ASUR 3Q12 Passenger Traffic Up 10.18% YoY

Oct 23, 2012, 09:20 ET from Grupo Aeroportuario del Sureste, S.A.B. de C.V.

MEXICO CITY, Oct. 23, 2012 /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, today announced results for the three and nine-month periods ended September 30, 2012.

3Q12 Highlights1:

  • EBITDA2 increased by 17.81% to Ps.691.80 million
  • Total passenger traffic was up 10.18%
  • Total revenues rose by 16.50% due to increases of 14.27% in aeronautical revenues, 14.52% in non-aeronautical revenues, and 35.21% in construction services revenues
  • Commercial revenues per passenger increased by 5.30% to Ps.67.81
  • Operating profit increased by 20.44%
  • EBITDA margin increased to 56.61% from 55.98% in 3Q11

1.    Unless otherwise stated, all financial figures discussed in this announcement are unaudited, prepared in accordance with International Financial Reporting Standards (IFRS) and represent comparisons between the three- and nine-month periods ended September 30, 2012, and the equivalent three- and nine-month periods ended September 30, 2011.  Financial figures for the three- and nine-month periods ended September 30, 2011 have been restated to reflect IFRS.  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.12.8695.

2.    EBITDA means net income before: provision for taxes, deferred taxes, profit sharing, non-ordinary items, 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 third quarter of 2012, total passenger traffic increased year-over-year by 10.18%. Domestic passenger traffic increased by 17.21% while international passenger traffic rose by 3.49%.

The 17.21% growth in domestic passenger traffic growth was driven by increases at Cancun, Cozumel, Minatitlan, Oaxaca, Villahermosa and Oaxaca. The 3.49% growth in international passenger traffic resulted mainly from an increase of 3.32% in international traffic at the Cancun airport.

Passenger traffic for the nine-month period ended September 30, 2012 increased 9.31% compared to the same period last year, reflecting increases of 17.14% in domestic passenger traffic and 3.86% in international passenger traffic.

Table I: Domestic Passengers (in thousands)

Airport

3Q11

3Q12

% Change

9M 2011

9M

2012

% Change

Cancun

1,114.5

1,434.6

28.72

2,738.8

3,466.5

26.57

Cozumel

21.4

27.2

27.10

41.1

68.9

67.64

Huatulco

112.8

110.6

(1.95)

290.8

304.1

4.57

Merida

288.0

284.3

(1.28)

819.6

838.2

2.27

Minatitlan

24.5

31.9

30.20

75.0

93.3

24.40

Oaxaca

98.1

114.3

16.51

249.9

310.8

24.37

Tapachula

37.8

36.3

(3.97)

114.9

110.3

(4.00)

Veracruz

203.2

208.5

2.61

576.6

575.5

(0.19)

Villahermosa

213.2

229.5

7.65

578.8

658.3

13.74

TOTAL

2,113.5

2,477.2

17.21

5,485.5

6,425.9

17.14

Note:   Passenger figures exclude transit and general aviation passengers.

II: International Passengers (in thousands)

Airport

3Q11

3Q12

% Change

9M 2011

9M

2012

% Change

Cancun

2,068.2

2,136.8

3.32

7,288.4

7,575.9

3.94

Cozumel

64.1

66.7

4.06

310.5

303.1

(2.38)

Huatulco

3.7

4.7

27.03

52.3

53.5

2.29

Merida

22.9

26.5

15.72

70.4

76.6

8.81

Minatitlan

1.3

1.6

23.08

3.4

4.5

32.35

Oaxaca

13.5

14.2

5.19

37.3

40.6

8.85

Tapachula

1.6

1.8

12.50

5.7

5.8

1.75

Veracruz

30.2

28.3

(6.29)

71.6

77.3

7.96

Villahermosa

14.7

17.0

15.65

37.4

43.6

16.58

TOTAL

2,220.2

2,297.6

3.49

7,877.0

8,190.9

3.86

Note:   Passenger figures exclude transit and general aviation passengers.

Table III: Total Passengers (in thousands)

Airport

3Q11

3Q12

% Change

9M 2011

9M

2012

% Change

Cancun

3,182.7

3,571.4

12.21

10,027.2

11,042.4

10.12

Cozumel

85.5

93.9

9.82

351.6

372.0

5.80

Huatulco

116.5

115.3

(1.03)

343.1

357.6

4.23

Merida

310.9

310.8

(0.03)

890.0

914.8

2.79

Minatitlan

25.8

33.5

29.84

78.4

97.8

24.74

Oaxaca

111.6

128.5

15.14

287.2

351.4

22.35

Tapachula

39.4

38.1

(3.30)

120.6

116.1

(3.73)

Veracruz

233.4

236.8

1.46

648.2

652.8

0.71

Villahermosa

227.9

246.5

8.16

616.2

701.9

13.91

TOTAL

4,333.7

4,774.8

10.18

13,362.5

14,606.8

9.31

Note:   Passenger figures exclude transit and general aviation passengers.

Consolidated Results for 3Q12

Total revenues for 3Q12 increased year-over-year by 16.50% to Ps.1,222.01  million. This was mainly due to increases of:

  • 14.27% in revenues from aeronautical services, principally as a result of the 10.18% rise in passenger traffic;
  • 14.52% in revenues from non-aeronautical services, reflecting the 15.94% increase in commercial revenues detailed below; and
  • 35.21% in revenues from construction services as a result of 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 15.94% year-over-year during the quarter, principally due to the 10.18% increase in passenger traffic. There were increases in revenues in the following activities:

  • 41.10% in advertising;
  • 18.17% in retail operations;
  • 15.62% in car rental revenues;
  • 15.08% in banking and currency exchange services;
  • 13.95% in food and beverage;
  • 10.55% in duty-free stores;
  • 4.90% in ground transportation;
  • 4.11% in parking lot fees; and
  • 24.55% in other revenue.

These increases more than offset the 11.18% decline in teleservices.

Retail and Other Commercial Space Opened since June 30, 2011

Business Name

Type

Opening Date

Cancun

Traffic Tours

Tourism booth

September 2011

Starbucks Cafe

Food & beverage

July 2011

Merida

Sunglass Island

Retail

July 2012

Kukis

Retail

March 2012

Villahermosa

Operadora de Tiendas exclusivas

Retail

June 2012

Snack Bar Aqua

Food & beverage

June 2012

Tienda de Artesanias

Retail

August 2012

Veracruz

Rent a Matic Itza

Car rentals

August 2012

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 3Q12, ASUR recognized Ps.145.63 million in revenues from "Construction Services" because of improvements to its concessioned assets, a 35.21% year-on-year increase. 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 increase in Construction Revenues in 3Q12 did not result in a proportionate increase in the EBITDA Margin, which is equal to EBITDA divided by total revenues.

Total operating costs and expenses for 3Q12 increased 13.03% year-over-year. This was primarily due to the following increases:

  • 35.21% in construction costs, due to greater improvements made to the concessioned assets during the period;
  • 6.08% in costs of services, principally reflecting higher sales volumes, and therefore higher costs of sales at the convenience stores directly operated by ASUR, and higher fees paid to third parties in connection with ASUR's participation in international projects. Increased insurance costs, as well as the costs of a bond required in connection with an appeal of a decision overturning a tax credit, and higher maintenance expenses also contributed to the increase;
  • 9.50% in administrative expenses mainly due to higher professional fees paid to third parties and travel expenses in connection with the Munoz Marin Airport in San Juan, Puerto Rico ("LMM") project;
  • 17.76% in the technical assistance fee paid to ITA, reflecting the increase in EBITDA for the quarter (a factor in the calculation of the fee);
  • 15.03% 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
  • 4.47% in depreciation and amortization, resulting mainly from capitalized investments.  

Operating margin for the quarter increased to 48.34% from 46.76% in 3Q11. This was mainly due to the 16.50% increase in revenues which more than offset the 13.03% increase in expenses during the period.

Comprehensive Financing Gain (Loss) for 3Q12 was a Ps.6.69 million loss, compared to a Ps.21.2 million gain in 3Q11, principally due to a foreign exchange loss during the quarter as compared to a foreign exchange gain in 3Q11.   

During 3Q12, ASUR reported a foreign exchange loss of Ps.9.08 million which principally resulted from the 6.74% appreciation of the Mexican peso against the U.S. dollar during the period derived of a foreign currency net asset position.

Interest expense declined in 3Q12 by Ps.4.60 million year-on-year, principally reflecting lower debt levels as a result of the Ps.277.5 million in principal payments made during 3Q12. Interest income increased by Ps.1.53 million year-on-year reflecting higher investments resulting from the increase in net income during the period.

Comprehensive Financing Result (Cost)

3Q11

3Q12

Change

% Change

Interest income

(19,812)

21,342

1,530

8

Interest expenses

(13,674)

(9,079)

4,596

34

 

Loss (gains) on valuation of

derivative

637

--

(637)

(100.)

Foreign exchange gain (loss), net

14,436

(18,952)

(33,389)

(231)

Total

21,211

(6,689)

(27,901)

(132)

9M11

9M12

Change

% Change

Interest income

59,998

62,766

2,768

5

Interest expenses

(44,954)

(29,223)

15,731

(35)

Loss (gains) on valuation of

Derivative

2,061

601

(1,460)

(71)

Foreign exchange gain (loss), net

11,207

(22,838)

(34,045)

(304)

Total

28,312

11,306

(17,006)

(60)

2011

2012

Exchange rate at September

13.7994

12.8695

Exchange rate at June

11.7230

13.4084

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 3Q12 increased by 18.04%, or Ps.26.75 million year-over-year, principally due to the following factors:

  • Provisional IETU payments of Ps.5.40 million by some of ASUR's subsidiaries;
  • A Ps.18.55 million increase in the provision for income taxes, as a result of a higher taxable base resulting from the 16.50% increase in revenues during the period, which more than offset the 13.03% increase in operating costs.
  • A Ps.9.90 million increase in deferred income taxes resulting from the recognition of inflationary effects;
  • A Ps.2.65 million decline 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 3Q12 increased by 12.55% to Ps.409.07 million from Ps.363.45 million in 3Q11. Earnings per common share for the quarter were Ps.1.3636, or earnings per ADS (EPADS) of US$1.0595 (one ADS represents ten series B common shares). This compares with earnings per share of Ps.1.2115, or EPADS of US$0.9414, for the same period last year.

Table IV: Summary of Consolidated Results for 3Q12

3Q11

3Q12

% Change

Total Revenues

1,048,979

1,222,011

16.50

Aeronautical Services

615,896

703,766

14.27

Non-Aeronautical Services

325,378

372,618

14.52

            Commercial Revenues

282,158

327,130

15.94

Construction Services

107,705

145,627

35.21

Operating Profit

490,480

590,746

20.44

Operating Margin %

46.76%

48.34%

3.37%

EBITDA

587,213

691,802

17.81

EBITDA Margin %

55.98%

56.61%

1.13%

Net Income

363,451

409,066

12.55

Earnings per Share

1.2115

1.3636

12.55

Earnings per ADS in US$

0.9414

1.0595

12.55

Note:  U.S. dollar figures are calculated at the exchange rate of US$1 = Ps.12.8695.

Table V: Commercial Revenues per Passenger for 3Q12

3Q11

3Q12

% Change

Total Passengers ('000)

4,382

4,824

10.09

Total Commercial Revenues

282,158

327,130

15.94

Commercial revenues from direct       operations (1)

65.308

81,649

25.02

Commercial revenues excluding       direct operations

216,850

245,481

13.20

 

3Q11

3Q12

% Change

Total Commercial Revenue per Passenger

64.40

67.81

5.30

Commercial revenue from direct       operations per passenger (1)

14.90

16.93

13.62

Commercial revenue per passenger (excluding       direct operations)

49.50

50.88

2.79

Note: For purposes of this table, approximately 69,800 and 48,900 transit and general aviation passengers are included for 3Q11 and 3Q12, respectively.

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

Table VI: Operating Costs and Expenses for 3Q12

3Q11

3Q12

% Change

Cost of Services

236,382

250,766

6.08

Construction Costs              

107,704

145,627

35.21

Administrative

43,268

47,378

9.50

Technical Assistance

30,958

36,455

17.76

Concession Fees

43,454

49,983

15.03

Depreciation and Amortization

96,733

101,056

4.47

TOTAL

558,499

631,265

13.03

Consolidated Results for the Nine-Months Ended September 30, 2012

Total revenues for 9M12 increased year-over-year by 18.00% to Ps.3,783.5 million, mainly due to the following increases:

  • 14.66% in revenues from aeronautical services as a result of the 9.31% increase in passenger traffic during the period;
  • 19.78% in revenues from non-aeronautical services, principally as a result of the 21.44% increase in commercial revenues detailed below; and
  • 32.75% in construction services in connection with higher investments during the period.

Commercial revenues for 9M12 rose by 21.44% year-over-year, principally as a result of revenue increases in the following areas:

  • 38.76% in advertising;
  • 24.18% in retail operations;
  • 23.65% in other income;
  • 22.95% in duty-free stores;
  • 18.18% in banking and currency exchange services; 
  • 16.82% in food and beverage;
  • 14.54% in car rentals;
  • 12.35% in ground transportation services;
  • 4.41% in teleservice; and
  • 3.17% in parking lot fees.

Total operating costs and expenses for 9M12 rose 13.47%, mainly due to the following increases:

  • 32.75% in construction costs resulting from higher investments;
  • 7.52% in cost of services, principally reflecting higher energy costs, security and maintenance, and professional fees to third parties in connection with ASUR's participation in international bidding processes. Higher costs of sales as a result of higher sales volumes at the convenience stores directly operated by ASUR also contributed to the increase;
  • 10.07% in administrative expenses, principally due to travel expenses in connection with international bidding projects;
  • 19.86% in technical assistance costs, reflecting the corresponding increase in EBITDA during the period;
  • 15.81% in concession fees, mainly due to the increase in regulated revenues (a factor in the calculation of the fee); and
  • 4.80% in depreciation and amortization mainly due to changes in the depreciation and amortization rates.

Operating margin increased to 51.82% for 9M12, from 49.90% in 9M11.  This was mainly the result of the 18.00% growth in revenues which more than offset the 13.47% increase in operating expenses for the period.

Net income for 9M12 increased by 20.86% to Ps.1,410.27 million. Earnings per common share for the period were Ps.4.7009, or earnings per ADS (EPADS) of US$3.6527 (one ADS represents ten series B common shares).  This compares with Ps.3.8896, or EPADS of US$3.0224, for the same period last year.

Table VII: Summary of Consolidated Results for 9M12

  (in thousands)

9M11

9M12

% Change

Total Revenues

3,206,485

3,783,500

18.00

Aeronautical Services

1,887,992

2,164,726

14.66

Non-Aeronautical Services

1,013,898

1,214,437

19.78

Commercial Revenues

881,662

1,070,649

21.44

Construction Services

304,595

404,337

32.75

Operating Profit

1,600,024

1,960,657

22.54

Operating Margin %

49.90%

51.82%

3.84%

EBITDA

1,885,940

2,260,284

19.85

EBITDA Margin %

58.82%

59.74%

1.57%

Net Income

1,166,887

1,410,267

20.86

Earnings per Share

3.8896

4.7009

20.86

Earnings per ADS in US$

3.0224

3.6527

20.86

Note:    U.S. dollar figures are calculated at the exchange rate of US$1 = Ps.13.4084.

Table VIII: Commercial Revenues per Passenger for 9M12

(in thousands)

9M11

9M12

% Change

Total Passengers *('000)

13,517

14,759

9.19

Total Commercial Revenues

881,662

1,070,649

21.44

Commercial revenues from        direct operations (1)

191,115

249,444

30.52

Commercial revenues        excluding direct operations

690,547

821,205

18.92

 

9M11

9M12

% Change

Total Commercial Revenue per Passenger

65.23

72.54

11.21

Commercial revenue from       direct operations per       passenger (1)

14.14

16.90

19.52

Commercial revenue per       passenger (excluding direct      operations)

51.09

55.64

8.91

*     For purposes of this table, approximately 249,200 and 151,800 transit and general aviation passengers are included for 9M11 and 9M12, respectively.

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

Table IX: Operating Costs and Expenses for 9M12

(in thousands)

9M11

9M12

% Change

Cost of Services

658,852

708,390

7.52

Construction Costs

304,595

404,337

32.75

Administrative

123,549

135,992

10.07

Technical Assistance

99,300

119,020

19.86

Concession Fees

134,249

155,477

15.81

Depreciation and Amortization

285,916

299,627

4.80

TOTAL

1,606,461

1,822,843

13.47

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 9M12 were Ps.2,362.74 million, resulting in an annual average tariff per workload unit of Ps.157.06. ASUR's regulated revenues accounted for approximately 62.45% 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 September 30, 2012, Airport Concessions represented 82.31% of the Company's total assets, with current assets representing 16.02% and other assets representing 1.67%.

Cash and cash equivalents on September 30, 2012 were Ps.1,941.59 million, a 26.93% increase from the Ps.1,529.67 million in cash and cash equivalents recorded on December 31, 2011.

Shareholders' equity at the close of 3Q12 was Ps.15,806.59 million and total liabilities were Ps.2,936.43 million, representing 84.33% and 15.66% of total assets, respectively. Deferred liabilities represented 72.54% of the Company's total liabilities. 

Total bank debt at September 30, 2012 was Ps.414.4 million, including Ps.1.3 million in accrued interest. 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 based on 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 based on the Tasa de Interes Interbancaria de Equilibrio (TIIE) plus 0.75% and quarterly principal payments.

During the quarter, 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.  These loans remain subject to certain conditions precedent, including the negotiation of definitive documentation for the loans.  To date, ASUR has not yet made use of the authorized credit lines.

Capital Expenditures

During 3Q12, ASUR made investments of Ps.122.15 million as part of ASUR's ongoing plan to modernize its airports pursuant to its master development plans.

Recent Events

ASUR and Highstar Capital Win Bid to be Private Operator of Luis Munoz Marin Airport in San Juan, Puerto Rico

On July 19, 2012 ASUR announced that the Puerto Rico Public-Private Partnership Committee declared Aerostar Airport Holdings ("Aerostar") the winner of a public bidding process to become the private operators of the Luis Munoz Marin international airport in San Juan, Puerto Rico ("LMM Airport").  Aerostar is a limited liability company owned 50% by each of ASUR (through its Cancun Airport subsidiary) and Highstar Capital IV. 

LMM Airport handles over 8.5 million passengers per year and is served by over 14 airlines.  LMM airport generates over 8,000 direct and indirect jobs and recently opened the newly-constructed Terminal A, which is currently served by JetBlue. Aerostar intends to transform LMM into a world-class airport through a capital investment program of over $1.4 billion during the term of the lease, while working with the airport community and airlines to better serve passengers. 

On July 24, 2012 Aerostar signed a lease agreement (the "Lease Agreement") for LMM Airport with the Puerto Rico Ports Authority (the "PRPA"). The closing of the Lease Agreement, however, is subject to a number of conditions precedent, including approval of the Lease Agreement and the award of a Part 139 operating certificate by the U.S. Federal Aviation Administration ("FAA") as previously disclosed. The Lease Agreement has a term of 40 years and involves an upfront payment of $615 million, which is expected to be funded by a mixture of debt financing incurred by Aerostar and equity contributions by each of ASUR (through its Cancun Airport subsidiary) and Highstar Capital IV.

Following the execution of the Lease Agreement, Aerostar and the PRPA have undertaken a  number of critical steps towards the closing:

  • The PRPA submitted an application to the FAA for approval of the Lease under the FAA's Airport Privatization Pilot Program. 
  • Aerostar has also begun discussions with the FAA regarding its application for a Part 139 operating certificate.
  • Aerostar named the transition team for its operations at LMM airport.  The transition team has already begun meeting with airlines, concessionaires and other stakeholders at LMM Airport to help facilitate a smooth transition to the closing of the Lease.

The current capital structure for Aerostar is as follows: 

  • Each of Highstar and ASUR own 50% of the membership interests in Aerostar.
  • Aerostar has received financing commitments from a syndicate of international and Puerto Rican banks for a term loan of up to $350 million of the upfront leasehold fee, a term loan of $50 million for capital expenditures and a $10 million revolving credit facility. 
  • ASUR has committed to lend Aerostar up to $100 million to fund the payment of the upfront leasehold fee due under the Lease, which is subject to adjustment based on the amount of third party financing available to Aerostar.  The commitment for this loan provides that it would be subordinated to senior indebtedness, bear interest at LIBOR plus 2.00% and be required to be repaid by Aerostar from cash available for distribution in priority to equity distributions to ASUR and Highstar Capital IV. 
  • In exchange for ASUR's loan commitment, Highstar Capital IV has granted ASUR certain benefits, including an agreement that if Highstar Capital IV sells any of its interest in Aerostar and ASUR's Cancun airport subsidiary continues to hold at least 25% of Aerostar's membership units, ASUR will be entitled to 20% of Highstar Capital IV's realized investment return on such sale in excess of 14% per annum. 

For more details related to these recent events, refer to ASUR's press releases issued on July 19 and 24, and September 12, 2012.

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:

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)

The following table presents the principal effects of IFRS on Shareholders' Equity as of September 30, 2012, December 31, 2011 and January 1, 2011:

(In thousands of Mexican Pesos)

September 30, 2012

December 31, 2011

  January 1, 2011

Shareholders' Equity Under Mexican Financial Reporting Standards

15,820,904

15,487,813

14,795,457

IFRS Adjustments:

Deferred Employee Profit Sharing (Note b)

(3,862)

(3,862)

(2,905)

Severance Liability and actuarial gains and losses (Note e)

10,836

10,342

7,835

Reserve for Vacations (Note f)

(23,502)

(22,099)

(18,339)

Deferred IETU  (Note c)

2,217

4,218

3,534

Total IFRS Adjustments

(14,311)

(11,401)

(9,875)

Shareholders' Equity Under IFRS

15,806,593

15,476,412

14,785,582

See page 22 for notes on IFRS transition effects.

The following table presents the principal effects of IFRS on the Income Statement for the nine-month period ended on September 30, 2011 and 2012.

(In thousands of Mexican Pesos)

3Q12

3Q11

9M12

 

9M11

Jan-Dec 2011

Net Income Under Mexican Financial Reporting Standards

409,339

363,693

1,413,091

1,170,082

 

1,592,356

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

-203

565

580

2,138

 

3,244

Elimination of PTU difference

(957)

Recognition of accrued rights not used (Note f)

-601

-1,222

(1,403)

(3,234)

-3760

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

531

415

(2,001)

(2,099)

684

Net Income Under IFRS

409,066

363,451

1,410,267

1,166,887

1,591,567

Actuarial Gains and Losses

(265)

(184)

(86)

(553)

(737)

Comprehensive Net Income Under IFRS

408,801

363,267

1,410,181

1,166,334

1,590,830

See page 22 for notes on IFRS transition effects.

3Q12 Earnings Conference Call

Day:     

Wednesday, October 24, 2012

Time:   

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

Dial-in number: 

1-888-846-5003 (US & Canada) and 1-480-629-9856 (International & Mexico)

Access Code:  

4569419

Please dial in 10 minutes before the scheduled start time.

Replay:

Wednesday, October 24, 2012 at 1:00 PM US ET, ending at midnight US ET on Wednesday, October 31, 2012. Dial-in number: 1-877-870-5176 (US & Canada); 1-858-384-5517 (International & Mexico). Access Code: 4569419.

Analyst Coverage

Actinver Casa de Bolsa, Barclays, BBVA Bancomer, BofA Merrill 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.

Note: ASUR is covered by the aforementioned analysts. 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. 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

3Q 2011

3Q 2011 Per Workload Unit

3Q 2012

3Q 2012 Per Workload Unit

9M 2011

9M 2011 Per Workload Unit

9M 2012

9M 2012 Per Workload Unit

Cancun (1)

Aeronautical Revenues

454,019

139.7

528,224

145.2

1,415,338

138.4

1,635,179

145.2

Non-Aeronautical Revenues

284,069

87.4

328,370

90.3

893,570

87.4

1,085,231

96.4

Construction Services

42,927

13.2

89,560

24.6

134,114

13.1

256,127

22.7

Total Revenues

781,015

240.4

946,154

260.1

2,443,022

238.9

2,976,537

264.4

Operating Profit

402,638

123.9

477,132

131.2

1,264,357

123.6

1,599,883

142.1

EBITDA

465,997

143.4

541,508

148.9

1,451,431

141.9

1,792,010

159.2

Merida

Aeronautical Revenues

44,838

125.2

46,161

129.7

127,979

123.4

136,714

129.5

Non-Aeronautical Revenues

12,413

34.7

13,539

38.0

35,701

34.4

39,390

37.3

Construction Services

26,960

75.3

7,871

22.1

55,925

53.9

28,269

26.8

Other (2)

-

-

7

-

-

-

19

-

Total Revenues

84,211

235.2

67,578

189.8

219,605

211.8

204,392

193.6

Operating Profit

17,480

48.8

17,170

48.2

49,434

47.7

50,949

48.2

EBITDA

25,266

70.6

25,273

71.0

72,789

70.2

75,255

71.3

Villahermosa

Aeronautical Revenues

27,813

116.9

31,433

122.3

73,612

114.0

89,372

121.6

Non-Aeronautical Revenues

8,833

37.1

9,731

37.9

25,830

40.0

27,226

37.0

Construction Services

8,528

35.8

4,450

17.3

13,399

20.7

5,646

7.7

Other (2)

-

-

18

0.1

-

-

55

0.1

Total Revenues

45,174

189.8

45,632

177.6

112,841

174.7

122,299

166.4

Operating Profit

11,399

47.9

14,865

57.8

27,938

43.2

39,662

54.0

EBITDA

16,657

70.0

20,632

80.3

42,675

66.1

56,814

77.3

Other Airports (3)

Aeronautical Revenues

89,226

142.3

97,948

148.4

271,063

144.6

303,461

152.1

Non-Aeronautical Revenues

20,063

32.0

20,978

31.8

58,797

31.4

62,590

31.4

Construction Services

29,290

46.7

43,746

66.3

101,157

54.0

114,295

57.3

Other (2)

18,000

28.7

4,556

6.9

40,431

21.6

6,180

3.1

Total Revenues

156,579

249.7

167,228

253.4

471,448

251.6

486,526

243.9

Operating Profit

33,657

53.7

27,503

41.7

102,618

54.8

93,837

47.0

EBITDA

53,658

85.6

49,959

75.7

162,392

86.7

158,825

79.6

Holding & Service companies (4)

Construction Services

-

 n/a 

-

 n/a 

-

 n/a 

-

 n/a 

Other (2)

198,541

 n/a 

228,871

 n/a 

641,856

 n/a 

672,929

 n/a 

Total Revenues

198,541

 n/a 

228,871

 n/a 

641,856

 n/a 

672,929

 n/a 

Operating Profit

25,306

 n/a 

54,076

 n/a 

155,677

 n/a 

176,326

 n/a 

EBITDA

25,635

 n/a 

54,430

 n/a 

156,653

 n/a 

177,380

 n/a 

Consolidation Adjustment

Consolidation Adjustment

(216,541)

 n/a 

(233,452)

 n/a 

(682,287)

 n/a 

(679,183)

 n/a 

Group

Aeronautical Revenues

615,896

137.7

703,766

143.3

1,887,992

137.0

2,164,726

143.9

Non-Aeronautical Revenues

325,378

72.8

372,618

75.9

1,013,898

73.6

1,214,437

80.7

Construction Services

107,705

24.1

145,627

29.7

304,595

22.1

404,337

26.9

Total Revenues

1,048,979

234.6

1,222,011

248.9

3,206,485

232.6

3,783,500

251.5

Operating Profit

490,480

109.7

590,746

120.3

1,600,024

116.1

1,960,657

130.3

EBITDA

587,213

131.3

691,802

140.9

1,885,940

136.8

2,260,284

150.2

(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 September  30,  2012 and 2011

Thousands of Mexican pesos 

I t e m

 9M 

 9M 

%

 3Q 

 3Q 

%

2011

2012

Change

2011

2012

Change

Revenues

Aeronautical Services

1,887,992

2,164,726

14.66

615,896

703,766

14.27

Non-Aeronautical Services

1,013,898

1,214,437

19.78

325,378

372,618

14.52

Construction Services

304,595

404,337

32.75

107,705

145,627

35.21

Total Revenues

3,206,485

3,783,500

18.00

1,048,979

1,222,011

16.50

Operating Expenses

Cost of Services

658,852

708,390

7.52

236,382

250,766

6.08

Cost of Construction

304,595

404,337

32.75

107,704

145,627

35.21

General and Administrative Expenses

123,549

135,992

10.07

43,268

47,378

9.50

Technical Assistance

99,300

119,020

19.86

30,958

36,455

17.76

Concession Fee

134,249

155,477

15.81

43,454

49,983

15.03

Depreciation and Amortization

285,916

299,627

4.80

96,733

101,056

4.47

Total Operating Expenses

1,606,461

1,822,843

13.47

558,499

631,265

13.03

Operating Income

1,600,024

1,960,657

22.54

490,480

590,746

20.44

Comprehensive Financing Cost

28,312

11,305

(60.07)

21,211

(6,691)

(131.54)

Non-Ordinary Item

Non-Ordinary Item

-

-

-

-

-

-

Income Before Income Taxes

1,628,336

1,971,962

21.10

511,691

584,055

14.14

Provision for IETU

11,624

12,328

6.06

4,190

5,404

28.97

Provision for Income Tax

455,529

573,494

25.90

144,432

162,981

12.84

Provision for Asset Tax

8,336

8,597

3.13

3,126

2,866

(8.32)

Deferred Income Taxes

(41,324)

(49,300)

19.30

(12,804)

(2,904)

(77.32)

Deferred IETU

27,284

16,576

(39.25)

9,296

6,642

(28.55)

Net Income for the Year

1,166,887

1,410,267

20.86

363,451

409,066

12.55

Earning per Share

3.89

4.70

20.86

1.2115

1.3636

12.55

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

3.02

3.65

20.86

0.9414

1.0595

12.55

Exchange rate per dollar Ps. 12.8695

 

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

Consolidated Balance Sheet as of  September 30, 2012 and 2011

Thousands of Mexican pesos 

I t e m

September 2012

December 2011

January 2011

A s s e t s 

Current Assets

Cash and Cash Equivalents

1,941,590

1,529,667

1,442,879

Trade Receivables, net

284,672

462,102

389,960

Recoverable Taxes and Other Current Assets

775,963

894,520

921,193

Total Current Assets

3,002,225

2,886,289

2,754,032

Non Current Assets

Machinery, Furniture and Equipment, net

313,536

306,504

305,629

Airports Concessions, net

15,427,260

15,405,490

14,945,330

Total  Assets

18,743,021

18,598,283

18,004,991

Liabilities and Stockholders' Equity

Current Liabilities

Trade Accounts Payable

17,031

28,876

10,738

Bank Loans

374,254

374,640

243,102

Accrued Expenses and Others Payables

376,251

357,197

261,159

Total Current Liabilities

767,536

760,713

514,999

Long Term Liabilities

Bank Loans

38,889

321,950

647,503

Deferred Income Taxes

1,457,797

1,385,685

1,461,089

Deferred Flat Rate Business Tax

665,260

648,685

591,836

Labor Obligations

6,946

4,838

3,982

Total Long Term Liabilities

2,168,892

2,361,158

2,704,410

Total Liabilities

2,936,428

3,121,871

3,219,409

Stockholders' Equity

Capital stock

7,767,276

7,767,276

7,767,276

Legal Reserve

412,878

333,261

264,092

Share Repurchase Reserve

-

-

-

Net Income for the Period

1,410,267

1,591,566

1,275,143

IFRS Conversion Adjustment

5,044,255

5,044,341

5,045,078

Retained Earnings 

1,171,917

739,968

433,993

Total Stockholders' Equity

15,806,593

15,476,412

14,785,582

Total Liabilities and Stockholders' Equity

18,743,021

18,598,283

18,004,991

 

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

 Consolidated Statement of Cash flow from January 1 to September  30,  2012 and 2011

Thousands of Mexican pesos

Related

 9M 

 9M 

 % Change 

 3Q 

 3Q 

 % Change 

2011

2012

2011

2012

Operating Activities

Income Before Income Taxes

1,628,336

1,971,962

21

511,691

584,055

14

Items Related with Investing Activities:

Depreciation and Amortization

285,916

299,627

5

96,733

101,056

4

Loss on Disposal of Fixed Assets

-

-

-

-

Interest Income

(59,998)

(62,766)

5

(19,811)

(21,342)

8

Provisions

-

-

34,179

(100)

-

-

Sub-Total

1,854,254

2,208,823

19

622,792

663,769

7

Increase in Trade Receivables

39,636

177,429

348

18,063

68,451

279

Decrease in Recoverable Taxes and other Current Assets

85,505

231,373

171

48,761

197,846

306

Other Deferred Assets

-

-

-

-

-

-

Income Tax Paid

(147,899)

(348,434)

136

(147,899)

(348,434)

136

   Trade Accounts Payable

-

-

-

-

-

-

   Accrued Expenses and Others Payables

12,782

(157,487)

(1,332)

157

(15,826)

(10,180)

   Long Term Liabilities

-

-

-

-

-

Net Cash Flow Provided by Operating Activities

1,844,278

2,111,704

15

541,874

565,806

4

Investing Activities

   Investments in Machinery, Furniture and Equipment, net

(305,253)

(405,050)

33

(144,558)

(122,150)

(16)

   Investments in Rights to Use Airport Facilities

-

-

-

-

-

-

   Investments in Construction in Process

-

-

-

-

-

-

   Investments in Others

-

-

-

-

-

-

Interest Income

59,998

62,766

5

19,811

21,342

8

Net Cash Flow Provided by Investing Activities

(245,255)

(342,284)

40

(124,747)

(100,808)

(19)

Excess Cash to Use in Financing Activities:

1,599,023

1,769,420

11

417,127

464,998

11

Bank Loans

(100,831)

(277,497)

175

(42,497)

(92,499)

118

Dividends Paid

(900,000)

(1,080,000)

20

-

-

-

Tax on Dividends Paid

(300,000)

(100)

-

-

-

Net Cash Flow Provided by Financing Activities

(1,300,831)

(1,357,497)

4

(42,497)

(92,499)