ATTO - Earnings call transcript Q3 2020

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Operator

Good day, ladies and gentlemen, and welcome to Atento’s Third Quarter 2020 Results Conference Call. My name is Beatrice and I’ll be your operator. [Operator Instructions] As a reminder, today’s call is being recorded.

Now, I’d like to turn this call over to Mr. Shay Chor, Investor Relations. sir. ahead, go Please

Carlos López-Abadía

and, all In and communicated our recovery in expected to of the and results that growth we joining that you the project extension improvements. year. continue importantly, QX us sequential business the most QX business happy of the QX. today. such to QX reflect the Also, improvements of general, with of we’re recovery and morning for thank rest you, for we in year-on-year Good call, profitability confirm through to we the

experienced than movement deliver the and have expect year terms. dollar last impacts few we to a the we levels pandemic the in Although in significantly current XXXX adverse rate months, with of during at FX absorb or along it, EBITDA last better

in points. We XX%. improved has sequential EBITDA margin by significant QX to has than and improvement, over metrics. operational all doubled, QX increased have percentage achieved key revenue EBITDA more has extending X.X

put precrisis and EBITDA More XXXX, XX%. revenue X%, over these same levels. by we improved have at close in the with results has to period importantly, compared grown When us our

in over We in QX. recovering. volumes we in also X% our levels, over XXXX and XX% with to also continue despite volume a are growth to average XXXX QX, year-on-year XX% growth of Very quality QX. lead margin achieving with improve Multisector levels growth. sales importantly, sales. additional higher the the Telefónica continues low Telefónica forecast revenue sequentially, up In are expect grew compared with higher Sales business slowdown contribution QX, those to in which reflect

on last on transformation back November. our three-year communicated which With these plan, results and we’re track we to forecasts, deliver

by or exit above the the year required We expect to plan. rates the at

the of year challenges by us, Let XXXX on by been on focus the pandemic status. dominated presented a addressing pandemic. the the full has me touch

of feel crisis. of the hopeful we Although working. that model our employees are while our in reconfiguration COVID there signs are of developing still the to Atento@home We centers in middle redeployment the is the horizon, the and

permanent well We us serve a XXXX are beyond. deploying platform and will that into

vigilant to However, deliver and service clients. priorities. to continue We employees The we’re the not of safety our our continued our complacent. on remain to

on transformation, the on business transformation. internally. XXXX, both touch we and progress and immediate to completion focused the opportunities me externally challenges Let of the of continue business our Despite be the of

in We continue progress to our higher and results operational make improved significantly plan. seen can improvement in The margins. be growth

continue to We our diversify also business.

from when clients digital media, implement and Our and carry businesses into Multisector up XX% XX% more digital, to Moreover, have tech-enabled margins. demand that therefore, we are which we the such revenues, Three started Horizon fast-growing higher now e-commerce of Plan. and tech, expanding represent almost verticals, as solutions more been

client important diversifying the right focusing been have remains The to with Telefónica continues a client. our direction. on very we Although relationship Telefónica base, move in

importantly, very and fourth mentioned and with, Telefónica revenues to volumes the continuing as First gain in quarter. are XX% sequentially earlier, I traction up QX recovering

into more of their this we of Telefónica and to partner choice better customer with Second, allows generate our the to margins particularly business also improving, move services. for our next-generation of services. as – is more be to strengthen This experience position quality us and

strengthening with improve America. As Atento’s position we consistently our Latin performance, market in dominant

in And nearly a lead the percentage market maintain than larger We XX%. market share, brand a more share points. the we on In XX% strong to over and competitor. In commanding position leadership segment, two capture are player we by share is the domestic our Brazil, XX region. capitalizing next market our Xx

quarter. from than average, sales points more and XX XX% programs accelerate. legacy services, next-generation contribution next-generation to last margin XX% percentage than higher transition contract. of on Our to These new up services yield, continues our our average

Brazil of in to centers culture and new last innovation is part first We our sales part come thinking of over It not be process. in XX and needs day-to-day that the deployed developed Spain. completely the year services from a of in now of our have innovation the linear know We This XX% alone, company. months.

internally. innovations deploying also We’re

We the the have process. allowed to and to and our of activities. competition success digital competitive intelligence end-to-end such the the advanced use We highly developed artificial fully selection these current automation critical from in pandemic. a share take U.S. Its recruitment us during and markets rate as improve speed training has success

continue governance. to our introduce We improvements in

Board independent of and to We total diversity planned. increases summary, welcomed to of directors, two. execute of on of the deliver results out Board the and number to transformation our the In five two we expertise directors Directors, which our as increases have continue additional independent of

from of and initial recovered with crisis significantly operating a are last higher impact improved at levels have the We performance higher and margins. the COVID year growth than

an and managed and to real. crisis to in expect finish in we have foreign XX% market change or year than our XXXX. year, or at EBITDA the by a we year-on-year. margin, XX% In the close at having in to We rate QX X.X% EBITDA expect than better finish X operating improved better levels result the last Brazilian and by points year terms, terms, constant both percentage revenue of XX% current after EBITDA better exchange adverse significant In than equal

top of a we begun a improvement represents year This second line, to we first the in year-on-year X% had recovery grow that pandemic. drop in we address sequentially, the to In of of expect In which is beginning result QX. the the the growth. terms as the of X% the half have half year,

real to Brazilian under been control the leverage maintain we able our depreciation. with even Finally, have

the to know not flow continue EBITDA three net XXXX. will improvement deliver cash With has XXXX, of expect of quarters. higher ahead targets long-term crisis end continued XXXX. improve over, to the and into consecutive generation for Our We debt that led in is leverage well we it on

us on with the significant let a you year. much, over awaiting other gives will trajectory confidence very XXXX with José. We upward But turn face of to optimism to challenges Thank and overcoming us sense XXXX exiting of and opportunity. be difficulties next it also plan know year the a the me that and there

José Azevedo

Carlos. Please the next you, turn slide. Thank to

revenue growth During the make as were following continued in nearly of a noted revenue which XX.X%. revenues we significant environment. to difficult for A nearly EBITDA, consolidated XX% of increase basis, while revenues On our greater is sequentially XX% a in and our drove Multisector also crisis should U.S. note and The terms revenue next-generation to to Multisector growth, Multisector expanded a in services increase Telefónica resume increase basis margin X% a quarter, Carlos points revenues, main a EBITDA sources doubled. encouraging of nearly Sequentially, headway sequentially. profitable as in we mix the were able grew to like X% Brazil grew XXX I our that XX.X%. and

On nearly digital that XX% see mostly the driven was effects on we a from the in have through sales been to higher of grown our stability improvements next-generation which this Brazil’s revenue. programs in improving for This more quarter, the demand moment. the have of in will XXXX. we market. end efficiency achieving growth continue Telefónica, of services. At by I to we returned also levels Three under this QX clients operational Plan. on the growth come in higher Multisector Horizon that Our expand

U.S., improving were the revenue Although in it revenue More Colombia. important, increased basis XX% we Americas, our to led growth which strong of mix, XX% and the a expanding increase the by strongest XX% sequentially. by able to XX.X%. EBITDA with by profitability decreased, Multisector year-over-year, margin in XXX Telefónica by points was increased

for our been decreased We in revenues expect Colombia nearly is strong. the nearshore as impact to has business. pandemic growth economic the lower mainly Peru, of very from continue XX%, delivering where Telefónica volumes

XX X%. business on the increase Also, quarter volumes trend, resulted basis although XXXX, volumes, XX% revenues increased EMEA, In higher Telefónica low our increased sales customers and in in by volumes. at business a Multisector increase existing region a increased greater EBITDA quarter-over-quarter. to they a operating base point the expansion over these in in sales revenue. in in with higher markets, new higher Telefónica X% efficiencies the margin. additional clients Looking XX.X% third and And led the XX.X% and Telefónica just with compared these sequential Multisector

profitability, points. EMEA’s well of margin – mix higher revenue, EMEA’s Multisector XX services levels expanded improved has efficiency next-generation at basis raising margin has an XX.X%, Looking while the

an provide to like operational improvement. to the on I’d our turn Please slide. update Now ongoing next

$XX to savings we million $XX operating During in we we our the to months, cost efficiencies, the revenue have drive last nine growth with along which target. approximately improving profitable annualized are quarter, remain achieve over Of implemented track mix. million the and targeting, on to we that our continued contributed have

the are Please operating and revenue of through improving combination been which efficiency be and services our zero-based next operating by and include and initiatives to of footprint expect free cash the efficiencies various has the year, we operations, to implemented budgeting, mid-XXXX. still that to addition the of rightsizing strict turn shared raising an implementing In functional levels. in operating a early of controls The gradually also best reduction slide. are cost This mix fully SG&A expenses combination we the the flows. higher including across Atento’s driving ongoing

cash interest on the quarter, our XXXX third XXXX. in more purposely the of have it a flow $XX expensive same a $XX that $X on and cash deferred $XX million operating quarter million because repaid generated been repaid during our of nine-month we basis, decreased we paid bond flow the has credit second in taxes certain quarter, the over some During increase to Free million lines, pandemic. in the bringing million period

flow nine course $XXX $X to turn reduce we slide. cash flow positive track to healthy million the Please improved The cash are us next the on Over to leverage. however, generating of almost months, a million. keeping the is free

remained the X% consecutive debt end million, net at while $XXX position fell a of the decrease the the strong last cash to for year. $XXX Our quarter of over quarter million, at third

on in EBITDA, we flat in when a expect drive leverage to of Our the summarize, X.Xx excluding X.Xx Argentina took medium at we financial of is And that XXXX. and XX-month To a charge leverage X QX between healthy. ratio we achieve was in net impairment liquidity our basis term. debt-to-EBITDA as the

As to markets financial refinancing one questions, regard the we open a monitor notes. the for we continue senior XXXX our final with call to before

alternatives third refinancing Operator, we call, what performance. call we seeking profile. that review please of earnings is for are are As we in questions. our believe open with aligned our That best the concludes our stated quarter credit QX our

Operator

question first Sachs. Our from Goldman Instructions] Vitor [Operator Tomita, comes

Vitor Tomita

is the on us Two us the in X% guidance side. all. is give expect EMEA, for is CapEx levels, markets very sales – question CapEx more And given first could give to XX% ahead? historical you And if morning, improvement color if the in for XXXX XXXX some of one-off color any Good on margin is We for some time. or QX the recurring are sustainable? that questions would seasonal margin should could And thanks and from leverage below that to we in our you. second the question Thank you level be, if strong factors? that related

Carlos López-Abadía

Victor. you, Thank

me me Shay is also let more the So you and addition as of in I’m ask But a give CapEx, And it. give margin going specifics here, on IR, to little improvement also to he CapEx. the on let actually manages philosophy you in on – well. José bit to make And specifically address a his me quick let also he comment our duties, that. the

cost in later front, to end paying right the that CapEx, CapEx the you into the choking I on. other are is on same as and my price parts which up the have of through results do So philosophy the things will get equation, think you is

for long I think is the business our philosophy build term. the to

make we term. we we the do have So and that need to to for we make the – to investments we do have know make long

to choking said until So those careful costs the that and very through that, this a postponing was second Having Shay we not on of that in crisis the QX. trying and we the had to more have year we’re impact sure the artificially made we we let were half in the very things José our special resource. I’ll and the But comment year, that what then get specific and for CapEx we plans. to could depth

eventually efficiencies, look term, improvement of So margin obviously, the inherent the But to business I in and margin; improvement winning, margin EBITDA contribution level, improvement, the of and couple at Again, contribution two, it long the flow. let’s the at the look margin top the contract. quality cash but two the margin of margin has we’re components: the the – operating say, one, building the a the ways. and the right? also we’re what through: for the On we at operational

our all those we’re dimensions. three – So improving

inherently about services. many talk we’ve higher us services Services of heard we’re the next-generation margins done the putting legacy on that us you that than type the emphasis and think I for years. give

of So that’s one components. the

as component we completely to a multiyear second be we do. number in you more remake and we operations times, is of The to plan much more have have, what efficient me a have doing much heard our effective

So the of margin. we’ve of And SG&A were the best one, that’s in is, department, in third second there’s terms of efficiencies component we improvement hey, and the not which addressed those. the

to all improvement me our on multiyear improvements we seriously see those have guys, probably as you three-year as of well. you we and combination three, that and hard we for you stay that very to our to many will a work of take So continue. employees promised the are the margin target investors heard plan, all and very And we saying times,

So it is multiyear a plan.

track, are a you and improvement along plan. on continued We see should the

improvement You seeing There were the very José? more the were But about quarter. But José very specifically margin is fundamentally, you’re specifically. asking not talk of many part in about one-offs. can I trend. think one-offs this

José Azevedo

Shay, answer Yes. then I question. – and with will please let complete the CapEx, I answer Shay go CapEx. I ahead second

Shay Chor

Yes.

Sorry.

sorry So – about that.

look if this Investor November the in we in published sorry, plan last his we you last Carlos, last year chart – in our into in Vitor, Day, dossiers So presentation. that and have three-year

X.X% of to for recurring on CapEx will years. a basis couple We are next targeting the between be X.X%

between go QX. next mentioned, very Carlos XXXX, higher. It’s non-recurrence. for essential put EMEA other fast XX% than be of That’s should pretty EMEA more specific. state is we freeze more more We steady Multisector any going talk was dependence still revenues. But forward to and everything of between be that into in the volatile not because about slightly is X.X% to when by that our they is But XX%. regions as expect moving Telefónica on of So year to with X.X% so is more XX% than XX% in specifically because still XX% I’ll that. much margin expect you between from standards, EMEA. basis EMEA that now to José And expect should others design. more you it Telefónica aligned be be volatile expect you designers, to into just industry before and then us is Telefónica. that’s between EMEA, recurring any But should dependent not different should let in be José to the XX%. to

José Azevedo

that the an of Perfect. year, have About one-offs, it’s very important terms mention in to revenues impact. we this

is budgeting even we that We that was It expect have give some from earlier we X% was order we in cover have million done about start because started the we one-offs terms one in an a to zero-based XXXX. to revenue. from that rightsizing about of terms extra for do some that to coming rightsizing, bit the started we impact in costs results. have we We that. agreed. inside have in $XX COVID have it basis. programs that a we disclosure want the and ongoing of $XX can and But we to don’t idea, What in have means you the we end, At we thing give any our that million that,

pandemic, coming to doing. do we for we’re And million can basis, some you is ongoing that cover. exactly that what actions the will gaps the we the next have to $XX from cover year. If try But

Carlos López-Abadía

the but And number chose to we of they numbers. them In to in not sure we’re include were words, that a We other make clear. had negative. we’re just one-offs, –

not – negative results. It’s [Audio excluding including So one-offs. is to you the not to we quoted guys are everything Dip] the is number this

any So there not [Technical were Difficulty] major

Vitor Tomita

clear. you Very much. Thank very

Operator

question next Our Vincent comes from Colicchio, Barrington.

Vincent Colicchio

strength Yes. us in multiple market? more color contract? is nearshore you Multisector Is U.S. some Carlos, what’s one it on give clients? could large the driving the Or it

Carlos López-Abadía

QX, And in And spike was, we also in one did the of Sure, there a of Vincent. clients. multiplicity have a pandemic. – in win that because U.S. significant The we the it’s volume have.

different sector. Difficulty] probably number more volume. focusing hit, a [Technical of a of we’re number That pandemic digital companies how of digital a those increase contracts [Technical more Within the was the companies, Difficulty] in naturally on type economy. much those Given

the had answer bit on I well. new So vast as Vincent? little to your working the we [Technical pace of Difficulty] a that question, expected, portfolio, U.S. I volume-wise, But from a but at the maybe comes we peak that in contracts win majority Did continue

Vincent Colicchio

you. tied sequential capabilities. is correctly, Thank then if And the Yes. new growth services, and heard success Telefónica to strong with the I next-generation

could And if are? you on that color capabilities give is new First that correct? those more is correct, of what all, us

Carlos López-Abadía

It’s impression. large. Telefónica Business It’s not mix. other want very, with give is very that to the very a I a It’s substantial. wrong

improvement the for of when won completely some people. With competed with, to with these example, contracts, services. take some have with a also Accenture we quite some Telefónica, So a number during nice with first it’s it’s will significant predominantly. next-generation Telefónica, that one of make what it we sorry, The the continues. there of QX, all, – we are of pandemic discussed in the had in beginning had pandemic, the improvement a fundamental we mix well, a is Difficulty] of that mix. with time competing we with we more zip to of happy mix that very We volumes. a particularly [Technical business new But contracts. We’ve the regard start – different the set particularly in I’m pandemic a for in [Technical Difficulty] in with Difficulty] moving business big towards And [Technical customers. Telefónica Brazil, at But recently

with go a way We to very that mostly are they tell to idea we’ve what you to still you be an services, that long done proud Just different customer to Accenture beginning are able make we I traditionally. nature say very to give are in progress the that we important well. board. very but mentioned progress we’re U.S. good the I’m as in making most across to Telefónica, have our with

Vincent Colicchio

question. last then And

clients hearing it How players that Latin the happening? We’re business piece virtual longer in U.S.-based getting of a become you from are over of ground? their America Do may comfortable does on some cloud the that term. the increasingly and with see feel delivery

Carlos López-Abadía

Vincent. customers. bigger That’s question, [Audio Dip] a There’s dollar no tell. Dip] That’s million the question [Audio to

be to everybody be First of trend in pandemic But place the these would with expect operating an to from similar be Hopefully, I in in openness, remote the – asks condition. [Audio very all And and think things basis, we dealing vaccines better. services get and will therefore, the We some is on and a continue a see all, will likely there to way. Dip] right? ongoing a pandemic right?

the that, the for of that services model a [Technical having at-home difficult provide for There the us. provide in We element of what – past passes, and in that How looking We center see the that are business. model. more XXXX. in That’s cost of in business We model centers, at-home at of to in the will that model consolidate the a some advantages the provide example. of We’re of Difficulty] could benefits that We is in could number proportion for model. we happens everything significant services do because continue much right? see lot least

Shay Chor

the it’s that again? very bad Becuase audio. Carlos, explain – could you

Carlos López-Abadía

Hello? Sorry.

Vincent Colicchio

Yes. again. Go ahead. Try

Carlos López-Abadía

of there’s don’t I best advantages to and at-home model Atento our lot the for employees, a not the started clear. for But know customers. being for part what

like major XX% early business model. see to of a we how do, be to the to We XXXX? Difficulty] the Now at-home will would move I openness see business it’s – our of great say, think We in – much [Technical can see. fraction to we good a let’s can the

Vincent Colicchio

my Nice quarter. for much Thanks questions. very

Operator

[Operator Instructions]

Carlos López-Abadía

You still me? hear

Shay Chor

No, we hear you, Carlos.

Carlos López-Abadía

Okay.

Operator

[Operator Instructions]

Shay Chor

for we So wait the questions phone. while over

me some Let questions webcast. here get from the

what the on next expect what refinancing decision bond We steps walk for the we through what the questions was the have on two happened, bond. and to and

Carlos López-Abadía

a specific what heard me the We the is I that and of decision not interest. was. lines where the was having bit – Let decision the mean along what I question. quite had assume

this shared know, clear I – see when a that satisfactory how not time get. the that not in terms In call, a that I quite fact, that with, time to to only to us. we [Technical track think would the started talking it, were not – were were in see obviously do that, said things José is that quite satisfactory were we – we at stakeholders. our very were conditions refinance And as long I didn’t the conditions do that frankly, all We to lost in point Difficulty] Having to many I’m we satisfactory and the discussed don’t with investors.

to expect of might not that more [Audio Dip] of having So window business. all continue the improvement us. Different interesting be

Shay Chor

that’s to No, if know anything to I I it. anything José add. add. has don’t don’t have

decision wait as the think a for of basically all profile has I mentioned, believe I the was of with Carlos, was, credit to the the right company. the interest stakeholders decision you and think is the we aligned be what moment. It better

Operator

have we one more. Yes,

comes [indiscernible] Our next from question

Unidentified Analyst

Hello and Yes, to thanks for taking question. question. results. previous And on was my mine the the related congratulations

there’s of Atento. play was a company see Just a – terms of There had whether Peruvian because seeing also now that’s in in a in has market similar that care in issuance as health rating we – terms Mexico. are total we window you the

I along think not you. that on now, little B million commensurate you be, case to lines, comment main XXXX. – address, perhaps just the in is August So $XXX the of bondholders if could yield you feedback you’re what the if bit closed for is concern, it And banks, go in sales, the that should a you you of those with maturing to in coupon terms how asset which plan believe that. if market basically Thank could wanted then could, the remains getting if and comment from you is

Carlos López-Abadía

not imprudent Yes. will We do have that. it a to as be have plan B

Dip] when let I’m the feel a have view don’t [Audio still, forecast they not they – I’ll right I That’s be markets. in to on my Shay definitely honest, think going do of have is not area. goals with to for We market. the that opinion. banks. on subsequent the the have timing particular, put I planning. we an

we a company good In [Audio [Technical a have good of opinion perspective, timing of in better and the on position [Technical Difficulty] a From when believe is to we fact. be myself So I Dip] that what sure likely the keep perspective, timing particular so. trust we looking fact, have in be. we’ll window. market on but have I window matter But from – at do Difficulty] likely my my terms be one robust to don’t would to make that windows market good And is think a I is potential I market-wise. job in

Shay Chor

And just of add, interest show are There that again, in we we thanks, And Yes. a ready. lot to Carlos. in the just road September. – were did

So the the continue alternatives. idea market for is all monitoring to

do still to time. after treat have next to in now the we It don’t distress, It’s bondholders, So see least all. shareholders at in after the B, are plan right? year a silver next financial any we year A, way no August plan of and that. year, don’t August still have, refinance We of have we’ll negotiation process fairly to we expect until So And any bullet. is to all debt. X

So monitoring. we’ll going any good we’ll strategy If opportunity, chance. take is continue That’s forward. there the the

Carlos López-Abadía

at pessimism can my that particularly some crisis look markets, we and with is of a I are way still buy $X, you right which opinion, The all in [Audio now, Latin element markets. and of of with profit America. things, Dip] capital. good the maybe in But guys, COVID And

for so are communicated to during issue things get that better you, COVID to take we We we on or will I through distribute be all know an to But to there’s the vaccinate that are It are about all while of planning a of told forth. market. come much year. XXXX. and a and going to that vaccines next number coming Next, a so

of of few – I’m starting the think I my things honestly But I to year. economic loom get in time. versus not some an I is that so some point start get at sense the sense going – We to better means optimism, next mean in terms take of expect the next will improving are things forecaster months. expectation optimism

your to better right but meantime, operate I question with in of the company on specific window. continue answer the terms market deliver that the the the results. since Sorry, didn’t to the In we timing, is

the that’s combination. right think approach I and right

Unidentified Analyst

that No, Thank sense. much. Perfect. makes very perfect you

Shay Chor

So let me take given webcast. QX? strongest flow the debt we material year. from in free questions free we the should Any QX a changes, is for the months the from accumulated expect million reported should flow that first cash What nonrecurring any Typically, effect perspective. cash here you an of X $X

Carlos López-Abadía

I address company. let know our We’lI he’s flow one. this José been cash champion in the José?

José Azevedo

cash the That – of of the flow flow exactly good in same October, And flow flow still way. is – our operating are track. still cash on expectation positive So of the we cash. to end closed we already and year. we is at improve year. we have honestly, terms what positive in the to we in have in expectations a cash cash the see have have terms a is Yes, of free have end can We expectation our

Shay Chor

Beatrice, any phone? other questions from the

Operator

From the Instructions] phone at not. the [Operator moment,

Shay Chor

Okay.

position. you the So using. see revolvers you one we that as revolvers? another carry expect let return you to in When cash flow is almost minimum What you probably have to the $XXX should the have essentially working negative expect operate? those for revolvers from when you’re webcast. million a should we you me on cash take And I now on

Carlos López-Abadía

the ago of more that and this management José I and to flow it uncomfortable turned as now when I’m came out. a out, levels we Shay I the and on how Yes. I right and cash comfortable are manage carrying of levels two the much terms company, was – being cash in things. bit years was

specific So flow about very shy say perspective we a months, more of and with The rather flow more, let – cash this, tell to were think management have risk-averse basis what few the of cash I been the say, I’ve is of from of the level. efficient but a on And at moment, the see. we over can good specifics the QX that basis question evolution than are we my in where I’m just more the to But next being a comfortable in the just be – we we’ll have it’s the pandemic. let’s José. under perhaps

to Shay, So the you months. want way is may on think comment you efficient handle to José, most in what next few the

Shay Chor

Yes.

Carlos. you, Thank Okay.

approximately we just $XX payroll. And million, company. numbers, $XX operating cash need slightly is $XX lines to need million monthly million, as less in our available. then we X-X, put minimum So additional this million This an than of $XX credit

thought to that you liquidity The from we business? around cash $XX a proper another throughout little this we next will the as releasing And it year, So year. any that we And in liquidity what savings the some webcast. probably year? part much in carried make repaid go. sure took free and the revolvers need and interest year-end seems the now as how in crisis. prudent of rates we actually operating this we the But payrolls. to said, of of the that expected do are spend the believe renegotiating a in have that need One We the probably we originally be lower year – we That we for two July. that $XX the was expenses the continue may that question was that in ensure was I recurring half line better have we next how for have of to to million of beginning here the we is on very closer in to reduce start lines Brazil and monthly liquidity If in improved Brazil. first we generate already as the expensive system. flow revolvers a we we’ll already planned way you in expect much that for around is has and the total are paying Carlos more probably And cash it be play in above this million, mentioned, are the minimum that you delivered year, and the the year interest approach.

Carlos López-Abadía

and Yes, between. easy nothing of one-off some they like are things that in chart together things XX very José business. structural, terms Nothing is are comes and structural, of XX a that I are things – recurring. easily some some gradation, meaning XXX% indicating the and are a estimate, in are in relatively there’s put Rough

to sure properly. [indiscernible] to of work making $XX hear Can million $XX still maintain I We’ll probably have to to have recurring. million Am continue You are and me? connected? work you But you things

Shay Chor

are. you Yes,

Carlos López-Abadía

Okay.

short in answer the million million $XX is of So probably recurring. the the order are probably $XX of

Shay Chor

wave made preparation any Okay. can if second pandemic? describe a you to are Carlos, the of

Carlos López-Abadía

Yes, for sure.

zero in can have I XXXX, that now first on were One get. into the prepared managed difficult to from thing the of of it’s I better to We’ve are feel are like confident version – counting We go home. But very deployed whole to scenarios, we’re our in pandemic right do we That’s XX,XXX better probably already true true even thing the the can moment, at QX. we continue working I permanent is, – to the tell – how even us. we the of right? As platform much particularly than going well employees of you, to world. in mentioned, extremely difficult at to difficult – much work-at-home. one order in worse it’s forecast the into tell very So I things again, you or

anymore employees. not just of through our the it’s doing effort So

in and the capabilities. to the do deploying testing version way We are make intend this the months probably the we of with We more of platform second business. couple – next a be

expect we for and has mentioned, I value Atento As this a also for employees. of lot for customers,

to we So for way operate. the be need we this

than the in better are handle to we second at we a ever position a So were much wave beginning.

these very things with – of solid never with to more pandemic. no I much predict, are difficult a impact to although So deal you position much, cannot I will a on can tell because, the you deterioration again, have that can say us it

pandemic We into counting else, are on continue Anything well to XXXX. Shay? the

Shay Chor

anything webcast. have else here don’t We the on

Carlos López-Abadía

case, probably more from have we questions can In that phone, any the close. don’t Okay. we

Shay Chor

the question other over any Beatrice, phone?

Operator

No, we more the have don’t from any phone. questions

Carlos López-Abadía

thank and of And the safe. let stay for a today, great case, the as Very everyone are the Thank and In day week. me us that good. rest joining wish these times everyone days, you.

Shay Chor

you Thank all.

Atento (ATTOF) 13 Nov 202020 Q3 Earnings call transcript