Kroton Educacional : | 3Q16 Results and Conference Call

Belo Horizonte, November 10, 2016, Kroton Educacional S.A. (BM&FBovespa: KROT3; OTCQX: KROTY), 'Kroton' or 'Company,' announces today its results for the third quarter of 2016 (3Q16).

Highlights - 3Q16 Results:

• Kroton registered solid intake results for the second semester of 2016 in both the On-Campus and Distance Learning segments, with new enrollments up 1.5% and 12%, respectively (ex-Uniasselvi), reflecting the successful commercial actions and the positive impact from organic expansion over the past few years.
• Net revenue advanced 4.6% on 3Q15 (excluding Uniasselvi's results), supported by the intake processes, which recently included significant decreases in the amounts of discounts and scholarships awarded. These effects were partially offset by the lower revenue from Pronatec and LFG. In the first nine months of the year, pro forma net revenue amounted to R$3,841.6 million, increasing 3.1% from 9M15.
• Adjusted EBITDA reached R$532.3 million in 3Q16, increasing 4.7% compared to 3Q15, with adjusted EBITDA margin expanding 233 basis points to 43.5%. Excluding the effects from Uniasselvi in 3Q15, adjusted EBITDA grew 10.1%, reflecting the student intake and retention initiatives and the focus on operating efficiency. In 9M16, adjusted EBITDA totaled R$1,771.6 million, with margin of 45.6%.
• Adjusted net income came to R$ 452.7 million in 3Q16, growing 11.1% from 3Q15, with adjusted net margin expanding 399 basis points. Excluding Uniasselvi, adjusted net income posted solid growth of 17.3% compared to 3Q15. In 9M16, adjusted net income was R$1,520.4 million, with margin of 39.2%, growing 10.5% in relation to the same period last year.
• Operating cash generation after capex in the period was R$465.5 million, for an EBITDA-to-Cash ratio of 94.7%, enhanced by the receipt of the first installment under NR23 in the period. In 9M16, operating cash generation after capex amounted to R$ 1,039.1 million, despite the delay in the FIES amendment process for 2S16.
  

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

3Q16 Earnings Conference Call: November 10, 2016

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 10. The Conference Call will be webcasted simultaneously on the same website, and will remain available after the event.

Notice to Shareholders

We hereby announce to the Shareholders that the Board of Directors of Kroton Educacional S.A. ('Company'), in the meeting held at 7:00 a.m. on November 10, 2016, approved, subject to approval of the Annual Shareholders' Meeting of the Company that will consider and vote on the results of the fiscal year ended on December 31, 2016, the distribution of interim dividends, to be calculated towards the minimum mandatory dividends for fiscal year 2016.

To access the Notice to Shareholders, please, click here.
For more information, please contact our investor relations department:

Carlos Lazar - Director
Pedro Gomes - Manager
Ana Troster - Coordinator

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