Mogi das Cruzes, March 23, 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 4Q16 results, which include JSL Logística and, separately, the results of Movida, JSL Concessionárias and Leasing, which together comprise the result of JSL Consolidada. 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 4Q15, 3Q16 and 2015, except where otherwise indicated.
Contents
Management's Comments JSL Logística
Movida
JSL Concessionárias Leasing
02
JSL S.A.03
07
08
4Q16 and Full 2016 Earnings Release
08
Capital Structure 09
Operating and Financial Highlights
Cash Flow and ROIC
Free Cash Flow Subsequent Events Capital Markets Glossary
Exhibits
11
12
13 Consolidated Net Revenue of R$1.7 billion in 4Q16 (+11.9% YoY), totaling a record of R$6.7 billion
15
15 in 2016 (+12.5% YoY), despite the Brazilian economic recession;
17
Net Revenue from Services of R$1.4 billion in 4Q16 (+5.4% YoY), totaling R$5.4 billion in 2016
Conference Call and Webcast
March 24th 2017
11:00 a.m. (Brasília) - with simultaneous interpretation in English
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Access code: JSL
(+5.8% YoY);
Net Revenue from the Sale of Assets¹ of R$376.7 million in 4Q16, (+44.1% YoY), reaching R$1.3 billion in 2016 (+50.6% YoY), demonstrating the Company's capacity of selling assets;
EBITDA of R$188.5 million and EBITDA Margin of 13.8% in 4Q16, totaling R$1.1 billion (-2.9% YoY) and EBITDA Margin of 19.7% in 2016;
Net of Non-recurring Effects, EBITDA and EBITDA Margin totaled respectively R$270.1 million and
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%, in 4Q16, reaching R$1.14 billion and 21.3% in 2016;
Net Investments of R$349.3 million in 4Q16, totaling R$1.1 billion in 2016;
Free Cash Flow to Firm of R$269million in 2016; An evolution of R $337 million compared to 2015
Subsequent Events
Movida's IPO in February 2017, raising R$600 million and strengthening our capital structure;
R$ 1 billion debt extension in March 2017 as part of liability management.
JSL - Consolidated
Financial Statements
(R$ million)
4Q15
4Q16
Chg.
4Q16x4Q15
2015
2016
Chg.
2016x2015
Consolidated Gross Revenues ²
1,699.4
1,916.8
12.8%
6,561.5
7,383.8
12.5%
Services ¹
1,216.7
1,340.3
10.2%
4,699.0
5,234.4
11.4%
Sale of Assets ¹
261.7
386.3
47.6%
887.5
1,349.5
52.1%
Concessionárias
241.2
226.9
-5.9%
1,083.8
903.3
-16.7%
Leasing
2.1
9.4
-
5.5
28.5
-
Consolidated Net Revenue ²
1,564.7
1,751.1
11.9%
5,989.9
6,739.4
12.5%
Net Revenue from Services ²
1,298.4
1,368.8
5.4%
5,086.4
5,381.3
5.8%
EBITDA ²
285.0
188.5
-33.9%
1,092.1
1,060.9
-2.9%
Margin * 21.9%
13.8%
-8.1 p.p. 21.5%
19.7%
-1.8 p.p.
EBITDA without extraordinar effects
285.7
270.1
-5.5%
1,101.4
1,143.6
3.8%
Margin * 22.0%
19.7%
-2.3 p.p. 21.7%
21.3%
-0.4 p.p.
EBITDA-A ²
540.0
550.9
2.0%
1,966.5
2,350.0
19.5%
Margin 34.5%
31.5%
-3.0 p.p. 32.8%
34.9%
+2.1 p.p.
Net Result ²
6.9
(150.4)
-
46.8
(183.2)
-
Margin 0.4%
-8.6%
-9.0 p.p. 0.8%
-2.7%
-3.5 p.p.
¹ JSL Logística + Movida, excluding intercompany operations.
² 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.
Management's Comments - JSL Consolidada
The year of 2016 was marked by the economic recession in Brazil. However, we presented a record Consolidated Gross Revenue of R$7.4 billion, a 12.5% growth 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.
Over the last six decades, JSL built a consistent growth path, reflecting the focus on customer service through innovative solutions. As a result, the Company remains in the leading position of the domestic logistics market, which is characterized by a constant development and diverse business opportunities.
We began 2017 with Movida's successful IPO, raising R$600 million, which strengthens our capital structure. After relevant investments since its acquisition three years ago, Movida occupied a leading position and consolidated its position as the second largest company in the RAC sector in Brazil. This year, the focus will be on the profitability of the operations primarily due to the process of consolidation of the used-vehicle stores and new RAC channels, together with a deceleration of the group's net investments.In 4Q16, Consolidated JSL recorded a total gross revenue of R$1.9 billion comprised by: R$1.3 billion from Services, R$386.3 million from the Sale of Assets, R$226.9 million from JSL Concessionárias, and R$9.4 million from Leasing, already taking into account the exclusion of intercompany operations.
EBITDA totaled R$188.5 million and EBITDA Margin was 13.8% in 4Q16, primarily consisting of:
JSL Logística: EBITDA of R$136.7 million (-36.0% YoY) and EBITDA Margin at 13.9% (-9.1 p.p. YoY). This variation was primarily due to: (i) the economic recession and drop in volume of some of the existing contracts; and some non-recurring items such as (ii) adjustments in purchase prices of certain companies and write-off of goodwill.
- Movida: EBITDA totaled R$60.6 million (-10.8% YoY), and EBITDA Margin stood at 26.2% (-10.4 p.p. YoY). The decrease in the EBITDA margin in comparison to last year is due to the accelerated expansion and the opening of 36 used-vehicle stores and 27 RAC stores last year, which are in the ramp-up phase.
Despite the negative net result, we would like to stress the improvements in cash during the period: the Company's Free Cash Flow increased R$337 million when compared to 2015, totaling R$269 million in the year.
JSL Logística
Financial performance Gross Revenue
In November 2015, we began a corporate restructuring process, with the transfer of assets and liabilities of Movida Gestão e Terceirização de Frotas S.A. (GTF) to other companies of the group through a partial spin-off. As a result, 2015 data are presented on a pro-forma basis for comparison purposes.
In 4Q16, total gross revenue amounted to R$1.2 billion (+10.8% YoY) with R$1.1 billion (+6.6% YoY) from Services and R$123.3 million (+71.3% YoY) from the Sale of Assets.
In 2016, total gross revenue was R$4.7 billion (+6.4% YoY) with R$4.4 billion (+7.2% YoY) from Services and R$311.6 million (-3.5% YoY) from the Sale of Assets.
Breakdown of Gross Revenue from Services by Business LineJSL - Logística
Gross Revenue (R$ million)
4Q15
3Q16
4Q16
Chg.
4Q16x4Q15
Chg.
4Q16x3Q16
2015
2016
Chg.
2016x2015
Gross Revenue 1,112.3 1,208.4 1,232.6 10.8% 2.0% 4,434.9 4,718.8 6.4%
Revenue from Services 1,040.3 1,140.2
1,109.3
6.6% -2.7% 4,112.0
4,407.2
7.2%
Revenue from Sale of Assets 72.0 68.2
123.3
71.3% 80.8% 322.9
311.6
-3.5%
Others 1.4%
General Cargo 5.9%
4Q15
Dedicated Services 55.2%
Others 1.4%
General Cargo 6.6%
4Q16
Dedicated Services 58.7%
Passenger Transportation 12.2%
Management and Outsourcing 25.2%
Passenger Transportation 10.9%
Management and Outsourcing 22.4%
Breakdown of Gross Revenue from Services by Economic SectorConsumer Goods
4.8%
Services
2.5%
Capital Goods
0.9%
Consumer Goods 4.5%
Services 2.7%
Capital Goods 1.1%
Chemical 6.9%
Passenger Transportation 8.4%
Steel and Mining 12.8%
Pulp and Paper 11.5%
Automotive 10.2%
4Q15
Public 12.6%
Agribusiness
Chemical 7.4%
Passenger Transportation 6.9%
Steel and Mining
9.8%
Food Industry 10.1%
Pulp and Paper 14.8%
Automotive 13.0%
4Q16
Public 11.1%
Food Industry 12.7%
Others 7.2%
9.6%
Others 9.6%
Agribusiness 8.9%
Growth of GDP vs. Growth of Gross Revenue from Services35.6%
25.0%
16.6%
7.5%
20.7%
12.6%
4.0%
19.0%
10.0%10.7%
1.9%3.0%
9.7% 8.4%
0.5%
6.1%7.0%
3.8%4.4%
2010 2011 2012 2013 2014 2015 2016
-3.8% -3.6%
Source: IBGE
Growth Gross Revenue from Services - Logistics Nominal GDP Real GDP
In 2016, JSL's Gross Revenue from Services increased 7.2% YoY, despite the economic recession in Brazil. This performance - higher than the GDP growth - is primarily explained by the acquisition of new clients and the provision of additional services to existing ones.
RSC - Revenue with Same ContractsRSC (R$ million)
4Q15
4Q16
Chg.
4Q15x4Q16
2015
2016
Chg.
2015x2016
Gross Revenue from Services 921.3
978.8
6.2% 3,610.2
3,574.7
-1.0%
Dedicated Services 531.1
556.6
4.8% 2,228.8
2,104.5
-5.6%
Management and Outsourcing (Vehic./Mach./Equip.)* 215.4
223.1
3.6% 665.3
700.1
5.2%
Passenger Transportation 105.6
114.1
8.0% 439.6
446.5
1.6%
General Cargo transportation 54.4
70.0
28.8% 217.5
262.7
20.8%
Others 14.8
15.0
1.3% 59.0
61.0
3.3%
* With adition of services / public / heavy
Net revenueJSL - Logística
Net Revenue (R$ million)
4Q15
3Q16
4Q16
Chg.
4Q16x4Q15
Chg.
4Q16x3Q16
2015
2016
Chg.
2016x2015
Net Revenue 999.6 1,065.5 1,096.6 9.7% 2.9% 3,965.4 4,179.7 5.4%
Net Revenue from Services 928.0 998.1
982.0
5.8% -1.6% 3,644.0
3,880.8
6.5%
Net Revenue from Sale of Assets 71.6 67.4
114.6
60.1% 70.0% 321.4
298.9
-7.0%
¹ Consider operations to be distributed to shareholders
CostsIn 4Q16, costs of services totaled R$832.4 million, (+9.7% YoY). The main change was verified in the costs with contractors and third parties (+22.0% YoY), impacted by the migration of some transactions from a model based on the intensive use of capital to one with a higher use of contractors and third parties.
In 2016, costs of services totaled R$3.2 billion, (+8.2% YoY). The main changes were verified in costs with auto parts, tires and maintenance (+16.5% YoY), as well as in costs with contractors and third parties (+10.9% YoY).
JSL - Logística
Costs
(R$ million)
4Q15
3Q16
4Q16
Chg.
4Q16x4Q15
Chg.
4Q16x3Q16
2015
2016
Chg.
2016x2015
Cost of Services
(759.0)
(837.3)
(832.4)
9.7%
-0.6%
(2,952.5)
(3,194.9)
8.2%
Personnel
(249.2)
(262.8)
(260.7)
4.6%
-0.8%
(991.9)
(1,026.6)
3.5%
Independent contractors / third parties
(167.5)
(186.5)
(204.3)
22.0%
9.5%
(650.3)
(721.4)
10.9%
Fuel and lubricants
(62.1)
(68.9)
(56.5)
-9.0%
-18.0%
(242.5)
(243.9)
0.6%
Parts / tires / maintenance
(64.6)
(76.8)
(73.7)
14.1%
-4.0%
(244.1)
(284.4)
16.5%
Depreciation
(103.0)
(110.8)
(114.9)
11.6%
3.7%
(386.9)
(428.9)
10.9%
Others
(112.7)
(131.5)
(122.3)
8.5%
-7.0%
(436.7)
(489.7)
12.1%
Costs of Sales of Assets
(71.3)
(67.6)
(108.8)
52.6%
60.9%
(320.7)
(293.7)
-8.4%
Sale of Assets used to provide services
(70.5)
(67.6)
(108.8)
54.3%
60.9%
(317.5)
(293.7)
-7.5%
Sale of Assets with Management
(0.8)
-
-
-100.0%
-
(3.2)
-
-100.0%
Total
(830.4)
(904.9)
(941.2)
13.3%
4.0%
(3,273.2)
(3,488.5)
6.6%
Total (as % of Total Net Revenue)
83.1%
84.9%
85.8%
+2.7 p.p.
+0.9 p.p.
82.5%
83.5%
1.0 p.p.
JSL SA published this content on 23 March 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 28 March 2017 14:45:09 UTC.
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