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nd

3 QUARTER 2014
EARNINGS RESULTS

DASA announces growth of 11.7% in 3Q14
Gross Revenue of R$800.7 million in 3Q14
EBITDA Margin of 17.7% in 3Q14

DASA ON
Bovespa: DASA3
Last Quoted price:
R$9.83
Average daily trade volume
R$0.4 Million in 3Q14
Market value
R$3.1 billion
US$1.2 billion
Free Float: 25.3%

TELECONFERENCES
Portuguese
Date: 11/11/2014| Hour: 10h00 a.m. (BRST)
Phone: 11 2188-0155 | Password: DASA
English
Date: 11/11/2014| Hour: 12h00 p.m. (BRST)
Phone: 1(412) 317-6776| Password: DASA
Dickson Esteves Tangerino
CEO
Octávio Fernandes
VP of Operations
Antônio Carlos Gaeta
VP of Business
Márcio Fernandes
VP Administrative and Finance
Paulo Bokel
Investor Relations and Finance Officer
ir@dasa.com.br
Phone.: (05511) 4197-5410
Fac Smile: (05511) 4197-5516
www.dasa3.com.br

3nd QUARTER RESULTS

Financial performance highlights
Barueri, November 10th, 2014:
Diagnósticos da América S.A. – DASA (BOVESPA: DASA3) has announced today the results related to the third quarter of 2014.
The company’s operational and financial information are calculated on a consolidated basis and in million of Reais, based on
accounting practices extracted from the Brazilian Corporate Law, except where stated otherwise. The information herein
refers to the Company’s performance in the third quarter of the year 2014, compared to the third quarter of the year 2013,
except where stated otherwise.

In this quarter, DASA reached gross revenue of R$800.7 million with a 11.7% growth in
comparison to 3Q13 revenue of R$716.7 million.
We had 66 working days in 3Q14, the same of 3Q13. On the other hand, in July we were
impacted by the FIFA World Cup in Brazil, with 2 matches of the Brazilian team. If these match
days are not taking into account because they have been regional holidays or part-time days,
business days would be reduced by 3.0% compared to 3Q13.
Revenue per business day grew by 11.7% compared to 3Q13, from R$10.9 million to R$12.1
million, considering 66 business days in the third quarter. If these two match days of the
Brazilian team were not taken into account, revenue per business day would be 15.2% higher,
reaching R$12.5 million.
The outpatient market reached a gross revenue of R$596.6 million in 3Q14 with a 14.5% growth
when compared to 3Q13, representing 74.5% of DASA’s total gross revenue.
The hospital Market gross revenue reached R$73.1 million in the 3Q14, with 5.7% increase when
compared to 3Q13, equivalent to 9.1% of DASA’s total revenue.
The lab-to-lab market ended the quarter with 5,024 customers serviced in the Country. The
gross revenue of this market expanded by 14.9% in the 3Q14, reaching R$87.9 million, which
represents 11.0% of DASA’s total revenue.
The public market reached gross revenue of R$43.2 million in 3Q14, a decrease of 14.0%,
which represents 5.4% of the total revenue of DASA.

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3nd QUARTER RESULTS

Revenue per business (R$ million) – Markets
11.7%

7.0%
10.7%

-14.0%

716.7
50.2

14.9%

76.5

5.4%

87.9

11.0%

73.1

9.1%

5.7%

69.2

9.7%

800.7
43.2

14.5%

72.7%

596.6

520.9

3Q13

74.5%

3Q14

Outpatient

Inpatient

Lab to Lab

Public Sector

Revenue per Line of Service (R$ million) – Clinical Analysis X RID
11.7%

800.7

13.0%

272.1

716.7

33.6%

34.0%

240.9

11.1%
66.4%

475.9

3Q13

RID

528.6

66.0%

3Q14

Clinical Analysis

The revenue of the same units (PSC) grew by 14.8% in the 3Q14, when compared to 3Q13
We ended the quarter with 521 units, of which 64 are hospital units.
In 3Q14, EBITDA amounted R$128.6 million, compared to R$120.7 million in 3Q13,
representing 17.7% of net revenue.

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3nd QUARTER RESULTS

CAPEX investments in 3Q14 totaled R$51.0 million. These investments were directed to: (i)
development and deployment of production systems and services and renovation of technology,
(ii) the acquisition, renovation and expansion of existing units and (iii) purchase of imaging
equipment.
Highlights
Total Gross Revenue (R$ MM)

3Q13

3Q14

∆%

716.7

800.7

11.7%

520.9

596.6

14.5%

Hospitals Revenue (R$ MM)

69.2

73.1

5.7%

Lab-to-lab Gross Revenue

76.5

87.9

14.9%

Public Gross Revenue

50.2

43.2

-14.0%

66

66

0.0%

Outpatient Revenue (R$ MM)

Working days
Gross Revenue (R$ MM) / Working day

10.9

12.1

11.7%

N° Total units

521

521

0.0%

N° PSCs

455

457

0.4%

66

64

-3.0%

EBITDA (R$ MM)

120.7

128.6

6.5%

Ebitda margin (%)

18.7%

17.7%

-0.9 p.p

Net income (R$ MM)

36.0

43.6

21.2%

CAPEX (R$ MM)

31.4

51.0

62.7%

Same Units Sales - Outpatient (%)

7.6%

14.8%

7.2 p.p

N° Hospital units

Operational highlights

Implementation of a hospital lab in the new Hospital das Américas, which will be one of Rio de
Janeiro’s most important hospitals and was inaugurated in October
Global launch of Roche´s new conveyor belt at the Central Lab in the Federal District, with
expansion capacity and possibility of decentralization
Delboni International Symposium reached 1000 participants
30 doctors from the Dasa group gave lectures during the Brazilian Congress of Radiology in Rio
de Janeiro

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3nd QUARTER RESULTS

Financial performance

 Outpatient Market
Revenue per Line of Service (R$ million)

Revenue per brand (R$ million)
14.5%

596.6
520.9
41.4%

215.8

58.6%

305.1

14.5%

520.9

15.4%

249.0

41.7%

13.9%

347.6

58.3%

3Q13

3Q14
Clinical Analysis

596.6

RID

33.6%

174.9

66.4%

345.9

17.4%

13.1%

3Q13
Premium and Executive

205.3

34.4%

391.3

65.6%

3Q14
Standard

The company is pursuing the strategy of refurbishing its units to increase
the service capacity, services offered and comfort in the provision of
these services, in addition to expand our capillarity.
Imaging revenue grew above the increase in clinical analysis
revenue, due to the maturation of investments in RID made in the
last 2 years.
The standard segment continued to expand significantly, up by
17.4%, and in premium and executive segment, the growth was
13.1%.

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3nd QUARTER RESULTS

Average Requisition Price (R$) and Requisition Volume (million)
146.3

148.6

152.2

153.9

138.9

134.0

133.7

3.5

3.8

3.8

3.5

3.6

3.6

3.9

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

Requisitions

Average Requisition Price

We continue our tendency to enrich RID mix, with the
modernization and expansion of the technological park, specially
MRI and CT equipment, and the increase in the number of
clinical analysis tests per requisition. These factors impacted the
upturn in the average value per requisition, which, when
compared to the third quarter of 2013, was R$15.0 or 10.8%.
The renegotiation of contracts also contributed to raise the
average value per requisition, despite stronger growth in the
standard market, which has a lower average requisition price.

Hospital Market
Revenue per Line of Service (R$ million)
69.2

5.7%

24.2%

16.8

-5.3%

75.8%

73.1

15.9

21.7%

52.4

57.2

78.3%

3Q13

3Q14

9.2%

Clinical Analysis

RID

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3nd QUARTER RESULTS

Average Requisition Price (R$) and Requisition Volume
(million)
56.3

64.7

68.9

68.5

68.6

67.7

69.8

1.1

1.1

1.0

1.0

1.0

1.1

1.0

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

Requisitions

Average Requisition Price

Compared to the same period of last year, there was an increase
in average requisition price, due to unprofitable agreements
being terminated, as well as more profitable contracts being
entered into over the year, which affected the mix of AC and
RID.

Lab-to-lab
Gross Operational Revenue (R$ million)

Performance (R$ million)
17.5

14.9%

15.2

87.9
76.5

5,033

3Q13

3Q13

3Q14

# of Laboratories

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5,024

3Q14
Average Revenue/Laboratory (in Th R$)

3nd QUARTER RESULTS

3Q13 x 3Q14

3Q13
Revenue (in R$ milions)

4Q13

1Q14

2Q14

3Q14

Var. %

76.5

73.4

79.1

81.6

87.9

14.9%

5,033

5,041

5,072

5,043

5,024

-0.2%

15.2

14.6

15.6

16.2

17.5

15.1%

# of Requisitions (in Million)

4.5

4.2

4.5

4.5

4.9

8.4%

# of Requisitions/ laboratory

891

839

890

886

967

8.6%

17.1

17.4

17.5

18.3

18.1

6.0%

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

Average Revenue/ requisitions (in R$)

This business performance is a reflection of the strategy to increase
our capillarity, by pursuing new customers in our current routes,
opening new routes, improving our product mix, and stronger
relationship with laboratories.
The increased revenue per requisition is a result of a richer mix and
the increased number of tests per requisition.

Public Sector
Gross Operational Revenue (R$ million)

Performance
84.9

-14.0%

73.1

50.2
43.2

3Q13

3Q14

591

591

3Q13

3Q14

# collecting site

Revenue per collecting sites

We finished the quarter with a total of 28 clients, covering a
total of 591 collection points (66 Hospital Units and 525 of the
Outpatient Network). We keep the profitability selectivity in the
choice of new customers.

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3nd QUARTER RESULTS

3Q13 x 3Q14

3Q13
Revenue (in R$ millions)
# of Clients
# of Units Attended - Inpatient

4Q13

1Q14

2Q14

3Q14

Var.%

50.2

40.8

46.6

44.1

43.2

-14.0%

29

28

29

29

28

-3.4%
-18.5%

81

76

80

64

66

510

514

516

525

525

2.9%

1,525

1,543

1,606

1,557

1,504

-1.4%

Revenue per Requisition (R$ Th)

32.9

26.4

29.0

28.4

28.7

-12.8%

Revenue per collecting sites

84.9

69.1

78.2

75.0

73.1

-14.0%

591

590

596

589

591

0.0%

# of Units Attended - Outpatient
# of Requisitions (in Th.)

# collecting site

Payers
An increase in the participation of the Lab-to-lab and Medical
Cooperatives can be noticed when analyzing the breakdown of
gross income by payer in 3Q14 when compared to 3Q13.
Gross Revenue per payer (3Q13)

Gross Revenue per payer (3Q14)

Receita bruta por pagador (3T13)Receita bruta por pagador (3T14)
Self-Insured
Corporations
12.7%

Insurance
Health Plans
18.8%

HMO
18.1%

Others
1.5%

Insurance Health
Plans
18.2%

Self-Insured
Corporations
10.7%

HMO
16.6%

Others
2.4%

Hospitals
9.7%

Individuals
8.8%
Lab-to-lab
10.7%

Medical
Cooperatives
12.8%
Public Sector
7.0%

Hospitals
9.1%
Individuals
8.5%
Lab-to-lab
11.0%

Medical
Cooperatives
18.1%
Public Sector
5.4%

Others: Includes Clinical Research, Occupational Medicine and OGM

Taxes on Services
In the 3Q14, R$50.7 million were recorded as taxes collected
over the services provided, which stands for 6.3% of the gross
revenue, in relation to the 5.5% ratio of taxes recorded in the
3Q13 (R$39.2 million).
Discounts and Deductions
The reconciliation of net revenue based on gross revenue is
presented below:

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3nd QUARTER RESULTS

3Q13
Gross revenue

716.7

3Q14
800.7

% Gross

% Gross

Revenue
3Q13

Revenue
3Q14

∆ 3Q14 x
3Q13 %

-

-

11.7%

(39.2)

(50.7)

-5.5%

-6.3%

29.3%

(30.2)

(20.6)

-4.2%

-2.6%

-31.6%

(1.2)

(1.6)

-0.2%

-0.2%

35.2%

Deductions

(31.4)

(22.2)

-4.4%

-2.8%

-29.1%

Net revenue

646.2

727.8

90.2%

90.9%

12.6%

Taxes
Provision for and losses due to
disallowance and default
Discounts

Net Operating Revenue
The net operating revenue reached R$727.8 million in 3Q14 with
a 12.6% growth when compared to 3Q13.
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.

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3nd QUARTER RESULTS

Cost of Services

In R$ Million

Personnel
Materials
Services and Utilities
General
Cost of Services Cash
Depreciation and amortization
Cost of Services

% of Net Revenues

3Q13

2Q14

3Q14

3Q13

2Q14

3Q14

125.8
116.2
165.2
6.6
413.8
22.9
436.7

138.1
127.4
171.9
8.2
445.6
26.1
471.7

138.5
127.1
186.5
9.0
461.0
26.7
487.7

19.5%
18.0%
25.6%
1.0%
64.0%
3.5%
67.6%

20.1%
18.5%
25.0%
1.2%
64.8%
3.8%
68.6%

19.0%
17.5%
25.6%
1.2%
63.3%
3.7%
67.0%

Variation %
∆ 3Q14 x ∆ 3Q14 x
3Q13 % 2Q14 %
10.1%
0.3%
9.4%
-0.2%
12.9%
8.5%
36.5%
8.8%
11.4%
3.5%
16.4%
2.2%
11.7%
3.4%

1) Personnel costs increased because of collective bargaining
agreement (Rio de Janeiro – November 2013, São Paulo –May 2014),
and hiring of new employees.
2) Raw-material costs were diluted as a percentage of net revenue,
impacted by growth in the lab-to-lab market, reduction in the
public market, mix, and increase in the prices of some suppliers,
as well as higher RID growth.
3) The line of services and utilities remained stable as a percentage
of net revenue in relation to 3Q13, despite the period inflation and
higher RID growth. This account registers the occupancy cost of
the service units, doctor fee from imaging exams (variable costs),
data links, expenses from representatives from lab-to-lab (variable
costs).
4) The General expenses line increased 0.2 p.p. on net revenue
compared to 3Q13. 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 3Q14, the cash gross profit was R$266.8 million, a 14.8%
increase in relation to 3Q13, and the cash gross margin of the
period reached 36.7%, compared to 36.0% in 3Q13.

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3nd QUARTER RESULTS

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, are
described:
Operating Expenses

In R$ Million

General and Administrative
Profit Sharing Program
Other Operating Revenues/ Expenses
Operating Expenses Cash
Depreciation and Amortization
Operating Expenses

% of Net Revenues

3Q13

2Q14

3Q14

3Q13

2Q14

112.0
7.8
(8.2)
111.7
13.4
125.0

117.1
9.9
(0.2)
126.8
13.5
140.3

128.2 17.3%
9.8 1.2%
0.1 -1.3%
138.2 17.3%
14.6 2.1%
152.8 19.4%

17.0%
1.4%
0.0%
18.4%
2.0%
20.4%

Variation %

∆ 3Q14 ∆ 3Q14 x
x 3Q13 2Q14 %
17.6% 14.5%
9.5%
1.4%
25.6%
-0.5%
0.0% -101.7% -166.4%
19.0% 23.8%
9.0%
2.0%
9.2%
8.2%
21.0% 22.2%
8.9%
3Q14

General and administrative expenses increased because of
collective bargaining agreement and hiring of new employees.
In Profit Sharing Program, a provision of R$9.8 million was made.
In the third quarter of last year, other operating income /
expenses was impacted by a gain of R$ 7 million related to gains
with renegotiations with equipment supplier.
EBITDA

18.7%

0.4%

EBITDA 3Q13

Personnnel

0.5%

Materials

12/28

-0.1%

-0.2%
-1.7%

Services and
Utilities

General

SG&A

17.7%

EBITDA 3Q14

3nd QUARTER RESULTS

20%
18%
16%
14%
12%
10%
08%
06%
04%
02%
00%

18.7%

18.0%

120.7

17.0%

113.0

16.7%

115.0

112.6

17.7%

160,00

128.6

140,00

120,00
100,00
80,00

60,00
40,00
3Q13

4Q13

1Q14
Ebitda

2Q14
Ebitda Margin

3Q14

EBITDA Demonstration

R$ million

D%

3Q13

3Q14

Net Income (Loss)
(+) Income Tax and Social Contribution
(+) Net Financial Expenses
(+)Depreciation and Amortization
EBITDA (R$ MM)

36.0
21.1
27.3
36.3
120.7

43.6
22.0
21.7
41.3
128.6

21.2%
4.2%
-20.6%
13.8%
6.5%

Ebitda margin (%)

18.7%

17.7%

-1 p.p.

Depreciation and Amortization
The expenses with depreciation and amortization summed up to
R$41.3 million, or 5.7% of the net revenue in the quarter, against
R$36.3 million (5.6% of the net revenue) in 3Q13.
Net Financial Expenses
The breakdown of net financial expenses is:
R$ (Millions)
Net Financial Expenses

Investment Income
Debentures/Promissory Notes Expenses

3Q13
(27.3)

5.2

3Q14
(21.7)

13.6

(23.6)

(34.3)

Other loans and financing expenses

(8.3)

(3.8)

Other

(0.7)

2.9

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3nd QUARTER RESULTS

The financial result improvement was due to the higher balance
of financial investments, in turn due to the company’s strong
cash generation in 2014, debt cost management and reduced
exchange rate exposure.
In the 3Q13, a financial gain of R$2.7 million was reported with
regard to adhering to the Installment Payment Program of the
State of São Paulo ("PEP") referring to the ICMS debts, and also a
negative impact by the repurchase of the remaining bonds issued
by DASA Finance, amounting to R$5.5 million. Both events were
non-recurring.
Investment Income: Refers to interest gains from cash investments
and mark to market of the securities.
Debentures / Promissory Notes Expenses: Refers to the costs of
interests in promissory notes and 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.
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 the
3Q14 a balance of R$22.0 million. Of this amount, R$8.2 million
was current and R$13.8 million was deferred.
Net Profit
In the 3Q14, the net profit was R$43.6 million, as compared to a
profit of R$36.0 million in 3Q13, a 21.2% increase.

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3nd QUARTER RESULTS

Goodwill to be amortized in next years (Thousand R$)
Year
2014
2015
2016
2017
2018
2019
2020
2021
2022
Total

Goodwill
65,474
211,406
211,352
211,148
208,910
177,306
19,289
19,289
8,037
1,132,212

For 2014, the value considered is from October to December

Cash tax
We shall continue to amortize the goodwill on previous
acquisitions and, as from November 2011, the goodwill of the
incorporation of MD1. The value of Cash tax was R$6.6 million in
3Q14.

3Q14

52.8%

-0.5%
34.0%

Income Tax Rate

33.5%
permanents
adjustements in
tax books

Income Taxes
(Financial
Statements)

Tax Loss/Other

-73.8%

12.5%

Goodwill
Compensation

Withholding tax
(current)/
Income taxes
cash*

* Withholding tax (current): Originally from financial income and withholding of gross revenue

15/28

3nd QUARTER RESULTS

Indebtedness

DASA net debt totaled R$729.7 million in 3Q14. About 64.9% of
DASA’s total gross indebtedness is long term and 6.0% are
denominated in foreign currency. The bank loans are the mainly
form the debt in foreign currency. The national currency debts
are largely related to the debentures.
Breakdown of net indebtedness
R$ Millions
Short Term
Domestic Currency
Foreing Currency
Long Term
Domestic Currency
Foreign Currency

3Q13
(429.8)

3Q14
(464.2)

(352.7)

(386.1)

(77.2)

(78.0)

(679.5)

(857.7)

(674.6)

(856.7)

(4.8)

(1.0)

(1,109.3)

(1,321.9)

Cash and Cash equivalents

252.4

592.2

Domestic currency

201.5

511.2

51.0

80.9

(856.9)

(729.7)

Total ST + LT

Foreing currency

Net Debt

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.

Covenants

Sep/13 Dec/13 Mar/14 Jun/14 Sep/14

1º) Net Debt / Ebitda <= 2,5
2º) Ebitda / Net Financial Expenses >= 2,0

Average Cost
% CDI
CDI +
Fixed BRL
Fixed USD

2.1
4.6

1.8
5.1

1.7
4.5

1.6
4.9

Sep/13 Dec/13 Mar/14 Jun/14 Sep/14
111.0%
1.2%
16.1%
2.2%

16/28

2.0
5.1
111.0%
1.2%
17.6%
2.1%

111.0%
1.2%
17.6%
1.9%

108.8%
1.2%
7.8%
1.7%

108.7%
1.2%
7.5%
1.6%

3nd QUARTER RESULTS

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.
Cash Flow Analysis (R$ million)
We have detailed under this section the main variations in the
cash flow statement.

Management Cash Flow (R$ Million)
Accounting EBITDA
Operacional working capital
Other working capital accounts
Financial expenses
Income tax
Operational cash flow
Capex
Free Cash Flow

3Q14
128.6
(28.2)
41.0
(21.7)
(6.6)
113.0
(51.0)
62.0

RECEIVABLES
The average collection is 86.2 days.
The provision rule is show in the table below:

Provision rule
91 to 120 days
121 to 180 days
181 to 360 days
More than 361 days

R$ million

Accounts receivable
Past due 0-90
Past due 91 - 120
Past due (more than) 120
Provisions
Total Rec.
Coverage Index¹

25%
50%
75%
100%

3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
432.4
87.2
8.3
117.6
(105.5)
540.0
89.7%

376.8
448.2
94.8
79.5
16.1
14.1
119.9
118.8
(109.2) (107.7)
498.5 552.9
91.1% 90.7%

17/28

467.2
480.7
452.1
496.6
501.2
532.4
80.2
84.0
93.9
114.9
116.0
118.8
9.6
13.7
13.5
14.6
17.1
19.3
109.4
91.5
80.2
91.9
79.4
84.2
(95.0)
(77.3)
(67.5)
(76.6)
(69.3) (72.9)
571.3
592.6
572.2
641.5
644.5 681.8
86.9%
84.5%
84.2%
83.3%
87.2%
86.6%

3nd QUARTER RESULTS

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

Average collection period (days)
84.4

3Q13

83.8

87.2

85.3

86.2

4Q13

1Q14

2Q14

3Q14

ROIC

10.4%

10.5%

4Q13
LTM

1Q14
LTM

10.7%

10.7%

2Q14
LTM

3Q14
LTM

8.3%

3Q13
LTM

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

Investments

The investments in CAPEX in 3Q14 totaled R$51.0 million, 62.7%
lower than the same period in 2013. The investments were directed
mostly to: (i) development and deployment of production systems
and services and renovation of technology, (ii) the acquisition,

18/28

3nd QUARTER RESULTS

renovation and expansion of existing units and (iii) purchase of
imaging equipment.
CAPEX (R$ milion)

Breakdown CAPEX YTD

234.0
Equipment
R$ 45.2 MM
39.0%

144.3

41.3

2012

2013

1Q13

Opening and
Expansion of
PSCs
R$ 44.7 MM
38.6%

51.0

30.2

29.1

34.7

31.4

1Q14

2Q13

2Q14

3Q13

Other
R$ 0.1 MM
0.1%

Information
Technology
R$ 25.9 MM
22.3%

3Q14

PSCs EXPANSION
Below is summarized the expansion and refurbishing of PSCs, and
new PSCs.
2012

2013

1Q14

2Q14

3Q14

Opening of PSCs

22

11

3

7

6

Standard

21

10

3

7

6

1

1

0

0

0

30

52

35

29

51

7

2

0

1

0

MRI installation

10

7

0

4

0

Total equipment

17

9

0

5

0

2

21

12

16

38

Completed Refurbishing

11

22

23

8

13

Other refurbishing

13

43

35

24

51

Mega
Refurbishing/expansion of PSCs
Tomography installation

Ongoing Refurbishing

Capital market
DASA shares closed 3Q14 at R$12.04, accumulating a decrease of
14.2 % in
quarter,
Novembro
dethe
2004
= 100 versus 1.1% increase of the Ibovespa. Over
this period, DASA shares were transacted on 100% of Bovespa’s

19/28

3nd QUARTER RESULTS

trading sessions, summing up to a financial volume of R$28.8
million (daily traded average of R$0.4 million).

Nov-04
Feb-05
May-05
Aug-05
Nov-05
Feb-06
May-06
Aug-06
Nov-06
Feb-07
May-07
Aug-07
Nov-07
Feb-08
May-08
Aug-08
Nov-08
Feb-09
May-09
Aug-09
Nov-09
Feb-10
May-10
Aug-10
Nov-10
Feb-11
May-11
Aug-11
Nov-11
Feb-12
May-12
Aug-12
Nov-12
Feb-13
May-13
Aug-13
Nov-13
Feb-14
May-14
Aug-14

Performance in stock exchange (DASA ON versus IBOVESPA)

VOLUME (R$)

DASA3

IBOVESPA

Bovespa information
Novembro de 2004 = 100
Bovespa - DASA ON
Close R$ (09/30/2014)
3Q14High (R$ per Share)
3Q14 Low (R$ per Share)
% Chg. In 3Q14
Market Cap (R$ MM)
Market Cap (US$ MM)
Free Float
Outstanding Shares

12.04
15.12
11.95
-14.2%
3,754.1
1,531.7
25.3%
311,803,015

Highlights of the quarter
Merger of companies
On July 1, 2014, the shareholders attending the Extraordinary
Shareholders’ Meeting approved, by unanimous vote and without
any restrictions, the merger into the Company of the following
companies: (a) CDPI – Clínica de Diagnóstico por Imagem Ltda.;
(b) Clínica
de
Ressonância
e
Multi-Imagem Ltda.;
(c) Laboratórios Médicos Dr. Sergio Franco Ltda.; (d) Imagem e
Diagnósticos Ltda.; (e) Multimagem PET Ltda.; and (f) Clínica
de Ressonância e Multi-Imagem Caxias Ltda., with the
consequent extinguishment of the Merged Companies, pursuant

20/28

3nd QUARTER RESULTS

to the Protocol. The Company will succeed the Merged
Companies to all their assets, rights and obligations, pursuant to
Article 227 of Law 6404/76 and Article 1116 of the Civil Code.
Since the Company owns, directly and indirectly, all of the
capital stock of the Merged Companies, (i) there will not be
increase in the Company’s capital or issue of new shares as a
result of the Merger, (ii) the Company is released from the
obligation to prepare appraisal report at market price, in
compliance with Article 264 of Law 6,404/76, as the Brazilian
Securities and Exchange Commission has already exempted the
Company from such requirement, and (iii) there will be no
granting of withdrawal rights as a result of the Merger.
Judgment CADE – Cromossomo Participações II S/A
in a judgment session held on July 16, 2014, the Brazilian
antitrust authority (the Conselho Administrativo de Defesa
Econômica, or “CADE”) approved the acquisition by Cromossomo
Participações II S/A (“Cromossomo”) of common shares issued by
the Company, as a result of which Edson de Godoy Bueno and
Dulce Pugliese de Godoy Bueno (shareholders owning, indirectly,
all of the capital stock of Cromossomo), will control, directly and
indirectly, more than 70% of the capital of the Company,
pursuant to Act of Concentration 08700.002372/2014-07. CADE’s
approval was conditioned on complying with an Agreement on
Control of Concentrations (“ACC”).
The ACC is the equivalent mechanism under current antitrust law
(Law 12.529/11), as the old Performance Commitment
Instrument applicable under Law 8.884/94.
Furthermore, according to information disclosed by CADE, the
ACC obligates Cromossomo’s shareholders to formally adhere to
the obligations that had been provided for in the Performance
Commitment Instrument the Company executed with CADE, in
the
official
papers
for
Act
of
Concentration

08012.010038/2010-4, which analyzed the association of DASA,
MD1 Diagnósticos S.A. and others, as reported in a Material Fact
notice disclosed by the Company on December 4, 2013.
The Company has not had access to any information other than
that
posted
by
CADE
at
the
following
link:

21/28

3nd QUARTER RESULTS

http://www.cade.gov.br/Default.aspx?1427f70110051b18e250e3
73cf74
Change of the Board of Directors’ and Statutory Audit
Committee’s Members
On July 24, 2014, the Board of Directors accepted the resignation
presented to the Company on July 17, 2014 by Mr. Maurício
Bittencourt Almeida Magalhães, from the position of Board of
Director member to which he was elected at the Annual
Shareholders’ Meeting held on April 22, 2013 to hold office until the
meeting wherein the closing balance sheet for the year of 2014 is
analyzed. On the same date, the Board of Directors approved the
appointment of Mr. Marcelo Noll Barboza to fill in the position of
Board of Directors member previously held by Mr. Maurício
Bittencourt Almeida Magalhães, pursuant to Paragraph Three of
Article 18 of the Company’s Bylaws and Article 150 of the Brazilian
Corporations Law, and said new Board member will serve until the
date of the next shareholders’ meeting, when the proposal for his
election to fill in the position of Mr. Maurício Bittencourt Almeida
Magalhães will be submitted to the Shareholders.
The Board also accepted on the same date the resignation letter
dated July 17, 2014, from the position of member of the Statutory
Audit Committee, to which Mr. Maurício Bittencourt Almeida
Magalhães was elected at the Board of Directors’ meeting held on
April 22, 2013, and the Board also elected to replace the former
member, Mr. Marcelo Noll Barboza, as a member without specific
designation, to serve for an unified term of office with other
members of the Statutory Audit Committee until April 21, 2023.

Resignation and Election of Executive Officers
On July 24, 2014, the Board of Directors accepted the resignation of
Mr. Marcelo Rucker, from the position of Personnel Officer, which
will be extinguished. On the same date, Mr. Adriano Brito da Costa
Lima were elected for the position of Vice President of Human

22/28

3nd QUARTER RESULTS

Resources, with the same duties previously given to the Personnel
Officer and Mrs. Lilian Cristina Pacheco Lira, to hold the position of
Risk Management, Compliance and Internal Controls Officer to be
exercised jointly with the position of Chief Legal Officer, consisting
among their duties beyond those committed by law, to guide,
manage, coordinate and oversee the area of risk management,
compliance and internal controls, with an unified term of office
with other members of the Board of Executive Officers until the
Annual Shareholders’ Meeting which is held to approve the accounts
for the fiscal year ending on December 31, 2015.
The Vice President of Human Resources will hold the position of
member of the Company’s Personnel Committee, replacing Mr.
Marcelo Rucker to fulfill the term of office until the Annual
Shareholders’ Meeting held to analyze the financial statements for
the year of 2014, with allowed reelection and extension of term until
the investiture of their successors.

23/28

3nd QUARTER RESULTS

Income statement

R$ million

3Q13

3Q14

D%

Gross Operating Revenues
Deductions
Sales Taxes

716.7
(70.6)
(39.2)

800.7
(72.9)
(50.7)

11.7%
3.3%
29.3%

Discounts
Net Operating Revenues
Cost of Services Rendered

(31.4)
646.2
(436.7)

(22.2)
727.8
(487.7)

-29.1%
12.6%
11.7%

(125.8)
(116.2)
(165.2)

(138.5)
(127.1)
(186.5)

10.1%
9.4%
12.9%

General
Depreciation and amortization
Gross Profit

(6.6)
(22.9)
209.5

(9.0)
(26.7)
240.1

36.5%
16.4%
14.6%

Operating Expenses
General and Administrative
Profit Sharing Program

(125.0)
(112.0)
(7.8)

(152.8)
(128.2)
(9.8)

22.2%
14.5%
25.6%

Other Operating Revenues/ Expenses
Depreciation and Amortization
Net Financial Expenses

8.2
(13.4)
(27.3)

(0.1)
(14.6)
(21.7)

-101.7%
9.2%
-20.6%

Operating Earnings
Income Tax and Social Contribution
Net Income (Loss)

57.1
(21.1)
36.0

65.6
(22.0)
43.6

14.9%
4.2%
21.2%

Personnel
Materials
Services and Utilities

24/28

3nd QUARTER RESULTS

Consolidated balance sheet (R$ thousands)
Balance Sheet - R$ thousands

Total Assets
Current
Cash and cash equivalents
Marketable securities
Accounts receivable
Inventories
Recoverable taxes
Prepaid expenses
Other current assets

3Q13

2Q14

4,351,510

4,591,562

1,112,903

1,417,707

222,760

441,821

29,675

55,822

592,556

639,582

57,536

67,953

175,185

178,274

1,159

4,161

34,030

30,094

3,238,607

3,173,855

3Q14

4,737,194 Total equity and liabilities
1,548,231 Current liabilities
516,605 Current liabilities
75,547 Accounts payable to suppliers
678,627 Loans and financing
65,185 Tax liabilities
182,592 Social security and labor liabilities
2,351 Installment payment of taxes
27,325 Accounts payable from acquisition of subsidiaries

3Q13

2Q14

3Q14

4,351,510

4,591,562

4,737,194

763,190

752,598

834,801

78,562

81,180

87,530

97,658

109,681

112,477

44,654

26,424

33,814

122,852

132,656

154,220

4,757

2,636

1,861

1,668

1,735

1,758

332,037

317,359

351,703

Debentures
Noncurrent assets
Long-term receivables

3,188,963 Dividends and interest on shareholders’ equity

4

78

126

310

80,871

80,539

91,360

78
-

198,338

142,426

Marketable securities at fair value

39,079

36,384

37,330

Deferred tax assets

59,178

58,812

56,651 Noncurrent liabilities

886,007

1,069,079

1,089,176

2,508

5,212

3,392 Long-Term Liabilities

886,007

1,069,079

1,089,176

822

489

27,333

57,213

52,677

96,751

41,529

23,549

21,826

21,844

779

855

75,977

89,765

101,356

55,593

50,098

61,221

47,873

42,940

43,971

652,105

804,522

805,042

Other credits
Prepaid expenses
Judicial deposits
Investments
Property and Equipment
Intangible assets

692,917

682,296

2,346,574

2,348,278

148,825 Financial instruments

945 Loans and financing
50,506 Installment payment of taxes
799 Deferred taxes
692,312 Provision for contingencies
2,347,027 Accounts payable from acquisition of subsidiaries
Debentures
Related parties
Financial instruments derivatives
Others
Total equity
Capital
Special reserve for goodwill on merger
Profit reserves
Equity evaluation adjustment
Retained Earnings

-

-

37

26

3,539

2,689

3,065

2,702,313

2,769,885

2,813,217

2,234,135

2,234,135

2,234,135

65,427

65,366

65,366

323,135

423,532

423,532

-

1,100

629

629

94,591

60,330

103,837

Granted options

2,027

2,003

1,756

Treasury stock

(18,617)

(16,905)

(16,905)

Non-controlling interests

25/28

-

515

795

866

3nd QUARTER RESULTS

Statement of cash flows (R$ thousands)
Account

Quartely
07/01/13 to 09/30/13

Quartely
07/01/14 to 09/30/14

Year-to-date 2013

#

Year-to-date 2014

Net cash from operating activities
Cash from operations
Net income for the period
Depreciation and amortization
Restatement of contingencies
Deferred tax
Restatement of interest and exchange variation on loans
Residual Poperty and equipment and intangible assets w rite off
Stock option plan
Provision for disallow ance and default
Restatement of interest and exchange variation on finnancial investments

55,884
111,427
35,992
36,304
7,075
14,188
28,843
7,208
268
(17,722)
(729)

151,300
148,941
43,634
41,301
7,202
13,752
47,260
903
(246)
3,785
(8,650)

194,031
305,803
94,724
115,863
12,498
26,672
79,281
9,359
667
(31,935)
(1,326)

391,377
386,565
104,167
127,234
20,856
20,496
116,122
974
491
4,469
(8,244)

Changes in assets and liabilities
Increase in accounts receivable and other receivables
Increase in inventories
Increase in other current assets
Decrease (increase) in other non-current assets
Decrease in trade accounts payable
Increase in accounts payable and provisions

(50,741)
(3,488)
52
(19,550)
18,436
(9,914)
(36,277)

8,994
(41,106)
2,768
216
3,071
6,350
37,695

(91,676)
(62,166)
3,906
(33,593)
17,786
(5,867)
(11,742)

20,584
(114,076)
(5,802)
(8,284)
60,854
22,051
65,841

(4,802)
(4,802)

(6,635)
(6,635)

(20,096)
(20,096)

(15,772)
(15,772)

Net cash from investing activities
Additions to property and equipment
Additions to intangible assets
Financial Investments
Proceeds from sale of property and equipment
Redemption of marketable securities for trading

(31,359)
(23,964)
(7,395)
-

(62,044)
(42,607)
(8,422)
(20,338)
60
9,263

(101,691)
(78,036)
(23,655)
-

(109,988)
(99,131)
(16,802)
(20,338)
268
26,015

Net cash from financing activities
Loans taken out
Payment of loans
Dividends and IOC paid
Capital payment

(8,491)
71,175
(76,483)
(3,183)

(14,472)
67,188
(77,623)
(4,037)

(98,099)
71,377
(101,934)
(20,500)
(47,042)

(300,665)
130,593
(320,983)
(31,372)
(78,903)

Increase (decrease) in cash and cash equivalents
At beginning of period
At end of period

16,034
206,726
222,760

74,784
441,821
516,605

(5,759)
228,519
222,760

(19,276)
535,881
516,605

16,034
-

74,784
-

(5,759)
-

(19,276)
-

Other
Income tax and social contribution paid

26/28

3nd QUARTER RESULTS

Statement of added value (R$ thousands)
Quartely
07/01/13 to 09/30/13

Account

Quartely
07/01/14 to 09/30/14

Year-to-date 2013

Year-to-date 2014

(=) 1. Revenue
1 - Sales of goods, products and services
4 - Reversal of allow ance for doubtful accounts
2 - Other revenue

(-)
(-)
(-)

724,883
716,725
(90)
8,248

800,831
800,732
(44)
143

2,065,756
2,055,677
(160)
10,239

2,278,705
2,277,610
(128)
1,223

(=) 2. Inputs acquired from third parties
2 - Inputs used
1 - Cost of products, goods and services sold
4 - Materials, energy, third-party services and other
3 - Recovery/Loss of assets

(+)
(+)
(+)
(+)

343,696
244,380
99,316
-

377,049
272,899
104,150
-

981,744
711,741
270,003
-

1,077,150
779,882
297,268
-

381,187

423,782

1,084,012

1,201,555

36,304

41,287

115,863

127,181

344,883

382,495

968,149

1,074,374

40,154
40,154
-

27,218
27,218
-

74,621
74,621
-

66,473
66,473
-

385,037

409,713

1,042,770

1,140,847

385,037
159,667
90,232
99,146
82
35,910

409,713
176,395
106,121
83,563
127
43,507

1,042,770
455,484
259,056
233,506
133
94,591

1,140,847
509,540
283,769
243,371
330
103,837

3. = (1-2) Gross value added
4. Depreciation, amortization and depletion

(+)

5. = (3-4) Net value added produced
(=) 6. Transferred value added received
6.1 Equity pickup
6.2 Financial income
6.3 Other

(-)
(-)
(-)

7. = (5+6) Total value added to be distributed
(=) 8. Distribution of value added
8.1 Personnel
8.2 Taxes, fees and contributions
8.3 Debt remuneration
8.4 IOC and dividends
Non-controlling interest
8.5 Retained profits

(+)
(+)
(+)
(+)
(-)
(+)

27/28

3nd QUARTER RESULTS

Statement of changes in shareholder´s equity (R$ thousands)
01/01/2014 a 30/09/2014
Description

Capital Reserve
Granted options and
treasury shares

Paid-In
Capital

Retained earnings
accumulated
losses

Profit
Reserves

Other
comprehensive
income

Non-controlling
interest

Equity

Consolidated
equity

Opening balances

2,234,135

49,727

423,409

0

943

2,708,214

596

2,708,810

Adjusted opening balances

2,234,135

49,727

423,409

0

943

2,708,214

596

2,708,810

Shareholders capital transaction

0

490

0

0

0

490

0

490

Recognized options granted

0

490

0

0

0

490

0

490

Dividends

0

0

0

0

0

0

0

0

Additional proposed dividend

0

0

0

0

0

0

0

0

Total comprehensive income

0

0

0

103,837

0

103,837

270

104,107

Net income for the period

0

0

0

103,837

0

103,837

330

104,167

Other comprehensive income

0

0

0

0

0

0

-60

-60

Non-controlling interest

0

0

0

0

0

0

-60

-60

Internal Changes in Equity

0

0

123

0

-314

-191

0

-191

Reserve constitution

0

0

0

0

0

0

0

0

Additional proposed dividend

0

0

-191

0

0

-191

0

-191

Depreciation of deemed cost
Closing balances

0

0

314

0

-314

0

0

0

2,234,135

50,217

423,532

103,837

629

2,812,350

866

2,813,216

01/07/2014 a 30/09/2014
Description

Capital Reserve
Granted options and
treasury shares

Paid-In
Capital

Opening balances

2,234,135

Adjusted opening balances

Retained earnings
accumulated
losses

Profit
Reserves

Other
comprehensive
income

Non-controlling
interest

Equity

Consolidated
equity

50,464

423,532

60,330

629

2,769,090

795

2,769,885

2,234,135

50,464

423,532

60,330

629

2,769,090

795

2,769,885

Shareholders capital transaction

0

-247

0

0

0

-247

0

-247

Recognized options granted

0

0

0

0

0

0

0

0

Dividends

0

-247

0

0

0

-247

0

-247

Additional proposed dividend

0

0

0

0

0

0

0

0

Total comprehensive income

0

0

0

43,507

0

43,507

71

43,578

Net income for the period
Other comprehensive income

0
0

0
0

0
0

43,507
0

0
0

43,507
0

126
-55

43,633
-55

Non-controlling interest

0

0

0

0

0

0

-55

-55

Internal Changes in Equity

0

0

0

0

0

0

0

0

Reserve constitution

0

0

0

0

0

0

0

0

Additional proposed dividend

0

0

0

0

0

0

0

0

Depreciation of deemed cost

0

0

0

0

0

0

0

0

2,234,135

50,217

423,532

103,837

629

2,812,350

866

2,813,216

Closing balances

01/01/2013 to 30/09/2013
Description

Capital Reserve
Granted options and
treasury shares

Paid-In
Capital

Retained earnings
accumulated
losses

Profit
Reserves

Other
comprehensive
income

Equity

Non-controlling
interest

Consolidated
equity

Opening balances

2,234,135

48,171

322,933

0

1,571

2,606,810

382

2,607,192

Adjusted opening balances

2,234,135

48,171

322,933

0

1,571

2,606,810

382

2,607,192

Shareholders capital transaction

0

666

0

0

0

666

0

666

Capital increases

0

0

0

0

0

0

0

0

Recognized options granted

0

666

0

0

0

666

0

666

Dividends

0

0

0

0

0

0

0

0

Total comprehensive income

0

0

0

94,591

0

94,591

133

94,724

Net income for the period

0

0

0

94,591

0

94,591

133

94,724

Other comprehensive income

0

0

0

0

0

0

0

0

Non-controlling interest

0

0

0

0

0

0

0

0

Internal Changes in Equity

0

0

202

0

-471

-269

0

-269

Reserve constitution

0

0

0

0

0

0

0

0

Additional proposed dividend

0

0

-269

0

0

-269

0

-269

Depreciation of deemed cost
Closing balances

0
2,234,135

0
48,837

471
323,135

0
94,591

-471
1,100

0
2,701,798

0
515

0
2,702,313

01/07/2013 a 30/09/2013
Description

Capital Reserve
Granted options and
treasury shares

Paid-In
Capital

Retained earnings
accumulated
losses

Profit
Reserves

Other
comprehensive
income

Non-controlling
interest

Equity

Consolidated
equity

Opening balances

2,234,135

48,569

322,978

58,681

1,257

2,665,620

433

2,666,053

Adjusted opening balances

2,234,135

48,569

322,978

58,681

1,257

2,665,620

433

2,666,053

Shareholders capital transaction

0

268

0

0

0

268

0

268

Capital increases

0

0

0

0

0

0

0

0

Recognized options granted

0

268

0

0

0

268

0

268

Dividends

0

0

0

0

0

0

0

0

Total comprehensive income

0

0

0

35,910

0

35,910

82

35,992

Net income for the period

0

0

0

35,910

0

35,910

82

35,992

Other comprehensive income

0

0

0

0

0

0

0

0

Non-controlling interest

0

0

0

0

0

0

0

0

Internal Changes in Equity

0

0

157

0

-157

0

0

0

Reserve constitution

0

0

0

0

0

0

0

0

Additional proposed dividend

0

0

0

0

0

0

0

0

Depreciation of deemed cost

0

0

157

0

-157

0

0

Closing balances

2,234,135

48,837

28/28

323,135

94,591

1,100

2,701,798

515

0
2,702,313