GRUPO SIMEC, S.A.B. DE C.V. GUADALAJARA, Mexico, April 25, 2016 /PRNewswire/ -- Grupo Simec, S.A.B. de C.V. (NYSE: SIM) ("Simec") announced today its results of operations for the three-month period ended March 31, 2016.
Comparative first quarter of 2016 vs. first quarter of 2015
Net Sales
The net sales of the company decreased 12% derived from the decrease in shipments of steel. Sales decreased from Ps. 6,897 million in the first quarter of 2015 to Ps. 6,102 million in the same period of 2016. Shipments of steel finished goods decreased 8% from 573 thousand tons in the first quarter of 2015 compared to 528 thousand tons in the same period of 2016. Total sales outside of Mexico in the first quarter of 2016 decreased 23% to reach Ps. 2,411 million compared to Ps. 3,146 million in the same period of 2015. The Mexican sales decreased 2% from Ps. 3,751 million in the first quarter of 2015 to Ps. 3,691 million in the same period of 2016. The decrease in sales can be explained due to a lower volume shipped compared with the same period of 2015. The average sales price per ton of steel finished goods decrease 4% in the first quarter of 2016 compared with the same period of 2015.
Cost of Sales
The cost of sales decreased 14% from Ps. 6,022 million in the first quarter of 2015 to Ps. 5,158 million in the same period of 2016. In the first quarter of 2016 the cost of sales represents the 85% of the net sales compared to 87% in the same period of 2015. The average cost of sales per ton of steel finished goods decreased 7% in the first quarter of 2016 compared to the same period of 2015.
Gross Profit
The gross profit of the company for the same period increased 8% from Ps. 875 million in 2015 to Ps. 944 million in the same period of 2016. Gross profit as a percentage of net sales in the first quarter of 2016 was 15% and for the same period of 2015 was 13%. The increase in gross profit is due to a better cost of the raw materials in the first quarter of 2016 compared with the same period of 2015.
General, Sales and administrative Expenses
General, selling and administrative expenses increased 24%, from Ps. 273 million in the first quarter of 2015 to Ps. 338 million in the same period of 2016, and representing 6% of net sales in the first quarter of 2016 and 4% to the same period of 2015.
Other Expenses (Income) net
The company recorded other expenses net of Ps. 3 million in the first quarter of 2016 compared to other income net of Ps. 3 million in the same period of 2015.
Operating Income
The operating income remained from Ps. 605 million for the first quarter of 2015 compared to Ps. 603 million in the same period of 2016. Operating income as a percentage of net sales was 10% in the first quarter of 2016 compared to 9% in the same period of 2015. The increase in operating income is due to a better cost of sales in the first quarter of 2016 compared with the same period of 2015.
EBITDA
The EBITDA of the company for the first quarter of 2016, show an increase of 1%, by the above mentioned to pass from Ps. 876 million in the first quarter of 2015 compared against Ps. 883 million of the first quarter of 2016.
Comprehensive Financial Cost
The Comprehensive financial cost in the first quarter of 2016 represented a net income of Ps. 269 million compared with an expense of Ps.19 million in the same period of 2015. Net interest was an income of Ps. 1 million in the first quarter of 2016 compared with a net expense of Ps. 4 million in the same period of 2015. At the same time, Simec registered an exchange income of Ps. 268 million in the first quarter of 2016 compared with an exchange income of Ps. 23 million in the same period of 2015.
Income Taxes
Income Taxes recorded an expense of Ps.17 million in the first quarter of 2016 (including the income of Ps. 25 million of deferred income taxes) compared to an expense of Ps. 267 million in the same period of 2015 (including the benefits of Ps. 8 million of deferred income taxes).
Net Income (loss) (Before Non- controlling Interest)
As a result of the foregoing, net income increased 134% to Ps. 1,032 million in the first quarter of 2016 from Ps. 441 million in the same period of previous year.
Liquidity and Capital Resources
As of March 31, 2016, Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998, or Ps. 5.2 million (accrued interest on March 31, 2016 was U.S. $621,707, or Ps. 10.7 million). As of March 31, 2015, Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998, or Ps. 4.6 million (accrued interest on March 31, 2015 was U.S. $537,766 or Ps. 8.2 million).
Comparative first quarter of 2016 vs. fourth quarter of 2015
Net Sales
The net sales of the company increased 10% comparing Ps. 5,545 million in the fourth quarter of 2015 to Ps. 6,102 million in the first quarter of 2016. The tons sales increased 16%, from 455 thousand tons in the fourth quarter of 2015 compared to 528 thousand tons in the first quarter of 2016. Total sales outside of Mexico in the first quarter of 2016 increased 22% from Ps. 1,977 million on the last quarter of 2015 compared to Ps. 2,411 million in the first quarter of 2016. The Mexican sales increased 3% from Ps. 3,568 million in the fourth quarter of 2015 to Ps. 3,691 million in the first quarter of 2016. The average sales price per ton decreased 5% in the first quarter of 2016 compared to the fourth quarter of 2015.
Cost of Sales
Cost of sales increased 5% from Ps. 4,894 million in the fourth quarter of 2015 to Ps. 5,158 million in the first quarter of 2016. Cost of sales as a percentage of net sales in the first quarter of 2016 represented 85% and in the last quarter of 2015 cost of sales represented 88%. The average cost of finished steel products in the first quarter of 2016 decreased 9% compared to the fourth quarter of 2015 as a result of an increased on the shipped volume and better cost of raw materials.
Gross Profit
Gross profit of the company for the first quarter increased to Ps. 944 million in 2016 from Ps. 651 million in the last quarter of 2015. Gross profit as a percentage of net sales in the first quarter of 2016 was 15% and for the last period of 2015 was 12%. The increase in gross profit is due to the rise on the production and volume of shipments and better cost of raw materials on the first quarter of 2016 compared with the last quarter of 2015.
General, Sales and administrative Expenses
General, selling and administrative expenses decreased 35% to Ps. 338 million in the first quarter of 2016 compared to Ps. 517 million in the fourth quarter of 2015, representing 6% of net sales in the first quarter of 2016 and for the last period of 2015 was 9%.
Other Expenses (Income) net
The company recorded other net expenses of Ps. 3 million in the first quarter of 2016 compared to other net expenses of Ps. 44 million in the fourth quarter of 2015.
Operating Income
Operating income increased 570% to Ps. 603 million for the first quarter of 2016 compared to Ps. 90 million in the last quarter of 2015. Operating income as a percentage of net sales was 10% in the first quarter of 2016, compared to 2% in the last quarter of 2015. The increase in operating income is due to the increase in production and volume of shipments, in the first quarter of 2016 compared with the fourth quarter of 2015.
EBITDA
The EBITDA of the company for the first quarter of 2016 was Ps. 883 million compared against Ps. 368 million of the last quarter of 2015, an increase of Ps. 515 million.
Comprehensive Financial Cost
Comprehensive financial cost in the first quarter of 2016 represented a net income of Ps. 269 million compared with an income of Ps. 105 million in the fourth quarter of 2015. Net interest income of the first quarter of 2016 was of Ps. 1 million compared with an interest net income of Ps. 1 million in the last quarter of 2015. At the same time, Simec registered an income on exchange rate of Ps. 268 million in the first quarter of 2016 compared with an income on exchange rate of Ps. 104 million on the last quarter of 2015.
Income Taxes
Income Taxes recorded an expense of Ps. 17 million in the first quarter of 2016 (including Ps. 25 million of deferred income taxes) compared with an income of Ps. 17 million in the same period of 2015 (including the benefits of Ps. 43 million of deferred income taxes).
Net Income (loss) (Before Non- controlling Interest)
As a result of the foregoing, the net income of the first quarter of 2016 is of Ps. 1,032 million compared with Ps. 340 million of the last period of previous year.
Quarter
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(millions of pesos) 1Q'16 1Q '15 4Q '15 1Q'16vs 1Q'16 vs
1Q'15 4Q '15
--- ----- ------
Sales 6,102 5,545 6,897 10% (12%)
----- ----- ----- ----- --- ----
Cost of Sales 5,158 4,894 6,022 5% (14%)
------------- ----- ----- ----- --- ----
Gross Profit 944 651 875 45% 8%
------------ --- --- --- --- ---
Selling, General and Adm. Expenses 338 517 273 (35%) 24%
---------------------------------- --- --- --- ---- ---
Other Income (Expenses), net (3) (44) 3 (93%) (200%)
---------------------------- --- --- --- ---- -----
Operating Profit 603 90 605 570% 0%
---------------- --- --- --- --- ---
EBITDA 883 368 876 140% 1%
------ --- --- --- --- ---
Net Income 1,032 340 441 204% 134%
---------- ----- --- --- --- ---
Sales Outside Mexico 2,411 1,977 3,146 22% (23%)
-------------------- ----- ----- ----- --- ----
Sales in Mexico 3,691 3,568 3,751 3% (2%)
--------------- ----- ----- ----- --- ---
Total Sales (Tons) 528 455 573 16% (8%)
----------------- --- --- --- --- ---
Cost per Ton 9,769 10,756 10,510 (9%) (7%)
------------ ----- ------ ------ --- ---
Product Thousands Million of Average Thousands Million of Average Thousands of Million of Average
of Tons Pesos Price per of Tons Pesos Price per Tons Pesos Price per
Jan-Mar 2016 Jan-Mar Ton Oct-Dec Ton Jan-Mar Jan-Mar Ton
2016 Oct-Dec 2015 Jan-Mar
Jan-Mar 2015 Oct-Dec 2015
2015 2015
2016 2015
--- ---- ----
Commercial 280 2,629 9,389 246 2,809 11,418 300 2,890 9,633
Profiles
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Special Profiles 248 3,473 14,004 209 2,736 13,090 273 4,007 14,678
---------------- --- ----- ------ --- ----- ------ --- ----- ------
Total 528 6,102 11,557 455 5,545 12,187 573 6,897 12,037
----- --- ----- ------ --- ----- ------ --- ----- ------
Any forward-looking information contained herein is inherently subject to various risks, uncertainties and assumptions which, if incorrect, may cause actual results to vary materially from those anticipated, expected or estimated. The company assumes no obligation to update any forward-looking information contained herein.
Contact: Sergio Vigil González
Mario Moreno Cortez
Grupo Simec, S.A.B. de C.V.
Calzada Lázaro Cárdenas 601
44440 Guadalajara, Jalisco, México
52-55-1165-1025
52-33-3770-6734
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SOURCE Grupo Simec, S.A.B. de C.V.
