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.