CHIHUAHUA, Mexico, Feb. 20, 2020 (GLOBE NEWSWIRE) -- Grupo Cementos de Chihuahua, S.A.B. de C.V. (BMV: GCC*), a leading supplier and producer of cement and concrete in the United States, Mexico and Canada, today announced its results for the fourth quarter and full year 2019.

Q4 2019 HIGHLIGHTS

• U.S. cement volumes increased 12.3%; a record high fourth quarter for the Company
• Consolidated net sales increased 11%, to US$ 228.6 million
• EBITDA increased 49.6%, to US$ 86.4 million, with a 37.8% EBITDA margin; a 974 basis point increase
• Free cash flow increased 87.6% to US$ 82.5 million, with a conversion rate from EBITDA of 95%
• Net leverage (net debt/EBITDA) ratio decreased from 1.52x in September 2019 to 1.11x as of December 2019
• Earnings per share increased 71.6% year-on-year, to US$ 0.1180

FY 2019 HIGHLIGHTS

• 2019 consolidated net sales increased 5.8%, to US$ 934.1 million
• EBITDA increased 13.9% to US$ 292 million. EBITDA margin expanded 230 basis points to 31.3%
• Free cash flow was US$ 137 million; a 47% conversion rate from EBITDA
• 2019 earnings per share increased 79.9% year-on-year, to US$ 0.3518
• Fitch Ratings upgraded GCC’s credit rating to ‘BB+’ from ‘BB’ with a stable outlook
• GCC's Corporate Technical and Operations Office (CTOO) began operation with the goal of supporting the Company's growth strategy, strengthening operations and supporting GCC's continued expansion
• New cement terminal opened in Fort Stockton, Texas
• A dividend of Ps. 0.8189 per outstanding share was paid on August 15, 2019, representing a 15% year-on-year increase
• Two long-term agreements were signed with renewable energy suppliers covering approximately 20% and 100% of the electricity consumed at Mexico´s operations and Odessa´s cement plant, respectively             

KEY FIGURES (millions of dollars)

	Q4-19		Q4-18		Q4-19 vs. Q4-18		2019		2018		2019 vs. 2018
Net Sales	228.6		205.9		11.0	%	934.1		883.2		5.8	%
Operating Income before Other Expenses, net	60.4		29.1		107.6	%	183.6		169.8		8.1	%
EBITDA*	86.4		57.7		49.6	%	292.0		256.4		13.9	%
EBITDA Margin	37.8	%	28.1	%			31.3	%	29.0	%
Free Cash Flow**	82.5		44.0		87.6	%	137.0		106.4		28.8	%
Net Income	39.3		22.9		71.7	%	117.0		65.0		79.9	%
Earnings per Share (US$)***	0.1180		0.0688		71.6	%	0.3518		0.1956		79.9	%

* EBITDA: operating income before other expenses + depreciation and amortization. 
** Free Cash flow before expansion CapEx
*** Earnings per share calculated based on average number of outstanding shares during the quarter

Enrique Escalante, GCC’s Chief Executive Officer, commented: “We closed 2019 delivering strong results despite the challenges we faced during the first half of the year. Our strong operational capabilities coupled with our robust and unique distribution network enabled us to quarterly record high cement volumes in the U.S, exceeding our annual guidance, on the back of improved weather conditions. Mexico, which performed above our expectations, both in volumes and prices, also contributed to these strong results.

During the year we also made significant progress in our sustainability efforts by implementing best practices to mitigate impacts on our environment and on the communities we serve, further strengthening our Company’s long term strategy.”

Mr. Escalante continued, “Looking ahead, the underlying trends of our business remain strong and we expect positive momentum to continue in 2020, while the US economy continues to show solid economic fundamentals, we are cautiously optimistic about Mexico on the back of macroeconomic conditions and an increasing competitive environment.”

OUTLOOK FOR 2020

United States
Volumes		Cement			1% - 3%
		Concrete
Prices (US$)
		Cement			3% - 5%
		Concrete			2% - 4%
Mexico
Volumes		Cement			1% - 3%
		Concrete
Prices (Ps.)		Cement			2% - 4%
		Concrete			3% - 4%
Consolidated
EBITDA Growth					6% - 9%
FCF Conversion Rate*					> 50%
Total CapEx						US$  70 million
				Maintenance	$60
			2019 carry- over		$10
Net Debt / EBITDA, year-end					~0.5x

EARNINGS REPORT

GCC’s fourth quarter 2019 earnings report is available at www.gcc.com, on the Investor Relations section.

CONFERENCE CALL

Grupo Cementos de Chihuahua, S.A.B. de C.V. will host its earnings conference call on February 21, 2020. 

Time: 11:00 a.m. (Eastern Time) / 10:00 a.m. (Central Time) / 09:00 a.m. (Mountain Time)

Conference ID: 4614937
Dial in:
	U.S.:		1-800-458-4148 Toll Free
	International:		1-323-794-2093
Replay (through February 28, 2020, 11:59 p.m. E.T.):
	U.S.:		1-844-512-2921 Toll Free
	International:		1-412-317-6671

Listen-only webcast and replay: click here.

ABOUT GCC

GCC is a leading supplier and producer of cement, concrete, aggregates and construction‐related services in the United States, Mexico and Canada, with an annual cement production capacity of 5.8 million metric tons.

Founded in 1941, the Company’s shares are listed on the Mexican Stock Exchange under the ticker symbol GCC*.

Forward Looking Statements

This press release may contain forward-looking statements. All statements that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “expect,” “estimate,” “intend,” “project” and similar expressions are generally intended to identify forward-looking statements. These statements are subject to risks and uncertainties including, among others, changes in macroeconomic, political, governmental or business conditions in the markets where GCC operates; changes in interest rates, inflation rates and currency exchange rates; performance of the construction industry; pricing, business strategy, and other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ materially from the beliefs, projections, and estimates described herein. GCC assumes no obligation to update the information contained in this press release.

For further information, contact:

GCC Investor Relations:

Ricardo Martinez +52 (614) 442 3176 + 1 (303) 739 5943 rmartinezg@gcc.com