SOURCE: CR2 Empreendimentos Imobiliarios SA

CR2 Empreendimentos Imobiliarios SA

August 17, 2009 13:45 ET

CR2 Announces 2Q09 Results

RIO DE JANEIRO, BRAZIL--(Marketwire - August 17, 2009) -

CR2 Empreendimentos Imobiliários S.A. (BOVESPA: CRDE3) announces its results for 2Q09:

--  Net income was R$3.6mm (vs R$1.3mm in Q109) and net revenue was R$72mm
    (vs R$52mm in 1Q09). EPS was R$0.08 in Q209 vs R$0.03 in Q109.
--  Total contracted sales reached R$47mm, with CR2's share at R$35mm in
    2Q09, +95% and +81% from 1Q09 respectively.
--  We remained focused on preserving the cash position in 2Q09, which
    stood at R$34 million (-R$5mm vs 1Q09). Disbursements from CAIXA and an
    improving credit market will enable us to launch new projects in 2S09.
--  Inventory at market value (CR2's share) was R$184mm in 2Q09 (-16%
    Q/Q), equal to 49% of shareholders' equity -- one of the lowest in the
    sector. Of this total, 62% are in units up to R$130.000 and 100% in units
    up to R$500.000, which are eligible to SFH financing.
--  SFH disbursements reached R$26mm in 2Q09, bringing the total on the
    balance sheet to R$95mm. We have secured R$237mm in SFH financing lines
    from Itaú, Santander and Bradesco for 7 projects.
--  Track record with CAIXA January-August/09: 709 units transferred and
    R$28mm in disbursements. In 1S09 we transferred 423 units and received
    R$18mm in disbursements. Since then, we established a record for
    transferring 209 units from a single project (Acqua Park) over a weekend.
    We have 6 projects financed by Crédito Associativo with total PSV of
--  Low leverage with R$9mm net cash (ex-SFH) provides opportunities to
    raise debt and fuel growth.
--  Revenue to be Recognized of R$253mm in 2Q09 and results to be
    recognized of R$77mm (30.3% margin). We expect to deliver 7 projects with
    total PSV of R$363mm in 2009 (%CR2 of R$254mm).
--  Land bank represents potential sales (PSV) of R$3.3 billion, of which
    CR2's share was R$3.0 billion. Construction potential is estimated at over
    39,000 residential units -- 100% in the economy segment.

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