MEXICO CITY, Oct. 28, 2015 (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 third quarter 2015, which have been prepared in accordance with International Financial Reporting Standards.
Summary for the third quarter of 2015
ICA’s third quarter results reflect the condition of the Mexican economy, especially in the civil construction area, and the increase in financial expense from depreciation of the peso against the dollar. The Concessions, Airports, and ICA Fluor divisions generated strong results, which were offset by the results of the Construction division. The large exchange loss was principally responsible for ICA’s net loss in the quarter. In 3Q15, total revenues decreased 3% compared to 3Q14, with an Adjusted EBITDA margin of 15.5%.
The performance of concessioned infrastructure was a significant factor in the quarter. Auto traffic on operating highways grew 12%, and air traffic volumes grew 16% compared to the same period of 2014.
At the same time, comprehensive backlog remained strong at Ps. 56,072 million as of September 30, 2015. Most additions came from international operations and ICA Fluor.
ICA’s priority is the generation of cash from operations and capital recycling transactions in order to reduce leverage and preserve liquidity. In 3Q15, ICA generated resources totaling Ps. 1,915 million from the sale of real estate assets and 2.9% of OMA’s shares. The total resources generated in the first nine months reached Ps. 5,035 million, including the Ps. 3,120 million generated in the first half of the year. These resources were used principally to pay short-term and dollar-denominated debt. During the final quarter of 2015, ICA expects to generate approximately Ps. 2,000 million more through additional capital recycling transactions, in accordance with the business strategy.
| Consolidated Results | 9 months | |||||||||||||||||
| Ps. million | 3Q14 | 3Q15 | % Chg | 2014 | 2015 | % Chg | ||||||||||||
| Revenues | 8,752 | 8,486 | (3 | ) | 25,795 | 25,669 | -- | |||||||||||
| Operating Income | 1,112 | 750 | (33 | ) | 3,354 | 2,677 | (20 | ) | ||||||||||
| Consolidated Net Income | (519 | ) | (2,258 | ) | -- | (260 | ) | (3,323 | ) | -- | ||||||||
| Net Loss of Controlling Interest | (769 | ) | (2,507 | ) | -- | (942 | ) | (3,920 | ) | -- | ||||||||
| Adjusted EBITDA | 1,501 | 1,316 | (12 | ) | 4,627 | 4,254 | (8 | ) | ||||||||||
| Operating Margin | 12.7 | % | 8.8 | % | 13.0 | % | 10.4 | % | ||||||||||
| Adjusted EBITDA Margin | 17.2 | % | 15.5 | % | 17.9 | % | 16.6 | % | ||||||||||
| EPS (Ps.) | (1.25 | ) | (4.09 | ) | (1.55 | ) | (6.38 | ) | ||||||||||
| EPADS (US$) | (0.38 | ) | (0.96 | ) | (0.47 | ) | (1.49 | ) | ||||||||||
- Comprehensive backlog was Ps. 56,072 million, as compared to Ps. 63,295 million as of December 31, 2014. This includes construction contracts of Ps. 35,031 million, which include Ps. 5.766 million of new additions, long-term mining and other services contracts of Ps. 6,289 million, and ICA’s share of backlog of non-consolidated subsidiaries and joint ventures of Ps. 30,588 million, of which ICA’s proportionate share is 14,752 million.
| Key Indicators | Dec-14 | Sep-15 | % Chg | ||
| Comprehensive Backlog | 63,295 | 56,072 | (11 | ) | |
| Construction: Backlog | 36,957 | 35,031 | (5 | ) | |
| Contracted Mining Services | 5,108 | 6,289 | 23 | ||
| ICA´s Proportionate share of backlog of non-consolidated affiliates and JVs | 21,230 | 14,752 | (31 | ) | |
- Construction revenues decreased 3%, and construction Adjusted EBITDA fell 99%. Civil construction in Mexico was affected by the change in the mix of projects and delays in project execution. Mexico construction revenues decreased 16%, which was offset by a 17% increase in international construction revenues.
- ICA Fluor revenues rose 121%, and ICA Fluor Adjusted EBITDA increased 117%, with a margin of 9.5%, as the result of advances on projects such as the Tula Refinery coker plant and the Los Ramones II Sur gas pipeline.
- Concessions revenues rose 1%. Operating revenues (tolls and availability payments) rose 15% as a result of traffic growth. However, this was largely offset by a reduction in construction revenues. The Adjusted EBITDA margin was 52.9%. Non-consolidated concessions contributed Ps. 113 million in net income to 3Q15 results.
| Key Indicators | 3Q14 | 3Q15 | % Chg | 2014 | 2015 | % Chg |
| Concessions: Highway traffic, ADTV | 3,354 | 3,758 | 12 | 3,230 | 3,505 | 9 |
| Airports: Passenger traffic (thousands) | 3,953 | 4,577 | 16 | 10,768 | 12,550 | 17 |
- Average Daily Traffic Volumes rose 12%, with all highways showing growth, led by the Rio de los Remedios and Rio Verde-Ciudad Valles highways.
- As of September 30, 2015, Concessions included 17 projects, including ten highways, four water projects, two social infrastructure projects, and an energy project. Of these 11 are in operation, and six are under construction.
- Airports revenues increased 8%, with an Adjusted EBITDA margin of 51.7%. Aeronautical revenues and non-aeronautical revenues rose 16% and 30%, respectively, which were partially offset by a 58% decrease in construction revenues. Traffic volumes grew 16% in the quarter; all 13 airports had traffic growth, led by the Monterrey airport.
- ICA’s net debt reached Ps. 51,147 million as of September 30, an increase of Ps. 4,394 million from December 31, 2014. The increase principally resulted from the effect of the depreciation of the peso against the dollar (+ Ps. 4,591 million), and was partially offset by debt payments of Ps. 2,767 million, using the resources from capital recycling transactions and scheduled amortizations. ICA reduced short-term debt by Ps. 1,309 million, or 20%, since December 31, 2014 and paid US$ 130 million in dollar debt.
- Consolidated net loss was Ps. 2,258 million in 3Q15. Loss of the controlling interest was Ps. 4.09 per share or US$ 0.96 per ADS. The loss resulted principally from the slowdown in the construction industry in Mexico and the integral cost of financing, including an exchange loss of Ps. 2,991 million.
Conference Call Invitation
- ICA’s 3Q15 earnings conference call will be held on Thursday, October 29, at 12:00 pm Eastern Time (10:00 am Mexico City time). To participate, please dial toll-free (855) 826-6151 from the U.S. or +1 (559) 549-9841 The conference ID is 57601401. 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 November 5, 2015 by calling toll-free (855) 859-2056 from the U.S. or +1 (404) 537-3406 internationally, again using conference ID 57601401.
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.