CEMEX Latam Holdings, S.A. ("CLH") (BVC: CLH), announced today that
consolidated net sales reached US$474 million during the third quarter
of 2013, an increase of 18% versus the pro forma third quarter of 2012.
Operating EBITDA increased by 24% during the quarter to US$168 million
versus the pro forma third quarter in 2012.
Carlos Jacks, CEO of CLH, said, “We are pleased by the strong results
reached in the third quarter. Given the high levels of construction
activity in the region, in many of our markets we sold record volumes of
our products. We are also satisfied by the positive results in our
housing solutions initiative in Colombia, as these projects are allowing
us to capture incremental value.”
CLH’s Financial and Operational Highlights
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The increase in consolidated net sales during the quarter resulted
mainly from higher volumes in most of our markets, along with the
effect from our housing solutions projects in Colombia.
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Operating EBITDA growth in the quarter was driven by higher volumes,
along with lower distribution expenses, lower maintenance costs and
lower fuel costs. On a year-over-year basis, operating EBITDA margin
during the quarter expanded in most of our markets.
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Our Construrama initiative in Colombia has continued its expansion. We
recently reached a total of 200 stores that have agreed to join the
program, with more than 110 already operating as Construramas.
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Free cash flow after maintenance capital expenditures during the
quarter reached US$91 million.
Carlos Jacks added, “Our high free cashflow generation in the quarter
was driven by the strong double-digit growth of operating EBITDA. We
expect to continue using our free cashflow generation to finance our
business strategy and our expansion projects.”
Consolidated Corporate Results
During the third quarter of 2013, controlling interest net income was a
gain of US$96 million.
Net debt reached US$1,345 million at the end of the quarter.
Geographical Markets Third Quarter 2013 Highlights
Operating EBITDA in Colombia increased by 22% to US$115 million
versus US$94 million in the third quarter of 2012, with an increase of
25% in net sales reaching US$287 million.
In Panama, operating EBITDA increased 33% reaching US$40 million
during the quarter. Net sales reached US$84 million in the third quarter
of 2013, an increase of 21% compared with the same period in 2012.
In Costa Rica, operating EBITDA reached US$17 million for the
quarter, 29% higher than the same period last year. Net sales increased
19% to US$40 million, compared with US$34 million in the third quarter
of 2012.
In the Rest of CLH net sales in the quarter reached US$65
million. Operating EBITDA in the quarter increased by 14%, versus the
comparable period in 2012, reaching US$18 million.
CEMEX Latam Holdings is a regional leader in the building solutions
industry that provides high-quality products and reliable service to
customers and communities in Colombia, Panama, Costa Rica, Nicaragua, El
Salvador, Guatemala, and Brazil. CEMEX Latam Holdings' mission is to
encourage the development of the countries where it operates through
innovative building solutions that foster well-being.
This press release contains forward-looking statements and
information that are necessarily subject to risks, uncertainties and
assumptions. Many factors could cause the actual results, performance or
achievements of CLH to be materially different from those expressed or
implied in this release, including, among others, changes in general
economic, political, governmental and business conditions globally and
in the countries in which CLH does business, changes in interest rates,
changes in inflation rates, changes in exchange rates, the level of
construction generally, changes in cement demand and prices, changes in
raw material and energy prices, changes in business strategy, changes
derived from events affecting CEMEX, S.A.B de C.V. and subsidiaries
(“CEMEX”) and various other factors. Should one or more of these risks
or uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described
herein. CLH assumes no obligation to update or correct the information
contained in this press release.
For convenience of the reader the 2012 pro forma consolidated
financial information was adjusted to reflect the additional results of
the operating subsidiaries for three and nine month periods ended
September 30, 2012 and reflect the 5% corporate charges and royalties
agreement entered into by CLH with CEMEX. Operating EBITDA is defined as
operating earnings before other expenses, net plus depreciation and
operating amortization. Free Cash Flow is defined as operating EBITDA
minus net interest expense, maintenance and expansion capital
expenditures, change in working capital, taxes paid, and other cash
items (net other expenses less proceeds from the disposal of obsolete
and/or substantially depleted operating fixed assets that are no longer
in operation). All of the above items are presented on a consolidated
basis in 2012 based on the financial statements of CLH’s subsidiaries
prepared under International Financial Reporting Standards as issued by
the International Accounting Standards Board. Operating EBITDA and Free
Cash Flow (as defined above) are presented herein because CLH believes
that they are widely accepted as financial indicators of CLH's ability
to internally fund capital expenditures and service or incur debt.
Operating EBITDA and Free Cash Flow should not be considered as
indicators of CLH's financial performance, as alternatives to cash flow,
as measures of liquidity or as being comparable to other similarly
titled measures of other companies.
Copyright Business Wire 2013