Click here to close now.

Welcome!

.NET Authors: Carmen Gonzalez, Elizabeth White, Liz McMillan, Greg O'Connor, Jason Bloomberg

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
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Health care systems across the globe are under enormous strain, as facilities reach capacity and costs continue to rise. M2M and the Internet of Things have the potential to transform the industry through connected health solutions that can make care more efficient while reducing costs. In fact, Vodafone's annual M2M Barometer Report forecasts M2M applications rising to 57 percent in health care and life sciences by 2016. Lively is one of Vodafone's health care partners, whose solutions enable older adults to live independent lives while staying connected to loved ones. M2M will continue to gr...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
SYS-CON Events announced today that Ciqada will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Ciqada™ makes it easy to connect your products to the Internet. By integrating key components - hardware, servers, dashboards, and mobile apps - into an easy-to-use, configurable system, your products can quickly and securely join the internet of things. With remote monitoring, control, and alert messaging capability, you will meet your customers' needs of tomorrow - today! Ciqada. Let your products take flight. For more inform...
SYS-CON Events announced today that GENBAND, a leading developer of real time communications software solutions, has been named “Silver Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. The GENBAND team will be on hand to demonstrate their newest product, Kandy. Kandy is a communications Platform-as-a-Service (PaaS) that enables companies to seamlessly integrate more human communications into their Web and mobile applications - creating more engaging experiences for their customers and boosting collaboration and productiv...
Dave will share his insights on how Internet of Things for Enterprises are transforming and making more productive and efficient operations and maintenance (O&M) procedures in the cleantech industry and beyond. Speaker Bio: Dave Landa is chief operating officer of Cybozu Corp (kintone US). Based in the San Francisco Bay Area, Dave has been on the forefront of the Cloud revolution driving strategic business development on the executive teams of multiple leading Software as a Services (SaaS) application providers dating back to 2004. Cybozu's kintone.com is a leading global BYOA (Build Your O...
The best mobile applications are augmented by dedicated servers, the Internet and Cloud services. Mobile developers should focus on one thing: writing the next socially disruptive viral app. Thanks to the cloud, they can focus on the overall solution, not the underlying plumbing. From iOS to Android and Windows, developers can leverage cloud services to create a common cross-platform backend to persist user settings, app data, broadcast notifications, run jobs, etc. This session provides a high level technical overview of many cloud services available to mobile app developers, includi...
SYS-CON Events announced today that BroadSoft, the leading global provider of Unified Communications and Collaboration (UCC) services to operators worldwide, has been named “Gold Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BroadSoft is the leading provider of software and services that enable mobile, fixed-line and cable service providers to offer Unified Communications over their Internet Protocol networks. The Company’s core communications platform enables the delivery of a range of enterprise and consumer calling...
While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of Cloud and Mobile Strategy at GENBAND, will explore what is needed to take a real time communications ...
What exactly is a cognitive application? In her session at 16th Cloud Expo, Ashley Hathaway, Product Manager at IBM Watson, will look at the services being offered by the IBM Watson Developer Cloud and what that means for developers and Big Data. She'll explore how IBM Watson and its partnerships will continue to grow and help define what it means to be a cognitive service, as well as take a look at the offerings on Bluemix. She will also check out how Watson and the Alchemy API team up to offer disruptive APIs to developers.
The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquired by Aditi Technologies. He is a Microsoft Regional Director for Hyderabad, India, and one of the f...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps 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 today!
WebRTC is an up-and-coming standard that enables real-time voice and video to be directly embedded into browsers making the browser a primary user interface for communications and collaboration. WebRTC runs in a number of browsers today and is currently supported in over a billion installed browsers globally, across a range of platform OS and devices. Today, organizations that choose to deploy WebRTC applications and use a host machine that supports audio through USB or Bluetooth can use Plantronics products to connect and transit or receive the audio associated with the WebRTC session.
As enterprises move to all-IP networks and cloud-based applications, communications service providers (CSPs) – facing increased competition from over-the-top providers delivering content via the Internet and independently of CSPs – must be able to offer seamless cloud-based communication and collaboration solutions that can scale for small, midsize, and large enterprises, as well as public sector organizations, in order to keep and grow market share. The latest version of Oracle Communications Unified Communications Suite gives CSPs the capability to do just that. In addition, its integration ...
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting wearables as fashion accessories and moving away from the original clunky technology associated with t...
SYS-CON Events announced today that Litmus Automation will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Litmus Automation’s vision is to provide a solution for companies that are in a rush to embrace the disruptive Internet of Things technology and leverage it for real business challenges. Litmus Automation simplifies the complexity of connected devices applications with Loop, a secure and scalable cloud platform.
In 2015, 4.9 billion connected "things" will be in use. By 2020, Gartner forecasts this amount to be 25 billion, a 410 percent increase in just five years. How will businesses handle this rapid growth of data? Hadoop will continue to improve its technology to meet business demands, by enabling businesses to access/analyze data in real time, when and where they need it. Cloudera's Chief Technologist, Eli Collins, will discuss how Big Data is keeping up with today's data demands and how in the future, data and analytics will be pervasive, embedded into every workflow, application and infra...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, will provide some practical insights on what, how and why when implementing "software-defined" in the datacenter.
SYS-CON Media announced today that @ThingsExpo Blog launched with 7,788 original stories. @ThingsExpo Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @ThingsExpo Blog can be bookmarked. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago.