GCC Reports Third Quarter 2020 Results

CHIHUAHUA, Mexico, Oct. 27, 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 third quarter 2020.

Q3 2020 HIGHLIGHTS

• Mexico cement volumes increased 8.1%
• Consolidated net sales decreased 6.8%, to US$281.1 million
• EBITDA increased 3.7% to US$99.9 million, with a 35.5% EBITDA margin; a 3.6 percentage points increase
• Free cash flow totaled US$104.2 million, with a 104% conversion rate from EBITDA
• Net leverage (net debt/EBITDA) ratio dropped to 0.61x as of September 2020
• Earnings per share increased 8.3% year-on-year, to US$0.1587
• A dividend of Ps. 0.94 per share was declared in the Annual Shareholders’ Meeting; 50% of it was paid on August 7, and the remaining dividend will be paid on January 11, 2021
  

KEY FIGURES (millions of dollars)

*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 had a steady EBITDA growth, a strong free cash flow generation & margin expansion, showing once again, the continued and successful execution of a comprehensive plan to reduce costs and expenses.

We experienced mixed demand for our products in most of our markets in Mexico and the U.S; however, both exceeding our expectations from the beginning of the COVID-19 pandemic.

Looking forward, our backlog remains encouraging, while overall macro conditions show mixed signs, and short-term uncertainty prevails, mainly COVID-19 outbreaks and weather. Therefore, our goal is to maintain our financial strength, keep people safe and employed, and to continue to serve GCC’s life blood - our invaluable customers.”

Mr. Escalante continued, “We delivered better than expected results, but we are not completely satisfied yet. We will continue looking intensely at efficiencies, costs and expenses; always focusing on liquidity and our people’s health as a top priority.”

CONFERENCE CALL

Grupo Cementos de Chihuahua, S.A.B. de C.V. will host its earnings conference call on October 28, 2020.

Time: 11 a.m. (Eastern Time) / 10 a.m. (Central Time) / 9 a.m. (Mountain Time)

Conference ID: 6171278

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.

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