CEMEX Latam Holdings Reports Third-Quarter 2013 Results
*CLH reports an operating EBITDA year-over-year growth of 24% during the
third quarter with an operating EBITDA margin expansion of 1.7 percentage
points, reaching a level of 35.5%
BOGOTÁ, Colombia -- October 23, 2013
CEMEX Latam Holdings, S.A. ("CLH") (BVC: CLH), announced today that
consolidated net sales reached US$474 million during the third quarter of
2013, an increase of 18% versus the pro forma third quarter of 2012. Operating
EBITDA increased by 24% during the quarter to US$168 million versus the pro
forma third quarter in 2012.
Carlos Jacks, CEO of CLH, said, “We are pleased by the strong results reached
in the third quarter. Given the high levels of construction activity in the
region, in many of our markets we sold record volumes of our products. We are
also satisfied by the positive results in our housing solutions initiative in
Colombia, as these projects are allowing us to capture incremental value.”
CLH’s Financial and Operational Highlights
*The increase in consolidated net sales during the quarter resulted mainly
from higher volumes in most of our markets, along with the effect from our
housing solutions projects in Colombia.
*Operating EBITDA growth in the quarter was driven by higher volumes, along
with lower distribution expenses, lower maintenance costs and lower fuel
costs. On a year-over-year basis, operating EBITDA margin during the
quarter expanded in most of our markets.
*Our Construrama initiative in Colombia has continued its expansion. We
recently reached a total of 200 stores that have agreed to join the
program, with more than 110 already operating as Construramas.
*Free cash flow after maintenance capital expenditures during the quarter
reached US$91 million.
Carlos Jacks added, “Our high free cashflow generation in the quarter was
driven by the strong double-digit growth of operating EBITDA. We expect to
continue using our free cashflow generation to finance our business strategy
and our expansion projects.”
Consolidated Corporate Results
During the third quarter of 2013, controlling interest net income was a gain
of US$96 million.
Net debt reached US$1,345 million at the end of the quarter.
Geographical Markets Third Quarter 2013 Highlights
Operating EBITDA in Colombia increased by 22% to US$115 million versus US$94
million in the third quarter of 2012, with an increase of 25% in net sales
reaching US$287 million.
In Panama, operating EBITDA increased 33% reaching US$40 million during the
quarter. Net sales reached US$84 million in the third quarter of 2013, an
increase of 21% compared with the same period in 2012.
In Costa Rica, operating EBITDA reached US$17 million for the quarter, 29%
higher than the same period last year. Net sales increased 19% to US$40
million, compared with US$34 million in the third quarter of 2012.
In the Rest of CLH net sales in the quarter reached US$65 million. Operating
EBITDA in the quarter increased by 14%, versus the comparable period in 2012,
reaching US$18 million.
CEMEX Latam Holdings is a regional leader in the building solutions industry
that provides high-quality products and reliable service to customers and
communities in Colombia, Panama, Costa Rica, Nicaragua, El Salvador,
Guatemala, and Brazil. CEMEX Latam Holdings' mission is to encourage the
development of the countries where it operates through innovative building
solutions that foster well-being.
This press release contains forward-looking statements and information that
are necessarily subject to risks, uncertainties and assumptions. Many factors
could cause the actual results, performance or achievements of CLH to be
materially different from those expressed or implied in this release,
including, among others, changes in general economic, political, governmental
and business conditions globally and in the countries in which CLH does
business, changes in interest rates, changes in inflation rates, changes in
exchange rates, the level of construction generally, changes in cement demand
and prices, changes in raw material and energy prices, changes in business
strategy, changes derived from events affecting CEMEX, S.A.B de C.V. and
subsidiaries (“CEMEX”) and various other factors. Should one or more of these
risks or uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described herein. CLH
assumes no obligation to update or correct the information contained in this
For convenience of the reader the 2012 pro forma consolidated financial
information was adjusted to reflect the additional results of the operating
subsidiaries for three and nine month periods ended September 30, 2012 and
reflect the 5% corporate charges and royalties agreement entered into by CLH
with CEMEX. Operating EBITDA is defined as operating earnings before other
expenses, net plus depreciation and operating amortization. Free Cash Flow is
defined as operating EBITDA minus net interest expense, maintenance and
expansion capital expenditures, change in working capital, taxes paid, and
other cash items (net other expenses less proceeds from the disposal of
obsolete and/or substantially depleted operating fixed assets that are no
longer in operation). All of the above items are presented on a consolidated
basis in 2012 based on the financial statements of CLH’s subsidiaries prepared
under International Financial Reporting Standards as issued by the
International Accounting Standards Board. Operating EBITDA and Free Cash Flow
(as defined above) are presented herein because CLH believes that they are
widely accepted as financial indicators of CLH's ability to internally fund
capital expenditures and service or incur debt. Operating EBITDA and Free Cash
Flow should not be considered as indicators of CLH's financial performance, as
alternatives to cash flow, as measures of liquidity or as being comparable to
other similarly titled measures of other companies.
CEMEX Latam Holdings, S.A.
Daniel Suárez, +57 (1) 603-9079
Patricio Treviño, +57 (1) 603-9823
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