PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
Jd. Aeroporto
04630-000 São Paulo, São Paulo
Federative Republic of Brazil
annual reports under cover Form 20-F or Form 40-F.
Form 20-F ___X___ Form 40-F ______
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___
registrant in connection with Rule 12g3-2(b):
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GOL Reviews Financial Outlook |
São Paulo, November 1, 2018 - GOL Linhas Aéreas Inteligentes S.A. (“GOL” or “Company”), (NYSE: GOL and B3: GOLL4), Brazil’s #1 airline, reviews its financial outlook for 2018 and 2019. Guidance is adjusted to reflect competitor capacity movements, recent variations in oil prices, the appreciation of the USD versus the BRL, initial results of the introduction of 737 Max aircraft into the fleet, yield management activities and lower tax credit utilization.
The Company’s guidance highlights key metrics which impact financial results and drive long-term shareholder value. GOL provides forward-looking information that is focused on the main metrics the Company uses to measure business performance. These indicators are useful for investors and analysts who project GOL’s results.
|
Financial Outlook |
2018E |
2019E | |||
|
(Consolidated, IFRS) |
Previous |
Revised |
|
Previous |
Revised |
|
Total fleet (average) |
117 |
118 |
|
122 to 124 |
121 to 123 |
|
Total Operational fleet (average) |
110 |
110 |
|
116 |
115 |
|
ASKs, System (% change) |
1 to 2 |
1 to 2 |
|
5 to 10 |
5 to 10 |
|
- Domestic |
0 to 2 |
0 to 2 |
|
1 to 3 |
1 to 3 |
|
- International |
6 to 8 |
6 to 8 |
|
30 to 40 |
30 to 40 |
|
Seats, System (% change) |
0 to 2 |
0 to 2 |
|
3 to 5 |
2 to 4 |
|
Departures, System (% change) |
0 to 2 |
0 to 2 |
|
2 to 5 |
2 to 5 |
|
Average load factor (%) |
79 to 80 |
79 to 80 |
|
79 to 81 |
79 to 81 |
|
Ancillary revenues1 (R$ billion) |
~ 1.0 |
~ 1.0 |
|
~ 1.3 |
~ 1.2 |
|
Total net revenues (R$ billion) |
~ 11.5 |
~ 11.5 |
|
~ 12.5 |
~ 12.8 |
|
Non-fuel CASK (R$ cents) |
~ 13.5 |
~ 13.5 |
|
~ 14 |
~ 14 |
|
Fuel liters consumed (mm) |
~ 1,370 |
~ 1,370 |
|
~ 1,420 |
~ 1,420 |
|
Fuel price (R$/liter) |
~ 2.9 |
~ 2.9 |
|
~ 2.9 |
~ 2.9 |
|
EBITDA margin (%) |
~ 16 |
~ 16 |
|
~ 17 |
~ 17 |
|
Operating (EBIT) margin (%) |
~ 11 |
~ 11 |
|
~ 12 |
~ 12 |
|
Net financial expense2 (R$ mm) |
~ 800 |
~ 800 |
|
~ 500 |
~ 500 |
|
Pre-tax margin2 (%) |
~ 4 |
~ 4 |
|
~ 8 |
~ 8 |
|
Effective income tax rate (%) |
~ 23 |
~ 23 |
|
~ 10 |
~ 10 |
|
Minority interest3 (R$ mm) |
~289 |
~ 280 |
|
* |
* |
|
Capital expenditures, net (R$ mm) |
~ 750 |
~ 750 |
|
~ 600 |
~ 600 |
|
Net Debt4 / EBITDA (x) |
~ 2.8x |
~ 2.6x |
|
~ 2.5x |
~ 2.5x |
|
Aircraft rent (R$ mm) |
~ 1,100 |
~ 1,100 |
|
~ 1,000 |
~ 1,000 |
|
Fully-diluted shares out. (million) |
348.7 |
348.7 |
|
348.7 |
348.7 |
|
Earnings per share, fully diluted2 (R$) |
0.10 to 0.30 |
0.05 to 0.25 |
|
1.50 to 1.90 |
1.50 to 1.90 |
|
Earnings per share, fully diluted (R$) |
(1.20) to (1.00) |
(2.00) to (1.80) |
|
1.50 to 1.90 |
1.50 to 1.90 |
|
Fully-diluted ADS out. (million) |
174.4 |
174.4 |
|
174.4 |
174.4 |
|
Earnings per ADS, fully diluted2 (US$) |
0.05 to 0.15 |
0.03 to 0.10 |
|
0.80 to 1.20 |
0.80 to 1.20 |
|
Earnings per ADS, fully diluted (US$) |
(0.60) to (0.50) |
(1.10) to (1.00) |
|
0.80 to 1.20 |
0.80 to 1.20 |
(1) Cargo, loyalty, buy-on-board and other ancillary revenues; (2) Excluding currency gains and losses; (3) Average of analyst estimates (Source: Bloomberg); (4) Excluding perpetual bonds; (*) Not provided.
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1 |
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GOL Linhas Aéreas Inteligentes S.A.
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GOL Reviews Financial Outlook |
The current guidance may be adjusted in order to incorporate the evolution of GOL’s operating and financial performance and any eventual changes to the Brazilian economy and GOL’s broader economic environment, including variations in economic growth, interest rates, exchange rates, and international oil price trends.
Investor Relations
ri@voegol.com.br
www.voegol.com.br/ir
+55 (11) 2128-4700
About GOL Linhas Aéreas Inteligentes S.A.
GOL serves more than 30 million passengers annually. With Brazil’s largest network, GOL offers customers more than 700 daily flights to 67 destinations in 10 countries in South America and the Caribbean. GOLLOG is a leading cargo transportation and logistics business serving more than 3,400 Brazilian municipalities and, through partners, more than 200 international destinations in 95 countries. SMILES is one of the largest coalition loyalty programs in Latin America, with over 14 million registered participants, allowing clients to accumulate miles and redeem tickets for more than 700 locations worldwide. Headquartered in São Paulo, GOL has a team of more than 15,000 highly skilled aviation professionals and operates a fleet of 120 Boeing 737 aircraft, with a further 133 Boeing 737 MAX on order, delivering Brazil's top on-time performance and an industry leading 17 year safety record. GOL has invested billions of Reais in facilities, products and services and technology to enhance the customer experience in the air and on the ground. GOL's shares are traded on the NYSE (GOL) and the B3 (GOLL4). For further information, visit www.voegol.com.br/ir.
Disclaimer
This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of GOL. These are merely projections and, as such, are based exclusively on the expectations of GOL’s management. Such forward-looking statements depend, substantially, on external factors, in addition to the risks disclosed in GOL’s filed disclosure documents and are, therefore, subject to change without prior notice. The Company's non-financial information was not reviewed by the independent auditors.
Non-GAAP Measures
To be consistent with industry practice, we disclose so-called non-GAAP financial measures which are not recognized under IFRS or U.S. GAAP, including “Net Debt”, “Adjusted Net Debt”, ”total liquidity”, "EBITDA" and EBITDAR”. Our management believes that disclosure of non-GAAP measures provides useful information to investors, financial analysts and the public in their review of our operating performance and their comparison of our operating performance to the operating performance of other companies in the same industry and other industries. However, these non-GAAP items do not have standardized meanings and may not be directly comparable to similarly-titled items adopted by other companies. Potential investors should not rely on information not recognized under IFRS as a substitute for the GAAP measures of earnings or liquidity in making an investment decision.
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GOL LINHAS AÉREAS INTELIGENTES S.A. | ||
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By: |
/S/ Richard Freeman Lark Junior | |
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Name: Richard Freeman Lark Junior
Title: Investor Relations Officer | ||
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 offuture 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 a ctually 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.