gfapr1q12_6k.htm - Generated by SEC Publisher for SEC Filing
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 6-K
 
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For the month of May, 2012

(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 REPORTS RESULTS FOR 1Q12

--- Gafisa Group delivered 6.165 units in 1Q12, double the number delivered during 1Q11 ---

--- Launches totaled R$463.7 million, with contracted sales of R$408.2 million ---

--- Consolidated sales velocity of 10.4%, or 16.1% ex-Tenda ---

--- Cash burn was R$76 million in the 1Q12 ---

--- 1/3 Tenda units returned to inventory in 4Q11 resold to qualified customers ---

 

IR Contact 

 

FOR IMMEDIATE RELEASE - São Paulo, May 8, 2012 – Gafisa S.A. (Bovespa: GFSA3; NYSE: GFA), Brazil’s leading diversified national homebuilder, today reported audited financial results for the ended March 31, 2012.

Duilio Calciolari, Chief Executive Officer, said: “During the first quarter of 2012 we focused on implementing the new strategy for the Company which: (i) established dedicated operating structures by brand; (ii) reducing risk at Tenda ; (iii) expanding the contribution of AlphaVille´s developments in our product mix and; (iv) refocusing the Gafisa brand on its core markets of São Paulo and Rio de Janeiro. We are making progress in achieving our operating cash flow guidance of R$500- R$700 million for 2012 with strong unit deliveries of 6.165, sales of inventory and positive cash flow generation at Tenda for the month of March.

Gafisa continues to witness demand throughout Brazil for the middle and middle to high income products represented by the Gafisa and AlphaVille brands, which sold over R$498.7 million during the quarter, with a consolidated sales velocity of launches of 48%. With the implementation of a narrowed geographic focus, Sao Paulo accounted for 100% of the R$214.7 million launches for the Gafisa segment in the 1Q12 and all of the AlphaVille projects of R$249.0 million launched in the same period were outside of Sao Paulo and Rio de Janeiro.”

 “Planning is being realigned to get 'back to the basics', which means focusing squarely on obtaining and maintaining operational consistency.” 

FINANCIAL RESULTS  

▲      Net revenue for the first quarter of 2012, recognized by the Percentage of Completion (“PoC”) method, increased 27% to R$928 million on a year-over-year basis.

▲      Gross profit gained 75% year-over-year to R$201.6 million, as a result of lower level revenue reversal, without the impact of budget cost adjustments as compared to the same period of previous year. Gross margin reached 22%, as it is still impacted by a higher contribution of lower margin projects under construction, whose sale and delivery we expect to conclude within the next fifteen months.

▲      EBITDA was R$105 million, 267.8% above the R$29 million posted during the first quarter of 2011. EBITDA for Gafisa and AlphaVille totaled R$82 million and R$40 million, respectively, while the EBITDA for Tenda was negative R$17 million. Higher volume of EBITDA YoY was a result of improved sales performance of inventories. EBITDA Margin reached 11.3% and ex-Tenda 20%, well above the 4% and 14%, respectively posted in the previous year.

▲      The 1Q12 net loss was R$31.5 million compared with R$13.7 million in1Q11. The 1Q12 loss was a result of revenue reverals related to R$340 million worth of contract dissolutions related to units at the low-income business, coupled with recognition of projects with lower margins as a result of the budget review announced in the previous quarter.

▲      At the end of March 31, 2012, the Company had approximately R$947 million in cash and cash equivalents compared to R$984 million at the end of 4Q11. The net debt to equity ratio reached 122% in the first quarter of 2012, from 118% in the 4Q11.

Luciana Doria Wilson 
Diego Santos Rosas 
Stella Hae Young Hong 
Email: ri@gafisa.com.br 
 
IR Website: 
www.gafisa.com.br/ir 
 
 
1Q12 Earnings Results Conference Call
May 9, 2012 
 
> 8am US EST 
In English (simultaneous translation from Portuguese)
+ 1-516-3001066 US EST 
Code: Gafisa 
 
> 9am Brasilia Time 
In Portuguese 
Phones: 
+55-11-3127-4971 (Brazil) 
Code: Gafisa 
 
Reply: 
+55-11-3127-4999 (EUA) 
Code: 10714688 
+55-11-3127-4999 (Brazil) 
Code: 18872753 
 
Webcast: www.gafisa.com.br/ir 
 
Shares 
GFSA3– Bovespa 
GFA – NYSE 
Total Outstanding Shares: 
432,699,5591 
 
Average daily trading volume 
(90 days2 ): R$100.2 million 
1)  Including 599,486 treasury shares 
 
2)  Up to March 30, 2011 

 

 

2

 

 
 

OPERATING RESULTS

 

▲     Project launches totaled R$464 million in 1Q12, a 10% decrease compared with 1Q11. The change reflects the restriction of Tenda launches to those that can be immediately transferred to financial institutions. The Gafisa and AlphaVille segments represented 46% and 54% of total launches, respectively.

▲      Consolidated pre-sales totaled R$408.2 million in the first quarter, a 50% decrease compared to 1Q11. Sales from inventory represented 45% of the 1Q12 total, while units launched during the same year accounted for the remaining 55%. First quarter sales velocity of launches reached 10.4%, or 16.1% ex-Tenda.

▲      The Group delivered 34 projects encompassing 6,165 units with a potential sales value of R$1.1 billion during 1Q12.

 

 

 

3

 

 

 

INDEX   
Recent Events  05 
Gafisa Group Key Numbers  06 
Consolidated Numbers For the Gafisa Group  07 

Gafisa Segment 

 08 

AlphaVille Segment 

 10 

Tenda Segment 

 11 
Income Statement  13 

Revenues 

 13 

Gross Profit 

 13 

Selling, General and Administrative Expenses 

 13 

EBITDA 

 13 

Net Income 

 14 

Backlog of Revenues and Results 

 14 
Balance Sheet  15 

Cash and Cash Equivalents 

 15 

Accounts Receivable 

 15 

Inventory 

 15 

Liquidity 

 16 

Covenant Ratios 

 16 
Outlook  17 
Appendix - Status of the Financial Completion of the Projects under Construction   18 
Group Gafisa Consolidated Income Statement  19 
Group Gafisa Consolidated Balance Sheet  20 
Cash Flow  21 
Glossary  22 

 

 

4

 

 
 

 

RECENT EVENTS   

 

Progress towards Operating Cash Flow Generation

Gafisa ended the first quarter with R$947 million in cash, which is similar to the balance at the end of 2011 after paying all obligations. In the 1Q12, preliminary consolidated cash burn was R$76 million Excluding the accrual of Gafisa debt of R$90 million in the 1T02, we should have a cash generation instead of a consumption. Our operational consolidated cash flow was neutral in the 1Q12 and in March, Tenda achieved positive operating cash flow.

Chart 1. Cash Consumption (3Q10 – 1Q12)

 

Updated Status of the Results by Brand

Gafisa is delivering results reflected the new turnaround strategy:

Gafisa: (1) We are delivering our lower margin projects. Higher concentration projects launched in New Markets that should be finished this year. (2) Improved sales performance related to inventory.

Tenda: (1) Since June the number of units contracted by financial institutions has accelerated, which in part reflects the addition of a new CEF unit dedicated to major homebuilders. (2) In the first quarter, Tenda transferred 2793 units to financial institutions or 23% of the mid-range of guidance provided for the full year of 10.000–14.000 customers. (3) In March, Tenda achieved positive operating cash flow.

AlphaVille: (1) Continues to launch high demand developments - two projects (Juiz de Fora and Sergipe) were launched in March with sales of 62% in just the final month of the quarter. (2) The results underscore the growing share of AlphaVille in the product mix. The brand accounted for 54 percent share of first-quarter consolidated launches, up from a 35 percent a year ago.

Record delivery units

In the first quarter of 2012, the Company also presented record delivery units. Gafisa delivered 34 projects encompassing 6,165 units, double the 3,060 delivered during 1Q11, with a potential sales value of R$1.1 billion during the first quarter. In March, the Gafisa Group achieved record unit deliveries of 3,338 units.

Chart 2. Delivered units (2007 – 1Q12)

 

 

 

5

 

 

 
 


KEY NUMBERS FOR THE GAFISA GROUP 

Table 1 – Operating and Financial Highlights – (R$000, unless otherwise specified)

1Q12

4Q11

QoQ(%)

1Q11

YoY(%)

Launches (%Gafisa)

463.740

582.247

-20%

512.606

-10%

Launches (100%)

568.046

719.973

-21%

594.214

-4%

Launches, units (%Gafisa)

1.283

1.256

2%

2.254

-43%

Launches, units (100%)

1.667

1.627

2%

2.736

-39%

Contracted sales (%Gafisa)

408.237

338.415

21%

822.220

-50%

Contracted sales (100%)

507.213

46.043

1002%

935.722

-46%

Contracted sales, units (% Gafisa)

501

-605

-183%

3.361

-85%

Contracted sales, units (100%)

899

-266

-438%

3.945

-77%

Contracted sales from Launches (%co)

222.944

381.140

-42%

296.317

-25%

Sales Velocity over launches (VSO) %

48,1%

49,0%

-89bps

57,8%

-973bps

Completed Projects (%Gafisa)

1.106.806

1.322.766

-16%

524.942

111%

Completed Projects, units (%Gafisa)

6.165

6.544

-6%

3.060

101%

 

 

 

 

 

 

Consolidated Land bank (R$) 

16.759.355

17.605.092

-5%

18.063.289

-7%

Potential Units

83.124

86.247

-4%

90.712

-8%

Number of Projects / Phases

154

156

-1%

183

-16%

 

 

 

 

 

 

Net revenues

927.833

93.316

894,3%

730.748

27,0%

Gross profit

201.579

-438.396

ns

115.160

75%

Gross margin

21,7%

-469,8%

ns

15,8%

597bps

Adjusted Gross Margin ¹

26,8%

ns

ns

20,9%

813 bps

Adjusted EBITDA ²

105.187

-798.184

ns

28.597

268%

Adjusted EBITDA margin ²

11,3%

ns

ns

3,9%

742 bps

Adjusted Net (loss) profit ²

-18.330

-1.010.989

ns

-33.089

ns

Adjusted Net margin ²

-3,4%

ns

ns

3,3%

ns

Net (loss) profit

-31.515

-1.029.904

ns

-43.292

ns

EPS (loss) (R$)

-0,0729

-2,3802

ns

-0,1003

ns

Number of shares ('000 final)

432.699

432.699

0%

431.384

0%

 

 

 

 

 

 

Revenues to be recognized

4.238.385

4.515.112

-6,1%

4.061.932

-4%

Results to be recognized ³

1.514.940

1.558.830

-2,8%

1.585.306

5%

REF margin ³

35,7%

34,5%

122bps

39,0%

-329bps

 

 

 

 

 

 

Net debt and investor obligations

3.321.491  

3.245.334

2%

2.741.682

21%

Cash and cash equivalent

947.138

983.660

-4%

926.977

2%

Equity

2.623.137

2.648.473

-1%

3.532.135

-26%

Equity + Minority shareholders

2.728.495

2.747.094

-1%

3.600.691

-24%

Total assets

9.367.678

9.506.624

-1%

9.093.244

3%

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

122%

118%

360 bps

76%

4559 bps

Note: Unaudited Finatial Operational data

 

 

1) Adjusted for capitalized interest

 

 

2) Adjusted for expenses on stock option plans (non-cash), minority shareholders

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

   Nm = not meaningful

6

 

 
 

 

 

CONSOLIDATED DATA FOR THE GAFISA GROUP   

 

Consolidated Launches

First-quarter 2012 launches totaled R$464 million, a 10% decrease compared to 1Q11, as the Group halted Tenda launches to focus on execution and delivery. The result represents 15% of the mid-range of full-year launch guidance of R$2.7 to R$3.3 billion and is in line with seasonally lower launches in the first quarter.

 

Four projects/phases were launched across 3 states in the first quarter, with AlphaVille accounting for 54% of launches and Gafisa the remaining 46%.

 

Consolidated Pre-Sales

First-quarter 2012 consolidated pre-sales totaled R$408.2 million, a 50% decrease compared to 1Q11. Sales from launches represented 55% of the total, while sales from inventory comprised the remaining 45%. Consolidated sales over supply reached 10.4%, compared to 21.4% in 1Q11, reflecting fewer launches to pursue remedial actions at Tenda. Excluding the Tenda brand, first-quarter sales over supply was 16.1%, compared to 17.7% in 4Q11 and 21.6% in 1Q11. The consolidated sales speed of launches reached 48.1%.

Table 2. Consolidated Launches and Pre-Sales (R$ million)

Launches

1Q12

4Q11

QoQ

1Q11

YoY

Gafisa Segment

214.690

340.645

-37%

228.303

-6%

Alphaville Segment

249.050

344.786

-28%

181.915

37%

Tenda Segment

-

(103.183)

ns

102.389

ns

Total

463.740

582.248

-20%

512.607

-10%

           

Pre-sales

1Q12

4Q11

QoQ

1Q11

YoY

Gafisa Segment

316.702

312.867

1%

423.512

-25%

Alphaville Segment

181.978

244.307

-26%

170.919

6%

Tenda Segment

(90.443)

(218.759)

ns

227.789

-140%

Total

408.237

338.415

21%

822.220

-50%

 

Results by Brand

Table 3. Main Operational & Financial Numbers - Contribution by Brand

 

Gafisa (A)

Alphaville (B)

Total (A) + (B)

Tenda (C)

Total (A) + (B) + C)

Deliveries (PSV R$mn)

699.715

121.993

821.708

285.099

1.106.807

Deliveries (% contribution)

51%

9%

ns

40%

100%

Deliveries (units)

2.715

994

3.709

2.456

6.165

Launches (R$mn)

214.690

249.050

463.740

-

463.740

Launches (% contribution)

46%

54%

100%

0%

100%

Launches (units)

410

873

1.283

-

1.283

Pre-sales

316.702

181.978

498.680

-90.443

408.237

Pre-Sales (% contribution)

78%

45%

122%

-22%

100%

Revenues

487.579

123.870

611.449

316.384

927.833

Revenues (% contribution)

58%

15%

73%

28%

100%

Gross Profit (R$mn)

113.010

59.980

172.990

28.589

201.579

Gross Margin (%)

23%

48%

28%

9%

22%

EBITDA (R$mn)

81.775

40.270

122.045

-16.858

105.187

Margin EBITDA (%)

17%

33%

20%

-5%

11%

EBITDA (% contribution)

78%

38%

ns

-16%

100%

 

7

 

 
 

 

GAFISA SEGMENT 

  

Focuses on residential developments within the upper, upper-middle, and middle-income segments, with unit prices exceeding R$250,000, located in 50 cities across 19 states.

 

Gafisa Segment Launches

 

First-quarter launches were stable at R$214.7 million and included 2 projects/phases across 1 state. São Paulo accounted for 100% of launches. First quarter sales velocity of Gafisa’s launches reached 13.9%, compared to 19.7% in 1Q11.

 

Note: Sales velocity refers to pre-sales  over the corresponding period . Neste In this calculation, we consider the stock adjusted to reflect the correct price.

Table 4. Launches by Market Region Gafisa Segment (R$ million)

%Gafisa - R$000

 

1Q12

4Q11

QoQ (%)

1Q11

YoY (%)

Gafisa

São Paulo

214.690

340.645

-37%

157.779

36%

 

Rio de Janeiro

-

-

0%

70.523

-100%

 

Other

-

-

0%

-

0%

 

Total

214.690

340.645

-37%

228.302

-6%

 

Units

410

1012

-59%

755

-46%

 

Table 5. Launches by unit price Gafisa Segment (R$ million)

%Gafisa - R$000

 

1Q12

4Q11

QoQ(%)

1Q11

YoY (%)

Gafisa

≤R$500K

62.099

297.711

-79%

115.359

-46%

 

>R$500K

152.591

42.933

255%

112.943

35%

 

Total

214.690

340.645

-37%

228.302

-6%

 

Gafisa Segment Pre-Sales

 

First quarter sales totaled R$316.7 billion, a 25% decrease compared to the previous year. Sales from inventory represented 21% of the 1Q12 total, while the remaining 79% came from units launched during the same year. The sales velocity of launches in 1Q12 decreased to 13.9%, as compared to a rate of 19.4% the previous year.
Note: Sales speed 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 6. Pre-Sales by Market Region Gafisa Segment (R$ million)

%co - R$000

 

1Q12

4Q11

QoQ(%)

1Q11

YoY (%)

Gafisa

São Paulo

243.782

231.516

5%

328.520

-26%

 

Rio de Janeiro

54.431

76.320

-29%

58.943

-8%

 

Other

18.489

5.031

268%

36.049

-49%

 

Total

316.702

312.867

1%

423.512

-25%

 

Units

647

722

-10%

910

-29%

 

Table 7. Pre-Sales by unit Price Gafisa Segment (R$ million)

%co - R$000

 

1Q12

4Q11

QoQ(%)

1Q11

YoY (%)

Gafisa

≤ R$500K

146.342

179.143

-18%

187.426

-22%

 

> R$500K

170.360

133.724

27%

236.087

-28%

 

Total

316.702

312.867

1%

423.512

-25%

 

Table 8. Pre-Sales by unit Price Gafisa Segment (# units)

%co - R$000

 

1Q12

4Q11

QoQ(%)

1Q11

YoY (%)

Gafisa

≤ R$500K

476

551

-14%

608

-22%

 

> R$500K

171

171

0%

301

-43%

 

Total

647

722

-10%

910

-29%

 

 

8

 

 
 

 

 

Gafisa Segment Delivered Projects

Gafisa delivered 18 projects with 2,715 units and an approximate PSV of R$699.7 million during 1Q12. The tables below list the products delivered in 1Q12:

Table 9- Delivered projects Gafisa Segment (1Q12)

 

 

 

 

 

Company

Project

Delivery

Launch

Local

% co

Units

PSV R$000

Gafisa

VNSJ Metropolitan

Jan-12

2009

São José - SP

100%

96

30.028

Gafisa

VNSJ Vitoria e Lafayette

Jan-12

2008

São José - SP

100%

192

57.518

Gafisa

Mansão Imperial F2

Jan-12

2010

São Bernardo do Campo - SP

100%

100

62.655

Gafisa

Reserva das Laranjeiras

Jan-12

2008

Rio de Janeiro - RJ

100%

108

61.818

Gafisa

Alegria F2 A

Feb-12

2010

Guarulhos - SP

100%

139

43.750

Gafisa

Paulista Corporate

Feb-12

2009

São Paulo - SP

100%

168

72.213

Gafisa

Neogarden

Feb-12

2008

Curitiba - PR

100%

144

40.427

Gafisa

Reserva Santa Cecília

Feb-12

2007

Volta Redonda - RJ

100%

122

23.835

Gafisa

JTR - Comercial

Feb-12

2007

Maceió - AL

50%

193

11.911

Gafisa

Parc Paradiso

Feb-12

2007

(Belém - PA)

90%

432

58.754

Gafisa

Supremo Ipiranga

Mar-12

2009

São Paulo - SP

100%

104

54.860

Gafisa

GPARK Árvores

Mar-12

2007

São Luis - MA

50%

240

29.978

Gafisa

Parque Barueri Fase 1

Mar-12

2008

Barueri - SP

100%

677

151.968

Gafisa

 

 

 

 

 

2.715

699.715

 

Projects launched Gafisa Segment

The following table displays Gafisa Segment projects launched during 1Q12:

Table 10 - Projects launched during Gafisa Segment (1Q12)

Projects

Launch Date

Local

% co

Units
(%co)

PSV
(%co)

% sales
31/03/12

Sales
31/03/12

1Q12

 

 

 

 

 

 

 

Duquesa - Lorian Qd2B

March

Osasco - SP

100%

130

152.591

29%

44.288

Maraville (Ana Maria Lote A)

March

Jundiaí - SP

100%

280

62.099

38%

23.575

Gafisa Total

 

 

 

410

214.690

32%

67.863

               

 

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

 

Table 11 –Land Bank Gafisa Segment – as of 1Q12

 

PSV - R$million
(%Gafisa)

%Swap
Total

%Swap
Units

%Swap
Financial

Potential units
(%co)

Potential units
(100%)

São Paulo

3.773.500

33%

32%

1%

7.871

9.011

Rio de Janeiro

1.153.386

46,84%

46,84%

0,00%

1.821

1.839

Total

4.926.886

36,23%

35,47%

0,76%

9.700

10.849

 

 

Table 12 –Adjusted EBITDA (R$000)

(R$'000) Consolidated

1Q12

4Q11

QoQ

1Q11

YoY

Net profit

-22.411

-364.326

-94%

-44.065

+49%

(+) Financial result

34.444

39.846

-14%

26.035

32%

(+) Income taxes

13.370

66.522

-80%

-1.523

nm

(+) Depreciation and Amortization

15.264

20.223

-25%

8.381

82%

(+) Capitalized interest

35.052

23.433

50%

32.406

8%

(+) Stock option plan expenses

6.034

3.486

73%

2.536

138%

(+) Minority shareholders

22

-622

-104%

100

-78%

Adjusted EBITDA

81.775

-211.438

-139%

23.869

243%

Net revenues

487.579

367.551

33%

383.092

27%

Adjusted EBITDA margin

17%

-58%

7430 bps

6%

1054 bps

 

9

 

 
 

 

 

ALPHAVILLE SEGMENT 

  

Focuses on the sale of residential lots, with unit prices between R$100,000 and R$500,000, and is present in 68 cities across 23 states and in the Federal District

 

AlphaVille Segment Launches

 

First-quarter launches totaled R$249.0 million, a 37% increase compared with 1Q11, and included 2 projects/phases across 2 states. The results reflect the growing share of AlphaVille in the product mix. The brand accounted for a 54 percent share of first-quarter consolidated launches, up from 35 percent a year ago.

Table 13 - Launches by Market Region AlphaVille Segment (R$ million)

%co - R$000

 

1Q12

4Q11

QoQ(%)

1Q11

YoY (%)

  AlphaVille 

 

 

 

 

 

 

 

Total

249.050

344.786

-28%

181.914

37%

 

Units

873

1.061

-18%

849

3%

 

 

Table 14 - Launches by unit price AlphaVille Segment - (R$ million)

%co - R$000

 

1Q12

4Q11

QoQ (%)

1Q11

YoY (%)

Alphaville

≤ R$200K;

-

13.721

-100%

62.260

-100%

 

> R$200K; ≤ R$500K

249.050

331.065

-25%

119.654

108%

 

> R$500K

-

-

0%

-

0%

 

Total

249.050

344.786

-28%

181.914

37%

 

AlphaVille Pre-Sales

 

First quarter pre-sales reached R$181.9 million, a 6% increase compared to 1Q11. The residential lots segment’s share of consolidated pre-sales increased to 45% from 25% in 1Q11. In 1Q12, sales velocity (sales over supply) was 22.2%, compared to 28.1% in 1Q11. First-quarter sales velocity from launches was 63.2%. Sales from launches represented 85% of total sales, while the remaining 15% came from inventory.

Projects demonstrating above average sales velocities include AlphaVille Sergipe, which was launched in March and achieved sales exceeding 65% in the first quarter, and AlphaVille Juiz de Fora, which was launched in February and achieved more than 55% sales in the same period.

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

    
 
Table 15 - Pre-Sales by Market Region AlphaVille Segment - (R$ million)       
%co - R$000    1Q12  4Q11  QoQ(%)  1Q11  YoY (%) 
AlphaVille             
  Total  181.978  244.307  -26%  170.919  6% 
  Units  761  837  -9%  896  -15% 
 
Table 16. Pre-Sales by unit Price AlphaVille Segment (R$ million)         
%Alphaville    1Q12  4Q11  QoQ (%)  1Q11  YoY (%) 
Alphaville  = R$200K;  6.155  25.481  -76%  92.297  -93% 
  > R$200K; = R$500K  186.379  170.394  9%  78.622  137% 
  > R$500K  -10.556  48.432  -122%  -  0% 
  Total  181.978  244.307  -26%  170.919  6% 
 
Table 17. Pre-Sales by unit Price AlphaVille Segment (# units)         
%Alphaville    1Q12  4Q11  QoQ (%)  1Q11  YoY (% 
Alphaville  = R$200K;  47  178  -73%  570  -92% 
  > R$200K; = R$500K  737  648  14%  236  126% 
  > R$500K  -23  10  -332%  -  0% 
  Total  761  837  -9%  896  -15% 
 
 

10

 

 
 

 

AlphaVille Segment Delivered Projects

AlphaVille delivered 3 projects with 994 units and an approximate PSV of R$122 million during 1Q12. The delivery date is based on the “delivery meeting” that takes place with customers, and not upon the physical completion, which is prior to the delivery meeting. The tables below list the products delivered in 1Q12:

 

Table 18 - Delivered projects (1Q12) - AlphaVille Segment

Company

Project

Delivery

Launch

Local

% co

Units

PSV R$000

Alphaville

Terras Alpha Petrolina I

jan/12

Dec-10

Petrolina/PE

75%

366

47.424

Alphaville

Terras Alpha Petrolina II

jan/12

Sep-11

Petrolina/PE

76%

286

41.499

Alphaville

Terras Alpha Foz do Iguaçu 2

mar/12

Dec-10

Foz do Iguaçu/PR

74%

342

33.069

Alphaville

 

 

 

 

 

994

121.993

 

Table 19 –-Projects Launched (1Q12) - AlphaVille Segment

Project

Date

Local

% co

Units(%co)

PSV (%co)

%

Sales

1Q12

 

 

 

 

 

 

 

Alphaville Juiz de Fora

Feb

Juiz de Fora - MG

65%

364

114.916

57%

65.142

Alphaville Sergipe

Mar

Sergipe - SE

74%

509

134.134

67%

89.939

Alplaville Total

 

 

 

873

249.050

62%

155.081

 

Table 20 –Land Bank AlphaVille Segment as of 1Q12

 

PSV - R$million
(%co )

%Swap
Total

%Swap
Units

%Swap
Financial

Potential units
(%co)

Potential units
(100%)

São Paulo

1.322.431

99%

0%

99%

6.282

13.127

Rio de Janeiro

723.324

100%

0%

100%

3.984

8.266

Other

5.463.287

98%

0%

98%

25.693

40.601

Total

7.509.042

99%

0%

99%

35.959

61.994

 

 

Table 21 –Adjusted EBITDA AlphaVille Segment

(R$'000) Consolidated

1Q12

4Q11

QoQ

1Q11

YoY

Net profit

21.626

32.390

-33%

26.958

-20%

(+) Financial result

8.200

3.904

110%

7.206

14%

(+) Income taxes

1.737

13.365

-87%

2.828

-39%

(+) Depreciation and Amortization

542

533

2%

288

88%

(+) Capitalized interest

1.155

2.455

-53%

1.584

-27%

(+) Stock option plan expenses

334

456

-27%

274

22%

(+) Minority shareholders

6.676

14.709

-55%

6.740

-1%

Adjusted EBITDA

40.270

67.812

-41%

45.878

-12%

Net revenues

123.870

226.310

-45%

113.624

9%

Adjusted EBITDA margin

33%

30%

255 bps

40%

-787 bps

 

11

 

 
 

 

                                                                                                                                                                                             

TENDA SEGMENT                                 

  

Focuses on affordable residential developments, with unit prices between R$80,000 and R$200,000, has 20 regional store fronts, and projects developed in 105 cities across 15 states.

 

Tenda Segment Launches

 

Reflecting remedial actions at Tenda and a focus on execution and delivery, no projects were launched in the first quarter. Throughout 2012, Tenda is not expected to represent more than 10% of consolidated launch guidance of between R$2.7 and R$3.3 billion.

 

Table 22. Launches by Market Region Tenda Segment (R$ million)

%Tenda - R$000

1Q12

4Q11

QoQ (%)

1Q11

YoY (%)

Tenda

São Paulo

-

-

0%

11.220

-100%

 

Rio de Janeiro

-

-

0%

-

0%

 

Minas Gerais

-

-103.183

-100%

19.926

-100%

 

Northeast

-

-

0%

-

0%

 

Others

-

-

0%

71.243

-100%

 

Total

-

-103.183

-100%

102.389

-100%

 

Units

-

-817

-100%

650

-100%

 

Table 23. Launches by Market Region Tenda Segment (R$ million)

%Tenda - R$000

1Q12

4Q11

QoQ (%)

1Q11

YoY (%)

Tenda

≤ MCMV

-

-103183

-100%

56.011

-100%

 

> MCMV

-

-

0%

46.378

-100%

 

Total

-

-103.183

-100%

102.389

-100%

 

Tenda Segment Pre-Sales

In keeping with a necessary change in strategy, 1Q12 gross pre-sales were stable at R$248.7 million. First quarter net pre-sales in the low income segment were negative R$90.4 million, compared to negative R$216 million in 4Q11.  The difference reflects the dissolution of R$339.6 million in contracts with potential homeowners who no longer qualified for a bank mortgage due to a change in circumstance, such as lack of financial capacity, increased income, move to dual household income, cessation of employment etc. Consequently, units, which are on average more than 70% complete, will be returned to inventory and eligible for resale to qualified customers. We collected on average a down payment of 6% of the units that will be resold through financial institutions, where according to the PoC, the percentage of the incurred cost of a unit’s value is received upfront. Going forward, pre-sales recognition and the remuneration of Tenda sales force will be based on the ability to pass mortgages on to banks.

 

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

 

Table 24. Pre-Sales by Market Region Tenda Segment (R$ million)

%Tenda - R$000

1Q12

4Q11

QoQ (%)

1Q11

YoY (%)

Tenda

São Paulo

-47.561

-18.585

156%

23.136

-306%

 

Rio de Janeiro

-190

-90.517

-100%

-3.919

-95%

 

Minas Gerais

-32.805

-79.683

-59%

65.291

-150%

 

Northeast

-20.629

-10.564

95%

40.850

-151%

 

Others

10.743

-19.411

-155%

102.431

-90%

 

Total

-90.443

-218.759

-59%

227.789

-140%

 

Units

-907

-2.163

-58%

1.555

-158%

 

Table 25. Pre-Sales by unit Price Tenda Segment (R$ million)

%Tenda - R$000

1Q12

4Q11

QoQ (%)

1Q11

YoY (%)

Tenda

≤ MCMV

-96.759

-172.415

-44%

73.296

-232%

 

> MCMV

6.316

-46.344

-114%

154.493

-96%

 

Total

-90.443

-218.759

-59%

227.789

-140%

             

 

Table 26. Pre-Sales by unit Price Tenda Segment (# units)

%Tenda - R$000

1Q12

4Q11

QoQ (%)

1Q11

YoY (%)

Tenda

≤ MCMV

-941

-1.800

-48%

619

-252%

 

> MCMV

35

-364

-110%

937

-96%

 

Total

-907

-2.163

-58%

1.555

-158%

 

12

 

 
 

 

Tenda Segment Delivered Projects

During 1Q12, consolidated Tenda delivered 18 projects/phases, 2,456 units and an approximate PSV of R$285.1 million. The tables below list the products delivered in 1Q12:

Table 27 - Delivered projects Tenda Segment (1Q12)

Company

Project

Delivery

Launch

Local

% co

Units

PSV R$

Tenda

Ferrara - F1

Feb-12

2007

Poá

100%

36

8.439

Tenda

Ferrara - F2

Feb-12

2007

Poá

100%

76

8.439

Tenda

Portal do Sol Life III (Bl 24 e 25)

Feb-12

2009

Belford Roxo

100%

64

5.950

Tenda

Portal do Sol Life IV (Bl 22 e 23)

Feb-12

2010

Belford Roxo

100%

64

5.971

Tenda

Alta Vista (Antigo Renata)

Mar-12

2008

São Paulo

100%

160

12.935

Tenda

Jardim São Luiz Life - F2 (Bloco 12)

Mar-12

2007

São Paulo

100%

20

2.149

Tenda

Reserva dos Pássaros - F1 (Bl 5)

Mar-12

2006

São Paulo

100%

66

37.084

Tenda

Parque Baviera Life - F1 (Bl 1 a 9)

Mar-12

2008

São Leopoldo

100%

180

37.763

Tenda

Vivendas do Sol I

Mar-12

2009

Porto Alegre

100%

200

14.000

Tenda

Portal do Sol Life V (Bl 19 a 21)

Mar-12

2010

Belford Roxo

100%

96

9.431

Tenda

Portal do Sol Life VI (Bl 17 e 18)

Mar-12

2010

Belford Roxo

100%

64

6.146

Tenda

Quintas do Sol Ville II - F1 (Qd 1 e 3 a 5)

Mar-12

2007

Feira de Santana

100%

241

22.725

Tenda

Quintas do Sol Ville II - F2 (Qd 2)

Mar-12

2008

Feira de Santana

100%

90

22.353

Tenda

Salvador Life II

Mar-12

2008

Salvador

100%

180

12.780

Tenda

Boa Vista

Mar-12

2008

Belo Horizonte

100%

38

3.838

Tenda

Maratá

Mar-12

2008

Goiânia

100%

400

27.200

Tenda

Reserva Campo Belo (Antigo Terra Nova II)

Mar-12

2007

Goiânia

100%

241

16.320

Tenda

GPARK Pássaros

Mar-12

2008

São Luis

50%

240

31.576

Total

 

 

 

 

 

2.456

285.099

 

               

Tenda Segment Operations

Since June, 2011 we have witnessed an acceleration in the number of units contracted by financial institutions, which is in part likely due to the addition of a new CEF unit dedicated to major homebuilders. This improvement resulted in the delivery of 2,336 units in 1Q12. Transferred units totaled 2,500 units during the first quarter. We expect the number of units transferred to increase throughout 2012.

Table 28 –Land Bank Tenda Segment (1Q12)

 

PSV - R$million
(% Tenda)

%Swap
Total

%Swap
Units

%Swap
Financial

Potential units
(%Gafisa)

Potential units
(100%)

São Paulo

2.134.723

31,0%

30,1%

0,96%

15.851

17.027

Rio de Janeiro

1.101.918

0,0%

0,0%

0,0%

12.764

12.764

Nordeste

417.868

21,0%

21,0%

0,0%

3.700

3.700

Minas Gerais

668.918

46,7%

21,9%

24,8%

5.151

5.303

Total

4.323.427

30,4%

24,2%

6,2%

37.466

38.793

 

 

Table 29 – Adjusted EBITDA Tenda

(R$'000) Consolidated

1Q12

4Q11

QoQ

1Q11

YoY

Net profit

(30.730)

(697.968)

-96%

(26.185)

17%

(+) Financial result

(469)

(1.832)

-74%

(2.243)

-79%

(+) Income taxes

5.032

35.368

-86%

(20.162)

-125%

(+) Depreciation and Amortization

2.527

5.699

-56%

3.697

-32%

(+) Capitalized interest

6.663

3.289

103%

3.191

109%

(+) Stock option plan expenses

145

553

-74%

553

-74%

(+) Non recurring expenses

-

-

0%

-

0%

(+) Minority shareholders

(26)

333

-108%

-

0%

Adjusted EBITDA

(16.858)

(654.558)

-97%

(41.150)

-59%

Net revenues

316.384

-500.545

-146%

234.032

-1%

Adjusted EBITDA margin

-5,3%

131%

-13803bps

-18%

1032 bps

 

 

13

 

 
 

 

INCOME STATEMENT 

Revenues

On a consolidated basis, 1Q12 net revenues totaled R$928 million, a 27% increase from 1Q11. During 1Q12, the Gafisa brand accounted for 58% of net revenues, AlphaVille comprised 15% and Tenda the remaining 27%. The below table presents detailed information about pre-sales and recognized revenues by launch year:

Tabela 30 – Pre-sales and recognized revenues by launch year

 

 

1Q12

1Q11

 

 Launch year

PreSales

% PreSales

Revenues

%

PreSales

% PreSales

Revenues

%

Gafisa

2012 Launches

67.863

21%

0

0%

-

0%

0

0%

 

2011 Launches

81.243

26%

114.983

24%

108.360

26%

5.005

1%

 

2010 Launches

56.423

18%

164.613

34%

220.891

52,157%

111.274

29%

 

≤ 2009 Launches

111.174

35%

207.984

43%

94.262

22,257%

266.814

70%

 

Total Gafisa

316.702

100%

487.579

100%

423.512

100%

383.092

100%

                   

Alphaville

2012 Launches

155.081

85%

3.510

3%

-

0%

-

0%

 

2011 Launches

16.062

9%

35.563

29%

114.108

67%

10.560

  

 

2010 Launches

3.213

2%

50.697

41%

44.104

26%

40.339

  
 

≤ 2009 Launches

7.622

4%

34.100

28%

12.706

7%

62.724

55%

 

Total Alphaville

181.978

100%

123.870

100%

170.919

100%

113.624

55%

                   

 

Total Tenda

(90.443)

100%

316.384

0%

227.789

100%

234.032

100%

 

 

                

Total

 

408.237

  

927.833

  

822.220

  

730.748

  
                   

 

 

Gross Profit

On a consolidated basis, 1Q12 gross profit totaled R$202 million, a increase of 75% over 1Q11, on the back of lower level revenue reversal and lower impact of budget cost adjustments, as compared to the same period of previous year. Gross margin reached 23.9%, still below normalized levels, as it is still impacted by a higher contribution of lower margin projects under construction, whose sale and delivery we expect to conclude within the next fifteen months.

Table 31 – Gross Margin (R$)

 

 

 

(R$'000) Consolidated

1Q12

1Q11

YoY

Gross Profit

201.579

115.160

75%

Gross Margin

22%

16%

38%

Gross Margin (ex-Tenda)

28%

21%

700bps

Table 32 – Capitalized Interest

 

 

 

(R$million) Consolidated

1Q12

4Q11

1Q11

Opening balance

221.816

177.494

146.544

Capitalized interest

20.789

73.499

41.454

Interest capitalized to COGS

(42.870)

(29.177)

(37.181)

Closing balance

199.735

221.816

150.817

       

Selling, General, And Administrative Expenses (SG&A)

SG&A expenses totaled R$137 million in 1Q12, a 18% increase on the R$117 million in expenses posted in 1Q11. Selling expenses decreased 2% to R$58 million. Administrative expenses reached R$79 million, a 40% increase over the R$56 million posted in 1Q11. The main reasons for SG&A expenses increase were:  1)provision related to the distribution of variable compensation, 2)Administrative expenses related to the expantion of Alphaville operations and 3)new structure in smaller cost scale with the new strategy to segregate and give focus on each brand.

 

Table 33 – SG&A Expenses (R$)

 

 

 

(R$'000) Consolidated

1Q12

4Q11

QoQ

1Q11

YoY

Selling expenses

58.486

211.408

-72%

59.807

-2%

G&A expenses

78.984

75.051

5%

56.307

40%

SG&A

137.470

286.459

-52%

116.765

18%

           

 

14

 

 
 

 

 

Consolidated Adjusted EBITDA

EBITDA was R$105 million, 267.8% above the R$29 million posted during the first quarter of 2011. EBITDA for Gafisa and AlphaVille totaled R$82 million and R$40 million, respectively, while the EBITDA for Tenda was negative R$17 million. Higher volume of EBITDA YoY was a result of improved sales performance of inventories and a lower dissolutions compared to the previous period. EBITDA Margin reached 11.3% and ex-Tenda 20%, well above the 4% and 14%, respectively posted in the previous year.

Table 34 - Adjusted EBITDA

 

 

 

 

(R$'000) Consolidated

1Q12

4Q11

QoQ

1Q11

YoY

Net Profit (Loss)

(31.515)

(1.029.904)

-97%

(43.292)

-27%

(+) Financial result

42.175

41.919

1%

30.999

36%

(+) Income taxes

20.139

115.255

-83%

(18.858)

-207%

(+) Depreciation and Amortization

18.333

26.455

-31%

12.365

48%

(+) Capitalized Interest Expenses

42.870

29.177

47%

37.181

15%

(+) Stock option plan expenses

6.513

4.495

45%

3.363

94%

(+)Non recurring expenses

0

0

0%

0

0%

(+) Minority shareholders

6.672

14.420

-54%

6.839

-2%

Adjusted EBITDA

105.187

(798.184)

-113%

28.597

268%

Net Revenue

927.833

93.316

894%

730.748

27%

Adjusted EBITDA margin

13%

nm

nm

4%

856bps

Adjusted EBITDA (ex Tenda)

122.045

-143.626

nm

69.747

75%

Adjusted EBITDA Mg (ex Tenda)

11%

nm

nm

14%

592bps

           

Note: We adjust our EBITDA for expenses associated with stock option plans, as this is a non-cash expense .

 

Depreciation And Amortization

Depreciation and amortization in 1Q12 was R$18 million, an increase of R$6 million when compared to the R$12 million recorded in 1Q11, mainly due to higher showroom depreciation.

Financial Results

Net financial expenses totaled R$42 million in 1Q12, compared to net financial result of R$31 million in 1Q11 as a result of a higher level of leverage.

Taxes

Income taxes, social contribution and deferred taxes for 1Q12 amounted to R$20 million, compared to  R$19 million in 1Q11

Adjusted Net Income

The adjustments mentioned related to costs and expenses, as well as financial expenses, had a direct impact on the company's profitability, resulting in a net loss in 1Q12 of R$18.3 million compared to a net loss of R$33 million in the same period of 2011.

Backlog Of Revenues And Results

The backlog of results to be recognized under the PoC method reached R$4.2 billion in 1Q12, 4.3% higher than the R$4.06 billion posted in 1Q11 and 6.2% lower than the R$4.5 billion posted in 4Q11. The consolidated margin for the quarter was 35,7%, higher than the 39% in 1Q11 and 123 bps higher than the 34.5% posted in the 4Q11, mainly as a result of budget cost revisions and lower results to be recognized. The table below shows the backlog margin by segment:

 

Table 35 - Results to be recognized (REF)

 

 

Gafisa

Tenda

Alphaville

Gafisa Group

Gafisa ex- Tenda

Results to be recognized

2.456

1.056

726

4.238

3.182

Costs to be incurred (units sold)

-1.590

-788

-345

-2.723

-1.935

Results to be Recognized

865

268

381

1.515

1.247

Backlog Margin

35,2%

25,4%

52,5%

35,7%

39,2%

           

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

Tabela 36 – Results to be recognized (REF) Gafisa Group

 

 

1Q12

4Q11

T/T

1T11

A/A

Results to be recognized

4.238.385

4.515.112

-6,1%

4.061.932

4%

Costs to be incurred (units sold)

(2.723.445)

-2.956.282

-7,9%

-2.476.626

-9%

Results to be Recognized

1.514.940

1.558.830

-2,8%

1.585.306

-5%

Backlog Margin

35,7%

34,5%

122bps

39,0%

-329bps

           

 

15

 

 
 

 

BALANCE SHEET 

Cash and Cash Equivalents

On March 31, 2012, cash and cash equivalents reached R$947 million. We believe our cash position is sufficient to execute our development plans, and we see no need to increase this current level.

 Accounts Receivable

At the end of 1Q12, total accounts receivable decreased 4% to R$9.1 billion, from R$9.5 billion in 4Q11.  

Table 37 - Total receivables

 

 

 

 

(R$000) Consolidated

1Q12

4Q11

QoQ

1Q11

YoY

Receivables from developments – LT (off balance sheet)

4.398.947

4.686.158

-6%

4.215.809

4%

Receivables from PoC – ST (on balance sheet)

3.638.581

3.962.574

-8%

3.775.914

-4%

Receivables from PoC – LT (on balance sheet)

1.101.138

863.874

27%

1.087.285

1%

Total

9.138.666

9.512.606

-4%

9.079.008

1%

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 38 – Inventory (Balance Sheet at cost)

(R$000) Consolidated

1Q12

4Q11

QoQ

1Q11

YoY

Land

1.226.418

1.244.358

-1%

1.014.629

21%

Units under construction

1.438.026

1.576.780

-9%

1.157.146

24%

Completed units

196.700

119.340

65%

333.168

-41%

Total

2.861.144

2.940.478

-3%

2.504.943

14%

 

Inventory at market value totaled R$3.5 billion in 1Q12, which is in line with the R$3.5 billion registered in 4Q11. On a consolidated basis, our inventory is at a level of 10 months of sales based on LTM sales figures.

At the end of 1Q12, finished units accounted for 9% of total inventory. We continue to focus on reducing finished inventory primarily concentrated under the Gafisa brand, which represents 3% of total finished inventory of R$3.5 billion and 1/3 of finished units of R$322 million.

Table 39 - Inventories per completion status  

Company

Not started

Up to 30% constructed

30% to 70% constructed

More than 70% constructed

Finished units¹

Total 1Q12

Gafisa

409.334

589.555

472.611

401.594

84.757

1.957.850

AlphaVille

0

263.816

134.627

72.551

165.263

636.258

Tenda

86.492

209.688

225.118

321.334

72.404

915.036

Total

495.826

1.063.059

832.356

795.479

322.424

3.509.143

Note: Adjusted by cancellations and dissolutions. ¹Completed units (at market value): value adjusted according to incurred costs, but already delivered to customers (general meeting with customers). Given the same accounting criteria, the value would be R$186.4 million.

Consolidated inventory at market value remained stable on a sequential basis. The market value of Gafisa inventory of R$1.96 billion, 56% of total inventory, was stable at the end of 1Q12. The market value of AlphaVille inventory totaled R$636 million at the end of 1Q12, a 11% increase compared to the end of 4Q11. Tenda inventory was valued at R$915 million at the end of 1Q12, a 2% decrease compared to the end of 4Q11.

Table 40. Inventory at Market Value 1Q12 x 4Q11

 

Inventories BoP1 

Launches

Dissolution

Pre-Sales

Price Adjust + Other

Inventories EoP2 

% QoQ3 

VSO4 

Gafisa

2.018.627

214.690

 

316.702

41.235

1.957.850

-3%

14%

Alphaville

567.285

249.050

 

181.978

1.901

636.258

11%

22%

Total ex-Tenda

2.585.912

463.740

-

498.680

43.136

2.594.108

0%

16%

Tenda

932.503

-

(339.585)

249.142

(107.910)*

915.035

-2%

-11%

Total

3.518.415

463.740

(339.585)

747.822

(64.774)

3.509.143

0%

10%

Note: *R$108 million refers to dissolution related to cancellation of project launched under the Tenda, that may be re-launched in the future. 1) BoP beginning of the period – 4Q11. 2) EoP end of the period – 1Q12.  3) % Change 1Q12 versus 4Q11. 4)  1Q12 sales velocity.

 

16

 

 
 

 

Liquidity

As of March 31, 2012, Gafisa had a cash position of R$947 million. On the same date, Gafisa’s debt and obligations to investors totaled R$4.3 billion, resulting in net debt and obligations of R$3.3 billion. The net debt and investor obligations to equity and minorities ratio was 122% compared to 118% in 4Q11, due to R$76 million cash burn in the first quarter. Our operational consolidated cash flow was neutral in the 1Q12 and in March, Tenda achieved positive operating cash flow. Excluding project finance, this net debt/equity ratio reached 48.3%.

Gafisa’s cash position and liquidity are sufficient to execute our development plans. Gafisa’s current debt maturity structure includes 32% of the total debt due within one year. We expect positive operating cash flow of between R$500 – R$700 million in 2012. Gafisa has additional receivables (from units already delivered) of more than R$500 million available for securitization and R$370 million of finished units in inventory. We also highlight our current debt covenants ratios, as shown below in the table 45.

Currently we have access to a total of R$1.6 billion in construction finance lines contracted with banks and R$0.9 billion in lines in the process of approval. Also, Gafisa has R$2.4 billion available in construction finance lines of credit for future developments. The following tables provide information on our debt position:

Table 41 - Indebtedness and Investor obligations

 

 

Type of obligation (R$000)

1Q12

4Q11

QoQ

1Q11

YoY

Debentures - FGTS (project finance)

1.244.225

1.214.258

2%

1.239.816

0%

Debentures - Working Capital

704.420

684.942

3%

688.800

2%

Project financing (SFH)

817.457

684.642

19%

755.652

8%

Working capital

1.135.615

1.168.085

-3%

604.391

88%

Total consolidated debt

3.904.356

3.755.808

4%

3.288.659

18%

Consolidated cash and availabilities

947.138

983.660

-4%

926.977

2%

Investor Obligations

364.274

473.186

-23%

380.000

-4%

Net debt and investor obligations

3.321.492

3.245.334

2%

2.741.682

21%

Equity + Minority Shareholders

2.728.495

2.747.094

-1%

3.751.958

-24%

(Net debt + Obligations) / (Equity + Noncontrolling interests)

122%

118%

360bps

73%

4559bps

(Net debt + Ob.) / (Eq + Min.) - Exc. Proj Fin (SFH + FGTS)

46%

49%

-284bps

20%

2628bps

           

 

Table 42 - Debt maturity

 

 

 

 

 

(R$million)

Average Cost (p.a.)

Total

Until Mar/13

Until Mar/14

Until Mar/15

Until Mar/16

After Mar/16

Debentures - FGTS (proj. finance)

TR + (8.22% - 10.20%)

1.244.225

196.791

598.404

449.030

-

-

Debentures - Working Capital

CDI + (0.72% - 1.95%)

704.420

151.786

123.895

272.648

149.510

6.581

Project Financing (SFH)

TR + (8.30% - 12.68%)

817.457

469.331

260.022

70.698

17.406

-

Working Capital

CDI + (1.30% - 2.55%)

1.135.615

394.947

290.496

190.277

141.166

118.729

Total consolidated debt

11.82%

3.904.356

1.215.116

1.273.195

982.653

308.082

125.310

Investors Obligations

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

364.274

160.981

171.737

15.133

9.885

6.538

Total consolidated debt

 

4.268.630

1.376.097

1.444.932

997.786

317.967

131.848

% Total

 

100%

32%

34%

23%

7%

3%

               

 

Debt Covenants

Following the modification of certain debt covenants, per the agreement with debt holders, Gafisa avoided triggering covenants and remained in compliance with all debt covenants.

Covenant Ratios

Table 43 - Debenture covenants - 7th emission

 

 

1Q12

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

12,8x

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

34,8%

(Total receivables + Revenues to be recognized + Inventory of finished units / Total debt - SFH + Obligations related to construction + costs to be incurred) > 1,5

1,75

 

 

Table 44 - Debenture covenants - 5th emission (R$250 million)

 

 

1Q12

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

34,8%

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

2,4x

Note: Covenant status on March 31, 2012

 

   

 

 

17

 

 
 

 

 

OUTLOOK 

With the introduction of a new strategy and organizational structure, Gafisa is already making progress toward achieving its 2012 guidance. Launches for 2012 are expected to be between R$2.7 and R$3.3 billion, reflecting a new, more targeted regional focus and the deliberate slowdown of the Tenda business. Gafisa should represent 50%, Tenda 10% and AlphaVille 40% of launches. For the first quarter of 2012, the Gafisa Group launched R$464 million.

 

The Gafisa Group plans to deliver between 22,000 and 26,000 units in 2012 of which 30% will be delivered by Gafisa, 50% by Tenda and the remaining 20% by AlphaVille. During the first quarter of 2012, the Company delivered 6,165 units and transferred 2,793 Tenda units to financial institutions.

 

Finally, the Company expects to generate between R$500 million and R$700 million in operating cash flow for the full year of 2012. At March 31, 2012, the Company had R$947 million in cash and cash equivalents. The key drivers of cash flow generation include: (i) our ability to deliver units at Gafisa; (ii) the transfer of Tenda units to financial institutions; (iii) the sale of inventory; (iv) the securitization of receivables; (v) the sale of non-strategic land.

 

18

 

 
 

 

 

CONSOLIDATED INCOME STATEMENT

R$000

1Q12

4Q11

QoQ

1Q11

YoY

Net Operating Revenue

927.833

93.316

894,3%

730.748

27,0%

Operating Costs

(726.254)

(531.712)

36,6%

(615.588)

18,0%

Gross profit

201.579

(438.396)

-146,0%

115.160

75,0%

Operating Expenses

 

 

 

 

 

Selling Expenses

-58.486

-211.408

-72%

-59.807

-2%

General and Administrative Expenses

-78.984

-75.051

5%

-56.307

40%

Other Operating Revenues / Expenses

-8.305

-107.002

-92%

-10.993

-24%

Depreciation and Amortization

-18.333

-26.454

-30%

-12.365

48%

Operating results

37.471

-858.311

-104%

-24.312

-254%

 

 

 

 

 

 

Financial Income

19.689

20.784

-5%

24.664

-20%

Financial Expenses

-61.864

-62.702

-1%

-55.662

11%

 

 

 

 

 

 

Income Before Taxes on Income

-4.704

-900.229

-99%

-55.310

-91%

 

 

 

 

 

 

Deferred Taxes

6.319

-79.747

108%

27.008

-77%

Income Tax and Social Contribution

-13.820

-35.508

61%

-8.150

-70%

 

 

 

 

 

 

Income After Taxes on Income

(24.843)

(1.015.484)

-97%

(36.452)

-32%

 

 

 

 

 

 

Minority Shareholders

-6.672

-14.420

-54%

-6.840

-2%

 

 

 

 

 

 

Net Income

(31.515)

(1.029.904)

-97%

(43.292)

-27%

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

 

19

 

 
 

 

 

CONSOLIDATED BALANCE SHEET 

 

1Q12

4Q11

QoQ

1Q11

YoY

Current Assets

 

 

 

 

 

Cash and cash equivalents

947.138

983.660

-4%

926.977

2%

Receivables from clients

3.638.581

3.962.574

-8%

3.775.914

-4%

Properties for sale

2.088.930

2.049.084

2%

2.043.382

2%

Other accounts receivable

157.900

144.585

9%

210.993

-25%

Deferred selling expenses

58.989

56.903

4%

10.375

469%

Prepaid expenses

15.723

16.629

-5%

11.918

32%

Properties for sale

93.188

93.188

0%

0

0%

Financial Instruments

10.391

7.735

34%

0

0%

 

7.010.840

7.314.358

-4%

6.979.559

0.4%

Long-term Assets

 

 

 

 

 

Receivables from clients

1.101.138

863.874

28%

1.087.285

1%

Properties for sale

679.026

798.206

-15%

461.561

47%

Deferred taxes

0

0

0%

70.259

-100%

Other

290.849

247.909

17%

158.510

84%

 

2.071.013

1.909.989

8%

1.777.615

16,33%

Investments

285.825

282.277

1%

336.070

-15 %

 

 

 

 

 

 

Total Assets

9.367.678

9.506.624

-2%

9.093.244

3 %

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

Loans and financing

866.539

1.135.543

-24%

838.334

3%

Debentures

348.577

1.899.200

-82%

71.562

387%

Obligations for purchase of land and advances from clients

498.193

610.555

-18%

438.462

14%

Materials and service suppliers

148.965

135.720

10%

178.443

-17%

Taxes and contributions

278.678

250.578

11%

237.419

17%

Obligation for investors

160.981

219.796

-27%

0

0%

Other

558.805

564.547

-1%

411.153

36%

 

2.860.738

4.815.939

-41%

2.175.373

32%

Long-term Liabilities

 

 

 

 

 

Loans and financings

1.089.172

721.067

51%

521.708

109%

Debentures

1.600.068

0

 

1.857.055

-14%

Obligations for purchase of land

127.667

177.135

-28%

187.920

-32%

Deferred taxes

89.321

83.002

8%

0

0%

Provision for contingencies

134.309

134.914

0%

126.841

6%

Obligation for investors

203.293

253.390

-20%

380.000

-47%

Other

534.615

574.083

-7%

243.885

119%

 

3.778.445

1.943.591

94 %

3.317.409

14%

Shareholders' Equity

 

 

 

 

 

Capital

2.734.157

2.734.157

0%

2.730.787

0%

Treasury shares

-1.731

-1.731

0%

-1.731

0%

Capital reserves

24.244

18.066

34%

256.645

-91%

Revenue reserves

-

-

 

589.726

100%

Retained earnings

-31.515

-102.019

-69%

-43.292

-27%

Acumulated losses

-102.019

0

 

0

 

Non controlling interests

105.359

98.621

7%

68.327

54%

 

2.728.495

2.747.094

-1%

3.600.462

-24%

Liabilities and Shareholders' Equity

9.367.678

9.506.624

-1%

9.093.244

3%

Note: ¹ Following the modification of certain debt covenants, per the agreement with debt holders,Gafisa’  short-term debt and long-term debt classification will be reclassified to the LongTerm in the 1Q12, in compliance with all debt covenants.

 

 

20

 

 
 

 

CASH FLOW

 

1Q12

1Q11

Income Before Taxes on Income

(4.705)

(55.310)

Expenses (income) not affecting working capital

   

Depreciation and amortization

18.333

12.365

Impairment allowance

(4.282)

-

Expense on stock option plan

6.513

3.363

Penalty fee over delayed projects

11.186

-

Unrealized interest and charges, net

29.466

55.662

Deferred Taxes

    

Disposal of fixed asset

5.622

  

Warranty provision

1.015

2.460

Provision for contingencies

8.592

8.484

Profit sharing provision

13.327

2.133

Allowance (reversal) for doubtful debts

(2.965)

6.385

Profit / Loss from financial instruments

(2.737)

-

Clients

89.693

82.390

Properties for sale

83.616

(298.871)

Other receivables

29.445

(4.219)

Deferred selling expenses and prepaid expenses

(1.180)

(7.892)

Obligations on land purchases and advances from customers

(161.830)

28.323

Taxes and contributions

28.100

(30.103)

Trade accounts payable

13.245

(12.018)

Salaries, payroll charges

373

10.611

Other accounts payable

(88.951)

56.370

Current account operations

(442)

(31.574)

Paid taxes

(13.819)

(9.262)

Cash used in operating activities

57.615

(180.703)

Investing activities

    

Purchase of property and equipment and deferred charges

(27.217)

(14.270)

Redemption of securities, restricted securities and loans

(3.043.733)

(888.203)

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

3.207.922

1.134.692

Cash used in investing activities

136.972

232.219

Financing activities

    

Capital increase

-

1.589

Contributions from venture partners

(108.912)

(18.969)

Increase in loans and financing

240.556

117.922

Repayment of loans and financing

(121.477)

(184.342)

Assignment of credit receivables, net

(85.411)

8.150

Proceeds from subscription of redeemable equity interest in securitization fund

15.743

(2.872)

Operations of mutual

(7.422)

(676)

Net cash provided by financing activities

(66.923)

(79.198)

Net increase (decrease) in cash and cash equivalents

127.665

(27.682)

Cash and cash equivalents

    

At the beggining of the period

137.600

256.382

At the end of the period

265.265

228.700

Net increase (decrease) in cash and cash equivalents

127.665

(27.682)

 

 

21

 

 
 

 
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.

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, brers, 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).

Investor Relations 

Media Relations (Brazil) 

Luciana Doria Wilson 

Débora Mari 

Website: www.gafisa.com.br/ir 

Máquina da Notícia Comunicação Integrada 

Phone: +55 11 3025-9297 / 9242 / 9305 

Phone: +55 11 3147-7412 

Fax: +55 11 3025-9348 

Fax: +55 11 3147-7900 

Email: ri@gafisa.com.br 

E-mail: debora.mari@maquina.inf.br 

 

This release contains forward-loing 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-loing 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 fou rth 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.

 
 

 

 

22

 

 

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 09, 2012
 
Gafisa S.A.
 
By:
/s/ Alceu Duílio Calciolari
 
Name:   Alceu Duílio Calciolari
Title:     Chief Executive Officer and Investor Relations Officer