Continued Success of its Low Income Strategy
MEXICO CITY, Oct. 26 /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
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
-------------
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
-----------------
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
------------- -----------------
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.
SOURCE Corporacion GEO S.A.B. de C.V.
Hans Schroeder, Investor Relations Officer, +(52)-55-5480-5071,
hschroeder@casasgeo.com, or Francisco Martinez, Investor Relations,
+(52)-55-5480-5156, fmartinezg@casasgeo.com, both of Corporacion GEO, S.A.B.
de C.V.
