6-K 1 hmx20151028_6k.htm HOMEX REPORTS 3Q15 EARNINGS RESULTS hmx20151028_6k.htm - Generated by SEC Publisher for SEC Filing

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 6-K
Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

Report on Form 6-K dated For the month of October 2015



Homex Development Corp.
(Translation of Registrant's Name Into English)


Boulevard Alfonso Zaragoza Maytorena 2204.
Bonanza 80020. Culiacán, Sinaloa, México.
(Address of principal executive offices)

(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-packaged Concurso 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’s Concurso Mercantil proceeding under Article 339 and Title Fourteenth of the Mexican Law of Concursos Mercantiles. Consequently the Company’s operations during the Concurso Mercantil period were limited.

On October 23, 2015, the Company announced that it had successfully emerged from the Concurso Mercantil proceeding and therefore the Plan of Reorganization became effective.  Homex is the first public company to conclude a successful restructuring under the reformed Concursos 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 at http://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.

 

1 Unless 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
Name: Carlos Moctezuma
Title: Chief Financial Officer