Afya Limited (NASDAQ:AFYA) Q3 2019 Earnings Conference Call - Final Transcript
Dec 02, 2019 • 11:00 am ET
Good morning, ladies and gentlemen, and welcome to the Afya's Thirrd Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. With me on the call today are Afya's CEO Virgilio Gibbon; and CFO, Luciano Campos; and Head of IR Vanessa Claro [Phonetics].
During today's presentation, our executives will make forward-looking statements. Forward-looking statements generally relate to future events or future financial operating performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those contemplated by the forward-looking statements.
Forward-looking statements in this presentation include, but in our limited to statements related to our business in the financial performance, expectations and guidance for our future periods or expectations regarding our strategic -- strategic product initiatives and the related benefits and our expectations regarding the market.
These risks include those more fully described in our filings with the Securities and Exchange Commission. The forward-looking statements in this presentation are based on the information available as of the date hereof.
You should not rely on them as predictions of future events and we disclaim any obligation to update any forward-looking statements, except as required by law. In addition, management may refer to non-IFRS financial measures on this call. The non-IFRS financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with IFRS, we have provided a reconciliation of the non-IFRS financial measures to the most directly comparable IFRS financial measures in this presentation.
Let me now turn the call over to Virgilio Gibbon, Afya's CEO, you may begin.
Thank you and thanks everyone for joining Afya's third Quarter Conference call. I'll begin with an overview of the key highlights of the quarter and then Luciano, our CFO, who will discuss our financial results. So again, I'm very pleased to report a strong third quarter and 9-month results that reinforce our guidance for the second half of 2019, the M&A front, we have completed in August, the acquisition of ITPAC with 120 medical school seats in the State of Para additionally in November, we announced plans to acquire when hit into medical school in the state of [Indecipherable] additional 112 seats and a strong portfolio of medical and health care graduate product, fully aligned with our strategy to expand our service to every stage of the medical career.
We had a great quarter across all key metrics. Our revenue increase of 124% over the same period last year, driven by the maturation of our medical schools and the consolidation of our acquisition, since September 2018. Our strong top line growth combined with synergies from our recent acquisition supported and adjusted EBITDA of 80.9 million. We present our growth of 147% over the same period last year, with a margin expansion of 380 basis points.
Our cash generation has remained very strong, reach an operating cash