ASUR Reports 2Q17 Passenger Traffic Up 14.6% YoY in Mexico and 5.0% in San Juan, Puerto Rico

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MEXICO CITY, July 20, 2017 /PRNewswire/ — Grupo Aeroportuario del Sureste, S.A.B. de C.V. (NYSE: ASR; BMV: ASUR) (ASUR), the first privatized airport group in Mexico and operator of Cancun Airport and eight other airports in southeast Mexico, a JV partner in Aerostar Airport Holdings, LLC (Aerostar), and operator of the Luis Muñoz Marín International Airport in San Juan (LMM Airport), today announced results for the three- and six-month periods ended June 30, 2017.

Highlights for the Quarter

  • Increased ownership position in San Juan Airport from 50% to 60%.
  • Agreements to acquire controlling interest in two Colombian airport groups, subject to governmental approval.
  • Paid ordinary cash dividend of Ps.6.16 per share, for a total of Ps.1,848 million.
  • Passenger traffic in Mexico up 14.6% YoY, supported by increases of 18.0% and 12.0% in domestic and international traffic, respectively. Cancun Airport was the main traffic driver, with contributions from most of ASUR’s airports.
  • Traffic at LMM Airport up 5.0% YoY, 4.4% in domestic traffic and 9.6% in international traffic.
  • Consolidated commercial revenues per passenger reached Ps.102.3.
  • Consolidated EBITDA up 33.7% YoY, reaching Ps.1,787.9 million.
  • Closed the quarter with a cash position of Ps.2,829.8 million. Net Debt to LTM EBITDA stood at 1.3x, reflecting consolidation of Aerostar.
  • On track to complete construction of Terminal 4 at Cancun Airport, scheduled to open in 4Q17.

Table 1: Financial & Operational Highlights 1

 
 

Second Quarter

% Chg

 

2016

2017

Financial Highlights

     

Total Revenue

2,243,789

2,935,297

30.8

– Mexico

2,243,789

2,713,189

20.9

– San Juan

0

222,108

n/a

Commercial Revenues per PAX

97.2

102.3

5.2

– Mexico

97.2

104.7

7.72

– San Juan

0

80.4

n/a

EBITDA

1,337,509

1,787,914

33.7

Net Income

866,623

1,152,067

32.9

Majority Net Income

866,623

1,132,640

30.7

Earnings per Share (in pesos)

2.8887

3.7755

30.7

Earnings per ADS (in US$)

1.5993

2.0902

30.7

Capex

(397,103)

(391,862)

(1.3)

Cash & Cash Equivalents

2,675,313

2,829,843

5.8

Net Debt

1,313,395

8,064,548

514

Net Debt/ LTM EBITDA

0.3

1.3

391.8

Operational Highlights

     

Passenger Traffic

     

– Mexico

6,933,991

7,949,667

14.6

– San Juan

2,304,464

2,420,615

5.0

1 Unless otherwise stated, all financial figures discussed in this announcement are unaudited, prepared in accordance with International Financial Reporting Standards (IFRS) and represent comparisons between the three- and six-month periods ended June 30, 2017, and the equivalent three- and six-month periods ended June 30, 2016. On May 26, 2017 ASUR increased its share ownership in Aerostar to 60% from its prior 50% ownership. Accordingly, starting June 1, 2017. ASUR began to fully consolidate Aerostar results on a line by line basis, while until then results were accounted for by the equity method. Results are expressed in pesos. Tables state figures in thousands of pesos, unless otherwise noted. Passenger figures for Mexico only, exclude transit and general aviation passengers, unless otherwise noted. Commercial revenues include revenues from non-permanent ground transportation and parking lots. All U.S. dollar figures are calculated at the exchange rate of US$1.00 = Ps.18.0626. Definitions for EBITDA, Adjusted EBITDA marin, Majority Net Income, domestic and international traffic can be found on page 11 of this report.

2Q17 Earnings Call Date & Time: Friday, July 21, 2017 at 11:30 AM US ET; 10:30 AM CT Dial-in: 1-888-481-2845 (US & Canada); 1-719-325-4760 (International & Mexico). Access Code: 6770800 Replay: July 21, 2017 at 2:30 PM US ET, ending at 11:59 PM US ET on July 26, 2017. Dial-in number: 1-844-512-2921 (US & Canada) 1-412-312-6671 (International & Mexico); Access Code 6770800

Passenger Traffic

ASUR’s total passenger traffic in 2Q17 rose 12.3% YoY to 10.4 million passengers, driven by increases of 14.6% in Mexico and 5.0% in Puerto Rico. Note that 2Q17 passenger traffic, particularly in Mexico, benefited from the impact of Holy Week, which began on April 7, while during 2016, it began on March 18.

The 14.6% YoY growth in passenger traffic achieved in Mexico reflects increases of 18.0% and 12.0% in domestic and international traffic, respectively. Cancun was the main driver behind traffic growth, reporting increases of 24.0% and 12.2% in domestic and international traffic, respectively, with the majority of ASUR’s airports also contributing to higher traffic.

Total passenger traffic at LMM Airport in 2Q17 rose 5.0% YoY, reflecting increases of 4.4% and 9.6% in domestic and international traffic, respectively.

Tables with detailed passenger traffic information for each airport can be found on page 13 of this report.

Table 2: Passenger Traffic Summary

             
 

Second Quarter

% Chg.

 

Six-Months

% Chg.

2016

2017

 

2016

2017

Total Mexico

6,933,991

7,949,667

14.6

 

14,126,127

15,747,462

11.5

– Cancun

5,281,967

6,116,752

15.8

 

10,780,843

12,087,091

12.1

– 8 Other Airports

1,652,024

1,832,915

10.9

 

3,345,284

3,660,371

9.4

Domestic Traffic

3,081,084

3,634,801

18.0

 

5,829,761

6,712,600

15.1

– Cancun

1,624,509

2,014,177

24.0

 

2,988,147

3,585,217

20.0

– 8 Other Airports

1,456,575

1,620,624

11.3

 

2,841,614

3,127,383

10.1

International traffic

3,852,907

4,314,866

12.0

 

8,296,366

9,034,862

8.9

– Cancun

3,657,458

4,102,575

12.2

 

7,792,696

8,501,874

9.1

– 8 Other Airports

195,449

212,291

8.6

 

503,670

532,988

5.8

Total San Juan, Puerto Rico (1)

2,304,464

2,420,615

5.0

 

4,654,393

4,720,551

1.4

Domestic Traffic

2,029,510

2,119,261

4.4

 

4,119,053

4,146,943

0.7

International Traffic

274,954

301,354

9.6

 

535,340

573,608

7.1

Total Traffic

9,238,455

10,370,282

12.3

 

18,780,520

20,468,013

9.0

Domestic Traffic

5,110,594

5,754,062

12.6

 

9,948,814

10,859,543

9.2

International Traffic

4,127,861

4,616,220

11.8

 

8,831,706

9,608,470

8.8

1 On May 26, 2017, ASUR increased its ownership stake in LMM Airport from 50% to 60%. While ASUR began fully consolidating line by line Aerostar’s operations starting June 1, 2017, for comparison purposes this table includes traffic figures for LMM Airport for 2Q16 and 2Q17 as well as 6M16 and 6M17.

Note: Passenger figures for Mexico exclude transit and general aviation passengers, while LMM Airport includes transit passengers and general aviation.

Review of Consolidated Results

In May 2017 ASUR increased its share ownership in Aerostar to 60% from its prior 50% ownership. Accordingly, until May 31, 2017, ASUR’s ownership in Aerostar was accounted for by the equity method, while starting June 1, 2017, ASUR began to fully consolidate Aerostar results on a line by line basis.

Table 3: Summary of Consolidated Results

             
 

Second Quarter

%Chgr

 

Six-Months

% Chg

2016

2017

 

2016

2017

Total Revenues

2,243,789

2,935,297

30.8

 

4,321,143

5,412,045

25.2

Aeronautical Services

1,102,597

1,507,156

36.7

 

2,236,049

2,855,252

27.7

Non-Aeronautical Services

759,534

1,000,241

31.7

 

1,560,183

2,022,202

29.6

– Commercial Revenues

678,702

907,973

33.8

 

1,399,273

1,832,148

30.9

Total Revenues Excluding Construction Revenues

1,862,131

2,507,397

34.7

 

3,796,232

4,877,454

28.5

Construction Revenues

381,658

427,900

12.1

 

524,911

534,591

1.8

Total Operating Costs & Expenses

1,037,177

1,321,869

27.4

 

1,828,337

2,166,375

18.5

Operating Profit

1,206,612

1,613,428

33.7

 

2,492,806

3,245,670

30.2

Operating Margin

53.78%

54.97%

+119 bps

 

57.7%

60.0%

+228 bps

Adjusted Operating Margin (1)

64.80%

64.35%

-45 bps

 

65.7%

66.5%

+88 bps

EBITDA

1,337,509

1,787,914

33.7

 

2,752,102

3,559,127

29.3

EBITDA Margin

59.61%

60.91%

+130 bps

 

63.7%

65.8%

+207 bps

Adjusted EBITDA Margin (2)

71.83%

71.31%

-52 bps

 

72.5%

73.0%

+48 bps

Net Income

866,623

1,152,067

32.9

 

1,794,957

2,490,706

38.8

Earnings per Share

2.8887

3.7755

30.7

 

5.9832

8.3024

38.8

Earnings per ADS in US$

1.5993

2.0902

30.7

 

3.3125

4.5964

38.8

               

Total Commercial Revenues per Passenger (3)

97.2

102.3

5.2

 

98.3

109.5

11.4

Commercial Revenues from Direct Operations per Passenger (4)

17.2

18.5

7.2

 

17.5

18.7

7.1

Commercial Revenues Excl. Direct Operations per Passenger

80.0

83.8

4.8

 

80.8

90.8

12.4

               

1 Adjusted Operating Margin excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets in Mexico, and is equal to operating profit divided by total revenues less construction services revenues.

2 Adjusted EBITDA Margin excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets in Mexico, and is calculated by dividing EBITDA by total revenues less construction services revenues.

3 Includes transit and general aviation passengers for Mexico and Puerto Rico.

4 Represents ASUR’s operation of convenience stores in its airports.

 
 

Consolidated Revenues

Consolidated Revenues for 2Q17 rose 30.8% YoY to Ps.2,935.3 million, principally due to increases of:

  • 36.7% in revenues from aeronautical services, mainly as a result of the 12.3% increase in total passenger traffic, as well as the inclusion of one month of aeronautical revenues for LMM airport, which represented 9.9% of total aeronautical revenues for the quarter;
  • 31.7% in revenues from non-aeronautical services, principally reflecting the 33.8% increase in commercial revenues. Non-aeronautical revenues at Aerostar for June 2017 represented 7.2% of consolidated non-aeronautical revenues;
  • 12.1% in revenues from construction services in Mexico that resulted from higher capital expenditures and other investments in concessioned assets during the period.

Excluding revenues from construction services, which are deducted as costs under IRFS accounting standards, total revenues would have increased 34.7% YoY to Ps.2,507.4 million. Total revenues at Aerostar for June 2017 represented 11.9% of ASUR’s consolidated revenues excluding revenues from construction services.

Commercial Revenues in 2Q17 rose 33.8% YoY, principally due to the 12.3% increase in total passenger traffic, the inclusion of one month of commercial revenues at LMM Airport which represents 7.2% of consolidated commercial revenues. Commercial revenue growth in Mexico was mainly driven by increases in Duty Free, Retail Sales, and Food and Beverages. Consolidated Commercial Revenues per Passenger rose to Ps.102.3 in 2Q17, from Ps.97.2 in 2Q16, with Mexico contributing with Ps.104.7 in 2Q17 and LMM Airport with Ps.80.4 revenues per passenger in June 2017.

Consolidated Operating Costs and Expenses

Consolidated Operating Costs and Expenses for 2Q17 increased 27.4% YoY to Ps.1,321.9 million, wtih 9.7% of consolidated costs and expenses in 2Q17 attributable to June 2017 results from Aerostar. Excluding construction costs, however, operating costs and expenses rose 36.4% to Ps.894.0 million.

Cost of Services rose 49.3%, mainly reflecting maintenance expenses as well as higher cost of sales from convenience stores directly operated by ASUR. Higher energy, security and professional fees also contributed to the increase in cost of services. Aerostar’s June 2017 results contributed with 19.2% of cost of services in 2Q17.

Construction Costs rose 12.1% YoY, mainly due to higher levels of capital improvements made to the Mexican concessioned assets during the period.

G&A Expenses, which reflect administrative expenses in Mexico, increased 1.6% YoY.

The Technical Assistance fee paid to ITA increased 23.8% YoY, reflecting EBITDA growth in Mexico during the quarter, a factor in the calculation of the fee.

Concession fees, which include fees paid to the Mexican government and Puerto Rican Authorities, rose 23.7%, mainly due to an increase in regulated revenues in Mexico, a factor in the calculation of the fee.

Depreciation and Amortization increased 33.3% and mainly reflects capitalized investments. Aerostar contributed with 20.4% of depreciation and amortization as a result of the consolidation of June 2017 results.

Consolidated Operating Profit and EBITDA

Consolidated Operating Profit in 2Q17 increased 33.7% to Ps.1,613.4 million. Operating Margin for 2Q17 increased to 54.97% from 53.78% in 2Q16, principally as a result of the 30.8% increase in revenues and lower increase in costs and expenses. Aerostar’s results for June 2017 represented 5.9% of consolidated operating profit.

Adjusted Operating Margin, which excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets in Mexico, and is calculated as operating profit divided by total revenues less construction services revenues, was 64.35% in 2Q17 compared with 64.80% in 2Q16.

EBITDA rose 33.67% to Ps.1,787.9 million in 2Q17, reflecting higher operating leverage. Aerostar June 2017 results also contributed with 7.3% of EBITDA for the period. During 2Q17, ASUR recognized Ps.427.9 million in revenues from “Construction Revenues,” a year-on-year increase of 12.1%, due to higher capital expenditures and investments in concessioned assets. As a result, 2Q17 EBITDA Margin was 60.91% compared to 59.61% in 2Q16.

Adjusted EBITDA Margin, however, which excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets in Mexico, was 71.31% in 2Q17 compared to 71.83% in 2Q16.

Consolidated Comprehensive Financing Gain (Loss)

Table 4: Consolidated Comprehensive Financing Gain (Loss)

             
 

Second Quarter

% Chg

 

Six-Months

% Chg

 

2016

2017

 

2016

2017

 

Interest Income

45,627

55,313

21.2

 

82,340

109,852

33.4

 

Interest Expense

(29,341)

(71,406)

143.4

 

(61,286)

(112,720)

83.9

 

Foreign Exchange Gain (Loss), Net

(27,559)

(5,875)

(78.7)

 

(50,908)

1,298

(102.5)

 

Total

(11,273)

(21,968)

94.9

 

(29,854)

(1,570)

(94.7)

 
                               

In 2Q17, ASUR reported a Ps.22.0 million Comprehensive Financing Loss, compared to an Ps.11.3 million loss in 2Q16. Interest expense rose by Ps.42.1 million during the period, mainly due to a higher debt balance reflecting the full consolidation of Aerostar along with the increase in interest rates during the period. Aerostar’s interest expenses for June 2017 totaled Ps.41.9 million. Interest income increased by Ps.9.7 million, reflecting a higher cash balance and the increase in interest rates.

In 2Q17, ASUR reported a foreign exchange loss of Ps.5.8 million, reflecting a 1.2% quarterly average appreciation of the Mexican peso against the U.S. dollar on ASUR’s foreign currency net liability position. This compared to a Ps.27.6 million foreign exchange loss in 2Q16 resulting from the 4.5% quarterly average Mexican peso depreciation during that period.

Income Taxes

Income Taxes for 2Q17 rose by Ps.96.0 million year-over-year, principally due to the following factors:

  • A Ps.131.8 million increase in the provision for income taxes, reflecting a higher taxable income base at Cancun Airport; and
  • A Ps.35.8 million decline in deferred income taxes, largely reflecting the recognition of the effects of the 0.25% increase in inflation during 2Q17 on the fiscal tax balance.

Majority Net Income

Majority Net Income for 2Q17 increased by 30.7% to Ps.1,132.6 million, up from Ps.866.6 million in 2Q16. Earnings per common share for the quarter were Ps.3.7755 and earnings per ADS (EPADS) were US$2.0902 (one ADS represents ten series B common shares). This compares with earnings per share of Ps.2.8887 and EPADS of US$1.5993 for the same period last year. The higher majority net income principally reflects the 12.3% growth in passenger traffic and ASUR’s increased ownership in Aerostar. During 2Q17, ASUR reported a Ps.43.5 million gain corresponding to its participation in Aerostar, the joint venture to operate SJU airport, for the months of April and May 2017, compared to a net gain of Ps.58.2 million in 2Q16, while Aerostar results for June 2017 were fully consolidated line by line.

Consolidated Financial Position

On June 30, 2017, airport concessions represented 85.9% of the Company’s total assets, with current assets representing 12.3% and other assets representing 1.8%.

As of June 30, 2017, ASUR had cash and cash equivalents of Ps.2,829.8 million; a 19.09% decline from Ps.3,497.6 million at December 31, 2016.

Stockholders’ equity at the close of 2Q17 was Ps.24,891.1 million and total liabilities were Ps.13,675.2 million, representing 64.5% and 35.5% of total assets, respectively. Deferred liabilities represented 11.8% of ASUR’s total liabilities.

Total Debt at the end of the quarter increased to Ps.10,894.4 million, from Ps.3,988.7 million in 2Q16, principally reflecting debt at Aerostar as shown on Tables 5 and 6. The entirety of ASUR’s debt is denominated in U.S. dollars.

The Net Debt to LTM EBITDA ratio stood at 1.3x at the end of 2Q17, while the Interest Coverage ratio was 8.2x as of June 30, 2017. This compares with Net Debt to LTM EBITDA and Interest Coverage Ratio of 0.3x and 40.1x as of June 30, 2016, respectively.

Table 5: Consolidated Debt Indicators

     
 

June 30, 2016

March 31, 2017

June 30, 2017

Leverage

     

Total Debt/ LTM EBITDA (Times) (1)

0.8

0.7

1.7

Total Net Debt/ LTM EBITDA (Times) (2)

0.3

(0.1)

1.3

Interest Coverage Ratio (3)

40.1

39.0

8.2

Total Debt

3,988,708

4,040,594

10,894,391

Short-Term Debt

48,820

26,312

56,806

Long-Term Debt

3,939,889

4,014,283

10,837,585

Cash & Cash Equivalents

2,675,313

4,495,303

2,829,843

Total Net Debt(4)

1,313,395

(454,709)

8,064,548

       

1

The Total Debt to EBITDA Ratio is calculated as ASUR’s interest-bearing liabilities divided by its EBITDA.

2

The Total Net Debt to EBITDA Ratio is calculated as ASUR’s interest-bearing liabilities minus Cash & Cash Equivalents, divided by its EBITDA.

3

The Interest Coverage Ratio is calculated as ASUR’s EBIT divided by its interest expenses.

4

The Total Net Debt is calculated as Total Debt minus Cash & Casg Equivalents.

Table 6: Consolidated Debt Profile (US$ millions)

                                 
 

Airport

Maturity

Interest Rate

 

Amortization Schedule

 
         

2017

2018

2019

2020

2021 /22

2023 /35

Total

 

22 Yr-Senior Secured Note 2035

San Juan

Semi-Annual Amort.

5.75%

 

5.2

5.8

5.2

5.3

10.9

169.1

201.5

 

20 Yr-Senior Secured Note 2035

San Juan

Semi-Annual Amort.

6.75%

 

5.7

5.1

5.2

5.3

11.6

160.5

193.4

 

5 Yr-Syndicated Credit Facility

Cancun

Qtly. Amort.

Libor + 1.85%

 

1.7

4.5

20.6

50.8

42.0

119.6

 

5 Yr-Syndicated Credit Facility

Cancun

Qtly. Amort.

Libor + 1.75%

 

1.7

4.4

20.5

50.8

41.9

119.3

 

Total

       

14.3

19.8

51.5

112.2

106.4

329.6

633.8

 
                                       

Capital Expenditures

During 2Q17, ASUR’s capital investments totaled Ps.308.3 million. Of this, Ps.275.8 million relate to the Company’s plan to modernize its Mexican airports pursuant to its master development plans, mainly for the construction of Cancun’s Terminal 4, which is on track to open in 4Q17. In addition, during June 2017, the Company invested Ps.32.5 million at the LMM Airport in Puerto Rico. Accumulated consolidated capex for 1H17 totaled Ps.391.9 million.

Review of Mexico Operations

Table 7: Mexico Revenues & Commercial Revenues Per Passenger

           
 

Second Quarter

% Chg

 

Six-Months

% Chg

2016

2017

 

2016

2017

Total Passenger

6,984

7,991

14.4

 

14,237

15,839

11.3

               

Total Revenues

2,243,789

2,713,189

20.9

 

4,321,143

5,189,937

20.1

Aeronautical Services

1,102,597

1,357,330

23.1

 

2,236,049

2,705,426

21.0

Non-Aeronautical Services

759,534

927,959

22.2

 

1,560,183

1,949,920

25.0

– Commercial Revenues

678,702

836,502

23.3

 

1,399,273

1,760,677

25.8

Construction Revenues

381,658

427,900

12.1

 

524,911

534,591

1.8

Total Revenues Excluding Construction Revenues

1,862,131

2,285,289

22.7

 

3,796,232

4,655,346

22.6

               

Total Commercial Revenues

678,702

836,502

23.3

 

1,399,273

1,760,677

25.8

Commercial Revenues from Direct Operations (1)

120,369

145,925

21.2

 

248,978

295,302

18.6

Commercial Revenues Excluding Direct Operations

558,333

690,577

23.7

 

1,150,295

1,465,375

27.4

               

Total Commercial Revenues per Passenger

97.2

104.7

7.7

 

98.3

111.2

13.1

Commercial Revenues from Direct Operations per Passenger (1)

17

18

6.0

 

17

19

6.6

Commercial Revenues Excl. Direct Operations per Passenger

80

86

8.1

 

81

93

14.5

               

Note: For purposes of this table, approximately 49.8 and 41.0 thousand transit and general aviation passengers are included in 2Q16 and 2Q17, respectively, while 110.5 and 91.7 thousand transit and general aviation passengers are included in 1H16 and 1HQ17.

1Represents ASUR’s operation of convenience stores in airports.

Total Mexico Revenues

Total Mexico Revenues for 2Q17 rose 20.9% YoY to Ps.2,713.2 million, principally due to increases of:

  • 23.1% in revenues from aeronautical services, mainly as a result of the 14.6% increase in passenger traffic;
  • 22.2% in revenues from non-aeronautical services, principally reflecting the 23.3% increase in commercial revenues detailed below; and
  • 12.1% in revenues from construction services that resulted from higher capital expenditures and other investments in concessioned assets during the period.

Commercial Revenues in the quarter rose 23.3% year-over-year, principally due to the 14.6% increase in total passenger traffic and reported increases across all categories as shown on table 8. Commercial Revenues per Passenger, in turn, increased 7.7% to Ps.104.7 in 2Q17 from Ps.97.2 in 2Q16.

ASUR classifies commercial revenues as those derived from the following activities: duty-free stores, car rentals, retail operations, banking and currency exchange services, advertising, teleservices, non-permanent ground transportation, food and beverage operations, and parking lot fees.

As shown in table 9, during the last 12 months, ASUR opened nine commercial spaces at Cancun airport and eight commercial spaces at its other eight airports. More details of these openings can be found on page 14 of this report.

Table 8: Mexico Commercial Revenues

     

Table 9: Mexico Summary Retail and Other Commercial Space Opened since June 30,2016

Business Line (1)

YoY Chg.

 

Type of Commercial Space (1)

# of spaces opened

2T17

6M17

   

Duty Free

35.8%

36.5%

 

Cancun

9

Food and Beverage Operations

24.9%

34.9%

 

Retail

7

Retail Operations

18.3%

18.6%

 

Food and Beverage Operations

1

Car Rental Revenues

15.5%

19.5%

 

Banking and Currency Exchange Services

1

Advertasing Revenues

20.0%

20.0%

 

8 Other Airports

8

Banking and Currency Exchange Services

18.5%

22.4%

 

Retail

2

Ground Transportation

18.2%

14.3%

 

Duty Free

4

Teleservices

23.9%

20.3%

 

VIP Lounge

2

Parking Lot Fees

2.8%

1.8%

 

Total Mexico

17

Other Revenues

24.3%

28.1%

 

1 Only includes new stores opened during the period and excludes remodelings or contract renewals.

 

Total Commercial Revenues

23.3%

25.8%

   
       
         
     

Mexico Operating Costs and Expenses

Table 10: Mexico Operating Costs & Expenses

             
 

Second Quarter

% Chg

 

Six-Months

% Chg

2016

2017

 

2016

2017

Cost of Services

319,435

385,496

20.7

 

624,234

728,115

16.6

Administrative

50,771

51,595

1.6

 

103,296

108,693

5.2

Technical Assistance

70,472

87,268

23.8

 

144,977

180,595

24.6

Concession Fees

83,944

103,004

22.7

 

171,623

208,804

21.7

Depreciation and Amortization

130,897

138,973

6.2

 

259,296

277,944

7.2

Operating Costs and Expenses Excluding Construction Costs

655,519

766,336

16.9

 

1,303,426

1,504,151

15.4

Construction Costs

381,658

427,900

12.1

 

524,911

534,591

1.8

Total Operating Costs & Expenses

1,037,177

1,194,236

15.1

 

1,828,337

2,038,742

11.5

               

Total Mexico Operating Costs and Expenses for 2Q17 increased 15.1% year-over-year. This includes construction costs, which rose 12.1%, reflecting higher levels of capital improvements made to concessioned assets during the period. Excluding construction costs, operating costs and expenses rose 16.9% to Ps.766.3 million.

Cost of Services rose 20.7% mainly due to higher energy, security and maintenance expenses. Higher cost of sales from convenience stores directly operated by ASUR and professional fees also contributed to the increase in cost of services. Administrative expenses rose marginally 1.6% YoY.

The 23.8% increase in Technical Assistance fee paid to ITA reflects EBITDA growth in the quarter, a factor in the calculation of the fee.

Concession fees, which include fees paid to the Mexican government, rose 22.7%, mainly due to an increase in regulated revenues, a factor in the calculation of the fee.

Depreciation and Amortization increased 6.2% YoY, mainly reflecting capitalized investments.

Mexico Consolidated Comprehensive Financing Gain (Loss)

Table 11: Mexico Comprehensive Financing Gain (Loss)

             
 

Second Quarter

%Chg

 

Six-Months

% Chg

2016

2017

 

2016

2017

Interest Income

45,627

55,310

21.2

 

82,340

109,849

33.4

Interest Expense

(29,341)

(29,546)

0.7

 

(61,286)

(70,860)

15.6

Foreign Exchange Gain (Loss), Net

(27,559)

(5,875)

(78.7)

 

(50,908)

1,298

(102.5)

Total

(11,273)

19,889

(276.4)

 

(29,854)

40,287

(234.9)

In 2Q17, ASUR’s Mexico operations reported a Ps.19.9 million Comprehensive Financing Gain, compared to an Ps.11.3 million loss in 2Q16. This was mainly due to a lower foreign exchange loss in 2Q17 of Ps.5.8 million, reflecting a 0.6% quarterly average appreciation of the Mexican peso against the U.S. dollar on ASUR’s foreign currency net liability position. This compared to a Ps.27.6 million foreign exchange loss in 2Q16, resulting from the 4.5% quarterly average Mexican peso depreciation during that period.

Interest income in Mexico increased by 21.2% YoY to Ps.55.3 million in 2Q17, reflecting a higher cash balance and higher interest rates, while interest expense rose by 0.7% to Ps.29.5 million during the period.

Mexico Operating Profit and EBITDA

Table 12: Mexico Operating Profit & EBITDA

             
 

Second Quarter

% Chg

 

Six-Months

% Chg

2016

2017

   

2016

2017

 

Total Revenue

2,243,789

2,713,189

20.9

 

4,321,143

5,189,937

20.1

Total Revenues Excluding Construction Revenues

1,862,131

2,285,289

22.7

 

3,796,232

4,655,346

22.6

Operating Profit

1,206,612

1,518,953

25.9

 

2,492,806

3,151,195

26.4

Operating Margin

53.78%

55.98%

+221 bps

 

57.7%

60.7%

+303 bps

Adjusted Operating Margin (1)

64.80%

66.47%

+167 bps

 

65.7%

67.7%

+202 bps

EBITDA

1,337,509

1,657,926

24.0

 

2,752,102

3,429,139

24.6

EBITDA Margin

59.6%

61.1%

+150 bps

 

63.7%

66.1%

+238 bps

Adjusted EBITDA Margin (2)

71.8%

72.5%

+72 bps

 

72.5%

73.7%

+116 bps

               

1

Adjusted Operating Margin excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets, and is equal to operating profit divided by total revenues less construction services revenues.

2

Adjusted EBITDA Margin excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets, and is calculated by dividing EBITDA by total revenues less construction services revenues.

Operating Profit in 2Q17 increased 25.9% to Ps.1,518.9 million. Operating Margin for the quarter increased 221 bps YoY to 56.0% principally as a result higher operating leverage given YoY increases of 20.9% in revenues and 15.1% in costs and expenses.

Adjusted Operating Margin, which excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets, and is calculated as operating profit divided by total revenues less construction services revenues, increased 167 basis points to 66.5% in 2Q17.

EBITDA rose 24.0% to Ps.1,658.0 million from Ps.1,337.5 million in 2Q16, reflecting higher operating leverage. 2Q17 EBITDA Margin expanded to 61.1% from 59.6% in 2Q16.

During 2Q17, ASUR recognized Ps.427.9 million in revenues from “Construction Revenues,” a year-on-year increase of 12.1%, due to higher capital expenditures and investments in concessioned assets. Adjusted EBITDA Margin, which excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets, increased 72 basis points to 72.5% in 2Q17.

Mexico Tariff Regulation

The Mexican Ministry of Communications and Transportation regulates the majority of ASUR’s activities by setting maximum rates, which represent the maximum possible revenues allowed per traffic unit at each airport.

ASUR’s Mexico’s operations accumulated regulated revenues as of June 30, 2017 totaled Ps.4,655.34 million, with an average tariff per workload unit of Ps.171.92 (pesos of December 2016). ASUR’s regulated revenues for 1H17 accounted for approximately 60.90% of total Mexico income (excluding construction income) for the period.

The Mexican Ministry of Communications and Transportation reviews compliance with maximum rate regulations at the close of each year.

Review of Puerto Rico Operations

In May 2017, ASUR increased its share ownership in Aerostar to 60% from its prior 50% ownership. Accordingly, 2Q17 consolidated results as presented above reflect line by line consolidation of Aerostar results for June 2017, while prior to that, Aerostar’s results were accounted for by the equity method.

However, for purposes of providing a better understanding of the performance of LMM Airport, below we present the stand-alone results of Aerostar for the month of June as consolidated, and reported for the three- and six-month periods ended June 30, 2017, compared with the three- and six-month periods ended June 30, 2016.

Table 13: San Juan Airport Revenues & Commercial Revenues Per Passenger

(in thousands of Mexican pesos)

 

June 2017

Second Quarter

% Chg

Six-Months

% Chg

Consolidated

2016

2017

2016

2017

Total Passenger

889

2,304

2,421

5.0

4,654

4,721

1.4

               

Total Revenues

222,108

639,592

666,509

4.2

1,276,012

1,382,308

8.3

Aeronautical Services

149,826

429,276

446,667

4.1

846,109

915,947

8.3

Non-Aeronautical Services

72,282

210,317

219,842

4.5

429,902

466,361

8.5

– Commercial Revenues

71,471

206,660

217,365

5.2

423,767

461,255

8.8

               

Total Commercial Revenues

71,471

206,660

217,365

5.2

423,767

461,255

8.8

Commercial Revenues from Direct Operations (1)

18,159

48,978

55,363

13.0

99,531

114,055

14.6

Commercial Revenues Excluding Direct Operations

53,312

157,681

162,002

2.7

324,236

347,201

7.1

               

Total Commercial Revenues per Passenger

80.4

89.7

89.8

0.1

91.1

97.7

7.3

Commercial Revenues from Direct Operations per Passenger (1)

20.4

21.3

22.9

7.6

21.4

24.2

13.0

Commercial Revenues Excl. Direct Operations per Passenger

60.0

68.4

66.9

(2.2)

69.7

73.6

5.6

1Represents ASUR’s operation of convenience stores in LMM Airport.

Note: Figures in pesos at an average exchange rate of Ps.18.5692.

Puerto Rico Revenues

Total Puerto Rico Revenues for 2Q17 rose 4.2% YoY to Ps.666.5 million, principally due to increases of:

  • 4.1% in revenues from aeronautical services, mainly as a result of the 5.0% increase in passenger traffic; and
  • 4.5% in revenues from non-aeronautical services, principally reflecting the 5.2% increase in commercial revenues.

Commercial Revenues in the quarter rose 5.2% year-over-year, principally reflecting the positive impact from the remodeling program at LMM airport completed on 2016 and the 5.0% increase in total passenger traffic. Commercial Revenues per Passenger rose to Ps.89.8 from Ps.89.7 in 2Q16.

As shown on table 15, during the last 12 months, 11 new commercial spaces were opened at LMM Airport. More details of these openings can be found on page 14 of this report.

ASUR classifies commercial revenues as those derived from the following activities: duty-free stores, car rentals, retail operations, advertising, non-permanent ground transportation, food and beverage operations, and parking lot fees.

Table 14: LMM Airport Commercial Revenues

 

Table 15: LMM Airport Commercial Spaces Opened since June 30, 2016

       

Business Line (1)

YoY Chg.

 

Type of Commercial Space (1)

# of spaces

opened

2T17

6M17

 

Retail Operations

11.8%

16.7%

 

Retail

6

Other Revenue

79.6%

76.9%

 

Food & Beverage

3

Food and Beverage Operations

5.5%

6.0%

 

Other Revenue

2

Car Rental Revenues

1.0%

5.5%

 

Total Commercial Spaces

11

Ground Transportation

16.9%

15.7%

 

1 Only includes new stores opened during the period and excludes remodelings or contract renewals.

Advertising Revenues

(15.1%)

(6.7%)

 

Duty Free

(5.1%)

(1.1%)

     

Parking Lot Fees

(4.2%)

(0.7%)

     

Total Commercial Revenues

5.2%

8.8%

     
           
       

Puerto Rico Operating Costs and Expenses

Table 16: San Juan Airport Operating Costs & Expenses

(in thousands of Mexican pesos)

         
 

June 2017

Second Quarter

% Chg

Six-Months

% Chg

Consolidated

2016

2017

2016

2017

Cost of Services

91,326

267,915

278,625

4.0

561,925

580,210

3.3

Concession Fees

794

2,215

2,436

10.0

4,427

5,102

15.2

Depreciation and Amortization

35,513

106,442

107,254

0.8

206,819

223,313

8.0

Total Operating Costs & Expenses

127,633

376,572

388,315

3.1

773,171

808,625

4.6

Note: Figures in pesos at an average exchange rate of Ps.18.5692.

   

Total Operating Costs and Expenses at LMM Airport in 2Q17 increased 3.1% YoY to Ps.388.3 million.

Cost of Services increased 4.0% YoY, while Concession Fees, which include fees paid to the Puerto Rican government, rose 10.0%. Depreciation and Amortization increased 0.8%.

Puerto Rico Comprehensive Financing Gain (Loss)

Table 17: San Juan Airport Comprehensive Financing Gain (Loss)

(in thousands of Mexican pesos)

         
 

June 2017

Second Quarter

% Chg

Six-Months

% Chg

Consolidated

2016

2017

2016

2017

Interest Income

3

13

10

(23.1)

34

25

(26.5)

Interest Expense

(41,860)

(133,540)

(130,195)

(2.5)

(260,535)

(274,428)

5.3

Total

(41,857)

(133,527)

(130,185)

(2.5)

(260,501)

(274,403)

5.3

Note: Figures in pesos at an average exchange rate of Ps.18.5692.

During 2Q17, LMM Airport reported a Ps.130.2 million Comprehensive Financing Loss, compared with a Ps.133.5 million loss in 2Q16.

On February 22, 2013, and as part of the financing of the Concession Agreement, Aerostar entered into a subordinated term loan with Cancun Airport in the amount of US$100 million at an annual interest rate of LIBOR plus 2.10%, payable each July 1 and January 1, and with no fixed maturity date. As of June 30, 2017, the remaining balance is Ps.1,386.2 million.

On March 22, 2013, Aerostar carried out a private bond placement for a total of US$350 million to finance a portion of the Concession Agreement payment to the Puerto Rican Authority, and certain other costs and expenditures associated with it.

On June 24, 2015, Aerostar carried out a private bond placement for a total of US$50 million. In December 2015, Aerostar also contracted a line of revolving credit, which, as of June 30, 2017, had not been utilized.

All long-term debt is collateralized by the Aerostar total assets.

Puerto Rico Operating Profit and EBITDA

Table 18: San Juan Airport Operating Profit & EBITDA

(in thousands of Mexican pesos)

         
 

June 2017

Second Quarter

% Chg

Six-Months

% Chg

Consolidated

2016

2017

2016

2017

Total Revenue

222,108

639,592

666,509

4.2

1,276,012

1,382,308

8.3

Operating Profit

94,475

263,020

278,194

5.8

502,841

573,683

14.1

Operating Margin

42.5%

41.1%

41.7%

+62 bps

39.4%

41.5%

+209 bps

EBITDA

129,988

369,462

385,448

4.3

709,660

796,996

12.3

EBITDA Margin

58.5%

57.8%

57.8%

+7 bps

55.6%

57.7%

+204 bps

Note: Figures in pesos at an average exchange rate of Ps.18.5692.

Operating Profit in 2Q17 rose 5.8 to Ps.278.2 million, with Operating Margin up 62 bps to 41.7% from 41.1% in 2Q16.

EBITDA rose 4.3% to Ps.385.4 million from Ps.369.5 million in 2Q16, reflecting the positive impact from the increase in passenger traffic and cost savings during the period. EBITDA Margin rose 7 bps to 57.8% in 2Q17.

In accordance with the application of IFRIC 12, Aerostar recognizes on a monthly basis the provision for maintenance of those concession assets that will be replaced before the end of the concession. The monthly amount is Ps.5.6 million.

Puerto Rico Capital Expenditures

During 2Q17, Aerostar invested Ps.88.2 million to modernize LMM Airport, mainly for the construction of the Federal Inspection Station and in equipment for LMM’s operations. This compares with investments of Ps.65.1 million in 2Q16. Accumulated capex for 6M17 totaled Ps.136.3 million, compared with Ps.137.6 million in 6M16.

Puerto Rico Tariff Regulation

The Airport Use Agreement signed by Aerostar, the airlines serving LMM Airport, and the Puerto Rico Port Authority governs the relationship between Aerostar and the principal airlines serving LMM Airport. The agreement entitles Aerostar to an annual contribution from the airlines of US$62 million during the first five years of the term. From year six onwards, the total annual contribution for the prior year will increase in accordance with an adjusted consumer price index factor based on the U.S. non-core consumer price index. The annual fee is divided between the airlines that operate at LMM Airport in accordance with the regulations and structure defined under the Airport Use Agreement to establish the contribution of each airline for each particular year.

Definitions

Majority Net Income reflects ASUR’s equity interests in each of its subsidiaries and therefore excludes the 40% interest in Aerostar that is owned by other shareholders. Other than Aerostar, ASUR owns (directly or indirectly) 100% of its subsidiaries.

Domestic Passenger Traffic refers to traffic within Mexico for Mexican airports, and within San Juan airport and the U.S. for LMM Airport. International Passenger Traffic refers to traffic between Mexico and other countries for Mexican airports, and between San Juan Airport and countries other than the U.S. for LMM Airport.

EBITDA means net income before: provision for taxes, deferred taxes, profit sharing, non-ordinary items, participation in the results of associates, comprehensive financing cost and depreciation and amortization. EBITDA should not be considered as an alternative to net income, as an indicator of our operating performance or as an alternative to cash flow as an indicator of liquidity. Our management believes that EBITDA provides a useful measure that is widely used by investors and analysts to evaluate our performance and compare it with other companies. EBsITDA is not defined under U.S. GAAP or IFRS and may be calculated differently by different companies.

Adjusted EBITDA Margin is calculated by dividing EBITDA by total revenues less construction services revenues for Mexico and excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets. ASUR is required by IFRIC 12 to include in its income statement an income line reflecting the revenue from construction or improvements to concessioned assets made during the relevant period. The same amount is recognized under the expense line, “Construction Costs,” because ASUR hires third parties to provide construction services. Because equal amounts of Construction Revenues and Construction Costs have been included in ASUR’s income statement as a result of the application of IFRIC 12, the amount of Construction Revenues does not have an impact on EBITDA, but it does have an impact on EBITDA margin, as the increase in revenues that relates to Construction Revenues does not result in a corresponding increase in EBITDA. Like EBITDA Margin, Adjusted EBITDA Margin should not be considered as an indicator of our operating performance or as an alternative to cash flow as an indicator of liquidity and is not defined under U.S. GAAP or IFRS and may be calculated differently by different companies.

About ASUR Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASUR) is a Mexican airport operator with concessions to operate, maintain and develop the airports of Cancun, Merida, Cozumel, Villahermosa, Oaxaca, Veracruz, Huatulco, Tapachula and Minatitlan in the southeast of Mexico, as well as a 60% JV partner in Aerostar Airport Holdings, LLC, operator of the Luis Muñoz Marín International Airport in San Juan, Puerto Rico. The Company is listed both on the Mexican Bolsa, where it trades under the symbol ASUR, and on the NYSE in the U.S., where it trades under the symbol ASR. One ADS represents ten (10) series B shares. For more information, visit www.asur.com.mx

Analyst CoverageIn accordance with Mexican Stock Exchange Internal Rules Article 4.033.01, ASUR informs that the stock is covered by the following broker-dealers: Actinver Casa de Bolsa, Barclays, BBVA Bancomer, BofA Merrill Lynch, BX+, Citi Investment Research, Credit Suisse, Goldman Sachs, Grupo Bursatil Mexicano, Grupo Financiero Interacciones, Grupo Financiero Monex, HSBC, Intercam Casa de Bolsa, Insight Investment Research, Itau BBA Securities, INVEX, JP Morgan, Morgan Stanley, Morningstar, Nau Securities, Punto Casa de Bolsa, Santander Investment, Scotia Capital, UBS Casa de Bolsa and Vector.

Please note that any opinions, estimates or forecasts regarding the performance of ASUR issued by these analysts reflect their own views, and therefore do not represent the opinions, estimates or forecasts of ASUR or its management. Although ASUR may refer to or distribute such statements, this does not imply that ASUR agrees with or endorses any information, conclusions or recommendations included therein.

Some of the statements contained in this press release discuss future expectations or state other forward-looking information. Those statements are subject to risks identified in this press release and in ASUR’s filings with the SEC. Actual developments could differ significantly from those contemplated in these forward-looking statements. The forward-looking information is based on various factors and was derived using numerous assumptions. Our forward-looking statements speak only as of the date they are made and, except as may be required by applicable law, we do not have an obligation to update or revise them, whether as a result of new information, future or otherwise.

– SELECTED OPERATING TABLES & FINANCIAL STATEMENTS FOLLOW ?

Passenger Traffic Breakdown by Airport

México Passenger Traffic

             
   

Second Quarter

% Chg

 

Year to Date

% Chg

   

2016

2017

 

2016

2017

Domestic Traffic

3,081,084

3,634,801

18.0

 

5,829,761

6,712,600

15.1

CUN

Cancún

1,624,509

2,014,177

24.0

 

2,988,147

3,585,217

20.0

CZM

Cozumel

30,712

27,376

(10.9)

 

63,309

55,308

(12.6)

HUX

Huatulco

133,324

172,362

29.3

 

254,647

309,833

21.7

MID

Mérida

410,591

476,650

16.1

 

808,701

936,303

15.8

MTT

Minatitlán

58,523

51,546

(11.9)

 

112,693

100,344

(11.0)

OAX

Oaxaca

167,565

182,178

8.7

 

329,305

352,689

7.1

TAP

Tapachula

70,007

69,164

(1.2)

 

139,347

142,392

2.2

VER

Veracruz

305,150

327,829

7.4

 

578,315

617,185

6.7

VSA

Villahermosa

280,703

313,519

11.7

 

555,297

613,329

10.5

International Traffic

3,852,907

4,314,866

12.0

 

8,296,366

9,034,862

8.9

CUN

Cancún

3,657,458

4,102,575

12.2

 

7,792,696

8,501,874

9.1

CZM

Cozumel

96,987

105,635

8.9

 

241,709

248,038

2.6

HUX

Huatulco

13,922

16,522

18.7

 

86,140

98,035

13.8

MID

Mérida

37,470

44,513

18.8

 

76,070

92,689

21.8

MTT

Minatitlán

3,090

1,626

(47.4)

 

5,675

3,441

(39.4)

OAX

Oaxaca

12,378

13,791

11.4

 

29,898

32,728

9.5

TAP

Tapachula

2,688

3,502

30.3

 

5,452

7,111

30.4

VER

Veracruz

18,428

16,824

(8.7)

 

36,477

32,179

(11.8)

VSA

Villahermosa

10,486

9,878

(5.8)

 

22,249

18,767

(15.7)

Total Traffic México

6,933,991

7,949,667

14.6

 

14,126,127

15,747,462

11.5

CUN

Cancún

5,281,967

6,116,752

15.8

 

10,780,843

12,087,091

12.1

CZM

Cozumel

127,699

133,011

4.2

 

305,018

303,346

(0.5)

HUX

Huatulco

147,246

188,884

28.3

 

340,787

407,868

19.7

MID

Mérida

448,061

521,163

16.3

 

884,771

1,028,992

16.3

MTT

Minatitlán

61,613

53,172

(13.7)

 

118,368

103,785

(12.3)

OAX

Oaxaca

179,943

195,969

8.9

 

359,203

385,417

7.3

TAP

Tapachula

72,695

72,666

(0.0)

 

144,799

149,503

3.2

VER

Veracruz

323,578

344,653

6.5

 

614,792

649,364

5.6

VSA

Villahermosa

291,189

323,397

11.1

 

577,546

632,096

9.4

                 

US Passenger Traffic, San Juan Airport (LMM)

             
   

Second Quarter

% Chg

 

Year to Date

% Chg

   

2016

2017

 

2016

2017

SJU Total 1

2,304,464

2,420,615

5.0

 

4,654,393

4,720,551

1.4

Domestic Traffic

2,029,510

2,119,261

4.4

 

4,119,053

4,146,943

0.7

International Traffic

274,954

301,354

9.6

 

535,340

573,608

7.1

                 

1 On May 26, 2017, ASUR increased its ownership stake in LMM Airport from 50% to 60%. While ASUR began fully consolidating line by line Aerostar’s operations starting June 1, 2017, for comparison purposes this table includes traffic figures for LMM Airport for 2Q16 and 2Q17 as well as 6M16 and 6M17.

Note: Passenger figures for Mexico exclude transit and general aviation passengers, and SJU include transit passengers and general aviation.

ASUR Retail and Other Commercial Space Opened since June 30, 2016 1

 

Business Name

Type

Opening Date

MEXICO

Cancun

Tienda de Conveniencia

Retail

July 2016

Starbucks Café

Food & Beverage

August 2016

Tiendas Tropicales

Retail

August 2016

Tiendas Tropicales

Retail

August 2016

Tere Cazola

Retail

September 2016

Ice Casa de Cambio

Bank and Foreign

September 2016

TUMI

Retail

December 2016

Ay Guey

Retail

March 2017

Cuadra

Retail

April 2017

Merida

La Lupita

Retail

October 2016

MOBO

Retail

November 2016

Villahermosa

Dfass Mexico

Duty Free

October 2016

Veracruz

Dfass Mexico

Duty Free

October 2016

Oaxaca

NLG Services

VIP Lounge

February 2017

Huatulco

Dfass Mexico

Duty Free

December 2016

Dfass Mexico

Duty Free

December 2016

Global lounge op mex

VIP Lounge

April 2017

SAN JUAN, PUERTO RICO

Tech on the Go – Terminal A

Retail

July 2016

Tech on the Go – Terminal B

Retail

July 2016

Tech on the Go – Terminal C

Retail

July 2016

Turismo Slot Machines

Other Revenue

September 2016

Ready Credit Starions

Other Revenue

October 2016

El Colmadito – Terminal A

Retail

December 2016

El Market Jewerly – Terminal C

Retail

December 2016

Gustos Café Terminal – Terminal C

Food & Beverage

December 2016

Popeye’s Food Court – Terminal A

Food & Beverage

December 2016

El Market Jewerly – Terminal B

Retail

January 2017

Gustos Café Public Area – Terminal B

Food & Beverage

June 2017

1 Only includes new stores opened during the period and excludes remodelings or contract renewals.

Grupo Aeroportuario del Sureste, S.A.B. de C.V.

Operating Results per Airport

Thousands of Mexican pesos

               

Item

2Q2016

2Q 2016 Per Workload Unit

2Q 2017

2Q 2017 Per Workload Unit

 

YoY % Chg.

Per Workload Unit YoY % Chg.

Cancún 1

             

Aeronautical Revenues

824,488

154.1

1,025,616

165.6

 

24.4

7.5

Non-Aeronautical Revenues

690,543

129.0

849,639

137.2

 

23.0

6.4

Construction Services Revenues

323,433

60.4

389,596

62.9

 

20.5

4.1

Total Revenues

1,838,464

343.5

2,264,851

365.7

 

23.2

6.5

Operating Profit

892,683

166.8

1,152,264

186.0

 

29.1

11.5

EBITDA

974,597

182.1

1,237,304

199.8

 

27.0

9.7

Mérida

             

Aeronautical Revenues

76,651

153.6

94,892

165.3

 

23.8

7.6

Non-Aeronautical Revenues

19,989

40.1

24,244

42.2

 

21.3

5.2

Construction Services Revenues

18,944

38.0

4,423

7.7

 

(76.7)

(79.7)

Other 2

13

18

 

38.5

n/a

Total Revenues

115,597

231.7

123,577

215.3

 

6.9

(7.1)

Operating Profit

42,182

84.5

59,865

104.3

 

41.9

23.4

EBITDA

52,060

104.3

71,481

124.5

 

37.3

19.4

Villahermosa

             

Aeronautical Revenues

41,808

138.0

50,967

152.1

 

21.9

10.2

Non-Aeronautical Revenues

15,422

50.9

15,405

46.0

 

(0.1)

(9.6)

Construction Services Revenues

15,343

50.6

10

 

(99.9)

(100.0)

Other 2

14

21

0.1

 

50.0

n/a

Total Revenues

72,587

239.6

66,403

198.2

 

(8.5)

(17.3)

Operating Profit

23,855

78.7

31,181

93.1

 

30.7

18.3

EBITDA

30,800

101.7

38,659

115.4

 

25.5

13.5

Other Airports 3

             

Aeronautical Revenues

159,650

170.9

185,855

184.7

 

16.4

8.1

Non-Aeronautical Revenues

33,580

36.0

38,670

38.4

 

15.2

6.7

Construction Services Revenues

23,938

25.6

33,871

33.7

 

41.5

31.6

Other 2

36

51

0.1

 

41.7

n/a

Total Revenues

217,204

232.6

258,447

256.9

 

19.0

10.4

Operating Profit

73,686

78.9

89,731

89.2

 

21.8

13.1

EBITDA

105,352

112.8

124,391

123.6

 

18.1

9.6

Holding & Service Companies 4

             

Construction Services Revenues

n/a

n/a

 

n/a

n/a

Other 2

403,687

n/a

435,653

n/a

 

7.9

n/a

Total Revenues

403,687

n/a

435,653

n/a

 

7.9

n/a

Operating Profit

174,206

n/a

185,911

n/a

 

6.7

n/a

EBITDA

174,700

n/a

186,091

n/a

 

6.5

n/a

Consolidation Adjustment Mexico

             

Consolidation Adjustment

(403,750)

n/a

(435,743)

n/a

 

7.9

n/a

Total Mexico

             

Aeronautical Revenues

1,102,597

155.6

1,357,330

167.4

 

23.1

7.6

Non-Aeronautical Revenues

759,534

107.2

927,958

114.4

 

22.2

6.7

Construction Services Revenues

381,658

53.8

427,900

52.8

 

12.1

(1.9)

Total Revenues

2,243,789

316.6

2,713,188

334.6

 

20.9

5.7

Operating Profit

1,206,612

170.2

1,518,952

187.3

 

25.9

10.0

EBITDA

1,337,509

188.7

1,657,926

204.5

 

24.0

8.4

San Juan, US 5

             

Aeronautical Revenues

   

149,826

168.6

 

n/a

n/a

Non-Aeronautical Revenues

   

72,282

81.3

 

n/a

n/a

Construction Services Revenues

   

 

n/a

n/a

Total Revenues

   

222,108

249.9

 

n/a

n/a

Operating Profit

   

94,475

106.3

 

n/a

n/a

EBITDA

   

129,988

146.3

 

n/a

n/a

Consolidation Adjustment San Juan

             

Consolidation Adjustment

 

n/a

n/a

 

n/a

n/a

CONSOLIDATED ASUR

             

Aeronautical Revenues

1,102,597

155.6

1,507,156

167.5

 

36.7

7.6

Non-Aeronautical Revenues

759,534

107.2

1,000,240

111.2

 

31.7

3.7

Construction Services Revenues

381,658

53.8

427,900

47.6

 

12.1

(11.5)

Total Revenues

2,243,789

316.6

2,935,296

326.2

 

30.8

3.0

Operating Profit

1,206,612

170.2

1,613,427

179.3

 

33.7

5.3

EBITDA

1,337,509

188.7

1,787,914

198.7

 

33.7

5.3

1Reflects the results of operations of Cancun Airport and two Cancun Airport Services subsidiaries on a consolidated basis.

2 Reflects revenues under intercompany agreements which are eliminated in the consolidation adjustment.

3 Reflects the results of operations of our airports located in Cozumel, Huatulco, Minatitlan, Oaxaca, Tapachula and Veracruz.

4 Reflects the results of operations of our parent holding company and our services subsidiaries. Because none of these entities hold the concessions for our airports, we do not report workload unit data for theses entities.

5 Reflects the results of operations of San Juan Airport, Puerto Rico, US

Grupo Aeroportuario del Sureste, S.A.B. de C.V.

Consolidated Statements of Income from January 1 to June 30, 2017 and 2016

Thousands of Mexican pesos

               

Item

1H 2016

1H 2017

% Change

 

2Q 2016

2Q 2017

% Change

               

Revenues

             

Aeronautical Services

2,236,049

2,855,252

27.7

 

1,102,597

1,507,156

36.7

Non-Aeronautical Services

1,560,183

2,022,202

29.6

 

759,534

1,000,241

31.7

Construction Services

524,911

534,591

1.8

 

381,658

427,900

12.1

Total Revenues

4,321,143

5,412,045

25.2

 

2,243,789

2,935,297

30.8

               

Operating Expenses

             

Cost of Services

624,234

819,441

31.3

 

319,435

476,822

49.3

Cost of Construction

524,911

534,591

1.8

 

381,658

427,900

12.1

General and Administrative Expenses

103,296

108,693

5.2

 

50,771

51,595

1.6

Technical Assistance

144,977

180,595

24.6

 

70,472

87,268

23.8

Concession Fee

171,623

209,598

22.1

 

83,944

103,798

23.7

Depreciation and Amortization

259,296

313,457

20.9

 

130,897

174,486

33.3

Total Operating Expenses

1,828,337

2,166,375

18.5

 

1,037,177

1,321,869

27.4

               

Operating Income

2,492,806

3,245,670

30.2

 

1,206,612

1,613,428

33.7

               

Comprehensive Financing Cost

(29,854)

(1,570)

(94.7)

 

(11,273)

(21,968)

94.9

               

Income from Results of Joint Venture Accounted by the Equity Method

108,023

112,345

4.0

 

58,168

43,506

(25.2)

               

Income Before Income Taxes

2,570,975

3,356,445

30.6

 

1,253,507

1,634,966

30.4

               

Provision for Income Tax

764,518

1,004,156

31.3

 

374,358

506,182

35.2

Provision for Asset Tax

466

466

 

233

233

Deferred Income Taxes

11,034

(138,883)

(1,358.7)

 

12,293

(23,516)

(291.3)

               

Net Income for the Year

1,794,957

2,490,706

38.8

 

866,623

1,152,067

32.9

               

Majority Net Income

1,794,957

2,471,279

37.7

 

866,623

1,132,640

30.7

Non-Controlling interests

19,427

 

0

19,427

               

Earning per Share

5.9832

8.2376

37.7

 

2.8887

3.7755

30.7

Earning per American Depositary Share (in U.S. Dollars)

3.3125

4.5606

37.7

 

1.5993

2.0902

30.7

Exchange Rate per Dollar Ps. 18.0626

             

Grupo Aeroportuario del Sureste, S.A.B. de C.V.

Consolidated Balances Sheet as of June 30, 2017 and December 31, 2016

Thousands of Mexican pesos

         

Item

June 2017

December 2016

Variation

%

Assets

       

Current Assets

       

Cash and Cash Equivalents

2,829,843

3,497,635

(667,792)

(19.1)

Accounts Receivable, net

376,443

464,872

(88,429)

(19.0)

Recoverable Taxes and Other Current Assets

1,526,506

270,511

1,255,995

464.3

Total Current Assets

4,732,792

4,233,018

499,774

11.8

         

Non Current Assets

       

Machinery, Furniture and Equipment, net

440,044

323,099

116,945

36.2

Airports Concessions, net

33,139,682

20,284,126

12,855,556

63.4

Accounts Receivable from Joint Venture

1,886,546

(1,886,546)

(100.0)

Investment in Joint Venture Accounted by the Equity Method

2,489,302

(2,489,302)

(100.0)

Goodwill

253,777

253,777

Total Assets

38,566,295

29,216,091

9,350,204

32.0

         

Liabilities and Stockholders’ Equity

       

Current Liabilities

       

Trade Accounts Payable

120,514

11,401

109,113

957.0

Bank Loans

56,806

58,336

(1,530)

(2.6)

Accrued Expenses and Others Payables

1,049,507

523,446

526,061

100.5

Total Current Liabilities

1,226,827

593,183

633,644

106.8

         

Long Term Liabilities

       

Bank Loans

3,858,966

4,402,440

(543,474)

(12.3)

Long Term Debt

6,978,619

6,978,619

Deferred Income Taxes

1,599,806

1,456,020

143,786

9.9

Employee Benefits

10,993

10,494

499

4.8

Total Long Term Liabilities

12,448,384

5,868,954

6,579,430

112.1

         

Total Liabilities

13,675,211

6,462,137

7,213,074

111.6

         

Stockholders’ Equity

       

Capital Stock

7,767,276

7,767,276

Legal Reserve

1,075,002

893,133

181,869

20.4

Net Income for the Period

2,490,706

3,629,262

(1,138,556)

(31.4)

Cumulative Effect of Conversion of Foreign Currency

560,006

893,132

(333,126)

(37.3)

Retained Earnings

11,170,544

9,571,151

1,599,393

16.7

Non-Controlling Interests

1,827,550

1,827,550

Total Stockholders’ Equity

24,891,084

22,753,954

2,137,130

9.4

         

Total Liabilities and Stockholders’ Equity

38,566,295

29,216,091

9,350,204

32.0

Grupo Aeroportuario del Sureste, S.A.B. de C.V.

Consolidated Statement of Cash flow as of June 30, 2017 and 2016

Thousands of Mexican pesos

               

Item

1H

1H

%

 

2Q

2Q

%

 

2016

2017

Change

 

2016

2017

Change

Operating Activities

             

Income Before Income Taxes

2,570,975

3,356,445

30.6

 

1,253,507

1,634,966

30.4

Items Related with Investing Activities:

             

Depreciation and Amortization

259,296

313,457

20.9

 

130,897

174,485

33.3

Income from Results of Joint Venture Accounted by the Equity Method

(108,023)

(112,345)

4.0

 

(58,168)

(43,506)

(25.2)

Interest Income

(82,340)

(109,846)

33.4

 

(45,627)

(55,307)

21.2

Interest Payables

 

112,720

   

71,406

Foreign Exchange Gain (loss), Net Unearned

137,425

(350,915)

(355.4)

 

138,747

(127,231)

(191.7)

Sub-Total

2,777,333

3,209,516

15.6

 

1,419,356

1,654,813

16.6

Increase in Trade Receivables

145,751

140,430

(3.7)

 

310,585

412,441

32.8

Decrease in Recoverable Taxes and other Current Assets

347,307

(1,010,586)

(391.0)

 

258,990

(1,200,750)

(563.6)

Income Tax Paid

(816,327)

(1,016,564)

24.5

 

(401,961)

(538,158)

33.9

Trade Accounts Payable

172,559

93,279

(45.9)

 

40,290

(39,112)

(197.1)

               

Net Cash Flow Provided by Operating Activities

2,626,623

1,416,075

(46.1)

 

1,627,260

289,234

(82.2)

               

Investing Activities

             

Investments in Associates

(726,584)

 

(726,584)

Loans granted to Associates

286,507

 

286,507

Investments in Machinery, Furniture and Equipment, net

(397,103)

(391,862)

(1.3)

 

(240,370)

(308,348)

28.3

Interest Income

44,633

97,204

117.8

 

25,813

62,054

140.4

Initial Recognition for Consolidation

578,730

 

578,730

               

Net Cash Flow Used by Investing Activities

(352,470)

(156,005)

(55.7)

 

(214,557)

(107,641)

(49.8)

               

Excess Cash to Use in Financing Activities:

2,274,153

1,260,070

(44.6)

 

1,412,703

181,593

(87.1)

               

Interest paid

(79,862)

 

947

Dividends Paid

(1,683,000)

(1,848,000)

9.8

 

(1,683,000)

(1,848,000)

9.8

Tax on Dividends Paid

 

               

Net Cash Flow Used by Financing Activities

(1,683,000)

(1,927,862)

14.5

 

(1,683,000)

(1,847,053)

9.7

               

Net Increase in Cash and Cash Equivalents

591,153

(667,792)

(213.0)

 

(270,297)

(1,665,460)

516.2

               

Cash and Cash Equivalents at Beginning of Period

2,084,160

3,497,635

67.8

 

2,945,610

4,495,303

52.6

               

Cash and Cash Equivalents at the End of Period

2,675,313

2,829,843

5.8

 

2,675,313

2,829,843

5.8

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