Because of the company’s capacity to generate and administer cash flow, it complied with all financial and operating commitments during the year and continued to make progress in reducing its level of debt. At the close of 2014, debt totaled $4,750 million pesos, 8% below the $5,148 million pesos posted at yearend 2013. The leverage ratio in terms of Net Debt to EBITDA was 2.2 times as of December 31, 2014, comparing favorably to the ratio of 2.5 as of yearend 2013.
During the third quarter of the year, in accordance with its loan contracts, the company’s reduced leverage enabled it to pay dividends for the second consecutive year.
In order to capitalize on the company’s reduced level of financial risk, during the third quarter of the year Grupo Lamosa refinanced its debt through a syndicated loan of $365 million dollars. The transaction, led by Scotiabank, improved the company’s credit conditions. Among the benefits achieved were a reduction in financing cost, the liberation of guarantees, the calendarization of the debt service over five years with a one-year grace period, and a repayment schedule more in line with the company’s projected expansion.
During 2014, Grupo Lamosa made capital expenditures of $295 million pesos, mainly to assure that its production facilities continue to operate with leading-edge technology and to develop and implement new information technologies.
Aware of the need to enhance the volume of Lamosa* shares traded, in August 2014, 22 million shares, equivalent to 6% of the company’s stockholders’ equity, were issued with the support of the Actinver brokerage firm. This transaction expanded the company’s shareholder base and increased the availability and trading volume of Lamosa shares on the Mexican Stock Market (BMV).
In an effort to raise domestic and international investors’ interest in the company, during the fourth quarter of 2014 Grupo Lamosa took part in the BMV’s Independent Analyst Program. Being involved in this initiative expanded analysts’ coverage of the company.
During 2014, Grupo Lamosa made no purchase or selling transactions with the shares that represent its capital stock.