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

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