CCR - Results for the 4th quarter of 2018

PR Newswire

SÃO PAULO, March 21, 2019

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

¹Net 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.
⁴The 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.
⁶In 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.
⁷LTM 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#