brasil brokers reports 3q11 results · 2015. 12. 14. · brasil brokers reports 3q11 results rio de...

1

3Q11 Earnings Release

3Q11 Results Conference

Call

Portuguese

November 16, 2011

11:00 a.m. (Brasília)

8:00 a.m. (NY)

Tel.: +55 (11) 2188-0155

Password: BR Brokers

Replay: +55 (11) 2188-0155

Replay Password: BR Brokers

English

November 16, 2011

2:00 p.m. (Brasília)

11:00 a.m. (NY)

Tel.: +1 (412) 317-6776

Password: BR Brokers

Replay: +1 (412) 317-0088

Replay Password: 10005235

IR Contact

Álvaro Soares

CFO and Investor Relations

Officer

Tel.: +55 (21) 3433-3000

e-mail: [email protected]

www.brbrokers.com.br

Brasil Brokers reports 3Q11 results

Rio de Janeiro, November 14, 2011. Brasil Brokers Participações S.A.

(BM&FBovespa: BBRK3), a real estate brokerage and consulting firm with a strong presence in Brazil’s major real estate markets, hereby announces its results for the third quarter of 2011 (3Q11).

The Company’s consolidated financial statements are prepared in accordance with generally accepted accounting principles in Brazil (BR GAAP), pursuant to Brazilian

Corporation Law and the rules of the Securities and Exchange Commission of Brazil (CVM).

3Q11 Highlights

Launched PSV grew by 59% in 3Q11 over 3Q10,

totaling R$10.4 billion;

In 3Q11, contracted sales increased 34% over 3Q10, reaching R$5.2 billion;

Contracted sales in the primary market rose by 37% in 3Q11 over 3Q10;

Net revenue went up by 32% in 3Q11 when compared with 3Q10;

In 3Q11, EBITDA was R$43.8 million, up 42%

from 3Q10, with a 2 p.p. increase in EBITDA margin, from 37% to 39%;

Net income of R$33.5 million in 3Q11, up 72% from 3Q10, with a net margin increase of 7 p.p., from

23% in 3Q10 to 30% in 3Q11;

Between June and October this year, the Company

acquired four more real estate brokerages, which

jointly add an additional estimated annual PSV of

R$1.4 billion.

mailto:[email protected]

http://www.brbrokers.com.br/

2


Operating Performance

The following table presents the Company’s operating results for the third quarter of 2011, with

comparisons in relation to the third quarter of 2010.

(1) Total PSV from developments launched by Brasil Brokers on an exclusive or partnership basis. (2) Includes 100% of Abyara Brokers’ numbers.

Operating Highlights 3Q10 (2) 3Q11 (2)

PSV (R$ thousands) (1) 6,496,941 10,345,217

Launched Units 28,599 33,668

Contracted Sales (R$ thousand) 3,882,326 5,191,133

Units Sold 17,521 19,626

28,599

33,668

3Q10 3Q11

Launched Units

18%

17,521

19,626

3Q10 3Q11

Units Sold

6,497

10,345

3Q10 3Q11

PSV (R$ MM)

3,882

5,191

3Q10 3Q11

Contracted Sales (R$ MM)

3


Sales by Market Segment In 3Q11, Contracted Sales totaled R$5,191 million, of which R$4,405 million originated from the

sale of launches, R$668 million from the resale of units and R$118 million from the sale of office

space and lots. Sales of residential and commercial units totaled R$4,877 million(1).

(1) Contracted Sales of residential and commercial units exclude the contracted sales of Primaz and of lots.

(2) ‘Other’ is composed of the contracted sales of Primaz and of lots.

66,929

88,215

9M10 9M11

Launched Units

49,289

55,744

9M10 9M11

Units Sold

11,092

14,176

9M10 9M11

Contracted Sales (R$ MM)

15,197

25,065

9M10 9M11

PSV (R$ MM)

82.8%

84.9%

16.5%

12.9%0.8%

3Q10 3Q11

Primary Market Secondary Market Others

2.3%

(2)

R$ 3,882 MM

R$ 5,191 MM

4


Sales by State of Operation

Primary Market In 3Q11, contracted sales from the launch of residential and commercial units totaled R$4,405

million(1), 74.9% of which was in the Southeast, 8.8% in the Northeast, 6.3% in the South, 6.2%

in the Midwest and 3.8% in the North.

(1) Excludes the contracted sales of Primaz and of lots.

Secondary Market

In 3Q11, property resales totaled R$668.5 million(1), of which 74.9% were in the Southeast,

12.6% in the South, 8.6% in the Midwest, 2.6% in the Northeast and 1.3% in the North.


SP52%

RJ18%

BA6%

GO5%

PR4%

MG4%

AM2%

Others8%

Primary Market - 3Q11

SP52%

RJ14%

BA5%

GO6%

MG5%

AM2%

Others16%


RJ51%

SP20%

RS9%

GO8%

MG3%

PR3%

PA1% Others

4%

Secondary Market - 3Q11

RJ54%

SP13%

RS9%

GO9%

MG7%

PA1%

Others6%


5


Sales by Income Segment

Primary Market

In 3Q11, of the total contracted sales of R$4,405 million(1) in the Primary Market, 14% came from

properties in the economic segment (up to R$150,000), 40% from the middle segment

(R$150,000 to R$350,000), 28% from the mid-high segment (R$350,000 to R$650,000) and

18% from the high segment (over R$650,000).


(2) Numbers include 100% of the Units Contracted of Abyara Brokers. Data above does not yet include the recent acquisitions M.

Garzon, Home Hunters, Vera Bernardes and Imóveis no Morumbi.

Economic (up to

R$150k)22%

Middle

(R$150 to R$350k)

41%

Mid-High

(R$350 to R$650k)

23%

High

(above R$650k)

14%


Contracted PSV

Economic

(up to R$150k)

14%

Middle

(R$150 to R$350k)

40%

Mid-High

(R$350 to R$650k)

28%

High

(above R$650k)

18%


Contracted PSV

Economic

(up to R$150k)

48%

Middle

(R$150 to R$350k)

38%

Mid-High

(R$350 to R$650k)

11%

High (above

R$650k)3%


Contracted Units

Economic

(up to R$150k)

37%

Middle

(R$150 to R$350k)

43%

Mid-High

(R$350 to R$650k)

16%

High

(above R$650k)

5%

Primary Market - 3Q11Contracetd Units

6


Secondary Market

Of the total of R$668.5 million(1) in contracted sales in 3Q11, 10% came from properties in the

economic segment (up to R$150,000), 30% from the middle segment (R$150,000 to

R$350,000), 28% from the mid-high segment (R$350,000 to R$650,000) and 32% from the high

segment (over R$650,000).


(2) Numbers include 100% of the Units Contracted of Abyara Brokers. Data above does not yet include the recent acquisitions M.

Garzon, Home Hunters, Vera Bernardes and Imóveis no Morumbi.

Economic

(up to R$150k)

10%

Middle

(R$150 to R$350k)

30%

Mid-High

(R$350 to R$650k)

28%

High

(above R$650k)

32%


Contracted PSV

Economic

(up to R$150k)

17%

Middle

(R$150 to R$350k)

33%Mid-High

(R$350 to R$650k)

24%

High

(above R$650k)

25%


Contracted PSV

Economic

(up to R$150k)

31%

Middle

(R$150 to R$350k)

40%

Mid-High

(R$350 to R$650k)

19%

High

(above R$650k)

10%


Contracted Units

Economic

(up to R$150k)

44%

Middle (R$150 to R$350k)

37%

Mid-High

(R$350 to R$650k)

14%

High

(above R$650k)

5%


Contracted Units

7


Other Operating Information

The following table presents other operating information from the subsidiaries, by region, on

September 30, 2011.

Financial Performance In this section we shall present the Company's results for 3Q11. Note that the Company's results

consolidate 100% of the results of the subsidiary Abyara Brokers.

Service Revenue Gross service revenue from Brasil Brokers’ subsidiaries, represented by brokerage commissions,

totaled R$125.9 million in 3Q11, for an average commission of 2.43% on contracted sales of

R$5.2 billion. After deducting sales taxes, Net Revenue in the quarter came to R$111.5 million,

for growth of 32% from R$84.2 million in 3Q10.

Southeast 12,065 624 1,011

Northeast 1,655 111 151

South 1,297 172 117

Midwest 892 118 148

North 743 56 90

TOTAL 16,652 1,081 1,517(1)

Includes Rede Morar's points of sale

Region Sales Forces Sales Point (1) Employees

84.2

111.5

3Q10 3Q11

Net Revenues (R$ MM)

8


HSBC Real Estate Loan

In 9M11, through our partnership with HSBC to offer real estate loans, we approved a total of

R$264.4 million in real estate financing, of which loan agreements worth R$166.2 million have

already been signed. Of this amount, R$105.6 million have already been billed by the Company

and its subsidiaries and recorded under Service Revenue, representing additional revenue of

R$4.7 million. The total number of financing agreements billed in the period was 514,

corresponding to an average loan amount of R$206,000. The loan-to-value ratio in the period was

60%.

Cost of Services and Operating Expenses

Operating Costs and Expenses stood at R$67.7 million in 3Q11, up 26.9% from 3Q10. After

subtracting expenses relating to the higher interest in Abyara, the new stores opened since 4Q10,

the new subsidiary Galvão Vendas, consolidated from 1Q11 on, and the one-off marketing

expenses related to brand unification, which occurred this quarter, Normalized Costs and

Expenses came to R$57.6 million in 3Q11. In comparison with 3Q10, Costs and Expenses were

7.9% higher, totaling R$53.4 million.

HSBC Real Estate Loan

(R$ MM) 2T11 3T11 9M11

Approved 147,7 116,8 264,4

Signed 80,4 85,9 166,2

Invoiced 24,8 80,8 105,6

Revenue 1,1 3,6 4,7

Financed Amount

(R$ MM) 3Q10 3Q11

Service Costs (4.6) (3.3)

G&A Expenses and Fees (47.1) (63.6)

Other Operating Expenses/Revenues (1.6) (0.8)

Total Operating Costs and Expenses (53.4) (67.7)

Stores Opening Expenses since 4Q10 - 3.4

Abyara's interest adjustment - 3.2

Costs and Expenses from New Subsidiaries - 1.7

One time marketing expenses - 1.8

Normalized Costs and Expenses (53.4) (57.6)

Total Costs and Expenses

9


Net Income

Brasil Brokers’ net income in 3Q11 stood at R$33.5 million, up 72% from the same period last

year, with net margin of 30.0%, for net margin increase of 7 p.p. from 3Q10.

*Net Margin

EBITDA

Brasil Brokers’ EBITDA in 3Q11 stood at R$43.8 million, up 42% from the same period last year,

with net margin of 39.0%, for net margin increase of 2 p.p. from 3Q10.

*EBITDA Margin

19.4

33.5

3Q10 3Q11

Net Income (R$MM) and Net Margin (%)

* 23%

* 30%

30.9

43.8

3Q10 3Q11

EBITDA (R$MM) and EBITDA Margin(%)

* 37%

* 39%

10


Income Tax and Social Contribution Tax

Brasil Brokers paid a total of R$13.1 million in Income Tax and Social Contribution on net income

in 3Q11. Brasil Brokers’ Income Tax and Social Contribution refers to the taxes on subsidiaries,

which corresponded to 10.4% of consolidated gross revenue.

Cash and Cash Equivalents

Cash and cash equivalents at the close of 3Q11 totaled R$278.7 million. These amounts refer

basically to financial investments in bank certificates of deposit and fixed income funds, with

yields ranging from 100.5% to 105% of the overnight interbank deposit (CDI) rate. The Company

also has receivables totaling R$113.5 million, with an average estimated term of 81 days.

The Company has no exposure to derivatives or any other instruments with exposure to foreign

exchange variation or stocks.

Operating cash flow in 3Q11 was R$30.6 million, thanks to the cash flow from operations of

R$58.8 million, which was partially offset by operational working capital requirements of R$28.2

million.

Cash flow from investment activities in the quarter was negative R$10.3 million. This amount

reflects the renovation and maintenance of our facilities, expansion of our stores, mainly in the

secondary market, as well as investments in systems and equipment related to the consolidation

of our operations.

Cash flow from financing activities in 3Q11 was a negative R$8.5 million, due to the payment for

the acquisition of companies and the distribution of dividends to minority shareholders.

Debt

At the end of 3Q11 the Company did not have obligations with loans and financing lines.

With the conclusion of the acquisitions of Galvão Vendas in 1Q11, M. Garzon Eugênio, Vera

Bernardes Assessoria Imobiliária and Home Hunters in 3Q11, the Company’s Accounts Payable

balance in the quarter came to R$62.2 million, which represents the best estimate for this

acquisition under the base-case scenario of the companies’ performance.

The Company has no liabilities based on derivative operations or pegged to exchange rates.

Cash Flow (R$ million) 3Q11

Cash and Cash Equivalents 267.0

Operating Activities 30.6

Investment Activities (10.3)

Financial Activities (8.5)

Cash and Cash Equivalents in the end of the period 278.7

11


Financial Statement (R$ thousand)

3Q11 3Q10

Contracted PSV 5,191,133 3,715,544

Average Commission 2.43% 2.52%

Revenues of Services 125,933 93,736

Discounts and Rebates (2,992) (1,393)

Taxes on Revenues (11,417) (8,101)

Net Revenues 111,524 84,243

Cost of services provided (3,251) (4,596)

Gross Income 108,273 79,647

Operating Costs and Expenses (64,461) (48,775)

Administratives Expenses (54,119) (41,689)

Management Remuneration (3,272) (4,292)

Allowance for doubtful accounts (6,222) (1,153)

Other Operating Revenues (Expenses) (848) (1,641)

EBITDA 43,812 30,872

EBITDA Margin 39.3% 36.6%

Depreciation and Amortization (3,103) (2,185)

Financing Expenses (984) (468)

Present Value Adjustment (11,638/07) - 38

Financing Income 8,967 2,124

Income before taxes 48,692 30,382

Income Tax (9,572) (7,689)

Social contribution Tax (3,501) (2,815)

Minority Interest (2,138) (463)

Net Income for the period 33,481 19,415

Net Margin 30.0% 23.0%

Financial Statement

12


Consolidated Balance Sheet on September 30, 2011 (R$ '000)

ASSET

3Q11 3Q10

Assets

Cash, Cash Equivalents 278,682 65,874

Accounts Receivable 110,537 78,992

Advance from suppliers 333 156

Tax to Recover 16,562 7,934

Loans and other Credits with

Related Parties- -

Prepaid Expenses 5,570 2,906

Other Current Assets 6,394 8,924

Total Current Assets 418,078 164,786

Noncurrent Assets

Long Term Assets

Accounts Receivable 2,911 2,288

Result from disproportionate interest 13 4

Available properties for sales 2,211 2,217

Related parties 661 264

Advance for future Capital Increase - -

Other Credits 3,415 2,287

9,211 7,060

Investments in Controled Companies - -

Property 47,483 38,349

Intagible asset 366,440 314,605

Deferred - -

413,923 352,954

Total Noncurrent Assets 423,134 360,014

Total Assets 841,212 524,800

13


Consolidated Balance Sheet on September 30, 2011 (R$ '000)

3Q11 3Q10

Liabilities

Loans and Financing - 63

Suppliers 6,078 6,275

Wages and Burden Payable 10,215 8,404

Taxes and Contribution Payable 15,326 25,571

Advance from Clients 18,368 2,624

Dividends Payable 209 234

Payable Accounts - Company Acquisition 10,720 -

Loans and other related parties payable 517 392

Usufruct of Results 12 760

Other Accounts Payable 6,402 4,575

Total Current Liabilities 67,847 48,898

Noncurrent Liabilities

Long Term Liabilities

Loans and Financing - -

Provisions for Contingencies 2,261 2,419

Taxes Payable 17,777 -

Payable Accounts - Company Acquisition 51,455 -

Investment Provisions (Losses) - -

Others accounts Payable 85 615

Transactions with minority shareholders - -

Total Non Current Liabilities 71,578 3,034

Minoritary Interest 4,037 1,394

Shareholders' Equity

Subscribed Capital 521,346 344,359

Capital Reserve 42,992 40,348

Statutory Reserve 6,701 -

Profits Reserve 151,223 86,767

Treasury Stock (2,831) -

Equity Adjustment (21,681) -

Total Shareholders Equity 697,750 471,474

Total Liabilities and Shareholders' Equity 841,212 524,800

Liabilities and Shareholders' Equity

14


Consolidated Income Statement (R$ ‘000)

Period from July 1 to September 30, 2011

Consolidated Income Statement

3Q11 3Q10

Revenues of Services 125,933 93,736

Discounts and Rebates (2,992) (1,393)

Taxes on Revenues (11,417) (8,101)

Net Revenues 111,524 84,243

Cost of services provided (3,251) (4,596)

Gross Income 108,273 79,647

Operating Costs and Expenses

Administratives Expenses (60,341) (42,842)

Management Remuneration (3,272) (4,292)

Depreciation and Amortization (3,103) (2,185)

Financing Expenses (984) (430)

Financing Income 8,967 2,124

Other Operating Revenues (Expenses) (848) (1,641)

Equity income - -

(59,581) (49,265)

Income before taxes 48,692 30,382

Income Tax (9,572) (7,689)

Social contribution Tax (3,501) (2,815)

Minority Interest (2,138) (463)

Net Income for the period 33,481 19,415

15


Cash flow (R$ ‘000)

Period from July 30 to September 30, 2011

Cash Flow Statement 3Q11 3Q10

Net Income before Income Tax and Social Contribution from 04/01 to 06/30 48,692 30,382

Adjustments for reconciliation between losses

and net operating revenue

Depreciation 2,783 2,192

Amortization 321 (6)

Investments goodwill amortization - -

Credit Provisions (Losses) 8,966 2,798

Provisions for contingencies - -

Market value adjustment accounts receivable 199 (38)

Market value adjustment accounts payable - -

Long-Term Financial Expenses 8 -

Minority Shareholders Interest (2,138) -

Adjusted Net Income 58,831 35,328

Variation between Assets and Liabilities

Accounts Receivable (19,604) (13,132)

Taxes to recover (1,884) (360)

Accounts Receivable - related parties 69 (10)

Other current assets (744) (2,410)

Advance for future Capital Increase - -

Others Long Term Assets (151) 1,987

Suppliers 994 812

Wages and Burden Payable 1,340 455

Taxes and Contribution to recover (7,541) 1,680

Taxes and Contribution payable - (1)

Advances from Clients (1,654) 927

Payable to related parties 380 (78)

Usufruct of Results (440) -

Other Current Liabilities (1,525) (97)

Others Long Term Liabilities 2,529 601

(28,231) (9,626)

Net Cash Used in Activities 30,600 25,702

From Investment Activities

Share buy back - -

Available properties for sales - -

Investments - -

Dividends Received - (368)

Fixed Assets - -

Intangible Assets - -

Intangible Assets (Payable Company Acquisition) (6,060) (7,764)

Deferred asset (4,286) (309)

Net Cash in Investment Activities (10,346) (8,441)

From Financing Activities with third parties

Loans and financing (4) (22)

Payable company acquisition (6,514) -

Net Cash in Investment Activities with third parties (6,518) (22)

From Financing Activities with Shareholders

Capital increase (1) -

Share issuance expenses (331) -

Capital reserve - premium on sale of shares - -

Minority shareholders 371 124

Interest distribution and advance of dividends (2,061) (10,671)

Net Cash From Financing Activities with Shareholders (2,022) (10,547)

Availability Increase (Losses) 11,714 6,692

Cash and Equivalent in the Beggining of the Period 266,968 70,149

Cash and Equivalent in the end of the period 278,682 76,841

brasil brokers reports 3q11 results · 2015. 12. 14. · brasil brokers reports 3q11 results rio de...

Documents