Le Lézard
Classified in: Tourism and vacations, Transportation, Business
Subjects: ERN, CCA

ASUR 3Q17 Passenger Traffic Increased 8.1% YoY in Mexico and Declined 5.5% in San Juan, Puerto Rico


MEXICO CITY, Oct. 19, 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 nine-month periods ended September 30, 2017.

Highlights for the Quarter

 

 

Table 1: Financial & Operational Highlights 1



Third Quarter

% Chg


2016

2017

Financial Highlights




Total Revenue

2,355,757

3,230,104

37.1

- Mexico

2,355,757

2,606,720

10.7

- San Juan

0

623,384

n/a

Commercial Revenues per PAX

94.6

99.5

5.2

- Mexico

94.6

100.5

6.3

- San Juan

0

95.9

n/a

EBITDA

1,374,135

1,916,603

39.5

Net Income

916,798

1,145,613

25.0

Majority Net Income

916,798

1,100,695

20.1

Earnings per Share (in pesos)

3.0560

3.6690

20.1

Earnings per ADS (in US$)

1.6829

2.0205

20.1

Capex

(410,051)

(313,395)

(23.6)

Cash & Cash Equivalents

3,521,380

7,678,970

118.1

Net Debt

639,061

7,033,478

1000.6

Net Debt/ LTM EBITDA

0.1

1.0

749.0

Operational Highlights




Passenger Traffic




- Mexico

7,199,539

7,783,057

8.1

- San Juan

2,268,840

2,144,760

-5.5

 

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 nine-month periods ended September 30, 2017, and the equivalent three- and nine-month periods September 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.18.1590. Definitions for EBITDA, Adjusted EBITDA margin, Majority Net Income, domestic and international traffic can be found on page 12 of this report.

 

 


3Q17 Earnings Call

Date & Time: Friday, October 20, 2017 at 10:00 AM US ET; 9:00 AM CT


Dial-in: 1-888-747-4666 (US & Canada); 1-719-457-1035 (International & Mexico). Access Code: 9652350.


Replay: October 20, 2017 at 1:00 PM US ET, ending at 11:59 PM US ET on October 25, 2017. Dial-in number:    1-844-512-2921 (US & Canada) 1-412-312-6671 (International & Mexico); Access Code 9652350

 

Passenger Traffic

ASUR's total passenger traffic in 3Q17 rose 4.9% YoY to 9.9 million passengers, driven by an 8.1% increase in Mexico, partially offset by a 5.5% decline in traffic in Puerto Rico.  The decline in passenger traffic at Luis Muñoz Marín Airport in San Juan, Puerto Rico reflects the impact of Hurricane Maria, which resulted in operations at this airport being suspended on September 19, 2017 at 19:30 pm and resuming on a limited basis on September 21, 2017 with 10 flights, increasing progressively to 41 daily flights at the end of September 2017. The airport is still operating on a limited basis.

The 8.1% YoY growth in passenger traffic achieved in Mexico reflects increases of 6.9% and 9.4% in domestic and international traffic, respectively. Cancun was the main driver behind traffic growth, reporting increases of 9.5% and 9.4% 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 3Q17 declined 5.5% YoY, reflecting reductions of 4.3% and 12.2% in domestic and international traffic, respectively as explained above.

Tables with detailed passenger traffic information for each airport can be found on page 14 of this report.

Table 2: Passenger Traffic Summary









Third Quarter

% Chg.


Nine-Months

% Chg.

2016

2017


2016

2017

Total Mexico

7,199,539

7,783,057

8.1


21,325,666

23,530,519

10.3

- Cancun

5,400,565

5,909,015

9.4


16,181,408

17,996,106

11.2

- 8 Other Airports

1,798,974

1,874,042

4.2


5,144,258

5,534,413

7.6

Domestic Traffic

3,675,805

3,929,206

6.9


9,505,566

10,641,806

12.0

- Cancun

2,059,770

2,254,689

9.5


5,047,917

5,839,906

15.7

- 8 Other Airports

1,616,035

1,674,517

3.6


4,457,649

4,801,900

7.7

International Traffic

3,523,734

3,853,851

9.4


11,820,100

12,888,713

9.0

- Cancun

3,340,795

3,654,326

9.4


11,133,491

12,156,200

9.2

- 8 Other Airports

182,939

199,525

9.1


686,609

732,513

6.7

Total San Juan, Puerto Rico (1)

2,268,840

2,144,760

(5.5)


6,923,233

6,865,311

(0.8)

Domestic Traffic

1,943,163

1,858,789

(4.3)


6,062,216

6,005,732

(0.9)

International Traffic

325,677

285,971

(12.2)


861,017

859,579

(0.2)

Total Traffic

9,468,379

9,927,817

4.9


28,248,899

30,395,830

7.6

Domestic Traffic

5,618,968

5,787,995

3.0


15,567,782

16,647,538

6.9

International Traffic

3,849,411

4,139,822

7.5


12,681,117

13,748,292

8.4

 

1 On May 26, 2017, ASUR increased its ownership stake in LMM Airport from 50% to 60%. 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 3Q16 and 3Q17 as well as 9M16 and 9M17.


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









Third Quarter

%Chgr


Nine-Months

% Chg

2016

2017


2016

2017

Total Revenues

2,355,757

3,230,104

37.1


6,676,900

8,642,149

29.4

Aeronautical Services

1,157,026

1,732,467

49.7


3,393,075

4,587,720

35.2

Non-Aeronautical Services

770,212

1,088,079

41.3


2,330,395

3,110,280

33.5

- Commercial Revenues

686,020

992,211

44.6


2,085,293

2,824,359

35.4

Total Revenues Excluding Construction Revenues

1,927,238

2,820,546

46.4


5,723,470

7,698,000

34.5

Construction Revenues

428,519

409,558

(4.4)


953,430

944,149

(1.0)

Total Operating Costs & Expenses

1,120,332

1,574,494

40.5


2,948,668

3,740,868

26.9

Operating Profit

1,235,425

1,655,610

34.0


3,728,232

4,901,281

31.5

Operating Margin

52.4%

51.3%

-119 bps


55.8%

56.7%

+88 bps

Adjusted Operating Margin (1)

64.1%

58.7%

-541 bps


65.1%

63.7%

-147 bps

EBITDA

1,374,135

1,916,603

39.5


4,127,594

5,475,755

32.7

EBITDA Margin

58.3%

59.3%

+100 bps


61.8%

63.4%

+154 bps

Adjusted EBITDA Margin (2)

71.3%

68.0%

-335 bps


72.1%

71.1%

-98 bps

Net Income

916,798

1,145,613

25.0


2,711,756

3,636,319

34.1

Majority Net Income

916,798

1,100,695

20.1


2,711,756

3,571,974

31.7

Earnings per Share

3.0560

3.6690

20.1


9.0392

11.9066

31.7

Earnings per ADS in US$

1.6829

2.0205

20.1


4.9778

6.5568

31.7









Total Commercial Revenues per Passenger (3)

94.6

99.5

5.2


97.0

105.8

9.0

Commercial Revenues from Direct Operations per
Passenger (4)

16.7

19.3

15.7


15.8

18.9

19.7

Commercial Revenues Excl. Direct Operations per Passenger

77.9

80.2

3.0


81.2

86.9

6.9









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 vrevenues 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 3Q17 increased 37.1% YoY to Ps.3,230.1 million, principally due to increases of:

This was partially offset by a 4.4% decline in revenues from construction services in Mexico as a result of lower 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 46.4% YoY to Ps.2,820.5 million. Total revenues at Aerostar for the quarter represented 22.1% of ASUR's consolidated revenues excluding revenues from construction services.

Commercial Revenues in 3Q17 rose 44.6% YoY, principally due to the 4.9% increase in total passenger traffic, and the contribution of Ps.205.7 million in commercial revenues at LMM Airport for 3Q17. Commercial revenue growth in Mexico was mainly driven by increases in Duty Free, Food and Beverages, and Retail.

Consolidated Commercial Revenues per Passenger rose to Ps.99.5 in 3Q17, from Ps.94.6 in 3Q16, with Mexico contributing with Ps.100.5 in 3Q17 and LMM Airport with Ps.95.9 revenues per passenger in 3Q17.

Consolidated Operating Costs and Expenses

Consolidated Operating Costs and Expenses for 3Q17 increased 40.5% YoY to Ps.1,574.5 million, with 23.9% of consolidated costs and expenses for the quarter attributable to Aerostar. Excluding construction costs, however, operating costs and expenses rose 68.4% to 1,164.9 million.

Cost of Services rose 98.7%, 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 results contributed with 39.4% of cost of services in 3Q17.

Construction Costs declined 4.4% YoY, mainly due to lower levels of capital improvements made to the Mexican concessioned assets during the period.

G&A Expenses, which reflect administrative expenses in Mexico, declined 2.0% YoY.

The Technical Assistance fee paid to ITA increased 14.0% YoY, reflecting EBITDA growth, in Mexico -excluding extraordinary items, a factor in the calculation of the fee.

Concession fees, which include fees paid to the Mexican government and Puerto Rican Authorities, rose 17.8%, mainly due to an increase in regulated revenues in Mexico, a factor in the calculation of the fee.

Depreciation and Amortization increased 78.9% and mainly reflects capitalized investments. Aerostar contributed with 42.2% of depreciation and amortization in 3Q17.

Consolidated Operating Profit and EBITDA

Consolidated Operating Profit in 3Q17 increased 34.0% to Ps.1,655.6 million. Operating Margin for 3Q17 declined to 51.3% from 52.4% in 3Q16, mainly as a result of the 37.1% increase in revenues along with a higher increase in costs and expenses. Aerostar's results represented 15.0% of consolidated operating profit for 3Q17.

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 58.7% in 3Q17 compared with 64.1% in 3Q16.

EBITDA rose 39.5% to Ps.1,916.6 million in 3Q17, reflecting higher operating leverage. Aerostar results also contributed with 18.2% of EBITDA for the period. During 3Q17, ASUR recognized Ps.409.5 million in Construction Revenues, a year-on-year decline of 4.4%, due to lower capital expenditures and investments in concessioned assets. As a result, 3Q17 EBITDA Margin was 59.3% compared to 58.3% in 3Q16.

Adjusted EBITDA Margin, however, which excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets in Mexico, was 68.0% in 3Q17 compared to 71.3% in 3Q16.

Consolidated Comprehensive Financing Gain (Loss)

Table 4: Consolidated Comprehensive Financing Gain (Loss)









Third Quarter

% Chg


Nine-Months

% Chg


2016

2017


2016

2017


Interest Income

46,652

54,102

16.0


128,993

163,953

27.1


Interest Expense

(31,825)

(206,164)

547.8


(93,111)

(318,884)

242.5


Foreign Exchange Gain (Loss), Net

(29,073)

49,226

(269.3)


(79,981)

50,524

(163.2)


Total

(14,246)

(102,836)

621.9


(44,099)

(104,407)

136.8


















 

In 3Q17, ASUR reported a Ps.102.8 million Comprehensive Financing Loss, compared to Ps.14.2 million loss in 3Q16. Interest expense rose by Ps.174.3 million during the period, reflecting mainly a higher debt balance resulting from the full consolidation of Aerostar along with the increase in interest rates during the period. Aerostar's interest expenses for 3Q17 totaled Ps.123.5 million. Interest income increased by Ps.7.4 million, as a result of a higher cash balance and the increase in interest rates.

In 3Q17, ASUR reported a foreign exchange gain of Ps.49.2 million, resulting from 1.8% 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.29.1 million foreign exchange loss in 3Q16 resulting from the 2.7% quarterly average Mexican peso depreciation during that period.

Income Taxes

Income Taxes for 3Q17 rose by Ps.73.6 million year-over-year, principally due to the following factors:

Majority Net Income

Majority Net Income for 3Q17 increased by 20.1% to Ps.1,100.7 million, up from Ps.916.8 million in 3Q16. Earnings per common share for the quarter were Ps.3.6690 and earnings per ADS (EPADS) were US$2.0205 (one ADS represents ten series B common shares). This compares with earnings per share of Ps.3.0560 and EPADS of US$1.6829 for the same period last year. The higher majority net income principally reflects the 4.9% growth in total passenger traffic and ASUR's increased ownership in Aerostar. Aerostar results are consolidated on a line by line basis since June 1, 2017. During 3Q17, Aerostar's results were consolidated on a line by line basis, while in 3Q16 ASUR reported a Ps.29.1 million gain corresponding to its participation in Aerostar.

Consolidated Financial Position

On September 30, 2017, airport concessions represented 76.5% of the Company's total assets, with current assets representing 21.9% and other assets representing 1.6%.

As of September 30, 2017, ASUR had cash and cash equivalents of Ps.7,679.0 million; a 119.55% increase from Ps.3,497.6 million at December 31, 2016. Aerostar contributed with Ps.635.5 million in cash and cash equivalents in 3Q17.

Stockholders' equity at the close of 3Q17 was Ps.26,062.4 million and total liabilities were Ps.17,462.1 million, representing 59.9% and 40.1% of total assets, respectively. Deferred liabilities represented 9.1% of ASUR's total liabilities.

Total Debt at the end of the quarter increased to Ps.14,712.4 million, from Ps.4,160.4 million in 3Q16, principally reflecting debt at Aerostar as shown on Tables 5 and 6, as well as the Ps.4,000 million loan at Cancun Airport. A total of Ps.10,712.4 million of ASUR's debt, or 72.8% of total debt is denominated in U.S. dollars.

The Net Debt to LTM EBITDA ratio stood at 1.0x at the end of 3Q17, while the Interest Coverage ratio was 8.8x as of September 30, 2017. This compares with Net Debt to LTM EBITDA and Interest Coverage Ratio of 0.1x and 42.0x as of September 30, 2016, respectively.

 

Table 5: Consolidated Debt Indicators


September 30,
2016

June 30, 2017

September 30,
2017

Leverage




Total Debt/ LTM EBITDA (Times) (1)

0.8

1.7

2.2

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

0.1

1.3

1.0

Interest Coverage Ratio (3)

42.0

42.0

8.8

Total Debt

4,160,441

10,894,391

14,712,448

Short-Term Debt

24,439

56,806

4,053,751

Long-Term Debt

4,136,002

10,837,585

10,658,697

Cash & Cash Equivalents

3,521,380

2,829,843

7,678,970

Total Net Debt(4)

639,061

8,064,548

7,033,478







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 & Cash 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 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 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

 Cancún

 Qtly. Amort.

 Libor +
1.85%

-

4.7

20.7

50.9

42.0

-

118.3


 5 Yr-Syndicated Credit
Facility

 Cancún

 Qtly. Amort.

 Libor +
1.75%

-

4.6

20.6

50.8

41.9

-

118.0


 1 Yr-Syndicated Credit
Facility 1

 Cancún

 Qtly. Amort.

 Tiie +
0.60%

4.5

230.6

-

-

-

-

235.1


Total




15.4

250.7

51.8

112.4

106.4

329.6

866.3



1.   Peso denominated credit facility.





















 

Capital Expenditures

During 3Q17, ASUR's capital investments totaled Ps.313.4 million. Of this, Ps.287.1 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, that is on track to open in 4Q17. In addition, during 3Q17, the Company invested Ps.26.3 million at the LMM Airport in Puerto Rico. Accumulated consolidated capex for 9M17 totaled Ps.705.3 million.

Review of Mexico Operations

Table 7: Mexico Revenues & Commercial Revenues Per Passenger








Third Quarter

% Chg


Nine-Months

% Chg

2016

2017


2016

2017

Total Passengers (in thousands)

7,254

7,825

7.9


21,491

23,664

10.1









Total Revenues

2,355,757

2,606,720

10.7


6,676,900

7,796,657

16.8

Aeronautical Services

1,157,026

1,316,489

13.8


3,393,075

4,021,915

18.5

Non-Aeronautical Services

770,212

880,673

14.3


2,330,395

2,830,593

21.5

- Commercial Revenues

686,020

786,531

14.7


2,085,293

2,547,209

22.2

Construction Revenues

428,519

409,558

(4.4)


953,430

944,149

(1.0)

Total Revenues Excluding Construction Revenues

1,927,238

2,197,162

14.0


5,723,470

6,852,508

19.7









Total Commercial Revenues

686,020

786,531

14.7


2,085,293

2,547,209

22.2

Commercial Revenues from Direct Operations (1)

120,935

144,495

19.5


339,978

439,797

29.4

Commercial Revenues Excluding Direct Operations

565,085

642,036

13.6


1,745,315

2,107,412

20.7









Total Commercial Revenues per Passenger

94.6

100.5

6.3


97.0

107.6

10.9

Commercial Revenues from Direct Operations per Passenger (1)

16.7

18.5

10.8


15.8

18.6

17.5

Commercial Revenues Excl. Direct Operations per Passenger

77.9

82.1

5.3


81.2

89.1

9.7









 

Note: For purposes of this table, approximately 54.4 and 42.1 thousand transit and general aviation passengers are included in 3Q16 and 3Q17, respectively, while 164.9 and 133.8 thousand transit and general aviation passengers are included in 9M16 and 9M17.

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

 

Mexico Revenues

Mexico Revenues for 3Q17 rose 10.7% YoY to Ps.2,606.7 million, principally due to increases of:

These increases were partially offset by a 4.4% decline in revenues from construction services that resulted from lower capital expenditures and other investments in concessioned assets during the period.

Commercial Revenues in the quarter rose 14.7% year-over-year, principally due to the 8.1% increase in total passenger traffic and reported increases across all categories as shown on table 8. Commercial Revenues per Passenger, in turn, increased 6.3% to Ps.100.5 in 3Q17 from Ps.94.6 in 3Q16.

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 three commercial spaces at Cancun airport and eight commercial spaces at its other eight airports. More details of these openings can be found on page 15 of this report.

Table 8: Mexico Commercial Revenues




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

Business Line (1)

YoY Chg.


Type of Commercial Space (1)

# of  spaces opened

3Q17

9M17


Duty Free

23.2%

32.4%


Cancun

3

Food and Beverage Operations

19.9%

29.9%


Retail

3

Retail Operations

13.1%

16.8%




Car Rental Revenues

11.9%

17.0%




Advertising Revenues

-8.5%

10.4%


8 Other Airports

8

Banking and Currency Exchange Services

12.7%

19.4%


Retail

2

Ground Transportation

4.7%

11.3%


Duty Free

4

Teleservices

26.2%

22.6%


VIP Lounge

2

Parking Lot Fees

-2.6%

0.2%


Total Mexico

11

Other Revenues

12.2%

22.5%


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


Total Commercial Revenues

14.7%

22.2%
















 

Mexico Operating Costs and Expenses

Table 10: Mexico Operating Costs & Expenses









Third Quarter

% Chg


Nine-Months

% Chg

2016

2017


2016

2017

Cost of Services

346,841

417,576

20.4


971,076

1,145,691

18.0

Administrative

50,824

49,832

(2.0)


154,119

158,526

2.9

Technical Assistance

72,341

82,489

14.0


217,318

263,083

21.1

Concession Fees

87,075

100,097

15.0


258,698

308,901

19.4

Depreciation and Amortization

134,732

139,248

3.4


394,027

417,192

5.9

Operating Costs and Expenses Excluding Construction Costs

691,813

789,242

14.1


1,995,238

2,293,393

14.9

Construction Costs

428,519

409,558

(4.4)


953,430

944,149

(1.0)

Total Operating Costs & Expenses

1,120,332

1,198,800

7.0


2,948,668

3,237,542

9.8









 

Total Mexico Operating Costs and Expenses for 3Q17 increased 7.0% year-over-year. This includes construction costs, which declined 4.4%, reflecting lower levels of capital improvements made to concessioned assets during the period. Excluding construction costs, operating costs and expenses rose 14.1% to Ps.789.2 million.

Cost of Services rose 20.4% mainly due to higher energy, security and maintenance expenses. Higher cost of sales from convenience stores directly operated by ASUR and professional fees in connection with several projects, also contributed to the increase in cost of services.  Administrative expenses declined by 2.0% YoY.

The 14.0% increase in 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 15.0%, mainly due to an increase in regulated revenues, a factor in the calculation of the fee.

Depreciation and Amortization increased 3.4% YoY, mainly reflecting capitalized investments.

Mexico Consolidated Comprehensive Financing Gain (Loss)

Table 11: Mexico Comprehensive Financing Gain (Loss)










Third Quarter

%Chg


Nine-Months

% Chg


2016

2017


2016

2017

Interest Income

46,652

64,522

38.3


128,993

180,087

39.6


Interest Expense

(31,825)

(93,113)

192.6


(93,111)

(169,689)

82.2


Foreign Exchange Gain (Loss), Net

(29,073)

49,226

(269.3)


(79,981)

50,524

(163.2)


Total

(14,246)

20,635

(244.8)


(44,099)

60,922

(238.1)


 

In 3Q17, ASUR's Mexico operations reported a Ps.20.6 million Comprehensive Financing Gain, compared to a Ps.14.2 million loss in 3Q16. This was mainly due to a foreign exchange gain in 3Q17 of Ps.49.2 million, reflecting a 1.8% 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.29.1 million foreign exchange loss in 3Q16, resulting from the 2.7% quarterly average Mexican peso depreciation during that period.

Interest income in Mexico increased by 38.3% YoY to Ps.64.5 million in 3Q17, reflecting a higher cash balance and higher interest rates, while interest expense rose by 192.6% to Ps.93.1 million during the period.

Mexico Operating Profit and EBITDA

Table 12: Mexico Operating Profit & EBITDA









Third Quarter

% Chg


Nine-Months

% Chg

2016

2017


2016

2017

Total Revenue

2,355,757

2,606,720

10.7


6,676,900

7,796,657

16.8

Total Revenues Excluding Construction Revenues

1,927,238

2,197,162

14.0


5,723,470

6,852,508

19.7

Operating Profit

1,235,425

1,407,920

14.0


3,728,232

4,559,115

22.3

Operating Margin

52.4%

54.0%

+157 bps


55.8%

58.5%

+264 bps

Adjusted Operating Margin (1)

64.1%

64.1%

-2 bps


65.1%

66.5%

139 bps

Net Income

916,798

1,100,696

20.1


2,711,756

3,571,974

31.7

EBITDA

1,374,135

1,567,176

14.0


4,127,594

4,996,339

21.0

EBITDA Margin

58.3%

60.1%

+179 bps


61.8%

64.1%

+226 bps

Adjusted EBITDA Margin (2)

71.3%

71.3%

+3 bps


72.1%

72.9%

+80 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 3Q17 increased 14.0% to Ps.1,407.9 million. Operating Margin for the quarter increased 157 bps YoY to 54.0% principally as a result higher operating leverage given YoY increases of 10.7% in revenues and 7.0% 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, remained relatively unchanged at 64.1% in 3Q17.

EBITDA rose 14.0% to Ps.1,567.2 million from Ps.1,374.1 million in 3Q16, reflecting higher operating leverage. 3Q17 EBITDA Margin expanded to 60.1% from 58.3% in 3Q16.

During 3Q17, ASUR recognized Ps.409.6 million in "Construction Revenues," a year-on-year decline of 4.4%, due to lower 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, remained unchanged YoY at 71.3%.

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 September 30, 2017 totaled Ps.4,218,56 million, with an average tariff per workload unit of Ps.171.91 (pesos of December 2016). ASUR's regulated revenues for 9M17 accounted for approximately 61.56% 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, consolidated results as presented above reflect line by line consolidation of Aerostar results starting in June 1, 2017, while prior to that, Aerostar's results were accounted for by the equity method.

The following discussion compares the stand-alone results of Aeorstar for the three-month period ended September 30, 2017 (in which Aerostar was consolidated with ASUR) against the three-month period ended Setpember 30, 2016 (in which Aerostar was not consolidated with ASUR and instead was accounted for by the equity method).   ASUR is not presenting results for the nine-month periods ended September 30, 2017 and 2016 as ASUR did not consolidate Aerostar during the totality of this period.

Table 13: Puerto Rico Revenues & Commercial Revenues Per Passenger

(in thousands of Mexican pesos)





Third Quarter

% Var



2016

2017



 Not Consolidated

Consolidated


Total Passenger (thousands)

2,269

2,145

(5.5)







Total Revenues

629,664

623,384

(1.0)


Aeronautical Services

415,223

415,979

0.2


Non-Aeronautical Services

214,441

207,405

(3.3)


- Commercial Revenues

211,510

205,680

(2.8)


Total Commercial Revenues

211,510

205,680

(2.8)


Commercial Revenues from Direct Operations (1)

48,566

47,757

(1.7)


Commercial Revenues Excluding Direct Operations

162,944

157,923

(3.1)


Total Commercial Revenues per Passenger

93.2

95.9

2.9


Commercial Revenues from Direct Operations per Passenger (1)

21.4

22.3

4.0


Commercial Revenues Excl. Direct Operations per Passenger

71.8

73.6

2.5



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


Note: Figures in pesos at an average exchange rate of Ps.17.8166





 

Puerto Rico Revenues

Total Puerto Rico Revenues for 3Q17 fell 1.0% YoY to Ps.623.4 million, principally due to the combination of:

Commercial Revenues in the quarter declined 2.8%% year-over-year, principally reflecting the impact from Hurricane Maria, which resulted in operations at this airport being suspended on September 19, 2017 at 19:30 pm and resuming on a limited basis on September 21, 2017 with 10 flights, increasing progressively to 41 daily flights at the end of September 2017. The airport is still operating on a limited basis.

Commercial Revenues per Passenger rose to Ps.95.9 from Ps.93.2 in 3Q16.

No commercial spaces were opened in 3Q17. 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 15 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: San Juan Airport Commercial Revenue Performance 

Table 15: San Juan Airport Summary Retail and Other
Commercial Space Opened since September 30, 2016

Bussines Line

YoY Chg


Type of Commercial Space 1

# of Spaces
Opened

3Q17


Advertising Revenues

41.8%


Retail

3

Other Revenue

45.9%


Food & Beverage

4

Car Rental Revenues

2.2%


Car Rental

1

Food and Beverage Operations

(2.7%)


Other Revenue

3

Retail Operations

(3.0%)


Total Commercial Spaces

11

Duty Free

(6.5%)




Ground Transportation

(11.9%)


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


Parking Lot Fees

(13.7%)




Total Commercial Revenues

(2.8%)




 

Puerto Rico Operating Costs and Expenses

Table 16: Puerto Rico Operating Costs and Expenses

(in thousands of Mexican pesos)



Third Quarter

% Chg

2016

2017

 Not Consolidated

Consolidated

Cost of Services

309,360

271,456

(12.3)

Concession Fees

2,460

2,500

1.6

Depreciation and Amortization

109,789

101,737

(7.3)

Total Operating Costs & Expenses

421,609

375,693

(10.9)






Note: Figures in pesos at an average exchange rate of Ps.17.8166.

 

Total Operating Costs and Expenses at LMM Airport in 3Q17 declined 10.9% YoY to Ps.375.7 million.

Cost of Services declined 12.3% YoY, while Concession Fees, which include fees paid to the Puerto Rican government, rose 1.6%. Depreciation and Amortization declined 7.3%.

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 Comprehensive Financing Gain (Loss)

Table 17: Puerto Rico Comprehensive Financing Gain

(in thousands of Mexican pesos)



Third Quarter

% Chg

2016

2017

 Not Consolidated

Consolidated

Interest Income

23

18

(21.7)

Interest Expense

(136,757)

(123,490)

(9.7)

Total

(136,734)

(123,472)

(9.7)






Note: Figures in pesos at an average exchange rate of Ps.17.8166.

 

During 3Q17, LMM Airport reported a Ps.123.5 million Comprehensive Financing Loss, compared with a Ps.136.7 million loss in 3Q16.

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 US$77.4 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 September 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)





Third Quarter

% Chg


2016

2017


 Not Consolidated

Consolidated

Total Revenue

629,664

623,384

-1.0%

Operating Profit

208,054

247,691

19.1%

Operating Margin

33.0%

39.7%

+669 bps

Net Income

58,287

112,295

92.7%

EBITDA

317,843

349,428

9.9%

EBITDA Margin

50.5%

56.1%

+558 bps





  Note: Figures in pesos at an average exchange rate of Ps.17.8166.




 

Operating Profit in 3Q17 increased 19.1% to Ps.247.7 million, with Operating Margin up 669 bps to 39.7% from 33.0% in 3Q16.

EBITDA rose 9.9% to Ps.349.4 million from Ps.317.8 million in 3Q16 despite the decline in passenger traffic, principally reflecting cost savings during the period. EBITDA Margin rose 558 bps to 56.1% in 3Q17.

Puerto Rico Capital Expenditures

During 3Q17, Aerostar invested Ps.26.3 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.48.6 million in 3Q16.

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.

Impact from Hurricane Maria

On September 20, 2017 Hurricane Maria, category 4, made landfall on Puerto Rico. Operations at Luis Muñoz Marín Airport were suspended on September 19 at 19:30 pm and resuming on a limited basis on September 21, 2017 with 10 flights, increasing progressively to 41 daily flights at the end of September 2017. The airport is still operating on a limited basis.  Airport management is evaluating damages to airport infrastructure and does not have a reasonable estimate yet. Airport infrastructure is insured against material damages with a maximum deductible of US$10 million.

Subsequent Events

ASUR has received regulatory approval to consummate its acquisition of Airplan, S.A.  Airplan has concessions to operate the following airports in Colombia: the Enrique Olaya Herrera Airport and José María Córdova International Airport in Medellín, the Los Garzones Airport in Montería, the Antonio Roldán Betancourt Airport in Carepa, the El Caraño Airport in Quibdó and the Las Brujas Airport in Corozal.   Following consummation of the acquisition, ASUR will own approximately 92.42% of the capital stock of Airplan. The consummation of the Airplan acquisition is expected by the end of October.

ASUR has not yet received regulatory approval to consummate its acquisition of Aeropuertos de Oriente S.A.S. (Oriente).   In light of the pending regulatory approvals for the acquisition of Oriente, the sellers and ASUR have agreed to negotiate in good faith an adjustment to the purchase price and the terms and conditions of their acquisition agreement, and to use commercially reasonable efforts to obtain the relevant regulatory approvals.  Oriente has concessions to operate the following airports in Colombia: the Simón Bolivar International Airport in Santa Marta, the Almirante Padilla Airport in Riohacha, the Alfonso López Pumarejo Airport in Valledupar, the Camilo Daza International Airport in Cúcuta, the Palonegro International Airport in Bucaramanga and the Yariguíes Airport in Barrancabermeja.  If the Oriente acquisition is consummated, ASUR will own approximately 97.26% of the capital stock of Oriente.

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 Coverage
In 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










Mexico Passenger Traffic 1










Third Quarter 

% Chg


Nine - Months

% Chg



2016

2017


2016

2017


Domestic
Traffic


3,675,805

3,929,206

6.9


9,505,566

10,641,806

12.0

CUN

Cancun

2,059,770

2,254,689

9.5


5,047,917

5,839,906

15.7

CZM

Cozumel

41,333

43,356

4.9


104,642

98,664

(5.7)

HUX

Huatulco

146,121

171,582

17.4


400,768

481,415

20.1

MID

Merida

471,356

480,906

2.0


1,280,057

1,417,209

10.7

MTT

Minatitlan

55,931

50,149

(10.3)


168,624

150,493

(10.8)

OAX

Oaxaca

174,802

214,433

22.7


504,107

567,122

12.5

TAP

Tapachula

73,037

63,519

(13.0)


212,384

205,911

(3.0)

VER

Veracruz

342,196

346,098

1.1


920,511

963,283

4.6

VSA

Villahermosa

311,259

304,474

(2.2)


866,556

917,803

5.9

International
Traffic


3,523,734

3,853,851

9.4


11,820,100

12,888,713

9.0

CUN

Cancun

3,340,795

3,654,326

9.4


11,133,491

12,156,200

9.2

CZM

Cozumel

79,378

80,753

1.7


321,087

328,791

2.4

HUX

Huatulco

4,168

4,843

16.2


90,308

102,878

13.9

MID

Mérida

46,430

53,961

16.2


122,500

146,650

19.7

MTT

Minatitlan

3,722

1,826

(50.9)


9,397

5,267

(44.0)

OAX

Oaxaca

14,372

23,493

63.5


44,270

56,221

27.0

TAP

Tapachula

3,073

3,713

20.8


8,525

10,824

27.0

VER

Veracruz

20,502

19,955

(2.7)


56,979

52,134

(8.5)

VSA

Villahermosa

11,294

10,981

(2.8)


33,543

29,748

(11.3)

Total Traffic
México


7,199,539

7,783,057

8.1


21,325,666

23,530,519

10.3

CUN

Cancun

5,400,565

5,909,015

9.4


16,181,408

17,996,106

11.2

CZM

Cozumel

120,711

124,109

2.8


425,729

427,455

0.4

HUX

Huatulco

150,289

176,425

17.4


491,076

584,293

19.0

MID

Merida

517,786

534,867

3.3


1,402,557

1,563,859

11.5

MTT

Minatitlan

59,653

51,975

(12.9)


178,021

155,760

(12.5)

OAX

Oaxaca

189,174

237,926

25.8


548,377

623,343

13.7

TAP

Tapachula

76,110

67,232

(11.7)


220,909

216,735

(1.9)

VER

Veracruz

362,698

366,053

0.9


977,490

1,015,417

3.9

VSA

Villahermosa

322,553

315,455

(2.2)


900,099

947,551

5.3










US Passenger Traffic, San Juan Airport (LMM)









Third Quarter 

% Chg


Nine - Months

% Chg



2016

2017



2016

2017


SJU Total 1


2,268,840

2,144,760

(5.5)


6,923,233

6,865,311

(0.8)

Domestic Traffic


1,943,163

1,858,789

(4.3)


6,062,216

6,005,732

(0.9)

International Traffic

325,677

285,971

(12.2)


861,017

859,579

(0.2)




























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 3Q16 and 3Q17 as well as 9M16 and 9M17.


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 September 30, 2016 1


Business Name

Type

Opening Date

MEXICO

Cancun

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

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

3Q 
2016

3Q 2016
 Per Workload
Unit

3Q
2017

3Q 2017  
Per Workload
Unit


YoY 
% Chg

YoY % Chg 
Per Workload
Unit 

Mexico








Cancun 1







Aeronautical Revenues

850,458

155.8

977,939

163.4


15.0

4.9

Non-Aeronautical Revenues

697,934

127.9

803,322

134.2


15.1

4.9

Construction Services Revenues

356,606

65.3

357,439

59.7


0.2

(8.6)

     Total Revenues

1,904,998

349.0

2,138,700

357.3


12.3

2.4

Operating Profit

986,632

180.8

1,174,721

196.3


19.1

8.6

EBITDA

1,069,251

195.9

1,259,962

210.5


17.8

7.5

Merida







Aeronautical Revenues

88,202

155.8

97,452

166.3


10.5

6.7

Non-Aeronautical Revenues

23,024

40.7

24,128

41.2


4.8

1.2

Construction Services Revenues

37,265

65.8

21,552

36.8


(42.2)

(44.1)

Other 2

13

-

16

-


23.1

n/a

     Total Revenues

148,504

262.4

143,148

244.3


(3.6)

(6.9)

Operating Profit

41,673

73.6

56,173

95.9


34.8

30.3

EBITDA

51,651

91.3

67,813

115.7


31.3

26.7

Villahermosa







Aeronautical Revenues

47,599

142.5

49,474

151.3


3.9

6.2

Non-Aeronautical Revenues

14,947

44.8

15,940

48.7


6.6

8.7

Construction Services Revenues

14,572

43.6

76

0.2


(99.5)

(99.5)

Other 2

15

-

19

0.1


26.7

n/a

     Total Revenues

77,133

230.9

65,509

200.3


(15.1)

(13.3)

Operating Profit

28,632

85.7

31,620

96.7


10.4

12.8

EBITDA

35,819

107.2

39,103

119.6


9.2

11.6

Other Airports 3







Aeronautical Revenues

170,767

173.9

191,623

183.7


12.2

5.6

Non-Aeronautical Revenues

34,307

34.9

37,284

35.7


8.7

2.3

Construction Services Revenues

20,076

20.4

30,491

29.2


51.9

43.1

Other 2

33

-

39

-


18.2

n/a

     Total Revenues

225,183

229.3

259,437

248.7


15.2

8.5

Operating Profit

79,535

81.0

91,625

87.8


15.2

8.4

EBITDA

113,509

115.6

126,332

121.1


11.3

4.8

Holding & Service Companies 4







Construction Services Revenues

-

n/a

-

n/a


n/a

n/a

Other 2

321,866

n/a

312,954

n/a


(2.8)

n/a

     Total Revenues

321,866

n/a

312,954

n/a


(2.8)

n/a

Operating Profit

98,954

n/a

53,780

n/a


(45.7)

n/a

EBITDA

103,905

n/a

73,965

n/a


(28.8)

n/a

Consolidation Adjustment Mexico







Consolidation Adjustment

(321,927)

n/a

(313,028)

n/a


(2.8)

n/a

Total Mexico







Aeronautical Revenues

1,157,026

157.6

1,316,488

165.8


13.8

5.2

Non-Aeronautical Revenues

770,212

104.9

880,674

110.9


14.3

5.7

Construction Services Revenues

428,519

58.4

409,558

51.6


(4.4)

(11.6)

     Total Revenues

2,355,757

320.9

2,606,720

328.3


10.7

2.3

Operating Profit

1,235,426

168.3

1,407,919

177.3


14.0

5.3

EBITDA

1,374,135

187.2

1,567,175

197.4


14.0

5.4

San Juan Puerto Rico, US 5








Aeronautical Revenues



415,979

468.1


n/a

n/a

Non-Aeronautical Revenues



207,405

233.4


n/a

n/a

Construction Services Revenues



-

-


n/a

n/a

     Total Revenues



623,384

701.5


n/a

n/a

Operating Profit



247,691

278.7


n/a

n/a

EBITDA



349,428

393.2


n/a

n/a

Consolidation Adjustment San Juan







Consolidation Adjustment


n/a

-

n/a


n/a

n/a

CONSOLIDATED ASUR








Aeronautical Revenues

1,157,026

157.6

1,732,467

196.2


49.7

24.5

Non-Aeronautical Revenues

770,212

104.9

1,088,079

123.2


41.3

17.4

Construction Services Revenues

428,519

58.4

409,558

46.4


(4.4)

(20.5)

     Total Revenues

2,355,757

320.9

3,230,104

365.8


37.1

14.0

Operating Profit

1,235,426

168.3

1,655,610

187.5


34.0

11.4

EBITDA

1,374,135

187.2

1,916,603

217.1


39.5

16.0

















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 September 30,  2017 and 2016

Thousands of mexican pesos 









Item

9M

9M

%


3Q

3Q

%

2016

2017

Chg


2016

2017

Chg

Revenues








     Aeronautical Services

3,393,075

4,587,720

35.2


1,157,026

1,732,467

49.7

     Non-Aeronautical Services

2,330,395

3,110,280

33.5


770,212

1,088,079

41.3

     Construction Services

953,430

944,149

(1.0)


428,519

409,558

(4.4)

Total Revenues

6,676,900

8,642,149

29.4


2,355,757

3,230,104

37.1









Operating Expenses








     Cost of Services

971,076

1,508,473

55.3


346,841

689,033

98.7

     Cost of Construction

953,430

944,149

(1.0)


428,519

409,558

(4.4)

     General and Administrative Expenses

154,119

158,526

2.9


50,824

49,832

(2.0)

     Technical Assistance

217,318

263,083

21.1


72,341

82,489

14.0

     Concession Fee

258,698

312,195

20.7


87,075

102,597

17.8

     Depreciation and Amortization

394,027

554,442

40.7


134,732

240,985

78.9

Total Operating Expenses

2,948,668

3,740,868

26.9


1,120,332

1,574,494

40.5









Operating Income

3,728,232

4,901,281

31.5


1,235,425

1,655,610

34.0









Comprehensive Financing Cost

(44,099)

(104,407)

136.8


(14,246)

(102,836)

621.9









Income from results of Joint Venture Accounted by
the Equity Method

137,159

112,345

(18.1)


29,136

-

(100.0)









Income Before Income Taxes

3,821,292

4,909,219

28.5


1,250,315

1,552,774

24.2









     Provision for Income Tax

1,145,737

1,454,150

26.9


381,218

449,994

18.0

     Provision for Asset Tax

699

699

-


233

233

-

     Deferred Income Taxes

(36,900)

(181,949)

393.1


(47,934)

(43,066)

(10.2)









Net Income for the Year

2,711,756

3,636,319

34.1


916,798

1,145,613

25.0









Majority Net Income

2,711,756

3,571,974

31.7


916,798

1,100,695

20.1

Non- controlling interests 

-

64,345

-


-

44,918

-









Earning per Share

9.0392

11.9066

31.7


3.0560

3.6690

20.1

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

4.9778

6.5568

31.7


1.6829

2.0205

20.1









Exchange Rate per Dollar Ps. 18.1590








 

 


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

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

Thousands of mexican pesos 






Item

September
2017

December
2016

Variation

%

Assets 





Current Assets





     Cash and Cash Equivalents

7,678,970

3,497,635

4,181,335

119.5

     Accounts Receivable, net

219,577

464,872

(245,295)

(52.8)

     Recoverable Taxes and Other Current Assets

1,643,348

270,511

1,372,837

507.5

Total Current Assets

9,541,895

4,233,018

5,308,877

125.4






Non Current Assets





     Machinery, Furniture and Equipment, net

448,647

323,099

125,548

38.9

     Airports Concessions, net

33,278,393

20,284,126

12,994,267

64.1

     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

255,556

-

255,556

-

Total  Assets

43,524,491

29,216,091

14,308,400

49.0






Liabilities and Stockholders' Equity





Current Liabilities





     Trade Accounts Payable

129,004

11,401

117,603

1,031.5

     Bank Loans

4,053,751

58,336

3,995,415

6,849.0

     Accrued Expenses and Others Payables

1,028,642

523,446

505,196

96.5

Total Current Liabilities

5,211,397

593,183

4,618,214

778.5






Long Term Liabilities





     Bank Loans

3,841,740

4,402,440

(560,700)

(12.7)

     Long Term Debt

6,816,957

-

6,816,957

-

     Deferred Income Taxes

1,580,846

1,456,020

124,826

8.6

     Employee Benefits

11,146

10,494

652

6.2

Total Long Term Liabilities

12,250,689

5,868,954

6,381,735

108.7






Total Liabilities

17,462,086

6,462,137

10,999,949

170.2






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

3,636,319

3,629,262

7,057

0.2

     Cumulative Effect of Conversion of Foreign Currency

576,142

893,132

(316,990)

(35.5)

     Retained Earnings 

11,170,545

9,571,151

1,599,394

16.7

     Non- Controlling interests 

1,837,121

-

1,837,121

-

Total Stockholders' Equity

26,062,405

22,753,954

3,308,451

14.5






Total Liabilities and Stockholders' Equity

43,524,491

29,216,091

14,308,400

49.0

 

 









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

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

Thousands of mexican pesos









Item

9M

9M

%


3Q

3Q

%

2016

2017

Chg


2016

2017

Chg

Operating Activities








Income Before Income Taxes

3,821,292

4,909,219

28.5


1,250,315

1,552,774

24.2

Items Related with Investing Activities:








     Depreciation and Amortization

394,027

554,442

40.7


134,732

240,985

78.9

     Income from Results of Joint Venture Accounted by the Equity Method

(137,159)

(112,345)

(18.1)


(29,136)

-

(100.0)

     Interest Income

(128,993)

(151,779)

17.7


(46,653)

(41,933)

(10.1)

     Interest payables

-

306,710

-


-

193,990

-

     Foreign Exchange Gain (loss), net unearned

233,392

(337,684)

(244.7)


95,967

13,231

(86.2)

Sub-Total

4,182,559

5,168,563

23.6


1,405,225

1,959,047

39.4

     Increase in Trade Receivables

323,683

298,035

(7.9)


177,931

157,605

(11.4)

     Decrease in Recoverable Taxes and other Current Assets

406,836

(1,059,489)

(360.4)


59,553

(48,902)

(182.1)

     Income Tax Paid

(1,256,056)

(1,538,064)

22.5


(439,728)

(521,500)

18.6

     Trade Accounts Payable

124,487

141,967

14.0


(48,093)

48,688

(201.2)









Net Cash Flow Provided by Operating Activities

3,781,509

3,011,013

(20.4)


1,154,888

1,594,938

38.1









Investing Activities








     Investments in Associates

-

(726,584)

-


-

-

-

     Loans granted to Associates

62,077

286,507

361.5


62,077

-

(100.0)

     Restricted cash

-

(4,231)

-


-

(4,231)

-

     Investments in Machinery, Furniture and Equipment, net

(807,154)

(705,257)

(12.6)


(410,051)

(313,395)

(23.6)

     Interest Income

83,788

167,442

99.8


39,155

70,238

79.4

     Initial recognition for consolidation

-

578,730

-


-

-

-









Net Cash Flow used by Investing Activities

(661,289)

(403,393)

(39.0)


(308,819)

(247,388)

(19.9)









Excess Cash to Use in Financing Activities

3,120,220

2,607,620

(16.4)


846,069

1,347,550

59.3









Banks Load

-

4,000,000

-


-

4,000,000

-

Debt paid

-

(102,913)

-


-

(102,913)

-

Interest paid

-

(475,372)

-


-

(395,510)

-

Dividends Paid

(1,683,000)

(1,848,000)

9.8


-

-

-









Net Cash Flow used by Financing Activities

(1,683,000)

1,573,715

(193.5)


-

3,501,577

-









Net Increase in Cash and Cash Equivalents

1,437,220

4,181,335

190.9


846,069

4,849,127

473.1









Cash and Cash Equivalents at Beginning of Period

2,084,160

3,497,635

67.8


2,675,311

2,829,843

5.8









Cash and Cash Equivalents at the End of Period

3,521,380

7,678,970

118.1


3,521,380

7,678,970

118.1

 

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


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