Results presentation 4 q13
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Transcript of Results presentation 4 q13
February 27, 2014
4Q13
Results
Sales Volume amounted to 29.9 thousand tons, an increase of 20.2% compared with the same
period in 2012 driven by sales from the Company’s 13th production line which began operations
in 1Q13. In 4Q13, there was a small quarter-on-quarter decrease of 4.5% although if nonwoven
volume is taken in isolation, there would have been a slight increase of 1.3%;
The Company reported Net Revenue of R$ 217.2 million, a 42.2% increase on 4Q12, largely
reflecting the increase in sales volume;
Adjusted EBITDA reached 34.7 million, 2.5% greater than 4Q12;
Net Debt reported an increase of R$ 50.4 million or 11.2% in relation to 4Q12, the principal
factor here being the currency translation effect on US Dollar denominated financing;
Interim dividends of R$ 17.9 million were paid out, totaling 100% of the first half 2013 adjusted
dividend calculation base.
HIGHLIGHTS 4Q13
4Q12 3Q13 4Q13
22,8 29,2 29,6
2,1 2,2 0,4
25,0
31,4 30,0
Nonwovens Others
Sales Volume / Quarter
SALES VOLUME (in thousands of tons)
Sales of nonwovens posted 29.5% growth compared with 4Q12, reaching 29.6 thousand tons in
4Q13. The variation was due to the full capacity of the 2nd production line in the United States,
which came into operation in 2013.
2012 2013
90,1 111,1
8,6 7,8
98,7 118,9
Others Nonwovens
Sales Volume /Accumulated
R$6,17
R$6,58
Unitary Net Revenue
4Q12 3Q13 4Q13
152,8
211,1 217,2
Net Revenue
Net Revenue / Quarter
4
NET REVENUE (in millions of Reais)
This growth was mainly due to increased sales volume.
4
Net revenue reached R$217.2 million in 4Q13, up 42.2% compared to 4Q12. Compared to the
3Q13, there was a growth of 2.9%;
R$6,12
R$6,72 R$7,24
Unitary Net Revenue
2012 2013
608,6
782,0
Net Revenue
Net Revenue Accumulated
4Q12 3Q13 4Q13
105,4
156,9 164,7
COGS
COGS / Quarter
R$4,22
R$4,99
R$5,49
Unitary COGS (R$)
2012 2013
423,1
578,6
COGS
COGS Accumulated
The cost of goods sold (COGS) totaled R$ 164.7 million in 4Q13, 56.3% higher against the
R$ 105.4 million recorded in 4Q12 and an increase of 5.0% compared with the R$ 156.9 million in
3Q13.
COGS (Cost of Goods Sold)
(in millions of Reais)
55
This performance is largely the result of higher sales volume and increased raw material costs.
R$4,29
R$4,87
Unitary COGS (R$)
2012 2013
127,0
132,6
EBITDA
EBITDA Accumulated
20,9%17,0%
Ebitda Margin (%)
Adjusted EBITDA in 4Q13 reached R$ 34.7 million, an improvement of 2.5% when compared with
the R$33.8 million reported in 4Q12. The adjusted EBITDA corresponds to 16.0%, 3.0p.p. lower
compared to 3T13.
EBITDA (in millions of Reais)
and EBITDA MARGIN (%)
6
4Q12 3Q13 4Q13
33,8
40,1
34,7
EBITDA
EBITDA / Quarter
22,1%19,0%
16,0%
Ebitda Margin (%)
7,4%
3,4%
Net Margin (%)
2012 2013
45,1
26,9
Net income
Net Income Accumulated
4Q12 3Q13 4Q13
11,3
10,0
3,7
Net income
Net Income / Quarter
7,4%
4,7%
1,7%
Net Margin (%)
7
NET INCOME (in millions of Reais)
and NET MARGIN(%)
7
Net income for the quarter amounted to R$ 3.7 million.
Net Debt increased 11.2% when compared with 4Q12 due to the exchange variation that led to
the increase in gross debt of R$ 55.2 million, as well as a reduction of cash and financial liquidity
instruments (hedge) of R$ 4.8 million. Regarding 3Q13 Net Debt increased by 1.6% ;
NET DEBT(in millions of Reais)
The foreign currency named debt was mainly borrowed in the USA with a natural hedge in the
form of Providência’s revenue flows and assets in that country.
28%
72%
Local currency Foreign currency
Total Debt %
4Q12 3Q13 4Q13
451,6
494,3 502,0
Net Debt
Net Debt
Consolidated Net Debt
DEBT / CASH
(in thousands of Reais)
9
4Q13 3Q13 4Q12Ch. 4Q13 /
4Q12
Short term 83.694 51.436 112.361 -25,5%
Long Term 507.236 523.609 423.346 19,8%
Total 590.930 575.045 535.707 10,3%
Cas h and l i quid hedge ins truments 88.924 80.743 84.145 5,7%
Net Debt 502.006 494.302 451.562 11,2%
Shareholders ' Equi ty 665.550 662.099 689.977 -3,5%
Net Debt / Adjus ted EBITDA 3,98 3,86 3,58 11,2%
1st Half 2011 1st Half 2012 1st Half 2013
14,1
19,217,9
Dividends Paid (R$ MM)
Dividends Payable
0.18
0.24 0.22
Dividend/Share
In November 2013, interim dividends of R$ 17.9 million were paid, totaling 100% of the adjusted
dividend calculation base for the first half of 2013.
DIVIDENDS (in millions of Reais)
10
This calculation base corresponds to:
13,3 MM
0,7 MM
5,1 MM
0,2 MM
17,9 MM
1st Half 2013 Net income
(-) Legal Reserves legal (5%)
(+) Realization of deemed cost:
(+) Reversal of stock options plan:
Dividends payable
MATERIAL FACT
11
Published on January 27, 2014;
The Block of Control (“Selling Shareholders”) entered into a Stock Purchase Agreement with PGI
Polímeros do Brasil S.A. and Polymer Group, Inc.
The purchase price per share that shall be paid to the Selling Shareholders subject to the some
adjustments is R$ 9.75, that will be paid as follows:
R$ 7.55 at the closing of the transaction;
R$ 0.32 of escrow account, will be deposited at closing of the Transaction in an escrow account in
Brazil and shall be used to guarantee the implementation of certain indemnification obligations
undertook by the Selling Shareholders;
R$ 1.87 of holdback, will be paid to the Selling Shareholders only in certain situations
contemplated by the SPA.
The closing of the Transaction will be subject to the verification and fulfillment of certain conditions
precedent usual in similar transactions, including the prior approval by the antitrust authorities
PGI Brazil undertook in the SPA the obligation to launch, after the closing of the Transaction, a tender
offer for the purchase of shares as a result of the sale of control.
CEO/CFO: Hermínio V. S. de Freitas
RI : Gabriela Las Casas
Danielle Cabrini
Tel: +55 (41) 3381-8673
Fax: +55 (41) 3381-7656
São José dos Pinhais – PR
www.providencia.com.br/ri
www.twitter.com/providencia_ri
12
The words “believe”, “anticipate”, “expect”, “estimate”, “will”, “plan”, “may”, “intend”, “foresee”, “project” and other similar expressions indicate forward-looking
statements. These forward-looking statements involve uncertainties, risks and assumptions, since they include information related to our potential or assumed future
operating results, business strategy, financing plans, competitive position in the market, industry environment, potential growth opportunities and the effects of future
regulations and competition. In addition, forward-looking statements refer only to the date on which they were made and should not be taken as a guarantee of future
performance. Providência is under no obligation to update this presentation with new information and/or future events .