BALTIMORE, March 28, 2017 /PRNewswire/ -- Laureate
Education, Inc. (NASDAQ: LAUR), the global leader in higher
education, today announced financial results for the fourth quarter
and full year of 2016, and provided guidance for the full year
2017.
Fourth Quarter 2016 Highlights (compared to fourth quarter
2015):
- Total enrollments increased 2%, up 3% excluding asset
dispositions
- Revenue increased 2% to $1,176
million; up 8% on an organic constant currency basis
- Operating income increased by 37% to $171 million
- Net income for the quarter was $38
million, as compared to a net loss of $16 million in the fourth quarter of 2015
- Adjusted EBITDA increased 25% to $285
million; up 34% on an organic constant currency basis
- Fourth quarter financial results benefited, in part, from the
expected favorable timing impact related to the academic calendar
(largely shifting timing of revenue and profits from the
2nd and 3rd quarter to the 4th
quarter)
Year Ended December 31, 2016
Highlights (compared to year ended December
31, 2015):
- Revenue was down 1% to $4,244
million; up 6% on an organic constant currency basis
- Operating income increased by 14% to $383 million
- Net income for the year was $366
million, as compared to a net loss of $316 million in fiscal year 2015, partially due
to gains from asset sales
- Adjusted EBITDA increased 9% to $766
million; up 12% on an organic constant currency basis
"Laureate is pleased to report strong operating and financial
results for our fourth quarter and the full year of 2016," said
Doug Becker, Laureate founder,
chairman and chief executive officer. "Our performance reflects our
track record of delivering positive outcomes to our students while
prioritizing accessibility and internationality, key factors for
our continued success."
"In many parts of the world, demand outweighs supply of quality
higher education. With projected growth in the middle class
population worldwide and limited government resources in many
markets, our high-quality higher education institutions are
well-positioned to meet this growing demand. And as a Public
Benefit Corporation, we are committed to operating in a way that
delivers strong outcomes to our students, employees and the
communities we serve."
Fourth Quarter 2016 Results
Total enrollments at December 31,
2016 grew 2% compared to December 31,
2015. Total enrollment growth reflects strong performance in
certain Latin American markets (Peru, Mexico
and Central America), partially
offset by lower enrollment growth in Brazil related to the macroeconomic
environment in Brazil and the
reduction in the government student loan program in that market.
Additionally, a planned strategic shift in AMEA and GPS to longer
length of stay students with higher revenue and contribution
margins affected growth rates during 2016. The sale of our business
units in France (Europe segment) and Switzerland (GPS segment) resulted in the
removal of those students from our enrollment base at December 31, 2016. Excluding the impact from the
dispositions of France and
Switzerland, total enrollment at
December 31, 2016 increased by 3% compared to
December 31, 2015.
Revenue in the fourth quarter of 2016 was $1,176 million, a 2% increase compared to the
fourth quarter of 2015. Operating income increased 37% compared to
the fourth quarter of 2015. Net income was $38 million compared to a net loss of
$16 million in the fourth quarter of
the prior year. Diluted earnings per share were $0.27 per share for the fourth quarter of
2016.
Adjusted EBITDA was $285 million
in the fourth quarter of 2016, a 25% increase compared to the
fourth quarter of 2015. On an organic (i.e., excluding acquisitions
and asset dispositions) constant currency basis, revenue increased
8% and Adjusted EBITDA increased 34% compared to the fourth quarter
of 2015. The fourth quarter of 2016 benefited, in part, from
favorable timing impacts related to changes in our academic
calendar. Therefore, the full year fiscal 2016 results are more
indicative of run-rate operational growth rates.
Laureate ended the fourth quarter of 2016 with $465 million of cash on hand and $790 million in liquidity, including Laureate's
undrawn revolver. As of December 31,
2016, Laureate had $4.0
billion of gross debt and $3.6
billion net debt. Pro forma for: (i) the receipt of
$457 million of net proceeds from
Laureate's initial public offering (the "IPO''), which closed on
February 6, 2017, (ii) the receipt of the remaining funds
($55 million, net) in January 2017 from the issuance of shares of our
Series A Preferred Stock, and (iii) the conversion of $250 million aggregate principal amount of our
9.250% Senior Notes due 2019 which are contractually obligated to
be exchanged for shares of our Class A common stock (the "Exchange
Notes'') within 366 days of the closing of our IPO, based on a
conversion price of $14.00 per share
of Class A common stock (the price per share to the public in our
IPO); net debt was $2.8 billion and
net leverage (net debt / Adjusted EBITDA pro-forma for asset
divestitures) was 3.8x.
Year-to-Date 2016 Performance
For our fiscal year 2016, revenue was $4,244 million, a 1% decrease compared to fiscal
year 2015. Operating income increased 14% compared to our fiscal
year 2015. Net income for our fiscal year 2016 was $366 million compared to a net loss of
$316 million in the prior year,
affected by a $407 million gain on
sale of subsidiaries. Diluted earnings per share were $2.76 per share for the fiscal year 2016.
Adjusted EBITDA was $766 million
for the fiscal year 2016, a 9% increase compared to the fiscal year
2015. On an organic (i.e. excluding acquisitions and asset
dispositions) constant currency basis, revenue increased 6% and
Adjusted EBITDA increased 12%.
Outlook for Fiscal 2017
Laureate is providing the following financial guidance for
full-year 2017. The guidance for 2017 reflects the impact from the
sale of our French and Swiss assets in 2016, which will unfavorably
impact both year-over-year Revenue and Adjusted EBITDA by
approximately (3%). Additionally, currency translation from foreign
exchange rates, based on current rates, is expected to cause a (1%)
reduction year-over-year in 2017 for Adjusted EBITDA, with no
material impact on Revenue expected.
Based on the current foreign exchange spot rates1,
Laureate expects its organic (i.e., excluding acquisitions and
asset dispositions) performance to be as follows:
- Total enrollments of 1,064,000 to 1,080,000, representing
2.0-3.5% growth as compared to December 31,
2016
- Revenues of $4,287 million to $4,348
million, representing 4.5-6.0% organic (pro forma for asset
disposition in 2016) constant currency growth
- Adjusted EBITDA of $789 million to $804
million, representing 8.0-10.0% organic (pro forma for asset
disposition in 2016) constant currency growth
- Capex spending at 7% to 8% of revenues to support growth
initiatives and ongoing maintenance
- Total Class A shares outstanding to increase by approximately
55.7 million upon conversion of the Exchange Notes and $400 million of shares of Series A Preferred
Stock (assuming payment-in-kind dividends), in each case within 366
days of the closing of our IPO, based on a conversion price of
$14.00 per share of Class A common
stock, the price per share to the public in our IPO
- Reported earnings per share in 2017 to be affected by a
$290-$300 million charge to earnings
per share related to accounting for the non-cash beneficial
redemption and conversion features due to the terms of the shares
of Series A Preferred Stock
1 Based on actual FX rates for January-February 2017, and current spot FX rates (local
currency per US dollar) of MXN 19.03, BRL
3.08, CLP 661.00, PEN 3.25,
EUR 0.93 for March - December 2017. FX impact may change based on
fluctuations in currency rates in future periods.
An outlook for 2017 net income and a reconciliation of the
forward-looking 2017 Adjusted EBITDA outlook to net income are not
being provided as Laureate does not currently have sufficient data
to accurately estimate the variables and individual adjustments for
such outlook and reconciliation.
Please see the "Forward-Looking Statements" section in this
release for a discussion of certain risks related to this
outlook
Supplemental Information
Laureate has provided supplemental financial information in a
Current Report on Form 8-K filed with the U.S. Securities and
Exchange Commission (the ''SEC'') on March 28, 2017.
Conference Call
Laureate will host an earnings conference call today at
5:00 pm ET. Interested parties are
invited to listen to the earnings call by dialing 1-855-307-2849
(for U.S.- based callers) or 1-703-639-1262 (for international
callers), and request to join the Laureate conference call. Replays
of the entire call will be available through April 4, 2017 at 1-855-859-2056 (for U.S.- based
callers) and at 1-404-537-3406 (for international callers),
conference ID 77599064. The webcast of the conference call,
including replays, and a copy of this press release and the related
slides will be made available through the Investor Relations
section of Laureate's web site at www.laureate.net.
Forward-Looking Statements
This press release includes statements that express Laureate's
opinions, expectations, beliefs, plans, objectives, assumptions or
projections regarding future events or future results and therefore
are, or may be deemed to be, ''forward-looking statements'' within
the meaning of the federal securities laws, which involve risks and
uncertainties. Laureate's actual results may vary significantly
from the results anticipated in these forward-looking statements.
You can identify forward-looking statements because they contain
words such as ''believes,'' ''expects,'' ''may,'' ''will,''
''should,'' ''seeks,'' ''approximately,'' ''intends,'' ''plans,''
''estimates'' or ''anticipates'' or similar expressions that
concern our strategy, plans or intentions. All statements we make
relating to guidance, estimated and projected Adjusted EBITDA and
earnings, costs, expenditures (including capital expenditures),
cash flows, growth rates and financial results are forward-looking
statements. In addition, we, through our senior management, from
time to time make forward-looking public statements concerning our
expected future operations and performance and other developments.
All of these forward-looking statements are subject to risks and
uncertainties that may change at any time, and, therefore, our
actual results may differ materially from those we expected. We
derive most of our forward-looking statements from our operating
budgets and forecasts, which are based upon many detailed
assumptions. While we believe that our assumptions are reasonable,
we caution that it is very difficult to predict the impact of known
factors, and, of course, it is impossible for us to anticipate all
factors that could affect our actual results. Important factors
that could cause actual results to differ materially from our
expectations are disclosed in the ''Risk Factors" section of our
Rule 424(b) prospectus filed with the SEC on February 2, 2017, our Annual Report on Form 10-K
to be filed with the SEC and other filings made with the SEC. These
forward-looking statements speak only as of the time of this
release and we do not undertake to publicly update or revise them,
whether as a result of new information, future events or otherwise,
except as required by law.
Presentation of Non-GAAP Measures
In addition to the results provided in accordance with U.S.
generally accepted accounting principles ("GAAP") throughout this
press release, Laureate has provided a non-GAAP measurement of
Adjusted EBITDA. We have included Adjusted EBITDA because it is a
key measure used by our management and board of directors to
understand and evaluate our core operating performance and trends,
to prepare and approve our annual budget and to develop short- and
long-term operational plans. In particular, the exclusion of
certain expenses in calculating Adjusted EBITDA can provide a
useful measure for period-to-period comparisons of our core
business. Additionally, Adjusted EBITDA is a key input into the
formula used by the compensation committee of our board of
directors and our Chief Executive Officer in connection with the
payment of incentive compensation to our executive officers and
other members of our management team. Accordingly, we believe that
Adjusted EBITDA provides useful information to investors and others
in understanding and evaluating our operating results in the same
manner as our management and board of directors. Adjusted EBITDA is
reconciled from the respective measures under GAAP in the attached
table "Non-GAAP Reconciliations."
About Laureate Education, Inc.
Laureate Education, Inc. is the largest global network of
degree-granting higher education institutions, with more than one
million students enrolled across 70 institutions in 25 countries at
campuses and online. Laureate offers high-quality, undergraduate,
graduate and specialized degree programs in a wide range of
academic disciplines that provide attractive employment prospects.
Laureate believes that when our students succeed, countries prosper
and societies benefit. This belief is expressed through the
company's philosophy of being 'Here for Good' and is represented by
its status as a certified B Corporation® and conversion in 2015 to
a U.S. Public Benefit Corporation, a new class of corporation
committed to creating a positive impact on society.
Key Metrics and
Financial Tables
(Dollars in
millions, except per share amounts, and may not sum due to
rounding)
|
|
New and Total
Enrollments by segment
|
|
New
Enrollments
|
|
Total
Enrollments
|
|
YTD 4Q
2016
|
|
YTD 4Q
2015
|
|
Change
|
|
As of
12/31/2016
|
|
As of
12/31/2015
|
|
Change
|
LatAm
|
401,300
|
|
|
393,200
|
|
|
2%
|
|
823,600
|
|
|
793,600
|
|
|
4%
|
Europe
(1)
|
24,900
|
|
|
25,400
|
|
|
(2)%
|
|
61,700
|
|
|
62,800
|
|
|
(2)%
|
AMEA
|
39,800
|
|
|
42,700
|
|
|
(7)%
|
|
85,700
|
|
|
83,800
|
|
|
2%
|
GPS
(1)
|
41,700
|
|
|
43,200
|
|
|
(3)%
|
|
72,200
|
|
|
80,900
|
|
|
(11)%
|
Laureate
|
507,700
|
|
|
504,500
|
|
|
1%
|
|
1,043,200
|
|
|
1,021,100
|
|
|
2%
|
(1)
Enrollments affected by the sale of two business units in France
(Europe segment) and Switzerland (GPS segment) during 2016.
Excluding the impact from the dispositions of those assets, Total
Enrollment for Laureate at December 31, 2016 increased by 3%
compared to December 31, 2015.
|
Consolidated
Statements of Operations
|
|
|
For the three
months ended
December 31,
|
|
For the year
ended
December
31,
|
IN
MILLIONS
|
2016(2)
|
|
2015
|
|
Change
|
|
2016(2)
|
|
2015
|
|
Change
|
Revenues
|
$
|
1,175.9
|
|
|
$
|
1,150.5
|
|
|
$
|
25.4
|
|
|
$
|
4,244.2
|
|
|
$
|
4,291.7
|
|
|
$
|
(47.5)
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Direct
costs
|
917.5
|
|
|
965.0
|
|
|
(47.5)
|
|
|
3,615.3
|
|
|
3,760.0
|
|
|
(144.7)
|
|
General and
administrative expenses
|
63.9
|
|
|
60.6
|
|
|
3.3
|
|
|
222.5
|
|
|
194.7
|
|
|
27.8
|
|
Loss on impairment of
assets
|
23.5
|
|
|
—
|
|
|
23.5
|
|
|
23.5
|
|
|
—
|
|
|
23.5
|
|
Operating
income
|
171.0
|
|
|
124.9
|
|
|
46.0
|
|
|
382.9
|
|
|
337.0
|
|
|
45.9
|
|
Interest
income
|
5.4
|
|
|
3.4
|
|
|
2.0
|
|
|
18.7
|
|
|
13.3
|
|
|
5.3
|
|
Interest
expense
|
(107.6)
|
|
|
(97.9)
|
|
|
(9.7)
|
|
|
(421.9)
|
|
|
(398.0)
|
|
|
(23.9)
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
—
|
|
|
(17.4)
|
|
|
(1.3)
|
|
|
(16.1)
|
|
Gain (loss) on
derivatives
|
2.2
|
|
|
—
|
|
|
2.1
|
|
|
(6.1)
|
|
|
(2.6)
|
|
|
(3.5)
|
|
Other income
(expense), net
|
1.9
|
|
|
(1.1)
|
|
|
2.9
|
|
|
0.9
|
|
|
0.2
|
|
|
0.7
|
|
Foreign currency
exchange (loss) gain, net
|
(12.8)
|
|
|
(9.8)
|
|
|
(3.1)
|
|
|
67.5
|
|
|
(149.2)
|
|
|
216.6
|
|
Gain on sales of
subsidiaries, net
|
8.1
|
|
|
—
|
|
|
8.1
|
|
|
406.6
|
|
|
—
|
|
|
406.6
|
|
Income (loss) from
continuing operations before
income taxes and equity in net income of
affiliates
|
68.1
|
|
|
19.6
|
|
|
48.5
|
|
|
431.1
|
|
|
(200.6)
|
|
|
631.7
|
|
Income tax
expense
|
(29.8)
|
|
|
(36.1)
|
|
|
6.4
|
|
|
(65.0)
|
|
|
(117.7)
|
|
|
52.7
|
|
Equity in net income
of affiliates, net of tax
|
0.1
|
|
|
0.4
|
|
|
(0.3)
|
|
|
0.1
|
|
|
2.5
|
|
|
(2.4)
|
|
Net income
(loss)
|
38.5
|
|
|
(16.1)
|
|
|
54.6
|
|
|
366.2
|
|
|
(315.8)
|
|
|
682.0
|
|
Net loss (income)
attributable to noncontrolling
interests
|
2.8
|
|
|
(0.5)
|
|
|
3.4
|
|
|
5.7
|
|
|
(0.4)
|
|
|
6.1
|
|
Net income (loss)
attributable to Laureate
Education, Inc.
|
$
|
41.3
|
|
|
$
|
(16.7)
|
|
|
$
|
58.0
|
|
|
$
|
371.8
|
|
|
$
|
(316.2)
|
|
|
$
|
688.1
|
|
|
Basic and diluted
earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
$
|
0.27
|
|
|
$
|
(0.16)
|
|
|
$
|
0.43
|
|
|
$
|
2.78
|
|
|
$
|
(2.44)
|
|
|
$
|
5.22
|
|
Diluted earnings
(loss) per share
|
$
|
0.27
|
|
|
$
|
(0.16)
|
|
|
$
|
0.43
|
|
|
$
|
2.76
|
|
|
$
|
(2.44)
|
|
|
$
|
5.20
|
|
(2)
Financial results for 2016 as compared to 2015 were affected by the
sale of two business units in France (Europe segment) and
Switzerland (GPS segment) during 2016.
|
Revenue and Adjusted
EBITDA by segment
|
|
IN
MILLIONS
|
|
|
|
|
|
|
%
Change
|
|
$ Variance
Components
|
For the three
months
ended December 31,
|
2016
|
|
2015
|
|
Reported
|
|
Organic
Constant
Currency(3)
|
|
Total
|
|
Organic
Constant
Currency
|
|
Acq/Div.
|
|
FX
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LATAM
|
$
|
703.7
|
|
|
$
|
640.4
|
|
|
10%
|
|
9%
|
|
$
|
63.3
|
|
|
$
|
57.3
|
|
|
$
|
—
|
|
|
$
|
6.0
|
|
Europe
|
148.6
|
|
|
165.2
|
|
|
(10)%
|
|
10%
|
|
(16.6)
|
|
|
16.2
|
|
|
(27.4)
|
|
|
(5.4)
|
|
AMEA
|
121.5
|
|
|
109.2
|
|
|
11%
|
|
11%
|
|
12.3
|
|
|
12.1
|
|
|
—
|
|
|
0.2
|
|
GPS
|
202.6
|
|
|
242.0
|
|
|
(16)%
|
|
2%
|
|
(39.4)
|
|
|
5.3
|
|
|
(44.5)
|
|
|
(0.2)
|
|
Corporate &
Eliminations
|
(0.5)
|
|
|
(6.2)
|
|
|
92%
|
|
92%
|
|
5.7
|
|
|
5.7
|
|
|
—
|
|
|
—
|
|
Total
Revenues
|
1,175.9
|
|
|
1,150.5
|
|
|
2%
|
|
8%
|
|
25.4
|
|
|
96.7
|
|
|
(71.9)
|
|
|
0.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LATAM
|
171.3
|
|
|
140.5
|
|
|
22%
|
|
23%
|
|
30.8
|
|
|
32.5
|
|
|
—
|
|
|
(1.7)
|
|
Europe
|
57.9
|
|
|
54.8
|
|
|
6%
|
|
29%
|
|
3.1
|
|
|
15.9
|
|
|
(9.9)
|
|
|
(2.9)
|
|
AMEA
|
23.5
|
|
|
12.0
|
|
|
96%
|
|
97%
|
|
11.5
|
|
|
11.5
|
|
|
—
|
|
|
—
|
|
GPS
|
68.3
|
|
|
51.7
|
|
|
32%
|
|
43%
|
|
16.6
|
|
|
22.3
|
|
|
(5.5)
|
|
|
(0.2)
|
|
Corporate &
Eliminations
|
(36.1)
|
|
|
(31.5)
|
|
|
(15)%
|
|
(15)%
|
|
(4.6)
|
|
|
(4.6)
|
|
|
—
|
|
|
—
|
|
Total Adjusted
EBITDA
|
$
|
284.8
|
|
|
$
|
227.5
|
|
|
25%
|
|
34%
|
|
$
|
57.3
|
|
|
$
|
77.5
|
|
|
$
|
(15.4)
|
|
|
$
|
(4.8)
|
|
(3)
Organic Constant Currency results exclude the period-over-period
impact from currency fluctuations, acquisitions and
divestitures.
|
|
|
|
|
IN
MILLIONS
|
|
|
|
|
|
|
%
Change
|
|
$ Variance
Components
|
For the year
ended
December 31,
|
2016
|
|
2015
|
|
Reported
|
|
Organic
Constant
Currency(3)
|
|
Total
|
|
Organic
Constant
Currency
|
|
Acq/Div.
|
|
FX
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LATAM
|
$
|
2,442.0
|
|
|
$
|
2,415.6
|
|
|
1%
|
|
7%
|
|
$
|
26.4
|
|
|
$
|
176.9
|
|
|
$
|
—
|
|
|
$
|
(150.5)
|
|
Europe
|
480.4
|
|
|
486.2
|
|
|
(1)%
|
|
9%
|
|
(5.8)
|
|
|
42.1
|
|
|
(35.3)
|
|
|
(12.6)
|
|
AMEA
|
431.3
|
|
|
422.1
|
|
|
2%
|
|
6%
|
|
9.2
|
|
|
23.7
|
|
|
—
|
|
|
(14.5)
|
|
GPS
|
900.5
|
|
|
979.9
|
|
|
(8)%
|
|
1%
|
|
(79.4)
|
|
|
13.9
|
|
|
(90.5)
|
|
|
(2.8)
|
|
Corporate &
Eliminations
|
(10.0)
|
|
|
(12.3)
|
|
|
19%
|
|
19%
|
|
2.3
|
|
|
2.3
|
|
|
—
|
|
|
|
Total
Revenues
|
4,244.2
|
|
|
4,291.7
|
|
|
(1)%
|
|
6%
|
|
(47.5)
|
|
|
258.7
|
|
|
(125.8)
|
|
|
(180.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LATAM
|
500.7
|
|
|
463.7
|
|
|
8%
|
|
9%
|
|
37.0
|
|
|
41.6
|
|
|
—
|
|
|
(4.6)
|
|
Europe
|
83.6
|
|
|
78.4
|
|
|
7%
|
|
21%
|
|
5.2
|
|
|
16.6
|
|
|
(7.1)
|
|
|
(4.3)
|
|
AMEA
|
59.9
|
|
|
49.9
|
|
|
20%
|
|
23%
|
|
10.0
|
|
|
11.5
|
|
|
—
|
|
|
(1.5)
|
|
GPS
|
257.8
|
|
|
226.8
|
|
|
14%
|
|
16%
|
|
31.0
|
|
|
36.9
|
|
|
(5.5)
|
|
|
(0.4)
|
|
Corporate &
Eliminations
|
(136.4)
|
|
|
(115.4)
|
|
|
(18)%
|
|
(18)%
|
|
(21.0)
|
|
|
(21.0)
|
|
|
—
|
|
|
—
|
|
Total Adjusted
EBITDA
|
$
|
765.6
|
|
|
$
|
703.4
|
|
|
9%
|
|
12%
|
|
$
|
62.2
|
|
|
$
|
85.6
|
|
|
$
|
(12.6)
|
|
|
$
|
(10.8)
|
|
(3)
Organic Constant Currency results exclude the period-over-period
impact from currency fluctuations, acquisitions and
divestitures.
|
Consolidated Balance
Sheets
|
|
IN
MILLIONS
|
|
|
|
|
|
December
31,
|
2016
|
|
2015
|
|
Change
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
465.0
|
|
|
$
|
458.7
|
|
|
$
|
6.3
|
|
Receivables (current),
net
|
334.8
|
|
|
326.2
|
|
|
8.7
|
|
Other current
assets
|
426.0
|
|
|
350.8
|
|
|
75.2
|
|
Property and
equipment, net
|
2,151.6
|
|
|
2,290.9
|
|
|
(139.3)
|
|
Goodwill and other
intangible assets
|
3,288.8
|
|
|
3,529.2
|
|
|
(240.4)
|
|
Other long-term
assets
|
436.8
|
|
|
483.3
|
|
|
(46.5)
|
|
Total
assets
|
$
|
7,103.0
|
|
|
$
|
7,439.1
|
|
|
$
|
(336.2)
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
695.2
|
|
|
$
|
721.0
|
|
|
$
|
(25.9)
|
|
Deferred revenue and
student deposits
|
362.9
|
|
|
482.7
|
|
|
(119.8)
|
|
Total long-term debt,
including current portion
|
3,808.4
|
|
|
4,511.3
|
|
|
(702.9)
|
|
Total due to
shareholders of acquired companies, including current
portion
|
210.9
|
|
|
186.7
|
|
|
24.2
|
|
Other
liabilities
|
1,004.3
|
|
|
1,130.3
|
|
|
(126.0)
|
|
Total
liabilities
|
6,081.7
|
|
|
7,032.0
|
|
|
(950.4)
|
|
Convertible redeemable
preferred stock
|
333.0
|
|
|
—
|
|
|
333.0
|
|
Redeemable
noncontrolling interests and equity
|
23.9
|
|
|
51.7
|
|
|
(27.9)
|
|
Total
stockholders' equity
|
664.4
|
|
|
355.4
|
|
|
309.0
|
|
Total liabilities
and stockholders' equity
|
$
|
7,103.0
|
|
|
$
|
7,439.1
|
|
|
$
|
(336.2)
|
|
Consolidated
Statements of Cash Flows
|
|
|
For the year ended
December 31,
|
IN
MILLIONS
|
2016
|
|
2015
|
|
Change
|
Cash flows from
operating activities
|
|
|
|
|
|
Net income
(loss)
|
$
|
366.2
|
|
|
$
|
(315.8)
|
|
|
$
|
682.0
|
|
Depreciation and
amortization
|
264.9
|
|
|
282.9
|
|
|
(18.1)
|
|
(Gain) loss on sale of
subsidiaries and disposal of property and equipment
|
(408.7)
|
|
|
(5.1)
|
|
|
(403.5)
|
|
Loss (gain) on
derivative instruments
|
4.7
|
|
|
2.0
|
|
|
2.7
|
|
Loss on debt
extinguishment
|
17.4
|
|
|
0.3
|
|
|
17.0
|
|
Unrealized foreign
currency exchange (gain) loss
|
(67.9)
|
|
|
124.5
|
|
|
(192.4)
|
|
Income tax
receivable/payable, net
|
(36.8)
|
|
|
13.7
|
|
|
(50.4)
|
|
Working capital,
excluding tax accounts
|
(164.8)
|
|
|
(121.1)
|
|
|
(43.7)
|
|
Other non-cash
adjustments
|
209.6
|
|
|
189.2
|
|
|
20.5
|
|
Net cash provided
by operating activities
|
184.6
|
|
|
170.5
|
|
|
14.1
|
|
Cash flows from
investing activities
|
|
|
|
|
|
Purchase of property
and equipment and land use rights
|
(240.3)
|
|
|
(344.1)
|
|
|
103.8
|
|
Expenditures for
deferred costs
|
(16.4)
|
|
|
(22.8)
|
|
|
6.4
|
|
Receipts from sale of
subsidiaries and property and equipment, net of cash
sold
|
554.4
|
|
|
204.1
|
|
|
350.4
|
|
Settlement of
derivatives related to sale of subsidiaries
|
(5.7)
|
|
|
—
|
|
|
(5.7)
|
|
Business acquisitions,
net of cash acquired
|
—
|
|
|
(6.7)
|
|
|
6.7
|
|
Proceeds from
affiliates
|
—
|
|
|
5.0
|
|
|
(5.0)
|
|
Investing other,
net
|
(22.9)
|
|
|
(9.2)
|
|
|
(13.6)
|
|
Net cash provided
by (used in) investing activities
|
269.2
|
|
|
(173.6)
|
|
|
442.9
|
|
Cash flows from
financing activities
|
|
|
|
|
|
(Decrease) increase in
long-term debt, net
|
(712.6)
|
|
|
100.5
|
|
|
(813.0)
|
|
Payments of deferred
purchase price for acquisitions
|
(22.2)
|
|
|
(25.6)
|
|
|
3.3
|
|
Payments to purchase
noncontrolling interests
|
(25.7)
|
|
|
(5.4)
|
|
|
(20.3)
|
|
Proceeds from issuance
of convertible redeemable preferred stock, net of issuance
costs
|
329.1
|
|
|
—
|
|
|
329.1
|
|
Financing other,
net
|
(14.4)
|
|
|
(35.1)
|
|
|
20.7
|
|
Net cash (used in)
provided by financing activities
|
(445.7)
|
|
|
34.4
|
|
|
(480.1)
|
|
Effects of exchange
rate changes on cash
|
(1.8)
|
|
|
(34.2)
|
|
|
32.4
|
|
Net change in cash
and cash equivalents
|
6.3
|
|
|
(2.9)
|
|
|
9.2
|
|
Cash and cash
equivalents at beginning of period
|
458.7
|
|
|
461.6
|
|
|
(2.9)
|
|
Cash and cash
equivalents at end of period
|
$
|
465.0
|
|
|
$
|
458.7
|
|
|
$
|
6.3
|
|
Liquidity
(including Undrawn Revolver)
|
$
|
790.0
|
|
|
$
|
539.4
|
|
|
$
|
250.6
|
|
Non-GAAP
Reconciliations
|
|
|
For the three
months ended
December 31,
|
|
For the year
ended
December
31,
|
IN
MILLIONS
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
Net income
(loss)
|
$
|
38.5
|
|
|
$
|
(16.1)
|
|
|
$
|
54.6
|
|
|
$
|
366.2
|
|
|
$
|
(315.8)
|
|
|
$
|
682.0
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
Equity in net income
of affiliates, net of tax
|
(0.1)
|
|
|
(0.4)
|
|
|
0.3
|
|
|
(0.1)
|
|
|
(2.5)
|
|
|
2.4
|
|
Income tax expense
(benefit)
|
29.8
|
|
|
36.1
|
|
|
(6.4)
|
|
|
65.0
|
|
|
117.7
|
|
|
(52.7)
|
|
Income (loss) from
continuing operations before
income taxes and equity in net income of
affiliates
|
68.1
|
|
|
19.6
|
|
|
48.5
|
|
|
431.1
|
|
|
(200.6)
|
|
|
631.7
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sales of
subsidiaries, net
|
(8.1)
|
|
|
—
|
|
|
(8.1)
|
|
|
(406.6)
|
|
|
—
|
|
|
(406.6)
|
|
Foreign currency
exchange (gain) loss, net
|
12.8
|
|
|
9.8
|
|
|
3.1
|
|
|
(67.5)
|
|
|
149.2
|
|
|
(216.6)
|
|
Other (income)
expense, net
|
(1.9)
|
|
|
1.1
|
|
|
(2.9)
|
|
|
(0.9)
|
|
|
(0.2)
|
|
|
(0.7)
|
|
Loss on
derivatives
|
(2.2)
|
|
|
—
|
|
|
(2.1)
|
|
|
6.1
|
|
|
2.6
|
|
|
3.5
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
—
|
|
|
17.4
|
|
|
1.3
|
|
|
16.1
|
|
Interest
expense
|
107.6
|
|
|
97.9
|
|
|
9.7
|
|
|
421.9
|
|
|
398.0
|
|
|
23.9
|
|
Interest
income
|
(5.4)
|
|
|
(3.4)
|
|
|
(2.0)
|
|
|
(18.7)
|
|
|
(13.3)
|
|
|
(5.3)
|
|
Operating
income
|
171.0
|
|
|
124.9
|
|
|
46.0
|
|
|
382.9
|
|
|
337.0
|
|
|
45.9
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
62.1
|
|
|
73.6
|
|
|
(11.4)
|
|
|
264.9
|
|
|
282.9
|
|
|
(18.1)
|
|
EBITDA
|
233.1
|
|
|
198.5
|
|
|
34.6
|
|
|
647.8
|
|
|
619.9
|
|
|
27.9
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense (a)
|
9.9
|
|
|
11.8
|
|
|
(1.9)
|
|
|
38.8
|
|
|
39.0
|
|
|
(0.2)
|
|
Loss on impairment of
assets (b)
|
23.5
|
|
|
—
|
|
|
23.5
|
|
|
23.5
|
|
|
—
|
|
|
23.5
|
|
EiP implementation
expenses (c)
|
18.4
|
|
|
17.3
|
|
|
1.1
|
|
|
55.6
|
|
|
44.5
|
|
|
11.1
|
|
Adjusted
EBITDA
|
$
|
284.8
|
|
|
$
|
227.5
|
|
|
$
|
57.3
|
|
|
$
|
765.6
|
|
|
$
|
703.4
|
|
|
$
|
62.2
|
|
|
(a)
Represents non-cash, stock-based compensation expense pursuant to
the provisions of ASC Topic 718.
|
(b)
Represents non-cash charges related to impairments of
goodwill.
|
(c)
Excellence in Process (EiP) implementation expenses are related to
our enterprise-wide initiative to optimize and standardize our
processes, creating vertical integration of procurement,
information technology, finance, accounting and human resources,
which began in 2014 and is expected to be substantially completed
by the end of 2017. EiP includes the establishment of regional
shared services organizations around the world, as well as
improvements to our system of internal controls over financial
reporting.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/laureate-education-reports-fourth-quarter-and-full-year-2016-financial-results-300430712.html
SOURCE Laureate Education, Inc.