GEO Reports Third Quarter Results In Line with Growth Strategy and 2010 Guidance

Oct 27, 2010, 17:00 ET from Corporacion GEO, S.A.B. de C.V.

MEXICO CITY, Oct. 27 /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 2010. 3Q10 Revenues and EBITDA increased 6.6% and 8.4% respectively, compared to the third quarter 2009. As of September 2010, these figures grew 11.4% and 12.0% respectively, in line with our growth expectations.

Luis Orvananos Lascurain, Corporacion GEO's CEO, commented, "GEO again maintained its outstanding levels of mortgage origination with Mexico's key housing institutions this quarter. The Company remains the low-income homebuilding leader, with 9.0% of INFONAVIT's market share, the largest of the homebuilding peers; 83% of GEO's 13,020 homes titled this quarter were titled through INFONAVIT. Moreover, we are seeing significant growth in mortgage origination from Mexico's informal sector, which is consistent with GEO's strategy to address this market through the GEOFacil program."

Mr. Orvananos added, "GEO also continues strengthening its position within Mexico by expanding operations. In the third quarter, GEO opened two new operations in the states of Hidalgo and Chiapas, as part of our strategy to increase market share in new cities and municipalities while developing sustainable communities that improve our customers' quality of life."  

Financial Highlights


Third Quarter


Nine - Month Period

Income Statement Data

2010

2009

YoY var.


2010

2009

YoY var.

Sales (titled units)

13,020

12,824

1.53%


38,052

35,865

6.10%

Revenues

$4,586.4

$4,303.0

6.58%


$13,557.3

$12,166.4

11.43%

Gross Profit

$1,187.2

$1,180.4

0.58%


$3,515.7

$3,200.4

9.85%

Gross Margin

25.9%

27.4%

-1.55 pp


25.9%

26.3%

-0.37 pp

Operating Profit

$771.1

$765.7

0.70%


$2,198.2

$1,964.9

11.87%

Operating Margin

16.8%

17.8%

-0.98 pp


16.2%

16.2%

0.06 pp

Profit before Taxes

$628.7

$703.1

-10.59%


$1,724.8

$1,654.7

4.24%

Profit before Taxes Margin

13.7%

16.3%

-2.63 pp


12.7%

13.6%

-0.88 pp

EBITDA

$1,079.6

$995.7

8.42%


$3,069.8

$2,741.8

11.96%

EBITDA Margin

23.5%

23.1%

0.4 pp


22.6%

22.5%

0.11 pp

Net Profit

$433.2

$431.1

0.49%


$1,118.5

$1,017.8

9.89%

Net Margin

9.4%

10.0%

-0.57 pp


8.2%

8.4%

-0.12 pp

Free Cash Flow to the Firm

$555.0

-$398.3

$953.3


-$887.2

-$200.0

-$687.2




















Quarter - Quarter




Balance Sheet Data

3Q10

2Q10

QoQ var.





Cash and Cash Equivalents

$1,937.2

$4,743.5

-59.16%





Working Capital Cycle

541 days

535 days

06 days





Total Debt

$9,523.6

$12,023.2

-20.79%





Interest Coverage

3.0 x

3.1 x

-0.1 x





Net Debt to EBITDA (LTM)

1.8 x

1.7 x

0.1 x





(Non audited financial figures in million of pesos)

*Adjusted 2009 figures



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 19 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.



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