Kroton Educacional S.A. announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported net revenue of BRL 1,526,273,000 against BRL 1,519,391,000 a year ago. Operating result was BRL 816,606,000 against BRL 850,475,000 a year ago. Adjusted EBITDA was BRL 641,548,000 against BRL 700,230,000 a year ago. Net income was BRL 467,347,000 against BRL 547,149,000 a year ago. Adjusted net income was BRL 562,075,000 against BRL 644,885,000 a year ago. Net debt was BRL 899,253,000 against BRL 948,890,000 a year ago. Operating cash generation after capex and special projects was BRL 262,971,000 against BRL 448,541,000 a year ago. Free cash flow was BRL 408,131,000 against BRL 53,551,000 a year ago. Adjusted net income per share was BRL 0.34 compared to BRL 0.39 a year ago. Cash generation growth CapEx in the period was extremely robust at BRL 318 million and with an EBITDA to cash conversion of 56.3%.

For the six months, the company reported net revenue was BRL 2,889,598,000 against BRL 2,884,513,000 a year ago. Operating result was BRL 1,602,397,000 against BRL 1,664,477,000 a year ago. Adjusted EBITDA was BRL 1,256,262,000 against BRL 1,339,759,000 a year ago. Net income was BRL 942,763,000 against BRL 1,040,822,000 a year ago. Adjusted net income was BRL 1,101,067,000 against BRL 1,221,947,000 a year ago. Operating cash generation after capex and special projects was BRL 124,385,000 against BRL 487,300,000 a year ago. Free cash flow was BRL 598,541,000 against of BRL 59,862,000 a year ago. Adjusted net income per share was BRL 0.67 compared to BRL 0.74 a year ago. And in this semester, CapEx stood at BRL 278 million, 9.6% of the net revenues for the period.

The company confirmed the positive outlook for cash generation in the second half of 2018, which also includes receipt of the last installment under PN23, credited in early August.