Afya Limited Stock Price, News & Analysis

Afya Limited (NASDAQ: AFYA) has initiated a new share repurchase program after completing its previous one, which bought back 1,874,457 Class A shares. The new program allows for the repurchase of up to 2,000,000 shares, representing about 5.8% of its free float, approved by the Board on March 23, 2023. These repurchases will be conducted through a trading plan with BofA Securities, adhering to SEC regulations. The shares are intended for use in stock option programs, future business combinations, and corporate purposes. Purchases will depend on market conditions and are expected to enhance shareholder value.

Afya Limited (Nasdaq: AFYA) reported robust financial results for Q4 and FY 2022, achieving a 32.3% year-over-year increase in adjusted net revenue to R$2.32 billion. Q4 adjusted net revenue rose 17.8% to R$595.1 million, with adjusted EBITDA up 24.1% to R$242.2 million, resulting in a margin of 40.7%. Adjusted net income for Q4 surged 30.8% to R$128.8 million, reflecting a 53.3% EPS growth. The company also announced a guidance range for 2023 of R$2.75 billion to R$2.85 billion in adjusted revenue.

Afya Limited has completed the acquisition of 100% of Sociedade Educacional e Cultural Sergipe DelRey Ltda. for an enterprise value of R$825 million. The acquisition enhances Afya's portfolio by adding 340 medical school seats, increasing its total to 3,163, with projected annual revenue of R$261 million by 2024. A contingent payment could add R$1.25 million per seat if the Ministry of Education approves additional medical seats by December 2024. This marks Afya's largest acquisition to date, expanding its presence into the Alagoas state and reinforcing its leadership in Brazilian medical education.

Afya Limited (NASDAQ: AFYA) announced the authorization of an increase of 64 medical seats at Faculdade Santo Agostinho in Itabuna, Bahia, now totaling 149 seats. This boosts Afya's overall approved medical seats to 2,823, potentially serving around 20,326 students at maturity, considering financial aid programs. As of September 30, 2022, Afya had 17,997 medical students. This growth highlights Afya's position as a leading medical education provider in Brazil, focused on enhancing educational opportunities for future physicians.

Afya Limited (NASDAQ: AFYA) has successfully completed the issuance of 500,000 non-convertible, unsecured debentures totaling R$500 million through its subsidiary, Afya Participações S.A. The debentures have a maturity date of January 15, 2028, with principal amortization planned for January 15, 2027, and January 15, 2028. Interest will be paid semi-annually at a rate of 100% of the CDI plus 1.80%. Proceeds from this issuance will enhance Afya's cash position and extend its debt maturity profile.

Afya Limited announced significant board changes, including the resignation of board member Daulins Emilio and the end of Flávio Dias's term as an independent director. Tina Krebs has been appointed to replace Emilio, increasing the female representation on the board to 40%. The remaining independent board members will continue until the next Annual General Meeting. This restructuring is expected to enhance decision-making through a diverse range of skills and experiences.

Afya Limited (AFYA) plans to issue 500,000 non-convertible, unsecured debentures through its subsidiary, totaling R$500 million. The offering will occur in Brazil under CVM Rule No. 476 and is not registered in the United States. Proceeds will strengthen cash positions and extend debt maturities. The debentures are set to mature on January 15, 2028, with principal amortization in two installments in 2027 and 2028. This announcement does not constitute an offer in the U.S. and includes forward-looking statements subject to risks and uncertainties.

Afya Limited (NASDAQ: AFYA) will release its Third Quarter and Nine Months 2022 Financial Results on November 21, 2022, after market close. A conference call and webcast will follow at 5:00 PM ET. Analysts' consensus figures for 3Q22 show net revenue estimates ranging from R$ 555 million to R$ 599 million with an average of R$ 579 million. Adjusted EBITDA estimates are projected between R$ 205 million and R$ 245 million, with an average of R$ 228 million and an adjusted EBITDA margin of 39%.