1Q12 EARNINGS RELEASE
Belo Horizonte, May 14, 2012, Kroton Educacional S.A. (BM&FBovespa: KROT11 and Bloomberg: KROT11:BZ), announces its results for the first quarter of 2012 (1Q12).
- Net revenue in 1Q12 grew 74.7% from 1Q11, basically driven by growth in the number of Postsecondary students, due to the Unopar acquisition and the strong growth in new enrollments at the start of the year. Net revenue posted a organic growth (same-unit) of 28,2% compared to 1Q11.
- Gross income was R$195.7 million, increasing 122.4% from the same period last year. Gross margin reached 57.5%, expanding 12.3 p.p. from the same quarter last year.
- Operating income was R$145.4 million, up 122.1% from 1Q11. Operating margin was 42.7%, up 9.1 p.p. from 1Q11.
- EBITDA was R$126.3 million, growing 142.5% compared to 1Q11. EBITDA margin was 37.1%, expanding 10.4 p.p. from the same quarter last year, corroborating the substantial improvement in the Company’s performance.
- Analyzing Kroton’s stand-alone results, without the impacts from Unopar, EBITDA in 1Q12 would be R$82.7 million, growing 58.8% from 1Q11. EBITDA margin of Kroton ex-Unopar would be 33.1%, expanding 6.4 p.p. compared to 1Q11.
- Net income grew 202.4% compared to 1Q11, reaching R$99.0 million.
- Operating cash flow before capex was R$51.6 million, while after capex was R$33.2 million.
- Record-high new enrollments in the Postsecondary Education, with approximately 115 new students. Total student base surpassed 325,000 students at the end of 1Q12, up 28.8% compared to 4Q11.
- 37,637 students held FIES student loans, representing 33.3% of the total student base in the On-campus Undergraduate business. Of the total number of new enrollments in 1Q12, 47.0% contracted FIES financing.
- During 1Q12, R$27 million was received through three repurchases of FIES certificates by the federal government. In April 2012, another R$27 million was repurchased; further strengthening Kroton’s cash position.
- The acquisition of Unirondon, an institution with 5,470 students in the state of Mato Grosso, strengthened the Company’s position in the On-campus Postsecondary business.
To access the Earnings Release, please, click here.
1Q12 Earnings Conference Call: May 15, 2012
Time: 12:30 p.m. (Brasília)
Time: 11:30 a.m. (New York)
Phone: +1 (412) 317-6776
Replay: +1 (412) 317-0088
Time: 10:30 a.m. (Brasília)
Time: 09:30 a.m. (New York)
Phone: +55 (11) 3127-4971
Replay: +55 (11) 3127-4999
Participants are requested to connect ten minutes prior to the time set for the conference call.
Slides and Webcast: The conference call slides will be available on our website www.kroton.com.br/ir on May 15. The Conference Call will be webcasted simultaneously on the same website, and will remain available after the event.
More information is available at www.kroton.com.br
Carlos Lazar - Director
José Eduardo Szuster - Coordinator
Carolina Igi - Analyst