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Sep 30, 2020
Laureate Q3 2020 Earnings Report
Laureate's Q3 2020 financial performance reflected a decrease in revenue due to currency fluctuations, an increased operating loss driven by impairment charges, and an increase in Adjusted EBITDA aided by cost controls and productivity initiatives.
Key Takeaways
Laureate Education reported a decrease in revenue for Q3 2020, driven by currency fluctuations. The company experienced an increased operating loss due to impairment charges but saw an increase in Adjusted EBITDA, aided by tight cost controls and productivity initiatives. The company also announced a new share repurchase authorization.
Revenue decreased by 12% to $243.5 million, primarily due to weakening foreign currencies.
Operating loss increased to $(318.2) million, driven by impairment charges of $323.4 million.
Net loss was $(784.4) million, attributable to impairment charges and loss from asset sales.
Adjusted EBITDA increased to $50.4 million, aided by cost controls and productivity initiatives.
Forward Guidance
Laureate is updating its full-year 2020 guidance due to the reclassification of various operations into Discontinued Operations. Following completion of all pending asset sales, Laureate anticipates being able to further reduce its trailing 12-month Corporate overhead expenses by 70-80%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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