PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
São Paulo, S.P., 05429-900
Federative Republic of Brazil
annual reports under cover Form 20-F or Form 40-F.
Form 20-F ___X___ Form 40-F ______
in paper as permitted by Regulation S-T Rule 101(b)(1)__.
in paper as permitted by Regulation S-T Rule 101(b)(7)__.
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.
Yes ______ No ___X___
registrant in connection with Rule 12g3-2(b):
CIA. DE SANEAMENTO BÁSICO DO ESTADO DE SÃO PAULO - SABESP
Rui de Britto Álvares Affonso
Chief Financial Officer and Investor Relations Officer
Mario Azevedo de Arruda Sampaio
Head of Capital Markets and Investor Relations
| SABESP announces 1Q16 results | ||
|
São Paulo, May 12, 2016 - Companhia de Saneamento Básico do Estado de São Paulo - SABESP (BM&FBovespa: SBSP3; NYSE: SBS), one of the largest water and sewage services providers in the world based on the number of costumers, announces today its 1Q16 results. The Company’s operating and financial information, except when indicated otherwise is presented in Brazilian Reais, in accordance with the Brazilian Corporate Law. All comparisons in this release, unless otherwise stated, refer to the same period of 2015. |
SBSP3: R$ 27.73/share SBS: US$ 7.84 (ADR=1 share) Total shares: 683,509,869 Market value: R$ 18.9 billion Closing quote: 05/12/2016
|
1. Financial highlights
|
R$ million | |||||
|
|
|
1Q16 |
1Q15 |
Chg. (R$) |
% |
|
|
Gross operating revenue |
2,570.6 |
2,004.5 |
566.1 |
28.2 |
|
|
Construction revenue |
625.3 |
588.4 |
36.9 |
6.3 |
|
|
COFINS and PASEP taxes |
(168.1) |
(124.3) |
(43.8) |
35.2 |
|
(=) |
Net operating revenue |
3,027.8 |
2,468.6 |
559.2 |
22.7 |
|
|
Costs and expenses |
(1,794.4) |
(789.1) |
(1,005.3) |
127.4 |
|
|
Construction costs |
(612.4) |
(576.4) |
(36.0) |
6.2 |
|
|
Equity result |
2.1 |
1.1 |
1.0 |
90.9 |
|
Other operating revenue (expenses), net |
5.5 |
32.1 |
(26.6) |
(82.9) | |
|
(=) |
Earnings before financial result, income tax and social contribution |
628.6 |
1,136.3 |
(507.7) |
(44.7) |
|
|
Financial result |
340.2 |
(985.8) |
1,326.0 |
(134.5) |
|
(=) |
Earnings before income tax and social contribution |
968.8 |
150.5 |
818.3 |
543.7 |
|
|
Income tax and social contribution |
(340.0) |
167.7 |
(507.7) |
(302.7) |
|
(=) |
Net income |
628.8 |
318.2 |
310.6 |
97.6 |
|
|
Earnings per share* (R$) |
0.92 |
0.47 |
|
|
|
* Total shares = 683,509,869 |
Adjusted EBITDA Reconciliation (Non-accounting measures)
|
R$ million | |||||
|
|
|
1Q16 |
1Q15 |
Chg. (R$) |
% |
|
|
Net income |
628.8 |
318.2 |
310.6 |
97.6 |
|
Income tax and social contribution |
340.0 |
(167.7) |
507.7 |
(302.7) | |
|
|
Financial result |
(340.2) |
985.8 |
(1,326.0) |
(134.5) |
|
Other operating revenues (expenses), net |
(5.5) |
(32.1) |
26.6 |
(82.9) | |
|
(=) |
Adjusted EBIT* |
623.1 |
1,104.2 |
(481.1) |
(43.6) |
|
Depreciation and amortization |
284.7 |
253.3 |
31.4 |
12.4 | |
|
(=) |
Adjusted EBITDA ** |
907.8 |
1,357.5 |
(449.7) |
(33.1) |
|
|
(%) Adjusted EBITDA margin |
30.0 |
55.0 |
|
|
(*) Adjusted EBIT is net income before: (i) other operating revenues/expenses, net; (ii) financial result; and (iii) income tax and social contribution.
(**) Adjusted EBITDA is net income before: (i) depreciation and amortization expenses; (ii) income tax and social contribution; (iii) financial result; and (iv) other operating revenues/expenses, net.
In 1Q16, net operating revenue, including construction revenue, reached R$ 3.0 billion; a 22.7% increase compared to the same period of 2015.
Costs and expenses, including construction costs, totaled R$ 2.4 billion, 76.3% higher than the R$ 1.4 billion recorded in 1Q15.
Adjusted EBIT, in the amount of R$ 623.1 million, dropped 43.6% from R$ 1,104.2 million recorded in 1Q15.
Adjusted EBITDA, in the amount of R$ 907.8 million, reduced 33.1% from R$ 1,357.5 million recorded in 1Q15 (R$ 3,524.6 million in the last 12 months).
The adjusted EBITDA margin was 30.0% in 1Q16, versus 55.0% in 1Q15 (28.7% in the last 12 months). Excluding construction revenues and construction costs, the adjusted EBITDA margin was 37.2% in 1Q16 (71.6% in 1Q15 and 38.8% in the last 12 months).
In 1Q16 the Company recorded a net income of R$ 628.8 million, in comparison to a net income of R$ 318.2 million in 1Q15.
2. Gross operating revenue
Gross operating revenue from water and sewage, not including construction revenue, totaled R$ 2.6 billion, an increase of R$ 566.1 million or 28.2%, when compared to the R$ 2.0 billion recorded in 1Q15.
The main factors that led to this variation were:
· 15.2% tariff increase (7.8% ordinary tariff adjustment and 6.9% extraordinary tariff revision) since June 2015;
· Lower bonus granted within the Water Consumption Reduction Incentive Program, with a R$ 153.8 million impact in 1Q16, versus the R$ 211.2 million recorded in 1Q15;
· Application of contingency tariff, in the amount of R$ 160.6 million in 1Q16 (R$ 79.3 million in 1Q15); and
· Increase of 1.9% in the Company’s total billed volume (1.0% in water and 3.0% in sewage).
3. Construction revenue
Construction revenue increased R$ 36.9 million or 6.3%, when compared to the previous year. The variation was mainly due to higher investments in the municipalities served by the Company.
4. Billed volume
The following tables show the water and sewage billed volume, quarter-on-quarter, per customer category and region.
|
WATER AND SEWAGE BILLED VOLUME (1) PER CUSTOMER CATEGORY - million m3 | |||||||||
|
|
|
Water |
|
|
Sewage |
|
Water + Sewage |
| |
|
Category |
1Q16 |
1Q15 |
% |
1Q16 |
1Q15 |
% |
1Q16 |
1Q15 |
% |
|
Residential |
380.4 |
369.1 |
3.1 |
320.3 |
308.7 |
3.8 |
700.7 |
677.8 |
3.4 |
|
Commercial |
40.4 |
40.5 |
(0.2) |
38.2 |
38.1 |
0.3 |
78.6 |
78.6 |
- |
|
Industrial |
7.7 |
8.5 |
(9.4) |
9.5 |
9.9 |
(4.0) |
17.2 |
18.4 |
(6.5) |
|
Public |
9.5 |
10.5 |
(9.5) |
8.4 |
8.0 |
5.0 |
17.9 |
18.5 |
(3.2) |
|
Total retail |
438.0 |
428.6 |
2.2 |
376.4 |
364.7 |
3.2 |
814.4 |
793.3 |
2.7 |
|
Wholesale (3) |
52.0 |
56.5 |
(8.0) |
5.7 |
6.3 |
(9.5) |
57.7 |
62.8 |
(8.1) |
|
Total |
490.0 |
485.1 |
1.0 |
382.1 |
371.0 |
3.0 |
872.1 |
856.1 |
1.9 |
|
WATER AND SEWAGE BILLED VOLUME (1) PER REGION - million m3 | |||||||||
|
|
Water |
|
Sewage |
|
Water + Sewage |
| |||
|
Region |
1Q16 |
1Q15 |
% |
1Q16 |
1Q15 |
% |
1Q16 |
1Q15 |
% |
|
Metropolitan |
279.0 |
267.9 |
4.1 |
241.5 |
230.9 |
4.6 |
520.5 |
498.8 |
4.4 |
|
Regional (2) |
159.0 |
160.7 |
(1.1) |
134.9 |
133.8 |
0.8 |
293.9 |
294.5 |
(0.2) |
|
Total retail |
438.0 |
428.6 |
2.2 |
376.4 |
364.7 |
3.2 |
814.4 |
793.3 |
2.7 |
|
Wholesale (3) |
52.0 |
56.5 |
(8.0) |
5.7 |
6.3 |
(9.5) |
57.7 |
62.8 |
(8.1) |
|
Total |
490.0 |
485.1 |
1.0 |
382.1 |
371.0 |
3.0 |
872.1 |
856.1 |
1.9 |
(1) Unaudited
(2) Including coastal and interior region
(3) Reused water volume and non-domestic sewage are included in
5. Costs, administrative, selling and construction expenses
In 1Q16, costs, administrative, selling and construction expenses, grew 76.3% (R$ 1,041.3 million). Excluding construction costs, total costs and expenses increased by 127.4%.
Excluding the effects of the non-recurring GESP Reimbursement transaction, costs and expenses increased by 16.7%.
As a percentage of net revenue, costs and expenses were 55.3% in 1Q15 and 79.5% in 1Q16.Excluding the effects of the GESP Reimbursement effects, costs and expenses as a percentage of net revenue came to 83.5% in 1Q15.
|
R$ million | ||||
|
|
1Q16 |
1Q15 |
Chg. (R$) |
% |
|
Payroll and benefits and pension plan obligations |
574.3 |
534.5 |
39.8 |
7.4 |
|
Supplies |
36.2 |
48.7 |
(12.5) |
(25.7) |
|
Treatment supplies |
75.1 |
72.3 |
2.8 |
3.9 |
|
Services |
282.4 |
295.9 |
(13.5) |
(4.6) |
|
Electric power |
240.4 |
159.1 |
81.3 |
51.1 |
|
General expenses |
224.6 |
54.4 |
170.2 |
312.9 |
|
Tax expenses |
20.6 |
19.9 |
0.7 |
3.5 |
|
São Paulo state government reimbursement |
- |
(696.3) |
696.3 |
- |
|
Sub-total |
1,453.6 |
488.5 |
965.1 |
197.6 |
|
Depreciation and amortization |
284.7 |
253.3 |
31.4 |
12.4 |
|
Provision for doubtful credits |
56.1 |
47.3 |
8.8 |
18.6 |
|
Sub-total |
340.8 |
300.6 |
40.2 |
13.4 |
|
Costs, administrative and selling expenses |
1,794.4 |
789.1 |
1,005.3 |
127.4 |
|
Construction costs |
612.4 |
576.4 |
36.0 |
6.2 |
|
Costs, adm., selling and construction expenses |
2,406.8 |
1,365.5 |
1,041.3 |
76.3 |
|
% of net revenue |
79.5 |
55.3 |
|
|
5.1. Payroll and benefits and pension plan obligations
In 1Q16 payroll and benefits increased R$ 39.8 million or 7.4%, due to the following:
· R$ 18.8 million in the provision for the pension plan, arising from changes in actuarial assumptions;
· R$ 14.5 million, mainly due to the average wage increase of 9.7% in May 2015 and by the application of 1% related to the career and wage plan, since July 2015; and
· R$ 5.9 million, due to the adjustment in healthcare expenses since July 2015.
5.2. Supplies
In 1Q16, expenses with supplies decreased R$ 12.5 million or 25.7%, from R$ 48.7 million to R$ 36.2 million, mostly due to the following:
· Fuel, in the amount of R$ 6.7 million, mostly due to the fact that the generators used to pump water from the Cantareira System technical reserve were turned off in December 2015; and
· Lower use of materials in preventive and corrective maintenance in water and sewage systems, in computerized systems and conservation of properties and installations, in the amount of R$ 5.9 million.
5.3. Services
Services expenses, in the amount of R$ 282.4 million, dropped R$ 13.5 million or 4.6%, in comparison to R$ 295.9 million in1Q15. The main factors that led to this decrease were:
· Water and sewage systems and connections maintenance, in the amount of R$ 10.3 million; and
· Advertising campaigns, in the amount of R$ 4.0 million, mainly due to the intensification in 1Q15, for the rational use of water.
5.4. Electric power
Electric power expenses totaled R$ 240.4 million, an increase of R$ 81.3 million or 51.1% in comparison to the R$ 159.1 million in 1Q15. The main factors that contributed to this increase were:
· Average increase of 38.3% in the regulated market tariffs, with no significant variation in consumption;
· Average increase of 165.2% in the grid market tariffs (TUSD), with a 5.3% decrease in consumption; and
· Average increase of 10.5% in the free market tariff, with a 7.5% decrease in consumption.
In 1Q16 the regulated market accounted for 39.3% of the total electric power consumed by the Company, the free market accounted for 31.0% and the grid market accounted for 29.7% of total consumption.
5.5. General expenses
General expenses increased R$ 170.2 million, totaling R$ 224.6 million, versus the R$ 54.4 million recorded in 1Q15, mainly due to:
· R$ 138.7 million increase in the provision for lawsuits; and
· Higher provision for the Municipal Fund for Environmental Sanitation and Infrastructure, in the amount of R$ 27.7 million, as a result of the increase in revenues with the municipality of São Paulo.
5.6. São Paulo state government reimbursement
In 1Q15, the Company entered into an agreement with the São Paulo state government to receive the undisputed amount, related to the state’s debt with the Company, for the payment of the benefits to former employees (G0) dealt with by state Law #4,819, of August 26, 1958, that generated a credit in the result in the amount of R$ 696.3 million.
5.7. Depreciation and amortization
R$ 31.4 million increase or 12.4%, reaching R$ 284.7 million in comparison to the R$ 253.3 million recorded in 1Q15, largely due to the beginning of operations of intangible assets, in the amount of R$ 2.4 billion.
5.8. Provision for doubtful credits
Increased R$ 8.8 million, mainly due to the lower recovery of amounts through settlements in 1Q16, in the amount of R$ 12.8 million, partially offset by the reduction in provisions for revenue losses, in the amount of R$ 4.0 million.
6. Other operating revenues (expenses), net
Other net operational revenues and expenses reported a negative variation of R$ 26.6 million, mainly due to the R$ 21.5 million drop from the sale of surplus electricity between the analyzed periods.
7. Financial result
|
R$ million | ||||
|
|
1Q16 |
1Q15 |
Chg. |
% |
|
Financial expenses, net of revenues |
(99.8) |
(63.8) |
(36.0) |
56.4 |
|
Net monetary and exchange variation |
440.0 |
(922.0) |
1,362.0 |
(147.7) |
|
Financial result |
340.2 |
(985.8) |
1,326.0 |
(134.5) |
7.1. Financial revenues and expenses
|
R$ million | ||||
|
|
1Q16 |
1Q15 |
Chg. |
% |
|
Financial expenses |
|
|
|
|
|
Interest and charges on international loans and financing |
(37.6) |
(30.4) |
(7.2) |
23.7 |
|
Interest and charges on domestic loans and financing |
(95.2) |
(86.7) |
(8.5) |
9.8 |
|
Other financial expenses |
(52.5) |
(20.2) |
(32.3) |
159.9 |
|
Total financial expenses |
(185.3) |
(137.3) |
(48.0) |
35.0 |
|
Financial revenues |
85.5 |
73.5 |
12.0 |
16.3 |
|
Financial expenses net of revenues |
(99.8) |
(63.8) |
(36.0) |
56.4 |
7.1.1. Financial expenses
Financial expenses grew R$ 48.0 million. The main reasons were:
· R$ 7.2 million in interest and charges on international loans and financing, due to the increase in the debt balance, despite the depreciation of the US dollar and the Yen versus the Brazilian Real in 1Q16 (-8.9% and -2.4%, respectively);
· R$ 8.5 million in interest and charges on domestic loans and financing, especially due to the funding of the 20th debenture issue, in December 2015; and
· R$ 32.3 million in other financial expenses, largely due to the higher provision of interest on lawsuits in 1Q16.
7.1.2. Financial revenues
Financial revenues increased R$ 12.0 million, largely due to the increased recognition of interest on installment agreements and financial investments in 1Q16.
7.2. Monetary and exchange rate variation on assets and liabilities
|
R$ million | ||||
|
|
1Q16 |
1Q15 |
Chg. |
% |
|
Monetary variation on loans and financing |
(52.9) |
(56.2) |
3.3 |
(5.9) |
|
Currency exchange variation on loans and financing |
483.3 |
(884.5) |
1,367.8 |
(154.6) |
|
Other monetary variations |
(45.1) |
(12.2) |
(32.9) |
269.7 |
|
Monetary/exchange rate variation on liabilities |
385.3 |
(952.9) |
1,338.2 |
(140.4) |
|
Monetary/exchange rate variation on assets |
54.7 |
30.9 |
23.8 |
77.0 |
|
Monetary/exchange rate variation, net |
440.0 |
(922.0) |
1,362.0 |
(147.7) |
The effect in 1Q16 was R$ 1,362.0 million, lower than in 1Q15, especially due to the positive variation of R$ 1,367.8 million in expenses with exchange rate variation on loans and financing, due to the depreciation of the US dollar and the Yen versus the Brazilian Real in 1Q16 (-8.9% and -2.4%, respectively), when compared to the appreciation recorded in 1Q15 (20.8% and 20.3%, respectively). This amount was partially offset by the increase of R$ 32.9 million from higher provisions for the monetary restatement of lawsuits in 1Q16.
8. Income tax and social contribution
Grew R$ 507.7 million, due to the increase in taxable income in 1Q16, when compared to the net loss recorded in 1Q15.
9. Indicators
9.1. Operating
In the first quarter of 2016, due to the greater availability of water, production volume increased by 8.8%.
Water losses moved up this quarter, although this was already expected given that the reduction observed until now was not only due to the loss control initiatives, but was also to the water crisis and the consequent need to lower network pressures as a means of managing demand.
|
Operating indicators * |
1Q16 |
1Q15 |
% |
|
Water connections (1) |
8,477 |
8,258 |
2.7 |
|
Sewage connections (1) |
6,917 |
6,705 |
3.2 |
|
Population directly served - water (2) |
25.6 |
25.3 |
1.2 |
|
Population directly served - sewage (2) |
22.9 |
22.5 |
1.8 |
|
Number of employees |
13,816 |
14,167 |
(2.5) |
|
Water volume produced (3) |
667 |
613 |
8.8 |
|
IPM - Measured water loss (%) |
29.9 |
29.0 |
3.1 |
|
IPDt (liters/connection x day) |
275 |
290 |
(5.2) |
(1) Total connections, active and inactive, in thousand units at the end of the period
(2) In million inhabitants, at the end of the period. Not including wholesale
(3) In million of cubic meters
(*) Unaudited
9.2. Financial
|
Economic Indexes * (quarter end) |
1Q16 |
1Q15 |
|
Accumulated Amplified Consumer Price Index (%) |
2.62 |
3.83 |
|
Accumulated Referential Rate (%) |
0.45 |
0.23 |
|
Interbank Deposit Certificate (%) |
14.13 |
12.60 |
|
US DOLAR (R$) |
3.5589 |
3.2080 |
|
YEN (R$) |
0.03166 |
0.02675 |
(*) Unaudited
10. Loans and financing
|
R$ million | ||||||||
|
INSTITUTION |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 to 2038 |
Total |
|
Local market |
|
|
|
|
|
|
|
|
|
Caixa Econômica Federal |
38.1 |
55.0 |
58.6 |
60.3 |
62.4 |
65.5 |
728.0 |
1,067.9 |
|
Debentures |
89.6 |
592.8 |
876.2 |
978.9 |
406.1 |
193.1 |
422.8 |
3,559.5 |
|
BNDES |
59.6 |
79.5 |
79.5 |
79.5 |
61.8 |
61.3 |
261.0 |
682.2 |
|
Commercial Leasing |
8.3 |
22.0 |
23.3 |
24.7 |
26.3 |
27.9 |
408.0 |
540.5 |
|
Others |
0.5 |
0.7 |
1.4 |
1.4 |
1.3 |
1.3 |
5.2 |
11.8 |
|
Interest and charges |
58.2 |
12.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
70.2 |
|
Local market total |
254.3 |
762.0 |
1,039.0 |
1,144.8 |
557.9 |
349.1 |
1,825.0 |
5,932.1 |
|
International market |
|
|
|
|
|
|
|
|
|
IADB |
117.5 |
202.7 |
113.3 |
113.3 |
113.3 |
113.3 |
1,209.2 |
1,982.6 |
|
IBRD |
0.0 |
0.0 |
0.0 |
7.3 |
14.5 |
14.5 |
181.0 |
217.3 |
|
Eurobonds |
498.2 |
0.0 |
0.0 |
0.0 |
1,241.7 |
0.0 |
0.0 |
1,739.9 |
|
JICA |
34.6 |
70.6 |
72.0 |
116.2 |
116.2 |
116.2 |
1,274.5 |
1,800.3 |
|
BID 1983AB |
85.2 |
85.2 |
84.3 |
63.0 |
60.9 |
27.4 |
52.3 |
458.3 |
|
Interest and charges |
62.6 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
62.6 |
|
International market total |
798.1 |
358.5 |
269.6 |
299.8 |
1,546.6 |
271.4 |
2,717.0 |
6,261.0 |
|
Total |
1,052.4 |
1,120.5 |
1,308.6 |
1,444.6 |
2,104.5 |
620.5 |
4,542.0 |
12,193.1 |
11. Capex
In the first quarter of 2016, the Company invested R$ 665.4 million.
12. Conference calls
|
Apimec Meeting May 17, 2016 2:00 pm (US EST) / 3:00 pm (Brasília) Rua Nicolau Gagliardi, 313 Pinheiros São Paulo – Brasil
Live webcast Click here to access
|
In English May 17, 2016 10:30 am (Brasília) / 9:30 am (US EST) Dial in: 1 (412) 317-5486 Code: Sabesp
Replay available for 7 days Dial in: 1(412) 317-0088 Code: 10078347
Click here to access the webcast
|
For more information, please contact:
Mario Arruda Sampaio
Head of Capital Markets and Investor Relations
Phone.(55 11) 3388-8664
E-mail: maasampaio@sabesp.com.br
Angela Beatriz Airoldi
Investor Relations Manager
Phone.(55 11) 3388-8793
E-mail: abairoldi@sabesp.com.br
Statements contained in this press release may contain information that is forward-looking and reflects management's current view and estimates of future economic circumstances, industry conditions, SABESP performance, and financial results. Any statements, expectations, capabilities, plans and assumptions contained in this press release that do not describe historical facts, such as statements regarding the declaration or payment of dividends, the direction of future operations, the implementation of principal operating and financing strategies and capital expenditure plans, the factors or trends affecting financial condition, liquidity or results of operations are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. There is no guarantee that these results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.
Income Statement
|
Brazilian Corporate Law |
R$ '000 | |
|
|
1Q16 |
1Q15 |
|
Net Operating Revenue |
3,027,842 |
2,468,641 |
|
Operating Costs |
(1,941,276) |
(1,758,677) |
|
Gross Profit |
1,086,566 |
709,964 |
|
Operating Expenses |
|
|
|
Selling |
(205,278) |
(184,481) |
|
Administrative revenue (expenses) |
(260,194) |
577,608 |
|
Other operating revenue (expenses), net |
5,482 |
32,057 |
|
Operating Income Before Shareholdings |
626,576 |
1,135,148 |
|
Equity Result |
2,087 |
1,114 |
|
Earnings Before Financial Results, net |
628,663 |
1,136,262 |
|
Financial, net |
(143,159) |
(101,794) |
|
Exchange gain (loss), net |
483,319 |
(883,966) |
|
Earnings before Income Tax and Social Contribution |
968,823 |
150,502 |
|
Income Tax and Social Contribution |
|
|
|
Current |
(338,989) |
- |
|
Deferred |
(1,045) |
167,676 |
|
Net Income (loss) for the period |
628,789 |
318,178 |
|
Registered common shares ('000) |
683,509 |
683,509 |
|
Earnings per shares - R$ (per share) |
0.92 |
0.47 |
|
Depreciation and Amortization |
(284,656) |
(253,308) |
|
Adjusted EBITDA |
907,837 |
1,357,513 |
|
% over net revenue |
30.0% |
55.0% |
|
Net Operating Revenue Breakdown |
|
R$ '000 |
|
|
1Q16 |
1Q15 |
|
Gross operating revenue |
3,195,908 |
2,592,958 |
|
Water supply - retail |
1,409,269 |
1,092,104 |
|
Water supply - wholesale |
21,443 |
16,357 |
|
Sewage collection and treatment |
1,095,489 |
856,367 |
|
Sewage collection and treatment - wholesale |
6,656 |
7,557 |
|
Construction revenue - water |
428,136 |
304,504 |
|
Construction revenue - sewage |
197,144 |
283,962 |
|
Other services |
37,771 |
32,107 |
|
Gross revenue deductions (Cofins/Pasep) |
(168,066) |
(124,317) |
|
Net operating revenue |
3,027,842 |
2,468,641 |
Balance Sheet
|
Brazilian Corporate Law |
R$ '000 | ||
|
ASSETS |
03/31/2016 |
|
12/31/2015 |
|
Current assets |
|
|
|
|
Cash and cash equivalents |
1,431,876 |
|
1,639,214 |
|
Trade accounts receivable |
1,465,570 |
|
1,326,972 |
|
Accounts receivable from related parties |
150,871 |
|
156,155 |
|
Inventories |
56,714 |
|
64,066 |
|
Restricted cash |
26,559 |
|
29,156 |
|
Recoverable taxes |
15,931 |
|
77,828 |
|
Other accounts receivable |
193,298 |
|
156,942 |
|
Total current assets |
3,340,819 |
|
3,450,333 |
|
|
|
|
|
|
Noncurrent assets |
|
|
|
|
Trade accounts receivable |
163,842 |
|
182,616 |
|
Accounts receivable from related parties |
720,473 |
|
715,952 |
|
Escrow deposits |
82,941 |
|
76,663 |
|
Deferred income tax and social contribution |
127,197 |
|
128,242 |
|
Water National Agency – ANA |
89,913 |
|
88,368 |
|
Other accounts receivable |
141,180 |
|
140,676 |
|
|
|
|
|
|
Investments |
29,907 |
|
28,105 |
|
Investment properties |
56,940 |
|
56,957 |
|
Intangible assets |
28,893,799 |
|
28,513,626 |
|
Property, plant and equipment |
326,581 |
|
325,076 |
|
Total noncurrent assets |
30,632,773 |
|
30,256,281 |
|
|
|
|
|
|
Total assets |
33,973,592 |
|
33,706,614 |
|
|
|
|
|
|
LIABILITIES AND EQUITY |
03/31/2016 |
|
12/31/2015 |
|
Current liabilities |
|
|
|
|
Trade payables and contractors |
198,089 |
|
248,158 |
|
Current portion of long-term loans and financing |
1,474,032 |
|
1,526,262 |
|
Accrued payroll and related charges |
368,587 |
|
347,976 |
|
Taxes and contributions |
314,830 |
|
107,295 |
|
Interest on shareholders' equity payable |
127,441 |
|
127,441 |
|
Provisions |
658,499 |
|
631,890 |
|
Services payable |
482,976 |
|
387,279 |
|
Public-Private Partnership – PPP |
33,806 |
|
33,255 |
|
Program Contract Commitments |
209,875 |
|
228,659 |
|
Other liabilities |
91,086 |
|
102,101 |
|
Total current liabilities |
3,959,221 |
|
3,740,316 |
|
|
|
|
|
|
Noncurrent liabilities |
|
|
|
|
Loans and financing |
10,719,144 |
|
11,595,338 |
|
Deferred Cofins and Pasep |
134,277 |
|
132,921 |
|
Provisions |
493,729 |
|
450,324 |
|
Pension obligations |
2,892,361 |
|
2,832,216 |
|
Public-Private Partnership – PPP |
1,197,122 |
|
1,001,778 |
|
Program Contract Commitments |
87,703 |
|
92,055 |
|
Other liabilities |
144,640 |
|
145,060 |
|
Total noncurrent liabilities |
15,668,976 |
|
16,249,692 |
|
|
|
|
|
|
Total liabilities |
19,628,197 |
|
19,990,008 |
|
|
|
|
|
|
Equity |
|
|
|
|
Capital stock |
10,000,000 |
|
10,000,000 |
|
Earnings reserves |
4,069,988 |
|
4,069,988 |
|
Other comprehensive income |
(353,382) |
|
(353,382) |
|
Accrued earnings |
628,789 |
|
- |
|
Total equity |
14,345,395 |
|
13,716,606 |
|
|
|
|
|
|
Total equity and liabilities |
33,973,592 |
|
33,706,614 |
Cash Flow
|
Brazilian Corporate Law |
R$ '000 | |||
|
|
|
1Q16 |
|
1Q15 |
|
Cash flow from operating activities |
|
| ||
|
Profit before income tax and social contribution |
968,823 |
|
150,502 | |
|
Adjustment for: |
|
| ||
|
Depreciation and amortization |
284,656 |
253,308 | ||
|
Residual value of property, plant and equipment and intangible assets written-off |
339 |
(8,301) | ||
|
Allowance for doubtful accounts |
56,078 |
47,343 | ||
|
Provision and inflation adjustment |
122,301 |
(84,524) | ||
|
Interest calculated on loans and financing payable |
136,821 |
121,043 | ||
|
Inflation adjustment and foreign exchange gains (losses) on loans and financing |
(430,351) |
940,559 | ||
|
Interest and inflation adjustment losses |
9,967 |
6,045 | ||
|
Interest and inflation adjustment gains |
(50,977) |
(14,807) | ||
|
Financial charges from customers |
(67,055) |
(49,035) | ||
|
Margin on intangible assets arising from concession |
(12,894) |
(12,090) | ||
|
Provision for Consent Decree (TAC) |
1,073 |
(43,148) | ||
|
Equity result |
(2,087) |
(1,114) | ||
|
Provision from São Paulo agreement |
97,402 |
68,423 | ||
|
Provision for defined contribution plan |
2,277 |
2,044 | ||
|
Pension obligations |
102,972 |
81,914 | ||
|
Other adjustments |
(6,900) |
(3,563) | ||
|
GESP Agreement |
- |
(696,283) | ||
|
1,212,445 |
|
758,316 | ||
|
Changes in assets |
| |||
|
Trade accounts receivable |
(90,341) |
2,367 | ||
|
Accounts receivable from related parties |
17,534 |
12,556 | ||
|
Inventories |
7,242 |
6,638 | ||
|
Recoverable taxes |
61,897 |
(25,804) | ||
|
Escrow deposits |
9,422 |
(648) | ||
|
Other accounts receivable |
(32,345) |
(19,428) | ||
|
Changes in liabilities |
| |||
|
Trade payables and contractors |
(5,380) |
(11,648) | ||
|
Services received |
(1,705) |
15,434 | ||
|
Accrued payroll and related charges |
19,538 |
25,774 | ||
|
Taxes and contributions payable |
(85,300) |
4,643 | ||
|
Deferred Cofins/Pasep |
1,356 |
(231) | ||
|
Provisions |
(52,287) |
(32,081) | ||
|
Pension obligations |
(42,827) |
(39,927) | ||
|
Other liabilities |
(12,079) |
(8,182) | ||
|
| ||||
|
Cash generated from operations |
1,007,170 |
|
687,779 | |
|
| ||||
|
Interest paid |
(228,369) |
(193,558) | ||
|
Income tax and contribution paid |
(46,154) |
(17,743) | ||
|
|
| |||
|
Net cash generated from operating activities |
732,647 |
|
476,478 | |
|
|
|
| ||
|
Cash flows from investing activities |
|
|
| |
|
Acquisition of intangibles |
(400,978) |
(519,959) | ||
|
Restricted cash |
2,597 |
(2,131) | ||
|
Investment increase |
- |
244 | ||
|
Purchases of tangible assets |
(12,906) |
(8,402) | ||
|
Net cash used in investing activities |
(411,287) |
|
(530,248) | |
|
|
|
| ||
|
Cash flow from financing activities |
|
|
| |
|
Loans and financing |
|
| ||
|
Proceeds from loans |
174,708 |
311,671 | ||
|
Repayments of loans |
(662,193) |
(203,905) | ||
|
Public-Private Partnership – PPP |
(8,111) |
(5,611) | ||
|
Program Contract Commitments |
(33,102) |
(33,405) | ||
|
Net cash generated by (used in) financing activities |
(528,698) |
|
68,750 | |
|
|
|
| ||
|
Cash reduce and cash equivalents |
(207,338) |
|
14,980 | |
|
Represented by: |
||||
|
Cash and cash equivalents at beginning of the period |
1,639,214 |
1,722,991 | ||
|
Cash and cash equivalents at end of the period |
1,431,876 |
1,737,971 | ||
|
Cash reduce and cash equivalents |
(207,338) |
|
14,980 | |
|
Companhia de Saneamento Básico do Estado de São Paulo - SABESP | ||
| By: | /s/ Rui de Britto Álvares Affonso
|
|
|
Name: Rui de Britto Álvares Affonso
Title: Chief Financial Officer and Investor Relations Officer |
||
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.