CCR – Results for the 4th quarter of 2018

SÃO PAULO, March 21, 2019 /PRNewswire/ — CCR S.A. (CCR), Brazil’s largest road concession operator in terms of revenue, announces its results for the fourth quarter of 2018.

4Q18 Highlights

  • Consolidated traffic fell by 3.9%. Excluding the effects of the suspended axle exemption, consolidated traffic increased by 0.4%. Including Renovias and ViaRio, consolidated traffic fell by 3.6%, but moved up by 0.7% excluding said exemption.
  • Same-basis* adjusted EBITDA increased by 3.6%, with an adjusted margin of 61.7% (+0.4 p.p.). Operational Adjusted EBITDA* went up 8.6%, with a margin of 60.3% (-1.0 p.p.).
  • Same-basis* net result totaled R$356.9 million, down 21.1%. Net loss was R$307.1 million. 

* The definitions of “same-basis” are described below the following table.


IFRS

Proforma

Financial Indicators (R$ MM)

4Q17

4Q18

Chg %

4Q17

4Q18

Chg %

Net Revenues1

2,021.1

2,233.5

10.5%

2,178.8

2,386.3

9.5%

Adjusted Net Revenues on the same basis2

2,021.1

2,083.2

3.1%

2,178.8

2,236.0

2.6%

Adjusted EBIT3

883.3

(24.4)

n.m.

950.6

44.8

-95.3%

Adjusted EBIT Mg.4

43.7%

-1.1%

-44.8 p.p.

43.6%

1.9%

-41.7 p.p.

Ajusted EBIT on the same basis2

883.3

747.6

-15.4%

950.6

816.7

-14.1%

Ajusted EBIT Mg. on the same basis2

43.7%

35.9%

-7.8 p.p.

43.6%

36.5%

-7.1 p.p.

Adjusted EBITDA5

1,239.6

535.3

-56.8%

1,342.4

640.4

-52.3%

Adjusted EBITDA Mg.4

61.3%

24.0%

-37.3 p.p.

61.6%

26.8%

-34.8 p.p.

Operating adjusted EBITDA6

1,239.6

1,346.5

8.6%

1,342.4

1,451.5

8.1%

Operating adjusted EBITDA Mg.4

61.3%

60.3%

-1.0 p.p.

61.6%

60.8%

-0.8 p.p.

Adjusted EBITDA on the same basis2

1,239.6

1,284.4

3.6%

1,342.4

1,389.5

3.5%

Adjusted EBITDA Mg. on the same basis2

61.3%

61.7%

0.4 p.p.

61.6%

62.1%

0.5 p.p.

Net Income

329.1

(307.1)

n.m.

329.1

(307.1)

n.m.

Net Income on the same basis2

452.2

356.9

-21.1%

452.2

356.9

-21.1%

Net Debt / Adjusted EBITDA LTM (x)7

2.3

2.8


2.3

2.7


Adjusted EBITDA5 / Interest and Monetary Variation (x)

5.2

1.6


5.1

1.8


   


IFRS

Proforma

Financial Indicators (R$ MM)

2017

2018

Chg %

2017

2018

Chg %

Net Revenues1

7,537.7

8,136.7

7.9%

8,192.9

8,845.3

8.0%

Adjusted Net Revenues on the same basis2

7,174.7

7,440.3

3.7%

7,708.5

7,981.2

3.5%

Adjusted EBIT3

3,762.1

2,187.5

-41.9%

4,058.7

2,502.3

-38.3%

Adjusted EBIT Mg.4

49.9%

26.9%

-23.0 p.p.

49.5%

28.3%

-21.2 p.p.

Ajusted EBIT on the same basis2

3,014.5

2,756.1

-8.6%

3,258.9

3,003.6

-7.8%

Ajusted EBIT Mg. on the same basis2

42.0%

37.0%

-5.0 p.p.

42.3%

37.6%

-4.7 p.p.

Adjusted EBITDA5

5,169.0

4,070.6

-21.2%

5,603.6

4,538.0

-19.0%

Adjusted EBITDA Mg.4

68.6%

50.0%

-18.6 p.p.

68.4%

51.3%

-17.1 p.p.

Operating adjusted EBITDA6

4,620.8

4,881.8

5.6%

5,055.4

5,349.1

5.8%

Operating adjusted EBITDA Mg.4

61.3%

60.0%

-1.3 p.p.

61.7%

60.5%

-1.2 p.p.

Adjusted EBITDA on the same basis2

4,389.4

4,560.0

3.9%

4,750.8

4,913.1

3.4%

Adjusted EBITDA Mg. on the same basis2

61.2%

61.3%

0.1 p.p.

61.6%

61.6%

0.0 p.p.

Net Income

1,797.5

782.7

-56.5%

1,797.5

782.7

-56.5%

Net Income on the same basis2

1,472.2

1,382.0

-6.1%

1,472.2

1,382.0

-6.1%

Net Debt / Adjusted EBITDA LTM (x)7

2.3

2.8


2.3

2.7


Adjusted EBITDA5 / Interest and Monetary Variation (x)

4.7

3.7


4.7

3.9


1 Net revenue excludes construction revenue.
2 Same-basis figures exclude:
I.     In the fourth-quarter comparisons: (i) ViaMobilidade, whose concession agreement was

       signed in April 2018; (ii) San José International Airport, in which we increased our stake and,

       consequently, acquired control in October 2018; (iii) provision for fines and penalties arising

       from a Leniency Agreement signed with the Federal Prosecution Office, pursuant to the

       Material Fact of March 6, 2019, with an impact of R$750.0 million on EBITDA and R$644.4

       million on net income;(iv) a provision arising from the Settlement Agreement signed with the

       Public Prosecution Office of São Paulo, with an impact of R$81.5 million on EBITDA and

       R$53.8 million on net income; (v) non-recurring expenses and provisions related to severance

       costs at the CCR Group, with an impact of R$74.4 million on EBITDA and R$49.1 million on 

       net income; (vi) non-recurring expenses related to the Independent Committee, with an impact

       of R$15.5 million on EBITDA and R$10.2 million on net income; and (vii) remeasurement of    

       the stake previously held at San José, leading to an increase in investments (concession right

       generated at the acquisition), with an impact of R$91.6 million on EBITDA and R$60.5 million

       on net income (please refer to the Costs section for more information).

II.    In the annual comparisons: (i) the items described above; (ii) ViaQuatro, which became a   

       subsidiary as of 2Q17; (iii) non-recurring expenses related to severance costs with an impact

       of R$31.8 million on EBITDA and R$21.0 million on net income in 3Q18; (iv) non-recurring

       expenses related to the Independent Committee, with an impact of R$30.8 million on EBITDA

       and R$23.0 million on net income in 9M18; (v) the non-recurring effect of the acquisition of

       stakes in ViaQuatro and ViaRio, with an impact of R$548.1 million on EBITDA and R$361.8

       million on net income in 2Q17; and (vi) net income and proforma comparisons exclude ViaRio,

       in which CCR’s stake increased from 33.33% to 66.66% as of May 2017.
3Calculated by adding net revenue, construction revenue, cost of services and administrative expenses.
4 The operational adjusted and adjusted EBIT and EBITDA margins were calculated by dividing operational adjusted and adjusted EBIT and EBITDA by net revenue, excluding construction revenue, as required by IFRS.
5 Calculated excluding non-cash expenses: depreciation and amortization, provision for maintenance and the recognition of prepaid concession expenses.
6 In addition to non-cash expenses excluded from adjusted EBITDA, it excludes non-cash non-operating revenue and/or expenses.
I.     In 4Q18 and 2018: (i) non-recurring from the provisions for fines and penalties arising from the

       signature of the Leniency and Settlement Agreements mentioned above, of –R$750.0 million

       and –R$81.5 million, respectively; (ii) non-recurring from the remeasurement of the stake held

       at Aeris, of R$91.6 million (for more details, see other costs item) and; (iii) provision from the

       Collaboration Incentive Program (PIC), of –R$71.2 million.

II.    In 2017, the effects from the acquisition of stake at ViaQuatro and ViaRio, mentioned in item 

       2. 
7 LTM 4Q17 operating adjusted EBITDA includes non-recurring effects of the acquisition of stakes in ViaQuatro and ViaRio (R$548.1 million) and, in 4Q18, it includes the events mentioned above.

Subsequent Events

  • On January 11, we signed a 30-year concession agreement for Rodovias Integradas do Sul S.A. (ViaSul). The commercial operations began on February 15, with two toll plazas. This achievement represents the materialization of yet another important stage of CCR’s strategic planning, designed to achieve qualified growth, create value for shareholders and contribute to Brazil’s socioeconomic and environmental development.
  • On March 11, the consortium comprised of CCR (80%) and RuasInvest Participações S.A. (20%) presented the best proposal under onerous concession, to provide public passenger transport services for Line 15 (Silver) of the São Paulo rail network, pending analysis of the qualification documents and the respective declaration of the winner of the bidding process.

Conference Calls/Webcast

Access to the conference calls/webcasts:

Conference call in Portuguese with simultaneous translation into English:

Friday, March 22, 2019
12:00 a.m. São Paulo / 11:00 a.m. New York

Participants calling from Brazil: (11) 3193-1001 or (11) 2820-4001
Participants calling from the United States: 1-800-492-3904 or (+1) 646 828-8246
Access Code: CCR
Replay: (11) 3193-1012 or (11) 2820-4012
Code: 1517957#

The instructions to participate in these events are available on CCR’s website: www.ccr.com.br/ir.      

IR Contacts

Marcus Macedo (+55 11) 3048-5941
Flávia Godoy: (+55 11) 3048-5955
Daniel Kuratomi: (+55 11) 3048-6353
Marcela Dias (+55 11) 3048-2108

SOURCE CCR S.A.

Related Links

http://www.ccr.com.br/ri

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