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Empresas ICA Announces Unaudited Second Quarter 2013 Results

Stocks in this article: ICA

MEXICO CITY, July 26, 2013 (GLOBE NEWSWIRE) -- Empresas ICA, S.A.B. de C.V. (BMV:ICA) (NYSE:ICA), the largest infrastructure and construction company in Mexico, announced today its unaudited results for the second quarter of 2013.

Summary for the Second Quarter

Significant revenue growth and margin contribution from the Concessions and Airports businesses underpinned ICA's results in the second quarter of 2013. These reflect the start of operation late last year of four new concessions and the continued growth of air passenger traffic. In addition, Construction revenue and margins rebounded significantly from first quarter levels, as several of ICA's new projects moved into the construction phase. At the same time, new contracts and contract additions increased construction backlog.

ICA announced two strategic transactions during the quarter, as part of our business model. The sale of the investment in the RCO tollroads and the sale of a portion of our shares in OMA generate more than Ps. 7,800 million in cash for ICA. The RCO transaction generated a net gain of Ps. 498 million in 2Q13 results. The OMA transaction will be recognized in the third quarter. The resources from these transactions increase ICA's financial flexibility, allowing us to reduce short-term debt and position us to take advantage of new infrastructure opportunities in Mexico and abroad.

The announcement of Mexico's Transportation and Communications Investment Program in mid-July as part of the National Infrastructure Plan provides greater visibility on the opportunities for new contracts. The increase in backlog also corroborates ICA's previously announced outlook for the year for both revenues and Adjusted EBITDA.

Consolidated Results       6 months
Ps. million 2Q12 2Q13 % Chg 2012 2013 % Chg
Revenues  9,460  8,208  (13)  18,968  15,117  (20)
Operating Income   821  1,919  134  1,638  2,514  53
Consolidated Net Income (Loss) 199 (345) (273) 1,185 (82) (107)
Net Income (Loss) of Controlling Interest  170 (501) (394) 991 (337) (134)
Adjusted EBITDA 1,480 2,234 51 2,886 3,344 16
Operating Margin 8.7% 23.4%   8.6% 16.6%  
Adjusted EBITDA Margin 15.6% 27.2%   15.2% 22.1%  
EPS (Ps.) 0.28 (0.82) (393) 1.64 (0.55) (134)
EPS ADS (US$) 0.08 (0.25) (400) 0.49 (0.17) (135)
  • Consolidated 2Q13 revenue was Ps. 8,208 million, a decrease of 13% from Ps. 9,460 million in 2Q12. Construction revenue decreased 30% as a result of the transition to new projects that are just getting underway, while Concessions and Airports revenues grew 109% and 15%, respectively.
  • The Adjusted EBITDA margin reached 27.2%, as a result of the start of operation of several concessioned projects in the Concessions segment, the gain on sale of RCO, and increased contribution from the Airports segment in the quarter. 
Key Indicators   Dec-12 Jun-13 % Chg
Construction: Backlog    32,734  37,087 13
Contracted Mining Services    8,166  6,221 (24)
  • Construction backlog as of June 30, 2013 was Ps. 37,087 million, 13% above the level as of December 31, 2012. ICA also has long-term mining and other service contracts for Ps. 6,221 million.  In addition, non-consolidated affiliates and joint ventures have Ps. 9,630 million in construction backlog.
  • Comprehensive financing cost was Ps. 2,461 million in 2Q13 as a result of an exchange loss of Ps. 1,254 million as a result of the depreciation of the peso, a higher level of debt to finance projects, and the fact that interest expenses for concessioned projects that enter into operation are no longer capitalized.
  • Consolidated net loss was Ps. 345 million, and net loss of the controlling interest was Ps. 501 million. The net losses were principally the result of the exchange loss mentioned above.
Key Indicators 2Q12 2Q13 % Chg 2012 2013 % Chg
Concessions: Highway traffic, ADTV  17,866  30,840 73  17,889  27,564 54
Airports: Passenger traffic (thousands)  3,038  3,208 6  5,934  6,238 5
  • Construction contributed 66% of consolidated revenue and 17% of Adjusted EBITDA in 2Q13.
  • Concessions contributed 25% of consolidated revenue and 65% of Adjusted EBITDA in 2Q13.
  • As of June 30, 2012, ICA's Concessions segment was participating in 18 projects, including ten highways, five water projects, two social infrastructure projects, and one port. Of these, eleven were in full operation, and seven under construction.
  • Airports contributed 10% of consolidated revenue and 17% of Adjusted EBITDA in 2Q13.

The complete earnings report is available at

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