COMPANHIA DE SANEAMENTO DE MINAS GERAIS Belo Horizonte, May 5, 2016 - COPASA MG - Companhia de Saneamento de Minas Gerais (BM&FBOVESPA: CSMG3) hereby announces its results for the first quarter of 2016 (1Q16). The following financial and operating information, except where otherwise indicated, is presented in Brazilian Reais (R$) and comparisons refer to the first quarter of 2015 (1Q15) and the first quarter of 2014 (1Q14). The financial statements were prepared in accordance with International Financial Reporting Standards (IFRS) and refer to the Parent Company.
Tables containing results are available for download at www.copasa.com.br/ir.
Financial Highlights (R$ thousands)First quarters | 1Q16 | 1Q16 | 1Q16 X 1Q15 | 1Q14 | 1Q15 X 1Q14 |
Adjusted EBITDA | 321,549 | 230,980 | 39.2% | 305,547 | -24.4% |
Adjusted EBITDA margin | 36.7% | 30.1% | - | 37.6% | - |
Net Revenue from Water and Sewage | 830,811 | 735,127 | 13.0% | 789,259 | -6.9% |
Costs and Expenses¹ | 659,405 | 634,321 | 4.0% | 583,181 | 8.8% |
Net Financial Result | (66,767) | (81,314) | -17.9% | (44,165) | 84.1% |
Other Operating Income (net) | 5,977 | (1,017) | - | (6,262) | -83.8% |
Net Income | 89,805 | 16,450 | - | 116,613 | -85.9% |
Net Debt | 3,216,848 | 3,262,440 | -1.4% | 3,010,561 | 8.4% |
Conference Call with Simultaneous Translation Date: May 9, 2016
3:00 p.m. (Brasília time)
2:00 p.m. (New York time)
Phones:
Brazil: +55 (11) 2188-0155
USA: +1 (646) 843-6054
Code: COPASA
Participants:
Sinara Inácio Meireles Chenna
Chief Executive Officer Edson Machado Monteiro Chief Financial and Investor Relations Officer
IR Contacts:
Phone: +55 (31) 3250-2015
ir@copasa.com.br www.copasa.com.br/ir
(1) Cost of Services Rendered + Selling Expenses + Administrative Expenses.
Operational Highlights (consolidated figures)WATER
Connections: 4.2 million
Units: 5.0 million
Billed Volume: 162.8 million m³
Distribution Network: 50,900 km
SEWAGE
Connections: 2.6 million
Units: 3.3 million
Billed Volume: 108.3 million m³
Collection Network: 24,500 km
Material FactsTariff revision
As disclosed in Notice to the Market from October 16, 2015, the Company filed at the Minas Gerais State Water and Sewage Services Regulatory Agency (ARSAE-MG) a tariff revision request for the public services of water supply and sewage provided by COPASA MG and by its subsidiary COPANOR.
As informed in Material Fact from April 12, 2016, the Agency published on that same date the Resolution 82/2016, in which it authorized the first stage of the Company's tariff revision, which included inflation restatement, market adjustments, an analysis of the efficiency of operating costs, and alteration of the tariff structure. This latter alteration consisted in the replacement of the minimum consumption billing by the billing with two components: fixed tariff and variable tariff, which takes as its basis the actual volume measured.
The average tariff impact to be perceived by the users is of 13.9%, applied to consumptions registered from May 13, 2016.
The aforementioned Resolution, as well as Technical Statements CRFEF 30, 31 and 32, which subsidized the revision, are available at ARSAE-MG's website (www.arsae.mg.gov.br) and COPASA MG's Investor Relations website (www.copasa.com.br/ri), Portuguese only.
The second stage is scheduled for May 2017 and will include a realignment of tariffs based on compensation, amortization and recovery of the Company's investments, with the definition of its regulatory asset base (RAB).
The tariff revision for subsidiary COPANOR is scheduled for July 2016, covering a realignment of tariffs based on the estimation of costs necessary for the proper provision of services, variations on inflation, adjustment related to market changes (hydric crisis, new consumption patterns), as well as adjustments on the Company's tariff structure.
Shareholders' Remuneration - Financial Year 2016
As per the Company's Dividend Policy, the Board of Directors has decided, for the 2016 financial year, for the distribution of dividends as Interest on Equity (IOE) at 25% of net income, minimum mandatory percentage, with quarterly distributions, and payment date to be set by the Annual Shareholders' Meeting that will resolve on that year's Financial Statements.
The Board of Directors' Meeting held on May 5, 2016 has decided for the declaration of R$ 24.7 million as IOE, referring to the 1st quarter of 2016, corresponding to R$0.20715 per share. The credit date is May 11, 2016, and the payment date will be set as per the Dividend Policy.
Operational InformationConcessions and operations
On March 31, 2016, the Company owned 634 water concessions and 294 sewage concessions, as shown in the table below:
Concessions and Operations | Total | Mar/16 Parent Co. | Copanor3 | Total | Mar/15 Parent Co. | Copanor |
Water | 634 | 585 | 49 | 635 | 586 | 49 |
Concessions¹ | ||||||
Operations2 | 623 | 576 | 47 | 620 | 575 | 45 |
Sewage | ||||||
Concessions¹ | 294 | 239 | 55 | 288 | 239 | 49 |
Operations2 | 240 | 204 | 36 | 234 | 205 | 29 |
- All the municipalities where the company holds a concession: towns, villages or others
- All the municipalities where the company operates a concession: towns, villages or others. 3 - Takes into account only municipalities whose concession is owned by Copanor.
The table below shows the main operating figures:
Breakdown - COPASA (Parent Co.) | 1Q16 | 1Q15 | 1Q16 X 1Q15 | 1Q14 | 1Q15 X 1Q14 |
Water | 4,054.4 | 3,985.3 | 1.7% | 3,870.5 | 3.0% |
Connections (1,000 units) | |||||
Units (1,000 units) | 4,913.7 | 4,826.3 | 1.8% | 4,691.9 | 2.9% |
Population served (1,000 inhabitants) | 11,264.8 | 11,245.0 | 0.2% | 11,147.0 | 0.9% |
Billed Volume (1,000 m³/quarter) | 160,492.0 | 163,895.7 | -2.1% | 173,821.4 | -5.7% |
Produced Volume (1,000 m³/quarter) | 226,448.7 | 226,836.4 | -0.2% | 246,045.0 | -7.8% |
Network Extension (km) | 48,820.7 | 47,314.5 | 3.2% | 45,607.0 | 3.7% |
Water Metering Index (%) | 99.7 | 99.9 | -0.2% | 99.9 | - |
Water not Converted into Revenue - ANCR¹ (l/conn./day) | 216.9 | 224.5 | -3.4% | 237.7 | -5.6% |
Sewage | |||||
Connections (1,000 units) | 2,572.2 | 2,516.7 | 2.2% | 2,397.9 | 5.0% |
Units (1,000 units) | 3,270.0 | 3,203.0 | 2.1% | 3,061.5 | 4.6% |
Population served (1,000 inhabitants) | 7,612.1 | 7,559.0 | 0.7% | 7,348.0 | 2.9% |
Billed Volume (1,000 m³/quarter) | 107,278.6 | 107,190.4 | 0.1% | 113,649.3 | -5.7% |
Treated Volume (1,000 m³/quarter) | 65,956.7 | 64,000.7 | 3.1% | 62,932.5 | 1.7% |
Network Extension (km) | 23,101.5 | 22,318.5 | 3.5% | 21,290.7 | 4.8% |
(1) Average in the last 12 months
Breakdown - COPANOR | 1Q16 | 1Q15 | 1Q16 X 1Q15 | 1Q14 | 1Q15 X 1Q14 |
Water | 95.7 | 90.0 | 6.4% | 84.3 | 6.8% |
Connections (1,000 units) | |||||
Units (1,000 units) | 99.1 | 91.9 | 7.8% | 86.2 | 6.6% |
Population served (1,000 inhabitants) | 223.8 | 213.3 | 4.9% | 158.3 | 34.7% |
Billed Volume (1,000 m³/quarter) | 2,355.6 | 2,298.4 | 2.5% | 2,120.2 | 8.4% |
Produced Volume (1,000 m³/quarter) | 2,981.2 | 2,846.0 | 4.7% | 2,756.0 | 3.3% |
Network Extension (km) | 2,107.0 | 1,490.0 | 41.4% | 1,446.0 | 3.0% |
Sewage | |||||
Connections (1,000 units) | 42.5 | 36.6 | 16.1% | 35.8 | 2.3% |
Units (1,000 units) | 44.4 | 37.6 | 18.0% | 36.8 | 2.2% |
Population served (1,000 inhabitants) | 101.4 | 88.5 | 14.6% | 71.6 | 23.6% |
Billed Volume (1,000 m³/quarter) | 1,023.4 | 932.4 | 9.8% | 914.4 | 2.0% |
Network Extension (km) | 1,410.0 | 1,208.0 | 16.7% | 1,168.0 | 3.4% |
Breakdown - Consolidated (Parent Co. + COPANOR) | 1Q16 | 1Q15 | 1Q16 X 1Q15 | 1Q14 | 1Q15 X 1Q14 |
Water | 4,150.0 | 4,075.2 | 1.8% | 3,954.8 | 3.0% |
Connections (1,000 units) | |||||
Units (1,000 units) | 5,012.8 | 4,918.1 | 1.9% | 4,778.1 | 2.9% |
Population served (1,000 inhabitants) | 11,488.6 | 11,458.3 | 0.3% | 11,305.3 | 1.4% |
Billed Volume (1,000 m³/quarter) | 162,847.5 | 166,194.1 | -2.0% | 175,941.6 | -5.5% |
Produced Volume (1,000 m³/quarter) | 229,429.9 | 229,682.4 | -0.1% | 248,801.0 | -7.7% |
Network Extension (km) | 50,927.7 | 48,804.5 | 4.4% | 47,053.0 | 3.7% |
Sewage | |||||
Connections (1,000 units) | 2,614.7 | 2,553.4 | 2.4% | 2,433.7 | 4.9% |
Units (1,000 units) | 3,314.4 | 3,240.6 | 2.3% | 3,098.3 | 4.6% |
Population served (1,000 inhabitants) | 7,713.5 | 7,647.5 | 0.9% | 7,419.6 | 3.1% |
Billed Volume (1,000 m³/quarter) | 108,302.1 | 108,122.8 | 0.2% | 114,563.4 | -5.6% |
Network Extension (km) | 24,511.5 | 23,526.5 | 4.2% | 22,458.7 | 4.8% |
Employees and Employees/Connection
The number of employees of the Parent Company, which stood at 12,549 in March 2015, dropped to 11,261 in March 2016, a reduction of 10.3%. This decrease reflects the effects of the termination programs held in order to adequate the cost curve and to seek operational efficiency, which resulted in the termination of 1,289 employees until March 31, 2016. Expenses related to these programs were fully provisioned in 2015.
The table below shows the number of employees and the employees/connections ratio in the comparative periods:
Breakdown | 1Q16 | 1Q15 | 1Q16 X 1Q15 | 1Q14 | 1Q15 X 1Q14 |
COPASA (Parent Co.) | 11,261 | 12,549 | -10.3% | 11,857 | 5.8% |
Number of Employees | |||||
Employees/Connections¹ | 1.70 | 1.92 | -11.3% | 1.88 | 1.9% |
COPANOR | |||||
Number of Employees | 365 | 355 | 2.8% | 316 | 12.3% |
Employees/Connections¹ | 2.64 | 2.80 | -5.8% | 2.63 | 6.5% |
Consolidated (Parent Co. + COPANOR) | |||||
Number of Employees | 11,626 | 12,904 | -9.9% | 12,173 | 6.0% |
Employees/Connections¹ | 1.72 | 1.95 | -11.7% | 1.91 | 2.2% |
(1) Number of employees / 1,000 connections of water and sewage
COPASA MG - Companhia Mineira de Saneamento de Minas Gerais published this content on 05 May 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 06 May 2016 00:06:04 UTC.
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