Laureate Education Inc (LAUR) 2024 Q3 法說會逐字稿

Good day. And thank you for standing by. Welcome to the Q3 2024 Laureate Education Inc earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

再會。感謝您的支持。歡迎參加 Laureate Education Inc 2024 年第三季財報電話會議。（操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the call over to Adam Morse, Senior Vice President of Corporate Finance. Please go ahead.

我現在想將電話轉交給公司財務高級副總裁 Adam Morse。請繼續。

Good morning, and thank you for joining us on today's call to discuss Laureate Education's third quarter, 2024 results. Joining me on the call today are Eilif Serck-Hanssen, President and Chief Executive Officer, and Rick Buskirk, Chief Financial Officer.

早安，感謝您參加今天的電話會議，討論 Laureate Education 2024 年第三季的業績。今天與我一起參加電話會議的還有總裁兼執行長 Eilif Serck-Hanssen 和財務長 Rick Buskirk。

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 will be referring to during today's call. The call is being webcast and a complete recording will be available after the call.

我們的收益新聞稿可在我們網站 Laureate.net 的投資者關係部分取得。我們還在網站上發布了補充演示文稿，我們將在今天的電話會議中提及。此次通話正在進行網路直播，通話結束後將提供完整的錄音。

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.

我想提醒您，我們今天提供的一些信息，包括但不限於我們的財務和營運指南，構成適用美國證券法含義內的前瞻性陳述。

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.

前瞻性陳述受到隨時可能變化的風險和不確定性的影響，因此我們的實際結果可能與我們的預期有重大差異。可能導致實際結果與我們的預期產生重大差異的重要因素已在我們向美國證券交易委員會提交的10-K 表格年度報告、今天上午早些時候提交的10-Q 表格以及向SEC 提交的其他文件中披露。

In addition, all forward-looking statements are based on current expectations as of the date of this conference call and we undertake no obligation to update any forward-looking statements.

此外，所有前瞻性陳述均基於截至本次電話會議之日的當前預期，我們不承擔更新任何前瞻性陳述的義務。

Additionally, non-GAAP measures that we discuss, including, and among others, Adjusted EBITDA and its related margin, total debt, net of cash, and Free Cash Flow are also detailed and reconciled to their GAAP counterparts in our press release or supplementary presentation.

此外，我們討論的非公認會計原則衡量指標，包括調整後的EBITDA 及其相關利潤率、債務總額、淨現金和自由現金流，也在我們的新聞稿或補充簡報中詳細說明並與公認會計原則對應指標進行了核對。

Let me now turn the call over to Eilif.

現在讓我把電話轉給艾利夫。

Thank you, Adam, and good morning, everyone.

謝謝你，亞當，大家早安。

Today we are pleased to report strong financial performance for the third quarter, along with the results of our recently completed intake cycles.

今天，我們很高興地報告第三季強勁的財務業績，以及我們最近完成的吸收週期的結果。

Third quarter Revenue was $369 million and Adjusted EBITDA was $91 million, both metrics were ahead of the guidance we provided in early August.

第三季營收為 3.69 億美元，調整後 EBITDA 為 9,100 萬美元，這兩個指標均優於我們 8 月初提供的指引。

Favorable results were driven by Peru, in which new enrollments increased by 12% year-over-year for the third quarter.

秘魯取得了良好的成績，第三季新入學人數年增 12%。

We expect that this growth rate will increase to an impressive 16% year-over-year, upon completion of the intake cycle. The macroeconomic conditions in Peru continue to improve. Consumer spending has increased, supported by stable inflation, lower interest rates and rising wages. Economists are now forecasting GDP growth of approximately 3% for 2024 – a significant turnaround since the 2023 recession.

我們預計，在吸收週期完成後，這一成長率將年增 16%，令人印象深刻。秘魯宏觀經濟狀況持續改善。在穩定的通膨、較低的利率和不斷上漲的工資的支撐下，消費者支出增加。經濟學家目前預測 2024 年 GDP 成長率約為 3%，這是自 2023 年經濟衰退以來的重大轉變。

In Mexico, the Presidential election took place this past June. In the run up to the election, increased government spending and stimulus helped bolster demand for our first quarter new enrollment intake cycle which was up 7%.

墨西哥今年六月舉行了總統選舉。在選舉前夕，政府支出的增加和刺激措施幫助提振了第一季新入學週期的需求，該需求增加了 7%。

Following the election, there was a pull-back in economic activity that occurred during the third quarter intake. Despite these conditions, we still delivered solid results with new enrollment growth of 4% year-over-year for the third quarter.

選舉後，第三季經濟活動出現回落。儘管有這些條件，我們仍然取得了穩健的業績，第三季新入學人數較去年同期成長 4%。

As the Sheinbaum administration settles in, we are closely observing its early handling of the constitutional reforms as well as key pillars of President Sheinbaum's policy agenda.

隨著謝因鮑姆政府的就職，我們正在密切關注其對憲法改革的早期處理以及謝因鮑姆總統政策議程的關鍵支柱。

We are cautiously encouraged by the early indications of Sheinbaum's policy priorities which include enhanced fiscal discipline, modernization of industrial policies, investments in infrastructure development and public-private collaboration, all of which we believe are important elements to create sustainable growth for the Mexican economy.

我們對謝因鮑姆政策優先事項的早期跡象感到謹慎鼓舞，其中包括加強財政紀律、產業政策現代化、基礎設施發展投資和公私合作，我們認為所有這些都是創造墨西哥經濟可持續增長的重要因素。

The completion of our September and October intake cycle provides us with strong visibility for the remainder of the year.

九月和十月招生週期的完成為我們提供了今年剩餘時間的良好可見性。

Today, we are pleased to announce an increase in our constant currency outlook for 2024 at the mid-point by $15 million for Revenue and $6 million for Adjusted EBITDA. The improved operating performance is expected to be largely offset by currency headwinds from a weaker Mexican Peso allowing us to essentially maintain our full-year outlook on an as reported US dollar basis.

今天，我們很高興地宣布，我們將 2024 年固定匯率展望的收入中位數上調 1500 萬美元，調整後 EBITDA 上調 600 萬美元。預計經營業績的改善將在很大程度上被墨西哥比索疲軟帶來的貨幣阻力所抵消，這使我們基本上維持以美元計價的全年前景。

Our balance sheet remains exceptionally strong and we are well positioned to continue delivering on our commitment to return excess capital to shareholders. Following the completion of the $100 million stock repurchase program announced in February of this year, we introduced a new $100 million authorization program in September.

我們的資產負債表仍然異常強勁，我們有能力繼續履行向股東返還多餘資本的承諾。繼今年 2 月宣布的 1 億美元股票回購計畫完成後，我們於 9 月推出了新的 1 億美元授權計畫。

Assuming completion of this program, we will have returned nearly $3 billion of capital to shareholders since 2019, through a combination of share repurchases, cash distributions, and cash dividends.

假設該計畫完成，自 2019 年以來，我們將透過股票回購、現金分配和現金股利等方式向股東返還近 30 億美元的資本。

That concludes my prepared remarks, and I'm now handing the call over to Rick for the financial overview for the quarter as well as 2024 outlook. Rick.

我準備好的演講到此結束，我現在將電話轉交給 Rick，了解本季的財務概況以及 2024 年的前景。瑞克.

Thank you, Eilif. As a reminder, campus-based higher education is a seasonal business. Although the third quarter is a large intake period from a P&L perspective, it is seasonally low as classes are out-of-session for much of the quarter.

謝謝你，艾利夫。提醒一下，校園高等教育是一種季節性業務。儘管從損益表的角度來看，第三季是一個較大的學期，但由於該季度的大部分時間都在休課，因此該季度處於季節性較低水平。

Let's start with pages 10 and 11 of the supplementary presentation which highlight our operating and financial performance for the third quarter and year-to-date. Third quarter Revenue was $369 million and adjusted EBITDA was $91 million, both metrics were ahead of the guidance we provided in early August.

讓我們從補充簡報的第 10 頁和第 11 頁開始，其中重點介紹了我們第三季和年初至今的營運和財務表現。第三季營收為 3.69 億美元，調整後 EBITDA 為 9,100 萬美元，這兩個指標均優於我們 8 月初提供的指引。

Revenue outperformance resulted from the stronger than expected new enrollment intake in Peru. Adjusted EBITDA upside followed the Revenue trend and was further aided by the deferral of certain costs to the fourth quarter, as we opted to wait for the final intake results before committing those funds.

收入表現優異是由於秘魯的新入學人數強於預期。調整後的 EBITDA 上漲遵循收入趨勢，由於我們選擇在投入這些資金之前等待最終的吸收結果，因此將某些成本推遲到第四季度進一步推動了調整後的 EBITDA 上漲。

On an organic constant currency basis, Revenue for the third quarter was up 9% year-over-year and Adjusted EBITDA increased by 22%, both benefiting slightly from academic calendar timing. Adjusting for timing of the academic calendar, the comparable growth for Revenue and Adjusted EBITDA was 7% and 15% respectively. For the quarter, new and total enrollment volumes increased 6% and 5%, respectively, versus the third quarter of the prior year.

在有機固定貨幣基礎上，第三季營收年增 9%，調整後 EBITDA 成長 22%，兩者均略微受益於校歷時間安排。根據校曆時間進行調整後，收入和調整後 EBITDA 的可比成長率分別為 7% 和 15%。本季度，新入學人數和總入學人數與去年第三季度相比分別增加了 6% 和 5%。

Now moving to year to date performance. The first nine months of 2024, we achieved a 6% increase in Revenue and 7% growth and adjusted EBITDA on an organic constant currency basis versus the prior year period. Adjusting for timing of the academic calendar, the comparable growth for Revenue and Adjusted EBITDA though was 7% and 9%, respectively.

現在轉向今年迄今的表現。2024 年前 9 個月，與去年同期相比，我們的營收成長了 6%，成長了 7%，調整後的 EBITDA 在有機固定貨幣基礎上成長了 7%。根據校曆時間進行調整後，收入和調整後 EBITDA 的可比成長率分別為 7% 和 9%。

Let me now provide some additional color on the performance of Mexico and Peru, starting with page 13. Please note that all comparisons versus prior year are on an organic and constant currency basis.

現在讓我從第 13 頁開始對墨西哥和秘魯的表現提供一些額外的說明。請注意，與上一年的所有比較都是在有機和不變的貨幣基礎上進行的。

Let's start with Mexico, where both our premium and value brand are contributing to Revenue growth and improved levels of profitability. Mexico's new enrollments for the third quarter increased 4% year-over-year, led by growth in fully online programs focused on working adults.

讓我們從墨西哥開始，我們的高端品牌和價值品牌都為收入成長和獲利水準提高做出了貢獻。墨西哥第三季的新入學人數年增 4%，主要是針對在職成年人的完全線上課程的成長。

Upon completion of the intake cycle, we anticipate new enrollment growth of approximately 3% year-over-year, or 4% when adjusted for the impact of campus closures. Pricing for the intake was slightly above our cost of inflation for both traditional face-to-face and fully online products.

招生週期結束後，我們預計新入學人數將年增約 3%，根據校園關閉的影響進行調整後，新入學人數將成長約 4%。傳統面對面產品和完全線上產品的攝取定價均略高於我們的通貨膨脹成本。

Total enrollments were up 7% versus September of the prior year due to the favorable primary intake last fall and growth in new enrollments.

由於去年秋季小學入學情況良好以及新入學人數的成長，總入學人數比去年 9 月增加了 7%。

For the third quarter, Mexico's Revenue increased by 9% compared to the prior year due to strong volume growth, and Adjusted EBITDA increased by 2%. Both metrics were slightly aided by the timing of the academic calendar.

第三季度，由於銷售強勁成長，墨西哥營收較上年同期成長 9%，調整後 EBITDA 成長 2%。校曆的時間安排對這兩個指標都有輕微的幫助。

On a year-to-date basis, Revenue grew 9%, or 10% when adjusted for timing of the academic calendar. This growth was driven by a 9% increase in average total enrollment and 1% of price/mix effect. Inflation based pricing in our face-to-face offerings was offset by faster growth rates in our fully online products.

年初至今，營收成長了 9%，根據校曆時間調整後營收成長了 10%。這一增長是由平均總入學人數增加 9% 和價格/組合效應 1% 所推動的。我們面對面產品中基於通貨膨脹的定價被我們完全在線產品的更快增長所抵消。

Adjusted EBITDA increased 13% year-to-date versus the prior year period, or 18% when adjusted for timing of the academic calendar resulting from Revenue growth and productivity gains. Adjusted EBITDA margin in Mexico were up 130 basis points versus year-to-date prior year when adjusted for timing.

調整後 EBITDA 年初至今較上年同期成長 13%，根據營收成長和生產力提高帶來的校歷時間調整後成長 18%。經時間調整後，墨西哥調整後 EBITDA 利潤率較上年同期成長 130 個基點。

We do anticipate additional margin accretion during the fourth quarter and are pleased with our progress to expand margins in Mexico to above 25% within our targeted mid-range guidance period.

我們確實預計第四季度的利潤率將進一步增加，並對我們在目標中期指導期內將墨西哥的利潤率擴大到 25% 以上的進展感到滿意。

Let's now transition to Peru on slide 14. New enrollments in Peru increased by 12% for the third quarter compared to the previous year, and we expect that growth rate to increase to 16% through completion of the secondary intake cycle.

現在讓我們轉到投影片 14 上的秘魯。秘魯第三季的新入學人數比去年增加了 12%，我們預計隨著中學入學週期的完成，這一增長率將增至 16%。

The strong intake performance was driven by pent-up demand from students who deferred during the previous intake cycle as well as strong growth in fully online as we continue to scale up that model. As a reminder during the primary intake in March, we provided enhanced discounts and scholarships to support our students during a period of macroeconomic challenges.

強勁的招生表現是由上一個招生週期中推遲入學的學生被壓抑的需求以及隨著我們繼續擴大該模式而完全在線的強勁增長推動的。作為三月小學入學期間的提醒，我們提供了更多的折扣和獎學金，以在宏觀經濟挑戰時期為我們的學生提供支持。

For the secondary intake, we were able to scale back those discounts given the macroeconomic recovery. As a result, pricing for our traditional face-to-face product was roughly in line with inflation, but we do expect a mix effect as we grew fully online programs faster than our face to face offerings. Total enrollments were up 3% versus September of the prior year, reflecting softer macroeconomic conditions experienced during the first half of 2024.

對於二次招生，鑑於宏觀經濟復甦，我們能夠縮小這些折扣。因此，我們傳統的面對面產品的定價大致與通貨膨脹一致，但我們確實預計會出現混合效應，因為我們完全在線專案的發展速度快於面對面產品的發展速度。總入學人數比去年 9 月增加了 3%，反映出 2024 年上半年宏觀經濟狀況疲軟。

For the third quarter, the macroeconomic recovery drove Revenue growth of 8% and a 23% increase in adjusted EBITDA. Both metrics benefited slightly from academic calendar timing. On a year-to-date basis, Revenue grew 3% or 4%, when adjusted for timing of the academic calendar driven by a 2% increase in average total enrollment and 2% of price/mix.

第三季度，宏觀經濟復甦推動營收成長 8%，調整後 EBITDA 成長 23%。這兩個指標都略微受益於學術日曆時間表。年初至今，在平均總入學人數增長 2% 和價格/組合增長 2% 的推動下，根據校歷時間進行調整後，收入增長了 3% 或 4%。

Adjusted EBITDA was up 3% versus the prior year-to-date period. Flow through margin on Revenue growth was offset by enhanced discounts and scholarships from the first quarter intake as well as higher levels of bad debt provisioning resulting from the softer macroeconomic conditions in the first half of the year.

調整後 EBITDA 較上年同期成長 3%。收入成長的流量利潤率被第一季入學額增加的折扣和獎學金以及上半年宏觀經濟狀況疲軟導致的壞帳撥備水準提高所抵消。

Adjusted EBITDA margins in Peru were at 39.7% for year-to-date September. We expect margins in the fourth quarter to be down slightly from that level due to the shifting of expense from the third quarter, as discussed earlier.

年初至今 9 月秘魯調整後 EBITDA 利潤率為 39.7%。如同前面所討論的，由於第三季費用的轉移，我們預計第四季度的利潤率將比該水準略有下降。

Let me now transition to discuss our balance sheet position. Laureate ended September with $134 million in cash and $155 million in gross debt for a net debt position of $20 million. Our strong balance sheet and cash flow generation supported our Board's decision to announce a new $100 million stock repurchase program last month.

現在讓我談談我們的資產負債表狀況。截至 9 月份，Laureate 擁有 1.34 億美元現金和 1.55 億美元總債務，淨債務部位為 2,000 萬美元。我們強大的資產負債表和現金流生成支持我們的董事會決定上個月宣布一項新的 1 億美元股票回購計劃。

Moving on to our updated outlook for the year starting on page 18. Following the strong intake results, notably the double-digit new enrollment growth in Peru we are raising our constant currency guidance for full year 2024 at the midpoint by $15 million for Revenue and $6 million for adjusted EBITDA.

從第 18 頁開始，我們將繼續更新今年的展望。繼強勁的招生結果之後，特別是秘魯新入學人數的兩位數增長，我們將 2024 年全年的固定貨幣指導收入中點提高了 1500 萬美元，調整後 EBITDA 提高了 600 萬美元。

As Eilif noted this increased operating performance is expected to largely cover the currency headwinds allowing us to essentially maintain our as reported US dollar full year outlook within a narrower range. The Mexican peso continued to decline during the third quarter and current spot FX rates are now approximately 11% weaker as compared to year-to-date average rates.

正如艾利夫指出的那樣，經營業績的提高預計將在很大程度上抵消貨幣不利因素，使我們能夠基本上將所報告的美元全年前景維持在較小的範圍內。墨西哥比索在第三季持續下跌，目前的即期匯率比年初至今的平均匯率低約 11%。

Based on current spot FX rates, we now expect full year 2024 results to be as follows: Total enrollments to be approximately 470,000 students reflecting growth of approximately 5% versus 2023. Revenues to now be in the range of $1.551 billion to $1.556 billion reflecting growth of 5% on an as reported basis and 7% on an organic constant currency basis versus 2023. Adjusted EBITDA to now be in the range of $447 million to $451 million reflecting growth of 7% to 8% on an as reported basis and 9% to 10% on an organic constant currency basis versus 2023.

根據目前的即期匯率，我們現在預計 2024 年全年結果如下： 學生總數約為 47 萬名，較 2023 年成長約 5%。目前營收在 15.51 億美元至 15.56 億美元之間，與 2023 年相比，按報告數據計算成長 5%，以有機固定匯率計算成長 7%。調整後的 EBITDA 目前在 4.47 億美元至 4.51 億美元之間，與 2023 年相比，按報告數據計算增長 7% 至 8%，以有機固定匯率計算增長 9% 至 10%。

Now moving to the fourth quarter guidance. For the fourth quarter of 2024 we expect: Revenue to be in the range of $408 million to $413 million. Adjusted EBITDA to be in the range of $138 million to $142 million. Our fourth quarter outlook reflects the impact from third quarter cost deferrals as well as timing of other Revenue.

現在轉向第四季指引。對於 2024 年第四季度，我們預計： 營收將在 4.08 億美元至 4.13 億美元之間。調整後的 EBITDA 在 1.38 億美元至 1.42 億美元之間。我們第四季的展望反映了第三季成本遞延以及其他收入時間表的影響。

That concludes my prepared remarks. Eilif, I'm handing it back to you for closing comments.

我準備好的發言就到此結束。Eilif，我將其交還給您以供結束評論。

Thank you, Rick. We believe that we are well positioned to meet our commitments to our stakeholders for 2024 with strong top line growth and continued margin expansion. The strong rebound we experienced in Peru, and solid performance in Mexico during the intake cycles, underscore the strength of our local brands and the resiliency of our business model.

謝謝你，瑞克。我們相信，我們有能力實現 2024 年對利害關係人的承諾，實現強勁的營收成長和持續的利潤成長。我們在秘魯經歷的強勁反彈以及在墨西哥在攝取週期中的穩健表現，凸顯了我們本地品牌的實力和我們商業模式的彈性。

Operator, that concludes our prepared remarks and we're now happy to take any questions from the participants.

接線員，我們準備好的發言到此結束，現在我們很樂意回答參與者的任何問題。

(Operator Instructions)

（操作員說明）

Jeff Silber, BMO capital markets.

Jeff Silber，BMO 資本市場。

Thanks so much. Can we just go back -- can you just quantify the timing impact that you mentioned in terms of Revenues and Adjusted EBITDA between 3Q and 4Q?

非常感謝。我們可以回去嗎？

Yeah. Just to take a step back, Jeff, this is Rick. From a full year basis, we shifted effectively $13 million of Revenue and $11 million of EBITDA from the first half to the second half. We -- essentially in Q3, recovered $4 million of that and rounded up around $4 million a little less than that, in Adjusted EBITDA in the fourth -- in the third quarter. And the remainder of that, which is, the remainder of that will come through in Q4.

是的。退一步來說，傑夫，這是瑞克。從全年來看，我們實際上將 1,300 萬美元的收入和 1,100 萬美元的 EBITDA 從上半年轉移到了下半年。基本上在第三季度，我們收回了其中的 400 萬美元，並在第四季度的調整後 EBITDA 中四捨五入約 400 萬美元，略低於此數字。剩下的部分，即剩下的部分，將在第四季度完成。

Okay. I'm sorry, I was a little bit confused. So, there's not necessarily a timing issue between 3Q and 4Q. You're just revisiting the one half versus the second half timing. Is that correct?

好的。抱歉，我有點困惑。因此，第三季和第四季之間不一定存在時間問題。你只是重新審視上半場與下半場的時間安排。這是正確的嗎？

Yeah, well. $13 million of Revenue and $11 million of Adjusted EBITDA was shifted from first half to second half and will recover that $13 million of Revenue that shifted out of the first half in the second half, $4 million of that Revenue got recovered in Q3.

是的，好吧。 1,300 萬美元的收入和 1,100 萬美元的調整後 EBITDA 從上半年轉移到下半年，並將在下半年收回上半年轉移出的 1,300 萬美元收入，其中 400 萬美元在第三季收回。

I thought it was another, -- (multiple speakers) Forgive me. I was a little confused but I think I got it now. So, it's okay. Maybe we can move on to a macro perspective. You mentioned the new elections in Mexico and then I think you mentioned softening new enrollment after the election. Can we get a little bit more color in terms of what's going on and why that was impacted so quickly?

我以為這是另一個，--（多位發言者）請原諒我。我有點困惑，但我想我現在明白了。所以，沒關係。也許我們可以轉向宏觀視角。您提到了墨西哥的新選舉，然後我想您提到了選舉後新入學人數的減少。我們能否進一步了解正在發生的事情以及為什麼影響如此之快？

This is Eili, Jeff. In an election year, typically, in Latin America, there will be, some additional government spending and some stimulus to drive up the economy in the election year and have more discretionary spend available for the consumers and the voters.

這是艾麗，傑夫。通常，在拉丁美洲的選舉年，將會有一些額外的政府支出和一些刺激措施來推動選舉年的經濟成長，並為消費者和選民提供更多的可自由支配支出。

And so, we saw that in second half of '23 and early '24 that really helped us. We had really strong intake cycles, with a point or two ahead of what we were expecting, what we normally have, as we got a little bit of headwind from that.

因此，我們在 23 年下半年和 24 年初看到這確實對我們有幫助。我們的攝取週期非常強勁，比我們的預期、通常提前了一兩點，因為我們從中遇到了一些阻力。

So, that shifted some demand from that we otherwise would typically have seen in the main intake for September 2024 into the earlier period. And also, there is a sense among consumers that their available spend in the second half of 2024 was a little lighter than what it had been in the prior 6 to 12 months.

因此，這將一些需求從我們通常在 2024 年 9 月的主要攝取中看到的需求轉移到了早期。此外，消費者有一種感覺，他們在 2024 年下半年的可用支出比之前 6 到 12 個月要少一些。

So that, impacted us a little bit. Also, I would say some of the concerns related to the election and the judicial reforms that were implemented post-election caused business sentiment to turn a little softer, -- foreign investment and overall CapEx spend among industry came down, which also made the consumer a little bit more concerned about making large commitments on big ticket items such as education.

所以，這對我們產生了一點影響。此外，我想說，與選舉有關的一些擔憂以及選舉後實施的司法改革導致商業情緒變得有些疲軟——外國投資和行業整體資本支出下降，這也使消費者更關心的是在教育等大項目上做出大量承諾。

Okay. Got it. If I could just sneak one more in and just keeping with the same, we saw an article that last week Ms. Sheinbaum had proposed to create, I think it was 330,000 new University places in Mexico, over the course of her presidency outlook, (technical difficulty) -- this specific schools that she was talking about were non-profit schools. Can we get a little bit more color? I don't know, is it just a proposal? Is that something that will happen? And what if it does? What do you think the impact will be on your school? Thanks.

好的。知道了。如果我能再偷偷地再寫一篇，並保持不變，我們看到了上週 Sheinbaum 女士提議撰寫的一篇文章，我認為在她的總統任期展望期間，墨西哥將新增 330,000 個大學名額，（技術難度）－她所說的這個具體學校是非營利學校。我們可以多一點顏色嗎？我不知道，這只是一個提議嗎？這是會發生的事嗎？如果真的發生了怎麼辦？您認為這會對您的學校產生什麼影響？謝謝。

So this is, this is a proposal and we are waiting to see what will be incorporated of that proposal into the fiscal budget for 2025. And we will have visibility to that in late November, early December. But basically, the proposal is for the Sheinbaum administration to expand access to public capacity.

這是一個提案，我們正在等待該提案的內容將納入 2025 年財政預算。我們將在 11 月底、12 月初看到這一點。但基本上，該提案是讓希因鮑姆政府擴大公共能力的使用範圍。

Correct this, 330,000 seats over a six-year period that represents a 10% increase in public capacity or you know, less than 2% CAGR over the period. And that compares with market growth of about 2.5% to 3%. So, it means that over the last couple of years, the Mexican, public capacity has not really expanded. So, most of the growth in the market has been absorbed by the private sector and I know, she intends to add capacity. Albeit at, slightly slower pace than overall market.

修正一下，六年期間有 33 萬個席位，這意味著公共容量增加了 10%，或者您知道，這段時期的複合年增長率不到 2%。相比之下，市場成長率約為 2.5% 至 3%。因此，這意味著在過去幾年中，墨西哥的公共能力並沒有真正擴大。因此，市場的大部分成長已被私營部門吸收，我知道她打算增加產能。儘管增速略慢於整體市場。

Also, she's saying in her remarks, her administration is saying that they want to focus on underserved communities and rural areas. Which then of course also would somewhat limit the overlap to the Laureate network as we are focused on the larger cities.

此外，她在演講中表示，她的政府表示他們希望專注於服務不足的社區和農村地區。當然，這也會在一定程度上限制與獲獎者網路的重疊，因為我們專注於大城市。

And to illustrate that the new campuses and that they have announced for University Rosario Castellanos accounts for about 50% to 60% of the incremental capacity and those campuses will be in areas where we don't have any presence.

為了說明這一點，他們宣布的羅薩裡奧卡斯特拉諾斯大學新校區約佔新增容量的 50% 至 60%，而這些校區將位於我們沒有任何存在的地區。

(Operator Instructions)

（操作員說明）

Lucas Nagano, Morgan Stanley.

盧卡斯·長野，摩根士丹利。

Hey, good morning, Eilif, Rick, Adam. Thanks for the opportunity here. Two questions. The first one is related to the new guidance if you could provide more color on where the operational upside comes from. And also, second question is related to capital allocation. If you could give some color around the priorities in terms of capital allocation regarding the remaining free cash flow for this year, excluding the new buyback program. Thanks.

嘿，早安，艾利夫、瑞克、亞當。感謝這裡給我的機會。兩個問題。第一個與新指南有關，如果您可以提供更多關於營運優勢來自何處的資訊。另外，第二個問題與資本配置有關。您是否可以對今年剩餘自由現金流（不包括新的回購計畫）的資本分配優先事項進行一些說明。謝謝。

Hi Lucas, good morning. So, this is Rick. Related to guidance, we adjusted as you saw of the range, we shortened the range for both Revenue and adjusted EBITDA. And we ended up taking up the midpoint of Revenues by $15 million, $6 million of adjusted EBITDA.

嗨盧卡斯，早安。所以，這是瑞克。與指導相關，我們根據您所看到的範圍進行了調整，我們縮短了收入和調整後 EBITDA 的範圍。最終，我們的收入中位數增加了 1500 萬美元，調整後的 EBITDA 為 600 萬美元。

What was happening in that was effectively, we flow through the upside of Revenue that we had in the Q3. We outperformed the high by about $6 million and we're just analyzing that for the fourth quarter and taking the guidance up, that's point number one.

實際上，發生的事情是，我們經歷了第三季收入的上升。我們的表現比最高點高出約 600 萬美元，我們只是在分析第四季度的情況並採取上調指導，這是第一點。

On adjusted EBITDA, we took it up as I noted. And then there were two things that happened. One primarily it was the flow through associated with that incremental Revenue. Second, we had around a $10 million of expense timing that shifted from Q3 to Q4 that happened. So that's the explanation behind the guidance.

正如我所指出的，關於調整後的 EBITDA，我們進行了討論。然後發生了兩件事。其中一個主要是與增量收入相關的流量。其次，我們有大約 1000 萬美元的支出時間從第三季轉移到了第四季。這就是指南背後的解釋。

-- And your question on return of capital, we continue to focus on returning capital to shareholders. We have returned $2.8 billion to date. The $100 million program that the Board approved for stock repurchases in February, it was completed in September. Then, in September, the Board approved another $100 million which we will be executing over the coming quarters. So that's the current status, when that $100 million have been executed, we will have returned nearly $3 billion of capital, $1.7 billion in cash distribution and dividends and $1.3 million in stock buybacks since 2019.

——關於資本返還的問題，我們持續關注向股東返還資本。迄今為止，我們已返還 28 億美元。董事會於 2 月批准的 1 億美元股票回購計畫已於 9 月完成。然後，在 9 月份，董事會又批准了 1 億美元，我們將在未來幾季執行該資金。這就是目前的狀況，當這 1 億美元被執行後，自 2019 年以來我們將返還近 30 億美元的資本、17 億美元的現金分配和股息以及 130 萬美元的股票回購。

And I'm showing no further questions at this time. This concludes today's conference call. Thank you for participating. You may now disconnect.

目前我不會再提出任何問題。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。