GCC Reports Second Quarter 2020 Results
CHIHUAHUA, Mexico, July 28, 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 second quarter 2020.
Q2 2020 HIGHLIGHTS
- U.S. cement and ready-mix volumes increased 3.6% and 17.2%, respectively
- Consolidated net sales increased 1%, to US$242.8 million
- EBITDA increased 15.3% to US$81.8 million, with a 33.7% EBITDA margin; a 4.2 percentage points increase
- Free cash flow totaled US$35.1 million, with a 43% conversion rate from EBITDA
- Net leverage (net debt/EBITDA) ratio stood at 0.96x as of June 2020
- Earnings per share increased 32.7% year-on-year, to US$0.1001
- A dividend of Ps. 0.94 per share was declared in the Annual Shareholders’ Meeting; 50% of it will be paid on August 7
KEY FIGURES (millions of dollars)
| Q2 20 | Q2 19 | Q2 20 vs. Q2 19 |
H1 20 | H1 19 | H1 20 vs. H1 19 |
|
| Net sales | 242.8 | 240.5 | 1.0% | 424.2 | 403.9 | 5.0% |
| Operating income before other expenses, net | 58.3 | 42.5 | 37.3% | 78.9 | 53.5 | 47.6% |
| EBITDA* | 81.8 | 70.9 | 15.3% | 127.1 | 109.2 | 16.4% |
| EBITDA margin | 33.7% | 29.5% | 30.0% | 27.0% | ||
| Free cash flow** | 35.1 | (15.2) | n.m. | 47.0 | (36.4) | n.m. |
| Net income | 33.2 | 25.1 | 32.1% | 49.6 | 29.0 | 71.1% |
| Earnings per share (US$)*** | 0.1001 | 0.0754 | 32.7% | 0.1496 | 0.0872 | 71.5% |
*EBITDA: operating income before other expenses + depreciation and amortization
**Free cash flow before growth and strategic CapEx
***Earnings per share calculated based on average number of outstanding shares during the quarter
Enrique Escalante, GCC’s Chief Executive Officer, commented: “GCC delivered strong operational and solid bottom-line growth results for the second quarter of 2020 despite the challenges arising from the pandemic. Increased concrete and cement volumes in the U.S. demonstrate the construction industry´s tailwinds and resiliency on the back of improved weather conditions. EBITDA growth, free cash flow generation & margin expansion reflected the successful execution of a comprehensive plan to reduce costs and expenses.
Looking forward, our backlog remains strong in the U.S.; overall macro conditions are starting to deteriorate, and high levels of uncertainty prevail. Therefore, we expect additional challenges in the quarters ahead. We remain cautiously optimistic on further economic stimuli from the governments, including a sizable infrastructure bill.”
Mr. Escalante continued, “We are confident in our financial and operational strengths, as well as in the bold steps taken to navigate today´s challenges. I am convinced that, like in the past downturns, GCC will weather this storm and will emerge from it even stronger.”
CONFERENCE CALL
Grupo Cementos de Chihuahua, S.A.B. de C.V. will host its earnings conference call on July 29, 2020.
Time: 11 a.m. (Eastern Time) / 10 a.m. (Central Time) / 09 a.m. (Mountain Time)
Conference ID: 7208719
Dial in:
| U.S.: | 1-888-394-8218 Toll Free |
| International: | 1-323-794-2588 |
Replay (through August 5, 2020, 11:59 p.m.):
| 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 5.85 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 earnings report 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, legal, public health crises including COVID-19, 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; and 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. Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
For further information, contact:
| GCC Investor Relations: |
| Ricardo Martinez +52 (614) 442 3176 + 1 (303) 739 5943 rmartinezg@gcc.com |
