EBITDA of Estacio reaches R$ 67.8 million in 3Q12, an increase of 43.4% and margin gain of 3 p.p.

SAO PAULO, Nov. 9, 2012 /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 organizations of higher education in Brazil in terms of the number of enrolled students, has reported its results for the third quarter of 2012 (3Q12) in comparison with the same period for the previous year (3Q11).

Estacio has closed the third quarter of 2012 with a total base of 284,400 students, a growth of 14.8% in relation to the same period of the previous year. Of these 284,400 students, 231,100 are enrolled  for on campus-programs, and 53,300 in distance learning programs.

The record intake of students for the 5th time in a row came to 74,800 new on campus and distance learning undergraduate students in the 3rd quarter, an increase of 21.6% in relation to the same period of the previous year.

At the end of 3Q12, the base of on-campus students at Estacio totaled 218,600 students, 11.0% more than the same period of the previous year. From a same-shops point of view (that is, without taking into account acquisitions for this year), growth was 8.7%. The base of distance learning undergraduate students grew 38.5% over the same period of the previous year, for a total of 51,800 students.

At the close of the 3rd quarter of 2012, the base of students at  Estacio with FIES support '(Student Financing Fund') from the federal government came to 39,500 students, which represents a total of 18.1% of the overall base of on-campus undergraduate students.

Net operating revenues added up to R$349.6 million, an increase of 21.3% in relation to the same period of the previous year, as a result of growth in the students base and the increase in the average ticket for the period.

In 3Q12, EBITDA totaled R$67.8 million, 43.3% above the result for 3Q11, with an EBITDA margin of 19.4%, showing a gain of 3.0 percentage points compared to the year before, chiefly due to improved management of costs and expenses, along with growth of 21.3% in net revenue.

In the third quarter of 2012, net profits came to R$39.8 million, an increase of 28.0% over the same period of the previous year, mostly as a result of the 43.3% increase in EBITDA, which offset the increase in financial expenditures as a result of debt service contracted over the course of 2011. With this, Profit per Share went up from R$0.38 to R$0.48, representing a 28% increase over the 3rd quarter of 2011, reflecting our ability to generate good returns for our shareholders.  

Operating Cash Flow was quite positive, with generation of operating cash of R$67.6 million for the period. Our days receivables continue to improve as our management model responds to our requirements and our action plans become reality, while other variables of cash flow also continue to show gains.

Estacio Investments in 3Q12 were R$62.5 million, 158.3% greater than the same period of the previous year, mainly as the result of expenditures on acquisitions in this quarter (R$38.9 million), which did not occur in the same period last year.  In addition, nearly R$3.7 million were invested in the Academic model project (building content and development and production for distance learning); R$3.8 million for Project Tablet; and R$2.3 million for the purchase of hardware and licenses for the development of a project to review IT architecture, which seeks to replace our legacy academic systems and also to upgrade our hardware for the growth envisioned by Estacio. Investments in projects for expansion, revitalization and improvements of units totaled R$0.9 million in 3Q12, and included the investments made in units to be opened in the future.

In this quarter Estacio announced two more acquisitions: FARGS, in Porto Alegre (RS), and Uniuol, in Joao Pessoa (PB), which, together with the acquisitions of the Universities SEAMA (AP), iDez (PB) and Sao Luis (MA), carried out in the first half of this year, served to reinforce our positioning to expand our presence and our brand nationally.

At the end of September 2012, Company Cash added up to R$183.8 million, conservatively applied in fixed income instruments, referenced to the CDI, in federal government bonds and certificates of deposit from first class national banks.

Contacts 
Investor Relations 
Flavia Oliveira – Manager of Investor Relations 
Phone: (21) 3311-9789 
E-mail: [email protected] 
Website: www.estacioparticipacoes.com 
Twitter: http://twitter.com/estacio_ir

Press Office 
Cintia Marin 
Phone: 21 3311 -9880 
E-mail: [email protected]

SOURCE Estacio Participacoes S.A.