Laureate Education(US:LAUR)2021-05-08 04:05Financial Data and Key Metrics Changes - Revenue for Q1 2021 was $195 million, with Adjusted EBITDA at $10 million, reflecting a 5% increase in revenue on a comparable basis due to favorable intake in Peru and a shift in the academic calendar [13][14] - Adjusted EBITDA increased by $39 million compared to the prior period, primarily due to strong intake results from Peru and timing of expenses [14][16] Business Line Data and Key Metrics Changes - In Mexico, revenue decreased by 11% year-over-year due to a smaller intake cycle and a shift towards online offerings, which have lower average revenue [15] - In Peru, new enrollments increased by 11% year-over-year, with revenue up 68% on a constant currency basis, driven by increased enrollments and a positive mix of premium and value brands [16] Market Data and Key Metrics Changes - The overall enrollment in Mexico was down 5% year-over-year, while total enrollments in Peru increased by 10% [15][16] - Vaccination rates in Mexico and Peru are lagging behind the U.S., with less than 5% of the population fully vaccinated, impacting the macroeconomic recovery [6] Company Strategy and Development Direction - The company is focused on completing its transformation into a regional operator in Mexico and Peru, with plans to close the sale of operations in Brazil and Walden University [21] - The company is committed to returning capital to shareholders through stock buybacks, with an expansion of the stock repurchase plan to $500 million [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the outlook for the year despite uncertainties from the pandemic and foreign exchange rates, maintaining guidance for 2021 and 2022 [6][18] - The company is cautiously optimistic about the upcoming enrollment cycle in Mexico, with significant visibility expected by the second quarter earnings release [25] Other Important Information - The company completed the divestiture of operations in Honduras and anticipates net proceeds of approximately $1.95 billion from pending transactions [9][17] - As of March 31, the company's net debt position was $286 million, with total shares outstanding at approximately 196 million [17] Q&A Session Summary Question: Confirmation of semester timing impact in Peru - The quantification of the semester timing impact was confirmed as $15 million in revenue and $15 million on EBITDA [24] Question: Expectations for operating cadence in the second half of the year - Management indicated that they are off to a good start with the enrollment cycle in the Southern Hemisphere and will have better clarity on the Northern Hemisphere intake by June-July [25]