Arco Platform Ltd.

CIK:0001740594|SEC Filings

Consolidated statements of income or loss - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Consolidated statements of income
Revenue	R$ 1,775,427	R$ 1,232,074	R$ 1,001,710
Cost of sales	(500,526)	(294,407)	(221,130)
Gross profit	1,274,901	937,667	780,580
Selling expenses	(665,014)	(496,298)	(372,269)
General and administrative expenses	(338,262)	(328,643)	(270,558)
Other income (expenses), net	23,904	16,673	(2,258)
Operating profit	295,529	129,399	135,495
Finance income	445,237	91,212	45,211
Finance costs	(638,483)	(372,086)	(142,013)
Finance result	(193,246)	(280,874)	(96,802)
Share of (loss) profit of equity-accounted investees	(34,365)	(22,182)	409
Profit (loss) before income taxes	67,918	(173,657)	39,102
Income taxes - income (expense)
Current	(44,473)	(65,609)	(87,379)
Deferred	16,044	81,183	65,057
Income taxes - income (expense)	(28,429)	15,574	(22,322)
Net profit (loss) for the year	39,489	(158,083)	16,780
Profit (loss) for the year attributable to equity holders of the parent	R$ 39,489	R$ (158,083)	R$ 16,780
Class A
Income taxes - income (expense)
Basic earnings (loss) per share - in Brazilian reais	R$ 0.71	R$ (3.18)	R$ 0.30
Diluted earnings (loss) per share - in Brazilian reais	(1.49)	(3.18)	0.30
Class B
Income taxes - income (expense)
Basic earnings (loss) per share - in Brazilian reais	0.71	(3.18)	0.30
Diluted earnings (loss) per share - in Brazilian reais	R$ 0.71	R$ (3.18)	R$ 0.30

Consolidated statements of cash flows - BRL (R$) R$ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Operating activities
Profit (loss) before income taxes	R$ 67,918	R$ (173,657)	R$ 39,102
Adjustments to reconcile profit (loss) before income taxes to cash from operations
Depreciation and amortization	277,458	194,885	127,455
Inventory allowances	40,671	26,778	7,453
(Reversal) provision for expected credit losses	(2,247)	26,610	34,684
Loss on sale/disposal of property and equipment and intangible	430	908	4,277
Fair value change in derivative financial instruments	(106,379)	37,291	(562)
Fair value adjustment in accounts payable to selling shareholders	568	87,820	20,330
Share of loss (profit) of equity-accounted investees	34,365	22,182	(409)
Share-based compensation plan	35,571	70,127	36,333
Accrued interest on loans and financing	247,834	57,245	19,862
Interest accretion on accounts payable to selling shareholders	184,218	121,611	68,379
Income from financial investments	(19,461)	(25,930)	(13,388)
Interest on lease liabilities	4,422	4,795	3,036
Provision (reversal) for legal proceedings	1,776	(149)	587
Provision (reversal) for payroll taxes (restricted stock units)	2,024	235	(2,997)
Foreign exchange effects, net	(45,289)	1,772	(188)
Changes in fair value of step acquisitions			307
Gain on changes of interest of investment	(17,712)	(14,022)
Other financial expense (income), net	(3,945)	(1,276)	(2,315)
Total adjustments to reconcile (loss) profit before income taxes to cash from operations	702,222	437,225	341,946
Changes in operating assets and liabilities
Trade receivables	(263,364)	(184,472)	(108,087)
Inventories	(122,609)	(62,212)	(18,161)
Recoverable taxes	(16,736)	(39,199)	3,152
Other assets	(28,601)	(62,802)	(14,087)
Trade payables	79,456	52,915	3,886
Labor and social obligations	6,062	(6,640)	7,239
Taxes and contributions payable	1,379	(2,590)	1,147
Advances from customers	(19,212)	11,665	(2,981)
Other liabilities	2,672	(5,724)	(1,420)
Cash from operations	341,269	138,166	212,634
Income taxes paid	(53,676)	(72,564)	(95,053)
Interest paid on lease liabilities	(3,991)	(3,294)	(2,100)
Interest paid on accounts payable to selling shareholders	(72,930)	(13,700)	(187)
Interest paid on loans and financing	(164,536)	(20,275)	(13,423)
Payments for contingent consideration	(70,687)	(3,837)	(9,520)
Payment for stock options - Greekie	(75,578)
Net cash flows (used in) generated from operating activities	(100,129)	24,496	92,351
Investing activities
Acquisition of property and equipment	(14,322)	(60,078)	(10,822)
Payment of investments and interests in other entities	(32)	(125,273)	(32,628)
Acquisition of subsidiaries, net of cash acquired		(795,905)	(204,286)
Payments of accounts payable to selling shareholders	(1,270)	(101,286)
Acquisition of intangible assets	(165,846)	(151,318)	(96,827)
Purchase of financial investments	(975,525)	(2,269,029)	(1,767,913)
Redemption of financial investments	1,537,243	1,963,256	1,603,896
Interest received from financial investments	49,153	40,641	33,904
Loans to related parties	(4,811)	5,000	(5,000)
Net cash flows (used in) generated from investing activities	424,590	(1,493,992)	(479,676)
Financing activities
Capital increase proceeds from public offering			591,898
Share issuance costs			(16,291)
Purchase of treasury shares	(53,139)	(200,751)
Payment of lease liabilities	(21,485)	(15,729)	(8,510)
Payment of accounts payable to selling shareholders	(309,682)	(193,954)	(1,733)
Cash received (payment) for financial derivatives	(2,474)	185,409
Loans and financing issued, net of costs	1,188,980	1,578,298	498,434
Loans and financing payments	(1,120,024)	(109,815)	(301,151)
Net cash flows (used in) generated from financing activities	(317,824)	1,243,458	762,647
Foreign exchange effects on cash and cash equivalents	(1,420)	12,771	188
Increase (decrease) in cash and cash equivalents	5,217	(213,267)	375,510
Cash and cash equivalents at the beginning of the year	211,143	424,410	48,900
Cash and cash equivalents at the end of the year	R$ 216,360	R$ 211,143	R$ 424,410

Consolidated statements of financial position - BRL (R$) R$ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	R$ 216,360	R$ 211,143
Financial investments	391,785	973,294
Trade receivables	856,887	593,263
Inventories	254,060	158,582
Recoverable taxes	67,166	38,811
Derivative financial instruments		301
Related parties	3,956	4,571
Other assets	82,515	66,962
Total current assets	1,872,729	2,046,927
Non-current assets
Financial investments	30,861	40,762
Derivative financial instruments		560
Related parties		6,819
Recoverable taxes	11,108	22,216
Deferred income tax	337,267	321,223
Other assets	78,038	57,534
Investments and interests in other entities	111,631	126,873
Property and equipment	59,031	73,885
Right-of-use assets	68,696	35,960
Intangible assets	3,184,047	3,257,360
Total non-current assets	3,880,679	3,943,192
Total assets	5,753,408	5,990,119
Current liabilities
Trade payables	182,748	103,292
Labor and social obligations	89,044	157,601
Lease liabilities	34,329	20,122
Loans and financing	102,873	228,448
Derivative financial instruments	3,693
Taxes and contributions payable	9,488	7,953
Income taxes payable	28,576	37,775
Advances from customers	16,079	35,291
Accounts payable to selling shareholders	1,060,746	799,553
Other liabilities	6,013	3,176
Total current liabilities	1,533,589	1,393,211
Non-current liabilities
Labor and social obligations	1,451	661
Lease liabilities	42,576	22,996
Loans and financing	1,833,956	1,602,879
Derivative financial instruments	110,154	223,561
Provision for legal proceedings	3,174	1,398
Accounts payable to selling shareholders	330,457	869,233
Other liabilities	621	946
Total non-current liabilities	2,322,389	2,721,674
Total liabilities	3,855,978	4,114,885
Equity
Share capital	11	11
Capital reserve	2,009,799	2,203,857
Treasury shares	(8,205)	(180,775)
Share-based compensation reserve	95,008	90,813
Accumulated losses	(199,183)	(238,672)
Total equity	1,897,430	1,875,234
Total liabilities and equity	R$ 5,753,408	R$ 5,990,119