SÃO PAULO, Nov. 10, 2020 /PRNewswire/ -- EMBRAER S.A. (NYSE: ERJ; B3: EMBR3) releases its Third Quarter 2020 Earnings Results.
HIGHLIGHTS
- Embraer delivered 7 commercial jets and 21 executive jets (19 light / 2 large) in 3Q20, and the Company's firm order backlog at the end of the quarter was US$ 15.1 billion;
- Excluding special items, adjusted EBIT and EBITDA were US$ (45.3) million and US$ (0.6) million, respectively, negatively impacted by weak Commercial Aviation results, yielding adjusted EBIT margin of -6.0% and adjusted EBITDA margin of -0.1%;
- The 3Q20 results include total net positive special items of US$ 7.6 million: 1) restructuring expenses of US$ 54.0 million related to the voluntary and non-voluntary dismissal programs announced in September, 2) negative provisions for expected credit losses during the Covid-19 pandemic of US$ 13.0 million, 3) reversal of previous impairment in the Executive Jets business which positively impacted results by US$ 15.9 million, and 4) reversal of previous impairment in the Commercial Aviation business which positively impacted results by US$ 58.7 million;
- Adjusted net loss (excluding special items and deferred income tax and social contribution) in 3Q20 was US$ (148.3) million, with Adjusted loss per ADS of US$ (0.81);
- Embraer reported Free cash flow of US$ (566.5) million in 3Q20, still affected by working capital increases (particularly higher inventories) largely in Commercial Aviation;
- Embraer's liquidity remains solid as the Company finished the quarter with total cash of US$ 2.2 billion, higher than the US$ 2.0 billion in cash at the end of 2Q20 despite the negative free cash flow in 3Q20. The Company successfully issued US$ 750 million in bonds with maturity in 2028, using US$ 250 million of the proceeds to prepay portions of its 2022 and 2023 bonds, while adding US$ 500 million in liquidity. Embraer's liability management during 3Q20 resulted in the average debt maturity increasing from 3.8 to 4.5 years;
- Due to continued uncertainty related to the COVID-19 pandemic, financial and deliveries guidance for the Company's 2020 results remains suspended at this point.
MAIN FINANCIAL INDICATORS
in millions of U.S dollars, except % and earnings per share data |
||||
2Q20 |
3Q19 |
3Q20 |
YTD20 |
|
Revenue |
537.2 |
1,175.6 |
758.7 |
1,929.7 |
EBIT |
(342.4) |
(20.8) |
(37.7) |
(427.1) |
EBIT margin % |
-63.7% |
-1.8% |
-5.0% |
-22.1% |
Adjusted EBIT |
(140.5) |
(20.8) |
(45.3) |
(177.2) |
Adjusted EBIT margin % |
-26.2% |
-1.8% |
-6.0% |
-9.2% |
EBITDA |
(221.1) |
18.2 |
(0.6) |
(212.4) |
EBITDA margin % |
-41.2% |
1.5% |
-0.1% |
-11.0% |
Adjusted EBITDA |
(120.4) |
18.2 |
(8.2) |
(63.7) |
Adjusted EBITDA margin % |
-22.4% |
1.5% |
-1.1% |
-3.3% |
Adjusted net income (Loss) 2 |
(198.8) |
(48.4) |
(148.3) |
(451.1) |
Adjusted earnings (losses) per share - ADS basic |
(1.0801) |
(0.2631) |
(0.8058) |
(2.4510) |
Net income (loss) attributable to Embraer Shareholders |
(315.3) |
(77.2) |
(121.2) |
(728.6) |
Earnings (losses) per share - ADS basic (US$) |
(1.7131) |
(0.4197) |
(0.6585) |
(3.9587) |
Adjusted free cash flow |
(472.2) |
(257.4) |
(566.5) |
(1,715.2) |
Net debt |
(1,800.7) |
(1,347.2) |
(2,365.1) |
(2,365.1) |
For additional information, please check the full document on our website ri.embraer.com.br
INVESTOR RELATIONS
Eduardo Couto, Chris Thornsberry, Caio Pinez, Nádia Santos, and Viviane Pinheiro.
(+55 11) 3040-6874
[email protected]
ri.embraer.com.br
CONFERENCE CALL INFORMATION
Embraer will host a conference call to present its 3Q20 Results on Tuesday, November 10, 2020 at 11:00 AM (SP) / 9:00 AM (NY). The conference call will also be broadcast live over the web at ri.embraer.com.br
Conference ID: EMBRAER
Telephones USA / Canada: +1 (412) 717-9627 / +1 (844) 204-8942
Telephones U.K.: +44 20 3795-9972
Telephones Brazil: +55 (11) 4210-1803 / +55 (11) 3181-8565
SOURCE Embraer S.A.
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