SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
 
FORM 6-K
 
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For November 12, 2015
(Commission File No. 1-31317)
 
 
Companhia de Saneamento Básico do Estado de São Paulo - SABESP
(Exact name of registrant as specified in its charter)
 
Basic Sanitation Company of the State of Sao Paulo - SABESP
(Translation of Registrant's name into English)
 

Rua Costa Carvalho, 300
São Paulo, S.P., 05429-900
Federative Republic of Brazil
(Address of Registrant's principal executive offices)


Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.

Form 20-F ___X___ Form 40-F ______
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1)__.
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7)__.

Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.

Yes ______ No ___X___

If "Yes" is marked, indicated below the file number assigned to the
registrant in connection with Rule 12g3-2(b):
 
 

 

 

SABESP announces 3Q15 results

São Paulo, November 12, 2015 - Companhia de Saneamento Básico do Estado de São Paulo - SABESP (BM&FBovespa: SBSP3; NYSE: SBS), one of the largest water and sewage services providers in the world based on the number of costumers, announces today its results for the third quarter of 2015 (3Q15). 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 2014.

SBSP3: R$ 17.88/share

SBS: US$ 4.63 (ADR=1 share)

Total shares: 683,509,869

Market value: R$ 12.2 billion

Closing quote: 11/12/2015

 

 


 

 

 
 

 

 

    

 

 

 

 
 

 

 

1.    Financial highlights

 

               

R$ million

 

 

3Q15

3Q14

Chg. (R$)

%

9M15

9M14

Chg. (R$)

%

 

Gross operating revenue

2,327.2

2,165.6

161.6

7.5

6,378.9

6,834.1

(455.2)

(6.7)

 

Construction revenue

1,015.2

799.7

215.5

26.9

2,508.5

2,009.7

498.8

24.8

 

COFINS and PASEP taxes

(145.4)

(141.8)

(3.6)

2.5

(398.9)

(474.2)

75.3

(15.9)

(=)

Net operating revenue

3,197.0

2,823.5

373.5

13.2

8,488.5

8,369.6

118.9

1.4

 

Costs and expenses

(1,570.8)

(1,541.0)

(29.8)

1.9

(3,825.1)

(4,707.3)

882.2

(18.7)

 

Construction costs

(993.0)

(782.1)

(210.9)

27.0

(2,454.6)

(1,966.9)

(487.7)

24.8

 

Equity result

(1.3)

(1.2)

(0.1)

-

(0.4)

(1.5)

1.1

(73.3)

 

Other operating revenue (expenses), net

54.3

(6.2)

60.5

(975.8)

98.1

(44.1)

142.2

(322.4)

(=)

Earnings before financial result, income tax and social contribution

686.2

493.0

193.2

39.2

2,306.5

1,649.8

656.7

39.8

 

Financial result

(1,539.4)

(337.8)

(1,201.6)

355.7

(2,369.7)

(331.8)

(2,037.9)

614.2

(=)

Earnings before income tax and social contribution

(853.2)

155.2

(1,008.4)

(649.7)

(63.2)

1,318.0

(1,381.2)

(104.8)

 

Income tax and social contribution

273.1

(63.7)

336.8

(528.7)

138.5

(446.5)

585.0

(131.0)

(=)

Net income (loss)

(580.1)

91.5

(671.6)

(734.0)

75.3

871.5

(796.2)

(91.4)

 

Earnings (loss) per share* (R$)

(0.85)

0.13

 

 

0.11

1.28

 

 

 

* Total shares = 683,509,869

                

 

 

Adjusted EBITDA Reconciliation (Non-accounting measures)

 

               

R$ million

 

 

3Q15

3Q14

Chg. (R$)

%

9M15

9M14

Chg. (R$)

%

 

Net income (loss)

(580.1)

91.5

(671.6)

(734.0)

75.3

871.5

(796.2)

(91.4)

 

Income tax and social contribution

(273.1)

63.7

(336.8)

(528.7)

(138.5)

446.5

(585.0)

(131.0)

 

Financial result

1,539.4

337.8

1,201.6

355.7

2,369.7

331.8

2,037.9

614.2

 

Other operating revenues (expenses), net

(54.3)

6.2

(60.5)

(975.8)

(98.1)

44.1

(142.2)

(322.4)

(=)

Adjusted EBIT*

631.9

499.2

132.7

26.6

2,208.4

1,693.9

514.5

30.4

 

Depreciation and amortization

271.3

243.2

28.1

11.6

808.7

726.0

82.7

11.4

(=)

Adjusted EBITDA **

903.2

742.4

160.8

21.7

3,017.1

2,419.9

597.2

24.7

 

(%) Adjusted EBITDA margin

28.3

26.3

 

 

35.5

28.9

 

 

(*) Adjusted EBIT is net income before: (i) other operating revenues/expenses; (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 3Q15, net operating revenue, including construction revenue, reached R$ 3.2 billion; a 13.2% increase compared to 3Q14.

Costs and expenses, including construction costs, totaled R$ 2.6 billion, up by 10.4% compared to R$ 2.3 billion recorded in 3Q14.

Adjusted EBIT, in the amount of R$ 631.9 million, grew 26.6% from R$ 499.2 million recorded in the same quarter of the previous year.

Adjusted EBITDA, in the amount of R$ 903.2 million, increased 21.7% from R$ 742.4 million recorded in 3Q14 (R$ 3,017.1 million in the last 9 months and R$ 3,515.9 million in the last 12 months).

The adjusted EBITDA margin was 28.3% in 3Q15, versus 26.3% in 3Q14 (35.5% in the last 9 months and 31.0% in the last 12 months). Excluding construction revenues and construction costs, the adjusted EBITDA margin was 40.4% in 3Q15 (35.8% in 3Q14, 49.6% in the last 9 months and 43.5% in the last 12 months).

In 3Q15 the Company recorded a net loss of R$ 580.1 million, in comparison to a net income of R$ 91.5 million recorded in 3Q14.

 

2. Gross operating revenue

Gross operating revenue from water and sewage, not including construction revenue, totaled R$ 2.3 billion, an increase of R$ 161.6 million or 7.5%, when compared to the R$ 2.2 billion recorded in 3Q14.

The main factors that led to this variation were:

·         6.5% repositioning tariff index since December 2014;

·         15.2% tariff increase (7.8% ordinary tariff adjustment and 6.9% extraordinary tariff revision) since June 2015; and

·         Application of contingency tariff, with a R$ 144.8 million impact in 3Q15.

 

 

 

Page 2 of 12

 
 

 

The increase in gross operating revenue was mitigated by:

 

·         Bonus granted within the Water Consumption Reduction Incentive Program, with a R$ 248.8 million impact in 3Q15, versus the R$ 129.4 million granted in 3Q14, leading to a decrease of 5.5% in gross operating revenue; and

·         Decrease of 5.8% in the Company’s total billed volume (6.8% in water and 4.4% in sewage).

 

3. Construction revenue

Construction revenue increased R$ 215.5 million or 26.9%, when compared to 3Q14. The variation was mainly due to higher investments in the concessions.


4. Billed volume

 

The following tables show the water and sewage billed volume, quarter-on-quarter and year-to-date, per customer category and region.

 

WATER AND SEWAGE BILLED VOLUME (1) PER CUSTOMER CATEGORY - million m3

 

 

Water

 

 

Sewage

 

Water + Sewage

 

Category

3Q15

3Q14

%

3Q15

3Q14

%

3Q15

3Q14

%

Residential

363.1

379.6

(4.3)

306.1

318.2

(3.8)

669.2

697.8

(4.1)

Commercial

39.6

42.4

(6.6)

37.8

40.1

(5.7)

77.4

82.5

(6.2)

Industrial

8.0

9.6

(16.7)

9.6

10.7

(10.3)

17.6

20.3

(13.3)

Public

9.6

12.9

(25.6)

8.4

9.9

(15.2)

18.0

22.8

(21.1)

Total retail

420.3

444.5

(5.4)

361.9

378.9

(4.5)

782.2

823.4

(5.0)

Wholesale (3)

52.8

63.1

(16.3)

5.8

5.8

-

58.6

68.9

(14.9)

Total

473.1

507.6

(6.8)

367.7

384.7

(4.4)

840.8

892.3

(5.8)

 

9M15

9M14

%

9M15

9M14

%

9M15

9M14

%

Residential

1,090.1

1,172.3

(7.0)

916.0

977.8

(6.3)

2,006.1

2,150.1

(6.7)

Commercial

119.5

130.1

(8.1)

113.4

122.4

(7.4)

232.9

252.5

(7.8)

Industrial

24.5

29.7

(17.5)

29.2

32.7

(10.7)

53.7

62.4

(13.9)

Public

30.8

39.8

(22.6)

24.8

30.8

(19.5)

55.6

70.6

(21.2)

Total retail

1,264.9

1,371.9

(7.8)

1,083.4

1,163.7

(6.9)

2,348.3

2,535.6

(7.4)

Wholesale (3)

164.9

208.0

(20.7)

18.3

18.9

(3.2)

183.2

226.9

(19.3)

Total

1,429.8

1,579.9

(9.5)

1,101.7

1,182.6

(6.8)

2,531.5

2,762.5

(8.4)

                   

WATER AND SEWAGE BILLED VOLUME (1) PER REGION - million m3

 

Water

 

Sewage

 

Water + Sewage

 

Region

3Q15

3Q14

%

3Q15

3Q14

%

3Q15

3Q14

%

Metropolitan

271.6

289.4

(6.2)

235.7

249.1

(5.4)

507.3

538.5

(5.8)

Regional (2)

148.7

155.1

(4.1)

126.2

129.8

(2.8)

274.9

284.9

(3.5)

Total retail

420.3

444.5

(5.4)

361.9

378.9

(4.5)

782.2

823.4

(5.0)

Wholesale (3)

52.8

63.1

(16.3)

5.8

5.8

-

58.6

68.9

(14.9)

Total

473.1

507.6

(6.8)

367.7

384.7

(4.4)

840.8

892.3

(5.8)

 

9M15

9M14

%

9M15

9M14

%

9M15

9M14

%

Metropolitan

806.6

891.2

(9.5)

698.2

763.3

(8.5)

1,504.8

1,654.5

(9.0)

Regional (2)

458.3

480.7

(4.7)

385.2

400.4

(3.8)

843.5

881.1

(4.3)

Total retail

1,264.9

1,371.9

(7.8)

1,083.4

1,163.7

(6.9)

2,348.3

2,535.6

(7.4)

Wholesale (3)

164.9

208.0

(20.7)

18.3

18.9

(3.2)

183.2

226.9

(19.3)

Total

1,429.8

1,579.9

(9.5)

1,101.7

1,182.6

(6.8)

2,531.5

2,762.5

(8.4)


               (1) Unaudited
               (2) Including coastal and interior region
               (3) Reused water and non-domestic sewage are included in wholesale

 

Page 3 of 12

 
 

 

5. Costs, administrative, selling and construction expenses

In 3Q15, costs, administrative, selling and construction expenses, grew 10.4% (R$ 240.7 million). Excluding construction costs, total costs and expenses grew by 1.9%. As a percentage of net revenue, cost and expenses were 82.3% in 3Q14 and 80.2% in 3Q15.

 

             

R$ million

 

3Q15

3Q14

Chg. (R$)

%

9M15

9M14

Chg. (R$)

%

Payroll and benefits

552.0

535.9

16.1

3.0

1,615.3

1,584.0

31.3

2.0

Supplies

42.0

54.7

(12.7)

(23.2)

133.7

148.8

(15.1)

(10.1)

Treatment supplies

62.9

65.6

(2.7)

(4.1)

198.8

199.9

(1.1)

(0.6)

Services

296.6

301.1

(4.5)

(1.5)

862.5

967.4

(104.9)

(10.8)

Electric power

220.0

156.3

63.7

40.8

587.4

440.8

146.6

33.3

General expenses

144.5

187.6

(43.1)

(23.0)

247.7

530.3

(282.6)

(53.3)

Tax expenses

19.6

18.2

1.4

7.7

57.9

55.4

2.5

4.5

São Paulo state government reimbursement

-

-

-

-

(696.3)

-

(696.3)

-

Sub-total

1,337.6

1,319.4

18.2

1.4

3,007.0

3,926.6

(919.6)

(23.4)

Depreciation and amortization

271.3

243.2

28.1

11.6

808.7

726.0

82.7

11.4

Credit write-offs

(38.1)

(21.6)

(16.5)

76.4

9.4

54.7

(45.3)

(82.8)

Sub-total

233.2

221.6

11.6

5.2

818.1

780.7

37.4

4.8

Costs, administrative and selling expenses

1,570.8

1,541.0

29.8

1.9

3,825.1

4,707.3

(882.2)

(18.7)

Construction costs

993.0

782.1

210.9

27.0

2,454.6

1,966.9

487.7

24.8

Costs, adm., selling and construction expenses

2,563.8

2,323.1

240.7

10.4

6,279.7

6,674.2

(394.5)

(5.9)

% of net revenue

80.2

82.3

 

 

74.0

79.7

 

 

 

5.1. Payroll and benefits

 

In 3Q15 payroll and benefits increased R$ 16.1 million or 3.0%, due to the following:

 

·         R$ 20.5 million, mainly due to the average wage increase of 9.7% in May 2015 and by the application of 1% related to the career and wage plan, since July 2015;

·         R$ 10.3 million in the provision for the pension plan, arising from changes in actuarial assumptions; and

·         R$ 8.3 million severance payments, due to dismissal in 3Q15.

 

Despite the above factors, there was a decrease of R$ 24.9 million, due to the smaller number of employees entitled to retirement (TAC).

 

 5.2. Supplies

 

In 3Q15, expenses with supplies decreased R$ 12.7 million or 23.2%, from R$ 54.7 million to R$ 42.0 million, mostly due to lower use of materials in preventive and corrective maintenance in water and sewage systems, expansion of computerized systems and conservation of properties and installations, in the amount of R$ 8.7 million.

 

 

5.3. Services

 

Services expenses, in the amount of R$ 296.6 million, dropped R$ 4.5 million or 1.5%, in comparison to R$ 301.1 million in 3Q14. The main factors that led to this decrease were lower expenses with the Program for the Rational Use of Water (PURA), in the amount of R$ 2.4 million and with surveillance services, in the amount of R$ 2.3 million.

 

 

5.4. Electric power

 

Electric power expenses totaled R$ 220.0 million, an increase of R$ 63.7 million or 40.8% in comparison to the R$ 156.3 million in 3Q14, chiefly due to the following:

·         Average increase of 76.4% in the regulated market tariffs, with a 8.3% decrease in consumption; and

 

Page 4 of 12

 
 

 

·         Average increase of 196.4% in the grid market tariffs (TUSD), with a 4.0% decrease in consumption.

The increases were partially offset by the 11.1% drop in tariffs and the 2.6% drop in the free market consumption.

 

In 3Q15 the regulated market accounted for 67.1% of the total electric power consumed by the Company, the free market accounted for 17.4% and the grid market (TUSD) accounted for 15.5% of total consumption.

 

5.5. General expenses

 

General expenses dropped R$ 43.1 million or 23.0%, totaling R$ 144.5 million, versus the R$ 187.6 million recorded in 3Q14 mainly due to:

·         Reversal of the provision, totaling R$ 17.9 million, related to the recovery of amounts with the Government of the State of São Paulo – GESP due to the disposal of employees; and

·         R$ 17.7 million decrease in the provision for lawsuits.

 

5.6. Depreciation and amortization

 

R$ 28.1 million increase or 11.6%, reaching R$ 271.3 million in comparison to the R$ 243.2 million recorded in 3Q14, largely due to the beginning of operations of intangible assets, in the amount of R$ 2.5 billion.

 


5.7. Credit write-offs

 

Credit write-offs decreased R$ 16.5 million, especially due to the reversal of the provision for losses with the municipality of Santos, in the amount of R$ 70.5 million, as a result of the settlement of an agreement.

 

The decrease was offset by the additional provisions for losses in the amount of R$ 54.0 million, mostly with public entities and private clients.

 

6. Other operating revenues and expenses, net

 

Other net operational revenues and expenses reported an upturn of R$ 60.5 million, mainly due to the following:

 

·         An increase of R$ 42.7 million in other operating revenues, largely due to the proceeds of R$ 22.1 million related to the Depollution Program of Hydrographic Basins and the sale of real estate in 3Q15, totaling R$ 16.6 million; and

·         A decrease of R$ 17.8 million on other operating expenses, as a result of the decrease in the write-off of obsolete goods during 3Q15, in the amount of R$ 14.6 million.

 

7. Financial result

     

R$ million

 

3Q15

3Q14

Chg.

%

Financial expenses, net of revenues

(105.6)

(36.7)

(68.9)

187.7

Net monetary and exchange variation

(1,433.8)

(301.1)

(1,132.7)

376.2

Financial result

(1,539.4)

(337.8)

(1,201.6)

355.7

 

 

Page 5 of 12

 
 

 

7.1. Financial revenues and expenses 

 

     

R$ million

 

3Q15

3Q14

Chg.

%

Financial expenses

 

 

 

 

Interest and charges on international loans and financing

(39.2)

(27.1)

(12.1)

44.6

Interest and charges on domestic loans and financing

(80.9)

(46.6)

(34.3)

73.6

Other financial expenses

(50.4)

(43.9)

(6.5)

14.8

Total financial expenses

(170.5)

(117.6)

(52.9)

45.0

Financial revenues

64.9

80.9

(16.0)

(19.8)

Financial expenses net of revenues

(105.6)

(36.7)

(68.9)

187.7

 

7.1.1. Financial expenses

 

Financial expenses grew R$ 52.9 million. The main reasons were:

 

·         R$ 34.3 million in interest and charges on domestic loans and financing, especially due to the higher appreciation of the CDI in 3Q15, in comparison to 3Q14 (14.13% and 10.81%, respectively); and

·         R$ 12.1 million in interest and charges on international loans and financing, due to the higher appreciation of US dollar and the Yen versus the Brazilian Real in 3Q15 (28.1% and 30.5%, respectively), when compared to 3Q14 (11.3% and 2.8%, respectively).

 

7.1.2. Financial revenues

 

Financial revenues decreased R$ 16.0 million, largely due to lower financial investments held in the period.

 

7.2. Monetary and exchange rate variation on assets and liabilities

 

       

R$ million

 

3Q15

3Q14

Chg.

%

Monetary variation on loans and financing

(25.9)

(10.2)

(15.7)

153.9

Currency exchange variation on loans and financing

(1,448.9)

(312.9)

(1,136.0)

363.1

Other monetary variations

(18.6)

(6.8)

(11.8)

173.5

Monetary/exchange rate variation on liabilities

(1,493.4)

(329.9)

(1,163.5)

352.7

Monetary/exchange rate variation on assets

59.6

28.8

30.8

106.9

Monetary/exchange rate variation, net

(1,433.8)

(301.1)

(1,132.7)

376.2

 

 

7.2.1. Monetary/currency exchange variation on liabilities

 

The effect on the monetary/currency exchange variation on liabilities in 3Q15 was R$ 1,163.5 million, higher than in 3Q14, especially due to:

 

·         Negative variation of R$ 1,136.0 million in expenses with exchange rate variation on loans and financing, due to a higher appreciation of the US dollar and the Yen versus the Brazilian Real in 3Q15 (28.1% and 30.5%, respectively), when compared to 3Q14 (11.3% and 2.8%, respectively); and

·         An upturn of R$ 15.7 million in expenses with monetary variation on loans and financing, due to the increase in the IPCA (Amplified Consumer Price Index) in 3Q15 compared to 3Q14 (1.4% and 0.8%, respectively).

 

7.2.2. Monetary/Exchange rate variation on assets

 

An increase of R$ 30.8 million, especially due to the monetary update on the agreement with the municipality of Santos, in 3Q15.

 

 

Page 6 of 12

 
 

 

8. Income tax and social contribution

Recorded a R$ 336.8 million upturn, due to the decrease in taxable income in 3Q15, versus 3Q14.

 

 

9. Indicators



 

9.1. Operating

 

As a result of the water crisis, there was a substantial reduction in the water production volume, down by 11.1% in the quarter and 15.9% in the nine month period.

 

There was also a substantial decline in the index that measures water losses per connection per day (IPDT) which came to 261 liters/connection x day versus 340 liters/connection x day on the same period last year. This reduction was the result not only of loss control initiatives, but also of the water crisis and the consequent need to reduce the network pressure as a demand management mechanism.

 

 

Operating indicators *

3Q15

3Q14

%

Water connections (1)

8,366

8,156

2.6

Sewage connections (1)

6,806

6,607

3.0

Population directly served - water (2)

25.5

25.2

1.2

Population directly served - sewage (2)

22.7

22.2

2.3

Number of employees

14,056

14,766

(4.8)

Water volume produced - quarter (3)

615

692

(11.1)

Water volume produced - nine months (3)

1,834

2,180

(15.9)

IPM - Measured water loss (%)

28.3

30.2

(6.3)

IPDt (liters/connection x day)

261

340

(23.2)

(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

 

 

9.2. Financial

 

Economic Indexes * (quarter end)

3Q15

3Q14

Amplified Consumer Price Index (IPCA) - %

0.54

0.57

Referential Rate (TR) - %

0.19

0.09

Interbank Deposit Certificate (CDI) - %

14.13

10.81

US DOLAR (R$)

3.9729

2.4510

YEN (R$)

0.03316

0.02235

(*)     Unaudited

 

 

Page 7 of 12

 
 

10. Loans and financing

 

On September 30, 2015, the Company and the IDB entered into a Letter Agreement related to the AB Loan 1983AB Loan Agreement, in which the IDB irrevocably agreed not to exercise its right to accelerate the debt, in the period between September 30, 2015 and October 1, 2016, in the case of non-compliance, in a single quarter, with the “Adjusted net debt / EBITDA” ratio, which should be lower than 3.65. The IDB may exercise its right to accelerate repayment in the case of non-compliance with said ratio for more than one quarter. The Company’s ratio this quarter was 3.54, in line with the contractual requirement.

 

 

             

R$ million

INSTITUTION

2015

2016

2017

2018

2019

2020

2021 and onwards

Total

Local market

 

 

 

 

 

 

 

 

Caixa Econômica Federal

11.1

48.0

52.5

55.9

57.6

59.7

749.5

1,034.3

Debentures

38.4

360.8

889.4

604.9

698.7

388.9

597.8

3,578.9

BNDES

13.5

70.1

75.5

75.5

75.5

57.8

299.2

667.1

Commercial Leasing

2.8

20.1

21.2

22.4

23.6

25.0

407.2

522.3

Others

0.2

0.6

0.7

0.5

-

-

-

2.0

Interest and charges

45.3

66.9

-

-

-

-

-

112.2

Local market total

111.3

566.5

1,039.3

759.2

855.4

531.4

2,053.7

5,916.8

International market

 

 

 

 

 

 

 

 

BID

5.5

151.6

223.3

123.6

123.5

123.6

1,435.7

2,186.8

BIRD

-

-

-

-

7.7

15.3

206.6

229.6

Eurobonds

-

556.1

-

-

-

1,386.2

-

1,942.3

JICA

-

72.6

74.0

75.3

114.0

114.0

1,329.6

1,779.5

BID 1983AB

-

95.1

95.1

94.9

70.3

69.6

90.8

515.8

Interest and charges

55.9

6.9

-

-

-

-

-

62.8

International market total

61.4

882.3

392.4

293.8

315.5

1,708.7

3,062.7

6,716.8

Total

172.7

1,448.8

1,431.7

1,053.0

1,170.9

2,240.1

5,116.4

12,633.6

 

 

11. Capex

 

In the third quarter of 2015 R$ 1.0 billion were invested, totaling R$ 2.6 billion investments in the first nine months of 2015.

 

 

 

Page 8 of 12

 
 

 

12. Conference calls

 

 

In Portuguese

November 13, 2015

7:30 am (US EST) / 10:30 am (Brasília)

Dial in: 55 (11) 2188-0155

Code: Sabesp

 

Replay available for 7 days

Dial in: 55 (11) 2188-0400
Code: Sabesp

 

Click here to access the webcast

 

 

In English

November 13, 2015

2:00 pm (Brasília) / 11:00 am (US EST)

Dial in: 1 (412) 317-6776

Code: Sabesp

 

Replay available for 7 days

Dial in: 1(412) 317-0088

Code: 10071645

 

Click here to access the webcast

 

 

 

 

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

 

3Q15

3Q14

Gross Operating Revenue

3,342,404

2,965,408

Water Supply - Retail

1,257,278

1,126,959

Water Supply - Wholesale

26,644

40,730

Sewage Collection and Treatment

998,435

955,781

Sewage Collection and Treatment - Wholesale

5,615

5,574

Construction Revenue - Water

732,144

374,240

Construction Revenue - Sewage

283,094

425,491

Other Services

39,194

36,633

Taxes on Sales and Services - COFINS and PASEP

(145,412)

(141,876)

Net Operating Revenue

3,196,992

2,823,532

Operating Costs

(2,261,459)

(1,985,938)

Gross Profit

935,533

837,594

Operating Expenses

 

 

Selling

(109,709)

(126,564)

Administrative

(192,637)

(210,716)

Other operating revenue (expenses), net 

54,315

(6,168)

Operating Income Before Shareholdings 

687,502

494,146

Equity Result 

(1,375)

(1,167)

Earnings Before Financial Results, net

686,127

492,979

Financial, net

(90,482)

(24,633)

Exchange gain (loss), net

(1,448,928)

(313,139)

Earnings before Income Tax and Social Contribution

(853,283)

155,207

Income Tax and Social Contribution

 

 

Current

(674)

(41,608)

Deferred

273,813

(22,098)

Net Income (loss) for the period

(580,144)

91,501

Registered common shares ('000)

683,509

683,509

Earnings per shares - R$ (per share)

(0.85)

0.13

Depreciation and Amortization

(271,311)

(243,199)

Adjusted EBITDA

903,123

742,346

% over net revenue

28.2%

26.3%

 



 

 

Page 10 of 12

 
 

Balance Sheet

 

Brazilian Corporate Law

  

R$ '000

ASSETS

09/30/2015

 

12/31/2014

Current assets

 

 

Cash and cash equivalents

889,933

1,722,991

Trade accounts receivable

1,236,982

1,034,820

Accounts receivable from related parties

137,515

121,965

Inventories

56,739

66,487

Restricted cash

29,331

19,750

Recoverable taxes

66,097

148,768

Other accounts receivable

196,136

100,664

Total current assets

2,612,733

3,215,445

 

 

 

Noncurrent assets

 

 

Trade accounts receivable

164,311

189,458

Accounts receivable from related parties

678,337

102,018

Escrow deposits

78,041

69,488

Deferred income tax and social contribution

348,913

209,478

Water National Agency – ANA

88,267

122,634

Other accounts receivable

83,860

87,286

 

 

 

Investments

22,759

21,223

Investment properties

59,240

54,039

Intangible assets

28,020,539

25,979,526

Property, plant and equipment

299,526

304,845

Total noncurrent assets

29,843,793

27,139,995

 

 

 

Total assets

32,456,526

30,355,440

 

 

 

LIABILITIES AND EQUITY

09/30/2015

 

12/31/2014

Current liabilities

 

 

Trade payables and contractors

225,804

323,513

Current portion of long-term loans and financing

973,726

1,207,126

Accrued payroll and related charges

397,105

387,971

Taxes and contributions

75,724

74,138

Interest on shareholders' equity payable

81

214,523

Provisions

617,185

625,092

Services payable

328,281

318,973

Public-Private Partnership – PPP

39,456

38,047

Program Contract Commitments

256,944

189,551

Other liabilities

76,683

101,642

Total current liabilities

2,990,989

3,480,576

 

 

 

Noncurrent liabilities

 

 

Loans and financing

11,659,836

9,578,641

Deferred Cofins and Pasep

132,779

129,351

Provisions

389,511

595,255

Pension obligations

2,849,389

2,729,598

Public-Private Partnership – PPP

832,203

330,236

Program Contract Commitments

98,506

18,208

Other liabilities

145,563

189,172

Total noncurrent liabilities

16,107,787

13,570,461

 

Total liabilities

19,098,776

17,051,037

 

 

 

Equity

 

 

Capital stock

10,000,000

10,000,000

Earnings reserves

3,672,149

3,694,151

Other comprehensive income

(389,748)

(389,748)

Accrued earnings

75,349

-

Total equity

13,357,750

13,304,403

 

 

 

Total equity and liabilities

32,456,526

30,355,440

 

 

Page 11 of 12

 
 

Cash Flow

 

Brazilian Corporate Law

  

R$ '000

 

 

Jan-Sep/2015

 

Jan-Sep/2014

Cash flow from operating activities

 

 

 

Profit before income tax and social contribution

(63,187)

1,317,996

Adjustment for:

 

 

 

Depreciation and amortization

808,706

726,051

 

Residual value of property, plant and equipment and intangible assets written-off

18,214

28,887

 

Allowance for doubtful accounts

9,389

54,688

 

Provision and inflation adjustment

(116,292)

151,776

 

GESP Agreement

(696,283)

-

 

Interest calculated on loans and financing payable

357,306

293,000

 

Inflation adjustment and foreign exchange gains (losses) on loans and financing

2,247,653

183,808

 

Interest and inflation adjustment losses

17,469

13,942

 

Interest and inflation adjustment gains

(36,514)

(24,564)

 

Financial charges from customers

(199,994)

(142,996)

 

Margin on intangible assets arising from concession

(53,881)

(42,775)

 

Provision for Consent Decree (TAC)

(17,916)

40,977

 

Equity result

376

1,486

 

Provision from São Paulo agreement

8,012

(17,504)

 

Provision for defined contribution plan

5,908

7,105

 

Pension obligations

246,346

216,970

 

Other adjustments

(13,731)

57,086

   

2,521,581

2,865,933

Changes in assets

  

 

 

Trade accounts receivable

17,731

277,581

 

Accounts receivable from related parties

15,364

40,940

 

Inventories

9,366

5,096

 

Recoverable taxes

82,671

-

 

Escrow deposits

25,696

598

 

Other accounts receivable

(26)

(30,621)

Changes in liabilities

  

 

 

Trade payables and contractors

(31,968)

1,694

 

Services received

1,296

22,070

 

Accrued payroll and related charges

27,050

49,815

 

Taxes and contributions payable

15,776

(100,753)

 

Deferred Cofins/Pasep

3,428

953

 

Provisions

(97,359)

(150,331)

 

Pension obligations

(126,555)

(119,580)

 

Other liabilities

(71,732)

(18,437)

     

 

Cash generated from operations

2,392,319

2,844,958

     

 

 

Interest paid

(521,566)

(415,829)

 

Income tax and contribution paid

(17,743)

(422,193)

   

 

 

Net cash generated from operating activities

1,853,010

2,006,936

   

 

 

Cash flows from investing activities

 

 

 

Acquisition of intangibles

(1,856,910)

(1,834,304)

 

Restricted cash

(9,581)

(10,247)

 

Investment increase

-

(24)

 

Purchases of tangible assets

(21,902)

(85,031)

 

Dividends received

1,526

-

Net cash used in investing activities

(1,886,867)

(1,929,606)

   

 

 

Cash flow from financing activities

 

 

 

Loans and financing

 

 

 

Proceeds from loans

684,586

940,215

 

Repayments of loans

(1,219,588)

(418,963)

 

Payment of interest on shareholders'equity

(202,108)

(467,470)

 

Public-Private Partnership – PPP

(17,169)

(15,030)

 

Program Contract Commitments

(44,922)

(38,393)

Net cash generated by financing activities

(799,201)

359

   

Cash reduce and cash equivalents

(833,058)

77,689

       

Represented by:

    

Cash and cash equivalents at beginning of the period

1,722,991

1,782,001

Cash and cash equivalents at end of the period

889,933

1,859,690

Cash reduce and cash equivalents

(833,058)

77,689

 

 

 

Page 12 of 12

 
SIGNATURE  
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the city São Paulo, Brazil.
Date: November 12, 2015
 
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
 

 

 
FORWARD-LOOKING STATEMENTS

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.

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