Gafisa Group Reports Results For 4Q12 And 2012

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.”

“In 2012 the Company remained at a more measured rate of growth to better match the investment cycle with the return of cash from the previous investment period. Given the focus on cash generation in 2012, Gafisa enters 2013 with a comfortable liquidity position and capital structure, having restructured debt and diversified funding sources and cash facilities. As a result, Gafisa will deliberately accelerate investment in its business in 2013 through land purchases for the Gafisa brand and increased overall launch activity, including the resumption of launches in the Tenda business under a profitable business model and the continued expansion of Alphaville’s growth. This more productive focus on reinvestment will result in less cash generation and stable leverage in 2013, but will expand long-term profitability and maximize Gafisa’s potential under its new structure.”

Operating and Financial Highlights – (R$000, unless otherwise specified)
                 
 

4Q12
3Q12 Q-o-Q(%) 4Q11 Y-o-Y(%) 2012 2011 Y-o-Y(%)
Launches (%Gafisa) 1.489.760 451.943 230% 582.247 156% 2.951.961 3.526.836 -16%
Launches (100%) 1.780.811 841.075 112% 719.973 147% 3.769.788 4.114.978 -8%
Launches, units (%Gafisa) 5.120 1.361 276% 1.256 308% 8.947 11.927 -25%
Launches, units (100%) 6.695 2.362 183% 1.627 311% 12.149 14.085 -14%
Contracted sales (%Gafisa) 905.241 689.331 31% 338.415 167% 2.633.104 3.352.288 -21%
Contracted sales (100%) 1.202.068 900.931 33% 460.430 161% 3.339.664 3.928.850 -15%
Contracted sales, units (% Gafisa) 3.097 1.929 61% -605 -612% 7.157 9.844 -27%
Contracted sales, units (100%) 4.203 2.693 56% -266 -1680% 9.850 12.385 -20%
Contracted sales from Launches (%co) 760.410 447.154 70% 381.140 100% 1.729.560 2.016.037 -14%
Sales over Supply (SoS) % 20,0% 18,7% 7% 8,8% 128% 56,5% 55,2% 2%
Completed Projects (%Gafisa) 1.327.531 953.361 39% 1.322.766 0% 4.583.482 3.698.050 24%
Completed Projects, units (%Gafisa) 9.378 5.531 70% 6.545 43% 27.107 22.422 20%

Note: * The difference btw Gafisa Stake in the projects and 100% is related to Alphaville contribution in the mix , business unit where the partner is the landowner.

 
Consolidated Land bank (R$) 18.668.669 17.831.913 5% 22.244.163 -16% 18.668.669 22.244.163 -16%
Potential Units 87.742 85.525 3% 104.184 -16% 87.742 104.184 -16%
Number of Projects / Phases 123 121 2% 203 -39% 123 203 -39%
                 
Net revenues 920.818 1.064.094 -13% 351.421 162% 3.953.282 2.940.506 34%
Gross profit 223.405 308.132 -27% (180.291) -224% 1.012.257 262.168 286%
Gross margin 24,3% 29,0% -470bps -51,3% 7557bps 25,6% 8,9% 1669bps
Adjusted Gross Margin ¹ 27,9% 34,3% -19% -43,0% -165% 30,2% 14,5% 109%
EBITDA (20.111) 105.403 -119% (555.173) -96% 211.248 (559.175) -138%
Adjusted EBITDA ² 33.061 183.144 -82% (506.484) -107% 470.142 (338.635) 239%
Adjusted EBITDA margin ² 3,6% 17,2% -1362bps -144,1% 14771bps 11,89% -12% 2341bps
Adjusted EBITDA margin ² (ex-Tenda) 13.0% 21.8% -872 bps -3.3% 1632 bps 18.3% 10.3% 797 bps
Adjusted Net (loss) profit ² (79.289) 26.218 -402% (798.975) -90% (48.723) (887.905) -95%
Adjusted Net margin ² -8,6% 2,5% -1107bps -227,4% 21874bps -1,2% -30,2% 2896bps
Net (loss) profit (98.875) 4.841 -2142% (818.487) -88% (124.504) (944.868) -87%
EPS (loss) (R$) (0,2285) 0,0112 -2397bps (1,8942) 16657bps (0,2878) (2,1867) 18989bps
Number of shares ('000 final) 432.630 432.272 0% 432.100 0% 432.630 432.100 0%
                 
Revenues to be recognized 3.891.618 3.702.549 5% 4.515.112 -14% 3.891.618 4.515.112 -14%
Results to be recognized ³ 1.517.979 1.311.938 16% 1.558.830 -3% 1.517.979 1.558.830 -3%
REF margin ³ 39,01% 35,43% 357 bps 34,52% 448 bps 39,01% 34,52% 448 bps
                 
Net debt and investor obligations 2.558.765 2.939.417 -13% 3.245.336 -21% 2.558.765 3.245.336 -21%
Cash and cash equivalent 1.681.288 1.234.826 36% 983.660 71% 1.681.288 983.660 71%
Equity 2.544.504 2.637.644 -4% 2.648.473 -4% 2.544.504 2.648.473 -4%
Equity + Minority shareholders 2.692.367 2.771.971 -3% 2.747.094 -2% 2.692.367 2.747.094 -2%
Total assets 9.070.994 9.025.658 1% 9.506.624 -5% 9.070.994 9.506.624 -5%

(Net debt + Obligations) / (Equity + Min)
95,0% 106,0% -1100bps 118,1% -2310bps 95,0% 118,1% -2310bps
Note: Unaudited Financial Operational data
1) Adjusted for capitalized interest

2) EBITDA Earnings before interest, tax, depreciation and amortization. EBITDA Adjusted for expenses on stock option plans (non-cash), capitalized interest and minority shareholders

3) Results to be recognized net of PIS/Cofins - 3.65%; excludes the AVP method introduced by Law nº 11,638

4) Note: During 2Q12, Tenda land bank was readjusted to focus on core regions, 3Q12 all remaining non-strategic land bank were excluded

Nm = not meaningful

 

About Gafisa

Gafisa is a leading diversified national homebuilder serving all demographic segments of the Brazilian market. Established over 57 years ago, we have completed and sold more than 1,000 developments and built more than 12 million square meters of housing only under Gafisa’s brand, more than any other residential development company in Brazil. Recognized as one of the foremost professionally managed homebuilders, "Gafisa" is also one of the most respected and best-known brands in the real estate market, recognized among potential homebuyers, borrowers, lenders, landowners, competitors, and investors for its quality, consistency, and professionalism. Our pre-eminent brands include Tenda, serving the affordable/entry level housing segment, and Gafisa and Alphaville, which offer a variety of residential options to the mid to higher-income segments. Gafisa S.A. is traded on the Novo Mercado of the BM&FBOVESPA (BOVESPA:GFSA3) and on the New York Stock Exchange (NYSE:GFA).

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