Earnings Release 1T15

8/20/2019 Earnings Release 1T15

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TELECONFERENCE

English

Date: 05/13/2015| Hour: 12h00 p.m. (BRST)

Phone: 1(412) 317-6776| Password: DASA

Pedro de Godoy Bueno

CEO

Carlos de BarrosCFO

Paulo Bokel

Investor Relations and Finance Officer

[email protected]

Phone: (05511) 4197-5410

Fac Smile: (05511) 4197-5516

www.dasa3.com.br

1st QUARTER2015 RESULTS

DASA announces growth of 2.4% in 1Q15

Gross Revenue of R$750.5 million in 1Q15

DASA ON

Bovespa: DASA3

Last Quoted price:

R$9.80

Average daily trade volume

R$0.3 Million in 1T15

Market value

R$3.1 billion

US$1.0 billion

Free Float: 25.3%

mailto:[email protected]:[email protected]://www.dasa3.com.br/http://www.dasa3.com.br/mailto:[email protected]


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1st QUARTER 2015 RESULTS

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Barueri, May 12th, 2015:

Diagnósticos da América S.A. – DASA (BOVESPA: DASA3) has announced today the results related to the first quarter of 2015.The company’s operational and financial information are calculated on a consolidated basis and in million of Reais, based onaccounting practices extracted from the Brazilian Corporate Law, except where stated otherwise. The information hereinrefers to the Company’s performance in the first quarter of the year 2015, compared to the first quarter of the year 2015,except where stated otherwise. The numbers of 1Q15 for the companies Pro-Echo Cardiotada Serviços Médicos Ltda. and LafêServiços Diagnósticos Ltda. were not consolidated except where otherwise indicated. In the Accounting Financial Statementsfor the quarter ended 03.31.2015, Pro-Echo’s and Lafê’s balance sheets dated March 31, 2015 are included in the accountsAssets and Liabilities of Discontinued Operations whereas their income statements for the quarter ended 03.31.2014 areincluded in the account Discontinued Operations in the Company’s income statement.

In this quarter, DASA reached gross revenue of R$750.5 million with a 2.4% growth incomparison to 1Q14 revenue of R$733.0 million.

We had 61 working days in 1Q15, same number of 1Q14.

The gross revenue per working day reached R$12.3 million in the 1Q15, an increase of 2.4%compared to 1Q14 (R$12.0 million).

The outpatient market reached a gross revenue of R$551.0 million in 1Q15 with a 2.1% growth

when compared to 1Q14, representing 73.4% of DASA’s total gross revenue.

The hospital market gross revenue reached R$70.9 million in the 1Q15, with 4.5% increase whencompared to 1Q14, equivalent to 9.4% of DASA’s total revenue.

The lab-to-lab market ended the quarter with 5,123 customers serviced in the country. Thegross revenue of this market expanded by 11.7% in the 1Q15, reaching R$88.4 million, whichrepresents 11.8% of DASA’s total revenue.

The public market reached gross revenue of R$40.2 million in 1Q15, a decrease of 13.7%, whichrepresents 5.4% of the total revenue of DASA.

Financial performance highlights


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Revenue per business (R$ million) – Markets

Revenue per Line of Service (R$ million) – Clinical Analysis X RID

The revenue of the same units (PSC) grew by 7.8% in the 1Q15, when compared to 1Q14.

We ended the quarter with 504 units, of which 64 are hospital units.

In 1Q15, EBITDA amounted R$68.7 million, compared to R$112.6 million in 1Q14,representing 10.1% of net revenue. This number includes Proecho and Lafê companies,in compliance with Instruction CVM nº 527. Without Proecho and Lafê, the Ebitda wouldbe R$65.4 million.

CAPEX investments in 1Q15 totaled R$41.8 million. These investments were directed to: (i)development and deployment of production systems and services and renovation of technology,

497.5515.8

235.5 234.7

1Q14 1Q15

RID Clinical Analysis

733.0 750.5

3.7%

-0.4%

2.4%

67.9%

32.1% 31.3%

68.7%

551.0539.5

70.967.8

88.479.1

40.246.6

1Q14 1Q15

Outpatient Inpatient Lab to Lab Public Sector

6.4%

10.8%

2.4%

11.7%

2.1% 73.4%

11.8%

733.0

73.6%

5.4%-13.7%

9.4%

9.3%

4.5%

750.5


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(ii) the acquisition, renovation and expansion of existing units and (iii) purchase of imagingequipment.

* Do not include 30 PSCs and 2 Hospitals of Proecho and Lafê in 1Q15

Two papers were published by DASA group doctors in Radiology magazine, which is the mostimportant publication in the world specializing in the subject.

Operational highlights

Highlights 1Q14 1Q15 ∆ %

Total Gross Revenue (R$ MM) 733.0 750.5 2.4%

Outpatient Revenue (R$ MM) 539.5 551.0 2.1%

Hospitals Revenue (R$ MM) 67.8 70.9 4.5%

Lab-to-lab Gross Revenue 79.1 88.4 11.7%

Public Gross Revenue 46.6 40.2 -13.7%

Working days 61 61 0.0%

Gross Revenue (R$ MM) / Working day 12.0 12.3 2.4%

N° Total units* 516 504 -2.3%

N° PSCs* 453 440 -2.9%

N° Hospital units* 63 64 1.6%

EBITDA (R$ MM) 112.6 68.7 -39.0%

Ebitda margin (%) 17.0% 10.1% -6.9 p.p

Net income (R$ MM) 28.7 0.3 -98.8%

CAPEX (R$ MM) 30.2 41.8 38.6%

Same Units Sales - Outpatient (%) 12.0% 7.8% -4.2 p.p


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Outpatient Market

Revenue per Line of Service (R$ million) Revenue per brand (R$ million)

The company is pursuing the strategy of refurbishing its units to increasethe service capacity, services offered and comfort in the provision ofthese services, in addition to expand our capillarity.

The standard segment expanded by 1.6%, and in premium andexecutive segment, the growth was 2.4%.

Average Requisition Price (R$) and Requisition Volume (million)

Financial performance

326.2333.5

213.4217.5

1Q14 1Q15Clinical Analysis RID

60.5%

39.5%

539.5 551.0

39.5%

60.5%

1.9%

2.1%

2.2%

353.2361.6

186.4 189.4

1Q14 1Q15Premium and Executive Standard

65.5%

34.5%

539.5551.0

34.4%

65.6%

1.6%

2.1%

2.4%

3.6 3.6 3.9 3.5 3.3

148.6 152.2 153.9

155.7

169.0

1Q14 2Q14 3Q14 4Q14 1Q15

Requisitions Average Requisition Price


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We continue our tendency to enrich RID mix, with themodernization and expansion of the technological park, speciallyMRI and CT equipment, and the increase in the number ofclinical analysis tests per requisition. These factors impacted theupturn in the average value per requisition, which, whencompared to the quarter of 2014, was R$20.4 or 13.7%.

The renegotiation of contracts also contributed to raise theaverage value per requisition.

Hospital MarketRevenue per Line of Service (R$ million)

Average Requisition Price (R$) and Requisition Volume

(million)

53.857.8

14.1 13.2

1Q14 1Q15

Clinical Analysis RID

79.2%

20.8%

67.870.9

18.6%

81.4%7.4%

4.5%

-6.5%

1.0 1.1 1.0 1.0 1.1

68.6 67.7 69.8 65.662.6

1Q14 2Q14 3Q14 4Q14 1Q15

Requisitions Average Requisition Price


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Compared to the same period of last year, there was a decreasein average requisition price, due to cancellations of contracts in2014.

Lab-to-lab

Gross Operational Revenue (R$ million) Performance (R$ million)

This business performance is a reflection of the strategy to increaseour capillarity, by pursuing new customers in our current routes,opening new routes, improving our product mix, and strongerrelationship with laboratories.

The increased revenue per requisition is a result of a richer mix andthe increased number of tests per requisition.

79.1

88.4

1Q14 1Q15

11.7%

5,0725,123

15.6

17.2

1Q14 1Q15

# of Laboratories Average Revenue/Laboratory (in Th R$)

1Q14 x 1Q15

1Q14 2Q14 3Q14 4Q14 1Q15 Var. %

Revenue (in R$ milions) 79.1 81.6 87.9 86.9 88.4 11.7%

# of Laboratories 5,072 5,043 5,024 5,062 5,123 1.0%

Average Revenue/Laboratory (in Th R$) 15.6 16.2 17.5 17.2 17.2 10.6%

# of Requisitions (in Million) 4.5 4.5 4.9 4.7 4.6 2.8%

# of Requisitions/ laboratory 890 886 967 926 906 1.8%

Average Revenue/ requisitions (in R$) 17.5 18.3 18.1 18.6 19.0 8.7%


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Public Sector

Gross Operational Revenue (R$ million) Performance

We finished the quarter with a total of 33 clients, covering a

total of 600 collection points (73 Hospital Units and 527 of theOutpatient Network). We keep the profitability selectivity in the

choice of new customers.

Taxes on Services

In the 1Q15, R$44.6 million were recorded as taxes collected

over the services provided, which stands for 5.9% of the gross

revenue, in relation to the 5.7% ratio of taxes recorded in the

1Q14 (R$41.6 million).

Discounts and Deductions

The reconciliation of net revenue based on gross revenue ispresented below:

46.6

40.2

1Q14 1Q15

-13.7%

596 600

78.2

67.9

1Q14 1Q15

# collecting site Revenue per collecting sites

1Q14 x 1Q15

1Q14 2Q14 3Q14 4Q14 1Q15 Var.%

Revenue (in R$ millions) 46.6 44.1 43.2 40.2 40.2 -13.7%

# of Clients 29 29 28 27 33 13.8%

# of Units Attended - Inpatient 80 64 66 66 73 -8.8%

# of Units Attended - Outpatient 516 525 525 526 527 2.1%

# of Requisitions (in Th.) 1,606 1,557 1,504 1,461 1,535 -4.5%

Revenue per Requisition (R$ Th) 29.0 28.4 28.7 27.5 26.2 -9.6%Revenue per collecting sites 78.2 75.0 73.1 67.9 67.1 -14.2%


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Net Operating Revenue

The net operating revenue reached R$655.7 million in 1Q15 with

a 1.0% decrease when compared to 1Q14.

Cost of Services

The cost of services includes expenses related to the operation

of the PSCs, cost of clinical analysis production and RID.

PSCs costs are divided into fixed – personnel, general and public

services, rents and facility maintenance; and variable - materials

used in the collection and production of clinical tests and RID,

which may vary according to the volume of requisitions

processed. Costs related to the processing of clinical tests

include reagents, personnel and the operating costs of the

central laboratories. RID processing costs consist of expenditures

with equipment maintenance, and the hiring of specialized

medical clinics to issue reports on these tests.

The changes on the line of personnel, materials, services and

utilities and general expenditures are due to the characteristics

of each brand and to the difference between their costs

structure. The main difference is in the attendance, where the

B2C market has collection units and all costs related to this

operation, showing its main costs is personnel and services and

occupancy costs. At the B2B market, its main cost is material

and logistics, as it does not have collection unit, but only the

processing of tests.

1Q14 1Q15

% Gross

Revenue

1Q14

% Gross

Revenue

1Q15

∆ 1Q15 x

1Q14 %

Gross revenue 733.0 750.5 - - 2.4%

Taxes (41.6) (44.6) -5.7% -5.9% 7.1%

Provision for losses due to

disallowance and default (27.3) (41.4) -3.7% -5.5% 51.3%

Discounts (1.9) (8.8) -0.3% -1.2% 355.2%

Deductions (29.3) (50.2) -4.0% -6.7% 71.4%

Net revenue

662.1 655.7 90.3% 87.4% -1.0%


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1) Personnel costs increased because of collective bargaining

agreement (São Paulo - May 2014, Rio de Janeiro – November 2014)

and hiring of new employees.

2) Raw-material costs increased as a percentage of net revenue,

impacted by growth in the lab-to-lab market, mix, and increase inthe prices of some suppliers.

3) The line of services and utilities increased due to higher RIDgrowth, new Patient Service Centers, and commissions of Lab-to-Lab representatives.

4) The General expenses line was stable as percentage of net revenue

compared to 1Q14. This line accounts for spending on

miscellaneous fees, insurances, representation expenses and

freight. The freight was pressured by the growth in Lab-to-lab.

Cash Gross Profit

In the 1Q15, the cash gross profit was R$210.8 million, a 11.5%

decrease in relation to 1Q14, and the cash gross margin of the

period reached 31.9%.

Operating Expenses

Below, the main variations in the cash operating expenses lines as

a portion of the net revenue, in relation to the previous year, aredescribed:

Cost of Services - Quarter

1Q14 4Q14 1Q15 1Q14 4Q14 1Q15∆ 1Q15 x

1Q14 %

∆ 1Q15 x

4Q14 %Personnel 124.7 139.8 135.0 18.8% 21.1% 20.6% 8.3% -3.4%

Materials 116.2 123.5 122.8 17.6% 18.6% 18.7% 5.7% -0.6%

Services and Utilities 174.4 183.2 178.7 26.3% 27.6% 27.3% 2.5% -2.4%

General 8.7 9.4 8.4 1.3% 1.4% 1.3% -3.8% -11.5%Cost of Services Cash 424.0 455.9 444.9 64.0% 68.8% 67.9% 4.9% -2.4%

Depreciation and amortization 28.2 28.5 29.2 4.3% 4.3% 4.5% 3.5% 2.4%

Cost of Services 452.3 484.5 474.1 68.3% 73.1% 72.3% 4.8% -2.1%

In R$ Million Variation %% of Net Revenues


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General and administrative expenses increased because of

collective bargaining agreement and hiring of new employees.

In Profit Sharing Program, a provision of R$12.6 million was

made.

The line other operating income / expenses was impacted by

disinvestments of assets.

Includes Proecho and Lafê, in Compliance with Instruction CVM Nº 527

EBITDA – Quarter*

Operating Expenses - Quarter

1Q14 4Q14 1Q15 1Q14 4Q14 1Q15∆ 1Q15 x

1Q14 %

∆ 1Q15 x

4Q14 %

General and Administrative 115.8 123.7 127.9 17.5% 17.0% 19.5% 10.4% 3.3%

Profit Sharing Program 10.4 5.6 12.6 1.6% 0.8% 1.9% 21.3% 126.2%

Other Operating Revenues/ Expenses (0.7) 22.9 4.9 -0.1% 3.1% 0.7% -826.4% -78.7%

Operating Expenses Cash 125.5 152.2 145.4 19.0% 20.9% 22.2% 15.8% -4.5%

Depreciation and Amortization 18.1 13.9 14.2 2.7% 1.9% 2.2% -21.2% 2.5%Operating Expenses 143.6 166.1 159.6 21.7% 22.8% 24.3% 11.1% -3.9%

In R$ Million % of Net Revenues Variation %

17.0%

10.1%

-1.7%-0.7%

-1.6%

-2.9%

EBITDA 1Q14 Personnnel Materials Services and

Utilities

General SG&A EBITDA 1Q15

0,0%

112.6 115.0128.6

54.468.7

17.0% 16.7% 17.7%

8.2%

10.1%

1T14 2T14 3T14 4T14 1T15Ebitda Margem Ebitda


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EBITDA Demonstration

Depreciation and Amortization

The expenses with depreciation and amortization summed up to

R$43.5 million, or 6.6% of the net revenue in the quarter, against

R$46.3 million (7.0% of the net revenue) in 1Q14.

Net Financial Expenses

The breakdown of net financial expenses is:

The financial result improved due to interests for late payment

of some clients.

Investment Income: Refers to interest gains from cash investments

and mark to market of the securities.

Debentures Expenses: Refers to the interests’ costs in the

debentures issued, including the transaction costs.

Other Financing Expenses: Interest expenses from external

bonds, interest on lease agreements in foreign and/or local

currency, working capital and other loan expenses.

R$ million 1Q14 1Q15D

Net Income (Loss) 28.7 0.3 -98.8%

(+) Income Tax and Social Contribution 13.0 1.3 -89.6%

(+) Net Financial Expenses 24.6 22.6 -8.1%

(+)Depreciation and Amortization 46.3 44.3 -4.3%

EBITDA (R$ MM) 112.6 68.7 -39.0%

Ebitda margin (%) 17.0% 10.1% -6.9 p.p.

R$ (Millions) 1Q14 1Q15

Net Financial Expenses (24.6) (22.7)

Investment Income 16.4 11.2

Debentures (36.9) (34.6)

Other loans and financing expenses (2.4) (3.7)

Other (1.8) 4.5


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Other: The amounts making up this line are: bank expenses;

credit card fees; notary office fees; financial discounts granted

to customers; restatement of contingencies; Tax on Financial

Transactions (IOF); exchange gains/losses on lease agreements;

hedging cost (swap); income tax paid on remittance of interest

abroad; and other expenses not related to interest on loans and

financing.

Income Tax and Social Security Contribution

The total income tax and social contribution presented in the1T15 a balance of R$0.5 million. Of this amount, R$0.4 million

was current and R$0.1 million was a reversion on deferred.

Net Profit

In the 1Q15, the profit was R$0.3 million, as compared to a

profit of R$28.7 million in 1Q14.

Goodwill to be amortized in next years (Thousand R$)

For 2015, the value considered is from April to December

DASA net debt totaled R$810.9 million in 1Q15. About 69.9% of

DASA’s total gross indebtedness is long term and 5.9% are

denominated in foreign currency. The bank loans are the mainly

form the debt in foreign currency. The national currency debts

are largely related to the debentures.

Indebtedness

Year Goodwill

2015 161.5

2016 209.3

2017 206.0

2018 199.3

2019 167.7

2020 9.6

2021 9.6

2022 4.0

Total 967.0


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Includes the balanced sheet items: loans and financing, debentures and financial instruments.As of 4Q12, we introduced the net debt calculation methodology, compatible to the one used

by the fiduciary agent.

After deducting cash from gross debt, the Company’s net debt is

almost entirely denominated in the CDI interbank rate. Due to

the change in the controlling shareholder, the Company now has

access to BNDES’s FINAME credit facility, reducing the debt cost

prefixed in Brazilian Reais.

Breakdown of net indebtedness

R$ Millions 1Q14 1Q15

Short Term (458.6) (512.7)

Domestic Currency (383.2) (413.5)

Foreing Currency (75.4) (99.3)

Long Term (1,046.5) (1,192.4)

Domestic Currency (1,044.4) (1,191.8)

Foreign Currency (2.0) (0.6)

Total ST + LT (1,505.0) (1,705.2)

Cash and Cash equivalent 697.7 894.3

Domestic currency 624.3 791.9

Foreing currency 73.5 102.4

Net Debt (807.3) (810.9)

Average Cost Mar/14 Jun/14 Sep/14 Dec/14 Mar/15% CDI 111.0% 108.8% 108.7% 108.5% 101.7%

CDI + 1.2% 1.2% 1.2% 1.2% 1.2%

Fixed BRL 17.6% 7.8% 7.5% 6.7% 6.4%

Fixed USD 1.9% 1.7% 1.6% 1.5% 1.4%

Covenants Mar/14 Jun/14 Sep/14 Dec/14 Mar/15

Gross Debt 1,505.0 1,289.1 1,321.9 1,228.3 1,705.2

Cash and Cash Equivalents 697.7 497.6 592.2 440.2 894.3

Net Debt 807.3 791.5 729.7 788.0 810.9

Ebitda (LTM) 457.1 461.3 469.1 410.6 366.7

Net Financial Expenses (LTM) 90.2 101.9 94.9 98.6 99.1

1º) Net Debt / Ebitda = 2,0 5.1 4.5 4.9 4.2 3.7


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Cash Flow Analysis (R$ million)

We have detailed under this section the main variations in the

cash flow statement.

The average collection is 83.3 days.

The provision rule is show in the table below:

(1) Index coverage = BDP balance/ expired > 120 days

Average collection period (days)

RECEIVABLES

Provision rule

91 to 120 days 25%

121 to 180 days 50%

181 to 360 days 75%

More than 361 days 100%

Management Cash Flow (R$ Million) 1Q15Accounting EBITDA 68.7

Operacional working capital (28.3)

Other working capital accounts (6.6)

Financial expenses (22.7)

Income tax (0.2) Operational cash flow 10.8

Capex (41.8)

Free Cash Flow (31.0)

R$ million 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15Accounts receivable 448.2 467.2 480.7 452.1 496.6 501.2 532.4 517.6 478.7

Past due 0-90 79.5 80.2 84.0 93.9 114.9 116.0 118.8 95.5 101.9

Past due 91 - 120 14.1 9.6 13.7 13.5 14.6 17.1 19.3 8.6 34.5

Past due (more than) 120 118.8 109.4 91.5 80.2 91.9 79.4 84.2 69.6 92.5

Provisions (107.7) (95.0) (77.3) (67.5) (76.6) (69.3) (72.9) (61.7) (78.2)

Total Rec. 552.9 571.3 592.6 572.2 641.5 644.5 681.8 629.5 629.3

Coverage Index¹ 90.7% 86.9% 84.5% 84.2% 83.3% 87.2% 86.6% 88.6% 84.6%

87 2

85 3

86 2

87 4

83 3

Q 4 2Q 4 3Q 4 4Q 4 Q 5


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The investments in CAPEX in 1T15 totaled R$41.8 million, 38.6%

lower than the same period in 2014. The investments were directed

mostly to: (i) development and deployment of production systems

and services and renovation of technology, (ii) the acquisition,

renovation and expansion of existing units and (iii) purchase of

imaging equipment.

CAPEX (R$ milion) Breakdown CAPEX 1Q15

Investments

ROIC

NOPAT LTM/mean(working capital + intangible assets + fixed assets – value for Exchange of shares of DASA and MD1)34% effective rate of Income Tax

10.5% 10.7% 10.7%

8.4%

7.0%

1Q14

LTM

2Q14

LTM

3Q14

LTM

4Q14

LTM

1Q15

LTM

144.3

207.8

30.2 41.8

2013 2014 1Q14 1Q15

Information

Technology

R$ 9.9 MM

Opening and

Expansion of

PSCs

R$ 15.0 MM

Equipment

R$ 17.0 MM

23.7%

40.5%

35.8%


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Below is summarized the expansion and refurbishing of PSCs, and

new PSCs.

The breakdown of the income statement with and without

discontinued operations is:

PSCs EXPANSION

1Q14 2Q14 3Q14 4Q14 2014 1Q15

Opening of PSCs 3 7 6 11 27 6

Standard 3 7 6 11 27 6

Mega 0 0 0 0 0 0

Refurbishing/expansion of PSCs 35 29 51 51 100 47

Tomography installation 0 1 0 2 3 1

MRI installation 0 4 0 4 8 2

Total equipment 0 5 0 6 11 3

Ongoing Refurbishing 12 16 38 25 25 34

Completed Refurbishing 23 8 13 20 64 10

Other refurbishing 35 24 51 45 89 44

Discontinued Operations

R$ million

1Q15 DASA(without

Proecho andLafÊ)

1Q15 Proechoand Lafê

1Q15Consolidated

Gross Operating Revenues 655.7 23.8 679.6

Cost of Services Rendered (474.1) (18.6) (492.7) Depreciation and amortization (29.2) (0.8) (30.0)

Gross Profit 181.6 5.3 186.9 Operating Expenses (159.6) (2.9) (162.5)

Depreciation and Amortization (14.2) (0.1) (14.3)

Net Financial Expenses (22.7) 0.1 (22.6)

Operating Earnings (0.8) 2.5 1.7 Income Tax and Social Contribution (0.5) (0.8) (1.3)

Net Income (Loss) (1.3) 1.6 0.3

Discontinued operations 1.6 (1.6) -

Net Income (Loss) - Consolidated 0.3 - 0.3 Minoritary shareholders (0.0) - (0.0)


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DASA shares closed 1Q15 at R$8.99, accumulating a decrease of

19.3% in the quarter, versus 1.8% increase of the Ibovespa. Over

this period, DASA shares were transacted on 100% of Bovespa’s

trading sessions, summing up to a financial volume of R$21.2

million (daily traded average of R$0.3 million).

Appointment of a Board Member

On February 2, 2015, the Company's Board approved the appointment

of Mr. Pedro de Godoy Bueno to replace, as member of the Board, Mr.

Performance in stock exchange (DASA ON versus IBOVESPA)

Bovespa information

Highlights of the quarter

Capital market

N o v - 0 4

F e b - 0 5

M a y - 0 5

A u g - 0 5

N o v - 0 5

F e b - 0 6

M a y - 0 6

A u g - 0 6

N o v - 0 6

F e b - 0 7

M a y - 0 7

A u g - 0 7

N o v - 0 7

F e b - 0 8

M a y - 0 8

J u l - 0 8

O c t - 0 8

J a n - 0 9

A p r - 0 9

J u l - 0 9

O c t - 0 9

J a n - 1 0

A p r - 1 0

J u l - 1 0

O c t - 1 0

J a n - 1 1

A p r - 1 1

J u l - 1 1

O c t - 1 1

J a n - 1 2

A p r - 1 2

J u l - 1 2

O c t - 1 2

J a n - 1 3

A p r - 1 3

J u l - 1 3

O c t - 1 3

D e c - 1 3

M a r - 1 4

J u n - 1 4

S e p - 1 4

D e c - 1 4

M a r - 1 5

VOLUME (R$) DASA3 IBOVESPA

Close R$ (03/31/2015) 8.99

1Q15 High (R$ per Share) 12.11

1Q15 Low (R$ per Share) 8.99

% Chg. In 1Q15 -19.3%

Market Cap (R$ MM) 2,803.1

Market Cap (US$ MM) 873.8

Free Float 25.3%

Outstanding Shares 311,803,015

Bovespa - DASA ON


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Dickson Esteves Tangerino, who submitted his letter of resignation on

December 22, 2014, effective as of January 15, 2015.

Pursuant to Paragraph Three of Article 18 of the Company’s Bylaws

and Section 150 of the Brazilian Business Corporation Act, the new

member of the Board of Directors will be replacing Mr. Tangerino

until the earlier of the end of the latter’s term of service or the next

Shareholders’ Meeting.

5th Issuance of Debentures

On February 9, 2015, the Company's Board of Directors approved the

fifth issue, by the Company, in up to two series, of at least 40,000

and at most 50,000 debentures non-convertible into shares, of the

unsecured type, with unit par value of R$10,000.00, totaling at least

R$400,000,000.00 and at most R$500,000,000.00 on the date of issue

(i.e., March 10, 2015) (―Debentures‖) for placement through a public

distribution under limited placing efforts, under the terms of CVM

Instruction 476, dated January 16, 2009, as amended.

On March 10, 2015, the Company issued 40,000 debentures totaling

R$400,000,000.00, in two series, with compensation of 100% of CDI +1.05% spread and issuance of R$249,820,000.00 for the first series,

with a term of three years, and with compensation of 100% of CDI +

1.20% spread, and issuance of R$150,180,000.00 for the second

series, with a term of five years.

All the net proceeds from the Issue will be used to refinance short-

term debts of the Company, including the amortization of principal

and payment of interest on the debentures from the second and third

issues. The outstanding balance—if any—will be used to increase

working capital.

Executive Vice President of Administrative and Finance Election

On March 10, 2015, the Company announced to the market and its

shareholders that Mr. Márcio Ramos Fernandes had submitted a

request for resignation from the position of Executive Vice President

of Administrative and Financial Election.

As a result, Mr. Carlos de Barros Jorge Neto was elected on that date.


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Compliance with conditions for sale – Pro-Echo and Lafê

On April 1, 2015, the Company announced that it had complied with

the condition for the sale of shares representing, directly and

indirectly, 100% of the capital stock of Pro-Echo Cardiodata Serviços

Médicos Ltda. and Lafê Serviços Diagnósticos Ltda. to Newscan

Serviços Médicos Ltda., since the operation was approved by the

Brazilian Anti-trust Authority ("CADE"), and its completion marks

another step in the fulfillment of the Commitment and Performance

Term between the Company and CADE on December 4, 2013.

Appointment of Board Members – 2015

On April 23, 2015, at the Annual and Extraordinary General Meeting,

the Company's shareholders approved, without reservations and by a

majority of votes, the list of candidates presented on March 23, 2015

by the Controlling Shareholders, with the consequent election of the

Management Board Members, for these nominees, namely: RomeoCôrtes Domingues, as President of the Board of Directors; Oscar de

Paula Bernardes Neto, as Vice-President of the Board of Directors;

Marcelo Noll Barboza, as Board member; Henrique Jäger, as Board

member; and Alexandre de Barros, as Board member.

Oscar de Paula Bernardes Neto, Henrique Jäger and Alexandre de

Barros are considered independent board members under the Novo

Mercado Listing Regulation.

Intention to tender offer to – delist “Novo Mercado” – fromCromossomo Participações II S.A.

On April 27, 2015, the Company informed that it has received on the

date the attached communication from Cromossomo Participações II

S.A., its controlling shareholder, regarding the Offerer’s intention to

launch a voluntary tender offer to acquire up to the total ordinary

shares issued by DASA, and held by DASA’s non-controlling

shareholders, to delist the DASA’s shares from the special listing

segment of securities market, known as Novo Mercado, operated by

BM&FBOVESPA S.A. – Bolsa de Valores, Mercadorias e Futuros, withoutthe cancellation of DASA’s registry with the CVM as securities issuer

Highlights of the subsequent quarter


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category ―A‖, in the terms of the CVM’s Ruling No. 480 of December

7th, 2009, as amended.


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22/26

Income statement

R$ million 1Q14 1Q15 %

Gross Operating Revenues 733.0 750.5 2.4%

Deductions (70.9) (94.8) 33.7%

Sales Taxes (41.6) (44.6) 7.1%

Discounts (29.3) (50.2) 71.4%

Net Operating Revenues 662.1 655.7 -1.0%

Cost of Services Rendered (452.3) (474.1) 4.8%

Personnel (124.7) (135.0) 8.3%

Materials (116.2) (122.8) 5.7%

Services and Utilities (174.4) (178.7) 2.5%

General (8.7) (8.4) -3.8%

Depreciation and amortization (28.2) (29.2) 3.5%

Gross Profit 209.9 181.6 -13.5%

Operating Expenses (143.6) (159.6) 11.1%

General and Administrative (115.8) (127.9) 10.4%

Profit Sharing Program (10.4) (12.6) 21.3%

Other Operating Revenues/ Expenses 0.7 (4.9) -826.4%

Depreciation and Amortization (18.1) (14.2) -21.2%

Net Financial Expenses (24.6) (22.7) -7.7%

Operating Earnings 41.6 (0.8) NA

Income Tax and Social Contribution (13.0) (0.5) -96.0%

Net Income (Loss) 28.7 (1.3) NA

Operações descontinuadas - 1.6

Lucro líquido do exercício (consolidado) 28.7 0.3 -98.8%

Minoritary shareholders (0.1) (0.0)


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Consolidated balance sheet (R$ thousands)

Balance Sheet - R$ thousands 1Q14 4Q14 1Q15 1Q14 4Q14 1Q15

Total Assets 4,790,399 4,609,536 5,055,520 Total equity and liabilities 4,790,399 4,609,536 5,055,520

Current 1,607,639 1,430,187 1,785,246 Current liabilities 802,106 812,060 866,251

Cash and cash equivalents 625,251 274,986 596,455 Current liabilities 81,926 116,275 77,839

Marketable securities 72,483 165,239 197,617 Accounts payable to suppliers 101,605 114,711 159,058

Accounts receivable 636,735 626,721 626,289 Loans and financing 24,313 16,338 23,063

Inventories 55,870 71,942 62,698 Tax liabilities 117,965 131,774 129,846

Recoverable taxes 176,976 178,677 183,754 Social security and labor liabilities 3,441 956 741

Prepaid expenses 5,290 1,015 6,975 Social security and labor liabilities 1,720 3,783 1,820

Judicial deposits - - - Installment payment of taxes 356,802 318,932 353,687

Other current assets 35,034 111,608 29,530 Account s payable fr om acquis ition of s ubs idiaries 31,259 19,622 19,622

Assets held for sale - 77,347 81,927 Debentures 170 - -

Noncurrent assets 3,182,760 3,179,348 3,270,274 Dividends and interest on shareholders’ equity 82,905 76,306 87,162

Long-term receivables 145,934 145,220 244,655 Liabilities held for sale 13,362 13,413

Marketable securities at fair value 36,491 25,555 118,622 Noncurrent liabilities 1,250,289 1,025,310 1,417,067

Deferred tax assets 59,322 53,028 55,047 Long-Term Liabilities 1,250,289 1,025,310 1,417,067

Other credits 7,184 2,942 3,196 Loans and financing 9,104 51,289 48,770

Prepaid expenses 662 762 2,513 Installment payment of taxes 25,079 3,559 3,516

Judicial deposits 42,275 62,934 65,278 Deferred taxes 83,797 134,849 136,958

Instrumentos financeiros derivativos - - - Provision for contingencies 48,447 59,876 59,538

Investments 817 803 528 Account s payable fr om acquis ition of s ubs idiaries 42,992 30,265 22,775

Property and Equipment 682,231 683,228 688,371 Debentures 1,037,334 743,325 1,143,657

Intangible assets 2,353,778 2,350,096 2,336,720 Related parties - - -

Financial instruments derivatives 30 - -

Others 3,506 2,148 1,853

Total equity 2,738,004 2,772,166 2,772,202

Capital 2,234,135 2,234,135 2,234,135

Special reserve for goodwill on merger 65,427 65,366 65,366

Profit reserves 423,566 486,592 486,179 Equity evaluation adjustment 786 315 159

Retained Earnings 28,595 - 866

Granted options 3,433 1,769 1,460

Treasury stock (18,617) (16,905) (16,905)

Non-controlling interests 679 894 943


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Statement of cash flows (R$ thousands)

AccountQuartely

10/01/14 to 03/31/14

Quartely

10/01/15 to 03/31/15

Net cash from operating activities 124,817 54,094

Cash from operations 129,521 106,610

Net income for the period 28,682 345

Depreciation and amortization 46,302 44,322

Restatement of contingencies 10,381 5,315

Deferred tax 267 (1,192)

Restatement of interest and exchange variation on loans 35,861 54,443

Res idual Poperty and equipment and intangible assets write off (277) 6,654

Stock option plan 516 (309)

Provision for disallowance and default 7,866 17,420

Restatement of interest and exchange variation on finnancial investments (77) (20,388)

Changes in assets and liabilities 2,561 (52,282)

Increase in accounts receivable and other receivables (77,210) (16,535)

Increase in inventories 3,513 9,246

Increase in other current assets (13,288) (10,757)

Decrease (increase) in other non-current assets 54,728 3,087

Decrease in trade accounts payable 16,447 (38,415)

Increase in accounts payable and provisions 18,371 1,092

Other (7,265) (234)

Income tax and social contribution paid (7,265) (234)

Net cash from investing activities (29,563) (154,606)

Additions to property and equipment (24,804) (41,003)

Additions to intangible assets (5,381) (1,263)

Proceeds from sale of property and equipment 48 -

Financial Investments - (130,126)

Redemption of marketable securities for trading 574 17,786

Net cash from financing activities (5,884) 421,981

Loans taken out (4,715) 436,951

Payment of loans - (12,392)

Dividends and IOC paid - -

Capital payment (1,169) (2,578)

Exchance rate variation on cash and equivalents - -

Increase (decrease) in cash and cash equivalents 89,370 321,469

Increase (decrease) in cash and cash equivalents 535,881 274,986

At beginning of period 625,251 596,455


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Statement of added value (R$ thousands)

Quartely

01/01/14 to 03/31/14

Quartely

01/01/15 to 03/31/15

(=) 1. Revenue 733,785 756,258

Sales of goods, products and services 733,041 780,564

Other revenue 770 2,063

Reversal of allowance for doubtful accounts (26) (26,369)

(=) 2. Inputs acquired from third parties (356,217) (383,980)

Cost of products, goods and services sold (250,287) (272,892)

Materials, energy, third-party services and other (105,930) (111,088)

3. = (1-2) Gross value added 377,568 372,278

Retention (46,302) (44,322)

4. Depreciation, amortization and depletion (46,302) (44,322)

5. = (3-4) Net value added produced 331,266 327,956

(=) 6. Transferred value added received 19,591 20,402

Financial income 19,591 20,402

7. = (5+6) Total value added to be distributed 350,857 348,358

(=) 8. Distribution of value added 350,857 348,358

Personnel 158,952 185,708

Taxes, fees and contributions 85,479 84,487

Debt remuneration 77,744 77,818

IOC and dividends 28,682 345

Retained profits 28,595 296 Non-controlling interest 87 49

Account


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Statement of changes in shareholder´s equity (R$ thousands)

01/01/2015 to 03/31/2015

Opening balances 2234135 50230 0 0 315 2771272 894 2772166

Shareholders capital transaction 2234135 50230 0 0 315 2771272 894 2772166

Equity capital transactions 0 -308 0 0 0 -308 0 -308

Capital increases 0 0 0 0 0 0 0 0

Recognized options granted 0 -308 0 0 0 -308 0 -308

Dividends 0 0 0 0 0 0 0 0

Total comprehensive income 0 0 296 296 0 296 49 345

Net income for the period 0 0 296 296 0 296 49 345

Internal Changes in Equity 0 0 0 0 -156 0 0 0

Depreciation of deemed cost 0 0 0 0 -156 0 0 0

Closing balances 2234135 49922 296 296 159 2771260 943 2772203

01/01/2014 to 03/31/2014

Opening balances 2,234,135 50,230 486,592 0 315 2,771,272 894 2,772,166

Shareholders capi tal transaction 2,234,135 50,230 486,592 0 315 2,771,272 894 2,772,166

Equity capital transactions 0 -308 0 0 0 -308 0 -308

Recognized options granted 0 -308 0 0 0 -308 0 -308

Dividends 0 0 0 0 0 0 0 0

Total comprehensive income 0 0 0 296 0 296 49 345

Net income for the period 0 0 0 296 0 296 49 345

Internal Changes in Equity 0 0 156 0 -156 0 0 0

Depreciation of deemed cost 0 0 156 0 -156 0 0 0

Closing balances 2,234,135 49,922 486,748 296 159 2,771,260 943 2,772,203

Description Paid-In

Capital

Capital Reserve

Granted options and

treasury shares

Profit

Reserves

Retained

earnings

accumulated

Other

comprehensiv

e

Equity Non-controlling

interest

Consolidated

equity

Equity Non-controlling

interest

Consolidated

equity

comprehensiv

eDescription

Paid-In

Capital

Capital Reserve

Granted options and

treasury shares

Profit

Reserves

earnings

accumulated

Earnings Release 1T15

Documents

Transcript of Earnings Release 1T15