sbspr2q12_6k.htm - Generated by SEC Publisher for SEC Filing
 
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
 
FORM 6-K
 
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For August 13, 2012
(Commission File No. 1-31317)
 
 
Companhia de Saneamento Básico do Estado de São Paulo - SABESP
(Exact name of registrant as specified in its charter)
 
Basic Sanitation Company of the State of Sao Paulo - SABESP
(Translation of Registrant's name into English)
 

Rua Costa Carvalho, 300
São Paulo, S.P., 05429-900
Federative Republic of Brazil
(Address of Registrant's principal executive offices)


Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.

Form 20-F ___X___ Form 40-F ______
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1)__.
Indicate by check mark if the registrant is submitting the Form 6-K
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___

If "Yes" is marked, indicated below the file number assigned to the
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 2Q12 results

São Paulo, August 10, 2012 - Companhia de Saneamento Básico do Estado de São Paulo - SABESP (BM&FBovespa: SBSP3; NYSE: SBS), one of the largest water and sewage services providers in the world based on the number of costumers, announces today its results for the second quarter 2012 (2Q12). The Company’s operating and financial information, except when indicated otherwise is presented in Brazilian Reais, in accordance with the Brazilian Corporate Law. All comparisons in this release, unless otherwise stated, refer to the same period of 2011.

 

SBSP3: R$ 89.78 / share
SBS: US$ 88.98 (ADR=2 shares)
Total shares: 227.836.623
Market Value: R$ 20 billion
Closing Price: 08/10/2012

 

 


1. Financial highlights

 

               

R$ million

 

2Q11

2Q12

Var. (R$)

%

1H11

1H12

Var. (R$)

%

(+) Gross operating revenue

1,985.4

2,048.6

63.2

3.2

3,975.2

4,237.9

262.7

6.6

(+) Construction revenue

498.5

577.8

79.3

15.9

948.7

1,128.7

180.0

19.0

(-) COFINS and PASEP taxes

144.1

151.4

7.3

5.1

289.5

313.9

24.4

8.4

(=) Net operating revenue

2,339.8

2,475.0

135.2

5.8

4,634.4

5,052.7

418.3

9.0

(-) Costs and expenses

1,253.0

1,286.8

33.8

2.7

2,681.0

2,621.6

(59.4)

(2.2)

(-) Construction costs

486.3

565.5

79.2

16.3

925.7

1,104.9

179.2

19.4

(+) Equity Results

(1.2)

(1.3)

(0.1)

-

(2.3)

(3.0)

(0.7)

-

(=) Earnings before financial expenses (EBIT*)

599.3  

621.4

22.1

3.7

1,025.4

1,323.2

297.8

29.0

(+) Depreciation and amortization

176.2

177.0

0.8

0.5

404.3

363.5

(40.8)

(10.1)

(=) EBITDA**

775.5

798.4

22.9

3.0

1,429.7

1,686.7

257.0

18.0

(%) EBITDA margin

33.1

32.3

 

 

30.8

33.4

 

 

Net income

479.6

292.8

(186.8)

(38.9)

662.4

784.7

122.3

18.5

Earnings per share (R$)

2.11

1.29

 

 

2.91

3.44

 

 

(*) Earnings before interest and taxes

(**) Earnings before interest, taxes, depreciation and amortization

In 2Q12, net operating revenue reached R$ 2.5 billion, a 5.8% growth compared to 2Q11. Costs and expenses, including construction costs, in the amount of R$ 1.9 billion grew 6.5% over 2Q11. EBIT grew 3.7%, from R$ 599.3 million in 2Q11 to R$ 621.4 million in 2Q12. EBITDA increased 3.0%, from R$ 775.5 million in 2Q11 to R$ 798.4 million in 2Q12. The EBITDA margin was 32.3% in 2Q12 in comparison to 33.1% in the same period of the previous year. Excluding construction revenues and construction costs, the EBITDA margin was 41.4% in 2Q12 (41.5% in 2Q11).

Comparing 2Q12 to 2Q11, the main variation was at the “Exchange rate variation on loans and financing”. This non cash effect was due to the depreciation of the Real versus US Dollar and Japanese Yen of 10.9% and 14.6%, respectively.

Excluding the effect from the exchange rate variation and its taxes, net income in 1H12 would have reached R$ 865.6 million (R$ 567.8 million in 1H11). 2Q12 net income would have reached R$ 478.7 million (R$ 430.6 million in 2Q11), corresponding to an 11.2% increase.

The EBITDA margin in 1H12 was 33.4% (30.8% in 2011). Excluding construction revenues and construction costs, the EBITDA margin was 42.4% (38.2% in 2011).

2. Gross operating revenue

Gross operating revenue from water supply and sewage collection grew from R$ 1,985.4 million in 2Q11 to R$ 2,048.6 million in 2Q12, an increase of R$ 63.2 million or 3.2%. The main factors for this result were: the increase of 1.4% in total billed volume, and the tariff adjustment of 6.83% as of September 2011. 

The less-than-expected growth was due to: the conclusion of the implementation of TACE(1) services in municipalities in the interior region, which led to greater billing speed and reduced water bill reception times. There was also a decline in the number of days whose unbilled supply is estimated (revenue estimate). As a result, billing reflected the sales upturn and the tariff increase, but unbilled revenue estimates, which also comprise operating revenue, were lower than the estimates for previous periods.

 

Excluding this non-recurring event, operating revenue would have grown by 7.8%.


(1) TACE (External Commercial Service Technician) – allows the metering and issuing of water and sewage bills immediately at the client’s door. Consumers can ask questions more conveniently. The technician can also issue a copy of the bill, request repairs, provide water saving tips and make changes to the clients’ registration.

Page 2 of 11

 


 

3. Construction revenue


In 2Q12, construction revenue grew from R$ 498.5 million to R$ 577.8 million, an increase of R$ 79.3 million or 15.9%, comparing to 2Q11. This variation was mainly due to higher investments in the period.


4. Billed volume

The following tables show the billed water and sewage volume per customer category and region in 2Q11, 2Q12, 1H11 and 1H12.

 

BILLED WATER AND SEWAGE VOLUME (1) PER CUSTOMER CATEGORY - million m3

 

 

Water

 

 

Sewage

 

Water + Sewage

Category

2Q11

2Q12

%

2Q11

2Q12

%

2Q11

2Q12

%

Residential

366.7

371.5

1.3

301.2

307.0

1.9

667.9

678.5

1.6

Commercial

41.8

42.6

1.9

39.2

39.7

1.3

81.0

82.3

1.6

Industrial

9.8

9.3

(5.1)

10.1

10.6

5.0

19.9

19.9

-

Public

13.8

14.1

2.2

10.9

10.9

-

24.7

25.0

1.2

Total retail

432.1

437.5

1.2

361.4

368.2

1.9

793.5

805.7

1.5

Wholesale

74.2

73.8

(0.5)

6.7

7.2

7.5

80.9

81.0

0.1

Reused water

0.1

0.1

-

-

-

-

0.1

0.1

-

Total

506.4

511.4

1.0

368.1

375.4

2.0

874.5

886.8

1.4

 

1H11

1H12

%

1H11

1H12

%

1H11

1H12

%

Residential

740.1

756.1

2.2

604.8

622.3

2.9

1,344.9

1,378.4

2.5

Commercial

83.1

85.6

3.0

77.5

79.4

2.5

160.6

165.0

2.7

Industrial

19.2

18.9

(1.6)

20.0

20.9

4.5

39.2

39.8

1.5

Public

26.0

27.2

4.6

20.4

21.0

2.9

46.4

48.2

3.9

Total retail

868.4

887.8

2.2

722.7

743.6

2.9

1,591.1

1,631.4

2.5

Wholesale

148.3

147.1

(0.8)

14.2

13.5

(4.9)

162.5

160.6

(1.2)

Reused water

0.2

0.2

-

-

-

-

0.2

0.2

-

Total

1,016.9

1,035.1

1.8

736.9

757.1

2.7

1,753.8

1,792.2

2.2

                   

BILLED WATER AND SEWAGE VOLUME (1) PER REGION - million m3

 

Water

Sewage

Water + Sewage

Region

2Q11

2Q12

%

2Q11

2Q12

%

2Q11

2Q12

%

Metropolitan

285.0

290.2

1.8

242.4

247.6

2.1

527.4

537.8

2.0

Regional (2)

147.1

147.3

0.1

119.0

120.6

1.3

266.1

267.9

0.7

Total retail

432.1

437.5

1.2

361.4

368.2

1.9

793.5

805.7

1.5

Wholesale

74.2

73.8

(0.5)

6.7

7.2

7.5

80.9

81.0

0.1

Reused water

0.1

0.1

-

-

-

-

0.1

0.1

-

Total

506.4

511.4

1.0

368.1

375.4

2.0

874.5

886.8

1.4

 

1H11

1H12

%

1H11

1H12

%

1H11

1H12

%

Metropolitan

570.3

583.4

2.3

483.7

495.9

2.5

1,054.0

1,079.3

2.4

Regional (2)

298.1

304.4

2.1

239.0

247.7

3.6

537.1

552.1

2.8

Total retail

868.4

887.8

2.2

722.7

743.6

2.9

1,591.1

1,631.4

2.5

Wholesale

148.3

147.1

(0.8)

14.2

13.5

(4.9)

162.5

160.6

(1.2)

Reused water

0.2

0.2

-

-

-

-

0.2

0.2

-

Total

1,016.9

1,035.1

1.8

736.9

757.1

2.7

1,753.8

1,792.2

2.2

   (1) Unaudited

   (2) Including coastal and countryside

Page 3 of 11

 

5. Costs, administrative, selling and construction expenses

In 2Q12, costs of products and services, administrative, selling and construction expenses grew 6.5% (R$ 113.0 million). As a percentage of net revenue, cost and expenses moved from 74.3% in 2Q11 to 74.8% in 2Q12.

 

               

R$ million

 

2Q11

2Q12

Chg. (R$)

%

1H11

1H12

Chg. (R$)

%

Payroll and benefits

412.1

443.6

31.5

7.6

968.6

849.9

(118.7)

(12.3)

Supplies

34.6

43.2

8.6

24.9

71.7

83.7

12.0

16.7

Treatment supplies

36.0

51.4

15.4

42.8

81.6

96.0

14.4

17.6

Services

232.6

252.6

20.0

8.6

464.1

517.5

53.4

11.5

Electric power

151.3

147.6

(3.7)

(2.4)

292.6

298.0

5.4

1.8

General expenses

157.0

123.7

(33.3)

(21.2)

284.4

291.5

7.1

2.5

Tax expenses

10.2

11.1

0.9

8.8

37.6

46.1

8.5

22.6

Sub-total

1,033.8

1,073.2

39.4

3.8

2,200.6

2,182.7

(17.9)

(0.8)

Depreciation and amortization

176.2

177.0

0.8

0.5

404.3

363.5

(40.8)

(10.1)

Credit write-offs

43.0

36.6

(6.4)

(14.9)

76.1

75.4

(0.7)

(0.9)

Sub-total

219.2

213.6

(5.6)

(2.6)

480.4

438.9

(41.5)

(8.6)

Construction costs

486.3

565.5

79.2

16.3

925.7

1,104.9

179.2

19.4

Costs, administrative, selling and construction expenses

1,739.3  

1,852.3

113.0

6.5

3,606.7

3,726.5

119.8

3.3

% over net revenue

74.3

74.8

 

 

77.8

73.8

 

 

 

5.1. Payroll and benefits

 

In 2Q12 payroll and benefits grew R$ 31.5 million or 7.6%, from R$ 412.1 million to R$ 443.6 million, due to the following:

 

·         8% increase in wages since May 2011 and of 6.17% since May 2012, with an impact of approximately R$ 21.0 million; and

·         Increase of R$ 11.4 million referring to actuarial liability of the G0 Plan.

 

5.2. Supplies

In 2Q12, expenses with supplies increased by R$ 8.6 million or 24.9%, when compared to the same period of the previous year, from R$ 34.6 million to R$ 43.2 million, mostly due to: (i) reincorporation to the stockroom of surplus material used in the maintenance of water and sewage connections and networks totaling R$ 3.6 million in 2Q11; and (ii) water and sewage systems preventive and correction maintenance, in the amount of R$ 2.2 million. Excluding the reincorporation to the stockroom of surplus material the variation would drop from 24.9% to 13.1%.

 

5.3. Treatment supplies

Treatment supplies expenses in 2Q12 were R$ 15.4 million or 42.8% higher than in 2Q11, from R$ 36.0 million to R$ 51.4 million. The main factors for this variation were:

 

·         Increase of R$ 7.4 million, due to the higher consumption of activated carbon, due to the reservoir  and climate conditions, as well as by the proliferation of algae in dams that serve the Guarapiranga and Cantareira production systems;

·         Increase of R$ 3.3 million, due to the greater consumption of lime for the treatment of sludge and a price increase of approximately 23.8%;

·         Increase of R$ 2.9 million from the greater consumption of hydrogen peroxide at the sewage pumping stations of the Baixada Santista Region due to the proliferation of algae, startup of the Guarujá sewage pumping station and a price increase of approximately 12.0%; and

·         Increase of R$ 1.6 million due to the higher consumption of iron chloride, which replaces iron sulfate, due to the weather conditions.


 

Page 4 of 11

 

5.4. Services

In 2Q12 this item increased R$ 20.0 million or 8.6%, from R$ 232.6 million to R$ 252.6 million. The main factors were:

·         Increase of R$ 11.9 million related to joint social and environmental initiatives established in the agreement entered into with the municipal government of São Paulo;

·         Increase of R$ 6.4 million related to the fleet renewal program, though leasing; 

·         Public and Private Partnership Agreement of the Alto Tietê Production System, with an increase of R$ 5.7 million due to the start-up in September 2011, increasing the water production capacity from 10m3/s to 15m3/s; and

·         Paving services and replacement of sidewalks in the amount of R$ 5.0 million, due to the intensification of the actions against water losses.

The increases mentioned above were offset by a R$ 4.2 million decrease resulting from a lower achievement at the implementation of the Corporate Program for Water Loss Reduction (PURA) in municipal schools.


5.5. Electric power

In 2Q12, this item decreased R$ 3.7 million, or 2.4%, from R$ 151.3 million to R$ 147.6 million, due to a 15% discount granted, since September 2011, at the Use of Distribution System Tariff (TUSD), in the operation directly related to sanitation.

 

5.6. General expenses

In 2Q12 general expenses decreased R$ 33.3 million or 21.2%, from R$ 157.0 million to R$ 123.7 million, due to:

·         Decrease in provision for legal contingencies, amounting to R$ 50.2 million;

·         Increase of R$ 5.8 million in the provision for payment of the municipal fund pursuant to the Service Agreement with the Municipal Government of São Paulo; and

·         Increase of R$ 2.1 million, due to the beginning of billing for the use of water from the Baixada Santista water basin in February 2012.


5.7. Credit write-offs


In 2Q12 credit write-offs decreased R$ 6.4 million or 14.9%, from R$ 43.0 million to R$ 36.6 million, mainly due to lower provisions of debits related to public entities.

 

6. Other operating revenues and expenses


Other operating revenues (net of expenses) decreased R$ 29.8 million, from R$ 46.9 million to R$ 17.1 million in 2Q12, due to the recognition of the funds received from the agreement of Alienation of Exclusivity Rights for deposits of Sabesp’s employees' payments from March 2007 and June 2011 with Nossa Caixa and Banco do Brasil, in the amount of R$ 36.3 million.

Page 5 of 11

 

 

7. Financial revenues and expenses

       

R$ million

 

2Q11

2Q12

Var.

%

Financial expenses

 

 

 

 

Interest and charges on domestic loans and financing

75.8

70.0

(5.8)

(7.7)

Interest and charges on international loans and financing

17.9

25.7

7.8

43.6

Interest rate over lawsuit

17.9

5.1

(12.8)

(71.5)

Other financial expenses

13.9

9.0

(4.9)

(35.3)

Total financial expenses

125.5

109.8

(15.7)

(12.5)

Financial revenues

99.3

61.6

(37.7)

(38.0)

Financial expenses net of revenues

26.2

48.2

22.0

84.0

 

7.1. Financial expenses

 

In 2Q12 financial expenses dropped R$ 15.7 million, or 12.5%. The main factors that influenced this result were:

 

·         Lower interest related to lawsuits against suppliers, in the amount of R$ 12.8 million;

·         Decrease in interest by R$ 5.8 million on domestic loans and financing, mainly due to the amortization of the 8th and 9th debenture in June and October 2011, respectively; and

·         Increase of R$ 7.8 million in interest from international loans and financing, due to the exchange rate variation.  

 

7.2. Financial revenues

 

Financial revenues decreased by R$ 37.7 million, due to the gradual reduction of the market interest rates obtained in financial investments and higher cash position.

 

8. Monetary variation on assets and liabilities

 

       

R$ million

 

2Q11

2Q12

Var.

%

Monetary variation on loans and financing

15.1

8.9

(6.2)

(41.1)

Currency exchange variation on loans and financing

(74.3)

281.7

356.0

(479.1)

Other monetary/exchange rate variations

7.7

2.1

(5.6)

(72.7)

Variation on Liabilities

(51.5)

292.7

344.2

(668.3)

Variation on assets

20.3

9.5

(10.8)

(53.2)

Net Variation

(71.8)

283.2

355.0

(494.4)


8.1. Monetary variation on liabilities

 

The effect on the monetary variation on liabilities in 2Q12 was R$ 344.2 million higher than in 2Q11, specially the exchange rate variation on international loans and financing, in the amount of R$ 356.0 million, due to the 10.9% appreciation of the US Dollar and of 14.6% appreciation of the yen in 2Q12 versus a 4.2% depreciation of the US Dollar and 1.12% depreciation of the yen in 2Q11.

 

Monetary variation on domestic loans and financing decreased by R$ 6.2 million, mainly due to the R$ 3.1 million decrease from the amortizations of the 8th and 9th debenture issues in June and October 2011 and the R$ 3.1 million decrease due to the lower variation of the TR interest rate in 2Q12 of 0.07%, compared with 0.31% in 2Q11.

Page 6 of 11

 

 

8.2. Monetary variation on assets

 

Monetary variation on assets dropped R$ 10.8 million, due to:

 

·         Monetary restatement of judicial deposits in the amount of R$ 4.8 million in 2Q11; and

·         R$ 7.6 million received in 2Q11 from the Sale of Exclusivity Rights for deposits of Sabesp’s employees' payments, which did not recur in 2Q12.


9. Operating indicators

The level of the water loss ratio is stable at 26%.  With the beginning of the hiring financed by JICA, scheduled for mid-2013, a more substantial decline in this indicator is expected.

Operating indicators*

2Q11

2Q12

%

Water connections (1)

7,386

7,576

2.6

Sewage connections (1)

5,814

6,017

3.5

Population directly served - water (2)

23.8

24.1

1.3

Population directly served - sewage (2)

20.2

20.7

2.5

Number of employees

15,397

14,496

(5.9)

Water volume produced (3)

1,500

1,531

2.1

Water losses (%)

26.0%

25.9%

(0.4)

(1) In thousand units 
(2) In million inhabitants. Not including wholesale
(3) In millions of cubic meters.
* Unaudited

 

10. Loans and financing

In July, the Company contracted 22 credit operations with Caixa Econômica Federal (CEF), totaling R$ 160 million, which will be allocated to water supply and sewage works and services in municipalities with a population of less than 50,000. The funds came from the FGTS – Sanitation for All Program and were obtained through a selection process by the Ministry of Cities. The financial charges are: interest rate of 6.00% p.a., risk rate of 0.30% p.a., and management fee of 1.40% p.a., TR – Reference Rate index. The grace period is up to 4 years and the amortization period is 20 years.

 

               

R$ million

INSTITUTION

2012

2013

2014

2015

2016

2017

2018 and onwards

Total

Local market

              

 

Banco do Brasil

178.5

380.5

100.3

-

-

-

-

659.3

Caixa Econômica Federal

57.4

114.5

75.9

54.0

53.3

55.7

608.5

1,019.3

Debentures

-

471.5

270.1

360.4

94.8

96.8

491.1

1,784.7

Debentures BNDES

2.0

36.2

56.2

71.4

71.4

71.4

261.7

570.3

Debentures FI FGTS

-

-

22.7

45.5

45.5

45.5

340.5

499.7

BNDES

38.3

46.6

43.5

43.5

43.5

43.5

215.7

474.6

Others

0.7

0.7

0.4

0.6

0.6

0.7

104.2

107.9

Interest and charges

68.3

13.2

-

-

-

-

-

81.5

Local market total

345.2

1,063.2

569.1

575.4

309.1

313.6

2,021.7

5,197.3

International market

              

 

BID

38.6

77.1

77.1

77.1

77.1

82.0

352.0

781.0

BIRD

-

-

-

-

-

-

26.9

26.9

Eurobonds

-

-

-

-

282.5

-

699.9

982.4

JICA

27.7

55.4

55.4

55.4

55.5

55.8

668.9

974.1

BID 1983AB

-

48.4

48.5

48.4

48.4

48.4

163.9

406.0

Interest and charges

18.8

-

-

-

-

-

-

18.8

International market total

85.1

180.9

181.0

180.9

463.5

186.2

1,911.6

3,189.2

Total

430.3

1,244.1

750.1

756.3

772.6

499.8

3,933.3

8,386.5

 

Page 7 of 11

 

 

11. Events

 

Conference Call in Portuguese

August 14, 2012

10:00 am (US EST) / 11:00 am (Brasilia)

Dial in access: 55 (11) 3127-4971

Conference ID: Sabesp

 

Replay available until 08/20/2012

Dial in access: 55 (11) 3127-4999

Replay ID: 52440858

 

Conference Call in English

August 14, 2012

1:00 pm (US EST) / 2:00 pm (Brasilia)

Dial in access: 1 (412) 317-6776

Conference ID: Sabesp

 

Replay available until 08/24/2012

Dial in access: 1(412) 317-0088

Replay ID: 10016614

 

Click here for live webcast and Access through the Internet at: www.sabesp.com.br

 

 

 

 

 

 

 

For more information, please contact:

 

Mario Arruda Sampaio

Phone.(55 11) 3388-8664

E-mail: maasampaio@sabesp.com.br 

 

Angela Beatriz Airoldi                                                                         

Phone.(55 11) 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 8 of 11

 

Income statement

 

Corporate Law Method (Law No. 6,404/76)

        

R$ '000

 

PARENT COMPANY

 

CONSOLIDATED

 

2Q12

2Q11

 

2Q12

2Q11

Gross Revenue from Sales and Services

2,626,406

2,483,943

 

2,629,793

2,485,814

Water Supply - Retail

1,049,444

1,027,158

 

1,050,371

1,028,400

Water Supply - Wholesale

49,919

39,033

 

49,919

39,033

Sewage Collection and Treatment

901,397

872,200

 

901,397

872,698

Sewage Collection and Treatment - Wholesale

6,286

4,499

 

6,286

4,499

Construction Revenue - Water

249,752

243,189

 

250,110

243,237

Construction Revenue - Sewage

328,126

255,349

 

329,383

255,398

Other Services

41,482

42,515

 

42,327

42,549

 

 

 

 

 

 

Taxes on Sales and Services - COFINS and PASEP

(151,357)

(144,160)

 

(151,508)

(144,248)

 

 

 

 

 

 

Net Revenue from Sales and Services

2,475,049

2,339,783

 

2,478,285

2,341,566

 

 

 

 

 

 

Costs of Sales and Services

(1,567,770)

(1,437,714)

 

(1,569,866)

(1,439,146)

 

 

 

 

 

 

Gross Profit

907,279

902,069

 

908,419

902,420

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

Selling

(168,512)

(155,317)

 

(168,592)

(155,392)

Administrative

(116,040)

(146,219)

 

(118,312)

(147,561)

Other operating revenue (expenses), net 

18,397

48,199

 

18,434

48,227

 

 

 

 

 

 

Operating Income Before Shareholdings   

641,124

648,732

 

639,949

647,694

Equity Result   

(1,297)

(1,286)

 

-

-

 

 

 

 

 

 

Earnings Before Financial Results, net

639,827

647,446

 

639,949

647,694

Financial, net

(49,890)

(18,660)

 

(50,558)

(18,775)

Exchange gain (loss), net

(281,485)

64,211

 

(281,497)

64,213

 

 

 

 

 

 

Earnings before Income Tax and Social Contribution

308,452

692,997

 

307,894

693,132

 

 

 

 

 

 

Income Tax and Social Contribution

 

 

 

 

 

 

 

 

 

 

 

Current 

24,541

(197,704)

 

23,539

(197,832)

Deferred

(40,181)

(15,646)

 

(38,621)

(15,653)

 

 

 

 

 

 

Net Income (loss) for the period

292,812

479,647

 

292,812

479,647

 

 

 

 

 

 

Registered common shares ('000)

227,836

227,836

 

227,836

227,836

Earnings per shares - R$ (per share)

1.29

2.11

 

1.29

2.11

 

 

 

 

 

 

Depreciation and Amortization

(177,015)

(176,228)

 

(177,013)

(176,239)

EBITDA

798,445

775,475

 

798,528

775,706

% over net revenue

32.3%

33.1%

 

32.2%

33.1%

 

Page 9 of 11

 

Balance sheet

Brazilian Corporate Law

            

R$ '000

 

PARENT COMPANY

 

CONSOLIDATED

ASSETS

06/30/2012

 

12/31/2011

 

06/30/2012

 

12/31/2011

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

  

 

Cash and Cash Equivalents

1,743,447

 

2,142,079

 

1,752,485

 

2,149,989

Accounts Receivable from Clients

931,472

 

1,072,015

 

932,329

 

1,072,659

Related Party Balance

174,101

 

185,333

 

174,101

 

185,333

Inventory

33,368

 

44,576

 

33,409

 

44,611

Restricted cash

90,847

 

99,729

 

90,847

 

99,729

Recoverable Taxes

86,047

 

117,893

 

86,355

 

118,116

Other Receivables

88,095

 

43,069

 

76,232

 

55,396

Total Current Assets

3,147,377

 

3,704,694

 

3,145,758

 

3,725,833

 

            

 

Non-Current

            

 

Long Term Assets:

            

 

Accounts Receivable from Clients

315,623

 

333,713

 

315,623

 

333,713

Related Party Balance

154,345

 

170,288

 

154,345

 

170,288

Indemnities Receivable

60,295

 

60,295

 

60,295

 

60,295

Judicial Deposits

50,016

 

54,178

 

50,016

 

54,178

Deferred income tax and social contribution

138,465

 

177,926

 

142,162

 

179,463

National Water Agencie - ANA

104,779

 

100,551

 

104,779

 

100,551

Other Receivables

36,879

 

35,034

 

38,787

 

39,933

 

860,402

 

931,985

 

866,007

 

938,421

 

            

 

Investments

23,993

 

21,986

 

-

 

-

Investment properties

54,046

 

52,585

 

54,046

 

52,585

Intangible Assets

20,865,998

 

20,125,721

 

20,885,415

 

20,141,677

Permanent Assets

198,005

 

181,585

 

393,709

 

356,468

 

21,142,042

 

20,381,877

 

21,333,170

 

20,550,730

Total Non-Current Assets

22,002,444

 

21,313,862

 

22,199,177

 

21,489,151

 

 

  

 

      

 

Total Assets

25,149,821

 

25,018,556

 

25,344,935

 

25,214,984

 

            

 

LIABILITIES AND SHAREHOLDERS' EQUITY

06/30/2012

 

12/31/2011

 

06/30/2012

 

12/31/2011

 

 

 

Current

            

 

Contractors and Suppliers

193,370

 

244,658

 

195,275

 

255,557

Current portion of

            

 

long term loans

1,323,611

 

1,629,184

 

1,325,346

 

1,630,010

Salaries and Payroll Charges

282,617

 

243,502

 

283,272

 

243,876

Other taxes and contributions payable

121,129

 

180,794

 

121,248

 

181,122

Interest on Own Capital Payable

142

 

247,486

 

142

 

247,486

Provisions

691,117

 

764,070

 

691,117

 

764,070

Services payable

375,497

 

383,116

 

375,497

 

383,116

Other payables

391,588

 

263,336

 

400,349

 

263,431

Total Current Liabilities

3,379,071

 

3,956,146

 

3,392,246

 

3,968,668

 

            

 

Non-Current

            

 

Loans and Financing

7,062,855

 

6,794,148

 

7,244,394

 

6,966,285

Other taxes and contributions payable

-  

  

18,363

 

-

 

18,363

Deferred Cofins/Pasep taxes

115,513

 

114,106

 

117,026

 

114,957

Provisions

726,657

 

807,759

 

726,662

 

807,759

Pension Plan Obligations

2,094,324

 

2,050,697

 

2,094,324

 

2,050,697

Other Payables

728,924

 

731,441

 

727,806

 

742,359

Total Non Current Liabilities

10,728,273

 

10,516,514

 

10,910,212

 

10,700,420

 

            

 

Shareholders' Equity

            

 

Capital Stock

6,203,688

 

6,203,688

 

6,203,688

 

6,203,688

Capital Reserves

124,255

 

124,255

 

124,255

 

124,255

Income reserve and accrued earnings

4,714,534

 

4,217,953

 

4,714,534

 

4,217,953

Total Shareholders' Equity

11,042,477

 

10,545,896

 

11,042,477

 

10,545,896

 

 

  

 

      

 

Total Liabilities and Shareholders' Equity

25,149,821

 

25,018,556

 

25,344,935

 

25,214,984

 

 

 

 

 

 

 

 

 

Page 10 of 11

 

Cash flow

Brazilian Corporate Law

      

R$ '000

Description

PARENT COMPANY

CONSOLIDATED

Jan-Jun/12

Jan-Jun/11

Jan-Jun/12

Jan-Jun/11

 

 

 

 

 

Cash flow from operating activities

 

 

 

 

Earnings before income tax and social contribution

1,063,640

1,071,724

1,061,370

1,071,822

Depreciation and Amortization

363,511

404,324

363,588

404,339

Losses from the sale of fixed and intangible assets

2,056

4,379

2,056

4,379

Provisions for bad debt

183,738

177,892

183,738

177,892

Provisions

(6)

116,014

(6)

116,014

Interest calculated over loans and financing payable

204,957

237,592

212,969

237,853

Monetary and exchange variation over loans and financing

139,890

(108,511)

139,890

(108,511)

Variation on liabilities and interest

863

1,549

863

1,556

Variation on assets and interest

(5,182)

(14,319)

(5,182)

(14,319)

Fair value margin on intangible assets from

(23,863)

(22,982)

(24,603)

(22,982)

Provision for the conduct adjustment agreement (TAC)

20,315

21,949

20,315

21,949

Equity result

3,057

2,252

-

-

São Paulo municipal goverment transfers

(2,638)

(835)

(2,638)

(835)

Provision for Sabesprev Mais

(5,147)

(5,655)

(5,147)

(5,655)

Other write-offs

3,669

4,630

3,669

4,630

Pension plan obligations

48,649

215,639

48,649

215,639

Adjusted net income (generated by operating activities)

1,997,509

2,105,642

1,999,531

2,103,771

 

 

 

 

 

Variation on Assets and Liabilities

(202,619)

(145,712)

(187,257)

(146,151)

(Increase) decrease in assets:

 

 

 

 

Accounts receivable from clients

(23,355)

(104,549)

(23,568)

(104,875)

Balances and transactions with related parties

28,946

15,996

28,946

15,996

Inventories

10,443

(755)

10,437

(767)

Recoverable Taxes

(20,715)

(56,558)

(20,942)

(56,801)

Judicial deposits

(36,306)

5,525

(36,306)

5,525

Other accounts receivable

(54,003)

2,512

(28,576)

1,671

Increase (decrease) in liabilities:

 

 

 

 

Contractors and suppliers

(71,735)

23,048

(80,729)

23,622

Payment for services

(7,619)

(16,372)

(7,619)

(16,372)

Salaries and payroll charges

18,800

5,007

19,081

5,296

Other taxes and contributions payable

(78,891)

(20,158)

(79,100)

(20,049)

Taxes on revenues

1,407

1,142

2,321

1,142

Pension plan obligations

(5,022)

(5,972)

(5,022)

(5,972)

Other accounts payable

147,351

71,616

145,735

71,627

Contingencies

(111,920)

(66,194)

(111,915)

(66,194)

 

 

 

 

 

Others

(505,560)

(642,740)

(505,998)

(642,740)

Interest paid

(320,951)

(374,631)

(321,389)

(374,631)

Income tax and contribution paid

(184,609)

(268,109)

(184,609)

(268,109)

 

 

 

 

 

Net cash generated from operating activities

1,289,330

1,317,190

1,306,276

1,314,880

 

 

 

 

 

Cash flow from investing activities:

 

 

 

 

Restricted cash

8,882

189,787

8,882

189,787

Increase in investment

(5,064)

(10,556)

-

-

Acquisition of property, plant and equipment

(9,198)

(6,065)

(30,042)

(41,156)

Acquisition of intangible assets

(858,859)

(798,483)

(861,634)

(803,850)

Income from the sale of fixed assets

-

-

-

-

Net cash used in investing activities

(864,239)

(625,317)

(882,794)

(655,219)

 

 

 

 

 

Cash flow from financing activities

 

 

 

 

Funding

888,842

1,305,953

895,711

1,340,878

Amortizations

(1,174,793)

(1,389,954)

(1,178,925)

(1,392,256)

Payment of interest on own capital

(537,772)

(422,923)

(537,772)

(422,923)

Net cash generated (invested) at financing activities

(823,723)

(506,924)

(820,986)

(474,301)

 

 

 

 

 

Increase (decrease) in cash and equivalents

(398,632)

184,949

(397,504)

185,360

Cash and cash equivalents at the beginning of the period

2,142,079

1,988,004

2,149,989

1,989,179

Cash and cash equivalents at the end of the period

1,743,447

2,172,953

1,752,485

2,174,539

Changes in Cash and Cash Equivalents

(398,632)

184,949

(397,504)

185,360

 

 

 

 

 

 

 

 

 

 

 

Page 11 of 11

 

SIGNATURE  
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the city São Paulo, Brazil.
Date: August 30, 2012
 
Companhia de Saneamento Básico do Estado de São Paulo - SABESP
By: /s/  Rui de Britto Álvares Affonso    
 
Name: Rui de Britto Álvares Affonso
Title: Chief Financial Officer and Investor Relations Officer
 

 

 
FORWARD-LOOKING STATEMENTS

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.