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FOR IMMEDIATE RELEASE - São Paulo, August 9, 2018 – Gafisa S.A. (B3: GFSA3; NYSE: GFA), one of Brazil’s leading homebuilders, today reported its financial results for the second quarter ended June 30, 2018.
GAFISA ANNOUNCES
2Q18 RESULTS
|
Conference Call ► 9:30 a.m. Brasília time ► 8:30 a.m. US EST Webcast: www.gafisa.com.br/ri Replay: Shares GFSA3 – B3 (formerly BM&FBovespa)
|
The second quarter of 2018 reaffirmed Gafisa’s positive financial and operational progress, further reinforcing our view that we reached a pivotal inflection point over the course of previous quarters. We launched three successful projects in the quarter, two of them in the city of São Paulo/SP and one in the metropolitan region of Greater São Paulo. These projects’ PSV totaled R$400 million with an SoS of 52.5%. This result is a reflexion of the Management’s commitment to efficiently execute its launches, the effect of which can be clearly seen in recent results. The sales performance of these launched projects, coupled with inventory sales, positively impacted gross sales in the quarter, which totaled R$405.8 million, up 38.3% and 68.5% versus 1Q18 and 2Q17, respectively. Cancellations totaled R$59.9 million in 2Q18, a sharp drop of 47.3% year-over-year and 3.8% less quarter-over-quarter, marking a new low for cancellations, as reiterated by Management. The sales mix and the positive trend in cancellations resulted in net presales of R$345.9 million, an increase of 46.7% and 172.1% versus 1Q18 and 2Q17, respectively. In 1H18, net presales totaled R$581.7 million, 137.9% higher than in 1H17. The efficiency of digital tools to leverage our sales channels with our clients was also a highlight: in 1H18, nearly 30% of total sales derived from these online tools. Regarding financial performance, net revenue grew in all bases of comparison, driven by higher inventory sales and the Upside Pinheiros project (launched in 1Q18) contributing R$68 million to revenues. Project sales with better margins bolstered adjusted gross profit in the first half of 2018, a four-fold increase against the same period last year. As a result, adjusted gross margin reached 31.7% in 1H18, confirming the impact of higher revenue recognition share from more recent projects, the effect of which we had already indicated. The successful launch of new projects can be seen in the Backlog Results (REF), which reached a balance of R$262.8 million in 1H18, or a 63% increase against the same period last year. This performance resulted in gross margin of 37.5%, signaling a favorable outlook for revenue and margin over upcoming quarters, especially due to a higher share of revenue recognition from more recent projects in future results. General and administrative expenses totaled R$39.5 million in 1H18, 16.1% lower than in 1H17. This downward trend affirms the Company’s ongoing diligence in finding opportunities to maximize the efficiency of its processes. In 2Q18, selling expenses were 15.8% and 32.7% higher than in 1Q18 and 2Q17, respectively, due to a set of initiatives necessary to ensure good launches in the period. It is worth mentioning that these increases came in lower than the rate of higher gross sales in the period. |
1
The gradual recovery of Gafisa’s financial performance is also signaled by its adjusted EBITDA, which reached R$29.2 million in 2Q18, sustaining the upward trend seen in the first quarter of 2018, boosted by revenue recognition of projects with higher margins.
The improved cash position positively impacted 1H18’s net financial result of negative R$39.0 million, a reduction of 37.0% against the same period last year, also driven by lower indebtedness. 1H18 net financial loss totaled a negative R$85.3 million, a 62.8% evolution vs. 1H17.
Another highlight in 1H18 was the reduction of Gafisa’s net debt. In 1H18, net debt reached R$751.9 million, 32.4% lower than the R$1.1 billion recorded in 1H17. Therefore, the Company’s leverage, measured by net debt to shareholders' equity ratio, was 82.8% in the period, a sharp drop compared to the 126.1% recorded at the end of 2017, mainly due to capital increase and renegotiations in 1Q18, which both reduced debt and increased cash position in the period.
Finally, deliveries in the quarter positively impacted cash generation in the quarter, which totaled R$26.7 million. Cash generation was negative R$45.2 million in 1H18, reflecting the negative cash generation of the previous quarter.
Thus, the good launch performances, inventory deliveries with better margins, ongoing pursuit of increased operational and administrative efficiency and new levels in the areas of cancellations and net debt indicate that this positive trend should continue. Despite economic and political uncertainties that still impact our business environment and the country as a whole, we remain focused on sustaining our current trend of improved results over upcoming periods.
Sandro Gamba
CEO
2
MAIN CONSOLIDATED INDICATORS
Table 1 - Operational Performance (R$ 000)
|
2Q18 |
1Q18 |
Q/Q (%) |
2Q17 |
Y/Y (%) |
1H18 |
1H17 |
Y/Y (%) | |
|
Launches |
399,875 |
138,715 |
188.3% |
- |
- |
538,590 |
- |
- |
|
Gross Sales |
405,858 |
293,460 |
38.3% |
240,795 |
68.5% |
699,318 |
476,406 |
46.8% |
|
Cancellations |
(59,912) |
(57,702) |
3.8% |
(113,648) |
-47.3% |
(117,614) |
(231,862) |
-49.3% |
|
Pre-Sales |
345,946 |
235,757 |
46.7% |
127,146 |
172.1% |
581,704 |
244,544 |
137.9% |
|
Net Sales over Supply (SoS) |
19.9% |
14.4% |
5.2 bps |
7.9% |
11.9 bps |
17.2% |
14.2% |
0.2 bps |
|
Delivery PSV |
300,991 |
- |
- |
479,869 |
-37.3% |
300,991 |
744,747 |
-59.6% |
|
Inventories |
1,395,626 |
1,396,706 |
-0.1% |
1,476,281 |
-5.5% |
1,395,626 |
1,476,281 |
-5.5% |
Table 2 – Financial Performance (R$ 000)
|
2Q18 |
1Q18 |
Q/Q (%) |
2Q17 |
Y/Y (%) |
1H18 |
1H17 |
Y/Y (%) | |
|
Net Revenue |
302,271 |
213,397 |
41.6% |
147,253 |
105.3% |
515,668 |
283,792 |
81.7% |
|
Adjusted Gross Profit |
104,366 |
59,134 |
76.5% |
12,421 |
740.2% |
163,500 |
33,230 |
392.0% |
|
Adjusted Gross Margin 1 |
34.5% |
27.7% |
680 bps |
8.4% |
2610 bps |
31.7% |
11.7% |
2000 bps |
|
Adjusted EBITDA |
29,164 |
3,245 |
798.7% |
(65,054) |
-144.8% |
32,408 |
(112,380) |
-128.8% |
|
Adjusted EBITDA Margin² |
9.6% |
1.5% |
810 bps |
-44.2% |
5380 bps |
6.3% |
-39.6% |
4590 bps |
|
Net Income |
(29,359) |
(55,924) |
-47.5% |
(170,459) |
-82.8% |
(85,284) |
(327,576) |
-74.0% |
|
Backlog Revenues |
701,634 |
625,251 |
12.2% |
450,923 |
55.6% |
701,634 |
450,923 |
55.6% |
|
Backlog Results ³ |
262,828 |
231,253 |
13.7% |
161,291 |
63.0% |
262,828 |
161,291 |
63.0% |
|
Backlog Results Margin ³ 5 |
37.5% |
37.0% |
50 bps |
35.8% |
170 bps |
37.5% |
35.8% |
170 bps |
|
Net Debt |
751,873 |
778,530 |
-3.4% |
1,112,403 |
-32.4% |
751,873 |
1,112,403 |
-32.4% |
|
Cash and Cash Equivalents 4 |
212,897 |
204,938 |
3.9% |
214,573 |
-0.8% |
212,897 |
214,573 |
-0.8% |
|
Equity + Minority Shareholders |
908,570 |
936,904 |
-3.0% |
1,378,424 |
-34.1% |
908,570 |
1,378,424 |
-34.1% |
|
(Net Debt – Proj. Fin.) / (Equity + Minorit.) |
17.3% |
9.8% |
750 bps |
7.2% |
1010 bps |
17.3% |
7.2% |
1010 bps |
¹ Adjusted by capitalized interests;
² Adjusted by stock option plan expenses (non-cash), minority shareholders;
³ Backlog results net of PIS/COFINS taxes (3.65%) and excluding the impact of PVA (Present Value Adjustment) method according to Law No. 11.638.
4 Cash and cash equivalents, and marketable securities.
5 Backlog results comprise the projects restricted by condition precedent
3
OPERATIONAL RESULTS
Table 3 - Operational Performance (R$ 000)
|
2Q18 |
1Q18 |
Q/Q (%) |
2Q17 |
Y/Y (%) |
1H18 |
1H17 |
Y/Y (%) | |
|
Launches |
399,875 |
138,715 |
188.3% |
- |
- |
538,590 |
- |
- |
|
Gross Sales |
405,858 |
293,460 |
38.3% |
240,795 |
68.5% |
699,318 |
476,406 |
46.7% |
|
Cancellations |
(59,912) |
(57,702) |
3.8% |
(113,648) |
-47.3% |
(117,614) |
(231,862) |
-49.3% |
|
Pre-Sales |
345,946 |
235,757 |
46.7% |
127,146 |
172.1% |
581,704 |
244,544 |
137.9% |
|
Sales over Subpsly (SoS) |
19.9% |
14.4% |
5.5 bps |
12.9% |
12.0 bps |
17.2% |
14.2% |
3.0 bps |
|
Delivery PSV |
300,991 |
- |
- |
479,869 |
-37.3% |
300,991 |
744,747 |
-59.6% |
Launches
In 2Q18 Gafisa launched three projects with total PSV of R$399.9 million, all in Greater São Paulo. Added to the R$138.7 million in 1Q18, launches totaled R$538.6 million in 1H18. It is worth highlighting that the launch volume in 1H18 has already nearly reached the total volume of 2017 (R$539 million in 1H18 vs. R$554 million in 2017).
Sales over supply (SoS) of these projects stood at 19.9%, validating Gafisa’s efficient execution of launches and continued inventory sales.
*It considers 1H18
Table 4 - Launches (R$ 000)
|
Project |
City |
Period |
PSV |
Segment |
|
Upside Pinheiros |
São Paulo/SP |
1Q18 |
138,715 |
High |
|
Upside Paraíso |
São Paulo/SP |
2Q18 |
146,949 |
High |
|
Belvedere Lorian |
Osasco/SP |
2Q18 |
165,130 |
High |
|
MOOV Belém |
São Paulo/SP |
2Q18 |
86,797 |
Medium |
|
TOTAL |
|
|
538,591 |
|
4
Sales
In 2Q18, gross sales totaled R$405.9 million, 38.3% and 68.5% higher than in 1Q18 and 2Q17, respectively, mainly driven by successful launches in the quarter, corresponding to 57.8% of volume sold. Gross sales reached R$699.3 million in 1H18, up 46.7% vs. 1H17.
Cancellations totaled R$59.9 million in 2Q18, a 3.8% drop from 1Q18, and a sharp drop of 47.3% compared to 2Q17, marking a new low for cancellations for the year. The first half of the year also reflects a clear year-over-year inflection point for cancellations, with a 49.3% reduction vs. 1H17.
The gross sales result and cancellations remaining close to the same level as the previous quarter contributed to a net presales increase of 46.7% and 172.1%, quarter-over-quarter and year-over-year, respectively, to R$345.9 million in 2Q18. Such comparison is equally positive in the 1H18 year-over-year analysis: net presales totaled R$581.7 million in 1H18, up 137.9% vs 1H17.
Internet sales were especially strong in the period, having an important influence over clients who search for real estate properties online. These online tools contributed to around 30% of total sales in the first semester of the year, or R$229 million in sales in 1H18.
5
Sales Over Supply (SoS)
Positive launch performance boosted quarterly SoS, which increased from 14.4% in 1Q18 to 19.9% in 2Q18. SoS in 1H18 climbed from 37.5% in 1Q18 to 43.1% in 2Q18, atesting the efficiency of Gafisa’s continued and efficient business strategy.
Inventory (Property for Sale)
Inventory at market value reached R$1,395.6 million in 2Q18, in line with the previous quarter. Year-over-year, inventory fell 5.5% as the company focused on sales and reduced the number of launches in the period. The project inventory located outside of strategic markets of R$55.1 million, accounts for 3.9% of the total inventory, of which 59.9% are finished units.
Table 5 – Inventory at Market Value 2Q18 x 1Q18 (R$ 000)
|
|
Inventories EoP 1Q18 |
Launches |
Cancellations |
Gross Sales |
Adjustements¹ |
Inventories EoP 2Q18 |
Q/Q(%) |
|
São Paulo |
1,105,642 |
399,875 |
43,497 |
(371,940) |
(28,315) |
1,148,760 |
3.9% |
|
Rio de Janeiro |
232,040 |
- |
13,925 |
(29,646) |
(24,522) |
191,798 |
-17.3% |
|
Other Markets |
59,023 |
- |
2,490 |
(4,273) |
(2,173) |
55,068 |
-6.7% |
|
Total |
1,396,706 |
399,875 |
59,912 |
(405,858) |
(55,009) |
1,395,626 |
-0.1% |
¹ Adjustments reflect the updates related to the project scope, launch date and pricing update in the period.
Gafisa continues to focus on gradually reducing inventories, seeking to maintain a balance between sales of more recent projects and of finished units. This strategy can be seen when we analyze Gafisa’s inventory turnover for the last 12 months ended in 2Q18, which evidences a reduction in the number of months for theoretical inventory liquidation.
6
Table 6 – Inventory at Market Value – Financial Progress – POC - (R$ 000)
|
|
Not Iniated |
Up to 30% built |
30% to 70% built |
More than 70% built |
Finished Units |
Total 2Q18 |
|
São Paulo |
257,857 |
92,380 |
358,172 |
160,114 |
280,237 |
1,148,760 |
|
Rio de Janeiro |
- |
- |
- |
5,194 |
186,604 |
191,798 |
|
Other Markets |
- |
- |
22,094 |
- |
32,974 |
55,068 |
|
Total |
257,857 |
92,380 |
380,266 |
165,308 |
499,815 |
1,395,626 |
Delivered Projects and Transfer
In 2Q18, 5 projects were delivered with total PSV of R$301.0 million. On June 30, 2018, Gafisa managed the construction of 21 projects, all of which are on schedule according to the Company’s business plan.
Over the past few years, the Company has been taking steps to improve the receivables/transfer process, aiming to maximize the return rates on capital employed. Currently, the Company’s directive is to conclude the transfer process of 90% of eligible units within 90 days after the delivery of the project.
Therefore, PSV transferred in 2Q18 jumped 138.2% to R$140.5 million quarter-over-quarter, driven by a higher volume of projects delivered, and was down 41.6% year-over-year, due to the higher volume of deliveries in 2Q17. In 1H18, PSV transferred totaled R$199.5 million, 41.8% lower than in 1H17, also due to a lower volume of deliveries in the period.
Table 7 – Transfer
|
|
2Q18 |
1Q18 |
Q/Q (%) |
2Q17 |
Y/Y (%) |
1H18 |
1H17 |
Y/Y (%) |
|
PSV Transferred ¹ |
140,505 |
58,998 |
138.2% |
240,783 |
-41.6% |
199,503 |
342,527 |
-41.8% |
|
Deleverd Projects |
5 |
- |
- |
4 |
25.0% |
5 |
7 |
-28.6% |
|
Delivery Units |
1,025 |
- |
- |
1,389 |
-26.2% |
1,025 |
1,999 |
-48.7% |
|
Deliverd PSV ² |
300,991 |
- |
- |
479,869 |
-37.3% |
300,991 |
744,927 |
-59.6% |
¹ PSV transfers refers to the potential sales value of the units transferred to financial institutions;
² PSV = Potential sales value of delivered units.
Landbank
The Company’s landbank, with an estimated PSV of R$3.7 billion, represents 32 potential projects/phases or nearly 8,000 units. Approximately 57.3% of land was acquired through swaps. In 2Q18, the Company acquired three new land areas in São Paulo, with potential PSV of R$326.2 million. The acquisition of these land areas was made with a combination of a physical swap of 39% and cash payment.
Table 8 - Landbank (R$ 000)
|
|
PSV |
% Swap Total |
% Swap Units |
% Swap Financial |
Potencial Units |
Potencial |
|
São Paulo |
2,386,018 |
52.7% |
45.0% |
7.7% |
5,338 |
6,004 |
|
Rio de Janeiro |
1,353,466 |
63.2% |
63.2% |
0.0% |
1,956 |
1,956 |
|
Total |
3,739,484 |
57.3% |
53.1% |
4.3% |
7,294 |
7,960 |
¹ The swap percentage is measured compared to the historical cost of land acquisition.
² Potential units are net of swaps and refer to the Gafisa’s and/or its partners’ participation in the project.
7
Table 9 – Changes in the Landbank (2Q18 x 1Q18 - R$ 000)
|
|
Initial Landbank |
Land Acquisition |
Launches |
Cancellations |
Adjustments |
Final Landbank |
|
São Paulo |
2,466,636 |
326,176 |
399,875 |
- |
(6,919) |
2,386,018 |
|
Rio de Janeiro |
1,420,604 |
- |
- |
67,333 |
195 |
1,353,466 |
|
Total |
3,887,240 |
326,176 |
399,875 |
67,333 |
(6,723) |
3,739,485 |
8
FINANCIAL RESULTS
Revenue
Net revenues increased to R$302.3 million in 2Q18, up 105.3% compared to 2Q17, mainly reflecting the revenue growth of projects launched from 2014 to 2016, which moved closer to completed construction, thereby increasing their share of revenue contribution, besides a higher volume of projects launched in 2017. The project launched in 1Q18, Upside Pinheiros, drove revenue increase in the quarter by R$68.2 million.
Table 10 – Revenue Recognition (R$ 000)
|
|
2Q18 |
2Q17 | ||||||
|
Launches |
Pre-Sales |
% |
Revenue |
% Revenue |
Pre-Sales |
% |
Revenue |
% Revenue |
|
2018 |
232,403 |
67.2% |
68,242 |
22.6% |
- |
0.0% |
- |
0.0% |
|
2017 |
20,777 |
6.0% |
9,918 |
3.3% |
- |
0.0% |
- |
0.0% |
|
2016 |
24,171 |
7.0% |
25,034 |
8.3% |
14,999 |
11.8% |
18,546 |
12.6% |
|
2015 |
33,323 |
9.6% |
148,275 |
49.1% |
41,331 |
32.5% |
57,085 |
38.8% |
|
<2014 |
35,271 |
10.2% |
50,801 |
16.8% |
70,817 |
55.7% |
71,623 |
48.6% |
|
Total |
345,946 |
100% |
302,270 |
100.0% |
127,146 |
100% |
147,254 |
100.0% |
|
SP + RJ |
344,163 |
99.5% |
276,766 |
91.6% |
121,653 |
95.7% |
146,430 |
99.4% |
|
Other Markets |
1,783 |
0.5% |
25,504 |
8.4% |
5,494 |
4.3% |
824 |
0.6% |
Gross Profit & Margin
Gafisa’s adjusted gross profit totaled R$104.4 million in 2Q18, substantial growth compared to 1Q18 (+76.5%) and 2Q17 (+740.2%), boosted by sales of projects with better margins. Positive sales performance also drove adjusted gross profit growth in 1H18, which totaled R$163.5 million, 392.0% higher than in 1H17. It is worth mentioning the gradual inversion of the Company’s financial performance curve, signaled by higher net revenue versus 1Q18 (+41.6%), and 2Q17 (+105.3%) and in 1H18 (+81.7%).
Adjusted gross margin in 2Q18 was 34.5%, 680 bps higher than 1Q18 and 2,610 bps vs. 2Q17. In 1H18, gross margin totaled 31.7%, 2,000 bps higher than in 1H17.
Table 11 – Gross Margin (R$ 000)
|
|
2Q18 |
1Q18 |
Q/Q(%) |
2Q17 |
Y/Y (%) |
1H18 |
1H17 |
Y/Y (%) |
|
Net Revenue |
302,271 |
213,397 |
41.6% |
147,254 |
105.3% |
515,668 |
283,792 |
81.7% |
|
Gross Profit |
72,824 |
22,862 |
218.5% |
(14,403) |
-605.6% |
95,686 |
(31,570) |
-403.1% |
|
Gross Margin |
24.1% |
10.7% |
1340 bps |
-9.8% |
3390 bps |
18.6% |
-11.1% |
2970 bps |
|
(-) Financial Costs |
31,542 |
36,272 |
-13.0% |
26,824 |
17.6% |
67,814 |
64,800 |
4.7% |
|
Adjusted Gross Profit 1 |
104,366 |
59,134 |
76.5% |
12,421 |
740.2% |
163,500 |
33,230 |
392.0% |
|
Adjusted Gross Margin 1 |
34.5% |
27.7% |
680 bps |
8.4% |
2610 bps |
31.7% |
11.7% |
2000 bps |
¹ Adjusted by capitalized interests.
9
Selling, General and Administrative Expenses (SG&A)
General and administrative expenses totaled R$39.5 million in 1H18, 16.1% lower than in 1H17. This decrease reflects the Company’s diligence in its continued efforts to cut costs.
In 1H18, selling expenses totaled R$52.4 million, 30.2% higher than in 1H17. This increase reflects the initiatives which resulted in successful launches in the period, reminding that no launch took place in 1H17. At the same way, quarter-over-year, expenses came to R$28.1 million, 15.8% higher than in 1Q18. It is worth mentioning that these rates were lower than higher gross sales rates during the same periods, i.e., up 38.3% and 68.5% in 2Q18 and 1H18, respectively.
Thus, selling, general and administrative expenses came to R$49.0 million in 2Q18, 13.9% and 19.6% higher than in 1Q18 and 2Q17, respectively. In 1H18, expenses totaled R$91.9 million, 5.2% higher than in 1H17.
Table 12 – SG&A Expenses (R$ 000)
|
|
2T18 |
1Q18 |
Q/Q(%) |
2Q17 |
Y/Y (%) |
1H18 |
1H17 |
Y/Y (%) |
|
Selling Expenses |
(28,110) |
(24,279) |
15.8% |
(21,184) |
32.7% |
(52,389) |
(40,240) |
30.2% |
|
G&A Expenses |
(20,845) |
(18,696) |
11.5% |
(19,738) |
5.6% |
(39,541) |
(47,107) |
-16.1% |
|
Total SG&A Expenses |
(48,955) |
(42,975) |
13.9% |
(40,922) |
19.6% |
(91,930) |
(87,347) |
5.2% |
In 1H18, other operating revenues/expenses totaled R$29.9 million, 41.6% lower than in 1H17. In 2Q18, other operating revenues/expenses totaled R$17.7 million, up 45.2% from 1Q18, and down 43.9% from 2Q17, driven by litigation expenses. The table below breaks down these expenses.
Table 13 – Other Operating Revenues/Expenses (R$ 000)
|
|
2Q18 |
1Q18 |
Q/Q(%) |
2Q17 |
Y/Y (%) |
1H18 |
1H17 |
Y/Y (%) |
|
Litigation Expenses |
(15,747) |
(11,776) |
33.7% |
(30,041) |
-47.6% |
(27,523) |
(46,777) |
-41.2% |
|
Others |
(1,972) |
(429) |
359.7% |
(1,528) |
29.1% |
(2,401) |
(4,494) |
-46.6% |
|
Total |
(17,719) |
(12,205) |
45.2% |
(31,569) |
-43.9% |
(29,924) |
(51,271) |
-41.6% |
10
Adjusted EBITDA
Adjusted EBITDA totaled R$29.2 million in 2Q18, in line with the positive trend seen in the first quarter of the year. This result reflects on the improved margins already explained.
Table 14 – Adjusted EBITDA (R$ 000)
|
|
2Q18 |
1Q18 |
Q/Q(%) |
2Q17 |
Y/Y (%) |
1H18 |
1H17 |
Y/Y (%) |
|
Net Income |
(29,359) |
(55,924) |
-47.5% |
(180,004) |
-83.7% |
(85,284) |
(229,401) |
-62.8% |
|
Discontinued Operation Result 1 |
- |
- |
- |
(9,545) |
-100.0% |
- |
98,175 |
-100.0% |
|
Adjusted Net Income1 |
(29,359) |
(55,924) |
-47.5% |
(170,459) |
-82.8% |
(85,284) |
(327,576) |
-74.0% |
|
(+) Financial Results |
19,082 |
19,950 |
-4.4% |
33,390 |
-42.9% |
39,032 |
61,950 |
-37.0% |
|
(+) Income Taxes |
1,432 |
232 |
517.2% |
949 |
50.9% |
1,664 |
2,295 |
-27.5% |
|
(+) Depreciation and Amortization |
5,140 |
3,985 |
29.0% |
8,875 |
-42.1% |
9,125 |
17,583 |
-48.1% |
|
(+) Capitalized Interest |
31,542 |
36,272 |
-13.0% |
26,824 |
17.6% |
67,814 |
64,800 |
4.7% |
|
(+) Expenses w Stock Option Plan |
1,369 |
(91) |
-1604.3% |
(424) |
-422.9% |
1,278 |
1,703 |
-25.0% |
|
(+) Minority Shareholders |
(42) |
(1,179) |
-96.4% |
(100) |
-58.0% |
(1,221) |
(50) |
2342.0% |
|
(+) AUSA Income Effect Adjusted |
- |
- |
- |
35,891 |
-100.0% |
- |
66,915 |
-100.0% |
|
Adjusted EBITDA1 |
29,164 |
3,245 |
798.7% |
(65,054) |
-144.8% |
32,408 |
(112,380) |
-128.8% |
¹ Sale of Tenda shares.
Financial Result
In 2Q18, financial result totaled R$3.7 million, 30.1% lower than in 1Q18 and 59.4% lower than in 2Q17. In 1H18, financial results of R$9.1 million came 46.8% lower than the same period last year. These decreases mainly reflect the interest rate drop incurred on cash and cash equivalents in the period.
Financial expenses totaled R$22.8 million in 2Q18, 9.8% and 46.4% lower than in 1Q18 and 2Q17. In 1H18, financial expenses came to R$48.1 million, down 39.1% from 1H17, mainly due to the capital increase in 1H18 and debt reduction.
Therefore, net financial result was negative R$39.0 million in 1H18, a reduction of 37.0% versus 1H17, an effect of the higher cash position.
Net Income
In 2Q18, the Company posted a net loss of R$29.4 million, compared to a net loss of R$55.9 million in 1Q18 and R$170.6 million in 2Q17. In 1H18, net loss totaled R$85.3 million, down 74.0% versus 1H17.
Table 15 – Net Income (R$ 000)
|
|
2Q18 |
1Q18 |
Q/Q(%) |
2Q17 |
Y/Y (%) |
1H18 |
1H17 |
Y/Y (%) |
|
Net Revenue |
302,271 |
213,397 |
41.6% |
147,253 |
105.3% |
515,668 |
283,792 |
81.7% |
|
Gross Profit |
72,824 |
22,862 |
218.5% |
(14,403) |
-605.6% |
95,686 |
(31,570) |
-403.1% |
|
Gross Margin |
24.1% |
10.7% |
1340 bps |
-9.8% |
3390 bps |
18.6% |
-11.1% |
2970 bps |
|
Adjusted Gross Profit ¹ |
104,366 |
59,134 |
76.5% |
12,421 |
740.2% |
163,500 |
33,230 |
392.0% |
|
Adjusted Gross Margin |
34.5% |
27.7% |
680 bps |
8.4% |
2610 bps |
31.7% |
11.7% |
2000 bps |
|
Adjusted EBITDA ² |
29,164 |
3,245 |
798.7% |
(65,054) |
-144.8% |
32,408 |
(112,380) |
-128.8% |
|
Adjusted EBITDA Margin |
9.6% |
1.5% |
810 bps |
-44.2% |
5380 bps |
6.3% |
-39.6% |
4590 bps |
|
Income from Discontinued Operations ³ |
- |
- |
- |
(9,545) |
-100.0% |
- |
98,175 |
-100.0% |
|
Adjusted Net Income 4 |
(29,359) |
(55,924) |
-47.5% |
(170,459) |
-82.8% |
(85,284) |
(327,576) |
-74.0% |
|
( - ) Equity income from Alphaville |
- |
- |
- |
(35,891) |
-100.0% |
- |
(66,915) |
-100.0% |
|
Adjusted Net Income (ex-AUSA) |
(29,359) |
(55,924) |
-47.5% |
(134,568) |
-78.2% |
(85,284) |
(260,661) |
-67.3% |
¹ Adjusted by capitalized interests;
² Adjusted by note 1, by expense with stock option plan (non-cash) and minority shareholders. EBITDA does not consider Alphaville's equity income;
³ Sale of Tenda shares;
4 Adjusted by item 3.
11
Backlog of Revenues and Results
The backlog of results to be recognized under the PoC method totaled R$262.8 million in 2Q18, with margin to be recognized of 37.5%, up 50 bps from 1Q18 and 170 bps higher than in 2Q17. The backlog performance is a reflexion of the effective execution of launches in the period, signaling a positive outlook for revenue volume and backlog results over coming quarters.
Table 16 – Backlog Results (REF) (R$ 000)
|
|
2Q18 |
1Q18 |
Q/Q(%) |
2Q17 |
Y/Y(%) |
|
Backlog Revenues |
701,634 |
625,251 |
12.2% |
450,923 |
55.6% |
|
Backlog Costs (units sold) |
(438,806) |
(393,999) |
11.4% |
(289,632) |
51.5% |
|
Backlog Results |
262,828 |
231,253 |
13.7% |
161,291 |
63.0% |
|
Backlog Margin |
37.5% |
37.0% |
50 bps |
35.8% |
170 bps |
Note: Backlog results net of PIS/COFINS taxes (3.65%) and excluding the impact of PVA (Present Value Adjustment) method according to Law No. 11.638.
Backlog results comprise the projects restricted by condition precedent.
12
BALANCE SHEET
Cash and Cash equivalents and Marketable Securities
On June 30, 2018, cash and cash equivalents and marketable securities totaled R$212.9 million, 3.9% higher than on March 31, 2018.
Receivables
At the end of 2Q18, total accounts receivables totaled R$1.5 billion, a 10.5% increase compared to 1Q18. It is worth mentioning that out of this total, R$367.3 million or 49% are expected to be received this year.
Table 17 – Total Receivables (R$ 000)
|
|
2Q18 |
1Q18 |
Q/Q (%) |
2Q17 |
Y/Y (%) |
|
Receivables from developments (off balance sheet) |
728,214 |
648,938 |
12.2% |
468,005 |
55.6% |
|
Receivables from PoC- ST (on balance sheet) |
562,072 |
508,421 |
10.6% |
602,295 |
-6.7% |
|
Receivables from PoC- LT (on balance sheet) |
195,199 |
186,897 |
4.4% |
208,230 |
-6.3% |
|
Total |
1,485,485 |
1,344,256 |
10.5% |
1,278,530 |
16.2% |
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 BRGAAP.
Table 18 – Receivables Schedule (R$ 000)
|
|
Total |
2018 |
2019 |
2020 |
2021 |
2022 – and after |
|
Receivables from PoC |
757,271 |
367,304 |
238,097 |
92,724 |
54,179 |
4,967 |
Cash Generation
Operating cash generation was R$26.7 million in 2Q18, due to the higher volume of projects delivered in the quarter and the positive performance of launches. In 1H18, operating cash generation was negative R$45.2 million, mainly impacted by a negative result in the previous quarter.
Table 19 –Cash Generation (R$ 000)
|
|
1Q18 |
2Q18 |
|
Availabilities 1 |
204,938 |
212,897 |
|
Change in Availabilities (1) |
57,476 |
7,959 |
|
Total Debt + Investor Obligations |
983,468 |
964,770 |
|
Change in Total Debt + Investor Obligations (2) |
-121,430 |
-18,698 |
|
Capital Increase (3) |
250,766 |
- |
|
Cash Generation in the period (1) - (2) - (3) |
-71,860 |
26,657 |
|
Final Accumulated Cash Generation |
-71,860 |
-45,203 |
¹ Cash and cash equivalents. and marketable securities.
13
Liquidity
In 2Q18, gross debt reached R$964.8 million, down 1.9% vs. 1Q18 and 27.3% vs 2Q17. Net debt totaled R$751.9 million, down 3.4% and 32.4% vs. 1Q18 and 2Q17, respectively.
The Company’s Net Debt/Shareholders’ Equity ratio at the end of 2Q18 was 82.8%, compared to 83.1% in 1Q18, and much lower compared to the 126.1% recorded in 2Q17, mainly due to the Company’s capital increase and renegotiations made in 1Q18, which reduced debt and increased the cash position in the period.
Table 20 – Debt and Investor Obligations (R$ 000)
|
|
2Q18 |
1Q18 |
Q/Q (%) |
2Q17 |
Y/Y (%) |
|
Debentures - FGTS (A) |
- |
- |
0.0% |
150,890 |
-100.0% |
|
Debentures – Working Capital (B) |
223,663 |
168,041 |
33.1% |
130,817 |
71.0% |
|
Project Financing SFH – (C) |
594,917 |
686,728 |
-13.4% |
861,930 |
-31.0% |
|
Working Capital (D) |
146,190 |
128,699 |
13.6% |
183,339 |
-20.3% |
|
Total (A)+(B)+(C)+(D) = (E) |
964,770 |
983,468 |
-1.9% |
1,326,976 |
-27.3% |
|
Total Debt (G) |
964,770 |
983,468 |
-1.9% |
1,326,976 |
-27.3% |
|
Cash and Availabilities¹ (H) |
212,897 |
204,938 |
3.9% |
214,573 |
-0.8% |
|
Net Debt (G)-(H) = (I) |
751,873 |
778,530 |
-3.4% |
1,112,403 |
-32.4% |
|
Equity + Minority Shareholders (J) |
908,570 |
936,904 |
-3.0% |
1,378,424 |
-34.1% |
|
(Net Debt) / (PL) (I)/(J) = (K) |
82.8% |
83.1% |
-30 bps |
80.7% |
210 bps |
|
(Net Debt – Proj, Fin,) / Equity (I)- ((A)+(C))/(J) = (L) |
17,3% |
9.8% |
750 bps |
7.2% |
1010 bps |
¹ Cash and cash equivalents and marketable securities.
Out of total debt, 28.7%, or R$277.0 million, referred to total debt maturing in the short term, compared to 34.1% at the end of 1Q18. On June 30, 2018, the consolidated debt average cost stood at 11.55% p.a. The debt renegotiation and the capital increase allowed the Company to restructure its debt profile, resulting in gradual deleverage and a lower average rate, the benefits of which should be seen over the coming quarters.
Table 21 – Debt Maturity
|
(R$ mil) |
Custo médio (a.a.) |
Total |
Até Jun/19 |
Até Jun/20 |
Até Jun/21 |
Até Jun/22 | ||||
|
Debentures – Working Capital (A) |
CDI + 3% / IPCA + 8.37% / CDI + 5.25% / CDI + 3.75% |
223,663 |
21,875 |
156,852 |
44,936 |
|||||
|
Project Financing SFH (B) |
TR + 8.30% to 14.20% / 12.87% / 143% CDI |
594,917 |
185,286 |
253,631 |
147,301 |
8.699 | ||||
|
Working Capital (C) |
135% CDI / CDI + 2.5% / CDI + 3% / CDI + 4.25% |
146,190 |
69,858 |
21,215 |
55,174 |
(57) | ||||
|
Total Debt (A)+(B)+(C) = (D) |
964,770 |
277,019 |
431,698 |
247,411 |
8.642 | |||||
|
% of Total Maturity per period |
28.7% |
44.7% |
25,6% |
0.9% | ||||||
|
Project debt maturing as % of total debt (B)/ (D) |
66.9% |
58.8% |
59,5% |
100.7% | ||||||
|
Corporate debt maturing as % of total debt ((A)+(C))/ (D) |
33.1% |
41.2% |
40,5% |
-0.7% | ||||||
|
Ratio Corporate Debt / Mortgage |
38.3% / 61.7% |
|||||||||
The Company is committed to deleveraging, which can be seen in the gradual reduction of net debt.
14
SUBSEQUENT EVENTS
Extraordinary Shareholders’ Meeting Call Notice
On July 31. 2018, Gafisa received a correspondence from shareholder GWI Asset Management S.A. (GWI) requesting a call notice for an Extraordinary Shareholders’ Meeting (ESM) within eight days from that date to resolve on the removal of all members of the Board of Directors and the election of new members.
On August 2, the Company informed GWI that said Call Notice Request should be supplemented by additional material required by applicable law, including the names of candidates appointed or supported by GWI, so as to include them in the mandatory remote voting list. This information shall be released to the market until the date of publication of the first announcement of ESM call notice.
Both correspondences were filed at the Brazilian Securities and Exchange Commission (CVM) and released to the market on August 2 by means of a Material Fact, and on August 7, GWI replied to the Company.
The Board of Directors’ Meeting was called to be held on August 14th,2018, the agenda will be the call notice of Extraordinary General Meeting. Gafisa will keep the market informed on the development of this matter.
Rule Changes for Housing Loans
The Brazilian National Monetary Council (CMN) approved several changes in housing loan rules, including, but not limiting, the increase of value of properties which can be acquired by means of the Housing Financial System (SFH) and the Government Severance Indemnity Fund for Employees (FGTS) to R$1.5 million. These changes will take effect in January 2019 for a six-year duration.
The implementation of all these rules that unlock the business environment may benefit the real estate sector and contribute to a turnover effect on the market. However, it is worth mentioning that these rules will be gradually implemented and their effect will not be seen immediately. Despite the implementation schedule of these measures adopted by CMN, the ceiling increase, which will take place on the beginning of next year, may increase the liquidity of projects at this price level, as consumers will have access to additional housing financing instruments.
15
São Paulo, August 9, 2018.
Alphaville Urbanismo SA releases its results for the second quarter of 2018.
Financial Results
In 2Q18, net revenues were R$20 million and net loss was R$-198 million.
|
|
|
|
|
| ||
|
|
|
|
|
| ||
|
2Q18 |
1H18 |
2Q17 |
1H17 |
2Q18 vs. 2Q17 |
1H18 vs. 1H17 | |
|
Net revenues |
20 |
106 |
50 |
112 |
-60% |
-5% |
|
Net income |
-198 |
-290 |
-120 |
-223 |
n.a |
n.a |
|
|
|
|
|
|
|
|
For further information, please contact our Investor Relations team at ri@alphaville.com.br or +55 11 3038-7131.
16
Consolidated Income Statement
|
|
2Q18 |
1Q18 |
Q/Q (%) |
2Q17 |
Y/Y (%) |
1H18 |
1H17 |
Y/Y (%) |
|
Net Revenue |
302,271 |
213,397 |
41,6% |
147,253 |
105,3% |
515,668 |
283,792 |
81,7% |
|
Operating Costs |
(229,447) |
(190,535) |
20,4% |
(161,656) |
41,9% |
(419,982) |
(315,362) |
33,2% |
|
Gross Profit |
72,824 |
22,862 |
218,5% |
(14,403) |
-605,6% |
95,686 |
(31,570) |
-403,1% |
|
Gross Margin |
24,1% |
10,7% |
1338 bps |
-9,8% |
3387 bps |
18,6% |
-11,1% |
2968 bps |
|
Operating Expenses |
(81,711) |
(59,783) |
36,7% |
(121,817) |
-32,9% |
(141,495) |
(231,811) |
-39,0% |
|
Selling Expenses |
(28,110) |
(24,279) |
15,8% |
(21,184) |
32,7% |
(52,389) |
(40,240) |
30,2% |
|
General and Administrative Expenses |
(20,845) |
(18,696) |
11,5% |
(19,738) |
5,6% |
(39,541) |
(47,107) |
-16,1% |
|
Other Operating Revenue/Expenses |
(17,719) |
(12,205) |
45,2% |
(31,569) |
-43,9% |
(29,924) |
(51,271) |
-41,6% |
|
Depreciation and Amortization |
(5,140) |
(3,985) |
29,0% |
(8,875) |
-42,1% |
(9,125) |
(17,583) |
-48,1% |
|
Equity Income |
(9,897) |
(618) |
1501,5% |
(40,451) |
-75,5% |
(10,516) |
(75,610) |
-86,1% |
|
Operational Result |
(8,887) |
(36,921) |
-75,9% |
(136,220) |
-93,5% |
(45,809) |
(263,381) |
-82,6% |
|
Financial Income |
3,737 |
5,344 |
-30,1% |
9,206 |
-59,4% |
9,081 |
17,076 |
-46,8% |
|
Financial Expenses |
(22,819) |
(25,294) |
-9,8% |
(42,596) |
-46,4% |
(48,113) |
(79,026) |
-39,1% |
|
Income Tax and Social Contribution |
(27,969) |
(56,871) |
-50,8% |
(169,610) |
-83,5% |
(84,841) |
(325,331) |
-73,9% |
|
Net Income After Taxes on Income |
(1,432) |
(232) |
517,2% |
(949) |
50,9% |
(1,664) |
(2,295) |
-27,5% |
|
Continued Op, Net Income |
(29,401) |
(57,103) |
-48,5% |
(170,559) |
-82,8% |
(86,505) |
(327,626) |
-73,6% |
|
Discontinued Op, Net Income |
(29,401) |
(57,103) |
-48,5% |
(170,559) |
-82,8% |
(86,505) |
(327,626) |
-73,6% |
|
Minority Shareholders |
- |
- |
- |
(9,545) |
-100,0% |
- |
98,175 |
-100,0% |
|
Net Income |
(42) |
(1,179) |
-96,4% |
(100) |
-58,0% |
(1,221) |
(50) |
2342,0% |
|
Income Tax and Social Contribution |
(29,359) |
(55,924) |
-47,5% |
(180,004) |
-83,7% |
(85,284) |
(229,401) |
-62,8% |
17
Consolidated Balance Sheet
|
|
2Q18 |
1Q18 |
Q/Q(%) |
2Q17 |
Y/Y(%) |
|
Current Assets |
|
|
|
|
|
|
Cash and Cash equivalents |
14,161 |
23,654 |
-40,1% |
37,979 |
-62,7% |
|
Securities |
198,736 |
181,284 |
9,6% |
176,594 |
12,5% |
|
Receivables from clients |
562,072 |
508,421 |
10,6% |
602,295 |
-6,7% |
|
Properties for sale |
777,405 |
849,737 |
-8,5% |
996,928 |
-22,0% |
|
Other accounts receivable |
104,086 |
115,928 |
-10,2% |
105,812 |
-1,6% |
|
Prepaid expenses and other |
4,125 |
5,136 |
-19,7% |
5,903 |
-30,1% |
|
Land for sale |
34,212 |
65,798 |
-48,0% |
3,270 |
946,2% |
|
Long-term Assets for sale |
1,694,797 |
1,749,958 |
-3,2% |
1,928,781 |
-12,1% |
|
Subtotal |
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term Assets |
195,199 |
186,897 |
4,4% |
208,230 |
-6,3% |
|
Receivables from clients |
370,192 |
336,511 |
10,0% |
582,445 |
-36,4% |
|
Properties for sale |
114,656 |
91,568 |
25,2% |
194,880 |
-41,2% |
|
Other |
680,047 |
614,976 |
10,6% |
985,555 |
-31,0% |
|
Subtotal |
41,011 |
41,005 |
0,0% |
45,318 |
-9,5% |
|
Intangible. Property and Equipment |
466,987 |
479,445 |
-2,6% |
731,405 |
-36,2% |
|
Investments |
|
|
|
|
|
|
|
2,882,842 |
2,885,384 |
-0,1% |
3,691,059 |
-21,9% |
|
Total Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities |
255,144 |
324,376 |
-21,3% |
654,200 |
-61,0% |
|
Loans and financing |
21,875 |
11,408 |
91,8% |
174,242 |
-87,4% |
|
Debentures |
148,536 |
142,766 |
4,0% |
194,787 |
23,7% |
|
Obligations for purchase of land advances from customers |
94,632 |
99,165 |
-4,6% |
73,249 |
29,2% |
|
Material and service suppliers |
55,554 |
52,016 |
6,8% |
46,343 |
19,9% |
|
Taxes and contributions |
298,213 |
325,760 |
-8,5% |
337,235 |
-11,6% |
|
Other |
873,954 |
955,491 |
-9,0% |
1,480,056 |
-46,0% |
|
In Natura Dividends |
|
|
|
|
|
|
Liabilities on Assets from Discontinued Operations |
|
|
|
|
|
|
Subtotal |
485,963 |
491,051 |
-1,0% |
391,069 |
24,3% |
|
|
201,788 |
156,633 |
28,8% |
107,465 |
87,8% |
|
Long-term liabilities |
182,723 |
134,924 |
35,4% |
71,149 |
156,8% |
|
Loans and financings |
74,473 |
74,473 |
0,0% |
100,405 |
-25,8% |
|
Debentures |
90,516 |
78,293 |
15,6% |
81,515 |
11,0% |
|
Obligations for Purchase of Land and advances from customers |
64,855 |
57,615 |
12,6% |
80,976 |
-19,9% |
|
Deferred taxes |
1,100,318 |
992,989 |
10,8% |
832,579 |
32,2% |
|
Provision for Contingencies |
|
|
|
|
|
|
Other |
|
|
|
|
|
|
Subtotal |
905,948 |
934,236 |
-3,0% |
1,374,347 |
-34,1% |
|
|
2,622 |
2,668 |
-1,7% |
4,077 |
-35,7% |
|
Shareholders’ Equity |
908,570 |
936,904 |
-3,0% |
1,378,424 |
-34,1% |
|
Shareholders’ Equity |
2,882,842 |
2,885,384 |
-0,1% |
3,691,059 |
-21,9% |
18
Consolidated Cash Flow
|
|
2Q18 |
2Q17 |
1H18 |
1H17 |
|
Net Income (Loss) before taxes |
(27,970) |
(277,330) |
(84,841) |
(325,331) |
|
Expenses/revenues that does not impact working capital |
9,829 |
205,663 |
17,897 |
185,362 |
|
Depreciation and amortization |
5,140 |
8,875 |
9,125 |
17,583 |
|
Impairment |
(16,061) |
(4,097) |
(25,237) |
(11,141) |
|
Expense with stock option plan |
1,369 |
(425) |
1,278 |
1,703 |
|
Unrealized interest and fees. net |
3,563 |
16,974 |
7,344 |
42,735 |
|
Equity Income |
9,898 |
40,451 |
10,516 |
75,610 |
|
Provision for guarantee |
(2,459) |
(1,714) |
(3,293) |
(3,315) |
|
Provision for contingencies |
15,306 |
30,041 |
26,833 |
46,777 |
|
Profit Sharing provision |
1,273 |
4,120 |
2,504 |
8,357 |
|
Provision (reversal) for doubtful accounts |
(8,200) |
3,558 |
(11,153) |
7,699 |
|
Gain / Loss of financial instruments |
- |
160 |
(20) |
(646) |
|
Provision for impairment of discontinued operation |
- |
215,440 |
- |
- |
|
Stock sale update |
- |
(107,720) |
- |
- |
|
Clients |
(61,143) |
82,890 |
(92,202) |
158,442 |
|
Properties held for sale |
86,298 |
82,512 |
167,766 |
147,467 |
|
Other accounts receivable |
(7,118) |
(5,985) |
(11,626) |
401 |
|
Prepaid expenses and differed sales expenses |
1,011 |
936 |
1,410 |
(3,355) |
|
Obligations on land purchase and advances from clients |
53,569 |
(22,239) |
22,425 |
(29,761) |
|
Taxes and contributions |
3,538 |
(789) |
9,124 |
(5,499) |
|
Suppliers |
(3,450) |
9,455 |
(3,340) |
(419) |
|
Payroll. charges and provision for bonuses |
(129) |
1,517 |
365 |
1,814 |
|
Other liabilities |
(12,964) |
(19,945) |
(42,767) |
(28,974) |
|
Related party operations |
(3,188) |
(4,130) |
(8,457) |
(9,703) |
|
Taxes paid |
(1,432) |
(949) |
(1,664) |
(2,295) |
|
Cash provided by/used in operating activities /discontinued operation |
- |
18,504 |
- |
51,959 |
|
Net cash from operating activities |
36,851 |
70,110 |
(25,910) |
140,108 |
|
Investment Activities |
- |
- |
- |
- |
|
Purchase of fixed and intangible asset |
(5,146) |
(7,080) |
(9,514) |
(10,696) |
|
Capital contribution in subsidiaries |
(1,781) |
518 |
(2,280) |
441 |
|
Redemption of securities. collaterals and credits |
196,157 |
471,458 |
666,060 |
687,475 |
|
Securities application and restricted lending |
(213,609) |
(434,932) |
(745,861) |
(640,423) |
|
Cash provided by/used in investment activities / discontinued operation |
- |
99,707 |
- |
48,663 |
|
Net cash from investment activities |
- |
(9,545) |
- |
(9,545) |
|
Funding Activities |
- |
219,510 |
- |
219,510 |
|
Related party contributions |
(24,379) |
339,636 |
(91,595) |
295,425 |
|
Addition of loans and financing |
- |
- |
- |
- |
|
Amortization of loans and financing |
- |
(1,999) |
- |
(1,237) |
|
Assignment of credit receivables. net |
158,392 |
110,687 |
210,330 |
186,282 |
|
Related Parties Operations |
(180,653) |
(387,998) |
(357,802) |
(539,609) |
|
Sale of treasury shares |
- |
- |
- |
21,513 |
|
Cash provided by/used in financing activities/ discontinued operation |
296 |
1,933 |
(155) |
6,268 |
|
Capital Increase |
- |
7 |
- |
317 |
|
Subscription and integralization of ordinary shares |
- |
(10,601) |
- |
24,089 |
|
Net cash from financing activities |
- |
- |
167 |
- |
|
Net cash variation for sales operations |
- |
- |
250,599 |
- |
|
Increase (decrease) in cash and cash equivalents |
(21,965) |
(287,971) |
103,139 |
(302,377) |
|
Beginning of the period |
- |
(107,610) |
- |
(124,711) |
|
End of the Period |
(9,493) |
14,165 |
(14,366) |
8,445 |
|
Increase (decrease) in cash and cash equivalents |
23,654 |
23,814 |
28,527 |
29,534 |
|
Payroll. charges and provision for bonuses |
14,161 |
37,979 |
14,161 |
37,979 |
|
Other liabilities |
(9,493) |
14,165 |
(14,366) |
8,445 |
19
|
Gafisa is one Brazil’s leading residential and commercial properties development and construction companies. Founded over 60 years ago. the Company is dedicated to growth and innovation oriented to enhancing the well-being. comfort. and safety of an increasing number of households. More than 15 million square meters have been built. and approximately 1.100 projects delivered under the Gafisa brand - more than any other company in Brazil. Recognized as one of the foremost professionally managed homebuilders. Gafisa’s brand is also one of the most respected. signifying both quality and consistency. In addition to serving the upper-middle and upper class segments through the Gafisa brand. the Company also participates through its 30% interest in Alphaville. a leading urban developer in the national development and sale of residential lots. Gafisa S.A. is a Corporation traded on the Novo Mercado of the B3 – Brasil. Bolsa. Balcão (B3:GFSA3) and is the only Brazilian homebuilder listed on the New York Stock Exchange (NYSE:GFA) with an ADR Level III. which ensures best practices in terms of transparency and corporate governance.
This release contains forward-looking statements about the business prospects. estimates for operating and financial results and Gafisa’s growth prospects. 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. |
IR Contacts Media Relations
|
20
SIGNATURE
|
Gafisa S.A. | |
|
By: |
/s/ Sandro Gamba |
|
Name: Sandro Gamba
Title: Chief Executive Officer | |