Afya(US:AFYA)2024-11-13 21:04Financial Performance - Revenue for the three-month period ended September 30, 2024, increased to BRL 841,185 thousand, up 16.3% from BRL 723,479 thousand in the same period of 2023[4] - Gross profit for the nine-month period ended September 30, 2024, reached BRL 1,546,885 thousand, representing a 16.6% increase compared to BRL 1,325,911 thousand in 2023[4] - Operating income for the three-month period ended September 30, 2024, was BRL 233,892 thousand, a 23.0% increase from BRL 190,286 thousand in the prior year[4] - Net income for the nine-month period ended September 30, 2024, was BRL 494,641 thousand, up 62.8% from BRL 303,530 thousand in 2023[4] - Basic earnings per share for the three-month period ended September 30, 2024, increased to BRL 1.33, compared to BRL 1.04 in the same period of 2023[4] - Total revenue for the nine-month period ended September 30, 2024, was R$2,455,314, an increase from R$2,146,047 in the same period of 2023, representing a growth of approximately 14.4%[40] - Gross profit for the nine-month period ended September 30, 2024, was R$1,546,885, compared to R$1,325,911 in 2023, reflecting a gross margin improvement[40] - Net income for the nine-month period ended September 30, 2024, was R$494,641, up from R$336,826 in 2023, indicating a year-over-year increase of approximately 47%[40][43] Assets and Liabilities - Total assets as of September 30, 2024, amounted to BRL 8,713,627 thousand, an increase of 14.9% from BRL 7,584,481 thousand at the end of 2023[2] - Total liabilities increased to BRL 4,561,984 thousand as of September 30, 2024, compared to BRL 3,941,469 thousand at the end of 2023, reflecting a 15.7% rise[2] - Non-current liabilities rose to BRL 3,636,799 thousand as of September 30, 2024, up 26.2% from BRL 2,882,902 thousand at the end of 2023[2] - Total equity attributable to equity holders of the parent reached BRL 4,110,446 thousand as of September 30, 2024, up 14.1% from BRL 3,601,505 thousand at the end of 2023[2] - Current liabilities as of September 30, 2024, were R$1,069,784, while non-current liabilities were R$2,882,902, indicating a stable financial position[40] - Total loans and financing increased to R$2,145,270 as of September 30, 2024, up from R$1,800,775 at the end of 2023, reflecting a growth of approximately 19.1%[85] Cash Flow and Financing - Cash and cash equivalents increased to BRL 836,876 thousand as of September 30, 2024, compared to BRL 553,030 thousand at the end of 2023, marking a 51.5% increase[2] - Net cash flows from operating activities increased to R$1,148,175 for the nine-month period ended September 30, 2024, compared to R$896,202 in 2023, reflecting a growth of 28%[8] - The Company generated net cash flows of R$88,676 from financing activities in the nine-month period ended September 30, 2024, compared to a net outflow of R$256,791 in 2023[8] - The company entered into a loan agreement with the International Finance Corporation for up to R$500,000 to support its expansion program, with repayments starting in April 2027[86] Acquisitions and Expansions - The acquisition of Unidom on July 1, 2024, involved a total purchase price of R$816,236, with R$575,000 paid in cash at closing[17] - Total approved medical school seats reached 3,593 as of September 30, 2024, including 300 seats from the acquisition of Unidom[14] - Unidom contributed R$32,421 in revenue and R$16,396 in income before income taxes to the company in 2024, with potential revenue increases if additional medical school seats are approved[60] - The Company has a focus on expanding its network of higher education institutions, particularly in the medical field, across 19 Brazilian states[10] Expenses and Costs - Total costs and expenses for the nine-month period ended September 30, 2024, were R$1,693,382,000, compared to R$1,559,944,000 in 2023, indicating an increase of 8.5%[131] - The company reported a finance income of R$79,659 and finance expenses of R$322,420 for the nine-month period ended September 30, 2024[40] - The company recognized a lease expense of R$5,450 for short-term leases and low-value assets for the nine-month period ended September 30, 2024, down from R$7,688 for the same period in 2023[88] Shareholder Information - The company reported a share-based compensation expense of R$14,572 for the nine-month period ended September 30, 2024, compared to R$13,522 for the same period in 2023[117] - Dividends paid in the nine-month period ended September 30, 2024, totaled R$58,236, an increase from R$53,291 in the same period of 2023[122] - The company's outstanding stock options as of September 30, 2024, were 1,543,479, down from 1,538,469 in the previous year[117] - The company has a share repurchase program approved for up to 2,000,000 Class A common shares, effective from March 24, 2023, until December 31, 2024[123] Tax and Legal Matters - The statutory income tax rate remained at 34%, resulting in income taxes at the statutory rate of R$177,150 for the nine-month period ended September 30, 2024, compared to R$114,521 in 2023[134] - The company recognized a fiscal incentive under PROUNI, resulting in a tax benefit of R$279,487 for the nine-month period ended September 30, 2024[134] - Total provisions related to legal proceedings as of September 30, 2024, amounted to R$115,042, a decrease from R$134,068 as of September 30, 2023[137] - The company added R$35,060 in provisions for legal proceedings during the nine-month period ended September 30, 2024[137] Goodwill and Intangible Assets - The net book value of intangible assets as of September 30, 2024, reached R$5,541,793, up from R$4,339,859 as of January 1, 2023, indicating an increase of about 27.6%[80] - Goodwill increased to R$1,521,071 as of September 30, 2024, from R$1,328,868 as of September 30, 2023, representing a growth of approximately 14.5%[80] - The total cost of licenses with indefinite useful life as of September 30, 2024, was R$3,362,420, an increase from R$2,776,078 as of September 30, 2023, reflecting a growth of approximately 21.1%[80] - The company reported a business combination resulting in an increase of R$653,550 in intangible assets during the nine-month period ended September 30, 2024[80]