Embraer Earnings Results 2nd Quarter 2020
SÃO PAULO, Aug. 5, 2020 /PRNewswire/ -- EMBRAER S.A. (NYSE: ERJ; B3: EMBR3) releases its Second Quarter 2020 Earnings Results.
HIGHLIGHTS
-- Embraer delivered four commercial jets and 13 executive jets (nine light
/ four large) in 2Q20, and the Company's firm order backlog at the end
of 2Q20 was US$ 15.4 billion;
-- Excluding special items, adjusted EBIT and EBITDA were US$ (140.5)
million and US$ (120.4) million, respectively, negatively impacted by
weak Commercial Aviation results, yielding adjusted EBIT margin of
-26.2%% and adjusted EBITDA margin of -22.4%;
-- The 2Q20 results include total net negative non-cash special items of
US$ 202 million: 1) additional negative provisions for expected credit
losses during the Covid-19 pandemic of US$ 16.1 million, 2) an
impairment loss on the Commercial Aviation business unit of US$ 91.1
million, 3) recognition of previous period depreciation and amortization
expense in the Commercial Aviation business of US$ 101.2 million, and 4)
a positive valuation mark to market of US$ 6.5 million on the Company's
stake in Republic Airways shares;
-- 2Q20 adjusted net loss (excluding special items and deferred income tax
and social contribution) was US$ (198.8) million, with Adjusted loss per
ADS of US$ (1.08);
-- Embraer reported Free cash flow of US$ (476.2) million in 2Q20, still
affected by working capital needs in Commercial Aviation, but an
improvement versus the US$ (676.5) million usage of free cash flow
reported in 1Q20, due to several initiatives to reduce investments,
control working capital, and minimize fixed costs;
-- Embraer's liquidity remains solid as the Company finished the quarter
with total cash of US$ 2.0 billion and major debt maturities starting in
2022 onwards. The Company also finalized the terms of contracts for
working capital and export financing with export credit agencies in
Brazil and the United States and private and public banks, adding a
total of up to US$ 700 million to its total liquidity. Disbursements of
these new financing lines are expected to be completed in the third
quarter of 2020 reinforcing Embraer's cash position in the second half
of 2020 and into 2021;
-- 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
---
1Q20
2Q19
2Q20
YTD20
Revenue 633.8 1,378.7 537.2 1,171.0
EBIT (46.9) 26.6 (342.4) (389.3)
EBIT margin % -7.4% 1.9% -63.7% -33.2%
Adjusted EBIT 8.7 26.6 (140.5) (131.8)
Adjusted EBIT margin % 1.4% 1.9% -26.2% -11.3%
EBITDA 9.3 67.0 (221.1) (211.7)
EBITDA margin % 1.5% 4.9% -41.2% -18.1%
Adjusted EBITDA 64.9 67.0 (120.4) (55.4)
Adjusted EBITDA margin % 10.2% 4.9% -22.4% -4.7%
Adjusted net income (Loss) (104.0) (13.9) (198.8) (302.8)
Adjusted earnings (losses) per share - ADS basic (0.5651) (0.0756) (1.0801) (1.645)
Net income (loss) attributable to Embraer Shareholders (292.0) 7.2 (315.3) (607.3)
Earnings (losses) per share - ADS basic (US$) (1.5867) 0.0391 (1.7131) (3.2996)
Adjusted free cash flow (676.5) 1.5 (476.2) (1,152.6)
Net debt (1,331.6) (1,090.3) (1,800.7) (1,800.7)
---
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 2Q20 Results on Wednesday, August 5, 2020 at 10:30 AM (SP) / 9:30 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.
