ASUR Reports 1Q23 Financial Results

Rhea-AI Summary

Total passenger traffic for Grupo Aeroportuario del Sureste (ASR) increased 19.2% in 1Q23 compared to 1Q22, with Mexico up 22.8%, Puerto Rico up 21.6%, and Colombia up 8.8%. Revenues rose 18.9% year-over-year to Ps.6,449.4 million, while adjusted revenue excluding construction revenue grew 21.8%. The consolidated EBITDA also saw a significant increase of 23.2% to Ps.4,530.4 million, with an adjusted EBITDA margin rising to 71.9% from 71.0% in the previous year. The company boasts a strong cash position of Ps.15,108.2 million and a net debt to EBITDA ratio of -0.1x, indicating solid financial health.

Positive

• Passenger traffic increased 19.2% in 1Q23 compared to 1Q22.
• Revenues rose 18.9% year-over-year to Ps.6,449.4 million.
• Adjusted EBITDA increased 23.2% to Ps.4,530.4 million.
• Adjusted EBITDA margin improved to 71.9% from 71.0%.

Negative

• Capex decreased by 54.7% from Ps.315.8 million to Ps.143.0 million.

Total passenger traffic in 1Q23 increased 19.2% compared to 1Q22

MEXICO CITY, April 24, 2023 /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, 2023.

1Q23 Highlights¹                               

• Total passenger traffic increased 19.2% compared to 1Q22.  By country of operations, 1Q23 passenger traffic showed the following increases compared to 1Q22:
• Mexico: up 22.8%, reflecting increases of 27.7% and 19.2% in domestic and international traffic, respectively.
• Puerto Rico (Aerostar): up by 21.6%, resulting from increases of 19.4% and 49.2% in domestic and international traffic, respectively.
• Colombia (Airplan): up by 8.8%, with increases of 4.1% and 36.2%, in domestic and international traffic, respectively.
• Revenues increased by 18.9% year-over-year to Ps.6,449.4 million. Excluding construction revenue, revenue increased 21.8% compared to 1Q22.
• Consolidated commercial revenue per passenger reached Ps.123.2 million.
• Consolidated EBITDA increased 23.2% year-over-year to Ps.4,530.4 million.
• Adjusted EBITDA margin (excluding the effect of IFRIC 12) increased to 71.9% from 71.0% in 1Q22.
• Cash position of Ps.15,108.2 million, and a Net Debt to EBITDA LTM ratio of negative 0.1x.

Table 1: Financial & Operational Highlights 1
	First Quarter		% Chg
	2022	2023
Financial Highlights
Total Revenue	5,425,805	6,449,409	18.9
Mexico	3,873,476	4,775,146	23.3
San Juan	948,324	1,010,943	6.6
Colombia	604,005	663,320	9.8
Commercial Revenues per PAX	120.9	123.2	1.9
Mexico	145.9	147.0	0.7
San Juan	148.5	144.7	(2.6)
Colombia	41.2	42.3	2.7
EBITDA	3,676,285	4,530,402	23.2
Net Income	2,349,762	2,602,245	10.7
Majority Net Income	2,193,709	2,512,362	14.5
Earnings per Share (in pesos)	7.3124	8.3745	14.5
Earnings per ADS (in US$)	4.0531	4.6418	14.5
Capex	315,817	142,994	(54.7)
Cash & Cash Equivalents	9,962,212	15,108,235	51.7
Net Debt	3,418,431	(1,593,945)	(146.6)
Net Debt/ LTM EBITDA	0.3	(0.1)	(133.9)
Operational Highlights
Passenger Traffic
Mexico	9,020,754	11,073,291	22.8
San Juan	2,390,719	2,907,038	21.6
Colombia	3,571,973	3,885,317	8.8

1 Unless otherwise stated, all financial figures discussed in this press release are unaudited, prepared in accordance with International Financial Reporting Standards (IFRS), and represent comparisons between the three-month period ended March 31, 2023, and the equivalent three-month period ended March 31, 2022. 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. 18.0415 (source: Diario Oficial de la Federación de México), while Colombian peso figures are calculated at the exchange rate of COP258.0400 = Mexican Ps.1.00 (source: Investing). Definitions for EBITDA, Adjusted EBITDA Margin, Majority Net Income can be found on page 17 of this report.

1Q23 Earnings Call

Date & Time: Tuesday, April 25, 2023 at 10:00 AM US ET; 8:00 AM Mexico City Time 

Dial-in: 1-877-407-4018 (U.S. Toll-Free) 1-201-689-8471 (International)

Access Code: 13737620

Replay: Tuesday, April 25, 2023 at 1:00 PM US ET, ending at 11:59 PM US ET on Tuesday, May 2, 2023. Dial in: 1-844-512-2921 (Toll-Free) 1-412-317-6671 (International). Access Code: 13737620

For a full version of ASUR's First Quarter 2023 Earnings Release, please visit: https://www.asur.com.mx/informacion-financiera-page-0

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 Article 4.033.01 of the Mexican Stock Exchange Internal Rules, 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 with respect to 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.

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

FAQ

What were Grupo Aeroportuario del Sureste's revenues in 1Q23?

Grupo Aeroportuario del Sureste reported revenues of Ps.6,449.4 million in 1Q23, reflecting an 18.9% increase compared to the previous year.

How much did passenger traffic increase for ASR in 1Q23?

Passenger traffic for ASR increased by 19.2% in 1Q23 compared to 1Q22.

What is the EBITDA for Grupo Aeroportuario del Sureste in 1Q23?

The EBITDA for Grupo Aeroportuario del Sureste in 1Q23 was Ps.4,530.4 million, an increase of 23.2% year-over-year.

How did ASR's net debt to EBITDA ratio change in 1Q23?

ASR's net debt to EBITDA ratio improved to -0.1x in 1Q23.