Gafisa 3Q15 results

SAO PAULO, Nov. 6, 2015 /PRNewswire/ -- Gafisa S.A. (Bovespa: GFSA3; NYSE: GFA), one of Brazil's leading homebuilders, today reported financial results for the third quarter ended September 30, 2015.

FINANCIAL RESULTS

• Net revenue recognized by the "PoC" method was R$402.5 million in the Gafisa segment and R$221.5 million in the Tenda segment. This resulted in consolidated revenue of R$624.0 million in the third quarter, a 26.3% increase year on year, and a 5.5% increase from the previous quarter. In 9M15, consolidated net revenue reached R$1.7 billion, an increase of 15.5% compared to 9M14.

•  Adjusted gross profit for 3Q15 was R$223.8 million, up from R$200.4 million in 3Q15 and from R$179.9 million in the same period of last year. Adjusted gross margin reached 35.9%, compared to 36.4% in the prior-year period and 33.9% in the 2Q15. Gafisa accounted for an adjusted gross profit of R$152.6 million, with an adjusted gross margin of 37.9%, while Tenda accounted for an adjusted gross profit of R$71.2 million, with a margin of 32.1% in 3Q15. In the 9M15, adjusted gross profit totaled R$603.5 million with an adjusted gross margin of 34.8%, versus R$517.3 million in the previous year.

• Adjusted EBITDA was R$92.4 million in 3Q15, with a margin of 14.8%. The Gafisa segment reported adjusted EBITDA of R$66.8 million, while the Tenda segment's adjusted EBITDA was R$24.4 million. In 9M15 consolidated adjusted EBITDA was R$261.6 million, an increase of 37.8% from R$189.8 million in 9M14, with a 15.1% margin. Please note that consolidated adjusted EBITDA includes Alphaville equity income, while the Gafisa segment's adjusted EBITDA is net of this effect.

• The Company reported positive net income of R$13.5 million in the third quarter. Gafisa reported a net profit of R$1.7 million, while Tenda reported a profit of R$11.8 million. In the first nine months, net income totaled R$73.6 million.

• Operating cash generation totaled R$78.5 million in the 3Q15, closing the nine month period at R$95.3 million. Net cash consumption of R$6.5 million was recorded in 3Q15, with accumulated consumption of R$104.3 million during 9M15.

OPERATING RESULTS

• Launches totaled R$606.8 million in the 3Q15, comprising 13 projects in the states of Sao Paulo, Rio de Janeiro, Minas Gerais, Rio Grande do Sul, Bahia and Pernambuco. The result was an increase over the R$482.0 million launched in 2Q15. The Gafisa segment accounted for 47% of the quarter's launches, while the Tenda segment accounted for the remaining 53%. The volume launched in the 9M15 totaled R$1.4 billion.

• Net pre-sales totaled R$492.8 million in 3Q15, of which R$247.6 million related to Gafisa and R$245.2 million related to Tenda. The consolidated result was a significant increase from the 3Q14 net pre-sales result of R$230.8 million. Consolidated sales from launches in the quarter represented 16.8% of the total, while sales from inventory comprised the remaining 83.2%. During the 9M15, the two segments combined reported R$1.4 billion in net pre- sales.

• Consolidated sales over supply (SoS) reached 14.8% in 3Q15, compared to 15.9% in 2Q15 and 6.7% in 3Q14. On a trailing 12-month basis, Gafisa's SoS was 29.6%, while Tenda's SoS was 52.4%.

• Consolidated inventory at market value remained stable q-o-q at R$2.8 billion. Gafisa's inventory totaled R$2.0 billion, while Tenda's inventory totaled R$820.7 million.

• Throughout the third quarter, the Company delivered 5 projects/phases, totaling 1,304 units, accounting for R$197.5 million in PSV. The 3Q15 launches were exclusively from the Tenda segment. Over the past nine months, 30 projects / phases and 7,576 units were delivered, accounting for 1.9 billion in PSV.

For additional information: www.gafisa.com.br/ri - [email protected]

GAFISA  - 20-F 2014

GAFISA S.A. (Bovespa, GFSA3; NYSE, GFA) ("Gafisa" or, including all its subsidiaries, the "Company") hereby informs its shareholders and the market in general that its Form 20-F for the year 2014, which was filed on April 27th with the U.S. Securities Exchange Comission (SEC), is available at the Gafisa's Investor Relations website at the address: www.gafisa.com.br/ir. The Company's shareholders may receive a hard copy of the Audited Financial Statements, free of charge, upon request. For additional information: www.gafisa.com.br/ri - [email protected]

Contact:Gafisa S.A.Av. Nacoes Unidas, 8501 – 18th floor - CEP 05425-070Alto de Pinheiros - Sao Paulo – SPTelephone: +55 11 3025-9242E-mail: [email protected]

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SOURCE Gafisa S.A.