Homex Reports 4Q12 and Full Year 2012 Earnings Results

            Homex Reports 4Q12 and Full Year 2012 Earnings Results

Total Revenue Growth of 21.5 Percent for the Fourth Quarter of 2012 and Full
Year 2012 Growth of 30.5 Percent.

PR Newswire

CULIACAN, Mexico, Feb. 26, 2013

CULIACAN, Mexico, Feb. 26, 2013 /PRNewswire/ -- Desarrolladora Homex, S.A.B.
de C.V. ("Homex" or "the Company") [NYSE: HXM, BMV: HOMEX] today announced
financial results for the Fourth Quarter and Full Year ended December 31,
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").

Financial Highlights

  oTotal revenue for the fourth quarter of 2012 increased 21.5 percent to
    Ps.7.9 billion (US$614 million) from Ps.6.6 billion (US$505 million) for
    the same period in 2011. Housing revenues were Ps.5.7 billion (US$439
    million), a decline of 4.4 percent compared to Ps. 5.9 billion (US$459
    million) during the fourth quarter of 2011. 
  oFor the full year 2012, total revenues rose 30.5 percent to Ps.28.5
    billion (US$2.2 billion) from Ps.21.8 billion (US$1.7 billion) in 2011.
    Total housing revenue for the full year 2012 decreased 6.5 percent to
    Ps.18.9 billion (US$1.4 billion) from Ps.20.2 billion (US$1.5 billion)
    during the same period of 2011. The Company's operations during the
    quarter and year were affected by 1) the uneven allocation of subsidies
    between vertical and horizontal home construction, 2) changes in the
    subsidy program affecting pricing dynamics, 3) additional requirements for
    mortgage originations with INFONAVIT and FOVISSSTE, 4) inherent effect
    from the government transition during the last quarter.
  oDuring the quarter, in accordance with IFRS, the Company decided not to
    consolidate results of its penitentiary project located in Chiapas. As a
    result of this decision, during the quarter Homex had a negative
    contribution from penitentiary revenues. In contrast, revenues from
    infrastructure increased significantly to Ps.3.9 billion, as the
    construction services related to the Chiapas Project were recognized in
    this line.
  oFor the year, revenues from Penitentiary Projects were Ps.3.8 billion,
    reflecting the contribution from the Morelos project. During the quarter,
    due to the effects of the government transition, the issuance of
    Certificates of Construction Completion (CAAPS) was delayed affecting the
    Company's ability to draw down on the Banobras loan.
  oAdjusted earnings before interest, taxes, depreciation and amortization
    (adjusted EBITDA) during the quarter was Ps.491.9 million (US$37.9
    million), a 63.3 percent decrease from the Ps.1, 339.1 million (US$103.1
    million) during the same period in 2011. Adjusted EBITDA margin for the
    recent quarter was 6.2 percent compared to 20.4 percent during the same
    period of 2011. The decline in the quarter mainly reflects the accounting
    effect resulting from the Company's decision not to consolidate the
    Chiapas project.
  oAs of December 31, 2012 and on a consolidated basis, Homex generated
    negative FCF of Ps.6.4 billion which was driven by the increase in
    accounts receivable from Mexico's housing division as well as from the
    recognition of the construction in progress (as AR) from the penitentiary
    project of Morelos. Homex FCF without the Federal Penitentiary and
    adjusted for FX was negative at Ps.3.0 billion. On a quarterly basis,
    Homex FCF without the Federal Penitentiaries was negative at Ps.2.4
    billion for the fourth quarter from negative Ps.522 million for the third
    quarter.

FINANCIAL AND OPERATING HIGHLIGHTS                        Twelve-Months
               4Q'12                                      2012
               Thousands                                  Thousands
               U.S. dollars 4Q'12                         U.S. Dollars                         Chg %
Thousands of   (Convenience Thousands             Chg %   (Convenience                         and
pesos          Translation) of pesos   4Q'11      and bps Translation) 2012        2011        bps
Volume (Homes) 13,919       13,919     15,345     -9.3%   46,357       46,357      52,486      -11.7%
Revenues       $614,255     $7,977,950 $6,566,146 21.5%   $2,196,304   $28,525,602 $21,853,279 30.5%
Housing
revenues       $438,830     $5,699,530 $5,961,536 -4.4%   $1,454,333   $18,888,883 $20,209,967 -6.5%
Cost           $575,401     $7,473,302 $5,016,465 49.0%   $1,731,097   $22,483,483 $15,814,910 42.2%

Capitalization
of
Comprehensive
Financing
Costs (CFC)    $31,211      $405,364   $373,514   8.5%    $96,705      $1,256,003  $1,048,918  19.7%
Gross profit   $38,855      $504,647   $1,549,680 -67.4%  $465,208     $6,042,119  $6,038,369  0.1%
Gross profit
adjusted for
capitalization
of CFC         $70,066      $910,011   $1,923,195 -52.7%  $561,913     $7,298,122  $7,087,287  3.0%
Operating
income         -$2,322      -$30,157   $829,573   -103.6% $275,149     $3,573,629  $3,263,440  9.5%
Operating
income
adjusted for
capitalization
of CFC         $28,889      $375,207   $1,203,087 -68.8%  $371,853     $4,829,632  $4,312,358  12.0%
Interest
expense, net
(a)            $34,346      $446,092   $319,785   39.5%   $112,342     $1,459,101  $1,244,543  17.2%
Net income     -$16,005     -$207,874  $55,592    -473.9% $121,881     $1,582,991  $1,079,535  46.6%
Net Income
adjusted for
FX             -$4,646      -$60,337   $153,255   -139.4% $131,880     $1,712,860  $1,644,881  4.1%
Adjusted
EBITDA (b)     $37,872      $491,885   $1,339,092 -63.3%  $404,627     $5,255,292  $4,724,029  11.2%
Gross margin   6.3%         6.3%       23.6%      -1,728  21.2%        21.2%       27.6%       -645
Gross margin
adjusted for
capitalization
of CFC         11.4%        11.4%      29.3%      -1,788  25.6%        25.6%       32.4%       -685
Operating
margin         -0.4%        -0.4%      12.6%      -1,301  12.5%        12.5%       14.9%       -241
Operating
margin
adjusted for
capitalization
of CFC         4.7%         4.7%       18.3%      -1,362  16.9%        16.9%       19.7%       -280
Adjusted
EBITDA margin  6.2%         6.2%       20.4%      -1,423  18.4%        18.4%       21.6%       -319
Net Income
margin
adjusted for
FX             -0.8%        -0.8%      2.3%       -309    6.0%         6.0%        7.5%        -152
Earnings per
share in Ps.                -0.62      0.17                            4.73        3.22
Earnings per
share in Ps.
adjusted for
FX                          -0.18      0.46                            5.12        4.91
Earnings per
ADR presented
in US$ (c)     -0.29                   0.08               2.18                     1.49
Earnings per
ADR presented
in US$
adjusted for
FX             -0.08                   0.21               2.36                     2.27
Weighted avg.
shares
outstanding
(MM)           334.7        334.7      334.7              334.7        334.7       334.7
Accounts
receivable
days (d)                                                               85          36
Inventory days                                                         621         696
Inventory (w/o
land) days                                                             428         440
Accounts
payable days (
e)                                                                     88          98
Working
Capital Cycle
(WCC) days (f)                                                         619         634

a.Including interest expense recognized in Cost of Goods 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, plus
    (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 fourth quarter and
    full year 2012 and 2011.
c.US$ values estimated using an exchange rate of Ps.12.9880 per US$1.00 as
    of December 31, 2012. Common share/ADR ratio: 6:1.
d.Accounts receivable not including receivables from the penitentiary
    construction projects
e.Due to the Company's decision not to consolidate the Chiapas Penitentiary
    Project the Company is also not recognizing the previously recognized
    Account Payable of Ps. 1.1 billion in relation to the acquisition of the
    equity stake at that federal penitentiary, even though the Company still
    has the commitment to acquire it. Previous periods are comparable as this
    payment has been excluded from the WCC calculations.
f.WCC computation based on LTM COGS under IFRS and not including COGS and
    revenues from the penitentiary construction projects.

Commenting on fourth quarter and full year results, Gerardo de Nicolas, Chief
Executive Officer of Homex, said:

"The year 2012 was challenging and the last quarter was no exception.
Throughout the year, we faced a number of challenges which are a reflection of
the continuing evolution of the housing industry in Mexico into one that is
more supportive of better planned communities that provide for a better
quality of life for Mexican families. We are happy to be an integral part of
this positive transition, despite its initial negative financial effect, as we
are convinced that this is the right path for long term positive performance
of the housing industry in Mexico and we are confident that, at Homex, we have
made the right decisions to ensure a profitable long-term future focused on
positive Free Cash Flow generation.

We are also confident that the new Federal Government administration will
continue to be supportive of the housing industry as demonstrated by the
National Housing Policy recently announced, which we anticipate will provide
greater support to higher density projects, which is a competitive strength
for Homex and accordingly, an area in which we will continue to be a key
player.

In regard to our Infrastructure Division and Prison Projects, we remain
confident that both will be a key long- term asset for Homex that will provide
significant added value to our business strategy. Today, we already have new
contracts to execute construction works in addition to the Federal
Penitentiaries. This also adds strategic value and business line
diversification for Homex, and contributes to the Company's positive long-term
outlook.

Overall, despite the lower than anticipated results, I am confident about
Homex and our future, and that we will continue working to deliver positive
results in each of our Four Divisions."

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.

DESARROLLADORA HOMEX, S.A.B de C.V.
FOURTH QUARTER 2012 RESULTS
CONFERENCE CALL NOTICE
DATE:    Wednesday, February 27, 2013
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: 93193158
         Please call 10 minutes prior to start time and request the Homex
         call

[1] Unless otherwise noted, all monetary figures in the tables are presented
in thousands of Mexican pesos and in accordance with International Financial
Reporting Standards (IFRS). Fourth quarter and Full Year 2012 and 2011
figures are presented without recognizing the effects of inflation per the
application of IAS-29 "Effects of inflation." The symbols "Ps." and "$" refer
to Mexican pesos and "US$" refers to U.S. dollars. U.S. dollar figures in this
release are presented only for the convenience of the reader and are
estimated, using an exchange rate of Ps.12.9880 per US$1.00. Fourth quarter
and Full Year 2012 and 2011 financial information is unaudited and subject to
adjustments.

Percentage of change expressed in basis points are provided for the
convenience of the reader. Basis points figures may not match, due to
rounding.

INVESTOR CONTACTS
investor.relations@homex.com.mx

Vania Fueyo
Head of Investor Relations
+5266-7758-5838
vfueyo@homex.com.mx
Erika Hernandez
Investor Relations Manager
+5266-7758-5800 ext.5852
erika.hernandez@homex.com.mx

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

Website: http://www.homex.com.mx/ri/index.htm