Hoteles City Express Announces Results for the First Quarter of 2015

Hoteles City Express Announces Results for the First Quarter of
2015
Mexico D.F., April 22, 2015 – Hoteles City Express S.A.B. de C.V. (BMV: HCITY) (“Hoteles
City Express” or “the Company”), announced its results today for the first quarter (“1Q15”)
of 2015. The figures have been prepared in accordance with International Financial
Reporting Standards (“IFRS”) and are presented in Mexican Pesos (“$”).
Financial and Operating Highlights (1Q15)

Total revenues came to $376.4 million, an increase of 21.0% over the same period in
2014, mainly due to a 19.9% rise in Occupied Room Nights at the Chain level,
combined with growth of 10.2% in Revenue per Available Room (“RevPAR”).

Operating Income was $58.6 million in 1Q15, an increase of 28.6% over the same
quarter of the prior year.

EBITDA and Adjusted EBITDA were $118.8 million and $120.7 million respectively,
increases of 24.1% and 21.3%, over the same period a year earlier. EBITDA margin and
Adjusted EBITDA margin for the period were 31.6% and 32.1%, respectively.

Net Income for the period rose to $45.2 million, an increase of 171.4% over the 1Q14.
Net Income Margin came to 12.0% for the quarter.

At the Chain level, occupancy for 1Q15 reached 57.1%, 185 basis points (“bps”)
ahead of the same period a year earlier. Average Daily Rate (“ADR”) and RevPAR
showed increases of 6.6% and 10.2% over the prior corresponding period, at $762 and
$435 respectively.

At the close of the quarter, the Chain was operating 96 hotels, a gain of 11 new units
compared to 85 hotels at the close of the same period in 2014. The number of rooms
in operation in 1Q15 was 10,929, a gain of 13.0% compared to the 9,670 rooms that
were operating at the close of 1Q14.
CONTACT FOR INVESTOR RELATIONS:
Abelardo Loscos
Director of Investor Relations
Phone: + (5255) 5249-8050 ext. 1810
E-mail: [email protected]
Jane
Searle
Jane
Searle
MBS
Value
Partners
MBS
Value
Partners
Tel:Phone:
+ 1 (212)
9686
+ 1710
(212)
710 9686
E‐mail:
[email protected]
E‐mail:
[email protected]
Quarterly Report 1Q15
Operating and Financial Highlights
1Q15 v s 1Q14
1Q15
1Q14
Number of Hotels at the End of the Period
Number of Rooms at the End of the Period
96
10,929
85
9,670
12.9%
13.0%
Number of Installed Room Nights
Number of Occupied Room Nights
982,744
561,135
846,882
467,901
16.0%
19.9%
57.1%
762
435
55.2%
714
395
185 pbs
6.6%
10.2%
Consolidated Financial Information (Thousands of Pesos)
Total Rev enues
376,394
311,151
21.0%
Operating Income
Operating Income Margin
58,595
15.6%
45,548
14.6%
28.6%
93 pbs
Adjusted EBITDA
Adjusted EBITDA Margin (%)
120,699
32.1%
99,510
32.0%
21.3%
9 pbs
EBITDA
EBITDA Margin (%)
118,770
31.6%
95,670
30.7%
24.1%
81 pbs
Net Income
Net Income Margin (%)
45,179
12.0%
16,644
5.3%
171.4%
665 pbs
% Change
Operating Statistics for the Chain
Av erage Occupancy Rate (%)
ADR ($)
Rev PAR ($)
Adusted EBITDA = Operating Income + depreciation + amortization + non-recurring expenditures (pre-opening expenditures for new
hotels).
Comments of the Chief Executive Officer
Luis Barrios, Chief Executive Officer of Hoteles City Express, commented:
“We are proud to announce our results for the first quarter of 2015, which show
double digit growth in RevPAR, Revenues, Operating Income, Adjusted EBITDA
and Net Income. Importantly, the strengthening trend in the Chain's key metrics
of occupancy and rate continued during the period. Looking ahead, we are
focused on building upon the positive track record of our key operating metrics
and reaching the goals outlined for our development plan and new hotel
openings.
During the quarter, Hoteles City Express remained positioned as the leading hotel
chain in Mexico’s limited service segment, with 96 hotels in operation and a
development plan for 18 to 20 new hotels over the course of the year. We hosted
more than half a million guests throughout 29 states and 58 cities in Mexico, as well
as in Costa Rica and Colombia.
Despite an economic backdrop characterized by uncertainty, subdued
expectations for growth in Mexico and high volatility in main economic indicators,
Hoteles City Express is presenting record operating figures. Operating revenues
and results continue on the right path, with growth in excess of 20%, and an
Page 2 of 20
Quarterly Report 1Q15
Adjusted EBITDA margin of 32.1% for the quarter. This is significant given that the
first quarter of the year has the lowest occupancy rates due to seasonality, in
addition to the impact of new hotel openings in the final months of 2014.
We remain focused on expanding our installed capacity through the execution
of our development plan and we continue to acquire land at sites where we see
long-term growth potential, and where our business model can meet the needs
of travelers looking for a high price/ value ratio.
Proudly, we also announce that in March, we were recognized by the CEMEFI with
the Socially Responsible Company award, the result of various initiatives that the
Company has been implementing in connection with sustainability and social
responsibility.
We continue working to strengthen our competitive position and offer our
shareholders an investment alternative for profitable growth and exposure to the
entire value chain of the hotel industry.”
Page 3 of 20
Quarterly Report 1Q15
Operating Results: Hotel Chain
Chain occupancy continued to strengthen in the first quarter of 2015 at 57.1%, with
respective gains of 6.6% and 10.2% in ADR and RevPAR over the same period in 2014.
Page 4 of 20
Quarterly Report 1Q15
Operating Results: Established Hotels
To allow for an appropriate comparison of its hotels with similar maturity periods, Hoteles
City Express defines “Established Hotels” as those hotels that, on a given date, have been
in operation for at least 36 months. It is believed that once hotels have reached the third
anniversary of their opening date, they have usually achieved their stabilized cycle,
although this does not mean that these hotels cannot reach higher levels of Occupancy
and ADR over time. Similarly, hotels classified as “Non-Established” are those that have
less than 36 months of operation on a given date, and consequently find themselves in
a phase of market penetration, and with greater potential for gains in RevPAR.
At the close of 1Q15, the chain had 63 Established Hotels and 33 Non-Established Hotels.
Quarter
Established Hotels
1Q15
1Q14
Change
Hotels
Rooms
Occupancy
ADR ($)
RevPAR ($)
63
7,096
63.5%
743
472
51
5,643
59.7%
701
419
23.5%
25.7%
380 pbs
6.0%
12.7%
In 1Q15, Established Hotels had an occupancy rate of 63.5%, representing growth of 380
basis points compared to the same quarter of the year before. RevPAR for this category
showed a gain of 12.7% and a rise of 8.5% compared to the RevPAR at the chain level.
This demonstrates the organic growth potential in the chain’s installed capacity.
Page 5 of 20
Quarterly Report 1Q15
Results by Business Segment (Non-IFRS figures)
Hoteles City Express reports using IFRS, so that during the process of consolidation certain
revenues and inter-company expenses are eliminated, mainly management fees and
franchise royalties of hotels that are owned, held in partnership and leased.
Rev enues by Segment
1Q15 v s 1Q14
1Q15
1Q14
Hotel Operation
Hotel Management
363,222
84,160
297,411
73,417
22.1%
14.6%
Total
447,382
370,828
20.6%
(Thousands of Pesos)
% Change
Revenues for the Hotel Operations segment increased 22.1%, from $297.4 million in 1Q14
to $363.2 million in 1Q15, due to the increase in Occupied Room Nights and a 6.6% gain
in ADR.
Hotel Management revenues went up 14.6%, from $73.4 million in 1Q14 to $84.2 million in
1Q15, as a consequence of increased activity in Hotel Operations for the period, as well
as growth in revenues for supervision in the development of new hotels.
Total revenues for the combined segments went up 20.6%, from $370.8 million in 1Q14 to
$447.4 million in 1Q15.
Page 6 of 20
Quarterly Report 1Q15
Consolidated Financial Results (IFRS Figures)
Income Statement Highlights
1Q15 v s 1Q14
1Q15
1Q14
Rooms in Operation
10,929
9,670
13.0%
Rev enues from Hotel Operation
Rev enues from Hotel Management
Total Revenues
359,757
16,637
376,394
295,147
16,004
311,151
21.9%
4.0%
21.0%
Operating Income
Operating Income Margin
58,595
15.6%
45,548
14.6%
28.6%
93 pbs
Adjusted EBITDA
Adjusted EBITDA Margin
120,699
32.1%
99,510
32.0%
21.3%
9 pbs
EBITDA
EBITDA Margin
118,770
31.6%
95,670
30.7%
24.1%
81 pbs
Net Income
Net Margin
45,179
12.0%
16,644
5.3%
171.4%
665 pbs
(Thousands of Pesos)
% Change
Revenues
Total Revenues increased by 21.0%, in 1Q15, from $311.2 million for the quarter ending on
March 31, 2014, to $376.4 million for the quarter ending on March 31, 2015. This growth in
Revenues was mainly due to a gain of 13.0% in the number of installed rooms, a result of
the opening of 11 hotels, as well as an increase of 19.9% in the number of Occupied
Room Nights for the entire Chain.
Page 7 of 20
Quarterly Report 1Q15
Costs and expenses
Total costs and expenses rose 20.6%, from $261.8 million in 1Q14 to $315.7 million in
1Q15. This increase was due primarily to the growth in Installed Room Nights.
Expenses for administration and sales grew by 13.2%, from $49.7million in 1Q14 to $56.3
million in 1Q15. This increase is directly related to the growth in the Hotel Operations
segment, resulting in additional expenses to support such growth. Comparing the 1Q14
to the 1Q15, Administration and Sales expenses declined as a percentage of Total
Revenues representing 16.0% and 15.0%, respectively. Costs for Hotel Operations rose by
23.1%, in line with the increase in Occupied Room Nights.
Operating Income
Operating Income for the 1Q15 was $58.6 million, compared to $45.6 million for the first
quarter of 2014, a gain of 28.6%. Operating Income margin rose by 93 basis points, from
14.6% to 15.6% in 1Q15.
EBITDA and Adjusted EBITDA
In the first quarter of 2015, EBITDA and
Adjusted EBITDA grew by 24.1% and 21.3%
respectively, compared to the first quarter
of 2014. EBITDA reached $118.8 million in
1Q15, with Adjusted EBITDA at $120.7 million
for the period. This amounts to an EBITDA
margin of 31.6% and an Adjusted EBITDA
margin of 32.1%.
Hoteles City Express calculates its Adjusted
EBITDA by adding its Operating Income to its expenses for depreciation and nonrecurring expenses related to hotel openings. Adjusted EBITDA is a useful measure that
Hoteles City uses to compare its performance with that of other companies, facilitating
an appropriate comparison of its consolidated performance during different periods by
eliminating the impact of specific, non-recurring expenses related to hotel openings from
its operating results.
Page 8 of 20
Quarterly Report 1Q15
Financing Result
Financing Expenses fell 91.2% from $24.2 million in 1Q14, to $2.1 million in 1Q15. The net
cost of financing fell by 91.6%, from $19.7 million for the quarter ending on March 31, 2014,
to $1.7 million for the quarter ending on March 31, 2015. This large drop in financing costs
is due to the increase of interest generated as a result of a better cash position at the
close of the period. The net foreign exchange result for the quarter ending March 31,
2015, represented a cost of $0.5 million, compared to a cost of $3.9 million for the quarter
ending on March 31, 2014.
Net Income
Net Income for 1Q15 came to $45.2 million,
compared to Net Income of $16.6 million
reported for the same quarter a year earlier,
representing a gain of 171.4% for the period.
Net Income Margin climbed to 12.0% in 2015, a
gain of 665 basis points with respect to the
1Q14.
Page 9 of 20
Quarterly Report 1Q15
Statement of Financial Position and Cash Flow Statement
Balance Sheet Highlights
(Thousands of Pesos)
Cash and Equivalents
Financial Debt
Net Debt
(1)
March 31, 2015 VS
December 31,2014
As of March 31,
2015
As of December
31, 2014
2,843,215
3,184,474
% Change
-10.7%
1,831,753
(1,011,462)
1,892,154
(1,292,320)
-3.2%
NM
(1) Does not include interest to be paid of $7.2 million as of March 31, 2015 and of $10.6 million as of December 31, 2014.
Cash and equivalents dropped 10.7% by the close of the first quarter of 2015, compared
to the end of December 2014. This was mainly due to the outlay of funds for the
development of new hotels.
The debt to financial institutions, net of interest, was reduced 3.2% compared to the close
of December 2014 at $1.8 billion, of which $129.6 million falls due in the next 12 months,
and $244.0 million is denominated in foreign currency.
At the close of the quarter ended on March 31, 2015, the Company had Net Debt of
($1.0) billion, compared to Net Debt at the close of December 31, 2014 of ($1.3) billion.
Regarding Net Fixed Assets, an increase of 3.2% was recorded under Net Land, Plant and
Equipment when compared to the closing of December 31, 2014. This is directly linked to
cash outlays for the development of new hotels, as well as construction in progress.
At the close of the quarter, the Company had a territorial reserve, with a historical cost
value of approximately $552.2 million.
In terms of cash flow, Hoteles City Express generated $18.2 million as a result of its
operations and invested $281.4 million in the purchase of real estate, furniture, equipment
and improvements to properties in 1Q15. The company reported net financing flows of
negative $109.3 million as a result of the amortization scheduled for credits, altogether
reflected on a reduction in cash and cash equivalents of $352.0 million.
Page 10 of 20
Quarterly Report 1Q15
Portfolio of Hotel Assets
At the close of the 1Q15, Hoteles City Express had an inventory of 96 hotels with a
presence in 29 Mexican states, with a breakdown of the hotel portfolio as follows:
Page 11 of 20
Quarterly Report 1Q15
Hotel Development
Hoteles City Express has a robust development plan focused on strategic locations with
solid demand generators, from which it hopes to create a portfolio of between 116 and
118 hotels in 2015.
During the 1Q15, major progress has been made in the plan, where practically all hotels
in the process of initiating construction have completed architectural projects and are in
the advanced stages of getting permits and licenses. As of today, the opening of City
Express Plus and City Express Suites Los Cabos hotels have been accomplished, the first
hotels we have in that city, with 135 and 28 rooms, respectively. The opening of Hotel City
Express Tuxpan is scheduled for May.
The 2015 Development Plan is shown below:
Hotel 2015 Development
Number
Pipeline
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Hotel
Los Cabos
Los Cabos
Tuxpan
Guadalajara Palomar
Periférico Sur
San Luis Potosí Centro
Piedras Negras
San Luis Potosí Carretera 57
Altamira
Puebla Angelopolis
Silao
Puerto Vallarta
Guadalajara Aeropuerto
Reynosa Aeropuerto
Monterrey Lindav ista
Mérida Altabrisa
Monterrey San Jerónimo
D.F. Aeropuerto
Coatzacoalcos
Aguascalientes Centro
Tulum
Pachuca
Total
Brand
City Express Plus
City Express Suites
City Express
City Express Plus
City Express
City Express Junior
City Express
City Express Junior
City Express
City Express Junior
City Express Suites
City Express Plus
City Express
City Express
City Express
City Express Junior
City Express Plus
City Express
City Express Suites
City Express Junior
City Express Suites
City Express
Investment
Scheme
Owned
Owned
Managed
Owned
Owned
Owned
Owned
Managed
Managed
Co-Owned
Owned
Owned
Managed
Owned
Managed
Managed
Owned
Managed
Co-Owned
Managed
Co-Owned
Managed
Opening
Rooms
2Q15
2Q15
2Q15
2Q15
3Q15
3Q15
3Q15
4Q15
4Q15
4Q15
4Q15
4Q15
4Q15
4Q15
4Q15
4Q15
4Q15
4Q15
4Q15
4Q15
4Q15
4Q15
135
28
108
121
137
124
116
120
108
109
53
127
120
120
113
106
149
135
42
110
120
120
2,421
Location
Baja California Sur
Baja California Sur
Veracruz
Jalisco
D.F.
San Luis Potosí
Coahuila
San Luis Potosí
Tamaulipas
Puebla
Guanajuato
Jalisco
Jalisco
Tamaulipas
Nuev o León
Yucatán
Nuev o León
D.F.
Veracruz
Aguascalientes
Quintana Roo
Hidalgo
Construction Process
Open
Open
Under Construction
Under Construction
Under Construction
To Begin Construction
To Begin Construction
To Begin Construction
To Begin Construction
To Begin Construction
To Begin Construction
Under Construction
Under Construction
To Begin Construction
To Begin Construction
To Begin Construction
Under Construction
Under Construction
To Begin Construction
Under Construction
To Begin Construction
To Begin Construction
Page 12 of 20
Quarterly Report 1Q15
Sustainability and Social Responsibility
Hoteles City Express has the following Policy of Sustainability and Social Responsibility:
"To be an innovative hospitality company, aware of the need to protect the environment,
seeking steady and sustainable savings in the use of energy and water, as well as the
reduction of waste generation, contributing to communities where we operate through the
creation of long-term value."
All of the chain’s hotels have been constructed to comply with international certification
standards. Among the most important sustainability and social responsibility certifications
and awards of Hoteles City Express, the following are included:

LEED-EB-O&M Certification: Granted by the United States Green Building Council
(USGBC). Hoteles City Express was the first chain in Latin America to receive LEED
Silver certification for the Hoteles City Express San Luis Potosi. Currently, the
following hotels have this certification: City Express Guadalajara, City Express
Irapuato, City Express Puebla Centro, City Express Querétaro and City Express
Monterrey Santa Catarina.

EDGE (Excellence in Design for Greater Efficiencies), a certification system created
by the International Financial Corporation (IFC) of the World Bank. Hoteles City
Express was the first company worldwide to receive green building EDGE
certification for the Hoteles City Express Villahermosa. Additionally, this certification
was also granted to City Express Santa Fe, City Express Durango, City Express
Queretaro Jurica, City Express Costa Rica and City Suites Santa Fe. In January
2015, we received 3 additional certifications for the hotels City Express Junior
Ciudad del Carmen, City Express Irapuato Norte and City Express Junior Puebla
Autopista, with estimated savings compared to similar properties of 50% for
energy, 45% for water use, and 36% for efficiency of construction materials.

Biosphere Responsible Tourism Certification: created by the Responsible Tourism
Institute (ITR): Hoteles City Express joins this certification process by becoming the
first company worldwide engaged in the process of certifying all the hotels in its
chain. Currently, 39 hotels are certified.

Socially Responsible Company Award: granted by CEMEFI, whereby Hoteles City
Express is positioning itself as one of the best evaluated companies in corporate
governance, life quality for employees, environmental commitment and social
linkage, with a score 35% above all applications submitted in 2014.

Adherence to the Global Compact of the United Nations: through this adherence,
the Company has joined a global effort of committing to ten universally accepted
principles in the domain of human rights, labor standards, protection of the
environment and fighting against corruption.
Page 13 of 20
Quarterly Report 1Q15
In terms of Social Responsibility, Hoteles City Express focuses on high impact projects that
generate value to society and increase the social and economic well-being of our
communities. For this reason, it concentrates its efforts on supporting initiatives related to
education and entrepreneurship that generate sustainable long-term benefits.
For more information on the initiatives of Hoteles City Express in terms of Sustainability and
Social Responsibility, please refer to our web site at the following address:
https://www.cityexpress.com/en/sustainability/
Page 14 of 20
Quarterly Report 1Q15
Conference Call Details:
Hoteles City Express will host a conference call to discuss these results:
Date:
Time:
Dial-in:
Passcode:
Webcast:
Thursday, April 23, 2015
11:00 am EST / 10:00 am Mexico City Time
1-888-427-9149 (in the U.S.) / 1-719-457-2689 (outside the U.S.)
01-800-514-1067 (toll-free in Mexico)
9317008
http://public.viavid.com/index.php?id=113939
Conference Replay will be available for 12 days:
U.S.: 1-877-870-5176 / International: 1-858-384-5517
Passcode: 9317008
About Hoteles City Express:
Hoteles City Express is considered the leading and fastest-growing limited-service hotel chain in Mexico, in terms of number
of hotels, number of rooms, geographic presence, market share and revenues. Founded in 2002, Hoteles City Express
specializes in offering high-quality, comfortable and safe lodging at affordable prices via a limited-service hotel chain
geared mainly towards domestic business travelers. With 98 hotels in operation located throughout Mexico, Costa Rica
and Colombia, Hoteles City Express operates four distinct brands: City Express, City Express Plus, City Express Suites and City
Express Junior to serve different segments of its target market. In June 2013, Hoteles City Express completed its IPO and
began trading on the Mexican Stock Exchange under the ticker symbol “HCITY;” furthermore, on October 8, 2014, Hoteles
City Express completed a subsequent public offering of stock with the aim of accelerating its growth in new hotels in
coming years.
HCITY is covered by the following financial institutions and analysts: Bank of America Merrill Lynch (Carlos Peyrelongue),
Citigroup (Dan McGoey), Morgan Stanley (Rafael Pinho), Actinver (Pablo Duarte) y J.P. Morgan (Adrián Huerta), Vector
Análisis (Marco Montañez), Santander (Pedro Balcao)and Signum Research (Armando Rodriguez)
For further information, please visit our website: https://cityexpress.com/en/inversionistas/
Disclaimer:
The information presented in this report contains certain forward-looking statements regarding Hoteles City
Express, S.A.B. de C.V. and its subsidiaries (jointly, “the Company”), which are based on the understanding
of its management as well as assumptions and information currently available to the Company. These
statements reflect the Company’s current vision regarding future events and are subject to certain risks,
factors of uncertainty and assumptions. Many factors may cause the results, performance or actual
achievements of the Company to be materially different with respect to any future result, performance or
accomplishment of the Company that might be included, expressly or implicitly, within such forwardlooking statements, including, among other things: changes in general economic and/or political
conditions, government and commercial changes at the global level and in the countries in which the
Company operates, changes in interest rates and inflation, exchange rate volatility, changes in business
strategy and various other factors. If one or more of these risks or uncertainty factors should materialize, or
if the assumptions utilized prove to be incorrect, actual results could differ materially from those described
herein as anticipated, estimated or expected. The Company does not intend and does not assume any
obligation whatsoever to update these forward looking statements.
Financial Tables Follow -
Page 15 of 20
Quarterly Report 1Q15
Statement Consolidated Results
Consolidated Income Statement
(Thousands of Pesos)
1Q15
1Q14
1Q15 vs 1Q14
% Change
Total Revenues
Revenues from Hotel Operation
Revenues from Hotel Management
Total Revenues
359,757
16,637
376,394
295,147
16,004
311,151
21.9%
4.0%
21.0%
Costs and expenses
Hotel operating costs and expenses
Selling and administrative expenses
Depreciation and amortization
Total Costs and Expenses
199,225
56,280
60,175
315,680
161,904
49,737
50,121
261,762
23.1%
13.2%
20.1%
20.6%
1,929
190
2,119
3,841
0
3,841
-49.8%
NM
-44.8%
Operating Income
Operat ing Income Margin (%)
58,595
15.6%
45,548
14.6%
28.6%
93 pbs
Adjusted EBITDA
Adjust ed EBITDA Margin (%)
120,699
32.1%
99,510
32.0%
21.3%
9 pbs
EBITDA
EBITDA Margin (%)
118,770
31.6%
95,670
30.7%
24.1%
81 pbs
Finance income
Finance costs
Effects of valuation of financial instruments
Exchange result, net
Financial Expenses
(20,356)
22,018
2
457
2,121
(16,361)
36,046
661
3,880
24,226
24.4%
-38.9%
-99.7%
-88.2%
-91.2%
Profit before income tax
56,474
21,322
164.9%
Income tax expense
11,295
4,678
141.5%
Net Income for the Period
Net Majority Income
45,179
37,337
16,644
13,826
171.4%
170.0%
Expenses assoc. with new hotel openings
Other (income) / Non-recurring expenses
Total
Page 16 of 20
Quarterly Report 1Q15
Statements of Consolidated Financial Position
As of March 31,
2015
As of December 31,
2014
March 31, 2015 VS
December 31,2014
% Change
Cash and equivalents
2,843,215
3,184,474
-10.7%
Trade receivables, net
85,494
75,177
13.7%
Recoverable taxes
227,129
204,432
11.1%
Prepaid expenses
81,014
52,471
54.4%
0
0
NM
Total Current Assets
3,236,852
3,516,554
-8.0%
Property, equipment and leasehold improvements
6,594,340
6,390,907
3.2%
2,898
2,898
0.0%
12,475
11,121
12.2%
-24.3%
Consolidated Balance Sheet
(Thousands of Pesos)
Assets Available for Sale
Guarantee deposits
Other assets
Derivative financial instruments
11
14
Total Long Term Assets
6,609,724
6,404,940
3.2%
Total Assets
9,846,576
9,921,494
-0.8%
Bank loans and accrued interests
136,773
129,528
5.6%
Trade accounts payable
63,529
71,380
-11.0%
Other taxes, accrued expenses and other liabilities
128,041
130,204
-1.7%
6,481
11,723
-44.7%
Liabilities
Current Liabilities:
Income tax payable
Direct employee benefits
10,280
17,529
-41.4%
Total Current Liabilities
345,104
360,364
-4.2%
1,702,140
1,773,186
-4.0%
18,943
16,025
18.2%
Long-term debt
Deferred revenues
Employee benefits
1,682
1,514
11.1%
Derivative financial instruments
12,458
13,514
-7.8%
Deferred income tax
93,437
102,094
-8.5%
Total Long Term Liabilities
1,828,660
1,906,333
-4.1%
Total Liabilities
2,173,764
2,266,697
-4.1%
Equity
Equity Attributable to the Owners of the Entity
Issued capital
5,528,853
5,548,575
-0.4%
Additional paid-in capital
660,652
660,652
0.0%
Retained earnings
838,585
801,248
4.7%
(61,611)
6,966,479
(51,931)
6,958,544
18.6%
706,333
696,253
1.4%
Total Equity
7,672,812
7,654,797
0.2%
Total Liabilities + Equity
9,846,576
9,921,494
-0.8%
Onther Comprehensive Income
Total Equity Attributable to the Owners of the Entity
Non-controlling interests
0.1%
Page 17 of 20
Quarterly Report 1Q15
Consolidated Cash Flow Statements
Consolidated Cash Flow Statement
(Thousands of Pesos)
1Q15
1Q14
Profit before income tax
56,474
21,322
Operating Activities
Depreciation
60,175
50,121
Loss on disposal of equipment
Finance income
Finance costs
96
(570)
(20,356)
(16,361)
22,018
36,046
(Gain) Loss on Valuation of Financial Instruments
(741)
303
Unrealized foreign currency fluctuations
6,790
(14,278)
124,456
76,583
Trade receivables
(10,317)
(16,132)
Recoverable taxes
(22,696)
(13,195)
Prepaid expenses, net
(28,542)
(11,013)
(7,850)
20,062
(18,474)
25,533
Changes in Working Capital:
Trade and other payables
Accrued Exprenses, tohers and taxes to be paid
Employee benefits
Income tax and business flat tax paid
Net Cash Flows from Operating Activities
(7,081)
553
(11,295)
(4,677)
18,201
77,714
(281,428)
(216,223)
214
(1,084)
Investing Activities:
Payments for property, equipment and leasehold
improvements
Other assets
Finance income received
Net Cash Flows used in Investing Activities
20,356
16,361
(260,858)
(200,946)
Financing Activities:
Proceeds from contributions rec. from non-controlling interests
2,238
2,172
Repurchase of shares
(19,722)
(10,901)
Finance cost paid
(38,294)
0
(53,573)
(37,115)
110,000
(130,069)
(109,351)
(65,913)
Proceeds from short- and long-term borrowings
Repayment of borrowings
Net Cash Flows used in Financing Activities
Net increase (decrease) in cash and equivalents
(352,008)
(189,145)
Cash at the beginning of the period
3,184,474
1,687,290
10,749
(23,148)
2,843,215
1,474,997
Effects of exchange rate changes on the balance of cash held
in foreign currencies and effects of balances of foreign
operations
Cash at the End of the Period
Page 18 of 20
Quarterly Report 1Q15
Hotel Inventory
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Hotel
Saltillo
San Luis
Monterrey Santa Catarina
Querétaro
León
Accumulated 2003
Anzures
Puebla
Nuevo Laredo
Ciudad Juárez
Irapuato
Accumulated 2004
Reynosa
Cancun
Tepatitlán
Tuxtla Gutiérrez
Querétaro
Accumulated 2005
Chihuahua
Guadalajara
Tampico
Mexicali
Toluca
Accumulated 2006
EBC Reforma
Hermosillo
Celaya
Insurgentes Sur
Coatzacoalcos
Tepozotlán
Accumulated 2007
Toluca
Mazatlán
Morelia
Lázaro Cárdenas
Puebla Angelópolis
Tijuana Río
Silao
Toluca
Monterrey Aeropuerto
Accumulated 2008
El Angel
Mexicali
Chihuahua
Tula
Los Mochis
Zacatecas
Tijuana Otay
Veracruz
Saltillo Sur
Cancun
Accumulated 2009
Tlaquepaque
Ciudad Juárez
Poza Rica
Nogales
San Luis Univ.
Accumulated 2010
Brand
City
City
City
City
City
Express
Express
Express
Express
Express
Investment
Scheme
Owned
Owned
Owned
Owned
Owned
Opening
Rooms
Location
may-03
jul-03
oct-03
nov-03
dic-03
120
120
105
121
120
586
26
124
107
114
104
1,061
104
128
80
124
45
1,542
104
145
124
117
141
2,173
70
120
104
159
118
109
2,853
106
110
60
119
118
131
121
91
130
3,839
137
106
105
103
124
109
134
124
107
106
4,994
107
128
118
109
109
5,565
Coahuila
San Luis Potosí
Nuevo León
Querétaro
Guanajuato
City Express Suites
City Express
City Express
City Express
City Express
Leased
Owned
Managed
Co-Owned
Owned
abr-04
may-04
ago-04
oct-04
nov-04
City Express
City Express
City Express
City Express
City Express Suites
Co-Owned
Leased
Managed
Franchise
Managed
feb-05
mar-05
abr-05
dic-05
dic-05
Franchise
Owned
Co-Owned
Owned
Owned
mar-06
jul-06
nov-06
dic-06
dic-06
City Express
City Express
City Express
City Express Plus
City Express
City Express
Owned
Co-Owned
Leased
Owned
Co-Owned
Leased
ene-07
abr-07
may-07
jul-07
ago-07
dic-07
City Express Junior
City Express
City Express
City Express
City Express
City Express
City Express
City Express Suites
City Express
Leased
Managed
Franchise
Owned
Co-Owned
Managed
Owned
Owned
Owned
feb-08
jun-08
jul-08
nov-08
nov-08
dic-08
dic-08
dic-08
dic-08
City Express Plus
City Express Junior
City Express Junior
City Express
City Express
City Express
City Express Junior
City Express
City Express
City Express Junior
Owned
Owned
Franchise
Managed
Owned
Managed
Co-Owned
Leased
Managed
Leased
ene-09
feb-09
mar-09
mar-09
jun-09
jun-09
jun-09
sep-09
dic-09
nov-09
City Express Junior
City Express Junior
City Express
City Express
City Express
Leased
Owned
Co-Owned
Owned
Co-Owned
feb-10
mar-10
mar-10
nov-10
dic-10
City
City
City
City
City
Express
Express
Express
Express
Express
D.F.
Puebla
Tamaulipas
Chihuahua
Guanajuato
Tamaulipas
Quintana Roo
Jalisco
Chiapas
Querétaro
Chihuahua
Jalisco
Tamaulipas
Baja California
Estado de México
D.F.
Sonora
Guanajuato
D.F.
Veracruz
Estado de México
Estado de México
Sinaloa
Michoacán
Michoacán
Puebla
Baja California
Guanajuato
Estado de México
Nuevo León
D.F.
Baja California
Chihuahua
Hidalgo
Sinaloa
Zacatecas
Baja California
Veracruz
Coahuila
Quintana Roo
Jalisco
Chihuahua
Veracruz
Sonora
San Luis Potosí
Page 19 of 20
Quarterly Report 1Q15
No.
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
Hotel
Minatitlán
Mérida
Torreón
Culiacan
Veracruz
Aguascalientes
Buenavista
Playa del Carmen
Puebla Autopista
Tuxtla Gutierrez
Manzanillo
Ciudad del Carmen
Accumulated 2011
Ciudad Obregon
Campeche
San Luis Potosi
Villahermosa
Queretaro Jurica
Durango
San José
Xalapa
Tijuana Insurgentes
Accumulated 2012
Chetumal
Santa fe
Santa fe
Oaxaca
Salina Cruz
Patio Universidad
La Paz
Puebla Autopista
Cali
Cananea
Irapuato Norte
Accumulated 2013
Cd. Del Carmen Isla de Tris
Cd. Del Carmen Aeropuerto
Tehuacan Puebla
Dos Bocas Tabasco
Monterrey Norte
D.F. Central de Abastos
Puebla Autopista
Apizaco
Cd Victoria
Satélite
Monterrey Nuevo Sur
Matamoros
Salamanca
Villahermosa
Accumulated 2014
Los Cabos
Los Cabos
Total Current Portfolio
City Express
City Express
City Express
City Express
City Express Junior
City Express
City Express
City Express
City Express
City Express Junior
City Express
City Express
Investment
Scheme
Co-Owned
Co-Owned
Managed
Co-Owned
Leased
Owned
Managed
Co-Owned
Co-Owned
Leased
Owned
Co-Owned
City Express
City Express
City Express Suites
City Express
City Express
City Express
City Express
City Express
City Express
Owned
Owned
Managed
Owned
Co-Owned
Co-Owned
Owned
Managed
Owned
ene-12
abr-12
jul-12
jul-12
sep-12
oct-12
nov-12
dic-12
dic-12
City Express
City Express Plus
City Express Suites
City Express
City Express
City Express Plus
City Express
City Express Junior
City Express
City Express
City Express
Leased
Co-Owned
Co-Owned
Managed
Managed
Owned
Owned
Co-Owned
Owned
Co-Owned
Co-Owned
mar-13
jun-13
ago-13
oct-13
oct-13
dic-13
dic-13
dic-13
dic-13
dic-13
dic-13
City Express Junior
City Express Junior
City Express
City Express
City Express
City Express
City Express Suites
City Express
City Express
City Express Plus
City Express Plus
City Express
City Express
City Express Junior
Managed
Co-Owned
Managed
Co-Owned
Managed
Leased
Co-Owned
Managed
Managed
Franchise
Owned
Owned
Owned
Owned
feb-14
feb-14
mar-14
may-14
ago-14
sep-14
sep-14
sep-14
oct-14
oct-14
dic-14
dic-14
dic-14
dic-14
City Express Plus
City Express Suites
Owned
Owned
abr-15
abr-15
Brand
Opening
Rooms
Location
mar-11
abr-11
may-11
jun-11
jul-11
ago-11
sep-11
sep-11
oct-11
oct-11
nov-11
dic-11
109
130
115
133
104
123
103
135
108
106
116
129
6,976
120
110
120
155
135
120
134
126
127
8,123
109
159
39
103
116
124
124
113
127
98
122
9,357
109
124
108
108
115
135
72
104
108
89
138
113
113
136
10,929
135
28
11,092
Veracruz
Yucatán
Coahuila
Sinaloa
Veracruz
Aguascalientes
D.F.
Quintana Roo
Puebla
Chiapas
Colima
Campeche
Sonora
Campeche
San Luis Potosí
Tabasco
Querétaro
Durango
Costa Rica
Veracruz
Baja California
Quintana Roo
D.F.
D.F.
Oaxaca
Oaxaca
D.F.
Baja California Sur
Puebla
Colombia
Sonora
Guanajuato
Campeche
Campeche
Puebla
Tabasco
Nuevo León
D.F.
Puebla
Tlaxcala
Tamaulipas
D.F.
Nuevo León
Tamaulipas
Guanajuato
Tabasco
Baja California Sur
Baja California Sur
Page 20 of 20