EBITDA INCREASES 25%, TOTALING R$389 MILLION IN 2014

Transcription

EBITDA INCREASES 25%, TOTALING R$389 MILLION IN 2014
São Paulo, March 23, 2015 - Abril Educação S.A. (BM&FBOVESPA: ABRE3) announces its results for the fourth quarter of 2014 (4Q14) and fiscal year
2014. The comments herein refer to the consolidated results in accordance with International Financial Reporting Standards (IFRS) and comparisons are
with the same period in 2013, as indicated.
KEY INDICATORS – CONSOLIDATED
(R$ mm)
QUARTER
4Q14
4Q13
Change(%)
4Q14/4Q13
2014
Net Revenue
511.3
(=) Adjusted EBITDA (current)
181.7
(+) Provision for restructuring (non-recurring)
YTD
2013
Change(%)
2014/2013
468.5
9%
1,265.0
1,036.5
22%
177.1
3%
342.5
311.9
10%
0.0
0.0
-
27.9
0.0
-
(+) Stock-based compensation plan
18.7
0.0
-
18.7
0.0
-
(=) Adjusted EBITDA
200.4
177.1
13%
389.1
311.9
25%
EBITDA Margin (%)
39%
38%
1 p.p.
31%
30%
1 p.p.
(=) Net Income (loss) before minority interest
56.2
63.3
-11%
58.7
78.9
-26%
Operating Cash Generation
94.0
58.2
61%
328.5
231.7
42%
HIGHLIGHTS

On February 9, we announced the acquisition of a controlling interest in Abril Educação by Thunnus
Participações, a company owned by investment funds managed by Tarpon. Thunnus, which in June 2014 had
already acquired 19.91% of the shares held by Abrilpar, in the most recent transaction, acquired another 20.73%
through an amendment to the share purchase and sale agreement, bringing its total interest in the capital stock of
Abril Educação to 40.64%. The price agreed upon was R$12.33 per share, with the deal subject to approval by
Brazil’s antitrust agency CADE. Also due to the transfer of control, Thunnus will submit to the Securities and
Exchange Commission of Brazil (CVM), within 30 days of closing, the documentation for registering a mandatory
Public Tender Offer to non-controlling shareholders for the same price per share paid to the controlling
shareholders.

In the Learning Systems business, which comprises Traditional Learning Systems (Anglo, pH, SER, GEO, Maxi and
Farias Brito), ETB Learning Systems and The Leader in Me (OLEM) program, we ended December 2014 with
931,000 students, an increase of 54% over 2013. The increase is explained by the organic growth of 77,000
students (14%) in the Traditional Learning Systems; the growth of 207,000 students in the ETB Technical Learning
System due to students in the PRONATEC program; and the growth of 42,000 students in the OLEM program, which
in 2014 began including agreements with the public segment.
In 2014, we maintained the academic excellence of our businesses, given our belief that quality of the education
we offer is the sustainable foundation of our growth. The highlights in the period included: (i) Colégio pH obtained
the best average score on the essay section of the ENEM national exam; (ii) Colégio Maxi in Cuiabá was, for the
fifth straight year, the state champion in the essay section and ranked first overall in the ENEM exam; (iii) of the
100 schools in Brazil that adopt learning systems, 30 used the systems of Abril Educação for the latest ENEM exam,
with Anglo being the Learning System with the most schools placing in the top 100; (iv) largest approval rate of
print and digital books for the 2015 National Textbook Program (PNLD). Anglo brand has remained at the top in
college acceptance rates in the country for 65 years. In São Paulo, 51% of the students accepted in the medical
school (University of São Paulo Pinheiros) came from the Anglo System; in Rio de Janeiro, 360 of the students
accepted at the State University of Rio de Janeiro (UERJ) studied at Colégio pH; and 99 of the students accepted
at the Mathematics and Statistics Institute (IME) and the Technological Institute of Aeronautics (ITA) studied at
Farias Brito. Farias Brito also had 172 of its students accepted in the medical schools of top universities in the
North and Northeast, including first place in the federal universities UFBA, UFCA and UFC Sobral. Colégio Sigma
from Brasília had 143 students accepted and placing first at UnB, while Colégio Maxi (a partner of the Maxi System)
placed first in the medical school at UEL.

Operating cash generation was R$94.0 million, compared to R$58.2 million in 4Q13. This positive result is due to:
(i) the seasonality of the Publishing business, which receives in December the first installment from sales under
the National Textbook Program (PNLD); and (ii) the higher volume of receivables in Learning Systems and Wise Up
due to the maturation of its receivables portfolio. In 2014, operating cash generation grew by 42%, or R$96.8
million, to R$328.5 million, from R$231.7 million in 2013. Note that to date 92% of the total amount under the
2015 PNLD program has already been incorporated into the Company's cash position.
1

Net revenue increased 9% from 4Q13, to R$511.3 million, and includes the PNLD 2015 revenue of R$245 million
that was fully recognized in the period. In 2014, net revenue amounted to R$1,265.0 million, growing 22% over
2013. On a comparable basis, i.e., excluding the R$131.7 million associated with the recent acquisitions (Grupo
Ometz, Sigma, Motivo), net revenue posted organic growth of 10%.

In 4Q14, we recognized an expense of R$18.7 million related to the stock-based compensation plan approved in
the Extraordinary Shareholders’ Meeting held on March 19, which reinforces our policy of meritocracy and talent
retention. This new stock-based plan replaces the Stock Option Plan and the Extraordinary Executive Incentive
Plan of the Company. The dilution permitted by this new plan could reach up to 5% of the Company's capital stock
within five years.

In 4Q14, adjusted EBITDA amounted to R$200.4 million, advancing 13% over 4Q13. EBITDA margin expanded by
1 p.p. in the period. In 2014, adjusted EBITDA amounted to R$389.1 million, growing 25% over 2013. Excluding the
nonrecurring effects related to the acquisitions (Grupo Ometz and the schools Sigma and Motivo), EBITDA posted
organic growth of 15% in 2014.

Between December 2014 and March 2015, the Company concluded: (i) the acquisition of 100% of Sigma Centro
Educacional de Águas Claras, in Brasília; (ii) the acquisition of 100% of Colégio Maxi, in Cuiabá; and (iii) the
acquisition of the remaining 49% interest in Red Balloon. The three acquisitions combined came to R$106 million.
The two high schools acquired are a reference in academic quality and achieved excellent scores in the national
ENEM exam in their respective regions. The acquisitions are in line with the Company’s strategic plan to focus on
school growth, selectively, to replicate their quality in the services and products offered to our partners, via the
Learning Systems, Publishers and other complementary products in our portfolio. The growth potential of the
languages for children business, which is further reinforced by the possibility of synergies with the in-school
system at partner schools, led us to anticipate the acquisition of the remaining 49% to December 2014, instead of
in 2017, as initially expected.

On February 8, due to the acquisition of a controlling interest in Abril Educação by Tarpon, the Board of
Directors nominated Eduardo Silveira Mufarej to serve as Chief Executive Officer. On the same date, the Company
implemented a new administrative structure encompassing two operations: Basic Education and Languages for
Adults. Mario Ghio Júnior was nominated Chief Executive Officer responsible for the Basic Education operations,
which includes publishing, learning systems, school operations and Red Balloon, and Marcelo Bruzzi remains the
Chief Executive Officer of the languages for adults operations. The new structure also has three business support
areas: Financial & Investor Relations; Strategy & Innovation; and Culture & Organization.
MESSAGE FROM THE MANAGEMENT
For Abril Educação, 2014 was one of the most important years in its history, with the period marked by the
consolidation and integration of the newly acquired assets and the Company's migration to the Novo Mercado listing
segment of the BM&FBovespa. Another important development, though more recent, in 2015, was the transfer of the
Company's control to Tarpon.
Tarpon, which in June 2014 had acquired a 19.91% interest in Abril Educação, became its controlling shareholder after
acquiring the remaining interest held by Abrilpar for R$12.33 per share, bringing its total interest to 40.64%. The
operation was announced on February 9, 2015 and approved by Brazil’s antitrust agency CADE on March 12, 2015.
The transfer of control produced two effects: the need to offer the same proposal in terms of price per share to the
non-controlling shareholders through a Public Tender Offer; and the reformulation of the organizational structure,
with Eduardo Mufarej, the former CEO of Tarpon, becoming the new CEO. Mario Ghio Júnior became the CEO of all the
Basic Education businesses (Schools, Learning Systems, Publishers and Red Balloon) and Marcelo Bruzzi remained the
CEO of all the Language for Adults businesses (Ometz Group). The new CEO will also be supported by the Financial &
Investor Relations, Strategy & Innovation and Culture & Organization departments.
In 2014, we maintained the good performance of our businesses, especially those with more consistent revenues over
the course of the year. We posted net revenue of R$1,265.0 million, up 22% from R$1,036.5 million in 2013, while
adjusted EBITDA grew 25% to R$389.1 million.
In the Publishers business, the highlight of the year was the recovery in our market share in the National Textbook
Program (PNLD) to 25%, with the sale of 32.0 million books in 2014. The year also saw expansion in Learning Systems,
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with an increase of 14% in the number of students in the traditional brands and 54% overall, including the brands ETB
and OLEM. There was also strong growth in the OLEM system, which was installed in the public school system of an
important city in the São Paulo Metropolitan Area, and in ETB, which as of 2014 has been present in most of the
Institutions of Higher Education participating in the PRONATEC technical education program. Another important
contract closed in 2014 was to supply the SER Learning System to schools in the national network of Industrial Social
Services (SESI), with the potential for expanding sales to the organization's 26 regional offices.
In the Schools segment, 2014 was a year marked by stabilization and the consolidation of our brands, with the
maintenance of the 19 units held by the Company since 2013. The period also demonstrated the feasibility of
investments in the sector, especially those based on the model of Colégio pH in Rio de Janeiro, which has registered
strong growth over the last three years, with the launch of the pH Learning System at owned units, the expansion of
the pH System offering to schools in surrounding areas, and the expansion of the offering of new complementary
products, such as OLEM and the Red Balloon in-school model. Three new units – two under the pH brand and one under
the Motivo brand – were inaugurated in Caruaru, Pernambuco in 2014 and posted excellent results in new enrollments
for 2015 that surpassed the Company's expectations.
In keeping with its policy to expand the network of owned schools via mergers of strategic units, Abril Educação
acquired two new units in the first quarter of 2015: Sigma Centro Educacional de Águas Claras in Brasília, Federal
District; and Colégio Maxi in Cuiabá, Mato Grosso. With a total of approximately 3,000 students, the two institutions
represent important acquisitions to increase the penetration of the Company's Learning Systems in the Midwest
region.
In the Language Schools segment, in 2014, Abril Educação concluded the stabilization of its business Wise Up, starting
a journey towards achieving leadership in the Business English segment. For that, the Company will focus on
investments by franchise owners, on the Go Premium strategy for the student experience and on inaugurating model
schools. In the Red Balloon brand, in 2014, we launched the pilot project for the in-school model, which offers English
courses to children in basic education schools. In December 2014, Abril Educação acquired the remaining 49% interest
in Red Balloon. The Company had acquired the initial 51% in 2012 and signed an option to purchase the remaining
interest by 2017. Given the possibility of synergies with the in-school system at partner schools and the potential for
growth in the language for children business, the acquisition's conclusion was brought forward to 2014.
The Company ended 2014 in an even stronger position to build a promising future for the more than 900,000 students
served by its own Schools and Learning System partners. Building this future in education is a collective task, given
the importance of always working alongside employees and partners who are committed to the ideal of taking the
highest-quality education to all regions of Brazil. Thus, people who dream, are bold, tirelessly seek out innovation
and, most importantly, are passionate about education.
OPERATING PERFORMANCE ANALYSIS
I) Educational Products and Services
Learning Systems
We ended December 2014 with 931,000 students, representing growth of 54% from 2013. The highlights were:
(i) Traditional Learning Systems (Anglo, pH, SER, GEO, Maxi and Farias Brito), which maintained its growth trajectory,
with the student base expanding 14% to 635,000 at the close of December 2014. On a comparable basis, net revenue
per student advanced 3% to R$430/student, from R$420/student in 2013, despite the passthrough of inflation; the
average ticket was also impacted by strong growth in the public segment, which has lower average tickets than the
private segment, and by the growth of the Maxi brand, which also has lower average tickets; (ii) The ETB Technical
Learning System with 249,000 students, including the openings obtained for PRONATEC students; and (iii) The Leader
in Me (OLEM) with 48,000 students, representing significant growth from 2013 (+42,000), due to the signing of new
agreements in both the public and private segments.
Number of Students
4Q14
Change
(%)
4Q13
Traditional Learning Systems
635
558
14%
Technical Learning System (ETB)
249
42
489%
48
6
721%
931
606
54%
The Leader in Me (OLEM)
Total Students
3
Publishers
In the private segment, book
sales remained virtually stable at
2.2 million in 4Q14, compared to
2.1 million in 4Q13. In 2014, we
sold 5.0 million books, 30% fewer
than in 2013. The reduction is
explained by the non-recurring
sale of 1.7 million books to the
Foundation
for
Educational
Development (FDE-SP). Excluding this effect, volumes declined by 0.4 million books in 2014, which was more than
offset by a 10% increase in average ticket due to the higher share of premium collections.
In the public segment, the Publishers registered increases of 7% in 4Q14 and 8% in 2014 in the number of books sold,
which amounted to 32.1 million and 34.0 million, respectively. The volume growth registered in the period reflects
the good performance in the 2015 National Textbook Program (PNLD), in which a total of 32.0 million books were sold.
II) Schools and Preparatory Courses
The Schools and Preparatory Courses business (Anglo, pH,
Motivo and Sigma) ended 4Q14 with 25,200 students enrolled
at 19 units, representing a decrease of 2%, due to the
reduction in new enrollments at preparatory courses
compared to 2013.
In the Schools segment (excluding preparatory courses),
growth on a comparable basis was unchanged from the rate in
3Q14, of 3%, increasing from 12,800 to 13,200 students. On a
comparable basis, the average ticket in the Schools segment
increased 9%. In the Preparatory Courses segment, which has
a different dynamic than the Schools segment, the student base contracted by 7%, which was offset by a 17% increase
in the average ticket due to the price increases implemented and the effects from the mix of courses offered.
III) Language Courses
The Language schools (Red Balloon and Grupo Ometz)
ended December with 83,300 students enrolled at 393
units.
Red Balloon contributed with 15,300 students at 8 own
units and 40 franchises, which already includes the
opening of 15 new units in 2014. Compared to 4Q13, the
number of students and franchises in the quarter grew by
11% and 45%, respectively.
At the close of 4Q14, Grupo Ometz had 68,000 students
enrolled, an increase of 7% compared to 2013, and 345
franchisees, a decrease of 8% in the total number of
franchise units. As a result, the number of students per
franchise unit increased by 16% in 4Q14 compared to
4Q13. The Grupo Ometz brands sold 7,900 teaching
material kits in 4Q14, or 7% less than the 8,500 in 4Q13.
New enrollments in 4Q14 came to 12,500, virtually stable
from the year-ago period (12,600). In 2014, the number of
kits sold came to 46,200, a decrease of 2%, while new enrollments advanced 1% to 66,200. The performance of Grupo
Ometz, which proactively seeks to capture enrollments on a daily basis, was impacted by the lower number of
business days in a World Cup year and the new Management as of September 2014, which brought changes to the
business vision and strategic focus.
4
FINANCIAL PERFORMANCE ANALYSIS
I) Abril Educação Consolidated
QUARTER
Change(%)
YTD
Change(%)
(R$ mm)
4Q14
4Q13
4Q14/4Q13
2014
2013
2014/2013
Net Revenue
511.3
468.5
9%
1,265.0
1,036.5
22%
(208.2)
(170.8)
22%
(413.1)
(325.6)
27%
303.1
297.7
2%
851.9
710.9
20%
(-) Cost of goods sold (COGS)
(=) Gross Profit
Gross margin (%)
(-) Selling, general and administrative expenses
(=) Operating income (loss)
Operating Margin(%)
(-) Financial Result
(=) Net Income (loss) before shareholding
59%
64%
-5 p.p.
67%
69%
-2 p.p.
(185.0)
(175.1)
6%
(645.3)
(504.0)
28%
118.1
122.7
-4%
206.6
207.0
0%
23%
26%
-3 p.p.
16%
20%
-4 p.p.
(37.1)
(22.7)
63%
(108.1)
(61.7)
75%
81.0
100.0
-19%
98.5
145.3
-32%
(-) Equity income
1.5
0.0
0%
1.3
0.0
0%
(=) Net Income (loss) before income tax &social contribution
82.5
100.0
-18%
99.8
145.3
-31%
(26.3)
(36.6)
-28%
(41.2)
(66.4)
-38%
56.2
63.3
-11%
58.7
78.9
-26%
(1.5)
(2.9)
-47%
(9.8)
(6.2)
58%
54.6
60.4
-10%
48.9
72.7
-33%
(-) Income tax and social contribution
(=) Net Income (loss) before minority interest
(+) Non-controlling interest
(=) Net Income (loss) after minority interest
11%
13%
-2 p.p.
4%
7%
-3 p.p.
Net Margin (%)
118.1
122.7
-4%
206.6
207.0
-0.2%
(+) Depreciation and Amortization
21.2
25.4
-17%
78.4
61.4
28%
(+) Amortization of publishing investment
42.4
29.0
46%
57.5
43.6
32%
(=) Adjusted EBITDA (current)
181.7
177.1
3%
342.5
311.9
10%
(+) Provision for restructuring (non-recurring)
0.0
0.0
-
27.9
0.0
-
18.7
0.0
-
18.7
0.0
-
(=) Adjusted EBITDA by restructuring and stock plan
200.4
177.1
13%
389.1
311.9
25%
39%
38%
1 p.p.
31%
30%
1 p.p.
EBITDA Margin (%)
Net Revenue
Net revenue increased 9% from 4Q13 to R$511.3 million, with this figure including the revenue from the 2015 PNLD of
R$245 million that was fully recognized in the period. In 2014, net revenue amounted to R$1,265.0 million, up 22%
over 2013. On a comparable basis, i.e., excluding the R$131.7 million associated with the recent acquisitions (Grupo
Ometz, Sigma, Motivo), net revenue posted organic growth of 10%.
On a comparable basis: (*) Excludes the effects from acquisitions: Grupo Ometz, Motivo and Sigma (2014: R$131.7 million); anticipation of
Learning Systems (4Q14: R$2.2 million) and ETB Schools effect (2013: R$3.2 million).
5
Cost of Goods Sold (COGS)
Consolidated COGS in 4Q14 advanced 22% to R$208.2 million, with gross margin of 59%, down 5 p.p., mainly due to
the higher COGS at Publishers, which is explained by: (i) the investment in digital content for the 2015 PNLD, without
a corresponding net revenue in 2014; (ii) the investment in publishing for the government program Education for Youth
and Adults (EJA); and (iii) the higher amortization in the Publishers segment, due to the change in criteria for the
production of books for the private segment, which optimized production and reduced inventory levels.
In 2014, COGS increased 27% to R$413.1 million. In 2014, we fully recognized the costs related to the acquisitions
made in 2013 (Grupo Ometz, Schools Motivo and Sigma). Excluding these events, COGS in 2014 increased 15%, with
gross margin contraction of 2 percentage points.
On a comparable basis: (*) Excludes the effects from acquisitions: Grupo Ometz, Motivo and Sigma (2014: R$42 million); anticipation of Learning
Systems (4Q14: R$0.2 million) and ETB Schools effect (2013: R$1.9 million).
Selling, General and Administrative (SG&A) Expenses
In 4Q14, we recognized an expense of R$18.7 million related to the stock-based compensation plan approved in the
Extraordinary Shareholders’ Meeting held on March 19, which reinforces our policy of meritocracy and talent
retention. This new stock-based plan replaces the Stock Option Plan and the Extraordinary Executive Incentive Plan of
the Company. The dilution permitted by this new plan could reach up to 5% of the Company's capital stock within five
years.
Total expenses in 4Q14 amounted to R$185.0 million, increasing 6% from 4Q13, mainly due to the recognition of
expenses related to the Company's new stock-based compensation plan.
In 2014, expenses amounted to R$645.3 million, 28% higher than in 2013. This amount includes: (i) the recognition of
the provision for restructuring, as previously announced in 2Q14, (R$27.9 million); (ii) the expenses related to the new
stock-based compensation plan (R$18.7 million); (iii) the incremental expenses associated with the acquired
businesses (R$57.4 million); (iv) the expenses related to moving the Company’s headquarters (R$7.8 million); and
(v) the nonrecurring expenses with consulting services, which did not occur in 2013 (R$6.2 million). Excluding the
aforementioned effects, expenses in 2014 increased 5%.
EBITDA
In 4Q14, adjusted EBITDA amounted to R$200.4 million, up 13% over 4Q13. EBITDA margin expanded by 1 p.p. in the
period. In 2014, adjusted EBITDA amounted to R$389.1 million, growing 25% over 2013, with EBITDA margin of 31%.
Excluding the nonrecurring effects related to the acquisitions (Grupo Ometz and the schools Sigma and Motivo),
EBITDA posted organic growth of 15% in 2014.
6
On a comparable basis: (*) Excludes the effects from acquisitions: Grupo Ometz, Motivo and Sigma (2014: R$29.9 million), Net effect of FIFA marketing
(R$5.0 million); anticipation of Learning Systems (4Q14: R$1.8 million) and ETB Schools effect (2013: R$0.5 million).
Financial Result
The net financial expense amounted to R$37.1 million in the
quarter, compared to the expense of R$22.7 million in 4Q13.
This increase is explained by the growth in the Company’s debt
resulting from its investment strategy and by higher interest
rates than in the year–ago period. In 2014, these accumulated
effects led to an expense of R$108.1 million, compared to an
expense of R$61.7 million in 2013.
4Q14
Financial Results
Finance income
Finance costs
Cash + Investments
Gross Debt
Net Debt
4Q13
2014
2013
(37.1)
10.8
(47.8)
(22.7)
10.2
(32.9)
(108.1)
50.8
(158.9)
(61.7)
36.3
(98.0)
(369.1)
1,272.5
903.5
(360.7)
1,252.3
891.5
(369.1)
1,272.5
903.5
(360.7)
1,252.3
891.5
Dividends
The Board of Directors approved the distribution of R$11.6 million as dividends, which is equivalent to 25% of net
income for the period, after the constitution of a 5% legal reserve, based on the 2014 financial statements. The
proposal for the allocation of net income for 2014 will be submitted for approval to the Shareholders’ Meeting to be
held in April 2015.
Investments
Operating investments amounted to R$114.5 million in 2014, distributed as follows: (i) R$70.5 million to acquisitions
of property and equipment and intangible assets; and (ii) R$44.0 million to the production and updating of content for
the new collections of the Learning Systems and Publishers. Total investments in the period were 26% higher than the
R$90.6 million invested in 2013, mainly due to the new assets acquired in 2014 and the one-time investments related
to moving the Company’s head office in the amount of R$14.6 million. Excluding this non-recurring effect,
investments in 2014 amounted to R$100 million.
Operating Cash Generation
Operating cash generation in 4Q14 was R$94.0 million, compared to R$58.2 million in 4Q13. This positive result is due
to: (i) the seasonality of the Publishing business, which receives in December the first installment from sales under
the National Textbook Program (PNLD); and (ii) the higher volume of receivables in Learning Systems and Wise Up due
to the maturation of its receivables portfolio. Note that to date 92% of the total amount under the 2015 PNLD program
has already been incorporated into the Company's cash position.
Operating cash generation in 2014 increased by 42%, or R$96.8 million, to R$328.5 million, from R$231.7 million in
2013. The positive result was mainly due to: (i) the organic growth in our Learning Systems and Schools businesses; (ii)
the improvements in working capital management; and (iii) the full recognition of the acquired businesses (Wise Up,
Sigma and Motivo).
Cash generation net of interest and tax payments amounted to R$56.5 million in 4Q14, compared to R$38.0 million in
4Q13. In 2014, cash generation net of interest and tax payments increased 9% on the prior year to R$172.1 million.
The main offsetting impact on operating cash generation in relation to the prior year was interest expenses, was due
to the payment on an annual basis of the interest on debt contracted in 2013.
Capital Structure
In December 2014, the consolidated net debt of Abril Educação
amounted to R$903.5 million, composed of gross debt of R$1,272.5
million and cash and cash equivalents of R$369.0 million.
Total gross debt was formed by R$859.6 million in financial debt and
R$413.0 million in debt with the sellers of the acquired companies.
Of this amount, 93% corresponded to long-term debt.
Net Debt
Net Debt / EBITDA*
1,400
1,200
2.7
2.8
2.5
2.6
805.1
860.8
903.5
2Q14
3Q14
4Q14
2.4
2.4
891.5
844.1
4Q13
1Q14
1,000
2.0
800
600
400
0.6
779.6
590.6
200
0
161.2
1Q13
2Q13
3Q13
(*) EBITDA “As Is” in the last 12 months + Wise Up pro-forma, as described in the covenants of the debentures.
7
The increase of R$42.7 million in net debt in the quarter was due to a period of operating cash burn, despite being
mitigated by the receipt of the first installment for the PNLD.
With the aim of restructuring and lengthening the Company's debt maturity profile, in October, bonds were issued by
the subsidiaries Ática, Scipione and Abril Educação Learning Systems to rollover all of the bonds in circulation. The
additional balance of R$120 million in proceeds from the transaction will be used for working capital purposes.
II) Business Highlights in the Quarter
Learning Systems
Learning Systems -R$ mm
Net Revenue
(=) Gross Profit
Gross margin (%)
Adjusted EBITDA
EBITDA Margin (%)
4Q14
41.2
(15.8)
25.4
62%
(20.6)
4.8
0.7
3.7
9.3
23%
4Q13
37.6
(13.5)
24.1
64%
(15.3)
8.8
0.4
2.9
12.2
32%
4Q14/4Q13
10%
17%
6%
-2 p.p.
35%
-46%
86%
28%
-24%
-9 p.p.
2014
303.0
(63.8)
239.3
79%
(88.9)
150.4
2.3
11.6
164.3
54%
2013
239.2
(51.3)
187.9
79%
(63.7)
124.2
1.7
8.1
134.0
56%
2014/2013
27%
24%
27%
0 p.p.
40%
21%
33%
44%
23%
-2 p.p.
Note: Figures for 4Q14 and 4Q13 were adjusted for the effects from brand eliminations. ETB Technical Learning System and OLEM included as from 1Q13.
Learning Systems revenue grew 10% in the quarter, benefitted by: (i) the organic growth in Traditional Learning
Systems (Anglo, pH, SER, GEO, Maxi and Farias Brito); (ii) the recognition of the higher contribution from the ETB
Technical Learning System to serve students under PRONATEC; and (iii) the significant expansion in the student base of
the OLEM program.
The increases registered in the quarter in COGS (+17%) and selling, general and administrative expenses (+35%) are
mainly explained by: (i) the recognition of costs and expenses linked to the ETB Technical Learning System and OLEM;
(ii) the expenses with royalties for the partnership with the Farias Brito Learning System, which varies in accordance
with the revenue; and (iii) the expenses related to expanding the sales and teaching support teams to strengthen and
absorb the expansion of the Learning Systems business replicated in our new units of owned schools.
These advances in costs and expenses contributed to a 9 p.p. contraction in EBITDA margin in the quarter, from 32% in
4Q13 to 23% in 4Q14. The margin compression in the quarter was also due to the strong growth in the ETB Technical
Learning System and the OLEM program, which have lower margins than the traditional Learning Systems.
Publishers
Publishers -R$ mm
Net Revenue
Public
Private
(=) Gross Profit
Gross margin (%)
Adjusted EBITDA
EBITDA Margin (%)
4Q14
351.4
247.4
104.0
(148.5)
202.8
58%
(72.8)
130.0
1.9
38.5
170.4
48%
4Q13
322.4
234.4
88.1
(120.8)
201.7
63%
(70.9)
130.7
1.3
26.5
158.5
49%
4Q14/4Q13
9%
6%
18%
23%
1%
-5 p.p.
3%
-1%
49%
45%
8%
-1 p.p.
2014
467.2
258.4
208.9
(192.8)
274.4
59%
(171.2)
103.2
6.1
45.6
154.9
33%
2013
462.8
248.9
214.1
(166.0)
296.8
64%
(182.1)
114.7
6.9
35.9
157.5
34%
2014/2013
1%
4%
-2%
16%
-8%
-5 p.p.
-6%
-10%
-11%
27%
-2%
-1 p.p.
In 4Q14, revenue from Publishers advanced 9% due to the increase of 6% in the number of books sold, especially in the
public segment as a result of the good performance in the 2015 PNLD.
The 23% increase in COGS in 4Q14 is due to: (i) the investment in digital content for the 2015 PNLD, without a
corresponding net revenue in 2014; (ii) the investment in publishing for the government program Education for Youth
and Adults (EJA); and (iii) the higher amortization in the Publishers segment, due to the change in criteria for the
production of books for the private market, which optimized production and reduced inventory levels. The lower
growth in expenses offset the growth in COGS, with EBITDA margin decreasing by 1 p.p. to 48% in the quarter.
8
Schools and Preparatory Courses
Schools and Prep. Courses -R$ mm
Net Revenue
(=) Gross Profit
Gross margin (%)
Adjusted EBITDA
EBITDA Margin (%)
4Q14
82.9
(35.2)
47.7
58%
(26.4)
21.3
1.5
0.0
22.8
28%
4Q13
69.9
(32.9)
37.0
53%
(26.2)
10.8
1.1
0.0
11.9
17%
4Q14/4Q13
19%
7%
29%
5 p.p.
1%
98%
32%
0%
92%
11 p.p.
2014
307.5
(137.3)
170.1
55%
(98.5)
71.6
5.3
0.0
76.9
25%
2013
212.0
(92.5)
119.6
56%
(78.1)
41.5
3.7
0.0
45.2
21%
2014/2013
45%
49%
42%
-1 p.p.
26%
73%
44%
0%
70%
4 p.p.
Revenue from Schools and Preparatory Courses amounted to R$82.9 million, increasing 19% from 4Q13. This increase is
partially explained by the reallocation of revenue from 3Q14 to 4Q14 in the amount of R$4.0 million, due to the
segregation of amounts related to teaching materials, which previously were incorporated into the monthly tuition
payments at Cursinho Anglo, as informed in the 3Q14 earnings release. Excluding this effect, net revenue increase in
4Q14 was 13%, due to the 17% increase in average ticket, which more than offset the decrease in the number of
students in the period.
Language Courses
Languages -R$ mm
Net Revenue
(=) Gross Profit
Gross margin (%)
Adjusted EBITDA
EBITDA Margin (%)
4Q14
29.9
(4.3)
25.6
86%
(17.5)
8.1
0.6
0.0
8.7
29%
4Q13
32.7
(3.5)
29.2
89%
(14.5)
14.7
(0.7)
0.0
14.0
43%
4Q14/4Q13
-9%
21%
-12%
-3 p.p.
21%
-45%
180%
0%
-37%
-14 p.p.
2014
164.4
(17.1)
147.3
90%
(107.5)
39.9
2.0
0.0
41.8
25%
2013
108.2
(15.6)
92.6
86%
(54.8)
37.8
0.2
0.0
38.0
35%
2014/2013
52%
10%
59%
4 p.p.
96%
5%
940%
0%
10%
-10 p.p.
Net revenue in the Language School business decreased 9% from 4Q13. This result was due to the 11% decrease in
revenue from Grupo Ometz, from R$25.9 million to R$23.0 million, due to contraction in the number of kits sold and
in enrollments. The increases registered in the quarter in COGS and in selling, general and administrative expenses
(+21%) are mainly explained by: (i) the write-off of obsolete materials in inventory at Grupo Ometz and Red Balloon,
which were replaced by the new teaching materials developed during 2014; and (ii) the contracting of consulting
services to support the reorganization of Grupo Ometz.
9
INCOME STATEMENT – BY BUSINESS LINE
4Q14 – Corporate* (R$ million)
Per Business Line -R$ mm
4Q14 Results
Publishers
Learning
Systems
Schools
and Prep. Language
Courses
Net Revenue
351.4
41.2
82.9
(148.5)
(15.8)
(=) Gross Profit
202.8
25.4
Gross m argin (%)
193%
(-) Selling, general and administrativ e expenses
Others
Corporate
Expenses
Elimination
Amortizati Consolidated
on
AE
0.0
511.3
0.0
0.0
(208.2)
(0.1)
0.0
303.1
29.9
6.1
0.0
(35.2)
(4.3)
(4.5)
0.0
47.7
25.6
1.6
0.0
25%
77%
45%
18%
...
4%
...
59%
(72.8)
(20.6)
(26.4)
(17.5)
(2.4)
(31.0)
0.1
(14.3)
(185.0)
130.0
4.8
21.3
8.1
(0.9)
(31.0)
0.0
(14.3)
118.1
1.9
0.7
1.5
0.6
1.3
0.8
0.0
14.3
21.2
38.5
3.7
0.0
0.0
0.2
0.0
0.0
0.0
42.4
170.4
9.3
22.8
8.7
0.7
(30.2)
0.0
0.0
181.7
(+) Prov ision for restructuring (non-recurring)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
18.7
0.0
0.0
18.7
170.4
9.3
22.8
8.7
0.7
(11.5)
0.0
0.0
200.4
48%
23%
28%
29%
11%
...
0%
...
39%
(+) Amortization of publishing inv estment
(=) Adjusted EBITDA
EBITDA Margin (%)
(0.1)
4Q13 – Corporate* (R$ million)
4Q13 Results
Publishers
Learning
Systems
Schools
and Prep. Language
Courses
Others
Corporate
Expenses
Elimination
on
AE
Net Revenue
322.4
37.6
69.9
32.7
15.5
0.0
(9.5)
0.0
468.5
(120.8)
(13.5)
(32.9)
(3.5)
(9.7)
0.0
9.5
0.0
(170.8)
(=) Gross Profit
201.7
24.1
37.0
29.2
5.9
0.0
0.0
0.0
297.7
Gross m argin (%)
188%
31%
118%
394%
68%
...
0%
...
64%
(70.9)
(15.3)
(26.2)
(14.5)
(1.9)
(21.7)
0.0
(24.6)
(175.1)
130.7
8.8
10.8
14.7
3.9
(21.7)
0.0
(24.6)
122.7
1.3
0.4
1.1
(0.7)
(1.2)
(0.0)
0.0
24.6
25.4
26.5
2.9
0.0
0.0
(0.4)
0.0
0.0
0.0
29.0
158.5
12.2
11.9
14.0
2.4
(21.7)
0.0
0.0
177.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
158.5
12.2
11.9
14.0
2.4
(21.7)
0.0
0.0
177.1
49%
32%
17%
43%
15%
...
0%
...
38%
(=) Adjusted EBITDA
EBITDA Margin (%)
4Q14 vs. 4Q13 – Change (%)
Per Business Line -R$ mm - Changes %
4Q14 vs 4Q13
Publishers
Learning
Systems
Schools
and Prep. Language
Courses
Corporate
on
AE
...
-99%
...
9%
21%
-53%
...
-100%
...
22%
-12%
-73%
...
...
...
2%
-50 p.p.
...
4 p.p.
...
-5 p.p.
9%
10%
-9%
23%
17%
7%
(=) Gross Profit
1%
6%
29%
5 p.p.
-6 p.p.
-41 p.p.
-349 p.p.
Expenses
Elimination
-61%
Net Revenue
Gross m argin (%)
19%
Others
3%
35%
1%
21%
27%
43%
...
-42%
6%
-1%
-46%
98%
-45%
122%
43%
...
-42%
-4%
49%
86%
32%
80%
-211%
-1736%
...
-42%
-17%
45%
28%
0%
0%
-163%
...
...
...
46%
(=) Adjusted EBITDA
8%
-24%
92%
-37%
71%
39%
...
...
3%
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
8%
-24%
92%
-37%
71%
-47%
...
...
13%
-1 p.p.
-9 p.p.
11 p.p.
-14 p.p.
45 p.p.
...
...
...
1 p.p.
EBITDA Margin (%)
(*) Consolidated data on a corporate basis and data by business on a managerial basis. Consolidated EBITDA is adjusted by amortization of the investments in publishing and other
non-recurring expenses. In accordance with CVM Instruction 527/12, EBITDA is defined as Earnings Before Interest, Tax (Income and Social Contribution Taxes), Depreciation and
Amortization. On this basis, in accordance with this Instruction, EBITDA amounted to R$148.1 million in 4Q13 and R$139.3 million in 4Q14, and R$268.4 million in 2013 and
R$285.0 million in 2014. Adjusted EBITDA is calculated based on operating income including the amounts related to depreciation and amortization and including amortization of
publishing investments, as well as other adjustments. Pursuant to CVM Instruction 527/12, the Company may opt to report EBITDA excluding the net amounts related to
discontinued operations, as per Technical Pronouncement CPC 31 – Non-Current Assets Held for Sale and Discontinued Operations, and adjusted for other items that contribute to
information on the potential gross cash generation.
10
INCOME STATEMENT – BY BUSINESS LINE
2014 – Corporate* (R$ million)
2014 Results
Publishers
Net Revenue
467.2
(=) Gross Profit
Gross m argin (%)
Learning
Systems
Schools
and Prep. Language
Courses
303.0
307.5
(192.8)
(63.8)
(137.3)
274.4
239.3
170.1
261%
234%
273%
(171.2)
(88.9)
103.2
6.1
Corporate
Expenses
0.0
4.5
0.0
(413.1)
0.0
(1.2)
0.0
851.9
256%
...
58%
...
67%
(107.5)
(19.5)
(103.3)
1.2
(57.6)
(645.3)
71.6
39.9
2.4
(103.3)
0.0
(57.6)
206.6
5.3
2.0
3.4
1.7
0.0
57.6
78.4
11.6
0.0
0.0
0.3
0.0
0.0
0.0
57.5
154.9
164.3
76.9
41.8
6.3
(101.7)
0.0
0.0
342.5
0.0
0.0
0.0
0.0
0.0
27.9
0.0
0.0
27.9
0.0
0.0
0.0
0.0
0.0
18.7
0.0
0.0
18.7
154.9
164.3
76.9
41.8
6.3
(55.1)
0.0
0.0
389.1
33%
54%
25%
25%
22%
...
0%
...
31%
EBITDA Margin (%)
(17.1)
(6.6)
147.3
22.0
257%
(98.5)
150.4
2.3
45.6
AE
1,265.0
(=) Adjusted EBITDA
0.0
Consolidated
0.0
28.6
Elimination Amortization
(5.7)
164.4
Others
2013 – Corporate* (R$ million)
2013 Results
Publishers
Learning
Systems
Schools
and Prep. Language
Courses
Others
Corporate
Expenses
Consolidated
AE
Net Revenue
462.8
239.2
212.0
108.2
28.8
0.0
(14.5)
0.0
1,036.5
(166.0)
(51.3)
(92.5)
(15.6)
(14.6)
0.0
14.5
0.0
(325.6)
(=) Gross Profit
296.8
187.9
119.6
92.6
14.2
0.0
(0.1)
0.0
710.9
Gross m argin (%)
277%
245%
381%
1251%
392%
...
4%
...
69%
(182.1)
(63.7)
(78.1)
(54.8)
(10.5)
(65.2)
0.1
(49.8)
(504.1)
114.7
124.2
41.5
37.8
3.7
(65.2)
0.0
(49.8)
206.9
6.9
1.7
3.7
0.2
(0.8)
(0.0)
0.0
49.8
61.4
35.9
8.1
0.0
0.0
(0.4)
0.0
0.0
0.0
43.6
157.5
134.0
45.2
38.0
2.5
(65.2)
0.0
0.0
311.8
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
157.5
134.0
45.2
38.0
2.5
(65.2)
0.0
0.0
311.8
34%
56%
21%
35%
9%
...
0%
...
30%
(=) Adjusted EBITDA
EBITDA Margin (%)
2014 vs. 2013 – Change (%)
Per Business Line -R$ mm - Changes %
2014 vs 2013
Publishers
Learning
Systems
Schools
and Prep. Language
Courses
Others
Corporate
Expenses
Consolidated
AE
Net Revenue
1%
27%
45%
52%
-1%
...
-61%
...
16%
24%
49%
10%
-55%
...
-69%
...
27%
(=) Gross Profit
-8%
27%
42%
59%
55%
...
2006%
...
20%
-16 p.p.
-11 p.p.
-108 p.p.
-994 p.p.
-136 p.p.
...
54 p.p.
...
-2 p.p.
-6%
40%
26%
96%
85%
58%
1355%
16%
28%
-10%
21%
73%
6%
36%
58%
-100%
16%
0%
-11%
33%
44%
940%
-556%
-3471%
...
16%
28%
27%
44%
0%
0%
-178%
...
...
...
32%
(=) Adjusted EBITDA
-2%
23%
70%
10%
-150%
56%
-100%
...
10%
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
-2%
23%
70%
10%
-150%
-16%
-100%
...
25%
-1 p.p.
-2 p.p.
4 p.p.
-10 p.p.
45 p.p.
...
...
...
1 p.p.
Gross m argin (%)
EBITDA Margin (%)
22%
(*) Consolidated data on a corporate basis and data by business on a managerial basis. Consolidated EBITDA is adjusted by amortization of the investments in publishing and other
non-recurring expenses. In accordance with CVM Instruction 527/12, EBITDA is defined as Earnings Before Interest, Tax (Income and Social Contribution Taxes), Depreciation and
Amortization. On this basis, in accordance with this Instruction, EBITDA amounted to R$148.1 million in 4Q13 and R$139.3 million in 4Q14, and R$268.4 million in 2013 and
R$285.0 million in 2014. Adjusted EBITDA is calculated based on operating income including the amounts related to depreciation and amortization and including amortization of
publishing investments, as well as other adjustments. Pursuant to CVM Instruction 527/12, the Company may opt to report EBITDA excluding the net amounts related to
discontinued operations, as per Technical Pronouncement CPC 31 – Non-Current Assets Held for Sale and Discontinued Operations, and adjusted for other items that contribute to
information on the potential gross cash generation.
11
APPENDIX I
INCOME STATEMENTS
PERIODS ENDED DECEMBER 31
(amounts in thousands of Brazilian real)
2014
1,265,048
(413,145)
851,903
(354,630)
(292,638)
1,959
206,594
50,814
(160,192)
1,315
98,531
1,303
99,834
(41,156)
58,678
Consolidated
2013
1,036,492
(325,559)
710,933
(277,058)
(228,032)
1,115
206,958
36,346
(98,582)
539
145,261
145,261
(66,376)
78,885
48,875
72,705
9,803
58,678
6,180
78,885
Basic earnings per share - R$
0.18738
0.29848
Diluted earnings per share - R$
0.18486
0.29773
Net revenue
Cost of sales and services
Gross profit
Selling expenses
General and administrative expenses
Other income (expenses), net
Operating profit (loss)
Finance income
Finance costs
Foreign exchange variations, net
Profit (loss) before equity in the results of subsidiaries
Equity results
Profit before income tax and
Income tax and social contributions
Profit for the year
Profit attributable to:
Owners of the Company
Participation of Non-Controlling
2014
424
(155)
269
(5)
(4,028)
(139)
(3,903)
4,809
(4,395)
123
(3,366)
54,198
50,832
(1,957)
48,875
Parent
2013
581
(249)
332
(42)
(38,858)
99
(38,469)
10,698
(4,056)
4
(31,823)
104,578
72,755
(50)
72,705
12
APPENDIX II
BALANCE SHEETS
ASSETS
12/31/2014
Parent
12/21/2013
12/31/2014
Consolidated
12/21/2013
841
2,565
15,313
9,284
671
100,271
2,504
12,984
15,432
825
369,069
336,135
189,125
62,173
24,055
360,745
318,343
176,004
33,689
25,714
28,674
132,016
980,557
914,495
-
-
6,889
4,467
10,150
4,739
6
-
5
373
109,979
9,088
12,480
58,440
6,362
3,153
Investments
Intangible assets
Property and equipment
1,585,042
30
1,585,078
1,496,970
303
1,497,651
7,728
2,122,524
106,715
2,379,870
4,434
2,150,177
81,156
2,318,611
Total assets
1,613,752
1,629,667
3,360,427
3,233,106
CURRENT
Cash and cash equivalents
Receivables from customers
Inventories
Taxes recoverable
Dividends receivable
Others
NON-CURRENT ASSETS
Financial assets
Taxes recoverable
Deferred income tax and social
contributions
Judicial deposits
Others Receivables
13
APPENDIX II (cont.)
BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS’ EQUITY
12/31/2014
Parent
12/21/2013
12/31/2014
Consolidated
12/21/2013
17,729
1,531
11,608
30,781
10
17,268
296,593
39,482
6,558
3,604
12,545
232,280
92,194
7,304
15,859
19,032
-
-
43,880
132,375
30,868
48,059
402,662
499,044
10,944
286
12,668
5,518
-
-
369,093
820,085
751
44,649
355,864
671,831
40,236
4,631
4,631
134,260
73,281
15,575
4,917
1,381,506
1,146,730
46,443
52,976
1,784,168
1,645,774
852,868
533,564
257,456
(13,228)
(4,671)
(58,680)
852,868
517,192
220,189
(13,228)
(330)
-
852,868
533,564
257,456
(13,228)
(4,671)
(58,680)
852,868
517,192
220,189
(13,228)
(330)
-
Non-controlling interests
Total Equity
1,567,309
1,567,309
1,576,691
1,576,691
1,567,309
8,950
1,576,259
1,576,691
10,641
1,587,332
Total Liabilities and Equity
1,613,752
1,629,667
3,360,427
3,233,106
CURRENT LIABILITIES
Trade and other payables
Loans and financing
Taxes and contributions payable
Income tax and social contributions payable
Dividends payable
Payables for acquisition of equity
interests
NON-CURRENT LIABILITIES
Trade and other payables
Payables for acquisition of interest
corporate
Loans and Financing
Taxes and contributions payable
Provision for contingencies
Income tax and social contribution
deferred
Total Liabilities
EQUITY
Attributable to owners of the parent
Share capital
Capital reserves
Revenue reserves
Equity valuation adjustment
Treasury shares
Goodwill on capital transaction
14
APPENDIX III
STATEMENTS OF CASH FLOW
2014
Parent
2013
2014
Consolidated
2013
(5,037)
-
(21,709)
-
328,514
(126,326)
(30,102)
232,088
(54,026)
(20,276)
(5,037)
(21,709)
172,086
157,786
(53)
(137,133)
58,646
5,756
-
(150)
(301,681)
17,000
131,992
4
(41,348)
(29,107)
(42,464)
(1,575)
(103,262)
943
36
(15,225)
(22,732)
9,388
(498,298)
(25,000)
(438)
(90,269)
(656)
-
(72,784)
(152,835)
(216,777)
(642,677)
(4,341)
(17,268)
117,267
(330)
(23,783)
-
966,521
(879,101)
(3,956)
(1,470)
562
(4,341)
(17,268)
(7,932)
482,919
(32,432)
(4,388)
117,267
1,341
(330)
(23,783)
(850)
(21,609)
93,154
53,015
539,744
INCREASE ( DECREASE) IN CASH AND CASH EQUIVALENTS
(99,430)
(81,390)
8,324
54,853
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
100,271
841
181,661
100,271
360,745
369,069
305,892
360,745
NET CHANGES IN CASH AND CASH EQUIVALENTS
(99,430)
(81,390)
8,324
54,853
CASH FLOWS FROM OPERATING ACTIVITIES
Cash provided by operations
Interest paid
Income tax and social contribution paid
NET CASH PROVIDED BY ( USED IN )
OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of:
Property and equipment
Intangible assets
Financial Investment
Acquisition of subsidiary in the year, net of acquired cash
Acquisition of subsidiary during the year - Minority Interest
Decrease in cash due to disposal of subsidiary in the year
Payment for acquisition of equity interest
Payment adjustment purchase price
Capital increase in subsidiaries
Capital decrease in subsidiaries
Dividends received
Interest on capital received
Subsidiary sales receipt
Loans received from related parties
Loans granted to related parties
Interest received
NET CASH PROVIDED BY (USED IN)
INVESTMENT ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Funding loans and financing
Payment of loans and financing
Payments and taxes in PAES
Capital Increase (decrease)
Increase (decrease) in non-controlling equity
Treasury stock
Dividends paid
Dividends paid to non-controlling
NET CASH PROVIDED BY ( USED IN ) ACTIVITIES
FINANCING
(615)
1,164
4
With regard to the Cash Flow reported in the Quarterly Information (ITR) for 3Q13, there was a positive reclassification of R$35.0 million in
operating cash generation, with an offsetting entry in cash flow from investments, which was related to the delay in the acquisition of Sigma. In
accordance with accounting standards, this delay was recognized in operating cash flow on the ITR and its effects were offset in the flow of the
fourth quarter, once the company's acquisition was concluded.
15
EARNINGS CONFERENCE CALL
The information will be available on our website at www.abrileducacao.com.br
Conference call in English:
March 24, 2015
10:00 a.m. (Brasília time)
9:00 a.m. (U.S. ET)
Dial-in: +1 (877) 317-6776 (USA only)
+1 (412) 317-6776 (Other countries)
Code: Abril Educação
Webcast: Click here
Replay: +1 (877) 344-7529 (USA only)
+1 (412) 317-0088 (other countries)
Replay Code: 10060231
Participants should connect approximately 10 minutes prior to the start of the conference calls.
Webcast: The audio of the conference calls will be webcast live and remain available after the event.
Replay: The conference call replay will be available for 7 days. To access the replay, please call the
numbers indicated above.
Forward-looking Statements
This document contains forward-looking statements. Such information is based not only on historical data, but also reflects the goals
and expectations of the management of Abril Educação. Words such as "anticipate", "wish", "expect", "foresee", "intend", "plan",
"predict", "project", "aim" and similar terms are intended to identify statements that necessarily involve known and/or unknown
risks. Abril Educação undertakes no liability for any transactions or investment decisions made based on the information contained in
this report.
16

EBITDA INCREASES 25%, TOTALING R$389 MILLION IN 2014

Transcription

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