Diversification strategy partially offsets lower Gross Bookings in Brazil and Argentina. Excluding both countries, Gross Bookings +11% Quarter-on-Quarter (QoQ)
Revenue Margins up 78 bps QoQ to 14%
Strong balance sheet with nearly $326 million in cash, cash equivalents and restricted cash
BRITISH VIRGIN ISLANDS–(BUSINESS WIRE)–Despegar.com, Corp. (NYSE: DESP), (“Despegar” or the “Company”) the leading online travel company in Latin America, today announced unaudited results for the three-months ended March 31, 2021 (1Q21). Financial results are expressed in U.S. dollars and are presented in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).
First Quarter 2021 Key Financial and Operating Highlights
(For definitions, see page 14)
- Impacted by the quarter spike in COVID-19 pandemic, Gross Bookings declined 8% quarter-over-quarter (QoQ) to $369.2 million, 53% year-over-year (YoY) and 68% in comparison with 1Q19, a pre-pandemic period1. Excluding Brazil and Argentina, Gross Bookings would have increased 11% QoQ.
- Transactions decreased 2% QoQ. Excluding Brazil, Transactions grew 12% sequentially. Transactions declined 40% (YoY) and 54% when compared to 1Q19.
- Room Nights decreased 9% QoQ, 49% YoY and 64% when compared to 1Q19. Mobile accounted for 50% of Transactions in 1Q21, up 584 bps YoY.
- As Reported Revenues were $51.9 million, representing declines of 3% QoQ, 32% YoY and 61% when compared to 1Q19. Excluding the impact of extraordinary cancellations, Revenues would have declined 4% sequentially to $56.1 million, and 37% YoY.
- Selling and marketing expenses decreased 52% YoY, in line with the decline in Gross Bookings in the period. Sequentially, Selling and marketing expenses increased 17% mainly due to an increase in marketing-direct expenses and personnel expenses, but was down 62% when compared to 1Q19.
- Excluding the effect of the Best Day and Koin acquisitions, Structural Costs declined 30% YoY, reflecting measures implemented throughout 2020, and increased 3% QoQ to $29.9 million reflecting primarily payroll FX impact particularly in Argentina.
- Adjusted EBITDA as reported in 1Q21 was a loss of $20.0 million reflecting the second wave of the COVID-19 pandemic, particularly in Brazil and Argentina. This compares to losses of $19.3 million in 4Q20 and of $13.9 million in 1Q20, and income of $15.2 million in 1Q19. Excluding Extraordinary Charges, Adjusted EBITDA was a loss of $14.1 million in 1Q21 compared to losses of $9.3 million in 4Q20 and $1.4 million in 1Q20, and income $15.2 million in 1Q19.
- Use of cash, cash equivalents and restricted cash of $24.7 million in 1Q21, which includes a positive contribution of $6.9 million in operating working capital. This compares to use of cash, cash equivalents and restricted cash of $35.4 million in 4Q20, $87.7 million in 1Q20 and $36.1 million in 1Q19.
- Solid balance sheet – Cash and cash equivalents of $325.7 million at quarter end, including $16.3 million in restricted cash.
1 The Company has chosen to also include comparisons against 1Q19, a pre-pandemic period, in this press release as a means for the investment community to compare 1Q21 results to a period not affected by the COVID-19 pandemic.
Message from the CEO
Commenting on the Company’s performance, Damian Scokin, CEO stated, “As anticipated, this past quarter we observed a sequential slowdown in the recovery trend that started in 2Q20, due to the impact of the second wave of COVID-19 on overall travel, and particularly in Brazil and Argentina.
In this choppy market environment, our geographic diversification efforts are having the desired results. A healthy performance in Mexico with sequential low double digit growth in Gross Bookings partially offset the declines in Brazil and Argentina. Countries in the Andean Region including Colombia and Chile also delivered sequential improvement.
Our strategy to prioritize profitability until there is more visibility of the recovery of the travel industry, is reflected in the improvement of our revenue margin as we achieved our highest take rate since 2016. Moreover, we ended the quarter with nearly $326 million in cash and equivalents.
We expect the stagnation in the recovery trend to continue at least throughout 2Q21. However, we are confident that travel demand will pick up as observed in other geographies as we enter the South American spring/summer seasons and the COVID-19 vaccination rollout accelerates.
In the meantime, we remain focused on further strengthening our competitive advantages, including: i) making steady progress on the integration of Best Day, ii) expanding the reach of our payment platform in Brazil, and iii) broadening our relationships with our travel partners, while incorporating the product mix of the acquired companies is reflected in the higher share of non-air revenues in the quarter. We believe that our position as a leaner and more geographically diversified company and a profit maximization strategy will enable us to emerge from the COVID-19 pandemic in a solid position to meet the resultant pick-up in travel demand.”
Operating and Financial Metrics Highlights | |||||||
(In millions, except as noted) | |||||||
1Q21 |
|
1Q20 |
% Chg |
|
1Q19 |
% Chg |
|
Operating metrics | |||||||
Number of transactions |
1.228 |
2.031 |
(40%) |
2.652 |
(54%) |
||
Gross bookings |
$369.2 |
$790.4 |
(53%) |
$1,157.5 |
(68%) |
||
Financial metrics | |||||||
Revenues |
$51.9 |
$76.1 |
(32%) |
$133.1 |
(61%) |
||
Net income (loss) |
($37.6) |
($15.2) |
n.m. |
$1.9 |
n.m. | ||
Net income (loss) attributable to Despegar.com, Corp |
($37.4) |
($15.2) |
n.m. |
$1.9 |
n.m. | ||
Adjusted EBITDA |
($20.0) |
($13.9) |
n.m. |
$15.2 |
n.m. | ||
EPS Basic 2 |
($0.54) |
($0.22) |
n.m. |
$0.03 |
n.m. | ||
EPS Diluted 2 |
($0.54) |
($0.22) |
n.m. |
$0.03 |
n.m. | ||
Extraordinary Charges | |||||||
Adjusted EBITDA |
($20.0) |
($13.9) |
n.m. |
$15.2 |
n.m. | ||
Extraordinary cancellations due to COVID-19 |
(4.3) |
(12.5) |
– |
||||
Extraordinary restructuring charges |
(1.7) |
– |
– |
||||
Adjusted EBITDA (Excl. Extraordinary Charges) |
($14.1) |
($1.4) |
n.m. |
$15.2 |
n.m. | ||
Average Shares Oustanding – Basic 1 |
81.175 |
69,668 |
69,294 |
||||
Average Shares Oustanding – Diluted 1 |
81.175 |
69,668 |
70,377 |
||||
EPS Basic (Excl. Extraordinary Charges) 2 |
(0.47) |
(0.01) |
0.03 |
||||
EPS Diluted (Excl. Extraordinary Charges) 2 |
(0.47) |
(0.01) |
0.03 |
||||
1. In thousands | |||||||
2. Whole numbers | |||||||
n.m.: Not Meaningful |
Business Update on COVID-19
Governmental Flight Restrictions on Mobility
Government restrictions to mobility across LatAm, resulted in uneven travel levels and volatility throughout the region.
The level of government restrictions in Latam was mixed throughout the region. Given the spike in COVID-19 cases in Brazil, restrictions have been in place since mid-February 2021, including curfews and lockdown of non-essential activities. As a result of these new restrictions, total industry air passenger traffic in Brazil dropped to 22% of 2019 levels in March, 2021, from 42% in November, 2020.
By contrast, in Mexico mobility restrictions were eased and non-essential activities in Mexico City reopened as of mid-February. In light of these improvements in mobility, total industry air passenger traffic reached 62% of 2019 levels in March 2021, from nearly 50% in the previous month.
In Argentina, in view of an increase of COVID-19 cases since March 2021, the government imposed additional travel restrictions for Argentine nationals upon arrival. Starting March 27, 2021, flights from Brazil, Chile, Mexico and the United Kingdom were banned from entering the country. Foreigners that are not residents are not allowed to enter the country. Total industry air passenger remained flat around 15% of 2019 levels from December 2020 until today.
Despite an active vaccination plan in Chile since mid-February, 2021, another strong lockdown was imposed in the metropolitan areas as of mid-March and borders remain closed since April 1, 2021 in an effort to contain the spike of COVID-19 cases. Total industry air passenger traffic decreased to 21% of 2019 levels in March 2021, from 31% in the prior month.
In Colombia, as of the first week of February 2021, localized restrictions were lifted. However, as of the end of March some restrictions were put in place without affecting civil aviation. Total industry air passenger traffic remained constant at around 38% of 2019 levels since December 2020 until March 2021 with an improvement to 43% in March 2021.
Cost Control Initiatives
Structural Costs were $29.9 million in 1Q21, 30% lower YoY as a result of a cost reduction program put in place towards the end of 2019 and expanded at the onset of COVID-19 pandemic. These cost savings included YoY declines of 28% in total payroll and 33% in non-payroll expenses, among others.
The 3% QoQ increase in structural costs from $28.9 million in 4Q20, is explained by the inclusion of costs related to specific data privacy and loyalty program projects and payroll FX impact particularly in Argentina.
Solid Financial Position
Despegar closed the quarter with a solid balance sheet with cash and cash equivalents of $325.7 million at quarter end including $16.3 million in restricted cash.
Aggregate Net Operational Short-term Obligations were $200.9 million as of quarter end, compared to Aggregate Net Operational Short-Term Obligations of $193.0 million as of December 31, 2020.
Overview of First Quarter 2021 Results
Key Operating Metrics | ||||||||||||
(In millions, except as noted) | ||||||||||||
1Q21 |
1Q20 |
% Chg |
FX Neutral % Chg |
1Q19 |
% Chg | |||||||
$ | % of total | $ | % of total | $ | % of total | |||||||
Gross Bookings |
$369.2 |
$790.4 |
(53%) |
(48%) |
$1,157.5 |
(68%) |
||||||
Average selling price (ASP) (in $) |
$301 |
$389 |
(23%) |
(14%) |
$436 |
(31%) |
||||||
Number of Transactions by Segment & Total | ||||||||||||
Air |
0.7 |
53% |
1.2 |
60% |
(46%) |
1.5 |
57% |
(57%) |
||||
Packages, Hotels & Other Travel Products |
0.6 |
47% |
0.8 |
40% |
(30%) |
1.1 |
43% |
(50%) |
||||
Total Number of Transactions |
1.2 |
100% |
2.0 |
100% |
(40%) |
2.7 |
100% |
(54%) |
During 1Q21, Transactions decreased 2.3% sequentially to 1.2 million, explained by a surge in COVID-19 cases in Brazil and the subsequent restrictions put in place by the government which impacted travel. This compares with declines in transactions of 40% YoY and 54% in comparison with 1Q19, a pre-pandemic period.
The contraction in the Brazilian travel market was partially offset by an increase in the level of transactions in Mexico, Colombia and Chile, in addition to a 0.2 million contribution in transactions by Best Day.
Gross Bookings decreased 8% sequentially to $369.2 million, mainly driven by an increase in COVID-19 cases in Brazil and a decrease in average selling price (the “ASPs”) in Argentina. Excluding Brazil and Argentina, Gross Bookings would have increased sequentially by 11%.
YoY and in comparison with 1Q19, Gross Bookings decreased 53% and 68%, respectively. Excluding the contribution from Best Day, Gross Bookings would have decreased 64% YoY and 76% when compared to 1Q19.
Sequentially, the ASP in 1Q21 decreased 6% to $301 per transaction. YoY, the ASP decreased 14% on an FX neutral basis and 23% as reported. When compared to 1Q19, the ASP decreased 31%. On an as reported basis, the YoY decrease in ASP was largely driven by: i) a mix-shift to domestic travel products resulting from the COVID-19 pandemic and the restrictions on international travel imposed by different governments to contain the virus, and ii) FX depreciation across the region, mainly in Brazil and Argentina.
Geographical Breakdown
Geographical Breakdown of Select Operating and Financial Metrics | |||||||
(In millions, except as noted) | |||||||
1Q21 vs. 1Q20 – As Reported | |||||||
Brazil | Mexico | Rest of Latam | Total | ||||
% Chg. | % Chg. | % Chg. | % Chg. | ||||
Transactions (‘000) |
(45%) |
11% |
(52%) |
(40%) |
|||
Gross Bookings |
(68%) |
13% |
(60%) |
(53%) |
|||
ASP ($) |
(43%) |
2% |
(16%) |
(23%) |
|||
Revenues |
(32%) |
||||||
Gross Profit |
(48%) |
||||||
1Q21 vs. 1Q20 – FX Neutral Basis | |||||||
Brazil | Mexico | Rest of Latam | Total | ||||
% Chg. | % Chg. | % Chg. | % Chg. | ||||
Transactions (‘000) |
(45%) |
11% |
(52%) |
(40%) |
|||
Gross Bookings |
(60%) |
14% |
(56%) |
(48%) |
|||
ASP ($) |
(29%) |
2% |
(8%) |
(14%) |
|||
Revenues |
(24%) |
||||||
Gross Profit |
(46%) |
Brazil accounted for 38% of total Transactions for the quarter, a reduction of 8 percentage points (pp) when compared to the previous quarter. This reduction was attributable to a decline in travel triggered by restrictions to contain a new variant of COVID-19 along with the increase in the overall number of COVID-19 cases in the country and the growing relevance of Mexico in Despegar’s geographical footprint.
Gross Bookings decreased 32% QoQ, 68% YoY and 78% when compared to 1Q19. The reduction vis-a-vis 1Q19 is explained by: i) the pandemic’s significant negative impact on demand , ii) a shift to domestic travel, and iii) the depreciation of the Brazilian Real. The last two factors resulted in the ASP declining 16% QoQ, 43% YoY and 50% compared to 1Q19.
Mexico accounted for 28% of total Transactions for the quarter, up from 27% in 4Q20. Transactions and Gross Bookings, which include three-month of Best Day each quarter, improved sequentially by 1% and 7%, respectively due to seasonality and the lifting of restrictions by the authorities.
On a YoY basis, Transactions and Gross Bookings increased by 11% and 13% respectively mainly due to the acquisition of Best Day. Compared to 1Q19, transactions were down 10% and Gross Bookings down 12%.
ASPs increased 6% QoQ and 2% YoY. When compared to 1Q19, ASP declined 2%. On an FX neutral basis, Gross Bookings and ASPs posted a YoY increase of 14% and 2%, respectively.
Across the Rest of Latin America, Despegar reported sequential increases of 22% and 6% in Transactions and Gross Bookings, respectively. These increases were mainly the result of higher levels of demand in Colombia and Chile and to a lesser extent in Argentina. However, on a YoY basis, transactions and gross bookings declined 52% and 60%, respectively. When compared to 1Q19, these metrics declined 66% and 75%.
ASP decreased 13% QoQ and 16% YoY. Compared to 1Q19, ASP declined 25%. On an FX neutral basis, Gross Bookings and ASPs posted YoY decrease of 56% and 8%, respectively.
Revenue
Revenue Breakdown | ||||||||||
1Q21 |
1Q20 |
% Chg |
1Q19 |
% Chg | ||||||
$ | % of total | $ | % of total | $ | % of total | |||||
Revenue by business segment (in $Ms) (Excluding Cancellations) | ||||||||||
Air |
$16.7 |
32% |
$36.9 |
49% |
(55%) |
$49.7 |
37% |
(66%) |
||
Packages, Hotels & Other Travel Products |
$35.2 |
68% |
$39.1 |
51% |
(10%) |
$83.4 |
63% |
(58%) |
||
Total Revenue |
$51.9 |
100% |
$76.1 |
100% |
(32%) |
$133.1 |
100% |
(61%) |
||
Total revenue margin |
14.0% |
9.6% |
+442 bps |
11.5% |
+254 bps |
|||||
Extraordinary Charges | ||||||||||
Extraordinary Cancellations due to COVID-19 |
(4.3) |
(12.5) |
||||||||
Total Revenue (Excluding Extraordinary Charges) |
$56.1 |
$88.6 |
(37%) |
133.11 |
(58%) |
|||||
Total revenue margin (Excluding Extraordinary Charges) |
15.2% |
11.2% |
+399 bps |
11.5% |
+370 bps |
Sequentially, as reported revenues in 1Q21 decreased 3% to $51.9 million. Extraordinary cancellations due to the COVID-19 pandemic decreased 15% compared to the prior quarter and amounted to $4.3 million. Excluding extraordinary cancellations, revenues were $56.1 million, 4% lower when compared to 4Q20.
On a QoQ basis, Revenue Margin improved by 78 basic points and by 69 basic points when excluding extraordinary cancellations, reflecting the Company’s profitability focus.
On a YoY basis, as reported revenues declined 32% mainly as a result of the COVID-19 health crisis which has been impacting revenues since February 2020. Both 1Q20 and 1Q21 include the provisioning of extraordinary cancellations due to the pandemic. Extraordinary cancellations due to the COVID-19 pandemic decreased 66% YoY and amounted to $4.3 million. Excluding these extraordinary cancellations, revenues would have decreased 37% YoY.
Revenue Margin increased 442 basic points YoY to 14%. This increase is mainly explained by:i) higher upfront and customer fees in the context of a focus on profitability of the Company, and ii) an increase in margins from Best Day.
Compared to 1Q19, as reported revenues declined 61%, reflecting the full impact of the pandemic on travel demand and on booking cancellations. Excluding extraordinary cancellations, revenues were 58% lower during the period.
Revenue margin increased 254 basic points to 14% when compared to 1Q19 driven by: i) the two-fold contribution from Best Day: an increased share of non-air products and the joint negotiation of commercial terms with travel partners, and ii) larger share of higher-margin stand-alone packages. Excluding the impact of extraordinary cancellations, Revenue Margin would have been 15.2% in 1Q21, up 370 basic points from 11.5% in 1Q19.
Cost of Revenue and Gross Profit
Cost of Revenue and Gross Profit | |||||||
(In millions, except as noted) | |||||||
1Q21 |
|
1Q20 |
% Chg |
|
1Q19 |
% Chg |
|
Revenue |
$51.9 |
$76.1 |
(32%) |
$133.1 |
(61%) |
||
Cost of Revenue |
$29.6 |
$33.5 |
(12%) |
$45.2 |
(35%) |
||
Gross Profit / (Loss) |
$22.2 |
$42.6 |
(48%) |
$87.9 |
(75%) |
||
Extraordinary Charges | |||||||
Total Revenue |
$51.9 |
$76.1 |
$133.1 |
||||
Extraordinary Cancellations due to COVID-19 |
($4.3) |
(12.5) |
– |
||||
Total Revenue (Excl. Extraordinary Charges) |
$56.1 |
$88.6 |
(37%) |
$133.1 |
(58%) |
||
Total Cost of Revenue |
$29.6 |
$33.5 |
$45.2 |
||||
Extraordinary restructuring charges |
($0.1) |
– |
– |
||||
Total Cost of Revenue (Excl. Extraordinary Charges) |
$29.5 |
$33.5 |
(12%) |
$45.2 |
(35%) |
||
Gross Profit / (Loss) (Excl. Extraordinary Charges) |
$26.6 |
$55.1 |
(52%) |
$87.9 |
(70%) |
Cost of Revenue, is principally composed of credit card processing fees, bank fees related to customer financing installment plans offered and fulfillment center expenses,
On a sequential basis, Higher fulfilment costs incurred to enhance customer care levels, were the main driver behind the 15% QoQ increase in Cost of Revenue. This, together with the impact on revenues from the pandemic, resulted in an 19% decline in Gross profit to $22.2 million in 1Q21.
Excluding the impact of extraordinary cancellations and restructuring charges both in 1Q21 and 4Q20, gross profit would have decreased 19% QoQ.
On a YoY basis, Cost of revenue decreased 12% to $29.6 million. The decline in Cost of revenue mainly reflects lower credit card processing fees and cost of installments in line with lower demand. These reductions were partially offset by increased fulfilment cost resulting from a higher level of personalized assistance in connection with cancellations and reschedules. In turn, gross profit was down 48% YoY in 1Q21 to $22.2 million.
Excluding the impact of extraordinary cancellations and severance charges, gross profit in 1Q21 would have been $26.6 million, down 52% YoY.
Compared to 1Q19, Gross Profit declined 75% and would have declined 70% when excluding extraordinary cancellations.
Cost of revenue declined 35% compared to 1Q19. Cost of installments and credit card processing fees declined in line with the drop in Transactions and Gross Bookings. Improvement with Fraud and errors also contributed to the decrease. By contrast, fulfillment costs were higher as the Company took steps to provide better levels of service to customers.
Operating Expenses
Operating Expenses | |||||||
(In millions, except as noted) | |||||||
1Q21 |
1Q20 |
% Chg |
1Q19 |
% Chg | |||
Selling and marketing |
$15.4 |
$32.0 |
(52%) |
$40.9 |
(62%) |
||
General and administrative |
$20.6 |
$18.0 |
14% |
$20.6 |
(0%) |
||
Technology and product development |
$17.5 |
$17.2 |
2% |
$18.7 |
(7%) |
||
Impairment of long-lived assets |
$5.1 |
– |
n.m. |
– |
n.m. |
||
Total operating expenses |
$58.6 |
$67.2 |
(13%) |
$80.3 |
(27%) |
||
Extraordinary Charges | |||||||
Total Operating Expenses |
$58.6 |
$67.2 |
(13%) |
$80.3 |
(27%) |
||
Extraordinary restructuring charges |
($6.7) |
($1.7) |
– |
||||
Total operating expenses (Excl. Extraordinary Charges) |
$51.9 |
$65.5 |
(21%) |
$80.3 |
(35%) |
On a sequential basis, Operating Expenses decreased 3% to $58.6 million, primarily as a result of a decline in General and Administrative expenses. Excluding Extraordinary Charges, both in 4Q20 and 1Q21, Operating Expenses would have increased 2%.
Structural costs, in turn, increased 3% sequentially to $29.9 million in 1Q21 explained by the impact of specific projects and of FX on payroll charges particularly in Argentina.
On a YoY basis, Operating Expenses declined 13% in 1Q21 to $58.6 million. This decrease reflects: i) a reduction in Structural Costs implemented since 2Q20 to mitigate the impact of the COVID-19 pandemic, and ii) reduced marketing spend to drive efficiency and profitability. These reductions were partially offset by the consolidation of expenses of Best Day and Koin which added $17.8 million in expenses during the quarter, as they were acquired in the second half of 2020, and an impairment of $5.1 million in connection with the acquisition of Viajes Falabella and Best Day.
Excluding the effect of the Best Day and Koin acquisitions, and excluding Extraordinary Charges incurred in both 1Q21 and 1Q20, total operating expenses for the quarter were 48% lower at $34.3 million compared with $65.5 in 1Q20.
Structural Costs declined YoY 30% to $29.9 million in 1Q21.
Compared to 1Q19, Operating Expenses were down 27% to $58.6 million. Considering Despegar on a standalone basis and excluding Extraordinary Charges in 1Q21, Operating Expenses would have been $34.3 million, a decline of 57%.
These reductions are mostly explained by the factors described above, in addition to a reorganization in Argentina and a restructuring of Despegar’s fulfilment center; actions that took place in 1Q20.
Selling and marketing (S&M) expenses decreased 52% YoY, due to the impact of the COVID-19 pandemic on travel demand and Despegar’s efforts to steer traffic through unpaid marketing channels. This decline was partially offset by expenses of $7.0 million at Best Day and Koin. Excluding the impact of the two acquired companies and severance charges in 1Q21, Selling and marketing expenses would have decreased 75% YoY to $8.1 million.
General and administrative (G&A) expenses increased 14% YoY to $20.6 million reflecting the consolidation of Best Day and Koin which together added $7.2 million. Excluding Extraordinary Charges in both quarters and the contribution from the acquired companies, G&A expenses in 1Q21 would have declined 23% YoY to $12.6 million, reflecting lower Structural Costs in the period.
Technology and product development expenses increased 2% YoY reflecting the consolidation of Best Day and Koin which added $3.7 million in costs, together with $0.3 million in Extraordinary Charges incurred in 1Q21. Excluding these additional expenses, Technology and product development costs would have decreased 21% YoY to $13.6 million.
Financial Income/Expenses
In 1Q21, the Company reported a net financial loss of $1.3 million compared to a net financial income of $10.1 million in 1Q20.
The decline reflects mainly the results obtained from FX losses of $0.7 million which compared to a gain of $12.3 million in 1Q20 which was primarily driven by foreign exchange gains mainly from the impact of operational debt incurred with third parties in countries affected by relevant currency depreciation such as Brazil, Mexico and Colombia. This decline was partially offset by lower factoring expenses.
Income Taxes
The Company reported an income tax expense of $0.3 million in 1Q21, compared to $0.7 million in 1Q20. The effective tax rate in 1Q21 was 0.8%, compared to 4.9% in 1Q20.
The decrease in the effective rate is driven by the following: (i) the combination of geographical mix of profits and losses due to the COVID-19 pandemic; (ii) a reduced tax rate in Argentina due to the Knowledge-based-Economy Regime, an incentive program in Argentina; and (iii) the addition of Best Day´s results as a consequence of the acquisition consummated in October 2020. Additionally, based on its current forecast for 2021, the Company would not expect the impact of Global Intangible Low-Taxed Income on its financial statements.
Adjusted EBITDA
Adjusted EBITDA Reconciliation | |||||||
(In millions, except as noted) | |||||||
1Q21 |
1Q20 |
% Chg |
1Q19 |
% Chg | |||
Net income/ (loss) |
($37.6) |
($15.2) |
147% |
$1.9 |
(2092%) |
||
Add (deduct): | |||||||
Financial expense, net |
$1.3 |
($10.1) |
(113%) |
$5.2 |
(75%) |
||
Income tax expense |
$0.3 |
$0.7 |
(59%) |
$0.5 |
(39%) |
||
Depreciation expense |
$1.6 |
$1.9 |
(15%) |
$1.4 |
12% |
||
Amortization of intangible assets |
$7.1 |
$4.9 |
44% |
$3.2 |
122% |
||
Share-based compensation expense |
$2.1 |
$2.2 |
(1%) |
$3.0 |
(28%) |
||
Impairment of long-lived assets |
$5.1 |
– |
n.m. |
– |
n.m. |
||
Restructuring charges |
$0.0 |
$1.7 |
(99%) |
– |
n.m. |
||
Acquisition transaction costs |
– |
– |
n.m. |
– |
n.m. | ||
Adjusted EBITDA |
($20.0) |
($13.9) |
n.m. |
$15.2 |
n.m. |
||
Extraordinary Charges | |||||||
Adjusted EBITDA |
($20.0) |
($13.9) |
$15.2 |
||||
Extraordinary cancellations due to COVID-19 |
(4.3) |
(12.5) |
|||||
Extraordinary restructuring charges |
(1.7) |
||||||
Adjusted EBITDA (Excl. Extraordinary Charges) |
($14.1) |
($1.4) |
n.m. |
$15.2 |
n.m. |
Contacts
IR Contact
Natalia Nirenberg
Investor Relations
Phone: (+54911) 26684490
E-mail: [email protected]