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cogna EDUCAÇÃO EARNINGS RELEASE 1Q21 Belo Horizonte , May 14 , 2021 , Cogna Educação S.A. ( B3 : COGN3 ; OTCQX : COGNY ) - " Cogna " or " Company " announces today the results for the first quarter of 2021 ( 1Q21 ) . The Company's financial information is presented on a consolidated basis and in Brazilian real , in accordance with Brazilian Corporate Law and Generally Accepted Accounting Principles in Brazil ( BRGAAP ) , and already conforms to International Financial Reporting Standards ( IFRS ) , except when stated otherwise . FINANCIAL HIGHLIGHTS Values in R $ ( ' 000 ) Net Revenue Recurring EBITDA Recurring EBITDA Margin Adjusted Net Income² -23,2 % -464,0 % 1Q21 1Q20 Chg . % 4Q20 Chg . % 1.262.384 1.627.468 365.814 29,0 % 440.254 27,1 % -22,4 % -16,9 % 1,9 p.p. 1.643.048 ( 100.493 ) -6,1 % 6.495 46.809 -86,1 % ( 589.232 ) 35,1 p.p. -101,1 % 0,5 % 2,9 % -2,4 p.p. -35,9 % 169.590 46,4 % ( 146.670 ) -33,3 % -215,6 % 79,7 p.p. Adjusted Net Margin Operating Cash Generation ( OCG ) after Capex³ OCG after Capex / Recurring EBITDA 58.377 -58,1 % 36,4 p.p. 190,5 % 104,4 p.p. 1 EBITDA considers interest and late - payment fees and excludes impacts from inventory surplus value ; 2 Net income adjusted by amortization of intangible assets , inventory surplus value , recognition of asset impairment losses and write - off of deferred assets . 3 Includes organic capex and investments with M & A and Expansion . Net revenue fell 22 % year - on - year , reflecting revenue pressures in higher education and basic education , in addition to the lower sales volume to the National Textbook Program ( PNLD ) due to seasonality , partially offset by continued growth at Platos ( + 14 % ) . Recurring EBITDA decreased by 17 % , but with an expansion of 1.9 pp at the margin , due to gains from the restructuring process of Kroton ( whose recurring EBITDA grew 18 % , with 9.3 p.p. of expansion at the margin ) and the greater profitability in the division of other businesses . This effect was partially offset by basic education operations ( Vasta and Saber ) , which had an impact due to the pandemic . Adjusted net income of R $ 6 million , reflecting the reduction in operating income and the higher incidence of non- recurring expenses ( associated with the restructuring of Kroton ) , partially offset by lower financial expenses . Excluding non - recurring expenses with a non - cash effect , adjusted net income would have been R $ 42 million , 11 % lower than 1Q20 . The net accounting loss was R $ 91 million . Post - capex Operating Cash flow Generation ( OCG ) of R $ 170 million , versus consumption of R $ 147 million in the previous year . Excluding the prepayment of credit card receivables in the amount of R $ 108 million , the 1Q21 OCG would still have been positive by R $ 62 million . Net debt / adjusted EBITDA in the last 12 months reached 1.97x , below the limit of 3x . Based on the waiver granted by the debenture holders on May 5 , adjusted EBITDA disregards the extraordinary adjustments to allowance for doubtful accounts recorded in 2020 ( R $ 644 million ) from 4Q20 to 3Q21 . Negotiation gives comfort to go through a period of greater leverage for the Company , which should reach an inflection point throughout 2021 . OPERATING HIGHLIGHTS Kroton . Restructuring of the Campus operation concluded and notable capture of efficiencies in 1Q21 , with a 9.3 p.p. expansion in the recurring EBITDA margin . First half intakes grew 5 % , with emphasis on the Digital segment ( 100 % Digital ) , which grew 42 % in volume and 43 % in revenue . The hybrid segment ( Hybrid and Premium DL ) had a 15 % growth in revenue , mainly driven by the DL premium , whose revenue grew 68 % . Vasta . Subscription revenue grew 11 % in the 2021 business cycle ( 4Q20 + 1Q21 ) , with the sum of ex - PAR subscription revenues ( traditional learning systems and complementary solutions ) expanded by 21 % . PAR and the non - subscription segment were affected by the greater reuse of textbooks . EARNINGS CONFERENCE CALL Date : May 14 - 4 p.m. ( Brasília ) | 3 p.m. ( New York ) | Dial - in : 1 412 717-9627 | 1 844 204-8942 | Code : Cogna