ASUR Reports 1Q22 Financial Results

Rhea-AI Summary

Grupo Aeroportuario del Sureste (ASR) reported significant growth in 1Q22, with total passenger traffic up 71.4% year-over-year and exceeding pre-pandemic levels by 8.8%. Revenues surged 87.1% to Ps.5,425.8 million, while EBITDA increased 130.8% to Ps.3,676.3 million. The adjusted EBITDA margin improved to 71.0%. Cash equivalents stood at Ps.9,962.2 million, with a favorable net debt-to-EBITDA ratio of 0.3x.

Shareholders approved cash dividends totaling Ps.15.03 per share.

Positive

• Total passenger traffic up 71.4% YoY and 8.8% over 1Q19 levels.
• Revenues increased 87.1% YoY to Ps.5,425.8 million.
• EBITDA rose 130.8% to Ps.3,676.3 million.
• Adjusted EBITDA margin improved to 71.0% from 58.8% YoY.
• Cash and cash equivalents at Ps.9,962.2 million.
• Net debt-to-LTM EBITDA ratio improved to 0.3x.
• Dividends approved amounting to Ps.15.03 per share.

Negative

• None.

Total passenger traffic in 1Q22 increased 8.8% 1Q19 pre-pandemic levels

MEXICO CITY, April 25, 2022 /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-month period ended March 31, 2021. 

1Q22 Highlights¹

• Total passenger traffic increased 71.4% year over year (YoY), reflecting the impact of the Covid-19 pandemic, which had affected travel demand since mid-March 2020, and exceeded 1Q19 levels by 8.8%. By country of operations, 1Q22 passenger traffic showed the following recoveries compared to 1Q19 levels:
• Mexico: surpassed 1Q19 traffic by 3.4%, with domestic and international traffic levels increasing by 3.7% and 3.2%, respectively.
• Puerto Rico (Aerostar): exceeded 1Q19 traffic by 3.9%, with domestic traffic increasing by 6.8%, and international traffic reaching 78.0% of its comparable 1Q19 level.
• Colombia (Airplan): surpassed 1Q19 traffic by 30.1%, with domestic and international passengers exceeding their comparable levels by 30.1% and 29.7%, respectively.
• Revenues increased 87.1% YoY to Ps.5,425.8 million and by 32.3% when compared to 1Q19. Excluding construction revenues, revenues increased 91.2% YoY and 31.2% against 1Q19.
• Consolidated commercial revenues per passenger were Ps.120.9 in 1Q22.
• Consolidated EBITDA increased 130.8% YoY to Ps.3,676.3 million and 38.1% compared to 1Q19.
• Adjusted EBITDA Margin (excluding the effect of IFRIC 12) increased to 71.0%, from 58.8% in 1Q21 and 67.5% in 1Q19.
• Cash & cash equivalents of Ps.9,962.2 million at quarter-end and Net Debt-to-LTM EBITDA at 0.3x.
• Principal debt payments of Ps.52.3 million, or approximately 0.4% of Total Debt, mature in 2Q22, while Ps.401.6 million, or 3.0% of Total Debt, mature in the remainder of 2022.
• Subsequent to quarter-end, on April 20, 2022, ASUR´s Shareholders approved an ordinary and extraordinary net cash dividend of Ps.9.03 and Ps.6.00 for each of the ordinary "B" and "BB" Series shares.

 

Table 1: Financial & Operational Highlights 1
	First Quarter		% Chg
	2021	2022
Financial Highlights
Total Revenue	2,899,710	5,425,805	87.1
Mexico	1,909,929	3,873,476	102.8
San Juan	727,129	948,324	30.4
Colombia	262,652	604,005	130.0
Commercial Revenues per PAX	107.9	120.9	12.0
Mexico	123.5	145.9	18.2
San Juan	132.0	148.5	12.6
Colombia	43.5	41.2	(5.4)
EBITDA	1,592,545	3,676,285	130.8
Net Income	1,038,105	2,349,762	126.4
Majority Net Income	945,012	2,193,709	132.1
Earnings per Share (in pesos)	3.1500	7.3124	132.1
Earnings per ADS (in US$)	1.5820	3.6725	132.1
Capex	356,341	315,817	(11.4)
Cash & Cash Equivalents	5,739,798	9,962,212	73.6
Net Debt	7,997,653	3,418,431	(57.3)
Net Debt/ LTM EBITDA	2.1	0.3	(87.1)
Operational Highlights
Passenger Traffic
Mexico	5,118,866	9,020,754	76.2
San Juan	1,764,873	2,390,719	35.5
Colombia	1,857,285	3,571,973	92.3

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-month periods ended March 31, 2022, and the equivalent three-month periods ended March 31, 2021. All figures in this report are expressed in Mexican pesos, unless otherwise noted. Tables state figures in thousands of Mexican 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.19.9112 (source: Diario Oficial de la Federación de México), while Colombian peso figures are calculated at the exchange rate of COP189.4100 = Mexican Ps.1.00 (source: Investing). Definitions for EBITDA, Adjusted EBITDA Margin, Majority Net Income can be found on page 17 of this report.

1Q22 Earnings Call

Date & Time: Tuesday, April 26, 2022 at 10:00 AM US ET; 9:00 AM CT

Dial-in: 1-888-254-3590 (Toll-Free US & Canada) and 1-323-794-2551 (International & Mexico) Access Code: 9772203.  

Replay: Tuesday, April 26, 2022 at 1:00 PM US ET, ending at 11:59 PM US ET on Tuesday, May 3, 2022. Dial-in number: 1-844-512-2921 (Toll-Free US & Canada); 1-412-317-6671 (International & Mexico). Access Code: 9772203

For a full version of ASUR's First Quarter 2022 Earnings Release, please visit: http://www.asur.com.mx/en/investor-relations/financial-information.html

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, Bradesco, BTG Pactual, Citi Global Markets, Credit Suisse, GBM Grupo Bursatil, Goldman Sachs, HSBC Securities, Insight Investment Research, Itau BBA Securities, JP Morgan, Morgan Stanley, Nau Securities, Punto Research Santander, Scotiabank, 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.

Forward Looking Statements

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. In particular, the impact of the COVID-19 pandemic on global economic conditions and the travel industry, as well as on the business and results of operations of the Company in particular, is expected to be material, and, as conditions are changing rapidly, is difficult to predict. 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.

Contacts:

ASUR Adolfo Castro +1-52-55-5284-0408 acastro@asur.com.mx

InspIR Group Susan Borinelli +1-646-330-5907 susan@inspirgroup.com

 

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

FAQ

What were Grupo Aeroportuario del Sureste's earnings in 1Q22?

Grupo Aeroportuario del Sureste reported revenues of Ps.5,425.8 million in 1Q22.

How did ASR's passenger traffic compare to pre-pandemic levels?

In 1Q22, total passenger traffic increased by 8.8% compared to pre-pandemic levels in 1Q19.

What is the adjusted EBITDA margin for ASR in 1Q22?

ASR's adjusted EBITDA margin improved to 71.0% in 1Q22.

What dividends were approved by ASR shareholders?

ASR shareholders approved a net cash dividend of Ps.15.03 per share.

How much did ASR's EBITDA increase in 1Q22?

ASR's EBITDA increased by 130.8% to Ps.3,676.3 million in 1Q22.