Belo Horizonte, November 12, 2015, Kroton Educacional S.A. (BM&FBovespa: KROT3 and Bloomberg: KROT3:BZ), announces its results for the third quarter of 2015 (3Q15).

3Q15 Results

3Q15 Highlights:

- The second admissions process of 2015 added around 176,300 new On-Campus and Distance Learning Undergraduate students, representing growth of 4% on 3Q14. The total base of Postsecondary students reached 1.1 million.

- Dropout rates and PDA remained under control, confirming the resilience of the business and the perception of the high value that Education has in people's lives, as well as the effectiveness of the actions being implemented to mitigate potential adverse effects.

- Net revenue amounted to R$1,234.8 million, a 7.8% increase from 3Q14, which was mainly due to the higher number of paying students added through the admissions and re-enrollments processes conducted in the year. In 9M15, net revenue amounted to R$3,933.9 million, increasing 54.6% on the prior-year period, or 9.5% on a pro forma basis.

- Adjusted EBITDA was R$508.2 million, advancing 27.4% on 3Q14. In 9M15, Adjusted EBITDA was R$1,660.7 million, with margin of 42.2%, significantly higher than in second semester of 2014, a period that already consolidated the Anhanguera figures. On a pro forma basis, strong margin expansion in the year to date was also observed, of 6.0 p.p.

- Adjusted net income came to R$407.4 million in 3Q15, growing 33.7% from R$304.6 million in 3Q14. In 3Q15, adjusted net margin was 33.0%, also significantly higher than in 3Q14. In 9M15, adjusted net income advanced 56.3% on 9M14 to R$1,376.5 million, with adjusted net margin of 35.0%. Pro forma net margin expanded a robust 6.1 p.p. in the period.

- Despite the calendar of FIES credits valid for this year (PN23), operating cash generation after capex was R$334.3 million in 3Q15, clearly demonstrating the strict budget control and adequate policy for recognizing revenue.

- Kroton entered into an agreement to sell Uniasselvi for up to R$1.1 billion. It also acquired Studiare, a technology startup focused on education, which will support the optimization of its educational management and the customization of its academic model.

To access Kroton's earnings release, please, click here.

3Q15 Earnings Conference Call: November 12, 2015

EnglishPortuguese
Time: 01:00 p.m. (Brasília) Time: 11:30 a.m. (Brasília)
Time: 10:00 a.m. (New York) Time: 08:30 a.m. (New York)
Phone: +1 (412) 317-6776 or
+1 (877) 317-6776
Phone: +55 (11) 2188-0155
Code: Kroton Code: Kroton
Replay: +1 (412) 317-0088 Replay: +55 (11) 2188-0400
Code: 10074929 Code: Kroton

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 November 12. 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 August 12, 2015, at 7:00 a.m. approved, subject to approval of the Annual Shareholders' Meeting of the Company that will consider and vote on the results of the fiscal year ending December 31, 2015, the payment of interim dividends, calculated towards the minimum mandatory dividends for fiscal year 2015.

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) 3133-7309 / +55 (11) 3133-7314 / +55 (11) 3133-7311
Email: dri@kroton.com.br

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