JAVER REPORTS STRONG FCF GENERATION, REVENUES AND EBITDA FOR 9M16
20 Octubre 2016 - 3:08PM
BMV General Information
MONTERREY, NUEVO LEON, MEXICO - OCTOBER 20, 2016 - SERVICIOS
CORPORATIVOS JAVER S.A.B. DE C.V., (BMV: JAVER) ("JAVER" OR "THE
COMPANY"), ONE OF THE LARGEST HOUSING DEVELOPMENTCOMPANIES IN
MEXICO, TODAY ANNOUNCED FINANCIAL RESULTS FOR THE THIRD QUARTER
("3Q16") AND FIRST NINE MONTH ("9M16") PERIODS ENDED SEPTEMBER 30,
2016. ALL FIGURES PRESENTED IN THIS REPORT ARE EXPRESSED IN NOMINAL
MEXICAN PESOS (PS.), UNLESS OTHERWISE SPECIFIED.
3Q16 HIGHLIGHTS:- UNITS TITLED DECREASED 3.7% TO 4,339 UNITS IN
3Q16 FROM 4,507 UNITS IN 3Q15. IN 9M16, UNITS SOLD DECLINED 1.0% TO
13,551 UNITS FROM 13,691 UNITS IN 9M15.
- NET REVENUES INCREASED 4.3% TOPS. 1,636.9 MILLION IN 3Q16 FROM
PS. 1,568.8 MILLION IN 3Q15; REVENUES WERE PS. 5,119.6 MILLION IN
9M16, REPRESENTING A DOUBLE DIGIT GROWTH OF 11.6% COMPARED TO PS.
4,586.4 MILLION IN 9M15, WHICH WAS DRIVEN BY AN IMPROVED SALES MIX,
A HIGHER PROPORTION OF RESIDENTIAL REVENUES AND A HIGHER AVERAGE
SALES PRICE.- EBITDA INCREASED 11.8% TO PS. 218.1 MILLION IN 3Q16
FROM PS. 195.1 MILLION IN 3Q15. IN 9M16, EBITDA GREW 14.0% TO PS.
649.2 MILLION FROM PS. 569.8 MILLION IN 9M15, AS A RESULT OF HIGHER
MARGINS DERIVED FROM THE EFFECTS MENTIONED ABOVE. EBITDA MARGIN
INCREASED 0.3 PERCENTAGE POINTS TO 12.7% IN 9M16 FROM 12.4% IN
9M15.
- NET RESULT WAS PS. (20.1) MILLION IN 3Q16 COMPAREDTO PS. (395.5)
MILLION IN 3Q15, PRIMARILY DUE TO LOWER INTEREST EXPENSES AND
LESSER FX LOSSES AS A RESULT OF THE DEBT REDUCTION. THIS RESULT IS
MAINLY EXPLAINED BY A CHANGE IN THE FX LOSS FROM PS. 355.3 MILLION
IN 3Q15 TO PS. 109.4 MILLION IN 3Q16. IN 9M16 NET RESULT WAS PS.
(349.2) MILLION, COMPARED TO PS. (528.3) MILLION IN 9M15. THE 9M16
NET RESULT WAS PRIMARILY AFFECTED BY THE PS. 376.8 IN COSTS
INCURRED FROM THE TENDER OFFER FOR THE COMPANY'S 2021 NOTES
EXECUTED IN 1Q16ALONG WITH PS. 217.0 MILLION IN FX LOSSES. NET
INCOME (LOSS) PER SHARE WAS PS. (0.06) AS OF SEPTEMBER 30, 2016 AND
PS. (3.86) AS OF SEPTEMBER 30, 2015.- POSITIVE FCF TOTALED PS. 63.2
MILLION IN 3Q16 COMPARED TO PS. (313.4) MILLION IN 3Q15. FOR 9M16,
THE COMPANY GENERATED PS. 384.6 MILLION, WHICH IS MORE THAN DOUBLE
THE AMOUNT OF PS. 150.2 MILLION GENERATED IN 9M15. THE INCREASES
WERE DRIVEN BY AN EFFICIENT INVENTORY MANAGEMENT AND LOWER INTEREST
EXPENSES DUE TO THE DE-LEVERAGING OF OUR BALANCE SHEET.
- DIVIDENDS: ON APRIL 29, 2016, OUR GENERAL SHAREHOLDERS' MEETING
APPROVED A DIVIDEND PAYMENT OF PS. 1.7053 PER SHARE, IN ACCORDANCE
WITH THE PARAMETERS OF THE COMPANY'S DIVIDEND POLICY. THE DIVIDEND
IS BEING PAID IN 4 INSTALLMENTS. THE THIRD INSTALLMENT OF PS.
0.2600 PER SHARE WAS DISTRIBUTED ON OCTOBER 18, 2016. THE FIRST TWO
INSTALLMENTS WERE PAID ON MAY 18, 2016 AND JULY 19, 2016,
RESPECTIVELY, AND WERE ALSO EQUIVALENT TO PS. 0.2600 PER SHARE. THE
FOURTH AND FINAL PAYMENT OF PS. 0.9253 PER SHARE WILL TAKE PLACE IN
JANUARY 2017. ALL DIVIDEND PAYMENTSHAVE BEEN TOTALLY FUNDED WITH
THE FREE CASH FLOW GENERATED IN THE YEAR.
CEO STATEMENTMR. EUGENIO GARZA, JAVER'S CHIEF EXECUTIVE OFFICER
COMMENTED, "THE THIRD QUARTER OF 2016 PROVIDED YET AGAIN, FURTHER
EVIDENCE THAT OUR FLEXIBLE BUSINESS MODEL CONTINUES TO DELIVER
STRONG RESULTS UNDER A CONTINUOUSLY CHANGING MARKET ENVIRONMENT.
ALTHOUGH OUR UNITVOLUMES DECLINED COMPARED TO LAST YEAR, THE
DELIBERATE CHANGE IN GEOGRAPHIC AND PRODUCT SEGMENT MIX WE STARTED
TO IMPLEMENT SINCE LAST YEAR, CONTINUES TO PAYOFF HANDSOME RETURNS.
OUR AVERAGE PRICE IS UP 13.9% YEAR OVER YEAR AND WITH IT OUR
ACCUMULATED REVENUES AND OPERATING PROFIT FOR THE YEAR. MOREOVER,
WE CONTINUETO MAINTAIN EXTREME DISCIPLINE OF OUR INVESTMENTS AND
WORKING CAPITAL TO BE ABLE TO TRANSLATE THIS INCREASED
PROFITABILITY INTO FREE CASH FLOW. DURING THE YEAR WE HAVE
GENERATED PS.384.6 MILLION IN FREE CASH FLOW, WHICH IS MORE THAN
ENOUGH TO FUND OUR GENEROUS DIVIDEND PAYOUT RATIO WHILE STILL
MAINTAINING ADEQUATE RESERVES FOR PRUDENT AND BALANCED GROWTH.
DURING THE QUARTER, SUBSIDY DISBURSEMENTS IN THECOUNTRY CONTINUED
ON THEIR EXPECTED DOWNWARD TREND AS MOST OF THE RESOURCES ALLOCATED
IN OUR TARGET STATES BEGAN TO DRY OUT. AS OF SEPT 30, PS. 6.9
MILLION OFTHE TOTAL PS. 9.3 MILLION SUBSIDY BUDGET HAD BEEN SPENT,
PRACTICALLY EXHAUSTED IN OUR STATES OF INTEREST. WE STILL EXPECT A
RELATIVELY SMALL DISBURSEMENT FOR THE FOURTH QUARTER IN THE STATES
WHERE WE HAVE PRESENCE AS REALLOCATIONS AND YEAR-END ADJUSTMENTS
FREE UP THE LAST REMAINING RESOURCES. NONETHELESS OUR SUBSIDYSALES
AS A PERCENTAGE OF TOTAL SALES FOR THE YEAR STANDS AT 42.3%
COMPARED TO 54.1% LAST YEAR, WITH A DOWNWARD TREND FOR THE FOURTH
QUARTER. NOTWITHSTANDING THIS, OUR ABILITY TO QUICKLY SHIFT
PRODUCTION AND SALES MIXES TOWARDS OTHER SEGMENTS CONTINUES TO HELP
US ATTENUATE THIS EFFECT.THE 2017 SUBSIDY BUDGET CONTINUES TO BE
DISCUSSED WITHIN THE CONTEXT OF A VERY AUSTERE FISCAL STANCE BY THE
FEDERAL GOVERNMENT. PRELIMINARY FIGURES SUGGEST THAT HOUSING
SUBSIDIES WILL PROBABLY BE ABOUT 30% LOWER IN 2017. WE BELIEVE THAT
MORE THAN THE ABSOLUTE AMOUNT, THE MOST IMPORTANT PART OF THE 2017
SUBSIDY PROGRAM WILL BE IN THE DETAILED OPERATIONAL RULES. WE
ANTICIPATE THAT BOTH THE MAXIMUM AMOUNT PER HOME, PRIORITY
ASSIGNMENT AND OTHER RULES WILL LIKELY CHANGE TO TRY TO MAXIMIZE
THE SOCIAL IMPACT OF THE PROGRAM WITHIN THE ABSOLUTE PESO AMOUNT
CONSTRAINT.
AT THEMARGIN AND DESPITE HOW THE PROGRAM ENDS UP BEING FUNDED, THE
COMPANY WOULD PREFER TO KNOW THE POLICIES IN ADVANCE, AND WOULD
PREFER THAT THE AUTHORITIES PROVIDEA LEVEL PLAYING FIELD, AND THE
CONTINUITY OF THE EXERCISE OF THE PROGRAM UNTIL RESOURCES ARE
EXHAUSTED RATHER THAT THE "QUEUING" SYSTEM THAT IS CURRENTLY
EMPLOYED. NOTWITHSTANDING THIS, WE ARE CONFIDENT THAT OUR
OPERATIONAL CAPABILITIES WILL ALLOW US TO PROFITABLY DELIVER SOLID
RESULTS UNDER ANY SCENARIO THAT ENDS UPPLAYING OUT.
ON THE FINANCING FRONT WE HAVE MADE SOME PROGRESS, ALBEIT SLOW, IN
PLANNING A TOTAL REFINANCING PACKAGE THAT WILL LOWER ALL OUR
FINANCING COST AND ELIMINATE OUR FX EXPOSURE COMPLETELY. WE HOPE TO
HAVE MORE CONCRETE NEWS ON THIS FRONT IN THE NEAR FUTURE.ON THE NEW
DEVELOPMENT FRONT, WE CONTINUE TO EXPERIENCE PERMITTING DELAYS IN A
COUPLE OF OUR MOST IMPORTANT EXPECTED OPENINGS FOR 2016. THESE
DELAYS HAVE ALREADY CAUSED TITLINGS TO BE BELOW OUR EXPECTED
VOLUMES TO DATE AND WILL LIKELY ALSO AFFECT 4Q VOLUMES.
NONETHELESS, WE HAVE BEEN ABLE TO RECOUP THESE LOSSES SO FAR WITH
BETTER MIX, AND EXPENSE CONTROL WHICH SHOULD CONTINUE TO PARTIALLY
MITIGATE THE IMPACT THROUGH THE ENDOF 2016.
ON A FINAL NOTE, WE WANT TO HIGHLIGHT AN EXCITING NEW PILOT
INITIATIVE WE JUST LAUNCHED IN CONJUNCTION WITH CONAVI AND THE
DEUTSCHE GESELLSCHAFT FR INTERNATIONALE ZUSAMMENARBEIT (GIZ) OR THE
GERMAN CORPORATION FOR INTERNATIONAL COOPERATION, AND THE STATE OF
NUEVO LEON. ON OCTOBER 13, WE BROKE GROUND ON A CLUSTER OF 52
RESIDENTIAL UNITS WITHIN OUR BOSQUE BOREAL PROJECT, WHICH WILL BE
CONSTRUCTED UNDER THE NAMA FACILITY GUIDELINES. THROUGH SUBSIDIES
PROVIDED BY THE MULTILATERAL INSTITUTION AND CONAVI WE WILL BE
BUILDING HOMES WITH ADVANCED ECO-FRIENDLY TECHNOLOGIES AND BUILDING
MATERIALS WHICHWILL REDUCE ENERGY CONSUMPTION AND CO2 EMISSIONS BY
UP TO 70% APPROXIMATELY, WHEN COMPARED TO OUR CURRENT
SPECIFICATIONS. THESE ENERGY SAVINGS TRANSLATE DIRECTLY INTO HIGHER
PURCHASING POWER FOR OUR CUSTOMERS AND IMPROVE NOT ONLY THEIR
QUALITY OF LIFE BUT THE QUALITY OF THE ENVIRONMENT FOR FUTURE
GENERATIONS. WE ARECONFIDENT THAT THESE KINDS OF INITIATIVES WILL
PAVE THE WAY TO A SECULAR TREND OF INNOVATION IN BUILDING MATERIALS
AND PRACTICES THAT WILL PROVIDE BENEFITS TOTHE ECOSYSTEM AND
EVERYONE INVOLVED IN THE INDUSTRY."
UNITS SOLD AND NET REVENUESUNITS SOLD: THE COMPANY TITLED 4,339
UNITS IN 3Q16, A 3.7% DECREASE COMPARED TO 4,507 UNITS IN 3Q15. THE
RESIDENTIAL SEGMENT WAS THE ONLY ONE TO SHOW A POSITIVE TREND WITH
A 32.2% GROWTH COMPARED WITH 3Q15 FIGURES; THE AFFORDABLE ENTRY
LEVEL (AEL) AND MIDDLE INCOME SEGMENTS DECREASED 5.7% AND 7.6%,
RESPECTIVELY.DESPITE THE DECLINE, THE SALES MIX WAS FOCUSED TOWARD
THE MIDDLE INCOME SEGMENT, WHICH REPRESENTED 62.4% OF TOTAL UNITS
SOLD AND 53.8% OF TOTAL REVENUES IN 3Q16; WHILE AEL UNITS COMPRISED
25.9% OF TOTAL HOMES TITLED AND 16.7% OF TOTAL REVENUES DURING THE
SAME PERIOD.
FOR THE FIRST NINE MONTHS OF 2016, HOMES TITLED DECREASED 1.0% TO
13,551 UNITS COMPARED TO 13,691 UNITS IN 9M15. THE RESIDENTIAL
SEGMENT HAD A 107.7% INCREASE YOY, WHILETHE MIDDLE INCOME SEGMENT
REMAINED FLAT AND THE AEL SEGMENT DECREASED 22.7%. FOR 9M16, MIDDLE
INCOME SEGMENT HOMES REPRESENTED 63.6% OF TOTAL UNITS SOLD AND
55.3% OF TOTAL REVENUES. AEL UNITS COMPRISED 24.6% OF TOTAL HOMES
TITLED AND 15.7% OF TOTAL REVENUES. RESIDENTIAL HOMES REPRESENTED
11.8% OF TOTAL UNITS SOLD AND27.4% OF TOTAL REVENUES.
COMMERCIAL LOT SALES DECREASED 50.4% TO PS. 21.8 MILLION IN 3Q16
AND DECLINED 31.3% TO PS. 81.0 MILLIONIN 9M16, AS NO BULK SALES
WERE REGISTERED DURING THE QUARTER.
PRICES: JAVER'S AVERAGE HOMESALES PRICE INCREASED 10.0% IN 3Q16 TO
PS. 372.2 THOUSAND FROM PS. 338.4 THOUSAND IN 3Q15; WHILE THE
AVERAGE OVERALL SALES PRICE IN 9M16 ALSO REGISTERED A DOUBLE DIGIT
GROWTH OF 13.9% TO PS. 371.8 THOUSAND FROM PS. 326.4 THOUSAND IN
9M15. IN BOTH PERIODS, THE RISE IN THE AVERAGE SALES PRICES IS DUE
TO THE IMPROVED SALES MIX WITH A HIGHER FOCUS ON THE MIDDLE INCOME
AND RESIDENTIAL SEGMENTS.
MORTGAGE PROVIDER MIX: INFONAVIT CONTINUED TO BE JAVER'S PRIMARY
MORTGAGE PROVIDER. DURING 3Q16, INFONAVIT (INCLUDING COFINAVIT)
REPRESENTED 93.9% OF TOTAL UNITS TITLED COMPARED TO 95.5% IN 3Q15.
IN 9M16, UNITS SOLD WITH AN INFONAVIT OR COFINAVIT LOAN COMPRISED
93.8% OF THE TOTAL COMPARED TO 97.1% IN 9M15. THE COMPANY HAS BEEN
ABLE TO INCREASE ITS FOVISSSTEAND FINANCIAL INSTITUTIONS MORTGAGE
MIX AS THE RESIDENTIAL SEGMENT AND ITS PRESENCE IN THE STATE OF
MEXICO HAS GROWN.SUBSIDIES: DURING 3Q16, SUBSIDIES REPRESENTED
29.1% OF TOTAL UNITS SOLD COMPARED TO 19.0% IN 3Q15. VERTICAL
HOUSING ABSORBED 64.3% OF THE TOTAL SUBSIDIES DURING THE PERIOD
COMPARED TO 33.1% IN 3Q15. IN 9M16, 42.3% OF UNITS WERE SOLD WITH A
SUBSIDY COMPARED TO 54.1% IN 9M15. VERTICAL HOUSING REPRESENTED
41.2% OF THE TOTAL SUBSIDIES ABSORBED IN 9M16 COMPARED TO 28.5% IN
9M15.
GROSS PROFIT / MARGINGROSS PROFIT INCREASED 3.4% TO PS. 423.6
MILLION IN 3Q16 AND 14.4% IN 9M16 TO PS. 1,370.2 MILLION, PRIMARILY
DUE TO THE IMPROVEMENT OF THE SALES MIX WITH A GREATER FOCUS
TOWARDS THE MIDDLE INCOME SEGMENT, A GREATER PROPORTION OF
RESIDENTIAL REVENUES, A HIGHER AVERAGE SALES PRICE, AND AN
EFFECTIVE COST CONTAINMENT PROGRAM.
GROSS MARGIN DECREASED 0.2 PERCENTAGE POINTS IN 3Q16 TO 25.9%
COMPARED TO 26.1% IN 3Q15, AND IMPROVED 0.7 PERCENTAGE POINTS IN
9M16 TO 26.8% FROM 26.1% IN 9M15.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES INCREASED 1.2% IN 3Q16
TO PS. 229.5 MILLION FROM PS. 226.8 MILLION IN 3Q15. FOR 9M16,
SG&A GREW 15.3% TO PS. 767.1 MILLION FROM PS. 665.3 MILLION IN
9M15, AS A RESULT OF A HIGHER NUMBER OF PERSONNEL IN THE STATE OF
MEXICO AND QUINTANA ROO, INVESTMENTS IN NEW IT SYSTEMS, EXPENSES
RELATED TO REGULATORY REQUIREMENTS THAT JAVER MUST COMPLY WITH AS A
PUBLICLY-TRADED ENTITY; ALONG WITH A NON-CASH CHARGE OF PS. 12.0
MILLION DUE TO AN ACCELERATED DEPRECIATION OF ASSETS THAT WERE LEFT
IN DISUSE GIVEN THE RECENT MOVE OF OURHEADQUARTERS TO A NEW
BUILDING.
EBITDA / MARGIN
EBITDA INCREASED 11.8%TO PS. 218.1 MILLION IN 3Q16 FROM PS. 195.1
MILLION IN 3Q15. IN 9M16, EBITDA GREW 14.0% TO PS. 649.2 MILLION
FROM PS. 569.8 MILLION IN 9M15, AS A RESULT OF HIGHER MARGINS
DERIVED FROM THE EFFECTS MENTIONED ABOVE. EBITDA MARGIN INCREASED
0.3 PERCENTAGE POINTS TO 12.7% IN 9M16 FROM 12.4% IN 9M15NET
RESULT
NET RESULT WAS PS. (20.1) MILLION IN 3Q16 COMPARED TO PS. (395.5)
MILLION IN 3Q15, PRIMARILY DUE TO LOWER INTEREST EXPENSES AND
LESSER FX LOSSES AS A RESULT OF THE DEBT REDUCTION. THIS RESULT
ISMAINLY EXPLAINED BY A CHANGE IN THE FX LOSS FROM PS. 355.3
MILLION IN 3Q15 TO PS. 109.4 MILLION IN 3Q16. IN 9M16 NET RESULT
WAS PS. (349.2) MILLION, COMPARED TOPS. (528.3) MILLION IN 9M15.
THE 9M16 NET RESULT WAS PRIMARILY AFFECTED BY THE PS. 376.8 IN
COSTS INCURRED FROM THE TENDER OFFER FOR THE COMPANY'S 2021 NOTES
EXECUTED IN 1Q16 ALONG WITH PS. 217.0 MILLION IN FX LOSSES. NET
INCOME (LOSS) PER SHARE WAS PS. (0.06) AS OF SEPTEMBER 30, 2016 AND
PS. (3.86) AS OF SEPTEMBER 30, 2015.
COMPREHENSIVE INCOME, WHICH INCLUDES MTM GAINS AND LOSSES ON
DERIVATIVES TO HEDGE THE COUPONS OF THE FOREIGN EXCHANGE EXPOSURE
ON DEBT, WAS PS. (7.9) MILLION IN 3Q16 AND PS. (395.5) MILLION IN
9M16.
ASSETS / LIABILITIESCASH AND CASH EQUIVALENTS WERE PS. 615.2
MILLION AS OF SEPTEMBER 30, 2016. WORKING CAPITALAS OF SEPTEMBER
30, 2016, THE WORKING CAPITAL CYCLE WAS 292 DAYS, WHICH REMAINED
RELATIVELY FLAT COMPARED TO 288 DAYS REGISTERED IN JUNE 30, 2016.
THE COMPANY'S EFFICIENT INVENTORY MANAGEMENT CONTRIBUTED TO
MAINTAIN UNCHANGED ITS WORK IN PROGRESS INVENTORY TURNOVER, WHILE
ITS COLLECTION PERIOD REMAINED IN 75 DAYS AS IN THE LAST TWO
QUARTERS, A 9 DAYS' DECREASE COMPARED TO THE RECEIVABLE TURNOVER OF
86 DAYS REGISTERED IN 1Q16.FREE CASH FLOW
POSITIVE FCF TOTALED PS. 63.2 MILLION IN 3Q16 COMPARED TO PS.
(313.4) MILLION IN 3Q15. IN 9M16, THE COMPANY GENERATED PS. 384.6
MILLION, WHICH IS MORE THAN DOUBLE THE AMOUNT OF PS. 150.2 MILLION
GENERATED IN 9M15. THE INCREASES WERE DRIVEN BY AN EFFICIENT
INVENTORY MANAGEMENT AND LOWER INTEREST EXPENSES DUE TO THE
DE-LEVERAGING OF ITS BALANCE SHEET.
DEVELOPMENT PIPELINE
HOME STARTS INCREASED 12.2% TO 4,902 UNITS IN 3Q16 COMPARED TO
4,369 UNITS IN 3Q15, AS THECOMPANY IS PREPARING TO LAUNCH 5 NEW
DEVELOPMENTS IN AGUASCALIENTES, QUERETARO, QUINTANA ROO AND STATE
OF MEXICO, AND RAMPING UP INVENTORY FOR THE FIRST FEW MONTHS OF
2017.
HOME COMPLETIONS INCREASED 1.8% TO 4,579 UNITS IN 3Q16 FROM 4,499
IN 3Q15, IN LINE WITH THE INCREASE IN CONSTRUCTION SPEND IN THE
QUARTER.
FINISHED HOME INVENTORY INCREASED TO 2,262 UNITS AS OF SEPTEMBER
30, 2016 COMPARED TO 2,022 UNITS AS OFJUNE 30, 2016 AS THE RISE IN
HOME COMPLETIONS IMPACTED THE REPLENISHMENT OF JAVER'S FINISHED
HOME INVENTORY.
LAND RESERVESAS OF SEPTEMBER 30, 2016, THE COMPANY'S TOTAL LAND
BANK REACHED APPROXIMATELY 95,566 UNITS, OF WHICH APPROXIMATELY
65.8% WERE OWNED LAND RESERVES AND 34.2% WERE HELD THROUGH LAND
TRUST AGREEMENTS.
DEBT AND DERIVATIVES EXPOSUREAS OF SEPTEMBER 30, 2016, JAVER
CONTINUED TO POSSESS AVAILABLE CREDIT FACILITY LINES IN EXCESS OF
PS. 502.2 MILLION. THESE CREDIT LINES COULD BE USED AT ANY TIME AS
LONG AS JAVER IS IN COMPLIANCE WITH ITS BOND INCURRENCE COVENANTS.
JAVER MAINTAINED DERIVATIVE POSITIONS TO HEDGE ITS CURRENCY
EXPOSURE RELATED TO THE 2021 NOTE COUPONS AND PRINCIPAL. AS OF
SEPTEMBER 30, 2016 THE WEIGHTED HEDGE OF THE COUPONS WAS 2.0 YEARS
AND JAVER WILLINCLUDE ADDITIONAL HEDGES TO BE IN LINE WITH ITS
HEDGING STRATEGY.
AS OF SEPTEMBER 30, 2016, THE COMPANY POSSESSED US$ 23 MILLION IN
AVAILABLE CREDIT LINES FROM DERIVATIVE COUNTERPARTIES TO FINANCE
ANY POTENTIAL NEGATIVE CARRYING VALUES ON THE COMPANY'S DERIVATIVE
CONTRACTS.AS OF SEPTEMBER 30, 2016, TOTAL DEBT / LTM EBITDA REACHED
2.55X; NET DEBT TO EBITDA WAS 1.95X; EBITDA INTEREST COVERAGE
REACHED 2.52X.SERVICIOS CORPORATIVOS JAVER S.A.B. DE C.V.
CORDIALLY INVITES YOU TO ITSTHIRD QUARTER 2016
CONFERENCE CALL & WEBCAST PRESENTATIONFRIDAY, OCTOBER 21,
2016
11:00 A.M. NEW YORK TIME10:00 A.M. MEXICO CITY/MONTERREY TIME
PRESENTING FOR JAVER:MR. EUGENIO GARZA, CHIEF EXECUTIVE OFFICER
MR. FELIPE LOERA REYNA, CHIEF FINANCIAL OFFICER
TOACCESS THE CALL, PLEASE DIAL:
1(800) 311-9401 FROM WITHIN THE U.S.
1(334)323-7224 FROM OUTSIDE THE U.S.
PASSCODE: 2366
TO ACCESS THE LIVE AND ARCHIVED WEBCAST PRESENTATION, VISIT:
HTTPS://WWW.WEBCASTER4.COM/WEBCAST/PAGE/1110/17546
A REPLAY OF THIS CALL WILL BE AVAILABLE FOR 30 DAYS.
TO OBTAIN THE REPLAY, PLEASE CALL:
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1(334) 323-0140 FROM OUTSIDE THE U.S.
PASSCODE: 40375724ABOUT JAVER
THE COMPANY IS THE LARGESTHOUSING DEVELOPMENT COMPANY IN MEXICO
REGARDING THE NUMBER OF UNITS SOLD THROUGH THE INFONAVIT LENDING
SYSTEM IN 2015, ACCORDING TO THE REPORT OF LOANS GRANTEDBY
DEVELOPER PUBLISHED IN INFONAVIT'S WEBSITE (REPORTE DE CRDITOS POR
OFERENTE). THE COMPANY HAS PRESENCE IN THE STATES OF NUEVO LEN,
JALISCO, QUERTARO, ESTADO DE MXICO, AGUASCALIENTES, QUINTANA ROO,
TAMAULIPAS, AND RECENTLY IN MEXICO CITY.
THE COMPANY OFFERS THREE HOUSING SEGMENTS IN TERMS OF COST: (I)
AFFORDABLE ENTRY LEVEL (AEL), (II) MIDDLE INCOME AND (III)
RESIDENTIAL HOUSING. AS OF DECEMBER 31, 2015 REVENUES FROM AEL
SEGMENT WEREPS. 1,301.1 MILLION, MIDDLE INCOME SEGMENT OF
PS.3,601.8 MILLION AND RESIDENTIAL SEGMENT OF PS.1,337.9 MILLION;
WHICH REPRESENTED 20.1%, 55.8%, 20.7% OF TOTAL REVENUES,
RESPECTIVELY. AS OF DECEMBER 31, 2014 REVENUES FROM AEL SEGMENT
WERE PS.2,106.9 MILLION, MIDDLE INCOME SEGMENT OF PS.2,882.1
MILLION AND RESIDENTIAL SEGMENT OF PS.910.5 MILLION; WHICH
REPRESENTED 34.8%, 47.6%, 15.0% OF TOTAL REVENUES, RESPECTIVELY. AS
OF DECEMBER 31, 2013 REVENUES FROM AEL SEGMENT WERE PS.1,930.5
MILLION, MIDDLE INCOME SEGMENT OF PS.2,690.4 MILLION AND
RESIDENTIAL SEGMENT OF PS.691.8 MILLION; WHICH REPRESENTED 35.6%,
49.6%, 12.8% OF TOTAL REVENUES, RESPECTIVELY.
DISCLAIMER
THIS PRESS RELEASE MAY INCLUDE FORWARD-LOOKING STATEMENTS. THESE
STATEMENTS RELATE TO PROJECTIONS, FUTURE DEVELOPMENTS AND BUSINESS
STRATEGIES AND CAN BE IDENTIFIED BY THE USE OF TERMS AND PHRASES
SUCH AS "ANTICIPATES," "BELIEVES," "CAN," "WILL," "ESTIMATES,"
"EXPECTS," "PREVENTS", "INTENDS", "PRETENDS", "MAY", "PLANS","
PREDICTS", "PROJECTS", "AIMS", "STRATEGY" AND SIMILAR TERMSAND
PHRASES, AND MAY INCLUDE REFERENCES TO ASSUMPTIONS. THESE
FORWARD-LOOKING STATEMENTS INCLUDE, WITHOUT LIMITATION, THOSE
REGARDING THE COMPANY'S FUTURE FINANCIAL POSITION AND RESULTS OF
OPERATIONS, THE COMPANY'S STRATEGY, PLANS, OBJECTIVES, GOALS AND
TARGETS, FUTURE DEVELOPMENTS IN THE MARKETS IN WHICH THE COMPANY
PARTICIPATES OR ARE SEEKING TO PARTICIPATE OR ANTICIPATED
REGULATORY CHANGES IN THE MARKETS IN WHICH THE COMPANY OPERATES OR
INTENDS TO OPERATE.
THE COMPANY CAUTIONS POTENTIAL INVESTORS THAT FORWARD LOOKING
STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND ARE BASED
ON NUMEROUS ASSUMPTIONS AND THAT THECOMPANY'S ACTUAL RESULTS OF
OPERATIONS, INCLUDING THE COMPANY'S FINANCIAL CONDITION AND
LIQUIDITY AND THE DEVELOPMENT OF THE MEXICAN MORTGAGE FINANCE
INDUSTRY,MAY DIFFER MATERIALLY (AND MAY BE MORE NEGATIVE THAN) FROM
THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS PRESS RELEASE. IN
ADDITION, EVEN IF THE COMPANY'S RESULTS OF OPERATIONS ARE
CONSISTENT WITH THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS
PRESS RELEASE, THOSE RESULTS OR DEVELOPMENTS MAY NOT BE INDICATIVE
OF RESULTS OR DEVELOPMENTS IN SUBSEQUENT PERIODS.
THESE FORWARD-LOOKING STATEMENTS SPEAK ONLY AS OF THE DATE OF THIS
PRESS RELEASE AND THE COMPANY ASSUMES NO OBLIGATION TO REVISE OR
UPDATE ANY FORWARD-LOOKING STATEMENT, WHETHER AS A RESULT OF NEW
INFORMATION OR NEW EVENTS OR DEVELOPMENTS OBLIGATION. MORE DETAILED
INFORMATION ON THESE AND OTHER FACTORS IS INCLUDED IN THE OFFER TO
PURCHASE.
WWW.JAVER.COM.MXSOURCE: SERVICIOS CORPORATIVOS JAVER, S.A.B. DE
C.V.
AV. JUREZ NO. 1102COLONIA CENTRO, 64000
MONTERREY, NUEVO LEN, MXICO