Estácio: 4Q10 and 2010 Conference Call Presentation
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Transcript of Estácio: 4Q10 and 2010 Conference Call Presentation
4Q10 AND 2010 RESULTS
Eduardo Alcalay CEO
March. 2011
Rogério Melzi CFO and Investor Relations Officer
HIGHLIGHTS
2
New Academic Model: more than 70 thousand students received the new textbooks
Among the leaders in distance learning (EAD): more than 26 thousand students in
just 18 months of operations
Structured sales force: 20% increase in enrollments in 2H10
Working capital and cash: comfortable position to invest in business growth
40 years of history and looking to the future
RESULTS’ HIGHLIGHTS
3
Recurring EBITDA margin in line with guidance
Main Indicators (R$ MM)
4Q09 4Q10 Change 2009 2010 Change
Net Revenue 244.4 252.5 3.3% 1.008.8 1.016.1 0.7%
Recurring EBIT 15.0 17.3 15.3% 77.5 94.6 22.1%
Recurring EBIT Margin 6.1% 6.9% 0.7 p.p. 7.7% 9.3% 1.6 p.p.
Recurring EBITDA 25.9 27.0 4.2% 119.1 127.4 7.0%
Recurring EBITDA Margin 10.6% 10.7% 0.1 p.p. 11.8% 12.5% 0.7 p.p.
Net Income 10.7 22.2 107.5% 63.4 80.6 27.1%
Recurring Net Income 12.3 27.7 125.2% 77.1 101.7 31.9%
OPERATING PERFORMANCE – STUDENT BASE
4
196.1 183.8
9.6 26.2
2009 2010
+2.1%
EDUCATIONAL SEGMENT
Distance Learning
On-Campus (In thousand students)
Distance learning student base has 26.2 thousand students in just 18 months of operations
205.7 210.0
Total Student Base
OPERATING REVENUE
5
Average on-campus ticket grew 5.3% in 2010
Net Revenue from distance learning grew 356.7% in the
year
2.4 p.p. decline in Gross Operating Revenue deductions in
4Q10
244.4 252.5
1.008.8 1.016.1
112.8 103.8
450.9 438.2
4Q09 4Q10 2009 2010
OPERATING REVENUE (In R$ million)
1.459.7 1.454.3
357.2 356.3
Net Revenue Deductions Gross Revenue
(R$) 4Q09 4Q10 ∆% 2009 2010 ∆%
Average Ticket
392.8 398.2 1.4% 420.1 420.3 0.0%
On-campus 402.4 432.2 7.4% 424.5 446.9 5.3%
Distance Learning
186.4 161.5 -13.3% 203.8 182.0 -10.7%
COST OF SERVICES
6
Vertical Analysis (% Net Operating Revenue)
4Q09 4Q10 Change 2009 2010 Change
Cash Cost* 62.4% 66.8% 4.3 p.p. 65.1% 65.3% 0.2 p.p.
Personnel and Payroll Charges 40.7% 40.0% -0.7 p.p 42.8% 40.7% -2.1 p.p.
Brazilian Social Security Institute (INSS)
7.0% 8.0% 1.0 p.p. 7.4% 8.2% 0.8 p.p.
Rentals / Real Estate Taxes Expenses
9.3% 12.0% 2.7 p.p. 9.7% 10.1% 0.4 p.p.
Textbooks Materials 0.2% 2.7% 2.6 p.p. 0.1% 1.6% 1.5 p.p.
Others 5..% 4.1% -1.1 p.p. 5.2% 4.8% -0.4 p.p.
* Excluding non recurring and depreciation
SELLING. GENERAL & ADMINISTRATIVE EXPENSES (SG&A)
7
Vertical Analysis (% Net Operating Revenue)
4Q09 4Q10 Change 2009 2010 Change
SG&A* 27.8% 23.2% -4.6 p.p. 24.1% 23.4% -0.7 p.p.
Selling Expenses 8.6% 9.1% 0.5 p.p. 7.3% 8.2% 0.9 p.p.
Provision for Doubtful Debts 8.2% 6.0% -2.2 p.p. 4.3% 4.1% -0.2 p.p.
Marketing 0.4% 3.1% 2.7 p.p. 3.0% 4.1% 1.1 p.p.
General Administrative Expenses* 19.2% 14.1% -5.1 p.p. 16.8% 15.2% -1.6 p.p.
Personnel and Payroll charges 8.8% 8.4% -0.4 p.p. 6.9% 6.9% 0.0 p.p.
Others 10.4% 5.7% -4.7 p.p. 9.9% 8.3% -1.6 p.p.
*Excluding non recurring and depreciation.
BAD DEBTS AND RECEIVABLES
8
Accounts Receivable (R$ mm) 4Q09 1Q10 2Q10 3Q10 4Q10
Gross Accounts Receivable 196.8 208.8 249.9 256.3 201.8
FIES 2.3 4.6 5.4 17.5 15.3
Tuition monthly fees 174.7 179.5 220.0 207.9 168.2
Financed Tuition 19.8 24.7 24.6 30.9 18.3
Cards receivable 2.7 1.1 6.0 11.8 6.9
Checks receivable 16.3 15.5 16.8 16.2 6.9
Fees receivables 0.9 8.2 1.8 2.9 4.4
Provision for bad debts (78.8) (85.1) (102.2) (107.3) (45.4)
Net Accounts Receivable 118.0 123.7 147.7 148.9 156.4
(-) FIES (2.3) (4.6) (5.4) (17.5) (15.3)
Net Accounts Receivable Ex. FIES 115.7 119.1 142.3 131.5 141.1
Net revenue (last twelve months) 1,008.8 1,000.3 1,010.0 1,008.1 1,016.2
Days Receivables Ex. FIES 41 43 51 47 50
EBITDA AND NET INCOME
9
25.9 27.0
119.1 127.4
4Q09 4Q10 2009 2010
10.2%
11.8% 12.5%
12.3
27.7
77.1
101.7
4Q09 4Q10 2009 2010
10.6%
Recurring EBITDA Margin Recurring EBITDA Recurring Net Income
11.0%
7.6%
10.0%
5.0%
EBITDA (In R$ million)
NET INCOME (In R$ million)
Recurring Net Margin
CASH FLOW
10
2010 CASH FLOW
* Financial Result except Operating Financial Result (included in Recurring EBITDA)
(In R$ million)
201.0
9.0
165.4
127.4
1.4
64.8 6.8 3.9
47.9
70.5
21.1
69.930.5
Cash Positive Variation Negative Variation
OUTLOOK 2011
11
Growth with quality and profitability
1
2
3 Tablet: Result of the revolutionary New Academic Model
4
5
Organic Expansion: Inauguration of 5 units
Acquisitions: Opportunities in the pipeline
Quality: Focus on SINAES indicators and student’s satisfaction
Management: Optimization of faculty and infrastructure
IR CONTACTS
12
This presentation may contain forward-looking statements concerning the industry’s prospects and Estácio Participações’ estimated financial and operating results; these are ere projections and. as such. are based solely on the Company management’s expectations regarding the future of the business and its continuous access to capital to finance Estácio Participações’ business plan. These considerations depend substantially on changes in market conditions. government rules. competitive pressures and the performance of the sector and the Brazilian economy as well as other factors and are. therefore. subject to changes without previous notice. We are a holding company. and our only assets are our interests in SESES. STB. SESPA. SESCE. SESPE. SESAL. SESSE. SESAP. UNEC. SESSA and IREP. and we currently hold 99.9% of the capital stock of each of these subsidiaries. Considering that the Company was incorporated on March 31 2007. the information presented herein is for comparison purposes only. on a proforma unaudited basis. relative to the first three months of 2007. as if the Company had been organized on January 1 2007. Additionally. information was presented on an adjusted basis. in order to reflect the payment of taxes on SESES. our largest subsidiary. which from February 2007. after becoming a for-profit company. is subject to the applicable taxation rules applied to the remaining subsidiaries. except for the exemptions arising out of the PROUNI – University for All Program (“PROUNI”). Information presented for comparison purposes should not be considered as a basis for calculation of dividends. taxes or for any other corporate purposes.
Investor Relations:
Flávia de Oliveira
Email: [email protected]
Phone: +55 (21) 3311-9789
Fax: +55 (21) 3311-9722 Address: Av. Embaixador Abelardo Bueno. 199 – Office Park – 6th floor CEP: 22.775-040 – Barra da Tijuca – Rio de Janeiro – RJ – Brazil Website: www.estacioparticipacoes.com/ir