JSL S.A. Mogi das Cruzes, April 27, 2017 - JSL (BM&FBOVESPA: JSLG3 and Level 1 ADR: JSLGY), the company with the broadest portfolio of logistics services in Brazil and the leader in terms of net revenue, announces its 1Q17 results, which include JSL Logística, and, separately, the results of Movida, JSL Concessionárias and JSL Leasing which together comprise the result of JSL Consolidated. The financial and operating information is presented in Brazilian reais as per Brazilian GAAP, and the comparisons refer to the reported and audited data in 1Q17, 4Q16 and 1Q16, except where otherwise indicated.
Contents
Management Summary 02
JSL S.A.JSL Logística 03
Movida 07
JSL Concessionárias 08
1Q17 Earnings Release
JSL Leasing 08
Capital Structure 09
Cash Flow and ROIC 11
Free Cash Flow 12
Operating and Financial Highlights
Capital Market
Glossary Exhibits
13
13
15
Consolidated Net Revenue of R$1.8 billion in 1Q17 (+17.6% YoY);
Net Revenue from Services of R$1.3 billion in 1Q17 (+5.6% YoY);
Conference Call and Webcast
April 28, 2017
11:00 a.m. (Brasília) - with simultaneous interpretation into English
Portuguese: +55 11 3127-4971 or
+55 11 3728-5971
English: +1 (516) 300-1066
Access Code: JSL
Investor Relations
Phone: +55 11 3154-4043
+55 11 3154-4010
E-mail: ri@jsl.com.br
Net Revenue from the Sale of Assets¹ of R$457.7 million in 1Q17 (+75.9% YoY), underlining the Company's ability to sell its assets;
EBITDA of R$307.1 million (+5.2% YoY) and EBITDA Margin of 23.7% (-0.1 p.p. YoY) in 1Q17; Net Investments of R$154.5 million in 1Q17 (-38.6% YoY); the decline was due to higher asset turnover after the Company's robust growth cycle in recent years;
Free Cash Flow to Firm of R$141 million LTM;
Movida's IPO in February 2017 raised a total R$600 million and strengthened our capital structure.
JSL - Consolidated | ||||
Financial Statements (R$ million) | 1Q16 | 1Q17 | Chg. 1Q17x1Q16 | LTM |
Consolidated Gross Revenues ² | 1,691.8 | 1,966.9 | 16.3% | 7,659.0 |
Services ¹ | 1,227.1 | 1,305.5 | 6.4% | 5,312.8 |
Sale of Assets ¹ | 260.8 | 461.1 | 76.8% | 1,549.7 |
Concessionárias | 228.3 | 217.9 | -4.6% | 893.0 |
Leasing | 4.6 | 10.7 | 132.6% | 34.5 |
Consolidated Net Revenue ² | 1,494.9 | 1,757.8 | 17.6% | 6,786.0 |
Net Revenue from Services ² | 1,228.9 | 1,297.2 | 5.6% | 5,233.4 |
EBITDA ² | 291.9 | 307.1 | 5.2% | 1,076.1 |
Margin * | 23.8% | 23.7% | -0.1 p.p. | 20.6% |
EBITDA-A ² | 545.9 | 745.8 | 36.6% | 2,549.9 |
Margin | 36.5% | 42.4% | +5.9 p.p. | 37.6% |
Net Result ² | 11.2 | (7.0) | -162.5% | (201.3) |
Margin | 0.7% | -0.4% | -1.1 p.p. | -3.0% |
¹ JSL Logística + Movida, excluding intercompany operations.
³ Considers the consolidation of the financial results of JSL Logística, JSL Concessionárias, Movida and JSL Leasing, eliminating intercompany operations.
* Calculated on total net revenue from services.
DISCLAIMER: As from January 1, 2017, the Company will present PIS and COFINS credits on the acquisition of inputs and depreciation charges as credits reducing the costs of products and services sold, in order to better reflect the nature of the respective credits and expenses. The amounts corresponding to these credits for the past periods were reclassified for comparability purposes
Management Summary - JSL Consolidated
We began 2017 with the necessary structure to initiate a cycle of profitability of our operations, after the previous years which were marked by growth. The profitability should be mainly supported by the process of consolidation of the used-vehicle stores and new RAC channels, together with a deceleration in the group's net investments.
JSL Logística continues relying on the resilience of its operations and the maintenance of its leadership position in Brazil's logistics market, which is characterized by constant development and various business opportunities. Meanwhile, Movida already holds a prominent position in the domestic market, given that investments over recent years should enable the Company to benefit from gains in scale and its increased capacity to provide unique service. In addition, the successful IPO at the beginning of 2017, which raised R$600 million, reinforced the group's capital structure and will support a new development cycle for the Company.
In 1Q17, Consolidated Gross Revenue totaled R$2.0 billion, up 16.3% YoY, which proves once again the value of our diversification - of services, clients and economic sectors - confirming the Company's resilience, as well as our ability to execute. In 1Q17, Consolidated Gross Revenue comprised R$1.3 billion from Services, R$461.1 million from the Sale of Assets, R$217.9 million from JSL Concessionárias, and R$10.7 million from JSL Leasing.
EBITDA totaled R$307.1 million, with an EBITDA Margin of 23.7% in 1Q17, primarily consisting of:
- JSL Logística: EBITDA of R$216.1 million (-2.6% YoY), with an EBITDA Margin of 24.6% (-0.8 p.p. YoY); the reduction was mainly due to the idleness of assets within our clients that are not yet operating at full capacity given the economic deceleration in Brazil occurred in the last years.
-
Movida: EBITDA of R$85.1 million (+15.4% YoY), with an EBITDA Margin of 34.7% (-3.7 p.p. YoY); the YoY EBITDA margin reduction is related to the increase in administrative expenses, mainly as a result of administrative team structuring and an increase in provisions for losses.
Net Financial Expenses totaled R$180.7 million in 1Q17, versus R$147.1 million in 1Q16 (+22.8% YoY and -21.5% QoQ). The YoY increase was mainly due to investments in Movida's growth (in terms of both fleet and the number of RAC and used-vehicle stores) and the change in the debt mix (from 65.2% pegged to the CDI in March 2016 to 67.3% in March 2017).
Net Loss came to R$7.0 million in 1Q17, impacted by macroeconomic factors - such as the economic deceleration and the consequent reduction in the volume of production for logistic clients.Despite the negative net result, we point out cash improvements in the period: Free Cash Flow to Firm increased from R$89 million in 1Q16 (LTM) to R$141 million in 1Q17 (LTM), primarily driven by increased sales of assets in both JSL Logística and Movida.
JSL Logística
1 Financial performance Gross Revenue
In 1Q17, total gross revenue amounted to R$1.1 billion (+6.2% YoY), of which R$1.0 billion (+1.1% YoY) from services and R$101.9 million (+116.3% YoY) from the sale of assets.
Compared with 4Q16, total gross revenue fell 7.4%, in line with the reduction in gross revenue from services (-6.2% QoQ) and the sale of assets (-17.4% QoQ), mainly due to the discontinuity of some contracts in the 4Q16.
JSL - Logística | ||||||
Gross Revenue (R$ million) | 1Q16 | 4Q16 | 1Q17 | Chg. 1Q17x1Q16 | Chg. 1Q17x4Q16 | LTM |
Gross Revenue 1,075.7 1,232.6 1,142.0 6.2% -7.4% 4,785.1 | ||||||
Revenue from Services 1,028.6 1,109.3 | 1,040.1 | 1.1% -6.2% | 4,418.7 | |||
Revenue from Sale of Assets 47.1 123.3 | 101.9 | 116.3% -17.4% | 366.4 | |||
Dedicated Services 53.5%
Dedicated Services 56.6%
Others 1.5%
General Cargo 6.7%
2016
Others 1.4%
General Cargo 7.9%
1Q17*
Passenger Transportation 12.9%
Management and Outsourcing 25.4%
Passenger Transportation 10.6%
Management and Outsourcing 23.4%
Breakdown of Gross Revenue from Services by Economic SectorConsumer Goods 4.6%
Services
2.7%
Capital Goods
1.2%
Pulp and Paper
Consumer Goods 4.5%
Services 2.7%
Capital Goods 1.3%
Pulp and Paper
Chemical
6.9%
Passenger Transportation 8.0%
Agribusiness 9.3%
Others
2016
13.1%
Automotive 11.7%
Public 12.1%
Chemical 7.0%
Passenger Transportation 7.3%
Agribusiness 9.1%
Others
1Q17*
13.8%
Automotive 12.4%
Public
11.7%
9.3%
Food Industry 10.2%
Steel and
Mining 11.0%
9.9%
Food Industry 9.9%
Steel and
Mining
10.4%
(*) Last 12 months
Net RevenueIn 1Q17, JSL Logística recorded a 6.2% YoY increase in total net revenue, due to the maintenance in revenue from services (+0.5% YoY) and mainly the sale of assets (+112.9% YoY). Despite Brazil's economic recession, the Company has outperformed GDP in the last few years, supported by the acquisition of new clients and new services to existing clients, especially in the pulp and paper and auto sectors.
Compared with 4Q16, net revenue fell 7.4%, in line with the reduction in net revenue from services (-6.6% QoQ) and the sale of assets (-13.6% QoQ), due to the discontinuity of some contracts in the 4Q16.
JSL - Logística | ||||||
Net Revenue (R$ million) | 1Q16 | 4Q16 | 1Q17 | Chg. 1Q17x1Q16 | Chg. 1Q17x4Q16 | LTM |
Net Revenue 920.1 1,055.0 976.9 6.2% -7.4% 4,081.3 | ||||||
Net Revenue from Services 873.7 940.4 | 877.9 | 0.5% -6.6% | 3,729.8 | |||
Net Revenue from Sale of Assets 46.5 114.6 | 99.0 | 112.9% -13.6% | 351.4 | |||
RSC (R$ million) | 1Q16 | 1Q17 | Chg. 1Q16x1Q17 |
Gross Revenue from Services 827.3 | 848.3 | 2.5% | |
Dedicated Services 451.8 | 470.0 | 4.0% | |
Management and Outsourcing (Vehic./Mach./Equip.)* 187.1 | 178.6 | -4.5% | |
Passenger Transportation 111.1 | 110.0 | -1.0% | |
General Cargo transportation 62.0 | 74.8 | 20.6% | |
Others 15.2 | 14.9 | -2.1% | |
* With adition of services / public / heavy
CostsIn 1Q17, the cost of services totaled R$726.5 million (+7.0% YoY). The main variation was observed in independent contractors and third parties (+23.8% YoY), impacted by the migration of some operations from a capital-intensive model to one with higher use of contractors and third parties after the acquisition of Quick Logística in 1Q16.
Compared with 4Q16, the cost of services fell 8.1%, led by the 11.3% reduction in personnel expenses, due to the discontinuity of some contracts in the 4Q16.
JSL - Logística | ||||||
Costs (R$ million) | 1Q16 | 4Q16 | 1Q17 | Chg. 1Q17x1Q16 | Chg. 1Q17x4Q16 | LTM |
Cost of Services | (678.8) | (790.8) | (726.5) | 7.0% | -8.1% | (3,087.3) |
Personnel | (239.9) | (260.7) | (231.2) | -3.6% -11.3% | (1,017.8) | |
Independent contractors / third parties | (156.9) | (204.3) | (194.3) | 23.8% -4.9% | (758.8) | |
Fuel and lubricants | (51.0) | (56.5) | (50.4) | -1.2% -10.8% | (243.3) | |
Parts / tires / maintenance | (59.3) | (73.7) | (75.1) | 26.6% 1.9% | (300.2) | |
Depreciation | (99.3) | (114.9) | (105.0) | 5.7% -8.6% | (434.6) | |
Others | (72.4) | (80.7) | (70.5) | -2.6% -12.6% | (332.5) | |
Costs of Sales of Assets | (47.2) | (108.8) | (98.0) | 107.6% | -9.9% | (344.5) |
Sale of Assets used to provide services | (47.2) | (108.8) | (98.0) | 107.6% -9.9% | (344.5) | |
Sale of Assets with Management | - | - | - | - | - | - |
Total | (726.0) | (899.6) | (824.4) | 13.6% | -8.4% | (3,431.8) |
Total (as % of Total Net Revenue) | 78.9% | 85.3% | 84.4% | +5.5 p.p. | -0.9 p.p. | 84.1% |
JSL SA published this content on 27 April 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 28 April 2017 17:09:18 UTC.
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