Strong Progress on Strategic Review Initiative, Process Completed for Majority of the Portfolio
Announcing New Share Repurchase Authorization
Following progress made on the strategic review initiative during the third quarter, entities related to closed and pending asset divestitures have been classified as Discontinued Operations. Unless indicated otherwise, the results presented below relate to Continuing Operations, which encompass Laureate's operations in
Third Quarter 2020 Highlights (compared to third quarter 2019):
- On a reported basis, revenue decreased 12% to
$243.5 million , due primarily to the weakening of foreign currencies against the US Dollar. On an organic constant currency basis1, revenue decreased by 4%. - Operating loss for the third quarter of 2020 was
$(318.2) million , driven by impairment charges of$323.4 million related to the Laureate tradename, as compared to operating loss of$(18.4) million for the third quarter of 2019. - Net loss (including Discontinued Operations) for the third quarter of 2020 was
$(784.4) million , primarily attributable to the impairment charges noted above of$323.4 million , as well as the loss from asset sales of$343.6 million , as compared to net loss of$(96.8) million for the third quarter of 2019. - Adjusted EBITDA for the third quarter of 2020 was
$50.4 million , as compared to Adjusted EBITDA of$30.5 million for the third quarter of 2019. The increase in Adjusted EBITDA was aided by tight cost controls and the acceleration of productivity initiatives, as well as favorable timing impacts from the shifting of certain classes to the third quarter as a result of the COVID-19 pandemic.
Nine Months Ended
- New enrollments decreased 7%, as a result of the COVID-19 pandemic.
- Total enrollments decreased 10%.
- On a reported basis, revenue decreased 14% to
$739.7 million , due to the weakening of foreign currencies against the US Dollar and impacts from the COVID-19 pandemic. On an organic constant currency basis, revenue decreased 7%. - Operating loss for the nine months ended
September 30, 2020 was$(366.2) million , driven by impairment charges of$350.9 million , as compared to operating loss of$(21.3) million for the nine months endedSeptember 30, 2019 . - Net loss (including Discontinued Operations) for the nine months ended
September 30, 2020 was$(997.7) million , mainly attributable to impairment charges of$990.3 million and loss from asset sales of$363.3 million , partially offset by a discrete tax benefit, as compared to net income (including Discontinued Operations) of$877.1 million for the nine months endedSeptember 30, 2019 , which was largely attributable to gains from asset sales. - Adjusted EBITDA for the nine months ended
September 30, 2020 was$115.1 million , as compared to Adjusted EBITDA of$104.2 million for the nine months endedSeptember 30, 2019 . The increase in Adjusted EBITDA was aided by tight cost controls and the acceleration of productivity initiatives.
1 Organic constant currency results exclude the period-over-period impact from currency fluctuations, acquisitions and divestitures, and other items.
Third Quarter 2020 Results
For the third quarter of 2020, revenue on a reported basis was
Adjusted EBITDA for the third quarter of 2020 was
Nine Months Ended
New enrollments for the nine months ended
For the nine months ended
Adjusted EBITDA for the nine months ended
Balance Sheet and Capital Structure
Laureate has a strong financial position with significant liquidity. Total debt, net of cash, was
The cash and debt balances as of
On
Share Repurchase Program
Laureate’s board of directors has approved a new stock repurchase program to acquire up to
The Company’s proposed repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Repurchases may be effected pursuant to a trading plan adopted in accordance with Rule 10b5-1 of the Exchange Act. The Company’s board will review the share repurchase program periodically and may authorize adjustment of its terms and size or suspend or discontinue the program. The Company intends to finance the repurchases with free cash flow and excess cash and liquidity on-hand.
Reclassifications to Discontinued Operations
During the third quarter, Laureate completed the sale of its operations in
2020 Outlook
Laureate is updating its full-year 2020 guidance due to the reclassification of various operations into Discontinued Operations.
Based on current foreign exchange spot rates2, Laureate expects its full-year 2020 results to be as follows:
Continuing Operations
- Total enrollments estimated to be approximately 325,000 students;
- Revenues estimated to be in the range of
$1,000 to$1,020 million ; and - Adjusted EBITDA estimated to be in the range of
$185 to$195 million .
Consolidated Operations
- Free Cash Flow, defined as operating cash flow less capital expenditures, expected to be in the range of
$150 to$170 million .
Following completion of all pending asset sales, Laureate anticipates being able to further reduce its trailing 12-month Corporate overhead expenses by 70-80%.
The above outlook assumes that all entities currently included within Continuing Operations remain there for the entirety of 2020. If and when additional entities are required to be moved to Discontinued Operations during 2020, outlook will be subject to revision.
Reconciliations of forward-looking non-GAAP measures (2020 Adjusted EBITDA outlook and 2020 Free Cash Flow outlook) to the relevant forward-looking GAAP measures are not being provided, as Laureate does not currently have sufficient data to accurately estimate the variables and individual adjustments for such outlooks and reconciliations. Due to this uncertainty, the Company cannot reconcile projected Adjusted EBITDA and Free Cash Flow to projected net income and operating cash flow, respectively, without unreasonable effort.
Please see the “Forward-Looking Statements” section in this release for a discussion of certain risks related to this outlook.
2 Based on actual FX rates for January-
Conference Call
Laureate will host an earnings conference call today at
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 (i) guidance (including, but not limited to, total enrollments, revenues, Adjusted EBITDA and related margin, costs, capital expenditures, and Free Cash Flow, (ii) our planned divestitures, the expected proceeds generated therefrom and the expected reduction in revenue resulting therefrom, (iii) our exploration of strategic alternatives and potential future plans, strategies or transactions that may be identified, explored or implemented as a result of such review process and any resulting litigation or dispute therewith and (iv) the potential impact of the COVID-19 pandemic on our business or the global economy as a whole 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, including, with respect to our exploration of strategic alternatives, risks and uncertainties as to the terms, timing, structure, benefits and costs of any divestiture or separation transaction and whether one will be consummated at all, and the impact of any divestiture or separation transaction on our remaining businesses. Accordingly, 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 our Annual Report on Form 10-K filed with the
Presentation of Non-GAAP Measures
In addition to the results provided in accordance with
Adjusted EBITDA consists of income (loss) from continuing operations, adjusted for the items included in the accompanying reconciliation. 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.
Free Cash Flow consists of operating cash flow minus capital expenditures. Free Cash Flow provides a useful indicator about Laureate’s ability to fund its operations and repay its debts.
Laureate’s calculations of Adjusted EBITDA and Free Cash Flow are not necessarily comparable to calculations performed by other companies and reported as similarly titled measures. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. Adjusted EBITDA is reconciled from the GAAP measure in the attached table “Non-GAAP Reconciliation.”
We evaluate our results of operations on both an as reported and an organic constant currency basis. The organic constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates, acquisitions and divestitures, and other items. We believe that providing organic constant currency information provides valuable supplemental information regarding our results of operations, consistent with how we evaluate our performance. We calculate organic constant currency amounts using the change from prior-period average foreign exchange rates to current-period average foreign exchange rates, as applied to local-currency operating results for the current period, and then exclude the impact of acquisitions and divestitures and other items described in the accompanying presentation.
About
At
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 3Q 2020 | YTD 3Q 2019 | Change | As of | As of | Change | ||||||||||||||
Total | Organic | Total | Organic | ||||||||||||||||
103,500 | 110,400 | (6)% | (6)% | 192,100 | 206,400 | (7)% | (7)% | ||||||||||||
61,300 | 67,400 | (9)% | (9)% | 143,500 | 165,300 | (13)% | (13)% | ||||||||||||
Laureate (1) | 164,800 | 177,800 | (7)% | (7)% | 335,600 | 371,700 | (10)% | (10)% |
(1) Excludes new and total enrollments for our discontinued operations
Consolidated Statements of Operations
For the three months ended | For the nine months ended | ||||||||||||||||||||||||||||
IN MILLIONS | 2020 | 2019 | Change | 2020 | 2019 | Change | |||||||||||||||||||||||
Revenues | $ | 243.5 | $ | 277.3 | $ | (33.8 | ) | $ | 739.7 | $ | 860.2 | $ | (120.5 | ) | |||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||
Direct costs | 185.8 | 229.7 | (43.9 | ) | 614.1 | 706.8 | (92.7 | ) | |||||||||||||||||||||
General and administrative expenses | 52.6 | 65.9 | (13.3 | ) | 140.8 | 174.5 | (33.7 | ) | |||||||||||||||||||||
Loss on impairment of assets | 323.4 | — | 323.4 | 350.9 | 0.2 | 350.7 | |||||||||||||||||||||||
Operating loss | (318.2 | ) | (18.4 | ) | (299.8 | ) | (366.2 | ) | (21.3 | ) | (344.9 | ) | |||||||||||||||||
Interest income | 0.7 | 0.9 | (0.2 | ) | 1.6 | 2.6 | (1.0 | ) | |||||||||||||||||||||
Interest expense | (24.7 | ) | (28.3 | ) | 3.6 | (75.7 | ) | (101.5 | ) | 25.8 | |||||||||||||||||||
Loss on debt extinguishment | — | (0.2 | ) | 0.2 | — | (22.1 | ) | 22.1 | |||||||||||||||||||||
Gain (loss) on derivatives | — | 0.3 | (0.3 | ) | (0.6 | ) | 9.2 | (9.8 | ) | ||||||||||||||||||||
Other income, net | 1.3 | 1.0 | 0.3 | 0.8 | 9.1 | (8.3 | ) | ||||||||||||||||||||||
Foreign currency exchange (loss) gain, net | (2.9 | ) | 7.7 | (10.6 | ) | 71.1 | 7.6 | 63.5 | |||||||||||||||||||||
Gain (loss) on sales of assets, net | 0.6 | (1.5 | ) | 2.1 | (1.2 | ) | (1.5 | ) | 0.3 | ||||||||||||||||||||
Loss from continuing operations before income taxes and equity in net income of affiliates | (343.2 | ) | (38.6 | ) | (304.6 | ) | (370.2 | ) | (117.9 | ) | (252.3 | ) | |||||||||||||||||
Income tax benefit (expense) | 72.2 | (48.1 | ) | 120.3 | 293.5 | (94.0 | ) | 387.5 | |||||||||||||||||||||
Equity in net income of affiliates, net of tax | — | — | — | 0.2 | 0.2 | — | |||||||||||||||||||||||
Loss from continuing operations | (271.0 | ) | (86.6 | ) | (184.4 | ) | (76.5 | ) | (211.7 | ) | 135.2 | ||||||||||||||||||
(Loss) income from discontinued operations, net of tax | (169.8 | ) | 31.0 | (200.8 | ) | (558.0 | ) | 240.4 | (798.4 | ) | |||||||||||||||||||
(Loss) gain on sales of discontinued operations, net of tax | (343.6 | ) | (41.1 | ) | (302.5 | ) | (363.3 | ) | 848.4 | (1,211.7 | ) | ||||||||||||||||||
Net (loss) income | (784.4 | ) | (96.8 | ) | (687.6 | ) | (997.7 | ) | 877.1 | (1,874.8 | ) | ||||||||||||||||||
Net loss attributable to noncontrolling interests | — | 1.6 | (1.6 | ) | 5.1 | 0.5 | 4.6 | ||||||||||||||||||||||
Net (loss) income attributable to | $ | (784.4 | ) | $ | (95.2 | ) | $ | (689.2 | ) | $ | (992.7 | ) | $ | 877.6 | $ | (1,870.3 | ) | ||||||||||||
Accretion of redeemable noncontrolling interests and equity | $ | — | $ | (0.2 | ) | $ | 0.2 | $ | 0.2 | $ | 0.3 | $ | (0.1 | ) | |||||||||||||||
Net (loss) income available to common stockholders | $ | (784.4 | ) | $ | (95.4 | ) | $ | (689.0 | ) | $ | (992.5 | ) | $ | 877.9 | $ | (1,870.4 | ) |
Basic and diluted earnings (loss) per share: | ||||||||||||||||||||||||||||
Basic and diluted weighted average shares outstanding | 210.0 | 224.2 | (14.2 | ) | 209.9 | 224.5 | (14.6 | ) | ||||||||||||||||||||
Basic and diluted (loss) earnings per share | $ | (3.73 | ) | $ | (0.43 | ) | $ | (3.30 | ) | $ | (4.72 | ) | $ | 3.91 | $ | (8.63 | ) |
Revenue and Adjusted EBITDA by segment (continuing operations)
IN MILLIONS | |||||||||||||||||||||||||||||
% Change | $ Variance Components | ||||||||||||||||||||||||||||
For the three months ended | 2020 | 2019 | Reported | Organic Constant Currency(2) | Total | Organic Constant Currency | Other | Acq/Div. | FX | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
$ | 115.9 | $ | 145.8 | (21)% | (10)% | $ | (29.9 | ) | $ | (14.7 | ) | $ | — | $ | — | $ | (15.2 | ) | |||||||||||
127.3 | 130.8 | (3)% | 3% | (3.5 | ) | 4.2 | — | — | (7.7 | ) | |||||||||||||||||||
Corporate & Eliminations | 0.3 | 0.7 | (57)% | (57)% | (0.4 | ) | (0.4 | ) | — | — | — | ||||||||||||||||||
Total Revenues | $ | 243.5 | $ | 277.3 | (12)% | (4)% | $ | (33.8 | ) | $ | (10.9 | ) | $ | — | $ | — | $ | (22.9 | ) | ||||||||||
Adjusted EBITDA | |||||||||||||||||||||||||||||
$ | 15.5 | $ | 23.1 | (33)% | (27)% | $ | (7.6 | ) | $ | (6.3 | ) | $ | 0.2 | $ | — | $ | (1.5 | ) | |||||||||||
56.5 | 45.2 | 25% | 33% | 11.3 | 14.7 | — | — | (3.4 | ) | ||||||||||||||||||||
Corporate & Eliminations | (21.6 | ) | (37.8 | ) | 43% | 43% | 16.2 | 16.2 | — | — | — | ||||||||||||||||||
Total Adjusted EBITDA | $ | 50.4 | $ | 30.5 | 65% | 81% | $ | 19.9 | $ | 24.6 | $ | 0.2 | $ | — | $ | (4.9 | ) |
% Change | $ Variance Components | |||||||||||||||||||||||||||||
For the nine months ended | 2020 | 2019 | Reported | Organic Constant Currency(2) | Total | Organic Constant Currency | Other | Acq/Div. | FX | |||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||
$ | 385.0 | $ | 464.7 | (17)% | (7)% | $ | (79.7 | ) | $ | (32.4 | ) | $ | — | $ | — | $ | (47.3 | ) | ||||||||||||
351.4 | 391.1 | (10)% | (7)% | (39.7 | ) | (25.5 | ) | — | — | (14.2 | ) | |||||||||||||||||||
Corporate & Eliminations | 3.3 | 4.5 | (27)% | (27)% | (1.2 | ) | (1.2 | ) | — | — | — | |||||||||||||||||||
Total Revenues | $ | 739.7 | $ | 860.2 | (14)% | (7)% | $ | (120.5 | ) | $ | (59.0 | ) | $ | — | $ | — | $ | (61.5 | ) | |||||||||||
Adjusted EBITDA | ||||||||||||||||||||||||||||||
$ | 58.5 | $ | 80.5 | (27)% | (14)% | $ | (22.0 | ) | $ | (10.9 | ) | $ | (0.8 | ) | $ | — | $ | (10.3 | ) | |||||||||||
129.0 | 133.8 | (4)% | 1% | (4.8 | ) | 1.1 | — | — | (5.9 | ) | ||||||||||||||||||||
Corporate & Eliminations | (72.4 | ) | (110.0 | ) | 34% | 34% | 37.6 | 37.6 | — | — | — | |||||||||||||||||||
Total Adjusted EBITDA | $ | 115.1 | $ | 104.2 | 10% | 27% | $ | 10.9 | $ | 27.9 | $ | (0.8 | ) | $ | — | $ | (16.2 | ) |
(2) Organic Constant Currency results exclude the period-over-period impact from currency fluctuations, acquisitions and divestitures, and other items. Other items include the impact of acquisition-related contingent liabilities for taxes other-than-income tax, net of changes in recorded indemnification assets. Organic Constant Currency is calculated using the change from prior-period average foreign exchange rates to current-period average foreign exchange rates, as applied to local-currency operating results for the current period. The “Organic Constant Currency” % changes are calculated by dividing the Organic Constant Currency amounts by the 2019 Revenues and Adjusted EBITDA amounts, excluding the impact of the divestitures.
Consolidated Balance Sheets
IN MILLIONS | Change | |||||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 716.8 | $ | 61.6 | $ | 655.2 | ||||||
Receivables (current), net | 111.9 | 75.1 | 36.8 | |||||||||
Other current assets | 141.4 | 72.9 | 68.5 | |||||||||
Current assets held for sale | 510.4 | 706.5 | (196.1 | ) | ||||||||
Property and equipment, net | 547.1 | 640.6 | (93.5 | ) | ||||||||
Operating lease right-of-use assets, net | 444.7 | 521.8 | (77.1 | ) | ||||||||
739.5 | 1,168.6 | (429.1 | ) | |||||||||
Deferred income taxes | 295.9 | 49.4 | 246.5 | |||||||||
Other long-term assets | 69.2 | 98.9 | (29.7 | ) | ||||||||
Long-term assets held for sale | 1,598.3 | 3,101.0 | (1,502.7 | ) | ||||||||
Total assets | $ | 5,175.1 | $ | 6,496.4 | $ | (1,321.3 | ) | |||||
Liabilities and stockholders' equity | ||||||||||||
Accounts payable and accrued expenses | $ | 202.4 | $ | 267.7 | $ | (65.3 | ) | |||||
Deferred revenue and student deposits | 62.6 | 54.8 | 7.8 | |||||||||
Total operating leases, including current portion | 495.0 | 559.0 | (64.0 | ) | ||||||||
Total long-term debt, including current portion | 1,396.7 | 1,151.4 | 245.3 | |||||||||
Other liabilities | 222.2 | 196.8 | 25.4 | |||||||||
Current and long-term liabilities held for sale | 969.9 | 1,450.1 | (480.2 | ) | ||||||||
Total liabilities | 3,348.9 | 3,680.0 | (331.1 | ) | ||||||||
Redeemable noncontrolling interests and equity | 1.7 | 12.3 | (10.6 | ) | ||||||||
Total stockholders' equity | 1,824.6 | 2,804.2 | (979.6 | ) | ||||||||
Total liabilities and stockholders' equity | $ | 5,175.1 | $ | 6,496.4 | $ | (1,321.3 | ) |
Consolidated Statements of Cash Flows
For the nine months ended | |||||||||||
IN MILLIONS | 2020 | 2019 | Change | ||||||||
Cash flows from operating activities | |||||||||||
Net (loss) income | $ | (997.7 | ) | $ | 877.1 | $ | (1,874.8 | ) | |||
Depreciation and amortization | 116.1 | 146.3 | (30.2 | ) | |||||||
Loss on impairment of assets | 990.3 | 25.5 | 964.8 | ||||||||
Loss (gain) on sales of subsidiaries and disposal of property and equipment, net | 317.2 | (814.2 | ) | 1,131.4 | |||||||
Loss (gain) on derivative instruments | 0.6 | (8.3 | ) | 8.9 | |||||||
Payments for settlement of derivative contracts | (0.6 | ) | (8.2 | ) | 7.6 | ||||||
Loss on debt extinguishment | — | 26.9 | (26.9 | ) | |||||||
Interest paid on deferred purchase price for acquisitions | (4.0 | ) | — | (4.0 | ) | ||||||
Deferred income taxes | (264.4 | ) | (3.1 | ) | (261.3 | ) | |||||
Unrealized foreign currency exchange (gain) loss | (15.4 | ) | 8.4 | (23.8 | ) | ||||||
Income tax receivable/payable, net | (56.9 | ) | (39.7 | ) | (17.2 | ) | |||||
Working capital, excluding tax accounts | (59.1 | ) | (86.2 | ) | 27.1 | ||||||
Other non-cash adjustments | 195.5 | 187.8 | 7.7 | ||||||||
Net cash provided by operating activities | 221.8 | 312.3 | (90.5 | ) | |||||||
Cash flows from investing activities | |||||||||||
Purchase of property and equipment | (62.3 | ) | (102.1 | ) | 39.8 | ||||||
Expenditures for deferred costs | (12.0 | ) | (12.1 | ) | 0.1 | ||||||
Receipts from sales of discontinued operations, net of cash sold, and property and equipment | 40.1 | 1,141.7 | (1,101.6 | ) | |||||||
Settlement of derivatives related to sale of discontinued operations and net investment hedge | — | 12.9 | (12.9 | ) | |||||||
Proceeds from sale of investment | — | 11.5 | (11.5 | ) | |||||||
Investing other, net | — | (1.1 | ) | 1.1 | |||||||
Net cash (used in) provided by investing activities | (34.2 | ) | 1,050.7 | (1,084.9 | ) | ||||||
Cash flows from financing activities | |||||||||||
Increase (decrease) in long-term debt, net | 268.1 | (1,465.7 | ) | 1,733.8 | |||||||
Payments of deferred purchase price for acquisitions | (5.7 | ) | (19.8 | ) | 14.1 | ||||||
Payments to purchase noncontrolling interests | — | (5.8 | ) | 5.8 | |||||||
Proceeds from exercise of stock options | 26.7 | 1.7 | 25.0 | ||||||||
Payments to repurchase common stock | (29.2 | ) | (87.9 | ) | 58.7 | ||||||
Payments of debt issuance costs | (0.7 | ) | (6.6 | ) | 5.9 | ||||||
Financing other, net | (1.8 | ) | (3.5 | ) | 1.7 | ||||||
Net cash provided by (used in) financing activities | 257.4 | (1,587.6 | ) | 1,845.0 | |||||||
Effects of exchange rate changes on Cash and cash equivalents and Restricted cash | (13.4 | ) | (3.0 | ) | (10.4 | ) | |||||
Change in cash included in current assets held for sale | 218.3 | 230.2 | (11.9 | ) | |||||||
Net change in Cash and cash equivalents and Restricted cash | 649.8 | 2.6 | 647.2 | ||||||||
Cash and cash equivalents and Restricted cash at beginning of period | 97.8 | 125.6 | (27.8 | ) | |||||||
Cash and cash equivalents and Restricted cash at end of period | $ | 747.7 | $ | 128.3 | $ | 619.4 |
Non-GAAP Reconciliation
The following table reconciles Loss from continuing operations to Adjusted EBITDA:
For the three months ended | For the nine months ended | ||||||||||||||||||||||
IN MILLIONS | 2020 | 2019 | Change | 2020 | 2019 | Change | |||||||||||||||||
Loss from continuing operations | $ | (271.0 | ) | $ | (86.6 | ) | $ | (184.4 | ) | $ | (76.5 | ) | $ | (211.7 | ) | $ | 135.2 | ||||||
Plus: | |||||||||||||||||||||||
Equity in net income of affiliates, net of tax | — | — | — | (0.2 | ) | (0.2 | ) | — | |||||||||||||||
Income tax (benefit) expense | (72.2 | ) | 48.1 | (120.3 | ) | (293.5 | ) | 94.0 | (387.5 | ) | |||||||||||||
Loss from continuing operations before income taxes and equity in net income of affiliates | (343.2 | ) | (38.6 | ) | (304.6 | ) | (370.2 | ) | (117.9 | ) | (252.3 | ) | |||||||||||
Plus: | |||||||||||||||||||||||
(Gain) loss on sales of assets, net | (0.6 | ) | 1.5 | (2.1 | ) | 1.2 | 1.5 | (0.3 | ) | ||||||||||||||
Foreign currency exchange loss (gain), net | 2.9 | (7.7 | ) | 10.6 | (71.1 | ) | (7.6 | ) | (63.5 | ) | |||||||||||||
Other income, net | (1.3 | ) | (1.0 | ) | (0.3 | ) | (0.8 | ) | (9.1 | ) | 8.3 | ||||||||||||
(Gain) loss on derivatives | — | (0.3 | ) | 0.3 | 0.6 | (9.2 | ) | 9.8 | |||||||||||||||
Loss on debt extinguishment | — | 0.2 | (0.2 | ) | — | 22.1 | (22.1 | ) | |||||||||||||||
Interest expense | 24.7 | 28.3 | (3.6 | ) | 75.7 | 101.5 | (25.8 | ) | |||||||||||||||
Interest income | (0.7 | ) | (0.9 | ) | 0.2 | (1.6 | ) | (2.6 | ) | 1.0 | |||||||||||||
Operating loss | (318.2 | ) | (18.4 | ) | (299.8 | ) | (366.2 | ) | (21.3 | ) | (344.9 | ) | |||||||||||
Plus: | |||||||||||||||||||||||
Depreciation and amortization | 18.2 | 20.4 | (2.2 | ) | 55.9 | 61.6 | (5.7 | ) | |||||||||||||||
EBITDA | (300.0 | ) | 2.0 | (302.0 | ) | (310.3 | ) | 40.3 | (350.6 | ) | |||||||||||||
Plus: | |||||||||||||||||||||||
Share-based compensation expense (3) | 2.6 | 1.2 | 1.4 | 7.9 | 7.5 | 0.4 | |||||||||||||||||
Loss on impairment of assets (4) | 323.4 | — | 323.4 | 350.9 | 0.2 | 350.7 | |||||||||||||||||
EiP implementation expenses (5) | 24.4 | 27.3 | (2.9 | ) | 66.5 | 56.1 | 10.4 | ||||||||||||||||
Adjusted EBITDA | $ | 50.4 | $ | 30.5 | $ | 19.9 | $ | 115.1 | $ | 104.2 | $ | 10.9 |
(3) Represents non-cash, share-based compensation expense pursuant to the provisions of ASC Topic 718, "Stock Compensation."
(4) Represents non-cash charges related to impairments of long-lived assets.
(5) Excellence-in-Process (EiP) implementation expenses are 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 (SSOs) around the world, as well as improvements to the Company's system of internal controls over financial reporting. The EiP initiative also includes other back- and mid-office areas, as well as certain student-facing activities, expenses associated with streamlining the organizational structure and certain non-recurring costs incurred in connection with the planned and completed dispositions. Beginning in the third quarter of 2019, EiP also includes expenses associated with an enterprise-wide program aimed at revenue growth.
Investor Relations Contact:
ir@laureate.net
Media Contacts:
Adam Smith | ||
adam.smith@laureate.net | ||
Source: |
Source:
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