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GCC Reports Third Quarter and Nine Month 2019 Results

CHIHUAHUA, Mexico, Oct. 22, 2019 (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 third quarter 2019.

Q3 2019 HIGHLIGHTS

  • U.S. cement volumes increased 9.8%; representing a record high for the Company
  • Consolidated Net Sales increased 8.3%, to US$ 301.7 million, primarily driven by increased cement volumes and improved pricing in both Mexico and the U.S.
  • Net sales rose 5.5% in Mexico and 9.1% in the U.S. due to volume and price increases
  • EBITDA increased 15.2%, to US$ 96.4 million, with a 31.9% EBITDA margin
  • Free cash flow increased 18.9%, to US$ 90.6 million with an approximate conversion rate from EBITDA of 94%
  • Net leverage (Net debt/EBITDA) ratio decreased from 1.86x in June 2019 to 1.52x as of September 2019
  • Earnings per share increased 13.8%, to US$ 0.1466 and 84.4% in the first nine months of 2019 as compared to the same period in 2018
  • A dividend of Ps. 0.8189 per outstanding share was paid on August 15, 2019, representing a 15% increase as compared to the dividend payment made in August 2018

KEY FIGURES (millions of dollars)

  Q3-19 Q3-18 Q3-19 vs.
Q3-18
9M-19 9M-18 9M-19 vs
9M-18
Net Sales 301.7   278.6   8.3 % 705.5   677.4   4.2 %
Operating Income before Other Expenses, net 69.7   64.3   8.4 % 123.2   140.7   -12.5 %
EBITDA* 96.4   83.7   15.2 % 205.6   198.6   3.5 %
EBITDA Margin 31.9 % 30.0 %   29.1 % 29.3 %  
Free Cash Flow** 90.6   76.2   18.9 % 53.3   63.6   -16.2 %
Net Income 48.8   42.8   13.9 % 77.8   42.2   84.4 %
Earnings per Share (US$)*** 0.1466   0.1288   13.8 % 0.2338   0.1268   84.4 %

* 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: “GCC delivered strong operational results for the third quarter 2019 despite an increasingly competitive environment in certain markets. Increased volumes, with a record high in cement, reflect robust customer demand and our ability to trigger the significant backlog at our U.S. operations with benefit of improved weather conditions in this market. Strengthened pricing in both the U.S. and Mexico- where cement volumes exceeded our expectations for the quarter- as well as excellent execution and an outstanding distribution network contributed to our solid results. We look forward to continued momentum in this regard, provided the promising weather holds.”

Mr. Escalante continued, “We therefore successfully overcame a difficult start to 2019 and are optimistic that we will continue this trajectory for the coming years.”

EARNINGS REPORT

GCC’s third 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 October 23, 2019. 

Time: 11:00 a.m. (Eastern Time) / 10:00 a.m. (Central Time) / 09:00 a.m. (Mountain Time)
Conference ID: 8447005
Dial in: U.S.:  1-888-394-8218 Toll Free
  International: 1-323-794-2588
Replay (through October 30, 2019, 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 5.8 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