ASUR Reports 3Q22 Financial Results

Rhea-AI Summary

Grupo Aeroportuario del Sureste (ASR) reported strong financial results for 3Q22, with total passenger traffic up 24.5% year-over-year and 22.8% compared to 3Q19. Revenues increased by 29.4% YoY to Ps.6,294.8 million, while EBITDA rose 39.6% YoY to Ps.4,067 million. The Adjusted EBITDA Margin improved to 69.7%. Cash and cash equivalents stood at Ps.13,917.4 million, with a Net Debt-to-LTM EBITDA ratio of 0.14x. These results reflect a robust recovery in air travel and operational efficiency as the company navigates post-pandemic recovery.

Positive

• Total passenger traffic increased 24.5% YoY, indicating a strong recovery.
• Revenues rose 29.4% YoY to Ps.6,294.8 million, showcasing significant growth.
• EBITDA increased 39.6% YoY to Ps.4,067 million, reflecting improved operational performance.
• Adjusted EBITDA Margin improved to 69.7%, up from 67.7% in 3Q21.
• Cash and cash equivalents amounted to Ps.13,917.4 million, strengthening liquidity.
• Net Debt-to-LTM EBITDA ratio at 0.14x indicates low leverage.

Negative

• Commercial revenues per passenger declined to Ps.116.5 from Ps.117.6, indicating slight pricing pressure.
• Passenger traffic in Puerto Rico decreased by 7.2% compared to the previous year.

Total passenger traffic in 3Q22 increased 22.8% compared to 3Q19 and 24.5% YoY

MEXICO CITY, Oct. 24, 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 nine-month periods ended September 30, 2022. 

3Q22 Highlights¹

• Total passenger traffic increased 24.5% year over year (YoY) and 22.8% compared to 3Q19. By country of operations, 3Q22 passenger traffic showed the following increases compared to 3Q19 levels:
• Mexico: up 21.6%, with domestic and international traffic levels increasing 14.2% and 30.2%, respectively.
• Puerto Rico (Aerostar): up 7.9%, with domestic traffic increasing by 8.9%, and international traffic reaching 99.6% of 2Q19 levels.
• Colombia (Airplan): up 36.9%, with domestic and international passengers increasing by 33.0% and 58.3%, respectively.
• Revenues increased 29.4% YoY to Ps.6,294.8 million and by 53.3% compared to 3Q19 revenues. Excluding construction revenues, revenues increased 35.6% YoY and 50.9% against 3Q19.
• Consolidated commercial revenues per passenger were Ps.116.5 in 3Q22.
• Consolidated EBITDA increased 39.6% YoY to Ps.4,067.0 million and 64.3% compared to 3Q19.
• Adjusted EBITDA Margin (excluding the effect of IFRIC 12) increased to 69.7%, from 67.7% in 3Q21 and 64.0% in 3Q19.
• Cash & cash equivalents of Ps.13,917.4 million at quarter-end and Net Debt-to-LTM EBITDA at 0.14x.

 

Table 1: Financial & Operational Highlights 1
	Third Quarter		% Chg
	2021	2022
Financial Highlights
Total Revenue	4,866,106	6,294,804	29.4
Mexico	3,383,896	4,576,444	35.2
San Juan	999,885	1,001,545	0.2
Colombia	482,325	716,815	48.6
Commercial Revenues per PAX	117.6	116.5	(0.9)
Mexico	136.3	140.7	3.2
San Juan	152.3	161.3	5.9
Colombia	40.0	37.3	(6.8)
EBITDA	2,913,013	4,067,015	39.6
Net Income	1,957,451	2,678,375	36.8
Majority Net Income	1,793,950	2,546,504	41.9
Earnings per Share (in pesos)	5.9798	8.4883	41.9
Earnings per ADS (in US$)	2.9762	4.2246	41.9
Capex	601,180	548,227	(8.8)
Cash & Cash Equivalents	11,042,598	13,917,369	26.0
Net Debt	3,033,148	2,180,725	(28.1)
Net Debt/ LTM EBITDA	0.4	0.1	(60.2)
Operational Highlights
Passenger Traffic
Mexico	7,909,155	10,134,035	28.1
San Juan	2,739,163	2,540,779	(7.2)
Colombia	3,043,742	4,369,335	43.6

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 nine-month periods ended September 30, 2022, and the equivalent three- and nine-month periods ended September 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.20.0925 (source: Diario Oficial de la Federación de México), while Colombian peso figures are calculated at the exchange rate of COP228.4200 = Mexican Ps.1.00 (source: Investing). Definitions for EBITDA, Adjusted EBITDA Margin, Majority Net Income can be found on page 17 of this report

 

3Q22 Earnings Call

Date & Time: Tuesday, October 25, 2022 at 10:00 AM US ET; 9:00 AM CT

Dial-in: 1-866-416-5346 (U.S. Toll-Free) 1-323-794-2575 (International)

Access Code: 9021968  

Replay: Tuesday, October 25, 2022 at 1:00 PM US ET, ending at 11:59 PM US ET on Tuesday, November 1, 2022. Dial in: 1-844-512-2921 (Toll-Free) 1-412-317-6671 (International). Access Code: 9021968

For a full version of ASUR's Third Quarter 2022 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 the revenue results for ASR in 3Q22?

ASR reported revenues of Ps.6,294.8 million in 3Q22, a 29.4% increase YoY.

How much did EBITDA grow for ASR in 3Q22?

EBITDA for ASR increased by 39.6% YoY to Ps.4,067 million.

What is the passenger traffic growth for ASR in 3Q22?

Passenger traffic for ASR grew 24.5% year-over-year in 3Q22.

What is ASR's current cash position?

ASR reported cash and cash equivalents of Ps.13,917.4 million at the end of 3Q22.

What is ASR's Net Debt-to-LTM EBITDA ratio?

ASR's Net Debt-to-LTM EBITDA ratio is 0.14x as of September 30, 2022.