Atento Reports Fiscal 2021 First Quarter Results

Atento Reports Fiscal 2021 First Quarter Results

  • Commercial wins, revenue growth and efficiencies led to record positive operating cash flow;
    Revenues in hard currencies already at 25% of total, on strong US growth;
    On track to delivering guidance for FY 2021

NEW YORK, May 05, 2021 – Atento S.A. (NYSE: ATTO) (“Atento” or the “Company”), the largest provider of customer relationship management and business-process outsourcing services in Latin America, and among the top five providers globally, today announced its first quarter operating and financial results for the period ending March 31, 2021. All comparisons in this announcement are year-over-year (YoY) and in constant-currency (CCY), unless otherwise noted.

A strong start for 2021

• Q1 revenues grew 8.0% on a CCY basis, with consistent growth in Multisector across all regions, driven by Next Generation
Services
• Multisector revenues increased 11.0%, reaching 68.1% of total revenues, 0.7pp higher YoY
• TEF resuming growth following new program wins
• US revenues increased 52.0%, with EBITDA increasing 91% YoY
• Consolidated EBITDA expanded 6.7% to $39.1 million YoY, with corresponding margin of 10.5%, in line with management
expectations and reflecting historical seasonality for Q1
• Continued solid improvement in Cash Flow: operating cashflow +$11.9M vs Q1 2020, totaling $5.5M in Q1 2021, the first
positive number for a first quarter since 2017

Building a track record in operating efficiency

• First stage implemented in 2019 and 2020 focused on structural opex, with $60 million in annualized savings carried to
2021
• Second stage to focus on contract profitability, with annualized savings expected to reach additional $25 million

Debt refinancing resolved uncertainty related to capital structure

• Successfully concluded debt refinancing in Q1 2021, extending average debt life to 4.3 years
• Healthy balance sheet with solid cash position of $176.1 million
• Net debt reduction of 6.9% versus Q1 2020, with leverage at 3.3x
• USD debt hedged for Principal and Coupons

Avenues for Growth

• Remain focused on expanding NGS for multisector and US business, aiming at increasing revenue and EBITDA in hard currencies.

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