UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of February
2019
GRUPO AEROPORTUARIO DEL CENTRO NORTE, S.A.B.
DE C.V.
(CENTRAL NORTH AIRPORT GROUP)
_________________________________________________________________
(Translation of Registrant’s Name Into
English)
México
_________________________________________________________________
(Jurisdiction of incorporation or organization)
Torre Latitud, L501, Piso 5
Av. Lázaro Cárdenas 2225
Col. Valle Oriente, San Pedro Garza García
Nuevo León, México
_________________________________________________________________
(Address of principal executive offices)
(Indicate by check mark whether the registrant
files or will file annual reports under cover of Form 20-F or Form 40-F.)
(Indicate by check mark whether the registrant
by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule
12g3-2(b) under the Securities Exchange Act of 1934.)
(If “Yes” is marked, indicate below
the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .)
OMA Announces Fourth Quarter and
Full Year 2018
Operating and Financial Results
Monterrey, Mexico, February 11, 2019
—
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 fourth quarter and full year 2018.
Highlights full year 2018
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Adjusted EBITDA
grew 23.6%, with a margin
of 70.0%
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Aeronautical and Non-Aeronautical revenues
increased
16.6%
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Passenger traffic
increased 9.7%
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Capital investments and major maintenance
included
in the Master Development Plans (MDPs) plus
strategic investments
reached Ps. 1,449 million
in 2018.
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Highlights 4Q18
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Adjusted EBITDA
grew 21.9%, with a margin
of 69.9%
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Aeronautical and Non-Aeronautical revenues
increased
17.7%
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Passenger traffic
increased 10.4%
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4Q18 Results Summary
Adjusted EBITDA grew 21.9%, with an
Adjusted EBITDA margin of 69.9%.
Aeronautical and non-aeronautical revenues
rose 17.7%, while passenger traffic increased 10.4%.
Aeronautical revenues rose 20.3%, mainly
as a result of higher traffic volumes.
Non-aeronautical revenues grew 10.4%,
led by growth in the parking and VIP lounges line items.
Cost of airport services and G&A
expense increased 4.0%. The growth reflected primarily an increase in payroll expense and electricity tariffs.
Capital investments and major maintenance
included in the Master Development Plans (MDPs) plus strategic investments reached Ps. 342 million. Investments included the construction
process 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
0.34 as of December 31, 2018.
OMA
will hold its 4Q18 earnings conference call on February 12, 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 13686952. The conference call
will also be available by webcast at http://ir.oma.aero/events.cfm.
4Q18 Operating Results
Operations, Passengers,
and Cargo
17 routes were opened during the quarter,
including 12 domestic routes and 5 international routes (of which, 4 are seasonal), while 6 routes were cancelled. The number of
available seats offered increased 9.6% compared to 4Q17, as a result of more frequencies and/or larger aircraft deployed on OMA’s
principal routes including Monterrey – Mexico City, Monterrey – Guadalajara, Monterrey – Cancún, among
others.
Total passenger traffic
increased
10.4%. Of total traffic, 88.4% was domestic and 11.6% was international.
Domestic passenger traffic
increased
11.1%. Ten airports increased traffic. The airports with the largest increases were:
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Monterrey
, mainly on the Mexico City, Cancún, Guadalajara, and Tijuana routes.
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Culiacán
, on its Tijuana, Guadalajara and Mexico City routes.
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Ciudad Juárez
, on its Guadalajara, Ciudad de México and Bajío routes.
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Chihuahua
, on its Cancún and Mexico City routes.
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International passenger traffic
increased 5.7%. Ten airports recorded increases in international traffic, led by Monterrey, as a result of increased traffic on
its Detroit route.
Commercial Operations
OMA implemented 14 commercial initiatives
in the quarter. The commercial space occupancy rate in the passenger terminals was 99.2%.
Hotel Services
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The
NH Collection Terminal 2 Hotel
had an 84.6% occupancy rate, a decrease of 4.5 percentage
points. The average room rate was Ps. 2,369 per night.
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The
Hilton Garden Inn
had a 78.4% occupancy rate, an increase of 1.6 percentage points,
with an average room rate of Ps. 2,170.
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Freight Logistics Services
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OMA Carga
’s freight handled decreased 4.4% to 7,805 metric tons.
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Industrial Services
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OMA VYNMSA Aero Industrial Park:
Rental income from the six warehouses on lease reached
Ps. 8.4 million.
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Consolidated
Financial Results
Revenues
Aeronautical revenues
increased
20.3%, mainly as a result of higher traffic volumes and an increase in the number of flight operations.
Non-aeronautical revenues
increased
10.4%. Non-aeronautical revenues per passenger was
Ps. 77.9.
Commercial revenues
increased
12.9%. The line items with the largest increases were:
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Parking,
+20.1%, as a result of increased capacity in the Monterrey, Chihuahua and Reynosa
airports, as well as passenger traffic growth.
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VIP lounges
, +73.0%, due to the opening of 3 new lounges in the last 12 months, and a higher
volume of users.
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Car rental
, +16.3%, due to the leasing of 23 new locales during 2018 and improved contractual
terms.
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Diversification revenues
grew
7.3%.
Construction revenues
represent
the value of improvements to concessioned assets. They are equal to
construction costs
and generate neither a gain nor a
loss. Construction revenues and costs are determined based on the advance in the execution of projects in accordance with the airports’
Master Development Programs (MDP), and variations depend on the rate of project execution.
Costs and Operating Expenses
The sum of
cost of airport services
and general and administrative expenses (G&A)
increased 4.0%, mainly due to an increase in payroll expense as a result
of severance payments incurred in the quarter, as well as an adjustment to the retirement labor liability. Basic services grew
because of an increase in electricity tariffs of more than 40%.
The
major maintenance provision
was Ps. 65 million. The outstanding balance of the maintenance provision as of December 31, 2018 was Ps. 944 million.
The
airport concession tax
increased
22.6% as a result of the growth in revenues, while the
technical assistance fee
increased 28.7%.
As a result of the foregoing,
total
operating costs and expenses
decreased 9.3% compared to the prior year period. Excluding construction costs, total costs and
operating expenses increased 5.1%.
Operating Income and
Adjusted EBITDA
Operating income
rose 27.5%,
with an operating margin of 52.4%.
Adjusted EBITDA
increased 21.9%,
with an Adjusted EBITDA margin of 69.9%.
Financing Income, Taxes,
and Net Income
Financing Income
was Ps. 20 million.
Taxes
were Ps. 259 million, and
the effective tax rate was 24.1%.
Consolidated net income
increased
31.2% to Ps. 819 million.
Earnings per share
, based on
net income of the controlling interest, increased 31.4% to Ps. 2.07; earnings per ADS increased 31.9% to US$0.84. Each ADS represents
eight Series B shares.
MDP and Strategic
Investments
Capital investments and major maintenance
works in the MDPs and strategic investments totaled Ps. 342 million, comprised of Ps. 279 million in improvements to concessioned
assets, Ps. 53 million in major maintenance, Ps. 2 million in other expenditures and Ps. 8 million in strategic investments.
The most important investment expenditures
included:
In 2018, capital investments and major
maintenance works in the MDPs and strategic investments totaled Ps. 1,449 million, comprised of Ps. 1,142 million in improvements
to concessioned assets, Ps. 139 million in major maintenance, Ps. 3 million in other expenditures and Ps. 165 million in strategic
investments.
Debt
Derivatives
As of the date of this report, OMA has
no financial derivatives exposure.
Cash Flow Statement
In the twelve months of 2018,
cash
flows from operating activities
increased 26.1% to Ps. 3,684 million. The increase resulted mainly from higher operating income.
Investing activities
used cash
of Ps. 1,085 million in the twelve months. Outflows included Ps. 1,103 million for improvements to concessioned assets and Ps.
150 million for acquisition of equipment.
Financing activities
generated
an outflow of Ps. 1,918 million, mainly for payment of dividends totaling Ps. 1,606 million.
Cash
increased Ps. 681 million
during 2018, to Ps. 2,959 million as of December 31, 2018.
Material Events
OMA informs the appointment of its
Chief Executive Officer.
On November 12, 2018, Ricardo Dueñas was appointed Chief Executive Officer of OMA.
Notes to the Financial Information
Financial statements are prepared in
accordance with International Financial Reporting Standards (“IFRS”), and presented in accordance with IAS 34 “Interim
Financial Reporting.”
Unless stated otherwise, all comparisons
of operating or financial results are made with respect to the comparable prior year period. The exchange rates used to convert
foreign currency amounts were Ps. 19.7354 as of December 31, 2017 and Ps. 19.6566 as of December 31, 2018.
Adjusted
EBITDA and Adjusted EBITDA margin:
OMA defines Adjusted EBITDA as EBITDA less construction revenue plus construction expense
and maintenance provision. We calculate the Adjusted EBITDA margin as Adjusted EBITDA divided by the sum of aeronautical revenue
and non-aeronautical revenue. Construction revenue and construction cost do not affect cash flow generation and the maintenance
provision corresponds to capital investments. OMA defines EBITDA as net income minus net comprehensive financing income, taxes,
and depreciation and amortization. Neither Adjusted EBITDA nor EBITDA should 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. It should be noted that
neither Adjusted EBITDA nor EBITDA is defined under IFRS, and may be calculated differently by different companies.
Capital
investments:
includes investments in fixed assets (including investments in land, machinery, and equipment) and improvements
to concessioned properties under the Master Development Plan (MDP) plus strategic investments.
Construction
revenue, construction cost:
IFRIC 12 “Service Concession Arrangements” addresses how service concession operators
should account for the obligations they undertake and rights they receive in service concession arrangements. The concession contracts
for each of OMA’s airport subsidiaries establishes that the concessionaire is obligated to carry out improvements to the
infrastructure transferred in exchange for the rights over the concession granted by the Federal Government. The latter will receive
all the assets at the end of the concession period. As a result the concessionaire should recognize, using the percentage of completion
method, the revenues and costs associated with the improvements to the concessioned assets. The amount of the revenues and costs
so recognized should be the price that the concessionaire pays or would pay in an arm’s length transaction for the execution
of the works or the purchase of machinery and equipment, with no profit recognized for the construction or improvement. The application
of IFRIC 12 does not affect operating income, net income, or EBITDA, but does affect calculations of margins based on total revenues.
Passengers
and
Terminal passengers:
All references to passenger traffic volumes are to Terminal passengers, which includes passengers
on the three types of aviation (commercial, charter, and general aviation), and excludes passengers in transit.
Analyst Coverage
In accordance with the requirements
of the Mexican Stock Exchange, the analysts covering OMA are:
This report 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:
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Webpage http://ir.oma.aero
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Twitter http://twitter.com/OMAeropuertos
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Facebook https://www.facebook.com/
OMAeropuertos
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Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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Grupo Aeroportuario del Centro
Norte, S.A.B. de C.V.
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By:
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/s/ Ruffo
Pérez Pliego
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Ruffo
Pérez Pliego
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Chief Financial Officer
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Dated February 12, 2019
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