Grupo Cementos de Chihuahua B de C : GCC Reports First Quarter 2020 Results

CHIHUAHUA, Mexico, April 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 first quarter 2020.

Q1 2020 HIGHLIGHTS

• U.S. cement and ready mix volumes increased 12.5% and 21.2% respectively
• Consolidated net sales increased 11%, to US$ 181.4 million
• EBITDA increased 18.4% to US$ 45.3 million, with a 25% EBITDA margin; a 1.6 percentage points point increase
• Free cash flow totaled US$ 11.1 million, with a conversion rate from EBITDA of 25%
• Net leverage (net debt/EBITDA) ratio stood at 1.12x as of March 2020
• Earnings per share increased 321.6% year-on-year, to US$ 0.0495

KEY FIGURES (millions of dollars)

	Q1-20	Q1-19	Q1-20 vs. Q1-19
Net sales	181.4	163.4	11.0%
Operating income before other expenses, net	20.6	11.0	87.3%
EBITDA*	45.3	38.3	18.4%
EBITDA margin	25.0%	23.4%
Free cash flow**	11.1	(22.4)	n.m.
Net income	16.5	3.9	321.7%
Earnings per share (US$)***	0.0495	0.0117	321.6%

*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 are undergoing an unprecedented health crisis that has impacted the global community and the economies across the world. In these challenging times, health and safety of our employees is our top priority, and we have reacted rapidly taking the necessary measures to protect the well-being of them and their families while mitigating the financial impacts in our business.

Both our divisions delivered strong results in the first quarter of the year, as the economic impacts of the pandemic weren’t fully realized until late in the quarter. All of our operations are running at a steady pace, but we do expect an impact on our results in the quarters ahead."

Mr. Escalante continued, “We are entering this crisis from a position of strength; we have built a strong a resilient business over the years, and while we cannot predict the length and severity of this pandemic, nor the impact in the overall macro environment, we have been through downturns before and we are confident that we will successfully navigate today’s challenges as we have done in the past.”

CONFERENCE CALL

Grupo Cementos de Chihuahua, S.A.B. de C.V. will host its earnings conference call on April 29, 2020. 

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

Conference ID: 9889937

Dial in:
U.S.:		1-888-204-4368 Toll Free
International:		1-323-994-2093
Replay (through May 6, 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.

For further information, contact:

GCC Investor Relations:

Ricardo Martinez

[phone]

+ 1 [phone]

[e-mail]

 

Source: Grupo Cementos de Chihuahua, S.A.B. de C.V.

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