Empresas ICA Announces Unaudited Fourth Quarter and Full Year 2014 Results
February 27 2015 - 9:25AM
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 fourth quarter and
full year 2014, which have been prepared in accordance with
International Financial Reporting Standards.
Summary for the fourth quarter and full year
2014
Fourth quarter 2014 revenues grew substantially, with increases
in all segments. Adjusted EBITDA rose 19% to Ps. 1,510 million as
compared to 4Q13.
During the full year 2014, ICA delivered sustained growth in
revenues, margins, and backlog, with revenue growth in excess of
guidance. Adjusted EBITDA reached a record Ps. 6,138 million, with
an Adjusted EBITDA margin of 16.7%. The Construction segment
delivered 24% growth in revenue and a 31% increase in Adjusted
EBITDA, as a result of the favorable performance of works
contracted in Mexico and the consolidation effective 2Q14 of
Facchina Construction Group (FCG) in the U.S. Consolidated backlog
rose 16% to Ps. 35,545 million. Concessions segment revenues rose
21% and Adjusted EBITDA increased 11%, as a result of the high
rates of vehicle traffic growth. The Airports segment continues to
deliver strong, stable results reflecting the double-digit
increases in passenger traffic.
For the full year and specifically in 4Q14, ICA's comprehensive
financing cost was affected by 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.
Consolidated Results |
|
|
|
12 months |
Ps. million |
4Q13 |
4Q14 |
% Chg |
2013 |
2014 |
% Chg |
Revenues |
7,729 |
10,962 |
42 |
29,556 |
36,757 |
24 |
Operating Income |
814 |
1,021 |
25 |
3,133 |
4,375 |
40 |
Consolidated Net Income (Loss) |
1,038 |
(1,826) |
-- |
1,422 |
(2,086) |
-- |
Net Income (Loss) of Controlling
Interest |
520 |
(2,082) |
-- |
424 |
(3,024) |
-- |
Adjusted EBITDA |
1,264 |
1,510 |
19 |
4,735 |
6,138 |
30 |
Operating Margin |
10.5% |
9.3% |
|
10.6% |
11.9% |
|
Adjusted EBITDA Margin |
16.4% |
13.8% |
|
16.0% |
16.7% |
|
EPS (Ps.) |
0.85 |
(3.47) |
-- |
0.70 |
(4.96) |
-- |
EPS ADS (US$) |
0.26 |
(0.94) |
-- |
0.21 |
(1.35) |
-- |
- Construction backlog grew 16% to Ps. 35,545 million, as
compared to December 31, 2013. In addition, long-term
contracts for mining and other services were Ps. 5,108
million.
- In addition, backlog of non-consolidated subsidiaries and joint
ventures rose 297% to Ps. 43,921 million, of which ICA's
proportionate share was Ps. 21,230 million.
|
|
|
|
Key Indicators |
Dec-13 |
Dec-14 |
% Chg |
Construction: Backlog |
30,658 |
35,545 |
16 |
Contracted Mining Services |
5,700 |
5,108 |
(10) |
Non Consolidated
and Affiliates and Joint Ventures |
11,050 |
43,921 |
297 |
- The Construction segment contributed 80% of consolidated
revenues and 36% of Adjusted EBITDA in 4Q14.
- Concessions contributed 11% of revenues and 39% of Adjusted
EBITDA in 4Q14.
- The traffic volumes for the concessioned highways in 4Q14 rose
16% as a result of traffic growth in most of the operating
projects.
|
|
|
|
|
|
|
Key Indicators |
4Q13 |
4Q14 |
% Chg |
2013 |
2014 |
% Chg |
Concessions: Highway traffic, ADTV |
38,356 |
44,550 |
16 |
33,390 |
42,634 |
28 |
Airports: Passenger
traffic (thousands) |
3,435 |
3,928 |
14 |
13,292 |
14,695 |
11 |
- As of December 31, 2014, Concessions participated in 17
projects: ten highways, four water projects, two social
infrastructure projects and one port. Of these, ten were
operational, one in the testing phase, and six were under
construction.
- Airports contributed 9% of revenues and 25% of Adjusted EBITDA
in 4Q14.
- Consolidated net loss was Ps. 1,826 million in 4Q14, and the
loss of the controlling interest was Ps. 2,086 million, equivalent
to Ps. 3.47 per share or US$ 0.94 per ADS. The loss resulted
principally from the exchange loss of Ps. 2,845 million included in
comprehensive financing cost.
2015 Outlook
- ICA expects that revenues will increase by 10% to 12% percent
in 2015, with an Adjusted EBITDA margin of 14% to 16%, excluding
one-time gains or losses. This outlook is supported by the
Company's substantial backlog of projects and international
businesses.
- ICA also expects to realize total gross proceeds from asset
monetizations of at least Ps. 5,000 million in 2015. Most
proceeds are expected to be used for debt reduction.
- This outlook is based on current exchange rates and existing
timetables for project execution and the pipeline of potential
projects in Mexico and abroad. Numerous factors, including changes
in the overall economic environment, delays in project execution,
delays in receiving governmental approvals for asset sales, or
inability to contract required financing, among others, could
affect this outlook. ICA undertakes no obligation to revise or
update this outlook based on changed conditions.
Conference Call Invitation
- ICA's conference call will be held on Monday, March 2, at 11:00
am Eastern Time (10:00 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 83680644. 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 March 9, 2015 by calling
toll-free (855) 859-2056 from the U.S. or
+1 (404) 537-3406 internationally, again using
conference ID 83680644.
- The complete earnings report is available at
http://ir.ica.mx.
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
Gabriel de la Concha
gabriel.delaconcha@ica.mx
Corporate Finance Director and Treasurer
Victor Bravo
victor.bravo@ica.mx
Chief Financial Officer
In the US: Daniel Wilson
+(1212) 689 9560
dbmwilson@zemi.com