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Homex Reports Solid Q2 2011 in Line with the Company's 2011 Guidance


Desarrolladora Homex, S.A.B. de C.V. (NYSE: HXM) today announced its financial results for the Second Quarter ended on June 30th, 2011

Total revenue increased 13.7 percent in the second quarter of 2011 to Ps.5.5 billion (US$466 million) from Ps.4.8 billion (US$410 million) for the same period in 2010.

Gross margin for the quarter was 30.9 percent compared to 30.8 percent for the second quarter of 2010. 2Q11 gross margin, on a pro forma basis, without considering the application of MFRS D-6 "Capitalization of Comprehensive Financing Cost", increased 152 bps to 34.4 percent compared to 32.8 percent during the same period of last year, mainly as a result of higher average prices, efficiencies generated from the increased use of the Company's aluminum mould technology.

Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) during the quarter was Ps.1,237.5 million (US$105 million), a 16.7 percent increase from the Ps.1,060.0 million (US$90 million) reported for the second quarter of 2010. Adjusted EBITDA margin was 22.5 percent, an increase of 58 basis points from 22.0 percent for the second quarter of 2010, due to the improvement in gross margin as well as lower SG&A expenses.

Earnings per share for the second quarter of 2011 increased to Ps.1.41, as compared to Ps.1.39 reported in the second quarter of 2010. On an accumulated basis as of June 30, 2011 earnings per share increased 18 percent to Ps.2.18 from Ps.1.85 as of June 30, 2010.

During the second quarter of 2011, Homex' free cash flow generation had a positive balance of Ps. 466 million, as a result of the stability of its working capital cycle. On an accumulated basis as of June 30, 2011 the Company has achieved positive free cash flow of Ps. 97.8 million.

Posted-In: Earnings News


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