Exhibit 99.01
Laureate Education, Inc. Reports Increases in Student Enrollment
and First Quarter 2007 Revenues
Total Student Enrollment Increases 16% to 262,900 Students
Worldwide
BALTIMORE--(BUSINESS WIRE)--April 26, 2007--Laureate Education,
Inc. (NASDAQ:LAUR), the world's leading international provider of
higher education, announced increases in student enrollment and
financial results for the quarter ended March 31, 2007.
-- First quarter 2007 revenues increased 21% to $283.5 million,
compared to $235.1 million in the first quarter of 2006.
-- Loss from continuing operations available to common
shareholders in the first quarter of 2007 was $26.4 million or
($0.51) per basic share, compared to a loss of $3.3 million or
($0.06) per basic share in the same period of 2006. Excluding
the impact of the accounting for minority share ownership
purchase agreements ("minority put agreements") of ($0.29) per
share and the additional expense of ($0.18) per share related
to the transaction contemplated by the merger agreement, EPS
would have been a loss of ($0.04) per share in the first
quarter of 2007. (For details see Reg G Reconciliation in the
financial tables that follow).
-- The Company's campus-based institutions reported total
enrollment increased 15% to 227,900 students, driven by a 20%
increase in new student enrollment.
-- Laureate Online Education reported total enrollment increased
24% to 35,000 students, driven by a 25% increase in new
student enrollment.
-- On January 28, 2007, Laureate Education entered into a
definitive merger agreement to be acquired by an investor
consortium for $60.50 per share in cash. During 2007, the
Company continues to anticipate that it will incur expenses
associated with the transaction contemplated by the merger
agreement.
-- The Company reiterates its full-year 2007 financial outlook -
on a full-year basis, the Company believes its 2007 income
from continuing operations available to common shareholders
will range from $1.63 to $1.73 per diluted share. The
Company's earnings guidance includes an EPS impact for the
minority share ownership purchase agreements ("minority put
agreements") of approximately ($0.51) per share and
transaction related expenses of approximately ($0.31) per
share, excluding compensation-related expenses payable upon
the closing of the transaction.
-- Laureate Education also announced that on March 8, 2007,
Universidad del Valle de Mexico ("UVM") acquired Universidad
Valle del Bravo ("UVB"), an accredited university with five
campuses and several locations in the state of Tamaulipas,
Mexico.
-- Laureate International Universities and the University of
Liverpool today announced the expansion of their unique
partnership. This expansion includes the development and
launch of new University of Liverpool online programs to
address the needs of students worldwide.
Financial and Other Results
Total revenues for the first quarter of 2007 were $283.5 million,
an increase of 21% compared to total revenues of $235.1 million in the
first quarter of 2006. The first quarter is the Company's seasonally
weakest quarter as many of our Southern Hemisphere schools are out of
session for the majority of the quarter. Total operating loss for the
first quarter of 2007 was $9.7 million, versus an operating loss of
$0.1 million in the first quarter of 2006. Loss from continuing
operations available to common shareholders in the first quarter of
2007 was $26.4 million or ($0.51) per basic share. This includes an
EPS impact from minority share ownership purchase agreements
("minority put agreements") of ($0.29) per share and additional
expense of ($0.18) per share related to the transaction contemplated
by the merger agreement.
Excluding the impact of the minority share ownership purchase
agreements ("minority put agreements") and transaction costs, EPS from
continuing operations in the first quarter of 2007 would have been a
loss of ($0.04) per basic share. (For details see Reg G Reconciliation
in the financial tables that follow).
Total cash and marketable securities at March 31, 2007 was $114.6
million, while total company debt was $468.7 million.
Acquisition in Mexico
Laureate Education also announced that on March 8, 2007,
Universidad del Valle de Mexico acquired Universidad Valle del Bravo,
an accredited university with five campuses and several locations in
the state of Tamaulipas, Mexico.
Founded in 1976 as a school of business and psychology,
Universidad Valle del Bravo has expanded to offer undergraduate and
graduate degree programs in Communications, Engineering, Dentistry,
Graphic Design, Law, Medicine, and Nursing. The University serves
approximately 4,500 students and is accredited by the Federation of
Private Mexican Institutions of High Education (FIMPES), Asociacion
Nacional de Universidades e Instituciones de Educacion Superior
(ANUIES) and authorized by the Mexican Secretary of Education (SEP).
Universidad del Valle de Mexico acquired Universidad Valle del
Bravo in exchange for approximately $32.5 million in cash and $3.3
million in seller financing. This acquisition is not expected to
materially impact the Company's earnings per share outlook.
Expanding Online International Partnership
Laureate International Universities and the University of
Liverpool today announced the expansion of their unique partnership.
This expansion includes the development and launch of new University
of Liverpool online programs to address the needs of students
worldwide.
Laureate Online Education, which includes Walden University and
The University of Liverpool partnership, is Laureate's renowned
distance education group. Laureate Online Education's Dutch subsidiary
has served as the exclusive e-Learning partner of the University of
Liverpool since 2000. Through this partnership
(www.uol.ohecampus.com), the University of Liverpool and Laureate have
developed several successful international online Masters programs in
Computer Science, Business and Public Health. Over 1,500 students from
more than 140 countries have graduated from these fully online
programs.
Revenue Growth - Organic and Acquisition
- ----------------------------------------------------------------------
For three months ended March 31st
% Growth
Revenue Amount Constant
(In Thousands) 2007 2006 in USD Currency
-------- -------- --------------------
Mexico/Central
America(1) $ 91,239 $ 79,243 15% 19%
South America(2) 48,995 43,258 13% 14%
Europe(3) 71,802 59,903 20% 13%
Online 69,593 52,706 32% 32%
-------- --------
Subtotal 281,629 235,110 20%
Acquisitions(4) 1,895 -
-------- --------
Total $283,524 $235,110 21%
======== ========
(1) Mexico/Central America includes Mexico, Costa Rica, Honduras and
Panama.
(2) South America includes Chile, Ecuador, Peru and Brazil.
(3) Europe includes Cyprus, France, Hospitality, and Spain.
(4) Acquisitions include: CH Holdings Netherlands B.V. (4Q 2006), and
Universidad Valle del Bravo Mexico (1Q 2007).
Student Enrollment
- ----------------------------------------------------------------------
As of April 25, 2007
New Student Enrollment (1) 2007 2006 % Change
-------- -------- ---------
Mexico/Central America 14,300 11,800 21%
South America* 35,900 30,000 20%
Europe 1,100 900 22%
-------- --------
Total Campus Based 51,300 42,700 20%
Online 7,600 6,100 25%
-------- --------
Total New Student Enrollment 58,900 48,800 21%
======== ========
Total Student Enrollment (2) 2007 2006
-------- --------
Mexico/Central America 95,300 82,100 16%
South America* 107,100 96,300 11%
Europe 21,000 19,300 9%
-------- --------
Total Campus Based 223,400 197,700 13%
Total Student Enrollment
at Acquired Schools(3) 4,500 --
-------- --------
Subtotal 227,900 197,700 15%
Online 35,000 28,300 24%
-------- --------
Total Student Enrollment 262,900 226,000 16%
======== ========
(1) New Student Enrollment is YTD, reported as of 4/25/2007 and
4/26/2006, respectively.
(2) Total Student Enrollment is census, reported as of 4/25/2007 and
4/26/2006, respectively.
(3) Acquisitions include: Universidad Valle del Bravo (Mexico).
Student enrollment rounded to the nearest hundred.
*Excluding AIEP, Laureate's vocational/technical school in Chile,
new and total student enrollment growth in the South America region
would have been 12% and 9%, respectively. AIEP has recently enjoyed a
strong rebound in enrollment growth after experiencing a decline in
enrollment last year. Annual tuition at AIEP is significantly lower
than Laureate's two other institutions in Chile.
Full-Year 2007 Financial Outlook
The following statements are based on current expectations. These
statements are forward-looking and actual results may differ
materially. Given the proposed merger agreement, the Company will no
longer issue a quarterly financial outlook. Additionally, there will
not be a conference call associated with this earnings release.
-- On a full year basis, the Company believes its 2007 income
from continuing operations available to common shareholders
will range from $1.63 to $1.73 per diluted share.
Fully-diluted weighted average shares outstanding are expected
to be approximately 54.2 million for the year ending December
31, 2007. The Company's earnings guidance includes the EPS
impact from minority share ownership purchase agreements
("minority put agreement") of approximately ($0.51) per share
and additional transaction related expenses of approximately
($0.31) per share, excluding compensation-related expenses
payable upon the closing of the transaction.
Non-GAAP Financial Measures
This earnings release contains certain non-GAAP financial
measures. Management believes these non-GAAP items provide useful
information to management and investors by excluding certain items
that may not be indicative of the Company's core operating and
financial results. Non-GAAP financial measures exclude gain or loss
from the sale of, and income or loss from, discontinued operations;
certain other non-cash charges; the impact from the charges related to
minority share ownership purchase agreements ("minority put
agreements"); and certain other non-recurring items. Reconciliations
of non-GAAP financial measures to corresponding GAAP amounts can be
found in the tables below and in the investor relations section of the
Company's web site, www.laureate-inc.com.
Reg G Reconciliation - First Quarter 2007 GAAP to Adjusted Results
(in thousands, except per share)
Three Months EPS
Ended 3/31/07 Impact
------------- -------------
Loss from continuing operations available
to Common shareholders $ (26,377) $ (0.51)
Adjustment:
Effect of minority put agreements 14,761 0.29
Transaction costs 9,303 0.18
------------ ------------
Adjusted Results $ (2,313) $ (0.04)
Weighted Average Shares Outstanding -
Basic 51,614
About Laureate Education, Inc.
Laureate Education, Inc. (NASDAQ: LAUR) is focused on providing a
superior university experience to 262,900 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. Many of the factors that will
determine the outcome of the subject matter of this press release are
beyond Laureate's ability to control or predict. Laureate undertakes
no obligation to revise or update any forward-looking statements, or
to make any other forward-looking statements, whether as a result of
new information, future events or otherwise.
Certain additional factors could affect the outcome of the matters
described in this press release, including particularly the
transaction contemplated by the merger agreement. These factors
include, but are not limited to:
-- 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.
-- The proposed merger could disrupt current plans and
operations, cause difficulties in employee retention and
require the Company to expend significant costs, fees,
expenses and charges.
-- The Company may be unable to complete the merger due to the
failure to obtain stockholder approval or the failure to
satisfy other conditions to completion of the merger.
Additional information regarding various 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").
Important Additional Information Filed With the SEC
In connection with the proposed merger agreement by and among
Laureate, Wengen Alberta, Limited Partnership and L Curve Sub Inc.,
which is attached as an exhibit to a Current Report on Form 8-K filed
with the Securities and Exchange Commission on January 29, 2007,
Laureate filed an amended preliminary proxy statement with the
Securities and Exchange Commission in April 2007. Investors and
security holders are advised to read the proxy statement, because it
contains important information about the merger between Laureate and L
Curve Sub Inc. and the parties thereto. Investors and security holders
may obtain a free copy of the proxy statement and other documents
filed by Laureate at the Securities and Exchange Commission's Web site
at http://www.sec.gov. The proxy statement and such other documents
may also be obtained for free from Laureate by directing such request
to Laureate Education, Inc., Office of Investor Relations, 1001 Fleet
Street, Baltimore, Maryland 21202, telephone (410) 843-6394.
Laureate and its directors, executive officers and other members
of its management and employees may be deemed to be participants in
the solicitation of proxies from its stockholders in connection with
the proposed merger. Information concerning the interests of
Laureate's participants in the solicitation, which may be different
than those of Laureate stockholders generally, is set forth in
Laureate's proxy statements and Annual Reports on Form 10-K,
previously filed with the Securities and Exchange Commission, and in
the proxy statement relating to the merger when it becomes available.
Laureate Education, Inc. & Subsidiaries
Consolidated Statements of Operations
(Amounts in thousands, except per share data)
Three Months Ended March 31,
-------------------------------------------
2007 2006 $ Variance % Variance
-------------------------------------------
Revenues (restated)
Mexico & Central
America (a) $ 92,222 $ 79,243 $ 12,979 16%
South America (b) 48,995 43,258 5,737 13%
--------- ----------- ---------- ----------
Campus Based - Latin
America 141,217 122,501 18,716 15%
Mediterranean Region
(c) 42,574 33,202 9,372 28%
Hospitality 17,286 14,895 2,391 16%
France 12,854 11,806 1,048 9%
--------- ----------- ---------- ----------
Campus Based - Europe 72,714 59,903 12,811 21%
--------- ----------- ---------- ----------
Campus Based Total 213,931 182,404 31,527 17%
--------- ----------- ---------- ----------
Laureate Online
Education 69,593 52,706 16,887 32%
--------- ----------- ---------- ----------
Total revenues 283,524 235,110 48,414 21%
--------- ----------- ---------- ----------
Operating expenses 272,931 225,360 47,571 21%
General and
administrative expenses 11,036 9,851 1,185 12%
Transaction Costs 9,303 - 9,303 N/A
--------- ----------- ---------- ----------
Total operating expenses 293,270 235,211 58,059 25%
--------- ----------- ---------- ----------
Operating loss (9,746) (101) (9,645) LT -200%
Non-operating items
Interest and other
income 6,095 3,722 2,373 64%
Interest expense (7,598) (4,121) (3,477) -84%
Foreign exchange loss (332) (111) (221) -199%
--------- ----------- ---------- ----------
Total non-operating items (1,835) (510) (1,325) LT -200%
--------- ----------- ---------- ----------
Loss from continuing
operations before
minority interest, equity
in net income (loss) of
affiliates, and income
taxes (11,581) (611) (10,970) LT -200%
Minority interest in
income of consolidated
subsidiaries, net of
income tax (1,492) (2,318) 826 36%
Equity in net (loss)
income of affiliates, net
of income tax (189) (109) (80) -73%
Income tax benefit
(expense) 1,646 (232) 1,878 N/A
--------- ----------- ---------- ----------
Loss from continuing
operations (11,616) (3,270) (8,346) LT -200%
Loss from discontinued
operations, net of income
tax (d) (9) (169) 160 95%
Gain on disposal of
discontinued operations,
net of income tax 440 261 179 69%
--------- ----------- ---------- ----------
Net loss $(11,185) $ (3,178) $ (8,007) LT -200%
========= =========== ========== ==========
Earnings available to
common shareholders:
Loss from continuing
operations $(11,616) $ (3,270) $ (8,346) LT -200%
Effect of minority put
arrangements (14,761) - (14,761) N/A
--------- ----------- ---------- ----------
Loss from continuing
operations available to
common shareholders $(26,377) $ (3,270) $(23,107) LT -200%
========= =========== ========== ==========
Net loss $(11,185) $ (3,178) $ (8,007) LT -200%
Effect of minority put
arrangements (14,761) - (14,761) N/A
--------- ----------- ---------- ----------
Net loss available to
common shareholders $(25,946) $ (3,178) $(22,768) LT -200%
========= =========== ========== ==========
Weighted average shares
(basic) (e) 51,614 50,436
EPS-Net loss available
to common shareholders
(basic) $ (0.50) $ (0.06)
EPS- Loss from
continuing operations
available to common
shareholders (basic) $ (0.51) $ (0.06)
Segment operating profit
(loss):
Campus Based - Latin
America $ (5,576) $ (2,435) $ (3,141) -129%
Campus Based - Europe 14,883 12,532 2,351 19%
Campus Based -
Overhead (6,463) (4,667) (1,796) -38%
--------- ----------- ---------- ----------
Campus Based - Total $ 2,844 $ 5,430 $ (2,586) -48%
--------- ----------- ---------- ----------
Laureate Online $ 7,749 $ 4,320 $ 3,429 79%
--------- ----------- ---------- ----------
a) Mexico & Central America includes Mexico, Costa Rica, Panama and
Honduras.
b) South America includes Chile, Brazil, Ecuador and Peru.
c) The Mediterranean Region includes Spain and Cyprus.
d) The 2007 and 2006 operating results present the WSI and IFG Laugues
business units as discontinued operations.
e) Due to the loss from continuing operations, the effect of equity
instruments is antidilutive
LT = Less Than
CONTACT: Laureate Education, Inc.
Rosemarie Mecca
Chief Financial Officer
410-843-8070
or
Chris Symanoskie
Director, Investor Relations
410-843-6394