NEW YORK, March 3, 2020 /PRNewswire/ -- Atento S.A. (NYSE:
ATTO) ("Atento" or the "Company"), the largest provider of
customer-relationship management and business-process outsourcing
services in Latin America, and
among the top five providers globally, today announced its
fourth-quarter and full-year operating and financial results for
the period ending December 31, 2019.
All comparisons in this announcement are year-over-year (YoY) and
in constant-currency (CCY), unless noted otherwise, and may differ
from the 6-K due to certain intra-group eliminations.
Q4 2019 highlights
13.9% Multisector
growth in Q4 drove a 4.8% YoY increase in consolidated
revenue
- Multisector growth
in all regions: 6.3%, 27.3% and 9.8% in Brazil, Americas and EMEA,
respectively
- Born-digital
companies and healthcare providers drove Multisector growth in
Brazil, while higher volumes from new and existing contracts drove
Multisector sales up in the Americas
Run rate EBITDA
increased 3.3% YoY in the quarter reflecting better mix revenue
expansion
- Normalized Adjusted
EBITDA margin expanded 50 bps and 40 bps in Brazil and Americas,
respectively
FCF of $41.0
million, reflecting improved working capital
- Historical positive
seasonality in the quarter
- Collection recovery
from a specific renegotiated contract, as noted on previous
earnings call
1.3 million shares
repurchased in Q4 for $3.4 million, demonstrating management
confidence in the transformation plan and prospects of the
business
|
Full Year 2019 highlights
7.5% Multisector
growth in 2019 drove a within guidance 2.1% YoY increase in
consolidated revenue
- Multisector growth
in all regions: 6.4%, 9.4% and 10.3% in Brazil, Americas and EMEA,
respectively
- Born-digital
companies and healthcare providers drove multisector growth in
Brazil, while higher volumes from new and existing contracts drove
Multisector sales in the Americas
- Multisector
accounted for 64.7% of total revenue in FY 2019, a 370bps
increase
- A record sales
year: 45% YoY growth in New In-Year Revenues with better
profitability
EBITDA improving
sequentially throughout the year
- Positive trend
reflecting better revenue mix and operational improvements
initiatives
- Programs returned
to clients in Brazil in 2H19 expected to contribute ~100bps in
Adjusted EBITDA margin of the country in 2020
Operating cashflow
of $52.7 million helping to fund transformation plan and return to
shareholders
- Impact from
extraordinary items related to transformation plan that will lead
to improved profitability in 2020
- $14.9 million I to
consolidate the minority stakes that the company did not have in
Interfile and RBrasil
- FCF of -$9.6
million
4.4 million shares
repurchased in 2019 for $11.1 million, demonstrating management
confidence in the transformation plan and prospects of the
business
|
Summarized Financials
($ in millions except
EPS)
|
Q4
2019
|
Q4 2018
|
CCY
Growth
|
FY
2019
|
FY 2018
|
CCY
Growth
|
Income
Statement
|
|
|
|
|
|
|
Revenue
|
417.2
|
421.8
|
4.8%
|
1,707.3
|
1,818.2
|
2.1%
|
EBITDA
(1)
|
20.7
|
39.0
|
-41.1%
|
153.4
|
184.8
|
-9.9%
|
EBITDA
Margin
|
5.0%
|
9.2%
|
-4.3p.p.
|
9.0%
|
10.2%
|
-1.2p.p.
|
Net Income
(2)
|
(29.6)
|
15.0
|
n.m.
|
(80.7)
|
20.5
|
n.m.
|
Recurring Net Income
(2)
|
(13.5)
|
15.7
|
n.m.
|
(23.9)
|
57.2
|
128.7%
|
Earnings Per Share
(2)
|
(0.42)
|
0.20
|
n.m.
|
(1.11)
|
0.28
|
n.m.
|
Recurring Earnings Per
Share (2)
|
(0.19)
|
0.21
|
n.m.
|
(0.32)
|
0.77
|
128.7%
|
Cash flow, Debt
and Leverage
|
|
|
|
|
|
|
Free Cash Flow
(3)
|
44.2
|
45.2
|
|
52.7
|
88.8
|
|
Cash and Cash
Equivalents
|
124.7
|
133.5
|
|
|
|
|
Net
Debt
|
595.9
|
326.2
|
|
|
|
|
Leverage
(x)
|
3.9
|
1.8
|
|
|
|
|
|
|
(1)
|
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
restructuring costs, site relocation costs and other items 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 profit/
(loss) for the year/period from continuing operations.
|
(2)
|
Reported Net Income
and Earnings per Share and Adjusted EBITDA, Adjusted EBITDA Margin
and Adjusted Earnings per Share refer only to continuing
operations. Adjusted Earnings per share is calculated based on
weighted average number of ordinary shares outstanding of
73,841,447 and 69,893,848 for the three months ended in December
31, 2018 and 2019, respectively. 73,841,447 and 72,622,844, as of
for the year ended December 31, 2018 and 2019
|
(3)
|
We define Free Cash
Flow before interest and acquisitions as operating cashflow minus
Capex payments and income tax expenses.
|
|
|
Message from the CEO and CFO
Carlos López-Abadia, Atento's Chief Executive Officer,
commented, "Among our encouraging fourth quarter results was robust
multisector revenue growth across all regions, demonstrating that
our Three Horizon Plan continues to gain traction with improved
overall results quarter after quarter. Having completed my first
year as Atento's CEO, I am also encouraged to see colleagues at all
levels of our company starting to absorb the cultural changes we
have been realizing under our extensive transformation plan. That
includes making some tough decisions, such as returning client
programs that are no longer profitable or not aligned with our
long-term growth strategy. We are confident that this and other
measures we have been taking will lead to improved profitability
quarter after quarter in 2020 and expect such progress to be
reflected in Atento's share price."
José Azevedo, Atento's Chief Financial Officer, said, "I have
just completed my first 100 days at Atento. I am very excited about
the future of the company and glad to be part of this team that is
building a strong foundation to lead the next generation CX.
I have been implementing a number of changes in Atento's finance
department to help changing the culture of the company to
increasingly focus at improving cashflow and profitability. I am
confident we have the strategy and tools to maximize shareholder
return over the long term."
Fourth Quarter and Full-Year Consolidated Operating
Results
Consolidated revenue increased 4.8% to $417.2 million in the fourth quarter of 2019,
with Multisector sales up 13.9% growing across all regions, while
Telefónica revenue decreased 12.3%, reflecting the decision to
return programs that are not aligned with the company's long-term
strategy. In Brazil, total revenue
declined 1.2%, impacted by returned Telefónica programs, while
Multisector sales grew 6.3%, mainly among born-digital and
healthcare clients. Multisector sales in the Americas
increased 27.3% on higher volumes in both existing and new
contracts, while EMEA Multisector sales rose 9.8%, reflecting
higher volumes in new programs acquired from existing clients
during the year. Fourth quarter Telefónica sales decreased 12.3%,
reflecting a 19.0% decline in Brazil from the returned programs, and also
lower volumes in Peru,
Chile and Spain, which led to a 7.6% decrease in the
Americas and an 8.8% decline in EMEA.
For the year ended December 31,
2019, consolidated revenue increased 2.1%, in line with
guidance, to $1,707.3 million, with
Multisector sales up 7.5%, further diversifying revenue and
accounting for 64.7% of annual sales, a 370 basis point expansion
of share. Revenues from Telefónica decreased 6.4%. By region,
Brazil revenue grew 2.1%, while
Americas and EMEA revenues increased 2.8% and 2.0%,
respectively.
In the fourth quarter of 2019, reported EBITDA decreased 41.1%
YoY to $20.7 million and included (i)
negative $11.6 million of
extraordinary items related to the transformation plan, (ii) a
non-cash $30.9 million impairment
charge to Goodwill in Argentina,
related to the economic crisis and hyperinflation in that country
and (iii) a $17.9 million positive
effect related to IFRS16. The normalized EBITDA margin decreased 40
basis points to 10.9%, due to lower Telefónica volumes, mainly in
Peru, Chile and EMEA. In Brazil, the Americas and EMEA, normalized
adjusted EBITDA margin was 14.4%, 9.0% and 7.6%, respectively.
For full-year 2019, reported EBITDA decreased 9.9% to
$153.4 million, and includes the
$30.9 million impairment in
Argentina. Excluding this effect,
EBITDA margin was 10.8%, slightly below the guidance of 11.0% to
12.0%. This result reflects a very difficult first half of 2019,
including less profitable programs with telcos (that were
discontinued in the second half of the year) in addition to
$29.7 million in extraordinary items
related to the transformation plan.
Reported earnings per share was negative $0.42 in the fourth quarter of 2019, with
recurring EPS of positive $0.21 when
excluding the aforementioned extraordinary items and impairment
charge in Argentina. For the year,
reported EPS was negative $1.11 and
includes $0.51 from tax settlement in
Spain, while recurring EPS was
positive $0.22 when excluding the
extraordinary items related to the transformation plan and the
impairment in Argentina.
Adjusted earnings, adjusted EBITDA and adjusted earnings per
share are non-GAAP financial measures and are reconciled to their
most directly comparable GAAP measures in the accompanying
financial tables.
Segment Reporting
($ in
millions)
|
Q4
2019
|
Q4 2018
|
CCY
growth
|
FY
2019
|
FY 2018
|
CCY
growth
|
Brazil
Region
|
|
|
|
|
|
|
Revenue
|
194.8
|
213.2
|
-1.2%
|
827.3
|
877.7
|
2.1%
|
Adjusted
EBITDA
|
29.8
|
29.5
|
7.9%
|
111.7
|
99.4
|
21.1%
|
Adjusted EBITDA
Margin
|
15.3%
|
13.9%
|
1.4 p.p
|
13.5%
|
11.3%
|
2.2p.p.
|
Operating
Income/(loss)
|
(4.7)
|
4.1
|
N.M.
|
(18.0)
|
(1.4)
|
N.M.
|
Americas
Region
|
|
|
|
|
|
|
Revenue
|
167.0
|
150.6
|
15.5%
|
660.1
|
708.7
|
2.8%
|
Adjusted
EBITDA
|
(11.2)
|
6.7
|
N.M.
|
32.4
|
73.5
|
-51.9%
|
Adjusted EBITDA
Margin
|
(6.7)%
|
4.5%
|
N.M.
|
4.9%
|
10.4%
|
-5.5p.p.
|
Operating
Income/(loss)
|
(16.7)
|
7.3
|
N.M.
|
(25.9)
|
13.9
|
N.M.
|
EMEA
Region
|
|
|
|
|
|
|
Revenue
|
57.4
|
59.8
|
-1.1%
|
232.8
|
240.9
|
2.0%
|
Adjusted
EBITDA
|
4.1
|
2.8
|
49.5%
|
21.8
|
19.5
|
18.3%
|
Adjusted EBITDA
Margin
|
7.1%
|
4.7%
|
2.5p.p.
|
9.4%
|
8.1%
|
1.3p.p.
|
Operating
Income/(loss)
|
(22.3)
|
(1.4)
|
N.M.
|
(22.2)
|
-
|
N.M.
|
Brazil
Revenue at Atento's flagship operation decreased 1.2% to
$194.8 million in the fourth quarter
of 2019. Born-digital and healthcare clients primarily drove
Multisector sales 6.3% higher during the quarter and 2.8%
sequentially, while returned programs resulted in an 19.0% decrease
in Telefónica revenue. These verticals also accounted for a 6.4%
increase in full-year Multisector revenue, representing 72.6% of
total revenue, a 290 basis-point year-over-year expansion. This
increase was partially offset by a 7.7% decline in annual
Telefónica revenue, due to the returned programs. For the year,
revenue increased 2.1%.
Reported Adjusted EBITDA was $29.8
million, up 7.9% versus fourth quarter 2018, while the
corresponding margin was 15.3%. Excluding the effects of IFRS16 and
extraordinary items, the normalized adjusted EBITDA margin was
14.4%, up 50 basis points due to higher margins with born-digital
and healthcare clients.
For the year, the normalized Adjusted EBITDA margin was 11.1%,
20 basis points below the 2018 margin, due to lower margin programs
with telco programs during the first six months of the year. The
return of these programs is expected to contribute ~100 basis
points in Adjusted EBITDA margin in 2020.
Americas Region
Fourth quarter 2019 revenue in the Americas region increased
15.5% year-over-year to $167.0
million, with Multisector growth accelerating to 27.3%
during this period. Multisector revenue growth was mainly driven by
higher volumes from new and existing contracts, mostly in
Mexico and Colombia. Telefónica sales in the fourth
quarter decreased 7.6%, due to lower volumes in Chile and Peru.
For full-year 2019, revenue in the Americas increased 2.8% to
$660.1 million, with Multisector
revenue increasing 9.4% to 63.2% of the region's sales, a 470
basis-point gain. The increase in Multisector sales was due to the
same dynamics in Mexico and
Colombia. Telefónica revenues
decreased 6.9% during the year, mostly due to lower volumes in
Peru and Chile.
Reported Adjusted EBITDA in the fourth quarter was a negative
$11.2 million, with a corresponding
margin of negative 6.7%. Excluding the aforementioned extraordinary
items and impairment charge in Argentina, as well as the effect of IFRS16,
the Adjusted EBITDA margin would have increased 40 basis points to
9.0%, which is below potential given some of the new programs in
Mexico and Colombia are still ramping up.
For the year, Adjusted EBITDA in the Americas was $32.4 million, compared with $73.5 million in 2018. Over the same period, the
normalized Adjusted EBITDA margin decreased 110 basis points to
8.9%, due to lower Telefónica volumes in Peru and Chile and to the ramping up of new programs in
Mexico and Colombia.
EMEA Region
Revenue in the EMEA region declined 1.1% to $57.4 million in the fourth quarter of 2019. A
9.8% increase in Multisector sales, reflecting higher volumes in
programs acquired with existing clients throughout the year, was
more than offset by an 8.8% decrease in Telefónica revenues in the
region.
Full-year revenue increased 2.0% on Multisector growth of 10.3%
that reflects the fourth quarter dynamics, partially offset by a
3.5% decrease in Telefónica revenue. At year-end, Multisector
revenue accounted for 43.1% of total EMEA revenue, a 320
basis-point year-over-year increase.
EMEA's reported Adjusted EBITDA was $4.1
million in the fourth quarter, an increase of 49.5%, with a
corresponding margin of 7.1%. Excluding extraordinary items and the
effects of IFRS16, the Adjusted EBITDA margin would have increased
290 basis points to 7.6%, due to tighter control of indirect
costs.
For the year ended December 31,
2019, Adjusted EBITDA was $21.8
million, up 18.3% year-over-year. The 2019 normalized
Adjusted EBITDA margin was 230 basis points lower at 5.8%, due to
lower profitability in certain programs in the first half of the
year and to lower volumes at Telefónica throughout the year.
Cash Flow and Capital Structure
During the fourth quarter, free cash flow was $41.0 million, in line with prior year's
comparable quarter. Positive working capital stemming from the
recovery of a certain contract renegotiation and historical
positive seasonality in the quarter were partially offset by lower
EBITDA due to the aforementioned extraordinary items. Full-year
2019 free cash flow was negative $9.6
million, impacted by extraordinary items related to the
transformation plan and the $14.9
million in acquisitions related to the minority stakes that
the company did not have in Interfile and RBrasil.
Cash capex totaled 2.0% of fourth quarter revenue, positively
impacted by ~$20 million in payment
terms renegotiated with suppliers to 2020. For the year, total cash
capex was equivalent to 2.4% of 2019 revenue. Adjusting for this
carry-over, cash capex as percentage of revenues was 3.6%, in line
with provided guidance of 3.5% to 4.5%.
At December 31, 2019, Atento held
cash and cash equivalents of $124.7
million, which combined with approximately $95.0 million in available revolving credit
facilities, represented total liquidity of approximately
$200 million.
Atento's net debt at year-end was $408.0
million, excluding the $187.9
million effect of IFRS16, or $595.9
million under IFRS16. Reported net leverage was 3.9x, or
2.6x when excluding the aforementioned extraordinary items and
impairment charge as well as the effect of IFRS16.
Our ratings have been reaffirmed by both Fitch and Moody´s, with
the first one maintaining Atento's Long-term 'BB' rated debt with
Stable outlook, while the later affirmed its Ba3 rating also with
Stable outlook.
Share Repurchase Program
The Company repurchased 1.3 million shares for a total of
$3.4 million during the fourth
quarter. A total of 4.4 million shares were repurchased during the
year, for a total of $11.1
million.
On February 26, 2020, our Board of
Directors approved a new share buyback program, pursuant to the
program approved by shareholders on February
4, 2020. The program authorized by the Board of Directors is
limited to $30 million in up to 12
months, beginning March 2020. We
believe the share buyback program approved by the Board of
Directors attests management's confidence in our business prospects
moving forward.
Introducing Fiscal
2020 Guidance
Atento forecasts low
single-digit revenue growth in 2020, in constant-currency
terms.
Sales growth is expected to come from the acceleration of the
Company's digital business
with Multisector clients, while baseline volumes are expected to
continue declining,
particularly in the more massive CRM. EBITDA margin is expected to
be in the range of
12% to 13%, including the effects of IFRS16. For the year, cash
capex is expected to be
4.0% to 4.5% of revenues, above the level presented in the recent
years as the company
accelerates its digital offering.
|
Consolidated Revenue
Growth (CCY)
|
low
single-digit
|
EBITDA Margin Range
(CCY)
|
12.0% -
13.0%
|
Interest Expenses
(1)
|
($35 MM – $40
MM)
|
Cash Capex (as % of
Revenues)
|
4.0% -
4.5%
|
Environmental, Social and Governance
Atento has been implementing various environmental-related
initiatives. The program has been initiated in Brazil and we expect to roll-out to the other
countries we operate. During 2019, we delivered a series of results
in Brazil, including (i) 6%
reduction in water consumption, (ii) rainwater recycling
capabilities in all new sites, (iii) 60,000 common light bulbs
replaced by LED, (iv) 7% reduction in energy consumption, (v) 50%
of energy deriving from renewable sources, (vi) 70% reduction in
paper towel usage by installing hand driers, (vii) 1,000 tree
seedlings donated to preserve the Atlantic Forest and (viii) 100%
e-waste reutilization/recycling.
We are very proud of our culture to take care of our main asset,
our people. In 2019, Atento has been named one of the World's 25
Best Multinational Workplaces and one of the Best Multinationals to
Work for in Latin America by Great
Place to Work®. In Spain, we were
granted the Top Employer Award for the tenth consecutive year,
while in Brazil we were granted
this award for sixth consecutive year. Our employee experience
includes human values, opportunities and engagement propositions.
Our employees represent over 20 nationalities, with 64% being
female and 46% from generation Y. Over 60% of the opportunities we
have are fulfilled with internal promotions, while the level of
engagement of our employees surpasses 80%.
Conference Call
The Company will host a conference call and webcast on
Wednesday, March 4, 2019 at
10:00 am ET to discuss its financial
results. The conference call can be accessed by dialing: +1 (877)
407-3982 toll free domestic, UK: (+44) 0 800 756 3429 toll free,
Brazil: (+55) 0800 891 6221 toll
free, or Spain: (+34) 900 834 236
toll free. All other international callers can access the
conference call by dialing: +1 (201) 493-6780 toll free. No
passcode is required. Individuals who dial in will be asked to
identify themselves and their affiliations. The live webcast of the
conference call will be available on Atento's Investor Relations
website at investors.atento.com. A web-based archive of the
conference call will also be available at the above website.
About Atento
Atento is the largest provider of customer relationship
management and business process outsourcing (CRM BPO) solutions in
Latin America, and among the top
five providers globally, based on revenues. Atento is also a
leading provider of nearshoring CRM/BPO services to companies that
carry out their activities in the United
States. Since 1999, the company has developed its business
model in 13 countries where it employs 150,000 people. Atento has
over 400 clients to whom it offers a wide range of CRM/BPO services
through multiple channels. Atento's clients are mostly leading
multinational corporations in sectors such as telecommunications,
banking and financial services, health, retail and public
administrations, in addition to born-digital ones, among others.
Atento´s shares trade under the symbol ATTO on the New York Stock
Exchange (NYSE). In 2019, Atento has been named one of the
World's 25 Best Multinational Workplaces and one of the Best
Multinationals to Work for in Latin
America by Great Place to Work®. For more information
visit www.atento.com.
Investor
Relations
Shay Chor
+ 55 11 3293-5926
shay.chor@atento.com
|
Investor
Relations
Fernando
Schneider
+ 55 11
3779-8119
fernando.schneider@atento.com
|
Media
Relations Pablo Sánchez Pérez
+34 670031347
pablo.sanchez@atento.com
|
Forward-Looking Statements
This press release contains forward-looking statements.
Forward-looking statements can be identified by the use of words
such as "may," "should," "expects," "plans," "anticipates,"
"believes," "estimates," "predicts," "intends," "continue" or
similar terminology. These statements reflect only Atento's current
expectations and are not guarantees of future performance or
results. These statements are subject to risks and uncertainties
that could cause actual results to differ materially from those
contained in the forward-looking statements. These risks and
uncertainties include, but are not limited to, competition in
Atento's highly competitive industries; increases in the cost of
voice and data services or significant interruptions in these
services; Atento's ability to keep pace with its clients' needs for
rapid technological change and systems availability; the continued
deployment and adoption of emerging technologies; the loss,
financial difficulties or bankruptcy of any key clients; the
effects of global economic trends on the businesses of Atento's
clients; the non-exclusive nature of Atento's client contracts and
the absence of revenue commitments; security and privacy breaches
of the systems Atento uses to protect personal data; the cost of
pending and future litigation; the cost of defending Atento against
intellectual property infringement claims; extensive regulation
affecting many of Atento's businesses; Atento's ability to protect
its proprietary information or technology; service interruptions to
Atento's data and operation centers; Atento's ability to retain key
personnel and attract a sufficient number of qualified employees;
increases in labor costs and turnover rates; the political,
economic and other conditions in the countries where Atento
operates; changes in foreign exchange rates; Atento's ability to
complete future acquisitions and integrate or achieve the
objectives of its recent and future acquisitions; future
impairments of our substantial goodwill, intangible assets, or
other long-lived assets; and Atento's ability to recover consumer
receivables on behalf of its clients. In addition, Atento is
subject to risks related to its level of indebtedness. Such risks
include Atento's ability to generate sufficient cash to service its
indebtedness and fund its other liquidity needs; Atento's ability
to comply with covenants contained in its debt instruments; the
ability to obtain additional financing; the incurrence of
significant additional indebtedness by Atento and its subsidiaries;
and the ability of Atento's lenders to fulfill their lending
commitments. Atento is also subject to other risk factors described
in documents filed by the company with the United States Securities
and Exchange Commission.
These forward-looking statements speak only as of the date on
which the statements were made. Atento undertakes no obligation to
update or revise publicly any forward-looking statements, whether
as a result of new information, future events or otherwise.
SELECTED FINANCIAL DATA:
The following selected financial information should be read in
conjunction with the interim consolidated financial statements and
the section entitled "Management's Discussion and Analysis of
Financial Condition and Results of Operations" presented elsewhere
in the Form 6-K.
Reconciliation of
EBITDA and Adjusted EBITDA to profit/(loss):
|
|
|
For the year ended
December 31,
|
|
For the three
months ended
December 31,
|
($ in
millions)
|
|
2017
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/profit for
the period
|
|
(13.6)
|
|
20.5
|
|
(80.7)
|
|
15.0
|
|
(29.6)
|
Net finance
expense
|
|
93.5
|
|
55.6
|
|
57.1
|
|
(4.2)
|
|
6.9
|
Income tax expense
(a)
|
|
12.5
|
|
13.4
|
|
36.2
|
|
4.6
|
|
2.0
|
Depreciation and
amortization
|
|
104.4
|
|
95.2
|
|
140.8
|
|
23.6
|
|
41.4
|
EBITDA (non-GAAP)
(unaudited) (*)
|
|
196.9
|
|
184.8
|
|
153.4
|
|
39.0
|
|
20.7
|
Restructuring costs
(b)
|
|
16.8
|
|
-
|
|
-
|
|
-
|
|
-
|
Other (c)
|
|
7.3
|
|
-
|
|
-
|
|
-
|
|
-
|
Total
non-recurring items (**)
|
|
24.1
|
|
-
|
|
-
|
|
-
|
|
-
|
Adjusted EBITDA
(non-GAAP) (unaudited) (*)
|
|
221.0
|
|
184.8
|
|
153.4
|
|
39.0
|
|
20.7
|
|
|
(*)
|
For the year ended
December 31, 2019, the EBITDA was positively impacted in $58.1
million due to the first application of IFRS16. Excluding IFRS16
impact, the EBITDA was $95.3 million for the year ended December
31, 2019. Depreciation and finance costs were negatively impacted
in $49.3 million and $17.5 million, respectively, due to the
application of the IFRS16. For the three months ended December 31,
2019, the EBITDA was positively impacted in $17.9 million due to
the first application of IFRS16. Excluding IFRS16 impact, the
EBITDA was $2.8 million for the three months ended December 31,
2019. Depreciation and finance costs were negatively impacted in
$16.9 million and $4.5 million, respectively, due to the
application of the IFRS16.
|
|
|
(a)
|
For the year ended
December 31, 2019, in the context of a global Tax Audit of the
periods 2013-2016, Atento Spain, as the representative company of
the tax group comprised of the Spanish direct subsidiaries of
Atento S.A., signed a tax agreement with the Spanish tax
authorities. The criteria adopted by the Tax Administration was in
connection with certain aspects, among others, of the deductibility
of certain specific intercompany financing and operating expenses
originated during the acquisition of Atento Spain, which was
different from the tax treatment applied by the Company. As a
result of this discrepancy, the amount of the tax credits of the
Spanish tax group, together with the corresponding effects in
subsequent tax periods, has being reduced in an amount of $37.3
million.
|
|
|
|
Accordingly, the tax
credits for losses carryforward in our financial statements for the
year ended December 31, 2019, was negatively affected by $37.3
million.
|
|
|
(**)
|
We define
non-recurring items as items that are limited in number, clearly
identifiable, unusual, are unlikely to be repeated in the near
future in the ordinary course of business and that have a material
impact on the consolidate results of operations. Non-recurring
items can be summarized as demonstrated below:
|
|
|
(b)
|
Restructuring costs
primarily included restructuring activities and other personnel
costs that were not related to our core results of operations.
Restructuring costs for the year ended December 31, 2017, primarily
relate to the costs to adapt the organization in Argentina and
Brazil to the lower level of activities and the investments made in
Brazil, Mexico and Spain to implement a lower-cost operating
model.
|
|
|
(c)
|
Other non-recurring
items for the year ended December 31, 2017, mainly refer to
consulting and other non-recurring costs. In 2018 we did not have
any other non-recurring items.
|
|
|
(***)
|
These preliminary
results are unaudited and are based on management's initial review
of operations for the fourth quarter and year ended December 31,
2019 and remain subject to the completion of the Company's
customary annual closing and review procedures. Final adjustments
and other material developments may arise between the date hereof
and the filing of the Company's Annual Report on Form
20-F.
|
Reconciliation of
Adjusted Earnings to profit/(loss):
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended
December 31,
|
|
For the three
months
ended December 31,
|
($ in
millions)
|
2017
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
|
|
(Loss)/profit for
the period
|
(13.6)
|
|
20.5
|
|
(80.7)
|
|
15.0
|
|
(29.6)
|
Amortization of
acquisition related intangible assets (a)
|
22.4
|
|
21.2
|
|
20.6
|
|
5.1
|
|
5.5
|
Restructuring costs
(b) (*)
|
16.8
|
|
-
|
|
-
|
|
-
|
|
-
|
Change in fair value
of financial instruments (c)
|
(0.2)
|
|
-
|
|
-
|
|
-
|
|
-
|
Net foreign exchange
gain/(loss)
|
23.4
|
|
28.8
|
|
9.1
|
|
(2.3)
|
|
8.4
|
Financial
non-recurring (d)
|
17.7
|
|
-
|
|
-
|
|
-
|
|
-
|
Depreciation
non-recurring (e)
|
2.8
|
|
-
|
|
-
|
|
-
|
|
-
|
Tax effect
(f)
|
(18.2)
|
|
(11.3)
|
|
27.7
|
|
(1.6)
|
|
2.2
|
Other (g)
(*)
|
7.3
|
|
-
|
|
-
|
|
-
|
|
-
|
Total of
add-backs
|
72.0
|
|
38.7
|
|
57.4
|
|
1.2
|
|
16.1
|
Adjusted Earnings
(non-GAAP) (unaudited)
|
58.4
|
|
59.1
|
|
(23.3)
|
|
16.2
|
|
(13.5)
|
Adjusted Earnings
per share (in U.S. dollars) (**) (unaudited)
|
0.79
|
|
0.80
|
|
(0.32)
|
|
0.22
|
|
(0.19)
|
Adjusted Earnings
attributable to Owners of the parent (non-GAAP)
(unaudited)
|
55.2
|
|
57.2
|
|
(23.9)
|
|
15.7
|
|
(13.5)
|
Adjusted Earnings
per share attributable to Owners of the parent (in U.S. dollars)
(**) (unaudited)
|
0.75
|
|
0.77
|
|
(0.32)
|
|
0.21
|
|
(0.19)
|
|
|
(*)
|
We define
non-recurring items as items that are limited in number, clearly
identifiable, unusual, are unlikely to be repeated in the near
future in the ordinary course of business and that have a material
impact on the consolidated results of operations. Non-recurring
items can be summarized as demonstrated below:
|
|
|
(a)
|
Amortization of
acquisition related intangible assets represents the amortization
expense of customer base, recorded as intangible assets. This
customer base represents the fair value (within the business
combination involving the acquisition of control of Atento Group)
of the intangible assets arising from service agreements (tacit or
explicitly formulated in contracts) with Telefónica Group and with
other customers.
|
|
|
(b)
|
Restructuring costs
primarily included restructuring activities and other personnel
costs that were not related to our core results of operations.
Restructuring costs for the year ended December 31, 2017, primarily
relate to the costs to adapt the organization in Argentina and
Brazil to the lower level of activities and the investments made in
Brazil, Mexico and Spain to implement a lower-cost operating
model.
|
|
|
(c)
|
Since April 1, 2015,
the Company designated the foreign currency risk on certain of its
subsidiaries as net investment hedges using financial instruments
as the hedging items. As a consequence, any gain or loss on the
hedging instrument, related to the effective portion of the hedge
is recognized in other comprehensive income (equity) as from that
date. The gains or losses related to the ineffective portion are
recognized in the statements of operations and for comparability,
and those adjustments are added back to calculate Adjusted
Earnings.
|
|
|
(d)
|
Financial
non-recurring relates to the costs incurred in the debt refinance
process occurred in August 2017, which includes: (i) 2020 Senior
Secured Notes call premium of $11.1 million and amortization of
issuance costs of $4.9 million; (ii) Brazilian debentures due 2019
penalty fee of $0.7 million and remaining balance of the issuance
cost of $1.0 million. In 2018 and 2019 we did not have any
non-recurring financial expenses.
|
|
|
(e)
|
Non-recurring
depreciation relates to the provision for accelerated depreciation
of fixed assets in Puerto Rico and Mexico, due to the natural
disasters. In 2018 and 2019 we did not have any non-recurring
depreciation.
|
|
|
(f)
|
The tax effect
represents the impact of the taxable adjustments based on tax
nominal rate by country. For the year ended December 31, 2017, 2018
and 2019, the effective tax rate after moving non-recurring items
was 34.5%, 30.5% and 57.4%, respectively. For the three months
ended December 31, 2018 and 2019, the effective tax rate after
moving non-recurring items was 31.4% and 0.8%,
respectively.
|
|
|
|
For the year ended
December 31, 2019, in the context of a global Tax Audit of the
periods 2013-2016, Atento Spain, as the representative company of
the tax group comprised of the Spanish direct subsidiaries of
Atento S.A., signed a tax agreement with the Spanish tax
authorities. The criteria adopted by the Tax Administration was in
connection with certain aspects, among others, of the deductibility
of certain specific intercompany financing and operating expenses
originated during the acquisition of Atento Spain, which was
different from the tax treatment applied by the Company. As a
result of this discrepancy, the amount of the tax credits of the
Spanish tax group, together with the corresponding effects in
subsequent tax periods, has being reduced in an amount of $37.3
million.
|
|
|
(g)
|
Accordingly, the tax
credits for losses carryforward in our financial statements for the
year ended December 31, 2019, was negatively affected by $37.3
million.Other non-recurring items for the year ended December 31,
2017, mainly refer to consulting and other non-recurring costs. In
2018 and 2019 we did not have any other non-recurring
items.
|
|
|
(**)
|
Adjusted Earnings per
share is calculated based on weighted average number of ordinary
shares outstanding of 73,909,056, 73,841,447 and 72,622,844 as of
December 31, 2017, 2018 and 2019, respectively. And of 73,841,447
and 69,893,848 for the three months ended December 31, 2018 and
2019, respectively.
|
|
|
(***)
|
These preliminary
results are unaudited and are based on management's initial review
of operations for the fourth quarter and year ended December 31,
2019 and remain subject to the completion of the Company's
customary annual closing and review procedures. Final adjustments
and other material developments may arise between the date hereof
and the filing of the Company's Annual Report on Form
20-F.
|
Financing
Arrangements
|
Net debt with third
parties as of December 31, 2017, 2018 and 2019 is as
follow:
|
|
|
As of December
31,
|
($ in millions,
except Net Debt/Adj. EBITDA LTM)
|
2017
|
|
2018
|
|
2019
|
|
|
|
|
|
|
Cash and cash
equivalents
|
141.8
|
|
133.5
|
|
124.7
|
Debt:
|
|
|
|
|
|
Senior Secured
Notes
|
398.3
|
|
400.0
|
|
501.9
|
Brazilian
Debentures
|
21.1
|
|
14.7
|
|
-
|
BNDES
|
50.4
|
|
24.0
|
|
1.2
|
Financial Lease Payables
(3)
|
10.5
|
|
5.5
|
|
194.8
|
Other Borrowings
|
6.0
|
|
15.5
|
|
22.8
|
Total Debt
|
486.3
|
|
459.8
|
|
720.6
|
Net Debt with
third parties (1) (unaudited)
|
344.5
|
|
326.2
|
|
595.9
|
Adjusted
EBITDA LTM (2) (non-GAAP) (unaudited)
|
221.0
|
|
184.8
|
|
153.4
|
Net Debt/Adjusted
EBITDA LTM (non-GAAP) (unaudited)
|
1.6x
|
|
1.8x
|
|
3.9x
|
|
|
(1)
|
In considering our
financial condition, our management analyzes Net debt with third
parties, which is defined as total debt less cash and cash
equivalents. Net debt with third parties is not a measure defined
by IFRS and it has limitations as an analytical tool. Net debt with
third parties is neither a measure defined by or presented in
accordance with IFRS nor a measure of financial performance and
should not be considered in isolation or as an alternative
financial measure determined in accordance with IFRS. Net debt is
not necessarily comparable to similarly titled measures used by
other companies.
|
|
|
(2)
|
Adjusted EBITDA LTM
(Last Twelve Months) is defined as EBITDA adjusted to exclude
restructuring costs and other items not related to our core results
of operations. Excluding IFRS16, impairment of goodwill and
extraordinary items, the Net Debt is $408.0 million and EBITDA LTM
is $155.9 million, so leverage was 2.6x.
|
|
|
(3)
|
Consider
the impact in December 31, 2019 of application of IFRS16 (former
operating leases not related to short-term or low-value leases are
now shown as debt) was $187.9 million and $6.9 million of other
financial leases.
|
|
|
(4)
|
These preliminary
results are unaudited and are based on management's initial review
of operations for the fourth quarter and year ended December 31,
2019 and remain subject to the completion of the Company's
customary annual closing and review procedures. Final adjustments
and other material developments may arise between the date hereof
and the filing of the Company's Annual Report on Form
20-F.
|
Consolidated
Statements of Operations for the Three Months Ended December 31,
2018 and 2019
|
|
|
|
|
|
|
|
|
($ in millions,
except percentage changes)
|
For the three
months ended December 31,
|
|
Change
(%)
|
|
Change
excluding FX (%)
|
2018
|
|
2019
|
|
|
|
|
|
|
|
|
Revenue
|
421.8
|
|
417.2
|
|
(1.1)
|
|
4.8
|
Other operating
income
|
4.2
|
|
1.9
|
|
(55.6)
|
|
(55.1)
|
Other gains and own
work capitalized
|
0.2
|
|
3.5
|
|
N.M.
|
|
N.M.
|
Operating
expenses:
|
|
|
|
|
|
|
|
Supplies
|
(16.6)
|
|
(17.1)
|
|
3.4
|
|
6.0
|
Employee benefit
expenses
|
(318.9)
|
|
(314.3)
|
|
(1.4)
|
|
4.1
|
Depreciation
(2)
|
(4.7)
|
|
(24.1)
|
|
N.M.
|
|
N.M.
|
Amortization
|
(18.8)
|
|
(17.3)
|
|
(8.2)
|
|
(3.0)
|
Changes in trade
provisions
|
(0.6)
|
|
(0.3)
|
|
(46.9)
|
|
(43.8)
|
Impairment
charges
|
-
|
|
(30.9)
|
|
N.M.
|
|
N.M.
|
Other operating
expenses
|
(51.1)
|
|
(39.2)
|
|
(23.4)
|
|
(19.5)
|
Total operating
expenses
|
(410.8)
|
|
(443.3)
|
|
7.9
|
|
13.7
|
Operating
profit
|
15.4
|
|
(20.7)
|
|
N.M.
|
|
N.M.
|
Finance income
(3)
|
16.7
|
|
15.4
|
|
(7.4)
|
|
31.9
|
Finance costs
(4)
|
(14.7)
|
|
(14.0)
|
|
(5.3)
|
|
(2.6)
|
Net foreign exchange
gain/(loss)
|
2.3
|
|
(8.4)
|
|
N.M.
|
|
N.M.
|
Net finance
expense
|
4.2
|
|
(6.9)
|
|
N.M.
|
|
N.M.
|
Profit/(loss) before
income tax
|
19.6
|
|
(27.6)
|
|
N.M.
|
|
N.M.
|
Income tax
(expense)/benefit
|
(4.6)
|
|
(2.0)
|
|
(55.1)
|
|
(45.7)
|
Profit/(loss) for
the period
|
15.0
|
|
(29.6)
|
|
N.M.
|
|
N.M.
|
Profit/(loss)
attributable to:
|
|
|
|
|
|
|
|
Owners of the
parent
|
14.6
|
|
(29.6)
|
|
N.M.
|
|
N.M.
|
Non-controlling
interest
|
0.5
|
|
-
|
|
(100.0)
|
|
N.M.
|
Profit/(loss) for the
period
|
15.0
|
|
(29.6)
|
|
N.M.
|
|
N.M.
|
Other financial
data:
|
|
|
|
|
|
|
|
EBITDA (1)
(unaudited)
|
39.0
|
|
20.7
|
|
(46.9)
|
|
(41.1)
|
Adjusted EBITDA
(1) (unaudited)
|
39.0
|
|
20.7
|
|
(46.9)
|
|
(41.1)
|
|
|
(1)
|
For the
reconciliation of these non-GAAP measures to the closest comparable
IFRS measure, see section "Summary Consolidated Historical
Financial Information - Reconciliation of EBITDA and Adjusted
EBITDA to profit/(loss)".
|
|
|
(2)
|
Due to the initial
application of IFRS16 the depreciation was negatively impacted in
$12.8 million for three months ended in December 31,
2019.
|
|
|
(3)
|
For the three months
ended in December 31, 2018 and 2019 there is an impact of $10.6
million and $15.9 million, respectively, due to the application of
the IAS 29 - Financial Reporting in Hyperinflationary Economies and
related impacts under the application of IAS 21 - The Effects of
Changes in Foreign Exchange Rates for Argentina.
|
|
|
(4)
|
Due to the initial
application of IFRS16 the finance costs were negatively impacted in
$5.1 million for the three months ended December 31,
2019.
|
|
|
(5)
|
These preliminary
results are unaudited and are based on management's initial review
of operations for the fourth quarter and year ended December 31,
2019 and remain subject to the completion of the Company's
customary annual closing and review procedures. Final adjustments
and other material developments may arise between the date hereof
and the filing of the Company's Annual Report on Form
20-F.
|
|
N.M. means not
meaningful
|
Consolidated
Statements of Operations by Segment for the Year Ended December 31,
2017, 2018 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions,
except percentage changes)
|
For the year
ended
December 31,
|
|
Change
(%)
|
|
Change
Excluding FX (%)
|
|
For the year
ended December 31,
|
|
Change
(%)
|
|
Change
Excluding FX
(%)
|
2017
|
|
2018
|
|
|
|
2019
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil
|
944.8
|
|
877.7
|
|
(7.1)
|
|
5.9
|
|
827.3
|
|
(5.7)
|
|
2.1
|
Americas
|
758.0
|
|
708.7
|
|
(6.5)
|
|
3.5
|
|
660.1
|
|
(6.9)
|
|
2.8
|
EMEA
|
223.4
|
|
240.9
|
|
7.8
|
|
2.7
|
|
232.8
|
|
(3.3)
|
|
2.0
|
Other and
eliminations (1)
|
(5.0)
|
|
(9.1)
|
|
82.4
|
|
83.0
|
|
(12.9)
|
|
42.5
|
|
49.7
|
Total
revenue
|
1,921.3
|
|
1,818.2
|
|
(5.4)
|
|
4.3
|
|
1,707.3
|
|
(6.1)
|
|
2.1
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil
|
(899.2)
|
|
(847.6)
|
|
(5.7)
|
|
7.4
|
|
(807.4)
|
|
(4.7)
|
|
3.2
|
Americas
|
(734.6)
|
|
(701.4)
|
|
(4.5)
|
|
6.1
|
|
(679.5)
|
|
(3.1)
|
|
6.6
|
EMEA
|
(226.8)
|
|
(240.2)
|
|
5.9
|
|
1.1
|
|
(244.1)
|
|
1.6
|
|
7.5
|
Other and
eliminations (1)
|
15.0
|
|
41.0
|
|
N.M.
|
|
N.M.
|
|
21.4
|
|
(47.8)
|
|
(42.2)
|
Total operating
expenses
|
(1,845.7)
|
|
(1,748.2)
|
|
(5.3)
|
|
4.5
|
|
(1,709.7)
|
|
(2.2)
|
|
6.2
|
Operating
profit/(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil
|
55.5
|
|
33.1
|
|
(40.3)
|
|
(32.2)
|
|
21.1
|
|
(36.3)
|
|
(31.7)
|
Americas
|
31.5
|
|
21.5
|
|
(31.5)
|
|
(31.4)
|
|
(18.2)
|
|
N.M.
|
|
N.M.
|
EMEA
|
(1.8)
|
|
2.5
|
|
N.M.
|
|
N.M.
|
|
1.2
|
|
(52.8)
|
|
(49.3)
|
Other and
eliminations (1)
|
7.2
|
|
32.3
|
|
N.M.
|
|
N.M.
|
|
8.6
|
|
(73.5)
|
|
(70.9)
|
Total operating
profit
|
92.4
|
|
89.5
|
|
(3.2)
|
|
5.9
|
|
12.6
|
|
(85.9)
|
|
(84.5)
|
Net finance
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil
|
(33.0)
|
|
(30.3)
|
|
(8.3)
|
|
5.2
|
|
(46.5)
|
|
53.4
|
|
66.4
|
Americas
|
(13.2)
|
|
(5.5)
|
|
(58.1)
|
|
28.5
|
|
(5.6)
|
|
1.4
|
|
35.8
|
EMEA
|
(16.8)
|
|
(1.6)
|
|
(90.4)
|
|
(90.7)
|
|
(1.4)
|
|
(12.7)
|
|
(6.6)
|
Other and
eliminations (1)
|
(30.4)
|
|
(18.1)
|
|
(40.3)
|
|
(38.7)
|
|
(3.6)
|
|
(80.2)
|
|
(80.0)
|
Total net finance
expense
|
(93.5)
|
|
(55.6)
|
|
(40.5)
|
|
(25.7)
|
|
(57.1)
|
|
2.7
|
|
10.9
|
Income tax
benefit/(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil
|
(8.8)
|
|
(1.4)
|
|
(83.9)
|
|
(81.8)
|
|
7.4
|
|
N.M.
|
|
N.M.
|
Americas
|
(9.7)
|
|
(2.1)
|
|
(78.8)
|
|
(84.6)
|
|
(2.0)
|
|
(0.3)
|
|
(7.1)
|
EMEA
|
5.0
|
|
(0.9)
|
|
(117.8)
|
|
(118.5)
|
|
(22.0)
|
|
N.M.
|
|
N.M.
|
Other and
eliminations (1)(3)
|
0.9
|
|
(9.0)
|
|
N.M.
|
|
N.M.
|
|
(19.6)
|
|
116.7
|
|
129.0
|
Total income tax
(expense)/benefit
|
(12.5)
|
|
(13.4)
|
|
7.0
|
|
11.9
|
|
(36.2)
|
|
N.M.
|
|
N.M.
|
Profit/(loss) for
the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil
|
13.7
|
|
1.4
|
|
(89.7)
|
|
(88.5)
|
|
(18.0)
|
|
N.M.
|
|
N.M.
|
Americas
|
8.6
|
|
13.9
|
|
62.5
|
|
(53.4)
|
|
(25.9)
|
|
N.M.
|
|
N.M.
|
EMEA
|
(13.6)
|
|
-
|
|
100.2
|
|
(100.2)
|
|
(22.2)
|
|
N.M.
|
|
N.M.
|
Other and
eliminations (1)
|
(22.2)
|
|
5.1
|
|
(123.0)
|
|
(123.1)
|
|
(14.6)
|
|
N.M.
|
|
N.M.
|
(Loss)/profit for
the period
|
(13.6)
|
|
20.5
|
|
N.M.
|
|
N.M.
|
|
(80.7)
|
|
N.M.
|
|
N.M.
|
Profit/(loss)
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the
parent
|
(16.8)
|
|
18.5
|
|
N.M.
|
|
N.M.
|
|
(81.3)
|
|
N.M.
|
|
N.M.
|
Non-controlling
interest
|
3.2
|
|
1.9
|
|
(39.6)
|
|
(26.5)
|
|
0.6
|
|
(68.5)
|
|
N.M.
|
Other financial
data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil
|
112.4
|
|
83.5
|
|
(25.7)
|
|
(15.5)
|
|
96.9
|
|
16.0
|
|
25.2
|
Americas
|
69.1
|
|
56.2
|
|
(18.6)
|
|
(14.2)
|
|
30.7
|
|
(45.3)
|
|
(40.5)
|
EMEA
|
7.6
|
|
12.3
|
|
61.8
|
|
44.4
|
|
17.0
|
|
38.5
|
|
46.7
|
Other and
eliminations (1)
|
7.8
|
|
32.8
|
|
N.M.
|
|
N.M.
|
|
8.8
|
|
(73.1)
|
|
(70.4)
|
Total EBITDA
(unaudited)
|
196.9
|
|
184.8
|
|
(6.2)
|
|
2.2
|
|
153.4
|
|
(17.0)
|
|
(9.9)
|
Adjusted EBITDA
(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil
|
124.7
|
|
99.4
|
|
(20.3)
|
|
(12.0)
|
|
111.7
|
|
12.4
|
|
21.1
|
Americas
|
83.5
|
|
73.5
|
|
(12.0)
|
|
(9.7)
|
|
32.4
|
|
(55.9)
|
|
(51.9)
|
EMEA
|
14.8
|
|
19.5
|
|
31.6
|
|
36.3
|
|
21.8
|
|
11.9
|
|
18.3
|
Other and
eliminations (1)
|
(2.0)
|
|
(7.6)
|
|
N.M.
|
|
N.M.
|
|
(12.6)
|
|
65.5
|
|
61.5
|
Total Adjusted
EBITDA (unaudited)
|
221.0
|
|
184.8
|
|
(16.4)
|
|
(9.2)
|
|
153.4
|
|
(17.0)
|
|
(9.9)
|
|
|
(1)
|
Included revenue and
expenses at the holding-company level (such as corporate expenses
and acquisition related expenses), as applicable, as well as
consolidation
adjustments.
|
|
|
(2)
|
For the
reconciliation of these non-GAAP measures to the closest comparable
IFRS measure, see section "Summary Consolidated Historical
Financial Information - Reconciliation of EBITDA and Adjusted
EBITDA to profit/(loss)".
|
|
|
(3)
|
For the year ended
December 31, 2019, in the context of a global Tax Audit of the
periods 2013-2016, Atento Spain, as the representative company of
the tax group comprised of the Spanish direct subsidiaries of
Atento S.A., signed a tax agreement with the Spanish tax
authorities. The criteria adopted by the Tax Administration was in
connection with certain aspects, among others, of the deductibility
of certain specific intercompany financing and operating expenses
originated during the acquisition of Atento Spain, which was
different from the tax treatment applied by the Company. As a
result of this discrepancy, the amount of the tax credits of the
Spanish tax group, together with the corresponding effects in
subsequent tax periods, has being reduced in an amount of $37.3
million.
|
|
|
(4)
|
These preliminary
results are unaudited and are based on management's initial review
of operations for the fourth quarter and year ended December 31,
2019 and remain subject to the completion of the Company's
customary annual closing and review procedures. Final adjustments
and other material developments may arise between the date hereof
and the filing of the Company's Annual Report on Form
20-F.
|
|
|
N.M. means not
meaningful
|
Consolidated
Statements of Operations by Segment for the Three Months Ended
December 31, 2018 and 2019
|
|
|
|
|
|
|
|
|
($ in millions,
except percentage changes)
|
For the three
months ended December 31,
|
|
Change
(%)
|
|
Change
Excluding FX (%)
|
2018
|
|
2019
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Brazil
|
213.2
|
|
194.8
|
|
(8.6)
|
|
(1.2)
|
Americas
|
150.6
|
|
167.0
|
|
10.9
|
|
15.5
|
EMEA
|
59.8
|
|
57.4
|
|
(4.1)
|
|
(1.1)
|
Other and
eliminations (1)
|
(1.8)
|
|
(2.0)
|
|
13.8
|
|
19.8
|
Total
revenue
|
421.8
|
|
417.2
|
|
(1.1)
|
|
4.8
|
Operating
expenses:
|
|
|
|
|
|
|
|
Brazil
|
(202.4)
|
|
(191.1)
|
|
(5.6)
|
|
2.1
|
Americas
|
(160.6)
|
|
(193.8)
|
|
20.7
|
|
25.1
|
EMEA
|
(61.7)
|
|
(64.5)
|
|
4.6
|
|
7.7
|
Other and
eliminations (1)
|
13.9
|
|
6.1
|
|
(56.1)
|
|
(49.7)
|
Total operating
expenses
|
(410.8)
|
|
(443.3)
|
|
7.9
|
|
13.7
|
Operating
profit/(loss):
|
|
|
|
|
|
|
|
Brazil
|
11.2
|
|
4.5
|
|
(59.6)
|
|
(56.7)
|
Americas
|
(7.7)
|
|
(26.4)
|
|
N.M.
|
|
N.M.
|
EMEA
|
(1.2)
|
|
(2.8)
|
|
136.2
|
|
134.7
|
Other and
eliminations (1)
|
13.1
|
|
4.0
|
|
(69.7)
|
|
(65.1)
|
Total operating
profit
|
15.4
|
|
(20.7)
|
|
N.M.
|
|
N.M.
|
Net finance
expense:
|
|
|
|
|
|
|
|
Brazil
|
(3.6)
|
|
(10.5)
|
|
N.M.
|
|
N.M.
|
Americas
|
12.7
|
|
8.9
|
|
(30.0)
|
|
4.1
|
EMEA
|
0.1
|
|
(0.6)
|
|
N.M.
|
|
N.M.
|
Other and
eliminations (1)
|
(5.0)
|
|
(4.7)
|
|
(5.5)
|
|
(4.5)
|
Total net finance
expense
|
4.2
|
|
(6.9)
|
|
N.M.
|
|
N.M.
|
Income tax
benefit/(expense):
|
|
|
|
|
|
|
|
Brazil
|
(3.5)
|
|
1.3
|
|
(138.1)
|
|
(140.7)
|
Americas
|
2.2
|
|
0.7
|
|
(67.2)
|
|
(72.8)
|
EMEA
|
(0.3)
|
|
(18.8)
|
|
N.M.
|
|
N.M.
|
Other and
eliminations (1)(3)
|
(3.0)
|
|
14.7
|
|
N.M.
|
|
N.M.
|
Total income tax
(expense)/benefit
|
(4.6)
|
|
(2.0)
|
|
(55.1)
|
|
(45.7)
|
Profit/(loss) for
the period:
|
|
|
|
|
|
|
|
Brazil
|
4.1
|
|
(4.7)
|
|
N.M.
|
|
N.M.
|
Americas
|
7.3
|
|
(16.7)
|
|
N.M.
|
|
N.M.
|
EMEA
|
(1.4)
|
|
(22.3)
|
|
N.M.
|
|
N.M.
|
Other and
eliminations (1)
|
5.2
|
|
14.0
|
|
N.M.
|
|
N.M.
|
(Loss)/profit for
the period
|
15.0
|
|
(29.6)
|
|
N.M.
|
|
N.M.
|
Profit/(loss)
attributable to:
|
|
|
|
|
|
|
|
Owners of the
parent
|
14.6
|
|
(29.6)
|
|
N.M.
|
|
N.M.
|
Non-controlling
interest
|
0.5
|
|
-
|
|
(100.0)
|
|
N.M.
|
Other financial
data:
|
|
|
|
|
|
|
|
EBITDA
(2):
|
|
|
|
|
|
|
|
Brazil
|
23.9
|
|
26.7
|
|
11.7
|
|
20.2
|
Americas
|
1.0
|
|
(13.1)
|
|
N.M.
|
|
N.M.
|
EMEA
|
1.1
|
|
3.1
|
|
N.M.
|
|
N.M.
|
Other and
eliminations (1)
|
13.0
|
|
4.0
|
|
(68.9)
|
|
(64.2)
|
Total EBITDA
(unaudited)
|
39.0
|
|
20.7
|
|
(46.9)
|
|
(41.1)
|
Adjusted EBITDA
(2):
|
|
|
|
|
|
|
|
Brazil
|
29.5
|
|
29.8
|
|
0.8
|
|
7.9
|
Americas
|
6.7
|
|
(11.2)
|
|
N.M.
|
|
N.M.
|
EMEA
|
2.8
|
|
4.1
|
|
42.7
|
|
49.5
|
Other and
eliminations (1)
|
(0.1)
|
|
(1.9)
|
|
N.M.
|
|
56.1
|
Total Adjusted
EBITDA (unaudited)
|
39.0
|
|
20.7
|
|
(46.9)
|
|
(41.1)
|
|
|
(1)
|
Included revenue and
expenses at the holding-company level (such as corporate expenses
and acquisition related expenses), as applicable, as well as
consolidation adjustments.
|
|
|
(2)
|
For the
reconciliation of these non-GAAP measures to the closest comparable
IFRS measure, see section "Summary Consolidated Historical
Financial Information - Reconciliation of EBITDA and Adjusted
EBITDA to profit/(loss)".
|
|
|
(3)
|
For the year ended
December 31, 2019, in the context of a global Tax Audit of the
periods 2013-2016, Atento Spain, as the representative company of
the tax group comprised of the Spanish direct subsidiaries of
Atento S.A., signed a tax agreement with the Spanish tax
authorities. The criteria adopted by the Tax Administration was in
connection with certain aspects, among others, of the deductibility
of certain specific intercompany financing and operating expenses
originated during the acquisition of Atento Spain, which was
different from the tax treatment applied by the Company. As a
result of this discrepancy, the amount of the tax credits of the
Spanish tax group, together with the corresponding effects in
subsequent tax periods, has being reduced in an amount of $37.3
million.
|
|
|
(4)
|
These preliminary
results are unaudited and are based on management's initial review
of operations for the fourth quarter and year ended December 31,
2019 and remain subject to the completion of the Company's
customary annual closing and review procedures. Final adjustments
and other material developments may arise between the date hereof
and the filing of the Company's Annual Report on Form
20-F.
|
|
|
N.M. means not
meaningful
|
ATENTO S.A. AND
SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION
|
As of December 31,
2018 and 2019
|
(In thousands of
U.S. dollars, unless otherwise indicated)
|
|
|
|
|
|
|
|
December
31,
|
ASSETS
|
|
2018
|
|
2019
|
|
|
(audited)
|
|
(unaudited)
|
NON-CURRENT
ASSETS
|
|
716,886
|
|
775,219
|
|
|
|
|
|
Intangible
assets
|
|
211,202
|
|
160,041
|
Goodwill
|
|
154,989
|
|
119,902
|
Right-of-use
assets
|
|
-
|
|
182,264
|
Property, plant and
equipment
|
|
123,940
|
|
116,193
|
Non-current financial
assets
|
|
95,531
|
|
91,538
|
Trade and other
receivables
|
|
19,148
|
|
22,124
|
Other non-current
financial assets
|
|
65,070
|
|
54,652
|
Derivative financial
instruments
|
|
11,313
|
|
14,762
|
Other taxes
receivable
|
|
6,061
|
|
5,650
|
Deferred tax
assets
|
|
125,163
|
|
99,631
|
|
|
|
|
|
CURRENT
ASSETS
|
|
496,467
|
|
547,512
|
|
|
|
|
|
Trade and other
receivables
|
|
342,075
|
|
388,308
|
Trade and other
receivables
|
|
315,654
|
|
359,599
|
Current income tax
receivable
|
|
26,421
|
|
28,709
|
Derivative financial
instruments
|
|
-
|
|
8,740
|
Other taxes
receivable
|
|
19,975
|
|
24,664
|
Other current
financial assets
|
|
891
|
|
1,094
|
Cash and cash
equivalents
|
|
133,526
|
|
124,706
|
|
|
|
|
|
TOTAL
ASSETS
|
|
1,213,353
|
|
1,322,731
|
|
ATENTO S.A. AND
SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION
|
As of December 31,
2018 and 2019
|
(In thousands of
U.S. dollars, unless otherwise indicated)
|
|
|
|
|
|
|
|
December
31,
|
EQUITY AND
LIABILITIES
|
|
2018
|
|
2019
|
|
|
(audited)
|
|
(unaudited)
|
TOTAL
EQUITY
|
|
340,092
|
|
207,020
|
EQUITY ATTRIBUTABLE
TO:
|
|
|
|
|
NON-CONTROLLING
INTEREST
|
|
8,541
|
|
-
|
OWNERS OF THE PARENT
COMPANY
|
|
331,551
|
|
207,020
|
|
|
|
|
|
Share
capital
|
|
49
|
|
49
|
Reserve for
acquisition of non-controlling interest
|
|
(23,531)
|
|
-
|
Share
premium
|
|
615,288
|
|
619,461
|
Treasury
shares
|
|
(8,178)
|
|
(19,224)
|
Retained
losses
|
|
(16,325)
|
|
(127,070)
|
Translation
differences
|
|
(257,122)
|
|
(271,036)
|
Hedge accounting
effects
|
|
8,404
|
|
(8,872)
|
Stock-based
compensation
|
|
12,966
|
|
13,711
|
|
|
|
|
|
NON-CURRENT
LIABILITIES
|
|
528,869
|
|
774,268
|
|
|
|
|
|
Deferred tax
liabilities
|
|
30,221
|
|
20,378
|
Debt with third
parties
|
|
408,426
|
|
679,397
|
Derivative financial
instruments
|
|
682
|
|
11,669
|
Provisions and
contingencies
|
|
51,174
|
|
48,326
|
Non-trade
payables
|
|
14,391
|
|
11,744
|
Option for the
acquisition of non-controlling interest
|
|
20,830
|
|
-
|
Other taxes
payable
|
|
3,145
|
|
2,754
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
344,392
|
|
341,443
|
|
|
|
|
|
Debt with third
parties
|
|
51,342
|
|
41,217
|
Derivative financial
instruments
|
|
-
|
|
8,907
|
Trade and other
payables
|
|
274,000
|
|
272,548
|
Trade
payables
|
|
76,912
|
|
71,677
|
Income tax
payables
|
|
10,615
|
|
12,671
|
Other taxes
payables
|
|
78,511
|
|
93,765
|
Other non-trade
payables
|
|
107,962
|
|
94,435
|
Provisions and
contingencies
|
|
19,050
|
|
18,771
|
TOTAL EQUITY AND
LIABILITIES
|
|
1,213,353
|
|
1,322,731
|
|
(1)
|
These preliminary
results are unaudited and are based on management's initial
review
of operations for the fourth quarter and year ended December 31,
2019 and remain
subject to the completion of the Company's customary annual closing
and review
procedures. Final adjustments and other material developments may
arise between the
date hereof and the filing of the Company's Annual Report on Form
20-F.
|
Free Cash Flow
|
For the three
months ended December 31,
|
|
For the year ended
December 31,
|
($ in
millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(unaudited)
(***)
|
|
(unaudited)
(***)
|
Operating Cash
Flow (1)
|
50.5
|
|
55.7
|
|
125.1
|
|
150.4
|
Cash Capex
(2)
|
(8.3)
|
|
(2.8)
|
|
(41.1)
|
|
(41.2)
|
Income Tax
Paid
|
2.0
|
|
(7.8)
|
|
(31.3)
|
|
(20.4)
|
Free Cash Flow
before interest and acquisitions
|
44.2
|
|
45.2
|
|
52.7
|
|
88.8
|
Acquisitions
|
0.0
|
|
0.0
|
|
(14.9)
|
|
0.0
|
Net Financial
Expenses (3)
|
(3.2)
|
|
(4.2)
|
|
(47.3)
|
|
(48.8)
|
Free Cash Flow
(FCF)
|
41.0
|
|
41.0
|
|
(9.6)
|
|
40.0
|
|
|
(1)
|
We define Operating
Cash flow as Net Cash flow from/(used in) operating activities (as
per 6K) adding back net interest and income tax
expenses.
|
|
|
(2)
|
Does not consider
acquisitions
|
|
|
(3)
|
Interest payments
related to the 2022 SSN are done every February and August, until
Bond maturity in August 2022. Therefore, settlement of hedging
instruments will impact Q1 and Q3 Net Financial Expenses cashflow
of each year.
|
|
|
(4)
|
These preliminary
results are unaudited and are based on management's initial review
of operations for the fourth quarter and year ended December 31,
2019 and remain subject to the completion of the Company's
customary annual closing and review procedures. Final adjustments
and other material developments may arise between the date hereof
and the filing of the Company's Annual Report on Form
20-F.
|
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SOURCE Atento S.A.