 | 65.3 | ||||||||
Other liabilities | 279.1 | 303.6 | (24.5 | ) | |||||||
Current and long-term liabilities held for sale | 10.9 | 11.5 | (0.6 | ) | |||||||
Total liabilities | 1,144.6 | 1,176.5 | (31.9 | ) | |||||||
Redeemable equity | 1.4 | 1.4 | — | ||||||||
Total stockholders' equity | 915.8 | 947.7 | (31.9 | ) | |||||||
Total liabilities and stockholders' equity | $ | 2,061.8 | $ | 2,125.6 | $ | (63.8 | ) |
Consolidated Statements of Cash Flows
For the six months ended June 30, | |||||||||||
IN MILLIONS | 2024 | 2023 | Change | ||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | 117.5 | $ | 29.6 | $ | 87.9 | |||||
Depreciation and amortization | 35.5 | 34.0 | 1.5 | ||||||||
Loss on sales and disposal of subsidiaries and property and equipment, net | 2.9 | 5.7 | (2.8 | ) | |||||||
Deferred income taxes | (0.2 | ) | (6.9 | ) | 6.7 | ||||||
Unrealized foreign currency exchange (gain) loss | (23.4 | ) | 61.3 | (84.7 | ) | ||||||
Income tax receivable/payable, net | (17.9 | ) | (1.7 | ) | (16.2 | ) | |||||
Working capital, excluding tax accounts | (85.2 | ) | (71.3 | ) | (13.9 | ) | |||||
Other non-cash adjustments | 44.2 | 28.1 | 16.1 | ||||||||
Net cash provided by operating activities | 73.4 | 78.8 | (5.4 | ) | |||||||
Cash flows from investing activities | |||||||||||
Purchase of property and equipment | (26.6 | ) | (14.9 | ) | (11.7 | ) | |||||
Receipts from sales of property and equipment | 3.3 | 0.1 | 3.2 | ||||||||
Net receipts from sales of discontinued operations | 0.8 | 0.3 | 0.5 | ||||||||
Net cash used in investing activities | (22.6 | ) | (14.5 | ) | (8.1 | ) | |||||
Cash flows from financing activities | |||||||||||
Increase (decrease) in long-term debt, net | 66.5 | (44.2 | ) | 110.7 | |||||||
Payments to repurchase common stock | (71.4 | ) | — | (71.4 | ) | ||||||
Financing other, net | (3.4 | ) | (1.5 | ) | (1.9 | ) | |||||
Net cash used in financing activities | (8.3 | ) | (45.7 | ) | 37.4 | ||||||
Effects of exchange rate changes on Cash and cash equivalents and Restricted cash | (3.0 | ) | 8.7 | (11.7 | ) | ||||||
Change in cash included in current assets held for sale | — | (0.6 | ) | 0.6 | |||||||
Net change in Cash and cash equivalents and Restricted cash | 39.6 | 26.7 | 12.9 | ||||||||
Cash and cash equivalents and Restricted cash at beginning of period | 96.9 | 93.8 | 3.1 | ||||||||
Cash and cash equivalents and Restricted cash at end of period | $ | 136.5 | $ | 120.5 | $ | 16.0 |
Non-GAAP Reconciliation
The following table reconciles Net income to Adjusted EBITDA:
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
IN MILLIONS | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||
Net income | $ | 128.4 | $ | 56.3 | $ | 72.1 | $ | 117.5 | $ | 29.6 | $ | 87.9 | |||||||||||
Plus: | |||||||||||||||||||||||
(Income) loss from discontinued operations, net of tax | (0.4 | ) | 4.0 | (4.4 | ) | (0.3 | ) | 4.1 | (4.4 | ) | |||||||||||||
Income from continuing operations | 128.0 | 60.4 | 67.6 | 117.2 | 33.6 | 83.6 | |||||||||||||||||
Plus: | |||||||||||||||||||||||
Income tax expense | 63.1 | 57.5 | 5.6 | 73.0 | 67.7 | 5.3 | |||||||||||||||||
Income from continuing operations before income taxes | 191.0 | 117.8 | 73.2 | 190.2 | 101.3 | 88.9 | |||||||||||||||||
Plus: | |||||||||||||||||||||||
Loss (gain) on disposal of subsidiaries, net | — | — | — | 3.1 | (0.3 | ) | 3.4 | ||||||||||||||||
Foreign currency exchange (gain) loss, net | (27.5 | ) | 32.4 | (59.9 | ) | (21.8 | ) | 61.3 | (83.1 | ) | |||||||||||||
Other (income) expense, net | (0.1 | ) | 0.1 | (0.2 | ) | 0.4 | (0.1 | ) | 0.5 | ||||||||||||||
Interest expense | 5.1 | 6.1 | (1.0 | ) | 9.8 | 12.1 | (2.3 | ) | |||||||||||||||
Interest income | (2.0 | ) | (2.0 | ) | — | (3.9 | ) | (4.1 | ) | 0.2 | |||||||||||||
Operating income | 166.6 | 154.5 | 12.1 | 177.7 | 170.1 | 7.6 | |||||||||||||||||
Plus: | |||||||||||||||||||||||
Depreciation and amortization | 17.4 | 17.3 | 0.1 | 35.5 | 34.0 | 1.5 | |||||||||||||||||
EBITDA | 184.0 | 171.8 | 12.2 | 213.2 | 204.1 | 9.1 | |||||||||||||||||
Plus: | |||||||||||||||||||||||
Share-based compensation expense (2) | 2.9 | 2.0 | 0.9 | 4.3 | 3.1 | 1.2 | |||||||||||||||||
Loss on impairment of assets (3) | — | 1.6 | (1.6 | ) | — | 1.6 | (1.6 | ) | |||||||||||||||
Adjusted EBITDA | $ | 186.9 | $ | 175.4 | $ | 11.5 | $ | 217.5 | $ | 208.9 | $ | 8.6 |
(2) Represents non-cash, share-based compensation expense pursuant to the provisions of ASC Topic 718, "Stock Compensation."
(3) Represents non-cash charges related to impairments of long-lived assets.
Investor Relations Contact:
Media Contacts:
Laureate Education
Adam Smith
adam.smith@laureate.net
U.S.: +1 (443) 255 0724
Source: Laureate Education, Inc.
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