Embraer Earnings Results 1st Quarter 2020

01/06/2020 04:00

SÃO PAULO, June 1, 2020 /PRNewswire/ -- EMBRAER S.A. (NYSE: ERJ; B3: EMBR3) releases its First Quarter Earnings Results.

HIGHLIGHTS

Embraer delivered five commercial jets and nine executive jets (five light / four large) in 1Q20, and the Company's firm order backlog at the end of 1Q20 was US$ 15.9 billion;
EBIT and EBITDA in 1Q20 as reported were US$ (46.9) million and US$ 9.3 million, respectively, yielding EBIT margin of -7.4% and EBITDA margin of 1.5%. This compares to EBIT of US$ (15.2) million (-1.8% EBIT margin) and EBITDA of US$ 30.9 million (3.8% EBITDA margin) in 1Q19.
The 1Q20 results include special items due to the impacts of COVID-19: 1) US$ 22.2 million in negative fair value changes on the Company's stake in Republic Airways Holdings, and 2) US$ 33.4 million in bad debt provisions on accounts receivables, as the Company adopted a more conservative approach in the context of the COVID-19 pandemic;
Adjusted EBIT and EBITDA were US$ 8.7 million and US$ 64.9 million, respectively, yielding adjusted EBIT margin of 1.4% and adjusted EBITDA margin of 10.2%;
1Q20 Net loss attributable to Embraer shareholders and Loss per ADS were US$ (292.0) million and US$ (1.59), respectively. Adjusted net loss (excluding special items and deferred income tax and social contribution) for 1Q20 was US$ (104.0) million, with Adjusted loss per ADS of US$ (0.57). The adjusted net loss in 1Q19 was US$ (61.8) million, for an adjusted loss per ADS of US$ (0.34) in the quarter;
Embraer reported Free cash flow of US$ (676.5) million in 1Q20, in line with free cash flow of US$ (665.3) million reported in 1Q19, which is historically negative due to seasonal working capital consumption;
Embraer's liquidity remains solid as the Company finished the quarter with total cash of US$ 2,500.6 million and major debt maturities starting in 2022 onwards. Total debt at the end of 1Q20 was US$ 3,832.2 million, yielding a net debt position of US$ 1,331.6 million versus net debt of US$ 1,103.7 million in 1Q19. Embraer continues to evaluate additional financing to further enhance its cash position;
Due to the 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
	1Q19	4Q19	1Q20
Revenue	823.3	2,085.0	633.8
EBIT	(15.2)	(67.6)	(46.9)
EBIT margin %	-1.8%	-3.2%	-7.4%
Adjusted EBIT	(15.2)	4.0	8.7
Adjusted EBIT margin %	-1.8%	0.2%	1.4%
EBITDA	30.9	(5.8)	9.3
EBITDA margin %	3.8%	-0.3%	1.5%
Adjusted EBITDA	30.9	65.8	64.9
Adjusted EBITDA margin %	3.8%	3.2%	10.2%
Adjusted net income (Loss)	(61.8)	(93.4)	(104.0)
Adjusted earnings (losses) per share - ADS basic	(0.3360)	(0.5077)	(0.5651)
Net income (loss) attributable to Embraer Shareholders	(42.5)	(209.8)	(292.0)
Earnings (losses) per share - ADS basic (US$)	(0.2311)	(1.1404)	(1.5867)
Adjusted free cash flow	(665.3)	739.4	(676.5)
Net debt	(1,103.7)	(612.4)	(1,331.6)

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 1Q20 Results on Monday, June 1, 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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