Estacio Apr 3 Q07 Eng
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The document summarizes the 3Q07 earnings results of Estácio Participações. Key highlights include an IPO that raised R$252 million, the acquisition of Radial for R$56 million which expanded operations to São Paulo and Paraná, an increase in campuses to 62 across 12 states, EBITDA of R$34 million with a 15.6% margin, and adjusted net income growth of 58% to R$28 million. The company also ended the quarter with R$264 million in cash.
![We are a holding company, and our only assets are our interests in SESES, STB, SESPA, SESCE and SESPE, and we currently hold 99.9% of the capital stock of each of these subsidiaries. This presentation may contain forward-looking statements concerning the industry’s prospects and Estácio Participações’ estimated financial and operating results; these are mere projections and, as such, are based solely on the Company management’s expectations regarding the future of the business and its continuous access to capital to finance Estácio Participações’ business plan. These considerations depend substantially on changes in market conditions, government rules, competitive pressures and the performance of the sector and the Brazilian economy as well as other factors and are, therefore, subject to changes without previous notice. Considering that the Company was organize d on March 31 2007, the information presented herein is for comparison purposes only, on a proforma unaudited basis, relative to the first nine months of 2006, 2007 and third quarter of 2006, as if the Company had been organized on January 1 2006. Additionally, information was presented on an adjusted basis, in order to reflect the payment of taxes on SESES, our largest subsidiary, which from February 2007, after becoming a for-profit company, will be subject to the applicable taxation rules applied to the remaining legal entities, except for the exemptions arising out of the PROUNI – University for All Program (“PROUNI”). Information presented for comparison purposes should not be considered as a basis for calculation of dividends, taxes or for any other corporate purposes. IR Contacts Investor Relations César Lage (CFO and IRO) – [email_address] Carlos Lacerda – [email_address] Pedro Alvarenga – [email_address] Site: www.estacioparticipacoes.com/ir e-mail: [email_address] Phone.: (55) 21 3410 7250 / 7298 / 7110](https://image.slidesharecdn.com/estacioapr3q07eng-1225134032132916-8/85/Estacio-Apr-3-Q07-Eng-14-320.jpg)
Estacio Apr 3 Q07 Eng
- 3. Highlights Conclusion of the IPO, resulting in R$ 252 million net proceeds ; Entry into the São Paulo Capital and Paraná markets through the acquisition of Radial for R$ 56 million; Increase of 8 units in the quarter, reaching 62 campuses in 12 states; EBITDA of R$ 34 million ( ex-severance expenses ), with a 15.6% margin in the 3Q07. EBITDA margin ex-rentals was 23.4%; EBITDA in the 9M07 reached R$ 83 million, even after the R$ 45 million extra tax burden in the year; Adjusted Net Income up 58% on the 3Q06, reaching R$ 28 million; Cash generation of R$ 22 million in the quarter, and a R$ 264 million cash position;
- 4. UniRadial Acquisition Total Over 40 years of tradition and quality 8 campuses (1 university center since Jan/07) 6 in São Paulo/Capital 1 in ABC Paulista 1 in Curitiba 23 Courses Technology education Undergraduate education Lato sensu post-graduate education Students (thousand) Traditional Undergraduate 4.3 Technology Undergraduate 4.4 10.1 College at Curitiba 1.4 Paraná São Paulo 1 campus Company structure Location SP PR State of São Paulo – #1 Education Market in Brazil 9.1% of Brazilian GDP 1.5 million youth (18 to 24 years old) 5.9% of Brazilian population 9.6% of Post-Secondary education market 1.2 million students enrolled (46% introduction) CITY OF SÃO PAULO 7 campuses
- 6. Average Tuition 415.8 400.0 3.9% Enrolled Students* (thousands) 172.2 172.5 -0.2% Revenue 3Q07 3Q06 Chg.% Net Revenue (R$ million) +6.4% +2.9% taxes 627.2 667.0 9M06 9M07 +7.8% +3.8% taxes 207.0 3Q06 214.8 3Q07 223.1 8.4 21.8 645.1
- 7. EBITDA Margin EBITDA Margin EBITDA Margin: ex-rentals 21.1% 23.4% 3Q07 9M07 12.9% 14.8% 3Q07 9M07 83.2M 31.8M 50.3M 136.5M
- 8. EBITDA EBITDA (R$ million) impostos +50.1% -1.9% -14.6 95.9 55.5 2004 2005 2006 86.6 130.0 85.0* 45.0 9M06 9M07 taxes *Including R$ 1.8M of non recurring expenses
- 9. Net Income 57.9% 315.9% 18.0 28.4 15.7 65.2 3Q06 3Q07 9M06 9M07 Adjusted Net Income* (R$ million) Adjusted Net Income* (R$ million) * Excluding the extraordinary IPO expenses (R$15.5 million in the 3Q07 and R$17.2 million in the 9M07)
- 10. Organic Capex (R$ million) 2005 2004 2006 22.2 22.5 25.1 Capex / Depreciation Capex / Student Investments 78 159 9M06 9M07 71% 9M06 9M07 10.6 27.6 9M06 9M07 96% less than 100%
- 11. Cash Flow Cash Flow (R$ million) Initial Cash EBITDA Financial Result Working Capital Investments Long-Term Chg. Income Tax Capitalization IPO Expenses Final Cash Sub-Total Cash 263.7 43.2 (15.4) 31.8 1.7 2.0 (0.9) 65.2 268.2 (13.5) 0.8 (54.3) Radial Acquisition
- 12. Final Remarks Following our strategy, we continued committed with Organic growth and acquisitions Capture scale gains and synergies between operations Focus Growing Synergies Excellence Continuous improvement
- 14. We are a holding company, and our only assets are our interests in SESES, STB, SESPA, SESCE and SESPE, and we currently hold 99.9% of the capital stock of each of these subsidiaries. This presentation may contain forward-looking statements concerning the industry’s prospects and Estácio Participações’ estimated financial and operating results; these are mere projections and, as such, are based solely on the Company management’s expectations regarding the future of the business and its continuous access to capital to finance Estácio Participações’ business plan. These considerations depend substantially on changes in market conditions, government rules, competitive pressures and the performance of the sector and the Brazilian economy as well as other factors and are, therefore, subject to changes without previous notice. Considering that the Company was organize d on March 31 2007, the information presented herein is for comparison purposes only, on a proforma unaudited basis, relative to the first nine months of 2006, 2007 and third quarter of 2006, as if the Company had been organized on January 1 2006. Additionally, information was presented on an adjusted basis, in order to reflect the payment of taxes on SESES, our largest subsidiary, which from February 2007, after becoming a for-profit company, will be subject to the applicable taxation rules applied to the remaining legal entities, except for the exemptions arising out of the PROUNI – University for All Program (“PROUNI”). Information presented for comparison purposes should not be considered as a basis for calculation of dividends, taxes or for any other corporate purposes. IR Contacts Investor Relations César Lage (CFO and IRO) – [email_address] Carlos Lacerda – [email_address] Pedro Alvarenga – [email_address] Site: www.estacioparticipacoes.com/ir e-mail: [email_address] Phone.: (55) 21 3410 7250 / 7298 / 7110