Empresas ICA, S.A.B. de C.V. (BMV:ICA) (NYSE:ICA)
announced today its unaudited results for the first quarter of
2016, which have been prepared in accordance with International
Financial Reporting Standards. During the fourth quarter of 2015,
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%.
Financial and Operating
Results
First quarter consolidated net revenues
decreased 36% to Ps. 6,108 million from Ps. 9,501 million in 1Q15.
This reduction was principally the result of lower volumes of
construction work on various projects and the deconsolidation of
San Martín effective 4Q15. Revenues of the Construction segment
decreased to Ps. 3,062 million in 1Q16 from Ps. 6,053 million in
1Q15.
The consolidated net loss was Ps. 1,101 million
in 1Q16. The net loss was principally the result of the reduction
in Construction segment revenues and comprehensive financing cost.
Loss per share was Ps. 2.23 (US$ 0.51 per ADS).
The gain on sale of OMA Series B shares was
recorded as a direct credit to equity, and did not pass through the
income statement. This gain offset the consolidated net loss,
and stockholders’ equity increased by Ps. 3,519 million compared to
December 31, 2015.
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Consolidated
Results |
|
|
|
|
Ps. million |
1Q15 |
1Q16 |
% Chg |
|
Revenues |
|
9,501 |
|
|
6,108 |
|
|
(36 |
) |
|
Operating Income |
|
1,570 |
|
|
978 |
|
|
(38 |
) |
|
Consolidated Net
(Loss) |
|
(708 |
) |
|
(1,101 |
) |
|
(55 |
) |
|
Net Loss of Controlling
Interest |
|
(846 |
) |
|
(1,370 |
) |
|
(62 |
) |
|
Adjusted
EBITDA |
|
2,091 |
|
|
1,379 |
|
|
(34 |
) |
|
Operating Margin |
|
16.5 |
% |
|
16.0 |
% |
|
|
Adjusted
EBITDA Margin |
|
22.0 |
% |
|
22.6 |
% |
|
|
EPS (Ps.) |
|
(1.38 |
) |
|
(2.23 |
) |
-- |
|
EPADS
(US$) |
|
(0.36 |
) |
|
(0.51 |
) |
-- |
|
|
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Liquidity and Debt
Total consolidated debt decreased 8% to Ps.
62,498 million as of March 31, 2016, as compared to December 31,
2015. The decrease was principally the result of loan
payments to Santander, Deutsche Bank, Barclays, and Value that were
secured by the pledge of OMA B shares, payment of a working capital
line to BBVA Bancomer, and scheduled amortizations of debt of
operating projects.
Total cash was Ps. 8,298 million as of March 31,
2016.
Comprehensive backlog
Comprehensive backlog, including ICA’s share of
backlog of unconsolidated affiliates and joint ventures, reached
Ps. 60,757 million as of March 31, 2016, a decrease of Ps. 3,786
million compared to December 31, 2015. Consolidated backlog
was Ps. 31,129 million, down Ps. 1,251 million from year-end. Total
backlog of non-consolidated affiliates and joint ventures
(principally at ICA Fluor) decreased Ps. 3,112 million to Ps.
62,254 million.
Reduction in Costs and
Expenses
During the fourth quarter of 2015, ICA entered
into a process of operational restructuring, in order to reduce
costs and expenses. Through April 30, 2016, the workforce had
decreased 35% from the levels as of December 2015, and 51% as
compared to December 2014. Independently of other efforts to reduce
costs, payroll costs have decreased by 35% and 43%, compared to the
levels at the end of 2015 and 2014, respectively.
Restructuring Activities
ICA is currently focused on the definition of a
financial restructuring plan. We continue to work with our
advisors, Rothschild México and FTI Consulting, to complete this
plan.
ICA’s full earnings report is available on the
investor relations page of www.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. Forward-looking statements
involve inherent risks and uncertainties. We caution you that a
number of important factors could cause actual results to differ
materially from the plans, objectives, expectations, estimates and
intentions expressed in such forward-looking statements. These
factors include cancellations of significant construction projects
included in backlog, material changes in the performance or terms
of our concessions, additional costs incurred in projects under
construction, failure to comply with covenants contained in our
debt agreements, developments in legal proceedings, unanticipated
increases in financing and other costs or the inability to obtain
additional debt or equity financing on attractive terms, changes to
our liquidity, economic and political conditions and government
policies in Mexico or elsewhere, changes in capital markets in
general that may affect policies or attitudes towards lending to
Mexico or Mexican companies, changes in inflation rates, exchange
rates, regulatory developments, customer demand, competition and
tax and other laws affecting ICA’s businesses 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. 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:
Christianne Ibánez
christianne.ibanez@ica.mx
relacion.inversionistas@ica.mx
+(5255) 5272 9991 x 3607
Pablo García
pablo.garcia@ica.mx
Chief Financial Officer
In the United States:
Daniel Wilson, Zemi Communications
+(1212) 689 9560
dbmwilson@zemi.com