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Empresas ICA Announces Unaudited First Quarter 2015 Results

MEXICO CITY, April 29, 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 first quarter 2015, which have been prepared in accordance with International Financial Reporting Standards.

Summary for the first quarter of 2015

Consolidated revenues increased 11%, led by growth in the Construction and Airports segments. Concessions revenues were unchanged compared to the prior year period. Consolidated operating income and Adjusted EBITDA increased 7% and 6%, respectively, compared to 1Q14. The Adjusted EBITDA margin reached 19%. Backlog was Ps. 62,203 million, including mining services contracts and contracts of affiliates and joint ventures, essentially unchanged from December 2014 levels.

Construction segment revenues rose 7%, led by the contribution from international operations. Concessions traffic volumes grew 7%, and the Agua Prieta water treatment plant and the El Realito aqueduct started operations. Airport traffic volumes rose 18%.

ICA's comprehensive financing cost increased by Ps. 1,625 million as a result of 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.

In April 2015, ICA signed an agreement to create an operational platform dedicated to transportation projects in Mexico. The platform initially includes four projects: the Acapulco Tunnel, the Mayab Tollroad, the Rio Verde – Ciudad Valles Highway, and the La Piedad Bypass. Completion of the transaction is subject to standard closing conditions and approval from the Government of Mexico, and is targeted for the second quarter of 2015.

Consolidated Results
Ps. million 1Q14 1Q15 % Chg
Revenues 7,980 8,822 11
Operating Income 1,081 1,155 7
Consolidated Net Income 237 (708) --
Net Income (Loss) of Controlling Interest (24) (846) --
Adjusted EBITDA 1,579 1,676 6
Operating Margin 13.5% 13.1%
Adjusted EBITDA Margin 19.8% 19.0%
EPS (Ps.) (0.04) (1.38) --
EPADS (US$) (0.01) (0.36) --
Key Indicators Dec-14 Mar-15 % Chg
Construction: Backlog 36,957 36,171 (2)
Contracted Mining Services 5,108 6,357 24
Non-Consolidated Affiliates and Joint Ventures 43,921 40,993 (7)

  • Construction backlog was Ps. 36,171 million, as compared to 36,957 million as of December 31, 2014. New contracts and net contract increases were Ps. 4,491 million, principally for international projects.
  • Long-term contracts for mining and other services were Ps. 6,357 million, up 24% compared to December 2014.
  • In addition, backlog of non-consolidated subsidiaries and joint ventures reached Ps. 40,993 million, of which ICA's proportionate share was Ps. 19,675 million.
  • The Construction segment contributed 73% of consolidated revenues and 25% of Adjusted EBITDA in 1Q15.
  • Concessions contributed 15% of revenues and 43% of Adjusted EBITDA in 1Q15.

Key Indicators 1Q14 1Q15 % Chg
Concessions: Highway traffic, ADTV 3,260 3,480 7
Airports: Passenger traffic (thousands) 3,236 3,803 18

  • The traffic volumes for the concessioned highways in 1Q15 rose 7% as a result of traffic growth in most of the operating projects.
  • As of March 31, 2015, Concessions participated in 18 projects: ten highways, four water projects, two social infrastructure projects, one port, and one energy project. Of these, eleven were operational, and seven were under construction.
  • Airports contributed 12% of revenues and 32% of Adjusted EBITDA in 1Q15.
  • Consolidated net loss was Ps. 708 million in 1Q15, and the loss of the controlling interest was Ps. 846 million, equivalent to Ps. 1.38 per share or US$ 0.36 per ADS. The loss resulted principally from the exchange loss of Ps. 1,080 million included in comprehensive financing cost.

The complete earnings report is available on the Investor Relations page of ICA's website, at www.ica.mx/ir.

Conference Call Invitation

  • ICA's 1Q15 earnings conference call will be held on Thursday, April 30, 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 31243203. 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 7, 2015 by calling toll-free (855) 859-2056 from the U.S. or +1 (404) 537-3406 internationally, again using conference ID 31243203.

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 In the US: Daniel Wilson +(1212) 689 9560 dbmwilson@zemi.com

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