CI&T Reports Third Quarter Financial Results
12/01/2021 - 05:59 PM
CAMPINAS, Brazil --(BUSINESS WIRE)--
CI&T (“Company”, NYSE: CINT), a global digital specialist, today announces its results for the third quarter of 2021 (3Q21) and for the nine months ended September 30, 2021 (9M21). For comparison reasons, we refer to the results for the third quarter of 2020 (3Q20) and for the nine months ended September 30, 2020 (9M20).
Our financial results from 3Q21 and 9M21 contemplate the consolidation of Dextra as of August 10, 2021 , while our pro forma results consider the acquisition of Dextra as if the acquisition had occurred on January 1, 2021 .
3Q21 Highlights:
Net revenue of R$376.0 million , a 55% growth year-over-year (57% in constant currency basis).
44% net revenue growth in the U.S. market compared with 3Q20.
Pro forma net revenue of R$411.1 million .
Cesar Gon , CEO of CI&T , commented "This is our first earnings release since we became a publicly traded company a few weeks ago and I would like to thank all investors for your trust and support throughout this process. In a total offering of US$225 million , CI&T raised US$157 million in net proceeds, which we intend to use to fund our continuous growth.
We are very excited to present a robust 55% year-over-year net revenue growth in the quarter with consistent profitability, even compared to a solid 3Q20 results. This growth was boosted by higher demand from existing clients combined with the addition of new clients to our portfolio, representing our 21st consecutive quarter of net revenue growth. We continue to observe a strong demand environment and we expect our net revenue in the fourth quarter of 2021 to be at least R$440.0 million , a 66% growth year-over-year."
On August 10, 2021 , we concluded the acquisition of Dextra, a company based in Brazil focused on customized software development and an expert in combining design methodologies, agile development and data science to deliver digital products to its clients. With a solid client portfolio, Dextra will allow us to further diversify our client base, as well as strengthen our ability to deliver high quality services to our clients.
The number of clients with net revenue above R$1 million in the last twelve months (LTM) grew from 62 in 2Q21 to 75 in the quarter in all regions (Latam, North America , Europe and APAC), which we expect will contribute to foster our revenue growth in the following years. In terms of geographies, all regions are on a growth trajectory, with the USA continuing to be a fast growing market, with a 44% growth in the period.
We onboarded 1,364 net new employees during 3Q21, including 1,167 from Dextra, totaling 5,398 CI&Ters by the end of the quarter. We continue to develop our people training actions (CI&T University ), fostering career opportunities and growth at all levels.
During the quarter, we began a new R&D joint project, named Cognitive Lab (C-Lab), along with UNICAMP, one of the most respected Brazilian universities, and a few CI&T clients, to develop machine learning tools on human dialogues, aimed at automating customer service processes.
Pro forma financial highlights, including the Dextra acquisition as if the acquisition had occurred on January 1st, 2021
For 3Q21(1) :
Pro forma net revenue of R$411.1 million .
Pro forma adjusted EBITDA of R$91.8 million and 22.3% adjusted EBITDA margin.
Pro forma net profit of R$1.7 million .
Pro forma adjusted net profit of R$27.4 million and 6.7% adjusted net profit margin.
For 9M21:
Pro forma net revenue of R$1,160.5 million .
Pro forma adjusted EBITDA of R$277.5 million and 23.9% adjusted EBITDA margin.
Pro forma net profit of R$88.8 million and 7.6% net profit margin.
Pro forma adjusted net profit of R$117.2 million and 10.1% adjusted net profit margin.
(1) The Pro Forma numbers for the three months ended September 30, 2021 (3Q21) are derived from the difference of the unaudited pro forma condensed statement of profit and loss for the nine months ended September 30, 2021 and the unaudited pro forma condensed statement of profit or loss for the six months ended June 30, 2021 .
3Q21 CI&T Financial highlights, including the Dextra acquisition as of August 10, 2021
Net revenue of R$376.0 million , an increase of R$133.1 million compared to 3Q20, a 55% growth in the period, of which 36% was organic growth and 19% was related to the Dextra acquisition as of August 10th .
Net revenue growth on a constant currency basis was 57% year-over-year.
3Q21 net revenue breakdown:
by industry vertical: financial services 36% ; food & beverages 21% ; pharmaceuticals and cosmetics 14% ; technology, media and telecom 12% ; and others 17% .
by geographic region: USA 44% ; Brazil 51% ; Asia Pacific and Japan 3% ; and Europe 2% .
by client concentration: top one client 17% ; and top 10 clients 60% .
Adjusted EBITDA of R$80.1 million , an increase of R$14.8 million or 23% over 3Q20. Adjusted EBITDA margin was 21.3% .
Net loss of R$2.2 million , compared to a net profit of R$39.5 million in the same quarter of 2020.
Adjusted net profit of R$24.5 million in the quarter, a reduction of R$15.3 million in relation to 3Q20. Adjusted net profit margin was 6.5% .
Comments on the 3Q21 financial performance
Net revenue was R$376.0 million , an increase of R$133.1 million or 55% year-over-year, mainly due to higher demand for digital transformation from our existing clients and the addition of new clients to our portfolio, combined with the consolidation of Dextra as of August 10, 2021 . In terms of geographic region, the highlight for the quarter was the net revenue increase in the U.S. , from R$114.6 million in 3Q20 to R$165.0 million in 3Q21, a 44% growth.
The costs of services provided amounted to R$246.8 million in the quarter, an increase of R$96.5 million or 64% in relation to 3Q20, mainly due to higher costs with employees, related to employee promotions and new hires in response to the growing demand for our services.
As a result, gross profit was R$129.1 million in the quarter, R$36.5 million higher than 3Q20. Adjusted gross profit totaled R$139.6 million in 3Q21, an increase of 41% over the same quarter last year, with an adjusted gross margin of 37.1% in the quarter, compared to 40.6% in 3Q20. The gross profit was adjusted for costs related to depreciation and amortization and stock options compensation plan expenses. See "Reconciliation of Non-IFRS measures" for reconciliation of adjusted gross profit to gross profit.
Selling, general and administrative (SG&A) expenses in 3Q21 totaled R$63.1 million , an increase of R$28.0 million or 80% over the same period last year, mainly related to (i) an increase in employee expenses related to new hires to strengthen the finance, accounting, legal and compliance departments in preparation for becoming a publicly-listed company, (ii) an increase of R$ 4.3 million in provisions for profit sharing related to the Dextra acquisition and (iii) M&A expenses associated with legal and accounting due diligence.
Other operating expenses of R$25.3 million in the quarter were related to the impairment of intangible assets of R$21.8 million recognized in 3Q21, a non-cash and one-off effect, as CI&T decided to discontinue investments made by Dextra on certain in progress intangible assets related to digital platforms, and R$3.1 million attributable to the issuance of new shares in connection with the IPO.
Adjusted EBITDA totaled R$80.1 million , 23% higher than 3Q20, with an adjusted EBITDA margin of 21.3% compared to 26.9% in 3Q20. The adjusted EBITDA in the quarter reflects higher costs of services provided and SG&A expenses, as explained above, while 3Q20 recorded an outstanding result, benefited by the favorable foreign exchange rate. See "Reconciliation of Non-IFRS measures" for reconciliation of adjusted EBITDA to net profit.
Net financial expenses were R$22.4 million in 3Q21, compared to R$1.9 million in 3Q20, as the Company incurred R$650 million in new debt during the quarter to finance the Dextra acquisition, which will mature in 2026. Income tax expenses, including current and deferred tax, was R$18.9 million , a R$2.5 million increase or 15% compared to 3Q20.
Therefore, the net loss of R$2.2 million in the quarter was mainly due to the impairment of intangible assets of R$21.8 million , a non-cash effect. Adjusted net profit was R$24.5 million in the quarter, a reduction of R$15.3 million in relation to 3Q20, mainly due to higher financial expenses and an increase in depreciation and amortization, both associated with the Dextra acquisition. Net profit was adjusted for the impairment of intangible assets and consulting expenses associated with the corporate reorganization and the IPO, as well as M&A activities.
Cash Flow and Other Metrics
Cash generated from operating activities was R$90.2 million in the 9M21, compared to R$102.7 million in the 9M20.
Cash and cash equivalents totaled R$113.4 million at the end of 3Q21, while total debt (loans and borrowings) ended the quarter at R$782.1 million .
Net debt (defined as total debt (loans and borrowings) minus cash and cash equivalents) at the end of the quarter was R$668.7 million .
Considering the net proceeds from the IPO of US$156.7 million , net of underwriting discounts and commissions, the Company has a cash position higher than its outstanding debt as of November, 2021.
Total headcount at the end of 3Q21 was 5,398 CI&Ters, an addition of 1,364 people, including 1,167 from Dextra, when compared to 2Q21.
Business Outlook
We continue to see strong demand for digital transformation services worldwide. We expect our revenue growth to continue accelerating during 4Q21, based on our engagement with current clients and existing master services agreements, combined with our pipeline of potential new clients, as well as the contribution of net revenue from the consolidation of Dextra.
Therefore, we expect our net revenue in the fourth quarter of 2021 to be at least R$440.0 million , a 66% growth compared to our net revenue of R$ 265.4 million in the fourth quarter of 2020.
For the full year of 2021, we expect our pro forma net revenue to be at least R$1,600 million , a 38% growth compared to our pro forma net revenue of R$1,161 million in 2020.
These expectations are forward-looking statements. See "Cautionary Statement on Forward-Looking Statements" below.
Initial Public Offering (IPO)
On November 15, 2021 we concluded our IPO, consisting of 15 million class A common shares, of which 11.1 million shares were offered by CI&T and 3.9 million shares were offered by certain selling shareholders. The Company did not receive any proceeds from the sale of our common stock by the selling stockholders. We received net proceeds of US$156.7 million upon the closing of the IPO, after deducting the underwriting discounts and commissions. The shares began trading on the New York Stock Exchange (NYSE) on November 10, 2021 , under the ticker symbol “CINT”.
Conference Call Information
CI&T's senior management team will host a conference call to discuss the 3Q21 financial and operating results on December 2, 2021 at 8:00 a.m. Eastern Time / 10:00 a.m. BRT. A webcast of the conference call can be accessed at the Company’s Investor Relations website at https://investors.ciandt.com or by dialing +1 412 717-9627 (USA ) or +55 11 4090 1621 (Brazil ). A replay will be available on the Company’s Investor Relations website or by dialing +1-877-344-7529 (USA ) or +55 11 3193 1012 (Brazil ) and informing the conference ID 9949646#.
About CI&T
CI&T is a global digital specialist, a partner in end-to-end digital transformation for 50+ Large Enterprises & Fast Growth Clients . As digital natives, we bring a 26-year track record of accelerating business impact through complete and scalable digital solutions. With a global presence in 8 countries with a nearshore delivery model, CI&T is the Employer of Choice for more than 5,500 professionals in strategy, data science, design, and engineering, unlocking top-line growth, improving customer experience and driving operational efficiency.
Basis of accounting and functional currency
CI&T maintains its books and records in Brazilian reais , the presentation currency for its unaudited consolidated financial statements and the functional currency of our operations in Brazil . CI&T prepares its unaudited condensed consolidated interim financial statements in accordance with IFRS, as issued by the IASB, and International Financial Reporting Standard No 34—Interim Financial Reporting (“IAS 34”).
Non-IFRS Financial Measures
We regularly monitor certain financial and operating metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate financial projections and make strategic decisions. These non-IFRS financial measures include Adjusted Gross Profit, Adjusted Gross Profit Margin, EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Profit for the period, Adjusted Net Profit Margin for the period, Net Revenue at Constant Currency and Net Revenue Increase at Constant Currency, and should be considered in addition to results prepared in accordance with IFRS, but not as substitutes for IFRS results. In addition, our calculation of these non-IFRS financial measures may be different from the calculation used by other companies, and therefore comparability may be limited. These non-IFRS financial measures are provided as additional information to enhance investors’ overall understanding of the historical and current financial performance of our operations. See "Reconciliation of Non-IFRS measures, including Dextra as of August 10, 2021 " and "Reconciliation of Non-IFRS measures Pro Forma, including the Dextra acquisition as if the acquisition had occurred on January 1st, 2021 " for reconciliations of our Non-IFRS measures to the nearest IFRS measure.
We monitor our net revenue at constant currency and net revenue increase at constant currency. As the impact of foreign currency exchange rates is highly volatile and difficult to predict, we believe Net Revenue at Constant Currency and Net Revenue Increase at Constant Currency allow us to better understand the underlying business trends and performance of our ongoing operations on a period-over-period basis by eliminating the effect of fluctuations in the exchange rates we use in the translation of our Net revenue in foreign currencies into Brazilian reais . We calculate Net Revenue at Constant Currency and Net Revenue Increase at Constant Currency by translating Net revenue from entities reporting in foreign currencies into Brazilian reais using the comparable foreign currency exchange rates from the prior period.
Cautionary Statement on Forward–Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, which include but are not limited to: the statements under "Business outlook," including expectations relating to revenues and other financial or business metrics; statements regarding relationships with clients; and any other statements of expectation or belief. The words “believe,” “will,” “may,” “may have,” “would,” “estimate,” “continues,” “anticipates,” “intends,” “plans,” “expects,” “budget,” "scheduled,” “forecasts” and similar words are intended to identify estimates and forward looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements represent our management's beliefs and assumptions only as of the date of this press release. You should read this press release with the understanding that our actual future results may be materially different from what we expect. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied in this press release. Such risk factors include, but are not limited to, those related to: the current and future impact of the COVID-19 pandemic on our business and industry; the effects of competition on our business; uncertainty regarding the demand for and market utilization of our services; the ability to maintain or acquire new client relationships; general business and economic conditions; our ability to successfully integrate Dextra; and our ability to successfully execute our growth strategy and strategic plans. Additional information concerning these and other risks and uncertainties are contained in the "Risk Factors" section of CI&T's registration statement on Form F-1. Additional information will be made available in our annual reports on Form 20-F, and other filings and reports that CI&T may file from time to time with the SEC . Except as required by law, CI&T assumes no obligation, and does not intend to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Reconciliation of Non-IFRS measures, including Dextra as of August 10, 2021
The following table presents a reconciliation of our Non-IFRS measures, such as adjusted gross profit, EBITDA, adjusted EBITDA and adjusted net profit for the following periods:
Three months ended September
Nine months ended September 30 ,
2021
2020
2021
2020
(in thousands of Brazilian reais)
(in thousands of Brazilian reais)
Net Revenue
375,970
242,897
987,586
691,152
Gross Profit
129,124
92,582
346,600
256,580
Reconciliation of Adjusted Gross Profit
Depreciation and amortization (cost of services provided)
10,345
6,092
23,121
18,091
Stock Options
116
43
348
62
Adjusted Gross Profit
139,584
98,717
370,069
274,733
Adjusted Gross Profit Margin
37.1
%
40.6
%
37.5
%
39.7
%
Reconciliation of EBITDA
Net profit (loss) for the period
(2,208
)
39,538
82,129
98,253
Adjustments
Net finance costs
22,416
1,891
26,102
14,036
Income tax expense
18,857
16,386
57,515
46,287
Depreciation and amortization
14,083
7,559
30,102
22,452
EBITDA
53,147
65,374
195,848
181,028
EBITDA Margin
14.1
%
26.9
%
19.8
%
26.2
%
Reconciliation of Adjusted EBITDA
Net profit for the period
(2,208
)
39,538
82,129
98,253
Adjustments
Net finance costs
22,416
1,891
26,102
14,036
Income tax expense
18,857
16,386
57,515
46,287
Depreciation and amortization
14,083
7,559
30,102
22,452
Stock Options
193
213
693
733
Consulting Expenses
4,895
320
5,357
320
Government grants
(4
)
(673
)
(1,418
)
(1,318
)
Impairment
21,818
-
21,818
-
Adjusted EBITDA
80,048
65,234
222,298
180,763
Adjusted EBITDA Margin
21.3
%
26.9
%
22.5
%
26.2
%
Reconciliation of Adjusted Net Profit (loss)
Net profit (loss) for the period
(2,208
)
39,538
82,129
98,253
Adjustments
Impairment
21,818
-
21,818
-
Consulting Expenses
4,895
320
5,357
320
Adjusted Net profit (loss) for the period
24,504
39,858
109,304
98,573
Adjusted Net profit (loss) Margin for the period
6.5
%
16.4
%
11.1
%
14.3
%
Net Revenue in Constant Currency
380,707
242,832
-
-
In calculating Adjusted Gross Profit , we exclude cost components that are not related to the direct management of our services. For the periods herein, the adjustments applied were: (i) depreciation and amortization related to costs of services provided; and (ii) stock options compensation plan expenses.
In calculating Adjusted EBITDA , we exclude components that are not related to the direct management of our services. For the periods herein, the adjustments were: (i) consulting expenses related to corporate reorganization and secondary public offering costs, as well as mergers and acquisitions activity; (ii) government grants related to tax reimbursement in the Chinese subsidiary; (iii) stock options compensation plan expenses; and (iv) the impairment related to the discontinuation of certain investments made by Dextra on certain in progress intangible assets related to digital platforms following the closing of the Dextra acquisition. CI&T does not expect a continuing impact in its operations related to this impairment.
In calculating Adjusted Net Profit , we exclude cost components that are not related to the direct management of our services. For the periods herein, the adjustments applied were: (i) consulting expenses related to corporate reorganization and secondary public offering costs, as well as mergers and acquisitions activity; and (ii) the impairment related to the discontinuation of certain investments made by Dextra on certain in progress intangible assets related to digital platforms following the closing of the Dextra acquisition. CI&T does not expect a continuing impact in its operations related to this impairment.
We calculate Net Revenue at Constant Currency and Net Revenue growth at Constant Currency by translating Net revenue from entities reporting in foreign currencies into Brazilian reais using the comparable foreign currency exchange rates from the prior period.
Reconciliation of Non-IFRS measures Pro Forma, including the Dextra acquisition as if the acquisition had occurred on January 1, 2021 .(1)
(in thousands of Brazilian Reais - R$, unaudited)
Three months ended
September 2021
Nine months ended
September 2021
Pro forma Net Revenue
411,106
1,160,545
Pro forma Cost
(267,184
)
(744,193
)
Pro forma Gross Profit
143,922
416,352
Pro forma Selling, general, and administrative
(70,078
)
(193,364
)
Pro forma Impairment loss on trade receivables and contract assets
(1,662
)
(1,938
)
Pro forma Other income (expenses) net
(25,228
)
(24,745
)
Pro forma Operating profit before financial income
46,954
196,305
Pro forma Net finance costs
(28,491
)
(48,691
)
Pro forma Profit before Income tax
18,463
147,614
Pro forma Income Tax
(16,748
)
(58,840
)
Pro forma Net profit (loss) for the period
1,715
88,774
Reconciliation of Pro forma EBITDA
Pro forma Net profit (loss) for the period
1,715
88,774
Adjustments
Net finance costs
28,491
48,691
Income tax expense
16,748
58,840
Depreciation and amortization
18,967
53,527
Pro forma EBITDA
65,921
249,832
Pro forma EBITDA Margin
16.0
%
21.5
%
Reconciliation of Adjusted Pro forma EBITDA
Pro forma Net profit (loss) for the period
1,715
88,774
Adjustments
Net finance costs
28,491
48,691
Income tax expense
16,748
58,840
Depreciation and amortization
18,967
53,527
Stock Options
193
693
Consulting Expenses
3,825
6,617
Government grants
(4
)
(1,418
)
Impairment
21,818
21,818
Adjusted Pro forma EBITDA
91,753
277,542
Adjusted Pro forma EBITDA Margin
22.3
%
23.9
%
Reconciliation of Adjusted Pro forma Net Income
Pro forma Net profit (loss) for the period
1,715
88,774
Adjustments
Consulting Expenses
3,825
6,617
Impairment
21,818
21,818
Adjusted Pro forma Net profit (loss) for the period
27,358
117,209
Adjusted Pro forma Net profit (loss) Margin for the period
6.7
%
10.1
%
Please refer to the previous page for explanations of the reconciliation items for non-IFRS measures.
(1) The Pro Forma numbers for the three months ended September 30, 2021 (3Q21) are derived from the difference of the unaudited pro forma condensed statement of profit and loss for the nine months ended September 30, 2021 and the unaudited pro forma condensed statement of profit or loss for the six months ended June 30, 2021 .
CI&T Software S.A.
CI&T Inc was incorporated on June 7, 2021 , to become the holding entity of CI&T Software S.A. in connection with the IPO. Prior to the IPO, CI&T Inc had not commenced operations and had nominal assets and liabilities and no material contingent liabilities or commitments. Accordingly, the financial statements presented in this release are those of CI&T Software S.A. , the Company’s principal operating company and wholly-owned subsidiary.
Unaudited Condensed Consolidated Interim Financial Information
Statement of profit and loss, including Dextra as of August 10, 2021
(in thousands of Brazilian Reais - R$, unaudited)
Three months ended September 30 ,
Nine months ended September 30 ,
2021
2020
2021
2020
Net Revenue
375,970
242,897
987,586
691,152
Costs of services provided
(246,846
)
(150,315
)
(640,986
)
(434,572
)
Gross Profit
129,124
92,582
346,600
256,580
Selling expenses
(24,122
)
(14,769
)
(61,902
)
(39,278
)
General and administrative expenses
(38,966
)
(20,268
)
(93,056
)
(58,300
)
Research and technological innovation expenses
-
(690
)
(4
)
(2,652
)
Impairment loss on trade receivables and contract assets
(1,662
)
361
(2,030
)
(5
)
Other income (expenses) net
(25,309
)
599
(23,862
)
2,231
(90,059
)
(34,767
)
(180,854
)
(98,004
)
Operating profit before financial income
39,065
57,815
165,746
158,576
Finance income
17,591
14,045
43,421
32,851
Finance cost
(40,007
)
(15,936
)
(69,523
)
(46,887
)
Net finance costs
(22,416
)
(1,891
)
(26,102
)
(14,036
)
Profit before Income tax
16,649
55,924
139,644
144,540
Income tax expense
Current
(28,809
)
(14,178
)
(63,367
)
(42,478
)
Deferred
9,952
(2,208
)
5,852
(3,809
)
Net profit (loss) for the year
(2,208
)
39,538
82,129
98,253
Income attributable to:
Controlling shareholders
(2,208
)
39,538
82,129
98,253
Non-controlling interests
-
-
-
-
Net profit (loss) for the year
(2,208
)
39,538
82,129
98,253
Earnings per share
Earnings per share – basic (in R$)
(1.25
)
22.46
46.65
55.81
Earnings per share – diluted (in R$)
(1.25
)
22.46
46.65
55.14
CI&T Software S.A.
Unaudited Condensed consolidated statements of financial information as of September 30, 2021 and December 31, 2020
(in thousands of Brazilian Reais - R$, unaudited)
Assets
September 30, 2021
December 31, 2020
Cash and cash equivalents
113,417
162,827
Trade receivables
318,400
196,256
Contract assets
147,603
50,625
Recoverable taxes
7,933
1,016
Tax assets
2,651
2,117
Derivatives
2,842
8,837
Other assets
27,696
12,874
Total current assets
620,542
434,552
Recoverables taxes
3,086
3,099
Deferred tax
25,985
15,152
Judicial deposits
3,075
3,083
Other assets
2,303
2,494
34,449
23,828
Property, plant and equipment
55,720
38,771
Intangible assets
745,766
18,166
Right-of-use assets
75,138
69,765
876,625
126,702
Total non-current assets
911,073
150,530
Total assets
1,531,615
585,082
CI&T Software S.A.
Unaudited Condensed consolidated statements of financial information as of September 30, 2021 and December 31, 2020
(in thousands of Brazilian Reais - R$, unaudited)
Liabilities and equity
September 30, 2021
December 31, 2020
Suppliers
25,053
15,312
Loans and borrowings
138,694
75,377
Lease liabilities
20,952
14,569
Salaries and welfare charges
214,063
141,794
Accounts payable for business combination
97,701
-
Derivatives
3,295
5,392
Tax liabilities
13,671
6,078
Other taxes payable
5,874
3,279
Dividends and interest on equity payable
4,044
30,677
Contract liability
3,014
9,987
Indemnity
-
628
Other liabilities
14,855
7,899
Total current liabilities
541,216
310,992
Loans and borrowings
643,453
13,853
Lease liabilities
62,012
60,659
Provisions
507
161
Accounts payable for business combination
35,872
-
Other liabilities
694
957
Total non-current liabilities
742,538
75,630
Equity
Share capital
59,542
68,968
Capital reserves
9,007
6,764
Profit reserves
146,170
109,308
Other comprehensive income
33,142
13,420
Total equity
247,861
198,460
Total equity and liabilities
1,531,615
585,082
CI&T Software S.A.
Unaudited Condensed Consolidated statement of cash flows for the nine months ended September 2021 and 2020
(in thousands of Brazilian Reais - R$, unaudited)
Cash flows from operating activities
September 30, 2021
September 30, 2020
Net profit for the year
82,129
98,253
Adjustments for:
Depreciation and amortization
30,102
22,452
Gain/loss on the sale of property, plant and equipment and intangible assets
338
275
Interest, adjusted for inflation and exchange rate changes
25,998
9,161
Interest on lease
4,409
3,497
Unrealized gains on financial instruments
3,898
6,006
Income tax expense
57,515
46,287
Provision for (reversal of) impairment losses on trade receivables and contract assets
2,030
5
Write-off (impairment) of intangible assets
21,818
-
Provision for labor risks
346
13
Exchange rate changes on indemnity
-
(4,413
)
Share-based plan
694
733
Remeasurement of Right-of-Use assets
247
-
Others
(195
)
(119
)
Reduction (Increase) in operating assets and liabilities
Trade receivables
(87,669
)
(30,283
)
Contract assets
(67,530
)
(16,272
)
Other taxes recoverable
(13,260
)
(4,548
)
Current tax assets
(2
)
505
Judicial deposits
7
-
Suppliers
4,075
2,821
Salaries and welfare charges
43,788
38,889
Tax liabilities
(3,797
)
(7,940
)
Other taxes payable
1,448
2,295
Contract liability
(9,036
)
(15,479
)
Payment of share-based indemnity
(628
)
(38,386
)
Other receivables and payables, net
(6,538
)
(11,047
)
Cash generated from operating activities
90,187
102,705
Income tax paid
(44,468
)
(30,128
)
Interest paid on loans and borrowings
(2,296
)
(2,243
)
Interest paid on lease
(3,972
)
(3,496
)
Net cash from operating activities
39,451
66,838
Cash flows from investment activities
Acquisition of property and equipment and intangible assets
(22,112
)
(16,422
)
Business combinations
(650,000
)
-
Net cash (used in) investment activities
(672,112
)
(16,422
)
Cash flows from financing activities
Share-based plan contributions
989
1,751
Dividends paid
(71,039
)
(30,977
)
Interest on equity, paid
(713
)
(2,679
)
Payment of lease liabilities
(12,407
)
(12,070
)
Proceeds from loans and borrowings
740,596
144,270
Payment of loans and borrowings
(71,702
)
(69,242
)
Net cash from (used in) financing activities
585,724
31,053
Net increase in cash and cash equivalents
(46,937
)
81,469
Cash and cash equivalents as of January 1st
162,827
79,500
Exchange variation effect on cash and cash equivalents
(2,937
)
(7,565
)
Cash reduction due to spin-off effect
(7,752
)
-
Cash increase due to business combination
8,216
-
Cash and cash equivalents at the end of the period
113,417
153,404
CI&T Software S.A.
Unaudited Pro Forma Condensed Consolidated Financial Information
Pro forma statement of profit and loss for the nine months ended September 30, 2021
(in thousands of Brazilian Reais - R$, unaudited)
CI&T
Dextra
Transaction Accounting Adjustments
CI&T Pro Forma
Net revenue
987,586
172,959
1,160,545
Costs of services provided
(640,986
)
(103,207
)
(744,193
)
Gross profit
346,600
69,752
-
416,352
Selling expenses
(61,902
)
(1,021
)
-
(62,923
)
General and administrative expenses
(93,056
)
(20,010
)
(17,370
)
(130,436
)
Research and technological innovation expenses
(4
)
-
-
(4
)
Impairment loss on trade receivables and contract assets
(2,030
)
92
-
(1,938
)
Other income (expenses) net
(23,862
)
(884
)
-
(24,746
)
Operating profit before financial income
165,746
47,929
(17,370
)
196,305
Finance income
43,421
224
-
43,645
Finance cost
(69,523
)
(1,852
)
(20,961
)
(92,336
)
Net finance costs
(26,102
)
(1,628
)
(20,961
)
(48,691
)
Profit before Income tax
139,644
46,301
(38,331
)
147,614
Income tax
(57,515
)
(14,358
)
13,033
(58,840
)
Net profit for the period
82,129
31,943
(25,298
)
88,774
Earnings per share
Earnings per share – basic (in R$)
0.047
0.050
Earnings per share – diluted (in R$)
0.047
0.050
View source version on businesswire.com : https://www.businesswire.com/news/home/20211201006203/en/
Investor Relations Contact:
Eduardo Galvão
egalvao@ciandt.com
Media Relations Contact:
Zella Panossian
ciandt@illumepr.com
Source: CI&T Inc.