2Q06 Earnings Release
1H06 – Net Revenue Grows by 36% and “same store sales” by 11%
Rio de Janeiro, August 10, 2006 – Lojas Americanas S.A. (BOVESPA: LAME3-ON;LAME4-PN), presents its results for the second quarter and first half of 2006. Except where otherwise indicated, these results are presented on a consolidated basis in Reais, in accordance with Brazilian Corporate Legislation.
Lojas Americanas operates in the Brazilian retail sector. The Company has 210 stores (as of the publication date), in 19 states, plus the Federal District. It also operates in electronic commerce, represented by Americanas.com and Shoptime - which also offers the option of catalogue sales and purchases through the TV channel - and provides financial products through Americanas Taií.
Financial Highlights First Half Consolidated Results
Net Revenue (R$ million) Executive Summary (Compared with the First Half of 2005) 1,578.0 1700 1,163.0 9 Consolidated Net Revenue 1200 1,001.6 806,9 Growth of 35.7% and “same store sales” 681,6 700 630,5 growth of 10.9%.
200 9 Operating Expenses 1H01 1H02 1H03 1H04 1H05 1H06 22.1% of NR, a 0.1p.p. improvement.
Operating Expenses (% NR) 9 Operating Income R$ 116.1 million, an increase of 35.0%. 30 27.4 9 EBITDA 24.5 R$ 156.2 million, growth of 34.4%. 25 23.5 22.5 22.2 22.1 9 Americanas.com and Shoptime Increase of 96% in consolidated gross 20 revenue and 93% in consolidated 1H01 1H02 1H03 1H04 1H05 1H06 EBITDA.
Operating Income (R$ million)* 9 Gross Revenue per Associate Productivity growth of 22.3%. 120 116.1 86.0 90 80.5 Index 56.1 60 General Matters ...... 2 35.2 30 Panorama of Consolidated Results ...... 3 4.3 Consolidated Gross Revenue 3 0 Consolidated Net Revenue 3 1H01 1H02 1H03 1H04 1H05 1H06 Gross Revenue per Associate 4 Gross Margin 4 Operating Expenses 5 EBITDA (R$ million) Operating Income 5 180 156.2 EBITDA 6 150 Sales by Means of Payment 6 116.2 120 105.1 Financial Result 7 90 75.9 Net Income 7 Cash Allocation Priorities and Indebtedness 8 60 52.4 21.7 Americanas Taií ...... 9 30 Americanas.com and Shoptime...... 10 0 Investments and Expansion...... 11 1H01 1H02 1H03 1H04 1H05 1H06 Appendices ...... 14 2Q06 Results Conference Call……………...17
• * Operating Income before Financial Result and Equity Result • Graphs – “1H” refers to the first six months of each year.
LOJAS AMERICANAS 2nd Quarter 2006
General Matters
To Our Stockholders,
We present comments on the performance of Lojas Americanas S.A and its subsidiaries for the first half of 2006. Due to the mismatch of sales during the Easter period, which were concentrated in the second quarter in 2006 and in the first quarter in 2005, the results analysis will be based on the first-half consolidated figures.
In the first half of 2006 (1H06), the Company recorded a 35.8% growth in the consolidated gross revenue, compared to the same period of last year and the consolidated EBITDA grew by 34.4% to R$ 156.2 million, in the same period, representing 9.9% of net revenue.
Americanas.com and Shoptime’s consolidated gross revenue increased by 96%, compared to the first half of 2005, accompanied by consolidated EBITDA growth of 93%.
On July 14, 2006, the Company announced a proposal to incorporate all those shares issued by Americanas.com not already held by the parent company, thereby transforming the latter into a wholly- owned Lojas Americanas’ subsidiary. The operation, approved on August 7th by an Extraordinary Stockholders’ Meeting, is expected to create value for the companies by aligning the interests of their stockholders and allowing them to integrate their operational and administrative activities in the most effective way possible.
FAI (Financeira Americanas Itaú), or Americanas Taií, launched in May of this year its Private Label and Personal Loan cards, giving our customers another payment option, besides enabling them to have access to personal loans via the Americanas Taií card, whether they have bank accounts or not.
We inaugurated 18 new stores between January 2006 and the publication date of this report, while one store in São Paulo was deactivated at the end of April, bringing the total stores network to 210 units. In addition to the stores opened to date, a further 21 inaugurations are scheduled up to the end of the year. In view of the total number of new stores, together with those that are in the final stages of contracting and negotiation, we are confident that last year’s record of 37 openings will be surpassed. Details of the inauguration timetable can be found in the Investments and Expansion section of this report.
Evolution of Sales Area x Number of stores Position at June 30
343 207 303 263 248 164 235 235
127 111 Stores of Number
Sales Area (thousand m²) (thousand Area Sales 96 98
1H01 1H02 1H03 1H04 1H05 1H06
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LOJAS AMERICANAS 2nd Quarter 2006
Panorama of Consolidated Results
Consolidated Gross Revenue
In the first half of 2006, the Company recorded total consolidated gross revenue of R$ 2,074.5 million, against R$ 1,527.6 million in the same period of 2005, which represents a growth of 35.8%.
Gross Revenue (R$ million) First Half 2500 2,074.5 2000 CAGR=21.7% 1,527.6 1500 1,278.1 961.6 1000 775.8 832.7 500
0 1H01 1H02 1H03 1H04 1H05 1H06
Consolidated Net Revenue
In the first half of 2006, consolidated net revenue moved up by 35.7%, from R$ 1,163.0 million in the first half of 2005, to R$ 1,578.0 million.
• Net Revenue - Parent Company
Same stores sales (net revenue) climbed 10.9% year-on-year in the first half of 2006.
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LOJAS AMERICANAS 2nd Quarter 2006
Gross Revenue per Associate
Gross revenue per associate in the first half of 2006 increased by 22.3% over the first six months of 2005.
Gross Rev. per Associate (R$ thousand) First Half 240 192.7 200 CAGR = 21.6% 157.5 160 146.1 120 111.1 86.9 80 72.5 40 0 1H01 1H02 1H03 1H04 1H05 1H06
Gross Margin
The consolidated gross profit in the first half of 2006 reached R$ 464.1 million, 34.8% higher than the R$ 344.4 million recorded in the first half of the last year.
The 1H06 gross margin was 29.4% of net revenue, 0.2 p.p. down on the 1H05 figure of 29.6%. This was primarily due to increased sales of electronic goods, influenced by the World Cup, and the transition of Facilita’s operations to Americanas Taií.
Gross Margin (%NR) First Half 35
30.5 29.7 30.5 30 29.6 29.4 28.1
25 1H01 1H02 1H03 1H04 1H05 1H06
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LOJAS AMERICANAS 2nd Quarter 2006
Operating Expenses
Including Selling, General and Administrative Expenses, Depreciation and Amortization
In the first half of 2006 (1H06), operating expenses totaled R$ 349.0 million, or 22.1% of net revenue, 0.1 p.p. less than the first half of 2005 (1H05) ratio. Such reduction demonstrates our constant pursuit of improvements in operational processes. The opening of 44 stores in the last four quarters and the 96% consolidated gross revenue growth of Americanas.com and Shoptime in the 1H06 should be taken into account in this analisis.
Operating Expenses (%NR) First Half
30 27.4 24.5 23.5 25 22.5 22.2 22.1
20 207 164 stores 127 stores 15 111 98 stores 96 stores stores stores 10 1H01 1H02 1H03 1H04 1H05 1H06
Operating Income
In the first half of 2006, operating income before financial result and equity result increased by 35.0%, from R$ 86.0 million in the 1H05, to R$ 116.1 million.
Operating Income (R$ million) First Half 116.1 120 CAGR = 93.3% 86.0 90 80.5 56.1 60 35.2 30 4.3 0 1H01 1H02 1H03 1H04 1H05 1H06
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LOJAS AMERICANAS 2nd Quarter 2006
EBITDA
In the first half of 2006, EBITDA totaled R$ 156.2 million, 34.4% up year-on-year.
The 1H06 EBITDA margin stood at 9.9% of net revenue and remained stable when compared to 1H05 ratio. It is worth noting that 1H06 EBITDA includes two new businesses – Shoptime and the new financing company Americanas Taií.
EBITDA (R$ million and %NR) First Half 180 30% 156,2 150 25% CAGR = 48.4% 120 116,2 20% 105,1 90 75,9 15%
60 52,4 10% 9,4% 10,5% 10,0% 9,9% 7,7% 30 21,73,4% 5%
0 0% 1H01 1H02 1H03 1H04 1H05 1H06
Sales by Means of Payment
The table below shows a breakdown of sales by means of payment (parent company and consolidated) for the first 6 months of 2005 and 2006:
Sales by Means of Payment
Parent Company Consolidated Means of Payment 1H06 1H05 VAR. 1H06 1H05 VAR. Cash 56% 57% - 1 p.p. 46% 49% - 3 p.p. Credit Card 42% 41% + 1 p.p. 53% 49% + 4 p.p. Check 2% 2% - 1% 2% -1 p.p.
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LOJAS AMERICANAS 2nd Quarter 2006
Financial Result
The net financial expense in the first half of 2006 was of R$ 100.8 million, versus R$ 76.0 million in the same period in 2005.
The negative variation of R$ 24.8 million in the 1H06 consolidated financial result, compared to the same half of the previous year, was caused by the increase in taxes and contributions on financial operations, higher expenses from interest on loans and the restatement of tax liabilities, which charging legality is being challenged in the courts. Financial expenses were also impacted by the acquisition of Shoptime, a factor which did not apply in the 1H05.
The Company remains committed to a conservative cash investment policy, making use of US dollar hedge positions to protect it from the impact of exchange variations on its financial liabilities and total cash position.
Net Income
The consolidated net income totaled R$ 14.2 million in the first half of 2006 (1H06), versus R$ 115.0 million in the same period of 2005. However, it is important to remember that the 1H05 figure considered a non-operating income of R$ 200 million in capital gains from the agreement with Banco Itaú to set up Americanas Taií.
Net Income (R$ million) First Half 115.0 120
80
40 31.5 21.8 14.2 11.1 2.1 0 1H01 1H02 1H03 1H04 1H05 1H06
If we disregard this non-operating result and income tax and social contribution in both periods, we reach an adjusted net income of R$ 12.9 million in the 1H06 and R$ 7.4 million in the 1H05, a growth of 74.3%.
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LOJAS AMERICANAS 2nd Quarter 2006
Cash Allocation Priorities and Indebtedness
The Company prioritizes the allocation of its cash generation to investments that generate the best returns for its stockholders. Therefore, the following is a list of the main actions done between June 30, 2005 and June 30, 2006:
• Shoptime acquisition in August, 2005 for R$ 117.8 million and the absorption of its debt; • investments in the Company´s expansion, totaling R$ 149.7 million; • payment of gross dividends of R$ 120.0 million, with the first installment (50%) in October/05 and the remainder in April/06; • the buy-back of Company shares totaling R$ 25.9 million; • the buy-back of Americanas.com shares totaling R$ 5.1 million.
In addition, the Company invested R$ 40 million in April, 2005 to set up Financeira Americanas Itaú, known as Americanas Taií.
On June 30, 2006, Lojas Americanas’ consolidated short and long-term debt totaled R$ 1,187.7 million, remaining at the same level as the figure on June 30, 2005. If we subtract the cash position (cash + money market investments + accounts receivable from credit cards) of R$ 941.0 million, we arrive at a net debt of R$ 246.7 million.
Consolidated Indebtedness R$ million 06/30/2006 06/30/2005 Short-term loans and financing 410.3 342.8 Short-term debentures 16.5 16.0 Short-term indebtedness 426.8 358.8 Long-term loans and financing 561.0 629.9 Long-term debentures 199.9 199.9 Long-term indebtedness 760.9 829.8 Gross indebtedness 1,187.7 1,188.6
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LOJAS AMERICANAS 2nd Quarter 2006
Americanas Taií
In May, 2006, Financeira Americanas Itaú (FAI), better known as Americanas Taií, the result of a partnership between Lojas Americanas and Banco Itaú, launched its Private Label card, a credit card which carries no annual charges or registration fee to our customers. Customers can use it to finance their purchases immediately upon issue.
Also in May, FAI launched its Personal Loan card, which gives customers with or without bank accounts access to personal loans, in up to 12 installments. Withdrawals can be made from Banco Itaú’s ATMs using the Americanas Taií card.
In less than three months after the first card was issued, we have already reached the mark of 135,000 Private Label cards and 60,000 Personal Loan cards, exceeding our initial expectations. We are now very confident of achieving one million Private Label cards within 12 months.
Private Label card payments can be effected in up to 40 days interest-free, or in up to 12 fixed installments with interest. Sales through this mean of payment already account for 2.5% of total parent company sales. Since the end of July, customers have also been able to use this card to finance purchases from Americanas.com, making it the first Private Label card on the Internet.
In July/06, in line with our business plan, we launched the Americanas Itaú (Mastercard/Visa) credit card, and in the second half of 2006 we will release the international version of this cobranded Americanas Itaú card.
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LOJAS AMERICANAS 2nd Quarter 2006
Americanas.com and Shoptime
Americanas.com, Latin America’s leading e-commerce company in terms of sales volume and shopping destination, became a wholly-owned Lojas Americanas’ subsidiary following the approval of the incorporation of its remaining shares by the Extraordinary Stockholders Meeting of August 7, 2006.
The figures for the first half of 2006 reflect the consolidated results of Americanas.com, including those of Shoptime.
Americanas.com recorded 1H06 consolidated gross revenue of R$ 641.8 million, 96% up year-on-year.
In Shoptime’s first month under Americanas.com management (September/05), certain operational and financial synergies were captured. When these were analyzed using the discounted cash flow method (DCF), they amounted to some R$ 49 million, as we stated in our 3Q05 Earnings Release. At the close of June/06, after 10 months during which we implemented our best operational and commercial practices in Shoptime, the captured synergies, updated according to DCF, totaled R$ 160 million. This value is 227% higher than our initial estimates and it is a clear proof of our ability to overcome our own challenges.
We invested R$ 117.8 million in the acquisition of Shoptime, equivalent to 3.5 times its projected EBITDA for 2006. This ratio confirms our capacity to manage new businesses and our commitment to creating value for our stockholders.
As a result of the captured synergies, Americanas.com/Shoptime posted year-on-year EBITDA growth of 93% in the first half (1H06 vs. 1H05), with an EBITDA margin of close to 13% of net revenue, underlining Americanas.com/Shoptime’s determination to increase its sales while maintaining the highest standards of operational efficiency.
Americanas.com and Shoptime operate through a number of sales channels - two Internet sites (www.americanas.com.br and www.shoptime.com.br), telesales, a TV channel and a printed catalogue – jointly offering over 200,000 items in various product categories to six million customers.
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LOJAS AMERICANAS 2nd Quarter 2006
Investments and Expansion
Lojas Americanas’ expansion project is concentrated on five main fronts: Traditional stores, Express stores, Americanas.com, Shoptime and Americanas Taií. Our aim is to create value for our stockholders, in accordance with our motto “We Always Want More”.
Over the last four quarters, from July/05 to June/06, we inaugurated 44 new stores, a proof of the Company’s commitment to growth.
In the second quarter of 2006, we opened eight stores, seven traditional and one express, and deactivated a store in the Itaim Bibi district of São Paulo. After the end of the quarter, we inaugurated another three stores (one traditional and two express).
Stores inaugurated in the 1st Half 2006: RETAIL FLOOR STORES INAUGURATION DATE SPACE
Express Shopping Boa Vista – Recife – PE 436 m² 02/09/2006
Express Rua Augusta – São Paulo – SP 448 m² 03/08/2006
Express Rua São Clemente – Rio de Janeiro – RJ 573 m² 03/09/2006
Natal Shopping – Natal – RN 1,242 m² 03/10/2006
Shopping do Vale do Aço – Ipatinga – MG 1,212 m² 03/23/2006
Viashopping Barreiro – Barreiro – MG 893 m² 03/23/2006
Shopping Total Curitiba – Curitiba – PR 1,027 m² 03/23/2006
Suzano Shopping Center – Suzano - SP 893 m² 04/05/2006
Shopping Capital – São Paulo - SP 1,103 m² 05/11/2006
Shopping Royal Plaza - Londrina - PR 977 m² 05/25/2006 Shopping Conquista Sul – Vitória da Conquista - BA 1,016 m² 06/07/2006 Express Av. Paulista 332 – São Paulo - SP 566 m² 06/07/2006 Shopping Avenida Center – Dourados - MS 1,240 m² 06/08/2006 Avenida Marechal Floriano – Curitiba - PR 1,601 m² 06/14/2006
Shopping Center 3 Américas – Cuiabá - MT 1,061 m² 06/29/2006
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LOJAS AMERICANAS 2nd Quarter 2006
Stores inaugurated after the closing of 2ndquarter 2006: RETAIL FLOOR STORES INAUGURATION DATE SPACE
Maracanaú Shopping – Maracanaú - CE 1,127 m² 07/07/2006 Express Av. Liberdade – São Paulo - SP 674 m² 07/27/2006 Express Rua do Aroche – São Paulo - SP 318 m² 08/10/2006
Store deactivated in the 1st Half 2006: RETAIL FLOOR STORE CLOSURE DATE SPACE
Rua João Cachoeira – Itaim Bibi – São Paulo – SP 1,406 m² 04/27/2006
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LOJAS AMERICANAS 2nd Quarter 2006
The table below shows the 21 stores already contracted and which inauguration is scheduled for 2006:
SCHEDULED INAUGURATION STORES RETAIL FLOOR SPACE DATE Express Piratininga – Niterói – RJ 511 m² August 2006 Feira de Santana– Feira de Santana - BA 1,341 m² August 2006 Criciúma Shopping Center – Criciúma - SC 1,089 m² September 2006
Express Visconde de Pirajá 309 – Rio de Janeiro - RJ 404 m² October 2006 Farol Shopping Center – Tubarão - SC 1,393 m² October 2006 Praça Shopping – S.J.do Rio Preto - SP 756 m² October 2006 Mauá Plaza SHC – Mauá - SP 1,245 m² October 2006 Pátio Água Fria – Fortaleza - CE 1,230 m² October 2006 Taubaté Shopping Center – Taubaté - SP 1,166 m² November 2006 Shopping Center Jaracati – São Luís - MA 1,462 m² November 2006 Center Plaza Shopping – Limeira - SP 1,200 m² November 2006 Cariri Shopping Center – Juazeiro do Norte - CE 1,100 m² November 2006 Express Catete – Rio de Janeiro - RJ 500 m² November 2006 São Luís Shopping Center – São Luís - MA 1,205 m² November 2006 Terra Parque Shopping – Divinópolis - MG 1,178 m² November 2006 Shopping Center Sta Úrsula – Ribeirão Preto - SP 750 m² November 2006 São José do Rio Preto – S.J.do Rio Preto - SP 1,871 m² November 2006 Express Galeria Shopping – Campinas - SP 616 m² November 2006 Plaza Casa Forte – Recife - PE 1,002 m² November 2006 Três Rios – Três Rios - RJ 1,000 m² November 2006 IT Center – Belém - PA 1,178 m² November 2006
Consolidated Investments We invested R$ 62.2 million in the first half of 2006, on a consolidated basis. Up to the end of this year, a total amount of around R$158 million is foreseen in the investment budget, as approved in the Ordinary Shareholders Meeting.
Consolidated Investments 1st Half/2006 1st Half/2005 Refurbishment and inaugurations R$ 32.8 million R$ 25.0 million Technological upgrading R$ 17.6 million R$ 10.5 million Distribution and logistics R$ 7.5 million R$ 2.1 million Other projects R$ 4.3 million R$ 4.0 million
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LOJAS AMERICANAS 2nd Quarter 2006
Appendices
LOJAS AMERICANAS S.A. CONSOLIDATED INCOME STATEMENT SEMESTER ENDED JUNE 30 In million of reais, except net income per one thousand shares
Semester 1S06 1S05 Var. (%)
GROSS SALES AND SERVICES REVENUE 2,074.5 1,527.6 35.8% Taxes, returns and discounts on sales (496.5) (364.6) 36.2%
NET SALES AND SERVICE REVENUE 1,578.0 1,163.0 35.7% Cost of goods and services sold (1,113.9) (818.6) 36.1%
GROSS PROFIT 464.1 344.4 34.8% Gross Margin 29.4% 29.6% -0.2pp
OPERATING REVENUE (EXPENSES) Sales (275.0) (195.2) 40.9% General and administrative (33.9) (33.0) 2.7% Depreciation/Amortization (40.1) (30.2) 32.8% Others 1.0 (0,0) - (348.0) (258.4) 34.7% Operating Expenses (% of Net Revenue) 22.1% 22.2% -0.1pp
OPERATING INCOME 116.1 86.0 35.0% Operating Margin 7.4% 7.4% -
Financial Result - Net (100.8) (76.0) 32.6% Non-Operating Income (Expenses) (10.8) 105.8 - Participations (2.4) (2.6) -7.7% Income Tax and Social Contrib. 12.1 1.8 572.2%
NET INCOME FOR THE SEMESTER 14.2 115.0 -87.7% Net Margin 0.9% 9.9% -9.0pp ADJUSTED NET INCOME w/o NOP & IT/SC 12.9 7.4 74.3% Adjusted Net Margin 0.8% 0.6% +0.2pp
EBITDA 156.2 116.2 34.4% EBITDA Margin 9.9% 10.0% -0.1pp
Total shares (million) 69,600 67.966 2.4% Shares in treasury (million) 1,951 1.517 28.6% Total outstanding shares (million) 67,649 66.449 1.8%
Net income per one thousand shares at the end of the semester R$ 0.21 R$ 1.73
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LOJAS AMERICANAS 2nd Quarter 2006
LOJAS AMERICANAS S.A. CONSOLIDATED INCOME STATEMENT QUARTERS ENDED JUNE 30 In million of reais, except net income per one thousand shares
Quarter 2Q06 2Q05 Var. (%)
GROSS SALES AND SERVICES REVENUE 1,103.6 712.7 54.8% Taxes, returns and discounts on sales (260.4) (170.3) 52.9%
NET SALES AND SERVICE REVENUE 843.2 542.4 55.5% Cost of goods and services sold (603.4) (380.0) 58.8%
GROSS PROFIT 239.8 162.4 47.7% Gross Margin 28.4% 29.9% -1.5pp
OPERATING REVENUE (EXPENSES) Sales (143.9) (96.0) 49.9% General and administrative (15,9) (16.9) -5.9% Depreciation/Amortization (20.4) (15.2) 34.2% Others 1.0 - - (179.2) (128.1) 39.9% Operating Expenses (% of Net Revenue) 21.3% 23.6% -2.3pp
OPERATING INCOME 60.6 34.3 76.7% Operating Margin 7.2% 6.3% +0.9pp
Financial Result - Net (51.3) (41.2) 24.5% Non-Operating Income (Expenses) (12.6) 105.9 -111.9% Participations (1.0) (1.9) -47.4% Income Tax and Social Contrib. 15.1 7.1 112.7%
NET INCOME FOR THE QUARTER 10.8 104.2 -89.6% Net Margin 1.3% 19.2% -17.9pp
EBITDA 81.0 49.5 63.6% EBITDA Margin 9.6% 9.1% +0.5pp
Total shares (million) 69,600 67,966 2.4% Shares in treasury (million) 1,951 1,517 28.6% Total outstanding shares (million) 67,649 66,449 1.8%
Net income per one thousand shares at the end of the quarter R$ 0.16 R$ 1.57
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LOJAS AMERICANAS 2nd Quarter 2006
LOJAS AMERICANAS S.A BALANCE SHEETS AT JUNE 30 - CONDOLIDATED In thousand of Reais jun/06 jun/05 ASSETS 2,469,771 2,346,427 CURRENT ASSETS Cash and banks 125,805 23,696 Money market investments 727,424 738,956 Accounts receivable - clients 108,053 461,283 Inventories 538,525 447,291 Recoverable taxes 77,385 75,732 Deferred income tax and social contribution 19,968 10,925 Prepaid expenses 49,579 11,778 Other accounts receivable 15,481 21,925 1,662,220 1,791,586 LONG-TERM ASSETS Money market investments 15,541 39,324 Accounts receivable from stockholders - Share option plan 57,552 29,907 Deferred income tax and social contribution 180,307 145,225 Judicial deposits 45,077 44,659 Prepaid expenses 3,536 1,571 302,013 260,686 PERMANENT Investments 166,437 36,572 Property and equipment 219,114 172,591 Deferred charges 119,987 84,992 505,538 294,155 LIABILITIES AND STOCKHOLDERS' EQUITY 2,469,771 2,346,427 CURRENT LIABILITIES Suppliers 530,907 448,537 Loans and financing 410,301 342,784 Debentures 16,536 15,964 Salaries and social security contributions 22,791 22,798 Taxes and contributions 63,670 40,471 Third party's fees 6,511 4,882 Provision for contingencies 10,152 10,064 Other accounts payable 58,925 63,425 1,119,793 948,925 LONG-TERM LIABILITIES Loans and financing 560,958 629,914 Debentures 199,934 199,934 Taxes and contributions 262,884 210,844 Provision for contingencies 34,535 43,477 1,058,311 1,084,169
MINORITY INTEREST 18,071 10,821
STOCKHOLDERS' EQUITY Capital 222,838 152,908 Revenue reserves 103,463 75,636 Treasury stock (66,902) (40,994) Net Income for the period 14,197 114,962 273,596 302,512
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LOJAS AMERICANAS 2nd Quarter 2006
Lojas Americanas - number of stores, retail floor space and number of associates
No. of Stores Retail Floor Space No. of Associates 06/30/05 164 303,340 m² 8,538 Opened 36 Closed - 03/31/06 200 335,978 m² 9,383 Opened 8 Closed 1 06/30/06 207 343,357 m² 9,536
2Q06 Results Conference Calls
Lojas Americanas will conduct the 2Q06 Results Conference Calls on August 11, 2006 (Friday).
English 11:30 a.m. (US EST); 12:30 p.m. (Brasilia Time) All Participants Phone: +1 (973) 935-8893 / Conference Call ID: 7715040 Replay for a week: +1 (973) 341-3080 / Code: 7715040
Portuguese 10:00 a.m. (US EST); 11:00 a.m. (Brasilia Time) All Participants Phone: +55 (11) 4688-6301 / Conference Call ID: Lojas Americanas Replay for a week: +55 (11) 4688-6225 / Code: 576
Statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Lojas Americanas, eventually expressed in this release, are merely projections and, as such, are based exclusively on the expectations of Lojas Americanas’ management concerning the future of the business and its continued access to capital to fund the Company’s business plan. Such statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors and are, therefore, subject to change without prior notice.
MSCI Logo: The use of Morgan Stanley Capital International Inc.´s ("MSCI") trademarks and index names does not constitute a sponsorship, endorsement or promotion by MSCI, any of its affiliates, any of its information providers or any other third party involved in, or related to, compiling, computing or creating any MSCI index. The MSCI indices are trademarks of MSCI or its affiliates and have been licensed for use for certain purposes by Lojas Americanas S.A.
Investor Relations: Murilo Corrêa – Investor Relations Manager Telephone: (+55 21) 2206-6505 FAX: (+55 21) 2206-6898 E-mail: [email protected]
Internet address: http://ir.lasa.com.br
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