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Empresas ICA Announces Unaudited Fourth Quarter and Full Year 2014 Results

MEXICO CITY, Feb. 27, 2015 (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 and full year 2014, which have been prepared in accordance with International Financial Reporting Standards.

Summary for the fourth quarter and full year 2014

Fourth quarter 2014 revenues grew substantially, with increases in all segments. Adjusted EBITDA rose 19% to Ps. 1,510 million as compared to 4Q13.

During the full year 2014, ICA delivered sustained growth in revenues, margins, and backlog, with revenue growth in excess of guidance. Adjusted EBITDA reached a record Ps. 6,138 million, with an Adjusted EBITDA margin of 16.7%. The Construction segment delivered 24% growth in revenue and a 31% increase in Adjusted EBITDA, as a result of the favorable performance of works contracted in Mexico and the consolidation effective 2Q14 of Facchina Construction Group (FCG) in the U.S. Consolidated backlog rose 16% to Ps. 35,545 million. Concessions segment revenues rose 21% and Adjusted EBITDA increased 11%, as a result of the high rates of vehicle traffic growth. The Airports segment continues to deliver strong, stable results reflecting the double-digit increases in passenger traffic.

For the full year and specifically in 4Q14, ICA's comprehensive financing cost was affected by the depreciation of the Mexican peso against the U.S. dollar. This affected the net result and leverage ratios. However, the currency depreciation does not have an immediate impact on cash flows.

Consolidated Results 12 months
Ps. million 4Q13 4Q14 % Chg 2013 2014 % Chg
Revenues 7,729 10,962 42 29,556 36,757 24
Operating Income 814 1,021 25 3,133 4,375 40
Consolidated Net Income (Loss) 1,038 (1,826) -- 1,422 (2,086) --
Net Income (Loss) of Controlling Interest 520 (2,082) -- 424 (3,024) --
Adjusted EBITDA 1,264 1,510 19 4,735 6,138 30
Operating Margin 10.5% 9.3% 10.6% 11.9%
Adjusted EBITDA Margin 16.4% 13.8% 16.0% 16.7%
EPS (Ps.) 0.85 (3.47) -- 0.70 (4.96) --
EPS ADS (US$) 0.26 (0.94) -- 0.21 (1.35) --

  • Construction backlog grew 16% to Ps. 35,545 million, as compared to December 31, 2013. In addition, long-term contracts for mining and other services were Ps. 5,108 million.
  • In addition, backlog of non-consolidated subsidiaries and joint ventures rose 297% to Ps. 43,921 million, of which ICA's proportionate share was Ps. 21,230 million.

Key Indicators Dec-13 Dec-14 % Chg
Construction: Backlog 30,658 35,545 16
Contracted Mining Services 5,700 5,108 (10)
Non Consolidated and Affiliates and Joint Ventures 11,050 43,921 297

  • The Construction segment contributed 80% of consolidated revenues and 36% of Adjusted EBITDA in 4Q14.
  • Concessions contributed 11% of revenues and 39% of Adjusted EBITDA in 4Q14.
  • The traffic volumes for the concessioned highways in 4Q14 rose 16% as a result of traffic growth in most of the operating projects.

Key Indicators 4Q13 4Q14 % Chg 2013 2014 % Chg
Concessions: Highway traffic, ADTV 38,356 44,550 16 33,390 42,634 28
Airports: Passenger traffic (thousands) 3,435 3,928 14 13,292 14,695 11

  • As of December 31, 2014, Concessions participated in 17 projects: ten highways, four water projects, two social infrastructure projects and one port. Of these, ten were operational, one in the testing phase, and six were under construction.
  • Airports contributed 9% of revenues and 25% of Adjusted EBITDA in 4Q14.
  • Consolidated net loss was Ps. 1,826 million in 4Q14, and the loss of the controlling interest was Ps. 2,086 million, equivalent to Ps. 3.47 per share or US$ 0.94 per ADS. The loss resulted principally from the exchange loss of Ps. 2,845 million included in comprehensive financing cost.

2015 Outlook

  • ICA expects that revenues will increase by 10% to 12% percent in 2015, with an Adjusted EBITDA margin of 14% to 16%, excluding one-time gains or losses. This outlook is supported by the Company's substantial backlog of projects and international businesses.
  • ICA also expects to realize total gross proceeds from asset monetizations of at least Ps. 5,000 million in 2015. Most proceeds are expected to be used for debt reduction.
  • This outlook is based on current exchange rates and existing timetables for project execution and the pipeline of potential projects in Mexico and abroad. Numerous factors, including changes in the overall economic environment, delays in project execution, delays in receiving governmental approvals for asset sales, or inability to contract required financing, among others, could affect this outlook. ICA undertakes no obligation to revise or update this outlook based on changed conditions.

Conference Call Invitation

  • ICA's conference call will be held on Monday, March 2, at 11:00 am Eastern Time (10:00 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 83680644. 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 March 9, 2015 by calling toll-free (855) 859-2056 from the U.S. or +1 (404) 537-3406 internationally, again using conference ID 83680644.
  • The complete earnings report is available at http://ir.ica.mx.

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 www.ica.mx/ir.

CONTACT: For more information please contact: Elena Garcia elena.garcia@ica.mx Gabriela Orozco gabriela.orozco@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 +(1212) 689 9560 dbmwilson@zemi.com

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