ASUR 1Q12 Passenger Traffic Up 10.38% YOY

MEXICO CITY, April 24, 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 month period ended March 31, 2012.

1Q12 Highlights(1):

• EBITDA(2) increased by 22.42% to Ps.828.46 million
• Total passenger traffic was up 10.38%
• Total revenues rose by 20.99% due to increases of 16.42% in aeronautical revenues, 25.08% in non-aeronautical revenues, and 46.12% in construction services revenues
• Commercial revenues per passenger increased by 14.66% to Ps.74.63
• Operating profit increased by 25.22%
• EBITDA margin increased to 64.42% from 63.67% in 1Q11

Passenger Traffic

For 1Q12, total passenger traffic increased year-over-year by 10.38%. Domestic passenger traffic increased by 19.79% while international passenger traffic rose by 5.83%. Domestic passenger traffic growth was driven by increases across all airports as detailed in Table I below. Growth in international passenger traffic resulted mainly from an increase of 6.23% at the Cancun airport.

Table I: Domestic Passengers (in thousands)

Note:   Passenger figures exclude transit and general aviation passengers.

II: International Passengers (in thousands)

Note:   Passenger figures exclude transit and general aviation passengers.

Table III: Total Passengers (in thousands)

Note:   Passenger figures exclude transit and general aviation passengers.

Consolidated Results for 1Q12

Total revenues for 1Q12 increased year-over-year by 20.99% to Ps.1,285.98  million. This was mainly due to increases of:

• 16.42% in revenues from aeronautical services, principally as a result of the 10.38% rise in passenger traffic;
• 25.08% in revenues from non-aeronautical services, reflecting the 26.48% increase in commercial revenues detailed below; and
• 46.12% 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, retailoperations, banking and currency exchangeservices, advertising, teleservices, non-permanent ground transportation, food and beverage, and parking lot fees.

Commercial revenues increased by 26.48% year-over-year during the quarter, principally due to higher passenger traffic. There were increases in revenues in the following activities:

• 32.49% in advertising;
• 31.54% in ground transportation;
• 31.30% in duty-free stores;
• 30.86% in retail operations;
• 23.18% in food and beverage;
• 21.52% in other revenues;
• 19.02% in banking and currency exchange services;
• 11.52% in car rental revenues; and
• 3.48% in parking lot fees.

These increases were partially offset by a decrease of 2.11% in teleservices revenues.

Construction revenues and expenses. ASUR is required to include in its income statement an income line reflecting the income from construction or improvements to concessioned assets made during the period. During 1Q12, ASUR recognized Ps.90.52 million in revenues from "Construction Services" because of improvements to its concessioned assets, a 46.12% year-over-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 Services revenues and Construction Costs have been included in ASUR's income statement, the increase in Construction Services revenues in 1Q12 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 1Q12 increased 15.85% year-over-year. This was primarily due to the following increases:

• 46.42% in construction costs, due to greater improvements made to the concessioned assets during the period;
• 11.49% in costs of services, principally reflecting higher energy costs, higher costs resulting from the increase in the number of convenience stores directly operated by ASUR and fees paid to third parties in connection with ASUR's participation in international bidding processes;
• 8.21% in administrative expenses principally due to travel costs in connection with international bidding processes, as well as personnel costs;
• 22.38% in the technical assistance fee paid to ITA, reflecting the increase in EBITDA for the quarter (a factor in the calculation of the fee);
• 17.83% 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
• 5.09% in depreciation and amortization, resulting mainly from capitalized investments.

Operating margin for the quarter increased to 56.73% from 54.81% in 1Q11. This was mainly due to the 20.99% increase in revenues which more than offset the 15.85% increase in expenses during the period.

Comprehensive Financing Cost for 1Q12 increased year-over-year to Ps.15.13 million from a de minimis amount in 1Q11, principally due to a higher foreign exchange loss. During 1Q12, ASUR reported a foreign exchange rate loss of Ps.18.21 million, net interest income of Ps.2.68 million, and a Ps.0.40 million mark-to-market gain in its interest rate swap. During 1Q11, ASUR reported net interest income of Ps.4.47 million, a Ps.0.90 million mark-to-market gain on the Company's interest rate swap and a Ps.5.40 million foreign exchange rate loss.

Income Taxes. Following the changes in Mexican tax law that took effect 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 under Mexican Financial Reporting Standards as applied by Mexican tax laws.

Income taxes for 1Q12 increased by 6.80%, or Ps.11.23 million year-over-year, principally due to the following factors:

• Provisional IETU payments of Ps.4.25 million by some of ASUR's subsidiaries;
• A Ps.31.26 million increase in the provision for income taxes reflecting a higher taxable base as revenues rose 20.99% in the period while expenses only increased by 15.85%;
• An Ps.18.55 million decline in deferred income taxes resulting from the recognition of inflationary effects;
• A Ps.1.74 million increase in deferred IETU because of the expiry of tax credits; and
• A Ps.0.78 million increase in the asset tax for amounts that cannot be credited against other taxes.

Net income for 1Q12 increased 28.89% to Ps.537.97 million from Ps.417.38 million in 1Q11. Earnings per common share for the quarter were Ps.1.7932, or earnings per ADS (EPADS) of US$1.3999 (one ADS represents ten series B common shares). This compares with earnings per share of Ps.1.3913, or EPADS of US$1.0861, for the same period last year.

Table IV: Summary of Consolidated Results for 1Q12

Note:  U.S. dollar figures are calculated at the exchange rate of US$1 = Ps.12.8093.

Table V: Commercial Revenues per Passenger for 1Q12

Note: For purposes of this table, approximately 55,000 and 57,000 transit and general aviation passengers are included for 1Q11 and 1Q12, respectively.

(1)  Revenues from direct commercial operations in 1Q12 represent ASUR's operation of convenience stores in airports and the direct sale of advertising space.

Table VI: Operating Costs and Expenses for 1Q12

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 1Q12 were Ps.858.87 million, resulting in an annual average tariff per workload unit of Ps.163.34. ASUR's regulated revenues accounted for approximately 66.79% 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 March 31, 2012, Airport Concessions represented 80.03% of the Company's total assets, with current assets representing 18.33% and other assets representing 1.64%.

Cash and cash equivalents on March 31, 2012 were Ps.2,069.24 million, a 35.27% increase from the Ps.1,529.67 million in cash and cash equivalents recorded on December 31, 2011.

Shareholders' equity at the close of 1Q12 was Ps.16,014.30 million and total liabilities were Ps.3,188.55 million, representing 82.57% and 16.60% of total assets, respectively. Deferred liabilities represented 62.94% of the Company's total liabilities. 

Total bank debt at March 31, 2012 was Ps.604.0 million, including Ps.0.9 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 agreement 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 interest payments.

During the quarter, ASUR made principal payments of Ps.92.5 million in connection with the Ps.350 million and Ps.570 million three-year credit agreements.

In August 2010 ASUR purchased a hedge against the risk of a significant increase in TIIE. The Company is hedged for 17% of the interest rate exposure under its Ps.350 and Ps.570 million credit agreements. The interest rate was fixed for three years at 6.37%, 6.33% and 6.21% per annum. The interest rate hedge during the quarter resulted in a Ps.0.4 million gain.

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 1Q12, ASUR made investments of Ps.152.35 million as part of ASUR's ongoing plan to modernize its airports pursuant to its master development plans.

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 accomulated changes in net shareholders' equity as of January 1, 2011 are included in the table below:

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

The following table presents the principal effects of IFRS on the Income Statement for the quarters ended March 31, 2011 and 2012.

The adoption of IFRS has had the most significant impact on the following line items in our balance sheet:

ASUR has determined that it will not eliminate the effects of inflation on its concessioned assets in accordance with IFRS 1. ASUR's determination is based on its decision to apply the transition rules applicable to IFRIC 12 as part of its initial adoption of IFRS 1.  Pursuant to these transition rules, ASUR is not required to apply rule IFRIC 12 retrospectively if it determines that it would be  "impractical" to reconstruct the balance of fully depreciated assets. As a result, the Company has recorded as its starting asset balance the amounts recorded as of the December 31, 2011 balance sheet prepared under Mexican Financial Reporting Standards (MFRS), which contain the inflationary effect.

Analyst Coverage

Actinver Casa de Bolsa, BBVA Bancomer, Bofa Merril Lynch, Citi Investment Research, Credit Suisse, Grupo Bursatil Mexicano, HSBC, INVEX, JP Morgan, Morgan Stanley, Mornigstar, Santander Investment, Scotia Capital, UBS Casa de Bolsa, Vector, Itau BBA.

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 the company management. Although ASUR may refer to or distribute such statements, this does not imply that the company 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.
	Consolidated Statement of Income from January 1 to March 31,  2012 and 2011
	Thousands of Mexican pesos
		I t e m			3 Months		3 Months		%		1Q		1Q		%
					2011		2012		Change		2011		2012		Change
		Revenues
			Aeronautical Services		652,479		759,586		16.42		652,479		759,586		16.42
			Non-Aeronautical Services		348,471		435,871		25.08		348,471		435,871		25.08
			Construction Services		61,948		90,521		46.12		61,948		90,521		46.12
		Total Revenues			1,062,898		1,285,978		20.99		1,062,898		1,285,978		20.99
		Operating Expenses
			Cost of Services		203,205		226,556		11.49		203,205		226,556		11.49
			Cost of Construction		61,948		90,521		46.12		61,948		90,521		46.12
			General and Administrative Expenses		39,274		42,497		8.21		39,274		42,497		8.21
			Technical Assistance		35,642		43,618		22.38		35,642		43,618		22.38
			Concession Fee		46,103		54,325		17.83		46,103		54,325		17.83
			Depreciation and Amortization		94,171		98,965		5.09		94,171		98,965		5.09
		Total Operating Expenses			480,343		556,482		15.85		480,343		556,482		15.85
		Operating Income			582,555		729,496		25.22		582,555		729,496		25.22
		Comprehensive Financing Cost			(3)		(15,128)		504,166.67		(3)		(15,128)		504,166.67
		Non-Ordinary Item
			Non-Ordinary Item		-		-		-		-		-		-
		Income Before Income Taxes			582,552		714,368		22.63		582,552		714,368		22.63
			Provision for IETU		8,255		4,251		(48.50)		8,255		4,251		(48.50)
			Provision for Income Tax		170,211		201,466		18.36		170,211		201,466		18.36
			Provision for Asset Tax		2,084		2,866		37.52		2,084		2,866		37.52
			Deferred Income Taxes		(23,388)		(41,935)		79.30		(23,388)		(41,935)		79.30
			Deferred IETU		8,006		9,749		21.77		8,006		9,749		21.77
			Net Income for the Year		417,384		537,971		28.89		417,384		537,971		28.89
		Earnings per share			1.39		1.79		28.89		1.3913		1.7932		28.89
		Earnings per American Depositary Share (in U.S. Dollars)			1.09		1.40		28.89		1.0861		1.3999		28.89
		Exchange rate per dollar Ps. 12.8093

	Grupo Aeroportuario del Sureste, S.A.B. de C.V.
	Consolidated Balance Sheet as of  March 31, 2012 and 2011
	Thousands of Mexican pesos
		I t e m			March 31, 2012		December 31, 2011		January 31, 2011
		A s s e t s
		Current Assets
			Cash and Cash Equivalents		2,069,241		1,529,667		1,442,879
			Trade Receivables, net		463,493		462,102		389,960
			Recoverable Taxes and Other Current Assets		987,466		894,520		921,193
		Total Current Assets			3,520,200		2,886,289		2,754,032
		Fixed Assets
			Machinery, Furniture and Equipment, net		314,212		306,504		305,629
		Defferred Assets
			Airports Concessions, net		15,368,436		15,405,490		14,945,330
		Total  Assets			19,202,848		18,598,283		18,004,991
		Liabilities and Stockholders' Equity
		Current Liabilities
			Trade Accounts Payable		18,440		28,876		10,738
			Bank Loans		432,920		374,640		243,102
			Accrued Expenses and Others Payables		559,065		357,197		261,159
		Total Current Liabilities			1,010,425		760,713		514,999
		Long Term Liabilities
			Bank Loans		171,119		321,950		647,503
			Deferred Income Taxes		1,343,751		1,385,685		1,461,089
			Deferred Flat Rate Business Tax		658,434		648,685		591,836
			Labor Obligations		4,821		4,838		3,982
		Total Long Term Liabilities			2,178,125		2,361,158		2,704,410
		Total Liabilities			3,188,550		3,121,871		3,219,409
		Stockholders' Equity
			Capital Stock		7,767,276		7,767,276		7,767,276
			Legal Reserve		333,261		333,261		264,092
			Net Income for the Period		537,971		1,591,566		1,275,143
			IFRS Conversion Adjustment		5,044,257		5,044,341		5,045,078
			Retained Earnings		2,331,533		739,968		433,993
			Total Stockholders' Equity		16,014,298		15,476,412		14,785,582
			Total Liabilities and Stockholders' Equity		19,202,848		18,598,283		18,004,991