Homex Reports 2Q13 Earnings Results
CULIACAN, Mexico, July 26, 2013
CULIACAN, Mexico, July 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 Second Quarter ended June 30, 2013^^.
Financial and Operating Highlights
oTotal revenue for the second quarter of 2013 decreased 84.4 percent to
Ps.1.1 billion (US$85.6 million) from Ps.7.1 billion (US$548.6 million)
for the same period in 2012. Housing revenues were Ps.290.4 million
(US$22.3 million), a decline of 93.4 percent compared to Ps.4.4 billion
(US$337.5 million) during the second quarter of 2012.
oDuring the quarter the Company recognized revenues of Ps.800.9 million
(US$61.5 million) in relation to building service contracts with state and
the federal government compared to Ps.1.6 billion (US$127.5 million)
during the year ago period.
oDuring the quarter, the Company effectively closed the transaction with
IDEAL to sell Homex's interest in the penitentiaries projects for
approximately Ps.4.5 billion generating an income of Ps.989.4 million
which was registered as other income in the P&L.
oThe Company recognized a charge of Ps.5.3 billion in Costs of Good Sold
(COGS) for land and construction-in-progress inventory as per the initial
viability analysis performed on the Company's housing projects and land
inventory according to the recently published rules for subsidy
application from SEDATU.
oFor the quarter, the Company created a Ps.2.1 billion provision registered
in Selling General and Administrative Expenses (SG&A) for uncollectable
accounts receivable outstanding for more than 160 days from clients that
lost their eligibility for subsidies or deteriorated their credit status,
making collection of those receivables uncertain.
oAs per the cancellation of currency hedges in relation to Homex's Senior
Notes due 2019 and 2020, the Company registered a loss of Ps.1.2 billion
in Net Comprehensive Financing Cost.
oFor the six-months accumulated period, as of June 30, 2013, Homex
generated a consolidated negative Free Cash Flow (FCF) of Ps.3.3 billion
which was mainly driven by the negative free cash flow of Ps.7.5 billion
without the penitentiaries projects mainly driven by the Company's
six-months accumulated negative net income.
FINANCIAL AND OPERATING HIGHLIGHTS Six-months
Thousands 2Q'13 Thousands
Thousands of U.S Thousands of 2Q'12 Chg % U.S 2013 2012 Chg %
pesos dollars pesos and bps Dollars and bps
Volume (Homes) 710 710 11,154 -93.6% 6,130 6,130 19,892 -69.2%
Revenues $85,564 $1,114,341 $7,144,214 -84.4% $341,296 $4,444,866 $13,331,507 -66.7%
Housing $22,297 $290,380 $4,395,960 -93.4% $192,473 $2,506,666 $8,053,297 -68.9%
Cost $825,758 $10,754,255 $5,065,424 112.3% $1,028,419 $13,393,618 $9,723,088 37.8%
Comprehensive $64,153 $835,498 $269,977 209.5% $88,052 $1,146,739 $491,547 133.3%
Gross profit -$740,194 -$9,639,914 $2,078,790 -563.7% -$687,123 -$8,948,752 $3,608,419 -348.0%
adjusted for -$676,041 -$8,804,416 $2,348,767 -474.9% -$599,072 -$7,802,013 $4,099,966 -290.3%
Operating -$927,058 -$12,073,539 $1,384,683 -971.9% -$910,558 -$11,858,651 $2,261,645 -624.3%
adjusted for -$862,905 -$11,238,041 $1,654,660 -779.2% -$822,506 -$10,711,912 $2,753,192 -489.1%
expense, net $76,695 $998,844 $331,928 200.9% $102,174 $1,330,665 $669,313 98.8%
Net income -$779,395 -$10,150,452 $567,957 -1887.2% -$772,109 -$10,055,562 $1,404,865 -815.8%
Adjusted -$773,280 -$10,070,811 $1,733,990 -680.8% -$727,229 -$9,471,069 $2,975,043 -418.4%
Gross margin -865.1% -865.1% 29.1% -89,418 -201.3% -201.3% 27.1% -22,839
adjusted for -790.1% -790.1% 32.9% -82,298 -175.5% -175.5% 30.8% -20,628
Operating -1083.5% -1083.5% 19.4% -110,285 -266.8% -266.8% 17.0% -28,376
adjusted for -1008.5% -1008.5% 23.2% -103,165 -241.0% -241.0% 20.7% -26,165
Adjusted -903.7% -903.7% 24.3% -92,802 -213.1% -213.1% 22.3% -23,539
Earnings per -30.32 1.70 -1887.2% -30.04 4.20
share in Ps.
ADR presented -13.97 0.78 -1887.2% -13.84 1.93
in US$ (c)
shares 334.7 334.7 334.7 334.7 334.7 334.7
receivable 102 54 102 54
Inventory days 454 691 454 691
Inventory (w/o 323 455 323 455
Accounts 93 155 93 155
Capital Cycle 463 590 463 590
(WCC) days (e)
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 land balances, that are subsequently
charged to cost of sales and ii)income tax expense and employee statutory
profit-sharing expense. See "Adjusted EBITDA" for a reconciliation of net
income to Adjusted EBITDA for the second quarter and six-months period of 2013
c) US$ values estimated using an exchange rate of Ps.13.0235 per US$1.00 the
rate in effect as of June 30, 2013. Common share/ADR ratio: 6:1.
d) Accounts receivable not including receivables from the penitentiary
e) WCC computation based on LTM COGS under IFRS and not including COGS and
revenues from the penitentiary construction projects.
Commenting on second quarter results, Gerardo de Nicolas, Chief Executive
Officer of Homex, said:
"The second quarter of 2013 reflects the industry's structural and policies
changes which have affected Homex' operations since year end 2012. Despite
the complexity of the challenges that we had been facing which have translated
in legal and liquidity implications affecting our operations, we continue to
feel positive about our future prospects and more importantly we continue to
work diligently to solve Homex' current situation. The housing industry in
Mexico continues to be very attractive and we trust in the Federal
government's commitment and support for a solid and active future for the
industry and for our company.
During the quarter, we have dedicated a lot of time and effort to evaluate
Homex' financial alternatives as well as to restructure and resize our
operations to reflect current conditions with the objective of reactivating
our operations to improve our financial position.
During the quarter, we also successfully closed the transaction with IDEAL to
sell Homex' interest in the penitentiaries projects. This key operation
brought resources to Homex to reduce its liabilities.
We will continue to dedicate our efforts on progressively reactivating our
housing projects in Mexico; we have made important advances during the second
quarter of 2013 which should enable us to achieve better performance during
the following months."
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.
SECOND QUARTER 2013 RESULTS
CONFERENCE CALL NOTICE
DATE: Friday, July 26, 2013
TIME: 9:00 AM Central Time (Mexico City)
10:00 AM Eastern Time (New York)
Gerardo de Nicolas, Chief Executive Officer
HOSTS: Carlos Moctezuma, Vice President of Finance and Planning and Chief
Vania Fueyo, Investor Relations Officer
DIAL-IN: U.S.: 866- 887-3678
Please call 10 minutes prior to start time and request the Homex call. During
this quarter the Company will not host a Q&A session.
 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). Second quarter 2013 and 2012 figures are presented
without recognizing the effects of inflation as 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.13.0235 per US$1.00, the rate of exchange in effect on
June 30, 2013. Second quarter and first half 2013 and 2012 financial
information is unaudited and subject to adjustments.
Percentage changes are expressed in basis points and are provided for the
convenience of the reader. Basis points figures may not match, due to
Head of Investor Relations
Investor Relations Manager
SOURCE Desarrolladora Homex, S.A. de C.V.
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