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Item 7.01. Regulation FD Disclosure.
On September 9, 2019, in connection with the launch of a secondary offering by a selling stockholder, Laureate Education, Inc. (the “Company”) made the following disclosure to prospective investors:
Recent Developments
Due to the combined impact of the delay of the expected closing of our planned sale of Inti Holdings, the indirect owner of INTI University and Colleges, a higher education institution with five campuses in Malaysia, beyond year-end 2019 and the closing of our divestiture of Education Turkey B.V. prior to year-end 2019, we now expect an approximately $30 million one-time negative impact on our previously provided free cash flow estimates for 2019. However, we do not expect any negative impact on existing 2020 unlevered free cash flow estimates of 11% of revenue. Fully updated 2019 free cash flow guidance will be provided in connection with our financial results for the third quarter of 2019.
Free cash flow consists of operating cash flow minus capital expenditures. Free cash flow provides a useful indicator about Laureate’s abilities to fund its operations and repay its debts. Laureate’s calculation of free cash flow is not necessarily comparable to calculations performed by other companies and reported as similarly titled measures. We have included this non-GAAP measure because it is a key measure used by our management and board of directors to understand performance and trends, to prepare and approve our annual budget and develop short- and long-term operational plans. This non-GAAP measure should be considered in addition to results prepared in accordance with generally accepted accounting principles (“GAAP”) but should not be considered a substitute for or superior to GAAP results.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| LAUREATE EDUCATION, INC. | ||
| By: | /s/ Victoria Silbey | |
| Name: | Victoria Silbey | |
| Title: | Senior Vice President, Secretary and Chief Legal Officer | |
Date: September 9, 2019