MEXICO CITY--(BUSINESS WIRE)--UNIFIN Financiera, S.A.B. de C.V. SOFOM, E.N.R. (“UNIFIN” or “the Company”) (BMV:UNIFIN) announced its financial results for the third quarter 2016 (“3Q16”) and first nine months 2016 (“9M16”). Figures presented throughout this document are expressed in millions of Mexican pesos (Ps.). Financial information has been prepared in accordance with the accounting criteria of the Mexican National Banking and Securities Commission (“CNBV”) and filed with the Mexican Stock Exchange (“BMV”).
- Revenues of Ps. 2,556.8 million, a 48.7% growth.
- Nominal financial margin of Ps. 605.2 million in the quarter. (25.3% of revenues in 9M16)
- Opex, as percentage of total revenues improved from 10.5% to 7.2% year-over-year.
- Operating income of Ps. 401.0 million, an increase of 12.9%.
- Net income increased 37.7% year-over-year, reaching Ps. 358.9 million.
- As of September 30, 2016 total loan portfolio reached Ps. 27,148.8 million, up 61.6% year-over-year.
- Net fixed assets and total assets increased 49.6% and 52.7%, respectively, by the end of the quarter.
- UNIFIN successfully completed a tender offer of approximately US$316.0 million of its outstanding Senior Notes due in 2019 (“2019 Notes”). In addition, the Company issued new debt for US$400.0 million with a 7-year maturity (“2023 Notes”), which enhance UNIFIN´s indebtedness maturity profile. The 2023 Notes were rated “BB” on the global scale by both Standard & Poor´s and Fitch Ratings.
Statement from the Chief Executive Officer:
Once again, UNIFIN was able to meet its quarterly expectations, despite the complex current international and domestic economic and political environments. During this quarter, noteworthy events included changes in the Mexican government’s cabinet members, specifically the resignation of the Minister of Finance. Additionally, there was volatility resulting from the U.S. presidential election campaign and its impact on the Mexican peso, which led to higher interest rates.
For this quarter we highlight the Tender Offer of approximately 86.2% of our outstanding 2019 Notes, and a successful new issuance of US$400.0 million, which significantly improved our debt maturity profile. The rationale behind this transaction was supported by the convergence of several elements, including: i) global appetite for Mexican securities, ii) the successful Tender Offer results, and iii) access to the mark-to-market valuation of the previous cross-currency swaps, that enhanced the new hedging conditions. These elements supported the transaction through the Company´s strict controls in accordance with our conservative risk management policy.
Regarding 3Q16 results, total revenues grew 48.7% year-over-year, with a 37.7% increase in net income. The Company’s operating lease portfolio increased by 58.9%, the factoring portfolio was up by 44.9% and the auto loans portfolio grew 86.7%. The total portfolio reached Ps. 27,148.8 million, a 61.6% increase compared to 3Q15, while maintaining the Company’s historical low NPL ratio, resulting in 0.60% at the close of the quarter.
Growth achieved during this period was driven by the Company´s pipeline, which has consistently generated new business opportunities. As a result, total revenue in 9M16 increased to Ps. 6808.3 million, up 45.1% year-over-year. In addition, UNIFIN’s recurring net income rose by 47.5%.
As always, UNIFIN aims to strategically position itself, in order to shield the Company from political and economic instability. Thus, and as a result of the measures taken prior to and throughout the quarter, UNIFIN is confident that it is prepared to successfully face future challenges that may result from global instability. We maintain our long term view of the industry, as well as our robust operations and strict portfolio management, which will enable the Company to remain a leader in the Mexican leasing market.
Luis Barroso, CEO of UNIFIN
UNIFIN is the leading independent Mexican leasing company, operating as a non-banking financial services company, specializing in three main business lines: operating leasing, factoring and auto and other lending. Through UNIFIN’s leasing business line, its core business line, the Company offers operating leases for all types of equipment and machinery, various types of transportation vehicles (including cars, trucks, helicopters, airplanes and other vessels) and other assets in a variety of industries. Through its factoring business line, UNIFIN provides liquidity and financing solutions to its customers by purchasing or discounting accounts receivable and by providing vendor financing. UNIFIN’s auto loans business line is focused on financing the acquisition of new and used vehicles.
UNIFIN Third Quarter 2016 Earnings Conference Call
Date: October 20, 2016
Time: 11:00 a.m. Eastern Time / 10:00 a.m. Mexico City Time
Presenting for UNIFIN:
Mr. Jose Maria Muñiz, Chief Institutional Relations Officer
Mr. Gerardo Mier y Terán, Corporate Chief Financial Officer
Mr. Sergio Camacho, Chief Financial Officer
Mr. David Pernas, Investor Relations Officer
To access the Conference Call, please dial:
1-800-311-9408 (U.S. participants)
0-1-800-847-7666 (Mexico participants)
1-334-323-7224 (International participants)
Conference ID Number: 32548
A replay of this call will be available for 30 days
To obtain the replay, please call:
1-877-919-4059 (U.S. participants)
1-334-323-0140 (International participants)
ID Number: 48726196