Q2 2024 Laureate Education Inc Earnings Call Transcript
Key Points
- Laureate Education Inc (LAUR) reported solid operating performance for the second quarter, remaining on track to deliver on 2024 commitments on a constant currency basis.
- The company has a strong balance sheet and significant cash flow generation, supporting continued emphasis on returning capital to shareholders.
- Mexico continues to present a compelling growth story with robust manufacturing and construction sectors, higher minimum wages, record low unemployment, and increased consumer spending.
- Laureate Education Inc (LAUR) repurchased over $72 million worth of shares in the first six months of the year.
- The company is well-positioned in the private higher education markets of Mexico and Peru, which are considered attractive due to expanding middle classes and rising participation rates in higher education.
- The recent weakening of the Mexican peso has caused a slight downward adjustment to the company's outlook on a spot FX basis.
- Peru's economic downturn in 2023 had lingering effects into the first half of 2024, leading to relatively flat primary enrollment intake volumes.
- Enhanced discounts and scholarships provided to students in Peru during the economic recovery period resulted in essentially flat year-over-year pricing for the first half of the year.
- Higher levels of bad debt provisioning in Peru due to softer macroeconomic conditions impacted adjusted EBITDA negatively.
- The company anticipates some possible foreign exchange volatility during the transition period of the new Mexican administration.
Good day and thank you for standing by. Welcome to the 2024 second quarter Laureate Education earnings call. (Operator Instructions) Please be advised that today's conference is being recorded. I hand the conference over to your first speaker today, Adam Moore, Senior Vice President of Corporate Finance. Please go ahead.
Good morning, and thank you for joining us on today's call to discuss Laureate Education's second-quarter 2024 results. Joining me on the call today are Eilif Serck-Hanssen, President and Chief Executive Officer; and Rick Buskirk, Chief Financial Officer. Earnings press release is available on the Investor Relations section of our website at laureate.net. We've 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.
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