Empresas ICA Announces Unaudited First Quarter 2013 Results

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MEXICO CITY, April 26, 2013 (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 of 2013.

The Company's results reflect the first-time adoption of five accounting standards related principally to issues of control. The most important of these, IFRS 11 "Joint Arrangements," eliminates proportional consolidation. Results for 1Q12 and the full year 2012 have been restated for comparative purposes. Additional information is provided in the Notes.

As a result of the adoption of IFRS 11 and the strategic housing transaction agreed to with Javer last year, ICA will no longer report separate Industrial Construction and Housing Development segments. ICA will provide consolidated operating results for four segments: Construction, Concessions, Airports, and Corporate and Other. Results of Housing Development will be reported in the segment Corporate and Other. The results of the former Industrial Construction segment are included in Construction using the equity method. The accounting changes do not affect ICA's operations, cash flow generation, or business arrangements. Supplemental information on the performance of affiliates is provided in the Annex to this report.

Summary for the First Quarter and 2013 Outlook

The results for the first quarter of 2013 reflect the transition between the completion of existing large scale projects and the start up of new ones, which reduced Construction revenues and margins. This was partially offset by the strong performance of Concessions, based on the start of operations of four consolidated concessions in late 2012, and continued strong performance from Airports.

ICA expects that full year 2013 revenues will rebound and increase an estimated 9% to 12%, compared to 2012. Construction revenue is expected to recover in the second half of the year, while Concessions and Airports are expected to continue their growth dynamic. ICA also expects to generate an Adjusted EBITDA margin approximately equivalent to 2012, and be in the range of 13% to 16%.

This outlook is based on the solid level of Construction backlog and the expected start of construction for new projects and the start of operations of concessions under construction. This outlook is based on ICA's internal estimates and assumptions regarding the finalization of concession agreements, completing financing for projects that require financing, timing of the delivery of rights of way and required permits for projects, timing of the Mexican government's National Development Plan, and general economic and financial conditions in Mexico and key markets in Latin America, among others.

Consolidated Results
Ps. million 1Q12 1Q13 % Chg
Revenues 9,507 6,909 (27)
Operating Income 817 595 (27)
Consolidated Net Income 986 263 (73)
Net Income of Controlling Interest 821 164 (80)
Adjusted EBITDA 1,406 1,110 (21)
Operating Margin 8.6% 8.6%
Adjusted EBITDA Margin 14.8% 16.1%
EPS (Ps.) 1.36 0.27 (80)
EPADS (US$) 0.42 0.09 (79)

  • Consolidated 1Q13 revenue was Ps. 6,909 million, a decrease of 27% from 1Q12. Construction revenue decreased 41% as a result of the transition to new large projects that are just getting underway, while Concessions revenues and Airports revenues grew 81% and 12%, respectively.
  • The Adjusted EBITDA margin reached 16.1%, as a result of the start of operation of several concessioned projects in 2012 and the relatively larger share of total revenues generated by the Concessions and Airports segments in the quarter. To the extent that Construction rebounds in the remainder of 2013, margins are expected to adjust accordingly.
  • Construction backlog as of March 31, 2013 was Ps. 30,346 million, 7% below the level of Ps. 32,734 million as of December 31, 2012.
  • ICA also has long-term mining and other service contracts for Ps. 7,106 million (a decrease of 13% compared to Ps. 8,166 million as of 4Q12), principally related to our San Martín Contratistas Generales subsidiary in Peru. In addition, non-consolidated affiliates have Ps. 10,396 million in construction backlog.
  • Consolidated net income was Ps. 263 million, and net income of the controlling interest was Ps. 164 million.

Key Indicators Mar-12 Mar-13 % Chg
Construction: Backlog 32,734 * 30,346 (7)
Contracted Mining Services 8,166 * 7,106 (13)
Concessions: Highway traffic, ADTV 17,974 26,711 49
Airports: Passenger traffic (thousands) 2,896 3,029 5
* As of December 31, 2012

  • Construction contributed 67% of consolidated revenue and 5% of Adjusted EBITDA in 1Q13.
  • Concessions contributed 21% of consolidated revenue and 64% of Adjusted EBITDA in 1Q13.
  • As of March 31, 2012, ICA's Concessions segment was participating in 18 projects, including ten highways, five water projects, two social infrastructure projects, and one port. Of these, nine were in full operation, two in partial operation, and seven under construction.
  • Airports contributed 11% of consolidated revenue and 31% of Adjusted EBITDA in 1Q13.

ICA's full earnings report for 1Q13 may be found on ICA's investor relations page, http://www.ica.com.mx/ir

Conference Call Invitation

ICA's conference call will be held on Monday, April 29, at 12:00 pm Eastern Time (11:00 am Mexico City time). To participate, please dial toll-free 855-370-4217 from the U.S., 01-800-926-9147 from Mexico, +1-559-549-9841 internationally. The conference ID is 52615124. The conference call will be Webcast live through streaming audio and available on ICA's website at http://www.ica.com.mx/ir

A replay will be available until May 13, 2013 by calling toll-free 855-859-2056 from the U.S. or +1-404-537-3406 internationally, again using conference ID 52615124.

This report may contain 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, lCA is listed on the Mexican and New York Stock exchanges. For more information, visit www.ica.com.mx/ir

CONTACT: Iga Wolska iga.wolska@ica.mx Elena Garcia elena.gracia@ica.mx relacion.inversionistas@ica.mx (5255) 5272 9991 ext.3696 Gabriel de la Concha, CIO gabriel.delaconcha@ica.mx Victor Bravo, CFO victor.bravo@ica.mx In the United States: Daniel Wilson, Zemi Communications (1212) 689 9560 dbmwilson@zemi.com

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