Consolidated net income of R$ 41,3 million and operating cash generation (adjusted EBITDA) of R$ 453 million.
Main factors that lead to the positive result of SCL and each of its companies:
Strategic Management directed to results, which, in recent years, focused on balancing capital structure, rescheduling the debt profile, reducing operational costs and boarding cash generation;
Completion of the sales operation of subsidiary Cat-Leo Energia, for R$ 176 million, a gain of R$ 36,7 million (before taxes), and transfer of debts of sold power plants, in the amount of R$ 89 million;
Completion of the first tariff review cycle for all Cataguazes-Leopoldina Systems companies;
Focus on the delinquency reduction and recovery of credits. The consolidated default rate of Cataguazes-Leopoldina System’s consumers decreased by approximately 22%, in 2005, and the number of pending months of accounts receivable was reduced by 7.7%;
Negotiations to recover credits involving historical electric energy debts from several state institutions, and payments of taxes related to CELB and Saelpa. These operations gave rise to a matching of accounts between the Paraíba State Government and 213 municipalities, allowing for the reversal of allowance for doubtful accounts in the amount of R$ 29,1 million;
Controlable operating costs management of the distribution has increase the operating margin and the cash general continuously. In the last 4 years the growth of adjusted EBITDA reached an average value of 24.4 % per annum;
Contracting structured credit operations which enable the rescheduling and reduction of financial costs, such as: i) funding of R$ 210 million through the Investment Fund in Credit Rights (FIDC), distributed among the SCL companies, ii) obtaining R$ 215 million in syndicated loans directed at the SCL subsidiaries located in the Northeastern Region, and iii) by means of CFLCL, first issue of securities in the Short-Term Note program in the foreign market, in the amount of US$ 31 million, out of a total authorized of US$ 150 million;
Companys One Hundredth Anniversary on February 26, 2005;
Significant Subsequent Events
January 2006: end of judicial disputes with Alliant Energy Holdings do Brasil Ltda. (AEHB), with Sobrapar, Sociedade Brasileira de Organização e Participações Ltda., and its controlling party, Mr. Antônio José de Almeida Carneiro, joining the Company as new partners;
In February 21, 2006, the Board of Directors resolved on increasing the Companys capital by R$ 100 million, through the private subscription of 43,859,650,000 new common shares;
In February 2006, funding of the second tranche of the Short Term Note program, of US$ 150 million, in the amount of US$ 16 million;
On April 20, 2006, Multipar S/A, a company controlled by CFLCL, acquired the total Sobrapars interest in Energia do Brasil, for the total amount of R$ 361,1 million. Accordingly, CFLCL now directly and indirectly holds over 99% of interest in the following companies: Energisa, PBPart-SE-1, UTEJF, and Energipe. This increase in interest is much more significant since it will provide more efficient conditions for implementing the segregation of activities, as imposed by Law # 10,848/2004.
In May 2006, Mr. Antônio José de Almeida Carneiro acquired Sobrapar 14,248,816,016 common shares issued by Gipar S.A. These same shares were sold to Mr. Ivan Muller Botelho, CFLCL’s largest shareholder. This acquistion represents 26.38% of Gipar’s capital stock, which is the holder of 31.23% of the subsidiary CFLCL.
Main Consolidated Indicators
Financial Indicators 2005 (R$ million)
2005
2004
2003
2002
2001
Gross operating income
1,972
1,619
1,316
1,052
1,063
Net operating income
1,401
1,186
997
815
871
Operating expenses
1,032
929
767
654
738
Income from electric utility services
369,2
257,7
230,8
160,9
133,0
Adjusted EBITDA
453,4
382,9
312,6
225,9
188,5
Net financial income (expense)
(225,7)
(199,0)
(180,4)
(228,0)
(127,3)
Net income (loss)
41,3
(18,6)
16,9
(73,0)
(0,7)
Adjusted EBITDA margin %
32.3
32.3
31.3
27.7
21.6
Total assets
3,016
2,977
2,928
2,753
2,537
Permanent assets
1,729
1,882
1,809
1,780
1,694
Shareholders equity
296,2
273,6
308,5
288,3
361,3
Total gross debt
1,253
1,170
1,099
1,158
1,050
Gross debt in foreign currency
77
8
11
16
12
Net debt
1,056
1,085
1,039
1,103
1,043
Net debt / Adjusted EBITDA (times)
2.3 x
2.8 x
3.3 x
4.9 x
5.5 x
Investments
200,1
193,7
193,5
188,0
202,2
Operating indicators
Number of municipalities covered
355
355
355
355
355
Population served (million)
6,5
6,4
6,4
6,3
6,3
Number of employees
4,000
4,009
3,487
2,891
2,793
Number of employees in distribution companies (own + outsourced)
3,997
3,922
3,960
4,299
4,258
Number of consumers (thousand)
1,891
1,838
1,774
1,706
1,656
Consumers/number of employees in distribution companies