4Q13 EARNINGS RESULTS

Belo Horizonte, March 18th, 2014, Kroton Educacional S.A. (BM&FBovespa: KROT3 and Bloomberg: KROT3:BZ), announces its results for the fourth quarter of 2013 (4Q13):

4Q13 Highlights:

- New enrollment and re-enrollment rates in 1Q14 are above the Company's daily targets. Expected inflow of 203,800 new On-Campus and Distance Learning Undergraduate students, for growth of 16.2% from 1Q13. Based on projections, the total Postsecondary student base should surpass 585,000 students by the end of the recruiting process, for growth of 22.9% from the same period of 2013.

- The first semester of activities (September 2013 to March 2014) in the Vocational Education business under the Pronatec program registered an average of 5,290 students. The segment's growth potential was increased by the authorization to add almost 26,000 new seats, which should generate around 14,000 new enrollments in the current student recruiting process.

- Net revenue growth of 42.1% from 4Q12, driven primarily by growth in the Postsecondary student base. In 2013, organic (same-unit) growth in net revenue compared to 2012 was 37.7%.

- Operating income of R$208.6 million, increasing 111.6% from 4Q12. Operating margin of 40.2%, expanding 13.2 p.p. from the prior-year period. In 2013, operating income grew by 82.5% compared to 2012.

- Adjusted EBITDA of R$173.1 million, growing 140.1% from 4Q12. Adjusted EBITDA margin of 33.4%, expanding 13.6 p.p. from the year-ago quarter. In 2013, adjusted EBITDA amounted to R$728.4 million, growing 87.9% from 2012, with Adjusted EBITDA margin of 36.1%, expanding 8.8 p.p. from the prior year.

- Adjusted net income of R$137.8 million in 4Q13, higher than the R$38.2 million posted in the prior-year period. Adjusted net margin of 26.6%, expanding 16.1 p.p. from 4Q12. In the year, adjusted net income amounted to R$582.4 million.

- Operating cash flow after capex (pro-forma) of R$115.2 million and R$622.0 million in 4Q13 and 2013, respectively. The ratio of this indicator to adjusted EBITDA (unadjusted) represents a conversion rate of 88.4% in the year.

- Total net debt of R$362.1 million, 40.9% lower than a year earlier, reflecting the positive impact of cash generation between the periods. The total net debt/ Adjusted EBITDA ratio stood at 0.50x in 4Q13.

To access the Earnings Release, please, click here.

Next Event:

4Q13 Earnings Conference Call: March 18th, 2014

English Portuguese
Time: 12:30 p.m. (Brasília) Time: 11:00 a.m. (Brasília)
Time: 11:30 a.m. (New York) Time: 10:00 a.m. (New York)
Phone: +1 (412) 317-6776 or
+1 (877) 317-6776 		Phone: +55 (11) 3127-4971 or
+55 (11) 3728-5971
Code: Kroton Code: Kroton
Replay: +1 (412) 317-0088 Replay: +55 (11) 3127-4999
Code: 10040892 Code: 81752828

Participants are requested to connect ten minutes prior to the time set for the conference call.

Slides and Webcast: The conference call slides will be available on our website www.kroton.com.br/ir on March 18th. The Conference Call will be webcasted simultaneously on the same website, and will remain available after the event.

Notice to Shareholders

We hereby inform the Shareholders that the Board of Directors of Kroton Educacional S.A. ("Company"), at a meeting held on March 18, 2014, at 7:00 a.m. approved, subject to approval of the Annual Shareholders' Meeting of the Company that will deliberate on the results of the fiscal year ended on December 31, 2013, the payment of interim dividends, calculated towards the minimum mandatory dividends for fiscal year 2013.

To access the Notice to Shareholders, please, click here.

For more information, please contact our investor relations department:

Carlos Lazar - Director
Carolina Igi - Coordinator
Pedro Gomes - Coordinator

Telephone: + 55 (11) 3775.2288 / + 55 (11) 3775.2249 / +55 (11) 3775.2003
Email: dri@kroton.com.br
www.kroton.com.br/ri

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