Homex Reports 1Q13 Earnings Results

                     Homex Reports 1Q13 Earnings Results

PR Newswire

CULIACAN, Mexico, April 25, 2013

CULIACAN, Mexico, April 25, 2013 /PRNewswire/ -- Desarrolladora Homex, S.A.B.
de C.V. ("Homex" or "the Company") [NYSE: HXM, BMV: HOMEX] today announced
financial results for the First Quarter ended March 31, 2013[1].

Financial Highlights

  oTotal revenue for the first quarter of 2013 decreased 46.2 percent to
    Ps.3.3 billion (US$142.6 million) from Ps.6.2 billion (US$216.2 million)
    for the same period in 2012. Housing revenues were Ps.2.2 billion (US$179
    million), a decline of 39.4 percent compared to Ps.3.6 billion (US$294
    million) during the first quarter of 2012 mainly driven by the continued
    slow collection experienced during the recent quarter in the Company's
    Mexico Division. Due to the low level of collections during the quarter,
    Homex's ability to complete homes under construction was also affected,
    impacting its capacity to restore its pipeline of new homes to be
  oIn accordance with IFRS since 4Q12, the Company decided not to consolidate
    results of its penitentiary project located in Chiapas accordingly the
    Company is only recognizing revenues from the Morelos penitentiary
    project. For the quarter, the Company registered revenues of Ps.336.4
    million from the penitentiary project located at Morelos.
  oAs recently announced, the Company has signed an agreement with Grupo
    Financiero Inbursa and Ideal for the sale of its interest in the Federal
    Penitentiaries located at Morelos and Chiapas. After the completion of
    this transaction, the Company will no longer consolidate the Federal
    Penitentiary projects in its financial statements as effectively, both,
    assets and liabilities, associated to the projects will be transferred to
    the acquiring party. No additional capital investment from Homex is
    expected for the completion of the projects.
  oAdjusted earnings before interest, taxes, depreciation and amortization
    (adjusted EBITDA) during the quarter were Ps.599.7 million (US$48.5
    million), a 51.7 percent decrease from the Ps.1.2 billion (US$100.4
    million) during the same period in 2012. Adjusted EBITDA margin for the
    recent quarter was 18.0 percent compared to 20.1 percent during the same
    period of 2012. Adjusted EBITDA margin for housing was 20.2 percent during
    the first quarter of 2013 compared to 24.2 percent during the same period
    of 2012.
  oAs of March 31, 2013, and as a result of the accumulative FX gain of the
    Peso against the US dollar, the Company's changes in financial position
    (which the Company has historically presented as Free Cash Flow), reflect
    the booking of non-cash items. As of March 31, 2013 and on a consolidated
    basis, Homex generated negative FCF of Ps.3.2 billion which was driven by
    the increase in the construction in progress from Mexico's housing
    division and to a lesser extent 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.

[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). First quarter 2013 and 2012 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.12.3546 per US$1.00. First quarter 2013 and 2012 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

                              Thousands U.S 1Q'13                   Chg % and
Thousands of pesos            dollars       Thousands of 1Q'12      bps
                              (Convenience  pesos
Volume (Homes)                5,420         5,420        8,738      -38.0%
Revenues                      $269,578      $3,330,525   $6,187,293 -46.2%
Housing revenues              $179,390      $2,216,287   $3,657,337 -39.4%
Cost                          $213,634      $2,639,363   $4,657,664 -43.3%
 Capitalization of
Comprehensive Financing Costs $25,192       $311,241     $221,570   40.5%
Gross profit                  $55,944       $691,162     $1,529,629 -54.8%
Gross profit adjusted for     $81,136       $1,002,403   $1,751,199 -42.8%
capitalization of CFC
Operating income              $17,393       $214,888     $876,962   -75.5%
Operating income adjusted for $42,586       $526,129     $1,098,532 -52.1%
capitalization of CFC
Interest expense, net (a)     $26,858       $331,821     $337,385   -1.6%
Net income                    $7,681        $94,890      $836,908   -88.7%
Net Income adjusted for FX    $5,882        $72,669      $477,017   -84.8%
Adjusted EBITDA (b)           $48,544       $599,742     $1,241,053 -51.7%
Gross margin                  20.8%         20.8%        24.7%      -397
Gross margin adjusted for     30.1%         30.1%        28.3%      179
capitalization of CFC
Operating margin              6.5%          6.5%         14.2%      -772
Operating margin adjusted for 15.8%         15.8%        17.8%      -196
capitalization of CFC
Adjusted EBITDA margin        18.0%         18.0%        20.1%      -205
Adjusted EBITDA margin        20.2%         20.2%        24.2%      -405
Homebuilding (c)
Net Income margin adjusted    2.2%          2.2%         7.7%       -553
for FX
Earnings per share in Ps.                   0.28         2.50       -88.7%
Earnings per share in Ps.                   0.22         1.43       -84.8%
adjusted for FX
Earnings per ADR presented in 0.14                       1.21       -88.7%
US$ (d)
Earnings per ADR presented in 0.11                       0.69       -84.8%
US$ adjusted for FX
Weighted avg. shares          334.7         334.7        334.7
outstanding (MM)
Accounts receivable days (e)                92           33
Inventory days                              730          668
Inventory (w/o land) days                   528          428
Accounts payable days ( f)                  94           80
Working Capital Cycle (WCC)                 727          621
days (g)

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 first quarter 2013 and 2012.

c) Adjusted EBITDA Margin Homebuilding only considering Mexico Division and
International Division.

d) US$ values estimated using an exchange rate of Ps.12.3546 per US$1.00 as
of March 31, 2013. Common share/ADR ratio: 6:1.

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

f) Due to the Company's decision since 4Q12 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.

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

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

"As we anticipated and shared with you in February during our fourth quarter
and full year 2012 earnings call, the first quarter of the year was expected
to be very challenging, and of course, this has been reflected in our reported
first quarter results and liquidity position. Nonetheless, we feel positive in
relation to our performance during 2013, as we believe our financial position
will show improvement through the resources that we will obtain during the
following months as a result of the sale of the penitentiaries that we just
announced last Friday. From a total of Ps.4.0 billion, Ps.2.0 billion are
intended to be invested in working capital to complete homes under
construction, thus enabling us to generate operating cash flow. We will also
use Ps.2.0 billion to reduce our indebtness level.

Moreover, we are also demonstrating the effectiveness of our strategy to
diversify our operations into other attractive segments, such as
infrastructure in Mexico, a division that we will continue to explore and
expand in the short term future.

At the same time, we will continue to work diligently with authorities,
financial institutions and most importantly, inside the company to
successfully navigate the challenges during this period. We remain confident
in the prospects of the Mexican housing industry, as the National Housing
Plan, which is a six-year plan, denotes the importance of housing in the
country and the large number of Mexican families that continue to drive the
demand for housing and infrastructure. In the short term, the environment will
continue to be challenging, nonetheless we trust in our experience, quality
product offering and our management team to accelerate our operations
throughout the year in our Mexico Division, taking advantage of a stronger
financial position as a result of the monetization of the prisons and the
resources that we will have available to us. We believe that we will be the
first company with the ability to offer new homes as per the dramatic
reduction of new homes offered in the country."

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.


DATE:       Friday, April 26, 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
               andChief Financial Officer
               Vania Fueyo, Investor Relations Officer
DIAL-IN:     International: 706-643-5124
               U.S.: 866- 887-3678
               Passcode: 33087655
               Please call 10 minutes prior to start time and request the
               Homex call

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

Website: http://www.homex.com.mx/ri/index.htm
Contact: INVESTOR CONTACTS, investor.relations@homex.com.mx; Vania Fueyo, Head
of Investor Relations, +5266-7758-5838, vfueyo@homex.com.mx, or Erika
Hernandez, Investor Relations Manager, +5266-7758-5800 ext.5852,
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