PR Newswire
NEW YORK, March 21, 2017
NEW YORK, March 21, 2017 /PRNewswire/ --
Atento S.A. (NYSE: ATTO), the largest provider of customer-relationship management and business-process outsourcing services in Latin America, and among the top three providers globally, today announced its fourth-quarter and full year 2016 operating results. All comparisons in this announcement are year-over-year and in constant-currency (CCY), unless noted otherwise.
Summary
($ in millions except EPS) | Q4 2016 | Q4 2015 | CCY | FY 2016 | FY 2015 | CCY |
Revenue (1) | 442.0 | 453.8 | -4.2% | 1,757.5 | 1,949.9 | -1.4% |
Reported Net Income (2) | 16.7 | 7.5 | 131.9% | 3.4 | 52.2 | -92.8% |
Reported Earnings Per Share (2) | $0.23 | $0.10 | 130.0 % | $0.05 | $0.71 | -92.2% |
Net Operating Cash Flow from/(used) | 83.8 | 40.3 | | 141.9 | 37.0 | |
| | | | | | |
Adjusted EBITDA (3) | 58.6 | 63.8 | -9.7% | 221.9 | 249.7 | -3.6% |
Adjusted Margin | 13.3% | 14.1% | | 12.6% | 12.8% | |
Adjusted Earnings per Share (2) | $0.19 | $0.36 | -38.7% | $0.65 | $1.06 | -30.1% |
Free Cash Flow before Net Interest (4) | 90.0 | 20.1 | | 136.3 | (8.6) | |
Leverage (x) (5) | 1.5x | 1.6x | | 1.5x | 1.6x | |
| |
(1) | Revenue excludes Morocco which was divested in September 2016. |
(2) | Reported Net Income and Earnings Per Share and Adjusted EBITDA, adjusted EBITDA margin and Adjusted Earnings per Share refer only to continuing operations. Reported and Adjusted Earnings Per Share, for the period ended December 31, 2016, were calculated considering the number of ordinary shares of 73,816,933. For the period ended December 30, 2015, the number of ordinary shares was 73,648,760. |
(3) | EBITDA is defined as profit/(loss) for the period from continuing operations before net finance costs, income taxes and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted to exclude acquisition and integration related costs, restructuring costs, sponsor management fees, asset impairments, site relocation costs, financing and IPO fees, and other items which are not related to our core results of operations. EBITDA and Adjusted EBITDA are not measures defined by IFRS. The most directly comparable IFRS measure to EBITDA and Adjusted EBITDA is net income for the period from continuing operations. |
(4) | We define Free Cash flow (FCF) as net cash flows from operating activities less net cash and disposals of payments for acquisition of property, plant, equipment and intangible assets. |
(5) | Considered the pro-forma Net Debt adjusted to give effect to the Reorganization Transaction, regarding Preferred Equity Certificates. |
Alejandro Reynal, Atento´s Chief Executive Officer, commented, "In Fiscal 2016, we delivered on our commitment to expand our market leadership position, protect profitability and increase free cash flow generation. We achieved a 3.8% increase in revenue from multisector clients, supported by new business wins across all verticals and regions, and an adjusted EBITDA margin of 12.6%. Our ability to largely offset macro-driven declines in volume further demonstrates the resiliency and strength of our business model. In addition, we honed our growth strategy to better capitalize on our leadership position in the $10 billion Latin America CRM BPO market."
Mauricio Montilha, Atento´s Chief Financial Officer, said, "We strengthened our balance sheet and enhanced our financial flexibility through disciplined capital allocation and vigilance over working capital. We generated $136.3 million in free cash flow in Fiscal 2016 before interest, prepaid $30.7 million in higher-cost debt during the fourth quarter, and ended the year with low net leverage of 1.5x. We remain focused on targeted investments aligned with our growth strategy."
Mr. Reynal continued, "We strengthened our competitive position in Fiscal 2016 and believe we are well-positioned to capitalize on secular growth drivers and macro tailwinds in Fiscal 2017. Our strategic focus remains on the consolidation of our leadership position in core voice, continued expansion into higher value-add solutions and the evolution of our mainstream digital offering. Today we announced our planned acquisition of a majority stake in Interfile, a leading provider of credit origination BPO services in Brazil, which will allow us to accelerate our penetration of the $0.9 billion credit origination market in Latin America. In conjunction with RBrasil, a leading late-stage collections company we acquired in Fiscal 2016, Interfile will also strengthen our ability to provide end-to-end credit and collections solutions to our clients. We are confident our roadmap will deliver a return to both top and bottom line growth in Fiscal 2017, enhanced value for our clients and once again allow us to outperform the market and further increase our leadership position in Latin America."
For Fiscal 2017, Atento is targeting constant currency revenue growth in the range of 1% to 5% and adjusted EBITDA margin in the range of 11% to 12%.
Fourth Quarter Consolidated Operating Results
All comparisons in this announcement, unless otherwise noted, are year-over-year, in constant-currency (CCY) and exclude the effects of our divestiture of Morocco in September 2016.
On a reported basis, total revenue declined 2.6%, while revenue on a constant currency basis declined 4.2%. Broad-based growth from multisector clients, particularly in EMEA, was more than offset by a 12.7% decline in revenue from Telefónica driven by macro pressures in Brazil, Argentina, Mexico and EMEA. During the fourth quarter, we won 2,342 workstations and, consistent with our revenue diversification strategy, over 80% were with multisector, including new and existing clients in telecom, financial services, and technology. Our mix of revenue from multisector clients increased 4.7 percentage points to 60.0% of revenue.
Reported net income from continuing operations totaled $16.7 million while adjusted EBITDA and adjusted EBITDA margin were $58.6 million and 13.3%, respectively. Rigorous inflation pass-through, cost and efficiency initiatives, and an improved mix of revenue allowed us to deliver solid profitability in the quarter despite the decline in revenues.
Reported EPS of $0.23 increased by $0.13 as compared with the prior year period, driven by the favorable net impact of the termination of our $24 million contingent value obligation (CVI) in Argentina. Adjusted EPS of $0.19 decreased by $0.17, driven by foreign exchange, an increase in net interest expense and a higher share count.
Cash from operating activities totaled $83.8 million and free cash flow was $70.2 million. Excluding the impact of net interest expense and acquisition/sales of subsidiaries, free cash flow was $90.0 million, an increase of $69.9 million year-over-year. Year-to-date, free cash flow before interest was $136.3 million, representing an increase of $144.9 million year-over-year.
At the end of the fourth quarter, we had a liquidity position of $247.0 million and net debt to adjusted EBITDA of 1.5x.
Adjusted earnings, adjusted EBITDA and adjusted earnings per share are non-GAAP financial measures and are reconciled to their most directly comparable GAAP measures in the accompanying financial tables.
Segment Reporting
($ in millions) | Q4 2016 | Q4 2015 | CCY | FY 2016 | FY 2015 | CCY |
Brazil Region | | | | | | |
Revenue | 214.4 Werbung Mehr Nachrichten zur Atento Aktie kostenlos abonnieren
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