ASUR Reports 2Q22 Financial Results

Rhea-AI Summary

Grupo Aeroportuario del Sureste (ASR) reported significant recovery in its 2Q22 results, with total passenger traffic up 39.3% YoY and 19.2% over 2Q19 levels. Revenues increased 49.4% YoY to Ps.6,319.7 million, while EBITDA rose 61.4% YoY to Ps.4,040.6 million. The adjusted EBITDA margin improved to 70.5%. Cash equivalents stood at Ps.7,331.1 million, and net debt to LTM EBITDA decreased to 0.4x. ASUR declared a dividend of Ps.15.03 per share, amounting to Ps.4,509 million.

Positive

• Total passenger traffic increased 39.3% YoY.
• Revenues rose 49.4% YoY to Ps.6,319.7 million.
• EBITDA grew 61.4% YoY to Ps.4,040.6 million.
• Adjusted EBITDA margin improved to 70.5%.
• Net debt to LTM EBITDA reduced to 0.4x.

Negative

• Cash and cash equivalents decreased by 6.5% compared to the previous year.
• Capex fell by 5.2% YoY.

Total passenger traffic in 2Q22 increased 19.2% compared to 2Q19 and 39.3% YoY

MEXICO CITY, July 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- and six-month periods ended June 30, 2022. 

2Q22 Highlights¹

• Total passenger traffic increased 39.3% year over year (YoY), reflecting the impact of the Covid-19 pandemic, which had affected travel demand since mid-March 2020, and exceeded 2Q19 levels by 19.2%. By country of operations, 2Q22 passenger traffic showed the following recoveries compared to 2Q19 levels:
• Mexico: exceeded 2Q19 traffic by 12.5%, with domestic and international traffic levels increasing by 5.4% and 19.3%, respectively.
• Puerto Rico (Aerostar): exceeded 2Q19 traffic by 15.1%, with domestic traffic increasing by 18.6%, and international traffic recovering to 88.1% of 2Q19 levels.
• Colombia (Airplan): exceeded 2Q19 traffic by 43.2%, with domestic and international passengers exceeding their comparable 2Q19 levels by 41.6% and 51.6%, respectively.
• Revenues increased 49.4% YoY to Ps.6,319.7 million and by 55.3% compared to 2Q19 revenues. Excluding construction revenues, revenues increased 48.3% YoY and 45.1% against 2Q19.
• Consolidated commercial revenues per passenger were Ps.119.6 in 2Q22.
• Consolidated EBITDA increased 61. 4% YoY to Ps.4,040.6 million and 47.2% compared to 2Q19.
• Adjusted EBITDA Margin (excluding the effect of IFRIC 12) increased to 70.5%, from 64.8% in 2Q21 and 69.5% in 2Q19.
• Cash & cash equivalents of Ps.7,331.1 million at quarter-end and Net Debt-to-LTM EBITDA at 0.4x.
• Principal debt payments of Ps.107.3 million, or approximately 0.9% of Total Debt, mature during the remainder of 2022. Aerostar renegotiated its US$50 million principal amount of 6.75% senior secured notes maturing in May 2035, while Airplan in Colombia made principal payments of Ps.794.5 million in connection with its 12-Year syndicated loan facility with eight banks, with the next principal payment at Airplan due 2025.
• On June 1, 2022 ASUR paid an ordinary and extraordinary net cash dividend for a total of Ps.15.03 per share in relation to its ordinary "B" and "BB" Series shares, representing a total amount of Ps.4,509 million.

Table 1: Financial & Operational Highlights 1
	Second Quarter		% Chg
	2021	2022
Financial Highlights
Total Revenue	4,229,281	6,319,709	49.4
Mexico	2,946,621	4,557,925	54.7
San Juan	948,918	1,065,470	12.3
Colombia	333,742	696,314	108.6
Commercial Revenues per PAX	118.8	119.6	0.7
Mexico	130.8	142.8	9.2
San Juan	141.7	158.9	12.1
Colombia	46.7	39.7	(15.0)
EBITDA	2,502,816	4,040,629	61.4
Net Income	1,329,788	2,844,469	113.9
Majority Net Income	1,231,659	2,661,548	116.1
Earnings per Share (in pesos)	4.1055	8.8718	116.1
Earnings per ADS (in US$)	2.0392	4.4065	116.1
Capex	460,965	436,865	(5.2)
Cash & Cash Equivalents	7,837,766	7,331,083	(6.5)
Net Debt	5,594,319	5,047,003	(9.8)
Net Debt/ LTM EBITDA	0.90	0.36	(59.8)
Operational Highlights
Passenger Traffic
Mexico	7,305,142	9,817,127	34.4
San Juan	2,671,356	2,783,495	4.2
Colombia	2,019,347	4,106,959	103.4

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, 2022, and the equivalent three- and six-month periods ended June 30, 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.20.1335 (source: Diario Oficial de la Federación de México), while Colombian peso figures are calculated at the exchange rate of COP205.9300 = Mexican Ps.1.00 (source: Investing). Definitions for EBITDA, Adjusted EBITDA Margin, Majority Net Income can be found on page 17 of this report

 

2Q22 Earnings Call

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

Dial-in: 1-888-394-8218 (Toll-Free US & Canada) and 1-323-794-2590 (International & Mexico)

Access Code: 2205298  

Replay: Tuesday, July 26, 2022 at 1:00 PM US ET, ending at 11:59 PM US ET on Tuesday, August 2, 2022. 
Dial-in number: 1-844-512-2921 (Toll-Free US & Canada); 1-412-317-6671 (International & Mexico). Access Code: 2205298

For a full version of ASUR's Second 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 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 earnings for 2Q22?

Grupo Aeroportuario del Sureste reported revenues of Ps.6,319.7 million and EBITDA of Ps.4,040.6 million for 2Q22.

How did ASR's passenger traffic perform in 2Q22?

Passenger traffic increased by 39.3% year-over-year in 2Q22, exceeding pre-pandemic levels by 19.2%.

What is the adjusted EBITDA margin for ASR in 2Q22?

The adjusted EBITDA margin for Grupo Aeroportuario del Sureste in 2Q22 was 70.5%.

When was ASR's dividend declared for 2Q22?

ASR declared a net cash dividend of Ps.15.03 per share on June 1, 2022.

What is ASR's net debt to EBITDA ratio for 2Q22?

As of 2Q22, Grupo Aeroportuario del Sureste had a net debt to LTM EBITDA ratio of 0.4x.