Empresas ICA Announces Unaudited Second Quarter 2015 Results

MEXICO CITY, July 28, 2015 (GLOBE NEWSWIRE) -- Empresas ICA, S.A.B. de C.V. (BMV:ICA) and (NYSE:ICA), the largest infrastructure and construction company in Mexico, announced today its unaudited results for the second quarter 2015, which have been prepared in accordance with International Financial Reporting Standards.

Summary for the second quarter of 2015

ICA’s second quarter results reflect the condition of the Mexican economy, especially in the civil construction area. Concessions, Airports, and ICA Fluor generated strong results, which were offset by the Construction division, as a result of the mix of projects and increases in the cost of production.

Comprehensive backlog reached Ps. 55,168 million as of June 30, 2015; this is expected to result in an acceleration of construction activity in the second half of 2015 and in 2016.

For the first six months of 2015, total revenues were unchanged compared to the same period of 2014, with an Adjusted EBITDA margin of 17.1%.

ICA’s strategic vision to create shareholder value involves a continuous process of monetizing assets in their operational phase and the search for strategic partners. As part of this process in the second quarter, the Company completed creation of ICA OVT, a platform for managing highway concessions and acquiring other operating highway and tollroad infrastructure assets in Mexico. The transaction generated proceeds to ICA of more than Ps. 3,000 million; these resources were used principally to pay parent company short-term debt. During the second half of 2015, ICA expects to generate an additional Ps. 2,000 million through capital recycling transactions. ICA’s priority is the generation of cash from operations and capital recycling transactions in order to reduce leverage in the short-term.

Consolidated Results 6 months
Ps. million2Q142Q15% Chg 2014 2015 % Chg
Revenues 9,063 8,361 (8) 17,043 17,183 1
Operating Income 1,161 772 (34) 2,242 1,927 (14)
Consolidated Net Income 22 (357)-- 259 (1,065)--
Net Income (Loss) of Controlling Interest (149) (567)-- (173) (1,413)--
Adjusted EBITDA 1,547 1,262 (18) 3,126 2,938 (6)
Operating Margin 12.8% 9.2% 13.2% 11.2%
Adjusted EBITDA Margin 17.1% 15.1% 18.3% 17.1%
EPS (Ps.) (0.25) (0.92)-- (0.28) (2.35)--
EPADS (US$) (0.08) (0.24)-- (0.09) (0.61)--

Key Indicators Dec-14Jun-15% Chg
Construction: Backlog 36,95733,824 (8)
Contracted Mining Services 5,1085,794 13
Non-Consolidated Affiliates and Joint Ventures43,92132,618 (26)

  • Comprehensive backlog was Ps. 55,168 million, as compared to Ps. 63,295 million as of December 31, 2014. This includes construction contracts of Ps. 33,824 million, long-term mining and other services contracts of Ps. 5,794 million, and ICA’s share of backlog of non-consolidated subsidiaries and joint ventures of Ps. 15,550 million, out of a total non-consolidated backlog of Ps. 32,618 million.
  • Construction contributed 73% of second quarter 2015 revenues and 8% of Adjusted EBITDA.
  • Concessions contributed 13% of total revenues and 50% of Adjusted EBITDA.

Key Indicators2Q142Q15% Chg20142015% Chg
Concessions: Highway traffic, ADTV3,2603,47973,1913,3816
Airports: Passenger traffic (thousands)3,5784,171176,8147,97417

  • Highway traffic volumes (ADTV) rose 7% in 2Q15, principally as a result of growth on the Rio de los Remedios and Rio Verde-Ciudad Valles highways.
  • As of June 30, 2015, Concessions had 17 projects, including 10 highways, 4 water projects, 2 social infrastructure projects, and an energy project. Of these 11 are in operation, and six are under construction.
  • Airports contributed 14% of total revenues and 42% of Adjusted EBITDA.
  • Consolidated net loss was Ps. 357 million in 2Q15. Loss of the controlling interest was Ps. 0.92 per share or US$ 0.24 per ADS. The loss resulted principally from the cost of financing, including an exchange loss of Ps. 345 million.
  • ICA’s complete earnings report is available at ir.ica.mx

Conference Call Invitation

  • ICA’s 2Q15 earnings conference call will be held on Wednesday, July 29, at 11:30 am Eastern Time (10:30 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 81649157. 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 August 5, 2015 by calling toll-free (855) 859-2056 from the U.S. or +1 (404) 537-3406 internationally, again using conference ID 81649157.

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.

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

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