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Full year 2011 Revenue rises 24% and Adjusted EBITDA grows 45%
- 16 consecutive quarters of growth in Revenue and Adjusted EBITDA
MEXICO CITY, Feb. 27, 2012 (GLOBE NEWSWIRE) -- Empresas ICA, S.A.B. de C.V. (BMV:ICA) (NYSE:ICA), the largest engineering, construction, procurement and infrastructure company in Mexico, announced today its unaudited results for the fourth quarter of 2011 and full year 2011.
ICA delivered strong growth and operating profitability in 4Q11 and in the full year 2011. Consolidated revenue rose 42% in the fourth quarter and 24% for the year. All five business divisions reported growth for both the quarter and the full year, led by Concessions and Civil Construction. Adjusted EBITDA rose 40% in 4Q11; for the full year, Adjusted EBITDA increased 45% with a margin of 15.4%. This marks the 16th quarter in a row where ICA has delivered growth in both revenues and Adjusted EBITDA. During the year, we sustained the level of construction backlog, including the award of contracts in three Latin American countries. The results of the year, the level of backlog, and the portfolio of 16 highway, water, and social infrastructure concessions in operation and under construction confirm ICA as Mexico's leading construction and infrastructure operations company.
| Consolidated Results | 12 months | |||||
| Ps. million | 4Q10 | 4Q11 | % Chg | 2010 | 2011 | % Chg |
| Revenues | 9,010 | 12,785 | 42 | 34,476 | 42,769 | 24 |
| Operating Income | 492 | 784 | 59 | 2,238 | 3,696 | 65 |
| Consolidated Net Income | 119 | 168 | 42 | 971 | 1,790 | 84 |
| Net Income of Controlling Interest | 70 | 127 | 82 | 629 | 1,480 | 135 |
| Adjusted EBITDA | 1,229 | 1,715 | 40 | 4,529 | 6,588 | 45 |
| Operating Margin | 5.5% | 6.1% | 6.5% | 8.6% | ||
| Adjusted EBITDA Margin | 13.6% | 13.4% | 13.1% | 15.4% | ||
| EPS (Ps.) | 0.11 | 0.21 | 96 | 0.97 | 2.34 | 141 |
| EPADS (US$) | 0.03 | 0.06 | 73 | 0.31 | 0.67 | 114 |
The following are highlights of the fourth quarter:
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Total revenue grew 42% in 4Q11 as compared to 4Q10, led by Civil Construction, Concessions, and Airports. All five business segments reported growth.
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Operating income increased 59% and Adjusted EBITDA increased 40% as compared to 4Q10 primarily as a result of growth in Concessions and solid growth in Civil Construction, Industrial Construction, and Airports.
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The comprehensive financing cost was Ps. 670 million, as compared to Ps. 370 million in 4Q10, principally as a result of an exchange loss and mark to market losses on financial derivatives. These losses do not represent cash outflows.
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The Corredor Sur concession, which was sold in 3Q11, is treated as a discontinued operation, and prior period results were restated accordingly.
- Consolidated net income and Net Income of Controlling Interest reached Ps. 168 million and Ps. 127 million, respectively, in 4Q11. The strong growth in operating income offset the increase in comprehensive financing cost described above.
| 12 months | ||||||
| Key Indicators | 4Q10 | 4Q11 | % Chg | 2010 | 2011 | % Chg |
| Construction: Backlog | 35,300 | 35,319 | 0 | |||
| Concessions: Highway traffic, ADTV | 11,603 | 17,468 | 51 | 11,522 | 16,651 | 45 |
| Airports: Passenger traffic (thousands) | 2,811 | 3,009 | 7 | 11,588 | 11,772 | 2 |
| Housing: Units sold in Mexico | 2,032 | 1,901 | (6) | 7,116 | 6,797 | (4) |
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Civil and Industrial Construction (together 77% of consolidated revenue and 40% of Adjusted EBITDA as of 4Q11) showed strong growth, principally as a result of the execution of projects that started in 2011 such as two social infrastructure projects under long-term Service Provider Contracts (SPCs) and the Autovía Urbana Sur highway, as well as the Rio de los Remedios highway and the clean fuels refinery upgrade projects.
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Construction backlog reached Ps. 35,319 million as of December 31, 2011, unchanged as compared to December 31, 2010. The principal new projects were the International Convention Center in Los Cabos and the expansion of the Atlantic petroleum terminal in Costa Rica (Civil Construction), as well the PB Litoral T oil drilling platform and the Ethylene XXI petrochemical plant (Industrial Construction).
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Concessions (8% of revenue and 32% of Adjusted EBITDA as of 4Q11) benefited from increases in financial income and construction revenues from the concessions under construction, especially the SPC projects that are advancing at an accelerated rate. During 2011, the Rio de los Remedios tollroad started partial operations of segments 1 and 2, while segment 3 continues to be under construction with expected completion in 2Q12. Operating revenues of the operating highway concessions increased 8% in 4Q11.
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As of December 31, 2011, ICA's concessions division is developing 16 projects, including nine highways, five water projects, and two SPCs. Of these, ten are under construction, five are in full operation, and one is in partial operation.
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Airports (6% of revenue and 18% of Adjusted EBITDA as of 4Q11) benefited from a 7.1% increase in passenger traffic volume, higher passenger charges and fees for aeronautical services, and growth in non-aeronautical revenues as the result of commercial initiatives, a new advertising agreement, and actions to diversify revenues. This segment operates 13 airports.
- Housing development (9% of revenue and 10% of Adjusted EBITDA as of 4Q11) reported an increase of 46% in revenue, principally because of land sales. Adjusted EBITDA was Ps. 159 million.
ICA's full earnings report is available at www.ica.com.mx
Conference Call Invitation
ICA's conference call will be held on Monday, February 27, at 12:00 pm Eastern Time (11:00 am Mexico City time). To participate, please dial toll-free 1-877-941-1427 from the U.S. or 1-480-629-9664 internationally. The conference ID is 4514582. The conference call will be Webcast live through streaming audio and available on ICA's website at http://www.ica.com.mx/ir
A replay will be available until March 5, 2012 by calling toll-free 1-877-870-5176 from the U.S. or 1-858-384-5517 internationally, using conference ID 4514582.
The Empresas ICA, S.A.B. de C.V. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10914
This press release may contain 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 construction and infrastructure operations company. Founded in 1947, ICA's principal lines of business are civil and industrial construction and engineering; infrastructure operations, including airports, toll roads, and water systems; and homebuilding. For more information visit www.ica.com.mx.