StoneCo Ltd. (Nasdaq: STNE) (“Stone” or the “Company”), a leading
provider of financial technology solutions that empower merchants
to conduct commerce seamlessly across multiple channels, today
reported its financial results for the second quarter of 2019.
To our shareholders: In the second quarter of 2019, we
accelerated the Company’s growth while advancing our strategy of
building a complete ecosystem for merchants, combining technology
and high-level service to offer payments, banking, credit and
software to our clients.
Our results demonstrate that we have a solid relationship with
our clients based on our value proposition, and we are able to
maintain this during times in which the industry is solely focused
on prices. As a result of higher investments in our operations, we
added a record number of net new clients in the second quarter and
continue to gain market share while maintaining a stable take
rate.
Our long-term vision is to offer merchants a wide array of
services they need to start, run and grow their businesses, either
online or offline. We are building an ecosystem of solutions that
range from financial services and management software to tools that
enhance merchants' ability to sell online, as well as operational
support such as last-mile logistics.
Finally, in addition to our ongoing success in the SMB market,
we are very excited to announce that we are entering the large and
growing micro-merchant space through a Joint Venture with Grupo
Globo, the largest media conglomerate in Brazil. The Joint Venture
will combine Stone’s technology and payments experience with Grupo
Globo’s deep expertise in media and marketing.
Thank you for your continued support,Thiago
Piau, CEO
Operating and Financial Highlights
Main Operating and Financial Metrics |
2Q19 |
2Q18 |
|
Δ |
|
1H19 |
1H18 |
|
Δ |
TPV (R$ billions) |
29.8 |
18.5 |
|
60.6% |
|
56.2 |
35.1 |
|
60.3% |
Active Clients (thousands) |
360.2 |
200.6 |
|
79.5% |
|
360.2 |
200.6 |
|
79.5% |
Period Net Additions (thousands) |
50.5 |
39.9 |
|
26.5% |
|
91.1 |
69.4 |
|
31.3% |
Take Rate |
1.85% |
1.86% |
|
(0.01 p.p.) |
|
1.85% |
1.77% |
|
0.08 p.p. |
Total Revenue and Income (R$ millions) |
586.2 |
347.7 |
|
68.6% |
|
1,122.0 |
635.7 |
|
76.5% |
Adjusted Net Income (R$ millions) |
194.0 |
71.1 |
|
172.8% |
|
380.3 |
97.6 |
|
289.5% |
Adjusted Net Margin |
33.1% |
20.5% |
|
12.6 p.p. |
|
33.9% |
15.4% |
|
18.5 p.p. |
Total
Revenue and Income |
|
Net
Addition of Active Clients |
+68.6% |
|
50.5 K |
Total Revenue and Income was R$586.2 |
|
Total Active Clients were 360.2 thousand, an |
million, an increase of 68.6% year over year |
|
increase of 79.5% year over year, with a record net |
|
|
addition of 50.5 thousand clients in 2Q19 |
|
|
|
Adjusted Net Income |
|
Adjusted Net Margin |
R$ 194.0 MM |
|
33.1% |
an increase of 172.8% year over year |
|
an increase of 12.6 percentage points year over year |
|
|
|
Net Income |
|
Net Margin |
R$ 171.9 MM |
|
29.3% |
an increase of 172.7% year over year |
|
an increase of 11.2 percentage points year over year |
|
|
|
Total Payment Volume (TPV) |
|
Take Rate |
R$ 29.8 BN |
|
1.85% |
up 60.6% or R$11.2 billion year over year |
|
roughly stable vs 1Q19 and 2Q18 |
Important Developments for Our Strategy Roadmap in
2Q19
Acquiring, Banking and Credit
We have surpassed R$100 billion in TPV in the last 12 months,
achieving approximately 7% market share of the acquiring market in
Brazil.
Despite our larger scale, our growth accelerated in 2Q19, with
strong increase in TPV and revenue, as well as a record Net
Addition of Active Clients, which has grown continuously in each
month of the quarter.
Our Active Client Base continues to expand, both in cities where
we have longstanding presence and in less mature cities. As an
example, in 2019 YTD, the market share in our 30 more mature cities
have increased by more than 20%, while the market share in our 30
less mature cities has increased by 5 times.
Charts 1 and 2: Market Share Growth in
Cities Where Stone is Present (in number of merchants, indexed to
100)1 (see PDF)
Given the strong performance of our business in 2019 and the
huge opportunities in front of us, we have increased investments in
our operations.
The opportunity to provide funding to SMBs – either through
prepayment or credit – is huge. Our credit solution is ramping-up
fast and exceeding our expectations. Since we started offering
credit solutions in March 2019, we have already provided loans to
more than 3,000 clients as of July with a total disbursed volume
exceeding R$50 million. We believe we have around 1% market share
in this specific offering in Brazil.
_____________________________1 More mature cities are the
30 largest market shares Stone had in Jan/17. Less mature cities
are the 30 lowest market shares in Dec/18. Market share estimate
based on Neoway database for total merchants in each city.
Chart 3: Number of Clients with
Credit (see PDF)Chart 4: Evolution in Number
of Credit Clients Within 2Q19 (see PDF)
We also recently obtained a license from the Central Bank to
offer credit ("SCD") using our equity, which gives us more
flexibility to grow our credit offering in the future.
We continue to expand our banking pilot, testing new features
and services with a growing number of accounts. At the end of the
second quarter, we had more than 10,000 open accounts, despite
having not yet officially launched the platform. Customer feedback
to date has been strongly positive. The banking platform is a
strategic priority for us, and we will continue to invest with
discipline in this high-growth opportunity. We are focused on
building out this solution by adding new features to provide a
better and more comprehensive experience for our clients.
Software
Our software strategy, which is aimed at providing tools to help
our clients better manage their businesses and increase their
sales, is progressing as expected. These solutions create
opportunities for more engagement with our clients, deepening our
relationship with them and creating greater client stickiness.
During the second quarter of 2019, we began the roll-out of some
of our software solutions in our hubs all over Brazil. We have seen
strong traction in those solutions, adding hundreds of new clients
every day.
Overall, the number of subscribed clients in software has grown
quickly, from approximately 32,000 in 1Q19 to approximately 70,000
in July 2019. This growth has been almost entirely
organic.
In addition to our food service and small retail verticals, we
recently entered the beauty salon segment, with an omnichannel,
cloud-based scheduling and management software
platform.
Joint Venture with Grupo Globo in the Micro-Merchant
Space
Since the fourth quarter of 2018, Stone has been testing a
solution for micro-merchants, who have been increasingly adopting
card-based payments in Brazil. There are over 21 million
micro-merchants2 in the country. A significant number of them are
unbanked and have a low penetration of card-based transactions,
representing a significant greenfield opportunity. Addressing this
opportunity requires significant investments in media and, most
importantly, deep knowledge and expertise in marketing and
advertising.
On July 30th, Stone announced a partnership with Grupo Globo to
create a heavyweight financial technology player focused on serving
micro-merchants. This Joint Venture (JV) brings together the vast
media and marketing know-how of Brazil's largest media group with
Stone's expertise in technology, payments and financial services,
as well as its execution capabilities. The JV will be owned 33% by
Grupo Globo and 67% by Stone. The transaction is subject to certain
conditions, including approval by the anti-trust authorities.
Caio Fiuza will move from his current role of Director of
Operations at Stone into the role of CEO for the JV. Stone will
appoint a dedicated team from its talent pool to focus on this new
endeavor.
In addition to its complementary knowledge and expertise, Grupo
Globo will contribute with an upfront investment equivalent to a
market value of R$461 million in media, while Stone will provide
its technology and payment processing capabilities, operational
support and management resources, as well as R$50 million in
cash.
Through its diversified media properties, Grupo Globo reaches
more than 100 million unique Brazilians daily, almost half of the
country's population. Grupo Globo controls the country's leading
free-to-air television network, the country's largest portfolio of
pay-TV networks, and leading digital assets. Its internet business
is the top source of local and international news, sports and
entertainment content in Brazil.
"The partnership with Stone will give us the opportunity to join
forces and create a showcase in financial services that is powered
by our wide reach and deep knowledge of the Brazilian customer,"
said Jorge Nobrega, CEO of Grupo Globo.
"We welcome our new partners and feel very confident in
addressing this opportunity together with the dedicated and
high-quality team at Grupo Globo," said Thiago Piau, CEO of
Stone.
_____________________________2 Comprising only autonomous
self-employed workers, both independent informal entrepreneurs
“PFs” as well as formal micro-businesses “MEIs”.
Exhibit 1: Stone Partnering with Grupo
Globo (see PDF)
Operating and Financial Metrics
Table 1: Operating Metrics
Main Operating and Financial Metrics |
2Q19 |
2Q18 |
|
Δ |
|
1H19 |
1H18 |
|
Δ |
TPV (R$ billions) |
29.8 |
18.5 |
|
60.6% |
|
56.2 |
35.1 |
|
60.3% |
Active Clients (thousands) |
360.2 |
200.6 |
|
79.5% |
|
360.2 |
200.6 |
|
79.5% |
Period Net Additions (thousands) |
50.5 |
39.9 |
|
26.5% |
|
91.1 |
69.4 |
|
31.3% |
Take Rate |
1.85% |
1.86% |
|
(0.01 p.p.) |
|
1.85% |
1.77% |
|
0.08 p.p. |
Our performance exceeded our expectations in the second quarter
of 2019. At the beginning of the quarter, we began increasing
investments in our operations, especially in our hub and software
strategies. Those investments have already started showing results,
with growth performance improving in each month of the second
quarter.
We are pleased to see accelerating growth in our business in
2Q19, in particular:
- Total Payment Volume (TPV) was R$29.8 billion, a 60.6% increase
from the prior-year period, with accelerated growth rate despite a
tougher comparable quarter in 2Q18.
- Total Active Clients reached 360,200. Our Net Addition of
Active Clients was a record of 50,500 in 2Q19, compared with 40,600
added in 1Q19, representing a strong acceleration in Net Addition
of SMB clients. Given this positive trend in the quarter, and our
incremental investments in our operations, we expect Net Additions
to remain strong throughout the year. Additionally, we believe the
new Joint Venture with Grupo Globo will soon start contributing to
Net Additions as we reach out to autonomous workers and
micro-merchants.
Chart 5: Active Client Base (Thousands)
(see PDF)Chart 6: Net Additions of Active Clients
per Quarter (Thousands) (see PDF)Chart 7: Net
Additions of Active Clients per Month (Thousands) (see
PDF)
Our Take Rate in the quarter was roughly stable at 1.85%. Even
though many in our industry seem solely focused on prices, we
continue to build relationships and win new clients based on our
strong value proposition.
Chart 8: Evolution of Take Rate (see
PDF)
Table 2: Quarterly Statement of Profit or
Loss
Income Statement (R$mm) |
2Q19 |
% Rev. |
2Q18 |
% Rev. |
|
Δ % |
Δ p.p. |
Net revenue from transaction activities and other services |
177.3 |
30.2% |
113.9 |
32.7% |
|
55.7% |
(2.5 p.p.) |
Net revenue from subscription services and equipment rental |
74.6 |
12.7% |
46.5 |
13.4% |
|
60.3% |
(0.7 p.p.) |
Financial income |
297.2 |
50.7% |
183.5 |
52.8% |
|
62.0% |
(2.1 p.p.) |
Other financial income |
37.1 |
6.3% |
3.8 |
1.1% |
|
879.0% |
5.2 p.p. |
Total revenue and
income |
586.2 |
100.0% |
347.7 |
100.0% |
|
68.6% |
0.0 p.p. |
Cost of services |
(100.8) |
(17.2%) |
(70.2) |
(20.2%) |
|
43.5% |
3.0 p.p. |
Administrative expenses |
(77.4) |
(13.2%) |
(58.4) |
(16.8%) |
|
32.4% |
3.6 p.p. |
Selling expenses |
(87.3) |
(14.9%) |
(43.7) |
(12.6%) |
|
99.5% |
(2.3 p.p.) |
Financial expenses, net |
(78.8) |
(13.4%) |
(74.0) |
(21.3%) |
|
6.4% |
7.9 p.p. |
Other operating income (expense), net |
(32.3) |
(5.5%) |
(15.7) |
(4.5%) |
|
106.3% |
(1.0 p.p.) |
(Loss) Income from investment in associates |
(0.5) |
(0.1%) |
(0.3) |
(0.1%) |
|
107.5% |
(0.0 p.p.) |
Profit before income
taxes |
209.1 |
35.7% |
85.3 |
24.5% |
|
145.1% |
11.1 p.p. |
Income tax and social contribution |
(37.3) |
(6.4%) |
(22.3) |
(6.4%) |
|
67.2% |
0.1 p.p. |
Net income for the
period |
171.9 |
29.3% |
63.0 |
18.1% |
|
172.7% |
11.2 p.p. |
|
|
|
|
|
|
|
|
Adjusted Net Income |
194.0 |
33.1% |
71.1 |
20.5% |
|
172.8% |
12.6 p.p. |
Table 3: Semesterly Statement of Profit or
Loss
Income Statement (R$mm) |
1H19 |
% Rev. |
1H18 |
% Rev. |
|
Δ % |
Δ p.p. |
Net revenue from transaction activities and other services |
346.0 |
30.8% |
204.1 |
32.1% |
|
69.5% |
(1.3 p.p.) |
Net revenue from subscription services and equipment rental |
145.8 |
13.0% |
85.0 |
13.4% |
|
71.5% |
(0.4 p.p.) |
Financial income |
548.6 |
48.9% |
333.1 |
52.4% |
|
64.7% |
(3.5 p.p.) |
Other financial income |
81.5 |
7.3% |
13.6 |
2.1% |
|
500.6% |
5.1 p.p. |
Total revenue and
income |
1,122.0 |
100.0% |
635.7 |
100.0% |
|
76.5% |
0.0 p.p. |
Cost of services |
(186.2) |
(16.6%) |
(141.1) |
(22.2%) |
|
32.0% |
5.6 p.p. |
Administrative expenses |
(142.1) |
(12.7%) |
(117.4) |
(18.5%) |
|
21.1% |
5.8 p.p. |
Selling expenses |
(150.0) |
(13.4%) |
(81.4) |
(12.8%) |
|
84.2% |
(0.6 p.p.) |
Financial expenses, net |
(145.4) |
(13.0%) |
(142.6) |
(22.4%) |
|
2.0% |
9.5 p.p. |
Other operating income (expense), net |
(43.8) |
(3.9%) |
(20.8) |
(3.3%) |
|
110.5% |
(0.6 p.p.) |
(Loss) Income from investment in associates |
(0.5) |
(0.0%) |
(0.4) |
(0.1%) |
|
39.9% |
0.0 p.p. |
Profit before income
taxes |
454.0 |
40.5% |
132.1 |
20.8% |
|
243.6% |
19.7 p.p. |
Income tax and social contribution |
(105.1) |
(9.4%) |
(44.4) |
(7.0%) |
|
136.5% |
(2.4 p.p.) |
Net income for the
period |
348.9 |
31.1% |
87.7 |
13.8% |
|
297.8% |
17.3 p.p. |
|
|
|
|
|
|
|
|
Adjusted Net Income |
380.3 |
33.9% |
97.6 |
15.4% |
|
289.5% |
18.5 p.p. |
Total Revenue and Income
Total Revenue and Income was R$586.2 million in the second
quarter of 2019, an increase of 68.6% from R$347.7 million in the
second quarter of 2018. Total Revenue and Income growth was driven
primarily by the 60.6% increase in TPV.
Chart 9: Total Revenue and Income
(Quarter) (see PDF)Chart 10: Total Revenue and Income
(Semester) (see PDF)
Net Revenue from Transaction Activities and Other
ServicesNet Revenue from Transaction Activities and Other
Services was R$177.3 million in the second quarter of 2019, an
increase of 55.7%, compared with the second quarter of 2018. This
increase was primarily due to the R$11.2 billion growth in TPV year
over year.
Net Revenue from Subscription Services and Equipment
RentalNet Revenue from Subscription Services and Equipment
Rental was R$74.6 million in the second quarter of 2019, 60.3%
above the second quarter of 2018. This increase was primarily due
to the higher number of SMB active clients.
Financial IncomeFinancial Income was R$297.2
million in the second quarter of 2019, an increase of 62.0% year
over year, primarily because of the 60.6% growth in TPV year over
year combined with a higher prepayment penetration in Stone’s
volumes.
Other Financial IncomeOther Financial Income
was R$37.1 million in the second quarter of 2019, an increase of
R$33.3 million compared with the second quarter of 2018. This
increase was mainly due to the interest income from the IPO
proceeds on Stone’s cash balance and short-term investments.
Costs and Expenses
As a consequence of higher investments in the operation,
Operating Costs and Expenses as a percentage of Total Revenue and
Income increased to 45.3% from 39.7% in the first quarter of
2019.
Chart 11: Operating Leverage* (see
PDF)* Includes Cost of Services, Administrative Expenses
and Selling Expenses as a percentage of Total Revenue and Income.
Quarterly unaudited data.
Cost of ServicesCost of Services was R$100.8
million or 17.2% of Total Revenue and Income in 2Q19. This
represented an increase of 3.0 percentage points in positive
operating leverage versus 2Q18, mainly due to efficiency gains
related to the Company’s proprietary operating platform and human
resources.
Compared to 1Q19, Cost of Services increased as a percentage of
Total Revenue and Income to 17.2% from 15.9%, mainly due to higher
logistics and customer service expenses, as the Company increased
its investments in its operations, and higher provisions and
losses.
Administrative ExpensesAdministrative Expenses
were R$77.4 million in the second quarter of 2019, up 32.4% year
over year. As a percentage of Total Revenue and Income,
Administrative Expenses were 3.6 percentage points down, as the
Company gains positive operating leverage from its personnel and
facilities expenses.
Compared with 1Q19, Administrative Expenses increased by 1.1
percentage point, mainly because of higher Third-Party Services and
Travel Expenses, related to our annual sales convention, that
brought together our sales, customer service and logistics
teams.
Selling ExpensesSelling Expenses were R$87.3
million in the quarter, an increase of 99.5% versus 2Q18, mainly
due to higher personnel expenses. Compared with 1Q19, Selling
Expenses increased to 14.9% of Total Revenue and Income from 11.7%,
mainly related to the hiring of new sales people, based on the
Company’s strategy to increase investments in the operation.
Financial Expenses, NetFinancial Expenses, Net
were R$78.8 million in the second quarter of 2019, an increase of
6.4%, compared with 2Q18. This increase was mainly due to higher
prepayment volumes, which were mostly offset by higher use of cash
to fund our prepayment operations. Financial Expenses, Net as a
percentage of Financial Income decreased to 26.5% in the second
quarter of 2019 compared with 40.3% in the second quarter of 2018.
This reduction occurred due to the combination of (i) a higher
financial income and (ii) a lower cost of funds due to lower base
rate, cheaper funding sources, and use of a higher amount of
Company cash to fund prepayment operations.
Financial Expenses, Net, increased 18.2% versus 1Q19, in line
with Financial Income growth.
Other Operating Expenses, NetOther Operating
Expenses, Net were R$32.3 million in the second quarter of 2019, an
increase of R$16.7 million from the second quarter of 2018. This
increase was mainly driven by share-based compensation expenses in
the amount of R$28.4 million, related to (i) one-time IPO grants,
which are booked over time, according to the different vesting
periods of each grant and (ii) follow-on acceleration of vesting.
These awards are equity classified and the majority are subject to
performance conditions.
Profit Before Income TaxesProfit Before Income
Taxes was R$209.1 million in the second quarter of 2019,
representing 145.1% growth year over year, with a pre-tax margin of
35.7% compared with 24.5% in the second quarter of 2018. This
improvement was mainly related to the increase in Total Revenue and
Income in addition to operating leverage in Cost of Services,
Administrative Expenses and Financial Expenses.
Income Tax and Social ContributionDuring the
second quarter of 2019, the Company incurred R$37.3 million in
Income Tax and Social Contribution expenses, or a 17.8% effective
tax rate, compared with a 27.7% tax rate in 1Q19. The lower tax
rate is mainly due to IOC tax benefits (Juros Sobre Capital
Próprio) and R&D expenses (such as Lei do Bem).
Net Income
Adjusted Net Income was R$194.0 million in the second quarter of
2019, with a margin of 33.1%, compared with R$71.1 million and a
margin of 20.5% in the second quarter of 2018. The main factors
that contributed to the growth in Adjusted Net Income were: (i)
increase in Total Revenue and Income, primarily due to higher TPV;
(ii) operating leverage in Cost of Services and Administrative
Expenses; and (iii) reduced cost of funds, as the Company switched
to cheaper funding and increased the use of Company cash to fund
the prepayment operation.
Chart 12: Adjusted Net Income in the
Quarter (R$mm) (see PDF)Chart 13: Adjusted Net Margin in the
Quarter (see PDF)Chart 14: Adjusted Net
Income in the Semester (R$mm) (see PDF)Chart
15: Adjusted Net Margin in the Semester (see PDF)
Net Income was R$171.9 million in 2Q19, compared with Net Income
of R$63.0 million in 2Q18. Net Margin increased 11.2 percentage
points to 29.3% year over year in the second quarter of 2019. This
improvement was mainly due to the operating leverage of 4.3
percentage points in the quarter, combined with a reduction of 7.9
percentage points in Financial Expenses, Net, as a percentage of
Total Revenue and Income.
Reconciliation of Net Income to Adjusted Net
Income
Table 4: Adjusted Net Income Reconciliation
(Quarter)
Net Income Bridge (R$mm) |
2Q19 |
% Rev. |
2Q18 |
% Rev. |
|
Δ % |
Δ p.p. |
Net income for the period |
171.9 |
29.3% |
63.0 |
18.1% |
|
172.7% |
11.2 p.p. |
Share-based compensation expenses (1) |
28.4 |
4.8% |
0.0 |
0.0% |
|
n.a. |
4.8 p.p. |
Amortization of fair value adjustment (2) |
4.3 |
0.7% |
2.8 |
0.8% |
|
54.9% |
(0.1 p.p.) |
One-time impairment charges (3) |
0.0 |
0.0% |
8.4 |
2.4% |
|
(100.0%) |
(2.4 p.p.) |
Tax effect on adjustments |
(10.5) |
(1.8%) |
(3.1) |
(0.9%) |
|
236.9% |
(0.9 p.p.) |
Adjusted net income |
194.0 |
33.1% |
71.1 |
20.5% |
|
172.8% |
12.6 p.p. |
Table 5: Adjusted Net Income Reconciliation
(Semester)
Net Income Bridge (R$mm) |
1H19 |
% Rev. |
1H18 |
% Rev. |
|
Δ % |
Δ p.p. |
Net income for the period |
348.9 |
31.1% |
87.7 |
13.8% |
|
297.8% |
17.3 p.p. |
Share-based compensation expenses (1) |
38.5 |
3.4% |
0.0 |
0.0% |
|
n.a. |
3.4 p.p. |
Amortization of fair value adjustment (2) |
8.1 |
0.7% |
5.5 |
0.9% |
|
46.2% |
(0.1 p.p.) |
One-time impairment charges (3) |
0.0 |
0.0% |
8.4 |
1.3% |
|
(100.0%) |
(1.3 p.p.) |
Tax effect on adjustments |
(15.2) |
(1.4%) |
(4.1) |
(0.6%) |
|
273.9% |
(0.7 p.p.) |
Adjusted net income |
380.3 |
33.9% |
97.6 |
15.4% |
|
289.5% |
18.5 p.p. |
- Consists of expenses related to the vesting of share-based
compensation.
- On intangibles related to acquisitions. Consists of expenses
resulting from the amortization of the fair value adjustment on
intangible assets and property and equipment as a result of the
application of the acquisition method, a significant portion of
which relate to the EdB acquisition.
- Consists of (i) impairment charges associated with certain
processing system intangible assets acquired in the EdB acquisition
that we no longer use, in an amount of R$6.4 million in 2Q18, and
(ii) impairment associated with improvements made to certain leased
office space upon the termination of the lease, in an amount of
R$2.0 million for 2Q18.
Cash Flow
Note on the impact of different funding
sources in operating and financing cash flows
A natural consequence of TPV growth is the
corresponding increase in both Accounts Receivable from Card
Issuers and Accounts Payable to Clients. When the Company makes a
prepayment to its clients as part of its working capital solutions
offering, it reduces accounts payable by the corresponding prepaid
amount plus fees earned by providing such prepayment service. In
order to fund the prepayment operation, the Company predominantly
uses one of the following sources of funding: (i) the sale of its
receivables from card issuers to third-party banks or financial
institutions, (ii) the issuance of senior quotas by FIDCs to
institutional investors, (iii) the issuance of debentures and
private loans or (iv) its own capital from capital contributions or
cash flows from operations. These funding options lead to different
effects on the Company’s statements of balance sheet and cash
flows:
- Sale of receivables: the true sale of receivables results in
the derecognition of Accounts Receivable from Card Issuers. As a
result, when a prepayment operation is funded through the true sale
of receivables, both Accounts Receivable from Card Issuers and
Accounts Payable to Clients are derecognized from the balance sheet
in the same amount and the combined effect to the cash flows is a
positive operational cash flow equivalent to net fees earned by
providing such prepayment service.
- Issuance of FIDC senior quotas3: when the Company launches a
new FIDC in order to raise capital, the amount raised from senior
quota holders less structuring and transaction costs will be
recognized on its balance sheet as cash and as a liability to
senior quota holders. The Company then transfers its receivables
from card issuers in its operating subsidiary to the FIDC and uses
the cash to fund the prepayment operations. As a result of
consolidating the FIDC in the Company’s financial statements, the
Accounts Receivable from Card Issuers held by the FIDC remain on
its consolidated balance sheet. This set of transactions generates
a positive impact on the Company’s cash flows from financing
activities in the amount received by the FIDC from senior quota
holders less structuring and transaction costs. However, since
Accounts Receivable from Card Issuers remains on the balance sheet
but the Accounts Payable to Clients are derecognized, these
transactions also cause a negative impact on our cash flow from
operations.
- Debentures and private loans: when the Company issues a
debenture or takes a private loan, the effect on the Company’s
statements of balance sheet and cash flows is similar the issuance
of FIDC senior quotas.
- Deployment of the Company’s capital: when the Company uses its
own capital to fund prepayment operations, it does not sell its
receivables from card issuers and they remain on its balance sheet.
However, its Accounts Payable to Clients are derecognized, and
therefore these transactions cause a negative impact on the
Company’s cash flow from operations.
_____________________________3 Receivables Investment Fund
(Fundo de Investimento em Direitos Creditórios), an investment fund
legal structure established under Brazilian law designed
specifically for investing in credit rights receivables
Net Cash Used in Operating Activities
Net Cash Used in Operating Activities for 2Q19 was R$1,883.6
million, primarily as a result of:
- Net Income of R$171.9 million, combined with non-cash expenses
consisting primarily of (i) Deferred Income Tax Expenses of R$35.7
million; (ii) Depreciation and Amortization of R$34.1 million;
(iii) Other Financial Costs and Foreign Exchange, net of R$28.9
million; (iv) Allowance for Doubtful Accounts of R$15.7 million,
and (v) Share Based Payment Expenses of R$8.9 million. The total
amount of adjustments to Net Income from non-cash items in the
three months ended June 30, 2019 was R$111.0 million.
- Net cash from changes in working capital, arising from changes
in operating assets and liabilities, totaled an outflow of
R$2,166.5 million, principally due to: i. an increase
in the balance of Accounts Receivable from Card Issuers, which led
to negative cash flows of R$2,128.2 million; a decrease in Accounts
Payable to Clients of R$228.4 million; Interest Paid of R$66.1
million; an increase in Recoverable Taxes of R$56.9 million; and
Income Tax Paid in the amount of R$41.4 million; ii.
The impact of these factors was partially offset by Interest Income
Received, Net of Costs of R$313.2 million and an increase in Taxes
Payable in the amount of R$76.1 million.
- The negative cash flow from the increase in Accounts Receivable
from Card Issuers was mainly related to: (i) the increase in TPV,
which naturally increases the Accounts Receivable from Card Issuers
and also the Accounts Payable to Clients and, especially, (ii) the
change of funding mix for the prepayment operation by decreasing
the amount of receivables sold to financial institutions and
increasing the use of debt capital market structures, such as
FIDCs, debentures and loans, which are not deducted from Accounts
Receivable from Card Issuers. During the second quarter, we raised
a new series of FIDC in the market in the amount of R$1.62 billion,
in addition to a new debenture in the total amount of R$400 million
(R$250 million liquidated in the second quarter and R$150 million
liquidated in the third quarter).
Net Cash Used in Operating Activities for 2Q18 was R$138.1
million, primarily as a result of:
- Net Income of R$63.0 million, combined with non-cash expenses
consisting primarily of (i) Other Financial Costs and Foreign
Exchange, Net of R$35.1 million; (ii) Depreciation and Amortization
of R$22.7 million; and (iii) Loss on Disposal of Property,
Equipment and Intangible Assets in the amount of R$9.5 million. The
total amount of adjustments to Net Income from non-cash items in
the three months ended June 30, 2018 was R$70.2 million.
- Net cash from changes in working capital, arising from changes
in operating assets and liabilities, totaled an outflow of R$271.3
million, mainly due to: i. An increase in Accounts
Receivable from Card Issuers which led to negative cash flows of
R$256.2 million; Interest Paid in the amount of R$75.5 million; an
increase in Recoverable Taxes of R$53.9 million; and a decrease in
Accounts Payable to Clients in the amount of R$51.4 million.
ii. All of the above were partially offset by Interest
Income Received, Net of Costs in the amount of R$131.1 million and
an increase in Taxes Payable of R$43.8 million.
Adjusted Net Cash Provided by Operating
Activities
Because of the nature of the prepayment business and dynamics of
the sale of receivables in Brazil, Stone management looks at
Adjusted Net Cash Provided by/ (Used in) Operating Activities, a
non-IFRS metric. This metric excludes three working capital
adjustments4 shown in our Consolidated Statement of Cash Flow: (i)
changes in Accounts Payable to Clients; (ii) changes in Accounts
Receivables from Card Issuers; and (iii) the Interest Income
Received, Net of Costs, which is shown separately in our Cash Flow
Statement but is directly linked to the change in our Accounts
Receivable from Card Issuers and Accounts Payable to Clients in our
balance sheet.
Table 6: Adjusted Net Cash Provided by Operating
Activities
Adjusted Net Cash Provided by Operating Activities
(R$mm) |
2Q19 |
2Q18 |
|
1H19 |
1H18 |
Net cash used in operating activities |
(1,883.6) |
(138.1) |
|
(2,178.5) |
(373.0) |
(-) Adjustments in operating activities: |
|
|
|
|
|
Accounts receivable from card issuers |
2,128.2 |
256.2 |
|
3,302.8 |
683.4 |
Accounts payable to clients |
228.4 |
51.4 |
|
(241.4) |
32.1 |
Interest income received, net of costs |
(313.2) |
(131.1) |
|
(547.9) |
(217.3) |
(=) Adjusted net cash provided by operating
activities |
159.6 |
38.4 |
|
335.0 |
125.2 |
In 2Q19 Net Cash Used in Operating Activities was R$ 1,883.6
million. Excluding the effect of changes in Accounts Receivables
from Card Issuers of R$2,128.2 million, changes in Accounts Payable
to Clients of R$228.4 million and Interest Income Received, Net of
Costs, of R$313.2 million, our Adjusted Net Cash Provided by
Operating Activities was R$159.6 million, compared with R$38.4
million in 2Q18.
The R$313.2 million Interest Income Received, Net of Costs,
consists of two items: (i) financial income from our prepayment
activity, less (ii) financial expenses related to the sale of
receivables. The first item has direct influence on the level of
Accounts Payable to Clients in our balance sheet; the second item
has direct influence on the amount of Accounts Receivables from
Card Issuers on our balance sheet.
_____________________________4 Each “Accounts Payable to
Clients” recognized as a liability on our balance sheet is directly
linked to an “Accounts Receivable from Card Issuers” recognized as
an asset in our balance sheet. Originally, the Company received
from issuing banks first, and only then paid its clients, thus
having no working capital requirement. When a client opts to be
paid early (prepayment), the Company has a working capital
requirement. However, the Company has the option itself to sell the
receivables from card issuers related to those payables in order to
meet such working capital requirements. The combined effect to the
cash flows is a positive operational cash flow equivalent to net
fees earned by providing such prepayment service. Whenever
management opts to fund its prepayment operation with sources other
than the sale of its own receivables, Net Cash Provided by/ (Used
in) Operating Activities may be affected, as discussed in “Note on
the impact of different funding sources in operating and financing
cash flows” at the beginning of the Cash Flow section. However,
management does not view such decision as translating into higher
or lower ability of our business to generate cash
operationally.
Net Cash Used in Investing Activities
Net Cash Used in Investing Activities was R$104.7 million for
2Q19, compared with R$46.9 million of Net Cash Used in Investing
Activities in 2Q18. Net Cash Used in Investing Activities for 2Q19
was primarily driven by (i) Purchases of Property and Equipment of
R$62.4 million related mainly to POS purchases, (ii) Acquisition of
Short-term Investments, net of R$18.8 million; and (iii) Purchases
and Development of Intangible Assets of R$17.7 million mainly due
to Development.
Net Cash Provided by Financing Activities
Net Cash Provided by Financing Activities was R$2,063.2 million
for 2Q19, compared with R$4.9 million for 2Q18. Net Cash Provided
by Financing Activities for 2Q19 was mainly driven by (i) R$1.62
billion raised by FIDC AR II; and (ii) R$450 million from borrowing
proceeds, comprising R$250 million from a new Debenture raised by
the Company in the total amount of R$400 million (R$250 million
liquidated in 2Q19 and R$150 million in 3Q19) and R$200 million
from the issuance of a CCB (Cédula de Crédito Bancário).
Adjusted Free Cash Flow
The Company defines Adjusted Free Cash Flow, a non-IFRS metric,
as Net Cash Provided by/ (Used in) Operating Activities, reduced by
Purchases of Property and Equipment, Purchases and Development of
Intangible Assets, less the effects from working capital
adjustments related to changes in Accounts Receivable from Card
Issuers and Accounts Payable to Clients mentioned in the section
“Adjusted Net Cash Provided by / (Used in) Operating Activities”
above.
The Company generated R$79.6 million of Adjusted Free Cash Flow
in 2Q19, compared to negative Adjusted Free Cash Flow of R$12.8
million in 2Q18, as shown in the table below.
Table 7: Adjusted Free Cash Flow
Reconciliation of Adjusted Free Cash Flow
(R$mm) |
2Q19 |
2Q18 |
|
1H19 |
1H18 |
Net cash used in operating activities |
(1,883.6) |
(138.1) |
|
(2,178.5) |
(373.0) |
|
|
|
|
|
|
(-) Adjustments in operating activities: |
|
|
|
|
|
Accounts receivable from card issuers |
2,128.2 |
256.2 |
|
3,302.8 |
683.4 |
Accounts payable to clients |
228.4 |
51.4 |
|
(241.4) |
32.1 |
Interest income received, net of costs |
(313.2) |
(131.1) |
|
(547.9) |
(217.3) |
|
|
|
|
|
|
Purchases of property and equipment |
(62.4) |
(37.6) |
|
(117.0) |
(92.5) |
Purchases and development of intangible assets |
(17.7) |
(13.6) |
|
(29.7) |
(24.3) |
|
|
|
|
|
|
Adjusted free cash flow (R$mn) |
79.6 |
(12.8) |
|
188.3 |
8.4 |
The main reason for the increase in Adjusted Free Cash Flow in
2Q19 compared with 2Q18 was the improvement in our Adjusted Net
Income to R$171.9 million in 2Q19 from R$63.0 million in 2Q18, and
despite higher cash outflows from Income Tax Paid, Labor and Social
Security Liabilities and Other Accounts Receivable.
Adjusted Net Cash
Management assesses net liquidity of the Company by Adjusted Net
Cash/(Debt), a non-IFRS metric. It consists of our Cash and Cash
Equivalents, plus Short-term Investments and Accounts Receivable
from Card Issuers, reduced by Accounts Payable to Clients, Loans
and Financing and Obligations to FIDC Senior Quota Holders.
As of June 30, 2019, the Company´s Adjusted Net Cash position
was R$4,632.9 million, compared with R$4,480.0 million on December
31, 2018, an increase of R$152.9 million. This increase was related
to the R$3,071.3 million higher Adjusted Cash, partially offset by
the R$2,918.4 million higher Adjusted Debt. Higher Adjusted Cash
was mainly due to an increase of R$3,274.3 million in Accounts
Receivable from Card Issuers, and the increase in Adjusted Debt was
mainly due to higher Obligations to FIDC senior quota holders of
R$1,627.9 million, as the Company raised a new FIDC series in the
market.
Table 8: Adjusted Net Cash
Adjusted Net Cash (R$mm) |
2Q19 |
4Q18 |
Cash and cash equivalents |
160.6 |
297.9 |
Short-term investments |
2,704.8 |
2,770.6 |
Accounts receivable from card issuers |
12,518.9 |
9,244.6 |
Adjusted Cash |
15,384.4 |
12,313.1 |
|
|
|
Accounts payable to clients |
(5,796.0) |
(4,996.1) |
Loans and financing |
(1,253.0) |
(762.5) |
Obligations to FIDC senior quota holders |
(3,702.4) |
(2,074.6) |
Adjusted Debt |
(10,751.5) |
(7,833.1) |
|
|
|
Adjusted Net Cash |
4,632.9 |
4,480.0 |
Other Information
Conference Call
Stone will discuss its second quarter financial results during a
teleconference today, August 14, 2019, at 5:00 PM ET / 6:00 PM BRT.
The conference call can be accessed at +1 (412) 317 6346 or +1
(844) 204 8586 (US), or +55 (11) 3181 8565 (Brazil), or +44 (20)
3795 9972 (UK).
The call will also be broadcast simultaneously on Stone’s
Investor Relations website at https://investors.stone.co/.
Following the completion of the call, a recorded replay of the
webcast will be available on Stone’s Investor Relations website at
https://investors.stone.co/.
About Stone Co.
Stone Co. is a leading provider of financial technology
solutions that empower merchants to conduct commerce seamlessly
across multiple channels and help them grow their businesses.
Investor ContactInvestor
Relationsinvestors@stone.com.br
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are made as of the date they were first issued and were
based on current expectations, estimates, forecasts and projections
as well as the beliefs and assumptions of management. These
statements identify prospective information and may include words
such as “believe,” “may,” “will,” “aim,” “estimate,” “continue,”
“anticipate,” “intend,” “expect,” “forecast,” “plan,” “predict,”
“project,” “potential,” “aspiration,” “objectives,” “should,”
“purpose,” “belief,” and similar, or variations of, or the negative
of such words and expressions, although not all forward-looking
statements contain these identifying words.
Forward-looking statements are subject to a number of risks and
uncertainties, many of which involve factors or circum- stances
that are beyond Stone’s control.
Stone’s actual results could differ materially
from those stated or implied in forward-looking statements due to a
number of factors, including but not limited to: more intense
competition than expected, lower addition of new clients,
regulatory measures, more investments in our business than
expected, and our inability to execute successfully upon our
strategic initiatives, among other factors.
About Non-IFRS Financial Measures
To supplement the financial measures presented in this press
release and related conference call, presentation, or webcast in
accordance with IFRS, Stone also presents the following non-IFRS
measures of financial performance: Adjusted Net Income, Adjusted
Net Cash Provided by / (Used in) Operating Activities, Adjusted
Free Cash Flow and Adjusted Net Cash / (Debt).
A “non-IFRS financial measure” refers to a numerical measure of
Stone’s historical or future financial performance or financial
position that either excludes or includes amounts that are not
normally excluded or included in the most directly comparable
measure calculated and presented in accordance with IFRS in Stone’s
financial statements. Stone provides certain non-IFRS measures as
additional information relating to its operating results as a
complement to results provided in accordance with IFRS. The
non-IFRS financial information presented herein should be
considered in conjunction with, and not as a substitute for or
superior to, the financial information presented in accordance with
IFRS. There are significant limitations associated with the use of
non-IFRS financial measures. Further, these measures may differ
from the non-IFRS information, even where similarly titled, used by
other companies and therefore should not be used to compare Stone’s
performance to that of other companies.
Stone has presented Adjusted Net Income to eliminate the effect
of items from Net Income that it does not consider indicative of
its core operating performance within the period presented. Stone
defines Adjusted Net Income as Net Income (Loss) for the Period,
adjusted for (1) non-cash expenses related to the grant of
share-based compensation and the fair value (mark-to-market)
adjustment for share-based compensation classified as a liability,
(2) amortization of intangibles related to acquisitions, (3)
one-time impairment charges, (4) one-off gains and (5) tax expense
relating to the foregoing adjustments
Stone has presented Adjusted Free Cash Flow metric, which has
limitations as it omits certain components of the overall Cash Flow
Statement and does not represent the residual cash flow available
for discretionary expenditures. For example, this metric does not
incorporate the portion of payments representing principal
reductions of debt or cash payments for business acquisitions.
Therefore, the Company believes it is important to view Free Cash
Flows measures only as a complement to our entire consolidated
Statements of Cash Flows.
Stone has presented Adjusted Net Cash / (Debt) metric in order
to adjust its Net Cash / (Debt) by the balances of Accounts
Receivable from Card Issuers and Accounts Payable to Clients, since
these lines vary according to the Company’s funding source together
with the lines of (i) Cash and Cash Equivalents, (ii) Short-term
Investments, and (iii) Debt balances, due to the nature of Stone’s
business and prepayment operation.
Table 9: Unaudited Consolidated Statement of Profit or
Loss
Statement of Profit or Loss (R$mm) |
2Q19 |
2Q18 |
|
1H19 |
1H18 |
Net revenue from transaction activities and other services |
177.3 |
113.9 |
|
346.0 |
204.1 |
Net revenue from subscription services and equipment rental |
74.6 |
46.5 |
|
145.8 |
85.0 |
Financial income |
297.2 |
183.5 |
|
548.6 |
333.1 |
Other financial income |
37.1 |
3.8 |
|
81.5 |
13.6 |
Total revenue and
income |
586.2 |
347.7 |
|
1,122.0 |
635.7 |
Cost of services |
(100.8) |
(70.2) |
|
(186.2) |
(141.1) |
Administrative expenses |
(77.4) |
(58.4) |
|
(142.1) |
(117.4) |
Selling expenses |
(87.3) |
(43.7) |
|
(150.0) |
(81.4) |
Financial expenses, net |
(78.8) |
(74.0) |
|
(145.4) |
(142.6) |
Other operating income (expense), net |
(32.3) |
(15.7) |
|
(43.8) |
(20.8) |
(Loss) income from investment in associates |
(0.5) |
(0.3) |
|
(0.5) |
(0.4) |
Profit before income
taxes |
209.1 |
85.3 |
|
454.0 |
132.1 |
Income tax and social contribution |
(37.3) |
(22.3) |
|
(105.1) |
(44.4) |
Net income for the period |
171.9 |
63.0 |
|
348.9 |
87.7 |
Table 10: Unaudited Consolidated Balance Sheet
Statement
Balance Sheet (R$mm) |
30-Jun-19 |
31-Dec-18 |
Assets |
|
|
Current assets |
15,576.5 |
12,437.8 |
Cash and cash equivalents |
160.6 |
297.9 |
Short-term investments |
2,704.8 |
2,770.6 |
Accounts receivable from card issuers |
12,518.9 |
9,244.6 |
Trade accounts receivable |
52.8 |
44.6 |
Recoverable taxes |
90.8 |
56.9 |
Prepaid expenses |
22.6 |
15.1 |
Derivative financial instruments |
9.1 |
1.2 |
Other accounts receivable |
16.8 |
6.9 |
|
|
|
Non-current assets |
999.3 |
855.4 |
Receivables from related parties |
7.9 |
8.1 |
Deferred income tax assets |
262.0 |
262.7 |
Other accounts receivable |
11.0 |
8.5 |
Prepaid expenses |
0.0 |
0.0 |
Investment in associate |
19.2 |
2.2 |
Property and equipment |
375.8 |
266.3 |
Intangible assets |
323.4 |
307.7 |
|
|
|
Total Assets |
16,575.7 |
13,293.2 |
|
|
|
Liabilities and equity |
|
|
Current liabilities |
8,206.1 |
6,054.8 |
Accounts payable to clients |
5,796.0 |
4,996.1 |
Trade accounts payable |
95.6 |
117.8 |
Loans and financing |
984.3 |
761.1 |
Obligations to FIDC senior quota holders |
1,139.8 |
16.6 |
Labor and social security liabilities |
105.1 |
96.7 |
Taxes payable |
60.8 |
51.6 |
Derivative financial instruments |
0.8 |
0.6 |
Other accounts payable |
23.5 |
14.2 |
|
|
|
Non-current liabilities |
2,936.2 |
2,145.5 |
Loans and financing |
268.7 |
1.4 |
Obligations to FIDC senior quota holders |
2,562.6 |
2,057.9 |
Deferred income tax liabilities |
97.1 |
80.2 |
Provision for contingencies |
3.0 |
1.2 |
Other accounts payable |
4.7 |
4.7 |
|
|
|
Total liabilities |
11,142.3 |
8,200.2 |
|
|
|
Equity attributable to owners of the parent |
5,434.0 |
5,093.3 |
Issued capital |
0.1 |
0.1 |
Capital reserve |
5,368.9 |
5,351.9 |
Other comprehensive income |
(81.8) |
(56.3) |
Retained earnings |
146.8 |
(202.3) |
|
|
|
Non-controlling interests |
(0.5) |
(0.3) |
|
|
|
Total equity |
5,433.5 |
5,093.0 |
|
|
|
Total liabilities and equity |
16,575.7 |
13,293.2 |
Table 11: Unaudited Consolidated Statement of Cash
Flows
Cash Flow (R$mm) |
|
2Q19 |
2Q18 |
|
1H19 |
1H18 |
Net income for the year |
|
171.9 |
63.0 |
|
348.9 |
87.7 |
|
|
|
|
|
|
|
Adjustments on Net Income: |
|
|
|
|
|
|
Depreciation and amortization |
|
34.1 |
22.7 |
|
63.8 |
40.0 |
Deferred income tax expenses |
|
35.7 |
(0.8) |
|
30.4 |
(5.1) |
Loss on investment in associates |
|
0.5 |
0.3 |
|
0.5 |
0.4 |
Other financial costs and foreign exchange, net |
|
28.9 |
35.1 |
|
27.3 |
72.0 |
Provision of contingencies |
|
0.9 |
0.2 |
|
1.7 |
0.3 |
Share based payment expense |
|
8.9 |
0.0 |
|
17.0 |
0.0 |
Allowance for doubtful accounts |
|
15.7 |
3.2 |
|
20.2 |
9.0 |
Loss on disposal of property, equipment and intangible assets |
|
1.5 |
9.5 |
|
2.9 |
18.8 |
Onerous contract |
|
0.0 |
0.0 |
|
0.0 |
(0.4) |
Fair value adjustment to derivatives |
|
(15.2) |
0.0 |
|
(7.6) |
0.0 |
|
|
|
|
|
|
|
Working capital adjustments: |
|
|
|
|
|
|
Accounts receivable from card issuers |
|
(2,128.2) |
(256.2) |
|
(3,302.8) |
(683.4) |
Receivables from related parties |
|
1.0 |
10.4 |
|
3.0 |
(1.0) |
Recoverable taxes |
|
(56.9) |
(53.9) |
|
(59.4) |
(59.1) |
Prepaid expenses |
|
6.0 |
(1.4) |
|
(7.6) |
(5.9) |
Other accounts receivable |
|
(33.3) |
(9.2) |
|
(40.1) |
(23.1) |
Accounts payable to clients |
|
(228.4) |
(51.4) |
|
241.4 |
(32.1) |
Taxes payable |
|
76.1 |
43.8 |
|
127.7 |
51.2 |
Labor and social security liabilities |
|
(12.6) |
10.3 |
|
8.3 |
27.3 |
Accounts payable to related parties |
|
0.0 |
(4.0) |
|
0.0 |
0.0 |
Provision for contingencies |
|
0.1 |
(0.0) |
|
0.1 |
(0.0) |
Other liabilities |
|
3.9 |
(2.6) |
|
(22.6) |
6.5 |
Interest paid |
|
(66.1) |
(75.5) |
|
(86.6) |
(75.6) |
Interest income received, net of costs |
|
313.2 |
131.1 |
|
547.9 |
217.3 |
Income tax paid |
|
(41.4) |
(12.8) |
|
(92.9) |
(17.8) |
Net cash used in operating activity |
|
(1,883.6) |
(138.1) |
|
(2,178.5) |
(373.0) |
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
Purchases of property and equipment |
|
(62.4) |
(37.6) |
|
(117.0) |
(92.5) |
Purchases and development of intangible assets |
|
(17.7) |
(13.6) |
|
(29.7) |
(24.3) |
Proceeds from (acquisition of) short term investments, net |
|
(18.8) |
6.7 |
|
138.4 |
(7.4) |
Proceeds from the disposal of non-current assets |
|
0.6 |
(2.1) |
|
0.9 |
1.1 |
Acquisition of interest in associates |
|
(6.5) |
(0.4) |
|
(7.0) |
(0.4) |
Net cash used in investing activities |
|
(104.7) |
(46.9) |
|
(14.4) |
(123.4) |
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
Proceeds from borrowings |
|
450.0 |
0.0 |
|
450.0 |
0.0 |
Payment of borrowings |
|
(1.2) |
0.7 |
|
(1.4) |
(0.5) |
Proceeds from FIDC senior quota holders |
|
1,620.0 |
0.0 |
|
1,620.0 |
0.0 |
Payment of finance leases |
|
(5.4) |
(1.6) |
|
(11.4) |
(5.3) |
Capital increase |
|
0.0 |
0.0 |
|
0.0 |
3.2 |
Acquisition of non-controlling interests |
|
(0.2) |
5.8 |
|
(0.5) |
0.0 |
Net cash provided by (used in) financing
activities |
|
2,063.2 |
4.9 |
|
2,056.8 |
(2.6) |
|
|
|
|
|
|
|
Effect of foreign exchange on cash and cash equivalents |
|
(1.2) |
(2.2) |
|
(1.2) |
(0.1) |
Change in cash and cash equivalents |
|
73.7 |
(182.3) |
|
(137.3) |
(499.1) |
Cash and cash equivalents at beginning of period |
|
87.0 |
325.2 |
|
297.9 |
642.0 |
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
160.6 |
142.9 |
|
160.6 |
142.9 |
A PDF accompanying this announcement is available
at http://ml.globenewswire.com/Resource/Download/4f168679-0621-40dc-9ced-cb601179523e
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