37.7% growth in student base, EBITDA of R$164.0 million, growth of 62.6%, EBITDA margin of 26.3% for a gain of 3.3 p.p. - these are the highlights of the Estacio balance sheet for the third quarter of 2014
RIO DE JANEIRO, Nov. 7, 2014 /PRNewswire/ -- Estacio Participações S.A. – "Estacio" or the "Company" (BM&FBovespa: ESTC3; Bloomberg: ESTC3.BZ; Reuters: ESTC3.SA; OTC: ECPCY), one of the largest private organizations of higher learning in Brazil in the number of students matriculated reports its results for the third quarter of 2014 (3Q14) in comparison with the same period of the year before (3Q13).
Estacio closed the third quarter of 2014 with a total base of 468,900 undergraduate and graduate students, 37.7% above the total registered in the third quarter of 2013, of whom 326,100 were enrolled in on-campus programs, 93,300 in distance learning programs, as well as 49,500 students acquired in the last 12 months. Disregarding acquisitions, we presented solid organic growth of 23.2% in relation to the same period of the year before. The intake of on-campus undergraduate segment came to 67,500 new students, indicative of yet another cycle of record intake, our ninth consecutive cycle.
It should be noted that the number of Estacio campuses increased not only as a result of the acquisitions mentioned above, but also thanks to the opening of two new campuses in the process of expansion of an organic nature in places where we were already operating: the Venda Nova campus in Belo Horizonte (MG), and the Bueno campus, in Goiania (GO).
The base of FIES students came to 121,200 students at the end of 3Q14, an increase of 67.0% over 3Q13, and 9.8% over 2Q14, representing 38.4% of our on-campus graduate student base.
Net operating revenues totaled R$624.8 million in 3Q14, an increase of 42.6%, as a result of organic growth of 23.2% in the student base, the increase in the average on-campus ticket, as well as the integration of the acquired companies, the offer of Pronatec courses and students coming from the Galileo Group through the assisted transfer program.
EBITDA came to R$164.0 million in 3Q14, 62.6% up on 3Q13, with an EBITDA margin of 26.3%, up by 3.3 p.p., mainly due to efficiency gains in SG&A expenses and the consolidation of the acquired companies. Thus, we present yet another consecutive quarter of consistent and sustainable expansion in our operating margins, without highs and lows, which allows us to keep improving qualitative aspects of our business at the same pace of our operational growth.
Provision for doubtful debts came to 1.8% of net revenues this year, a reduction of 2.3 percentage points, which reflects a significant organic improvement under this heading, and the good work of recovery in the receivables portfolio.
Net profits for Estacio totaled R$133.0 million, an increase of 54.1% in relation to the same quarter of the year before, due to the increase of 42.6% in net revenues, as well as efficiency gains in the lines of costs and expenses, which led to major growth of our EBITDA. In the first nine months of 2014, net profits totaled R$344.8 million, an increase of 72.7% in relation to the same period of 2013.
Operating cash flow was positive at R$74.0 million, R$16.8 million above what was registered for the same quarter in 2013. Considering the new schedule for receipt of the buyback of FIES certificates, adjusted operating cash flow totaled R$42.5 million in 3Q14. Meanwhile, Estacio investments made during the quarter totaled R$59.5 million, 82.5% above what was registered in 3Q13, reflecting our initiatives for greater linearization of CAPEX over the course of the year, thus avoiding a concentration of investments in the year's 4th quarter, in comparison with previous fiscal years. Of this amount, R$37.0 million was allocated primarily for the updating of systems, equipment, libraries and laboratories at our units. We also invested in the Academic Model (creation of content and Distance Learning development and production), in the Tablet Project and the acquisition of hardware, and in the development of our plan for revision of the I.T. architecture.
At the end of 3Q14, cash and cash equivalents totaled R$434.9 million. Bank indebtedness of R$290.9 million corresponding to the first issue of Company debentures and the financing lines with IFC, as well as commitments to pay for acquisitions made in recent cycles and taxes payable in installments, constitute Estacio's gross indebtedness, which totaled R$392.3 million at the end of the quarter. Estacio's net cash closed 3Q14 at R$42.6 million.
Contacts
Investor Relations
Flavia de Oliveira
Phone: (21) 3311-9700
E-mail: [email protected]
Website: www.estacioparticipacoes.com.br
Press Office
Cintia Marin
Phone: (21) 3311 -9880
E-mail: [email protected]
SOURCE Estácio Participações S.A.
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