LINX S.A. (NYSE:LINX) Q4 2019 Earnings Conference Call - Final Transcript

Mar 31, 2020 • 10:00 am ET

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LINX S.A. (NYSE:LINX) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, ladies and gentlemen, and thank you for attending today's conference call to discuss the Results for the Fourth Quarter of 2019.

At this moment, we have here with us Alberto Menache, CEO; Ramatis Rodrigues, CFO; and Carol Fong Chu [Phonetic], Investor Relations Officer of the company.

I would like to remind you that this event is being recorded and simultaneously translated into English. All participants will be in listen-only mode during the company's presentation. [Operator Instructions].

This event is simultaneously being broadcast via webcast and it can be accessed at the address ir.linx.com.br, where the presentation is available for download. Participants may view the slides in any order they wish. The replay will be available right after the event is concluded.

Before concluding and proceeding, let me mention that any forward-looking statements about future events, operating or financial results are based on beliefs and assumptions of Linx and on information currently available to the company. Future considerations or forward-looking statements are not guarantee of performance as they involve risks and on circumstances that may or may not occur. Investors and analysts should understand that macro-economic conditions and other operating factors may affect the results; and therefore, results may materially differ from those expressed in such forward-looking statements.

Now, I'll turn the floor to Alberto Menache, who will initiate the presentation. Alberto, you may proceed.

Executive
Alberto Menache

Good morning. Thank you very much for your interest and trust in Linx. I would like to start by talking about this unusual moment we're experiencing with the dissemination of the coronavirus that poses a very challenging and worrisome scenario in all areas.

Two weeks ago, Linx put in place some necessary preventive measures to minimize the effects of the pandemic. And with the introduction of a crisis committee, the company has assigned the guidelines for work from home for all employees. We put on hold or paused some domestic and international business travel, and at the same time has been discussing and monitoring several other topics on a daily basis.

At this time, a large portion of our customers are facing a very adverse situation that includes temporary shutdown of shops, and a severe downfall in consumption, mainly of items not related to food, drugs, and hygiene.

Having digital solutions like e commerce and the delivery app, are gaining momentum of what alternatives to ensure at least a portion of the revenue of these retailers during this period. Due to the uncertainties related to how the outbreak will leave all its impact on the economy and the measures to be adopted in Brazil and in other Latin American countries where the company operates, it becomes impossible to predict right now what the total impact on the global economy will be, and by the same token what that means for our business as well.

So far, Linx hasn't experienced any tangible impact stemming from the spread of the virus and continues to monitor delinquency levels and churn from closing of stores. Moreover, I would like