Javer Announces Select Preliminary Results for Full-Year and Fourth Quarter 2012

Javer Announces Select Preliminary Results for Full-Year and Fourth Quarter 2012

MONTERREY, Mexico--(BUSINESS WIRE)-- Servicios Corporativos Javer S.A.P.I. de C.V., ("Javer" or "the Company"), one of the largest privately-owned housing development companies in Mexico, today announced select preliminary results for the full-year and fourth quarter 2012 periods. Javer will publish the Company's full earnings release February 25, 2013, and host a conference call to discuss the Company's results Tuesday, February 26, 2013 at 11:00 a.m. Eastern Time, 10:00 a.m. Mexico City/Monterrey time. Conference Call details will be included in the Company's full earnings release.

During 2012, Javer sold 17,533 units. Low income sales represented 60.1% of total units sold, while the middle income and residential segment contributed 37.6% and 2.3%, respectively, to the sales mix. Total revenues reached Ps. 5,090.4 million, of which housing revenues were Ps. 4,729.4 million and commercial lot sales were Ps. 361.0 million. Regarding EBITDA, Javer reported 2012 EBITDA of Ps. 727.7 million. As of December 31, 2012, Javer reported Ps. 416.9 million in cash, as well as total debt and net debt of Ps. 2,974.9 and Ps. 2,558.0 million, respectively.

The fourth quarter 2012 was difficult from a comparison point-of-view vis-à-vis fourth quarter 2011. Delays in the expected availability of subsidies in Javer's target markets affected titling capacity during the quarter, along with sluggish demand in the middle income segment, which historically tends to increase during the fourth quarter. Despite these challenges, Javer generated positive free cash flow of Ps. 105.9 million during 2012 without affecting the Company's important goal of maximizing return on invested capital, which continues to be the highest among industry peers.

In terms of 2013 guidance, Javer is including the addition of ViveICA's housing assets, a subsidiary of Empresas ICA, S.A.B. de C.V. On a pro-forma basis, the Company expects to reach Ps. 8.0 billion in revenues, and deliver an absolute level of EBITDA of approximately Ps. 1.2 billion on sales of 26,000 homes. Javer expects to maintain this performance with neutral to slightly positive FCF for 2013. It is important to emphasize that the ViveICA transaction will strengthen Javer's current market presence and provide geographic diversification as the Company will be present in six new cities, in five states.

Additionally, during 2013, Javer expects to improve from a sales mix perspective, which along with higher average prices at new projects and a reduction in SG&A based on potential synergies will help to increase profitability. The Company's key metrics such as EBITDA to interest expense coverage ratio and debt to EBITDA will improve. Taken together, these results will improve Javer's pre-tax ROIC, which will strongly position the Company, while maintaining Javer's best-in-class status within the Mexican homebuilding industry.

Regarding the ViveICA transaction, Javer successfully secured a term loan to finance the Ps. 600 million project debt. After evaluating several proposals from various financial institutions, the Company signed a final agreement with Banco Santander Mexico S.A. Institución de Banca Múltiple, Grupo Financiero Santander. Once the ViveICA transaction closes, Javer will seek optimal timing and conditions to engage in a capital markets transaction that will continue the Company's strategy of maintaining a strong credit and liquidity profile. The Company expects to close the transaction by the end of first quarter 2013.

About Javer

Servicios Corporativos Javer S.A.P.I. de C.V. is one of the largest privately-owned housing development companies in Mexico, specializing in the construction of low-income, middle income and residential housing in the Northern region of Mexico. The Company, which is headquartered in the city of Monterrey, in the state of Nuevo Leon, began operations in 1973 and is the region's leading housing developer in terms of units sold, the second-largest supplier of Infonavit homes in the country, and has a 15% market share in the state of Nuevo Leon, as of December 2012. The Company operates in the states of Nuevo Leon, Aguascalientes, Tamaulipas, Jalisco, Queretaro, and State of Mexico.

During 2011, the Company reported revenues of Ps. 4,718.9 million (US$ 337.5 million) and sold a total of 16,339 units.

Disclaimer:

This press release may include forward-looking statements. These forward-looking statements include, without limitation, those regarding Javer's future financial position and results of operations, the Company's strategy, plans, objectives, goals and targets, future developments in the markets in which Javer participates or are seeking to participate or anticipated regulatory changes in the markets in which Javer operates or intends to operate.

Javer cautions potential investors that forward looking statements are not guarantees of future performance and are based on numerous assumptions and that Javer'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 from the forward-looking statements contained in this press release. In addition, even if Javer'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.

Important factors that could cause these differences include, but are not limited to: risks related to Javer's competitive position; risks related to Javer's business and Company's strategy, Javer's expectations about growth in demand for its products and services and to the Company's business operations, financial condition and results of operations; access to funding sources, and the cost of the funding; changes in regulatory, administrative, political, fiscal or economic conditions, including fluctuations in interest rates and growth or diminution of the Mexican real estate and/or home mortgage market; increases in customer default rates; risks associated with market demand for and liquidity of the notes; foreign currency exchange fluctuations relative to the U.S. Dollar against the Mexican Peso; and risks related to Mexico's social, political or economic environment.

For Servicios Corporativos Javer S.A.P.I. de C.V.
Investor Relations:
Felipe Loera, +52 (81) 1133-6699 Ext. 6468
CFO
floera@javer.com.mx
or
Veronica Lozano, +52 (81) 1133-6699 Ext. 6515
Investor Relations
vlozano@javer.com.mx

KEYWORDS: United States Mexico North America Central America New York

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