Ouro Verde Announces 4Q17 and 2017 Results

Ouro Verde records a strong improvement in its EBITDA margin
and a substantial reduction in its leverage

Curitiba/PR, March 12, 2018 - Ouro Verde Locação e Serviço S.A., one of the largest companies in Brazil engaged in heavy equipment and light vehicle fleet outsourcing, announced its financial and operating results for the fourth quarter and year 2017 (4Q17 and 2017).

Highlights

  • In 2017, in spite of the economic crisis that impacted the performance of several sectors in the country, Ouro Verde presented a consistent result. Net Operating Revenue, including the sale of assets, remained stable with a 3.9% decrease compared to 2016, totaling R$ 937.9 million. Net Operating Revenue was impacted by the 5.0% growth of Asset Sales Revenue, partially offset by a reduction of 6.4% of Net Services Revenue.

  • Consolidated Adjusted EBITDA from heavy machinery and equipment leasing and light vehicle outsourcing totaled R$ 455.6 million in 2016, 6.5% lower than 2016, and Adjusted EBITDA margin reached 64.6%.

  • Total fleet reached 25,685 units at the year-end 2017. The fleet breakdown in the period achieved 7,747 units of heavy machinery and equipment and 17,938 units of light vehicles.

  • Backlog revenue from contracts with our clients, which range from two to seven years and have an average length of 4.1 years, totaled R$1,585.1 million on December 31, 2017.

  • At the end of 2017, Ouro Verde cash and cash equivalents reached R$230.1 million and net debt totaled R$1,308.5 million, approximately 43.2% of which from FINAME and Leasing financing lines.

  • The Company‘s projection is to maintain its financial strength, seeking the increase in operating profitability 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 2.98x in 2016, to 2.87x in 2017. Adding the revenue from the sale of assets we achieved a leverage of 1.90x.

  • In the coming quarters, in order to improve the profile of our debt and support the development of our businesses face to a recession environment, Ouro Verde‘s strategy is to issue new debt operations through the local and international capital market, demonstrating focus on strengthening liquidity and lengthening debt profile.

Click here to access the Management Report.

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