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Gafisa Reports Third Quarter 2009 Results
--- Sales reached to R$800 million, a 48% increase over 3Q08 ---
--- EBITDA Grows 157% to R$179 million, 20.4% Margin on Revenue of R$877 million ---
--- Adjusted Net Income of R$ 88.6 million, 10.1% adjusted net margin ---
--- Over R$1.1 billion in Cash and Equivalents ---
FOR IMMEDIATE RELEASE - São Paulo, November 5th, 2009 Gafisa S.A. (Bovespa: GFSA3; NYSE: GFA), Brazils leading diversified national homebuilder, today reported financial results for the third quarter ended September 30, 2009. The financial statements were prepared and presented in accordance with Brazilian GAAP and in Brazilian Reais (R$). Only financial data derived from the Companys accounting system were subject to review by the Companys auditors. Operating and financial information not directly linked to the accounting system (i.e., launches, pre-sales, average sales price, land bank, PSV and others) or non-BR GAAP measures were not reviewed by the auditors. Additionally, financial statements and operating information consolidate the numbers for Gafisa and its subsidiaries, and refer to Gafisas stake (or participation) in its developments. The third quarter of 2008 has been adjusted in accordance with Law 11638, which brings accounting standards closer to the IFRS, for comparison purposes to the third quarter of 2009.
Commenting on the third quarter highlights, Wilson Amaral, CEO of Gafisa, said: The gradual recovery in the economic climate and real estate market during the quarter supported the Companys strong sales and net revenue performance that positively impacted the Companys adjusted EBITDA margin of 20.4%, a 140 basis point increase when compared to the previous quarter. This improvement also reflects Tendas leadership and capacity to innovate in the affordable housing segment as it both doubled its quarterly pre-sales as compared to the prior year.
Amaral added, Through the third quarter of 2009, we proceeded conservatively by prioritizing the sales of inventory and the conservation of cash while we consolidated our scalable operating platform which is able to meet the housing needs of Brazilians through leading industry brands in each segment. We are now poised to accelerate launches in the fourth quarter in all of our companies. We expect total launches to be two times higher than the 3Q09 figure and have already picked up the pace of launches in October which reached R$367 million. Based on our expectations for an active fourth quarter and the performance already achieved through the 3Q08, we reaffirm the guidance for 2009 with consolidated sales in the range of R$2.7 to R$3.2 billion.
Operating & Financial Highlights | ||
IR Contact Luiz Mauricio de Garcia Paula Email: ri@gafisa.com.br IR Website: www.gafisa.com.br/ir 3Q09 Earnings Results Conference Call Friday, November 6, 2009 > In English 9:00 AM US EST 12:00 PM Brasilia Time Phones: +1 800 860-2442 (US only) +1 412 858-4600 (other countries) Code: Gafisa > In Portuguese 7:00 AM US EST 10:00 AM Brasilia Time Phone: +55 (11) 2188-0188 Code: Gafisa |
Pre-sales from the quarters launches and inventory reached R$800.2 million for the quarter, a 48% increase over 3Q08. 9M09 pre-sales was R$2.2 billion, a 12% increase when compared to the same period of last year. |
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Launches totaled R$514.3 million for the quarter, a decline of 43% as compared to the third quarter of 2008. For the fourth quarter of 2009, the Company expects to accelerate launches that could be two times higher than the 3Q09, due to the strong improvement of market conditions. |
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Net operating revenues, recognized by the Percentage of Completion (PoC) method, rose 131% to R$877.1 million from R$378.9 million in the 3Q08. |
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3Q09 Adjusted EBITDA reached R$179.1 million (20.4% margin), a 157% increase compared to Adjusted EBITDA of R$69.8 million (19.0% margin) reached in 3Q08, mainly due to the strong performance of Gafisa and Tendas improved results. |
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Other operating net expense was R$40.0 million, mainly due to a contingency related to Gafisas previous shareholder. |
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Net Income before minorities and stock option expenses was R$88.6 million for the quarter, (10.1% adjusted net margin), an increase of 136% compared with R$37.6 million in 3Q08. |
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The Backlog of Revenues to be recognized under the PoC method reached R$2.9 billion, a 47% increase over 3Q08. The Backlog Margin to be recognized reached 35.0%. |
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Gafisas consolidated land bank was R$15.3 billion at 3Q09, a decline of 6% over 3Q08, reflecting the conservative approach to launches taken through 3Q09. |
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Gafisas consolidated cash position exceeded R$1.1 billion at the end of September, facilitating the Companys ability to fund and execute its growth strategy. | ||
On October 22, the Company announced that it intends to merge into Gafisa all of the shares of its subsidiary, CONSTRUTORA TENDA S.A. |
Page 2 of 25 |
CEO Commentary and Corporate Highlights for 3Q2009 |
The outlook for homebuilders brightened considerably during the third quarter as investor optimism towards Brazil returned and public institutions, such as BNDES and Caixa Economica Federal (CAIXA), played an important role in accelerating the economic recovery and helping to avert a prolonged recession. Doubts about the availability of credit and the sustainability of demand from homebuyers that prevailed during the first part of the year have now largely dissipated and expectations for a sustained and robust growth cycle prevail. Brazils housing deficit remains very real and is estimated at 7 million families today with continued growth of 1.5 million new households per year. Supported by the expansion of real wages, a fall in unemployment rates, and improving consumer confidence, the homebuilding industrys current challenge is to meet that demand quickly and efficiently. At Gafisa, we have put in place an operational platform that allows for scalability to meet demand, invested in human capital, optimized our balance sheet and consolidated our leading brands that serve a cross-segment of Brazils population, all to facilitate our growth plan. We have the infrastructure in place to significantly increase our launch capacity in the fourth quarter of the year and look forward to a strong 2010.
The operating environment is favorable and bodes well for all homebuilders. With three investment grade ratings now in place from Standard & Poors, Moodys and Fitch, a historically low Central Bank Selic rate at just 8.75%, and continued normalization of credit markets evidenced by the success of a number of recent equity and debt offerings, it appears that adequate levels of financing are available from an array of sources. At the same time, CAIXA has renewed its commitment to providing flexible and affordable financing by adding R$3 billion of FGTS funding for a total of R$6 billion for homebuilding. These funds are available to accelerate the construction process in order to achieve their goal of 1 million affordable entry-level homes by 2010. In addition to TENDAs R$600 million debenture issued under this program earlier in the year, Gafisa expects to close a debenture in the amount of up to R$600 million for financing of units up to R$500,000 throughout the country.
With respect to mortgage availability and affordability, we are seeing very positive signs of renewed capacity from both the commercial banks as well as CAIXA and Banco do Brasil. And, this will benefit many Brazilians as we see an increased pace of overall labor hiring. The Labor Ministry expects the pace of hiring to increase in the fourth quarter after over 253,000 new jobs were created in September 2009, the fastest pace in over a year. Terms and conditions continue to improve for Brazilians acquiring middle and upper segment housing with 30 year mortgages and rates as low as TR + 8% currently available. The pool of funds available for unsubsidized mortgages grew in September due to the all time high savings topping R$4 billion, 65% of which must be used by commercial banks to fund mortgages. As well, at the beginning of the fourth quarter, the affordable entry-level segment received a boost with the governments announcement of a significant expansion in the number of cities eligible to receive subsidies and raising the unit price caps for most cities. This is expected to result in providing access to an additional 39 million more inhabitants across the country to first time homes. For 2010, we expect additional funding of R$ 7 billion to be committed to the MCMV program based on the Planning Ministrys proposal which is included in the Congressional budget for next year.
At Gafisa, we have spent the last four years building a solid platform to serve the diverse housing needs of Brazils families. TENDA, which has spent much of the year restructuring and optimizing operations, putting a solid funding capacity in place, solidifying relationships with CAIXA, and launching innovative products for its market is poised to capture the enormous opportunity at the lower end of the market. Alphaville and Gafisa, which through the first half of 2009 operated conservatively given the global financial crisis, are now geared up to accelerate launches for the fourth quarter to meet the renewed demand of the mid and upper end segments representing a market potential of R$100 billion per year. With the World Cup to be held in Brazil and the Olympics in Rio de Janeiro, there will be very sizeable investments in infrastructure. We expect to benefit from our strong position in all segments and leverage our strong land bank and network of relationships in that state going forward.
On October 22th we announced our intention to fully incorporate Tenda, which will provide reductions in costs and SG&A expenses, among other benefits to the combined companies, adding value for both Gafisas and Tendas shareholders. According to the preliminary timeline, we expect to have the final approval by the end of the year. Based on our strategy and the Companys developments, we believe that we are well-positioned to continue to fund future growth. On a consolidated basis we ended the quarter with $1.1 billion in cash and our financing capacity could soon increase with the issuance of a debenture from CAIXA of up to R$600 million.
In summary, we are very optimistic about the opportunities in our sector and for Brazil overall. Gafisas geographic and segment diversification strategies give it flexibility in execution, as does our investment in human talent which includes over 450 engineers in training and another 250 in the field managing over 250 projects throughout the country. Our combination of agility and scale, backed by a solid balance sheet, large land reserves, and a commitment to human talent will ensure the Companys ability to continue to grow and deliver high returns for our shareholders, while also helping to bridge the gap for needed housing in Brazil.
Wilson Amaral
CEO -- Gafisa S.A.
Page 3 of 25 |
Recent Developments |
Strong Sales Performance of Mid/Mid-high Segments: Sales during the quarter continued to be driven by all segments of Gafisas product portfolio. In addition, Gafisa continues to experience strong sales of the mid/mid-high level products of Gafisa and Alphaville. Indicative of the demand recovery at the mid and higher end, were our third quarter launches in São Paulo and Salvador. Already 100% sold, the Magno project in São Paulo which was launched in September will accelerate the start of construction by two months. And, in Salvador, mid-level developments Acupe and Brotas, experienced an 85% sales rate within the first month and a sell-out on its first day of launch, respectively.
Affordable Entry-Level Segment: After a strong sales recovery during the second quarter, bolstered by the announcement and associated marketing of the government backed Minha Casa Minha Vida (MCMV) program to boost the construction and sales of affordable entry-level housing, TENDA was able to maintain a similarity brisk level of sales during the third quarter at R$358 million on 4.114 units of sales at an average price of approximately R$87 thousand. With the lowest price points in the industry, TENDAs customers are able to benefit from the strong subsidies provided by the MCMV housing program. Additionally, an October 1st announcement by the government expanded the number of cities currently eligible to receive subsidies and raised the unit price caps for most cities resulting in a larger share of the population that will now be able to access subsidies to purchase their first homes. The announcement included additional geographic expansion beginning in January 2010 bringing to 14 the number of state capitals with a unit price cap to be raised to R$130,000. Currently the only three capitals eligible at that level are São Paulo, Rio and Brasilia. With a national presence and designation as a CAIXA Bank Representative in 6 regions, TENDA is well-positioned to leverage this expanded opportunity for growth.
TENDA and CAIXA: TENDA is currently certified as a banking representative in six major regions (São Paulo, Rio de Janeiro, Minas Gerais, Rio Grande do Sul, Distrito Federal and Baixada Santista). Approximately 77% of Tendas Pre-Sales in the 3Q09 took place in these key regions. TENDA is in the process of expanding its certification as a bank representative in other regions where it currently operate to continue to facilitate a more efficient sales and financing process.
Diversified Geographies and Products: In December 2006, the Gafisa-brand, higher income product represented 100% of the Companys revenues, pre-sales and launches and the Company was present in 10 states and 16 cities with a total of 70 developments. At the end of the third quarter 2009, a more diversified and balanced portfolio prevailed. Gafisas mid/mid-high products represent 38% of launches and 48% of pre-sales, while TENDAs affordable offerings represent 56% of launches and 45% of pre-sales. The Companys well-known brands are now present in 21 states.
Execution Capacity: During the quarter, Gafisa and its subsidiaries managed the construction of 250 projects in 100 cities. The national work force is bolstered by Gafisas focus on recruitment and high quality training. The Company currently has over 450 engineers in training and 250 in the field managing construction projects. The Companys renowned management training program brings in up to 40 young leaders for 2010 to be deployed throughout the organization and its subsidiaries.
R$600 Million Debenture: On October 15th, 2009 Gafisa called for an Extraordinary General Shareholders Meeting to approve the issuance of a debenture from CAIXA in the amount of up to R$600 million to fund additional projects. Final terms are expected to be announced shortly. The debenture will act as a revolving line of credit, allowing Gafisa to fund up to 90% of the total project cost including land and construction costs of units up to R$500,000 in sales price. Financing terms will depend on the number of units priced up to R$130,000 with debenture proceeds to carry a rate of TR+8% and units of R$130,000 to R$500,000 with debenture proceeds to carry a rate of TR+10%. Projects will be utilized as a financing guarantee and the transaction is expected to be completed and start to fund during the fourth quarter. Gafisa is a beneficiary of the Governments recently renewed commitment to funding the construction of affordable homes by doubling to R$6 billion the amount of FGTS funds available for use to finance home building.
Merger of All TENDAs Shares: On October 22, the Company announced that it intends to merge all of its subsidiary CONSTRUTORA TENDA S.A.s shares into Gafisa which currently controls 60% of TENDA. The transaction is expected to result in significant scale advantages and reductions in costs and SG&A expenses, among other benefits to the combined companies. An independent special committee of TENDAs was formed to evaluate the transaction and Gafisa expects to present to its shareholders for approval the terms of the transaction by the end of 2009.
Page 4 of 25 |
Operating and Financial Highlights (R$000) | 3Q09 | 3Q08 | Var. (%) | 9M09 | 9M08 | Var. (%) | ||||||
Launches (%Gafisa) | 514,346 | 898,657 | -42.8% | 1,300,871 | 3,525,380 | -63.1% | ||||||
Launches (100%) 1) | 606,463 | 1,040,362 | -41.7% | 1,527,298 | 4,153,232 | -63.2% | ||||||
Launches, units (%Gafisa) | 3,621 | 5,341 | -32.2% | 6,930 | 25,890 | -73.2% | ||||||
Launches, units (100%) 1) | 3,931 | 5,934 | -33.8% | 7,724 | 28,475 | -72.9% | ||||||
Contracted sales (%Gafisa) | 800,247 | 540,993 | 47.9% | 2,194,124 | 1,962,368 | 11.8% | ||||||
Contracted sales (100%) 1) | 961,238 | 650,865 | 47.7% | 2,587,790 | 2,348,461 | 10.2% | ||||||
Contracted sales, units (% Gafisa) | 5,545 | 3,455 | 60.5% | 15,520 | 12,967 | 19.7% | ||||||
Contracted sales, units (100%) 1) | 6,340 | 3,900 | 62.6% | 17,251 | 14,433 | 19.5% | ||||||
Net revenues | 877,101 | 378,986 | 131.4% | 2,124,806 | 1,192,560 | 78.2% | ||||||
Gross profit | 255,174 | 132,622 | 92.4% | 601,166 | 378,359 | 58.9% | ||||||
Gross margin | 29.1% | 35.0% | -590 bps | 28.3% | 31.7% | -343 bps | ||||||
Adjusted Gross Margin 2) | 31.6% | 36.7% | -508 bps | 31.2% | 34.2% | -300 bps | ||||||
Adjusted EBITDA 3) | 179,140 | 69,788 | 156.7% | 429,754 | 218,200 | 97.0% | ||||||
Adjusted EBITDA margin 3) | 20.4% | 18.4% | 201 bps | 20.2% | 18.3% | 193 bps | ||||||
Adjusted Net profit 4) | 88,574 | 37,569 | 135.8% | 226,751 | 149,167 | 52.0% | ||||||
Adjusted Net margin 4) | 10.1% | 9.9% | 19 bps | 10.7% | 12.5% | -184 bps | ||||||
Net profit | 63,717 | 14,471 | 340.3% | 158,218 | 97,076 | 63.0% | ||||||
EPS (R$) | 0.49 | 0.11 | 338.5% | 1.21 | 0.75 | 62.3% | ||||||
Number of shares ('000 final) | 130,508 | 129,963 | 0.4% | 130,508 | 129,963 | 0.4% | ||||||
Revenues to be recognized | 2,905,355 | 1,971,206 | 47.4% | 2,905,355 | 1,971,206 | 47.4% | ||||||
Results to be recognized 5) | 1,015,495 | 711,313 | 42.8% | 1,015,495 | 711,313 | 42.8% | ||||||
REF margin 5) | 35.0% | 36.1% | -113 bps | 35.0% | 36.1% | -113 bps | ||||||
Net debt and Investor obligations | 1,732,040 | 894,034 | 93.7% | 1,732,040 | 894,034 | 93.7% | ||||||
Cash and availabilities | 1,099,687 | 777,428 | 41.5% | 1,099,687 | 777,428 | 41.5% | ||||||
Equity | 1,783,476 | 1,638,442 | 8.9% | 1,783,476 | 1,638,442 | 8.9% | ||||||
Equity + Minority shareholders | 2,336,365 | 1,684,419 | 38.7% | 2,336,365 | 1,684,419 | 38.7% | ||||||
Total assets | 6,931,539 | 4,468,230 | 55.1% | 6,931,539 | 4,468,230 | 55.1% | ||||||
(Net debt + Obligations) / (Equity + Minorities) | 74.1% | 53.1% | 77.7% | 74.1% | 53.1% | 77.7% | ||||||
1) Gafisa's and Alphaville's numbers at 100% and Tenda's numbers at company stake | ||||||||||||
2) Adjusted for capitalized interest | ||||||||||||
3) Adjusted for expenses with stock options plans (non-cash) | ||||||||||||
4) Adjusted for expenses with stock options plans (non-cash) and minority shareholders | ||||||||||||
5) Results to be recognized net from PIS/Cofins - 3.65%; excludes the AVP method introduced by law 11638 | ||||||||||||
Page 5 of 25 |
Launches |
In the 3Q09, Gafisa took a conservative approach to new launch activity while preparing to increase its launches in the 4Q09 in light of the market recovery. During 3Q09, consolidated launches totaled R$514 million, a decline of 43% as compared to 3Q08. 55% of Gafisa launches were projects with price per unit below R$500 thousand, while nearly 42% of Tendas launches had prices per unit below R$130 thousand. The Gafisa segment was responsible for 38% of launches, Alphaville accounted for 6% and Tenda for the remaining 56%.Company
The tables below detail new projects launched in the third quarters and 9M of 2009 and 2008:
Table 1 - Launches per company per region | ||||||||||||||
%Gafisa - R$000 | 3Q09 | 3Q08 | Var. (%) | 9M09 | 9M08 | Var. (%) | ||||||||
Gafisa | São Paulo | 52,841 | 185,208 | -71% | 368,100 | 637,489 | -42% | |||||||
Rio de Janeiro | - | 137,016 | -100% | 63,202 | 330,900 | -81% | ||||||||
Other | 143,735 | 177,385 | -19% | 255,634 | 617,554 | -59% | ||||||||
Total | 196,576 | 499,609 | -61% | 686,936 | 1,585,943 | -57% | ||||||||
Units | 953 | 1,122 | -15% | 2,335 | 4,234 | -45% | ||||||||
Alphaville | São Paulo | - | - | --- | 46,570 | - | --- | |||||||
Rio de Janeiro | - | - | --- | 35,896 | 29,343 | 22% | ||||||||
Other | 29,135 | 50,937 | -43% | 51,016 | 181,992 | -72% | ||||||||
Total | 29,135 | 50,937 | -43% | 133,482 | 211,335 | -37% | ||||||||
Units | 205 | 286 | -28% | 645 | 1,382 | -53% | ||||||||
Tenda 1) | São Paulo | 115,499 | 128,072 | -10% | 171,256 | 380,271 | -55% | |||||||
Rio de Janeiro | 46,800 | 117,837 | -60% | 129,074 | 453,626 | -72% | ||||||||
Other | 126,336 | 102,201 | 24% | 180,123 | 894,204 | -80% | ||||||||
Total | 288,635 | 348,110 | -17% | 480,453 | 1,728,102 | -72% | ||||||||
Units | 2,463 | 3,933 | -37% | 3,951 | 20,274 | -81% | ||||||||
Consolidated | Total - R$000 | 514,346 | 898,657 | -43% | 1,300,871 | 3,525,380 | -63% | |||||||
Total - Units | 3,621 | 5,341 | -32% | 6,930 | 25,890 | -73% | ||||||||
Table 2 - Launches per company per unit price | ||||||||||||||
%Gafisa - R$000 | 3Q09 | 3Q08 | Var. (%) | 9M09 | 9M08 | Var. (%) | ||||||||
Gafisa | ≤ R$500K | 107,790 | 286,561 | -62% | 323,372 | 1,005,811 | -68% | |||||||
> R$500K | 88,786 | 213,048 | -58% | 363,564 | 580,132 | -37% | ||||||||
Total | 196,576 | 499,609 | -61% | 686,936 | 1,585,943 | -57% | ||||||||
Alphaville | > R$100K; R$500K | 29,135 | 50,937 | -43% | 133,482 | 211,335 | -37% | |||||||
Total | 29,135 | 50,937 | -43% | 133,482 | 211,335 | -37% | ||||||||
Tenda 1) | ≤ R$130K | 121,427 | 310,185 | -61% | 352,715 | 1,589,007 | -78% | |||||||
> R$130K | 167,208 | 37,925 | 341% | 127,739 | 139,094 | -8% | ||||||||
Total | 288,635 | 348,110 | -17% | 480,453 | 1,728,102 | -72% | ||||||||
Consolidated | 514,346 | 898,657 | -43% | 1,300,871 | 3,525,380 | -63% | ||||||||
1) Includes Tenda, Fit Residencial and Bairro Novo in 2008 |
Page 6 of 25 |
Pre-Sales |
Pre-sales (net of cancelations) reached R$800 million, a 48% increase compared to R$541 million in 3Q08, and were equivalent to 156% of launches. The Gafisa segment was responsible for 48% of total pre-sales, while Alphaville and Tenda accounted for 7% and 45% respectively. Considering Gafisas pre-sales, 62% corresponded to units priced below R$500 thousand, while 87% of Tendas pre-sales came from units priced below R$130 thousand. Overall, sales from inventory were robust. Pre-sales for projects launched before 2009 accounted for 61% of our total consolidated sales.
The tables below illustrate a detailed breakdown of our pre-sales for the third quarter and 9M of 2008 and 2009:
Table 3 - Sales per company per region | ||||||||||||||
%Gafisa - R$000 | 3Q09 | 3Q08 | Var. (%) | 9M09 | 9M08 | Var. (%) | ||||||||
Gafisa | São Paulo | 176,404 | 134,978 | 31% | 521,771 | 454,730 | 15% | |||||||
Rio de Janeiro | 58,160 | 57,618 | 1% | 192,898 | 250,911 | -23% | ||||||||
Other | 149,130 | 117,694 | 27% | 328,827 | 339,013 | -3% | ||||||||
Total | 383,694 | 310,290 | 24% | 1,043,496 | 1,044,654 | 0% | ||||||||
Units | 1,150 | 1,054 | 9% | 2,979 | 2,961 | 1% | ||||||||
Alphaville | São Paulo | 10,884 | 954 | 1041% | 54,856 | 6,562 | 736% | |||||||
Rio de Janeiro | 12,334 | 4,978 | 148% | 33,055 | 10,200 | 224% | ||||||||
Other | 34,992 | 46,655 | -25% | 84,637 | 167,722 | -50% | ||||||||
Total | 58,210 | 52,587 | 11% | 172,549 | 184,484 | -6% | ||||||||
Units | 281 | 364 | -23% | 904 | 1,001 | -10% | ||||||||
Tenda 1) | São Paulo | 143,094 | 46,065 | 211% | 365,612 | 191,218 | 91% | |||||||
Rio de Janeiro | 67,861 | 9,660 | 603% | 177,556 | 151,590 | 17% | ||||||||
Other | 147,388 | 122,392 | 20% | 434,910 | 390,422 | 11% | ||||||||
Total | 358,343 | 178,117 | 101% | 978,079 | 733,230 | 33% | ||||||||
Units | 4,114 | 2,036 | 102% | 11,637 | 9,007 | 29% | ||||||||
Consolidated | Total - R$000 | 800,247 | 540,994 | 48% | 2,194,124 | 1,962,368 | 12% | |||||||
Total - Units | 5,545 | 3,455 | 61% | 15,520 | 12,969 | 20% | ||||||||
1) Includes Tenda, Fit Residencial and Bairro Novo in 2008 | ||||||||||||||
Table 4 - Sales per company per unit price - PSV | ||||||||||||||
%Gafisa - R$000 | 3Q09 | 3Q08 | Var. (%) | 9M09 | 9M08 | Var. (%) | ||||||||
Gafisa | ≤ R$500K | 237,137 | 259,225 | -9% | 672,629 | 684,800 | -2% | |||||||
> R$500K | 146,557 | 51,065 | 187% | 370,867 | 359,853 | 3% | ||||||||
Total | 383,694 | 310,290 | 24% | 1,043,496 | 1,044,653 | 0% | ||||||||
Alphaville | > R$100K; ≤ R$500K | 58,210 | 52,587 | 11% | 172,549 | 184,484 | -6% | |||||||
Total | 58,210 | 52,587 | 11% | 172,549 | 184,484 | -6% | ||||||||
Tenda 1) | ≤ R$130K | 311,192 | 119,033 | 161% | 856,926 | 636,504 | 35% | |||||||
> R$130K | 47,151 | 59,083 | -20% | 121,153 | 96,726 | 25% | ||||||||
Total | 358,343 | 178,117 | 101% | 978,079 | 733,230 | 33% | ||||||||
Consolidated | Total | 800,247 | 540,994 | 48% | 2,194,124 | 1,962,368 | 12% | |||||||
1) Includes Tenda, Fit Residencial and Bairro Novo in 2008 |
Page 7 of 25 |
Table 5 - Sales per company per unit price - Units | ||||||||||||||
%Gafisa - Units | 3Q09 | 3Q08 | Var. (%) | 9M09 | 9M08 | Var. (%) | ||||||||
Gafisa | ≤ R$500K | 920 | 986 | -7% | 2,431 | 2,482 | -2% | |||||||
> R$500K | 230 | 68 | 236% | 549 | 479 | 15% | ||||||||
Total | 1,150 | 1,054 | 9% | 2,979 | 2,961 | 1% | ||||||||
Alphaville | > R$100K; ≤ R$500K | 281 | 364 | -23% | 904 | 1,001 | -10% | |||||||
Total | 281 | 364 | -23% | 904 | 1,001 | -10% | ||||||||
Tenda 1) | ≤ R$130K | 3,799 | 1,658 | 129% | 10,846 | 8,404 | 29% | |||||||
> R$130K | 316 | 378 | -17% | 791 | 603 | 31% | ||||||||
Total | 4,114 | 2,036 | 102% | 11,637 | 9,007 | 29% | ||||||||
Consolidated | Total | 5,545 | 3,455 | 61% | 15,520 | 12,969 | 20% | |||||||
1) Includes Tenda, Fit Residencial and Bairro Novo in 2008 |
Sales Velocity |
In this quarter, Tendas sales velocity was affected by the reintroduction of 3,587 units that were previously blocked within the inventory. Such units and the associated projects were examined to determine compliance with Tendas minimum economic and financial performance standards. The PSV of these units was reevaluated to better reflect their market value and also adjusted by the INCC (The National Civil Construction Price Index) for the period. Tenda maintain approximately 3,500 units from projects and phases not available for sale out of the inventory, and will continue to do so until they are available for sale again through Tendas retail store network.
The consolidated company attained a sales velocity of 22.1% in the third quarter of 2009 following a velocity of 24% in the 2Q09. While Gafisa sales velocity increased as compared to the previous period, the overall company velocity is down mainly due to Tendas adjustment and fewer Alphaville launches during the quarter. Without Tendas impact the consolidated sales velocity would be 25%.
Table 6 - Sales velocity per company | ||||||
R$ million | Inventories beginning | *Inventory Release | Inventories end | |||
of period | Launches | Sales | + Other | of period | Sales velocity | |
Gafisa | 1,541.8 | 196.6 | 383.7 | 3.5 | 1,358.1 | 22.0% |
AlphaVille | 203.4 | 29.1 | 58.2 | 6.6 | 180.9 | 24.3% |
Tenda | 934.0 | 288.6 | 358.3 | 411.6 | 1,275.9 | 21.9% |
Total | 2,679.2 | 514.3 | 800.2 | 421.7 | 2,814.9 | 22.1% |
Table 7 - Sales velocity per launch date | |||
3Q09 | |||
Inventories end of | Sales | ||
period | Sales | velocity | |
2009 launches | 630,418 | 310,368 | 33.0% |
2008 launches | 1,374,024 | 234,995 | 14.6% |
2007 launches | 618,656 | 210,753 | 25.4% |
2006 launches | 191,846 | 44,132 | 18.7% |
Total | 2,814,944 | 800,247 | 22.1% |
Operations |
Gafisas geographic reach and execution capacity is substantial. The Company is upholding and extending its reputation for delivering projects according to schedule and budget, and was present in 21 different states, with 250 projects under development at the close of the third quarter.
Gafisa and its subsidiaries continue to selectively launch successful projects in new regions and in multiple market segments, maximizing returns in accordance with market demand.
Completed Projects |
Page 8 of 25 |
During the third quarter, Gafisa completed 26 projects with 2,867 units equivalent to a PSV of R$403 million. Gafisa and Alphaville delivered 5 and 3 projects respectively and Tenda delivered the remaining 18.
Since 1Q09 the Company has delivered 88 projects, representing 8,766 units and a PSV of R$ 1.2 billion.
Table 8 - Completed projects | ||||||||
Number of | PSV | Units | ||||||
Projects |
Completed | (%Gafisa - R$ million) | (%Gafisa) | |||||
Gafisa | 5 | 3Q09 | 170.3 | 392 | ||||
Gafisa | 6 | 2Q09 | 263.7 | 856 | ||||
Gafisa | 5 | 1Q09 | 239.5 | 543 | ||||
Total | 16 | 673.5 | 1,791 | |||||
Alphaville | 3 | 3Q09 | 129.8 | 1,058 | ||||
Alphaville | 1 | 2Q09 | 43.1 | 390 | ||||
Alphaville | 1 | 1Q09 | 31.6 | 654 | ||||
Total | 5 | 204.5 | 2,102 | |||||
Tenda | 18 | 3Q09 | 102.7 | 1,417 | ||||
Tenda | 28 | 2Q09 | 169.3 | 2,151 | ||||
Tenda | 21 | 1Q09 | 95.3 | 1,305 | ||||
Total | 67 | 367.3 | 4,873 | |||||
Consolidated | 88 | 1,245.3 | 8,766 | |||||
Land Bank |
The Companys land bank of approximately R$15.3 billion is composed of 313 different sites in 21 states, equivalent to more than 116 thousand units. In line with our strategy, 85% of our land bank was acquired through swaps which require no cash obligations.
The table below shows a detailed breakdown of our current land bank:
Table 9 - Landbank per company per unit price | ||||||||||||||
R$ Million | PSV | %Swap | %Swap | %Swap | Potential units | Potential units | ||||||||
(%Gafisa) | Total | Units | Financial | (%Gafisa) | (100%) | |||||||||
Gafisa | ≤ R$500K | 4,189.8 | 45% | 37% | 8% | 13.9 | 15.7 | |||||||
> R$500K | 2,903.3 | 35% | 32% | 2% | 4.1 | 4.5 | ||||||||
Total | 7,093.1 | 42% | 37% | 8% | 18.0 | 20.1 | ||||||||
Alphaville | > R$100K; ≤ R$500K | 3,336.0 | 96% | 0% | 96% | 21.4 | 38.7 | |||||||
Total | 3,336.0 | 96% | 0% | 96% | 21.4 | 38.7 | ||||||||
Tenda | ≤ R$130K | 3,896.2 | 28% | 28% | 0% | 49.8 | 49.8 | |||||||
> R$130K | 1,021.5 | 5% | 5% | 0% | 5.8 | 5.8 | ||||||||
Total | 4,917.7 | 22% | 22% | 0% | 55.6 | 55.6 | ||||||||
Consolidated | 15,346.8 | 85% | 3% | 82% | 95.0 | 114.4 | ||||||||
Number of projects | |
Gafisa | 131 |
AlphaVille | 38 |
Tenda | 162 |
Total | 331 |
Page 9 of 25 |
Table 10 - Consolidated landbank per region | ||||||
%Gafisa - PSV | ||||||
(R$000) | 3Q09 | 3Q08 | Var. (%) | |||
São Paulo | 5,787,490 | 6,407,112 | -10% | |||
Rio de Janeiro | 2,354,409 | 3,198,783 | -26% | |||
Alagoas | 1,306,752 | 1,153,761 | 13% | |||
Amazonas | 21,539 | 19,699 | 9% | |||
Bahia | 478,053 | 589,121 | -19% | |||
Ceará | 66,530 | --- | --- | |||
Distrito Federal | 839,579 | 792,580 | 6% | |||
Espírito Santo | 246,727 | 230,749 | 7% | |||
Goiás | 342,617 | 281,016 | 22% | |||
Maranhão | --- | 18,067 | --- | |||
Mato Grosso do Sul | 35,783 | 35,783 | 0% | |||
Minas Gerais | 1,097,882 | 1,535,227 | -28% | |||
Pará | 664,072 | 304,693 | 118% | |||
Paraíba | 32,231 | 19,652 | 64% | |||
Paraná | 287,498 | 46,000 | 525% | |||
Pernambuco | 508,791 | 488,069 | 4% | |||
Piauí | 64,775 | --- | --- | |||
Rio Grande do Norte | 83,955 | 67,224 | 25% | |||
Rio Grande do Sul | 827,962 | 647,074 | 28% | |||
Rondônia | --- | 24,177 | --- | |||
Roraima | 32,249 | 51,120 | -37% | |||
Santa Catarina | 177,000 | 177,000 | 0% | |||
Sergipe | 90,905 | 241,368 | -62% | |||
Total | 15,346,798 | 16,328,274 | -6% |
3Q09 - Revenues |
Due to solid sales performance from 3Q09 launched projects and inventories as well as the accelerated pace of construction, the Company was able to recognize substantial Net operating revenues for 3Q09 which rose by 131% to R$877.1 million from R$378.9 million in 3Q08, with Tenda contributing 29% of the consolidated revenues. Without Tendas participation, Gafisas quarterly operating revenues were R$622 million, an 89% increase over 3Q08.
Revenues for the industry are recognized based on actual cost versus total budgeted costs of land and construction (Percentage of Completion method or PoC method).
The table below presents detailed information about pre-sales and recognized revenues by launch year:
Table 11 - Sales vs. Recognized revenues | ||||||||||||||||||
3Q09 | 9M09 | |||||||||||||||||
Sales | % Sales | Revenues | % Revenues | Sales | % Sales | Revenues | % Revenues | |||||||||||
Gafisa | 2009 launches | 199,368 | 45% | 85,869 | 14% | 419,301 | 34% | 84,697 | 6% | |||||||||
2008 launches | 110,676 | 25% | 153,559 | 25% | 371,213 | 31% | 271,468 | 19% | ||||||||||
2007 launches | 101,037 | 23% | 291,328 | 47% | 259,447 | 21% | 571,887 | 41% | ||||||||||
≤ 2006 launches | 30,823 | 7% | 91,348 | 15% | 166,085 | 14% | 470,657 | 34% | ||||||||||
Total Gafisa | 441,904 | 100% | 622,104 | 100% | 1,216,045 | 100% | 1,398,708 | 100% | ||||||||||
Tenda 1) | Total Tenda | 358,343 | --- | 254,997 | --- | 978,079 | --- | 726,098 | --- | |||||||||
Total | 800,247 | 877,101 | 2,194,124 | 2,124,806 | ||||||||||||||
1) Includes Tenda, Fit Residencial and Bairro Novo in 2008 |
3Q09 - Gross Profits |
On a consolidated basis, Gafisas third quarter gross profit totaled R$255.2 million, an increase of 92% over 3Q08 and 33% over 2Q09, reflecting our continued growth and business expansion. The gross margin for 3Q09 reached 29.1% (31.6% w/o
capitalized interest), 590 basis points lower than in 3Q08, mainly due to the SAP enterprise software implementation that reduced the recognition of construction costs in the 3Q08, subsequently adjusted in the 4Q08. When compared to the 2Q09, the
gross margin was 200 basis points higher, mainly due to the improvement of margins at Gafisa/Alphaville.
Without the swap impact, gross margin would be 30.1% .
Page 10 of 25 |
Table 12 - Capitalized interest | ||||||||
Empresa (R$000) | 3Q09 |
3Q08 |
2Q09 | |||||
Gafisa | Initial balance | 89,983 | 59,338 | 90,081 | ||||
Capitalized interest | 14,806 | 13,571 | 14,936 | |||||
Interest transfered to COGS | (17,787) | (6,377) | (15,034) | |||||
Final balance | 87,002 | 66,531 | 89,983 | |||||
Tenda 1) | Initial balance | 7,255 | 426 | 1,443 | ||||
Capitalized interest | 6,272 | 112 | 10,964 | |||||
Interest transfered to COGS | (4,018) | 50 | (5,152) | |||||
Final balance | 9,509 | 588 | 7,255 | |||||
Consolidado | Initial balance | 97,238 | 59,764 | 91,524 | ||||
Capitalized interest | 21,078 | 13,683 | 25,900 | |||||
Interest transfered to COGS | (21,805) | (6,327) | (20,186) | |||||
Final balance | 96,511 | 67,119 | 97,238 | |||||
1) Includes Tenda, Fit Residencial and Bairro Novo in 2008 |
3Q09 Selling, General, and Administrative Expenses (SG&A) |
Third quarter SG&A increased to R$113.2 million, mainly due to Tendas full consolidation and unique sales model, Gafisas expansion and business diversification strategy. As Tenda sales and revenues ramp up in the following quarters, its sales platform costs will be diluted and additionally, its fixed cost ratios improved. When compared to the 3Q08, the Consolidated Selling Expenses/Sales and also the G&A/Net revenue ratios improved, falling respectively by 60 and 140 basis points.
Table 13 - Sales and G&A Expenses per company | |||||||
Company | 3Q09 |
3Q08 |
9M09 |
9M08 | |||
Gafisa | Selling expenses | 27,701 | 29,265 | 74,446 | 75,781 | ||
G&A expenses | 35,604 | 19,162 | 103,436 | 81,499 | |||
SG&A | 63,305 | 48,426 | 177,882 | 157,279 | |||
Selling expenses / Sales | 6.3% | 8.1% | 6.1% | 6.2% | |||
G&A expenses / Sales | 8.1% | 5.3% | 8.5% | 6.6% | |||
SG&A / Sales | 14.3% | 13.3% | 14.6% | 12.8% | |||
Selling expenses / Net revenues | 4.5% | 8.6% | 5.3% | 6.8% | |||
G&A expenses / Net revenues | 5.7% | 5.6% | 7.4% | 7.3% | |||
SG&A / Net revenues | 10.2% | 14.2% | 12.7% | 14.0% | |||
Tenda 1) | Selling expenses | 27,855 | 5,898 | 78,897 | 11,724 | ||
G&A expenses | 21,997 | 11,151 | 69,396 | 23,491 | |||
SG&A | 49,851 | 17,049 | 148,293 | 35,215 | |||
Selling expenses / Sales | 7.8% | 5.5% | 8.1% | 3.6% | |||
G&A expenses / Sales | 6.1% | 10.5% | 7.1% | 7.1% | |||
SG&A / Sales | 13.9% | 16.0% | 15.2% | 10.7% | |||
Selling expenses / Net revenues | 10.9% | 15.8% | 10.9% | 16.4% | |||
G&A expenses / Net revenues | 8.6% | 29.8% | 9.6% | 32.9% | |||
SG&A / Net revenues | 19.5% | 45.6% | 20.4% | 49.2% | |||
Consolidated | Selling expenses | 55,556 | 35,162 | 153,344 | 87,504 | ||
G&A expenses | 57,601 | 30,313 | 172,832 | 104,990 | |||
SG&A | 113,157 | 65,475 | 326,175 | 192,494 | |||
Selling expenses / Sales | 6.9% | 7.5% | 7.0% | 5.6% | |||
G&A expenses / Sales | 7.2% | 6.5% | 7.9% | 6.7% | |||
SG&A / Sales | 14.1% | 14.0% | 14.9% | 12.3% | |||
Selling expenses / Net revenues | 6.3% | 9.3% | 7.2% | 7.3% | |||
G&A expenses / Net revenues | 6.6% | 8.0% | 8.1% | 8.8% | |||
SG&A / Net revenues | 12.9% | 17.3% | 15.4% | 16.1% | |||
1) Includes Tenda, Fit Residencial and Bairro Novo in 2008 |
Page 11 of 25 |
3Q09 Other Operating Results |
In 3Q09, our results show a positive impact of R$12.6 million, net of provisions, being R$ 52.6 million from the gain related to the incorporation of our subsidiary Fit into Tenda that continued to be amortized over the construction of Fit developments at the time of the incorporation. This gain was partially offset by the provisions related to contingencies associated with a former shareholder of Gafisa, which accounted for R$ 37.8 million of the R$40.0 million in net other operating expenses.
3Q09 Adjusted EBITDA |
We adjust our EBITDA for expenses associated with stock options plans, as it represents a non-cash expense. Our Adjusted EBITDA for the third quarter totaled R$179.1 million, 157% higher than the R$69.8 million for 3Q08, with a consolidated adjusted margin of 20.4%, an increase of 200 basis points from 3Q08. Looking strictly at Gafisas business (Gafisa and Alphaville), the adjusted EBITDA margin reached was to 22.8%, while Tendas improved to 14.5% .
Table 14 - Adjusted EBITDA per company | |||||||
(R$000) | 3T09 |
3T08 |
9M09 |
9M08 | |||
Gafisa | Net Profit | 50,958 | 27,665 | 124,656 | 119,187 | ||
(+) Financial result | 30,781 | (2,994) | 54,324 | (39,670) | |||
(+) Income taxes | 22,238 | 16,163 | 48,615 | 47,512 | |||
(+) Depreciation and Amortization | 5,574 | 9,871 | 13,227 | 26,296 | |||
(+) Capitalized interest | 17,787 | 6,377 | 49,627 | 29,012 | |||
(+) Minority shareholders | 13,612 | 16,425 | 31,186 | 35,540 | |||
EBITDA | 140,950 | 73,508 | 321,635 | 217,878 | |||
(+) Stock option plan expenses | 1,105 | 6,673 | 8,886 | 16,550 | |||
Adjusted EBITDA | 142,055 | 80,181 | 330,522 | 234,428 | |||
Net Revenues | 622,104 | 341,629 | 1,398,708 | 1,121,055 | |||
Adjusted EBITDA margin | 22.8% | 23.5% | 23.6% | 20.9% | |||
Tenda | Net Profit | 12,759 | (13,194) | 33,563 | (22,111) | ||
(+) Financial result | 227 | (433) | (1,387) | (447) | |||
(+) Income taxes | 5,731 | 1,753 | 16,288 | 2,945 | |||
(+) Depreciation and Amortization | 4,210 | 1,531 | 10,940 | 3,309 | |||
(+) Capitalized interest | 4,018 | (50) | 11,369 | 75 | |||
(+) Minority shareholders | 8,495 | - | 22,284 | - | |||
EBITDA | 35,440 | (10,393) | 93,057 | (16,228) | |||
(+) Stock option plan expenses | 1,645 | - | 6,176 | - | |||
Adjusted EBITDA | 37,085 | (10,393) | 99,232 | (16,228) | |||
Net Revenues | 254,997 | 37,357 | 726,098 | 71,504 | |||
Adjusted EBITDA margin | 14.5% | -27.8% | 13.7% | -22.7% | |||
Consolidated | Net Profit | 63,717 | 14,471 | 158,218 | 97,076 | ||
(+) Financial result | 31,008 | (3,427) | 52,937 | (40,117) | |||
(+) Income taxes | 27,969 | 17,916 | 64,903 | 50,456 | |||
(+) Depreciation and Amortization | 9,784 | 11,402 | 24,166 | 29,606 | |||
(+) Capitalized interest | 21,805 | 6,327 | 60,996 | 29,087 | |||
(+) Minority shareholders | 22,107 | 16,425 | 53,471 | 35,540 | |||
EBITDA | 176,390 | 63,114 | 414,692 | 201,649 | |||
(+) Stock option plan expenses | 2,750 | 6,673 | 15,062 | 16,550 | |||
Adjusted EBITDA | 179,140 | 69,788 | 429,754 | 218,200 | |||
Net Revenues | 877,101 | 378,986 | 2,124,806 | 1,192,560 | |||
Adjusted EBITDA margin | 20.4% | 18.4% | 20.2% | 18.3% | |||
Note: Gafisa's EBITDA includes negative goodwill amortization (net of provisions) from deal with Tenda (R$14.7 million in the 3Q09 and R$ 77.2 million in the 9M09) | |||||||
1) Includes Fit Residencial and Bairro Novo in 2008 | |||||||
Note 2: EBITDA Margin without the negative goodwill amortization (net of provisions) from Tenda is 18.7% for the 3Q09 and 16.6% for the 9M09 |
3Q09 - Depreciation and Amortization |
Depreciation and amortization in 3Q09 was R$9.8 million, a decline from the R$11.4 million in 3Q08. The Company no longer amortizes goodwill because of a new accounting rule that requires the assessment of such assets on a yearly basis to determine a reserve for impairment.
3Q09 - Financial Results |
Net financial expenses totaled R$31.0 million in 3Q09, compared to a net financial revenue of R$3.4 million in the 3Q08 and a net expense of R$12.7 in the 2Q09. The increase in the 3Q09 was mainly due the higher net debt position, lower interest capitalization and higher spread between the interest paid and received.
Page 12 of 25 |
3Q09 - Taxes |
Income taxes, social contribution and deferred taxes for 3Q09 amounted to R$28.0 million compared to R$17.9 million in 3Q08. The effective tax rate was 25% in 3Q09 and 37% in 3Q08, when the accounting of land for product swaps was introduced.
3Q09 - Adjusted Net Income |
Net income in 3Q09 was R$63.7 million. However, if we consider the adjusted net income (before deduction of expenses related to minority shareholders and stock options) this figure reached R$88.6 million, representing a growth of R$ 51.0 million as compared to the R$37.6 million in the 3Q08 and an adjusted net margin of 10.1% .
3Q09 - Earnings per Share |
Earnings per share were R$0.49 in 3Q09 compared to R$0.11 3Q08, a 338% increase. Shares outstanding at the end of the period were 130.5 million in 3Q09 and 130.0 million in 3Q08.
Backlog of Revenues and Results |
The backlog of results to be recognized under the PoC method reached R$1.0 billion in 3Q09 from R$1.1 billion in 2Q09. Tendas backlog of results to be recognized comprises 40% of the consolidated amount. The consolidated margin in 3Q09 was 35.0%, reflecting a margin of 36.7% from Gafisa and 32.6% from the Tenda business. Tendas margin was adjusted with additional costs and provisions in specific projects booked in the 3Q09 to better reflect its future margins.
The table below shows our revenues, costs and results to be recognized, as well as the expected margin:
Table 15 - Results to be recognized (REF) | ||||||||||||
Empresa (R$000) | 3Q09 | 3Q08 | 2Q09 | 3Q09 x 3Q08 | 3Q09 x 2Q09 | |||||||
Gafisa | Revenues to be recognized | 1,661 | 1,738 | 1,905 | -4.4% | -12.8% | ||||||
Costs to be recognized | (1,051) | (1,100) | (1,199) | -4.5% | -12.4% | |||||||
Results to be recognized (REF) | 609 | 637 | 706 | -4.4% | -13.6% | |||||||
REF margin | 36.7% | 36.7% | 37.0% | 24 bps | -34 bps | |||||||
Tenda 1) | Revenues to be recognized | 1,245 | 234 | 1,187 | 432.6% | 4.8% | ||||||
Costs to be recognized | (839) | (160) | (768) | 425.3% | 9.2% | |||||||
Results to be recognized (REF) | 406 | 74 | 419 | 448.5% | -3.1% | |||||||
REF margin | 32.6% | 31.7% | 35.3% | 94 bps | -267 bps | |||||||
Consolidado | Revenues to be recognized | 2,905 | 1,971 | 3,092 | 47.4% | -6.0% | ||||||
Costs to be recognized | (1,890) | (1,260) | (1,968) | 50.0% | -4.0% | |||||||
Results to be recognized (REF) | 1,015 | 711 | 1,125 | 42.8% | -9.7% | |||||||
REF margin | 35.0% | 36.1% | 36.4% | -113 bps | -142 bps | |||||||
Note: Revenues to be recognized are net from PIS/Cofins (3.65%); excludes the AVP method introduced by law 11638 1) Includes Fit Residencial and Bairro Novo in 2008 |
Page 13 of 25 |
Balance Sheet |
Cash and Cash Equivalents
On September 30, 2009, cash and cash equivalents were equal to R$1.1 billion, 4% higher than the R$1.05 billion as of June 30, 2009, and 42% higher than the R$777.4 million at the close of 3Q08.
Accounts Receivable
Total accounts receivable increased by 4% to R$6.3 billion as of September 30, 2009, compared to R$6.0 billion in 2Q09, and an increase of 80% as compared to the R$3.5 billion balance one year ago, reflecting Tendas acquisition and higher sales velocity from new launches. Compared to the 3Q08, total receivables increased by 22% at Gafisa.
Table 16 - Total receivables per company | ||||||||||||
(R$000) | 3Q09 | 3Q08 | 2Q09 | 3Q09 x 3Q08 | 3Q09 x 2Q09 | |||||||
Gafisa | Receivables from developments - ST | 794,640 | 544,021 | 461,014 | 46% | 72% | ||||||
Receivables from developments - LT | 894,943 | 1,239,502 | 1,484,807 | -28% | -40% | |||||||
Receivables from PoC - ST | 1,196,271 | 808,619 | 812,278 | 48% | 47% | |||||||
Receivables from PoC - LT | 1,125,009 | 683,844 | 1,205,011 | 65% | -7% | |||||||
Total | 4,010,862 | 3,275,986 | 3,963,110 | 22% | 1% | |||||||
Tenda 1) | Receivables from developments - ST | 779,767 | 88,037 | 931,494 | 786% | -16% | ||||||
Receivables from developments - LT | 512,093 | 72,266 | 255,728 | 609% | 100% | |||||||
Receivables from PoC - ST | 521,839 | 19,750 | 177,048 | 2542% | 195% | |||||||
Receivables from PoC - LT | 537,291 | 49,920 | 718,989 | 976% | -25% | |||||||
Total | 2,350,990 | 229,973 | 2,083,259 | 922% | 13% | |||||||
Consolidado | Receivables from developments - ST | 1,574,407 | 632,058 | 1,392,509 | 149% | 13% | ||||||
Receivables from developments - LT | 1,407,036 | 1,311,768 | 1,740,535 | 7% | -19% | |||||||
Receivables from PoC - ST | 1,718,110 | 828,369 | 989,326 | 107% | 74% | |||||||
Receivables from PoC - LT | 1,662,300 | 733,764 | 1,924,000 | 127% | -14% | |||||||
Total | 6,361,852 | 3,505,959 | 6,046,369 | 81% | 5% | |||||||
Notes: | ||||||||||||
ST = short term; LT = long term | ||||||||||||
Receivables from developments: accounts receivable not yet recognized according to PoC and BRGAAP | ||||||||||||
Receivables from PoC: accounts receivable already recognized according do PoC and BRGAP | ||||||||||||
1) Includes Fit Residencial and Bairro Novo in 2008 |
Table 17 - Total receivables maturity per company | ||||||||||||
(R$000) | Total | Until | Until | Until | Until | After | ||||||
Sep/2010 | Sep/2011 | Sep/2012 | Sep/2013 | Sep/2013 | ||||||||
Gafisa | 4,010,862 | 1,990,869 | 1,321,061 | 379,426 | 128,526 | 190,980 | ||||||
Tenda 1) | 2,350,990 | 1,301,606 | 692,995 | 158,928 | 34,090 | 163,371 | ||||||
Consolidado | 6,361,852 | 3,292,475 | 2,014,056 | 538,354 | 162,616 | 354,351 | ||||||
1) Includes Fit Residencial and Bairro Novo in 2008 |
Page 14 of 25 |
Inventory (Properties for Sale) |
Our inventory, which includes land, developments in progress and finished units, reached R$1.76 billion in 3Q09, a decline of 2% when compared to R$1.79 billion registered in 2Q09. Inventory reduction was mainly driven by our solid sales performance in this quarter. The higher inventory totals for projects that are less than 30% completed partly reflects an uptick in development activity since signs of economic recovery began to emerge toward the end of 2Q09.
Table 18 - Inventories per company | ||||||||||||
(R$000) | 3Q09 | 3Q08 | 2Q09 | 3Q09 x 3Q08 | 3Q09 x 2Q09 | |||||||
Gafisa | Land | 605,201 | 518,745 | 558,984 | 17% | 8% | ||||||
Units under construction | 579,179 | 779,939 | 617,156 | -26% | -6% | |||||||
Completed units | 115,519 | 76,514 | 121,130 | 51% | -5% | |||||||
Total | 1,299,899 | 1,375,198 | 1,297,270 | -5% | 0% | |||||||
Tenda 1) | Land | 181,682 | 121,046 | 188,778 | 50% | -4% | ||||||
Units under construction | 247,863 | 43,477 | 279,744 | 470% | -11% | |||||||
Completed units | 32,988 | - | 24,133 | --- | 37% | |||||||
Total | 462,533 | 164,523 | 492,655 | 181% | -6% | |||||||
Consolidated | Land | 786,883 | 639,791 | 747,762 | 23% | 5% | ||||||
Units under construction | 827,042 | 823,416 | 896,900 | 0% | -8% | |||||||
Completed units | 148,507 | 76,514 | 145,263 | 94% | 2% | |||||||
Total | 1,762,432 | 1,539,721 | 1,789,925 | 14% | -2% | |||||||
1) Includes Fit Residencial and Bairro Novo in 2008 |
Table 19 - Inventories at market value per company | ||||||||||||
PSV - (R$000) | 3Q09 | 3Q08 | 2Q09 | 3Q09 x 3Q08 | 3Q09 x 2Q09 | |||||||
Gafisa | 2009 launches | 293,757 | --- | 293,807 | --- | 0% | ||||||
2008 launches | 686,259 | 1,120,850 | 801,983 | -39% | -14% | |||||||
2007 launches | 380,894 | 579,151 | 444,003 | -34% | -14% | |||||||
2006 and earlier launches | 178,159 | 338,596 | 205,365 | -47% | -13% | |||||||
Total | 1,539,068 | 2,038,597 | 1,745,157 | -25% | -12% | |||||||
Tenda 1) | 2009 launches | 336,661 | --- | 136,859 | --- | --- | ||||||
2008 launches | 687,765 | --- | 483,850 | --- | 42% | |||||||
2007 launches 2) | 237,763 | --- | 313,298 | --- | -24% | |||||||
2006 and earlier launches | 13,687 | --- | na | --- | --- | |||||||
Total | 1,275,876 | 497,200 | 934,007 | -61% | 37% | |||||||
Consolidated | 2009 launches | 630,418 | --- | 430,666 | --- | 46% | ||||||
2008 launches | 1,374,024 | 1,120,850 | 1,285,833 | 23% | 7% | |||||||
2007 launches | 618,656 | 579,151 | 757,301 | 7% | -18% | |||||||
2006 and earlier launches | 191,846 | 338,596 | 205,365 | -43% | -7% | |||||||
Total | 2,814,944 | 2,535,797 | 2,679,165 | 11% | 5% | |||||||
1) Includes Fit Residencial and Bairro Novo in 2008 | ||||||||||||
2) Includes inventories from 2007 and earlier launches |
Page 15 of 25 |
Table 20 - Inventories per company | ||||||||||||
Units | 3Q09 | 3Q08 | 2Q09 | 3Q09 x 3Q08 | 3Q09 x 2Q09 | |||||||
Gafisa | 2009 launches | 964 | --- | 887 | --- | 9% | ||||||
2008 launches | 2,190 | 4,006 | 2,634 | -45% | -17% | |||||||
2007 launches | 1,308 | 2,182 | 1,608 | -40% | -19% | |||||||
2006 and earlier launches | 1,035 | 1,662 | 1,175 | -38% | -12% | |||||||
Total | 5,498 | 7,850 | 6,304 | -30% | -13% | |||||||
Tenda 1) | 2009 launches | 2,621 | --- | 1,273 | --- | --- | ||||||
2008 launches | 6,006 | --- | 4,797 | --- | 25% | |||||||
2007 launches | 3,068 | --- | 3,827 | --- | -20% | |||||||
2006 and earlier launches | 138 | --- | na | --- | --- | |||||||
Total | 11,833 | 2,790 | 9,897 | 324% | 20% | |||||||
Consolidated | 2009 launches | 3,585 | --- | 2,160 | --- | 66% | ||||||
2008 launches | 8,196 | 4,006 | 7,431 | 105% | 10% | |||||||
2007 launches | 4,376 | 2,182 | 5,435 | 101% | -19% | |||||||
2006 and earlier launches | 1,035 | 1,662 | 1,175 | -38% | -12% | |||||||
Total | 17,193 | 10,640 | 16,201 | 62% | 6% | |||||||
1) Includes Fit Residencial and Bairro Novo in 2008 | ||||||||||||
2) Includes inventories from 2007 and earlier launches |
Table 21 - Inventories per conclusion status | ||||||||||||
Company | Not started | Up to 30% constructed |
30% to 70% constructed |
More than 70% constructed |
Finished units | Total | ||||||
Gafisa | 138,764 | 726,801 | 461,319 | 53,407 | 158,776 | 1,539,068 | ||||||
Tenda | 230,090 | 909,452 | 50,226 | 32,960 | 53,148 | 1,275,876 | ||||||
Total | 368,854 | 1,636,253 | 511,545 | 86,367 | 211,925 | 2,814,944 | ||||||
Page 16 of 25 |
Liquidity |
On September 30, 2009, Gafisa had a cash position of R$1.1 billion On the same date, Gafisas debt and obligations to investors totaled R$2,832 million, resulting in a net debt and obligations of R$1,732 million. As of September 30, 2009, 74% of the debt was in the long term and our net debt and obligation to investors to equity and minorities ratio was 74.1% compared to 65.6% in 2Q09. Our cash burn rate increased in the quarter, by 121% from R$111 million in 2Q09 to R$246 million in 3Q09. The increase reflects the resumption of a higher pace of construction in the third quarter and also the fact that in 2Q09 the company completed a R$70 million securitization transaction that offset the use of cash by that amount.
We currently have a total of R$3.5 billion in construction finance lines of credit provided by all of the major banks in Brazil. At this time we have R$2.1 billion in signed contracts and R$284 million in contracts in process, giving us additional availability of R$ 1.1 billion. We do not have exposure to foreign currency through financial instruments. We have R$100 million of debt raised by banks in foreign currency, which were swapped into CDI.
The following tables set forth information on our indebtedness as of September 30, 2009.
Table 22 - Indebtedness and Investor obligations | ||||||||||
Type of obligation (R$000) | 3Q09 | 3Q08 | 2Q09 | 3Q09 x 3Q08 | 3Q09 x 2Q09 | |||||
Debentures | 704,920 | 506,190 | 500,388 | 39% | 41% | |||||
Project financing (SFH) | 394,820 | 276,031 | 306,348 | 43% | 29% | |||||
Working capital | 684,956 | 579,280 | 674,047 | 18% | 2% | |||||
Incorporation of controlling company | --- | 9,961 | 5,399 | --- | --- | |||||
Total debt - Gafisa | 1,784,696 | 1,371,462 | 1,486,182 | 30% | 20% | |||||
Debentures | 619,861 | --- | 607,514 | --- | --- | |||||
Project financing (SFH) | 78,795 | --- | 73,163 | --- | 8% | |||||
Working capital | 48,375 | --- | 75,894 | --- | -36% | |||||
Total debt - Tenda 1) | 747,031 | --- | 756,571 | --- | -1% | |||||
Total consolidated debt | 2,531,727 | 1,371,462 | 2,242,753 | 85% | 13% | |||||
Consolidated cash and availabilities | 1,099,687 | 777,428 | 1,056,312 | 41% | 4% | |||||
Investor Obligations | 300,000 | 300,000 | 300,000 | 0% | 0% | |||||
Net debt and investor obligations | 1,732,040 | 894,034 | 1,486,441 | 94% | 17% | |||||
Equity + Minority shareholders | 2,336,365 | 1,684,419 | 2,264,340 | 39% | 3% | |||||
(Net debt + Obligations) / (Equity + Minorities) | 74.1% | 53.1% | 65.6% | 40% | 13% | |||||
Table 23 - Debt maturity per company | ||||||||||||
Company (R$000) | Total | Until September/2010 |
Until September/2011 |
Until September/2012 |
Until September/2013 |
After September/2013 |
||||||
Debentures | 704,920 | 60,920 | 394,000 | 125,000 | 125,000 | --- | ||||||
Project financing (SFH) | 394,820 | 152,823 | 208,876 | 29,312 | 3,809 | --- | ||||||
Working capital | 684,956 | 359,178 | 249,711 | 36,836 | 36,906 | 2,325 | ||||||
Total debt - Gafisa | 1,784,696 | 572,921 | 852,587 | 191,148 | 165,715 | 2,325 | ||||||
Debentures | 619,861 | 19,861 | --- | --- | 300,000 | 300,000 | ||||||
Project financing (SFH) | 78,795 | 34,584 | 44,211 | --- | --- | --- | ||||||
Working capital | 48,375 | 23,722 | 12,192 | 8,175 | 4,286 | --- | ||||||
Total debt - Tenda 1) | 747,031 | 78,167 | 56,403 | 8,175 | 304,286 | 300,000 | ||||||
Total consolidated debt | 2,531,727 | 651,088 | 908,990 | 199,323 | 470,001 | 302,325 | ||||||
% Total | 26% | 36% | 8% | 19% | 12% | |||||||
Tenda Incorporation |
On October 22nd, we announced our intention to incorporate the remaining 40% of Tendas outstanding shares. Among the benefits for the shareholders of both companies we can highlight: scale gains; increase in operational, commercial and administrative efficiency; optimization of consolidated balance sheet; streamlined administration and increased share liquidity.
In accordance with CVM Guidance 35, an independent committee was created to represent Tenda in the negotiation of the transaction terms with Gafisas Management. Based on historical prices, Gafisas Management believes that an adequate exchange ratio would be between 0.188 and 0.200 of a Gafisa share for each Tenda share.
If the parties achieve satisfactory negotiation terms, according to the anticipated schedule the Extraordinary General Shareholder Meetings to approve the deal could be held until the end of December.
Page 17 of 25 |
Debentures |
On October 15th, 2009, Gafisa called for a General Shareholder meeting to be held on November 16th, 2009, to approve its seventh issuance of debentures by the Company. The debenture is to be non-convertible, issued in one single and indivisible lot with a floating guarantee and additional guarantees (related to the project to be financed), in an amount of up to R$600 million, with a maturity date within 5 years counted from the date of issuance. Registration is to be waived before the Brazilian securities commission.
The debentures covenants are as follows:
Table 24 - Debenture covenants - 4th emission (R$ 240 million) | ||
Debenture covenants - 4th emission - current | Status 1) | |
(Total debt - Project debt - Cash) / (Equity + Minorities 2) ) < 75% | 14.8% | |
(Total receivables + Finished units) / Total debt > 2.0x | 2.6x | |
1) Covenant status on September 30, 2009 | ||
2) Minority shareholders, excluding minorities from FIDC |
Table 25 - Debenture covenants - 5th emission (R$ 250 million) | ||
Debenture covenants - 5th emission - current | Status 1) | |
(Total debt - SFH debt - Cash) / Equity < 75% | 53.7% | |
(Total receivables + Finished units) / (Total debt - Cash) > 2.2x | 4.5x | |
1) Covenant status on September 30, 2009 |
Table 26 - Selected financials for covenant calculation | ||
Financial statements (R$000) | ||
Total debt | 2,531,727 | |
Project debt | 619,861 | |
SFH debt | 473,615 | |
Cash and availabilities | 1,099,687 | |
Total receivables | 6,361,852 | |
Receivables - PoC | 3,380,410 | |
Receivables - results to be recognized | 2,981,442 | |
Finished units | 148,507 | |
Equity + Minorities, excl. FIDC | 2,286,392 | |
Equity | 1,783,476 | |
Minority shareholders (excluding FIDC) | 502,916 | |
Outlook |
Based on the Companys strategy for the fourth quarter, Gafisa consolidated launches could be two times higher than the 3Q09 figure. Gafisa continues to expect consolidated sales for the full year 2009 of between R$2.7 and R$3.2 billion and consolidated EBITDA margin is expected to be in the range of 16% - 17% (without Tendas goodwill impact), while EBITDA margin for Tenda is expected to be between 14% - 16%.
Page 18 of 25 |
Glossary
Backlog of Results As a result of the Percentage of Completion Method of recognizing revenues, we recognize revenues and expenses over a multi-year period for each residential unit we sell. Our backlog of results represents revenues minus costs that will be incurred in future periods from past sales.
Backlog of Revenues As a result of the Percentage of Completion Method of recognizing revenues, we recognize revenues over a multi-year period for each residential unit we sell. Our backlog represents revenues that will be incurred in future periods from past sales.
Backlog Margin Equals to Backlog of results divided Backlog of Revenues to be recognized in future periods.
Land Bank Land that Gafisa holds for future development paid either in Cash or through swap agreements. Each decision to acquire land is analyzed by our investment committee and approved by our board of directors.
PoC Method Under Brazilian GAAP, real estate development revenues, costs and related expenses are recognized using percentage-of-completion (PoC) method of accounting by measuring progress towards completion in terms of actual costs incurred versus total budgeted expenditures for each stage of a development.
Pre-sales Contracted pre-sales are the aggregate amount of sales resulting from all agreements for the sale of units entered into during a certain period, including new units and units in inventory. Contracted pre-sales will be recorded as revenue as construction progresses (PoC method). There is no definition of "contracted pre-sales'' under Brazilian GAAP.
Affordable Entry Level residential units targeted to the mid-low and low income segments with prices below R$1,800 per square meter.
LOT (Urbanized Lots) land subdivisions, or lots, with prices ranging from R$150 to R$600 per square meter
SFH Funds Funds from SFH are originated from the Governance Severance Indemnity Fund for Employees (FGTS) and from savings accounts deposits. Banks are required to invest 65% of the total savings accounts balance in the housing sector, either to final customers or developers, at lower interest rates than the private market.
Swap Agreements A system in which we grant the land-owner a certain number of units to be built on the land or a percentage of the proceeds from the sale of units in such development in exchange for the land. By acquiring land through this system, we intend to reduce our cash requirements and increase our returns.
PSV Potential Sales Value.
Page 19 of 25 |
About Gafisa
We are one of Brazils leading diversified national homebuilders. Over the last 55 years, we have been recognized as one of the most professionally-managed homebuilders, having completed and sold more than 980 developments and constructed over 11 million square meters of housing, which we believe is more than any other residential development company in Brazil. We believe Gafisa is one of the best-known brands in the real estate development market, enjoying a reputation among potential homebuyers, brokers, lenders, landowners, and competitors for quality, consistency, and professionalism. We serve the lower income housing segments through our majority ownership stake in Construtora Tenda, S.A., a separate publicly-traded company on the Novo Mercado of the BM&FBOVESPA.
Investor Relations
Luiz Mauricio de Garcia Paula
Ana Maria Paro
Marina Noal Arruda
Phone: +55 11 3025-9297 / 9242 / 9305
Email: ri@gafisa.com.br
Website: www.gafisa.com.br/ir
Media Relations (Brazil)
Patrícia Queiroz
Máquina da Notícia Comunicação Integrada
Phone: +55 11 3147-7409
Fax: +55 11 3147-7900
E-mail: patricia.queiroz@maquina.inf.br
This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Gafisa. These are merely projections and, as such, are based exclusively on the expectations of management concerning the future of the business and its continued access to capital to fund the Companys business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors; therefore, they are subject to change without prior notice.
Page 20 of 25 |
The following table sets projects launched during the 9 months of 2009:
Table 27 - Projects launched | ||||||||||||||
Project | Launch Date | Local | % Gafisa | Units (%Gafisa) |
PSV (%Gafisa) |
% sales 30/set/09 |
||||||||
Gafisa | Verdemar Fase 2 | January | Guarujá SP | 100% | 77 | 50,931 | 38% | |||||||
Gafisa | Centro Empresarial Madureira | March | Rio de Janeiro RJ | 100% | 195 | 24,208 | 47% | |||||||
Gafisa | Brink F2 Campo Limpo | March | São Paulo SP | 100% | 95 | 23,019 | 66% | |||||||
Gafisa | Alegria Fase 2 | April | Guarulhos SP | 100% | 139 | 38,456 | 51% | |||||||
Gafisa | Canto dos Pássaros | April | Porto Alegre SP | 80% | 112 | 15,930 | 28% | |||||||
Gafisa | Grand Park Parque Árvores Seringueira | May | São Luís MA | 50% | 74 | 6,769 | 72% | |||||||
Gafisa | Vila Nova São José F1 Metropolitan | June | São José SP | 100% | 96 | 30,028 | 28% | |||||||
Gafisa | Sorocaba | June | Rio de Janeiro RJ | 100% | 80 | 38,995 | 69% | |||||||
Gafisa | Vistta Santana | June | São Paulo SP | 100% | 178 | 117,964 | 69% | |||||||
Gafisa | Grand Park Parque Árvores Salgueiro | June | São Luís MA | 50% | 74 | 6,844 | 78% | |||||||
Gafisa | The Place | August | Goiania GO | 80% | 25 | 35,945 | 30% | |||||||
Gafisa | Brotas | August | Salvador BA | 50% | 291 | 24,525 | 99% | |||||||
Gafisa | Grand Park Árvores Bambu | August | Belém PA | 50% | 74 | 6,989 | 69% | |||||||
Gafisa | Reserva Ibiapaba | September | São Luís MA | 80% | 262 | 35,271 | 34% | |||||||
Gafisa | Magno | September | São Paulo SP | 100% | 33 | 52,841 | 72% | |||||||
Gafisa | Acupe BA | September | Salvador BA | 50% | 188 | 16,439 | 85% | |||||||
Gafisa | Stake Acquisition1) | | | 100% | 234 | 106,923 | 78% | |||||||
Gafisa | 2,227 | 632,077 | 61% | |||||||||||
Alphaville | AlphaVille Caruaru | mar09 | Caruaru PE | 70% | 172 | 21,881 | 100% | |||||||
Alphaville | AlphaVille Granja Viana | jun09 | São Paulo SP | 33% | 110 | 36,264 | 100% | |||||||
Alphaville | AlphaVille Votorantim F2 | jun09 | São Paulo SP | 30% | 51 | 10,306 | 79% | |||||||
Alphaville | Conceito A Rio das Ostras | jun09 | Rio das Ostras RJ | 100% | 106 | 35,896 | 14% | |||||||
Alphaville | AlphaVille Campina Grande | set09 | Campina Grande PB | 53% | 205 | 29,135 | 46% | |||||||
Alphaville | 645 | 133,482 | 64% | |||||||||||
Tenda | Vila Real Life Sitio Cia | abr09 | Salvador | 100% | 178 | 14,866 | 97% | |||||||
Tenda | FIT Giardino fase 1 | abr09 | Caxias do Sul | 80% | 207 | 31,916 | 9% | |||||||
Tenda | FIT Icoaraci | abr09 | Belém | 80% | 235 | 40,065 | 36% | |||||||
Tenda | Le Grand Vila Real Tower | mai09 | Belo Horizonte | 100% | 92 | 9,162 | 89% | |||||||
Tenda | Green Park Life Residence | jun09 | Juiz de Fora | 100% | 220 | 23,540 | 32% | |||||||
Tenda | Vermont Life | jun09 | Governador Valadares | 100% | 192 | 16,512 | 18% | |||||||
Tenda | FIT Dom Jaime | jun09 | São Bernardo do Campo | 100% | 364 | 55,757 | 39% | |||||||
Tenda | Bairro Novo Fase 3 | jul09 | Cotia | 100% | 448 | 38,000 | 65% | |||||||
Tenda | Bariloche | ago09 | Belo Horizonte | 100% | 80 | 8,400 | 78% | |||||||
Tenda | Mirante do Lago Fase 2A | ago09 | Ananindeua | 70% | 132 | 20,700 | 56% | |||||||
Tenda | Diamond | ago09 | Rio de Janeiro | 100% | 312 | 46,800 | 5% | |||||||
Tenda | Parma | set09 | Belo Horizonte | 100% | 36 | 4,500 | 100% | |||||||
Tenda | Marumbi Fase 01 | set09 | Curitiba | 100% | 335 | 61,808 | 9% | |||||||
Tenda | Bosque das Palmeiras | set09 | Recife | 100% | 144 | 10,768 | 63% | |||||||
Tenda | Club Gaudi | set09 | Guarulhos | 100% | 300 | 23,579 | 5% | |||||||
Tenda | Tony Passos F1 Recanto das Rosas | set09 | Ribeirão das Neves | 100% | 240 | 20,160 | 16% | |||||||
Tenda | Jardim Alvorada | set09 | Guarulhos | 100% | 180 | 16,020 | 60% | |||||||
Tenda | Bosque Itaquera | set09 | São Paulo | 100% | 256 | 37,900 | 29% | |||||||
Tenda | 3,951 | 480,453 | 33% | |||||||||||
Total | 6,822 | 1,246,011 | 50% | |||||||||||
1) Includes the part acquired from partners in 10 different projects; % Gafisa is a weight average |
Page 21 of 25 |
The following table sets forth the financial completion of the construction in progress and the related revenue recognized (R$000) during the quarter ended on September, 30th 2009.
Project | Construction status | % Sold | Revenues recognized (R$000) | |||||||||||
3Q09 | 2Q09 | 3Q09 | 2Q09 | 3Q09 | 2Q09 | |||||||||
Gafisa | VISTTA SANTANA | 44% | 0% | 69% | 45% | 35,502 | 0 | |||||||
Gafisa | PARC PARADISO | 60% | 42% | 99% | 99% | 27,846 | 14,882 | |||||||
Gafisa | LONDON GREEN | 81% | 70% | 742% | 71% | 21,624 | 14,279 | |||||||
Gafisa | ENSEADA DAS ORQUÍDEAS | 57% | 48% | 95% | 92% | 18,087 | 16,695 | |||||||
Gafisa | VP HORTO - FASE 1 (OAS) | 66% | 49% | 98% | 99% | 17,627 | 13,886 | |||||||
Gafisa | MAGIC | 74% | 62% | 74% | 61% | 16,637 | 11,576 | |||||||
Gafisa | VP HORTO - FASE 2 (OAS) | 50% | 36% | 96% | 97% | 13,718 | 1,719 | |||||||
Gafisa | TERRAÇAS ALTO DA LAPA | 72% | 58% | 88% | 82% | 13,248 | 8,862 | |||||||
Gafisa | MAGNO | 36% | 0% | 72% | 0 | 13,145 | 0 | |||||||
Gafisa | BRINK | 41% | 15% | 85% | 75% | 12,100 | 1,531 | |||||||
Gafisa | SOROCABA | 45% | 0% | 69% | 55% | 11,847 | 0 | |||||||
Gafisa | PQ BARUERI COND - FASE 1 | 39% | 28% | 63% | 60% | 11,674 | 9,699 | |||||||
Gafisa | VISION | 66% | 57% | 90% | 85% | 11,264 | 8,256 | |||||||
Gafisa | ISLA RESIDENCE CLUBE | 93% | 81% | 93% | 92% | 10,561 | 11,777 | |||||||
Gafisa | SUPREMO | 54% | 51% | 96% | 92% | 9,581 | 6,742 | |||||||
Gafisa | ACQUA RESIDENCIAL | 75% | 64% | 54% | 48% | 9,392 | 7,547 | |||||||
Gafisa | VILA NOVA SÃO JOSÉ - F1A | 31% | 6% | 64% | 57% | 8,567 | 1,969 | |||||||
Gafisa | VIVANCE RES. SERVICE | 93% | 76% | 95% | 90% | 8,526 | 4,487 | |||||||
Gafisa | CSF ACACIA | 93% | 82% | 100% | 100% | 8,501 | 7,165 | |||||||
Gafisa | NOVA PETROPOLIS SBC - 1ª FA | 49% | 42% | 49% | 45% | 8,429 | 5,631 | |||||||
Gafisa | COLLORI | 92% | 81% | 100% | 99% | 8,332 | 6,340 | |||||||
Gafisa | MANSÃO IMPERIAL - F1 | 32% | 24% | 67% | 51% | 7,558 | 6,592 | |||||||
Gafisa | PRIVILEGE RESIDENCIAL SPE | 59% | 46% | 85% | 84% | 7,036 | 5,173 | |||||||
Gafisa | MANHATTAN OFFICE WALL STR | 14% | 7% | 61% | 58% | 6,716 | 2,240 | |||||||
Gafisa | GRAND VALLEY | 84% | 73% | 69% | 65% | 6,174 | 3,139 | |||||||
Gafisa | ACQUARELLE | 54% | 44% | 82% | 77% | 6,017 | 5,241 | |||||||
Gafisa | RESERVA DO LAGO - FASE I | 92% | 81% | 92% | 82% | 5,487 | 3,703 | |||||||
Gafisa | BLUE LAND SPE 36 | 100% | 100% | 96% | 87% | 5,450 | 10,200 | |||||||
Gafisa | OLIMPIC BOSQUE DA SAÚDE | 67% | 60% | 89% | 86% | 5,406 | 4,518 | |||||||
Gafisa | BRINK F2 - CAMPO LIMPO | 41% | 14% | 66% | 54% | 5,305 | 1,711 | |||||||
Gafisa | SUPREMO IPIRANGA | 20% | 0% | 51% | 34% | 5,065 | 0 | |||||||
Gafisa | EVIDENCE | 58% | 44% | 74% | 69% | 5,015 | 2,181 | |||||||
Gafisa | SOLARES DA VILA MARIA | 52% | 41% | 100% | 100% | 4,977 | 1,959 | |||||||
Gafisa | CSF PRÍMULA | 88% | 79% | 100% | 99% | 4,916 | 4,733 | |||||||
Gafisa | TERRAÇAS TATUAPE | 37% | 28% | 67% | 55% | 4,852 | 2,189 | |||||||
Gafisa | DETAILS | 47% | 45% | 57% | 37% | 4,499 | 6,974 | |||||||
Gafisa | SECRET GARDEN | 75% | 59% | 70% | 70% | 4,470 | 2,858 | |||||||
Gafisa | QUINTAS DO PONTAL | 62% | 55% | 31% | 24% | 4,454 | 2,399 | |||||||
Gafisa | VERDEMAR - FASE 2 | 43% | 27% | 38% | 33% | 4,406 | 4,258 | |||||||
Gafisa | ALEGRIA FASE 1 | 20% | 10% | 61% | 59% | 4,152 | 291 | |||||||
Gafisa | GRAND VALLEY NITERÓI - FASE | 35% | 28% | 92% | 93% | 4,068 | 426 | |||||||
Gafisa | MANHATTAN HOME SOHO | 18% | 0% | 45% | 38% | 3,988 | 154 | |||||||
Gafisa | PALM VILLE | 73% | 50% | 95% | 94% | 3,908 | 2,578 | |||||||
Gafisa | PENÍNSULA FIT | 100% | 100% | 92% | 88% | 3,840 | 10,528 | |||||||
Gafisa | ECOLIVE | 23% | 11% | 75% | 70% | 3,741 | 1,356 | |||||||
Gafisa | HYPE RESIDENCE SERVICE | 100% | 100% | 93% | 83% | 3,696 | 7,588 | |||||||
Gafisa | CELEBRARE RESIDENCIAL | 65% | 52% | 78% | 78% | 3,620 | 2,779 | |||||||
Gafisa | RUA DAS LARANJEIRAS 29 | 63% | 59% | 100% | 100% | 3,591 | 5,280 | |||||||
Gafisa | FIT RESIDENCE SERVICE NITE | 98% | 84% | 88% | 86% | 3,583 | 2,840 | |||||||
Gafisa | CHÁCARA SANTANA | 37% | 33% | 94% | 90% | 3,468 | 8,635 | |||||||
Gafisa | MONT BLANC | 42% | 37% | 33% | 30% | 3,319 | 1,934 | |||||||
Gafisa | ORBIT | 59% | 53% | 47% | 39% | 3,318 | 1,431 | |||||||
Gafisa | MAGNIFIC | 50% | 39% | 63% | 63% | 3,254 | 1,490 | |||||||
Gafisa | HORIZONTE | 63% | 50% | 100% | 100% | 3,242 | 1,577 | |||||||
Gafisa | ICARAÍ CORPORATE | 82% | 76% | 97% | 96% | 3,183 | 1,277 | |||||||
Gafisa | ESPACIO LAGUNA - FASE 1 | 98% | 96% | 89% | 88% | 3,130 | 3,194 | |||||||
Gafisa | CSF DALIA | 82% | 71% | 98% | 98% | 3,092 | 1,921 | |||||||
Gafisa | MANHATTAN HOME TRIBECA | 18% | 0% | 33% | 29% | 3,070 | 768 | |||||||
Gafisa | CAMPO D'OURIQUE | 100% | 100% | 94% | 73% | 3,055 | 2,170 | |||||||
Gafisa | Outros | --- | --- | --- | --- | 67,306 | 103,390 | |||||||
Gafisa | --- | --- | --- | --- | 531,633 | 384,717 | ||||||||
Alphaville | Jacuhy | 73% | 49% | 97% | 95% | 29,951 | 17,900 | |||||||
Alphaville | Rio das Ostras | 79% | 56% | 100% | 100% | 20,200 | 10,624 | |||||||
Alphaville | Londrina 2 | 72% | 62% | 99% | 86% | 6,196 | 4,127 | |||||||
Alphaville | Cuiabá II | 78% | 68% | 79% | 60% | 4,872 | 3,904 | |||||||
Alphaville | João Pessoa | 72% | 56% | 100% | 100% | 4,056 | 3,316 | |||||||
Alphaville | Manaus | 25% | 12% | 82% | 80% | 3,917 | 1,700 | |||||||
Alphaville | Barra da Tijuca | 74% | 71% | 73% | 73% | 3,325 | 5,045 | |||||||
Alphaville | Santana Residencial | 100% | 98% | 48% | 44% | 2,960 | 4,147 | |||||||
Alphaville | Caruaru | 16% | 4% | 98% | 98% | 2,553 | 883 | |||||||
Alphaville | Litoral Norte II | 20% | 7% | 57% | 45% | 2,286 | 656 | |||||||
Alphaville | Outros | --- | --- | --- | --- | 10,155 | 7,372 | |||||||
Alphaville | --- | --- | --- | --- | 90,471 | 59,673 | ||||||||
Tenda | --- | --- | --- | --- | 254,997 | 261,428 | ||||||||
Total | --- | --- | --- | --- | 877,101 | 705,818 | ||||||||
Page 22 of 25 |
Consolidated Income Statement | ||||||||||||||
R$ 000 | 3Q09 | 3Q08 | 2Q09 | 9M09 | 9M08 | 3Q09 x 3Q08 | 3Q09 x 2Q09 | |||||||
Gross Operating Revenue | ||||||||||||||
Real Estate Development and Sales | 902,196 | 390,950 | 723,409 | 2,184,117 | 1,224,199 | 130.8% | 24.7% | |||||||
Construction and Services Rendered | 13,265 | 3,207 | 9,788 | 30,352 | 13,201 | 313.6% | 35.5% | |||||||
Deductions | (38,360) | (15,171) | (27,379) | (89,663) | (44,840) | 152.9% | 40.1% | |||||||
Net Operating Revenue | 877,101 | 378,986 | 705,818 | 2,124,806 | 1,192,560 | 131.4% | 24.3% | |||||||
Operating Costs | (621,927) | (246,364) | (514,465) | (1,523,640) | (814,201) | 152.4% | 20.9% | |||||||
Gross profit | 255,174 | 132,622 | 191,353 | 601,166 | 378,359 | 92.4% | 33.4% | |||||||
Operating Expenses | ||||||||||||||
Selling Expenses | (55,556) | (35,162) | (51,182) | (153,344) | (87,504) | 58.0% | 8.5% | |||||||
General and Administrative Expenses | (57,601) | (30,313) | (59,312) | (172,832) | (104,990) | 90.0% | -2.9% | |||||||
Amortization of gain on partial sale of FIT Residential | 52,600 | - | 52,600 | 157,800 | - | - | - | |||||||
Other Operating Revenues / Expenses | (40,031) | (10,359) | (16,341) | (79,094) | (13,303) | 286.4% | 145.0% | |||||||
Depreciation and Amortization | (9,784) | (11,402) | (6,400) | (24,166) | (29,606) | -14.2% | 52.9% | |||||||
Operating results | 144,802 | 45,386 | 110,718 | 329,530 | 142,956 | 219.0% | 30.8% | |||||||
Financial Income | 33,104 | 19,474 | 37,768 | 106,399 | 64,389 | 70.0% | -12.3% | |||||||
Financial Expenses | (64,112) | (16,048) | (50,488) | (159,336) | (24,272) | 299.5% | 27.0% | |||||||
Income Before Taxes on Income | 113,794 | 48,812 | 97,998 | 276,593 | 183,073 | 133.1% | 16.1% | |||||||
Deferred Taxes | (23,142) | (12,537) | (16,102) | (49,245) | (36,817) | 84.6% | 43.7% | |||||||
Income Tax and Social Contribution | (4,828) | (5,379) | (4,519) | (15,659) | (13,639) | -10.2% | 6.8% | |||||||
Income After Taxes on Income | 85,824 | 30,896 | 77,377 | 211,689 | 132,617 | 177.8% | 10.9% | |||||||
Minority Shareholders | (22,107) | (16,425) | (19,609) | (53,471) | (35,540) | 34.6% | 12.7% | |||||||
Lucro líquido | 63,717 | 14,471 | 57,768 | 158,218 | 97,077 | 340.3% | 10.3% | |||||||
Net Income Per Share (R$) | 0.48822 | 0.11135 | 0.44322 | 1.21232 | 0.74696 | 338.5% | 10.2% | |||||||
Page 23 of 25 |
Consolidated Balance Sheet | ||||||||||
R$ 000 | 3Q09 | 3Q08 | 2Q09 | 3Q09 X 3Q08 | 3Q09 X 2Q09 | |||||
ASSETS | ||||||||||
Current Assets | ||||||||||
Cash and banks | 215,133 | 36,478 | 129,543 | 489.8% | 66.1% | |||||
Financial investments | 884,554 | 740,950 | 926,769 | 19.4% | -4.6% | |||||
Receivables from clients | 1,718,110 | 828,369 | 989,326 | 107.4% | 73.7% | |||||
Properties for sale | 1,376,236 | 1,373,169 | 1,250,203 | 0.2% | 10.1% | |||||
Other accounts receivable | 93,722 | 169,686 | 78,141 | -44.8% | 19.9% | |||||
Deferred selling expenses | 7,205 | 3,744 | 13,237 | 92.4% | -45.6% | |||||
Deferred taxes | 13,099 | 0 | 2,879 | 355.0% | ||||||
Prepaid expenses | 13,522 | 17,892 | 22,098 | -24.4% | -38.8% | |||||
4,321,581 | 3,170,287 | 3,412,196 | 36.3% | 26.7% | ||||||
Long-term Assets | ||||||||||
Receivables from clients | 1,662,300 | 733,764 | 1,924,000 | 126.5% | -13.6% | |||||
Properties for sale | 386,196 | 166,552 | 539,722 | 131.9% | -28.4% | |||||
Deferred taxes | 250,846 | 55,046 | 227,848 | 355.7% | 10.1% | |||||
Other | 52,140 | 97,140 | 51,456 | -46.3% | 1.3% | |||||
2,351,482 | 1,052,501 | 2,743,026 | 123.4% | -14.3% | ||||||
Permanent Assets | ||||||||||
Investments | 195,088 | 202,674 | 195,088 | -3.7% | 0.0% | |||||
Property, plant and equipment | 53,698 | 37,745 | 49,126 | 42.3% | 9.3% | |||||
Intangible assets | 9,690 | 5,023 | 8,305 | 92.9% | 16.7% | |||||
258,476 | 245,442 | 252,519 | 5.3% | 2.4% | ||||||
Total Assets | 6,931,539 | 4,468,230 | 6,407,741 | 55.1% | 8.2% | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
Current Liabilities | ||||||||||
Loans and financings | 570,307 | 286,684 | 388,671 | 98.9% | 46.7% | |||||
Debentures | 80,781 | 16,190 | 113,902 | 399.0% | -29.1% | |||||
Obligations for purchase of land and advances from clients | 488,935 | 462,787 | 489,656 | 5.7% | -0.1% | |||||
Materials and service suppliers | 194,302 | 100,569 | 155,701 | 93.2% | 24.8% | |||||
Taxes and contributions | 132,216 | 101,722 | 120,624 | 30.0% | 9.6% | |||||
Taxes, payroll charges and profit sharing | 61,206 | 24,277 | 71,159 | 152.1% | -14.0% | |||||
Provision for contingencies | 10,512 | 2,856 | 9,437 | 268.1% | 11.4% | |||||
Dividends | 26,106 | - | 26,106 | --- | 0.0% | |||||
Deferred taxes | 52,375 | - | 28,159 | --- | 86.0% | |||||
Other | 181,312 | 83,923 | 103,128 | 116.0% | 75.8% | |||||
1,798,052 | 1,079,008 | 1,506,543 | 66.6% | 19.3% | ||||||
Long-term Liabilities | ||||||||||
Loans and financings | 636,639 | 578,588 | 746,180 | 10.0% | -14.7% | |||||
Debentures | 1,244,000 | 490,000 | 994,000 | 153.9% | 25.2% | |||||
Obligations for purchase of land | 147,168 | 199,677 | 140,439 | -26.3% | 4.8% | |||||
Deferred taxes | 322,870 | 93,317 | 276,582 | 246.0% | 16.7% | |||||
Provision for contingencies | 59,509 | 17,187 | 39,735 | 246.2% | 49.8% | |||||
Other | 362,843 | 301,235 | 360,120 | 20.5% | 0.8% | |||||
Deferred income on acquisition | 12,499 | 24,800 | 15,608 | -49.6% | -19.9% | |||||
Unearned income from partial sale of investment | 11,594 | 64,194 | --- | -81.9% | ||||||
2,797,122 | 1,704,804 | 2,636,858 | 64.1% | 6.1% | ||||||
Participação de Minoritários | 552,889 | 45,977 | 547,094 | 1102.5% | 1.1% | |||||
Shareholders' Equity | ||||||||||
Capital | 1,233,897 | 1,229,518 | 1,232,579 | 0.4% | 0.1% | |||||
Treasury shares | (18,050) | (18,050) | (18,050) | 0.0% | 0.0% | |||||
Capital reserves | 190,585 | 175,025 | 189,389 | 8.9% | 0.6% | |||||
Revenue reserves | 218,827 | 154,871 | 218,827 | 41.3% | 0.0% | |||||
Retained earnings/accumulated losses | 158,217 | 97,077 | 94,501 | 63.0% | ||||||
1,783,476 | 1,638,442 | 1,717,246 | 8.9% | 3.9% | ||||||
Liabilities and Shareholders' Equity | 6,931,539 | 4,468,230 | 6,407,741 | 55.1% | 8.2% | |||||
Page 24 of 25 |
Consolidated Cash Flows | ||||
3Q09 | 3Q08 | |||
Net Income | 63,717 | 14,470 | ||
Expenses (income) not affecting w orking capital | ||||
Depreciation and amortization | 12,892 | 9,633 | ||
Goodw ill / Negative goodw ill amortization | (3,107) | 1,769 | ||
Expense w ith stock option plan | 2,749 | 6,673 | ||
Unearned income from partial sale of investment | (52,600) | - | ||
Unrealized interest and charges, net | 39,719 | 43,781 | ||
Deferred Taxes | 23,142 | 11,802 | ||
Disposal of fixed asset | 271 | - | ||
Decrease (increase) in assets | ||||
Clients | (467,084) | (53,051) | ||
Properties for sale | 27,494 | (117,656) | ||
Other receivables | (82,314) | (40,944) | ||
Deferred selling expenses | 6,032 | (446) | ||
Prepaid expenses | 8,576 | (8,331) | ||
Decrease (increase) in liabilities | ||||
Obligations for purchase of land | 16,240 | 79,262 | ||
Obligations for purchase of real estate | ||||
Taxes and contributions | 24,138 | 10,879 | ||
Tax, labor and other contingencies | 39,171 | 1,888 | ||
Trade accounts payable | 38,601 | (18,575) | ||
Advances from customers | (10,231) | (147,810) | ||
Payroll, charges and provision for bonuses payable | (9,950) | (10,219) | ||
Other accounts payable | 113,456 | (23,013) | ||
Credit assignments payable | ||||
Deferred taxes | ||||
Income (expenses) from sales to appropriate | ||||
Minority Interest | 14,593 | 5,346 | ||
Cash used in operating activities | (194,495) | (234,542) | ||
Investing activities | ||||
Purchase of property and equipment and deferred charges | (19,120) | (14,297) | ||
Capital contribution to subsidiary companies | ||||
Restricted cash in guarantee to loans | (10,224) | - | ||
Acquisition of investments | ||||
Cash used in investing activities | (29,344) | (14,297) | ||
Financing activities | ||||
Capital increase | 1,319 | 7,547 | ||
Contributions from venture partners | ||||
Increase in loans and financing | 436,562 | 303,037 | ||
Repayment of loans and financing | (187,307) | (61,322) | ||
Assignment of credit receivables, net | 15,214 | 542 | ||
Proceeds from subscription of redeemable equity interest in securitization fund | (8,798) | - | ||
Cessão de Crédito Imobiliário - CCI 2007 dividends | - | - | ||
Net cash provided by financing activities | 256,990 | 249,804 | ||
Net increase (decrease) in cash and banks | 33,151 | 965 | ||
Cash and banks | ||||
At the beggining of the period | 915,199 | 776,463 | ||
At the end of the period | 948,350 | 777,428 | ||
Net increase (decrease) in cash and banks | 33,151 | 965 | ||
Page 25 of 25 |
Gafisa S.A. |
||
By: |
/s/
Alceu Duílio Calciolari |
|
Name: Alceu Duílio Calciolari
Title: Chief Financial Officer and Investor Relations Officer |
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will a ctually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.