UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2023 OR ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from __________ to __________. Commission File Number: 001-38002 Laureate Education, Inc. (Exact name of registrant as specified in its charter) | Delaware | 52-1492296 | | --- | ...

Exhibit 99.1 LAUREATE EDUCATION REPORTS FINANCIAL RESULTS FOR THE FOURTH QUARTER AND FULL- YEAR 2023 AND PROVIDES 2024 OUTLOOK Company Announces New $100 Million Share Repurchase Authorization MIAMI - February 22, 2024 (GLOBE NEWSWIRE) - Laureate Education, Inc. (NASDAQ: LAUR), which operates five higher education institutions across Mexico and Peru, today announced financial results for the fourth quarter and the year ended December 31, 2023. Fourth Quarter 2023 Highlights (compared to fourth quarter 2022) ...

Financial Performance and Key Metrics - Third quarter revenue was $362 million, and adjusted EBITDA was $78 million, both in line with guidance provided during the second quarter earnings call [1][20] - On an organic constant currency basis, revenue for the third quarter increased 8% year-over-year, while adjusted EBITDA declined slightly year-over-year [20] - For the nine months ended in 2023, revenue growth was 11%, and adjusted EBITDA increased by 10% [20] Business Line Performance - In Mexico, new enrollments grew 4% during the primary intake, building on a 17% increase from the previous year [1][21] - For Peru, new enrollments increased 2% during the smaller secondary intake compared to the prior year [1][22] - Mexico's revenue grew 6% year-over-year, while Peru's revenue growth was up 10% [21][22] Market Data and Key Indicators - Mexico's GDP growth has been revised to 3.2%, driven by increased private consumption and nearshoring trends [7][17] - Peru's GDP is expected to experience a slight contraction in 2023 due to political disruptions and severe weather, but a return to positive growth is anticipated in 2024 [8] - Inflation in Mexico has improved, dropping to approximately 4.5%, while Peru's inflation rate fell to 5% [17][8] Company Strategy and Industry Competition - The company aims to expand margins in Mexico to above 25% in the next couple of years, leveraging its position as the largest private operator of higher education in the country [21] - The nearshoring opportunity is expected to benefit the higher education sector in Mexico, as employers will require re-skilling and up-skilling of their labor force [17] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about the operating environment in Mexico, highlighting strong performance and favorable macroeconomic trends [17] - In Peru, despite challenges, the business model has shown resilience with continued growth in enrollments and revenues [8] - The company reaffirmed its revenue and adjusted EBITDA outlook for the full year 2023 within the previously guided range [18][24] Other Important Information - A special cash dividend of $0.70 per share, totaling approximately $110 million, is to be paid on November 30 [18] - The company ended September with $131 million in cash and $135 million in gross debt, resulting in a net debt position of only $4 million [23] Q&A Session Summary - No questions were recorded during the Q&A session, and the call concluded without further inquiries [26]

Represents non-cash, share-based compensation expense pursuant to the provisions of ASC Topic 718. (4) Represents non-cash charges related to impairments of long-lived assets. (5) Excellence-in-Process (EiP) implementation expenses were related to our enterprise-wide initiative to optimize and standardize Laureate's processes, creating vertical integration of procurement, information technology, finance, accounting and human resources. It included the establishment of regional shared services organizations ...

[PART I. - FINANCIAL INFORMATION](index=3&type=section&id=PART_I_FINANCIAL_INFORMATION) [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item_1_Financial_Statements_Unaudited) The company's unaudited consolidated financial statements detail its operational results, financial position, and cash flows [Consolidated Statements of Operations - Three months ended September 30, 2023 and September 30, 2022](index=3&type=section&id=Consolidated_Statements_of_Operations_3M_Sep_2023) Net income increased to $36.0 million in Q3 2023, driven by a 20% rise in revenues to $361.5 million | Metric | 3 Months Ended Sep 30, 2023 (in thousands) | 3 Months Ended Sep 30, 2022 (in thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenues | $361,533 | $300,999 | 20.1% | | Operating income | $58,709 | $56,317 | 4.2% | | Income from continuing operations | $35,735 | $31,852 | 12.2% | | Net income | $35,981 | $31,036 | 16.0% | | Net income attributable to Laureate Education, Inc. | $36,158 | $31,117 | 16.2% | | Basic and diluted EPS | $0.23 | $0.19 | 21.1% | [Consolidated Statements of Operations - Nine months ended September 30, 2023 and September 30, 2022](index=4&type=section&id=Consolidated_Statements_of_Operations_9M_Sep_2023) For the first nine months of 2023, net income grew significantly to $65.5 million on a 20% revenue increase | Metric | 9 Months Ended Sep 30, 2023 (in thousands) | 9 Months Ended Sep 30, 2022 (in thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenues | $1,074,855 | $895,943 | 20.0% | | Operating income | $228,827 | $191,992 | 19.2% | | Income from continuing operations | $69,337 | $25,851 | 168.2% | | Net income | $65,532 | $29,915 | 119.0% | | Net income attributable to Laureate Education, Inc. | $65,728 | $30,329 | 116.7% | | Basic and diluted EPS | $0.42 | $0.17 | 147.1% | [Consolidated Statements of Comprehensive Income - Three months ended September 30, 2023 and September 30, 2022](index=5&type=section&id=Consolidated_Statements_of_Comprehensive_Income_3M_Sep_2023) The company reported a comprehensive loss of $10.4 million for Q3 2023 due to foreign currency translation adjustments | Metric | 3 Months Ended Sep 30, 2023 (in thousands) | 3 Months Ended Sep 30, 2022 (in thousands) | | :--- | :--- | :--- | | Net income | $35,981 | $31,036 | | Foreign currency translation adjustment, net | $(46,371) | $(42,161) | | Total other comprehensive loss | $(46,371) | $(41,178) | | Comprehensive loss | $(10,390) | $(10,142) | | Comprehensive loss attributable to Laureate Education, Inc. | $(10,215) | $(10,060) | [Consolidated Statements of Comprehensive Income - Nine months ended September 30, 2023 and September 30, 2022](index=6&type=section&id=Consolidated_Statements_of_Comprehensive_Income_9M_Sep_2023) Comprehensive income for the nine-month period reached $183.9 million, boosted by positive currency translation effects | Metric | 9 Months Ended Sep 30, 2023 (in thousands) | 9 Months Ended Sep 30, 2022 (in thousands) | | :--- | :--- | :--- | | Net income | $65,532 | $29,915 | | Foreign currency translation adjustment, net | $118,341 | $25,386 | | Total other comprehensive income | $118,341 | $26,383 | | Comprehensive income | $183,873 | $56,298 | | Comprehensive income attributable to Laureate Education, Inc. | $184,153 | $56,708 | [Consolidated Balance Sheets - September 30, 2023 and December 31, 2022](index=7&type=section&id=Consolidated_Balance_Sheets_Sep_2023) Total assets grew to $2.1 billion while total liabilities decreased, resulting in a significant rise in stockholders' equity | Metric | Sep 30, 2023 (in thousands) | Dec 31, 2022 (in thousands) | Change (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total assets | $2,097,274 | $1,972,237 | $125,037 | 6.3% | | Cash and cash equivalents | $130,862 | $85,167 | $45,695 | 53.7% | | Receivables, net | $95,749 | $80,709 | $15,040 | 18.6% | | Goodwill | $640,358 | $583,493 | $56,865 | 9.7% | | Total liabilities | $1,132,234 | $1,196,482 | $(64,248) | -5.4% | | Total stockholders' equity | $963,642 | $774,357 | $189,285 | 24.4% | [Consolidated Statements of Cash Flows - Nine months ended September 30, 2023 and September 30, 2022](index=9&type=section&id=Consolidated_Statements_of_Cash_Flows_9M_Sep_2023) Cash from operations increased to $187.4 million, while financing cash use decreased due to lower stock repurchases | Metric | 9 Months Ended Sep 30, 2023 (in thousands) | 9 Months Ended Sep 30, 2022 (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $187,419 | $154,681 | $32,738 | | Net cash (used in) provided by investing activities | $(26,237) | $66,288 | $(92,525) | | Net cash used in financing activities | $(120,213) | $(236,505) | $116,292 | | Net change in Cash and cash equivalents and Restricted cash | $44,665 | $(9,088) | $53,753 | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes_to_Consolidated_Financial_Statements) These notes detail accounting policies and key financial events, including asset sales and a special cash dividend - Laureate Education, Inc. is a public benefit corporation providing higher education programs in Mexico and Peru through campus-based and online institutions[28](index=28&type=chunk) - Revenues are primarily from tuition and educational services, recognized net of scholarships and discounts, following a **five-step model**[29](index=29&type=chunk)[30](index=30&type=chunk) [Note 1. Description of Business](index=10&type=section&id=Note_1_Description_of_Business) - Laureate Education, Inc. operates higher education programs and services in Mexico and Peru, offering campus-based and online education[28](index=28&type=chunk) - The company is a public benefit corporation, listed on the Nasdaq Global Select Market under "**LAUR**"[28](index=28&type=chunk) [Note 2. Revenue](index=10&type=section&id=Note_2_Revenue) - Revenues are primarily from tuition and educational services, recognized net of scholarships and other discounts, refunds, and waivers[29](index=29&type=chunk) | Metric | Sep 30, 2023 (in thousands) | Dec 31, 2022 (in thousands) | Change (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Accounts and notes receivable | $159,730 | $133,105 | $26,625 | 20.0% | | Deferred revenue and student deposits | $81,039 | $51,264 | $29,775 | 58.1% | - The increase in receivables and deferred revenue is primarily driven by enrollment cycles and advance payments for academic sessions[33](index=33&type=chunk)[35](index=35&type=chunk) [Note 3. Assets Held for Sale](index=12&type=section&id=Note_3_Assets_Held_for_Sale) - Two K-12 educational program subsidiaries and a parcel of land in Mexico were classified as assets held for sale in Q2 and Q3 2023[36](index=36&type=chunk) - The sale is intended to allow the Mexico segment to focus on its core business and does not qualify as a discontinued operation[36](index=36&type=chunk) | Assets Held for Sale (Sep 30, 2023, in thousands) | Amount | | :--- | :--- | | Cash and cash equivalents | $314 | | Receivables, net | $408 | | Property and equipment, net | $1,683 | | Operating lease right-of-use assets, net | $8,839 | | Other assets | $15 | | **Total assets held for sale** | **$11,259** | | Liabilities Held for Sale (Sep 30, 2023, in thousands) | Amount | | :--- | :--- | | Deferred revenue and student deposits | $906 | | Operating leases, including current portion | $8,956 | | Long-term debt, including current portion | $840 | | Other liabilities | $781 | | **Total liabilities held for sale** | **$11,483** | [Note 4. Business and Geographic Segment Information](index=12&type=section&id=Note_4_Business_and_Geographic_Segment_Information) - Laureate's two reportable segments are Mexico and Peru, providing profession-oriented higher education through campus-based, online, and hybrid programs[37](index=37&type=chunk)[38](index=38&type=chunk) - Segment performance is evaluated using **Adjusted EBITDA**, a non-GAAP measure[42](index=42&type=chunk)[43](index=43&type=chunk) | Segment | Institutions | Enrollment (2023 YTD) | 2023 YTD Revenues (in millions) | % Contribution to 2023 YTD Revenues | | :--- | :--- | :--- | :--- | :--- | | Mexico | 2 | 248,500 | $559.5 | 52% | | Peru | 3 | 210,200 | $515.4 | 48% | | **Total** | **5** | **458,700** | **$1,074.9** | **100%** | [Note 5. Goodwill](index=14&type=section&id=Note_5_Goodwill) | Metric | Mexico (in thousands) | Peru (in thousands) | Total (in thousands) | | :--- | :--- | :--- | :--- | | Balance at Dec 31, 2022 | $512,990 | $70,503 | $583,493 | | Currency translation adjustments | $56,207 | $658 | $56,865 | | Balance at Sep 30, 2023 | $569,197 | $71,161 | $640,358 | [Note 6. Debt](index=15&type=section&id=Note_6_Debt) | Metric | Sep 30, 2023 (in thousands) | Dec 31, 2022 (in thousands) | Change (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Senior Secured Credit Facility | $28,000 | $100,000 | $(72,000) | -72.0% | | Total long-term debt and finance leases | $134,661 | $234,173 | $(99,512) | -42.5% | - The company entered into the Third Amendment of its Senior Secured Credit Facility on September 18, 2023, establishing a new Series 2028 Tranche of revolving credit loans[48](index=48&type=chunk) - As of September 30, 2023, the company was in compliance with all debt covenants, including the Consolidated Senior Secured Debt to Consolidated EBITDA ratio, which did not apply due to satisfied conditions[52](index=52&type=chunk)[157](index=157&type=chunk) [Note 7. Leases](index=16&type=section&id=Note_7_Leases) - Laureate's operations rely significantly on leased facilities, classified as either finance leases (for property/equipment) or operating leases (primarily real estate)[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) - ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments[56](index=56&type=chunk) [Note 8. Commitments and Contingencies](index=16&type=section&id=Note_8_Commitments_and_Contingencies) - Laureate is involved in legal actions in the ordinary course of business, with management believing adequate defenses and accruals are in place[57](index=57&type=chunk) | Contingency Type | Sep 30, 2023 (in thousands) | Dec 31, 2022 (in thousands) | | :--- | :--- | :--- | | Income tax contingencies | $135,805 | $130,323 | | Non-income tax loss contingencies | $15,800 | $11,400 | - Estimated reasonably possible loss for unrecorded non-income tax contingencies could be up to **$17.8 million**[60](index=60&type=chunk) [Note 9. Stockholders' Equity](index=18&type=section&id=Note_9_Stockholders_Equity) | Metric | Sep 30, 2023 (in thousands) | Dec 31, 2022 (in thousands) | Change (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Laureate Education, Inc. stockholders' equity | $965,931 | $776,226 | $189,705 | 24.4% | | Retained earnings | $104,972 | $39,244 | $65,728 | 167.5% | | Accumulated other comprehensive loss | $(323,999) | $(442,424) | $118,425 | 26.8% | - The Board of Directors approved the retirement of all **73,766 outstanding shares** of treasury stock on May 24, 2023[64](index=64&type=chunk) - Share-based compensation expense for restricted stock unit awards was **$1.8 million** for the three months and **$4.9 million** for the nine months ended September 30, 2023[68](index=68&type=chunk) [Note 10. Income Taxes](index=20&type=section&id=Note_10_Income_Taxes) | Metric | 9 Months Ended Sep 30, 2023 (in thousands) | 9 Months Ended Sep 30, 2022 (in thousands) | Change (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Income tax expense | $101,379 | $159,213 | $(57,834) | -36.3% | - The decrease in income tax expense was primarily due to a **$32.5 million discrete tax expense** in 2022 and changes in the jurisdictional mix of earnings[72](index=72&type=chunk) [Note 11. Earnings (Loss) Per Share](index=21&type=section&id=Note_11_Earnings_Loss_Per_Share) | Metric | 3 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Basic and diluted EPS (continuing operations) | $0.23 | $0.19 | $0.44 | $0.15 | | Basic and diluted EPS (total) | $0.23 | $0.19 | $0.42 | $0.17 | - The number of stock options and restricted stock units excluded from diluted EPS calculations due to being antidilutive was negligible for the three months ended September 30, 2023, and minimal for the nine months[76](index=76&type=chunk) [Note 12. Legal and Regulatory Matters](index=22&type=section&id=Note_12_Legal_and_Regulatory_Matters) - Peruvian regulatory agency SUNEDU is reviewing university regulations, with new rules expected[79](index=79&type=chunk) - Cibertec, Laureate's technical-vocational institute in Peru, received a **six-year higher education colleges license** in March 2023, allowing it to offer four-year professional bachelor degrees[80](index=80&type=chunk) [Note 13. Supplemental Cash Flow Information](index=23&type=section&id=Note_13_Supplemental_Cash_Flow_Information) | Metric | Sep 30, 2023 (in thousands) | Sep 30, 2022 (in thousands) | Dec 31, 2022 (in thousands) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $130,862 | $319,039 | $85,167 | | Restricted cash | $7,587 | $17,448 | $8,617 | | Total Cash and cash equivalents and Restricted cash shown in the Consolidated Statements of Cash Flows | $138,449 | $336,487 | $93,784 | - Restricted cash primarily consists of cash equivalents held for a supplemental employment retention agreement for a former executive[152](index=152&type=chunk) [Note 14. Subsequent Events](index=23&type=section&id=Note_14_Subsequent_Events) - A special cash dividend of **$0.70 per share** was approved on October 30, 2023, with an aggregate amount of approximately **$110.0 million**, payable on November 30, 2023[82](index=82&type=chunk) - Exercise prices of stock options will be reduced by **$0.70 per share**, and holders of restricted and performance stock units will receive **$0.70 per unvested unit** upon vesting[83](index=83&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item_2_Management_Discussion_and_Analysis_of_Financial_Condition_and_Results_of_Operations) Management discusses financial performance, highlighting revenue and net income growth driven by enrollment and currency effects [Forward-Looking Statements](index=24&type=section&id=Forward_Looking_Statements) The report contains forward-looking statements subject to risks in Mexico and Peru, including political and economic factors - The report contains forward-looking statements concerning strategy, plans, intentions, and financial results, which are subject to change and may differ materially from actual outcomes[84](index=84&type=chunk)[86](index=86&type=chunk) - Key risks include operating in Mexico and Peru (business, political, legal, regulatory, tax, economic, foreign currency), ability to maintain tuition/enrollment, managing growth, brand value, regulatory changes, economic downturns, competition, and cybersecurity[85](index=85&type=chunk) [Introduction](index=25&type=section&id=Introduction) This MD&A helps readers understand Laureate's operations, financial condition, and cash flows - The MD&A aims to assist readers in understanding Laureate Education, Inc.'s results of operations, financial condition, and cash flows[87](index=87&type=chunk) - Financial statements are presented in USD, rounded to the nearest thousand, with MD&A amounts rounded to the nearest tenth of a million[87](index=87&type=chunk) [Overview](index=25&type=section&id=Overview) Laureate operates five higher education institutions in Mexico and Peru, serving approximately 458,700 students - Laureate operates five degree-granting higher education institutions in Mexico and Peru, with approximately **458,700 students**[88](index=88&type=chunk)[93](index=93&type=chunk) - The company targets 18- to 24-year-olds and competes on price, educational quality, reputation, and location, believing it compares favorably due to its focus on quality and professional-oriented curriculum[90](index=90&type=chunk) - Two K-12 educational program subsidiaries in Mexico are classified as assets held for sale, not representing a strategic shift[89](index=89&type=chunk) [Our Business](index=25&type=section&id=Our_Business) - Laureate operates five degree-granting higher education institutions in Mexico and Peru, with a total enrollment of approximately **458,700 students**[88](index=88&type=chunk)[93](index=93&type=chunk) - The company aims to meet the growing demand for affordable, quality higher education in Mexico and Peru, driven by a growing middle class and the value proposition of higher earnings potential[88](index=88&type=chunk) [Assets Held for Sale](index=25&type=section&id=Assets_Held_for_Sale_MDNA) - Two K-12 educational program subsidiaries in Mexico are classified as assets held for sale as of September 30, 2023[89](index=89&type=chunk) - The sale is not a strategic shift and is not presented as a discontinued operation; it is not expected to materially affect financial results[89](index=89&type=chunk) [Our Segments](index=25&type=section&id=Our_Segments) - Mexico and Peru segments provide profession-oriented higher education, utilizing campus-based, online, and hybrid courses[90](index=90&type=chunk) - Both markets are characterized by a significant imbalance between supply and demand for higher education, with demand fueled by a growing middle class and economic benefits of higher education[90](index=90&type=chunk) | Segment | Institutions | Campuses | Market Share (Private Sector) | Funding Source | | :--- | :--- | :--- | :--- | :--- | | Mexico | 2 | >35 | ~36% | Private pay | | Peru | 3 | 19 | ~73% | Private pay | [Challenges](index=27&type=section&id=Challenges) - Operations in Mexico and Peru are subject to complex business, economic, legal, regulatory, political, tax, and foreign currency risks[94](index=94&type=chunk) - Risks include exchange rate fluctuations, economic/political instability, expropriation, changes in government policies, and conflicting tax laws[94](index=94&type=chunk) - Organic growth strategy involves adding new programs (online/hybrid), expanding target demographics, and increasing capacity at existing and new campuses[94](index=94&type=chunk) [Regulatory Environment and Other Matters](index=27&type=section&id=Regulatory_Environment_and_Other_Matters) - Laureate's institutions are subject to uncertain and varying laws and regulations in local jurisdictions, which are subject to updates and changes[95](index=95&type=chunk) - Changes in these laws or their application could materially adversely affect the company's business, financial condition, results of operations, and cash flows[95](index=95&type=chunk) [Key Business Metric](index=28&type=section&id=Key_Business_Metric) Enrollment is the company's primary non-financial metric and a leading indicator of revenue - **Enrollment** is the most important non-financial metric and lead revenue indicator for Laureate Education, Inc[96](index=96&type=chunk) - Total enrollment is affected by new and continuing students, acquisitions, graduations, attrition, and dispositions. Programs are in place to minimize attrition[96](index=96&type=chunk) [Enrollment](index=28&type=section&id=Enrollment) - Enrollment is defined as the number of students registered in a course on the last day of the enrollment reporting period[96](index=96&type=chunk) - Peruvian institutions have primary intake in Q1 and secondary in Q3; Mexican institutions have primary intake in Q3 and secondary in Q1[97](index=97&type=chunk) - Revenues are recognized when classes are in session, with summer breaks impacting Q1 and Q3 for different regions[97](index=97&type=chunk) [Principal Components of Income Statement](index=28&type=section&id=Principal_Components_of_Income_Statement) The income statement comprises revenues, direct costs, and general and administrative expenses - The principal components of the income statement are **Revenues**, **Direct Costs**, and **General and Administrative Expenses**[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) [Revenues](index=28&type=section&id=Revenues) - The majority of revenue comes from tuition and educational services, influenced by price per credit hour, total credit hours, and program pricing[98](index=98&type=chunk) - Revenues are recognized net of scholarships, discounts, refunds, and waivers[98](index=98&type=chunk) - Main drivers of revenue changes are student enrollment and price, with tuition rates adjusted based on market conditions[98](index=98&type=chunk) [Direct Costs](index=28&type=section&id=Direct_Costs) - Direct costs include labor, operating costs, depreciation, amortization, rent, utilities, bad debt, and marketing expenses[99](index=99&type=chunk) - A significant portion of direct costs are variable and tend to trend with enrollment[99](index=99&type=chunk) [General and Administrative Expenses](index=28&type=section&id=General_and_Administrative_Expenses) - General and administrative expenses primarily consist of costs associated with corporate departments like executive management, finance, legal, and business development[100](index=100&type=chunk) [Factors Affecting Comparability](index=28&type=section&id=Factors_Affecting_Comparability) Financial result comparability is affected by foreign exchange rates, seasonality, and income tax expense variations - Comparability of financial results is affected by **foreign exchange rates**, **seasonality**, and **income tax expense**[101](index=101&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk) [Foreign Exchange](index=28&type=section&id=Foreign_Exchange) - Laureate's reporting currency is USD, but operations in Mexico and Peru use local functional currencies, leading to foreign exchange exposure from translation[101](index=101&type=chunk) - The strengthening of the **Mexican peso** against the USD significantly impacted reported revenues and expenses[109](index=109&type=chunk)[110](index=110&type=chunk)[115](index=115&type=chunk) - "**Organic constant currency**" is used to assess business performance by excluding the effects of foreign currency fluctuations[102](index=102&type=chunk) [Seasonality](index=29&type=section&id=Seasonality) - Laureate experiences seasonal fluctuations in results due to academic calendars, with summer breaks impacting Q1 and Q3 revenues[103](index=103&type=chunk) - Operating expenses do not fully correlate with revenue cycles, as institutions incur expenses during summer breaks[103](index=103&type=chunk) - **Q2 and Q4** are stronger revenue quarters, while **Q1 and Q3** are weaker due to summer breaks, but primary enrollment intakes occur in Q1 and Q3[103](index=103&type=chunk) [Income Tax Expense](index=29&type=section&id=Income_Tax_Expense_MDNA) - Income tax provision is based on federal, state, and foreign income taxes, and discrete items[104](index=104&type=chunk) - The tax rate fluctuates due to the mix of earnings between tax-paying and loss-making entities[104](index=104&type=chunk) - Proposed OECD tax principle changes may increase tax uncertainty and adversely affect the provision for income taxes[105](index=105&type=chunk) [Results of Operations](index=29&type=section&id=Results_of_Operations) This section compares consolidated and segment financial results for Q3 and the first nine months of 2023 and 2022 - The results of operations section includes a summary comparison of consolidated results, non-GAAP financial measures (Adjusted EBITDA), and segment results[107](index=107&type=chunk) [Summary Comparison of Consolidated Results for the Three Months Ended September 30, 2023 and 2022](index=30&type=section&id=Summary_Comparison_of_Consolidated_Results_3M_Sep_2023) | Metric (in millions) | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $361.5 | $301.0 | 20% | | Direct costs | $291.1 | $229.4 | (27)% | | General and administrative expenses | $11.8 | $15.3 | 23% | | Operating income | $58.7 | $56.3 | 4% | | Net income attributable to Laureate Education, Inc. | $36.2 | $31.1 | 16% | - Revenue increase was driven by **foreign currency exchange rates ($37.8 million**, mainly Mexican peso), higher organic enrollment ($16.0 million), and product mix/pricing/timing ($7.4 million)[109](index=109&type=chunk) - Direct costs and G&A expenses increased by **$58.2 million**, primarily due to foreign currency exchange rates ($33.0 million) and higher enrollment-driven operational changes ($27.9 million)[110](index=110&type=chunk) [Summary Comparison of Consolidated Results for the Nine Months Ended September 30, 2023 and 2022](index=31&type=section&id=Summary_Comparison_of_Consolidated_Results_9M_Sep_2023) | Metric (in millions) | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $1,074.9 | $895.9 | 20% | | Direct costs | $810.4 | $655.1 | (24)% | | General and administrative expenses | $34.0 | $48.8 | 30% | | Operating income | $228.8 | $192.0 | 19% | | Net income attributable to Laureate Education, Inc. | $65.7 | $30.3 | 117% | - Revenue increase was driven by **foreign currency exchange rates ($79.3 million**, mainly Mexican peso), higher organic enrollment ($62.8 million), and product mix/pricing/timing ($40.7 million)[115](index=115&type=chunk) - Direct costs and G&A expenses increased by **$140.5 million**, primarily due to operational changes from higher enrollments and return-to-campus expenses ($87.8 million), and foreign currency exchange rates ($64.9 million)[116](index=116&type=chunk) [Non-GAAP Financial Measure (Adjusted EBITDA)](index=32&type=section&id=Non_GAAP_Financial_Measure_Adjusted_EBITDA) | Metric (in millions) | 3 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2022 | % Change | | :--- | :--- | :--- | :--- | | Net income | $36.0 | $31.0 | 16% | | Operating income | $58.7 | $56.3 | 4% | | Adjusted EBITDA | $78.4 | $72.8 | 8% | | Metric (in millions) | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | % Change | | :--- | :--- | :--- | :--- | | Net income | $65.5 | $29.9 | 119% | | Operating income | $228.8 | $192.0 | 19% | | Adjusted EBITDA | $287.3 | $244.1 | 18% | - **Adjusted EBITDA** is a key measure for management and the Board to understand core operating performance, prepare budgets, and develop operational plans, excluding items like share-based compensation and impairment losses[123](index=123&type=chunk) [Segment Results](index=35&type=section&id=Segment_Results) This section breaks down revenues and Adjusted EBITDA for the Mexico, Peru, and Corporate segments - Segment results are presented for Mexico, Peru, and Corporate, with "segment direct costs" excluding depreciation, amortization, impairment, share-based compensation, and EiP expenses[128](index=128&type=chunk) [Mexico](index=36&type=section&id=Mexico) | Metric (in millions) | 3 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $185.4 | $147.8 | 25% | | Adjusted EBITDA | $21.9 | $23.4 | (6)% | | Metric (in millions) | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $559.5 | $435.0 | 29% | | Adjusted EBITDA | $109.1 | $79.8 | 37% | - Mexico's organic enrollment increased by **9%** for the three months and **10%** for the nine months ended September 30, 2023[131](index=131&type=chunk)[132](index=132&type=chunk) [Peru](index=37&type=section&id=Peru) | Metric (in millions) | 3 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $176.2 | $152.5 | 16% | | Adjusted EBITDA | $66.3 | $61.2 | 8% | | Metric (in millions) | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $515.4 | $457.1 | 13% | | Adjusted EBITDA | $207.1 | $201.4 | 3% | - Peru's organic enrollment increased by **5%** for the three months and **6%** for the nine months ended September 30, 2023[144](index=144&type=chunk)[145](index=145&type=chunk) [Corporate](index=38&type=section&id=Corporate) | Metric (in millions) | 3 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $0.0 | $0.7 | (100)% | | Adjusted EBITDA | $(9.9) | $(11.9) | 17% | | Metric (in millions) | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $0.0 | $3.8 | (100)% | | Adjusted EBITDA | $(28.8) | $(37.2) | 23% | - Corporate Adjusted EBITDA improvement was mainly driven by a decrease in contract labor expenses, other professional fees, and IT-related costs[146](index=146&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity_and_Capital_Resources) Laureate anticipates sufficient cash flow and available cash to meet liquidity needs for the next 12 months - Laureate expects cash flow from operations and available cash to cover liquidity needs for at least the next 12 months[147](index=147&type=chunk) - Primary cash source is tuition revenue from private pay sources in Mexico and Peru, with no material government-sponsored loan programs[148](index=148&type=chunk) - The company has a **$300.0 million** revolving credit facility, with **$28.0 million** borrowed as of September 30, 2023[150](index=150&type=chunk) [Liquidity Sources](index=39&type=section&id=Liquidity_Sources) - Primary liquidity source is tuition revenue from private pay students in Mexico and Peru[148](index=148&type=chunk) | Metric | Sep 30, 2023 (in millions) | | :--- | :--- | | Cash and cash equivalents | $130.9 | | Revolving Credit Facility (total capacity) | $300.0 | | Revolving Credit Facility (drawn) | $28.0 | [Liquidity Restrictions](index=39&type=section&id=Liquidity_Restrictions) | Metric | Sep 30, 2023 (in millions) | Dec 31, 2022 (in millions) | | :--- | :--- | :--- | | Restricted cash | $7.6 | $8.6 | - Restricted cash is not immediately available for current operations and is held for a supplemental employment retention agreement[152](index=152&type=chunk) [Indefinite Reinvestment of Historical Foreign Earnings](index=40&type=section&id=Indefinite_Reinvestment_of_Historical_Foreign_Earnings) | Metric | Sep 30, 2023 (in millions) | Dec 31, 2022 (in millions) | | :--- | :--- | :--- | | Cash and cash equivalents held by foreign subsidiaries | $121.3 | $77.3 | | Total cash and cash equivalents | $130.9 | $85.2 | - Undistributed historical earnings of foreign operations are deemed indefinitely reinvested outside the U.S., with no taxes recorded on these amounts[153](index=153&type=chunk) [Liquidity Requirements](index=40&type=section&id=Liquidity_Requirements) - Short-term liquidity requirements include debt service, operating lease obligations, deferred compensation, working capital, operating expenses, capital expenditures, special dividend, and business development[154](index=154&type=chunk) - Long-term liquidity requirements include payments on long-term debt, finance leases, operating lease obligations, deferred compensation, and other third-party obligations[155](index=155&type=chunk) [Debt](index=40&type=section&id=Debt_Liquidity) | Debt Component | Sep 30, 2023 (in millions) | | :--- | :--- | | Senior Secured Credit Facility | $28.0 | | Other debt (lines of credit, notes payable) | $49.1 | | Finance lease obligations and sale-leaseback financings | $57.6 | | **Total debt obligations** | **$134.7** | [Covenants](index=40&type=section&id=Covenants) - The Amended Credit Agreement includes a Consolidated Senior Secured Debt to Consolidated EBITDA financial maintenance covenant for the revolving credit facility[157](index=157&type=chunk) - As of September 30, 2023, Laureate was not subject to the leverage ratio covenant because conditions were satisfied, and the company was in compliance with all other financial maintenance covenants[157](index=157&type=chunk) [Leases](index=40&type=section&id=Leases_Liquidity) | Metric | Sep 30, 2023 (in millions) | Dec 31, 2022 (in millions) | | :--- | :--- | :--- | | Present value of operating lease liabilities | $393.2 | $415.9 | - Laureate conducts a significant portion of its operations from leased facilities, including higher education facilities and office locations[158](index=158&type=chunk) [Capital Expenditures](index=40&type=section&id=Capital_Expenditures) | Metric | 9 Months Ended Sep 30, 2023 (in millions) | 9 Months Ended Sep 30, 2022 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Total capital expenditures | $26.7 | $17.1 | 56% | - The increase in capital expenditures was primarily due to investment in equipment for health science programs in Peru and campus expansion and digital innovation in Mexico[160](index=160&type=chunk) - Capital expenditure program includes discretionary spending for growth (capacity expansion, new programs/campuses, IT) and non-discretionary spending for maintenance[159](index=159&type=chunk) [Special Cash Dividend](index=41&type=section&id=Special_Cash_Dividend) - A special cash dividend of **$0.70 per share** was approved on October 30, 2023, with an aggregate amount of approximately **$110.0 million**, payable on November 30, 2023[161](index=161&type=chunk) [Cash Flows](index=41&type=section&id=Cash_Flows) | Cash Flow Activity (in millions) | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | Change (in millions) | | :--- | :--- | :--- | :--- | | Operating activities | $187.4 | $154.7 | $32.7 | | Investing activities | $(26.2) | $66.3 | $(92.5) | | Financing activities | $(120.2) | $(236.5) | $116.3 | - Operating cash increased due to higher operating income and changes in operating assets/liabilities, partially offset by increased cash paid for taxes and interest[164](index=164&type=chunk) - Investing cash flow decrease was mainly due to lower cash receipts from sales of discontinued operations and property/equipment (**$82.9 million decrease**) and increased capital expenditures (**$9.6 million increase**)[165](index=165&type=chunk) - Financing cash outflow decrease was primarily due to the absence of **$207.2 million** in common stock repurchases made in the prior year[166](index=166&type=chunk) [Critical Accounting Policies and Estimates](index=42&type=section&id=Critical_Accounting_Policies_and_Estimates) No significant changes were made to critical accounting policies during the first nine months of 2023 - Financial statement preparation involves significant management judgments and estimates[168](index=168&type=chunk) - No significant changes to critical accounting policies occurred during the nine months ended September 30, 2023[168](index=168&type=chunk) [Recently Adopted Accounting Standards](index=42&type=section&id=Recently_Adopted_Accounting_Standards) There were no recently adopted accounting standards to report - No recently adopted accounting standards were reported[169](index=169&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item_3_Quantitative_and_Qualitative_Disclosures_About_Market_Risk) There have been no significant changes in Laureate's market risk exposures since December 31, 2022 - No significant changes in market risk exposures have occurred since December 31, 2022[170](index=170&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item_4_Controls_and_Procedures) Management confirms the effectiveness of disclosure controls and reports a non-material upgrade to internal control systems [Evaluation of Disclosure Controls and Procedures](index=42&type=section&id=Evaluation_of_Disclosure_Controls_and_Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2023 - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of September 30, 2023[171](index=171&type=chunk) [Changes in Internal Controls over Financial Reporting](index=42&type=section&id=Changes_in_Internal_Controls_over_Financial_Reporting) The company upgraded its financial consolidation system in Q3 2023, which was not in response to any control deficiency - The company upgraded to a new cloud-based system for planning and financial consolidation in Q3 2023[172](index=172&type=chunk) - This system implementation was not due to any identified deficiency or weakness in internal control over financial reporting[172](index=172&type=chunk) - No other material changes to internal control over financial reporting occurred during the fiscal quarter ended September 30, 2023[173](index=173&type=chunk) [PART II. - OTHER INFORMATION](index=43&type=section&id=PART_II_OTHER_INFORMATION) [Item 1. Legal Proceedings](index=43&type=section&id=Item_1_Legal_Proceedings) No new material legal proceedings have arisen, though a Spanish tax audit was initiated in May 2023 - No new material legal proceedings or developments were reported, except for specific tax matters[174](index=174&type=chunk) - The Spanish Supreme Court ruled in favor of the Spanish Taxing Authority in June 2023 regarding tax deductibility of financial expenses for 2006-2010, with **no material effect** on consolidated financial statements[175](index=175&type=chunk) - A new tax audit for corporate income tax (2018-2020) and non-resident income tax (2019-2020) was initiated by the Spanish Taxing Authority in May 2023[176](index=176&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item_1A_Risk_Factors) There have been no material changes to the risk factors previously disclosed in the 2022 Form 10-K - No material changes to previously disclosed risk factors in the 2022 Form 10-K[177](index=177&type=chunk) [Item 5. Other Information](index=43&type=section&id=Item_5_Other_Information) No directors or officers adopted, terminated, or modified Rule 10b5-1 trading arrangements during Q3 2023 - No directors or officers adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended September 30, 2023[178](index=178&type=chunk) [Item 6. Exhibits](index=44&type=section&id=Item_6_Exhibits) This section lists exhibits filed with the Form 10-Q, including credit agreement amendments and certifications - Exhibits include the Third Amendment to the Third Amended and Restated Credit Agreement, Fourth Amendment to Independent Contractor and Consultant Agreement, Section 302 and 906 Certifications, and XBRL documents[180](index=180&type=chunk) [SIGNATURES](index=45&type=section&id=SIGNATURES) The report was duly signed by the Chief Financial Officer and Global Controller on November 2, 2023 - The report was signed by Richard M. Buskirk (SVP and CFO) and Gerard M. Knauer (VP, Accounting and Global Controller) on November 2, 2023[184](index=184&type=chunk)

exico Note: An outlook for Q3 2023 and implied 2H net income and reconciliation of the forward-looking Q3 2023 and 2H implied Adjusted EBITDA outlook to projected net income is not being provided as the company does not currently have sufficient data to accurately estimate the variables and individual adjustments for such outlook and reconciliation. Due to this uncertainty, the company cannot reconcile Adjusted EBITDA to projected net income without unreasonable effort. 2023 Second Quarter – Net Income Reco ...

Part I - Financial Information [Financial Statements (Unaudited)](index=2&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) For the second quarter of 2023, Laureate Education reported significant growth, with revenues increasing 20% year-over-year to $462.1 million and net income rising to $56.3 million from $43.6 million, while for the six-month period, revenues grew 20% to $713.3 million, and the company swung to a net income of $29.6 million from a net loss of $1.1 million in the prior year, with the balance sheet strengthening as total assets increased to $2.17 billion and stockholders' equity rose to $971.2 million, and operating cash flow for the six months improved to $78.8 million Consolidated Statements of Operations (Q2 2023 vs Q2 2022, in millions) | For the three months ended June 30, | 2023 | 2022 | | :--- | :--- | :--- | | **Revenues** | **$462.1** | **$385.4** | | Operating income | $154.5 | $126.6 | | Income from continuing operations | $60.4 | $39.4 | | **Net income** | **$56.3** | **$43.6** | | Net income attributable to Laureate | $56.2 | $43.4 | | **Diluted earnings per share** | **$0.35** | **$0.25** | Consolidated Statements of Operations (Six Months Ended June 30, in millions) | For the six months ended June 30, | 2023 | 2022 | | :--- | :--- | :--- | | **Revenues** | **$713.3** | **$594.9** | | Operating income | $170.1 | $135.7 | | Income (loss) from continuing operations | $33.6 | $(6.0) | | **Net income (loss)** | **$29.6** | **$(1.1)** | | Net income (loss) attributable to Laureate | $29.6 | $(0.8) | | **Basic and diluted earnings per share** | **$0.18** | **$—** | Consolidated Balance Sheet Highlights (in millions) | As of | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $111.7 | $85.2 | | **Total assets** | **$2,170.9** | **$1,972.2** | | Total liabilities | $1,198.3 | $1,196.5 | | **Total stockholders' equity** | **$971.2** | **$774.4** | - In Q2 2023, two K-12 educational programs in Mexico were classified as held for sale, with total assets of **$11.1 million** and liabilities of **$11.7 million**, a move intended to allow the Mexico segment to focus on its core higher education business[33](index=33&type=chunk) - On May 24, 2023, the Board of Directors approved the retirement of all **73,766** outstanding shares of treasury stock[59](index=59&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the strong performance in the first half of 2023 to higher organic enrollment, favorable product mix and pricing, and positive foreign currency effects, particularly from the Mexican peso, with total enrollment reaching approximately 424,400 students and Adjusted EBITDA increasing by 22% to $175.4 million for Q2 and $208.9 million for the six-month period, anticipating sufficient cash flow for at least the next 12 months [Overview](index=24&type=section&id=Overview) Laureate operates five degree-granting higher education institutions in Mexico and Peru, serving approximately 424,400 students, focusing on markets with significant demand for quality, affordable higher education, while managing risks inherent in international operations - The company operates five institutions in Mexico and Peru with a total enrollment of approximately **424,400** students[81](index=81&type=chunk)[86](index=86&type=chunk) Segment Overview (as of June 30, 2023) | Segment | Institutions | Enrollment | YTD Revenues ($ millions) | % of YTD Revenues | | :--- | :--- | :--- | :--- | :--- | | Mexico | 2 | 205,100 | $374.1 | 52% | | Peru | 3 | 219,300 | $339.2 | 48% | | **Total** | **5** | **424,400** | **$713.3** | **100%** | - Enrollment is the company's most important non-financial metric and a lead indicator for revenue, with primary intake periods in Q1 for Peru and Q3 for Mexico, leading to revenue seasonality with Q2 and Q4 typically being stronger[89](index=89&type=chunk)[90](index=90&type=chunk)[96](index=96&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) For Q2 2023, consolidated revenues increased by 20% to $462.1 million, driven by organic enrollment growth, pricing/mix, and favorable foreign exchange, with operating income growing 22% to $154.5 million, and Adjusted EBITDA for the six months growing 22% to $208.9 million Q2 2023 vs. Q2 2022 Consolidated Results (in millions) | Metric | Q2 2023 | Q2 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $462.1 | $385.4 | 20% | | Operating income | $154.5 | $126.6 | 22% | | Income from continuing operations | $60.4 | $39.4 | 53% | | Net income attributable to Laureate | $56.2 | $43.4 | 29% | Six Months 2023 vs. 2022 Consolidated Results (in millions) | Metric | YTD 2023 | YTD 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $713.3 | $594.9 | 20% | | Operating income | $170.1 | $135.7 | 25% | | Income (loss) from continuing operations | $33.6 | $(6.0) | nm | | Net income (loss) attributable to Laureate | $29.6 | $(0.8) | nm | Adjusted EBITDA Reconciliation (in millions) | Period | Adjusted EBITDA 2023 | Adjusted EBITDA 2022 | % Change | | :--- | :--- | :--- | :--- | | **Three months ended June 30** | **$175.4** | **$144.1** | **22%** | | **Six months ended June 30** | **$208.9** | **$171.3** | **22%** | [Segment Results](index=34&type=section&id=Segment%20Results) The Mexico segment showed exceptional growth, with Q2 Adjusted EBITDA surging 96% to $38.2 million, driven by an 11% increase in organic enrollment and favorable currency translation, while the Peru segment also grew, with Q2 Adjusted EBITDA up 8% to $147.2 million, supported by a 7% rise in organic enrollment, and corporate expenses decreased Mexico Segment Performance (Q2 2023 vs Q2 2022, in millions) | Metric | Q2 2023 | Q2 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $192.1 | $144.7 | 33% | | Adjusted EBITDA | $38.2 | $19.5 | 96% | - Mexico's Q2 revenue growth was driven by an **11%** increase in organic enrollment (**$15.0 million**), pricing/mix (**$10.6 million**), and a significant positive foreign exchange impact (**$21.8 million**)[127](index=127&type=chunk)[130](index=130&type=chunk) Peru Segment Performance (Q2 2023 vs Q2 2022, in millions) | Metric | Q2 2023 | Q2 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $270.0 | $239.2 | 13% | | Adjusted EBITDA | $147.2 | $136.3 | 8% | - Peru's Q2 revenue growth was driven by a **7%** increase in organic enrollment (**$13.2 million**) and pricing/mix (**$14.9 million**)[133](index=133&type=chunk)[136](index=136&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company's primary liquidity source is tuition revenue, with **$111.7 million** in cash and cash equivalents and access to a **$410.0 million** revolving credit facility, and net cash from operating activities for the first six months of 2023 increased significantly to **$78.8 million** from **$45.6 million** in the prior year, primarily due to the absence of stock repurchases - Primary liquidity sources are cash from operations, **$111.7 million** in cash and cash equivalents, and a **$410.0 million** Senior Secured Credit Facility with **$322.0 million** of available capacity as of June 30, 2023[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk) Summary of Cash Flows (Six Months Ended June 30, in millions) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Cash from Operating Activities | $78.8 | $45.6 | | Cash from Investing Activities | $(14.5) | $2.0 | | Cash from Financing Activities | $(45.7) | $(226.2) | - The significant decrease in cash used for financing activities was primarily due to no common stock repurchases in the 2023 period, compared to **$206.3 million** in repurchases during the 2022 period[159](index=159&type=chunk) - Capital expenditures increased to **$14.9 million** for the first six months of 2023, up from **$8.2 million** in the prior-year period, mainly due to return-to-campus activities and investments in health science programs[154](index=154&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there have been no significant changes in its market risk exposures since the end of its 2022 fiscal year - There have been no significant changes in market risk exposures since December 31, 2022[162](index=162&type=chunk) [Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2023, with the company currently upgrading to a new cloud-based system for financial planning and consolidation - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the quarter[163](index=163&type=chunk) - The company is in the process of upgrading to a new cloud-based system for its planning and financial consolidation processes[164](index=164&type=chunk) Part II - Other Information [Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company provided an update on its ongoing tax audits with the Spanish Taxing Authority (STA), with the Spanish Supreme Court ruling in favor of the STA regarding tax years 2006 to 2010, resulting in approximately **$40.8 million** in assessments, and a new audit initiated for January 2018 to May 2020 - In June 2023, the Spanish Supreme Court ruled in favor of the Spanish Taxing Authority (STA) regarding tax assessments for years 2006-2010, for which the company has paid approximately **$40.8 million** and has no further recourse[168](index=168&type=chunk) - In May 2023, the STA initiated a new audit of the company's former Spanish holding company for corporate income tax (Jan 2018 - May 2020) and non-resident income tax (May 2019 - May 2020)[169](index=169&type=chunk) [Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022 - No material changes to risk factors were reported for the period[170](index=170&type=chunk)

Laureate Education, Inc. (NASDAQ:LAUR) Q1 2023 Earnings Conference Call May 4, 2023 8:15 AM ET Company Participants Adam Morse - Senior Vice President, Corporate Finance Eilif Serck-Hanssen - President and Chief Executive Officer Rick Buskirk - Chief Financial Officer Conference Call Participants Jeffrey Silber - BMO Capital Markets Operator Good day and thank you for standing by. Welcome to the Laureate Education Incorporated First Quarter 2023 Earnings Conference Call. At this time, all participants are i ...

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=2&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The company reported increased revenue and a reduced net loss for Q1 2023, though net cash from operations declined Consolidated Statements of Operations Highlights (Q1 2023 vs Q1 2022) | Metric | Q1 2023 (in thousands) | Q1 2022 (in thousands) | | :--- | :--- | :--- | | **Revenues** | $251,255 | $209,563 | | **Operating income** | $15,629 | $9,034 | | **Loss from continuing operations** | $(26,748) | $(45,415) | | **Net loss** | $(26,762) | $(44,680) | | **Net loss attributable to Laureate** | $(26,607) | $(44,211) | | **Basic and diluted loss per share** | $(0.17) | $(0.25) | Consolidated Balance Sheet Highlights (As of March 31, 2023) | Metric | March 31, 2023 (in thousands) | December 31, 2022 (in thousands) | | :--- | :--- | :--- | | **Cash and cash equivalents** | $130,636 | $85,167 | | **Total current assets** | $279,388 | $226,199 | | **Total assets** | $2,095,474 | $1,972,237 | | **Total current liabilities** | $407,776 | $381,387 | | **Total liabilities** | $1,273,144 | $1,196,482 | | **Total stockholders' equity** | $820,932 | $774,357 | Consolidated Statements of Cash Flows Highlights (Q1 2023 vs Q1 2022) | Metric | Q1 2023 (in thousands) | Q1 2022 (in thousands) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $26,469 | $53,877 | | **Net cash (used in) provided by investing activities** | $(5,579) | $7,938 | | **Net cash provided by (used in) financing activities** | $21,144 | $(104,138) | | **Net change in Cash and cash equivalents** | $45,496 | $(31,133) | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue growth was driven by higher enrollment and favorable currency exchange, while liquidity remains sufficient [Overview](index=19&type=section&id=Overview) The company operates five higher education institutions in Mexico and Peru with a seasonal business model - The company operates a portfolio of five degree-granting higher education institutions in Mexico and Peru, with a total enrollment of approximately **437,900 students** as of March 31, 2023[71](index=71&type=chunk)[75](index=75&type=chunk) - The business experiences seasonality, with the second and fourth quarters being stronger revenue periods, while the first and third quarters are weaker but coincide with primary enrollment intakes[84](index=84&type=chunk) Segment Overview (as of March 31, 2023) | Segment | Institutions | Enrollment | YTD Revenues ($ in millions) | % Contribution to YTD Revenues | | :--- | :--- | :--- | :--- | :--- | | **Mexico** | 2 | 213,900 | $182.0 | 72% | | **Peru** | 3 | 224,000 | $69.2 | 28% | | **Total** | 5 | 437,900 | $251.3 | 100% | [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Q1 2023 revenue and operating income increased, driven by strong performance in the Mexico segment - Q1 2023 revenue increased by **$41.7 million** year-over-year, driven by higher organic enrollment, favorable foreign currency exchange rates, and improved pricing[90](index=90&type=chunk) - The Mexico segment's revenue grew **28% to $182.0 million**, and its Adjusted EBITDA increased **32% to $48.9 million**, driven by an 11% increase in organic enrollment[101](index=101&type=chunk)[102](index=102&type=chunk)[104](index=104&type=chunk) - The Peru segment's revenue grew **6% to $69.2 million**, but its Adjusted EBITDA decreased to a loss of **$(6.5) million** due to return-to-campus expenses[101](index=101&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) Adjusted EBITDA Reconciliation (Q1 2023 vs Q1 2022) | (in millions) | 2023 | 2022 | | :--- | :--- | :--- | | **Loss from continuing operations** | $(26.7) | $(45.4) | | **Operating income** | $15.6 | $9.0 | | **EBITDA** | $32.3 | $23.4 | | **Adjusted EBITDA** | $33.5 | $27.2 | [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is supported by cash flow and a credit facility, though operating cash flow decreased due to higher tax payments - Primary liquidity sources are cash flow from operations and a **$410.0 million** Senior Secured Credit Facility, which had an outstanding balance of **$138.0 million** as of March 31, 2023[112](index=112&type=chunk)[115](index=115&type=chunk) - As of March 31, 2023, total cash and cash equivalents were **$130.6 million**, with **$119.2 million** held by foreign subsidiaries[114](index=114&type=chunk)[118](index=118&type=chunk) - Cash provided by operating activities decreased by **$27.4 million** year-over-year, primarily due to a **$35.0 million** increase in cash paid for taxes[127](index=127&type=chunk) - Cash flow from financing activities was a **$21.1 million inflow**, a significant shift from a **$104.1 million outflow** in Q1 2022, which included **$102.2 million** in stock repurchases[129](index=129&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no significant changes in its market risk exposures since year-end 2022 - There have been no significant changes in the company's market risk exposures since its December 31, 2022 fiscal year end[132](index=132&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - The CEO and CFO concluded that as of the end of Q1 2023, the company's disclosure controls and procedures were effective[133](index=133&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[134](index=134&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) No new material legal proceedings or developments have occurred since the last annual report - There have been no new material legal proceedings and no material developments in previously disclosed legal proceedings[136](index=136&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors were reported - No material changes have been made to the risk factors previously disclosed in the 2022 Form 10-K[137](index=137&type=chunk) [Item 6. Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q report

Laureate Education, Inc. (NASDAQ:LAUR) Q4 2022 Earnings Conference Call February 23, 2023 8:30 AM ET Company Participants Adam Morse - SVP, Corporate Finance Eilif Serck-Hanssen - President and CEO Rick Buskirk - CFO Conference Call Participants Jeffrey Silber - BMO Capital Markets Operator Good day, and thank you for standing by, and welcome to the Full Year 2022 Laureate Education, Inc. Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would n ...