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Empresas ICA Announces Unaudited Third Quarter 2012 Results(October 26, 2012)
MEXICO CITY, Oct. 26, 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 third quarter of 2012.
Summary for the Third Quarter
ICA delivered solid results in the third quarter of 2012. Consolidated revenue rose 8% in 3Q12, compared to 3Q11. All five business segments reported growth for the quarter, and results for the quarter include the consolidation of San Martín Contratistas Generales, S.A. in Peru. Adjusted EBITDA was Ps. 1,700 million in 3Q12 and net income of controlling interest was Ps. 351 million. Comparisons with 3Q11 are affected by the gain on sale of two Public Private Partnership (PPP) highways and the Corredor Sur concession in 3Q11. As a result, Adjusted EBITDA decreased 12% in 3Q12 compared to 3Q11, which included the gain on sale of the two PPP highways. Adjusted EBITDA for the first nine months of 2012 increased 7% compared to the same period of 2011, with an Adjusted EBITDA margin of 14.2%.
Net income of the controlling interest decreased 61%, while earnings per share decreased 60% to Ps. 0.58. The reductions were principally the result of the gains on sale in 3Q11 mentioned above, which were partially offset by exchange gains from the appreciation of the peso. For the first nine months of 2012, net income of the controlling interest was essentially unchanged, while earnings per share rose 5% to Ps. 2.22, reflecting the impact of the share repurchases and their subsequent cancellations last year.
Construction backlog rose to Ps. 42,488 million, an increase of 20% as compared to December 31, 2011. The construction backlog positions the Company positively during the coming months, as a new government takes office.
In addition to our construction backlog, we recorded Ps. 6,409 million of long-term mining services contracts, due to the acquisition of San Martin in June 2012. These mining services contracts are not included in construction backlog.
ICA recorded significant operational accomplishments in 3Q12 and October, including the start of testing of the first turbine of the La Yesca hydroelectric project and traffic growth in the Airports division and operating concessioned highways. In addition, the Metro Line 12 has ended its testing phase, and will start operations in the coming days.
Consolidated Net Income
Net Income of Controlling Interest
Adjusted EBITDA Margin
Highlights of the third quarter include:
Total revenue grew 8% in 3Q12 as compared to 3Q11. All five business segments reported growth. Progress in the execution of the principal Industrial Construction and Civil Construction projects contributed more than 56% of overall growth in revenue.
Operating income decreased 30% and Adjusted EBITDA decreased 12% as compared to 3Q11. The decrease was principally the result of the gain of Ps. 440 million in 3Q11 from the sale of the two PPP highways to our affiliate Red de Carreteras de Occidente (RCO). Excluding the effect of this transaction in the 3Q11 results, Adjusted EBITDA would have increased 14% in 3Q12.
Comprehensive financing cost was Ps. 142 million in 3Q12, down 93% from the prior year period. There was a significant exchange gain because of the appreciation of the peso in 3Q12 as compared to an exchange loss in 3Q11.
Consolidated net income was Ps. 499 million, a decrease of 48%. The reduction is principally a result of the gain on sale of the PPP highways and the Corredor Sur tollroad in 3Q11.
Net income of controlling interest was Ps. 351 million in 3Q12. Earnings per share were Ps. 0.58 (US$ 0.18 per ADS).
Contracted Mining Services
Concessions: Highway traffic, ADTV
Airports: Passenger traffic (thousands)
Housing: Units sold in Mexico
* As of December 31, 2011
Civil Construction and Industrial Construction (together representing 79% of consolidated revenue and 46% of Adjusted EBITDA in 3Q12) showed strong growth. In Civil Construction, the increase came principally as a result of progress on the Rio de los Remedios-Ecatepec highway, the Autovía Urbana Sur highway, and the Metro Line 12 projects. Industrial Construction revenue growth was led by execution of private sector projects and the clean fuels refinery upgrades.
The La Yesca hydroelectric project continues to advance in line with its scheduled completion at the end of 2012. The first turbine unit is currently undergoing the testing required for client acceptance. ICA expects to receive the first payment from Mexico's Federal Electricity Commission (CFE) in the coming weeks, and will use the proceeds to repay the project's debt.
Construction backlog reached Ps. 42,488 million as of September 30, 2012, an increase of 20% as compared to December 31, 2011. Additions to backlog during the quarter totaled Ps. 10,109 million, as a result of ICA's strong promotion efforts. The principal new Civil Construction projects were the TEC II container terminal in the port of Lázaro Cárdenas, the extension of the Mayab tollroad to Playa del Carmen, and a contract for expansion of the Mexico City-Pachuca highway. In Industrial Construction, we increased the clean fuels contract for the Salina Cruz refinery and for the Poza Rica Cryogenic Plant 1.
In addition, starting in 3Q12, we began reporting long-term mining and other services contracts for San Martín with a value of Ps. 6,409 million. San Martín is consolidated in our Civil Construction division.
Concessions (8% of revenue and 28% of Adjusted EBITDA in 3Q12) benefited from increases in financial income and construction revenues from the concessions under construction and from revenues from concessions in operation (which rose 18% in 3Q12).
As of September 30, 2012, ICA's Concessions segment was participating in 18 projects, including ten highways, five water projects, two SPCs, and one port. Of these, nine were under construction, five were in full operation, and four were in partial operation. The projects in partial operation are the Rio de los Remedios highway, the Autovía Urbana Sur highway, and the two SPCs.
Airports (6% of revenue and 21% of Adjusted EBITDA in 3Q12) benefited from a 9% increase in passenger traffic volume as the air transport sector continues to recover. In addition, OMA's commercial and diversification initiatives continue to drive non-aeronautical revenue growth.
Housing development (7% of revenue and 5% of Adjusted EBITDA in 3Q12) revenues increased principally due to growth in sales by Los Portales in Peru.
ICA's complete 3Q12 Earnings Report is available on the Investor Relations page of www.ica.com.mx/ir.
Conference Call Invitation
ICA's conference call will be held on Monday, October 29, at 11:00 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 4568288. 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 5, 2012 by calling toll-free 1-877-870-5176 from the U.S. or 1-858-384-5517 internationally, again using conference ID 4568288.
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.
The Empresas ICA, S.A.B. de C.V. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10914
CONTACT: Investor Relations:
(5255) 5272 9991 ext.3692
Victor Bravo, CFO
In the United States:
Daniel Wilson, Zemi Communications
(1212) 689 9560
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