OMA Announces Third Quarter 2018 Operating and Financial Results

Mexican airport operator Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., known as OMA (NASDAQ: OMAB; BMV: OMA), today reported its unaudited, consolidated financial and operating results for the third quarter of 2018.

Highlights

Adjusted EBITDA grew 23.8%, with a margin of 71.4%
Aeronautical and Non-Aeronautical revenues increased 15.8%
Passenger traffic increased 10.5%
38 commercial initiatives were implemented, including car rental, retail stores, restaurants, among others
Cost of services and G&A expenses decreased 6.8%
Net income rose 25.1%

(Thousand Passengers and Million Pesos)	3Q17		3Q18		% Var		9M17		9M18		% Var
Passenger Traffic	5,201		5,750		10.5		14,652		16,035		9.4
Aeronautical Revenues	1,163		1,355		16.5		3,257		3,829		17.6
Non-Aeronautical Revenues	368		418		13.5		1,066		1,195		12.1
Aeronautical + Non-Aeronautical Revenues	1,532		1,774		15.8		4,323		5,023		16.2
Construction Revenues	352		193		(45.3	)	919		863		(6.1	)
Total Revenues	1,884		1,967		4.4		5,242		5,886		12.3
Adjusted EBITDA	1,023		1,266		23.8		2,830		3,516		24.2
Adjusted EBITDA Margin (%)	66.8	%	71.4	%			65.5	%	70.0	%
Income from Operations	869		1,091		25.5		2,409		3,074		27.6
Operating Margin (%)	46.1	%	55.5	%			46.0	%	52.2	%
Consolidated Net Income	580		725		25.1		1,513		2,045		35.2
Net Income of Controlling Interest	579		723		24.9		1,507		2,036		35.1
EPS (Ps.)	1.47		1.84		25.0		3.83		5.17		35.2
EPADS (US$)	0.66		0.78		18.6		1.71		2.20		28.4
MDP and Strategic Investments	450		247		(45.1	)	1,094		1,106		1.1

3Q18 Results Summary

Adjusted EBITDA grew 23.8%, with an Adjusted EBITDA margin of 71.4%.

Aeronautical and non-aeronautical revenues rose 15.8%, while passenger traffic increased 10.5%.

Aeronautical revenues rose 16.5%, mainly as a result of higher traffic volumes.

Non-aeronautical revenues grew 13.5%, led by growth in the parking and car rental line items.

Cost of airport services and G&A expense decreased 6.8%. The reduction reflected primarily reductions in payroll, contracted services, minor maintenance and materials and supplies as a result of cost control initiatives. Total operating costs and expenses decreased 13.7%.

Capital investments and major maintenance included in the Master Development Plans (MDPs) plus strategic investments reached Ps. 247 million. Investments included the completion of the expansion of the regional flight boarding area in Terminal B in the Monterrey airport, the construction of a new passenger terminal in the Reynosa airport, the expansion and remodeling of the Chihuahua and San Luis Potosí passenger terminals; as well as other operational infrastructure works. All investments were funded out of cash generated from operations.

The ratio of net debt to EBITDA was 0.51 as of September 30, 2018.

OMA’s complete earnings report is available at http://ir.oma.aero

OMA will hold its 3Q18 earnings conference call on October 25, 2018 at 11 am Eastern time, 10 am Mexico City time.

Call 1-877-407-9208 toll-free from the U.S. or 1-201-493-6784 from outside the U.S. The conference ID is 13684397. The conference call will also be available by webcast at http://ir.oma.aero/events.cfm

This press release may contain forward-looking information and statements. Forward-looking statements are statements that are not historical facts. These statements are only predictions based on our current information and expectations and projections about future events. Forward-looking statements may be identified by the words “believe,” “expect,” “anticipate,” “target,” “estimate,” or similar expressions. While OMA's management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and are generally beyond the control of OMA, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to, those discussed in our most recent annual report filed on Form 20-F under the caption “Risk Factors.” OMA undertakes no obligation to update publicly its forward-looking statements, whether as a result of new information, future events, or otherwise.

About OMA

Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., known as OMA, operates 13 international airports in nine states of central and northern Mexico. OMA’s airports serve Monterrey, Mexico’s third largest metropolitan area, the tourist destinations of Acapulco, Mazatlán, and Zihuatanejo, and nine other regional centers and border cities. OMA also operates the NH Collection Hotel inside Terminal 2 of the Mexico City airport and the Hilton Garden Inn at the Monterrey airport. OMA employs over 1,000 persons in order to offer passengers and clients airport and commercial services in facilities that comply with all applicable international safety, security, and ISO 9001:2008 environmental standards. OMA is listed on the Mexican Stock Exchange (OMA) and on the NASDAQ Global Select Market (OMAB). For more information, visit: