Vasta Platform (US:VSTA)2022-08-11 16:00Financial Performance - Net revenue from sales and services for the six-month period ended June 30, 2022, was R$570,537, up 35.3% from R$421,967 in the same period of 2021[7] - Gross profit for the six-month period increased to R$361,334, representing a 50.2% increase from R$240,438 in the prior year[7] - The company reported a loss for the period of R$54,471 for the six months ended June 30, 2022, compared to a loss of R$67,714 in the same period of 2021, showing a reduction in losses[9] - Operating loss before finance results and taxes was R$88,313 for the six-month period, compared to a loss of R$98,392 in the same period of 2021, indicating an improvement[11] - For the six months ended June 30, 2022, total revenues were $12.8 million, an increase from $10.4 million in the same period of 2021, representing a growth of approximately 23%[79] - The company reported finance costs of $18.77 million for the six months ended June 30, 2022, compared to $12.85 million in the same period of 2021, indicating a significant increase of approximately 46%[79] Assets and Liabilities - Total assets increased to R$7,417,977 as of June 30, 2022, compared to R$7,333,407 as of December 31, 2021, reflecting a growth of 1.15%[3] - Total current liabilities rose to R$888,143 as of June 30, 2022, from R$778,252 as of December 31, 2021, an increase of 14.1%[5] - The company’s total liabilities as of June 30, 2022, were R$1,889,629, compared to R$1,828,139 at the end of 2021[34] - The company reported a total current and non-current liabilities of R$2,796,626 as of June 30, 2022, compared to R$1,716,761 in the previous year, reflecting an increase of about 62.9%[105] Cash Flow and Investments - Cash generated from operating activities was R$175,536 for the six-month period, significantly up from R$14,351 in the same period of 2021[11] - The company incurred finance costs of R$127,865 for the six-month period, compared to R$40,488 in the same period of 2021, indicating a significant increase in financing expenses[7] - For the six-month period ended June 30, 2022, Vasta Platform Limited reported a net cash decrease of R$162,131 compared to an increase of R$23,942 in the same period of 2021[12] - The company made a minority investment of R$158 million for a 47.4% stake in Educbank, aimed at expanding access to quality education in Brazil[109] - The company also invested R$8.2 million for a 10% stake in Flex Flix, an internet-based education/edutainment company, to diversify its offerings[111] Shareholder Equity and Capital - Shareholder's equity decreased to R$4,621,351 as of June 30, 2022, down from R$4,665,209 as of December 31, 2021, a decline of 0.94%[5] - The company's share capital as of June 30, 2022, was represented by 83,478,668 shares, with 64,436,093 shares held by Cogna Group, which holds 97.1% of the combined voting power[91] Revenue Streams - The Content & EdTech platform generated net revenue of R$495,965 for the six months ended June 30, 2022, compared to R$350,378 in the same period of 2021, marking a growth of approximately 41.5%[105] - The Digital Services platform reported net revenue of R$74,572 for the six months ended June 30, 2022, up from R$71,589 in the previous year, indicating a growth of about 4.1%[105] - The Company’s digital service platform generated R$16,146 thousand in revenue for the three months ended June 30, 2022, compared to R$14,380 thousand in the same period of 2021, reflecting a growth of 12.3%[97] Tax and Legal Matters - The provision for tax, civil, and labor losses totaled $664.19 million as of June 30, 2022, up from $645.62 million at the end of 2021, reflecting an increase of about 2.8%[83] - The effective tax rate for the period ended June 30, 2022, was 38%, compared to 31% for the same period in 2021, indicating a notable increase in the tax burden[89] - The total liabilities related to tax proceedings were $628.31 million as of June 30, 2022, an increase from $607.08 million at the end of 2021, showing a rise of approximately 3.7%[83] Operational Metrics - The company recognized a rent expense of R$ 13,657 for short-term leases and low-value assets for the six-month period ended June 30, 2022, compared to R$ 11,404 for the same period in 2021[67] - The company’s short-term employee benefits for key management personnel amounted to $3.40 million for the six months ended June 30, 2022, compared to $1.51 million in the same period of 2021, reflecting an increase of approximately 125%[81] - The company incurred R$67,606 thousand in depreciation and amortization for the three months ended June 30, 2022, compared to R$50,314 thousand for the same period in 2021, marking a 34.4% increase[100] Market and Economic Context - The Company’s revenue is subject to seasonality, with higher revenue typically occurring in the first and fourth quarters due to the timing of school year materials delivery[98] - The company aims to unify the school administrative ecosystem through its digital platform, enhancing educational strategies for private schools[32]