Laureate Education Unveils Major $100 Million Stock Repurchase Plan

Laureate Education's New $100 Million Share Repurchase Program

MIAMI — Laureate Education, Inc. (NASDAQ: LAUR) has recently announced an exciting new initiative through its board of directors, who have approved a significant stock repurchase program designed to acquire up to $100 million of its common stock. This strategic move illustrates the company's solid financial health and commitment to enhancing shareholder value.

Financing the Repurchases

The company has formulated a clear plan for executing this repurchase program. The financing will stem from the company's free cash flow, supplemented by excess cash and available liquidity. This includes leveraging capacity available under the Revolving Credit Facility, ensuring that they can carry out these repurchases without endangering their operational capital.

A Look Back at Previous Programs

It’s notable that this announcement follows the successful completion of a previous $100 million repurchase program, which was authorized earlier in 2024. Since the beginning of 2019, Laureate Education has impressively returned nearly $3 billion to its shareholders via a combination of stock buybacks, cash distributions, and dividends. This trajectory of returning value to shareholders is a clear indicator of the company's robust operational performance and sustainable profit generation.

Execution of the Repurchase Program

With the newly authorized repurchase plan, Laureate Education intends to carry out these purchases selectively in the open market, capitalizing on prevailing market conditions. The acquisitions may occur through various legally permissible channels, including negotiated transactions, block trades, or through a trading plan that complies with Rule 10b5-1, a rule intended to prevent insider trading. This flexibility allows the company to adjust to changing market dynamics, thereby optimizing the effectiveness of the repurchase program.

Ongoing Oversight and Adjustments

The board of directors at Laureate will periodically review this share repurchase program, giving them the authority to make necessary modifications. These adjustments could encompass changes to the program’s terms and size or even putting a halt to the initiative if deemed appropriate. This proactive governance approach assures shareholders of the program's deliberate management.

Overview of Laureate Education, Inc.

Laureate Education, Inc. is a prominent player in the landscape of higher education, operating five institutions located in Mexico and Peru. With an impressive enrollment of approximately 450,000 students, the company offers a wide range of undergraduate, graduate, and specialized degree programs. The focus remains not only on academic excellence but also on innovation, with a strong emphasis on improving employability outcomes for graduates. By broadening access to quality education, Laureate Education plays a pivotal role in fostering societal and economic growth.

Commitment to Quality and Accessibility

This dedication to higher education is deeply rooted in Laureate's philosophy. The success of its students is viewed as a direct contributor to the prosperity of the countries they serve. With a firm belief that education can transform lives, Laureate strives to ensure that quality education is accessible to all, thereby addressing workforce needs and promoting economic development.

Conclusion

With the introduction of this $100 million share repurchase program, Laureate Education, Inc. showcases its commitment to shareholder returns and solidifies its status as a leader in the education sector. The strategic financing and execution of this plan, combined with a history of robust financial performance, paints a promising picture for the future. Investors can look forward to continual updates as the company navigates these opportunities.

Frequently Asked Questions

What is the purpose of the share repurchase program?

The share repurchase program aims to enhance shareholder value by utilizing excess cash to buy back shares, signaling confidence in the company’s financial strength.

How will Laureate fund the repurchase program?

The company plans to fund the repurchases using free cash flow, excess cash, and liquidity, including access to its Revolving Credit Facility.

Has Laureate Education conducted share buybacks previously?

Yes, Laureate Education has successfully executed previous buyback programs, returning nearly $3 billion to shareholders since 2019.

How often will the board review the repurchase program?

The board will periodically review the program and may make adjustments to its terms and size based on market conditions and financial considerations.

What impact does this program have on Laureate's future?

This program illustrates Laureate's commitment to returning value to shareholders and suggests a positive outlook for the company's future financial performance.

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