MEXICO CITY, Oct. 27, 2011 (GLOBE NEWSWIRE) -- Empresas ICA, S.A.B. de C.V. (BMV:ICA) and (NYSE:ICA), the largest engineering, construction, procurement and infrastructure company in Mexico, announced today its unaudited results for the third quarter of 2011.
Summary
ICA reported strong growth and operating performance in 3Q11, with double-digit growth in revenues and Adjusted EBITDA. The quarter marks the 15th quarter in a row where ICA has delivered year-over-year growth in both revenue and Adjusted EBITDA. Results were further boosted by the completion of the sale of the Corredor Sur expressway in Panama and the transfer of two Public-Private Partnership (PPP) highways to our affiliate RCO. These transactions are part of ICA's active management of our portfolio of concessioned assets, and the proceeds will be used both to fund equity investments in other concessions under development as well as to strengthen our financial position.
The Corredor Sur concession was reclassified as a discontinued operation, and prior period results were restated for comparative purposes.
| Consolidated Results | 9 months | |||||
| Ps. million | 3Q10 | 3Q11 | % Chg | 2010 | 2011 | % Chg |
| Revenues | 9,336 | 11,424 | 22 | 25,464 | 29,984 | 18 |
| Operating Income | 597 | 1,295 | 117 | 1,783 | 2,914 | 63 |
| Consolidated Net Income | 135 | 965 | 613 | 681 | 1,623 | 138 |
| Net Income of Controlling Interest | 62 | 905 | 1,359 | 388 | 1,354 | 249 |
| Adjusted EBITDA | 1,139 | 1,941 | 70 | 3,339 | 4,874 | 46 |
| Operating Margin | 6.4% | 11.3% | 7.0% | 9.7% | ||
| Adjusted EBITDA Margin | 12.2% | 17.0% | 13.1% | 16.3% | ||
| EPS (Ps.) | 0.10 | 1.49 | 1,455 | 0.60 | 2.11 | 251 |
| EPADS (US$) | 0.03 | 0.43 | 1,311 | 0.19 | 0.61 | 219 |
The following are highlights of the third quarter:
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Total revenue grew 22% in 3Q11, led by Civil Construction and Concessions. Four of the five business segments reported growth.
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Operating income increased 117% and Adjusted EBITDA increased 70% as a result of the growth in Concessions from the gain on sale of the two PPP highways to RCO for Ps. 440 million and solid growth in Civil Construction, Industrial Construction, and Airports. Excluding the gain on sale, the increase in consolidated operating income would have been 43% and the increase in Adjusted EBITDA 32% in 3Q11.
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There was an exchange loss of Ps. 1,460 million in the quarter, principally as a result of the effect of the depreciation of the peso on the valuation of our U.S. dollar corporate bond. The loss does not represent a cash outflow, and the valuation will continue to fluctuate based on the exchange rate. ICA has hedged the first seven years interest payments, but not the principal amount which is due in 2021.
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The sale of the Corredor Sur tollroad was recorded under Discontinued Operations, and contributed, after tax, Ps. 1,374 million to 3Q11 Net Income.
- Net Income of Controlling Interest for 3Q11 reached Ps. 905 million as compared to Ps. 62 million in the prior year period. The strong increase in operating income and the gain on the Corredor Sur transaction more than offset the non-cash exchange loss.
| 9 months | ||||||
| Key Indicators | 3Q10 | 3Q11 | % Chg | 2010 | 2011 | % Chg |
| Construction: Backlog | 33,733 | 39,413 | 17 | 34,974* | 39,413 | 13 |
| Concessions: Highway traffic, ADTV | 11,688 | 16,667 | 43 | 11,494 | 16,502 | 44 |
| Airports: Passenger traffic (thousands) | 3,101 | 3,159 | 2 | 8,777 | 8,763 | (0) |
| Housing: Units sold in Mexico | 944 | 919 | (3) | 3,124 | 2,756 | (12) |
| * Balance at December 31, 2010 | ||||||
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Civil and Industrial Construction (81% of consolidated revenue and 45% of Adjusted EBITDA as of 3Q11) showed strong growth, principally as a result of the execution of projects such as the Rio de los Remedios highway, the Metro Line 12, and the clean fuels refinery upgrade projects. Margins in both segments improved because of the growth of revenue, a favorable mix of margins on certain projects, and operating efficiencies.
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Construction backlog reached Ps. 39,413 million as of September 30, 2011, an increase of 13% as compared to December 31, 2010 and 17% as compared to September 30, 2010. The principal new projects were the extension of the Corredor Norte in Panama and an EPC contract for the Dos Bocas Marine Terminal in Mexico.
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Concessions (7% of revenue, 36% of Adjusted EBITDA as of 3Q11) benefitted from increases in traffic volume on operational highways, and the gain on transfer of two PPP (Public-Private Partnership) highways to our affiliate RCO.
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As of September 30, 2011, ICA Concessions is developing 16 projects, including nine highways, five water projects, and two social infrastructure projects. Of these, 10 are under construction, five are in full operation, and one is in partial operation.
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Airports (6% of revenue, 15% of Adjusted EBITDA as of 3Q11) benefitted from increased traffic volume, higher passenger charges and fees for aeronautical services, and growth in non-aeronautical revenues. This segment operates 13 airports.
- Housing development (6% of revenue, 4% of Adjusted EBITDA as of 3Q11) reported decreased revenues and Adjusted EBITDA as a result of a lower number of units sold, in an environment that continues to be challenging.
The complete earnings report, including financial tables, is available at http://www.ica.com.mx/ir
Conference Call Invitation
ICA's conference call will be held on Friday, October 28, at 10:00 am Eastern Time (9:00 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 4478498. 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 November 4, 2011 by calling toll-free 1-877-870-5176 from the U.S. or 1-858-384-5517 internationally, using conference ID 4478498.
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/ir.
The Empresas ICA, S.A.B. de C.V. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10914