MEXICO CITY, March 30, 2016 (GLOBE NEWSWIRE) -- Empresas ICA, S.A.B. de C.V. (BMV:ICA) (NYSE:ICA), announced today its unaudited results for the fourth quarter and full year 2015, which have been prepared in accordance with International Financial Reporting Standards. During the fourth quarter, the Company suspended the sale of its social infrastructure projects.  Accordingly, these projects are no longer classified as available for sale, and financial statements from prior periods have been restated for comparability. In addition, ICA is no longer consolidating San Martín, effective October 1, 2015, as a result of the reduction in ICA's shareholding to 31.2% from 51%.

• Total revenues decreased 53% in the fourth quarter, compared to the same period of 2014
• Results for 4Q15 were affected by a 66% decrease in civil construction revenues, compared to the same period of 2014
• Comprehensive backlog increased Ps. 1,578 million compared to end-2014 levels, principally because of new ICA Fluor contracts
• Operational and financial restructuring process began
• Payment of parent company financial debt suspended
• Headcount reduced by 51% to date from December 2014 levels, as part of restructuring process
• Allowances, asset impairments, and provisions totaled Ps. 11,389 million for the full year
  
  

Financial and Operating Results

Fourth quarter consolidated net revenues decreased 53% to Ps. 5,504 million from Ps. 11,647 million in 4Q14. This reduction was principally the result of a lower volumes of construction work on various projects, the completion of international projects that contributed to results in 4Q14, and the deconsolidation of San Martín effective 4Q15. Revenues of the Construction segment decreased to Ps. 2,824 million in 4Q15 from Ps. 8,427 million in in 4Q14.

The consolidated net loss was Ps. 10,510 million in 4Q15 and Ps. 13,833 million in the full year 2015. The net loss was principally the result of the reduction in Construction segment revenues, allowances for doubtful accounts, asset impairment losses, and the depreciation of the peso against the U.S. dollar. Loss per share was Ps. 17.33 (US$ 4.00 per ADS) in 4Q15 and Ps. 23.65 (US$ 5.46 per ADS) in 2015.

Allowances for doubtful accounts and asset impairment losses

ICA increased its allowance for doubtful accounts, recognized asset impairments, and made restructuring provisions totaling Ps. 11,329 million in 2015. Of the total, Ps. 5,381 million were increased allowances for doubtful accounts related to the construction contracts for the Barranca Larga -Ventanilla tollroad, the TECII terminal in the port of Lázaro Cárdenas, and the Rio de los Remedios tollroad, as well as real estate inventories. In addition, there were Ps. 5,053 million in asset impairment losses, principally for the investments in the Barranca Larga -Ventanilla and the Faros property in Panama. The impairment charges and write-offs during the quarter and full year 2015 represent management's best estimates and necessarily are based on estimates and projections, which are subject to change based on future developments. Accordingly, we may be required to adjust the amount of impairment charges and write-offs in the future.

The allowances and impairment losses affected the balance sheet as well as the income statement. In addition, the balance sheet reflects the reclassification to short-term of certain debt obligations in the Construction and Concessions segments and the three corporate bonds that became due once there was a non-compliance on payment obligations.  As a result, current liabilities increased to Ps. 57,618 million as of December 31, 2015, compared to Ps. 27,742 million as of December 31, 2014.

Liquidity and Debt

Total consolidated debt increased 7% to Ps. 67,617 million as of December 31, 2015, as compared to December 31, 2014.  The increase was principally the result of the depreciation of the peso against the dollar. Foreign currency denominated debt was 45% of the total.

Total cash was Ps. 9,258 million as of December 31, 2015.  Of this, Ps. 4,442 million was restricted cash, and Ps. 4,816 million was unrestricted, of which Ps. 2,697 million was unrestricted cash held at OMA.

Comprehensive backlog

Comprehensive backlog, including ICA's share of backlog reached Ps. 64,873 million as of December 31, 2015, an increase of Ps. 1,578 million compared to December 31, 2014.  The increase was the result of increases in backlog of non-consolidated affiliates and joint ventures (principally at ICA Fluor), which grew 49% to Ps. 65,366 million; ICA's proportional share was Ps. 32,163 million, as of December 31, 2015.

A graph accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/77b42009-79e3-4959-a449-07e2ced63ab2

Restructuring Activities

During the fourth quarter of 2015, ICA entered into a process of operational restructuring, in order to reduce costs and expenses.  Through December 31, 2015, technical and administrative headcount decreased 22%, and costs decreased 15% from the levels as of December 2014.  As of the date of this report, technical and administrative headcount has decreased 51% and costs 46%. In addition, ICA suspended payments related to its non-guaranteed financial debt, including the three corporate bonds maturing in 2017, 2021, and 2024; the Company is currently focusing its efforts on the definition of a restructuring plan.

ICA is designing the financial restructuring plan together with its advisors, Rothschild México and FTI Consulting. These initiatives are led by ICA's new management team headed by Chief Executive Officer Luis Zárate Rocha and Chief Restructuring Officer Guadalupe Phillips Margáin.

Subsequent events

Payment of secured debt and sale of OMA shares.  The suspension of payment by ICA of interest on the three corporate bonds triggered cross-default clauses on credits from Santander, Deutsche Bank, and Barclays that were secured with Series B shares of OMA.  As a result, Ps. 4,704 million of debt was paid in February and March 2016. In addition, a Ps. 600 million loan from Value, also secured with OMA B shares, was paid in March 2016 upon sale of the pledged shares.

As a result, as of the date of this report, ICA's total debt is as shown in the following table:

ICA's shareholding in OMA, direct and indirect, was reduced to 14.32% as of the date of this report.  ICA exercises control of OMA through its holding of 74.5% of SETA, the strategic partner of OMA, which holds all OMA's Series BB shares.

Palmillas - Apaseo El Grande financing. ICA and CKD EXI signed an agreement by means of which the EXICK trust granted a Ps. 750 million convertible loan to provide the resources necessary for the completion of the Palmillas - Apaseo El Grande tollroad project.

ICA's complete earnings report is available at http://ri.ica.mx.

Conference Call

ICA's 4Q15 earnings conference call will be held on Wednesday, March 30, at 5:00 pm Eastern Time (3:00 pm 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 81976558. 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 April 13, 2016 by calling toll-free (855) 859-2056 from the U.S. or +1 (404) 537-3406 internationally, again using conference ID 81976558.

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 ir.ica.mx.

For more information, contact:

Gabriela Orozco
gabriela.orozco@ica.mx

Christianne Ibánez
christianne.ibanez@ica.mx

relacion.inversionistas@ica.mx
+(5255) 5272 9991 x 3012

Pablo García
pablo.garcia@ica.mx
Chief Financial Officer

In the United States:
Daniel Wilson, Zemi Communications
+(1212) 689 9560
dbmwilson@zemi.com