ASUR Reports 2Q21 Financial Results

Rhea-AI Summary

Grupo Aeroportuario del Sureste (ASR) reported remarkable 2Q21 results, with total passenger traffic soaring 13.5 times YoY, reflecting pandemic recovery. Total revenues surged by 139.3% to Ps.4.23 billion, while EBITDA skyrocketed to Ps.2.50 billion, a 47.9 times increase from last year. Despite these gains, passenger traffic remained 14.4% below pre-pandemic levels, and commercial revenues per passenger dropped by 66.4%. The company ended the quarter with cash reserves of Ps.7.84 billion and a net debt-to-EBITDA ratio of 0.9x, indicating a stable financial position.

Positive

• Total revenues increased by 139.3% YoY to Ps.4,229.3 million.
• EBITDA surged to Ps.2,503.8 million, a 47.9x increase from 2Q20.
• Net debt-to-LTM EBITDA improved to 0.9x from 1.78x.
• Cash and cash equivalents increased to Ps.7,837.8 million.

Negative

• Passenger traffic down 14.4% compared to pre-pandemic 2Q19 levels.
• Commercial revenues per passenger decreased by 66.4% YoY.

MEXICO CITY, July 22, 2021 /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 six-month periods ended June 30, 2021. 

2Q21 Highlights¹

• Total passenger traffic increased 13.5x year over year (YoY) reflecting the full impact of the pandemic in the prior year's quarter. When compared to the pre-pandemic levels of 2Q19, traffic declined 14.4%. By country of operations, 2Q21 passenger traffic compared to 2Q19 levels were as follows:
• Mexico: declined 16.3%, with domestic and international traffic down 12.1% and 20.4%, respectively
• Puerto Rico (Aerostar): increased 10.5%, with domestic traffic up 19.3% and international traffic down 58.1%
• Colombia (Airplan): declined 29.6%, with domestic and international traffic down 30.6% and 24.5%, respectively.
• Revenues increased 139.3% YoY to Ps.4,229.3 million, and were up 3.9% when compared to 2Q19. Excluding construction revenues, revenues increased 324.9% YoY, and declined 2.1% against 2Q19.
• Consolidated commercial revenues per passenger were Ps.118.8 in 2Q21
• Consolidated EBITDA increased 47.9x to Ps.2,503.8 million from Ps.51.2 million in 2Q20, and was 3.1% below comparable pre-pandemic levels of 2Q19 (excludes Ps.162.6 million extraordinary insurance recovery)
• Adjusted EBITDA Margin (excludes the effect of IFRIC 12) increased to 64.8% from 5.6% in 2Q20 and compares to 69.5% in 2Q19. Excluding the insurance recovery in 2Q19, comparable Adjusted EBITDA Margin would have been 52.8%.
• Closed the quarter with cash & cash equivalents of Ps.7,837.8 million and Net Debt-to-LTM EBITDA at 0.9x.
• Principal debt payments of Ps.521.6 million, or 3.9% of Total Debt, mature in 2H21.
• In June 2021, the Board of Directors approved a payment date of October 1, 2021 for the ordinary net cash dividend.

Table 1: Financial & Operational Highlights 1
	Second Quarter		% Chg
	2020	2021
Financial Highlights
Total Revenue	1,767,005	4,229,281	139.3
Mexico	1,042,783	2,946,621	182.6
San Juan	672,269	948,918	41.2
Colombia	51,953	333,742	542.4
Commercial Revenues per PAX	353.2	118.8	(66.4)
Mexico	300.5	130.8	(56.5)
San Juan	327.1	141.7	(56.7)
Colombia	4,630.6	46.7	(99.0)
EBITDA	51,190	2,502,816	4,789.2
Net Income	(565,497)	1,329,788	n/a
Majority Net Income	(520,284)	1,231,659	n/a
Earnings per Share (in pesos)	(1.7343)	4.1055	n/a
Earnings per ADS (in US$)	(0.8712)	2.0624	n/a
Capex	613,590	460,965	(24.9)
Cash & Cash Equivalents	7,124,097	7,837,766	10.0
Net Debt	8,413,728	5,594,319	(33.5)
Net Debt/ LTM EBITDA	1.78	0.90	(49.4)
Operational Highlights
Passenger Traffic
Mexico	504,978	7,305,142	1,346.6
San Juan	335,606	2,671,356	696.0
Colombia	5,417	2,019,347	37,178.0

1 Unless otherwise stated, all financial figures discussed in this announcement are unaudited, prepared in accordance with International Financial Reporting Standards (IFRS), and represent comparisons between the three- and six-month periods ended June 30, 2021, and the equivalent three- and six-month periods ended June 30, 2020. 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.19.9062 (source: Diario Oficial de la Federación de México), while Colombian peso figures are calculated at the exchange rate of COP187.7400 = Mexican Ps.1.00 (source: Investing). Definitions for EBITDA, Adjusted EBITDA Margin, Majority Net Income can be found on page 20 of this report.

For a full version of ASUR's Second Quarter 2021 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

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 earnings in 2Q21?

Grupo Aeroportuario del Sureste reported total revenues of Ps.4.23 billion in 2Q21.

How did passenger traffic perform for ASR in 2Q21?

Total passenger traffic increased 13.5 times YoY in 2Q21 but was still 14.4% below pre-pandemic levels.

What was the net debt-to-EBITDA ratio for ASR in 2Q21?

ASR's net debt-to-LTM EBITDA ratio improved to 0.9x in 2Q21.

How much cash did Grupo Aeroportuario del Sureste have at the end of 2Q21?

ASR reported cash and cash equivalents of Ps.7.84 billion at the end of 2Q21.

What was the EBITDA for ASR in the second quarter of 2021?

ASR's EBITDA for 2Q21 reached Ps.2.50 billion, representing a significant increase from the previous year.