| Over a week ago | ||||
Afya Limited announced… Afya Limited announced that its board has approved a share buyback program. Under the share buyback program, Afya may repurchase up to 1.02M of its outstanding Class A common shares in the open market, based on prevailing market prices, or in privately negotiated transactions, over a period beginning on December 24, 2020 continuing until the earlier of the completion of the repurchase or December 31, 2021, depending upon market conditions. | ||||
| Over a month ago | ||||
Reports Q3 revenue… Reports Q3 revenue R$309.4M, up 49.7% from last year. CEO Virgilio Gibbon says: "I am pleased to report third quarter results, which were in line with expectations and the guidance we had provided. Earlier in the year, we had pivoted to leverage our online and virtual technology capabilities and adjust offerings for the Brazilian medical ecosystem. I am pleased that during the past quarter, across our medical schools, on site clinical classes are back. In turn, we were able to deliver H1 postponed classes and recognize the deferred revenue in the quarter. Additionally, our medical school maturation, successful integrations and execution, contributed to a 63% year over year increase in Adjusted EBITDA. Our liquidity was another highlight with a strong balance sheet to support acquisitions. We ended the quarter with R$1.1 billion in cash." | ||||
Afya Limited announced… Afya Limited announced the acquisition of 100% of the total share capital of MedPhone, through its wholly-owned subsidiary Afya Participacoes S.A. MedPhone is a clinical decision and leaflet consultation app in Brazil, that helps physicians, medical students and other healthcare professionals to make faster and more accurate decisions on a daily basis. MedPhone has more than 175,000 registered users and more than 58,000 monthly active users, with a NPS of 75. The app has more than 9,100 reviews in AppStore with a 4.9 out of 5 score. The integration of MedPhone's clinical decision software with PEBMED will create great synergy and allow us to offer both products through the same platform. The net purchase price was R$6.4M and was paid in cash. | ||||
Afya Limited announced it… Afya Limited announced it entered into a purchase agreement for the acquisition, through its wholly-owned subsidiary Afya Participacoes S.A., of 100% of the total share capital of Sociedade Padrao de Educacao Superior. The aggregate purchase price is R$360.0 million, adjusted by the Net Debt at the closing date, of which 100% is payable in cash on the transaction closing date. UNIFIPMoc and Fip Guanambi are a post-secondary education institution with government authorization to offer on-campus, undergraduate courses in medicine in the states of Minas Gerais and Bahia. The expected Net Revenue for 2020 is R$ 109 million of which 63% comes from the medicine course. The 2024 projected Net Revenue for UNIFIPMoc and Fip Guanambi is R$ 121 million at full maturity, with medical courses representing 73% of this amount, an expected EV/EBITDA of 5.1x at maturity and post synergies. The acquisition will contribute 160 medical school seats to Afya, increasing Afya's total medical school seats to 2,303. There are 40 additional seats still pending approval which, if approved by the Ministry of Education, will result in a potential additional payment of up to R$50 million. | ||||
JPMorgan analyst Marcelo… JPMorgan analyst Marcelo Santos downgraded Afya to Neutral from Overweight with a $32 price target. The analyst cites valuation for the downgrade following the stock's recent rally. | ||||
| Over a quarter ago | ||||
Afya Limited announced… Afya Limited announced the acquisition of 100% of the total share capital of iClinic, through its wholly-owned subsidiary Afya Participacoes S.A. iClinic is a SaaS model physician focused technology company and the leading practice management software in Brazil. They empower doctors to be more independent and have more control over their careers by digitalizing their daily routine, so they can increase their productivity and deliver better healthcare. Their portfolio includes: lectronic Medical Record: First electronic medical record as a SaaS model in Brazil focused on the physician experience. Clinical Management System: with this software doctors can schedule patients online, organize their financial records, use market tools to promote their clinics and others. Telemedicine: platform to provide online consultations fully integrated with doctor's schedule and records. Physicians Marketplace: website that connects doctors and patients to schedule consultations. The net purchase price was R$182.7 million, of which: 61.5% was paid in cash, and 38.5% was paid in Afya's stock. | ||||
Afya Limited announced… Afya Limited announced that the Secretary of Regulation and Supervision of Higher Education of the Ministry of Education granted the authorization to operate the undergraduate medicine course in Santa Ines in the State of Maranhao, under Mais Medicos II program. This medical school is the first authorized in connection with the Mais Medicos program for Afya and will contribute 50 seats to our operating seats base. | ||||
Goldman Sachs analyst… Goldman Sachs analyst Irma Sgarz upgraded Afya to Buy from Neutral with a price target of $30.20, up from $23.90. The analyst see greater visibility on the short-term outlook for the next enrollment cycle and has "incremental confidence" on the company's ability to achieve guidance. While the return to on-campus classes will likely not be linear across the country, the potential downside risks from forced tuition discounts and revenue deferrals are "relatively limited" for Afya, Sgarz tells investors in a research note. Afya will post better medium-term earnings momentum than its traditional post-secondary peers since medical courses "enjoy more favorable fundamentals" compared to other generalist post-secondary courses, says the analyst. | ||||
BofA analyst Roberto… BofA analyst Roberto Otero reinstated coverage of Afya with a Buy rating and $32 price target. The analyst, who calls Afya his top-pick within the post-secondary industry in Brazil, said the company "is not immune to the challenges imposed" by COVID-19, but he sees it as largely better positioned relative to its peers given its more resilient top-line and cash-flow profile. | ||||
Reports Q2 revenue… Reports Q2 revenue R$274.2M, up 53.6% from last year. CEO Virgilio Gibbon says: "The story of the second quarter was dictated by the COVID-19 pandemic. Our priorities remain unchanged as we continue to navigate these challenging times. We are focused on taking care of our employees and students and operating in a safe environment that protects both our team members and students. To that end, in mid-March, we shifted all our classes online and moved to a remote work situation for all corporate employees. Our ability to adapt to these changes allowed us to deliver a strong performance in the second quarter and surpass our first half guidance. Importantly, we closed the quarter having exceeded all the key financial targets we laid out for first half 2020. We began the year with a very strong intake process, had completed the enrollment process and delivered 100% occupancy for the first half. We also saw strong demand for medical seats for the upcoming semester, thus, we are once again assured of 100% occupancy for the remainder of the year. The COVID-19 pandemic intensified and accelerated some behavior shifts that were already underway, and caused us to rethink where best to invest our resources. In addition, as evidenced by the pandemic, the medical community and patients alike have embraced a digital component to healthcare. We discussed in the past that digital assets were appealing to us so that we can add more services to medical students and professionals, thus maximizing our product offering. Subsequent to quarter end, we furthered our Afya Digital with the acquisition of PEBMED, our first and significant acquisition in the health tech segment. This acquisition enables us to deepen our relationships with our students as well as getting our brand in front of many new doctors, nurses and other medical personnel and students, enhancing our competitive position and our capabilities." | ||||