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Item 1. Financial Statements

2023-08-03 compared with 2023-05-04 · 203 added, 68 removed, 377 unchanged (42% of the section changed)

4 unchanged sentences

IN THOUSANDS, except per share amounts

For the three months ended March 31, 2023 2022

For the three months ended June 30, 2023 2022

(Unaudited) (Unaudited)

7 unchanged sentences

Interest expense ( 6,137 ) ( 4,164 )

Other (expense) income, net ( 129 ) 246

Foreign currency exchange loss, net ( 32,357 ) ( 14,451 )

Gain on disposal of subsidiaries, net 1 1,461

Income from continuing operations before income taxes and equity in net loss of affiliates 117,818 111,418

Income tax expense ( 57,468 ) ( 71,966 )

Equity in net loss of affiliates, net of tax — ( 38 )

Income from continuing operations 60,350 39,414

(Loss) income from discontinued operations, net of tax of $ 0 for both periods

( 4,037 ) 4,145

Net income 56,313 43,559

Net income attributable to noncontrolling interests ( 136 ) ( 136 )

Net income attributable to Laureate Education, Inc.

$ 56,177 $ 43,423

Basic earnings (loss) per share:

Income from continuing operations $ 0.38 $ 0.24

(Loss) income from discontinued operations ( 0.03 ) 0.02

Basic earnings per share $ 0.35 $ 0.26

Diluted earnings (loss) per share:

Income from continuing operations $ 0.38 $ 0.23

(Loss) income from discontinued operations ( 0.03 ) 0.02

Diluted earnings per share $ 0.35 $ 0.25

The accompanying notes are an integral part of these consolidated financial statements.

LAUREATE EDUCATION, INC.

AND SUBSIDIARIES

Consolidated Statements of Operations

IN THOUSANDS, except per share amounts

For the six months ended June 30, 2023 2022

(Unaudited) (Unaudited)

Revenues $ 713,322 $ 594,944

Costs and expenses:

Direct costs 519,310 425,694

General and administrative expenses 22,274 33,431

Loss on impairment of assets 1,620 144

Operating income 170,118 135,675

Interest income 4,109 3,653

Interest expense ( 12,089 ) ( 7,895 )

Other income (expense), net 132 ( 980 )

1 unchanged sentence

Gain on disposal of subsidiaries, net 307 1,461

(Loss) income from continuing operations before income taxes and equity in net (loss) income of affiliates ( 16,550 ) 2,444

Income from continuing operations before income taxes and equity in net (loss) income of affiliates 101,268 113,862

Income tax expense ( 67,663 ) ( 119,933 )

Equity in net (loss) income of affiliates, net of tax ( 3 ) 70

Loss from continuing operations ( 26,748 ) ( 45,415 )

Income (loss) from continuing operations 33,602 ( 6,001 )

(Loss) income from discontinued operations, net of tax of $ 0 for both periods

Net loss ( 26,762 ) ( 44,680 )

( 4,051 ) 4,880

Net income (loss) 29,551 ( 1,121 )

Net loss attributable to noncontrolling interests 19 333

Net loss attributable to Laureate Education, Inc.

Net income (loss) attributable to Laureate Education, Inc.

$ 29,570 $ ( 788 )

Basic and diluted earnings (loss) per share:

Loss from continuing operations $ ( 0.17 ) $ ( 0.25 )

Income from discontinued operations — —

Basic and diluted loss per share $ ( 0.17 ) $ ( 0.25 )

Income (loss) from continuing operations $ 0.21 $ ( 0.03 )

(Loss) income from discontinued operations ( 0.03 ) 0.03

Basic and diluted earnings per share $ 0.18 $ —

The accompanying notes are an integral part of these consolidated financial statements.

2 unchanged sentences

Consolidated Statements of Comprehensive Income

For the three months ended March 31, 2023 2022

For the three months ended June 30, 2023 2022

(Unaudited) (Unaudited)

Net loss $ ( 26,762 ) $ ( 44,680 )

Net income $ 56,313 $ 43,559

Other comprehensive income:

1 unchanged sentence

91,915 17,972

Total other comprehensive income 91,915 17,972

Comprehensive income 148,228 61,531

Net comprehensive income attributable to noncontrolling interests ( 44 ) ( 139 )

Comprehensive income attributable to Laureate Education, Inc.

$ 148,184 $ 61,392

The accompanying notes are an integral part of these consolidated financial statements.

LAUREATE EDUCATION, INC.

AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the six months ended June 30, 2023 2022

(Unaudited) (Unaudited)

Net income (loss) $ 29,551 $ ( 1,121 )

Other comprehensive income:

Foreign currency translation adjustment, net of tax of $ 0 for both periods

164,712 67,547

Minimum pension liability adjustment, net of tax of $ 0 for both periods

20 unchanged sentences

Prepaid expenses and other current assets 30,343 19,445

Current assets held for sale 1,066 —

Total current assets 293,581 226,199

13 unchanged sentences

Other assets 40,399 40,677

Long-term assets held for sale 10,021 —

Total assets $ 2,170,891 $ 1,972,237

15 unchanged sentences

Other current liabilities 25,433 17,587

Current liabilities held for sale 1,388 —

Total current liabilities 413,412 381,387

5 unchanged sentences

Other long-term liabilities 32,943 30,823

Long-term liabilities held for sale 10,349 —

Total liabilities 1,198,289 1,196,482

1 unchanged sentence

Stockholders' equity:

Preferred stock, par value $ 0.001 per share – 50,000 shares authorized, no shares issued and outstanding as of March 31, 2023 and December 31, 2022

Common stock, par value $ 0.004 per share – 700,000 shares authorized, 230,948 shares issued and 157,174 shares outstanding as of March 31, 2023 and 230,779 shares issued and 157,013 shares outstanding as of December 31, 2022

Preferred stock, par value $ 0.001 per share – 50,000 shares authorized, no shares issued and outstanding as of June 30, 2023 and December 31, 2022

Common stock, par value $ 0.004 per share – 700,000 shares authorized, 157,220 shares issued and outstanding as of June 30, 2023 and 230,779 shares issued and 157,013 shares outstanding as of December 31, 2022

Additional paid-in capital 1,181,501 2,204,755

1 unchanged sentence

Accumulated other comprehensive loss ( 277,626 ) ( 442,424 )

Treasury stock at cost ( 73,766 shares held at both March 31, 2023 and December 31, 2022)

Treasury stock at cost ( 73,766 shares held at December 31, 2022)

— ( 1,026,272 )

8 unchanged sentences

Consolidated Statements of Cash Flows

For the three months ended March 31, 2023 2022

For the six months ended June 30, 2023 2022

Cash flows from operating activities (Unaudited) (Unaudited)

Net loss $ ( 26,762 ) $ ( 44,680 )

Net income (loss) $ 29,551 $ ( 1,121 )

Adjustments to reconcile net income to net cash provided by operating activities:

7 unchanged sentences

Deferred income taxes ( 6,867 ) 9,549

Unrealized foreign currency exchange loss (gain) 28,949 ( 753 )

Non-cash loss from non-income tax contingencies 61 69

Unrealized foreign currency exchange loss 61,264 15,115

Other, net ( 8,828 ) ( 3,007 )

19 unchanged sentences

Payments to repurchase common stock — ( 206,289 )

Net cash provided by (used in) financing activities 21,144 ( 104,138 )

Net cash used in financing activities ( 45,683 ) ( 226,184 )

Effects of exchange rate changes on Cash and cash equivalents and Restricted cash 8,658 10,034

Change in cash included in current assets held for sale ( 560 ) —

Net change in Cash and cash equivalents and Restricted cash 26,719 ( 168,474 )

35 unchanged sentences

We record refunds as a reduction of deferred revenue as applicable.

The following table shows the components of Revenues by reportable segment and as a percentage of total revenue for the three months ended March 31, 2023 and 2022:

The following table shows the components of Revenues by reportable segment and as a percentage of total revenue for the three months ended June 30, 2023 and 2022:

Mexico Peru Corporate (1)

10 unchanged sentences

(1) Includes the elimination of inter-segment revenues.

The following table shows the components of Revenues by reportable segment and as a percentage of total revenue for the six months ended June 30, 2023 and 2022:

Mexico Peru Corporate (1)

Tuition and educational services $ 476,246 $ 339,603 $ — $ 815,849 114 %

Other 62,382 27,388 ( 6 ) 89,764 13 %

Gross revenue 538,628 366,991 ( 6 ) 905,613 127 %

Discounts / waivers / scholarships ( 164,530 ) ( 27,761 ) — ( 192,291 ) ( 27 ) %

Total $ 374,098 $ 339,230 $ ( 6 ) $ 713,322 100 %

Tuition and educational services $ 363,010 $ 303,588 $ — $ 666,598 112 %

Other 48,120 26,349 3,178 77,647 13 %

Gross revenue 411,130 329,937 3,178 744,245 125 %

Discounts / waivers / scholarships ( 123,921 ) ( 25,380 ) — ( 149,301 ) ( 25 ) %

Total $ 287,209 $ 304,557 $ 3,178 $ 594,944 100 %

(1) Includes the elimination of inter-segment revenues.

Contract Balances

5 unchanged sentences

All of our contract assets are considered accounts receivable and are included within the Accounts and notes receivable balance in the accompanying Consolidated Balance Sheets.

Total accounts receivable from our contracts with students were $ 120,261 and $ 133,105 as of March 31, 2023 and December 31, 2022, respectively.

The decrease in the contract assets balance at March 31, 2023 compared to December 31, 2022 was primarily driven by collections, in particular the repayment of outstanding amounts by students re-enrolling for the next academic session.

Total accounts receivable from our contracts with students were $ 186,729 and $ 133,105 as of June 30, 2023 and December 31, 2022, respectively.

The increase in the contract assets balance at June 30, 2023 compared to December 31, 2022 was primarily driven by enrollment cycles.

The first and third calendar quarters generally coincide with the primary and secondary intakes for our larger institutions.

All contract asset amounts are classified as current.

Contract liabilities in the amount of $ 114,832 and $ 51,264 were included within the Deferred revenue and student deposits balance in the current liabilities section of the accompanying Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022, respectively.

The increase in the contract liability balance during the period ended March 31, 2023 was the result of semester billings and cash payments received in advance of satisfying performance obligations, partially offset by revenue recognized during that period.

Revenue recognized for the three months ended March 31, 2023 that was included in the contract liability balance at the beginning of the year was approximately $ 36,400 .

Contract liabilities in the amount of $ 57,526 and $ 51,264 were included within the Deferred revenue and student deposits balance in the current liabilities section of the accompanying Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022, respectively.

The increase in the contract liability balance during the period ended June 30, 2023 was the result of semester billings and cash payments received in advance of satisfying performance obligations, partially offset by revenue recognized during that period.

Revenue recognized for the six months ended June 30, 2023 that was included in the contract liability balance at the beginning of the year was approximately $ 49,400 .

Assets Held for Sale

During the second quarter of 2023, two of the Company’s subsidiaries that operate K-12 educational programs in Mexico met the criteria for classification as held for sale under ASC 360-10-45-9, “Long-Lived Assets Classified as Held for Sale.” The sale of the K-12 campuses is intended to allow the Mexico segment to focus on its core business.

The assets and liabilities of this disposal group are recorded at the lower of their carrying values or their estimated fair values less costs to sell.

The planned sale of this disposal group does not represent a strategic shift and therefore does not qualify for presentation as a discontinued operation in the Consolidated Financial Statements.

The carrying amounts of the major classes of assets and liabilities that were classified as held for sale are presented in the following table:

June 30, 2023 December 31, 2022

Assets Held for Sale

Cash and cash equivalents $ 560 $ —

Receivables, net 473 —

Property and equipment, net 917 —

Operating lease right-of-use assets, net 9,104 —

Other assets 33 —

Total assets held for sale $ 11,087 $ —

Liabilities Held for Sale

Deferred revenue and student deposits $ 879 —

Operating leases, including current portion 9,226 —

Long-term debt, including current portion 868 —

Other liabilities 764 —

Total liabilities held for sale $ 11,737 $ —

The long-term debt balance represents a finance lease for property.

Business and Geographic Segment Information

5 unchanged sentences

The Mexico and Peru markets are characterized by what we believe is a significant imbalance between supply and demand.

The demand for higher education is large and growing and is fueled by several demographic and economic factors, including a growing middle class, global growth in services and technology-related industries and recognition of the significant personal and economic benefits

gained by graduates of higher education institutions.

The target demographics are primarily 18- to 24-year-olds in both countries in which we compete.

9 unchanged sentences

In Peru, private universities are increasingly providing the capacity to meet growing demand in the higher-education market.

Laureate owns three institutions in Peru.

Laureate owns three institutions in Peru, with a footprint of 19 campuses.

Inter-segment transactions are accounted for in a similar manner as third-party transactions and are eliminated in consolidation.

The Corporate amounts presented in the following tables include corporate charges that were not allocated to our reportable segments and adjustments to eliminate inter-segment items.

We evaluate segment performance based on Adjusted EBITDA, which is a non-GAAP performance measure defined as Income (loss) from continuing operations before income taxes and equity in net income of affiliates, adding back the following items:

Gain on disposal of subsidiaries, net, Foreign currency exchange loss, net, Other income (expense), net, Interest expense, Interest income, Depreciation and amortization expense, Loss on impairment of assets, Share-based compensation expense and expenses related to our Excellence-in-Process (EiP) initiative.

We evaluate segment performance based on Adjusted EBITDA, which is a non-GAAP performance measure defined as Income from continuing operations before income taxes and equity in net income of affiliates, adding back the following items:

Gain on disposal of subsidiaries, net, Foreign currency exchange loss, net, Other (expense) income, net, Interest expense, Interest income, Depreciation and amortization expense, Loss on impairment of assets, Share-based compensation expense and expenses related to our Excellence-in-Process (EiP) initiative.

Our EiP initiative was completed as of December 31, 2021, except for certain EiP expenses related to the completion of programs that began in prior periods.

7 unchanged sentences

We use total assets as the measure of assets for reportable segments.

The following tables provide financial information for our reportable segments, including a reconciliation of Adjusted EBITDA to (Loss) income from continuing operations before income taxes and equity in net income of affiliates, as reported in the Consolidated Statements of Operations:

For the three months ended March 31, 2023 2022

The following tables provide financial information for our reportable segments, including a reconciliation of Adjusted EBITDA to Income from continuing operations before income taxes and equity in net income of affiliates, as reported in the Consolidated Statements of Operations:

For the three months ended For the six months ended

June 30, June 30,

2023 2022 2023 2022

Mexico $ 192,135 $ 144,659 $ 374,098 $ 287,209

15 unchanged sentences

Interest expense ( 6,137 ) ( 4,164 ) ( 12,089 ) ( 7,895 )

Other income (expense), net 261 ( 1,226 )

Other (expense) income, net ( 129 ) 246 132 ( 980 )

Foreign currency loss, net ( 32,357 ) ( 14,451 ) ( 61,309 ) ( 18,052 )

Gain on disposal of subsidiaries, net 1 1,461 307 1,461

(Loss) income from continuing operations before income taxes and equity in net income of affiliates $ ( 16,550 ) $ 2,444

March 31, 2023 December 31, 2022

Income from continuing operations before income taxes and equity in net income of affiliates $ 117,818 $ 111,418 $ 101,268 $ 113,862

June 30, 2023 December 31, 2022

Mexico $ 1,386,524 $ 1,220,630

2 unchanged sentences

Total assets $ 2,170,891 $ 1,972,237

The change in the net carrying amount of Goodwill from December 31, 2022 through March 31, 2023 was composed of the following items:

The change in the net carrying amount of Goodwill from December 31, 2022 through June 30, 2023 was composed of the following items:

Mexico Peru Total

1 unchanged sentence

Currency translation adjustments 71,689 3,541 75,230

Balance at March 31, 2023 $ 547,005 $ 71,466 $ 618,471

Balance at June 30, 2023 $ 584,679 $ 74,044 $ 658,723

Outstanding long-term debt was as follows:

March 31, 2023 December 31, 2022

June 30, 2023 December 31, 2022

Senior long-term debt:

10 unchanged sentences

Under our Third Amended and Restated Credit Agreement (the Third A&R Credit Agreement), the Company maintains a revolving credit facility (the Senior Secured Credit Facility) that has a borrowing capacity of $ 410,000 and a maturity date of October 7, 2024.

As of March 31, 2023 and December 31, 2022, the Senior Secured Credit Facility had a total outstanding balance of $ 138,000 and $ 100,000 , respectively.

As of June 30, 2023 and December 31, 2022, the Senior Secured Credit Facility had a total outstanding balance of $ 88,000 and $ 100,000 , respectively.

Estimated Fair Value of Debt

As of March 31, 2023 and December 31, 2022, the estimated fair value of our debt approximated its carrying value.

As of June 30, 2023 and December 31, 2022, the estimated fair value of our debt approximated its carrying value.

Certain Covenants

As of March 31, 2023, our Third A&R Credit Agreement contained certain negative covenants including, among others:

As of June 30, 2023, our Third A&R Credit Agreement contained certain negative covenants including, among others:

(1) limitations on additional indebtedness;

4 unchanged sentences

The agreement also provides that if (i) the Company’s Consolidated Total Debt to Consolidated EBITDA ratio, as defined in the Third A&R Credit Agreement, is not greater than 4.75 x as of such date and (ii) less than 25 % of the revolving credit facility is utilized as of that date, then such financial covenant shall not apply.

As of March 31, 2023, more than 25 % of the revolving credit facility was utilized and we were in compliance with the leverage ratio covenant.

As of June 30, 2023, these conditions were satisfied and, therefore, we were not subject to the leverage ratio covenant.

In addition, indebtedness at some of our locations contain financial maintenance covenants.

We were in compliance with these covenants as of March 31, 2023.

We were in compliance with these covenants as of June 30, 2023.

Laureate conducts a significant portion of its operations at leased facilities, including many of Laureate's higher education facilities and other office locations.

23 unchanged sentences

Income Tax Contingencies

As of March 31, 2023 and December 31, 2022, Laureate had recorded cumulative liabilities for income tax contingencies of $ 127,568 and $ 130,323 , respectively.

As of June 30, 2023 and December 31, 2022, Laureate had recorded cumulative liabilities for income tax contingencies of $ 132,552 and $ 130,323 , respectively.

Non-Income Tax Loss Contingencies

1 unchanged sentence

Laureate intends to vigorously defend against these matters.

As of March 31, 2023 and December 31, 2022, approximately $ 12,500 and $ 11,400 , respectively, of loss contingencies were included in Other long-term liabilities and Other current liabilities on the Consolidated Balance Sheets.

As of June 30, 2023 and December 31, 2022, approximately $ 12,700 and $ 11,400 , respectively, of loss contingencies were included in Other long-term liabilities and Other current liabilities on the Consolidated Balance Sheets.

We have also identified certain loss contingencies that we have assessed as being reasonably possible of loss, but not probable of loss, and could have an adverse effect on the Company’s results of operations if the outcomes are unfavorable.

2 unchanged sentences

During the first quarter of 2021, one of our Peruvian institutions issued a bank guarantee in order to appeal a preliminary tax assessment received related to tax audits of 2014 and 2015.

As of March 31, 2023 and December 31, 2022, the amount of the guarantee was $ 7,172 and $ 7,076 , respectively.

As of June 30, 2023 and December 31, 2022, the amount of the guarantee was $ 7,428 and $ 7,076 , respectively.

Stockholders’ Equity

The components of net changes in stockholders’ equity for the three months ended March 31, 2023 are as follows:

The components of net changes in stockholders’ equity for the fiscal quarters of 2023 are as follows:

Laureate Education, Inc.

10 unchanged sentences

Balance at March 31, 2023 157,174 $ 924 $ 2,205,434 $ 12,637 $ ( 369,633 ) $ ( 1,026,272 ) $ ( 2,158 ) $ 820,932

The components of net changes in stockholders’ equity for the three months ended March 31, 2022 are as follows:

Non-cash share-based compensation — — 1,976 — — — — 1,976

Retirement of treasury stock — ( 295 ) ( 1,025,977 ) — — 1,026,272 — —

Exercise of stock options and vesting of restricted stock units, net of shares withheld to satisfy tax withholding 46 — 44 — — — — 44

Equitable adjustments to stock-based awards — — 24 — — — — 24

Net income — — — 56,177 — — 136 56,313

Foreign currency translation adjustment, net of tax of $ 0

— — — — 92,007 — ( 92 ) 91,915

Balance at June 30, 2023 157,220 $ 629 $ 1,181,501 $ 68,814 $ ( 277,626 ) $ — $ ( 2,114 ) $ 971,204

Retirement of Treasury Stock

On May 24, 2023, the Company’s Board of Directors approved the retirement of all outstanding shares of treasury stock, which totaled 73,766 shares.

The Company recorded the purchases of treasury stock at cost as a separate component within stockholders’ equity in the Consolidated Balance Sheets.

Upon retirement of treasury stock, the Company allocates the excess of the purchase price over par value to additional paid-in capital, subject to certain limitations.

The components of net changes in stockholders’ equity for the fiscal quarters of 2022 are as follows:

Laureate Education, Inc.

12 unchanged sentences

Balance at March 31, 2022 172,505 $ 921 $ 2,402,072 $ ( 28,688 ) $ ( 470,617 ) $ ( 857,048 ) $ ( 1,752 ) $ 1,044,888

Non-cash share-based compensation — — 2,360 — — — — 2,360

Purchase of treasury stock at cost ( 8,013 ) — — — — ( 93,362 ) — ( 93,362 )

Exercise of stock options and vesting of restricted stock units, net of shares withheld to satisfy tax withholding 171 1 ( 472 ) — — — — ( 471 )

Equitable adjustments to stock-based awards — — ( 35 ) — — — — ( 35 )

Change in noncontrolling interests — — 2 — — — ( 2 ) —

Reclassification of redeemable equity to non-redeemable equity — — 316 — — — — 316

Net income — — — 43,423 — — 136 43,559

Foreign currency translation adjustment, net of tax of $ 0

— — — — 17,969 — 3 17,972

Balance at June 30, 2022 164,663 $ 922 $ 2,404,243 $ 14,735 $ ( 452,648 ) $ ( 950,410 ) $ ( 1,615 ) $ 1,015,227

Share-based Compensation Expense

During the three months ended March 31, 2023 and 2022, the Company recorded share-based compensation expense for restricted stock unit awards of $ 1,124 and $ 2,762 , respectively.

During the six months ended June 30, 2023 and 2022, the Company recorded share-based compensation expense for restricted stock unit awards of $ 3,100 and $ 5,122 , respectively.

Accumulated Other Comprehen sive Income (Loss)

2 unchanged sentences

The components of these balances were as follows:

March 31, 2023 December 31, 2022

June 30, 2023 December 31, 2022

Laureate Education, Inc.

6 unchanged sentences

Laureate's income tax provisions for all periods consist of federal, state and foreign income taxes.

The tax provisions for the three months ended March 31, 2023 and 2022 are based on estimated full-year effective tax rates, adjusted for discrete income tax items related specifically to the interim periods.

The tax provisions for the six months ended June 30, 2023 and 2022 are based on estimated full-year effective tax rates, adjusted for discrete income tax items related specifically to the interim periods.

Laureate has operations in multiple countries at various statutory tax rates and other operations that are loss-making entities for which it is not more likely than not that a tax benefit will be realized on the loss.

For the three months ended March 31, 2023, the Company recognized income t ax expense of $ 10,195 , as compared to $ 47,967 in the prior year period.

Income tax expense for the three months ended March 31, 2023 was attributable to pretax income, the jurisdictional mix of earnings, and pretax losses for which the Company cannot recognize a tax benefit.

In addition, the Company benefited from changes in reserves for uncertain tax positions.

Income tax expense for the three months ended March 31, 2022 was primarily driven by discrete tax expense of approximately $ 32,500 that was recorded for income tax reserves related to the application of the high-tax exception to global intangible low-taxed income.

In addition, income tax expense for the three months ended March 31, 2022 was attributable to pretax income, the jurisdictional mix of earnings and pretax losses for which the Company cannot recognize a tax benefit, and the tax effect of stock options that expired unexercised.

For the six months ended June 30, 2023, the Company recognized income t ax expense of $ 67,663 , as compared to $ 119,933 in the prior year period.

Income tax expense for the six months ended June 30, 2023 was attributable to pretax income, the jurisdictional mix of earnings, and pretax losses for which the Company cannot recognize a tax benefit.

Income tax expense for the six months ended June 30, 2022 was in part driven by discrete tax expense of approximately $ 32,500 that was recorded for income tax reserves related to the application of the high-tax exception to global intangible low-taxed income.

In addition, income tax expense for the six months ended June 30, 2022 was attributable to pretax income, the jurisdictional mix of earnings and pretax losses for which the Company cannot recognize a tax benefit, the tax effect of stock options that expired unexercised, and additional valuation allowance.

Earnings (Loss) Per Share

2 unchanged sentences

To calculate the diluted EPS, the basic weighted average number of shares is increased by the dilutive effect of stock options, restricted stock units, and any other share-based compensation arrangements determined using the treasury stock method.

The following table summarizes the computations of basic and diluted earnings (loss) per share:

For the three months ended March 31, 2023 2022

The following tables summarize the computations of basic and diluted earnings (loss) per share:

For the three months ended June 30, 2023 2022

Numerator used in basic and diluted earnings (loss) per common share for continuing operations:

Loss from continuing operations $ ( 26,748 ) $ ( 45,415 )

Loss attributable to noncontrolling interests 155 469

Net loss from continuing operations for basic and diluted earnings (loss) per share $ ( 26,593 ) $ ( 44,946 )

Income from continuing operations $ 60,350 $ 39,414

Income attributable to noncontrolling interests ( 136 ) ( 136 )

Net income from continuing operations for basic and diluted earnings per share $ 60,214 $ 39,278

Numerator used in basic and diluted earnings (loss) per common share for discontinued operations:

1 unchanged sentence

Denominator used in basic and diluted earnings (loss) per common share:

Basic and diluted weighted average shares outstanding 157,197 177,995

Basic weighted average shares outstanding 157,185 167,119

Dilutive effect of stock options 217 224

Dilutive effect of restricted stock units 182 120

Diluted weighted average shares outstanding 157,584 167,463

Basic earnings (loss) per share:

Income from continuing operations $ 0.38 $ 0.24

(Loss) income from discontinued operations ( 0.03 ) 0.02

Basic earnings per share $ 0.35 $ 0.26

Diluted earnings (loss) per share:

Income from continuing operations $ 0.38 $ 0.23

(Loss) income from discontinued operations ( 0.03 ) 0.02

Diluted earnings per share $ 0.35 $ 0.25

For the six months ended June 30, 2023 2022

Numerator used in basic and diluted earnings (loss) per common share for continuing operations:

Income (loss) from continuing operations $ 33,602 $ ( 6,001 )

Loss attributable to noncontrolling interests 19 333

Net income (loss) from continuing operations for basic and diluted earnings (loss) per share $ 33,621 $ ( 5,668 )

Numerator used in basic and diluted earnings (loss) per common share for discontinued operations:

Net (loss) income from discontinued operations for basic and diluted (loss) earnings per share $ ( 4,051 ) $ 4,880

Denominator used in basic and diluted earnings (loss) per common share:

Basic weighted average shares outstanding 157,191 172,511

Dilutive effect of stock options 210 —

Dilutive effect of restricted stock units 195 —

Diluted weighted average shares outstanding 157,596 172,511

Basic and diluted earnings (loss) per share:

Loss from continuing operations $ ( 0.17 ) $ ( 0.25 )

Income from discontinued operations — —

Basic and diluted loss per share $ ( 0.17 ) $ ( 0.25 )

Income (loss) from continuing operations $ 0.21 $ ( 0.03 )

(Loss) income from discontinued operations ( 0.03 ) 0.03

Basic and diluted earnings per share $ 0.18 $ —

The following table summarizes the number of stock options and restricted stock units that were excluded from the diluted EPS calculations because the effect would have been antidilutive:

For the three months ended March 31, 2023 2022

For the three months ended June 30, For the six months ended June 30,

2023 2022 2023 2022

Stock options — 59 — 1,277

13 unchanged sentences

Reconciliation of Cash and cash equivalents and Restricted cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets, as well as the March 31, 2022 balance.

The March 31, 2023 and March 31, 2022 balances sum to the amounts shown in the Consolidated Statements of Cash Flows for the three months ended March 31, 2023 and 2022:

March 31, 2023 March 31, 2022 December 31, 2022

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets, as well as the June 30, 2022 balance.

The June 30, 2023 and June 30, 2022 balances sum to the amounts shown in the Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022:

June 30, 2023 June 30, 2022 December 31, 2022

Cash and cash equivalents $ 111,650 $ 156,909 $ 85,167

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements