Empresas ICA Announces Unaudited Third Quarter 2015 Results
October 28 2015 - 8:45PM
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 third quarter 2015,
which have been prepared in accordance with International Financial
Reporting Standards.
Summary for the third quarter of 2015
ICA’s third quarter results reflect the condition of the Mexican
economy, especially in the civil construction area, and the
increase in financial expense from depreciation of the peso against
the dollar. The Concessions, Airports, and ICA Fluor divisions
generated strong results, which were offset by the results of the
Construction division. The large exchange loss was principally
responsible for ICA’s net loss in the quarter. In 3Q15, total
revenues decreased 3% compared to 3Q14, with an Adjusted EBITDA
margin of 15.5%.
The performance of concessioned infrastructure was a significant
factor in the quarter. Auto traffic on operating highways grew 12%,
and air traffic volumes grew 16% compared to the same period of
2014.
At the same time, comprehensive backlog remained strong at Ps.
56,072 million as of September 30, 2015. Most additions came
from international operations and ICA Fluor.
ICA’s priority is the generation of cash from operations and
capital recycling transactions in order to reduce leverage and
preserve liquidity. In 3Q15, ICA generated resources totaling Ps.
1,915 million from the sale of real estate assets and 2.9% of OMA’s
shares. The total resources generated in the first nine months
reached Ps. 5,035 million, including the Ps. 3,120 million
generated in the first half of the year. These resources were used
principally to pay short-term and dollar-denominated debt. During
the final quarter of 2015, ICA expects to generate approximately
Ps. 2,000 million more through additional capital recycling
transactions, in accordance with the business strategy.
Consolidated Results |
|
|
|
9
months |
Ps. million |
3Q14 |
3Q15 |
%
Chg |
|
2014 |
|
|
2015 |
|
%
Chg |
Revenues |
|
8,752 |
|
|
8,486 |
|
|
(3 |
) |
|
25,795 |
|
|
25,669 |
|
|
-- |
|
Operating Income |
|
1,112 |
|
|
750 |
|
|
(33 |
) |
|
3,354 |
|
|
2,677 |
|
|
(20 |
) |
Consolidated Net Income |
|
(519 |
) |
|
(2,258 |
) |
|
-- |
|
|
(260 |
) |
|
(3,323 |
) |
|
-- |
|
Net Loss of Controlling Interest |
|
(769 |
) |
|
(2,507 |
) |
|
-- |
|
|
(942 |
) |
|
(3,920 |
) |
|
-- |
|
Adjusted EBITDA |
|
1,501 |
|
|
1,316 |
|
|
(12 |
) |
|
4,627 |
|
|
4,254 |
|
|
(8 |
) |
Operating Margin |
|
12.7 |
% |
|
8.8 |
% |
|
|
13.0 |
% |
|
10.4 |
% |
|
Adjusted EBITDA Margin |
|
17.2 |
% |
|
15.5 |
% |
|
|
17.9 |
% |
|
16.6 |
% |
|
EPS (Ps.) |
|
(1.25 |
) |
|
(4.09 |
) |
|
|
(1.55 |
) |
|
(6.38 |
) |
|
EPADS (US$) |
|
(0.38 |
) |
|
(0.96 |
) |
|
|
(0.47 |
) |
|
(1.49 |
) |
|
- Comprehensive backlog was Ps. 56,072 million, as compared to
Ps. 63,295 million as of December 31, 2014. This includes
construction contracts of Ps. 35,031 million, which include Ps.
5.766 million of new additions, long-term mining and other services
contracts of Ps. 6,289 million, and ICA’s share of backlog of
non-consolidated subsidiaries and joint ventures of Ps. 30,588
million, of which ICA’s proportionate share is 14,752 million.
Key
Indicators |
Dec-14 |
Sep-15 |
% Chg |
Comprehensive Backlog |
63,295 |
56,072 |
|
(11 |
) |
Construction: Backlog |
36,957 |
35,031 |
|
(5 |
) |
Contracted Mining Services |
5,108 |
6,289 |
|
23 |
|
ICA´s Proportionate share of
backlog of non-consolidated affiliates and JVs |
21,230 |
14,752 |
|
(31 |
) |
- Construction revenues decreased 3%, and construction Adjusted
EBITDA fell 99%. Civil construction in Mexico was affected by the
change in the mix of projects and delays in project execution.
Mexico construction revenues decreased 16%, which was offset by a
17% increase in international construction revenues.
- ICA Fluor revenues rose 121%, and ICA Fluor Adjusted EBITDA
increased 117%, with a margin of 9.5%, as the result of advances on
projects such as the Tula Refinery coker plant and the Los Ramones
II Sur gas pipeline.
- Concessions revenues rose 1%. Operating revenues (tolls and
availability payments) rose 15% as a result of traffic growth.
However, this was largely offset by a reduction in construction
revenues. The Adjusted EBITDA margin was 52.9%.
Non-consolidated concessions contributed Ps. 113 million in net
income to 3Q15 results.
Key
Indicators |
3Q14 |
3Q15 |
%
Chg |
2014 |
2015 |
%
Chg |
Concessions: Highway traffic,
ADTV |
3,354 |
3,758 |
12 |
3,230 |
3,505 |
9 |
Airports: Passenger traffic
(thousands) |
3,953 |
4,577 |
16 |
10,768 |
12,550 |
17 |
- Average Daily Traffic Volumes rose 12%, with all highways
showing growth, led by the Rio de los Remedios and Rio Verde-Ciudad
Valles highways.
- As of September 30, 2015, Concessions included 17 projects,
including ten highways, four water projects, two social
infrastructure projects, and an energy project. Of these 11 are in
operation, and six are under construction.
- Airports revenues increased 8%, with an Adjusted EBITDA margin
of 51.7%. Aeronautical revenues and non-aeronautical revenues rose
16% and 30%, respectively, which were partially offset by a 58%
decrease in construction revenues. Traffic volumes grew 16% in the
quarter; all 13 airports had traffic growth, led by the Monterrey
airport.
- ICA’s net debt reached Ps. 51,147 million as of September 30,
an increase of Ps. 4,394 million from December 31, 2014. The
increase principally resulted from the effect of the depreciation
of the peso against the dollar (+ Ps. 4,591 million), and was
partially offset by debt payments of Ps. 2,767 million, using the
resources from capital recycling transactions and scheduled
amortizations. ICA reduced short-term debt by Ps. 1,309 million, or
20%, since December 31, 2014 and paid US$ 130 million in dollar
debt.
- Consolidated net loss was Ps. 2,258 million in 3Q15. Loss of
the controlling interest was Ps. 4.09 per share or US$ 0.96 per
ADS. The loss resulted principally from the slowdown in the
construction industry in Mexico and the integral cost of financing,
including an exchange loss of Ps. 2,991 million.
Conference Call Invitation
- ICA’s 3Q15 earnings conference call will be held on Thursday,
October 29, at 12:00 pm 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 The conference ID is 57601401.
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 November 5, 2015 by calling
toll-free (855) 859-2056 from the U.S. or
+1 (404) 537-3406 internationally, again using
conference ID 57601401.
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
http://ir.ica.mx.
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