Empresas ICA, S.A.B. de C.V. Fourth Quarter and Full Year 2015 Unaudited Results
(Thomson Reuters ONE) -
MEXICO CITY, March 30, 2016 (GLOBE NEWSWIRE) -- Empresas ICA, S.A.B. de
C.V. (BMV:ICA) (NYSE:ICA), announced today its unaudited results for the fourth
quarter and full year 2015, which have been prepared in accordance with
International Financial Reporting Standards. During the fourth quarter, the
Company suspended the sale of its social infrastructure projects. Accordingly,
these projects are no longer classified as available for sale, and financial
statements from prior periods have been restated for comparability. In addition,
ICA is no longer consolidating San Martín, effective October 1, 2015, as a
result of the reduction in ICA's shareholding to 31.2% from 51%.
* Total revenues decreased 53% in the fourth quarter, compared to the same
period of 2014
* Results for 4Q15 were affected by a 66% decrease in civil construction
revenues, compared to the same period of 2014
* Comprehensive backlog increased Ps. 1,578 million compared to end-2014
levels, principally because of new ICA Fluor contracts
* Operational and financial restructuring process began
* Payment of parent company financial debt suspended
* Headcount reduced by 51% to date from December 2014 levels, as part of
restructuring process
* Allowances, asset impairments, and provisions totaled Ps. 11,389 million for
the full year
Financial and Operating Results
Fourth quarter consolidated net revenues decreased 53% to Ps. 5,504 million from
Ps. 11,647 million in 4Q14. This reduction was principally the result of a lower
volumes of construction work on various projects, the completion of
international projects that contributed to results in 4Q14, and the
deconsolidation of San Martín effective 4Q15. Revenues of the Construction
segment decreased to Ps. 2,824 million in 4Q15 from Ps. 8,427 million in in
4Q14.
The consolidated net loss was Ps. 10,510 million in 4Q15 and Ps. 13,833 million
in the full year 2015. The net loss was principally the result of the reduction
in Construction segment revenues, allowances for doubtful accounts, asset
impairment losses, and the depreciation of the peso against the U.S. dollar.
Loss per share was Ps. 17.33 (US$ 4.00 per ADS) in 4Q15 and Ps. 23.65 (US$ 5.46
per ADS) in 2015.
Consolidated
Results 12 months
Ps. million 4Q14 4Q15 % Chg 2014 2015 % Chg
Revenues 11,647 5,504 (53 ) 39,428 33,229 (16 )
Operating
Income 1,695 (10,284 ) -- 6,044 (6,359 ) --
(Loss)
Consolidated (1,826 ) (10,510 ) -- (2,086 ) (13,833 ) --
Net (Loss)
Net Loss of
Controlling (2,082 ) (10,591 ) -- (3,024 ) (14,511 ) --
Interest
Adjusted 2,184 (9,873 ) -- 7,807 (4,371 ) --
EBITDA
----------------------------------------------------------------------------
Operating 14.5 % -186.8 % 15.3 % -19.1 %
Margin
Adjusted
EBITDA 18.8 % -179.4 % 19.8 % -13.2 %
Margin
----------------------------------------------------------------------------
EPS (Ps.) (3.38 ) (17.33 ) -- (4.97 ) (23.65 ) --
EPADS (US$) (0.92 ) (4.00 ) -- (1.35 ) (5.46 ) --
----------------------------------------------------------------------------
Allowances for doubtful accounts and asset impairment losses
ICA increased its allowance for doubtful accounts, recognized asset impairments,
and made restructuring provisions totaling Ps. 11,329 million in 2015. Of the
total, Ps. 5,381 million were increased allowances for doubtful accounts related
to the construction contracts for the Barranca Larga -Ventanilla tollroad, the
TECII terminal in the port of Lázaro Cárdenas, and the Rio de los Remedios
tollroad, as well as real estate inventories. In addition, there were Ps. 5,053
million in asset impairment losses, principally for the investments in the
Barranca Larga -Ventanilla and the Faros property in Panama. The impairment
charges and write-offs during the quarter and full year 2015 represent
management's best estimates and necessarily are based on estimates and
projections, which are subject to change based on future developments.
Accordingly, we may be required to adjust the amount of impairment charges and
write-offs in the future.
Provisions and impairment losses in 2015
Ps. million 4Q15 2015
By Line item, and category
Reversal of costs and estimated earnings 447 447
Revenues: in excess of billings
Costs: Allowance for doubtful accounts 5,309 5,381
Costs: Asset impairments 4,859 5,053
Other Expenses: Restructuring provisions 439 492
Other Expenses: Professional services for restructuring 15 15
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Total 11,069 11,389
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By Segment
Construction 6,550 6,655
Concessions 3,431 3,441
Corporate and Other 1,088 1,292
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Total 11,069 11,389
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The allowances and impairment losses affected the balance sheet as well as the
income statement. In addition, the balance sheet reflects the reclassification
to short-term of certain debt obligations in the Construction and Concessions
segments and the three corporate bonds that became due once there was a non-
compliance on payment obligations. As a result, current liabilities increased
to Ps. 57,618 million as of December 31, 2015, compared to Ps. 27,742 million as
of December 31, 2014.
Liquidity and Debt
Total consolidated debt increased 7% to Ps. 67,617 million as of December
31, 2015, as compared to December 31, 2014. The increase was principally the
result of the depreciation of the peso against the dollar. Foreign currency
denominated debt was 45% of the total.
Total cash was Ps. 9,258 million as of December 31, 2015. Of this, Ps. 4,442
million was restricted cash, and Ps. 4,816 million was unrestricted, of which
Ps. 2,697 million was unrestricted cash held at OMA.
Comprehensive backlog
Comprehensive backlog, including ICA's share of backlog reached Ps. 64,873
million as of December 31, 2015, an increase of Ps. 1,578 million compared to
December 31, 2014. The increase was the result of increases in backlog of non-
consolidated affiliates and joint ventures (principally at ICA Fluor), which
grew 49% to Ps. 65,366 million; ICA's proportional share was Ps. 32,163 million,
as of December 31, 2015.
A graph accompanying this announcement is available
at http://www.globenewswire.com/NewsRoom/AttachmentNg/77b42009-79e3-4959-a449-
07e2ced63ab2
Restructuring Activities
During the fourth quarter of 2015, ICA entered into a process of operational
restructuring, in order to reduce costs and expenses. Through December
31, 2015, technical and administrative headcount decreased 22%, and costs
decreased 15% from the levels as of December 2014. As of the date of this
report, technical and administrative headcount has decreased 51% and costs 46%.
In addition, ICA suspended payments related to its non-guaranteed financial
debt, including the three corporate bonds maturing in 2017, 2021, and 2024; the
Company is currently focusing its efforts on the definition of a restructuring
plan.
ICA is designing the financial restructuring plan together with its advisors,
Rothschild México and FTI Consulting. These initiatives are led by ICA's new
management team headed by Chief Executive Officer Luis Zárate Rocha and Chief
Restructuring Officer Guadalupe Phillips Margáin.
Subsequent events
Payment of secured debt and sale of OMA shares. The suspension of payment by
ICA of interest on the three corporate bonds triggered cross-default clauses on
credits from Santander, Deutsche Bank, and Barclays that were secured with
Series B shares of OMA. As a result, Ps. 4,704 million of debt was paid in
February and March 2016. In addition, a Ps. 600 million loan from Value, also
secured with OMA B shares, was paid in March 2016 upon sale of the pledged
shares.
As a result, as of the date of this report, ICA's total debt is as shown in the
following table:
--------------------------------------
12/31/15 Payments 3/29/16
--------------------------------------
Securities debt, short term 23,348 23,348
Bank debt, short term 10,988 (5,304 ) 5,683
Securities debt, long term 24,309 24,309
Bank debt, long term 8,972 8,972
--------------------------------------
67,617 (5,304 ) 62,313
--------------------------------------
12/31/15 Payments 3/29/16
--------------------------------------
Civil construction 6,394 (2,940 ) 3,454
Concessions 30,534 (2,199 ) 28,335
Airports 4,878 (165 ) 4,713
Corporate and Other 25,811 25,811
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Total 67,617 (5,304 ) 62,313
ICA's shareholding in OMA, direct and indirect, was reduced to 14.32% as of the
date of this report. ICA exercises control of OMA through its holding of 74.5%
of SETA, the strategic partner of OMA, which holds all OMA's Series BB shares.
Palmillas - Apaseo El Grande financing. ICA and CKD EXI signed an agreement by
means of which the EXICK trust granted a Ps. 750 million convertible loan to
provide the resources necessary for the completion of the Palmillas - Apaseo El
Grande tollroad project.
ICA's complete earnings report is available at http://ri.ica.mx.
Conference Call
ICA's 4Q15 earnings conference call will be held on Wednesday, March 30, at
5:00 pm Eastern Time (3:00 pm 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 81976558. 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 April 13, 2016 by calling toll-free (855)
859-2056 from the U.S. or +1 (404) 537-3406 internationally, again using
conference ID 81976558.
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 ir.ica.mx.
For more information, contact:
Gabriela Orozco
gabriela.orozco(at)ica.mx
Christianne Ibánez
christianne.ibanez(at)ica.mx
relacion.inversionistas(at)ica.mx
+(5255) 5272 9991 x 3012
Pablo García
pablo.garcia(at)ica.mx
Chief Financial Officer
In the United States:
Daniel Wilson, Zemi Communications
+(1212) 689 9560
dbmwilson(at)zemi.com
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Empresas ICA, S.A.B. de C.V. via GlobeNewswire
[HUG#1998499]
Datum: 30.03.2016 - 15:25 Uhr
Sprache: Deutsch
News-ID 460698
Anzahl Zeichen: 15534
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Kategorie:
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