Note: EPS may not be comparable

Laureate Education (NASDAQ: LAUR) reported Q4 EPS of $0.48, $0.19 better than the analyst estimate of $0.29. Revenue for the quarter came in at $1.26 billion versus the consensus estimate of $1.23 billion.

Fourth Quarter 2017 Highlights (compared to fourth quarter 2016):

• Revenue increased 7% to $1,261.2 million; up 5% on an organic constant currency basis.1
• Operating income increased 6% or $10.5 million to $181.5 million.
• Net income for the quarter was $200.5 million, as compared to $38.5 million in the fourth quarter of 2016, primarily attributable to income tax benefits resulting from the U.S. tax reform law and, to a lesser extent, interest expense reductions following our IPO and debt refinancing transactions completed in 2017.
• Adjusted EBITDA increased 25% to $354.7 million; up 9% on an organic constant currency basis.

Outlook for Fiscal 2018

The Company is reaffirming the guidance for full year 2018 provided during its Investor Day at the end of January. The guidance for 2018 reflects the full year pro forma impact of the previously disclosed potential deconsolidation of three entities in Chile assuming promulgation of the new Higher Education Law, as well as our previously announced divestitures.

Based on the current foreign exchange spot rates1, Laureate currently expects its pro-forma organic (i.e., excluding acquisitions, divestitures and potential Chilean deconsolidation impacts) performance for full-year 2018 to be as follows:

• Total enrollments in the range of 955,000 to 959,000;
• Revenues to be in the range of $3,885 to $3,920 million;
• Adjusted EBITDA to be in the range of $763 to $770 million;
• Capex spending at approximately 7% of revenue;
• Cash interest expense of approximately $250 million, reflecting the improvements in our capital structure;
• Free cash flow, defined as operating cash flow less capex, expected to be approximately $100 million for 2018; and
• Reported earnings per share in 2018 to be affected by an approximately $57 million non-cash charge to earnings per share in the first quarter of 2018 related to accounting for the non-cash beneficial redemption and conversion features due to the terms of our Series A Preferred Stock.

GUIDANCE:

Laureate Education sees FY2018 revenue of $3.885-3.92 billion, versus the consensus of $4.07 billion.

For earnings history and earnings-related data on Laureate Education (LAUR) click here.