DGAP-News: Empresas ICA Announces Unaudited Third Quarter 2011 Results

Empresas ICA, S.A.B. de C.V.

29.10.2011 01:14
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MEXICO CITY, 2011-10-29 01:13 CEST (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
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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
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The following are highlights of the third quarter:

— Total revenue grew 22% in 3Q11, led by Civil Construction and Concessions.
Four of the five business segments reported growth.
— 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.
— 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.
— 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.

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9 months
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Key Indicators 3Q10 3Q11 % Chg 2010 2011 % Chg
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Construction: Backlog 33,733 39,413 17 34,974 39,413 13
*
Concessions: Highway traffic, 11,688 16,667 43 11,494 16,502 44
ADTV
Airports: Passenger traffic 3,101 3,159 2 8,777 8,763 (0)
(thousands)
Housing: Units sold in Mexico 944 919 (3) 3,124 2,756 (12)
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* Balance at December 31, 2010

— 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.
— 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.
— 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.
— 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.
— 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-lookingstatements
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

Investor Relations:
Luz Montemayor
luz.montemayor@ica.com.mx

Iga Wolska
iga.wolska@ica.com.mx

relacion.inversionistas@ica.com.mx
(5255) 5272 9991 ext.3692

Victor Bravo, CFO
victor.bravo@ica.com.mx

In the United States:
Daniel Wilson, Zemi Communications
(1212) 689 9560
dbmwilson@zemi.com
News Source: NASDAQ OMX

29.10.2011 Dissemination of a Corporate News, transmitted by DGAP –
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Language: English
Company: Empresas ICA, S.A.B. de C.V.

Mexico
Phone:
Fax:
E-mail:
Internet:
ISIN: US2924482068
WKN:

End of Announcement DGAP News-Service

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