2Q09 EARNINGS MAIN INDICATORS

Transcription

1 2Q09 EARNINGS CONFERENCE CALL 08/13/2009 (THURSDAY) English: Kroton reports 2Q09 EBITDA growth of 61.7% to R$ 48.6 million. Supported by gross margin expansion of 4.0 p.p. and lower operating expenses, Kroton achieves EBITDA margin expansion in the quarter of 2.9 p.p. versus 2Q08. In the first six months of 2009, Kroton records growth of 29% in net revenue and an increase in net income of 199.5% to R$ 31.2 million. Portuguese: Belo Horizonte, August 12th, Kroton Educacional S/A (Bovespa: KROT11), Kroton or Company, announces today its results for the second quarter of fiscal year Except where stated otherwise, the Company s operating and financial information are presented on a consolidated basis and in Brazilian real, in accordance with Brazilian Corporate Law, and the analyses presented in this report refer to the Company s performance in the second quarter of 2009 (2Q09) compared with the second quarter of 2008 (2Q08). MAIN INDICATORS Values in R$ (thousand) 2Q09 2Q08 Var. 6M09 6M08 Var. Gross Sales Revenue 101,758 77, % 218, , % Net Sales Revenue 90,574 70, % 198, , % Net Income 6,316 2, % 31,221 25, % Net Income Margin 7.0% 3.0% 4.0 p.p 15.8% 18.3% (2.6) p.p. EBITDA 12,947 8, % 48,643 33, % EBITDA Margin 14.3% 11.4% 2.9 p.p 24.6% 24.0% 0.5 p.p Adjusted Net Income 7,438 5, % 32,967 31, % Adjusted Net Income 8.2% 8.3% (0.1) p.p. 16.6% 22.5% (5.9) p.p. Final Number of Students 2Q09 2Q08 Var. Primary and Secondary 226, , % Pitágoras 38,490 32, % INED 4,740 3, % Post-Secondary Education 43,230 35, % Closing quote on 08/12/ Price: R$16.60 / unit - Market Capitalization: R$ million

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4 MAIN Primary and Secondary Education Learning System -Private Learning System -Public School Operations 654 schools in Brazil and 6 in Japan Educational solutions for improving the quality of public schools. Colégio Pitágoras Cidade Jardim (MG) Colégio Pitágoras São Luis (MA) CVRD Carajás (PA) Embraer São José dos Campos (SP) Mineração Fazenda Brasileiro Teofilândia (BA) Mineração Taboca Pitinga (AM) Mineração Onça Puma - Ourilândia do Norte(PA) Colégio da Lagoa (MG) Post- Secondary Education Bachelor Degree Programs Associate Degree Programs Campi Belo Horizonte (MG) - 3 units Londrina (PR) Nova Lima (MG) São Luís (MA) Jundiaí (SP) Betim (MG) Vitória (ES) Divinópolis (MG) Guarapari (ES) Ipatinga (MG) Linhares (ES) Uberlândia (MG) Rio de Janeiro (RJ) Poços de Caldas (MG) Teixeira de Freitas (BA) BH Centro(MG) BH Pampulha(MG) Guarapari(ES) Uberlândia (MG) Contagem (MG) Divinópolis(MG) Londrina (PR) Venda Nova(MG) Jundiaí(SP) Linhares (ES) Rio Claro (SP) Assessment 2Q08 NET REVENUE MIX NATIONAL PRESENCE Primary and Secondary Education 34,4% Post- Secondary Education 65,6% 2Q09 NET REVENUE MIX 654 Primary and Secondary Associate Schools in Brazil (+6 in Japan) 17 Pitágoras campuses Primary and Secondary Education 29,7% Post- Secondary Education 70,3% 11 INED campuses 10

5 OPERATING REVENUE Net revenue % Valores em R$ ('000) 2Q09 2Q08 Var. 6M09 6M08 Var. 2Q09 2Q08 Var. 6M09 6M08 Var. Gross Sales Revenue 101,758 77, % 218, , % 112.3% 109.9% 2.5 p.p 110.3% 108.8% 1.5 p.p Primary and Secondary Education 29,090 25, % 75,334 65, % 108.0% 105.0% 2.9 p.p 104.9% 106.0% (1.0) p.p. Post-secondary Education 72,668 51, % 143,035 87, % 114.2% 112.4% 1.8 p.p 113.3% 110.9% 2.4 p.p Others - 0 (100.0)% - 40 (100.0)% % - (-) Deductions (11,184) (6,938) 61.2% (20,339) (12,372) 64.4% (12.3)% (9.9)% (2.5) p.p. (10.3)% (8.8)% (1.5) p.p. Primary and Secondary Education (2,149) (1,214) 76.9% (3,544) (3,703) (4.3)% (8.0)% (5.0)% (2.9) p.p. (4.9)% (6.0)% 1.0 p.p Taxes (PIS, Cofins, ISS and ICMS) (705) (637) 10.7% (1,183) (1,095) 8.0% (2.6)% (2.6)% 0.0 p.p (1.6)% (1.8)% 0.1 p.p Returns (1,433) (560) 155.9% (2,196) (1,883) 16.6% (5.3)% (2.3)% (3.0) p.p. (3.1)% (3.0)% (0.0) p.p. Others (11) (17) (35.3)% (165) (725) (77.2)% (0.0)% (0.1)% 0.0 p.p (0.2)% (1.2)% 0.9 p.p Post Secondary Education (9,035) (5,724) 57.8% (16,795) (8,669) 93.7% (14.2)% (12.4)% (1.8) p.p. (13.3)% (10.9)% (2.4) p.p. Taxes (PIS, Cofins, ISS) (2,071) (1,313) 57.7% (4,106) (2,137) 92.1% (3.3)% (2.8)% (0.4) p.p. (3.3)% (2.7)% (0.6) p.p. ProUni (5,962) (3,800) 56.9% (10,798) (5,569) n.m (9.4)% (8.2)% (1.1) p.p. (8.6)% (7.0)% (1.5) p.p. Returns (141) (135) 4.4% (435) (311) 39.9% (0.2)% (0.3)% 0.1 p.p (0.3)% (0.4)% 0.0 p.p Unconditional Discounts (861) (476) 80.9% (1,456) (652) 123.3% (1.4)% (1.0)% (0.3) p.p. (1.2)% (0.8)% (0.3) p.p. Net Revenue 90,574 70, % 198, , % 100.0% 100.0% 0.0 p.p 100.0% 100.0% 0.0 p.p Primary and Secondary Education 26,941 24, % 71,790 61, % 29.7% 34.4% (4.6) p.p. 36.3% 43.9% (7.6) p.p. Post-secondary Education 63,633 46, % 126,240 79, % 70.3% 65.6% 4.6 p.p 63.7% 56.1% 7.7 p.p Others - 0 (100.0)% - 40 (100.0)% 0.0% 0.0% (0.0) p.p. 0.0% 0.0% (0.0) p.p. TOTAL GROSS REVENUE

6 GROSS REVENUE GROWTH (R$ million) 100,0 90,0 80, ,0 60,0 50,0 40,0 30,0 20,0 10,0 0, Q06 2Q07 2Q08 2Q09 Primary and Secondary Education Post-Secondary Education Average Number of Students 2Q09 2Q08 Var. 6M09 6M08 Var. Pitágoras # 38,439 31, % 38,289 26, % INED 5,038 3, % 5,062 3, % Post-Secondary Education 43,477 35, % 43,351 29, %

7 GROSS REVENUE DEDUCTIONS Post-Secondary Education:

8 Primary and Secondary Education: TOTAL NET REVENUE

9 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0, NET REVENUE GROWTH (R$ million) Q06 2Q07 2Q08 2Q09 Primary and Secondary Education Post Secondary Education COST OF PRODUCTS AND SERVICES Values in R$ (thousand) 2Q09 2Q08 Var. 6M09 6M08 Var. Cost of Products and Services (58,864) (48,451) 21.5% (113,277) (79,488) 42.5% Cost of Products Sold (3,455) (3,889) -11.2% (10,651) (8,401) 26.8% Cost of Services (55,409) (44,561) 24.3% (102,626) (71,087) 44.4% Cost of Products and Services / % Net Revenue -65.0% -69.0% 4.0 p.p -57.2% -56.3% (0.9) p.p. Cost of Products Sold / % Net Revenue -3.8% -5.5% 1.7 p.p -5.4% -5.9% 0.6 p.p Cost of Services / % Net Revenue -61.2% -63.5% 2.3 p.p -51.8% -50.3% (1.5) p.p.

10 GROSS PROFIT AND GROSS MARGIN Net revenue % Net revenue % Values in R$ (thousand) 2Q09 2Q08 Var. 6M09 6M08 Var. 2Q09 2Q08 Var. 6M09 6M08 Var. Gross Revenue 101,758 77, % 218, , % 112.3% 109.9% 2.5 p.p 110.3% 108.8% 1.5 p.p (-) Deductions (11,184) (6,938) 61.2% (20,339) (12,372) 64.4% -12.3% -9.9% (2.5) p.p % -8.8% (1.5) p.p. Net Revenue 90,574 70, % 198, , % 100.0% 100.0% 0.0 p.p 100.0% 100.0% 0.0 p.p (-) Cost of Products and Services (58,864) (48,451) 21.5% (113,277) (79,488) 42.5% -65.0% -69.0% 4.0 p.p -57.2% -56.3% (0.9) p.p. Gross Profit 31,710 21, % 84,753 61, % 35.0% 31.0% 4.0 p.p 42.8% 43.7% (0.9) p.p.

11 OPERATING EXPENSES Net revenue % Net revenue % Values in R$ (thousand) 2Q09 2Q08 Var. 6M09 6M08 Var. 2Q09 2Q08 Var. 6M09 6M08 Var. Gross Profit 31,710 21, % 84,753 61, % 35.0% 31.0% 4.0 p.p 42.8% 43.7% (0.9) p.p. Gross Margin 35.0% 31.0% 4.0 p.p 42.8% 43.7% (0.9) p.p Operating Expenses (Income) (22,531) (18,203) 23.8% (43,656) (34,644) 26.0% (24.9)% (25.9)% 1.0 p.p (22.0)% (24.5)% 2.5 p.p Selling Expenses (12,049) (7,914) 52.3% (21,941) (14,473) 51.6% (13.3)% (11.3)% (2.0) p.p. (11.1)% (10.3)% (0.8) p.p. Personnel Expenses (4,732) (3,353) 41.1% (9,060) (7,326) 23.7% (5.2)% (4.8)% (0.4) p.p. (4.6)% (5.2)% 0.6 p.p General and Administrative (6,549) (5,518) 18.7% (13,783) (10,890) 26.6% (7.2)% (7.9)% 0.6 p.p (7.0)% (7.7)% 0.8 p.p. Other Operating Income (Expenses) % 1,439 1,460 (1.4)% 1.1% 1.1% (0.1) p.p. 0.7% 1.0% (0.3) p.p. Goodwill Amortization (156) (2,224) (93.0)% (311) (3,415) (90.9)% (0.2)% (3.2)% 3.0 p.p (0.2)% (2.4)% 2.3 p.p. Operating Result Before Financial Result 9,179 3, % 41,097 27, % 10.1% 5.1% 5.1 p.p 20.8% 19.2% 1.6 p.p.

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13 30,0 25,0 SALES, GENERAL AND ADMINISTRATIVE EXPENSES (SG&A) & SG&A/NET REVENUE (R$ million) Reduction due to gains of scale and synergies. 20.8% % ,0% 20,5% 20,0 15,0 10, % 18.7% 20,0% 19,5% 19,0% 18,5% 5,0 18,0% 0,0 2Q08 2Q09 6M08 6M09 SG&A / % Net Revenue 17,5% *Excluding Goodwill Amortization and Provision for Doubtful Accounts.

14 EBITDA AND EBITDA MARGIN Net revenue % Net revenue % Values in R$ (thousand) 2Q09 2Q08 Var. 6M09 6M08 Var. 2Q09 2Q08 Var. 6M09 6M08 Var. Net Income 6,316 2, % 31,221 25, % 7.0% 3.0% 4.0 p.p 15.8% 18.3% (2.6) p.p. (-) Income Tax and Social Contribution 1,322 3,728 (64.5)% 7,754 10,394 (25.4)% 1.5% 5.3% (3.8) p.p. 3.9% 7.4% (3.4) p.p. (-) Financial Results 1,574 (2,268) (169.4)% 2,197 (9,203) (123.9)% 1.7% (3.2)% 5.0 p.p 1.1% (6.5)% 7.6 p.p (+) Goodwill Amortization 156 2,224 (93.0)% 311 3,415 (90.9)% 0.2% 3.2% (3.0) p.p. 0.2% 2.4% (2.3) p.p. (+) Depreciation and Amortization 3,579 2, % 7,160 3, % 4.0% 3.2% 0.8 p.p 3.6% 2.5% 1.2 p.p EBITDA 12,947 8, % 48,643 33, % 14.3% 11.4% 2.9 p.p 24.6% 24.0% 0.5 p.p EBITDA Margin 14.3% 11.4% 25.3% 24.6% 24.0% 2.1% EBITDA & EBITDA MARGIN (R$ million) 80,0 30,0% 70,0 60,0 50,0 40,0 30,0 20,0 10,0 11.4% % ,0% 34,0 24.6% 48,6 25,0% 20,0% 15,0% 10,0% 5,0% 0,0 2Q08 2Q09 6M08 6M09 0,0% EBITDA Margin

15 NET FINANCIAL RESULT Net revenue % Net revenue % Values in R$ (thousand) 2Q09 2Q08 Var. 6M09 6M08 Var. 2Q09 2Q08 Var. 6M09 6M08 Var. Financial Result (1,574) 2,268 (169.4)% (2,197) 9,203 (123.9)% -1.7% 3.2% (5.0) p.p. -1.1% 6.5% (7.6) p.p. Financial Revenue (i) 2,752 6,939 (60.3)% 6,429 15,430 (58.3)% 3.0% 9.9% (6.8) p.p. 3.2% 10.9% (7.7) p.p. Financial Expenses (4,326) (4,671) (7.4)% (8,626) (6,227) 38.5% -4.8% -6.7% 1.9 p.p -4.4% -4.4% 0.1 p.p Bank Expenses (ii) (1,007) (941) 7.0% (1,353) (1,206) 12.2% -1.1% -1.3% 0.2 p.p -0.7% -0.9% 0.2 p.p Interest on Loans (iii) (390) (729) (46.5)% (838) (1,338) (37.4)% -0.4% -1.0% 0.6 p.p -0.4% -0.9% 0.5 p.p Conditional Discounts (iv) (2,557) (2,918) (12.4)% (5,107) (3,496) 46.1% -2.8% -4.2% 1.3 p.p -2.6% -2.5% (0.1) p.p. Monetary Passive Variation (v) (372) (83) 348.2% (1,328) (187) 610.2% -0.4% -0.1% (0.3) p.p. -0.7% -0.1% (0.5) p.p. INCOME TAX AND SOCIAL CONTRIBUITION ON NET PROFIT

16 NET INCOME AND ADJUSTED NET INCOME Net revenue % Net revenue % Values in R$ (thousand) 2Q09 2Q08 Var. 6M09 6M08 Var. 2Q09 2Q08 Var. 6M09 6M08 Var. Net Income 6,316 2, % 31,221 25, % 7.0% 3.0% 4.0 p.p 15.8% 18.3% (2.6) p.p. Income Tax and Social Contribution 966 1,482 (34.8)% 1,435 2,535 (43.4)% 1.1% 2.1% (1.0) p.p. 0.7% 1.8% (1.1) p.p. Goodwill Amortization 156 2,224 (93.0)% 311 3,415 (90.9)% 0.2% 3.2% (3.0) p.p. 0.2% 2.4% (2.3) p.p. Adjusted Net Income 7,438 5, % 32,967 31, % 8.2% 8.3% (0.1) p.p. 16.6% 22.5% (5.9) p.p. Adjusted Net Income Margin 8.2% 8.3% (0.8)% 16.6% 22.5% (26.2)% NET INCOME & NET INCOME MARGIN (R$ million) 35,0 18.3% ,0% 30,0 25, % 18,0% 16,0% 14,0% 20,0 12,0% 10,0% 15,0 7.0% 8,0% 10,0 5,0 3.0% ,0% 4,0% 2,0% - 2Q08 2Q09 6M08 6M09 Net Income Margin 0,0%

17 CAPITAL AND CASH Values in R$ (thousand) 2Q09 1Q09 Var. Cash and Banks (25,8)% Loans and financing (4,5)% Short-term Debt (2,3)% Long-term Debt (5,6)% Shareholders Equity (1,3)% Total Capitalization (1,4)% Net Cash (29,8)%

18 CASH FLOW AND INVESTMENTS (R$ million) 12,9 (1,3) (1,6) (3,7) (18,9) 105,0 (11,8) (3,9) 2,0 (0,8) 77,9 (57.0)

19 RESULTS ADJUSTED FOR CONDITIONAL DISCOUNTS Values in R$ (thousand) 2Q09 2Q08 Var. 6M09 6M08 Var. Gross Sales Revenue 101,758 77, % 218, , % Adjusted Deductions (13,741) (9,856) 39.4% (25,446) (15,868) 60.4% Adjusted Net Sales Revenue 88,017 67, % 192, , % Net Income 6,316 2, % 31,221 25, % Net Income Margin 7.2% 3.1% 4.0 p.p 16.2% 18.8% (2.6) p.p. Adjusted EBITDA 10,390 5, % 43,536 30, % Adjusted EBITDA Margin 11.8% 7.6% 4.2 p.p 22.6% 22.1% 0.4 p.p Adjusted Net Income 7,438 5, % 32,967 31, % Adjusted Net Income Margin 8.5% 8.6% (0.2) p.p. 17.1% 23.1% (6.0) p.p.

20 SUBSEQUENT CAPITAL INCREASE AND DIVIDENDS

21 SUBSEQUENT NEW BOARD OF DIRECTORS AND COMMITTEES

22 SUBSEQUENT

23 SUBSEQUENT

24 SUBSEQUENT

25 KROTON ABOUT KROTON EDUCACIONAL

26 2Q09 Period ended on Change 06/30/2009 Var. 03/31/2009 Var. Mar-09 / Jun-09 (In thousand reais, except otherwise indicated) Current Assets 215, % 245, % -12.1% Cash and Banks 77, % 105, % -25.8% Trade Accounts Receivable 97, % 106, % -9.0% Inventories 9, % 7, % 29.1% Recoverable Taxes 8, % 7, % 6.5% Prepaid Expenses 1, % % 1.5% Other Accounts Receivable 21, % 17, % 24.2% Noncurrent Assets 9, % 10, % -7.2% Deferred Taxes 7, % 8, % -8.8% Receivables from Related Parties 1, % 1, % 0.0% Other % % 0.5% Permanent Assets 318, % 308, % 3.2% Fixed Assets 148, % 139, % 6.3% Intangible 167, % 166, % 0.6% Deferred 2, % 2, % 0.0% Total Assets 543, % 564, % -3.7% Liabilities and Shareholders' Equity Current 70, % 84, % -16.1% Trade Account Payable 19, % 21, % -9.9% Loans and Financing 5, % 5, % -2.3% Payments and Social Charges 18, % 14, % 29.5% Income and Social Contribution Taxes 6, % 5, % 7.1% Tax and Contribuitons Collectable 2, % 2, % -11.7% Advances from Customers 5, % 17, % -67.5% Others 13, % 17, % -21.0% Noncurrent Liabilities 26, % 27, % -4.9% Trade Account Payable 4, % 4, % -8.4% Loans and Financing 10, % 11, % -5.6% Debts with controlers % % 0.0% Other Liabilities 10, % 11, % -2.7% Minority Interest (116) 0.0% (80) 0.0% 45.0% Shareholder s Equity 446, % 452, % -1.3% Capital 404, % 404, % 0.0% Capital Reserves 3, % 3, % 0.0% Treasury Stocks (21,436) -3.9% (21,413) -3.8% 0.1% Retained Earnings 60, % 66, % -8.7% Total Liabilities and Shareholders' Equity 543, % 564, % -3.7%

27 2Q09 Period ended on Change 2Q09 Var. 2Q08 Var / 2009 (In thousand reais, except otherwise indicated) Gross Revenue 101, % 77, % 31.9% Primary and Secondary Education 29, % 25, % 14.8% Post-secondary Education 72, % 51, % 40.2% Deductions (11,184) -12.3% (6,938) -9.9% 61.2% Primary and Secondary Education (2,149) -2.4% (1,214) -1.7% 76.9% Post-secondary Education (9,035) -10.0% (5,724) -8.2% 57.8% Net Revenue 90, % 70, % 29.0% Primary and Secondary Education 26, % 24, % 11.7% Post-secondary Education 63, % 46, % 38.1% Costs of Products/Services (58,864) -65.0% (48,451) -69.0% 21.5% Cost of Products Sold (3,455) -3.8% (3,889) -5.5% -11.2% Cost of Services (55,409) -61.2% (44,561) -63.5% 24.3% Gross Profit 31, % 21, % 45.7% Operating Income (Expenses) (22,531) -24.9% (18,203) -25.9% 23.8% Selling Expenses (6,998) -7.7% (6,560) -9.3% 6.7% Allowance for Doubtful Accounts (5,051) -5.6% (1,354) -1.9% 273.1% Personnel Expenses (3,434) -3.8% (2,404) -3.4% 42.9% General and Administrative Expenses (6,549) -7.2% (5,518) -7.9% 18.7% Management Remuneration (1,298) -1.4% (949) -1.4% 36.8% Other Operating Income (Expenses) % % 18.5% Goodwill Amortization (156) -0.2% (2,224) -3.2% -93.0% Operating Result before Financial Result 9, % 3, % 157.6% Financial Results (1,574) -1.7% 2, % % Financial Expenses (4,328) -4.8% (4,671) -6.7% -7.3% Financial Revenues 2, % 6, % -60.3% Income (Loss) before Taxes and Social Contribution 7, % 5, % 30.4% Income and Social Contribution Taxes (1,322) -1.5% (3,728) -5.3% 182.0% Current (356) -0.4% (2,246) -3.2% 530.8% Deferred (966) -1.1% (1,482) -2.1% -34.8% Minority Interests % 5 0.0% 560.0% Net Income (Loss) for the Period 6, % 2, % 199.5%

28 2Q09 Period ended on Change 6M09 Var. 6M08 Var / 2009 (In thousand reais, except otherwise indicated) Gross Revenue 218, % 153, % 42.2% Primary and Secondary Education 75, % 65, % 14.7% Post-secondary Education 143, % 87, % 62.8% Other 0 0.0% % % Deductions (20,339) -10.3% (12,372) -8.8% 64.4% Primary and Secondary Education (3,544) -1.8% (3,703) -2.6% -4.3% Post-secondary Education (16,795) -8.5% (8,669) -6.1% 93.7% Net Revenue 198, % 141, % 40.2% Primary and Secondary Education 71, % 61, % 15.9% Post-secondary Education 126, % 79, % 59.4% Other 0 0.0% % % Costs of Products/Services (113,277) -57.2% (79,488) -56.3% 42.5% Cost of Products Sold (10,651) -5.4% (8,401) -5.9% 26.8% Cost of Services (102,626) -51.8% (71,087) -50.3% 44.4% Gross Profit 84, % 61, % 37.3% Operating Income (Expenses) (43,656) -22.0% (34,644) -24.5% 26.0% Selling Expenses (15,648) -7.9% (12,096) -8.6% 29.4% Allowance for Doubtful Accounts (6,293) -3.2% (2,377) -1.7% 164.7% Personnel Expenses (7,201) -3.6% (6,021) -4.3% 19.6% General and Administrative Expenses (13,783) -7.0% (10,890) -7.7% 26.6% Management Remuneration (1,859) -0.9% (1,305) -0.9% 42.5% Other Operating Income (Expenses) 1, % 1, % -1.4% Goodwill Amortization (311) -0.2% (3,415) -2.4% -90.9% Operating Result before Financial Result 41, % 27, % 51.8% Financial Results (2,197) -1.1% 9, % % Financial Expenses (8,628) -4.4% (6,227) -4.4% 38.6% Financial Revenues 6, % 15, % -58.3% Income (Loss) before Taxes and Social Contribution 38, % 36, % 7.2% Income and Social Contribution Taxes (7,754) -3.9% (10,394) -7.4% 34.0% Current (6,319) -3.2% (7,859) -5.6% 24.4% Deferred (1,435) -0.7% (2,535) -1.8% -43.4% Minority Interests % 5 0.0% % Net Income (Loss) for the Period 31, % 25, % 20.6%

29 2Q09 Consolidated 2Q09 1Q09 Cash Flow from Operating Activities Net Income(Loss) for the Period 6,316 24,905 Adjustments to Reconcile Net Income to Cash Provided by Operating Activities Depreciation and Amortization 3,735 3,736 Income and Social Contribution Taxes - Deferred Income and Social Contribution Taxes - On the Period 356 5,963 Minority Interests (36) (40) Changes in assets and liabilities (Increase) Decrease in Accounts Receivable 9,583 (45,300) (Increase) Decrease in Inventories (2,254) 2,475 (Increase) Decrease in other Accounts Receivable (4,897) 2,626 Increase (Decrease) in Trade Accounts Payable (2,507) 3,545 Decrease in other Accounts Payable (12,014) (9,053) Increase (Decrease) in Advances from Customers (12,088) 10,522 Net Cash Provided by (Used in) Operating Activities (12,840) (152) Cash Flow from Investing Activities Acquisition of fixed assets (11,839) (8,463) Additions to intangible (3,965) (9,374) Goodwill Adjustment 2,020 Result on sales of permanent assets Net Cash used in Investing Activities (13,506) (17,837) Cash Flow from Financing Activities Treasury Stocks (23) (345) Payment of Loans and Financing (1,142) (1,319) Payment Interests over Loans Net Cash Provided by (Used in) Financing Activities (775) (1,214) Decrease in Cash (27,121) (19,203) Cash - at Beginning of Period 105, ,213 Cash - at End of Period 77, ,010 Decrease in Cash (27,121) (19,203)