Exhibit 99.01
Laureate Education, Inc. Reports Record Student Enrollment and
Strong Third Quarter 2005 Results; Total Student Enrollment
Increases 27% Over Prior Year to 193,057 Students
BALTIMORE--(BUSINESS WIRE)--Oct. 20, 2005--Laureate Education,
Inc. (NASDAQ: LAUR), the world's leading international provider of
higher education, announced robust student enrollment and strong
financial results for the quarter ended September 30, 2005.
-- Third quarter 2005 revenues increased 36% to $199.2 million,
compared to $146.1 million in the third quarter of 2004.
-- Total operating income for the third quarter 2005 increased
18% to $20.8 million compared to $17.7 million in the third
quarter of 2004.
-- The Company reported earnings from continuing operations of
$0.23 per diluted share for the quarter ending September 30,
2005, a seasonally weak quarter as many northern hemisphere
institutions are out of session. This compares to $0.19 per
diluted share for the same period of 2004.
-- The Company's campus-based institutions reported third quarter
total student enrollment increased 26% to 167,034 students.
-- Laureate Online Education reported third quarter total student
enrollment increased 28% to 26,023 students.
-- The Company currently believes that it will achieve earnings
of $0.89 to $0.94 per diluted share for the quarter ending
December 31, 2005, bringing full year earnings of $1.62 to
$1.67 per diluted share.
-- Laureate Education extended its presence in Central America by
acquiring a 100% interest in the third largest private
university in Honduras, Universidad Tecnologica
Centroamericana (UNITEC).
-- Universidad del Valle de Mexico (UVM) announced the opening of
its 21st campus, located in Torreon, Mexico.
Douglas Becker, Chairman and Chief Executive Officer of Laureate
Education stated, "We are very pleased with the strength of our new
student enrollment across all business units. This continued momentum
in new enrollment supports growth in total enrollments and revenues in
2006 and beyond due to an average length of stay of nearly three
years. We are finding that Laureate network programs such as working
adult, study abroad and dual degrees are providing our universities
with an important competitive advantage at the local level, adding to
the value of the Laureate brand."
Financial Results
Total revenues for the third quarter of 2005 were $199.2 million,
an increase of 36% compared to total revenues of $146.1 million in the
third quarter of 2004. Total operating income for the third quarter
increased 18% to $20.8 million, versus operating income of $17.7
million in the third quarter of 2004. After-tax income from continuing
operations for the third quarter of 2005 was $12.0 million or $0.23
per diluted share, compared to $9.3 million or $0.19 per diluted share
for the same period of 2004.
For the nine-month period ended September 30, 2005, total revenues
were $597.6 million, an increase of 37% compared to total revenues of
$436.5 million in the same period of 2004. Total operating income for
the nine-month period increased 38% to $59.9 million, versus operating
income of $43.5 million in the same period of 2004. After-tax income
from continuing operations for the nine-month period ended September
30, 2005 was $38.2 million or $0.74 per diluted share.
Total cash and marketable securities at September 30, 2005 were
approximately $104 million, while total corporate debt was
approximately $120 million.
Laureate extended its presence in Central America by acquiring a
100% interest in the third largest private university in Honduras,
Universidad Tecnologica Centroamericana (UNITEC). Founded in 1987,
UNITEC (www.unitec.edu) offers Undergraduate and Graduate programs in
Business, Engineering, Information Technology, and Communications to
nearly 4,500 students. As an accredited university, UNITEC offers
programs at two campus locations in Tegucigalpa and San Pedro Sula -
the two largest cities in Honduras.
Universidad del Valle de Mexico (UVM) opened a new campus in
Torreon, a city in the northeast region of Mexico. UVM now operates a
total of 21 campuses throughout Mexico.
Today, Laureate Education operates 18 institutions of higher
education in 13 countries, offering programs through 46 campus
locations and online to 193,057 students in over 80 countries.
Revenue Growth - Organic and Acquisition
- ----------------------------------------
Three months ended September 30th
% Growth
Revenue Amount Constant
(In Thousands) 2005 2004 in USD Currency
---- ---- ------ --------
Mexico/Central
America(1) $ 58,123 $ 46,195 26% 19%
Andean Region(2) 62,045(4) 47,473(4) 31% 16%
Europe Region 17,639 17,284 2% 2%
Online 45,809 35,158 30% 30%
--------- ---------
Subtotal 183,616 146,110 26%
Acquisitions(3) 15,588(5) NA
--------- ---------
Total $ 199,204 $ 146,110 36%
(1) Mexico/Central America includes Mexico, Costa Rica, Panama, and
Honduras.
(2) Andean Region includes Chile, Ecuador and Peru.
(3) Acquisitions (less than 1 year) include: UNO, ULACIT, UNITEC, ECE
and IFG.
(4) Includes September UPC revenues (acquired September 2004).
(5) Includes July and August UPC revenues.
Student Enrollment
- ------------------
As of October 19th
New Student Enrollment(1) 2005 2004 % Change
---- ----
Mexico/Central America 32,085 27,127 18%
Andean Region(2) 29,141 22,849 28%
Europe Region 4,860 4,278 14%
-------- --------
New Campus Based 66,086 54,254 22%
New Student Enrollment
at Acquired Schools(4) 4,547 463
-------- --------
Subtotal 70,633 54,717 29%
Online 16,994 12,618 35%
New Student Enrollment
with Acquisitions 87,627 67,335 30%
======== ========
Total Student Enrollment(3) 2005 2004
---- ----
Mexico/Central America 72,012 61,822 16%
Andean Region 69,997 57,961 21%
Europe Region 11,681 11,125 5%
-------- --------
Total Campus Based 153,690 130,908 17%
Total Student Enrollment
at Acquired Schools(4) 13,344 1,349
-------- --------
Subtotal 167,034 132,257 26%
Online 26,023 20,333 28%
Total Student Enrollment
with Acquisitions 193,057 152,590 27%
======== ========
(1) New student enrollment represents enrollment activity from January
1 through October 19.
(2) Includes UPC new enrollment YTD for 2005; 2004 includes UPC new
enrollment in third quarter only.
(3) Total student enrollments are census as of October 19th. Laureate
Education reports second and fourth quarter enrollment as of the
last day of the respective fiscal quarters. Due to ongoing
enrollment activity following the end of the first quarter and
third quarter, the company reports enrollment for these periods as
of the earnings report date.
(4) Acquisitions (less than one year) include the following: UNO,
ULACIT, UNITEC, ECE and IFG; 2004 includes ECE only.
Financial Outlook
The following statements are based on current expectations. These
statements are forward-looking and actual results may differ
materially.
-- For its campus-based and online businesses, Laureate Education
anticipates total revenue of $250 to $275 million for the
fourth quarter 2005.
-- The Company anticipates Campus-Based revenue of $200 to $220
million for the fourth quarter 2005, with operating margins
between 29% and 30%. Latin America expects revenue of $145 to
$160 million with operating margins of 33% to 34%. Europe
expects revenue of $55 to $60 million with operating margins
of 25% to 26%. Campus-based general and administrative
expenses are expected to be approximately $4.0 million.
-- The Company anticipates Online revenue of $50 to $55 million
for the fourth quarter 2005, with operating margins between
27% and 28%.
-- General and administrative expenses are expected to be
approximately $6.5 million in the fourth quarter 2005.
-- Non-cash stock compensation expense is expected to be
approximately $1.5 million in the fourth quarter 2005.
-- The Company currently believes that it will achieve earnings
of $0.89 to $0.94 per diluted share for the quarter ending
December 31, 2005, the Company's seasonally strongest quarter.
Fully diluted shares outstanding for the fourth quarter 2005
are projected to be approximately 52.3 million.
-- Laureate Education reiterates its full-year 2006 earnings
outlook of between $2.00 to $2.10 per diluted share, excluding
the impact of SFAS123(R).
About Laureate Education, Inc.
Laureate Education Inc. (NASDAQ: LAUR) is focused exclusively on
providing a superior university experience to nearly 200,000 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 September 30,
-----------------------------------------
2005 2004 $ Variance % Variance
--------- --------- ---------- ----------
Revenues
Mexico/Central America
region(a) $64,280 $46,195 $18,085 39%
Andean region(b) 67,294 47,473 19,821 42%
--------- --------- ---------- ----------
Campus Based - Latin America 131,574 93,668 37,906 40%
Spain 1,574 2,844 (1,270) -45%
Hospitality/
Switzerland(c) 14,648 13,196 1,452 11%
France 5,599 1,244 4,355 GT200%
--------- --------- ---------- ----------
Campus Based - Europe 21,821 17,284 4,537 26%
--------- --------- ---------- ----------
Campus Based Total 153,395 110,952 42,443 38%
--------- --------- ---------- ----------
Laureate Online Education 45,809 35,158 10,651 30%
--------- --------- ---------- ----------
Total revenues 199,204 146,110 53,094 36%
--------- --------- ---------- ----------
Core operating expenses 169,852 122,063 47,789 39%
Non-cash stock compensation
expense 1,335 891 444 50%
General and administrative
expenses 7,173 5,450 1,723 32%
--------- --------- ---------- ----------
Total operating expenses 178,360 128,404 49,956 39%
--------- --------- ---------- ----------
Operating income 20,844 17,706 3,138 18%
Non-operating items
Interest and other income 2,876 1,160 1,716 148%
Interest expense (2,611) (2,067) (544) -26%
Foreign exchange loss (90) (509) 419 82%
--------- --------- ---------- ----------
Total non-operating items 175 (1,416) 1,591 N/A
--------- --------- ---------- ----------
Income from continuing
operations before minority
interest, equity in net
income (loss) of
affiliates, and income
taxes 21,019 16,290 4,729 29%
Minority interest in income
of consolidated
subsidiaries, net of income
tax (5,829) (4,192) (1,637) -39%
Equity in net loss of
affiliates, net of income
tax (166) - (166) N/A
Income tax expense (2,977) (2,795) (182) -7%
--------- --------- ---------- ----------
Income from continuing
operations 12,047 9,303 2,744 29%
(Loss) income from
discontinued operations,
net of income tax(d) (229) 31 (260) N/A
Loss on disposal of
discontinued operations,
net of income tax - - - N/A
--------- --------- ---------- ----------
Net Income $11,818 $9,334 $2,484 27%
========= ========= ========== ==========
Weighted average shares
(basic) 49,801 46,524
Weighted average shares
(diluted) 52,073 49,124
EPS-Net Income (basic) $0.24 $0.20
EPS-Net Income (diluted) $0.23 $0.19
EPS-Income from continuing
operations (basic) $0.24 $0.20
EPS-Income from continuing
operations (diluted) $0.23 $0.19
Segment operating profit
(loss):
Campus Based - Latin
America $35,586 $26,053 $9,533 37%
Campus Based - Europe (7,653) (4,465) (3,188) -71%
Campus Based - Overhead (5,635) (2,646) (2,989) -113%
--------- --------- ---------- ----------
Campus Based - Total $22,298 $18,942 $3,356 18%
--------- --------- ---------- ----------
Laureate Online Education $7,054 $5,105 $1,949 38%
--------- --------- ---------- ----------
a) The Mexico/Central American region includes Mexico, Costa Rica,
Panama and Honduras.
b) The Andean region includes Chile, Ecuador and Peru.
c) Hospitality includes the operating results of Les Roches 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, LT = Less Than
Nine Months Ended September 30,
-----------------------------------------
2005 2004 $ Variance % Variance
--------- --------- ---------- ----------
Revenues
Mexico/Central America
region(a) $178,370 $131,300 $47,070 36%
Andean region(b) 160,442 111,782 48,660 44%
--------- --------- ---------- ----------
Campus Based - Latin America 338,812 243,082 95,730 39%
Spain 58,420 54,519 3,901 7%
Hospitality/
Switzerland(c) 40,003 38,018 1,985 5%
France 29,521 6,421 23,100 GT200%
--------- --------- ---------- ----------
Campus Based - Europe 127,944 98,958 28,986 29%
--------- --------- ---------- ----------
Campus Based Total 466,756 342,040 124,716 36%
--------- --------- ---------- ----------
Laureate Online Education 130,850 94,477 36,373 38%
--------- --------- ---------- ----------
Total revenues 597,606 436,517 161,089 37%
--------- --------- ---------- ----------
Core operating expenses 516,062 373,002 143,060 38%
Non-cash stock compensation
expense 2,529 3,886 (1,357) -35%
General and administrative
expenses 19,074 16,170 2,904 18%
--------- --------- ---------- ----------
Total operating expenses 537,665 393,058 144,607 37%
--------- --------- ---------- ----------
Operating income 59,941 43,459 16,482 38%
Non-operating items
Interest and other income(e) 8,565 20,505 (11,940) -58%
Interest expense (7,687) (5,220) (2,467) -47%
Foreign exchange loss (777) (446) (331) -74%
--------- --------- ---------- ----------
Total non-operating items 101 14,839 (14,738) -99%
--------- --------- ---------- ----------
Income from continuing
operations before minority
interest, equity in net
income (loss) of
affiliates, and income
taxes 60,042 58,298 1,744 3%
Minority interest in income
of consolidated
subsidiaries, net of income
tax (13,081) (12,732) (349) -3%
Equity in net loss of LT-200%
affiliates, net of income
tax (370) (8) (362)
Income tax expense (8,406) (9,911) 1,505 15%
--------- --------- ---------- ----------
Income from continuing
operations 38,185 35,647 2,538 7%
(Loss) income from
discontinued operations,
net of income tax(d) 386 (5,887) 6,273 N/A
Loss on disposal of
discontinued operations,
net of income tax (2,351) - (2,351) N/A
--------- --------- ---------- ----------
Net Income $36,220 $29,760 $6,460 22%
========= ========= ========== ==========
Weighted average shares
(basic) 49,539 45,598
Weighted average shares
(diluted) 51,948 48,247
EPS-Net Income (basic) $0.73 $0.65
EPS-Net Income (diluted) $0.70 $0.62
EPS-Income from continuing
operations (basic) $0.77 $0.78
EPS-Income from continuing
operations (diluted) $0.74 $0.74
Reconciliation - Pro Forma Income from Continuing Operations
- -------------------------------------------------------------
Income from continuing
operations before income
taxes $45,558
Impact from early
repayment of Educate Inc.
note receivable (8,197)
---------
Subtotal $37,361
Pro Forma tax expense (6,632)
---------
Pro Forma income from
continuing operations $30,729
---------
Pro Forma weighted average
shares (diluted) 48,247
EPS - Pro Forma income from
continuing operations
(diluted) $0.64
Segment operating profit
(loss):
Campus Based - Latin
America $69,975 $50,412 $19,563 39%
Campus Based - Europe 9,039 10,736 (1,697) -16%
Campus Based - Overhead (11,123) (7,946) (3,177) -40%
--------- --------- ---------- ----------
Campus Based - Total $67,891 $53,202 $14,689 28%
--------- --------- ---------- ----------
Laureate Online Education $13,653 $10,313 $3,340 32%
--------- --------- ---------- ----------
a) The Mexico/Central American region includes Mexico, Costa Rica,
Panama and Honduras.
b) The Andean region includes Chile, Ecuador and Peru.
c) Hospitality includes the operating results of Les Roches and Glion.
d) The 2005 and 2004 operating results present the K-12 (including
UK/France), WSI and India business units as discontinued
operations.
e) The nine-months ended September 30, 2004 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
Rosemarie Mecca, 410-843-8070
or
Investor Relations:
Chris Symanoskie, 410-843-6394