Gafisa S.A. (Bovespa: GFSA3; NYSE: GFA), Brazil’s leading diversified national homebuilder, has reported financial results for the fourth quarter and full year ended December 31, 2012.
Fourth quarter and full year financial results can be found on the Company’s website ( www.gafisa.com.br/ir) and with the Brazilian Comissao de Valores Mobiliarios (CVM).
- Gafisa Group unit deliveries increased 43% y-o-y to 9,378 in 4Q12
- 2012 unit deliveries increased 20% y-o-y and exceeded the upper end of full-year guidance
- Consolidated free cash generation was positive at R$381 million in 4Q12
- Operational consolidated cash flow reached R$1.04 billion in 2012, exceeding the upper end of increased full-year guidance of R$600 – R$800 million
- Launches reached R$2.95 billion, in line with the upper end of guidance, while sales totaled R$2.63 billion in 2012
- Consolidated sales velocity reached 20% in 4Q12, or 25% ex-Tenda
Duilio Calciolari, Chief Executive Officer, said: “Gafisa’s 2012 operational results exceeded guidance set in the turnaround strategy as we successfully executed significant structural and operational changes. Our main objective for the year was to generate cash through the delivery of units. I am pleased to report that operational consolidated operational cash flow of R$1.04 billion surpassed the increased 2012 guidance range set in the third quarter of R$600-800 million.”
“Operating results, as indicated in the preview published in January 2013, are not yet all reflected in the financial statements as margins continue to be impacted by the resolution of legacy projects and structural changes made to restore profitability. We expect to conclude the delivery of the Gafisa segment projects launched in non-core markets in 2013 and the majority of the remaining Tenda projects in 2013, with a small number slated for early 2014. The successful implementation of corrective measures, including the appointment of divisional executive officers responsible for improved profitability, has positioned the Company for long-term profitable growth.”