Mills: Positive free cash flow of R$ 116 million in a challenging year

RIO DE JANEIRO, March 11, 2015 /PRNewswire/ -- Mills Estruturas e Servicos de Engenharia S.A. (Mills) presented in 2014 R$ 794.2 million of net revenues and free cash flow of R$ 116.1 million. This is the first time Mills achieved positive cash generation, after years of high investments, which enabled its organic growth, geographic expansion, and mainly, its leadership in its markets.

Mills started facing new challenges in 2014. Uncertainties in the economy and in the political sphere have had negative impacts on the markets where it operates, since its clients have reduced investments, postponed projects and slowed the pace of construction works. This market behavior influenced directly its performance, and the investment and tactical plans were revised and adjusted to the new scenario.

With the political and economic scenario still marked by uncertainties in 2015, we will focus our efforts on improving operational efficiency, in order to increase our profitability and become more competitive. We are prepared for a challenging year, with a more suitable corporate structure, comfortable levels of liquidity and a competent and committed team to search for business opportunities, synergies and value creation for our clients.

The highlights of Mill's performance in 2014 were:

• Rental revenues of R$ 663.3 million, at a similar level to 2013.
• Net revenues of R$ 794.2 million, 4.6% below 2013, negatively impacted by a reduction in revenues from sales and technical assistance.
• Record net revenue of R$ 370.8 million in the Rental business unit, 3.8% higher than 2013.
• EBITDA of R$ 335.7 million, with a year-over-year reduction of 16.7% due to higher maintenance costs and allowance for doubtful debts.
• Net earnings of R$ 64.3 million, negatively impacted by higher depreciation and financial expenses.
• Excluding non-recurring effects, EBITDA would total R$ 350.2 million, with EBITDA margin of 44.1%, and net earnings would reach R$ 81.7 million.
• Return on invested capital (ROIC) of 6.6%, or 7.5% excluding non-recurrent effects, against 14.1% in 2013.
• Capex of R$ 199.1 million, of which R$ 172.1 million for rental equipment.
• Positive free cash flow of R$ 116.1 million, of which R$ 118.7 million in the second half of 2014.
• Opening of four new Rental branches, totaling 30 branches in the end of 2014.
• Nominated for the "Pioneer of motorized access" award, in the IAPA Awards.

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This press release may include declarations about Mills' expectations regarding future events or results. All declarations based upon future expectations, rather than historical facts, are subject to various risks and uncertainties. Mills cannot guarantee that such declarations will prove to be correct. These risks and uncertainties include factors related to the following: the Brazilian economy, capital markets, infrastructure, real estate and oil & gas sectors, among others, and governmental rules that are subject to change without previous notice. To obtain further information on factors that may give rise to results different from those forecasted by Mills, please consult the reports filed with the Brazilian Comissao de Valores Mobiliarios (CVM).

SOURCE Mills Estruturas e Servicos de Engenharia S.A.

Related Links

http://www.mills.com.br/ri