cover sheet · 2013-10-23 · 1 securities and exchange commission sec form 17- q quarterly report...
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COVER SHEET
1 5 2 6 6 1 SEC Registration Number
C I T Y & L A N D D E V E L O P E R S , I N C .
(Company’s Full Name)
1 5 6 H . V . D E L A C O S T A S T . , ,
S A L C E D O V I L L A G E , M A K A T I C I T Y (Business Address: No. Street City/Town/Province)
Rufina C. Buensuceso 893 – 6060 Contact Person Company Telephone Number
1 2 3 1 1 7 - Q Month Day FORM TYPE Month Day
Fiscal Year Annual Meeting
(Secondary License Type, If Applicable)
C F D Dept. Requiring this Doc. Amended Articles Number / Section
Total Amount of Borrowings
Total No. of Stockholders Domestic Foreign
----------------------------------------------------------------------------------------------------------------------- To be accomplished by SEC Personnel concerned
File Number LCU
Document ID Cashier
S T A M P S
Remarks = pls. use black ink for scanning purposes
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SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17- Q
QUARTERLY REPORT PURSUANT TO SECTION 17
OF THE SECURITIES REGULATION CODE AND SECTION 141
OF THE CORPORATION CODE OF THE PHILIPPINES
1. For the fiscal year ended June 30, 2012
2. SEC Identification Number 152661 3. BIR Tax Identification No. 000-444-840
4. Exact name of issuer as specified in its charter CITY & LAND DEVELOPERS, INC.
5. Makati City, Philippines 6. (SEC Use Only)
Province, country or other jurisdiction Industry Classification Code
of incorporation
7. 3/F Cityland Condominium 10 Tower 1,
#156 H.V. Dela Costa St., Salcedo Village, Makati City 1226 Address of Principal Office Postal Code
8. 632-893-6060
Issuer's telephone number, including area code
9. Former name, former address and former fiscal year, if changed since last report N/A
10. Securities registered pursuant to Sections 8 and 12 of the SRC, or Sec. 4 and 8 of the RSA
Title of Each Class Number of Shares of Common Stock
Outstanding
Unclassified Common Shares 676,042,298
11. Are any or all of these securities listed on a Stock Exchange.
Yes [ x ] No [ ]
If yes, state the name of such stock exchange and the classes of securities listed therein:
Stock Exchange Title of Each Class
Philippine Stock Exchange Unclassified Common Shares
12. Check whether the issuer:
(a) Has filed all reports required to be filed by Section 17 of the Code and SRC Rule 17 thereunder or
Sections 11 of the RSA and RSA Rule 11(a)-1 thereunder, and Sections 26 and 141 of the
Corporation Code of the Philippines; during the preceding twelve (12) months (or for such shorter
period that the registrant was required to file such reports):
Yes [ x ] No [ ]
(b) Has been subject to such filing requirements for the past 90 days.
Yes [ x ] No [ ]
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PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
The financial statements and accompanying notes are filed as part of this form (pages 7 to 24).
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation
On June 2012, the Company turned over, one year ahead of schedule, Manila Residences Bocobo, a 34-
storey office, commercial and residential condominium located in Jorge Bocobo St., Ermita, Manila
City. The Company is now selling its remaining unsold units.
Internal sources of liquidity come from sales of condominiums and real estate projects, collection of
installment receivables, maturing short-term investments while external sources come from SEC-
registered commercial papers and Home Guaranty Corporation’s guaranteed promissory notes.
The Company has three prime lots for future development. The latest acquisition is located at EDSA
corner Lanutan Alley, Brgy. Veterans Village, Quezon City. The other lots are located along Roxas
Boulevard and Samar Avenue, Quezon City.
Financial Condition (June 30, 2012 vs. December 31, 2011)
Total assets amounted to P=2.299B as of the first semester of 2012 as compared to the previous year’s
ending balance of P=2.221B. Collection from sales of real estate properties and maturity of short-term
cash investments increase cash and cash equivalents account. This was partially offset by the decrease in
real estate properties for sale resulting to a 3.48% increase in total assets.
On the liabilities side, the increase in accounts payable and accrued expenses was due to dividends
payable. Total stockholder’s equity now stands at P=1.493B as of June 2012, higher by 3.37% from 2011
year end balance of P=1.444B due to net income of P=149.73M plus adjustments in net changes in fair
vale of AFS investments of P=0.338M, less cash dividends of P=101.41M.
As a result of the foregoing, acid test ratio, current ratio and asset to equity ratio were recorded at
1.38:1, 1.68:1 and 1.54:1 as of June 2012, as compared with 1.26:1, 2.00:1 and 1.54:1 in December
2011, respectively. Debt-equity ratio remained stable at 0.21:1 in June 2012, as compared with 0.29:1 in
the same quarter of the previous year while interest rate coverage ratio was at 31.39:1 in June 2012 as
compared with 30.64:1 in the same period of the previous year.
Results of Operation (June 30, 2012 vs. June 30, 2011)
Total revenues reach P=407.89M as compared with last year’s figure of P=517.87M. The decrease can be
attributed to lower sales due to decrease in inventory of Grand Emerald Tower. This project was already
sold at 86.50% last year. On the cost side, lower sales decreased cost of sales, operating expenses and
income tax. As a result, net income for the first semester of 2012 reached P=149.73M as compared with P=
124.51M of the same period last year. Altogether, this translated to earnings per share of P=0.44 and
return on equity of 20.06% (both annualized), as compared with the previous year of P=0.37 and 19.90%,
respectively
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Key Performance Indicators
June 2012 December 2011 June 2011
Earnings per share * P=0.44 P=0.47 P=0.37
Return on equity * 20.06% 21.95% 19.90%
Current ratio 1.68 2.00 2.24
Interest rate coverage ratio 31.39 36.95 30.64
Asset to equity ratio 1.54 1.54 1.62
Acid-test ratio 1.38 1.26 1.44
Debt-equity ratio 0.21 0.22 0.29
*annualized
Note: Earnings per share is after retroactive effect of 20% stock dividends in 2011.
Manner of calculations:
Earnings per share = Net Income/ Average Number of Shares Issued and Outstanding
Return on equity = Net Income/ Total Stockholders' Equity
Current ratio = Total Current Assets / Total Current Liabilities
Interest rate coverage ratio = Net Income before tax + Interest Expense +Depreciation Expense
Interest Expense
Asset to equity ratio = Total Assets
Stockholder’s Equity (net of Net Changes in Fair Value of AFS Investment)
Acid – test ratio = Cash and cash equivalents + Short-term Cash Investments + Available-for- Sale
Investments + Financial Assets at Fair Value Through Profit and Loss +
Installment Contracts Receivable + Other Receivables
Total Current Liabilities
Debt- Equity ratio = Loans & Notes Payable
Total Stockholders' Equity (net of Net Changes in FV of Investments)
Items affecting assets, liabilities, equity, net income, or cash flows that are unusual because of
their nature, size or incidents
There are no unusual items affecting assets, liabilities, equity, net income or cash flows.
Any changes in estimates of amounts reported in prior interim periods of the current financial
year or changes in estimates of amounts reported in prior financial years that have a material
effect in the current interim period
There are no changes in estimates of amounts reported in prior interim periods of the current financial
year or changes in estimates of amounts reported in prior financial years that have a material effect in
the current interim period.
Any issuances, repurchases, and repayments of debt and equity securities
The Company issued SEC-Registered Short-Term Commercial Papers during the period. The
outstanding balance is P=134.45 million as of June 30, 2012.
Any material events subsequent to the end of the interim period that have not been reflected in the
financial statements for the interim period
There are no material events subsequent to the end of the interim period that have not been reflected in
the financial statements for the interim period.
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Effect of changes in the composition of the issuer during the interim period, including business
combinations, acquisition or disposal of subsidiaries and long-term investments, restructuring,
and discontinuing operations.
There are no changes in the composition of the issuer during the interim period, including business
combinations, acquisition or disposal of subsidiaries and long-term investments, restructuring, and
discontinuing operations.
Any changes in contingent liabilities or contingent assets since the last annual balance sheet date
There are no changes in the contingent liabilities or contingent assets since the last annual balance sheet
date.
Any Known Trends, Events or Uncertainties (Material impact on liquidity)
There is no known trends, events or uncertainties that has a material effect on liquidity.
Internal and External Sources of Liquidity
Internal sources come from sales of condominium and real estate projects, collection of installment
receivables and maturing short-term investments. External sources come from bank loans.
Any Material Commitments for Capital Expenditures and Expected Sources of Funds of such
Expenditures
The estimated development cost of P=255.33 million as of June 30, 2012 representing the cost to
complete the development of real estate projects sold will be sourced through:
a. Sales of condominium and real estate projects
b. Collection of installment receivables
c. Maturing short-term investments
d. Issuance of commercial papers
Any Known Trend or Events or Uncertainties (Material Impact on Net Sales or Revenues or
Income from Continuing Operations)
There is no known trend, event or uncertainties that has a material effect on the net sales, revenues or
income from continuing operations.
Any Significant Elements of Income or Loss that did not arise from Registrant’s Continuing
Operations
There are no significant elements of income or loss that did not arise from registrant’s continuing
operations.
Causes for any Material Changes from Period to Period in One or More Line of the Registrants
Financial Statements.
a. Increase in Cash and Cash Equivalents was due to collection and maturities of short-term cash
investments.
b. Decrease in Short-term Cash Investments was due to maturity of placements.
c. Increase in Available for Sale Financial Assets was due to increase in market value of stocks.
d. Decrease in Real Estate Properties for Sale (net) was due to sales of real estate properties.
e. Increase in Other Assets was due to Meralco refundable deposits.
f. Increase in Accounts Payable and Accrued Expenses was due to cash dividends.
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g. Decrease in Income Tax Payable was due to payment.
h. Increase in Net Changes in Fair Value of AFS Investment was due to increase in market value of
stocks.
i. Increase in Retained Earnings was due to net income – net of cash dividends declared.
j. Decrease in Sales of Real Estate was due to lower inventory of units available for sale of Grand
Emerald Tower.
k. Increase in Rent Income was due to increase in units available for lease.
l. Decrease in Other Revenues was due to decrease in miscellaneous income.
m. Decrease in Cost of Sales was due to sales.
n. Decrease in Operating Expenses was due to sales.
o. Decrease in Provision for Income Tax was due to lower revenues.
p. Increase in Net Income was due to decrease in operating expenses and provision for income tax.
Compliance to Philippine Accounting Standard (PAS) 34, Interim Financial Reporting
The Company’s unaudited interim financial statements are in compliance with Philippine Accounting
Standard (PAS) 34, Interim Financial Reporting. The same accounting policies and methods of
computation are followed as compared with the most recent annual financial statements. However, the
financial statements as of June 30, 2012 do not include all of the information and disclosures required in
the annual financial statements and therefore, should be read in conjunction with the annual financial
statements as of and for the year ended December 31, 2011. There are no any events or transactions that
are material to an understanding of the current interim period.
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CITY & LAND DEVELOPERS, INC.
BALANCE SHEETS
UNAUDITED
June 2012 December 2011
ASSETS
Cash and cash equivalents (Note 4) 759,616,832 311,540,443
Short-term Cash Investments -- 211,500,000
Available-for-sale financial assets (Note 5) 1,301,274 960,623
Installment contracts receivable (Note 6) 886,574,480 871,354,650
Other receivables (Note 7) 9,127,790 9,262,850
Real estate properties for sale (Note 8) 214,664,656 391,691,341
Real estate properties for future development 238,642,373 236,780,497
Investment properties (Note 9) 181,814,333 183,160,682
Other assets 6,922,004 5,174,222
TOTAL ASSETS 2,298,663,742 2,221,425,308
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses (Note 10) 408,776,046 374,198,278
Loans and notes payable (Note 11) 319,608,296 322,020,561
Income tax payable 7,098,961 7,952,956
Deferred tax liabilities 70,535,446 73,272,398
Total Liabilities 806,018,749 777,444,193
Stockholders’ Equity
Capital stock – P1 par value
Authorized – 700,000,000 shares
Issued – 676,042,298 shares 676,042,298 676,042,298
Additional paid-in capital 105,136 105,136
Net changes in fair value of investments 1,029,674 690,710
Retained earnings (Note 13)
Appropriated 100,000,000 100,000,000
Unappropriated 715,467,885 667,142,971
Total Stockholders’ Equity 1,492,644,993 1,443,981,115
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY 2,298,663,742 2,221,425,308
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CITY & LAND DEVELOPERS, INC.
STATEMENTS OF INCOME
2nd
Qtr
2012
2nd
Qtr
2011
UNAUDITED
For the 6-month
ending June ‘12
For the 6-month
ending June ‘11
REVENUES
Sales of real estate 159,743,024 159,797,793 322,214,155 429,838,883
Financial income (Note 14) 39,944,501 43,006,590 81,431,476 85,155,988
Rent income 1,056,332 205,877 2,209,625 382,318
Other income 700,023 1,445,839 2,030,131 2,496,084
201,443,880 204,456,099 407,885,387 517,873,273
EXPENSES
Cost of real estate sales 63,772,154 98,744,111 162,132,414 275,176,270
Operating expenses (Note 15) 30,667,644 40,665,067 70,593,906 86,424,805
Financial expenses (Note 17) 3,482,322 3,024,720 5,796,927 5,609,773
97,922,120 142,433,898 238,523,247 367,210,848
INCOME BEFORE INCOME TAX 103,521,760 62,022,201 169,362,140 150,662,425
PROVISION FOR INCOME TAX (Note 19) 12,183,369 8,706,162 19,630,882 26,147,392
NET INCOME 91,338,391 53,316,039 149,731,258 124,515,033
Earnings per share 0.221 0.184*
* After retroactive effect of 20% stock dividends in 2011.
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CITY & LAND DEVELOPERS, INC.
STATEMENT OF COMPREHENSIVE INCOME
2nd
Qtr
2012
2nd
Qtr
2011
For the 6-
months ending
June 2012
For the 6-
months ending
June 2011
Net Income 91,338,391 53,316,039 149,731,258 124,515,033
Other comprehensive income
Recovery (decline) on market value of stocks 147,768 (14,156) 338,964 (14,150)
Total other comprehensive income 147,768 (14,156) 338,964 (14,150)
Total Comprehensive Income – net 91,486,159 53,301,883 150,070,222 124,500,883
Earnings per share
0.222
0.184
* After retroactive effect of 20% stock dividends in 2011.
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CITY & LAND DEVELOPERS, INC
STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
Capital stock
Stock
dividends
distributable
Additional
paid-in
capital
Net changes in
fair value of
investments
Retained earnings
Total Unappropriated Appropriated
Beginning balance, Jan. 1 676,042,298 -- 105,136 690,710 667,142,971 100,000,000 1,443,981,115
Cash dividends (101,406,344) (101,406,344)
Total comprehensive income 338,964 149,731,258 150,070,222
Ending balance, June 30, 2012 676,042,298 -- 105,136 1,029,674 715,467,885 100,000,000 1,492,644,993
Capital stock
Stock
dividends
distributable
Additional
paid-in
capital
Net changes in
fair value of
investments
Retained earnings
Total Unappropriated Appropriated
Beginning balance, Jan. 1 563,368,825 -- 105,136 711,958 541,704,324 100,000,000 1,205,890,243
Cash dividends (78,871,636) (78,871,636)
Stock dividends 112,673,765 (112,673,765) --
Total comprehensive income (14,150) 124,515,033 124,500,883
Ending balance, June 30, 2011 563,368,825 112,673,765 105,136 697,808 474,673,956 100,000,000 1,251,519,490
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CITY & LAND DEVELOPERS, INC.
STATEMENTS OF CASH FLOWS
Unaudited
2nd Qtr
2012
2nd Qtr
2011 As of
June 2012
As of
June 2011
CASH FLOW FROM OPERATING ACTIVITIES
Income before income tax 103,521,760 62,022,201 169,362,140 150,662,425
Adjustments for:
Interest expense – net of amounts capitalized 3,328,672 2,688,957 5,618,377 5,129,199
Interest income (39,939,362) (43,000,215) (81,423,138) (85,147,677)
Dividend income (5,139) (6,375) (8,338) (8,311)
Depreciation 678,715 678,715 1,357,431 1,357,431
Changes in operating assets and liabilities
Decrease (increase) in:
Installment Contracts Receivable (30,314,869) 17,517,122 (15,219,830) (59,536,040)
Other receivables 109,412 2,638,997 (373,930) 1,020,602
Real estate properties for sale 100,111,024 66,676,192 177,026,685 161,122,246
Real estate properties for future development (356,598) (163,689) (1,861,876) (741,560)
Other assets (466,125) 774,411 (1,747,782) 665,211
Increase (decrease) in accounts payable and accrued
expenses
(55,319,892)
(37,804,945)
(67,033,818)
(5,772,820)
Cash from (used in) operations 81,347,598 72,021,371 185,695,921 168,750,706
Interest received 39,480,578 43,622,127 81,932,128 86,336,755
Income taxes paid (16,856,572) (25,914,106) (23,221,828) (34,750,519)
Net cash flows from operating activities 103,971,604 89,729,392 244,406,221 220,336,942
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends received 5,139 6,375 8,338 8,311
Proceeds from (purchase of) available-for-sale inv. (1,687) -- (1,687) --
Proceeds from (purchase of) short-term cash investment - 233,500,000 211,500,000 333,000,000
Decrease (increase) in real estate properties for lease (11,082) -- (11,082) --
Net cash from (used in) investing activities (7,630) 233,506,375 211,495,569 333,008,311
CASH FLOWS FROM FINANCING ACTIVITIES
Interest paid (3,690,966) (1,272,957) (5,675,691) (5,043,848)
Cash dividends and fractional shares paid -- -- 262,555 (739)
Net proceeds from (payments of) notes payable 505,099 16,178,457 (2,412,265) 8,228,632
Net cash flows from financing activities (3,185,867) 14,905,500 (7,825,401) 3,184,045
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 100,778,107 338,141,267 448,076,389 556,529,298
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 658,838,725 311,977,863 311,540,443 93,589,832
CASH AND CASH EQUIVALENTS
AT END OF THE PERIOD 759,616,832 650,119,130 759,616,832 650,119,130
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CITY & LAND DEVELOPERS, INC.
NOTES TO FINANCIAL STATEMENTS
1. Corporate Information
City & Land Developers, Incorporated (the Company) was incorporated in the Philippines on June 28, 1988. Its
primary purpose is to establish an effective institutional medium for acquiring and developing suitable land sites for
residential, office, commercial, institutional and industrial uses primarily, but not exclusively, in accordance with
the subdivision, condominium, and cooperative concepts of land-utilization and land-ownership. The average
number of employees was 71 as of June 30, 2012 and 70 as of December 31, 2011. The Company’s registered
office and principal place of business is 3rd
Floor, Cityland Condominium 10, Tower I, 156 H. V. de la Costa Street,
Ayala North, Makati City.
The Company is 49.73% owned by Cityland Development Corporation (CDC), a publicly listed company
incorporated and domiciled in the Philippines. The Company’s ultimate parent is Cityland, Inc. (CI), a company
incorporated and domiciled in the Philippines, which prepares consolidated financial statements and that of its
subsidiaries.
2. Summary of Significant Accounting and Financial Reporting Policies
Basis of Preparation
The financial statements of the Company have been prepared using the historical cost basis, except for available-
for-sale financial assets which are carried at fair values. The financial statements are presented in Philippine peso
(Peso), which is the Company’s functional currency, and rounded to the nearest Peso except when otherwise
indicated.
Statement of Compliance
The financial statements have been prepared in compliance with Philippine Financial Reporting Standards (PFRS).
Changes in Accounting Policies
The accounting policies adopted are consistent with those of the previous financial year except for the adoption of
the following new and amended Philippine Accounting Standards (PAS), PFRS and new Philippine Interpretations
based on International Financial Reporting Interpretations Committee (IFRIC) interpretations effective in 2011.
The adoption of the following revised PAS is relevant but does not have a significant impact on the financial
statements:
• Revised PAS 24, Related Party Disclosures, simplifies the identification of related party relationships,
particularly in relation to significant influence and joint control. The amendment emphasizes a symmetrical
view on related party relationships as well as clarifies in which circumstances persons and key management
personnel affect the related party relationships of an entity. The amendment also introduces an exemption from
the general related party disclosure requirements, for transactions with a government and entities that are
controlled, jointly controlled or significantly influenced by the same government as the reporting entity. The
adoption of the amendment did not have any impact on the financial position and performance of the
Company.
The adoption of the following new and amended PFRS, PAS and Philippine Interpretations are either not relevant
to or have no significant impact on the financial statements:
• Amended PAS 32, Financial Instruments: Presentation - Clarification of Rights Issues
• Amended IFRIC 14, Prepayments of a Minimum Funding Requirement
• Philippine Interpretation IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments
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Improvements to PFRS
The annual improvements process has been adopted by the International Accounting Standards Board (IASB) to
deal with non-urgent but necessary amendments to PFRS. The following summarizes the amendments that are
effective on or after January 1, 2011. The adoption of the following amendments is relevant but does not have a
significant impact on the financial statements:
• PFRS 7, Financial Instruments Disclosures, emphasizes the interaction between quantitative and qualitative
disclosures and the nature and extent of risks associated with financial instruments.
• PAS 1, Presentation of Financial Statements, clarifies that an entity will present an analysis of other
comprehensive income for each component of equity, either in the statement of changes in equity or in the
notes to the financial statements.
• PAS 34, Interim Financial Reporting, provides guidance to illustrate how to apply disclosure principles in PAS
34 and requires additional disclosures on: (a) the circumstances likely to affect fair values of financial
instruments and their classification, (b) transfers of financial instruments between different levels of the fair
value hierarchy, (c) changes in the classification of financial assets and (d) changes in contingent liabilities and
assets.
Other amendments resulting from the 2011 improvements to PFRS, PAS and Philippine Interpretations to the
following standards did not have any significant impact on the accounting policies, financial position or
performance of the Company.
• PFRS 3, Business Combinations
• PAS 27, Consolidated and Separate Financial Statements
• Philippine Interpretation IFRIC 13, Customer Loyalty Programmes
Revenue and Costs Recognition
Revenue is recognized to the extent that it is probable that the economic benefit will flow to the Company and
the amount of revenue can be reliably measured. Revenue is measured at the fair value of the consideration
received excluding VAT. The Company assesses its revenue arrangements against specific criteria in order to
determine if it is acting as principal or agent. The Company has concluded that it is acting as a principal in all
of its revenue arrangements. The following specific recognition criteria must also be met before revenue is
recognized:
Sale of real estate properties
Sales of condominium units and residential houses where the Company has material obligations under the sales
contract to provide improvements after the property is sold are accounted for under the percentage of
completion method. Under this method, revenue on sale is recognized as the related obligations are fulfilled.
Revenue from sales of completed residential lots and housing units, where a sufficient down payment has been
received, the collectability of the sales price is reasonably assured, the refund period has expired, the
receivables are not subordinated and the seller is not obliged to complete improvements, is accounted for under
the full accrual method. If the criterion of full accrual method was not satisfied, any cash received by the
Company is included in “Accounts payable and accrued expenses” in the balance sheet until all the conditions
for recording a sale are met.
Costs of Real Estate Sales
Costs of real estate sales are recognized consistent with the revenue recognition method applied. Cost of
condominium units sold before the completion of the development is determined on the basis of the acquisition
cost of the land plus its full development costs, which include estimated costs for future development works as
determined by the Company’s in-house technical staff.
In addition, cost of real estate sales of 100% completed projects represents the proportionate share of the sold
units to the total of the development cost which includes land, direct materials, labor cost and other indirect
costs related to the project. If the project is still under construction, the cost of real estate sales of the sold units
is multiplied by the percentage of completion. The cost referred to is the same total development costs and not
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only actual expenditures. The percentage of completion is based on the technical evaluation of the project
engineers as well as management’s monitoring costs, progress and improvements of the projects.
Future Changes in Accounting Policies
The Company will adopt the following standards and interpretations when these become effective subsequent to
2011. Except as otherwise indicated, the Company does not expect the adoption of these new, and amended and
improvements to PFRS, PAS and Philippine Interpretations to have significant impact on the financial statements.
Effective in 2012
• PFRS 7, Financial Instruments: Disclosures - Enhanced Derecognition Disclosure Requirements, requires
additional disclosure about financial assets that have been transferred but not derecognized to enable the user
of the Company’s financial statements to understand the relationship with those assets that have not been
derecognized and their associated liabilities.
• Amended PAS 12, Income Taxes - Deferred Taxes: Recovery of Underlying Assets, introduces a rebuttable
presumption that deferred tax on investment properties measured at fair value will be recognized on a sale
basis, unless an entity has a business model that would indicate the investment property will be consumed in
the business. If consumed, an own use basis must be adopted
Effective in 2013
• PFRS 7, Financial Instruments: Disclosures - Offsetting Financial Assets and Financial Liabilities, requires an
entity to disclose information about rights of set-off and related arrangements (such as collateral agreements).
The new disclosures are required for all recognized financial instruments that are offset in accordance with
PAS 32.
• PFRS 10, Consolidated Financial Statements, replaces the portion of PAS 27 that addresses the accounting for
consolidated financial statements. The changes introduced by PFRS 10 will require management to exercise
significant judgment to determine which entities are controlled, and therefore, are required to be consolidated
by a parent, compared with the requirements that were in PAS 27.
• PFRS 11, Joint Arrangements, replaces PAS 31, Interests in Joint Ventures and SIC-13, Jointly-controlled
Entities – Non-monetary Contributions by Ventures. PFRS 11 removes the option to account for jointly
controlled entities (JCEs) using proportionate consolidation. Instead, JCEs that meet the definition of a joint
venture must be accounted for using the equity method.
• PFRS 12, Disclosure of Interests with Other Entities, includes all of the disclosures that were previously in
PAS 27 related to consolidated financial statements, as well as all of the disclosures that were previously
included in PAS 31 and PAS 28. These disclosures relate to an entity’s interests in subsidiaries, joint
arrangements, associates and structured entities. A number of new disclosures are also required.
• PFRS 13, Fair Value Measurement, establishes a single source of guidance under PFRS for all fair value
measurements. PFRS 13 does not change when an entity is required to use fair value, but rather provides
guidance on how to measure fair value under PFRS when fair value is required or permitted.
• PAS 1, Financial Statements Presentation - Presentation of Items of Other Comprehensive Income, changes
the grouping of items presented in other comprehensive income (OCI). Items that would be reclassified (or
recycled) to profit or loss at a future point in time (e.g., upon derecognition or settlement) would be presented
separately from items that will never be reclassified. The amendment only affects the presentation and has
therefore no impact on the Company’s financial position or performance.
• Revised PAS 19, Employee Benefits, includes a number of amendments that range from fundamental changes
to simple clarifications and re-wording.
• PAS 27, Separate Financial Statements (Revised). As a consequence of the new PFRS 10 and PFRS 12 what
remains of PAS 27 is limited to accounting for subsidiaries, jointly controlled entities, and associates in
separate financial statements.
15
• PAS 28, Investments in Associates and Joint Ventures. As a consequence of the new
PFRS 11 and PFRS 12, PAS 28 has been renamed PAS 28, Investments in Associates and Joint Ventures, and
describes the application of the equity method to investments in joint ventures in addition to associates.
• Philippine Interpretation IFRIC 20, Stripping Costs in the Production Phase of a Surface Mine, applies to
waste removal costs that are incurred in surface mining activity during the production phase of the mine
(“production stripping costs”) and provides guidance on the recognition of production stripping costs as an
asset and measurement of the stripping activity asset.
Effective in 2014
• Amendments to PAS 32, Financial Instruments: Presentation - Offsetting Financial Assets and Financial
liabilities, clarifies the meaning of “currently has a legally enforceable right to set-off” and also clarify the
application of the PAS 32 offsetting criteria to settlement systems (such as central clearing house systems)
which apply gross settlement mechanisms that are not simultaneous.
Effective in 2015
• PFRS 9, Financial Instruments - Classification and Measurement, as issued reflects the first phase on the
replacement of PAS 39 and applies to classification and measurement of financial assets and financial
liabilities as defined in PAS 39. The Company will quantify the effect in conjunction with the other phases,
when issued, to present a comprehensive picture.
After consideration of the result of its impact evaluation, the Group has decided not to early adopt either PFRS
9 (2009) of PFRS 9 (2010) for its 2012 financial reporting, thus the interim report as of June 30, 2012 does not
reflect the application of the requirements and does not contain a qualitative and quantitative discussion of the
result of the company’s impact evaluation.
Standard Issued but not yet Effective
• Philippine Interpretation IFRIC 15, Agreements for the Construction of Real Estates, covers accounting for
revenue and associated expenses by entities that undertake the construction of real estate directly or through
subcontractors. The interpretation requires that revenue on construction of real estate be recognized only upon
completion, except when such contract qualifies as construction contract to be accounted for under PAS 11,
Construction Contracts, or involves rendering of services in which case revenue is recognized based on stage
of completion. Contracts involving provision of services with the construction materials and where the risks
and reward of ownership are transferred to the buyer on a continuous basis will also be accounted for based on
stage of completion. The SEC and the Financial Reporting Standards Council (FRSC) have deferred the
effectivity of this interpretation until the final Revenue standard is issued by IASB and an evaluation of the
requirements of the final Revenue standard against the practices of the Philippine real estate industry is
completed. The Company will quantify the effect when the final Revenue standard is issued.
Additional disclosures required by these amendments will be included in the financial statements when these
amendments are adopted.
Events After the Balance Sheet Date
Post year-end events that provide additional information about the Company’s position at the end of reporting
period (adjusting events) are reflected in the financial statements. Post year-end events that are not adjusting events
are disclosed in the notes to the financial statements when material.
Segment Reporting
The Company’s operating business are organized and managed separately according to the nature of the products
and services provided, with each segment representing a strategic business unit that offers different products and
serves different markets. The Company’s asset-producing revenues are located in the Philippines (i.e., one
geographical location). Therefore, geographical segment information is no longer presented.
16
3. Significant Accounting Judgments, Estimates and Assumptions
The preparation of the financial statements requires management to make judgments, estimates and assumptions
that affect the amounts reported in the financial statements and accompanying notes. In the opinion of
management, these financial statements reflect all adjustments necessary to present fairly the results for the periods
presented. Actual results could differ from such estimates.
4. Cash and Cash Equivalents
June 2012 Dec. 2011
Cash on hand and in banks 3,516,832 6,040,443
Cash equivalents 756,100,000 305,500,000
759,616,832 311,540,443 Cash in banks earn interest at the respective bank deposit rates. Short-term investments are made for varying
periods of up to three months depending on the immediate cash requirements of the Company, and earn interest at
the respective short-term investment rates.
Short-term cash investments amounting to P=211.50 as of December 31, 2011 are investments in banks with
maturities of more than three months to one year from the dates of acquisition and earn interest at the prevailing
market rates.
5. Available-for-Sale Investments
Available-for-sale investments pertain to the fair value of the investments in equity securities amounting to P=1.30
million and P=0.96 million as of June 30, 2012 and December 31, 2011, respectively. The recovery (decline) in
value of these securities is presented as Net changes in fair values of available-for-sale investments in the
stockholder’s equity section of the balance sheet.
6. Installment Contracts Receivable
This account consists of installment contracts receivable arising from the sale of real estate properties. The
installment contracts receivable on sales of real estate are collectible in monthly installments for periods ranging
from one (1) to ten (10) years and bear monthly interest rates of 0.67% to 2% computed on the diminishing
balance.
The portion due within one year (net of current portion of unrealized gross profit, estimated development costs for
unsold units, and deferred vat) amounted to P=244.75 million in June 2012 and P=150.22 million in December 2011.
7. Other Receivables
June 2012 Dec. 2011
Advances to customers 3,128,847 2,101,579
Accrued interest 1,592,589 3,821,367
Retention 678,112 920,200
Others 3,728,242 2,419,704
9,127,790 9,262,850
The portion due within one year amounted to P=8.53million in June 2012 and P=8.07 million in December 2011.
17
8. Real Estate Properties for Sale and Held for Future Development
Real estate properties for sale consist of cost incurred in the development of condominium units and residential
houses for sale amounting to P=214.66 million and P=391.69 million as of June 30, 2012 and December 31, 2011,
respectively.
Condominium units and residential houses for sale accounts include borrowing costs incurred in connection with
the development of the properties P=2.11 million as of December 2011. The capitalization rate used to determine the
amount of borrowing costs eligible for capitalization was and 3.86% in December 2011.
In 2011, the Company acquired a parcel of land amounting to P=109.81 million for future development.
9. Investment Properties
Investment properties are rented out at different rates generally for a one-year term renewable every year. These
investment properties were appraised by independent firms of appraisers at various dates.
10. Accounts Payable and Accrued Expenses
June 2012 Dec. 2011
Trade payables 31,958,192 28,764,654
Deposits 2,932,396 10,062,434
Accrued expenses:
Development costs 255,335,282 311,228,188
Director’s fee 6,995,703 14,841,537
Interest 1,286,373 1,343,688
Taxes, premiums, others 3,320,957 769,561
Withholding taxes 852,434 2,279,132
Dividends 102,729,677 1,060,777
Others 3,365,032 3,848,307
408,776,046 374,198,278
The portion due within one year amounted to P=407.32 million in June 2012 and P=209.90 million in December
2011.
11. Loans and Notes Payable
June 2012 Dec. 2011
Short-term commercial papers (STCP) with various
maturities and interest rate ranging from 2.94% to
4.84% as of June 2012 and 3.50% to 4.77% in
Dec. 2011
134,450,000
139,450,000
Short-term promissory notes enrolled with HGC
with various maturities and interest rate ranging
from 1.90% to 3.00% as of June 2012 and 1.70%
to 3.40% in Dec. 2011
185,158,296
182,570,561
319,608,296 322,020,561 On September 12, 2011 and September 3, 2010, the Philippine Securities and Exchange Commission (SEC)
authorized the Company to issue P=200.00 million worth of STCP registered with the SEC in both years, in
accordance with the provision of the Securities Regulation Code and its implementing rules and regulations, the
Code of Corporate Governance and other applicable laws and orders.
18
In 2011 and 2010, the Company entered into a contract of guaranty under a Revolving Cash Guaranty Line with HGC
in the amount of P=200.00 million coverage on the Company’s STCP. The guaranty covers the unpaid principal due
on the outstanding STCP and unpaid interest thereon of 10% per annum. The guaranty premium paid was 0.90% per
annum based on enrolled commercial papers in 2011 and 2010.
12. Related Party Disclosures
Parties are considered to be related if one party has the ability to control, directly or indirectly, the other party or
exercise significant influence over the other party in making financial and operating decisions. It includes
companies in which one or more of the directors and/or shareholder of the Company either has a beneficial
controlling interest or are in a position to exercise significant influence therein.
The Company discloses the nature of the related party relationship and information about the transactions and
outstanding balances necessary for an understanding of the potential effect of the relationship on the financial
statements, including, as a minimum, the amount of outstanding balances and its terms and conditions including
whether they are secured, and the nature of the consideration to be provided in settlement.
The following transactions have been entered into with related parties in the normal course of business:
Related Party
Interest
Income for
Advances to
Related Parties(s)
Interest
Expense for
Advances from
Related Parties(a)
Amounts
Owed by Related
Parties(b)
Amounts
Owed to Related
Parties(b)
Cityland Development June 2012 -- 30,857 89,988 --
Corporation (Parent company) Dec. 2011 98,217 72,204 -- 1,060,034
Cityland Inc. (Ultimate parent company) June 2012 7,006 -- 37,879 --
Dec. 2011 60,112 29,551 -- 954,663
Cityplans, Inc. (Affiliate under common June 2012 -- -- -- --
control) Dec. 2011 -- -- 23,182 --
June 2012 7,006 30,857 127,867 --
Dec. 2011 158,329 101,755 23,182 2,014,697 (a) Accrued interest on interest-bearing advances. (b) Non-interest bearing advances for reimbursable expenses.
13. Stockholders’ Equity
Dividends declared and paid by the Company from retained earnings were as follows:
Cash dividends:
Stockholders of
Date Approved Per share Record Date Date Paid
May 25, 2012 P=0.15 June 22, 2012 July18, 2012
June 03, 2011 P=0.14 June 17, 2011 July 13, 2011
June 07, 2010 P=0.05 July 07, 2010 August 02, 2010
June 05, 2009 P=0.07 June 22, 2009 July 16, 2009
Stock dividends:
Stockholders of
Date Approved Percentage Record Date Date Issued
May 2, 2011 20% July 14, 2011 September 9, 2011
April 30, 2010 20% June 18, 2010 July 14, 2010
May 28, 2009 20% June 26, 2009 July 22, 2009
19
On May 28, 2009, the Securities and Exchange Commission (SEC) approved the Company’s Amended Articles of
Incorporation on the application for increase in capital stock from P=400,000,000 to P=700,000,000 with par value of
P=1 each. The SEC also authorized the issuance of 20% stock dividends declared by the BOD on April 30, 2008 and
ratified by the stockholders on June 10, 2008.
On May 10, 2011, the Board of Directors authorized the transfer of appropriated retained earnings for the
development cost of Grand Emerald Tower, which was 100% completed to appropriated retained earnings to
finance the development costs of Manila Residences Bocobo has the same amount of P=100.00 million.
On June 13, 2012, the stockholders approved and ratified the following:
a. Twenty percent (20%) stock dividends from the unappropriated retained earnings as of December 31,
2011which will come from an increase in authorized capital stock. Record date of stock dividends shall be
fixed by the SEC after clearance and approval;
b. Increase its capital stock from 700,000,000 shares to 1,200,000,000 shares with par value of P=1.00 per
share;
c. Amendment of articles of incorporation to increase the authorized capital stock to 1,200,000,000 shares
with par value of P=1.00 per share.
As of June 30, 2012, the unappropriated retained earnings include the remaining balance of deemed cost adjustment
amounting toP=11.83 million, net of related deferred tax of P=5.07 million, related to real estate properties for lease
which rose when the Company transitioned to PFRS in 2005. This amount has yet to be absorbed through sales and
is restricted for the payment of dividends.
The Company’s objectives in capital management is to maintain an optimal capital structure by ensuring that debt
and equity capital are mobilized efficiently and to provide returns for stockholders and benefit for other
stakeholders.
The Company manages its capital structure and makes adjustments to it, in the light of changes in economic
conditions. It monitors capital using leverage ratios on both gross debt and net debt basis.
14. Financial Income
June 2012 June 2011
Interest income 81,412,101 85,147,677
Dividend income 19,375 8,311
81,431,476 85,155,988
15. Operating Expenses
June 2012 June 2011
Personnel (see Note 16) 35,996,326 43,909,526
Taxes and licenses 15,124,503 12,784,460
Professional fees 5,815,324 12,505,733
Insurance Expense 3,461,349 3,728,618
Membership dues 2,302,015 2,044,113
Brokers’ commission 1,537,671 1,742,714
Depreciation 1,357,431 1,357,431
Outside services 962,827 981,021
Advertising and promotion 898,268 1,237,961
Donations 710,000 --
Postage, telephone and telegraph 401,461 500,752
(Forward)
20
Transportation 203,646 239,957
Power, light and water 109,196 15,101
Repairs and Maintenance 21,405 495,494
Office supplies -- 289,238
Others 1,692,484 4,592,686
70,593,906 86,424,805
Revenue Regulations (RR) No. 10-2002 defines expenses to be classified as entertainment, amusement and
recreation (EAR) expenses and sets a limit for the amount that is deductible for tax purposes. EAR expenses are
limited to 0.5% of net sales for sellers of goods or properties or 1% of net revenues for sellers of services. For
sellers of both goods or properties and services, an apportionment formula is used in determining the ceiling on
such expenses.
16. Personnel Expenses
June 2012 June 2011
Salaries and wages 13,114,208 15,479,207
Employee Benefits and Commissions 21,070,159 26,273,265
Benefits and other social expenses 1,811,959 2,157,054
35,996,326 43,909,526
17. Financial Expense
June 2012 June 2011
Interest expense – net of amounts capitalized 5,618,377 5,129,199
Finance Charge 178,550 480,574
5,796,927 5,609,773
18. Retirement Plan
The Company, jointly with affiliated companies, has a funded, noncontributory defined benefit retirement plan
covering all of its permanent employees.
19. Income Taxes
Provision for income tax consists of:
June 2012 June 2011
Current 19,483,757 23,074,606
Deferred (2,736,951) 575,653
Final tax on interest income 2,884,076 2,497,133
19,630,882 26,147,392
20. Earnings Per Share
Earnings per share amounts were computed as follows:
June 2012 June 2011
a. Net income 149,731,258 124,515,033
b. Weighted average number of shares 676,042,298 676,042,298
c. Earnings per share (a/b) 0.221 0.184
*After retroactive effect of 20% stock dividends in 2011.
21
21. Financial Instruments
Financial Risk Management Objectives and Policies
The Company’s principal financial instruments comprise of loans and notes payable, cash and cash equivalents, and
short-term cash investments. The main purpose of these financial instruments is to finance the Company’s
operations. The Company’s other financial instruments, which include available-for-sale investments, are held for
investing purposes. The Company has various other financial assets and liabilities such as trade receivables and
trade payables, which arise directly from its operations.
It is, and has been throughout the year under review, the Company’s policy that no trading in financial instruments
shall be undertaken. The Company has no investment in foreign securities.
The main risks arising from the Company’s financial instruments are cash flow interest rate risks, credit risk,
foreign currency risks, equity price risk and liquidity risk. The Board of Directors is mainly responsible for the
overall risk management approach and for the approval of risk strategies and principles of the Company and they
are summarized as follows:
Cash flow interest rate risk
The Company’s exposure to the risk for changes in market interest rates relates primarily to the Company’s short-
term and long-term loans payable all with floating interest rates. This means that the Company assumes the
concurrent movements in interest rates and parallel shift in the yield curves.
The Company manages its interest rate risk by maintaining credit lines with financial institutions and limiting
borrowings to the Company’s cash requirements.
A sensitivity analysis to a reasonable change in the interest rates (with all other variables held constant) of 0.0959%
higher or lower, would increase or decrease the Groups’ income before income tax of P=306,504.
Credit risk
The Company trades only with recognized, creditworthy third parties. It is the Company’s policy that all customers
that wish to trade on credit terms are subject to credit verification procedures. In addition, receivable balances are
monitored on an on-going basis with the result that the Company’s exposure to bad debts is not significant.
The table below shows the Company exposure to credit risk for the components of the balance sheet. The exposure
as of June 30, 2012 is shown at gross, before taking the effect of mitigation through the use of and collateral
agreements and at net, after taking the effect of mitigation through the use of collateral agreements.
Gross Net
Loans and receivables:
Cash and cash equivalents, excluding cash on hand 759,585,831 371,994,361
Installment contract receivables 886,574,480
Other receivables 8,537,102 2,194,708
Total credit risk exposure 1,654,697,413 374,189,069
The following table summarizes the aging analysis of receivables and the credit quality of the receivables as of June
30, 2012:
Current
> One Year
Past Due But Not Impaired
Total < 30days 31 - 60 days 61 – 90 days > 90 days
Installment contracts rec. 238,200,808 641,824,273 2,996,845 1,258,059 334,603 1,959,892 886,574,480
Other receivables:
Accrued interest 1,592,589 1,592,589
Customers 1,163,328 3,124 290,391 1,672,004 3,128,847
Retention 450,000 228,112 678,112
Others 3,134,295 2,182 1,077 3,137,554
244,541,020 641,826,455 2,997,922 1,261,183 624,994 3,860,008 895,111,582
22
The table below shows the credit quality by class of asset for loan-related balance sheet lines, based on the
Company’s credit rating system as of June 30, 2012.
Medium** Past due but
High Grade* Grade not impaired Total
Cash and cash equivalents
(excluding cash on hand)
759,585,831 759,585,831
Installment contract receivables 880,025,081 6,549,399 886,574,480
Other receivables 6,299,881 42,513 2,194,708 8,537,102
1,645,910,793 42,513 8,744,107 1,654,697,413
* High Grade - financial assets with reputable counterparties and which management believes to be reasonably assured to be recoverable.
** Medium Grade - financial assets for which there is low risk on default of counterparties.
The main considerations for impairment assessment include whether any payments are overdue or if there are any
known difficulties in the cash flows of the counterparties. The Company assesses impairment into two areas:
individually assessed allowances and collectively assessed allowances.
The Company determines allowance for each significant receivable on an individual basis. Among the items that
the Company considers in assessing impairment is the inability to collect from the counterparty based on the
contractual terms of the receivables. The Company also considers the fair value of the real estate collateralized in
computing the impairment of the receivables. Receivables included in the specific assessment are those receivables
under the installment contracts receivable accounts.
Because the Company holds the title to the real estate properties with outstanding installment contracts receivable
balance and can repossess such real estate properties upon default of the customer in paying the outstanding
balance, the Company does not provide for allowance for impairment of its installment contracts receivable.
For collective assessment, allowances are assessed for receivables that are not individually significant and for
individually significant receivables where there is not yet objective evidence of individual impairment. Impairment
losses are estimated by taking into consideration the age of the receivables, past collection experience and other
factors that may affect collectibility.
Concentration Risk
The Company’s policy is to enter into transactions with a diversity of creditworthy parties to mitigate any
significant concentration of risk.
Foreign currency risk
The Company’s transactional currency exposures arises from purchases in currencies other than its functional
currency. However, the Company’s exposure to foreign currency risk is minimal. There are no outstanding foreign
currency-denominated assets and liabilities.
Equity Price Risk
Equity price risk is the risk that the fair values of equities decrease as a result of changes in the market value of
individual stock. The Company is exposed to equity securities price risk because of investments held by the
Company, which are classified on the balance sheets as available-for-sale investments.
A sensitivity analysis to a reasonable change in the equity price (with all other variables held constant) of P=0.40
higher or lower, would increase or decrease the equity by P=517,165.
Liquidity risk
Liquidity is defined as the risk that the Company could not be able to settle or meet its obligations on time or at a
reasonable price. The Company’s objective is to maintain a balance between continuity of funding and flexibility
through the use of bank loans.
23
The table below summarizes the maturity analysis of the Company’s financial liabilities as of June 30, 2012:
Up to
One Year
Above
One Year
Total
Accounts payable and accrued expenses * 404,115,513 1,452,289 405,567,802
Notes payable** 331,593,607 - 331,593,607
735,709,120 1,452,289 737,161,409 * Excludes statutory liabilities amounting to P=3,208,244 and P=2,343,105 as of June 2012 and December 2011, respectively.
** Includes interest expense amounting to P=11,985,311.
Fair Values
As defined in PAS 39, the fair value of the financial instruments approximate the carrying amounts of recorded
financial assets and liabilities as of June 30, 2012 and December 31, 2011.
June 30, 2012 December 31, 2011
Carrying value Fair value Carrying value Fair value
Financial assets
Cash and cash equivalents 759,616,832 759,616,832 311,540,443 311,540,443
Short-term cash investments - - 211,500,000 211,500,000
Available-for-sale investments 1,301,274 1,301,274 960,623 960,623
Installment contracts receivable 886,574,480 886,574,480 871,354,650 871,354,650
Other receivables 8,537,107 8,537,107 8,873,868 8,873,868
1,656,029,693 1,656,029,693 1,404,229,584 1,404,229,584
Financial liabilities
Accounts payable & accrued
expenses *
405,567,802
405,567,802
371,855,173
371,855,173
Loans and notes payable 319,608,296 319,608,296 322,020,561 322,020,561
725,176,098 725,176,098 693,875,734 693,875,734
* Excludes statutory liabilities amounting to P=6,355,980 and P=2,343,105 as of June 2012 and December 2011, respectively.
Cash and cash equivalents, short-term cash investments, other receivables, and accounts payable and accrued
expenses
Due to the short-term nature of the transactions the fair value of cash and cash equivalents, short-term cash
investments, other receivables, and accounts payable and accrued expenses, approximate amount of consideration
at the time of initial recognition.
Available-for-sale investments
Available-for-sale investments are stated at fair value based on quoted market prices.
Installment contracts receivable
The fair value of installment contracts receivable cannot be reasonably estimated due to the significant volume of
transactions and the varied terms and maturities.
Loans and notes payable
Due to the monthly/quarterly repricing of interest, loans and notes payable are stated at fair value.
22. Business Segments
The Company derives its revenues primarily from the sale and lease of real estate properties. The Company does
not have any major customers and all sales and leases of real estate properties are made to external customers.
Segment Revenues and Expenses:
June 2012 June 2011
Sales of real estate 389,186,160 95.41% 502,359,718 97.00%
Rental income 2,209,625 0.05% 382,318 0.07%
Others 16,489,602 4.54% 15,131,237 2.93%
407,885,387 100.00% 517,873,273 100.00%
The Company’s real estate projects, investments, and properties under lease are primarily located in Metro Manila.
24
CITY & LAND DEVELOPERS, INCORPORATED
SCHEDULE OF FINANCIAL SOUNDNESS INDICATORS As of and for the Period Ending June 30, 2012, December 31, 2011 & 2010
Financial Ratios June 30, 2012
(Unaudited) December 31, 2011 December 31, 2010
Earnings per share*
P 0.44
P 0.47
P0.39
Return on Equity* 20.06% 21.95% 22.02%
Interest Rate Coverage Ratio 31.39 36.95 493.80
Asset-to-equity Ratio 1.54 1.54 1.59
Debt-to-equity Ratio 0.21 0.22 0.29
Current ratio 1.68 2.00 2.10
Acid-test Ratio 1.38 1.26 1.20
* annualized