Gafisa Group Reports Results for 4Q12 and 2012

  Gafisa Group Reports Results for 4Q12 and 2012

Business Wire

SÃO PAULO -- March 12, 2013

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     1.489.760  451.943    230%     582.247    156%     2.951.961  3.526.836  -16%
(%Gafisa)
Launches     1.780.811  841.075    112%     719.973    147%     3.769.788  4.114.978  -8%
(100%)
Launches,
units        5.120      1.361      276%     1.256      308%     8.947      11.927     -25%
(%Gafisa)
Launches,    6.695      2.362      183%     1.627      311%     12.149     14.085     -14%
units (100%)
Contracted
sales        905.241    689.331    31%      338.415    167%     2.633.104  3.352.288  -21%
(%Gafisa)
Contracted   1.202.068  900.931    33%      460.430    161%     3.339.664  3.928.850  -15%
sales (100%)
Contracted
sales, units 3.097      1.929      61%      -605       -612%    7.157      9.844      -27%
(% Gafisa)
Contracted
sales, units 4.203      2.693      56%      -266       -1680%   9.850      12.385     -20%
(100%)
Contracted
sales from   760.410    447.154    70%      381.140    100%     1.729.560  2.016.037  -14%
Launches
(%co)
Sales over
Supply (SoS) 20,0%      18,7%      7%       8,8%       128%     56,5%      55,2%      2%
%
Completed
Projects     1.327.531  953.361    39%      1.322.766  0%       4.583.482  3.698.050  24%
(%Gafisa)
Completed
Projects,    9.378      5.531      70%      6.545      43%      27.107     22.422     20%
units
(%Gafisa)
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    18.668.669 17.831.913 5%       22.244.163 -16%     18.668.669 22.244.163 -16%
(R$)
Potential    87.742     85.525     3%       104.184    -16%     87.742     104.184    -16%
Units
Number of
Projects /   123        121        2%       203        -39%     123        203        -39%
Phases
                                                                              
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 27,9%      34,3%      -19%     -43,0%     -165%    30,2%      14,5%      109%
¹
EBITDA       (20.111)   105.403    -119%    (555.173)  -96%     211.248    (559.175)  -138%
Adjusted     33.061     183.144    -82%     (506.484)  -107%    470.142    (338.635)  239%
EBITDA ²
Adjusted
EBITDA       3,6%       17,2%      -1362bps -144,1%    14771bps 11,89%     -12%       2341bps
margin ²
Adjusted
EBITDA       13.0%      21.8%      -872 bps -3.3%      1632 bps 18.3%      10.3%      797 bps
margin ²
(ex-Tenda)
Adjusted Net
(loss)       (79.289)   26.218     -402%    (798.975)  -90%     (48.723)   (887.905)  -95%
profit ²
Adjusted Net -8,6%      2,5%       -1107bps -227,4%    21874bps -1,2%      -30,2%     2896bps
margin ²
Net (loss)   (98.875)   4.841      -2142%   (818.487)  -88%     (124.504)  (944.868)  -87%
profit
EPS (loss)   (0,2285)   0,0112     -2397bps (1,8942)   16657bps (0,2878)   (2,1867)   18989bps
(R$)
Number of
shares ('000 432.630    432.272    0%       432.100    0%       432.630    432.100    0%
final)
                                                                              
Revenues to
be           3.891.618  3.702.549  5%       4.515.112  -14%     3.891.618  4.515.112  -14%
recognized
Results to
be           1.517.979  1.311.938  16%      1.558.830  -3%      1.517.979  1.558.830  -3%
recognized ³
REF margin ³ 39,01%     35,43%     357 bps  34,52%     448 bps  39,01%     34,52%     448 bps
                                                                              
Net debt and
investor     2.558.765  2.939.417  -13%     3.245.336  -21%     2.558.765  3.245.336  -21%
obligations
Cash and
cash         1.681.288  1.234.826  36%      983.660    71%      1.681.288  983.660    71%
equivalent
Equity       2.544.504  2.637.644  -4%      2.648.473  -4%      2.544.504  2.648.473  -4%
Equity +
Minority     2.692.367  2.771.971  -3%      2.747.094  -2%      2.692.367  2.747.094  -2%
shareholders
Total assets 9.070.994  9.025.658  1%       9.506.624  -5%      9.070.994  9.506.624  -5%
(Net debt +
Obligations) 95,0%      106,0%     -1100bps 118,1%     -2310bps 95,0%      118,1%     -2310bps
/ (Equity +
Min)
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).

Contact:

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
 
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