GEO Reports Strong 2010 Results, On Track for Continued Growth
MEXICO CITY, Feb. 16, 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 fourth quarter 2010. Accumulated Revenues and EBITDA increased 8.1% and 8.9%, respectively, compared to the prior year.
Luis Orvananos Lascurain, Corporacion GEO's CEO, commented, "In 2010, we continued to consolidate our leadership position in the low-income housing segments by creating sustainable communities that improve Mexican families' quality of life. GEO sold 56,093 units in 2010, a 9.4% increase compared with 2009. By year's end, we held 9.2% and 10.1%, respectively, of the overall INFONAVIT and FOVISSSTE market share, which again confirmed GEO as the undisputed leader in homes titled with both institutions."
Mr. Orvananos continued, "We maintain a positive outlook for 2011. We will continue to take advantage of opportunities to expand our presence in the domestic market while benefiting from the strength of our strategy, employees and operations, which sets us apart from the rest of the industry. GEO's commitment to providing economic, social, and environmental benefits to customers while increasing profits is a priority, and we will continue focusing on growth to meet our Company's goals."
Financial Highlights |
||||||||
Fourth Quarter |
Twelve-Month Period |
|||||||
Income Statement Data |
2010 |
2009 |
YoY var. |
2010 |
2009 |
YoY var. |
||
Sales (titled units) |
18,041 |
15,418 |
17.01% |
56,093 |
51,283 |
9.38% |
||
Revenues |
$5,597.1 |
$5,546.8 |
0.91% |
$19,154.4 |
$17,713.2 |
8.14% |
||
Gross Profit |
$1,426.2 |
$1,429.7 |
-0.25% |
$4,941.9 |
$4,630.1 |
6.73% |
||
Gross Margin |
25.5% |
25.8% |
-0.29 pp |
25.8% |
26.1% |
-0.34 pp |
||
Operating Profit |
$904.8 |
$973.9 |
-7.09% |
$3,103.0 |
$2,938.8 |
5.59% |
||
Operating Margin |
16.2% |
17.6% |
-1.39 pp |
16.2% |
16.6% |
-0.39 pp |
||
Profit before Taxes |
$629.2 |
$579.1 |
8.66% |
$2,354.0 |
$2,233.8 |
5.38% |
||
Profit before Taxes Margin |
11.2% |
10.4% |
0.8 pp |
12.3% |
12.6% |
-0.32 pp |
||
EBITDA |
$1,240.8 |
$1,218.2 |
1.86% |
$4,310.5 |
$3,959.9 |
8.85% |
||
EBITDA Margin |
22.2% |
22.0% |
0.21 pp |
22.5% |
22.4% |
0.15 pp |
||
Net Profit |
$371.8 |
$346.5 |
7.30% |
$1,490.3 |
$1,364.3 |
9.23% |
||
Net Margin |
6.6% |
6.2% |
0.4 pp |
7.8% |
7.7% |
0.08 pp |
||
Free Cash Flow to the Firm * |
$1,002.9 |
$1,167.9 |
-$164.9 |
$115.7 |
$1,588.9 |
-$1,473.3 |
||
Quarter - Quarter |
||||
Balance Sheet Data |
4Q10 |
3Q10 |
QoQ var. |
|
Cash and Cash Equivalents |
$2,228.4 |
$1,937.2 |
15.03% |
|
Working Capital Cycle |
543 days |
541 days |
2 days |
|
Total Debt |
$9,200.2 |
$9,523.6 |
-3.40% |
|
Interest Coverage |
2.8 x |
3.0 x |
-0.2 x |
|
Net Debt to EBITDA (LTM) |
1.6 x |
1.8 x |
-0.2 x |
|
(Audited financial figures in million of pesos) |
|
* The figures discussed in this announcement have been reformulated as of December 31, 2009 full year results, in accordance to the INIF-14 Accounting Principle. |
|
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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