EX-99.01 2 a06-16541_1ex99d01.htm EX-99

Exhibit 99.01

Laureate Education, Inc.

Preferential Change in Revenue Recognition Method

Effect on EPS for 2004-2005

 

 

 

2004**

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Income from Continuing Operations -Historical

 

$

2,507

 

$

17,609

 

$

10,613

 

$

32,031

 

$

62,760

 

Income from Continuing Operations - Weekly

 

$

1,340

 

$

19,449

 

$

6,013

 

$

34,862

 

$

61,664

 

 

 

 

 

 

 

 

 

 

 

 

 

Difference

 

$

(1,167

)

$

1,840

 

$

(4,600

)

$

2,831

 

$

(1,096

)

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Shares Outstanding

 

47,484

 

48,131

 

49,124

 

51,310

 

49,016

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per Share - Historical

 

$

0.05

 

$

0.37

 

$

0.22

 

$

0.62

 

$

1.28

 

Earnings per Share - Weekly

 

$

0.03

 

$

0.40

 

$

0.12

 

$

0.68

 

$

1.26

 

 

 

 

 

 

 

 

 

 

 

 

 

Difference

 

$

(0.02

)

$

0.03

 

$

(0.10

)

$

0.06

 

$

(0.02

)

** 2004 amounts are shown Pro Forma results (as previously disclosed in the Company’s quarterly earnings releases).

 

 

 

2005

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Income from Continuing Operations -Historical

 

$

3,984

 

$

22,154

 

$

12,047

 

$

47,561

 

$

85,746

 

Income from Continuing Operations - Weekly

 

$

1,328

 

$

31,310

 

$

9,067

 

$

44,655

 

$

86,360

 

 

 

 

 

 

 

 

 

 

 

 

 

Difference

 

$

(2,656

)

$

9,156

 

$

(2,980

)

$

(2,906

)

$

614

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Shares Outstanding

 

51,819

 

51,944

 

52,073

 

52,267

 

52,028

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per Share - Historical

 

$

0.08

 

$

0.43

 

$

0.23

 

$

0.91

 

$

1.65

 

Earnings per Share - Weekly

 

$

0.03

 

$

0.60

 

$

0.17

 

$

0.85

 

$

1.66

 

 

 

 

 

 

 

 

 

 

 

 

 

Difference

 

$

(0.05

)

$

0.17

 

$

(0.06

)

$

(0.06

)

$

0.01

 

 

Note: All of 2005 and Q4 2004 include the adjustment for a non-strategic discontinued operation.



 

Laureate Education, Inc.

Historical Results

Consolidated Statements of Continuing Operations

(unaudited)

 

 

 

1Q04

 

2Q04

 

3Q04

 

4Q04

 

FY04

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

Mexico/Central America (a)

 

$

47,938

 

$

37,167

 

$

46,195

 

$

62,171

 

$

193,471

 

South America (b)

 

18,335

 

45,974

 

47,473

 

55,232

 

167,014

 

Campus Based - Latin America

 

66,273

 

83,141

 

93,668

 

117,403

 

360,485

 

 

 

 

 

 

 

 

 

 

 

 

 

Mediterranean Region (c)

 

25,911

 

25,764

 

2,844

 

28,013

 

82,532

 

Hospitality

 

12,653

 

12,169

 

13,196

 

13,539

 

51,557

 

France

 

2,635

 

2,542

 

1,244

 

10,802

 

17,223

 

Campus Based - Europe

 

41,199

 

40,475

 

17,284

 

52,354

 

151,312

 

 

 

 

 

 

 

 

 

 

 

 

 

Campus Based Total

 

107,472

 

123,616

 

110,952

 

169,757

 

511,797

 

 

 

 

 

 

 

 

 

 

 

 

 

Laureate Online Education

 

24,684

 

34,635

 

35,158

 

40,657

 

135,134

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

132,156

 

158,251

 

146,110

 

210,414

 

646,931

 

 

 

 

 

 

 

 

 

 

 

 

 

Core operating expenses

 

122,563

 

128,376

 

122,063

 

155,305

 

528,307

 

Non-cash stock compensation expense

 

712

 

2,283

 

891

 

1,832

 

5,718

 

General and administrative expenses

 

5,289

 

5,431

 

5,450

 

5,210

 

21,380

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

128,564

 

136,090

 

128,404

 

162,347

 

555,405

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

3,592

 

22,161

 

17,706

 

48,067

 

91,526

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating items

 

 

 

 

 

 

 

 

 

 

 

Interest and other income (d)

 

3,302

 

16,043

 

1,160

 

7,674

 

28,179

 

Interest expense

 

(1,558

)

(1,595

)

(2,067

)

(2,450

)

(7,670

)

Foreign exchange gain (loss)

 

360

 

(297

)

(509

)

(510

)

(956

)

 

 

 

 

 

 

 

 

 

 

 

 

Total non-operating items

 

2,104

 

14,151

 

(1,416

)

4,714

 

19,553

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before minority interest, equity in net income (loss) of affliates and income taxes

 

5,696

 

36,312

 

16,290

 

52,781

 

111,079

 

 

 

 

 

 

 

 

 

 

 

 

 

Minority interest in (income) loss of consolidated subsidiaries, net of income tax

 

(2,474

)

(6,066

)

(4,192

)

(8,426

)

(21,158

)

Equity in net income (loss) of affiliates, net of income tax

 

(8

)

—

 

—

 

(315

)

(323

)

Income tax (expense) benefit

 

(707

)

(6,409

)

(2,795

)

3,113

 

(6,798

)

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

2,507

 

23,837

 

9,303

 

47,153

 

82,800

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income from discontinued operations, net of tax

 

(2,891

)

(3,027

)

31

 

(578

)

(6,465

)

Loss on disposal of discontinued operations, net of tax

 

—

 

—

 

—

 

(13,324

)

(13,324

)

Net (loss) income

 

$

(384

)

$

20,810

 

$

9,334

 

$

33,251

 

$

63,011

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares (basic)

 

44,925

 

45,344

 

46,524

 

48,624

 

46,356

 

Weighted average shares (diluted)

 

47,484

 

48,131

 

49,124

 

51,310

 

49,016

 

EPS-Income from continuing operations (basic)

 

$

0.06

 

$

0.53

 

$

0.20

 

$

0.97

 

$

1.79

 

EPS-Income from continuing operations (diluted)

 

$

0.05

 

$

0.50

 

$

0.19

 

$

0.92

 

$

1.69

 

EPS-Net (loss) income (basic)

 

$

(0.01

)

$

0.46

 

$

0.20

 

$

0.68

 

$

1.36

 

EPS-Net (loss) income (diluted)

 

$

(0.01

)

$

0.43

 

$

0.19

 

$

0.65

 

$

1.29

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation - Pro-Forma Income from Continuing Operations (e)

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes

 

$

3,214

 

$

30,246

 

$

12,098

 

$

44,040

 

$

89,598

 

Impact from early repayment of Educate, Inc. note receivable

 

—

 

(10,380

)

2,183

 

2,183

 

(6,014

)

Gain on UEM Land

 

—

 

—

 

—

 

(5,169

)

(5,169

)

Subtotal

 

3,214

 

19,866

 

14,281

 

41,054

 

78,415

 

Pro-Forma income tax expense

 

(707

)

(2,257

)

(3,668

)

(9,023

)

(15,655

)

Pro-Forma income from continuing operations

 

$

2,507

 

$

17,609

 

$

10,613

 

$

32,031

 

$

62,760

 

Pro-Forma weighted average shares (diluted)

 

47,484

 

48,131

 

49,124

 

51,310

 

49,016

 

EPS - Pro-Forma income from continuing operations (diluted)

 

$

0.05

 

$

0.37

 

$

0.22

 

$

0.62

 

$

1.28

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating profit (loss)

 

 

 

 

 

 

 

 

 

 

 

Campus Based—Latin America

 

$3,563

 

$20,796

 

$26,053

 

$35,046

 

$85,458

 

Campus Based—Europe

 

8,775

 

6,426

 

(4,465

)

13,327

 

24,063

 

Campus Based—Overhead

 

(2,909

)

(2,391

)

(2,646

)

(4,094

)

(12,040

)

Campus Based-Total

 

$9,429

 

$24,831

 

$18,942

 

$44,279

 

$97,481

 

Laureate Online

 

164

 

5,044

 

5,105

 

10,830

 

21,143

 

Total

 

$9,593

 

$29,875

 

$24,047

 

$55,109

 

$118,624

 

(a)           Mexico/Central America includes Mexico, Costa Rica and Panama.

(b)           South America includes Chile, Ecuador and Peru.

(c)           The Mediterranean region includes Spain.

(d)           Includes acceleration of original issue discount triggered by the early repayment of the K-12 seller note and the gain on the divestment of land at UEM.

(e)           The pro forma financial measures used in this current report on Form 8-K release are non-generally accepted accounting principles (“GAAP”) financial measures. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The Company’s management refers to these non-GAAP financial measures in making operating decisions because they provide meaningful supplemental information regarding the Company’s operational performance and facilitate management’s internal comparisons to the Company’s historical operating  results. In addition, the Company has historically reported similar non-GAAP financial measures to investors and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Investors are encouraged to review the reconciliation of the non-GAAP financial measures used in this current report on Form 8-K to their most directly comparable GAAP financial meaure as provided with the financial results attached to this current report on Form 8-K.



 

Laureate Education, Inc.

Historical Results

Consolidated Statements of Continuing Operations

(unaudited)

 

 

 

1Q05

 

2Q05

 

3Q05

 

4Q05

 

FY05

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

Mexico/Central America (a)

 

$

63,725

 

$

50,365

 

$

64,280

 

$

85,626

 

$

263,996

 

South America (b)

 

24,290

 

68,858

 

67,294

 

82,822

 

243,264

 

Campus Based - Latin America

 

88,015

 

119,223

 

131,574

 

168,448

 

507,260

 

 

 

 

 

 

 

 

 

 

 

 

 

Mediterranean Region (c)

 

29,115

 

27,731

 

1,574

 

29,063

 

87,483

 

Hospitality

 

13,795

 

11,560

 

14,648

 

13,390

 

53,393

 

France

 

12,045

 

11,877

 

5,599

 

13,364

 

42,885

 

Campus Based - Europe

 

54,955

 

51,168

 

21,821

 

55,817

 

183,761

 

 

 

 

 

 

 

 

 

 

 

 

 

Campus Based Total

 

142,970

 

170,391

 

153,395

 

224,265

 

691,021

 

 

 

 

 

 

 

 

 

 

 

 

 

Laureate Online Education

 

39,463

 

45,578

 

45,809

 

53,505

 

184,355

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

182,433

 

215,969

 

199,204

 

277,770

 

875,376

 

 

 

 

 

 

 

 

 

 

 

 

 

Core operating expenses

 

169,951

 

176,259

 

169,852

 

198,844

 

714,906

 

Non-cash stock compensation expense

 

780

 

414

 

1,335

 

2,059

 

4,588

 

General and administrative expenses

 

6,214

 

5,687

 

7,173

 

6,386

 

25,460

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

176,945

 

182,360

 

178,360

 

207,289

 

744,954

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

5,488

 

33,609

 

20,844

 

70,481

 

130,422

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating items

 

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

2,416

 

3,273

 

2,876

 

3,224

 

11,789

 

Interest expense

 

(2,373

)

(2,703

)

(2,611

)

(2,753

)

(10,440

)

Foreign exchange gain (loss)

 

249

 

(936

)

(90

)

(726

)

(1,503

)

 

 

 

 

 

 

 

 

 

 

 

 

Total non-operating items

 

292

 

(366

)

175

 

(255

)

(154

)

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before minority interest, equity in net income (loss) of affliates and income taxes

 

5,780

 

33,243

 

21,019

 

70,226

 

130,268

 

 

 

 

 

 

 

 

 

 

 

 

 

Minority interest in (income) loss of consolidated subsidiaries, net of income tax

 

(1,015

)

(6,237

)

(5,829

)

(11,239

)

(24,320

)

Equity in net income (loss) of affiliates, net of income tax

 

(90

)

(114

)

(166

)

(165

)

(535

)

Income tax expense

 

(691

)

(4,738

)

(2,977

)

(11,261

)

(19,667

)

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

3,984

 

22,154

 

12,047

 

47,561

 

85,746

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations, net of tax

 

612

 

3

 

(229

)

(1,797

)

(1,411

)

(Loss) gain on disposal of discontinued operations, net of tax

 

—

 

(9,751

)

—

 

599

 

(9,152

)

Net income

 

$

4,596

 

$

12,406

 

$

11,818

 

$

46,363

 

$

75,183

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares (basic)

 

49,237

 

49,566

 

49,801

 

49,881

 

49,625

 

Weighted average shares (diluted)

 

51,819

 

51,944

 

52,073

 

52,267

 

52,028

 

EPS-Income from continuing operations (basic)

 

$

0.08

 

$

0.45

 

$

0.24

 

$

0.95

 

$

1.73

 

EPS-Income from continuing operations (diluted)

 

$

0.08

 

$

0.43

 

$

0.23

 

$

0.91

 

$

1.65

 

EPS-Net income (basic)

 

$

0.09

 

$

0.25

 

$

0.24

 

$

0.93

 

$

1.52

 

EPS-Net income (diluted)

 

$

0.09

 

$

0.24

 

$

0.23

 

$

0.89

 

$

1.45

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating profit (loss)

 

 

 

 

 

 

 

 

 

 

 

Campus Based—Latin America

 

$4,744

 

$29,645

 

$35,586

 

$54,257

 

$124,232

 

Campus Based—Europe

 

9,115

 

7,577

 

(7,653

)

14,493

 

23,532

 

Campus Based—Overhead

 

(2,590

)

(2,898

)

(5,635

)

(4,405

)

(15,528

)

Campus Based-Total

 

$11,269

 

$34,324

 

$22,298

 

$64,345

 

$132,236

 

Laureate Online

 

1,213

 

5,386

 

7,054

 

14,581

 

28,234

 

Total

 

$12,482

 

$39,710

 

$29,352

 

$78,926

 

$160,470

 

(a)           Mexico/Central America includes Mexico, Costa Rica, Panama and Honduras.

(b)           South America includes Chile, Brazil, Ecuador and Peru.

(c)           The Mediterranean region includes Spain and Cyprus.



 

Laureate Education, Inc.

Restated Historical Results (including pro forma adjustments)

Consolidated Statements of Continuing Operations

Reflects new revenue recognition method adoption for prior periods presented

(unaudited)

 

 

 

1Q04

 

2Q04

 

3Q04

 

4Q04

 

FY04

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

Mexico/Central America (a)

 

$

46,668

 

$

39,123

 

$

43,116

 

$

63,825

 

$

192,732

 

South America (b)

 

16,987

 

53,517

 

43,066

 

53,190

 

166,760

 

Campus Based - Latin America

 

63,655

 

92,640

 

86,182

 

117,015

 

359,492

 

 

 

 

 

 

 

 

 

 

 

 

 

Mediterranean Region (c)

 

25,480

 

25,213

 

2,849

 

27,703

 

81,245

 

Hospitality

 

13,446

 

11,387

 

12,874

 

13,869

 

51,576

 

France

 

2,973

 

2,212

 

973

 

11,218

 

17,376

 

Campus Based - Europe

 

41,899

 

38,812

 

16,696

 

52,790

 

150,197

 

 

 

 

 

 

 

 

 

 

 

 

 

Campus Based Total

 

105,554

 

131,452

 

102,878

 

169,805

 

509,689

 

 

 

 

 

 

 

 

 

 

 

 

 

Laureate Online Education

 

24,684

 

34,635

 

35,158

 

40,655

 

135,132

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

130,238

 

166,087

 

138,036

 

210,460

 

644,821

 

 

 

 

 

 

 

 

 

 

 

 

 

Core operating expenses

 

122,783

 

128,597

 

122,304

 

155,550

 

529,234

 

Non-cash stock compensation expense (d)

 

—

 

—

 

—

 

—

 

—

 

General and administrative expenses

 

5,778

 

7,492

 

6,100

 

6,800

 

26,170

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

128,561

 

136,089

 

128,404

 

162,350

 

555,404

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

1,677

 

29,998

 

9,632

 

48,110

 

89,417

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating items

 

 

 

 

 

 

 

 

 

 

 

Interest and other income (e)

 

3,302

 

16,043

 

1,160

 

7,674

 

28,179

 

Interest expense

 

(1,558

)

(1,595

)

(2,067

)

(2,450

)

(7,670

)

Foreign exchange gain (loss)

 

359

 

(297

)

(509

)

(510

)

(957

)

 

 

 

 

 

 

 

 

 

 

 

 

Total non-operating items

 

2,103

 

14,151

 

(1,416

)

4,714

 

19,552

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before minority interest, equity in net income (loss) of affliates and income taxes

 

3,780

 

44,149

 

8,216

 

52,824

 

108,969

 

 

 

 

 

 

 

 

 

 

 

 

 

Minority interest in (income) loss of consolidated subsidiaries, net of income tax

 

(2,071

)

(7,402

)

(2,756

)

(8,247

)

(20,476

)

Equity in net income (loss) of affiliates, net of income tax

 

(8

)

—

 

—

 

(315

)

(323

)

Income tax (expense) benefit

 

(594

)

(6,931

)

(1,290

)

2,017

 

(6,798

)

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

1,107

 

29,816

 

4,170

 

46,279

 

81,372

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income from discontinued operations, net of tax

 

(2,892

)

(3,027

)

31

 

(578

)

(6,466

)

Loss on disposal of discontinued operations, net of tax

 

—

 

—

 

—

 

(13,324

)

(13,324

)

Net (loss) income

 

$

(1,785

)

$

26,789

 

$

4,201

 

$

32,377

 

$

61,582

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares (basic)

 

44,925

 

45,344

 

46,524

 

48,624

 

46,356

 

Weighted average shares (diluted)

 

47,484

 

48,131

 

49,124

 

51,310

 

49,016

 

EPS-Income from continuing operations (basic)

 

$

0.02

 

$

0.66

 

$

0.09

 

$

0.95

 

$

1.76

 

EPS-Income from continuing operations (diluted)

 

$

0.02

 

$

0.62

 

$

0.08

 

$

0.90

 

$

1.66

 

EPS-Net (loss) income (basic)

 

$

(0.04

)

$

0.59

 

$

0.09

 

$

0.67

 

$

1.33

 

EPS-Net (loss) income (diluted)

 

$

(0.04

)

$

0.56

 

$

0.09

 

$

0.63

 

$

1.26

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation - Pro-Forma Income from Continuing Operations (f)

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes

 

$

1,701

 

$

36,747

 

$

5,460

 

$

44,262

 

$

88,170

 

Impact from early repayment of Educate, Inc. note receivable

 

—

 

(10,380

)

2,183

 

2,183

 

(6,014

)

Gain on UEM Land

 

—

 

—

 

—

 

(5,169

)

(5,169

)

Subtotal

 

1,701

 

26,367

 

7,643

 

41,276

 

76,987

 

Pro-Forma income tax expense

 

(361

)

(6,918

)

(1,630

)

(6,414

)

(15,323

)

Pro-Forma income from continuing operations

 

$

1,340

 

$

19,449

 

$

6,013

 

$

34,862

 

$

61,664

 

Pro-Forma weighted average shares (diluted)

 

47,484

 

48,131

 

49,124

 

51,310

 

49,016

 

EPS - Pro-Forma income from continuing operations (diluted)

 

$

0.03

 

$

0.40

 

$

0.12

 

$

0.68

 

$

1.26

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating profit (loss)

 

 

 

 

 

 

 

 

 

 

 

Campus Based—Latin America

 

$

933

 

$

30,282

 

$

18,554

 

$

34,644

 

$

84,413

 

Campus Based—Europe

 

9,455

 

4,753

 

(5,062

)

13,766

 

22,912

 

Campus Based—Overhead

 

(3,064

)

(2,555

)

(2,831

)

(4,293

)

(12,743

)

Campus Based-Total

 

$

7,324

 

$

32,480

 

$

10,661

 

$

44,117

 

$

94,582

 

Laureate Online Education

 

131

 

5,010

 

5,071

 

10,793

 

21,005

 

Total

 

$

7,455

 

$

37,490

 

$

15,732

 

$

54,910

 

$

115,587

 

(a)           Mexico/Central America includes Mexico, Costa Rica and Panama.

(b)           South America includes Chile, Ecuador and Peru.

(c)           The Mediterranean region includes Spain.

(d)           This expense has been reclassed into the appropriate operating segments. This presentation will be required under FAS 123R, effective January 1, 2006.  This reclassification is provided for comparability purposes.

(e)           Includes acceleration of original issue discount triggered by the early repayment of the K-12 seller note and the gain on the divestment of land at UEM.

(f)            The pro forma financial measures used in this current report on Form 8-K release are non-generally accepted accounting principles (“GAAP”) financial measures. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The Company’s management refers to these non-GAAP financial measures in making operating decisions because they provide meaningful supplemental information regarding the Company’s operational performance and facilitate management’s internal comparisons to the Company’s historical operating  results. In addition, the Company has historically reported similar non-GAAP financial measures to investors and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Investors are encouraged to review the reconciliation of the non-GAAP financial measures used in this current report on Form 8-K to their most directly comparable GAAP financial meaure as provided with the financial results attached to this current report on Form 8-K.



 

Laureate Education, Inc.

Restated Historical Results (including pro forma adjustments)

Consolidated Statements of Continuing Operations

Reflects new revenue recognition method adoption for prior periods presented

(unaudited)

 

 

 

1Q05

 

2Q05

 

3Q05

 

4Q05

 

FY05

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

Mexico/Central America (a)

 

$

62,930

 

$

52,623

 

$

59,997

 

$

87,893

 

$

263,443

 

South America (b)

 

20,042

 

78,528

 

65,422

 

79,148

 

243,140

 

Campus Based - Latin America

 

82,972

 

131,151

 

125,419

 

167,041

 

506,583

 

 

 

 

 

 

 

 

 

 

 

 

 

Mediterranean Region (c)

 

29,140

 

27,924

 

3,086

 

28,564

 

88,714

 

Hospitality

 

14,601

 

10,770

 

14,178

 

13,854

 

53,403

 

France

 

12,502

 

11,547

 

5,308

 

13,414

 

42,771

 

Campus Based - Europe

 

56,243

 

50,241

 

22,572

 

55,832

 

184,888

 

 

 

 

 

 

 

 

 

 

 

 

 

Campus Based Total

 

139,215

 

181,392

 

147,991

 

222,873

 

691,471

 

 

 

 

 

 

 

 

 

 

 

 

 

Laureate Online Education

 

39,462

 

45,577

 

45,809

 

53,505

 

184,353

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

178,677

 

226,969

 

193,800

 

276,378

 

875,824

 

 

 

 

 

 

 

 

 

 

 

 

 

Core operating expenses

 

170,247

 

176,559

 

170,214

 

198,938

 

715,958

 

Non-cash stock compensation expense (d)

 

—

 

—

 

—

 

—

 

—

 

General and administrative expenses

 

6,696

 

5,800

 

8,145

 

8,355

 

28,996

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

176,943

 

182,359

 

178,359

 

207,293

 

744,954

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

1,734

 

44,610

 

15,441

 

69,085

 

130,870

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating items

 

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

2,416

 

3,273

 

2,876

 

3,224

 

11,789

 

Interest expense

 

(2,373

)

(2,703

)

(2,611

)

(2,753

)

(10,440

)

Foreign exchange gain (loss)

 

249

 

(936

)

(90

)

(726

)

(1,503

)

 

 

 

 

 

 

 

 

 

 

 

 

Total non-operating items

 

292

 

(366

)

175

 

(255

)

(154

)

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before minority interest, equity in net income (loss) of affliates and income taxes

 

2,026

 

44,244

 

15,616

 

68,830

 

130,716

 

 

 

 

 

 

 

 

 

 

 

 

 

Minority interest in (income) loss of consolidated subsidiaries, net of income tax

 

(381

)

(7,865

)

(4,634

)

(11,274

)

(24,154

)

Equity in net income (loss) of affiliates, net of income tax

 

(90

)

(114

)

(166

)

(165

)

(535

)

Income tax expense

 

(227

)

(4,955

)

(1,749

)

(12,736

)

(19,667

)

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

1,328

 

31,310

 

9,067

 

44,655

 

86,360

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations, net of tax

 

612

 

3

 

(229

)

(1,797

)

(1,411

)

(Loss) gain on disposal of discontinued operations, net of tax

 

—

 

(9,751

)

—

 

599

 

(9,152

)

Net income

 

$

1,940

 

$

21,562

 

$

8,838

 

$

43,457

 

$

75,797

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares (basic)

 

49,237

 

49,566

 

49,801

 

49,881

 

49,625

 

Weighted average shares (diluted)

 

51,819

 

51,944

 

52,073

 

52,267

 

52,028

 

EPS-Income from continuing operations (basic)

 

$

0.03

 

$

0.63

 

$

0.18

 

$

0.90

 

$

1.74

 

EPS-Income from continuing operations (diluted)

 

$

0.03

 

$

0.60

 

$

0.17

 

$

0.85

 

$

1.66

 

EPS-Net income (basic)

 

$

0.04

 

$

0.44

 

$

0.18

 

$

0.87

 

$

1.53

 

EPS-Net income (diluted)

 

$

0.04

 

$

0.42

 

$

0.17

 

$

0.83

 

$

1.46

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating profit (loss)

 

 

 

 

 

 

 

 

 

 

 

Campus Based—Latin America

 

$

(298

)

$

41,573

 

$

29,416

 

$

52,835

 

$

123,526

 

Campus Based—Europe

 

10,404

 

6,650

 

(6,981

)

14,497

 

24,570

 

Campus Based—Overhead

 

(2,844

)

(3,154

)

(5,861

)

(4,427

)

(16,286

)

Campus Based-Total

 

$

7,262

 

$

45,069

 

$

16,574

 

$

62,905

 

$

131,810

 

Laureate Online

 

1,168

 

5,341

 

7,012

 

14,535

 

28,056

 

Total

 

$

8,430

 

$

50,410

 

$

23,586

 

$

77,440

 

$

159,866

 

(a)           Mexico/Central America includes Mexico, Costa Rica, Panama and Honduras.

(b)           South America includes Chile, Brazil, Ecuador and Peru.

(c)           The Mediterranean region includes Spain and Cyprus.

(d)           This expense has been reclassed into the appropriate operating segments. This presentation will be required under FAS 123R, effective January 1, 2006.  This reclassification is provided for comparability purposes.