2. The second quarter was one of the most challenging quarters of Providencia’s history;
During the quarter, our operational performance was significantly impacted by the partial
shutdown of some production lines at the São José dos Pinhais facility that started on April 1st
,
2014, until the Company reached full compliance with NR 12 (Regulatory Standard – Machinery
and Equipment) by the Ministry of Labor. The lines were gradually restarted until July 4, 2014;
Sales Volume amounted to 22.6 thousand tons, a reduction of 25.9% compared with the
same period in 2013. The shutdown is estimated to have impacted the quarter by over 6,000
tons; results are expected be normalized for the second half of 2014;
As a result of the lines shutdown the Company reported net revenues of R$ 163.8 million,
15.2% less than 2Q13;
Additionally, Polymer Group Inc. (PGI) concluded the acquisition of Companhia
Providência control on June 11th
, 2014 which shall contribute to the continuity of
our success in the market.
HIGHLIGHTS 2T14HIGHLIGHTS 2T14
3. SALES VOLUMESALES VOLUME ((in millions of tonsin millions of tons))
During the quarter, the Company posted a year-on-year reduction in total sales volume of
25.9%.
Sales of nonwovens alone posted a reduction of 23.9% compared with 2Q13.
Accumulated nonwovens sales volume increased 20.0% from the first half
2012 to the same period in 2013. However, there has been a 6.3%
reduction from 1H13 to 1H14.
20.0% (6.3%)
4. NET REVENUENET REVENUE ((in millions of Reaisin millions of Reais))
The Company reported net revenue of R$ 163.8 million in 2Q14, a decrease of 15.2% when
compared to 2Q13 and again, largely a reflection of lower sales volume in the period.
When compared, net revenues for the first half of 2012, 2013 and 2014
were significantly increased.
5. COGS - COST OF GOODS SOLDCOGS - COST OF GOODS SOLD (in millions of Reais)(in millions of Reais)
Cost of goods sold (COGS) totaled R$ 135.8 million in 2Q14, 4.4% down when compared with
R$ 142.0 million reported in 2Q13 and 15.4% less in relation to the R$ 160.6 million in 1Q14.
This decline is principally due to lower sales volume.
6. EBITDAEBITDA ((in millions of Reaisin millions of Reais) and) and EBITDA MARGINEBITDA MARGIN (%)(%)
Adjusted EBITDA in 2Q14 totaled R$ 7.2 million, a reduction of 77.5% if compared with the R$ 32.1
million registered in 2Q13. Quarter-on-quarter, the reduction was 74.9%.
The reduction is also a reflect of lower sales volume, due to the shutdown of
some production lines during the 2Q14.
7. NET RESULTNET RESULT ((in millions of Reaisin millions of Reais)) andand NET MARGINNET MARGIN (%)(%)
The Company posted a loss of R$ 45.4 million in the quarter, mainly due to lower sales volume and
nonrecurring expenses involving consultancy fees – R$ 19.7 million - related to the sale of the
Company's control, according to the Material Fact published on June 11, 2014.
8. DEBTDEBT (in millions of Reais)(in millions of Reais)
Total debt decreased 5.0% compared with 2Q13, while USD devaluated 0.6% on the same period.
Comparing 2Q14 x 1Q14, total debt had a 1.0% reduction, and USD devaluated 2.7%.;
Net debt increased 5.6% when compared with 2Q13 mainly due to the decrease of cash and
derivative financial instruments in the quarter. Net Debt increased by 3.0% in relation to 1Q14.
9. STATUS – SALE OF THE COMPANY`S CONTROL TO PGISTATUS – SALE OF THE COMPANY`S CONTROL TO PGI
On June 11, 2014, the closing of the transaction of the controlling stock took place, according to the
Material Fact filed on the same date.
On July 14, 2014 there was an Extraordinary General Meeting where the following resolutions were
taken:
The exit of the Company from Novo Mercado of BM&FBOVESPA was approved by majority of
the present shareholders;
Also approved by majority of the present shareholders representing the outstanding shares,
with the absence of the controlling shareholder present, the selection of BANCO J. SAFRA S.A.,
as the financial institution responsible for the drafting of the appraisal report on the economic
valuation of the Company’s stock, for the purposes of the Delisting Tender Offer and the
Tender Offer for the Exit of the Company from Novo Mercado.
10. CEO/CFO: Hermínio Vicente Smania de Freitas
IR : Gabriela Las Casas
Danielle Cabrini
Tel: +55 (41) 3381-8673
Fax: +55 (41) 3381-7656
São José dos Pinhais – PR
www.providencia.com.br/ri
www.twitter.com/providencia_ri
CONTACTSCONTACTS
The words “believe”, “anticipate”, “expect”, “estimate”, “will”, “plan”, “may”, “intend”, “foresee”, “project” and other similar
expressions indicate forward-looking statements. These forward-looking statements involve uncertainties, risks and assumptions, since
they include information related to our potential or assumed future operating results, business strategy, financing plans, competitive
position in the market, industry environment, potential growth opportunities and the effects of future regulations and competition. In
addition, forward-looking statements refer only to the date on which they were made and should not be taken as a guarantee of future
performance. Providência is under no obligation to update this presentation with new information and/or future events .
