sbspr1q16_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 May 12, 2016
(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 1Q16 results   
 

São Paulo, May 12, 2016 - 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 1Q16 results. 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 2015.

 

SBSP3: R$ 27.73/share

SBS: US$ 7.84 (ADR=1 share)

Total shares: 683,509,869

Market value: R$ 18.9 billion

Closing quote: 05/12/2016

 


 


 

 

 


 

 

1.    Financial highlights

 

         

R$ million

 

 

1Q16

1Q15

Chg. (R$)

%

 

Gross operating revenue

2,570.6

2,004.5

566.1

28.2

 

Construction revenue

625.3

588.4

36.9

6.3

 

COFINS and PASEP taxes

(168.1)

(124.3)

(43.8)

35.2

(=)

Net operating revenue

3,027.8

2,468.6

559.2

22.7

 

Costs and expenses

(1,794.4)

(789.1)

(1,005.3)

127.4

 

Construction costs

(612.4)

(576.4)

(36.0)

6.2

 

Equity result

2.1

1.1

1.0

90.9

 

Other operating revenue (expenses), net

5.5

32.1

(26.6)

(82.9)

(=)

Earnings before financial result, income tax and social contribution

628.6

1,136.3

(507.7)

(44.7)

 

Financial result

340.2

(985.8)

1,326.0

(134.5)

(=)

Earnings before income tax and social contribution

968.8

150.5

818.3

543.7

 

Income tax and social contribution

(340.0)

167.7

(507.7)

(302.7)

(=)

Net income

628.8

318.2

310.6

97.6

 

Earnings per share* (R$)

0.92

0.47

 

 

 

* Total shares = 683,509,869

       

 

Adjusted EBITDA Reconciliation (Non-accounting measures)

 

         

R$ million

 

 

1Q16

1Q15

Chg. (R$)

%

 

Net income

628.8

318.2

310.6

97.6

 

Income tax and social contribution

340.0

(167.7)

507.7

(302.7)

 

Financial result

(340.2)

985.8

(1,326.0)

(134.5)

 

Other operating revenues (expenses), net

(5.5)

(32.1)

26.6

(82.9)

(=)

Adjusted EBIT*

623.1

1,104.2

(481.1)

(43.6)

 

Depreciation and amortization

284.7

253.3

31.4

12.4

(=)

Adjusted EBITDA **

907.8

1,357.5

(449.7)

(33.1)

 

(%) Adjusted EBITDA margin

30.0

55.0

 

 

(*) Adjusted EBIT is net income before: (i) other operating revenues/expenses, net; (ii) financial result; and (iii) income tax and social contribution.

(**) Adjusted EBITDA is net income before: (i) depreciation and amortization expenses; (ii) income tax and social contribution; (iii) financial result; and (iv) other operating revenues/expenses, net.

 

In 1Q16, net operating revenue, including construction revenue, reached R$ 3.0 billion; a 22.7% increase compared to the same period of 2015.

Costs and expenses, including construction costs, totaled R$ 2.4 billion, 76.3% higher than the R$ 1.4 billion recorded in 1Q15.

Adjusted EBIT, in the amount of R$ 623.1 million, dropped 43.6% from R$ 1,104.2 million recorded in 1Q15.

Adjusted EBITDA, in the amount of R$ 907.8 million, reduced 33.1% from R$ 1,357.5 million recorded in 1Q15 (R$ 3,524.6 million in the last 12 months).

The adjusted EBITDA margin was 30.0% in 1Q16, versus 55.0% in 1Q15 (28.7% in the last 12 months). Excluding construction revenues and construction costs, the adjusted EBITDA margin was 37.2% in 1Q16 (71.6% in 1Q15 and 38.8% in the last 12 months).

In 1Q16 the Company recorded a net income of R$ 628.8 million, in comparison to a net income of R$ 318.2 million in 1Q15.

 

2. Gross operating revenue

Gross operating revenue from water and sewage, not including construction revenue, totaled R$ 2.6 billion, an increase of R$ 566.1 million or 28.2%, when compared to the R$ 2.0 billion recorded in 1Q15.

The main factors that led to this variation were:

·         15.2% tariff increase (7.8% ordinary tariff adjustment and 6.9% extraordinary tariff revision) since June 2015;

 


 

·         Lower bonus granted within the Water Consumption Reduction Incentive Program, with a R$ 153.8 million impact in 1Q16, versus the R$ 211.2 million recorded in 1Q15;

·         Application of contingency tariff, in the amount of R$ 160.6 million in 1Q16 (R$ 79.3 million in 1Q15); and

·         Increase of 1.9% in the Company’s total billed volume (1.0% in water and 3.0% in sewage).

 

3. Construction revenue

Construction revenue increased R$ 36.9 million or 6.3%, when compared to the previous year. The variation was mainly due to higher investments in the municipalities served by the Company.


4. Billed volume

 

The following tables show the water and sewage billed volume, quarter-on-quarter, per customer category and region.

 

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

 

 

Water

 

 

Sewage

 

Water + Sewage

 

Category

1Q16

1Q15

%

1Q16

1Q15

%

1Q16

1Q15

%

Residential

380.4

369.1

3.1

320.3

308.7

3.8

700.7

677.8

3.4

Commercial

40.4

40.5

(0.2)

38.2

38.1

0.3

78.6

78.6

-

Industrial

7.7

8.5

(9.4)

9.5

9.9

(4.0)

17.2

18.4

(6.5)

Public

9.5

10.5

(9.5)

8.4

8.0

5.0

17.9

18.5

(3.2)

Total retail

438.0

428.6

2.2

376.4

364.7

3.2

814.4

793.3

2.7

Wholesale (3)

52.0

56.5

(8.0)

5.7

6.3

(9.5)

57.7

62.8

(8.1)

Total

490.0

485.1

1.0

382.1

371.0

3.0

872.1

856.1

1.9

                   

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

 

Water

 

Sewage

 

Water + Sewage

 

Region

1Q16

1Q15

%

1Q16

1Q15

%

1Q16

1Q15

%

Metropolitan

279.0

267.9

4.1

241.5

230.9

4.6

520.5

498.8

4.4

Regional (2)

159.0

160.7

(1.1)

134.9

133.8

0.8

293.9

294.5

(0.2)

Total retail

438.0

428.6

2.2

376.4

364.7

3.2

814.4

793.3

2.7

Wholesale (3)

52.0

56.5

(8.0)

5.7

6.3

(9.5)

57.7

62.8

(8.1)

Total

490.0

485.1

1.0

382.1

371.0

3.0

872.1

856.1

1.9

             (1) Unaudited

             (2) Including coastal and interior region

             (3) Reused water volume and non-domestic sewage are included in

 

 


 

 

5. Costs, administrative, selling and construction expenses

In 1Q16, costs, administrative, selling and construction expenses, grew 76.3% (R$ 1,041.3 million). Excluding construction costs, total costs and expenses increased by 127.4%.

Excluding the effects of the non-recurring GESP Reimbursement transaction, costs and expenses increased by 16.7%.

As a percentage of net revenue, costs and expenses were 55.3% in 1Q15 and 79.5% in 1Q16.Excluding the effects of the GESP Reimbursement effects, costs and expenses as a percentage of net revenue came to 83.5% in 1Q15.

 

       

R$ million

 

1Q16

1Q15

Chg. (R$)

%

Payroll and benefits and pension plan obligations

574.3

534.5

39.8

7.4

Supplies

36.2

48.7

(12.5)

(25.7)

Treatment supplies

75.1

72.3

2.8

3.9

Services

282.4

295.9

(13.5)

(4.6)

Electric power

240.4

159.1

81.3

51.1

General expenses

224.6

54.4

170.2

312.9

Tax expenses

20.6

19.9

0.7

3.5

São Paulo state government reimbursement

-

(696.3)

696.3

-

Sub-total

1,453.6

488.5

965.1

197.6

Depreciation and amortization

284.7

253.3

31.4

12.4

Provision for doubtful credits

56.1

47.3

8.8

18.6

Sub-total

340.8

300.6

40.2

13.4

Costs, administrative and selling expenses

1,794.4

789.1

1,005.3

127.4

Construction costs

612.4

576.4

36.0

6.2

Costs, adm., selling and construction expenses

2,406.8

1,365.5

1,041.3

76.3

% of net revenue

79.5

55.3

 

 

 

5.1. Payroll and benefits and pension plan obligations

 

In 1Q16 payroll and benefits increased R$ 39.8 million or 7.4%, due to the following:

 

·         R$ 18.8 million in the provision for the pension plan, arising from changes in actuarial assumptions;

·         R$ 14.5 million, mainly due to the average wage increase of 9.7% in May 2015 and by the application of 1% related to the career and wage plan, since July 2015; and

·         R$ 5.9 million, due to the adjustment in healthcare expenses since July 2015.

 

 5.2. Supplies

 

In 1Q16, expenses with supplies decreased R$ 12.5 million or 25.7%, from R$ 48.7 million to R$ 36.2 million, mostly due to the following:

                          

·         Fuel, in the amount of R$ 6.7 million, mostly due to the fact that the generators used to pump water from the Cantareira System technical reserve were turned off in December 2015; and

·         Lower use of materials in preventive and corrective maintenance in water and sewage systems, in computerized systems and conservation of properties and installations, in the amount of R$ 5.9 million.

 

5.3. Services

 

Services expenses, in the amount of R$ 282.4 million, dropped R$ 13.5 million or 4.6%, in comparison to R$ 295.9 million in1Q15. The main factors that led to this decrease were:

 

·         Water and sewage systems and connections maintenance, in the amount of R$ 10.3 million; and

 

 

·         Advertising campaigns, in the amount of R$ 4.0 million, mainly due to the intensification in 1Q15, for the rational use of water.

 

5.4. Electric power

 

Electric power expenses totaled R$ 240.4 million, an increase of R$ 81.3 million or 51.1% in comparison to the R$ 159.1 million in 1Q15. The main factors that contributed to this increase were:

·         Average increase of 38.3% in the regulated market tariffs, with no significant variation in consumption;

·         Average increase of 165.2% in the grid market tariffs (TUSD), with a 5.3% decrease in consumption; and

·         Average increase of 10.5% in the free market tariff, with a 7.5% decrease in consumption.

 

In 1Q16 the regulated market accounted for 39.3% of the total electric power consumed by the Company, the free market accounted for 31.0% and the grid market accounted for 29.7% of total consumption.

 

5.5. General expenses

 

General expenses increased R$ 170.2 million, totaling R$ 224.6 million, versus the R$ 54.4 million recorded in 1Q15, mainly due to:

·         R$ 138.7 million increase in the provision for lawsuits; and

·         Higher provision for the Municipal Fund for Environmental Sanitation and Infrastructure, in the amount of R$ 27.7 million, as a result of the increase in revenues with the municipality of São Paulo.

 

5.6. São Paulo state government reimbursement

 

In 1Q15, the Company entered into an agreement with the São Paulo state government to receive the undisputed amount, related to the state’s debt with the Company, for the payment of the benefits to former employees (G0) dealt with by state Law #4,819, of August 26, 1958, that generated a credit in the result in the amount of R$ 696.3 million.

 

5.7. Depreciation and amortization

 

R$ 31.4 million increase or 12.4%, reaching R$ 284.7 million in comparison to the R$ 253.3 million recorded in 1Q15, largely due to the beginning of operations of intangible assets, in the amount of R$ 2.4 billion.

 

5.8. Provision for doubtful credits

 

Increased R$ 8.8 million, mainly due to the lower recovery of amounts through settlements in 1Q16, in the amount of R$ 12.8 million, partially offset by the reduction in provisions for revenue losses, in the amount of R$ 4.0 million.

 

6. Other operating revenues (expenses), net

 

Other net operational revenues and expenses reported a negative variation of R$ 26.6 million, mainly due to the R$ 21.5 million drop from the sale of surplus electricity between the analyzed periods.

 

 

7. Financial result

       

R$ million

 

1Q16

1Q15

Chg.

%

Financial expenses, net of revenues

(99.8)

(63.8)

(36.0)

56.4

Net monetary and exchange variation

440.0

(922.0)

1,362.0

(147.7)

Financial result

340.2

(985.8)

1,326.0

(134.5)

 

 

 


 

 

7.1. Financial revenues and expenses                                                                                            

 

       

R$ million

 

1Q16

1Q15

Chg.

%

Financial expenses

 

 

 

 

Interest and charges on international loans and financing

(37.6)

(30.4)

(7.2)

23.7

Interest and charges on domestic loans and financing

(95.2)

(86.7)

(8.5)

9.8

Other financial expenses

(52.5)

(20.2)

(32.3)

159.9

Total financial expenses

(185.3)

(137.3)

(48.0)

35.0

Financial revenues

85.5

73.5

12.0

16.3

Financial expenses net of revenues

(99.8)

(63.8)

(36.0)

56.4

 

7.1.1. Financial expenses

 

Financial expenses grew R$ 48.0 million. The main reasons were:

 

·         R$ 7.2 million in interest and charges on international loans and financing, due to the increase in the debt balance, despite the depreciation of the US dollar and the Yen versus the Brazilian Real in 1Q16 (-8.9% and -2.4%, respectively);

·         R$ 8.5 million in interest and charges on domestic loans and financing, especially due to the funding of the 20th debenture issue, in December 2015; and

·         R$ 32.3 million in other financial expenses, largely due to the higher provision of interest on lawsuits in 1Q16.

 

7.1.2. Financial revenues

 

Financial revenues increased R$ 12.0 million, largely due to the increased recognition of interest on installment agreements and financial investments in 1Q16.

 

7.2. Monetary and exchange rate variation on assets and liabilities

 

       

R$ million

 

1Q16

1Q15

Chg.

%

Monetary variation on loans and financing

(52.9)

(56.2)

3.3

(5.9)

Currency exchange variation on loans and financing

483.3

(884.5)

1,367.8

(154.6)

Other monetary variations

(45.1)

(12.2)

(32.9)

269.7

Monetary/exchange rate variation on liabilities

385.3

(952.9)

1,338.2

(140.4)

Monetary/exchange rate variation on assets

54.7

30.9

23.8

77.0

Monetary/exchange rate variation, net

440.0

(922.0)

1,362.0

(147.7)

 

 

The effect in 1Q16 was R$ 1,362.0 million, lower than in 1Q15, especially due to the positive variation of R$ 1,367.8 million in expenses with exchange rate variation on loans and financing, due to the depreciation of the US dollar and the Yen versus the Brazilian Real in 1Q16 (-8.9% and -2.4%, respectively), when compared to the appreciation recorded in 1Q15 (20.8% and 20.3%, respectively). This amount was partially offset by the increase of R$ 32.9 million from higher provisions for the monetary restatement of lawsuits in 1Q16.

 

8. Income tax and social contribution

Grew R$ 507.7 million, due to the increase in taxable income in 1Q16, when compared to the net loss recorded in 1Q15.

 

9. Indicators



 

9.1. Operating

In the first quarter of 2016, due to the greater availability of water, production volume increased by 8.8%.

 

Water losses moved up this quarter, although this was already expected given that the reduction observed until now was not only due to the loss control initiatives, but was also to the water crisis and the consequent need to lower network pressures as a means of managing demand.

 

 

Operating indicators *

1Q16

1Q15

%

Water connections (1)

8,477

8,258

2.7

Sewage connections (1)

6,917

6,705

3.2

Population directly served - water (2)

25.6

25.3

1.2

Population directly served - sewage (2)

22.9

22.5

1.8

Number of employees

13,816

14,167

(2.5)

Water volume produced (3)

667

613

8.8

IPM - Measured water loss (%)

29.9

29.0

3.1

IPDt (liters/connection x day)

275

290

(5.2)

                   (1) Total connections, active and inactive, in thousand units at the end of the period

                   (2) In million inhabitants, at the end of the period. Not including wholesale

                   (3) In million of cubic meters

                   (*) Unaudited

 

 

9.2. Financial

 

Economic Indexes * (quarter end)

1Q16

1Q15

Accumulated Amplified Consumer Price Index (%)

2.62

3.83

Accumulated Referential Rate (%)

0.45

0.23

Interbank Deposit Certificate (%)

14.13

12.60

US DOLAR (R$)

3.5589

3.2080

YEN (R$)

0.03166

0.02675

  (*) Unaudited

 

10. Loans and financing

 

               

R$ million

INSTITUTION

2016

2017

2018

2019

2020

2021

2022 to 2038

Total

Local market

 

 

 

 

 

 

 

 

Caixa Econômica Federal

38.1

55.0

58.6

60.3

62.4

65.5

728.0

1,067.9

Debentures

89.6

592.8

876.2

978.9

406.1

193.1

422.8

3,559.5

BNDES

59.6

79.5

79.5

79.5

61.8

61.3

261.0

682.2

Commercial Leasing

8.3

22.0

23.3

24.7

26.3

27.9

408.0

540.5

Others

0.5

0.7

1.4

1.4

1.3

1.3

5.2

11.8

Interest and charges

58.2

12.0

0.0

0.0

0.0

0.0

0.0

70.2

Local market total

254.3

762.0

1,039.0

1,144.8

557.9

349.1

1,825.0

5,932.1

International market

 

 

 

 

 

 

 

 

IADB

117.5

202.7

113.3

113.3

113.3

113.3

1,209.2

1,982.6

IBRD

0.0

0.0

0.0

7.3

14.5

14.5

181.0

217.3

Eurobonds

498.2

0.0

0.0

0.0

1,241.7

0.0

0.0

1,739.9

JICA

34.6

70.6

72.0

116.2

116.2

116.2

1,274.5

1,800.3

BID 1983AB

85.2

85.2

84.3

63.0

60.9

27.4

52.3

458.3

Interest and charges

62.6

0.0

0.0

0.0

0.0

0.0

0.0

62.6

International market total

798.1

358.5

269.6

299.8

1,546.6

271.4

2,717.0

6,261.0

Total

1,052.4

1,120.5

1,308.6

1,444.6

2,104.5

620.5

4,542.0

12,193.1

 

 

11. Capex

In the first quarter of 2016, the Company invested R$ 665.4 million.

 

 

 

 


 

12. Conference calls

 

 

Apimec Meeting

May 17, 2016

2:00 pm (US EST) / 3:00 pm (Brasília)

Rua Nicolau Gagliardi, 313

Pinheiros

São Paulo – Brasil

 

Live webcast

Click here to access

 

 

In English

May 17, 2016

10:30 am (Brasília) / 9:30 am (US EST)

Dial in: 1 (412) 317-5486

Code: Sabesp

 

Replay available for 7 days

Dial in: 1(412) 317-0088

Code: 10078347

 

Click here to access the webcast

 

 

 

For more information, please contact:

 

Mario Arruda Sampaio

Head of Capital Markets and Investor Relations

Phone.(55 11) 3388-8664

E-mail: maasampaio@sabesp.com.br

 

Angela Beatriz Airoldi                                                                         

Investor Relations Manager

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.


 

Income Statement

 

Brazilian Corporate Law

 

R$ '000

 

1Q16

1Q15

Net Operating Revenue

3,027,842

2,468,641

Operating Costs

(1,941,276)

(1,758,677)

Gross Profit

1,086,566

709,964

Operating Expenses

 

 

Selling

(205,278)

(184,481)

Administrative revenue (expenses)

(260,194)

577,608

Other operating revenue (expenses), net 

5,482

32,057

Operating Income Before Shareholdings 

626,576

1,135,148

Equity Result 

2,087

1,114

Earnings Before Financial Results, net

628,663

1,136,262

Financial, net

(143,159)

(101,794)

Exchange gain (loss), net

483,319

(883,966)

Earnings before Income Tax and Social Contribution

968,823

150,502

Income Tax and Social Contribution

 

 

Current

(338,989)

-

Deferred

(1,045)

167,676

Net Income (loss) for the period

628,789

318,178

Registered common shares ('000)

683,509

683,509

Earnings per shares - R$ (per share)

0.92

0.47

Depreciation and Amortization

(284,656)

(253,308)

Adjusted EBITDA

907,837

1,357,513

% over net revenue

30.0%

55.0%

 

 

Net Operating Revenue Breakdown

 

R$ '000

 

1Q16

1Q15

Gross operating revenue

3,195,908

2,592,958

Water supply - retail

1,409,269

1,092,104

Water supply - wholesale

21,443

16,357

Sewage collection and treatment

1,095,489

856,367

Sewage collection and treatment - wholesale

6,656

7,557

Construction revenue - water

428,136

304,504

Construction revenue - sewage

197,144

283,962

Other services

37,771

32,107

Gross revenue deductions (Cofins/Pasep)

(168,066)

(124,317)

Net operating revenue

3,027,842

2,468,641

 

 



 

 

 


 

Balance Sheet

 

Brazilian Corporate Law

   

R$ '000

ASSETS

03/31/2016

 

12/31/2015

Current assets

 

 

 

Cash and cash equivalents

1,431,876

 

1,639,214

Trade accounts receivable

1,465,570

 

1,326,972

Accounts receivable from related parties

150,871

 

156,155

Inventories

56,714

 

64,066

Restricted cash

26,559

 

29,156

Recoverable taxes

15,931

 

77,828

Other accounts receivable

193,298

 

156,942

Total current assets

3,340,819

 

3,450,333

 

 

 

 

Noncurrent assets

 

 

 

Trade accounts receivable

163,842

 

182,616

Accounts receivable from related parties

720,473

 

715,952

Escrow deposits

82,941

 

76,663

Deferred income tax and social contribution

127,197

 

128,242

Water National Agency – ANA

89,913

 

88,368

Other accounts receivable

141,180

 

140,676

 

 

 

 

Investments

29,907

 

28,105

Investment properties

56,940

 

56,957

Intangible assets

28,893,799

 

28,513,626

Property, plant and equipment

326,581

 

325,076

Total noncurrent assets

30,632,773

 

30,256,281

 

 

 

 

Total assets

33,973,592

 

33,706,614

 

 

 

 

LIABILITIES AND EQUITY

03/31/2016

 

12/31/2015

Current liabilities

 

 

 

Trade payables and contractors

198,089

 

248,158

Current portion of long-term loans and financing

1,474,032

 

1,526,262

Accrued payroll and related charges

368,587

 

347,976

Taxes and contributions

314,830

 

107,295

Interest on shareholders' equity payable

127,441

 

127,441

Provisions

658,499

 

631,890

Services payable

482,976

 

387,279

Public-Private Partnership – PPP

33,806

 

33,255

Program Contract Commitments

209,875

 

228,659

Other liabilities

91,086

 

102,101

Total current liabilities

3,959,221

 

3,740,316

 

 

 

 

Noncurrent liabilities

 

 

 

Loans and financing

10,719,144

 

11,595,338

Deferred Cofins and Pasep

134,277

 

132,921

Provisions

493,729

 

450,324

Pension obligations

2,892,361

 

2,832,216

Public-Private Partnership – PPP

1,197,122

 

1,001,778

Program Contract Commitments

87,703

 

92,055

Other liabilities

144,640

 

145,060

Total noncurrent liabilities

15,668,976

 

16,249,692

 

 

Total liabilities

19,628,197

 

19,990,008

 

 

 

 

Equity

 

 

 

Capital stock

10,000,000

 

10,000,000

Earnings reserves

4,069,988

 

4,069,988

Other comprehensive income

(353,382)

 

(353,382)

Accrued earnings

628,789

 

-

Total equity

14,345,395

 

13,716,606

 

 

 

 

Total equity and liabilities

33,973,592

 

33,706,614

 

 

 


 

Cash Flow

 

Brazilian Corporate Law

 

R$ '000

 

 

1Q16

1Q15

Cash flow from operating activities

 

 

 

Profit before income tax and social contribution

968,823

150,502

Adjustment for:

 

 

 

Depreciation and amortization

284,656

253,308

 

Residual value of property, plant and equipment and intangible assets written-off

339

(8,301)

 

Allowance for doubtful accounts

56,078

47,343

 

Provision and inflation adjustment

122,301

(84,524)

 

Interest calculated on loans and financing payable

136,821

121,043

 

Inflation adjustment and foreign exchange gains (losses) on loans and financing

(430,351)

940,559

 

Interest and inflation adjustment losses

9,967

6,045

 

Interest and inflation adjustment gains

(50,977)

(14,807)

 

Financial charges from customers

(67,055)

(49,035)

 

Margin on intangible assets arising from concession

(12,894)

(12,090)

 

Provision for Consent Decree (TAC)

1,073

(43,148)

 

Equity result

(2,087)

(1,114)

 

Provision from São Paulo agreement

97,402

68,423

 

Provision for defined contribution plan

2,277

2,044

 

Pension obligations

102,972

81,914

 

Other adjustments

(6,900)

(3,563)

 

GESP Agreement

-

(696,283)

   

1,212,445

758,316

Changes in assets

 

 

 

Trade accounts receivable

(90,341)

2,367

 

Accounts receivable from related parties

17,534

12,556

 

Inventories

7,242

6,638

 

Recoverable taxes

61,897

(25,804)

 

Escrow deposits

9,422

(648)

 

Other accounts receivable

(32,345)

(19,428)

Changes in liabilities

 

 

 

Trade payables and contractors

(5,380)

(11,648)

 

Services received

(1,705)

15,434

 

Accrued payroll and related charges

19,538

25,774

 

Taxes and contributions payable

(85,300)

4,643

 

Deferred Cofins/Pasep

1,356

(231)

 

Provisions

(52,287)

(32,081)

 

Pension obligations

(42,827)

(39,927)

 

Other liabilities

(12,079)

(8,182)

     

 

Cash generated from operations

1,007,170

687,779

     

 

 

Interest paid

(228,369)

(193,558)

 

Income tax and contribution paid

(46,154)

(17,743)

   

 

 

Net cash generated from operating activities

732,647

476,478

   

 

 

Cash flows from investing activities

 

 

 

 

Acquisition of intangibles

(400,978)

(519,959)

 

Restricted cash

2,597

(2,131)

 

Investment increase

-

244

 

Purchases of tangible assets

(12,906)

(8,402)

Net cash used in investing activities

(411,287)

(530,248)

   

 

 

Cash flow from financing activities

 

 

 

 

Loans and financing

 

 

 

Proceeds from loans

174,708

311,671

 

Repayments of loans

(662,193)

(203,905)

 

Public-Private Partnership – PPP

(8,111)

(5,611)

 

Program Contract Commitments

(33,102)

(33,405)

Net cash generated by (used in) financing activities

(528,698)

68,750

   

Cash reduce and cash equivalents

(207,338)

14,980

       

Represented by:

   

Cash and cash equivalents at beginning of the period

1,639,214

1,722,991

Cash and cash equivalents at end of the period

1,431,876

1,737,971

Cash reduce and cash equivalents

(207,338)

14,980

 

 

 

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: May 13, 2016
 
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.