Empresas ICA Announces Unaudited Third Quarter 2013 Results

Empresas ICA, S.A.B. de C.V. Logo

MEXICO CITY, Oct. 25, 2013 (GLOBE NEWSWIRE) -- Empresas ICA, S.A.B. de C.V. (BMV:ICA) (NYSE:ICA), the largest infrastructure and construction company in Mexico, announced today its unaudited results for the third quarter of 2013.

Summary for the Third Quarter

ICA generated strong increases in operating income and Adjusted EBITDA driven by the development of concessioned projects in the third quarter of 2013. The Construction segment continues recovering work volumes in the execution of its projects. ICA generated Ps. 1,197 million in operating income, an increase of 70% as compared to 3Q12, and Ps. 1,556 million in Adjusted EBITDA, an increase of 27%. This strong performance was principally the result of the continued rapid growth of the Concessions and Airports segments. As a result, the Adjusted EBITDA margin reached 18.6%.

Consolidated revenues decreased in 3Q13, principally as a result of obstacles for the execution of new projects. Despite efforts to accelerate the rate of construction of these projects, delays in the delivery of rights of way, adverse weather, and delays in payments by clients affected construction revenue. In particular, the storms that hit Mexico in September severely impacted Guerrero, Oaxaca, Tamaulipas, and Veracruz. Several ICA projects were affected, with the impacts likely to extend to the fourth quarter.

Taking into account the first nine months results and the environment expected for the infrastructure sector for the rest of the year, ICA now expects that total revenues for the year will not grow as compared to 2012, while full year Adjusted EBITDA is expected to remain in the range of 13 to 16%.

Consolidated Results 9 months
Ps. million 3Q12 3Q13 % Chg 2012 2013 % Chg
Revenues 9,317 8,363 (10) 28,246 23,416 (17)
Operating Income 702 1,197 70 2,340 3,711 59
Consolidated Net Income (Loss) 510 447 (12) 1,691 384 (77)
Net Income (Loss) of Controlling Interest 351 241 (31) 1,342 (96) (107)
Adjusted EBITDA 1,229 1,556 27 4,100 4,847 18
Operating Margin 7.5% 14.3% 8.3% 15.8%
Adjusted EBITDA Margin 13.2% 18.6% 14.5% 20.7%
EPS (Ps.) 0.58 0.39 (32) 2.21 (0.16) (107)
EPS ADS (US$) 0.18 0.12 (33) 0.69 (0.05) (107)

Total revenues in 3Q13 decreased 10% to Ps. 8,363 million, as compared to the prior year period. Construction revenues decreased 23% year over year. At the same time, construction revenues have steadily increased during the course of 2013, with third quarter revenues more than 30% above the levels of 1Q13 and 11% above 2Q13. Revenues from the Concessions segment increased 116%, and Airports increased 8%.

Consolidated debt decreased to Ps. 49,036 million as of September 30, from Ps. 54,496 million as of June 30, 2013, principally as a result of repayment of short-term debt in the Corporate segment as a result of the use of proceeds from the sale of ICA's stake in RCO and OMA shares. The accounting effect of the sale of 17.25% of OMA's shares is shown in the equity account, as it was a transaction between shareholders and ICA continues to exercise control.

Key Indicators Dec-12 Sep-13 % Chg
Construction: Backlog 32,734 33,592 3
Contracted Mining Services 8,166 6,536 (20)

Construction backlog grew 3% to Ps. 33,592 million as compared to December 31, 2012 levels. In addition to construction backlog, long-term mining and other services contracts reached Ps. 6,536 million, and backlog of non-consolidated subsidiaries and joint ventures reached Ps. 9,612 million.

Key Indicators 3Q12 3Q13 % Chg 2012 2013 % Chg
Concessions: Highway traffic, ADTV 18,940 34,877 84 18,369 31,707 73
Airports: Passenger traffic (thousands) 3,446 3,619 5 9,380 9,857 5

  • Construction contributed 72% of consolidated revenue and 32% of Adjusted EBITDA in 3Q13.
  • Concessions contributed 18% of consolidated revenue and 44% of Adjusted EBITDA in 3Q13.
  • As of September 30, 2013, ICA's Concessions segment was participating in 17 projects, including ten highways, four water projects, two social infrastructure projects, and one port. Of these, nine were in full operation, and eight under construction.
  • Airports contributed 10% of consolidated revenue and 24% of Adjusted EBITDA in 3Q13.
  • Consolidated net income was Ps. 447 million in 3Q13 and net income of the controlling interest was Ps. 241 million in 3Q13. Earnings per share were Ps. 0.39 and earnings per ADS were US$ 0.12.

The full earnings report is available at www.ica.com.mx.

Conference Call Invitation

ICA's conference call will be held on Monday, October 28, at 11:00 am Eastern Time (9:00 am Mexico City time). To participate, please dial toll-free (855) 826-6151 from the U.S. or +1 (559) 549-9841 internationally. The conference ID is 77227673. The conference call will be Webcast live through streaming audio and available on ICA's website at http://www.ica.com.mx/ir

A replay will be available until November 4, 2013 by calling toll-free (855) 859-2056 from the U.S. or +1 (404) 537-3406 internationally, again using conference ID 77227673.

This press release may contain projections or other forward-looking statements related to ICA that reflect ICA's current expectations or beliefs concerning future events. Such forward-looking statements are subject to various risks and uncertainties and may differ materially from actual results or events due to important factors such as changes in general economic, business or political or other conditions in Mexico, Latin America or elsewhere, changes in capital markets in general that may affect policies or attitudes towards lending to Mexico or Mexican companies, changes in tax and other laws affecting ICA's businesses, increased costs, unanticipated increases in financing and other costs or the inability to obtain additional debt or equity financing on attractive terms and other factors set forth in ICA's most recent filing on Form 20-F and in any filing or submission ICA has made with the SEC subsequent to its most recent filing on Form 20-F. All forward-looking statements are based on information available to ICA on the date hereof, and ICA assumes no obligation to update such statements.

Empresas ICA, S.A.B. de C.V. is Mexico's largest infrastructure company. ICA carries out large-scale civil and industrial construction projects and operates a portfolio of long-term assets, including airports, toll roads, water systems, and real estate. Founded in 1947, ICA is listed on the Mexican and New York Stock exchanges. For more information, visit www.ica.com.mx/ir

CONTACT: Ana Paulina Rubio ana.rubio@ica.mx Elena Garcia elena.garcia@ica.mx Rebeca Avalos Rebeca.avalos@ica.mx relacion.inversionistas@ica.mx (5255) 5272 9991 ext.3608 Gabriel de la Concha, CIO gabriel.delaconcha@ica.mx Victor Bravo, CFO victor.bravo@ica.mx In the United States: Daniel Wilson, Zemi Communications (1212) 689 9560 dbmwilson@zemi.com

Source:Empresas ICA, S.A.B. de C.V.