ASUR 4Q15 Passenger Traffic Up 9.73% YOY

Feb 22, 2016, 16:10 ET from Grupo Aeroportuario del Sureste, S.A.B. de C.V.

MEXICO CITY, Feb. 22, 2016 /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 Cancún Airport and eight other airports in southeast Mexico, as well as a 50% JV partner in Aerostar Airport Holdings, LLC, operator of the Luis Muñoz Marín International Airport in San Juan, Puerto Rico, today announced results for the three- and twelve-month periods ended December 31, 2015.

4Q15 Highlights1:

  • EBITDA2 increased by 23.69% to Ps.1,126.19 million
  • Total passenger traffic was up 9.73%
  • Total revenues increased by 72.37%, reflecting increases of 14.25% in aeronautical revenues, 26.53% in non-aeronautical revenues, and 279.88% in construction services revenues
  • Commercial revenues per passenger increased by 16.27% to Ps.88.70
  • Operating profit increased by 26.50%
  • EBITDA margin was 38.77% compared with 54.02% in 4Q14
  • Adjusted EBITDA margin3, excluding the effect of IFRIC12, was 70.71% compared with 67.95% in 4Q14
  1. Unless otherwise stated, all financial figures discussed in this announcement are unaudited, prepared in accordance with International Financial Reporting Standards (IFRS) and represent comparisons between the three- and twelve-month periods ended December 31, 2015, and the equivalent three- and twelve-month periods ended December 31, 2014.  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.17.2487.
  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.
  3. Adjusted EBITDA Margin excludes the effect of IFRIC12 with respect to the construction or improvements to concessioned assets, as explained in page 5 of this report. Adjusted EBITDA Margin is calculated by dividing EBITDA by total revenues less construction services revenues.   Like EBITDA Margin, Adjusted EBITDA Margin should not be considered as an indicator of our operating performance or as an alternative to cash flow as an indicator of liquidity and is not defined under U.S. GAAP or IFRS and may be calculated differently by different companies.

Passenger Traffic

4Q15 total passenger traffic increased year-over-year by 9.73%, reflecting growth of 10.06% in domestic passenger traffic and 9.43% in international passenger traffic.

The 10.06% increase in domestic passenger traffic was driven by increases at all of ASUR's airports. The 9.43% growth in international passenger traffic resulted mainly from an increase of 10.46% in traffic at the Cancun airport.

Total passenger traffic for FY15 increased by 12.88%, reflecting growth of 13.49% in domestic passenger traffic driven by increases at all of ASUR's airports. The 12.39% increase in international passenger traffic resulted primarily from an increase of 13.34% at the Cancun airport.

Table I: Domestic Passengers (in thousands)

Airport

4Q14

4Q15

%

Change

FY14

FY15

%

Change

Cancún

1,385.0

1,503.7

8.57

5,483.5

6,027.4

9.92

Cozumel

26.0

36.5

40.38

85.1

110.1

29.38

Huatulco

123.2

126.6

2.76

415.9

517.2

24.36

Mérida

362.8

427.6

17.86

1,319.6

1,546.4

17.19

Minatitlán

60.5

63.6

5.12

225.9

246.1

8.94

Oaxaca

138.5

165.7

19.64

484.8

599.6

23.68

Tapachula

49.9

72.4

45.09

163.7

254.8

55.65

Veracruz

288.4

294.2

2.01

1,063.5

1,166.9

9.72

Villahermosa

298.0

316.8

6.31

1,057.0

1,220.2

15.44

TOTAL

2,732.3

3,007.1

10.06

10,299.0

11,688.7

13.49

Note: Passenger figures exclude transit and general aviation passengers.                           

Table II: International Passengers (in thousands)

Airport

4Q14

4Q15

%

Change

FY14

FY15

%

Change

Cancún

2,844.0

3,141.5

10.46

11,971.9

13,569.1

13.34

Cozumel

77.4

76.8

(0.78)

429.4

443.7

3.33

Huatulco

23.7

22.0

(7.17)

103.8

101.5

(2.22)

Mérida

28.7

28.8

0.35

117.3

117.2

(0.09)

Minatitlán

2.3

2.9

26.09

8.9

10.3

15.73

Oaxaca

12.8

13.8

7.81

57.5

63.6

10.61

Tapachula

2.5

2.5

0.00

11.5

10.9

(5.22)

Veracruz

27.9

19.1

(31.54)

94.0

83.0

(11.70)

Villahermosa

15.2

13.4

(11.84)

64.3

52.9

(17.73)

TOTAL

3,034.5

3,320.7

9.43

12,858.6

14,452.2

12.39

Note: Passenger figures exclude transit and general aviation passengers.

Table III: Total Passengers (in thousands)

Airport

4Q14

4Q15

%

Change

FY14

FY15

%

Change

Cancún

4,229.0

4,645.2

9.84

17,455.4

19,596.5

12.27

Cozumel

103.4

113.3

9.57

514.5

553.8

7.64

Huatulco

146.9

148.6

1.16

519.7

618.7

19.05

Mérida

391.5

456.4

16.58

1,436.9

1,663.6

15.78

Minatitlán

62.8

66.5

5.89

234.8

256.4

9.20

Oaxaca

151.3

179.5

18.64

542.3

663.2

22.29

Tapachula

52.4

74.9

42.94

175.2

265.7

51.66

Veracruz

316.3

313.3

(0.95)

1,157.5

1,249.9

7.98

Villahermosa

313.2

330.2

5.43

1,121.3

1,273.1

13.54

TOTAL

5,766.8

6,327.8

9.73

23,157.6

26,140.9

12.88

Note: Passenger figures exclude transit and general aviation passengers.

Consolidated Results for 4Q15

Total revenues for 4Q15 rose 72.37% year-over-year to Ps.2,905.16 million, mainly due to increases of:

  • 14.25% in revenues from aeronautical services, mainly as a result of the 9.73% increase in passenger traffic;
  • 26.53% in revenues from non-aeronautical services, principally reflecting the 27.61% increase in commercial revenues detailed below; and
  • 279.88% in revenues from construction services that resulted from higher 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 operations, and parking lot fees.

Commercial revenues increased by 27.61% year-over-year in 4Q15, principally due to a 9.73% increase in total passenger traffic. There were increases in revenues from the following activities:

  • 35.50% in retail operations;
  • 17.11% in duty free;
  • 22.44% in food and beverage operations;
  • 44.65% in car rental revenues;
  • 54.62% in other revenue;
  • 16.48% in advertising;
  • 9.35% in parking lot fees;
  • 22.93% in banking and currency exchange services;
  • 22.34% in ground transportation; and
  • 29.96% in teleservices.

 

Retail and Other Commercial Space Opened since December 31, 2014

Business Name

Type

Opening Date

Cancun

Prisonart

Retail

February 2015

 

Cinco Soles (T2)

Retail

February 2015

 

Banamex (1 ATM)

Banking

February 2015

 

Sunglass Hut Mexico

Retail

March 2015

Kipling

Retail

June 2015

Banamex

Banking

August 2015

Banamex

Banking

August 2015

Star Island café

Food & Beverage

August 2015

Gasolinera

Gas Station

September 2015

Roger Leather Boutique

er Store

Retail

December 2015

US$ 10 Store

Retail

December 2015

US$ 10 Store

Retail

December 2015

Coconut's

Food & Beverage

December 2015

Mac

Retail

December 2015

Merida

Watch My Watch

Retail

September 2015

Veracruz

Sunglass Hut

Retail

December 2015

Oaxaca

Hertz

Car Rental

October 2015

Huatulco

Snack Bar

Food & Beverage

November 2015

Minatitlan

Salon VIP

Business Lounge

February 2015

* Only includes new stores opened during the period and excludes remodelings or contract renewals.

Table IV: Commercial Revenues per Passenger for 4Q15

4Q14

4Q15

% Change

Total Passengers ('000)

5,815

6,382

9.76

Total Commercial Revenues

443,586

566,059

27.61

Commercial revenues from direct operations (1)

100,123

94,962

(5.15)

Commercial revenues excluding direct operations

343,463

471,097

37.16

 

4Q14

4Q15

% Change

Total Commercial Revenue per Passenger

76.29

88.70

16.27

Commercial revenue from direct operations per passenger (1)

17.22

14.88

(13.59)

Commercial revenue per passenger (excluding direct operations)

59.07

73.82

24.97

Note: For purposes of this table, approximately 47,840 and 54,600 transit and general aviation passengers are included in 4Q14 and 4Q15, respectively.

  1. Revenues from direct commercial operations represent ASUR's operation of convenience stores in airports, as well as the direct sale of advertising space through April 30, 2015, when advertising sales were concessioned to a third party.

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 relevant period. During 4Q15, ASUR recognized Ps.1,312.53 million in revenues from "Construction Revenues," a year-on-year increase of 279.88%, reflecting higher 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 Costs have been included in ASUR's income statement as a result of the application of IFRIC 12, the amount of Construction Revenues does not have an impact on EBITDA, but it does have an impact on EBITDA margin, as the increase in revenues that relate to Construction Revenues does not result in a corresponding increase in EBITDA.

As a result, 4Q15 EBITDA Margin was 38.77% compared with 54.02% in 4Q14. Adjusted EBITDA Margin, however, which excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets, was 70.71% in 4Q15 compared with 67.95% in 4Q14.

Total operating costs and expenses for 4Q15 rose 113.41% year-over-year, primarily due to the following increases:

  • 279.88% in construction costs, reflecting higher levels of capital improvements made to concessioned assets during the period;
  • 26.11% in administrative expenses, principally reflecting higher marketing and professional fees;
  • 23.60% in the technical assistance fee paid to ITA, reflecting the increase in EBITDA for the quarter (a factor in the calculation of the fee);
  • 16.63% in concession fees paid to the Mexican government, mainly due to an increase in regulated revenues (a factor in the calculation of the fee);
  • 1.67% in cost of services, mainly due to higher software license fees and maintenance expenses. The higher cost of sales derived from the convenience stores directly operated by ASUR also contributed to this increase; and
  • 4.13% in depreciation and amortization, resulting mainly from capitalized investments.

Excluding construction costs, operating costs and expenses rose 7.67% to Ps.585.68 million.

  Table V: Operating Costs and Expenses for 4Q15

4Q14

4Q15

% Change

Cost of Services

278,730

283,379

1.67

Administrative

41,360

52,161

26.11

Technical Assistance

47,963

59,282

23.60

Concession Fees

61,403

71,617

16.63

Depreciation and Amortization

114,508

119,240

4.13

Operating Costs and Expenses Excluding Construction Costs

543,964

585,679

7.67

Construction Costs    

345,514

1,312,527

279.88

TOTAL

889,478

1,898,206

113.41

Operating margin for the quarter was 34.66% compared with 47.23% in 4Q14, reflecting increases of 113.41% in expenses and 72.37% in revenues.

Adjusted operating margin, which excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets, and is calculated as operating profit divided by total revenues less construction services revenues, was 63.23% in 4Q15 compared with 59.40% in 4Q14.

Comprehensive Financing Gain (Loss) for 4Q15 was a Ps.0.56 million loss, compared to a Ps.106.75 million loss in 4Q14.  ASUR reported a 4Q15 foreign exchange loss of Ps.17.3 million due to the effect of the 2.03% depreciation of the Mexican peso against the U.S. dollar in 4Q15 on ASUR's foreign currency net liability position. This reflects a year-over-year decrease compared to the Ps.126.96 million loss in 4Q14 resulting from the Mexican peso depreciation of 9.74% in that period.

In addition, in 4Q15, ASUR recognized a Ps.26.85 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 stockholders' equity derived from the depreciation of the peso against the U.S. dollar.

Table VI: Comprehensive Financing Result (Cost)

4Q14

4Q15

Change

% Change

Interest income

40,612

44,625

4,013

9.88

Interest expenses

(20,403)

(27,856)

(7,453)

36.53

Foreign exchange gain (loss), net

(126,961)

(17,326)

109,635

(86.35)

Total

(106,752)

(557)

106,195

(99.48)

Income (Loss) from Equity Investment in Joint Venture. During 4Q15, our equity in the income of Aerostar, our joint venture with Highstar Capital IV and its affiliated funds, was a net loss of Ps.13.43 million. In addition, ASUR recorded a Ps.26.85 million gain in stockholders' equity resulting from the translation effect of Aerostar's financial statements (which are denominated in U.S. dollars), relating to the valuation of the shareholders' equity derived from the depreciation of the peso against the U.S. dollar in 4Q15. In 4Q14, ASUR reported a net loss of Ps.17.30 million from our equity in the income of Aerostar and a Ps.144.71 million gain in stockholders' equity resulting from the translation effect of Aerostar's financial statements relating to the valuation of the shareholders' equity derived from the depreciation of the peso against the U.S. dollar.

During 4Q15, total passenger traffic at SJU airport increased 6.79% to 2,130,361 from 1,994,854 in 4Q14.

Income Taxes for 4Q15 increased by Ps.103.43 million year-over-year, principally due to the following factors:

  • A Ps.128.19 million increase in the provision for income taxes, reflecting a higher taxable income base at the Veracruz and Cancun airports, as well as at Cancun Airport Services; and
  • A Ps.24.02 million decline in deferred income taxes reflecting the recognition of the effects of inflation in the fiscal tax balance.

Net income for 4Q15 increased by 42.40% to Ps.730.83 million, up from Ps.513.23 million in 4Q14. Earnings per common share for the quarter were Ps.2.4361 and earnings per ADS (EPADS) were US$1.4123 (one ADS represents ten series B common shares). This compares with earnings per share of Ps.1.7108 and EPADS of US$0.9918 for the same period last year. The higher net income principally reflects the 9.73% increase in passenger traffic. During 4Q15, ASUR reported a Ps.13.43 million loss corresponding to its participation in Aerostar, the joint venture to operate SJU airport, compared to a loss of Ps.17.30 million in the same period in 2014.

 Table VII: Summary of Consolidated Results for 4Q15

4Q14

4Q15

% Change

Total Revenues

1,685,458

2,905,157

72.37

Aeronautical Services

837,157

956,472

14.25

Non-Aeronautical Services

502,787

636,158

26.53

Commercial Revenues

443,586

566,059

27.61

Total Revenues Excluding Construction Revenues

1,339,944

1,592,630

18.86

Construction Revenues

345,514

1,312,527

279.88

Operating Profit

795,980

1,006,951

26.50

Operating Margin

47.23%

34.66%

-1,257 bps

Adjusted Operating Margin1

59.40%

63.23%

+383 bps

EBITDA

910,488

1,126,191

23.69

EBITDA Margin

54.02%

38.77%

-1,525 bps

Adjusted EBITDA Margin2

67.95%

70.71%

+276 bps

Net Income

513,231

730,833

42.40

Earnings per Share

1.7108

2.4361

42.40

Earnings per ADS in US$

0.9918

1.4123

42.40

Note:  U.S. dollar figures are calculated at the exchange rate of US$1 = Ps.17.2487.

  1. Adjusted Operating Margin, excludes the effect of IFRIC12 with respect to the construction or improvements to concessioned assets, and is equal to operating profit divided by total revenues less construction services revenues.
  2. Adjusted EBITDA Margin, excludes the effect of IFRIC12 with respect to the construction or improvements to concessioned assets, and is calculated by dividing EBITDA by total revenues less construction services revenues.

Consolidated Results for FY15

Total revenues for FY15 increased year-over-year by 52.99% to Ps.8,994.60 million, mainly due to the following increases:

  • 18.14% in revenues from aeronautical services as a result of the 12.88% increase in passenger traffic during the period;
  • 25.87% in revenues from non-aeronautical services, mainly due to the 26.79% increase in commercial revenues detailed below; and
  • 345.12% in construction services due to higher capital investments made during the period.

Commercial revenues for FY15 grew by 26.79% year-over-year, principally due to revenue increases in the following areas: 

  • 30.65% in retail operations;
  • 21.10% in duty-free stores;
  • 22.46% in food and beverage operations;
  • 34.60% in car rentals;
  • 43.98% in other income;
  • 20.54% in advertising;
  • 18.34% in parking lot fees;
  • 28.75% in banking and currency exchange services;
  • 22.11% in ground transportation services; and
  • 30.63% in teleservices.

Table VIII: Commercial Revenues per Passenger for FY15

FY14

FY15

% Change

Total Passengers *('000)

23,340

26,344

12.87

Total Commercial Revenues

1,743,486

2,210,549

26.79

Commercial revenues from direct operations (1)

411,681

424,682

3.16

Commercial revenues excluding direct operations

1,331,805

1,785,867

34.09

 

4Q14

4Q15

% Change

Total Commercial Revenue per Passenger

74.70

83.91

12.34

Commercial revenue from direct operations per passenger (1)

17.64

16.12

(8.62)

Commercial revenue per passenger (excluding direct operations)

57.06

67.79

18.80

 

*     For purposes of this table, approximately 182,700 and 203,200 transit and general aviation passengers are included for FY14 and FY15, respectively.

(1)    Revenues from direct commercial operations represent ASUR's operation of convenience stores in airports, as well as the direct sale of advertising space until April 30, 2015, when advertising sales were concessioned to a third party.

Total operating costs and expenses for FY15 rose by 81.06% year-on-year, primarily due to the following increases:

  • 345.12% in construction costs, resulting from higher committed improvements made to concessioned assets during the period;
  • 25.60% in technical assistance costs, reflecting the corresponding increase in EBITDA during the period;
  • 20.37% in concession fees paid to the Mexican government, mainly due to an increase in regulated revenues (a factor in the calculation of the fee);
  • 15.72% in administrative expenses, principally reflecting lower professional fees in FY14 resulting from the reversal of the expense provision in connection with the Master Development Plan. In addition, higher marketing expenses in connection with participation at international fairs, office leases and professional fees also contributed to the increase;
  • 3.24% in depreciation and amortization, resulting mainly from higher capitalized investments; and
  • 5.82% in cost of services, principally due to higher software license and professional fees, as well as security and maintenance expenses. The increase in cost of sales derived from the convenience stores directly operated by ASUR also contributed to this increase.

Excluding construction costs, operating costs and expenses rose 9.47% to Ps.2,341.00 million.

Table IX: Operating Costs and Expenses for FY15

FY14

FY15

% Change

Cost of Services

1,081,376

1,144,327

5.82

Administrative

170,231

196,990

15.72

Technical Assistance

190,419

239,175

25.60

Concession Fees

242,165

291,505

20.37

Depreciation and Amortization

454,265

468,996

3.24

Operating Cost and Expenses Excluding Construction Costs

2,138,456

2,340,993

9.47

Construction Costs

579,774

2,580,707

345.12

TOTAL

2,718,230

4,921,700

81.06

Operating Margin was 45.28% in FY15 compared with 53.77% in FY14.  This was mainly the result of the 81.06% increase in operating expenses which more than offset the 52.99% increase in revenues for the period.

Adjusted Operating Margin, which excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets, and is calculated as operating profit divided by total revenues less construction services revenues, was 63.50% in FY15 compared with 59.65% in FY14.

Comprehensive Financing Gain (Loss) for FY15 was a Ps.109.96 million loss, compared to an Ps.114.98 million loss in FY14, principally due to a Ps.168.66 million foreign exchange loss in FY15 resulting from the impact of the 17.01% depreciation of the Mexican peso against the U.S. dollar on ASUR's foreign currency net liability position. This compares with a Ps.154.53 million foreign exchange loss in FY14 resulting from the impact of the 12.66% depreciation of the Mexican peso against the U.S. dollar on ASUR's foreign currency net liability position.

Furthermore, ASUR reported a Ps.272.76 million gain in stockholders' equity resulting from the translation effect of Aerostar's financial statements (which are denominated in U.S. dollars), relating to the valuation of the capital stock derived from the depreciation of the peso against the U.S. dollar.

Interest income increased by Ps.34.35 million year-on-year as a result of the higher cash balance during the period. Interest expense rose by Ps.15.20 million, reflecting loans granted by BBVA Bancomer and Merrill Lynch.

Table X: Comprehensive Financing Gain (Loss)

FY14

FY15

Change

% Change

Interest income

121,369

155,718

34,349

28.30

Interest expenses

(81,814)

(97,017)

(15,203)

18.58

Foreign exchange gain (loss), net

(154,532)

(168,664)

(14,132)

9.15

Total

(114,977)

(109,963)

5,014

(4.36)

Income (Loss) from Equity Investment in Joint Venture.

During FY15, our equity from the income of the Aerostar joint venture was Ps.50.92 million. In addition, ASUR recorded a Ps.272.76 million gain in stockholders' equity resulting from the translation effect of Aerostar's financial statements (which are denominated in U.S. dollars), relating to the valuation of the capital stock derived from the depreciation of the peso against the U.S. dollar. In FY14, ASUR reported a net gain of Ps.36.45 million from its equity in the income of Aerostar and a Ps.183.62 million gain in stockholders' equity relating to the valuation of the capital stock derived from the depreciation of the peso against the U.S. dollar.

Total passenger traffic at SJU increased 1.02% in FY15 to 8,808,028 passengers from 8,600,411 during FY14.

Net income for FY15 increased by 27.59% to Ps.2,913.74 million. Earnings per common share for the twelve-month period were Ps.9.7125 and earnings per ADS (EPADS) were US$5.6308 (one ADS represents ten series B common shares).  This compares with Ps.7.6124 per share and EPADS of US$4.4133 for FY14.

Net income for the year benefitted from the 12.88% increase in passenger traffic and reflects the Ps.50.92 million of equity in income corresponding to ASUR's participation in Aerostar, the joint venture to operate SJU airport, compared to equity in income of Ps.36.45 million in FY14.

Table XI: Summary of Consolidated Results for FY15

FY14

FY15

Change

Total Revenues

5,879,163

8,994,597

52.99

Aeronautical Services

3,319,672

3,921,949

18.14

Non-Aeronautical Services

1,979,717

2,491,941

25.87

      Commercial Revenues

1,743,486

2,210,549

26.79

Total Revenues Excluding Construction Revenues

5,299,389

6,413,890

21.03

Construction Revenues

579,774

2,580,707

345.12

Operating Profit

3,160,933

4,072,897

28.85

Operating Margin

53.77%

45.28%

   -849 bps

Adjusted Operating Margin1

59.65%

63.50%

     +385 bps

EBITDA

3,615,198

4,541,893

25.63

EBITDA Margin %

61.49%

50.50%

    -1,099 bps

Adjusted EBITDA Margin2

68.22%

70.81%

+259 bps

Net Income

2,283,723

2,913,735

27.59

Earnings per Share

7.6124

9.7125

27.59

Earnings per ADS in US$

4.4133

5.6308

27.59

   Note:    U.S. dollar figures are calculated at the exchange rate of US$1 = Ps.17.2487.

  1. Adjusted Operating Margin, excludes the effect of IFRIC12 with respect to the construction or improvements to concessioned assets, and is equal to operating profit divided by total revenues less construction services revenues.
  2. Adjusted EBITDA Margin, excludes the effect of IFRIC12 with respect to the construction or improvements to concessioned assets, and is calculated by dividing EBITDA by total revenues less construction services revenues.

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 FY15 were Ps.4,014.73 million, resulting in an annual average tariff per workload unit of Ps.150.26. ASUR's regulated revenues accounted for approximately 44.63% of total income for the period.

Compliance with maximum rate regulations is reviewed by the Mexican Ministry of Communications and Transportation at the close of each year.

Balance Sheet

On December 31, 2015, airport concessions represented 72.81% of the Company's total assets, with current assets representing 11.43% and other assets representing 15.76%.

Cash and cash equivalents on December 31, 2015, were Ps.2,084.16 million, a decrease of 27.01% from the Ps.2,855.36 million recorded on December 31, 2014.

Shareholders' equity at the close of 4Q15 was Ps.20,408.05 million and total liabilities were Ps.5,717.84 million, representing 78.11% and 21.89% of total assets, respectively. Deferred liabilities represented 26.81% of ASUR's total liabilities.

Total bank debt at December 31, 2015 was Ps.3,718.02 million, including Ps.9.55 million in accrued interest and commissions.

ASUR's Cancun airport subsidiary has total bank loans of U.S.$215.0 million, comprised of two separate loans of US$107.5 million from each of BBVA Bancomer and Bank of America. The loans mature in 2022 and will amortize semi-annually from 2018 through 2022, pursuant to an agreed schedule.  The loans are denominated in U.S. dollars and charge interest at a rate equal to LIBOR plus 1.85%.  The loans are guaranteed by Grupo Aeroportuario del Sureste, S.A.B. de C.V. and were originally used to finance ASUR's capital contribution and subordinated shareholder loan to Aerostar.

Capital Expenditures

During 4Q15, ASUR made investments of Ps.1,704.90 million as part of ASUR's ongoing plan to modernize its airports pursuant to its master development plans. Capital expenditures for FY15 totaled Ps.2,906.57 million.

Solar Energy Project

On December 16, 2015, ASUR announced it reached an agreement with SunPower Corp. (SunPower) for 36 megawatts of solar energy to serve its operations in Mexico. ASUR will buy solar energy to be generated by the solar power plant under a long-term purchase agreement with SunPower.

Opening of Terminal 3 Expansion

On December 18, 2015, ASUR inaugurated the expansion of Terminal 3 at Cancun International Airport, as contemplated in its master development plans.

4Q15 Earnings Conference Call

Day:

Tuesday, February 23, 2016

Time:

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

Dial-in number:

1-877-741-4248 (US & Canada) and 1-719-325-4760 (International & Mexico) 

Access Code:

381861

Please dial in 10 minutes before the scheduled start time. 

Replay:

Tuesday, February 23, 2016 at 1:00 PM US ET, ending at midnight US ET on Tuesday, March 1, 2016. Dial-in number: 1-877-870-5176 (US & Canada); 1-858-384-5517 (International & Mexico). Access Code: 381861.

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 and 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 Cancún, Mérida, Cozumel, Villahermosa, Oaxaca, Veracruz, Huatulco, Tapachula and Minatitlán in the southeast of México, 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.

 

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

Operating Results per Airport

Thousands of Mexican pesos

Item

4Q  2014

4Q 2014 Per Workload Unit

4Q 2015

4Q 2015 Per Workload Unit

FY 2014

FY 2014 Per Workload Unit

FY 2015

FY 2015 Per Workload Unit

Cancún (1)

Aeronautical Revenues

598,970

139.5

685,532

145.2

2,456,659

138.7

2,877,885

144.8

Non-Aeronautical Revenues

443,661

103.3

574,315

121.7

1,761,194

99.5

2,250,665

113.3

Construction Services Revenues

137,443

32.0

961,598

203.7

236,451

13.4

1,846,138

92.9

Total Revenues

1,180,074

274.8

2,221,445

470.5

4,454,304

251.5

6,974,688

351.0

Operating Profit

547,178

127.4

717,031

151.9

2,395,935

135.3

3,091,198

155.6

EBITDA

617,799

143.9

789,701

167.3

2,677,272

151.2

3,377,858

170.0

Mérida

Aeronautical Revenues

61,552

140.2

75,065

148.6

225,430

138.8

272,065

146.2

Non-Aeronautical Revenues

17,480

39.8

19,209

38.0

62,777

38.7

71,872

38.6

Construction Services Revenues

17,127

39.0

107,884

213.6

26,295

16.2

204,450

109.9

Other (2)

6

0.0

11

0.0

28

0.0

27

0.0

Total Revenues

96,165

219.1

202,169

400.3

314,530

193.7

548,414

294.7

Operating Profit

32,698

74.5

41,572

82.3

102,192

62.9

139,649

75.0

EBITDA

41,570

94.7

50,957

100.9

137,583

84.7

175,936

94.5

Villahermosa

Aeronautical Revenues

41,091

127.2

45,752

133.8

145,732

125.6

174,103

132.3

Non-Aeronautical Revenues

13,817

42.8

15,645

45.7

50,429

43.5

58,278

44.3

Construction Services Revenues

18,615

57.6

25,500

74.6

30,200

26.0

61,650

46.8

Other (2)

19

0.1

14

0.0

77

0.1

66

0.1

Total Revenues

73,542

227.7

86,911

254.1

226,438

195.2

294,097

223.5

Operating Profit

24,705

76.5

26,132

76.4

81,432

70.2

104,466

79.4

EBITDA

31,091

96.3

32,775

95.8

105,454

90.9

130,565

99.2

Other Airports (3)

Aeronautical Revenues

135,544

159.5

150,123

163.9

491,851

153.5

597,896

162.6

Non-Aeronautical Revenues

27,829

32.7

26,989

29.5

105,317

32.9

111,126

30.2

Construction Services Revenues

172,329

202.7

217,545

237.5

286,828

89.5

468,469

127.4

Other (2)

29,554

34.8

90,256

98.5

81,753

25.5

103,380

28.1

Total Revenues

365,256

429.7

484,913

529.4

965,749

301.4

1,280,871

348.3

Operating Profit

88,970

104.7

148,111

161.7

257,460

80.4

356,656

97.0

EBITDA

117,036

137.7

178,098

194.4

368,280

114.9

474,357

129.0

Holding & Service companies (4)

Construction Services Revenues

0

 n/a

0

 n/a

0

 n/a

0

 n/a

Other (2)

308,856

 n/a

372,729

 n/a

1,127,161

 n/a

1,291,669

 n/a

Total Revenues

308,856

 n/a

372,729

 n/a

1,127,161

 n/a

1,291,669

 n/a

Operating Profit

102,429

 n/a

74,105

 n/a

323,914

 n/a

380,928

 n/a

EBITDA

102,992

 n/a

74,660

 n/a

326,609

 n/a

383,177

 n/a

Consolidation Adjustment

Consolidation Adjustment

(338,435)

 n/a

(463,010)

 n/a

(1,209,019)

 n/a

(1,395,142)

 n/a

Group

Aeronautical Revenues

837,157

141.7

956,472

147.5

3,319,672

140.1

3,921,949

146.7

Non-Aeronautical Revenues

502,787

85.1

636,158

98.1

1,979,717

83.5

2,491,941

93.2

Construction Services Revenues

345,514

58.5

1,312,527

202.4

579,774

24.5

2,580,707

96.6

Total Revenues

1,685,458

285.4

2,905,157

448.1

5,879,163

248.1

8,994,597

336.5

Operating Profit

795,980

134.8

1,006,951

155.3

3,160,933

133.4

4,072,897

152.4

EBITDA

910,488

154.2

1,126,191

173.7

3,615,198

152.6

4,541,893

169.9

(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 Balance Sheet as of  December 31, 2015 and 2014

Thousands of Mexican pesos

I t e m

December 2015

December 2014

Variation

%

A s s e t s

Current Assets

Cash and Cash Equivalents

2,084,160

2,855,362

(771,202)

(27.01)

Accounts Receivable, net

419,615

449,808

(30,193)

(6.71)

Recoverable Taxes and Other Current Assets

481,754

598,746

(116,992)

(19.54)

Total Current Assets

2,985,529

3,903,916

(918,387)

(23.52)

Non Current Assets

Machinery, Furniture and Equipment, net

321,913

322,613

(700)

(0.22)

Airports Concessions, net

19,022,311

16,509,356

2,512,955

15.22

Accounts Receivable from Joint Venture

1,851,423

1,567,608

283,815

18.10

Investment in Joint Venture Accounted by the Equity Method

1,944,708

1,621,028

323,680

19.97

Total  Assets

26,125,884

23,924,521

2,201,363

9.20

Liabilities and Stockholders' Equity

Current Liabilities

Trade Accounts Payable

21,068

13,060

8,008

61.32

Bank Loans

39,893

29,945

9,948

33.22

Accrued Expenses and Others Payables

445,736

358,638

87,098

24.29

Total Current Liabilities

506,697

401,643

105,054

26.16

Long Term Liabilities

Bank Loans

3,678,128

3,157,357

520,771

16.49

Deferred Income Taxes

1,523,722

1,606,245

(82,523)

(5.14)

Employee Benefits

9,288

8,180

1,108

13.55

Total Long Term Liabilities

5,211,138

4,771,782

439,356

9.21

Total Liabilities

5,717,835

5,173,425

544,410

10.52

Stockholders' Equity

Capital Stock

7,767,276

7,767,276

0

0.00

Legal Reserve

747,077

618,418

128,659

20.80

Net Income for the Period

2,913,735

2,283,723

630,012

27.59

Cumulative Effect of Conversion of Foreign Currency

492,786

220,029

272,757

123.96

Retained Earnings

8,487,175

7,861,650

625,525

7.96

Total Stockholders' Equity

20,408,049

18,751,096

1,656,953

8.84

Total Liabilities and Stockholders' Equity

26,125,884

23,924,521

2,201,363

9.20

 

 

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

Consolidated Statement of Income from January 1 to December 31,  2015 and 2014

Thousands of Mexican pesos

I t e m

 FY

 FY

%

 4Q

 4Q

%

2014

2015

Change

2014

2015

Change

Revenues

Aeronautical Services

3,319,672

3,921,949

18.14

837,157

956,472

14.25

Non-Aeronautical Services

1,979,717

2,491,941

25.87

502,787

636,158

26.53

Construction Services

579,774

2,580,707

345.12

345,514

1,312,527

279.88

Total Revenues

5,879,163

8,994,597

52.99

1,685,458

2,905,157

72.37

Operating Expenses

Cost of Services

1,081,376

1,144,327

5.82

278,730

283,379

1.67

Cost of Construction

579,774

2,580,707

345.12

345,514

1,312,527

279.88

General and Administrative Expenses

170,231

196,990

15.72

41,360

52,161

26.11

Technical Assistance

190,419

239,175

25.60

47,963

59,282

23.60

Concession Fee

242,165

291,505

20.37

61,403

71,617

16.63

Depreciation and Amortization

454,265

468,996

3.24

114,508

119,240

4.13

Total Operating Expenses

2,718,230

4,921,700

81.06

889,478

1,898,206

113.41

Operating Income

3,160,933

4,072,897

28.85

795,980

1,006,951

26.50

Comprehensive Financing Cost

(114,977)

(109,963)

(4.36)

(106,752)

(557)

(99.48)

Income from results of Joint Venture

Accounted by the Equity Method

36,448

50,923

39.71

(17,299)

(13,431)

(22.36)

Income Before Income Taxes

3,082,404

4,013,857

30.22

671,929

992,963

47.78

Provision for IETU

0

0

0.00

1,123

0

(100.00)

Provision for Income Tax

844,077

1,198,273

41.96

187,991

316,178

68.19

Provision for Asset Tax

6,753

5,259

(22.12)

511

901

76.32

Deferred Income Taxes

(52,149)

(103,410)

98.30

(30,927)

(54,949)

77.67

Net Income for the Year

2,283,723

2,913,735

27.59

513,231

730,833

42.40

Earning per Share

7.6124

9.7125

27.59

1.7108

2.4361

42.40

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

4.4133

5.6308

27.59

0.9918

1.4123

42.40

Exchange Rate per Dollar Ps. 17.2487

 

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

 Consolidated Statement of Cash flow as of December 31,  2015 and 2014

Thousands of Mexican pesos

Related

 FY

 FY

%

 4Q

 4Q

%

2014

2015

Change

2014

2015

Change

Operating Activities

Income Before Income Taxes

3,082,404

4,013,857

30

671,929

992,963

48

Items Related with Investing Activities:

Depreciation and Amortization

454,265

468,996

3

114,508

119,240

4

Income from Results of Joint Venture Accounted by the Equity Method

(36,448)

(50,923)

40

17,299

13,431

(22)

Interest Income

(121,369)

(155,718)

28

(40,612)

(44,624)

10

Foreign Exchange Gain (loss), net

187,291

283,383

51

187,291

38,812

(79)

Sub-Total

3,566,143

4,559,595

28

950,415

1,119,822

18

Increase in Trade Receivables

17,603

30,193

72

(243,749)

(343,695)

41

Decrease in Recoverable Taxes and other Current Assets

371,839

269,697

(27)

346,258

(180,063)

(152)

Other Deferred Assets

0

0

0

0

0

Income Tax Paid

(1,042,430)

(1,366,174)

31

(374,745)

(272,183)

(27)

Income Tax on dividends

(287,149)

0

(100)

0

0

   Trade Accounts Payable

21,403

16,336

(24)

(126,867)

(74,033)

(42)

   Accrued Expenses and Others Payables

0

0

0

0

0

0

    Long Term Liabilities

0

0

0

0

0

0

Net Cash Flow Provided by Operating Activities

2,647,409

3,509,647

33

551,312

249,848

(55)

Investing Activities

   Investments in Machinery, Furniture and Equipment, net

(1,156,314)

(2,906,567)

151

(835,881)

(1,704,895)

104

Interest Income

121,369

155,718

28

40,612

44,624

10

Net Cash Flow Provided by Investing Activities

(1,034,945)

(2,750,849)

166

(795,269)

(1,660,271)

109

Excess Cash to Use in Financing Activities:

1,612,464

758,798

(53)

(243,957)

(1,410,423)

478

Bank Loans

(16,665)

0

(100)

0

0

0

Dividends Paid

0

(1,530,000)

0

0

0

0

Net Cash Flow Provided by Financing Activities

(16,665)

(1,530,000)

9,081

0

0

0

Net Increase in Cash and Cash Equivalents

1,595,799

(771,202)

(148)

(243,957)

(1,410,423)

478

Cash and Cash Equivalents at Beginning of Period

1,259,563

2,855,362

127

3,099,319

3,494,583

13

Cash and Cash Equivalents at the End of Period

2,855,362

2,084,160

(27)

2,855,362

2,084,160

(27)

 

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