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Empresas ICA Announces Unaudited Third Quarter 2014 Results

MEXICO CITY, Oct. 24, 2014 (GLOBE NEWSWIRE) -- Empresas ICA, S.A.B. de C.V. (BMV:ICA.MX) (NYSE:ICA), the largest infrastructure and construction company in Mexico, announced today its unaudited results for the third quarter of 2014, which have been prepared in accordance with International Financial Reporting Standards.

The results of the third quarter of 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.

Summary for the third quarter

The results of the third quarter of 2014 show significant increases in revenues, operating income and Adjusted EBITDA. Revenues increased 13% to Ps. 8,752 million as compared to 3Q13, principally as the result of growth in the Concessions and Airports segments. Operating Income was Ps. 1,112 million, an increase of 75%, and Adjusted EBITDA reached Ps. 1,501 million, an increase of 51% as compared to 3Q13. As a result of this performance, the Adjusted EBITDA margin reached 17.2%. Backlog rose as a result of the award of the Monterrey VI aqueduct project, among others.

During the first nine months of 2014, ICA delivered sustained growth in revenues, margins, and backlog. The Construction segment showed a clear recovery as a result of the favorable performance of the works contracted as well as the results of Facchina Construction Group (FCG). The Concessions segment delivered strong increases in performance indicators as a result of the high rates of growth associated with putting projects into operation. The Airports segment contributed to the improvement in results with increases in both aeronautical and non-aeronautical revenues.

Consolidated Results 9 months
Ps. million 3Q13 3Q14 % Chg 2013 2014 % Chg
Revenues 7,765 8,752 13 21,828 25,795 18
Operating Income 635 1,112 75 2,318 3,354 45
Consolidated Net Income (Loss) 447 (519) (216) 384 (260) (168)
Net Income (Loss) of Controlling Interest 241 (769) (419) (96) (942) (879)
Adjusted EBITDA 997 1,501 51 3,471 4,627 33
Operating Margin 8.2% 12.7% 10.6% 13.0%
Adjusted EBITDA Margin 12.8% 17.2% 15.9% 17.9%
EPS (Ps.) 0.39 (1.28) (424) (0.16) (1.54) (873)
EPS ADS (US$) 0.12 (0.39) (416) (0.05) (0.46) (848)
Key Indicators Dec-13 Sep-14 % Chg
Construction: Backlog 30,658 34,134 11
Contracted Mining Services 5,700 4,551 (20)

  • Construction backlog grew 11% to Ps. 34,134 million, as compared to December 31, 2013, reversing the decreasing trend of the first two quarters.
  • Backlog of non-consolidated subsidiaries and joint ventures also rose 128% to Ps. 25,216 million. Long-term contracts for mining and other services were Ps. 4,551 million.

Key Indicators 3Q13 3Q14 % Chg 2013 2014 % Chg
Concessions: Highway traffic, ADTV 34,927 42,324 21 27,406 42,895 57
Airports: Passenger traffic (thousands) 3,620 3,953 9 9,857 10,768 9

  • The traffic volumes for the concessioned highways rose 21% as a result of the increase in most of the operating projects.
  • The Construction segment contributed 72% of consolidated revenues and 30% of Adjusted EBITDA in 3Q14.
  • Concessions contributed 15% of revenues and 36% of Adjusted EBITDA.
  • Airports contributed 13% of revenues and 34% of Adjusted EBITDA.
  • As of September 30, 2014, Concessions participated in 18 projects: ten highways, five water projects, two social infrastructure projects, and a port. Of these, eight were in operation, and ten were in the construction phase.
  • Consolidated net loss was Ps. 519 million in 3Q14, and the loss of the controlling interest was Ps. 769 million, or Ps. 1.28 per share or US$ 0.39 per ADS. The loss principally resulted from the exchange loss included in the comprehensive financing cost.

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

Conference Call Invitation

  • ICA's conference call will be held on Monday, October 27, 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 17748544. 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 November 3, 2014 by calling toll-free (855) 859-2056 from the U.S. or +1 (404) 537-3406 internationally, again using conference ID 17748544.

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, ICA is listed on the Mexican and New York Stock exchanges. For more information, visit https://www.ica.com.mx/es/home.

CONTACT: For more information, please contact: Ana Paulina Rubio ana.rubio@ica.mx Elena Garcia elena.garcia@ica.mx relacion.inversionistas@ica.mx +(5255) 5272 9991 x 3608 Gabriel de la Concha gabriel.delaconcha@ica.mx Corporate Finance Director and Treasurer Victor Bravo victor.bravo@ica.mx Chief Financial Officer In the US: Daniel Wilson, Zemi Communications +(1212) 689 9560 dbmwilson@zemi.com

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