Good morning, and welcome to the Earnings Release of Movida to discuss the fourth quarter and the complete year of 2021. We have here with us today Renato Franklin, CEO, and Edmar Neto, CFO and IRO. All participants are connected in listen-only mode. Later, we are going to start the Q&A session when further instructions will be provided. If you need any support during the conference call, please ask for help of an operator by pressing star zero. Before proceeding, let me mention that forward-looking statements are based on the beliefs and assumptions of Movida management and on information currently available to the company.
They involve risks, uncertainties, and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur in the future. As such, investors should understand that general economic conditions, industry conditions, and other operating factors could also affect the future results of Movida and could cause results materially different from those expressed in such forward-looking statements. I would like now to turn the conference over to Mr. Renato Franklin. You, please start.
Thank you very much. Good morning, everyone. Welcome to our Conference Call to present the earnings of 2021 and the fourth quarter of 2021. Once again, this year was marked by records in all our business lines. I would like to highlight our net income, 251% increase totaling BRL 819 million for the year in 2021. We had grown throughout the year and improved the company, reducing costs with discipline focused on management and with execution, reaching BRL 277 million in the fourth quarter. Annualized it goes over BRL 1 billion for the second time, getting to BRL 1.1 billion.
Operating results measured by EBITDA. Our EBITDA showed 130% growth, BRL 2.1 billion in 2021. In the fourth quarter, BRL 777 million or BRL 3 billion annualized. If we consider just the rental, BRL 1.5 billion came from Rent-a-Car. In the last quarter, BRL 600 million came from Rent-a-Car. Annualized only Rent-a-Car, it's BRL 2.5 billion. What is my highlight? There has been a growth in the fourth quarter. Even the number which is annualized, if we look the operating fleet on the left, 127,000 cars, 150,000 the fourth quarter. The fleet in the end of the period was 187,000 cars- 37,000 cars more than the average fleet in the year half.
We've already had a contracted amount, so showing the operating results and the annualized results probably will expand further generating more cash to our company. In the slide, we can also see our commitment with generation of result. ROIC of 15%, 29% ROE. Those are records in this kind of production. Ten percentage point of spread. This is the message I would like to share with you. It is a transformation that Movida has experienced. It's a new level of a company. It's a new level of growth and profitability.
They are all supported by the structural reorganization of the company, more maturity and compliance of our position working with individuals right from the beginning, focusing on services to provide better experiences to our clients related with new consumption habits that have been changed through the pandemic. This is why Movida had been growing enormously. I would like to thank our team which is passionate for what it does, getting adapted, making a difference during moments of difficulty, generating more value to all stakeholders, our investors, our staff, suppliers, and the whole ecosystem where we work. I would like to invite you all to go to the next slide four, where we can speak about our fleet evolution.
68,000 cars, we had a growth in the year. It is organic growth, very strong growth. We are the company that has grown the most, much above the market average, 187,000 cars. There are two points to highlight here. First, transformation in business lines in long-term contracts, which is here under GTF, so private, corporate fleet, 0 km for individuals, and our long-term contracts for mixed economy companies and publicly held companies. Completely different company level of scale. We can gain synergy, efficiency and three different avenues of growth, twice larger, but being able to grow three times more. Private fleet and 0 km .
In dark orange, we can see the Rent-a-Car. Our real DNA serving individuals, and new habits have determined the new demand. We charge a fair price and we keep on expanding the company . 27% growth. In the fourth quarter 2020, there was an expansion because people resumed traveling. Bringing strong growth in Rent-a-Car, in fleet and in revenues. Let me make one more comment because I think some people just look at our DVAs. Added value demonstration BRL 2.6 billion is the result of 2021, three times higher than 2020.
We can compare against our competitive peers, so you can see our strong trend of growth for the company. Let me now take you to slide five and go back to the topics that we have been addressing since the third quarter, listening to your concerns and something that we have highlighted during Movida Day, the fundamental aspects and what we've been doing. First pillar, price transformation. Our efficiency in pricing and what we have been applied means a higher average daily in Rent -a -Car, getting to BRL 119 in the fourth quarter 2021, transformational.
I can tell you that the trend is exactly the same, January similar to December. Seasonality is different in the first quarter, of course. First quarter strong, and then it just gets close, and it comes to the end of Carnival. Carnival in February, very similar to the year-end and New Year celebration, but we'll want to really keep on dealing with that, dealing with the price increases of cars and the interest rates, making sure that the investments we are making make sense. We can see the average ticket of BRL 1,500, but new contracts are being negotiated at over BRL 2,300.
Really increasing the profitability on invested capital, ensuring a generation of value on average for 30-month contracts. We can keep on making investments. Our business plan makes sense, even though buy more added value cars, there is a demand for these cars. We also have accounted for the increase in interest rate. Second pillar, providing vehicles. Well, we've managed to acquire more cars. Then we wondered, well, is that the right strategy? Oh, yes, we have made the right strategy. We can see cars purchased during 2021 already have had an increase in their price, 16% increase if we consider the current price list of cars.
They kept on increasing their prices. There is an inflation over brand-new cars, and used cars have also followed the same kind of valuation. We've purchased 91,000 new cars and we have contracts with nine new brands, some also premium brands. Our business plan for 2022 in terms of provision of cars is fully contracted and agreed, and it has been really met by the car makers, even delivering some of them before what we had expected. Nine new prices you've paid. Is there a demand for new prices? Oh, yes, demand trends.
The new habits are really driving the individuals. People are working from home. They can sometimes travel on Thursday and come back on Monday. There is a change in culture. People are no longer willing to have a car, own a car, especially younger generations. Some more experienced older generations have also been following. Sometimes they have just one car, they own just one car at home and rent a larger car when they are traveling, migrating from purchasing a brand-new car to renting a brand-new car.
We've seen this trend expanding in Brazil. There are 2 million cars sold every year in the Rent -a -Car market. There is a potential growth that we can anticipate, something that really makes us very confident in our mid and long-term business strategy. We have a different position, and today we have the largest fleet of electric cars in the market. Similarly, when we launched the Audi brand, we said, "Well, is it going to change completely 600 electric cars? Will it change the market?" Of course not. That will attract clients out of curiosity. They want to rent an electric car.
We are known as to being the avant-garde and really transforming the market. We've been growing 17% in our daily volumes, expanding the stores. If you have more channels, you can bring more clients in, and then we can always charge the fair car. Fourth pillar, well, how are you going to sell the cars if you've paid more? Here we have a structural advantage of Movida. We have the newest fleet in the market, and we're widely diversified. We can see that through our purchases. In addition, something is really different.
We take the moment of the economy that really provided us opening a store where it used to be car dealers. The experience of Movida in used car sales is just so comfortable and it's a different kind of journey really. We've been selling a lot of used cars, and we are delivering products of excellent quality to our clients. We sell to clients with confidence. It's a highly fragmented market, and we have a very comfortable position. The average ticket is BRL 65,000, but it will keep on growing, and we are best positioned to offer that.
Our stores and our websites are prepared for that. We have an e-commerce that can get to cities where we are not represented by stores. These are the four pillars, and if you want, we can go into further details. Now let's see slide six. Considering the strategy, what are the results so far? Growth. Have we been growing? Yes. 76% growth of revenue quarter-over-quarter, 31% year-over-year, annualized BRL 7 billion.
If the fleet was 27% longer than the average on 4Q, we can show a significant growth and a potential of delivering more revenue in 2022 and really improve all business lines, Rent-a-Car, fleet management, and also in used cars. Because we sold fewer cars to meet the needs of our Rent-a-Car clients. Now, as we have purchased more cars, we can sell more of the used cars. EBITDA, we can see a significant growth quarter-over-quarter. In addition to the largest fleet, you can see here a decrease and a number of different initiatives and efficiency.
We can see increasing EBITDA throughout the year. The company will keep on growing, maintaining its conservative leverage below 3x . EBIT, significant improvement, 13 percentage points. Here we are addressing and being conservative in terms of depreciation. Even with a conservative depreciation, EBIT presents significant gain, and it runs in a different level.
Also in terms of net income, we can see a significant expansion, BRL 267 million, twice higher than the fourth quarter 2021 and a completely different level over BRL 1 billion annualized, BRL 1.1 billion, completely different level for our company, even considering the increase in interest rate. Expansion of EBITDA and operational efficiency sets offsets exactly our different interest rates. Let me now hand it over to Edmar, who is going to go into the different business.
Thank you, Renato. Good afternoon, everyone. I'm here on slide seven. Before I talk about the results of each of the business lines, I would like to shed some light on the credit of PIS/COFINS, which was accounted for in December, so only one single month, which has had a positive impact on the earnings of the company at BRL 80 million. BRL 14 million RAC and BRL 4 million in GTF. As of January 2022, it will be. I'm sorry, he's breaking up.
Now let's talk about RAC, Rent-a-Car. There has been a significant improvement in all different lines. Rent-a-Car, when we consider the revenue of the fourth quarter, there was over 50% increase and also year -to -date getting to BRL 1.7 billion, plus annualized showing that it's a company that has over BRL 2 billion from Rent-a-Car. The highlight is the level of 60% EBITDA margin for Rent-a-Car.
Renato will tell you further about that significant improvement since our IPO. We started with 35%, we said we could go to 45%, we said we could go to 50%, and now we are setting a new goal, which is 55%, at least in a period of high seasonality. That annualized amount can get to a 7% margin advantage. 51% EBITDA margin of Rent-a-Car in the year, BRL 876 million, almost doubling the level year-over-year.
Now, speaking of GTF, that's a transformation. 164% growth in the year. We have BRL 1 billion of GTF, which is our commitment. When we really look back retrospectively in 2018 and 2019, we wanted to grow faster, so we are delivering that. The annualized result is BRL 1.5 billion in net revenue. EBITDA, I would like to make a different highlight. Also delivering record margins 70%. PIS/COFINS helps in 3 percentage points. It was just December. When you see, we can really look, we can deliver margins which are at least better than what we have been delivering so far. Year-over-year, it's over 60% margin.
In 2021, EBITDA doubled, so BRL 343 million-BRL 682 million in GTF. The run rate, once again, is a run rate of over BRL 1 billion, confirming what Renato has just said about the transformation that we've been observing. Now to speak of used car sales, there has been a significant growth. It has grown approximately 7% in revenues, because the volume went down. When you look in the quarter, even though we've sold less, there were over BRL 800 million, 65% growth compared to the previous year. In terms of EBITDA, growth of 217% in the quarter and 483% in the year, 525% in 2021.
We're going to build up on it, but that's a temporary benefit. Right from the beginning, we've been observing that we can use this temporary benefit to invest in what's the key activity of our activity, which is Rent-a-Car. We are going to improve service provision and improving our fleet. With that, let me invite to go into the next slide. Here we bring a lens on our Rent-a-Car result, which is exactly the point that we want to reinforce. Our rental activities continued to expand strongly and now at a new level of margins.
Here we bring you the chart that shows the evolution as of the fourth quarter 2019, where we delivered BRL 257 million in the Rent-a-Car business with a margin of 56%. We went through the pandemic, and we were affected, as you know, in the second quarter, and then with a strong recovery, especially now in 2021, we have reached almost BRL 600 million EBITDA only in the Rent-a-Car business. That is not including the used car sales whatsoever. It is growth of 132%. It's important to talk about the performance of GTF with EBITDA growing more than 3x in the period.
Once again, showing that we are being very assertive in our strategy. In the bottom part of the slide, we have a bar that brings us the EBITDA by car, just as a Rent-a-Car business. Again, very strong numbers. This is what we need with the new price levels of assets with growth of more than 47%, showing that our performance at the unit level is also improving at a very significant manner.
We also bring you the used cars on page nine. On the left, we see the evolution of margin. You see margin is starting with almost 12% in fourth quarter 2020, getting to the end of the year with 22% at 4Q 2021. Although we did have a bit of a variation in volumes. What is important to mention here is that along 2022 and 2023, basically the pathway - the road is going to be the opposite. There will be a decrease in margins, but we don't know how much. It's important to show you the following. This is what we bring to you on this table on the right.
Here we have a sensitivity analysis based on the sensitivity of margin, because EBITDA margin is based on gross margin, but also the amounts of cars sold. Remember that we sold 45,000 cars in 2020, which is less than expected, but we didn't have cars to do what we wanted. The volume of cars will go up, and if the margin is kept for a longer time, we can have up to BRL 1 billion in EBITDA, which shows in the first column. However, we believe that margins will be a bit pressured. They are going to decrease a long time.
We are going to go to another level. Certainly, it's not going to be what we had in the past. We are going to continue to have a very high level of margins and EBITDA contribution for the period that I'm talking about, that is the years of 2022 and 2023. Remember that here we are not making a difference in prices for cars. As prices increases with the sales and new acquisitions, we are going to have an even additional contribution. Still talking about assets, we go to page 10, which is basically the same calculation, the same rationale that we brought to you last quarter.
Here we have BRL 11.6 billion in assets, which compares to BRL 5.5 billion a year before. When you think of how much this is worth in the market, then you have an embedded margin, quote-unquote, of 27%-28% that would increase the price of our assets to close to BRL 15 billion. A real transformation. We've doubled the asset base of the company in one year. Undoubtedly, this is a structural change. We bet on that.
Renato mentioned about our purchase strategy. The prices are not going back, the mix is not going back. This is just a new reality. It will help us to cope with the higher interest rates and also with fees that we have advancing a lot as rates that Renato mentioned before. Important to mention is also the breakdown of these assets. Out of the 180,000 cars that we have, 91,000 to be precise, were already purchased in 2021, and they have average appreciation of 16%.
We have other 90,000 cars that were bought before 2021, that is before from 2020 and before, which had an appreciation of 40%, which is depreciation that we had in the last two years. We have a result to see, but it's also a safety cushion for us to cope with the next months and years. Before turning the call back to Renato, I would like to go to slide 11 to talk about our debt payment schedule and cash position. We closed the year with approximately BRL 5.5 billion in cash, which is sufficient to cover our debts for the next four years.
We have an average amortization portfolio of over eight years when you talk about our net debt. Out of the commitments that we have in 2022, 2023 and 2024, they are proportional to our new EBITDA. Renato already mentioned that we are already at BRL 3 billion EBITDA. Again, a completely different level. In addition, we did everything with leverage under control, leverage practically stable throughout the year, although we did have a transformation on the company's asset base.
Finally, I would like to mention that the company, at the end of the year, started to be followed by the three rating agencies, which is an important aspect for our governance. We had upgrades along the year, and now we are a company that is BB- globally. We have debts overseas and A A + locally with a very positive outlook for what is to come. Thank you very much. I'm going to be here for the Q&A session and turn back to Renato.
Thanks, Edmar. Please, I would like you to go to slide 12, just to start thinking about something that we brought in our IPO, but I'm updating. It's been five years as a public company now. The company that has a track record evolution quarter -after -quarter in the past five years with operational evolution and maturity. What is more important here is that we exceeded all our targets for the IPO business plan. Even in the more optimistic scenario, we're not even close to the numbers that we have here.
We are not considering the crisis the country went through, not let alone the pandemic. The highlight is that in crisis is when our team makes the most difference. Our culture, our way of working makes the hugest difference. I'm going to go through those indicators just to show you- total fleet, we had 64,000 cars in 2016. That's the number we used for the business plan in the IPO. We closed at 187,000 cars. That is 50% above the business plan in the IPO. Just for you to see the size of what the discount of Movida is today, that has no sense to me.
Occupancy is at 72%. Everybody said we're crazy because the operational limit at the time was 68%. We are above 80%. EBITDA margin. When we talked about EBITDA margin, everybody was considering the used cars. We talked about 21% consolidated numbers. We are at 39% EBITDA margin consolidated numbers. In the third quarter, we had the highest consolidated EBITDA margin in the market, reflecting everything that we've said since the beginning of IPO. A company with the lowest cost per cars, highest revenue per car, a tax structure that delivers the most value to shareholders.
This is our commitment, and this is what we're building, and this is the transformation that you see in our numbers. Net income, the target was BRL 32 million. We delivered BRL 819 million, plus 60% more efficiency, even more than what we had expected. The company is more stable. GTF, very strong, 50% of the company, and transformation of our balance sheet. This is the gap that is missing for us to close in 2022. This is very important because we closed almost all purchase gaps from what I saw in terms of car prices and everything.
Now we have the gap of capital cost. The wages are going up, the balance sheet is increasing. It's a matter of the time for the market to understand, and we close this gap. A huge transformation, a team that is quick to adjust routes, and that is very strong in execution. I am very honored to work with them all. On the next slide 13, we are going to talk about the topic that is so important to us. This is the qualitative part of our results. Evolution of credit ratings appeared, as Edmar mentioned, but we also have evolution of ESG ratings with important footprints that show that we are on the right path with responsibility.
On the right, we have innovation, our focus on individuals. I had the opportunity of visiting stores throughout Brazil. Last week, I was in the North, Midwest Brazil, and I hear from employees and customers that we once again transformed the consumer journey. We did that in the past with the apps, then with the web check-in, and the last transformation was the opening of contracts with the tablet. No queues, you can do it standing in the yard, everything digital. Innovation recognized by clients.
I heard from more than customers saying, "It's nice that Movida is always the first, and it's always best. It's only when the other is much cheaper that I cannot resist. I say, "But don't you regret?" They say, "Oh, yes, it's not worth it." We have the best price. It's a fair price for a good service with the newest car in the market. Once again, Movida keeping the commitment of delivering more value added to customers.
Along this line, I go to slide fourteen, I'm sorry, which is our last slide. This is the most important slide for us to go through. What do I want to tell you here? We have all strategic pillars that enable us to deliver the results we are. The first is really to conquer, to, you know, bring the customer to us. We have been evolving a lot working with all business lines. Expansion of stores. We have opened new stores preparing for 2022. In 2022, we are going to open new stores for 2023.
We built in advance the structures for the coming years. We are talking about 100 new stores, 80 of Rent-a-Car, 20 of used cars. Not everything this year, but lots of them this year. Working at new, smaller cities that really see the value on what they're doing. Always focusing on generational value. We have a specific partnership with OEMs, the numbers show that. Improving the predictability of revenues, we talked about that. Remember, we have three avenues of growth. We have GTF, also GTF for the private segment and CS Frotas. There is an increase in profitability with the margin consolidated of 31% for 4Q and 45% in 2021.
And, we're going to have more dilution of costs and expenses because of our new scale. We have a very strict model that for us really to be always seeking to reduce costs. That's how we are going to continue. This is our way of being, our culture, which will help us to generate more value than our peers in the market. The transformation of prices, the trend continues. I want to reinforce that.
Our capital structure is already at a whole other level with a very strong balance sheet, with ratings covered by the three agencies, as Edmar mentioned, and our target is now close the gap in the cost of capital in the midterm. There's this work to be done, continue evolving the company. We're very happy with what we achieved so far, which gives us the base to enjoy an even better cycle for the future.
Thank God, without the pandemic, with our people very much engaged. I do not know of any other team that is as engaged as Movida teams. It's a privilege to work with them and with your trust. Thank you very much. We are very happy with what is to come, happy with what we did in the past, but very excited about the future. I say that at 1%, it was a huge transformation. At 2%, it's just double, but still a lot to be done. Thank you very much. We are going to open for the Q&A session.
Ladies and gentlemen, we'll now start the Q&A session. To ask a question, please press star one. Our first question comes from Lucas Barbosa from Santander. Please, Mr. Barbosa, you may go on.
Good morning, Renato, Ed, Camila. Congratulations on your results, and thanks for taking my question. I would like to check two points about depreciation. First, I would like you to tell me what is the depreciation rate of your oldest cars in your fleet. Second, how much you are thinking you are going to have in terms of price increases for the future to calculate depreciation. Do you think that the depreciation is going to be more stable? Or what are your thoughts on that? Thank you very much.
Hi, Lucas. This is Ed. Okay. Basically- a s I mentioned on the slide, talking about that, we expect to have an increase in unit demands and an increase in amounts altogether, which really helps us in the dilution of G&A - S G&A, which is an important factor in terms of depreciation. Therefore, we are adopting depreciation levels close to what we had before the pandemic for all the cars within the company. Consolidated figures is close to 6% when you talk about Rent-a-Car plus GTF, and it would be a bit more than 5% for the Rent-a-Car and about 8% at the GTF segment.
Once again, each new car that comes in is depreciated from zero moment based on these rates. As for the increase in prices, we believe that increase in prices will start to converge to the behavior that we had before the pandemic, that is close to the country's inflation rate, 4%, 5%, to 6%. Our belief is that, you know, the mix between new prices and new contents has already happened in terms of adjustments.
Okay, thank you very much, Edmar. Thanks for your...
Yes.
The next question comes from Guilherme Mendes, J.P. Morgan. Guilherme?
Hi, Renato. Hi, Ed. Good morning. Thank you for taking my question. I have two quick questions. The first about the increase of the daily rates that you had on Rent-a-Car. What is the composition? What is mix, what is interest rate, and what is effectively demand? Secondly, in terms of purchasing cars, thinking about the merger of Localiza and Unidas, what do you expect in the market and the position of Movida for purchase of cars not only in 2022 but also in upcoming years? Thank you.
Well, thank you, Guilherme. Let's first go into the Rent-a-Car. There are some part of mix effect, also group mix, which increases the daily rate. You can see that on the average amount of purchased cars that's going up. Then prices really deal with interest rate. We use the future cover interest rate, putting the prices up. There is no great difference in terms of mix, whether it's monthly basis or on an annual basis. Of course, January and December, the average rate is higher because of seasonality.
As of February, it tends to go down. That's expected throughout the year. Structurally, we've been just using the reference of a car, the price of a car, the same sales channel. The price has been going up because of the increasing interest rate. We've been growing significantly in our direct channel through the website, so the net price is better because we are reducing commission rate. That means higher EBITDA margin.
We've been growing a lot in individuals. Individuals tend to pay higher prices. As such, we can have the highest daily rate in the industry. This is a summary of the factors that impact the rental car rates, and we expect them to be positive throughout the year. In terms of purchase of cars, we do have some advantages. One is a long-term strategy with carmakers. We have interactions with each executives in the carmakers. We have an executive team dealing with them. Structurally, nobody wants to depend just on one player.
The merge is helping us because we buy a lot, buying the whole Sim par ecosystem, and it puts us in a preferred position, even in those which are larger than us in terms of purchase capacity. If there is a merger, all of them say that Movida will have to have an increased volume. We've had higher volumes preparing for the business, and their idea is to have a well-balanced environment. That would be good. Rather than buying 30% or 40% of the share, it could mean maybe 50% share of the procurement. That would be the main key accounts, right? I think the merge between the companies tends to be positive to us.
Great, Renato. Thank you. Have a great day.
Thank you, Guilherme.
The next question comes from Regis Cardoso of Credit Suisse. Mr. Cardoso, please.
Hello. Thank you, Renato and Edmar, for taking my questions. A follow-up about depreciation. The increase in consolidated depreciation as we see it, can it be only due to depreciation of new cars, or is there any impact on cars which were already partially depreciated, marked below the market value? In terms of depreciation of new cars, could you please tell us more about the discount at purchase in a market where there is shortage of new cars? Rent-a- cars have probably worse conditions than what they used to have in the past.
If there is no price increase, maybe you would have to have a higher depreciation rate in percentage points. Let me hear from you so that I can understand the moving parts of the depreciation. Another topic that I would like to address concerns the leverage. Your net debt was BRL 6.6 billion end of quarter. If I'm not mistaken, there was an increase in BRL 1 billion and it also involves suppliers. It's probably related to procurement and receiving of cars in the end of the period because there was a significant increase of your fleet in the end of the period, but not the average operational fleet. I suppose you have received a number of new cars in the end of the period.
With a higher debt and a contingent payment to suppliers, what do you expect to see your leverage and net debt for 2022? Finally, in terms of leverage, I would like to understand more about cost because you have a somewhat expensive net 150% of CDI, some with foreign swap or foreign cash leverage. How do you understand the cost of your current debt? Is there any room for further management and what can be the cost of the capital as your debt position is growing? Maybe you could increase equity, pay the debt and bring down the cost. That's what I want to hear from you.
Regis, this is Edmar speaking. I'm going to start, and then Renato will build up on the item of discount. About depreciation, you are absolutely right. We have an old basis of cars, 50% of our cars were purchased before 2020. The impact of increased depreciation is directly connected to the arrival of new cars at higher prices. A fleet purchased in 2020 at BRL 40,000 or close to it, but today the car we are purchasing costs, what? BRL 90,000. If we're going to use the same rate, 5% for example, the depreciation would have to go up from BRL 2,000 to BRL 2,500.
Everyone is concerned, but this is a natural movement that is going to happen with others after it impacts Movida because we have taken the front position of renewing the fleet. Nobody has the fleet younger, 50% of the fleet newer than one year. We are the only one who have it, or the only one who has it. Now let me talk about dilution. We've sold few cars in 2021, just 45,000. Any modeling that you try to do, you can see that in little time, let's say two or three years, we'll be selling 80,000-90,000 cars. This is really important for dilution and for bringing down SG&A.
You didn't use to cover the industry when we had the IPO. We are talking about SG&A below 7%, and people were very skeptical. Today, for two years we've been running within this range. When you put it in your blender, you see that we can run SG&A at 5% or even lower than that. We are quite comfortable with our initiatives and actions. Concerning leverage, there is an important point here, which is the gain we are going to have in the short term. We've delivered BRL 777 million EBITDA, which is the result of the fourth quarter.
First quarter 2021, it was BRL 305 million EBITDA. It's more than double of the EBITDA of the previous year because we are at a different level, selling more cars, being much more active. Our modeling and our internal calculations can really allow me to comfortably say we are running at a leverage at very close levels to what we've shown. Depending on what happens, we can maybe reduce growth and that would help us reduce leverage quite easily. Now concerning the question about the account of our suppliers, you're right. We've purchased new cars at higher prices. It almost doubled. Likewise, selling cars has also experienced an increase year-over-year.
Even selling fewer cars, we got to BRL 800 million in revenues- BRL 800 million in revenues, I mean. You can see that most of the increase in price had been offset by the sales of used cars. I'm not really discarding the idea, but all our forecasting shows that we can keep on growing at 25-30,000 cars at very comfortable level using our current leverage rates, cost of debt.
Our first mission was to change the profile of amortization to allow the company to execute its strategy of growing faster than other players in a moment of complex market conditions, to say the least. You were right. Some of our debts are quite heavy on us, but we are going to work on managing the liabilities for the upcoming months, and slowly we will adjust our structure considering the cost. You had a number of questions. I hope I have answered all of them. Now I'm going to hand it back to Renato, who's going to talk about the discounts from carmakers.
What's important to know here? First, all carmakers believe that what's going to grow more in terms of volume is direct sales. Nobody believes that they are going to sell more through retail. No, they know they depend on us. They also like the idea of the car through subscription, and they think that can be done with them. When we have the price adjusted, it's always better to be offered more discount, but more than having a higher discount, we like the symmetry of discounts, which was something important for us.
Some cars were paid at a similar price, some of them at a higher price, but sometimes with 2.5% less discount than we wanted. Today, everything is very much aligned. There are two car makers which now have more discount than competitors, but all the others, it's exactly the same according to the car makers and also through the invoices that we can see. There is a gap in procurement of cars. Maybe some different negotiations may be in place, but in December there were some additional discounts in volumes to get some additional volume of cars.
Today in the morning I talked, "So can I buy 500 more cars? Can I have some additional discount?" It does make sense. We've been able to interact with the car makers because they know it's going to be different in the second half of the year. Everyone's looking in the long term as working in partnership and not competing one against them. The discount over the true price, the spread of retail, differently from the price that I pay is what really matters. If the difference goes down, I have to change the depreciation.
If it's the same, I can use what I used to have before the pandemic. The impact has been smaller to us, and it's something that we can address with a fair price. It brings me to my third point. We price the rental based on what we can get in terms of, retail, of Advantage. We don't say, "Let's grow 30% more cars, and then we define the price." It's not that. It's the other way around. I set the price, and then I determine how much I'm going to grow, because it depends on the market.
Will the market pay the price that really is fair and generate value? Fine. If the market does not pay that, then I'm going to grow less. That's very good for operators that have a high demand, indicating we'll have good growth and good significant expansion. For us, Movida's, it has been positive. Closing the gap, it gives us a competitive advantage, and in terms of alliance, we are really well structured.
Great. Thank you very much, Edmar, for your very complete answer. Great results. Thank you.
Our next question comes from Filipe Nielsen from Citibank. Please, Filipe.
Hello, everyone. Good morning. Thanks for taking my question. I have two questions. One, with regard to the competitive scenario, or how you see the entrance of foreign players and partnerships with foreign companies in the local market, and what are the factors that enable you to continue competing with the two larger national players rather than foreign players? I would like to have your view on that. My second question is the following.
This morning, we saw that Cosan rescinded the joint venture with Porto Seguro to expand the car market. Localiza is also forced to sell its cars to some player. In your view, do you think there is any player that is relevant? Who do you think Localiza is going to sell the cars to so that the yield is even?
Well, thanks, Filipe. Well, our market- our business is very complex. It is services with generation of assets, very capital intensive, and with high use of technology. You know, if you got the cases of foreign players coming to Brazil, they all failed. Some other mergers that also went wrong because without scale it's hard to work here, in addition to know-how of working with credit and frauds and prices and et cetera. The business and the markets are very complex in Brazil. I'll give you two answers.
One, I don't see anyone coming in the short term to the country. At the same time, I look at the market and say, "If the market has the potential of growth of 500,000 a year, and the three largest ones are going to grow by, I don't know, 100, 1,000, how about the other 400? And how about in the future when you'll have 10 million? Are we going to have just two, three players?" I don't think so. I think that we are going to see initiatives, but more people failing than succeeding and really becoming a true market player.
The market, you know, has room for more players, but we don't know exactly how this is going to be structured. If you get you know, the cases of Cosan, you know, that's it. A large group that has access to credit, takes a look at the market, see that it's nice, wants to invest it, but then they think it's too much money, it's too much complexity, it's too much risk. I don't know about their strategy, but, you know, it's a market that is hard to operate in.
That's the reality that I see in the market. It's a tough market with very strong entry barriers, but very strong in terms of growth, demand and returns. Therefore, I think that we'll see lots of people trying. All that said, I don't know who is going to buy a business that is just Rent -a -Car. So I really cannot tell about your other question. Thanks for your question anyway.
Thank you. If I could understand just what you said with regards to the first question, do you see any possibility of alliance with foreign players to, I don't know, compete with the new consolidated company in addition to a gain of focus? Do you have any idea of also a partnering with the foreign companies?
We always talk about partnerships and alliances. We have been discussing them for a long time, but nothing in the short term. Lots of ideas. OEMs, both the ones that are in the country and the ones that are abroad, understand that the ecosystem is going to be operated by some kind of alliance, and we are always talking to them. But I think this will happen, but nothing for the short term.
Our next question comes from Victor Mizusaki from Bradesco BBI. Victor.
Good afternoon and congratulations on your results. I have two questions. The first, Edmar, could you please confirm when the CS Frotas report is going to be completed and when we are going to see the benefit of PIS/COFINS taxes? The second question is, taking a look at fleet management and outsourcing, when you take a look at revenue by car and the average purchase price, comparing the first quarter to the third quarter, we see growth of about 10% in these two lines.
However, if we think about new contracts that were added, given that more than 50% of your vehicles in the end of fourth quarter was purchased at an average price of BRL 50,000, it kind of implies that you have an increase in the average rates that is above that. Could you just give us some color about how we see in terms of daily rates increase in GTF and if that will have an impact in the return on invested capital for the future?
Thanks, Victor. This is Ed speaking. Well, to talk about the CS report, we are working on that. We expect it to be released in the short term. You know, as usual, we are going to take it to the tax committee, to the board, and then we are going to implement it. Last year we had a very quick process, and we believe that the decision is going to be made by the first half of the year. This is you know the landscape that we are considering. With GTF, you are right. The price of new contracts with new cars is comparable.
When you get previous c ontracts, almost all of them, except for two, we did not have adjustment with parametric formulas and rates established. With some sites you already have the pass-through of inflation rates. In addition, as we always say, whenever there is an opportunity, we are bringing contracts to fair prices because the contracts were executed in a different reality of prices, and sometimes we can increase them.
If you get a snapshot of my GTF portfolio, compared to the past, we have a higher yield because we have adjustments in the contracts and also ex-contract adjustment, in exchange of inclusion of cars, pricing terms or something. Even just based on the relationship to keep a very good relationship with the clients. That brings a generation of value in the short term. The revenue is closer to new values, and we are preparing to renew with new prices for the future.
Just a follow-up. Just a point to be clear. If you get your average revenue by car in the first quarter of 2021, you're talking about approximately BRL 4,600. In the third, it was 4,200. If you think of new contracts, that is you're talking about buying 10,700 cars that you bought and that you are going to allocate in GTF. So you're talking about an average daily rate of 5,000+. Does it make sense?
Yes. This is what it is. We're talking about the 6,000 for the quarter would be the average amount. It can get to 7,000. On Movida Day, we release this information- m ore than 2,000, then more than 2,300. I'm talking too much. That's it. But anyway, it's good. It will reflect on the yield, and it's going to give us gains of profitability. They're criticizing me for speaking too much.
Okay. Thank you.
Our next question is going to be in English, and it comes from Florencia Mayorga from MetLife.
Hi, guys. Congratulations on this strong result and successful year. I wonder if you can provide any details regarding the tax credits that PIS/COFINS- what's your expectation for this year regarding the tax credits?
Florencia , this is Edmar speaking. I'm going to translate your question into Portuguese, and please, if you need any additional information, let me know. Florence is an investor of ours, and she's asking the following. Just a bit more color on PIS/COFINS credits and how we should consider this subject for the future.
Florencia , we've recognized BRL 18 million only regarding the months of December. BRL 14 million in Rent-a-Car, BRL 4 million in GTF, and we may consider that this benefit is going to be recurrent as of January 2022. Why? Because we have the necessary support to continue with this practice. The amount may vary due to, you know, the coming and going of cars, but the BRL 18 million, I believe, is the floor of what we should be seeing from now on.
There was another question in the call in Portuguese about CS Frotas, and whether it is included in this amount, and the answer is no. CS Frotas is not included. There is an opinion report that is being introduced. We have to submit this report to the tax committee and the board of directors to make a decision until mid-2022. This is positive news. The company was able to respond to the demand quite fast. We already had similar work developed in 2019, and therefore, we were able to respond quite quickly. That's what it is.
Okay. Thank you.
Our next question comes from Jorge Lourenço from Morgan Stanley. Please, Jorge, you may go on.
Good morning, everyone, and thanks for taking my question, and congratulations on your results. My question is with regards to return on investment, invested capital spread, and the returns that you have in the Rent-a-Car business. I think that this is a number that you have mentioned before, but what is the level of yield for the Rent-a-Car business to be able to support the return on invested capital spread, taking into consideration that we should have a normalization of interest rates for the future? Thank you very much.
Well, thanks for your question. Well, I think that you know, yield is going to vary according to the type of service. It's not only yields that have an impact on the return on invested capital. You can have a higher return on investable capital when you have a high yield, but a very severe use. Yields has to address the increase of interest to guarantee the spread that you mentioned.
The yield has to be increased according to the type of service that we offer. According to the type of service, we can have margin gains. In addition to yields, we have gains of scale that helps us to dilute our G&A in Rent-a-Car and GTF business that helps us to increase our return on invested capital. We are very comfortable to have a good return on investable capital and good spread, even considering the interest rates that we see.
Renato and Jorge Lourenço, this is Ed, and I would like to add to the answer, which is the cost discipline of the company that helps drive margins, as Renato mentioned. If you read our press release, we have the history of our costs. In the year 2020, it was BRL 500. Now in 2021, it was BRL 520. So even in a scenario in which costs went up by 30% or some, our unit costs went up less than 5%- 4% to be more precise. So there's a huge effort within the company in operation areas, stores, to really provide us a very lean operation.
99% of our Rent-a-Car fleet is electronic tracing. We have the lowest theft rates, we have the lowest default rates. We have the highest number of digital transactions and hits in which we pay less commission fees with direct channels. Yield is very important, as you mentioned, but in the back office of the company, we have actions on cost and expenses that help us drive returns. Yield is very important, but part of our DNA is really deliver a very competitive company in terms of costs.
Okay. Very clear. Thank you very much.
If there are no further questions, let me now hand it over to the company management for closing remarks.
Well, thank you all very much. I would like to emphasize that the transformation we have experienced is really something major. There are many analyses which have shown that it's a really strong transformation. We hope you're gonna have a different perception of our company. Please brace yourself because we are ready for even a better year in 2022. We are very confident with our business plan for 2022, up to 2024. We are going to grow even faster than what you expect. Thank you very much for your confidence. We still have got a lot to do. Thank you very much for Movida's team who have been working hard and make a difference. Thanks all.
The conference call for the earnings is finished now. Thank you all very much for your participation. Have a great afternoon.