Embraer reports Q1 2020 EBITDA of USD 9.3m

Brazil-based Embraer S.A. (NYSE: ERJ) (B3: EMBR3) has reported EBIT and EBITDA in the first quarter 2020 of USD (46.9) million and USD 9.3 million, respectively, yielding EBIT margin of -7.4% and EBITDA margin of 1.5%, the company said.

This compares to EBIT of USD (15.2) million (-1.8% EBIT margin) and EBITDA of USD 30.9 million (3.8% EBITDA margin) in the first quarter 2019.

Embraer delivered five commercial jets and nine executive jets (five light/four large) in the first quarter 2020, and the Company´s firm order backlog at the end of first quarter 2020 was USD 15.9 billion.

The first quarter 2020 results include special items due to the impacts of COVID-19: 1) USD 22.2 million in negative fair value changes on the Company´s stake in Republic Airways Holdings, and USD 33.4 million in bad debt provisions on accounts receivables, as the Company adopted a more conservative approach in the context of the COVID-19 pandemic;

First quarter 2020 net loss attributable to Embraer shareholders and Loss per ADS were USD (292.0) million and USD(1.59), respectively. Adjusted net loss (excluding special items and deferred income tax and social contribution) for first quarter 2020 was USD (104.0) million, with Adjusted loss per ADS of USD (0.57). The adjusted net loss in the first quarter 2019 was USD (61.8) million, for an adjusted loss per ADS of USD (0.34) in the quarter.

Embraer reported free cash flow of USD (676.5) million in the first quarter 2020, in line with free cash flow of USD (665.3) million reported in the first quarter 2019, which is historically negative due to seasonal working capital consumption;

Embraer´s liquidity remains solid as the Company finished the quarter with total cash of USD 2,500.6 million and major debt maturities starting in 2022 onwards. Total debt at the end of the first quarter 2020 was USD 3,832.2 million, yielding a net debt position of USD 1,331.6 million versus net debt of USD 1,103.7 million in the first quarter 2019.