SOURCE: Gafisa S.A.

Gafisa S.A.

February 28, 2015 09:06 ET

Gafisa Releases 4Q14 Results

SAO PAULO, BRAZIL--(Marketwired - Feb 28, 2015) - Gafisa S.A. (BOVESPA: GFSA3) (NYSE: GFA), one of Brazil's leading diversified national homebuilders today reported financial results for the fourth quarter and the year ended December 31, 2014.


Net revenue recognized by the "PoC" method was R$490.9 million in the Gafisa segment and R$158.3 million in the Tenda segment. This resulted in consolidated revenue of R$649.3 million in the fourth quarter, a reduction of 7.9% year on year, and of 31.4% from the previous quarter. In the 12M14, net revenue reached R$2.2 billion, 13.3% lower than 2013.

Adjusted gross profit for 4Q14 was R$196.1 million, down from R$266.9 million in 4Q13 and higher than R$179.9 million in the previous quarter. Adjusted gross margin reached 30.2% versus 37.9% in the prior-year period and 36.4% in the 3Q14. Gafisa's contribution was an adjusted gross profit of R$150.8 million, with an adjusted margin of 30.7%, while Tenda's contribution was R$45.3 million, with a margin of 28.6% in 4Q14. For 2014, consolidated adjusted gross profit was R$713.3 million, and adjusted gross margin was 33.2%.

Adjusted EBITDA was R$71.7 million in 4Q14. The Gafisa segment reported adjusted EBITDA of R$81.8 million, while the Tenda segment's adjusted EBITDA was negative R$30.9 million. Please note that consolidated adjusted EBITDA includes Alphaville equity income, while the Gafisa segment's adjusted EBITDA is net of this effect. At the end of 12M14, consolidated adjusted EBITDA reached R$261.5 million. Consolidated EBITDA margin reached 11.0% in 4Q14 and 12.2% in 12M14.

The Company reported a positive net income of R$8.0 million in the fourth quarter. Gafisa reported a net profit of R$36.8 million, including the R$20.7 million contribution from Alphaville, while Tenda reported a loss of R$28.8 million. In the 12M14, the net loss reached R$42.5 million. Gafisa reported a net profit of R$66.9 million while Tenda reported a net loss of R$109.4 million.

Operating cash generation reached R$103.1 million in the 4Q14 and R$298.6 million in the 12M14. In the 4Q14, the Company recorded net cash generation of R$38.3 million, ending the year with free cash flow of R$81.0 million.

Date: March 2nd, 2014
Time: 11h00 (Brasilia)/9:00 AM (New York)
Telephone (Brazil): +55 (11) 3728-5971
Telephone (USA and other countries): +1 516 300-1066
Access Code: Gafisa

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