ABRIL EDUCAÇÃO CONCLUDES MIGRATION TO NOVO MERCADO

ABRIL EDUCAÇÃO CONCLUDES MIGRATION TO NOVO MERCADO
São Paulo, November 10, 2014 - Abril Educação S.A. (BM&FBOVESPA: ABRE3) announces its results for the third quarter of 2014 (3Q14) and first nine
months of 2014 (9M14). 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
3Q14
3Q13
Change(%)
3Q14/3Q13
YTD
9M14
9M13
Change(%)
9M14/9M13
Net Revenue
210.6
178.4
18%
753.7
568.0
33%
(=) Adjusted EBITDA (current)
25.3
24.9
1%
160.8
134.8
19%
(+) Provision for restructuring (non-recurring)
0.0
0.0
-
27.9
0.0
-
(=) Adjusted EBITDA for restructuring provision
25.3
24.9
1%
188.7
134.8
40%
EBITDA Margin (%)
(=) Net Income (loss) before minority interest
Operating Cash Generation
12%
14%
-2 p.p.
25%
24%
1 p.p.
(17.0)
(13.6)
-25%
2.5
15.6
-84%
(3.1)
(2.0)
-55%
234.5
173.5
35%
HIGHLIGHTS

On October 23, the company completed its migration to the Novo Mercado, the listing segment of the
BM&FBOVESPA with the highest corporate governance standards. As of this date, the stock of Abril Educação
started its trading under the ticker "ABRE3," even though the Company has been trading common shares already
since September 26, in accordance with the decision approved by the Extraordinary Shareholders’ Meeting.
Created in 2000, the Novo Mercado segment has 134 companies that are distinguished by the transparency adopted
in their management.

In 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 September with 865,000 students,
up 52% over 3Q13. This increase is explained by the organic growth of 77,000 students (14%) in the Traditional
Learning Systems; the growth of 176,000 students in the ETB Technical Learning System due to the recognition of
second-semester students under the PRONATEC program; and the additional 42,000 students from the OLEM
program, due to the signing of agreements in the public segment to serve 18,000 new students.

Publishers received a total order of 32.0 million books for the 2015 National Textbook Program (PNLD), the
results of which were announced on September 23. The amount of revenue expected from the program in 4Q14,
assuming the invoicing of the full amount in the period, is R$245 million for physical books. Digital books, which
are not included in this order, will be negotiated separately on a date to be announced by the National Education
Development Fund (FNDE). Based on estimates from Abrelivros, the market share in purchases for High Schools
achieved by the Publishing Houses in the 2015 PNLD was 25%.

Operating cash generation in 3Q14 was negative R$3.1 million, compared to negative R$2.0 million in 3Q13. This
result is due to: (i) the seasonality of the Publishing business, which increases inventory levels in the third quarter
to meet the needs of the private market; and (ii) the non-recurring disbursements related to the restructuring
provision announced in 2Q14. In 9M14, operating cash generation grew 35% to R$234.5 million, from R$173.5
million in 9M13.

Net revenue advanced 18% from 3Q13 to R$210.6 million. On a comparable basis, after excluding the R$19.9
million from Colégio Sigma, which was consolidated in October 2013, net revenue advanced 7% from 3Q13. In
9M14, net revenue amounted to R$753.7 million, growing 33% over 9M13. On a comparable basis, excluding
R$133.9 million from the acquisitions (Grupo Ometz, Sigma, Motivo) and the anticipation of orders for Learning
Systems, net revenue posted organic growth of 10% compared to 9M13.

In 2Q14, we recognized a restructuring provision in the amount of R$27.9 million involving non-recurring costs. Of
this amount, R$18.2 million has already been realized, most of which was used for severance payments arising
from adjustments to the new organizational structure.

In 3Q14, adjusted EBITDA amounted to R$25.3 million, advancing 1% over 3Q13. Excluding the acquisition of
Colégio Sigma in the amount of R$3.9 million, EBITDA decreased 16% to R$20.8 million. This result was primarily
affected by the lower contribution from the Publishers business to revenue in the quarter, due to the nonrecognition of revenue from special sales in the private market and to the postponement of costs and expenses
linked to the production of teacher’s books for distribution in the 2015 PNLD, due to the delay in the program's
announcement from 2Q14 to 3Q14. In 9M14, EBITDA adjusted by the restructuring provision amounted to R$188.7
1
million, growing 40% over 9M13. Excluding the non-recurring effects related to the acquisitions and the
anticipation of orders for Learning Systems of R$31.7 million, EBITDA recorded organic growth of 16% in 9M14.

On September 17, we announced the hiring of two executives to join the team at Grupo Ometz (Wise Up, Wise Up
Teens, You Move and You Move Teens): (i) Marcelo Bruzzi, who was appointed CEO of Grupo Ometz (and a VicePresident at Abril Educação); and (ii) Durval Antunes Filho, who was appointed Vice-President of the recently
created Academic Opportunities area of Grupo Ometz, reporting to Marcelo Bruzzi.

On September 24 and November 10, the Board of Directors (BoD) accepted the resignations of Paulo Roberto
Nunes Guedes and Manoel Amorim from their positions on the BoD to which they had been elected in the
Extraordinary Shareholders’ Meeting of August 25, 2014. On November 10, the Board of Directors elected Wolfgang
Stephan Schwerdtle, Head of GIC Brazil Office; and Marcelo Vaz Bonini, Financial Director at Abrilpar, as the new
sitting members to serve until the end of the current term of office. The nomination of the new directors must be
ratified at the next Shareholders' Meeting of the Company to be held.
MESSAGE FROM MANAGEMENT
In 9M14, we posted growth of 33% in net revenue, 40% in Adjusted EBITDA and 35% in operating cash generation
compared to the year-ago period. The acquisitions of Grupo Ometz, Colégio Motivo and Colégio Sigma contributed to
these results, as also did our existing businesses, namely Learning Systems, Publishing and Preparatory Schools and
Courses, which continue on their growth path.
Two important advances marked the management of Abril Educação in 3Q14. The first was the consolidation of the
process to integrate the Learning System and Publishing segments, which began to work more closely together on
publishing and sales activities, in accordance with the project to capture synergies proposed by the mapping process
conducted by the consulting firm Galeazzi that has already been concluded. This integration, which strengthens the
Company's focus on operational efficiency and better allocation of capital, has already identified quality gains in the
sales and editorial areas to support reductions in CAPEX in the editorial area.
Another major achievement was the migration of Abril Educação to the Novo Mercado listing segment of the
BM&FBovespa, which is formed by publicly traded companies with recognized governance practices rooted in
transparency. Joining the Novo Mercado represents a valuable accreditation of an ethical nature in the corporate
world and was made possible by the conversion of all the Company's preferred shares into common shares on
September 26, in accordance with the decision made by the shareholders at the Extraordinary Shareholders' Meeting
and the Special Shareholders' Meeting.
Although typically a period with few events, the third quarter was marked by the strengthening of the Learning
Systems business with the signing of agreements with two municipal governments to include 18,000 students from the
public segment in The Leader in Me (OLEM) program. The Company also inaugurated three new units in the Schools
and Preparatory Courses business (two under the pH brand in Rio de Janeiro and one under the Colégio Motivo brand
in Caruaru, Pernambuco) and installed five in-school projects under the Red Balloon brand in the Language Schools
business. At Grupo Ometz (Wise Up, Wise Up Teens, You Move and You Move Teens), we announced the hiring of the
executives Marcelo Bruzzi, as Language Vice-President, and Durval Antunes Filho, in the recently created position of
Vice-President of Academic Operations. Supported by the diversified experience of these two new executives at the
helm of Grupo Ometz, we expect to capture higher value from this asset and to structure the business to increase
sales, expand margins, improve the academic quality of franchised units and consequently leverage its results.
In the Publishing business, the results of the 2015 National Textbook Program (PNLD), announced in September 23,
determined the sale of 32.0 million books, which was in line with our expectations and represents projected revenue
of R$245 million in 4Q14 and market share of 25% in the PNLD, based on estimates from Abrelivros. Digital books,
which are not included in this amount, will be negotiated separately on a date to be announced by the National
Education Development Fund (FNDE).
As such, we ended September better prepared to face the challenges of capturing value at Grupo Ometz, maintaining
organic growth in our existing businesses and integrating the new acquisitions that we planned to make in 2015. The
results achieved to date are extremely positive, which leaves us comfortable with achieving the growth we targeted
for this year and with starting 2015 on a good note with even more aggressive targets. With our management
2
strengthened by the continuous performance monitoring and by meritocracy, we have every reason to believe in
growing student loyalty in our Learning Systems and Schools, in the attraction of new partners and in growing sales of
our products and services already as of the end of this year.
OPERATING PERFORMANCE ANALYSIS
I) Educational Products and Services
Learning Systems
We ended September 2014 with 865,000 students, representing growth of 52% from a year earlier.
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 September 2014. Net revenue
per student on a comparable basis advanced 3% to R$106.5/student, from R$103.2/student in 3Q13, 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 market, and by the growth of the Maxi brand, which also has lower average
tickets; (ii) The ETB Technical Learning System with 183,000 students at 129 postsecondary institutions and technical
schools, including the openings for PRONATEC students awarded for the second semester of the year; and (iii) The
Leader in Me (OLEM) with 48,000 students enrolled at 119 schools, representing growth of 42,000 students compared
to 3Q13, due to the signing of new agreements in the public segment.
Number of Students
3Q14
3Q13
Learning Systems
(%)
635
558
14%
Technical Learning System (ETB)
183
7
2515%
The Leader in Me (OLEM)
48
6
721%
Total Students
865
571
52%
Publishers
In the private segment, Publishers registered a
decrease in book sales volume of 1.7 million
books in 3Q14 and 2.2 million books in 9M14.
This decrease is explained by the non-recurring
sale of 1.7 million books to the Foundation for
Educational Development (FDE-SP) not being
repeated this year. Excluding this effect,
volume was stable in 3Q14 and decreased by
0.4 million in 9M14.
In the public segment, Publishers registered increases of 1.2 million in 3Q14 and 0.5 million in 9M14 in the number of
books sold, which amounted to 1.3 million and 1.9 million respectively. The volume growth registered in the period
was due to the recognition of certain sales to the government, such as those under the National School Library
Program - PNBE (1.1 million) and additions to the 2014 PNLD.
II) Schools and Preparatory Courses
The Schools and Preparatory Courses business (Anglo, pH, Motivo
and Sigma) ended 3Q14 with 24,800 students enrolled at 19 units,
representing growth of 23% from 2013. On a comparable basis,
including in 3Q13 Colégio Sigma, which was acquired in October
2013, the number of students in the segment fell 2% from 25,200 in
3Q13 to 24,800 in 3Q14, due to the lower number of students in
Anglo's semi-intensive preparatory courses.
In the Schools segment (excluding preparatory courses), growth on a
comparable basis remains the same as the rate in 2Q14, 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 fell by 6%, which was offset by a 6% increase in the average ticket due to the price increases
implemented and the effects from the mix of courses offered.
3
III) Language Courses
The language schools (Red Balloon and Grupo Ometz) ended September
with 86,600 students enrolled at 401 units.
Red Balloon had 14,800 students at 8 own units and 40 franchisees,
which already includes the opening of 15 new units in 2014. Compared
to 3Q13, the number of students and franchises in the quarter grew by
9% and 45%, respectively.
At the close of 3Q14, Grupo Ometz had 71,800 students enrolled, an
increase of 3% compared to 2013, and 353 franchisees, a decrease of
8% in the total number of franchise units. As a result, the number of
students per franchise unit grew by 12% in 3Q14 compared to 3Q13.
The Grupo Ometz brands sold 12,000 teaching material kits in 3Q14, or
2% more than the 11,800 registered in 3Q13. In 3Q14, enrollments
amounted to 16,900, increasing 3% from the year-ago period (16,400).
Chain expansion – Language Schools
In 9M14, a total of 91 new agreements were signed for the opening of franchises, of which: (i) 46 were signed in 1Q14;
(ii) 35 were signed in 2Q14; and (iii) 10 were signed in 3Q14; Of these 10 more-recent new agreements: (i) 2 are for
the Red Balloon brand; and (ii) 8 are for the Wise Up and You Move brands.
Of the 91 new agreements signed in 9M14, 22 have already resulted in the opening of new franchises, 15 of which
under the Red Balloon brand and 7 under the brands of Grupo Ometz.
FINANCIAL PERFORMANCE ANALYSIS
I) Abril Educação Consolidated
Financial Information
QUARTER
3Q14
3Q13
Change(%)
3Q14/3Q13
YTD
9M14
9M13
Change(%)
9M14/9M13
33%
Net Revenue
210.6
178.4
18%
753.7
568.0
(-) Cost of goods sold (COGS)
(68.7)
(43.5)
58%
(204.9)
(154.7)
32%
(=) Gross Profit
141.9
134.9
5%
548.8
413.2
33%
Gross margin (%)
(-) Selling, general and administrative expenses
(=) Operating income (loss)
Operating Margin(%)
67%
76%
-9 p.p.
73%
73%
0 p.p.
(139.5)
(126.4)
10%
(460.3)
(328.9)
40%
2.4
8.5
-72%
88.5
84.3
5%
1%
5%
-4 p.p.
12%
15%
-3 p.p.
(-) Financial Result
(25.1)
(19.4)
29%
(71.0)
(39.0)
82%
(=) Net Income (loss) before shareholding
(22.7)
(10.9)
-309%
17.5
45.3
-61%
(-) Equity income
(=) Net Income (loss) before income tax and social contribution
(-) Income tax and social contribution
(=) Net Income (loss) before minority interest
(+) Non-controlling interest
(=) Net Income (loss) after minority interest
Net Margin (%)
0.6
0.0
0%
(0.2)
0.0
0%
(22.1)
(10.9)
-303%
17.3
45.3
-62%
5.1
(2.7)
89%
(14.8)
(29.7)
50%
(17.0)
(13.6)
-25%
2.5
15.6
-84%
(1.7)
(1.6)
7%
(8.3)
(3.3)
151%
(18.7)
(15.1)
-23%
(5.8)
12.3
-147%
-3 p.p.
-9%
-8%
-1 p.p.
-1%
2%
(=) Operating income (loss)
2.4
8.5
-72%
88.5
84.3
5%
(+) Depreciation and Amortization
19.9
14.0
42%
57.2
36.0
59%
(+) Amortization of publishing investment
3.0
2.4
26%
15.1
14.5
4%
(=) Adjusted EBITDA (current)
25.3
24.9
1%
160.8
134.8
19%
(+) Provision for restructuring (non-recurring)
0.0
0.0
...
27.9
0.0
0%
(=) Adjusted EBITDA by restructuring provision
25.3
24.9
1%
188.7
134.8
40%
EBITDA Margin (%)
12%
14%
-2 p.p.
25%
24%
1 p.p.
Net Revenue
Net revenue advanced 18% from 3Q13 to R$210.6 million. On a comparable basis, after excluding the R$19.9 million
from Colégio Sigma, which was consolidated in October 2013, net revenue advanced 7% from 3Q13. In 9M14, net
revenue amounted to R$753.7 million, growing 33% over 9M13. On a comparable basis, excluding R$133.9 million from
the acquisitions (Grupo Ometz, Sigma, Motivo) and the anticipation of orders for Learning Systems, net revenue
posted organic growth of 10% compared to 9M13.
4
On a comparable basis: (*) Excludes the effects from acquisitions: (3Q14: R$19.9 million), Grupo Ometz, Motivo and Sigma (9M14: R$133.9 million) and
the anticipation of Learning Systems (3Q14: R$0.6 million) and (9M14 R$2.2 million);
Cost of Goods Sold (COGS)
Consolidated COGS in 3Q14 advanced 58% to R$68.7 million, with gross margin of 67%, with this figure including
R$12.7 million related to the acquisition of Colégio Sigma. Excluding this effect, COGS in 3Q14 increased 30% and
gross margin decreased 5 p.p. to 71%. The increase in COGS in the period is primarily explained by the recognition of
costs related to the delay in the announcement of the 2015 PNLD, with no offsetting amounts in revenue.
In 9M14, COGS increased 32% from 9M13 to R$204.9 million. Excluding the effects of acquisitions (Grupo Ometz, Sigma
and Motivo) and the anticipation of costs in Learning Systems of R$42.2 million, COGS grew 6% in 9M14 compared to
9M13, lagging the revenue growth of 10% in the period on the same basis.
On a comparable basis: (*) Excludes the effects from acquisitions: Sigma (3Q14: R$12.7 million), Grupo Ometz, Motivo and Sigma (9M14: R$42 million);
anticipation of Learning Systems (3Q14: R$0.1 million) and (9M14: R$0.2 million).
Selling, General and Administrative (SG&A) Expenses
Total expenses in 3Q14 amounted to R$139.5 million, increasing 10% from 3Q13, due to the higher expenses related to
Colégio Sigma (R$5.2 million). Excluding this effect, total expenses increased 6% in the quarter, in line with inflation.
In 9M14, expenses amounted to R$460.3 million, 40% higher than in 9M13. This increase was due to the recognition of
the restructuring provision announced in 2Q14 (R$27.9 million), the expenses related to the acquired companies
(R$65.3 million), the expenses related to moving the Company’s head office (R$5.2 million) and the expenses related
to consulting services (R$7.2 million). Excluding these effects, expenses in 9M14 increased 8%.
5
EBITDA
In 3Q14, adjusted EBITDA amounted to R$25.3 million, advancing 1% over 3Q13. Excluding the acquisition of Colégio
Sigma in the amount of R$3.9 million, EBITDA decreased 16% to R$20.8 million. This result was primarily affected by
the lower contribution from the Publishers business to revenue in the quarter, due to the non-recognition of revenue
from special sales in the private market and to the postponement of costs and expenses linked to the production of
teacher’s books for distribution in the 2015 PNLD, due to the delay in the program's announcement from 2Q14 to
3Q14. In 9M14, EBITDA adjusted by the restructuring provision amounted to R$188.7 million, growing 40% over 9M13.
Excluding the non-recurring effects related to the acquisitions and the anticipation of orders for Learning Systems of
R$31.7 million, EBITDA recorded organic growth of 16% in 9M14.
On a comparable basis (EBITDA adjusted by restructuring): (*) Excludes the effects from acquisitions: Sigma (3Q14: R$3.9 million) Grupo Ometz, Motivo
and Sigma (9M14: R$29.9 million) Net effect of FIFA marketing (R$5.0 million); anticipation of Learning Systems (3Q14: R$0.5 million) and (9M14: R$1.8
million).
Financial Result
The net financial expense amounted to R$25.1 million in the
quarter, compared to the expense of R$19.4 million in 3Q13. 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.
3Q14
3Q13
9M14
9M13
Financial Results
(25.1)
(19.4)
(71.0)
(39.0)
Finance income
13.1
8.6
40.0
26.2
Finance costs
(38.1)
(28.0)
(111.0)
(65.2)
Cash + Investments
(287.5)
(255.7)
(287.5)
(255.7)
Gross Debt
1,148.3
1,034.5
1,148.3
1,034.5
860.8
778.8
860.8
778.8
Net Debt
Investments
As of September 2014, investments amounted to R$75.7 million, allocated as follows: (i) R$43.2 million to acquisitions
of property and equipment and intangible assets; and (ii) R$32.5 million to the production of digital content for the
PNLD process, new collections and the reformulation and updating of collections and materials of the publishers and
learning systems. Total investments in the period were 32% higher than the R$57.3 million invested in 2013, mainly
due to the new assets acquired in 2013, the production of own collections by Red Balloon and the one-time
investments related to moving the Company’s head office in the amount of R$13.7 million. Excluding this nonrecurring effect, investments in 9M14 amounted to R$62.0 million.
Operating Cash Generation
Operating cash generation in 3Q14 was negative R$3.1 million, compared to negative R$2.0 million in 3Q13. This
result is due to: (i) the seasonality of the Publishing business, which typically has lower revenue in the third quarter of
the year; and (ii) the non-recurring disbursements related to the restructuring provision announced in 2Q14. In 9M14,
operating cash generation increased 35% to R$234.5 million, from R$173.5 million in 9M13. In 9M14, the R$61 million
increase in operating cash is explained: (i) the growth in existing businesses, which accounted for 84% of this surplus,
with the highlight the performance of Learning Systems, Publishers and Complementary Products; and (ii) the full
contribution from the acquired assets (Grupo Ometz, Colégio Sigma and Colégio Motivo), which accounted for 16% of
the increase, despite the payment of installments of the FIFA agreement with Grupo Ometz, as previously disclosed.
6
Cash generation net of interest and tax payments was negative R$48.5 million in 3Q14, compared to negative R$26.5
million in 3Q13. In 9M14, cash generation net of interest and tax payments decreased 3% on the prior year to R$115.5
million. These variations were primarily impacted by semiannual interest payments on the bonds of the publishers
Ática and Scipione issued in September 2013 and by the interest related to the last installment of the Anglo
acquisition.
Capital Structure
Abril Educação ended September 2014 with consolidated
net debt of R$860.8 million, which corresponds to gross
debt of R$1,148.3 million net of cash and cash
equivalents of R$287.5 million.
Total gross debt was formed by R$758.6 million in
financial debt and R$389.7 million in debt with the
sellers of the acquired companies. Of this amount, 83%
corresponded to long-term debt. The increase of R$55.7
million in net debt in the quarter was due to a period of
operating cash consumption that is typical to the third
quarter of the year.
Net Debt
Net Debt / EBITDA*
1,400
1,200
2.7
2.8
2.5
2.4
2.4
891.5
844.1
805.1
860.8
4Q13
1Q14
2Q14
3Q14
1,000
2.0
800
600
400
779.6
0.6
590.6
200
0
161.2
1Q13
2Q13
3Q13
(*) EBITDA “As Is” in the last 12 months + Wise Up pro-forma, as described in the covenants of the debentures.
II) Highlights of Educational Products and Services in the Quarter
Learning Systems
Learning Systems -R$ mm
Net Revenue
(-) Cost of goods sold (COGS)
(=) Gross Profit
Gross margin (%)
(-) Selling, general and administrative expenses
(=) Operating income (loss)
(+) Depreciation and Amortization
(+) Amortization of publishing investment
EBITDA
EBITDA Margin (%)
3Q14
75.9
(15.0)
60.9
80%
(25.3)
35.6
0.7
2.4
38.7
51%
3Q13
58.1
(10.3)
47.9
82%
(17.6)
30.2
0.4
1.8
32.5
56%
3Q14/3Q13
31%
46%
27%
-2 p.p.
44%
18%
60%
34%
19%
-5 p.p.
9M14
261.8
(48.0)
213.8
82%
(68.3)
145.5
1.6
7.9
155.0
59%
9M13
201.6
(37.9)
163.8
81%
(48.4)
115.3
1.3
5.2
121.8
60%
9M14/9M13
30%
27%
31%
1 p.p.
41%
26%
22%
53%
27%
-1 p.p.
Note: Figures for 3Q14 and 3Q13 were adjusted for the effects from brand eliminations. ETB and OLEM included as from 1Q13.
The Learning Systems benefitted in the quarter by: (i) the organic growth in Traditional Learning Systems (Anglo, pH,
SER, GEO, Maxi and Farias Brito) driven by the growth of 77,000 students (+14%); (ii) the recognition of the
contribution from the ETB Technical Learning System to serve students under PRONATEC, which did not occur in 3Q13;
(iii) the significant expansion in the student base of the OLEM program; and (iv) the anticipation of orders from 4Q14
to 3Q14.
The increases registered in the quarter in COGS and in selling, general and administrative expenses (46%) are mainly
explained by: (i) the recognition of costs and expenses linked to the ETB Technical Learning System and OLEM; (ii) the
effects from the anticipations of orders, carrying the respective costs and expenses; (iii) the expenses with royalties
for the partnership with the Farias Brito Learning System, which varies in accordance with the revenue earned; and
(iv) the expenses with the expansion of the sales team to strengthen the Learning Systems business.
These advances in costs and expenses contributed to a 5 p.p. contraction in EBITDA margin in the quarter, from 56% in
3Q13 to 51% in 3Q14.
7
Publishers
Publishers -R$ mm
Net Revenue
(-) Cost of goods sold (COGS)
(=) Gross Profit
Gross margin (%)
(-) Selling, general and administrative expenses
(=) Operating income (loss)
(+) Depreciation and Amortization
(+) Amortization of publishing investment
EBITDA
EBITDA Margin (%)
3Q14
12.4
(16.7)
(4.2)
-34%
(31.5)
(35.7)
1.4
0.6
(33.7)
-271%
3Q13
16.6
(7.9)
8.7
52%
(36.6)
(27.9)
1.9
0.6
(25.4)
-153%
3Q14/3Q13
-25%
111%
-148%
-86 p.p.
-14%
28%
-24%
1%
33%
-118 p.p.
9M14
115.9
(44.2)
71.6
62%
(98.1)
(26.4)
3.8
7.1
(15.5)
-13%
9M13
140.4
(45.3)
95.1
68%
(111.2)
(16.0)
5.6
9.4
(1.0)
-1%
9M14/9M13
-17%
-2%
-25%
-6 p.p.
-12%
66%
-31%
-24%
1485%
-12 p.p.
In 3Q14, revenue from the Publishing was impacted by the 25%
decrease in the number of books sold, especially in the private
segment due to the non-recurring sale of 1.7 million books to FDESP in 3Q13.
As mentioned in last quarter's earnings release, the 111% increase in
COGS in 3Q14 was due to the shifting of costs related to the
distribution of teacher’s books for the announcement of the 2015
PNLD. The lower revenue combined with the higher COGS
contributed to a reduction in the EBITDA of the Publishing business compared to 3Q13.
III) Highlights of Schools and Preparatory Courses in the Quarter
Schools and Prep. Courses -R$ mm
Net Revenue
(-) Cost of goods sold (COGS)
(=) Gross Profit
Gross margin (%)
(-) Selling, general and administrative expenses
(=) Operating income (loss)
(+) Depreciation and Amortization
(+) Amortization of publishing investment
EBITDA
EBITDA Margin (%)
3Q14
79.7
(36.7)
43.0
54%
(25.4)
17.6
1.3
0.0
18.9
24%
3Q13
59.5
(22.5)
37.0
62%
(19.4)
17.6
1.3
0.0
18.9
32%
3Q14/3Q13
34%
63%
16%
-8 p.p.
31%
0%
2%
0%
0%
-8 p.p.
9M14
224.6
(102.2)
122.4
55%
(72.1)
50.3
3.8
0.0
54.1
24%
9M13
142.2
(59.6)
82.6
58%
(51.9)
30.7
2.5
0.0
33.3
23%
9M14/9M13
58%
72%
48%
-3 p.p.
39%
64%
49%
0%
62%
1 p.p.
In the Schools and Preparatory Courses, the Company recognized in the quarter R$19.9 million in revenue from
Colégio Sigma, which was consolidated in October 2013. Excluding the effect of this acquisition, net revenue was
virtually flat at around R$60 million.
The increases in COGS (63%) and expenses (31%) in 3Q14 are explained by the recognition of R$12.7 million related to
Colégio Sigma. Excluding this effect, costs and expenses increased 8%. The increase in costs and expenses, which
outpaced revenue growth, led to EBITDA margin contraction in the quarter.
Another factor contributing to margin contraction in 3Q14 was the segregation of amounts related to teaching
materials, which previously were incorporated into the monthly tuition payments at Cursinho Anglo, in line with the
standard practice adopted for the Company's other schools. Due to this adjustment, there was a shift from 3Q14 to
4Q14 of R$4.0 million in revenue and of R$1.4 million in EBITDA that had no impact on the growth trajectory of this
business line in the year.
8
IV) Highlights of Language in the Quarter
Languages -R$ mm
Net Revenue
(-) Cost of goods sold (COGS)
(=) Gross Profit
Gross margin (%)
(-) Selling, general and administrative
expenses
(=) Operating income (loss)
(+) Depreciation and Amortization
(+) Amortization of publishing investment
EBITDA
EBITDA Margin (%)
3Q14
40.9
(3.7)
37.2
91%
3Q13
39.9
(3.3)
36.6
92%
3Q14/3Q13
2%
12%
1%
-1 p.p.
9M14
134.7
(13.0)
121.7
90%
9M13
75.5
(12.1)
63.4
84%
9M14/9M13
78%
8%
92%
6 p.p.
(24.5)
(25.2)
-3%
(89.9)
(40.3)
123%
12.6
0.6
0.0
13.2
32%
11.4
0.6
0.0
12.1
30%
10%
-9%
0%
10%
2 p.p.
31.8
1.4
0.0
33.2
25%
23.1
0.9
0.0
24.0
32%
38%
61%
0%
38%
-7 p.p.
The highlights of the Language business in the quarter were: (i) revenue at the Grupo Ometz in 3Q14 remaining stable
at R$33.9 million, due to the discounts for credit card payments, which already account for 36% of total payments; (ii)
the 11% increase in COGS due to the wage increases under collective bargaining agreements at the owned schools of
Red Balloon; and (iii) the 3% decrease in expenses due to the review of headcount. These factors combined
contributed to a 2 p.p. increase in EBITDA margin in the quarter, from 30% in 3Q13 to 32% in 3Q14.
In 3Q14, EBITDA in the Language business adjusted by the present value of receivables of R$1.6 million and the FIFA
expense of R$1.3 million at Grupo Ometz amounted to R$16.1 million with adjusted margin of 39%.
9
INCOME STATEMENT – BY BUSINESS LINE
3Q14 – Corporate* (R$ million)
Per Business Line -R$ mm
3Q14 Results
Publishers
Learning
Systems
Schools
and Prep. Language
Others
Courses
Net Revenue
12.4
75.9
79.7
(-) Cost of goods sold (COGS)
(16.7)
(15.0)
(=) Gross Profit
(4.2)
60.9
Corporate
Expenses
Elimination
Amortization
(3.9)
0.0
Consolidated
AE
40.9
5.6
0.0
210.6
(36.7)
(3.7)
(0.1)
0.0
3.4
0.0
(68.7)
43.0
37.2
5.5
0.0
(0.5)
0.0
141.9
Gross m argin (%)
-34%
80%
54%
91%
99%
...
13%
...
67%
(-) Selling, general and administrativ e expenses
(31.5)
(25.3)
(25.4)
(24.5)
(5.5)
(13.5)
0.5
(14.3)
(139.5)
(=) Operating income (loss)
(35.7)
35.6
17.6
12.6
(0.0)
(13.5)
0.0
(14.3)
2.4
1.4
0.7
1.3
0.6
0.7
0.8
0.0
14.3
19.9
(+) Depreciation and Amortization
(+) Amortization of publishing inv estment
(=) Adjusted EBITDA
0.6
2.4
0.0
0.0
0.0
0.0
0.0
0.0
3.0
(33.7)
38.7
18.9
13.2
0.7
(12.6)
0.0
0.0
25.3
(+) Prov ision for restructuring (non-recurring)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
(=) Adjusted EBITDAby restructuring provision
(33.7)
38.7
18.9
13.2
0.7
(12.6)
0.0
0.0
25.3
EBITDA Margin (%)
-271%
51%
24%
32%
12%
...
0%
...
12%
3Q13 – Corporate* (R$ million)
Per Business Line -R$ mm
3Q13 Results
Publishers
Learning
Systems
Schools
and Prep. Language
Net Revenue
16.6
58.1
59.5
(-) Cost of goods sold (COGS)
(7.9)
(10.3)
(=) Gross Profit
8.7
47.9
Gross m argin (%)
Others
Courses
Corporate
Expenses
Elimination
Amortization
(1.6)
0.0
Consolidated
AE
39.9
5.8
0.0
178.4
(22.5)
(3.3)
(1.4)
0.0
1.9
0.0
(43.5)
37.0
36.6
4.4
0.0
0.3
0.0
134.9
52%
82%
62%
92%
76%
...
-20%
...
76%
(-) Selling, general and administrativ e expenses
(36.6)
(17.6)
(19.4)
(25.2)
(2.7)
(15.0)
(0.3)
(9.6)
(126.4)
(=) Operating income (loss)
(27.9)
30.2
17.6
11.4
1.7
(15.0)
0.0
(9.6)
8.5
1.9
0.4
1.3
0.6
0.1
0.0
0.0
9.6
14.0
(+) Depreciation and Amortization
(+) Amortization of publishing inv estment
(=) Adjusted EBITDA
0.6
1.8
0.0
0.0
0.0
0.0
0.0
0.0
2.4
(25.4)
32.5
18.9
12.1
1.9
(15.0)
0.0
0.0
24.9
(+) Prov ision for restructuring (non-recurring)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
(=) Adjusted EBITDAby restructuring provision
(25.4)
32.5
18.9
12.1
1.9
(15.0)
0.0
0.0
24.9
EBITDA Margin (%)
-153%
56%
32%
30%
32%
...
-2%
...
14%
Elimination
Amortization
143%
...
18%
58%
3Q14 vs. 3Q13 – Change (%)
Per Business Line -R$ mm - Changes %
3Q14 vs 3Q13
Net Revenue
Publishers
Learning
Systems
-25%
31%
(-) Cost of goods sold (COGS)
111%
(=) Gross Profit
-148%
Schools
and Prep. Language
Others
Courses
Corporate
Expenses
Consolidated
AE
34%
2%
-4%
...
46%
63%
12%
-95%
...
77%
...
27%
16%
1%
25%
...
-254%
...
5%
-86 p.p.
-2 p.p.
-8 p.p.
-1 p.p.
23 p.p.
...
33 p.p.
...
-9 p.p.
(-) Selling, general and administrativ e expenses
-14%
44%
31%
-3%
107%
-10%
-267%
49%
10%
(=) Operating income (loss)
28%
18%
0%
10%
101%
-10%
-100%
49%
-72%
(+) Depreciation and Amortization
-24%
60%
2%
-9%
416%
...
...
49%
42%
1%
34%
0%
0%
...
...
...
...
27%
33%
19%
0%
10%
65%
-16%
-100%
...
1%
(+) Prov ision for restructuring (non-recurring)
...
...
...
...
...
...
...
...
...
(=) Adjusted EBITDAby restructuring provision
33%
19%
0%
10%
65%
-16%
-100%
...
0%
-118 p.p.
-5 p.p.
-8 p.p.
2 p.p.
45 p.p.
...
...
...
-2 p.p.
Gross m argin (%)
(+) Amortization of publishing inv estment
(=) Adjusted EBITDA
EBITDA Margin (%)
(*) Consolidated data on a corporate basis and data by business on a managerial basis. Consolidated EBITDA is adjusted by amortization of the publishing investment.
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$22.5 million in 3Q13 and R$22.3 million in 3Q14. EBITDA was R$120.3 million in 9M13 and R$145.7 million in
9M14. Adjusted EBITDA is calculated based on operating income including the amounts related to depreciation and amortization and including amortization of publishing
investments. Pursuant to CVM Instruction 527/12, the company may opt to report EBITDA excluding the net amounts related to discontinued operations, as per Technical
Pronouncement CPC 31 – Non-Current Assets Held for Sale and Discontinued Operations, and adjusted for other items that contribute to information on the potential gross cash
generation.
10
INCOME STATEMENT – BY BUSINESS LINE
9M14 – Corporate* (R$ million)
Per Business Line -R$ mm
9M14 Results
Publishers
Net Revenue
115.9
(-) Cost of goods sold (COGS)
(=) Gross Profit
Gross m argin (%)
Learning
Systems
Schools
and Prep. Language
Others
Courses
261.8
224.6
(44.2)
(48.0)
(102.2)
71.6
213.8
122.4
62%
82%
55%
(-) Selling, general and administrativ e expenses
(98.1)
(68.3)
(=) Operating income (loss)
134.7
Corporate
Expenses
Consolidated
Elimination
Amortization
(5.6)
0.0
753.7
AE
22.4
0.0
(13.0)
(2.0)
0.0
4.5
0.0
(204.9)
121.7
20.4
0.0
(1.1)
0.0
548.8
90%
91%
...
20%
...
73%
(72.1)
(89.9)
(17.4)
(72.3)
1.1
(43.3)
(460.3)
(26.4)
145.5
50.3
31.8
2.9
(72.3)
0.0
(43.3)
88.5
(+) Depreciation and Amortization
3.8
1.6
3.8
1.4
2.4
0.8
0.0
43.3
57.2
(+) Amortization of publishing inv estment
7.1
7.9
0.0
0.0
0.1
0.0
0.0
0.0
15.1
(15.5)
155.0
54.1
33.2
5.6
(71.5)
0.0
0.0
160.8
(=) Adjusted EBITDA (current)
(+) Prov ision for restructuring (non-recurring)
0.0
0.0
0.0
0.0
0.0
27.9
0.0
0.0
27.9
(=) Adjusted EBITDAby restructuring provision
(15.5)
155.0
54.1
33.2
5.6
(43.6)
0.0
0.0
188.7
EBITDA Margin (%)
-13%
59%
24%
25%
25%
...
0%
...
25%
9M13 – Corporate* (R$ million)
Per Business Line -R$ mm
9M13 Results
Publishers
Net Revenue
140.4
(-) Cost of goods sold (COGS)
(=) Gross Profit
Gross m argin (%)
Learning
Systems
Schools
and Prep. Language
Others
Courses
Corporate
Expenses
Consolidated
Elimination
Amortization
(5.0)
0.0
568.0
AE
201.6
142.2
75.5
13.3
0.0
(45.3)
(37.9)
(59.6)
(12.1)
(4.9)
0.0
4.9
0.0
(154.7)
95.1
163.8
82.6
63.4
8.4
0.0
(0.1)
0.0
413.2
68%
81%
58%
84%
63%
...
1%
...
73%
(-) Selling, general and administrativ e expenses
(111.2)
(48.4)
(51.9)
(40.3)
(8.6)
(43.5)
0.1
(25.2)
(328.9)
(=) Operating income (loss)
(16.0)
115.3
30.7
23.1
(0.2)
(43.5)
0.0
(25.2)
84.3
(+) Depreciation and Amortization
5.6
1.3
2.5
0.9
0.4
0.0
0.0
25.2
36.0
(+) Amortization of publishing inv estment
9.4
5.2
0.0
0.0
(0.0)
0.0
0.0
0.0
14.5
(=) Adjusted EBITDA (current)
(1.0)
121.8
33.3
24.0
0.2
(43.5)
0.0
0.0
134.8
(+) Prov ision for restructuring (non-recurring)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
(=) Adjusted EBITDAby restructuring provision
(1.0)
121.8
33.3
24.0
0.2
(43.5)
0.0
0.0
134.8
EBITDA Margin (%)
-1%
60%
23%
32%
1%
...
-1%
...
24%
Elimination
Amortization
9M14 vs. 9M13 – Change (%)
Per Business Line -R$ mm - Changes %
9M14 vs 9M13
Net Revenue
(-) Cost of goods sold (COGS)
(=) Gross Profit
Gross m argin (%)
Publishers
Learning
Systems
Schools
and Prep. Language
Others
Courses
Corporate
Expenses
Consolidated
AE
-17%
30%
58%
78%
69%
...
12%
...
-2%
27%
72%
8%
-59%
...
-9%
...
33%
32%
-25%
31%
48%
92%
144%
...
1844%
...
33%
-6 p.p.
1 p.p.
-3 p.p.
6 p.p.
28 p.p.
...
19 p.p.
...
0 p.p.
(-) Selling, general and administrativ e expenses
-12%
41%
39%
124%
103%
66%
1243%
72%
40%
(=) Operating income (loss)
66%
26%
64%
39%
1508%
66%
-100%
72%
5%
(+) Depreciation and Amortization
-31%
22%
49%
61%
507%
...
...
72%
59%
-24%
53%
0%
0%
-366%
...
...
...
4%
1485%
27%
62%
38%
-3301%
64%
-100%
...
19%
(+) Amortization of publishing inv estment
(=) Adjusted EBITDA (current)
(+) Prov ision for restructuring (non-recurring)
...
...
...
...
...
...
...
...
...
(=) Adjusted EBITDAby restructuring provision
1485%
27%
62%
38%
-3301%
0%
-100%
...
40%
EBITDA Margin (%)
-12 p.p.
-1 p.p.
1 p.p.
-7 p.p.
45 p.p.
...
...
...
1 p.p.
(*) Consolidated data on a corporate basis and data by business on a managerial basis. Consolidated EBITDA is adjusted by amortization of the publishing investment.
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$22.5 million in 3Q13 and R$22.3 million in 3Q14. EBITDA was R$120.3 million in 9M13 and R$145.7 million in
9M14. Adjusted EBITDA is calculated based on operating income including the amounts related to depreciation and amortization and including amortization of publishing
investments. Pursuant to CVM Instruction 527/12, the company may opt to report EBITDA excluding the net amounts related to discontinued operations, as per Technical
Pronouncement CPC 31 – Non-Current Assets Held for Sale and Discontinued Operations, and adjusted for other items that contribute to information on the potential gross cash
generation.
11
APPENDIX I
INCOME STATEMENTS
PERIODS ENDED SEPTEMBER 30
(amounts in thousands of Brazilian real)
Net revenue
Cost of sales and services
Gross profit
Selling expenses
General and administrative expenses
Other income (expenses), net
Operating profit (loss)
Finance income
Finance costs
Foreign exchange variations, net
Profit (loss) before equity in the results of subsidiaries
Equity results
Profit before income tax and
Income tax and social contributions
Profit for the year
Profit attributable to:
Owners of the Company
Participation of Non-Controlling
07/01/2014 a
09/30/2014
01/01/2014 a
09/30/2014
07/01/2013 a
09/30/2013
Consolidated
01/01/2013 a
09/30/2013
210,594
(68,724)
141,870
(80,853)
(58,917)
256
2,356
13,068
(39,942)
1,818
(22,700)
610
(22,090)
5,067
(17,023)
753,718
(204,906)
548,812
(246,470)
(216,793)
2,965
88,514
40,035
(112,416)
1,385
17,518
(173)
17,345
(14,846)
2,499
178,398
(43,482)
134,916
(64,588)
(62,245)
444
8,527
8,631
(28,378)
361
(10,859)
(10,859)
(2,705)
(13,564)
567,962
(154,741)
413,221
(172,434)
(157,632)
1,147
84,302
26,167
(66,351)
1,194
45,312
45,312
(29,746)
15,566
(18,707)
(5,770)
(15,143)
12,290
1,684
(17,023)
8,269
2,499
1,579
(13,564)
3,276
15,566
Basic earnings per share - R$
(0.02212)
0.05099
Diluted earnings per share - R$
(0.02204)
0.05086
12
APPENDIX II
BALANCE SHEETS
PERIODS ENDED SEPTEMBER 30
(amounts in thousands of Brazilian real)
ASSETS
Controladora
Consolidado
09/30/2014
12/31/2013
09/30/2014
12/31/2013
7,624
2,928
14,500
15,432
666
100,271
2,504
12,984
15,432
825
287,524
159,457
245,085
48,366
1,019
21,565
360,420
325
318,343
176,004
33,689
25,714
41,150
132,016
763,016
914,495
373
-
373
-
373
8,635
4,360
373
10,150
4,739
6
-
5
-
121,035
6,903
3,823
1,803
7,647
58,440
6,362
2,780
-
Investments
Intangible assets
Property and equipment
1,566,538
184
1,567,101
1,496,970
303
1,497,651
6,265
2,123,723
98,228
2,382,795
4,434
2,150,177
81,156
2,318,611
Total assets
1,608,251
1,629,667
3,145,811
3,233,106
CURRENT
Cash and cash equivalents
Financial application
Receivables from customers
Inventories
Taxes recoverable
Dividends receivable
Sale of shareholding participation
Advances and prepaid expenses
NON-CURRENT ASSETS
Financial assets
Receivables from customers
Taxes recoverable
Deferred income tax and social
contributions
Judicial deposits
Sale of shareholding participation
Advances and prepaid expenses
Others Receivables
13
APPENDIX II (cont.)
BALANCE SHEETS
PERIODS ENDED SEPTEMBER 30
(amounts in thousands of Brazilian real)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Parent
Consolidated
09/30/2014
12/31/2013
09/30/2014
12/31/2013
25,612
11
-
30,781
10
17,268
218,335
155,262
12,531
6,179
-
232,280
92,194
7,304
15,859
19,032
-
-
36,784
132,375
25,623
48,059
429,091
499,044
9,700
-
286
-
13,289
352,900
603,367
852
45,614
5,518
355,864
671,831
40,236
4,631
4,631
118,010
73,281
14,331
4,917
1,134,032
1,146,730
39,954
52,976
1,563,123
1,645,774
852,868
518,799
220,189
(13,228)
(4,561)
(5,770)
852,868
517,192
220,189
(13,228)
(330)
-
852,868
518,799
220,189
(13,228)
(4,561)
(5,770)
852,868
517,192
220,189
(13,228)
(330)
-
Non-controlling interests
Total Equity
1,568,297
1,568,297
1,576,691
1,576,691
1,568,297
14,391
1,582,688
1,576,691
10,641
1,587,332
Total Liabilities and Equity
1,608,251
1,629,667
3,145,811
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 equity interest
Loans and other receivables
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
Accrued Profits
14
APPENDIX III
STATEMENTS OF CASH FLOW
PERIODS ENDED SEPTEMBER 30
(amounts in thousands of Brazilian real)
09/30/2014
Parent
09/30/2013
09/30/2014
Consolidated
09/30/2013
(2,500)
-
(16,809)
-
234,502
(91,450)
(27,540)
173,506
(36,928)
(17,203)
(2,500)
(16,809)
115,512
119,375
(52)
(33,496)
(35,100)
-
(308,071)
17,000
45,360
13,000
4
(28,103)
(15,052)
325
(1,575)
(97,862)
460
14
(6,975)
(16,108)
8,583
(430,190)
(438)
(85,563)
(616)
1,244
4
(68,648)
(232,707)
(141,793)
(530,059)
(4,231)
(17,268)
-
117,267
(23,783)
-
(16,760)
(3,186)
(908)
(4,231)
(17,268)
(4,262)
283,468
(13,218)
(3,320)
117,267
(23,783)
(670)
(21,499)
93,484
(46,615)
359,744
INCREASE ( DECREASE) IN CASH AND CASH EQUIVALENTS
(92,647)
(156,032)
(72,896)
(50,940)
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
100,271
7,624
181,661
25,629
360,420
287,524
305,892
254,952
NET CHANGES IN CASH AND CASH EQUIVALENTS
(92,647)
(156,032)
(72,896)
(50,940)
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 assets
Acquisition of subsidiary in the year, net of acquired cash
Decrease in cash due to disposal of subsidiary in the year
Payment for acquisition of equity interest
Capital increase in subsidiaries
Capital decrease in subsidiaries
Advance for future capital increase
Dividends received
Loans granted to related parties
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
New 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 in subsidiaries
NET CASH PROVIDED BY ( USED IN ) ACTIVITIES
FINANCING
-
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 will be offset in the flow of the fourth quarter, once the company's acquisition is concluded.
15
EARNINGS CONFERENCE CALL
The information will be available on our website at www.abrileducacao.com.br.
Conference call in English:
November 11, 2014
12:00 p.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: 10053896
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
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