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Item 1. Financial Statements

2024-08-01 compared with 2024-05-02 · 196 added, 84 removed, 363 unchanged (44% of the section changed)

4 unchanged sentences

IN THOUSANDS, except per share amounts

For the three months ended March 31, 2024 2023

For the three months ended June 30, 2024 2023

(Unaudited) (Unaudited)

3 unchanged sentences

General and administrative expenses 13,653 11,960

Loss on impairment of assets — 1,620

Operating income 166,595 154,489

1 unchanged sentence

Interest expense ( 5,129 ) ( 6,137 )

Other income (expense), net 108 ( 129 )

Foreign currency exchange gain (loss), net 27,451 ( 32,357 )

Gain on disposal of subsidiaries, net — 1

Income from continuing operations before income taxes 191,029 117,818

Income tax expense ( 63,072 ) ( 57,468 )

Income from continuing operations 127,957 60,350

Income (loss) from discontinued operations, net of tax of $ 0 for both periods

394 ( 4,037 )

Net income 128,351 56,313

Net income attributable to noncontrolling interests ( 221 ) ( 136 )

Net income attributable to Laureate Education, Inc.

$ 128,130 $ 56,177

Basic and diluted earnings (loss) per share:

Income from continuing operations $ 0.83 $ 0.38

Loss from discontinued operations — ( 0.03 )

Basic and diluted earnings per share $ 0.83 $ 0.35

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, 2024 2023

(Unaudited) (Unaudited)

Revenues $ 774,617 $ 713,322

Costs and expenses:

Direct costs 572,975 519,310

General and administrative expenses 23,918 22,274

Loss on impairment of assets — 1,620

Operating income 177,724 170,118

Interest income 3,915 4,109

Interest expense ( 9,790 ) ( 12,089 )

Other (expense) income, net ( 440 ) 132

Foreign currency exchange loss, net ( 5,607 ) ( 28,952 )

Foreign currency exchange gain (loss), net 21,844 ( 61,309 )

(Loss) gain on disposal of subsidiaries, net ( 3,086 ) 307

Loss from continuing operations before income taxes and equity in net loss of affiliates ( 862 ) ( 16,550 )

Income from continuing operations before income taxes and equity in net loss of affiliates 190,167 101,268

Income tax expense ( 72,994 ) ( 67,663 )

Equity in net loss of affiliates, net of tax ( 7 ) ( 3 )

Loss from continuing operations ( 10,791 ) ( 26,748 )

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

Income from continuing operations 117,166 33,602

Income (loss) from discontinued operations, net of tax of $ 0 for both periods

337 ( 4,051 )

Net loss ( 10,848 ) ( 26,762 )

Net loss attributable to noncontrolling interests 97 155

Net loss attributable to Laureate Education, Inc.

Net income 117,503 29,551

Net (income) loss attributable to noncontrolling interests ( 124 ) 19

Net income attributable to Laureate Education, Inc.

$ 117,379 $ 29,570

Basic and diluted earnings (loss) per share:

Loss from continuing operations $ ( 0.07 ) $ ( 0.17 )

Income from continuing operations $ 0.75 $ 0.21

Loss from discontinued operations — ( 0.03 )

Basic and diluted loss per share $ ( 0.07 ) $ ( 0.17 )

Basic and diluted earnings per share $ 0.75 $ 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, 2024 2023

For the three months ended June 30, 2024 2023

(Unaudited) (Unaudited)

Net loss $ ( 10,848 ) $ ( 26,762 )

Other comprehensive income:

Net income $ 128,351 $ 56,313

Other comprehensive income (loss):

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

( 107,546 ) 91,915

Total other comprehensive income 26,883 72,797

Total other comprehensive (loss) income ( 107,546 ) 91,915

Comprehensive income 20,805 148,228

Net comprehensive loss attributable to noncontrolling interests 97 149

Net comprehensive income attributable to noncontrolling interests ( 221 ) ( 44 )

Comprehensive income attributable to Laureate Education, Inc.

3 unchanged sentences

AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the six months ended June 30, 2024 2023

(Unaudited) (Unaudited)

Net income $ 117,503 $ 29,551

Other comprehensive income (loss):

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

( 80,663 ) 164,712

Total other comprehensive (loss) income ( 80,663 ) 164,712

Comprehensive income 36,840 194,263

Net comprehensive (income) loss attributable to noncontrolling interests ( 124 ) 105

Comprehensive income attributable to Laureate Education, Inc.

$ 36,716 $ 194,368

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

LAUREATE EDUCATION, INC.

AND SUBSIDIARIES

Consolidated Balance Sheets

57 unchanged sentences

Stockholders' equity:

Common stock, par value $ 0.004 per share – 700,000 shares authorized, 155,160 shares issued and outstanding as of March 31, 2024 and 157,586 shares issued and outstanding as of December 31, 2023

Common stock, par value $ 0.004 per share – 700,000 shares authorized, 152,546 shares issued and outstanding as of June 30, 2024 and 157,586 shares issued and outstanding as of December 31, 2023

Additional paid-in capital 1,142,081 1,179,721

10 unchanged sentences

Consolidated Statements of Cash Flows

For the three months ended March 31, 2024 2023

For the six months ended June 30, 2024 2023

Cash flows from operating activities (Unaudited) (Unaudited)

Net loss $ ( 10,848 ) $ ( 26,762 )

Net income $ 117,503 $ 29,551

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

1 unchanged sentence

Amortization of operating lease right-of-use assets 19,736 15,191

Loss on impairment of assets — 1,620

Loss on sales and disposal of subsidiaries and property and equipment, net 2,870 5,698

3 unchanged sentences

Deferred income taxes ( 226 ) ( 6,867 )

Unrealized foreign currency exchange loss 4,964 28,949

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

Unrealized foreign currency exchange (gain) loss ( 23,371 ) 61,264

Other, net ( 9,439 ) ( 8,828 )

9 unchanged sentences

Receipts from sales of property and equipment 3,262 116

Net (payments) receipts from sales of discontinued operations ( 154 ) 250

Net receipts from sales of discontinued operations 771 250

Net cash used in investing activities ( 22,584 ) ( 14,485 )

8 unchanged sentences

Payments of debt issuance costs ( 78 ) —

Net cash provided by financing activities 18,381 21,144

Net cash used in financing activities ( 8,265 ) ( 45,683 )

Effects of exchange rate changes on Cash and cash equivalents and Restricted cash ( 2,963 ) 8,658

33 unchanged sentences

We assess collectability on a portfolio basis prior to recording revenue.

Generally, students cannot re-enroll for the next academic session without satisfactory resolution of any past-due amounts.

If a student withdraws from an institution, Laureate's obligation to issue a refund depends on the refund policy at that institution and the timing of the student's withdrawal.

1 unchanged sentence

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, 2024 and 2023:

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, 2024 and 2023:

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, 2024 and 2023:

Mexico Peru Corporate (1)

Tuition and educational services $ 561,739 $ 345,892 $ — $ 907,631 117 %

Other 80,733 31,745 72 112,550 15 %

Gross revenue 642,472 377,637 72 1,020,181 132 %

Discounts / waivers / scholarships ( 209,809 ) ( 35,755 ) — ( 245,564 ) ( 32 ) %

Total $ 432,663 $ 341,882 $ 72 $ 774,617 100 %

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 %

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

Contract Balances

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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 $ 159,145 and $ 173,571 as of March 31, 2024 and December 31, 2023, respectively.

The decrease in the contract assets balance at March 31, 2024 compared to December 31, 2023 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 $ 206,807 and $ 173,571 as of June 30, 2024 and December 31, 2023, respectively.

The increase in the contract assets balance at June 30, 2024 compared to December 31, 2023 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 $ 121,305 and $ 69,351 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, 2024 and December 31, 2023, respectively.

The increase in the contract liability balance during the period ended March 31, 2024 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 during the three months ended March 31, 2024 that was included in the contract liability balance at the beginning of the year was approximately $ 51,701 .

Contract liabilities in the amount of $ 61,352 and $ 69,351 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, 2024 and December 31, 2023, respectively.

The decrease in the contract liability balance during the period ended June 30, 2024 was the result of revenue recognized during the period, partially offset by semester billings and cash payments received in advance of satisfying performance obligations during that period.

Revenue recognized during the six months ended June 30, 2024 that was included in the contract liability balance at the beginning of the year was approximately $ 56,574 .

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.

During 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 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.

In addition, during 2023, two parcels of land at campuses in Mexico and a parcel of land in the United States met the criteria for classification as held for sale under ASC 360-10-45-9.

In addition, during 2023 and 2024, several parcels of land and buildings at campuses in Mexico and a parcel of land in the United States met the criteria for classification as held for sale under ASC 360-10-45-9.

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

As discussed below, the sale of the parcel of land in the United States was completed during the second quarter of 2024.

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

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

Assets Held for Sale

12 unchanged sentences

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

During the second quarter of 2024, the Company completed the sale of a parcel of land in the United States that was classified as held for sale as of December 31, 2023.

The Company received proceeds of approximately $ 3,100 from the sale and recognized a loss of approximately $ 24 , which is included in Direct costs in the statements of operations.

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 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 the countries in which we compete.

12 unchanged sentences

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 Loss from continuing operations before income taxes and equity in net loss of affiliates, adding back the following items:

(Loss) 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, and Share-based compensation expense.

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 loss of affiliates, adding back the following items:

(Loss) gain on disposal of subsidiaries, net, Foreign currency exchange gain (loss), net, Other income (expense), net, Interest expense, Interest income, Depreciation and amortization expense, Loss on impairment of assets, and Share-based compensation expense.

Adjusted EBITDA is a key measure used by our management and Board of Directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans.

3 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 from continuing operations before income taxes and equity in net loss of affiliates, as reported in the Consolidated Statements of Operations:

For the three months ended March 31, 2024 2023

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 loss of affiliates, as reported in the Consolidated Statements of Operations:

For the three months ended For the six months ended

June 30, June 30,

2024 2023 2024 2023

Mexico $ 218,582 $ 192,135 $ 432,663 $ 374,098

9 unchanged sentences

Depreciation and amortization expense ( 17,440 ) ( 17,317 ) ( 35,490 ) ( 34,038 )

Loss on impairment of assets — ( 1,620 ) — ( 1,620 )

Share-based compensation expense ( 2,887 ) ( 1,975 ) ( 4,296 ) ( 3,100 )

2 unchanged sentences

Interest expense ( 5,129 ) ( 6,137 ) ( 9,790 ) ( 12,089 )

Other (expense) income, net

Foreign currency loss, net

Other income (expense), net

108 ( 129 ) ( 440 ) 132

(Loss) gain on disposal of subsidiaries, net

Foreign currency gain (loss), net

27,451 ( 32,357 ) 21,844 ( 61,309 )

Loss from continuing operations before income taxes and equity in net loss of affiliates

Gain (loss) on disposal of subsidiaries, net

— 1 ( 3,086 ) 307

March 31, 2024 December 31, 2023

Income from continuing operations before income taxes and equity in net loss of affiliates

$ 191,029 $ 117,818 $ 190,167 $ 101,268

June 30, 2024 December 31, 2023

Mexico $ 1,314,169 $ 1,396,605

2 unchanged sentences

Total assets $ 2,061,814 $ 2,125,616

The change in the net carrying amount of Goodwill from December 31, 2023 through March 31, 2024 was composed of the following items:

The change in the net carrying amount of Goodwill from December 31, 2023 through June 30, 2024 was composed of the following items:

Mexico Peru Total

1 unchanged sentence

Currency translation adjustments ( 37,406 ) ( 2,418 ) ( 39,824 )

Balance at March 31, 2024 $ 600,223 $ 72,279 $ 672,502

Balance at June 30, 2024 $ 551,025 $ 70,633 $ 621,658

Outstanding long-term debt was as follows:

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

Senior long-term debt:

11 unchanged sentences

The credit available to be borrowed under the Amended Credit Agreement, whether as revolving loans or term loans, if any, are referred to herein collectively as the “Senior Secured Credit Facility.”

As of March 31, 2024 and December 31, 2023, the Senior Secured Credit Facility had a total outstanding balance of $ 121,000 and $ 59,000 , respectively.

As of June 30, 2024 and December 31, 2023, the Senior Secured Credit Facility had a total outstanding balance of $ 134,000 and $ 59,000 , respectively.

Estimated Fair Value of Debt

As of March 31, 2024 and December 31, 2023, the estimated fair value of our debt approximated its carrying value.

As of June 30, 2024 and December 31, 2023, the estimated fair value of our debt approximated its carrying value.

Certain Covenants

As of March 31, 2024, our Amended Credit Agreement contained certain negative covenants including, among others:

As of June 30, 2024, our Amended Credit Agreement contained certain negative covenants including, among others:

(1) limitations on additional indebtedness;

1 unchanged sentence

(3) limitations on asset sales, including the sale of ownership interests in subsidiaries and sale-leaseback transactions;

and (4) limitations on liens, guarantees, loans or

and (4) limitations on liens, guarantees, loans or investments.

The Amended Credit Agreement also provides, solely with respect to the revolving credit facility, that the Company shall not permit its Consolidated Senior Secured Debt to Consolidated EBITDA ratio, as defined in the Amended Credit Agreement, to exceed 3.00 x as of the last day of each quarter commencing with the quarter ending December 31, 2019 and thereafter.

The agreement also provides that if 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, 2024, more than 25% of the revolving credit facility was utilized, and we were in compliance with the leverage ratio covenant.

As of June 30, 2024, more than 25 % of the revolving credit facility was utilized, and we were in compliance with 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, 2024.

We were in compliance with these covenants as of June 30, 2024.

Commitments and Contingencies

4 unchanged sentences

Income Tax Contingencies

As of March 31, 2024 and December 31, 2023, Laureate had recorded cumulative liabilities for income tax contingencies of $ 137,505 and $ 140,492 , respectively.

As of June 30, 2024 and December 31, 2023, Laureate had recorded cumulative liabilities for income tax contingencies of $ 138,930 and $ 140,492 , respectively.

Non-Income Tax Loss Contingencies

1 unchanged sentence

Laureate intends to vigorously defend against these matters.

As of March 31, 2024 and December 31, 2023, approximately $ 20,100 and $ 19,800 , respectively, of loss contingencies were included in Other long-term liabilities and Other current liabilities on the Consolidated Balance Sheets.

As of June 30, 2024 and December 31, 2023, approximately $ 19,300 and $ 19,800 , 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

In addition, during the fourth quarter of 2023, the same institution issued a bank guarantee in order to appeal a tax assessment received related to the tax audit of 2009.

As of March 31, 2024 and December 31, 2023, the total amount of the guarantees was approximately $ 12,600 and $ 12,700 , respectively.

As of June 30, 2024 and December 31, 2023, the total amount of the guarantees was approximately $ 12,300 and $ 12,700 , respectively.

Stockholders’ Equity

The components of net changes in stockholders’ equity for the three months ended March 31, 2024 are as follows:

The components of net changes in stockholders’ equity for the six months ended June 30, 2024 are as follows:

Laureate Education, Inc.

10 unchanged sentences

Balance at March 31, 2024 155,160 $ 621 $ 1,160,865 $ 17,411 $ ( 245,261 ) $ ( 2,426 ) $ 931,210

Stock Repurchase

On March 5, 2024, the Company entered into a Stock Purchase Agreement with each of ILM Investments Limited Partnership, Torreal Sociedad de Capital Riesgo S.A., Pedro del Corro García-Lomas, a member of Laureate’s Board of Directors, Ana Gómez Cuesta and José Diaz-Rato Revuelta (together, the Sellers), pursuant to which the Company purchased an aggregate of 2,607 shares of our common stock from the Sellers at a purchase price of $ 12.62 per share for an aggregate purchase price of $ 32,894 .

This repurchase, which was approved as a related party transaction by the Audit and Risk Committee of the Company’s Board of Directors, was pursuant to the Company’s existing $ 100,000 stock purchase program that was announced on February 22, 2024 .

Non-cash share-based compensation — — 2,887 — — — 2,887

Purchase and retirement of common stock ( 2,661 ) ( 11 ) ( 21,781 ) ( 17,411 ) — — ( 39,203 )

Exercise of stock options and vesting of restricted stock units, net of shares withheld to satisfy tax withholding 47 — 91 — — — 91

Equitable adjustments to stock-based awards — — 19 — — — 19

Net income — — — 128,130 — 221 128,351

Foreign currency translation adjustment, net of tax of $ 0

— — — — ( 107,546 ) — ( 107,546 )

Balance at June 30, 2024 152,546 $ 610 $ 1,142,081 $ 128,130 $ ( 352,807 ) $ ( 2,205 ) $ 915,809

Stock Repurchases

On March 5, 2024, the Company entered into a stock purchase agreement with each of ILM Investments Limited Partnership, Torreal Sociedad de Capital Riesgo S.A., Pedro del Corro García-Lomas, a member of Laureate’s Board of Directors, Ana Gómez Cuesta and José Diaz-Rato Revuelta (together, the Torreal Sellers), pursuant to which the Company purchased an

aggregate of 2,607 shares of its common stock from the Torreal Sellers at a purchase price of $ 12.62 per share for an aggregate purchase price of $ 32,894 .

On May 6, 2024, the Company entered into a stock purchase agreement with each of Snow Phipps Group, LLC, Snow Phipps Group, L.P., Snow Phipps Group (B), L.P., Snow Phipps Group (Offshore), L.P., Snow Phipps Group (RPV), L.P.

and SPG Co-Investment, L.P.

(together, the Snow Phipps Sellers), pursuant to which the Company purchased an aggregate of 2,115 shares of its common stock from the Snow Phipps Sellers at a purchase price of $ 14.64 per share for an aggregate purchase price of $ 30,958 .

During June 2024, the Company repurchased 546 shares of its common stock on the open market at prevailing market prices pursuant to a Rule 10b5-1 stock repurchase plan, in accordance with applicable rules and regulations promulgated under the Securities Exchange Act of 1934, as amended (the Exchange Act).

The above repurchases were pursuant to the Company’s existing $ 100,000 stock purchase program that was announced on February 22, 2024 .

Under this stock repurchase program, all shares repurchased are immediately retired.

Upon retirement of repurchased stock, the excess of the purchase price plus excise tax over par value is allocated to additional paid-in capital, subject to certain limitations.

Any remainder is allocated to retained earnings.

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

Any remainder is allocated to retained earnings to the extent that positive retained earnings exist.

The components of net changes in stockholders’ equity for the six months ended June 30, 2023 are as follows:

Laureate Education, Inc.

11 unchanged sentences

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

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

Share-based Compensation Expense

During the three months ended March 31, 2024 and 2023, the Company recorded share-based compensation expense for restricted stock unit awards of $ 1,409 and $ 1,124 , respectively.

During the six months ended June 30, 2024 and 2023, the Company recorded share-based compensation expense for restricted stock unit awards of $ 4,296 and $ 3,100 , respectively.

Accumulated Other Comprehen sive Income (Loss)

2 unchanged sentences

The components of these balances were as follows:

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

Laureate Education, Inc.

5 unchanged sentences

Accumulated other comprehensive loss $ ( 352,807 ) $ 962 $ ( 351,845 ) $ ( 272,144 ) $ 962 $ ( 271,182 )

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, 2024 and 2023 are based on estimated full-year effective tax rates, adjusted for discrete income tax items related specifically to the interim periods.

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

The tax provisions for the six months ended June 30, 2024 and 2023 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, 2024, the Company recognized income t ax expense of $ 9,922 , as compared to $ 10,195 in the prior year period.

Income tax expense for the three months ended March 31, 2024 and 2023 was attributable to pretax income, the jurisdictional mix of earnings, and pretax losses for which the Company cannot recognize a tax benefit.

For the six months ended June 30, 2024, the Company recognized income t ax expense of $ 72,994 , as compared to $ 67,663 in the prior year period.

Income tax expense for the six months ended June 30, 2024 and 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 provisions in both periods.

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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, 2024 2023

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

For the three months ended June 30, 2024 2023

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

Loss from continuing operations $ ( 10,791 ) $ ( 26,748 )

Loss attributable to noncontrolling interests 97 155

Net loss from continuing operations for basic and diluted loss per share $ ( 10,694 ) $ ( 26,593 )

Income from continuing operations $ 127,957 $ 60,350

Income attributable to noncontrolling interests ( 221 ) ( 136 )

Net income from continuing operations for basic and diluted earnings per share $ 127,736 $ 60,214

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

Net loss from discontinued operations for basic and diluted loss per share $ ( 57 ) $ ( 14 )

Net income (loss) from discontinued operations for basic and diluted earnings (loss) per share $ 394 $ ( 4,037 )

Denominator used in basic and diluted earnings per common share:

Basic weighted average shares outstanding 153,847 157,185

Dilutive effect of stock options 219 217

Dilutive effect of restricted stock units 284 182

Diluted weighted average shares outstanding 154,350 157,584

Basic and diluted earnings (loss) per share:

Income from continuing operations $ 0.83 $ 0.38

Loss from discontinued operations — ( 0.03 )

Basic and diluted earnings per share $ 0.83 $ 0.35

For the six months ended June 30, 2024 2023

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

Income from continuing operations $ 117,166 $ 33,602

(Income) loss attributable to noncontrolling interests ( 124 ) 19

Net income from continuing operations for basic and diluted earnings per share $ 117,042 $ 33,621

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

Net income (loss) from discontinued operations for basic and diluted earnings (loss) per share $ 337 $ ( 4,051 )

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

Basic and diluted weighted average shares outstanding 157,011 157,197

Basic weighted average shares outstanding 155,432 157,191

Dilutive effect of stock options 211 210

Dilutive effect of restricted stock units 307 195

Diluted weighted average shares outstanding 155,950 157,596

Basic and diluted earnings (loss) per share:

Loss from continuing operations $ ( 0.07 ) $ ( 0.17 )

Income from continuing operations $ 0.75 $ 0.21

Loss from discontinued operations — ( 0.03 )

Basic and diluted loss per share $ ( 0.07 ) $ ( 0.17 )

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, 2024 2023

Stock options 359 551

Basic and diluted earnings per share $ 0.75 $ 0.18

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

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

2024 2023 2024 2023

Restricted stock units 125 107 63 101

Related Party Transactions

Stock Repurchase

As discussed in Note 8, Stockholders’ Equity, on March 5, 2024 , the Company entered into a Stock Purchase Agreement with the Sellers pursuant to which the Company purchased an aggregate of 2,607 shares of our common stock from the Sellers at a purchase price of $ 12.62 per share for an aggregate purchase price of $ 32,894 .

This repurchase, which was approved as a related party transaction by the Audit and Risk Committee of the Company’s Board of Directors, was pursuant to the Company’s existing $ 100,000 share repurchase program that was announced on February 22, 2024 .

Stock Repurchases

As discussed in Note 8, Stockholders’ Equity, on March 5, 2024 , the Company entered into a stock purchase agreement with the Torreal Sellers pursuant to which the Company purchased an aggregate of 2,607 shares of its common stock from the Torreal Sellers at a purchase price of $ 12.62 per share for an aggregate purchase price of $ 32,894 .

Additionally, on May 6, 2024, the Company entered into a stock purchase agreement with the Snow Phipps Sellers pursuant to which the Company purchased an aggregate of 2,115 shares of its common stock from the Snow Phipps Sellers at a purchase price of $ 14.64 per share for an aggregate purchase price of $ 30,958 .

These repurchases, which were approved as related party transactions by the Audit and Risk Committee of the Company’s Board of Directors, were pursuant to the Company’s existing $ 100,000 share repurchase program that was announced on February 22, 2024 .

Legal and Regulatory Matters

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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, 2023 balance.

The March 31, 2024 and March 31, 2023 balances sum to the amounts shown in the Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023:

March 31, 2024 March 31, 2023 December 31, 2023

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, 2023 balance.

The June 30, 2024 and June 30, 2023 balances sum to the amounts shown in the Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023:

June 30, 2024 June 30, 2023 December 31, 2023

Cash and cash equivalents $ 128,838 $ 111,650 $ 89,392

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