Empresas ICA Announces Unaudited First Quarter 2014 Results

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

MEXICO CITY, April 28, 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 first quarter of 2014, which have been prepared in accordance with International Financial Reporting Standards.

First Quarter 2014 Summary and Full Year Outlook

ICA's first quarter 2014 results reflect the trends in recent quarters, with solid results in the Concessions business and sound results in the Airports business.

ICA expects that full year 2014 revenues will rebound and increase an estimated 10% to 12%, compared to 2013, principally because of the robust growth expected in Concessions and Airports. ICA also expects to generate an Adjusted EBITDA margin of approximately 14% to 16%, remaining in the same range as 2012 and 2013.

The solid level of Construction backlog and the expected start of construction for new projects and the start of operations of concessions under construction support this outlook. Reaching this levels depends on signing new construction contracts and concession agreements, completing financing for projects that require financing, timing of the delivery of rights of way and required permits for projects, investment in several projects and divestment of others, and general economic and financial conditions in Mexico and key markets in Latin America, among others.

Consolidated Results
Ps. million 1Q13 1Q14 % Chg
Revenues 6,226 7,980 28
Operating Income 186 1,081 483
Consolidated Net Income 273 237 (13)
Net Income of Controlling Interest 164 (24) --
Adjusted EBITDA 672 1,579 135
Operating Margin 3.0% 13.5%
Adjusted EBITDA Margin 10.8% 19.8%
EPS (Ps.) 0.27 (0.04) --
EPADS (US$) 0.09 (0.01) --

  • Revenues in 1Q14 increased 28% to Ps. 7,980 million. Construction segment revenue increased 25%, while revenues from Concessions and Airports segments rose 86% and 7%, respectively.
  • Adjusted EBITDA increased 135% to Ps. 1,579 million in 1Q14. The Adjusted EBITDA margin was 19.8%. Operating Income was Ps. 1,081 million. This performance reflects the continuing growth of the Concessions business and improved Construction margins.
  • Consolidated net income was Ps. 237 million, and there was a net loss of the controlling interest of Ps. 24 million, as compared to the prior year period. The principal factor was an exchange loss in 1Q14 as compared to an exchange gain in 1Q13. The loss was Ps. 0.04 per share or US$ 0.01 per ADS.
  • Construction backlog was Ps. 28,130 million, 8% below the Ps. 30,658 million as of December 31, 2013.
  • Long-term mining and other services contracts increased 5% to Ps. 5,979 million as of March 31, 2014 from Ps. 5,700 million as of the end of 2013.
  • In addition, ICA's non-consolidated subsidiaries and joint ventures, principally ICA Fluor, increased total backlog by 70% to Ps. 18,971 million as of March 31, 2014.

Key Indicators Mar-13 Mar-14 % Chg
Construction: Backlog 30,658 * 28,130 (8)
Contracted Mining Services 5,700 * 5,979 5
Concessions: Highway traffic, ADTV 26,711 43,752 64
Airports: Passenger traffic (thousands) 3,029 3,236 7
* As of December 31, 2013

  • In 1Q14, Construction contributed 73% of consolidated revenue and 26% of Adjusted EBITDA; Concessions contributed 16% of consolidated revenue and 46% of Adjusted EBITDA; and Airports contributed 11% of consolidated revenue and 28% of Adjusted EBITDA.
  • As of March 31, 2014, ICA's Concessions segment was participating in 17 projects, including ten highways, four water projects, two social infrastructure projects, and one port. Of these, eight were in full operation, and nine under construction.

ICA's complete earnings report is available at http://ir.ica.mx.

Conference Call Invitation

ICA's conference call will be held on Tuesday, April 29, 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 29679322. The conference call will be Webcast live through streaming audio and available on ICA's website at http://ir.ica.mx.

A replay will be available until May 6, 2014 by calling toll-free (855) 859-2056 from the U.S. or +1 (404) 537-3406 internationally, again using conference ID 29679322.

This press release contains 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.garcia@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.