1Q14 Earnings Conference Call

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Amice Carr
7 years ago
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1 1Q14 Earnings Conference Call

2 CONSOLIDATED RESULTS ((R$ MILLlON)) 1Q13 1Q14 Chg.% NET REVENUE % ADJUSTED EBITDA¹ % ADJUSTED EBITDA MARGIN ² 17.9% 17.9% 0.0 p.p. ADJUSTED NET INCOME % \\ In 1Q14, the Company s total revenue reached R$ million against R$ million in 1Q13, an organic growth of 12,3% quarter-on-quarter. Except for the Telecom division, whose revenue dropped 8.4%, all other divisions reported net revenue growth in 1Q14; \\ Adjusted EBITDA 1 in 1Q14 totaled R$ 56.5 million, 13.0% up on 1Q13. The Means of Payments division in Brazil stood out, reporting an EBITDA growth of 78.6%, accounting for 22.5% of the Company s total EBITDA, which was 8.3 p.p. higher than 1Q13 figure; \\ Adjusted net income in 1Q14 was 15.3% lower quarter-on-quarter due to the increase in financial revenues, higher depreciation expenses and lower payment of Interest on Equity; \\ Payment of R$ 16.5 million in dividends and Interest on Equity. ¹ EBITDA adjusted for non-recurring results from Incard do Brasil in 1QT13 ² Adjusted EBITDA Margin does not include equity pick-up of Multidisplay and Incard (in 1Q13). ³ Net Income adjusted for deferred income tax and social contribution and non-recurring expenses. 2

3 IDENTIFICATION SYSTEMS RESULTS (R$ MILLION) 1Q13 1Q14 Chg.% NET REVENUE % EBITDA % EBITDA MARGIN 38.4% 37.3% -1.1 p.p. VOLUME % \\ Net income and EBITDA growth of 10.8% and 7.5%, respectively, compared to 1Q13: another quarter reporting good results; \\ EBITDA margin of 37.3%, virtually the same reported in the same period of The EBITDA margin of the Brazilian operation, excluding U.S. results, was 38.3%; \\ Challenge for 2014 in Brazil: implementation of infrastructure for the issue of new Identity Cards in the state of Sâo Paulo. During 1Q14, approximately R$ 10.0 million were spent with the acquisition of hardware and software necessary to issue the expected volume of 350 thousand documents per month; \\ We continued to advance with the Washington State bid and are participating in the last stage of proving technical capacity to provide the required service. 3

4 TELECOM RESULTS (R$ MILLION) 1Q13 1Q14 Chg.% NET REVENUE % ADJUSTED EBITDA % EBITDA MARGIN % 17.3% -0.8 p.p. VOLUME (million) % \\ In 1Q14, the 8.4% decline in Net Revenue is explained by the reduction of volumes sold in Brazil that was not offset by increased sales abroad; \\ The participation of other countries in the division s Net Revenue was 52.7% in 1Q14, compared to 36.9% in 1Q13. Foreign markets represented 77.6% of volume in 1Q14 vs 58.5% in 1Q13; \\ We are advancing in the process of homologation with two major U.S. telephone operators and expect sales in this market beginning in ¹ EBITDA adjusted for the non-recurring results of Incard do Brasil in 1Q13 ² Adjusted EBITDA margin does not consider equity result in Multidisplay and Incard do Brasil in 1Q13. 4

5 PAYMENT MEANS RESULTS CONSOLIDATED (R$ MILLION) 1Q13 1Q14 Chg.% NET REVENUE % ADJUSTED EBITDA % EBITDA MARGIN 7.8% 7.5% -0.3 p.p. RESULT EXCLUDING USA (R$ MILLION) 1Q13 1Q14 Chg.% NET REVENUE % EBITDA % EBITDA MARGIN 8.2% 12.6% 4.4 p.p. VOLUME % \\ EBITDA recovery (excluding USA) in the quarter, growing by 78.9% due to better margins and mix; \\ Volume increase of 28.5% over 1Q13. Higher participation of RFID, contactless and smart cards in the division s mix; \\ Positive expectation for 2014: improved sales mix and margins over 10%. 5

6 PAYMENT MEANS VALID USA (R$ MILLION) 1Q13 1Q14 Chg.% NET REVENUE % EBITDA % EBITDA MARGIN 7.2% -0.5% -7.7 p.p. VOLUME (million) % \\ In US dollar, revenue grew by 1.8%. Due to exchange rate variation (US$ 2.0 vs U$ 2.36), in reais, growth stood at 20.1%; \\ Climate conditions and mix dominated by low value-added products negatively impacted EBTDA; \\ Delivery of 2 million EMV cards in 1QT14; \\ Valid USA now answers for 22.5% of the Company s total revenue; \\ Expectations for 2014 remain positive: migration to EMV cards and margin recovery. 6

7 DIGITAL CERTIFICATION RESULTS (R$ MILLION) 1Q13 1Q14 Change NET REVENUE % ADJUSTED EBITDA N/A EBITDA MARGIN -42.5% 20.9% N/A VOLUME (thousands) % \\ Net revenue of Digital Certification division in 1Q14 was R$ 6.7 million, reaching a market share of 9%; \\ EBITDA in 1Q14 reached R$ 1.4 million, indicating a moderate and continued growth for coming quarters; \\ Revenue growth in 2014 supported by increased corporate services. 7

8 CASH POSITION March 2013 position R$ MILLION Opening Cash Balance Net Cash generated 51.1 CAPEX (36.3) Dividends and Interest on Equity (16.5) BNDES Financing 5.0 Debt (interest) (1.9) Others 1.7 Closing Cash Balance \\ Operating cash generation of R$51.7 million in 1Q14 versus an operating cash consumption of R$ 7.1 million in 1Q13; \\ CAPEX of R$ 36.3 million: \\ Investment of R$ 10 million for the new contracts in the state of São Paulo, \\ Investment of R$ 10 million for Valid US operations; \\ Payment of Dividends and Interest on Equity of R$ 16.5 million in 1Q14. 8

9 DIVIDENDS Payment of Dividends and Interest on Equity in 2014 During the quarter, R$ 10.6 million were paid as dividends, equivalent to R$ 0.19 per share, and R$ 5.9 million as Interest on Equity, equivalent to gross R$ per share (amounts subject to withholding taxes). Total amount paid was R$ 16.5 million, equivalent to the gross amount per share of R$ Due to low current leverage and solid cash flow expected for the year, we maintain our commitment to distribute at least 50% of our adjusted net income in 2014, without compromising our policy for growth through acquisitions and development of new businesses. Subsequent Event: In the Annual General Meeting held on April 24, 2014, the payment of R$7,951, as dividends, equal to the gross amount per share of R$ , which will be paid to shareholders according to their positions on May 9, 2014 based on the shareholding position of January 21, This resolution closed the distribution of profits relative to the 2013 fiscal year. 9

10 DEBT PROFILE Once again, we ratify that the Company's financial indicators in 1Q14 were below the covenants of the current issue (4th issues: Net debt/ebitda 3.00x and EBITDA/Financial expenses 1.75x). Gross Debt Cash Net Debt Net Debt / * Adjusted EBITDA 1.20 * Adjusted EBITDA / ** Financial Expenses 5.62 * Last-twelve-month adjusted EBITDA. ** Last-twelve-month financial expenses. 10

11 2014 OUTLOOK Means of Payment Brazil benefiting from the restructuring process Valid US Expectation for the year remains positive \\ Means of Payment: USA: 2 million EMV cards delivered in 1Q14 Brazil: Margin recovery and new volume mix \\ Identification Systems: USA: Strategic positioning in replicating the Brazilian model Brazil: Implementation of infrastructure for the issue of ID cards in São Paulo \\ Telecom: USA: Expectation of revenue in 2H14 Brazil: High penetration of cell phones and low churn Hispanic America: Gain of market share to offset reduction of volumes in Brazil \\ Digital Certification: Increased share of corporate services.

12 DISCLAIMER This presentation contains forward-looking statements relating to the business prospects, estimates of operating and financial results, and those related to the growth prospects of Valid. These are merely projections and, as such, are based exclusively on the expectations of Valid s management concerning the future of the business and its continuous access to capital to finance the Company s business plan. Such forward-looking statements depend substantially on changes in market conditions, government regulations, competitive pressures, performance of the sector and the Brazilian economy, among other factors, besides the risks presented in the documents disclosed and filed by Valid and are, therefore, subject to change without prior notice. 12

JBS reports R$3.6 billion in EBITDA and net revenue of R$38.9 billion in 2Q15

JBS S.A. (BVM&FBOVESPA: JBSS3; OTCQX: JBSAY) São Paulo, August 13 th, 2015 JBS reports R$3.6 billion in EBITDA and net revenue of R$38.9 billion in JBS S.A. announces results for its second quarter 2015