QUARTERLY REPORT 2Q17

Transcription

1 QUARTERLY REPORT 2Q17 Persistently advancing to strengthen our profitability and business model 1

2 SARE REPORTS 25% GROWTH IN HOMES SOLD REVENUE AND EBITDA OF PS.9 MILLION IN 2Q17 Mexico City, July 28, Sare Holding, S.A.B. de C.V. (BMV: SARE), a housing development company, announced today its earnings results for the second quarter The figures presented in this report are expressed in nominal Mexican pesos, are preliminary and unaudited, prepared in accordance with IFRS and the current interpretations, and may include minor variations due to rounding. OPERATIONAL AND FINANCIAL HIGHLIGHTS Operation and Income Statement A total of 311 homes were titled in 2Q17 vs. 166 in 2Q16, representing almost a tripledigit increase (+87.3% YoY), mainly derived from the increase in the maximum credit amount granted by Infonavit The average consolidated sale price decreased 33.2% YoY, reaching $322 thousand pesos, derived from a greater participation of ChacMool (208 units, 67%) in this quarter's revenues. It is important to emphasize that these sales are recorded at half of the price, since it is a joint venture project Homes sold revenue grew 25.2% in 2Q17, primarily driven by a higher volume of sales due to the implementation of new guidelines on the operation of loans granted by Infonavit, as well as a greater contribution from the middleincome residential segment to the sales mix, accounting for 19.5% of home sold revenue in 2Q17 vs. 10.1% in 2Q16. LTM home sold revenue grew by 35.9%; comparing $402 million pesos in LTM at 2Q17 with $296 million pesos in LTM at 2Q16 In the second quarter of 2017, the cost of sales decreased 12.9% YoY, mainly derived from the recognition of the cost of nonstrategic assets sold in 2Q16. Yeartodate, cost of sales increased 0.9% vs. the same period last year. On the other hand, gross profit reached $24.8 million pesos in 2Q17, increasing 84.7% vs. 2Q16, following a 11.3 pp gross margin expansion, which stood at 24.7%. LTM gross profit increased 64.7% YoY 2Q17 EBITDA was $9 million pesos, increasing 235.9% vs. 2Q16, continuing the positive performance, driven by the Company's operational progress and the lower proportion of administrative and sales expenses. LTM EBITDA increased by 280.3% YoY in 2Q17 vs. the same period last year, going from a negative generation of $10 million pesos in the LTM at 2Q16 to a generation of $18 million pesos in LTM EBITDA to this quarter; reflecting the operational stabilization of the Company Gross profit and EBITDA recorded outstanding growths, despite the increase in the prices of construction materials In 2Q17 we recorded a net loss of $29 million pesos compared to the $13 million pesos loss in 2Q16, mainly due to the recognition of other expenses and financial expenses associated with the Company's debt service obligations, which was partially offset by a positive income tax effect Financial Position At the end of 2Q17, SARE recorded $2,409 million pesos in total assets, mainly comprised by $1,175 million pesos in inventories As of June 30, 2017, the inventory was ready for the development of almost 8,000 homes, primarily located in the "diamante de Mexico 1 " The financial debt decreased $66 million pesos, from $772 million pesos in 2Q16 to $706 million pesos at the end of 2Q17 (8.6% YoY) 1) The diamante de Mexico is located in the Mexico Valley, Queretaro, Jalisco, Guanajuato, San Luis Potosi and Puebla, where is concentrated 54% of the population, accounting for 43% of the country's Gross Domestic Product (GDP). 2

3 QUARTERLY HIGHLIGHTS (thousands of MXP) 2Q17 2Q16 % LTM 2T17 LTM 2T16 Units Sold % % Consolidated Average Price (33.2%) (41.7) Homes sold revenue 100,245 80, % 402, , % Net Income (28,564) (13,049) (118.9%) (80,104) (18,863) (324.7%) EBITDA 8,735 (6,428) 235.9% 17,979 (9,970) 280.3% Gross profit / Sales 24.7% 13.4% 11.3 pp 23.7% 18.0% 5.7 pp Cost of Sales / Sales 75.3% 86.6% (11.3 pp) 76.3% 82.0% (5.7 pp) SG&A / Sales 16.0% 19.8% (3.8 pp) 19.2% 21.1% (1.9 pp) Operating Income / Sales 8.6% (6.6%) 15.2 pp 4.3% (3.3%) 7.6 pp EBITDA / Sales 8.7% (6.4%) 15.1 pp 4.5% (3.1%) 7.6 pp Other income (expenses) net / Sales (28.9%) (7.5%) (21.4 pp) (19.7%) 5.9% (25.6 pp) Leverage (PT/CC) 2.02x 1.52x 0.50x Current Liabilities / Current Assets 0.48x 0.38x 0.10x Total Liabilities / Total Assets 0.67x 0.60x 0.07x Gross Debt / LTM BITDA 39.28x (77.47x) Net Debt / LTM EBITDA 32.58x (65.68x) ROA (2.1%) (0.7%) ROE (6.4%) (1.7%) % 3

4 COMMENTS FROM THE CHIEF EXECUTIVE OFFICER The second quarter of the year represents a period of transition into a second half of higher traction, primarily due to the normalization of homes sold in our developments; following the increase in the credit limit offered by Infonavit. And, at the same time, we continued advancing in our initiatives focused on strengthening our financial position through the consecution of greater sources of funding and the deleveraging of the balance sheet. In pursuit of strengthening our financial position, in compliance with the mandates emanated from our Shareholders' Meeting held on last April 28, the Company started a capitalization process by subscribing $81.4 million pesos in equity (57.3%), of the $142 million pesos approved by the Shareholders Meeting, which will allow us to bolster and accelerate the construction and commercialization of our new developments on available land banks. Regarding the deleveraging of our Company, SARE continued the amortization of its interestbearing debt during 2Q17, which decreased $66 million pesos YoY, contributing to the reduction of approximately 50% of the same in less than 3 years. This will be reflected in the gradual decrease of the company's financial costs; offsetting the rising interest rates environment that is prevailing in Mexico, thus granting us a better positioning to achieve a positive net result. As a result of the implementation of new operational guidelines related to the increase in the credit limit offered by Infonavit, homes sold were boosted during the quarter, reaching a total of 311 vs. 194 in 1Q17 and 166 in 2Q16. Consequently, and coupled with the country's revitalized growth prospects for this year, wherein the sector s outlook has also been strengthened, we expect to register greater dynamism for 2H17, which will be solidified with the addition of the developments in Toluca and Montenegro to our housing offer; validating our focus on the central area of Mexico. Moving into the quarterly results, we achieved a notable increase of 25.2% YoY in 2Q17 home sold revenue, totaling $100 million pesos, mainly derived from the agile commercialization of homes, by taking advantage of the revised credit guidelines of Infonavit, which also allowed us to increase the participation of the middle residential segment in consolidated home sold revenue, to a 19.5%. This result paves the way towards the achievement of our 2017 Guidance estimates, as reflected in our accumulated EBITDA this year, which is on positive ground, generating $13 million pesos from the $1 million pesos EBITDA in 1H16, also reflecting the progress made in our operational structure. Finally, I would like to emphasize i) the consolidation of our administrative structure, ii) our solid land bank with the development outreach of 8,000 homes and iii) the strengthening of our financial position and liquidity, provide us with the impetus needed to continue advancing in our business plan and in the operational and financial stability program, which we expect to be shown in SARE's successful return to a leadership position in the Mexican housing sector, with an attractive profitability for our shareholders. Víctor Eduardo Pérez Orozco, Chief Executive Officer 4

5 OPERATING RESULTS TOTAL REVENUE Total revenue reached $100 million pesos, in line with those reached in 2Q16. It is important to note that in 2Q16 the Company recognized a sale of nonstrategic assets in the amount of $20 million pesos. Excluding this effect, total revenue would have increased 25.2% YoY Total Revenues (million of MXP) Q16 2Q17 1H16 1H17 HOMES SOLD REVENUE Homes sold revenue reflect the greater dynamism achieved by the Company during the quarter, continuing with consistent growth and reaching an increase of 25.2% vs. 2Q16 totaling $100 million pesos. This performance is primarily due to the boost in units sold from the affordable entrylevel segment and the higher participation of middleincome homes in the sales mix. Yeartodate, homes sold revenue increased 19.7% Home sale revenues (million of MXP) Q16 2Q17 1H16 1H17 LTM homes sold revenue increased 35.9% YoY, totaling $402 million pesos LTM Home sale revenues (million of MXP) Q16 2Q17 5

6 UNITS SOLD Units sold registered an important upturn in 2Q17, increasing 87.3% compared to 166 homes sold in 2Q16, reaching a recordhigh in the last 6 quarters of operations. New projects were incorporated into our current housing offering of 13 developments, including those we are startingup in Toluca, Estado de Mexico, and Montenegro, Queretaro, both part of the affordable entrylevel segment, as well as Yikal in Quintana Roo, which is a middleincome development. OTHER REVENUE Units Sold Q16 3Q16 4Q16 1Q17 2Q17 In 2Q17, the Company did not record other revenue. On the other hand, a sale of nonstrategic assets for $2o million pesos was registered in 2Q16. MARKETS AND SEGMENTS In 2Q17, the Company sold 14 middleincome residential homes and 297 affordable entrylevel homes, compared with 8 middleincome residential and 158 affordable entrylevel in the same period last year. % Units Middleincome residential 5% Affordable entrylevel 95% 0% 20% 40% 60% 80% 100% Revenues (million of MXP) In 2Q17, 19.5% of our revenue was originated from the middleincome residential segment and 80.5% from the affordable entrylevel, while the 2Q16 mix was 10.1% and 89.9%, respectively. Middleincome residential Affordable entrylevel 19,534 40,000 80,000 80,711 Quintana Roo was the market with the largest participation in units sold during the quarter, with 68% of the total, derived from a greater contribution of ChacMool (Cancun), our development in JV. In Q. Roo is also located the middleincome residential development of Kaan. Q. Roo was followed by Puebla and Guanajuato, with 13% each. Markets (% units sold) Metropolitan Area 5% Quintana Roo Puebla 13% Guanajuato 13% Querétaro 2% 68% 0% 50% 100% 6

7 The following chart shows the breakdown of units sold in each segment and its corresponding revenue: UNITS 2Q17 % 2Q16 % Ch.% 1H17 % 1H16 % Ch. % Affordable entrylevel % % 88.0% % % 80.5% Middleincome residential % 8 4.8% 75.0% % % 150.0% Total % % 87.3% % % 83.0% REVENUE (thousands of MXP) 2Q17 % 2Q16 % Ch.% 1H17 % 1H16 % Ch. % Affordable entrylevel 80, % 71, % 12.2% 158, % 149, % 6.0% Middleincome residential 19, % 8, % 141.7% 35, % 12, % 179.5% Total 100, % 80, % 25.2% 193, % 161, % 19.7% AVERAGE PRICES The average price of our middleincome residential homes was $1.4 million pesos in 2Q17, while affordable entrylevel reached $271.8 thousand. Our average consolidated price in 2Q17 decreased to $322.3 thousand pesos from $482.5 thousand pesos in 2Q16. Average sale price by segment (thousands of MXP) Middleincome residential Average consolidated price Affordable entrylevel , ,000 1,500 Average sale prices evolution (thousand of MXP) Q16 3Q16 4Q16 1Q17 2Q17 7

8 FINANCIAL PERFORMANCE INCOME STATEMENT COST OF SALES Cost of sales in the second quarter of 2017 reached $76 million pesos, decreasing 12.9% vs. 2Q16. This was mainly due to the recognition of the cost of sale of $20 million pesos worth of nonstrategic assets in 2Q16. Without considering this operation, the Cost of Sales would have increased 13.2%, below than the increase proportion of homes sold revenue, which would have led to a decrease in the cost of homes build to home sale revenue ratio of 8.0 percentage points against 2Q16, reaching 75.3% from 83.3% in 2Q Million of MXP 87 2Q Q17 GROSS PROFIT Gross profit registered an increase of $11.4 million pesos, going from $13.4 million pesos in 2Q16 to $24.8 million pesos in 2Q17, originating from the lower proportion of cost of sales to home sold revenue. The gross margin expanded by 11.3 pp YoY, reaching 24.7% at quarterend. Excluding the sale of strategic assets, the margin would have increased by 8.0 pp Gross Profit (million of MXP) Q16 2Q17 1H16 1H17 LTM gross profit totaled $95 million pesos (+64.7% YoY), while gross margin stood at 23.7%. LTM Gross Profit (million of MXP) Q Q17 8

9 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Q16 3Q16 4Q16 1Q17 2Q17 SG&A as a % of Sales Million of MXP 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Selling, General and Administrative Expenses (SG&A) amounted to $16 million pesos, decreasing 19.2% compared to the figure registered in 2Q16, and in line vs. 1Q17. Additionally, SG&A represented 16.0% of sales during the second quarter, 3.8 percentage points below the proportion registered in 2Q16 and in line with 1Q17; showing the operational stabilization of the Company. EBITDA In 2Q17, EBITDA continued on positive ground, amounting $9 million pesos, in contrast to the negative figure of $6 million pesos registered in 2Q16; following a higher volume of sales that lead to greater revenue and improved margins. Yeartodate, EBITDA generation was $13 million pesos vs. $1 million pesos in 1H EBITDA (million of MXP) Q16 2Q17 1H16 1H17 LTM, we reached an EBITDA of $18 million pesos, which is positively compared with the negative EBITDA of $10 million pesos at 2Q16. The Company's EBITDA generation has been rising, and operating on positive ground through the recent quarters. 20 LTM EBITDA (million of MXP) Q Q17 9

10 OPERATING INCOME Operating income totaled $9 million pesos in 2Q17 compared with a loss of $7 million pesos in 2Q16. The operating margin reached 8.6% in 2Q17; benefiting from the same effects reflected in EBITDA. Operating Income (million of MXP) Q16 2Q17 1H16 1H17 LTM operating income amounted to $17 million pesos compared with a loss of $11 million pesos in the same period last year. 20 LTM Operating Income (million of MXP) Q Q17 COMPREHENSIVE FINANCIAL RESULT The comprehensive financial result reached $19 million pesos, an increase against the $4 million pesos of 2Q16. This increase was primarily due to interest expenses associated to the last stage of our debt restructuring, as well as the rise in the interest rate as we have 100% of our debt contracted at a floating rate % 20% 15% 10% 5% 0 2Q16 3Q16 4Q16 1Q17 2Q17 0% Million of MXP as % of Sales 10

11 INCOME TAXES Income tax showed a positive effect of $11 million pesos in 2Q17, while in 2Q16 the positive effect was $5 million pesos. NET INCOME In 2Q17, the Company recorded a net loss of of $29 million, mainly due to other expenses, as well as extraordinary notary and financial expenses during the quarter, which were partially offset by the positive effect on income tax. Net Income (million of MXP) Q16 2Q17 1H16 1H17 It is important to point out that the Company's net income has been fluctuated following the effects related to the debt restructuring; expecting a complete normalization during the next 2 years, as well as a continuous quarteronquarter enhancement. STATEMENT OF FINANCIAL POSITION ASSETS Total assets have remained stable during the second quarter of 2017, increasing slightly vs. 4Q16, due to a greater scale of operations resulting from a higher number of projects under development. It is important to note that the book value of inventory was reviewed at the end of fiscal year 2016, with the objective of accurately reflect its operational and cash flow generation capacity at reasonable market value. 2,700 2,500 2,300 2,100 1,900 1,700 2,484 2,371 2,409 1,500 Million of MXP 2Q16 4Q16 2Q17 11

12 CASH AND CASH EQUIVALENTS The cash balance at the end of the second quarter of the year reached $120 million pesos, increasing 2.4% YoY, of which 79% is restricted, being available only for approved projects in the HSBC trust, such as the project started in Toluca. The restriction is derived from the of bank liabilities restructure with this financial institution. WORKING CAPITAL TURNOVER Working capital turnover in 2Q17 was 0.25x, an increase of 0.14x vs. 2Q16, explained by the increase in homes sold Q16 3Q16 4Q16 1Q17 2Q17 INVENTORIES The balance of inventories as of June 30, 2017 increased to $1,175 million pesos, growing 11.8% vs. the balance at the end of 2Q16. And, with capacity to develop almost 8 thousand units in areas of high economic and demographic dynamism. 1,300 Inventories (million of MXP) 1, ,051 2Q16 1,175 2Q17 LOCATION OF LAND BANK AND WORKS IN PROGRESS METROPOLITAN AREA GUANAJUATO QUINTANA ROO PUEBLA QUERETARO 12

13 State Units Remaining Middleincome Affordable entrylevel residential Metropolitan Area 1, Guanajuato 921 Puebla 1,340 Queretaro 3, Quintana Roo Total 7, DEBT LTM, interestbearing debt was reduced by 8.6% with the amortization of $66 million pesos, thus decreasing from $772 million pesos as of June 30, 2016 to $706 million pesos as of June 30, As a result, the Company's financial flexibility has been enhanced. 1,200 1, , Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Million of MXP Balance at 2Q17 Currency Interest Rate Maturity HSBC 394 MXP TIIE Mar19 BBVA BANCOMER 43 MXP TIIE Sep20 CITIBANAMEX 116 MXP TIIE Sep19 BANORTE 29 MXP TIIE Jun19 CONCRECES 15 MXP TIIE Dic17 DEBT CERTIFICATE 109 MXP TIIE Jul24 TOTAL $706 Million of MXP As of June 30, 2017, 2.1% of our total debt has a maturity of 1 year or less, and 76.3% matures within the next 3 years. SARE is in a permanent search for more competitive and appropriate rates for its projects. 100% of the Company s debt is contracted in MXP. 13

14 Debt Maturity 22% 2% 76% SHAREHOLDERS EQUITY >2020 As of June 30, 2017, shareholders equity amounted to $797 million pesos, decreasing 19.3% vs. the figure registered as of June 30 last year. This decrease is due to the losses generated in the last twelve months, primarily from nonrecurrent and nonmonetary items which did not imply a cash flow for the Company. FREE CASH FLOW (Million of MXP) 2Q17 2Q16 1H17 1H16 EBITDA 9 (6) 13 1 Change in accounts receivable 5 42 (5) (9) Change in inventory Change in other assets (4) (20) (17) 10 Change in accounts payable (2) Change in other liabilities Free Operating Cash Flow Minus: Interests (19) (4) (39) (13) Minus: Income tax (33) 2 (41) (5) Minus: Dividends Free Cash Flow (31) 115 In 2Q17 a positive free cash flow of $7 million pesos was recorded, while in 2Q16, a flow of $125 million pesos was generated. ******************************* 14

15 2017 GUIDANCE Following the results obtained at the end of the second quarter of the year, and considering the greater dynamism of the 2H17, we reiterate the estimates of our 2017 Guidance: 50% growth in total revenues YoY Positive and stable EBITDA generation A solid financial position, with a healthy leverage RECENT EVENTS On July 19, 2017, SARE announced that shareholders that decided to exercise their subscription rights (Subscribing Shareholders) have subscribed and paid a total of 814,545,954 stock ($81.4 million pesos) in relation to the capital increase agreed at its Extraordinary General Shareholders Meeting held on April 28, Subscribing Shareholders may also exercise their "Right to Increase" within the period from July 21 to July 31, On June 26, 2017, SARE announced that it fulfilled all requirements requested by the National Banking and Securities Commission (CNBV by its acronym in Spanish) to proceed with the Company's capital increase of $142 million pesos, approved in the Shareholders Meeting held on April 28, The subscription period was set between July 3 and July 17, On April 28, 2017, an Extraordinary General Shareholders Meeting was held, in which the increase in shareholders' equity of the Company was approved, and to be conducted through the issuance of ordinary, nominative shares, with no par value, of series "B" shares, classi, in the amount of $142 million pesos. ABOUT SARE SARE is a housing development company differentiated by having a diverse offering of quality products that satisfy the needs and preferences of its clients. Its products cover economic housing, affordable entrylevel, middleincome, and middleincome residential. SARE has defined an outstanding business model, which is diversified by regions, segments and mortgage financing options for its clients. This strategy promotes great flexibility and allows the Company to adapt to the circumstances of the housing market. SARE is listed on the Mexican Stock Exchange under the tickersymbol "SAREB". FORWARDLOOKING STATEMENTS This document contains certain statements related to the general information of SARE HOLDING (SARE) regarding its activities to the present day. The information included in this document is a summary of information regarding SARE which is not intended to cover all related information about SARE. The information contained in this document has not been included in order to provide specific advice to investors. The statements contained herein reflect the current views of SARE with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause future results, performance or achievements of SARE to be different from those expressed or implied by such forwardlooking statements, including, among others, economic or political changes and global business conditions, changes in exchange rates, the overall level of the industry, changes in housing demand, prices of raw materials, etc. If one or more of these risks occur, or should the underlying assumptions prove to be incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated or expected. SARE does not intend nor assume any obligation to update the statements presented in this document. CONFERENCE CALL 15

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17 FINANCIAL STATEMENTS SARE HOLDING, S.A.B. DE C.V. Income Statement (thousands of Mexican pesos) 2Q17 2Q16 Ch.% 1H17 1H16 Ch.% Revenues 100, , % 193, , % Affordable entrylevel home sales 80,711 71, % 158, , % Middleincome residential home sales 19,534 8, % 35,584 12, % Nonstrategic asset sales 20,000 (100.0%) 20,000 (100.0%) Services and other 50 (100.0%) 50 (100.0%) Cost of sales 75,488 86,686 (12.9%) 149, , % From affordable entrylevel home sales 59,803 60,474 (1.1%) 120, , % From middleincome residential home sales 15,685 6, % 28,628 9, % From nonstrategic asset sales 20,000 (100.0%) 20,000 (100.0%) Gross profit (loss) 24,757 13, % 44,336 33, % Operating expenses (16,022) (19,835) 19.2% (31,544) (32,883) 4.1% Depreciation and amortization (155) (187) 17.1% (329) (373) 11.8% Operating income 8,580 (6,615) 229.7% 12, ,706.2% Other income (expenses) net (28,940) (7,532) (284.2%) (44,154) (11,851) (272.6%) Comprehensive Financial Result (19,258) (3,951) (387.4%) (38,553) (12,650) (204.8%) Earnings before tax (39,618) (18,098) (118.9%) (70,244) (23,811) (195.0%) Income tax (11,054) (5,049) (118.9%) (19,598) (6,643) (195.0%) Consolidated net income (28,564) (13,049) (118.9%) (50,646) (17,168) (195.0%) 17

18 SARE HOLDING, S.A.B. DE C.V. Statement of Financial Position (thousands of Mexican pesos) jun 17 jun 16 Ch. % Current assets 1,487,162 1,437, % Cash and shortterm investments 120, , % Accounts receivable 33,768 33, % Other accounts receivable 121,167 91, % Inventories 1,174,813 1,051, % Advance payments 24,737 31,114 (20.5%) Income tax by fiscal consolidation 12, ,619 (89.0%) Noncurrent assets 921,976 1,046,795 (11.9%) Furniture, equipment and others net 666 1,251 (46.8%) Deferred income tax 813, ,456 (10.3%) Deferred income tax by fiscal consolidation 107, ,088 (22.2%) Total assets 2,409,138 2,484,002 (3.0%) Current liabilities 710, , % Bank loans 14,689 64,992 (77.4%) Accounts payable to land suppliers and others 164, , % Customer advances 29,637 33,315 (11.0%) Sundry creditors and provisions 208,518 99, % Taxes payable 62,490 64,974 (3.8%) Income tax by fiscal consolidation 230, , % Noncurrent liabilities 902, ,337 (5.0%) Bank loans 582, ,923 (4.2%) Stock Certificates 109,051 99, % Labor obligations 354 1,025 (65.5%) Income tax by fiscal consolidation 210, ,923 (12.7%) Total liabilities 1,612,425 1,496, % Equity 1,506,548 1,506,548 Premium on issuance of shares 171, ,305 Retained earnings (875,103) (673,018) (30.0%) Fiscal year result (50,646) (17,168) (195.0%) Controlling interests 752, ,667 (23.9%) Noncontrolling interest 44,609 Shareholders equity 796, ,667 (19.3%) 18

19 Cash flows from operating activities: SARE HOLDING, S.A.B. DE C.V. Statement of Consolidated Cash Flow (thousands of mexican pesos) 2Q17 2Q16 1H17 1H16 Profit (loss) before income tax (39,618) (18,098) (70,244) (23,811) Items related to investing activities: Depreciation and amortization Asset retirements Interest paid 19,706 4,529 39,001 13,850 Interest received (448) (578) (448) (1,200) Other inflows (outflows) of cash Total (20,205) (13,960) (31,362) (10,788) Changes in: Accounts receivable 4,975 42,190 (5,137) (9,066) Inventories 19,497 27,652 1,798 50,848 Other assets (3,903) (20,424) (17,378) 9,695 Accounts payable (2,492) 2,669 4, Interest received ,200 Other liabilities 32,128 79,877 51,253 80,231 Income taxes paid 33,033 (1,903) 41,411 3,468 Net cash flows from (used in) operating activities 63, ,679 45, ,858 Investing activities: Investment in property, plant and equipment Advance payments Other payments (17) (43) (17) (43) Net cash flows (used in) investing activities (17) (43) (17) (43) Net cash flows available for financing activities 63, ,636 45, ,815 Financing activities Change in capital stock Bank loans and loan payment, net (17,478) (92,158) (27,547) (107,740) Stock Certificates, net Dividends paid Other inflows (outflows) of cash 44,609 Interest expense (19,943) (4,529) (38,820) (12,382) Net cash flow from (used in) financing activities (37,421) (96,687) (21,758) (120,122) Net increase (decrease) in cash and cash equivalents 26,043 19,949 23,962 5,693 Cash and cash equivalents at beginning of period 94,359 97,646 96, ,902 Cash and cash equivalents at end of period 120, , , ,595 19