(MENAFN- GlobeNewsWire - Nasdaq) CHIHUAHUA, Mexico, Jan. 31, 2023 (GLOBE NEWSWIRE) -- GCC, S.A.B. de C.V. (BMV: GCC*), a leading supplier and producer of cement and concrete in the United States and Mexico, today announced its results for the fourth quarter and full year of 2022.
FY 2022 HIGHLIGHTS
Consolidated net sales increased 12.6%, to US$1,169.5 million for the full year U.S. sales grew 12% as cement and concrete volumes increased 2.9% and 3.1%, respectively U.S. cement and concrete prices rose 12.1% and 4.4%, respectively Mexico sales increased 14% reflecting an 8.6% increase in concrete volumes Mexico cement and concrete prices increased by 12.5% and 8.7%, respectively EBITDA increased 7.4% to US$362.7 million with a 31% EBITDA margin Free cash flow increased 16.8% to US$284.7 million with a 78.5% free cash flow conversion rate Earnings per share increased 23.7% year-on-year to US$0.5670 Cash and equivalents totaled US$832.1 million Net leverage (net debt/EBITDA) ratio dropped to -0.95x by year-end A dividend of Ps. 1.1621 per share was paid on May 17, 2022, representing a 15% year-on-year increase GCC reactivated its share buyback program representing a net investment of US$26.4 million Fitch Ratings upgraded GCC's outlook to positive from stable and affirmed the Company's BBB- credit rating GCC announced its Odessa plant expansion, enabling increased production capacity exceeding one million metric tons
Q4 2022 HIGHLIGHTS
Consolidated net sales increased 12.3% year-on-year, to US$289.7 million U.S. sales expanded 8% as cement and concrete prices increased by 16.2% and 12.5%, respectively Mexico sales grew 23% reflecting a 10% increase in concrete volumes Mexico cement and concrete prices increased by 12.5% and 10.2%, respectively EBITDA increased 12.7% to US$91.3 million with a 31.5% EBITDA margin Free cash flow totaled US$115.1 million with a 126% free cash flow conversion rate Earnings per share increased 71.7% year-on-year to US$0.1562 GCC completed a net amount of US$5.9 million in repurchased shares
KEY FIGURES (millions of dollars)
| | Q4 22 | Q4 21 | Q4 22 vs Q4 21 | 2022 | 2021 | 2022 vs 2021 |
| Net sales | 289.7 | 257.9 | 12.3% | 1,169.5 | 1,038.8 | 12.6% |
| Operating income before other expenses, net | 69.3 | 57.2 | 21.1% | 269.5 | 241.1 | 11.8% |
| EBITDA* | 91.3 | 81.0 | 12.7% | 362.7 | 337.7 | 7.4% |
| EBITDA margin | 31.5% | 31.4% | | 31.0% | 32.5% | |
| Free cash flow** | 115.1 | 88.8 | 29.6% | 284.7 | 243.7 | 16.8% |
| Net income | 51.3 | 30.1 | 70.2% | 187.1 | 151.9 | 23.2% |
| Earnings per share (US$) *** | 0.1562 | 0.0910 | 71.7% | 0.5670 | 0.4583 | 23.7% |
*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's focus on operational excellence enabled us to deliver strong results in an unprecedented market environment. We continue to anticipate challenges, mitigating their potential effects while also capitalizing on important opportunities. Our team will continue to adapt to the evolving operating dynamics in the year ahead, as these will present further occasions for us to again leverage our exceptional competitive advantages.”
To access the earnings release: click here
CONFERENCE CALL
GCC, S.A.B. de C.V. will host its earnings conference call on February 1, 2023.
Time: 10 a.m. (Eastern Time) / 9 a.m. (Central Time) / 8 a.m. (Mountain Time)
Conference ID: 13735118
Dial in
U.S. (toll free): 1-877-407-0789
International: 1-201-689-8562
Replay (through February 8, 2023, 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.