Laureate Education(US:LAUR)2023-11-05 18:31Financial 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]