Exhibit 99.01
Laureate Education Reports Record Student Enrollment and Strong Third
Quarter 2004 Financial Results;
Company Reports 28% Increase in Campus-Based New Student Enrollment
BALTIMORE--(BUSINESS WIRE)--Oct. 20, 2004--Laureate Education,
Inc. (NASDAQ: LAUR), the world's leading international provider of
higher education, announced record total student enrollment and strong
financial performance for the quarter ended September 30, 2004.
Financial and Operational Highlights
-- Total student enrollment at Laureate's campus-based and online
universities reached 154,044 students, an increase of 39% over
last year.
-- For campus-based universities owned at least one year, new
student enrollment increased 28% year-over-year driving a 20%
increase in total enrollment to 114,367 students from 95,143
students in the same period last year.
-- Laureate Online reported a 20% year-over-year increase in
total student enrollment excluding the impact of acquisitions,
its highest level of growth since March 2003. The Company
reported a 20% increase in new online student enrollment.
-- As previously announced, Laureate Education entered the
rapidly growing post secondary market of Peru with the
acquisition of Universidad Peruana de Ciencias Aplicadas (UPC)
and extended its presence in France by acquiring the entity
that manages Ecole Centrale d'Electronique (ECE). Laureate
also acquired the remaining 49% interest in Walden University,
now the centerpiece of Laureate Online, giving the Company
100% ownership of its fastest growing subsidiary.
-- Third quarter 2004 revenues increased 37% to $146.1 million,
compared to $106.3 million in the third quarter of 2003.
-- Total operating income for the third quarter 2004 increased to
$17.7 million versus $11.3 million in the third quarter of
2003, an increase of 57%.
-- The Company reported third quarter 2004 EPS from continuing
operations of $0.19 per diluted share.
Douglas Becker, Chairman and Chief Executive Officer of Laureate
Education, stated, "The strength of this season's record enrollment
provides us with substantial momentum heading into 2005 and affords us
great visibility into next year and beyond due to our high student
retention and program length of up to six years."
"We are encouraged by the continued strong global demand and our
very successful enrollment intake in Mexico. In addition, the robust
total student enrollment reported by Laureate Online signifies the
completion of our transition away from certain third-party
partnerships to focus on expansion of Walden University, and positions
us for further acceleration in new student growth in the fourth
quarter," added Mr. Becker.
Total revenues for the third quarter of 2004 were $146.1 million,
an increase of 37% compared to total revenues of $106.3 million in the
third quarter of 2003. Total operating income for the third quarter
increased to $17.7 million, versus $11.3 million in the third quarter
of 2003. After-tax income from continuing operations for the third
quarter of 2004 was $9.3 million or $0.19 per share on diluted shares
outstanding of 49.1 million.
For the nine-month period ended September 30, 2004, total revenues
were $436.5 million, an increase of 37% compared to total revenues of
$317.9 million in the same period of 2003. Total operating income for
the nine-month period increased to $43.5 million, versus an operating
loss of $1.3 million in the same period of 2003. After-tax income from
continuing operations for the nine-month period ended September 30,
2004 was $35.6 million or $0.74 per share on diluted shares
outstanding of 48.2 million, including $0.10 per share year-to-date
net gain from the early repayment of the K-12 seller note received on
April 27, 2004.
Total cash and marketable securities at September 30, 2004 were
approximately $121.4 million, while total corporate debt was
approximately $115.1 million.
Tuition increases implemented at campus-based universities since
the third quarter of 2003 generated weighted average price improvement
of 5%.
Laureate Education now operates 17 institutions of higher
education in 11 countries, offering programs through 41 campus
locations and online to students from over 80 countries.
Enrollment
Laureate announces campus-based enrollment for its institutions
following each primary intake period. The Company's institutions in
Chile and Peru have primary intake periods in the first quarter. The
Company's universities in Ecuador, France, Mexico, Panama/Costa Rica,
Spain, and Switzerland have their primary intake periods in the third
quarter. Given the frequency of enrollment periods at Laureate Online,
the Company reports online enrollment as of the end of each quarter.
Total student enrollment at Laureate's campus-based and online
universities reached 154,044 students, an increase of 39% over last
year. (See attached table for additional detail.)
Revenue Growth Impact of FX (excluding acquisitions)
Three Months Ended Sept. 30, 2004
% Growth
Revenue Amount Constant
(In Thousands) 2004 2003 in USD Currency
-------- -------- -------- ----------
Chile Region $ 43,772 $ 31,679 38% 26%
Mexico Region 40,653 35,310 15% 22%
France 1,244 1,441 -14% -20%
Hospitality 13,135 12,180 8% -1%
Spain 2,318 1,546 50% 38%
Note: Excludes acquisitions made within the last twelve months.
Fourth Quarter 2004 and Full-Year 2005 Outlook
The following statements are based on current expectations. These
statements are forward-looking and actual results may differ
materially.
-- Company anticipates total revenue to be between $190 and $205
million for the fourth quarter 2004, an increase of 22% or
more over the prior year.
-- Company anticipates Campus-based revenue to be between $155
and $165 million for the fourth quarter 2004, with operating
margins of between 25% and 26%.
-- Company anticipates Laureate Online revenue to be between $35
and $40 million for the fourth quarter 2004, with operating
margins of between 23% and 24%.
-- General and administrative expenses are expected to be
approximately $5.5 million in the fourth quarter 2004.
-- Diluted earnings per share from continuing operations are
anticipated to be between $0.57 and $0.59 for the fourth
quarter 2004.
-- Company reiterates full-year 2005 earnings outlook of $1.60 to
$1.65 per diluted share, compared to 2004 guidance of $1.24 to
$1.26 in recurring EPS.
About Laureate Education, Inc.
Laureate Education Inc. (NASDAQ:LAUR) is focused exclusively on
providing a superior university experience to nearly 155,000 students
through the leading global network of accredited campus-based and
online universities. Addressing the rapidly growing global demand for
higher education, Laureate offers a broad range of career-oriented
undergraduate and graduate programs through campus-based universities
located in Latin America, Europe, and Asia. Through online
universities, Laureate offers the growing population of
non-traditional, working-adult students the convenience and
flexibility of distance learning to pursue undergraduate, master's and
doctorate degree programs in major career fields including
engineering, education, business, and healthcare.
Forward Looking Statements
This release 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 Company believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions, the
Company's actual results could differ materially from those described
in the forward-looking statements.
The following factors might cause such a difference:
-- The Company's operations can be materially affected by
competition in its target markets and by overall market
conditions, among other factors.
-- The Company's foreign operations, in particular, are subject
to political, economic, legal, regulatory and currency-related
risks.
Additional information regarding these risk factors and
uncertainties is detailed from time to time in the Company's filings
with the Securities and Exchange Commission, including, but not
limited to, our most recent Forms 10-K and 10-Q, available for viewing
on our website. (To access this information on our website, please
click on "Investor Relations," "SEC Filings")
Laureate Education, Inc.
Student Enrollment
(Campus-based enrollments as of primary enrollment cycle,
online enrollments as of 9/30/04)
Y/Y Growth
2004 2003 (2003-04)
-------- -------- -------------
New Student Enrollments (1)
Mexico 17,455 13,571 29%
Chilean Region 20,923 (E) 16,226 29%
Spain 2,990 (E) 2,518 19%
France 332 303 10%
Hospitality 638 513 24%
-------- --------
Campus-based New(1) 42,338 33,131 28%
New Enrollment at Acquired
Schools (2) 5,825 n/a
-------- --------
Campus-based New with
Acquisitions 48,163 33,131 45%
======== ========
Laureate Online 4,746 3,946 20%
New Enrollment at Acquired
School (3) 195 n/a
-------- --------
Laureate Online New with
Acquisitions 4,941 3,946 25%
======== ========
Campus-based and Online New
Enrollment 53,104 37,077 43%
Total Student Enrollments (1)(4)
Mexico 50,311 42,657 18%
Chilean Region 52,378 (E) 40,914 28%
Spain 7,627 (E) 7,540 1%
France 1,164 1,124 4%
Hospitality 2,887 2,908 -1%
-------- --------
Campus-based Total (1) 114,367 95,143 20%
Enrollment at Acquired
Schools (2) 19,498 n/a
-------- --------
Campus-based Total with
Acquisitions 133,865 95,143 41%
======== ========
Laureate Online 18,547 15,417 20%
Enrollment at Acquired School
(3) 1,632 n/a
-------- --------
Laureate Online Total with
Acquisitions 20,179 15,417 31%
======== ========
Total Campus-based and Online
Enrollment 154,044 110,560 39%
Notes:
(1) New and total students are as of most recent primary intake cycle
for each institution. For Chile, the primary intake cycle ends in
April 2004.
(2) Acquisitions since 9/30/03: IEDE (Spain), UPC (Peru),
Hispanoamericana (Mexico), and Interamericana (Costa Rica/Panama).
(3) Acquisition of Laureate Online International, formerly KIT
(Netherlands) in 4/2004.
(4) Total Student Enrollment includes enrollments from secondary
intake cycles of approximately 5,000 and 6,000 students for 2003
and 2004, respectively.
(E) Estimate
Laureate Education, Inc. & Subsidiaries
Consolidated Statements of Operations
(Amounts in thousands, except per share data)
Three Months Ended September 30,
-------------------------------------
$ %
2004 2003 Variance Variance
-------- --------- ------------------
(Restated)
(e)
Revenues
Spain $2,844 $1,546 $1,298 84%
Hospitality/Switzerland (a) 13,196 12,180 1,016 8%
Chile region (b) 47,473 31,679 15,794 50%
Mexico region (c) 46,195 35,310 10,885 31%
France 1,244 1,441 (197) -14%
-------- --------- -------- ---------
Campus Based total 110,952 82,156 28,796 35%
-------- --------- -------- ---------
Online Higher Education 35,158 24,171 10,987 45%
Ventures - - - N/A
-------- --------- -------- ---------
Total revenues 146,110 106,327 39,783 37%
-------- --------- -------- ---------
Core operating expenses 122,063 92,101 29,962 33%
Ventures operating expenses - - - N/A
Non-cash stock compensation
expense 891 355 536 151%
Core general and
administrative expenses 5,450 2,592 2,858 110%
Ventures general and
administrative expenses - - - N/A
-------- --------- -------- ---------
Total operating expenses 128,404 95,048 33,356 35%
-------- --------- -------- ---------
Operating income (loss) 17,706 11,279 6,427 57%
Non-operating items
Interest and other income (g) 1,160 3,143 (1,983) -63%
Interest expense (2,067) (1,858) (209) -11%
Exchange gain (loss) (509) (27) (482) LT-200%
Ventures non-operating expense - - - N/A
-------- --------- -------- ---------
Total non-operating items (1,416) 1,258 (2,674) N/A
-------- --------- -------- ---------
Income (loss) from continuing
operations before minority
interest, equity in net income
(loss) of affiliates, and
income taxes 16,290 12,537 3,753 30%
Minority interest in (income)
loss of consolidated
subsidiaries, net of income
tax
Ventures - - - N/A
Other (4,192) (2,753) (1,439) -52%
Equity in net income (loss) of
affiliates, net of income tax
Ventures - - - N/A
Other - 44 (44) N/A
Income tax (expense) benefit (2,795) (3,704) 909 25%
-------- --------- -------- ---------
Income (loss) from continuing
operations 9,303 6,124 3,179 52%
Income (loss) from discontinued
operations, net of income tax 31 (699) 730 N/A
Gain on disposal of discontinued
operations, net of income tax - - - N/A
-------- --------- -------- ---------
Net income $9,334 $5,425 $3,909 72%
======== ========= ======== =========
Weighted average shares -
basic 46,524 42,637
Weighted average shares -
diluted 49,124 46,635
EPS-Net income (basic) $0.20 $0.13
EPS-Net Income (diluted) $0.19 $0.12
EPS-Income (loss) from
continuing operations (basic) $0.20 $0.14
EPS-Income (loss) from
continuing operations
(diluted) $0.19 $0.13
Reconciliation - Pro Forma
Income from Continuing
Operations
--------------------------
Income (loss) from continuing
operations before income taxes $9,828
Income tax expense in equity in
net income (loss) of affiliates (6)
Non-strategic Ventures losses -
Non-cash stock compensation
G&A attributable to discontinued
operations
Core operations - non-operating
---------
Subtotal $9,822
Tax impact at 25% (2,456)
---------
Pro Forma income from continuing
operations (d) $7,366
Weighted average shares - Pro
Forma 46,635
EPS - As if transaction happened
January 1, 2003 (f) $0.16
Segment operating profit
(loss):
Campus Based $18,942 $10,085 $8,857 88%
Online Higher Education 5,105 4,141 964 23%
Ventures - - - N/A
a) Hospitality includes the operating results of Les Roches, Marbella
and Glion.
b) The Chile region includes UDLA, UNAB, AIEP, Ecuador and Peru.
c) The Mexico region includes UVM- Mexico and UI-Costa Rica/Panama.
d) Reconciling items represent adjustments as if the sale of the K-12
business units and decision to dispose of the non-strategic
Venture assets occurred January 1, 2003.
e) The 2004 operating results present (and the 2003 operating results
have been restated to present) the K-12, WSI and India business
units as discontinued operations.
f) In calculating 2003 EPS, interest related to the convertible
debentures must be added back to the numerator.
g) Includes acceleration of original issue discount triggered by the
early repayment of the K-12 seller note.
GT = Greater Than, LT = Less Than
Laureate Education, Inc. & Subsidiaries
Consolidated Statements of Operations
(Amounts in thousands, except per share data)
Nine Months Ended September 30,
-------------------------------------
$ %
2004 2003 Variance Variance
-------- --------- ------------------
(Restated)
(e)
Revenues
Spain $54,519 $46,829 $7,690 16%
Hospitality/Switzerland (a) 38,018 35,161 2,857 8%
Chile region (b) 111,782 56,583 55,199 98%
Mexico region (c) 131,300 103,608 27,692 27%
France 6,421 5,349 1,072 20%
-------- --------- -------- ---------
Campus Based total 342,040 247,530 94,510 38%
-------- --------- -------- ---------
Online Higher Education 94,477 69,460 25,017 36%
Ventures - 903 (903) N/A
-------- --------- -------- ---------
Total revenues 436,517 317,893 118,624 37%
-------- --------- -------- ---------
Core operating expenses 373,002 278,348 94,654 34%
Ventures operating expenses - 2,122 (2,122) N/A
Non-cash stock compensation
expense 3,886 22,688 (18,802) -83%
Core general and
administrative expenses 16,170 14,286 1,884 13%
Ventures general and
administrative expenses - 1,756 (1,756) N/A
-------- --------- -------- ---------
Total operating expenses 393,058 319,200 73,858 23%
-------- --------- -------- ---------
Operating income (loss) 43,459 (1,307) 44,766 N/A
Non-operating items
Interest and other income (g) 20,505 3,770 16,735 GT200%
Interest expense (5,220) (7,387) 2,167 29%
Exchange gain (loss) (446) 209 (655) N/A
Ventures non-operating expense - (8,437) 8,437 N/A
-------- --------- -------- ---------
Total non-operating items 14,839 (11,845) 26,684 N/A
-------- --------- -------- ---------
Income (loss) from continuing
operations before minority
interest, equity in net
income (loss) of affiliates,
and income taxes 58,298 (13,152) 71,450 N/A
Minority interest in (income)
loss of consolidated
subsidiaries, net of income
tax
Ventures - 487 (487) N/A
Other (12,732) (7,009) (5,723) -82%
Equity in net income (loss) of
affiliates, net of income tax
Ventures - (3,991) 3,991 N/A
Other (8) 155 (163) N/A
Income tax (expense) benefit (9,911) 3,790 (13,701) N/A
-------- --------- -------- ---------
Income (loss) from continuing
operations 35,647 (19,720) 55,367 N/A
Income (loss) from discontinued
operations, net of income tax (5,887) 607 (6,494) N/A
Gain on disposal of discontinued
operations, net of income tax - 39,423 (39,423) N/A
-------- --------- -------- ---------
Net income $29,760 $20,310 $9,450 47%
======== ========= ======== =========
Weighted average shares -
basic 45,598 41,386
Weighted average shares -
diluted 48,247 41,386
EPS-Net income (basic) $0.65 $0.49
EPS-Net Income (diluted) $0.62 $0.49
EPS-Income (loss) from
continuing operations (basic) $0.78 $(0.48)
EPS-Income (loss) from
continuing operations
(diluted) $0.74 $(0.48)
Reconciliation - Pro Forma
Income from Continuing
Operations
- ----------------------------
Income (loss) from continuing operations
before income taxes $(23,510)
Income tax expense in
equity in net income
(loss) of affiliates (3,747)
Non-strategic Ventures
losses 18,677
Non-cash stock
compensation 22,158
G&A attributable to
discontinued operations 6,855
Core operations -
non-operating 4,564
---------
Subtotal $24,997
Tax impact at 25% (6,249)
---------
Pro Forma income from continuing
operations (d) $18,748
Weighted average shares - Pro
Forma 45,935
EPS - As if transaction happened
January 1, 2003 (f) $0.43
Segment operating profit
(loss):
Campus Based $53,202 $31,742 $21,460 68%
Online Higher Education 10,313 6,900 3,413 49%
Ventures - (2,975) 2,975 N/A
a) Hospitality includes the operating results of Les
Roches, Marbella and Glion.
b) The Chile region includes UDLA, UNAB, AIEP, Ecuador and Peru.
c) The Mexico region includes UVM- Mexico and UI-Costa Rica/Panama.
d) Reconciling items represent adjustments as if the sale of the K-12
business units and decision to dispose of the non-strategic
Venture assets occurred January 1, 2003.
e) The 2004 operating results present (and the 2003 operating results
have been restated to present) the K-12, WSI and India business
units as discontinued operations.
f) In calculating 2003 EPS, interest related to the convertible
debentures must be added back to the numerator.
g) Includes acceleration of original issue discount triggered by the
early repayment of the K-12 seller note.
GT = Greater Than, LT = Less
Than
CONTACT: Laureate Education Inc.
Sean Creamer, 410-843-8991
or
Investor Relations:
Chris Symanoskie, 410-843-6394