GEO Low-Income Customer Focus Leads to Outstanding 2Q10 Results

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Jul 27, 2010, 04:10 ET

MEXICO CITY, July 27 /PRNewswire-FirstCall/ -- Corporacion GEO S.A.B. de C.V. (BMV: GEOB; CORPGEO MX, ADR Level I CUSIP: 21986V204; Latibex: XGEO) GEO, Mexico's leading low-income housing developer, today announced results for the second quarter 2010. 2Q10 Revenues and EBITDA increased 12.7% and 6.4% respectively, compared to the second quarter 2009.

Luis Orvananos Lascurain, Corporacion GEO's CEO, commented, "We're reporting extraordinary results for our second quarter, which again positions GEO as the leading low-entry homebuilder in Mexico. Our Company achieved a new homes-titled record -the highest number of weekly titles ever- and 14,919 houses titled this quarter, which represents a 12.5% increase compared to the second quarter 2009. We also achieved outstanding year on year revenue and EBITDA growth, supported by our lower-income focused strategy."

"GEO's strong customer focus continues to be the main catalyst for our continued growth and success. We have demonstrated the importance of developing sustainable communities for Mexico´s families that include community and commercial centers, as well as green areas. Moreover, GEO provides clients with unique 'green' options to customize each home in a way that will generate important savings and optimize resource use," Mr. Orvananos added.

Financial Highlights
	Second Quarter			Six - Month Period
Income Statement Data	2010	2009	YoY var.	2010	2009	YoY var.
Sales (titled units)	14,919	13,265	12.47%	25,032	23,041	8.64%
Revenues	$5,208.2	$4,622.0	12.68%	$8,971.0	$7,863.4	14.09%
Gross Profit	$1,317.4	$1,206.6	9.18%	$2,328.4	$2,019.9	15.27%
Gross Margin	25.3%	26.1%	-0.81 pp	26.0%	25.7%	0.27 pp
Operating Profit	$798.9	$757.5	5.47%	$1,427.1	$1,199.2	19.00%
Operating Margin	15.3%	16.4%	-1.05 pp	15.9%	15.3%	0.66 pp
Profit before Taxes	$555.8	$634.4	-12.39%	$1,096.1	$951.6	15.19%
Profit before Taxes Margin	10.7%	13.7%	-3.05 pp	12.2%	12.1%	0.12 pp
EBITDA	$1,126.2	$1,058.5	6.40%	$1,990.2	$1,746.0	13.98%
EBITDA Margin	21.6%	22.9%	-1.28 pp	22.2%	22.2%	0 pp
Net Profit	$380.5	$386.5	-1.57%	$685.2	$586.7	16.79%
Net Margin	7.3%	8.4%	-1.06 pp	7.6%	7.5%	0.18 pp
Free Cash Flow	$733.2	-$270.2	$1,003.4	-$1,442.2	-$524.3	-$917.9

	Quarter - Quarter
Balance Sheet Data	2Q10	1Q10	QoQ var.
Cash and Cash Equivalents	$4,743.5	$1,176.7	303.12%
Working Capital Cycle	535 days	550 days	-16 days
Total Debt	$12,023.2	$8,417.7	42.83%
Interest Coverage	3.1 x	3.2 x	-0.1 x
Net Debt to EBITDA (LTM)	1.7 x	1.7 x	0.0 x

(Non audited 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 56 cities and municipalities across 17 states, GEO is one of the most geographically diversified homebuilders in Mexico. Since its inception GEO has sold more than 510,000 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.

SOURCE Corporacion GEO, S.A.B. de C.V.