Gafisa S.A. (Bovespa: GFSA3; NYSE: GFA), Brazil’s leading diversified national homebuilder, today announced operational results for the quarter ending June 30, 2012.
Duilio Calciolari, Chief Executive Officer, said: “The first half results indicate that our turnaround strategy is on track with improved operating performance. We are making progress against all of the targets which Gafisa Group set in the Business Plan for each brand. The Gafisa Group is generating cash from its core business; we have resold 62% of cancelled Tenda units within the 1H12 and achieved a 64% increase in unit deliveries in the 1H12, which is in line with full year guidance of 22.000 to 26.000 units.”
“First-half launches represent 34% of the mid-range of full-year launch guidance of R$2.7 to R$3.3 billion, and are in keeping with seasonally lower launches in the first six months of the year. Gafisa continues to experience good demand for middle and middle to high income products represented by the Gafisa and Alphaville brands, which led to sales of R$614.6 million during the quarter, with a consolidated sales velocity of launches of 51.6% in the first half. In keeping with a narrowed geographic focus, São Paulo accounted for 100% of the R$680.6 million launches in the Gafisa segment during the first half.”
Gafisa Group is Generating Cash From its Core Business
The Gafisa Group ended the second quarter with more than R$1.02 billion in preliminary cash and cash equivalents, a sequential improvement from the R$947.1 million at the end of 1Q12. Preliminary net debt was R$3.17 billion at the end of the 2Q12, a R$150 million reduction from R$3.32 billion as of the end of 1Q12. As a consequence, preliminary consolidated cash generation (cash burn) was positive at approximately R$150 million in 2Q12, leading to a 1H12 preliminary number of R$75 million. The operational consolidated cash flow reached approximately R$300 million in 1H12, 50% of the mid-range guidance for the full year.