ASUR 2Q14 Passenger Traffic Up 10.65% YOY

MEXICO CITY, July 21, 2014 /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, 2014.

2Q14 Highlights1:

  • EBITDA2 increased by 8.58% to Ps.873.78 million
  • Total passenger traffic was up 10.65%
  • Total revenues increased by 4.46%, reflecting increases of 7.55% in aeronautical revenues and 9.17% in non-aeronautical revenues, partially offset by a decline of 47.14% in construction services revenues
  • Commercial revenues per passenger declined by 1.42% to Ps.73.03
  • Operating profit increased by 8.51%
  • EBITDA margin rose to 65.18% from 62.70% in 2Q13

__

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, 2014, and the equivalent three- and six-month periods ended June 30, 2013.  Results are expressed in 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.12.9712.

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 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 2014, total passenger traffic increased year-over-year by 10.65%. Domestic passenger traffic rose 11.82% while international passenger traffic increased by 9.74%.

The 11.82% growth in domestic passenger traffic was driven by increases at across all airports. The 9.74% growth in international passenger traffic resulted mainly from an increase of 9.74% in international traffic at the Cancun airport.

It should be noted that during 2013 Holy Week fell in March while in 2014 it fell in April.

Passenger traffic for 1H14 increased by 8.34%, reflecting increases of 8.57% in domestic passenger traffic and 8.18% in international passenger traffic.

 

Table I: Domestic Passengers (in thousands)


Airport

2Q13

2Q14

%

Change

1H2013

1H 2014

%

Change

Cancun

1,239.8

1,390.5

12.16

2,251.1

2,416.5

7.35

Cozumel

19.7

20.7

5.08

40.4

36.1

(10.64)

Huatulco

97.5

98.2

0.72

188.7

185.7

(1.59)

Merida

286.0

318.2

11.26

556.8

620.1

11.37

Minatitlan

36.1

55.8

54.57

68.1

107.9

58.44

Oaxaca

108.2

110.6

2.22

210.2

217.4

3.44

Tapachula

34.4

34.8

1.16

69.7

75.5

8.32

Veracruz

226.8

273.0

20.37

436.6

495.9

13.58

Villahermosa

235.0

251.7

7.11

450.9

483.9

7.32

TOTAL

2,283.5

2,553.4

11.82

4,272.6

4,638.9

8.57

Note: Passenger figures exclude transit and general aviation passengers.

 

II: International Passengers (in thousands)


Airport

2Q13

2Q14

%

Change

1H2013

1H 2014

%

Change

Cancun

2,728.6

2,994.4

9.74

6,003.8

6,483.9

8.00

Cozumel

97.6

113.6

16.39

228.2

266.0

16.56

Huatulco

15.0

13.5

(10.00)

70.0

75.1

7.29

Merida

26.3

27.7

5.32

57.9

58.8

1.55

Minatitlan

1.9

2.1

10.53

3.5

4.0

14.29

Oaxaca

12.6

13.5

7.14

27.6

29.7

7.61

Tapachula

1.9

2.9

52.63

3.8

6.0

57.89

Veracruz

22.9

21.7

(5.24)

45.6

42.2

(7.46)

Villahermosa

13.9

15.8

13.67

26.7

30.7

14.98

TOTAL

2,920.7

3,205.2

9.74

6,467.1

6,996.3

8.18

Note: Passenger figures exclude transit and general aviation passengers.


 

Table III: Total Passengers (in thousands)


Airport

2Q13

2Q14

%

Change

1H2013

1H 2014

%

Change

Cancun

3,968.4

4,384.9

10.50

8,254.9

8,900.5

7.82

Cozumel

117.3

134.3

14.49

268.6

302.1

12.47

Huatulco

112.5

111.7

(0.71)

258.7

260.7

0.77

Merida

312.3

345.9

10.76

614.7

678.8

10.43

Minatitlan

38.0

57.9

52.37

71.6

111.9

56.28

Oaxaca

120.8

124.1

2.73

237.8

247.1

3.91

Tapachula

36.3

37.7

3.86

73.5

81.5

10.88

Veracruz

249.7

294.8

18.06

482.2

538.0

11.57

Villahermosa

248.9

267.5

7.47

477.6

514.5

7.73

TOTAL

5,204.2

5,758.6

10.65

10,739.7

11,635.2

8.34

Note: Passenger figures exclude transit and general aviation passengers.

 

Consolidated Results for 2Q14

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 in 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$118.00 million capital contribution to Aerostar corresponding to its 50% membership interest in Aerostar. ASUR accounts for its ownership stake in Aerostar through the equity method, in accordance with IFRS. In addition, ASUR made a US$100.00 million subordinated shareholder loan to Aerostar in 1Q13.

Total revenues for 2Q14 increased year-over-year by 4.46% to Ps.1,340.63 million. This was mainly due to increases of:

  • 7.55% in revenues from aeronautical services, mainly as a result of a 10.65% increase in passenger traffic;
  • 9.17% in revenues from non-aeronautical services, principally reflecting the 9.07% increase in commercial revenues detailed below.

These increases were partially offset by the 47.14% decline in revenues from construction services that resulted from 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 9.07% year-over-year during 2Q14, principally due to a 10.65% increase in total passenger traffic. There were increases in revenues from the following activities:

  • 9.31% in retail operations;
  • 14.44% in food and beverage;
  • 16.60% in car rental revenues;
  • 26.31% in other revenue;
  • 3.69% in advertising;
  • 16.56% in parking lot fees;
  • 20.04% in banking and currency exchange services;
  • 21.20% in ground transportation; and
  • 16.66% in teleservices.

Duty-free revenues, however, declined 1.24% year-over-year.

 

Retail and Other Commercial Space
Opened since June 30, 2013




Business Name

Type

Opening Date

Cancun



Farmacies (4)

Retail

June 2013

NI Digital

Teleservices

October 2013

Convenience Stores (3 in T1)

Convenience Store

November 2013

Entretenimiento A Tu Alcance (4 in T1)

Food & Beverage

November 2013

Servicios Turisticos

Tourism Booth

November 2013

MAC T3

Retail

December 2013

MOBO (2 in T2)

Retail

November 2013

Dufry  T1

Retail

December 2013

Island Cabo (2 in T1)

Retail

December 2013

Sunglass Hut

Retail

December 2013

Oakley

Retail

January 2014

Secure Wrap

Retail

February 2014

Sunglass Hut

Retail

March 2014

Blanc Du Nil

Retail

March 2014

U-Save

Car rental

June 2014

Wayan Natural (T1)

Retail

June 2014

Cronometria (T2)

Retail

June 2014

Harley Davidson (T1)

Car rental

June 2014

Cinco Soles (T2)

Retail

June 2014

Merida



Abito

Retail

March 2014

Veracruz



Sunglass Hut

Retail

February 2014

Villahermosa



National

Car Rental

December 2013

Sunglass Hut

Retail

March 2014

Cozumel



FOX

Car Rental

May 2014

Sunglass Hut

Retail

May 2014

Oaxaca



Rentame

Car Rentals

December 2013

Sunglass Hut

Retail

March 2014

Huatulco



Sunglass Hut

Retail

March 2014

Minatitlan



Sunglass Hut

Retail

March 2014

 

 Table IV: Commercial Revenues per Passenger for 2Q14



2Q13

2Q14

% Change

Total Passengers ('000)

5,245

5,803

10.63

Total Commercial Revenues

388,574

423,813

9.07

Commercial revenues from direct operations (1)

87,974

101,285

15.13

Commercial revenues excluding direct operations

300,600

322,528

7.29






2Q13

2Q14

% Change

Total Commercial Revenue per Passenger

74.08

73.03

(1.42)

Commercial revenue from direct operations per passenger (1)

16.77

17.45

4.05

Commercial revenue per passenger (excluding direct operations)

57.31

55.58

(3.02)



Note:

For purposes of this table, approximately 41,000 and 44,600 transit and general aviation passengers are included in 2Q13 and 2Q14, 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 2Q14, ASUR recognized Ps.45.28 million in revenues from "Construction Services", a 47.14% year-on-year decrease due to lower capital expenditures in 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 decline in Construction Revenues in 2Q14 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 2Q14 declined 0.42% year-over-year, primarily due to the following decreases:

  • 47.14% in construction costs, reflecting lower levels of capital improvements made to concessioned assets during the period; and
  • 3.02% in administrative expenses, reflecting higher expenses in 2Q13, principally professional fees and travel expenses related to the SJU privatization project, as well as the preparation of the Master Development Plan.

These declines were partially offset by the following increases:

  • 8.79% in cost of services, principally due to the reopening of Terminal 1 at Cancun Airport in November 2013, as well as the higher cost of sales derived from the increase in sales at convenience stores directly operated by ASUR.  
  • 8.80% in the technical assistance fee paid to ITA, reflecting the increase in EBITDA for the quarter (a factor in the calculation of the fee);
  • 7.88% 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
  • 9.06% in depreciation and amortization, resulting mainly from capitalized investments.

 

Table V: Operating Costs and Expenses for 2Q14



2Q13

2Q14

% Change

Cost of Services

249,097

270,993

8.79

Construction Costs              

85,653

45,278

(47.14)

Administrative

46,502

45,098

(3.02)

Technical Assistance

42,313

46,036

8.80

Concession Fees

55,099

59,441

7.88

Depreciation and Amortization

103,360

112,721

9.06

TOTAL

582,024

579,567

(0.42)

 

Operating margin for the quarter increased to 56.77% from 54.65% in 2Q13, reflecting an increase of 4.46% in revenues and a decline of 0.42% in expenses during the period.

Comprehensive Financing Gain (Loss) for 2Q14 was a Ps.11.01 million gain, compared to a Ps.65.07 million loss in 2Q13.  This was principally due to the impact of the 0.64% appreciation of the Mexican peso against the U.S. dollar on ASUR's foreign currency net liability position as compared to a 5.39% depreciation in 2Q13.

 

Table VI: Comprehensive Financing Result (Cost)



2Q13

2Q14

Change

% Change

Interest income

32,993

25,018

(7,975)

(24.17)

Interest expenses

(22,442)

(21,349)

1,073

4.79

(Loss) gains on valuation of

Derivatives

--

--

--

--

Foreign exchange gain (loss), net

(75,642)

7,343

82,985

(109.71)

Total

(65,071)

11,012

76,083

(116.92)


 

Income (Loss) from Equity Investment in Joint Venture. During 2Q14 our equity in the income of Aerostar, our joint venture with Highstar Capital IV and its affiliated funds, was a net gain of Ps.21.89 million. In addition, ASUR recorded a Ps.9.07 million loss 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 appreciation of the peso against the U.S. dollar in 2Q14. In 2Q13, ASUR reported a net gain of Ps.26.80 million from our equity in the income of Aerostar in 2Q13 and a Ps.77.07 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 2Q14 total passenger traffic at the SJU airport was 2,260,472.

Income Taxes.

On January 1, 2014, a comprehensive Income Tax Law reform package entered into effect, repealing the IETU tax and causing the cancellation of deferred IETU. As a result, ASUR completed a financial valuation of its subsidiaries that were subject to this tax and now must recognize a deferred income tax.

Income taxes for 2Q14 increased by Ps.230.60 million, or 2,675.6% year-over-year, principally due to the following factors:

  • A Ps.0.70 million decline in IETU as a result of the repeal of the IETU Law starting on January 1, 2014;
  • A Ps.62.21 million increase in the provision for income taxes, reflecting a Ps.47.8 million benefit reported in 2Q13 resulting from the Mexican tax amnesty program. The increase also reflects the fact that the Veracruz and Villahermosa airports began recognizing income tax from December 2013. 
  • A Ps.175.08 million increase in deferred income taxes resulting from the recognition of a Ps.152.51 million benefit from the reduction in the amortization rate applicable to the concession to 15% which was retroactively applied to periods beginning in 2006. The increase also reflects the recognition of the effects of inflation in the residual value of assets at the Veracruz and Villahermosa airports as a result of the repeal of the IETU Law and the increase in the applicable tax rate to 30% from 28% according to the new provisions of the Income Tax Law as of January 1, 2014.
  • A Ps.6.01 million decrease in deferred IETU principally due to the repeal of the IETU Law.

Net income for 2Q14 declined by 15.24% to Ps.554.75 million from Ps.654.50 million in 2Q13. Earnings per common share for the quarter were Ps.1.8492, or earnings per ADS (EPADS) of US$1.4256 (one ADS represents ten series B common shares). This compares with earnings per share of Ps.2.1817, or EPADS of US$1.6819, for the same period last year. This decline principally reflects the benefit in 2Q13 from the Mexican tax amnesty program, as well as the negative impact from the increase in the Income Tax Rate from 28% to 30% as of January 2014.


  

Table VII: Summary of Consolidated Results for 2Q14



2Q13

2Q14

% Change

Total Revenues

1,283,417

1,340,630

4.46

Aeronautical Services

754,894

811,884

7.55

Non-Aeronautical Services

442,870

483,468

9.17

            Commercial Revenues

388,574

423,813

9.07

Construction Services

85,653

45,278

(47.14)

Operating Profit

701,393

761,063

8.51

Operating Margin %

54.65%

56.77%

3.87%

EBITDA

804,753

873,784

8.58

EBITDA Margin %

62.70%

65.18%

3.94%

Net Income

654,505

554,746

(15.24)

Earnings per Share

2.1817

1.8492

(15.24)

Earnings per ADS in US$

1.6819

1.4256

(15.24)

Note: U.S. dollar figures are calculated at the exchange rate of US$1 = Ps.12.9712.

 

Consolidated Results for 1H14

Total revenues for 1H14 increased year-over-year by 2.48% to Ps.2,723.76 million, mainly due to the following increases:

  • 5.21% in revenues from aeronautical services as a result of the 8.34% increase in passenger traffic during the period;
  • 10.27% in revenues from non-aeronautical services, principally as a result of the 10.29% increase in commercial revenues detailed below.

These increases were partially offset by a 62.29% decline in construction services in connection with lower capital investments during the period.

Commercial revenues for 1H14 rose by 10.29% year-over-year, principally as a result of revenue increases in the following areas: 

  • 11.79% in retail operations;
  • 2.26% in duty-free stores;
  • 13.61% in food and beverage;
  • 17.12% in car rentals;
  • 22.99% in other income;
  • 4.45% in advertising;
  • 14.46% in parking lot fees;
  • 19.27% in banking and currency exchange services; 
  • 15.31% in ground transportation services; and
  • 9.60% in teleservices.

 

Table VIII: Commercial Revenues per Passenger for 1H14

(in thousands)



1H13

1H14

% Change

Total Passengers *('000)

10,828

11,729

8.32

Total Commercial Revenues

803,070

885,735

10.29

Commercial revenues from direct operations (1)

179,437

209,625

16.82

Commercial revenues excluding direct operations

623,633

676,110

8.41






1H13

1H14

% Change

Total Commercial Revenue per Passenger

74.17

75.52

1.82

Commercial revenue from direct operations per passenger (1)

16.57

17.87

7.85

Commercial revenue per passenger (excluding direct operations)

57.60

57.65

0.09



*   

For purposes of this table, approximately 88,700 and 93,500 transit and general aviation passengers are included for 1H13 and 1H14, 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 1H14 declined by 1.55% year-on-year. This was primarily due to the following declines:

  • 62.29% in construction costs, reflecting lower committed improvements made to concessioned assets during the period; and
  • 5.43% in administrative expenses, principally reflecting professional fees and travel expenses in connection with SJU airport in 1H13.

These declines were more than offset the following increases:

  • 13.97% in cost of services, principally due to the reopening of Terminal 1 at Cancun Airport in November 2013, as well as the higher cost of sales derived from the increase in sales at convenience stores directly operated by ASUR. The increase also reflects higher maintenance and security expenses, 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;
  • 6.05% in technical assistance costs, reflecting the corresponding increase in EBITDA during the period;
  • 6.18% in concession fees, mainly due to the increase in regulated revenues (a factor in the calculation of the fee); and
  • 9.32% in depreciation and amortization resulting mainly from higher capitalized investments.

Excluding accumulated expenses and reimbursements in connection with the SJU privatization project, cost of services would have increased by 9.00%.

 

Table IX: Operating Costs and Expenses for 1H14 (in thousands)



1H13

1H14

% Change

Cost of Services

466,046

531,131

13.97

Construction Costs

176,080

66,391

(62.29)

Administrative

88,963

84,135

(5.43)

Technical Assistance

90,635

96,116

6.05

Concession Fees

114,131

121,179

6.18

Depreciation and Amortization

206,505

225,756

9.32

TOTAL

1,142,360

1,124,709

(1.55)

 

Operating margin increased to 58.71% in 1H14, from 57.02% in 1H13.  This was mainly the result of the 2.48% increase in revenues and the 1.55% decline in operating expenses for the period.

Comprehensive Financing Gain (Loss) for 1H14 was a Ps.13.51 million gain, compared to an Ps.18.88 million loss in 1H13, principally due to a Ps.6.94 million foreign exchange gain in 1H14 resulting from the impact of the 0.86% appreciation of the Mexican peso against the U.S. dollar during the period on ASUR's foreign currency net liability position. This compares with a Ps.44.2 million foreign exchange loss in 1H13 resulting from the impact of the 5.39% depreciation of the Mexican peso against the U.S. dollar during the period on ASUR's foreign currency net liability position.

Interest income declined by Ps.16.89 million year-on-year reflecting lower income from short-term investments resulting from the decline in cash balance during the period related to the dividend payment in December 2013. Interest expense increased by Ps.1.90 million, reflecting the disbursement of loans from BBVA Bancomer and Merrill Lynch in February 2013.

 

Table X: Comprehensive Financing Gain (Loss)



1H13

1H14

Change

% Change

Interest income

64,292

47,400

(16,892)

(26.27)

Interest expenses

(38,931)

(40,832)

(1,901)

4.88

 

(Loss) gains on valuation of

derivatives

0

0

0

0

Foreign exchange gain (loss), net

(44,242)

(6,941)

51,183

(115.69)

Total

(18,880)

13,510

32,290

(171.56)

 

Income (Loss) from Equity Investment in Joint Venture.

During 1H14, our equity in the income of Aerostar was a net income of Ps.32.44 million. In addition, ASUR recorded a Ps.24.08 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 appreciation 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.

Total passenger traffic at SJU for 1H14 was 4,418,833.

Net income for 1H14 increased by 4.21% to Ps.1,189.12 million. Earnings per common share for the six-month period were Ps.3.9637 or earnings per ADSs (EPADS) of US$3.0558 (one ADS represents ten series B common shares).  This compares with Ps.3.8037, or EPADS of US$2.9324, for 1H13.

 

Table XI: Summary of Consolidated Results for 1H14

(in thousands)



1H13

1H14

% Change

Total Revenues

2,657,925

2,723,725

2.48

Aeronautical Services

1,569,317

1,651,106

5.21

Non-Aeronautical Services

912,528

1,006,269

10.27

Commercial Revenues

803,070

885,735

10.29

Construction Services

176,080

66,391

(62.29)

Operating Profit

1,515,565

1,599,056

5.51

Operating Margin %

57.02%

58.71%

2.96%

EBITDA

1,722,070

1,824,812

5.97

EBITDA Margin %

64.79%

67.00%

3.40%

Net Income

1,141,112

1,189,120

4.21

Earnings per Share

3.8037

3.9637

4.21

Earnings per ADS in US$

2.9324

3.0558

4.21

Note: U.S. dollar figures are calculated at the exchange rate of US$1 = Ps.12.9712.

  

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 1H14 were Ps.1,985.27 million, resulting in an annual average tariff per workload unit of Ps.166.72. ASUR's regulated revenues accounted for approximately 72.89% 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, 2014, airport concessions represented 69.82% of the Company's total assets, with current assets representing 16.34% and other assets representing 13.84%.

Cash and cash equivalents on June 30, 2014, were Ps.2,351.97 million, a 86.73% increase from the Ps.1,259.56 million in cash and cash equivalents recorded on December 31, 2013.

Shareholders' equity at the close of 2Q14 was Ps.17,461.01 million and total liabilities were Ps.4,943.76 million, representing 77.93% and 22.06% of total assets, respectively. Deferred liabilities represented 33.62% of the Company's total liabilities. 

Total bank debt at June 30, 2014 was Ps.2,806.42 million, including Ps.12.05 million in accrued interest and commissions.

During 2Q14, ASUR made aggregate principal payments of Ps.5.5 million in connection with the Ps.50.00 million three-year credit agreement entered by our Veracruz airport subsidiary.

Capital Expenditures

During 2Q14, ASUR made investments of Ps.49.21 million as part of ASUR's ongoing plan to modernize its airports pursuant to its master development plans. During 1H14 capital expenditures totaled Ps.85.39 million.

2Q14 Earnings Conference Call

Day:              

Tuesday, July 22, 2014



Time:              

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



Dial-in number:   

1-800-930-1344 (US & Canada) and 1-913-312-0848     

(International & Mexico)



Access Code:

1212090




Please dial in 10 minutes before the scheduled start time.



Replay:     

Tuesday, July 22, 2014 at 1:00 PM US ET, ending at midnight US ET on Tuesday, July 29, 2014. Dial-in number: 1-877-870-5176 (US & Canada); 1-858-384-5517 (International & Mexico). Access Code: 1212090.

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, Deutsche Bank, Grupo Bursatil Mexicano, Grupo Financiero Interacciones, Grupo Financiero Monex, HSBC, 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 Munoz Marin 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
2013

2Q 2013 Per
Workload Unit

2Q 
2014

2Q 2014 Per
Workload Unit

1H 

2013

1H 2013 Per
Workload Unit

1H  
2014

1H 2014 Per
Workload Unit

Cancun (1)









Aeronautical Revenues

576,111

142.5

614,833

138.3

1,206,031

143.5

1,250,580

138.5

Non-Aeronautical Revenues

396,426

98.1

430,519

96.8

821,459

97.7

902,529

100.0

Construction Services

34,045

8.4

6,863

1.5

73,410

8.7

22,108

2.4

Total Revenues

1,006,582

249.0

1,052,215

236.6

2,100,900

249.9

2,175,218

240.9

Operating Profit

581,333

143.8

558,826

125.7

1,275,685

151.8

1,251,684

138.6

EBITDA

646,133

159.8

629,234

141.5

1,405,203

167.2

1,391,981

154.2

Merida









Aeronautical Revenues

45,820

127.3

53,581

136.0

90,306

127.7

105,656

136.7

Non-Aeronautical Revenues

14,047

39.0

14,756

37.5

27,610

39.1

29,514

38.2

Construction Services

113

0.3

3,467

8.8

139

0.2

3,467

4.5

Other (2)

8

-

7

-

15

-

15

-

Total Revenues

59,988

166.6

71,812

182.3

118,070

167.0

138,652

179.4

Operating Profit

13,973

38.8

18,895

48.0

29,617

41.9

40,944

53.0

EBITDA

22,762

63.2

27,743

70.4

47,193

66.8

58,602

75.8

Villahermosa









Aeronautical Revenues

30,696

119.0

34,304

123.8

59,353

119.9

66,423

124.4

Non-Aeronautical Revenues

9,827

38.1

12,263

44.3

19,022

38.4

23,505

44.0

Construction Services

1,641

6.4

4,668

16.9

626

1.3

6,813

12.8

Other (2)

18

0.1

19

0.1

37

0.1

39

0.1

Total Revenues

42,182

163.5

51,254

185.0

79,038

159.7

96,779

181.2

Operating Profit

12,627

48.9

16,831

60.8

24,427

49.3

33,048

61.9

EBITDA

18,459

71.5

21,882

79.0

36,065

72.9

44,387

83.1

Other Airports (3)









Aeronautical Revenues

102,267

148.2

109,165

140.9

213,627

150.2

228,447

145.3

Non-Aeronautical Revenues

22,570

32.7

25,930

33.5

44,437

31.2

50,721

32.3

Construction Services

49,854

72.3

30,280

39.1

101,905

71.7

34,003

21.6

Other (2)

11,057

16.0

15,067

19.4

11,111

7.8

15,137

9.6

Total Revenues

185,748

269.2

180,443

232.8

371,080

261.0

328,307

208.8

Operating Profit

34,344

49.8

41,893

54.1

72,725

51.1

81,961

52.1

EBITDA

57,794

83.8

69,599

89.8

119,514

84.0

137,008

87.2

Holding & Service companies (4)









Services of construction

-

 n/a 

-

 n/a 

-

 n/a 

-

 n/a 

Other (2)

250,526

 n/a 

329,538

 n/a 

470,368

 n/a 

574,451

 n/a 

Total Revenues

250,526

 n/a 

329,538

 n/a 

470,368

 n/a 

574,451

 n/a 

Operating Profit

59,116

 n/a 

124,618

 n/a 

113,111

 n/a 

191,419

 n/a 

EBITDA

59,605

 n/a 

125,326

 n/a 

114,095

 n/a 

192,834

 n/a 

Consolidation Adjustment









Consolidation Adjustment

(261,609)

 n/a 

(344,632)

 n/a 

(481,531)

 n/a 

(589,642)

 n/a 

Group









Aeronautical Revenues

754,894

141.1

811,884

137.8

1,569,317

142.3

1,651,106

138.7

Non-Aeronautical Revenues

442,870

82.8

483,468

82.0

912,528

82.7

1,006,269

84.5

Construction Services

85,653

16.0

45,278

7.7

176,080

16.0

66,391

5.6

Total Revenues

1,283,417

239.8

1,340,630

227.5

2,657,925

241.0

2,723,765

228.7

Operating Profit

701,393

131.1

761,063

129.1

1,515,565

137.4

1,599,056

134.3

EBITDA

804,753

150.4

873,784

148.3

1,722,070

156.1

1,824,812

153.2










(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,  2014 and 2013

Thousands of Mexican pesos 


































I t e m


 1H 


 1H 


 % Change 


 2Q 


 2Q 


 % Change 




2013


2014



2013


2014




















Revenues
















Aeronautical Services


1,569,317


1,651,106


5.21


754,894


811,884


7.55




















Non-Aeronautical Services


912,528


1,006,269


10.27


442,870


483,468


9.17




















Construction Services


176,080


66,391


(62.29)


85,653


45,278


(47.14)



















Total Revenues


2,657,925


2,723,765


2.48


1,283,417


1,340,630


4.46



















Operating Expenses
































Cost of Services


466,046


531,131


13.97


249,097


270,993


8.79




Cost of Construction


176,080


66,391


(62.29)


85,653


45,278


(47.14)




General and Administrative Expenses


88,963


84,135


(5.43)


46,502


45,098


(3.02)




Technical Assistance


90,635


96,116


6.05


42,313


46,036


8.80




Concession Fee


114,131


121,179


6.18


55,099


59,441


7.88




Depreciation and Amortization


206,505


225,756


9.32


103,360


112,721


9.06



Total Operating Expenses


1,142,360


1,124,709


(1.55)


582,024


579,567


(0.42)



















Operating Income


1,515,565


1,599,056


5.51


701,393


761,063


8.51



















Comprehensive Financing Cost


(18,880)


13,510


(171.56)


(65,071)


11,012


(116.92)



















Participation in the Results of















Associates


(95,252)


32,442


(134.06)


26,802


21,892


(18.32)



Non-Ordinary Item
















Non-Ordinary Item


-


-


-


-


-


-



































Income Before Income Taxes


1,401,433


1,645,008


17.38


663,124


793,966


19.73




















Provision for IETU


6,264


116


(98.16)


(728)


-


(100.00)




Provision for Income Tax


420,672


455,461


8.27


157,445


219,657


39.51




Provision for Asset Tax


5,731


3,847


(32.87)


2,865


1,453


(49.30)




Deferred Income Taxes


(184,276)


(3,536)


(98.08)


(156,975)


18,111


(111.54)




Deferred IETU


11,930


-


(100.00)


6,012


-


(100.00)




















Net Income for the Year


1,141,112


1,189,120


4.21


654,505


554,746


(15.24)



















Earnings per share


3.8037


3.9637


4.21


2.1817


1.8492


(15.24)



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


2.9324


3.0558


4.21


1.6819


1.4256


(15.24)



Exchange rate per dollar Ps. 12.9712






























 

 


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

Consolidated Balance Sheet as of  June 30, 2014 and 2013

Thousands of Mexican pesos 



I t e m


June 2014


December 2013


Change


% Change

















A s s e t s 












Current Assets













Cash and Cash Equivalents


2,351,972


1,259,562


1,092,410


86.73





Trade Receivables, net


339,049


467,410


(128,361)


(27.46)





Recoverable Taxes and Other Current Assets


969,376


827,142


142,234


17.20

















Total Current Assets


3,660,397


2,554,114


1,106,283


43.31

















Non Current Assets













Machinery, Furniture and Equipment, net


322,740


322,072


668


0.21





Airports Concessions, net


15,642,703


15,790,796


(148,093)


(0.94)





Investment in Associates


1,421,074


1,400,957


20,117


1.44





Loans to Associated Companies


1,357,857


1,348,555


9,302


0.69

















Total  Assets


22,404,771


21,416,494


988,277


4.61

















Liabilities and Stockholders' Equity












Current Liabilities













Trade Accounts Payable


11,557


9,997


1,560


15.61





Bank Loans


29,884


41,804


(11,920)


(28.51)





Accrued Expenses and Others Payables


463,668


616,167


(152,499)


(24.75)




Total Current Liabilities


505,109


667,968


(162,859)


(24.38)

















Long Term Liabilities













Bank Loans


2,776,537


2,799,058


(22,521)


(0.80)





Deferred Income Taxes


1,654,858


1,658,395


(3,537)


(0.21)





Deferred Flat Rate Business Tax


0


-


0


-





Labor Obligations


7,255


6,857


398


5.80




Total Long Term Liabilities


4,438,651


4,464,310


(25,659)


(0.57)

















Total Liabilities


4,943,760


5,132,278


(188,518)


(3.67)

















Stockholders' Equity













Capital Stock


7,767,276


7,767,276


(0)


(0.00)





Legal Reserve


618,418


517,504


100,914


19.50





Share Repurchase Reserve


-


-


-


-





Net Income for the Period


1,189,120


2,296,873


(1,107,753)


(48.23)





Cumulative Effect of Conversion of Foreign Currency

24,082


36,407


(12,325)


(33.85)





IFRS Conversion Adjustment


5,045,078


5,045,078


0


0.00





Retained Earnings 


2,817,037


621,078


2,195,959


353.57





Total Stockholders' Equity


17,461,012


16,284,216


1,176,796


7.23

















Total Liabilities and Stockholders' Equity


22,404,771


21,416,494


988,277


4.61
















 

 

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

 Consolidated Statement of Cash Flow as of June 30,  2014 and 2013

Thousands of Mexican pesos















Related


 1H 


 1H 


%


 2Q 


 2Q 


%


2013


2014


Change


2013


2014


Change





























Operating Activities



























Income Before Income Taxes


1,401,433


1,645,008


17


663,124


793,966


20

Items Related with Investing Activities:













      Depreciation and Amortization


206,505


225,756


9


103,360


112,721


9

      Participation in the Results of Associates


95,252


(32,442)




(26,802)


(21,892)



      Loss on Disposal of Fixed Assets






-






-

      Interest Income


(64,292)


(47,400)


(26)


(32,994)


(25,018)


(24)

      Financial Derivative Instruments






-







      Provisions






-






-








-






-

Sub-Total


1,638,898


1,790,922


9


706,688


859,777


22















Increase in Trade Receivables


53,057


128,360


142


113,706


204,907


80

Decrease in Recoverable Taxes and other Current Assets


(539,104)


(155,383)


(71)


(287,761)


(27,798)


(90)

Other Deferred Assets


-




-


-




-

Income Tax Paid


-


(564,673)


-


59,456


(353,989)


(695)

Income Tax on dividends


-


(287,149)


-


-




-

   Trade Accounts Payable


(349,424)


229,433


(166)


(422,816)


95,419


(123)

   Accrued Expenses and Others Payables


341,216




(100)


341,216




(100)

    Long Term Liabilities


-




-


-




-















Net Cash Flow Provided by Operating Activities


1,144,643


1,141,510


(0)


510,489


778,316


52















Investing Activities













   Investments in Associates



(1,508,002)


-


(100)


-




-

   Loans granted to Associates


(3,399,330)


-


(100)


-




-

   Loans repaid by Associates


2,163,210


-


(100)


-




-

   Investments in Machinery, Furniture and Equipment, net


(193,277)


(85,390)


(56)


(102,296)


(49,213)


(52)

   Investments in Rights to Use Airport Facilities


-




-


-




-

   Investments in Construction in Process


-




-


-




-

   Investments in Others


-




-


-




-

Interest Income


64,292


47,400


(26)


32,994


25,018


(24)















Net Cash Flow Provided by Investing Activities


(2,873,107)


(37,990)


(99)


(69,302)


(24,195)


(65)















Excess Cash to Use in Financing Activities:


(1,728,464)


1,103,521


(164)


441,187


754,121


71















Bank Loans


2,604,888


(11,111)


(100)


39,719


(5,556)


(114)

Dividends Paid


(1,200,000)




(100)


(1,200,000)




(100)

Tax on Dividends Paid


-


0


-


-


0


-















Net Cash Flow Provided by Financing Activities


1,404,888


(11,111)


(101)


(1,160,281)


(5,556)


(100)















Net Increase in Cash and Cash Equivalents


(323,576)


1,092,410


(438)


(719,094)


748,565


(204)















Cash and Cash Equivalents at Beginning of Period


2,265,427


1,259,562


(44)


2,660,945


1,603,406


(40)















Cash and Cash Equivalents at the End of Period


1,941,851


2,351,972


21


1,941,851


2,351,972


21















 

 

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

Consolidated Statement of Income from January 1 to June  30,  2014 and 2013

Thousands of Mexican pesos 










































I t e m


 1H 


 1H 


 2Q 


 2Q 




2013


2014


2013


2014






 Mexican NIF 

 Transition effects 

 IFRS 


 Mexican NIF 

 Transition effects 

 IFRS 


 Mexican NIF 

 Transition effects 

 IFRS 


 Mexican NIF 

 Transition effects 

 IFRS 



Revenues




















Aeronautical Services


1,569,317


1,569,317


1,651,106


1,651,106


754,894


754,894


811,884


811,884
























Non-Aeronautical Services


912,528


912,528


1,006,269


1,006,269


442,870


442,870


483,468


483,468
























Construction Services


176,080


176,080


66,391


66,391


85,653


85,653


45,278


45,278























Total Revenues


2,657,925

-

2,657,925


2,723,765

-

2,723,765


1,283,417

-

1,283,417


1,340,630

-

1,340,630























Operating Expenses








































Cost of Services


466,050

(4)

466,046


529,738

1,393

531,131


249,909

(812)

249,097


270,084

909

270,993




Cost of Construction


176,080


176,080


66,391


66,391


85,653


85,653


45,278


45,278




General and Administrative Expenses


500,233


500,233


527,187


527,187


247,273


247,273


263,296


263,296



Total Operating Expenses


1,142,363

(4)

1,142,359


1,123,317

1,393

1,124,709


582,835

(812)

582,023


578,658

909

579,567























Operating Income


1,515,562

4

1,515,566


1,600,449

(1,393)

1,599,056


700,582

812

701,394


761,972

(909)

761,063























Comprehensive Financing Cost




















Interest Receivable


64,292


64,292


47,400


47,400


32,994


32,994


25,018


25,018




Interest Payable


(38,931)


(38,931)


(40,832)


(40,832)


(22,423)


(22,423)


(21,349)


(21,349)




Exchange (losses) Gains, net


(44,242)


(44,242)


6,941


6,941


(75,643)


(75,643)


7,343


7,343




Loss (Gains) on Valuation of Derivative 


-


-


-


-


-


-


-


-




Financial Instruments 


-


-


-


-


-


-


-


-























Participation in the Results of



















Associates


(95,252)


(95,252)


32,442


32,442


26,802


26,802


21,892


21,892



Non-Ordinary Item




















Non-Ordinary Item


14

(14)

(0)


220

(220)

-


6

(6)

-


215

(215)

-











































Income Before Income Taxes


1,401,415

18

1,401,433


1,646,182

(1,173)

1,645,008


662,306

818

663,125


794,660

(694)

793,966
























Provision for IETU


6,264


6,264


116


116


(728)


(728)


0


-




Provision for Income Tax


420,672

-

420,672


168,312

287,149

455,461


157,445

-

157,445


219,657


219,657




Provision for Asset Tax


5,731


5,731


3,847


3,847


2,865


2,865


1,453


1,453




Deferred Income Taxes


(184,276)


(184,276)


(3,536)


(3,536)


(156,975)


(156,975)


18,111


18,111




Deferred IETU


12,101

(171)

11,930


-


-


6,241

(229)

6,012


-


-
























Net Income for the Year


1,140,923

189

1,141,112


1,477,443

(288,322)

1,189,120


653,458

1,047

654,505


555,440

(694)

554,746























Earnings per share


3.80

0.00

3.80


4.92

(0.96)

3.96


2.18

0.00

2.18


1.85

(0.00)

1.85



Earnings per American Depositary Share

(in U.S. Dollars)


2.93

0.00

2.93


3.80

(0.74)

3.06


1.68

0.00

1.68


1.43

(0.00)

1.43



Exchange rate per dollar Ps. 12.9712


















 

 

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

Consolidated Balance Sheet as of  June 30, 2014 and 2013

Thousands of Mexican pesos 



I t e m


June 2014


December 2013







 Mexican NIF 

 Transition

effects 

 IFRS 


 Mexican NIF 

 Transition

effects 

 IFRS 




A s s e t s 












Current Assets













Cash and Cash Equivalents


2,351,972


2,351,972


1,259,562


1,259,562





Trade Receivables, net


339,049


339,049


467,410


467,410





Recoverable Taxes and Other Current Assets


971,888

(2,512)

969,376


542,628

284,514

827,142

















Total Current Assets


3,662,909

(2,512)

3,660,397


2,269,600

284,514

2,554,114

















Non Current Assets













Machinery, Furniture and Equipment, net


322,740


322,740


322,072


322,072





Airports Concessions, net


15,642,703


15,642,703


15,790,796


15,790,796





Investment in Associates


1,421,074


1,421,074


1,400,957


1,400,957





Deferred Employees' Statutory Profit Sharing 


-


-


-


-





Loans To Associated companies


1,357,857


1,357,857


1,348,555


1,348,555

















Total Non Current Assets


18,744,374

-

18,744,374


18,862,380

-

18,862,380

















Total  Assets


22,407,283

(2,512)

22,404,771


21,131,980

284,514

21,416,494

















Liabilities and Stockholders' Equity












Current Liabilities













Trade Accounts Payable


11,557


11,557


9,997


9,997





Bank Loans


29,884


29,884


41,804


41,804





Accrued Expenses and Others Payables


435,362

28,306

463,668


589,180

26,987

616,167

















Total Current Liabilities


476,804

28,306

505,109


640,981

26,987

667,968

















Long Term Liabilities













Bank Loans


2,776,537


2,776,537


2,799,058


2,799,058





Deferred Income Taxes


1,654,858


1,654,858


1,658,395


1,658,395





Deferred Flat Rate Business Tax


0


0


-


-





Labor Obligations


16,437

(9,182)

7,255


16,019

(9,162)

6,857

















Total Long Term Liabilities


4,447,833

(9,182)

4,438,651


4,473,472

(9,162)

4,464,310

















Total Liabilities


4,924,636

19,124

4,943,760


5,114,453

17,825

5,132,278

















Stockholders' Equity













Capital Stock


12,799,204

(5,031,928)

7,767,276


12,799,204

(5,031,928)

7,767,276





Legal Reserve


636,032

(17,614)

618,418


535,118

(17,614)

517,504





Share Repurchase Reserve


-


-


-


-





Net Income for the Period


1,477,443

(288,322)

1,189,120


2,018,292

278,581

2,296,873





Cumulative Effect of Conversion of Foreign Currency

24,082


24,082


36,407


36,407





IFRS Conversion Adjustment


-

5,045,078

5,045,078


-

5,045,078

5,045,078





Retained Earnings 


2,545,886

271,152

2,817,037


628,506

(7,428)

621,078


















Total Stockholders' Equity


17,482,647

(21,635)

17,461,012


16,017,527

266,689

16,284,216

















Total Liabilities and Stockholders' Equity


22,407,283

(2,512)

22,404,771


21,131,980

284,514

21,416,494
















 

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



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