Earnings Results 3Q14 - Presentation
Transcript of Earnings Results 3Q14 - Presentation
1/18 Grupo
Dickson Esteves Tangerino
CEO
Octávio Fernandes
VP of Operations
Antônio Carlos Gaeta
VP of Business
Márcio Fernandes VP Administrative and Finance
Paulo Bokel
IR and Finance Officer
Tel.: (011) 4197-5410
Fax: (011) 4197-5516
www.dasa3.com.br
TELECONFERENCES Portuguese
Date: 11/11/2014
Time: 10h00 (Brasília)
Tel.: 11 2188-0155
Password: DASA
English
Date: 11/11/2014
Time: 12h00 (Brasília)
Phone.: 1 (412) 317-6776
Password: DASA
DASA ON Bovespa: DASA3
Most recent quotation:
11/10/2014: R$9,83
Average daily trade volume
3Q14:
R$ 0.4 milllion
Market value
R$ 3.1 billion
US$ 1.2 biillion
Free Float: 25.3%
3rd QUARTER
RESULTS 2014
Gross Revenue 3Q14 grows 11.7%
Gross Revenue 3Q14 reaches R$ 800.7 MM
EBITDA Margin 3Q14 of 17.7%
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DISCLAIMER
This document contains forward looking statements that can be identified by words like “hope,” “plan,”
“expect,” “believe,” “seek,” “estimate” and similar words. The information in this presentation
regarding forward looking statements of the Company, including business prospects, and operating,
financial, and growth projections are only predictions based on management expectations regarding
future performance. These estimates are highly dependent on the performance of the Brazilian
economy, industry and international market conditions. Therefore, they are subject to change.
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HIGHLIGHTS AND RECENT FACTS
GROWTH
GROSS REVENUE reached R$ 800.7 million in 3Q14 (+11.7%)
STRONG growth in OUTPATIENT (+14.5%) and LAB TO LAB (+14.9%)
2 LESS BUSINESS DAYS (3.0%) than 3Q13, which 2 were Brazil national team game
13 PSCs REMODELING delivered in 3Q14, 38 in progress and 6 new units
QUALITY
The implementation of a HOSPITAL LAB in the new Hospital das Américas, which will be one of Rio de Janeiro’s most important hospitals and was inaugurated in October
Global launch of Roche`s NEW CONVEYOR BELT at the Central Lab in the Federal District, with capacity expansion and possibility of decentralization
DELBONI INTERNATIONAL SYMPOSIUM had 1000 participants
30 DOCTORS from the Dasa group gave lectures during the Brazilian Congress of Radiology in Rio de Janeiro
RETURN FOR THE SHAREHOLDER
EBITDA of R$128.6 million in 3Q14, 6.5% more than 3Q13, reaching a margin of 17.7%
OPERATING CASH FLOW of R$113.0 million in 3Q14
NET INCOME of R$43.6 million in 3Q14
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GROSS REVENUE (R$ MILLION)
Gross revenue reached R$ 800.7 MILLION in 3Q14, a growth of 11.7%
520.9 596.6
69.2
73.176.5
87.950.2
43.2
3Q143Q13
Outpatient Inpatient Lab to Lab Public Sector
7.0%
10.7%
11.7%
14.9%
14.5%
74.5%
11.0%716.7
72.7%
5.4%-14.0%
800.7
9.1%
9.7%5.7%
475.9 528.6
240.9
272.1
3Q13 3Q14
RID Clinical Analysis
716.7
800.7
11.1%
13.0%
11.7%
66.4%
33.6%
34.0%
66.0%
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GROSS REVENUE | PATIENT SERVICE CENTERS
Strong RID growth
Mix of HIGHER COMPLEXITY (RID) EXAMS AND A HIGHER NUMBER OF EXAMS PER
REQUISITION increase the average requisition price
GROSS REVENUES (R$ MILLION) AVERAGE REVENUE PER REQUISITION (R$) AND
VOLUME (MILLIONS)
305.1 347.6
215.8
249.0
3Q13 3Q14Clinical Analysis RID
58.6%
41.4%
520.9
596.6
41.7%
58.3%
15.4%
14.5%
13.9%
3.5 3.8 3.8 3.5 3.6 3.6 3.9
134.0 133.7 138.9
146.3 148.6152.2 153.9
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
Requisitions Average Requisition Price
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GROSS REVENUE | HOSPITALS
GROSS REVENUES (R$ MILLION) AVERAGE REVENUE PER REQUISITION (R$) AND
VOLUME (MILLIONS)
REQUISITIONS AVERAGE REQUISITIONS PRICE
GROWTH of 5.7%, operating with selectivity of clients
Increase in average ticket with implementation of NEW SERVICES and focus on INCREASING
PROFITABILITY
1.1 1.1 1.0 1.0 1.0 1.1 1.0
56.3 64.7
68.9 68.5 68.6 67.7 69.8
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
Requisitions Average Requisition Price
52.4 57.2
16.815.9
3Q13 3Q14
Clinical Analysis RID
75.8%
24.2%
69.2 73.1
21.7%
78.3%9.2%
5.7%
-5.3%
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5,033 5,024
15.2
17.5
3Q13 3Q14
# of Laboratories Average Revenue/Laboratory (in Th R$)
GROSS REVENUE | LAB-TO-LAB
GROSS REVENUES (R$ MILLION) PERFORMANCE
15.1% increase in REVENUE per laboratory
Focus on GREATER CAPILLARITY and IMPROVING THE MIX OF EXAMS
76.5
87.9
3Q13 3Q14
14.9%
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GROSS REVENUE | PUBLIC HOSPITALS AND CLINICS
Contracts EXPIRATION
Selectivity in the CHOICE OF NEW CUSTOMERS
GROSS REVENUES (R$ MILLION) PERFORMANCE
50.2
43.2
3Q13 3Q14
-14.0%
591 591
84.9 73.1
3Q13 3Q14
# collecting site Revenue per collecting sites
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COSTS
PERSONNEL: impacted by collective bargaining agreement and hiring of new employees
MATERIAL: strong growth of lab-to-lab and image, and less growth of Clinical Analysis
SERVICES AND UTILITIES: doctor fee and expenses from representatives
3Q13 2Q14 3Q14 3Q13 2Q14 3Q14∆ 3Q14 x
3Q13 %
∆ 3Q14 x
2Q14 %Personnel 125.8 138.1 138.5 19.5% 20.1% 19.0% 10.1% 0.3%
Materials 116.2 127.4 127.1 18.0% 18.5% 17.5% 9.4% -0.2%
Services and Utilities 165.2 171.9 186.5 25.6% 25.0% 25.6% 12.9% 8.5%
General 6.6 8.2 9.0 1.0% 1.2% 1.2% 36.5% 8.8%
Cost of Services Cash 413.8 445.6 461.0 64.0% 64.8% 63.3% 11.4% 3.5%
Depreciation and amortization 22.9 26.1 26.7 3.5% 3.8% 3.7% 16.4% 2.2%
Cost of Services 436.7 471.7 487.7 67.6% 68.6% 67.0% 11.7% 3.4%
In R$ Million Variation %% of Net Revenues
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SG&A
GENERAL AND ADMINISTRATIVE: impacted by collective bargaining agreement, hiring of new
employees and provisions for contingencies
3Q13 2Q14 3Q14 3Q13 2Q14 3Q14∆ 3Q14
x 3Q13
∆ 3Q14 x
2Q14 %
General and Administrative 112.0 117.1 128.2 17.3% 17.0% 17.6% 14.5% 9.5%
Profit Sharing Program 7.8 9.9 9.8 1.2% 1.4% 1.4% 25.6% -0.5%
Other Operating Revenues/ Expenses (8.2) (0.2) 0.1 -1.3% 0.0% 0.0% -101.7% -166.4%
Operating Expenses Cash 111.7 126.8 138.2 17.3% 18.4% 19.0% 23.8% 9.0%
Depreciation and Amortization 13.4 13.5 14.6 2.1% 2.0% 2.0% 9.2% 8.2%
Operating Expenses 125.0 140.3 152.8 19.4% 20.4% 21.0% 22.2% 8.9%
In R$ Million % of Net Revenues Variation %
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ACCOUNTING EBITDA (R$ MILLION)
120.7 113.0 112.6 115.0
128.6
18.7%18.0%
17.0% 16.7%17.7%
40,00
60,00
80,00
100,00
120,00
140,00
160,00
00%02%04%06%08%10%12%14%16%18%20%
3Q13 4Q13 1Q14 2Q14 3Q14
Ebitda Ebitda Margin
18.7%17.7%
0.4%0.5% -0.1% -0.2%
-1.7%
EBITDA 3Q13 Personnnel Materials Services andUtilities
General SG&A EBITDA 3Q14
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INCOME TAX
* Withholding tax (current): Originally from financial income and withholding of gross revenue
33.5%
12.5%
34.0%
-0.5%
52,8%
-73.8%
Income Tax Rate permanentsadjustements in
tax books
Income Taxes(Financial
Statements)
Tax Loss/Other GoodwillCompensation
Withholding tax(current)/
Income taxescash*
3Q
14
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RECEIVABLES
Provision for losses due to disallowance and default (% Gross
Revenue ) Average collection period (days)
Provision Rule
91 to 120 days 25%
121 to 180 days 50%
181 to 360 days 75%
More than 361 days 100%
(1) Index coverage = BDP balance/ expired > 120 days
R$ million 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14Accounts receivable 432.4 376.8 448.2 467.2 480.7 452.1 496.6 501.2 532.4
Past due 0-90 87.2 94.8 79.5 80.2 84.0 93.9 114.9 116.0 118.8
Past due 91 - 120 8.3 16.1 14.1 9.6 13.7 13.5 14.6 17.1 19.3
Past due (more than) 120 117.6 119.9 118.8 109.4 91.5 80.2 91.9 79.4 84.2
Provisions (105.5) (109.2) (107.7) (95.0) (77.3) (67.5) (76.6) (69.3) (72.9)
Total Rec. 540.0 498.5 552.9 571.3 592.6 572.2 641.5 644.5 681.8
Coverage Index¹ 89.7% 91.1% 90.7% 86.9% 84.5% 84.2% 83.3% 87.2% 86.6%
84.4 83.8 87.2 85.3 86.2
3Q13 4Q13 1Q14 2Q14 3Q14
2.6%
4.2%
2.3%
3.7%
1.3%
00%
02%
04%
06%
08%
10%
12%
14%
3Q13 4Q13 1Q14 2Q14 3Q14
% Gross Revenue - Provision for losses due to disallowance anddefault
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BALANCE SHEET MANAGEMENT
592.2
(464.2)
(857.7)
(729.7)
DEBT COMPOSITION (R$ million)
Cash and Cash Equivalents
Debt – Short Term
Debt – Long Term
Net Debt*
Operating cash flow is POSITIVE
NET DEBT in a downward trend
(*) Methodology adopted by fiduciary agent
Management Cash Flow (R$ Million) 3Q14Accounting EBITDA 128.6
Operacional working capital (28.2)
Other working capital accounts 41.0
Financial expenses (21.7)
Income tax (6.6)
Operational cash flow 113.0
Capex (51.0)
Free Cash Flow 62.0
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DEBT PROFILE Debt Cost Evolution
Issuance Year Value (R$MM)
Rate
3ª Issuance 2012 250.0 CDI + 0.80% p.a
4ª Issuance 2013 450.0 CDI + 1.15% p.a
2ª Issuance 2011 700.0 CDI + 1.40% p.a.
Term
4 years
5 years
5years
Financial Covenants
Net Debt Profile (3Q14)
R$ Million
Debt Amortization Schedule
R$ Milion
Debentures (2ª and 3ª Issuance) DASA FINANCE
Loans
CDI +
R$ 650.4 MM
89.1%
% Fixed USD
(R$ 1.9 MM)
-0.3% % CDI
R$ 77.2 MM
10.6 %
Fixed BRL
R$ 4.0 MM
0.5%
119.9
231.8
62.0
294.5 224.2
224.4 10.0
28.8
5.1
18.6
17.6
9.0
2.3
2014 2015 CP 2015 LP 2016 2017 2018 > 4 years
Covenants Sep/13 Dec/13 Mar/14 Jun/14 Sep/14
Gross Debt 1,109.3 1,475.1 1,505.0 1,289.1 1,321.9
Cash and Cash Equivalents 252.4 608.9 697.7 497.6 592.2
Net Debt 856.9 866.2 807.3 791.5 729.7
Ebitda (LTM) 404.1 443.6 457.1 461.3 469.1
Net Financial Expenses (LTM) 88.6 86.6 90.2 101.9 94.9
1º) Net Debt / Ebitda <= 2,5 2.1 2.0 1.8 1.7 1.6
2º) Ebitda / Net Financial Expenses >= 2,0 4.6 5.1 5.1 4.5 4.9
Average Cost Sep/13 Dec/13 Mar/14 Jun/14 Sep/14
% CDI 111.0% 111.0% 111.0% 108.8% 108.7%
CDI + 1.2% 1.2% 1.2% 1.2% 1.2%
Fixed BRL 16.1% 17.6% 17.6% 7.8% 7.5%
Fixed USD 2.2% 2.1% 1.9% 1.7% 1.6%
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ROIC (*)
(*) NOPAT LTM/mean(working capital + intangible assets + fixed assets – value for shares Exchange of DASA and MD1)
34% effective rate of Income Tax
Progressive improvement in ROIC
8.3%
10.4% 10.5%10.7% 10.7%
3Q13LTM
4Q13LTM
1Q14LTM
2Q14LTM
3Q14LTM
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CAPEX
3Q14: 6 NEW PSCs, 13 PSCs REFURBISHED
234.0
144.3
41.3 30.2 29.1 34.7 31.4
51.0
2012 2013 1Q13 1Q14 2Q13 2Q14 3Q13 3Q14
Information TechnologyR$ 25,9 MM
Opening and Expansion of
PSCsR$ 44,7 MM
EquipmentR$ 45.2 MM
OtherR$ 0.1 MM
22.3%
39.0%
38.6%
0.1%
YTD
19/18 Grupo
19/18
Q & A
CONFERENCE CALL 3Q14