Ambipar Emergency Response(US:AMBI)2024-06-17 22:40Financial Performance - Net revenue for the first quarter of 2024 was R$679,067, representing a 13.9% increase from R$596,255 in the same period of 2023[4]. - Gross profit for Q1 2024 was R$129,352, compared to R$111,143 in Q1 2023, indicating a growth of 16.4%[4]. - The company reported a net income of R$33,201 for Q1 2024, a significant recovery from a net loss of R$67,601 in Q1 2023[4][6]. - Earnings per share (basic) improved to R$0.60 in Q1 2024, compared to a loss of R$0.35 in Q1 2023[4]. - Total comprehensive income for Q1 2024 was a loss of R$91,474, an improvement from a loss of R$168,406 in Q1 2023[6]. - For the three months ended March 31, 2024, Ambipar Emergency Response reported a profit of R$33,201 thousand, a significant improvement from a loss of R$67,601 thousand in the same period of 2023[9]. - Cash generated from operating activities was R$235,544 thousand, compared to a cash used of R$31,539 thousand in the prior year, indicating a turnaround in operational efficiency[9]. - Net cash from operations reached R$126,279 thousand, a recovery from a negative cash flow of R$105,531 thousand in the same quarter of 2023[9]. - Total revenue for the company reached $303.484 million, with a gross profit of $84.297 million, indicating a gross margin of approximately 27.8%[180]. - The company reported a profit for the year of $61.648 million, with a profit attributable to controlling shareholders of $35.299 million[180]. Assets and Liabilities - As of March 31, 2024, total assets increased to R$4,453,778, up from R$4,309,172 as of December 31, 2023, reflecting a growth of approximately 3.35%[2][3]. - Total current liabilities decreased to R$710,157 as of March 31, 2024, down from R$803,022 at the end of 2023, a reduction of approximately 11.5%[3]. - Total non-current liabilities rose to R$2,340,134 as of March 31, 2024, compared to R$2,149,353 at the end of 2023, an increase of approximately 8.9%[3]. - The company’s cash and cash equivalents increased to R$532,929 as of March 31, 2024, up from R$423,266 at the end of 2023, marking a growth of 25.9%[2]. - Current net assets amounted to $156.062 million, reflecting a strong liquidity position[180]. - Non-current net assets totaled $665.598 million, contributing to a total net asset value of $821.660 million[180]. Investments and Acquisitions - The company completed a business combination with HPX Corp, resulting in a 70.8% ownership interest held by Ambipar Group post-transaction[13]. - The company announced the acquisition of 51% of Ambipar Response Tank Cleaning S.A. in July 2023, which has a 100% stake in Ambipar C-Safety Comércio, Indústria e Serviços Ltda, consolidating its market position[28]. - Ambipar Response Marine S.A. acquired 60% of the share capital of Zenith Marítima Eireli in September 2023, expanding its service offerings in maritime emergency response[29]. - The group has a 70% interest in Ambipar Response ES, which controls several subsidiaries, including Ambipar Response Remediation S.A. with a 51% stake, indicating a strong foothold in environmental services[30]. - In September 2023, the company announced the acquisition of 70% of the share capital of SMR Socorro Médico e Resgate Ltda, enhancing its emergency medical services capabilities[33]. - The acquisition of 70% of the share capital of SSMR Saúde Ocupacional Ltda. Epp in September 2023 further diversifies the company's service portfolio in occupational health and safety[33]. - Ambipar Response Dracares Apoio Marítimo e Portuário Ltda announced the acquisition of 80% of Girassol Apoio Marítimo Ltda in February 2023, strengthening its maritime support services[23]. - Ambipar Holding Canada Inc. established a new holding company, Ambipar Response Industrial Services Canada, transferring all operating companies of "Industrial Services" and acquiring 100% of 1653395 Alberta Ltda, resulting in a 70% control of the new entity[34]. - Ambipar Tank Cleaning S/A announced the acquisition of 51% of Unidroid, giving the Group a 26.01% control over the subsidiary[35]. Operational Efficiency and Cost Management - The company maintains a strong focus on operational efficiency and cost control to enhance profitability[180]. - Operating profit was reported at $97.910 million, showcasing effective cost management strategies[180]. - The company has established a financial risk management program focusing on market risks, including interest rate and foreign currency risks, to minimize adverse effects on financial performance[195]. - The management believes that the risk of significant changes in income and cash flows due to interest rate fluctuations is low, given the structure of its debt[199]. Financial Reporting and Compliance - The Unaudited Condensed Consolidated Interim Financial Statements are expressed in thousands of Brazilian Reais (R$) for the three months ended March 31, 2024 and 2023[37]. - The financial statements reflect a reorganization where Emergência Participações S.A. became a wholly owned subsidiary of Ambipar Emergency Response in March 2023[38]. - Management confirmed that all relevant information for the financial statements corresponds to that used in administration, prepared on a historical cost basis[42]. - The Company is evaluating the impact of new IFRS standards, including IFRS 17 and amendments to IAS 1, which may affect future financial statements[46][49]. - The Company has determined that the adoption of IFRS 17 had no effect on its consolidated annual financial statements[48]. - The financial statements include results from all subsidiaries, with intra-Group balances and transactions eliminated in full[45]. - Management's estimates and assumptions in preparing the financial statements may lead to significant adjustments in future years[41]. Revenue Recognition - Revenue is recognized when control of services is transferred to customers, with specific criteria for each activity[157]. - The company generates revenue from emergency services, including environmental response to disasters, with pricing based on daily, hourly, or job rates[159]. - The company recognizes revenue over time as services are performed, using the input method based on time and materials incurred[160]. Risk Management - Interest rate risk is associated with loans pegged to long-term interest rates, with a significant portion of loans linked to fixed rates, minimizing the risk of significant changes in income and cash flows[199]. - The company does not have operations quoted at commodity prices, thus it has no exposure to commodity price risks[195]. - Financial instruments are recognized at fair value plus any transaction costs directly attributed to their acquisition or issue[192]. - The management of financial risks is conducted through conservative strategies aimed at liquidity, profitability, and safety[190].