The document provides an earnings release and conference call agenda for a company's 3Q13 results. Key highlights included record launches of R$1.6 billion in 9M13, with 80% in an affordable housing program. Sales reached a record R$1.7 billion in 9M13, up 51% year-over-year. Inventory was reduced by 9% in 9M13, with continued focus on geographical diversification. Net income increased 17% to R$178 million in 9M13, with a net margin of 13.6%. The presentation provides additional financial details on revenues, costs, margins, and capital structure.
Rexnord Corporation (RXN) First Quarter Fiscal Year 2017 Earnings Release Rexnord
1Q results in line on operating basis Net sales decline 3%, including 2% drag from RHF product line exit –core sales(1)decline 1% S(1)f$$fff Adjusted EPS(1)of $0.35 includes $0.03 per share from timing of tax benefit Closed acquisition of Cambridge, enhancing consumer-facing end-market exposure Reduced outstanding debt by $100 million, eliminating all principal repayments before maturity WMfldddjii Water Management reflects steady nonresdemand, project timing Favorable growth outlook continues for US nonresidential construction end markets Investing in key new product introductions scheduled over coming 6-18 months Process & Motion Control core growth comparison improves Global aftermarket revenue increases as industrial distribution sell-through stabilizes Cambridge delivers solid contribution in initial quarter, integration on track Re-affirming guidance for fiscal 2017 Adjusted EPS of $1.47-1.57 End markets generally consistent with expectations –impact of weaker markets diminishing Supply chain optimization & footprint repositioning on track to deliver $30 million annual savings
4Q results Core sales growth -3% –Adjusted EPS of $0.37 fff$%f FY16 free cash flow of $171 million, or 113% of adjusted net income Significant progress in portfolio management, cost reduction, management alignment Water Management performing well in favorable market environment Core operations deliver 20.3% adjusted EBITDA margin in fiscal 2016 Solid momentum in US nonresidential construction end markets Process & Motion Control outlook positive for aerospace, food & beverage Stabilizing sell-through in industrial distribution implies improving year-over-year comparisons Cambridge acquisition builds on leadership in food & beverage, expands consumer exposure Initiating guidance range for fiscal 2017 Adjusted EPS of $1.47-1.57 gggj$ Slow-growth end-market environment continues, but industrial MRO stabilizing Supply chain optimization & footprint repositioning on track to deliver $30 million annual savings
Rexnord Corporation (RXN) First Quarter Fiscal Year 2017 Earnings Release Rexnord
1Q results in line on operating basis Net sales decline 3%, including 2% drag from RHF product line exit –core sales(1)decline 1% S(1)f$$fff Adjusted EPS(1)of $0.35 includes $0.03 per share from timing of tax benefit Closed acquisition of Cambridge, enhancing consumer-facing end-market exposure Reduced outstanding debt by $100 million, eliminating all principal repayments before maturity WMfldddjii Water Management reflects steady nonresdemand, project timing Favorable growth outlook continues for US nonresidential construction end markets Investing in key new product introductions scheduled over coming 6-18 months Process & Motion Control core growth comparison improves Global aftermarket revenue increases as industrial distribution sell-through stabilizes Cambridge delivers solid contribution in initial quarter, integration on track Re-affirming guidance for fiscal 2017 Adjusted EPS of $1.47-1.57 End markets generally consistent with expectations –impact of weaker markets diminishing Supply chain optimization & footprint repositioning on track to deliver $30 million annual savings
4Q results Core sales growth -3% –Adjusted EPS of $0.37 fff$%f FY16 free cash flow of $171 million, or 113% of adjusted net income Significant progress in portfolio management, cost reduction, management alignment Water Management performing well in favorable market environment Core operations deliver 20.3% adjusted EBITDA margin in fiscal 2016 Solid momentum in US nonresidential construction end markets Process & Motion Control outlook positive for aerospace, food & beverage Stabilizing sell-through in industrial distribution implies improving year-over-year comparisons Cambridge acquisition builds on leadership in food & beverage, expands consumer exposure Initiating guidance range for fiscal 2017 Adjusted EPS of $1.47-1.57 gggj$ Slow-growth end-market environment continues, but industrial MRO stabilizing Supply chain optimization & footprint repositioning on track to deliver $30 million annual savings
3. 3
Highlights of 3Q13 and 9M13
Cash Generation of R$ 68 million in 3Q13 and R$ 31 million in 9M13, with a growth in Net Revenues
of 22% YoY
Record Launches of R$ 1.6 billion in 9M13, 80% in the segment MCMV Level 1
Record Sales of R$ 1.7 billion in 9M13
Reduction of 9% in total inventory in 9M13, with 51% growth in sales YoY
Financing pass-through to banks reached a record R$192 million in 3Q13 and R$455 million in
9M13, an increase of 41% and 43%, respectively, if compared whit the same period of 2012
Delivery of 6,332 units in 9M13, representing PSV of R$ 726 million
ROE LTM of 18%
4. 4
Launches and Net Sales
Focus on the MCMV Level 1, representing 80% of launches in the 9M13.
Best third quarter in sales and SoS 47%.
659
479
3Q13
642
504
138
2Q13
543
403
1,715
+51%
+15%
+18%
9M13
1,311
404
9M12
1,139
140
3Q12
558
400
158
Contracted Net Sales
(PSV - R$ million)
15%
21%
15%15%
19%
47%50%
41%
55%
41%
3Q12 4Q12 3Q132Q131Q13
With MCMV Level 1 projectWithout MCMV Level 1 project
Sales by Period of Launching - 3Q13
(% PSV - Ex-MCMV Level 1)
3Q13
63%
1H13
1%
2012
20%
<2012
16%
Sales-over-supply ratio (SoS)
(% Total PSV)
33%
<2012
35%32%
9M13
2012
3Q13 9M13
+44%
1,311
9M13
+75%
+42%
1,646
400
143
335
9M12
1,157
659
497
3Q13
780
504
276
2Q13
446
403
44
3Q12
543
Launches
(PSV - R$ million)
Development
MCMV Level 1
Development
MCMV Level 1
5. 5
Inventory
8%
31%
2012
23%
2011
<2011
17%
Finished Units2013
20%
Midweast 18%
North 51%
Southeast 31%
9M13
727
603
124
2012
800
670
130
-9%
Finished Units
Under Construction
Inventory by Region
(% PSV)
Inventory by Launch Period
(% PSV)
Inventory Track Record
(R$ million)
43%
18%Midweast
North 40%
Southeast
4Q12 3Q13
Reduction of 9% in total inventory in 9M13
Geographical diversification of the inventory.
12. 12
Capital Structure
(R$ million)
22%
Debentures
CRI
7%
Working Capital
2%
FINAME and Leasing
4%
SFH
65%
Loans and Financing – 3Q13
(% of Debt)
945
4Q12
450
793
3Q13
519
913
2Q13
500
Cash
Gross Debt343
Net Debt
22% 28% 24%
Net Debt / Shareholder's
Equity
12
445 394
Capital Structure
13. 13
Disclosure
This presentation contains certain forward-looking statements concerning the business prospects,
projections of operating and financial results and growth potential of the Company, which are based on
management’s current expectations and estimates of the future performance of the Company. Although the
Company believes such forward-looking statements are based on reasonable assumptions, it can give no
assurance that its expectations will be achieved. Expectations and estimates that are based on the future
prospects of the Company are highly dependent upon market behavior, Brazil’s political and economic
situation, existing and future regulations of the industry and international markets and, therefore, are
subject to changes outside the Company’s and management’s control. The Company undertakes no
obligation to update any information contained herein or to revise any forward-looking statement as a result
of new information, future events or other information.
14. 14
Contatos
Carlos Wollenweber
CFO | IR Officer
Paulo Sousa
IR Coordinator
Luiz Felipe Almeida
IR Analyst
www.direcional.com.b/ir
ir@direcional.com.br
(55 31) 3214-6200
(55 31) 3214-6450