MEXICO CITY, Nov. 28, 2016 (GLOBE
NEWSWIRE) -- Empresas ICA, S.A.B. de C.V.
(BMV:ICA), announced today its unaudited results for the third
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. ICA is no longer
consolidating San Martín, effective on the fourth quarter of 2015.
In addition, ICA is no longer consolidating Facchina as of the
third quarter of 2016 and has been presented as a discontinued
operation. Financial statements from prior periods have been
restated for comparability to reflect the sale suspension of social
infrastructure projects and the deconsolidation of
Facchina.
- 3Q16 Airports and Concessions
segments grew 29% and 2%, respectively versus 3Q15.
- Construction Revenues decreased 71%
in 3Q16 versus 3Q15 as a result of our foreign exit strategy,
including Facchina, and the completion of Mexican projects,
principally urban construction works.
- Ps. 4,531 million net loss generated
principally as a result of the effect of a Ps. 2,090 million
foreign exchange conversion loss, and the recognition of equity
value loss in Facchina, as a result of our foreign exit
strategy.
- Comprehensive backlog was Ps. 52,776
million at September 30th, 2016, of which Ps. 29,360 million
corresponds to ICA's participation in non-consolidated affiliates
and joint ventures.
- The company continues to focus on
its operating restructuring process as well as preparing to
initiate a negotiation with its debt-holders that will allow for
the conclusion of its financial restructure.
Consolidated
Financial Results
| |
|
|
|
|
|
|
|
| |
Consolidated Results |
|
|
|
9
months |
| |
Ps.
million |
3Q15 |
3Q16 |
%
Chg |
|
2015 |
|
|
2016 |
|
%
Chg |
| |
Revenues |
|
7,739 |
|
|
5,060 |
|
|
(35 |
) |
|
23,932 |
|
|
14,581 |
|
|
(39 |
) |
| |
Operating Income |
|
1,179 |
|
|
881 |
|
|
(25 |
) |
|
4,018 |
|
|
2,538 |
|
|
(37 |
) |
| |
Consolidated Net Loss |
|
(2,258 |
) |
|
(4,531 |
) |
|
(101 |
) |
|
(3,323 |
) |
|
(8,631 |
) |
|
(160 |
) |
| |
Net Loss of Controlling
Interest |
|
(2,507 |
) |
|
(4,970 |
) |
|
(98 |
) |
|
(3,920 |
) |
|
(9,697 |
) |
|
(147 |
) |
| |
Adjusted EBITDA |
|
1,713 |
|
|
1,224 |
|
|
(29 |
) |
|
5,502 |
|
|
3,689 |
|
|
(33 |
) |
| |
Operating Margin |
|
15.2 |
% |
|
17.4 |
% |
|
|
16.8 |
% |
|
17.4 |
% |
|
| |
Adjusted EBITDA Margin |
|
22.1 |
% |
|
24.2 |
% |
|
|
23.0 |
% |
|
25.3 |
% |
|
| |
EPS (Ps.) |
|
(4.09 |
) |
|
(8.13 |
) |
|
-- |
|
|
(6.38 |
) |
|
(15.87 |
) |
|
-- |
|
| |
EPADS (US$) |
|
(0.96 |
) |
|
(1.66 |
) |
|
-- |
|
|
(1.49 |
) |
|
(3.24 |
) |
|
-- |
|
| |
|
|
|
|
|
|
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|
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|
Third quarter Consolidated
Revenues decreased 35% to Ps. 5,060 million from Ps. 7,739 million
in 3Q15. This reduction was principally the result of the slow-down
in Construction Revenues caused by the foreign exit strategy and
the completion of urban construction works. 3Q16 Construction
Revenues are stabilized compared to 1Q16.
Third quarter Consolidated
Adjusted EBITDA went to Ps. 1,224 million and 24.2% margin from Ps.
1,713 million and 22.1% margin in 3Q15. For the 9-month accumulated
period, EBITDA margin increased to 25.3% in 2016 from 23.0% in
2015. This margin increase was the result of Concessions and
Airport segments growth and a reduction in general expenses.
The Consolidated Net loss was Ps.
4,531 million in 3Q16. The foreign exchange conversion loss was
Ps. 2,090 million in 3Q16 and Ps. 3,920 million for the
9-month accumulated period. Third quarter loss per share was Ps.
8.13 (US$ 1.66 per ADS).
Liquidity
and Debt
Total consolidated debt decreased
4% to Ps. 65,005 million at September 30, 2016, as compared to Ps.
67,617 million at December 31, 2015. The decrease was
principally the result of loan payments made in 1Q16 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
from December 31, 2015 to September 30, 2016.
Total cash dropped 12% to Ps.
8,186 million at September 30, 2016 from Ps. 9,258 million at
December 31, 2015. This total cash reduction was generated in the
Concessions and Construction segments to boost production in major
projects such as Palmillas - Apaseo El Grande toll road.
Ps. 4,574 million of total cash is
restricted and Ps. 3,612 is unrestricted. Ps. 2,736 million of
non-restricted cash is in OMA. On November 2016, as means of
preparing the execution of new projects including the new NAICM
terminal foundation slab project, ICA Promotora de Infraestructura
(ICAPI) and Controladora de Operaciones de Infraestructura
(CONOISA) disbursed the first tranch of the Fintech convertible
loan.
Comprehensive backlog
To see a chart of the
Comprehensive backlog please
visit http://www.globenewswire.com/NewsRoom/AttachmentNg/7ca3ec4a-80f2-481d-88f1-08beb2d6c52f.
Comprehensive backlog, including
ICA's share of unconsolidated affiliates and joint ventures
backlog, decreased 18% to Ps. 52,776 million at September 30, 2016
from 64,543 million at December 31, 2015, principally due to the
foreign exit strategy, execution of construction work in Mexico and
the deconsolidation of Facchina.
Civil Construction Backlog
decreased 28% to Ps. 23,416 million at September 30, 2016 from Ps.
32,380 million at December 31, 2015, principally due to the foreign
exit strategy and the completion of construction works in
Mexico.
ICA's share of unconsolidated
affiliates and joint ventures backlog (mainly ICA Fluor) decreased
9% to 29,360 million at September 30, 2016 from Ps. 32,163 million
at December 31, 2015 due to construction works execution during
this period.
Reduction in
Costs and Expenses
Technical-administrative workforce
has been reduced by 51% to 1,773 as of September 30, 2016 from
3,619 as of December 31, 2015.
Financial
and Operational Restructuring Activities
ICA is currently focused on the
consolidation of its operational restructuring and ensuring the
long term continuity of the business in order to be in the position
to define its financial restructuring plan.
Subsequent
Events
On November 3, 2016, the Board of
Directors named Guadalupe Phillips as CEO.
On October 21st, the company was
awarded a Ps. 7,555 million contract for the New Mexico City
International Airport (NAICM) terminal's foundation slab. The new
contract will be reflected in the Consolidated Backlog at December
31, 2016.
On October 6, ADP announced its
decision to sell its shareholding in OMA held through SETA, and ICA
therefore consolidates 100% of SETA and continues to own directly
and indirectly 14.3% of OMA.
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 stock exchange.
For more information, visit ir.ica.mx.