Laureate Education, Inc.

Thank you for standing by and welcome to Laureate Education's third quarter 2022 results call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. I would now like to hand the call over to Adam Morse, Senior VP, Corporate Finance. Please go ahead.

Good morning, and thank you for joining us on today's call to discuss Laureate Education's third quarter 2022 results. Joining me on the call today are Alex Sarkanton, 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'll be referring to during today's call. The call is being webcast, and a complete recording will be available after the call. I would like to 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-K filed with the U.S. 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 date of this conference call, and we either take no obligation to update any forward-looking statement. Additionally, non-GAAP measures that we discussed, including, and among others, adjusted EBITDA and its related margin, total cash net of debt, and free cash flow, are also detailed and reconciled to their GAAP counterparts in our press release or supplementary presentation. Let me now turn the call over to Ayla.

Thank you, Adam, and good morning, everyone. We recently completed our primary intake cycle in Mexico and our secondary intake in Peru. and I am pleased to report strong new enrollment trends in both of our markets. In Mexico, new enrollments increased 17% versus third quarter of last year with double-digit growth in both brands. In Peru, new enrollments grew 8% versus third quarter of last year with favorable performance at all three institutions. On the strength of these intakes, we are increasing our full year 2022 outlook. Later in our prepared remarks, Rick will walk you through the updated guidance for the year. We continue to believe that the best way to create value for all of our stakeholders is to accelerate our revenue growth through a highly focused set of growth initiatives supported by favorable secular trends for higher education in our markets, including the acceleration of digital learning. Our financial and operational results through the first nine months of the year demonstrate that our growth agenda is taking hold. We are on track to deliver on our medium-term forecast of 8% to 10% top-line growth following the completion of the recent intake, and we continue to drive margin expansion. L'Oréal's success is driven by three key factors. First and foremost, of market-leading brands and their commitment to academic quality. Secondly, a focused approach to two-scale markets. And lastly, our strong digital capabilities with a powerful omnichannel distribution model that allows us to deliver quality education in a variety of formats, including face-to-face, fully online, and hybrid delivery. In addition to delivering on our growth and quality commitments, we continue to prioritize return of capital for our shareholders. As of September 30th, our net cash position was $192 million. On October 12th, we paid a special cash distribution of $137 million, or 83 cents per share, related to the remaining net proceeds from the sale of Walden University. On October 24th, we announced $112 million, or 68 cents per share, special cash dividend to be paid on November 17th. Our cash-accreted business model and our strong balance sheet provide us with a lot of flexibility as we continue to think through future return of capital strategies and shareholder value optimization efforts. That concludes my prepared remarks, and I will now turn the call over to Rick Boskirk for a comprehensive financial overview of the third quarter and year-to-date performance, as well as further details on our improved 2022 outlook.