MEXICO CITY, July 28, 2014 (GLOBE NEWSWIRE) -- Empresas ICA, S.A.B. de C.V. (BMV:ICA) (NYSE:ICA), the largest infrastructure and construction company in Mexico, announced today its unaudited results for the second quarter of 2014, which have been prepared in accordance with International Financial Reporting Standards.
The results of the second quarter of 2013 have been restated in accordance with IFRS 5, "Non-current Assets Held for Sale and Discontinued Operations," as a result of the strategic partnership for social infrastructure projects announced on January 22, 2014 between ICA and CGL.
Summary
The results of the second quarter of 2014 show a significant increase in revenues, principally as the result of growth in the Construction segment. This growth includes the recent acquisition of the Facchina Construction Group (FCG) in the United States as well as the execution of existing contracts. The Concessions segment continues to strengthen its operational indicators, while Airports segment continued to contribute to growth.
During the first six months of 2014, ICA delivered sustained growth in the three principal business segments. Consolidated revenues grew 21%, while Adjusted EBITDA increased 26% to Ps. 3,126 million, with an Adjusted EBITDA margin of 18.3%, in line with the Company's outlook for the full year. Construction showed a significant rebound in both revenues and Adjusted EBITDA margin. The Concessions segment reflected the growth of the operating concessioned projects. The Airports segment delivered continued growth in both aeronautical and non-aeronautical revenues. ICA's share in the net income of non-consolidated affiliates and joint ventures reflected good operating performance by these businesses.
ICA also placed US$ 700 million in senior notes due 2024. The proceeds were used to prepay US$ 200 million in notes due 2017 and pay short-term Corporate and Construction segment debt, improving significantly the Company's debt maturity profile.
ICA's maturing portfolio of assets and its interest in affiliated companies and joint ventures delivered a solid performance in the first half of 2014, and the Company expects this performance to continue.
| Consolidated Results | 6 months | |||||
| Ps. million | 2Q13 | 2Q14 | % Chg | 2013 | 2014 | % Chg |
| Revenues | 7,837 | 9,063 | 16 | 14,063 | 17,043 | 21 |
| Operating Income | 1,498 | 1,161 | (22) | 1,684 | 2,242 | 33 |
| Consolidated Net Income (Loss) | (336) | 22 | 107 | (63) | 259 | 513 |
| Net Income (Loss) of Controlling Interest | (501) | (149) | 70 | (337) | (173) | 49 |
| Adjusted EBITDA | 1,802 | 1,547 | (14) | 2,474 | 3,126 | 26 |
| Operating Margin | 19.1% | 12.8% | 12.0% | 13.2% | ||
| Adjusted EBITDA Margin | 23.0% | 17.1% | 17.6% | 18.3% | ||
| EPS (Ps.) | (0.82) | (0.25) | 70 | (0.56) | (0.28) | 49 |
| EPS ADS (US$) | (0.25) | (0.08) | 70 | (0.17) | (0.09) | 49 |
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Revenues in 2Q14 increased 16% to Ps. 9,063 million from Ps. 7,837 million. Construction segment revenues increased 22%, as a result of the acquisition of FCG and the execution of existing projects. Concessions revenue decreased because of the timing of the recognition of Rio de los Remedios revenues in 2Q13. Airports segment revenues grew 7%.
- Adjusted EBITDA decreased 14% to Ps. 1,547 million in 2Q14, principally because of the Ps. 498 million gain on sale of the RCO tollroads in the prior year period. The Adjusted EBITDA margin was 17.1%.
| Key Indicators | Dec-13 | Jun-14 | % Chg |
| Construction: Backlog | 30,658 | 28,530 | (7) |
| Contracted Mining Services | 5,700 | 5,202 | (9) |
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Construction backlog was Ps. 28,530 million as of June 30, 2014, 7% below the level as of December 31, 2013, as the result of execution of existing contracts. In addition, ICA has long-term mining and other services contracts of Ps. 5,202 million, while backlog of non-consolidated subsidiaries and joint ventures rose 137% to Ps. 25,722 million.
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Comprehensive financing cost decreased 37% to Ps. 1,392 million in 2Q14. This was principally the result of an exchange gain of Ps. 119 million as compared to an exchange loss of Ps. 1,255 million in 2Q13. Comprehensive financing cost includes a total of Ps. 584 million for the accelerated amortization of placement expenses on the repurchased notes, the prepayment premium offered to holders, commissions, and the amortization of new issue expenses.
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Consolidated net income was Ps. 22 million in 2Q14, as compared to a loss in the prior year period. The improvement reflected principally the reduction in comprehensive financing cost and the positive performance of affiliated companies and joint ventures.
- The loss of the controlling interest was Ps. 0.25 per share or US$ 0.08 per ADS.
| Key Indicators | 2Q13 | 2Q14 | % Chg | 2013 | 2014 | % Chg |
| Concessions: Highway traffic, ADTV | 30,552 | 41,466 | 36 | 27,564 | 40,166 | 46 |
| Airports: Passenger traffic (thousands) | 3,208 | 3,578 | 12 | 6,238 | 6,814 | 9 |
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The traffic volumes for the concessioned highways and airports rose 36% and 12%, respectively.
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In 2Q14, the Construction segment contributed 77% of consolidated revenues and 40% of Adjusted EBITDA; Concessions contributed 13% of revenues and 33% of Adjusted EBITDA; and Airports contributed 10% of revenues and 27% of Adjusted EBITDA.
- As of June 30, 2014, Concessions participated in 17 projects: 10 highways, four water projects, two social infrastructure projects, and a port. Of these, eight were in operation, and nine were in the construction phase.
ICA's complete earnings report is available at http://ir.ica.mx
Conference Call Invitation
ICA's conference call will be held on Tuesday, July 29, at 10:00 am Eastern Time (9:00 am 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 71716570. 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 August 4, 2014 by calling toll-free (855) 859-2056 from the U.S. or +1 (404) 537-3406 internationally, again using conference ID 71716570.
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 http://ir.ica.mx.