Gafisa Group Reports Results for 4Q12 and 2012

Gafisa Group Reports Results for 4Q12 and 2012

SÃO PAULO--(BUSINESS WIRE)-- 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 (NYS: GFA) .



Investor Relations:
Gafisa S.A.
Luciana Doria Wilson, +55 11 3025-9297 / 9242 / 9305
Fax: +55 11 3025-9348
ri@gafisa.com.br
Website: www.gafisa.com.br/ir
or
Media Relations:
Máquina da Notícia Comunicação Integrada
Fernando Kadaoka, +55 11 3147-7498
Fax: +55 11 3147-7900
fernando.kadaoka@maquina.inf.br

KEYWORDS: United States Brazil North America South America New York

INDUSTRY KEYWORDS:

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