Empresas ICA Announces Unaudited Second Quarter 2012 Results
Empresas ICA, S.A.B. de C.V.
Empresas ICA Announces Unaudited Second Quarter 2012 Results
MEXICO CITY, 2012-07-27 15:15 CEST (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 second quarter of 2012.
ICA delivered strong revenue and earnings in 2Q12. Consolidated revenue rose
23% in the second quarter of 2012, compared to the second quarter of 2011. All
five business segments reported growth for the quarter, led by Civil
Construction and Concessions. Adjusted EBITDA rose 14% to Ps. 1,831 million in
2Q12. This marks the 18th quarter in a row where ICA has delivered growth in
both revenues and Adjusted EBITDA. Net income of controlling interest rose 10%.
Earnings per share increased 17% to Ps. 0.28, after taking into account the
repurchase and cancellation of shares in 2011.
Construction backlog rose to Ps.41,535 million. This backlog level positions
the Company positively during the coming months, as a new government takes
ICA recorded significant operational accomplishments in the quarter, including
the early delivery of the Los Cabos convention center in time to serve as the
site of the G20 heads of state meeting, the start of operational testing of the
Metro Line 12, the opening of another segment of the Rio de los
Remedios-Ecatepec tollroad, and positive passenger traffic growth trends in the
Airports division, among others.
Consolidated Results 6 months
Ps. million 2Q11 2Q12 % Chg 2011 2012 % Chg
Revenues 10,163 12,527 23 18,561 24,564 32
Operating Income 946 1,030 9 1,624 2,026 25
Consolidated Net Income 272 199 (27) 663 1,185 79
Net Income of Controlling Interest 155 170 10 455 991 118
Adjusted EBITDA 1,610 1,831 14 2,939 3,527 20
Operating Margin 9.3% 8.2% 8.8% 8.2%
Adjusted EBITDA Margin 15.8% 14.6% 15.8% 14.4%
EPS (Ps.) 0.24 0.28 17 0.70 1.62 131
EPADS (US$) 0.08 0.08 4 0.24 0.49 106
Highlights of the second quarter include:
-- Total revenue grew 23% in 2Q12 as compared to 2Q11. All five business
segments reported growth. Progress in the execution of the principal Civil
Construction projects contributed more than 70% of overall growth in
revenue, followed by Industrial Construction.
-- Operating income increased 9% and Adjusted EBITDA increased 14% as compared
to 2Q11. The principal business segments contributed to the increase.
-- Comprehensive financing cost increased to Ps. 738 million in 2Q12 from Ps.
606 million in 2Q11, principally as a result of an increased exchange loss
from the depreciation of the peso in the quarter.
-- Consolidated net income was Ps. 199 million as a result of the strong
growth in operating income. Net Income of Controlling Interest increased
10% to Ps. 170 million in 2Q12. Earnings per share reached Ps. 0.28 (US$
0.08 per ADS).
Key Indicators 2Q11 2Q12 % Chg Jan-Jun Jan-Jun % Chg
Construction: Backlog 41,832 41,535 (1) 35,319* 41,535 18
Concessions: Highway traffic, 16,375 18,162 11 16,196 18,069 12
Airports: Passenger traffic 2,911 3,038 4 5,603 5,934 6
Housing: Units sold in Mexico 1,694 1,672 (1) 3,250 3,484 7
* As of December 31, 2011
-- Civil Construction and Industrial Construction (together representing 79%
of consolidated revenue and 43% of Adjusted EBITDA in 2Q12) showed strong
growth. In Civil Construction, the increase came principally as a result of
the two social infrastructure projects under long-term Service Provider
Contracts (SPCs), the Autovia Urbana Sur highway, and the Los Cabos
International Convention Center. Industrial Construction revenue growth was
led by execution of private sector projects and the clean fuels refinery
-- The La Yesca hydroelectric project continues to advance in line with its
completion at the end of 2012. The reservoir continues to fill, which is a
critical step before starting the tests required for the delivery of La
Yesca to Mexico's Federal Electricity Commission (CFE).
-- On May 30, 2012, ICA announced the acquisition of a 51% controlling
interest in San Martin Contratistas Generales, S.A., Peru's leading company
dedicated principally to construction in the mining sector. San Martin's
financial statements are consolidated effective June 30, 2012.
-- Construction backlog reached Ps. 41,535 million as of June 30, 2012, an
increase of 18% as compared to December 31, 2011. Additions to backlog
during the quarter totaled Ps. 15,102 million, as a result of ICA's strong
promotion efforts. The principal new Civil Construction projects were the
Barranca: Larga-Ventanilla highway and the multi-year contract for the
modernization and maintenance of the federal highways in Sonora. Industrial
Construction new contracts included the contract for the Ayatsil C offshore
platform for Pemex.
-- Concessions (9% of revenue and 35% of Adjusted EBITDA in 2Q12) benefited
from increases in financial income and construction revenues from the
concessions under construction, particularly the SPC projects that are
advancing at an accelerated rate and are in their final phase. Revenues
from concessions in operation rose 86% in 2Q12.
-- ICA acquired the remaining 50% of the Rio de los Remedios-Ecatepec tollroad
that is structured as a long-term public financed work, taking advantage of
the opportunity to consolidate the value in our asset portfolio. ICA now
owns 100% of this project.
-- As of June 30, 2012, ICA's Concessions segment was participating in 17
projects, including ten highways, five water projects, and two SPCs. Of
these, 11 are under construction, five are in full operation, and one is in
-- Airports (6% of revenue and 18% of Adjusted EBITDA in 2Q12) benefited from
a 4% 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 (6% of revenue and 4% of Adjusted EBITDA in 2Q12) had a
2% increase in revenues, as a result of a change in the mix of units sold
ICA's complete 2Q12 earnings report may be found at: www.ica.com.mx/ir
Conference Call Invitation
ICA's conference call will be held on Monday, July 30, at 10:00 am Eastern Time
(9:00 am Mexico City time). To participate, please dial toll-free
1-877-941-8416 from the U.S. or 1-480-629-9808 internationally. The conference
ID is 4552502. 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 August 6, 2012 by calling toll-free
1-877-870-5176 from the U.S. or 1-858-384-5517 internationally, again using
conference ID 4552502.
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
CONTACT: Investor Relations:
(5255) 5272 9991 ext.3692
Victor Bravo, CFO
In the United States:
Daniel Wilson, Zemi Communications
(1212) 689 9560