Afya Limited (NASDAQ:AFYA) Q3 2019 Earnings Conference Call - Preliminary Transcript
Dec 02, 2019 • 11:00 am ET
(Operator Instructions) Our first question comes from Marcelo Santos with JP Morgan.
Hi, good morning. (technical difficulty)
Marcelo Santos, -- got your question. But we couldn't hear the first question, at least if you could repeat for us would be great. Thank you.
Sure. (technical difficulty)
Pardon me, Marcelo. This is the operator your phone line was breaking up. So I mean, I'm pretty sure they didn't, the question, do you mind re-queuing for queuing up again.
okay. Our next question comes from Bruno Giordano with Bank of America.
Good afternoon everyone, congratulations on the results. First question on David, of third quarter, quite strong number. Assuming that fourth quarter seasonally results -- are seasonally strong, is it factors in that it's a lot of upside for the second half in terms of compared to your guidance or are you expecting anything different in the fourth quarter in terms of seasonality? And second question on CapEx, correct me if I'm wrong, but I did a calculation here I saw an 80 million expenditure in (ph) PP&E pleasant tangibles and it's substantially higher than what you had spent -- spend in the second, in the first half. So, could you please. No, if it's correct.
Helpful. What do you expect in terms of CapEx for the full year. Thank you.
Hi. Bruno it's Luciano speaking. Start with the first part of your question about seasonality. We do not expect anything different in terms of seasonality. When you think about it in a conceptual terms. So do you expect the recognition of the revenues of all the new products and contracts we are selling in our prep business for example, which then increases revenues in the Business Unit 2 that's not different in the conceptual terms, what will be different than is intensity every year will be a little bit different than the other and especially we are -- While we are growing this set the fourth quarter, could be a little bit higher or a little bit lower than the first quarter. Okay. But that's within the range of expectations.
The second question about CapEx, just to consider please that the acquisition of ITPAC, since it does not have an operation. It's, considered as we are buying intangibles. So if you exclude that, because that's not organic CapEx, our organic CapEx then is pretty much where it should be. Okay?
Understood, very clear. Thank you.
Our next question comes from Thiago Bortoluci with Goldman Sachs.
Thiago A. Bortoluci
Yes, hi, Good afternoon, everyone. Thanks for the question. First, I would like to explore a little bit more thing on the guidance given that as Luciano mentioned, seasonality should be stronger in the first quarter as expected I stood at 73% of the high-end guidance for revenues is already delivered 72% of the high-end for adjusted EBITDA shouldn't be there any space or upside revisions to the guidance or at least to the need -- to the average of the guidance given where