GEO Reports 3Q11 Results

Oct 26, 2011, 17:36 ET from Corporacion GEO S.A.B. de C.V.

MEXICO CITY, Oct. 26, 2011 /PRNewswire/ -- Corporacion GEO S.A.B. de C.V. (BMV: GEOB; GEOB:MM, ADR Level I CUSIP: 21986V204; Latibex: XGEO) GEO, Mexico's leading low-income housing developer, today announced results for the third quarter of 2011. For this period, Revenues and EBITDA increased 9.3% and 15.9% respectively, year on year.

Luis Orvananos Lascurain, Corporacion GEO's CEO, commented, "Revenues increased 9.3 percent in the third quarter, and a total of 13,775 units were sold, which again positions GEO as leader in low-income sustainable community development. Moreover, INFONAVIT's considerable success allocating mortgages to the low-income segments continues to translate into further opportunities for GEO to strengthen our market share. This quarter we again maintained our leadership position with 9.4 percent of the INFONAVIT's market share, as of September 2011."

He continued, "The industry's transition to sustainable growth also represents important opportunities to continue strengthening our operations in both the short and long term. We know that the current economic environment represents challenges for our Company; however our long-term focus on improved financial equilibrium will allow us to take advantage of future industry opportunities. Today, our committed team continues fine-tuning and strengthening our operational efficiencies which, combined with GEO's superior product, makes us certain that GEO will achieve strong year-end results".

Financial Highlights


Third Quarter


Nine - Month Period

Income Statement Data

2011

2010

YoY var.


2011

2010

YoY var.

Sales (titled units)

13,775

13,020

5.80%


39,961

38,052

5.02%

Revenues

$5,012.6

$4,586.4

9.29%


$14,931.7

$13,557.3

10.14%

Gross Profit

$1,619.3

$1,449.2

11.74%


$4,722.9

$4,196.3

12.55%

Gross Margin

32.3%

31.6%

0.71 pp


31.6%

31.0%

0.68 pp

Operating Profit

$802.9

$709.9

13.09%


$2,396.5

$2,097.1

14.28%

Operating Margin

16.0%

15.5%

0.54 pp


16.0%

15.5%

0.58 pp

Profit before Taxes

$606.5

$567.6

6.87%


$1,869.2

$1,623.6

15.13%

Profit before Taxes Margin

12.1%

12.4%

-0.27 pp


12.5%

12.0%

0.54 pp

EBITDA

$1,179.9

$1,018.5

15.85%


$3,370.0

$2,968.6

13.52%

EBITDA Margin

23.5%

22.2%

1.33 pp


22.6%

21.9%

0.67 pp

Net Profit

$359.0

$365.5

-1.77%


$1,088.8

$1,022.7

6.46%

Net Margin

7.2%

8.0%

-0.81 pp


7.3%

7.5%

-0.25 pp

Free Cash Flow to Equity (1)

-$1,379.2

$204.7

-$1,583.9


-$2,860.7

-$1,850.8

-$1,009.9










Quarter - Quarter




Balance Sheet Data

3Q11

2Q11

QoQ var.





Cash and Cash Equivalents

$1,774.1

$2,085.4

-14.93%





Working Capital Cycle

575 days

552 days

23 days





Total Debt (2)

$12,739.8

$10,052.4

26.73%





Interest Coverage

2.7 x

2.7 x

0.0 x





Net Debt to EBITDA (LTM)

2.4 x

1.8 x

0.6 x







Unaudited financial figures: Figures discussed in this announcement have been reformulated as of September 30, 2010 in accordance to NIF "Normas de Informacion Financiera" Mexican Accounting Principles. The figures are expressed in nominal pesos. Tables state figures in millions of pesos unless otherwise noted.

(1) Non-reformulated 2010 figures, 2011 Free Cash Flow figures exclude Fair Value of Total Debt

(2) Total debt obligations with financial institutions

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 20 states, GEO is one of the most geographically diversified homebuilders in Mexico. Since its inception GEO has sold more than 560,000 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.



RELATED LINKS

http://www.corporaciongeo.com