estácio apr 2 q07 eng
TRANSCRIPT
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2Q07 Earnings Release
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This presentation contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Estácio Participações. These are merely projections and, as such, are based exclusively on the expectations of Estácio Participações’ management concerning the future of the business and its continued access to capital to fund the Company’s business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors and risks disclosed in Estácio Participações’s filed disclosure documents and are, therefore, subject to change without prior notice. Since the Company was constituted only on March 31, 2007, we present, for the sole purpose of comparison, the non-audited pro-forma information for the first half of 2006 and the first quarter of 2007, as if the company's constitution had occurred on January 1, 2006. In addition, certain information was presented adjusted to reflect the payment of taxes at SESES, our largest subsidiary, which, starting in February 2007 and as a result of its transformation into a for-profit company, being subject to the tax laws applicable to other legal entities, notwithstanding the exemptions arising under the University for All Program (PROUNI). The information presented for comparison purposes should not be used as a base for the purpose of calculating dividends, taxes or any other corporate purpose.
Disclaimer
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The largest private post-secondary education institution in Brazil in terms of number of enrolled students
175 thousands students enrolled in 90 undergraduate programs
54 campuses: 38 in Rio de Janeiro and 16 campuses in another 10 estates
Company
Certified by MEC Near its students: work or home
Suitable to all student profiles (region, programs & shift)
Success Formula
Quality Location Price
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Financial Highlights
Main Indicators(R$ million) 2Q07 2Q06 Chg. % 1H07 1H06 Chg. %
210.9 209.7 0.6% 430.3 420.3 2.4%
32.9% 31.8% 1.1 p.p. 38.3% 37.4% 0.9 p.p.
9.9 9.7 2.1% 51.1 44.2 15.6%
Net Revenue
Gross Margin
EBITDA
Adjusted EBITDA
Net Income
Adj. Net Income*
(Debt) Net Cash
9.9 -7.3 n/a 45.2 7.9 472.2%
1.4 0.9 48.5% 27.3 23.7 15.2%
2.5 0.9 165.9% 28.4 23.7 19.8%
41.2 (18.1) n/a 41.2 (18.1) n/a
*excluding IPO expenses
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209.7 210.9
420.3 430.4
2Q06 2Q07 1H06 1H07
Revenue
Net Revenue (R$ million)
0.6%
Gross Revenue (R$ million)
4.1%
Deductions (R$ million)
94.0105.3
2Q06 2Q07
12.1%
Students Enrolled
173,518
174,217
2Q06 2Q07
0.4%
88.2%
9.8%1.5%0.5%
82.3%
8.0%
0.6%9.0%
2.4%Adjusted for taxes
4.1%
194.0208.9
1H06 1H07
7.7%
88.0%
9.5%
1.5%1.0%
83.0%
8.0%
0.8%
8.2%
303.7 316.2
614.3 639.3
2Q06 2Q07 1H06 1H07
Scholarships Taxes
Charges ReturnedDiscounts
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Costs and Gross Profit
- 1.1%
4.3%
- 5.0%
31.2%
Adjusted for taxes
143.2 141.5
263.0 265.4
2Q06 2Q07 1H06 1H07
66,6 69,4
157.3164,9
2T06 2T07 1S06 1S07
0.9% 4.9%
52.969.4
128.5
154.2
2Q06 2Q07 1H06 1H07
20.0%
149.0 141.5
276.3 265.4
2Q06 2Q07 1H06 1H07
- 3.9%
Costs of Services (R$ millions) Gross Profit (R$ millions)
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Expenses
3.5%
66.4 65.1
2Q06 2Q07
1.9%
Adjusted for taxes
Restructuring on going
-0.2%
62.9 65.1
127.0 126.7
2Q06 2Q07 1H06 1H07
General and Administrative Expenses (R$ millions)
General and Administrative Expenses (R$ millions)
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EBITDA and Net Income
9.79.9
2Q06 2Q07
2.1%
4.6%4.7%
0.9
2.5*
2T06 2T07
0.5%
1.5%
(7.3)
9.9
2T06
2T07(3.6%)
4.7%4.3*
2T07
0.6%
Adjusted for PROUNI
166.0%
* excluding IPO expenses
(16.1)
2T06
7.7%
EBITDA (R$ millions) Net Income (R$ millions)
Adjusted for taxes
44.2
51.1
1H06 1H07
15.6%
11.9%10.5%
7.9
45.2
1H06 1H07
2.0%
10.6%
23.7
28.4
1H06 1H07
5.6%6.5%
20.1
1H07
4.7%
19.8%
(12.6)
1H06
377.8%
( 3.1%)
472,2%
Adjusted for taxes Adjusted for
PROUNI
* excluding IPO expenses
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Debt and Capex
Total Debt (R$ million)
31.2
2.0
2Q06 2Q07
-93.7%
Short term Long Term
96.3%
3.7%
93.1%6.9%
Net Cash (R$ million)
(18.1)
41..2
2Q06
2Q07
Capex (R$ million)
11.014.5
1H06 1H07
31.8%
20052004 2006
22.2 22.525.1
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Final Remarks
Following our strategy, we continued commited with
Organic Growth and acquisitions
Capture scale gains and synergies between
operations
Focus
GrowingSynergies Excellence
Continuous improvement
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Questions and Answers