CHIHUAHUA, Mexico, April 27, 2021 (GLOBE NEWSWIRE) -- GCC, 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 2021.
Q1 2021 HIGHLIGHTS
- Mexico cement and ready-mix volumes increased 6% and 8%, respectively
- U.S cement volumes grew 5.9%, excluding oil well cement. Total cement volumes decreased 7.7%
- Consolidated net sales decreased 1.5%, to US$178.8 million
- EBITDA increased 9.2% to US$49.5 million, with a 27.7% EBITDA margin; a 270 basis-point increase
- Free cash flow increased 59% to US$17.7 million with a 35.8% conversion rate from EBITDA
- Net leverage (net debt/EBITDA) ratio dropped to 0.22x as of March 2021
- Earnings per share decreased 6.6% year on year, to US$0.0463
- GCC received investment grade ratings from Fitch Ratings and S&P Global Ratings. Credit rating was raised to BBB- with a stable outlook
- Official corporate name was changed from Grupo Cementos de Chihuahua to GCC
KEY FIGURES (millions of dollars)
| Q1 21 | Q1 20 | Q1 21 vs. Q1 20 | ||||
| Net sales | 178.8 | 181.4 | -1.5 | % | ||
| Operating income before other expenses, net | 25.5 | 20.6 | 23.7 | % | ||
| EBITDA* | 49.5 | 45.3 | 9.2 | % | ||
| EBITDA margin | 27.7 | % | 25.0 | % | ||
| Free cash flow** | 17.7 | 11.1 | 58.9 | % | ||
| Net income | 15.3 | 16.5 | -6.9 | % | ||
| Earnings per share (US$) *** | 0.0463 | 0.0495 | -6.6 | % | ||
*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, said “GCC started 2021 with strong financial performance - increasing EBITDA, free cash flow and EBITDA margin. Our results reflect momentum in the industry and show early signs that we are entering into a new phase of the industry´s cycle with a stronger demand for most of our products. Therefore, we will focus our efforts in producing cement to supply pent-up demand.”
Mr. Escalante continued, “Our backlog and the overall market trends of our business are encouraging in the U.S. and Mexico. Both countries are emerging from tough and uncertain times into brighter months ahead. Our focus continues on maximizing production, improving plant reliability, and optimizing our logistics network to take advantage of the pent-up demand we are experiencing.”
CONFERENCE CALL
GCC, S.A.B. de C.V. will host its earnings conference call on April 28, 2021.
Time: 11 a.m. (Eastern Time) / 10 a.m. (Central Time) / 9 a.m. (Mountain Time)
Conference ID: 13714203
| Dial in | ||
| U.S. (toll free): | 1-877-407-0789 | |
| International: | 1-201-689-8562 | |
| Replay (through May 5, 2021, 11:59 p.m.): | ||
| U.S. (toll free): | 1-844-512-2921 | |
| 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. The Company has 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