Exhibit 99.01
Laureate Education, Inc. Reports 32% Increase in Total Student Enrollment and
Strong First Quarter 2005 Results; Company Introduces 2006 Earnings Outlook of
$2.00 to $2.10 Per Diluted Share
BALTIMORE--(BUSINESS WIRE)--April 21, 2005--Laureate Education,
Inc. (NASDAQ: LAUR), the world's leading international provider of
higher education, announced strong enrollment and financial results
for the quarter ended March 31, 2005.
-- First quarter 2005 revenues increased 39% to $184.1 million,
compared to $132.2 million in the first quarter of 2004.
-- Total operating income for the first quarter 2005 increased
46% to $5.2 million compared to $3.6 million in the first
quarter of 2004.
-- The Company reported earnings from continuing operations of
$0.07 per diluted share for the quarter ending March 31, 2005,
the Company's seasonally weakest quarter.
-- The Company introduced 2006 earnings outlook of $2.00 to $2.10
per diluted share and increased its 2005 earnings outlook by
$0.02 per share to $1.62 to $1.67 per diluted share.
-- The Company reported first quarter increases of 28% and 32% in
new and total student enrollment, respectively, at its network
of campus-based and online institutions.
-- The Company's campus-based institutions reported a 28%
increase in new student enrollment and a 33% increase in
total student enrollment.
-- Laureate Online Education reported total degree enrollment
increased 26% to 22,918 students, driven by a 27% increase
in new student enrollment.
-- The Company also announced the appointment of Isabel Aguilera
to serve on the Company's Board of Directors. As the Chief
Operating Officer for NH Hoteles, a global hospitality company
operating over 240 luxury hotels in 18 countries throughout
Europe and Latin America, Ms. Aguilera is responsible for the
daily operations and financial performance of NH Hoteles
worldwide. Ms. Aguilera previously held positions with Dell
Computer Corporation, Olivetti PC, Vodafone and
Hewlett-Packard and brings to the Laureate Board of Directors
over 20 years of experience in operations and marketing on an
international scale.
Douglas Becker, Chairman and Chief Executive Officer of Laureate
Education, stated, "We are very pleased with the strong growth of our
secondary intake in our Mexico/Central America region which bodes well
for the upcoming, larger primary intake in that region in our third
quarter. We are also delighted with the powerful enrollment momentum
in our Online division. The performance of these two growth leaders
should position us to meet our plan for an 18-20% increase in
Campus-based total enrollment and a 30-40% increase in Online total
enrollment this year."
"This growth, coupled with the visibility afforded by an average
student stay of more than three years, allows us to confidently
introduce guidance for earnings growth in 2006 of approximately 25%
over an expected record year in 2005. More importantly, we are
continuing to lay the groundwork for new campuses, new programs and
new countries to allow us to sustain that rate of earnings
growth through 2010."
Other Financial Information
After-tax income from continuing operations for the first quarter
of 2005 was $3.9 million or $0.07 per share on diluted shares
outstanding of 51.8 million.
Total cash and marketable securities at March 31, 2005 were
approximately $117 million, while total corporate debt was
approximately $107 million.
Laureate Education now operates institutions of higher education
in 12 countries, offering programs through 43 campus locations, and
online to students in over 80 countries.
Revenue Growth - Constant Currency
Three months ended March 31, 2005
% Growth
Revenue Amount Constant
(In Thousands) 2005 2004 in USD Currency
---- ---- ------ --------
Mexico Region(1) $ 56,865 $ 47,938 19% 20%
Andean Region(2) 20,003 18,335 9% 6%(5)
Europe Region 45,356 41,199 10% 5%
Online 36,582 24,684 48% 48%
------ -------
Subtotal 158,806 132,156 20% NA
Acquisitions 25,308 NA
------ --
Total $ 184,114 $ 132,156 39% NA
======= =======
Enrollment
- ----------
As of April 20, 2005
New Student Enrollment 2005 2004 % Change
---- ---- --------
Mexico Region(1)(3) 8,035 6,330 27%
Andean Region(2) 20,497 18,528 11%
Europe Region(3) 514 460 12%
Online 4,828 3,815 27%
------- -------
Subtotal: 33,874 29,133 16%
New Student Enrollment
at Acquired Schools(4): 3,367 NA NA
------- -------
New Student Enrollment
with Acquisitions: 37,241 29,133 28%
======= =======
Total Student Enrollment 2005 2004
---- ----
Mexico Region(1) 57,633 48,490 19%
Andean Region(2) 57,211 49,223 16%
Europe Region 11,922 11,816 1%
Online 22,918 18,144 26%
------- -------
Subtotal: 149,684 127,673 17%
Total Student Enrollment
at Acquired Schools(4): 18,556 NA NA
------- -------
Total Student Enrollment
with Acquisitions: 168,240 127,673 32%
======= =======
(1) Mexico Region includes campus-based universities located in
Mexico, Panama and Costa Rica.
(2) Andean Region includes Laureate's campus-based universities
located in Chile and Ecuador.
(3) Represents results of secondary intake. Primary intake is in
the third quarter.
(4) Acquired schools include acquisitions not owned during the
full periods presented.
(5) Student registration cut-off date not comparable to the prior
year.
Financial Outlook
The following statements are based on current expectations. These
statements are forward-looking and actual results may differ
materially.
-- Laureate Education anticipates total revenue of $210 to $230
million for the second quarter 2005.
-- The Company anticipates Campus-Based revenue of $170 to $185
million for the second quarter 2005, with operating margins
between 20% and 21%. Latin America expects revenue of $118 to
$130 million with margins of 26% to 27%. Europe expects
revenue of $52 to $55 million with margins of 14% to 15%.
Campus-based general and administrative expenses are expected
to be approximately $3.5 million.
-- The Company anticipates Online revenue of $40 to $45 million
for the second quarter 2005, with operating margins between
11% and 12%.
-- General and administrative expenses are expected to be
approximately $7 million in the second quarter 2005.
-- Non-cash stock compensation expense is expected to be
approximately $1 million in the second quarter 2005.
-- The Company currently believes that it will achieve earnings
of $0.42 to $0.44 per diluted share for the quarter ending
June 30, 2005.
-- Fully diluted shares outstanding for the second quarter 2005
are projected to be approximately 52.0 million.
-- The Company increased its full year 2005 Earnings Outlook by
$0.02 per share to $1.62 to $1.67 per diluted share.
-- The Company introduces full year 2006 Earnings Outlook of
$2.00 to $2.10 per diluted share. This earnings outlook is
prior to the adoption of SFAS123R.
About Laureate Education, Inc.
Laureate Education Inc. (NASDAQ: LAUR) is focused exclusively on
providing a superior university experience to nearly 170,000 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. For more
information, please visit our website, www.laureate-inc.com.
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,
www.laureate-inc.com, please click on "Investor Relations", "SEC
Filings")
Laureate Education, Inc. & Subsidiaries
Consolidated Statements of Operations
(Amounts in thousands, except per share data)
Three Months Ended March 31,
----------------------------------------
2005 2004 $Variance %Variance
----------------------------------------
Revenues
Mexico region (a) $ 63,725 $ 47,938 $ 15,787 33%
Andean region (b) 24,290 18,335 5,955 32%
-------- -------- --------- ----------
Campus Based-Latin America 88,015 66,273 21,742 33%
Spain 29,115 25,911 3,204 12%
Hospitality/Switzerland(c) 13,795 12,653 1,142 9%
France 13,726 2,635 11,091 GT200%
-------- -------- --------- ----------
Campus Based-Europe 56,636 41,199 15,437 37%
-------- -------- --------- ----------
Campus Based total 144,651 107,472 37,179 35%
-------- -------- --------- ----------
Laureate Online Education 39,463 24,684 14,779 60%
-------- -------- --------- ----------
Total revenues 184,114 132,156 51,958 39%
-------- -------- ---------- ----------
Core operating expenses 171,884 122,563 49,321 40%
Non-cash stock
compensation expense 780 712 68 10%
General and administrative
expenses 6,214 5,289 925 17%
-------- -------- --------- ----------
Total operating expenses 178,878 128,564 50,314 39%
-------- -------- --------- ----------
Operating income 5,236 3,592 1,644 46%
Non-operating items
Interest and other income 2,416 3,302 (886) -27%
Interest expense (2,374) (1,558) (816) -52%
Foreign exchange gain (loss)
249 360 (111) -31%
-------- -------- --------- ----------
Total non-operating items 291 2,104 (1,813) -86%
-------- -------- --------- ----------
Income from continuing
operations before minority
interest, equity in net
income (loss) of affiliates,
and income taxes 5,527 5,696 (169) -3%
Minority interest in income
of consolidated subsidiaries,
net of income tax (892) (2,474) 1,582 64%
Equity in net loss of GT-200%
affiliates, net of income tax (90) (8) (82)
Income tax expense (691) (707) 16 2%
-------- -------- --------- ----------
Income from continuing
operations 3,854 2,507 1,347 54%
Income (loss) from
discontinued operations,
net of income tax (d) 742 (2,891) 3,633 N/A
-------- -------- --------- ----------
Net income (loss) $ 4,596 $ (384) $ 4,980 N/A
======== ======== ========= ==========
Weighted average shares
- basic 49,237 44,925
Weighted average shares
- diluted 51,819 47,484
EPS-Net income (loss)
(basic) $ 0.09 $ (0.01)
EPS-Net Income (loss)
(diluted) $ 0.09 $ (0.01)
EPS-Income from continuing
operations (basic) $ 0.08 $ 0.06
EPS-Income from continuing
operations (diluted) $ 0.07 $ 0.05
Segment operating profit
(loss):
Campus Based-
Latin America $ 4,744 $ 3,563 $ 1,181 33%
Campus Based-Europe 8,863 8,775 88 1%
Campus Based-Overhead (2,590) (2,909) 319 11%
-------- -------- --------- ----------
Campus Based - Total 11,017 9,429 1,588 17%
Laureate Online 1,213 164 1,049 GT200%
a) The Mexico region includes Mexico, Costa Rica and Panama.
b) The Andean region includes Chile, Ecuador and Peru.
c) Hospitality includes the operating results of Les Roches, Marbella
and Glion.
d) The 2005 and 2004 operating results present the K-12 (including
UK/France), WSI and India business units as discontinued
operations.
GT = Greater Than
CONTACT: Laureate Education
Sean Creamer, 410-843-8991
or
Chris Symanoskie, 410-843-6394