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 October 2018
GRUPO
AEROPORTUARIO DEL SURESTE, S.A.B. de C.V.
(SOUTHEAST
AIRPORT GROUP)
(Translation
of Registrant’s Name Into English)
México
(Jurisdiction
of incorporation or organization)
Bosque
de Alisos No. 47A– 4th Floor
Bosques
de las Lomas
05120
México, D.F.
(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.)
|
Form 20-F
x
|
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-
.)
Contacts:
ASUR
Lic. Adolfo
Castro
+52-55-5284-0408
acastro@asur.com.mx
|
|
InspIR
Group
Susan Borinelli
+1-646-330-5907
susan@inspirgroup.com
|
ASUR 3Q18 Passenger Traffic
Increased 6.7% YoY
in Mexico, 3.8% in San
Juan, Puerto Rico and 7.3% in Colombia
Mexico City, October 22, 2018 - Grupo Aeroportuario
del Sureste, S.A.B. de C.V. (NYSE: ASR; BMV: ASUR)
(ASUR), a leading international airport group with operations in Mexico,
the U.S. and Colombia, today announced results for the three-and nine-month periods ended September 30, 2018.
3Q18 Highlights
1
|
·
|
Passenger traffic in
Mexico rose 6.7% YoY, reflecting increases of 10.5% and 2.8% in domestic and international traffic, respectively. Cancun Airport
was the main traffic driver.
|
|
·
|
Traffic in Puerto Rico
(Aerostar) increased 3.8%, as a 5.3% increase in domestic traffic more than offset the 5.9% decline in international traffic. The
recovery in total passenger traffic reflects the impact of Hurricane Maria, which hit the island on September 21, 2017.
|
|
·
|
Traffic in Colombia (Airplan)
increased 7.3% YoY, reflecting increases of 6.4% in domestic traffic and 12.4% in international traffic.
|
|
·
|
Consolidated commercial
revenues per passenger reached Ps.92.5.
|
|
·
|
Consolidated EBITDA rose
18.9% YoY, reaching Ps.2,278.3 million.
|
|
·
|
Cash position at the
end of the quarter reached Ps.4,569.1 million. Net Debt to LTM EBITDA stood at 1.22x, reflecting the consolidation of Aerostar
and Airplan.
|
Passenger
Traffic
ASUR’s total passenger traffic in 3Q18
increased 6.3% YoY to 13.3 million passengers, reflecting increases of 6.7% in traffic in Mexico, 3.8% in Puerto Rico and 7.3%
in Colombia.
The 6.7% YoY growth in passenger traffic in
Mexico reflects increases of 10.5% and 2.8% in domestic and international traffic, respectively. Cancun was the main driver behind
traffic growth, with increases of 10.6% and 2.8% in domestic and international traffic, respectively, with the majority of ASUR’s
other Mexican airports also contributing to higher traffic.
Traffic in Puerto Rico increased 3.8% YoY,
recovering following the impact of Hurricane Maria, which hit the island in September 2017. Domestic traffic increased 5.3% YoY,
more than offsetting a decline of 5.9% in international traffic.
Colombia reported a 7.3% YoY increase in total
traffic driven by increases of 12.4% and 6.4% in international and domestic traffic, respectively.
Tables with detailed passenger traffic information
for each airport can be found on page 19 of this report.
Table 2: Passenger Traffic Summary
|
|
|
|
|
|
|
|
|
Third Quarter
|
% Chg.
|
|
Nine-Months
|
% Chg.
|
|
2017
|
2018
|
|
2017
|
2018
|
Total México
|
7,783,057
|
8,303,559
|
6.7
|
|
23,530,519
|
25,158,418
|
6.9
|
- Cancun
|
5,909,015
|
6,251,306
|
5.8
|
|
17,996,106
|
19,189,289
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6.6
|
- 8 Others Airports
|
1,874,042
|
2,052,253
|
9.5
|
|
5,534,413
|
5,969,129
|
7.9
|
Domestic Traffic
|
3,929,206
|
4,342,594
|
10.5
|
|
10,641,806
|
11,725,081
|
10.2
|
- Cancun
|
2,254,689
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2,493,382
|
10.6
|
|
5,839,906
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6,525,887
|
11.7
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- 8 Others Airports
|
1,674,517
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1,849,212
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10.4
|
|
4,801,900
|
5,199,194
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8.3
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International traffic
|
3,853,851
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3,960,965
|
2.8
|
|
12,888,713
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13,433,337
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4.2
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- Cancun
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3,654,326
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3,757,924
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2.8
|
|
12,156,200
|
12,663,402
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4.2
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- 8 Others Airports
|
199,525
|
203,041
|
1.8
|
|
732,513
|
769,935
|
5.1
|
Total San Juan, Puerto Rico
1
|
2,144,760
|
2,226,595
|
3.8
|
|
6,865,311
|
6,362,573
|
(7.3)
|
Domestic Traffic
|
1,858,789
|
1,957,414
|
5.3
|
|
6,005,732
|
5,672,204
|
(5.6)
|
International traffic
|
285,971
|
269,181
|
(5.9)
|
|
859,579
|
690,369
|
(19.7)
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Total Colombia
2
|
2,610,921
|
2,800,730
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7.3
|
|
7,727,462
|
7,681,418
|
(0.6)
|
Domestic Traffic
|
2,248,484
|
2,393,455
|
6.4
|
|
6,709,903
|
6,516,614
|
(2.9)
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International traffic
|
362,437
|
407,275
|
12.4
|
|
1,017,559
|
1,164,804
|
14.5
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Total traffic
|
12,538,738
|
13,330,884
|
6.3
|
|
38,123,292
|
39,202,409
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2.8
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Domestic Traffic
|
8,036,479
|
8,693,463
|
8.2
|
|
23,357,441
|
23,913,899
|
2.4
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International traffic
|
4,502,259
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4,637,421
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3.0
|
|
14,765,851
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15,288,510
|
3.5
|
Note:
Passenger figures for Mexico and Colombia exclude transit and general aviation passengers, while Puerto Rico includes transit
passengers and general aviation.
1
On May 26, 2017, ASUR increased its ownership stake in Aerostar, operator of LMM Airport in Puerto Rico from 50% to 60%.
ASUR began fully consolidating line by line Aerostar’s operations starting June 1, 2017. For comparison purposes, this table
includes traffic figures for LMM Airport for 3Q18 and 3Q17.
2
On October 19, 2017, ASUR began to consolidate Airplan’s
operations (Colombia). For comparison purposes, this table includes traffic figures for Airplan for 3Q17 and 3Q18.
|
Review of Consolidated Results
In May 2017, ASUR increased its share ownership
in Aerostar, operator of LMM Airport in Puerto Rico, to 60% from its prior 50% ownership. Accordingly, until May 31, 2017, ASUR’s
ownership in Aerostar was accounted for by the equity method, while starting June 1, 2017, ASUR began to fully consolidate Aerostar
results on a line by line basis. In addition, on October 19, 2017, ASUR acquired a 92.42% ownership stake in Airplan, which operates
six airports in Colombia, and starting on that date, ASUR began to fully consolidate Airplan’s operations on a line by line
basis. On May 25, 2018, ASUR acquired a 7.58% ownership stake in Airplan, bringing its total share ownership in Airplan to 100.0%.
Table 3: Summary of Consolidated Results
|
|
|
|
|
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|
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Third Quarter
|
% Chg.
|
|
Nine-Months
|
% Chg.
|
|
2017
|
2018
|
|
2017
|
2018
|
Total Revenues
|
3,230,104
|
3,682,047
|
14.0
|
|
8,642,149
|
11,486,011
|
32.9
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Aeronautical Services
|
1,732,467
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2,251,115
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29.9
|
|
4,587,720
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6,715,133
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46.4
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Non-Aeronautical Services
|
1,088,079
|
1,340,615
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23.2
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|
3,110,280
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4,160,293
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33.8
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Total Revenues Excluding Construction Revenues
|
2,820,546
|
3,591,730
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27.3
|
|
7,698,000
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10,875,426
|
41.3
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Construction Revenues
5
|
409,558
|
90,317
|
(77.9)
|
|
944,149
|
610,585
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(35.3)
|
Total Operating Costs & Expenses
|
1,574,494
|
2,025,512
|
28.6
|
|
3,740,868
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5,834,738
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56.0
|
Operating Profit
|
1,655,610
|
1,656,535
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0.1
|
|
4,901,281
|
5,651,273
|
15.3
|
Operating Margin
|
51.26%
|
44.99%
|
(627 bps)
|
|
56.7%
|
49.2%
|
(751 bps)
|
Adjusted Operating Margin
1
|
58.70%
|
46.12%
|
(1258 bps)
|
|
63.7%
|
52.0%
|
(1171 bps)
|
EBITDA
|
1,916,603
|
2,278,320
|
18.9
|
|
5,475,755
|
7,093,833
|
29.5
|
EBITDA Margin
|
59.34%
|
61.88%
|
254 bps
|
|
63.4%
|
61.8%
|
(160 bps)
|
Adjusted EBITDA Margin
2
|
67.95%
|
63.43%
|
(452 bps)
|
|
71.1%
|
65.2%
|
(590 bps)
|
Net Income
|
1,145,613
|
1,006,574
|
(12.1)
|
|
3,636,319
|
3,572,062
|
(1.8)
|
Majority Net Income
|
1,100,695
|
988,054
|
(10.2)
|
|
3,571,974
|
3,529,012
|
(1.2)
|
Earnings per Share
|
3.6690
|
3.2935
|
(10.2)
|
|
11.9066
|
11.7634
|
(1.2)
|
Earnings per ADS in US$
|
1.9596
|
1.7591
|
(10.2)
|
|
6.3593
|
6.2828
|
(1.2)
|
|
|
|
|
|
|
|
|
Total Commercial Revenues per Passenger
3
|
99.5
|
92.5
|
(7.1)
|
|
105.8
|
97.3
|
(8.0)
|
Commercial Revenues
|
992,211
|
1,241,918
|
25.2
|
|
2,824,359
|
3,840,862
|
36.0
|
Commercial Revenues from Direct Operations per Passenger
4
|
19.3
|
17.4
|
(9.9)
|
|
18.9
|
18.1
|
(4.4)
|
Commercial Revenues Excl. Direct Operations per Passenger
|
80.2
|
75.1
|
(6.4)
|
|
86.9
|
79.2
|
(8.8)
|
|
|
|
|
|
|
|
|
1
Adjusted Operating Margin excludes the effect
of IFRIC 12 with respect to the construction or improvements to concessioned assets in Mexico, and is equal to operating profit
divided by total revenues excluding construction services revenues.
2
Adjusted EBITDA Margin excludes the effect of
IFRIC 12 with respect to the construction or improvements to concessioned assets in Mexico, and is calculated by dividing EBITDA
by total revenues excluding construction services revenues.
3
Passenger figures include transit and general
aviation passengers for Mexico, Puerto Rico and Colombia.
4
Represents ASUR’s operations in convenience
stores.
5
Construction revenues for Airplan in 3Q18 include
the actual construction revenues which are equal to construction costs of Ps.63.1 million plus an estimated revenue decline derived
from the valuation of the intangible asset at its present value (guaranteed revenues from the concession) of Ps.80.9 million according
to IFRIC 12.
Consolidated Revenues
Consolidated Revenues
for 3Q18 rose
14.0% YoY to Ps.3,682.0 million, mainly as a result of the following increases:
|
·
|
29.9% in revenues from
aeronautical services to Ps.2,251.1 million. Mexico contributed with Ps.1,495.9 million in revenues from aeronautical services
in 3Q18, while Puerto Rico and Colombia contributed with Ps.433.8 million and Ps.321.3 million, respectively; and
|
|
·
|
23.2% in revenues from
non-aeronautical services to Ps.1,340.6 million, principally reflecting the 25.2% increase in commercial revenues. Mexico contributed
with Ps.997.4 million in commercial revenues, while Puerto Rico and Colombia contributed with Ps.242.8 million and Ps.100.5 million,
respectively.
|
This was partially offset by a 77.9% decline
in revenues from construction services in Mexico, Puerto Rico and Colombia as a result of lower capital expenditures and other
investments in concessioned assets during the period.
Excluding
revenues from construction services
,
which are deducted as costs under IFRS accounting standards, total revenues would have increased 27.3% YoY to Ps.3,591.7 million.
Total revenues in Puerto Rico and Colombia in 3Q17 represented 18.8% and 11.7%, respectively, of ASUR’s consolidated revenues
excluding revenues from construction services.
Commercial Revenues
in 3Q18 increased
25.2% YoY, mainly reflecting the 6.3% increase in total passenger traffic, along with the contribution of Ps.100.5 million in Colombia
in 3Q18. Commercial revenues in Mexico rose 14.5%, mainly driven by increases in Duty Free, Food and Beverages, Retail and Car
Rentals, among others, mainly reflecting the opening of Terminal 4 at Cancun Airport during 4Q17. Likewise, Puerto Rico reported
an YoY increase of 17.0%, or Ps.34.9 million in commercial revenues.
Commercial Revenues per Passenger
declined
to Ps.92.5 in 3Q18, from Ps.99.5 in 3Q17. Note that ASUR began to consolidate Aerostar’s results (Puerto Rico) starting June
1, 2017 and Airplan (Colombia) beginning October 19, 2017. As a result, this decline in commercial revenues per passenger reflects
the comparison of 3Q18 figures against operations in Puerto Rico for 3Q17, while Colombia is only included for 3Q18. Mexico contributed
with commercial revenues per passenger of Ps.108.1 in 3Q18, Puerto Rico with Ps.108.0 and Colombia with Ps.35.0. During the period,
and on a stand-alone basis, commercial revenues per passenger increased 7.6% in Mexico, 12.7% in Puerto Rico and 20.0% in Colombia.
Consolidated Operating
Costs and Expenses
Consolidated Operating Costs and Expenses,
including construction costs, for 3Q18 increased by 28.6% YoY, or Ps.451.0 million, to Ps.2,025.5 million. Excluding construction
costs, operating costs and expenses increased 59.2% to Ps.1,854.2 million, mainly impacted by the following increases:
|
·
|
15.9% in operating costs
and expenses excluding construction costs, or Ps.125.1 million, in Mexico principally reflecting increases in professional fees,
higher cost of sales from the opening of stores directly operated by ASUR in Terminal 4 of Cancun Airport, as well as higher security,
energy and maintenance expenses in connection of the new terminal space;
|
|
·
|
32.1%, or Ps.120.6 million,
in Puerto Rico, principally reflecting higher maintenance and energy costs as well as higher insurance costs in connection with
Hurricane Maria. Costs also reflect higher depreciation and amortization from the recognition of the intangible asset resulting
from the valuation of Aerostar under IFRS 3, which impacted amortization expenses by Ps.42.7 million; and
|
|
·
|
A Ps.443.6 million contribution
from Colombia in 3Q18, which was acquired on October 19, 2017. This was mainly due to Ps.139.8 million in cost of services, Ps.1.6
million in technical assistance costs, concession costs of Ps.79.9 million, as well as amortization of the concession of Ps.222.4
million (includes Ps.23.9 million from the recognition of the intangible asset resulting from the valuation of Airplan under IFRS
3, and Ps.133.9 million in initial amortization of complementary works).
|
Cost of Services
increased 36.0%, mainly
due to the increase in expenses of Ps.42.5 million in Puerto Rico reflecting higher energy, insurance and maintenance costs. Colombia
contributed with Ps.139.8 million in expenses, from the consolidation of operations, mainly composed of energy, professional fees,
security and maintenance expenses. Mexico contributed with a Ps.65.7 million increase in cost of services, reflecting higher maintenance
expenses resulting from the opening of Terminal 4 in Cancun airport, along with higher cost of sales from convenience stores directly
operated by ASUR. Higher energy, security, and maintenance expenses also contributed to the increase in cost of services.
Construction Costs
declined 58.2% YoY
to Ps.171.3 million, mainly due to lower levels of capital improvements made to the concessioned assets during the period. Mexico
contributed with decline in construction costs of 77.5%, or Ps.317.2 million, more than offsetting the inclusion of Ps.63.1 million
from Colombia, and a 15.9 million increase in Puerto Rico.
G&A Expenses
, which reflect administrative
expenses in Mexico, increased 13.3% YoY.
Consolidated Technical Assistance
increased
13.5% YoY, mainly reflecting EBITDA growth in Mexico excluding extraordinary items, a factor in the calculation of the fee.
Concession Fees
increased 119.6% YoY,
principally reflecting higher fees paid to the Mexican government, mainly due to an increase in regulated revenues in Mexico, a
factor in the calculation of the fee. Concession fees for 3Q18 also reflect an increase in Puerto Rico and the consolidation of
Colombia.
Depreciation and Amortization
increased
124.8%, or Ps.300.9 million, principally due to: i) a Ps.48.5 million increase in Puerto Rico derived from the recognition of the
concession resulting from the valuation of the investment in Aerostar under IFRS 3 which impacted amortization by Ps.42.7 million,
and ii) a Ps.222.4 million in depreciation in Colombia (includes Ps.23.9 million from recognition of the amortization of the intangible
asset resulting from the valuation of the investment in Airplan under IFRS 3, Ps.133.9 million in initial amortization of complementary
works undertaken and Ps.64.6 million in amortization of committed works due to the increase in the accumulated amortization rate
in the period).
Consolidated Operating
Profit and EBITDA
In 3Q18, ASUR reported a
Consolidated Operating
Profit
of Ps.1,656.5 million and Operating Margin of 45.0%. This was mainly the result of increases of 29.9%, or Ps.518.6 million,
in aeronautical revenues, and 25.2%, or Ps.249.7 million in commercial revenues. For 3Q18, Puerto Rico reported an operating profit
of Ps.180.3 million and Colombia reported an operating loss of Ps.102.8 million.
Adjusted Operating Margin
, which excludes
the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets in Mexico, Colombia, and Puerto
Rico, is calculated as operating profit divided by total revenues less construction services revenues; and was 46.1% in 3Q18 compared
with 58.7% in 3Q17.
EBITDA
increased 18.9%, or Ps.361.7
million, to Ps.2,278.3 million in 3Q18. Puerto Rico reported a decline in EBITDA of 5.7% to Ps.329.7 million, while Colombia contributed
with Ps.200.6 million in EBITDA. Mexican operations reported an 11.5% YoY increase in EBITDA. During 3Q18, ASUR recognized Ps.90.3
million in Construction Revenues, a year-on-year decline of 77.9%, due to lower capital expenditures and investments in concessioned
assets. As a result, 3Q18 EBITDA Margin was 61.9% compared to 59.3% in 3Q17.
Adjusted EBITDA Margin
, which excludes
the effect of IFRIC 12 with respect to the construction of or improvements to concessioned assets in Mexico, Puerto Rico, and Colombia
was 63.4% in 3Q18 compared to 68.0% in 3Q17.
Consolidated Comprehensive
Financing Gain (Loss)
|
|
|
|
|
|
|
|
Table 4: Consolidated Comprehensive Financing Gain (Loss)
|
|
|
|
|
|
|
|
|
Third Quarter
|
% Chg.
|
|
Nine-Months
|
% Chg.
|
|
|
2017
|
2018
|
|
2017
|
2018
|
|
Interest Income
|
54,102
|
58,148
|
7.5
|
|
163,953
|
209,010
|
27.5
|
|
Interest Expense
|
(206,164)
|
(298,931)
|
45.0
|
|
(318,884)
|
(914,861)
|
186.9
|
|
Foreign Exchange Gain (Loss), Net
|
49,226
|
(39,492)
|
n/a
|
|
50,524
|
33,095
|
(34.5)
|
|
Total
|
(102,836)
|
(280,275)
|
172.5
|
|
(104,407)
|
(672,756)
|
544.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In 3Q18, ASUR reported a Ps.280.3 million
Consolidated
Comprehensive Financing Loss
, compared to a Ps.102.8 million loss in 3Q17.
Interest expense rose by Ps.92.8 million during
the period, mainly reflecting a higher debt balance resulting from the consolidation Airplan (Colombia), as well as interest generated
by the loans incurred in Mexico in October 2017, and to a lesser extent from higher interest expenses in Puerto Rico. Interest
income increased by Ps.4.0 million, as a result of a higher cash balance and the increase in interest rates.
In 3Q18, ASUR reported a foreign exchange loss
of Ps.39.5 million, resulting from the 3.8% quarterly average depreciation of the Mexican peso against the U.S. dollar on ASUR’s
foreign currency net asset position. This compared to a Ps.49.2 million foreign exchange gain in 3Q17 resulting from the 1.8% quarterly
average Mexican peso appreciation during that period.
Income Taxes
Income Taxes
for 3Q18 declined by Ps.37.5
million year-over-year, principally due to the following factors:
|
·
|
A Ps.22.1 million decrease
in the provision for income taxes, resulting from a lower taxable income base in Mexico due to a change in the tax amortization
rate on those concessioned assets, along with a deferred income tax gain in Colombia starting October 19, 2017, derived from changes
in tax legislation according to Decree 2235 published on December 27, 2017.
|
|
·
|
A Ps.15.4 million decline
in deferred income taxes, mainly reflecting a deferred income tax gain in Colombia of Ps.76.5 million, derived from changes in
tax legislation according to Decree 2235 published on December 27, 2017, partially offset by a lower taxable income base in Mexico
resulting from a change in the tax amortization rate on the concessioned assets.
|
Majority Net Income
Majority Net Income
for 3Q18 decreased
by 10.2% to Ps.988.0 million, down from Ps.1,100.7 million in 3Q17. Earnings per common share for the quarter were Ps.3.2935 and
earnings per ADS (EPADS) were US$1.7591 (one ADS represents ten series B common shares). This compares with earnings per share
of Ps.3.6690 and EPADS of US$1.9596 for the same period last year.
Consolidated Financial
Position
On September 30, 2018, airport concessions
represented 88.5% of the Company’s total assets, with current assets representing 10.5% and other assets representing 0.9%.
As of September 30, 2018, ASUR had cash
and cash equivalents of Ps.4,569.1 million, a 2.3% decrease from Ps.4,677.4 million at December 31, 2017. Puerto Rico contributed
with Ps.534.9 million in cash and cash equivalents in 3Q18 and Colombia with Ps.126.9 million.
As of September 30, 2018, the valuation of
ASUR’s investment in Aerostar in accordance with IFRS 3 "Business Combinations" resulted in the following effects
in the Balance Sheet: i) the recognition of a net intangible asset of Ps.5,876.1 million, ii) goodwill of Ps.887.2 (net of an impairment
of Ps.4,719.1 million), iii) deferred taxes of Ps.587.6 million, and iv) a minority interest of Ps.5,316.7 million within the stockholders
'equity.
Furthermore, the valuation of ASUR’s
investment in Airplan in accordance with IFRS 3 "Business Combinations" resulted in the following effects in the Balance
Sheet as of September 30, 2018: i) the recognition of a net intangible asset of Ps.1,364.2 million, ii) goodwill of Ps.1,504.9,
iii) deferred taxes of Ps.257.0 million, and iv) Ps.610.4 million from the recognition at bank loans at fair value.
On May 25, 2018, ASUR acquired 7.58% of the
share ownership of Airplan bringing its ownership stake in the company to 100%. This transaction resulted in the recognition of
Shareholders’ Equity in excess of the Ps.46.3 million paid for the acquisition of this additional 7.58% stake in Airplan.
Stockholders’ equity at the close of
3Q18 was Ps.34,698.0 million and total liabilities were Ps.20,393.3 million, representing 63.0% and 37.0% of total assets, respectively.
Deferred liabilities represented 15.1% of ASUR’s total liabilities.
Total Debt at quarter-end decreased to Ps.15,575.9
million, from Ps.17,644.0 million on December 31, 2017, principally reflecting the consolidation of debt in Puerto Rico and Colombia
as shown on Tables 5 and 6, as well as the Ps.4,000 million loan at Cancun Airport. A total of Ps.8,438.5 million, or 54.2% of
ASUR’s total debt, is denominated in U.S. dollars, Ps.4,184.8 million, or 26.9%, in Mexican pesos, and Ps.2,009.6 million,
or 19.0%, of the total is denominated in Colombian pesos.
Net Debt to LTM EBITDA stood at 1.2x at the
close of 3Q18, while the Interest Coverage ratio was 9.7x as of September 30, 2018. This compares with Net Debt to LTM EBITDA and
Interest Coverage Ratios of 1.4x and 6.7x as of March 31, 2018, respectively.
Table 5: Consolidated Debt Indicators
|
|
|
|
|
March 31,
2018
|
June 30,
2018
|
September 30, 2018
|
Leverage
|
|
|
|
Total Debt/ LTM EBITDA (Times)
1
|
2.0
|
1.9
|
1.7
|
Total Net Debt/ LTM EBITDA (Times)
2
|
1.4
|
1.5
|
1.2
|
Interest Coverage Ratio
3
|
6.7
|
7.6
|
9.7
|
Total Debt
|
17,013,615
|
16,596,415
|
15,575,869
|
Short-term Debt
|
449,618
|
573,726
|
295,206
|
Long-term Debt
|
16,563,997
|
16,022,689
|
15,280,663
|
Cash & Cash Equivalents
|
5,725,346
|
3,688,908
|
4,569,129
|
Total Net Debt
4
|
11,288,269
|
12,907,507
|
11,006,740
|
|
|
|
|
|
|
|
|
1
The Total Debt to EBITDA Ratio is calculated as ASUR’s interest-bearing liabilities divided by its EBITDA.
2
The Total Net Debt to EBITDA Ratio is calculated as ASUR’s interest-bearing liabilities minus Cash & Cash Equivalents,
divided by its EBITDA.
3
The Interest Coverage Ratio is calculated as ASUR’s EBIT divided by its interest expenses.
4
The Total Net Debt is calculated as Total Debt minus Cash & Cash Equivalents.
Table 6: Consolidated Debt Profile
(in millions)
|
|
|
|
|
|
|
|
|
|
|
Airport
|
Payment of principal
|
Currency
|
Interest Rate
|
Amortization Schedule
|
|
2018
|
2019
|
2020
|
2021 /23
|
2024 /35
|
Total
|
5 Yr-Syndicated Credit Facility
|
Cancun
|
To the expiration
|
$Usd
|
Libor + 1.5250%
|
-
|
-
|
-
|
-
|
36.3
|
36.3
|
5 Yr-Syndicated Credit Facility
|
Cancun
|
To the expiration
|
$Usd
|
Libor + 1.4500%
|
-
|
-
|
-
|
-
|
36.3
|
36.3
|
5 Yr-Syndicated Credit Facility
|
Cancun
|
To the expiration
|
$PMx
|
Tiie + 1.25%
|
-
|
-
|
-
|
2,000.0
|
-
|
2,000.0
|
7 Yr-Syndicated Credit Facility
|
Cancun
|
Semi-Annual Amort.
|
$PMx
|
Tiie + 1.25%
|
-
|
-
|
20.0
|
1,860.0
|
120.0
|
2,000.0
|
22 Yr-Senior Note 2035
|
San Juan
|
Semi-Annual Amort.
|
$Usd
|
5.75%
|
-
|
5.2
|
5.3
|
17.1
|
162.9
|
190.5
|
20 Yr-Senior Note 2035
|
San Juan
|
Semi-Annual Amort.
|
$Usd
|
6.75%
|
5.1
|
5.2
|
5.3
|
18.3
|
153.8
|
187.7
|
10 Yr-Syndicated Credit Facility
|
Colombia
|
Qtly. Amort.
|
$Pcol
|
DTF1 + 4
|
1,875.0
|
9,000.0
|
12,000.0
|
44,250.0
|
81,000.0
|
148,125.0
|
10 Yr-Syndicated Credit Facility
|
Colombia
|
Qtly. Amort.
|
$Pcol
|
DTF1 + 4
|
1,275.0
|
6,120.0
|
8,160.0
|
30,090.0
|
55,080.0
|
100,725.0
|
10 Yr-Syndicated Credit Facility
|
Colombia
|
Qtly. Amort.
|
$Pcol
|
DTF1 + 4
|
1,125.0
|
5,400.0
|
7,200.0
|
26,550.0
|
48,600.0
|
88,875.0
|
10 Yr-Syndicated Credit Facility
|
Colombia
|
Qtly. Amort.
|
$Pcol
|
DTF1 + 4
|
462.5
|
2,220.0
|
2,960.0
|
10,915.0
|
19,980.0
|
36,537.5
|
10 Yr-Syndicated Credit Facility
|
Colombia
|
Qtly. Amort.
|
$Pcol
|
DTF1 + 4
|
462.5
|
2,220.0
|
2,960.0
|
10,915.0
|
19,980.0
|
36,537.5
|
10 Yr-Syndicated Credit Facility
|
Colombia
|
Qtly. Amort.
|
$Pcol
|
DTF1 + 4
|
100.0
|
480.0
|
640.0
|
2,360.0
|
4,320.0
|
7,900.0
|
10 Yr-Syndicated Credit Facility
|
Colombia
|
Qtly. Amort.
|
$Pcol
|
DTF1 + 4
|
100.0
|
480.0
|
640.0
|
2,360.0
|
4,320.0
|
7,900.0
|
10 Yr-Syndicated Credit Facility
|
Colombia
|
Qtly. Amort.
|
$Pcol
|
DTF1 + 4
|
100.0
|
480.0
|
640.0
|
2,360.0
|
4,320.0
|
7,900.0
|
|
1
DTF is an average 90-day rate with which the credits in Colombia are subscribed
|
2
IBR is a rate that banks offer for short-term bank loans
|
Capex
During 3Q18, ASUR made capital investments
of Ps.1,369.8 million. Of this, Ps.329.6 million relate to the Company’s plan to modernize its Mexican airports pursuant
to its master development plans, mainly for the construction of Cancun’s Terminal 4, currently in operation. Furthermore,
during 3Q18, Aerostar invested Ps.646.0 million at LMM Airport in Puerto Rico and Airplan invested a total of Ps.394.2 million
in Colombia.
Review of Mexico Operations
Table 7: Mexico Revenues & Commercial Revenues Per Passenger
|
|
Third Quarter
|
% Chg.
|
|
Nine-Months
|
% Chg.
|
|
2017
|
2018
|
|
2017
|
2018
|
Total Passenger
|
7,825
|
8,333
|
6.5
|
|
23,664
|
25,263
|
6.8
|
|
|
|
|
|
|
|
|
Total Revenues
|
2,606,720
|
2,585,641
|
(0.8)
|
|
7,796,657
|
7,762,541
|
(0.4)
|
Aeronautical Services
|
1,316,489
|
1,495,944
|
13.6
|
|
4,021,915
|
4,483,133
|
11.5
|
Non-Aeronautical Services
|
880,673
|
997,370
|
13.3
|
|
2,830,593
|
3,154,213
|
11.4
|
Construction Revenues
|
409,558
|
92,327
|
(77.5)
|
|
944,149
|
125,195
|
(86.7)
|
Total Revenues Excluding Construction Revenues
|
2,197,162
|
2,493,314
|
13.5
|
|
6,852,508
|
7,637,346
|
11.5
|
|
|
|
|
|
|
|
|
Total Commercial Revenues
|
786,531
|
900,884
|
14.5
|
|
2,547,209
|
2,843,468
|
11.6
|
Commercial Revenues from Direct Operations
|
144,495
|
183,285
|
26.8
|
|
439,797
|
568,518
|
29.3
|
Commercial Revenues Excluding Direct Operations
|
642,036
|
717,599
|
11.8
|
|
2,107,412
|
2,274,950
|
7.9
|
|
|
|
|
|
|
|
|
Total Commercial Revenues per Passenger
|
100.5
|
108.1
|
7.6
|
|
107.6
|
112.6
|
4.6
|
Commercial Revenues from Direct Operations per Passenger
1
|
18.5
|
22.0
|
19.1
|
|
18.6
|
22.5
|
21.1
|
Commercial Revenues Excl. Direct Operations per Passenger
|
82.1
|
86.1
|
5.0
|
|
89.1
|
90.1
|
1.1
|
|
|
|
|
|
|
|
|
Note: For purposes of this table,
approximately 42.1 and 29.0 thousand transit and general aviation passengers are included in 3Q17 and 3Q18, respectively, and 133.8
and 105.0 thousand transit and general aviation passengers are included in 9M17 and 9M18.
1
Represents ASUR’s operation of convenience
stores in airports as well as advertising since September 2017.
|
|
ASUR 3Q18 Page 7 of 25
|
|
|
|
|
|
|
|
|
Mexico Revenues
Mexico Revenues
for 3Q18 declined 0.8%
YoY to Ps.2,585.6 million. Excluding construction, revenues rose 13.5% YoY, reflecting the following increases:
|
·
|
13.6% in revenues from
aeronautical services, mainly due to the 6.7% increase in passenger traffic; and
|
|
·
|
13.3% in revenues from
non-aeronautical services, principally reflecting the 14.5% growth in commercial revenues.
|
Commercial Revenues
rose 14.5% YoY,
mainly due to the 6.5% increase in total passenger traffic (including transit and general aviation passengers) and reported increases
across all categories as shown on Table 8.
Commercial Revenues per Passenger
, were
up 7.6% to Ps.108.1 in 3Q18 from Ps.100.5 in 3Q17.
ASUR classifies commercial revenues as those
derived from the following activities: duty-free stores, car rentals, retail operations, banking and currency exchange services,
advertising, teleservices, non-permanent ground transportation, food and beverage operations and parking lot fees.
As shown in Table 9, during the last 12 months,
ASUR opened 83 new commercial spaces reflecting the opening of its new Terminal 4 at Cancun Airport and added seven commercial
spaces at its other eight airports. More details of these openings can be found on page 20 of this report.
Table 8: Mexico Commercial Revenue Performance
|
|
|
Table 9: Mexico Summary Retail and Other Commercial Space Opened since September 30,2017
|
Business Line
|
YoY Chg
|
|
Type of Commercial Space
1
|
# Of Spaces Opened
|
3Q18
|
9M18
|
|
Other Revenue
|
21.2%
|
16.5%
|
|
Cancun
|
76
|
Car Rental Revenues
|
19.6%
|
12.9%
|
|
Retail
|
28
|
Ground Transportation
|
18.6%
|
9.3%
|
|
Car Rental
|
20
|
Parking Lot Fees
|
18.4%
|
13.6%
|
|
Transportation
|
4
|
Retail Operations
|
16.1%
|
16.1%
|
|
Food and Beverage
|
18
|
Duty Free
|
12.6%
|
10.9%
|
|
Other Revenue
|
3
|
Food and Beverage Operations
|
10.6%
|
9.5%
|
|
Banking and Currency Exchange Services
|
2
|
Banking and Currency Exchange Services
|
9.4%
|
3.2%
|
|
Duty free
|
1
|
Advertising Revenues
|
9.4%
|
(14.4%)
|
|
8 Other Airports
|
7
|
Teleservices
|
(19.8%)
|
(3.6%)
|
|
Retail
|
4
|
Total Commercial Revenues
|
14.6%
|
11.6%
|
|
Bank and Foreign
|
1
|
|
|
|
|
Car Rental
|
1
|
|
|
|
|
Other Revenue
|
1
|
|
|
|
|
Mexico
|
83
|
|
|
|
|
1
Only includes new stores opened during the period and excludes remodelings or contract renewals.
|
|
Mexico Operating Costs
and Expenses
Table 10: Mexico Operating Costs & Expenses
|
|
|
|
|
|
|
|
|
Third Quarter
|
% Chg.
|
|
Nine-Months
|
% Chg.
|
|
2017
|
2018
|
|
2017
|
2018
|
Cost of Services
|
417,576
|
483,261
|
15.7
|
|
1,145,691
|
1,328,522
|
16.0
|
Administrative
|
49,832
|
56,436
|
13.3
|
|
158,526
|
173,738
|
9.6
|
Technical Assistance
|
82,489
|
92,038
|
11.6
|
|
263,083
|
289,607
|
10.1
|
Concession Fees
|
100,097
|
113,389
|
13.3
|
|
308,901
|
344,895
|
11.7
|
Depreciation and Amortization
|
139,248
|
169,226
|
21.5
|
|
417,192
|
506,298
|
21.4
|
Operating Costs and Expenses Excluding Construction Costs
|
789,242
|
914,350
|
15.9
|
|
2,293,393
|
2,643,060
|
15.2
|
Construction Costs
|
409,558
|
92,327
|
(77.5)
|
|
944,149
|
125,195
|
(86.7)
|
Total Operating Costs & Expenses
|
1,198,800
|
1,006,677
|
(16.0)
|
|
3,237,542
|
2,768,255
|
(14.5)
|
Total
Mexico Operating Costs and Expenses
for 3Q18 declined 16.0% YoY. This includes construction costs, which fell 77.5%, reflecting lower levels of capital improvements
made to concessioned assets during the period. Excluding construction costs, operating costs and expenses increased 15.9% to Ps.914.4
million.
Cost of Services
rose 15.7%, mainly
due to higher maintenance, energy and security expenses. Higher cost of sales from convenience stores directly operated by ASUR,
including those opened at Terminal 4 at Cancun Airport, and professional fees in connection with several projects also contributed
to the increase in cost of services.
Administrative
expenses increased by 13.3% YoY, principally as a result of higher travel expenses, fees to third parties and salaries
.
The 11.6% increase in the
Technical Assistance
fee paid to ITA reflects EBITDA growth in Mexico, excluding extraordinary items in the quarter, a factor in the calculation of
the fee.
Concession Fees
, which include fees
paid to the Mexican government, rose 13.3%, mainly due to an increase in regulated revenues, a factor in the calculation of the
fee.
Depreciation and Amortization
increased
21.5% YoY, reflecting the recognition of higher investments at year-end 2017.
Mexico Consolidated Comprehensive
Financing Gain (Loss)
Table 11: Mexico Comprehensive Financing Gain (Loss)
|
|
Third Quarter
|
% Chg.
|
|
Nine-Months
|
% Chg.
|
|
2017
|
2018
|
|
2017
|
2018
|
Interest Income
|
64,522
|
70,836
|
9.8
|
|
180,087
|
251,529
|
39.7
|
Interest Expense
|
(93,113)
|
(114,677)
|
23.2
|
|
(169,689)
|
(351,684)
|
107.3
|
Foreign Exchange Gain (Loss), Net
|
49,226
|
(39,479)
|
n/a
|
|
50,524
|
32,906
|
(34.9)
|
Total
|
20,635
|
(83,320)
|
n/a
|
|
60,922
|
(67,249)
|
n/a
|
In 3Q18, ASUR’s Mexico operations reported
an Ps.83.3 million
Comprehensive Financing Loss
, compared to a Ps.20.6 million gain in 3Q17. This was mainly due to Ps.39.5
million foreign exchange loss reported in the quarter, resulting from the 3.8% quarterly average Mexican peso appreciation against
the U.S. dollar on ASUR’s foreign currency net asset position, compared with a Ps.49.2 million foreign exchange gain in 3Q17,
resulting from the 1.8% quarterly average Mexican peso appreciation during that period. The 23.2% increase in interest expenses
to Ps.114.7 million in 3Q18, from 93.1 million in 3Q17 also contributed to the comprehensive financial loss.
This was partially offset by the 9.8% YoY increase
in interest income to Ps.70.8 million in 3Q18, reflecting a higher cash balance and higher interest rates.
Mexico Operating Profit
and EBITDA
|
|
Table 12: Mexico Operating Profit & EBITDA
|
|
|
|
|
|
|
|
|
Third Quarter
|
% Chg.
|
|
Nine-Months
|
% Chg.
|
|
2017
|
2018
|
|
2017
|
2018
|
Total Revenue
|
2,606,720
|
2,585,641
|
(0.8)
|
|
7,796,657
|
7,762,541
|
(0.4)
|
Total Revenues Excluding Construction Revenues
|
2,197,162
|
2,493,314
|
13.5
|
|
6,852,508
|
7,637,346
|
11.5
|
Operating Profit
|
1,407,920
|
1,578,964
|
12.1
|
|
4,559,115
|
4,994,286
|
9.5
|
Operating Margin
|
54.01%
|
61.07%
|
706 bps
|
|
58.5%
|
64.3%
|
586 bps
|
Adjusted Operating Margin
1
|
64.08%
|
63.33%
|
(75 bps)
|
|
66.5%
|
65.4%
|
(114 bps)
|
Net Profit
3
|
1,100,696
|
1,072,267
|
(2.6)
|
|
3,363,112
|
3,525,768
|
4.8
|
EBITDA
|
1,567,176
|
1,748,064
|
11.5
|
|
4,996,339
|
5,500,592
|
10.1
|
EBITDA Margin
|
60.1%
|
67.6%
|
749 bps
|
|
64.1%
|
70.9%
|
678 bps
|
Adjusted EBITDA Margin
2
|
71.3%
|
70.1%
|
(122 bps)
|
|
72.9%
|
72.0%
|
(89 bps)
|
|
|
|
|
|
|
|
|
1
Adjusted Operating Margin excludes the effect of IFRIC
12 with respect to the construction of or improvements to concessioned assets and is equal to operating profit divided by total
revenues excluding construction services revenues.
2
Adjusted EBITDA Margin excludes the effect of IFRIC
12 with respect to the construction of or improvements to concessioned assets and is calculated by dividing EBITDA by total revenues
excluding construction services revenues.
3
Net Income for 3Q18 includes a
gain of Ps.112.4 million from the participation in the results of subsidiaries recognized under the equity method. Aerostar in
Puerto Rico contributed with a Ps.115.5 million gain and Airplan in Colombia with a Ps.3.1 million loss
|
ASUR 3Q18 Page 9 of 25
|
|
|
|
|
|
|
|
Mexico reported an
Operating Profit
of
Ps.1,579.0 million in 3Q18, up 12.1%, mainly reflecting increases of 13.6% in aeronautical revenues and 14.5% in commercial revenues
derived from the 6.5% growth in passenger traffic. Operating Margin was 61.1% in 3Q18 compared with 54.0% in 3Q17.
Adjusted Operating Margin
in 3Q18, which
excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets and is calculated as operating
profit divided by total revenues excluding construction services revenues, was 63.3%, compared to 64.1% in 3Q17.
EBITDA
increased 11.5% to Ps.1,748.1
million from Ps.1,567.2 million in 3Q17, as a result of higher operating leverage. EBITDA Margin expanded to 67.6% from 60.1% in
3Q17.
During 3Q18, ASUR’s operations in Mexico
recognized Ps.92.3 million in “Construction Revenues,” a year-on-year decline of 77.5%, due to lower capital expenditures
and investments in concessioned assets.
Adjusted EBITDA Margin
, which excludes the effect of IFRIC 12 with respect to the
construction of/or improvements to concessioned assets, decreased by 122 bps to 70.1%.
Mexico 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 accumulated regulated revenues
at its Mexican operations as of September 30, 2018 totaled Ps.4,573.5 million, with an average tariff per workload unit of Ps.178.26
(December 2016 pesos), accounting for approximately 61.6% of total Mexico income (excluding construction income) for the period.
The Mexican
Ministry of Communications and Transportation reviews compliance with maximum rate regulations at the close of each year.
In August 2018, our subsidiary Aeropuerto de
Cancun, S.A. de C.V., was notified of an Opinion of Probable Liability issued by the head of the Investigative Branch of the Federal
Economic Competition Commission ("COFECE"), for alleged monopolistic practices at Cancun International Airport regarding
on-site ground transportation. This notification serves to subpoena Aeropuerto de Cancun, S.A. de C.V. to appear in the administrative
proceedings to be held in the form of hearings before COFECE. In October, Aeropuerto de Cancún, S.A. de C.V. replied in
a timely manner with respect to the aforementioned Opinion of Probable Liability and expects to exhaust all legal remedies in the
defense of its interests. Given the stage of the procedure, it is not possible at this time to estimate the potential penalty,
if any, that COFECE could impose.
Review
of Puerto Rico Operations
In May 2017, ASUR increased its share ownership
in Aerostar to 60% from its prior 50% ownership. Accordingly, consolidated results as presented in this report reflect line by
line consolidation of Aerostar results starting in June 1, 2017, while prior to that, Aerostar’s results were accounted for
by the equity method.
The following discussion compares the standalone
results of Aerostar for the three-month period ended September 30, 2018 (in which Aerostar was consolidated with ASUR) against
the three-month period ended September 30, 2017.
As of September 30, 2018, the valuation of
ASUR’s investment in Aerostar in accordance with IFRS 3 "Business Combinations" resulted in the following effects
in the Balance Sheet: i) the recognition of a net intangible asset of Ps.5,876.1 million, ii) goodwill of Ps.887.2 (net of an impairment
of Ps.4,719.1 million), iii) deferred taxes of Ps.587.6 million, and iv) a minority interest of Ps.5,316.7 million within stockholders
'equity.
Table 13: Puerto Rico Revenues & Commercial Revenues Per Passenger (in thousands of Mexican pesos)
|
|
|
Third Quarter
|
% Chg.
|
|
|
2017
|
2018
|
|
Total Passengers
|
2,145
|
2,227
|
3.8
|
|
|
|
|
|
|
Total Revenues
|
623,384
|
692,466
|
11.1
|
|
Aeronautical Services
|
415,979
|
433,814
|
4.3
|
|
Non-Aeronautical Services
|
207,405
|
242,769
|
17.1
|
|
Construction Services
|
-
|
15,883
|
n/a
|
|
Total Revenues Excluding Construction Services
|
623,384
|
676,583
|
8.5
|
|
|
|
|
|
|
Total Commercial Revenues
|
205,680
|
240,567
|
17.0
|
|
Commercial Revenues from Direct Operations
2
|
47,757
|
50,183
|
5.1
|
|
Commercial Revenues Excluding Direct Operations
|
157,923
|
190,384
|
20.6
|
|
Total Commercial Revenues per Passenger
|
95.90
|
108.0
|
12.7
|
|
Commercial Revenues from Direct Operations per Passenger
2
|
22.3
|
22.5
|
1.2
|
|
Commercial Revenues Excl. Direct Operations per Passenger
|
73.6
|
85.5
|
16.1
|
|
Note: Figures in pesos at an average exchange rate of Ps.18.9523.
|
|
|
|
2
Represents ASUR’s operation of convenience stores
in LMM Airport.
|
|
|
|
Puerto Rico Revenues
Total Puerto Rico Revenues
for 3Q18
increased 11.1% YoY to Ps.692.5 million, mainly due to the following increases:
|
·
|
17.1% in revenues from
non-aeronautical services, principally reflecting the 17.0% increase in commercial revenues; and
|
|
·
|
4.3% in revenues from
aeronautical services.
|
Commercial Revenues per Passenger
rose
to Ps.108.0 from Ps.95.9 in 3Q17.
Five commercial spaces were opened at LMM Airport
over the last 12 months, as shown on Table 15. More details of these openings can be found on page 21 of this report.
ASUR classifies commercial revenues as those
derived from the following activities: duty-free stores, car rentals, retail operations, advertising, non-permanent ground transportation,
food and beverage operations and parking lot fees.
Table 14: San Juan Airport Commercial Revenue Performance
|
Table 15: San Juan Airport Summary Retail and Other Commercial Space Opened since September 30, 2017
|
Business Line
|
YoY Chg
|
|
Type of Commercial Space
1
|
# of Spaces Opened
|
3Q18
|
|
Ground Transportation
|
173.8%
|
|
Food and Beverage
|
3
|
Advertising Revenues
|
49.1%
|
|
Other Revenue
|
2
|
Car Rental Revenues
|
31.1%
|
|
Total Commercial Spaces
|
5
|
Parking Lot Fees
|
24.9%
|
|
|
Other Revenue
|
11.1%
|
|
|
|
Duty Free
|
4.5%
|
|
|
|
Retail Operations
|
3.8%
|
|
|
|
Food and Beverage Operations
|
1.5%
|
|
|
|
Total Commercial Revenues
|
17.0%
|
|
|
|
|
|
|
1
Only includes new stores opened during the period and excludes remodelings or contract renewals.
|
Puerto Rico Operating
Costs and Expenses
Table 16: Puerto Rico Operating Costs and Expenses
|
|
|
(in thousands of Mexican pesos)
|
|
|
|
|
Third Quarter
|
% Chg.
|
|
2017
|
2018
|
Cost of Services
|
271,456
|
313,962
|
15.7
|
Concession Fees
|
2,500
|
32,028
|
1,181.3
|
Depreciation and Amortization
|
101,737
|
150,253
|
47.7
|
Total Operating Costs & Expenses Excluding Construction Costs
|
375,693
|
496,243
|
32.1
|
Construction Costs
|
-
|
15,883
|
n/a
|
Total Operating Costs & Expenses
|
375,693
|
512,126
|
36.3
|
Note: Figures in pesos at an average exchange rate of Ps.18.9523.
|
|
|
|
Total
Operating Costs and Expenses
at
LMM Airport in 3Q18, including construction costs, rose 36.3% YoY to Ps.512.1 million.
Cost of Services
increased 15.7% YoY,
mainly due to the recognition of extraordinary insurance costs resulting from Hurricane Maria, as well as higher energy and maintenance
expenses. In accordance with the application of IFRIC 12, Aerostar recognizes on a monthly basis the provision for maintenance
of those concession assets that will be replaced before the end of the concession. The monthly amount is Ps.18.4 million.
Concession Fees paid to the Puerto Rican government
increased YoY by Ps.29.5 million. In 2017, the concession fee was a fixed payment of US$2.5 million, reported within intangible
assets (Concession), while in 2018, the concession fee is 5% of revenues for the period. In addition, starting in 2018, the concession
fee line item also includes the municipal tax, which increased 10% to Ps.2.7 million from Ps.2.5 million in the prior period.
Depreciation and Amortization
rose 47.7%,
mainly impacted by the recognition of the amortization from the valuation of the investment in Aerostar under IFRS 3, which impacted
amortization by Ps.42.7 million.
During 3Q18, Aerostar reported Construction
Costs in Puerto Rico of Ps.15.9 million, reflecting the capital investments in the concessioned assets during the period.
Excluding construction costs, operating costs and expenses increased
32.1% to Ps.496.2 million.
Puerto Rico Comprehensive
Financing Gain (Loss)
Table 17: Puerto Rico Comprehensive
Financing Gain
(in thousands of Mexican pesos)
|
|
Third Quarter
|
% Chg.
|
|
2017
|
2018
|
Interest Income
|
18
|
3,809
|
21,061.1
|
Interest Expense
|
(123,490)
|
(127,533)
|
3.3
|
Total
|
(123,472)
|
(123,724)
|
0.2
|
Note: Figures in pesos at an average exchange rate of Ps.18.9523.
|
|
|
|
|
During 3Q18, LMM Airport reported a Ps.123.7
million
Comprehensive Financing Loss
, compared with a Ps.123.5 million loss in 3Q17.
On February 22, 2013, and as part of the financing
of the Concession Agreement, Aerostar entered into a subordinated term loan with Cancun Airport in the amount of US$100 million
at an annual interest rate of LIBOR plus 2.10%, payable each July 1 and January 1, and with no fixed maturity date. As of September
30, 2018, the remaining balance was US$63.4 million.
On March 22, 2013, Aerostar carried out a private
bond placement for a total of US$350 million to finance a portion of the Concession Agreement payment to the Puerto Rican Ports
Authority and certain other costs and expenditures associated with it.
On June 24, 2015, Aerostar carried out a private
bond placement for a total of US$50 million. In December 2015, Aerostar also contracted a line of revolving credit, which, as of
September 30, 2018, had not been utilized.
All long-term debt is collateralized by Aerostar’s
total assets.
Puerto Rico Operating Profit and EBITDA
|
Table 18: San Juan Airport Operating Profit & EBITDA
|
|
|
|
|
(in thousands of Mexican pesos)
|
|
|
|
|
|
Third Quarter
|
% Chg.
|
|
|
2017
|
2018
|
|
Total Revenues
|
623,384
|
692,466
|
11.1
|
|
Total Revenues Excluding Construction Services Revenues
|
623,384
|
676,583
|
8.5
|
|
Operating Profit
|
247,691
|
180,340
|
(27.2)
|
|
Operating Margin
|
39.7%
|
26.0%
|
(1369 bps)
|
|
Adjusted Operating Margin
1
|
39.7%
|
26.7%
|
(1308 bps)
|
|
Net Income
|
112,295
|
46,300
|
(58.8)
|
|
EBITDA
|
349,428
|
329,682
|
(5.7)
|
|
EBITDA Margin
|
56.1%
|
47.6%
|
(844 bps)
|
|
Adjusted EBITDA Margin
2
|
56.1%
|
48.7%
|
(733 bps)
|
Note: Figures in pesos at an average exchange rate of Ps.18.9523.
|
|
|
|
|
1
Adjusted Operating Margin excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets and is equal to operating profit divided by total revenues excluding construction services revenues.
2
Adjusted
EBITDA Margin excludes the effect of IFRIC 12 with respect to the construction or improvements
to concessioned assets and is calculated by dividing EBITDA by total revenues excluding
construction services revenues.
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
at Puerto Rico in 3Q18
declined 27.2% YoY to Ps.180.3 million, with
Operating Margin
down to 26.0% from 39.7% in 3Q17, principally due to the amortization
resulting from the valuation of Aerostar under IFRS3, which impacted amortization by Ps.42.7 million as explained above.
EBITDA
declined 5.7% to Ps.329.7 million
from Ps.349.4 million in 3Q17, and EBITDA Margin declined to 47.6% in 3Q18 from 56.1% in 3Q17. Adjusted EBITDA Margin in 3Q18 was
48.7% compared with 56.1% in 3Q17.
Puerto Rico Capital Expenditures
During 3Q18, Aerostar invested Ps.645.9 million
to modernize LMM Airport, mainly for the construction of the Federal Inspection Station and in equipment for LMM’s operations.
This compares with investments of Ps.58.8 million in 3Q17.
Puerto Rico Tariff Regulation
The Airport Use Agreement signed by Aerostar,
the airlines serving LMM Airport and the Puerto Rico Ports Authority governs the relationship between Aerostar and the principal
airlines serving LMM Airport. The agreement entitles Aerostar to an annual contribution from the airlines of US$62 million during
the first five years of the term. From year six onwards, the total annual contribution for the prior year increases in accordance
with an adjusted consumer price index factor based on the U.S. non-core consumer price index. The annual fee is divided between
the airlines that operate at LMM Airport in accordance with the regulations and structure defined under the Airport Use Agreement
to establish the contribution of each airline for each particular year.
Review
of Colombia Operations
On October 19, 2017, ASUR acquired a 92.42%
ownership stake in Airplan, which operates six airports in Colombia. Therefore, ASUR began to consolidate Airplan’s results
on a line by line basis as of that date.
The following discussion compares Airplan's
independent results for the started July 1 and ended September 30, 2018 (in which Airplan was consolidated with ASUR) against the
period starting July 1 and ended September 30, 2017 (in which Airplan was not consolidated with ASUR).
The valuation of ASUR’s investment in
Airplan in accordance with IFRS 3 "Business Combinations" resulted in the following effects on the Balance Sheet as of
September 30, 2018: i) the recognition of a net intangible asset of Ps.1,364.2 million, ii) goodwill of Ps.1,504.9, iii) deferred
taxes of Ps.257.0 million, and iv) Ps.610.4 million from the recognition of bank loans at fair value.
On May 25, 2018, ASUR acquired 7.58% of the
share ownership of Airplan, bringing its ownership stake in the company to 100%. This transaction resulted in the recognition of
Shareholders’ Equity in excess of the Ps.46.3 million paid for the acquisition of this additional stake in Airplan.
Table 19: Airplan, Colombia Revenues & Commercial Revenues Per Passenger
|
In thousands of Mexican pesos
|
|
|
|
|
Third Quarter
|
% Chg
|
|
2017
|
2018
|
|
Not Consolidated
|
Consolidated
|
Total Passenger
|
2,687
|
2,872
|
6.9
|
|
|
|
|
Total Revenues
|
625,669
|
403,940
|
(35.4)
|
Aeronautical Services
|
276,541
|
321,357
|
16.2
|
Non-Aeronautical Services
|
78,358
|
100,476
|
28.2
|
Construction Revenues
1
|
270,770
|
(17,893)
|
n/a
|
Total Revenues Excluding Construction Revenues
|
354,899
|
421,833
|
18.9
|
Total Commercial Revenues
|
78,347
|
100,467
|
28.2
|
Total Commercial Revenues per Passenger
|
29.2
|
35.0
|
20.0
|
Note: Figures in pesos at an average exchange rate of Ps.156.2203.
Note: For purpose of this table, approximately 76.0 and 71.4 thousand
transit and general aviation passengers are included in 3Q17 and 3Q18.
1
Construction
revenues for Airplan in 3Q18 include the actual construction revenues which are equal to construction costs of Ps.63.1 million
plus an estimated revenue decline from valuation of the intangible asset at its present value (guaranteed revenues from the concession),
of Ps. 80.9 million according to IFRIC 12
Colombia Revenues
Total Colombia Revenues
for 3Q18 fell
35.4% YoY to Ps.403.9 million. Excluding construction services revenues, which fell as a result of lower committed investments
during the period and the impact from the valuation of the concession at present value, revenues rose 18.9% mainly reflecting the
following increases:
|
·
|
16.2% in revenues from
aeronautical services.
|
|
·
|
28.2% in revenues from
non-aeronautical services, mainly due to the 28.2% increase in commercial revenues.
|
Commercial Revenues per Passenger
increased
20.0%, principally benefitting from fixed commercial revenues.
As shown on Table 21, during the last twelve
months, 40 new commercial spaces were opened in Colombia. More details of these openings can be found on page 21 of this report.
ASUR classifies commercial revenues as those derived from the following
activities: duty-free stores, car rentals, retail operations, advertising, non-permanent ground transportation, food and beverage
operations and parking lot fees.
Table 20: Airplan, Colombia Commercial Revenue Performance
|
|
|
Table 21: Colombia Summary Retail and Other Commercial Space Opened since September 30, 2017
|
Business Line
|
YoY Chg
|
|
Type of Commercial Space
1
|
# of Spaces Opened
|
3Q18
|
|
Retail Operations
|
139.5%
|
|
Food and Beverage
|
7
|
Teleservices
|
126.8%
|
|
Retail
|
5
|
Car Rental Revenues
|
83.2%
|
|
Car Rental
|
2
|
Banking and Currency Exchange Services
|
64.0%
|
|
Banking and Currency Exchange Services
|
3
|
Other Revenue
|
30.7%
|
|
Teleservices
|
1
|
Parking Lot Fees
|
13.8%
|
|
Other Revenue
|
22
|
Advertising Revenues
|
11.5%
|
|
Total Commercial Spaces
|
40
|
Food and Beverage Operations
|
9.7%
|
|
|
|
Ground Transportation
|
(5.9%)
|
|
|
|
Duty Free
|
(100.0%)
|
|
|
|
Total Commercial Revenues
|
28.2%
|
|
|
|
|
|
|
1
Only includes new stores opened during the period and excludes remodelings or contract renewals.
|
Colombia Costs and Expenses
Table 22: Colombia Operating
Costs and Expenses
(in thousands of Mexican pesos)
|
|
Third Quarter
|
% Chg.
|
|
|
2017
Non-Consolidated
|
2018 Consolidated
|
|
Cost of Services
|
104,420
|
139,774
|
33.9
|
|
Technical Assistance
|
1,532
|
1,598
|
4.3
|
|
Concession Fees
|
67,431
|
79,887
|
18.5
|
|
Depreciation and Amortization
|
117,620
|
222,375
|
89.1
|
|
Operating Costs and Expenses Excluding Construction Costs
|
291,003
|
443,634
|
52.4
|
|
Construction Costs
|
279,408
|
63,075
|
(77.4)
|
|
Total Operating Costs & Expenses
|
570,411
|
506,709
|
(11.2)
|
|
Note: Figures in pesos at an average exchange rate of Ps.156.2203.
|
|
|
|
|
Total
Operating Costs and Expenses
in
Colombia declined 11.2% YoY in 3Q18 to Ps.506.7 million.
Cost of Services
increased 33.9% YoY,
mainly due to higher expenses in connection with professional fees, security expenses, energy and maintenance costs.
Construction Costs
declined 77.4% YoY
to Ps.63.1 million, reflecting lower investments in complementary works to concessioned assets during the period.
Concession Fees
, which include fees
paid to the Colombian government, increased 18.5% YoY, mainly reflecting higher regulated and non-regulated revenues during the
period.
Depreciation and Amortization
increased
89.1% due to the Ps.222.4 million increase in amortization of the concession (includes recognition of Ps.23.9 million from the
amortization of the concession resulting from the valuation of the investment under IFRS 3, Ps.133.9 million for initial amortization
of complementary works, and Ps.64.6 million in amortization of mandatory works as a result of the increase in the accumulated amortization).
Colombia Comprehensive Financing Gain /(Loss)
Table 23: Colombia Comprehensive
Financing Gain / (Loss)
(in thousands of Mexican pesos)
|
|
Third Quarter
|
% Chg.
|
|
|
2017
Non-Consolidated
|
2018 Consolidated
|
|
Interest Income
|
790
|
1,760
|
122.8
|
|
Interest Expense
|
(46,223)
|
(74,978)
|
62.2
|
|
Foreign Exchange Gain (Loss), Net
|
(36)
|
(13)
|
(63.9)
|
|
Total
|
(45,469)
|
(73,231)
|
61.1
|
|
Note: Figures in pesos at an average exchange rate of Ps.156.2203.
ASUR 3Q18 Page 15 of 25
|
|
|
|
|
During 3Q18, Airplan reported a Ps.73.2 million
Comprehensive Financing Loss
, compared with a Ps.45.5 million loss in 3Q17.
On June 1, 2015, Airplan entered into a Ps.3,468.7
million, 12-Year Syndicated Loan Facility with eight banks with a 3-year grace period. Airplan also has a Ps.130.0 million, one-year
Treasury Loan from two banks.
Colombia Operating Profit
and EBITDA
Table 24: Colombia Operating
Profit & EBITDA
(in thousands of Mexican
pesos)
|
|
|
|
|
Third Quarter
|
% Chg.
|
|
|
2017
Non-Consolidated
|
2018 Consolidated
|
|
Total Revenue
|
625,669
|
403,940
|
(35.4)
|
|
Total Revenues Excluding Construction Revenues
|
354,899
|
421,833
|
18.9
|
|
Operating Profit
|
55,258
|
(102,769)
|
n/a
|
|
Operating Margin
|
8.8%
|
(25.4%)
|
(3427 bps)
|
|
Adjusted Operating Margin
1
|
15.6%
|
(24.4%)
|
(3993 bps)
|
|
Net Income
|
7,168
|
(111,993)
|
n/a
|
|
EBITDA
|
181,516
|
200,574
|
10.5
|
|
EBITDA Margin
|
29.0%
|
49.7%
|
2064 bps
|
|
Adjusted EBITDA Margin
2
|
51.1%
|
47.5%
|
-360 bps
|
|
Note: Figures in pesos at an average exchange rate of Ps.156.2203.
|
|
|
|
|
|
|
|
|
|
1
Adjusted Operating Margin excludes the effect of IFRIC
12 with respect to the construction or improvements to concessioned assets and is equal to operating profit divided by total revenues
excluding construction services revenues.
2
Adjusted EBITDA Margin excludes the effect of IFRIC
12 with respect to the construction or improvements to concessioned assets and is calculated by dividing EBITDA by total revenues
excluding construction services revenues.
|
|
|
|
|
|
|
|
|
|
During 3Q18, ASUR reported an
Operating
Loss
of Ps.102.8 million compared to an operating profit of Ps.55.3 million in 3Q17. Operating Margin was negative 25.4% in
3Q18 and positive 8.8% in 3Q17. Adjusted Operating Margin, which excludes the impact of IFRIC 12 with respect to construction or
improvements to concessioned assets, was negative 24.4% in 3Q18 compared with positive 15.6% in the same quarter of 2017.
EBITDA
increased 10.5% to Ps.200.6 million
from Ps.181.5 million in 3Q17. EBITDA Margin increased to 49.7% in 3Q18, from 29.0% in 3Q17, while Adjusted EBITDA Margin, which
excludes the impact of IFRIC 12 with respect to construction or improvements to concessioned assets, declined 360 basis points
to 47.5 % in 3Q18.
Colombia Capex
During 3Q18, Airplan invested Ps.394.2 million
to modernize its airports in Colombia, including: i) the expansion of the domestic and international passenger terminal, ii) the
expansion of the international platform, and iii) progress in the construction of the cargo terminal at Rionegro airport.
Colombia Tariff Regulation
Functions of the Special Administrative Unit
of Civil Aeronautics include establishing and collecting fees, tariffs and rights for the provision of aeronautical and airport
services or those that are generated by the concessions, authorizations, licenses or any other type of income or property. As a
result, Resolution 04530, issued on September 21, 2007, establishes the tariffs for the rights and the rates conceded to the concessionaire
of the following airports: José María Córdova of Rionegro, Enrique Olaya Herrera of Medellín, Los Garzones
of Montería, El Caraño of Quibdó, Antonio Roldán Betancourt de Carapa, and Las Brujas of Corozal. This
resolution also established the methodology to update and the mechanisms to collect such fees, tariffs, and rights.
Airplan's regulated revenues for 3Q18 amounted
to Ps.321.4 million.
ASUR 3Q18 Page 16 of 25
Concession Services Agreements (IFRIC 12
interpretation).
In Mexico and Puerto Rico, ASUR is required by IFRIC 12 to include in its income statement an income line,
“Construction Revenues,” reflecting the revenue from construction or improvements to concessioned assets made during
the relevant period. 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 Revenues and Construction Costs have been
included in ASUR's income statement as a result of the application of IFRIC 12, the amount of Construction Revenues does not have
an impact on EBITDA, but it does have an impact on EBITDA Margin. In Colombia, “Construction Revenues” include the
recognition of the revenue to which the concessionaire is entitled for carrying out the infrastructure works in the development
of the concession, while “Construction Costs” represents the actual costs incurred in the execution of such additions
or improvements to the concessioned assets.
Majority Net Income
reflects ASUR’s
equity interests in each of its subsidiaries and therefore excludes the 40% interest in Aerostar that is owned by other shareholders.
Other than Aerostar, ASUR owns (directly or indirectly) 100% of its subsidiaries.
EBITDA
means net income before provision
for taxes, deferred taxes, profit sharing, non-ordinary items, participation in the results of associates, comprehensive financing
cost and depreciation and amortization. EBITDA should not 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. Our management believes that EBITDA provides
a useful measure that is widely used by investors and analysts to evaluate our performance and compare it with other companies.
EBITDA is not defined under U.S. GAAP or IFRS and may be calculated differently by different companies.
Adjusted EBITDA Margin
is calculated
by dividing EBITDA by total revenues excluding construction services revenues for Mexico, Puerto Rico and Colombia and excludes
the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets. ASUR is required by IFRIC 12 to
include in its income statement an income line reflecting the revenue from construction or improvements to concessioned assets
made during the relevant period. The same amount is recognized under the expense line “Construction Costs,” because
ASUR hires third parties to provide construction services. In Mexico and Puerto Rico, because equal amounts of Construction Revenues
and Construction Costs have been included in ASUR's income statement as a result of the application of IFRIC 12, the amount of
Construction Revenues does not have an impact on EBITDA, but it does have an impact on EBITDA Margin, as the increase in revenues
that relates to Construction Revenues does not result in a corresponding increase in EBITDA. In Colombia, construction revenues
do have an impact on EBITDA, as construction revenues include a reasonable margin over the actual cost of construction. Like EBITDA
Margin, Adjusted EBITDA Margin should not be considered as an indicator of our operating performance or as an alternative to cash
flow as an indicator of liquidity and is not defined under U.S. GAAP or IFRS and may be calculated differently by different companies.
About ASUR
Grupo Aeroportuario del Sureste, S.A.B. de
C.V. (ASUR) is a leading international airport operator with a portfolio of concessions to operate, maintain, and develop 16 airports
in the Americas. This comprises nine airports in southeast Mexico, including Cancun Airport, the most important tourist destination
in Mexico, the Caribbean, and Latin America, and six airports in northern Colombia, including José María Córdova
International Airport (Rionegro), the second busiest airport in Colombia. ASUR is also a 60% JV partner in Aerostar Airport Holdings,
LLC, operator of the Luis Muñoz Marín International Airport serving the capital of Puerto Rico, San Juan. San Juan’s
Airport is the island’s primary gateway for international and mainland-US destinations and was the first and currently the
only major airport in the US to have successfully completed a public–private partnership under the FAA Pilot Program. Headquartered
in Mexico, ASUR is listed both on the Mexican Bolsa, where it trades under the symbol ASUR, and on the NYSE in the U.S., where
it trades under the symbol ASR. One ADS represents ten (10) series B shares. ASUR is one of the top four emerging market companies
in the transportation and transportation infrastructure sector included in the Dow Jones Sustainability Emerging Markets Index
(DJSI EM). For more information, visit
www.asur.com.mx
ASUR 3Q18 Page 17 of
25
Analyst Coverage
In accordance with Mexican Stock Exchange Internal
Rules Article 4.033.01, ASUR informs that the stock is covered by the following broker-dealers: Actinver Casa de Bolsa, Barclays,
BBVA Bancomer, BofA Merrill Lynch, BX+, Citi Investment Research, Credit Suisse, Goldman Sachs, Grupo Bursatil Mexicano, Grupo
Financiero Interacciones, Grupo Financiero Monex, HSBC, Intercam Casa de Bolsa, Insight Investment Research, Itau BBA Securities,
INVEX, JP Morgan, Morgan Stanley, Morningstar, Nau Securities, Punto Casa de Bolsa, Santander Investment, Scotia Capital, UBS Casa
de Bolsa and Vector.
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 its management. Although ASUR may refer to or distribute such statements, this does
not imply that ASUR agrees with or endorses any information, conclusions or recommendations included therein.
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.
Contacts:
ASUR
Adolfo Castro
+1-52-55-5284-0408
acastro@asur.com.mx
|
InspIR Group
Susan Borinelli
+1-646-330-5907
susan@inspirgroup.com
|
- SELECTED OPERATING TABLES
& FINANCIAL STATEMENTS FOLLOW –
ASUR
3Q18 Page 18 of 25
ASUR
3Q18 Page 19 of 25
ASUR
3Q18 Page 20 of 25
ASUR
3Q18 Page 21 of 25
ASUR
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ASUR
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ASUR
3Q18 Page 24 of 25
ASUR
3Q18 Page 25 of 25
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.
|
Grupo Aeroportuario del Sureste, S.A.B.
de C.V.
|
|
By:
/s/ ADOLFO CASTRO RIVAS
|
|
|
Adolfo Castro Rivas
|
|
|
Chief
Executive Officer
|
Date:
October 23, 2018
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