Corporacion GEO Reports Solid 4Q09 and Full Year Results
MEXICO CITY, March 1 /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 fourth quarter 2009. Revenues and EBITDA increased 13.1% and 11.7%, respectively, in the fourth quarter 2009.
"GEO affirmed its leadership position within the low-income segments in 2009 with the largest number of titled mortgages and greatest market share within INFONAVIT (8.1%) and FOVISSSTE (13.8%); approximately 70% and 116% more titled mortgages, respectively, than our closest peer. We continue to fine-tune each link in our value chain, improving efficiencies and quality while lowering costs to ensure we most effectively serve the lowest income segments," commented Luis Orvananos Lascurain, Corporacion GEO's CEO.
"GEO's business model and execution also continue to be extremely successful. This quarter, substantial revenue and EBITDA increases have helped us maintain our sound balance sheet. In 2009, we titled 51,283 units, a 14.7% increase compared to the 44,729 units titled in 2008. We improved overall debt levels, as is reflected in lower leverage ratios, ending the year with the most efficient working capital cycle in the Mexican homebuilding industry. Finally, we generated substantial free cash flow in the last quarter of the year, resulting in full year positive free cash flow. These strong results are a testament to the strength of GEO's operations and our ability to prevail in a challenging economic environment, as was witnessed in 2009," he concluded.
Financial Highlights
Fourth Quarter Twelve-Month Period
Income Statement ------------------------ -------------------------
Data 2009 2008 YoY var. 2009 2008 YoY var.
---------------- ---- ---- -------- ---- ---- --------
Sales
(units) 16,351 14,230 14.91% 56,537 51,879 8.98%
Revenues $5,776.5 $5,106.8 13.11% $19,210.9 $17,453.0 10.07%
Gross Profit $1,516.6 $1,319.2 14.96% $4,982.5 $4,600.6 8.30%
Gross Margin 26.3% 25.8% 0.42 pp 25.9% 26.4% -0.42pp
Operating
Profit $1,065.8 $853.9 24.81% $3,306.8 $2,928.5 12.91%
Operating
Margin 18.5% 16.7% 1.73 pp 17.2% 16.8% 0.43 pp
EBITDA $1,325.1 $1,186.5 11.67% $4,415.2 $4,118.7 7.20%
EBITDA
Margin 22.9% 23.2% -0.3 pp 23.0% 23.6% -0.62 pp
Net Profit $331.6 $331.7 -0.04% $1,528.6 $1,473.2 3.76%
Net Margin 5.7% 6.5% -0.76 pp 8.0% 8.4% -0.48 pp
Free Cash
Flow $1,341.6 $107.9 $1,233.7 $184.6 -$1,751.9 $1,936.5
Fourth Quarter Quarter - Quarter
------------------------ -----------------
Balance Sheet Data 2009 2008 YoY var. 3Q09 QoQ var.
------------------ ---- ---- -------- ---- --------
Cash and Cash
Equivalents $3,393.4 $2,578.3 31.61% $3,975.7 -14.65%
Acc. Receivable to
Revenues 51.4% 47.8% 3.59 pp 51.9% -0.46 pp
Net Debt $4,853.4 $4,865.6 -0.25% $5,707.0 -14.96%
Interest Coverage 3.0x 2.7x 0.3x 3.0x -0.1x
Net Debt to EBITDA (LTM) 1.1x 1.2x -0.1 x 1.3x -0.2x
(Fully 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 54 cities across 16 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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