Embraer Earnings Results 1st Quarter 2020
SÃO PAULO, June 1, 2020 /PRNewswire/ -- EMBRAER S.A. (NYSE: ERJ; B3: EMBR3) releases its First Quarter Earnings Results.
HIGHLIGHTS
- Embraer delivered five commercial jets and nine executive jets (five light / four large) in 1Q20, and the Company's firm order backlog at the end of 1Q20 was US$ 15.9 billion;
- EBIT and EBITDA in 1Q20 as reported were US$ (46.9) million and US$ 9.3 million, respectively, yielding EBIT margin of -7.4% and EBITDA margin of 1.5%. This compares to EBIT of US$ (15.2) million (-1.8% EBIT margin) and EBITDA of US$ 30.9 million (3.8% EBITDA margin) in 1Q19.
- The 1Q20 results include special items due to the impacts of COVID-19: 1) US$ 22.2 million in negative fair value changes on the Company's stake in Republic Airways Holdings, and 2) US$ 33.4 million in bad debt provisions on accounts receivables, as the Company adopted a more conservative approach in the context of the COVID-19 pandemic;
- Adjusted EBIT and EBITDA were US$ 8.7 million and US$ 64.9 million, respectively, yielding adjusted EBIT margin of 1.4% and adjusted EBITDA margin of 10.2%;
- 1Q20 Net loss attributable to Embraer shareholders and Loss per ADS were US$ (292.0) million and US$ (1.59), respectively. Adjusted net loss (excluding special items and deferred income tax and social contribution) for 1Q20 was US$ (104.0) million, with Adjusted loss per ADS of US$ (0.57). The adjusted net loss in 1Q19 was US$ (61.8) million, for an adjusted loss per ADS of US$ (0.34) in the quarter;
- Embraer reported Free cash flow of US$ (676.5) million in 1Q20, in line with free cash flow of US$ (665.3) million reported in 1Q19, which is historically negative due to seasonal working capital consumption;
- Embraer's liquidity remains solid as the Company finished the quarter with total cash of US$ 2,500.6 million and major debt maturities starting in 2022 onwards. Total debt at the end of 1Q20 was US$ 3,832.2 million, yielding a net debt position of US$ 1,331.6 million versus net debt of US$ 1,103.7 million in 1Q19. Embraer continues to evaluate additional financing to further enhance its cash position;
- Due to the uncertainty related to the COVID-19 pandemic, financial and deliveries guidance for the Company's 2020 results remains suspended at this point.
MAIN FINANCIAL INDICATORS
in millions of U.S dollars, except % and earnings per share data |
|||
1Q19 |
4Q19 |
1Q20 |
|
Revenue |
823.3 |
2,085.0 |
633.8 |
EBIT |
(15.2) |
(67.6) |
(46.9) |
EBIT margin % |
-1.8% |
-3.2% |
-7.4% |
Adjusted EBIT |
(15.2) |
4.0 |
8.7 |
Adjusted EBIT margin % |
-1.8% |
0.2% |
1.4% |
EBITDA |
30.9 |
(5.8) |
9.3 |
EBITDA margin % |
3.8% |
-0.3% |
1.5% |
Adjusted EBITDA |
30.9 |
65.8 |
64.9 |
Adjusted EBITDA margin % |
3.8% |
3.2% |
10.2% |
Adjusted net income (Loss) |
(61.8) |
(93.4) |
(104.0) |
Adjusted earnings (losses) per share - ADS basic |
(0.3360) |
(0.5077) |
(0.5651) |
Net income (loss) attributable to Embraer Shareholders |
(42.5) |
(209.8) |
(292.0) |
Earnings (losses) per share - ADS basic (US$) |
(0.2311) |
(1.1404) |
(1.5867) |
Adjusted free cash flow |
(665.3) |
739.4 |
(676.5) |
Net debt |
(1,103.7) |
(612.4) |
(1,331.6) |
For additional information, please check the full document on our website ri.embraer.com.br
INVESTOR RELATIONS
Eduardo Couto, Chris Thornsberry, Caio Pinez, Nádia Santos, and Viviane Pinheiro.
(+55 11) 3040-6874
[email protected]
ri.embraer.com.br
CONFERENCE CALL INFORMATION
Embraer will host a conference call to present its 1Q20 Results on Monday, June 1, 2020 at 10:30 AM (SP) / 9:30 AM (NY). The conference call will also be broadcast live over the web at ri.embraer.com.br
Conference ID: EMBRAER
Telephones USA / Canada: +1 (412) 717-9627 / +1 (844) 204-8942
Telephones U.K.: +44 20 3795-9972
Telephones Brazil: +55 (11) 4210-1803 / +55 (11) 3181-8565
SOURCE Embraer S.A.
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