PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
São Paulo, S.P., 05429-900
Federative Republic of Brazil
annual reports under cover Form 20-F or Form 40-F.
Form 20-F ___X___ Form 40-F ______
in paper as permitted by Regulation S-T Rule 101(b)(1)__.
in paper as permitted by Regulation S-T Rule 101(b)(7)__.
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.
Yes ______ No ___X___
registrant in connection with Rule 12g3-2(b):
CIA. DE SANEAMENTO BÁSICO DO ESTADO DE SÃO PAULO - SABESP
Rui de Britto Álvares Affonso
Chief Financial Officer and Investor Relations Officer
Mario Azevedo de Arruda Sampaio
Head of Capital Markets and Investor Relations
SABESP announces 1Q07 results São Paulo, May 15, 2007 - Companhia de Saneamento Básico do Estado de São Paulo – SABESP (Bovespa: SBSP3; NYSE: SBS), one of the largest water and sewage service providers in the world based on the number of customers, announces today its results for the first quarter 2007 (1Q07). The Company’s operating and financial information, except when indicated otherwise, is presented in Brazilian Reais, in accordance with the Brazilian Corporate Law (BR GAAP). All comparisons in this release, unless otherwise stated, refer to the same period of 2006.
|
SBSP3: R$ 300.00/ thousand shares |
1. Net revenue grows 8.9% and EBITDA grows 3.7%
| R$ million | ||||||||
| 1Q06 | 1Q07 | Chg. | % | |||||
| (+)Gross operating revenue | 1,456.7 | 1,583.2 | 126.5 | 8.7 | ||||
| (-) COFINS and PASEP tax | 112.2 | 118.6 | 6.4 | 5.7 | ||||
| (+)Net operating revenue | 1,344.5 | 1,464.6 | 120.1 | 8.9 | ||||
| (-) Costs and expenses | 795.8 | 897.3 | 101.5 | 12.8 | ||||
| (=)Earnings before financial expenses (EBIT*) | 548.7 | 567.3 | 18.6 | 3.4 | ||||
| (+)Depreciation and amortization | 146.7 | 154.1 | 7.4 | 5.0 | ||||
| (=)EBITDA** | 695.4 | 721.4 | 26.0 | 3.7 | ||||
| Net income | 327.9 | 292.9 | (35.0) | (10.7) | ||||
| (%) EBITDA margin | 51.7 | 49.3 | ||||||
| Earnings per thousand shares (R$) | 11.51 | 10.28 | ||||||
(*) Earnings before interest and taxes
(**) Earnings before interest, taxes, depreciation and amortization
In 1Q07, net operating revenue totaled R$ 1,464.6 million, an 8.9% increase in comparison to 1Q06. Costs and expenses, in the amount of R$ 897.3 million were 12.8% higher than in 1Q06. EBITDA grew from R$ 695.4 million in 1Q06 to R$ 721.4 million in 1Q07, corresponding to a 3.7% growth.
EBIT recorded a 3.4% growth, from R$ 548.7 million in 1Q06 to R$ 567.3 million in 1Q07. Net income reached R$ 292.9 million, down by 10.7% when compared to the R$ 327.9 million recorded in 1Q06.
2. Gross operating revenue growth
In 1Q07, gross operating revenue increased by R$ 126.5 million, or 8.7%, from R$ 1,456.7 million in 1Q06 to R$ 1,583.2 million in 1Q07. The main reasons for this increase were:
-
The 3.2% increase in billed water and sewage volume, of which 0.8% refers to sewage treatment in the municipalities of Mogi das Cruzes, Santo André, São Caetano and Mauá, where the Company sells water to the wholesale category;
and
- The 6.71% tariff readjustment as of August 2006.
3. Billed volume
The following tables show billed water and sewage volume per customer category and region in 1Q06 and 1Q07.
BILLED WATER AND SEWAGE VOLUME(1) PER CUSTOMER CATEGORY - million m3
| Water | Sewage | Water + Sewage | ||||||||||||||||
| 1Q06 | 1Q07 | % | 1Q06 | 1Q07 | % | 1Q06 | 1Q07 | % | ||||||||||
| Residential | 333.0 | 339.3 | 1.9 | 259.6 | 267.9 | 3.2 | 592.6 | 607.2 | 2.5 | |||||||||
| Commercial | 37.0 | 37.7 | 1.9 | 33.5 | 34.2 | 2.1 | 70.5 | 71.9 | 2.0 | |||||||||
| Industrial | 8.7 | 8.7 | - | 8.0 | 8.3 | 3.8 | 16.7 | 17.0 | 1.8 | |||||||||
| Public | 10.9 | 11.0 | 0.9 | 8.7 | 8.8 | 1.2 | 19.6 | 19.8 | 1.0 | |||||||||
| Total retail | 389.6 | 396.7 | 1.8 | 309.8 | 319.2 | 3.0 | 699.4 | 715.9 | 2.4 | |||||||||
| Wholesale | 65.1 | 66.7 | 2.5 | - | 6.4 | - | 65.1 | 73.1 | 12.3 | |||||||||
| Total | 454.7 | 463.4 | 1.9 | 309.8 | 325.6 | 5.1 | 764.5 | 789.0 | 3.2 | |||||||||
Page 2 of 10
BILLED WATER AND SEWAGE VOLUME(1) PER REGION - million m3
| Water | Sewage | Water + Sewage | ||||||||||||||||
| 1Q06 | 1Q07 | % | 1Q06 | 1Q07 | % | 1Q06 | 1Q07 | % | ||||||||||
| Metropolitan | 256.9 | 262.2 | 2.1 | 208.4 | 215.9 | 3.6 | 465.3 | 478.1 | 2.8 | |||||||||
| Regional (2) | 132.7 | 134.5 | 1.4 | 101.4 | 103.3 | 1.9 | 234.1 | 237.8 | 1.6 | |||||||||
| Total retail | 389.6 | 396.7 | 1.8 | 309.8 | 319.2 | 3.0 | 699.4 | 715.9 | 2.4 | |||||||||
| Wholesale | 65.1 | 66.7 | 2.5 | - | 6.4 | - | 65.1 | 73.1 | 12.3 | |||||||||
| Total | 454.7 | 463.4 | 1.9 | 309.8 | 325.6 | 5.1 | 764.5 | 789.0 | 3.2 | |||||||||
(1) Not-audited
(2) Non-metropolitan and costal regions
4. Costs, administrative and selling expenses
In 1Q07, the costs of products and services rendered and administrative and selling expenses moved up by R$ 101.5 million or 12.8% .
| R$ million | ||||||||
| 1Q06 | 1Q07 | Chg. | % | |||||
| Payroll and benefits | 277.1 | 300.9 | 23.8 | 8.6 | ||||
| Supplies | 28.2 | 32.1 | 3.9 | 13.8 | ||||
| Treatment supplies | 32.6 | 35.5 | 2.9 | 8.9 | ||||
| Third-party services | 107.3 | 126.7 | 19.4 | 18.1 | ||||
| Electric power | 105.3 | 118.2 | 12.9 | 12.3 | ||||
| General expenses | 22.6 | 44.8 | 22.2 | 98.2 | ||||
| Depreciation and amortization | 146.7 | 154.1 | 7.4 | 5.0 | ||||
| Credit write-offs | 68.2 | 76.3 | 8.1 | 11.9 | ||||
| Tax expenses | 7.8 | 8.7 | 0.9 | 11.5 | ||||
| Costs, administrative and selling | ||||||||
| expenses | 795.8 | 897.3 | 101.5 | 12.8 | ||||
| % over net revenue | 59.2 | 61.3 | ||||||
4.1. Payroll and benefits
In 1Q07 payroll and benefits grew by R$ 23.8 million or 8.6%, moving up from R$ 277.1 million to R$ 300.9 million, due to the following:
-
A 4.63% (IPCA – IBGE) wage adjustment as of May 2006; and
- The provision for pension plan obligations, as determined by CVM Resolution 371, with a R$ 12.8 million increase due to the following recurrent factors: adoption of a new mortality rate table and lower average term for retirement.
4.2. Supplies
In 1Q07, this figure increased by R$ 3.9 million or 13.8%, from R$ 28.2 million to R$ 32.1 million, mostly due to:
-
Residential connection and water and sewage network maintenance in the amount of R$ 2.4 million; and
- Supplies used for the maintenance of Sewage Treatment Stations, in the amount of R$ 1.5 million.
4.3. Treatment supplies
The R$ 2.9 million or 8.9% increase, from R$ 32.6 million to R$ 35.5 million in 1Q07, is a result of a higher volume of treated water and sewage, and a 6.0% average price readjustment.
Page 3 of 10
4.4. Third-party services
In 1Q07, third-party services grew by R$ 19.4 million or 18.1%, from R$ 107.3 million to R$ 126.7 million. The main reasons for this performance were:
-
Residential connection and water and sewage network maintenance in the amount of R$ 5.9 million;
-
Maintenance, license use, and hiring an IT environment to enable and ensure the Company’s operations in contingency situations, in the amount of R$ 4.8 million;
-
“Projeto Verão 2007” (2007 Summer Project) advertising and disclosure campaign in the amount of R$ 1.1 million; and
- Expenses related to the water Loss Control and Fraud Combat programs, in the amount of R$ 2.0 million.
4.5. Electric power
Increased by R$ 12.9 million or 12.3%, from R$ 105.3 million to R$ 118.2 million, mainly due to:
-
Growth in water (1.9%) and sewage treatment (3.7%) volumes; and
- An average electric power tariff increase of 10.4%, primarily due to the 8.5% increase in the captive market price, which represents 82.9% of electric power expenses.
4.6. General expenses
In 1Q07, general expenses moved up by R$ 22.2 million or 98.2%, from R$ 22.6 million to R$ 44.8 million, chiefly due to the:
-
Provision for contingencies mostly related to labor matters, in the amount of R$ 12.8 million; and
- Reversion of provisions for losses in the amount of R$ 9.4 million in March 2006, non-recurring in 2007.
4.7. Depreciation and amortization
Depreciation and amortization grew by R$ 7.4 million or 5.0%, from R$ 146.7 million to R$ 154.1 million, due to the transfer of works in place to permanent operating in 1Q07.
4.8. Credit write-offs
Recorded an R$ 8.1 million or 11.9% increase over 1Q06 due to the:
-
9% tariff increase; and
- Higher provisioning volume for amounts above R$ 30 thousand, generating a 2.6% variation in customers classified as Rol Comum (customer category that are charged by bill).
5. Financial expenses and revenues
In 1Q07 financial expenses dropped by R$ 21.6 million, or 13.0%, as follows:
Page 4 of 10
| R$ million | ||||||||
| 1Q06 | 1Q07 | Chg. | % | |||||
| Financial expenses | ||||||||
| Interest and charges on domestic loans and financing | 138.4 | 118.2 | (20.2) | (14.6) | ||||
| Interest and charges on international loans and financing | 22.0 | 18.2 | (3.8) | (17.3) | ||||
| Other financial expenses | 9.2 | 6.6 | (2.6) | (28.3) | ||||
| Provision | 19.6 | 25.5 | 5.9 | 30.1 | ||||
| Total financial expenses | 189.2 | 168.5 | (20.7) | (10.9) | ||||
| Financial revenues | 22.5 | 23.4 | 0.9 | 4.0 | ||||
| Financial expenses net of revenues | 166.7 | 145.1 | (21.6) | (13.0) | ||||
The highlights regarding domestic financing are:
- The R$ 20.2 million drop in the provision for interest over domestic financing, mainly due to the:
| a | prepayment of the 1st series of the 5th debenture issuance in April 2006; | |
| a | amortization of the 4th debenture issuance carried out in 2006 and settled in December 2006; | |
| a | payment of the principal amount of the agreement with Banco do Brasil which impacted the interest calculation; and | |
| a | decrease in the CDI that contributed to the decrease in the interest calculation over the 6th , 7th and 8th debenture issuance. | |
| The settlement of the 1st series of the 5th debenture issuance with proceeds from the FIDC in March 2006 pushed the interest rate down from 1.1% p.a. to 0.70% p.a. |
The highlight regarding international financing is the R$ 3.3 million drop due to the prepayment of part of the 2008 Eurobonds in November 2006. The new funding – 2016 Eurobonds – reduced interest rate from 12% p.a. to 7.5% p.a..
Regarding other financial expenses, we highlight the R$ 3.0 million drop, resulting mostly from the decrease in the Long-Term Interest Rate (TJLP) on interest applied on the PAES (tax special installment program).
In 1Q07, there was a R$ 5.9 million increase regarding the provision for monetary restatement of new lawsuits
6. Passive and active monetary variation
The R$ 41.4 million net effect of monetary variation was due to:
6.1. Passive monetary variation
-
The increase in the IGPM Index in 1Q07 (from 0.7% in 1Q06 to 1.11% in 1Q07), generating a R$ 3.5 million monetary variation over the debentures;
-
Lower monetary variation of financing resulting from the amortization carried out over the year on the Banco do Brasil financing in the amount of R$ 1.8 million; and
- Lower appreciation of the Brazilian Real in 1Q07 (3.9%) and of the currency basket, in comparison to the appreciation of the Brazilian Real in 1Q06 (7.2%), as well as the lower US dollar exposure, generating a R$ 42.4 million variation.
Page 5 of 10
| R$ million | ||||||||
| 1Q06 | 1Q07 | Chg. | % | |||||
| Monetary variation over loans and financing | 20.1 | 21.8 | 1.7 | 8.5 | ||||
| Currency exchange variation over loans and financing | (89.3) | (46.9) | 42.4 | (47.5) | ||||
| Other monetary variation | 0.6 | 0.8 | 0.2 | 33.3 | ||||
| Passive monetary variation | (68.6) | (24.3) | 44.3 | (64.6) | ||||
6.2. Active monetary variation
The R$ 2.9 million, or 39.2%, increase, from R$ 7.4 million to R$ 10.3 million, was mainly due to the higher number of replanished agreements for customers classified as Rol Comum.
7. Operating indicators
| Operating indicators* | Mar/06 | Mar/07 | % | |||
| Water connections (1) | 6,527 | 6,650 | 1.9 | |||
| Sewage connections (1) | 4,918 | 5,036 | 2.4 | |||
| Population directly served - water (2) | 22.6 | 22.8 | 0.9 | |||
| Population directly served - sewage (2) | 18.3 | 18.6 | 1.6 | |||
| Number of employees | 17,364 | 16,966 | (2.3) | |||
| Operational productivity (3) | 659 | 689 | 4.6 | |||
(1) In thousand units at the end of the period
(2) In million inhabitants at the end of the period, not including wholesale
(3) Number of water and sewage connections per employee
* Not-audited
8. Loans and financing
| R$ million | ||||||||||||||||
| INSTITUTION | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 em diante |
Total | ||||||||
| Domestic | ||||||||||||||||
| Banco do Brasil | 164.3 | 235.9 | 256.8 | 279.5 | 304.2 | 331.1 | 455.4 | 2,027.2 | ||||||||
| Caixa Econômica Federal | 38.4 | 54.6 | 58.0 | 62.3 | 67.5 | 73.0 | 168.0 | 521.8 | ||||||||
| Debentures | 231.8 | - | 755.3 | 301.8 | 363.8 | - | - | 1,652.7 | ||||||||
| FIDC - SABESP I | 41.6 | 55.6 | 55.6 | 55.5 | 13.9 | - | - | 222.2 | ||||||||
| BNDES | 23.7 | 31.6 | 31.6 | 31.6 | 31.6 | 25.7 | 2.2 | 178.0 | ||||||||
| Others | 2.2 | 5.8 | 6.2 | 5.7 | 5.2 | - | - | 25.1 | ||||||||
| Interest and charges | 103.9 | 9.4 | 8.4 | 8.4 | 2.1 | - | - | 132.2 | ||||||||
| Domestic total | 605.9 | 392.9 | 1,171.9 | 744.8 | 788.3 | 429.8 | 625.6 | 4,759.2 | ||||||||
| International | ||||||||||||||||
| World Bank | 4.6 | - | - | - | - | - | - | 4.6 | ||||||||
| IDB | 84.2 | 70.7 | 70.7 | 70.7 | 70.7 | 70.7 | 462.4 | 900.1 | ||||||||
| Eurobonds | - | 201.0 | - | - | - | - | 287.1 | 488.1 | ||||||||
| JBIC | - | - | - | - | 0.3 | 0.8 | 12.9 | 14.0 | ||||||||
| Interest and charges | 28.5 | - | - | - | - | - | - | 28.5 | ||||||||
| International total | 117.3 | 271.7 | 70.7 | 70.7 | 71.0 | 71.5 | 762.4 | 1,435.3 | ||||||||
| Total | 723.2 | 664.6 | 1,242.6 | 815.5 | 859.3 | 501.3 | 1,388.0 | 6,194.5 | ||||||||
Page 6 of 10
9. Conference calls
| In Portuguese May 17, 2007 9:00 AM (EST) / 10:00 AM (Brasília time) Dial in: 55 11 4688-6301 Conference ID: Sabesp Replay – available between 05/17 and 05/25 Dial in: 55 11 4688-6225 Replay ID: 121 |
In English May 17, 2007 12:00 NOON (EST) / 1:00 PM (Brasília time) Dial in: +1 973 935-8893 Conference ID: 8789301 Replay – available between 05/17 and 05/24 Dial in: +1 973 341-3080 Replay ID: 8789301 |
Live Internet broadcast at www.sabesp.com.br
For more information, please contact our Investor Relations Department:
Mario Sampaio
Phone.(5511) 3388-8664
E-mail: maasampaio@sabesp.com.br
Angela Beatriz Airoldi
Phone.(5511) 3388-8793
E-mail: abairoldi@sabesp.com.br
Statements contained in this press release may contain information that is forward-looking and reflects management's current view and estimates of future economic circumstances, industry conditions, SABESP performance, and financial results. Any statements, expectations, capabilities, plans and assumptions contained in this press release that do not describe historical facts, such as statements regarding the declaration or payment of dividends, the direction of future operations, the implementation of principal operating and financing strategies and capital expenditure plans, the factors or trends affecting financial condition, liquidity or results of operations, are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. There is no guarantee that these results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.
Page 7 of 10
Income Statement
| Corporate Law Method (Law No. 6,404/76) | R$ thousand | |||||
| 1Q07 | 1Q06 | % | ||||
| Gross Revenue from Sales and Services | 1,583,224 | 1,456,757 | 8.7 | |||
| Water Supply - Retail | 821,077 | 760,485 | 8.0 | |||
| Water Supply - Wholesale | 69,674 | 64,135 | 8.6 | |||
| Sewage Collection and Treatment | 665,405 | 609,116 | 9.2 | |||
| Sewage Collection and Treatment - Wholesale | 1,260 | - | - | |||
| Other Services | 25,808 | 23,021 | 12.1 | |||
| Taxes on Sales and Services - COFINS and PASEP | (118,617) | (112,163) | 5.8 | |||
| Net Revenue from Sales and Services | 1,464,607 | 1,344,594 | 8.9 | |||
| Costs of Sales and Services | (653,801) | (594,256) | 10.0 | |||
| Gross Profit | 810,806 | 750,338 | 8.1 | |||
| Selling Expenses | (150,468) | (137,923) | 9.1 | |||
| Administrative Expenses | (93,095) | (63,757) | 46.0 | |||
| Operating Income before Financial Expenses and | 567,243 | 548,658 | 3.4 | |||
| Foreing Exchange gain (loss), net | ||||||
| Financial Income and Expenses, net | (157,143) | (180,015) | (12.7) | |||
| Foreing Exchange gain (loss), net | 46,698 | 89,271 | (47.7) | |||
| Operating Income | 456,798 | 457,914 | (0.2) | |||
| Non-Operating Expenses (Income) | ||||||
| Non-Operating Income | 1,331 | 2,929 | (54.6) | |||
| Non-Operating Expense | (2,343) | (2,326) | 0.7 | |||
| Income (loss) before Taxes on Income | 455,786 | 458,517 | (0.6) | |||
| Income and Social Contribution Taxes | ||||||
| Current Income Tax/Social Contribution | (181,077) | (116,324) | 55.7 | |||
| Deferred Income Tax/Social Contribution | 18,171 | (5,497) | (430.6) | |||
| Income (loss) before Extraordinary Item | 292,880 | 336,696 | (13.0) | |||
| Extraordinary item, net of income taxes and social contribution | - | (8,780) | - | |||
| Net Income (loss) | 292,880 | 327,916 | (10.7) | |||
| Registered common shares (thousand of shares) | 28,479,577 | 28,479,577 | - | |||
| Earnings (loss) per thousand shares in R$ | 10.28 | 11.51 | (10.7) | |||
| Depreciation and Amortization | (154,109) | (146,714) | 5.0 | |||
| EBITDA | 721,352 | 695,372 | 3.7 | |||
% over net revenue |
49.3% | 51.7% | ||||
Page 8 of 10
Balance Sheet
| Brazilian Corporate Law | R$ thousand | |||
| ASSETS | 03/31/2007 | 12/31/2006 | ||
| Cash and Cash Equivalents | 453,731 | 328,206 | ||
| Accounts Receivable, net | 1,231,301 | 1,205,047 | ||
| Accounts Receivable from Shareholders | 355,762 | 367,864 | ||
| Inventory | 41,917 | 48,889 | ||
| Taxes and contributions | 33,772 | 31,582 | ||
| Other Receivables | 34,079 | 24,124 | ||
| Deferred income tax and social contribution | 16,147 | 7,078 | ||
| Total Current Assets | 2,166,709 | 2,012,790 | ||
| Accounts Receivable, net | 299,898 | 296,562 | ||
| Accounts Receivable from Shareholders | 864,031 | 863,467 | ||
| Indemnities Receivable | 148,794 | 148,794 | ||
| Judicial Deposits | 35,352 | 33,835 | ||
| Taxes and contributions | 350,281 | 342,654 | ||
| Other Receivables | 53,811 | 52,238 | ||
| Investments | 720 | 720 | ||
| Permanent Assets | 13,844,404 | 13,837,498 | ||
| Intangible Assets | 491,821 | 495,118 | ||
| Deferred Assets | 7,703 | 10,035 | ||
| Total Permanent Assets | 16,096,815 | 16,080,921 | ||
| Total Assets | 18,263,524 | 18,093,711 | ||
| LIABILITIES | 03/31/2007 | 12/31/2006 | ||
| Suppliers and Constructors | 89,844 | 144,167 | ||
| Loans and Financing | 817,414 | 852,475 | ||
| Salaries and Payroll Charges | 148,108 | 177,705 | ||
| Taxes and contributions payable | 198,464 | 105,552 | ||
| Taxes and contributions | 73,670 | 76,359 | ||
| Interest on Own Capital Payable | 511,517 | 511,519 | ||
| Provivion for Judicial Pendencies | 28,966 | 2,294 | ||
| Services Payable | 115,837 | 152,953 | ||
| Other Payables | 69,051 | 78,912 | ||
| Total Current Liabilities | 2,052,871 | 2,101,936 | ||
| Loans and Financing | 5,377,108 | 5,474,254 | ||
| Taxes and contributions payable | 222,670 | 230,440 | ||
| Deferred Taxes and Contributions | 148,284 | 146,901 | ||
| Provision for Contingencies | 666,593 | 655,258 | ||
| Pension Fund Obligations | 331,975 | 321,212 | ||
| Other Payables | 52,185 | 51,470 | ||
| Long Term Liabilities | 6,798,815 | 6,879,535 | ||
| Capital Stock | 3,403,688 | 3,403,688 | ||
| Capital Reserves | 113,408 | 106,690 | ||
| Revaluation Reserves | 2,405,656 | 2,427,499 | ||
| Profit Reserves | 3,174,363 | 3,174,363 | ||
| Accrued income | 314,723 | - | ||
| Shareholder's Equity | 9,411,838 | 9,112,240 | ||
| Total Liabilities and Shareholder's Equity | 18,263,524 | 18,093,711 | ||
Page 9 of 10
Cash Flow
| Brazilian Corporate Law | R$ thousand | |||
| Description | Jan-Mar/07 | Jan-Mar/06 | ||
| Cash flow from operating activities | ||||
| Net income for the period | 292,880 | 327,916 | ||
| Adjustments for reconciliation of net income | ||||
| Deferred income tax and social contribution | (18,002) | 3,227 | ||
| Provisions for contingencies | 47,299 | 15,437 | ||
| Liabilities related to pension plans | 14,595 | 14,991 | ||
| Loss in the wirte-off of property, plant and equipment | 1,960 | 1,365 | ||
| Deferred asset write-offs | 801 | - | ||
| Gain with the sale of property | - | (1,007) | ||
| Depreciation and Amortization | 154,109 | 146,714 | ||
| Interest calculated on loans and financing payable | 138,038 | 162,529 | ||
| Foreign exchange loss on loans and financing | (25,022) | (69,279) | ||
| Passive monetary exchange variation and interest | 3,305 | 5,289 | ||
| Active monetary exchange variation and interest | (4,416) | (4,879) | ||
| Provisions for bad debt | 76,303 | 68,222 | ||
| Adjusted Net Income | 681,850 | 670,525 | ||
| (Increase) decrease in assets | ||||
| Clients | (76,001) | (200,304) | ||
| Accounts receivable from shareholders | 38,884 | 122,181 | ||
| Inventories | 6,972 | 5,337 | ||
| Recoverable Taxes | (2,190) | (2,894) | ||
| Other accounts receivable | (9,955) | (10,285) | ||
| Change in long term assets | ||||
| Clients | (29,716) | (33,907) | ||
| Accounts receivable from shareholders | (23,543) | (22,917) | ||
| Judicial deposits | (1,973) | (9,698) | ||
| Other accounts receivable | (1,136) | (14,314) | ||
| (98,658) | (166,801) | |||
| Increase (decrease) in liabilities | ||||
| Accounts payable to suppliers and contractors | (102,502) | (55,043) | ||
| Salaries and payroll charges | (29,597) | 24,816 | ||
| Taxes and contributions | 81,837 | (634) | ||
| Services payable | (37,116) | (26,524) | ||
| Other accounts payable | (9,861) | (72,457) | ||
| Pension plan | (3,832) | (3,724) | ||
| Provision for contingencies | (8,836) | (2,707) | ||
| Other accounts payable - long term | 715 | 74,975 | ||
| (109,192) | (61,298) | |||
| Net cash from operating activities | 474,000 | 442,426 | ||
| Cash flow from investing activities | ||||
| Acquisition of property, plant and equipment | (104,135) | (106,268) | ||
| Increase in intangible assets | (1,786) | (4,748) | ||
| Sale of property, plant and equipment | - | 2,188 | ||
| Increase in Deferred Assets | - | (27) | ||
| Net cash used in investing activities | (105,921) | (108,855) | ||
| Cash flow from financing activities | ||||
| Loans and Financing - long term | ||||
| Funding | 32,812 | 291,263 | ||
| Payments | (275,364) | (251,481) | ||
| Interest on own capital payment | (2) | (9,386) | ||
| Net cash used in financing activities | (242,554) | 30,396 | ||
| Net increase (decrease) in cash equivalents | 125,525 | 363,967 | ||
| Cash and cash equivalents at the beginning of the period | 328,206 | 280,173 | ||
| Cash and cash equivalents at the end of the period | 453,731 | 644,140 | ||
| Change in Cash | 125,525 | 363,967 | ||
| Additional information on cash flow: | ||||
| Interest and taxes over loans and financing | 120,089 | 140,160 | ||
| Capitalization of interest and financial charges | (2,671) | (13,113) | ||
| Payable income tax and social contribution | 87,744 | 120,641 | ||
| Property, plant and equip. received as donations and/or paid in stocks | 6,718 | 13,922 | ||
| COFINS and PASEP taxes payable | 114,461 | 75,221 | ||
Page 10 of 10
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Companhia de Saneamento Básico do Estado de São Paulo - SABESP |
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By: |
/S/ Rui de Britto Álvares Affonso
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Name: Rui de Britto Álvares Affonso
Title: Chief Financial Officer and Investor Relations Officer |
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This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.