Urbi 1Q 2011: Progress on Business Plan with Growth, Margins and Cash Flow Generation

MEXICALI, Mexico, May 3, 2011 /PRNewswire/ -- Urbi Desarrollos Urbanos, SAB de CV, announced its 1Q11 earnings results in line with its strategy of profitable growth with cash flow generation.

The company reported in 1Q11:

• Revenues of MX$2,832.8 million, 17.1% growth versus 1Q10.
  • 87% from the housing development business line and
  • 13% from the housing related activities business line
• EBITDA of MX$757.8 million, with a margin of 26.8%
• Net Income of MX$216.6 million, with a margin of 7.6%
• Cash balance of MX$6,032.6 million, 47.3% higher than 1Q10.

Selene Avalos, Urbi's CFO, commented: "In line with our strategy of profitable growth with FCFE for 2011, during 1Q11 we delivered strong growth and maintained a strong liquidity position, which represents one of the pillars of our strategy for 2011, as it grants us with the flexibility to take advantage of the opportunities available during today's market conditions".

"In addition, we continued with our leadership in operating margins, thanks to the efficiencies of our business model, and the benefits from having the most diversified portfolio of products and services in the industry. Our housing related activities business line contributes to revenues, but more notably, to margins and FCFE generation, thanks to lower costs and working capital needs"

Cuauhtemoc Perez, Urbi's CEO, added: "In line with the strategic framework for 2011-2015, we will continue focusing on a profitable growth with FCFE generation by taking advantage of Urbi's competitive advantages for the development of economic, vertical and sustainable housing that guarantees ongoing access to the program of subsidies; such as it is the case for our DUIS Valle San Pedro project, which –in addition to the main program of subsidies- gives us access to the extraordinary budget of subsidies for DUIS certified projects of MX$300 million."

"Urbi's strategy for 2011 is to continue generating profitable growth with a strong focus on liquidity through the organic development of homes and the integration of housing projects in progress, and with the important contribution from the housing related activities business line. The company estimates a revenue growth of 12-14%, maintain an Ebitda margin of around 27% and strong cash flow generation".  

Urbi Desarrollos Urbanos S.A.B. de C.V. (MSE: URBI*) is the leading housing developer in Mexico. Currently, Urbi is present in 35 cities, covering the main metropolitan areas and the most dynamic medium-size cities in the country. In over 29 years of operations, Urbi has developed over 370,000 homes, and has always conducted its business with a strong emphasis on financial performance, making it one of the most profitable companies in the sector.

Contact:

Antonio Jorge
Investor Relations Manager
URBI Desarrollos Urbanos, SA de CV
Rio Danubio # 109
Colonia Cuauhtemoc
06500 Mexico DF,
Telephone: 011 52 55 11020390x10724
E-mail: [email protected]

SOURCE Urbi Desarrollos Urbanos S.A.B. de C.V.

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