RIO DE JANEIRO, May 9, 2014 /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 learning in Brazil in terms of matriculated students is reporting its results for the 1st quarter (1Q14) and for 2014.
Estacio closed the 1st quarter of 2014 with a total base of 394,500 under-grad and grad students, 20.7% above the number registered in the 1st quarter of 2013, of whom 316,100 are matriculated in on-campus programs, and 78,400 in distance learning programs. Setting aside the acquisitions made in 2013, the student base grew by 19.3% organically in relation to the same period of the year before.
The student base at Estacio using FIES remained at 102,100 students, representing 33.7% of the total student base of on-campus undergraduates.
Net operating revenues for Estacio came to R$538.2 million in 1Q14, an increase of 30.2% in relation to 1Q13, due to growth of 20.7% in the student base, and the positive evolution of the average ticket for on-campus students.
During this quarter, EBITDA totaled R$129.4 million, 48.6% greater than that presented for the same period in 2013, with an EBITDA margin of 24.1%, constituting a margin gain of 3.0 percentage points over the year before, chiefly as a result of improved management of costs and expenses, as well as growth of more than 30% in net revenues.
Net profits for Estacio stood at R$125.8 million in 1Q14, an increase of 88.9% over 1Q13, due to the increase in net revenues and efficiency gains in cost and expense lines.
Operating cash flow was positive at R$22.2 million in 1Q14, disregarding delays in auctions for FIES repurchase, representing a growth of R$13.5 million in relation to 1Q13. On the other hand, Estacio's investments for the quarter totaled R$37.2 million, accounting for 6.9% of net revenues, whereas in 1Q13 investments accounted for 3.3%. Of this amount, R$4.9 million was allocated towards the expansion of new units and construction of new classrooms, while the remainder was primarily spent on refurbishment and upgrading of existing units, IT projects and the consolidation of the new academic model.
At the end of 1Q14, cash and cash equivalents came to R$758.1 million. Bank indebtedness of R$280.0 million for the Company's first issue of debentures and financing lines with the IFC, as well as payment commitments for the outstanding balance on tax installments comprised Estacio's gross indebtedness, which stood at R$328.1 million at the end of the quarter. Estacio's net cash closed 1Q14 at R$430.0 million.
In addition to the processing of regular matriculations, in the first months of the year we successfully completed the process of Assisted Transfer for students of Gama Filho and Univercidade conducted by the Ministry of Education after the revocation of the credentials of both institutions. At the end of enrollment cycle for the first semester, 6,700 students from these institutions chose to transfer to Estacio, of whom 1,700 are Medical students.
We will also be taking in new students in the second quarter after completing the enrollment process for Pronatec vocational courses. Estacio won 100% of the seats requested, a total of 24,100 students matriculated, which represents a conversion rate of 81%.
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SOURCE Estácio Participações