Unicasa Indústria de Móveis S.A. ($UCAS3)

[indiscernible] [Operator Instructions] We inform you that this conference call is being recorded. and can be accessed at the company's IR website, ri.uniqasamoves.com.br where you'll find the full package of our financial disclosure. [Operator Instructions] We emphasize that the information contained in this presentation and forward-looking statements during the presentation by the company, all participants will be in listen-only mode. Subsequently, we will have a Q&A session. Task questions. Click on the Q&A, I can at the bottom of your screen and typing your question to get in line. We recommend that you ask all your questions at once. We emphasize that the information contained in this presentation and forward-looking statements that might be made during the conference call relating to Unicasa's business outlook, projections and operating and financial targets are based on the beliefs and assumptions of the company's management as well as on information currently available. Forward-looking statements are not a guarantee of performance. They involve risks, uncertainties and assumptions as they refer to future events, and therefore, depend on circumstances that may or may not occur. Investors should understand that general economic conditions, market conditions and other operating factors may affect the company's future performance and lead to results that differ materially from those expressed in such forward-looking statements. Today, we have with us Mr. Guilherme Possebon de Oliveira, Investor Relations Officer. Now I will turn the floor to Mr. Oliveira to start the presentation.

Good afternoon. Let's start on Slide 4, where we can see that the company's consolidated revenue declined by 5%, primarily due to the performance of multi-brand stores in the export segment. In exports, the decline stems mainly from the North American market, which saw lower-than-expected sales and deliveries. A trend also observed in our company-owned stores in the United States. In terms of sellout, we saw growth in the domestic market, driven by the initiatives we implemented throughout the year of 2025. As for our company-owned stores in the United States, we saw a 92% increase in sellout sales even after accounting for the closure of the Orlando store, the multi-brand segment has been affected by tight credit conditions in the market, reflecting interest rates, which are high and household high levels of debt. In the exclusive stores segment, revenue remained at the same level. The highlight here being a 3.6% growth in same-store sales. Moving on to Slide 5. Here, we have the executive summary for the quarter, where we can see that our gross margin decreased by 2.8 percentage points, mainly due to a lower revenue base to dilute fixed costs, also due to increased depreciation and severance costs of approximately 10% of our direct labor incurred at the end of the quarter. In operating expenses, there are 3 main factors at play here: continuous expenses to serve customers, personnel expenses due to the collective bargaining agreement for the period and an increase in marketing staff for dealer support areas, which was offset by reductions in consulting and downsizing of the new business division as well as the lower U.S. operating expenses due primarily to the reduction in head count following the closure of the Orlando store. First, we ended the quarter with an operating loss of BRL 9.8 million. As regards to cash on Slide 6. the company's operating activities generated BRL 8.3 million, while debt service consumed BRL 5.1 million, and capital expenditures totaled $7.1 million. With that, we would like to thank our shareholders, dealers, employees, suppliers and other stakeholders for another quarter delivered. And I'll turn the floor over to the operator to begin the Q&A session. Thank you very much.

[Operator Instructions] Let's have our first question asked by Mr. [ Jamie ] management mentioned that many deliveries were postponed by customers in the first quarter of 2026. What is the expectation for the reversal of these postponements in the second quarter? And how is this expected to impact revenue recognition in the coming months?

Good afternoon. It's kind of difficult to precise whether we are going to be able to -- or whether the dealers will be able to reverse this and have these deliveries because this is a variable which is controlled by the customers. So I cannot give you any concrete expectation that we will reverse these postponements and carry out these deliveries in Q2. Now having said that, there is a 3-month horizon. So there is a possibility that most of these deliveries will be made. However, I cannot really decides that this will mean a revenue recognition increase in Q2 because in Q2, other postponements may happen. I mentioned that in Q1, this happened a lot. These postponements happened a lot. And I cannot really tell whether this will continue, if this trend will continue in Q2. We will have to wait to verify the possibility of revenue recognition of these postponements or not.

[Operator Instructions] Our next question is from Mr. Marcelo is with a significant increase in the net debt-to-EBITDA ratio, what is the that limit that management considers safe for the coming quarters?

As regards the company's debt, -- the big engine explaining the increase in the net debt-to-EBITDA ratio was the loss was sustained in the quarter, not necessarily an increase in the debt level. That level remained at the same level as the past quarter. We haven't got any target ratio. What we understand is that at the moment, we took on the necessary debt that we thought was needed for the company. And I am convinced that the company's cash generation is healthy to service the debt. In the earnings release, in cash flow, we generated about BRL 8 million in cash in the quarter despite the net loss that we recorded in the quarter. So I understand that the current situation will not prevent the company from servicing the debt that we took.

[Operator Instructions] Our next question was asked by [ Anna ]. You mentioned that sellout was good in this quarter. Could you explain the performance of the company vis-a-vis the company's competitors?

Hello, Anna. Good afternoon. As regards our competition, we have an interpretation, but it's not an official interpretation. These are not audited data, mind you. But based on the information we got, I believe that we are in a better position than our competitors. The first quarter was very challenging in terms of sell-out. -- in the sell-out sales that we did have in the first quarter was the result of considerable work and everything we did during the year of 2025 in terms of product analysis price positioning. So in Q4 of 2025, we made many changes to our products. And these -- this is what gave us some fruits -- and we expect that this will continue as well to drive our performance during the year of 2026. Thank you.

[Operator Instructions] Question from Vanessa. She asks when can we expect that the sell-out performance will translate into revenue at the plant at the manufacturing facility.

Conversion of sellout into revenue here, the factory, it has a number of steps. So it starts with the consumer signing the contract. After they signed the contract, which is the moment when we analyze the sell-out performance of the stores. And after that, there is a step of measurement of the apartment, the environment. And during that measurement step -- or that step varies a lot really depends on delivery, whether the building is erected, already or not? -- and then we have to match all the measurements with the project. Only then do we get the order at the factory. So this takes some time. It ranges from 4 to 6 months. Now, of course, I'm talking about an average time line. Some sales happen before that. Some sales happened after that. So we cannot really say that the sell-out performance in Q1 will be fully reflected in the end of Q3 and beginning of Q4. That's kind of an average calculation. Thank you.

[Operator Instructions] Q&A session is now closed. We would now like to hand over the floor to the company's closing statements.

I would like to thank all of you for joining us. For additional information, please contact our Investor Relations Department. Thank you for joining us for this call, and have a great day.

The earnings conference call for the first quarter of 2026 of Unicasa is now closed. Thank you very much to all participants and have an excellent rest of day. [Statements in English on this transcript were spoken by an interpreter present on the live call.]