Netshoes (Cayman) Ltd.

CIK:0001562767|SEC Filings

Consolidated Statements of Profit or Loss R$ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) $ / shares	Dec. 31, 2018 BRL (R$) R$ / shares	Dec. 31, 2017 BRL (R$) R$ / shares	Dec. 31, 2016 BRL (R$) R$ / shares
Profit or loss [abstract]
Revenue	$ 466,621	R$ 1,808,064	R$ 1,835,212	R$ 1,685,151
Cost of sales	(358,687)	(1,389,842)	(1,247,014)	(1,144,231)
Gross profit	107,934	418,222	588,198	540,920
Operating expenses:
Selling and marketing expenses	(123,931)	(480,206)	(495,190)	(431,065)
General and administrative expenses	(49,472)	(191,695)	(143,253)	(162,338)
Other operating expenses, net	(2,403)	(9,312)	(3,933)	(5,251)
Total operating expenses	(175,806)	(681,213)	(642,376)	(598,654)
Operating loss	(67,872)	(262,991)	(54,178)	(57,734)
Financial income	3,878	15,026	28,996	28,285
Financial expenses	(21,478)	(83,223)	(129,040)	(104,795)
Monetary position (loss) gain, net	2,476	9,595
Loss before income tax	(82,996)	(321,593)	(154,222)	(134,244)
Income tax expense	(52)	(202)
Net loss from continuing operations	(83,048)	(321,795)	(154,222)	(134,244)
Net loss from discontinued operations	(2,730)	(10,579)	(16,123)	(17,652)
Net loss	(85,778)	(332,374)	(170,345)	(151,896)
Net loss attributable to:
Owners of the Parent from continuing operations	(82,886)	(321,166)	(153,623)	(133,422)
Owners of the Parent from discontinued operations	(2,730)	(10,579)	(16,123)	(17,652)
Non-controlling interests	$ (159)	R$ (629)	R$ (599)	R$ (822)
Loss per share attributable to owners of the Parent
Basic and diluted \| (per share)	$ (2.76)	R$ (10.68)	R$ (5.95)	R$ (7.05)
Loss from continuing operations per share attributable to owners of the Parent Basic and diluted \| (per share)	$ (2.67)	R$ (10.34)	R$ (5.39)	R$ (6.22)

Consolidated Statements of Cash Flows R$ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2018 BRL (R$)	Dec. 31, 2017 BRL (R$)	Dec. 31, 2016 BRL (R$)
Cash flows from continuing operating activities:
Net loss from continuing operations	$ (83,048)	R$ (321,795)	R$ (154,222)	R$ (134,244)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Allowance for doubtful accounts	3,359	13,014	25,443	1,167
Depreciation and amortization	14,974	58,022	31,487	30,776
Loss on disposal of property and equipment, and intangible assets	973	3,770	179	901
Impairment of property and equipment, and intangible assets	220	851
Impairment of recoverable taxes (note 3)	1,246	4,828
Share-based payment	2,045	7,923	(13,860)	930
Provision for labor, civil and tax risks	2,786	10,795	10,111	1,247
Interest expense, net	16,018	62,066	110,568	90,605
Monetary position (loss) gain, net	1,401	5,428
Provision for inventory losses	18,717	72,526	4,904	949
Provision for expected losses, Other non-current assets (note 19)	3,413	13,225
Other	52	205	179	(9)
(Increase) decrease in:
Restricted cash	4,233	16,401	2,549	(8)
Derivative financial instruments	0	0		148
Trade accounts receivable	(17,366)	(67,290)	75,095	67,767
Inventories	21,687	84,034	(108,386)	(79,904)
Recoverable taxes	8,836	34,236	(53,172)	(57,610)
Judicial deposits	(3,304)	(12,803)	(35,097)	(39,940)
Other assets	1,599	6,196	9,525	(20,901)
Increase (decrease) in:
Derivative financial instruments	0	0	(186)	(209)
Trade accounts payable	(386)	(1,497)	29,880	98,545
Reverse factoring	(26,750)	(103,652)	121,061	8,104
Taxes and contributions payable	139	537	5,112	9,334
Deferred revenue	(919)	(3,562)	(3,641)	(1,875)
Accrued expenses	6,378	24,719	(2,978)	30,118
Share-based payment	(158)	(611)	(2,366)	(715)
Other liabilities	(2,135)	(8,273)	(8,683)	(12,954)
Net cash provided by (used in) continuing operating activities	(25,990)	(100,707)	43,502	(7,778)
Cash flows from continuing investing activities:
Proceeds from sale of discontinued operation (note 3a)	62	241
Purchase of property and equipment	(5,725)	(22,185)	(7,728)	(25,069)
Loan to third parties (note 3a)	(2,271)	(8,801)
Purchase of intangible assets	(18,515)	(71,743)	(49,378)	(47,043)
Interest received on installment sales	373	1,445	2,071	6,987
Restricted cash	(900)	(3,485)	6,206	760
Net cash used in continuing investing activities	(26,976)	(104,528)	(48,829)	(64,365)
Cash flows from continuing financing activities:
Proceeds from debt	0	0	134,152	137,325
Payments of debt	(14,721)	(57,040)	(141,788)	(79,004)
Payments of interest	(16,230)	(62,889)	(108,429)	(105,234)
Share-based payment	0	0	(5,824)
Proceeds from issuance of common shares	0	0	423,166
Net cash provided by (used in) continuing financing activities	(30,951)	(119,929)	301,277	(46,913)
Net cash used in discontinued operations (note 03)	(2,096)	(8,121)	(18,162)	(13,620)
Effect of exchange rate changes on cash and cash equivalents	1,198	4,644	6,869	(5,083)
Change in cash and cash equivalents	(84,815)	(328,641)	284,657	(137,759)
Cash and cash equivalents, beginning of period	102,189	395,962	111,305	249,064
Cash and cash equivalents, end of period	17,374	67,321	395,962	111,305
Change in cash and cash equivalents	(84,815)	(328,641)	284,657	(137,759)
Non-cash investing and financing activities:
Acquisition of property and equipment and intagible assets	563	2,182	1,710	R$ 4,677
Deferred offering costs reclassified to equity	0	0	6,808
Convertible notes converted to common shares	0	0	94,151
Reclassification of share-based payment from Cash-settled arrangement to Equity-settled arrangement	$ 0	R$ 0	R$ 13,706

Consolidated Statements of Financial Position R$ in Thousands, $ in Thousands	Dec. 31, 2018 USD ($)	Dec. 31, 2018 BRL (R$)	Dec. 31, 2017 BRL (R$)
Current assets:
Cash and cash equivalents	$ 17,374	R$ 67,321	R$ 395,962
Restricted cash	773	2,996	19,397
Trade accounts receivables, net	42,275	163,807	113,168
Inventories, net	69,318	268,594	456,632
Recoverable taxes	15,282	59,214	80,047
Prepaid expenses and other current assets	5,198	20,138	48,352
Total current assets	150,220	582,070	1,113,558
Non-current assets:
Restricted cash	4,783	18,533	15,048
Judicial deposits	30,896	119,717	106,914
Recoverable taxes	10,332	40,033	70,765
Other assets	3,656	14,166	1,950
Due from related parties	2	7	12
Property and equipment, net	19,740	76,489	73,039
Intangible assets, net	36,987	143,317	115,839
Total non-current assets	106,396	412,262	383,567
Total assets	256,616	994,332	1,497,125
Current liabilities:
Trade accounts payable	87,003	337,120	365,835
Reverse factoring	11,685	45,276	148,928
Current portion of long-term debt	9,929	38,473	106,577
Taxes and contributions payable	4,766	18,467	19,875
Deferred revenue	1,028	3,983	3,732
Accrued expenses	35,285	136,721	120,366
Other current liabilities	6,635	25,711	31,017
Total current liabilities	156,331	605,751	796,330
Non-current liabilities:
Long-term debt, net of current portion	49,140	190,406	179,394
Provision for labor, civil and tax risks	5,145	19,935	12,523
Deferred revenue	5,598	21,690	25,502
Other non-current liabilities	0	0	27
Total non-current liabilities	59,883	232,031	217,446
Total liabilities	216,214	837,782	1,013,776
Shareholders' equity:
Share capital	63	244	244
Additional-paid in capital	347,781	1,347,581	1,345,507
Treasury shares	(396)	(1,533)	(1,533)
Accumulated other comprehensive loss	(2,845)	(11,022)	(13,664)
Accumulated losses	(304,135)	(1,178,464)	(847,125)
Equity attributable to owners of the parent	40,468	156,806	483,429
Equity attributable to non-controlling interests	(66)	(256)	(80)
Total shareholders' equity	40,402	156,550	483,349
Total liabilities and shareholders' equity	$ 256,616	R$ 994,332	R$ 1,497,125