Ouro Verde Announces 3Q17 and 9M17 Results

Highlights

The Company‘s results reflect directly the strategy for the year, which reflect our debts and to clean up the customer base, focusing on selection of more profitable customers and better margins contracts, in order to maintain our financial solidity, aiming at reducing the levels of financial leverage.

  • Net Operating Revenue, including sales of assets, showed a slight variation, with a decrease of only 3.8% in relation to 9M16, totaling R$696.0 million. Net Operating Revenue was impacted by the 7.8% reduction in the total fleet. This was due to the Company‘s strategy.
  • Adjusted EBITDA of the leasing of heavy machinery and equipment and light vehicle outsourcing in 9M17 totaled R$349.7 million, a decrease of 4.0% compared to 9M16, with an improvement in the EBITDA margin of 0.5% , which closed the period at 64.9%.
  • Backlog revenue from contracts with our clients, which range from two to seven years and have an average length of 5.0 years, totaled R$1,736.0 million on September 30, 2017.
  • Total fleet reached 27,117 units at the end of 9M17. The fleet breakdown in the period achieved 7,936 units of heavy machinery and equipment and 19,181 units of light vehicles.
  • At the end of 9M17, Ouro Verde cash and cash equivalents reached R$230.1 million.
  • Short-term Debt decreased by 14.7 p.p. (changing mix 49.5% in 9M16 to 34.7% in 9M17), due to the focus on liquidity and streching the debt profile, of which, 46.4% is due to FINAME and Leasing.
  • The Company‘s projection is to maintain its financial strength, seeking the increase in operating profitability by reducing costs and expenses and new investment even more selective, thereby reducing its levels of financial leverage. This caution can already be seen in the leverage reduction (net debt/ Adjusted EBITDA trailing 12 months) from 3.01x in 9M16, to 2.89x in 9M17. Adding the revenue from the sale of assets we achieved a leverage of 1.97x.

Click here to see the Earnings Release in Portuguese.

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Curitiba - Paraná - Brazil - CEP 81350-000
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