Consolidated Revenues, ex-IFRIC12, 16.2% above
pre-pandemic levels
Record Adjusted EBITDA of $141 million;
Adjusted EBITDA margin, ex-IFRIC12, 1.5 p.p above 1Q19
Corporación América Airports S.A. (NYSE: CAAP), (“CAAP”
or the “Company”) one of the leading private airport operators in
the world, reported today its unaudited, consolidated results for
the three-month period ended March 31, 2023 (first quarter 2023).
Financial results are expressed in millions of U.S. dollars and are
prepared in accordance with International Financial Reporting
Standards (IFRS) as issued by the International Accounting
Standards Board (“IASB”).
Commencing 3Q18, the Company began reporting results of its
Argentinean subsidiaries applying Hyperinflation Accounting, in
accordance with IFRS rule IAS 29 (“IAS 29”), as detailed in Section
“Hyperinflation Accounting in Argentina” on page 23.
First Quarter 2023 Highlights
- Consolidated Revenues of $382.1 million, a 48.0% year over year
(YoY) increase, or 6.0% above 1Q19. Excluding the impact of IFRS
rule IAS 29, revenues increased 49.4% YoY to $386.6 million,
reflecting increases of $68.3 million in Aeronautical Revenues,
$37.1 million in Commercial Revenues, and $20.3 million in
Construction Service Revenue. Revenues ex-IAS 29 were 103.0% of
pre-pandemic levels.
- Delivered YoY increases across key operating metrics:
- 37.3% in passenger traffic to 18.5 million, reaching 89.9% of
1Q19 levels.
- 5.2% in cargo volume to 85.2 thousand tons, to 81.0% of 1Q19
levels.
- 27.8% in aircraft movements, to 93.9% of 1Q19 levels.
- Operating Income of $102.0 million, up from $51.8 million in
1Q22, mainly reflecting the YoY recovery in passenger traffic.
- Adjusted EBITDA on an “As Reported” basis increased to $140.6
million, from $89.2 million in the year-ago period, with Adjusted
EBITDA margin ex-IFRIC12 expanding to 40.2% from 36.3%.
- Compared to 1Q19, Adjusted EBITDA increased 20.2%, with
Adjusted EBITDA margin ex-IFRIC12 expanding 1.5 percentage
points.
- Strong cash position with Cash & cash equivalents totaling
$401.1 million.
- Net debt to LTM Adjusted EBITDA improved to 2.1x, from 2.4x as
of December 31, 2022.
CEO Message
Commenting on the results for the quarter Mr. Martín Eurnekian,
CEO of Corporación América Airports, noted: “We are pleased with
the strong start to the year, continuing the recovery trend from
2022 and delivering record-high Adjusted EBITDA of $140.6 million,
surpassing 1Q19 levels by 20%. This good performance was driven by
positive Adjusted EBITDA across all countries of operations,
supported by the success of our commercial initiatives, solid
aeronautical revenues along with cost controls. Notably, this was
achieved with total passenger traffic at 90% of pre-pandemic
levels.
We are on track with our capex commitments in Argentina which is
part of the extension agreement previously announced. Importantly,
last month we achieved a key milestone with the opening of our new
state-of-the-art departure terminal at Ezeiza Airport, in
Argentina. We are particularly pleased to be operating the most
modern airport in Latin America. We are making progress in other
countries as well. In Armenia, we remain in discussions with the
government with respect to a new capex plan to increase capacity to
serve, with a high quality of service, the growing demand we are
experiencing. In Italy, the approval process for the new master
plan at Florence Airport remains on track, which will allow us to
unlock unattended demand.
Expanding our airport network is also an important growth
opportunity for us and a key pillar of our value-creation strategy.
To that end, the negotiations with Nigerian authorities in
connection with the concession agreements for Abuja and Kano
airports are moving ahead, as expected. Furthermore, as we seek
other markets in which to expand our network, we are currently
analyzing two additional attractive airport concession investment
opportunities in other countries.
Although the macro environment remains volatile, passenger
traffic in April has further increased, reaching 95% of 2019 levels
and we expect travel demand to continue expanding throughout the
year. As we look to the future, with an investment plan in place
and a solid financial position, we are well prepared to deliver
long-term value creation to our shareholders.”
Operating & Financial
Highlights
(In millions of U.S. dollars, unless
otherwise noted)
1Q23 as reported
1Q22 as reported
% Var as reported
IAS 29 1Q23
1Q23 ex IAS 29
1Q22 ex IAS 29
% Var ex IAS 29
Passenger Traffic (Million
Passengers) (1)
18.5
13.5
37.3%
18.5
13.5
37.3%
Revenue
382.1
258.1
48.0%
-4.6
386.6
258.7
49.4%
Aeronautical Revenues
185.6
119.4
55.5%
-1.8
187.4
119.0
57.4%
Non-Aeronautical Revenues
196.5
138.8
41.6%
-2.8
199.2
139.7
42.6%
Revenue excluding construction
service
348.5
244.5
42.6%
-2.5
351.0
243.4
44.2%
Operating Income / (Loss)
102.0
51.8
96.8%
-17.6
119.6
67.2
78.0%
Operating Margin
26.7%
20.1%
662
0.0%
30.9%
26.0%
497
Net (Loss) / Income Attributable to
Owners of the Parent
31.7
25.9
22.1%
25.1
6.5
-5.8
-212.3%
EPS (US$)
0.20
0.16
22.1%
0.16
0.04
-0.04
-212.2%
Adjusted EBITDA
140.6
89.2
57.6%
-0.6
141.2
88.7
59.2%
Adjusted EBITDA Margin
36.8%
34.6%
223
-
36.5%
34.3%
223
Adjusted EBITDA Margin excluding
Construction Service
40.2%
36.3%
388
-
40.1%
36.3%
383
Net Debt to LTM Adjusted EBITDA
2.1x
5.1x
-
-
-
-
-
Net Debt to LTM Adjusted EBITDA excl.
impairment on intangible assets (2)
2.1x
5.1x
-
-
-
-
-
Note: Figures in historical dollars (excluding IAS29) are included
for comparison purposes. 1)
Starting November 2019, the Company has
reclassified its passenger traffic figures for Brasilia Airport
between international, domestic and transit retroactively since
June 2018 to return to the count methodology utilized until May
2018. Notwithstanding, total traffic figures remain unchanged.
2)
LTM Adjusted EBITDA excluding impairments
of intangible assets.
To obtain the full text of this earnings release and the
earnings presentation, please click on the following link:
http://investors.corporacionamericaairports.com/Results-Center
1Q23 EARNINGS CONFERENCE CALL
When:
10:00 a.m. Eastern Time, May 24, 2023
Who:
Mr. Martín Eurnekian, Chief Executive
Officer
Mr. Jorge Arruda, Chief Financial
Officer
Mr. Patricio Iñaki Esnaola, Head of
Investor Relations
Dial-in:
1-404-975-4839 (U.S. Local);
1-833-470-1428 (U.S. Toll-Free); +44-208-068-2558 (UK). Participant
access code: 437579
Webcast:
CAAP 1Q23 Earnings Conference Call
Replay:
1-929-458-6194 (U.S. Local);
1-866-813-9403 (U.S., Toll Free); +44-204-525-0658 (Intern.).
Replay access code: 934859
Use of Non-IFRS Financial Measures
This announcement includes certain references to Adjusted
EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA excluding
Construction Service and Adjusted EBITDA Margin excluding
Construction service, as well as Net Debt:
Adjusted EBITDA is defined as income for the period
before financial income, financial loss, income tax expense,
depreciation and amortization.
Adjusted EBITDA Margin is calculated by dividing Adjusted
EBITDA by total revenues.
Adjusted EBITDA excluding Construction Service (“Adjusted
EBITDA ex-IFRIC”) is defined as income for the period before
construction services revenue and cost, financial income, financial
loss, income tax expense, depreciation and amortization.
Adjusted EBITDA Margin excluding Construction Service
(“Adjusted EBITDA Margin ex-IFRIC12”) excludes the effect of
IFRIC12 with respect to the construction or improvements to assets
under the concession and is calculated by dividing Adjusted EBITDA
excluding Construction Service revenue and cost, by total revenues
less Construction service revenue.
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA
excluding Construction Service and Adjusted EBITDA Margin excluding
Construction Service are not measures recognized under IFRS and
should not be considered as an alternative to, or more meaningful
than, consolidated net income for the year as determined in
accordance with IFRS or as indicators of our operating performance
from continuing operations. Accordingly, readers are cautioned not
to place undue reliance on this information and should note that
these measures as calculated by the Company, may differ materially
from similarly titled measures reported by other companies. We
believe that the presentation of Adjusted EBITDA and Adjusted
EBITDA excluding Construction Service enhances an investor’s
understanding of our performance and are useful for investors to
assess our operating performance by excluding certain items that we
believe are not representative of our core business. In addition,
Adjusted EBITDA and Adjusted EBITDA excluding Construction Service
are useful because they allow us to more effectively evaluate our
operating performance and compare the results of our operations
from period to period without regard to our financing methods,
capital structure or income taxes and construction services (when
applicable).
Net debt is calculated by deducting “Cash and cash
equivalents” from total financial debt.
Figures ex-IAS 29 result from dividing nominal Argentine
pesos for the Argentine Segment, by the average foreign exchange
rate of the Argentine Peso against the US dollar in the period.
Percentage variations ex-IAS 29 figures compare results as
presented in the prior year quarter before IAS 29 came into effect,
against ex-IAS 29 results for this quarter as described above. For
comparison purposes, the impact of adopting IAS 29 in Aeropuertos
Argentina 2000, the Company’s largest subsidiary in Argentina, is
presented separately in each of the applicable sections of this
earnings release, in a column denominated “IAS 29”. The impact from
“Hyperinflation Accounting in Argentina” is described in more
detail page 23 of this report.
Definitions and Concepts
Commercial Revenues: CAAP derives commercial revenue
principally from fees resulting from warehouse usage (which
includes cargo storage, stowage and warehouse services and related
international cargo services), services and retail stores, duty
free shops, car parking facilities, catering, hangar services, food
and beverage services, retail stores, including royalties collected
from retailers’ revenue, and rent of space, advertising, fuel,
airport counters, VIP lounges and fees collected from other
miscellaneous sources, such as telecommunications, car rentals and
passenger services.
Construction Service revenue and cost: Investments
related to improvements and upgrades to be performed in connection
with concession agreements are treated under the intangible asset
model established by IFRIC12. As a result, all expenditures
associated with investments required by the concession agreements
are treated as revenue generating activities given that they
ultimately provide future benefits, and subsequent improvements and
upgrades made to the concession are recognized as intangible assets
based on the principles of IFRIC12. The revenue and expense are
recognized as profit or loss when the expenditures are performed.
The cost for such additions and improvements to concession assets
is based on actual costs incurred by CAAP in the execution of the
additions or improvements, considering the investment requirements
in the concession agreements. Through bidding processes, the
Company contracts third parties to carry out such construction or
improvement services. The amount of revenues for these services is
equal to the amount of costs incurred plus a reasonable margin,
which is estimated at an average of 3.0% to 5.0%.
About Corporación América Airports
Corporación América Airports acquires, develops and operates
airport concessions. The Company is a leading private airport
operator in the world, currently operating 53 airports in 6
countries across Latin America and Europe (Argentina, Brazil,
Uruguay, Ecuador, Armenia and Italy). In 2022, Corporación América
Airports served 65.6 million passengers, 83.7% above the 35.7
million passengers served in 2021 and 22.1% below the 84.2 million
served in 2019. The Company is listed on the New York Stock
Exchange where it trades under the ticker “CAAP”. For more
information, visit
http://investors.corporacionamericaairports.com
Forward Looking Statements
Statements relating to our future plans, projections, events or
prospects are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements include all statements that are not historical facts and
can be identified by terms such as “believes,” “continue,” “could,”
“potential,” “remain,” “will,” “would” or similar expressions and
the negatives of those terms. Forward-looking statements involve
known and unknown risks, uncertainties and other factors that may
cause our actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Many factors could cause our actual activities or
results to differ materially from the activities and results
anticipated in forward-looking statements, including, but not
limited to: the Covid-19 impact, delays or unexpected casualties
related to construction under our investment plan and master plans,
our ability to generate or obtain the requisite capital to fully
develop and operate our airports, general economic, political,
demographic and business conditions in the geographic markets we
serve, decreases in passenger traffic, changes in the fees we may
charge under our concession agreements, inflation, depreciation and
devaluation of the AR$, EUR, BRL, UYU or the AMD against the U.S.
dollar, the early termination, revocation or failure to renew or
extend any of our concession agreements, the right of the Argentine
Government to buy out the AA2000 Concession Agreement, changes in
our investment commitments or our ability to meet our obligations
thereunder, existing and future governmental regulations, natural
disaster-related losses which may not be fully insurable, terrorism
in the international markets we serve, epidemics, pandemics and
other public health crises and changes in interest rates or foreign
exchange rates. The Company encourages you to review the
‘Cautionary Statement’ and the ‘Risk Factor’ sections of our annual
report on Form 20-F for the year ended December 31, 2019 and any of
CAAP’s other applicable filings with the Securities and Exchange
Commission for additional information concerning factors that could
cause those differences.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230523005873/en/
Patricio Iñaki Esnaola Email:
patricio.esnaola@caairports.com Phone: +5411 4899-6716
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