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 (Loss) |
|
1,695 |
|
|
(10,284 |
) |
-- |
|
6,044 |
|
|
(6,359 |
) |
-- |
|
|
Consolidated Net (Loss) |
|
(1,826 |
) |
|
(10,510 |
) |
-- |
|
(2,086 |
) |
|
(13,833 |
) |
-- |
|
|
Net Loss of Controlling
Interest |
|
(2,082 |
) |
|
(10,591 |
) |
-- |
|
(3,024 |
) |
|
(14,511 |
) |
-- |
|
|
Adjusted EBITDA |
|
2,184 |
|
|
(9,873 |
) |
-- |
|
7,807 |
|
|
(4,371 |
) |
-- |
|
|
Operating Margin |
|
14.5 |
% |
|
-186.8 |
% |
|
|
15.3 |
% |
|
-19.1 |
% |
|
|
|
Adjusted EBITDA Margin |
|
18.8 |
% |
|
-179.4 |
% |
|
|
19.8 |
% |
|
-13.2 |
% |
|
|
|
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 |
|
|
|
Revenues: |
Reversal of costs and estimated earnings in excess of
billings |
447 |
447 |
|
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 |
|
Total |
|
11,069 |
11,389 |
|
By Segment |
|
|
|
|
Construction |
|
6,550 |
6,655 |
|
Concessions |
|
3,431 |
3,441 |
|
Corporate and Other |
|
1,088 |
1,292 |
|
Total |
|
11,069 |
11,389 |
|
|
|
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 |
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@ica.mx
Christianne Ibánez
christianne.ibanez@ica.mx
relacion.inversionistas@ica.mx
+(5255) 5272 9991 x 3012
Pablo García
pablo.garcia@ica.mx
Chief Financial Officer
In the United States:
Daniel Wilson, Zemi Communications
+(1212) 689 9560
dbmwilson@zemi.com
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that 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