Embraer Earnings Results 4th Quarter and Fiscal Year 2019

PR Newswire

SÃO PAULO, March 26, 2020

SÃO PAULO, March 26, 2020 /PRNewswire/ — EMBRAER S.A. (NYSE: ERJ; B3: EMBR3) releases its Fourth Quarter and Fiscal Year 2019 Earnings Results.

HIGHLIGHTS

Embraer delivered 35 commercial jets and 46 executive jets (20 light and 26 large) in 4Q19, and in 2019 delivered 89 commercial jets and 109 executive jets (62 light and 47 large), meeting guidance for 2019;
The Company’s firm order backlog at the end of 4Q19 was US$ 16.8 billion, an increase compared to the US$ 16.2 billion reported at the end of 3Q19 and US$ 16.3 billion reported at the end of 4Q18;
Revenues in 4Q19 reached US$ 2,085.0 million and for fiscal year 2019 were US$ 5,462.6 million, in line with the Company’s stated 2019 guidance for revenues of US$ 5.3 – US$ 5.7 billion;
4Q19 Adjusted EBIT and Adjusted EBITDA were US$ 4.0 million and US$ 65.8 million, respectively, yielding Adjusted EBIT margin of 0.2% and Adjusted EBITDA margin of 3.2%;
For 2019, Adjusted EBIT and Adjusted EBITDA were US$ (5.4) million and US$ 181.9 million, respectively. Adjusted EBIT margin for the year was -0.1% and Adjusted EBITDA margin was 3.3%. Embraer’s Adjusted EBIT margin for 2019 reached the guidance level of approximately breakeven;
4Q19 Net loss attributable to Embraer shareholders and Loss per ADS were US$ (209.8) million and US$ (1.14) per share, respectively. Adjusted net loss (excluding deferred income tax and social contribution and special items) for 4Q19 was US$ (93.4) million, with Adjusted loss per ADS of US$ (0.51). Embraer’s 2019 adjusted net loss was US$ (217.5) million, and adjusted loss per ADS was US$ (1.18);
Embraer generated record free cash flow of US$ 739.4 million in 4Q19, finishing 2019 with adjusted free cash flow usage of US$ (181.8) million, within the guidance of US$ (300) million to US$ (100) million.
The Company finished 2019 with strong liquidity with a total cash position of US$ 2,779.9 million. Embraer’s 4Q19 total debt of US$ 3,392.3 million had an average maturity of almost five years, yielding a net debt position of US$ 612.4 million vs. US$ 1,347.2 million of net debt in 3Q19;
Due to the uncertainty related to the impact of the spread of the COVID-19 virus, the Company is suspending its 2020 guidance.

MAIN FINANCIAL INDICATORS

IFRS	3Q19	4Q18	4Q19	2018	2019
Revenue	1,175.6	1,697.6	2,085.0	5,071.1	5,462.6
EBIT	(20.8)	6.6	(67.6)	35.3	(77.0)
EBIT margin %	-1.8%	0.4%	-3.2%	0.7%	-1.4%
Adjusted EBIT	(20.8)	67.9	4.0	223.8	(5.4)
Adjusted EBIT margin %	-1.8%	4.0%	0.2%	4.4%	-0.1%
EBITDA	18.2	72.2	(5.8)	285.2	110.3
EBITDA margin %	1.5%	4.3%	-0.3%	5.6%	2.0%
Adjusted EBITDA	18.2	133.5	65.8	473.7	181.9
Adjusted EBITDA margin %	1.5%	7.9%	3.2%	9.3%	3.3%
Adjusted net income (Loss)	(48.4)	23.0	(93.4)	(54.2)	(217.5)
Adjusted earnings (losses) per share – ADS basic	(0.2631)	0.1253	(0.5077)	(0.2953)	(1.1822)
Net income (loss) attributable to Embraer Shareholders	(77.2)	2.6	(209.8)	(178.2)	(322.3)
Earnings (losses) per share – ADS basic (US$)	(0.4197)	0.0142	(1.1404)	(0.9710)	(1.7519)
Adjusted free cash flow	(257.4)	426.7	739.4	(127.5)	(181.8)
Net debt	(1,347.2)	(439.9)	(612.4)	(439.9)	(612.4)

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
investor.relations@embraer.com.br
ri.embraer.com.br

CONFERENCE CALL INFORMATION
Embraer will host a conference call to present its 4Q19 Results on Thursday, March 26, 2020 at 10:30 AM (SP) / 9:30 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

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