gfapr1q13_6ka.htm - Generated by SEC Publisher for SEC Filing
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

 
FORM 6-K/A
 
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For the month of May, 2013

(Commission File No. 001-33356),

 
Gafisa S.A.
(Translation of Registrant's name into English)
 


 
Av. Nações Unidas No. 8501, 19th floor
São Paulo, SP, 05425-070
Federative Republic of Brazil
(Address of principal executive office)



Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.

Form 20-F ___X___ Form 40-F ______



Indicate by check mark if the registrant is submitting
the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1)


Yes ______ No ___X___

Indicate by check mark if the registrant is submitting
the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes ______ No ___X___

Indicate by check mark whether by furnishing the information contained in this Form,
the Registrant is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes ______ No ___X___

If “Yes” is marked, indicate below the file number assigned
to the registrant in connection with Rule 12g3-2(b): N/A


 
 

 


 
 

 

GAFISA GROUP REPORTS RESULTS FOR 1Q13

--- Launches reached R$ 308 million ---

--- Consolidated pre-sales totaled R$218 million and gross sales reached R$700 million in 1Q13 ---


IR Contact Info

Luciana Doria Wilson

Stella Hae Young Hong

Email: ri@gafisa.com.br

 

IR Website:

www.gafisa.com.br/ir

 

1Q13 Earnings Results Conference Call

May 13, 2013

 

> 10am US EST

In English (simultaneous translation from Portuguese)

+ 1-516-300-1066 US EST

Code: Gafisa

 

> 11am Brasilia Time

In Portuguese

Phones:

+55-11-3728-5971

+55-11-3127-4971 (Brazil)

Code: Gafisa

 

Replay:

+55-11-3127-4999 (EUA)

Code: 22902976

+55-11-3127-4999 (Brazil)

Code: 52705154

Webcast: www.gafisa.com.br/ir  

Shares

GFSA3– Bovespa

GFA – NYSE

Total Outstanding Shares:

432,137,7391

Average daily trading volume (90 days2): R$59.3 million

 

1)      Including 599,486 treasury shares

2)      Up March 31, 2013

 

FOR IMMEDIATE RELEASE - São Paulo, May 10, 2013 – Gafisa S.A. (Bovespa: GFSA3; NYSE: GFA), Brazil’s leading diversified national homebuilder, today reported financial results for the first quarter ended March 31, 2013.

 

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

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

continue to be impacted by the resolution of Gafisa segment legacy projects launched in non-core markets and the majority of the remaining Tenda projects.

CONSOLIDATED FINANCIAL RESULTS

Revenue for the first quarter of 2013, recognized by the “PoC” method, decreased 20% year-over-year to R$669 million. Cost of goods sold (COGS) decreased 22% to R$510 million. Gross profit was R$158 million, compared to R$177 million in 1Q12. Gross margin increased to 24%, or 32% excluding the impact of the Tenda business, from 21% and 29%, respectively, in the prior-year period.

Adjusted EBITDA was R$68 million in 1Q13, compared to R$100 million in 1Q12. Adjusted EBITDA for the Gafisa and Alphaville brands totaled R$45 million and R$48 million, respectively, while Tenda´s adjusted EBITDA was negative R$25 million in 1Q13. The adjusted EBITDA margin was 10% or 18% ex-Tenda, compared to 12% and 21%, respectively, in 1Q12.

Net financial expenses totaled R$56 million, a 12% increase compared to the previous year.

Net loss was R$55 million, compared to the previous year’s net loss of R$32 million.

The Company’s key balance sheet metrics remain solid. Cash and cash equivalents were R$1.44 billion at the end of the quarter. Operational cash flow was positive at R$122 million in 1Q13, resulting in cash burn of R$89 million. On a pro forma basis, consolidated cash generation (cash burn) was positive at R$20 million.

Total debt was stable year-over-year at R$3.93 billion at March 31, 2013, compared to R$3.94 billion a year earlier. Net debt decreased to R$2.49 billion at March 31, 2013, compared to R$3.09 billion a year earlier. The Company`s cash position improved to R$1.44 billion from R$847 million balance at the close of March 31, 2012.

Leverage, as measured by net debt/shareholders' equity, was 0.94x at March 31, 2013, compared to 0.89x at December 31, 2012 and decreased to 1.14x at March 31, 2012. Excluding project finance, the net debt/equity ratio was 19%, compared to 20% in 4Q12 and 50% in 1Q12.

CONSOLIDATED OPERATING RESULTS

First-quarter 2013 launches totaled R$308 million, a 34% decrease compared to 1Q12. The result represents 10% of the mid-point of full-year launch guidance of R$ 2.7 to R$ 3.3 billion and is broadly in keeping with the proportion of full-year launches historically occurring in the first quarter.

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

Consolidated net pre-sales totaled R$218 million, a 47% decline compared to 1Q12 due to dissolutions in the Gafisa segment. Sales from launches represented 35% of the total, while sales from inventory comprised the remaining 65%.

Tenda’s sales of launches reached R$ 13.7 million.

Consolidated sales over supply reached 5.9%, compared to 10.4% in 1Q12, reflecting the concentration of inventory in pre-sales. Excluding the Tenda brand, first-quarter sales over supply was 7.2%, compared to 25.1% in 4Q12 and 16.1% in 1Q12. The consolidated sales speed of launches in 1Q13 reached 25%.

Consolidated inventory at market value declined R$119 million to R$ 3.5 billion on a sequential basis. In 1Q13, concluded units totaled R$717 million.

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

 

Note: In accordance with new accounting standards for homebuilders on the consolidation method for shared control projects released by the CPC (Brazilian accounting committee), the Company’s individual and consolidated financial statements as of January 1, 2013 incorporate new pronouncements and interpretations. For comparison purposes, the consolidated financial statements for the quarters ended March 31, 2012 and December 31, 2012 were reclassified to reflect this change. The main impacts occurred in net revenue, costs, gross income, financial income and equity.

 

 

 


 
 

INDEX 

 

Recent Events

04

Gafisa Group Key Numbers

07

Consolidated Numbers for the Gafisa Group

08

Gafisa Segment

09

Alphaville Segment

11

Tenda Segment

13

Income Statement 

16

Revenues 

16

Gross Profit

17

Selling, General and Administrative Expenses

17

EBITDA 

18

Net Income 

18

Backlog of Revenues and Results

19

Balance Sheet 

20

Cash and Cash Equivalents

20

Accounts Receivable

20

Inventory

20

Liquidity

21

Covenant Ratios 

21

Provisions

22

Outlook

23

Group Gafisa Consolidated Income Statement 

24

Group Gafisa Consolidated Balance Sheet

25

Cash Flow

26

Glossary 

33

 

 


 
 

 

 

RECENT EVENTS   

 Consolidated Free Cash Generation Impacted by New Industry Accounting Rules

Chart 1. Cash Generation (Cash burn) (3Q10 – 1Q13)

Nota: 1) Cash Burn de R$20 milhões no critério anterior para efeito de comparação.

Consolidated operational cash flow was R$122 million in the quarter. Consolidated cash generation (cash burn) was negative at R$89 million and was impacted by the adoption of new accounting rules on the consolidation method for shared control projects. The new accounting standards are reflected in both individual and consolidated financial statements as of March 31, 2013. Their adoption resulted in the restatement of 2012 interim results and changes to some balance sheet items. On a pro forma basis, consolidated cash generation (cash burn) was positive at R$20 million.

 

 

 

Unit Deliveries

Chart 2. Delivered units (2010 – 1Q13)

Gafisa Group delivered 9 projects/phases encompassing 1,300 units during the first quarter, a 79% decrease compared to 1Q12 due to the lower volume of sites under construction at the Tenda business. See the accompanying chart for detailed information.

 

Status on Alphaville Acquisition

The arbitration has been submitted to the Brazil-Canada Chamber of Conciliation and Arbitration as prescribed in the Investment Agreement. To recap, according to the terms of the agreement between Gafisa and Alphapar when Gafisa acquired control of Alphaville in 2006, as the Parties did not reach an agreement on the acquisition of the remaining 20% stake in Alphaville, the process was submitted to arbitration on an exclusive and final basis.

 

Analysis of Strategic Options for the Alphaville Business

In September 2012, the Company disclosed in a material fact that it has initiated an analysis of strategic options for the Alphaville business. It believes that the value of Alphaville is not reflected in the current valuation of Gafisa by the market. Strategic options include an IPO of its controlled company Alphaville Urbanismo S.A. (“Alphaville”), the sale of a stake in the business or the maintenance of the current status. Gafisa continues to analyze strategic options for Alphaville that will maximize value for Gafisa shareholders in the long run and will inform the market as soon as possible once a decision has been made.

 

4

 


 
 

 

RECENT EVENTS   

                                             

Impact of New Industry Accounting Standards on the Group’s Consolidated Financial Statements

Commencing 2013, the Company has adopted new accounting rules for Brazilian homebuilders on the consolidation method of control of shared projects published by the Accounting Pronouncements Committee - CPC 19 (R2) - "Business Combination".

Beginning January 1, 2013, jointly controlled entities are consolidated by the equity method, instead of the proportional method. As a result, the Company consolidates jointly controlled entities in the consolidated interim statements.

The new rules, which align with international standards, are reflected in Gafisa’s individual and consolidated interim statements for March 31, 2013. Thus, for comparison purposes, the consolidated financial statements for the quarters ended March 31, 2012 and December 31, 2012 were reclassified to reflect this change. The main impacts occurred in net revenue, costs, gross financial result and equity. The table below shows pro-forma results and the impact on 1Q13 balances.

Table 1. Balance Sheet (1Q13)

 

Pro-forma 1Q13 (A)

Effective Data 1Q13 (B)

(A) – (B) = (C)1

(C) / (B)

Current Assets

6.911.643

6.170.781

(740.862)

-12%

Long term assets

1.498.054

1.469.754

(28.300)

-2%

Investments

314.976

889.839

574.862

65%

Total Assets

8.724.673

8.530.374

(194.299)

-2%

Current liabilities

2.701.352

2.598.830

(102.523)

-4%

Long-term liabilities

3.382.278

3.287.001

(95.276)

-3%

Total Liabilities

6.083.630

5.885.831

(197.799)

-3%

Shareholders’ Equity

2.641.043

2.644.543

3.499

0%

Total Liabilities and Equity

8.724.673

8.530.374

(194.300)

-2%

Project Financing SFH

982.980

790.881

(192.098)

-24%

Debentures - FGTS

1.190.382

1.190.382

-

0%

Debentures - Working Capital

584.426

584.426

-

0%

Working Capital

1.146.952

1.146.952

-

0%

Investors Obligations

216.000

216.000

-

0%

Total Debt

4.120.740

3.928.641

(192.098)

-5%

Cash and Cash Equivalent

1.582.167

1.443.643

(138.523)

-10%

Net Debt

2.538.573

2.484.998

(53.575)

-2%

Cash Generation (Burn)

20.191

(88.984)

(109.175)

nm

Net Debt/Equity

96%

94%

2%

nm

Note: 1. The Company will adopt CPCs 19 (R2) and 36 (R3) retrospectively (adjusting the comparative balances for 2012).

Table 2. Income Statement (1Q13)

 

Pro-forma 1Q13 (A)

Effective Data 1Q13 (B)

(A) – (B) = (C)1

(C) / (D)

Net Operating Revenues

718.927

668.591

(50.336)

-8%

Operating Costs

(542.187)

(510.315)

31.872

5%

Gross Profit

176.740

158.276

(18.464)

-3%

Gross Margin

24,6%

23,7%

-0,9%

0%

Operating Expenses

(162.049)

(161.643)

406

0%

Equity

-

21.813

21.813

3%

Net Financial Result

(53.006)

(56.302)

(3.296)

0%

Taxes

(7.363)

(7.641)

(278)

0%

Minority shareholders

(9.795)

(9.976)

(181)

0%

Net Loss

(55.473)

(55.473)

-

 

Adjusted EBITDA ²

63.474

67.886

4.412

 

Adjusted EBITDA margin ²

9%

10%

1%

 

Note: 1. The Company will adopt CPCs 19 (R2) and 36 (R3) retrospectively (adjusting the comparative balances for 2012). 2. EBITDA Earnings before interest, tax, depreciation and amortization. EBITDA Adjusted for expenses on stock option plans (non-cash), capitalized interest and minority shareholders

 

The pronouncements (new or revised) and the interpretation listed below, issued by CPC and approved by CVM, are mandatory for the years beginning January 1, 2013 or later. They are as follows: • CPC 18 (R2) – Investments in associates and joint ventures – CVM Resolution no. 696 of December 13, 2012; • CPC 19 (R2) – Joint arrangements – CVM Resolution no. 694 of November 23, 2012; • CPC 33 (R1) – Employee benefits –CVM Resolution no. 695 of December 13, 2012; • CPC 36 (R3) – Consolidated statements – CVM Resolution no. 698 of December 20, 2012; • CPC 45 – Disclosure of interests in other entities – CVM Resolution no. 697 of December 13, 2012; and • CPC 46 – Fair value measurement – CVM Resolution no. 699 of December 20, 2012.

 

 

5


 
 

 

RECENT EVENTS    

Updated Status of the Results by Brand

Having successfully executed significant structural and operational changes in 2012, Gafisa will deliberately accelerate investment in its business in 2013. This will be achieved through land purchases for the Gafisa brand and increased overall launch activity, including the resumption of launches in the Tenda business under a profitable business model and the continued expansion of Alphaville’s growth.

GAFISA  SEGMENT  

The Company advanced in delivering projects on schedule and within budget. The Gafisa brand experienced increased sales cancellations in the first quarter, reflecting the high volume of deliveries in the second half of 2012. 44% of dissolutions referred to completed units and 34% to units in non-core markets. Of those units cancelled, around 40% were promptly resold in the quarter.

ALPHAVILLE  SEGMENT 

Alphaville’s operations are performing as planned. The Company plans to selectively expand its subdivisions business to take advantage of the growth potential of the Brazilian residential market. Since the brand’s acquisition by Gafisa, Alphaville has grown on average 34% p.a. with substantial gains in margin and returns to shareholders.

TENDA  SEGMENT  

Having achieved control of the operational and the financial cycle in 2012, the Tenda brand resumed launches in the first quarter of 2013. First-quarter launches totaled R$114 million and included 2 projects/phases across 2 cities, Sao Paulo and Salvador. The Company relaunched the Tenda brand under its new business model, which is detailed below, thus maximizing the potential of the Tenda brand within the Gafisa Group. The move forms part of the Company’s reinvestment strategy that will expand medium and long-term profitability.

Figure 1.Tenda Homebuilding Workflow

 

Phase 1 - In new communities, Tenda either purchases a parcel of land on which it can build a number of homes or subdivides the land into lots to build multiple projects that will be launched in phases

Tenda targets areas where customers make 3-6 times the monthly minimum wage. Participants in the land development stage are: financial institutions (projects need to be approved and contracted before the 2nd phase), municipal planning and zoning departments, elected officials and community interest groups.

Phase 2 - During this stage, Tenda does not contract advertising agencies. Instead the marketing campaign is conducted internally. Brochures are distributed exclusively at Tenda's store, eliminating the need for a sales stand.

Sales are conducted by an internal force and targeted at customers whose units can be immediately transferred to banks. The remuneration of the internal sales team is based on the “repasse” (transfer of units to financial institutions). The sale transferred to banks makes the sales process more complex, but much more assertive and with virtually no sales cancellations. As a result of the tighter credit policy and the new sales process, sales velocity has no peaks during the launch phase, but on the other hand, sales expenses are lower, and sales are steady. The model is made to have between 7-10% SoS per month, each and every month, until the project is sold out at least in 15 months.

Phase 3 - Aluminum molds are used in construction to ensure a high quality and cost efficiency. Tenda uses its own project management software and procedures for construction to minimize external variances. During this phase, monthly installments are not  adjusted for inflation. However, the shorter cycle and use of aluminum mold improve cost visibility. The overall process, from authorization, through to launch, construction and delivery, is planned to take approximately 2 years. The loan starts out as a construction loan based on a subsidized line of credit that banks provide to low income builders and rolls over into a permanent mortgage to the final buyer. The line of credit provides the builder with financing for several homes at a time. A key advantage of the program is the assurance of financing, which allows the builder to focus on execution and better schedule construction workflow.

Phase 4 - Collections for sold units are in accordance with the payment plan provided by financial institutions under the “associativo” (MCMV - a federal program established in 2009 to fund housing for Brazil’s poor and middle classes).

Tenda receives 100% of the value of the unit during the construction phase, eliminating  the risk of delinquency on its balance sheet.

.    

 

6


 
 

 

KEY NUMBERS FOR THE GAFISA GROUP 

Table 3 – Operating and Financial Highlights – (R$000, unless otherwise specified)

1Q13

4Q12

Q-o-Q(%)

1Q12

Y-o-Y(%)

Launches (%Gafisa)

307.553

1.489.760

-79%

463.740

-34%

Launches (100%)

391.690

1.780.811

-78%

568.046

-31%

Launches, units (%Gafisa)

1.617

5.120

-68%

1.283

26%

Launches, units (100%)

2.003

6.695

-70%

1.667

20%

Contracted sales (%Gafisa)

218.281

905.241

-76%

408.237

-47%

Contracted sales (100%)

255.929

1.202.068

-79%

507.213

-50%

Contracted sales, units (% Gafisa)

831

3.097

-73%

502

66%

Contracted sales, units (100%)

1.076

4.203

-74%

900

20%

Contracted sales from Launches (%co)

76.276

760.410

-90%

222.944

-66%

Sales over Supply (SoS) %

5,9%

20,0%

-71%

10,4%

-44%

Completed Projects (%Gafisa)

172.590

1.327.531

-87%

1.106.806

-84%

Completed Projects, units (%Gafisa)

1.300

9.378

-86%

6.165

-79%

Note: * The difference btw Gafisa Stake in the projects and 100% is related to Alphaville contribution in the mix , business unit where the partner is the landowner.

Consolidated Land bank (R$) 4

20.509.519

18.668.669

10%

16.759.355

22%

Potential Units

108.305

87.742

23%

83.124

30%

Number of Projects / Phases

134

123

9%

59

127%

 

 

 

 

 

 

Net revenues

668.591

815.071

-18%

831.684

-20%

Gross profit

158.276

221.360

-28%

176.672

-10%

Gross margin

23,7%

27,2%

-349bps

21,2%

243bps

Adjusted Gross Margin ¹

28,8%

30,67%

-6%

25,4%

13%

EBITDA

18.767

(15.936)

-218%

52.248

-64%

EBITDA Margin

2,8%

-2,0%

476bps

6,3%

-348bps

Adjusted EBITDA ²

67.886

32.842

107%

100.335

-32%

Adjusted EBITDA margin ²

10%

4,0%

612bps

12%

-191bps

EBITDA (exTenda)

93.380

90.925

3%

111.691

-16%

Adjusted EBITDA margin ² (ex-Tenda)

17,7%

14,6%

304bps

20,8%

-309bps

Adjusted Net (loss) profit ²

(40.583)

(78.742)

-48%

(18.187)

123%

Adjusted Net margin ²

-6,1%

-9,7%

359bps

-2,2%

-388bps

Net (loss) profit

(55.473)

(98.875)

-44%

(31.515)

76%

EPS (loss) (R$)

(0,129)

(0,229)

44%

(0,073)

76%

Number of shares ('000 final)

431.630

432.630

0%

432.099

0%

 

 

 

 

 

 

Revenues to be recognized

3.309.913

3.676.320

-10%

3.562.048

-7%

Results to be recognized ³

1.289.503

1.449.745

-11%

1.261.061

2%

REF margin ³

39,0%

39,4%

-48bps

35,4%

356bps

 

 

 

 

 

 

Net debt and investor obligations

2.485.372

2.396.388

4%

3.088.885

-20%

Cash and cash equivalent

1.443.644

1.567.755

-8%

847.121

70%

Equity

2.489.357

2.544.504

-2%

2.623.135

-5%

Equity + Minority shareholders

2.644.543

2.694.888

-2%

2.716.976

-3%

Total assets

8.530.374

8.714.662

-2%

8.768.668

-3%

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

94%

89%

506bps

114%

-1971bps

Note: Unaudited Financial Operational data

1) Adjusted for capitalized interest

2) EBITDA Earnings before interest, tax, depreciation and amortization. EBITDA Adjusted for expenses on stock option plans (non-cash), capitalized interest and minority shareholders

3) Results to be recognized net of PIS/Cofins - 3.65%; excludes the AVP method introduced by Law nº 11,638

4) Note: During 2Q12, Tenda land bank was readjusted to focus on core regions, 3Q12 all remaining non-strategic land bank were excluded

Nm = not meaningful

 

7


 
 

 

CONSOLIDATED DATA FOR THE GAFISA GROUP   

 

Consolidated Launches

First-quarter 2013 launches totaled R$308 million, a 34% decrease compared to 1Q12. The result represents 10% of the mid-point of full-year launch guidance of R$ 2.7 to R$ 3.3 billion, which is broadly in keeping with the proportion of full-year launches historically occurring in the first quarter. Throughout the quarter, 5 projects/phases were launched across 3 states, with Tenda accounting for 37% of launches, Alphaville 36% and the Gafisa segment the remaining 27% in terms of potential sales value (PSV).

Table 4. Consolidated Launches (R$ thousand)

Launches

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Gafisa Segment

83.029

813.767

-90%

214.690

-61%

Alphaville Segment

110.828

675.993

-84%

249.050

-55%

Tenda Segment

113.696

-

-

-

-

Total

307.553

1.489.760

173%

463.740

-34%

 

Consolidated Pre-Sales

First-quarter 2013 consolidated pre-sales totaled R$218 million, a 47% decline compared to 1Q12. Sales from launches represented 35% of the total, while sales from inventory comprised the remaining 65%. As reported above, dissolutions in the Gafisa segment were higher on a sequential basis and impacted the volume of net sales. Tenda’s sales in both launched projects being transferred to financial institutions reached R$ 13.7 million.

Table 5. Consolidated Pre-Sales (R$ thousand)

         

 

 

 

Pre-sales

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Gafisa Segment

101.116

498.452

-80%

316.702

-68%

Alphaville Segment

110.380

436.442

-75%

181.978

-39%

Tenda Segment

6.785

-29.653

-123%

-90.443

-108%

Total

218.281

905.241

-76%

408.237

-47%

Tenda sales being transferred New launches

13.700

0

 

0

 

                           

 

Consolidated Sales over Supply (SoS)

Consolidated sales over supply reached 5.9%, compared to 10.4% in 1Q12, reflecting the concentration of inventory in pre-sales. Excluding the Tenda brand, first-quarter sales over supply was 7.2%, compared to 25.1% in 4Q12 and 16.1% in 1Q12. The consolidated sales speed of launches in 1Q13 reached 25%.

Table 6. Gafisa Group Sales over Supply (SoS)

Sales Speed

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Gafisa (A)

5.0%

20.1%

-75%

13.9%

-64%

Alphaville (B)

12.0%

35.0%

-66%

22.2%

-46%

Total (A) + (B)

7.2%

25.1%

-71%

16.1%

-55%

Tenda (C)

0.9%

-3.7%

-72.2%

-11.0%

-90.6%

Total (A) + (B) + (C)

5.9%

20.0%

-71.6%

10.4%

-45.6%

Notes: nm = not meaningful

Results by Brand

Table 7. Main Operational & Financial Numbers - Contribution by Brand – 1Q13

 

Gafisa (A)

Alphaville (B)

Total (A) + (B)

Tenda (C)

Total (A) + (B) + C) 

Deliveries (PSV R$mn)

38.995

49.204

88.199

84.391

172.590

Deliveries (% contribution)

23%

29%

51%

49%

100%

Deliveries (units)

86

419

505

795

1.300

Launches (R$mn)

83.029

110.828

193.857

113.696

307.553

Launches (% contribution)

27%

36%

63%

37%

100%

Launches (units)

165

432

597

1.020

1.617

Pre-sales

101.116

110.380

211.496

6.785

218.281

Pre-Sales (% contribution)

46%

51%

97%

3%

100%

Revenues (R$mn)

367.284

161.042

528.326

140.265

668.591

Revenues (% contribution)

55%

24%

79%

21%

100%

Gross Profit (R$mn)

87.767

80.132

167.899

-9.623

158.276

Gross Margin (%)

24%

50%

32%

-7%

24%

Adusted EBITDA (R$mn)

44.970

48.410

93.380

-25.494

67.886

Adjusted EBITDA Margin (%)

12%

30%

18%

-18%

10%

EBITDA (% contribution)

66%

71%

138%

-38%

100%

EBITDA Earnings before interest, tax, depreciation and amortization. EBITDA Adjusted for expenses on stock option plans (non-cash), capitalized interest and minority shareholders

 

8


 
 

 

GAFISA SEGMENT 

  

Focuses on residential developments within the upper, upper-middle, and middle-income segments, with unit prices exceeding R$250,000.

 

Gafisa Segment Launches

 

First-quarter launches reached R$83 million and included 1 project/phase in São Paulo, a 61% decline compared to the prior year period.

 

Table 8. Launches by Market Region Gafisa Segment (R$ million)

%Gafisa - R$000

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Gafisa

São Paulo

83.029

606.209

-86%

214.690

-61%

 

Rio de Janeiro

0

207.558

-100%

0

0%

 

Other

0

0

0%

0

0%

 

Total

83.029

813.767

-90%

214.690

-61%

 

Units

165

1.422

-88%

410

-60%

 

Table 9. Launches by unit price Gafisa Segment (R$ million)

%Gafisa - R$000

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Gafisa

≤ R$500K

-

294.607

-100%

62.099

-100%

 

R$500K a R$750K

83.029

194.431

-57%

0

0%

 

> R$750K

-

324.729

-100%

152.591

-100%

 

Total

83.029

813.767

-90%

214.690

-61%

 

Gafisa Segment Pre-Sales

 

First-quarter gross pre-sales totaled R$293 million, a 24% decrease compared to 1Q12. Net pre-sales totaled R$101 million in 1Q13, a 68% decrease compared to 1Q12. Sales from units launched during the same period represented 12% of total sales, while sales from inventory accounted for the remaining 88%. In 1Q13, sales velocity (sales over supply) was 5.0%, compared to 13.9% in 1Q12. The sales velocity of Gafisa launches was 14% during 1Q13.

In the same period, the volume of dissolutions was R$191 million, of which 44% referred to completed units and 34% to units in non-core markets. Excluding dissolutions, sales velocity of the Gafisa segment in 1Q13 reached 13.2%. Of those units cancelled, around 40% were promptly resold in the quarter.

Table 10. Pre-Sales by Market Region Gafisa Segment (R$ million)

%co - R$000

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Gafisa

São Paulo

97.087

358.301

-73%

243.782

-60%

 

Rio de Janeiro

20.531

110.433

-81%

54.431

-62%

 

Other

(16.501)

29.718

-156%

18.489

-189%

 

Total

101.116

498.452

-80%

316.702

-68%

 

Units

195

940

-79%

647

-70%

 

Table 11. Pre-Sales by unit Price Gafisa Segment (R$ million)

%co - R$000

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Gafisa

≤ R$500K

11.489

131.566

-91%

101.343

-89%

 

R$500K a R$750K

35.754

132.058

-73%

71.512

-50%

 

> R$750K

53.873

234.828

-77%

143.847

-63%

 

Total

101.116

498.452

-80%

316.702

-68%

 

Table 12. Pre-Sales by unit Price Gafisa Segment (# units)

%co - R$000

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Gafisa

≤ R$500K

90

456

-80%

353

-74%

 

R$500K a R$750K

64

236

-73%

164

-61%

 

> R$750K

41

249

-84%

130

-68%

 

Total

195

940

-79%

647

-70%

 

 

9


 
 

 

Gafisa Segment Delivered Projects

During 1Q13, Gafisa delivered 1 project/phase and 86 units. The tables below lists the products delivered in 1Q13:

Table 13. Delivered Projects Gafisa Segment (1Q13)

 

 

 

 

 

Company

Project

Delivery

Launch

Local

% co

Units

PSV R$000

Gafisa

Estação Sorocaba

February

2009

Rio de Janeiro

100%

86

38.995

Total

 1Q13

 

 

 

 

86

38.995

 

Projects launched Gafisa Segment

The following table displays Gafisa Segment projects launched during 1Q13:

Table 14. Projects Launched at Gafisa Segment (1Q13)

Projects

Launch Date

Local

% co

Units
(%co)

PSV
(%co)

% sales
31/03/12

Sales
31/03/12

Today Santana

March

São Paulo

100%

165

83.029

14%

11.696

 

 

 

 

 

 

 

 

Total 1Q13

 

 

 

165

83.029

14%

11.696

Note: The VSO refers to contracted sales over the corresponding period of the offer. In this calculation, we consider the stock adjusted to reflect the correct price.

 

Table 15. Land Bank Gafisa Segment – as of 1Q13

 

PSV - R$million
(%Gafisa)

%Swap
Total

%Swap
Units

%Swap
Financial

Potential units
(%co)

Potential units
(100%)

São Paulo

4.260.470

33%

32%

1%

8.668

10.112

Rio de Janeiro

1.224.666

52%

52%

0%

1.955

2.003

Total

5.485.136

 

 

 

10.623

12.115

 

Table 16. EBITDA Gafisa  Segment (R$000)

(R$'000) Consolidated

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Net profit

(40.493)

(94.519)

-57%

(22.411)

81%

(+) Financial result

52.097

40.141

30%

40.599

28%

(+) Income taxes

2.915

1.801

62%

9.722

-70%

(+) Depreciation and Amort.

6.486

31.107

-79%

14.625

-56%

(+) Capitalized interest

22.075

19.919

11%

28.484

-23%

(+) Stock option plan expenses

4.628

3.957

17%

6.034

-23%

(+) Minority shareholders

(2.738)

-298

819%

(6.616)

-59%

Adjusted EBITDA

44.970

2.108

2033%

70.437

-36%

Adjusted EBITDA margin

12%

1%

1163bps

17%

-452bps

EBITDA

21.005

(21.470)

-198%

42.535

-51%

Net revenues

367.284

340.819

8%

420.258

-13%

Note: Net Revenues include 8% of sales of land bank that did not generate margins. EBITDA Earnings before interest, tax, depreciation and amortization. EBITDA Adjusted for expenses on stock option plans (non-cash), capitalized interest and minority shareholders.

 

Table 17. Inventory at Market Value 1Q13 x 4Q12 (R$ mn) – Gafisa Segment breakdown by Region

 

Inventories BoP1

Launches

Dissolution

Pre-Sales

Price Adjust + Other5

Inventories EoP2

% Q-o-Q3

São Paulo

1.242.119

83.029

103.300

-211.664

-34.031

1.182.753

-5%

≤ R$500K

487.689

-

43.142

-77.353

-16.643

436.836

-10%

R$500K a R$750K

160.473

83.029

24.795

-58.677

-13.514

196.105

22%

> R$750K

593.958

-

35.363

-75.635

-3.874

549.812

-7%

Rio de Janeiro

417.086

-

23.471

-44.024

5

396.539

-5%

≤ R$500K

74.175

-

5.174

-6.372

-11.029

61.948

-16%

R$500K a R$750K

175.707

-

7.222

-9.704

4.064

177.289

1%

> R$750K

167.205

-

11.074

-27.948

6.971

157.302

-6%

Others

324.488

-

64.801

-37.000

-10.460

341.829

5%

≤ R$500K

209.440

-

45.200

-21.281

33.637

266.996

27%

R$500K a R$750K

91.822

-

10.111

-9.501

-47.573

44.858

-51%

> R$750K

23.226

-

9.490

-6.217

3.476

29.975

29%

Total Gafisa

1.983.694

83.029

191.572

-292.688

-44.486

1.921.120

-3%

≤ R$500K

771.304

-

93.517

-105.006

5.965

765.780

-1%

R$500K a R$750K

428.001

83.029

42.128

-77.882

-57.024

418.252

-2%

> R$750K

784.388

-

55.927

-109.800

6.573

737.088

-6%

Note: 1) BoP beginning of the period – 4Q12. 2) EP end of the period – 1Q13.  3) % Change 1Q13 versus 4Q12. 4)  1Q13 sales velocity. 5) projects cancelled during the period.

 

10


 
 

 

ALPHAVILLE SEGMENT 

  

Focuses on the sale of residential lots, with unit prices between R$130,000 and R$500,000.

 

Alphaville Segment Launches

 

First-quarter launches totaled R$111 million, a 55% decrease compared to 1Q12, and included 2 projects/phases across 2 states. The brand accounted for 36% percent of first quarter consolidated launches.

Table 18 - Launches by Alphaville Segment (R$ million)

%co - R$000

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

 Alphaville  

Total

110.828

675.993

-84%

249.050

-55%

 

Units

432

3.698

-88%

873

-51%

 

 

Table 19 - Launches by unit price Alphaville Segment - (R$ million)

%co - R$000

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Alphaville

≤ R$200K;

49.725

437.448

-89%

-

0%

 

> R$200K; ≤ R$500K

61.103

238.545

-74%

249.050

-75%

 

> R$500K

0

0

0%

-

0%

 

Total

110.828

675.993

-84%

249.050

-55%

 

Alphaville Pre-Sales

 

First-quarter pre-sales reached R$110 million, a 39% decrease compared to the first quarter of 2012. During 1Q13, the residential lots segment’s share of consolidated pre-sales increased to 51% from 45% in 1Q12. In 1Q13, sales velocity (sales over supply) was 12.0%, compared to 22.2% in 1Q12. Fourth-quarter sales velocity from launches was 45.9%. Sales from launches represented 46% of total sales, while the remaining 54% came from inventory.

 

Table 20 - Pre-Sales Alphaville Segment - (R$ million)

%co - R$000

 

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Alphaville

Total

110.380

436.442

-75%

181.978

-39%

 

Units

471

2339

-80%

762

-38%

 

Table 21. Pre-Sales by unit Price Alphaville Segment (R$ million

%Alphaville R$000

 

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Alphaville

≤ R$200K;

39.838

226.452

-82%

24.011

66%

 

> R$200K; ≤ R$500K

61.536

198.595

-69%

159.447

-61%

 

> R$500K

9.005

11.395

-21%

(1.480)

-708%

 

Total

110.380

436.442

-75%

181.978

-39%

                         

Table 22. Pre-Sales by unit Price Alphaville Segment (# units)

%Alphaville R$000

 

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%

Alphaville

≤ R$200K;

287

1.622

-82%

148

94%

 

> R$200K; ≤ R$500K

174

700

-75%

618

-72%

 

> R$500K

9

16

-45%

-5

-268%

 

Total

471

2.339

-80%

760

-38%

                       

 

 

Alphaville Segment Delivered Projects

During the first quarter, Alphaville delivered 1 project/phase and 419 units. The tables below list the products delivered in 1Q13:

 

Table 23. Delivered projects (1Q13) - Alphaville Segment

Company

Project

Delivery

Launch

Local

% co

Units %co

PSV R$000

Alphaville

Terras Alphaville Resende

mar/13

jun/11

Resende / RJ

77%

419

49.204

Total 1Q13

 

 

 

 

 

419

49.204

 

 

11

 


 
 

 

Table 24. Projects Launched (1Q13) - Alphaville Segment

Project

Date

Local

Units (%co)

% co

PSV (%co)

Sales

Alphaville Castello

mar-13

Itu/SP

69%

153

61.103

56%

34.461

Terras Alphaville Maricá 2

mar-13

Maricá / RJ

47%

280

49.725

33%

16.463

Alphaville Total 1Q13

   

 

432

110.828

46%

50.924

1 Note: Sales year to date.

 

Table 25. Land Bank Alphaville Segment as of 1Q13

 

PSV - R$million
(%co )

%Swap
Total

%Swap
Units

%Swap
Financial

Potential units
(%co)

Potential units
(100%)

Total

13.021.761

99%

-

99%

79.954

128.691

 

 

Table 26. EBITDA Alphaville Segment

(R$'000) Consolidated

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Net profit (considering 80% stake)

28.873

56.631

-49%

21.626

34%

(+) Financial result

7.136

15.537

-54%

9.575

-25%

(+) Income taxes

1.205

-84

-1535%

2.449

-51%

(+) Depreciation and amort.

888

640

39%

542

64%

(+) Capitalized interest

635

1.283

-51%

52

1121%

(+) Stock option plan expen.

253

335

-24%

334

-24%

(+) Minority shareholders

9.420

14.475

-35%

6.676

41%

Adjusted EBITDA

48.410

88.817

-45%

41.254

17%

Adjusted EBITDA margin

30%

32%

-162bps

35%

-503bps

EBITDA

38.102

72.724

-48%

34.192

11%

Net revenues

161.042

280.325

-43%

117.580

37%

EBITDA Earnings before interest, tax, depreciation and amortization. EBITDA Adjusted for expenses on stock option plans (non-cash), capitalized interest and minority shareholders.

 

Table 27. Inventory at Market Value 1Q13 x 4Q12 (R$ mn) – Alphaville Segment by Market Region

 

Inventories BoP1

Launches

Dissolution

Pre-Sales

Price Adjust + Other5

Inventories EoP2

% Q-o-Q3

Total AUSA

812.174

110.828

57.420

(167.799)

(3.696)

808.927

0%

≤ R$200K;

268.999

49.725

15.327

(55.165)

(11.023)

267.863

0%

> R$200K; ≤ R$500K

354.823

61.103

31.999

(93.536)

(2.265)

352.125

-1%

> R$500K

188.352

-

10.094

(19.099)

9.592

188.939

0%

Note: 1) BoP beginning of the period – 4Q12. 2) EP end of the period – 1Q13.  3) % Change 1Q13 versus 4Q12. 4)  1Q13 sales velocity. 5) projects cancelled during the period

 

12


 
 

                                                                                                                                                                                             

TENDA SEGMENT                                 

  

Focuses on affordable residential developments, with unit prices between R$80,000 and R$200,000.

 

Tenda Segment Launches

 

Throughout 2012, Tenda’s senior management team implemented corrective actions focused on execution and the delivery of existing and in-progress developments. During this period, the Company deliberately halted the launch of Tenda units to establish control over the financial and operational construction cycle so that sustainable, profitable growth could be resumed.

Having achieved control of the operational and the financial cycle in 2012, the Tenda brand resumed launches in the first quarter of 2013. First-quarter launches totaled R$ 114 million and included 2 projects/phases across 2 cities, Osasco-SP and Camaçari-BA. The brand accounted for 37% percent of first quarter consolidated launches. 

Table 28. Launches by Market Region Tenda Segment (R$ million)

%Tenda - R$000

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Tenda

São Paulo

67.755

0

0%

0

0%

 

Rio de Janeiro

0

0

0%

0

0%

 

Minas Gerais

0

0

0%

0

0%

 

Northeast

45.941

0

0%

0

0%

 

Others

0

0

0%

0

0%

 

Total

113.696

0

0%

0

0%

 

Units

1.020

0

0%

0

0%

Note: mn not meaningful. Negative amount related to cancellation.

Table 29. Launches by Market Region Tenda Segment (R$ million)

%Tenda - R$000

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Tenda

≤ MCMV

113.696

0

0%

0

0%

 

> MCMV

0

0

0%

0

0%

 

Total

113.696

0

0%

0

0%

Note: mn not meaningful. Negative amount related to cancellation.

 

Tenda Segment Pre-Sales

First-quarter pre-sales totaled R$6.8 million. Sales from units launched during the same period represented 5% of total gross contracted sales of R$239 million,. Sales from inventory accounted for the remaining 95%. All new projects under the Tenda brand are being developed in phases wherein qualification for financing programs is required and sales are contingent upon the ability to transfer mortgages to financial institutions.

The sales velocity of Tenda launches was 12% during the 1Q13.

Cancelled units are being promptly resold to qualified customers. Out of the 1,473 Tenda units that were cancelled and returned to inventory, 41% were resold to qualified customers in 1Q13.

The run-off of Tenda legacy projects is expected to be substantially concluded in 2013.

Table 30. Pre-Sales (Dissolutions) by Market Region Tenda Segment (R$ million)

%Tenda - R$000

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Tenda

São Paulo

13.016

-6.148

-312%

-47.561

-127%

 

Rio de Janeiro

16.607

15.605

6%

-190

-8822%

 

Minas Gerais

-15.491

-22.121

-30%

-32.805

-53%

 

Northeast

10.214

13.219

-23%

-20.629

-150%

 

Others

-17.561

-30.208

-42%

10.743

-263%

 

Total

6.785

-29.653

-123%

-90.443

-108%

 

Units

165

-182

-191%

-907

-118%

Note: 1 PoC – Percentage of completion method. Negative numbers are related to dissolutions

 

Table 31. Pre-Sales (Dissolutions) by unit Price Tenda Segment (R$ million)

%Tenda - R$000

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Tenda

≤ MCMV

36.191

-3.630

-1097%

-96.759

-137%

 

> MCMV

-29.406

-26.023

13%

6.316

-566%

 

Total

6.785

-29.653

-123%

-90.443

-108%

 

 

13


 
 

 

Table 32. Pre-Sales (Dissolutions) by unit Price Tenda Segment (# units)

%Tenda - R$000

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Tenda

≤ MCMV

316

-56

-664%

-941

-134%

 

> MCMV

-151

-126

20%

35

-536%

 

Total

165

-182

-191%

-907

-118%

Note: Not meaningful

 

Tenda Segment Operations

In 1Q13, Tenda transferred around 2,451 units to financial institutions.

Tenda Segment Delivered Projects

During first quarter, Tenda delivered 7 projects/phases and 795 units. The tables below list the products delivered in 1Q13:

Table 33 - Delivered projects Tenda Segment (1Q13)

Company

Project

Delivery

Launch

Local

% co

Units %co

PSV R$

Tenda

Parma Tower

Feb

2009

Belo Horizonte

100%

36

4.434

Tenda

Espaço Engenho Life I

Mar

Up to 2008

Rio de Janeiro

100%

80

7.290

Tenda

Brisa do Parque III

Mar

2010

São José dos Campos

100%

105

12.285

Tenda

Fit Cristal

Mar

Up to 2008

Porto Alegre

80%

154

19.008

Tenda

Germânia F1C

Mar

2010

São Leopoldo

100%

100

10.280

Tenda

Igara Life

Mar

2010

Canoas

100%

240

21.494

Tenda

Valle Verde Cotia VII

Mar

2011

Cotia

100%

80

9.600

Total 1Q13

 

 

 

 

 

795

84.391

 

 

 

Table 34. Projects Launched (1Q13) - Tenda Segment

Project

Date

Local

Units (%co)

% co

PSV (%co)

Sales

Novo Horizonte – Turíbio

Março

Osasco - SP

100%

580

67.755

16%

10.861

Vila Cantuária

Março

Camaçari - BA

100%

440

45.941

6%

2.795

Tenda Total 1Q13

   

 

1.020

113.696

12%

13.656

1 Note: Sales year to date.

 

Table 35. Land Bank Tenda Segment (1Q13)

 

PSV - R$million
(% Tenda)

%Swap
Total

%Swap
Units

%Swap
Financial

Potential units
(%co)

Potential units
(100%)

São Paulo

407.793

17%

17%

0%

3.512

3.512

Rio de Janeiro

292.207

1%

1%

0%

2.517

2.517

Nordeste

825.114

16%

16%

0%

7.517

7.517

Minas Gerais

477.508

68%

36%

32%

4.182

4.182

Total

2.002.622

 30%

20% 

10% 

17.728

17.728

 

Table 36. EBITDA Tenda

(R$'000) Consolidated

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Net profit

(43.853)

(60.987)

-28%

(30.730)

43%

(+) Financial result

(2.931)

(1.670)

76%

(107)

2639%

(+) Income taxes

3.521

(8.182)

-143%

4.082

-14%

(+) Depreciation and amort.

2.923

3.649

-20%

2.276

28%

(+) Capitalized interest

11.519

7.443

55%

6.223

85%

(+) Stock option plan expens.

33

145

-77%

145

-77%

(+) Minority shareholders

3.294

1.519

117%

6.755

-51%

Adjusted EBITDA

(25.494)

(58.083)

-56%

(11.356)

124%

Adjusted EBITDA margin

-18,2%

-30,0%

1178bps

-3,9%

-1431bps

EBITDA

(40.340)

(67.190)

-40%

(24.479)

65%

Net revenues

140.265

193.927

-28%

293.846

-52%

EBITDA Earnings before interest, tax, depreciation and amortization. EBITDA Adjusted for expenses on stock option plans (non-cash), capitalized interest and minority shareholders.

 

 

14


 
 

 

Table 37. Inventory at Market Value 1Q13 x 4Q12 – Tenda Segment Breakdown by Region

 

Inventories BoP1

Launches

Dissolution

Pre-Sales

Price Adjust + Other5

Inventories EoP2

% Q-o-Q3

São Paulo

76.936

67.755

38.808

-51.824

-808

130.867

70%

MCMV

60.339

67.755

31.371

-46.159

3.989

117.295

94%

> MCMV

16.597

0

7.437

-5.665

-4.796

13.573

-18%

Rio de Janeiro

133.952

0

25.937

-42.545

-1.618

115.727

-14%

MCMV

126.636

0

23.184

-39.558

4.587

114.848

-9%

> MCMV

7.316

0

2.754

-2.986

-6.205

878

-88%

Minas Gerais

108.794

0

46.403

-30.913

-42.336

81.948

-25%

MCMV

60.737

0

25.986

-19.690

-20.506

46.528

-23%

> MCMV

48.056

0

20.417

-11.223

-21.830

35.420

-26%

Northeast

119.009

45.941

29.493

-39.707

-50.381

104.355

-12%

MCMV

76.044

45.941

28.279

-32.917

-15.749

101.597

34%

> MCMV

42.965

0

1.214

-6.789

-34.632

2.758

-94%

Others

387.981

0

91.875

-74.314

-65.447

340.095

-12%

MCMV

137.049

0

14.785

-21.471

11.514

141.877

4%

> MCMV

250.931

0

77.090

-52.843

-76.961

198.218

-21%

Total Tenda

826.671

113.696

232.517

-239.302

-160.589

772.992

-6,5%

MCMV

460.805

113.696

123.605

-159.796

-16.165

522.146

13,3%

> MCMV

365.866

0

108.912

-79.506

-144.425

250.847

-31,4%

Note: 1) BoP beginning of the period – 4Q12. 2) EP end of the period – 1Q13.  3) % Change 1Q13 versus 4Q12. 4)  1Q13 sales velocity. 5) projects cancelled during the period

 

 

15


 
 

 

INCOME STATEMENT 

Revenues

On a consolidated basis, net revenue recognized by the “PoC” method decreased 20% year-over-year to R$669 million in 1Q13. Gafisa accounted for 55% of consolidated net revenues, while Alphaville comprised 24% and Tenda the remaining 21%. The table below presents detailed information on pre-sales and recognized revenues by launch year: The Gafisa brand experienced increased sales cancellations in the first quarter, reflecting the high volume of deliveries in the second half of 2012. This resulted in a revenue reversal of R$94 million. In addition, legacy Tenda projects experienced R$233 million in sales cancellations. The Company is working to resell these units in a timely manner. In 1Q13, the Gafisa brand accounted for 55% of net revenues.

 

Table 38. Pre-sales and recognized revenues by launch year

 

 

 

 

 

 

1Q13

1Q12

 

 Launch year

PreSales

%PreSales

Revenues

%

PreSales

%PreSales

Revenues

%

Gafisa

2013 Launches

11.696

12%

-

0%

0

0%

-

0%

(55% stake

2012 Launches

131.985

131%

142.409

39%

67.863

21%

0

0%

 Total

2011 Launches

(4.637)

-5%

82.226

22%

81.243

26%

100.907

24%

Revenues)

2010 Launches

(17.620)

-17%

103.843

28%

56.423

18%

116.108

28%

 

≤ 2010 Launches

(20.309)

-20%

38.807

11%

111.174

35%

190.649

45%

 

Land Bank

0

0

 

0%

0

0

12.593

3%

 

Total Gafisa

101.116

100%

367.285

100%

316.702

100%

420.258

100%

Alphaville

2013 Launches

50.924

46%

1.942

1%

0

0%

-

0%

(24% stake

2012 Launches

33.789

31%

73.993

46%

155.081

85%

3.950

3%

 Total

2011 Launches

16.918

15%

61.057

38%

16.062

9%

39.307

33%

Revenues)

2010 Launches

3.806

3%

15.011

9%

3.213

2%

48.459

41%

 

≤ 2010 Launches

4.942

4%

9.039

6%

7.622

4%

25.863

22%

 

Land Bank

-

0

-

0%

-

0

-

0%

 

Total AUSA

110.380

100%

161.042

100%

181.978

100%

117.580

100%

Tenda

2013 Launches

13.656

201%

-

0%

0

0

-

0%

(21% stake

2012 Launches

-

0%

3

0%

0

0%

-

0%

 Total

2011Launches

(15.230)

-224%

9.875

7%

(30.635)

34%

15.365

5%

Revenues)

2010 Launches

4.520

67%

66.010

47%

(67.567)

75%

91.696

31%

 

≤ 2010 Launches

3.838

57%

64.378

46%

7.759

-9%

181.817

62%

 

Land Bank

-

0

 

0%

 

0

4.968

2%

 

Total Tenda

6.785

100%

140.265

100%

(90.443)

100%

293.846

100%

Consolidated

2013 Launches

76.276

35%

1.942

0%

0

0%

-

0%

 

2012 Launches

165.774

76%

216.405

32%

222.944

55%

3.950

0%

 

2011 Launches

(2.948)

-1%

153.157

23%

66.670

16%

155.580

19%

 

2010 Launches

(9.293)

-4%

184.864

28%

(7.931)

-2%

256.263

31%

 

≤ 2010 Launches

(11.528)

-5%

112.224

17%

126.555

31%

398.329

48%

 

Land Bank

-

0

-

0%

-

0

17.561

2%

Total

 Total Gafisa Group

218.281

100%

668.591

100%

408.237

100%

831.684

100%

                       

 

 

 

16


 
 

 

Gross Profit

Gross profit was R$158 million in the first quarter compared to R$177 million in 1Q12. The result was impacted by the poor performance of Tenda and Gafisa brand legacy projects in non-core markets.  Gross margin was 24% in 1Q13, compared to 27% in 4Q12 and 21% in 1Q12, reflecting the smaller contribution of Tenda in the consolidated mix and the increased contribution of Alphaville. During 1Q13, the Gafisa brand accounted for 55% of consolidated gross profit (versus 52% a year ago), Alphaville comprised 51% (versus 37% a year  ago) and Tenda had a negative contribution to the mix of -6% (versus 11% a year ago).

Table 39. Gross Margin (R$000)

 

 

 

 

 

 

 

 

(R$'000) Consolidated

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Gross Profit

158.276

221.360

-28%

176.672

-10%

Gross Margin

23,7%

27,2%

-349bps

21,2%

243bps

Gross Profit (ex-Tenda)

167.899

212.803

-21%

157.615

7%

Gross Margin (ex-Tenda) %

31,8%

34,3%

-248bps

29,3%

247bps

                           

 

Table 40. Capitalized Interest

 

(R$million) Consolidated

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Opening balance

239.327

238.256

0%

204.739

17%

Capitalized interest

36.922

33.403

11%

19.513

89%

Interest capitalized to COGS

(34.229)

(28.645)

19%

(34.759)

-2%

Closing balance

242.020

243.014

0%

189.493

28%

             

Selling, General and Administrative Expenses (SG&A)

SG&A expenses totaled R$147 million in 1Q13, an 8% increase compared to R$137 million in 1Q12. Selling expenses increased 27% on a year-over-year basis to R$55 million, as a result of the expenses related to the sales of launches and marketing expenses related to the efforts of selling inventory. The Company continues to focus on reducing finished inventory.

Table 41. SG&A Expenses (R$000)

 

 

 

 

 

 

(R$'000) Consolidated

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Selling expenses

(70.434)

(98.820)

-29%

(55.301)

27%

G&A expenses

(76.949)

(93.660)

-18%

(81.385)

-5%

SG&A

(147.383)

(192.480)

-23%

(136.686)

8%

Selling expenses (ex-Tenda)

(49.655)

(73.240)

-32%

(35.008)

42%

G&A expenses (ex-Tenda)

(54.317)

(61.986)

-12%

(54.475)

0%

SG&A (ex-Tenda)

(103.972)

(135.226)

-23%

(89.483)

16%

                       

 

Table 42. SG&A / Launches (%)

(R$'000) Consolidated

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Selling expenses /Launches

-23%

-7%

-1627 bps

-12%

-1098 bps

G&A /Launches

-25%

-6%

-1873 bps

-18%

-747 bps

SG&A/Launches

-48%

-13%

-3500 bps

-29%

-1845 bps

Selling expenses /Launches (ex-Tenda)

-26%

-5%

-2070 bps

-8%

-1807 bps

G&A /Launches (ex-Tenda)

-28%

-4%

-2386 bps

-12%

-1627 bps

SG&A/Launches (ex-Tenda)

-54%

-9%

-4456 bps

-19%

-3434 bps

 

 

 

 

 

 

Table 43. SG&A / Pre-Sales (%)

         

(R$'000) Consolidated

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Selling expenses /Pre-Sales 

-32%

-11%

-2135 bps

-14%

-1872 bps

G&A /Pre-Sales

-35%

-10%

-2491 bps

-20%

-1532 bps

SG&A / Pre-Sales

-68%

-21%

-4626 bps

-33%

-3404 bps

Selling expenses /Pre-Sales (ex-Tenda)

-23%

-8%

-1564 bps

-7%

-1646 bps

G&A /Pre-Sales (ex-Tenda)

-26%

-7%

-1905 bps

-11%

-1476 bps

SG&A / Pre-Sales (ex-Tenda)

-49%

-14%

-3470 bps

-18%

-3122 bps

   

 

 

 

 

Table 44. SG&A / Revenues (%)

 

 

 

 

 

 

(R$'000) Consolidated

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Selling expenses /Net Revenues

-11%

-12%

159 bps

-7%

-389 bps

G&A expenses/Net Revenues

-12%

-11%

-2 bps

-10%

-172 bps

SG&A/Net Revenues

-22%

-24%

157 bps

-16%

-561 bps

Selling expenses /Net Revenues (ex-Tenda)

-9%

-12%

239 bps

-7%

-289 bps

G&A expenses/Net Revenues (ex-Tenda) 

-10%

-10%

-30 bps

-10%

-15 bps

SG&A/Net Revenues (ex-Tenda) 

-20%

-22%

209 bps

-17%

-304 bps

                           

 

17


 
 

 

Administrative expenses reached R$77 million in 1Q13, a 5% decrease compared to R$81 million in 1Q12, due to the reduction in G&A expenses at the Gafisa and Tenda segments totaling R$6.9 million.

 

Table 45. General and Administrative Expenses Breakdown (1Q12-1Q13)

(R$000) Consolidado

1Q13 (A)

1Q12 (B)

A/A (%)

Change

(A) - (B)

Stake (%) in the Total Changes Posted (A) - (B) / (C)

Wages and salaries expenses

(36.648)

(35.792)

2%

(856)

-19%

Benefits and employees

(2.549)

(2.433)

5%

(116)

-3%

Travel expenses and utilities

(2.302)

(5.225)

-56%

2.923

66%

Services rendered

(9.828)

(9.255)

6%

(573)

-13%

Rentals and condos fee

(3.750)

(3.582)

5%

(168)

-4%

Information Technology

(2.624)

(2.857)

-8%

233

5%

Stock Option Plan

(4.914)

(6.513)

-25%

1.599

36%

Provision for Bonus and Profit Sharing

(12.547)

(13.327)

-6%

780

18%

Other

(1.787)

(2.401)

-26%

614

14%

Total (C)

(76.949)

(81.385)

-5%

4.436

100%

 

 

 

Consolidated Adjusted EBITDA

Earnings before interest, tax, depreciation and amortization totaled R$19 million in 1Q13, a 64% decrease compared to R$52 million posted in 1Q12. Adjusted EBITDA was R$68 million in 1Q13, compared to R$100 million in 1Q12. Adjusted EBITDA ex-Tenda was R$93 million in 1Q13, compared to R$112 million in 1Q12. During 1Q13, the adjusted EBITDA margin reached 10% or 18% ex-Tenda, as compared to 12% and 21%, respectively, in 1Q12. Adjusted EBITDA for Gafisa and Alphaville totaled R$45 million and R$48 million, respectively, while Tenda´s adjusted EBITDA was negative R$25 million.

Table 47. Consolidated Adjusted EBITDA

(R$'000) Consolidated

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Net Profit (Loss)

(55.473)

(98.875)

-44%

(31.515)

76%

(+) Financial result

56.302

54.008

4%

50.067

12%

(+) Income taxes

7.641

(6.465)

-218%

16.253

-53%

(+) Depreciation and Amortization

10.297

35.396

-71%

17.443

-41%

(+) Capitalized Interest Expenses

34.229

28.645

19%

34.759

-2%

(+) Stock option plan exp.

4.914

4.437

11%

6.513

-25%

(+) Minority shareholders

9.976

15.696

-36%

6.815

46%

Adjusted EBITDA

67.886

32.842

107%

100.335

-32%

Adjusted EBITDA margin

10,2%

4,0%

612bps

12,1%

-191bps

Net Revenue

668.591

815.071

-18%

831.684

-20%

EBITDA

18.767

-15.936

-218%

52.248

-64%

Adjusted EBITDA (ex Tenda)

93.380

90.925

3%

111.691

-16%

Adj. EBITDA Mg (ex Tenda)

17,7%

14,6%

304bps

20,8%

-309bps

EBITDA Earnings before interest, tax, depreciation and amortization. EBITDA Adjusted for expenses on stock option plans (non-cash), capitalized interest and minority shareholders.

 

Depreciation And Amortization

Depreciation and amortization in 1Q13 was R$10 million, a decrease of R$7 million when compared to R$17 million recorded in 1Q12.

Financial Results

Net financial expenses totaled R$56 million in 1Q13, compared to a net financial result of R$50 million in 1Q12. Financial revenues increased to R$23 million from R$16 million at the end of the year, due to the stronger cash position.

Taxes

Income taxes, social contribution and deferred taxes for 1Q13 amounted to negative R$8 million, compared to R$16 million in 1Q12.  

Adjusted Net Income (Loss)

Gafisa Group reported a net loss of R$55 million in 1Q13, compared to a net loss of R$32 million in 1Q12. Net results were impacted by lower gross margins on Tenda projects coupled with higher financial expenses, which were partially offset by Alphaville’s net income of R$29 million reported in the period.

 

18


 
 

 

Backlog of Revenues and Results

The backlog of results to be recognized under the PoC method was R$3.3 billion in 1Q13, 8% lower than the R$3.6 billion posted in 1Q12, and 10% lower than the R$3.7 billion posted in 4Q12. The consolidated margin for the quarter increased to 39% from 35% in 1Q12. The improvement reflects the increased contribution of the most recent projects in the Group’s product mix, the contribution of the Tenda brand and the increased proportion of Alphaville projects. The table below shows the backlog margin by segment:

Table 48. Results to be recognized (REF) by brand

 

Gafisa

Tenda

Alphaville

Gafisa Group

Gafisa ex- Tenda

Revenues to be recognized

1.951.419

361.914

996.580

3.309.913

2.947.999

Costs to be incurred (units sold)

(1.273.873)

(275.766)

(470.771)

(2.020.410)

(1.744.644)

Results to be Recognized

677.546

86.148

525.809

1.289.503

1.203.355

Backlog Margin

35%

24%

53%

39%

41%

Note: Revenues to be recognized are net of PIS/Cofins (3.65%); excludes the AVP method introduced by Law nº 11,638

 

It is worth mentioning that the difference between Tenda’s backlog margin and margin reported in the income statement is mainly due to the project-related expenses attributed to the projects were modified that were recognized directly in the income statement.

 

Table 49. Gafisa Group Results to be recognized (REF)

 

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Revenues to be recognized

3.309.913

3.676.320

-10%

3.562.048

-7%

Costs to be incurred (units sold)

(2.020.410)

(2.226.575)

-9%

(2.300.987)

-12%

Results to be Recognized

1.289.503

1.449.745

-11%

1.261.061

2%

Backlog Margin

39%

39%

-48 bps

35%

356 bps

Note: It is included in the gross profit margin and not included in the backlog: Adjusted Present Value (AVP) on receivables, revenue related to swaps, revenue and cost of services rendered, AVP over property (land)  debt , cost of swaps and provision for guarantees.  

 

19


 
 

 

BALANCE SHEET 

Cash and Cash Equivalents

On March 31, 2013, cash and cash equivalents totaled R$1.4 billion, a 8% decline compared to 4Q12.  

Accounts Receivable

At the end of 1Q13, total accounts receivable decreased 13% to R$6.7 billion compared to 1Q12 and 6% compared to the R$7.1 billion posted in 4Q12. . Gafisa has additional receivables (from units already delivered) of more than R$590 million available for securitization.

Table 50. Total receivables

 

 

 

 

 

(R$000) Consolidated

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Receivables from developments – LT (off balance sheet)

3.435.302

3.815.589

-10%

3.696.988

-7%

Receivables from PoC – ST (on balance sheet)

2.492.119

2.493.170

0%

2.980.105

-16%

Receivables from PoC – LT (on balance sheet)

740.058

820.774

-10%

1.013.663

-27%

Total

6.667.479

7.129.533

-6%

7.690.756

-13%

Notes: ST – Short term | LT- Long term | PoC – Percentage of Completion Method

Receivables from developments: accounts receivable not yet recognized according to PoC and BRGAAP

Receivables from PoC: accounts receivable already recognized according to PoC and BRGAP

 

 

Inventory

 

Table 51. Inventory (Balance Sheet at cost)

(R$000) Consolidated

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Land

907.246

889.538

2%

1.016.980

-11%

Units under construction

958.377

941.417

2%

1.220.091

-21%

Completed units

394.016

344.749

14%

173.514

127%

Total

2.259.639

2.175.704

4%

2.410.585

-6%

 

Inventory totaled R$2.26 billion in 1Q13, a 4% increase on the R$2.7 billion registered in 4Q12 decreased 6% Y-o-Y. At the end of 1Q13, finished units accounted for 20% of total inventory. The Company continues to focus on reducing finished inventory.

Table 52. Inventory at Market Value per completion status  

Company

Not started

Up to 30% constructed

30% to 70% constructed

More than 70% constructed

Finished units¹

Total 1Q13

Gafisa

71.526

594.505

739.571

240.129

275.389

1.921.120

Alphaville

-

323.260

182.060

140.964

162.643

808.927

Tenda

101.132

34.665

151.590

206.568

279.037

772.992

Total

172.659

952.429

1.073.220

587.662

717.070

3.503.039

Note: 1) Inventory at market value includes projects with partners. This data is not on the same basis as the inventory booked at cost given the new  accounting method implemented.

Consolidated inventory at market value reduced by R$119 million to R$3.5 billion in 1Q13. In 1Q13, concluded units totaled R$717 million. The market value of Gafisa inventory, which represented 55% of total inventory, decreased 3% to R$ 1.92 billion at the end of 1Q13. Completed units accounted for 14% of the Gafisa segment’s inventory. The market value of Alphaville inventory was stable at R$809 million at the end of 1Q13, and completed units represented 20% of the segment’s inventory. Tenda inventory was valued at R$772 million at the end of 1Q13, compared to R$827 million at the end of 4Q12, and completed units represented 36% of the segment’s total inventory. The overall decline in inventory balances reflects the volume of first quarter sales.

Table 53. Inventory at Market Value 1Q13 x 4Q12

 

Inventories BoP1

Launches

Dissolution

Pre-Sales

Price Adjust + Other5

Inventories EoP2

% Q-o-Q3

VSO4

Gafisa (A)

1,983,694

83,029

191,572

-292,688

-44,486

1,921,120

-3.2%

5.0%

Alphaville (B)

812,174

110,828

57,420

-167,799

-3,696

808,927

-0.4%

12.0%

Total (A) + (B)

2,795,867

193,857

248,992

-460,487

-48,182

2,730,047

-2.4%

7.2%

Tenda (C)

826,671

113,696

232,517

-239,302

-160,589

772,992

-6.5%

0.9%

Total (A) + (B) + (C)

3,622,538

307,553

481,508

-699,789

-208,771

3,503,039

-3.3%

5.9%

Note: 1) BoP beginning of the period – 4Q12. 2) EP end of the period – 1Q13.  3) % Change 1Q13 versus 4Q12. 4)  1Q13 sales velocity. 5) projects cancelled during the period

 

 

20


 
 

Liquidity

The Gafisa Group ended the first quarter with R$1.4 billion in cash and cash equivalents, down from R$1.6 billion at the end of 4Q12. Net debt was R$2.5 billion at the end of 1Q13, a R$89.0 million increase from R$2.4 billion the end of 4Q12. As a result, consolidated cash generation (cash burn) was negative at approximately R$89.0 million in 1Q13. This quarter, the lowest volume of releases, and the disbursement of about U.S. $ 50mm acquisition of land acquired in 2012 and 2013 impacted the operating cash flow.

The net debt and investor obligations to equity and minorities ratio was 94% compared to 89% in 4Q12 and 114% in 1Q12. Excluding project finance, the net debt/equity ratio reached 19% from 20% in 4Q12 and 50% in the 1Q12.

The Company has access to a total of R$1.6 billion in construction finance lines contracted with banks and R$520 million of construction credit lines in the process of being approved. Also, Gafisa has R$3.1 billion available in construction finance lines of credit for future developments. The following tables provide information on the Company’s debt position:

Table 54. Indebtedness and Investor obligations

 

 

Type of obligation (R$000)

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Debentures - FGTS (A)

1.189.918

1.163.204

2,3%

1.244.225

-4,4%

Debentures - Working Capital (B)

584.890

572.699

2,1%

704.420

-17,0%

Project Financing SFH – (C)

790.881

704.758

12,2%

484.833

63,1%

Working Capital (D)

1.146.952

1.199.776

-4,4%

1.138.254

0,8%

Total (A)+(B)+(C)+(D) =(E)

3.712.641

3.640.437

2,0%

3.571.732

3,9%

Investor Obligations (F)

216.375

323.706

-33,2%

364.274

-40,6%

Total debt (E) + (F) = (G

3.929.016

3.964.143

-0,9%

3.936.006

-0,2%

Cash and availabilities (H)

1.443.644

1.567.755

-7,9%

847.121

70,4%

Net debt (G)-(H) = (I)

2.485.372

2.396.388

3,7%

3.088.885

-19,5%

Equity + Minority Shareholders (J)

2.644.543

2.694.888

-1,9%

2.716.976

-2,7%

ND/Equity (I)/(J) = (K)

94%

89%

5,7%

114%

-1971bps

ND Exc. Proj Fin / Equity (I)-((A)+(C))/(J) = (L)

19%

20%

-2,7%

50%

-3097bps

               

 

The Gafisa Group ended the first quarter with R$3.9 billion of total debt, R$1.2 billion maturing in the next 12 months. However, it is worth mentioning that project finance accounts for 50% of this amount.

 

Table 55. Debt maturity

 

 

 

 

 

(R$million)

Average Cost (p.a.)

Total

Until Mar/14

Until Mar/15

Until Mar/16

Until Mar/17

After Mar/17

Debentures - FGTS (A)

TR + (9,54% - 10,09%)

1.189.918

241.925

247.993

350.000

150.000

200.000

Debentures - Working Capital (B)

CDI + (1,50% - 1,95%)

584.890

140.698

283.659

150.000

6.913

3.620

Project Financing SFH – (C)

TR + (8,30% - 11,50%)

790.881

200.618

373.449

160.448

40.684

15.682

Working Capital (D)

CDI + (1,30% - 3,04%)

1.146.952

410.715

331.764

250.182

137.711

16.580

Total (A)+(B)+(C)+(D) =(E)

 

3.712.641

993.956

1.236.865

910.630

335.308

235.882

Investors Obligations (F)

CDI + (0.235% - 1.00%) / IGPM +7.25%

216.375

184.819

15.133

9.885

5.399

1.139

Total debt (E) + (F) = (G)

9.33%

3.929.016

1.178.775

1.251.998

920.515

340.707

237.021

% due to corresponding period

 

 

30%

32%

23%

9%

6%

 

 

 

 

 

 

 

((A)+ (C)) / (G) Project finance as a % of Total debt due to corresponding periods

50%

38%

50%

55%

56%

91%

((B) + (D) + (F))/ (G) Corporate debt as a % of Total debt due to corresponding periods

50%

62%

50%

45%

44%

9%

                         

 

Covenant Ratios   

Table 56. Debenture covenants - 7th emission

 

 

1Q13

(Total receivables + Finished units) / (Total debt - Cash - project debt) >2 or <0

31,39

(Total debt - Project Finance debt - Cash) / (Equity + Min.) ≤ 75%

10,90%

(Total receivables + Revenues to be recognized + Inventory of finished units / Total debt - SFH + Obligations related to construction + costs to be incurred) > 1.5

1,81

 

 

Table 57. Debenture covenants - 5th emission (R$250 million)

 

 

1Q13

(Total debt – Project Finance debt - Cash) / Equity ≤ 75%

11,58%

(Total receivables + Finished units) / (Net debt) ≥ 2.2x

3,11

     

Note: Covenant status on September 30, 2012 

 

21


 
 

 

Provisions

 

Tabela 58. Provisions

General Provisions

1Q13

4Q12

Change Q-o-Q

1Q12

Change Y-o-Y

Sales Cancellations (Dissolutions)

(62.267)

(66.673)

-7%

(115.385)

-46%

Nonperforming loans

(27.995)

(31.265)

-10%

(36.715)

-24%

Additional Charges

(38.728)

(40.385)

-4%

(97.728)

-60%

Negative Margins

(12.158)

(15.267)

-20%

(22.499)

-46%

Cancelations

(2.196)

(4.628)

-53%

(29.462)

-93%

Penalty for Delays

(34.886)

(36.249)

-4%

(62.397)

-44%

Impairment

(48.391)

(46.771)

3%

(87.774)

-45%

Contingencies

(187.318)

(192.318)

-3%

(154.317)

21%

Warranty

(60.472)

(55.377)

9%

(40.587)

49%

Total

(474.412)

(488.933)

-3%

(646.864)

-27%

 

 

22


 
 

OUTLOOK 

First-quarter 2013 launches totaled R$308 million, a 34% decrease compared to 1Q12. The result represents 10% of the mid-point of full-year launch guidance of R$ 2.7 to R$ 3.3 billion and is broadly in keeping with the proportion of full-year launches historically occurring in the first quarter. Gafisa is expected to represent 42% of 2013 launches,  Alphaville 46% and Tenda the remaining 12%.

 

Table 58. Launch Guidance – 2013 Estimates  

 

Guidance

(2013E)

Actual numbers 1Q13A

Consolidated Launches

R$2.7 – R$3.3 bi

307mn

Breakdown by Brand

 

 

Launches Gafisa

R$1.15 – R$1.35 bi

83mn

Launches Alphaville

R$1.3 – R$1.5 bi

111mn

Launches Tenda

R$250 – R$450 mn

114mn

 

Given the focus on cash generation in 2012, Gafisa enters 2013 with a comfortable liquidity position and capital structure, having restructured debt and diversified funding sources and cash facilities. As of March 31, 2013, the net debt and investor obligations to equity ratio was 94%.

 

Table 59. Guidance Leverage (2013E)

 

Guidance

(2013)

Actual number 1Q13A

Consolidated

95%

94%

 

The Company expects an adjusted EBITDA margin in the range of 12% - 14% in 2013, as margins continue to be impacted by (1) the resolution of Tenda legacy projects, including the delivery of around 7,000 units in 2013, and (2) the delivery of lower margin projects launched by Gafisa in non core markets, expected to be substantially concluded in 2013.

Tabela 60. Guidance Adjusted EBITDA Margin (2013E)

 

Guidance

(2013)

Actual number 1Q13A

Consolidated

12% - 14%

10%

 

The Gafisa Group plans to deliver between 13,500 and 17,500 units in 2013, of which 27% will be delivered by Gafisa, 46% by Tenda and

the remaining 27% by Alphaville. Going forward, the Company expects to achieve full-year delivery guidance in line with an anticipated increase in deliveries in the coming quarters.

 

Table 61. Other Relevant Operational Indicators – Delivery Estimates 2013E

 

Guidance

(2013E)

Actual numbers 1Q13A

Consolidated Amounts

13,500 – 17,500

1,300

Delivery by Brand

 

 

# Gafisa Delivery

3,500 – 5,000

86

# Alphaville Delivery

3,500 – 5,000

419

# Tenda Delivery

6,500 – 7,500

795

 

 

23

 


 
 

CONSOLIDATED INCOME STATEMENT

R$000

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Net Operating Revenue

668.591

815.071

-18%

831.684

-20%

Operating Costs

(510.315)

(593.711)

-14%

(655.012)

-22%

Gross profit

158.276

221.360

-28%

176.672

-10%

Operating Expenses

 

 

 

 

 

Selling Expenses

(70.434)

(98.820)

-29%

(55.301)

27%

General and Administrative Expenses

(76.949)

(93.660)

-18%

(81.385)

-5%

Other Operating Rev / Expenses

(3.963)

(40.039)

-90%

(9.892)

-60%

Depreciation and Amortization

(10.297)

(35.396)

-71%

(17.443)

-41%

Equity

21.813

10.919

 

28.969

 

Operating results

18.446

(35.636)

-152%

41.620

-56%

 

 

 

 

 

 

Financial Income

23.531

17.958

31%

15.828

49%

Financial Expenses

(79.833)

(71.966)

11%

(65.895)

21%

 

 

 

 

 

 

Income (Loss) Before Taxes on Income

(37.856)

(89.644)

-58%

(8.447)

348%

 

 

 

 

 

 

Deferred Taxes

(4.657)

11.148

-142%

(3.781)

23%

Income Tax and Social Contribution

(2.984)

(4.683)

-36%

(12.472)

-76%

 

 

 

 

 

 

Income (Loss) After Taxes on Income

(45.497)

(83.179)

-45%

(24.700)

84%

 

 

 

 

 

 

Minority Shareholders

9.976

15.696

-36%

6.815

46%

 

 

 

 

 

 

Net Income (Loss)

(55.473)

(98.875)

-44%

(31.515)

76%

Note: The Income Statement reflects the impact of IFRS adoption, also for 2010.

 

 

24


 
 

 

CONSOLIDATED BALANCE SHEET 

 

1Q13

4Q12

Q-o-Q(%)

1Q12

Y-o-Y(%)

Current Assets

 

 

 

 

 

Cash and cash equivalents

1.443.644

1.567.755

-8%

847.121

70%

Receivables from clients

2.492.119

2.493.170

0%

2.980.105

-16%

Properties for sale

1.824.553

1.901.670

-4%

1.765.589

3%

Other accounts receivable

205.450

233.483

-12%

107.677

91%

Prepaid expenses and other

55.571

61.685

-10%

72.967

-24%

Properties for sale

141.644

139.359

2%

93.188

52%

Financial Instruments

7.800

9.224

-15%

10.391

-25%

 

6.170.781

6.406.346

-4%

5.877.038

5%

Long-term Assets

 

 

 

 

 

Receivables from clients

740.058

820.774

-10%

1.013.663

-27%

Properties for sale

435.086

274.034

59%

644.996

-33%

Deferred taxes

5.920

10.443

-43%

10.443

-43%

Other

288.690

280.243

3%

254.945

13%

 

1.469.754

1.385.494

6%

1.924.047

-24%

Intangible and Property and Equipment

278.738

276.232

1%

100.413

178%

Investments

611.101

646.590

-6%

867.170

-30%

 

 

 

 

 

 

Total Assets

8.530.374

8.714.662

-2%

8.768.668

-3%

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

Loans and financing

611.333

613.973

0%

680.767

-10%

Debentures

382.623

346.360

10%

348.577

10%

Obligations for purchase of land and advances from clients

501.918

503.889

0%

462.176

9%

Materials and service suppliers

153.896

154.763

-1%

125.474

23%

Taxes and contributions

197.124

222.578

-11%

243.799

-19%

Obligation for investors

184.819

161.373

15%

160.981

15%

Other

567.116

629.373

-10%

508.423

12%

 

2.598.829

2.632.309

-1%

2.530.197

3%

Long-term Liabilities

 

 

 

 

 

Loans and financing

1.326.500

1.290.561

3%

942.320

41%

Debentures

1.392.185

1.389.543

0%

1.600.068

-13%

Obligations for purchase of land

67.444

70.194

-4%

96.328

-30%

Deferred taxes

79.405

80.375

-1%

86.783

-9%

Provision for contingencies

148.371

149.790

-1%

134.309

10%

Obligation for investors

31.556

162.333

-81%

203.293

-84%

Other

241.541

244.669

-1%

458.394

-47%

 

3.287.002

3.387.465

-3%

3.521.495

-7%

Shareholders' Equity

 

 

 

 

 

Shareholders’ Equity

2.489.357

2.544.504

 

2.623.135

 

Non-controlling interests

155.186

150.384

3%

93.841

65%

 

2.644.543

2.694.888

-2%

2.716.976

-3%

Liabilities and Shareholders' Equity

8.530.374

8.714.662

-2%

8.768.668

-3%

 

25


 
 

CASH FLOW

 

1Q13

1Q12

Loss Before Taxes on Income

(37.856)

(8.447)

Expenses not affecting working capital

49.723

54.609

Depreciation and amortization

10.297

17.443

Impairment allowance

925

(4.282)

Expense on stock option plan

4.914

6.513

Penalty fee over delayed projects

(1.363)

11.186

Unrealized interest and charges, net

36.821

29.864

Deferred Taxes

(21.813)

(28.969)

Disposal of fixed asset

1.570

5.622

Warranty provision

2.870

1.015

Provision for contingencies

6.962

8.592

Profit sharing provision

12.547

13.327

Allowance (reversal) for doubtful debts

(9.966)

(2.965)

Profit / Loss from financial instruments

5.959

(2.737)

Clients

91.732

32.958

Properties for sale

(86.655)

79.421

Other receivables

(8.743)

27.184

Deferred selling expenses and prepaid expenses

6.114

(1.729)

Obligations on land purchases and advances from customers

(4.721)

(135.248)

Taxes and contributions

(24.246)

26.877

Trade accounts payable

(41.118)

17.488

Salaries, payroll charges

2.463

(211)

Other accounts payable

(9.654)

(41.442)

Assignment of credit receivables, net

 

 

Current account operations

44.908

(442)

Paid taxes

(4.192)

(12.471)

Cash used in operating activities

(22.245)

38.547

Investing activities

 

 

Purchase of property and equipment and deferred charges

(15.353)

(26.809)

Redemption of securities, restricted securities and loans

606.645

907.464

Investments in marketable securities, restricted securities and loans and securities, restricted securities and loans

(394.332)

(725.798)

Investments increase

(7.378)

(30.194)

Dividends receivables

2.000

0

Cash used in investing activities

191.582

124.663

Financing activities

 

 

Capital increase

0

0

Contributions from venture partners

(107.331)

(108.912)

Increase in loans and financing

304.899

247.458

Repayment of loans and financing

(269.516)

(139.640)

Assignment of credit receivables, net

(4.336)

0

Proceeds from subscription of redeemable equity interest in securitization fund

1.482

15.743

Operations of mutual

(6.333)

(7.422)

Dividends paid

 

 

Net cash provided by financing activities

(81.135)

7.227

Net increase (decrease) in cash and cash equivalents

88.202

170.437

Cash and cash equivalents

 

 

At the beginning of the period

587.956

69.548

At the end of the period

676.158

239.985

Net increase (decrease) in cash and cash equivalents

88.202

170.437

 

 

26


 
 

GAFISA SEGMENT INCOME STATEMENT 

 

R$000

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Net Operating Revenue

367.284

340.819

8%

420.258

-13%

Operating Costs

(279.517)

(263.638)

6%

(328.449)

-15%

Gross profit

87.767

77.181

14%

91.809

-4%

Operating Expenses

 

 

 

 

 

Selling Expenses

(34.441)

(45.646)

-25%

(28.463)

21%

General and Administrative Expenses

(30.373)

(40.700)

-25%

(32.990)

-8%

Other Operating Rev / Expenses

(7.536)

(14.772)

-49%

(5.055)

49%

Depreciation and Amortization

(6.486)

(31.107)

-79%

(14.625)

-56%

Equity

2.850

2.169

 

10.618

 

Operating results

11.781

(52.875)

-122%

21.294

-45%

 

 

 

 

 

 

Financial Income

8.228

5.384

53%

5.106

61%

Financial Expenses

(60.325)

(45.525)

33%

(45.705)

32%

 

 

 

 

 

 

Loss Before Taxes on Income

(40.316)

(93.016)

-57%

(19.305)

109%

 

 

 

 

 

 

Deferred Taxes

(15)

6.795

-100%

555

-103%

Income Tax and Social Contribution

(2.900)

(8.596)

-66%

(10.277)

-72%

 

 

 

 

 

 

Loss After Taxes on Income

(43.231)

(94.817)

-54%

(29.027)

49%

 

 

 

 

 

 

Minority Shareholders

(2.738)

(298)

819%

(6.616)

-59%

 

 

 

 

 

 

Net Loss

(40.493)

(94.519)

-57%

(22.411)

81%

 

27


 
 

 

ALPHAVILLE  SEGMENT INCOME STATEMENT 

 

R$000

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Net Operating Revenue

161.042

280.325

-43%

117.580

37%

Operating Costs

(80.910)

(144.703)

-44%

(51.774)

56%

Gross profit

80.132

135.622

-41%

65.806

22%

Operating Expenses

 

 

 

 

 

Selling Expenses

(15.214)

(27.594)

-45%

(6.545)

132%

General and Administrative Expenses

(23.944)

(21.286)

12%

(21.485)

11%

Other Operating Rev / Expenses

6.694

(7.275)

-192%

-

0%

Depreciation and Amortization

(888)

(640)

39%

(542)

64%

Equity pick up

(146)

7.732

 

3.092

 

Operating results

46.634

86.559

-46%

40.326

16%

 

 

 

 

 

 

Financial Income

4.601

2.818

63%

3.010

53%

Financial Expenses

(11.737)

(18.355)

-36%

(12.585)

-7%

 

 

 

 

 

 

Income Before Taxes on Income

39.498

71.022

-44%

30.751

28%

 

 

 

 

 

 

Deferred Taxes

(2.183)

2.023

-208%

-

0%

Income Tax and Social Contribution

978

(1.939)

-150%

(2.449)

-140%

 

 

 

 

 

 

Income After Taxes on Income

38.293

71.106

-46%

28.302

35%

 

 

 

 

 

 

Minority Shareholders

9.420

14.475

-35%

6.676

41%

 

 

 

 

 

 

Net Income

28.873

56.631

-49%

21.626

34%

 

 

28


 
 

TENDA SEGMENT INCOME STATEMENT 

 

R$000

1Q13

4Q12

Q-o-Q (%)

1Q12

Y-o-Y (%)

Net Operating Revenue

140.265

193.927

-28%

293.846

-52%

Operating Costs

(149.888)

(185.370)

-19%

(274.789)

-45%

Gross profit

(9.623)

8.557

-212%

19.057

-150%

Operating Expenses

 

 

 

 

 

Selling Expenses

(20.779)

(25.580)

-19%

(20.293)

2%

General and Administrative Expenses

(22.632)

(31.674)

-29%

(26.910)

-16%

Other Operating Rev / Expenses

(3.121)

(17.992)

-83%

(4.837)

-35%

Depreciation and Amortization

(2.923)

(3.649)

-20%

(2.276)

28%

Equity

19.109

1.018

 

15.259

 

Operating results

(39.969)

(69.320)

-42%

(20.000)

100%

 

 

 

 

 

 

Financial Income

10.702

9.756

10%

7.712

39%

Financial Expenses

(7.771)

(8.086)

-4%

(7.605)

2%

 

 

 

 

 

 

Loss Before Taxes on Income

(37.038)

(67.650)

-45%

(19.893)

86%

 

 

 

 

 

 

Deferred Taxes

(2.459)

2.330

-206%

(4.336)

-43%

Income Tax and Social Contribution

(1.062)

5.852

-118%

254

-518%

 

 

 

 

 

 

Loss After Taxes on Income

(40.559)

(59.468)

-32%

(23.975)

69%

 

 

 

 

 

 

Minority Shareholders

3.294

1.519

117%

6.755

-51%

 

 

 

 

 

 

Net Loss

(43.853)

(60.987)

-28%

(30.730)

43%

 

 

29


 
 

 

GAFISA  SEGMENT BALANCE SHEET 

 

1Q13

4Q12

Q-o-Q(%)

1Q12

Y-o-Y(%)

Current Assets

 

 

 

 

 

Cash and cash equivalents

375.900

473.540

-21%

173.369

117%

Receivables from clients

1.334.583

1.272.709

5%

1.895.208

-30%

Properties for sale

852.829

862.567

-1%

745.425

14%

Other accounts receivable

207.058

207.034

0%

277.098

-25%

Prepaid expenses

44.623

49.660

-10%

54.710

-18%

Properties for sale

15.900

14.000

14%

65.969

-76%

Financial Instruments

4.747

5.088

-7%

6.219

-24%

 

2.835.640

2.884.598

-2%

3.217.998

-12%

Long-term Assets

 

 

 

 

 

Receivables from clients

318.170

354.058

-10%

319.458

0%

Properties for sale

278.756

203.110

37%

366.088

-24%

Financial Instruments

3.470

5.480

-37%

5.480

-37%

Other

206.898

200.107

3%

182.937

13%

 

807.294

762.755

6%

873.963

-8%

Intangible and Property and Equipment

64.877

60.723

7%

53.513

21%

Investments

2.860.106

2.923.018

-2%

2.986.001

-4%

 

 

 

 

 

 

Total Assets

6.567.917

6.631.094

-1%

7.131.475

-8%

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

Loans and financing

386.506

382.541

1%

590.625

-35%

Debentures

208.164

184.279

13%

171.716

21%

Obligations for purchase of land and advances from clients

293.004

302.730

-3%

248.664

18%

Materials and service suppliers

75.507

58.011

30%

70.045

8%

Taxes and contributions

68.071

71.973

-5%

112.993

-40%

Obligation for investors

114.814

116.886

-2%

117.064

-2%

Other

628.990

589.479

7%

542.844

16%

 

1.775.056

1.705.899

4%

1.853.951

-4%

Long-term Liabilities

 

 

 

 

 

Loans and financing

956.957

910.867

5%

735.965

30%

Debentures

992.262

989.620

0%

1.150.283

-14%

Obligations for purchase of land

64.058

70.397

-9%

94.179

-32%

Deferred taxes

63.954

63.939

0%

63.225

1%

Provision for contingencies

68.675

69.797

-2%

73.756

-7%

Obligation for investors

19.535

119.535

-84%

129.721

-85%

Other

102.835

122.878

-16%

363.254

-72%

 

2.268.276

2.347.033

-3%

2.610.383

-13%

Shareholders' Equity

 

 

 

 

 

Shareholders' Equity

2.489.356

2.544.504

-2%

2.623.135

-5%

Non-controlling interests

35.229

33.658

5%

44.006

-20%

 

2.524.585

2.578.162

-2%

2.667.141

-5%

Liabilities and Shareholders' Equity

6.567.917

6.631.094

-1%

7.131.475

-8%

 

 

30


 
 

TENDA  SEGMENT BALANCE SHEET 

 

1Q13

4Q12

Q-o-Q(%)

1Q12

Y-o-Y(%)

Current Assets

 

 

 

 

 

Cash and cash equivalents

770.129

774.690

-1%

514.620

50%

Receivables from clients

840.168

916.262

-8%

942.341

-11%

Properties for sale

723.533

814.422

-11%

833.077

-13%

Other accounts receivable

307.613

245.512

25%

209.141

47%

Prepaid expenses

10.785

11.861

-9%

18.257

-41%

Properties for sale

125.743

125.360

0%

27.219

362%

 

-

-

0%

-

0%

Long-term Assets

2.777.971

2.888.107

-4%

2.544.655

0

Receivables from clients

 

 

 

 

 

Properties for sale

27.396

88.999

-69%

366.917

-93%

Deferred Taxes

116.613

26.593

339%

251.691

-54%

Other

-

0

0%

-

0%

 

77.417

75.297

3%

73.724

5%

Intangible and Property and Equipment

221.426

190.889

16%

692.332

-68%

Investments

31.865

33.686

-5%

40.255

-21%

 

210.600

192.488

9%

186.427

13%

Total Assets

 

 

 

 

 

 

3.241.862

3.305.170

-2%

3.463.669

-6%

Current Liabilities

 

 

 

 

 

Loans and financing

 

 

 

 

 

Debentures

133.068

155.745

-15%

32.760

306%

Obligations for purchase of land and advances from clients

174.459

162.081

8%

176.861

-1%

Materials and service suppliers

108.675

135.238

-20%

180.035

-40%

Taxes and contributions

30.849

29.646

4%

36.167

-15%

Obligation for investors

82.916

95.617

-13%

113.268

-27%

Other

 

0

0%

-

0%

 

136.528

134.149

2%

726.714

-81%

Long-term Liabilities

666.495

712.476

-6%

1.265.805

-47%

Loans and financing

 

 

 

 

 

Debentures

216.418

197.367

10%

101.849

112%

Obligations for purchase of land

399.923

399.923

0%

449.784

-11%

Deferred taxes

3.386

0

0%

4

84550%

Provision for contingencies

10.956

8.497

29%

12.452

-12%

Obligation for investors

63.951

64.373

-1%

45.650

40%

Other

-

0

0%

-

0%

 

45.009

41.915

7%

67.055

-33%

Shareholders' Equity

739.643

712.075

4%

676.794

9%

Shareholders' Equity

 

 

 

 

 

Non-controlling interests

1.797.550

1.845.739

-3%

1.498.661

20%

 

38.174

34.880

9%

22.409

70%

Liabilities and Shareholders' Equity

1.835.724

1.880.619

-2%

1.521.070

21%

 

31


 
 

 

ALPHAVILLE  SEGMENT BALANCE SHEET 

 

1Q13

4Q12

Q-o-Q(%)

1Q12

Y-o-Y(%)

Current Assets

 

 

 

 

 

Cash and cash equivalents

297.614

319.524

-7%

159.132

87%

Receivables from clients

317.369

304.199

4%

142.556

123%

Properties for sale

248.192

228.367

9%

187.087

33%

Other accounts receivable

22.388

33.038

-32%

26.750

-16%

Deferred selling expenses

163

163

0%

-

0%

Prepaid Expenses

-

0

0%

-

0%

Properties for sale

-

0

0%

-

0%

Financial Instruments

3.053

4.136

-26%

4.172

-27%

 

888.779

889.427

0%

519.697

71%

Long-term Assets

 

 

 

 

 

Receivables from clients

394.492

377.717

4%

327.288

21%

Properties for sale

39.717

44.330

-10%

27.217

46%

Financial Instruments

2.450

4.963

-51%

4.963

-51%

Other

6.479

6.469

0%

-1.716

-478%

 

443.138

433.479

2%

357.752

24%

Intangible and Property and Equipment

11.062

10.400

6%

6.645

66%

Investments

49.617

48.756

2%

73.461

-32%

 

 

 

 

 

 

Total Assets

1.392.596

1.382.062

1%

957.555

45%

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

Loans and financing

91.760

75.687

21%

57.382

60%

Debentures

-

0

0%

-

0%

Obligations for purchase of land and advances from clients

100.238

65.921

52%

33.477

199%

Materials and service suppliers

47.540

67.107

-29%

19.262

147%

Taxes and contributions

46.137

54.988

-16%

17.538

163%

Obligation for investors

70.005

44.487

57%

43.917

59%

Other

133.207

157.844

-16%

186.154

-28%

 

488.887

466.034

5%

357.730

37%

Long-term Liabilities

 

 

 

 

 

Loans and financing

153.125

182.327

-16%

104.506

47%

Debentures

-

0

0%

-

0%

Obligations for purchase of land

-

0

0%

2.145

-100%

Deferred taxes

4.495

7.939

-43%

11.105

-60%

Provision for contingencies

15.745

15.620

1%

14.903

6%

Obligation for investors

12.021

42.797

-72%

73.572

-84%

Other

132.959

115.363

15%

39.955

233%

 

318.345

364.046

-13%

246.186

29%

Shareholders' Equity

 

 

 

 

 

Shareholders' Equity

455.711

426.575

7%

282.911

61%

Non-controlling interests

129.653

125.407

3%

70.728

83%

 

585.364

551.982

6%

353.639

66%

Liabilities and Shareholders' Equity

1.392.596

1.382.062

1%

957.555

45%

 

 

32


 
 

 

 

 

GLOSSARY

Affordable Entry Level

Residential units targeted to the mid-low and low income segments with prices below R$200 thousand per unit.

Backlog of Results

As a result of the Percentage of Completion Method of recognizing revenues, we recognize revenues and expenses over a multi-year period for each residential unit we sell. Our backlog of results represents revenues minus costs that will be incurred in future periods from past sales.

Backlog of Revenues

As a result of the Percentage of Completion Method of recognizing revenues, we recognize revenues over a multi-year period for each residential unit we sell. Our backlog represents revenues that will be incurred in future periods from past sales.

Backlog Margin

Equals to “Backlog of Results” divided “Backlog of Revenues” to be recognized in future periods.

Land Bank

Land that Gafisa holds for future development paid either in Cash or through swap agreements. Each decision to acquire land is analyzed by our investment committee and approved by our Board of Directors.

LOT (Urbanized Lots)

Land subdivisions, or lots, with prices ranging from R$150 to R$600 per square meter

PoC Method

Under Brazilian GAAP, real estate development revenues, costs and related expenses are recognized using the percentage-of-completion (“PoC”) method of accounting by measuring progress towards completion in terms of actual costs incurred versus total budgeted expenditures for each stage of a development.

Pre-sales

Contracted pre-sales are the aggregate amount of sales resulting from all agreements for the sale of units entered into during a certain period, including new units and units in inventory. Contracted pre-sales will be recorded as revenue as construction progresses (PoC method). There is no definition of "contracted pre-sales'' under Brazilian GAAP.

PSV

Potential Sales Value.

SFH Funds

Funds from SFH are originated from the Governance Severance Indemnity Fund for Employees (FGTS) and from savings accounts deposits. Banks are required to invest 65% of the total savings accounts balance in the housing sector, either to final customers or developers, at lower interest rates than the private market.

Swap Agreements

A system in which we grant the land-owner a certain number of units to be built on the land or a percentage of the proceeds from the sale of units in such development in exchange for the land. By acquiring land through this system, we intend to reduce our cash requirements and increase our returns.

Operating Cash Flow

Operating cash flow (non-accounting)

 

 

 

ABOUT GAFISA 

Gafisa is a leading diversified national homebuilder serving all demographic segments of the Brazilian market. Established over 57 years ago, we have completed and sold more than 1,000 developments and built more than 12 million square meters of housing only under Gafisa’s brand, more than any other residential development company in Brazil. Recognized as one of the foremost professionally managed homebuilders, "Gafisa" is also one of the most respected and best-known brands in the real estate market, recognized among potential homebuyers, borrowers, lenders, landowners, competitors, and investors for its quality, consistency, and professionalism. Our pre-eminent brands include Tenda, serving the affordable/entry level housing segment, and Gafisa and Alphaville, which offer a variety of residential options to the mid to higher-income segments. Gafisa S.A. is traded on the Novo Mercado of the BM&FBOVESPA (BOVESPA:GFSA3) and on the New York Stock Exchange (NYSE:GFA).

(1) A Gafisa, neste 57 anos citados, fez e entregou muitos edificios comerciais no Rio e em São Paulo. Nos anos 70, o volume de comerciais em SP superava os de residências.

 
 

This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Gafisa. These are merely projections and, as such, are based exclusively on the expectations of management concerning the future of the business and its continued access to capital to fund the Company’s business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors; therefore, they are subject to change without prior notice.

 

The third-quarter financial statements were prepared and are being presented in accordance with the accounting practices adopted in Brazil (“Brazilian GAAP”), required for the years ended December 31, 2009. Therefore, they do not consider the early adoption of the technical pronouncements issued by CPC in 2009, approved by the Federal Accounting Council (“CFC”), required beginning on January 1, 2010. On November 10, 2009 the CVM, issued the deliberation nº 603 changed by deliberation nº 626, which provides the option for listed Companies to present 2010 quarterly information based on accounting practices in force at December 31, 2009. The scope of the works of our independent auditors does not include, the review non-financial information included in the earnings release, such as sales volume, value of sales, revenues to be recognized and costs to be incurred, among other non-accounting information, as well as absolute values or percentage derived from this information.

 

33

 

 

 

 

 

SIGNATURE

 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: May 13, 2013
 
Gafisa S.A.
 
By:
/s/ Alceu Duílio Calciolari

 
Name:   Alceu Duílio Calciolari
Title:     Chief Executive Officer