March 09, 2014

ICTSI reports 20% hike in 2013 income


In a briefing last Friday, ICTSI (ICT) said its 2013 net income grew 20% YoY to US$172.4m. This came on a 17% growth in revenues to US$852.4m and buoyed by margin improvements in certain key terminals. The company also benefitted from the full-year contribution of its new terminals in Indonesia and Pakistan and the start of its port operations in Mexico and Honduras. Overall volumes grew 12% YoY to 6.31m TEUs.

Excluding the contributions of the new terminals, organic volumes grew 7%. Meanwhile, consolidated cash operating expenses rose at a slower pace (+13% YoY) resulting to a marked increase (+22%) in EBITDA to US$307.6m. This brought the EBITDA margin to 44% in 2013 from 42% in 2012.

Our take: ICT’s earnings beat consensus forecast by 11%. ICT’s continued expansion and acquisitions have been fueling growth as the diversified market presence have enabled the company to take advantage of the economic growth and recoveries in certain markets that compensated for the business disruptions and weakness in troubled countries like Syria and Argentina. The company’s ability to temper cash expense growth amid expanding operations hasalso been spurring earnings growth. – WealthSec