KAUFMAN & BROAD SA prepare for an aging population and housing people aged 55 and over; their customers include both leaseholders and property owners.
Net cash: this corresponds to "negative" net debt or "negative" net financial debt, which means that the company's balance of available cash and financial investments constituting its "cash assets" is greater than the amount of its gross liabilities (or gross financial debt).
Net debt or net financial debt: a company's net debt or net financial debt is the balance between its gross financial liabilities (or gross financial debt) on the one hand, and the available cash and financial investments constituting its "cash assets" on the other. It represents the company's creditor or debtor position with respect to third parties outside the operating cycle.
Orders: measured in volume terms (units) and value terms; orders reflect the group's sales activity. Orders are recognized in revenue based on the time necessary to "convert" an order into a signed and notarized deed, which is the point at which income is generated. In addition, in the case of multi-occupancy housing programs that include mixed-use buildings (apartments, business premises, retail space and offices), all of the floor space is converted into housing unit equivalents.
Orders (in value): this figure represents the value of the real property as expressed in order contracts signed, including VAT, for a given period. It is net of cancellations recorded during that period.
Property portfolio: this includes land for development (otherwise called the land portfolio), i.e. land for which a deed or promise of sale has been signed, as well as land under review, i.e. land for which a deed or promise of sale has not yet been signed.
Property supply: this refers to the total inventory of properties available for sale as of the date in question, i.e. all unordered housing units as of this date (minus the programs that have not yet entered the marketing phase).
Sale-before-completion (VEFA): a sale-before-completion is an agreement whereby the seller transfers its rights to the land and ownership of the existing buildings to the buyer immediately. The future structures will become the buyer's property as and when they are completed: the buyer is required to pay the price of these structures as the works progress. The seller retains the powers of the Project Owner until acceptance of the work.
Senior loans (lines of credit): banks use senior debt to fund LBO (leveraged buyout) transactions. LBO financing by banks is risky in the bank credit market. It consists of loans repayable by installments and/or, most frequently, "bullet repayment" type loans, but also lines of credit to finance the working capital requirements and growth policies of companies involved in this type of acquisition. Senior debt is debt that enjoys specific guarantees, the repayment of which has priority over other so-called subordinated debt. It is therefore "priority debt".
Take-up period: the inventory take-up period is the number of months required for available housing units to be sold if sales continue at the same pace as in previous months, i.e. housing units outstanding (available supply) per quarter divided by the number of orders per quarter ended and with orders in turn divided by three.
Take-up rate: the take-up rate represents the percentage of a property program's initial inventory that is sold on a monthly basis (sales per month divided by the initial inventory), i.e. net monthly orders divided by the ratio between the opening inventory and the closing inventory, divided by two.
Units: the number of housing units or equivalent housing units (for mixed projects) for a given project. The number of equivalent housing units is calculated as a ratio between the surface area by type (business premises, retail space or offices) and the average surface area of the housing units previously obtained.
Working Capital Requirement (WCR): WCR results from deferrals of cash flow: inflows and outflows relating to operating expenditures and revenues necessary for the design, production and marketing of real estate projects. WCR can thus be simply expressed as current assets (inventory + accounts receivable + other operating receivables + advances received + deferred income) minus current liabilities (accounts payable + tax and social security liabilities + other operating liabilities + prepaid expenses). The amount of WCR will depend in particular on the length of the operating cycle, the extent and duration of the work-in-process inventory carried, the number of projects initiated, and the payment terms granted by suppliers and delivery schedules granted to customers.
APPENDICES ? Financial data
Key consolidated data
Q1 Q1
In EUR millions 2021
2020
Revenue 285.9 299.2
? Of which Housing 247.3 272.2
? Of which Commercial 36.3 25.2
? Of which Other 2.3 1.9
Gross margin 49.4 57.1
Gross margin ratio (%) 17.3% 19.1%
Current operating income* 21.9 25.4
EBIT margin (%) 7.7% 8.5%
Attributable net income 11.8 13.2
Attributable net income per share (EUR/share) ** EUR0.54 EUR0.60 * Adjusted EBIT corresponds to current operating profit restated for capitalized "IAS 23 revised" borrowing costs, which are deducted from the gross margin.
**Based on the number of shares that make up Kaufman & Broad S.A's share capital, i.e. 22,088,023 shares at February 28, 2020 and 21,713,023 shares at February 28, 2021 (following the capital decrease corresponding to 375,000 of the Company's treasury shares completed on February 5, 2021).
Consolidated income statement*
Q1 Q1
In EUR thousands 2021
2020
Revenue 285,915 299,214
Cost of sales -236,501 -242,116
Gross margin 49,413 57,098
Selling expenses -3,922 -4,887
Administrative expenses -10,427 -13,351
Technical and customer service expenses -5,258 -5,386
Development and program expenses -7,898 -8,121
Current operating income 21,908 25,354
Other non-recurring income and expenses - -
Operating income 21,908 25,354
Cost of net financial debt -2,229 -2,579
Other financial income and expenses - -
Income tax -5,577 -4,672
Share of income (loss) of 709 190
equity affiliates and joint ventures
Net income of the consolidated entity 14,812 18,293
Non-controlling interests 3,010 5,095
Attributable net income 11,802 13,198 *Not approved by the Board of Directors and not audited.
Consolidated balance sheet*
In EUR thousands February 28, November 30,
2021 2020
ASSETS
Goodwill 68,661 68,661
Intangible assets 91,096 91,060
Property, plant and equipment 5,650 5,977
Right-of-use assets
19,919 20,388
9,014 5,767
Equity affiliates and joint ventures
Other non-current financial assets 7,079 7,021
Deferred tax assets 502 502
Non-current assets 201,921 199,376
Inventories 415,172 378,451
Accounts receivable 472,079 464,977
Other receivables 171,075 183,896
Cash and cash equivalents 175,088 215,192
Prepaid expenses 654 515
Current assets 1,234,068 1,243,031
TOTAL ASSETS 1,435,989 1,442,407
February 28, November 30,
2021 2020
LIABILITIES
Share capital 5,645 5,743
Additional paid-in capital 256,779 220,539
Attributable net income 11,803 40,138
Attributable shareholders' equity 274,226 266,420
Non-controlling interests 10,358 8,998
Shareholders' equity 284,584 275,418
Non-current provisions 35,470 39,883
Non-current financial liabilities 149,078 149,008
Long-term financial lease liabilities 12,716 13,368
Deferred tax liabilities 51,748 47,006
Non-current liabilities 249,013 249,265
Current provisions 1,526 2,017
Other current financial liabilities 4,648 3,656
Short-term financial lease liabilities 6,531 6,322
Accounts payable 786,725 759,985
Other payables 102,713 144,697
Prepaid income 249 1,047
Current liabilities 902,392 917,724
TOTAL LIABILITIES 1,435,989 1,442,407
*Not approved by the Board of Directors and not audited
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