Homex Reports Significant Sales and Earnings Increases in 3Q12

        Homex Reports Significant Sales and Earnings Increases in 3Q12

Total Revenues Increased 31.4 % and Mexican Housing Revenues Increased 17.6 %
Q-O-Q: Adjusted EBITDA Gains 34.4 %; Quarterly Positive Free Cash Flow, Net of
Penitentiary Project Payments and FX, Ps.361 million or US$ 28 million

PR Newswire

CULIACAN, Mexico, Oct. 23, 2012

CULIACAN, Mexico, Oct. 23, 2012 /PRNewswire/ -- Desarrolladora Homex, S.A.B.
de C.V. ("Homex" or "the Company") [NYSE: HXM, BMV: HOMEX] today announced
financial results for the Third Quarter ended September 30, 2012[1]

Pursuant to Article 78 of the General Provisions Applicable to Securities
Issuers and Other Participants in the Securities Market (Disposiciones de
Caracter General Aplicables a las Emisoras de Valores y a Otros Participantes
del Mercado de Valores), beginning in 2012, the Company has adopted IFRS as
issued by the International Accounting Standards Boards ("IASB"). Please refer
to page 18 for a detailed description of the transition.

Financial Highlights

  oTotal revenue for the third quarter of 2012 increased 31.4 percent to
    Ps.7.5 billion (US$583 million) from Ps.5.7 billion (US$443 million) for
    the same period in 2011. During the third quarter, the Company recognized
    Ps.2.0 billion (US$159 million) of revenues from its penitentiary
    construction projects with the federal government. Mexico housing revenues
    were Ps.5.1 billion, up 17.6 percent when compared to Ps.4.4 billion
    registered during the second quarter of 2012.
  oAdjusted earnings before interest, taxes, depreciation and amortization
    (adjusted EBITDA) during the quarter was Ps.1,759 million (US$137
    million), a 34.4 percent increase from the Ps.1,309 million (US$102
    million) reported in the third quarter of 2011. Adjusted EBITDA margin
    increased 53 basis points to 23.5 percent in the third quarter of 2012
    from 23.0 percent in the third quarter of 2011.
  oNet income (adjusted for non-cash, foreign exchange (FX) effects) for the
    third quarter of 2012 was Ps.577 million (US$45 million) reflecting a 7.7
    percent margin in the third quarter of 2012 compared to Ps.559 million
    (US$44 million) and a margin of 9.8 percent reported in the same period
    in 2011. Earnings per Share adjusted for non-cash foreign exchange (FX)
    effects during the third quarter of 2012 increased 3.1 percent to Ps.1.72
    compared to Ps.1.67 during the third quarter of 2011. 
  oAverage selling price for all homes in Mexico during the third quarter of
    2012 increased by 3.7 percent to Ps.409 thousand when compared to Ps.394
    thousand during the same period a year ago. Home prices in Brazil
    increased by 16.7 percent to Ps.646 thousand as of the third quarter of
    2012 from Ps.553 thousand during the third quarter of 2011.
  oAs of September 30, 2012, on a consolidated basis and including the
    penitentiary construction projects, Homex generated a negative free cash
    flow of Ps.5.3 billion (US$409 million) primarily because construction
    in progress at these projects is required by IFRS to be recognized as
    accounts receivable. Homex' free cash flow (FCF) generation without
    including the penitentiary projects and adjusted for non-cash items and
    the recognition of the partnership acquisition from one of the
    penitentiary projects was negative at Ps.522 million (US$41 million). On a
    quarterly basis, Homex generated positive FCF of Ps. 361 million( US$28
    million), from a negative balance of Ps.883 million (US$69 million)
    registered on June 30, 2012.

FINANCIAL AND
OPERATING
HIGHLIGHTS                                               NINE MONTHS
               3Q'12                                     2012
               Thousands                                 Thousands
               U.S dollars  3Q'12                 Chg %  U.S Dollars                          Chg %
Thousands of   (Convenience Thousands             and    (Convenience                         and
pesos          Translation) of pesos   3Q'11      bps    Translation) 2012        2011        bps
Volume (Homes) 12,546       12,546     13,271     -5.5%  32,438       32,438      37,141      -12.7%
Revenues       $582,586     $7,487,452 $5,699,098 31.4%  $1,598,778   $20,547,652 $15,287,133 34.4%
Housing
revenues       $399,628     $5,136,056 $5,269,621 -2.5%  $1,026,241   $13,189,353 $14,248,430 -7.4%
Cost           $436,420     $5,608,910 $4,064,707 38.0%  $1,167,917   $15,010,181 $10,798,445 39.0%

Capitalization
of
Comprehensive
Financing
Costs (CFC)    $27,940      $359,092   $247,300   45.2%  $66,187      $850,639    $675,404    25.9%
Gross profit   $146,166     $1,878,542 $1,634,391 14.9%  $430,861     $5,537,472  $4,488,689  23.4%
Gross profit
adjusted for
capitalization
of CFC         $174,106     $2,237,633 $1,881,690 18.9%  $497,048     $6,388,110  $5,164,093  23.7%
Operating
income         $100,977     $1,297,770 $947,227   37.0%  $280,404     $3,603,787  $2,433,867  48.1%
Operating
income
adjusted for
capitalization
of CFC         $128,918     $1,656,862 $1,194,527 38.7%  $346,591     $4,454,425  $3,109,271  43.3%
Interest
expense, net
(a)            $25,168      $323,460   $355,631   -9.0%  $77,246      $992,772    $924,759    7.4%
Net income     $38,480      $494,555   $180,382   174.2% $139,344     $1,790,864  $1,023,943  74.9%
Net Income
adjusted for
FX             $44,890      $576,927   $559,409   3.1%   $137,969     $1,773,197  $1,419,386  24.9%
Adjusted
EBITDA (b)     $136,877     $1,759,162 $1,308,764 34.4%  $370,633     $4,763,407  $3,384,936  40.7%
                                                  -                                         -  
                                                                                             
                                                                                             
Gross margin   25.1%        25.1%      28.7%       359 26.9%        26.9%       29.4%        241
Gross margin                                      -                                         -  
adjusted for                                                                                 
capitalization                                                                               
of CFC         29.9%        29.9%      33.0%       313 31.1%        31.1%       33.8%        269
Operating
margin         17.3%        17.3%      16.6%      71     17.5%        17.5%       15.9%       162
Operating
margin
adjusted for
capitalization
of CFC         22.1%        22.1%      21.0%      117    21.7%        21.7%       20.3%       134
Adjusted
EBITDA margin  23.5%        23.5%      23.0%      53     23.2%        23.2%       22.1%       104
                                                                                              -  
Net Income                                        -                                           
margin                                                                                       
adjusted for                                                                                
FX             7.7%         7.7%       9.8%        211 8.6%         8.6%        9.3%        66
Earnings per
share in Ps.                1.48       0.54                           5.35        3.06
Earnings per
share in Ps.
adjusted for
FX                          1.72       1.67                           5.30        4.24
Earnings per
ADR presented
in US$ (c)     0.69                    0.25              2.50                     1.43
Earnings per
ADR presented
in US$
adjusted for
FX             0.80                    0.78              2.47                     1.98
Weighted avg.
shares
outstanding
(MM)           334.7        334.7      334.7             334.7        334.7       334.7
Accounts
receivable
days (d)                                                              62          32
Housing
Accounts
receivable
days                                                                  42          22
Inventory days                                                        775         737
Accounts
payable days (
e)                                                                    126         113
Working
Capital Cycle
(WCC) days (f)                                                        711         656

a.) Including interest expense recognized in Cost of Good Sold ( COGS ) and
Comprehensive Financing Costs (CFC); not including interest expense from the
penitentiary construction projects.

b.) Adjusted EBITDA is not a financial measure computed under IFRS.Adjusted
EBITDA as derived from IFRS financial information means net income, excluding
(i)depreciation and amortization; (ii)net comprehensive financing costs
("CFC") (comprised of net interest expense (income), foreign exchange gain or
loss, including CFC, capitalized to land balances, that is subsequently
charged to cost of sales and (iii)income tax expense and employee statutory
profit-sharing expense. See "Adjusted EBITDA" for a reconciliation of net
income to Adjusted EBITDA for the third quarter and nine-months accumulated of
2012 and 2011.

c.) US$ values estimated using an exchange rate of Ps.12.8521 per US$1.00 as
of September 30, 2012. Common share/ADR ratio: 6:1.

d.) Accounts receivable not including receivables from the penitentiary
construction projects.

e.) Accounts payable not including payables related to the penitentiary
construction projects.

f.) WCC computation based on LTM COGS under IFRS and not including COGS and
revenues from the penitentiary construction projects.

Commenting on third quarter results, Gerardo de Nicolas, Chief Executive
Officer of Homex, said:

"During the third quarter of 2012, we saw an important improvement at our
Mexican operations, as we started to witness a more accelerated rhythm of
collections, leaving behind the administrative delays that we faced during the
first half of the year in relation to the Registro Unico de Vivienda (RUV) and
compliance with the new sustainability regulations among other requirements
that were integrated into the mortgage approval process, principally with
INFONAVIT. During the quarter, in México, we titled 12,517 homes, an increase
of 13.1 percent when compared to the 11,070 units that we titled during the
second quarter of 2012. This quarterly positive result gives us confidence in
our ability to meet our 2012 adjusted guidance for Mexico."

"At our infrastructure division, on an accumulated basis as of September 30,
2012, we have recognized Ps.6.0 billion, which represents an advance of
approximately 68 percent of completion of these projects. The delivery of both
projects is on target and still scheduled for the fourth quarter of this year,
as technology, equipment and finishing will be installed during this last
stage of construction."

"In Brazil, we continue to face a challenging environment mainly in relation
to the administrative procedures with notary publics. As a result of this, we
have continued to reduce our investments in construction in progress,
resulting in a lower level of operations, but importantly also reducing our
rate of investment in the country."

"As a result of a recovery from the administrative delays that we faced during
the first half of the year in Mexico, and based on our third quarter
performance and continued cost containment efforts, we do expect a strong
fourth quarter, and we remain confident that we have made the right strategic
decisions to meet our revenue growth, EBITDA and Cash Flow Guidance," he
concluded.

Detailed Financial Reports

The Company produces a detailed earnings report that provides information
regarding Operating and Financial results. This detailed information is
considered part of this earnings announcement and is available in full with
this earnings release via the Company's website at
http://www.homex.com.mx/ri/index.htm through email distribution or the
Company's filings with the SEC and the CNBV.

THIRD QUARTER 2012 RESULTS CONFERENCE CALL NOTICE

DATE:    Wednesday, October 24, 2012
TIME:    9:00 AM Central Time (Mexico City)
         10:00 AM Eastern Time (New York)
HOSTS:   Gerardo de Nicolas, Chief Executive Officer
         Carlos Moctezuma, Vice President of Finance and Planning and Chief
         Financial Officer
         Vania Fueyo, Investor Relations Officer
DIAL-IN: International: 706-643-5124
         U.S.: 866- 887-3678
         Passcode: 36839601
         Please call 10 minutes prior to start time and request the Homex
         call

INVESTOR CONTACTS
investor.relations@homex.com.mx

Vania Fueyo
Head of Investor Relations
+5266-7758-5838
vfueyo@homex.com.mx
Ernesto Victoria
Investor Relations Manager
+5266-7758-5800 ext.5852
ernesto.victoria@homex.com.mx

SOURCE Desarrolladora Homex, S.A. de C.V.

Website: http://www.homex.com.mx