SAO PAULO, May 10, 2013 /PRNewswire/ -- Estacio Participacoes S.A. – "Estacio" or the "Company" (BM&FBovespa: ESTC3; Bloomberg: ESTC3.BZ; Reuters: ESTC3.SA; OTC: ECPCY), one of the largest private institutions of higher education in Brazil in number of students enrolled, has reported its results for the first quarter of 2013 (1Q13) in comparison with the same period last year (1Q12).
Estacio began 2013 with a new record for student enrollment. There were 117,000 more new on-campus and distance learning college students matriculated in the first quarter of 2013, an increase of 23% compared to the same period last year. With this, Estacio ended the matriculation period for 1Q13 with a total student base of 334,200 undergraduate and graduate students, 19.9% above what was recorded for the same quarter in 2012, of whom 270,500 were matriculated for on-campus programs, and 63,700 in distance learning programs. Not including acquisitions made in 2012, the student base grew organically by 16.8%.
At the end of the registration and renewal period, the student base at Estacio with the Student Financing Fund (FIES – Fundo de Financiamento Estudantil), of the federal government, was 49,000 students, which represents 19% of the total on-campus undergraduate student base. There were also 19,000 students using the University for Everyone Program (ProUni – Programa Universidade para Todos), also of the federal government.
Net operating revenues came to R$413.3, million in 1Q13, an increase of 25.0% compared to the same period last year, as a result of growth of 19.9% in the student base and the upward evolution of the average ticket. This, in turn, grew by 5.8% for the on-campus segment, and 11.6% for distance learning students, strengthening our sustainable policy of price adjustment.
In the first quarter, EBITDA totaled R$87.1 – 50.4% more than what was registered in 1Q12 - with an EBITDA margin of 21.1%, for a margin gain of 3.6 percentage points against the same quarter last year, chiefly due to the improved management of costs and expenses, and to growth of 25.0% in net revenues.
Net income for Estacio came to R$66.6 million in this quarter, an increase of 66.9% over 1Q12, due to the increase in net revenues already noted, and efficiency gains in cost and expense lines, which led to growth of 50.4% in EBITDA. Earnings per share stood at R$0.69, in comparison with R$0.49 in 1Q12, representing an increase of 41%.
Operating cash flow was positive at R$21.7 million in 1Q13, 74% above what was shown for the same quarter last year. On the other hand, Estacio investments for the period totaled R$13.8 million, accounting for 3.3% of net revenues, while for the previous year, investments represented 7.5%. Of this amount, R$8.3, million were invested in updating systems, equipment, libraries and laboratories at Estacio units, while the remaining R$5.5 million were allocated to the development of the Academic Model, the Tablet Project and development of the design for the new IT architecture.
At the end of 1Q13, cash and cash equivalents added up to R$747.5 million, positively impacted by funds raised in the Public Stock Offering that we completed in January. Bank indebtedness of R$278.8 million corresponding to the Company's first issue of debentures, the financing lines with the IFC and capitalization of equipment leasing expenses; as well as commitments to pay for acquisitions made during the year on the order of R$22.8, million; and the balance due on tax installment payments comprise Estacio's gross indebtedness, which totaled R$309.8, million at the end of the quarter. Estacio's net cash position closed the quarter at R$437.7 million.
On April 5, following through on its process of expansion, Estacio acquired the Faculty of Social and Technological Sciences (FACITEC) in the Federal District, for R$ 29 million, with plans for an additional payment of R$ 7 million in the event that FACITEC becomes a University Center by December 31, 2014. Located in the city of Taguatinga, the institution was founded in 2001, and has about 3,600 students and 120 professors distributed in 13 college and 24 graduate programs of study, in addition to extension courses. In 2012, FACITEC was evaluated by the Ministry of Education and Culture (MEC), which gave it an Institutional Assessment (CI – Conceito Institucional) of 4 on a scale of 1 to 5.
In May, Estacio announced the opening of two new units in the state of Rio de Janeiro, in the cities of Teresopolis and Angra dos Reis, which will be offering 8 programs of study, and whose intake of students for the for the second semester of 2013 has already begun.
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SOURCE Estacio Participacoes S.A.