FORM
6-K
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Report
of Foreign Private Issuer
Pursuant
to Rule 13a-16 or 15d-16
of
the Securities Exchange Act of 1934
For
the month of June, 2016
Commission File Number 1-11080
THE
ICA CORPORATION
(Translation of registrant's name into English)
Blvd.
Manuel Avila Camacho 36
Col. Lomas de Chapultepec
Del. Miguel Hidalgo
11000 Mexico City
Mexico
(Address of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form
20-F.....x.... Form 40-F.........
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____
Indicate
by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes
..... No...x...
If
"Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________
Summary of ICA Business
Plan
June 17, 2016, Mexico
City — Empresas ICA, S.A.B. de C.V. (BMV and NYSE: ICA)
made a preliminary summary of its business plan, attached to
this press release, publicly available to creditors and investors. This preliminary business plan does not take into account the
signing of the US$215 million secured convertible loan announced today, and as a result should not be relied upon by any party
in performing a valuation of ICA’s assets. In particular, these projections do not account for the dilution of ICA’s
interest in certain concession and construction subsidiaries and entities that would result from the exercise of the conversion
feature or the payment-in-kind option under the convertible loan.
ICA encourages a more
comprehensive discussion of its future plans, including any future restructuring of its existing debt, with all of its stakeholders.
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
www.ica.mx/ir
.
For more information, please contact:
Christianne Ibáñez
christianne.ibanez@ica.mx
r
elacion.inversionistas@ica.mx
+(5255) 5272 9991 x 3607
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Pablo García
pablo.garcia@ica.mx
Chief Financial Officer
In the US:
Daniel Wilson, Zemi Communications
+(1212) 689 9560
dbmwilson@zemi.com
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Exhibit 1
Summary of Empresas ICA, S.A.B. de C.V. (“ICA”)’s
Business Plan
Basis of Preparation
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The business plan was developed to be consistent
with the expected ongoing businesses of the Construction and Concessions segments, while most of the other parts of the business
are treated as long-term investments (equity method).
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Note: The reason that the threshold for consolidating
concessions increases to 52% in the business plan (from 50%) is to reflect the fact that the OVT concessions (which ICA own 51%)
are treated as equity investments in the business plan (vs. being consolidated in the Company's financial statements). Also note
that Facchina and ICA Fluor are incorporated in the business plan as long-term investments
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Accordingly, the Business Plan has been simplified,
and does not follow the IFRS consolidating accounting policies that the Company follows for its financial statements. However,
this method presents a clearer picture of these concessions’ profits and cash generation that would be available for debt
service.
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Business Plan Principles
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The Company has adopted the following principles
in developing the Business Plan herein:
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International and Housing /
Real Estate Divisions
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The international Division along with the Housing / Real
Estate Division are being wound down.
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In addition, the Company will be exiting its International
Concession projects that have not yet started.
Concessions
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The expansion of the Concession division will be limited
to completing the Palmillas project in the near future. Post restructuring, ICA will assess investing in new concessions, although
no such investments are reflected in the Business Plan.
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The Company will return or have the Government invest in
the Barranca Larga concession as it is not viable to complete on a stand alone basis.
Construction
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Going forward, the Construction Business will be limited
to the Mexican operations.
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The strategy going forward will be to get back to the basics:
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a)
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Minimize the amount of work that is performed out
of scope and without a contractual change order.
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b)
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Profitability will be the main driver.
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Airports
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Continue to own the control shares in OMA.
High Level Summary of
Projected Income Statement
Disclaimer & Limitation
This summary contains information on the Company. Statements that
are not historical facts, including statements about the Company’s strategy, plans, objectives, assumptions, prospects, beliefs
and expectations, are forward-looking statements. Forward-looking statements are not guarantees of future performance and involve
inherent risks and uncertainties. These forward-looking statements are based on current plans, estimates and projections, and therefore
the reader should not place undue reliance on them. Actual results could differ materially and adversely from those expressed or
implied by the forward-looking statements as a result of factors that may be beyond the Company’s control.
Summary of Empresas ICA, S.A.B. de C.V. (“ICA”)’s
Business Plan
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Presented below is ICA’s
projected income statement from 2016 to 2020 in MXN million:
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Projected Revenues
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The following table summarize projected revenue
by business segment:
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Approximately 57.0% of the 5-year cumulative revenue
is expected to come from the Domestic Construction segment, with the balance coming from the concessions segment.
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Revenue is projected to decrease in nominal terms
at a 6.0% 4-year CAGR from 2016 – 2020.
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High Level Summary of
Projected Income Statement
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For 2016, approximately 97.3% of revenues from the Construction segment are projected to come from existing projects.
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Disclaimer & Limitation
This summary contains information on the Company. Statements that
are not historical facts, including statements about the Company’s strategy, plans, objectives, assumptions, prospects, beliefs
and expectations, are forward-looking statements. Forward-looking statements are not guarantees of future performance and involve
inherent risks and uncertainties. These forward-looking statements are based on current plans, estimates and projections, and therefore
the reader should not place undue reliance on them. Actual results could differ materially and adversely from those expressed or
implied by the forward-looking statements as a result of factors that may be beyond the Company’s control.
Summary of Empresas ICA, S.A.B. de C.V. (“ICA”)’s
Business Plan
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Revenue from concessions only include the revenues of the Autopista Río de Los Remedios Ecatepec (ANESA), Sarre and
Papagos Penitentiaries and the Autopista Apaseo – Palmillas (Palmillas) concessions.
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Concession revenues are expected to decrease after 2016 as a result of the completion of the construction of the Palmillas
toll highway.
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From 2018 to 2020 revenue from concessions is projected to come exclusively from the operation of the concessions and it is
expected to grow at a 4.9% 3-year CAGR during 2017 - 2020.
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Gross Margin
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Gross margin is projected to be 27.7% per year on average. The Concession segment has higher margins which brings up the overall
average margins – compared to Domestic Construction which has much lower gross margins.
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Gross margin is projected to increase after 2016 as a result of the completion of the Palmillas highway, since the margin of
construction is significantly lower than the margin of a toll road concession in operations.
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The Concessions segment is expected to increase its margin mostly as result of the projected price increase of the ANESA toll
and the projected growth of ANESA and Palmillas’ traffic. Palmillas is projected to start operations in late 2016.
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EBITDA
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Projected EBITDA can be broken down by segment as follows:
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For the projected period, for the most part, EBITDA is expected to grow in line with revenue and gross margin.
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EBITDA margin is projected to remain between 21.5% and 26.8% after 2016.
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For 2016, EBITDA margin is projected to be lower than in 2017 – 2020 because it includes the completion of the construction
of the Palmillas highway, and more significantly, one time severance payments to right size the business.
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Disclaimer & Limitation
This summary contains information on the Company. Statements that
are not historical facts, including statements about the Company’s strategy, plans, objectives, assumptions, prospects, beliefs
and expectations, are forward-looking statements. Forward-looking statements are not guarantees of future performance and involve
inherent risks and uncertainties. These forward-looking statements are based on current plans, estimates and projections, and therefore
the reader should not place undue reliance on them. Actual results could differ materially and adversely from those expressed or
implied by the forward-looking statements as a result of factors that may be beyond the Company’s control.
Summary of Empresas ICA, S.A.B. de C.V. (“ICA”)’s
Business Plan
High Level Summary of Projected
Income Statement
Other Profit and Losses Projected Items
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The interest included in the income statement relates to the accrued interest related to the entities whose operations are
consolidated. These include the interest of the Construction, Concessions and the International segments.
Note that for the
most part the business plan does not accrue interest on the Corporate debt.
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For the projected period, the Company is expected to have a total foreign exchange loss mostly related the increase in US denominated
debt balance as result of the projected devaluation of the Mexican Peso against the USD.
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Projected dividends include dividends from a partly owned water treatment plant and partly owned Construction company, various
projects in Latin America, ICA’s 51% interest in OVT Concessions, minority interests in other Concessions and OMA.
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Other income relates mostly to management fees from partially owned subsidiaries.
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Disclaimer & Limitation
This summary contains information on the Company. Statements that
are not historical facts, including statements about the Company’s strategy, plans, objectives, assumptions, prospects, beliefs
and expectations, are forward-looking statements. Forward-looking statements are not guarantees of future performance and involve
inherent risks and uncertainties. These forward-looking statements are based on current plans, estimates and projections, and therefore
the reader should not place undue reliance on them. Actual results could differ materially and adversely from those expressed or
implied by the forward-looking statements as a result of factors that may be beyond the Company’s control.
High Level Summary of
ICA´s Statements of Cash Flows
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Presented below is ICA’s projected cash flows from 2016 to 2020 in MXN million:
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The change in accounts receivable is largely driven by the collection of overdue receivables and then collecting going forward
in a normalized time frame.
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Client advances is mainly the amortization of the advances during 2016 and 2017.
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The change in accounts payable is the amortization of the outstanding payables. Most of the non-project payables are amortized
straight line over 3 years starting July 1, 2016.
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Other Cash From Operations primarily includes cash taxes (in excess of MXN 5.1 billion during the projected period), and one-time
cash outflows including restructuring fees.
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Cash Flow from Investments mainly relates to distributions / management fees from subsidiaries, assets that have already been
sold, offset by capital expenditures on the Palmillas Concessions project in 2016.
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Cash Flow from Financing primarily includes debt service and new financing in the Concession segment, and to a lesser extent
the Construction segment. The Company’s business plan excludes debt service on Corporate debt and international project debt
that is to be sold or is unsecured.
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Disclaimer & Limitation
This summary contains information on the Company. Statements that
are not historical facts, including statements about the Company’s strategy, plans, objectives, assumptions, prospects, beliefs
and expectations, are forward-looking statements. Forward-looking statements are not guarantees of future performance and involve
inherent risks and uncertainties. These forward-looking statements are based on current plans, estimates and projections, and therefore
the reader should not place undue reliance on them. Actual results could differ materially and adversely from those expressed or
implied by the forward-looking statements as a result of factors that may be beyond the Company’s control.
SIGNATURE
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto
duly authorized.
Date: June 17, 2016
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Empresas ICA, S.A.B. de C.V.
/s/ Pablo Garcia
Name: Pablo Garcia
Title: Chief Financial Officer
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