Good day, and thank you for standing by. Welcome to the Third Quarter 2023 Laureate Education Inc., Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Adam Morse, Senior Vice President, Finance. Please go ahead.

Good morning, and thank you for joining us on today's call to discuss Laureate Education's third quarter 2023 results. Joining me on the call today are Eilif Serck-Hanssen, President and Chief Executive Officer, and Rick Buskirk, Chief Financial Officer. Our earnings press release is available on the Investor Relations section of our website at www.laureate.net. We've also posted a supplementary presentation to the website, which we'll be referring to during today's call. The call is being webcast, and a complete recording will be available after the call. I'd like to remind you that some of the information we are providing today, including, but not limited to, our financial and operational guidance, constitutes forward-looking statements within the meaning of applicable U.S. Securities Laws. Forward-looking statements are subject to risks and uncertainties that may change at any time, and therefore, our actual results may differ materially from those we expected. Important factors that could cause actual results to differ materially from our expectations are disclosed in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission, our 10-Q filed earlier this morning, as well as other filings made with the SEC. In addition, all forward-looking statements are based on current expectations as of the date of this conference call, and we undertake no obligation to update any forward-looking statements. Additionally, non-GAAP measures that we discuss, including 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. Let me now turn the call over to Eilif.

Thank you, Adam, and good morning, everyone. Today, we are pleased to report strong financial performance for the third quarter, along with the results from the recently completed primary enrollment intake for Mexico, and the smaller secondary intake for Peru. Third quarter revenue was $362 million, and adjusted EBITDA was $78 million. Both metrics were in line with a guidance range we provided during the second quarter earnings call. For Mexico's primary enrollment intake, new enrollments grew 4%, and that's on top of the 17% increase we achieved during the prior year's intake, which benefited somewhat from the COVID recovery volumes. We are very pleased with the enrollment performance in Mexico and the momentum we are experiencing in that market. We are seeing strong performance across both brands, as well as our face-to-face and fully online delivery modes. Over the past two years, new enrollments in Mexico has increased over 20% during the primary intake. For Peru's smaller secondary intake, new enrollments increased 2% as compared to prior year. As a reminder, Peru's primary intake occurred earlier this year in March, and their next large enrollment cycle will take place during the first quarter of 2024. In Mexico, we are experiencing favorable macroeconomic trends. This year's GDP growth has been upward revised by the IMF to 3.2%, a notable improvement from the initial expectations at the beginning of the year. And this increased growth has been driven really by two factors. First and foremost, increased private consumption, and secondly, from early investments relating to the nearshoring trends. The nearshoring opportunity has contributed to over 40% year-to-date growth in direct foreign investment into Mexico, and Mexico has now overtaken China as the largest trading partner of the United States. We believe that higher education will be a sector that benefits from…

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. Let's start with Pages 10 and 11, which highlight our operating and financial performance for the third quarter and year-to-date. New enrollments and total enrollments were both up 6% for the quarter when compared to the prior year period. Pricing at a brand and degree level was in line with expectations, and when combined with year-to-date volume performance, is covering our implied cost of inflation as anticipated. During the recent intake, we did experience a positive mix impact on average revenue per student versus expectations, primarily driven by Mexico. Revenue in the third quarter was $362 million, and adjusted EBITDA was $78 million. On an organic constant currency basis, revenue for the third quarter increased 8% year-over-year. Adjusted EBITDA declined slightly year-over-year, and was in line with the guidance range we provided for the quarter's performance. The decrease was attributable to the shifting of expenses from the first half of the year, as discussed on our prior call, and additional costs related to lease exits, as we continue to focus on optimization of the real estate footprint in Mexico. When combined with the first half, and still on an organic constant currency basis, our overall performance for the nine months ended in 2023 resulted in revenue growth of 11%, and adjusted EBITDA increase of 10%. 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. Let's start with Mexico. We are very pleased with Mexico's…

Thank you, Rick. We are on track to deliver on our commitment for 2023, with strong topline growth, continued margin expansion, and improved free cash flow. The financial results we have reported for the first nine months of this year demonstrate the resiliency of Laureate’s business model and the strength of our local brands. Operator, that concludes prepared remarks, and we are happy to now take any questions from the participants.

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