SERVICIOS CORPORATIVOS JAVER, S.A.B. DE C.V.
SERVICIOS CORPORATIVOS JAVER, S.A.B. DE C.V.: 3Q18 Earnings Release
MONTERREY, NUEVO LEON, MEXICO / ACCESSWIRE / October 22, 2018 / Servicios Corporativos Javer S.A.B. de C.V., (BMV: JAVER) (“Javer” or “the Company”), the largest housing development company in Mexico in terms of units sold, announces its financial results for the third quarter (“3Q18”) and nine-month (“9M18”) periods ended September 30, 2018. All figures presented in this report are expressed in nominal Mexican pesos (Ps.), unless otherwise stated.
CEO STATEMENT Mr. René Martínez, CEO of the Company commented, “I’m pleased to present the financial and operational results of the third quarter of 2018, which are within our expectation and well above those obtained during the 9-month period of 2017. Furthermore, regarding the elections in México not only at the federal level but also in most of the states in which we have presence, the democratic process was successful and without any setbacks, therefore our production and commercial processes continued without disruption. During the quarter, we started to title units in 5 projects, most of them focused on the middle and residential segments, with which we continue to consolidate the improvement in the sales mix. In addition to the above, the 5 projects that we started in the first half were consolidated and the sale price of each prototype was increased, which drove revenues to be higher by 17.3%, despite not having commercial lots sales in the period, while $23.0 million was recognized in 3Q17 for this type of sales. Additionally, the subsidy program continued operating throughout the quarter, the subsidized units represented 38.4% of the total, 65.6% higher than the 1,053 units that were sold with a subsidy during the same period of 2017. As of today, 68.9% of the annual budget has been consumed and the program is expected to run out during the month of October of this year. Moreover, the inertia due to the change in product offering aim at maintaining a mix oriented to the middle and residential sectors led to a surplus in gross profit and margin from the sale of homes, as presented in the first two quarters of the year. This operating improvement is reflected in the increase shown in the main financial indicators that have the highest performance in recent years, as observed in the EBITDA, which increased 37.3% to Ps. 782.3 million in the 9M18 This result also influenced the credit enhancement by the rating agency Moody’s, from the rating “B2” on a global scale to “B1” with outlook positive. It is important to mention that at the beginning of the year we announced that during 2018 we would make a strong investment in land reserves for the continuity of the Company’s strategy for 2019 and subsequent years, which has caused the free cash flow to be negative by $88.7 million in the third quarter and was practically neutral for the nine-month period ended September 30, 2018. Regarding our projects, by the end of the year, we will have 8 new projects, 6 of them focused on the middle-income segment and the rest on the residential segment. We will be inaugurating our first two developments in Playa del Carmen, Quintana Roo, which is part of our expansion strategy in the locality, since initially we only had projects in Cancun, and we intend to consolidate and gain market share. At the end of the third quarter of 2018, our market share in Infonavit’s loans for new housing is 9.6%, which represents 9.9% more than the previous year and taking into account loans for used and new housing, our market share is 5.0%. Regarding the capital structure, we are analyzing different options to refinance our debt, which should allow us to optimize costs and term conditions, of which we will be informing later on. Finally, we maintain our guidance commented in the conference of the second quarter of an increase of at least 7.5% in EBITDA, coming from 5% to 7.5% confirmed at the beginning of the year, and we reiterate our double-digit growth in revenues while ending free cash flow neutral”. For a full version of this earnings release with financial statements, go to: http://www.javer.com.mx/investors.php Veronica Lozano, Gerente de Relación con Inversionistas SOURCE: Servicios Corporativos Javer S.A.B. de C.V.
10/22/2018 EQS Newswire / EQS Group AG |