Guidance Archives - Benefit Group

March 2, 2023

Desktop Metal Announces Fourth Quarter and Full Year 2022 Financial Results and Initiates 2023 Guidance

Record fourth quarter revenue of $60.6 million, up 6.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} from the fourth quarter of 2021
Record full year 2022 revenue of $209.0 million, up 86.0{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} from 2021
Cost reduction initiatives on-track to deliver $100 million in aggregate, annualized cost savings in 2023, prioritizing path to profitability
Initiates full year 2023 revenue guidance of between $210 and $260 million

BOSTON, March 01, 2023–(BUSINESS WIRE)–Desktop Metal, Inc. (NYSE: DM) today announced financial results for the fourth quarter and full year ended December 31, 2022.

“Desktop Metal delivered record revenue for fourth quarter and full year 2022, fueled by our differentiated portfolio of AM 2.0 mass production solutions, our strong market position, and the team’s solid execution amidst an unsteady macro environment,” said Ric Fulop, Founder and CEO of Desktop Metal. “We also took actions to streamline the business and expanded our cost reduction plans to $100 million in annualized cost savings to prioritize our path to profitability and position the business for long-term growth. As a result, we enter 2023 a stronger, more resilient company focused on driving another year of revenue growth at scale, delivering on our cost reduction measures, and dramatically improving adjusted EBITDA and cash flow, in order to capitalize on the next stage of secular growth in the additive manufacturing market.”

Recent Business Highlights:

Continued and expanded the cost reduction plan announced in 2022 to add an additional $50 million in annualized savings after successfully completing $50 million in annualized savings in 2022. Total combined $100 million in annualized cost savings are on-track in order to reduce expense structure, drive margin expansion, and prioritize path to profitability
Announced strategic collaboration with Align Technology to accelerate adoption of digital dentistry in the $30 billion annual dental parts market. Align’s market-leading iTero intraoral scanners will be offered as a seamless managed service to dentists in a subscription model with recurring revenue, enabling a gateway for a connected suite of digital dentistry solutions with a workflow backed by Desktop Labs’ experienced network of digitized dental laboratories and premium Desktop Health 3D printers and materials
Commenced shipments of Production System™ P-50 in 2022 including continued traction with automotive, industrial, and other major end markets. Recently signed master supply agreement with one of the largest consumer electronics companies in the world
Launched the all-new S-Max Flex^® for affordable and scalable digital sand casting, leveraging Single Pass Jetting™ technology
Unveiled FreeFoam, a revolutionary, expandable 3D printable resin designed for volume production of foam parts
Launched Figur G15, the first commercial platform of its kind to shape standard sheet metal on demand using patent-pending Digital Sheet Forming (DSF) technology
Installations of additive manufacturing systems for metal parts surpassed 1,100 units including some of largest production deployments in additive manufacturing

Fourth Quarter 2022 Financial Highlights:

Revenue of $60.6 million, up 6.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} from the fourth quarter of 2021
GAAP gross margin of 13.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}; non-GAAP gross margin of 24.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, a sequential improvement of 440 basis points from the third quarter of 2022
GAAP net loss of $312.4 million, including $269.3 million of goodwill impairment and $10.1 million of amortization of acquired intangible assets; non-GAAP net loss of $24.0 million
Adjusted EBITDA of $(21.1) million

Full Year 2022 Financial Highlights:

Revenue of $209.0 million, up 86.0{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} from 2021
Revenue contribution of 24{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} from high-margin consumables, services, and subscription
GAAP gross margin of 7.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}; non-GAAP gross margin of 22.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
GAAP net loss of $740.3 million, including $498.8 million of goodwill impairment and $38.7 million of amortization of acquired intangible assets; non-GAAP net loss of $130.7 million
Adjusted EBITDA of $(118.4) million
Cash, cash equivalents, and short-term investments of $184.5 million as of December 31, 2022

Outlook for Full Year 2023:

Revenue expectation of between $210 to $260 million for full year 2023
Adjusted EBITDA expectation of between $(50) to $(25) million for full year 2023, with expectation to achieve Adjusted EBITDA breakeven before year end 2023

Desktop Metal has not provided a reconciliation of its Adjusted EBITDA outlook to net income because estimates of all of the reconciling items cannot be provided without unreasonable efforts. See “Non-GAAP Financial Information.”

Conference Call Information:

Desktop Metal will host a conference call on Wednesday, March 1, 2023 at 4:30 p.m. ET to discuss fourth quarter and full year 2022 results. Participants may access the call at 1-877-407-4018, international callers may use 1-201-689-8471, and request to join the Desktop Metal financial results conference call. A simultaneous webcast of the conference call and the accompanying summary presentation may be accessed online at the Events & Presentations section of https://ir.desktopmetal.com. A replay will be available shortly after the conclusion of the conference call at the same website.

About Desktop Metal:

Desktop Metal (NYSE:DM) is driving Additive Manufacturing 2.0, a new era of on-demand, digital mass production of industrial, medical, and consumer products. Our innovative 3D printers, materials, and software deliver the speed, cost, and part quality required for this transformation. We’re the original inventors and world leaders of the 3D printing methods we believe will empower this shift, binder jetting and digital light processing. Today, our systems print metal, polymer, sand and other ceramics, as well as foam and recycled wood. Manufacturers use our technology worldwide to save time and money, reduce waste, increase flexibility, and produce designs that solve the world’s toughest problems and enable once-impossible innovations. Learn more about Desktop Metal and our #TeamDM brands at www.desktopmetal.com.

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical facts contained in these communications, including statements regarding Desktop Metal’s future results of operations and financial position, financial targets, business strategy, plans and objectives for future operations, are forward-looking statements. Forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including but not limited to risks associated with the integration of the business and operations of acquired businesses, our ability to realize the benefits from cost saving measures, and supply and logistics disruptions, including shortages and delays. For more information about risks and uncertainties that may impact Desktop Metal’s business, financial condition, results of operations and prospects generally, please refer to Desktop Metal’s reports filed with the SEC, including without limitation the “Risk Factors” and/or other information included in the Form 10-K filed with the SEC on March 1, 2023, and such other reports as Desktop Metal has filed or may file with the SEC from time to time. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Desktop Metal, Inc. assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

DESKTOP METAL, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts)

	December 31,
	2022			2021
Assets
Current assets:
Cash and cash equivalents	$	76,291		$	65,017
Current portion of restricted cash		4,510			2,129
Short‑term investments		108,243			204,569
Accounts receivable		38,481			46,687
Inventory		91,736			65,399
Prepaid expenses and other current assets		17,155			18,208
Total current assets		336,416			402,009
Restricted cash, net of current portion		1,112			1,112
Property and equipment, net		56,271			58,710
Goodwill		112,955			639,301
Intangible assets, net		219,830			261,984
Other noncurrent assets		27,763			25,480
Total Assets	$	754,347		$	1,388,596
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	25,105		$	31,558
Customer deposits		11,526			14,137
Current portion of lease liability		5,730			5,527
Accrued expenses and other current liabilities		26,723			33,829
Current portion of deferred revenue		13,719			18,189
Current portion of long‑term debt, net of deferred financing costs		584			825
Total current liabilities		83,387			104,065
Long-term debt, net of current portion		311			548
Convertible notes		111,834			—
Contingent consideration, net of current portion		—			4,183
Lease liability, net of current portion		17,860			13,077
Deferred revenue, net of current portion		3,664			4,508
Deferred tax liability		8,430			10,695
Other noncurrent liabilities		1,359			3,170
Total liabilities		226,845			140,246
Commitments and Contingencies (Note 17)
Stockholders’ Equity
Preferred Stock, $0.0001 par value—authorized, 50,000,000 shares; no shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively		—			—
Common Stock, $0.0001 par value—500,000,000 shares authorized; 318,235,106 and 311,737,858 shares issued at December 31, 2022 and December 31, 2021, respectively, 318,133,434 and 311,473,950 shares outstanding at December 31, 2022 and December 31, 2021, respectively		32			31
Additional paid‑in capital		1,874,792			1,823,344
Accumulated deficit		(1,308,954	)		(568,611	)
Accumulated other comprehensive loss		(38,368	)		(6,414	)
Total Stockholders’ Equity		527,502			1,248,350
Total Liabilities and Stockholders’ Equity	$	754,347		$	1,388,596

DESKTOP METAL, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts)

	Years Ended December 31,
	2022			2021			2020
Revenues
Products	$	190,248		$	105,994		$	13,718
Services		18,775			6,414			2,752
Total revenues		209,023			112,408			16,470
Cost of sales
Products		178,952			87,450			26,945
Services		15,000			6,665			4,574
Total cost of sales		193,952			94,115			31,519
Gross profit (loss)		15,071			18,293			(15,049	)
Operating expenses
Research and development		96,878			68,131			43,136
Sales and marketing		68,091			47,995			13,136
General and administrative		83,065			78,041			20,734
In-process research and development assets acquired		—			25,581			—
Goodwill impairment		498,800			—			—
Total operating expenses		746,834			219,748			77,006
Loss from operations		(731,763	)		(201,455	)		(92,055	)
Change in fair value of warrant liability		—			(56,576	)		56,417
Interest expense		(1,743	)		(149	)		(328	)
Interest and other (expense) income, net		(8,335	)		(11,822	)		1,011
Loss before income taxes		(741,841	)		(270,002	)		(34,955	)
Income tax benefit		1,498			29,668			940
Net loss	$	(740,343	)	$	(240,334	)	$	(34,015	)
Net loss per share—basic and diluted	$	(2.35	)	$	(0.92	)	$	(0.22	)
Weighted average shares outstanding, basic and diluted		314,817			260,770			157,906

DESKTOP METAL, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)

	Years Ended December 31,
	2022			2021			2020
Net loss	$	(740,343	)	$	(240,334	)	$	(34,015	)
Other comprehensive (loss) income, net of taxes:
Unrealized gain (loss) on available-for-sale marketable securities, net		(290	)		(40	)		(84	)
Foreign currency translation adjustment		(31,664	)		(6,365	)		—
Total comprehensive (loss) income, net of taxes of $0	$	(772,297	)	$	(246,739	)	$	(34,099	)

DESKTOP METAL, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (in thousands, except share amounts)

													Accumulated
													Other
								Additional					Comprehensive		Total
	Legacy Convertible Preferred Stock				Common Stock			Paid‑in		Accumulated			(Loss)		Stockholders’
	Shares		Amount		Shares	Amount		Capital		Deficit			Income		Equity

BALANCE—January 1, 2020	100,038,109		$	436,553	26,813,113	$	3	$	16,722	$	(294,262	)	$	75	$	(277,462	)
Retroactive application of recapitalization (Note 1)	(100,038,109	)

February 10, 2023

Stock tanks 30{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} after Q1 2023 guidance miss

Lyft (LYFT) described its Q4 2022 earnings on Feb. 9 immediately after market place near. The stock plummeted 30{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} in soon after-hrs trade next the launch.

The San Francisco-based firm beat on important metrics, such as revenue and its energetic rider count, but missed analysts’ estimates for Q1 2023 earnings. Lyft explained it expects to make about $975 million in earnings in the fiscal very first quarter of 2023, reduce than the $1.09 billion analysts anticipated.

Here is what the journey-hailing business documented, as compared to estimates compiled by Bloomberg:

Q4 profits: $1.18 billion actual versus $1.16 billion predicted

Q4 reduction for every share: -$1.61 precise compared to 13 cents predicted

Q4 energetic riders: 20.36 million actual as opposed to 20.3 million expected

Q1 revenue direction: $975 million real compared to $1.09 billion anticipated

“Our Q1 advice is the final result of seasonality and reduced charges, which includes significantly less Key Time,” Lyft CFO Elaine Paul in a assertion. Key time refers to when there are additional passengers than Lyft motorists — and prices are larger.

Lyft’s gaping EPS miss out on is connected to how the company’s coverage renewal performed out, which Paul also famous. “Our diverse insurance coverage renewal timing places in a different way timed pressure on our P&L. We are not waiting around for that to normalize to realize competitive support concentrations.”

PARK CITY, UTAH - JANUARY 23: General view of Lyft signage during the Sundance Film Festival on January 23, 2023 in Park City, Utah. (Photo by Mat Hayward/Getty Images) — PARK Metropolis, UTAH – JANUARY 23: Normal see of Lyft signage during the Sundance Film Competition on January 23, 2023 in Park City, Utah. (Picture by Mat Hayward/Getty Illustrations or photos)

‘We are targeted on driving higher growth and profitability’

However, there were being notably good points in Lyft’s launch, specifically if you take into consideration its trajectory. For occasion, the company’s Q4 profits jumped 21{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} yr-about-year, although its active ride count is up just about 9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} 12 months-in excess of-calendar year.

“In Q4 we accomplished the highest revenues in our company’s record and we outperformed assistance on Adjusted EBITDA excluding the motion we took to improve our coverage reserves,” Paul reported.

Logan Inexperienced, co-founder and CEO of Lyft additional, “In 2022 we took significant actions to fortify our business enterprise and sent sizeable price to our customers. The far better marketplace stability we see right now makes major prospects for extensive-phrase lucrative growth. To just take edge of this chance we will have to assure aggressive services amounts. Reinforcing our aggressive position, servicing much more desire and lowering our fixed and variable costs will put us in the best situation to provide potent shareholder returns.”

For its aspect, Uber reported its Q4 earnings on Feb. 8, presenting up critical beats in both equally revenue and shipping and delivery bookings. The company’s $8.61 billion Q4 income beat represented a 49{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} year-over-12 months leap. Uber’s shares climbed about 5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} all through yesterday, slipping pretty somewhat in immediately after-several hours trading.

Allie Garfinkle is a Senior Tech Reporter at Yahoo Finance. Follow her on Twitter at @agarfinks and on LinkedIn.

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September 23, 2022

American Public Education Issues 2022 Guidance and Supplemental Financial Information

CHARLES TOWN, W.Va., Sept. 22, 2022 /PRNewswire/ — American Public Education, Inc. (Nasdaq: APEI) today initiated second half- and full-year 2022 guidance and issued a supplemental financial presentation.

Financial Supplement Highlights:

Consolidated 2022 revenue is expected to be $600 million to $610 million
Consolidated 2022 adjusted EBITDA is expected to be $53 million to $59 million
Pro forma 2022 adjusted EBITDA is expected to be $70 million to $76 million

APEI’s supplemental financial presentation published today can be found under Events & Presentations on APEI.com and as an exhibit to the Current Report on Form 8-K that APEI furnished with the Securities and Exchange Commission on September 22, 2022.

2022 Outlook:

The guidance highlighted above and the following statements are forward-looking statements based on APEI’s current expectations. These statements are forward-looking and actual results may differ materially from those expressed or implied in these statements. APEI undertakes no obligation to update publicly any forward-looking statements for any reason unless required by law. See “Forward-Looking Statements” below and refer to APEI’s supplemental financial presentation for further details.

	2022 Guidance¹
($ in millions)	Second Half 2022	Full Year 2022
APEI Consolidated Revenue	$295.6 to $305.6	$600.0 to $610.0
APEI Adjusted EBITDA	$21.1 to $27.1	$53.0 to $59.0

Pro forma Adjusted EBITDA⁽¹⁾		$70.0 to $76.0

⁽¹⁾Pro forma Adjusted EBITDA = Adjusted EBITDA plus $15 million in cost savings run-rate and one-time items (annualized estimated cost savings for savings in labor costs expected to occur in the fourth quarter of 2022 and one-time 2022 transition and integration items for Graduate School USA) plus $2 million in annualized non-recurring marketing costs (estimated marketing cost savings from in-sourcing marketing-related execution services in 2022)

Non-GAAP Financial Measures:

This press release contains the non-GAAP financial measure of Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization less non-cash expenses such as stock compensation and non-recurring expenses) and pro forma adjusted EBITDA (adjusted EBITDA plus annualized cost savings and one-time items plus non-recurring marketing costs). APEI believes that the use of these measures is useful because they allow investors to better evaluate APEI’s operating profit and cash generation capabilities.

Each of these measures excludes non-cash impairment charges, the adjustment to the gain on acquisition, non-cash compensation expense, loss on disposals of long-lived assets, and M&A-related professional fees.

These non-GAAP measures should not be considered in isolation or as an alternative to measures determined in accordance with generally accepted accounting principles in the United States (GAAP). The principal limitation of our non-GAAP measures are that they exclude expenses that are required by GAAP to be recorded. In addition, non-GAAP measures are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses are excluded.

APEI is presenting adjusted EBITDA in connection with its GAAP results and urges investors to review the reconciliation of adjusted EBITDA to the comparable GAAP financial measures that is included in the tables following this press release (under the captions “GAAP Outlook Net Income to Outlook Adjusted EBITDA”) and not to rely on any single financial measure to evaluate its business.

About American Public Education

American Public Education, Inc. (Nasdaq: APEI), through its institutions American Public University System (APUS), Rasmussen University, Hondros College of Nursing, and Graduate School USA (GSUSA), educate the service-minded student by providing career-focused higher education and career learning.

APUS, which operates through American Military University and American Public University, is the leading educator to active-duty military and veteran students* and serves approximately 90,000 adult learners worldwide via accessible and affordable higher education. Rasmussen University is a 120-year-old nursing and health sciences-focused institution that serves approximately 15,000 students across its 23 campuses and student service centers in six states and online. It also has schools of Business, Technology, Design, Early Education and Justice Studies.

Hondros College of Nursing focuses on educating pre-licensure nursing students at its six campuses in Ohio and one in Indiana. It is the largest educator of PN (LPN) nurses in the state of Ohio** with approximately 2,440 students. GSUSA is a leading training provider to the federal workforce with an extensive portfolio of government agency customers. It serves the federal workforce through customized contract training (B2G) to federal agencies and through open enrollment (B2C) to government professionals.

Both APUS and Rasmussen are institutionally accredited by the Higher Learning Commission (HLC), an institutional accreditation agency recognized by the U.S. Department of Education. Hondros College of Nursing is accredited by the Accrediting Bureau of Health Education Schools (ABHES). GSUSA is accredited by the Accrediting Council for Continuing Education & Training (ACCET). For additional information, visit www.apei.com.

*Based on FY 2019 Department of Defense tuition assistance and Veterans Administration student enrollment data, as reported by Military Times, 2020.

**Based on information compiled by the National Council of State Boards of Nursing and Ohio Board of Nursing.

Forward Looking Statements

Statements made in this press release regarding APEI or its subsidiaries that are not historical facts are forward-looking statements based on current expectations, assumptions, estimates and projections about APEI and the industry. In some cases, forward-looking statements can be identified by words such as “anticipate,” “believe,” “seek,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “should,” “will,” “would,” and similar words or their opposites. Forward-looking statements include, without limitation, statements regarding expected growth, registration and enrollments, revenues, income and adjusted EBITDA, pro forma adjusted EBITDA, EBITDA, estimated cost savings, benefits of the acquisition of Rasmussen University and plans with respect to recent, current and future initiatives.

Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, among others, risks related to: the effects, duration, and severity of and APEI’s response to the COVID-19 pandemic; adverse effects on demand as the pandemic abates; APEI’s dependence on the effectiveness of its ability to attract students who persist in its institutions’ programs; changing market demands; APEI’s inability to effectively market its institutions’ programs; APEI’s inability to maintain strong relationships with the military and maintain course registrations and enrollments from military students; APEI’s loss of its ability to receive funds under tuition assistance programs or the reduction, elimination, or suspension of tuition assistance; adverse effects of changes APEI makes to improve the student experience and enhance the ability to identify and enroll students who are likely to succeed; APEI’s need to successfully adjust to future market demands by updating existing programs and developing new programs; APEI’s failure to comply with regulatory and accrediting agency requirements and to maintain institutional accreditation; APEI’s loss of eligibility to participate in Title IV programs or ability to process Title IV financial aid; entering into and integrating acquisitions, including the integration of RU and GSUSA; APEI’s dependence on its technology infrastructure; and the various risks described in the “Risk Factors” section and elsewhere in APEI’s Quarterly Report on Form 10-Q for the period ended June 30, 2022 and Annual Report on Form 10-K for the year ended December 31, 2021, and in other filings with the SEC. You should not place undue reliance on any forward-looking statements. APEI undertakes no obligation to update publicly any forward-looking statements for any reason, unless required by law, even if new information becomes available or other events occur in the future.

Contacts:
Ryan Koren
AVP, Investor Relations & Corporate Development
(610) 428-7376

GAAP Outlook Net Income to Outlook Adjusted EBITDA:
The following table sets forth the reconciliation of the Company’s projected GAAP net income to the calculation of projected adjusted EBITDA for the six and twelve months ending December 31, 2022:

	Outlook Periods
	Six Months Ending		Twelve Months Ending
	December 31, 2022		December 31, 2022
(in thousands, except per share data)	Midpoint		Midpoint
Net (loss) income	$	(2,654)	$	(107,350)
Income tax (benefit) expense		(1,945)		(36,237)
Interest expense (income)		7,100		13,845
Equity investment loss		–		11
Depreciation and amortization		16,573		32,840
EBITDA		19,074		(96,891)

Impairment of goodwill and intangible assets		–		144,900
Adjustment to gain on acquisition		–		(3,828)
Stock compensation		4,943		9,649
(Gain) loss on disposals of long-lived assets		52		836
M&A – related professional fees		72		1,345
Accounting and other adjustments		–		–
Adjusted EBITDA	$	24,141	$	56,011

Cision

View original content:https://www.prnewswire.com/news-releases/american-public-education-issues-2022-guidance-and-supplemental-financial-information-301631622.html

SOURCE American Public Education, Inc.

May 26, 2022

Macy’s, Inc. Reports First Quarter 2022 Results and Raises Earnings Guidance

Comparable sales up 12.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} on an owned basis and up 12.4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} on an owned-plus-licensed basis

Diluted EPS of $0.98 and Adjusted diluted EPS of $1.08

Increased financial flexibility through a number of financing transactions

Repurchased $600 million of shares under $2 billion share repurchase program

Reaffirmed annual sales guidance and raised Adjusted diluted EPS guidance

NEW YORK, May 26, 2022–(BUSINESS WIRE)–Macy’s, Inc. (NYSE: M) today reported financial results for the first quarter of 2022 and updated its annual guidance.

“Our company delivered solid results in the first quarter despite a challenging operating environment. We delivered strong earnings, beating our estimates, and sales that were in line with our expectations. While macroeconomic pressures on consumer spending increased during the quarter, our customers continued to shop. We saw a notable shift back to occasion-based apparel and in-store shopping, as well as continued strength in sales of luxury goods. Our omnichannel ecosystem, which spans the value spectrum, has supported our ability to flex our wide assortment of categories, products and brands to capture consumer demand despite the volatile environment,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc. “As we look ahead to the rest of 2022, we remain focused on our customers and the successful execution of our Polaris long-term growth strategy. We believe that the efficiencies we built into our business enable us to navigate through the current uncertain macro environment.”

First Quarter Highlights

Comparisons are to first quarter 2021 unless noted otherwise. Comparisons to 2019 are provided, where appropriate, to benchmark performance given the impact of the pandemic in 2020.

Financial Highlights

*All amounts in millions except percentages and per share figures*	First Quarter
	2022	2021
Net sales	$5,348	$4,706
Comparable Sales
Owned	12.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Owned plus licensed	12.4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Net Income	$286	$103
Earnings before interest, taxes, depreciation and amortization (EBITDA)	$676	$454
Diluted earnings per share (EPS)	$0.98	$0.32
Adjusted Net income	$315	$126
Adjusted EBITDA	$684	$473
Adjusted Diluted EPS	$1.08	$0.39

Capital Allocation

During the first quarter, Macy’s, Inc. took the following actions to boost its liquidity and financial flexibility as well as return capital to shareholders:

On March 8, 2022, the collateral securing the company’s second lien notes was automatically released and all of the company’s long-term debt is now unsecured.
Using the proceeds from the issuance of $850 million in new unsecured notes along with cash on hand, Macy’s, Inc. redeemed approximately $1.1 billion of near-term debt that was originally maturing in 2023 and 2024. The net result of the issuance and redemptions is an approximately $300 million reduction to total long-term debt. As a result, the company does not have any material debt maturities for the next 5 years.
The company amended its asset-based credit facility, including extending the maturity of the $3 billion facility to March 2027.
In addition, the company repurchased $600 million of shares under its newly authorized $2 billion share repurchase program, which does not have an expiration date, and paid $45 million in dividends to shareholders.

“We believe that our first quarter performance reflects the durability of the Polaris strategy. The actions we took in the quarter to boost our liquidity and increase our financial flexibility provides us a long runway to invest further in our transformation, navigate the unprecedented macroeconomic environment and return capital to shareholders,” said Adrian Mitchell, chief financial officer of Macy’s, Inc. “As we move into the rest of this year, we have confidence in our ability to flex and pivot quickly in this dynamic environment.”

Additionally, at its last meeting, Macy’s board of directors declared a regular quarterly dividend of 15.75 cents per share on Macy’s, Inc. common stock, payable July 1, 2022, to shareholders of record at the close of business on June 15, 2022.

2022 Guidance

Despite the uncertainty within the macroeconomic environment, the company is reaffirming its annual 2022 sales guidance and raising its earnings guidance to account for first quarter 2022 share repurchases as well as improved expectations for credit card revenue. The company believes this guidance appropriately reflects its strategic positioning and the associated risks within this environment. The full update to guidance can be found in the presentation posted to macysinc.com/investors.

	Guidance as of May 26, 2022	Guidance as of February 22, 2022
Net sales	$24,460 million to $24,700 million Flat to up 1.0{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} growth versus 2021	$24,460 million to $24,700 million Flat to up 1.0{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} growth versus 2021
Adjusted EBITDA as a percent of sales	11.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} – 11.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	11.0{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} – 11.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Adjusted diluted earnings per share (reflecting first quarter share repurchases)	$4.53 – $4.95	$4.13 – $4.52

Conference Call and Webcasts

A webcast of Macy’s, Inc.’s call with analysts and investors to report its first quarter 2022 sales and earnings will be held today (May 26, 2022) at 8:00 a.m. ET. Macy’s, Inc.’s webcast, along with the associated presentation, is accessible to the media and general public via the company’s website at www.macysinc.com/investors. Analysts and investors may call in on 1-800-458-4121, passcode 8403658. A replay of the conference call and slides can be accessed on the website or by calling 1-888-203-1112 (same passcode) about two hours after the conclusion of the call. Additional information on Macy’s, Inc., including past news releases, is available at www.macysinc.com/pressroom.

The company will participate in a fireside chat at the Evercore ISI Consumer and Retail Conference at 8:00 a.m. ET on Tuesday, June 7, 2022. Media and investors may access a live audio webcast of the presentation at www.macysinc.com/investors. A replay of the webcast will also be available on the company’s website.

Important Information Regarding Financial Measures

Please see the final pages of this news release for important information regarding the calculation of the company’s non-GAAP financial measures.

About Macy’s, Inc.

At Macy’s, Inc. (NYSE: M), we are a trusted source for quality brands at great values from off-price to luxury. Across our iconic nameplates, including Macy’s, Bloomingdale’s and Bluemercury, we help our customers express their unique style and celebrate special moments, big and small. Headquartered in New York City, we operate one of retail’s largest e-commerce businesses integrated with a nationwide footprint to deliver the most convenient and seamless shopping experience. Our purpose is to create a brighter future with bold representation – so we can realize the full potential of every one of us. For more information, visit macysinc.com.

Forward-Looking Statements

All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including the effects of the COVID-19 pandemic on Macy’s customer demand and supply chain, as well as its consolidated results of operation, financial position and cash flows, Macy’s ability to successfully implement its Polaris strategy, including the ability to realize the anticipated benefits within the expected time frame or at all, conditions to, or changes in the timing of proposed real estate and other transactions, prevailing interest rates and non-recurring charges, the effect of potential changes to trade policies, store closings, competitive pressures from specialty stores, general merchandise stores, off-price and discount stores, manufacturers’ outlets, the Internet and catalogs and general consumer spending levels, including the impact of the availability and level of consumer debt, possible systems failures and/or security breaches, the potential for the incurrence of charges in connection with the impairment of intangible assets, including goodwill, Macy’s reliance on foreign sources of production, including risks related to the disruption of imports by labor disputes, regional or global health pandemics, and regional political and economic conditions, the effect of weather, inflation, labor shortages, the amount and timing of future dividends and share repurchases and other factors identified in documents filed by the company with the Securities and Exchange Commission, including under the captions “Forward-Looking Statements” and “Risk Factors” in the company’s Annual Report on Form 10-K for the year ended January 29, 2022. Macy’s disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

MACY’S, INC. Consolidated Statements of Income (Unaudited) (Note 1) (All amounts in millions except percentages and per share figures)

	13 Weeks Ended April 30, 2022						13 Weeks Ended May 1, 2021
				{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to						{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to
	$			Net sales			$			Net sales

Net sales	$	5,348					$	4,706

Credit card revenues, net		191			3.6	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}		159			3.4	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Cost of sales		(3,231	)		(60.4	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550})		(2,889	)		(61.4	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550})

Selling, general and administrative expenses		(1,879	)		(35.1	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550})		(1,748	)		(37.1	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550})

Gains on sale of real estate		42			0.8	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}		6			0.1	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Impairment, restructuring and other costs		(8	)		(0.1	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550})		(19	)		(0.4	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550})

Operating income		463			8.7	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}		215			4.6	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Benefit plan income, net		7						15

Interest expense, net		(47	)					(79	)

Losses on early retirement of debt		(31	)					(11	)

Income before income taxes		392						140

Federal, state and local income tax expense (Note 2)		(106	)					(37	)

Net income	$	286					$	103

Basic earnings per share	$	1.01					$	0.33

Diluted earnings per share	$	0.98					$	0.32

Average common shares:
Basic		283.5						311.6
Diluted		290.7						318.6

End of period common shares outstanding		269.7						311.0

Supplemental Financial Measures:
Gross Margin (Note 3)	$	2,117			39.6	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	$	1,817			38.6	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Depreciation and amortization expense	$	206					$	224

MACY’S, INC. Consolidated Balance Sheets (Unaudited) (Note 1) (millions)

	April 30, 2022		January 29, 2022		May 1, 2021

ASSETS:

Current Assets:

Cash and cash equivalents	$	672	$	1,712	$	1,798

Receivables		233		297		205

Merchandise inventories		4,956		4,383		4,230

Prepaid expenses and other current assets (Note 4)		372		366		1,007

Total Current Assets		6,233		6,758		7,240

Property and Equipment – net		5,601		5,665		5,798

Right of Use Assets		2,736		2,808		2,853

Goodwill		828		828		828

Other Intangible Assets – net		434		435		436

Other Assets		1,140		1,096		927

Total Assets	$	16,972	$	17,590	$	18,082

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Current Liabilities:

Short-term debt	$	—	$	—	$	294

Merchandise accounts payable		2,865		2,222		2,545

Accounts payable and accrued liabilities		2,456		3,086		2,616

Income taxes		222		108		63

Total Current Liabilities		5,543		5,416		5,518

Long-Term Debt		2,994		3,295		4,558

Long-Term Lease Liabilities		3,030		3,098		3,166

Deferred Income Taxes		968		983		868

Other Liabilities		1,159		1,177		1,297

Shareholders’ Equity		3,278		3,621		2,675

Total Liabilities and Shareholders’ Equity	$	16,972	$	17,590	$	18,082

MACY’S, INC. Consolidated Statements of Cash Flows (Unaudited) (Notes 1 and 5) (millions)

	13 Weeks Ended April 30, 2022			13 Weeks Ended May 1, 2021
Cash flows from operating activities:
Net income	$	286		$	103
Adjustments to reconcile net income to net cash provided by operating activities:
Impairment, restructuring and other costs		8			19
Depreciation and amortization		206			224
Benefit plans		5			10
Stock-based compensation expense		13			11
Gains on sale of real estate		(42	)		(6	)
Deferred income taxes		(17	)		(43	)
Amortization of financing costs and premium on acquired debt		2			8
Changes in assets and liabilities:
Decrease in receivables		65			71
Increase in merchandise inventories		(573	)		(457	)
Increase in prepaid expenses and other current assets		(13	)		(56	)
Increase in merchandise accounts payable		639			674
Decrease in accounts payable and accrued liabilities		(424	)		(114	)
Increase in current income taxes		122			75
Change in other assets and liabilities		(29	)		(25	)
Net cash provided by operating activities		248			494
Cash flows from investing activities:
Purchase of property and equipment		(171	)		(61	)
Capitalized software		(90	)		(38	)
Disposition of property and equipment		73			8
Other, net		(6	)		17
Net cash used by investing activities		(194	)		(74	)
Cash flows from financing activities:
Debt issued		850			500
Debt issuance costs		(21	)		(9	)
Debt repaid		(1,139	)		(503	)
Debt repurchase premium and expenses		(29	)		(12	)
Dividends paid		(45	)		—
Decrease in outstanding checks		(126	)		(276	)
Acquisition of treasury stock		(584	)		—
Net cash used by financing activities		(1,094	)		(300	)
Net increase (decrease) in cash, cash equivalents and restricted cash		(1,040	)		120
Cash, cash equivalents and restricted cash beginning of period		1,715			1,754
Cash, cash equivalents and restricted cash end of period	$	675		$	1,874

MACY’S, INC.

Consolidated Financial Statements (Unaudited)

Notes:
(1)		As a result of the seasonal nature of the retail business, the results of operations for the 13 weeks ended April 30, 2022 and May 1, 2021 (which do not include the Christmas season) are not necessarily indicative of such results for the fiscal year.
(2)		The income tax expense of $106 million and $37 million, or 27.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} and 26.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of pretax income, for the 13 weeks ended April 30, 2022 and May 1, 2021, respectively, reflect a different effective tax rate as compared to the company’s federal income tax statutory rate of 21{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}. The income tax effective rates for the 13 weeks ended April 30, 2022 and May 1, 2021 were impacted primarily by the effect of state and local taxes and the realization of deferred tax assets associated with the vesting and cancellation of certain stock-based compensation awards.
(3)		Gross margin is defined as net sales less cost of sales.
(4)		Prepaid expenses and other current assets as of May 1, 2021 included an income tax receivable of $520 million.
(5)		Restricted cash of $3 million and $76 million have been included with cash and cash equivalents for the 13 weeks ended April 30, 2022 and May 1, 2021, respectively.

MACY’S, INC.

Important Information Regarding Non-GAAP Financial Measures

The company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures provide users of the company’s financial information with additional useful information in evaluating operating performance. Management believes that providing supplemental changes in comparable sales on an owned plus licensed basis, which includes adjusting for the impact of comparable sales of departments licensed to third parties, assists in evaluating the company’s ability to generate sales growth, whether through owned businesses or departments licensed to third parties, and in evaluating the impact of changes in the manner in which certain departments are operated. Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measure which the company believes provides meaningful information about its operational efficiency by excluding the impact of changes in tax law and structure, debt levels and capital investment. In addition, management believes that excluding certain items from EBITDA, net income and diluted earnings per share that are not associated with the company’s core operations and that may vary substantially in frequency and magnitude from period-to-period provides useful supplemental measures that assist in evaluating the company’s ability to generate earnings and to more readily compare these metrics between past and future periods.

The company does not provide reconciliations of the forward-looking non-GAAP measures of adjusted EBITDA, diluted earnings per share and comparable sales on an owned plus licensed basis to the most directly comparable forward-looking GAAP measures because the timing and amount of excluded items are unreasonably difficult to fully and accurately estimate. For the same reasons, the company is unable to address the probable significance of the unavailable information, which could be material to future results.

Non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the company’s financial results prepared in accordance with GAAP. Certain of the items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the company’s financial position, results of operations or cash flows and should therefore be considered in assessing the company’s actual and future financial condition and performance. Additionally, the amounts received by the company on account of sales of departments licensed to third parties are limited to commissions received on such sales. The methods used by the company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies.

MACY’S, INC.

Important Information Regarding Non-GAAP Financial Measures

(All amounts in millions except percentages and per share figures)

Changes in Comparable Sales

Comparable Sales vs. 13 Weeks Ended May 1, 2021

Macy’s, Inc.

Macy’s

Bloomingdale’s

bluemercury

Increase in comparable sales on an owned basis (Note 6)

12.8

{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

10.7

{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

28.1

{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

25.2

{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Impact of departments licensed to third parties (Note 7)

(0.4

{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550})

(0.6

{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550})

(1.2

{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550})

0.0

{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Increase in comparable sales on an owned plus licensed basis

12.4

{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

10.1

{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

26.9

{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

25.2

{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Notes:
(6)		Represents the period-to-period percentage change in net sales from stores in operation during the 13 weeks ended April 30, 2022 and the 13 weeks ended May 1, 2021. Such calculation includes all digital sales and excludes commissions from departments licensed to third parties. Stores impacted by a natural disaster or undergoing significant expansion or shrinkage remain in the comparable sales calculation unless the store, or material portion of the store, is closed for a significant period of time. Definitions and calculations of comparable sales may differ among companies in the retail industry.
(7)		Represents the impact of including the sales of departments licensed to third parties occurring in stores in operation throughout the year presented and the immediately preceding year and all online sales in the calculation of comparable sales. The company licenses third parties to operate certain departments in its stores and online and receives commissions from these third parties based on a percentage of their net sales. In its financial statements prepared in conformity with GAAP, the company includes these commissions (rather than sales of the departments licensed to third parties) in its net sales. The company does not, however, include any amounts in respect of licensed department sales (or any commissions earned on such sales) in its comparable sales in accordance with GAAP (i.e., on an owned basis). The amounts of commissions earned on sales of departments licensed to third parties are not material to its net sales for the periods presented.

MACY’S, INC.

Important Information Regarding Non-GAAP Financial Measures
(All amounts in millions except percentages and per share figures)

Non-GAAP financial measures, excluding certain items below, are reconciled to the most directly comparable GAAP measure as follows:

EBITDA and adjusted EBITDA are reconciled to GAAP net income.
Adjusted net income is reconciled to GAAP net income.
Adjusted diluted earnings per share is reconciled to GAAP diluted earnings per share.

EBITDA and Adjusted EBITDA

	13 Weeks Ended April 30, 2022		13 Weeks Ended May 1, 2021

Net income	$	286	$	103
Interest expense, net		47		79
Losses on early retirement of debt		31		11
Federal, state and local income tax expense		106		37
Depreciation and amortization		206		224
EBITDA		676		454
Impairment, restructuring and other costs		8		19
Adjusted EBITDA	$	684	$	473

Adjusted Net Income and Adjusted Diluted Earnings Per Share

	13 Weeks Ended April 30, 2022						13 Weeks Ended May 1, 2021
	Net Income			Diluted Earnings Per Share			Net Income			Diluted Earnings Per Share

As reported	$	286			0.98		$	103		$	0.32

Impairment, restructuring and other costs		8			0.03			19			0.06
Losses on early retirement of debt		31			0.11			11			0.03
Income tax impact of certain items identified above		(10	)		(0.04	)		(7	)		(0.02	)

As adjusted to exclude certain items above	$	315		$	1.08		$	126		$	0.39

View source version on businesswire.com: https://www.businesswire.com/news/home/20220526005268/en/

Contacts

Media – Carolyn Ng Cohen
media@macys.com

Investors – Mike McGuire
investors@macys.com

February 9, 2022

Laureate Education Announces Preliminary Fourth Quarter and Year End 2021 Results and 2022 Guidance

MIAMI, Feb. 9, 2022 /PRNewswire/ — Laureate Education, Inc. (NASDAQ: LAUR) today announced preliminary financial results for the fourth quarter and year ended December 31, 2021 and guidance for full-year 2022.

Laureate Education Logo

Preliminary Fourth Quarter 2021 and Year End 2021 Results

Based on preliminary information, Laureate expects fourth quarter revenue of approximately $295 to $297 million and Adjusted EBITDA of approximately $57 to $60 million, and, for the year ended December 31, 2021, expects revenue of approximately $1,085 to $1,087 million and Adjusted EBITDA of approximately $250 to $253 million. Total enrollment at year-end 2021 was approximately 388,500 students.

Laureate ended the fourth quarter of 2021 with approximately $325 million of cash and cash equivalents and $154 million in debt outstanding. In addition, $74 million of the Walden sale transaction value was paid into an escrow account, which will be released in full or in part to Laureate in August 2022 pursuant to the terms and conditions of the escrow agreement.

Preliminary Outlook for Fiscal 2022

Based on preliminary information and the current foreign exchange spot rates¹, Laureate currently expects its full-year 2022 results to be as follows:

Total enrollments expected to be in the range of 405,000 to 415,000;
Revenues expected to be in the range of $1,169 to $1,194 million; and
Adjusted EBITDA expected to be in the range of $320 to $330 million.

Reconciliations of the forward-looking non-GAAP measures, including the 2022 Adjusted EBITDA outlook, to the relevant forward-looking GAAP measures are not being provided, as Laureate does not currently have sufficient data to accurately estimate the variables and individual adjustments for such reconciliations, and such reconciliation could not be produced without unreasonable effort.

Please see the “Forward-Looking Statements” section in this release for a discussion of certain risks related to this outlook.

¹ Based on actual FX rates for January and spot FX rates (local currency per U.S. Dollar) of MXN 20.56 and PEN 3.86 for February 2022—December 2022. FX impact may change based on fluctuations in currency rates in future periods.

The preliminary estimates for the quarter and year ended December 31, 2021 and outlook for fiscal 2022 set forth herein are not yet complete and are based on information available to our management team as of the date hereof. We have prepared the preliminary estimates disclosed in good faith based upon our internal reporting. These estimates are preliminary and unaudited, inherently uncertain, and subject to change as we complete our financial statements as of and for the quarter and year ended December 31, 2021. These preliminary estimates are not guarantees of actual performance, and are not guarantees of, or indicative of, future performance. Given the timing of these preliminary estimates, we have not completed our customary financial closing and review procedures, including full income tax calculations and management’s review of the results. We may identify other items that require material adjustments to these preliminary estimates as we finalize our financial statement close procedures for the quarter. Accordingly, these preliminary estimates should not be viewed as a substitute for full financial statements for the quarter and year ended December 31, 2021, prepared in accordance with accounting principles generally accepted in the United States (GAAP). Final results for the quarter and year ended December 31, 2021, and the final 2022 outlook could differ materially from these preliminary estimates. You should exercise caution in relying on these preliminary estimates and should not place undue reliance on this information or draw any inferences from this information regarding financial or operating data not yet provided or available. These preliminary results are subject to the final review by our audit committee and review by our independent registered public accounting firm. Accordingly, our independent registered public accounting firm does not express an opinion or any other form of assurance with respect thereto. Important factors that could cause our actual results to differ from these preliminary estimates are set forth below under “Forward- Looking Statements.”

Forward-Looking Statements

This press release includes statements that express Laureate’s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, ”forward-looking statements” within the meaning of the federal securities laws, which involve risks and uncertainties. Laureate’s actual results may vary significantly from the results anticipated in these forward-looking statements. You can identify forward-looking statements because they contain words such as ”believes,” ”expects,” ”may,” ”will,” ”should,” ”seeks,” ”approximately,” ”intends,” ”plans,” ”estimates” or ”anticipates” or similar expressions that concern our strategy, plans or intentions. All statements we make relating to (i) guidance (including, but not limited to, total enrollments, revenues, and Adjusted EBITDA), (ii) our current growth strategy and other future plans, strategies or transactions that may be identified, explored or implemented and any litigation or dispute resulting from any completed transaction, (iii) any anticipated share repurchases or cash distributions and (iv) the potential impact of the COVID-19 pandemic on our business or the global economy as a whole are forward-looking statements. In addition, we, through our senior management, from time to time make forward-looking public statements concerning our expected future operations and performance and other developments. All of these forward-looking statements are subject to risks and uncertainties that may change at any time, including with respect to our current growth strategy and the impact of any completed divestiture. Accordingly, our actual results may differ materially from those we expected. We derive most of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and, of course, it is impossible for us to anticipate all factors that could affect our actual results. 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 SEC on February 25, 2021, our Quarterly Reports on Form 10-Q filed and to be filed with the SEC and other filings made with the SEC. These forward-looking statements speak only as of the time of this release and we do not undertake to publicly update or revise them, whether as a result of new information, future events or otherwise, except as required by law.

Presentation of Non-GAAP Measures

In addition to the results provided in accordance with GAAP in this press release, Laureate provides the non-GAAP measurement of Adjusted EBITDA. We have included this non-GAAP measurement because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans.

Adjusted EBITDA consists of income (loss) from continuing operations, adjusted for certain items. The exclusion of certain expenses in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business. Additionally, Adjusted EBITDA is a key input into the formula used by the compensation committee of our board of directors and our Chief Executive Officer in connection with the payment of incentive compensation to our executive officers and other members of our management team. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.

We have not included a GAAP reconciliation of our Adjusted EBITDA amounts for the quarter or the year ended December 31, 2021, because we have not yet completed our financial closing procedures for the quarter and year ended December 31, 2021, and such reconciliation could not be produced without unreasonable effort.

About Laureate Education, Inc.

Laureate Education, Inc. operates five universities across Mexico and Peru, enrolling more than 350,000 students in high-quality undergraduate, graduate, and specialized degree programs through campus-based and online learning. Our universities have a deep commitment to academic quality and innovation, strive for market-leading employability outcomes, and work to make higher education more accessible. At Laureate, we know that when our students succeed, countries prosper, and societies benefit. Learn more at laureate.net.

Investor Relations Contact:
ir@laureate.net

Media Contact:
Adam Smith
Laureate Education, Inc.
adam.smith@laureate.net
U.S.: +1 (443) 255 0724

Cision

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SOURCE Laureate Education, Inc.