Company Announcements

ASUR 3Q19 Passenger Traffic Increased 0.4% YoY in Mexico, 5.7% in Puerto Rico and 14.0% in Colombia

MEXICO CITY, Oct. 23, 2019 /PRNewswire/ -- Grupo Aeroportuario del Sureste, S.A.B. de C.V.  (NYSE: ASR; BMV: ASUR) (ASUR), a leading international airport group with operations in Mexico, the U.S., and Colombia, today announced results for the three-and nine-month periods ended September 30, 2019.

3Q19 Highlights1

  • Passenger traffic in Mexico rose 0.4% YoY, with domestic traffic up 2.9% offsetting a 2.5% decline in international traffic.
  • Traffic in Puerto Rico (Aerostar) increased 5.7% YoY, supported by a 7.2% increase in domestic traffic which more than offset a 5.1% decline in international traffic.
  • Traffic in Colombia (Airplan) rose 14.0% YoY, driven by growth of 12.8% in domestic traffic and 21.0% in international traffic.
  • Consolidated commercial revenues per passenger reached Ps.99.2.
  • Consolidated EBITDA increased 8.7% YoY, reaching Ps.2,475.6 million.
  • Cash position at year-end was Ps.6,196.8 million. Net Debt to LTM EBITDA stood at 0.8x.

3Q19 Earnings Call

 

Date & Time: Thursday, October 24, 2019 at 10:00 AM
US ET; 9:00 AM CT

 

Dial-in: 1-800-289-0438 (US & Canada); 1-323-794-2423
(International y Mexico); Code: 3374927.

 

Replay: Thursday, October 24 at 1:00 PM US ET, ending at
11:59 PM US ET on Thursday, October 31, 2019. Dial-in
number: 1-844-512-2921 Dial-in number: 1-844-512-2921
(US & Canada) 1-412-317-6671 (International & Mexico);
Access Code 3374927.







Table 1:  Financial & Operational Highlights 1




Third Quarter

% Var


2018

2019

Financial Highlights




Total Revenue

3,682,047

4,106,266

11.5

Mexico

2,585,641

2,745,561

6.2

San Juan

692,466

808,251

16.7

Colombia

403,940

552,454

36.8

Commercial Revenues per PAX

92.5

99.2

7.3

Mexico

108.1

114.3

5.7

San Juan

108.0

124.2

14.9

Colombia

35.0

42.2

20.6

EBITDA

2,278,320

2,475,603

8.7

Net Income

1,006,574

1,340,432

33.2

Majority Net Income

988,054

1,314,628

33.1

Earnings per Share (in pesos)

3.2935

4.3821

33.1

Earnings per ADS (in US$)

1.6689

2.2205

33.1

Capex

363,379

445,755

22.7

Cash & Cash Equivalents

4,569,129

6,196,806

35.6

Net Debt

11,006,740

7,777,721

(29.3)

Net Debt / LTM EBITDA

1.2

0.8

(38.3)

Operational Highlights




Passenger Traffic




Mexico

8,303,559

8,333,227

0.4

San Juan

2,226,595

2,354,372

5.7

Colombia

2,800,730

3,192,585

14.0


1 Unless otherwise stated, all financial figures discussed in this announcement are unaudited, prepared in accordance with International Financial Reporting Standards (IFRS), including application of IFRS 9 and 15 that came into force in 2018, and represent comparisons between the three-and nine-month periods ended September 30, 2019, and the equivalent three- and nine-month periods ended September 30, 2018. All figures in this report are expressed in Mexican pesos, unless otherwise noted. Tables state figures in thousands of pesos, unless otherwise noted. Passenger figures for Mexico and Colombia 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 = Mexican Ps.19.7345 (source: Diario Oficial de la Federacion de Mexico) while Colombian peso figures are calculated at the exchange rate of COP$176.32 = Mexican Ps.1.00 (source: Investing). Definitions for EBITDA, Adjusted EBITDA Margin, Majority Net Income can be found on page 16 of this report. 

Passenger Traffic

ASUR's 3Q19 total passenger traffic increased 4.1% YoY reaching 13.9 million passengers driven by increases of 0.4% in Mexico, 5.7% in Puerto Rico, and 14.0% in Colombia. 

Passenger traffic growth of 0.4% YoY in Mexico was mainly driven by a 2.9% increase in domestic traffic which more than offset the 2.5% decline in international traffic. Merida and Oaxaca airports were the main drivers behind domestic traffic growth, with increases of 14.7% and 25.2%, respectively. Oaxaca, in turn, achieved a 59.6% increase in international traffic, while Cancun reported declines of 0.4% and 2.2% in domestic and international traffic, respectively.

Traffic in Puerto Rico increased 5.7% YoY, recovering following the impact of Hurricane Maria, which hit the island in September 2017. Domestic traffic increased 7.2% YoY while international traffic declined 5.1%.

Colombia reported a 14.0% YoY increase in total traffic driven by growth of 12.8% and 21.0% in domestic and international traffic, respectively. Rionegro Airport in Medellin was the main driver of traffic growth, reporting increases of 15.5% and 21.0% in domestic and international traffic, respectively. 

Tables with detailed passenger traffic information for each airport can be found on page 19 of this report.

Table 2: Passenger Traffic Summary


Third Quarter

% Chg.


Nine-Months

% Chg.


2018

2019


2018

2019

Total Mexico

8,303,559

8,333,227

0.4


25,158,418

25,783,861

2.5

- Cancun

6,251,306

6,160,215

(1.5)


19,189,289

19,374,608

1.0

- 8 Other Airports

2,052,253

2,173,012

5.9


5,969,129

6,409,253

7.4

Domestic Traffic

4,342,594

4,469,498

2.9


11,725,081

12,367,374

5.5

- Cancun

2,493,382

2,484,484

(0.4)


6,525,887

6,703,534

2.7

- 8 Other Airports

1,849,212

1,985,014

7.3


5,199,194

5,663,840

8.9

International Traffic

3,960,965

3,863,729

(2.5)


13,433,337

13,416,487

(0.1)

- Cancun

3,757,924

3,675,731

(2.2)


12,663,402

12,671,074

0.1

- 8 Others Airports

203,041

187,998

(7.4)


769,935

745,413

(3.2)

Total San Juan, Puerto Rico

2,226,595

2,354,372

5.7


6,362,573

7,072,180

11.2

Domestic Traffic

1,957,414

2,098,971

7.2


5,672,204

6,315,138

11.3

International Traffic

269,181

255,401

(5.1)


690,369

757,042

9.7

Total Colombia

2,800,730

3,192,585

14.0


7,681,418

8,807,551

14.7

Domestic Traffic

2,393,455

2,699,836

12.8


6,516,614

7,457,666

14.4

International Traffic

407,275

492,749

21.0


1,164,804

1,349,885

15.9

Total Traffic

13,330,884

13,880,184

4.1


39,202,409

41,663,592

6.3

Domestic Traffic

8,693,463

9,268,305

6.6


23,913,899

26,140,178

9.3

International Traffic

4,637,421

4,611,879

(0.6)


15,288,510

15,523,414

1.5

Note: Passenger figures for Mexico and Colombia exclude transit and general aviation passengers, while Puerto Rico includes transit and general aviation passengers.

Review of Consolidated Results

Table 3: Summary of Consolidated Results









Third Quarter

% Chg.


Nine-Months

% Chg.


2018

2019


2018

2019

Total Revenues

3,682,047

4,106,266

11.5


11,486,011

12,276,995

6.9

Aeronautical Services

2,251,115

2,380,645

5.8


6,715,133

7,181,875

7.0

Non-Aeronautical Services

1,340,615

1,488,391

11.0


4,160,293

4,577,310

10.0

Total Revenues Excluding Construction Revenues

3,591,730

3,869,036

7.7


10,875,426

11,759,185

8.1

Construction Revenues 1

90,317

237,230

162.7


610,585

517,810

(15.2)

Total Operating Costs & Expenses

2,025,512

2,079,656

2.7


5,834,738

5,989,758

2.7

Other Income






204,074

n/a

Operating Profit

1,656,535

2,026,610

22.3


5,651,273

6,491,311

14.9

Operating Margin

45.0%

49.35%

436 bps


49.2%

52.9%

367 bps

Adjusted Operating Margin 2

46.1%

52.38%

626 bps


52.0%

55.2%

324 bps

EBITDA

2,278,320

2,475,603

8.7


7,093,833

7,883,561

11.1

EBITDA Margin

61.88%

60.29%

(159 bps)


61.8%

64.2%

245 bps

Adjusted EBITDA Margin 3

63.43%

63.99%

55 bps


65.2%

67.0%

181 bps

Net Income

1,006,574

1,340,432

33.2


3,572,062

4,383,088

22.7

Majority Net Income

988,054

1,314,628

33.1


3,529,012

4,209,817

19.3

Earnings per Share

3.2935

4.3821

33.1


11.7634

14.0327

19.3

Earnings per ADS in US$

1.6689

2.2205

33.1


5.9608

7.1108

19.3









Total Commercial Revenues per Passenger 4

92.5

99.2

7.3


97.3

101.2

4.0

Commercial Revenues

1,241,918

1,385,129

11.5


3,840,862

4,242,814

10.5

Commercial Revenues from Direct Operations per Passenger 5

17.4

17.9

3.0


18.1

18.8

3.9

Commercial Revenues Excl. Direct Operations per Passenger

75.1

81.3

8.2


79.2

82.4

4.0


1 Construction revenues for Airplan in 3Q18 include the actual construction revenues which is equal to the construction cost of Ps.63.1 million, and an estimate

to the downside of income derived from the valuation of the intangible to present value (construction income) of Ps.80.9 million, according to IFRIC 12.

Construction revenues for Airplan in 3Q19 were equal to the construction cost of Ps.46.9 million.

2 Adjusted operating margin excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets in Mexico, Puerto Rico and Colombia, and is equal to operating income divided by total revenues minus revenues from construction services.

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

4 Passenger figures include transit and general aviation passengers Mexico, Puerto Rico and Colombia.

5 Represents ASUR´s operations in convenience stores.

Consolidated Revenues

Consolidated Revenues for 3Q19 rose 11.5% YoY, or Ps.424.2 million to Ps.4,106.3 million, mainly driven by increases of:

  • 5.8% in revenues from aeronautical services to Ps.2,380.6 million. Mexico contributed with Ps.1,552.1 million, while Puerto Rico and Colombia contributed with Ps.460.8 million and Ps.367.8 million, respectively;
  • 11.0% in revenues from non-aeronautical services to Ps.1,488.4 million, mainly due to the 11.5% increase in commercial revenues. Mexico contributed with Ps.1,056.2 million in revenues from non-aeronautical services, while Puerto Rico and Colombia contributed with Ps.294.4 million and Ps.137.8 million, respectively; and
  • 162.7%, or Ps.146.9 million in revenues from construction services. This was mainly due to capital expenditures in Cancun and Merida airports in line with Mexico's Master Development Plan, as well as new construction works in Puerto Rico. Construction revenues in Colombia increased reflecting the recognition of a Ps.81.0 million concesion valuation loss in 3Q18. Excluding the impact from the concession valuation loss in Colombia, consolidated construction revenues would have increased YoY by 38.5%, or Ps.65.9 million.

Excluding revenues from construction services, which are deducted as costs under IFRS accounting standards, total revenues would have increased 7.7% YoY to Ps.3,869.0 million. Mexico contributed with 67.4% of total revenues excluding revenues from construction services, while Puerto Rico and Colombia represented 19.5% and 13.1%, respectively.

Commercial Revenues in 3Q19 increased 11.5% YoY to Ps.1,385.1 million, mainly reflecting the 4.1% increase in total passenger traffic. Commercial revenues in Mexico rose 6.1% to Ps.955.8 million, mainly driven by the opening of new commercial spaces, including duty free, retail, food and beverages, and car rentals, among others.  Likewise, commercial revenues increased YoY by 21.5% to Ps.292.4 million in Puerto Rico, and 36.4% to Ps.137.0 million in Colombia.

Commercial Revenues per Passenger increased 7.3% YoY to Ps.99.2 in 3Q19. Mexico contributed with commercial revenues per passenger of Ps.114.3 in 3Q19, Puerto Rico with Ps.124.2, and Colombia with Ps.42.2. Commercial revenues per passenger increased 5.7% in Mexico, 14.9% in Puerto Rico and 20.6% in Colombia.

Consolidated Operating Costs and Expenses

Consolidated Operating Costs and Expenses, including construction costs, for 3Q19 increased 2.7% YoY, or Ps.54.1 million, to Ps.2,079.7 million. Excluding construction costs, operating costs and expenses declined 0.6%, or Ps.11.8 million, year-on-year, reflecting the following variations:

  • A 3.1%, or Ps.28.5 million, increase in Mexico reflecting higher administrative costs, increases in legal, technical assistance and concession fees. This was partially offset by declines in maintenance and energy costs;
  • A 12.4%, or Ps.61.3 million, increase in Puerto Rico mainly mainly as a result of an increase of Ps.12.4 million in payroll expenses along with higher professional fees. Furthermore, concession fees increased 13.4% as a result of higher aeronautical revenues while depreciation and amortization expenses rose 13.6% reflecting higher capex investments; and
  • A 23.0%, or Ps.101.9 million, decline in Colombia composed reflecting a Ps.116.2 million, or 52.3%, decline in depreciation and amortization principally reflecting a change in amortization methodology, which starting January 2019 is on a straight-line basis instead of the percentage of completion method which implied variations in the accumulated amortization rate of the concession. This was partially offset by the 20.3%, or Ps.16.2 million, increase in concession fees as a result of the increase in aeronautical revenues that was mainly driven by a 13.1% increase in passenger traffic.

Cost of Services rose by 4.6%, or Ps.43.1 million. In Mexico, cost of services increased 1.7% YoY, or Ps.8.1 million, mainly reflecting higher legal professional fees and administrative expenses, partially offset by a decline in maintenance and energy costs. By contrast, cost of services in Colombia declined 1.3%, or Ps.1.9 million, principally reflecting higher professional legal fees in 3Q18, partially ofset by an increase in the maintenance provision for the future replacement of fixed assets as per IFRIC 12. Cost of services in Puerto Rico increased 11.8%, or Ps.36.9 million, principally reflecting higher payroll costs along with an increase in professional fees.

Construction Costs increased by 38.5% YoY, or Ps.65.9 million. This was mainly driven by increases of 48.6%, or Ps.44.9 million, in Mexico and 234.4%, or Ps.37.2 million, in Puerto Rico, partially offset by a 25.7%, or Ps.16.2 million, decline in Colombia. 

G&A Expenses, which reflect administrative expenses in Mexico, increased 14.0% YoY mainly reflecting higher salaries and professional fees.

Consolidated Technical Assistance increased 5.1% YoY, mainly reflecting EBITDA growth in Mexico, excluding extraordinary items, a factor in the calculation of the fee.

Concession Fees increased 11.2% YoY, principally reflecting higher fees paid to the Mexican government, mainly due to an increase in regulated revenues in Mexico, a factor in the calculation of the fee. Concession fees for 3Q19 also reflect increases in Puerto Rico and Colombia.

Depreciation and Amortization declined 17.1%, or Ps.92.9 million, principally due to a Ps.116.3 million, or 52.3%, decline in Colombia, resulting mainly from the change in the amortization methodology, which as of January 1, 2019 is on a straight line rather than a percentage of completion basis. By contrast, depreciation and amortization in Mexico increased 1.8%, or Ps.3.0 million, while Puerto Rico reported an increase of 13.6%, or Ps.20.4 million, mainly from the recognition starting March 2018 of the amortization of the intangible asset resulting from the valuation of the investment in Aerostar under IFRS 3.

Consolidated Operating Profit and EBITDA

Consolidated Operating Profit in 3Q19 ammounted to Ps.2,026.6 million with Operating Margin of 49.4%. This was principally due to increases of 5.8%, or Ps.129.5 million, in aeronautical revenues, and 11.0%, or Ps.147.8 million, in non-aeronautical revenues. Mexico reported an operating profit of 1,665.4 million, Puerto Rico of Ps.197.3 million, and Colombia Ps.163.9 million.

Adjusted Operating Margin, which excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets in Mexico, Colombia, and Puerto Rico, and is calculated as operating profit divided by total revenues less construction services revenues, was 52.4% in 3Q19 compared with 46.1% in 3Q19.

EBITDA increased 8.7%, or Ps.197.3 million, to Ps.2,475.6 million in 3Q19. EBITDA increased 5.1%, or Ps.89.6 million in Mexico, 11.6%, or Ps.38.2 million in Puerto Rico, and 34.6%, or Ps.69.5 million in Colombia. 3Q19 EBITDA Margin was 60.3% compared to 61.9% in 3Q18.

Adjusted EBITDA Margin, which excludes the effect of IFRIC 12 with respect to the construction of or improvements to concessioned assets in Mexico, Puerto Rico, and Colombia was 64.0% in 3Q19 compared to 63.4% in 3Q18.

Consolidated Comprehensive Financing Gain (Loss)

Table 4: Consolidated Comprehensive Financing Gain (Loss)









Third Quarter

% Chg.


Nine-Months

% Chg.



2018

2019


2018

2019


Interest Income

58,148

73,708

26.8


209,010

272,744

30.5


Interest Expense

(298,931)

(279,890)

6.4


(914,861)

(838,025)

8.4


Foreign Exchange Gain (Loss), Net

(39,492)

70,388

n/a


33,095

60,580

83.0


Total

(280,275)

(135,794)

51.5


(672,756)

(504,701)

25.0


















In 3Q19, ASUR reported a Ps.135.8 million Consolidated Comprehensive Financing Loss, compared to a Ps.280.3 million loss in 3Q18.

Interest expense declined by Ps.19.0 million during the period, or 6.4%, mainly reflecting a Ps.12.9 million decline in interest payments in Mexico as the Company paid down loans in June and November 2018, together with a Ps.10.0 million decline in interest payments in Colombia, reflecting a loan payments in 2H18. Interest income increased Ps.15.6 million, or 26.8%, reflecting a higher cash balance in the quarter.

In 3Q19, ASUR reported a foreign exchange gain of Ps.70.4 million, resulting from the 1.14% quarterly average depreciation of the Mexican peso against the U.S. dollar together with a lower U.S. dollar foreign currency net asset position. This compares to a Ps.39.5 million foreign exchange loss in 3Q18 resulting from the 3.8% quarterly average Mexican peso appreciation during that period on a higher foreign currency net asset position.

Income Taxes

Income Taxes for 3Q19 increased by Ps.180.7 million year-over-year, principally due to the combination of following factors:

  • A Ps.95.5 million YoY increase in deferred income taxes, mainly reflecting a deferred income tax gain in Colombia in 3Q18 resulting from the reduction in the value of the concession as per IFRIC 12 and a decrease in the tax benefit in Mexico resulting from a change in the tax amortization rate on the concessioned assets starting in the second quarter of 2018. The decrease in the inflation rate from 1.16% in 3Q18 to 0.7% in 3Q19 also contributed to higher deferred income. This was partially offset by a reduction in the tax rate used for the calculation of deferred income taxes in Colombia from 33% to 30% starting on January 2019, resulting from the fiscal reform enacted on December 23, 2018.
  • An Ps.85.4 million increase in income taxes, reflecting mainly a higher taxable income base for Cancun, Veracruz and Villahermosa airports in Mexico. Higher YoY income taxes also reflect a tax gain in Colombia in 2018 resulting from a change in tax legislation according to Decree 2235 published on December 27, 2017, along with a decline in deferred taxes in connection with the decline in the value of the concession in line with IFRIC12.   

Majority Net Income

Majority Net Income  for 3Q19 increased by 33.1% or Ps.326.6 million, to Ps.1,314.6 million from Ps.988.0 million in 3Q18. Earnings per common share for the quarter were Ps.4.3821 and earnings per ADS (EPADS) were US$2.2205 (one ADS represents ten series B common shares). This compares with earnings per share of Ps.3.2935 and earnings per ADS of US$1.6689 for the same period last year.

Net Income

Net Income  for 3Q19 increased by 33.2%, or Ps.333.9 million, to Ps.1,340.4 million from Ps.1,006.6 million in 3Q19.

Consolidated Financial Position

On September 30, 2019, airport concessions represented 85.5% of the Company's total assets, with current assets representing 13.5% and other assets representing 1.0%. As of September 30, 2019, ASUR had cash and cash equivalents of Ps.6,196.8 million, a 35.2% increase from Ps.4,584.5 million at December 31, 2018. Mexico contributed with Ps.1,260.6 million in cash and cash equivalents in 3Q19, Puerto Rico with Ps.146.9 mmillion and Colombia with Ps.204.8 million.

As of September 30, 2019, the valuation of ASUR's investment in Aerostar in accordance with IFRS 3 "Business Combinations" resulted in the following effects on the balance sheet: i) the recognition of a net intangible asset of Ps.6,013.5 million, ii) goodwill of Ps.887.2 (net of an impairment of Ps.4,719.1 million), iii) deferred taxes of Ps.601.4 million, and iv) a minority interest of Ps.5,366.2 million within stockholders' equity.

Furthermore, the valuation of ASUR's investment in Airplan resulted in the following effects on the balance sheet as of September 30, 2019: i) the recognition of a net intangible asset of Ps.1,337.0 million, ii) goodwill of Ps.1,504.9, iii) deferred taxes of Ps.212.0 million, and iv) Ps.630.4 million from the recognition of bank loans at fair value.

On May 25, 2018, ASUR acquired an additional 7.6% of the share ownership of Airplan, bringing its ownership stake in the company to 100%. This transaction resulted in the recognition of shareholders' equity of approximately Ps.213.5 million (Ps.37.7 million by majority interest and Ps.175.8 by minority interest).

Stockholders' equity at the close of 3Q19 was Ps.37,974.0 million and total liabilities were Ps.18,998.1 million, representing 66.7% and 33.3% of total assets, respectively. Deferred liabilities represented 16.3% of ASUR's total liabilities.

Total Debt at quarter-end decreased to Ps.13,974.5 million fom Ps.14,500.4 million on December 31, 2018. On September 30, 2019, 28.5% of ASUR's total debt was denominated in Mexican pesos, 56.8% in U.S. Dollars (at Aerostar) and 14.7% in Colombian pesos. Net Debt to LTM EBITDA stood at 0.8x at the close of 3Q19, while the Interest Coverage ratio was 10.3x as of September 30, 2019. This compares with Net Debt to LTM EBITDA of 1.0x and an Interest Coverage Ratio of 8.7x as of December 31, 2018.

Table 5: Consolidated Debt Indicators


September 30,

2018

December 31,

2018

September 30,

2019

Leverage




Total Debt / LTM EBITDA (Times) 1

1.7

1.5

1.4

Total Net Debt / LTM EBITDA (Times) 2

1.2

1.0

0.8

Interest Coverage Ratio 3

9.7

8.7

10.3

Total Debt

15,575,869

14,500,381

13,974,527

Short-term Debt

295,206

500,105

277,847

Long-term Debt

15,280,663

14,000,276

13,696,680

Cash & Cash Equivalents

4,569,129

4,584,507

6,196,806

Total Net Debt 4

11,006,740

9,915,874

7,777,721





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





















Table 6: Consolidated Debt Profile

(in millions)











Airport

Payment of
principal

Currency

Interest
Rate

Amortization Schedule 



2019

2020

2021 /23

2024 /35

Total


 5 Yr-Syndicated Credit

Facility

 Cancun

 To the

expiration 

 $PMx

 Tiie +

1.25%

-

-

2,000.0

-

2,000.0


 7 Yr-Syndicated Credit

Facility

 Cancun

 Semi-Annual

Amort.

 $PMx

 Tiie +

1.25%

-

20.0

1,860.0

120.0

2,000.0


 22 Yr-Senior Note

2035

 San Juan

 Semi-Annual

Amort.

 $Usd

5.75%

-

9.3

31.0

277.2

317.5


 20 Yr-Senior Note

2035

 San Juan

 Semi-Annual

Amort.

 $Usd

6.75%

-

1.4

4.4

39.6

45.4


 12 Yr-Syndicated

Credit Facility

 Colombia

 Qtly. Amort.

 $Pcol

DTF1 + 4

2,625.0

12,000.0

44,250.0

81,000.0

139,875.0


 12 Yr-Syndicated

Credit Facility

 Colombia

 Qtly. Amort.

 $Pcol

DTF1 + 4

1,785.0

8,160.0

30,090.0

55,077.0

95,112.0


 12 Yr-Syndicated

Credit Facility

 Colombia

 Qtly. Amort.

 $Pcol

DTF1 + 4

1,575.0

7,200.0

26,550.0

48,600.0

83,925.0


 12 Yr-Syndicated

Credit Facility

 Colombia

 Qtly. Amort.

 $Pcol

DTF1 + 4

647.5

2,960.0

10,915.0

19,980.0

34,502.5


 12 Yr-Syndicated

Credit Facility

 Colombia

 Qtly. Amort.

 $Pcol

DTF1 + 4

647.5

2,960.0

10,915.0

19,980.0

34,502.5


 12 Yr-Syndicated

Credit Facility

 Colombia

 Qtly. Amort.

 $Pcol

DTF1 + 4

140.0

640.0

2,360.0

4,320.0

7,460.0


 12 Yr-Syndicated

Credit Facility

 Colombia

 Qtly. Amort.

 $Pcol

DTF1 + 4

140.0

640.0

2,360.0

4,320.0

7,460.0


 12 Yr-Syndicated

Credit Facility

 Colombia

 Qtly. Amort.

 $Pcol

DTF1 + 4

140.0

640.0

2,360.0

4,320.0

7,460.0




Note: Mexican syndicated loans were contracted in October 2017, Puerto Rico bonds were contracted in March 2013 and June 2015, respectively, and the syndicated loan from Colombia was contracted in June 2015 with a three-year grace period.

1 DTF is an average 90-day rate to which the credit facilities in Colombia are pegged.


















Capex

Capex during 3Q19 ammounted to Ps.445.7 million. Of this, Ps.339.4 million reflect the Company's plan to modernize its Mexican airports pursuant to its master development plans, Ps.59.4 million were made by Aerostar in Puerto Rico and Ps.46.9 million by Airplan in Colombia. This compares with Ps.363.4 million invested in 3Q18, Ps.102.8 million in Mexico, Ps.245.6 million in Puerto Rico, and Ps.14.9 million in Colombia.  

During 9M19 ASUR invested a total of Ps.886.9 million, Ps.542.3 million in Mexico, Ps.238.4 million in Puerto Rico, and Ps.106.2 million in Colombia. This compares with capex of Ps.1,369.8 million in 9M18, of which Ps.329.6 million were invested in Mexico mainly for the construction of Terminal 4, in line with the Master Development Plan, Ps.645.9 million in Puerto Rico and Ps.394.2 million in Colombia.

Review of Mexico Operations

Table 7: Mexico Revenues & Commercial Revenues Per Passenger

(in thousands of Mexican pesos)


Third Quarter

% Chg.


Nine-Months

% Chg.


2018

2019


2018

2019

Total Passenger (in thousands)

8,333

8,365

0.4


25,263

25,884

2.5









Total Revenues

2,585,641

2,745,561

6.2


7,762,541

8,315,658

7.1

Aeronautical Services

1,495,944

1,552,105

3.8


4,483,133

4,765,464

6.3

Non-Aeronautical Services

997,370

1,056,224

5.9


3,154,213

3,358,960

6.5

Construction Revenues

92,327

137,232

48.6


125,195

191,234

52.7

Total Revenues Excluding Construction Revenues

2,493,314

2,608,329

4.6


7,637,346

8,124,424

6.4









Total Commercial Revenues

900,884

955,752

6.1


2,843,468

3,036,476

6.8

Commercial Revenues from Direct Operations

183,285

190,006

3.7


568,518

609,054

7.1

Commercial Revenues Excluding Direct Operations

717,599

765,746

6.7


2,274,950

2,427,422

6.7









Total Commercial Revenues per Passenger

108.1

114.3

5.7


112.6

117.3

4.2

Commercial Revenues from Direct Operations per Passenger 1

22.0

22.7

3.2


22.5

23.5

4.6

Commercial Revenues Excl. Direct Operations per Passenger

86.1

91.5

6.3


90.1

93.8

4.1

Note: For purpose of this table, approximately 29.0 and 31.7 thousand transit and general aviation passengers are included in 3Q18 and 3Q19, respectively, while 105.0 and 100.3 thousand transit and general aviation passengers are included in 9M18 and 9M19.  


1 Represents the operation of ASUR in its convenience stores in Mexico.  

Mexico Revenues

Mexico Revenues for 3Q19 increased 6.2% YoY to Ps.2,745.6 million. Excluding construction, revenues rose 4.6% YoY, reflecting the following increases:

  • 3.8% in revenues from aeronautical services, principally due to the 0.4% increase in passenger traffic; and
  • 5.9% in revenues from non-aeronautical services, principally reflecting the 6.1% growth in commercial revenues.

Commercial Revenues increased 6.1% YoY, mainly due to the 0.4% increase in total passenger traffic (including transit and general aviation passengers) and reported increases across all categories, except car rentals, as shown on Table 8.

Commercial Revenues per Passenger for 3Q19 increased 5.7% YoY to Ps.114.3 from Ps.108.1 in 3Q18.

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 7 new commercial spaces at Cancun Airport, and one commercial space at its other eight Mexican airports. More details of these openings can be found on page 20 of this report.

Table 8: Mexico Commercial Revenue Performance



Table 9: Mexico Summary Retail and Other Commercial Spaces
Opened since September 30, 2018.

Business Line

YoY Chg


Type of Commercial Space 1

# Of

Spaces

Opened

3Q19

9M19


Teleservices

16.5%

11.4%


Cancun

7

Advertising Revenues

10.0%

20.2%


Retail Operations

5

Ground Transportation

9.5%

14.5%


Other Revenue

2

Food and Beverage Operations

8.6%

9.8%


8 Others Airport

1

Duty Free

8.4%

5.0%


Car Rental Revenues

1

Other Revenue

5.9%

9.3%


Mexico

8

Retail Operations

5.1%

5.5%


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

Parking Lot Fees

3.1%

7.1%


Banking and Currency Exchange Services

2.7%

(3.5%)


Car Rental Revenues

(1.7%)

5.5%




Total Commercial Revenues

6.1%

6.8%

















Mexico Operating Costs and Expenses

Table 10: Mexico Operating Costs & Expenses









Third Quarter

%
Chg.


Nine-Months

%
Chg.


2018

2019


2018

2019

Cost of Services

483,261

491,336

1.7


1,328,522

1,419,733

6.9

Administrative

56,436

64,333

14.0


173,738

185,212

6.6

Technical Assistance

92,038

96,883

5.3


289,607

307,911

6.3

Concession Fees

113,389

118,119

4.2


344,895

367,034

6.4

Depreciation and Amortization

169,226

172,228

1.8


506,298

515,234

1.8

Operating Costs and Expenses Excluding Construction Costs

914,350

942,899

3.1


2,643,060

2,795,124

5.8

Construction Costs

92,327

137,232

48.6


125,195

191,234

52.7

Total Operating Costs & Expenses

1,006,677

1,080,131

7.3


2,768,255

2,986,358

7.9

Total Mexico Operating Costs and Expenses for 3Q19 increased 7.3% YoY. This includes construction costs, which rose 48.6%, reflecting higher levels of capital improvements made to concessioned assets during the period. Excluding construction costs, operating costs and expenses increased 3.1% to Ps.942.9 million.

Cost of Services rose 1.7% YoY, mainly due to higher legal fees, partially offset by a decline in maintenance and energy expenses. 

Administrative expenses increased by 14.0% YoY, principally as a result of higher salaries and professional fees.

The 5.3% increase in the Technical Assistance fee paid to ITA reflects EBITDA growth in Mexico, excluding extraordinary items in the quarter, a factor in the calculation of the fee.

Concession Fees, which include fees paid to the Mexican government, rose 4.2%, mainly due to an increase in regulated revenues, a factor in the calculation of the fee.

Depreciation and Amortization increased 1.8% YoY, reflecting higher investments to-date.

Mexico Consolidated Comprehensive Financing Gain (Loss)

Table 11: Mexico Comprehensive Financing Gain (Loss)


Third Quarter

%
Chg.


Nine-Months

%
Chg.


2018

2019


2018

2019

Interest Income

70,836

78,385

10.7


251,529

264,400

5.1

Interest Expense

(114,677)

(101,770)

(11.3)


(351,684)

(309,136)

12.1

Foreign Exchange Gain (Loss), Net

(39,479)

70,735

n/a


32,906

60,725

84.5

Total

(83,320)

47,350

n/a


(67,249)

15,989

n/a

ASUR's Mexico operations reported a Ps.47.4 million Comprehensive Financing Gain, compared to an Ps.83.3 million loss in 3Q18. Mexican operations reported a foreign exchange gain of Ps.70.7 million in the quarter, resulting from the 1.14% quarterly average Mexican peso depreciation against the U.S. dollar on a lower foreign currency net asset position, compared with a Ps.39.5 million foreign exchange loss in 3Q18, resulting from the 3.8% quarterly average Mexican peso appreciation during that period and a higher foreign currency net asset position.

In addition, interest expense declined 11.3% YoY to Ps.101.8 million as the Company paid down debt between June and November 2018. Furthermore, interest income increased 10.7%, reflecting a higher cash balance.

Mexico Operating Profit and EBITDA





Table 12: Mexico Operating Profit & EBITDA










Third Quarter

%
Chg.


Nine-Months

%
Chg.



2018

2019


2018

2019


Total Revenue

2,585,641

2,745,561

6.2


7,762,541

8,315,658

7.1


Total Revenues Excluding Construction Revenues

2,493,314

2,608,329

4.6


7,637,346

8,124,424

6.4


Operating Profit

1,578,964

1,665,430

5.5


4,994,286

5,329,300

6.7


Operating Margin

61.1%

60.7%

(41 bps)


64.3%

64.1%

(25 bps)


Adjusted Operating Margin 1

63.3%

63.9%

52 bps


65.4%

65.6%

20 bps


Net Profit 2

1,072,267

1,206,695

12.5


3,525,768

3,767,755

6.9


EBITDA

1,748,064

1,837,658

5.1


5,500,592

5,844,534

6.3


EBITDA Margin

67.6%

66.9%

(67 bps)


70.9%

70.3%

(58 bps)


Adjusted EBITDA Margin 3

70.1%

70.5%

34 bps


72.0%

71.9%

(8 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 Net Income for 3Q19 and 3Q18 include gains of Ps.64.3 million and Ps.48.8 million, respectively, rom the participation in the results of Aerostar in Puerto Rico. Airplan in Colombia contributed with gains of Ps.118.1 million and Ps.97.6 million in 3Q19 and 3Q18, respectively.


3 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.


Mexico reported an Operating Profit of Ps.1,665.4 million in 3Q19, resulting in an Operating Margin of 60.7% compared with 61.1% in 3Q18 mainly as a result of a YoY increase in construction works in 3Q19.

Adjusted Operating Margin in 3Q19, 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 excluding construction services revenues, was 63.9%, compared to 63.3% in 3Q18 reflecting higher cost dilution.

EBITDA increased 5.1% to Ps.1,837.7 million from Ps.1,748.1 million in 2Q18, resulting in an EBITDA Margin of 66.9% in 3Q19, compared with 67.6% in 3Q18.

During 3Q19, ASUR's operations in Mexico recognized Ps.137.2 million in "Construction Revenues," a year-on-year increase of 48.6%, 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 of/or improvements to concessioned assets, increased 34 bps to 70.5%.

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 accumulated regulated revenues at its Mexican operations as of September 30, 2019 totaled Ps.4,988.9 million, with an average tariff per workload unit of Ps.189.9 (December 2018 pesos), accounting for approximately 60.8% 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.  

Mexico Capital Expenditures

During 3Q19, ASUR's operations in Mexico made capital investments of Ps.339.4 million in connection with the Company's plan to modernize its Mexican airports pursuant to its master development plans. This compares with capex of Ps.102.8 million in 3Q18. Accumulated capex for 9M19 amounted to Ps.542.3 million, compared to Ps.329.7 million in 9M18. 

Review of Puerto Rico Operations

As of September 30, 2019, the valuation of ASUR's investment in Aerostar in accordance with IFRS 3 "Business Combinations" resulted in the following effects on the balance sheet: i) the recognition of a net intangible asset of Ps.6,013.5 million, ii) goodwill of Ps.887.2 (net of an impairment of Ps.4,719.1 million), iii) deferred taxes of Ps.601.4 million, and iv) a minority interest of Ps.5,366.2 million within stockholders' equity.

Table 13: Puerto Rico Revenues & Commercial Revenues Per Passenger






In thousands of Mexican pesos










Third Quarter

%
Chg


Nine - Months

%
Chg



2018

2019


2018

2019


Total Passenger (in thousands)

2,227

2,354

5.7


6,363

7,072

11.2











Total Revenues

692,466

808,251

16.7


2,166,832

2,444,942

12.8


Aeronautical Services

433,814

460,754

6.2


1,297,806

1,376,422

6.1


Non-Aeronautical Services

242,769

294,383

21.3


716,170

848,199

18.4


Construction Revenues

15,883

53,114

234.4


152,856

220,321

44.1


Total Revenues Excluding Construction Revenues

676,583

755,137

11.6


2,013,976

2,224,621

10.5











Total Commercial Revenues

240,567

292,373

21.5


708,901

840,516

18.6


Commercial Revenues from Direct Operations

50,183

60,012

19.6


146,523

180,204

23.0


Commercial Revenues Excluding Direct Operations

190,384

232,361

22.0


562,378

660,312

17.4











Total Commercial Revenues per Passenger

108.0

124.2

14.9


111.4

118.9

6.7


Commercial Revenues from Direct Operations per Passenger 1

22.5

25.5

13.1


23.0

25.5

10.6


Commercial Revenues Excl. Direct Operations per Passenger

85.5

98.7

15.4


88.4

93.4

5.6


Figures in pesos at the average exchange rate Ps.19.8584= US$1.00








1 Represents ASUR´s operations in convenience stores in Puerto Rico.
























Puerto Rico Revenues

Total Puerto Rico Revenues for 3Q19 increased 16.7% YoY to Ps.808.2 million, mainly due to the following increases:

  • 6.2% in revenues from aeronautical services reflecting the 5.7% increase in passenger traffic;
  • 21.3% in revenues from non-aeronautical services, principally reflecting the 21.5% increase in commercial revenues; and
  • 234.4% in construction services revenues reflecting higher capital investments in 3Q19

Commercial Revenues per Passenger increased to Ps.124.2 from Ps.108.0 in 3Q18.

Thirteen commercial spaces were opened at LMM Airport over the last 12 months, as shown in Table 15. More details of these openings can be found on page 20 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: Puerto Rico Commercial Revenue Performance


Table 15: Puerto Rico Summary Retail and Other
Commercial Space Opened since September 30, 2018

Business Line

YoY Chg


Type of Commercial Space 1

# of
Spaces
Opened

3Q19

9M19


Advertising Revenues

200.0%

140.5%


Retail Operations

6

Car Rental Revenues

42.7%

23.9%


Food and Beverage Operations

3

Retail Operations

21.8%

24.6%


Car Rental Revenues

1

Ground Transportation

17.9%

129.1%


Other Revenue

1

Food and Beverage Operations

10.0%

14.6%


Duty Free

1

Duty Free

4.0%

4.0%


Advertising Revenues

1

Parking Lot Fees

(1.8%)

(2.3%)


Total Commercial Spaces

13

Other Revenue

(19.7%)

(4.8%)




Total Commercial Revenues

21.5%

18.6%


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

Puerto Rico Operating Costs and Expenses

Table 16: Puerto Rico Operating Costs & Expenses








In thousands of Mexican pesos









Third Quarter

%
Chg


Nine - Months

%
Chg


2018

2019


2018

2019

Cost of Services

313,962

350,902

11.8


966,316

994,186

2.9

Concession Fees

32,028

36,313

13.4


96,459

106,302

10.2

Depreciation and Amortization

150,253

170,664

13.6


462,327

497,937

7.7

Operating Costs and Expenses Excluding Construction Costs

496,243

557,879

12.4


1,525,102

1,598,425

4.8

Construction Costs

15,883

53,114

234.4


152,856

220,321

44.1

Total Operating Costs & Expenses

512,126

610,993

19.3


1,677,958

1,818,746

8.4

Figures in pesos at the average exchange rate Ps.19.8584= US$1.00

Total Operating Costs and Expenses at LMM Airport in 3Q19, increased 19.3% YoY to Ps.611.0 million. During 3Q19, Aerostar reported construction costs of Ps.53.1 million, reflecting capital investments in concessioned assets. Excluding construction costs, operating costs and expenses increased 12.4% to Ps.557.9 million.

Cost of Services increased 11.8% YoY, or by Ps.36.9 million mainly reflecting higher payroll and professional fees.

Concession Fees paid to the Puerto Rican government increased YoY by Ps.4.3 million, to Ps.36.3 million from Ps.32.0 million in 3Q18. In line with the concession agreement, starting in 2018, the concession fee is based on revenues and impacts results.

Depreciation and Amortization increased YoY by 13.6%, or Ps.20.4 million, principally reflecting higher investments in 2018.

Puerto Rico Comprehensive Financing Gain (Loss)

Table 17: Puerto Rico Comprehensive Financing Gain (Loss)

In thousands of Mexican pesos


Third Quarter

% Chg.


Nine-Months

% Chg.


2018

2019


2018

2019

Interest Income

3,809

4,801

26.0


4,786

11,787

146.3

Interest Expense

(127,533)

(128,351)

(0.6)


(381,086)

(380,921)

0.0

Total

(123,724)

(123,550)

0.1


(376,300)

(369,134)

1.9

 Figures in pesos at the average exchange rate Ps.19.8584= US$1.00

During 3Q19, LMM Airport reported a Ps.123.6 million Comprehensive Financing Loss, compared with a Ps.123.7 million loss in 3Q18, mainly reflecting interest rate movements and the impact from the valuation to present value of future obligations under IFRIC 12 and NIC 37.

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 September 30, 2019, the remaining balance was US$47.0 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 Ports 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 September 30, 2019, had not been utilized.

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

Puerto Rico Operating Profit and EBITDA

Table 18: Puerto Rico Operating Profit & EBITDA

In thousands of Mexican pesos









Third Quarter

% Chg.


Nine-Months

% Chg.


2018

2019


2018

2019

Total Revenue

692,466

808,251

16.7


2,166,832

2,444,942

12.8

Total Revenues Excluding Construction Revenues

676,583

755,137

11.6


2,013,976

2,224,621

10.5

Other Income






204,074

n/a

Operating Profit

180,340

197,258

9.4


488,874

830,270

69.8

Operating Margin

26.0%

24.4%

(164 bps)


22.6%

34.0%

1140 bps

Adjusted Operating Margin 1

26.7%

26.1%

(53 bps)


24.3%

37.3%

1305 bps

Net Profit

46,301

64,509

39.3


87,344

433,177

395.9

EBITDA

329,682

367,921

11.6


981,305

1,329,939

35.5

EBITDA Margin

47.6%

45.5%

(209 bps)


45.3%

54.4%

911 bps

Adjusted EBITDA Margin 2

48.7%

48.7%

(1 bps)


48.7%

59.8%

1106 bps

Figures in pesos at the average exchange rate Ps.19.8584= US$1.00 








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 at Puerto Rico in 3Q19 increased to Ps.197.3 million, with Operating Margin of 24.4% in 3Q19 compared with 26.0% in 3Q18.

EBITDA increased 11.6% to Ps.367.9 million from Ps.329.7 million in 3Q18. EBITDA Margin contracted to 45.5% from 47.6% in 3Q18, while the adjusted EBITDA Margin, excluding IFRIC 12, remained unchanged YoY at 48.7%.

Puerto Rico Capital Expenditures

During 3Q19, Aerostar invested Ps.59.4 million to modernize LMM Airport, compared with investments of Ps.245.6 million in 3Q18. Accumulated capex for 9M19 ammounted to Ps.238.4 million compared with Ps.645.9 million invested in 9M18. 

Puerto Rico Tariff Regulation

The Airport Use Agreement signed by Aerostar, the airlines serving LMM Airport, and the Puerto Rico Ports 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 increases 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.

Review of Colombia Operations

The following discussion compares Airplan's independent results for the three- and nine-month periods ended September 30, 2018 and 2019.

The valuation of ASUR's investment in Airplan in accordance with IFRS 3 "Business Combinations" resulted in the following effects on the balance sheet as of September 30, 2019: i) the recognition of a net intangible asset of Ps.1,337.0 million, ii) goodwill of Ps.1,504.9, iii) deferred taxes of Ps.212.0 million, and iv) Ps.630.4 million from the recognition of bank loans at fair value.

Table 19: Airplan, Colombia Revenues & Commercial Revenues Per Passenger





In thousands of Mexican pesos









Third Quarter

% Chg.


Nine-Months

% Chg.


2018

2019


2018

2019

Total Passenger (in thousands)

2,872

3,247

13.1


7,849

8,983

14.5









Total Revenues

403,940

552,454

36.8


1,556,638

1,516,395

(2.6)

Aeronautical Services

321,357

367,786

14.4


934,194

1,039,989

11.3

Non-Aeronautical Services

100,476

137,784

37.1


289,910

370,151

27.7

Construction Revenues 1

(17,893)

46,884

n/a


332,534

106,255

(68.0)

Total Revenues Excluding Construction Revenues

421,833

505,570

19.9


1,224,104

1,410,140

15.2

Total Commercial Revenues

100,467

137,004

36.4


288,494

365,822

26.8

Total Commercial Revenues per Passenger

35.0

42.2

20.6


36.8

40.7

10.8

Figures in pesos at an average exchange rate of COP172.0571 = Ps.1.00


Note: For purpose of this table, approximately 71.4 and 54.9 thousand transit and general aviation passengers are included in 3Q18 and 3Q19, and 167.6 and 175.9 thousand transit and general aviation passengers are included in 9M18 and 9M19.


1 Construction revenues for Airplan in 3Q18 include the actual construction revenues which is equal to the construction cost of Ps.63.1 million and an estimate to the downside of income derived from the valuation of the intangible to present value (construction income) of Ps.80.9 million, according to IFRIC 12. Construction revenues for Airplan 3Q19 are equal to the construction cost of Ps.46.9 million.  

Colombia Revenues

Total Colombia Revenues for 3Q19 increased 36.8% YoY to Ps.552.5 million. Excluding construction services revenues, revenues rose 19.9% mainly reflecting the following increases:

  • 14.4% in revenues from aeronautical services; and
  • 37.1% in revenues from non-aeronautical services, mainly due to the 36.4% increase in commercial revenues.

Commercial Revenues per Passenger increased 20.6% year-on-year to Ps.42.2 from Ps.35.0 in 3Q18.

As shown in Table 21, during the last twelve months, 20 new commercial spaces were opened in Colombia. More details of these openings can be found on page 20 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 20: Colombia Commercial Revenue
Performance




Table 21: Colombia Summary Retail and Other
Commercial Space Opened since September 30, 2018


Business Line

YoY Chg


Type of Commercial Space 1

# of
Spaces
Opened


3Q19

9M19



Ground Transportation

161.9%

45.4%


Retail Operations

8


Car Rental Revenues

160.4%

116.4%


Other Revenue

11


Retail Operations

116.5%

81.4%


Banking and Currency Exchange Services

1


Parking Lot Fees

79.0%

58.1%


Total Commercial Spaces

20


Food and Beverage Operations

43.2%

40.4%





Other Revenue

11.2%

7.6%


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



Teleservices

1.8%

4.7%



Duty Free

100.0%

100.0%





Banking and Currency Exchange Services

(0.0%)

(0.8%)




Advertising Revenues

(9.5%)

(4.6%)



Total Commercial Revenues

36.4%

26.8%





















Table 22: Airplan, Colombia Operating Costs and Expenses








In thousands of Mexican pesos 









Third Quarter

% Chg.


Nine-Months

% Chg.


2018

2019


2018

2019

Cost of Services

139,774

137,907

(1.3)


374,681

427,469

14.1

Technical Assistance

1,598

1,559

(2.4)


5,419

4,407

(18.7)

Concession Fees

79,887

96,081

20.3


232,070

269,176

16.0

Depreciation and Amortization

222,375

106,101

(52.3)


546,561

377,347

(31.0)

Operating Costs and Expenses Excluding Construction Costs

443,634

341,648

(23.0)


1,158,731

1,078,399

(6.9)

Construction Costs

63,075

46,884

(25.7)


229,794

106,255

(53.8)

Total Operating Costs & Expenses

506,709

388,532

(23.3)


1,388,525

1,184,654

(14.7)


Note: Figures in pesos at an average exchange rate of COP172.0571 = Ps.1.00

Total Operating Costs and Expenses in Colombia declined 23.3% YoY in 3Q19 to Ps.388.5 million. Excluding construction costs, operating costs and expenses declined 23.0% to Ps.341.6 million.

Cost of Services declined 1.3% YoY, or Ps.1.9 million, mainly reflecting higher legal fees in 3Q18 partially offset by an increase in the maintenance provision for future replacement of assets in 3Q19, in line with IFRIC 12.

Construction Costs declined 25.7% YoY to Ps.46.9 million, reflecting lower investments in complementary works to concessioned assets during the period.

Concession Fees, which include fees paid to the Colombian government, increased 20.3% YoY, mainly reflecting higher regulated and non-regulated revenues during the period.

Depreciation and Amortization declined by 52.3%, or Ps.116.2 million, principally reflecting a change in amortization methodology, which starting January 2019 is on a straight-line basis instead of the percentage of completion method which implied variations in the accumulated amortization rate of the concession.

Colombia Comprehensive Financing Gain (Loss)

Table 23: Airplan, Colombia, Comprehensive Financing Gain (Loss)

In thousands of Mexican pesos


Third Quarter

% Chg.


Nine-Months

% Chg.


2018

2019


2018

2019

Interest Income

1,760

5,711

224.5


4,542

44,482

879.3

Interest Expense

(74,978)

(64,958)

13.4


(233,938)

(195,893)

16.3

Foreign Exchange Gain (Loss), Net

(13)

(347)

(2,569.2)


189

(145)

n/a

Total

(73,231)

(59,594)

18.6


(229,207)

(151,556)

(33.9)

  Figures in pesos at an average exchange rate of COP172.0571 = Ps.1.00




During 3Q19, Airplan reported a Ps.59.6 million Comprehensive Financing Loss, compared with a Ps.73.2 million loss in 3Q18, mainly reflecting lower interest expenses in 3Q19 resulting from debt payments in 3Q18 and 4Q18.

On June 1, 2015, Airplan entered into 12-Year Syndicated Loan Facility with eight banks with a 3-year grace period, with a net balance of Ps.2,972.9 million. Airplan made a Ps.44.3 million capital payment during the quarter.

Colombia Operating Profit and EBITDA

Table 24: Airplan, Colombia Profit & EBITDA

In thousands of Mexican pesos









Third Quarter

% Chg.


Nine-Months

% Chg.


2018

2019


2018

2019

Total Revenue

403,940

552,454

36.8


1,556,638

1,516,395

(2.6)

Total Revenues Excluding Construction Revenues

421,833

505,570

19.9


1,224,104

1,410,140

15.2

Operating Profit

(102,769)

163,922

n/a


168,113

331,741

97.3

Operating Margin

(25.4%)

29.7%

5511 bps


10.8%

21.9%

1108 bps

Adjusted Operating Margin 1

(24.4%)

32.4%

5679 bps


13.7%

23.5%

979 bps

Net Profit

(111,993)

69,228

n/a


(41,051)

182,156

n/a

EBITDA

200,574

270,024

34.6


611,934

709,088

15.9

EBITDA Margin

49.7%

48.9%

(78 bps)


39.3%

46.8%

745 bps

Adjusted EBITDA Margin 2

47.5%

53.4%

586 bps


50.0%

50.3%

29 bps






Figures in pesos at an average exchange rate of COP172.0571 = Ps.1.00










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.








Airplan reported an Operating Gain of Ps.163.9 million in 3Q19, compared with an operating loss of Ps.102.8 million in 3Q18. Operating Margin expanded to 29.7% in 3Q19 from negative 25.4% in 3Q18. Adjusted Operating Margin, which excludes the impact of IFRIC 12 with respect to construction or improvements to concessioned assets, increased to 32.4% in 3Q19 from negative 24.4% in 3Q18, reflecting a 36.8% increase in revenues along with a 23.3% decline in costs.

During 3Q19 EBITDA increased 34.6% to Ps.270.0 million from Ps.200.6 million in 3Q18, mainly reflecting a Ps.148.5 million increase in revenues while expenses declined Ps.118.2 million during the period.

EBITDA Margin declined to 48.9% in 3Q19, from 49.7% in 3Q18. Adjusted EBITDA Margin, which excludes the impact of IFRIC 12 with respect to construction or improvements to concessioned assets, increased to 53.4% in 3Q19, from 47.5% in 3Q18.

Colombia Capital Expenditures

During 3Q19, Airplan made capital expenditures of Ps.46.9 million compared with Ps.14.9 million in 3Q18. Accumulated capex for 9M19 ammounted to Ps.106.2 million, compared with Ps.394.2 million in 9M18.

Colombia Tariff Regulation

Functions of the Special Administrative Unit of Civil Aeronautics include establishing and collecting fees, tariffs, and rights for the provision of aeronautical and airport services or those that are generated by the concessions, authorizations, licenses, or any other type of income or property. As a result, Resolution 04530, issued on September 21, 2007, establishes the tariffs for the rights and the rates conceded to the concessionaire of the following airports: José María Córdova of Rionegro, Enrique Olaya Herrera of Medellín, Los Garzones of Montería, El Caraño of Quibdó, Antonio Roldán Betancourt of Carepa, and Las Brujas of Corozal. This resolution also established the methodology to update and the mechanisms to collect such fees, tariffs, and rights. Airplan's regulated revenues for 3Q19 amounted to Ps.367.8 million.

Definitions

Concession Services Agreements (IFRIC 12 interpretation). In Mexico and Puerto Rico, ASUR is required by IFRIC 12 to include in its income statement an income line, "Construction Revenues," 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. In Colombia, "Construction Revenues" include the recognition of the revenue to which the concessionaire is entitled for carrying out the infrastructure works in the development of the concession, while "Construction Costs" represents the actual costs incurred in the execution of such additions or improvements to the concessioned assets. 

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.

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. EBITDA 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 excluding construction services revenues for Mexico, Puerto Rico, and Colombia 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. In Mexico and Puerto Rico, 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. In Colombia, construction revenues do have an impact on EBITDA, as construction revenues include a reasonable margin over the actual cost of construction. 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 leading international airport operator with a portfolio of concessions to operate, maintain, and develop 16 airports in the Americas. These comprise nine airports in southeast Mexico, including Cancun Airport, the most important tourist destination in Mexico, the Caribbean, and Latin America, and six airports in northern Colombia, including José María Córdova International Airport (Rionegro), the second busiest airport in Colombia. ASUR is also a 60% JV partner in Aerostar Airport Holdings, LLC, operator of the Luis Muñoz Marín International Airport serving the capital of Puerto Rico, San Juan. San Juan's Airport is the island's primary gateway for international and mainland-US destinations and was the first and currently the only major airport in the US to have successfully completed a public–private partnership under the FAA Pilot Program. Headquartered in Mexico, ASUR 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 Coverage

In accordance with Mexican Stock Exchange Internal Rules Article 4.033.01, ASUR reports that the stock is covered by the following broker-dealers: Actinver Casa de Bolsa, Banorte, Barclays, BBVA Bancomer, BofA Merrill Lynch, BX+, Bradesco, BTG Pactual, 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










Mexico Passenger Traffic 1










Third Quarter

% Chg


Nine - Months

% Chg



2018

2019


2018

2019

Domestic Traffic

4,342,594

4,469,498

2.9


11,725,081

12,367,374

5.5

CUN

Cancun

2,493,382

2,484,484

(0.4)


6,525,887

6,703,534

2.7

CZM

Cozumel

50,933

49,573

(2.7)


123,926

147,802

19.3

HUX

Huatulco

184,182

206,173

11.9


512,051

575,881

12.5

MID

Merida

571,059

655,168

14.7


1,625,425

1,883,658

15.9

MTT

Minatitlan

50,126

34,696

(30.8)


144,693

105,315

(27.2)

OAX

Oaxaca

218,120

273,004

25.2


618,995

740,248

19.6

TAP

Tapachula

80,991

88,949

9.8


226,050

269,869

19.4

VER

Veracruz

379,428

363,427

(4.2)


1,060,565

1,035,408

(2.4)

VSA

Villahermosa

314,373

314,024

(0.1)


887,489

905,659

2.0

International Traffic

3,960,965

3,863,729

(2.5)


13,433,337

13,416,487

(0.1)

CUN

Cancun

3,757,924

3,675,731

(2.2)


12,663,402

12,671,074

0.1

CZM

Cozumel

87,049

57,406

(34.1)


328,763

286,592

(12.8)

HUX

Huatulco

6,491

6,591

1.5


108,559

107,659

(0.8)

MID

Mérida

53,348

50,592

(5.2)


167,846

157,264

(6.3)

MTT

Minatitlan

2,176

2,262

4.0


5,533

5,987

8.2

OAX

Oaxaca

25,681

40,992

59.6


73,221

109,149

49.1

TAP

Tapachula

3,801

3,925

3.3


12,096

10,295

(14.9)

VER

Veracruz

18,865

19,943

5.7


50,607

52,349

3.4

VSA

Villahermosa

5,630

6,287

11.7


23,310

16,118

(30.9)

Total Traffic México

8,303,559

8,333,227

0.4


25,158,418

25,783,861

2.5

CUN

Cancun

6,251,306

6,160,215

(1.5)


19,189,289

19,374,608

1.0

CZM

Cozumel

137,982

106,979

(22.5)


452,689

434,394

(4.0)

HUX

Huatulco

190,673

212,764

11.6


620,610

683,540

10.1

MID

Merida

624,407

705,760

13.0


1,793,271

2,040,922

13.8

MTT

Minatitlan

52,302

36,958

(29.3)


150,226

111,302

(25.9)

OAX

Oaxaca

243,801

313,996

28.8


692,216

849,397

22.7

TAP

Tapachula

84,792

92,874

9.5


238,146

280,164

17.6

VER

Veracruz

398,293

383,370

(3.7)


1,111,172

1,087,757

(2.1)

VSA

Villahermosa

320,003

320,311

0.1


910,799

921,777

1.2










US Passenger Traffic, San Juan Airport (LMM)








Third Quarter

% Chg


Nine - Months

% Chg



2018

2019


2018

2019

SJU Total 1

2,226,595

2,354,372

5.7


6,362,573

7,072,180

11.2

Domestic Traffic


1,957,414

2,098,971

7.2


5,672,204

6,315,138

11.3

International Traffic

269,181

255,401

(5.1)


690,369

757,042

9.7










Colombia, Passenger Traffic Airplan 









Third Quarter

% Chg


Nine - Months

% Chg



2018

2019


2018

2019

Domestic Traffic

2,393,455

2,699,836

12.8


6,516,614

7,457,666

14.4

MDE

Medellín (Rionegro)

1,700,850

1,964,307

15.5


4,586,746

5,409,532

17.9

EOH

Medellín 

276,977

291,980

5.4


779,603

801,648

2.8

MTR

Montería

254,985

261,804

2.7


682,242

734,571

7.7

APO

Carepa

88,169

99,093

12.4


259,320

279,172

7.7

UIB

Quibdó

51,916

59,030

13.7


146,438

163,387

11.6

CZU

Corozal

20,558

23,622

14.9


62,265

69,356

11.4

International Traffic

407,275

492,749

21.0


1,164,804

1,349,885

15.9

MDE

Medellín (Rionegro)

407,275

492,749

21.0


1,164,804

1,349,885

15.9

EOH

Medellín 

-

-

-


-

-

-

MTR

Montería

-

-

-


-

-

-

APO

Carepa

-

-

-


-

-

-

UIB

Quibdó

-

-

-


-

-

-

CZU

Corozal

-

-

-


-

-

-

Total Traffic Colombia

2,800,730

3,192,585

14.0


7,681,418

8,807,551

14.7

MDE

Medellín (Rionegro)

2,108,125

2,457,056

16.6


5,751,550

6,759,417

17.5

EOH

Medellín 

276,977

291,980

5.4


779,603

801,648

2.8

MTR

Montería

254,985

261,804

2.7


682,242

734,571

7.7

APO

Carepa

88,169

99,093

12.4


259,320

279,172

7.7

UIB

Quibdó

51,916

59,030

13.7


146,438

163,387

11.6

CZU

Corozal

20,558

23,622

14.9


62,265

69,356

11.4










1Passenger figures for Mexico and Colombia exclude transit and general aviation passengers, and SJU include transit passengers and general aviation.

 

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

Comercial Spaces




ASUR Retail and Other Commercial Space Opened since September 30, 20181


Business Name

Type

Opening Date

MEXICO

Cancun

Mini Market (Tienda ODC)

Retail

March 2019

Todo a $10 usd (Bisuteria)

Retail

March 2019

Business Lounge (T4) Internacional

Other Revenue

April 2019

Business Lounge (T4) Nacional

Other Revenue

April 2019

Sunglass Hut

Retail

April 2019

Gold Elements

Retail

May 2019

Bijoux

Retail

September 2019

Tapachula



Alquiladora de Vehiculos Automotores

Car Rental

December 2018

SAN JUAN, PUERTO RICO



Cabrera Car and Truck Rental

Car Rental

October 2018

Sunny Planet

Retail

December 2018

VIP Lounge

Other Revenue

December 2018

Carl's Jr.

Food and Beverage

January 2019

Invicta 

Retail

May 2019

Invicta 

Retail

May 2019

The Destillery 

Retail

June 2019

Metropol 

Food and Beverage

June 2019

Grab at the Gate 

Food and Beverage

June 2019

Innovative Media

Advertising

August 2019

Sunglasses

Duty Free

September 2019

Baggage Storage

Retail

September 2019

Sunny Planet

Retail

September 2019

COLOMBIA



Rionegro



SAPIA CI SAS

Retail

December 2018

SAPIA CI SAS

Retail

January 2019

AEROREPUBLICA S.A.

Other Revenue

April 2019

ABC AEROLINEAS SA DE CV SUCURSAL COLOMBIA

Other Revenue

May 2019

AIR EUROPA LINEAS AEREAS SOCIEDAD ANONIMA

Other Revenue

May 2019

Olaya herrera



CENTRAL CHARTER DE COLOMBIA

Other Revenue

November 2018

ELKIN LEONCIO CASTAÑO CIRO

Retail

December 2018

DEPARTAMENTO DE ANTIOQUIA

Other Revenue

April 2019

Monteria



SAPIA CI SAS

Retail

December 2018

SAPIA CI SAS

Retail

December 2018

DAVIVIENDA S.A

Banking and Currency Exchange Services

February 2019

Quibdo



SATENA

Other Revenue

October 2018

MARCAPASOS S.A.S

Other Revenue

May 2019

RENTERIA PALACIO EDWARD FRANCISCO

Food and Beverage

May 2019

Corozal



FIGUEROA GOMEZ WISTON

Food and Beverage

September 2018

AEROVIAS DEL CONTINENTE AMERICANO S.A. AVIANCA

Other Revenue

October 2018

AEROVIAS DEL CONTINENTE AMERICANO S.A. AVIANCA

Other Revenue

October 2018

SECURITAS COLOMBIA S.A.

Other Revenue

October 2018

SERVICIOS AEROPORTUARIOS INTEGRADOS - SAI  LTDA

Other Revenue

October 2018

Centro de Servicios

CUEROS VELEZ S.A.S

Retail

October 2018

COMPAÑIA MANUFACTURERA MANISOL S A

Retail

February 2018

* 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

3Q
2018

3Q 2018 Per
Workload Unit

3Q
2019

3Q 2019 Per
Workload Unit


YoY %
Chg.

Per Workload
Unit YoY %
Chg.

Mexico








Cancun 1







Aeronautical Revenues

1,102,521

174.2

1,102,236

176.8


(0.0)

1.5

Non-Aeronautical Revenues

911,544

144.0

966,568

155.0


6.0

7.6

Construction Services Revenues

79,647

12.6

37,218

6.0


(53.3)

(52.4)

Total Revenues

2,093,712

330.8

2,106,022

337.7


0.6

2.1

Operating Profit

1,271,160

200.8

1,314,352

210.8


3.4

5.0

EBITDA

1,384,972

218.8

1,430,486

229.4


3.3

4.8

Merida







Aeronautical Revenues

119,730

177.6

147,429

193.5


23.1

9.0

Non-Aeronautical Revenues

30,357

45.0

34,064

44.7


12.2

(0.7)

Construction Services Revenues

651

1.0

11,274

14.8


1,631.8

1,380.0

Other 2

23

-

23

-


-

n/a

Total Revenues

150,761

223.7

192,790

253.0


27.9

13.1

Operating Profit

74,543

110.6

97,535

128.0


30.8

15.7

EBITDA

86,576

128.5

109,625

143.9


26.6

12.0

Villahermosa







Aeronautical Revenues

52,994

159.6

68,145

204.0


28.6

27.8

Non-Aeronautical Revenues

15,931

48.0

15,050

45.1


(5.5)

(6.0)

Construction Services Revenues

2,888

8.7

8,987

26.9


211.2

209.2

Other 2

26

0.1

25

0.1


(3.8)

-

Total Revenues

71,839

216.4

92,207

276.1


28.4

27.6

Operating Profit

32,273

97.2

43,373

129.9


34.4

33.6

EBITDA

39,824

120.0

51,032

152.8


28.1

27.3

Other Airports 3







Aeronautical Revenues

220,699

196.4

234,295

200.9


6.2

2.3

Non-Aeronautical Revenues

39,538

35.2

40,542

34.8


2.5

(1.1)

Construction Services Revenues

9,141

8.1

79,753

68.4


772.5

744.4

Other 2

65

0.1

68

0.1


4.6

-

Total Revenues

269,443

239.7

354,658

304.2


31.6

26.9

Operating Profit

109,483

97.4

114,399

98.1


4.5

0.7

EBITDA

145,161

129.1

150,609

129.2


3.8

0.1

Holding & Service Companies 4







Construction Services Revenues

-

n/a

-

n/a


n/a

n/a

Other 2

357,241

n/a

384,599

n/a


7.7

n/a

Total Revenues

357,241

n/a

384,599

n/a


7.7

n/a

Operating Profit

91,505

n/a

95,771

n/a


4.7

n/a

EBITDA

91,531

n/a

95,906

n/a


4.8

n/a

Consolidation Adjustment Mexico







Consolidation Adjustment

(357,355)

n/a

(384,715)

n/a


7.7

n/a

Total Mexico







Aeronautical Revenues

1,495,944

176.8

1,552,105

182.6


3.8

3.3

Non-Aeronautical Revenues

997,370

117.9

1,056,224

124.3


5.9

5.4

Construction Services Revenues

92,327

10.9

137,232

16.1


48.6

47.7

Total Revenues

2,585,641

305.7

2,745,561

323.1


6.2

5.7

Operating Profit

1,578,964

186.7

1,665,430

196.0


5.5

5.0

EBITDA

1,748,064

206.7

1,837,658

216.2


5.1

4.6

San Juan Puerto Rico, US 5








Aeronautical Revenues

433,814

n/a

460,754

n/a


6.2

n/a

Non-Aeronautical Revenues

242,769

n/a

294,383

n/a


21.3

n/a

Construction Services Revenues

15,883

n/a

53,114

n/a


234.4

n/a

Total Revenues

692,466

n/a

808,251

n/a


16.7

n/a

Operating Profit

180,340

n/a

197,258

n/a


9.4

n/a

EBITDA

329,682

n/a

367,921

n/a


11.6

n/a

Consolidation Adjustment San Juan







Consolidation Adjustment

-

n/a

-

n/a


n/a

n/a

Colombia 6








Aeronautical Revenues

321,357

n/a

367,786

n/a


14.4

n/a

Non-Aeronautical Revenues

100,476

n/a

137,784

n/a


37.1

n/a

Construction Services Revenues

(17,893)

n/a

46,884

n/a


(362.0)

n/a

Total Revenues

403,940

n/a

552,454

n/a


36.8

n/a

Operating Profit

(102,769)

n/a

163,922

n/a


(259.5)

n/a

EBITDA

200,574

n/a

270,024

n/a


34.6

n/a

Consolidation Adjustment Colombia







Consolidation Adjustment


n/a

-

n/a


n/a

n/a

CONSOLIDATED ASUR








Aeronautical Revenues

2,251,115

n/a

2,380,645

n/a


5.8

n/a

Non-Aeronautical Revenues

1,340,615

n/a

1,488,391

n/a


11.0

n/a

Construction Services Revenues

90,317

n/a

237,230

n/a


162.7

n/a

Total Revenues

3,682,047

n/a

4,106,266

n/a


11.5

n/a

Operating Profit

1,656,535

n/a

2,026,610

n/a


22.3

n/a

EBITDA

2,278,320

n/a

2,475,603

n/a


8.7

n/a









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 operation of  San Juan Airport, Puerto Rico, US for 3Q19.

6 Reflects the results of operation of  Airplan, Colombia, for 3Q19.

 

 

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

Consolidated Statement of Income from January 1 to September 30,  2019 and 2018

Thousands of mexican pesos 









Item

9M

9M

%


3Q

3Q

%

2018

2019

Chg


2018

2019

Chg

Revenues








Aeronautical Services

6,715,133

7,181,875

7.0


2,251,115

2,380,645

5.8

Non-Aeronautical Services

4,160,293

4,577,310

10.0


1,340,615

1,488,391

11.0

Construction Services

610,585

517,810

(15.2)


90,317

237,230

162.7

Total Revenues

11,486,011

12,276,995

6.9


3,682,047

4,106,266

11.5









Operating Expenses








Cost of Services

2,669,519

2,841,388

6.4


936,997

980,145

4.6

Cost of Construction

507,845

517,810

2.0


171,285

237,230

38.5

General and Administrative Expenses

173,738

185,212

6.6


56,436

64,333

14.0

Technical Assistance

295,026

312,318

5.9


93,636

98,442

5.1

Concession Fee

673,424

742,512

10.3


225,304

250,513

11.2

Depreciation and Amortization

1,515,186

1,390,518

(8.2)


541,854

448,993

(17.1)

Total Operating Expenses

5,834,738

5,989,758

2.7


2,025,512

2,079,656

2.7









Other Revenues


204,074

n/a













Operating Income

5,651,273

6,491,311

14.9


1,656,535

2,026,610

22.3









Comprehensive Financing Cost

(672,756)

(504,701)

25.0


(280,275)

(135,794)

51.5









Income Before Income Taxes

4,978,517

5,986,610

20.2


1,376,260

1,890,816

37.4









Provision for Income Tax

1,322,065

1,564,665

18.4


427,884

513,291

20.0

Provision for Asset Tax

699


n/a


233


n/a

Deferred Income Taxes

83,691

38,857

(53.6)


(58,431)

37,093

163.5









Net Income for the Year

3,572,062

4,383,088

22.7


1,006,574

1,340,432

33.2









Majority Net Income

3,529,012

4,209,817

19.3


988,054

1,314,628

33.1

Non- controlling interests 

43,050

173,271

302.5


18,520

25,804

39.3









Earning per Share

11.7634

14.0327

19.3


3.2935

4.3821

33.1

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

5.9608

7.1108

19.3


1.6689

2.2205

33.1

Exchange Rate per Dollar Ps. 19.7345








 

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

Consolidated Balance Sheet as of  September 30, 2019 and December 31, 2018

Thousands of mexican pesos 






Item

September
2019

December
2018

Variation

%

Assets 





Current Assets





Cash and Cash Equivalents

6,196,806

4,584,507

1,612,299

35.2

Cash and cash equivalents restricted

205,897

47,332

158,565

335.0

Accounts Receivable, net

355,769

793,110

(437,341)

(55.1)

Recoverable Taxes and Other Current Assets

958,659

575,963

382,696

66.4

Total Current Assets

7,717,131

6,000,912

1,716,219

28.6






Non Current Assets





Machinery, Furniture and Equipment, net

505,510

558,480

(52,970)

(9.5)

Intangible assets, airport concessions and Goodwill-Net

48,722,829

49,586,322

(863,493)

(1.7)

Document Receivable

26,549

36,107

(9,558)

(26.5)

Total  Assets

56,972,019

56,181,821

790,198

1.4






Liabilities and Stockholders' Equity





Current Liabilities





Trade Accounts Payable

247,117

313,576

(66,459)

(21.2)

Bank Loans and short term debt

277,847

500,105

(222,258)

(44.4)

Accrued Expenses and Others Payables

1,676,202

1,594,541

81,661

5.1

Total Current Liabilities

2,201,166

2,408,222

(207,056)

(8.6)






Long Term Liabilities





Bank Loans

6,905,296

7,042,598

(137,302)

(1.9)

Long Term Debt

6,791,384

6,957,678

(166,294)

(2.4)

Deferred Income Taxes

3,089,010

3,081,667

7,343

0.2

Employee Benefits

11,208

10,267

941

9.2

Total Long Term Liabilities

16,796,898

17,092,210

(295,312)

(1.7)


-


-


Total Liabilities

18,998,064

19,500,432

(502,368)

(2.6)






Stockholders' Equity





Capital Stock

7,767,276

7,767,276

-

-

Legal Reserve

1,616,533

1,366,867

249,666

18.3

Mayority Net Income for the Period

4,209,817

4,987,601

(777,784)

(15.6)

Cumulative Effect of Conversion of Foreign Currency

75,219

189,791

(114,572)

(60.4)

Retained Earnings 

16,531,952

14,794,650

1,737,302

11.7

Non- Controlling interests 

7,773,158

7,575,204

197,954

2.6

Total Stockholders' Equity

37,973,955

36,681,389

1,292,566

3.5






Total Liabilities and Stockholders' Equity

56,972,019

56,181,821

790,198

1.4

Exchange Rate per Dollar Ps. 19.7345





 

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

 Consolidated Statement of Cash flow as of September 30,  2019 and 2018

Thousands of mexican pesos









Item

9M

9M

%


3Q

3Q

%

2018

2019

Chg


2018

2019

Chg

Operating Activities








Income Before Income Taxes

4,978,517

5,986,610

20.2


1,376,260

1,890,816

37.4

Items Related with Investing Activities:








Depreciation and Amortization

1,515,186

1,390,518

(8.2)


541,854

448,993

(17.1)

Interest Income

(209,010)

(272,744)

30.5


(58,148)

(73,708)

26.8

Interest payables

925,895

838,025

(9.5)


298,930

279,891

(6.4)

Foreign Exchange Gain (loss), net unearned

(10,705)

(13,244)

23.7


(11,027)

(30,561)

177.1

Sub-Total

7,199,883

7,929,165

10.1


2,147,869

2,515,431

17.1

Increase in Trade Receivables

425,016

491,537

15.7


273,321

221,563

(18.9)

Decrease in Recoverable Taxes and other Current Assets

(27,207)

(115,393)

324.1


51,066

63,404

24.2

Income Tax Paid

(1,662,922)

(1,627,112)

(2.2)


(563,155)

(510,378)

(9.4)

Trade Accounts Payable

(186,240)

(69,983)

(62.4)


(146,162)

(108,745)

(25.6)









Net Cash Flow Provided by Operating Activities

5,748,530

6,608,214

15.0


1,762,939

2,181,275

23.7









Investing Activities








Investments in Associates

(402,578)


n/a


(186,167)


n/a

Loans granted to Associates








Restricted cash

102,896

(158,772)

n/a



71,098

n/a

Investments in Machinery, Furniture and Equipment, net

(1,369,809)

(886,888)

(35.3)


(363,379)

(445,755)

22.7

Interest Income

199,683

253,538

27.0


52,581

68,908

31.1









Net Cash Flow used by Investing Activities

(1,469,808)

(792,122)

(46.1)


(496,965)

(305,749)

(38.5)









Excess Cash to Use in Financing Activities

4,278,722

5,816,092

35.9


1,265,974

1,875,526

48.1









Bank Loans paid


(110,634)

n/a



(44,288)

n/a

Long term debt paid


(205,744)

n/a



(103,054)

n/a

Interest paid

(2,549,246)

(887,415)

(65.2)


(581,952)

(382,638)

(34.2)

Dividends Paid

(2,034,000)

(3,000,000)

47.5





Increase in capital

196,199


n/a


196,199


n/a









Net Cash Flow used by Financing Activities

(4,387,047)

(4,203,793)

(4.2)


(385,753)

(529,980)

37.4









Net Increase in Cash and Cash Equivalents

(108,325)

1,612,299

n/a


880,221

1,345,546

52.9









Cash and Cash Equivalents at Beginning of Period

4,677,454

4,584,507

(2.0)


3,688,908

4,851,260

31.5









Cash and Cash Equivalents at the End of Period

4,569,129

6,196,806

35.6


4,569,129

6,196,806

35.6

 

Cision View original content:http://www.prnewswire.com/news-releases/asur-3q19-passenger-traffic-increased-0-4-yoy-in-mexico-5-7-in-puerto-rico-and-14-0-in-colombia-300944319.html

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