Embraer Earnings Results: 3rd Quarter 2020
SÃO PAULO, Nov. 10, 2020 /PRNewswire/ -- EMBRAER S.A. (NYSE: ERJ; B3: EMBR3) releases its Third Quarter 2020 Earnings Results.
HIGHLIGHTS
-- Embraer delivered 7 commercial jets and 21 executive jets (19 light / 2
large) in 3Q20, and the Company's firm order backlog at the end of the
quarter was US$ 15.1 billion;
-- Excluding special items, adjusted EBIT and EBITDA were US$ (45.3)
million and US$ (0.6) million, respectively, negatively impacted by weak
Commercial Aviation results, yielding adjusted EBIT margin of -6.0% and
adjusted EBITDA margin of -0.1%;
-- The 3Q20 results include total net positive special items of US$ 7.6
million: 1) restructuring expenses of US$ 54.0 million related to the
voluntary and non-voluntary dismissal programs announced in September,
2) negative provisions for expected credit losses during the Covid-19
pandemic of US$ 13.0 million, 3) reversal of previous impairment in the
Executive Jets business which positively impacted results by US$ 15.9
million, and 4) reversal of previous impairment in the Commercial
Aviation business which positively impacted results by US$ 58.7 million;
-- Adjusted net loss (excluding special items and deferred income tax and
social contribution) in 3Q20 was US$ (148.3) million, with Adjusted loss
per ADS of US$ (0.81);
-- Embraer reported Free cash flow of US$ (566.5) million in 3Q20, still
affected by working capital increases (particularly higher inventories)
largely in Commercial Aviation;
-- Embraer's liquidity remains solid as the Company finished the quarter
with total cash of US$ 2.2 billion, higher than the US$ 2.0 billion in
cash at the end of 2Q20 despite the negative free cash flow in 3Q20. The
Company successfully issued US$ 750 million in bonds with maturity in
2028, using US$ 250 million of the proceeds to prepay portions of its
2022 and 2023 bonds, while adding US$ 500 million in liquidity.
Embraer's liability management during 3Q20 resulted in the average debt
maturity increasing from 3.8 to 4.5 years;
-- Due to continued uncertainty related to the COVID-19 pandemic, financial
and deliveries guidance for the Company's 2020 results remains suspended
at this point.
MAIN FINANCIAL INDICATORS
in millions of U.S dollars, except % and earnings per
share data
2Q20
3Q19
3Q20
YTD20
Revenue 537.2 1,175.6 758.7 1,929.7
EBIT (342.4) (20.8) (37.7) (427.1)
EBIT margin % -63.7% -1.8% -5.0% -22.1%
Adjusted EBIT (140.5) (20.8) (45.3) (177.2)
Adjusted EBIT margin % -26.2% -1.8% -6.0% -9.2%
EBITDA (221.1) 18.2 (0.6) (212.4)
EBITDA margin % -41.2% 1.5% -0.1% -11.0%
Adjusted EBITDA (120.4) 18.2 (8.2) (63.7)
Adjusted EBITDA margin % -22.4% 1.5% -1.1% -3.3%
Adjusted net income (Loss) (2) (198.8) (48.4) (148.3) (451.1)
Adjusted earnings (losses) per share - ADS basic (1.0801) (0.2631) (0.8058) (2.4510)
Net income (loss) attributable to Embraer Shareholders (315.3) (77.2) (121.2) (728.6)
Earnings (losses) per share - ADS basic (US$) (1.7131) (0.4197) (0.6585) (3.9587)
Adjusted free cash flow (472.2) (257.4) (566.5) (1,715.2)
Net debt (1,800.7) (1,347.2) (2,365.1) (2,365.1)
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For additional information, please check the full document on our website ri.embraer.com.br
INVESTOR RELATIONS
Eduardo Couto, Chris Thornsberry, Caio Pinez, Nádia Santos, and Viviane Pinheiro.
(+55 11) 3040-6874
investor.relations@embraer.com.br
ri.embraer.com.br
CONFERENCE CALL INFORMATION
Embraer will host a conference call to present its 3Q20 Results on Tuesday, November 10, 2020 at 11:00 AM (SP) / 9:00 AM (NY). The conference call will also be broadcast live over the web at ri.embraer.com.br
Conference ID: EMBRAER
Telephones USA / Canada: +1 (412) 717-9627 / +1 (844) 204-8942
Telephones U.K.: +44 20 3795-9972
Telephones Brazil: +55 (11) 4210-1803 / +55 (11) 3181-8565
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SOURCE Embraer S.A.
