Central Puerto S.A (“Central Puerto” or the “Company”) (NYSE:
CEPU), the largest private sector power generation company in
Argentina, as measured by generated power, reports complementary
information for the quarter and six-month period ended on June 30,
2019 (“Second Quarter” or “2Q2019”, and “First Half” or “1H2019”,
respectively), relating to the proforma effect of the results
during the quarter of the Brigadier López Plant.
This release contains complementary information to the Financial
Results for the Quarter and First Half Ended on June 30, 2019 Press
Release issued on August 12, 2019 and provides additional unaudited
information for the convenience of the reader and should be read
together with our prior release and the Consolidated Financial
Statements for the six-month period ended on June 30, 2019.
You may find additional information on the Company
at:
- http://investors.centralpuerto.com/
- www.sec.gov
- www.cnv.gob.ar
Purchase of the Brigadier López Power Plant. On June 14,
2019, Central Puerto and IEASA (Integración Energética Argentina
S.A., a state-owned company) signed the transfer of the Brigadier
López plant.
According to the transfer contract, the legal, economic, and
other effects, were considered as of April 1, 2019. However,
applying IFRS 3, for accounting purposes, the results associated to
the Brigadier López plant have been included in Central Puerto’s
Income Statements starting on June 2019. Additionally, as a result
of the application of IFRS 3, the Company considered the trade
receivables and accounts payables of the Brigadier López plant for
the months of April and May 2019 as part of the fair value of the
assets and liabilities acquired at the acquisition date, included
in the Consolidated Statement of Financial Position. The following
chart shows the Main Financial Figures, as they were originally
reported, as further adjusted for the results for the months of
April and May 2019 associated with the Brigadier López Power Plant
as if it had been acquired as of April 1, 2019 (highlighted in
grey):
Main financial magnitudes of continuing operations
Million Ps.
2Q 2019
1Q 2019
2Q 2018
Var % (2Q/2Q)
1H 2019
1H 2018
Var % (1H/1H)
Revenues
5,819
6,829
3,350
74%
12,648
6,483
95%
Cost of sales
(3,278)
(4,007)
(1,799)
82%
(7,285)
(3,317)
120%
Gross profit
2,541
2,822
1,551
64%
5,363
3,166
69%
Administrative and selling expenses
(421)
(498)
(409)
3%
(918)
(760)
21%
Operating income before other operating
results
2,120
2,324
1,142
86%
4,445
2,407
85%
Other operating results, net1
705
3,166
7,348
(90%)
3,871
21,575
(82%)
Operating income1
2,825
5,490
8,490
(67%)
8,316
23,982
(65%)
Depreciation and Amortization
342
527
397
(14%)
868
757
15%
Adjusted EBITDA1,2
3,167
6,017
8,886
(64%)
9,184
24,739
(63%)
Add:
Acquisition of Brigadier López plant 3
633
-
-
N/A
633
-
N/A
Acquisition Adjusted EBITDA1,2
3,800
6,017
8,886
(57%)
9,817
24,739
(63%)
1. Include, among others, the following
concepts:
-
-
-
-
-
13,485
-
- Foreign Exchange Difference and interests related to FONI trade
receivables
377
3,203
7,097
(95%)
3,580
7201
(50%)
See “CVO effect” in the August 12, 2019
Press Release for further information.
Acquisition Adjusted EBITDA minus CVO
effect and Foreign exchange difference and interests related to
FONI and similar programs trade receivables
3,423
2,814
1,790
91%
6,237
4,052
54%
Acquisition Adjusted EBITDA minus CVO
effect and Foreign exchange difference and interests related to
FONI and similar programs trade receivables (convenience
translation to US$)4
81
51
42
91%
147
95
54%
Average exchange rate of period
44.01
39.01
23.58
65%
44.01
21.63
103%
Exchange rate end of period
42.46
43.35
28.85
50%
42.46
28.85
47%
NOTE: Exchange rates quoted by the Banco de la Nación Argentina
are provided only as a reference. The average exchange rate refers
to the average of the daily exchange rates quoted by the Banco de
la Nación Argentina for wire transfers (divisas) for each
period.
2. We define Adjusted EBITDA as net income for the year, plus
finance expenses, minus finance income, minus share of the profit
of associates, minus depreciation and amortization, plus income tax
expense, plus depreciation and amortization, minus net results of
discontinued operations. We define Acquisition Adjusted EBITDA as
Adjusted EBITDA as further adjusted for the results for the months
of April and May 2019 associated with the Brigadier López plant as
if it had been acquired as of April 1, 2019. See
“Disclaimer-Adjusted EBITDA” below for further information.
3. Reflects pro forma unrealized Adjusted EBITDA for the months
of April and May 2019 related to the purchase of Brigadier López
plant as if it had been acquired as of April 1, 2019. It includes
the trade receivables accrued during April and May by the Brigadier
López plant, minus the operating liabilities accrued during such
month by this plant. The June 2019 results from Brigadier López
were already included in the Income Statement for the quarter and
six-month period ended on June 30, 2019.
4. Convenience translation using the foreign exchange rate as of
June 30, 2019. As of August 15, 2019, the applicable exchange rate
was of AR$ 57.25 per US$1.00.
Disclaimer
Rounding amounts and percentages: Certain amounts and
percentages included in this release have been rounded for ease of
presentation. Percentage figures included in this release have not
in all cases been calculated on the basis of such rounded figures,
but on the basis of such amounts prior to rounding. For this
reason, certain percentage amounts in this release may vary from
those obtained by performing the same calculations using the
figures in the financial statements. In addition, certain other
amounts that appear in this release may not sum due to
rounding.
This release contains certain metrics, including information per
share, operating information, and others, which do not have
standardized meanings or standard methods of calculation and
therefore such measures may not be comparable to similar measures
used by other companies. Such metrics have been included herein to
provide readers with additional measures to evaluate the Company’s
performance; however, such measures are not reliable indicators of
the future performance of the Company and future performance may
not compare to the performance in previous periods.
OTHER INFORMATION
Central Puerto routinely posts important information for
investors in the Investor Relations support section on its website,
www.centralpuerto.com. From time to time, Central Puerto may use
its website as a channel of distribution of material Company
information. Accordingly, investors should monitor Central Puerto’s
Investor Support website, in addition to following the Company’s
press releases, SEC filings, public conference calls and webcasts.
The information contained on, or that may be accessed through, the
Company’s website is not incorporated by reference into, and is not
a part of, this release.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING
INFORMATION
This release contains certain forward-looking information and
forward-looking statements as defined in applicable securities laws
(collectively referred to in this Earnings Release as
“forward-looking statements”) that constitute forward-looking
statements. All statements other than statements of historical fact
are forward-looking statements. The words ‘‘anticipate’’,
‘‘believe’’, ‘‘could’’, ‘‘expect’’, ‘‘should’’, ‘‘plan’’,
‘‘intend’’, ‘‘will’’, ‘‘estimate’’ and ‘‘potential’’, and similar
expressions, as they relate to the Company, are intended to
identify forward-looking statements.
Statements regarding possible or assumed future results of
operations, business strategies, financing plans, competitive
position, industry environment, potential growth opportunities, the
effects of future regulation and the effects of competition,
expected power generation and capital expenditures plan, are
examples of forward-looking statements. Forward-looking statements
are necessarily based upon a number of factors and assumptions
that, while considered reasonable by management, are inherently
subject to significant business, economic and competitive
uncertainties and contingencies, which may cause the actual
results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements.
The Company assumes no obligation to update forward-looking
statements except as required under securities laws. Further
information concerning risks and uncertainties associated with
these forward-looking statements and the Company’s business can be
found in the Company’s public disclosures filed on EDGAR
(www.sec.gov).
Adjusted EBITDA and Acquisition Adjusted EBITDA
In this release, Adjusted EBITDA, a non-IFRS financial measure,
is defined as net income for the year, plus finance expenses, minus
finance income, minus share of the profit of associates, minus
depreciation and amortization, plus income tax expense, plus
depreciation and amortization, minus net results of discontinued
operations. Acquisition Adjusted EBITDA is defined as Adjusted
EBITDA as further adjusted for the results for the months of April
and May 2019 associated with the Brigadier López plant as if it had
been acquired as of April 1, 2019. These adjustments include the
trade receivables accrued during April and May by the Brigadier
López plant, minus the operating liabilities accrued during such
month by said plant. This information is based, among other
factors, on certain historical unaudited financial information
provided to the Company by IEASA, Brigadier López plant’s previous
owner. The Acquisition Adjusted EBITDA is for illustrative purposes
only and is not necessarily indicative of the operating results
that would have been achieved if the acquisition of the Brigadier
López Plant had been completed and accounted for at, and as of, the
beginning of the period for the periods presented, nor does it
purport to project the results of operations of the Company for any
future period or as of any future date. The Acquisition Adjusted
EBITDA may not be useful in predicting the results of operations of
the Company in the future.
Adjusted EBITDA is believed to provide useful supplemental
information to investors about the Company and its results.
Adjusted EBITDA is among the measures used by the Company’s
management team to evaluate the financial and operating performance
and make day-to-day financial and operating decisions. In addition,
Adjusted EBITDA is frequently used by securities analysts,
investors and other parties to evaluate companies in the industry.
Adjusted EBITDA is believed to be helpful to investors because it
provides additional information about trends in the core operating
performance prior to considering the impact of capital structure,
depreciation, amortization and taxation on the results.
Adjusted EBITDA should not be considered in isolation or as a
substitute for other measures of financial performance reported in
accordance with IFRS. Adjusted EBITDA has limitations as an
analytical tool, including:
• Adjusted EBITDA does not reflect changes in, including cash
requirements for, our working capital needs or contractual
commitments;
• Adjusted EBITDA does not reflect our finance expenses, or the
cash requirements to service interest or principal payments on our
indebtedness, or interest income or other finance income;
• Adjusted EBITDA does not reflect our income tax expense or the
cash requirements to pay our income taxes;
• although depreciation and amortization are non-cash charges,
the assets being depreciated or amortized often will need to be
replaced in the future, and Adjusted EBITDA does not reflect any
cash requirements for these replacements;
• although share of the profit of associates is a non-cash
charge, Adjusted EBITDA does not consider the potential collection
of dividends; and
• other companies may calculate Adjusted EBITDA differently,
limiting its usefulness as a comparative measure.
The Company compensates for the inherent limitations associated
with using Adjusted EBITDA through disclosure of these limitations,
presentation of the Company’s consolidated financial statements in
accordance with IFRS and reconciliation of Adjusted EBITDA to the
most directly comparable IFRS measure, net income. For a
reconciliation of the net income to Adjusted EBITDA, see the tables
included in the August 12, 2019 release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190816005287/en/
Tomás Arshak Daghlian Investor Relations Officer Central
Puerto S.A. Tel. +54 (11) 4317-5000 (ext. 2192) Tel. +54 (11)
4129-1600 (ext. 2192) tomas.daghlian@centralpuerto.com
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