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 April
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 First Quarter 2019
Operating and Financial Results
Monterrey, Mexico, April 24, 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 first quarter 2019.
1Q19 Results Summary
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Passenger traffic
grew 4.3%, reaching 5.1
million passengers.
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Capital investments and major maintenance
included
in the Master Development Plans (MDPs) plus
strategic investments
amounted Ps. 241 million
for the quarter.
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Aeronautical revenues
increased 9.9% and
Non-Aeronautical revenues
grew 13.3%
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Adjusted EBITDA
grew 18.4% and Net Income
increased 24.7%.
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OMA
will hold its 1Q19 earnings conference call on April 25, 2019 at 12 pm Eastern time, 11 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 13689621. The conference call
will also be available by webcast at http://ir.oma.aero/events.cfm.
1Q19 Operating Results
Operations, Passengers,
and Cargo
11 routes were opened during the quarter,
including 9 domestic routes and 2 international routes, while 4 routes were cancelled. The number of available seats offered increased
5.3% compared to 1Q18.
Total passenger traffic
increased
4.3%. Of total traffic, 85.5% was domestic and 14.5% was international.
Domestic passenger traffic
increased
5.0%. Ten airports increased traffic. The airports with the largest increases were:
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Monterrey
, mainly on the Mexico City, Guadalajara, Cancún and Tijuana routes.
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Ciudad Juárez
, on its Mexico City and Bajío routes.
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Zacatecas
, on its Mexico City route.
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Culiacán
, on its Tijuana, Guadalajara and Mexico City routes.
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International passenger traffic
increased 0.8%. Nine airports recorded increases in international traffic, led by Mazatlán, as a result of increased traffic
on its Los Angeles route.
Commercial Operations
OMA implemented 14 commercial initiatives
in the quarter. The commercial space occupancy rate in the passenger terminals was 98.6%.
Hotel Services
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The
NH Collection Terminal 2 Hotel
had an 80.2% occupancy rate, a decrease of 6.3 percentage
points. The average room rate was Ps. 2,366 per night.
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The
Hilton Garden Inn
had a 78.2% occupancy rate, an increase of 1.4 percentage points,
with an average room rate of Ps. 2,298 per night.
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Freight Logistics Services
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OMA Carga
’s freight handled increased 0.1% to 7,856 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. 9.2 million. During the quarter, construction began for a new warehouse of 4,851 m2 and an expansion of 4,080 m2 at an existing
warehouse. These are scheduled to be completed during 2Q19.
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Consolidated
Financial Results
Revenues
Aeronautical revenues
increased
9.9%.
Non-aeronautical revenues
increased
13.3%. Non-aeronautical revenues per passenger was
Ps. 83.3.
Commercial revenues
increased
20.1%. The line items with the largest increases were:
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Parking,
+19.0%, as a result of growth in the number of users and a higher average ticket
fare in all of our airports, as well as the increased capacity in the Reynosa airport.
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Advertising
, +53.5%, due to the new advertising contract which started in 4Q18.
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Car rental
, +17.2%, due to the leasing of 25 new locations during 2018 and improved contractual
terms.
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Diversification revenues
grew
9.1%.
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)
decreased 6.6%, mainly due to a decrease in professional fees and payroll
expenses. Additionally, adoption of IFRS 16 (“Leases”) generated a decrease of Ps.2.0 million for rents included in
other costs and expenses, as well as a decrease of Ps.7.7 million in cost of hotel services.
The
major maintenance provision
was Ps. 42 million. The outstanding balance of the maintenance provision was Ps. 953 million.
The
airport concession tax
increased
11.1% as a result of the growth in revenues, while the
technical assistance fee
decreased 11.7%. Effective January, 2019,
technical assistance fee is equal to 3% of consolidated EBITDA before technical assistance, compared to the 4% applicable during
2018.
As a result of the foregoing,
total
operating costs and expenses
decreased 17.5%. Excluding construction costs, total costs and operating expenses decreased 2.1%.
Operating Income and
Adjusted EBITDA
Operating income
rose 19.4%,
with an operating margin of 58.1%.
Adjusted EBITDA
increased 18.4%,
with an Adjusted EBITDA margin of 72.6%.
Financing Income, Taxes,
and Net Income
Financing Income
was Ps. 44 million.
Taxes
were Ps. 323 million, and
the effective tax rate was 29.8%.
Consolidated net income
increased
24.7% to Ps. 760 million.
Earnings per share
, based on
net income of the controlling interest, increased 24.4% to Ps. 1.92; earnings per ADS increased 17.7% to US$0.79. 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. 241 million, comprised of Ps. 192 million in improvements to concessioned
assets, Ps. 29 million in major maintenance and Ps. 20 million in strategic investments.
The most important investment expenditures
included:
Debt
Derivatives
As of the date of this report, OMA has
no financial derivatives exposure.
Cash Flow Statement
In the first three months of 2019,
cash
flows from operating activities
increased 42.3% to Ps. 1,097 million, compared to same period of 2018.
Investing activities
used cash
of Ps. 130 million in the first three months. Outflows included Ps. 167 million for improvements to concessioned assets and Ps.
24 million for acquisition of equipment.
Financing activities
generated
an outflow of Ps. 90 million, mainly for interest payments totaling Ps. 85 million.
Cash
increased Ps. 887 million
during the first quarter, to Ps. 3,821 million as of March 31, 2019.
Material Events
On April 5, 2019, OMA published the
call for the Annual Ordinary General Shareholders’ Meeting, to be held on April 29, 2019. Among other items, the Board of
Directors is presenting a proposal for approval by the shareholders of a cash dividend of Ps. 1,600 million.
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. 18.3445 as of March 31, 2018, Ps. 19.6566 as of December 31, 2018 and Ps. 19.3793 as of March
31, 2019.
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 April 24, 2019
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