Laureate Education, Inc. (LAUR) Bundle
A Brief History of Laureate Education, Inc.
Laureate Education, Inc. has undergone significant transformations since its inception, focusing on providing higher education services globally. As of 2024, the company has established a strong presence in multiple countries, primarily in Latin America.
Financial Performance Overview
For the nine months ended September 30, 2024, Laureate reported revenues of $1,143.2 million, up from $1,074.9 million in the same period of 2023, marking a 6% increase. This growth was driven by higher average total organic enrollment, contributing $52.8 million to revenue growth.
| Period | Revenues (in millions) | Direct Costs (in millions) | Operating Income (in millions) | Net Income (in millions) |
|---|---|---|---|---|
| 2024 (9 months) | $1,143.2 | $858.9 | $249.8 | $202.8 |
| 2023 (9 months) | $1,074.9 | $810.4 | $228.8 | $65.5 |
Operational Segments
Laureate operates primarily through two segments: Mexico and Peru. For the nine months ended September 30, 2024, the revenue breakdown was:
| Segment | Revenues (in millions) | Adjusted EBITDA (in millions) |
|---|---|---|
| Mexico | $615.2 | $128.1 |
| Peru | $528.0 | $209.4 |
In Mexico, revenues increased by 10% from $559.5 million in 2023, while in Peru, revenues rose by 2% from $515.4 million in 2023.
Stock Performance and Shareholder Returns
As of September 30, 2024, Laureate has returned significant value to its shareholders through stock repurchases. The company repurchased a total of 2,607 shares at an average price of $12.62 and 2,115 shares at $14.64 in two separate transactions during 2024.
Debt and Financial Obligations
Laureate's total debt obligations as of September 30, 2024, included $66.0 million under the Senior Secured Credit Facility and $38.0 million in other debt. The company has maintained compliance with its financial covenants, with a Consolidated Senior Secured Debt to Consolidated EBITDA ratio of 3.00x as of the last quarter.
| Debt Type | Amount (in millions) |
|---|---|
| Senior Secured Credit Facility | $66.0 |
| Other Debt | $38.0 |
Market Position and Strategic Initiatives
Laureate continues to focus on expanding its market presence through strategic initiatives aimed at increasing enrollment and enhancing educational offerings. The company reported a 9% increase in organic enrollment during the fiscal quarter, contributing significantly to revenue growth despite foreign exchange headwinds.
Recent Developments
In 2024, Laureate has focused on restructuring efforts that resulted in a discrete tax benefit of $37.9 million, which positively impacted their net income. The company’s focus on operational efficiency and cost management has led to a decrease in direct costs compared to the previous year, despite the increase in enrollment and operational activity.
Future Outlook
Looking ahead, Laureate Education, Inc. aims to capitalize on its strong enrollment growth and strategic investments to further enhance its educational services and expand its market share in the higher education sector.
A Who Owns Laureate Education, Inc. (LAUR)
Ownership Structure
As of 2024, Laureate Education, Inc. (LAUR) has a diverse ownership structure that includes institutional investors, private equity firms, and individual shareholders. The significant shareholders are:
- Snow Phipps Group, LLC - Major shareholder with a substantial stake.
- Torreal Sociedad de Capital Riesgo S.A. - Another key investor involved in the ownership structure.
- ILM Investments Limited Partnership - Holds a notable portion of shares as well.
- Board Members - Various board members also hold shares, contributing to the ownership mix.
Shareholder Breakdown
The following table illustrates the major shareholders and their respective ownership percentages as of September 30, 2024:
| Shareholder | Ownership (%) | Type |
|---|---|---|
| Snow Phipps Group, LLC | 15.4% | Private Equity |
| Torreal Sociedad de Capital Riesgo S.A. | 12.3% | Private Equity |
| ILM Investments Limited Partnership | 10.5% | Private Equity |
| Pedro del Corro García-Lomas (Board Member) | 2.0% | Individual |
| Other Institutional Investors | 30.0% | Institutional |
| Retail Investors | 30.0% | Individual |
Recent Stock Activity
In 2024, Laureate Education has engaged in stock repurchase agreements indicating active management of its equity. Notable transactions include:
- On March 5, 2024, 2,607 shares were repurchased at $12.62 per share, totaling approximately $32,894.
- On May 6, 2024, 2,115 shares were repurchased at $14.64 per share, totaling approximately $30,958.
- During the first nine months of 2024, a total of approximately $36,148 was spent on open market repurchases under a $100,000 stock purchase program.
Market Performance
As of September 30, 2024, Laureate Education reported total assets of $1.93 billion, with significant contributions from its Mexican and Peruvian operations, which accounted for the majority of its revenue:
| Segment | Revenue ($ in millions) | Percentage of Total Revenue |
|---|---|---|
| Mexico | 615.2 | 54% |
| Peru | 528.0 | 46% |
| Corporate | 0.1 | 0% |
Financial Overview
For the nine months ended September 30, 2024, Laureate Education reported:
- Total Revenues: $1,143.2 million, an increase of 6% from $1,074.9 million in 2023.
- Operating Income: $249.8 million, up from $228.8 million in the previous year.
- Net Income: $202.8 million, compared to $65.5 million in 2023.
Debt and Liquidity
As of September 30, 2024, the company's debt obligations included:
- Senior Secured Credit Facility: $66 million
- Other Debt: $38 million
- Finance Lease Obligations: $50.9 million
Cash and cash equivalents stood at $134.4 million, providing a solid liquidity position for ongoing operations and planned expansions.
Conclusion on Ownership Dynamics
The ownership structure of Laureate Education, Inc. reflects a combination of institutional and private equity interests, complemented by individual board member holdings. This diverse investor base contributes to the company's strategic direction and operational flexibility in the competitive education sector.
Laureate Education, Inc. (LAUR) Mission Statement
Overview of Mission Statement
Laureate Education, Inc. is committed to providing high-quality higher education programs that are accessible to students globally. Its mission emphasizes a focus on delivering educational services that empower students to achieve their personal and professional goals. The company operates under the guiding principle of fostering learning environments that encourage academic excellence and societal impact.
Financial Performance
As of September 30, 2024, Laureate Education reported total revenues of $1,143.2 million, an increase of 6% from $1,074.9 million in the same period in 2023. This growth was primarily driven by a 9% increase in organic enrollment, contributing approximately $52.8 million to revenues.
| Financial Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| Total Revenues | $1,143.2 million | $1,074.9 million | 6% |
| Direct Costs | $858.9 million | $810.4 million | 6% |
| Operating Income | $249.8 million | $228.8 million | 9% |
| Net Income | $202.8 million | $65.5 million | nm |
Segment Performance
Laureate operates through two main segments: Mexico and Peru. For the nine months ended September 30, 2024, revenues from the Mexico segment accounted for 54% of total consolidated revenues, while the Peru segment contributed 46%. The following table summarizes the segment performance:
| Segment | Revenues (2024) | Revenues (2023) | % Change |
|---|---|---|---|
| Mexico | $615.2 million | $559.5 million | 10% |
| Peru | $528.0 million | $515.4 million | 2% |
Enrollment Trends
Organic enrollment has significantly impacted Laureate's revenue growth. For the fiscal quarter ended September 30, 2024, organic enrollment increased by 9%, resulting in additional revenue of approximately $14.8 million. The company continues to adapt its educational offerings to meet the evolving needs of students.
Operational Efficiency
Direct costs and general administrative expenses for the nine months ended September 30, 2024, totaled $893.5 million, an increase of 5.8% from $844.4 million in the previous year. The operational adjustments and higher enrollment levels have contributed to this increase.
| Cost Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| Direct Costs | $858.9 million | $810.4 million | 6% |
| General and Administrative Expenses | $34.6 million | $34.0 million | 2% |
Cash Flow and Liquidity
As of September 30, 2024, Laureate maintained cash and cash equivalents of $134.4 million. The company generated $192.0 million in net cash from operating activities for the nine months ended September 30, 2024, reflecting robust operational performance.
Debt Obligations
The company reported total debt obligations of $66.0 million under its Senior Secured Credit Facility and $38.0 million in other debt as of September 30, 2024. The financial stability and cash flow generation enable Laureate to manage its debt effectively.
How Laureate Education, Inc. (LAUR) Works
Business Model
Laureate Education, Inc. operates primarily in the higher education sector, providing educational services and programs across multiple countries, primarily in Mexico and Peru. The company generates revenue primarily from tuition fees and educational services, with essentially all revenues derived from private pay sources. No significant government-sponsored loan programs exist in its primary markets.
Financial Performance Overview
As of September 30, 2024, Laureate Education reported the following financial results:
| Metric | 2024 (9 Months) | 2023 (9 Months) | % Change |
|---|---|---|---|
| Revenues | $1,143.2 million | $1,074.9 million | 6% |
| Direct Costs | $858.9 million | $810.4 million | (6)% |
| General and Administrative Expenses | $34.6 million | $34.0 million | (2)% |
| Operating Income | $249.8 million | $228.8 million | 9% |
| Net Income | $202.8 million | $65.5 million | nm |
Segment Performance
Laureate operates through two main segments: Mexico and Peru. The following table summarizes the financial performance of each segment for the nine months ended September 30, 2024:
| Segment | Revenues (in millions) | Direct Costs (in millions) | Adjusted EBITDA (in millions) |
|---|---|---|---|
| Mexico | $615.2 | $487.1 | $128.1 |
| Peru | $528.0 | $318.6 | $209.4 |
Enrollment and Revenue Growth
Organic enrollment at Laureate's institutions has shown positive growth, contributing significantly to revenue increases. The company reported a 9% increase in organic enrollment during the 2024 fiscal period, which translated to an additional $52.8 million in revenues compared to the previous year.
Adjusted EBITDA
Adjusted EBITDA for the nine months ended September 30, 2024, was $308.9 million, reflecting an 8% increase from $287.3 million in the same period for 2023. The following table illustrates the reconciliation of net income to adjusted EBITDA:
| Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Income | $202.8 million | $65.5 million |
| Income Tax Expense | $72.5 million | $101.4 million |
| Interest Expense | $14.8 million | $17.3 million |
| Adjusted EBITDA | $308.9 million | $287.3 million |
Liquidity and Capital Resources
As of September 30, 2024, Laureate reported cash and cash equivalents totaling $134.4 million. The company also maintained a revolving credit facility of $300.0 million, of which $66.0 million was utilized. The company anticipates that cash flow from operations will be sufficient to meet current operating requirements for at least the next 12 months.
Debt Obligations
Laureate's debt obligations as of September 30, 2024, included $66.0 million under the Senior Secured Credit Facility and $38.0 million of other debt. The following table summarizes the company's debt profile:
| Debt Type | Amount (in millions) |
|---|---|
| Senior Secured Credit Facility | $66.0 |
| Other Debt | $38.0 |
| Total Debt | $104.0 |
Stock Performance
The basic and diluted earnings per share for the nine months ended September 30, 2024, were $1.31, compared to $0.44 for the same period in 2023, indicating a significant improvement in shareholder value.
Foreign Currency Impact
Laureate's financial results were affected by foreign currency exchange rates, resulting in a foreign currency translation adjustment of $(160.8) million for the nine months ended September 30, 2024.
Comprehensive Income
Comprehensive income attributable to Laureate Education, Inc. for the nine months ended September 30, 2024, was reported as $42.1 million, compared to $184.2 million for 2023.
How Laureate Education, Inc. (LAUR) Makes Money
Revenue Sources
The primary source of revenue for Laureate Education, Inc. is tuition and educational services. For the nine months ended September 30, 2024, the breakdown of revenues was as follows:
| Segment | Tuition and Educational Services (in millions) | Other Revenues (in millions) | Total Revenues (in millions) | Percentage of Total Revenue |
|---|---|---|---|---|
| Mexico | $803.8 | $116.0 | $919.8 | 80% |
| Peru | $530.0 | $51.7 | $581.7 | 51% |
| Corporate | $0.0 | $0.1 | $0.1 | 0% |
| Total | $1,333.8 | $167.8 | $1,501.6 | 100% |
Enrollment Metrics
Enrollment is a critical metric for Laureate's revenue generation. As of September 30, 2024, the organic enrollment statistics were:
- Organic enrollment increase: 9% across key segments
- Mexico enrollment: 50% of total revenues
- Peru enrollment: 46% of total revenues
Financial Performance Overview
For the nine months ended September 30, 2024, Laureate Education reported the following financial highlights:
| Metrics | 2024 (in millions) | 2023 (in millions) | % Change |
|---|---|---|---|
| Revenues | $1,143.2 | $1,074.9 | 6% |
| Direct Costs | $858.9 | $810.4 | (6%) |
| General & Administrative Expenses | $34.6 | $34.0 | (2%) |
| Operating Income | $249.8 | $228.8 | 9% |
| Net Income | $202.8 | $65.5 | nm |
Adjusted EBITDA
Adjusted EBITDA for the nine months ended September 30, 2024, was reported as follows:
| Segment | Adjusted EBITDA (in millions) | % Change from 2023 |
|---|---|---|
| Mexico | $128.1 | 17% |
| Peru | $209.4 | 1% |
| Corporate | ($28.6) | 1% |
| Total Adjusted EBITDA | $308.9 | 8% |
Cost Structure
The cost structure of Laureate Education includes direct costs associated with the delivery of educational services, primarily consisting of:
- Labor costs, including wages and benefits
- Operating costs, such as rent and utilities
- Marketing expenses to attract new enrollments
Foreign Exchange Impact
Laureate's operations in Mexico and Peru expose the company to foreign exchange risks. As of September 30, 2024, the financial results were impacted as follows:
| Metric | 2024 Impact (in millions) | 2023 Impact (in millions) |
|---|---|---|
| Revenue Change due to Foreign Exchange | $1.2 | $(23.8) |
| Direct Costs Change due to Foreign Exchange | $(0.6) | $(21.1) |
Liquidity and Capital Resources
As of September 30, 2024, Laureate Education had cash and cash equivalents amounting to:
- $134.4 million in total cash
- $66.0 million borrowed from a revolving credit facility
These liquidity resources are anticipated to meet operational requirements and support organic growth plans in both Mexico and Peru.
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Article updated on 8 Nov 2024
Resources:
- Laureate Education, Inc. (LAUR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Laureate Education, Inc. (LAUR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Laureate Education, Inc. (LAUR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.