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.

FINANCIAL RESULTS

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.

CONFERENCE CALL WITH SIMULTANEOUS TRANSLATION TO ENGLISH
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
Webconference: http://extranet.voitel.com.br/audiocasting/Audiocasting_Acesso.aspx?Pag=Participante&NameRoom=N24018047

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