Laureate Education, Inc. Reports Record Fourth Quarter and Year End 2005 Results; Company Raises 2006 Financial Outlook; Achieves Record Enrollment of 217,000 Students Worldwide.BALTIMORE Baltimore, city (1990 pop. 736,014), N central Md., surrounded by but politically independent of Baltimore co., on the Patapsco River estuary, an arm of Chesapeake Bay; inc. 1745. -- Laureate Education Laureate Education, Inc. (NASDAQ: LAUR) is an education services holding company, based in Baltimore, Maryland, which owns a number of for-profit colleges and online universities, including Walden University and other college brands worldwide. , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : LAUR), the world's leading international provider of higher education higher education Study beyond the level of secondary education. Institutions of higher education include not only colleges and universities but also professional schools in such fields as law, theology, medicine, business, music, and art. , announced robust student enrollment and strong financial results for the quarter and year ended December December: see month. 31, 2005. --Full-year 2005 revenues increased 35% to $875.4 million, compared to $646.9 million in 2004. Fourth quarter 2005 revenues increased 32% to $277.8 million, compared to $210.4 million in 2004. --Total operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for 2005 increased 42% to $130.4 million, compared to $91.5 million in 2004. Total operating income for the fourth quarter 2005 increased 47% to $70.5 million, compared to $48.1 million in 2004. --The Company reported earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the full-year and quarter ending December 31, 2005 of $1.65 and $0.91 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, respectively. --The Company's campus-based institutions reported total student enrollment of 190,679 students at December 31, 2005, an increase of 41% over 2004. --Laureate Online Education reported fourth quarter total student enrollment increased 27% to 26,750 students. Walden University Walden University is a private, for-profit, specialized distance learning institution of higher learning. Headquartered in the Mills District in Minneapolis, Minnesota, Walden University embraces a post-baccalaureate educational system. , the centerpiece of Laureate lau·re·ate adj. 1. Worthy of the greatest honor or distinction: "The nation's pediatrician laureate is preparing to lay down his black bag" James Traub. 2. Online Education, reported fourth quarter total student enrollment increased 41% to 20,493 students. --In 2005, Laureate Education extended its international leadership by entering the higher education markets of Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. , Honduras Honduras (hŏnd  r`əs, –dyr`–; Span., ōnd , and
Cyprus Cyprus (sī`prəs), Gr. Kypros, Turk. Kıbrıs, officially Republic of Cyprus, republic (2005 est. pop. 780,000), 3,578 sq mi (9,267 sq km), an island in the E Mediterranean Sea, c.40 mi (60 km) S of Turkey and c. . Additionally, the Company's university in Mexico Mexico, city, MexicoMexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. opened a new campus in Torreon and acquired a campus in Hermosillo Hermosillo (ārmōsē`yō), city (1990 pop. 406,417), capital of Sonora state, NW Mexico, at the entrance to the gorge of the Sonora River. (UNO) during the year. --Throughout 2005, Laureate expanded capacity at several campus locations in Europe Europe (y r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and launched new academic
programs, including the UVM/Walden University dual-degree program, a
masters degree program in nursing at Walden WaldenThoreau’s classic; advocates a return to nature. [Am. Lit.: Van Doren, 208] See : Pastoralism , new study abroad programs and programs for working adults. --The Company increased full-year 2006 earnings outlook by $0.05 to between $2.05 and $2.15 per diluted share, excluding the impact of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123(R). Douglas Becker Douglas Becker is a choreographer and teacher working in many idioms, including contemporary ballet and improvisation throughout Europe and the United States. A founding member and principal dancer of the Frankfurt Ballet, where he performed with distinction for over 10 years under , Chairman and Chief Executive Officer of Laureate Education stated, "The implementation of Laureate's unique global strategy gained significant momentum in 2005. We extended our leadership by launching innovative academic programs, leveraging best management practices across our network, expanding capacity and entering new markets." Mr. Becker Beck´er n. 1. (Zool.) A European fish (Pagellus centrodontus); the sea bream or braise. added, "I am proud that we achieved very ambitious operational and financial goals for 2005, while investing for future growth. This success positions us for an exciting 2006 and beyond -- where we expect continued growth and improved efficiencies." Financial Results Total revenues for the fourth quarter of 2005 were $277.8 million, an increase of 32% compared to total revenues of $210.4 million in the fourth quarter of 2004. Total operating income for the fourth quarter 2005 increased 47% to $70.5 million, versus operating income of $48.1 million in the fourth quarter of 2004. After-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. income from continuing operations for the fourth quarter of 2005 was $47.6 million or $0.91 per diluted share, compared to $47.2 million or $0.92 per diluted share for the same period of 2004. Excluding the after-tax gain on the divestment divestment to strip one's investment from an entity. of UEM UEM Universidade Estadual de Maringa (State University of Maringa, Brazil) UEM Universidade Eduardo Mondlane (Maputo, Mozambique) UEM Unione Economica e Monetaria land and the impact from the early repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of the K-12 seller note, the growth of after-tax income from continuing operations would have been 47%, from $0.62 in the fourth quarter of 2004 to $0.91 per diluted share for the same period of 2005. For the twelve-month period ended December 31, 2005, total revenues were $875.4 million, an increase of 35% compared to total revenues of $646.9 million in the same period of 2004. Total operating income for the twelve-month period increased 42% to $130.4 million, versus operating income of $91.5 million in the same period of 2004. After-tax income from continuing operations for the twelve-month period ended December 31, 2005 was $85.7 million or $1.65 per diluted share, compared to $82.8 million or $1.69 per diluted share for the same period of 2004. Excluding the after-tax gain on the divestment of UEM land and the net gain from the early repayment of the K-12 seller note, the growth of after-tax income from continuing operations would have been 29%, from $1.28 in 2004 to $1.65 per diluted share in 2005. During the second quarter of 2005, the Company recorded a loss of $3.1 million on the disposal of WSI See wafer scale integration. . The Company is restating that loss to be $10.5 million. The adjustment relates to a reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of a deferred tax asset for this business. This is reflected in the loss from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. in the Company's results for the twelve months ended December 31, 2005. As a result of this change, the Company is evaluating the impact on its assessment of internal controls relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc tax processes over non-core operations. Total cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has at December 31, 2005 were approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $110 million, while total corporate debt was approximately $228 million. Effective January January: see month. 1, 2006, Laureate Education proactively and preferentially pref·er·en·tial adj. 1. Of, relating to, or giving advantage or preference: preferential treatment. 2. adopted a consistent weekly revenue recognition policy across all traditional campus-based units. The adoption will have no material effect on the Company's full-year earnings or full-year 2006 financial outlook. However, the weekly revenue recognition policy will change the quarterly seasonality of the overall business. For comparison purposes, Laureate will provide historical 2004-2005 financials stated with the new revenue recognition method on the Company's website and in an 8-K filing with the U.S. Securities and Exchange Commission. Today, Laureate International Universities consists of 24 institutions of higher education in 15 countries, offering programs to 217,429 students through 51 campuses (compared to 42 campuses in 2004) and online to students worldwide. Presentation materials for today's conference call with the financial community will be available to listeners through the investor relations Investor relations The process by which the corporation communicates with its investors. section of the Company's website, www.laureate-inc.com. The live webcast of Laureate's fourth quarter and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. conference call will be broadcast at 10:00 a.m. eastern time today.
Revenue Growth - Organic and Acquisition
Three months ended December 31st
% Growth
Revenue Amount Constant
(In Thousands) 2005(4) 2004 in USD Currency
---- ---- ------ --------
Central America(1) $78,424 $62,171 26% 20%
South America(2) 76,521 55,232 39% 25%
Europe Region 52,121 52,354 0% 10%
Online 53,505 40,657 32% 32%
------- -------
Subtotal 260,571 210,414 24%
Acquisitions(3) 17,199 NA
------- -------
Total $277,770 $210,414 32%
======= =======
(1) Central America includes Mexico, Costa Rica and Panama.
(2) South America includes Chile, Ecuador and Peru.
(3) Includes revenues for acquired institutions from the respective
dates of their acquisitions through the anniversary date.
(4) Excludes 2005 revenues prior to anniversary date of acquisition.
Revenue Growth - Organic and Acquisition
Twelve months ended December 31st
% Growth
Revenue Amount Constant
(In Thousands) 2005(4) 2004 in USD Currency
---- ---- ------ --------
Central America(1) $237,475 $193,471 23% 19%
South America(2) 216,259 167,014 29% 18%
Europe Region 157,252 151,312 4% 4%
Online 181,474 135,134 34% 34%
------- -------
Subtotal 792,460 646,931 22%
Acquisitions(3) 82,916 NA
Total $875,376 $646,931 35%
======= =======
(1) Central America includes Mexico, Costa Rica and Panama.
(2) South America includes Chile, Ecuador and Peru.
(3) Includes revenues for acquired institutions from the respective
dates of their acquisitions through the anniversary date.
(4) Excludes 2005 revenues prior to anniversary date of acquisition.
Student Enrollment
As of December 31st
New Student Enrollment(1) 2005 2004 % Change
---- ---- --------
Central America 33,389 27,541 21%
South America 29,546 22,927 29%
Europe Region 6,804 5,001 36%
------ ------
New Campus Based 69,739 55,469 26%
New Student Enrollment
at Acquired Schools(3) 2,897 --
------- -------
Subtotal 72,636 55,469 31%
Online 19,365 14,147 37%
New Student Enrollment
with Acquisitions 92,001 69,616 32%
====== ======
Total Student Enrollment(2) 2005 2004
---- ----
Central America 73,763 63,639 16%
South America 67,157 56,319 19%
Europe Region 16,119 15,210 6%
------- -------
Total Campus Based 157,039 135,168 16%
Total Student Enrollment
at Acquired Schools(3) 33,640 --
------- -------
Subtotal 190,679 135,168 41%
Online 26,750 20,988 27%
Total Student Enrollment
with Acquisitions 217,429 156,156 39%
======= =======
(1) New Student Enrollment is YTD.
(2) Total Student Enrollment is census as of December 31st.
(3) Acquisitions (less than 1 year) include the following: UNO
(Mexico), UNITEC (Honduras), Cyprus College and Anhembi Morumbi
(Brazil).
Financial Outlook The following statements are based on current expectations. These statements are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and actual results may differ materially. First Quarter 2006: --For its campus-based and online businesses, Laureate Education anticipates total revenue of $215 to $235 million for the first quarter 2006. --The Company anticipates Campus-Based revenue of $165 to $180 million for the first quarter 2006, with operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: between 3% and 4%. Latin America revenue is expected to be between $110 and $120 million with operating margins of (2%) to (3%). Europe revenue is expected to be between $55 and $60 million with operating margins of 21% to 22%. Campus-based general and administrative expenses are expected to be approximately $4.0 million. --The Company anticipates Online revenue of $50 to $55 million for the first quarter 2006, with operating margins between 7% and 8%. --General and administrative expenses are expected to be approximately $9 million in the first quarter 2006. --The Company currently believes that it will achieve a loss of ($0.01) to ($0.03) per diluted share (excluding the impact of SFAS123R) for the first quarter 2006, the Company's seasonally weakest quarter. The Company's first quarter seasonality is slightly more pronounced due to the voluntary adoption of a weekly revenue recognition policy across all business units. --Fully-diluted weighted average shares outstanding is expected to be approximately 52.3 million for the quarter ending March 31, 2006. Full-Year 2006: --For its campus-based and online businesses, Laureate Education anticipates total revenue of $1,080 to $1,150 million for the full-year 2006. --The Company anticipates Campus-Based revenue of $845 to $900 million in 2006, with operating margins between 19% and 20%. Latin America expects revenue of $645 to $690 million with operating margins of 22% to 24%. Europe expects revenue of $200 to $210 million with operating margins of 14% to 15%. Campus-based general and administrative expenses are expected to be $15 to $17 million. --The Company anticipates Online revenue of $235 to $250 million in 2006, with operating margins between 17% and 18%. --General and administrative expenses are expected to be $38 to $42 million in 2006. --Laureate Education increased its full-year 2006 earnings outlook by $0.05 to between $2.05 and $2.15 per diluted share, excluding the impact of SFAS123(R). Stock option expense for the full-year 2006 is expected to be between $0.10 and $0.12 per diluted share. --Fully-diluted weighted average shares outstanding is expected to be approximately 53.6 million for the year ending December 31, 2006. About Laureate Education, Inc. Laureate Education, Inc. (NASDAQ: LAUR) is focused exclusively on providing a superior university experience to over 217,000 students through the leading global network of accredited accredited recognition by an appropriate authority that the performance of a particular institution has satisfied a prestated set of criteria. accredited herds cattle herds which have achieved a low level of reactors to, e.g. campus-based and online universities. Addressing the rapidly growing global demand for higher education, Laureate offers a broad range of career-oriented undergraduate and graduate programs through campus-based universities located in Latin America, Europe, and Asia. Through online universities, Laureate offers the growing population of non-traditional, working-adult students the convenience and flexibility of distance learning to pursue undergraduate, master's mas·ter's n. A master's degree. and doctorate degree programs in major career fields including engineering, education, business, and healthcare. For more information, please visit our website, www.laureate-inc.com. Forward Looking Statements This release includes information that could constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provision of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Any such forward-looking statements may involve risk and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, the Company's actual results could differ materially from those described in the forward-looking statements. The following factors might cause such a difference: --The Company's operations can be materially affected by competition in its target markets and by overall market conditions, among other factors. --The Company's foreign operations, in particular, are subject to political, economic, legal, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. and currency-related risks. Additional information regarding these risk factors and uncertainties is detailed from time to time in the Company's filings with the Securities and Exchange Commission, including but not limited to our most recent Forms 10-K and 10-Q, available for viewing on our website. (To access this information on our website, www.laureate-inc.com, please click on "Investor Relations", "SEC Filings")
Laureate Education, Inc. & Subsidiaries
Consolidated Statements of Operations
(Amounts in thousands, except per share data)
Three Months Ended December 31,
-----------------------------------------
2005 2004 $ Variance % Variance
-----------------------------------------
Revenues
Central America (a) $85,626 $62,171 $23,455 38%
South America (b) 82,822 55,232 27,590 50%
--------- --------- ---------- ----------
Campus Based - Latin
America 168,448 117,403 51,045 43%
Mediterranean Region (c) 29,063 28,013 1,050 4%
Hospitality 13,390 13,539 (149) -1%
France 13,364 10,802 2,562 24%
--------- --------- ---------- ----------
Campus Based - Europe 55,817 52,354 3,463 7%
--------- --------- ---------- ----------
Campus Based Total 224,265 169,757 54,508 32%
--------- --------- ---------- ----------
Laureate Online Education 53,505 40,657 12,848 32%
--------- --------- ---------- ----------
Total revenues 277,770 210,414 67,356 32%
--------- --------- ---------- ----------
Core operating expenses 198,844 155,305 43,539 28%
Non-cash stock compensation
expense 2,059 1,832 227 12%
General and administrative
expenses 6,386 5,210 1,176 23%
--------- --------- ---------- ----------
Total operating expenses 207,289 162,347 44,942 28%
--------- --------- ---------- ----------
Operating income 70,481 48,067 22,414 47%
Non-operating items
Interest and other
income(d) 3,224 7,674 (4,450) -58%
Interest expense (2,753) (2,450) (303) -12%
Foreign exchange loss (726) (510) (216) -42%
--------- --------- ---------- ----------
Total non-operating items (255) 4,714 (4,969) N/A
--------- --------- ---------- ----------
Income from continuing
operations before minority
interest, equity in net
income (loss) of affiliates,
and income taxes 70,226 52,781 17,445 33%
Minority interest in income
of consolidated
subsidiaries, net of income
tax (11,239) (8,426) (2,813) -33%
Equity in net loss of
affiliates, net of income
tax (165) (315) 150 48%
Income tax (expense) benefit (11,261) 3,113 (14,374) N/A
--------- --------- ---------- ----------
Income from continuing
operations 47,561 47,153 408 1%
(Loss) income from
discontinued operations, net
of income tax (e) (2,745) (578) 451 78%
Gain (loss) on disposal of
discontinued operations, net
of income tax (g) 1,547 (13,324) 12,253 92%
--------- --------- ---------- ----------
Net Income $46,363 $33,251 $13,112 39%
========= ========= ========== ==========
Weighted average shares
(basic) 49,881 48,624
Weighted average shares
(diluted) 52,267 51,310
EPS-Net Income (basic) $0.93 $0.68
EPS-Net Income (diluted) $0.89 $0.65
EPS-Income from continuing
operations (basic) $0.95 $0.97
EPS-Income from continuing
operations (diluted) $0.91 $0.92
Reconciliation - Pro Forma
Income from Continuing
Operations (f)
-----------------------------
Income from continuing
operations before income
taxes $44,040
Impact from early
repayment of Educate Inc.
note receivable 2,183
Gain on UEM Land (5,169)
---------
Subtotal $41,054
Pro Forma tax expense (9,023)
---------
Pro Forma income from
continuing operations $32,031
---------
Pro Forma weighted average
shares (diluted) 51,310
EPS - Pro Forma income from
continuing operations
(diluted) $0.62
Segment operating profit
(loss):
Campus Based - Latin
America $54,257 $35,046 $19,211 55%
Campus Based - Europe 14,493 13,327 1,166 9%
Campus Based - Overhead (4,405) (4,094) (311) -8%
--------- --------- ---------- ----------
Campus Based - Total $64,345 $44,279 $20,066 45%
--------- --------- ---------- ----------
Laureate Online $14,581 $10,830 $3,751 35%
--------- --------- ---------- ----------
a) 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) For the three months ended December 31, 2004, 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 2005 and 2004 operating results present the K-12 (including
UK/France), WSI and India business units as discontinued
operations.
f) The pro forma measures used in this press release are non-generally
acceptable accounting principle ("GAAP") financial measures. Non-
GAAP should not be considered as a substitute for, or superior to,
measures financial 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 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 press release to their most directly
comparable GAAP financial measure as provided with the financial
results attached to this press release.
g) The Company is restating in the second quarter of 2005 to reflect
the change in income tax expense of $7.4 million related to a
reversal of a deferred tax asset of WSI. As a result, the Company
is evaluating the impact on our assessment of internal controls
relating to tax processes over non-core operations.
Year Ended December 31,
-----------------------------------------
2005 2004 $ Variance % Variance
--------- --------- ---------- ----------
Revenues
Central America (a) $263,996 $193,471 $70,525 36%
South America (b) 243,264 167,014 76,250 46%
--------- --------- ---------- ----------
Campus Based - Latin
America 507,260 360,485 146,775 41%
Mediterranean Region (c) 87,483 82,532 4,951 6%
Hospitality 53,393 51,557 1,836 4%
France 42,885 17,223 25,662 149%
--------- --------- ---------- ----------
Campus Based - Europe 183,761 151,312 32,449 21%
--------- --------- ---------- ----------
Campus Based Total 691,021 511,797 179,224 35%
--------- --------- ---------- ----------
Laureate Online Education 184,355 135,134 49,221 36%
--------- --------- ---------- ----------
Total revenues 875,376 646,931 228,445 35%
--------- --------- ---------- ----------
Core operating expenses 714,906 528,307 186,599 35%
Non-cash stock compensation
expense 4,588 5,718 (1,130) -20%
General and administrative
expenses 25,460 21,380 4,080 19%
--------- --------- ---------- ----------
Total operating expenses 744,954 555,405 189,549 34%
--------- --------- ---------- ----------
Operating income 130,422 91,526 38,896 42%
Non-operating items
Interest and other
income(d) 11,789 28,179 (16,390) -58%
Interest expense (10,440) (7,670) (2,770) -36%
Foreign exchange loss (1,503) (956) (547) -57%
--------- --------- ---------- ----------
Total non-operating items (154) 19,553 (19,707) N/A
--------- --------- ---------- ----------
Income from continuing
operations before minority
interest, equity in net
income (loss) of affiliates,
and income taxes 130,268 111,079 19,189 17%
Minority interest in income
of consolidated
subsidiaries, net of income
tax (24,320) (21,158) (3,162) -15%
Equity in net loss of
affiliates, net of income
tax (535) (323) (212) -66%
Income tax (expense) benefit (19,667) (6,798) (12,869) -189%
--------- --------- ---------- ----------
Income from continuing
operations 85,746 82,800 2,946 4%
(Loss) income from LT-200%
discontinued operations, net
of income tax (e) (2,359) (6,465) 6,724
Gain (loss) on disposal of
discontinued operations, net
of income tax (g) (8,204) (13,324) 2,502 19%
--------- --------- ---------- ----------
Net Income $75,183 $63,011 $12,172 19%
========= ========= ========== ==========
Weighted average shares
(basic) 49,625 46,356
Weighted average shares
(diluted) 52,028 49,016
EPS-Net Income (basic) $1.52 $1.36
EPS-Net Income (diluted) $1.45 $1.29
EPS-Income from continuing
operations (basic) $1.73 $1.79
EPS-Income from continuing
operations (diluted) $1.65 $1.69
Reconciliation - Pro Forma
Income from Continuing
Operations (f)
-----------------------------
Income from continuing
operations before income
taxes $89,598
Impact from early
repayment of Educate Inc.
note receivable (6,014)
Gain on UEM Land (5,169)
---------
Subtotal $78,415
Pro Forma tax expense (15,655)
---------
Pro Forma income from
continuing operations $62,760
---------
Pro Forma weighted average
shares (diluted) 49,016
EPS - Pro Forma income from
continuing operations
(diluted) $1.28
Segment operating profit
(loss):
Campus Based - Latin
America $124,232 $85,458 $38,774 45%
Campus Based - Europe 23,532 24,063 (531) -2%
Campus Based - Overhead (15,528) (12,040) (3,488) -29%
--------- --------- ---------- ----------
Campus Based - Total $132,236 $97,481 $34,755 36%
--------- --------- ---------- ----------
Laureate Online $28,234 $21,143 $7,091 34%
--------- --------- ---------- ----------
a) 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) For the twelve months ended December 31, 2004, 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 2005 and 2004 operating results present the K-12 (including
UK/France), WSI and India business units as discontinued
operations.
f) The pro forma measures used in this press release are non-generally
acceptable accounting principle ("GAAP") financial measures. Non-
GAAP should not be considered as a substitute for, or superior to,
measures financial 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 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 press release to their most directly
comparable GAAP financial measure as provided with the financial
results attached to this press release.
g) The Company is restating in the second quarter of 2005 to reflect
the change in income tax expense of $7.4 million related to a
reversal of a deferred tax asset of WSI. As a result, the Company
is evaluating the impact on our assessment of internal controls
relating to tax processes over non-core operations.
LT = Less Than
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