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GEO Reports Results for the Third Quarter of 2012

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MEXICO CITY, Oct. 25, 2012 /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 2012. Accumulated Revenues, EBITDA and Net Profit increased 6.6%, 8.9% and 8.4% respectively compared to the prior year.

Luis Orvananos Lascurain, Corporacion GEO´s CEO, commented, "Revenue increased 6.6% during the first nine months, in line with our expectations for conservative revenue growth this year as part of our strategy, which will allow us to continue strengthening the Company's balance sheet and Free Cash Flow. There is no doubt that executing the right strategy continues to position GEO as leader throughout this transition to sustainability." 

He continued, "I'm confident that GEO's dedicated and experienced team will ensure that we reach our 2012 goals as we continue on our mission to offer our clients a better quality of life through a high-quality home."

Financial Highlights 

















Third Quarter



Nine - Month Period

Income Statement Data

2012

2011

YoY var.



2012

2011

YoY var.

Sales (delivered units)

12,688

14,307

-11.32%



42,861

42,125

1.75%

Revenues

$4,496.8

$4,631.9

-2.92%



$14,768.5

$13,856.6

6.58%

Gross Profit

$1,426.7

$1,515.1

-5.84%



$4,599.8

$4,428.8

3.86%

Gross Margin

31.7%

32.7%

-0.98 pp



31.1%

32.0%

-0.82 pp

Operating Profit

$657.6

$691.2

-4.87%



$2,324.1

$2,174.9

6.86%

Operating Margin

14.6%

14.9%

-0.3 pp



15.7%

15.7%

0.04 pp

Profit before Taxes

$568.1

$499.0

13.83%



$1,458.7

$1,565.2

-6.80%

Profit before Taxes Margin

12.6%

10.8%

1.86 pp



9.9%

11.3%

-1.42 pp

EBITDA

$1,047.5

$1,063.0

-1.46%



$3,315.2

$3,044.3

8.90%

EBITDA Margin

23.3%

23.0%

0.34 pp



22.4%

22.0%

0.48 pp

Net Profit

$356.6

$204.6

74.31%



$876.0

$808.3

8.38%

Net Margin

7.9%

4.4%

3.51 pp



5.9%

5.8%

0.1 pp

Free Cash Flow to Equity (1)

$412.3

-$1,379.2

$1,791.5



-$1,114.3

-$2,860.7

$1,746.4



















Quarter - Quarter









Balance Sheet Data

3Q12

2Q12

QoQ var.









Cash and Cash Equivalents

$2,126.2

$2,549.8

-16.61%









Working Capital Cycle 

645 days

624 days

21 days









Total Debt (2)

$13,502.5

$14,706.8

-8.19%









Interest Coverage

2.2 x

2.3 x

-0.1 x









Net Debt to EBITDA (LTM)

2.4 x

2.6 x

-0.2 x

























Figures discussed in this announcement have been reformulated as of September 30, 2011 in accordance with IFRS "International Financial Reporting Standards". Financial Statements as of September 30, 2012 were revised by external auditors.

These figures are expressed in nominal pesos. Tables state figures in millions of pesos unless otherwise noted.

(1) Non-reformulated 2011 figures under IFRS.

(2) Total debt obligation with financial institutions.

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 22 states, GEO is one of the most geographically diversified homebuilders in Mexico. Since its inception GEO has sold more than 600,000 homes which currently provide housing to 2,200,000 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 may contain 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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