Empresas ICA Announces Unaudited Second Quarter 2013 Results

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

MEXICO CITY, July 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 second quarter of 2013.

Summary for the Second Quarter

Significant revenue growth and margin contribution from the Concessions and Airports businesses underpinned ICA's results in the second quarter of 2013. These reflect the start of operation late last year of four new concessions and the continued growth of air passenger traffic. In addition, Construction revenue and margins rebounded significantly from first quarter levels, as several of ICA's new projects moved into the construction phase. At the same time, new contracts and contract additions increased construction backlog.

ICA announced two strategic transactions during the quarter, as part of our business model. The sale of the investment in the RCO tollroads and the sale of a portion of our shares in OMA generate more than Ps. 7,800 million in cash for ICA. The RCO transaction generated a net gain of Ps. 498 million in 2Q13 results. The OMA transaction will be recognized in the third quarter. The resources from these transactions increase ICA's financial flexibility, allowing us to reduce short-term debt and position us to take advantage of new infrastructure opportunities in Mexico and abroad.

The announcement of Mexico's Transportation and Communications Investment Program in mid-July as part of the National Infrastructure Plan provides greater visibility on the opportunities for new contracts. The increase in backlog also corroborates ICA's previously announced outlook for the year for both revenues and Adjusted EBITDA.

Consolidated Results 6 months
Ps. million 2Q12 2Q13 % Chg 2012 2013 % Chg
Revenues 9,460 8,208 (13) 18,968 15,117 (20)
Operating Income 821 1,919 134 1,638 2,514 53
Consolidated Net Income (Loss) 199 (345) (273) 1,185 (82) (107)
Net Income (Loss) of Controlling Interest 170 (501) (394) 991 (337) (134)
Adjusted EBITDA 1,480 2,234 51 2,886 3,344 16
Operating Margin 8.7% 23.4% 8.6% 16.6%
Adjusted EBITDA Margin 15.6% 27.2% 15.2% 22.1%
EPS (Ps.) 0.28 (0.82) (393) 1.64 (0.55) (134)
EPS ADS (US$) 0.08 (0.25) (400) 0.49 (0.17) (135)

  • Consolidated 2Q13 revenue was Ps. 8,208 million, a decrease of 13% from Ps. 9,460 million in 2Q12. Construction revenue decreased 30% as a result of the transition to new projects that are just getting underway, while Concessions and Airports revenues grew 109% and 15%, respectively.
  • The Adjusted EBITDA margin reached 27.2%, as a result of the start of operation of several concessioned projects in the Concessions segment, the gain on sale of RCO, and increased contribution from the Airports segment in the quarter.

Key Indicators Dec-12 Jun-13 % Chg
Construction: Backlog 32,734 37,087 13
Contracted Mining Services 8,166 6,221 (24)

  • Construction backlog as of June 30, 2013 was Ps. 37,087 million, 13% above the level as of December 31, 2012. ICA also has long-term mining and other service contracts for Ps. 6,221 million. In addition, non-consolidated affiliates and joint ventures have Ps. 9,630 million in construction backlog.
  • Comprehensive financing cost was Ps. 2,461 million in 2Q13 as a result of an exchange loss of Ps. 1,254 million as a result of the depreciation of the peso, a higher level of debt to finance projects, and the fact that interest expenses for concessioned projects that enter into operation are no longer capitalized.
  • Consolidated net loss was Ps. 345 million, and net loss of the controlling interest was Ps. 501 million. The net losses were principally the result of the exchange loss mentioned above.

Key Indicators 2Q12 2Q13 % Chg 2012 2013 % Chg
Concessions: Highway traffic, ADTV 17,866 30,840 73 17,889 27,564 54
Airports: Passenger traffic (thousands) 3,038 3,208 6 5,934 6,238 5

  • Construction contributed 66% of consolidated revenue and 17% of Adjusted EBITDA in 2Q13.
  • Concessions contributed 25% of consolidated revenue and 65% of Adjusted EBITDA in 2Q13.
  • As of June 30, 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, eleven were in full operation, and seven under construction.
  • Airports contributed 10% of consolidated revenue and 17% of Adjusted EBITDA in 2Q13.

The complete earnings report is available at http://www.ica.com.mx/ir

Conference Call Invitation

ICA's conference call will be held on Monday, July 29, at 10:00 am Eastern Time (09:00 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 18615628. 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 August 5, 2013 by calling toll-free (855) 859-2056 from the U.S. or +1 (404) 537-3406 internationally, again using conference ID 18615628.

This press release 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: For more information 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.