Light (LIGT3) Q3 2024 earnings summary

Executive summary

• Judicial Reorganization advanced with payment options for creditors completed, strong demand for convertible debentures exceeding plan limits by 50%, and approval by 99.44% of bondholders; ratified by courts in Brazil, UK, and US.

• Robust consolidated cash position of R$2.4 billion at September 2024, up R$302.4 million from December 2023.

• Positive operational transformation with improved collection rates, cash management, and customer orientation.

• Interim financials prepared under going concern assumption despite high indebtedness and negative working capital.

• Significant operational and financial improvements reported across all group companies.

Financial highlights

• Consolidated net income for 3Q24 was R$157.5 million, reversing a loss in 3Q23; 9M24 net income was R$255.2 million, compared to a loss of R$5,672.2 million in 9M23.

• Consolidated cash position was R$2.4 billion as of Sep/24, up R$302 million from Dec/23.

• Adjusted consolidated EBITDA rose 15.5% year-over-year to R$597.7 million in 3Q24 and 26.9% to R$2,149.9 million in 9M24.

• Collection rate reached 98.8% for the 12 months ending September, up 0.8 percentage points year-over-year.

• Financial expenses decreased 64.6% year-over-year in 3Q24, mainly due to reversal of interest on paid creditors and favorable exchange rate effects.

Outlook and guidance

• New financial structure and reprofiled debt expected to reduce short-term cash flow pressure, extend payment terms, and lower financial costs.

• Results of restructuring and operational improvements to be reflected from Q4 2024 onwards.

• Business continuity is contingent on successful implementation of the debt restructuring plan, including capital increases and issuance of new debt instruments.

• Management is pursuing regulatory extensions for key electricity concessions and engaging with authorities for long-term stability.

• Ongoing focus on loss reduction, default management, and preparation for high-demand periods.