Unassociated Document
FORM 6-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934


For the month of March, 2008

Commission File Number: 001-33356

Gafisa S.A.
(Translation of registrant’s name into English)

Av. Nações Unidas No. 4777, 9th floor
São Paulo, SP, 05477-000
Federative Republic of Brazil
(Address of principal executive office)
 
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
 
Form 20-F
x
 
Form 40-F
o
 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
 
Yes
o
 
No
x
 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
 
Yes
o
 
No
x
 

Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
 
Yes
o
 
No
x
 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A
 
 
Gafisa Reports Results for 2007 Full Year and Fourth Quarter
--- Full Year Adjusted Net income Rose 89% on 77% Gain in Net Revenues ---
--- Full Year Launches Increase 122% to R$2.2 Billion; Pre-sales Increase 63% to R$1.6 billion ---
--- Company Posts 15.7% Adjusted EBITDA Margin for 2007 and Provides 2008 EBITDA Margin Guidance ---
--- Land Bank Reaches R$10.2 Billion ---


São Paulo, March 4, 2008 - Gafisa S.A. (Bovespa: GFSA3; NYSE: GFA), Brazil’s leading diversified national homebuilder, today reported financial results for full year and fourth quarter ended December 31, 2007. The financial statements were prepared and presented in accordance with Brazilian GAAP (BR GAAP) and in Brazilian Reais (R$). Additionally, financial statements and operating information consolidate the numbers for Gafisa and its subsidiaries, and refer to Gafisa’s stake (or participation) in its developments. To view a more detailed review of fourth quarter results filed with the Brazilian Comissão de Valores Mobiliários (“CVM”), please visit Gafisa’s website www.gafisa.com.br/ir.
 
Full Year Results

Net operating revenue for the full year 2007, recognized by the Percentage of Completion (“PoC”) method, rose 77% to R$1,172 million from R$664 million in 2006. Pre-sales for the year remained strong, growing by 63% to R$1.6 billion from R$995 million.
 
Project launches in 2007 totaled R$2.2 billion, an increase of 122% from R$1.0 billion in 2006. Approximately 46% of the launches for the year took place in the fourth quarter. Fit Residencial and Bairro Novo also launched their first developments during 2007 and accounted for 13% of the total launches.
 
The Company’s land bank totaled R$10.2 billion at the end of the year and consists of 136 different sites totaling approximately 19.2 million meters. Reflecting the Company’s strategy of servicing all segments and geographies of the homebuyer market, 42% of the consolidated land bank was outside the states of Rio de Janeiro and São Paulo.

EBITDA, adjusted for public offering expenses, increased 87% to R$183.8 million in 2007 and adjusted EBITDA margin improved to 15.7%. Net Income was R$113.6 million, an increase of 146.7% while Net Income adjusted for public offering expenses totaled R$143.8 million, up 89% from R$76.0 million in 2006.

Gafisa adopts one of the most conservative accounting standards in the industry. Starting in the fourth quarter, the Company began to capitalize the interest cost from corporate debt and recognize it on a percentage of completion basis. As a result, Gafisa now accounts for interest expense on the COGS line of its income statement which impacts gross margin.

Selling, general and administrative (SG&A) expenses were R$192.4 in 2007 versus R$103.8 in 2006. G&A represented R$113.1 million in 2007 of the total amount, up from R$52.1 million in 2006. This increase in G&A primarily reflects the Company’s consolidation of AlphaVille and the ramp-up of operations at Fit and Bairro Novo.

Fourth Quarter Results

Net operating revenue for the quarter, recognized by the PoC method, was R$372.8 million, an increase of 56% from R$238.3 million during the fourth quarter of 2006. Backlog of Results to be recognized under the PoC method at the end of the fourth quarter totaled R$583 million, up 96% from R$298 million in the previous year. Backlog margin to be recognized reached 38.2%.
 
Project launches for the fourth quarter were up 176% from R$374.8 million in the same period last year to R$1.0 billion.
 
Fourth quarter EBITDA rose 101% to 61.3 million from R$30.5 in the previous year’s quarter. EBITDA margin improved to 16.5%. Net Income was R$63.1 million in 4Q07, versus R$14.8 million in the fourth quarter of 2006.
 
Commenting on results, Wilson Amaral, chief executive officer of Gafisa S.A. said, “Through our disciplined and professional approach, Gafisa delivered strong results in 2007, expanded its reach both geographically and across socioeconomic segments, as well as built a strategic platform to support future growth initiatives. Gafisa, AlphaVille, Fit Residencial and Bairro Novo are all substantially established with dedicated teams specializing in meeting the needs of the specific socioeconomic segments they serve within 40 cities across Brazil.”
 

“As one of the most geographically diversified homebuilder, offering products for every socioeconomic segment, we are well-positioned to remain an innovator and leader in the marketplace. Our land bank has reached R$10.2 billion encompassing 136 different sites. Pre-sales, a strong indicator of Gafisa’s ability to deliver the appropriate product to consumers, grew 63%, reaching R$1.6 billion in 2007 while launches increased to R$2.2 billion, representing growth of 122% compared to the prior year. Based on our current market outlook, we now expect to execute R$3 billion in launches for 2008, a 34% increase over 2007. Our EBITDA margin for the year reached 15.7%, which we now anticipate will grow to between 16% and 17% by the end of 2008.”

Commenting on the outlook for growth in the industry, Amaral said, “Looking ahead, the outlook for continued growth in the Brazilian residential housing industry remains strong for years to come. With a current housing deficit of almost 8 million homes and the need for around two million new units per year, the demand for housing is as robust as ever. And, while over R$25.31 billion in housing credit was granted during 2007, the demand for housing continues to far exceed the growth in available credit. We made important strides throughout the year in partnering with the public and private banking industry to innovate and accelerate access to credit for all socioeconomic groups while also creating a model that improved our own working capital structure. Going forward we will continue to make it a priority to work hand in hand with the banking sector to increase access to mortgages and address the vast demand for financing particularly in the lower income sectors of the market.

“Responding to the demand for housing in the lower income segments, I was pleased that we could announce the launch of our first Bairro Novo development in December, months ahead of its planned schedule. Additionally, Fit Residencial has launched ten developments since its establishment at the end of March, and we are seeing strong consumer acceptance. Fit has already developed the five prototypes for future projects and has substantially completed building out its corporate infrastructure.

“Finally, the strong demand for our shares this past year has resulted in Gafisa’s inclusion on the Bovespa Index (Ibovespa) and the IBrX-50, as well as the MSCI Emerging Markets Index. We also strengthened our commitment to transparency and excellence in corporate governance, and we have a majority of independent directors on the board. Gafisa is well-positioned to address the rapidly expanding Brazilian housing market. The initiatives we established in 2007 will enable us to deliver strong business results long into the future while increasing returns to our shareholders. ”

Outlook

For 2008, Gafisa reiterates its launch guidance of R$3 billion by the end of 2008 for its share of consolidated launches. Approximately R$2 billion is expected to come from Gafisa, R$300 million from AlphaVille and R$700 million from Bairro Novo and Fit Residencial.
Based on the current market outlook, the Company expects the EBITDA margin to be between 16% and 17% for the full year 2008.

Conference Call
The management of Gafisa will host a conference call in English on Wednesday, March 5, 2008, at 10:00 a.m. US EST/12:00 p.m. Brasilia time. To access the call, dial +1 (973) 935-8893 and enter the code # 34871359. A replay of the conference call will be available until March 12 2008. To access the replay, dial above mentioned numbers. A live webcast of the conference call will be available on the internet at www.gafisa.com.br/ir.

1 Source: ABECIP, Central Bank of Brazil, CEF and FGV.
 

About Gafisa
We are one of Brazil’s leading diversified national homebuilders. Over the last 50 years, we have been recognized as one of the foremost professionally-managed homebuilders, having completed and sold more than 900 developments and constructed almost 40 million square meters of housing, which we believe is more than any other residential development company in Brazil. We believe “Gafisa” is one of the best-known brands in the real estate development market, enjoying a reputation among potential homebuyers, brokers, lenders, landowners, and competitors for quality, consistency, and professionalism.
 
This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Gafisa. These are merely projections and, as such, are based exclusively on the expectations of management concerning the future of the business and its continued access to capital to fund the Company’s business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors; therefore, they are subject to change without prior notice.
 

Investor Relations:        
Duilio Calciolari
CFO and IR Officer
Phone: +55 11 3025-9297
Email: ir@gafisa.com.br
Website: www.gafisa.com.br/ir
 
Media Relations (US - Europe)
Eileen Boyce
Reputation Partners
Phone: +011 312 222 9126
Fax: +011 312 222 9755
E-mail: eileen@reputationpartners.com

Media Relations (Brazil)    
Joana Santos      
Maquina da Noticia     
Phone: +55 11 3147-7900     
Fax: +55 11 3147-7900 
Email: joana.santos@maquina.inf.br
 

Consolidated Statements of Income
                                   
R$ 000
  
4Q07
  
4Q06
  
3Q07
  
4Q07 x 4Q06
  
4Q07 x 3Q07
  
Gross Operating Revenue
                      
Real State development and sales
    
366,678
    
250,112
    
309,373
    
46.6
%
  
18.5
%
Construction and services rendered 14,766
    
2,444
    
11,414
    
504.1
%
  
29.4
%
      
                                 
Deductions
    
(8,689
)
  
(14,269
)
  
(12,232
)
  
-39.1
%
  
-29.0
%
                                      
Net Operating Revenue
    
372,755
    
238,287
    
308,555
    
56.4
%
  
20.8
%
                                 
Operating Costs
    
(238,269
)
  
(170,931
)
  
(215,822
)
  
39.4
%
  
10.4
%
                                      
Gross profit
    
134,486
    
67,356
    
92,733
    
99.7
%
  
45.0
%
                                 
Operating Expenses
                                
Selling expenses
    
(31,101
)
  
(16,085
)
  
(18,941
)
  
93.4
%
  
64.2
%
General and administrative expenses
    
(38,753
)
  
(22,533
)
  
(28,173
)
  
72.0
%
  
37.6
%
Equity Income
    
-
    
-
    
-
    
-
    
-
  
Other Operating Revenues
    
(3,304
)
  
1,783
    
2,230
    
-285.4
%
  
-248.2
%
                                      
EBITDA
    
61,328
    
30,521
    
47,849
    
100.9
%
  
28.2
%
                                 
Depreciation and Amortization
    
(2,259
)
  
(1,651
)
  
(1,986
)
  
36.9
%
  
13.7
%
                                      
EBIT
    
59,069
    
28,870
    
45,863
    
104.6
%
  
28.8
%
                                 
Financial Income
    
20,186
    
12,267
    
11,543
    
64.6
%
  
74.9
%
Financial Expenses
    
9,016
    
(23,036
)
  
(14,959
)
  
-139.1
%
  
-160.3
%
                                      
Income before taxes on income
    
88,271
    
18,100
    
42,447
    
387.7
%
  
108.0
%
                                 
Deffered Taxes
    
(16,137
)
  
(1,703
)
  
(1,987
)
  
847.7
%
  
712.1
%
Income tax and social contribution
    
(6,865
)
  
(1,600
)
  
(6,744
)
  
329.0
%
  
1.8
%
                                      
Income after taxes on income
    
65,269
    
14,797
    
33,716
    
341.1
%
  
93.6
%
                                 
Minority Shareholders
    
(2,189
)
  
-
    
(2,777
)
  
-
    
-21.8
%
                                      
Net income
    
63,080
    
14,797
    
30,939
    
326.3
%
  
103.9
%
Adjusted net income per thousand shares outstanding
    
0.49
    
0.14
    
0.24
    
240.8
%
  
103.3
%
 

Consolidated Statements of Income
                       
R$ 000
  
2007
  
2006
  
2007 x 2006
  
Gross Operating Revenue
              
Real State development and sales
    
1,182,571
    
675,999
    
74.9
%
Construction and services rendered
    
35,121
    
21,480
    
63.5
%
                     
Deductions
    
(45,518
)
  
(33,632
)
  
35.3
%
                         
Net Operating Revenue
    
1,172,174
    
663,847
    
76.6
%
                     
Operating Costs
    
(796,914
)
  
(465,795
)
  
71.1
%
                           
Gross profit
    
375,260
    
198,052
    
89.5
%
                     
Operating Expenses
                    
Selling expenses
    
(79,378
)
  
(51,670
)
  
53.6
%
General and administrative expenses
    
(113,054
)
  
(52,121
)
  
116.9
%
Equity Income
    
-
    
-
    
-
  
Other Operating Revenues
    
973
    
3,958
    
-75.4
%
                                 
EBITDA
    
183,801
    
98,219
    
87.1
%
                     
Depreciation and Amortization
    
(14,823
)
  
(4,302
)
  
244.6
%
Extraordinary expenses
    
(30,174
)
  
(29,894
)
  
0.9
%
                           
EBIT
    
138,804
    
64,023
    
116.8
%
                     
Financial Income
    
49,446
    
52,989
    
-6.7
%
Financial Expenses
    
(35,291
)
  
(64,932
)
  
-45.6
%
                           
Income before taxes on income
    
152,959
    
52,080
    
193.7
%
                     
Deffered Taxes
    
(18,729
)
  
(1,393
)
  
1244.5
%
Income tax and social contribution
    
(12,217
)
  
(4,631
)
  
163.8
%
                           
Income after taxes on income
    
122,013
    
46,056
    
164.9
%
                     
Minority Shareholders
    
(8,410
)
  
-
    
-
  
                     
Net income
    
113,603
    
46,056
    
146.7
%
Adjusted net income per thousand shares outstanding
    
1.15
    
0.76
    
51.1
%


Consolidated Balance Sheet
                              
R$ 000
  
4Q07
  
4Q06
  
3Q07
  
4Q07 x 4Q06
  
4Q07 x 3Q07
  
ASSETS
                      
Current assets
                      
Cash and banks
    
79,590
    
45,231
    
30,454
    
76.0
%
  
161.3
%
Financial investments
    
434,857
    
220,928
    
341,638
    
96.8
%
  
27.3
%
Receivables from clients
    
524,818
    
365,741
    
485,989
    
43.5
%
  
8.0
%
Properties for sale
    
774,908
    
377,576
    
666,150
    
105.2
%
  
16.3
%
Other accounts receivable
    
101,920
    
111,600
    
119,062
    
-8.7
%
  
-14.4
%
Deferred selling expenses
    
37,023
    
17,032
    
29,136
    
117.4
%
  
27.1
%
Prepaid expenses
    
8,824
    
5,446
    
7,921
    
62.0
%
  
11.4
%
     
1,961,940
    
1,143,554
    
1,680,350
    
71.6
%
  
16.8
%
Long-term assets
                                
Receivables from clients
    
497,933
    
194,097
    
384,934
    
156.5
%
  
29.4
%
Properties for sale
    
149,403
    
63,413
    
42,965
    
135.6
%
  
247.7
%
Deferred taxes
    
61,322
    
53,134
    
77,316
    
15.4
%
  
-20.7
%
Other
    
42,797
    
29,329
    
42,738
    
45.9
%
  
0.1
%
     
751,455
    
339,973
    
574,953
    
121.0
%
  
37.1
%
Permanent assets
                                
Investments
    
209,689
    
2,544
    
167,574
    
8142.5
%
  
25.1
%
Properties and equipment
    
27,409
    
8,146
    
21,396
    
236.5
%
  
28.1
%
     
237,098
    
10,690
    
188,970
    
2117.9
%
  
25.5
%
                                           
Total assets
    
2,950,493
    
1,494,217
    
2,417,273
    
97.5
%
  
22.1
%
                                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                                
Current liabilities
                                
Loans and financings
    
59,526
    
17,305
    
31,731
    
244.0
%
  
87.6
%
Debentures
    
9,190
    
11,038
    
2,043
    
-16.7
%
  
349.8
%
Real estate development obligations
    
-
    
6,733
    
4,168
    
-
    
-
  
Obligations for purchase of land
    
163,034
    
120,239
    
166,286
    
35.6
%
  
-2.0
%
Materials and service suppliers
    
86,709
    
26,683
    
78,655
    
225.0
%
  
10.2
%
Taxes and contributions
    
70,293
    
41,574
    
67,860
    
69.1
%
  
3.6
%
Taxes, payroll charges and profit sharing
    
38,512
    
18,089
    
29,929
    
112.9
%
  
28.7
%
Advances from clients -real state and services
    
47,662
    
76,146
    
29,504
    
-37.4
%
  
61.5
%
Dividends
    
26,981
    
11,025
    
-
    
144.7
%
  
-
  
Other
    
75,489
    
11,912
    
17,036
    
533.7
%
  
343.1
%
     
577,396
    
340,744
    
427,212
    
69.5
%
  
35.2
%
Long-term liabilities
                                
Loans and financings
    
380,640
    
27,100
    
102,773
    
1304.6
%
  
270.4
%
Debentures
    
240,000
    
240,000
    
240,000
              
Obligations for purchase of land
    
73,207
    
6,184
    
28,600
    
1083.8
%
  
156.0
%
Deferred taxes
    
63,268
    
32,259
    
62,407
    
96.1
%
  
1.4
%
Unearned income from property sales
    
-
    
2,439
    
637
    
-
    
-30.1
%
Other
    
35,733
    
29,107
    
48,129
    
22.9
%
  
-26.6
%
     
792,888
    
337,089
    
482,546
    
135.2
%
  
64.3
%
Deferred income
                                
Deferred income on acquisition of subsidiary
    
32,223
    
2,297
    
-
    
1,308.8
%
  
-
  
                                 
Minority Shareholders
    
17,223
    
-
    
14,154
    
-
    
21.7
%
                                 
Shareholders' equity
                                
Capital
    
1,221,846
    
591,742
    
1,220,542
    
106.5
%
  
0.1
%
Treasury shares
    
(18,050
)
  
(47,026
)
  
(18,050
)
  
-61.6
%
      
Capital reserves
    
167,276
    
167,276
    
167,276
    
-
    
-
  
Revenue reserves
    
159,691
    
102,095
    
123,593
    
56.4
%
  
29.2
%
     
1,530,763
    
814,087
    
1,493,361
    
88.0
%
  
2.5
%
Total liabilities and shareholders' equity
    
2,950,493
    
1,494,217
    
2,417,273
    
97.5
%
  
22.1
%