Valid reported company and consolidated earnings results for the fourth quarter and year ended December 31. 2017. For the quarter, the company reported revenue from sales and/or services of BRL 161.4 million against BRL 164.7 million a year ago. Income before finance income was BRL 11.3 million against BRL 28.8 million a year ago. Income before income taxes was BRL 6.4 million against BRL 19.9 million a year ago. Income attributable to controlling shareholders was BRL 1.1 million against BRL 27.9 million a year ago. Cash provided by operating activities was BRL 48.4 million against BRL 36.3 million a year ago. Acquisition of PPE was BRL 3.6 million against BRL 6.6 million a year ago. Acquisition of intangible assets was BRL0.7 million against BRL 2.1 million a year ago.

For the quarter, the consolidated company reported revenue from sales and/or services of BRL 411.9 million against BRL 417.0 million a year ago. Income before finance income was BRL 29.2 million against BRL 28.7 million a year ago. Income before income taxes was BRL 23.9 million against BRL 23.2 million a year ago. Income attributable to controlling shareholders was BRL 1.1 million against BRL 27.9 million a year ago. Cash provided by operating activities was BRL 87.6 million against BRL 93.4 million a year ago. Acquisition of PPE was BRL 15.5 million against BRL 14.4 million a year ago. Acquisition of intangible assets was BRL 8.9 million against BRL 14.0 million a year ago. Adjusted EBITDA was BRL 66.1 million against BRL 62.8 million a year ago. EBITDA was BRL 57.9 million against BRL 58.2 million a year ago.

For the year, the company reported revenue from sales and/or services of BRL 657.7 million against BRL 666.5 million a year ago. Income before finance income was BRL 51.6 million against BRL 79.4 million a year ago. Income before income taxes was BRL35.3 million against BRL 43.2 million a year ago. Income attributable to controlling shareholders was BRL 27.7 million against BRL 88.3 million a year ago. Cash provided by operating activities was BRL 68.2 million against BRL 92.1 million a year ago. Acquisition of PPE was BRL 11.0 million against BRL 24.3 million a year ago. Acquisition of intangible assets was BRL 2.6 million against BRL 10.1 million a year ago.

For the year, the consolidated company reported revenue from sales and/or services of BRL 1,574.4 million against BRL 1,723.8 million a year ago. Income before finance income was BRL 93.7 million against BRL 113.2 million a year ago. Income before income taxes was BRL 64.4 million against BRL 67.4 million a year ago. Income attributable to controlling shareholders was BRL 27.7 million against BRL 88.3 million a year ago. Cash provided by operating activities was BRL 81.9 million against BRL223.1 million a year ago. Acquisition of PPE was BRL 25.2 million against BRL 64.1 million a year ago. Acquisition of intangible assets was BRL 21.3 million against BRL 33.3 million a year ago. Adjusted EBITDA was BLR 245.9 million against BRL 278.9 million a year ago. EBITDA was BRL 206.6 million against BRL 267.3 million a year ago.

Capex for 2017 was close to BRL 50 million, The company expects for 2018 is something slightly higher than last year. The expectation for 2018 is that the operational cash flow generation will return to normal level, as the company has seen during the second half of last year. The company's reduced net debt by almost BRL 60 million when the company compare to the third quarter of 2017, ending the year with a net debt-to-EBITDA of 1.9x. Expectations for 2018 is that with better results, and also with the company's operational cash flow generation normalized, the company will see the net debt-to-EBITDA returning to 1.5x.