Empresas ICA Announces Unaudited Fourth Quarter 2013 Results

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

MEXICO CITY, Feb. 26, 2014 (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 fourth quarter of 2013.

Sustaining the trends shown earlier in the year, ICA generated Adjusted EBITDA of Ps. 1,262 million in the fourth quarter of 2013, an increase of 401% as compared to 4Q12. The Adjusted EBITDA margin was 16.3%. Operating income was Ps. 812 million, as compared to a loss in 4Q12. Revenues in 4Q13 decreased 16% to Ps. 7,729 million, reflecting a lower level of work execution and a slowdown in the construction sector.

For the full year 2013, ICA generated strong increases in operating income and Adjusted EBITDA compared to 2012. The Adjusted EBITDA margin was 16.0%, compared to 9.8% in 2012. The increase in margin reflects the continuing growth of the Concessions business and the transactions for recycling capital, which offset the reduction in construction activity.

The results of the fourth quarter and full year 2012 and 2013 have been restated in accordance with IFRS 5, "Non-current Assets Held for Sale and Discontinued Operations," as a result of the strategic partnership for social infrastructure projects announced on January 22, 2014 between ICA and CGL, and to include the results of housing in continuing operations, as further described below.

Consolidated Results 12 months
Ps. million 4Q12 4Q13 % Chg 2012 2013 % Chg
Revenues 9,240 7,729 (16) 38,122 29,556 (22)
Operating Income (421) 812 293 1,679 3,131 86
Consolidated Net Income (Loss) (174) 1,082 722 1,529 1,466 (4)
Net Income (Loss) of Controlling Interest (399) 681 271 955 585 (39)
Adjusted EBITDA 252 1,262 401 3,740 4,733 27
Operating Margin -4.6% 10.5% 4.4% 10.6%
Adjusted EBITDA Margin 2.7% 16.3% 9.8% 16.0%
EPS (Ps.) (0.66) 1.12 270 1.58 0.96 (39)
EPS ADS (US$) (0.20) 0.34 267 0.49 0.29 (40)

The IFRS 5 effects included:

1. Social Infrastructure projects: As a result of the agreement to sell a 70% equity stake, the operating results have been reclassified as discontinued operations. The non-current assets were classified as available for sale, and included in current assets, since it is expected that they will be recovered through a sale transaction and not through continuous use. The liabilities associated with these assets are presented in aggregate in one line item, separately from the other liabilities of the Company.

2. Housing: Since an originally agreed sale of housing assets was not completed within one year of the date of classification, results from operations have been reclassified from discontinued operations to continuing operations. In the balance sheet, the assets and the liabilities are no longer classified as available for sale.

The following table illustrates the effects of the reclassifications.

Ps. million Base Housing Social Infra. Restated
Revenues 37,486 2,045 (1,409) 38,122
Adjusted EBITDA 5,180 (497) (942) 3,740
Adj. EBITDA margin 13.8% 9.8%
Ps. million Base Housing Social Infra. Restated
Revenues 31,804 554 (2,801) 29,556
Adjusted EBITDA 6,592 63 (1,921) 4,733
Adj. EBITDA margin 20.7% 16.0%

Full year revenues were Ps. 29,556 million in 2013, as compared to a restated Ps. 38,122 million in 2012, taking into account the reclassification of Housing and the social infrastructure projects.

Full year Adjusted EBITDA was Ps. 4,733 million as compared to a restated Ps. 3,740 million in 2012, taking into account the reclassification of Housing and the social infrastructure projects.

In addition to the two accounting changes mentioned, 4Q13 results included a tax credit of Ps. 379 million, principally as a result of the cancellation of the deferred single-rate corporate tax (IETU) liability. See the section Material and Subsequent Events below for additional discussion of the tax reform that became effective in 2014.

Consolidated net income was Ps. 1,082 million in 4Q13 and net income of the controlling interest was Ps. 681 million in 4Q13. Earnings per share were Ps. 1.12 and earnings per ADS were US$ 0.34.

Key Indicators Dec-12 Dec-13 % Chg
Construction: Backlog 27,187 30,658 13
Contracted Mining Services 8,166 5,700 (30)

Construction backlog and long-term mining and other services contracts increased to Ps. 36,358 million. In addition, ICA's non-consolidated subsidiaries and joint ventures, principally ICA Fluor, had total backlog of Ps. 10,864 million.

Construction contributed 75% of consolidated revenue and 31% of Adjusted EBITDA in 2013. Concessions contributed 14% of consolidated revenue and 42% of Adjusted EBITDA in 2013. Airports contributed 12% of consolidated revenue and 27% of Adjusted EBITDA in 4Q13.

As of December 31, 2013, ICA's Concessions segment was participating in 18 projects, including 11 highways, four water projects, two social infrastructure projects, and one port. Of these, nine were in full operation, and nine under construction.

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

Conference Call Invitation

ICA's conference call will be held on Thursday, February 27, at 10:00 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 97574191. 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 March 6, 2014 by calling toll-free (855) 859-2056 from the U.S. or +1 (404) 537-3406 internationally, again using conference ID 97574191.

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, lCA is listed on the Mexican and New York Stock exchanges. For more information, visit www.ica.com.mx/ir.

CONTACT: For more information contact: Ana Paulina Rubio ana.rubio@ica.mx Elena Garcia elena.gracia@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.