Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Vamos Locacao De Caminhoes Maquinas E Equipamentos SA (BSP:VAMO3) achieved a 15% increase in net revenue from leasing, reaching $960 million in the quarter.
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The company reported an 82% growth in used vehicle sales, achieving a record volume of $290 million.
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Gross fleet utilization rate improved for the third consecutive quarter, reaching 85%.
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The company successfully raised $1.9 million in new debt at a competitive cost, enhancing its capital structure.
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Vamos Locacao De Caminhoes Maquinas E Equipamentos SA (BSP:VAMO3) maintained a solid liquidity position, with cash and financial investments covering debt maturities through mid-2027.
Negative Points
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Net income declined due to higher financial expenses and a higher effective tax rate compared to the previous year.
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The EBITDA margin contracted due to the temporary effect of used assets still being depreciated but not generating lease revenue.
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The sugar and ethanol industry demanded less volume of investments this year, impacting revenue.
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The company experienced a decrease in gross margin on used vehicle sales, which was slightly below the 10% target.
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Higher depreciation driven by fleet expansion and a greater share of idle assets offset gains, impacting net income.
Q & A Highlights
Q: Could you provide more details on the contract extensions and the used vehicle margins? A: Gustavo Kuo, CEO, explained that contract extensions are progressing well, with a significant portion of contracts being renewed with the same assets, which is beneficial for both Vamos and its clients. Regarding used vehicle margins, the company is comfortable with a 7% margin, despite initially projecting 10%, due to strategic sales acceleration and market conditions.
Q: What is the mix of contract extensions happening before maturity versus at maturity? A: Gustavo Kuo, CEO, clarified that the reported numbers are for contracts maturing in 2025 and being extended for approximately 30 months. While there are negotiations for extensions before maturity, the focus is on those maturing this year.
Q: Can you elaborate on the impact of asset prices and depreciation on your financials? A: Gustavo Kuo, CEO, noted that OEMs are pushing for price increases due to exchange rates and inflation, which could lead to stable or rising used vehicle prices. Depreciation is expected to gradually normalize as the company renews assets, with some accelerated depreciation due to contract specifics.