Q4 2024 Cruzeiro do Sul Educacional SA Earnings Call (English, Portuguese) Transcript
Key Points
- Adjusted net earnings reached BRL187 million, a 72% increase from the previous year, marking the highest amount ever posted by the company.
- Revenue grew by 12% to BRL2.6 billion, with adjusted EBITDA also expanding by 12% to BRL766 million.
- The student base expanded by 12%, reaching 526,000 students, demonstrating strong growth in both On-Campus and Digital courses.
- The company achieved the highest free cash flow in its history at BRL328 million, reflecting a 323% increase from 2023.
- Financial leverage improved to 1.4 times from 1.6 times in 2023, even after significant cash disbursements for acquisitions and dividends.
- Gross margin in the fourth quarter dropped to 46% from 46.7% in the same period of the previous year, mainly due to increased costs in revenue share with digital learning hubs.
- Adjusted EBITDA margin decreased to 24.5% in the fourth quarter from 25.5% in the previous year, impacted by a drop in gross cash margin and delinquency estimate updates.
- Non-recurring expenses totaled BRL42.2 million in 2024, including BRL23.5 million related to the update of the PDA provision curve.
- The company faced challenges with delinquency, leading to a significant update in delinquency estimates and a provision of BRL39.5 million.
- Marketing expenses increased as a share of revenue, driven by the need to maintain competitive intake levels and support growth initiatives.
Good afternoon, and thank you for holding. Welcome to Cruzeiro do Sul Educacional's conference call today, discussing the earnings release of the fourth quarter of 2024. (Operator Instructions)
We inform that this conference is being recorded and will be available on the company's IR website at ri.cruzeirodosuleducacional.com.br, where you will also find a complete set of materials for our earnings release. You can also download the presentation on the Chat icon, also available in English.
(Operator Instructions)
Note that the information in this presentation and statements that may be made during this conference call relating to Cruzeiro do Sul Educacional's business prospects, projections and operational and financial targets are based on the company's management beliefs and assumptions, as well as on currently available information.
Forward-looking statements are not a guarantee of performance. They involve risks, uncertainties and assumptions as they refer to future events, and hence, depend on circumstances that may or may not occur. Investors should understand
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