ASUR Reports 3Q20 Financial Results

Rhea-AI Summary

Grupo Aeroportuario del Sureste (ASR) reported a substantial decline in 3Q20 results due to the COVID-19 pandemic. Total passenger traffic fell by 70.2% YoY, with decreases of 63.7% in Mexico and 95.4% in Colombia. Revenues decreased by 40.4% to Ps.2,447.1 million, and consolidated EBITDA dropped 69.5% to Ps.755.1 million. Adjusted EBITDA margin fell to 44.6%, although it improved from 2Q20's 1.8%. Cash reserves stood at Ps.6,012.7 million, with a net debt-to-EBITDA ratio of 1.5x.

Positive

• Commercial revenues per passenger increased from Ps.99.2 in 3Q19 to Ps.137.4 in 3Q20.
• Consolidated EBITDA improved from Ps.16.0 million in 2Q20, showing resilience amidst revenue challenges.

Negative

• Total passenger traffic decreased by 70.2% YoY.
• Net income fell by 89% to Ps.147 million, with earnings per share down 92% to 0.3505 pesos.
• Capex increased 87.2% to Ps.834.5 million, indicating higher ongoing investments despite declining revenues.

MEXICO CITY, Oct. 22, 2020 /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 nine-month periods ended September 30, 2020. 

3Q20 Highlights¹

• Total passenger traffic decreased 70.2% year over year (YoY), impacted by the COVID-19 pandemic, primarily since the second half of March 2020 which resulted in the following declines across operations:
• 63.7% in Mexico, due to declines of 51.7% and 77.6% in domestic and international traffic, respectively
• 59.1% in Puerto Rico (Aerostar), down 55.6% in domestic traffic and 88.0% in international traffic
• 95.4% in Colombia (Airplan), with domestic and international traffic down 94.9% and 98.1%, respectively
• Revenues declined 40.4% YoY to Ps.2,447.1
• Consolidated commercial revenues per passenger reached Ps.137.4, up from Ps.99.2 in 3Q19
• Consolidated EBITDA declined 69.5% YoY to Ps.755.1 million, but above the comparable Ps.16.0 million in 2Q20 (2Q20 excludes non-recurring insurance recoveries in Puerto Rico)
• Adjusted EBITDA Margin (excludes the effect of IFRIC 12) declined to 44.6% from 64.0% in 3Q19, but improved from the comparable 1.8% in 2Q20
• Cash & cash equivalents at quarter-end of Ps.6,012.7 million and Net Debt-to-LTM EBITDA at 1.5x
• Principal debt payments of Ps.97.4 million, or 0.7% of Total Debt, mature in 4Q20 and 5.9% of Total Debt matures in 2021

 

Table 1: Financial & Operational Highlights 1
	Third Quarter		% Chg
	2019	2020
Financial Highlights
Total Revenue	4,106,266	2,447,072	(40.4)
Mexico	2,745,561	1,699,712	(38.1)
San Juan	808,251	681,538	(15.7)
Colombia	552,454	65,822	(88.1)
Commercial Revenues per PAX	99.2	137.4	38.6
Mexico	114.3	114.7	0.4
San Juan	124.2	186.1	49.9
Colombia	42.2	282.0	568.2
EBITDA	2,475,603	755,074	(69.5)
Net Income	1,340,432	147,027	(89.0)
Majority Net Income	1,314,628	105,155	(92.0)
Earnings per Share (in pesos)	4.3821	0.3505	(92.0)
Earnings per ADS (in US$)	1.9789	0.1583	(92.0)
Capex	445,755	834,473	87.2
Cash & Cash Equivalents	6,196,806	6,012,746	(3.0)
Net Debt	7,777,721	8,732,330	12.3
Net Debt / LTM EBITDA	0.8	1.5	94.0
Operational Highlights
Passenger Traffic
Mexico	8,333,227	3,023,846	(63.7)
San Juan	2,354,372	963,677	(59.1)
Colombia	3,192,585	146,678	(95.4)

1 Unless otherwise stated, all financial figures discussed in this announcement are unaudited, prepared in accordance with International Financial Reporting Standards (IFRS), including application of IFRS 16 that came into effect in 2019, and represent comparisons between the three- and nine-month periods ended September 30, 2020, and the equivalent three-and nine-month periods ended September 30, 2019. 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.22.1438 (source: Diario Oficial de la Federación de México), while Colombian peso figures are calculated at the exchange rate of COP172.98 = 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 Third Quarter 2020 Earnings Release, please visit:
http://www.asur.com.mx/en/investor-relations/financial-information.html 

3Q20 Earnings Call
Date & Time:	Friday, October 23, 2020 at 10:00 AM US ET; 9:00 AM CT
Dial-in:	1-800-263-0877 (US & Canada) and 1-646-828-8143 (International & Mexico); Access Code: 5207766
Replay:	Friday, October 23, 2020 at 1:00 PM US ET, ending at 11:59 PM US ET on Friday, October 30, 2020. Dial-in number: 1-844-512-2921 (US & Canada); 1-412-317-6671 (International & Mexico). Access Code: 5207766

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.

Contacts:
ASUR	InspIR Group
Adolfo Castro	Susan Borinelli
+1-52-55-5284-0408	+1-646-330-5907
acastro@asur.com.mx	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 3Q20 financial results?

In 3Q20, Grupo Aeroportuario del Sureste reported revenues of Ps.2,447.1 million, a decline of 40.4% YoY.

How did passenger traffic change in 3Q20 for ASR?

Total passenger traffic decreased by 70.2% YoY, with Mexico seeing a 63.7% decline.

What is ASR's net income for the third quarter of 2020?

ASR's net income for 3Q20 was Ps.147 million, down 89% compared to 3Q19.

What was the EBITDA for Grupo Aeroportuario del Sureste in 3Q20?

Consolidated EBITDA for 3Q20 was Ps.755.1 million, a decline of 69.5% YoY.

What is Grupo Aeroportuario del Sureste's cash position at the end of 3Q20?

At the end of 3Q20, cash and cash equivalents stood at Ps.6,012.7 million.