GAFISA
S.A.
(Exact
Name of Registrant as Specified in Its Charter)
|
Not
applicable
(Translation
of Registrant’s name into English)
|
The
Federative Republic of Brazil
|
(State
or Other Jurisdiction of Incorporation or Organization)
|
1520
|
(Primary
Standard Industrial Classification Code Number)
|
Not
Applicable
|
(I.R.S.
Employer Identification Number)
|
Av.
Nações Unidas No. 8,501, 19th floor
05425−070
− São Paulo, SP – Brazil
Telephone:
+ 55 (11) 3025−9000
|
(Address,
Including Zip Code, and Telephone Number, Including Area Code, of
Registrant’s Principal Executive
Offices)
|
National
Corporate Research, Ltd.
10
East 40th Street, 9th floor
New
York, NY 10016
Telephone:
(212) 947-7200
|
Copies
to:
Diane
G. Kerr, Esq.
Manuel
Garciadiaz, Esq.
Davis
Polk & Wardwell LLP
450
Lexington Avenue
New
York, New York 10017
(212)
450-4000
|
CALCULATION
OF REGISTRATION FEE
|
|||
Title
of Each Class
of
Securities To Be Registered
|
Amount
To Be Registered(1)
|
Proposed
Maximum Aggregate Offering Price(2)
|
Amount
of
Registration
Fee
|
Gafisa
S.A. common shares, no par value
|
16,442,296
|
$50,370,692
|
$2,810.68
|
(1)
|
Calculated
based on the maximum number of each registrant’s shares to be issued to
U.S. holders of common shares of Construtora Tenda S.A., or Tenda, in
connection with the Restructuring described in the accompanying
preliminary prospectus / information statement assuming that none of the
holders exercise their right of withdrawal in connection with the
Restructuring.
|
(2)
|
The
Proposed Maximum Aggregate Offering Price for registrant Gafisa (estimated
solely for purposes of computing the amount of the registration fee
pursuant to Rule 457(c) and Rule 457(f) under the U.S. Securities Act of
1933, as amended) is calculated in accordance with the exchange ratio of
0.205 common share to be exchanged in the Restructuring for each common
share held directly by a U.S. resident of Tenda and the average of the
high and low prices of the common shares of Tenda, as reported on the São
Paulo Stock Exchange on November 6, 2009, converted into U.S. dollars at
the exchange rate of R$1.717 = US
$1.00.
|
The information in this
preliminary
prospectus/information statement is not
complete and may be changed. Gafisa S.A. may not sell these securities
until the registration statement filed with the U.S. Securities and
Exchange Commission is effective. This preliminary prospectus/information statement is not an
offer to sell these securities and it is not soliciting an offer to buy
these securities in any state or jurisdiction where the offer or sale is
not permitted.
|
Gafisa
S.A.
Exchange
of Common Shares
for
Common Shares of Construtora Tenda S.A.
|
1
|
|
8
|
|
8
|
|
10
|
|
11
|
|
12
|
|
13
|
|
14
|
|
16
|
|
17
|
|
17
|
|
17
|
|
17
|
|
18
|
|
18
|
|
18
|
|
19
|
|
20
|
|
33
|
|
33
|
|
35
|
|
36
|
|
37
|
|
37
|
|
41
|
|
41
|
|
53
|
|
72
|
|
72
|
|
75
|
|
76
|
|
76
|
|
77
|
|
79
|
|
80
|
|
80
|
|
81
|
|
97
|
|
98
|
|
98
|
|
98
|
|
99
|
|
99
|
|
99
|
|
103
|
|
107
|
|
116
|
|
118
|
|
118
|
|
119
|
119
|
|
121
|
|
121
|
|
121
|
|
122
|
|
122
|
|
122
|
|
134
|
|
134
|
|
134
|
|
135 | |
137
|
|
137
|
|
137
|
|
137
|
|
138
|
|
138
|
|
PART NINE—FINANCIAL STATEMENTS
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
|
140
|
Q:
|
What
is the Restructuring?
|
A:
|
Gafisa
S.A., which we refer to in this preliminary prospectus/information
statement as “Gafisa” or “we,” has proposed the Restructuring aiming at
consolidating at the Gafisa level all of the noncontrolling share
ownership in its subsidiary, Construtora Tenda S.A., or Tenda. The
Restructuring will be accomplished via a merger of shares (called Incorporaçăo
de Ações,
under Brazilian law): a Brazilian business combination transaction
where, subject to the approvals of the Gafisa shareholders and the Tenda
shareholders, all of the Tenda shares not owned by Gafisa will be
exchanged for Gafisa shares and Tenda will become a wholly-owned
subsidiary of Gafisa.
|
Q:
|
What
are the reasons for the
Restructuring?
|
A:
|
Gafisa
and Tenda believe the Restructuring: will be advantageous to the
shareholders of both Companies, to the extent the Restructuring is likely
to result in the creation of a national leader in the civil construction
sector that is likely to derive benefits arising from scale and an
increase in operational, commercial and administrative efficiencies, and
permit the reduction of redundant costs and operational scale gains,
allowing for larger investments to be made and a higher sustainable growth
rate. For further details on the reasons for the Restructuring see “Part
Two: Summary—Purposes of and Reasons for the Restructuring” and “Part
Five: The Restructuring—Reasons for the
Restructuring.”
|
Q:
|
What
will happen to my shares in the
Restructuring?
|
A:
|
If
the Restructuring is approved and you are a direct holder of common shares
of Tenda, you will receive 0.205 common share, no par value, of Gafisa for
each common share of Tenda that you hold, respectively, plus, in each
case, the cash value of any fractional
shares.
|
Q:
|
What
shareholder approvals are needed?
|
A:
|
The
Restructuring will require the affirmative vote of holders representing at
least 50% of Tenda’s voting capital. Tenda’s extraordinarily general
shareholders’ meeting, or EGM, is currently scheduled for December 14,
2009.
|
Q:
|
Do
I have withdrawal rights?
|
A:
|
Persons
who were holders of record of common shares of Tenda as of October 21,
2009, will be entitled to exercise withdrawal rights in connection with
the Restructuring.
|
Q:
|
Have
the boards of directors or any committees of these boards taken any
position relating to the
Restructuring?
|
A:
|
The
board of directors of each of the Companies has approved the merger
agreement (Protocolo de
Incorporação de Ações e Instrumento de Justificação, under
Brazilian law) to which their Companies are parties and the calling of the
EGMs required to obtain the requisite shareholder approvals. At
the time the Restructuring was publicly announced, Tenda, adopting
recently issued recommendations of the CVM, established, by one of the
means recommended by the CVM, a special committee to negotiate the terms
of the Restructuring with the management of Gafisa and to submit its
recommendations to the board of directors of Tenda. The purpose
of setting up the special committee was to protect the interests of
noncontrolling shareholders of Tenda. This special
committee, or the Special Committee, after having reviewed and negotiated
the Gafisa proposals, having received advice from its own independent
financial adviser and legal counsel and after having reached an agreement
with the Gafisa management on the terms of the Restructuring, including
the Exchange Ratio, unanimously recommended to the board of directors of
Tenda the Exchange Ratio for the Restructuring set forth in this
preliminary prospectus/information statement. On November 6,
2009, the board of directors of Tenda considered the recommendation of the
Special Committee and other factors and approved the
Restructuring. The Gafisa board of directors also approved the
Restructuring on that day. For additional information regarding the
factors and reasons considered by the board of directors of Gafisa and
Tenda in approving the Restructuring, the manner in which these boards
made their decision, including the decision of certain members of the
boards to abstain from voting and the interest of certain directors and
their affiliates in the Restructuring, see “Part Two: Summary—Background
of the Restructuring” and “Part Five: The Restructuring—Background, the
Special Committee and Board Positions—The Special Committee.” For
additional information regarding the factors and reasons considered by the
boards of directors of Gafisa and Tenda in approving the Restructuring,
and the manner in which these boards made their decisions, including the
decision of certain members of the boards to abstain from voting, see
“Part Five: The Restructuring—Background, the Special Committee and Board
Positions” and “Part Five: The Restructuring—Reasons for the
Restructuring.”
|
Q:
|
Why
am I receiving this document?
|
A:
|
This
document is a preliminary prospectus/information statement of Gafisa
relating to the merger of Tenda shares into Gafisa. If you hold common
shares of Tenda you are receiving this preliminary prospectus/information
statement because Gafisa may be deemed to be offering you securities for
purposes of the U.S. Securities Act of 1933, as amended, or the Securities
Act. If you hold common
shares of either Gafisa or Tenda and you are a U.S. resident you are receiving this
document to provide you with at least the same information relating to
the shareholder meetings of the Companies as is being provided to other
holders of the same class of securities in Brazil. If you are a holder
of Gafisa ADSs, you are receiving this document to provide you with
information about the Restructuring and the matters that will be
considered at the EGM of Gafisa and with information regarding how you may
exercise your voting rights in relation to these
matters.
|
Q:
|
What
will be the accounting treatment of the
Restructuring?
|
A:
|
Under
Brazilian GAAP, the accounting principles used to prepare Gafisa’s
consolidated financial statements, the Restructuring is expected to be
accounted for by the book value of the shares
exchanged.
|
Q:
|
What
are the U.S. federal income tax consequences of the
Restructuring?
|
A:
|
Generally,
the Restructuring should qualify as a tax-free “reorganization” for U.S.
federal income tax purposes. In order for the Restructuring to
qualify as a reorganization for such purposes, among other things, Tenda
shareholders must receive, from Gafisa, solely Gafisa voting stock in
exchange for their Tenda shares. There is no authority expressly
addressing whether the payment of cash to Tenda shareholders who exercise
withdrawal rights pursuant to Brazilian law will prevent the Restructuring
from satisfying this “solely for voting stock”
requirement. However, based on the advice of Gafisa’s Brazilian
counsel to the effect that solely Tenda, and not Gafisa, will be liable to
make any cash payment to any Tenda shareholders who exercise withdrawal
rights, and assuming that any such payments are not funded indirectly by
Gafisa, the payment of such cash to Tenda shareholders who exercise
withdrawal rights should not prevent the Restructuring from qualifying as
a reorganization for U.S. federal income tax purposes. No
ruling has been sought or will be obtained from the U.S. Internal Revenue
Service on the U.S. federal income tax consequences of the
transaction.
|
Q:
|
When
will the Restructuring be
completed?
|
A:
|
The
EGM of Tenda will be held on December 14, 2009 at 9:00 a.m. (São Paulo
time) and the EGM of Gafisa will be held on December 14, 2009 at 2:00 p.m.
(São Paulo time). If either EGM is not convened due to a lack of quorum,
because the SEC shall not have declared effective the registration
statement of
|
which
this preliminary prospectus/information statement is a part before that
date or for any other reason, the EGMs will be convened on a later date
and a call notice will be released at least eight days in advance of the
rescheduled date of such EGM. Any changes to the abovementioned dates
shall be disclosed in Brazil in accordance with Brazilian corporate law
and by the issuance of a press release and the filing of an amendment to
this prospectus/information statement with the SEC. The merger of shares
will be legally effective upon approval of the Restructuring at the EGMs.
However, new common shares will not be delivered to you in the
Restructuring until a few days after the end of the period for the
exercise of withdrawal rights, which period will end 30 days after
publication of the minutes of Tenda’s EGM called to approve the
Restructuring. See “Could the Restructuring be unwound?”
below.
|
Q:
|
Can
I sell my old shares during the 30-day period following publication of the
minutes of the EGMs?
|
A:
|
There
will continue to be negotiation under the ticker TEND3 on the
BM&FBOVESPA, during the 30-day period. The shares of Gafisa will
continue to be listed on the BM&FBOVESPA and the Gafisa ADSs will
continue to be listed on the NYSE during and after that period until such
time, if any, as Gafisa might decide to alter the listing of the Gafisa
shares or ADSs. Gafisa does not currently have any plans of this
nature.
|
Q:
|
Could
the Restructuring be unwound?
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A:
|
Under
Brazilian law, if management believes that the total value of the
withdrawal rights exercised by the shareholders of Tenda may place at risk
the financial stability of the companies, management may, within 10 days
after the end of the withdrawal rights period, call an EGM to either
unwind or ratify the Restructuring. Payment relating to the exercise of
the withdrawal rights will not be due if the Restructuring is unwound. See
“When will I receive my Gafisa Common Shares?”
below.
|
Q:
|
Are
any other approvals necessary for the completion of the
Restructuring?
|
A:
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Yes.
The EGMs of Tenda and Gafisa will not take place until after the SEC
declares effective the registration statement of which this preliminary
prospectus/information statement is a part. Completion of the
Restructuring then is subject to (1) the occurrence of the Tenda EGM
(which under Brazilian law must occur before the Gafisa EGM) and the
approval of the Restructuring by the holders of at least 50% of Tenda’s
common shares, (2) the occurrence of the Gafisa EGM (whether as currently
scheduled or in a second call, due to minimum attendance requirements
under Brazilian law) and the approval of the matters presented to the
meeting by the holders of a majority of the Gafisa shares present or
represented at the meeting. In addition, Tenda will seek approval of its
debenture holders for the Restructuring and delisting from
BM&FBOVESPA’s Novo Mercado. Acceleration of the debentures may result
if either debenture holders decide without justification not to
approve the Restructuring or if the debenture holders do not approve the
delisting of Tenda from BM&FBOVESPA’s Novo
Mercado. See “Part Four: Information on Gafisa and Tenda—Management’s
Discussion and Analysis of Financial Condition and Results of Operations
of Tenda—Indebtedness—Debenture
Program.”
|
Q:
|
How
will my rights as a shareholder change after the
Restructuring?
|
A:
|
If
you are a shareholder of Tenda, your rights as a shareholder of Gafisa
will be substantially similar to your rights as a shareholder of Tenda. In
exchange for your shares, you will be receiving exclusively Gafisa shares
of the same class as your original shares plus any cash payable in respect
of fractional shares as described below. The Gafisa common shares that you
receive will be listed on BM&FBOVESPA as were your original Tenda
shares, and on the New York Stock Exchange, or the NYSE, if later you
decide to convert your Gafisa shares into Gafisa ADSs. See “Gafisa expects
your new Gafisa securities to enjoy greater market liquidity when compared
to your original securities” below.
|
Q:
|
When
will I receive my Gafisa common
shares?
|
A:
|
Assuming
the Restructuring is completed, we will deliver common shares in
connection with the Restructuring a couple of days after the end of the
period for the exercise of withdrawal rights, which period will end 30
days after the publication of the minutes of Tenda’s EGM called to approve
the
|
|
Restructuring.
During that period, the common shares of Gafisa and Tenda are expected to
continue to trade on the BM&FBOVESPA under their existing ticker
symbols and the Gafisa ADSs are expected to continue to trade on the NYSE,
under their existing symbol.
|
Q:
|
Can
I opt to receive Gafisa ADSs instead of Gafisa
shares?
|
A:
|
No.
However, Citibank N.A., the depositary of Gafisa ADSs or the Gafisa
Depositary, may create ADSs on your behalf if you or your broker deposit
Gafisa shares with the custodian of Gafisa shares in Brazil, Itaú Unibanco
S.A., or the Gafisa Custodian. The Gafisa Depositary will issue ADSs (in
whole numbers only) and deliver such ADSs to the person indicated by you
only after you pay any applicable issuance fees and any charges and taxes
payable for the transfer of Gafisa shares to the Gafisa Custodian. Your
ability to deposit Gafisa shares and receive Gafisa ADSs may be limited by
U.S. and Brazilian legal considerations applicable at the time of deposit.
Additional information on Gafisa ADSs, including exchange rights and
conversion fees, are included in Gafisa’s Depositary Agreement, which is
incorporated by reference herein. See “Part Five: The Restructuring—Conversion of Gafisa
Common Shares into Gafisa ADSs.”
|
Q:
|
When
will I receive any cash attributable to any fractional Gafisa
share?
|
A:
|
If
you hold shares of Tenda and the application of the Exchange Ratio in the
“Restructuring would entitle you to receive a fractional Gafisa share,
Gafisa will sell, in an auction on the BM&FBOVESPA, the aggregate of
all fractional Gafisa shares. You will receive cash in lieu of any
fractional Gafisa share to which you would have been entitled as a result
of the Restructuring based on the net proceeds (after deducting applicable
fees and expenses), from any sale on the BM&FBOVESPA of the aggregate
number of fractional entitlements to Gafisa shares within thirty business
days after the receipt of proceeds from the sale of all such fractional
interests by Gafisa on the BM&FBOVESPA. The sale of such
fractional interests in auctions on the BM&FBOVESPA will occur as soon
as practicable after the completion of the
Restructuring.
|
Q:
|
Will
I have to pay brokerage
commissions?
|
A:
|
You
will not have to pay brokerage commissions as a result of the exchange of
your Tenda shares for Gafisa shares in the Restructuring if your Tenda
shares are registered in your name. If your securities are held through a
bank or broker or a custodian linked to a stock exchange, you should
consult with them as to whether or not they charge any transaction fee or
service charges in connection with the Restructuring. Also, if
you are not a Brazilian resident, you may be required to pay other costs
in connection with complying with the Brazilian legal requirements
described under “Part Five: The Restructuring—Brokerage
Commission.”
|
Q:
|
What
do I need to do now?
|
A:
|
If
you hold common shares of Tenda, no further action by you is required
except that if you are not a resident of Brazil, you will be required to
comply with the registration requirements of Instruction No. 325 of the
CVM and Resolution No. 2,689 of the CMN, or Law No. 4,131, as the case may
be, as described below under “Part Two: Summary—General Terms and Effects
of the Restructuring” in order to
receive Gafisa shares upon the consummation of the Restructuring. The
Gafisa common shares are book-entry shares, and an entry or entries will
be made in the share registry of Gafisa to evidence the common shares you
will receive. See “Part Five: The Restructuring—Receipt of
Shares of Gafisa” for more details.
|
Q:
|
When
and where will the shareholders’ meetings take
place?
|
A:
|
The
EGM of Tenda is currently scheduled to take place at 9:00 a.m. (São Paulo
time) on December 14, 2009 on the 10th floor of Tenda’s headquarters
located at Avenida Engenheiro Luis Carlos Berrini, No. 1,376, 04571−000 −
São Paulo, SP − Brazil. The EGM of Gafisa at which the
Restructuring and certain related issues will be considered is currently
scheduled to take place at 2:00 pm (São Paulo time) on December 14, 2009
on the 19th floor of Gafisa’s headquarters located at Avenida das Nações
Unidas, No. 8,501, 05425−070 − São Paulo, SP − Brazil. However, these EGMs
will not occur until after the SEC
|
declares
effective the registration statement of which this preliminary
prospectus/information statements is a part. The CVM may suspend for up to
15 days the time period between the date of the call notice and the date
of the EGM scheduled to approve the Restructuring. See “Part
Three: Risk Factors—Risks Relating to the Restructuring—The CVM, the
Brazilian securities regulator, may suspend for up to 15 days the
shareholders’ meetings scheduled to approve the
Restructuring.”
|
Q:
|
What
do I need to do if I would like to vote my
shares?
|
A:
|
Gafisa. If you hold
common shares of Gafisa, you may attend the Gafisa EGM at which the
Restructuring will be considered, and you may vote. Under Brazilian law,
to vote shares at an EGM you must either appear at the meeting in person
and vote your shares or grant an appropriate power of attorney to another
shareholder, an executive officer of the applicable company or an attorney
who will appear at the meeting and vote your shares. The power of attorney
must have been granted, at most, one year prior to the shareholders’
meeting and must be certified by a notary public and legalized by the
Brazilian consulate located in the domicile of the grantor. A corporation
may be represented at the shareholders’ meeting by its officers. The
powers of attorney granted by the shareholders of Gafisa for
representation at the meeting should be deposited at the head office of
Gafisa, located at Av. Nações Unidas No. 8,501, 19th floor, 05425−070 −
São Paulo, SP − Brazil, at least 48 hours prior to the occurrence of the
EGM. If you hold Gafisa ADSs, you are not entitled to attend
the Gafisa EGM but will receive instructions from the Gafisa Depositary
about how to instruct the Gafisa Depositary to vote the Gafisa common
shares represented by your Gafisa
ADSs.
|
Q:
|
Who
can help answer my questions?
|
A:
|
If
you have any questions about the Restructuring, you can
contact:
|
|
You may also contact the
information agent for the
Restructuring:
|
|
In addition, if you are a holder
of Gafisa ADSs, you may also
contact:
|
|
·
|
Gafisa
and Tenda believe the Restructuring is likely to result in the creation of
a Brazilian national leader in the civil construction sector;
and
|
|
·
|
Gafisa
and Tenda believe the Restructuring is likely to permit Gafisa and Tenda
to derive economic benefits as a result of the larger scale of their
combined operations, to increase operational, commercial and
administrative efficiencies and to permit the reduction of redundant
costs, all allowing for the possibility of larger future investments by
Gafisa in its own business and the possibility of a higher sustainable
growth rate.
|
|
·
|
the
views of the management of Gafisa and Tenda set forth
above;
|
|
·
|
that
the final terms of the Restructuring approved by the boards were
consistent with the recommendations made by the Special Committee to the
Tenda board of directors;
|
|
·
|
that
the Restructuring will allow holders of common shares of Tenda to exchange
their securities at an equitable exchange ratio, as recommended by the
Special Committee and as determined by independent financial
advisors;
|
|
·
|
that
the Restructuring will allow holders of common shares of Tenda to receive
Gafisa common shares having substantially the same rights as their common
shares of Tenda but that instead are expected to enjoy greater liquidity
than the securities previously held by them;
and
|
|
·
|
that
the Restructuring will allow Tenda shareholders who do not want to become
shareholders in Gafisa a right to exercise appraisal rights but the
Restructuring will offer those Tenda shareholders who do not exercise
withdrawal rights an Exchange Ratio having a higher equivalent market
price for the Tenda shares
|
|
·
|
appoint
a representative in Brazil with powers to take actions relating to the
investment;
|
|
·
|
obtain
a taxpayer identification number from the Brazilian tax
authorities;
|
|
·
|
appoint
an authorized custodian in Brazil for the investments, which must be a
financial institution duly authorized by the Brazilian Central Bank and
CVM; and
|
|
·
|
through
its representative, register itself as a foreign investor with the CVM and
the investment with the Brazilian Central
Bank.
|
|
·
|
register
as a foreign direct investor with the Central
Bank;
|
|
·
|
obtain
a taxpayer identification number from the Brazilian tax
authorities;
|
|
·
|
appoint
a tax representative in Brazil; and
|
|
·
|
appoint
a representative in Brazil for service of process in respect of suits
based on the Brazilian corporate
law.
|
|
·
|
Gafisa
will be a significantly larger company and will own 100% of the capital
stock of Tenda. Gafisa’s interest in the net book value and net income
(loss) of Tenda will therefore increase to
100%;
|
|
·
|
subject
to satisfying applicable legal requirements, the Restructuring will
provide holders of Tenda shares with an opportunity to own ADSs instead of
shares by exchanging the Gafisa shares that they receive in the
Restructuring for Gafisa ADSs in accordance with the terms of the Gafisa
Deposit Agreement, a copy of which is included as exhibit 3.2 to the
registration statement of which this preliminary prospectus/information
statement is a part and which is incorporated by reference
herein;
|
|
·
|
the
holders of common shares of Tenda will receive common shares of Gafisa
which will be listed on the BM&FBOVESPA, and any such Gafisa shares
that are exchanged for Gafisa ADSs pursuant to the terms of the Gafisa
Deposit Agreement will be listed on the
NYSE;
|
|
·
|
the
common shares of Tenda will be delisted from the “Novo Mercado” of
BM&FBOVESPA, however Tenda will remain registered as a publicly-held
company with the CVM, until further decision from Gafisa on the
subject;
|
|
·
|
the
common shares of Gafisa will continue to be listed on the BM&FBOVESPA
and the Gafisa ADSs will continue to be listed on the NYSE and Gafisa will
continue to file periodic reports with the SEC pursuant to the Securities
Exchange Act of 1934, or the Exchange Act;
and
|
|
·
|
the
holders of common shares of Tenda that do not vote favorably to from the
Restructuring will have, for a period of 30 days from the date of the
publication of the minutes of Tenda’s EGM relating to the Restructuring,
the right to withdraw from Tenda and be reimbursed for the value of the
shares for which
|
|
·
|
Gafisa
will be considerably more leveraged than Tenda was previously. The
Restructuring will not, however, cause Gafisa to absorb any properties,
rights, assets, obligations or responsibilities of Tenda, which shall keep
its legal identity in full without succession. See “Part Three: Risk
Factors—Risks Relating to the
Restructuring.”
|
|
·
|
Because
Gafisa will be a larger company than Tenda, holders of Tenda shares will
generally have a lower ownership percentage in Gafisa than they currently
have in Tenda. Also, Gafisa
shareholders’ ownership percentage in Gafisa will be diluted as a result
of the issuance of the new Gafisa shares in the Restructuring. See “Part
Three: Risk Factors—Risks Relating to the
Restructuring.”
|
|
·
|
While
the Exchange Ratio was determined in accordance with all applicable laws
and regulations in Brazil and was recommended by the Special Committee,
this ratio may be higher or lower, from the perspective of value to
unaffiliated shareholders, than those that could be achieved through arm’s
length negotiations between unrelated parties. See “Part Five: The
Restructuring— Past Contacts, Transactions, Negotiations and Agreements”
and “Part Five: The Restructuring—Transactions and Arrangements Concerning
the Common Shares of Tenda.”
|
|
·
|
The
Exchange Ratio reflects the fact that Gafisa already owns, directly or
indirectly, a majority of the outstanding shares of Tenda and,
accordingly, the Restructuring does not involve a change of control. As a
result, the Exchange Ratio should not be expected to, and does not,
reflect a control premium.
|
|
·
|
The
Special Committee relied on the valuation reports of Itaú BBA and,
together with its financial adviser, reviewed the financial analyses of
Estáter and the appraisal report of APSIS. Furthermore, Estáter’s exchange
ratio range fell within Rothschild’s exchange ratio range. APSIS’ fees
will be paid entirely by the Companies, Itaú BBA’s fees will be paid
entirely by Tenda and Estáter’s and Rothschild’s fees will be paid
entirely by Gafisa.
|
Event
|
Date
|
|
Meeting
of the Board of Directors of Tenda to approve the submission of the
Restructuring to the shareholders
|
November
6, 2009
|
|
Meeting
of the Board of Directors of Gafisa to approve the submission of the
Restructuring to the shareholders
|
November
6, 2009
|
|
Announcement
of the Restructuring according to CVM Rules
|
November
9, 2009
|
|
Notice
of meeting of shareholders of Tenda to approve the Restructuring first
published in the Official Gazette
|
November
10, 2009
|
|
Notice
of meeting of shareholders of Gafisa to approve the Restructuring first
published in the Official Gazette
|
November
10, 2009
|
|
Notice
of meeting of shareholders of Tenda to approve the Restructuring first
published in the Valor Econômico Gazette
|
November
10, 2009
|
|
Notice
of meeting of shareholders of Gafisa to approve the Restructuring first
published in the Valor Econômico Gazette
|
November
10, 2009
|
|
Filling
of the Registration Statement on Form F-4 with the SEC
|
November
13, 2009
|
|
Mailing
of preliminary prospectus/information statement to U.S. holders of common
shares of Tenda and to holders of common shares and ADSs of
Gafisa
|
Commencing
on or about November 13, 2009
|
|
Effectiveness
of the Registration Statement on Form F-4 by the SEC
|
on
or about December 13, 2009
|
|
Meeting
of shareholders of Tenda to approve the Restructuring
|
December
14, 2009
|
|
Meeting
of shareholders of Gafisa to approve the Restructuring
|
December
14, 2009
|
|
Beginning
of period for exercise of withdrawal rights
|
on
or about December 15, 2009
|
|
End
of period for withdrawal rights
|
on
or about January 14, 2009
|
|
Expected
last day of trading of common shares of Tenda on the
BM&FBOVESPA
|
on
or about January 19, 2009
|
|
Expected
first day of trading of newly issued Gafisa common shares on the
BM&FBOVESPA
|
on
or about January 20, 2009
|
|
·
|
Gafisa’s
audited consolidated financial statements prepared in accordance with
Brazilian GAAP as of December 31, 2008, 2007 and 2006 and for the years
then ended, which include a reconciliation to U.S. GAAP of net income and
shareholders’ equity as of and for the years ended December 31, 2008, 2007
and 2006, included in the Form 6-K filed on November 13, 2009 with the SEC
and which is incorporated by reference
herein;
|
|
·
|
Gafisa’s
unaudited interim consolidated financial statements prepared in accordance
with Brazilian GAAP as of September 30, 2009 and for the nine-month
periods ended September 30, 2009 and 2008, which includes a reconciliation
to U.S. GAAP of shareholders’ equity as of September 30, 2009 and December
31, 2008 and net income for the nine-month periods ended September 30,
2009 and 2008, included elsewhere in this preliminary
prospectus/information statement;
|
|
·
|
Tenda’s
audited consolidated financial statements prepared in accordance with
Brazilian GAAP as of December 31, 2008 and 2007 and for the years ended
December 31, 2008, 2007 and 2006, included elsewhere in this preliminary
prospectus/information statement;
and
|
|
·
|
Tenda’s
unaudited interim consolidated financial statements prepared in accordance
with Brazilian GAAP as of September 30, 2009 and for the nine-month
periods ended September 30, 2009 and 2008, included elsewhere in this
preliminary prospectus/information
statement.
|
As
of and for the nine-month period ended September 30,
|
As
of and for the year ended December 31,
|
|||||||||||||||||||||||||||
2009
|
2008
|
2008
|
2007(1)
|
2006(1)
|
2005(1)
|
2004(1)
|
||||||||||||||||||||||
(in
thousands of reais except per share, per ADS and operating
data)(2)
|
||||||||||||||||||||||||||||
Consolidated
statement of income data:
|
||||||||||||||||||||||||||||
Brazilian
GAAP:
|
||||||||||||||||||||||||||||
Gross
operating revenue
|
2,214,469 | 1,237,400 | 1,805,468 | 1,251,894 | 681,791 | 480,774 | 439,254 | |||||||||||||||||||||
Net
operating revenue
|
2,124,806 | 1,192,559 | 1,740,404 | 1,204,287 | 648,158 | 457,024 | 416,876 | |||||||||||||||||||||
Operating
costs
|
(1,523,640 | ) | (814,201 | ) | (1,214,401 | ) | (867,996 | ) | (464,766 | ) | (318,211 | ) | (292,391 | ) | ||||||||||||||
Gross
profit
|
601,166 | 378,358 | 526,003 | 336,291 | 183,392 | 138,813 | 124,485 | |||||||||||||||||||||
Operating
expenses, net(2)
|
(256,574 | ) | (235,403 | ) | (357,798 | ) | (236,861 | ) | (118,914 | ) | (79,355 | ) | (59,688 | ) | ||||||||||||||
Financial
income (expenses), net
|
(52,937 | ) | 40,117 | 41,846 | 28,628 | (11,943 | ) | (31,162 | ) | (34,325 | ) | |||||||||||||||||
Non-operating
income (expenses), net
|
— | — | — | — | — | (1,024 | ) | (1,450 | ) | |||||||||||||||||||
Income
before taxes on income, and
noncontrolling interests
|
276,593 | 183,072 | 210,051 | 128,058 | 52,535 | 27,272 | 29,022 | |||||||||||||||||||||
Taxes
on income
|
(64,904 | ) | (50,456 | ) | (43,397 | ) | (30,372 | ) | (8,525 | ) | 3,405 | (5,575 | ) | |||||||||||||||
Noncontrolling interests
|
(53,471 | ) | (35,540 | ) | (56,733 | ) | (6,046 | ) | — | — | — | |||||||||||||||||
Net
income
|
158,218 | 97,076 | 109,921 | 91,640 | 44,010 | 30,677 | 23,447 | |||||||||||||||||||||
Share
and ADS data(3):
|
||||||||||||||||||||||||||||
Earnings
per share—R$ per share
|
1.2123 | 0.7470 | 0.8458 | 0.7079 | 0.4258 | 1.2457 | 1.2188 | |||||||||||||||||||||
Number
of preferred shares outstanding as at end of period
|
— | — | — | — | — | 16,222,209 | 11,037,742 | |||||||||||||||||||||
Number
of common shares outstanding as at end of period
|
130,508,346 | 129,962,546 | 129,962,546 | 129,452,121 | 103,369,950 | 8,404,185 | 8,199,743 | |||||||||||||||||||||
Earnings
per ADS—R$ per ADS (pro forma)(4)
|
2.4246 | 1.4940 | 1.6916 | 1.4158 | 0.8516 | 2.4914 | 2.4376 | |||||||||||||||||||||
U.S.
GAAP:
|
||||||||||||||||||||||||||||
Net
operating revenue
|
1,674,652 | 1,148,938 | 1,692,706 | 1,090,632 | 674,740 | 439,011 | 442,913 | |||||||||||||||||||||
Operating
costs
|
(1,198,047 | ) | (799,519 | ) | (1,198,256 | ) | (865,756 | ) | (503,172 | ) | (329,775 | ) | (339,653 | ) | ||||||||||||||
Gross
profit
|
476,605 | 349,419 | 494,450 | 224,876 | 171,568 | 109,236 | 103,260 | |||||||||||||||||||||
Operating
expenses, net
|
(431,279 | ) | (197,150 | ) | (142,771 | ) | (190,430 | ) | (139,188 | ) | (77,305 | ) | (52,770 | ) | ||||||||||||||
Financial
income (expenses), net
|
(55,194 | ) | 38,989 | 40,198 | 27,243 | 4,022 | (17,684 | ) | (31,645 | ) | ||||||||||||||||||
Income
(loss) before income taxes, equity in results and
noncontrolling interests
|
(9,868 | ) | 191,258 | 391,877 | 61,689 | 36,402 | 14,247 | 18,845 |
As
of and for the nine-month period ended September 30,
|
As
of and for the year ended December 31,
|
|||||||||||||||||||||||||||
2009
|
2008
|
2008
|
2007(1)
|
2006(1)
|
2005(1)
|
2004(1)
|
||||||||||||||||||||||
(in
thousands of reais except per share, per ADS and operating
data)(2)
|
||||||||||||||||||||||||||||
Taxes
on income
|
(37,250 | ) | (44,248 | ) | (70,756 | ) | (1,988 | ) | (11,187 | ) | (1,886 | ) | (3,530 | ) | ||||||||||||||
Equity
in results
|
11,063 | 27,688 | 26,257 | 8,499 | 894 | 22,593 | 11,674 | |||||||||||||||||||||
Noncontrolling
interests
|
(17,892 | ) | (32,205 | ) | (47,900 | ) | (4,738 | ) | (1,125 | ) | (571 | ) | 252 | |||||||||||||||
Cumulative
effect of a change in an accounting principle:
|
— | — | — | — | (157 | ) | — | — | ||||||||||||||||||||
Net
income(loss)
|
(36,055 | ) | 174,698 | 347,558 | 68,200 | 25,952 | 34,954 | 26,989 | ||||||||||||||||||||
Less:
Net income attributable to the noncontrolling interests
|
(17,892 | ) | (32,205 | ) | (47,900 | ) | (4,738 | ) | (1,125 | ) | (571 | ) | 252 | |||||||||||||||
Net
income (loss) attributable to Gafisa (5)
|
(53,947 | ) | 142,493 | 299,658 | 63,462 | 24,827 | 34,383 | 27,241 | ||||||||||||||||||||
Per
share data(3):
|
||||||||||||||||||||||||||||
Per
preferred share data—R$ per share:
|
||||||||||||||||||||||||||||
Earnings
per share—Basic
|
— | — | — | — | 0.1518 | 0.6056 | 0.4910 | |||||||||||||||||||||
Earnings
per share—Diluted
|
— | — | — | — | 0.1498 | 0.6023 | 0.4910 | |||||||||||||||||||||
Weighted
average number of shares outstanding – in thousands
|
— | — | — | — | 1,701 | 42,803 | 33,113 | |||||||||||||||||||||
Per
common share data—R$ per share:
|
||||||||||||||||||||||||||||
Earnings
(loss) per share—Basic
|
(0.4144 | ) | 1.0997 | 2.3109 | 0.5036 | 0.2487 | 0.3469 | 0.4464 | ||||||||||||||||||||
Earnings
(loss) per share—Diluted
|
(0.4135 | ) | 1.0940 | 2.3024 | 0.5013 | 0.2458 | 0.3453 | 0.4464 | ||||||||||||||||||||
Weighted
average number of shares outstanding – in thousands
|
130,196 | 129,572 | 129,671 | 126,032 | 98,796 | 24,394 | 24,599 | |||||||||||||||||||||
Dividends
declared and interest on shareholders’ equity
|
— | — | 26,104 | 26,981 | 10,938 | — | — | |||||||||||||||||||||
Per
ADS data—R$ per ADS(4):
|
||||||||||||||||||||||||||||
Earnings
(loss) per ADS—Basic (pro forma)(4)
|
(0.8288 | ) | 2.1994 | 4.6218 | 1.0072 | 0.4974 | 0.6938 | 0.8928 | ||||||||||||||||||||
Earnings
(loss) per ADS—Diluted (pro forma)(4)
|
(0.8270 | ) | 2.1880 | 4.6048 | 1.0026 | 0.4916 | 0.6907 | 0.8928 | ||||||||||||||||||||
Weighted
average number of ADSs outstanding – in thousands
|
64,098 | 64,786 | 64,836 | 63,016 | 48,398 | 12,197 | 12,300 | |||||||||||||||||||||
Dividends
declared and interest on shareholders’ equity
|
— | — | 26,104 | 26,981 | 10,938 | — | — | |||||||||||||||||||||
Consolidated
balance sheet data:
|
||||||||||||||||||||||||||||
Brazilian
GAAP:
|
||||||||||||||||||||||||||||
Cash,
cash equivalents and marketable securities
|
948,350 | — | 605,502 | 517,420 | 266,159 | 133,891 | 45,888 | |||||||||||||||||||||
Restricted
cash in guarantee to loans
|
151,337 | — | — | — | — | — | — | |||||||||||||||||||||
Properties
for sale
|
1,762,432 | — | 2,028,976 | 1,022,279 | 486,397 | 304,329 | 237,113 | |||||||||||||||||||||
Working
capital(6)
|
2,523,529 | — | 2,448,305 | 1,315,406 | 926,866 | 464,589 | 205,972 | |||||||||||||||||||||
Total
assets
|
6,931,539 | — | 5,538,858 | 3,004,785 | 1,558,590 | 944,619 | 748,508 | |||||||||||||||||||||
Total
debt(7)
|
2,531,727 | — | 1,552,121 | 695,380 | 295,445 | 316,933 | 151,537 | |||||||||||||||||||||
Total
shareholders’ equity
|
1,783,476 | — | 1,612,419 | 1,498,728 | 807,433 | 270,188 | 146,469 | |||||||||||||||||||||
U.S.
GAAP:
|
— | |||||||||||||||||||||||||||
Cash
and cash equivalents
|
1,075,975 | — | 510,504 | 512,185 | 260,919 | 136,153 | 42,803 | |||||||||||||||||||||
Properties
for sale
|
2,192,572 | — | 2,208,124 | 1,140,280 | 483,411 | 376,613 | 214,744 | |||||||||||||||||||||
Working
capital(6)
|
2,350,812 | — | 2,510,382 | 1,295,176 | 788,351 | 473,794 | 195,392 | |||||||||||||||||||||
Total
assets
|
6,553,916 | — | 5,179,403 | 2,889,040 | 1,633,886 | 901,387 | 601,220 | |||||||||||||||||||||
Total
debt(7)
|
2,493,447 | — | 1,525,138 | 686,524 | 289,416 | 294,149 | 141,476 | |||||||||||||||||||||
Total
Gafisa shareholders’ equity
|
1,673,528 | — | 1,723,095 | 1,441,870 | 795,251 | 290,604 | 160,812 | |||||||||||||||||||||
Noncontrolling
interests
|
525,377 | — | 451,342 | 39,756 | 1,050 | 197 | (98 | ) | ||||||||||||||||||||
Total
shareholders’ equity
|
2,198,905 | — | 2,174,437 | 1,481,626 | 796,301 | 290,801 | 160,714 |
As
of and for the nine-month period ended September 30,
|
As
of and for the year ended December 31,
|
|||||||||||||||||||||||||||
2009
|
2008
|
2008
|
2007(1)
|
2006(1)
|
2005(1)
|
2004(1)
|
||||||||||||||||||||||
(in
thousands of reais except per share, per ADS and operating
data)(2)
|
||||||||||||||||||||||||||||
Consolidated
cash flow Data:
|
||||||||||||||||||||||||||||
Brazilian
GAAP
|
||||||||||||||||||||||||||||
Cash
flow provided by (used in):
|
||||||||||||||||||||||||||||
Operating
activities
|
(445,917 | ) | (620,411 | ) | (812,512 | ) | (451,929 | ) | (271,188 | ) | (112,947 | ) | 23,616 | |||||||||||||||
Investing
activities
|
(109,408 | ) | (32,714 | ) | (78,300 | ) | (149,290 | ) | (25,609 | ) | (5,576 | ) | (1,509 | ) | ||||||||||||||
Financing
activities
|
975,101 | 913,133 | 911,817 | 842,629 | 429,065 | 206,526 | 10,601 |
(1)
|
We
revised our Brazilian GAAP financial statements as of and for the years
ended December 31, 2007 and 2006 when we adopted, beginning January 1,
2006, the changes introduced by Law 11,638/07 which were effective in 2008
and the new accounting standards issued by the CPC in 2008. Brazilian GAAP
encourages companies to make such revisions in order to provide
comparative information within the financial statements. See note 2(a) to
our financial statements incorporated by reference in this preliminary
prospectus/information statement for this amendment and other
reclassifications to our Brazilian GAAP financial statements. However,
selected financial information presented as of and for the years ended
December 31, 2005 and 2004 has not been presented on the basis of the new
accounting policies introduced in 2008, as the cost and time required to
prepare such information would be prohibitive. As a result, such
information is not comparative to the financial information reported
herein as of and for the years ended December 31, 2008, 2007 and
2006.
|
(2)
|
Excludes
stock issuance expenses. Includes amortization of gain on partial sale of
FIT and others, net (nine-month period ended September 30, 2005 — R$
157,800; year ended December 31, 2008 — R$
41,008.
|
(3)
|
On
January 26, 2006, all our preferred shares were converted into common
shares. On January 27, 2006, a stock split of our common shares was
approved, giving effect to the split of one existing share into three
newly issued shares, increasing the number of shares from 27,774,775 to
83,324,316. All information relating to the numbers of shares and ADSs
have been adjusted retroactively to reflect the share split on January 27,
2006. All U.S. GAAP earnings per share and ADS amounts have been adjusted
retroactively to reflect the share split on January 27, 2006. Brazilian
GAAP earnings per share and ADS amounts have not been adjusted
retrospectively to reflect the share split on January 27,
2006.
|
(4)
|
Earnings
per ADS is calculated based on each ADS representing two common
shares.
|
(5)
|
The
following table sets forth reconciliation from U.S. GAAP net income to
U.S. GAAP net income available to common
shareholders:
|
Nine-month
period ended
September
30,
|
Year
ended December 31,
|
|||||||||||||||||||||||||||
2009
|
2008
|
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||||||||
(in
thousands of reais, except per share
data)
|
||||||||||||||||||||||||||||
Reconciliation
from U.S. GAAP net income (loss) to U.S. GAAP net income attributable
to Gafisa (loss) available to common shareholders
(Basic):
|
||||||||||||||||||||||||||||
U.S.
GAAP net income (loss) (Basic)
|
(53,497 | ) | 142,493 | 299,658 | 63,462 | 24,827 | 34,383 | 27,241 | ||||||||||||||||||||
Preferred
Class G exchange(8)
|
— | — | — | — | — | (9,586 | ) | — | ||||||||||||||||||||
Undistributed
earnings for Preferred Shareholders (Basic earnings)
|
— | — | — | — | (258 | ) | (16,334 | ) | (16,260 | ) | ||||||||||||||||||
U.S.
GAAP net income (loss) available to common shareholders (Basic
earnings)
|
(53,497 | ) | 142,493 | 299,658 | 63,462 | 24,569 | 8,463 | 10,981 | ||||||||||||||||||||
Reconciliation
from U.S. GAAP net income (loss) to U.S. GAAP net income
(loss) available to common shareholders (Diluted):
|
— | |||||||||||||||||||||||||||
U.S.
GAAP net income (loss)
|
(53,497 | ) | 142,493 | 299,658 | 63,462 | 24,827 | 34,383 | 27,241 | ||||||||||||||||||||
Preferred
Class G exchange(8)
|
— | — | — | — | — | (9,586 | ) | — | ||||||||||||||||||||
Undistributed
earnings for Preferred Shareholders (Diluted earnings)
|
— | — | — | — | (259 | ) | (16,373 | ) | (16,260 | ) | ||||||||||||||||||
U.S.
GAAP net income (loss) available to common shareholders (Diluted
earnings)
|
(53,497 | ) | 142,493 | 299,658 | 63,462 | 24,568 | 8,424 | 10,981 |
(6)
|
Working
capital equals current assets less current
liabilities.
|
(7)
|
Total
debt comprises loans, financings and current and non-current debentures.
Amounts exclude loans from real estate development
partners.
|
(8)
|
Pursuant
to EITF Topic D-42 “The Effect on the Calculation of Earnings per Share
for the Redemption or Induced Conversion of Preferred Stock,” following
the exchange of Class A for Class G Preferred shares, the excess of the
fair value of the consideration transferred to the holders of the
preferred stock over the carrying amount of the preferred stock in the
balance sheet was subtracted from net income to arrive at net earnings
available to common shareholders in the calculation of earnings per share.
For purposes of displaying earnings per share, the amount is treated in a
manner similar to the treatment of dividends paid to the holders of the
preferred shares. The conceptual return or dividends on preferred shares
are deducted from net earnings to arrive at net earnings available to
common shareholders.
|
As
of and for the
nine-month
period ended
September
30,
|
As
of and for the year ended December 31,
|
|||||||||||||||||||||||||||
2009
|
2008
|
2008
|
2007(1)
|
2006(1)
|
2005(1)
|
2004(1)
|
||||||||||||||||||||||
(in
thousands of reais, except per share data)
|
||||||||||||||||||||||||||||
Consolidated
Statement of income data:
|
||||||||||||||||||||||||||||
Brazilian
GAAP:
|
||||||||||||||||||||||||||||
Gross
operating revenue
|
751,080 | 332,782 | 504,502 | 277,514 | 81,213 | 99,253 | 83,194 | |||||||||||||||||||||
Net
operating revenue
|
723,137 | 317,755 | 485,248 | 265,857 | 77,315 | 59,769 | 43,237 | |||||||||||||||||||||
Operating
costs
|
(493,401 | ) | (213,437 | ) | (317,852 | ) | (181,942 | ) | (52,303 | ) | (41,482 | ) | (28,447 | ) | ||||||||||||||
Gross
profit
|
229,736 | 104,318 | 167,396 | 83,915 | 25,012 | 18,287 | 14,790 | |||||||||||||||||||||
Operating
expenses, net
|
(157,737 | ) | (150,168 | ) | (225,338 | ) | (60,526 | ) | (16,479 | ) | (9,401 | ) | (8,666 | ) | ||||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||||
Income
before taxes on income
|
71,999 | (45,850 | ) | (57,942 | ) | 23,389 | 8,533 | 8,886 | 6,124 | |||||||||||||||||||
Taxes
on income
|
(16,288 | ) | (11,164 | ) | 19,733 | (4,657 | ) | (5,657 | ) | (6,221 | ) | (1,867 | ) | |||||||||||||||
Net
income (loss)(2)
|
55,711 | (57,014 | ) | (38,209 | ) | 18,732 | 2,876 | 2,665 | 4,257 | |||||||||||||||||||
Share
data:
|
||||||||||||||||||||||||||||
Earnings
(loss) per share—R$ per thousand shares
|
0.14 | (0.36 | ) | (0.10 | ) | 0.12 | 1.65 | 1.53 | 2,45 | |||||||||||||||||||
Number
of preferred shares outstanding as at end of period
|
— | — | — | — | 540 | 540 | 540 | |||||||||||||||||||||
Number
of common shares outstanding as at end of period
|
400,652 | 160,261 | 400,652 | 160,261 | 1,740 | 1,740 | 1,740 | |||||||||||||||||||||
U.S.
GAAP
|
||||||||||||||||||||||||||||
Gross
operating revenue
|
404,361 | — | — | — | — | — | — | |||||||||||||||||||||
Net
operating revenue
|
386,965 | — | — | — | — | — | — | |||||||||||||||||||||
Operating
costs
|
(256,179 | ) | — | — | — | — | — | — | ||||||||||||||||||||
Gross
profit
|
130,786 | — | — | — | — | — | — | |||||||||||||||||||||
Operating
expenses, net
|
(155,384 | ) | — | — | — | — | — | — | ||||||||||||||||||||
Financial
income (expenses), net
|
969 | — | — | — | — | — | — | |||||||||||||||||||||
Loss before
income taxes, equity in results and
noncontrolling interests
|
(23,609 | ) | — | — | — | — | — | — | ||||||||||||||||||||
Taxes
on income
|
9,140 | — | — | — | — | — | — | |||||||||||||||||||||
Noncontrolling interests
|
3,727 | — | — | — | — | — | — | |||||||||||||||||||||
Net
loss
|
(10,742 | ) | — | — | — | — | — | — | ||||||||||||||||||||
Per
share data - R$ per thousand shares:
|
||||||||||||||||||||||||||||
Earnings
(loss) per share—Basic
|
(0.027 | ) | — | — | — | — | — | — | ||||||||||||||||||||
Earnings
per share—Diluted
|
(0.027 | ) | — | — | — | — | — | — | ||||||||||||||||||||
Consolidated
Balance sheet data:
|
||||||||||||||||||||||||||||
Brazilian
GAAP
|
- | |||||||||||||||||||||||||||
Cash,
bank and financial investments
|
574,563 | 92,995 | 201,887 | 400,512 | 509 | 884 |
1,082
|
|||||||||||||||||||||
Properties
for sale
|
357,130 | 124,687 | 401,852 | 128,742 | 5,058 | 10,970 |
15,457
|
|
||||||||||||||||||||
Working
capital
|
1,139,449 | 221,501 | 532,115 | 473,498 | (1,902 | ) | 3,826 |
11,736
|
||||||||||||||||||||
Total
assets
|
2,383,672 | 1,005,318 | 1,544,030 | 927,186 | 102,317 | 75,689 |
60,611
|
|||||||||||||||||||||
Total
debt
|
747,030 | 104,864 | 126,450 | 24,098 | 5,519 | 1,819 |
1,700
|
|||||||||||||||||||||
Total
shareholders’ equity
|
1,121,373 | 629,745 | 1,062,214 | 683,677 | 8,254 | 14,445 |
11,780
|
|||||||||||||||||||||
Consolidated
Cash flow data:
|
||||||||||||||||||||||||||||
Brazilian
GAAP
|
||||||||||||||||||||||||||||
Cash
flows from (used in) operating activities
|
(261,192 | ) | (381,117 | ) | (706,993 | ) | (240,564 | ) | (3,502 | ) | (209 | ) | (1,407 | ) | ||||||||||||||
Investing
activities
|
(14,658 | ) | (2,443 | ) | (16,578 | ) | (10,401 | ) | (279 | ) | (57 | ) | (792 | ) | ||||||||||||||
Financing
activities
|
586,422 | 76,103 | 504,720 | 650,968 | 3,406 | 68 | 1,282 |
(1)
|
We
revised our Brazilian GAAP financial statements as of and for the years
ended December 31, 2007 and 2006 when we adopted, beginning January 1,
2006, the changes introduced by Law 11,638/07 and the new accounting
standards issued by the CPC in 2008. Brazilian GAAP encourages companies
to make such revisions from the date the accounting changes were
introduced in order to provide comparative information within the
financial statements. See note 2(a) to our financial statements included
elsewhere in this annual report for this amendment and other
reclassifications to our Brazilian GAAP financial statements. However,
selected financial information presented as of and for the years ended
December 31, 2006, 2005 and 2004 has not been represented on the basis of
the new accounting policies introduced in 2008, as the cost and time
required to prepare such information would be prohibitive. As a result,
such information is not comparative to the financial information reported
herein as of and for the years ended December 31, 2008, 2007 and
2006.
|
|
·
|
Gafisa’s
acquisition of 60% of Tenda on October 21,
2008;
|
|
·
|
the
effects of the Restructuring;
|
|
·
|
recording
of amortization of intangible assets allocated from the business
combination as if the purchase price allocation under U.S. GAAP had
occurred on January 1, 2008, as applicable;
and
|
|
·
|
the
effect of deferred income taxes on the pro forma
adjustments.
|
Historical
Gafisa(1)
|
Effects
of the Restructuring
|
Pro
forma adjustments
|
Pro
forma Gafisa
|
|||||||||||||
(in
thousands of reais)
|
||||||||||||||||
ASSETS
|
||||||||||||||||
Current assets
|
||||||||||||||||
Cash,
cash equivalents and marketable securities
|
948,350 | – | – | 948,350 | ||||||||||||
Restricted
cash in guarantee to loans
|
151,337 | – | – | 151,337 | ||||||||||||
Receivables
from clients
|
1,718,110 | – | – | 1,718,110 | ||||||||||||
Properties
for sales
|
1,376,236 | – | – | 1,376,236 | ||||||||||||
Other
accounts receivable
|
93,722 | – | – | 93,722 | ||||||||||||
Deferred
taxes
|
13,099 | – | – | 13,099 | ||||||||||||
Deferred
selling expenses
|
7,205 | – | – | 7,205 | ||||||||||||
Prepaid
expenses
|
13,522 | – | – | 13,522 | ||||||||||||
4,321,581 | – | – | 4,321,581 | |||||||||||||
Non-current
assets
|
||||||||||||||||
Receivables
from clients
|
1,662,300 | – | – | 1,662,300 | ||||||||||||
Properties
for sale
|
386,196 | – | – | 386,196 | ||||||||||||
Deferred
taxes
|
250,846 | – | – | 250,846 | ||||||||||||
Escrow
deposits
|
2,489 | – | – | 2,489 | ||||||||||||
Other
|
49,651 | – | – | 49,651 | ||||||||||||
2,351,482 | – | – | 2,351,482 | |||||||||||||
Goodwill, net
|
195,088 | – | – | 195,088 | ||||||||||||
Property and equipment,
net
|
53,698 | – | – | 53,698 | ||||||||||||
Intangible
assets
|
9,690 | – | – | 9,690 | ||||||||||||
258,476 | – | – | 258,476 | |||||||||||||
Total assets
|
6,931,539 | – | – | 6,931,539 | ||||||||||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||||||||||
Current
liabilities
|
||||||||||||||||
Loans
and financing, net of swaps
|
570,307 | – | – | 570,307 | ||||||||||||
Debentures
|
80,781 | – | – | 80,781 | ||||||||||||
Obligations
for purchase of land and advances from clients
|
488,935 | – | – | 488,935 | ||||||||||||
Materials
and service suppliers
|
194,302 | – | – | 194,302 | ||||||||||||
Taxes
and contributions
|
132,216 | – | – | 132,216 | ||||||||||||
Salaries,
payroll charges and profit sharing
|
61,206 | – | – | 61,206 | ||||||||||||
Mandatory
dividends
|
26,106 | – | – | 26,106 | ||||||||||||
Provision
for contingencies
|
10,512 | – | – | 10,512 | ||||||||||||
Deferred
taxes
|
52,375 | – | – | 52,375 | ||||||||||||
Other
accounts payable
|
181,312 | – | – | 181,312 | ||||||||||||
1,798,052 | – | – | 1,798,052 | |||||||||||||
Non-current
liabilities
|
||||||||||||||||
Loans
and financing, net of swaps
|
636,639 | – | – | 636,639 | ||||||||||||
Debentures
|
1,244,000 | – | – | 1,244,000 | ||||||||||||
Obligations
for purchase of land and advances from clients
|
147,168 | – | – | 147,168 | ||||||||||||
Deferred
taxes
|
322,870 | – | – | 322,870 | ||||||||||||
Provision
for contingencies
|
59,509 | – | – | 59,509 | ||||||||||||
Deferred
gain on sale of investment
|
11,594 | – | – | 11,594 | ||||||||||||
Negative
goodwill on acquisition of subsidiaries
|
12,499 | – | – | 12,499 | ||||||||||||
Other
accounts payable
|
362,843 | – | – | 362,843 | ||||||||||||
2,797,122 | – | – | 2,797,122 | |||||||||||||
Noncontrolling interests
|
552,889 | (448,495 | )(3) | – | 104,394 | |||||||||||
Shareholders’
equity
|
1,783,476 | 448,495 | (3) | – | 2,231,971 | |||||||||||
Total liabilities and
shareholders’ equity
|
6,931,539 | – | – | 6,931,539 | ||||||||||||
Shareholders’ equity under
Brazilian GAAP
|
1,783,476 | 448,495 | – | 2,231,971 | ||||||||||||
Total
U.S. GAAP adjustments
|
(109,948 | )(2) | (37,273 | )(4) | – | (147,221 | ) |
Historical
Gafisa(1)
|
Effects
of the Restructuring
|
Pro
forma adjustments
|
Pro
forma Gafisa
|
|||||||||||||
(in
thousands of reais)
|
||||||||||||||||
Shareholders’ equity under U.S.
GAAP
|
2,336,365 | 411,222 | – | 2,084,750 | ||||||||||||
Noncontrolling
interests
|
525,377 | (411,222 | ) | – | 114,155 | |||||||||||
Shareholders’ equity
attributable to Gafisa
|
2,198,905 | – | – | 2,198,905 |
(1)
|
Represents
the historical consolidated financial information of Gafisa S.A., which
includes Gafisa’s 60% ownership interest in
Tenda.
|
(2)
|
Reflects
the reconciling items between Brazilian GAAP to U.S. GAAP and the related
references as they refer to Gafisa which are described in Gafisa’s
unaudited interim consolidated financial statements as of September 30,
2009 and for the nine months ended September 30, 2009 and 2008, included
elsewhere in this prospectus/information
statement.
|
(3)
|
Reflects
the exchange of Gafisa’s common shares for common shares of
Tenda.
|
(4)
|
Reflects
U.S. GAAP adjustments to noncontrolling interest in
Tenda.
|
Historical
Gafisa(1)
|
Historical
Tenda(2)
|
Eliminations(3)
|
Effects
of the Restructuring
|
Pro
forma adjustments
|
Pro
forma Gafisa
|
|||||||||||||||||||
(in
thousands of reais)
|
||||||||||||||||||||||||
Gross
operating revenue
|
||||||||||||||||||||||||
Real
estate development and sales
|
1,768,200 | 504,502 | (169,026 | ) | — | — | 2,103,676 | |||||||||||||||||
Construction
services rendered, net of costs
|
37,268 | — |
—
|
— | — | 37,268 | ||||||||||||||||||
Taxes
on services and revenues
|
(65,064 | ) | (19,254 | ) | 4,757 | — | — | (79,561 | ) | |||||||||||||||
Net
operating revenue
|
1,740,404 | 485,248 | (164,269 | ) | — | — | 2,061,383 | |||||||||||||||||
Operating
costs
|
||||||||||||||||||||||||
Real
estate development costs
|
(1,214,401 | ) | (317,852 | ) | 111,920 | — | — | (1,420,333 | ) | |||||||||||||||
Gross
profit
|
526,003 | 167,396 | (52,349 | ) | — | — | 641,050 | |||||||||||||||||
Operating
(expenses) income
|
||||||||||||||||||||||||
Selling
expenses
|
(154,401 | ) | (87,603 | ) | 24,147 | — | — | (217,857 | ) | |||||||||||||||
General
and administrative expenses
|
(180,839 | ) | (137,561 | ) | 28,234 | — | — | (290,166 | ) | |||||||||||||||
Depreciation
and amortization
|
(52,635 | ) | (11,499 | ) | 4,213 | — | — | (59,921 | ) | |||||||||||||||
Amortization
of gain on partial sale of FIT
|
41,008 |
|
|
— | (41,008 | )(5) | — | |||||||||||||||||
Other,
net
|
(10,931 | ) | 1,679 | 1,171 | — | — | (8,081 | ) | ||||||||||||||||
Operating
profit (loss) before financial income (expenses)
|
168,205 | (67,588 | ) | 5,416 | — | (41,008 | ) | 65,025 | ||||||||||||||||
Financial
income (expenses)
|
||||||||||||||||||||||||
Financial
expenses
|
(61,008 | ) | (11,512 | ) | 2,788 | — | — | (69,732 | ) | |||||||||||||||
Financial
income
|
102,854 | 21,159 | (5,505 | ) | — | — | 118,508 | |||||||||||||||||
Income
(loss) before taxes on income and
noncontrolling interests
|
210,051 | (57,941 | ) | 2,699 | — | (41,008 | ) | 113,801 | ||||||||||||||||
Current
income taxes
|
(24,437 | ) | (1,220 | ) | 1,193 | — | — | (24,464 | ) | |||||||||||||||
Deferred
tax
|
(18,960 | ) | 20,953 | (30,034 | ) | — | 13,943 | (6) | (14,098 | ) | ||||||||||||||
Total
tax expense
|
(43,397 | ) | 19,733 | (28,841 | ) | — | 13,943 | (38,562 | ) | |||||||||||||||
Income
(loss) before noncontrolling interests
|
166,654 | (38,208 | ) | (26,142 | ) | — | (27,065 | ) | 75,239 | |||||||||||||||
Noncontrolling interests
|
(56,733 | ) |
|
– | 10,457 | (4) |
—
|
(46,276 | ) | |||||||||||||||
Net
income (loss) under Brazilian GAAP
|
109,921 | (38,208 | ) | (26,142 | ) | 10,457 | (27,065 | ) | 28,963 | |||||||||||||||
Total
U.S. GAAP adjustments
|
189,737 | (7) | (25,544 | )(8) | 7,040 | (8) | (2,816 | )(9) | (180,050 | )(10) | (11,633 | ) | ||||||||||||
Net
income (loss) attributable to Gafisa under U.S. GAAP
|
299,658 | (63,752 | ) | (19,102 | ) | 7,641 | (207,115 | ) | 17,330 | |||||||||||||||
Brazilian
GAAP pro forma shares outstanding as of December 31, 2008 (in
thousands)
|
162,847 | (11) | ||||||||||||||||||||||
Brazilian
GAAP pro forma earnings per share as of December 31, 2008
|
0.1779 | |||||||||||||||||||||||
Brazilian
GAAP dividends declared per share as of December 31, 2008
|
0.1613 | |||||||||||||||||||||||
U.S.
GAAP weighted average number of shares outstanding (in
thousands)
|
162.555 | (12) | ||||||||||||||||||||||
U.S.
GAAP pro forma earnings per share
Basic
|
0.1066 | |||||||||||||||||||||||
Diluted
|
0.1063 | |||||||||||||||||||||||
U.S.
GAAP dividends declared per shares (weighted-average)
|
0.1606 |
Historical
Gafisa(1)
|
Effects
of the Restructuring
|
Pro
forma adjustments
|
Pro
forma Gafisa
|
|||||||||||||
(in
thousands of reais)
|
||||||||||||||||
Gross
operating revenue
|
||||||||||||||||
Real
estate development and sales
|
2,184,117 | — | — | 2,184,117 | ||||||||||||
Construction
services rendered, net of costs
|
30,352 | — | — | 30,352 | ||||||||||||
Taxes
on services and revenues
|
(89,663 | ) | — | — | (89,663 | ) | ||||||||||
Net
operating revenue
|
2,124,806 | — | — | 2,124,806 | ||||||||||||
Operating
costs
|
||||||||||||||||
Real
estate development costs
|
(1,523,640 | ) | — | — | (1,523,640 | ) | ||||||||||
Gross
profit
|
601,166 | — | — | 601,166 | ||||||||||||
Operating
(expenses) income
|
||||||||||||||||
Selling
expenses
|
(153,344 | ) | — | — | (153,344 | ) | ||||||||||
General
and administrative expenses
|
(172,832 | ) | — | — | (172,832 | ) | ||||||||||
Depreciation
and amortization
|
(24,166 | ) | — | — | (24,166 | ) | ||||||||||
Amortization
of gain on partial sale of FIT
|
157,800 | — | (157,800 | )(5) | — | |||||||||||
Other,
net
|
(79,094 | ) | — | — | (79,094 | ) | ||||||||||
Operating
profit before financial income (expenses)
|
329,530 | — | (157,800 | ) | 171,730 | |||||||||||
Financial
income (expenses)
|
||||||||||||||||
Financial
expenses
|
(159,336 | ) | — | — | (159,336 | ) | ||||||||||
Financial
income
|
106,399 | — | — | 106,399 | ||||||||||||
Income
before taxes on income and
noncontrolling interests
|
276,593 | — | (157,800 | ) | 118,793 | |||||||||||
Current
income taxes
|
(15,659 | ) | — | — | (15,659 | ) | ||||||||||
Deferred
tax
|
(49,245 | ) | — | 53,652 | (6) | 4,407 | ||||||||||
Total
tax expenses
|
(64,904 | ) | — | 53,652 | (11,252 | ) | ||||||||||
Income
before noncontrolling interests
|
211,689 | — | (104,148 | ) | 107,541 | |||||||||||
Noncontrolling
interests
|
(53,471 | ) | 22,284 | (3) | — | (31,187 | ) | |||||||||
Net
income under Brazilian GAAP
|
158,218 | 22,284 | (104,148 | ) | 76,354 | |||||||||||
Total
U.S. GAAP adjustments
|
(212,165 | )(7) | (26,004 | )(10) | 104,148 | (134,021 | ) | |||||||||
Net
income (loss) attributable to Gafisa under U.S. GAAP
|
(53,947 | ) | (3,720 | ) | — | (57,667 | ) | |||||||||
Brazilian
GAAP pro forma shares outstanding as of September 30, 2009 (in
thousands)
|
163,393 | (11) | ||||||||||||||
Brazilian
GAAP pro forma earnings per share as of September 30, 2009
|
0.4673 | |||||||||||||||
Brazilian
GAAP dividends declared per share as of September 30, 2009
|
— | |||||||||||||||
U.S.
GAAP weighted average number of shares outstanding (in
thousands)
|
163,080 | (12) | ||||||||||||||
U.S.
GAAP pro forma earnings (loss) per share
|
||||||||||||||||
Basic
|
(0.3536 | ) | ||||||||||||||
Diluted
|
(0.3536 | )(13) | ||||||||||||||
U.S.
GAAP dividends declared per thousand shares (weighted
–average)
|
— |
(1)
|
Represents
the historical consolidated financial information of Gafisa for the year
ended December 31, 2008, which includes the results of Tenda for the
period from October 22 through December 31, 2008, and for the nine months
ended September 30, 2009.
|
(2)
|
Represents
the historical consolidated financial information of Tenda for the year
ended December 31, 2008.
|
(3)
|
Represents
the historical consolidated financial information of Tenda for the period
from October 22, 2008 through December 31, 2008, which was consolidated by
Gafisa.
|
(4)
|
Reflects
the removal of the historical 40% noncontrolling interests
expense of Tenda’s minority shareholders as a result of the
Restructuring.
|
(5)
|
Reflects
the reversal of non-recurring amortization of gain on partial sale of
FIT.
|
(6)
|
Reflects
the income tax effect on the pro forma adjustments using a Brazilian
statutory income tax rate of 34.0%. This rate is not necessarily
indicative of our future effective tax
rate.
|
(7)
|
Reflects
the reconciling items between Brazilian GAAP to U.S. GAAP and the related
references as they refer to Gafisa which are described in Gafisa’s: (a)
audited consolidated financial statements for the year ended December 31,
2008, incorporated by reference in this prospectus/information statement;
or (b) unaudited interim consolidated financial statements as of September
30, 2009 and for the nine months ended September 30, 2009 and 2008,
included elsewhere in this prospectus/information
statement.
|
(8)
|
Reflects
the adjustments to U.S. GAAP as they relate to Tenda: (a) the estimated
adjustments to U.S. GAAP for the year ended December 31, 2008; and (b) the
elimination of adjustments to U.S. GAAP, which were consolidated by Gafisa
for the period from October 22, 2008 through December 31, 2008, as
follows:
|
Year
ended December 31, 2008
|
Period
from October 22, 2008 through December 31, 2008
|
|||||||
(in
thousands of reais)
|
||||||||
Net
income (loss) of Tenda under Brazilian GAAP
|
(38,208 | ) | 26,142 | |||||
Revenue
recognition - net operating revenue
|
(151,442 | ) | 42,869 | |||||
Revenue
recognition - operating costs
|
101,317 | (22,778 | ) | |||||
Stock
compensation (expense) reversal
|
2,145 | 2,145 | ||||||
Business
combination
|
(780 | ) | (780 | ) | ||||
Other
|
6,826 | 616 | ||||||
Deferred
income tax reversal
|
— | (22,536 | ) | |||||
Deferred
income tax on the adjustments above
|
16,390 | (6,576 | ) | |||||
Net
income (loss) of Tenda under U.S. GAAP
|
(63,752 | ) | 19,102 | |||||
(9)
|
Reflects
the adjustments to net income attributable to noncontrolling interests of
Tenda under U.S. GAAP.
|
(10)
|
Reflects:
(a) the reversal of amortization of gain on partial sale of FIT, net of
tax effects, under U.S. GAAP; (b) the reversal of a non-recurring
gain of R$205,527 thousand recorded under U.S. GAAP from the transfer
of FIT as a partial sale to the noncontrolling shareholders of Tenda;
and (c) the amortization of intangible assets allocated from
the business combination as if the purchase price allocation had occurred
on January 1, 2008 under U.S. GAAP of R$1,588, net of tax
effects.
|
(11)
|
Represents
the pro forma shares outstanding, calculated as of December 31, 2008 and
September 30, 2009, considering the issuance of an additional 32,884,592
of Gafisa’s common shares to the noncontrolling shareholders of
Tenda at the exchange ratio of 0.205 common share of Gafisa to one common
share of Tenda. The Exchange Ratio of 0.205 for the conversion of Tenda’s
common shares into Gafisa’s common share will be subject to approval of
the EGM of Gafisa and Tenda.
|
(12)
|
Represents
the pro forma weighted average number of shares for the year ended
December 31, 2008 and the nine months ended September 30, 2009,
considering the issuance at the beginning of each period of an additional
32,884,592 Gafisa’s common shares to the minority shareholders
of Tenda at the exchange ratio of 0.205 common share of Gafisa to one
common share of Tenda.
|
(13)
|
Potentially
dilutive securities were not considered in pro forma loss per
share.
|
As
of and for the nine-month period ended September 30,
2009
|
||||||||||||||||
(Historical)
|
(Pro
Forma)
|
|||||||||||||||
Gafisa
|
Tenda
|
New
Gafisa
|
Per
share equivalent Tenda
|
|||||||||||||
(Reais)
|
||||||||||||||||
Brazilian
GAAP
|
||||||||||||||||
Book
value per common share
|
13.66 | 2.80 | 13.66 | 2.80 | ||||||||||||
Cash
dividends declared per common share
|
— | — | — | — | ||||||||||||
Net
income from continuing operations per share
|
1.21 | 0.14 | 0.47 | 0.09 |
As
of and for the year ended December 31, 2008
|
||||||||||||||||
(Historical)
|
(Pro
Forma)
|
|||||||||||||||
Gafisa
|
Tenda
|
New
Gafisa
|
Per
share equivalent Tenda
|
|||||||||||||
(Reais)
|
||||||||||||||||
Brazilian
GAAP
|
||||||||||||||||
Book
value per common share
|
12.40 | 2.65 | 16.79 | 3.44 | ||||||||||||
Cash
dividends declared per common share
|
0.20 | — | 0.16 | 0.03 | ||||||||||||
Net
income from continuing operations per common share
|
0.84 | (0.10 | ) | 0.18 | 0.04 |
|
·
|
the
commercial rate exchange market;
and
|
|
·
|
the
floating rate exchange market.
|
Exchange
Rate of R$ per US$
|
||||||||||||||||
Low
|
High
|
Average(1)
|
Period-End
|
|||||||||||||
Year
ended December 31,
|
||||||||||||||||
2004
|
2.654 | 3.205 | 2.930 | 2.654 | ||||||||||||
2005
|
2.163 | 2.762 | 2.463 | 2.341 | ||||||||||||
2006
|
2.059 | 2.371 | 2.215 | 2.138 | ||||||||||||
2007
|
1.762 | 1.823 | 1.793 | 1.771 | ||||||||||||
2008
|
1.559 | 2.050 | 2.030 | 2.337 | ||||||||||||
Month
Ended
|
||||||||||||||||
May
31, 2009
|
1.973 | 2.198 |
2.060
|
1.973 | ||||||||||||
June
30, 2009
|
1.921 | 2.007 | 1.958 | 1.952 | ||||||||||||
July
31, 2009
|
1.873 | 2.015 | 1.933 | 1.873 | ||||||||||||
August
31, 2009
|
1.818 | 1.886 | 1.845 | 1.886 | ||||||||||||
September
30, 2009
|
1.790 | 1.914 | 1.833 | 1.790 | ||||||||||||
October
31, 2009
|
1.718 | 1.757 | 1.737 | 1.744 | ||||||||||||
November
(through November 10, 2009)
|
1.702 | 1.758 | 1.723 | 1.709 |
(1)
|
Represents
the average of the exchange rates (PTAX) on the last day of each month
during the relevant period.
|
Actual
|
Actual
|
Ratio
of exchange
|
||||||||||
Gafisa
|
Tenda
|
Gafisa
per Tenda
|
||||||||||
Common
shares
|
R$ | 30.45 | R$ | 6.00 | 0.197 |
|
·
|
management
strategy;
|
|
·
|
synergies
and cost savings;
|
|
·
|
integration
of new business units;
|
|
·
|
market
position and the size of the Brazilian real estate
market;
|
|
·
|
statements
concerning the operations and prospects of Gafisa, Tenda and the other
Gafisa companies;
|
|
·
|
estimated
demand forecasts;
|
|
·
|
Gafisa’s
and Tenda’s strategic initiatives and plans for business
growth;
|
|
·
|
industry
conditions;
|
|
·
|
Gafisa’s
and Tenda’s funding needs and financing
sources;
|
|
·
|
influence
of main shareholders;
|
|
·
|
litigation;
and
|
|
·
|
the
timetable for the Restructuring.
|
|
·
|
“Part
One: Questions and Answers About the
Restructuring;”
|
|
·
|
“Part
Two: Summary;”
|
|
·
|
“Part
Three: Risk Factors;”
|
|
·
|
“Part
Five: The Restructuring;”
|
|
·
|
“Part
Six: Shareholder Rights;”
|
|
·
|
“Part
Seven: Additional Information for Shareholders—Enforceability of Civil
Liabilities Under U.S. Securities Laws;”
and
|
|
·
|
“Part
Eight: Legal and Regulatory
Matters—General.”
|
|
·
|
require
us to use a substantial portion of their cash flow from operations to pay
their obligations, thereby reducing the availability of our cash flow to
fund working capital, operations, capital expenditures, dividend payments,
strategic acquisitions, expansion of our operations and other business
activities;
|
|
·
|
increase
our vulnerability to general adverse economic and industry
conditions;
|
|
·
|
limit,
along with financial and other restrictive covenants in their debt
instruments, our ability to borrow additional funds or dispose of assets;
and
|
Consolidated
Statement of Income
|
Nine-Month
Period Ended September 30,
|
|||||||||||||||||||
2009
|
Total
%
|
2008
|
Total
%
|
%
Variation
|
||||||||||||||||
(In
thousands of Reais)
|
||||||||||||||||||||
Gross
operating revenue
|
||||||||||||||||||||
Revenue
from real estate developments and sales
|
2,184,117 | 102.8 | 1,224,199 | 102.7 | 78.4 | |||||||||||||||
Other
|
30,352 | 1.4 | 13,201 | 1.1 | 129.9 | |||||||||||||||
Taxes
and rates
|
(89,663 | ) | 4.2 | (44,841 | ) | 3.8 | 100.0 | |||||||||||||
Net
operating revenue
|
2,124,806 | 100.0 | 1,192,559 | 100.0 | 78.2 | |||||||||||||||
Operating
costs
|
||||||||||||||||||||
Expenses
from real estate developments and sales
|
(1,523,640 | ) | 71.7 | (814,201 | ) | 68.3 | 87.1 | |||||||||||||
Gross
profit
|
601,166 | 28.3 | 378,358 | 31.7 | 58.9 | |||||||||||||||
Operating
income (expense)
|
||||||||||||||||||||
Selling
expenses
|
(153,344 | ) | 7.2 | (87,504 | ) | 7.3 | 75.2 | |||||||||||||
General
and administrative expenses
|
(172,832 | ) | 8.1 | (104,990 | ) | 8.8 | 64.6 | |||||||||||||
Net
financial result
|
(52,937 | ) | 2.5 | 40,117 | 3.4 | 232.0 | ||||||||||||||
Depreciation
and amortization
|
(24,166 | ) | 1.1 | (29,606 | ) | 2.5 | 18.4 | |||||||||||||
Amortization
of gain on partial sale of Fit Residencial and other,
net
|
157,800 | 7.4 | — | — | 100.0 | |||||||||||||||
Other
operating expenses, net
|
(79,094 | ) | 3.7 | (13,303 | ) | 1.1 | 494.6 | |||||||||||||
Total
operating revenue (expense)
|
(324,573 | ) | 15.3 | (195,286 | ) | 16.4 | 66.2 | |||||||||||||
Operating
results before income tax and social contribution
|
276,593 | 13.0 | 183,072 | 15.4 | 51.1 | |||||||||||||||
Income
tax and social contribution
|
(64,904 | ) | 3.1 | (50,456 | ) | 4.2 | 28.6 | |||||||||||||
Income
before noncontrolling interests
|
211,689 | 10.0 | 132,616 | 11.1 | 59.6 | |||||||||||||||
Noncontrolling interests
|
(53,471 | ) | 2.5 | (35,540 | ) | 3.0 | 50.5 | |||||||||||||
Net
income for the period
|
158,218 | 7.4 | 97,076 | 8.1 | 63.0 |
As
of September 30,
|
Nine-month
period ended September 30,
|
||||||||||||||||||||||||||||||||
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
||||||||||||||||||||||||||||
Development
|
Month/
Year launched
|
Total
area
(m2) (1) (2)
|
Final
completion (%)
|
Percentage
sold-accumulated (%)
|
Gafisa
Participation (%)
|
Revenue
recognized
|
|||||||||||||||||||||||||||
GAFISA
BRAND
|
|||||||||||||||||||||||||||||||||
Other
|
257,656 | 314,579 | |||||||||||||||||||||||||||||||
Península
Fit
|
Sep-06
|
24,080 | 100 | 91 | 92 | 77 | 100 | 16,263 | 33,498 | ||||||||||||||||||||||||
Rua
das Laranjeiras 29
|
Apr-08
|
11,740 | 63 | 47 | 100 | 98 | 100 | 11,430 | 31,166 | ||||||||||||||||||||||||
London
Green
|
Mar-08
|
44,007 | 81 | 44 | 742 | 67 | 100 | 46,736 | 30,222 | ||||||||||||||||||||||||
Vp
Horto – Phase 2 (OAS)
|
Jan-08
|
44,596 | 50 | 33 | 96 | 97 | 50 | 16,312 | 29,103 | ||||||||||||||||||||||||
Olimpic
Chac. Santo Antonio
|
Aug-06
|
24,988 | 99 | 71 | 100 | 99 | 100 | 3,506 | 25,202 | ||||||||||||||||||||||||
Vision
|
Dec-07
|
19,712 | 66 | 41 | 90 | 75 | 100 | 25,698 | 21,363 | ||||||||||||||||||||||||
Isla
Residence Clube
|
May-07
|
31,423 | 93 | 44 | 93 | 85 | 100 | 32,828 | 19,948 | ||||||||||||||||||||||||
Supremo
|
Sep-06
|
34,864 | 54 | 42 | 96 | 84 | 100 | 21,811 | 19,731 |
As
of September 30,
|
Nine-month
period ended September 30,
|
||||||||||||||||||||||||||||||||
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
||||||||||||||||||||||||||||
Development
|
Month/
Year launched
|
Total
area
(m2) (1) (2)
|
Final
completion (%)
|
Percentage
sold-accumulated (%)
|
Gafisa
Participation (%)
|
Revenue
recognized
|
|||||||||||||||||||||||||||
GAFISA
BRAND
|
|||||||||||||||||||||||||||||||||
Csf
Acacia
|
May-07
|
23,461 | 93 | 44 | 100 | 95 | 100 | 20,531 | 19,015 | ||||||||||||||||||||||||
Parc
Paradiso
|
Jun-07
|
38,430 | 60 | 21 | 99 | 93 | 95 | 51,165 | 18,353 | ||||||||||||||||||||||||
Enseada
Das Orquídeas
|
Aug-07
|
52,589 | 57 | 29 | 95 | 66 | 100 | 46,794 | 17,691 | ||||||||||||||||||||||||
Beach
Park Living
|
Jun-06
|
14,913 | 100 | 89 | 92 | 88 | 80 | 1,169 | 15,968 | ||||||||||||||||||||||||
Vp
Parides
|
Nov-06
|
13,093 | 100 | 89 | 100 | 100 | 100 | 114 | 14,754 | ||||||||||||||||||||||||
Blue
Land SPE 36
|
Oct-05
|
18,252 | 100 | 98 | 96 | 65 | 100 | 16,920 | 14,725 | ||||||||||||||||||||||||
Terraças
Alto da Lapa
|
Nov-07
|
24,525 | 72 | 24 | 88 | 72 | 100 | 29,267 | 14,618 | ||||||||||||||||||||||||
Csf
Paradiso
|
Nov-06
|
16,286 | 100 | 58 | 99 | 89 | 100 | 12,178 | 14,493 | ||||||||||||||||||||||||
Espacio
Laguna – Phase 1
|
Jun-06
|
16,364 | 98 | 68 | 89 | 76 | 100 | 12,477 | 14,205 | ||||||||||||||||||||||||
Csf
Santtorino
|
Aug-06
|
14,979 | 98 | 67 | 100 | 100 | 100 | 2,091 | 13,760 | ||||||||||||||||||||||||
Ville
du Soleil
|
Oct-07
|
8,920 | 100 | 99 | 98 | 67 | 100 | 4,927 | 12,777 | ||||||||||||||||||||||||
Collori
|
Oct-06
|
39,462 | 92 | 43 | 100 | 93 | 50 | 22,998 | 11,478 | ||||||||||||||||||||||||
Magic
|
May-07
|
31,487 | 74 | 33 | 74 | 42 | 100 | 34,817 | 11,420 | ||||||||||||||||||||||||
Olimpic
Bosque da Saúde
|
Nov-06
|
19,150 | 67 | 44 | 89 | 80 | 100 | 11,997 | 11,080 | ||||||||||||||||||||||||
Felicita
|
Nov-06
|
11,323 | 97 | 61 | 100 | 91 | 100 | 7,360 | 11,012 | ||||||||||||||||||||||||
Olimpic
Condominium Resort
|
Oct-05
|
21,851 | 100 | 100 | 100 | 100 | 100 | 1,057 | 10,264 | ||||||||||||||||||||||||
The
Gold
|
Dec-05
|
10,465 | 100 | 100 | 100 | 100 | 100 | 466 | 10,138 | ||||||||||||||||||||||||
Del
Lago Urbanização
|
May-05
|
62,022 | 99 | 99 | 99 | 99 | 100 | 293 | 9,232 | ||||||||||||||||||||||||
Csf
Prímula
|
May-07
|
13,897 | 88 | 42 | 100 | 82 | 100 | 13,005 | 8,979 | ||||||||||||||||||||||||
Town
Home
|
Nov-05
|
8,319 | 100 | 97 | 100 | 98 | 100 | 151 | 8,941 | ||||||||||||||||||||||||
Sunplaza
Personal Office
|
Mar-06
|
6,328 | 100 | 100 | 100 | 100 | 100 | 1,156 | 8,438 | ||||||||||||||||||||||||
Acqua
Residencial
|
Mar-07
|
35,536 | 75 | 34 | 54 | 39 | 100 | 21,042 | 8,164 | ||||||||||||||||||||||||
Solares
da Vila Maria
|
Nov-07
|
13,376 | 52 | 19 | 100 | 100 | 100 | 9,825 | 7,827 | ||||||||||||||||||||||||
Grand
Valley
|
Mar-07
|
16,908 | 84 | 42 | 69 | 62 | 100 | 12,172 | 7,513 | ||||||||||||||||||||||||
Vivance
Res. Service
|
Jan-07
|
14,717 | 93 | 37 | 95 | 76 | 100 | 16,826 | 7,467 | ||||||||||||||||||||||||
VP
Horto – Phase 1 (OAS)
|
Oct-07
|
44,563 | 66 | 38 | 98 | 100 | 50 | 31,513 | 7,384 | ||||||||||||||||||||||||
Quinta
Imperial
|
Jul-06
|
8,422 | 98 | 72 | 89 | 75 | 100 | 3,405 | 7,245 | ||||||||||||||||||||||||
Star
res. Service/Blue Concept
|
Dec-05
|
9,367 | 100 | 96 | 98 | 49 | 100 | 263 | 7,066 | ||||||||||||||||||||||||
Nova
Petropolis SBC – Phase 1
|
Mar-08
|
41,182 | 49 | 15 | 49 | 37 | 100 | 17,122 | 6,944 | ||||||||||||||||||||||||
Mirante
do Rio
|
Oct-06
|
8,125 | 100 | 65 | 99 | 100 | 60 | 4,812 | 6,876 | ||||||||||||||||||||||||
Secret
Garden
|
May-07
|
15,344 | 75 | 36 | 70 | 66 | 100 | 9,823 | 6,194 | ||||||||||||||||||||||||
Fit
Residence Service Niterói
|
Aug-06
|
8,523 | 98 | 62 | 88 | 86 | 100 | 7,151 | 6,022 | ||||||||||||||||||||||||
Beach
Park Acqua
|
Nov-05
|
9,770 | 100 | 100 | 98 | 95 | 90 | 1,284 | 5,820 | ||||||||||||||||||||||||
Icaraí
Corporate
|
Dec-06
|
5,683 | 82 | 50 | 97 | 94 | 100 | 4,460 | 5,660 | ||||||||||||||||||||||||
Csf
Dalia
|
May-07
|
9,000 | 82 | 37 | 98 | 81 | 100 | 5,013 | 5,082 | ||||||||||||||||||||||||
Hype
Residence Service
|
Nov-04
|
10,753 | 100 | 100 | 93 | 55 | 100 | 12,034 | 4,994 | ||||||||||||||||||||||||
Campo
D’ourique
|
Dec-05
|
11,775 | 100 | 100 | 94 | 52 | 50 | 5,225 | 4,851 | ||||||||||||||||||||||||
Csf
Saint Etiene
|
May-05
|
11,261 | 100 | 100 | 99 | 96 | 100 | 1,987 | 4,839 | ||||||||||||||||||||||||
Palm
D’or
|
Nov-05
|
8,493 | 100 | 99 | 100 | 100 | 100 | 425 | 4,784 | ||||||||||||||||||||||||
Grand
Valley Niterói – Phase 1
|
Oct-07
|
17,905 | 35 | 20 | 92 | 91 | 100 | 4,494 | 4,682 | ||||||||||||||||||||||||
Privilege
Residencial
|
Sep-07
|
16,173 | 59 | 20 | 85 | 81 | 80 | 13,372 | 4,572 | ||||||||||||||||||||||||
Magnific
|
Mar-08
|
10,969 | 50 | 7 | 63 | 63 | 100 | 5,702 | 4,141 | ||||||||||||||||||||||||
Celebrare
Residencial
|
Mar-07
|
14,679 | 65 | 28 | 78 | 77 | 100 | 8,862 | 3,861 | ||||||||||||||||||||||||
Reserva
do Lago – Phase I
|
Feb-07
|
16,800 | 92 | 47 | 92 | 75 | 100 | 11,587 | 3,852 | ||||||||||||||||||||||||
Costa
Paradiso
|
Jun-05
|
63,041 | 100 | 100 | 93 | 79 | 100 | 521 | 3,577 | ||||||||||||||||||||||||
Vp
Domaine du Soleil
|
Sep-05
|
8,225 | 100 | 100 | 100 | 100 | 100 | 128 | 3,577 | ||||||||||||||||||||||||
Orbit
|
Aug-07
|
11,332 | 59 | 17 | 47 | 30 | 100 | 4,749 | 2,686 | ||||||||||||||||||||||||
Acquarelle
|
Mar-07
|
17,742 | 54 | 9 | 82 | 60 | 85 | 13,227 | 2,585 | ||||||||||||||||||||||||
Horizonte
|
Apr-07
|
9,382 | 63 | 23 | 100 | 90 | 80 | 4,820 | 2,482 | ||||||||||||||||||||||||
Belle
Vue – Porto Alegre
|
May-06
|
4,264 | 100 | 88 | 77 | 45 | 80 | 2,682 | 2,452 | ||||||||||||||||||||||||
Weber
Art
|
Jun-05
|
5,812 | 100 | 100 | 98 | 98 | 100 | 175 | 2,247 | ||||||||||||||||||||||||
Montenegro
Boulevard
|
Jun-05
|
174,862 | 100 | 100 | 100 | 100 | 100 | 14 | 1,886 | ||||||||||||||||||||||||
La
Place Residence Service
|
May-04
|
8,416 | 100 | 100 | 100 | 96 | 100 | 681 | 1,585 | ||||||||||||||||||||||||
Blue
One Spe 125
|
Sep-03
|
15,973 | 100 | 100 | 99 | 83 | 67 | 6,608 | 1,513 | ||||||||||||||||||||||||
Riv.
Ponta Negra – ed Cannes
|
Jan-04
|
9,703 | 100 | 100 | 73 | 79 | 50 | 104 | 1,495 | ||||||||||||||||||||||||
Evidence
|
Mar-07
|
23,487 | 58 | 21 | 74 | 58 | 50 | 7,196 | 1,344 | ||||||||||||||||||||||||
Palm
Ville
|
Apr-07
|
13,582 | 73 | 12 | 95 | 90 | 50 | 6,958 | 1,168 | ||||||||||||||||||||||||
Vistta
Santana
|
Jun-09
|
27,897 | 44 | — | 69 | — | 100 | 35,502 | — | ||||||||||||||||||||||||
Pq
barueri Cond – Phase 1
|
Nov-08
|
58,437 | 39 | — | 63 | — | 100 | 27,313 | — |
As
of September 30,
|
Nine-month
period ended September 30,
|
||||||||||||||||||||||||||||||||
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
||||||||||||||||||||||||||||
Development
|
Month/
Year launched
|
Total
area
(m2) (1) (2)
|
Final
completion (%)
|
Percentage
sold-accumulated (%)
|
Gafisa
Participation (%)
|
Revenue
recognized
|
|||||||||||||||||||||||||||
GAFISA
BRAND
|
|||||||||||||||||||||||||||||||||
Chácara
Santana
|
Nov-08
|
30,517 | 37 | — | 94 | 50 | 19,726 | — | |||||||||||||||||||||||||
Quintas
do Pontal
|
Sep-08
|
21,915 | 62 | — | 31 | 15 | 100 | 14,434 | — | ||||||||||||||||||||||||
Mansão
Imperial – F1
|
Oct-08
|
18,778 | 32 | — | 67 | — | 100 | 14,149 | — | ||||||||||||||||||||||||
Brink
|
Nov-08
|
17,280 | 41 | — | 85 | — | 100 | 13,631 | — | ||||||||||||||||||||||||
Magno
|
Sep-09
|
8,686 | 36 | — | 72 | — | 100 | 13,145 | — | ||||||||||||||||||||||||
Sorocaba
|
Jun-09
|
7,046 | 45 | — | 69 | — | 100 | 11,847 | — | ||||||||||||||||||||||||
Terraças
Tatuape
|
Jun-08
|
14,386 | 37 | — | 67 | 10 | 100 | 11,703 | — | ||||||||||||||||||||||||
Details
|
Oct-08
|
7,802 | 47 | — | 57 | — | 100 | 11,472 | — | ||||||||||||||||||||||||
Vila
Nova São José – F1a
|
Oct-08
|
20,741 | 4 | — | 64 | — | 100 | 10,537 | — | ||||||||||||||||||||||||
Verdemar
– Phase 2
|
Jan-09
|
12,593 | 43 | — | 38 | — | 100 | 8,664 | — | ||||||||||||||||||||||||
Brink
f2 – Campo Limpo
|
Mar-09
|
8,576 | 41 | — | 66 | — | 100 | 7,016 | — | ||||||||||||||||||||||||
Ecolive
|
Aug-08
|
12,255 | 23 | — | 75 | 43 | 100 | 6,839 | — | ||||||||||||||||||||||||
Mont
Blanc
|
Jul-08
|
30,479 | 42 | — | 33 | 21 | 100 | 5,254 | — | ||||||||||||||||||||||||
Supremo
Ipiranga
|
Jun-09
|
13,904 | 20 | — | 51 | 100 | 5,065 | — | |||||||||||||||||||||||||
Alegria
Phase 1
|
Sep-08
|
29,199 | 20 | — | 61 | 41 | 100 | 4,442 | — | ||||||||||||||||||||||||
Manhattan
Home Soho
|
Jun-08
|
28,926 | 18 | — | 45 | 19 | 50 | 4,142 | — | ||||||||||||||||||||||||
Manhattan
Home Tribeca
|
Jun-08
|
37,879 | 18 | — | 33 | 38 | 50 | 3,839 | — | ||||||||||||||||||||||||
Total
|
1,218,156 | 951,808 | |||||||||||||||||||||||||||||||
ALPHAVILLE
BRAND
|
|||||||||||||||||||||||||||||||||
Others
|
18,063 | 42,839 | |||||||||||||||||||||||||||||||
Jacuhy
1 & 2
|
Dec-07
|
651,209 | 73 | 29 | 97 | 96 | 65 | 42,839 | 30,744 | ||||||||||||||||||||||||
Recife
|
Aug-06
|
270,833 | 100 | 93 | 99 | 93 | 65 | 5,371 | 19,118 | ||||||||||||||||||||||||
Salvador
2
|
Feb-06
|
351,154 | 100 | 97 | 97 | 97 | 55 | 510 | 19,057 | ||||||||||||||||||||||||
Rio
das Ostras 1 & 2
|
Sep-07
|
515,928 | 79 | 35 | 100 | 96 | 58 | 35,368 | 16,613 | ||||||||||||||||||||||||
Campo
Grande
|
Mar-07
|
225,269 | 99 | 90 | 93 | 75 | 67 | 4,884 | 15,732 | ||||||||||||||||||||||||
Santana
Residencial
|
Mar-05
|
259,544 | 100 | 97 | 48 | 33 | 50 | 7,955 | 9,398 | ||||||||||||||||||||||||
Londrina
2
|
Dec-07
|
214,592 | 72 | 34 | 99 | 49 | 63 | 12,516 | 5,655 | ||||||||||||||||||||||||
Cuiabá
II
|
May-08
|
150,896 | 78 | 24 | 79 | 33 | 60 | 10,107 | 4,423 | ||||||||||||||||||||||||
Manaus
|
Jun-08
|
166,938 | 25 | 6 | 82 | 78 | 63 | 6,080 | 4,111 | ||||||||||||||||||||||||
João
Pessoa
|
Mar-08
|
97,759 | 72 | 12 | 100 | 100 | 100 | 10,189 | 1,556 | ||||||||||||||||||||||||
Barra
da Tijuca
|
Dec-08
|
268,259 | 74 | — | 73 | — | 35 | 12,899 | — | ||||||||||||||||||||||||
Caruaru
|
Mar-09
|
113,219 | 16 | — | 98 | — | 70 | 4,340 | — | ||||||||||||||||||||||||
Litoral
Norte II
|
Sep-08
|
159,259 | 20 | — | 57 | — | 66 | 3,347 | — | ||||||||||||||||||||||||
Total
|
180,552 | 169,247 | |||||||||||||||||||||||||||||||
TENDA
BRAND
|
|||||||||||||||||||||||||||||||||
Tenda
|
726,098 | 71,503 | |||||||||||||||||||||||||||||||
Total
|
726,098 | 71,503 | |||||||||||||||||||||||||||||||
Total:
|
2,124,806 | 1,192,559 |
As
of September 30,
(in
thousands of reais)
|
||||||||
2009
|
2008
|
|||||||
Real
estate development receivables:
|
||||||||
Current
|
1,718,110 | 828,369 | ||||||
Non-current
|
1,662,300 | 733,764 | ||||||
Total
|
3,380,410 | 1,562,133 | ||||||
Receivables
to be recognized on our balance sheet according to percentage of
completion method:
|
||||||||
Current
|
1,574,407 | 632,058 | ||||||
Non-current
|
1,407,036 | 1,311,768 | ||||||
Total
|
2,981,443 | 1,943,826 | ||||||
Total
clients’ portfolio
|
6,361,853 | 3,505,959 |
Maturity
Schedule
|
||||||||||||||||||||
Total
|
Less
than 1 year
|
1-3
years
|
3-5
years
|
More
than 5 years
|
||||||||||||||||
(in
thousands of reais)
|
||||||||||||||||||||
Loans
and financing
|
733,331 | 382,900 | 348,106 | 2,325 | — | |||||||||||||||
Debentures
|
1,324,781 | 80,781 | 944,000 | 300,000 | — | |||||||||||||||
Housing
Finance System
|
473,615 | 187,407 | 286,208 | — | — | |||||||||||||||
Others
|
— | — | — | — | — | |||||||||||||||
Total
|
2,531,727 | 651,088 | 1,578,314 | 302,325 | — |
|
·
|
SFH
debt is the sum of all our loan agreements that arise from resources of
the SFH;
|
|
·
|
total
receivables is the sum of our short and long-term “development and sale of
properties” accounts, as provided in our financial
statements;
|
|
·
|
post-completion
inventory is the total value of units already completed for sale, as
provided on our balance sheet; and
|
|
·
|
total
debt is the sum of our outstanding debt, including loans and financing
with third parties and fixed income securities, convertible or not, issued
in local or international capital
markets.
|
|
·
|
limitations
on our ability to incur debt;
|
|
·
|
limitations
on the existence of liens on our
properties;
|
|
·
|
limitations
on transactions with related parties, which generally must be on terms no
less favorable than those that could be obtained in a comparable
arm’s-length transaction; and
|
|
·
|
maintenance
of certain financial ratios calculated based on Brazilian
GAAP.
|
Actual
|
||||||||
September
30, 2009
|
December
31, 2008
|
|||||||
Second
program - first issuance
|
||||||||
Total
debt minus project debt minus cash does not exceed 75% of shareholders’
equity plus noncontrolling shareholders
|
15 | % | N/A | |||||
Total
receivables plus post-completion inventory is equal to or greater than 2.0
times total debt
|
2.6 | 3.3 | ||||||
Third
program - first issuance
|
||||||||
Total
debt minus SFH debt minus cash does not exceed 75% of shareholders’
equity
|
54 | % | 35 | % | ||||
Total
receivables plus post-completion inventory is equal to or greater than 2.2
times net debt
|
4.5 | 5.5 |
Maturity
Schedule
|
||||||||||||||||||||
Total
|
Less
than
1
year
|
1-3
years
|
3-5
years
|
More
than
5
years
|
||||||||||||||||
(in
thousands of R$)
|
||||||||||||||||||||
Loans
and financing
|
1,206,946 | 570,307 | 634,314 | 2,325 | — | |||||||||||||||
Debentures
|
1,324,781 | 80,781 | 944,000 | 300,000 | — | |||||||||||||||
Interest(1)
|
619,408 | 200,210 | 349,806 | 69,392 | — | |||||||||||||||
Real
estate development obligations(2)
|
2,808,848 | 2,227,028 | 581,820 | — | — | |||||||||||||||
Obligations
for land purchase
|
427,039 | 183,522 | 188,503 | 55,013 | — | |||||||||||||||
Obligation
to venture partners(3)
|
300,000 | — | 100,000 | 200,000 | — | |||||||||||||||
Credit
assignments
|
128,712 | 60,819 | 67,645 | 248 | — | |||||||||||||||
Obligations
from operating leases
|
27,236 | 4,870 | 12,102 | 10,264 | — | |||||||||||||||
Acquisition
of investments
|
26,976 | 26,976 | — | — | — | |||||||||||||||
Other
accounts payables
|
55,419 | 12,309 | 43,110 | — | — | |||||||||||||||
Total
|
6,625,665 | 3,366,822 | 2,921,300 | 637,242 | — |
(1)
|
Estimated interest payments are
determined using the interest rate at December 31, 2008. However, our
long-term debt is subject to variable interest rates and inflation
indices, and these estimated payments may differ significantly from
payments actually made.
|
(2)
|
Including obligations not
reflected in the balance—CFC Resolution No. 963. Pursuant to Brazilian
GAAP, and since the adoption of CFC Resolution No. 963, the total costs to
be incurred on the units launched but not sold are not recorded on our
balance sheet. As of December 31, 2008, the amount of “real estate development
obligations” related to units launched but not
sold was R$1,167.5 million.
|
(3)
|
Obligation to venture partners
accrues a minimum annual dividend equivalent to the variation in CDI,
which is not included in the table above. The contribution of R$300.0
million received in 2008 will be redeemed by us in
2014.
|
|
·
|
revenue
recognition;
|
|
·
|
stock
option plans;
|
|
·
|
business
combinations;
|
|
·
|
effects
of deferred taxes on the differences above;
and
|
|
·
|
noncontrolling interests.
|
(1)
|
For
completed units: results are recognized when the sale is made, regardless
of the receipt of the contractual
amount;
|
(2)
|
For
uncompleted units, the results are recognized according to the criteria
established by the CFC (Federal Accounting Council) Resolution No. 963/03
as follows:
|
|
·
|
Sales
revenue and land and construction costs inherent to the respective
developments are recognized in income based on the
percentage-of-completion method of each venture, this percentage being
measured based on the incurred cost corresponding to the total estimated
cost of respective ventures, including costs of
land;
|
|
·
|
The
sales revenue recognized according to item (1), including interest and
inflation-indexation charges, net of installments received, are recorded
in receivables from clients. Any amount received that exceeds the amount
of revenues recognized is recorded as advances from
clients.
|
|
·
|
Fixed
interest rates are recognized in income on an accrual basis, regardless of
their receipt; and
|
|
·
|
financial
charges on accounts payable from the acquisition of land and real estate
credit operations incurred during the construction period are included in
the costs incurred, and recognized in Tenda’s results upon the sale of the
units of the venture to which they are directly
related.
|
As
of September 30,
|
As
of and for the year ended December 31,
|
|||||||||||||||||||
2009
|
2008
|
2008
|
2007
|
2006
|
||||||||||||||||
New
developments
|
||||||||||||||||||||
Number
of projects launched
|
18 | 92 | 101 | 119 | 16 | |||||||||||||||
Number
of units launched (1) (2)
|
3,951 | 20,274 | 22,274 | 25,892 | 1,863 | |||||||||||||||
Potential
sales volume (thousand)
|
480,453 | 1,728,101 | 1,944,472 | 1,997,673 | 122,763 | |||||||||||||||
Percentage
of Tenda investment
|
89 | % | 95 | % | 92 | % | 100 | % | 100 | % |
(1)
|
The
units delivered in exchange for land pursuant to swap agreements are not
included.
|
(2)
|
It
does not include launched usable area for FIT’s developments for the years
ended December 31, 2007 and 2006.
|
Nine
Months period
September
30,
|
For
the year ended December 31,
|
|||||||||||||||||||
Type
of development
|
2009
|
2008
|
2008
|
2007
|
2006
|
|||||||||||||||
(in
thousands of reais, unless otherwise
stated)
|
||||||||||||||||||||
Garden
|
86,738 | 54,672 | 40,763 | 52,790 | 20,332 | |||||||||||||||
Due
|
10,678 | 11,907 | 21,170 | 58,172 | 15,181 | |||||||||||||||
Life
|
540,760 | 342,298 | 375,252 | 462,088 | 116,044 |
Nine
Months period
September
30,
|
For
the year ended December 31,
|
|||||||||||||||||||
Type
of development
|
2009
|
2008
|
2008
|
2007
|
2006
|
|||||||||||||||
(in
thousands of reais, unless otherwise
stated)
|
||||||||||||||||||||
Tower
|
90,797 | 52,775 | 69,868 | 83,105 | 24,297 | |||||||||||||||
Tenda
Premium
|
202,346 | 271,579 | 394,040 | 47,143 | — | |||||||||||||||
Super
6
|
46,760 | — | — | — | — | |||||||||||||||
Total
contracted sales
|
978,079 | 733,231 | 901,093 | 703,300 | 175,854 |
Nine
Months period
September
30,
|
For
the year ended December 31,
|
|||||||||||||||||||
Price
Bracket
|
2009
|
2008
|
2008
|
2007
|
2006
|
|||||||||||||||
(in
thousands of reais, unless otherwise
stated)
|
||||||||||||||||||||
Up
to R$ 60,000
|
88,220 | 69,226 | 135,630 | 109,654 | 70,383 | |||||||||||||||
From
R$ 60,000 to 90,000
|
525,491 | 371,239 | 291,707 | 409,687 | 90,048 | |||||||||||||||
From
R$ 90,000 to R$ 130,000
|
243,215 | 196,040 | 322,437 | 149,476 | 13,117 | |||||||||||||||
Above
R$ 130,000
|
121,153 | 96,726 | 151,319 | 34,483 | 2,306 | |||||||||||||||
Total
contracted sales
|
978,079 | 733,231 | 901,093 | 703,300 | 175,854 |
As of September
30,
|
As
of and for the year ended December 31,
|
|||||||||||||||||||
2009
|
2008
|
2008
|
2007
|
2006
|
||||||||||||||||
(in
thousands of reais, unless otherwise
stated)
|
||||||||||||||||||||
Sales
to be recognized
|
||||||||||||||||||||
Net
sales(1)
|
1,244,707 | 736,875 | 1,043,807 | 623,421 | 179,565 | |||||||||||||||
Cost
of units sold to be recognized
|
(838,722 | ) | (445,912 | ) | (697,896 | ) | (375,315 | ) | (136,109 | ) | ||||||||||
Expected
profit—yet to be recognized(2)
|
405,985 | 290,963 | 345,911 | 248,106 | 43,456 | |||||||||||||||
Expected
margin
|
32.6 | % | 39.5 | % | 33.1 | % | 39.8 | % | 24.2 | % |
(1)
|
Excludes
indirect PIS and COFINS taxes of
3.65%.
|
(2)
|
Based
on management’s estimates.
|
Period
of construction
|
Percentage
of costs incurred(1)
|
|||
1st
to 6th month
|
24 | % | ||
7th
to 12th month
|
70 | % | ||
13th
to 18th month
|
100 | % |
(1)
|
Including
cost of land.
|
Consolidated
Statement of Income
|
Nine-Month
Period Ended September 30,
|
%
Variation
|
||||||||||||||||||
2009
|
Total
%
|
2008
|
Total
%
|
9M09
/ 9M08
|
||||||||||||||||
(in
thousand of
reais)
|
||||||||||||||||||||
Gross
operating revenue
|
||||||||||||||||||||
Revenue
from real estate developments and sales
|
751,080 | 103.9 | % | 332,782 | 104.7 | % | 125.7 | % | ||||||||||||
Taxes
and rates
|
(27,943 | ) | 3.9 | % | (15,027 | ) | 4.7 | % | 86.0 | % | ||||||||||
Net
operating revenue
|
723,137 | 100.0 | % | 317,755 | 100.0 | % | 127.6 | % | ||||||||||||
Operating
costs
|
||||||||||||||||||||
Expenses
from real estate developments and sales
|
(493,401 | ) | 68.2 | % | (213,437 | ) | 67.2 | % | 131.2 | % | ||||||||||
Gross
profit
|
229,736 | 31.8 | % | 104,318 | 32.8 | % | 120.2 | % | ||||||||||||
Operating
income (expense)
|
||||||||||||||||||||
Selling
expenses
|
(78,897 | ) | 10.9 | % | (59,175 | ) | 18.6 | % | 33.3 | % | ||||||||||
General
and administrative expenses
|
(69,396 | ) | 9.6 | % | (64,080 | ) | 20.2 | % | 8.3 | % | ||||||||||
Net
financial result
|
1,387 | 0.0 | % | 7,456 | 2.3 | % | (81.4 | )% | ||||||||||||
Depreciation
and amortization
|
(10,940 | ) | 1.5 | % | (5,220 | ) | 1.6 | % | 109.6 | % | ||||||||||
Other
operating expenses, net
|
109
|
0.0 | % | (29,149 | ) | 9.2 | % | (100.4 | )% | |||||||||||
Total
operating income (expense)
|
(157,737 | ) | 21.8 | % | (150,168 | ) | 47.3 | % | 5.0 | % | ||||||||||
Operating
results before income tax and social contribution
|
71,999 | 10.0 | % | (45,850 | ) | 14.4 | % | (257.0 | )% | |||||||||||
Income
tax and social contribution
|
(16,288 | ) | 2.3 | % | (11,164 | ) | 3.5 | % | 45.9 | % | ||||||||||
Net
income (loss) for the period
|
55,711 | 7.7 | % | (57,014 | ) | 17.9 | % | (197.7 | )% |
Consolidated
Statement of Income
|
Year
Ended December 31,
|
%
Variation
|
||||||||||||||||||
2008
|
Total
%
|
2007
|
Total
%
|
2008/2007
|
||||||||||||||||
(in
thousand of
reais)
|
||||||||||||||||||||
Gross
operating revenue
|
||||||||||||||||||||
Revenue
from real estate developments and sales
|
504,502 | 104.0 | % | 277,514 | 104.4 | % | 81.8 | % | ||||||||||||
Taxes
and rates
|
(19,254 | ) | 4.0 | % | (11,657 | ) | 4.4 | % | 65.2 | % | ||||||||||
Net
operating revenue
|
485,248 | 100.0 | % | 265,857 | 100.0 | % | 82.5 | % | ||||||||||||
Operating
costs
|
||||||||||||||||||||
Expenses
from real estate developments and sales
|
(317,852 | ) | 65.5 | % | (181,942 | ) | 68.4 | % | 74.7 | % | ||||||||||
Gross
profit
|
167,396 | 34.5 | % | 83,915 | 31.6 | % | 99.5 | % | ||||||||||||
Operating
income (expense)
|
||||||||||||||||||||
Selling
expenses
|
(87,603 | ) | 18.1 | % | (29,776 | ) | 11.2 | % | 194.2 | % | ||||||||||
General
and administrative expenses
|
(113,718 | ) | 23.4 | % | (30,071 | ) | 11.3 | % | 278.2 | % | ||||||||||
Net
financial result
|
9,645 | 2.0 | % | 920 | 0.3 | % | 948.5 | % | ||||||||||||
Depreciation
and amortization
|
(11,499 | ) | 2.4 | % | (2,638 | ) | 1.0 | % | 335.9 | % | ||||||||||
Other
operating expenses, net
|
(22,163 | ) | 4.6 | % | 1,039 | 0.4 | % | -2233.1 | % | |||||||||||
Total
operating income (expense)
|
(225,338 | ) | 46.4 | % | (60,526 | ) | 22.8 | % | 272.3 | % | ||||||||||
Operating
results before income tax and social contribution
|
(57,942 | ) | 11.9 | % | 23,389 | 8.8 | % | -347.7 | % | |||||||||||
Income
tax and social contribution
|
19,733 | 4.1 | % | (4,657 | ) | 1.8 | % | 523.7 | % | |||||||||||
Net
income (loss) for the period
|
(38,209 | ) | 7.9 | % | 18,732 | 7.0 | % | -304.0 | % |
Consolidated
Statement of Income
|
Year
Ended December 31,
|
%
Variation
|
||||||||||||||||||
2007
|
Total
%
|
2006
|
Total
%
|
2007/2006
|
||||||||||||||||
(in
thousands of R $)
|
||||||||||||||||||||
Gross
operating revenue
|
||||||||||||||||||||
Revenue
from real estate developments and sales
|
277,514 | 104.4 | % | 81,213 | 105.0 | % | 241.7 | % | ||||||||||||
Taxes
and rates
|
(11,657 | ) | 4.4 | % | (3,898 | ) | 5.0 | % | 199.1 | % | ||||||||||
Net
operating revenue
|
265,857 | 100.0 | % | 77,315 | 100.0 | % | 243.9 | % | ||||||||||||
Operating
costs
|
||||||||||||||||||||
Expenses
from real estate developments and sales
|
(181,942 | ) | 68.4 | % | (52,303 | ) | 67.6 | % | 247.9 | % | ||||||||||
Gross
profit
|
83,915 | 31.6 | % | 25,012 | 32.4 | % | 235.5 | % | ||||||||||||
Operating
income (expense)
|
||||||||||||||||||||
Selling
expenses
|
(29,776 | ) | 11.2 | % | (1,616 | ) | 2.1 | % | 1,742.6 | % | ||||||||||
General
and administrative expenses
|
(30,071 | ) | 11.3 | % | (7,526 | ) | 9.7 | % | 299.6 | % | ||||||||||
Net
financial result
|
920 | 0.3 | % | (2,368 | ) | 3.1 | % | (138.9 | )% | |||||||||||
Depreciation
and amortization
|
(2,638 | ) | 1.0 | % | (2,590 | ) | 3.3 | % | 1.9 | % | ||||||||||
Other
operating expenses, net
|
1,039 | 0.4 | % | (2,379 | ) | 3.1 | % | (143.7 | )% | |||||||||||
Total
operating income (expense)
|
(60,526 | ) | 22.8 | % | (16,479 | ) | 21.3 | % | (267.3 | )% | ||||||||||
Operating
results before income tax and social contribution
|
23,389 | 8.8 | % | 8,533 | 11.0 | % | 174.1 | % | ||||||||||||
Income
tax and social contribution
|
(4,657 | ) | 1.8 | % | (5,657 | ) | 7.3 | % | (17.7 | )% | ||||||||||
Net
income (loss) for the period
|
18,732 | 7.0 | % | 2,876 | 3.7 | % | 551.3 | % |
As
of
September
30,
|
As
of December 31,
|
|||||||||||
2009
|
2008
|
2007
|
||||||||||
(in
thousands)
|
||||||||||||
Real
estate development receivables:
|
||||||||||||
Current
|
784,097 | 262,732 | 327,398 | |||||||||
Non-current
|
1,379,803 | 971,863 | 582,167 | |||||||||
Total
|
2,163,900 | 1,234,595 | 909,565 | |||||||||
Receivables
to be recognized on Tenda’s balance sheet according to
percentage of completion method:
|
||||||||||||
Current
|
636,499 | 273,329 | 191,053 | |||||||||
Non-current
|
655,361 | 810,020 | 455,926 | |||||||||
Total
|
1,291,860 | 1,083,349 | 646,979 | |||||||||
Total
clients’ portfolio
|
35,368 | 20,872 | 14,203 |
As
of September 30,
2009
|
||||
(in
thousands)
|
||||
Maturity
|
||||
2009
|
113,498 | |||
2010
|
814,959 | |||
2011
|
1,091,684 | |||
Thereafter
|
143,759 | |||
Total
|
2,163,900 |
As
of September 30,
|
As
of December 31,
|
|||||||||||||||||||
2009
|
2008
|
2008
|
2007
|
2006
|
||||||||||||||||
(in
thousands of R$)
|
||||||||||||||||||||
Current
loans and financing
|
91,446 | 26,642 | 52,584 | 23,304 | 1,505 | |||||||||||||||
Non-current
loans and financing
|
655,584 | 78,222 | 73,866 | 794 | 4,014 | |||||||||||||||
(-)
Cash and cash equivalents
|
492,233 | 92,995 | 181,660 | 400,512 | 509 | |||||||||||||||
Net
debt
|
(254,797 | ) | (11,869 | ) | 55,210 | 376,414 | (5,010 | ) | ||||||||||||
Shareholders’
equity
|
1,121,373 | 629,645 | 1,062,214 | 683,677 | 8,254 | |||||||||||||||
Net
debt to shareholders’ equity
|
22.7 | % | (1.8 | )% | 5.2 | % | 55.1 | % | (25.6 | )% |
Maturity
Schedule
|
||||||||||||||||||||
Total
|
Less
than 1 year
|
1-3
years
|
3-5
years
|
More
than 5 years
|
||||||||||||||||
(in
thousands of R$)
|
||||||||||||||||||||
Loans
and financing
|
127,169 | 71,585 | 55,584 | — | — | |||||||||||||||
Debentures
|
600,000 | — | — | 600,000 | — | |||||||||||||||
Interest
(1)
|
217,482 | 53,494 | 101,938 | 62,050 | — | |||||||||||||||
Real
estate development obligations (2)
|
838,722 | 691,718 | 147,004 | — | — | |||||||||||||||
Obligations
for land purchase (3)
|
57,676 | 45,043 | 12,633 | — | — | |||||||||||||||
Acquisition
of investments
|
44,637 | 8,679 | 29,758 | 6,199 | — | |||||||||||||||
Total
|
1,885,686 | 870,519 | 346,917 | 668,249 | — |
(1)
|
Estimated
interest payments are determined using the interest rate at September 30,
2009. However, Tenda’s non-current debt is subject to variable interest
rates and inflation indices, and these estimated payments may differ
significantly from payments actually
made.
|
(2)
|
Including
obligations not reflected in the balance—CFC Resolution No. 963. Pursuant
to Brazilian GAAP, and since the adoption of CFC Resolution No. 963, the
total costs to be incurred on the units launched but not sold are not
recorded on Tenda’s balance sheet. As of September 30, 2009, the amount of
“real estate development obligations” related to units launched but not
sold was R$584.0 million.
|
(3)
|
Refers
to the acquisition of Cotia Empreendimento Imobiliário
Ltda.
|
|
·
|
revenue
recognition;
|
|
·
|
stock
option plans;
|
|
·
|
business
combinations; and
|
|
·
|
effects
of deferred taxes on the differences
above.
|
|
·
|
The
Special Committee first met on October 26, 2009. At that
meeting, the Special Committee was formally created and the members of the
Special Committee discussed their duties and the steps to be taken by the
Committee in satisfying these duties. The Special Committee
received a report of some of the initial financial considerations provided
to Gafisa by its financial advisor. The Special
Committee discussed the financial, legal and other advisors
proposed to be retained by the Special Committee and concluded that the
proposed advisors had the professional qualifications, experience and
knowledge necessary to provide the advice and services for which they were
being retained. The Special Committee also noted that Tenda had agreed to
pay the fees and expenses of these advisers and accordingly, that Tenda
would execute on behalf of the Special Committee any necessary or
appropriate documentation with these advisers, all as approved by the
Special Committee. Accordingly, the Special Committee concurred
in the retention by the Special Committee of (1) Banco Itaú BBA S.A., or
Itaú BBA, to provide a valuation report to the Special Committee for the
purpose of assisting the Special Committee in assessing the appropriate
exchange ratio (or range thereof) for the Restructuring and providing its
recommendation to the Board of Directors of Tenda, and (2)
Ulhôa Canto, Rezende e Guerra Advogados to act as Brazilian legal counsel
to the Special Committee.
|
|
·
|
At
a Special Committee meeting held on October 27, 2009, Estáter Assessoria
Financeira Ltda. or Estáter, the financial advisor retained by Gafisa
presented its financial analyses in connection with the Restructuring and
explained that the financial analyses were prepared by using the
methodologies most frequently used for financial and economic valuations
in the real estate market: (1) market metrics; (2) balance sheet metrics;
and (3) multiples. The presentation concluded with a proposal of an
exchange ratio of 0.189 Gafisa share per Tenda common share. The Estáter
presentation was made available to everyone at the meeting. The members of
the Special Committee then met separately with their own financial and
legal advisors and concluded that valuations of Tenda and Gafisa should be
performed according to the
|
|
following
methodologies: (1) market value (quotation and target price); (2)
liquidation value; (3) book value; and (4) adjusted book value. The
Special Committee and Estáter agreed that the financial analyses of
Estáter would be revised accordingly and the Special Committee instructed
its financial adviser, Itaú BBA to prepare a valuation report for the
Special Committee on that basis.
|
|
·
|
On
October 28, 2009, the Special Committee held a conference call with its
financial and legal advisors to generally discuss a preliminary draft of
the valuation report prepared by Itaú
BBA.
|
|
·
|
On
October 29, 2009, the Special Committee held another conference call with
its financial and legal advisors to further discuss the valuation report
prepared by Itaú BBA. The representatives of Itaú BBA explained the
valuation methodologies used by them. The Special Committee
requested that Itaú BBA reach and deliver to the Special Committee a
conclusion based on its report in order to enable the Special Committee to
consider that conclusion in making its recommendation to Tenda’s Board of
Directors.
|
|
·
|
At
a meeting held on October 30, 2009, the Special Committee further reviewed
and discussed with its advisors the preliminary valuation report prepared
by Itaú BBA, including the methodologies used for the valuation. During
the meeting, Itaú BBA reaffirmed to the Special Committee that the real
estate market, which is core business of both Tenda and Gafisa, does not
view a discounted cash flow analysis as an adequate methodology for
valuing real estate companies.
|
|
·
|
At
a meeting held on November 3, 2009, the Special Committee and Itaú BBA
discussed further Itaú BBA’s preliminary valuation report and its
conclusion that an indicative range for the exchange ratio in the
Restructuring would be between 0.196 to 0.210 Gafisa shares for each Tenda
share. Following these discussions, which included discussions as to the
metrics, methodologies and assumptions of the report, Itaú BBA stated that
the discussions probably would lead it to an upward revision in the
indicative exchange ratio range when it delivered its final valuation
report and that Itaú would estimate the new range to be between 0.200 to
0.220 Gafisa shares for each Tenda
share.
|
|
·
|
At
a meeting of the Special Committee held later on November 3, 2009 and also
attended by representatives of Gafisa and Estáter, Itaú BBA presented its
final valuation report, confirming its previous estimate that, in its
view, the indicative range of exchange ratios for the Restructuring was
between 0.200 and 0.220 Gafisa share for each Tenda common
share. The Special Committee then informed the representatives
of Gafisa and Estáter that, based on the advice of its financial adviser
and on the Special Committee’s own views, it recommended an
exchange ratio of 0.210 Gafisa share for each Tenda common share. The
Special Committee’s indicated that the median point on the range of
exchange ratios indicated by Itaú BBA in its report was justified by
either (1) the higher future potential value of the low income sector
which was not fully captured in the relative market value of Tenda given
the lower liquidity of its shares compared to the liquidity of the Gafisa
shares and/or (2) the less frequent coverage of such market by analysts.
The representatives of Gafisa and Estáter did not agree with the
justification related to the higher future potential value and also
questioned some parameters of the analysis made by Itaú BBA, in particular
with regard to the coverage by analysts and the use of market average
prices based on a period of 180 days. These questions were discussed at
the meeting and each party presented their justifications and
arguments.
|
|
·
|
At
a Special Committee meeting held on November 4, 2009, the representatives
of Estáter and Gafisa stated that the estimated range of exchange ratios
of 0.200 to 0.220 indicated on the Itaú BBA’s report adjusted by Gafisa
and Estáter’s views on the matter led to an estimated range of exchange
ratios of 0.192 to 0.217. Gafisa’s representatives proposed to the Special
Committee an exchange ratio of 0.200, which corresponded to the highest
estimated value within the range originally proposed by the board of
directors of Gafisa and disclosed on October 22, 2009 in the initial
announcement of by Gafisa of its intention to consummate the Merger. The
members of the Special Committee then met separately and decided to
negotiate for an exchange ratio higher than
0.200.
|
|
·
|
At
a meeting held on November 5, 2009, the Special Committee and its advisors
reviewed all the valuations, questions and arguments raised during the
previous meetings of the Special Committee and
|
|
during
the meetings of the Special Committee with the representatives of Gafisa
and Estáter. The Special Committee also reviewed the initial
announcement of the Restructuring dated October 22, 2009 and concluded
that the exchange ratio should be higher than 0.200 Gafisa shares for each
Tenda share.
|
|
·
|
At
a meeting held later on November 5, 2009, the Special Committee explained
to the representatives of Gafisa and Estáter that they had reviewed all
the valuations, questions and arguments raised in the previous meetings
and the initial announcement by Gafisa dated October 22, 2009 and that the
Special Committee had concluded that the parties should reach an exchange
ratio higher than 0.200. The representatives of Gafisa stated that the
initial proposal (exchange ratio of 0.189 Gafisa shares for each Tenda
share) had already been raised to 0.200. However, the
representatives of Gafisa requested the Special Committee to present a
final proposal to be analyzed by Gafisa. Therefore, the Special Committee
proposed an exchange ratio of 0.205 Gafisa shares for each Tenda share,
corresponding to the median point of the estimated range of exchange
ratios of 0.192 to 0.217 proposed by Gafisa after adjustments had been
made to Itaú BBA’s valuation report. The representatives of Gafisa then
met separately and, after returning to the meeting room, explained they
had spoken with other representatives of Gafisa and that they believed
that it would be possible to submit the Special Committee’s latest
proposal for consideration by the entire Gafisa board of directors.
Therefore, the Special Committee decided to formally recommend to the
board of directors of Tenda the adoption of an exchange ratio of 0.205
Gafisa shares for each Tenda share.
|
|
·
|
At
a meeting held on November 6, 2009, the Special Committee described to the
Fiscal Council of Tenda all the work that had been performed by the
Special Committee, including the financial analyses reviewed by the
Special Committee, the discussions by the Special Committee with its own
advisors and the discussions and negotiations with representatives of
Gafisa and Estáter. The Special Committee explained that, as a result of
these activities, it had concluded than an exchange ratio of 0.205 Gafisa
share for each Tenda share would be appropriate. After that, the Audit
Committee stated that all information related to the setting of the
exchange ratio was made available to them and they felt comfortable with
the presentation made by the Special Committee and with its conclusion to
recommend to the board of directors of Tenda the adoption of an exchange
ratio of 0.205 Gafisa share per Tenda common
share.
|
|
·
|
On
November 6, 2009, the Special Committee submitted a written recommendation
to the Tenda board of directors. After describing some of the prior work
undertaken by them, the Special Committee recommended that the Tenda board
of directors adopt an exchange ratio of 0.205 Gafisa shares for each Tenda
common share in the Restructuring.
|
|
·
|
the
Special Committee is not comprised entirely of persons having no
relationship with Gafisa or any of its
affiliates;
|
|
·
|
two
of the three members of the Special Committee are members of the board of
directors of Tenda and one of these two was elected to that position by
the noncontrolling shareholders of Tenda;
and
|
|
·
|
the
Special Committee worked independently and made a recommendation to the
board of directors of Tenda on the exchange ratio and the Tenda board of
directors accepted the Special Committee’s recommendation but the Special
Committee did not have the authority to act on behalf, or in place of the
Tenda board of directors.
|
|
·
|
Gafisa
and Tenda believe the Restructuring is likely to result in the creation of
a Brazilian national leader in the civil construction sector;
and
|
|
·
|
Gafisa
and Tenda believe the Restructuring is likely to permit Gafisa and Tenda
to derive economic benefits as a result of the larger scale of their
combined operations, to increase operational, commercial and
administrative efficiencies and to permit the reduction of redundant
costs, all allowing for the possibility of larger future investments by
Gafisa in its own business and the possibility of a higher sustainable
growth rate.
|
|
·
|
the
views of the management of Gafisa and Tenda set forth
above;
|
|
·
|
that
the Special Committee had received a valuation report from Itaú BBA
expressing the view that, as of the date of that report and based on and
subject to the considerations and limitations of Itaú BBA’s analysis
described in that report and based on other matters as Itaú BBA considered
relevant, if the exchange ratio recommended by the Special Committee and
approved by the boards of directors of Gafisa and Tenda with respect to
the Restructuring falls within the implied exchange ratio of 0.200 to
0.220 Gafisa share per Tenda common share, derived from the valuation
analyses performed by Itaú BBA with respect to Gafisa and Tenda, applied
on a consistent basis, then the Exchange Ratio would constitute equitable
treatment from the perspective of Tenda’s
noncontrolling shareholders as described in such
report;
|
|
·
|
that
the final terms of the Restructuring approved by the boards were
consistent with the recommendations made by the Special Committee to the
Tenda board of directors;
|
|
·
|
that
the Restructuring will allow holders of common shares of Tenda to exchange
their securities at an equitable exchange ratio, as recommended by the
Special Committee and as determined by independent financial
advisors;
|
|
·
|
that
the Restructuring will allow holders of common shares of Tenda to receive
Gafisa common shares having substantially the same rights as their common
shares of Tenda but that instead are expected to enjoy greater liquidity
than the securities previously held by them;
and
|
|
·
|
that
the Restructuring will allow Tenda shareholders who do not want to become
shareholders in Gafisa a right to exercise appraisal rights but the
Restructuring will offer those Tenda shareholders who do not exercise
withdrawal rights an Exchange Ratio having a higher equivalent market
price for the Tenda shares than the value of the withdrawal rights offered
to dissenting Tenda shareholders.
|
|
·
|
such
notice of meeting received by the Gafisa Depositary from Gafisa (or a
summary in English of the notice of the
meeting);
|
|
·
|
a
statement that the Gafisa ADS Owners as of the close of business on the
record date referenced above will be entitled, subject to any applicable
law, the provisions of the Deposit Agreement, the by-laws of Gafisa and
the provisions of the deposited securities, to instruct the Gafisa
Depositary as to the exercise of the voting rights pertaining to the
common shares represented by their respective Gafisa
ADSs; and
|
|
·
|
a
statement as to the manner in which such instructions may be
given.
|
|
·
|
a
couple of days after the end of the period for the exercise of withdrawal
rights by those Tenda shareholders to whom withdrawal rights are available
(which period will end 30 days after publication of the minutes of the
EGMs called to approve the Restructuring, as described in “—Withdrawal
Rights” below); and
|
|
·
|
the
end of the period during which management of the companies is permitted
pursuant to Brazilian law to unwind the Restructuring. Under Brazilian
law, if management of the companies believes that the total value of the
withdrawal rights exercised by shareholders of the Tenda may put at risk
the financial stability of the companies, management may, within 10 days
after the end of the withdrawal rights period, call an extraordinary
general meeting of shareholders to unwind the
Restructuring.
|
|
·
|
held
meetings with certain senior officers, members of the Special Committee
and other representatives and advisors of each of Gafisa and Tenda
concerning the business, operations and prospects of Gafisa and
Tenda;
|
|
·
|
examined
certain publicly available business and financial information relating to
each of Gafisa and Tenda and certain of their subsidiaries as well as
certain financial forecasts of certain subsidiaries and investments and
other information and data relating to each of Gafisa and Tenda, their
subsidiaries and investments, which were provided by Tenda or Gafisa to
Itaú BBA;
|
|
·
|
examined
the audited consolidated financial statements of Tenda and Gafisa for the
fiscal years ended December 31, 2007 and December 31, 2008;
and
|
|
·
|
considered
such other financial studies and analyses as Itaú BBA deemed appropriate,
including financial, economic and market
criteria.
|
|
a.
|
Simple average – market
price. Itaú BBA analyzed the share prices of each of
Tenda and Gafisa for the 30, 60, 90, 120 and 180-day periods prior to the
release of the Tenda’s Material Fact related to the Restructuring dated as
of October 22, 2009, and calculated an exchange ratio based on simple
averages utilizing the average closing price per share of Tenda and Gafisa
for these periods. This methodology resulted in an exchange ratio range of
0.188 to 0.196 shares of Gafisa per share of
Tenda.
|
|
b.
|
Weighted average – market
price. Itaú BBA analyzed the share prices of each
of Tenda and Gafisa for the 30, 60, 90, 120 and 180-day periods prior to
the release of the Tenda’s Material Fact related to the Restructuring
dated as of October 22, 2009, and calculated a weighted average exchange
ratio based on the volume-weighted average price per share of Tenda and
Gafisa for these periods. This methodology resulted in an exchange ratio
range of 0.188 to 0.196 shares of Gafisa per share of
Tenda.
|
|
c.
|
Target
price. Itaú BBA calculated the exchange ratio based on
the target prices of equity research analysts. Itaú BBA analyzed equity
research reports released within the period between July and October of
2009. Itaú BBA calculated the exchange ratio based on the minimum and
maximum target prices for Tenda and Gafisa. The calculation resulted in an
exchange ratio range of 0.222 to 0.224 shares of Gafisa per share of
Tenda. The minimum target prices were based on the reports of JP Morgan,
in the case of Tenda, and Bank of America Merrill Lynch, in the case of
Gafisa. The maximum target prices were based on the reports of
Brascan Corretora, in the case of Tenda, and Barclays, in the case of
Gafisa.
|
|
a.
|
Book
value. Itaú BBA calculated the exchange ratio based on
the Book Value per share of Tenda and Gafisa. Book Value was
calculated based on the earnings releases of Tenda and Gafisa for the
second quarter of 2009. The number of shares used did not consider
treasury shares and was based on the most recent information available.
This methodology resulted in an exchange ratio of 0.209 shares of Gafisa
per share of Tenda.
|
|
b.
|
Adjusted Book
value. Itaú BBA also calculated the exchange ratio based
on the Adjusted Book Value per share of Tenda and Gafisa. Adjusted Book
Value was calculated based on the earnings releases of Tenda and Gafisa
for the second quarter of 2009. The Adjusted Book Value was calculated as
the sum of the Book Value and the Backlog. The Backlog is the difference
between sales and costs to be recognized. This methodology resulted in an
exchange ratio of 0.185 shares of Gafisa per share of
Tenda.
|
|
c.
|
NAV. Itaú
BBA also calculated the exchange ratio based on the NAV per share of Tenda
and Gafisa. Itaú BBA calculated the NAV or Liquidation Value based on the
earnings releases of Tenda and Gafisa for the second quarter of 2009. NAV
was calculated based on the following methodology: the sum of (i)
receivables, inventories and sales to be recognized, less (ii) costs to be
recognized, land bank to be paid, net debt and
noncontrolling interests. This methodology resulted in an
exchange ratio of 0.148 shares of Gafisa per share of
Tenda.
|
|
a.
|
Price to Book Value
multiple. Itaú BBA calculated the exchange ratio based
on the P/BV of the selected comparable companies for Tenda and Gafisa.
Itaú BBA calculated P/BV multiples based on the share price of the
comparable companies on October 27, 2009, and the most recent released
number of shares excluding treasury shares of each comparable company. The
Book Value of the comparable companies was based on the earnings releases
of the respective companies for the second quarter of 2009. This
methodology resulted in an exchange ratio range of 0.186 to 0.301 shares
of Gafisa per share of Tenda.
|
|
b.
|
Price to Adjusted Book Value
multiple. Itaú BBA calculated the exchange ratio based
on the P/Adj BV of the selected comparable companies for Tenda and
Gafisa. Itaú BBA calculated P/Adj BV multiples based on the
share price of the comparable companies on October 27, 2009, and the most
recent released number of shares excluding treasury shares of each
comparable company. The Adjusted Book Value of the comparable companies
was based on the earnings releases of the respective companies for the
second quarter of 2009 and calculated according to the formula described
above. This methodology resulted in an exchange ratio range of 0.182 to
0.251 shares of Gafisa per share of
Tenda.
|
|
c.
|
P/ NAV
multiple. Itaú BBA calculated the exchange ratio based
on the P/NAV of the selected comparable companies for Tenda and
Gafisa. Itaú BBA calculated P/NAV multiples based on the share
price of the comparable companies on October 27, 2009, and the most recent
released number of shares excluding treasury shares of each comparable
company. The NAV of the comparable companies was based on the earnings
releases of the respective companies for the second quarter of 2009 and
calculated according to the formula described above. This methodology
resulted in an exchange ratio range of 0.173 to 0.205 shares of Gafisa per
share of Tenda.
|
|
a.
|
held
meetings with certain senior officers, representatives and advisors of
Gafisa concerning the business, operations and prospects of Gafisa and
Tenda;
|
|
b.
|
examined
certain publicly available business and financial information relating to
each of Gafisa and Tenda and certain of their subsidiaries as well as
certain financial forecasts from research institutions of certain
subsidiaries and investments and other information and data relating to
each of Gafisa and Tenda, their subsidiaries and investments, which were
provided by Gafisa to Estáter;
|
|
c.
|
examined
the audited consolidated financial statements of Gafisa and Tenda for the
fiscal years ended December 31, 2007 and December 31, 2008;
and
|
|
d.
|
considered
such other financial studies and analyses as Estáter deemed appropriate,
including financial, economic and market
criteria.
|
|
a.
|
Weighted average – market
price. Estáter analyzed the share prices of each
of Gafisa and Tenda for the 30, 60, 90 and 120-day periods prior to the
release of the Gafisa’s Material Fact related to the Restructuring dated
as of October 21, 2009, and calculated the exchange ratio based on the
volume-weighted average price per share of Gafisa and Tenda for these
periods. This methodology resulted in an exchange ratio range of 0.188 to
0.194 shares of Gafisa per share of Tenda. Estáter also
analyzed the average of the daily exchange ratio for shares of Gafisa and
Tenda for the 90-day period prior to the release of the Material Fact
related to the Restructuring dated as of October 21, 2009, which resulted
in an exchange ratio of 0.189 shares of Gafisa per share of
Tenda.
|
|
b.
|
Market
Multiples. Estáter analyzed principal market multiples,
including Average Enterprise Value/Net Revenues, Average Enterprise
Value/EBITDA, Average P/E, and Price to Book Value, for a selected sample
of comparable companies. Estáter considered Cyrela Brazil Realty S.A.
Empreendimentos e Participações, or “Cyrela”, and Rossi Residencial
S.A., or “Rossi”, as Gafisa’s comparable companies due to their
diversified portfolio and their relevant size and liquidity. Estáter
considered MRV Engenharia e Participações S.A., or “MRV”, as Tenda’s
comparable company due to its focus on low-income housing and their
relevant size and liquidity. These calculations resulted in an
exchange ratio range based on 2009 multiples of 0.110 to 0.221 shares of
Gafisa per share of Tenda and based on 2010 multiples of 0.110 to 0.221
shares of Gafisa per Tenda.
|
|
c.
|
Target
price. Estáter calculated the exchange ratio based on
the target prices of equity research analysts. Estáter analyzed equity
research reports released within the period between August and October of
2009. Estáter calculated the exchange ratio based on the lower and higher
target prices for Gafisa and Tenda in such period. The calculation
resulted in an exchange ratio range of 0.191 to 0.214 shares of Gafisa per
share of Tenda. The lower target prices were based on the reports of
Goldman Sachs, in the case of Gafisa, and JP Morgan, in the case of
Tenda. The higher target prices were based on the reports of JP
Morgan and Santander, in the case of Gafisa, and Fator, in the case of
Tenda.
|
|
a.
|
Price to Book Value
multiple. Estáter calculated the exchange ratio based on
the P/BV of Gafisa and Tenda. The Book Value of Gafisa and Tenda was based
on the earnings releases of the respective companies for the second
quarter of 2009. This methodology resulted in an exchange ratio of 0.209
shares of Gafisa per share of
Tenda.
|
|
b.
|
Price to Adjusted Book Value
multiple. Estáter calculated the exchange ratio based on
the P/Adj BV of the selected comparable companies for Gafisa and Tenda.
Estáter calculated P/Adj BV multiples based on the share price of the
comparable companies on October 27, 2009, and the most recent released
number of shares excluding treasury shares of each comparable company.
This methodology resulted in an exchange ratio range of 0.182 to 0.251
shares of Gafisa per share of
Tenda.
|
Exchange
ratio (Gafisa shares per one Tenda share)
|
||||||||
Methodology
|
Minimum
|
Maximum
|
||||||
Share
price (based on average daily trading price)
|
0.188 | 0.202 | ||||||
Share
price (based on weighted average trading price)
|
0.189 | 0.210 | ||||||
Price
to NAV multiple
|
0.198 | 0.212 | ||||||
Price
to adjusted book value multiple
|
0.212 | 0.226 | ||||||
Price
to book value multiple
|
0.242 | 0.259 |
|
1.
|
Net
equity report of Gafisa and Tenda for purposes of Article 264 of Brazilian
Law No. 6,404/76, which is the Brazilian law that requires an appraisal of
the net worth of the Companies at market prices as of a reference date and
disclosure to shareholders of the outcome of that appraisal so that
shareholders have an independent parameter against which to judge the
Exchange Ratio and so that, for purposes of determining the value of a
shareholder’s withdrawal rights, this exchange ratio can be compared to
the Exchange Ratio proposed in the Restructuring. According to
the net worth appraisal of APSIS, the exchange ratio of Tenda shares for
Gafisa shares, determined on this basis would be 0.186199 shares of Gafisa
for each share of Tenda.
|
|
2.
|
Book
value report of Tenda for purposes of Article 8 of Brazilian Law No.
6,404/76, which is the Brazilian law that requires an appraisal of the
book value of the shares of Tenda used to determine the capital increase
of the Gafisa. APSIS concluded that the indicative value, for
this purposes, of one Tenda share is R$2.80 See “Part Five—The
Restructuring—Withdrawal Rights.”
|
|
·
|
interviewed
management of the Companies and reviewed documentation furnished by those
companies with respect to the aging of accounts receivable and accounts
payable, credit controls, derivatives with respect to indebtedness and
other matters;
|
|
·
|
analyzed
each asset and liability account on the balance sheets of the Companies
and, based on that analysis, adjusted each account to market
value;
|
|
·
|
calculated
the tax effects of those adjustments that represented a capital gain or
loss that would be deductible for tax purposes;
and
|
|
·
|
based
on those adjustments and calculations, calculated the market value of the
net equity of the Companies.
|
|
·
|
for
fixed assets, APSIS generally obtained records from each company regarding
its fixed assets, calculated the estimated replacement value of the
assets, estimated the useful lives of the assets and used these estimates
to calculate the market value of the assets, except for certain assets of
low economic value, which were valued based on their book
values;
|
|
·
|
for
most other tangible assets and liabilities (pursuant to Brazilian law,
tangibles assets and liabilities considered to be immaterial are not
required to be valued), APSIS
either:
|
|
·
|
determined
the aging of the account from information provided by the applicable
company and calculated the present value of the account using a discount
rate equivalent to the cost of capital of each of the companies, adjusted
for the relative inflation rates in Brazil;
or
|
|
·
|
where
applicable, determined that the book value approximated the market value;
and
|
|
·
|
for
the intangible assets (in this case, exclusively Gafisa and Tenda
trademarks), APSIS estimated a hypothetical expense the Companies would
have to pay in royalties for the utilization of third-parties’ trademarks,
calculated the present value, using a discount rate equivalent to the cost
of capital of each of the Companies, of the incremental cash flow after
taxes the Companies would save from not paying such royalties and used
these estimated to calculate the market value of the assets;
and
|
|
·
|
for
the investments of Gafisa and Tenda in their operating subsidiaries, APSIS
calculated the net equity of those subsidiaries based on balance sheets
for those subsidiaries as of September 30, 2009 and adjusted accordingly
the amounts recorded as equity investments in those subsidiaries by Gafisa
and Tenda.
|
Company
|
Market
Value of Net Equity Per Shares as of September 30,
2009
|
|
(in
reais)
|
||
Gafisa
|
16.315994
|
|
Tenda
|
3.038015
|
Company
|
Hypothetical
Exchange Ratio If Such Ratio Had Been Calculated
Using
the
Market Value of Net Equity of Companies as of
September
30, 2009
|
|
(in
reais)
|
||
Tenda
per Gafisa’s shares
|
0.186199
|
|
·
|
reviewed
certain financial analyses and forecasts for Tenda prepared and approved
by the senior management Tenda;
|
|
·
|
reviewed
financial statements of Tenda for the period ended September 30, 2009;
and
|
|
·
|
reviewed
certain other financial information with respect to each of the Companies,
including, but not limited to, the cash and bank balances, loans and other
debt obligations and hedging and contingencies provisions of each as of
September 30, 2009.
|
|
·
|
the
Gafisa shares are duly authorized, validly issued, fully paid,
non-assessable and legally
obtained;
|
·
|
all
preemptive (and similar rights, if any, with respect to such Gafisa shares
have been validly waived or
exercised;
|
·
|
the
holder of Gafisa shares is duly authorized to deposit the
shares;
|
·
|
the
Gafisa shares presented for deposit are free and clear of any lien,
encumbrance, security interest, charge, mortgage or adverse claim, and are
not, and the ADSs issuable upon such deposit will not be, “restricted
securities” (as defined in the deposit agreement);
and
|
·
|
the
Gafisa shares presented for deposit have not been stripped of any rights
or entitlements.
|
Name
|
Position
|
Date
Elected
|
|||
Gary
R. Garrabrant
|
Chairman
|
April
4, 2008
|
|||
Caio
Racy Mattar
|
Director
|
April
4, 2008
|
|||
Richard
L. Huber
|
Director
|
April
4, 2008
|
|||
Thomas
J. McDonald
|
Director
|
April
4, 2008
|
|||
Gerald
Dinu Reiss
|
Director
|
April
14, 2008
|
|||
Jose
Ecio Pereira da Costa Junior
|
Director
|
April
30, 2008
|
Name
|
Position
|
Date
Elected
|
||
Wilson
Amaral de Oliveira
|
Chief
Executive Officer
|
December
22, 2006
|
||
Alceu
Duilio Calciolari
|
Chief
Financial Officer and Investor Relations Officer
|
December
22, 2006
|
||
Antonio
Carlos Ferreira Rosa
|
Officer
|
December
22, 2006
|
||
Mario
Rocha Nesto
|
Officer
|
December
22, 2006
|
||
Odair
Garcia Senra
|
Officer
|
December
22, 2006
|
Name
|
Position
|
Date
Elected
|
||
Wilson
Amaral de Oliveira
|
Chairman
|
April
24, 2009
|
||
Alceu
Duilio Caliolari
|
Vice-Chairman
|
April
24, 2009
|
||
Fernando
Cesar Calamita
|
Director
|
April
24, 2009
|
||
Rodrigo
Osmo
|
Director
|
April
24, 2009
|
||
Henrique
de Freitas Alves Pinto
|
Director
|
April
24, 2009
|
||
Thomas
Joseph McDonald
|
Director
|
April
24, 2009
|
||
Mauricio
Luis Luchetti
|
Director
|
April
24, 2009
|
Name
|
Position
|
Date
Appointed
|
||
Carlos
Eduardo Dan Alves Trostli
|
Chief
Executive Officer
|
April
28, 2009
|
||
Paulo
Roberto Cassoli Mazzali
|
Chief
Financial Officer, Chief Investor Relations Officer and Chief
Administrative Officer
|
April
28, 2009
|
||
Marcelo
Silva de Souza
|
Chief
Operations Officer
|
April
28, 2009
|
||
Daniela
Ferrari Toscano de Britto
|
Chief
Sales Officer and Chief Development Officer
|
April
28, 2009
|
Name
|
Position
|
Date
Elected
|
||
Vitor
Hugo dos Santos Pinto
|
Member
|
April
28, 2009
|
||
Laércio
Lampiasi
|
Member
|
April
28, 2009
|
||
Luiz
Fernando Moreira Cruz
|
Member
|
April
28, 2009
|
||
Aline
de Oliveira Lima
|
Deputy
Member
|
April
28, 2009
|
||
Fabio
Antônio Pereira
|
Deputy
Member
|
April
28, 2009
|
||
Rodrigo
Luis Rey
|
Deputy
Member
|
April
28, 2009
|
·
|
50%
of net income (after the deduction of social contribution on net profits
but before taking into account the provision for corporate income tax and
the amounts attributable to shareholders as interest on shareholders’
equity) for the period in respect of which the payment is made;
and
|
·
|
50%
of the sum of retained profits and profit reserves as of the date of the
beginning of the period in respect of which the payment is
made.
|
·
|
exempt
from income tax when realized by a Non-Brazilian Holder that (1) has
registered its investment in Brazil with the Central Bank under the rules
of Resolution No. 2,689 (a “2,689 Holder”), and (2) is not a resident in a
country or location which is defined as a “tax haven jurisdiction” for
this purpose (as described below);
or
|
·
|
subject
to income tax at a rate of up to 25% in any other case, including a case
of gains assessed by a Non-Brazilian Holder that is not a 2,689 Holder,
and is a resident of a country or location defined as “tax haven
jurisdiction” for this purpose (as described below). In these cases, a
withholding income tax of 0.005% of the sale value will be applicable and
can be later offset with the eventual income tax due on the capital gain.
This 0.005% withholding income tax is not levied in day trade
transactions.
|
·
|
certain
financial institutions;
|
·
|
insurance
companies;
|
·
|
dealers
or traders in securities who use a mark-to-market method of tax
accounting;
|
·
|
persons
holding shares as part of a hedge, straddle, integrated transaction, or
similar transaction;
|
·
|
persons
whose functional currency for U.S. federal income tax purposes is not the
U.S. dollar;
|
·
|
entities
classified as partnerships for U.S. federal income tax
purposes;
|
·
|
tax-exempt
entities, including “individual retirement accounts” or “Roth
IRAs”;
|
·
|
persons
who will own 5% or more of the total voting power or the total value of
Gafisa stock after the
Restructuring;
|
·
|
persons
who acquired the Tenda shares pursuant to the exercise of any employee
stock option or otherwise as compensation;
or
|
·
|
nonresident
alien individuals who have lost their U.S. citizenship or who have ceased
to be taxed as U.S. resident
aliens.
|
·
|
a
citizen or individual resident of the United
States;
|
·
|
a
corporation, or other entity taxable as a corporation, created or
organized in or under the laws of the United States or any political
subdivision thereof; or
|
·
|
an
estate or trust the income of which is subject to U.S. federal income
taxation regardless of its source.
|
·
|
Subject
to the discussion below under “—Passive Foreign Investment Company Rules,”
U.S. Holders will not recognize gain or loss when they exchange their
Tenda shares for Gafisa shares, except to the extent of any gain
attributable to cash received in lieu of a fractional Gafisa share as
discussed below;
|
·
|
the
aggregate tax basis in the Gafisa shares U.S. Holders receive in the
Restructuring (including any fractional shares U.S. Holders are deemed to
receive and exchange for cash) will equal the aggregate tax basis in the
Tenda shares surrendered; and
|
·
|
the
holding period for the Gafisa shares that a U.S. Holder receives in the
Restructuring will include the U.S. Holder’s holding period for the Tenda
shares surrendered in the exchange.
|
Gafisa
|
||||||||||||||||||||||||
New
York Stock Exchange
US$
per ADS
|
BM&FBOVESPA
R$
per common share
|
|||||||||||||||||||||||
High
|
Low
|
Volume
|
High
|
Low
|
Volume
|
|||||||||||||||||||
Year
Ended
|
||||||||||||||||||||||||
December
31, 2006 (1)
|
— | — | — | 35.20 | 17.70 | 430,555 | ||||||||||||||||||
December
31, 2007
|
40.50 | 23.10 | 418,005 | 35.61 | 22.50 | 897,085 | ||||||||||||||||||
December
31, 2008
|
46.50 | 5.41 | 930,018 | 38.26 | 6.86 | 1,238,592 | ||||||||||||||||||
Quarter
|
||||||||||||||||||||||||
First
quarter 2007
|
27.77 | 24.89 | 1,164,963 | 35.30 | 25.70 | 466,779 | ||||||||||||||||||
Second
quarter 2007
|
35.32 | 24.65 | 310,953 | 34.02 | 25.25 | 889,111 | ||||||||||||||||||
Third
quarter 2007
|
35.09 | 23.10 | 405,016 | 33.41 | 22.50 | 1,141,404 | ||||||||||||||||||
Fourth
quarter 2007
|
40.50 | 30.00 | 407,786 | 35.61 | 27.01 | 1,089,472 | ||||||||||||||||||
First
quarter 2008
|
41.50 | 29.96 | 771,929 | 34.60 | 25.50 | 1,128,515 | ||||||||||||||||||
Second
quarter 2008
|
46.50 | 33.36 | 969,276 | 38.26 | 27.50 | 995,435 | ||||||||||||||||||
Third
quarter 2008
|
35.59 | 20.97 | 890,823 | 28.20 | 19.90 | 1,206,926 | ||||||||||||||||||
Fourth
quarter 2008
|
24.60 | 5.41 | 1,080,111 | 23.79 | 6.86 | 1,621,471 | ||||||||||||||||||
First
quarter 2009
|
12.11 | 7.33 | 674,687 | 13.23 | 8.69 | 1,885,703 | ||||||||||||||||||
Second
quarter 2009
|
19.73 | 10.91 | 721,893 | 20.90 | 12.41 | 2,481,110 | ||||||||||||||||||
Third
quarter 2009
|
32.91 | 16.49 | 744,936 | 29.68 | 16.30 | 1,966,653 | ||||||||||||||||||
Month
|
||||||||||||||||||||||||
May
2009
|
19.73 | 16.44 | 770,964 | 20.90 | 17.20 | 2,723,280 | ||||||||||||||||||
June
2009
|
18.72 | 15.03 | 622,545 | 18.19 | 14.97 | 2,436,248 | ||||||||||||||||||
July
2009
|
26.00 | 16.49 | 677,130 | 24.50 | 16.30 | 2,646,341 | ||||||||||||||||||
August
2009
|
31.73 | 24.59 | 822,751 | 29.68 | 22.75 | 1,699,690 | ||||||||||||||||||
September
2009
|
32.91 | 26.40 | 738,155 | 29.53 | 24.95 | 1,521,562 | ||||||||||||||||||
October
2009
|
36.60 | 28.49 | 1,350,094 | 31.27 | 25.50 | 2,125,000 | ||||||||||||||||||
November
2009 (through November 10,
2009)
|
33.90 | 29.83 | 942,867 | 28.44 | 25.88 | 1,922,383 |
Tenda
|
||||||||||||
BM&FBOVESPA
R$
per common share
|
||||||||||||
High
|
Low
|
Volume
|
||||||||||
Year
Ended
|
||||||||||||
December
31, 2007 (1)
|
10.80 | 6.9 | 8,540,738 | |||||||||
December
31, 2008
|
12.8 | 0.76 | 882,148 | |||||||||
Quarter
|
||||||||||||
First
quarter 2007
|
N/A | N/A | N/A | |||||||||
Second
quarter 2007
|
N/A | N/A | N/A | |||||||||
Third
quarter 2007
|
N/A | N/A | N/A | |||||||||
Fourth
quarter 2007
|
10.80 | 6.9 | 11,135,227 | |||||||||
First
quarter 2008
|
11.80 | 7.9 | 6,181,720 | |||||||||
Second
quarter 2008
|
12.80 | 7.9 | 7,028,743 | |||||||||
Third
quarter 2008
|
11.40 | 1.30 | 8,326,805 | |||||||||
Fourth
quarter 2008
|
1.51 | 0.76 | 1,586,578 | |||||||||
First
quarter 2009
|
1.90 | 1.26 | 1,815,661 | |||||||||
Second
quarter 2009
|
3.93 | 1.93 | 4,970,586 | |||||||||
Third
quarter 2009
|
5.50 | 3.46 | 11,049,473 | |||||||||
Month
|
||||||||||||
May
2009
|
3.93 | 3.31 | 6,659,404 | |||||||||
June
2009
|
3.80 | 3.30 | 3,134,550 | |||||||||
July
2009
|
4.68 | 3.46 | 8,234,639 | |||||||||
August
2009
|
5.50 | 4.29 | 11,860,384 | |||||||||
September
2009
|
5.35 | 4.70 | 13,187,437 | |||||||||
October
2009
|
6.07 | 4.79 | 13,868,979 | |||||||||
November
2009 (through November 10,
2009)
|
5.75 | 5.10 | 9,072,455 |
Year
|
Common
Shares
|
|
(per
share/in R$)
|
||
2008
|
0.20
|
|
2007
|
0.21
|
|
2006
|
0.10
|
|
2005
|
—
|
Year
|
Common
Shares
|
|
(per
share/in R$)*
|
||
2008
|
—
|
|
2007
|
—
|
|
2006
|
0.39
|
|
2005
|
—
|
Name
of Owner
|
Common
Shares
|
%
Common Shares
|
Total
Shares
|
%
Total Capital
|
||||||||||||
Gafisa
S.A.
|
240,391,470
|
60
|
240,391,470
|
60
|
||||||||||||
Directors
and Officers
|
85,496
|
—
|
85,496
|
—
|
Name
|
Number
of common shares owned
|
Percentage
of outstanding common shares
|
|||||||
EIP
Brazil Holdings, LLC (1)(2)
|
24,829,605 | 18.6 | |||||||
Morgan
Stanley (4)
|
10,174,334 | 7.6 | |||||||
Itaú
Unibanco S.A.
|
7,265,028 | 5.4 | |||||||
Directors
and Officers
|
1,232,472 | 0.9 |
(1)
|
Affiliate
of Equity International and Gary
Garrabrant.
|
(2)
|
Based
on information filed jointly by EIP Brazil Holdings, LLC (“EIP Brazil”),
EI Fund II, LP (“EI Fund II”), EI Fund II GP, LLC (“EI Fund II GP”), EI
Fund IV Pronto, LLC (“EI Pronto”), EI Fund IV, LP (“EI Fund IV”), EI Fund
IV GP, LLC
|
|
(“EI
Fund IV GP”) and Equity International, LLC (“EI”) with the SEC on October
20, 2008. 18,229,607 common shares are owned directly by EIP Brazil. EIP
Brazil is wholly owned by EGB Holdings, LLC, which is owned 99.9% by EI
Fund II. EI Fund II GP is the general partner of EI Fund II. EI Fund II
and EI Fund II GP may be deemed to have beneficial ownership of the shares
owned directly by EIP Brazil. 3,300,000 ADSs representing 6,600,000 common
shares are owned directly by EI Pronto. EI Pronto is wholly owned by EI
Fund IV and EI Fund IV GP is the general partner of EI Fund IV. EI Fund IV
and EI Fund IV GP may be deemed to have beneficial ownership of the shares
owned directly by EI Pronto. Each of EI Fund II GP and EI Fund IV GP is
indirectly wholly owned by EI and EI may be deemed to have beneficial
ownership of the shares owned directly by EIP Brazil and EI
Pronto.
|
(3)
|
Based
on information filed by Gafisa S.A. with the CVM on June 22, 2009 pursuant
to letter received by the custodian of Gafisa
shares.
|
(4)
|
Based
on information filed jointly by Morgan Stanley and Morgan Stanley
Investment Management Inc. with the SEC on February 17, 2009. The
securities being reported on by Morgan Stanley as a parent holding company
are owned, or may be deemed to be beneficially owned, by Morgan Stanley
Investment Management Inc., an investment adviser in accordance with Rule
13d−1(b)(1)(ii)(E) of the Securities Exchange Act, as amended. Morgan
Stanley Investment Management Inc. is a wholly-owned subsidiary of Morgan
Stanley.
|
Type
of Fee
|
Amount
|
|||
Filing
fees
|
$ | 2,800 | ||
Legal
fees
|
1,200,000 | |||
Accounting
fees and fees for valuation reports
|
5,700,000 | |||
Printing
costs
|
7,700 |
·
|
each
common share is entitled to one vote in the resolutions in the General
Shareholders’ Meeting;
|
·
|
mandatory
minimum dividend of 25% of the adjusted net
profit;
|
·
|
dissenting
shareholders who exercise their right to withdraw, pursuant to the terms
of the Brazilian Law No. 6,406/76, are entitled to refund of their
respective shares. In the case of Tenda’s shareholders, the
refund will based on the net worth value of the shares based on the last
balance sheet approved at a general meeting. In the case of
Gafisa’s shareholders, the refund will be based on the economic value of
Gafisa;
|
·
|
the
right to inspect and monitor the company’s management, in accordance with
the Brazilian corporate law;
|
·
|
preemptive
rights in the subscription of shares, convertible debentures and warrants,
except in certain circumstances under the Brazilian corporate law
described in “—Preemptive Rights”;
|
·
|
the
right to participate in the company’s remaining assets in proportion to
its equity interest in the company’s share capital in the event of
company’s liquidation;
|
·
|
in
the event of a transfer of control, the right to sell their shares under a
public offer to be conducted by the purchaser at the same price and
conditions applicable to shares comprising the controlling block, with due
observation to the provisions in the by-laws, the Brazilian corporate law
and the rules and regulations of the Novo Mercado;
and
|
·
|
if
the company is delisted from the Novo Mercado or in the event of the
cancellation of its registration as a publicly-held company: right to sell
its shares under a public offer to be conducted by the company or by the
controlling shareholder (as the case may be, pursuant to the terms of the
company’s bylaws) at a price at least equal to economic value of the
shares to be determined by appraisal, with due observation to the other
provisions of the company’s by-laws, the Brazilian corporate law and the
rules and regulations of the CVM.
|
·
|
R$39.0
million via the capitalization of all of the credits held by EDSP92
against Tenda; and
|
·
|
R$7
million in cash.
|
·
|
right
to participate in Tenda’s profit
distributions;
|
·
|
right
to participate in Tenda’s remaining assets in proportion to its equity
interest in Tenda’s share capital in the event of Tenda’s
liquidation;
|
·
|
preemptive
right to subscribe for Tenda’s common shares, convertible debentures and
warrants, except in certain circumstances under the Brazilian corporate
law described in “—Preemptive
Rights”;
|
·
|
right
to inspect and monitor Tenda’s management, in accordance with the
Brazilian corporate law;
|
·
|
right
to vote at shareholders’ meetings;
and
|
·
|
amendment
of Tenda’s bylaws;
|
·
|
election
or dismissal of Tenda’s board of directors or fiscal council, once
constituted;
|
·
|
approval
of management accounts and Tenda’s financial
statements;
|
·
|
issuance,
redemption or repurchase of Tenda’s securities (including derivatives
linked to Tenda’s securities);
|
·
|
authorization
of the issuance of convertible or secured debentures (except as set forth
in Article 59, Paragraph 1 of the Brazilian corporate
law);
|
·
|
approval
of the allocation of Tenda’s net income and the corresponding profits
distribution and payment of
dividends;
|
·
|
approval
of share splits;
|
·
|
approval
of a stock option plan or the subscription of shares by Tenda’s management
and employees;
|
·
|
suspension
of shareholders’ rights in the event of noncompliance with the Brazilian
corporate law or Tenda’s bylaws;
|
·
|
approval
of the appraisal of assets contributed by a shareholder in the
subscription of Tenda’s shares;
|
·
|
approval
of Tenda’s transformation into a limited liability company (sociedade limitada) or
into any other corporate form;
|
·
|
approval
of Tenda’s merger with another company (incorporação or fusão) or a spin-off
(cisão) of a
portion of Tenda’s assets or
liabilities;
|
·
|
approval
of Tenda’s dissolution or liquidation, and the appointment and dismissal
of the respective liquidator and approval of the reports prepared by such
liquidator;
|
·
|
approval
of a reduction in Tenda’s mandatory
dividend;
|
·
|
approval
of Tenda’s participation in a group of companies (as defined in the
Brazilian corporate law);
|
·
|
approval
to delist from the Novo
Mercado segment of the BM&FBOVESPA;
and
|
·
|
approval
of a specialist firm (among those identified by Tenda’s board of
directors) to prepare an appraisal report with respect to the value of
Tenda’s common shares in public offerings, as provided in Tenda’s bylaws
appointment.
|
·
|
reduce
the mandatory dividend;
|
·
|
change
Tenda’s corporate purpose;
|
·
|
spin-off;
|
·
|
merge
with another company;
|
·
|
approve
Tenda’s participation in a group of companies (as defined in the Brazilian
corporate law);
|
·
|
apply
for cancellation of any voluntary liquidation;
and
|
·
|
approve
Tenda’s dissolution.
|
·
|
any
shareholder, if Tenda’s board of directors fails to call a shareholders’
meeting within 60 days after the date they were required to do so under
applicable laws and Tenda’s bylaws;
|
·
|
shareholders
holding at least five percent of Tenda’s capital stock if Tenda’s board of
directors fails to call a meeting within eight days after receipt of a
justified request to call a meeting by those shareholders indicating the
proposed agenda;
|
·
|
shareholders
holding at least five percent of Tenda’s shares if Tenda’s board of
directors fails to call a meeting within eight days after receipt of a
request to call the meeting for the creation of the fiscal council;
and
|
·
|
Tenda’s
fiscal council, when constituted, if the board of directors fails to call
an annual shareholders’ meeting within 30 days after the mandatory date it
should have been called. The fiscal council may also call a special
shareholders’ meeting if it believes that there are important or urgent
matters to be addressed.
|
·
|
perform
any charitable act at Tenda’s expense, except for such reasonable
charitable acts for the benefit of Tenda’s employees or of the community
in which Tenda participate and is not detrimental to us, upon approval by
the board of directors;
|
·
|
receive,
by virtue of his or her position, any direct or indirect personal benefit
from third parties without authorization in Tenda’s bylaws or in a
shareholders’ meeting;
|
·
|
borrow
money or property from us or use Tenda’s property, services or credit for
his or her own benefit or for the benefit of a company or third party in
which he or she has an interest, without the prior approval at a
shareholders’ meeting or of Tenda’s board of
directors;
|
·
|
take
advantage of any commercial opportunity for his or her own benefit or for
the benefit of a third party at Tenda’s expense when he or she learned of
such opportunity through his or her position as a
director;
|
·
|
neglect
the protection of Tenda’s rights by failing to disclose a business
opportunity in Tenda’s interests with a view to exploiting the opportunity
for personal gain, or for the benefit of a third
party;
|
·
|
acquire,
in order to resell for profit, a good or right that is essential to
Tenda’s business operations, or that Tenda intend to acquire for
ourselves; and
|
·
|
take
part in a corporate transaction in which he or she has an interest that
conflicts with Tenda’s interests or in the deliberations undertaken by
Tenda’s directors on the matter.
|
·
|
a
spin-off (as described below);
|
·
|
a
reduction in the percentage of mandatory
dividends;
|
·
|
a
change in Tenda’s corporate
purpose;
|
·
|
a
change in Tenda’s corporate form;
|
·
|
a
merger of all of Tenda’s shares into another Brazilian corporation that
transforms us into a wholly owned subsidiary of such
corporation;
|
·
|
a
merger (fusão or
incorporação)
with another company (as described below);
and
|
·
|
Tenda’s
participation in a group of companies (as defined in the Brazilian
corporate law).
|
·
|
causes
a change in Tenda’s corporate purpose, except if the equity is spun off to
a company whose primary activities are consistent with Tenda’s corporate
purpose;
|
·
|
reduces
Tenda’s mandatory dividends; or
|
·
|
causes
us to join a group of companies (as defined in the Brazilian corporate
law).
|
·
|
persons
that are no longer members of Tenda’s management team are prohibited from
trading in Tenda’s securities before the disclosure of material
information relating to us that happened during their terms of office, and
the prohibition from trading Tenda’s securities is extended for a period
of six months as from the date on which such persons quit their
positions;
|
·
|
whenever
a procedure is ongoing for purchase or sale of Tenda’s shares by Tenda or
Tenda’s controlled or associated companies, or other companies that share
control with Tenda, or an option or mandate has been granted for the same
purpose, or there is an intention to merge us into another company or to
carry out Tenda’s total or partial spin-off, consolidation, transformation
or corporate reorganization;
|
·
|
during
the 15-day period before the disclosure of Tenda’s quarterly financial
information, or IFT, and annual financial information and statements, or
IAN, and standardized financial statements, or DFP, respectively, as
required by CVM; and
|
·
|
with
respect only to Gafisa, directors and officers, in the event of the
acquisition or sale of Tenda’s shares by Tenda or the acquisition or sale
of Tenda’s shares by any of Tenda’s controlled or associated companies or
any other company under Tenda’s common control or an option or mandate has
been granted for the same purpose.
|
·
|
result
in a decrease of Tenda’s capital;
|
·
|
require
the use of funds greater than Tenda’s accumulated profits and available
profit reserves, except for Tenda’s legal reserve, unrealized profit
reserve, contingency reserve and special, as stated in the last balance
sheet (as defined in the applicable
regulations);
|
·
|
create,
directly or indirectly, any demand, offer, or artificial subscription
price, or engage in any unjust practice relating from any particular act
or omission; or
|
·
|
be
used for the purchase of shares held by Tenda’s controlling
shareholder.
|
·
|
Tenda
must disclose its financial statements prepared at the end of each quarter
(except the last quarter) and at the end of each year, including a cash
flow statement, which should indicate, at a minimum, the changes in
Tenda’s cash and cash equivalents, divided into operational, finance and
investment cash flows for the relevant quarter or
year;
|
·
|
from
the date in which Tenda released its financial statements relating to the
second fiscal year following Tenda’s listing on the Novo Mercado Tenda
must, no later than four months after the end of the fiscal year: (1)
prepare Tenda’s annual financial statements and consolidated financial
statements, if applicable, in accordance with U.S. GAAP or IFRS, in reais or in U.S.
dollars, in the English language, together with (a) management reports,
(b) notes to the financial statements, including information on net income
and shareholders’ equity calculated at the end of such fiscal year in
accordance with Brazilian GAAP, as well as management proposals for
allocation of net profits, and (c) Tenda’s independent public accountants
report; or (2) disclose, in the English language, complete financial
statements, management reports and notes to the financial statements,
prepared in accordance with the Brazilian corporate law, accompanied by
(a) an additional explanatory note regarding the reconciliation of
year-end net income and shareholders’ equity calculated in accordance with
Brazilian GAAP and U.S. GAAP or IFRS, as the case may be, which must
include the main differences between the accounting principles used, and
(b) the independent public accountants’ report;
and
|
·
|
from
the date on which Tenda released its first financial statements prepared
as provided above, no later than 15 days following the term established by
law for the publication of quarterly financial information, Tenda must
disclose, in its entirety, its quarterly financial information translated
into the English language or disclose its financial statements and
consolidated financial statements in accordance with Brazilian GAAP, U.S.
GAAP or IFRS as provided above, accompanied by the independent public
accountants report.
|
·
|
Tenda’s
consolidated balance sheet, consolidated statement of income and a
discussion and analysis of Tenda’s consolidated performance, if Tenda are
obliged to disclose consolidated financial statements at
year-end;
|
·
|
any
direct or indirect ownership interest exceeding 5% of Tenda’s capital
stock, considering any ultimate individual beneficial
owner;
|
·
|
the
number and characteristics, on a consolidated basis, of Tenda’s shares
held by Gafisa, members of Tenda’s board of directors, board of executive
officers and fiscal council;
|
·
|
changes
in the numbers of Tenda’s shares held by Gafisa, members of Tenda’s board
of directors, board of executive officers and fiscal council in the
immediately preceding 12 months;
|
·
|
in
an explanatory note, Tenda’s cash flow statements, which should indicate
the cash flows in cash balance and cash equivalent, separated into
operating, finance and investments cash
flows;
|
·
|
the
number of free-float shares, and their percentage in relation to the total
number of issued shares; and
|
·
|
notification
that a binding arbitral clause is in
place.
|
·
|
information
relating to number and characteristics of Tenda’s shares directly or
indirectly held by Gafisa, members of Tenda’s board of directors, board of
executive officers and fiscal
council;
|
·
|
changes
in the number of shares held by such persons within the immediately
proceeding 12 months; and
|
·
|
establishment
of the arbitral clause.
|
·
|
financial
statements prepared in accordance with Brazilian GAAP and related
management and auditors’ reports, within three months from the end of the
fiscal year on the date on which they are published or made available to
shareholders, whichever occurs first, together with the
DFP;
|
·
|
notices
of Tenda’s annual shareholders’ meeting, on the same date as their
publication;
|
·
|
summary
of the decisions made at annual shareholders’ meetings, on the day
following their occurrence;
|
·
|
copy
of the minutes of the annual shareholders’ meetings, within ten days of
their occurrence;
|
·
|
IAN,
an annual report on standard form containing Tenda’s relevant corporate,
business and selected financial information, within one month from the
date of the annual shareholders’ meeting;
and
|
·
|
ITR,
a quarterly report on standard form containing Tenda’s relevant quarterly
corporate, business and financial information, together with a special
review report issued by Tenda’s independent public accountants, within 45
days form the end of each quarter (except for the last quarter of each
year) or upon disclosure of such information to shareholders or third
parties, whichever occurs first.
|
·
|
notice
of Tenda’s special shareholders’ meetings, on the same date as their
publication;
|
·
|
summary
of the decisions made in special shareholders’ meetings, on the day
following their occurrence;
|
·
|
minutes
of Tenda’s special shareholders meetings’, within ten days from its
occurrence;
|
·
|
a
copy of any shareholders’ agreement on the date on which it is filed with
us;
|
·
|
any
press release giving notice of material facts, on the same date it is
published in the press;
|
·
|
information
on any filing for corporate reorganization, the reason for such filing,
special financial statements prepared for obtaining a legal benefit, and,
if applicable, any plan for payment of holders of debentures, as well as
copies of any judicial decision granting such request, on the same date it
is filed and on the date Tenda take notice of
it;
|
·
|
information
on any bankruptcy filing, on the same day Tenda become aware of it, or the
filing of a judicial claim, as applicable;
and
|
·
|
a
copy of any judicial decision granting a bankruptcy request and
appointment of a bankruptcy trustee, on the date Tenda take notice of
it.
|
·
|
the
name and qualification of the person providing the
information;
|
·
|
the
issuer, amount, price, type and/or class, in the case of acquired shares,
or characteristics, in the case of securities;
and
|
·
|
the
form, price and date of the
transactions.
|
·
|
name
and identification of the person acquiring the
shares;
|
·
|
the
number, kind and class and other characteristics of the shares, warrants,
subscription rights, call options, and convertible debentures, if any
interest is already held by their acquirer or any related
person;
|
·
|
form
of acquisition (private transaction, trading on the stock exchange,
etc.);
|
·
|
the
reasons and purpose of the transaction;
and
|
·
|
information
regarding any agreement regulating the exercise of voting rights or the
purchase and sale of Tenda’s
securities.
|
·
|
Gafisa’s
Annual Report on Form 20-F for the fiscal year ended December 31, 2008,
filed with the SEC on June 5, 2009, except for the U.S. GAAP information
included in items 3A, 8A and 18, which has been adjusted to reflect the
retrospective adoption of the disclosure required by SFAS No. 160 and is
incorporated by reference from the Form 6-K filed by Gafisa with the SEC
on November 13, 2009 in this preliminary prospectus/ information
statement; and
|
·
|
any
future filings on Form 20-F by Gafisa made with the SEC under the Exchange
Act after the date of this preliminary prospectus/information statement
and prior to the completion of the Restructuring and any
|
|
future
filings on Form 6-K by Gafisa during such period that are identified in
such forms as being incorporated by reference into this preliminary
prospectus/information statement.
|
|
You may also contact the
information agent for the
Restructuring:
|
|
In
addition, if you are a holder of Gafisa ADSs, you may also
contact:
|
·
|
fulfills
all formalities required for its enforceability under the laws of the
country where the foreign judgment is
granted;
|
·
|
is
issued by a competent court after proper service of process is made or
sufficient evidence of our absence has been given as required under
applicable law;
|
·
|
has
been made res
judicata (i.e. final and not subject to
appeal);
|
·
|
is
authenticated by a Brazilian consular office in the country where the
foreign judgment is issued and is accompanied by a sworn translation into
Portuguese;
|
·
|
is
not contrary to Brazilian national sovereignty or public policy or “good
morals”; and
|
·
|
is
not equal to a proceeding in Brazil involving the same parties, based on
the same grounds and with the same object, which has already been judged
by a Brazilian court.
|
·
|
any
governmental license or regulatory permit that appears to be material to
the businesses of Gafisa or Tenda that might be adversely affected by the
Restructuring;
|
·
|
except
as described below, any approval or other action by any government or
governmental administrative or regulatory authority or agency, domestic or
foreign, that would be required for the completion of the Restructuring;
or
|
·
|
any
consent, waiver or other approval that would be required as a result of or
in connection with the Restructuring, including but not limited to, any
consents or other approvals under any licenses, concessions, permits and
agreements to which any of Gafisa or Tenda is a party that have not been
obtained.
|
Page
|
|
Index to
Consolidated Unaudited Interim Financial Statements as of September 30,
2009 and for the nine month periods ended September 30, 2009 and 2008 of
Gafisa S.A.
|
F-1
|
Index to
Consolidated Unaudited Interim Financial Statements as of September 30,
2009 and for the nine month periods ended September 30, 2009 and 2008 of
Construtora Tenda S.A.
|
F-78
|
Index to
Consolidated Financial Statements as of December 31, 2008 and 2007 and for
the years ended December 31, 2008, 2007 and 2006 of Construtora Tenda
S.A.
|
F-119
|
Page | |
Condensed
Consolidated Balance Sheets as of September 30, 2009 (unaudited) and
December 31, 2008
|
F-2
|
Condensed
Consolidated Unaudited Interim Statements of Income for the Nine-Month
Periods ended September 30, 2009 and 2008
|
F-4
|
Statement of
Changes in Shareholders’ Equity for the Nine-Month Period Ended September
30, 2009 (unaudited)
|
F-5
|
Condensed
Consolidated Unaudited Interim Statement of Cash Flows for the Nine-Month
Periods ended September 30, 2009 and 2008
|
F-6
|
Notes to the
Unaudited Condensed Consolidated Interim Financial Statements as of
September 30, 2009 and for the nine-month periods ended September 30, 2008
and 2008
|
F-7
|
Assets
|
Note
|
September
30, 2009
|
December
31, 2008
|
|||||||||
(Unaudited) | ||||||||||||
Current
assets
|
||||||||||||
Cash, cash equivalents and marketable
securities
|
4 | 948,350 | 528,574 | |||||||||
Restricted
cash in guarantee to loans
|
4 | 151,337 | 76,928 | |||||||||
Receivables from
clients
|
5 | 1,718,110 | 1,254,594 | |||||||||
Properties for sale
|
6 | 1,376,236 | 1,695,130 | |||||||||
Other accounts
receivable
|
7 | 93,722 | 182,775 | |||||||||
Deferred
taxes
|
15 | 13,099 | - | |||||||||
Deferred selling
expenses
|
7,205 | 13,304 | ||||||||||
Prepaid expenses
|
13,522 | 25,396 | ||||||||||
4,321,581 | 3,776,701 | |||||||||||
Non-current
assets
|
||||||||||||
Receivables from
clients
|
5 | 1,662,300 | 863,950 | |||||||||
Properties for sale
|
6 | 386,196 | 333,846 | |||||||||
Deferred taxes
|
15 | 250,846 | 190,252 | |||||||||
Escrow
deposits
|
- | 2,489 | 41,807 | |||||||||
Other accounts
receivable
|
7 | 49,651 | 68,799 | |||||||||
2,351,482 | 1,498,654 | |||||||||||
Goodwill,
net
|
8 | 195,088 | 195,088 | |||||||||
Property and
equipment, net
|
- | 53,698 | 50,348 | |||||||||
Intangible
assets
|
- | 9,690 | 18,067 | |||||||||
258,476 | 263,503 | |||||||||||
2,609,958 | 1,762,157 | |||||||||||
Total
assets
|
6,931,539 | 5,538,858 |
In thousands of Brazilian reais |
(continued)
|
Liabilities
and shareholders' equity
|
Note
|
September
30, 2009
|
December
31, 2008
|
|||||||||
(Unaudited) | ||||||||||||
Current
liabilities
|
||||||||||||
Loans and financing, net of
swaps
|
9 | 570,307 | 447,503 | |||||||||
Debentures
|
10 | 80,781 | 61,945 | |||||||||
Obligations for purchase of land and
advances from clients
|
13 | 488,935 | 421,584 | |||||||||
Materials and service
suppliers
|
- | 194,302 | 112,900 | |||||||||
Taxes and
contributions
|
- | 132,216 | 113,167 | |||||||||
Salaries, payroll charges and profit
sharing
|
- | 61,206 | 29,693 | |||||||||
Mandatory dividends
|
14 | (a) | 26,106 | 26,104 | ||||||||
Provision for
contingencies
|
12 | 10,512 | 17,567 | |||||||||
Deferred
taxes
|
15 | 52,375 | - | |||||||||
Other accounts payable
|
11 | 181,312 | 97,933 | |||||||||
1,798,052 | 1,328,396 | |||||||||||
Non-current
liabilities
|
||||||||||||
Loans and financing, net of
swaps
|
9 | 636,639 | 600,673 | |||||||||
Debentures
|
10 | 1,244,000 | 442,000 | |||||||||
Obligations for purchase of land and
advances from clients
|
13 | 147,168 | 231,199 | |||||||||
Deferred taxes
|
15 | 322,870 | 239,131 | |||||||||
Provision for
contingencies
|
12 | 59,509 | 35,963 | |||||||||
Deferred gain on sale of
investment
|
8 | (b) | 11,594 | 169,394 | ||||||||
Negative goodwill on acquisition of
subsidiaries
|
8 | (b) | 12,499 | 18,522 | ||||||||
Other accounts payable
|
11 | 362,843 | 389,759 | |||||||||
2,797,122 | 2,126,641 | |||||||||||
Noncontrolling
interests
|
552,889 | 471,402 | ||||||||||
Shareholders’
equity
|
14 | |||||||||||
Capital stock
|
1,233,897 | 1,229,517 | ||||||||||
Treasury shares
|
(18,050 | ) | (18,050 | ) | ||||||||
Capital reserves
|
190,584 | 182,125 | ||||||||||
Income reserves
|
218,827 | 218,827 | ||||||||||
Retained
earnings
|
158,218 | - | ||||||||||
1,783,476 | 1,612,419 | |||||||||||
Total
liabilities and shareholders' equity
|
6,931,539 | 5,538,858 |
Note
|
2009
|
2008
|
||||||||||
(Unaudited) | (Unaudited) | |||||||||||
Gross
operating revenue
|
||||||||||||
Real estate development and
sales
|
3 | (a) | 2,184,117 | 1,224,199 | ||||||||
Construction services rendered, net of
costs
|
30,352 | 13,201 | ||||||||||
Taxes on services and
revenues
|
(89,663 | ) | (44,841 | ) | ||||||||
Net
operating revenue
|
2,124,806 | 1,192,559 | ||||||||||
Operating
costs
|
||||||||||||
Real estate development
costs
|
(1,523,640 | ) | (814,201 | ) | ||||||||
Gross
profit
|
601,166 | 378,358 | ||||||||||
Operating
(expenses) income
|
||||||||||||
Selling expenses
|
(153,344 | ) | (87,504 | ) | ||||||||
General and administrative
expenses
|
(172,832 | ) | (104,990 | ) | ||||||||
Depreciation and
amortization
|
(24,166 | ) | (29,606 | ) | ||||||||
Amortization of gain on partial sale of
FIT Residential and other, net
|
157,800 | - | ||||||||||
Other, net
|
(79,094 | ) | (13,303 | ) | ||||||||
Operating
profit before financial income (expenses)
|
329,530 | 142,955 | ||||||||||
Financial
income (expenses)
|
||||||||||||
Financial expenses
|
(159,336 | ) | (24,272 | ) | ||||||||
Financial income
|
106,399 | 64,389 | ||||||||||
Income
before taxes on income and noncontrolling interests
|
276,593 | 183,072 | ||||||||||
Current income tax and social
contribution expense
|
(15,659 | ) | (13,639 | ) | ||||||||
Deferred tax
|
(49,245 | ) | (36,817 | ) | ||||||||
Total tax expenses
|
15 | (64,904 | ) | (50,456 | ) | |||||||
Income
before noncontrolling interests
|
211,689 | 132,616 | ||||||||||
Noncontrolling
interests
|
(53,471 | ) | (35,540 | ) | ||||||||
Net
income for the nine-month period
|
158,218 | 97,076 | ||||||||||
Outstanding
shares at the end of the period (in thousands)
|
14 | (a) | 130,508 | 129,963 | ||||||||
Net income
per thousand outstanding shares at the end of the
period - R$
|
1.2123 | 0.7469 |
Capital
reserves
|
Income
reserves
|
|||||||||||||||||||||||||||||||||||
Capital
stock
|
Treasury
shares
|
Stock
options reserve
|
Capital
reserves
|
Legal
reserve
|
Statutory
reserve
|
For
investments
|
Retained
earnings
|
Total
|
||||||||||||||||||||||||||||
At
December 31, 2008
|
1,229,517 | (18,050 | ) | 47,829 | 134,296 | 21,081 | 159,213 | 38,533 | - | 1,612,419 | ||||||||||||||||||||||||||
Capital
increase - exercise of stock options
|
4,380 | - | - | - | - | - | - | - | 4,380 | |||||||||||||||||||||||||||
Stock option plan
|
- | - | 8,459 | - | - | - | - | - | 8,459 | |||||||||||||||||||||||||||
Net income for the
period
|
- | - | - | - | - | - | - | 158,218 | 158,218 | |||||||||||||||||||||||||||
At
September 30, 2009 (unaudited)
|
1,233,897 | (18,050 | ) | 56,288 | 134,296 | 21,081 | 159,213 | 38,533 | 158,218 | 1,783,476 |
2009
|
2008
|
|||||||
(Unaudited ) | (Unaudited ) | |||||||
Cash
flows from operating activities
|
||||||||
Net income
|
158,218 | 97,076 | ||||||
Expenses (income) not affecting cash and
cash equivalents
|
||||||||
Depreciation and
amortization
|
30,189 | 30,253 | ||||||
Goodwill
/ Negative goodwill amortization
|
(6,023 | ) | (647 | ) | ||||
Disposal of fixed
assets
|
4,980 | - | ||||||
Stock option expenses
|
15,062 | 16,550 | ||||||
Deferred gain on sale of
investment
|
(157,800 | ) | - | |||||
Unrealized interest and charges,
net
|
123,347 | 86,114 | ||||||
Deferred tax
|
49,245 | 36,082 | ||||||
Noncontrolling
interests
|
39,919 | 30,768 | ||||||
Decrease (increase) in
assets
|
||||||||
Receivables from
clients
|
(1,261,866 | ) | (590,489 | ) | ||||
Properties for sale
|
266,545 | (517,440 | ) | |||||
Other accounts
receivable
|
57,759 | (114,676 | ) | |||||
Deferred selling
expenses
|
223 | 117 | ||||||
Prepaid expenses
|
8,889 | (11,668 | ) | |||||
Increase (decrease) in
liabilities
|
||||||||
Obligations for purchase of
land
|
(94,395 | ) | 337,694 | |||||
Taxes and contributions
|
31,595 | 30,472 | ||||||
Provision for
contingencies
|
62,610 | 2,270 | ||||||
Materials and service
suppliers
|
81,602 | 13,860 | ||||||
Advances from clients
|
76,637 | (38,631 | ) | |||||
Salaries, payroll charges and profit
sharing
|
31,518 | (14,236 | ) | |||||
Other accounts payable
|
35,829 | (13,880 | ) | |||||
Cash
used in operating activities
|
(445,917 | ) | (620,411 | ) | ||||
Cash
flows from investing activities
|
||||||||
Property and equipment
|
(34,999 | ) | (32,714 | ) | ||||
Restricted cash in guarantee to
loans
|
(74,409 | ) | - | |||||
Cash
used in investing activities
|
(109,408 | ) | (32,714 | ) | ||||
Cash
flows from financing activities
|
||||||||
Capital increase
|
4,380 | 7,672 | ||||||
Loans and financing
obtained
|
1,418,227 | 692,663 | ||||||
Repayment of loans and
financing
|
(567,655 | ) | (102,695 | ) | ||||
Contributions from venture
partners
|
- | 300,000 | ||||||
Assignment of credits,
net
|
860 | 42,463 | ||||||
Proceeds
from subscription of redeemable equity interest in
securitization
|
49,973 | - | ||||||
Assignment of
credits receivable - CCI
|
69,316 | - | ||||||
Dividends
paid
|
- | (26,970 | ) | |||||
Cash
provided by financing activities
|
975,101 | 913,133 | ||||||
Net
increase in cash and cash equivalents
|
419,776 | 260,008 | ||||||
Cash and cash equivalents (net of
restricted cash in guarantee to loans)
|
||||||||
At the beginning of the
period
|
528,574 | 517,420 | ||||||
At the end of the
period
|
948,350 | 777,428 | ||||||
Net
increase in cash and cash equivalents
|
419,776 | 260,008 |
1
|
Operations
|
2
|
Presentation
of the nine-month period
Information
|
(a)
|
Basis
of presentation
|
(Unaudited)
|
||||
As originally
reported
|
139,781 | |||
Adjustment to present value of assets
and liabilities
|
4,418 | |||
Stock option plans
|
(16,550 | ) | ||
Warranty provision
|
(3,494 | ) | ||
Depreciation of sales stands,
facilities, model apartments and related furnishings
|
(9,334 | ) | ||
Noncontrolling interest
|
(8,018 | ) | ||
Other, including deferred
taxes
|
(9,727 | ) | ||
As presented
herein
|
97,076 |
(b)
|
Use
of estimates
|
(c)
|
Consolidation
principles
|
3
|
Significant
Accounting Practices
|
(a)
|
Recognition
of results
|
(i)
|
Real
estate development and sales
|
.
|
The incurred
cost (including the costs related to land) corresponding to the units sold
is fully appropriated to the
result.
|
.
|
The
percentage of incurred cost (including costs related to land) is measured
in relation to total estimated cost, and this percentage is applied on the
revenues from units sold, determined in accordance with the terms
established in the sales contracts, thus determining the amount of
revenues and selling expenses to be
recognized.
|
.
|
Any amount of
revenues recognized that exceeds the amount received from clients is
recorded as current or non-current assets. Any amount received in
connection with the sale of units that exceeds the amount of revenues
recognized is recorded as "Obligations for purchase of land and advances
from clients".
|
.
|
Interest and
inflation-indexation charges on accounts receivable as from the time the
client takes possession of the property, as well as the adjustment to
present value of accounts receivable, are appropriated to the result from
the development and sale of real estate using the accrual basis of
accounting.
|
.
|
The financial
charges on accounts payable for the acquisition of land and real estate
credit operations during the construction period are appropriated to the
cost incurred, and recognized in results upon the sale of the units of the
venture to which they are directly
related.
|
(ii)
|
Construction
services
|
(iii)
|
Revenues
and costs related to barter
transactions
|
(b)
|
Cash
and cash equivalents
|
(c)
|
Receivables
from clients
|
(d)
|
Certificates
of real estate receivables (CRI)
|
(e)
|
Investment
Fund of Receivables ("FIDC”)
|
(f)
|
Real
estate credit certificate (“CCI”)
|
(g)
|
Properties
for sale
|
(h)
|
Deferred
selling expenses
|
(i)
|
Warranty
provision
|
(j)
|
Prepaid
expenses
|
(k)
|
Property
and equipment
|
(l)
|
Intangible
assets
|
(m)
|
Investments
in subsidiaries and jointly-controlled
investees
|
(i)
|
Net
equity value
|
(ii)
|
Goodwill
and negative goodwill on the acquisition of
investments
|
(n)
|
Obligations
for purchase of land and advances from clients (barter
transactions)
|
(o)
|
Selling
expenses
|
(p)
|
Taxes
on income
|
(q)
|
Other
current and non-current liabilities
|
(r)
|
Stock
option plans
|
(s)
|
Profit
sharing program for employees and
officers
|
(t)
|
Present
value adjustment
|
(u)
|
Cross-currency
interest rate swap and derivative
transactions
|
(v)
|
Financial
liabilities recorded at fair value
|
(w)
|
Impairment
of financial assets
|
(x)
|
Debenture
and initial public offering
expenses
|
(y)
|
Earnings
per share
|
4
|
Cash,
Cash Equivalents and Marketable
Securities
|
September
30, 2009
|
December
31, 2008
|
|||||||
(Unaudited ) | ||||||||
Cash and cash
equivalents
|
||||||||
Cash and banks
|
215,133 | 73,538 | ||||||
Cash equivalents
|
||||||||
Bank Certificates of Deposits –
CDBs
|
490,491 | 185,334 | ||||||
Investment funds
|
161,125 | 149,772 | ||||||
Securities purchased under agreement
to resell
|
81,601 | 114,286 | ||||||
Other
|
- | 5,644 | ||||||
Total cash
and cash equivalents
|
948,350 | 528,574 | ||||||
Restricted
cash in guarantee to loans (Note 9)
|
151,337 | 76,928 | ||||||
Total cash,
cash equivalents and financial investments
|
1,099,687 | 605,502 |
5
|
Receivables
from clients
|
September
30, 2009
|
December
31, 2008
|
|||||||
(Unaudited ) | ||||||||
Real state
development and sales
|
3,369,569 | 2,115,498 | ||||||
(-)
Adjustment to present value
|
(79,942 | ) | (51,929 | ) | ||||
Services and
construction
|
79,511 | 54,096 | ||||||
Other
receivables
|
11,272 | 879 | ||||||
3,380,410 | 2,118,544 | |||||||
Current
|
1,718,110 | 1,254,594 | ||||||
Non-current
|
1,662,300 | 863,950 |
6
|
Properties
for sale
|
September
30, 2009
|
December
31, 2008
|
|||||||
(Unaudited ) | ||||||||
Land
|
767,990 | 745,850 | ||||||
Property
under construction
|
827,042 | 1,181,930 | ||||||
Completed
units
|
148,507 | 96,491 | ||||||
Adjustment to
present value
|
18,893 | 4,705 | ||||||
1,762,432 | 2,028,976 | |||||||
Current
portion
|
1,376,236 | 1,695,130 | ||||||
Non-current
portion
|
386,196 | 333,846 |
7
|
Other
accounts receivable
|
September
30, 2009
|
December
31, 2008
|
|||||||
(Unaudited ) | ||||||||
Current
accounts related to real estate ventures (*)
|
8,249 | 107,982 | ||||||
Advances to
suppliers
|
49,519 | 58,274 | ||||||
Recoverable
taxes
|
32,888 | 18,905 | ||||||
Deferred PIS
and COFINS
|
2,773 | 11,213 | ||||||
Credit
assignment receivables
|
4,087 | 7,990 | ||||||
Client
refinancing to be released
|
5,266 | 4,392 | ||||||
Advances for
future capital increase
|
- | 1,645 | ||||||
Other
|
40,591 | 41,173 | ||||||
143,373 | 251,574 | |||||||
Current
|
93,722 | 182,775 | ||||||
Non-current
|
49,651 | 68,799 |
(*)
|
The Company
participates in the development of real estate ventures with other
partners, directly or through related parties, through condominiums and/or
consortia. The management structure of these enterprises and the cash
management are centralized in the lead partner of the enterprise, which
manages the construction schedule and budgets. Thus, the lead partner
ensures that the investments of the necessary funds are made and allocated
as planned. The sources and use of resources of the venture are reflected
in these balances, observing the respective participation percentage,
which are not subject to indexation or financial charges and do not have a
predetermined maturity date. The average term for the development and
completion of the projects in which the resources are invested is between
24 and 30 months.
|
8
|
Investments
in subsidiaries
|
(a)
|
Ownership
interests
|
(i)
|
Information
on investees
|
Interest
- %
|
3
|
Shareholders’
Equity
|
4
|
Net
Income (Loss)
|
5
|
||||||||
Investees
|
September
30, 2009
|
December
31, 2008
|
September
30, 2009
|
December
31, 2008
|
September
30, 2009
|
September
30, 2008
|
|||||||
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
||||||
Tenda
|
60.00
|
60.00
|
1,121,372
|
1,062,213
|
55,711
|
-
|
|||||||
Fit
Residencial
|
-
|
-
|
-
|
-
|
-
|
(5,892)
|
|||||||
Bairro
Novo
|
-
|
50.00
|
-
|
8,164
|
-
|
(13,338)
|
|||||||
AUSA
|
60.00
|
60.00
|
89,346
|
69,211
|
19,359
|
41,691
|
|||||||
Cipesa
Holding
|
70.00
|
100.00
|
42,518
|
62,157
|
(992)
|
(1,047)
|
|||||||
Península
SPE1 S.A.
|
50.00
|
6
|
50.00
|
7
|
(4,698)
|
8
|
(1,139
|
)
|
(3,009)
|
9
|
858
|
10
|
|
Península
SPE2 S.A.
|
50.00
|
11
|
50.00
|
12
|
180
|
13
|
98
|
14
|
82
|
15
|
879
|
16
|
|
Res. das
Palmeiras SPE Ltda.
|
100.00
|
17
|
100.00
|
18
|
2,296
|
19
|
2,545
|
20
|
6
|
21
|
169
|
22
|
|
Gafisa SPE 27
Ltda
|
100.00
|
23
|
-
|
24
|
13,561
|
25
|
-
|
26
|
(1,331)
|
27
|
-
|
28
|
Interest
- %
|
3
|
Shareholders’
Equity
|
4
|
Net
Income (Loss)
|
5
|
||||||||
Investees
|
September
30, 2009
|
December
31, 2008
|
September
30, 2009
|
December
31, 2008
|
September
30, 2009
|
September
30, 2008
|
|||||||
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
||||||
Gafisa SPE 28
Ltda
|
100.00
|
29
|
-
|
30
|
(3,388)
|
-
|
(1,683)
|
-
|
|||||
Gafisa SPE 30
Ltda
|
100.00
|
31
|
-
|
32
|
17,816
|
33
|
-
|
34
|
(747)
|
35
|
-
|
36
|
|
Gafisa SPE 31
Ltda
|
100.00
|
37
|
-
|
38
|
26,880
|
39
|
-
|
40
|
(553)
|
41
|
-
|
42
|
|
Gafisa SPE 35
Ltda
|
100.00
|
43
|
-
|
44
|
5,334
|
45
|
-
|
46
|
(1,334)
|
-
|
|||
Gafisa SPE 36
Ltda
|
100.00
|
47
|
-
|
48
|
3,841
|
49
|
-
|
50
|
(1,454)
|
51
|
-
|
52
|
|
Gafisa SPE 37
Ltda
|
100.00
|
53
|
-
|
54
|
3,760
|
55
|
-
|
56
|
(400)
|
57
|
-
|
58
|
|
Gafisa SPE 38
Ltda
|
100.00
|
59
|
-
|
60
|
7,421
|
61
|
-
|
62
|
595
|
63
|
-
|
||
Gafisa SPE 39
Ltda
|
100.00
|
-
|
7,658
|
-
|
1,314
|
-
|
|||||||
Gafisa SPE 41
Ltda
|
100.00
|
-
|
29,298
|
-
|
(5,178)
|
-
|
|||||||
Villagio
Trust
|
50.00
|
-
|
4,239
|
-
|
(616)
|
-
|
|||||||
Gafisa SPE 40
Ltda.
|
50.00
|
50.00
|
5,789
|
5,841
|
237
|
1,535
|
|||||||
Gafisa SPE 42
Ltda.
|
100.00
|
64
|
50.00
|
65
|
12,358
|
66
|
6,997
|
67
|
2,357
|
68
|
6,990
|
69
|
|
Gafisa SPE 44
Ltda.
|
40.00
|
70
|
40.00
|
71
|
3,590
|
72
|
(377
|
)
|
(150)
|
73
|
(157)
|
74
|
|
Gafisa SPE 45
Ltda.
|
100.00
|
75
|
99.80
|
76
|
453
|
77
|
1,058
|
78
|
(1,570)
|
79
|
(4,078)
|
80
|
|
Gafisa SPE 46
Ltda.
|
60.00
|
81
|
60.00
|
82
|
5,946
|
83
|
5,498
|
84
|
(1,713)
|
85
|
3,605
|
86
|
|
Gafisa SPE 47
Ltda.
|
80.00
|
87
|
80.00
|
88
|
16,673
|
89
|
6,639
|
90
|
(255)
|
91
|
(181)
|
92
|
|
Gafisa SPE 48
Ltda.
|
100.00
|
93
|
99.80
|
94
|
-
|
95
|
21,656
|
96
|
1,674
|
97
|
3,745
|
98
|
|
Gafisa SPE 49
Ltda.
|
100.00
|
99
|
99.80
|
100
|
206
|
101
|
(58
|
)
|
(3)
|
102
|
(11)
|
103
|
|
Gafisa SPE 53
Ltda.
|
80.00
|
104
|
60.00
|
105
|
4,839
|
106
|
2,769
|
107
|
1,847
|
108
|
2,449
|
109
|
|
Gafisa SPE 55
Ltda.
|
100.00
|
110
|
99.80
|
-
|
20,540
|
2,776
|
(2,830)
|
||||||
Gafisa SPE 65
Ltda.
|
80.00
|
111
|
70.00
|
112
|
3,452
|
113
|
(281
|
)
|
605
|
114
|
(346)
|
115
|
|
Gafisa SPE 68
Ltda.
|
100.00
|
116
|
99.80
|
117
|
-
|
118
|
-
|
119
|
(92)
|
120
|
(1)
|
121
|
|
Gafisa SPE 72
Ltda.
|
80.00
|
122
|
60.00
|
123
|
1,189
|
(22
|
)
|
(238)
|
(31)
|
||||
Gafisa SPE 73
Ltda.
|
80.00
|
124
|
70.00
|
125
|
3,556
|
126
|
(155
|
)
|
(52)
|
127
|
(203)
|
128
|
|
Gafisa SPE 74
Ltda.
|
100.00
|
129
|
99.80
|
130
|
(342)
|
131
|
(330
|
)
|
(13)
|
132
|
(245)
|
133
|
|
Gafisa SPE 59
Ltda.
|
100.00
|
134
|
99.80
|
135
|
(5)
|
136
|
(2
|
)
|
(3)
|
137
|
-
|
138
|
|
Gafisa SPE 76
Ltda.
|
50.00
|
139
|
99.80
|
140
|
84
|
141
|
-
|
142
|
(1)
|
143
|
(1)
|
144
|
|
Gafisa SPE 78
Ltda.
|
100.00
|
145
|
99.80
|
146
|
-
|
147
|
-
|
148
|
-
|
149
|
(1)
|
||
Gafisa SPE 79
Ltda.
|
100.00
|
150
|
99.80
|
151
|
(2)
|
152
|
(1
|
)
|
(2)
|
153
|
(1)
|
154
|
|
Gafisa SPE 75
Ltda.
|
100.00
|
155
|
99.80
|
156
|
(72)
|
157
|
(27
|
)
|
(45)
|
158
|
-
|
159
|
|
Gafisa SPE 80
Ltda.
|
100.00
|
160
|
99.80
|
161
|
(2)
|
162
|
-
|
(2)
|
(1)
|
||||
Gafisa SPE-85
Empr. Imob.
|
80.00
|
163
|
60.00
|
164
|
5,609
|
165
|
(756
|
)
|
3,304
|
166
|
-
|
167
|
|
Gafisa SPE-86
Ltda.
|
-
|
168
|
99.80
|
169
|
-
|
170
|
(82
|
)
|
(228)
|
171
|
-
|
172
|
|
Gafisa SPE-81
Ltda.
|
100.00
|
173
|
99.80
|
174
|
1
|
175
|
1
|
176
|
-
|
-
|
|||
Gafisa SPE-82
Ltda.
|
100.00
|
177
|
99.80
|
178
|
1
|
179
|
1
|
180
|
-
|
181
|
-
|
182
|
|
Gafisa SPE-83
Ltda.
|
100.00
|
183
|
99.80
|
184
|
1
|
185
|
1
|
186
|
-
|
187
|
-
|
188
|
|
Gafisa SPE-87
Ltda.
|
100.00
|
189
|
99.80
|
190
|
201
|
191
|
1
|
192
|
-
|
193
|
-
|
194
|
|
Gafisa SPE-88
Ltda.
|
100.00
|
195
|
99.80
|
196
|
5,660
|
197
|
1
|
198
|
3,865
|
199
|
-
|
200
|
|
Gafisa SPE-89
Ltda.
|
100.00
|
201
|
99.80
|
202
|
34,151
|
203
|
1
|
204
|
6,316
|
205
|
-
|
206
|
|
Gafisa SPE-90
Ltda.
|
100.00
|
207
|
99.80
|
208
|
1
|
1
|
-
|
-
|
|||||
Gafisa SPE-84
Ltda.
|
100.00
|
99.80
|
10,477
|
1
|
2,871
|
-
|
|||||||
Dv Bv SPE
S.A.
|
50.00
|
50.00
|
464
|
(439
|
)
|
903
|
889
|
||||||
DV SPE
S.A.
|
50.00
|
50.00
|
1,871
|
932
|
939
|
(172)
|
|||||||
Gafisa SPE 22
Ltda.
|
100.00
|
209
|
100.00
|
210
|
5,934
|
211
|
5,446
|
212
|
488
|
213
|
1,151
|
214
|
|
Gafisa SPE 29
Ltda.
|
70.00
|
215
|
70.00
|
216
|
(210)
|
217
|
257
|
218
|
(317)
|
219
|
345
|
220
|
|
Gafisa SPE 32
Ltda.
|
80.00
|
221
|
80.00
|
4,903
|
(760
|
)
|
584
|
(185)
|
|||||
Gafisa SPE 69
Ltda.
|
100.00
|
222
|
99.80
|
223
|
1,893
|
224
|
(401
|
)
|
(247)
|
225
|
(4)
|
226
|
|
Gafisa SPE 70
Ltda.
|
55.00
|
227
|
55.00
|
228
|
12,685
|
229
|
6,696
|
230
|
(63)
|
231
|
(1)
|
232
|
|
Gafisa SPE 71
Ltda.
|
80.00
|
233
|
70.00
|
2,765
|
(794
|
)
|
1,776
|
(747)
|
|||||
Gafisa SPE 50
Ltda.
|
80.00
|
234
|
80.00
|
235
|
10,359
|
236
|
7,240
|
237
|
3,354
|
238
|
1,367
|
239
|
|
Gafisa SPE 51
Ltda.
|
95.00
|
240
|
90.00
|
241
|
-
|
242
|
15,669
|
243
|
8,096
|
244
|
6,112
|
245
|
Interest
- %
|
3
|
Shareholders’
Equity
|
4
|
Net
Income (Loss)
|
5
|
||||||||
Investees
|
September
30, 2009
|
December
31, 2008
|
September
30, 2009
|
December
31, 2008
|
September
30, 2009
|
September
30, 2008
|
|||||||
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
||||||
Gafisa SPE 61
Ltda.
|
100.00
|
246
|
99.80
|
247
|
(18)
|
248
|
(14
|
)
|
(3)
|
249
|
(14)
|
250
|
|
Tiner Empr. e
Part. Ltda.
|
45.00
|
251
|
45.00
|
252
|
15,629
|
253
|
26,736
|
254
|
(893)
|
255
|
11,761
|
256
|
|
O Bosque
Empr. Imob. Ltda.
|
60.00
|
257
|
30.00
|
258
|
8,761
|
259
|
15,854
|
260
|
(811)
|
261
|
-
|
262
|
|
Alta
Vistta
|
50.00
|
263
|
50.00
|
264
|
(2,452)
|
265
|
3,428
|
266
|
(5,881)
|
267
|
2,535
|
268
|
|
Dep. José
Lages
|
50.00
|
269
|
50.00
|
270
|
651
|
34
|
767
|
161
|
|||||
Sitio
Jatiuca
|
50.00
|
50.00
|
9,088
|
1,259
|
7,829
|
2,517
|
|||||||
Spazio
Natura
|
50.00
|
50.00
|
1,400
|
1,400
|
(1)
|
(20)
|
|||||||
Parque
Águas
|
50.00
|
50.00
|
(190)
|
(1,661
|
)
|
438
|
(1,214)
|
||||||
Parque
Arvores
|
50.00
|
271
|
50.00
|
272
|
363
|
273
|
(1,906
|
)
|
1,266
|
274
|
(1,081)
|
275
|
|
Dubai
Residencial
|
50.00
|
276
|
50.00
|
277
|
8,017
|
278
|
5,374
|
279
|
683
|
280
|
(229)
|
281
|
|
Cara de
Cão
|
-
|
282
|
65.00
|
283
|
-
|
284
|
40,959
|
-
|
-
|
||||
Costa
Maggiore
|
50.00
|
285
|
50.00
|
286
|
3,302
|
287
|
3,892
|
288
|
1,374
|
289
|
3,430
|
290
|
|
Gafisa SPE-91
Ltda.
|
100.00
|
291
|
-
|
292
|
1
|
293
|
-
|
294
|
-
|
295
|
-
|
296
|
|
Gafisa SPE-92
Ltda.
|
100.00
|
297
|
-
|
298
|
(107)
|
299
|
-
|
300
|
(108)
|
-
|
|||
Gafisa SPE-93
Ltda.
|
100.00
|
301
|
-
|
302
|
(26)
|
303
|
-
|
304
|
(27)
|
305
|
-
|
306
|
|
Gafisa SPE-94
Ltda.
|
100.00
|
307
|
-
|
308
|
(1)
|
309
|
-
|
310
|
(2)
|
311
|
-
|
312
|
|
Gafisa SPE-95
Ltda.
|
100.00
|
313
|
-
|
314
|
(3)
|
315
|
-
|
316
|
(4)
|
317
|
-
|
318
|
|
Gafisa SPE-96
Ltda.
|
100.00
|
319
|
-
|
320
|
(63)
|
321
|
-
|
322
|
(64)
|
323
|
-
|
324
|
|
Gafisa SPE-97
Ltda.
|
100.00
|
325
|
-
|
326
|
2
|
327
|
-
|
328
|
1
|
329
|
-
|
330
|
|
Gafisa SPE-98
Ltda.
|
100.00
|
331
|
-
|
332
|
(38)
|
333
|
-
|
334
|
(39)
|
335
|
-
|
336
|
|
Gafisa SPE-99
Ltda.
|
100.00
|
337
|
-
|
338
|
(25)
|
339
|
-
|
340
|
(26)
|
341
|
-
|
342
|
|
Gafisa
SPE-100 Ltda.
|
100.00
|
343
|
-
|
344
|
1
|
345
|
-
|
346
|
-
|
347
|
-
|
348
|
|
Gafisa
SPE-101 Ltda.
|
100.00
|
349
|
-
|
350
|
1
|
351
|
-
|
352
|
-
|
353
|
-
|
354
|
|
Gafisa
SPE-102 Ltda.
|
100.00
|
355
|
-
|
356
|
1
|
357
|
-
|
358
|
-
|
359
|
-
|
360
|
|
Gafisa
SPE-103 Ltda.
|
100.00
|
361
|
-
|
362
|
(43)
|
363
|
-
|
364
|
(44)
|
365
|
-
|
366
|
|
Gafisa
SPE-104 Ltda.
|
100.00
|
367
|
-
|
368
|
1
|
369
|
-
|
370
|
-
|
371
|
-
|
372
|
|
Gafisa
SPE-105 Ltda.
|
100.00
|
373
|
-
|
374
|
1
|
375
|
-
|
376
|
-
|
377
|
-
|
378
|
|
Gafisa
SPE-106 Ltda.
|
100.00
|
379
|
-
|
380
|
1
|
381
|
-
|
382
|
-
|
383
|
-
|
384
|
|
Gafisa
SPE-107 Ltda.
|
100.00
|
385
|
-
|
386
|
1
|
387
|
-
|
388
|
-
|
389
|
-
|
390
|
|
Gafisa
SPE-108 Ltda.
|
100.00
|
391
|
-
|
392
|
1
|
393
|
-
|
394
|
-
|
395
|
-
|
396
|
|
Gafisa
SPE-109 Ltda.
|
100.00
|
397
|
-
|
398
|
1
|
399
|
-
|
400
|
-
|
401
|
-
|
402
|
|
Gafisa
SPE-110 Ltda.
|
100.00
|
403
|
-
|
404
|
1
|
405
|
-
|
406
|
-
|
407
|
-
|
408
|
|
Gafisa
SPE-111 Ltda.
|
100.00
|
-
|
1
|
-
|
-
|
-
|
|||||||
Gafisa
SPE-112 Ltda.
|
100.00
|
-
|
1
|
-
|
-
|
-
|
|||||||
Gafisa
SPE-113 Ltda.
|
100.00
|
-
|
1
|
-
|
-
|
-
|
|||||||
City Park
Brotas Emp. Imob. Ltda
|
50.00
|
-
|
846
|
-
|
826
|
-
|
|||||||
City Park
Acupe Emp. Imob. Ltda
|
50.00
|
-
|
1,309
|
-
|
809
|
-
|
|||||||
Gafisa
FDIC
|
100.00
|
-
|
14,041
|
-
|
-
|
-
|
(b)
|
Goodwill
(negative goodwill) on acquisition of subsidiaries and deferred gain on
partial sale of investments
|
September
30, 2009 (Unaudited)
|
December
31, 2008
|
|||||||||||||||
Accumulated
|
||||||||||||||||
Cost
|
amortization
|
Net
|
Net
|
|||||||||||||
Goodwill
|
||||||||||||||||
Alphaville
|
170,941 | (18,085 | ) | 152,856 | 152,856 | |||||||||||
Nova Cipesa
|
40,686 | - | 40,686 | 40,686 | ||||||||||||
Other
|
3,741 | (2,195 | ) | 1,546 | 1,546 | |||||||||||
215,368 | (20,280 | ) | 195,088 | 195,088 | ||||||||||||
Negative
goodwill
|
||||||||||||||||
Redevco
|
(32,222 | ) | 19,723 | (12,499 | ) | (18,522 | ) | |||||||||
Deferred
gain on partial sale
of
FIT Residencial investment
|
||||||||||||||||
Tenda transaction
|
(210,402 | ) | 198,808 | (11,594 | ) | (169,394 | ) |
9
|
Loans
and Financing, net of Cross-Currency Interest Rate
Swaps
|
Type
of operation
|
Annual
interest rates
|
September
30, 2009
|
December
31, 2008
|
|||||||||
(Unaudited)
|
||||||||||||
Working
capital
|
||||||||||||
Denominated in Yen (i)
|
1.4%
|
131,305 | 166,818 | |||||||||
Swaps - Yen/CDI (ii)
|
Yen +
1.4%/105% CDI
|
(7,296 | ) | (53,790 | ) | |||||||
Denominated in
US$ (i)
|
7%
|
146,739 | ||||||||||
Swaps - US$/CDI (ii)
|
US$ +
7%/104% CDI
|
- | (32,962 | ) | ||||||||
Other
|
0.66% to
3.29% + CDI
|
608,118 | 435,730 | |||||||||
732,127 | 662,535 | |||||||||||
National
Housing System – SFH (iv)
|
TR + 6.2% to
11.4%
|
473,615 | 372,255 | |||||||||
Downstream
merger obligations (iii)
|
TR + 10% to
12.0%
|
- | 8,810 | |||||||||
Other
|
TR+
6.2%
|
1,204 | 4,576 | |||||||||
1,206,946 | 1,048,176 | |||||||||||
Current
portion
|
570,307 | 447,503 | ||||||||||
Non-current
portion
|
636,639 | 600,673 |
|
.
|
CDI –
Interbank Deposit Certificate.
|
|
.
|
TR –
Referential Rate.
|
September
30, 2009
|
||
(Unaudited)
|
||
2009
|
193,736
|
|
2010
|
527,583
|
|
2011
|
384,820
|
|
2012
|
66,933
|
|
2013
|
33,874
|
|
1,206,946
|
September
30, 2009
|
September
30, 2008
|
|||||||
(Unaudited)
|
(Unaudited)
|
|||||||
Gross
financial charges
|
85,190 | 29,731 | ||||||
Capitalized
financial charges
|
(21,078 | ) | (13,683 | ) | ||||
Net financial
charges
|
64,112 | 16,048 | ||||||
Financial
charges included in Properties for sale
|
||||||||
Opening
balance
|
97,238 | 59,764 | ||||||
Capitalized
financial charges
|
21,078 | 13,683 | ||||||
Charges
appropriated to income
|
(21,805 | ) | (6,327 | ) | ||||
Closing
balance
|
96,511 | 67,120 |
10
|
Debentures
|
Program/issuances
|
Amount
|
Annual
remuneration
|
Maturity
|
September
30, 2009
|
December
31, 2008
|
||||||
(Unaudited)
|
|
||||||||||
Second
program/first issuance
|
240,000
|
CDI +
3.25%
|
September
2011
|
192,449
|
248,679
|
||||||
Third
program/first issuance
|
250,000
|
107.20%
CDI
|
June
2018
|
258,816
|
255,266
|
||||||
Sixth
program/first issuance
|
250,000
|
CDI + 2% a
3.25%
|
August
2011
|
253,655
|
-
|
||||||
First
program/first issuance (Tenda)
|
600,000
|
TR+8%
|
April
2014
|
619,861
|
-
|
||||||
1,324,781
|
503,945
|
||||||||||
Current
portion
|
80,781
|
61,945
|
|||||||||
Non-current
portion
|
1,244,000
|
442,000
|
September
30, 2009
|
||||
(Unaudited)
|
||||
2009
|
26,619 | |||
2010
|
102,162 | |||
2011
|
346,000 | |||
2012
|
275,000 | |||
2013
|
425,000 | |||
2014 and
thereafter
|
150,000 | |||
1,324,781 |
September
30, 2009
|
December
31, 2008
|
|||||||
(Unaudited)
|
||||||||
Second
program – first issuance
|
||||||||
Total debt, less debt of projects, less
cash, cash equivalents,
and financial investments cannot exceed
75% of
shareholders’ equity plus noncontrolling
shareholders’ participation
|
15 | % | N/A | |||||
Total
debt, less SFH debt, less cash, cash equivalents,
and financial investments cannot exceed 75% of shareholders’
equity
|
N/A | 35 | % | |||||
Total receivables from clients from
development and
services, plus inventory of finished
units, required to
be over 2.0 times total
debt
|
2.6
times
|
3.3
times
|
||||||
Total debt, less cash, cash equivalents
and financial
investments, required to be under
R$ 1.0 billion
|
N/A | R$ 946,600 | ||||||
Third
program – first issuance
|
||||||||
Total debt, less SFH debt, less cash,
cash equivalents,
and financial investments cannot exceed
75% of
shareholders’ equity
|
54 | % | 35 | % | ||||
Total accounts receivable plus
inventory of finished
units required to be over 2.2 times net
debt
|
4.5
times
|
5.5
times
|
11
|
Other
accounts payable
|
September
30, 2009
|
December
31, 2008
|
|||||||
(unaudited)
|
||||||||
Obligation to
venture partners (i)
|
300,000 | 300,000 | ||||||
Credit
assignments (Note 5)
|
128,712 | 67,552 | ||||||
Acquisition
of investments
|
26,976 | 30,875 | ||||||
Dividends to
ventures’ partners
|
4,458 | 16,398 | ||||||
Advance for
future capital increase
|
1,180 | - | ||||||
Other
accounts payable
|
82,829 | 72,867 | ||||||
544,155 | 487,692 | |||||||
Current
portion
|
181,312 | 97,933 | ||||||
Non-current
portion
|
362,843 | 389,759 |
(i)
|
In January
2008, the Company formed an unincorporated venture (SCP), the main
objective of which is to hold interests in other real estate development
companies. The SCP received contributions of R$ 313,084 through September
30, 2009 (represented by 13,084,000 Class A quotas fully paid-in by the
Company and 300,000,000 Class B quotas from the other venture partner).
The SCP will preferably use these funds to acquire equity investments and
increase the capital of its investees. As the decision to invest or not is
made jointly by all quotaholders, the venture is treated as a variable
interest entity and the Company deemed to be the primary beneficiary; at
September 30, 2009, Obligations to venture partners amounting to R$
300,000 mature on January 31, 2014. The SCP has a defined term which ends
on January 31, 2014 at which time the Company is required to redeem the
venture partner's interest. The venture partner receives an annual
dividend substantially equivalent to the variation in the Interbank
Certificate of Deposit (CDI) rate. The SCP's charter provides for the
compliance with certain covenants by the Company, in its capacity as lead
partner, which include the maintenance of minimum indices of net debt and
receivables. At September 30, 2009, the SCP and the Company were in
compliance with these clauses.
|
12
|
Commitments
and provision for contingencies
|
September
30, 2009
|
||||
(Unaudited)
|
||||
Balance at
the beginning of the period
|
53,530 | |||
Additions
|
75,986 | |||
Reversals and
settlements
|
(9,177 | ) | ||
Balance at
the end of the period
|
120,339 | |||
Escrow
deposits
|
(50,318 | ) | ||
Balance at
the end of the period
|
70,021 |
(a)
|
Tax,
labor and civil lawsuits
|
September
30, 2009
|
December
31, 2008
|
|||||||
(Unaudited) | ||||||||
Civil
lawsuits
|
84,200 | 27,779 | ||||||
Tax
lawsuits
|
24,567 | 19,609 | ||||||
Labor
claims
|
11,572 | 9,976 | ||||||
Court-mandated
escrow deposits
|
(50,318 | ) | (3,834 | ) | ||||
70,021 | 53,530 | |||||||
Current
|
10,512 | 17,567 | ||||||
Non-current
|
59,509 | 35,963 |
(b)
|
Commitment
to complete developments
|
13
|
Obligations
for purchase of land and advances from
clients
|
September
30, 2009
|
December
31, 2008
|
|||||||
(Unaudited)
|
||||||||
Obligations
for purchase of land
|
427,039 | 392,762 | ||||||
Advances from
clients
|
||||||||
Development and
services
|
128,384 | 90,363 | ||||||
Barter transactions
|
80,680 | 169,658 | ||||||
636,103 | 652,783 | |||||||
Current
|
488,935 | 421,584 | ||||||
Non-current
|
147,168 | 231,199 |
14
|
Shareholders’
Equity
|
(a)
|
Capital
|
(b)
|
Stock
option plans
|
(i)
|
Gafisa
|
September 30, 2009
|
December 31,
2008
|
|||||||||||||||
(Unaudited)
|
||||||||||||||||
Number of
options
|
Weighted average exercise price –
in Reais
|
Number of
options
|
Weighted average exercise price –
in Reais
|
|||||||||||||
Options outstanding at the
beginning of the period
|
5,930,275 | 26.14 | 5,174,341 | 22.93 | ||||||||||||
Options
granted
|
3,200,000 | 17.06 | 2,145,793 | 31.81 | ||||||||||||
Options
exercised
|
(545,800 | ) | 16.15 | (441,123 | ) | 16.72 | ||||||||||
Options
expired
|
(2,740,000 | ) | 32.99 | (3,675 | ) | 20.55 | ||||||||||
Options
cancelled
|
(197,742 | ) | 32.99 | (945,061 | ) | 20.55 | ||||||||||
Options outstanding at the end of
the period
|
5,646,733 | 13.97 | 5,930,275 | 26.14 | ||||||||||||
Options exercisable at the end of
the period
|
1,503,123 | 27.38 | 4,376,165 | 28.00 |
in
reais
|
|||||
September
30, 2009
|
December
31, 2008
|
||||
(Unaudited)
|
|
||||
Exercise
price per share at the end of the period
|
7.99-41.07
|
7.86-39.95
|
|||
Weighted
average of exercise price at the option grant date
|
18.70
|
21.70
|
|||
Weighted
average market price per share at the grant date
|
22.38
|
27.27
|
|||
Market price
per share at the end of the period
|
26.68
|
10.49
|
(ii)
|
Tenda
|
September 30,
2009
|
December 31,
2008
|
|||||||||||||||
(Unaudited)
|
||||||||||||||||
Number
of options
|
Weighted
average exercise price – in Reais
|
Number
of options
|
Weighted
average exercise price – in Reais
|
|||||||||||||
Options
outstanding at the beginning of the period
|
2,070,000 | 7.20 | - | - | ||||||||||||
Options granted
|
6,089,718 | 1.27 | 2,640,000 | 7.20 | ||||||||||||
Options exercised
|
(151,917 | ) | 2.63 | - | - | |||||||||||
Options cancelled
|
(1,870,583 | ) | 5.16 | (570,000 | ) | 7.20 | ||||||||||
Options
outstanding at the end of the period
|
6,137,218 | 1.52 | 2,070,000 | 7.20 | ||||||||||||
(iii)
|
Alphaville
|
September 30,
2009
|
December 31,
2008
|
|||||||||||||||
(Unaudited)
|
||||||||||||||||
Number
of options
|
Weighted
average exercise price - Reais
|
Number
of options
|
Weighted
average exercise price – Reais
|
|||||||||||||
Options
outstanding at the beginning of the period
|
2,138 | 7,610.23 | 1,474 | 6,522.92 | ||||||||||||
Options
granted
|
- | - | 720 | 7,474.93 | ||||||||||||
Options cancelled
|
(60 | ) | - | (56 | ) | 6,522.92 | ||||||||||
Options
outstanding at the end of the period
|
2,078 | 7,610.23 | 2,138 | 6,843.52 |
15
|
Deferred
Taxes
|
September
30, 2009
|
December
31, 2008
|
|||||||
(Unaudited) | ||||||||
Assets
|
||||||||
Net operating loss
carryforwards
|
100,446 | 76,640 | ||||||
Temporary differences
|
||||||||
Tax versus prior book
basis
|
112,671 | 52,321 | ||||||
CPC accounting
standards
|
46,936 | 39,680 | ||||||
Tax credits from downstream
mergers
|
3,892 | 21,611 | ||||||
263,945 | 190,252 | |||||||
Liabilities
|
||||||||
Differences between income taxed on
cash and recorded on accrual
basis
|
271,952 | 202,743 | ||||||
Negative goodwill
|
79,504 | 18,266 | ||||||
Temporary differences - CPC accounting
standards
|
23,789 | 18,122 | ||||||
375,245 | 239,131 |
2009
|
5,289 | |||
2010
|
33,192 | |||
2011
|
47,168 | |||
2012
|
2,129 | |||
Thereafter
|
24,893 | |||
Total
|
112,671 |
September
30, 2009
|
September
30, 2008
|
|||||||
(Unaudited) | (Unaudited) | |||||||
Income before
taxes on income and noncontrolling interest
|
276,593 | 183,072 | ||||||
Income tax
calculated at the standard rate - 34%
|
(94,042 | ) | (62,244 | ) | ||||
Net effect of
subsidiaries taxed on presumed profit regime
|
35,766 | 7,919 | ||||||
Stock option
plan
|
(5,966 | ) | (6,673 | ) | ||||
Negative
goodwill amortization
|
(5,203 | ) | ||||||
Prior period
income tax and social contribution tax losses
|
115 | 1,123 | ||||||
Other
non-deductible items, net
|
4,426 | 9,419 | ||||||
Income tax
and social contribution expense
|
(64,904 | ) | (50,456 | ) |
16
|
Financial
Instruments
|
(a)
|
Risk
considerations
|
Net
unrealized gains (losses)
|
|||||||||||
Reais
|
Percentage
|
from
derivative instruments
|
|||||||||
Rate
swap contracts -
|
Nominal
|
Original
|
|||||||||
(US
Dollar and Yen for CDI)
|
value
|
index
|
Swap
|
September30,
2009
|
September
30, 2008
|
||||||
(Unaudited)
|
|
(Unaudited)
|
|||||||||
Banco ABN
Amro Real S.A.
|
100,000
|
Yen +
1.4%
|
105% of
CDI
|
7,296
|
4,501
|
||||||
Banco
Votorantim S.A.
|
100,000
|
US Dollar +
7%
|
104% of
CDI
|
-
|
9,096
|
||||||
200,000
|
7,296
|
13,597
|
(b)
|
Valuation
of financial instruments
|
(c)
|
Sensitivity
analysis
|
|
.
|
Scenario I: Likely –
Management considered the market yield curves at September 30, 2009 for
the maturity dates of derivative
transactions:
|
|
.
|
Scenario II: Appreciation/Devaluation by
25% of risk variables used in
pricing.
|
|
.
|
Scenario IIII: Appreciation/Devaluation
by 50% of risk variables used in
pricing.
|
Scenario (*) | ||||||||||||||||||||||
|
I | II |
III
|
|||||||||||||||||||
Transaction
|
Risk |
Expected
|
Devaluation
|
Appreciation
|
Devaluation
|
Appreciation
|
||||||||||||||||
"Swap" (asset
position - Yen)
|
Apprec./Dev. of Yen | - | 32,826 | 32,747 | 65,652 | (65,652 | ) | |||||||||||||||
Debt
denominated in Yen
|
Apprec./Dev. of Yen | - | 32,747 | 32,826 | 65,493 | (65,493 | ) | |||||||||||||||
Net effect of Yen devaluation | - | 79 | (79 | ) | 159 | (159 | ) |
Scenario (*) | ||||||||||||||||||||||
|
I | II |
III
|
|||||||||||||||||||
Transaction
|
Risk |
Expected
|
Devaluation
|
Appreciation
|
Devaluation
|
Appreciation
|
||||||||||||||||
ABN Amro swap
- liability position balance in CDI on maturity date (October 29,
2009)
|
Appreciation of CDI | 124,814 | 125,018 | 124,606 | 125,219 | 124,394 |
17
|
Related
Parties
|
(a)
|
Transactions
with related parties
|
September
30,
|
December
31,
|
|||||||
Current
account
|
2009
|
2008 | ||||||
(Unaudited)
|
||||||||
Condominiums
and consortia
|
||||||||
Alpha 4
|
(4,452 | ) | (466 | ) | ||||
Consórcio Ezetec &
Gafisa
|
29,440 | 9,341 | ||||||
Consórcio Ezetec Gafisa
|
- | (9,300 | ) | |||||
Cond. Constr. Empr.
Pinheiros
|
2,823 | 2,132 | ||||||
Condomínio Parque da
Tijuca
|
(208 | ) | 235 | |||||
Condomínio em Const. Barra
Fir.
|
(46 | ) | (46 | ) | ||||
Civilcorp
|
711 | 791 | ||||||
Condomínio do Ed. Barra
Premiu
|
105 | 105 | ||||||
Consórcio Gafisa Rizzo
|
44 | (273 | ) | |||||
Evolução Chacara das
Flores
|
7 | 7 | ||||||
Condomínio Passo da Patria
II
|
569 | 569 | ||||||
Cond. Constr. Palazzo
Farnese
|
(17 | ) | (17 | ) | ||||
Alpha 3
|
(1,838 | ) | (214 | ) | ||||
Condomínio Iguatemi
|
3 | 3 | ||||||
Consórcio Quintas Nova
Cidade
|
36 | 36 | ||||||
Consórcio Ponta Negra
|
2,508 | 3,838 | ||||||
Consórcio SISPAR &
Gafisa
|
4,509 | 1,995 | ||||||
Cd. Advanced Ofs. Gafisa -
Metro
|
(865 | ) | (417 | ) | ||||
Condomínio Acqua
|
(3,647 | ) | (2,629 | ) | ||||
Cond. Constr. Living
|
(620 | ) | 1,478 | |||||
Consórcio Bem Viver
|
(274 | ) | 5 | |||||
Cond. Urbaniz. Lot Quintas
Rio
|
(3,390 | ) | (486 | ) | ||||
Cond. Constr. Homem de
Melo
|
83 | 83 | ||||||
Consórcio OAS Gafisa -
Garden
|
(9,910 | ) | (1,759 | ) | ||||
Cond.
Constr. La Traviata
|
(271 | ) | ||||||
Cond. em Constr.
Lacedemonia
|
57 | 57 |
September
30,
|
December
31,
|
|||||||
Current
account
|
2009
|
2008 | ||||||
(Unaudited)
|
||||||||
Evolução New Place
|
(671 | ) | (665 | ) | ||||
Consórcio Gafisa Algo
|
722 | 711 | ||||||
Columbia Outeiro dos
Nobres
|
(153 | ) | (153 | ) | ||||
Evolução - Reserva do
Bosque
|
11 | 5 | ||||||
Evolução - Reserva do
Parque
|
59 | 122 | ||||||
Consórcio Gafisa &
Bricks
|
611 | (26 | ) | |||||
Cond. Constr. Fernando
Torres
|
136 | 135 | ||||||
Cond. de Const. Sunrise
Reside
|
382 | 18 | ||||||
Evolução Ventos do
Leste
|
123 | 159 | ||||||
Consórcio Quatro
Estações
|
(1,328 | ) | (1,340 | ) | ||||
Cond. em Const. Sampaio
Viana
|
951 | 951 | ||||||
Cond. Constr. Monte
Alegre
|
1,456 | 1,456 | ||||||
Cond. Constr. Afonso de
Freitas
|
1,674 | 1,674 | ||||||
Consórcio New Point
|
1,348 | 1,472 | ||||||
Evolução - Campo Grande
|
612 | 618 | ||||||
Condomínio do Ed. Oontal
Beach
|
(486 | ) | 43 | |||||
Consórcio OAS Gafisa -
Garden
|
(7,661 | ) | 430 | |||||
Cond. Constr. Infra
Panamby
|
(187 | ) | (483 | ) | ||||
Condomínio Strelitzia
|
(936 | ) | (851 | ) | ||||
Cond. Constr. Anthuriun
|
2,485 | 4,319 | ||||||
Condomínio Hibiscus
|
2,677 | 2,715 | ||||||
Cond. em Constr
Splendor
|
1,813 | (1,848 | ) | |||||
Condomínio Palazzo
|
1, 286 | 793 | ||||||
Cond. Constr. Doble
View
|
(3,298 | ) | (1,719 | ) | ||||
Panamby - Torre K1
|
416 | 887 | ||||||
Condomínio Cypris
|
(1,722 | ) | (1,436 | ) | ||||
Cond em Constr Doppio
Spazio
|
(3, 222 | ) | (2,407 | ) | ||||
Consórcio
|
6,631 | 2,493 | ||||||
Consórcio Planc e
Gafisa
|
809 | 270 | ||||||
Consórcio Gafisa & Rizzo
(susp.)
|
1,520 | 1,239 | ||||||
Consórcio Gafisa OAS -
Abaeté
|
(8,625 | ) | 3,638 | |||||
Cond. do Clube Quintas do
Rio
|
1 | 1 | ||||||
Cons. OAS-Gafisa Horto
Panamby
|
(9,044 | ) | 9,349 | |||||
Consórcio OAS e Gafisa - Horto
Panamby
|
(2,001 | ) | (27 | ) | ||||
Consórcio Ponta Negra - Ed.
Marseille
|
- | (1,033 | ) | |||||
Consórcio Ponta Negra - Ed.
Nice
|
(9,885 | ) | (4,687 | ) | ||||
Manhattan Square
|
(2,075 | ) | 600 | |||||
Cons. Eztec Gafisa Pedro
Luis
|
(11,380 | ) | (3,589 | ) |
September
30,
|
December
31,
|
|||||||
Current
account
|
2009
|
2008 | ||||||
(Unaudited)
|
||||||||
Consórcio Planc Boa
Esperança
|
1,316 | 603 | ||||||
Consórcio OAS e Gafisa -
Tribeca
|
209 | (144 | ) | |||||
Consórcio OAS e Gafisa -
Soho
|
- | (167 | ) | |||||
Consórcio Gafisa &
GM
|
(81 | ) | (40 | ) | ||||
Consórcio Ventos do
Leste
|
(1 | ) | (1 | ) | ||||
Bairro Novo Cotia
|
9,506 | (6,137 | ) | |||||
Bairro Novo Camaçari
|
1,260 | (2,585 | ) | |||||
Bairro Novo Fortaleza
|
- | 2 | ||||||
Bairro Novo Nova Iguaçu
|
- | (330 | ) | |||||
Bairro Novo Cia.
Aeroporto
|
- | (55 | ) | |||||
Consórcio B Novo Ap.
Gioania
|
- | (210 | ) | |||||
Consórcio B Novo
Campinas
|
- | (261 | ) | |||||
9,385 | 9,577 | |||||||
Other
SPEs
|
||||||||
Gafisa SPE 10 S.A.
|
(9,580 | ) | 2,051 | |||||
Gafisa Vendas I. Imob.
Ltda.
|
2,384 | 2,384 | ||||||
Projeto Alga
|
(25,000 | ) | (25,000 | ) | ||||
Outros
|
(351 | ) | - | |||||
(32,547 | ) | (20,565 | ) | |||||
SPEs
|
||||||||
Alphaville
Urbanismo S.A.
|
5,588 | - | ||||||
FIT Resid. Empreend. Imob.
Ltda.
|
(1,423 | ) | 12,058 | |||||
Bairro Novo Emp Imob
S.A.
|
1,968 | 1,968 | ||||||
Cipesa Empreendimentos
Imobil.
|
(398 | ) | (398 | ) | ||||
The house
|
80 | 80 | ||||||
Gafisa SPE 46 Empreend.
Imob.
|
9,161 | 8,172 | ||||||
Gafisa SPE 40 Emp. Imob.
Ltda.
|
878 | 1,288 | ||||||
Vistta
Ibirapuera
|
1,073 | - | ||||||
Blue II Plan. Prom. e Venda
Lt.
|
(10,636 | ) | 911 | |||||
SAÍ AMARELA S.A.
|
(1,393 | ) | (1,138 | ) | ||||
GAFISA SPE-49 Empre. Imob.
Ltda.
|
(2 | ) | (2 | ) | ||||
London Green
|
9 | - | ||||||
Gafisa SPE-35 Ltda.
|
(1,379 | ) | (129 | ) | ||||
Gafisa SPE 38 Empr. Imob.
Ltda.
|
312 | 109 | ||||||
LT Incorporadora SPE
Ltda.
|
(531 | ) | (527 | ) | ||||
Res. das Palmeiras Inc. SPE
Lt.
|
1,246 | 1,246 |
September
30,
|
December
31,
|
|||||||
Current
account
|
2009
|
2008 | ||||||
(Unaudited)
|
||||||||
Gafisa SPE 41 Empr. Imob.
Ltda.
|
1,773 | 1,534 | ||||||
Acqua
Residencial
|
196 | - | ||||||
Dolce VitaBella Vita SPE
S.A.
|
(102 | ) | 32 | |||||
Saira Verde Empreend. Imobil.
Lt.
|
991 | 214 | ||||||
Gafisa SPE 22 Ltda.
|
600 | 630 | ||||||
CSF Prímula
|
2,511 | - | ||||||
Gafisa SPE 39 Empr. Imobil.
Ltda.
|
(606 | ) | (304 | ) | ||||
DV SPE S.A.
|
(564 | ) | (571 | ) | ||||
CSF
Santtorino
|
5 | - | ||||||
Gafisa SPE 48 Empreend.
Imobili.
|
(188 | ) | 159 | |||||
Espacio
Laguna
|
286 | - | ||||||
Gafisa SPE-53 Empre. Imob.
Ltda.
|
(39 | ) | (94 | ) | ||||
Jardim II Planej. Prom. Vda.
Ltda.
|
(2,993 | ) | (2,990 | ) | ||||
Gafisa SPE 37 Empreend.
Imobil.
|
(271 | ) | (398 | ) | ||||
Gafisa SPE-51 Empre. Imob.
Ltda.
|
790 | 810 | ||||||
Gafisa SPE 36 Empr. Imob.
Ltda.
|
(647 | ) | (1,205 | ) | ||||
Gafisa SPE 47 Empreend.
Imobili.
|
566 | 146 | ||||||
Sunplace SPE Ltda.
|
415 | 415 | ||||||
Sunplaza
Personal Office
|
10,316 | |||||||
Sunshine SPE Ltda.
|
563 | 1,135 | ||||||
Gafisa SPE 30 Ltda.
|
(1,206 | ) | (1,217 | ) | ||||
Gafisa SPE-50 Empr. Imob.
Ltda.
|
(2,796 | ) | (221 | ) | ||||
Tiner Campo Belo I Empr.
Imobil.
|
525 | 6,972 | ||||||
Gafisa SPE-33 Ltda.
|
2,321 | 2,321 | ||||||
Jardim I Planej. Prom. Vda.
Ltda.
|
6,581 | 6,662 | ||||||
Verdes Praças Inc. Imob. SPE
Lt.
|
(38 | ) | (38 | ) | ||||
Gafisa SPE 42 Empr. Imob.
Ltda.
|
(120 | ) | 64 | |||||
Península I SPE S.A.
|
(696 | ) | (1,267 | ) | ||||
Península 2 SPE S.A.
|
2,489 | 865 | ||||||
Blue I SPE Ltda.
|
2,642 | 74 | ||||||
Blue II Plan. Prom. e Venda
Lt.
|
(6 | ) | - | |||||
Blue II Plan. Prom. e Venda
Lt.
|
(3 | ) | - | |||||
Weber
Art
|
(148 | ) | ||||||
Olimpic
Chácara Santo Antonio
|
21 | |||||||
Gafisa SPE-55 Empr. Imob.
Ltda.
|
(54 | ) | (2 | ) | ||||
Gafisa SPE 32
|
(2,370 | ) | (2,304 | ) | ||||
Cyrela Gafisa SPE Ltda.
|
2,984 | 2,834 | ||||||
Unigafisa Part SCP
|
(7,074 | ) | 1,040 | |||||
Villagio Panamby Trust
S.A.
|
2,271 | 749 | ||||||
Diodon Participações
Ltda.
|
1,680 | 13,669 | ||||||
Diodon Participações
Ltda.
|
131 | - | ||||||
Gafisa SPE 44 Empreend.
Imobili.
|
221 | 175 | ||||||
Gafisa S.A.
|
1,437 | 1,218 |
September 30, |
December
31,
|
|||||||
Current
account
|
2009
|
2008 | ||||||
(Unaudited) | ||||||||
Spazio Natura Emp. Imob.
Ltd.
|
4 | - | ||||||
Dep. José Lages Emp. Imob.
S.
|
1,345 | - | ||||||
O Bosque E. Imob. Ltda.
|
120 | - | ||||||
Gafisa SPE 65 Empreend. Imob.
Ltd.
|
168 | 321 | ||||||
Cara de Cão
|
(2,967 | ) | - | |||||
Laguna
|
(390 | ) | - | |||||
Gafisa SPE-72
|
(24 | ) | 1 | |||||
Gafisa SPE-52 E. Imob.
Ltda.
|
42 | 42 | ||||||
Gafisa SPE-32 Ltda.
|
2,220 | 2,220 | ||||||
Terreno
Ribeirão/Curupira
|
1,352 | 1,360 | ||||||
Edif. Nice
|
(95 | ) | (95 | ) | ||||
Gafisa SPE-71
|
(61 | ) | 124 | |||||
Zildete
|
(64 | ) | - | |||||
Clube Baiano de Tênis
|
313 | - | ||||||
Gafisa SPE-73
|
1 | 1 | ||||||
Gafisa SPE 69
Empreendimentos
|
(159 | ) | (72 | ) | ||||
Gafisa SPE 43 Empr. Imob.
Ltda.
|
5 | - | ||||||
Gafisa SPE-74 Emp. Imob.
Ltda.
|
(519 | ) | 1 | |||||
Gafisa SPE 59 Empreend. Imob.
Ltda.
|
(1 | ) | 1 | |||||
Gafisa SPE-67 Emp.
Ltda.
|
1 | |||||||
Gafisa SPE 68
Empreendimentos
|
1 | 1 | ||||||
Gafisa SPE-76 Emp. Imob.
Ltda.
|
(10 | ) | 24 | |||||
Gafisa SPE-77 Emp. Imob.
Ltda.
|
3,303 | 3,289 | ||||||
Gafisa SPE-78 Emp. Imob.
Ltda.
|
9 | 1 | ||||||
Gafisa SPE-79 Emp. Imob.
Ltda.
|
1 | 1 | ||||||
Gafisa SPE 70
Empreendimentos
|
1,352 | (746 | ) | |||||
Gafisa SPE 61 Empreendimento
I
|
(13 | ) | (12 | ) | ||||
Soc. em Cta. de Particip.
Gafisa
|
(878 | ) | (878 | ) | ||||
Gafisa SPE-85 Emp. Imob.
Ltda.
|
(1,334 | ) | (96 | ) | ||||
Gafisa SPE-84 Emp. Imob.
Ltda.
|
212 | 381 | ||||||
Sítio
Jatiúca Empr. Imob. SPE Ltda.
|
1,266 | - | ||||||
DEPUT
JOSE LAJES Empreend. Imob. Ltda.
|
71 | - | ||||||
OAS
City Park Brotas Empr. Imob.
|
925 | - | ||||||
City
Park Acupe Emp. Imob.
|
252 | - | ||||||
Gafisa
SPE 83 Emp. Imob. Ltda.
|
201 | - | ||||||
Gafisa
SPE 87 Emp. Imob. Ltda
|
19 | - | ||||||
Gafisa
SPE 88 Emp. Imob. Ltda
|
394 | - | ||||||
Gafisa
SPE 89 Emp. Imob. Ltda
|
(868 | ) | - | |||||
Gafisa
SPE 90 Emp. Imob. Ltda
|
126 | - | ||||||
Gafisa
SPE 75 Emp. Imob. Ltda
|
30 | - | ||||||
Grand
Park – Arvores
|
(700 | ) | - | |||||
Gafisa SPE-77 Emp.
|
(104 | ) | 1,463 | |||||
Mário Covas SPE
Empreendimento
|
(816 | ) | (208 | ) | ||||
Imbui I SPE Empreendimento
Imob.
|
1 | 1 |
September
30,
|
December
31,
|
|||||||
Current
account
|
2009
|
2008
|
||||||
(Unaudited) | ||||||||
Acedio SPE Empreend. Imob.
Ltda.
|
2 | 2 | ||||||
Maria Inês SPE Empreend.
Imob.
|
(2 | ) | (2 | ) | ||||
Gafisa SPE 64 Empreendimento
I
|
1 | (50 | ) | |||||
Fit Jd. Botânico SPE
Emp.
|
(39 | ) | - | |||||
Cipesa
Empreendimentos Imob.
|
6 | - | ||||||
31,645 | 61,821 | |||||||
Other
|
||||||||
Camargo Corrêa Des. Imob.
S.A.
|
917 | 916 | ||||||
Gênesis Desenvol. Imob.
S.A.
|
(216 | ) | (216 | ) | ||||
Empr. Icorp. Boulevard SPE
Lt.
|
56 | 56 | ||||||
Cond. Const. Barra First
Class
|
31 | 31 | ||||||
Klabin Segall S.A.
|
532 | 532 | ||||||
Edge Incorp. e Part.
Ltda.
|
146 | 146 | ||||||
Multiplan Plan. Particip. e
Ad.
|
100 | 100 | ||||||
Administ. Shopping Nova
América
|
90 | 90 | ||||||
Ypuã Empreendimentos
Imob.
|
200 | 4 | ||||||
Cond. Constr. Jd. Des.
Tuiliere
|
(124 | ) | (124 | ) | ||||
Rossi AEM Incorporação
Ltda.
|
3 | 3 | ||||||
Patrimônio Constr. e Empr.
Ltda.
|
307 | 307 | ||||||
Camargo Corrêa Des. Imob.
S.A.
|
39 | 39 | ||||||
Cond Park Village
|
(107 | ) | (107 | ) | ||||
Boulevard0 Jardins Empr.
Incorp.
|
(89 | ) | (89 | ) | ||||
Rezende Imóveis e
Construções
|
809 | 809 | ||||||
São José Constr. e Com.
Ltda.
|
543 | 543 | ||||||
Condomínio Civil
Eldorado
|
276 | 276 | ||||||
Tati Construtora Incorp.
Ltda.
|
286 | 286 | ||||||
Columbia Engenharia
Ltda.
|
431 | 431 | ||||||
Civilcorp Incorporações
Ltda.
|
4 | 4 | ||||||
Waldomiro Zarzur Eng. Const.
Lt.
|
1,801 | 1,801 |
September
30,
|
December
31,
|
|||||||
Current
account
|
2009
|
2008
|
||||||
(Unaudited) | ||||||||
Rossi Residencial S.A.
|
431 | 431 | ||||||
RDV 11 SPE Ltda.
|
(781 | ) | (781 | ) | ||||
Jorges Imóveis e
Administrações
|
1 | 1 | ||||||
Camargo Corrêa Des. Imob.
S.A.
|
(661 | ) | (673 | ) | ||||
Camargo Corrêa Des. Imob.
S.A.
|
(323 | ) | (323 | ) | ||||
Patrimônio Const. Empreend.
Ltda.
|
155 | 155 | ||||||
Alta Vistta Maceió
(Controle)
|
3,960 | 2,318 | ||||||
Forest Ville (OAS)
|
813 | 807 | ||||||
Garden Ville (OAS)
|
272 | 276 | ||||||
JTR - Jatiuca Trade
Residence
|
4,796 | 880 | ||||||
Acquarelle (Controle)
|
15 | 1 | ||||||
Riv Ponta Negra - Ed.
Nice
|
1,748 | 353 | ||||||
Palm Ville (OAS)
|
200 | 185 | ||||||
Art. Ville (OAS)
|
273 | 180 | ||||||
Oscar
Freire Open View
|
(282 | ) | - | |||||
Open
View Galeno de Almeida
|
(127 | ) | - | |||||
Incons
Empreend. Imob. SP
|
4,646 | - | ||||||
Carlyle RB2 AS
|
(1,774 | ) | - | |||||
Partifib P. I. Fiorata
Lt.
|
(488 | ) | - | |||||
Partifib
P. I. Volare Ltda
|
(373 | ) | - | |||||
Outros
|
- | 32 | ||||||
18,536 | 9,680 | |||||||
8,249 | 60,513 |
18
|
Insurance
|
19
|
Segment
information
|
September
30, 2009
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Gafisa S.A. ( *) |
Tenda(**)
|
Alphaville
|
Total
|
|||||||||||||
Net operating
revenue
|
1,218,156 | 726,098 | 180,552 | 2,124,806 | ||||||||||||
Operating
costs
|
(909,191 | ) | (496,226 | ) | (118,223 | ) | (1,523,640 | ) | ||||||||
Gross
profit
|
308,965 | 229,872 | 62,329 | 601,166 | ||||||||||||
Gross margin
- %
|
25.4 | % | 31.7 | % | 34.5 | % | 28.3 | % | ||||||||
Net income
(loss) for the period
|
112,831 | 33,563 | 11,824 | 158,218 | ||||||||||||
Receivables
from clients (current and non-current)
|
2,113,616 | 1,059,130 | 207,664 | 3,380,410 | ||||||||||||
Properties
for sale
|
1,251,641 | 357,130 | 153,661 | 1,762,432 | ||||||||||||
Other
assets
|
774,723 | 967,412 | 46,562 | 1,788,697 | ||||||||||||
Total
assets
|
4,139,980 | 2,383,672 | 407,887 | 6,931,539 |
(*)
|
Includes all
subsidiaries, except Tenda and
Alphaville.
|
(**)
|
Includes
Tenda and Bairro Novo.
|
September
30, 2008
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
Gafisa S.A. (* ) |
Alphaville
|
FIT
Residencial
|
Bairro
Novo
|
Total
|
||||||||||||||||
Net operating
revenue
|
951,808 | 169,247 | 70,718 | 786 | 1,192,559 | |||||||||||||||
Operating
costs
|
(652,491 | ) | (109,253 | ) | (51,919 | ) | (538 | ) | (814,201 | ) | ||||||||||
Gross
profit
|
299,317 | 59,994 | 18,799 | 248 | 378,358 | |||||||||||||||
Gross margin
- %
|
31.4 | % | 35.4 | % | 26.6 | % | 31.6 | % | 31.7 | % | ||||||||||
Net income
(loss) for the year
|
100,880 | 18,307 | (15,442 | ) | (6,669 | ) | 97,076 | |||||||||||||
Receivables
from clients (current and
non-current)
|
1,354,677 | 145,520 | 61,147 | 789 | 1,562,133 | |||||||||||||||
Properties
for sale
|
1,257,997 | 117,201 | 161,474 | 3,049 | 1,539,721 | |||||||||||||||
Other
assets
|
1,252,357 | 48,382 | 59,567 | 6,070 | 1,366,376 | |||||||||||||||
Total
assets
|
3,865,031 | 311,103 | 282,188 | 9,908 | 4,468,230 |
(*)
|
Includes all
subsidiaries, except AUSA, FIT Residencial and Bairro
Novo
|
20
|
Subsequent
events
|
(i)
|
Issuance
of simple debentures in the total amount of R$
600,000
|
(ii)
|
Proposal
for merger of all shares of subsidiary Construtora
Tenda
|
21
|
Supplemental
Information - Summary of Principal
|
(a)
|
Description
of the GAAP differences
|
(i)
|
Principles
of consolidation
|
(ii)
|
Revenue
recognition
|
(iii)
|
Capitalized
interest
|
(iv)
|
Stock
option plan
|
(v)
|
Earnings
per share
|
September
30, 2009
|
September
30, 2008
|
|||||||||||||||
(Unaudited)
|
||||||||||||||||
Common
|
Total
|
Common
|
Total
|
|||||||||||||
Basic
numerator
|
||||||||||||||||
Dividends proposed
|
- | - | - | - | ||||||||||||
US GAAP undistributed earnings
(unallocated losses)
|
(53,497 | ) | (53,497 | ) | 142,493 | 142,493 | ||||||||||
Allocated US GAAP undistributed earnings
(unallocated losses) available for Common
shareholders
|
(53,497 | ) | (53,497 | ) | 142,493 | 142,493 | ||||||||||
Basic
denominator (in thousands of shares)
|
||||||||||||||||
Weighted-average number of
shares
|
130,196 | 129,572 | ||||||||||||||
Basic earnings (loss) per share - US
GAAP - R$
|
(0.41 | ) | 1.10 | |||||||||||||
Diluted
numerator
|
||||||||||||||||
Dividends proposed
|
- | - | - | - | ||||||||||||
US GAAP undistributed earnings
(unallocated losses)
|
(53,497 | ) | (53,497 | ) | 142,493 | 142,495 | ||||||||||
Allocated US
GAAP undistributed earnings(unallocated losses) available
for Common
shareholders
|
(53,497 | ) | (53,497 | ) | 142,493 | 142,493 | ||||||||||
Diluted
denominator (in thousands of shares)
|
||||||||||||||||
Weighted-average number of
shares
|
130,196 | 129,572 | ||||||||||||||
Stock options
|
- | 680 | ||||||||||||||
Diluted weighted-average number of
shares
|
130,196 | 130,252 | ||||||||||||||
Diluted earnings (loss) per share - US
GAAP - R$
|
(0.41 | ) | 1.09 |
(vi)
|
Business
combinations
|
(a)
|
Tenda
transaction
|
Tenda
purchase consideration
|
367,703 | |||
FIT
Residencial US GAAP book value (40%)
|
162,176 | |||
205,527 |
Fair
value - %
|
||||||||
At
100
|
At
60
|
|||||||
Current
assets
|
539,741 | 323,845 | ||||||
Non-current
receivables
|
252,453 | 151,472 | ||||||
Properties
for sale - non current
|
174,168 | 104,501 | ||||||
Intangible
assets
|
42,449 | 25,469 | ||||||
Other
assets
|
101,191 | 60,714 | ||||||
Total assets acquired
|
1,110,002 | 666,001 | ||||||
Total
liabilities assumed
|
(497,164 | ) | (298,298 | ) | ||||
Net assets acquired
|
612,838 | 367,703 |
(b)
|
Alphaville
transaction
|
Fair
value - %
|
||||||||
At
100
|
At
60
|
|||||||
Current
assets
|
69,371 | 41,623 | ||||||
Non-current
receivables
|
73,478 | 44,087 | ||||||
Other
assets
|
17,379 | 10,427 | ||||||
Intangible
assets
|
307,760 | 184,656 | ||||||
Total assets acquired
|
467,988 | 280,793 | ||||||
Total
liabilities assumed
|
(144,064 | ) | (86,438 | ) | ||||
Net assets acquired
|
323,924 | 194,355 |
(c)
|
Cipesa
transaction
|
Fair
value - %
|
||||||||
At
100
|
At
70
|
|||||||
Current
assets
|
96,675 | 67,673 | ||||||
Other
assets
|
8 | 5 | ||||||
Total assets acquired
|
96,683 | 67,678 | ||||||
Total
liabilities assumed
|
(2,527 | ) | (1,769 | ) | ||||
Net assets acquired
|
94,156 | 65,909 |
(d)
|
Redevco
transaction
|
Combined
fair value at 100%
|
||||
Current
assets
|
139,983 | |||
Non-current
receivables
|
16,813 | |||
Other
assets
|
170 | |||
Total assets acquired
|
156,966 | |||
Total
liabilities assumed
|
(76,745 | ) | ||
Net assets acquired
|
80,221 |
(vii)
|
Fair
value option for financial
liabilities
|
(viii)
|
Classification
of balance sheet line items
|
(ix)
|
Classification
of statement of income line items
|
.
|
Brazilian
listed companies are required to present the investment in
jointly-controlled associated companies on the proportional consolidation
method. For purposes of US GAAP, the
Company has eliminated the effects of the proportional consolidation and
reflected its interest in the results of investees on a single line item
(Equity in results) in the recast consolidated statement of income under
US GAAP.
|
.
|
Interest
income and interest expense, together with other financial charges, are
displayed within operating income in the statement of income presented in
accordance with Brazilian GAAP. Such amounts have been reclassified to
non-operating income and expenses in the condensed consolidated statement
of income in accordance with US
GAAP.
|
.
|
The net
income differences between Brazilian GAAP and US GAAP (Note 22(b)(i)) were
incorporated in the statement of income in accordance with US
GAAP.
|
.
|
Under
Brazilian GAAP, noncontrolling interests are recorded as minority
interests shown separately from equity. For US GAAP purposes,
noncontrolling interests are reported within equity of
noncontrolling interests in the consolidated financial
statements.
|
(b)
|
Reconciliation
of significant differences between
|
(i)
|
Net
income
|
Nine-month
period ended
|
|||||||||
Note
|
September
30, 2009
|
September
30, 2008
|
|||||||
Net income
under Brazilian GAAP
|
158,218 | 97,076 | |||||||
Revenue recognition - net operating
revenue
|
22(a)(ii)
|
(364,789 | ) | 74,718 | |||||
Revenue recognition - operating
costs
|
22(a)(ii)
|
257,079 | (39,057 | ) | |||||
Amortization of capitalized
interest
|
22(a)(iii)
|
- | (9,356 | ) | |||||
Stock compensation (expense)
reversal
|
22(a)(iv)
|
12,685 | 34,962 | ||||||
Reversal of goodwill amortization of
Alphaville
|
22(a)(vi)
|
- | 6,972 | ||||||
Reversal of negative goodwill
amortization of Redevco and Tenda
|
22(a)(vi)
|
(164,800 | ) | (7,423 | ) | ||||
Business Combination of
Tenda
|
22(a)(vi)
|
(2,185 | ) | - | |||||
Business Combination of
Alphaville
|
22(a)(vi)
|
(13,013 | ) | (14,557 | ) | ||||
Business Combination of
Redevco
|
22(a)(vi)
|
3,169 | - | ||||||
Other
|
(61 | ) | 115 | ||||||
Noncontrolling interests on adjustments
above
|
38,957 | 4,489 | |||||||
Deferred income tax on adjustments
above
|
20,793 | (5,446 | ) | ||||||
Net income
(loss) attributable to Gafisa under US GAAP
|
(53,947 | ) | 142,493 | ||||||
Net income
attributable to noncontrolling interests under US GAAP
|
17,892 | 32,223 | |||||||
Net income
(loss) under US GAAP
|
(36,055 | ) | 174,716 |
Nine-month
period ended
|
|||||||||
Note
|
September
30,2009
|
September
30, 2008
|
|||||||
Weighted-average
number of shares outstanding for the period (in
thousands) (i) Common
shares
|
130,196 | 129,572 | |||||||
Earnings
(loss) per share
|
|||||||||
Common (i)
|
|||||||||
Basic
|
(0.41 | ) | 1.10 | ||||||
Diluted
|
(0.41 | ) | 1.09 | ||||||
Reconciliation
from US GAAP net income (loss) attributable to Gafisa to US GAAP net
income(loss) available to Common shareholders
|
|||||||||
US GAAP net income
(loss)
|
(53,497 | ) | 142,493 | ||||||
US GAAP net
income (loss) available to Common shareholders (basic
earnings)
|
(53,497 | ) | 142,493 | ||||||
Reconciliation
from US GAAP net income (loss) attributable to Gafisa to US GAAP net
income (loss) available to
Common shareholders
|
|||||||||
US GAAP net Income
(loss)
|
(53,497 | ) | 142,493 | ||||||
US GAAP net
income (loss) available to common shareholders (diluted
earnings)
|
(53,497 | ) | 142,493 |
(ii)
|
Shareholders'
equity
|
Note
|
September
30,2009
|
December
31, 2008
|
|||||||
Shareholders'
equity under Brazilian GAAP
|
1,783,476 | 1,612,419 | |||||||
Revenue recognition - net operating
revenue
|
22(a)(ii)
|
(710,424 | ) | (344,635 | ) | ||||
Revenue recognition - operating
costs
|
22(a)(ii)
|
474,406 | 217,327 | ||||||
Capitalized interest
|
22(a)(iii)
|
99,897 | 99,897 | ||||||
Amortization of capitalized
interest
|
22(a)(iii)
|
(94,126 | ) | (94,126 | ) | ||||
Liability-classified stock
options
|
22(a)(iv)
|
(1,869 | ) | (2,221 | ) | ||||
Receivables from clients - SFAS
140
|
22(a)(viii)
|
10,394 | 12,843 | ||||||
Liability assumed - SFAS
140
|
22(a)(viii)
|
(10,394 | ) | (12,843 | ) | ||||
Reversal of goodwill amortization of
Alphaville
|
22(a)(vi)
|
18,234 | 18,234 | ||||||
Reversal of negative goodwill
amortization of Redevco
and Tenda
|
22(a)(vi)
|
(218,627 | ) | (53,819 | ) | ||||
Gain on the transfer of FIT
Residencial
|
22(a)(vi)
|
205,527 | 205,527 | ||||||
Business Combination –
Tenda
|
22(a)(vi)
|
14,219 | 16,404 | ||||||
Business Combination –
Alphaville
|
22(a)(vi)
|
(35,115 | ) | (22,102 | ) | ||||
Business Combination –
Redevco
|
22(a)(vi)
|
3,169 | - | ||||||
Other
|
(524 | ) | 266 | ||||||
Noncontrolling interests on adjustments
above
|
64,062 | 20,237 | |||||||
Deferred income tax on adjustments
above
|
71,223 | 49,687 | |||||||
Shareholders'
equity under US GAAP
|
1,673,528 | 1,723,095 | |||||||
Noncontrolling
interests under US GAAP
|
525,377 | 451,342 | |||||||
Total
shareholder’s equity under US GAAP
|
2,198,905 | 2,174,437 |
September
30,2009
|
December
31,
2008
|
|||||||
(Unaudited)
|
||||||||
At beginning
of the year
|
1,723,095 | 1,481,446 | ||||||
Capital increase, net of issuance
expenses
|
4,380 | 7,671 | ||||||
Net income (loss) attributable to
Gafisa
|
(53,947 | ) | 299,658 | |||||
Minimum mandatory
dividend
|
- | (26,104 | ) | |||||
Noncontrolling
interests
|
525,377 | 411,766- | ||||||
At end of the
year
|
2,198,905 | 2,174,437 |
September
30,2009
|
December
31,
2008
|
|||||||
(Unaudited)
|
(Unaudited)
|
|||||||
Shareholders'
equity
|
||||||||
Common shares,
comprising 130,508,346 shares
outstanding (2008 - 129,962,546)
|
1,203,878 | 1,199,498 | ||||||
Treasury shares
|
(14,595 | ) | (14,595 | ) | ||||
Appropriated retained
earnings
|
484,245 | 538,192 | ||||||
Total Gafisa
shareholder’s equity
|
1,673,528 | 1,723,095 | ||||||
Noncontrolling
interests
|
525,377 | 451,342 | ||||||
Total
shareholders’ equity
|
2,198,905 | 2,174,437 |
(c)
|
US
GAAP supplemental information
|
(i)
|
Recent
US GAAP accounting pronouncements
|
(a)
|
Accounting
pronouncements
adopted
|
(b)
|
Accounting
pronouncements not yet
adopted
|
(ii)
|
Additional
information - stock option plan
|
(iii)
|
Fair
value of financial instruments
|
(a)
|
Adoption
of new US GAAP standard
|
(i)
|
Level 1 - quoted prices are
available in active markets for identical assets or liabilities as of the
reporting date. Active markets are those in which transactions for
the asset or liability occur in sufficient frequency and volume to provide
pricing information on an ongoing basis. Level 1 primarily consists of
financial instruments such as exchange-traded derivatives and listed
equities.
|
(ii)
|
Level 2 - pricing inputs are other
than quoted prices in active markets included in level 1, which are either
directly or indirectly observable as of the reported date. Level 2
includes those financial instruments that are valued using models or other
valuation methodologies. These models are primarily industry-standard
models that consider various assumptions, including quoted forward prices
for commodities, time value, volatility factors, and current market and
contractual prices for the underlying instruments, as well as other
relevant economic measures. Substantially all of these assumptions are
observable in the marketplace throughout the full term of the instrument,
can be derived from observable data or are supported by observable levels
at which transactions are executed in the marketplace. Instruments in this
category include non-exchange-traded derivatives such as over-the-counter
forwards and options.
|
(iii)
|
Level 3 - pricing inputs include
significant inputs that are generally less observable from objective
sources. These inputs may be used with internally developed methodologies
that result in management's best estimate of fair value. At each balance
sheet date, the Company performs an analysis of all instruments subject to
US GAAP and includes in Level 3 all of
those whose fair value is based on significant unobservable
inputs.
|
Fair
value measurements at September 30, 2009
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Quoted prices in active markets for identical assets (Level 1 ) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) |
Total
|
|||||||||||||
Assets
|
||||||||||||||||
Marketable securities
|
- | 733,217 | - | 733,217 | ||||||||||||
Derivatives
|
- | 7,296 | - | 7,296 | ||||||||||||
Liabilities
|
||||||||||||||||
Working capital loans
|
- | 131,305 | - | 131,305 |
(b)
|
Fair
value measurements
|
September
30, 2009
|
December
31, 2008
|
|||||||||||||||
Carrying
amounts
|
Fair
value
|
Carrying
amounts
|
Fair
value
|
|||||||||||||
Financial
assets
|
||||||||||||||||
Cash and cash
equivalents
|
948,350 | 948,350 | 510,504 | 510,504 | ||||||||||||
Restricted cash
|
151,337 | 151,337 | 76,928 | 76,928 | ||||||||||||
Receivables from clients, net -
current
portion
|
1,718,110 | 1,718,110 | 1,060,845 | 1,060,845 | ||||||||||||
Receivables from clients, net -
non current
portion
|
1,662,300 | 1,662,300 | 720,298 | 720,298 | ||||||||||||
Financial
liabilities
|
||||||||||||||||
Loans and financing
|
608,118 | 608,118 | 1,018,208 | 1,010,278 | ||||||||||||
Debentures
|
1,327,861 | 1,327,861 | 506,930 | 506,930 | ||||||||||||
Trade accounts payable
|
194,302 | 194,302 | 103,592 | 103,592 | ||||||||||||
Derivatives
|
7,296 | 7,296 | 86,752 | 86,752 |
(d)
|
US
GAAP condensed consolidated
|
(i)
|
Condensed
consolidated balance
|
September
30, 2009
|
December
31, 2008
|
|||||||
Assets
|
||||||||
Current assets
|
||||||||
Cash and cash
equivalents
|
924,638 | 510,504 | ||||||
Restricted cash
|
151,337 | 76,928 | ||||||
Receivables from
clients
|
1,214,903 | 1,060,845 | ||||||
Properties for sale
|
1,795,580 | 2,058,721 | ||||||
Other accounts
receivable
|
133,709 | 127,150 | ||||||
Dividends receivable
|
1,071 | - | ||||||
Prepaid expenses
|
12,528 | 27,732 | ||||||
Investments
|
67,780 | 49,135 | ||||||
Property and equipment
|
57,624 | 50,852 | ||||||
Intangibles
|
216,708 | 219,615 | ||||||
Other assets
|
||||||||
Receivables from
clients
|
1,513,584 | 720,298 | ||||||
Properties for sale
|
396,992 | 149,403 | ||||||
Deferred taxes
|
- | 35,067 | ||||||
Other
|
67,462 | 93,153 | ||||||
Total
assets
|
6,553,916 | 5,179,403 | ||||||
Liabilities
and shareholders' equity
|
||||||||
Current liabilities
|
||||||||
Short-term debt, including current
portion of long-term debt
|
578,235 | 430,853 | ||||||
Debentures
|
80,781 | 64,930 | ||||||
Obligations for purchase of
land
|
296,505 | 278,745 | ||||||
Materials and services
suppliers
|
185,366 | 103,592 | ||||||
Taxes and labor
contributions
|
135,831 | 112,729 | ||||||
Advances from clients - real estate and
services
|
313,330 | 176,958 | ||||||
Credit assignments
|
133,782 | 46,844 | ||||||
Acquisition of
investments
|
26,976 | 25,296 | ||||||
Dividends payable
|
21,106 | 26,106 | ||||||
Others
|
111,041 | 85,445 | ||||||
Long-term liabilities
|
||||||||
Loans
|
590,431 | 587,355 | ||||||
Debentures
|
1,244,000 | 442,000 | ||||||
Deferred income tax
|
37,220 | - | ||||||
Obligations for purchase of
land
|
149,979 | 225,639 | ||||||
Others
|
450,428 | 398,474 | ||||||
Shareholders'
equity
|
||||||||
Total Gafisa shareholders’
equity
|
1,673,528 | 1,723,095 | ||||||
Noncontrolling
interests
|
525,377 | 451,342 | ||||||
Total shareholders’
equity
|
2,198,905 | 2,174,437 | ||||||
Total
liabilities and shareholders' equity
|
6,553,916 | 5,179,403 |
(ii)
|
Condensed
consolidated statements of
|
September
30, 2009
|
September
30, 2008
|
|||||||
Gross
operating revenue
|
||||||||
Real estate development and
sales
|
1,709,705 | 1,173,676 | ||||||
Construction and services
rendered
|
30,687 | 13,356 | ||||||
Taxes on services and
revenues
|
(65,740 | ) | (38,094 | ) | ||||
Net operating
revenue
|
1,674,652 | 1,148,938 | ||||||
Operating
costs (sales and services)
|
(1,198,047 | ) | (799,519 | ) | ||||
Gross
profit
|
476,605 | 349,419 | ||||||
Operating
expenses
|
||||||||
Selling, general and
administrative
|
(288,947 | ) | (154,133 | ) | ||||
Other
|
(142,332 | ) | (43,017 | ) | ||||
Operating
income (loss)
|
45,326 | 152,269 | ||||||
Non-operating
income (expenses)
|
||||||||
Financial income
|
103,607 | 62,067 | ||||||
Financial expenses
|
(158,801 | ) | (23,078 | ) | ||||
Income (loss)
before income tax, equity in results and noncontrolling
interests
|
(9,868 | ) | 191,258 | |||||
Taxes on
income
|
||||||||
Current
|
(23,643 | ) | (32,598 | ) | ||||
Deferred
|
(13,607 | ) | (11,650 | ) | ||||
Income tax and social contribution
expense
|
(37,250 | ) | (44,248 | ) | ||||
Income before
equity in results and noncontrolling interests
|
(47,118 | ) | 147,010 | |||||
Equity in results
|
11,063 | 27,688 | ||||||
Net income
(loss)
|
(36,055 | ) | 174,698 | |||||
Less: Net income attributable to the
noncontrolling interests
|
(17,892 | ) | (32,205 | ) | ||||
Net income
(loss) attributable to Gafisa
|
(53,947 | ) | 142,493 | |||||
Reconciliation
from US GAAP net income (loss) to US GAAP net income (loss) available
to Common
shareholders
|
||||||||
US GAAP net income
(loss)
|
(53,947 | ) | 142,493 | |||||
US GAAP net
income (loss) available to common shareholders (Basic
earnings)
|
(53,947 | ) | 142,493 | |||||
Reconciliation
from US GAAP net income (loss) to US GAAP net income (loss) available
to Common
shareholders
|
||||||||
US GAAP net income
(loss)
|
(53,947 | ) | 142,493 | |||||
US GAAP net
income (loss) available to Common shareholders (Diluted
earnings)
|
(53,947 | ) | 142,493 |
(iii)
|
Additional
information - taxes
|
September
30, 2009
|
December
31, 2008
|
|||||||
At January
1
|
(10,830 | ) | (16,407 | ) | ||||
Valuation allowance - relates to
jointly-controlled subsidiaries
subject to the taxable profit regime
|
(4,452 | ) | 5,577 | |||||
At the end of
nine-month period or year
|
(15,282 | ) | (10,830 | ) |
(iv)
|
Statement
of comprehensive income
|
Condensed
Consolidated Balance Sheets as of September 30, 2009 (unaudited) and
December 31, 2008
|
F-79
|
Condensed
Consolidated Unaudited Interim Statements of Operations for the nine
months ended September 30, 2009 and 2008
|
F-80
|
Condensed
Consolidated Unaudited Statements of Changes in Shareholders’ Equity for
the nine months ended September 30, 2009
|
F-81
|
Condensed
Consolidated Unaudited Interim Statements of Cash Flows for the nine
months ended September 2009 and 2008
|
F-82
|
Notes to the
Consolidated Condensed Unaudited Interim Financial Statements as of
September 30, 2009 and December 31, 2008 and for the nine-month periods
ended September 30, 2009 and 2008 of Construtora Tenda
S.A.
|
F-83
|
Notes
|
09.30.2009
|
12.31.2008
|
||||||||||
(unaudited)
|
||||||||||||
Current
assets
|
||||||||||||
Cash and cash
equivalents
|
3
|
492,233 | 181,661 | |||||||||
Restricted
credits
|
4
|
82,330 | 20,226 | |||||||||
Receivables from
clients
|
5
|
521,839 | 142,689 | |||||||||
Properties for
sale
|
6
|
357,130 | 401,852 | |||||||||
Advances
|
7
|
44,892 | 33,842 | |||||||||
Recoverable
taxes
|
13,054 | 6,940 | ||||||||||
Deferred
taxes
|
19
|
2,879 | 2,879 | |||||||||
Deferred selling
expenses
|
4,784 | 8,011 | ||||||||||
Others
|
2,194 | 607 | ||||||||||
Total current
assets
|
1,521,335 | 798,707 | ||||||||||
Non-current
assets
|
||||||||||||
Receivables from
clients
|
5
|
537,291 | 422,887 | |||||||||
Properties for
sale
|
6
|
105,403 | 148,137 | |||||||||
Deferred
taxes
|
19
|
117,624 | 95,167 | |||||||||
Escrow
deposits
|
8
|
8,250 | 7,977 | |||||||||
Deferred selling
expenses
|
7,384 | 1,719 | ||||||||||
Related
parties
|
9
|
46,419 | 47,469 | |||||||||
Others
|
12,744 | 1,470 | ||||||||||
835,115 | 724,826 | |||||||||||
Property and
equipment, net
|
11
|
21,755 | 17,276 | |||||||||
Intangible
assets
|
12
|
5,467 | 3,221 | |||||||||
27,222 | 20,497 | |||||||||||
Total non-current
assets
|
862,337 | 745,323 | ||||||||||
Total
assets
|
2,383,672 | 1,544,030 |
Notes
|
09.30.2009
|
12.31.2008
|
||||||||||
(unaudited)
|
||||||||||||
Current
liabilities
|
||||||||||||
Loans and
financing
|
13
|
71,585 | 52,584 | |||||||||
Debentures
|
14
|
19,861 | - | |||||||||
Suppliers
|
66,536 | 31,857 | ||||||||||
Labor and tax
obligations
|
24,978 | 17,805 | ||||||||||
Taxes
payable
|
15
|
2,779 | 2,698 | |||||||||
Advances from
clients
|
16
|
46,764 | 52,063 | |||||||||
Rescision
reimbursement payable and provision
|
17
|
27,410 | 28,191 | |||||||||
Obligations for
purchase of land
|
18
|
45,043 | 53,336 | |||||||||
Deferred
taxes
|
19
|
52,375 | 24,224 | |||||||||
Related
parties
|
9
|
4,097 | 1,334 | |||||||||
Others
|
20,458 | 2,500 | ||||||||||
Total current
liabilities
|
381,886 | 266,592 | ||||||||||
Non-current
liabilities
|
||||||||||||
Loans and
financing
|
13
|
55,584 | 73,866 | |||||||||
Debentures
|
14
|
600,000 | - | |||||||||
Obligations for
purchase of land
|
18
|
12,633 | 15,312 | |||||||||
Provision for
contingencies
|
20
|
25,829 | 26,840 | |||||||||
Taxes
payable
|
15
|
12,882 | 14,272 | |||||||||
Deferred
taxes
|
19
|
116,343 | 83,703 | |||||||||
Related
parties
|
9
|
44,637 | - | |||||||||
Others
|
12,505 | 1,210 | ||||||||||
Total non-current
liabilities
|
880,413 | 215,203 | ||||||||||
Non-controlling
interests
|
- | 21 | ||||||||||
Shareholders'
equity:
|
||||||||||||
Capital
Stock
|
21.1 | 755,236 | 755,236 | |||||||||
Capital
reserves
|
21.2 | 376,470 | 374,591 | |||||||||
Retained
deficit
|
(10,333 | ) | (67,613 | ) | ||||||||
1,121,373 | 1,062,214 | |||||||||||
Total liabilities and
shareholders' equity
|
2,383,672 | 1,544,030 | ||||||||||
The accompanying notes are
an integral part of these financial
statements.
|
09.30.2009
|
09.30.2008
|
|||||||
(unaudited)
|
(unaudited)
|
|||||||
Gross operating
revenue
|
||||||||
( + ) Real estate development and
sales
|
751,080 | 332,782 | ||||||
( - ) Taxes on services and
revenues
|
(27,943 | ) | (15,027 | ) | ||||
( = ) Net operating
revenue
|
723,137 | 317,755 | ||||||
Operating
costs
|
||||||||
( - ) Real estate
development costs
|
(493,401 | ) | (213,437 | ) | ||||
( = ) Gross
profit
|
229,736 | 104,318 | ||||||
(+/-) Income
(expenses)
|
||||||||
Administrative
expenses
|
(80,336 | ) | (69,300 | ) | ||||
Selling
expenses
|
(78,897 | ) | (59,175 | ) | ||||
Financial
income
|
1,387 | 7,456 | ||||||
Other
operating (expenses) income
|
109 | (29,149 | ) | |||||
(157,737 | ) | (150,168 | ) | |||||
( = ) Income before provision for
taxes
|
71,999 | (45,850 | ) | |||||
(-) Provision for
taxes and social contributions - current and
deferred
|
(16,288 | ) | (11,164 | ) | ||||
( = ) Net profit
(loss)
|
55,711 | (57,014 | ) |
Capital
Reserves
|
||||||||||||||||||||||||||||
Capital
Stock
|
Special
Goodwill
|
FIT
Incorporation
|
Awarding
Options
|
Total
|
Retained
Deficit
|
Total
|
||||||||||||||||||||||
At
December 31, 2008
|
755,236 | 20,381 | 348,705 | 5,505 | 374,591 | (67,613 | ) | 1,062,214 | ||||||||||||||||||||
Legal reserves
constitution - Awarding options recognized
|
3,448 | 3,448 | - | 3,448 | ||||||||||||||||||||||||
Capital
reserves reversion - Awarding Options canceled
|
(1,569 | ) | (1,569 | ) | 1,569 | - | ||||||||||||||||||||||
Current
profits
|
- | 55,711 | 55,711 | |||||||||||||||||||||||||
- | ||||||||||||||||||||||||||||
At
September 30, 2009
|
755,236 | 20,381 | 348,705 | 7,384 | 376,470 | (10,333 | ) | 1,121,373 |
2009
|
2008
|
|||||||
(unaudited)
|
(unaudited)
|
|||||||
Cash flows from operating
activities
|
||||||||
Profit
(Loss):
|
55,711 | (57,014 | ) | |||||
Expenses (income) not affecting
cash and cash equivalents
|
||||||||
Depreciation
|
7,170 | 1,838 | ||||||
Amortization
|
713 | - | ||||||
Decrease of non current assets -
Property and equipment
|
50 | 129 | ||||||
Provision for
contingencies
|
(1,011 | ) | 15,474 | |||||
Provision for Bad
Debit
|
- | 10,974 | ||||||
Interests of Federal Tax
Installments
|
2,148 | 763 | ||||||
Deferred
Tax
|
38,334 | 6,481 | ||||||
Awarding Options
recognized
|
3,448 | 3,082 | ||||||
Interests of loans and
financing
|
34,158 | 4,663 | ||||||
Assets and Liabilities
changes
|
||||||||
Receivables from
clients
|
(493,554 | ) | (324,568 | ) | ||||
Properties for
sale
|
87,456 | (88,059 | ) | |||||
Other
credits
|
(11,050 | ) | (19,536 | ) | ||||
Deferred
selling expenses
|
(2,438 | ) | (5,478 | ) | ||||
Recoverable
taxes
|
(6,114 | ) | (3,587 | ) | ||||
Restricted
credits
|
(62,104 | ) | - | |||||
Other
assets
|
(13,134 | ) | 2,631 | |||||
Suppliers
|
34,679 | 21,929 | ||||||
Labor
and tax obligations
|
7,173 | 3,797 | ||||||
Advances
from clients
|
(5,299 | ) | (29,041 | ) | ||||
Accounts
payable
|
73,088 | 44,166 | ||||||
Obligations
for purchase of land
|
(10,972 | ) | 9,555 | |||||
PIS/COFINS/IRPJ/CSLL - federal
installments
|
(3,457 | ) | (1,882 | ) | ||||
Related Parties - Tenda
Engenharia
|
3,813 | - | ||||||
Effect of changes to Law 11.638
and Law 11.941/09
|
- | 22,401 | ||||||
Net cash used in operating
activities
|
(261,192 | ) | (381,281 | ) | ||||
From investing
activities
|
||||||||
Property and equipment
increase
|
(11,699 | ) | (950 | ) | ||||
Intangible
increase
|
(2,959 | ) | (1,389 | ) | ||||
Net cash used in investing
activities
|
(14,658 | ) | (2,339 | ) | ||||
From financing
activities
|
||||||||
Loan and Financing, net of
amortization
|
(13,578 | ) | 76,103 | |||||
Debentures
|
600,000 | - | ||||||
Net cash provided by financing
activities
|
586,422 | 76,103 | ||||||
Increase (decrease) in cash and
equivalents
|
310,572 | (307,517 | ) | |||||
Cash and cash
equivalents
|
||||||||
At the beginning of the
period
|
181,661 | 400,512 | ||||||
At the end of the
period
|
492,233 | 92,995 |
Loss for the nine months ended
September 30,
2008
|
|
Balances before the changes
introduced by Law No. 11,638/07 and Law No.
11,941/09
|
(36,498)
|
Adjustments to present value
introduced by CPC 12
|
(3,517)
|
Effect on revenue of recognition
of barter transactions at fair value introduced by
OCPC01
|
12,244
|
Effect on cost of recognition of
barter transactions at fair value introduced by
OCPC01
|
(22,107)
|
Stock Option plan recognition
according to CPC 10
|
(3,082)
|
Analysis of recovery of amounts
recorded in assets - Impairment introduced by CPC
01
|
(3,010)
|
Deferred taxes on the above
adjustments and equalization of criterion
|
(1,044)
|
Net effects arising from the full
application of Law No. 11,638/07 and Law No.
11,941/09
|
(20,516)
|
Balances with the full application
of Law No. 11,638/07 and Law No. 11,941/09
|
(57,014)
|
CPC
|
Resolution
|
Objective
|
CPC 15 – Business
combinations
|
CVM Resolution
580
|
Prescribes the accounting
treatment, in business combinations, for recognizing and measuring assets
acquired and liabilities assumed, goodwill based on expected future
earnings, and the minimum information to be disclosed by the Company in
these operations.
|
CPC 20 – Borrowing
Costs
|
CVM Resolution
576
|
Establishes the treatment for
accounting for borrowing costs and the possibility of including them in
the cost of the asset when attributable to the acquisition, construction
or production of an asset.
|
CPC 21 – Interim Financial
Reporting
|
CVM Resolution
581
|
Establishes the minimum components
of an interim financial report and the recognition and measurement
principles for complete or condensed interim financial
reports.
|
CPC 22 – Segment
Reporting
|
CVM Resolution
582
|
Specifies forms for disclosing
information on operating segments in the annual financial statements in
order to enable users of financial statements to evaluate the nature and
financial effects of the business activities in which they are involved
and the economic environment where they operate.
|
CPC 23 – Accounting
Policies, Changes in Accounting Estimates and
Errors
|
CVM Resolution
592
|
Defines the criteria for selecting
and applying accounting policies, and the accounting treatment and
disclosure of changes in accounting policies, changes in accounting
estimates and errors.
|
CPC 24 – Subsequent
Events
|
CVM Resolution
593
|
Establishes when the entity must
adjust its financial statements and the information to be disclosed on
events after the reporting period.
|
CPC 25 – Provisions, Contingent
Liabilities and Contingent Assets
|
CVM Resolution
594
|
Establishes the application of
appropriate recognition criteria and measurement bases to
provisions, contingent liabilities and contingent assets, as well as the
disclosure of sufficient information in the notes to enable users to
understand their nature, timing and amount.
|
CPC 26 – Presentation of Financial
Statements
|
CVM Resolution
595
|
Sets overall requirements for the
presentation of financial statements, guidelines for their structure, and
minimum requirements for their content.
|
CPC 27 – Property, Plant and
Equipment
|
CVM Resolution
583
|
Prescribes the accounting
treatment for property, plant and equipment, including as to recognition,
measurement, depreciation and impairment losses.
|
CPC 28 – Investment
Property
|
CVM Resolution
584
|
Prescribes the accounting
treatment for investment properties and the related disclosure
requirements.
|
CPC 31 – Noncurrent Assets Held
for Sale and Discontinued
Operations
|
CVM Resolution
598
|
Establishes the accounting for
noncurrent assets held for sale (put up for sale) and the presentation and
disclosure of discontinued operations.
|
CPC 32 – Income
Taxes
|
CVM Resolution
599
|
Prescribes the accounting
treatment for accounting for the current and future tax consequences of
income taxes.
|
CPC 33 – Employee
Benefits
|
CVM Resolution
600
|
Prescribes the accounting and
disclosure of employee
benefits.
|
2.2.
|
Significant accounting
practices
|
September 30,
2009
|
December 31,
2008
|
|
Cash and
banks
|
48,767
|
26,690
|
Resale/repurchase
commitments
|
49,708
|
-
|
Bank certificates of deposit -
CDBs
|
29,831
|
-
|
Investment funds
(a)
|
86,495
|
154,971
|
Receivables from debentures
(b)
|
261,330
|
-
|
Other
|
16,102
|
-
|
Total
|
492,233
|
181,661
|
(a)
|
Investments in investment funds
refer to investments made through fixed-income funds, which quotes are
valued through the application of resources exclusively in government
securities, indexed to fixed rates, floating rates and/or price
indexes.
|
(b)
|
Receivables from debentures refer
to amounts released in restricted accounts and assigned to the
debentureholder, which will be free for use as new floating guarantees are
allocated. Amounts are released as additional guarantees are confirmed by
the fiduciary agent engaged for the
transaction.
|
September 30,
2009
|
December 31,
2008
|
|
Restricted
credits
|
82,330
|
20,226
|
Total
|
82,330
|
20,226
|
September 30,
2009
|
December 31,
2008
|
|
Receivables from clients
(a)
|
1,110,759
|
609,476
|
Allowance for doubtful accounts
(b)
|
(18,815)
|
(18,815)
|
Provision for rescission
(c)
|
(19,121)
|
(11,197)
|
Postdated
checks
|
733
|
536
|
Adjustment to present
value
(d)
|
(14,426)
|
(14,424)
|
Total
|
1,059,130
|
565,576
|
Current
|
521,839
|
142,689
|
Noncurrent
|
537,291
|
422,887
|
(a)
|
As mentioned in Note 2.2.4, total
receivables from clients related to real estate units sold and not yet
completed is not reflected in the financial statements, once its recording
is limited to the portion of revenue recognized in the books, net of the
portion already received;
|
(b)
|
Allowance set up to cover
occasional losses in connection with
clients.
|
(c)
|
Provision set up to cover
occasional losses in connection with clients with installments in arrears;
its calculation took into consideration the recovery of the respective
real estate from defaulting clients and presented the following
movements:
|
Units
|
R$
|
|
Balance at 12/31/08
|
223
|
(11,197)
|
(-) Rescission
made
|
(373)
|
6,771
|
(+) New
provisions
|
976
|
(14,695)
|
(=) Balance at 09/30/09
|
826
|
(19,121)
|
(d)
|
Adjustment to present value
calculated based on uncompleted units, according to CPC 12 and OCPC
01.
|
September 30,
2009
|
December 31,
2008
|
|
Land for future
development
|
181,682
|
197,058
|
Properties under
construction
|
249,790
|
344,196
|
Units
completed
|
32,988
|
11,141
|
Provision for impairment of assets
– land
|
(1,927)
|
(1,927)
|
Adjustment to present value of
accounts payable of land
|
-
|
(479)
|
Total
|
462,533
|
549,989
|
Current
|
357,130
|
401,852
|
Noncurrent
|
105,403
|
148,137
|
September 30,
2009
|
December 31,
2008
|
|
Suppliers
(a)
|
15,973
|
13,503
|
Land (b)
|
19,522
|
18,975
|
Construction companies /
Franchisees (c)
|
767
|
5,058
|
Other
receivables
|
12,928
|
604
|
Provision for impairment of assets
(d)
|
(4,298)
|
(4,298)
|
Total
|
44,892
|
33,842
|
September 30,
2009
|
December 31,
2008
|
|
Tax (a)
|
8,250
|
7,977
|
Total
|
8,250
|
7,977
|
September 30,
2009
|
December 31,
2008
|
|
Asset
|
||
Current account with
partners
|
46,419
|
47,469
|
Liability
|
||
Current account with
partners
|
4,097
|
1,334
|
Accounts payable –
equity interest (a)
|
44,637
|
-
|
10.
|
Investments
|
Entity
|
Sharing - %
|
Investments
|
Equity
|
Income
Statement
|
Income Statement
Sharing
|
FIT Roland
Garros
|
99,99%
|
4.810
|
(4.811)
|
61
|
61
|
FIT Citta
Imbuí
|
50,00%
|
3.793
|
(7.587)
|
3.051
|
1.526
|
FIT Coqueiro
I
|
80,00%
|
6.419
|
(8.022)
|
2.064
|
1.650
|
FIT
Guarapiranga
|
55,00%
|
1.597
|
(2.904)
|
(31)
|
(17)
|
FIT Maria
Inês
|
60,00%
|
3.539
|
(5.899)
|
3.289
|
1.973
|
FIT Jd.
Botânico
|
55,00%
|
8.566
|
(15.574)
|
6.018
|
3.310
|
Klabin Segall Fit 1
SPE
|
50,00%
|
2.549
|
(5.098)
|
(0)
|
(0)
|
FIT Planeta
Zôo/Ipitanga
|
50,00%
|
1.281
|
(2.562)
|
(96)
|
(48)
|
Parque dos
Pássaros
|
50,00%
|
(416)
|
833
|
216
|
108
|
FIT Campos
Velho
|
80,00%
|
1.228
|
(1.535)
|
840
|
672
|
FIT Ciane
|
99,00%
|
524
|
(529)
|
(143)
|
(142)
|
FIT Mirante do
Sol
|
99,99%
|
1.562
|
(1.563)
|
539
|
539
|
FIT
Barcelona
|
60,00%
|
(2.472)
|
4.120
|
(658)
|
(395)
|
FIT Campos dos
Goytacazes
|
90,00%
|
2.580
|
(2.866)
|
1.092
|
982
|
FIT 08 SPE
|
70,00%
|
(10)
|
14
|
(12)
|
(8)
|
FIT 09 SPE
|
75,00%
|
832
|
(1.109)
|
(94)
|
(72)
|
FIT 10 SPE
|
60,00%
|
(930)
|
1.551
|
349
|
210
|
FIT 11 SPE
|
70,00%
|
719
|
(1.028)
|
(26)
|
(18)
|
FIT 12 SPE
|
99,99%
|
(489)
|
489
|
(407)
|
(406)
|
FIT 13 SPE
|
99,99%
|
7.486
|
(7.486)
|
183
|
183
|
FIT 14 SPE
|
80,00%
|
5.119
|
(6.399)
|
(726)
|
(581)
|
FIT 15 SPE - Wenceslau
Braz
|
70,00%
|
144
|
(206)
|
807
|
565
|
FIT 06 SPE
|
99,99%
|
(1)
|
1
|
(2)
|
(2)
|
FIT 07 SPE
|
50,00%
|
(415)
|
830
|
(373)
|
(186)
|
FIT 18 SPE
|
99,99%
|
(71)
|
71
|
(1)
|
(1)
|
FIT 19 SPE
|
55,00%
|
(1.221)
|
2.219
|
(365)
|
(201)
|
FIT 21 SPE
|
90,00%
|
1.148
|
(1.276)
|
(116)
|
(104)
|
FIT 22 SPE
|
99,99%
|
(148)
|
148
|
(69)
|
(69)
|
FIT 23 SPE
|
99,99%
|
(2)
|
2
|
(2)
|
(2)
|
FIT 24 SPE
|
90,00%
|
(2.366)
|
2.629
|
(320)
|
(288)
|
FIT 25 SPE
|
80,00%
|
43
|
(53)
|
54
|
43
|
FIT 16 SPE
|
70,00%
|
(2.325)
|
3.321
|
(2.406)
|
(1.684)
|
FIT 17 SPE
|
99,99%
|
(2)
|
2
|
(0)
|
(0)
|
FIT 28 SPE
|
99,99%
|
(28)
|
28
|
(1)
|
(1)
|
FIT 29 SPE
|
99,99%
|
(80)
|
80
|
(36)
|
(36)
|
FIT 30 SPE
|
99,99%
|
(1)
|
1
|
-
|
-
|
FIT 31 SPE
|
70,00%
|
(669)
|
955
|
(869)
|
(608)
|
FIT 32 SPE
|
99,99%
|
691
|
(691)
|
(7)
|
(7)
|
FIT 33 SPE
|
99,99%
|
(527)
|
527
|
(417)
|
(417)
|
FIT 34 SPE
|
70,00%
|
(52)
|
74
|
(28)
|
(20)
|
FIT 35 SPE
|
99,99%
|
4.526
|
(4.526)
|
40
|
40
|
FIT 36 SPE
|
99,99%
|
1.750
|
(1.750)
|
(484)
|
(484)
|
FIT 37 SPE
|
99,99%
|
4.057
|
(4.057)
|
1.681
|
1.681
|
FIT 38 SPE
|
99,99%
|
1.137
|
(1.138)
|
(49)
|
(49)
|
FIT 39 SPE
|
99,99%
|
1.829
|
(1.829)
|
(118)
|
(118)
|
FIT 40 SPE
|
99,99%
|
3.817
|
(3.817)
|
(1)
|
(1)
|
FIT 41 SPE
|
99,99%
|
(62)
|
62
|
(1)
|
(1)
|
FIT 42 SPE
|
99,99%
|
939
|
(939)
|
(23)
|
(23)
|
FGM Incorporações
S.A
|
51,00%
|
1.395
|
(2.795)
|
(136)
|
(69)
|
Cipesa Projeto
02
|
50,00%
|
(329)
|
658
|
134
|
67
|
FIT 43 SPE
|
99,99%
|
(1)
|
1
|
-
|
-
|
FIT 26 SPE
|
99,99%
|
(9)
|
9
|
(8)
|
(8)
|
FIT 27 SPE
|
99,99%
|
(1)
|
1
|
(0)
|
(0)
|
FIT João de
Alencar
|
99,99%
|
(9)
|
9
|
(9)
|
(9)
|
FIT 20 SPE
|
99,99%
|
(3)
|
3
|
(0)
|
(0)
|
Cittá
Itapoan
|
50,00%
|
(582)
|
1.164
|
412
|
206
|
Bairro Novo
|
99,99%
|
49.045
|
(49.050)
|
4.059
|
4.058
|
Spe Guapura
|
50,00%
|
280
|
(561)
|
-
|
-
|
Spe Villa
Park
|
99,99%
|
13.392
|
(13.393)
|
4.357
|
4.357
|
Spe
Itaquera
|
99,99%
|
3.490
|
(3.490)
|
2.440
|
2.440
|
Spe Osasco
|
99,99%
|
12.909
|
(12.911)
|
6.469
|
6.468
|
Spe
Valência
|
99,99%
|
1.506
|
(1.507)
|
693
|
693
|
Spe Salvador
Dali
|
99,99%
|
5.517
|
(5.518)
|
1.539
|
1.539
|
Spe
Guaianazes
|
99,99%
|
950
|
(950)
|
20
|
20
|
Spe Jardim São
Luiz
|
99,99%
|
7.070
|
(7.070)
|
4.280
|
4.280
|
TNI
|
99,99%
|
1
|
(1)
|
(0)
|
(0)
|
Cittá Ville
|
50,00%
|
3.269
|
(6.537)
|
1.396
|
698
|
Total
|
158.288
|
(179.175)
|
38.049
|
32.294
|
|
Provision for shareholders’
deficit
|
14.169
|
||||
Total
|
172.457
|
11.
|
Property and equipment,
net
|
Annual depreciation rate
(%)
|
September 30,
2009
|
December 31,
2008
|
|
Machinery and
equipment
|
10
|
2,285
|
-
|
Furniture and
fixtures
|
10
|
3,557
|
13,560
|
Vehicles
|
20
|
988
|
988
|
IT
equipment
|
20
|
4,350
|
4,218
|
Leasehold
improvements
|
9,136
|
6,257
|
Other
|
11,110
|
178
|
|
Total property and
equipment
|
31,426
|
25,201
|
|
( - ) Accumulated
depreciation
|
(9,671)
|
(7,925)
|
|
Total property and equipment,
net
|
21,755
|
17,276
|
12.
|
Intangible
assets
|
September 30,
2009
|
December 31,
2008
|
|
Software
|
6,904
|
3,990
|
Other
|
9
|
8
|
( - ) Accumulated
amortization
|
(1,446)
|
(777)
|
Total
|
5,467
|
3,221
|
13.
|
Loans and
financing
|
Annual interest
rates
|
September 30,
2009
|
December 31,
2008
|
|
Working capital (a) | 100% to 105% of CDI or CETIP + 3% to 4% p.a.. |
64,947
|
62,840
|
Real estate financing
(b)
|
10% to 11.4% p.a. or TR + 8.33%
p.a.
|
62,222
|
57,432
|
Others
|
-
|
6,178
|
|
Total
|
127,169
|
126,450
|
|
(-) Current
|
71,585
|
52,584
|
|
Noncurrent
|
55.584
|
73,866
|
|
(a)
|
Loans are guaranteed by promissory
notes or own receivables;
|
|
(b)
|
Financings are guaranteed by
mortgage on the land.
|
14.
|
Debentures
|
September 30,
2009
|
December 31,
2008
|
|
Debentures
|
619,861
|
-
|
Total
|
619,861
|
-
|
(-) Current
|
19,861
|
-
|
Noncurrent
|
600,000
|
-
|
15.
|
Taxes
payable
|
September 30,
2009
|
December 31,
2008
|
|
Federal tax
installments
(a)
|
7,411
|
8,993
|
COFINS (b)
|
8,250
|
7,977
|
Total
|
15,661
|
16,970
|
Current
|
2,779
|
2,698
|
Noncurrent
|
12,882
|
14,272
|
|
(a)
|
Taxes are being paid in 60 monthly
installments, adjusted by the Selic (Central Bank overnight
rate);
|
|
(b)
|
The Company is challenging the
constitutionality of federal taxes related to the Contribution for Social
Security Financing (COFINS), particularly
|
|
|
regarding the rate increase, in
relation to which the Company chose to make escrow deposit at
the original amounts owed from March 2000 to January 2004, as mentioned in
Note 8.
|
16.
|
Advances from
clients
|
September 30,
2009
|
December 31,
2008
|
|
Receipts in excess of the
appropriated revenue ( 2.2.1)
|
15,388
|
5,572
|
Land swap transactions stated at
fair value
|
31,376
|
46,491
|
Total
|
46,764
|
52,063
|
17.
|
Rescission reimbursement payable
and provisions
|
September 30,
2009
|
December 31,
2008
|
|
Rescission reimbursement payable
(a)
|
20,756
|
24,620
|
Provision for rescission and
annulments of sales contract (b)
|
6,654
|
3,571
|
Total
|
27,410
|
28,191
|
(a)
|
Accounts
payable, which have specific settlement conditions for each case, the
average term being 5 months for payment.
|
(b)
|
The set up of
the provision takes into consideration the prospect of returning the
amount received to clients according to contractual clauses.
|
18.
|
Obligations for purchase of
land
|
September 30,
2009
|
December 31,
2008
|
|
Land
payable
|
57,676
|
68,648
|
Total
|
57,676
|
68,648
|
Current
|
45,043
|
53,336
|
Noncurrent
|
12,633
|
15,312
|
2009
|
|
2010
|
6,912
|
2011
|
5,721
|
TOTAL
|
12,633
|
19.
|
Deferred
taxes
|
September 30,
2009
|
December 31,
2008
|
|
Tax loss
carryforwards
|
86,886
|
65,956
|
Credit – Merger EDSP92 (a)
|
11,549
|
14,607
|
Temporary
provisions:
|
||
Contingencies
|
15,670
|
11,085
|
Provision for
losses
|
6,398
|
6,398
|
Total
|
120,503
|
98,046
|
Current
|
2,879
|
2,879
|
Noncurrent
|
117,624
|
95,167
|
|
(a)
|
Tax credit arising from goodwill
on merger of EDSP92, calculated by a book value appraisal report,
amounting to R$20,381, which was used to set up a special goodwill
reserve. The goodwill originally recorded by EDSP92 arising from the
purchase of interest by the Company on June 30, 2007, justified based on expectation
of future profitability, according to the discounted cash flow modeling
and a discount rate at 12.4% p.a., is being amortized monthly over 5
years.
|
IRPJ /
CSLL
|
|
2009
|
2.879
|
2010
|
104.378
|
2011
|
13.246
|
TOTAL
|
120.503
|
September 30,
2009
|
December 31,
2008
|
|
Criteria difference for
appropriation of result – taxable income
|
||
PIS and
COFINS
|
35,196
|
24,123
|
IRPJ and
CSLL
|
116,485
|
80,466
|
Criteria difference for
appropriation of result – presumed profit
|
17,037
|
3,338
|
Total
|
168,718
|
107,927
|
Current
|
52,375
|
24,224
|
Noncurrent
|
116,343
|
83,703
|
20.
|
Contingencies
|
September 30,
2009
|
December 31,
2008
|
|
Civil
|
10,979
|
12,433
|
Labor
|
6,517
|
5,317
|
Tax and social
security
|
8,333
|
8,730
|
Others
|
-
|
360
|
Total
|
25,829
|
26,840
|
September 30,
2009
|
|
Beginning
balance
|
26,840
|
Provision
(write-off)
|
(1,011)
|
Ending
balance
|
25,829
|
21.
|
Shareholders’
equity
|
22.
|
Insurance
|
23.
|
Benefits to
employees
|
24.
|
Financial
instruments
|
25.
|
Stock option
plan
|
Number of
options
|
Weighted average
of exercise price
|
|
Oustanding options at
12.31.08
|
2,070,000
|
7.20
|
Options
granted
|
5,979,718
|
1.27
|
Options
exercised
|
(151,917)
|
2.63
|
Options
cancelled
|
(1,760,583)
|
5.16
|
Outstanding options at
09.30.09
|
6,137,218
|
1.52
|
26.
|
Compensation of management and
board members
|
27.
|
Subsequent
Events
|
28.
|
Supplemental Information - Summary
of Principal Differences between Brazilian GAAP and US
GAAP
|
Nine-month period ended
September 30,
2009
|
|
Basic
numerator
|
Common
|
Dividends
proposed
|
-
|
US GAAP allocated
losses
|
(10,742)
|
US GAAP allocated losses for
common shareholders
|
(10,742)
|
Basic denominator (in thousand of
shares)
|
|
Weighted-average number of
shares
|
400,652
|
Basic loss per thousand shares -
US GAAP - R$
|
(0.027)
|
Diluted
numerator
|
|
Dividends
proposed
|
-
|
US GAAP allocated
losses
|
(10,742)
|
US GAAP allocated losses for
common shareholders
|
(10,742)
|
Diluted denominator (in thousand
of shares)
|
|
Weighted average number of
shares
|
400,652
|
Stock
options
|
-
|
Diluted weighted-average number of
shares
|
400,652
|
Diluted loss per thousand shares -
US GAAP - R$
|
(0.027)
|
|
b.
|
Reconciliation of significant
differences between Brazilian GAAP and US
GAAP
|
|
(i)
|
Net
income
|
Note
|
Nine-month
period ended September 30, 2009
|
|
Net income under Brazilian
GAAP
|
-
|
55,711
|
Revenue recognition - net
operating revenue
|
28(a) (ii)
|
(347,617)
|
Revenue recognition - operating
costs
|
28(a) (ii)
|
237,222
|
Liability-classified stock
options
|
28(a) (iii)
|
5,127
|
Business
combination
|
28(a) (v)
|
(1,442)
|
Deferred income tax on adjustments
above
|
-
|
36,405
|
Net loss under US
GAAP
|
-
|
(14,594)
|
Net loss attributable to non
controlling interests
|
28(a) (i)
|
3,852
|
Net loss attributable to Tenda
under US
GAAP
|
-
|
(10,742)
|
Weighted-average number of common
shares outstanding in the year (in thousands)
|
-
|
400,652
|
Loss per
share
|
||
Common
|
||
Basic
|
(0.027)
|
|
Diluted
|
(0.027)
|
|
Reconciliation from US GAAP net
loss to US GAAP net loss allocated to common
shareholders
|
||
US GAAP net
loss
|
(10,742)
|
|
US GAAP net loss
allocated to common shareholders (basic earnings)
|
(10,742)
|
|
Reconciliation from US GAAP net
loss to US GAAP net loss allocated to common
shareholders
|
||
US GAAP net loss
allocated to common shareholders (diluted earnings)
|
(10,742)
|
|
A reconciliation of net loss from
Brazilian GAAP to US
GAAP for the nine-month period ended September 30, 2008 is not
available.
|
|
(ii)
|
Shareholders'
equity
|
Note
|
09/30/09
|
12/31/08
|
|
Shareholders'
equity under Brazilian GAAP
|
-
|
1,121,373
|
1,062,214
|
Revenue
recognition - net operating
|
28(a)
(ii)
|
(575,514)
|
(227,897)
|
Revenue
recognition - operating costs
|
28(a)
(ii)
|
377,114
|
139,892
|
Liability-classified
stock options
|
28(a)
(iii)
|
4,856
|
(272)
|
Business
combination
|
28(a)
(v)
|
25,905
|
27,347
|
Deferred
income tax on adjustments above
|
-
|
72,349
|
35,944
|
Total
Tenda shareholders' equity under US GAAP
|
-
|
1,026,083
|
1,037,228
|
Non
controlling interest
|
-
|
666
|
262
|
Shareholders'
equity under US GAAP
|
-
|
1,026,748
|
1,037,490
|
|
c.
|
US
GAAP supplemental information
|
|
(i)
|
Recent
US GAAP accounting pronouncements
|
|
(i.i)
|
Accounting
pronouncements adopted
|
|
(i.ii)
|
Accounting
pronouncements not yet adopted
|
Report of
Independent Registered Public Accounting
Firm
|
F-120
|
Consolidated
Balance Sheets at December 31, 2008 and
2007
|
F-122
|
Consolidated
Statements of Operations for the years ended December 31, 2008, 2007 and
2006
|
F-125
|
Consolidated
Statements of Changes in Shareholders' Equity for the years ended December
31, 2008, 2007
and 2006
|
F-124
|
Consolidated
Statements of Cash Flows for the years ended
December of 2008, 2007 and 2006
|
F-126
|
Consolidated
Statements of Value Added for the years ended
December 31, 2008, 2007 and 2006
|
F-127
|
Notes to the
Consolidated Financial Statements as of and for the years ended December
31, 2008, 2007 and 2006
|
F-128
|
|
1.
|
We have
audited the accompanying consolidated
balance sheets of Construtora Tenda S.A. and subsidiaries (the “Company”)
as of December 31, 2008 and 2007, and the related consolidated statements
of operations, changes in shareholders’ equity and cash flows for
each of the three years ended December 31, 2008, all expressed in
Brazilian reais. These consolidated financial statements are the
responsibility of the Company’s Management. Our responsibility is to
express an opinion on these consolidated financial statements based on our
audits.
|
|
2.
|
We conducted
our audits in accordance with auditing standards generally accepted in the
United States of America as established by the American Institute of
Certified Public Accountants, and in Brazil. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. The Company is
not required to have, nor were we engaged to perform an audit of its
internal control over financial reporting. Our audits included
consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effctiveness of the
Company’s internal control over financial reporting. Accordingly, we
express no such opinion. An audit also includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant
estimates made by Management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable
basis for our opinion.
|
|
3.
|
In our
opinion, the consolidated financial statements referred to above fairly
present, in all material respects, the consolidated financial position of
Construtora Tenda S.A. as of December 31,
2008 and 2007, and the results of its operations, changes in its
shareholders’ equity and its cash flows for each of the three years
ended December 31, 2008 in conformity with Brazilian accounting
practices.
|
|
4.
|
As mentioned
in Note 2.2., in connection with the changes in the accounting practices
adopted in Brazil in 2008, the consolidated balance sheet as of December
31, 2007, and the related consolidated statements of operations, changes
in shareholders’ equity and cash flows for each of the two years
ended December 31, 2007; presented for comparison purposes, were adjusted
and have been restated pursuant to Accounting Standards and Procedures NPC
12 - "Accounting Practices, Changes in Accounting Estimates and Correction
of Errors", approved by CVM Resolution No.
506/06.
|
|
5.
|
Accounting
practices adopted in Brazil vary in certain significant respects from
accounting principles generally accepted in the United States of America.
The information relating to the nature of such differences is presented in
Note 27 to the consolidated financial
statements.
|
Notes
|
12.31.2008 | 12.31.2007 | |||||||||
Current
assets
|
|
||||||||||
Cash and cas
equivalents
|
3
|
181,661 | 400,512 | ||||||||
Restricted
credits
|
4
|
20,226 | - | ||||||||
Receivables from
clients
|
5
|
142,689 | 73,085 | ||||||||
Properties for
sale
|
6
|
401,852 | 128,742 | ||||||||
Advances
|
7
|
33,842 | 25,895 | ||||||||
Recoverable
taxes
|
|
6,940 | 1,559 | ||||||||
Deferred
taxes
|
18
|
2,879 | - | ||||||||
Deferred selling
expenses
|
|
8,011 | 1,825 | ||||||||
Others
|
|
607 | 5,740 | ||||||||
Total current
assets
|
|
798,707 | 637,358 | ||||||||
|
|||||||||||
|
|||||||||||
|
|||||||||||
Non current
assets
|
|
||||||||||
Receivables from
clients
|
5
|
422,887 | 174,393 | ||||||||
Properties for
sale
|
6
|
148,137 | 47,092 | ||||||||
Deferred
taxes
|
18
|
95,167 | 52,123 | ||||||||
Escrow
deposits
|
8
|
7,977 | 3,919 | ||||||||
Deferred selling
expenses
|
|
1,719 | 408 | ||||||||
Related
parties
|
9
|
47,469 | - | ||||||||
Others
|
|
1,470 | 1,757 | ||||||||
|
724,826 | 279,692 | |||||||||
|
|||||||||||
|
|||||||||||
|
|||||||||||
Investments
|
10
|
- | 1,981 | ||||||||
Property and
equipment, net
|
11
|
17,276 | 7,218 | ||||||||
Intangible
assets
|
12
|
3,221 | 937 | ||||||||
|
|||||||||||
|
20,497 | 10,136 | |||||||||
|
|||||||||||
Total non current
assets
|
745,323 | 289,828 | |||||||||
Total
assets
|
1,544,030 | 927,186 |
Notes
|
12.31.2008 | 12.31.2007 | |||||||||
Current
liabilities
|
|||||||||||
Loans and
financing
|
13
|
52,584 | 23,304 | ||||||||
Suppliers
|
31,857 | 18,530 | |||||||||
Labor and tax
obligations
|
17,805 | 8,407 | |||||||||
Taxes
payable
|
14
|
2,698 | 2,426 | ||||||||
Advances from
clients
|
15
|
52,063 | 28,282 | ||||||||
Rescission
reimbursement payble and provisions
|
16
|
28,191 | 7,754 | ||||||||
Obligations for
purchase of land
|
17
|
53,336 | 51,345 | ||||||||
Deferred
taxes
|
18
|
24,224 | 19,403 | ||||||||
Related
parties
|
9
|
1,334 | - | ||||||||
Other
|
2,500 | 4,409 | |||||||||
Total current
liabilities
|
266,592 | 163,860 | |||||||||
Non current
liabilities
|
|
||||||||||
Loans and
financing
|
13
|
73,866 | 794 | ||||||||
Obligations for
purchase of land
|
17
|
|
15,312 | 16,030 | |||||||
Provision for
contingencies
|
19
|
|
26,840 | 3,008 | |||||||
Taxes
payable
|
14
|
|
14,272 | 11,933 | |||||||
Deferred
taxes
|
18
|
83,703 | 46,302 | ||||||||
Other
|
1,210 | 1,582 | |||||||||
Total non current
liabilities
|
|
215,203 | 79,649 | ||||||||
|
|||||||||||
Non-controlling
interest
|
|
21 | - | ||||||||
|
|||||||||||
Shareholders'
equity
|
|
||||||||||
Capital
Stock
|
20.1
|
755,236 | 692,700 | ||||||||
IPO
expenses
|
(38,474 | ) | (38,474 | ) | |||||||
Capital
reserves
|
20.2
|
374,591 | 20,381 | ||||||||
Income
reserves
|
|
9,070 | 9,070 | ||||||||
Retained
deficit
|
|
(38,209 | ) | - | |||||||
|
1,062,214 | 683,677 | |||||||||
|
|||||||||||
Total liabilities and
shareholders' equity
|
1,544,030 | 927,186 |
12.31.2008 | 12.31.2007 | 12.31.2006 | ||||||||||
Gross
real estate operating revenue
|
504,502 | 277,514 | 81,213 | |||||||||
(
- ) Taxes on services and revenues
|
(19,254 | ) | (11,657 | ) | (3,898 | ) | ||||||
(
= ) Net operating revenue
|
485,248 | 265,857 | 77,315 | |||||||||
(
- ) Operating costs
|
(317,852 | ) | (181,942 | ) | (52,303 | ) | ||||||
(
= ) Gross profit
|
167,396 | 83,915 | 25,012 | |||||||||
(+/-)
Income (expenses)
|
||||||||||||
Administrative
expenses
|
(125,217 | ) | (32,709 | ) | (10,116 | ) | ||||||
Selling
expenses
|
(87,603 | ) | (29,776 | ) | (1,616 | ) | ||||||
Financial
income
|
9,646 | 920 | (2,368 | ) | ||||||||
Other
operating (expenses) income
|
(22,163 | ) | 1,039 | (2,379 | ) | |||||||
(225,338 | ) | (60,526 | ) | (16,479 | ) | |||||||
(
= ) Income before provision for taxes
|
(57,942 | ) | 23,389 | 8,533 | ||||||||
(+) Provision
for taxes and social contributions - current and deferred
|
19,733 | (4,657 | ) | (5,657 | ) | |||||||
(
= ) Net income (loss)
|
(38,209 | ) | 18,732 | 2,876 |
Capital
Reserves
|
Income Reserves
|
|||||||||||||||||||||||||||||||||||||||||||||||
Capital
Stock
|
IPO
Expenses
|
Special
Goodwill
|
FIT
Incorporation
|
Awarding
Options
|
Total
|
Revaluation
Reserve
|
Legal
Reserve
|
Revenues
Reserve
|
Total
|
Retained
Earnings (Deficit)
|
Total
|
|||||||||||||||||||||||||||||||||||||
Balances
at December 31, 2005 - as previously reported
|
2,280 | - | 485 | 359 | 844 | 11,321 | 14,445 | |||||||||||||||||||||||||||||||||||||||||
Retrospective
adjustments required by Law 11.638/07
|
- | 2,313 | 2,313 | (11,321 | ) | (9,008 | ) | |||||||||||||||||||||||||||||||||||||||||
Balances
at December 31, 2005 - Adjusted
|
2,280 | - | - | - | - | - | 485 | 359 | 2,313 | 3,157 | - | 5,437 | ||||||||||||||||||||||||||||||||||||
Realization of
Revaluation Reserve
|
- | (14 | ) | (14 | ) | 14 | - | |||||||||||||||||||||||||||||||||||||||||
Allocation of
income
|
200 | 2,631 | 2,831 | (2,831 | ) | - | ||||||||||||||||||||||||||||||||||||||||||
Dividends
|
- | - | (59 | ) | (59 | ) | ||||||||||||||||||||||||||||||||||||||||||
Net
income
|
- | - | 2,876 | 2,876 | ||||||||||||||||||||||||||||||||||||||||||||
'Balances
at December 31, 2006
|
2,280 | - | - | - | - | - | 471 | 559 | 4,944 | 5,974 | - | 8,254 | ||||||||||||||||||||||||||||||||||||
Capital
increase - Reserves
|
14,353 | - | (559 | ) | (13,794 | ) | (14,353 | ) | - | |||||||||||||||||||||||||||||||||||||||
Capital
increase - New stockholders credits
|
73,067 | - | - | 73,067 | ||||||||||||||||||||||||||||||||||||||||||||
Capital
increase - IPO
|
603,000 | - | - | 603,000 | ||||||||||||||||||||||||||||||||||||||||||||
IPO
expenses
|
(38,474 | ) | - | - | (38,474 | ) | ||||||||||||||||||||||||||||||||||||||||||
Special
goodwill reserves-EDSP92
|
20,381 | 20,381 | - | 20,381 | ||||||||||||||||||||||||||||||||||||||||||||
Realization of
Revaluation Reserve
|
- | (471 | ) | (471 | ) | 471 | - | |||||||||||||||||||||||||||||||||||||||||
Dividends
|
- | (1,283 | ) | (1,283 | ) | (1,283 | ) | |||||||||||||||||||||||||||||||||||||||||
Net
income
|
- | - | 18,732 | 18,732 | ||||||||||||||||||||||||||||||||||||||||||||
Allocation of
income
|
19,203 | 19,203 | (19,203 | ) | - | |||||||||||||||||||||||||||||||||||||||||||
'Balances
at December 31, 2007
|
692,700 | (38,474 | ) | 20,381 | - | - | 20,381 | - | - | 9,070 | 9,070 | - | 683,677 | |||||||||||||||||||||||||||||||||||
FIT
Residencial Incorporation
|
62,536 | 348,705 | 348,705 | - | 411,241 | |||||||||||||||||||||||||||||||||||||||||||
Awarding
options
|
5,505 | 5,505 | - | 5,505 | ||||||||||||||||||||||||||||||||||||||||||||
Net
Loss
|
- | - | (38,209 | ) | (38,209 | ) | ||||||||||||||||||||||||||||||||||||||||||
- | ||||||||||||||||||||||||||||||||||||||||||||||||
'Balances
at December 31, 2008
|
755,236 | (38,474 | ) | 20,381 | 348,705 | 5,505 | 374,591 | - | - | 9,070 | 9,070 | (38,209 | ) | 1,062,214 |
12.31.2008 | 12.31.2007 | 12.31.2006 | ||||||||||
Cash
flows from operating activities
|
||||||||||||
Net Income
(Loss):
|
(38,209 | ) | 18,732 | 2,876 | ||||||||
Expenses (income) not affecting
cash and cash equivalents
|
||||||||||||
Depreciation
|
3,684 | 753 | 519 | |||||||||
Amortization
|
4,628 | 1,802 | - | |||||||||
Decrease
of non current assets - investments
|
1,981 | 101 | - | |||||||||
Decrease
of non current assets - Property and equipment
|
- | 1,048 | - | |||||||||
Provision
for contingencies
|
23,832 | (10,828 | ) | 1,447 | ||||||||
Provision
for Bad Debit
|
10,359 | (3,319 | ) | 3,842 | ||||||||
Interests
of Federal Tax Installments
|
1,241 | 950 | 1,274 | |||||||||
Deferredt
Tax
|
(7,776 | ) | 13,116 | 7,142 | ||||||||
Awarding
Options
|
5,505 | - | - | |||||||||
Interests
of loans and financing
|
8,873 | 3,921 | 234 | |||||||||
Assets and Liabilities
changes
|
||||||||||||
Receivables
from clients
|
(288,054 | ) | (196,788 | ) | (39,829 | ) | ||||||
Properties
for sale
|
(429,877 | ) | (126,970 | ) | 5,912 | |||||||
Other
credits
|
(7,947 | ) | (24,584 | ) | 3,191 | |||||||
Deferred
selling expenses
|
(7,497 | ) | (2,233 | ) | - | |||||||
Recoverable
taxes
|
(5,381 | ) | 374 | (292 | ) | |||||||
Advanced
expenses
|
- | (2,163 | ) | - | ||||||||
Escrow
deposits
|
72 | 18 | (74 | ) | ||||||||
Restricted
credits
|
(19,371 | ) | (1,449 | ) | - | |||||||
Other
assets
|
988 | (255 | ) | 8 | ||||||||
Suppliers
|
13,327 | 17,974 | 298 | |||||||||
Labor
and tax obligations
|
9,398 | 8,190 | 53 | |||||||||
Tax
Provision
|
- | (74 | ) | 74 | ||||||||
Advances
from clients
|
39,204 | 7,127 | 10,257 | |||||||||
Accounts
payable
|
21,649 | 9,062 | (1,048 | ) | ||||||||
Obligations
for purchase of land
|
1,273 | 53,075 | 3,763 | |||||||||
Tax
Obligations - PAES / PAEX
|
- | (1,630 | ) | 790 | ||||||||
PIS/COFINS/IRPJ/CSLL
- federal installments
|
(2,760 | ) | (1,419 | ) | 1,792 | |||||||
Related
Parties - Tenda Engenharia
|
(46,135 | ) | (5,095 | ) | 1,059 | |||||||
Other
Liabilities
|
- | - | 2,218 | |||||||||
Effect
of changes to Law 11.638 and Law 11.941/09
|
- | - | (9,008 | ) | ||||||||
Net cash used in operating
activities
|
(706,993 | ) | (240,564 | ) | (3,502 | ) | ||||||
From investing
activities
|
||||||||||||
Property
and equipment increase
|
(13,742 | ) | (7,652 | ) | (279 | ) | ||||||
Goodwill
Investment aquisition increase
|
- | (2,085 | ) | - | ||||||||
Deferred
increase - Microsiga implementation
|
- | (664 | ) | - | ||||||||
Intangible
increase
|
(2,836 | ) | - | - | ||||||||
Net cash used in investing
activities
|
(16,578 | ) | (10,401 | ) | (279 | ) | ||||||
From financing
activities
|
||||||||||||
Capital
integralization in cash
|
- | 73,067 | - | |||||||||
Capital
integralization - IPO
|
- | 603,000 | - | |||||||||
IPO
expenses
|
- | (38,474 | ) | - | ||||||||
Financing,
net of amortization
|
36,791 | (1,121 | ) | 2,099 | ||||||||
Loan,
net of amortization
|
56,688 | 15,779 | 1,366 | |||||||||
Dividends
|
- | (1,283 | ) | (59 | ) | |||||||
FIT
incorporation
|
411,241 | - | - | |||||||||
Net cash provided by financing
activities
|
504,720 | 650,968 | 3,406 | |||||||||
Increase (decrease) in cash and
equivalents
|
(218,851 | ) | 400,003 | (375 | ) | |||||||
Cash and cash
equivalents
|
||||||||||||
At
the beginning of the year
|
400,512 | 509 | 884 | |||||||||
At
the end of the year
|
181,661 | 400,512 | 509 |
2008
|
2007
|
2006
|
|||||||||||||
1.
|
Revenues
|
||||||||||||||
|
|
||||||||||||||
Real
estate development sales
|
504,502
|
277,514
|
81,213
|
||||||||||||
Allowance
for doubtful accounts
|
(10,359
|
) |
3,319
|
(3,842
|
) | ||||||||||
Others
|
1,718
|
-
|
-
|
||||||||||||
495,861
|
280,833
|
77,371
|
|||||||||||||
|
|
|
|||||||||||||
2.
|
Purchases
from third parties
|
|
|
|
|||||||||||
Real
estate costs
|
317,852
|
181,942
|
52,303
|
||||||||||||
Material,
electric energy, third parties services and others
|
129,754
|
34,308
|
7,963
|
||||||||||||
Assets
losses
|
9,632
|
-
|
-
|
||||||||||||
457,238
|
216,250
|
60,266
|
|||||||||||||
|
|
|
|||||||||||||
3.
|
Value
Added - Gross
|
38,623
|
64,583
|
17,105
|
|||||||||||
|
|
|
|||||||||||||
|
|
|
|||||||||||||
4.
|
Depreciation
and Amortization
|
8,312
|
2,555
|
519
|
|||||||||||
|
|
||||||||||||||
|
|
|
|||||||||||||
5.
|
Value
Added - Net
|
30,311
|
62,028
|
16,586
|
|||||||||||
|
|
|
|||||||||||||
|
|
|
|||||||||||||
6.
|
Value
added received through transfer
|
|
|
|
|||||||||||
|
|
|
|||||||||||||
Finance
income
|
9,646
|
920
|
(2,368
|
) | |||||||||||
9,646
|
920
|
(2,368
|
) | ||||||||||||
|
|
|
|||||||||||||
7.
|
Value
added to be distributed
|
39,957
|
62,948
|
14,218
|
|||||||||||
|
|
||||||||||||||
8.
|
Value
added distribution
|
|
|
|
|||||||||||
|
|
|
|||||||||||||
Direct
compensation
|
46,392
|
24,069
|
1,461
|
||||||||||||
|
|
|
|||||||||||||
Tax
and contributions
|
31,492
|
20,147
|
9,747
|
||||||||||||
|
|
|
|||||||||||||
Interest
ans rents
|
282
|
-
|
134
|
||||||||||||
|
|
|
|||||||||||||
Income
(Losses) retained in the period
|
(38,209
|
) |
18,732
|
2,876
|
|||||||||||
39,957
|
62,948
|
14,218
|
1.
|
Operations
|
(i) Summary balance
sheet
|
|
Current
assets
|
390,468
|
Non current
assets
|
114,101
|
Total
assets
|
504,569
|
Current
liabilities
|
(80,691)
|
Non current
liabilities
|
(12,637)
|
Total
liabilities
|
(93,328)
|
Merged net
assets
|
411,241
|
(ii) Capital increase recorded
in:
|
|
Capital
|
62,536
|
Recognition of capital
reserve
|
348,705
|
Merged net
assets
|
411,241
|
2.
|
Presentation
of financial statements and significant accounting
practices
|
Income
|
Shareholders’
equity
|
|||
Period
ended December 31, of:
|
Year
Ended:
|
|||
2008
|
2007
|
2006
|
2005
|
|
Balances
before the changes introduced by Law No. 11,638/07 and MP No.
449/08
|
(32,528)
|
(7,474)
|
4,001
|
14,445
|
Adjustments
to present value introduced by CPC 12
|
(5,037)
|
(4,084)
|
(1,860)
|
(1,253)
|
Effect on
revenue of recognition of barter transactions at fair value introduced by
OCPC01
|
26,308
|
33,584
|
7,637
|
6,379
|
Effect on
cost of recognition of barter transactions at fair value introduced by
OCPC01
|
(18,903)
|
(30,088)
|
(4,248)
|
(11,916)
|
Effect on
selling expenses due to sales stand and mock-up apartment criterion
change
|
(615)
|
-
|
-
|
-
|
Analysis of
recovery of amounts recorded in assets - Impairment introduced by CPC
01
|
(9,632)
|
-
|
-
|
-
|
Effect on
stock options value introduced by CPC 10
|
(5,505)
|
-
|
-
|
-
|
Deferred
taxes on the above adjustments and equalization of
criterion
|
7,703
|
(11,677)
|
(2,654)
|
(2,218)
|
Others
(IPO)
|
-
|
38,471
|
-
|
-
|
Net effects
arising from the full application of Law No. 11,638/07 and MP No.
449/08
|
(5,681)
|
26,206
|
(1,125)
|
(9,008)
|
Balances
with the full application of Law No. 11,638/07 and MP No.
449/08
|
(38,209)
|
18,732
|
2,876
|
5,437
|
3.
|
Cash
and cash equivalents
|
December
31, 2008
|
December
31, 2007
|
|
Cash and
banks
|
26,690
|
22,737
|
Investment
funds (a)
|
154,971
|
377,775
|
Total
|
181,661
|
400,512
|
4.
|
Restricted
credits
|
December
31, 2008
|
December
31, 2007
|
|
Restricted
credits
|
20,226
|
-
|
5.
|
Receivables
from clients
|
December
31, 2008
|
December
31, 2007
|
|
Receivables
from clients (a)
|
609,476
|
255,694
|
Allowance
for doubtful accounts (b)
|
(18,815)
|
(8,456)
|
Provision
for rescission (c)
|
(11,197)
|
-
|
Postdated
checks
|
536
|
240
|
Adjustment
to present value
(d)
|
(14,424)
|
-
|
Total
|
565,
576
|
247,478
|
(-)
Current
|
142,689
|
73,085
|
Noncurrent
|
422,887
|
174,393
|
Description
|
2008
|
2007
|
Beginning
balance
|
(8,456)
|
(11,775)
|
(-)
Rescussion made
|
(1,994)
|
3,319
|
(+)
New provisions
|
(8,365)
|
-
|
(+)
Change in estimates
|
-
|
-
|
(=)
Ending balance
|
(18,815)
|
(8.456)
|
Description
|
Units
|
R$
|
Provision
recorded (i)
|
5,109
|
(54.576)
|
(-)
Rescission made
|
(3,983)
|
31,460
|
(-)
Provision reversion (ii)
|
(909)
|
11,938
|
(+)
New provision
|
6
|
(19)
|
(=)
Current balance – 12.31.08
|
223
|
(11,197)
|
6.
|
Properties
for sale
|
December
31, 2008
|
December
31, 2007
|
|
Land
for future development
|
197,058
|
93,986
|
Properties
under construction
|
344,196
|
78,232
|
Units
completed
|
11,141
|
3,616
|
Provision
for impairment of assets – land
|
(1,927)
|
-
|
Adjustment
to present value of accounts payable of land
|
(479)
|
-
|
Total
|
549,989
|
175,834
|
(-)
Current
|
401,852
|
128,742
|
Noncurrent
|
148,137
|
47,092
|
7.
|
Advances
|
December
31, 2008
|
December
31, 2007
|
|
Suppliers
(a)
|
13,503
|
1,009
|
Land
(b)
|
18,975
|
14,795
|
Construction
companies / Franchisees (c)
|
5,058
|
9,707
|
Other
receivables
|
604
|
384
|
Provision
for impairment of assets (d)
|
(4,298)
|
-
|
Total
|
33,842
|
25,895
|
8.
|
Escrow
deposits
|
December
31, 2008
|
December
31, 2007
|
|
Cofins
(a)
|
7,977
|
3,847
|
Other
|
-
|
72
|
Total
|
7,977
|
3,919
|
9.
|
Related
parties
|
December
31, 2008
|
December
31, 2007
|
|
Assets
|
||
Current
account with partners
|
47,469
|
-
|
Liabilities
|
-
|
-
|
Current
account with partners
|
1,334
|
-
|
10.
|
Investments
|
|
a.
Goodwill on purchase of
Investments
|
Investees
|
Participation
|
Equity
|
Net Income (loss) for the
period
|
Equity
Equivalence
|
Income
Equivalence
|
Fit Roland
Garros
|
100%
|
4,749
|
390
|
4,749
|
390
|
Mário Covas
SPE
|
80%
|
5,997
|
(280)
|
4,798
|
(224)
|
Imbuí I SPE
|
50%
|
4,545
|
616
|
2,273
|
308
|
Acedio SPE
|
55%
|
2,935
|
(15)
|
1,614
|
(8)
|
Maria Inês
SPE
|
60%
|
2,615
|
157
|
1,569
|
94
|
Fit 04 SPE
|
75%
|
672
|
(84)
|
504
|
(63)
|
Fit 01 SPE
|
100%
|
100
|
(231)
|
100
|
(231)
|
Fit 02 SPE
|
60%
|
(3,461)
|
(4,118)
|
(2,077)
|
(2,472)
|
Fit 03 SPE
|
80%
|
494
|
(30)
|
395
|
(24)
|
Cittá Ipitanga
SPE
|
50%
|
2,658
|
(349)
|
1,329
|
(174)
|
Fit Jardim Botânico
SPE
|
55%
|
9,562
|
28
|
5,259
|
16
|
Fit 05 SPE
|
90%
|
1,774
|
(517)
|
1,597
|
(465)
|
FIT 08 SPE
|
70%
|
(2)
|
(3)
|
(2)
|
(2)
|
FIT 09 SPE
|
75%
|
(202)
|
(353)
|
(152)
|
(265)
|
Fit 10 SPE
|
60%
|
(1,897)
|
(713)
|
(1,138)
|
(428)
|
Fit 11 SPE
|
70%
|
1,054
|
(2)
|
738
|
(1)
|
Fit 12 SPE
|
75%
|
(83)
|
(38)
|
(62)
|
(29)
|
Fit 13 SPE
|
100%
|
7,278
|
45
|
7,278
|
45
|
Fit 14 SPE
|
60%
|
(460)
|
(332)
|
(276)
|
(199)
|
Fit Palladium
SPE
|
70%
|
(601)
|
(174)
|
(421)
|
(122)
|
Fit 06 SPE
|
100%
|
1
|
-
|
1
|
-
|
Fit 07 SPE
|
50%
|
(458)
|
(59)
|
(229)
|
(30)
|
Fit 19 SPE
|
55%
|
(1,858)
|
(1,591)
|
(1,022)
|
(875)
|
Fit 21 SPE
|
90%
|
1,391
|
(1,481)
|
1,252
|
(1,333)
|
Fit 23 SPE
|
100%
|
-
|
-
|
-
|
-
|
Fit - Bricks
SPE
|
90%
|
(2,309)
|
(2,232)
|
(2,078)
|
(2,009)
|
Fit 17 SPE
|
75%
|
(2)
|
-
|
(1)
|
-
|
FGM Incorporações
S/A
|
51%
|
427
|
(419)
|
218
|
(214)
|
Cipesa Projeto
02
|
50%
|
(792)
|
(265)
|
(396)
|
(132)
|
Fit 18 SPE
|
75%
|
(70)
|
(30)
|
(53)
|
(22)
|
Fit 16 SPE
|
70%
|
(912)
|
(1,173)
|
(638)
|
(821)
|
Fit 22 SPE
|
100%
|
(79)
|
(74)
|
(79)
|
(74)
|
Fit 25 SPE
|
75%
|
(1)
|
-
|
(1)
|
-
|
Fit 28 SPE
|
75%
|
(27)
|
-
|
(20)
|
-
|
Fit 29 SPE
|
50%
|
(43)
|
(38)
|
(22)
|
(19)
|
Fit 30 SPE
|
75%
|
(1)
|
-
|
(1)
|
-
|
Fit 31 SPE
|
70%
|
(86)
|
(43)
|
(60)
|
(30)
|
Fit 32 SPE
|
100%
|
698
|
(4)
|
698
|
(4)
|
Fit 33 SPE
|
70%
|
(110)
|
(93)
|
(77)
|
(65)
|
Fit 34 SPE
|
70%
|
(46)
|
(44)
|
(32)
|
(31)
|
Fit 35 SPE
|
100%
|
4,486
|
(1)
|
4,486
|
(1)
|
Fit 36 SPE
|
100%
|
(330)
|
(805)
|
(330)
|
(805)
|
Fit 37 SPE
|
100%
|
2,376
|
(75)
|
2,376
|
(75)
|
Fit 38 SPE
|
100%
|
1,187
|
(3)
|
1,187
|
(3)
|
Fit 39 SPE
|
100%
|
1,947
|
-
|
1,947
|
-
|
Fit 40 SPE
|
100%
|
3,819
|
-
|
3,819
|
-
|
Fit 41 SPE
|
100%
|
(61)
|
-
|
(61)
|
-
|
Fit 42 SPE
|
100%
|
962
|
-
|
962
|
-
|
Fit 26 SPE
|
75%
|
(1)
|
-
|
(1)
|
-
|
Fit 27 SPE
|
100%
|
(1)
|
-
|
(1)
|
-
|
Fit 43 SPE
|
100%
|
(1)
|
-
|
(1)
|
-
|
Fit 20 SPE
|
100%
|
(1)
|
-
|
(1)
|
-
|
Fit João de Alencar
SPE
|
75%
|
(1)
|
(1)
|
(1)
|
(1)
|
Osasco Life
|
100%
|
6,420
|
1,709
|
6,420
|
1,707
|
Vila Park
|
100%
|
9,040
|
(457)
|
9,040
|
(456)
|
Itaquera
Life
|
100%
|
1,049
|
43
|
1,049
|
43
|
Guaianazes
|
100%
|
930
|
(207)
|
930
|
(207)
|
Jd, São
Luiz
|
100%
|
2,790
|
(11)
|
2,790
|
(11)
|
Salvador
Dali
|
100%
|
3,979
|
(265)
|
3,979
|
(265)
|
Valência
|
100%
|
814
|
(30)
|
814
|
(30)
|
Guapurá
|
50%
|
568
|
-
|
284
|
-
|
Klabin Segall Fit 1 SPE
Ltda,
|
50%
|
5,716
|
-
|
2,858
|
-
|
Vila Alegro
|
50%
|
4,662
|
-
|
2,332
|
-
|
Parque dos
Pássaros
|
50%
|
(898)
|
(38)
|
(449)
|
(19)
|
Total
|
82,901
|
(13,690)
|
69,963
|
(9,636)
|
11.
|
Property
and equipment, net
|
%
- Depreciation rate/year
|
December
31, 2008
|
December
31, 2007
|
|
Machinery and
equipment
|
10
|
13,560
|
1,730
|
Vehicles
|
20
|
988
|
634
|
IT
equipment
|
20
|
4,218
|
2,264
|
Leasehold
improvements
|
6,257
|
3,767
|
|
Other
|
178
|
258
|
|
Total
property and equipment
|
25,201
|
8,653
|
|
( - ) Accumulated
depreciation
|
(7,925)
|
(1,435)
|
|
Total
property and equipment, net
|
17,276
|
7,218
|
12.
|
Intangible
assets
|
December
31, 2008
|
December
31, 2007
|
|
Softwares
|
3,990
|
499
|
Other
|
8
|
664
|
(-) Accumulated
amortization
|
(777)
|
(226)
|
Total
|
3,221
|
937
|
13.
|
Loans
and financing
|
Annual
interest rate
|
December
31, 2008
|
December
31, 2007
|
|
Working capital (a) | 100% to 105% of CDI or CETIP + 3% to 4% p.a . |
62,840
|
21,715
|
National Housing System – SFH
(b)
|
10
to 11.4% p.a. or TR + 8.33% p.a.
|
57,432
|
2,383
|
Other
|
6,178
|
-
|
|
Total
|
126,450
|
24,098
|
|
(-)
Current
|
52,584
|
23,304
|
|
Noncurrent
|
73,866
|
794
|
(a)
|
Loans are
guaranteed by promissory notes or own
receivables;
|
(b)
|
Financing are
guaranteed by mortgages on the
land.
|
Year
|
2008
|
2010
|
39,847
|
2011
|
28,834
|
2012
|
3,275
|
2013
|
1,910
|
TOTAL
|
73,866
|
14.
|
Taxes
payable
|
December
31, 2008
|
December
31, 2007
|
|
Federal
tax installments (a)
|
8,993
|
10,512
|
Cofins
(b)
|
7,977
|
3,847
|
Total
|
16,970
|
14,359
|
Current
|
2,698
|
2,426
|
Noncurrent
|
14,272
|
11,933
|
15.
|
Advances
from clients
|
December
31, 2008
|
December
31, 2007
|
|
Receipts
in excess of the appropriated revenue (note
2.2.1)
|
5,572
|
28,282
|
Land
swap transactions stated at fair value
|
46,491
|
-
|
Total
|
52,063
|
28,282
|
16.
|
Rescission
reimbursement payable and
provisions
|
December
31, 2008
|
December
31, 2007
|
|
Rescission
reimbursement payable
(a)
|
24,620
|
7,754
|
Provision
for rescission and annulments of sales contract (b)
|
3,571
|
-
|
Total
|
28,191
|
7,754
|
17.
|
Obligations
for purchase of land
|
December
31, 2008
|
December
31, 2007
|
|
Land
payable
|
69,127
|
67,375
|
Adjustment
present value Ajuste a valor presente
|
(479)
|
-
|
Total
|
68,648
|
67,375
|
Current
|
53,336
|
51,345
|
Noncurrent
|
15,312
|
16,030
|
December
31, 2008
|
|
2010
|
14,972
|
2011
|
332
|
2012
and thereafter
|
8
|
TOTAL
|
15,312
|
18.
|
Deferred
taxes
|
Assets
|
December
31, 2008
|
December
31, 2007
|
Tax
loss carryforwards
|
65,956
|
28,234
|
Credit
– Merger EDSP92 (a)
|
14,607
|
18,683
|
Temporary
provisions:
|
||
Contingencies
|
11,085
|
2,332
|
Provision
for losses
|
6,398
|
2,874
|
Total
|
98,046
|
52,123
|
Current
|
2,879
|
-
|
Noncurrent
|
95,167
|
52,123
|
December
31, 2008
|
December
31, 2007
|
|
Criteria
difference for appropriation of result – taxable income
|
||
PIS
and COFINS
|
24,123
|
14,749
|
IRPJ
and CSLL
|
80,466
|
50,956
|
Criteria
difference for appropriation of result – presumed profit
|
3,338
|
-
|
Total
|
107,927
|
65,705
|
Current
|
24,224
|
19,403
|
Noncurrent
|
83,703
|
46,302
|
2009
|
2,879
|
2010
|
30,419
|
2011
|
32,658
|
TOTAL
|
65,956
|
19.
|
Contingencies
|
December
31, 2008
|
December
31, 2007
|
|
Civil (a)
|
12,433
|
3,008
|
Labor (b)
|
5,317
|
-
|
Tax
and social security (c)
|
8,730
|
-
|
Other
|
360
|
-
|
Total
|
26,840
|
3,008
|
Description
|
|
Outstanding
balance as of 12/31/2007
|
3,008
|
(+)
New provisions
|
8,567
|
(+)
Estimate review
|
15,265
|
Outstanding
balance as of 12/31/2008
|
26,840
|
20.
|
Shareholders’
equity
|
·
|
5% to the
legal reserve, up to 20% of paid-up
capital;
|
·
|
A portion,
upon proposal by management bodies, can be used to set up a provision for
contingencies, as provided for by Article 195 of Law No.
6404/76;
|
·
|
In each year,
shareholders are entitled to a mandatory dividend at 25% of net income for
the year, adjusted as follows:
|
a.
|
the net
income for the year will be decreased or added by the following values:
(i) amount for setting up the legal reserve; and (ii) amount for setting
up a provision for contingencies and reversal of this reserve recognized
in prior years;
|
b.
|
the payment
of dividends can be limited to the amount of net income for the year that
is realized, provided that the difference is recorded as unrealized profit
reserve; and
|
c.
|
profits
recorded in unrealized profit reserve, when realized and provided that
they are not absorbed by losses for subsequent years, are added to the
first dividend declared after
realization.
|
·
|
Dividend will
not be mandatory in the year when the Board of Directors informs to the
Annual General Meeting that it is not compatible with the Company’s
financial condition; the Fiscal Council, if formed, shall express an
opinion on this information and the Company management shall forward to
the CVM within five days from such General Meeting the justification for
the information transmitted to the
Meeting;
|
·
|
Profits that
are not distributed will be recorded as special reserve, and if they are
not absorbed by losses in subsequent years, shall be paid as dividend as
soon as the Company’s financial condition
allows;
|
·
|
A portion,
upon proposal from management bodies, can be used to set up a reserve for
investments at up to 71.25% of adjusted net income for each year, as
provided by Article 196 of Law No.
6404/76;
|
·
|
Upon proposal
from management bodies, it can at any time distribute dividends charging
to Investment Reserve or use its whole or a portion of its balance to
increase capital, including through stock
bonus;
|
·
|
Upon proposal
from management bodies, the Company can also declare interim dividends
charging to Retained Earnings or Profit Reserves of the last annual or
six-month period balance sheet.
|
·
|
The Board of
Directors can pay or credit in each year interest on shareholders’ equity,
as provided for by the income tax legislation, and these can be imputed to
mandatory dividend;
|
·
|
Dividends not
received or claimed shall lapse in three years, counted from the date on
which they were granted to the shareholder, and be reversed on behalf of
the Company;
|
·
|
The general
meeting can grant to the Company’s management members profit sharing,
within the legal limit;
|
·
|
Profit
sharing can only be conferred in the year shareholders receive mandatory
dividend.
|
21.
|
Insurance
|
22.
|
Benefits
to employees
|
23.
|
Financial
instruments
|
24.
|
Stock
option plan
|
Options (quantity of
shares)
|
||
December
31, 2008
|
December
31, 2007
|
|
Beginning
balance – options not exercised
|
-
|
-
|
Options
granted
|
2,640,000
|
-
|
Options
cancelled
|
(570,000)
|
-
|
Outstanding
options at end of period
|
2,070,000
|
-
|
25.
|
Compensation
of management and board
members
|
26.
|
Subsequent
Events -
unaudited
|
27.
|
Supplemental
Information - Summary of Principal Differences between Brazilian GAAP and
US GAAP
|
a.
|
Description
of the GAAP differences
|
(i)
|
Principles
of consolidation
|
(ii)
|
Revenue
recognition
|
(iii)
|
Stock
option plan
|
(iv)
|
Earnings
per share
|
(v)
|
Business
Combinations
|
(vi)
|
Classification
of balance sheet line items
|
(vii)
|
Classification
of statement of income line items
|
b.
|
Reconciliation
of significant differences between Brazilian GAAP and US
GAAP
|
12/31/08
|
|
Shareholders'
equity under Brazilian GAAP
|
1,062,214
|
Revenue
recognition - net operating
|
(227,897)
|
Revenue
recognition - operating costs
|
139,892
|
Liability-classified
stock options
|
(272)
|
Business
combination
|
27,347
|
Other
|
262
|
Deferred
income tax on adjustments above
|
35,944
|
Shareholders'
equity under US GAAP
|
1,037,490
|
2.1
|
Protocol
of Merger of Shares and Instrument of Justification of Tenda S.A. into
Gafisa S.A.—English translation (#)
|
3.1
|
Bylaws
(Estatuto Social)
of Gafisa S.A. (1)
|
3.2
|
Bylaws
(Estatuto Social)
of Construtora Tenda S.A.(#)
|
4.1
|
Amended
and Restated Deposit Agreement dated March 21, 2007 among the Registrant,
Citibank, N.A., as depositary, and the Holders and Beneficial Owners from
time to time of American Depositary Shares issued thereunder, including
the form of American Depositary Receipts.(2)
|
5.1
|
Form
of Opinion of Barbosa, Müssnich & Aragão, Brazilian legal counsel of
the Registrant, as to the legality of the common shares of
Gafisa.
|
8.1
|
Form
of Opinion of Davis Polk & Wardwell LLP, U.S. legal counsel of the
Registrant, as to U.S. federal tax consequences of the Restructuring.
(#)
|
8.2
|
Form
of Opinion of Barbosa, Müssnich & Aragão, Brazilian legal counsel of
the Registrant, as to Brazilian tax consequences of the Restructuring.
(#)
|
10.1
|
Investment
Agreement dated October 2, 2006 among Alphaville Participações S.A.,
Renato de Albuquerque and Nuno Luis de Carvalho Lopes Alves, as
shareholders, and Gafisa S.A., as investor, and Alphaville Urbanismo S.A.,
Fate Administração e Investimentos Ltda. and NLA Administração e
Participações Ltda. (3)
|
10.2
|
Acquisition
Agreement dated October 3, 2008 between Fit Residencial Empreendimentos
Imobiliários Ltda. and Construtora Tenda S.A. (1)
|
11.1
|
Statement
regarding computation of per share earnings for Gafisa
S.A.(4)
|
11.2
|
Statement
regarding computation of per share earnings for Construtora Tenda S.A.
(5)
|
16.1
|
Letter
from PricewaterhouseCoopers Auditores Independentes related to the change
in independent public accountants of Gafisa. (#)
|
21.1
|
List
of Subsidiaries of Gafisa S.A. (1)
|
23.1
|
Consent
of PricewaterhouseCoopers Auditores Independentes (#)
|
23.2
|
Consent
of Terco Grant Thornton Auditores Independentes
(#)
|
99.1
|
Valuation
Report of Banco Itaú BBA S.A. (#)
|
99.2
|
Financial
Analyses of Estáter Assessoria Financeira Ltda. (#)
|
99.3
|
Valuation
Report of N.M. Rothschild & Sons (Brasil) Ltda. (#)
|
99.4
|
Valuation
Reports of APSIS Consultoria Empresarial Ltda (#)
|
99.5
|
Call
Notice for Extraordinary General Shareholders’ Meeting of Gafisa S.A.
(#)
|
99.6
|
Call
Notice for Extraordinary General Shareholders’ Meeting
of Construtora Tenda S.A. (#)
|
99.7
|
Form
of Power of Attorney (#)
|
99.8
|
Consent
of Banco Itaú BBA S.A. (#)
|
99.9
|
Consent
of Estáter Assessoria Financeira Ltda. (#)
|
99.10
|
Consent
of N.M. Rothschild & Sons (Brasil) Ltda. (#).
|
99.11
|
Consent
of APSIS Consultoria Empresarial Ltda.
(#)
|
(#)
|
Filed
herewith.
|
(1)
|
Incorporated
by reference to Gafisa S.A.’s Annual Report on Form 20-F for the
year-ended December 31, 2008, filed with the SEC on June 5,
2009.
|
(2)
|
Incorporated
by reference to Gafisa S.A.’s Registration Statement filed on Form F-6
with the SEC on March 31, 2009.
|
(3)
|
Incorporated
by reference to Gafisa S.A.’s Registration Statement filed on Form F-1
with the SEC on February 22, 2007.
|
(4)
|
Incorporated
by reference to Note 21(a)(v) to Gafisa S.A.’s consolidated financial
statements included elsewhere in this Form
F-4.
|
(5)
|
Incorporated
by referene to Note 28(a)(iv) to Construtora Tenda S.A.’s consolidated
financial statements included elsewhere in this Form
F-4.
|
GAFISA
S.A.
|
|||
By:
|
/s/ Wilson Amaral de
Oliveira
|
||
Name: |
Wilson
Amaral de Oliveira
|
||
Title: |
Chief
Executive Officer
|
||
By:
|
/s/
Alceu Duilio Calciolari
|
||
Name: |
Alceu
Duilio Calciolari
|
||
Title:
|
Chief
Executive Officer
|
Signature
|
Title
|
|
/s/
Wilson Amaral de Oliveira
|
||
Wilson
Amaral de Oliveira
|
Chief
Executive Officer
(Principal
Executive Officer)
|
|
/s/
Alceu Duilio Calciolari
|
||
Alceu
Duilio Calciolari
|
Chief
Financial and Investor Relations Officer
(Principal
Financial and Accounting Officer)
|
|
/s/
Gary R. Garrabrant
|
||
Gary
R. Garrabrant
|
Chairman
of the Board of directors
|
|
/s/
Caio Racy Mattar
|
||
Caio
Racy Mattar
|
Director
|
|
/s/
Richard L. Huber
|
||
Richard
L. Huber
|
Director
|
Signature
|
Title
|
|
/s/
Thomas J. McDonald
|
||
Thomas
J. McDonald
|
Director
|
|
/s/
Gerald Dinu Reiss
|
||
Gerald
Dinu Reiss
|
Director
|
|
/s/
Jose Ecio Pereira da Costa Junior
|
||
Jose
Ecio Pereira da Costa Junior
|
Director
|
|
/s/
Donald Puglisi
|
Donald
Puglisi
Authorized
Representative in the United States
|