Welcome!

Microsoft Cloud Authors: Pat Romanski, Lori MacVittie, Andreas Grabner, Jim Kaskade, John Basso

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.

FINANCIAL AND OPERATING HIGHLIGHTS



Twelve-Months

Thousands of pesos

4Q'12
Thousands U.S. dollars (Convenience Translation)

4Q'12
Thousands of pesos

4Q'11

Chg % and bps

2012
Thousands U.S. Dollars (Convenience Translation)

2012

2011

Chg % and 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




  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.

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
[email protected]

Vania Fueyo
Head of Investor Relations
+5266-7758-5838
[email protected]
Erika Hernandez
Investor Relations Manager
+5266-7758-5800 ext.5852
[email protected]

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
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, discussed how VPaaS enables you to move fast, creating scalable video experiences that reach your aud...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. 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 sett...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Dave McCarthy, Director of Products at Bsquare Corporation; Alan Williamson, Principal...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2017 New York The 7th Internet of @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, New York. Chris Matthieu is the co-founder and CTO of Octoblu, a revolutionary real-time IoT platform recently acquired by Citrix. Octoblu connects things, systems, people and clouds to a global mesh network allowing users to automate and control design flo...
Unsecured IoT devices were used to launch crippling DDOS attacks in October 2016, targeting services such as Twitter, Spotify, and GitHub. Subsequent testimony to Congress about potential attacks on office buildings, schools, and hospitals raised the possibility for the IoT to harm and even kill people. What should be done? Does the government need to intervene? This panel at @ThingExpo New York brings together leading IoT and security experts to discuss this very serious topic.
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, will share examples from a wide range of industries – includin...
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...