Springs Global Participações S.A. reported consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company reported net revenues of BRL 573.3 million compared to BRL 573.8 million a year ago. Income from operations was BRL 51.3 million compared to BRL 26.6 million a year ago. Profit before taxes was BRL 3.2 million compared to loss before taxes of BRL 29.3 million a year ago. Net income was BRL 14.9 million compared to BRL 25.6 million a year ago. Net cash provided by operating activities was BRL 64.6 million compared to BRL 98.5 million a year ago. Acquisition of property, plant and equipment was BRL 20.2 million compared to BRL 5.7 million a year ago. Acquisition of intangible assets was BRL 3.1 million. EBITDA was BRL 69.8 million compared to BRL 65.0 million a year ago. Adjusted EBITDA was BRL 69.8 million compared to BRL 57.8 million a year ago. Adjusted income from operations was BRL 51.3 million compared to BRL 38.5 million a year ago.

For the year, the company reported net revenues of BRL 2,198.7 million compared to BRL 2,311.3 million a year ago. Income from operations was BRL 180.9 million compared to BRL 168.9 million a year ago. Loss before taxes was BRL 4.3 million compared to BRL 64.6 million a year ago. Net income was BRL 21.6 million compared to net loss of BRL 6.3 million a year ago. Net cash provided by operating activities was BRL 185.5 million compared to BRL 140.8 million a year ago. Acquisition of property, plant and equipment was BRL 15.9 million compared to BRL 17.4 million a year ago. Acquisition of intangible assets was BRL 3.1 million compared to BRL 1.3 million a year ago. EBITDA was BRL 254.6 million compared to BRL 265.7 million a year ago. Adjusted EBITDA was BRL 254.6 million compared to BRL 258.5 million a year ago. Adjusted income from operations was BRL 180.9 million compared to BRL 180.9 million a year ago. The consolidated net revenue negatively impacted by lower sales volume and by lower average price, in Brazilian Reais, for utility bedding products. Net debt as at December 31, 2017 was BRL 821.2 million compared to BRL 858.6 million a year ago.

The company provided earnings guidance for the year 2018. For the year, the company expects total net revenue of BRL 2,120 million to BRL 2,500 million, EBIT of BRL 200 million to BRL 240 million, EBITDA of BRL 280 million to BRL 320 million and capex of BRL 60 million to BRL 70 million.