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

MEXICO CITY, Nov. 28, 2016 (GLOBE NEWSWIRE) -- Empresas ICA, S.A.B. de C.V. (BMV:ICA), announced today its unaudited results for the third quarter of 2016, which have been prepared in accordance with International Financial Reporting Standards. During the fourth quarter of 2015, the Company suspended the sale of its social infrastructure projects. Accordingly, these projects are no longer classified as available for sale. ICA is no longer consolidating San Martín, effective on the fourth quarter of 2015. In addition, ICA is no longer consolidating Facchina as of the third quarter of 2016 and has been presented as a discontinued operation. Financial statements from prior periods have been restated for comparability to reflect the sale suspension of social infrastructure projects and the deconsolidation of Facchina.

  • 3Q16 Airports and Concessions segments grew 29% and 2%, respectively versus 3Q15.
  • Construction Revenues decreased 71% in 3Q16 versus 3Q15 as a result of our foreign exit strategy, including Facchina, and the completion of Mexican projects, principally urban construction works.
  • Ps. 4,531 million net loss generated principally as a result of the effect of a Ps. 2,090 million foreign exchange conversion loss, and the recognition of equity value loss in Facchina, as a result of our foreign exit strategy.
  • Comprehensive backlog was Ps. 52,776 million at September 30th, 2016, of which Ps. 29,360 million corresponds to ICA’s participation in non-consolidated affiliates and joint ventures.
  • The company continues to focus on its operating restructuring process as well as preparing to initiate a negotiation with its debt-holders that will allow for the conclusion of its financial restructure.

Consolidated Financial Results

Consolidated Results 9 months
Ps. million3Q153Q16% Chg 2015 2016 % Chg
Revenues 7,739 5,060 (35) 23,932 14,581 (39)
Operating Income 1,179 881 (25) 4,018 2,538 (37)
Consolidated Net Loss (2,258) (4,531) (101) (3,323) (8,631) (160)
Net Loss of Controlling Interest (2,507) (4,970) (98) (3,920) (9,697) (147)
Adjusted EBITDA 1,713 1,224 (29) 5,502 3,689 (33)
Operating Margin 15.2% 17.4% 16.8% 17.4%
Adjusted EBITDA Margin 22.1% 24.2% 23.0% 25.3%
EPS (Ps.) (4.09) (8.13) -- (6.38) (15.87) --
EPADS (US$) (0.96) (1.66) -- (1.49) (3.24) --

Third quarter Consolidated Revenues decreased 35% to Ps. 5,060 million from Ps. 7,739 million in 3Q15. This reduction was principally the result of the slow-down in Construction Revenues caused by the foreign exit strategy and the completion of urban construction works. 3Q16 Construction Revenues are stabilized compared to 1Q16.

Third quarter Consolidated Adjusted EBITDA went to Ps. 1,224 million and 24.2% margin from Ps. 1,713 million and 22.1% margin in 3Q15. For the 9-month accumulated period, EBITDA margin increased to 25.3% in 2016 from 23.0% in 2015. This margin increase was the result of Concessions and Airport segments growth and a reduction in general expenses.

The Consolidated Net loss was Ps. 4,531 million in 3Q16. The foreign exchange conversion loss was Ps. 2,090 million in 3Q16 and Ps. 3,920 million for the 9-month accumulated period. Third quarter loss per share was Ps. 8.13 (US$ 1.66 per ADS).

Liquidity and Debt

Total consolidated debt decreased 4% to Ps. 65,005 million at September 30, 2016, as compared to Ps. 67,617 million at December 31, 2015. The decrease was principally the result of loan payments made in 1Q16 to Santander, Deutsche Bank, Barclays, and Value that were secured by the pledge of OMA B shares, payment of a working capital line to BBVA Bancomer, and scheduled amortizations of debt of operating projects from December 31, 2015 to September 30, 2016.

Total cash dropped 12% to Ps. 8,186 million at September 30, 2016 from Ps. 9,258 million at December 31, 2015. This total cash reduction was generated in the Concessions and Construction segments to boost production in major projects such as Palmillas – Apaseo El Grande toll road.

Ps. 4,574 million of total cash is restricted and Ps. 3,612 is unrestricted. Ps. 2,736 million of non-restricted cash is in OMA. On November 2016, as means of preparing the execution of new projects including the new NAICM terminal foundation slab project, ICA Promotora de Infraestructura (ICAPI) and Controladora de Operaciones de Infraestructura (CONOISA) disbursed the first tranch of the Fintech convertible loan.

Comprehensive backlog

To see a chart of the Comprehensive backlog please visit http://www.globenewswire.com/NewsRoom/AttachmentNg/7ca3ec4a-80f2-481d-88f1-08beb2d6c52f.

Comprehensive backlog, including ICA’s share of unconsolidated affiliates and joint ventures backlog, decreased 18% to Ps. 52,776 million at September 30, 2016 from 64,543 million at December 31, 2015, principally due to the foreign exit strategy, execution of construction work in Mexico and the deconsolidation of Facchina.

Civil Construction Backlog decreased 28% to Ps. 23,416 million at September 30, 2016 from Ps. 32,380 million at December 31, 2015, principally due to the foreign exit strategy and the completion of construction works in Mexico.

ICA’s share of unconsolidated affiliates and joint ventures backlog (mainly ICA Fluor) decreased 9% to 29,360 million at September 30, 2016 from Ps. 32,163 million at December 31, 2015 due to construction works execution during this period.

Reduction in Costs and Expenses

Technical-administrative workforce has been reduced by 51% to 1,773 as of September 30, 2016 from 3,619 as of December 31, 2015.

Financial and Operational Restructuring Activities

ICA is currently focused on the consolidation of its operational restructuring and ensuring the long term continuity of the business in order to be in the position to define its financial restructuring plan.

Subsequent Events

On November 3, 2016, the Board of Directors named Guadalupe Phillips as CEO.

On October 21st, the company was awarded a Ps. 7,555 million contract for the New Mexico City International Airport (NAICM) terminal’s foundation slab. The new contract will be reflected in the Consolidated Backlog at December 31, 2016.

On October 6, ADP announced its decision to sell its shareholding in OMA held through SETA, and ICA therefore consolidates 100% of SETA and continues to own directly and indirectly 14.3% of OMA.

This press release contains projections or other forward-looking statements related to ICA that reflect ICA’s current expectations or beliefs concerning future events. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include cancellations of significant construction projects included in backlog, material changes in the performance or terms of our concessions, additional costs incurred in projects under construction, failure to comply with covenants contained in our debt agreements, developments in legal proceedings, unanticipated increases in financing and other costs or the inability to obtain additional debt or equity financing on attractive terms, changes to our liquidity, economic and political conditions and government policies in Mexico or elsewhere, changes in capital markets in general that may affect policies or attitudes towards lending to Mexico or Mexican companies, changes in inflation rates, exchange rates, regulatory developments, customer demand, competition and tax and other laws affecting ICA’s businesses 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., 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 stock exchange. For more information, visit ir.ica.mx.

For more information, contact: Christianne Ibáñez christianne.ibanez@ica.mx relacion.inversionistas@ica.mx +(5255) 5272 9991 x 3607 Pablo García pablo.garcia@ica.mx Chief Financial Officer

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