LAUR - Earnings call transcript Q1 2018 | Laureate Education, Inc.

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Operator

Welcome to the First Quarter 2018 Laureate Education Incorporated Earnings Conference Call. My name is Sylvia, and I'll be your operator for today's call. [Operator Instructions]. Please note that this conference is being recorded. I would now turn the call over to Adam Morse, Senior Vice President. Mr. begin. may you Morse,

Adam Morse

Hello, call thank first to results. Operator. us quarter for on today's discuss everyone, you, you and joining XXXX Thank Laureate Education's

me Officer. JJ Charhon, Serck-Hanssen, Financial Officer; are Berckemeyer, Joining Silbey, Operating Chief call Chief Victoria Officer; Legal Chief President; Executive Ricardo Eilif and Officer and the on Chief today

our laureate.net. Our earnings on available at is the Investor website press release Relations section of

you some forward-looking financial remind and is to applicable which being posted within information like a our but constitutes and the guidance, call. of supplementary that we'll laws. website, be also the statements we're today's including, providing after referring have securities today, recording We The operational complete on to, the call webcast a the available limited not will during to meanings of presentation be U.S. I'd call.

factors Forward-looking may that in made are we actual may morning and and differ statements XX-K materially therefore, Securities results change at Form with our Form Important filed could risks subject those our SEC. expectations the are time other on and, to differ results that uncertainties from report U.S. materially our Commission, as cause actual filings to any filed well annual earlier the as our XX-Q this with Exchange from disclosed expected.

call, addition, we statements. undertake based statements of to on conference any are of all forward-looking this and forward-looking the no In current expectations date as update obligation

for SEC. discuss, let including Form and GAAP remarks. turn our we With EBITDA, included that their release the counterparts to call and over me filed measures non-GAAP press to with that, XX-Q Eilif the also our opening Additionally, adjusted are detailed in reconciled in

Eilif Serck-Hanssen

first earnings completed on thanks on quarter, and XXXX I for pleased Having report to very the intake that to strong is our just Adam, call. line to a and us the closed off start. enrollment you, am Thank everyone joining large today's

now accounts to commitments increasing intake we run positive guidance, our strong results which cycle, key growth am our margins, and strengthen very delivering with internal markets. simplify progress accelerated plan solid designed most activity, Walden, about Brazil, sheet plans. This we the and on to risks, mitigate generation. to improve enrollment for our continued XX% ahead in our new back enrollment results enrollments free are at are of our balance total growth, with other enthusiastic on our cash of is quarter were April investors new the X%, initiatives our progress and approximately first of business, which and and making I robust, and Our in was through year's our improve flow

shortly. and close of Italy, cause reach the our with in net St. further we to an debt allow to the announced and level, Once announced end will this XXXX. Cyprus, asset closed by we combined These performance, for leverage expected with a Germany, expect debt X.Xx During transactions, April, month strong operating Malaysia sales China, quarter institutions ratio and previously Morocco are the through school and in for the of million for EBITDA. States physical XXx simplify we the More United therapy the implied operations our closed, Augustine, sale recently, asset of of potential University reductions. doctorate $XXX further additional valuation approximately of transaction to

including cash while very to is markets. to key some starting throughout of our of are Paulo, students enrolling by model a with Peru for key the that continue This this implementation expected And is center two of maintaining we going the opening both delighted well, leadership. the EiP plan increasing already have front, of innovation medical São and growth which Laureate. deliver of in Our of margin and gains schools in those product network. in interior start flow expertise experiences track the to and developments half expansion our Sciences for during in and the I'm company a the Brazil, initiatives initiative second students Brazil prospects margin year. generation, according our for Health terms new free operating of on improved to our common exciting the

to control years. we important the and to in an serve recognize as testament recently determined lot progress of continue that success has constitutional I this the Laureate, court recent a its top Laureate vocational I the network. also constitutional expansion programs network to held event. elite to our received market. will the a Chile. Tec on We scale the With favorable in to institution Monterrey, first Chile, Quality UVM will universities of be in Honduras, prior hand programs The we want first Laureate activities Mexico. updating on of program, There's surpassing full the around this do. in important maintain our and also clarity open student the in is year institution, the veterinary approval slot network consolidation our in thus, to school Mexico, take technical update kind Chile. hand. Monterrey, like excellence all, guidance in want students the provide commitment welcomed that This enables are to regarded country. XXXX in court, of in nursing are recently of powerful Laureate new reflect into that our of in the good rated our the that in most institutions excellent a country. with as will everything frequently we Institution moment our continue Moreover, highly a this accounting permitted which cohort the for-profit received XXX the provided to center go we and recognition outcomes to de prestigious which And in by academic institutions, students developments

framework outcomes, with and strong look in to we strong Our in ahead moving student regulatory innovation country. brands much in unparalleled resulted Chile this clearer and product forward have a

at strong solid and a a improved was year the significantly with many this quarter, quarter key growth enrollment to Walden conditions, during first results to start progress the operating new throughout network, initiatives. The on return continued regulatory

We deliver commitments are positioned to our on during well XXXX.

Now JJ to it overview over the for me financial the turn for quarter. let

Jean-Jacques Charhon

Thank Eilif. you,

I Appendix to illustrated the running of seasonality which couple remind financial everyone slide of is the Before in a want results, reference, the on the through our deck. slides business, in for of

first which new session and for fourth quarters P&L the quarters you the from for and the low periods, our generate and periods. as most of year, are As two intake perspective majority adjusted of year out the total most Conversely, largest third enrollment for of not a classes those know, for are XX% are revenue account approximately of the of seasonally enrollment-intake EBITDA that the large represents months. second activity but

Revenue essentially period The was in XX% XXXX. represents the me On $XXX we reporting context, of a Page compared year. quarter so the first covers large EBITDA the million, a basis, $XX versus to highlights increase first quarter X% run new through let first are on about million, enrollment a for activity With period year same adjusted that was you flat XXXX today ago. of the reported quarter of X. a our typically intake that starting the

very basis quarter, $XX China of year-over-year. during our the a a better all about to due in QX. the of than our short, fourth constant early quarter However, EBITDA the currency up good In which when in guidance we expenses This rephasing Cyprus, was on March anticipated Italy, institutions the for adjusted closed is in earnings adjusting is to XX% sale first XXXX to year. million our occur provided and the call and mostly during originally start

Now X. the quarter let our key detail on Page few a more me in minutes spend metrics starting operating for first discussing

the in intake enrollment geographies, in Peru, represents the Chile the Brazil, reminder, our new and southern a activity As quarter namely for institution hemisphere first largest Australia.

first markets hemisphere northern smaller all have quarter. the hand, other the intakes during On

their will largest in occur the intake fall. them, For

Lastly, enrollment focus for is performance, April, first outlined This the our Partnerships intake ran to segments, on Online through is Page I'm & year, cycle X. going across month on evenly the the so which intake year. of April year-to-date more distributed their

company, our to line year, For new enrollment compared the in prior total as with was X% grew period for expectations. the we which

Brazil well us. few for Now highlights. very our perform to continues

Learning versus period same the year ago. new a grew business XX% Distance enrollments by Our

& ahead in our In our our by further face-to-face offset approximately payers, to up Australia doing Mexico, continues in Iberian more in deliver new We UNITEC our largely mixed, of business premier economic enrollments, led top was New eroding performance, the cycles. resilient offset Mexico, These our of reduction business very line enrollment segment markets associated in The was in UVM. experience the view, portfolio benefits strong Peru. continued economic with with new a confidence of for our brands, opposing consumer in election. X%, presidential now did, enrollments. our partially in reflects, environment XX% well accounts by by growth growth strong approach our performance intake like which downturns which to is of strong growth performance about EMEAA, FIES-related In institution, X% in XX% the of was growth enrollment activity. Andean mostly our of however, only making more dynamics for with weaker challenging during

and as planned enrollments intake slightly Finally, our Online of Partnerships down partnership lower our for that revenue we new away students margin-producing in segment. business the were from transition because & period in declines

encouraged We the be enrollment where was since progress Walden positive year. growth of our for first to time continue by last at new QX

have her would for back team this quarter. and Although, work Paula returning to still leadership to to I business, strengthen this congratulate growth we Singer further like Walden

results, was move versus find adjusted XX. year X% basis, EBITDA period On first will Page to our revenue a quarter same comparable ago. our a let's revenue you and Now the on up which

digit Our positive our growth, to in markets. of campus-based delivered key operation mid-single most dynamics thanks

expectations. with on adjusted basis, calendar. Brazil specific the implementation XX% reduction across already, was This EBITDA helpful, segments the well note, changes indicated up exceeding program. our the as great reflecting the and FIES as challenging that our in most associated of given is improvement pricing our market in academic As following news margin Of operating of comparable benefit in model a continued is dynamic

our down of factors. X As Partnership because & XX% is you can segment our year-over-year see, EBITDA for Online adjusted

first to the First, caused period a as lower-student quarter the last compared XXXX. from base weak-intake which in September,

supporting for of the expenses marketing increased new increase enrollments. Second,

debt note on which of gain Please our reduced is year the result quarter let me in the income XX% our Page in million for the debt. cash the and our also lower China. a almost was the reduction sale Italy, flow for Cyprus versus cost businesses up starting $XXX and the and to net levels quarter XX. Net on interest income discuss thanks of briefly expense, ago, of results Now

Series timing, structure, continues capital our be the noting in Page our in remind during XXXX. significantly capital Statement on is mostly of of as from versus find Moving Free for working in for assets. into obligation quarter. on XX.X forward. of Brazil. a to thanks that common now will up our preferred million percentage XX. the change to our our cash which million for to of all $XX low net shares, worth FIES in equity and the quarter, well Registration period preferred was prior working capital our million XX, going interest simplified A convert filed a to you capital quarter to the cash let reduction the eliminated the flow operating the dividend Class receipt Shelf as difference in outstanding year, Also $XX structure company process, change the result flow me you the A paid This the Adjusted April In was to timing regard a

the result, now million shares a outstanding. approximately company As has total XXX

little detail to Page guidance, Before moving a as with provide bit noted XX. you let Chile on me on more

of part the like issued The XX, that XX, As universities. Court of you conditions quarter for financial of Constitutional find let the our Laureate declared required on which new continued Chile things, means, to review you of second in all walk met. unconstitutional, which XX Chilean provision April Court affirmed X-K will consolidation controlling mind, would you the other in now from referred as be the year that XX. prohibited new me most of and its through law. to With all for-profit from full filing guidance, know of on decision our Page as articles among This often our the that on organizations Article Constitutional law, universities have March

includes unchanged cash the Chile, guidance flow U.S. EBITDA for same development $XXX expect a unchanged. EBITDA been prior $XX based the for X,XXX,XXX Given expected the increase set the be now respectively. for approximately spot U.S. provided new full for million but a expected, XXXX, be adjusted XXXX also in metrics revenue of tax million. remain the our to to financial also EBITDA the strengthening amounts guidance, and of operating also note for the year outside most compared the between associated when $X,XXX,XXX,XXX impact and year FX between for Revenue students. that and increased Total to associated between previously of guidance as the in stub Please have impact X,XXX,XXX expected $XX all our of million rates and materially for functional rates growth the interest, of by clarity, enrollments comparable on X with $X,XXX,XXX,XXX. period million, remain rates, based $XXX current Adjusted It with on adjusted higher. includes, CapEx, $XXX recent end unfavorable and announced basis, On absolute the currencies the FX dollar divestitures. against our and are now million XXXX, is spot to The are, current rate is organic

$X,XXX,XXX,XXX; quarter. markets. of year is is Mexico affect in towards $XXX growth million. included half the most be to to into in is With setting expected for of will and as guidance and second will more couple year, that of between in and Walden These context second have in EBITDA marketing expected A be translate comments. the guidance move the to having been our earnings half two is in the second and improvement our continue to the expenses year. the let's weighted Also of mind, revenue our half, adjusted full revenue the second for phasing the quarter. Now of This these heavily performance $XXX first quarter in our the dynamics follows, EBITDA between adjusted million our second expected $X,XXX,XXX,XXX

Eilif for turn now me to it Let over the wrap-up.

Eilif Serck-Hanssen

am JJ. ago. management months proud IPO I you, XX Thank the Laureate what accomplished our has since of extremely team only

management the company Resource into strengthened new CFO, welcome with Laureate Ricardo a individuals most such have and new General Chief Paula Singer, Officer assumed as new Information new Officer. We have and Further, leadership Chief Berckemeyer recently, We roles. Counsel a these a veterans, a new also Human important team.

intake We and expenses. been up have has company simplified have and the reduced dramatically, organic I'm student which levels has us been into solid with during and delighted second the on quarter, priorities debt well-defined. Our we overhang the quarter the cut Regulatory with significantly basis. XXXX set head first reduced, robust for a an our

focusing of excellence, are execution create a flow with significantly will we operating model, conversion. and strong simplified further on organization all free improved scalable believe a which operational We cash more

and great excited are concludes we our on executing am our what and commitments remarks, of delivering and We future I to prepared on to take Operator, this confident are very questions. and plans investors. happy that company our accomplish. the about will can now

Operator

BMO Silber Markets. from And first Instructions]. Jeff comes [Operator Capital from question our

Jeffrey Silber

Chile. to Is us going wanted this last? appeals? issue? to is what's there of the basically are with Just start end what to this Or now going first telling be you Are

Eilif Serck-Hanssen

changes The permitted which Jeff, Court our Constitutional consolidation. Laureate ruling we now Constitution. Eilif. require for-profit universities, is with then significant specifically, change this any organizations control ruling are provided is to private Constitutional and will in some like shared you supports a The final to as clarity, have the Court that

Jeffrey Silber

and but Did small other relatively that's you talked what see be helpful. to space minor one processing Is this That's that about delays, percentage you in on companies of that? financial I of of forward? this is a going is something know you do. great. any then Brazil, impacting probably the Okay, And issue, the going

Ricardo Berckemeyer

time It delay This students. really processing that is When those to of no actual was cycle. of Ricardo was a the Berckemeyer. FIES in delayed. released there government extremely, the been enroll had We saw the approved, throughout extremely the contracts FIES

on Our the we a is it. could but not the there be minimal is second for and exposure potential situation that now to cycle, are counting FIES reversed really

Jeffrey Silber

JJ, Can used specific us the segments are talking words you guess, that of you bit little a what there you think in then the of And I great. quarter, expenses Okay, type about? color give first more a about had in maybe expenses, I more half. the phasing are impacted are others? And first than

Jean-Jacques Charhon

Sure. the board discretionary across Well, terms it's expenses. in of

the first, I of think decisions think was to of based the year. think, made on on focus priorities some towards effort. company-wide to and And a equally the I second up start part really it of most these really, the enrollment supporting the segments impacts, initiatives intake, I the this were

Jeffrey Silber

just just those Augustine, include check. This number question on is then want occur? quick and correct?? Malaysia X, that expected when St. potential does to the roughly divestitures I And X both guidance. the Okay. And updated are of to double

Jean-Jacques Charhon

does. it Yes,

three think we reflect the I So to updated elements. guidance really

First of of on all, as some are ones the that that either announced not Chile. impact the The ones closed the revised rates. stub really been as FX that divestitures, with associates here well the or outlook signed have

We May. the of hold expect the it U.S.A, to closing is timing year. for for November. then University expect Augustine, be to St. Right to around we most expected on the now, of assets And for

Operator

comes Peter question Piper following from Our from Jaffray. Appert

Kevin Estok

Congratulations do with on This is has the margins. Kevin Estok question on for My great first Peter Appert. quarter. to

look for that comfort but XXXX, beyond your So wondering you think, delivering margins should I what's color guess and at I'm gave I some in we XXXX how growth? margin

Jean-Jacques Charhon

Day, year which for points the XXXX roughly is we basis outlook increase XX no than basically three our next remaining about per years. for different into really the are would years presented translate Investor Really, speaking. for thanks JJ This and two the Yes, what at question.

And provided unlevered basis also we we closed points provide guidance or years, where phasing. XXXX. X points two for those similar didn't XXX versus any then flow cash another, So around but

Kevin Estok

second opportunities. what guess biggest without like are to I'm in? markets guess wondering question has The I you And growth where And I do of be I to had are not in some that most opportunities? see currently growth you guys you

Eilif Serck-Hanssen

Kevin, this is Eilif.

growth, robust strong on be to in Near-term a have growth really markets network. growth organic scale In where to to terms for and organic is across focused a get of we already us are seeing we footprint. going the

outside. example, a Similarly, So City. Peru, Mexico we largely opportunities which of of opportunities Mexico, for institutions. us operation- X Lima I now and interior, outside Brazil. shared City our new we medical rapidly brand, with in excited about behind to are those Lots our are are be white a operation traditional in university is grow X still X for schools, the in of with that, prospect a full all space largely would UNITEC brands coming opening operation with The you, Mexico

strong So of our core in really organic growth markets. some

markets XX be, we already. through we the sheet, have will presence you in As the to scale continue strengthen focus for get And continue strong markets know, to where M&A. XX a our new enter to months, typically balance next our

to So near term. the minimal medium in M&A activity

Operator

Rosenbaum Stifel. Following from question from comes Shlomo

Shlomo Rosenbaum

company can been And to for payments. of hang What's just going give us reimburse some you a while? the -- Turkey. approval but a subsidiary, on BILGI to over Elif, the have some a line disallowance little and a of out sight what's there Or to XX-Q, there is for resolution? seem to some going is there? had some to on then There the in payments update

Eilif Serck-Hanssen

you, Shlomo, that for questions. Thank Great.

As recall, to in paths situation we regulatory resolve you are Turkey. presuming our may two

But can foremost, rights lengthy administrative process. through and all the relatively you imagine, we a are court that's pursuing system. as First

the contractual to I conversations in with and very as we the of in encouraged information indicated, be has we full with It focused are now We in good filing needs arrangement productive which are -- still discussions. the a we on with So have to contracts restructured am some of permitted us, we -- which we we share will that the we very And to these arrangements. with regulator. parallel, discuss you. on limitations the bilateral in are to are standing. the get on But the working enabled contracts are making as manner ability today, which by regulator, the having that our repurposed, and a be contract challenge in on or clarity when these regulator. good progress with standing But continue and in

Shlomo Rosenbaum

been other to was then, still if In strictly words, is of it And Okay. have raised be because would coming Chile guidance JJ, really in? Chile deconsolidated? back

Jean-Jacques Charhon

have guidance facility would Chile. the we is here minor is included would strictly majority answer a but adjustment It the with purposes. short been to the just associated the have guidance, of stuff the So for

Shlomo Rosenbaum

free And it there? remain the if Okay. guidance and the is -- flow cash is the then I mean, you're cash translating EBITDA over increasing to same? why not

Jean-Jacques Charhon

were elements really So two as have revised you our may we that guidance. noticed, factored there into

FX. The was first one

down second assessment actually The management for that This Europe. assessment as decided better and is pay to really the $XX that a actually we is number collateral lower were really LC tax assessment secured -- it cash through accruing. pay an of which basically, tax would interests still down and a one in to penalty the purposes, and upfront avoid have thought was we that roughly million, $XX we million, be

with think impacted flow we're turnaround of second and between guidance. still moving cash looking pieces reflected our really by 'XX I number that the 'XX of Obviously, a associated is but as So a performance element major flow, there. that cash at

Eilif Serck-Hanssen

to add just me Let that.

flow this is a of the more So within cash statement. geography issue

tax and collateralized $XX of disputed funds got So of the a cash we amount deposit we $XX paid on return. then million million in

$XX million perspective, cash LC free is not. net the liquidity us. $X there, flow cash million the the calculation, better the from this was for gets receipt collateralized tax payment the while in netted a of But in from So

purely issue. is it geography So

Shlomo Rosenbaum

would by, just to so, but the the how the it's mechanics working really, or say, it's it gone have So system? million of up $XX

Jean-Jacques Charhon

the and right or takes more puts way guidance, it. one obviously but to about less. we've There's Yes, versus that's provided think the

Shlomo Rosenbaum

for it seemed that like, in slide leverage reduction? factoring net divestiture materially, X.Xx down Okay. debt is St. the the repurposing from Augustine go and after And proceeds the the not then would

Jean-Jacques Charhon

at be sheet the using the finalized proceeds Augustine sale business; business second, point So additional and of the University in this going balance U.S.A. which we're of then the eventually we really to is do time, to same, some the investments. with way Our the and support haven't de-risk first priorities associated remains St. deleverage the

there So is of points, that by ratio course, potential, leverage bring basis XX which... to above down further

Eilif Serck-Hanssen

X.Xx turn. of a

Jean-Jacques Charhon

X.Xx point but go of turn, point low in as this committing could a so we at that we're as not time, X.Xx rate, to it.

Eilif Serck-Hanssen

That transaction is not closing into November.

now the But and even will our we'll November, proceeds transformation between you of one to and specific So we more back analyze debt plan. and get use strengthening sheet key then our of balance pillars with in clearly, reducing guidance. is our

Shlomo Rosenbaum

Great. 'XX And forma is question, with order numbers or in all and for final pro 'XX we there the somewhere various a for where chart use impacts? divestitures could model to then just the

Jean-Jacques Charhon

to update metrics. and had divestitures should we quarters XX-Q. Page at that Yes, the obviously all XX, continue provide that so impact filings, them in can last to the find trailing we've X to XX-Q committed associated earnings On provided the now call there looks operating these you be in is a precise. the the with with future in that now schedule basically We and on that

Operator

Jeff following question RW And Baird. comes Meuler from from

Jeffrey Meuler

including Augustine? think St. re-baseline the is EBITDA, XXXX. -- from trying Page stub to both Just revenue we the XX, it's divestitures, assumed about period and guidance, XXXX the to what maybe as from all contribution but on for of Yes,

Jean-Jacques Charhon

Sure.

know, the changing you kind the is when of the part million. of give first about million only be EBITDA me, Augustine, and University it X we all, St. then U.S.A. month. is missing you let really guidance we impact provided impact $XX Day, So of on at is Investor adjusted versus $XX and revenue could about that for on the as materially And

guidance. not it's in a major of So the change driver the really

Jeffrey Meuler

Right. is what XXXX? you the and going revenue think as XXXX baseline that like-for-like modeling off are this trying to grow we think I'm to about of just about EBITDA

Jean-Jacques Charhon

earnings of details provided on additional all the We've absolutely. the really package. XX Page Yes,

So you'll the adjusted breakdown divestitures of about pending of and the for find between million and million But there completed the it's EBITDA. $XX pending divestitures. divestitures, $XXX revenue the

Jeffrey Meuler

the big But Brazil, I'm guess just in terms of student that any market, some big much do the for obviously by on Distance is some shift preference have And a Distance differential? I ambitions I and what's at Learning? guessing just then is margins, being margin of face-to-face you of comments for how face-to-face at you Distance margins Brazil about And Learning. how Okay. impacted is preference. scale, think scale? between know that then that but in expanding student the Learning

Eilif Serck-Hanssen

is face-to-face sorry, payers, a on believe, In combined. XX% -- grew smaller grew face-to-face, on grew this So percent, X% we XX% base. Eilif. on from XX-plus XX% I a we Learning, much And Distance but

excited environment Distance That's us about with part strong us. to which momentum the the we're business. we So of but for What is for brands Learning, nationwide in the very, we go by encouraged smaller much very our very on are -- a very are exciting getting segment. regulatory that in on business Distance business, new the Learning a enables DL our it is

take are as business. we the going margin next we our profile Brazil in market, The of mid-XXs business that profile to believe the the teens margin common operating years above that we profile face-to-face is on the is we implementing, on structure to it call average in model. that we couple over in asset-light going the market. are face-to-face the the Distance and strong, get Brazil, to relatively which Learning, is what margin And Given speak, model from our of then a

those that's So we the about thinking profile are X how margin of businesses. growth and the

Jeffrey Meuler

due impact relatively the FIES new what exposure delays? enrollment but small, you do FIES, know I And have estimate are the Okay. this to of FIES an was quarter

Ricardo Berckemeyer

year FIES first had XXX. we contracts. year, Last the in had This Yes. we quarter, X,XXX

Operator

comes Alex And Barrington question from from following Paris Research.

Christopher Howe

for Paris. to regards Accelerator the in This first Plan. Chris My Alex in just was Howe is sitting question

specific the can And health markets curious current state currently being outlook outlook second and sciences. the sciences considered there you you other question that niche within Perhaps health shared. kind what was the and the for new medical what moving of are as These that Just to in outlook contributor the my enrollments beyond health on a is if are the regard part could the schools, currently and forward. sciences they of is there be comment mix. to X positive what

Eilif Serck-Hanssen

with Starting Plan. heavy done Accelerator lifting now the Sure. and been Accelerator the has essentially for the completed Plan,

negotiating have that the for then X other are and Accelerator for Plan market us small will a market original It's We divestiture. that we conclude sale.

Presentation, presentation and recall laid basis portfolio our an using out we on we you as the assess to on from Investor which are we from to regular January of XX be our will framework ongoing January reviews, portfolio. a will composition However, as XX committing undertake

I'll pause address your and second, for there a Accelerator So does question? Plan that see

Christopher Howe

that Yes, does.

Eilif Serck-Hanssen

I'm Great. sciences outlook. Ricardo ask and to health address strategy to going Then your

Ricardo Berckemeyer

to very persistence, sciences and vertical, strong high-quality launch very In the CX Health with Initially, be of this of only in et Medicine one, great continues degree, we It's vertical the year outcomes, the Brazil, employability, us. the only. interior medical Paolo. X case will Human profitable for medical want low great in as very tuition licenses attrition well a we these in São largest and the schools high cetera.

allows But license enrollments. us the with So around XXX go XXX soon portfolio to scope. full-fledged and that, to after

be should those on X,XXX students maturity, campuses So to X,XXX around each.

Operator

Manav comes following question Barclays. from Our Patnaik from

Ryan Leonard

for is filling in Manav. This Ryan

we the table to I don't some sure that law Congress chance I a the guess, on Just there point. go down want back a on back not ruled can and then in sure to court mean, be the or make understand make that I anything path. tweak the it's could come the there's put Just slight that the is similar language it, front back Chile, that something of just in going at like of that? underlying to

Eilif Serck-Hanssen

can, send is been laws, both law any changes that the the of of we Law has signed for in The now through Congress legislators agenda, was the in effect. now, the it's it's you propose developed time law is course, new course, amended law will so at old the Right and XX, will the and old Article in Then Constitutional his Court the which it's up a up Houses Higher something new a Or law. place, both by renewed to by by I the haven't of President as prerogative. that as new has is have to process, effect, of then back on either go or Court Constitutional the that new drafted to legislative which heard, process. there Houses Then remain sign but parliament. to new currently Education a but

are are So that on table. X the the those options

Ryan Leonard

Got it.

on there'll operation? Chile long legislative would before time runway impact Okay, so a of on an event have be another

Eilif Serck-Hanssen

I comment know. suggestions don't even so new on I process, haven't about can't any a that. We of heard

Ryan Leonard

in opportunity there? are some Okay, Is help fair the enough. And you then your is has on that, geography that. growth help of of big more versus the lot Brazil, Learning, us competitive changes. other Does there? There Or what understand regulatory brand based? name Distance players a market? in Can been obviously, the it advantages the the you in

Ricardo Berckemeyer

we've DL increased side years, the two the Yes. of In tremendously first in our business. distribution the network

now XXX polos. have We over

Brazil, We the XX% backed and scaling very growth is process that brands universities believe best very execute, has that important solely in to in to brands concentrating in our having of I markets, due to students business. the the of are very country, success prospects. portfolios and on the The the to strong future okay. one we're but very, are the Laureate management's rate of those by in ability appealing

Eilif Serck-Hanssen

positioned social particularly that, think on, when predominantly in universities part well, And to full-fledged to we focus Brazil, add on are as economic I are These that the High pay. sciences. relying faculdades. are of is serving higher opposed health private us also network, the institutions as would that positioning in Laureate I up the pyramid.

Ryan Leonard

just something the And schools feel divestitures, that was at pretty as yes, it. that I portfolio of that And early -- is this St. ongoing? the some be today, Got of the was on on? look identified good more opportunistic? Augustine do most Or -- you divestiture all for was it one the we're targets could completed? you in identified the Or of guess,

Eilif Serck-Hanssen

has So it, it hard Augustine Plan. is very state asset and of licensing Accelerator it with part St. to a initial which network. asset. the incorporate very Augustine not global institution our makes It's a associated very was U.S.-centric specific that St. into great

where way of curriculum, faculty doesn't in common really exchange, exchange, of we the dual to, universities engage principles of back University the I going think, network with laid the again, rest our our portfolio the presentation St. out with traditional on So core member integrate XX for that review, Page found we our other Investor January Day XX that Augustine student terms other each degrees. in

SPA couple find those start for asset. ago to of signed differentiators, lend really And, decided we St. All weeks to process the and definite a hence, a itself that of Augustine. didn't we

Ryan Leonard

ongoing it? I see And mean, obviously, just comes analysis if going out forward, and well, this of doing to then you're similarly, type of be anything going

Eilif Serck-Hanssen

as with would re-underwrite the But portfolio assets lifting basis. that We the part will our is continue, the to Plan timely planning annual basis, have we right heavy but our we products. organizations regular will in right clearly, on do the process, markets we make always, sure on Accelerator right of a behind of us, most a the like

Operator

Our comes Mazari from Macquarie from following Capital. Hamzah question

Hamzah Mazari

Is The the you partnership But a less referenced to of that get going in this, Walden portfolio I and then you focus may of know just to is could does on And is just, partnerships, maybe just partnerships touch long maybe how touched us the of first forward? the just the de-emphasis on returning partnership on volume? International of on process for frame you growth. have what side. mean? just side, question sort sort higher-margin the is

Eilif Serck-Hanssen

that for. review that found, we we had that again, hoped we results to yield partnerships didn't have similar the portfolio So the

So partnerships. refocusing we're some now core around very

U.S. great a specific going and great infrastructure very which exiting focusing domestically, an segment de-emphasizing we or It reputation So business. either brand, a Liverpool Walden, brands market brand, of focusing those has had a for or it's some area. well where internationally. our other University, better versus remains the efforts are us with, And more in to it that win of as partner is great But in we of core. on more be relationship important important that similarly, much to we are and a

think So where have all markets the a we our that just they in right to of online refocusing we're win. brands

Hamzah Mazari

question. just Great. a And follow-up

your the FIES as funding. longer is on You touched look from are sort or there should impact? to, Or there term, know of anything you of to of is any that the touched regulatory positive low horizon? or perspective else, nothing attention I Chile. it on markets We Is paying visibility, in either Brazil, pay on specifically but anything attention a else negative you that sort investors

Eilif Serck-Hanssen

earlier or the mentioned we and focusing us are But on environment. Shlomo is -- core Turkey, very addressing asked a that. that's for about where that earlier market regulatory

environment. I portfolio and think have well-diversified a we regulatory constructive very

Operator

ladies have Thank We Thank for concludes questions. conference. you, you further This today's no gentlemen. participating. and

now may You disconnect.

Eilif Serck-Hanssen

Thanks.

Laureate Education (LAUR) 13 May 182018 Q1 Earnings call transcript