Pursuant to Rule 13a-16 or 15d-16 of
Bonanza 80020. Culiacán, Sinaloa, México.
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F ___X___ Form 40-F _______
(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes _______ No_______
(If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b); 82-)
Investor relations contact
Vania Fueyo Zarain
Investor Relations
vfueyo@homex.com.mx
HOMEX REPORTS 3Q15 EARNINGS RESULTS
Culiacán México, October 28, 2015—Desarrolladora Homex, S.A.B. de C.V. (“Homex” or “the Company”) [BMV: HOMEX] today announced financial results for the Third Quarter ended September 30, 20151.
Financial Highlights
During 2014 and 2013, the housing industry in Mexico faced a number of headwinds such as changes in the Housing Policy in Mexico, operating rules of the federal housing subsidy program, classification and score of land inventory, among others, which affected the viability and continuity of Homex’s housing developments in construction. As a result of these changes, the financial performance of Homex, and in general the housing industry in Mexico has been negatively affected.
Derived from the liquidity situation of the Company which was affected by the above mentioned changes, on April 30th, 2014 Homex filed a request for a pre-packagedConcurso Mercantil proceeding before the First District Court in Culiacán, Sinaloa. On July 3rd, 2015, the First District Court sitting in Culiacán, Sinaloa, México issued a judgment approving the“Convenios Concursales” (reorganization plans) presented by Homex. This resolution completes the Company’sConcurso Mercantilproceeding under Article 339 and Title Fourteenth ofthe Mexican Law ofConcursos Mercantiles. Consequently the Company’s operations during theConcurso Mercantil period were limited.
On October 23, 2015, the Company announced that it had successfully emerged from theConcurso Mercantil proceeding and therefore the Plan of Reorganization became effective. Homex is the first public company to conclude a successful restructuring under the reformedConcursos law and is now poised to re-emerge as a leader in the homebuilding industry. The Company intends to reactivate its operations on a more stable manner, as its re-organization plan is executed. Today Homex is well-capitalized, through the issuance of Ps.1.75 billion of convertible debentures.
The Company’s updated business plan, which was disclosed on October 23, 2015 and can be found athttp://www.homex.com.mx/ri/index.php /shareholder information / re-structuring plan.
During the third quarter of 2015, the Company registered revenues for Ps.65.2 million, resulting in a negative operating income of Ps.149.6 million. The net income of Homex for the period was positive Ps.3,752.6 million principally derived by the Company’s other income which was driven by the capitalization of liabilities in accordance to the“Convenios Concursales” (reorganization plans) presented by Homex and approved by the First District Court sitting in Culiacán, Sinaloa on July 3rd, 2015.
For the nine-months accumulated period as of September 30, 2015, the Company registered revenues by Ps.232.5 million, resulting on a negative operating income of Ps.322.7 million. Homex net income for the nine-month accumulated period was Ps. 3,390.4 million principally derived by the other income line explained above.
As of September 30, 2015, the total debt position of Homex was Ps.6.4 billion.
1Unless otherwise noted, all monetary figures are presented in thousands of Mexican pesos and in accordance with International Financial Reporting Standards (IFRS).
DESARROLLADORA HOMEX CONSOLIDATED BALANCE SHEET | ||||||||
COMPARISON AS OF SEPTEMBER 30 2015 WITH DECEMBER 31, 2014 | ||||||||
(Figures in thousands of pesos) | ||||||||
September 30 2015 |
| December 31 2014 | % Change | |||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | 54,072 | 0.2% | 105,298 | 0.5% | -48.6% | |||
Accounts receivable, net | 1,353,263 | 6.1% | 1,285,751 | 6.1% | 5.3% | |||
Inventories | 446,652 | 2.0% | 446,651 | 2.1% | 0.0% | |||
Anticipated Payemnts | 158,139 | 0.7% | 158,063 | 0.8% | 0.0% | |||
Other financial assets- net | 546,398 | 2.5% | 596,408 | 2.8% | -8.4% | |||
Total current assets | 2,558,524 | 11.5% | 2,592,171 | 12.4% | -1.3% | |||
Land held for future development and | 6,168,558 | 27.8% | ||||||
construction in progress | 6,088,689 | 29.0% | 1.3% | |||||
Property and equipment, net | 328,336 | 1.5%% | 390,003 | 1.9% | -15.8% | |||
Other assets-net | 2,198,787 | 9.9% | 1,784,272 | 8.5% | 23.2% | |||
Deferred income taxes | 10,935,629 | 49.3% | 10,126,241 | 48.3% | 8.0% | |||
19,631,310 | 88.5% | 18,389,205 | 87.6%% | 6.8% | ||||
TOTAL ASSETS | 22,189,834 | 100.0% | 20,981,376 | 100.0% | 5.8 | |||
LIABILITIES AND STOCKHOLDERS' | ||||||||
EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Notes payable to financial institutions and | ||||||||
current portion of long term debt | 5,744,845 | 25.9% | 25,275,765 | 120.5% | -77.3% | |||
Current portion of prison related long-term | ||||||||
618,104 | 2.8% | 581,165 | 2.8% | 6.4% | ||||
debt | 50,498 | 0.2% | 222,933 | 1.1% | -77.3% | |||
Accounts payable | 3,730,920 | 16.8% | 10,268,685 | 48.9% | -63.7% | |||
Land suppliers | 5,169 | 0.0% | 1,203,447 | 5.7% | -99.6% | |||
Advances from customers | 408,160 | 1.8% | 383,170 | 1.8% | 6.5% | |||
Contingent liabilities | 3,435,550 | 15.5% | 3,219,766 | 15.3% | 6.7% | |||
Taxes other than income taxes | 3,093,989 | 13.9% | 2,778,534 | 13.2% | 11.4% | |||
Deferred income taxes | 1,321,654 | 6.0% | 1,321,654 | 6.3% | 0.0% | |||
0.0% | ||||||||
Total current liabilities | 18,408,890 | 83.0% | 45,255,119 | 215.7% | -59.3% | |||
0.0% | 0.0% | |||||||
Labor obligations | 3,588 | 0.0% | 4,460 | 0.0% | -19.5% | |||
Deferred income taxes | 2,053,680 | 9.3% | 1,901,679 | 9.1% | 8.0% | |||
TOTAL LIABILITIES | 20,466,158 | 92.2% | 47,161,258 | 224.8% | -56.6% | |||
0.0% | ||||||||
STOCKHOLDERS' EQUITY | 0.0% | |||||||
Common stock | 24,162,105 | 108.9% | 425,444 | 2.0% | 5579.3% | |||
Additional paid-in capital | 2,833,255 | 12.8% | 2,833,255 | 13.5% | 0.0% | |||
Re purchase of shares for Management | (11,519) | (11,519) | ||||||
Incentive Plan | -0.1% | -0.1% | 0.0% | |||||
Retained earnings | (25,292,737) | -114.0% | (28,682,622) | -136.7% | -11.8% | |||
Financial derivative instruments | - | 0.0% | (423,712) | -2.0% | -100.0% | |||
Other stockholders' equity accounts | 80,753 | 0.4% | (272,375) | -1.3% | -129.6% | |||
Majority stockholders' equity | 1,771,857 | 8.0% | (26,131,529) | -124.5% | -106.8% | |||
Minority interest | (48,181) | -0.2% | (48,353) | -0.2% | -0.4% | |||
TOTAL STOCKHOLDERS' EQUITY | 1,723,676 | 7.8% | (26,179,882) | -124.8% | -106.6% | |||
TOTAL | LIABILITIES | AND | 22,189,834 | 20,981,376 | ||||
SHAREHOLDERS' EQUITY | 100.0 | 100.0% | 5.8% | |||||
DESARROLLADORA HOMEX CONSOLIDATED INCOME STATEMENT | ||||||
COMPARISON OF NINE MONTHS 2015 AND NINE MONTHS 2014 | ||||||
Figures in thousands of pesos (unless otherw ise indicated) | 2015 | 2014 | % Change | |||
Number of homes | 187 | 144 | 30% | |||
REVENUES | ||||||
Housing revenues | 165,266 | 71.1% | 313,175 | 85.9% | -47% | |
Construction revenues | 38,844 | 16.7% | - | 0.0% | - | |
Other revenues | 28,360 | 12.2% | 51,252 | 14.1% | -45% | |
TOTAL REVENUES | 232,470 | 100.0% | 364,427 | 100.0% | -36% | |
COSTS | 189,171 | 81.4% | 699,272 | 191.9% | -73% | |
GROSS PROFIT | 43,299 | 18.6% | (334,845) | -91.9% | -113% | |
TOTAL SELLING AND ADMINISTRATIVE EXPENSES | 366,044 | 157.5% | 561,331 | 154.0% | -35% | |
OPERATING INCOME | (322,745) | -138.8% | (896,175) | -245.9% | -64% | |
OTHER (EXPENSES) INCOME, NET | 4,529,521 | 1948.4% | (92,028) | -25.3% | -5022% | |
NET COMPREHENSIVE FINANCING COST | ||||||
Interest expense and commissions | 1,450,873 | 624.1% | 2,526,300 | 693.2% | -43% | |
Interest income | (882) | -0.4% | 847 | 0.2% | -204% | |
Foreign exchange (gain) loss | 1,149 | 0.5% | (72,318) | -19.8% | -102% | |
Derivative position (gain) loss | - | 0.0% | - | 0.0% | ||
- | 0.0% | - | 0.0% | |||
1,451,139 | 624.2% | 2,454,830 | 673.6% | -41% | ||
INCOME BEFORE INCOME TAX | 2,755,637 | 1185.4% | (3,443,034) | -944.8% | -180% | |
INCOME TAX EXPENSE | (634,737) | -273.0% | 340,516 | 93.4% | -286% | |
NET INCOME | 3,390,374 | 1458.4% | (3,783,550) | -1038.2% | -190% | |
MAJORITY INTEREST | 3,389,885 | 1458.2% | (3,776,173) | -1036.2% | -190% | |
MINORITY INTEREST | 489 | 0.2% | (7,377) | -2.0% | -107% | |
NET INCOME | 3,390,374 | 1458.4% | (3,783,550) | -1038.2% | -190% |
DESARROLLADORA HOMEX CONSOLIDATED INCOME STATEMENT | |||||||
COMPARISON OF THREE MONTHS 2015 WITH THREE MONTHS 2014 | |||||||
Figures in thousands of pesos (unless otherw ise indicated) |
3Q15 | 3Q14 | % Change | ||||
Number of homes | 90 | 22 | 309% | ||||
REVENUES | |||||||
Housing revenues | 51,099 | 78.4% | 54,680 | 86.3% | -7% | ||
Construction revenues | 7,221 | 11.1% | - | 0.0% | - | ||
Other revenues | 6,876 | 10.5% | 8,659 | 13.7% | -21% | ||
TOTAL REVENUES | 65,196 | 100.0% | 63,339 | 100.0% | 3% | ||
COSTS | 49,804 | 76.4% | 80,673 | 127.4% | -38% | ||
GROSS PROFIT | 15,392 | 23.6% | (17,334) | -27.4% | -189% | ||
TOTAL SELLING AND ADMINISTRATIVE EXPENSES | 165,021 | 253.1% | 68,869 | 108.7% | 140% | ||
- | |||||||
OPERATING INCOME | (149,629) | -229.5% | (86,203) | -136.1% | 74% | ||
OTHER (EXPENSES) INCOME, NET | 4,549,358 | 6978.0% | (18,263) | -28.8% | -25011% | ||
NET COMPREHENSIVE FINANCING COST | |||||||
Interest expense and commissions | 1,127,346 | 1729.2% | 35,179 | 55.5% | 3105% | ||
Interest income | (406) | -0.6% | 847 | 1.3% | -148% | ||
Foreign exchange (gain) loss | 406 | 0.6% | (41,999) | -66.3% | -101% | ||
Derivative position (gain) loss | - | 0.0% | - | 0.0% | |||
1,127,346 | 1729.2% | (5,973) | -9.4% | -18974 | |||
INCOME BEFORE INCOME TAX | 3,272,384 | 5019.3% | (98,493) | -155.5% | -3422 | ||
INCOME TAX EXPENSE | (480,217) | -736.6% | 9,741 | 15.4% | -5030 | ||
NET INCOME | 3,752,601 | 5755.9% | (108,234) | -170.9% | -3567 | ||
MAJORITY INTEREST | 3,750,864 | 5753.2% | (103,866) | -164.0% | -3711 | ||
MINORITY INTEREST | 1,737 | 2.7% | (4,368) | -6.9% | -140 | ||
NET INCOME | 3,752,601 | 5755.9% | (108,234) | -170.9% | -3567 |
About Homex
Desarrolladora Homex, S.A.B. de C.V. is a vertically integrated home-development company focused on affordable entry-level and middle-income housing in Mexico.
Desarrolladora Homex, S.A.B. de C.V. quarterly reports and all other written materials may from time to time contain statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Forward-looking statements involve inherent risks and uncertainties. We caution investors that a number of important factors can cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include economic and political conditions and government policies in Mexico or elsewhere, including changes in housing and mortgage policies, inflation rates, exchange rates, regulatory developments, customer demand and competition. For those statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Discussion of factors that may affect future results is contained in our filings with the Securities and Exchange Commission.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
Date: October 29, 2015 | Homex Development Corp. By: /s/ Carlos Moctezuma |