A family-owned ‘death care business’
Emeterio Sd. Perez
GOLDEN Bria Holdings Inc. (HVN) belongs to a group of companies either owned or controlled by the family of Sen. Cynthia Villar who is married to former Sen. Manuel Villar.
One of its two principal stockholders is Fine Properties Inc. which indirectly owns 412.058 million HVN common shares which are equivalent to 63.97 percent of 644.118 million outstanding common shares.
Cambridge Group Inc. directly holds 150 million HVN common shares or 23.29 percent and, indirectly, 8.744 million HVN common shares or 1.36 percent.
The two stockholders’ indirectly owned HVN common shares are lodged with PCD Nominee Corp.
Golden Bria’s two principal stockholders and the company’s seven-person board hold 570.802 million HVN common shares, or 88.62 percent, and 5.105 million HVN common shares or 0.79 percent, respectively.
Thus, the public stockholders hold the remaining 68.211 million HVN common shares or 10.59 percent.
All these holdings totalled 644,117,649 HVN outstanding common shares which are all listed on the Philippine Stock Exchange.
As a holding company owned by another holding company, Golden Bria owns and manages at least 10 Golden Haven parks in what it calls “death care business”.
It also engages in property development thru Bria Homes Inc. which is a wholly owned subsidiary.
Financials
At par value of P1 per HVN common share, Golden Bria has 644.118 million outstanding common. Its issuances of common shares resulted in additional paid-in capital (APIC) of P2.97 billion or P4.611 per HVN common share.
On the other hand, Golden Bria’s P644.118 million outstanding capital plus P2.97 billion APIC equals P3.614 billion. This translates to P5.611 per HVN common share.
Dividing P3,614,326,402 by 644,117,649 may not be the way to compute Golden Bria’s entries in its financial filing. However, the computation is intended only to inform the public and the company’s stockholders the cost of issuing common shares.
The numbers are found in Golden Bria’s financial statements for 2017 and 2016. While that of 2017 is consolidated, the one for 2016 was only for parent company which refers to Golden Bria.
This is the reason for the sudden decline of the company’s total assets to P1.482 billion from P10.539 billion.
The same is true with total current liabilities which, as consolidated, amounted to P6.714 billion. Golden Bria had P559.711 million in 2016.
Under equity, Golden Bria reported capital stock of 494.118 million and P628.928 million APIC in 2016. As consolidated, Golden Bria’s retained earnings of P896.388 million in 2017, dropped to P197.415 million in 2016.
Due Diligencer based these numbers on Golden Bria’s financial statements for 2016 and 2017 as audited by Nelson J. Dinio of Punongbayan & Araullo.
Updated financials
From January to June 2018, Golden Bria more than doubled its consolidated retained earnings to P1.493 billion from P896.388 million as of Dec. 31, 2017.
The company said the latter is based on an audited financial filing.
Golden Bria valued its consolidated total current assets at P13.261 billion, up from P10.539 billion as of Dec. 31. 2017.
Its total assets jumped to P16.203 billion from P13.205 billion.
The company’s liabilities rose to P11.086 billion as of June 30, 2018 from P8.69 billion as of Dec. 31, 2017.
These included non-current liabilities of P2.155 billion, up from P1.975 billion in 2017.
From January to June 2018, Golden Bria, according to unaudited financial statements, had gross revenues of P2.621 billion, up from P1.691 billion in the same period in 2017.
However, Golden Bria reported cost of sales and services of P1.305 billion and other operating expenses of P517.297 million for a total operating expenses of P1.823 billion from January to June 2018.
Minus taxes, the company said its net profit surged to P596.366 million in the first six months of 2018 compared with P319.108 million in the same period in 2017.
Due Diligencer’s take
Golden Bria said its financial filings also include a “subsidiary” referring to Bria Homes Inc. Formerly known as Golden Haven Inc., it is a unit of Fine Properties.
As a listed company, Golden Bria sold to the public 74.118 million HVN common shares at P10.50 per common share. The offering grossed the company P778.235 million.
Minus expenses of P75.235 million from the initial public offering (IPO), it said it netted P703 million.
While it sold only 74.118 million HVN commonshares under IPO, Golden Bria listed its 644.118 million outstanding common shares which is the more common practice allowed by PSE and Securities and Exchange Commission (SEC).
Nothing is wrong, though, with Golden Bria’s listing. After all, those who had bought HVN common shares when these were sold to them in June 2016 could have made handsome profits if they still own the shares.
At the stock’s market price of P317, Golden Bria’s public stockholders are way ahead from IPO price of P10.50 per HVN common share.
The stock even hit a 52-week high of P392, according to PSE’s website.
Is “death care business” really profitable? Just asking.
Email: esdperez@gmail.com
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