OREANDA-NEWS. May 27, 2016. Empresas ICA, S.A.B. de C.V. (BMV:ICA) (NYSE:ICA) announced today its unaudited results for the first quarter of 2016, which have been prepared in accordance with International Financial Reporting Standards. During the fourth quarter of 2015, 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 Mart?n, effective October 1, 2015, as a result of the reduction in ICA’s shareholding to 31.2% from 51%.

Financial and Operating Results

First quarter consolidated net revenues decreased 36% to Ps. 6,108 million from Ps. 9,501 million in 1Q15. This reduction was principally the result of lower volumes of construction work on various projects and the deconsolidation of San Mart?n effective 4Q15. Revenues of the Construction segment decreased to Ps. 3,062 million in 1Q16 from Ps. 6,053 million in 1Q15.

The consolidated net loss was Ps. 1,101 million in 1Q16. The net loss was principally the result of the reduction in Construction segment revenues and comprehensive financing cost. Loss per share was Ps. 2.23 (US\\$ 0.51 per ADS).

The gain on sale of OMA Series B shares was recorded as a direct credit to equity, and did not pass through the income statement.  This gain offset the consolidated net loss, and stockholders’ equity increased by Ps. 3,519 million compared to December 31, 2015.

     
 Consolidated Results   
 Ps. million1Q151Q16% Chg
 Revenues 9,501  6,108  (36)
 Operating Income 1,570  978  (38)
 Consolidated Net (Loss) (708) (1,101) (55)
 Net Loss of Controlling Interest  (846) (1,370) (62)
 Adjusted EBITDA 2,091  1,379  (34)
 Operating Margin 16.5% 16.0% 
 Adjusted EBITDA Margin 22.0% 22.6% 
 EPS (Ps.) (1.38) (2.23)--
 EPADS (US\\$) (0.36) (0.51)--
         

Liquidity and Debt

Total consolidated debt decreased 8% to Ps. 62,498 million as of March 31, 2016, as compared to December 31, 2015.  The decrease was principally the result of loan payments to Santander, Deutsche Bank, Barclays, and Value that were secured by the pledge of OMA B shares, payment of a working capital line to BBVA Bancomer, and scheduled amortizations of debt of operating projects.

Total cash was Ps. 8,298 million as of March 31, 2016. 

Comprehensive backlog

Comprehensive backlog, including ICA’s share of backlog of unconsolidated affiliates and joint ventures, reached Ps. 60,757 million as of March 31, 2016, a decrease of Ps. 3,786 million compared to December 31, 2015.  Consolidated backlog was Ps. 31,129 million, down Ps. 1,251 million from year-end. Total backlog of non-consolidated affiliates and joint ventures (principally at ICA Fluor) decreased Ps. 3,112 million to Ps. 62,254 million.

Reduction in Costs and Expenses

During the fourth quarter of 2015, ICA entered into a process of operational restructuring, in order to reduce costs and expenses.  Through April 30, 2016, the workforce had decreased 35% from the levels as of December 2015, and 51% as compared to December 2014. Independently of other efforts to reduce costs, payroll costs have decreased by 35% and 43%, compared to the levels at the end of 2015 and 2014, respectively.

Restructuring Activities

ICA is currently focused on the definition of a financial restructuring plan.  We continue to work with our advisors, Rothschild M?xico and FTI Consulting, to complete this plan.  

ICA’s full earnings report is available on the investor relations page of www.ica.mx.  

This press release contains projections or other forward-looking statements related to ICA that reflect ICA’s current expectations or beliefs concerning future events. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include cancellations of significant construction projects included in backlog, material changes in the performance or terms of our concessions, additional costs incurred in projects under construction, failure to comply with covenants contained in our debt agreements, developments in legal proceedings, unanticipated increases in financing and other costs or the inability to obtain additional debt or equity financing on attractive terms, changes to our liquidity, economic and political conditions and government policies in Mexico or elsewhere, changes in capital markets in general that may affect policies or attitudes towards lending to Mexico or Mexican companies, changes in inflation rates, exchange rates, regulatory developments, customer demand, competition and tax and other laws affecting ICA’s businesses 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. 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.