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Elementia Announces First Quarter 2020 Results

/EIN News/ -- MEXICO CITY, April 29, 2020 (GLOBE NEWSWIRE) -- Elementia, S.A.B. de C.V. (BMV: ELEMENT*) (“the Company”, or “Elementia”) announced today its financial and operating results for the first quarter (“1Q20”). Figures in this report are unaudited and have been prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). Figures are stated in Mexican pesos ($).

Main Highlights

  • During 1Q20, Elementia reported declines in consolidated revenues and EBITDA of 2% and 23%, respectively vs 1Q19; however, compared to the previous quarter, these increased 4% and 20%, respectively.
  • The spin off process is in “stand-by” until market conditions improve, however, operationally we are ready.
  • Regarding the sale of our cement assets in Pennsylvania, the process continues, but approval by the anti-trust authority is still pending; we expect this to be concluded by the end of the third quarter of 2020.
  • As an effect of the preventive measures decreed by the different governments related to COVID-19, we stopped operations beginning in mid-March in Peru, Bolivia, Ecuador, Colombia and El Salvador.
  • Leverage ratio for 1Q20 was 5.14x.

The Company´s strategic focus for 2020 will be, first, the generation of cash flow to overcome the crisis caused by the pandemic, followed by the following objectives:

1)  Inventory Reduction •  Delay vs plan; security inventories were created for contingency and in preparation for high season
2)  Cement U.S. – sustained growth •  Advances according to plan: EBITDA 157% vs 1Q19      
3)  Building Systems U.S. – growth and cash flow generation •  In process: EBITDA 83% lower than 1Q19, increase of 15% in sales for the same period
4)  Metal Products – return to profitability and cash flow generation •  In process: EBITDA 59% lower than 1Q19, 150% higher than 4Q19

Elementia ´s 1Q20 full earnings report and financial statements can be downloaded at www.elementia.com.

Recent Events

  • On March 20, 2020, the Company announced the preventive measures for the spread of Covid-19 and announced the closure of operations in Peru, Bolivia and Ecuador.
     
  • On March 30, 2020, the Company announced the closure of operations in El Salvador and Colombia, as well as the declaration of Essential Industry in the United States.
     
  • On April 13, 2020, the death of Jaime Ruiz Sacristan, member of the Board of Directors, was reported with deep sadness.

Earnings Conference Call Details

Thursday, April 30, 2020 
(BMV: ELEMENT*)
1Q20 Earnings Conference Call
12 p.m. (Mexico City)/ 1 p.m. (EST)

Hosted by:
Fernando Ruiz Jacques, Chief Executive Officer
Juan Francisco Sánchez Kramer, Chief Financial Officer

A Q&A session will follow the presentation.
Participants will be able to ask questions via telephone.

Dial-in Number:
1-877-830-2576 (USA)
+1-785-424-1726 (International)
Conference ID: ELEMENTIA

Webcast:
https://webcasts.eqs.com/elementia20200430/en 

Participants are requested to connect 15 minutes prior to the call

***
Conference Replay

A replay of this call will be available on April 30, 2020 at 4:00 p.m. EST for 7 days,
and will also be available at www.elementia.com in the Investor Relations section.
1-844-488-7474 (USA)
+1-862-902-0129 (International)
Conference Replay ID: 35968710


Investor Relation I-Advize Corporate Communications, Inc.
Mariana Agüeros Martínez Melanie Carpenter
Tel: +52 55 5728-5319 Tel. +1-212-406-3692
maguerosm@elementia.com mcarpenter@i-advize.com


Disclaimer on forward-looking statements

Figures are stated in nominal Mexican pesos ($) and all comparisons are made against the same period of the previous year, unless otherwise specified. Figures are stated in nominal Mexican pesos ($) in accordance to IFRS. As a result of figures roundup, totals may not exactly match the sum of the figures presented. The Audit Committee and the Board of Directors are aware about modification of the IFRS (IFRS9 and IFRS 16) reflected in the figures.

This document contains certain forward-looking statements and information related to Elementia, S.A.B. Of C.V. ("Elementia") that reflect the vision and / or expectations of Elementia and its management team in relation to its performance, business and future events. Forward-looking statements may include, but are not limited to, statements that could predict, project, indicate or imply certain future results, performance or achievements, and may include words "anticipate", "believe," "estimate, "expect”, “project”, “plan”, “predict”, “foresee”, “forecast”, “reach” or any other word or phrase with a similar meaning, which may be given orally or in writing.

The presented results may materially differ from those projected as a result of factors beyond Elementia's control. These factors may include, but are not limited to: economy in general; political and business conditions in Mexico and other markets where we operate; international capital and securities markets performance, as well as economic crises; our ability to refinance our financial obligations; if necessary; competition in the sector and markets; management’s expectations and estimates in regards to the Company's future financial performance and financing plans / programs; limited access to financing sources with competitive terms, and compliance with clauses to which we are bound to; our ability to meet debt obligations; our investment plans; currency fluctuations, interest rates or inflation, as well as currency conversion; changes in government legislation and regulation, including environmental regulation, and obligations arising therefrom, and judicial or administrative judgments against us; procurement policies and interpretations; increase in insurance premiums; changes in market prices, customer demand and preference, and competitive conditions; cyclicity and seasonality in our operating results; our ability to implement the corporate strategy; increase in prices of goods and / or services supplied to us, and fluctuations in the prices of the raw material; the imposition of price controls on the products we sell; trade barriers; technological innovation; costs uncertainty and regulation applicable to company mergers and acquisitions or strategic alliances; our ability to make acquisitions for regulatory or other issues, and successfully integrate the operations of the acquired businesses; liability claims including claims related to health, safety and environmental protection issues, as well as claims arising from joint lawsuits in Mexico or other jurisdictions in which we operate; failures in our information obtained from our technology systems, including data and communication systems; the impact by changes in accounting principles, new legislation, actions by regulatory authorities, government announcements and monetary or fiscal policy in Mexico, or in other markets in which we operate; decrease in the sale of our products by independent distributors; our ability to retain qualified personnel and rehire key personnel; our ability to extract synergies from our business mergers and acquisitions activities; delays by suppliers or lack of ability to obtain, under conditions acceptable to us, inputs required by us to produce the products we sell; investigations by federal authorities; and other risk factors.

Forward-looking statements and statements included in this document are subject to various risks, uncertainties and assumptions. In any circumstance these statements only refer to their date of elaboration and Elementia has no obligation to update or revise any of them, whether for new information, future events, among others, unless required by law. Therefore, caution should be exercised when using future projections. The document and its contents belong to the Company and may not be reproduced or distributed as a whole or as part of without prior written consent by Elementia.

About Elementia

Elementia is a unique platform that manufactures and commercializes building materials for the construction industry and adds value to all stages of this industry. The Company has grown, both organically and through strategic mergers and acquisitions, consolidating operations in 9 countries in the Americas, showing strong growth in its Cement business unit,while maintaining its leadership in the Metals business, and through our Building Systems unit, we offer lightweight construction products, which is the main building trend in the market. This has been possible thanks to the passion and dedication of its more than 7,000 employees and   leadership of its main brands, including: Cementos Fortaleza®, Giant®, Keystone® and Dragon®; Nacobre®; Allura®, Mexalit®, Plycem®, Eternit®, Duralit® y Fibraforte®. 

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