ASUR 2Q13 Passenger Traffic Up 9.98% YOY

22 Jul, 2013, 09:20 ET from Grupo Aeroportuario del Sureste, S.A.B. de C.V.

MEXICO CITY, July 22, 2013 /PRNewswire/ -- Grupo Aeroportuario del Sureste, S.A.B. de C.V. (NYSE: ASR; BMV: ASUR), (ASUR) the first privatized airport group in Mexico and operator of Cancun Airport and eight other airports in southeast Mexico, as well as a 50% JV partner in Aerostar Airport Holdings, LLC, operator of the Luis Munoz Marin International Airport in San Juan, Puerto Rico, today announced results for the three and six-month periods ended June 30, 2013.

2Q13 Highlights1:

  • EBITDA2 increased by 8.75% to Ps.804.75 million
  • Total passenger traffic was up 9.98%
  • Total revenues increased by 0.62%, as increases of 7.63% in aeronautical revenues and 9.10% in non-aeronautical revenues were more than offset by the 49.07% decline in construction services revenues
  • Commercial revenues per passenger declined by 1.29% to Ps.74.08
  • Operating profit increased by 9.52%
  • EBITDA margin increased to 62.70% from 58.02% in 2Q12

___

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, 2013, and the equivalent three- and six-month periods ended June 30, 2012.  Results are expressed in nominal pesos. Tables state figures in thousands of pesos, unless otherwise noted. Passenger figures exclude transit and general aviation passengers. 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 = Ps.13.0279.

2. 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 of our performance 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.

Passenger Traffic

For the second quarter of 2013, total passenger traffic increased year-over-year by 9.98%. Domestic passenger traffic rose by 6.41% while international passenger traffic increased by 12.94%.

The 6.41% growth in domestic passenger traffic was driven by increases at Cancun, Veracruz, Merida, Villahermosa, Minatitlan, Oaxaca and Villahermosa. The 12.94% growth in international passenger traffic resulted mainly from an increase of 13.73% in international traffic at the Cancun airport.

Passenger traffic for the first six months of 2013 increased 9.22%, reflecting increases of 8.19% in domestic passenger traffic and 9.92% in international passenger traffic.

 

Table I: Domestic Passengers (in thousands)

Airport

2Q12

2Q13

% Change

6M 2012

6M

2013

%

Change

Cancun

1,169.0

1,239.8

6.06

2,031.9

2,251.1

10.79

Cozumel

21.5

19.7

(8.37)

41.8

40.4

(3.35)

Huatulco

99.9

97.5

(2.40)

193.5

188.7

(2.48)

Merida

274.5

286.0

4.19

553.9

556.8

0.52

Minatitlan

31.1

36.1

16.08

61.4

68.1

10.91

Oaxaca

101.6

108.2

6.50

196.4

210.2

7.03

Tapachula

36.4

34.4

(5.49)

74.0

69.7

(5.81)

Veracruz

191.1

226.8

18.74

367.0

436.6

18.96

Villahermosa

221.0

235.0

6.33

428.8

450.9

5.15

TOTAL

2,146.0

2,283.5

6.41

3,948.9

4,272.5

8.19

Note: Passenger figures exclude transit and general aviation passengers.

 

II: International Passengers (in thousands)

Airport

2Q12

2Q13

% Change

6M 2012

6M

2013

%

Change

Cancun

2,399.1

2,728.6

13.73

5,439.2

6,003.8

10.38

Cozumel

100.3

97.6

(2.69)

236.4

228.2

(3.47)

Huatulco

10.6

15.0

41.51

48.8

70.0

43.44

Merida

22.6

26.3

16.37

50.1

57.9

15.57

Minatitlan

1.5

1.9

26.67

2.9

3.5

20.69

Oaxaca

11.5

12.6

9.57

26.5

27.6

4.15

Tapachula

1.9

1.9

-

4.1

3.8

(7.32)

Veracruz

24.8

22.9

(7.66)

49.0

45.6

(6.94)

Villahermosa

13.7

13.9

1.46

26.6

26.7

0.38

TOTAL

2,586.0

2,920.7

12.94

5,883.7

6,467.1

9.92

Note: Passenger figures exclude transit and general aviation passengers.

 

Table III: Total Passengers (in thousands)

Airport

2Q12

2Q13

% Change

6M 2012

6M

2013

%

Change

Cancun

3,568.1

3,968.4

11.22

7,471.1

8,254.9

10.49

Cozumel

121.8

117.3

(3.69)

278.2

268.6

(3.45)

Huatulco

110.5

112.5

1.81

242.4

258.7

6.72

Merida

297.1

312.3

5.12

604.0

614.7

1.77

Minatitlan

32.6

38.0

16.56

64.4

71.6

11.18

Oaxaca

113.2

120.8

6.71

222.9

237.8

6.68

Tapachula

38.3

36.3

(5.22)

78.1

73.5

(5.89)

Veracruz

215.8

249.7

15.71

416.1

482.2

15.89

Villahermosa

234.7

248.9

6.05

455.4

477.6

4.87

TOTAL

4,732.0

5,204.2

9.98

9,832.6

10,739.6

9.22

Note: Passenger figures exclude transit and general aviation passengers.

Consolidated Results for 2Q13

In July 2012, the Puerto Rico Ports Authority granted Aerostar, ASUR's joint venture with Highstar Capital IV and its affiliated funds, a 40-year concession to operate the Luis Munoz Marin International Airport of Puerto Rico ("SJU") under the United States FAA's Airport Privatization Pilot Program. On February 27, 2013, the transaction was consummated and Aerostar began operating the SJU Airport. During 1Q13, our Cancun airport subsidiary made a US$118 million capital contribution to Aerostar corresponding to its 50% equity contribution. As a result, in 1Q13 ASUR began accounting for its ownership stake in Aerostar through the equity method, in accordance with IFRS.

Total revenues for 2Q13 increased year-over-year by 0.62% to Ps.1,283.42 million. This was mainly due to increases of:

  • 7.63% in revenues from aeronautical services, principally as a result of the 9.98% rise in passenger traffic; and
  • 9.10% in revenues from non-aeronautical services, reflecting the 8.37% increase in commercial revenues detailed below.

These increases more than offset the 49.07% decline in revenues from construction services as a result of lower capital expenditures and other investments in concessioned assets during the period.

ASUR classifies commercial revenues as those derived from the following activities: duty-free stores, car rentals, retail operations, banking and currency exchange services, advertising, teleservices, non-permanent ground transportation, food and beverage, and parking lot fees.

Commercial revenues increased by 8.37% year-over-year during the quarter, principally due to the 9.98% increase in passenger traffic.

There were increases in revenues in the following activities:

  • 17.06% in ground transportation;
  • 14.48% in teleservices.
  • 13.42% in food and beverage;
  • 10.28% in advertising;
  • 10.10% in other revenue;
  • 9.10% in banking and currency exchange services;
  • 8.19% in duty-free stores;
  • 6.46% in retail operations;
  • 4.84% in parking lot fees; and
  • 3.62% in car rental revenues.

 

Retail and Other Commercial Space Opened since March 31, 2012

Business Name

Type

Opening Date

Cancun

Farmacias (4)

Retail

June 2013

Tequileria

Duty Free

May 2013

Merida

Sunglass Island

Retail

July 2012

Villahermosa

Promotora del Sol Caribe

Tourism booth

January 2013

Tienda de Artesanias

Retail

August 2012

Sunglass Island

Retail

July 2012

Operadora de Tiendas ExcExExclusexclusivas

Retail

June 2012

Snack Bar Aqua

Food & beverage

June 2012

Veracruz

Promotora del Sol Caribe

Tourism booth

January 2013

Rent a Matic Itza

Car rentals

August 2012

Cozumel

Island Cabo

Retail

February 2013

Oaxaca

Promotora del Sol Caribe

Tourism booth

March 2013

 

Table IV: Commercial Revenues per Passenger for 2Q13

2Q12

2Q13

% Change

Total Passengers ('000)

4,778

5,245

9.78

Total Commercial Revenues

358,566

388,574

8.37

Commercial revenues from direct operations (1)

80,761

87,974

8.93

Commercial revenues excluding direct operations

277,805

300,600

8.21

2Q12

2Q13

% Change

Total Commercial Revenue per Passenger

75.05

74.08

(1.29)

Commercial revenue from direct operations per passenger (1)

16.90

16.77

(0.77)

Commercial revenue per passenger (excluding direct operations)

58.15

57.31

(1.44)

Note: For purposes of this table, approximately 45,900 and 41,300 transit and general aviation passengers are included for 2Q12 and 2Q13, respectively.

(1) Revenues from direct commercial operations represent ASUR's operation of convenience stores in airports and the direct sale of advertising space.

 

Construction revenues and expenses. ASUR is required by IFRIC 12 to include in its income statement an income line reflecting the income from construction or improvements to concessioned assets made during the period. During 2Q13, ASUR recognized Ps.85.65 million in revenues from "Construction Services", a 49.07% year-on-year decline, because of lower levels of capital improvements to its concessioned assets. 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 Expenses have been included in ASUR's income statement as a result of the application of IFRIC 12, the decrease in Construction Revenues in 2Q13 did not result in a proportionate decrease in the EBITDA Margin, which is equal to EBITDA divided by total revenues.

Total operating costs and expenses for 2Q13 declined 8.36% year-over-year. This was primarily due to the 49.07% decline in construction costs, reflecting lower committed improvements made to concessioned assets during the period, which more than offset the following increases:

  • 7.80% in costs of services, principally reflecting higher maintenance, security and energy costs. Increased costs of sales from the opening of four drugstores at Cancun airport which are directly operated by ASUR also contributed to the rise in cost of services. These increases were partially offset by the reimbursement to ASUR of fees previously paid to third parties in connection with ASUR's participation in the SJU privatization project, including travel expenses;
  • 0.83% in administrative expenses, principally due to travel expenses in connection with diverse international bidding projects;
  • 8.64% in the technical assistance fee paid to ITA, reflecting the increase in EBITDA for the quarter (a factor in the calculation of the fee);
  • 7.68% in concession fees paid to the Mexican government, mainly due to an increase in regulated revenues (a factor in the calculation of the fee); and
  • 3.77% in depreciation and amortization, resulting mainly from capitalized investments.

Excluding the expenses incurred in connection with the SJU privatization project, cost of services would have increased 7.17%.

 

Table V: Operating Costs and Expenses for 2Q13

2Q12

2Q13

% Change

Cost of Services

231,068

249,097

7.80

Construction Costs              

168,189

85,653

(49.07)

Administrative

46,117

46,502

0.83

Technical Assistance

38,947

42,313

8.64

Concession Fees

51,169

55,099

7.68

Depreciation and Amortization

99,606

103,360

3.77

TOTAL

635,096

582,024

(8.36)

 

Operating margin for the quarter increased to 62.70% from 58.02% in 2Q12 reflecting the 0.62% increase in revenues and 8.36% decline in expenses during the period.

Comprehensive Financing Gain (Loss) for 2Q13 was a Ps.65.07 million loss, compared to a Ps.33.12 million gain in 2Q12, principally driven by a foreign exchange loss in 2Q13 resulting from US dollar-denominated debt.

During 2Q13, ASUR reported a foreign exchange loss of Ps.75.64 million which principally resulted from the 5.39% depreciation of the Mexican peso against the U.S. dollar during the period which resulted in a loss because of ASUR's  foreign currency net liability position.  ASUR's foreign currency net liability position increased in 2Q13 as compared to 2Q12 because of its incurrence of $215.0 million in US dollar-denominated debt in a loan from BBVA Bancomer and Merrill Lynch (US$107.5 million incurred with each bank).

Interest income increased by Ps.5.29 million year-on-year reflecting higher income from short-term investments resulting from the increase in cash balance during the period. Interest expense increased by Ps.13.31 million reflecting the higher loan balance.

 

Table VI: Comprehensive Financing Result (Cost)

2Q12

2Q13

Change

% Change

Interest income

27,704

32,993

5,289

19.09

Interest expenses

(9,107)

(22,422)

(13,315)

146.21

Loss (gains) on valuation of

Derivative

195

0

(195)

(100)

Foreign exchange gain (loss), net

14,332

(75,642)

(89,974)

627.78

Total

33,124

(65,071)

(98,195)

296.45%

Income (loss) from Equity Investment in Joint Venture. During 2Q13 our equity in the income of Aerostar, our joint venture with Highstar Capital IV and its affiliated funds, was a net gain of Ps.26.80 million. In addition, ASUR recorded a Ps.77.07 million gain in stockholders' equity resulting from the translation effect of Aerostar's financial statements (which are denominated in U.S. dollars), in connection with the valuation of the capital stock derived from the depreciation of the peso against the U.S. dollar.

From February 28, 2013 to June 30, 2013 our equity in the income of Aerostar, our joint venture with Highstar Capital IV and its affiliated funds, was a net loss of Ps.95.25 million, principally due to Ps.113.8 million in one-off costs resulting from all expenses incurred during the more than two years in which ASUR was involved in the bidding process for the privatization of SJU airport, including market research, preparation of all bidding documentation, obtaining the Part 139 Certificate from the FAA, advisory, legal, consulting, and debt financing fees, as well as all other costs incurred until the first day of operations under Aerostar's management; together with an operational gain of Ps.35.05 million generated between February 28, 2013 until June 30, 2013.  In addition, ASUR recorded a Ps.30.06 million gain in stockholders' equity resulting from the translation effect of Aerostar's financial statements, in connection with the valuation of the capital stock derived from the depreciation of the peso against the U.S. dollar.

During 2Q13 total passenger traffic at SJU airport was 2,123.6 thousand. From February 28, 2013 to June 30, 2013, total passenger traffic at SJU airport was 2,906.5 thousand.

Income Taxes. Following the changes in Mexican tax law that took effect on January 1, 2008, which established a new flat rate business tax ("Impuesto Empresarial a Tasa Unica" or "IETU") and eliminated the asset tax, the Company evaluates and reviews  its deferred assets and liabilities position as applied by Mexican Tax laws.

Income taxes for 2Q13 declined by Ps.201.69 million, or 95.90% year-over-year, principally due to the following factors:

  • A Ps.3.4 million decline in IETU resulting from a lower taxable base;
  • A Ps.51.60 million decrease in the provision for income taxes, reflecting the benefit from the Mexican tax amnesty program;
  • A Ps.152.51 million decline in deferred income taxes resulting from the recognition of a reduction in the amortization rate applicable to the concession to 15% which was retroactively applied to periods beginning in 2006;  
  • A Ps.5.83 million increase in deferred IETU because of the expiration of tax credits; and
  • A Ps.0.26 million decline in the asset tax for amounts that cannot be credited against other taxes.

Net income for 2Q13 increased by 41.29% to Ps.654.50 million from Ps.463.23 million in 2Q13. Earnings per common share for the quarter were Ps. 2.1817, or earnings per ADS (EPADS) of US$1.6746 (one ADS represents ten series B common shares). This compares with earnings per share of Ps. 1.5441, or EPADS of US$1.1852, for the same period last year.

 

Table VII: Summary of Consolidated Results for 2Q13

2Q12

2Q13

% Change

Total Revenues

1,275,511

1,283,417

0.62

Aeronautical Services

701,374

754,894

7.63

Non-Aeronautical Services

405,948

442,870

9.10

            Commercial Revenues

358,566

388,574

8.37

Construction Services

168,189

85,653

(49.07)

Operating Profit

640,415

701,393

9.52

Operating Margin %

50.21%

54.65%

8.84%

EBITDA

740,021

804,753

8.75

EBITDA Margin %

58.02%

62.70%

8.08%

Net Income

463,230

654,505

41.29

Earnings per Share

1.5441

2.1817

41.29

Earnings per ADS in US$

1.1852

1.6746

41.29

Note: U.S. dollar figures are calculated at the exchange rate of US$1 = Ps.13.0279.

Consolidated Results for the Six-Month Period ended June 30, 2013

Total revenues for 6M13 increased year-over-year by 3.76% to Ps.2,657.9 million, mainly due to the following increases:

  • 7.42% in revenues from aeronautical services as a result of the 9.22% increase in passenger traffic during the period;
  • 8.40% in revenues from non-aeronautical services, principally as a result of the 8.01% increase in commercial revenues detailed below.

These increases were partially offset by a 31.94% decline in construction services in connection with lower capital investments during the period.

Commercial revenues for 6M12 rose by 8.01% year-over-year, principally as a result of revenue increases in the following areas:

  • 25.59% in teleservices;
  • 15.06% in ground transportation services;
  • 12.05% in food and beverage;
  • 10.87% in other income;
  • 9.04% in advertising;
  • 8.29% in duty-free stores;
  • 7.86% in banking and currency exchange services; 
  • 6.40% in parking lot fees;
  • 5.51% in retail operations; and
  • 4.92% in car rentals.

 

Table VIII: Commercial Revenues per Passenger for 6M13

(in thousands)

6M12

6M13

% Change

Total Passengers *('000)

9,935

10,828

8.98

Total Commercial Revenues

743,519

803,070

8.01

Commercial revenues from direct operations (1)

167,795

179,437

6.94

Commercial revenues excluding direct operations

575,724

623,633

8.32

6M12

6M13

% Change

Total Commercial Revenue per Passenger

74.84

74.17

(0.90)

Commercial revenue from direct operations per passenger (1)

16.89

16.57

(1.89)

Commercial revenue per passenger (excluding direct operations)

57.95

57.60

(0.60)

* For purposes of this table, approximately 102,800 and 88,700 transit and general aviation passengers are included for 6M12 and 6M13, respectively.

 (1) Revenues from direct commercial operations represent ASUR's operation of convenience stores in airports and the direct sale of advertising space.

Total operating costs and expenses for 6M12 declined 4.13% year-on-year. This was primarily due to the 31.94% decline in construction costs, reflecting lower committed improvements made to concessioned assets during the period, which more than offset the following increases:

  • 1.84% in cost of services, principally reflecting higher maintenance and security costs, as well as costs incurred in the preparation of the master development plan. These increases were partially offset by the reimbursement to ASUR of fees previously paid to third parties in connection with ASUR's participation in the SJU privatization project, including travel expenses;  
  • 0.39% in administrative expenses, principally due to travel expenses in connection with diverse international bidding projects;
  • 9.77% in technical assistance costs, reflecting the corresponding increase in EBITDA during the period;
  • 8.19% in concession fees, mainly due to the increase in regulated revenues (a factor in the calculation of the fee); and
  • 4.00% in depreciation and amortization resulting mainly from capitalized investments.

Excluding expenses previously paid in connection with the SJU privatization project, cost of services would have increased 4.25%.

 

Table IX: Operating Costs and Expenses for 6M13 (in thousands)

6M12

6M13

% Change

Cost of Services

457,624

466,046

1.84

Construction Costs

258,710

176,080

(31.94)

Administrative

88,614

88,963

0.39

Technical Assistance

82,565

90,635

9.77

Concession Fees

105,494

114,131

8.19

Depreciation and Amortization

198,571

206,505

4.00

TOTAL

1,191,578

1,142,360

(4.13)

Operating margin increased to 57.02% in 6M13, from 53.48% in 6M12.  This was mainly the result of the 3.76% growth in revenues and the 4.13% decline in operating expenses for the period.

Comprehensive Financing Gain (Loss) for 6M13 was a Ps.18.88 million loss, compared to a Ps.18.00 million gain in 6M12, principally driven by Ps.44.24 million foreign exchange loss in 6M13 resulting from the impact of the 0.48% depreciation of the Mexican peso against the U.S. dollar during the period on ASUR's foreign currency net liability position. 

Interest income increased by Ps.22.87 million year-on-year reflecting higher income from short-term investments resulting from the increase in cash balance during the period. Interest expense increased by Ps.18.79 million reflecting the higher loan balance.

 

Table X: Comprehensive Financing Result (Cost)

6M12

6M13

Change

% Change

Interest income

41,424

64,292

22,868

55.20

Interest expenses

(20,144)

(38,931)

(18,787)

93.26

 

Loss (gains) on valuation of

Derivative

601

0

(601)

(100)

Foreign exchange gain (loss), net

3,885

(44,241)

(40,356)

(1,038.76)

Total

17,996

(18,880)

(38,876)

204.91

 

Net income for 6M13 increased by 13.97% to Ps.1,141,11 million. Earnings per common share for the year were Ps.3.8037, or earnings per ADS (EPADS) of US$2.9197 (one ADS represents ten series B common shares).  This compares with Ps.3.3373, or EPADS of US$2.5617, for 6M12.

 

Table XI: Summary of Consolidated Results for 6M13

(in thousands)

6M12

6M13

% Change

Total Revenues

2,561,489

2,657,925

3.76

Aeronautical Services

1,460,960

1,569,317

7.42

Non-Aeronautical Services

841,819

912,528

8.40

Commercial Revenues

743,519

803,070

8.01

Construction Services

258,710

176,080

(31.94)

Operating Profit

1,369,911

1,515,565

10.63

Operating Margin %

53.48%

57.02%

6.61%

EBITDA

1,568,482

1,722,070

9.79

EBITDA Margin %

61.23%

64.79%

5.81%

Net Income

1,001,201

1,141,112

13.97

Earnings per Share

3.3373

3.8037

13.97

Earnings per ADS in US$

2.5617

2.9197

13.97

Note: U.S. dollar figures are calculated at the exchange rate of US$1 = Ps. 13.0279

Tariff Regulation

The Mexican Ministry of Communications and Transportation regulates the majority of ASUR's activities by setting maximum rates, which represent the maximum possible revenues allowed per traffic unit at each airport.

ASUR's regulated revenues for 6M13 were Ps.1,751.23 million, resulting in an annual average tariff per workload unit of Ps.158.77. ASUR's regulated revenues accounted for approximately 65.89% of total income for the period.

The Mexican Ministry of Communications and Transportation reviews compliance with the maximum rates on an annual basis at the close of each year.

Balance Sheet

On June 30, 2013, Airport Concessions represented 70.95% of the Company's total assets, with current assets representing 15.05% and other assets representing 14.00%.

Cash and cash equivalents on June 30, 2013, were Ps.1,941.85 million, a 14.28% decline from the Ps.2,265.43 million in cash and cash equivalents recorded on December 31, 2012.

Shareholders' equity at the close of 6M13 was Ps.16,442.17 million and total liabilities were Ps.5,526.86 million, representing 74.84% and 25.16% of total assets, respectively. Deferred liabilities represented 32.61% of the Company's total liabilities. 

Total bank debt at June 30, 2013 was Ps.2,929.9 million, including Ps.8.6 million in accrued interest and commissions. During August and September of 2010, Cancun Airport entered into two three-year credit agreements of Ps.350 million and Ps.570 million with two banks. The terms of the agreements include a floating interest rate equal to the Tasa de Interes Interbancaria de Equilibrio (TIIE) plus 1.5% and quarterly principal payments. In addition, in September of 2011, Veracruz Airport entered into a three-year credit agreement of Ps.50 million. The terms include a floating interest rate equal to TIIE plus 0.75% and quarterly principal payments.

During 2Q13, ASUR made aggregate principal payments of Ps.98.1 million in connection with the Ps.350 million, Ps.570 million and Ps.50 million three-year credit agreements.

In the fourth quarter of 2011, Cancun Airport obtained authorization for two new bank loans from Banamex and BBVA Bancomer of US$300 million and Ps.1,500 million, respectively.

On February 15, 2013, our Cancun airport subsidiary executed an agreement for bank loans of US$107.5 million from each of BBVA Bancomer and Merrill Lynch, for a total of U.S.$215.0 million. The loans have a five-year term, amortize in four semi-annual payments of 2.5% of the aggregate amount of the loans beginning on February 15, 2016 and a final payment of the aggregate principal amount of the loans outstanding on the maturity date, February 15, 2018. The loans are denominated in U.S. dollars and charge interest at a rate equal to three-month LIBOR plus 1.99%. Proceeds from the loans were used to finance ASUR's capital contribution and subordinated shareholder loan to Aerostar. These loans are guaranteed by Grupo Aerportuario del Sureste, S.A.B. de C.V.  In connection with these loans, BBVA Bancomer's authorization for bank loans as described above was drawn down by US$107.5 million during 1Q13.

While the BBVA Bancomer and Merrill Lynch facility is outstanding, ASUR and its subsidiaries are not permitted to make any fundamental change to its corporate structure, or create any liens upon any of its property or sell any assets that exceed more than 10% of ASUR's consolidated total assets.

Additionally, the credit facility requires that ASUR and its subsidiaries maintain a consolidated leverage ratio equal to or less than 3.50:1.00 and a consolidated interest coverage ratio equal to or less than 3.00:1.00 as of the last day of each fiscal quarter. If ASUR fails to comply with these covenants, this facility restricts its ability to pay dividends to its shareholders. Additionally, failure to comply with these covenants would result in all amounts owed under the facility to become due and payable immediately. As of the date of this report, ASUR was in compliance with those covenants.

ASUR's subsidiary Cancun Airport and its joint venture partner Highstar Capital IV and its affiliated funds pledged their share ownership in Aerostar as collateral for US$350 million in senior secured notes issued by, and a $60 million credit facility obtained by, Aerostar that has not been drawn down yet.

Capital Expenditures

During 2Q13, ASUR made investments of Ps.102.29 million as part of ASUR's ongoing plan to modernize its airports pursuant to its master development plans. During 6M13 capital expenditures totaled Ps.193.27 million.

IFRS Adoption

In compliance with regulations established by the Mexican National Banking and Securities Commission (CNBV), as of January 1, 2012 the Company has adopted International Financial Reporting Standards (IFRS) as the accounting standards to prepare its financial statements.

Furthermore, and in compliance with INIF 19 "Changes derived from the adoption of IFRS," the most significant accumulated changes in net shareholders' equity as of January 1, 2011 are included in the table below:

 

Table XII: Effects on the Initial Shareholders' Equity Resulting from

the Adoption of IFRS as of January 1, 2011

(in thousands of Mexican Pesos)

 

Item

 

Description

Capital Stock

Retained Earnings

Legal Reserve

Total Shareholders' Equity

Labor liabilities

Elimination of severance liabilities according to NIF D-3 and creation of a liability under IAS 19 Net

7,835

7,835

Deferred employee profit sharing

Reversal of deferred employee profit sharing as it is outside the reach of IAS 12

(2,905)

(2,905)

Creation of a reserve for vacation

Recognition of accrued vacation rights not used by year-end.

(18,339)

(18,339)

Deferred Assets (income tax and flat tax)

Impact on deferred IETU derived from the recognition of provisions for vacations and employee benefits

3,534

3,534

Capital Stock

Elimination of inflation accounting.

(5,031,928)

(5,031,928)

Legal Reserve

Elimination of inflation accounting

(23,025)

 

(23,025)

Capital Stock and Legal Reserve

Reclassification of inflation accounting of capital stock and legal reserve to retained earnings

5,054,953

5,054,953

TOTAL

(5,031,928)

5,045,078

(23,025)

(9,875)

 

Table XIII: Principal Effects of IFRS on Shareholders' Equity

(In thousands of Mexican Pesos)

December 31,

2012

June 30,

2013

Shareholders' Equity Under Mexican Financial Reporting Standards

$16,486,523

$16,457,505

IFRS Adjustments:

Deferred Employee Profit Sharing (Note d)

(4,192)

(3,198)

Severance Liability and actuarial gains and losses (Note f)

10,003

11,354

Reserve for Vacations (Note e)

(23,744)

(26,071)

Deferred IETU  (Note c)

2,405

2,576

Total IFRS Adjustments

(15,528)

(15,539)

Shareholders' Equity Under IFRS

$16,470,995

$16,442,166

-- See notes at the end of the financial tables.

 

 Table XIV: Principal Effects of IFRS on the Income Statement

(In thousands of Mexican Pesos)

2Q12

2Q13

6M12

6M13

Net Income Under Mexican Financial Reporting Standards

463,565

653,458

1,003,752

1,140,923

Elimination of severance liabilities according with NIF D-3 and creation of a liability under IAS 19 – Net (Note d)

597

(234)

783

1,350

Elimination of PTU difference

0

2,125

0

995

Recognition of accrued rights not used (Note e)

(528)

(1,073)

(802)

(2,327)

Effect on deferred IETU resulting from the recognition of a reserve for vacation and employee benefits (Note c)

(404)

229

(2,532)

171

Net Income Under IFRS

463,230

654,505

1,001,201

1,141,112

Translation effect on foreign currency transactions

0

77,073

0

30,057

Actuarial Gains and Losses

179

0

179

0

Comprehensive Net Income Under IFRS

463,409

731,578

1,001,380

1,171,169

-- See notes at the end of the financial tables.

2Q13 Earnings Conference Call

Day:  

Tuesday, July 23, 2013

Time:   

10:00 AM US ET; 9:00 AM Mexico City time

Dial-in number:   

1-800-930-1344 (US & Canada) and 1-913-312-0726 (International & Mexico)

Access Code:

8807610

Please dial in 10 minutes before the scheduled start time.

Replay:  

Tuesday, July 23, 2013 at 1:00 PM US ET, ending at midnight US ET on Tuesday, July 30, 2013. Dial-in number: 1-877-870-5176 (US & Canada); 1-858-384-5517 (International & Mexico. Access Code: 8807610.

 

Analyst Coverage

In accordance with Mexican Stock Exchange Internal Rules article 4.033.01 ASUR informs that the stock is covered by the following broker-dealers: Actinver Casa de Bolsa, Barclays, BBVA Bancomer, Bofa Merril Lynch, Citi Investment Research, Credit Suisse, Grupo Bursatil Mexicano, Grupo Financiero Interacciones, Grupo Financiero Monex, Intercam Casa de Bolsa, Itau BBA, INVEX, JP Morgan, Morgan Stanley, Morningstar, Santander Investment, Scotia Capital, UBS Casa de Bolsa, Vector.

Please note that any opinions, estimates or forecasts regarding 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.

About ASUR:

Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASUR) is a Mexican airport operator with concessions to operate, maintain and develop the airports of Cancun, Merida, Cozumel, Villahermosa, Oaxaca, Veracruz, Huatulco, Tapachula and Minatitlan in the southeast of Mexico, as well as a 50% JV partner in Aerostar Airport Holdings, LLC, operator of the Luis Muñoz Marín International Airport of Puerto Rico. The Company is listed both on the NYSE in the U.S., where it trades under the symbol ASR, and on the Mexican Bolsa, where it trades under the symbol ASUR. One ADS represents ten (10) series B shares.

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. 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.

 

# # # TABLES TO FOLLOW # # #

 

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

Operating Results per Airport

Thousands of Mexican pesos 

Item

2Q

2012

2Q 2012 Per Workload Unit

2Q

2013

2Q 2013 Per Workload Unit

6M 

2012

6M 2012 Per Workload Unit

6M 

2013

6M 2013 Per Workload Unit

Cancun (1)

Aeronautical Revenues

528,068

145.2

576,111

142.5

1,106,955

145.2

1,206,031

143.5

Non-Aeronautical Revenues

363,316

99.9

396,426

98.1

756,861

99.3

821,459

97.7

Construction Services Revenues

113,426

31.2

34,045

8.4

166,567

21.9

73,410

8.7

Total Revenues

1,004,810

276.3

1,006,582

249.0

2,030,383

266.4

2,100,900

249.9

Operating Profit

505,599

139.0

581,333

143.8

1,122,751

147.3

1,275,685

151.8

EBITDA

569,729

156.6

646,133

159.8

1,250,503

164.1

1,405,203

167.2

Merida

Aeronautical Revenues

44,655

129.4

45,820

127.3

90,552

129.4

90,306

127.7

Non-Aeronautical Revenues

12,886

37.4

14,047

39.0

25,850

36.9

27,610

39.1

Construction Services Revenues

12,132

35.2

113

0.3

20,398

29.1

139

0.2

Other (2)

7

-

8

-

12

-

15

-

Total Revenues

69,680

202.0

59,988

166.6

136,812

195.4

118,070

167.0

Operating Profit

15,566

45.1

13,973

38.8

33,779

48.3

29,617

41.9

EBITDA

23,668

68.6

22,762

63.2

49,983

71.4

47,193

66.8

Villahermosa

Aeronautical Revenues

29,954

121.8

30,696

119.0

57,940

121.5

59,353

119.9

Non-Aeronautical Revenues

8,827

35.9

9,827

38.1

17,495

36.7

19,022

38.4

Construction Services Revenues

690

2.8

1,641

6.4

1,196

2.5

626

1.3

Other (2)

18

0.1

18

0.1

38

0.1

37

0.1

Total Revenues

39,489

160.5

42,182

163.5

76,669

160.7

79,038

159.7

Operating Profit

12,978

52.8

12,627

48.9

24,798

52.0

24,427

49.3

EBITDA

18,671

75.9

18,459

71.5

36,182

75.9

36,065

72.9

Other Airports (3)

Aeronautical Revenues

98,697

152.5

102,267

148.2

205,513

153.8

213,627

150.2

Non-Aeronautical Revenues

20,919

32.3

22,570

32.7

41,613

31.1

44,437

31.2

Construction Services Revenues

41,941

64.8

49,854

72.3

70,549

52.8

101,905

71.7

Other (2)

1,559

2.4

11,057

16.0

1,624

1.2

11,111

7.8

Total Revenues

163,116

252.1

185,748

269.2

319,299

239.0

371,080

261.0

Operating Profit

28,158

43.5

34,344

49.8

66,333

49.7

72,725

51.1

EBITDA

49,490

76.5

57,794

83.8

108,864

81.5

119,514

84.0

Holding & Service companies (4)

Construction Services Revenues

-

 n/a 

-

 n/a 

-

 n/a 

-

 n/a 

Other (2)

246,288

 n/a 

250,526

 n/a 

444,057

 n/a 

470,368

 n/a 

Total Revenues

246,288

 n/a 

250,526

 n/a 

444,057

 n/a 

470,368

 n/a 

Operating Profit

78,114

 n/a 

59,116

 n/a 

122,250

 n/a 

113,111

 n/a 

EBITDA

78,463

 n/a 

59,605

 n/a 

122,950

 n/a 

114,095

 n/a 

Consolidation Adjustment

Consolidation Adjustment

(247,872)

 n/a 

(261,609)

 n/a 

(445,731)

 n/a 

(481,531)

 n/a 

Group

Aeronautical Revenues

701,374

143.9

754,894

141.1

1,460,960

144.1

1,569,317

142.3

Non-Aeronautical Revenues

405,948

83.3

442,870

82.8

841,819

83.1

912,528

82.7

Construction Services Revenues

168,189

34.5

85,653

16.0

258,710

25.5

176,080

16.0

Total Revenues

1,275,511

261.6

1,283,417

239.8

2,561,489

252.7

2,657,925

241.0

Operating Profit

640,415

131.4

701,393

131.1

1,369,911

135.2

1,515,565

137.4

EBITDA

740,021

151.8

804,753

150.4

1,568,482

154.8

1,722,070

156.1

(1)Reflects the results of operations of Cancun Airport and two Cancun Airport Services subsidiaries on a consolidated basis.

(2) Reflects revenues under intercompany agreements which are eliminated in the consolidation adjustment.

(3) Reflects the results of operations of our airports located in Cozumel, Huatulco, Minatitlan, Oaxaca, Tapachula and Veracruz.

(4) Reflects the results of operations of our parent holding company and our services subsidiaries. Because none of these entities hold the concessions for our airports, we do not report workload unit data for theses entities.

 

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

Consolidated Statement of Income from January 1 to June  30,  2013 and 2012

Thousands of Mexican pesos 

I t e m

 6M 

 6M 

%

 2Q 

 2Q 

%

2012

2013

Change

2012

2013

Change

Revenues

Aeronautical Services

1,460,960

1,569,317

7.42

701,374

754,894

7.63

Non-Aeronautical Services

841,819

912,528

8.40

405,948

442,870

9.10

Construction Services

258,710

176,080

(31.94)

168,189

85,653

(49.07)

Total Revenues

2,561,489

2,657,925

3.76

1,275,511

1,283,417

0.62

Operating Expenses

Cost of Services

457,624

466,046

1.84

231,068

249,097

7.80

Cost of Construction

258,710

176,080

(31.94)

168,189

85,653

(49.07)

General and Administrative Expenses

88,614

88,963

0.39

46,117

46,502

0.83

Technical Assistance

82,565

90,635

9.77

38,947

42,313

8.64

Concession Fee

105,494

114,131

8.19

51,169

55,099

7.68

Depreciation and Amortization

198,571

206,505

4.00

99,606

103,360

3.77

Total Operating Expenses

1,191,578

1,142,360

(4.13)

635,096

582,024

(8.36)

Operating Income

1,369,911

1,515,565

10.63

640,415

701,393

9.52

Comprehensive Financing Cost

17,996

(18,880)

(204.91)

33,124

(65,071)

(296.45)

Participation in the Results of

Associates

(95,252)

-

26,802

-

Non-Ordinary Item

Non-Ordinary Item

-

-

-

-

-

-

Income Before Income Taxes

1,387,907

1,401,433

0.97

673,539

663,124

(1.55)

Provision for IETU

6,924

6,264

(9.53)

2,673

(728)

(127.24)

Provision for Income Tax

410,513

420,672

2.47

209,047

157,445

(24.68)

Provision for Asset Tax

5,731

5,731

-

2,865

2,865

-

Deferred Income Taxes

(46,396)

(184,276)

297.18

(4,461)

(156,975)

3,418.83

Deferred IETU

9,934

11,930

20.08

185

6,012

3,149.19

Net Income for the Year

1,001,201

1,141,112

13.97

463,230

654,505

41.29

Earnings per share

3.34

3.80

13.97

1.5441

2.1817

41.29

Earnings per American Depositary Share (in U.S. Dollars)

2.56

2.92

13.97

1.1852

1.6746

41.29

Exchange rate per US dollar Ps. 13.0279

 

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

Consolidated Balance Sheet as of  June 30, 2013 and 2012

Thousands of Mexican pesos 

I t e m

June 2013

December 2012

 Change 

% Change

A s s e t s 

Current Assets

Cash and Cash Equivalents

1,941,851

2,265,427

(323,576)

(14.28)

Trade Receivables, net

391,181

444,238

(53,057)

(11.94)

Recoverable Taxes and Other Current Assets

974,875

455,118

519,757

114.20

Total Current Assets

3,307,907

3,164,783

143,124

4.52

Non Current Assets

Machinery, Furniture and Equipment, net

317,251

314,634

2,617

0.83

Airports Concessions, net

15,586,964

15,629,821

(42,857)

(0.27)

Investment in Associates

1,442,807

-

1,442,807

-

Loans to Associates

1,314,093

-

1,314,093

-

Total  Assets

21,969,022

19,109,238

2,859,784

14.97

Liabilities and Stockholders' Equity

Current Liabilities

Trade Accounts Payable

11,425

8,694

2,731

31.41

Bank Loans

106,735

281,612

(174,877)

(62.10)

Accrued Expenses and Others Payables

783,186

404,674

378,512

93.54

Total Current Liabilities

901,346

694,980

206,366

29.69

Long Term Liabilities

Bank Loans

2,823,221

33,333

2,789,888

8,369.75

Deferred Income Taxes

1,379,789

1,499,707

(119,918)

(8.00)

Deferred Flat Rate Business Tax

416,067

404,137

11,930

2.95

Labor Obligations

6,433

6,086

347

5.70

Total Long Term Liabilities

4,625,510

1,943,263

2,682,247

138.03

-

Total Liabilities

5,526,856

2,638,243

2,888,613

109.49

-

Stockholders' Equity

-

Capital Stock

7,767,276

7,767,276

0

0.00

Legal Reserve

517,504

412,878

104,626

25.34

Share Repurchase Reserve

-

-

-

-

Net Income for the Period

1,141,112

2,075,328

(934,216)

(45.02)

Cumulative Effect of Conversion of Foreign Currency

30,057

30,057

-

IFRS Conversion Adjustment

5,045,078

5,045,078

0

0.00

Retained Earnings 

1,941,139

1,170,435

770,704

65.85

Total Stockholders' Equity

16,442,166

16,470,995

(28,828)

(0.18)

-

Total Liabilities and Stockholders' Equity

21,969,022

19,109,238

2,859,785

14.97

 

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

 Consolidated Statement of Cash flow from January 1 to June  30,  2013 and 2012

Thousands of Mexican pesos

Related

 6M 

 6M 

%

 2Q 

 2Q 

%

2012

2013

Change

2012

2013

Change

Operating Activities

Income Before Income Taxes

1,387,907

1,401,433

1

673,539

663,124

(2)

Items Related with Investing Activities:

Depreciation and Amortization

198,571

206,505

4

99,606

103,360

4

Participation in the Results of Associates

95,252

(26,802)

Loss on Disposal of Fixed Assets

-

-

-

-

Interest Income

(41,424)

(64,292)

55

(27,704)

(32,994)

19

Provisions

-

-

-

-

-

-

Sub-Total

1,545,054

1,638,898

6

745,441

706,688

(5)

Increase in Trade Receivables

108,978

53,057

(51)

110,369

113,706

3

Decrease in Recoverable Taxes and other Current Assets

121,591

(539,104)

(543)

152,003

(287,761)

(289)

Other Deferred Assets

(88,064)

(100)

(88,064)

-

(100)

Income Tax Paid

-

-

98,098

59,456

(39)

   Trade Accounts Payable

(225,731)

(349,424)

55

(326,727)

(422,816)

29

   Accrued Expenses and Others Payables

84,070

341,216

306

84,070

341,216

306

    Long Term Liabilities

-

-

-

-

-

Net Cash Flow Provided by Operating Activities

1,545,898

1,144,643

(26)

775,190

510,489

(34)

Investing Activities

  Investments in Associates

(1,508,002)

-

-

-

   Loans granted to Associates

(3,399,330)

-

-

-

   Loans repaid by Associates

2,163,210

-

-

-

   Investments in Machinery, Furniture and Equipment, net

(282,900)

(193,277)

(32)

(130,545)

(102,296)

(22)

   Investments in Rights to Use Airport Facilities

-

-

-

-

-

   Investments in Construction in Process

-

-

-

-

-

   Investments in Others

-

-

-

-

-

Interest Income

41,424

64,292

55

27,704

32,994

19

Net Cash Flow Provided by Investing Activities

(241,476)

(2,873,107)

1,090

(102,841)

(69,302)

(33)

Excess Cash to Use in Financing Activities:

1,304,422

(1,728,464)

(233)

672,349

441,187

(34)

Bank Loans

(184,998)

2,604,888

(1,508)

(92,499)

39,719

(143)

Dividends Paid

(1,080,000)

(1,200,000)

11

(1,080,000)

(1,200,000)

11

Tax on Dividends Paid

-

-

-

-

-

Net Cash Flow Provided by Financing Activities

(1,264,998)

1,404,888

(211)

(1,172,499)

(1,160,281)

(1)

Net Increase in Cash and Cash Equivalents

39,424

(323,576)

(921)

(500,150)

(719,094)

44

Cash and Cash Equivalents at Beginning of Period

1,529,667

2,265,427

48

2,069,241

2,660,945

29

Cash and Cash Equivalents at the End of Period

1,569,091

1,941,851

24

1,569,091

1,941,851

24

 

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

Consolidated Statement of Income from January 1 to June  30,  2013 and 2012

Thousands of Mexican pesos 

I t e m

 6M 

2012

 6M 

2013

 2Q 

2012

 2Q 

2013

                                  Mexican NIF 

 Transition Effects 

                           IFRS 

                                  Mexican NIF 

 Transition Effects 

                           IFRS 

                                  Mexican NIF 

 Transition Effects 

                           IFRS 

                                  Mexican NIF 

 Transition Effects 

                           IFRS 

Revenues

Aeronautical Services

1,460,960

1,460,960

1,569,317

1,569,317

701,374

701,374

754,894

-

754,894

Non-Aeronautical Services

841,819

841,819

912,528

912,528

405,948

405,948

442,870

-

442,870

Construction Services

258,710

258,710

176,080

176,080

168,189

168,189

85,653

-

85,653

Total Revenues

2,561,489

-

2,561,489

2,657,925

-

2,657,925

1,275,511

-

1,275,511

1,283,417

-

1,283,417

Operating Expenses

Cost of Services

457,559

65

457,624

466,050

(4)

466,046

231,106

(38)

231,068

249,909

(812)

249,097

Cost of Construction

258,710

258,710

176,080

176,080

168,189

168,189

85,653

85,653

General and Administrative Expenses

475,244

475,244

500,233

500,233

235,839

235,839

247,273

247,273

Total Operating Expenses

1,191,513

65

1,191,578

1,142,363

(4)

1,142,359

635,134

(38)

635,096

582,835

(812)

582,023

Operating Income

1,369,976

(65)

1,369,911

1,515,562

4

1,515,566

640,377

38

640,415

700,582

812

701,394

Comprehensive Financing Cost

Interest Receivable

41,424

41,424

64,292

64,292

27,704

27,704

32,994

-

32,994

Interest Payable

(20,144)

(20,144)

(38,931)

(38,931)

(9,107)

(9,107)

(22,423)

-

(22,423)

Exchange (Losses) Gains, net

(3,885)

(3,885)

(44,242)

(44,242)

14,332

14,332

(75,643)

-

(75,643)

Loss (Gains) on Valuation of Derivative 

-

0

-

0

-

-

Financial Instruments 

601

601

-

-

195

195

0

-

-

Participation in the Results of

Associates

(95,252)

(95,252)

26,802

26,802

Non-Ordinary Item

Non-Ordinary Item

46

(46)

-

14

(14)

-

61

(61)

-

6

(6)

-

Income Before Income Taxes

1,387,926

(19)

1,387,907

1,401,415

18

1,401,433

673,440

99

673,539

662,306

818

663,124

Provision for IETU

6,924

6,924

6,264

6,264

2,673

2,673

(728)

-

(728)

Provision for Income Tax

410,513

410,513

420,672

420,672

209,047

209,047

157,445

-

157,445

Provision for Asset Tax

5,731

5,731

5,731

5,731

2,865

2,865

2,865

-

2,865

Deferred Income Taxes

(46,396)

(46,396)

(184,276)

(184,276)

(4,461)

(4,461)

(156,975)

-

(156,975)

Deferred IETU

7,402

2,532

9,934

12,101

(171)

11,930

(217)

402

185

6,241

(229)

6,012

Net Income for the Year

1,003,752

(2,551)

1,001,201

1,140,923

189

1,141,112

463,533

(303)

463,230

653,458

1,047

654,505

Earnings per Share

3.35

(0.01)

3.34

3.80

0.00

3.80

1.55

(0.00)

1.54

2.18

0.00

2.18

Earnings per American Depositary Share            

(in U.S. Dollars)

2.57

(0.01)

2.56

2.92

0.00

2.92

1.19

(0.00)

1.19

1.67

0.00

1.67

Exchange rate per U.S. dollar Ps. 13.0279

 

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

Consolidated Balance Sheet as of  June 30, 2013 and 2012

Thousands of Mexican pesos 

I t e m

June 2013

December 2012

 Mexican NIF 

 Transition effects 

 IFRS 

 Mexican NIF 

 Transition effects 

 IFRS 

A s s e t s 

Current Assets

Cash and Cash Equivalents

1,941,851

1,941,851

2,265,427

2,265,427

Trade Receivables, net

391,181

391,181

444,238

444,238

Recoverable Taxes and Other Current Assets

978,073

(3,198)

974,875

459,310

(4,192)

455,118

Total Current Assets

3,311,105

(3,198)

3,307,907

3,168,975

(4,192)

3,164,783

Non Current Assets

Machinery, Furniture and Equipment, net

317,251

317,251

314,634

314,634

Airports Concessions, net

15,586,964

15,586,964

15,629,821

15,629,821

Investment in Associates

1,442,807

1,442,807

Deferred Employees' Statutory Profit Sharing 

-

-

-

Loans To Associates

1,314,093

1,314,093

Total Non Current Assets

18,661,115

-

18,661,115

15,944,455

-

15,944,455

Total  Assets

21,972,220

(3,198)

21,969,022

19,113,430

(4,192)

19,109,238

Liabilities and Stockholders' Equity

Current Liabilities

Trade Accounts Payable

11,425

11,425

8,694

8,694

Bank Loans

106,735

106,735

281,612

281,612

Accrued Expenses and Others Payables

757,115

26,071

783,186

380,930

23,744

404,674

Total Current Liabilities

875,275

26,071

901,346

671,236

23,744

694,980

Long Term Liabilities

Bank Loans

2,823,221

2,823,221

33,333

33,333

Deferred Income Taxes

1,379,789

1,379,789

1,499,707

1,499,707

Deferred Flat Rate Business Tax

418,643

(2,576)

416,067

406,542

(2,405)

404,137

Labor Obligations

17,787

(11,354)

6,433

16,089

(10,003)

6,086

Total Long Term Liabilities

4,639,440

(13,930)

4,625,510

1,955,671

(12,408)

1,943,263

Total Liabilities

5,514,715

12,141

5,526,856

2,626,907

11,336

2,638,243

Stockholders' Equity

Capital Stock

12,799,204

(5,031,928)

7,767,276

12,799,204

(5,031,928)

7,767,276

Legal Reserve

535,118

(17,614)

517,504

430,492

(17,614)

412,878

Share Repurchase Reserve

-

-

-

-

Net Income for the Period

1,140,923

189

1,141,112

2,092,509

(17,181)

2,075,328

Cumulative Effect of Conversion of Foreign Currency

30,057

30,057

IFRS Conversion Adjustment

-

5,045,078

5,045,078

-

5,045,078

5,045,078

Retained Earnings 

1,952,203

(11,064)

1,941,139

1,164,318

6,117

1,170,435

Total Stockholders' Equity

16,457,505

(15,339)

16,442,166

16,486,523

(15,528)

16,470,995

Total Liabilities and Stockholders' Equity

21,972,220

(3,198)

21,969,022

19,113,430

(4,192)

19,109,238

REVIEW OF THE IMPACT OF TRANSITIONING TO IFRS

Below is a description of significant changes on IFRS implementation:

a)  Inflation The Company determined the inflationary effects relating to the capital stock and legal reserve accounts should be eliminated in accordance with International Accounting Standards "IAS" 21 and 29, which were in effect on the date IFRS was adopted.

Based on IFRS 1, the Company has determined it does not have to eliminate the effects of inflation on concessions. This is due to the decision of the Company to apply the transition rules of IFRIC 12 as part of the initial adoption of IFRS 1, which allow for the exception from retrospective application in cases where the "impracticability" of reconstructing asset balances is too significant. Therefore, the Company has recorded the account balances previously registered under Mexican FRS, which contain the effects of inflation through December 31, 2007, as opening balances for the adoption of IFRIC 12.

b)  Property, plant and equipment The Company used the value of property, plant and equipment listed on the balance sheet on the date it adopted IFRS as the cost of property, plant and equipment as of the transition date.

c) Deferred taxes and deferred income tax or IETU tax The Company has determined that it must recognize both forms of taxes (income tax or flat tax for each one of its subsidiaries) for the determination of deferred taxes based on its income projections.

d) Employee profit sharing and labor liabilities On the date IFRS was adopted the Company eliminated the liability relating to deferred profit sharing and severance as an adjustment to its opening balance sheet.

In addition, MFRS D-3 "Employee Benefits", provided that all termination and severance benefits, including those paid in the case of involuntary termination, are recorded on an actuarial basis to estimate the corresponding liability.  Under IAS 19, an entity recognizes termination benefits as a liability whenever the entity is obligated to (a) terminate an employee's contract prior to its expiry or (b) establish termination benefits as a result of a buy-out plan.  As a result, ASUR cancelled its provisions for employee termination on the IFRS transition date.  In accordance with IFRS 1, "First-time Adoption of IFRS", ASUR recognized its actuarial gains and losses accumulated in net income at the transition date.  As a result, the balance sheet at the transition date reflects all liabilities related to employee benefits.  In accordance with IAS 19, ASUR will recognize future actuarial gains and losses from employee benefits in net income.

e) Creation of a reserve for unused vacations On the date IFRS was adopted, the Company recognized an accrual for the vacation rights not used by year-end, according to IAS 19 "Employee Benefits.

f) Non ordinary items in the income statement The line in the income statement named "Non ordinary items" has been reclassified as "Operating expenses" because IFRS does not recognize extraordinary items as a line in the income statement.

 

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