Earnings Release -2Q13

7/27/2019 Earnings Release -2Q13

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TELECONFERENCES

Portuguese

Date: 08/13/13| Hour: 10h00 (Braslia)

Tel.: 11 2188-0155 | Password: DASA

English

Date: 08/13/13 | Hour: 12h00 (Braslia)

Phone: 1(412)317-6776 |Password: DASA

Romeu Crtes DominguesChairman

Dickson Esteves TangerinoCEO

Cynthia May HobbsCFO

Octvio FernandesVP of Operations

Emerson Leandro GasparettoDirector of Imaging

Paulo BokelInvestor Relations [email protected]

Tel.: (011) 4197-5410

Fax: (011) 4197-5516

www.dasa3.com.br

2n QUARTER 2013EARNINGS RESULTS

DASA grows gross revenues in 12% and

increases net income by 52% in 2Q13

DASA ON

Bovespa: DASA3

Quoted price:

R$ 12,10

Average daily trade volume

R$ 27.9 Million on 2Q13

Market value:

R$ 3.8 billion

US$ 1.7 billion

Free Float: 97.2%
http://www.dasa3.com.br/http://www.dasa3.com.br/


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2nd QUARTER 2013 RESULTS

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Barueri, March 04th 2013:

Diagnsticos da Amrica S.A. DASA (BOVESPA: DASA3) has announced today the results related to the second quarter of 2013.

The companys operational and financial information are calculated on a consolidated basis and in million of Reais, based on

accounting practices extracted from the Brazilian Corporate Law, except where stated otherwise. The information herein

refers to the Companys performance in the second quarter of the year 2013, compared to the second quarter of the year

2012, except where stated otherwise.

In this quarter, DASA reached a gross revenue of R$ 698.5 million with a 12.0% growth incomparison to 2Q12. In this 2Q13 results were affected by a high number of holidays. In 2Q12we had 60 working days, while in 2Q13, we had 63 working days, which positively impacted

our revenues.The outpatient market reached a gross revenue of R$ 506.9 million in 2Q13 with a 10.8%growth when compared to 2Q12, representing 72.6% of DASAs total gross revenue.

The hospital market revenue reached R$ 70.6 million in the 2Q13, with 16.1% increase, whencompared to 2Q12, equivalent to 10.1% of DASAs total revenue.

The lab-to-lab market ended the quarter with 5,052 customers serviced in the Country. Thegross revenue of this market expanded by 21.5% in the 2Q13, reaching R$ 73.7 million, whichrepresents 10.6% of DASAs total revenue.

The public market reached revenue of R$ 43.7 million in 2Q13, an increase of 6.1%, reaching6.8% of the total revenue of DASA.

Revenue per business (R$ million) - Markets

Financial performance highlights

457.5

506.9

60.8

70.660.6

73.744.6

47.3

2Q132Q12

Outpatient Inpatient Lab to Lab Public Sector

7.1%

9.7%

12.0%

21.5%

10.8%72.6%

10.6%623.5

73.4%

6.8%6.1%

698.5

10.1%9.8%16.1%


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Revenue per Line of Service (R$ million) Clinical Analysis X RID

The revenue of the same units (PSC) grew by 9.4% in the 2Q13 as compared to the 2Q12.

We ended the quarter with 521 units, of which 66 are hospital units.

In 2Q13, EBITDA amounted R$ 110.8 million, compared to R$ 103.0 million in 2Q12,representing 17.6% of net revenue.

CAPEX investments in 2Q13 totaled R$ 29.1 million. These investments were directed to: (i)implementation and development of customer service system, (ii) acquisition, refurbishing andenlarging the existing PSCs and (iii) purchasing of imaging equipment.

407.9462.2

215.7

236.4

2Q12 2Q13

RID Clinical Analysis

623.5

698.5

13.3%

9.6%

12.0%

65.4%

34.6%

33.8%

66.2%

Highlights 2Q13 2Q12 %Total Gross Revenue (R$ MM) 698.5 623.5 12.0%

Outpatient Revenue (R$ MM) 506.9 457.5 10.8%

Hospitals Revenue (R$ MM) 70.6 60.8 16.1%Lab-to-lab Gross Revenue 73.7 60.6 21.5%

Public Gross Revenue 47.3 44.6 6.1%

Working days 63 60 5.0%

Gross Revenue (R$ MM) / Working day 11.1 10.4 6.7%

N Total units 521 525 -0.8%

N PSCs 455 447 1.8%

N Hospital units 66 78 -15.4%

EBITDA (R$ MM) 110.8 103.0 7.6%

Ebitda margin 17.6% 18.0% -0.5 p.p

Net income (R$ MM) 35.2 23.1 51.9%

CAPEX (R$ MM) 29.1 49.3 -41.1%

Same Units Outpatient (%) 9.4% 5.1% 86.9%


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53 papers approved in the 2013 AACC (American Association for Clinical Chemistry)

One of the papers was awarded at the conference by the NACB (National Academy of ClinicalBiochemistry)

Over 50 medical events held this year

The second 100% automated conveyor became operational, at the central laboratory of Duque

de Caxias, increasing productivity and further modernizing the facility

Prize for the best company in the healthcare industry by Revista Valor 1000 (Value 1000Magazine)

Outpatient Market

The Outpatient market has a revenue of R$ 506.9 million in 2Q13,

representing a 10.8% growth as compared to 2Q12.

Revenue per Line of Service (R$ million) Revenue per brand (R$ million)

During the second quarter we had a strong increase in the growth of

Imaging exams due to opening new schedules, as well as the

regularization of ultrasound exams, which represents approximately

30% of RDI revenue.

We have continued to renovate our units to increase capacity,

services offered and improve amenities.

Operational highlights

Financial performance

261.4

294.8

196.1

212.1

2Q12 2Q13Clinical Analysis RID

57.1%

42.9%

457.5

506.9

41.8%

58.2%

8.2%

10.8%

12.8%307.2 338.1

150.3168.8

2Q12 2Q13Premium and Executive Standard

67.1%

32.9%

457.5

506.9

33.3%

66.7%

12.3%

10.8%

10.1%


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This quarter, the revenue from clinical analysis grew more than fromimaging.

Average Requisition Price (R$) and Requisition Volume (million)

The increase in the average value per request when compared to2Q12 was largely because of a better mix in RDI, made possible dueto the increase in capacity after the changing and installation of newequipment; mainly CT and MRI scanners.

Hospital Market

The Hospital market generated consolidated revenues of R$ 70.6million in the second quarter of 2013, which is an increase of 16.1%compared to the same period of the previous year. This is explaineddue to the initial operation of new hospitals and the increase ofservices in our current hospitals.

Revenue per Line of Service (R$ million)

3.6 3.6 3.3 3.5 3.8

126.5130.5

134.5 134.0 133.7

2Q12 3Q12 4Q12 1Q13 2Q13

Requisitions Average Requisition Price

48.554.2

12.3

16.4

2Q12 2Q13

Clinical Analysis RID

79.7%

20.3%

60.8

70.6

23.2%

76.8%11.8%

16.1%

32.8%


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Average Requisition Price (R$) and Requisition Volume (million)

The average ticket was positively impacted by new services andoptimizing of hospital base.

Lab-to-lab

Gross Operational Revenue (R$ million) Performance (R$ million)

1.2 1.1 1.0 1.1 1.1

49.8 52.256.5 56.3

64.7

2Q12 3Q12 4Q12 1Q13 2Q13

Requisitions Average Requisition Price

60.6

73.7

2Q12 2Q13

21.5%

2Q12 x 2Q13

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 Var. %

Revenue (in R$ milions) 59.9 60.6 64.3 57.9 64.4 73.7 21.5%

# of Laboratories 4,811 4,853 4,897 4,903 4,984 5,052 4.1%

Average Revenue/Laboratory (in R$) 12,447 12,497 13,121 11,817 12,919 14,589 16.7%

# of Requisitions (in Th) 3,483 3,520 3,816 3,366 3,737 4,293 22.0%

# of Requisitions/ laboratory 724 725 779 687 750 850 17.2%

Average Revenue/ requisitions (in R$) 17.2 17.2 16.8 17.2 17.2 17.2 -0.4%

4,8535,052

12,497 14,589

2Q12 2Q13

# of Laboratories Average Revenue/Laboratory (in R$)

199


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The lab-to-lab market ended the 2Q13 with a gross revenue of R$73.7 million, with a growth of 21.5%, and the equivalent of 10.6% oftotal gross revenue.

This business performance is a reflection of the strategy to increaseour capillarity visibility by pursuing new customers in our currentroutes, opening new routes and improving our product mix.

Public Sector

Gross Operational Revenue (R$ million)

The revenue of the Public market was R$ 47.3 million in this quarter,an increase of 6,1% when compared to 2Q12.

The growth is largely due to new contracts, which became effectiveduring 2Q13.

We finished the quarter with a total of 26 clients, covering a total of592 collection points (84 Hospital Units and 508 of the Outpatient

Network).

44.647.3

2Q12 2Q13

6.1%

576 592

77.479.9

2Q12 2Q13

# collecting s ite Revenue per col leting s ites

16

2Q12 x 2Q13

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 Var.%

Revenue (in R$ millions) 43.8 44.6 48.1 43.7 43.7 47.3 6.1%

# of Clients 30 30 26 25 24 26 -13.3%

# of Units Attended - Inpatient 100 83 93 86 83 84 1.2%

# of Units Attended - Outpatient 522 493 620 503 505 508 3.0%

# of Requisitions (in Th.) 1,622 1,755 1,623 1,441 1,507 1,556 -11.3%

Revenue per Requisition (R$ Th) 27.0 25.4 29.6 30.3 29.0 30.4 19.7%

Revenue per colleting sites 70.5 77.4 67.4 74.2 74.3 79.9 3.3%


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Taxes on Services

In the 2Q13, R$ 40.1 million were recorded as taxes collected over

the services provided, which stands for 5.7% of the gross revenue, in

relation to the 5.4% ratio of taxes recorded in the 2Q12 (R$ 33.9

million).

Discounts and Deductions

The discounts and deductions account have reached R$ 27.2 million

in the quarter, accounting for 3.9% of the gross revenue, in

comparison with 2.9% (R$ 18.0 million) in 2Q12.

From this amount R$ 25.4 million are related to provisions and losses

due to disallowances and payment default while R$ 1.8 million is

related to discounts. In 2Q12, the value was R$ 18.0 million in

provisions and losses for disallowances and payment default.

Net Operating Revenue

The net operating revenue reached R$ 631.3 million in 2Q13, which

means an increase of 10.4% compared with 2Q12.

Cost of Services

The cost of services includes expenses related to the operation of

the PSCs, cost of clinical analysis production and RID.

PSCs costs are divided into fixed personnel, general and public

services, rents and facility maintenance; and variable - materials

used in the collection and production of clinical tests and RID, which

may vary according to the volume of requisitions processed. Costs

related to the processing of clinical tests include reagents, personnel

and the operating costs of the central laboratories. RID processingcosts consist of expenditures with equipment maintenance, expenses

with test report centers and the hiring of specialized medical clinics

to issue reports on these tests.

The changes on the line of personnel, materials, services and

utilities and general expenditures are due to the characteristics of

each brand and to the difference between their costs structure. The

main difference is in the attendance, where the B2C market has

collection units and all costs related to this operation, showing its

main costs as personnel and services and occupancy costs. At the


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B2B market its main cost is material, as it does not have collection

unit, but only the processing of tests.

1) Personnel costs decreased as % of net revenue, when compared to the

second quarter of 2012, due to increase of productivity in the Patient

Service Centers

2) Despite the strengthening of the dollar against the Brazilian Real, and

growth in the number of exams concentrated in the Hospital and Lab-

to-lab markets, where the ratio of cost of material cost versus theprice of the exam is much higher when compared to the outpatient

market. The cost of materials was diluted a bit in relation to the

revenue growth in 2Q13, compared to 2Q12, due to higher growth and

productivity gains.

3) Despite the strengthening of the dollar against the Brazilian Real, and

growth in the number of exams concentrated in the Hospital and Lab-

to-lab markets, which the percentage of cost of material in price of

the exam is much higher when compared to the outpatient market,

Cost of Services Cash

2Q13 1Q13 2Q12 2Q13 1Q13 2Q12 2Q13 x

1Q13 %

2Q13 x

2Q12 %

Personnel 118.6 111.2 116.6 18.8% 19.1% 20.4% 6.7% 1.8%

Materials 110.9 100.5 102.0 17.6% 17.3% 17.8% 10.3% 8.8%

Services and Utilities 174.0 156.9 140.1 27.6% 27.0% 24.5% 10.9% 24.1%

General 6.4 6.2 5.5 1.0% 1.1% 1.0% 3.2% 16.4%

Cost of Services Cash 409.9 374.8 364.1 64.9% 64.4% 63.7% 9.4% 12.6%

Depreciation and amortization 24.3 27.8 21.5 3.8% 4.8% 3.8% -12.7% 12.9%

Cost of Services 434.2 402.6 385.6 68.8% 69.2% 67.5% 7.8% 12.6%

In R$ Million Variation %% of Net Revenues


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the cost of materials was diluted in relation to the revenue growth in

2Q13, compared to 2Q12, due to higher growth and productivity gains.

4) In the services and utilities line there was an increase compared to

2Q12. This account registers the occupancy cost of the service units,

medical services in preparing reports from imaging exams, data links,

expenses from representatives from lab-to-lab, shipping and other

occupancy costs. In comparison with 2Q12 the difference was due to

the increase in medical services contracts, occupancy costs, which

have increased over the inflation, data links to provide redundancy

and contingency systems, and costs associated with shipping.

5) The General expenses line remained practically stable compared to 2Q13.

This line accounts for spending on miscellaneous fees, insurances and

representation expenses.

Cash Gross Profit

In the 2Q13, the cash gross profit was R$ 221.5 million, a 6.7%

increase in relation to 2Q12, and the cash gross margin of the period

reached 35.6%, compared to 36.3% in 2Q12.

Cash Operating Expenses

Below, the main variations in the cash operating expenses lines as a

portion of the net revenue, in relation to the previous year, are

described:

Breakdown of Cash Operating Expenses

2Q13 1Q13 2Q12 2Q13 1Q13 2Q12 2Q13 x

1Q13 %

2Q13 x

2Q12 %

General and Administrative 105.2 101.8 98.5 16.7% 17.5% 17.2% 3.3% 6.8%

Profit Sharing Program 6.9 7.6 6.4 1.1% 1.3% 1.1% -9.5% 7.9%

Other Operating Revenues/ Expenses (1.4) (1.7) (0.4) -0.2% -0.3% -0.1% -16.1% 279.3%

Cash Operating Expenses 110.7 107.7 104.5 17.5% 18.5% 18.3% 2.7% 5.9%Depreciation and Amortization 13.5 14.0 14.1 2.1% 2.4% 2.5% -3.7% -4.4%

Operating Expenses 124.1 121.7 118.6 19.7% 20.9% 20.7% 2.0% 4.7%

In R$ Million % of Net Revenues Variation %


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The general and administrative expenses increased this quarter in

relation to the same period in 2012, due to the increase in call

center structures and because of the focus on improving the quality

of service. However, the revenue growth allowed for dilution of this

expenses.

This quarter has R$ 6.9 million in provisions of Profit Sharing

Program.

Depreciation and Amortization

The expenses with depreciation and amortization summed up to R$

37.7 million, or 6.0% of the net revenue in the quarter, against R$

35.6 million (6.2% of the net revenue) in 2Q12.

EBITDA

EBITDA

Margin

R$ million 2Q13 2Q12 D % YTD 2013 YTD 2012 D %Net Income (Loss) 35.2 23.1 51.9% 58.7 59.6 -1.4%

(+) Income Tax and Social Contribution 19.8 10.6 86.5% 32.5 31.9 2.0%

(+) Net Financial Expenses 18.1 33.6 -46.2% 39.1 66.1 -40.8%

(+)Depreciation and Amortization 37.7 35.6 6.1% 79.5 67.8 17.3%

Ebitda 110.8 103.0 7.6% 209.9 225.3 -6.9%

Margem Ebitda (%) 17.6% 18.0% -0.5 p.p. 17.3% 20.0% -2.7 p.p.

103.0 110.8

18.0% 17.6%

2Q12 2Q13

7.6%


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Net Financial Expenses

The breakdown of net financial expenses is:

Investment Income: Refers to the interest received from cash

investments.

Debentures / Promissory Notes Expenses: Refers to the costs of

interests in promissory notes and debentures issued, including the

transaction costs.

Other Financing Expenses: Foreign bonds interest expenses,

interest from leasing contracts in foreign and/or national currency,

working capital and other financing expenses.

Others: The values of this line include bank expenses, expenses with

credit card charges, notarial expenses, financial discounts granted to

clients, updating of contingencies, financial operations tax (Imposto

de Operaes Financeiras IOF) and income tax paid on the transfer

of interest abroad, as well others expenses not related to borrowinterests and others financing. In addition, the non-recurring

earnings of the adhesion of Tax debt payment program (Refis/SP)

was reported this quarter at an amount of R $ 9.3 million.

Income Tax and Social Security Contribution

The total income tax and social contribution presented in the 2Q13 a

balance of R$ 19.8 million, compared to R$ 10.6 million in 2Q12.

R$ (Millions) 2Q13 2Q12

Net Financial Expenses (18.1) (33.6)

Investment Income 2.4 3.0

Debentures/Promissory Notes Expenses (20.0) (20.7)

Other loans and financing expenses (3.4) (5.5)

Other 2.9 (10.5)


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Net Profit

In the 2Q13, the net profit was R$ 35.2 million, as compared to R$

23.1 million in the previous year, an increase of 51.9%.

Goodwill to be compensated in next years (Thousand R$)

We emphasized that we continue to benefit from the tax credit

effect in the amortization of the capital in excess of the

incorporated companies, as the table below:

For 2013, the value excludes 1H13

In 4Q12, we began to amortize Cytolabs and Dasa BrasilParticipaess (Previlab) goodwill, due to the incorporation of

Cytolab by Dasa, on November 30th, 2012, and the incorporation of

Dasa Brasil Participaes by Previlab, on December 31st, 2012.

Cash tax

We shall continue to make the most of the goodwill on previous

acquisitions and, as from November 2011, the goodwill of the

incorporation of MD1. The value of Cash tax was R$ 8.0 million.

* Withholding tax (current): Originally from financial income and withholding of gross revenue

Year Goodwill2013 143,317

2014 277,254

2015 205,723

2016 199,613

2017 196,355

2018 189,621

2019 158,017

Total 1,369,900

36.0%

20.2%

34.0%

2.0%

4.2%

-19.9%

Income Tax Rate permanentsadjustements in

tax books

Income Taxes(Financial

Statements)

TaxLoss/GoodwillCompensation

Other Withholding tax(current)/

Income taxescash*

2Q13


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Net income considering effective tax rate

Of the net profit, we have adjusted the exchange rate effects andDeferred Income Tax/Capital in excess, totaling Cash Earnings ofR$ 43.4 million.

* Adjusted by the rate of 34% of Income Tax/ Social Contribution

DASA net debt totaled R$ 852.3 million in 2Q13. About 69.1% of

DASAs total gross indebtedness is long term and 7.5% are

denominated in foreign currency. The debt in foreign currency is

mainly formed by the equipment financing and International Notes.

The national currency debts are largely related to the debentures,CCBs and Leasings.

Includes the balanced sheet items: loans and financing, debentures and financial instruments.As of 4Q12, we introduced the net debt calculation methodology, compatible to the one used by the fiduciary

agent.

Breakdown of net indebtedness

Indebtedness

R$ Millions 2Q13 2TQ12

Short Term (336.5) (220.1)

Domestic Currency (324.4) (202.3)

Foreing Currency (12.1) (17.8)

Long Term (752.5) (818.1)

Domestic Currency (682.7) (744.5)

Foreign Currency (69.7) (73.6)

Total ST + LT (1,088.9) (1,038.2)

Cash and Cash equivalent 236.5 135.1

Domestic currency 206.5 104.1

Foreing currency 29.9 31.0

Net Debt (852.5) (903.1)

R$ Million1Q12 2Q12 3Q12 4Q12 2012 1Q13 2Q13

(=) Net Profit 36.4 23.1 26.8 (1.6) 84.7 23.6 35.2

Fx variances/ MTM* 0.2 0.9 0.2 0.4 1.7 (0.1) (0.5)

( + / - ) Deferred Income Tax + Goodwill 11.5 5.1 4.8 (11.6) 9.8 3.8 8.7

(=) Net income considering effective tax rate 48.1 29.2 31.7 (12.9) 96.2 27.2 43.4


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Cash Flow Analysis (R$ million)

We have detailed under this section the main variations in the cash

flow statement.

(*) Not consider R$ 39.4 million of the cash payment of the tax debts (ICMS in State of So Paulo.

Neither consider the Financial Result of R$ 9.3 million gained with this payment.

This quarter, our Capex is in line with the cash flow, as planned.

The investments in CAPEX in 2Q13 totaled R$ 29.1 million, 41.1% lower

than the same period in 2012.The investments were directed mostly to:

(i) development and deployment of production systems and services and

renovation of technology, (ii) the acquisition, renovation and expansion

of existing units and (iii) purchase of imaging equipment.

CAPEX (R$ millions) CAPEX Breakdown 2Q13

Investments

Information

Technology

R$ 8.3 MM

Opening and

Expansion of

PSCs

R$ 9.8 MM

Equipment

R$ 10.9 MM

33.8%

28.7%

37.5%

113.4

192.5

234.0

73.0

41.3 49.329.1

2010 2011 2012 1Q12 1Q13 2Q12 2Q13

Management Cash Flow (R$ Million) 2Q13

Accounting EBITDA 110.8

Operacional working capital (16.3)

Other working capital accounts* 28.0

Financial expenses* (27.4)

Income tax (8.0)

Operational cash flow 87.1

Capex (29.1)

Free Cash Flow 58.0

Covenants jun/12 jun/13

1) Net Debt / Ebitda = 2,0 3.32 4.62


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Below is summarized the investments made in expansion and

refurbishing of PSCs, besides new PSCs.

DASA shares closed 2Q13 at R$ 11.57, accumulating a decrease of

1.0% in the quarter, versus 5.1% decrease of the Ibovespa. Over this

period, DASA shares were transacted on 100% of Bovespas trading

sessions, summing up to a financial volume of R$ 1.8 billion (daily

traded average of R$ 27.9 million).

Performance in stock exchange (DASA ON versus IBOVESPA)

Investments

Capital market

2011 2012 1Q13 2Q13

Opening of PSCs 9 22 6 1

Standard 7 21 5 1

Mega 2 1 1 0Refurbishing/expansion of PSCs 45 30 17 17

Tomography installation 10 7 - 1

MRI installation 5 10 2 2

Total equipment 15 17 2 3

Ongoing Refurbishing - 2 13 10

Completed Refurbishing 30 11 2 4

Other refurbishing 30 13 15 14

Dec-04

Mar-05

Jun-05

Sep-05

Dec-05

Mar-06

Jun-06

Sep-06

Dec-06

Mar-07

Jun-07

Sep-07

Dec-07

Mar-08

Jun-08

Sep-08

Dec-08

Mar-09

Jun-09

Sep-09

Dec-09

Mar-10

Jun-10

Sep-10

Dec-10

Mar-11

Jun-11

Sep-11

Dec-11

Mar-12

Jun-12

Sep-12

Dec-12

Mar-13

Jun-13

VOLUME (R$) DASA3 IBOVESPA


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Trading Volume (R$ Thousand/day) Number of trades /day

Election of the Board of Directors

In the Shareholders Meeting held on April 22 of 2013, after consideration

of the matter by the shareholders present, the slate of candidates

presented by the Board on April 4 of 2013 was approved, in accordance

with the voting system established in paragraph 5 of Article 17 of the

Corporations bylaws, and consequently the members of the Board of

Directors were elected, namely:

Bovespa information

Highlights of the quarter

Close R$ (06/28/2013) 11.57

2Q13 High (R$ per Share) 12.00

2Q13Low (R$ per Share) 10.80

% Chg. In 2Q13 -1.0%

Market Cap (R$ MM) 3,607.6

Market Cap (US$ MM) 1,628.7

Free Float 97.21%

Outstanding Shares 311,803,015

Bovespa - DASA ON

18,594

25,864

30,721

27,857

2010 2011 2012 2Q13

-9.3%

1,294

2,889

5,001

6,894

2010 2011 2012 2Q13

37.9%


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Special Installment Program of the State of So Paulo

The Decree by the State of So Paulo No. 58.811/12 provided for a

special installment program ("PEP ICMS / SP"), with a signup deadline by

August 31st, 2013, which established a waiver of up to 75% of fines and

50% of interest fees on the ICMS debts, accrued or not, including those

included in outstanding debt, judged or to be judge relating to taxable

events up to July 31st, 2012, with even further reductions of fines in the

cases of debt issued in Notices of Violation and Imposition of Fines - AIIM

not included in outstanding debt.

Given these favorable conditions, the Company opted to avail itself of

the PEP of ICMS / SP benefits and agreed to the program, in May 2013,

including the ICMS debts levied on direct imports of equipment and

supplies accrued between 2007 and 2011, which had not been fined for

yet and which were the object of Writs of Mandamus in proceedings

before the Justice of the State of So Paulo. The single payment was

done on May 22nd and June 5th of 2013, totaling R$ 39,398 as follows:

Thus, considering we had previously made provision for contingencies

for these debts amounting to R$ 48,726, the final gain obtained by

adhering to the PEP was R$ 9,328. This amount was noted in the

revenue of the financial reports of the period, related to discounts in

interest and fines.

Since it was voted to pay it all in one shot, there are no more values

recorded in liabilities with respect to the special installments in

question made for the non-fined ICMS over import debts.

On June 30, 2013, the amount recorded for imports from January 1st,

2003 forth is R$ 49,235 (R$ 96,155 at December 31st, 2012) with the

controller as well as consolidated reports, with judicial deposits

amounting to R$ 52,607 (R$ 51,642 at December 31st, 2012).

ICMS DEBT(WITHOUT

REDUCTIONS)

PROGRAMS

REDUCTIONS

DEBT AFTER

REDUCTIONS

EXISTING

PROVISION

NETFINANCIAL

RESULT

55,286 (15,888) 39,398 48,726 9,328


20/25


20/25

CADE approval Proscan and ProEcho

On June 5th, 2013, the Court for the Administrative Council of Economic

Defense ("CADE") approved, without restriction, the Concentration Act

No. 08012.000322/2008-97, for the acquisition, during the second half

of 2007, of the control of Proscan Diagnostico por Imagem SA, ProEcho

Cardiodata Servios Mdicos Ltda. and Pro Echo Rio de Janeiro Servios

Mdicos Ltda. (collectively, "ProEcho") by Laboratrios Mdicos Dr.

Srgio Franco Ltda. (Srgio Franco), currently controlled by DASA.

This operation happened before DASA had taken control of Sergio Franco

through its association with MD1 Diagnostics SA ("MD1").

CADE imposed fines for the alleged untimely submission of the

transaction at the amount of R$ 282,639.30 and ordered the payment of

additional fees at a value of R$ 137,538.00.

DASA is waiting for the publication of CADEs decision before deciding

on taking measures.


21/25


21/25

Income statement

R$ million 2Q13 2Q12 D %Gross Operating Revenues 698.5 623.5 12.0%

Deductions (67.2) (51.9) 29.4%

Sales Taxes (40.1) (33.9) 18.1%

Discounts (27.2) (18.0) 50.8%

Net Operating Revenues 631.3 571.6 10.4%

Cost of Services Rendered (434.2) (385.6) 12.6%

Personnel (118.6) (116.6) 1.8%

Materials (110.9) (102.0) 8.8%

Services and Utilities (174.0) (140.1) 24.1%

General (6.4) (5.5) 16.4%

Depreciation and amortization (24.3) (21.5) 12.9%

Gross Profit 197.2 186.0 6.0%

Operating Expenses (124.1) (118.6) 4.7%

General and Administrative (105.2) (98.5) 6.8%Profit Sharing Program (6.9) (6.4) 7.9%

Other Operating Revenues/ Expenses 1.4 0.4 279.3%

Depreciation and Amortization (13.5) (14.1) -4.4%

Net Financial Expenses (18.1) (33.6) -46.2%

Operating Earnings 55.0 33.8 62.8%

Income Tax and Social Contribution (19.8) (10.6) 86.5%

Net Income (Loss) 35.2 23.1 51.9%


22/25


22/25

Balance Sheet - R$ thousands 2Q13 1Q13 2Q12 2Q13 1Q13 2Q12

Total Assets 4,324,914 4,315,434 4,197,762 Total equity and liabilities 4,324,914 4,315,434 4,197,762

Current 1,055,397 1,039,112 888,999 Current liabilities 665,048 425,800 472,545

Cash and cash equivalents 206,726 228,319 104,059 Current liabilities 87,583 80,909 67,165

Marketable securities 29,745 31,296 31,026 Accounts payable to suppliers 27,989 38,794 208,974

Accounts receivable 571,346 552,888 512,426 Loans and financing 38,630 28,417 33,750

Inventories 57,588 53,111 62,639 Taxes and contributions payable 114,712 93,292 94,181

Recoverable taxes 156,191 144,633 137,229 Salaries, social security charges & vacations payabl 4,573 6,349 7,501

Prepaid expenses 1,172 1,152 1,995 Installment payment of taxes 1,633 1,618 1,521

Other current assets 32,629 27,713 39,625 Accounts payable from acquisition of subsidiaries 308,431 92,917 10,452

Debentures 5 20,235 2

Noncurrent assets 3,269,517 3,276,322 3,308,763 Dividends and interest on shareholders equity 56 936 676Long-term receivables 217,095 214,635 233,613 Derivative financial instruments 81,436 62,333 48,323

Marketable securities 57,037 57,859 84,127

Deferred tax assets 59,499 57,604 48,385 Noncurrent liabilities 993,813 1,258,787 1,124,601

Other credits 2,583 2,631 9,641 Long-Term Liabilities 993,813 1,258,787 1,124,601

Prepaid expenses 707 806 1,191 Loans and financing 100,658 91,002 120,435

Judicial deposits 97,269 95,735 90,269 Installment payment of taxes 24,138 25,889 38,430

Investments 778 873 224 Deferred tax liabilities 62,111 51,535 45,386

Property and Equipment 704,882 710,932 719,173 Provision for contingencies 85,009 134,190 127,530

Intangible assets 2,346,762 2,349,882 2,355,753 Accounts payable from acquis ition of subs idiar ies 66,072 66,887 72,010

Debentures 651,792 884,812 696,886

Related parties - - 22,223

Financial instruments derivatives 17 447 754

Others 4,016 4,025 947

Total equity 2,666,053 2,630,847 2,600,616

Capital 2,234,135 2,234,135 2,234,135

Capital Reserves 65,427 65,427 65,427

Profit reserves 322,978 323,091 257,660

Equity evaluation adjustment 1,257 1,414 1,885

Retained Earnings 58,681 23,522 59,651

Stock option plan 1,759 1,456 1,079

Treasury stock (18,617) (18,617) (18,617)

Non-controlling interests 433 419 (604)

Consolidated balance sheet


23/25


23/25

Statement of cash flows

AccountQuartely

04/01/13 to 06/30/13

Quartely

04/01/12 to 06/30/12Year-to-date 2013 Year-to-date 2012

Net cash from operating activities 77,340 72,593 138,147 148,848

Cash from operations 100,300 99,550 194,376 211,984

Net income for the period 35,172 23,281 58,732 59,651

Depreciation and amortization 37,749 35,664 79,559 67,922

Restatement of contingencies 1,814 1,475 5,423 3,221

Deferred tax 8,680 5,128 12,484 16,651

Restatement of interest and ex change variation on loans (597) 32,028 (597) 59,605

Gain on sale of f ixed assets 29,413 1,117 50,438 4,131

Noncontrolling interest 477 (222) 2,151 (276)

Stock option plan 303 1,079 399 1,079PDA (12,711) - (14,213) -

Changes in assets and liabilities (14,955) (18,350) (40,935) (54,529)

Increase in trade accounts receivable and other receivables (5,747) 4,680 (58,678) (22,407)

Increase in inventories (4,477) 1,595 3,854 14,728

Increase in other current assets (14,269) 4,914 (14,043) (23,989)

Decrease (increase) in other non-current assets (566) (17,766) (650) (21,513)

Decrease in trade accounts payable 6,674 (1,036) 4,047 (9,476)

Increase in accounts payable and provisions 3,430 (10,737) 24,535 8,128

Other (8,005) (8,607) (15,294) (8,607)

Interest paid - - - -

Income tax and social contribution paid (8,005) (8,607) (15,294) (8,607)

Net cash from investing activities (29,056) (51,581) (70,332) (124,628)

Additions to property and equipment (23,997) (47,553) (54,072) (117,771)

Additions to intangible assets (5,059) (4,028) (16,260) (6,857)

Net cash from f inancing activities (69,877) (54,372) (89,608) (170,106)

Loans taken out 202 37,807 202 45,081

Payment of loans (7,687) (11,189) (25,451) (120,315)

Capital payment (41,892) (44,589) (43,859) (58,471)

Dividends and IOC paid (20,500) (36,401) (20,500) (36,401)

Increase (decrease) in cash and cash equivalents (21,593) (33,360) (21,793) (145,886)

At beginning of period 228,319 (33,360) 228,519 249,945

At end of period 206,726 (33,360) 206,726 104,059


24/25


24/25

Statement of added value

) 1. Revenue 700,080 624,258 1,340,873 1,234,360

- Sales of goods, products and services (-) 698,540 623,543 1,338,952 1,233,087

- (Reversal of) allow ance for doubtful accounts (-) (55) - (70) (16)

- Other revenue (-) 1,595 715 1,991 1,289

- -

) 2. Inputs acquired from third parties 335,245 288,837 638,048 558,557

- Inputs used (+) - 88,533 - 185,750

- Cost of products, goods and services sold (+) 244,305 130,353 467,361 238,061

- Materials, energy, third-party services and other (+) 90,940 69,951 170,687 134,746

- Recovery/Loss of assets (+) - -

- -

- -

= (1-2) Gross value added 364,835 335,421 702,825 675,803

-

Depreciation, amortization and depletion (+) 37,749 35,664 79,559 67,922

-

= (3-4) Net value added produced 327,086 299,757 623,266 607,881

- -

) 6. Transferred value added received 26,414 13,558 34,467 30,085

1 Equity pickup (-) - 13,558 - -

2 Financial income (-) 26,414 34,467 30,085

3 Other (-) - - -

-

= (5+6) Total value added to be distributed 353,500 313,315 657,733 637,966

-) 8. Distribution of value added 353,500 313,315 657,733 637,966

1 Personnel (+) 152,268 141,208 295,817 270,589

2 Taxes, fees and contributions (+) 89,547 73,257 168,824 157,713

3 Debt remuneration (+) 76,513 75,701 134,360 150,101

4 IOC and dividends (+) - - - -

on-controlling interest (-) 13 (132) 51 (88)

5 Retained profits (+) 35,159 23,281 58,681 59,651

AccountQuartely

04/01/13 to 06/30/13

Quartely

04/01/12 to 06/30/12Year- to-date 2013 Year-to-date 2012


25/25


Statement of changes in shareholders equity

01/01/2013 a 06/30/2013Paid-In Capital Reserve Profit Retained earnings Other Non-controlling Consolidated

Description Capital Granted options and Reserves accumulated comprehensive Equity interest equity

treasury shares losses income

Opening balances 2,234,135 48,171 322,933 0 1,571 2,606,810 382 2,607,192

Adjusted opening balances 2,234,135 48,171 322,933 0 1,571 2,606,810 382 2,607,192

Shareholders capital transaction 0 398 0 0 0 398 0 398

Capital increases 0 398 0 0 0 398 0 398

Recognized options granted 0 0 0 0 0 0 0 0

Dividends 0 0 0 0 0 0 0 0

Total comprehensive income 0 0 0 58,681 0 58,681 51 58,732

Net income for the period 0 0 0 58,681 0 58,681 51 58,732

Other comprehensive income 0 0 0 0 0 0 0 0

Non-controlling i nterest 0 0 0 0 0 0 0 0

Internal Changes in Equity 0 0 45 0 -314 -269 0 -269

Reserve constitution 0 0 0 0 0 0 0 0

Additional proposed dividend 0 0 -269 0 0 -269 0 -269

Depreciation of deemed cost 0 0 314 0 -314 0 0 0

Closing balances 2,234,135 48,569 322,978 58,681 1,257 2,665,620 433 2,666,053




Opening balances 2,234,135 48,267 323,090 23,522 1,414 2,630,428 419 2,630,847

Adjusted opening balances 2,234,135 48,267 323,090 23,522 1,414 2,630,428 419 2,630,847

Shareholders capital transaction 0 302 0 0 0 302 0 302

Capital increases 0 302 0 0 0 302 0 302

Recognized options granted 0 0 0 0 0 0 0 0

Dividends 0 0 0 0 0 0 0 0

Total comprehensive income 0 0 0 35,159 0 43,645 14 43,659

Net income for the period 0 0 0 35,159 0 43,645 14 43,659

Other comprehensive income 0 0 0 0 0 0 0 0

Non-controlling i nterest 0 0 0 0 0 0 0 0

Internal Changes in Equity 0 0 -112 0 -157 -269 0 -269

Reserve constitution 0 0 0 0 0 0 0 0

Additional proposed dividend 0 0 -269 0 0 -269 0 -269

Depreciation of deemed cost 0 0 157 0 -157 0 0 0

Closing balances 2,234,135 48,569 322,978 58,681 1,257 2,665,620 433 2,666,053




Opening balances 2,234,135 46,810 259,204 0 2,199 2,542,348 -328 2,542,020

Adjusted opening balances 2,234,135 46,810 259,204 0 2,199 2,542,348 -328 2,542,020

Shareholders capital transaction 0 1,079 -1,858 0 0 -779 0 -779

Recognized options granted 1,079 0 1,079 1,079

Dividends -1,858 0 -1,858 -1,858

Total comprehensive income 0 0 0 59,651 0 59,651 -276 59,375Net income for the period 0 0 0 59,651 0 59,651 -88 59,563

Other comprehensive income 0 0 0 0 0 0 -188 -188

Non-controlling i nterest 0 0 0 0 0 0 -188 -188

Internal Changes in Equity 0 0 314 0 -314 0 0 0

Depreciation of deemed cost 314 -314 0

Closing balances 2,234,135 47,889 257,660 59,651 1,885 2,601,220 -604 2,600,616




Opening balances 2,234,135 46,810 259,204 36,370 2,199 2,578,718 -382 2,578,336

Adjusted opening balances 2,234,135 46,810 259,204 36,370 2,199 2,578,718 -382 2,578,336

Shareholders capital transaction 0 1,079 -1,858 0 0 -779 0 -779

Recognized options granted 0 1,079 0 0 0 1,079 0 1,079

Adicional Dividends 0 0 -1,858 0 0 -1,858 0 -1,858

Total comprehensive income 0 0 0 23,281 0 23,281 -222 23,059

Net income for the period 0 0 0 23,281 0 23,281 -132 23,149

Other comprehensive income 0 0 0 0 0 0 -90 -90

Non-controlling i nterest 0 0 0 0 0 0 -90 -90

Internal Changes in Equity 0 0 314 0 -314 0 0 0

Depreciation of assigned costs 0 0 314 0 -314 0 0 0

Closing balances 2,234,135 47,889 257,660 59,651 1,885 2,601,220 -604 2,600,616

Documents

Earnings Release -2Q13