ASUR Reports 4Q20 Financial Results

Rhea-AI Summary

Grupo Aeroportuario del Sureste (ASR) reported a 44.9% decline in passenger traffic for 4Q20 due to the COVID-19 pandemic. Revenue fell 6.4% YoY to Ps.4,253.7 million, a recovery from previous quarters. EBITDA decreased 45.4% to Ps.1,330.9 million, yet surpassed 3Q20 levels. The adjusted EBITDA margin dropped to 54.6% from 63.7% in 4Q19. Cash and cash equivalents stood at Ps.5,192.6 million, with a net debt-to-EBITDA ratio of 1.8x. Major debt payments are due in 1Q21.

Positive

• Revenue recovery from previous quarters
• Improvement in EBITDA compared to 2Q20 and 3Q20
• Increased commercial revenues per passenger to Ps.105.8
• Cash and cash equivalents of Ps.5,192.6 million

Negative

• 44.9% decline in total passenger traffic YoY
• EBITDA down 45.4% YoY
• 55.4% decline in net income YoY
• 59.9% drop in earnings per share

MEXICO CITY, Feb. 24, 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 twelve-month periods ended December 31, 2020. 

4Q20 Highlights¹

• Total passenger traffic decreased 44.9% 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:
• 40.6% in Mexico, due to declines of 27.9% and 54.0% in domestic and international traffic, respectively
• 43.6% in Puerto Rico (Aerostar), down 40.1% in domestic traffic and 75.5% in international traffic
• 57.0% in Colombia (Airplan), with declines of 56.3% in domestic and 61.7% in international traffic
• Revenues declined 6.4% YoY to Ps.4,253.7 million, but improved from the YoY 56.6% and 40.4% declines reported in 2Q20 and 3Q20, respectively  
• Consolidated commercial revenues per passenger reached Ps.105.8
• Consolidated EBITDA declined 45.4% YoY to Ps.1,330.9 million, but was above the Ps.755.1 million reported in 3Q20 and comparable Ps.16 million in 2Q20 (excluding non-recurring insurance recoveries in Puerto Rico in 2Q20)
• Adjusted EBITDA Margin (excludes the effect of IFRIC 12) declined to 54.6% from 63.7% in 4Q19, but improved from 44.6% in 3Q20 and comparable 1.8% in 2Q20
• Cash & cash equivalents at quarter-end of Ps.5,192.6 million and Net Debt-to-LTM EBITDA at 1.8x
• Principal debt payments of Ps.261.9 million, or 1.9% of Total Debt, mature in 1Q21 and 6.2% of Total Debt matures in 2021

Table 1: Financial & Operational Highlights 1
	Fourth Quarter		% Chg
	2019	2020
Financial Highlights
Total Revenue	4,544,643	4,253,658	(6.4)
Mexico	3,125,100	3,361,933	7.6
San Juan	861,207	674,484	(21.7)
Colombia	558,336	217,241	(61.1)
Commercial Revenues per PAX	92.3	105.8	14.7
Mexico	108.8	117.1	7.6
San Juan	105.2	122.8	16.7
Colombia	41.0	50.8	23.9
EBITDA	2,436,371	1,330,938	(45.4)
Net Income	1,300,547	580,071	(55.4)
Majority Net Income	1,256,006	503,077	(59.9)
Earnings per Share (in pesos)	4.1867	1.6769	(59.9)
Earnings per ADS (in US$)	2.1029	0.8423	(59.9)
Capex	1,727,976	1,526,747	(11.6)
Cash & Cash Equivalents	6,192,679	5,192,628	(16.1)
Net Debt	7,520,214	8,707,718	15.8
Net Debt/ LTM EBITDA	0.7	1.8	144.8
Operational Highlights
Passenger Traffic
Mexico	8,377,981	4,979,932	(40.6)
San Juan	2,376,073	1,339,560	(43.6)
Colombia	3,244,584	1,393,707	(57.0)

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 twelve-month periods ended December 31, 2020, and the equivalent three- and twelve-month periods ended December 31, 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.19.9087 (source: Diario Oficial de la Federación de México), while Colombian peso figures are calculated at the exchange rate of COP171.53 = 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 Fourth Quarter 2020 Earnings Release, please visit:
http://www.asur.com.mx/en/investor-relations/financial-information.html 

4Q20 Earnings Call

Date & Time: Thursday, February 25, 2021 at 10:00 AM US ET; 9:00 AM CT

Dial-in: 1-888-394-8218 (US & Canadá); 1-323-701-0225 (Internacional y México); Access Code: 1389668

Replay: Thursday, February 25, 2021 at 1:00 PM US ET, ending at 11:59 PM US ET on Thursday, March 4, 2021. Dial-in number: 1-844-512-2921 (US & Canada); 1-412-317-6671 (International & Mexico). Access Code:              1389668

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.

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

FAQ

What were ASR's passenger traffic statistics for 4Q20?

ASR reported a 44.9% decline in total passenger traffic in 4Q20 compared to the previous year.

What are the financial highlights for ASR in 4Q20?

ASR's revenue was Ps.4,253.7 million, EBITDA was Ps.1,330.9 million, and the net income dropped by 55.4% YoY.

How did ASR's earnings per share change in 4Q20?

Earnings per share fell by 59.9%, from Ps.4.1867 to Ps.1.6769.

What is the current cash position of ASR?

ASR reported cash and cash equivalents of Ps.5,192.6 million as of the end of 4Q20.

What was the adjusted EBITDA margin for ASR in 4Q20?

The adjusted EBITDA margin for ASR declined to 54.6% from 63.7% in 4Q19.