Mills: Growth of EBITDA and EBITDA Margin in all Divisions

RIO DE JANEIRO, May 12, 2011 /PRNewswire/ -- Mills Estruturas e Servicos de Engenharia S.A. (Mills) (BM&FBOVESPA: MILS3) recorded in the first quarter of 2011 (1Q11) growth in EBITDA and EBITDA margin for all divisions when compared to the previous quarter, due to cost reductions and the ramp-up of the rental revenue from the new branches of Jahu-Residential and Commercial Construction and the Rental divisions, which opened in the fourth quarter of 2010 (4Q10).

Main highlights of Mills 1Q11 performance:

• Net revenues of R$ 145.0 million, 25.5% higher than 1Q10 and 6.0% lower than 4Q10, since the growth in the rental revenues was more than offset by the drop in other revenues items, mainly sales revenues.
• The 21 new branches opened since November 2009 were responsible for revenues of R$ 30.7 million, or 21.2% of the total.
• EBITDA of R$ 52.8 million, 23.6% above 1Q10, and 16.5% above 4Q10.
• EBITDA margin of 36.4%, versus 37.0% in 1Q10 and 29.4% in 4Q10.
• Net earnings of R$ 22.2 million, 18.8% above 1Q10 and 26.1% below 4Q10, which benefited from the lower income taxes due to the statement of payment of interest on equity in the period, which is tax deductible.
• Capex reached R$ 184.6 million, of which R$ 94.6 million were invested in organic growth and R$ 90 million in acquisitions.
• Annualized return on invested capital (ROIC) of 13.8%, being negatively impacted by the investment of R$ 90 million to acquire a 25% stake in Rohr, with no counterpart effect in Mills' results.
• In April 2011, we issued non-convertible debentures amounting to R$ 270 million.
• Approval of the distribution of remuneration to shareholders, at the General Shareholders Meeting, in the total gross amount of R$ 28.1 million, in the form of interest on capital and dividends, with payment made on April 29, 2011.
• Fiscal council set up at the General Shareholders Meeting, on a non-permanent basis, for the 2011 fiscal year, and the appointment of its three members and their respective substitutes.
• In April 2011, we signed the audit service contract for the year of 2011 with a new company, Deloitte Touche Tohmatsu Auditores Independentes (Deloitte).

For the complete press release, please click here.  

Conference Call and Webcast
English - Simultaneous Translation
Date: May 13th, 2011, Friday
Time:
10:00 am New York time
11:00 am Rio de Janeiro time
3:00 pm London time
Phone: +1 866 890 2584 (Toll free) or + 55 11 2188 0155, code: Mills
Webcast: www.mills.com.br/ri

For the conference call and webcast details, please click here.

For further information, contact:
+55-21-2123-3700
[email protected]

Alessandra Gadelha - IR Officer
[email protected]

Camila Conrado - Investor Relations
[email protected]

This press release may include declarations about Mills' expectations regarding future events or results.  All declarations based upon future expectations, rather than historical facts, are subject to various risks and uncertainties.  Mills cannot guarantee that such declarations will prove to be correct.  These risks and uncertainties include factors related to the following: the Brazilian economy, capital markets, infrastructure, real estate and oil & gas sectors, among others, and governmental rules that are subject to change without previous notice.  To obtain further information on factors that may give rise to results different from those forecasted by Mills, please consult the reports filed with the Brazilian Comissao de Valores Mobiliarios (CVM).

SOURCE Mills Estruturas e Servicos de Engenharia S.A.