MEXICO CITY, Oct. 26 /PRNewswire-FirstCall/ -- Corporacion GEO S.A.B. de C.V. GEO, Mexico's leading low-income housing developer, today announced results for the third quarter 2009. Year-on-year Revenues, EBITDA and Net Profit increased 9.3%, 4.2% and 4.5% respectively.
Luis Orvananos Lascurain, CEO of Corporacion GEO, commented, "We had an outstanding third quarter, with results that are a continued reflection of our successful strategy selling high quality homes to a market where there is significant demand and continued government support. GEO's superior market share of INFONAVIT and FOVISSSTE mortgages has also allowed us to maintain our leadership position in the low-income housing segment; GEO sold 14,334 houses in 3Q09, 93% through these two institutions. This quarter, our ability to tap the international markets has also allowed us to significantly improve GEO's debt profile, a reflection of the financial community's confidence in our future success."
"Based on these and other successes this quarter, we maintain a positive outlook for the balance of 2009 and for 2010. We also believe industry conditions should improve, driven by an increased housing demand," he concluded.
Financial Highlights
Third Quarter
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Income Statement Data 2009 2008 YoY var.
--------------------- ---- ---- --------
Sales (units) 14,334 13,349 7.38%
Revenues $4,624.7 $4,231.7 9.29%
Gross Profit $1,189.7 $1,125.5 5.71%
Gross Margin 25.7% 26.6% -0.87 pp
Operating Profit $785.5 $713.0 10.16%
Operating Margin 17.0% 16.8% 0.14 pp
EBITDA $1,062.0 $1,018.9 4.23%
EBITDA Margin 23.0% 24.1% -1.11 pp
Net Profit $405.8 $388.2 4.54%
Net Margin 8.8% 9.2% -0.4 pp
Free Cash Flow -$632.7 -$89.3 -$543.4
Nine-Month Period
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Income Statement Data 2009 2008 YoY var.
--------------------- ---- ---- --------
Sales (units) 40,186 37,649 6.74%
Revenues $13,434.4 $12,346.2 8.81%
Gross Profit $3,465.9 $3,281.3 5.62%
Gross Margin 25.8% 26.6% -0.78pp
Operating Profit $2,241.0 $2,074.6 8.02%
Operating Margin 16.7% 16.8% -0.12 pp
EBITDA $3,090.1 $2,932.2 5.39%
EBITDA Margin 23.0% 23.7% -0.75 pp
Net Profit $1,196.9 $1,141.5 4.86%
Net Margin 8.9% 9.2% -0.34 pp
Free Cash Flow -$1,157.0 -$1,859.8 $702.8
Third Quarter Quarter - Quarter
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YoY QoQ
Balance Sheet Data 2009 2008 var. 2Q09 var.
------------------ ---- ---- ---- ---- ----
Cash and Cash Equivalents $3,975.7 $2,229.3 78.34% $2,772.9 43.38%
Acc. Receivable to Revenues 51.9% 45.9% 5.96 pp 48.5% 3.33 pp
Net Debt $5,707.0 $4,906.8 16.31% $5,113.5 11.61%
Interest Coverage 3.0x 2.7x 0.3x 2.7x 0.3x
Net Debt to EBITDA (LTM) 1.3x 1.2x 0.1x 1.2x 0.1x
(Unaudited financial figures in million of pesos)
To obtain the full text of this earnings release, please visit our Investor Relations website at www.corporaciongeo.com under the Shareholder Information section.
About Corporacion GEO S.A.B. de C.V.
Corporacion GEO is a leading housing developer in Mexico and one of the largest in Latin America. The Company is engaged in all aspects of design, development, construction, marketing, sales and delivery of mainly low-income housing developments in Mexico. With operations in 52 cities across 16 states, GEO is one of the most geographically diversified homebuilders in Mexico. Since its inception GEO has sold more than 450,000 homes which currently provide housing to 2,000,000 people. GEO's Solid Business Model focuses mainly in the Affordable Entry Level and Economic segments, which are supported by government policies and by the Mexican Housing Institutions INFONAVIT and FOVISSSTE. For more information, visit www.corporaciongeo.com
Safe Harbor Statement
This release contains forward-looking statements regarding the Company's results and business prospects. The readers should know that the results obtained may differ from that stated on this release. Past performances do not guarantee the behavior of future performances. The Company undertakes no obligation to update any of these statements, either as a result of new information, future actions or other related events.
Corporacion GEO S.A.B. de C.V.
