Indicate by check mark whether the registrant by furnishing the
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Yes ______ No ___X___
CIA. DE SANEAMENTO BÁSICO DO ESTADO DE SÃO PAULO - SABESP
Rui de Britto Álvares Affonso
Chief Financial Officer and Investor Relations Officer
Mario Azevedo de Arruda Sampaio
Head of Capital Markets and Investor Relations
SABESP announces 1Q18 results São Paulo, May 10, 2018 - Companhia de Saneamento Básico do Estado de São Paulo - SABESP (B3: SBSP3; NYSE: SBS), one of the largest water and sewage services providers in the world based on the number of costumers, announces today its 1Q18 results. The Company’s operating and financial information, except when indicated otherwise is presented in Brazilian Reais, in accordance with the Brazilian Corporate Law. All comparisons in this release, unless otherwise stated, refer to the same period of 2017. |
|
SBSP3: R$ 30.73/share
|
1. Financial highlights
R$ million | |||||
1Q18 | 1Q17 | Chg. (R$) | % | ||
Gross operating revenue ¹ | 3,280.8 | 3,029.3 | 251.5 | 8.3 | |
Construction revenue | 647.2 | 722.9 | (75.7) | (10.5) | |
COFINS and PASEP and TRCF taxes ² | (228.4) | (193.4) | (35.0) | 18.1 | |
(=) | Net operating revenue | 3,699.6 | 3,558.8 | 140.8 | 4.0 |
Costs and expenses | (1,998.7) | (1,832.0) | (166.7) | 9.1 | |
Construction costs | (632.7) | (707.2) | 74.5 | (10.5) | |
Equity result | 2.8 | 1.8 | 1.0 | 55.6 | |
Other operating revenue (expenses), net | 11.5 | 10.6 | 0.9 | 8.5 | |
(=) | Earnings before financial result, income tax and social contribution | 1,082.5 | 1,032.0 | 50.5 | 4.9 |
Financial result | (193.9) | 3.8 | (197.7) | (5,202.6) | |
(=) | Earnings before income tax and social contribution | 888.6 | 1,035.8 | (147.2) | (14.2) |
Income tax and social contribution | (308.2) | (361.4) | 53.2 | (14.7) | |
(=) | Net income | 580.4 | 674.4 | (94.0) | (13.9) |
Earnings per share* (R$) | 0.85 | 0.99 | |||
¹ Includes Revenue from Regulatory, Control and Inspection Fee (TRCF - Taxa de Regulação, Controle e Fiscalização), in the amount of R$ 15.5 million. | |||||
² Includes TRCF transfers in the amount of R$ 13.5 million. | |||||
* Total shares = 683,509,869 |
Adjusted EBITDA Reconciliation (Non-accounting measures)
R$ million | |||||
1Q18 | 1Q17 | Chg. (R$) | % | ||
Net income | 580.4 | 674.4 | (94.0) | (13.9) | |
Income tax and social contribution | 308.2 | 361.4 | (53.2) | (14.7) | |
Financial result | 193.9 | (3.8) | 197.7 | (5,202.6) | |
Other operating revenues (expenses), net | (11.5) | (10.6) | (0.9) | 8.5 | |
(=) | Adjusted EBIT* | 1,071.0 | 1,021.4 | 49.6 | 4.9 |
Depreciation and amortization | 328.0 | 332.0 | (4.0) | (1.2) | |
(=) | Adjusted EBITDA ** | 1,399.0 | 1,353.4 | 45.6 | 3.4 |
(%) Adjusted EBITDA margin | 37.8 | 38.0 | |||
* ADJUSTED EBIT is net income before: (i) other operating revenues / expenses, net; (ii) financial result; and (iii) income tax and social contribution. | |||||
** Adjusted EBITDA is net income before: (i) depreciation and amortization expenses; (ii) income tax and social contribution; (iii) financial result; and (iv) other operating revenues / expenses, net. | |||||
* Adjusted EBIT is net income before: (i) other operating revenues / expenses, net; (ii) financial result; and (iii) income tax and social contribution.
** Adjusted EBITDA is net income before: (i) depreciation and amortization expenses; (ii) income tax and social contribution; (iii) financial result; and (iv) other operating revenues / expenses, net.
In 1Q18, net operating revenue, which considers construction revenue, totaled R$ 3,699.6 million, a growth of 4% over the same period of last year.
Costs and expenses, which include construction costs, totaled R$ 2,631.4 million, 3.6% up on 1Q17.
Adjusted EBIT, in the amount of R$ 1,071.0 million, increased 4.9% when compared to the R$ 1,021.4 million reported in 1Q17.
Adjusted EBITDA, in the amount of R$ 1,399.0 million, increased 3.4% when compared to the R$ 1,353.4 million reported in 1Q17 (R$ 5,314.8 million in the last 12 months).
Adjusted EBITDA margin in 1Q18 was 37.8%, against 38.0% in 1Q17 (36.0% in the last 12 months).
Excluding the effects of revenue and construction costs, adjusted EBITDA margin resulted in 45.4% in 1Q18 (47.2% in 1Q17 and 44.9% in the last 12 months).
In 1Q18 the company recorded a net income of R$ 580.4 million, compared to a net income of R$ 674.4 million in 1Q17
Page 2 of 12
2. Gross operating revenue
The gross operating revenue related to the sanitation services, in the amount of R$ 3,280.8 million, which does not consider construction revenue, increased by R$ 251.5 million or 8.3%, when compared to R$ 3,029.3 million in 1Q17.
The main factors that led to this increase were:
· Tariff repositioning index of 7.9% since November 2017; and
· 2.1% increase in total billed volume, 2.1% in water and 2.0% in sewage.
The increase caused by the above-mentioned facts was offset by the recognition of higher estimated losses on wholesale revenue in 1Q18, in the amount of R$ 36.1 million, due to lower payment received in the period, mainly from the municipality of Guarulhos.
3. Construction revenue
Construction revenue decreased by R$ 75.7 million or 10.5%, when compared to the previous year. The variation is mainly due to the lower investments in the municipalities served by the Company.
4. Billed volume
The tables below show the water and sewage billed volume in quarterly terms, per customer category and region.
WATER AND SEWAGE BILLED VOLUME(1) PER CUSTOMER CATEGORY - million m3 | |||||||||
Water | Sewage | Water + Sewage | |||||||
Category | 1Q18 | 1Q17 | % | 1Q18 | 1Q17 | % | 1Q18 | 1Q17 | % |
Residential | 406.8 | 398.9 | 2.0 | 346.5 | 338.1 | 2.5 | 753.3 | 737.0 | 2.2 |
Commercial | 42.0 | 41.5 | 1.2 | 40.0 | 39.5 | 1.3 | 82.0 | 81.0 | 1.2 |
Industrial | 7.8 | 7.8 | - | 9.7 | 9.3 | 4.3 | 17.5 | 17.1 | 2.3 |
Public | 9.7 | 9.9 | (2.0) | 8.7 | 8.7 | - | 18.4 | 18.6 | (1.1) |
Total retail | 466.3 | 458.1 | 1.8 | 404.9 | 395.6 | 2.4 | 871.2 | 853.7 | 2.0 |
Wholesale (3) | 64.7 | 61.9 | 4.5 | 7.7 | 9.0 | (14.4) | 72.4 | 70.9 | 2.1 |
Total | 531.0 | 520.0 | 2.1 | 412.6 | 404.6 | 2.0 | 943.6 | 924.6 | 2.1 |
WATER AND SEWAGE BILLED VOLUME(1) PER REGION - million m3 | |||||||||
Water | Sewage | Water + Sewage | |||||||
Region | 1Q18 | 1Q17 | % | 1Q18 | 1Q17 | % | 1Q18 | 1Q17 | % |
Metropolitan | 299.7 | 292.9 | 2.3 | 260.7 | 254.0 | 2.6 | 560.4 | 546.9 | 2.5 |
Regional (2) | 166.6 | 165.2 | 0.8 | 144.2 | 141.6 | 1.8 | 310.8 | 306.8 | 1.3 |
Total retail | 466.3 | 458.1 | 1.8 | 404.9 | 395.6 | 2.4 | 871.2 | 853.7 | 2.0 |
Wholesale (3) | 64.7 | 61.9 | 4.5 | 7.7 | 9.0 | (14.4) | 72.4 | 70.9 | 2.1 |
Total | 531.0 | 520.0 | 2.1 | 412.6 | 404.6 | 2.0 | 943.6 | 924.6 | 2.1 |
(1) Unaudited | |||||||||
(2) Including coastal and interior region | |||||||||
(3) Reused water volume and non-domestic sewage are included in |
Page 3 of 12
5. Costs, administrative & selling expenses and construction costs
Costs, administrative and selling expenses and construction costs increased by R$ 92.2 million in 1Q18 (3.6%). Excluding construction costs, there was an increase of R$ 166.7 million (9.1%).
As a percentage of net revenue, costs, administrative and selling expenses and construction costs represented 71.1% in 1Q18, against 71.3% in 1Q17.
R$ million | ||||
1Q18 | 1Q17 | Chg. (R$) | % | |
Salaries and payroll charges and Pension plan obligations |
630.0 | 588.4 | 41.6 | 7.1 |
General supplies |
55.0 | 36.0 | 19.0 | 52.8 |
Treatment supplies |
75.9 | 71.3 | 4.6 | 6.5 |
Services |
377.1 | 282.8 | 94.3 | 33.3 |
Electricity |
221.9 | 199.7 | 22.2 | 11.1 |
General expenses |
246.2 | 209.9 | 36.3 | 17.3 |
Tax expenses |
16.0 | 25.8 | (9.8) | (38.0) |
Sub-total |
1,622.1 | 1,413.9 | 208.2 | 14.7 |
Depreciation and amortization |
328.0 | 332.0 | (4.0) | (1.2) |
Allowance for doubtful accounts |
48.6 | 86.1 | (37.5) | (43.6) |
Sub-total |
376.6 | 418.1 | (41.5) | (9.9) |
Costs, administrative and selling expenses |
1,998.7 | 1,832.0 | 166.7 | 9.1 |
Construction costs |
632.7 | 707.2 | (74.5) | (10.5) |
Costs, adm & selling expenses and construction costs |
2,631.4 | 2,539.2 | 92.2 | 3.6 |
% of net revenue |
71.1 | 71.3 |
5.1. Salaries and payroll charges and Pension plan obligations
In 1Q18, there was an increase of R$ 41.6 million or 7.1%, chiefly due to the following factors:
· Increase of R$ 22.2 million, mainly due to the salary increase of 3.71%, in May 2017 and the application of 1.7% referring to the Carrier and Salary Plan, in February 2018;
· Increase of R$ 7.4 million in provision referring to TAC (Conduct Adjustment Term) of retirees;
· Increase of R$ 5.7 million in overtime expenses; and
· Increase of R$ 4.7 million in health care.
5.2. General Supplies
Increase of R$ 19.0 million or 52.8%, due to the following factors:
· Increase of R$ 8.1 million, resulting from the greater application of materials for maintenance in networks and connections of water and sewage; and
· Greater application of materials for conservation of properties, furniture and equipment, in the amount of R$ 6.7 million.
Page 4 of 12
5.3 Services
Growth of R$ 94.3 million or 33.3%, due to the following factors:
· Higher estimate of expenses, in the amount of R$ 47.5 million, due to an increase in several services contracted in 1Q18, mainly in water and sewage connections and network maintenance;
· Increase of R$ 15.8 million in advertising campaigns; and
· Increase in expenses with credit recovery, in the amount of R$ 7.3 million.
5.4. Electricity
Electricity expenses totaled R$ 221.9 million in 1Q18, an increase of R$ 22.2 million or 11.1% compared to R$ 199.7 million in 1Q17. This variation was mainly due to:
· Average increase of 0.8% in the free market tariffs (ACL - Ambiente de Contratação Livre), with an increase of 13.4% in consumption;
· Average reduction of 9.9% in the grid market tariff (TUSD - Tarifas de Uso do Sistema de Distribuição), with a 12.3% increase in consumption; and
· Average increase of 1.7% in the regulated market tariffs (ACR - Ambiente de Contratação Regulada), with a decrease of 6.9% in consumption.
In 1Q18, the ACL accounted for 36.2% of the total electricity consumed by the Company, TUSD accounted for 35.9% and ACR represented 27.9% of that amount.
5.5. General expenses
Increase of R$ 36.3 million or 17.3%, totaling R$ 246.2 million in 1Q18, against R$ 209.9 million in 1Q17, due to the following factors:
· Higher provision for transfer to the Municipal Fund of Environmental Sanitation and Infrastructure, in the amount of R$ 17.2 million, due to the increase in revenue obtained with the municipality of São Paulo;
· Increase in expenses related to water use, in the amount of R$ 4.9 million; and
· Greater provisioning for lawsuits in 1Q18, in the amount of R$ 4.1 million.
5.6. Allowance for doubtful accounts
Decrease of R$ 37.5 million, mainly due to higher recovery of unpaid amounts in 1Q18.
Page 5 of 12
6. Financial result
R$ million | ||||
1Q18 | 1Q17 | Chg. R$ | % | |
Financial expenses, net of income | (67.2) | (68.9) | 1.7 | (2.5) |
Net monetary and exchange variation | (126.7) | 72.7 | (199.4) | (274.3) |
Financial result | (193.9) | 3.8 | (197.7) | (5,202.6) |
6.1. Financial expenses, net of income
R$ million | ||||
1Q18 | 1Q17 | Chg. R$ | % | |
Financial expenses | ||||
Interest and charges on international loans and financing | (78.2) | (64.8) | (13.4) | 20.7 |
Interest and charges on domestic loans and financing | (36.6) | (22.2) | (14.4) | 64.9 |
Other financial expenses | (14.9) | (42.1) | 27.2 | (64.6) |
Total financial expenses | (129.7) | (129.1) | (0.6) | 0.5 |
Financial income | 62.5 | 60.2 | 2.3 | 3.8 |
Financial expenses net of income | (67.2) | (68.9) | 1.7 | (2.5) |
Decrease of R$ 1.7 million, mainly due to the following factors:
· Increase of R$ 13.4 million in interest and charges on domestic loans and financing, mainly due to the lower capitalization of interest in works in progress in 1Q18, when compared to the capitalization recorded in 1Q17;
· Increase of R$ 14.4 million in interest and charges on international loans and financing, mainly due to the appreciation of the US dollar against the real in 1Q18, compared to the devaluation in 1Q17 (0.5% and -2.8% respectively), and higher appreciation of the yen against the real in 1Q18, when compared to the appreciation in 1Q17 (6.3% and 1.9%, respectively); and
· Decrease of R$ 27.2 million in other financial expenses, largely due to the lower provisioning of interest on lawsuits in 1Q18.
6.2. Monetary and exchange variation, net
R$ million | ||||
1Q18 | 1Q17 | Chg. R$ | % | |
Monetary variation on loans and financing | (19.6) | (21.8) | 2.2 | (10.1) |
Currency exchange variation on loans and financing | (112.0) | 89.3 | (201.3) | (225.4) |
Other monetary variations | (9.7) | (15.5) | 5.8 | (37.4) |
Monetary/exchange rate variation on liabilities | (141.3) | 52.0 | (193.3) | (371.7) |
Monetary/exchange rate variation on assets | 14.6 | 20.7 | (6.1) | (29.5) |
Monetary/exchange rate variation, net | (126.7) | 72.7 | (199.4) | (274.3) |
The effect on the net monetary/exchange rate variation 1Q18 was R$ 199.4 million higher than in 1Q17, with highlight to the R$ 201.3 million increase in the exchange rate variation on loans and financing, due to the appreciation of the dollar against the real in 1Q18, compared to the devaluation in 1Q17 (0.5% and -2.8%, respectively), and higher appreciation of the yen against the real in 1Q18, when compared to the appreciation registered in 1Q17 (6.3% and 1.9%, respectively).
Page 6 of 12
7. Income tax and Social contribution
The Company recorded a decrease of R$ 53.2 million, due to the lower taxable result presented in 1Q18, mainly resulting from the appreciation of the US dollar against the real, compared to the devaluation in 1Q17 and the higher appreciation of the yen against the real, when compared to the appreciation registered in 1Q17.
8. Indicators
8.1. Operating
Operating indicators * | 1Q18 | 1Q17 | % |
Water connections (1) | 8,908 | 8,703 | 2.4 |
Sewage connections (1) | 7,345 | 7,140 | 2.9 |
Population directly served - water (2) | 24.9 | 24.8 | 0.4 |
Population directly served - sewage (2) | 21.6 | 21.3 | 1.4 |
Number of Employees | 13,610 | 14,086 | (3.4) |
Water volume produced in the quarter (3) | 702 | 700 | 0.3 |
IPM - Measured water loss (%) | 30.4 | 31.5 | (3.5) |
IPDt (liters/connection x day) | 298 | 308 | (3.2) |
(1) Total connections, active and inactive, in thousand units at the end of the period | |||
(2) In million inhabitants, at the end of the period. Not including wholesale | |||
(3) In millions of cubic meters | |||
(*) Unaudited |
8.2. Financial
Economic Variables at the close of the quarter* | 1Q18 | 1Q17 |
Amplified Consumer Price Index (%)(1) | 0.70 | 0.96 |
National Consumer Price Index(1) | 0.48 | 0.98 |
Consumer Price Index (1) | 0.04 | 0.38 |
Referential Rate (1) | 0.0000 | 0.3525 |
Interbank Deposit Certificate (%)(2) | 6.39 | 12.13 |
US DOLAR (R$)(3) | 3.3238 | 3.1684 |
YEN (R$)(3) | 0.03126 | 0.02844 |
(1) Year-to-date in % | ||
(2) Last day average | ||
(3) R$/ sell rate previous day price | ||
(*) Unaudited |
Page 7 of 12
9. Loans and financing
R$ million | ||||||||
DEBT PROFILE | ||||||||
|
|
|
|
|
|
|
2024 Onwards |
Total |
Local currency | ||||||||
Caixa Econômica Federal | 52,063 | 71,159 | 73,743 | 77,573 | 81,709 | 73,856 | 832,949 | 1,263,052 |
Debentures | 366,754 | 1,029,909 | 579,963 | 476,635 | 556,106 | 359,749 | 347,850 | 3,716,966 |
BNDES | 78,478 | 117,441 | 99,282 | 98,833 | 98,833 | 93,145 | 505,791 | 1,091,803 |
Leasing | 13,013 | 32,900 | 34,553 | 36,350 | 38,304 | 41,035 | 369,999 | 566,154 |
Others | 1,266 | 1,373 | 1,373 | 1,373 | 1,373 | 1,373 | 2,628 | 10,759 |
Interest and other charges | 48,227 | 11,878 | - | - | - | - | - | 60,105 |
Total Local Currency | 559,801 | 1,264,660 | 788,914 | 690,764 | 776,325 | 569,158 | 2,059,217 | 6,708,839 |
Foreign currency | ||||||||
IADB | 59,111 | 118,223 | 118,223 | 118,223 | 118,223 | 118,224 | 1,061,600 | 1,711,827 |
IBRD | - | 10,104 | 20,208 | 20,208 | 20,208 | 20,209 | 212,175 | 303,112 |
Deutsche Bank 350 | 249,285 | 244,432 | - | - | - | - | - | 493,717 |
Eurobond | - | - | 1,161,066 | - | - | - | - | 1,161,066 |
JICA | 36,970 | 122,884 | 122,884 | 122,884 | 122,884 | 122,884 | 1,138,558 | 1,789,948 |
IDB 1983AB | 79,504 | 58,806 | 57,632 | 25,568 | 25,568 | 23,750 | - | 270,828 |
Interest and other charges | 43,139 | - | - | - | - | - | - | 43,139 |
Total in foreign currency | 468,009 | 554,449 | 1,480,013 | 286,883 | 286,883 | 285,067 | 2,412,333 | 5,773,637 |
Total | 1,027,810 | 1,819,109 | 2,268,927 | 977,647 | 1,063,208 | 854,225 | 4,471,550 | 12,482,476 |
10. Capex
1Q18 investments totaled R$ 689.2 million, including R$ 172.9 million related to the São Lourenço PPP.
11. Conference calls
In English May 15, 2018 - Tuesday 01:00 pm US EST / 02:00 pm (Brasília) Dial in: + 1 (412) 317-5486 Conference ID: Sabesp
Replay available for 7 days Dial in: +1 (412) 317-0088 Replay ID: 10116593
Click here for the webcast |
In Portuguese May 15, 2018 - Tuesday 9:30 am US EST / 10:30 am (Brasília) Dial in: +55 (11) 2188-0155 Conference ID: Sabesp
Replay available for 7 days Dial in: +55 (11) 3127-4999 Replay ID: 43846523
Click here for the webcast |
Page 8 of 12
For more information, please contact:
Mario Arruda Sampaio
Head of Capital Markets and Investor Relations
Phone.(55 11) 3388-8664
E-mail: maasampaio@sabesp.com.br
Angela Beatriz Airoldi
Investor Relations Manager
Phone.(55 11) 3388-8793
E-mail: abairoldi@sabesp.com.br
Statements contained in this press release may contain information that is forward-looking and reflects management's current view and estimates of future economic circumstances, industry conditions, SABESP performance, and financial results. Any statements, expectations, capabilities, plans and assumptions contained in this press release that do not describe historical facts, such as statements regarding the declaration or payment of dividends, the direction of future operations, the implementation of principal operating and financing strategies and capital expenditure plans, the factors or trends affecting financial condition, liquidity or results of operations are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. There is no guarantee that these results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.
Page 9 of 12
Income Statement
Brazilian Corporate Law | R$ '000 | |
1Q18 | 1Q17 | |
Net Operating Income | 3,699,668 | 3,558,825 |
Operating Costs | (2,139,237) | (2,061,416) |
Gross Profit | 1,560,431 | 1,497,409 |
Operating Expenses | ||
Selling | (224,155) | (238,680) |
Administrative revenue (expenses) | (267,980) | (239,134) |
Other operating revenue (expenses), net | 11,492 | 10,564 |
Operating Income Before Shareholdings | 1,079,788 | 1,030,159 |
Equity Result | 2,817 | 1,870 |
Earnings Before Financial Results, net | 1,082,605 | 1,032,029 |
Financial, net | (81,784) | (85,869) |
Exchange gain (loss), net | (112,149) | 89,667 |
Earnings before Income Tax and Social Contribution | 888,672 | 1,035,827 |
Income Tax and Social Contribution | ||
Current | (325,870) | (350,440) |
Deferred | 17,629 | (11,025) |
Net Income for the period | 580,431 | 674,362 |
Registered common shares ('000) | 683,509 | 683,509 |
Earnings per shares - R$ (per share) | 0.85 | 0.99 |
Depreciation and Amortization | (327,899) | (331,948) |
Adjusted EBITDA | 1,399,012 | 1,353,413 |
% over net revenue | 37.8% | 38.0% |
Page 10 of 12
Balance Sheet
Brazilian Corporate Law | R$ '000 | |
ASSETS | 03/31/2018 | 12/31/2017 |
Current assets | ||
Cash and cash equivalents | 2,963,862 | 2,283,047 |
Trade receivables | 1,762,793 | 1,672,595 |
Related parties and transactions | 166,053 | 180,773 |
Inventories | 75,492 | 85,671 |
Restricted cash | 14,064 | 18,822 |
Currrent recoverable taxes | 190,516 | 276,585 |
Other receivables | 167,897 | 56,592 |
Total current assets | 5,340,677 | 4,574,085 |
Noncurrent assets | ||
Trade receivables | 217,271 | 215,910 |
Related parties and transactions | 619,465 | 634,387 |
Escrow deposits | 147,646 | 122,686 |
Water National Agency ANA | 71,552 | 70,487 |
Other receivables | 112,774 | 113,123 |
Equity investments | 40,404 | 36,932 |
Investment properties | 57,640 | 57,652 |
Intangible assets | 33,830,713 | 33,466,132 |
Property, plant and equipment | 247,472 | 255,050 |
Total noncurrent assets | 35,344,937 | 34,972,359 |
Total assets | 40,685,614 | 39,546,444 |
LIABILITIES AND EQUITY | 03/31/2018 | 12/31/2017 |
Current liabilities | ||
Trade payables | 310,685 | 344,947 |
Borrowings and financing | 1,876,775 | 1,746,755 |
Accrued payroll and related charges | 633,146 | 588,073 |
Taxes and contributions | 126,977 | 183,965 |
Dividends and interest on capital payable | 598,612 | 598,612 |
Provisions | 584,948 | 607,959 |
Services payable | 515,852 | 408,275 |
Public-Private Partnership PPP | 76,151 | 60,007 |
Program Contract Commitments | 138,591 | 128,802 |
Other liabilities | 106,988 | 104,485 |
Total current liabilities | 4,968,725 | 4,771,880 |
Noncurrent liabilities | ||
Borrowings and financing | 10,605,701 | 10,354,211 |
Deferred income tax and social contribution | 19,125 | 36,754 |
Deferred Cofins and Pasep | 128,769 | 130,182 |
Provisions | 449,172 | 470,245 |
Pension obligations | 2,939,958 | 2,932,338 |
Public-Private Partnership PPP | 3,155,812 | 3,011,409 |
Program Contract Commitments | 105,201 | 110,698 |
Other liabilities | 219,711 | 215,718 |
Total noncurrent liabilities | 17,623,449 | 17,261,555 |
Total liabilities | 22,592,174 | 22,033,435 |
Equity | ||
Paid-up capital | 10,000,000 | 10,000,000 |
Profit reserve | 8,051,110 | 8,051,110 |
Other comprehensive income | (538,101) | (538,101) |
Retained earnings | 580,431 | - |
Total equity | 18,093,440 | 17,513,009 |
Total equity and liabilities | 40,685,614 | 39,546,444 |
Page 11 of 12
Cash Flow
Brazilian Corporate Law | R$ '000 | |
Jan-Mar | Jan-Mar | |
2018 | 2017 | |
Cash flow from operating activities | ||
Profit before income tax and social contribution | 888,672 | 1,035,827 |
Adjustment for: | ||
Depreciation and amortization | 327,899 | 331,948 |
Residual value of property, plant and equipment and intangible assets written-off | 4,282 | 11,314 |
Allowance for doubtful accounts | 48,631 | 86,136 |
Provision and inflation adjustment | 36,513 | 62,657 |
Interest calculated on loans and financing payable | 119,242 | 90,640 |
Inflation adjustment and foreign exchange gains (losses) on loans and financing | 131,664 | (67,648) |
Interest and inflation adjustment losses | 8,099 | 2,950 |
Interest and inflation adjustment gains | (3,929) | (10,569) |
Financial charges from customers | (60,324) | (60,716) |
Margin on intangible assets arising from concession | (14,551) | (15,699) |
Provision for Consent Decree (TAC) | 7,387 | 2,314 |
Equity result | (2,817) | (1,870) |
Provision from São Paulo agreement | - | 104,360 |
Pension obligations | 59,948 | 77,268 |
Other adjustments | 6,303 | (12,295) |
1,557,019 | 1,636,617 | |
Changes in assets | ||
Trade accounts receivable | (77,646) | (49,660) |
Accounts receivable from related parties | 28,282 | 16,050 |
Inventories | 10,179 | (6,047) |
Recoverable taxes | 86,069 | 28,438 |
Escrow deposits | (21,891) | 16,047 |
Other accounts receivable | (112,021) | (71,154) |
Changes in liabilities | ||
Trade payables and contractors | (244,286) | (29,084) |
Services payable | 107,577 | (127,199) |
Accrued payroll and related charges | 37,686 | (5,959) |
Taxes and contributions payable | (160,978) | (78,771) |
Deferred Cofins/Pasep | (1,413) | (300) |
Provisions | (80,597) | (49,923) |
Pension obligations | (52,328) | (54,489) |
Other liabilities | 4,304 | 24,542 |
Cash generated from operations | 1,079,956 | 1,249,108 |
Interest paid | (196,060) | (213,824) |
Income tax and contribution paid | (221,880) | (271,672) |
Net cash generated from operating activities | 662,016 | 763,612 |
Cash flows from investing activities | ||
Acquisition of intangibles | (229,976) | (520,886) |
Restricted cash | 4,758 | 2,079 |
Purchases of tangible assets | (2,786) | (10,601) |
(655) | - | |
Net cash used in investing activities | (228,659) | (529,408) |
Cash flow from financing activities | ||
Loans and financing | ||
Proceeds from loans |
943,048 | 275,208 |
Repayments of loans |
(681,698) | (403,698) |
Public-Private Partnership PPP | (13,892) | (7,741) |
Program Contract Commitments | - | (372) |
Net cash generated by (used in) financing activities | 247,458 | (136,603) |
Cash reduce and cash equivalents | 680,815 | 97,601 |
Represented by: | ||
Cash and cash equivalents at beginning of the year | 2,283,047 | 1,886,221 |
Cash and cash equivalents at end of the year | 2,963,862 | 1,983,822 |
Cash reduce and cash equivalents | 680,815 | 97,601 |
Page 12 of 12
Companhia de Saneamento Básico do Estado de São Paulo - SABESP | ||
By: | /s/ Rui de Britto Álvares Affonso
|
|
Name: Rui de Britto Álvares Affonso
Title: Chief Financial Officer and Investor Relations Officer |
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.