Microsoft Cloud Authors: Elizabeth White, Yeshim Deniz, Serafima Al, Janakiram MSV, John Katrick

News Feed Item

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.

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

  • Total 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.  
  • For 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.
  • During 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.
  • For 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.
  • Adjusted 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.
  • As 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.



Thousands of pesos

Thousands U.S. dollars (Convenience Translation)

Thousands of pesos


Chg % and bps

Thousands U.S. Dollars (Convenience Translation)



Chg % and bps

Volume (Homes)


















Housing revenues


















  Capitalization of Comprehensive Financing Costs (CFC)









Gross profit









Gross profit adjusted for capitalization of CFC









Operating income









Operating income adjusted for capitalization of CFC









Interest expense, net (a)









Net income









Net Income adjusted for FX









Adjusted EBITDA (b)









Gross margin









Gross margin adjusted for capitalization of CFC









Operating margin









Operating margin adjusted for capitalization of CFC









Adjusted EBITDA margin









Net Income margin adjusted for FX









Earnings per share in Ps.





Earnings per share in Ps. adjusted for FX





Earnings per ADR presented in US$ (c)





Earnings per ADR presented in US$ adjusted for FX





Weighted avg. shares outstanding (MM)







Accounts receivable days (d)



Inventory days



Inventory (w/o land) days



Accounts payable days ( e)



Working Capital Cycle (WCC) days (f)



  1. Including interest expense recognized in Cost of Goods Sold  ( COGS ) and Comprehensive Financing Costs (CFC); not including interest expense from the penitentiary construction projects.
  2. 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.
  3. 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.
  4. Accounts receivable not including receivables from the penitentiary construction projects
  5. 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.
  6. 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.





Wednesday, February 27, 2013


9:00 AM Central Time (Mexico City)

10:00 AM Eastern Time (New York)


Gerardo de Nicolas, Chief Executive Officer

Carlos Moctezuma, Vice President of Finance and Planning and Chief Financial Officer

Vania Fueyo, Investor Relations Officer


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.

[email protected]

Vania Fueyo
Head of Investor Relations
[email protected]
Erika Hernandez
Investor Relations Manager
+5266-7758-5800 ext.5852
[email protected]ex.com.mx

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

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
DXWorldEXPO LLC announced today that "Miami Blockchain Event by FinTechEXPO" has announced that its Call for Papers is now open. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Financial enterprises in New York City, London, Singapore, and other world financial capitals are embracing a new generation of smart, automated FinTech that eliminates many cumbersome, slow, and expe...
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER give you detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPO also offers s...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...