GCC Reports Fourth Quarter and Full Year 2019 Audited Results

CHIHUAHUA, Mexico, May 13, 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 audited 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 70.4% year-on-year, to US$ 0.1171

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 79.5% year-on-year, to US$ 0.3510
• 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)

* 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

EARNINGS REPORT

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

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 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.

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