Laureate Education, Inc. reports recurring developments from its higher education business in Mexico and Peru, where it operates five institutions. Company news centers on quarterly and annual results, new and total enrollment trends, revenue on reported and constant-currency bases, operating income, Adjusted EBITDA, and guidance updates.
Updates also cover factors that affect period-to-period performance, including academic calendar timing, foreign currency movements, campus expansion and new campus investments. Laureate news may also include capital allocation actions such as share repurchase authorizations and commentary on fully online offerings in Peru and operating performance in Mexico.
Laureate Education, Inc. (NASDAQ: LAUR) has appointed Rick Buskirk as Senior Vice President and Chief Financial Officer, effective April 1, 2021. He succeeds Jean-Jacques Charhon, who has resigned. Buskirk has been with Laureate since 2015 and previously led financial planning and analysis, managing over $5 billion in divestiture transactions. Eilif Serck-Hanssen, CEO, emphasized Buskirk's role in Laureate's strategic reviews as the company shifts focus to operations in Mexico and Peru. Charhon is acknowledged for his contributions during the company's transformation.
Walden University and the National League for Nursing (NLN) announced the launch of the Institute for Social Determinants of Health and Social Change. This initiative, part of a five-year commitment, aims to enhance the professional development of nurse educators. Key objectives include fostering leadership, integrating social determinants of health into curricula, and promoting research. The inaugural program, the Interprofessional Leadership Academy for Social Change, will train health professionals to address health inequities. The institute will culminate in a conference showcasing its achievements.
On March 8, 2021, Laureate Education (NASDAQ: LAUR) announced the successful divestiture of its operations in Honduras to Fundación Nasser. This transfer includes Fundaempresa, which oversees Universidad Tecnológica Centroamericana (UNITEC) and Centro Universitario Tecnológico (CEUTEC). Fundación Nasser has over 20 years of experience in educational and social development in the region. Laureate's CEO, Eilif Serck-Hanssen, expressed pride in the company’s contributions to higher education in Honduras, emphasizing the importance of accessibility and social mobility.
Laureate Education reported Q4 2020 results with revenues decreasing 19% to $285.2 million compared to Q4 2019. Operating income fell by 36% to $36.9 million. Notably, net income for Q4 2020 was $379 million, boosted by a gain from discontinued operations. For the full year, total revenue decreased 15% to $1,024.9 million, affected by currency fluctuations and the pandemic. The company expects 2021 revenues between $1,000 to $1,040 million, projecting adjusted EBITDA of $180 to $190 million. Strategic divestitures are anticipated to generate approximately $1.95 billion in proceeds.
Laureate Education, Inc. (NASDAQ: LAUR) will announce its financial results for Q4 and the fiscal year ending December 31, 2020, on February 25, 2021, prior to the market opening. A conference call for investors and analysts is scheduled for 8:30 a.m. ET to discuss these results and future outlook. Participants can join the call by dialing specific numbers for U.S. and international callers. Replays will be available until March 4, 2021. More information, including the earnings release and slides, will be accessible on their Investor Relations webpage.
Laureate Education (NASDAQ: LAUR) completed its cash tender offer for up to $650 million of its 8.250% Senior Notes due 2025, expiring on December 10, 2020. Validly tendered notes amounted to $500,000, all of which will be accepted. The company will make payments at 100% of the principal plus accrued interest, totaling approximately $505,041.67, expected on December 15, 2020. This release serves for informational purposes and does not constitute an offer to purchase notes in jurisdictions where such offers are illegal.
Laureate Education (NASDAQ: LAUR) is initiating a cash tender offer to purchase up to $650 million of its 8.250% Senior Notes due 2025 at 100% of the principal amount. This offer follows the sale of its operations in Australia and New Zealand, providing the funds from cash on hand. The offer expires on December 10, 2020. Following a previous tender offer for $300 million, where $775,000 was validly tendered, all valid tenders were accepted. Payments for the Notes will be made on November 16, 2020, totaling approximately $777,664.06.
Laureate Education (LAUR) reported a 12% decline in Q3 2020 revenue, totaling $243.5 million, largely due to currency fluctuations and the impact of COVID-19. The operating loss surged to $(318.2) million driven by $323.4 million in impairment charges. For the nine months ended September 30, 2020, revenue fell 14% to $739.7 million, with a net loss of $(997.7) million. However, Adjusted EBITDA increased to $50.4 million in Q3 and $115.1 million year-to-date, supported by cost controls. The board approved a $300 million share repurchase program to enhance shareholder value.
Laureate Education, Inc. (NASDAQ: LAUR) has successfully closed the sale of its Australian and New Zealand operations, including Torrens University Australia and Think Education, to Strategic Education, Inc. (NASDAQ: STRA) for US$642.7 million. After adjustments, Laureate received approximately US$650 million post-transaction fees. CEO Eilif Serck-Hanssen expressed good wishes for the buyer and the institutions involved, highlighting the continued delivery of quality education. This strategic move directs Laureate's focus on enhancing its educational impact.
Laureate Education has signed a definitive agreement with Ânima Holding for the sale of its Brazilian operations valued at R$4.6 billion (approximately US$765 million). After accounting for a termination fee to Ser Educacional, the net proceeds are around R$4.4 billion. The transaction includes R$3.8 billion in cash, with potential additional payments of R$203 million based on performance metrics. This deal is expected to close by Q2 2021, pending regulatory and shareholder approvals. CEO Eilif Serck-Hanssen expressed confidence in the future of Brazilian institutions under Ânima's ownership.