Gafisa Group Reports Results for 1Q13

Gafisa Group Reports Results for 1Q13

SÃO PAULO--(BUSINESS WIRE)-- Gafisa S.A. (Bovespa: GFSA3; NYSE: GFA), Brazil's leading diversified national homebuilder, has reported financial results for the first quarter ended March 31, 2013.

First quarter financial results can be found on the Company's website (www.gafisa.com.br/ir) and with the Brazilian Comissao de Valores Mobiliarios (CVM).

  • Launches totaled R$308 million in 1Q13, a 34% year-over-year decrease, and were broadly in keeping with the proportion of full-year launches historically occurring in the first quarter

  • The Tenda brand was relaunched under its new business model and accounted for 37% of launches

  • Pre-sales totaled R$218 million and gross sales reached R$700 million in 1Q13

  • Inventory at market value declined R$119 million to R$3.5 billion on a sequential basis

  • Gafisa Group delivered 9 projects/phases encompassing 1,300 units during the first quarter, a 79% decrease compared to 1Q12

  • Revenue, recognized by the "PoC" method, decreased 20% year-over-year to R$669 million in 1Q13

  • Adjusted EBITDA was R$68 million in 1Q13, compared to R$100 million in 1Q12

  • Operational cash flow was positive at R$122 million in 1Q13, resulting in cash burn of R$89 million


Duilio Calciolari, Chief Executive Officer, said: "Market conditions were stable in the first quarter and results are in keeping with seasonally lower activity. The high volume of deliveries in the second half of 2012 resulted in increased first quarter sales cancellations, however we are making steady progress on the resale of these units to qualified customers. Inventory sales represented 65% of total sales as we continue to focus on inventory reduction initiatives. Cash generation was impacted by lower launch volumes and expenditures linked to land bank acquisition."

"Our focus in 2013 is on profitable growth in order to capture the full potential of the Gafisa Group's new operating structure. Accordingly, the relaunch of the Tenda brand under a new business model is proceeding in line with plan. Two projects were launched in São Paulo and Salvador in the first quarter, with sales contingent upon the transfer of mortgages to financial institutions. The brand's relaunch forms part of the Company's reinvestment strategy that will expand medium and long-term profitability. Results continue to be impacted by the resolution of Gafisa segment legacy projects launched in non-core markets and the majority of the remaining Tenda projects."

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

1Q13

4Q12

QoQ(%)

1Q12

YoY(%)

Launches (%Gafisa)

307,553

1,489,760

-79%

463,740

-34%

Launches (100%)

391,690

1,780,811

-78%

568,046

-31%

Launches, units (%Gafisa)

1,617

5,120

-68%

1,283

26%

Launches, units (100%)

2,003

6,695

-70%

1,667

20%

Contracted sales (%Gafisa)

218,281

905,241

-76%

408,237

-47%

Contracted sales (100%)

255,929

1,202,068

-79%

507,213

-50%

Contracted sales, units (% Gafisa)

831

3,097

-73%

502

66%

Contracted sales, units (100%)

1,076

4,203

-74%

900

20%

Contracted sales from Launches (%co)

76,276

760,410

-90%

222,944

-66%

Sales Velocity (VSO) %

5.9%

20.0%

-71%

10.4%

-44%

Completed Projects (%Gafisa)

172,590

1,327,531

-87%

1,106,806

-84%

Completed Projects, units (%Gafisa)

1,300

9,378

-86%

6,165

-79%

Consolidated Land bank (R$)

0

18,668,669

-100%

16,759,355

-100%

Potential Units

0

87,742

-100%

83,124

-100%

Number of Projects / Phases

0

123

-100%

59

-100%

Net revenues

668,591

815,071

-18%

831,684

-20%

Gross profit

158,276

221,360

-28%

176,672

-10%

Gross margin

23.7%

27.2%

-349 bps

21.2%

243 bps

Adjusted Gross Margin ¹

28.8%

30.67%

-6%

25.4%

13%

Adjusted EBITDA ²

67,886

32,842

107%

100,335

-32%

Adjusted EBITDA margin ²

10%

4.0%

612 bps

12%

-191 bps

Adjusted Net (loss) profit ²

-40,583

- 78,742

-48%

-18,187

123%

Adjusted Net margin ²

-6.1%

-9.7%

359 bps

-2.2%

-388 bps

Net (loss) profit

-55,473

- 98,875

-44%

-31,515

76%

EPS (loss) (R$)

-0.1285

-22.9%

1000 bps

-0.0729

-556 bps

Number of shares ('000 final)

431,630

432,630

0%

432,099

0%

Revenues to be recognized

3,309,913

3,676,320

-10%

3,562,048

-7%

Results to be recognized ³

1,289,503

1,449,745

-11%

1,261,061

2%

REF margin ³

38.96%

39.4%

-48 bps

35.40%

356 bps

Net debt and investor obligations

2,485,372

2,396,388

4%

3,088,885

-20%

Cash and cash equivalent

1,443,644

1,567,755

-8%

847,121

70%

Equity

2,489,357

2,544,504

-2%

2,623,135

-5%

Equity + Minority shareholders

2,644,543

2,694,888

-2%

2,716,976

-3%

Total assets

8,530,374

8,714,662

-2%

8,768,668

-3%

(Net debt + Obligations) / (Equity + Minorities)

94%

89%

506 bps

114%

-1971 bps

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
Phone: +55 11 3025-9297 / 9242 / 9305
Fax: +55 11 3025-9348
ri@gafisa.com.br
www.gafisa.com.br/ir
or
Media Relations:
Máquina da Notícia Comunicação Integrada
Fernando Kadaoka
Phone: +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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