Afya Limited (NASDAQ:AFYA) Q3 2019 Earnings Conference Call - Preliminary Transcript

Dec 02, 2019 • 11:00 am ET

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Afya Limited (NASDAQ:AFYA) Q3 2019 Earnings Conference Call - Preliminary Transcript

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Presentation
Executive
Luciano Campos

impact of IFRS 16, and excludes the acquisitions consolidated after the first half of 2019 that -- is excludes the results of the ITPAC.

Finally, moving to Slide 12, I would like to remind everyone about the 2 seasonality factors that affect our business and it's important to pay attention to, in order to properly interpret our results in this quarter and in future quarters. The first and most important factor is the revenue recognition of Business Unit 2, which is concentrated in the third and fourth quarter when printed books and e-books are delivered to our press students.

The second is the ramp up of our medical schools which have 2 admission cycles for new students and run at a 100% occupancy rates. As a consequence, while we had schools (inaudible), the second half of each year would normally have more students and higher tuition revenues compared to the first half.In the balance of these 2 factors, in a typical year the third

And fourth quarters are the strongest, for revenues and EBITDA. The second quarter tends to be the weakest, while the third quarter in between these 2 groups. So far, 2019 since the typical year.With that we end our prepared remarks and we would like to open up for questions. Operator, please open the line.