Natuzzi S.p.A (NYSE:NTZ) Q3 2019 Earnings Conference Call - Preliminary Transcript
Dec 02, 2019 • 10:00 am ET
mainly for depreciation and amortization, plus the profit of the JV in China for example and others. Then we had a total of positive items for EUR17.1 million mainly deriving -- basically derived from a lower working capital need, and in particular, following the actions carried out to lower inventory and trade receivables. Notably such working capital reduction is proportionally higher when compared with the slow down in sales.
Secondly, such positive total of EUR17.1 million includes already EUR4.6 million of cash out for the reduction of workforce in Italy since the restructuring costs are included into the operating result. Then we use EUR6.3 million
to payback interest on financial debt and taxes. As a consequence cash provided by operating activities as displayed in our press release was positive by EUR6.3 million we have then paid EUR4 million for capital expenditures. This means to address another question we have just received that we had a small but still positive free cash flow of EUR2.3 million which came out in third quarter this year. Then we had EUR36.1 million used as follows. EUR4.5 million reimbursed on long-term borrowings, EUR10.5 million used to payback lease contracts related to our old stores. And EUR21.1 million to reimburse short-term debt mainly related to lower sale of trade receivables to the securitization financing vehicle inline with lower sale.
What we do expect for the next quarter. We will have sales a little higher then those in the third quarter 2019 adjusted play. But still lower compared with the fourth quarter, 2018 in spite of that we should display an improvement of operating result when compared with that reported in the third quarter 2019. Thanks everybody.