earnings results presentation
TRANSCRIPT
-
7/29/2019 Earnings results presentation
1/23
3Quarter 2012Earnings ResultsDASA announces Gross Revenue of R$
652.6 million and Operational Cash Flow
of R$ 55.5 million on 3Q12
Cynthia May Hobbs
CFORomeu Crtes Domingues
ChairmanOctvio Fernandes
VP of OperationsDickson Esteves Tangerino
CEO
Emerson Leandro GasparettoDirector of Imaging
Investor [email protected]
Tel: (011) 4197-5410Fax: (011) 4197-5516
www.dasa3.com.br
TELECONFERENCES
PortugueseDate: 11/13/12 | Hour: 10h00 (Braslia)
Tel.: 11 2188-0155 | Password: DASA
EnglishDate: 11/13/12 | Hour: 12h00 (Braslia)
Phone: 1(412)317-6776 | Password:DASA
DASA ON
Bovespa: DASA3Most recent quotation:
11/12/12: R$ 13.89
Average daily negotiation 3Q12:R$ 28.3 million
Market value:
R$ 4.3 billionUS$ 2.1 billion
Free Float: 97.2%
-
7/29/2019 Earnings results presentation
2/23
LEGAL NOTE
2 / 22
Certain statements made in this presentation may not be
based on historical information or facts. This presentation
therefore contains, or may deemed to contain, forward
looking statements, including those relating to
Companys general business plans and strategy, its future
financial condition and growth prospects, and future
developments in its industry and its competitive andregulatory environment.
By their nature, forward-looking statements involve risks
and uncertainties because they relate to events and
depend on circumstances that may or may not occur in
the future. Accordingly, actual results may differ
materially from these forward-looking statements due toa number of factors, including future changes or
developments in Companys business, its competitive
environment, technology developments and political,
economic, legal and social conditions in Brazil.
Forward looking information is not merely based on
historical fact but also reflects managements objectivesand expectations.
The words anticipate, wish, expect, foresee,
intend, plan, predict, forecast, aim and similar
words, written and/or spoken, are intended to identify
affirmations which, necessarily, involve known and
unknown risks. Known risks include uncertaintieswhich include, but are not limited to, interest rates,product competition, market acceptance ofproducts, the actions of competitors, regulatory
approval, currency type and fluctuations, monetarypolicy, among others.
The future results of the Company may vary from the
results expressed in, or implied by, the following
forward looking statements, possibly to a material
degree. For a discussion of some of the important
factors that could cause DASAs results to differ from
those expressed in, or implied by, the followingforward-looking statements, please refer to the
preliminary offering memorandum previously delivered
to you, in particular, the Risk Factors section thereof.
DASA may alter, modify or otherwise change in any
manner the contents of this presentation, without the
obligation to notify any person of such revision orchanges. For the purposes of this presentation, unless
otherwise indicated
or the context otherwise requires, all references to
Company refer to Diagnsticos da Amrica S.A and
its consolidated subsidiaries. All references to DASA
refer to Diagnsticos da Amrica S.A.
-
7/29/2019 Earnings results presentation
3/23
3Q12 HIGHLIGHTS AND RECENT FACTS
Growth
Gross Revenue of R$ 652.6 million ( 0.5 %) 20 new PSCs in 2012 19 fully operational, 8 from those in 3Q12 10 PSCs remodeling concluded until September 16 equipment upgrades until September, 7 CTs and 9 MRIs
New contract in the Public Market Clinical Analysis for the Rio de Janeiro Municipality
Quality
30 Workshops with Doctors
2 international seminars from Delboni (729 participants) and from Alta (450 participants) Leading edge equipment : MRI - 3 tesla and CT - 128 channels - PSCs in So Paulo New microbiology analysis technology launch (mass spectrometry) CAP (College of American Pathologists) accreditation renewal main international laboratories
hallmark of quality
Return for the shareholder
Ebitda of R$ 108.5 million, no adjustments Net income adjusted by the effective tax rate of R$ 31.7 million Operating cash flow of R$ 55.5 million
3 / 22
-
7/29/2019 Earnings results presentation
4/23
GROSS REVENUE (R$ MILLION)
4 / 22
Gross revenue reached R$ 1,886 million in the year, a growth of 5.4%
-
7/29/2019 Earnings results presentation
5/23
PATIENT SERVICE CENTERS
5 / 22
Growth impacted by PSCs remodeling, equipment upgrades, call center changes and 1
payer drawback in RJ
Incoming calls grew 12% compared with a 6% decrease in handled calls
More comprehensive imaging mix increasing average value per requisition
Gross Revenue (R$ million) Average revenue per requisition andvolume (millions)
-
7/29/2019 Earnings results presentation
6/23
Performance of the 4 PSCs with upgraded MRI in SP
SP TECHNOLOGY COMPLEX NEW EQUIPMENT PERFORMANCE
6 / 22
100.0
110.0
120.0
130.0
140.0
150.0
160.0
170.0
180.0
190.0
200.0
jan fev mar abr mai jun jul ago set
exames em 2011 exames em 2012
jan feb mar apr may jun jul aug sep
2012 exams2011 exams
New procedures mix and enhanced productivity
-
7/29/2019 Earnings results presentation
7/23
Equipment upgrade Equipment switch
100
105
110
115
120
125
130
135
140
145
1T11 2T11 3T11 4T11 1T12 2T12 3T12
CT- Computed Tomography : number of procedures (basis 100)
Interlagos
Santo Andr
Tatuap II
Sumar
Mooca
SBC
Penha
LapaGuarulhos
TatuapInterlagos
Borba Gato
Jardim Sul
Ricardo Jafet
7 / 22
SP TECHNOLOGY COMPLEX NEW EQUIPMENT PERFORMANCE
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
-
7/29/2019 Earnings results presentation
8/23
100
110
120
130
140
150
160
1T11 2T11 3T11 4T11 1T12 2T12 3T12
MRI Magnetic Ressonance: number of procedures (basis 100)
Guarulhos
Tatuap II
SBC
Brooklin
Darzan
Jardim Sul
Ricardo Jafet
Tatuap
8 / 22
SP TECHNOLOGY COMPLEX NEW EQUIPMENT PERFORMANCE
Equipment upgrade Equipment switch
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
-
7/29/2019 Earnings results presentation
9/23
HOSPITALS
9 / 22
Revenue drop related to the loss of So Luiz hospitals contract and optimization of
existing contracts (R$ 14 MM per quarter impact)
Focus on increasing profitability cancellation of 5 hospitals contracts
New contract in Rio de Janeiro for Clinical Analysis and Imaging, start in 4Q12
Gross Revenues (R$ million) Average revenue per requisitionand volume (millions)
-
7/29/2019 Earnings results presentation
10/23
LAB-TO-LAB
Increase in market share (111 new clients) and in the number of requisitions (8,5%)
Focus on maximizing profitability
Gross Revenues B2B (R$ million) Performance B2B
10 / 22
-
7/29/2019 Earnings results presentation
11/23
PUBLIC HOSPITALS AND CLINICS
Strong growth mainly due to new contract with the Rio de Janeiro Municipality
Gross Revenues (R$ million) Performance B2G
11 / 22
-
7/29/2019 Earnings results presentation
12/23
COSTS
12 / 22
Personnel: enhanced customer service and pre operational costs
Material: increased number of tests produced in the Public and Lab-to-lab market
Costs of services and utilities impacted by doctors fees, data link, and occupancy costs
3Q12 3Q11 3Q12 3Q11 %
Personnel 114.8 103.6 19.5% 17.3% 10.8%
Materials 106.7 98.9 18.1% 16.5% 7.9%
Services and Utilities 152.4 144.2 25.9% 24.0% 5.7%
General 5.6 6.5 1.0% 1.1% -13.6%
Cost of Services Cash 379.6 353.3 64.5% 58.9% 7.5%
Depreciation and amortization 25.2 20.1 4.3% 3.4% 25.1%
Cost of Services 404.8 373.4 68.8% 62.3% 8.4%
3Q12
vs3Q11
In R$ Million % of Net Revenues
-
7/29/2019 Earnings results presentation
13/23
CLINICAL COST ANALYSIS, PRODUCTIVITY AND GROWTH 3T12
13 / 22
Basis :100
# Tests
Productivity
(test/employee)
Total Unit Cost
Year 09 Year 10 Year 11 Year 12
-
7/29/2019 Earnings results presentation
14/23
COST CONTROL CONTINUOUS FOCUS IN 2013
14 / 22
EQUIPMENT AND PROCESSES
Full automation of Urino in SP - 29% productivity Automation of urino culture- 10% productivity Bacterian identification by mass spectometry - 120 K/month in SP and 100 K/ month in RJ - (material
cost gain) Conveyor Belt RJ - 12% productivity (tests/employee) Conveyor Belt CL/SP 12% productivity (tests/employee) and reagents
productivity, repetitive tasks
GAINS R$
Supplier A 800 K 5 months Supplier B 715 K 7 months Supplier C 256 K 2 months
SUPPLIERSInternational negotiation and favorable share
-
7/29/2019 Earnings results presentation
15/23
SG&A
15 / 22
General and Administrative: receivables personnel increase and call center
R$3 Million per quarter reduction from 1Q13 in occupancy costs
(*) As of 1Q12, the PDA is being considered under the "discounts" the income statement
3Q12 3Q11 3Q12 3Q11 %
General and Administrative 101.6 93.6 17.3% 15.6% 8.5%
Profit Sharing Program 0.2 0.5 0.0% 0.1% -50.1%
Other Operating Revenues/ Expenses (1.4) 0.7 -0.2% 0.1% -299.8%
PDA* - 6.3 0.0% 1.0% -
Cash Operating Expenses 100.4 101.1 17.1% 16.9% -0.7%
Depreciation and Amortization 17.4 10.8 3.0% 1.8% 61.3%
Operating Expenses 117.8 111.9 20.0% 18.7% 5.3%
In R$ Million % of Net Revenues3Q12 vs
3Q11
-
7/29/2019 Earnings results presentation
16/23
ACCOUNTING EBITDA (R$ MILLION)
16 / 22
Ebtida
Margin
-
7/29/2019 Earnings results presentation
17/23
INCOME TAX
17 / 22
Optimized fiscal benefit expected after the incorporation of MD1
*
* Withholding tax (current): Originally from financial income and withholding of gross revenue
33.7%
21.9%
34.0%
-0.3%
-11.2% -0.6%
00%
20%
40%
Income Tax Rate permanentsadjustements in tax
books
Income Taxes(Financial Statements)
Tax Loss/GoodwillCompensation
Other Withholding tax(current)/ Income taxes
cash
3Q12
-
7/29/2019 Earnings results presentation
18/23
RECEIVABLES
18 / 22
(1) - Index coverage = BDP balance/ expired > 120 days
R$ million 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
Accounts receivable 399.7 385.5 409.7 398.0 423.7 415.9 432.4
Past due 0-90 59.7 71.1 85.0 74.7 74.3 78.0 87.2
Past due 91 - 120 8.2 12.2 11.3 10.1 10.7 10.8 8.3
Past due (more than) 120 84.9 83.3 92.4 111.2 111.2 113.8 117.6Provisions (84.2) (71.7) (75.1) (103.9) (102.7) (106.1) (105.5)
Total Rec. 466.2 481.7 523.3 490.1 517.1 512.4 540.0
Coverage Index Average collection period
86.1%81.3%
92.4%89.7%
99.1%93.4% 93.2%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
107.8
112.9
101.2 100.0
100.3
3Q11 4Q11 1Q12 2Q12 3Q12
Provision rule
91 to 120 days 25%
121 to 180 days 50%
181 to 360 days 75%
More than 361 days 100%
-
7/29/2019 Earnings results presentation
19/23
19 / 22
BALANCE SHEET MANAGEMENT
142.1
(246.6)
(924.1)
84.7
(943.9)
Debt Composition(R$ million)
Cash and Cash Equivalents
Debt Short Term
Dvida Long Term (*)
Net Debt
(+) (Escrow)
(*) Includes Escrow
Operating cash flow is positive
Operational working capital
impacted by increased
revenues in 3Q12
Financial expenses impacted
by the lower interest rates
Net debt stable compared to2Q12
3Q12Accounting EBITDA 108.5
Operacional working capital (17.4)
Other working capital accounts (2.7)
Financial expenses (25.5)
Income tax (7.4)
Operational cash flow 55.5
Capex (55.8)
Free Cash Flow (0.3)
Management Cash Flow (R$ Million)
-
7/29/2019 Earnings results presentation
20/23
ROIC(*)
ROIC is impacted in the short term by the increased CAPEX
20 / 22
(*) Considering current EBITDANOPAT LTM/mean(working capital + intangible assets + fixed assets value for Exchange of shares of DASA and MD1)34% effective rate of Income Tax
-
7/29/2019 Earnings results presentation
21/23
CAPEX
21 / 22
Capex Breakdown 3Q12
In 3Q12 we deployed 6 MRIs, 3 CTs, launched 8 new PCSc and 4 remodeled 4 others
4Q12: 5 new MRIs , 1 upgraded CT, 1 new mega-PSC and 1 remodeled PSC
R$ 55.8 MM in 3Q12 and R$ 178.1 MM YTD
Opening and
Expansion of
PSCs
49.9%
Equipment
19.2%
Information
Technology
30.4%
Others
0.5%
-
7/29/2019 Earnings results presentation
22/23
FINAL REMARKS
22 / 22
WHAT ARE WE DOING?
Waste Reduction Group Price Policy Group Investment Management Group
People Management Group Incorporation of Acquired Companies Group Receivables Actions Cost and indicators management New front-end system and new ERP
RESULTS
Growth
Sustainability
Profitability
DOCTORS REVENUE INCREASE
EMPLOYEES WASTE REDUCTION
-
7/29/2019 Earnings results presentation
23/23