© 2024 Alpha Spread Limited. All Rights Reserved.
www.alphaspread.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on www.alphaspread.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. In no event shall Alpha Spread Limited be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on www.alphaspread.com, or relating to the use of, or inability to use, www.alphaspread.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance.
You don't have any saved screeners yet
Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
Good morning, ladies and gentlemen. At this time, we would like to welcome everyone to Valid's First Quarter 2018 Earnings Conference Call. Today, with us, we have Mr. Carlos Affonso d’Albuquerque, CEO; and Mrs. Rita Carvalho, Chief Financial and Investor Relations Officer. We would like to inform you that this event is being recorded. [Operator Instructions] We have a simultaneous webcast that may be accessed through Valid's IR website at www.valid.com.br/en/ir and the MZiQ platform. The slide presentation may be downloaded from this website. Please feel free to flip through the slides during the conference call. There will be a replay facility for this call on the website. Before proceeding, let me mention that forward-looking statements are made under the safe harbor of the Securities and Litigation Reform Act of 1996. Forward-looking statements are based on the beliefs and assumptions of Valid management and on information currently available to the company. They involve risks, uncertainties and assumptions because they relate to future events and, therefore, depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the value -- the future results of Valid and could cause results to differ materially from those expressed in such forward-looking statements. Now, I'll turn the conference over to Carlos Affonso d’Albuquerque, CEO for Valid. Mr. d'Albuquerque, you may begin your conference.
So thank you, and thank you all for being here once again for the conference call regarding the results of Valid. So we are very proud to present these results this quarter, mainly because it shows clearly that we are -- turned around the company as we said since the middle of last year. We did huge improves in all of the businesses that we have, mainly in the United States and [indiscernible] in Brazil. It is a result of a strong work that all of the company did during the last 2 years. And now, we are delivering these kind of results. And I would like to reinforce that it has to be seen not only the results itself, but beyond that because it shows clearly the consistency of our results, the consistency of our restructuring vis-à-vis the market that we have in front of us right now. And these results also allows us to keep moving towards the future. We are betting a lot in many opportunities that we have in front of us. Just also to mention some of them. I would say that we are pursuing the opportunities that we have in connected cars, in trucking freights, in biometrics platform and the opportunities that we have in ID in the United States. So these kind of results that we were building up, these results since we talk last year, saying to all of you that we started a huge process of pursue the efficiency. At that time, we said that we would be able to bring to the company savings around BRL 80 million over the next 24 months at that time. So now, one year later, I am here and say -- and can say that we have in our hands BRL 63 million in savings, and that we can reach the BRL 80 million in the next quarters. So all in all, as you know, we are trying to have this kind of conversation with you guys very briefly to open more time for questions. So again, thank you very much for the last year that we support ourselves, we -- [ believing on ] us and now we are ready to the growth again. Again, thank you very much. Now, Rita, please.
Thanks, Affonso. Hello, everyone. Thank you for once again joining our conference call. I have some brief comments about the first quarter results. One is related to CapEx. We've ended this quarter BRL 60 million, which is in line with our expectations. And the main investments were BRL 7.3 million in the Identification Systems area, mainly with a focus on track and trace projects. And we also spent around BRL 4 million in the implementation of the required infrastructure to the embedded SIM in China and all the certifications related to this project. And we also spent -- invested in projects related to the development of platforms and services and also the maintenance of the company's traditional business. Related to the operational cash flow generation, this quarter, we generated BRL 47 million, which is the highest cash flow generation for -- in the company observed for our first quarter. This was a result of our solid results and also the conclusion of the restructuring projects that consumed cash during last year. As I had previously mentioned in the last conference call, the operating cash flow generation has effectively returned to normal levels for our business. Regarding to the company's leverage, we ended the first quarter with a cash position of BRL 331 million, which once again contributed to the company's reduction in net debt-to-EBITDA, which reached this quarter 1.7x the accumulated EBITDA of the last 12 months. In the end of 2016, our net debt was 1.5x the EBITDA, while at the end of the 2017, it was 1.29x the EBITDA. What we are expecting for 2018 is to return the same levels that we saw in 2016. Related to the amortization of our debt, this year, we'll -- some approximately BRL 252 million in -- which is nearly BRL 136 million corresponds to our debt in reals. It's related to debentures here in Brazil, which we will work to refinance this part of the debt. And we also have $35 million which will be matured during 2018 and related to that outside of Brazil. And in this case, we will use the cash to amortize this amount. And to finish my comments, I would like to say that in April 26, during our shareholders' meeting, Annual Shareholders' Meeting, the company announced the payment of BRL 10.6 million in dividends. And this is related to the distribution of the 2017 results. And what we are expecting for 2018 is at least keep the 50% payout policy. Thank you, once again. And now, we can take your questions.
[Operator Instructions] Having no questions, I will turn the conference over to the company for final considerations.
So again, I would like to thank you all for the support and the message that we'd like to say here is that we are ready for the growth again. So again, thank you very much.
This concludes today's Valid's Earnings Conference Call. You may disconnect your lines at this time.