GRUPO SIMEC, S.A.B. DE C.V. GUADALAJARA, Mexico, May 4, 2017 /PRNewswire/ -- Grupo Simec, S.A.B. de C.V. (NYSE: SIM) ("Simec") announced today its results of operations for the twelve-month period ended December 31, 2016 and December 31, 2015.
Twelve-Month Period Ended December 31, 2016 compared to Twelve-Month Period Ended December 31, 2015
Net Sales
Net sales increased 12% by the combination of higher shipments of finished steel products by 3% and a higher average sales price compared the same period of 2015, the sales increased from Ps. 24,476 million in the twelve-month period ended December 31, 2015 to Ps. 27,516 million in the same period of 2016. Shipments of finished steel products increase 3% to 2 million 085 thousand tons in the twelve-month period ended December 31, 2016 compared to 2 million 026 thousand tons in the same period of 2015. Total sales outside of Mexico on the twelve-month period ended December 31, 2016 increased to Ps. 11,900 million compared with Ps. 10,369 million in the same period of 2015. Total sales in Mexico increased 11% from Ps. 14,107 million in the twelve-month period ended December 31, 2015 to Ps. 15,616 million in the same period of 2016. The increase in sales is due to higher shipments of finished steel products by 3% and a higher average sales price, as well as an sale operation Ps.1,878 million in 2016.
Cost of Sales
Cost of sales decreased 10% from Ps. 25,169 million in the twelve-month period ended December 31, 2015 to Ps. 22,776 million in the same period of 2016. Cost of sales as a percentage of net sales in twelve months ended on December 31 of 2016 represented 83% and 103% in the same period of 2015. The average cost of finished steel produced in the twelve-month period ended December 31, 2016 compared to the same period of 2015 decreased 12% due to lower costs of some supplies at year end.
Gross Profit
Gross profit of the Company in the twelve-month period ended December 31, 2016 was of Ps. 4,740 million compared to Ps. -693 million in the same period of 2015. Gross profit as a percentage of net sales represented 17% in the twelve-month period ended December 31, 2016 and -3% in the same period of 2015. The increase in the gross profit is due to lower cost of supplies on 2016, compared with the same period of 2015.
Operating Expenses
Selling, general and administrative expenses decreased 11% from Ps. 1,428 million in the twelve-month period ended December 31, 2015 to Ps. 1,277 million in the same period of 2016. Selling, general and administrative expenses as a percentage of net sales represented 6% during the twelve-month period ended December 31, 2015 and 5% in the same period of 2016.
Other Expenses (Income) net
The company recorded other income of Ps. 19 million in the twelve-month period ended December 31, 2015 compared to other net income of Ps. 36 million in the same period of 2016.
Operating Income
Operating income increased 263% from Ps. -2,102 million for the twelve-month period ended December 31, 2015 to Ps. 3,427 million in the same period of 2016. Operating income as a percentage of net sales represented -9% during the twelve-month period ended December 31, 2015 and 12% in the same period of 2016.
EBITDA
The EBITDA of the Company increased 677% from Ps. -841 million in the twelve-month prior ended December 31, of 2015, as a result a net loss of Ps. -3,261 plus income taxes of Ps. 771 less comprehensive financial cost of Ps. -388 plus depreciation of Ps. 1261 to Ps. 4,856 million in the same period of 2016 generating a net income of Ps. 4,343 plus income taxes of Ps. 926 less comprehensive financial cost of Ps. 1,843 plus depreciation of 1,430.
Comprehensive Financial Cost
Comprehensive financial cost in the twelve-month period ended December 31, 2016 represented a net income of Ps. 1,843 million compared with a net expense of Ps. 388 million in the same period of 2015. The net interest was an income of Ps. 68 million in 2016 compared with a net interest expense of Ps. 6 million in the twelve-month period ended December 31, 2015. As a result, we registered a net exchange income of Ps. 1,775 million in the twelve-month period ended December 31, 2016 compared with a net exchange loss of Ps. 382 million in the same period of 2015, reflecting a 19% decrease in the value of the peso versus the dollar in the twelve-month period ended December 31, 2016 compared to December 31, 2015.
Income Taxes
The Company have recorded an expense net tax of Ps. 926 million in the twelve-month period ended December 31, 2016 (including the income of deferred income tax of Ps. 869 million) compared with a net expense tax of Ps. 771 million in the same period of 2015 (including the tax deferred income of Ps. 827 million).
Net Income (loss) (After Minority Interest)
As a result of the foregoing, net income increased by 233% from Ps. -3,261 million in the twelve-month period ended December 31, 2015 to a net income of Ps. 4,343 million in the same period of 2016.
Liquidity and Capital Resources
As of December 31, 2016, Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998, Ps. 6.2 million (accrued interest on December 31, 2016 was U.S. $612,805 or Ps. 12.7 million). As of December 31, 2015, Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998, Ps. 5.2 million (accrued interest on December 31, 2015 was U.S. $614,425, or Ps. 10.7 million).
Comparative fourth quarter 2016 vs third quarter 2016
Net Sales
Net sales increased 20% from Ps. 6,671 million in the third quarter of 2016 to Ps. 8,001 million for the fourth quarter of 2016. Sales in tons decreased from 529 thousand ton in the third quarter of 2016 to 429 thousand ton in the fourth quarter of the same period, a decrease of 19%. Total sales outside of Mexico for the fourth quarter of 2016 increased 80% from Ps. 2,017 million in the third quarter to Ps. 3,634 million in the four quarter of 2016. Sales in Mexico decreased to Ps. 4,367 million in the fourth quarter of 2016 compared Ps. 4,654 million in the third quarter of 2016 a decrease of 6%. Prices of finished products sold in the fourth quarter of 2016 increased 13% compared with the third quarter of the same period, as well as an sale materials operation Ps.1,878 million in the fourth quarter of 2016.
Cost of Sales
Cost of sales increased to Ps. 6,881 million in the fourth quarter of 2016 compared to Ps. 5,435 million for the third quarter of 2016. With respect to sales, in the fourth quarter of 2016, the cost of sales represented 86% and third quarter represented 81%. The average cost of sales by ton increased 56% in the fourth quarter of 2016 versus the third quarter of 2016.
Gross Profit
Gross profit of the Company for the fourth quarter of 2016 decreased 9% to Ps. 1,120 million compared to Ps. 1,236 million in the third quarter of 2016. The gross profit as a percentage of net sales for the fourth and third quarter of 2016 was of 19% and 14% respectively.
Operating Expenses
Selling, general and administrative expenses increased 9% to Ps. 344 million in the fourth quarter of 2016 compared to Ps. 317 million for the third quarter of 2016. Selling, general and administrative expenses as a percentage of net sales represented 4% during the fourth quarter of 2016 and 5% for the third quarter of 2016.
Other Expenses (Income) net
The company recorded other net expense of Ps. 237 million in the fourth quarter of 2016 compared to other net income of Ps. 69 million for the third quarter of 2016.
Operating (Loss) Income
Operating income was of Ps. 539 million in the fourth quarter of 2016 compared to an operating income of Ps. 988 million in the third quarter of 2016. The operating income as a percentage of net sales in the fourth quarter of 2016 represented 10% while the operating income for the third quarter of 2016 represented 14%.
EBITDA
The EBITDA was Ps. 1,321 million in the third quarter of 2016 as a result a net income of Ps. 1,452 plus income taxes of Ps. -58 less comprehensive financial cost of Ps. 407 plus depreciation of Ps. 334 compared to Ps. 1,067 million for the fourth quarter of 2016, as a result a net income of Ps. 183 plus income taxes of Ps. 989 less comprehensive financial cost of Ps. 632 plus depreciation of 527.
Comprehensive Financial Income (Cost)
Comprehensive financial cost for the fourth quarter for 2016 was a net income of Ps. 632 million compared with a net income of Ps. 407 million for the third quarter of 2016. The net interest income in the fourth quarter was Ps. 13 million compared to Ps. 44 million in the third quarter of 2016. At the same time we registered an exchange net gain of Ps. 363 million in the third quarter of 2016 compared with an exchange net gain of Ps. 619 million in the fourth quarter of 2016.
Income Taxes
Income Taxes for the fourth quarter of 2016 had an expense net tax of Ps. 989 million (including an expense tax deferred for Ps. 959 million) compared to an income of Ps. 58 million for the third quarter of 2016, (including an income tax deferred of Ps. 25 million).
Net Income (loss) (After Minority Interest)
As a result of the foregoing, the Company had a net income of Ps. 183 million in the fourth quarter of 2016 compared to Ps. 1,452 million of net income in the third quarter of 2016.
Comparative fourth quarter 2016 vs fourth quarter 2015
Net Sales
Net sales increased 62% from Ps. 4,925 million for the fourth quarter of 2015 to Ps. 8,001 million for the fourth quarter of 2016. Sales in tons of finished steel in the fourth quarter of 2015 were 358 thousand tons versus to 429 thousand tons in the fourth quarter of 2016. Total sales outside of Mexico increase 84% from Ps. 1,978 million for the fourth quarter of 2015 to Ps. 3,634 million in the fourth quarter of 2016. Sales in Mexico increased 48% from Ps. 2,947 million in the fourth quarter of 2015 to Ps. 4,367 million in the fourth quarter of 2016. The average sales prices of finished products sold in the fourth quarter of 2016 increased 4%, compared to the same period of 2015, as well as an sale materials operation Ps.1,878 million in the fourth quarter of 2016.
Cost of Sales
Cost of sales decreased 15% from Ps. 8,106 million in the fourth quarter of 2015 compared to Ps. 6,881 million for the fourth quarter of 2016. With respect to sales, the cost of sales represented 86% during the fourth quarter of 2016 and 165% during the fourth quarter of 2015. The average cost of steel products decreased 29% in the fourth quarter of 2016 versus the fourth quarter of 2015.
Gross Profit
Gross profit for the fourth quarter of 2016 increased 135% from Ps. -3,181 million in the fourth quarter of 2015 compared to Ps. 1,120 million in the fourth quarter of 2016. The gross profit as a percentage of net sales represented 14% during the fourth quarter of 2016 and -65% during the fourth quarter of 2015.
Operating Expenses
Selling, general and administrative expenses decreased 25% from Ps. 458 million in the fourth quarter of 2015 compared to Ps. 344 million for the fourth quarter of 2016. Selling, general and administrative expenses as a percentage of net sales represented 4% during the fourth quarter of 2016 and 9% during the fourth quarter of 2015.
Other Expenses (Income) net
The company recorded other expenses net of Ps. 83 million in the fourth quarter of 2015 compared with other expenses net of Ps. 237 million for the fourth quarter of 2016.
Operating (Loss) Income
Operating income was of Ps. 539 million in the fourth quarter of 2016 compared to an operating loss of Ps. 3,722 million in the fourth quarter of 2015. The operating income as a percentage of net sales in the fourth quarter of 2016 was 10%, compared to an operating loss of -76% in the fourth quarter of 2015.
EBITDA
The EBITDA from the fourth quarter of 2016 increased 132% from a loss of Ps 3,306 million in the fourth quarter of 2015, as a result a net loss of Ps. 3,581 plus income taxes of Ps. -489 less comprehensive financial cost of Ps. 348 plus depreciation of Ps. 416 compared to a profit of Ps 1,067 million in the fourth quarter of 2016 as a result a net income of Ps. 183 plus income taxes of Ps. 989 less comprehensive financial cost of Ps. 632 plus depreciation of 527.
Comprehensive Financial Income (Cost)
Comprehensive financial cost for the fourth quarter of 2016 was a net income of Ps. 632 million compared with a net expense of Ps 348 million in the fourth quarter of 2015. Net interest income was of Ps. 13 million in the fourth quarter of 2016 compared with a net interest expense of Ps. 10 million in the fourth quarter of 2015. At the same time we registered a net exchange income of Ps. 619 million in the fourth quarter of 2016 compared with an exchange loss of Ps. 338 million in the fourth quarter of 2015.
Income Taxes
The Company recorded an expense net taxes for the fourth quarter of 2016 of Ps. 989 million (including an expense of deferred tax of Ps. 959 million), compared to an income taxes of Ps. 489 million for the fourth quarter of 2015, (including an income tax deferred of Ps. 665 million).
Net Income (loss) (After Minority Interest)
As a result of the foregoing, the Company recorded a net income of Ps. 183 million in the fourth quarter of 2016 compared to Ps. 3,581 million of net loss in the fourth quarter of 2015.
(million of pesos) Jan - Dec '16 Jan - Dec '15 Year 16 vs
'15
--- ---
Sales 27,516 24,476 12%
----- ------ ------ ---
Cost of Sales 22,776 25,169 (10%)
------------- ------ ------ ----
Gross Profit 4,740 -693 784%
------------ ----- ---- ---
Selling, General and Administrative Expense 1,277 1,428 (11%)
------------------------------------------- ----- ----- ----
Other Income (Expenses), net -36 19 (289%)
---------------------------- --- --- -----
Operating Profit 3,427 -2,102 263%
---------------- ----- ------ ---
EBITDA 4,856 -841 677%
------ ----- ---- ---
Net income 4,343 -3,261 233%
---------- ----- ------ ---
Sales Outside Mexico 11,900 10,369 15%
-------------------- ------ ------ ---
Sales in Mexico 15,616 14,107 11%
--------------- ------ ------ ---
Total Sales (Tons) 2,085 2,026 3%
----------------- ----- ----- ---
Cost by ton 10,924 12,423 (12%)
----------- ------ ------ ----
Quarter
-------
(million of pesos) 4Q'16 3Q '16 4Q '15 4Q´16 vs 4Q´16 vs
3Q´16 4Q '15
--- ----- ------
Sales 8,001 6,671 4,925 20% 62%
----- ----- ----- ----- --- ---
Cost of Sales 6,881 5,435 8,106 27% (15%)
------------- ----- ----- ----- --- ----
Gross Profit 1,120 1,236 -3,181 (9%) 135%
------------ ----- ----- ------ --- ---
Selling, General and Adm. Expenses 344 317 458 9% (25%)
---------------------------------- --- --- --- --- ----
Other Income (Expenses), net -237 69 -83 (443%) (186%)
---------------------------- ---- --- --- ----- -----
Operating Profit 539 988 -3,722 (45%) 114%
---------------- --- --- ------ ---- ---
EBITDA 1,067 1,321 -3,306 (19%) 132%
------ ----- ----- ------ ---- ---
Net Income 183 1,452 -3,581 (87%) 105%
---------- --- ----- ------ ---- ---
Sales Outside Mexico 3,634 2,017 1,978 80% 84%
-------------------- ----- ----- ----- --- ---
Sales in Mexico 4,367 4,654 2,947 (6%) 48%
--------------- ----- ----- ----- --- ---
Total Sales (Tons) 429 529 358 (19%) 20%
----------------- --- --- --- ---- ---
Cost per Ton 16,040 10,274 22,642 56% (29%)
------------ ------ ------ ------ --- ----
Product Thousands Millions Average Thousands Millions Average
of Tons of Pesos Price per of Tons of Pesos Price per
Jan-Dec 2016 Jan-Dec 2016 Ton Jan - Dec 2015 Jan- Dec 2015 Ton
Jan-Dec Jan-Dec
2016 2015
--- ---- ----
Special Profiles 870 15,030 17,276 979 13,563 13,854
---------------- --- ------ ------ --- ------ ------
Commercial Profiles 1,215 12,486 10,277 1,047 10,913 10,423
------------------- ----- ------ ------ ----- ------ ------
Total Tons 2,085 27,516 13,197 2,026 24,476 12,081
---------- ----- ------ ------ ----- ------ ------
Product Thousands Million of Average Thousands of Tons Million of Average Thousands Millions of Average
of Tons Pesos Price per Jul-Sep Pesos Price per of Tons Pesos Price per
Oct-Dec 2016 Oct-Dec 2016 Ton Jul-Sep Ton Oct-Dec Oct-Dec 2015 Ton
Oct-Dec 2016 Oct-Dec
2016 Jul-Sep 2015
2016 2015
2016
--- ----
Special Profiles 184 4,760 25,870 209 3,285 15,718 196 2,712 13,837
---------------- --- ----- ------ --- ----- ------ --- ----- ------
Commercial Profiles 245 3,241 13,229 320 3,386 10,581 162 2,213 13,660
------------------- --- ----- ------ --- ----- ------ --- ----- ------
Total Tons 429 8,001 18,650 529 6,671 12,611 358 4,925 13,757
---------- --- ----- ------ --- ----- ------ --- ----- ------
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.
PRESS RELEASE 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.
