ASUR Reports 4Q22 Financial Results

Rhea-AI Summary

Grupo Aeroportuario del Sureste (ASUR) reported significant growth in its 4Q22 results, with total passenger traffic rising 18.0% YoY and 25.8% compared to 4Q19. Revenues increased 7.1% YoY to Ps.7,273.6 million, while consolidated EBITDA soared 34.8% YoY to Ps.4,427.1 million, yielding an Adjusted EBITDA Margin of 75.3%. The company held cash and equivalents of Ps.13,175.0 million and demonstrated a robust net debt-to-EBITDA ratio of 0.1x. Notable increases were observed across all operational regions, particularly in Colombia, which saw a 37.4% increase in passenger traffic.

Positive

• Total passenger traffic increased 18.0% YoY and 25.8% compared to 4Q19.
• Revenues rose 7.1% YoY to Ps.7,273.6 million and 60.0% compared to 4Q19.
• Consolidated EBITDA increased 34.8% YoY to Ps.4,427.1 million.
• Adjusted EBITDA Margin improved to 75.3%, up from 69.0% in 4Q21.
• Cash and cash equivalents reached Ps.13,175.0 million.
• Net Debt-to-LTM EBITDA was at 0.1x, showcasing strong financial health.

Negative

• Commercial revenues per passenger decreased to Ps.111.6, down 3.7% YoY.
• Capex investments dropped 35.1% YoY, potentially indicating reduced future growth.

Total passenger traffic in 4Q22 increased 25.8% compared to 4Q19 and 18.0% YoY

MEXICO CITY, Feb. 23, 2023 /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, 2022. 

4Q22 Highlights¹                               

• Total passenger traffic increased 18.0% year over year (YoY) and 25.8% compared to 4Q19. By country of operations, 4Q22 passenger traffic showed the following increases compared to 4Q19 levels:
• Mexico: up 25.9%, with domestic and international traffic levels increasing 23.5% and 28.5%, respectively
• Puerto Rico (Aerostar): up 9.3%, with domestic traffic increasing by 10.4%, and international traffic declining 0.8%
• Colombia (Airplan): up 37.4%, with domestic and international passengers increasing by 32.0% and 69.1%, respectively.
• Revenues increased 7.1% YoY to Ps.7,273.6 million and by 60.0% compared to 4Q19. Excluding construction revenues, revenues increased 23.4% YoY and 53.7% against 4Q19
• Consolidated commercial revenues per passenger of Ps.111.6
• Consolidated EBITDA increased 34.8% YoY to Ps.4,427.1 million and 81.7% compared to 4Q19
• Adjusted EBITDA Margin (excluding the effect of IFRIC 12) increased to 75.3%, from 69.0% in 4Q21 and 63.7% in 4Q19
• Cash & cash equivalents of Ps.13,175.0 million at quarter-end and Net Debt-to-LTM EBITDA at 0.1x

 

Table 1: Financial & Operational Highlights 1
	Fourth Quarter		% Chg
	2021	2022
Financial Highlights
Total Revenue	6,789,564	7,273,564	7.1
Mexico	5,259,753	5,503,745	4.6
San Juan	976,903	1,094,690	12.1
Colombia	552,908	675,129	22.1
Commercial Revenues per PAX	115.8	111.6	(3.7)
Mexico	140.7	136.7	(2.9)
San Juan	142.0	146.5	3.1
Colombia	38.6	34.9	(9.6)
EBITDA	3,285,382	4,427,089	34.8
Net Income	2,072,183	2,749,751	32.7
Majority Net Income	2,013,123	2,561,220	27.2
Earnings per Share (in pesos)	6.7104	8.5374	27.2
Earnings per ADS (in US$)	3.4463	4.3846	27.2
Capex	2,274,001	1,474,864	(35.1)
Cash & Cash Equivalents	8,770,062	13,174,991	50.2
Net Debt	5,009,485	2,029,770	(59.5)
Net Debt/ LTM EBITDA	0.5	0.1	(74.2)
Operational Highlights
Passenger Traffic
Mexico	8,805,278	10,552,042	19.8
San Juan	2,508,835	2,595,997	3.5
Colombia	3,609,731	4,457,929	23.5

1 Unless otherwise stated, all financial figures discussed in this press release are unaudited, prepared in accordance with International Financial Reporting Standards (IFRS), and represent comparisons between the three- and twelve-month periods ended December 31, 2022, and the equivalent three- and twelve-month periods ended December 31, 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.19.4715 (source: Diario Oficial de la Federación de México), while Colombian peso figures are calculated at the exchange rate of COP248.4800 = Mexican Ps.1.00 (source: Investing). Definitions for EBITDA, Adjusted EBITDA Margin, Majority Net Income can be found on page 17 of this report.

4Q22 Earnings Call

Date & Time: Friday, February 24, 2023 at 10:00 AM US ET; 9:00 AM CT 

Dial-in: 1-888-886-7786 (U.S. Toll-Free) 1-416-764-8658 (International)

Access Code: 57577969

Replay: Friday, February 24, 2023 at 1:00 PM US ET, ending at 11:59 PM US ET on Friday, March 3, 2023. Dial in: 1-844-512-2921 (Toll-Free) 1-412-317-6671 (International). Access Code: 57577969

For a full version of ASUR's Fourth 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 Grupo Aeroportuario del Sureste's earnings for 4Q22?

ASUR reported revenues of Ps.7,273.6 million for 4Q22, a 7.1% increase YoY.

How did ASUR's passenger traffic perform in 4Q22?

Total passenger traffic increased 18.0% YoY and 25.8% compared to 4Q19.

What is the net debt-to-EBITDA ratio for ASUR?

ASUR's net debt-to-LTM EBITDA ratio was 0.1x, indicating strong financial health.

What improvements did ASUR see in its EBITDA margin for 4Q22?

ASUR's Adjusted EBITDA Margin increased to 75.3%, up from 69.0% in 4Q21.

When is ASUR's next earnings call?

ASUR's next earnings call is scheduled for February 24, 2023, at 10:00 AM US ET.