NASDAQ:LAUR Laureate Education Q3 2023 Earnings Report $20.36 +0.62 (+3.14%) Closing price 04/29/2025 04:00 PM EasternExtended Trading$19.90 -0.45 (-2.23%) As of 04:32 AM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings HistoryForecast Laureate Education EPS ResultsActual EPS$0.23Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/ALaureate Education Revenue ResultsActual Revenue$361.50 millionExpected Revenue$363.14 millionBeat/MissMissed by -$1.64 millionYoY Revenue GrowthN/ALaureate Education Announcement DetailsQuarterQ3 2023Date11/2/2023TimeN/AConference Call DateThursday, November 2, 2023Conference Call Time8:30AM ETUpcoming EarningsLaureate Education's Q1 2025 earnings is scheduled for Thursday, May 1, 2025, with a conference call scheduled at 8:30 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Q1 2025 Earnings ReportConference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Laureate Education Q3 2023 Earnings Call TranscriptProvided by QuartrNovember 2, 2023 ShareLink copied to clipboard.There are 4 speakers on the call. Operator00:00:00Good day and thank you for standing by. Welcome to the Third Quarter 2023 Laureate Education, Inc. Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer Advising your hand is raised. Operator00:00:32Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Adam Morse, Senior Vice President, Finance. Please go ahead. Speaker 100:00:49Good morning and thank you for joining us on today's call to discuss Laureate Education's Q3 2023 results. Joining me on the call today are Alex Serkantzen, President and Chief Executive Officer and Rick Buskirk, Chief Financial Officer. Our earnings press release is available on the Investor Relations section of our website at laureate.net. We have also posted a supplementary presentation to the website, which we will be referring to during today's call. The call is being webcast and a complete recording will be available after the call. Speaker 200:01:25I'd like Speaker 100:01:25to remind you that some of the information we are providing today, Including, but not limited to, our financial and operational guidance constitutes forward looking statements within the meaning of applicable U. S. Securities laws. Forward looking statements are subject to risks and uncertainties that may change at any time and therefore our actual results may differ materially from those we expected. Important factors that could cause actual results to differ materially from our expectations are disclosed in our annual report on Form 10 ks filed with the U. Speaker 100:02:00S. Securities and Exchange Commission, our 10 Q filed earlier this morning, as well as other filings made with the SEC. In addition, All forward looking statements are based on current expectations as of the day of this conference call and we undertake no obligation to update any forward looking statements. Additionally, non GAAP measures that we discuss, including among others, adjusted EBITDA and its related margin, Total debt, net of cash and free cash flow are also detailed and reconciled to their GAAP counterparts and our press release or supplementary presentation. Let me now turn the call over to Eilif. Speaker 300:02:43Thank you, Adam, and good morning, everyone. Today, we are pleased to report strong financial performance for the Q3, along with the results from the recently completed primary enrollment intake for Mexico and the smaller secondary intake for Peru. 3rd quarter revenue was $362,000,000 and adjusted EBITDA was $78,000,000 Both metrics were in line with the guidance range we provided during the 2nd quarter earnings call. For Mexico's primary enrollment intake, new enrollments grew 4%, and that's on top of the 17% increase we achieved during the prior year's intake, which benefited somewhat from the COVID recovery volumes. We are very pleased with the enrollment performance in Mexico and the momentum we are experiencing in that market. Speaker 300:03:40We are seeing strong performance across both brands as well as our face to face and fully online delivery mode. Over the past 2 years, new enrollment in Mexico has increased over 20% during the primary intake. For Peru's smaller secondary intake, new enrollments increased 2% as compared to prior year. As a reminder, Pru's primary intake occurred earlier this year in March and their next large enrollment cycle will take place during the Q1 of 2024. In Mexico, we are experiencing favorable macroeconomic trends. Speaker 300:04:24This year's GDP growth has been upward revised by the IMF to 3.2%, a notable improvement from the initial expectations at the beginning of the year. And this increased growth has been driven really by 2 factors. 1st and foremost, increased private consumption and secondly, from early investments relating to the near shoring trends. The nearshoring opportunity has contributed to over 40% year to date growth in direct foreign investment into Mexico. And Mexico has now overtaken China as the largest trading partner of the United States. Speaker 300:05:06We believe that higher education will be a sector that benefits from near shoring as employers in Mexico will require Reskilling and Upskilling of the Labor Force. And we believe that Laureate is well positioned to capitalize on this opportunity. Specifically, We are the largest private operator of higher education in Mexico with an extensive suite of STEM and Business degree program offerings as well as a large portfolio of short courses. Further, inflationary pressures have subsided in Mexico. The inflation rate is now nearly half of what it was last year, dropping from a high of 8.7% in September of 2022 to the current rate of approximately 4.5%, marking 8 consecutive months of declining inflation. Speaker 300:06:07Overall, we are very positive on the operating environment in Mexico and our business is performing very well. Peru's economic landscape currently reflects a more subdued environment compared to Mexico. It is now anticipated that Peru's GDP for 2023 will experience a slight contraction impacted by a series of events, including political disruptions And severe weather. This has led to some pressure on the consumer with families and students taking a cautious approach to spending. During the recent secondary intake, we did observe an increase in students pausing their studies. Speaker 300:06:49But overall, families and students continue to prioritize educational spending due to the strong economic incentives from having a university degree. In Peru, like Mexico, inflation has improved, falling for 8 consecutive months to 5% in September. While this is a positive trend, The inflation rate remains above the 3% stated target level. Most economists all predicting a return to positive GDP growth in 2024. Despite the challenges In the Peruvian markets throughout 2023, our business model has performed well with continued growth in enrollments and revenues. Speaker 300:07:39This resiliency underscore the strength of our brands and product offerings in Peru. The completion of the Q3 intakes in Mexico and Peru give us high visibility for the balance of the year. We are pleased to reaffirm our constant currency revenue and adjusted EBITDA outlook for the full year 2023 within the previously guided range. Later in our prepared remarks, Rick will provide More details on the updated guidance, including the impact from foreign currency rates, which have weakened a bit in the past few months. We are also pleased to announce today a special cash dividend of $0.70 per share or approximately $110,000,000 to be paid on November 30. Speaker 300:08:36Having just completed the enrollment intake And our seasonally high cash flow 3rd quarter, we are well positioned to continue our track record of returning capital to our shareholders, a priority for our organization. That concludes my prepared remarks. Over to you, Rick, for the financial overview of the quarter and full year 2023 outlook. Speaker 200:09:01Thank you, Eilif. As a reminder, campus based higher education is a seasonal business. Although the Q3 is a large intake period, From a P and L perspective, it is seasonally low as classes are out of session for much of the quarter. Let's start with Pages 1011, which highlight our operating and financial performance for the Q3 year to date. New enrollments and total enrollments were both up 6% And when combined with year to date volume performance is covering our implied cost of inflation as anticipated. Speaker 200:09:46During the recent intake, we did experience a positive mix impact on average revenue per student versus expectation, primarily driven by Mexico. Revenue in the 3rd quarter was $362,000,000 and adjusted EBITDA was $78,000,000 On an organic constant currency basis, Revenue for the Q3 increased 8% year over year. Adjusted EBITDA declined slightly year over year and was in line with the guidance range we provided for the quarter's performance. The decrease was attributable to the shifting of expenses from the first half of the year as discussed on our prior call and additional costs related to lease exits as we continue to focus on optimization When combined with the first half and still on an organic constant currency basis, Our overall performance for the 9 months ended in 2023 resulted in revenue growth of 11% and adjusted EBITDA increase of 10%. Let me now provide some additional color on the performance to Colette Peru, starting with Page 13. Speaker 200:11:04Please note that all comparisons versus prior year are on an organic and constant currency basis. Let's start with Mexico. We are very pleased with Mexico's primary intake performance. As a reminder, Mexico grew new enrollment 17% in last year's primary intake. We signaled in our previous calls That this would create a hard comparison in the second half of this year, but that we still expected to deliver year over year growth during the intake. Speaker 200:11:35That growth came in as new enrollments increased 4% timing adjusted. As Eilif noted, over the Past 2 years, new enrollments have increased 21% in Maxico during its primary intake, driven by double digit growth in both our premium and value brands and across both our face to face and fully online offerings. For the Q3, Mexico's revenue grew 6% versus the prior year. Adjusted EBITDA declined $5,000,000 As expected, due to shifting of expenses referred to earlier and lease exit costs. On a year to date basis, revenue growth of 13% was driven by a 10% increase in average total enrollment and 3% appraisemix. Speaker 200:12:25Adjusted EBITDA increased 19% year to date versus the prior year period, driven by revenue flow through and productivity gains, partially offset by return to campus expenses. We believe that our strategy to expand margins in Mexico to above 25% in the next couple of years is well underway. Let's now transition to Peru on Slide 14. During the smaller intake cycle just completed, new enrollments in Peru increased 2% versus the prior year period and total enrollments grew 4%. As Eilif noted in his opening remarks, Peru is currently experiencing some pressure on the consumer. Speaker 200:13:09Accordingly, we did experience higher attrition during the recently completed secondary intake. The impact was felt across the entire sector. Despite the macroeconomic conditions, we are still delivering strong top line growth due to a solid primary intake earlier in the year and disciplined pricing approach. For the Q3, Peru's revenue growth was up 10%. Adjusted EBITDA increased 3%, reflecting the expected impact of return to campus expenses and additional investments in our health science and digital offerings. Speaker 200:13:47On a year to date basis, revenue growth of 10% was driven by 6% increase in average total enrollments and a 4% increase of price mix. Adjusted EBITDA was up 1% versus Let me now briefly discuss our balance sheet position. Laureate ended September with $131,000,000 in cash and $135,000,000 in gross debt for a net debt position of only $4,000,000 During the quarter, we refinanced our corporate revolver, extending its maturity through September 2028 while reducing the size of the commitment to be more appropriate for what is needed for our organization post transformation. Key terms under the revolver including pricing were largely unchanged. Our strong balance sheet and extended revolver maturity supported our Board's decision to declare the special cash dividend of $0.70 per share today. Speaker 200:15:07Moving on to our updated outlook for 2023 starting on Page 15. We are maintaining revenue and adjusted EBITDA expectations for the full year on a constant currency basis within the previously guided range. However, we have narrowed the range given only the Q4 remains in the year. On the foreign currency component, Though still very favorable for the year, FX rates have declined since the time of our 2nd quarter earnings call. As a result, we are reducing the full year FX benefit to reflect current spot rates. Speaker 200:15:45As a reminder, We consistently provide guidance on a spot FX rate basis. During the recent intake, we did experience a positive price and mix impact, but that was offset by higher attrition rates in Peru related to the macroeconomic softness in that market. As a result, we now expect Total enrollment volume closer to the low end of our previous range. Based on current spot FX rates, We now expect full year 2023 results to be as follows. Total enrollments to be approximately 447,000 students, reflecting growth of approximately 6% versus 2022. Speaker 200:16:28Revenue to now be in the range of 1,457,000,000 to $1,465,000,000 reflecting growth of 17% to 18% on an as reported basis and 10% on an organic constant currency basis versus 2022. Adjusted EBITDA to now be in the range of $410,000,000 to $416,000,000 reflecting growth of 21% to 23% on an as reported basis and 14% to 16% on an organic constant currency basis versus 2022. Now moving to the Q4 guidance. For the Q4 of 2023, we expect revenue to be in the range of $382,000,000 to $390,000,000 Adjusted EBITDA to be in the range of $123,000,000 to $129,000,000 with strong margin expansion expected during the 4th quarter. That concludes my prepared remarks. Speaker 200:17:31Eilif, I'm handing it back to you for closing comments. Speaker 300:17:34Thank you, Rick. We are on track to deliver on our commitment for 2023 with strong top end growth, continued margin expansion and improved free cash flow. The financial results we have reported for the 1st 9 months of this year demonstrates the resiliency of Laureate's business model and the strength of our local brands. Operator, that concludes our Operator00:18:38I'm showing no questions at this time. This concludes today's conference call. Thank you for participating and you may now disconnect.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallLaureate Education Q3 202300:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress Release(8-K)Quarterly report(10-Q) Laureate Education Earnings HeadlinesWhat To Expect From Laureate Education’s (LAUR) Q1 EarningsApril 30 at 6:13 AM | msn.comDeputy Bureau Chief, Media, The Wall Street JournalApril 24, 2025 | wsj.comURGENT: This Altcoin Opportunity Won’t Wait – Act NowThe July 23rd Crypto Trigger Could Mark the Beginning of Bitcoin’s Next Big Move Bitcoin’s early 2024 ETF rally made headlines—but according to veteran crypto strategist Joel Peterson, the real wave of opportunity is about to start… and it hinges on one little-known event scheduled to take place on July 23rd.April 30, 2025 | Crypto Swap Profits (Ad)6LAUR : Price Over Earnings Overview: Laureate EducationApril 24, 2025 | benzinga.comLaureate Education: An Impressive Turnaround Story But Price Doesn't Compensate For The Risk Associated With ItApril 22, 2025 | seekingalpha.comLaureate Education soars 47% following InvestingPro’s Fair Value analysisApril 18, 2025 | uk.investing.comSee More Laureate Education Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Laureate Education? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Laureate Education and other key companies, straight to your email. Email Address About Laureate EducationLaureate Education (NASDAQ:LAUR), together with its subsidiaries, offers higher education programs and services to students through a network of universities and higher education institutions. The company provides a range of undergraduate and graduate degree programs in the areas of business and management, medicine and health sciences, and engineering and information technology through campus-based, online, and hybrid programs. It also offers specialized courses for technical and vocational training; and senior high school. Its services are provides in Mexico, Peru, and the United States. The company was formerly known as Sylvan Learning Systems, Inc. and changed its name to Laureate Education, Inc. in May 2004. 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There are 4 speakers on the call. Operator00:00:00Good day and thank you for standing by. Welcome to the Third Quarter 2023 Laureate Education, Inc. Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer Advising your hand is raised. Operator00:00:32Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Adam Morse, Senior Vice President, Finance. Please go ahead. Speaker 100:00:49Good morning and thank you for joining us on today's call to discuss Laureate Education's Q3 2023 results. Joining me on the call today are Alex Serkantzen, President and Chief Executive Officer and Rick Buskirk, Chief Financial Officer. Our earnings press release is available on the Investor Relations section of our website at laureate.net. We have also posted a supplementary presentation to the website, which we will be referring to during today's call. The call is being webcast and a complete recording will be available after the call. Speaker 200:01:25I'd like Speaker 100:01:25to remind you that some of the information we are providing today, Including, but not limited to, our financial and operational guidance constitutes forward looking statements within the meaning of applicable U. S. Securities laws. Forward looking statements are subject to risks and uncertainties that may change at any time and therefore our actual results may differ materially from those we expected. Important factors that could cause actual results to differ materially from our expectations are disclosed in our annual report on Form 10 ks filed with the U. Speaker 100:02:00S. Securities and Exchange Commission, our 10 Q filed earlier this morning, as well as other filings made with the SEC. In addition, All forward looking statements are based on current expectations as of the day of this conference call and we undertake no obligation to update any forward looking statements. Additionally, non GAAP measures that we discuss, including among others, adjusted EBITDA and its related margin, Total debt, net of cash and free cash flow are also detailed and reconciled to their GAAP counterparts and our press release or supplementary presentation. Let me now turn the call over to Eilif. Speaker 300:02:43Thank you, Adam, and good morning, everyone. Today, we are pleased to report strong financial performance for the Q3, along with the results from the recently completed primary enrollment intake for Mexico and the smaller secondary intake for Peru. 3rd quarter revenue was $362,000,000 and adjusted EBITDA was $78,000,000 Both metrics were in line with the guidance range we provided during the 2nd quarter earnings call. For Mexico's primary enrollment intake, new enrollments grew 4%, and that's on top of the 17% increase we achieved during the prior year's intake, which benefited somewhat from the COVID recovery volumes. We are very pleased with the enrollment performance in Mexico and the momentum we are experiencing in that market. Speaker 300:03:40We are seeing strong performance across both brands as well as our face to face and fully online delivery mode. Over the past 2 years, new enrollment in Mexico has increased over 20% during the primary intake. For Peru's smaller secondary intake, new enrollments increased 2% as compared to prior year. As a reminder, Pru's primary intake occurred earlier this year in March and their next large enrollment cycle will take place during the Q1 of 2024. In Mexico, we are experiencing favorable macroeconomic trends. Speaker 300:04:24This year's GDP growth has been upward revised by the IMF to 3.2%, a notable improvement from the initial expectations at the beginning of the year. And this increased growth has been driven really by 2 factors. 1st and foremost, increased private consumption and secondly, from early investments relating to the near shoring trends. The nearshoring opportunity has contributed to over 40% year to date growth in direct foreign investment into Mexico. And Mexico has now overtaken China as the largest trading partner of the United States. Speaker 300:05:06We believe that higher education will be a sector that benefits from near shoring as employers in Mexico will require Reskilling and Upskilling of the Labor Force. And we believe that Laureate is well positioned to capitalize on this opportunity. Specifically, We are the largest private operator of higher education in Mexico with an extensive suite of STEM and Business degree program offerings as well as a large portfolio of short courses. Further, inflationary pressures have subsided in Mexico. The inflation rate is now nearly half of what it was last year, dropping from a high of 8.7% in September of 2022 to the current rate of approximately 4.5%, marking 8 consecutive months of declining inflation. Speaker 300:06:07Overall, we are very positive on the operating environment in Mexico and our business is performing very well. Peru's economic landscape currently reflects a more subdued environment compared to Mexico. It is now anticipated that Peru's GDP for 2023 will experience a slight contraction impacted by a series of events, including political disruptions And severe weather. This has led to some pressure on the consumer with families and students taking a cautious approach to spending. During the recent secondary intake, we did observe an increase in students pausing their studies. Speaker 300:06:49But overall, families and students continue to prioritize educational spending due to the strong economic incentives from having a university degree. In Peru, like Mexico, inflation has improved, falling for 8 consecutive months to 5% in September. While this is a positive trend, The inflation rate remains above the 3% stated target level. Most economists all predicting a return to positive GDP growth in 2024. Despite the challenges In the Peruvian markets throughout 2023, our business model has performed well with continued growth in enrollments and revenues. Speaker 300:07:39This resiliency underscore the strength of our brands and product offerings in Peru. The completion of the Q3 intakes in Mexico and Peru give us high visibility for the balance of the year. We are pleased to reaffirm our constant currency revenue and adjusted EBITDA outlook for the full year 2023 within the previously guided range. Later in our prepared remarks, Rick will provide More details on the updated guidance, including the impact from foreign currency rates, which have weakened a bit in the past few months. We are also pleased to announce today a special cash dividend of $0.70 per share or approximately $110,000,000 to be paid on November 30. Speaker 300:08:36Having just completed the enrollment intake And our seasonally high cash flow 3rd quarter, we are well positioned to continue our track record of returning capital to our shareholders, a priority for our organization. That concludes my prepared remarks. Over to you, Rick, for the financial overview of the quarter and full year 2023 outlook. Speaker 200:09:01Thank you, Eilif. As a reminder, campus based higher education is a seasonal business. Although the Q3 is a large intake period, From a P and L perspective, it is seasonally low as classes are out of session for much of the quarter. Let's start with Pages 1011, which highlight our operating and financial performance for the Q3 year to date. New enrollments and total enrollments were both up 6% And when combined with year to date volume performance is covering our implied cost of inflation as anticipated. Speaker 200:09:46During the recent intake, we did experience a positive mix impact on average revenue per student versus expectation, primarily driven by Mexico. Revenue in the 3rd quarter was $362,000,000 and adjusted EBITDA was $78,000,000 On an organic constant currency basis, Revenue for the Q3 increased 8% year over year. Adjusted EBITDA declined slightly year over year and was in line with the guidance range we provided for the quarter's performance. The decrease was attributable to the shifting of expenses from the first half of the year as discussed on our prior call and additional costs related to lease exits as we continue to focus on optimization When combined with the first half and still on an organic constant currency basis, Our overall performance for the 9 months ended in 2023 resulted in revenue growth of 11% and adjusted EBITDA increase of 10%. Let me now provide some additional color on the performance to Colette Peru, starting with Page 13. Speaker 200:11:04Please note that all comparisons versus prior year are on an organic and constant currency basis. Let's start with Mexico. We are very pleased with Mexico's primary intake performance. As a reminder, Mexico grew new enrollment 17% in last year's primary intake. We signaled in our previous calls That this would create a hard comparison in the second half of this year, but that we still expected to deliver year over year growth during the intake. Speaker 200:11:35That growth came in as new enrollments increased 4% timing adjusted. As Eilif noted, over the Past 2 years, new enrollments have increased 21% in Maxico during its primary intake, driven by double digit growth in both our premium and value brands and across both our face to face and fully online offerings. For the Q3, Mexico's revenue grew 6% versus the prior year. Adjusted EBITDA declined $5,000,000 As expected, due to shifting of expenses referred to earlier and lease exit costs. On a year to date basis, revenue growth of 13% was driven by a 10% increase in average total enrollment and 3% appraisemix. Speaker 200:12:25Adjusted EBITDA increased 19% year to date versus the prior year period, driven by revenue flow through and productivity gains, partially offset by return to campus expenses. We believe that our strategy to expand margins in Mexico to above 25% in the next couple of years is well underway. Let's now transition to Peru on Slide 14. During the smaller intake cycle just completed, new enrollments in Peru increased 2% versus the prior year period and total enrollments grew 4%. As Eilif noted in his opening remarks, Peru is currently experiencing some pressure on the consumer. Speaker 200:13:09Accordingly, we did experience higher attrition during the recently completed secondary intake. The impact was felt across the entire sector. Despite the macroeconomic conditions, we are still delivering strong top line growth due to a solid primary intake earlier in the year and disciplined pricing approach. For the Q3, Peru's revenue growth was up 10%. Adjusted EBITDA increased 3%, reflecting the expected impact of return to campus expenses and additional investments in our health science and digital offerings. Speaker 200:13:47On a year to date basis, revenue growth of 10% was driven by 6% increase in average total enrollments and a 4% increase of price mix. Adjusted EBITDA was up 1% versus Let me now briefly discuss our balance sheet position. Laureate ended September with $131,000,000 in cash and $135,000,000 in gross debt for a net debt position of only $4,000,000 During the quarter, we refinanced our corporate revolver, extending its maturity through September 2028 while reducing the size of the commitment to be more appropriate for what is needed for our organization post transformation. Key terms under the revolver including pricing were largely unchanged. Our strong balance sheet and extended revolver maturity supported our Board's decision to declare the special cash dividend of $0.70 per share today. Speaker 200:15:07Moving on to our updated outlook for 2023 starting on Page 15. We are maintaining revenue and adjusted EBITDA expectations for the full year on a constant currency basis within the previously guided range. However, we have narrowed the range given only the Q4 remains in the year. On the foreign currency component, Though still very favorable for the year, FX rates have declined since the time of our 2nd quarter earnings call. As a result, we are reducing the full year FX benefit to reflect current spot rates. Speaker 200:15:45As a reminder, We consistently provide guidance on a spot FX rate basis. During the recent intake, we did experience a positive price and mix impact, but that was offset by higher attrition rates in Peru related to the macroeconomic softness in that market. As a result, we now expect Total enrollment volume closer to the low end of our previous range. Based on current spot FX rates, We now expect full year 2023 results to be as follows. Total enrollments to be approximately 447,000 students, reflecting growth of approximately 6% versus 2022. Speaker 200:16:28Revenue to now be in the range of 1,457,000,000 to $1,465,000,000 reflecting growth of 17% to 18% on an as reported basis and 10% on an organic constant currency basis versus 2022. Adjusted EBITDA to now be in the range of $410,000,000 to $416,000,000 reflecting growth of 21% to 23% on an as reported basis and 14% to 16% on an organic constant currency basis versus 2022. Now moving to the Q4 guidance. For the Q4 of 2023, we expect revenue to be in the range of $382,000,000 to $390,000,000 Adjusted EBITDA to be in the range of $123,000,000 to $129,000,000 with strong margin expansion expected during the 4th quarter. That concludes my prepared remarks. Speaker 200:17:31Eilif, I'm handing it back to you for closing comments. Speaker 300:17:34Thank you, Rick. We are on track to deliver on our commitment for 2023 with strong top end growth, continued margin expansion and improved free cash flow. The financial results we have reported for the 1st 9 months of this year demonstrates the resiliency of Laureate's business model and the strength of our local brands. Operator, that concludes our Operator00:18:38I'm showing no questions at this time. This concludes today's conference call. Thank you for participating and you may now disconnect.Read morePowered by