Atento Reports Fiscal 2022 Third Quarter and Nine Month Results

Reached lock-up extension with major shareholders committed to growing the Company

Due to challenging macroeconomic conditions, management revising 2022 EBITDA margin guidance range to 10.5% to 11.0% from 11.5% to 12.5% and Leverage Ratio range to 4.0x to 4.5x from 3.0x to 3.5x

NEW YORK, Nov. 15, 2022 /PRNewswire/ -- Atento S.A. (NYSE: ATTO) ("Atento" or the "Company"), the largest provider of customer relationship management and business process outsourcing ("CRM BPO") services in Latin America and among the top providers globally, announced today its third quarter operating and financial results for the period ending September 30, 2022. All comparisons in this announcement are year-over-year (YoY) and in constant-currency (CCY), unless otherwise noted.   

On track for another great year in TCV sales

• Total Contract Value of sales (TCV) increased 10.3% YoY to $86.8 million
• Revenue decreased 0.4% to $346.8 million, mainly due to lower-than-expected volumes related to deteriorating economic conditions in Brazil and Telefónica's (TEF) cost-cutting program in these challenging macro-economic conditions; all partially offset by inflation pass-through
• Multisector revenue decreased 1.4%, mainly due to a 6.0% decrease in Brazil on volumes below internal forecasts and corporate decision of terminating low margin contracts, partially offset by strong Multisector growth in EMEA
• TEF revenue increased 1.7% on 11.9% and 7.6% increases in the Americas and EMEA, respectively, while decreasing 13.6% in Brazil

EBITDA margin increased 3.3 p.p. sequentially on improved operational efficiency

• On a sequential basis, EBITDA increased 42.1% to $38.4 million in constant currency, mainly due to higher operating efficiencies related to Atento's cost reduction program as well as to lower severance and ramp-up costs. Year-over-year (YoY), EBITDA decreased 22.7%, mainly due to aforementioned factors in Brazil, partially offset by Multisector growth in EMEA
• EBITDA margin increased 3.3 p.p. sequentially to 11.1%, while contracting 2.8% YoY
• Net profit improved $13.2 million YoY to $1.5 million, or EPS of $0.10, on operating profit of $7.9 million, a $32.4 million improvement in net financial expenses resulting from the appreciation of the US dollar against the Euro, and a $2.7 million change in fair value of currency hedges
• Cash financial costs were $46.1 million, $19.6 million of which was a bond interest payment, $22.5 million in payments related to currency hedges and $4.0 million in other interest expenses
• Operating cash flow was $8.1 million, up sequentially from $7.7 million on lower operating costs and down from $25.9 million in 3Q21
• Free cash flow was negative $38.0 million, down from $6.7 million in 3Q21, mostly due to aforementioned financial costs related to bond and currency hedges

Renewed all revolving credit facilities and active cross currency management

• Quarter-end cash position of $66 million that includes $76 million drawn from existing credit facilities
• At the end of 3Q22, LTM net debt-to-EBITDA was 6.1x, or 4.3x when excluding one-time impact of cyber costs on EBITDA. LTM leverage ration
• Shareholders' equity was negative $164.1 million at September 30, 2022, mainly due to $47.4 million in financial items consisting of $20.5 million in balance sheet and P&L conversion, $7.1 million in net financial costs, partially offset by a positive $2.7 million change in the fair value of currency hedges and $1.2 million related to accounting treatment of hedges
• On July 27, 2022, Atento Luxco 1 S.A. unwound the full PEN/USD cross-currency swap entered with Morgan Stanley on March 10, 2021. The proceeds were used to decrease the % CDI with Morgan Stanley BRL swap. The floating leg was reduced from 142.25% to 133.45% CDI (Brazilian Interbank Market Rate).

Planned annualized cost savings increased to $45 million from $25 million under expanded cost reduction program

• Year-to-date, achieved approximately $10 million of $15 million in targeted 2022 cost reductions, resulting from consolidation of service delivery centers, lower headcount, rationalization of third-party services and improved procurement efficiency
• Targeting an additional $20 million in annualized cost savings by reducing additional corporate overhead and further increasing operational efficiency of service delivery
• Inflation pass-through (IPT) at 88% year-to-date

Opening new call center in Philippines

• Major contract won with a global fintech and payments company, following opening of new call center in Philippines

Summarized Consolidated Financials

($ in millions except EPS)	Q3 2022	Q3 2021	CCY Growth YoY (1)	Q2 2022	CCY Growth QoQ (1)	YTD 2022	YTD 2021	CCY Growth (1)
Income Statement
Revenue	346.8	368.6	-0.4 %	363.8	1.3 %	1067.2	1122.0	-2.3 %
EBITDA (2)	38.4	51.3	-22.7 %	28.5	42.1 %	101.9	141.1	-27.0 %
EBITDA Margin	11.1 %	13.9 %	-2.8 p.p.	7.8 %	3.3 p.p.	9.5 %	12.6 %	-3.1 p.p.
Net Loss (3)	1.5	(11.7)	-113.3 %	(12.1)	-112.3 %	(81.5)	(46.6)	-75.3 %
Earnings Per Share on the reverse split basis (2) (3) (5)	$0.10	($0.83)	N.M.	($0.83)	N.M.	($5.58)	($3.31)	N.M.
Cash Flow, Debt and Leverage
Net Cash Used in Operating Activities	(13.6)	26.7	-	27.5	-	(16.9)	41.1	-
Cash and Cash Equivalents	66.3	145.6	-	102.9	-	66.3	145.6	-
Net Debt (4)	649.2	589.5	-	633.1	-	649.2 Werbung Mehr Nachrichten zur Atento Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 31.05.24 - PR Newswire Fidelity Japan Trust Plc - Transaction in Own Shares 31.05.24 - PR Newswire Ashoka WhiteOak Emerging Markets Trust Plc - Total Voting Rights JETZT investieren!?    East Africa Metals: Widerstand gebrochen und neues Jahreshoch! weiterlesen» Anzeige wo-site-teaser-box-17129_site-teaser-box_2024-06-01_09%253A00%253A00_2024-06-02_09%253A00%253A59