U.S. Markets closed

ASUR 4Q16 Passenger Traffic Up 11.91% YOY

MEXICO CITY, Feb. 22, 2017 /PRNewswire/ -- Grupo Aeroportuario del Sureste, S.A.B. de C.V. (NYSE: ASR; BMV: ASUR), (ASUR) the first privatized airport group in Mexico and operator of Cancún Airport and eight other airports in southeast Mexico, as well as a 50% JV partner in Aerostar Airport Holdings, LLC, operator of the Luis Muñoz Marín International Airport in San Juan, Puerto Rico, today announced results for the three- and twelve-month periods ended December 31, 2016.

4Q16 Highlights1:

  • EBITDA2 increased by 18.99% to Ps.1,340.00 million
  • Total passenger traffic was up 11.91%
  • Total revenues increased by 5.90%, reflecting increases of 19.10% in aeronautical revenues and 21.66% in non-aeronautical revenues, partially offset by the 11.35% decline in construction services revenues
  • Commercial revenues per passenger rose by 8.66% to Ps.96.38
  • Operating profit increased by 19.61%
  • EBITDA margin increased to 43.55% from 38.77% in 4Q15
  • Adjusted EBITDA margin3, excluding the effect of IFRIC12, was 70.04% compared with 70.71% in 4Q15
  1. Unless otherwise stated, all financial figures discussed in this announcement are unaudited, prepared in accordance with International Financial Reporting Standards (IFRS) and represent comparisons between the three- and twelve-month periods ended December 31, 2016, and the equivalent three- and twelve-month periods ended December 31, 2015.  Results are expressed in pesos. Tables state figures in thousands of pesos, unless otherwise noted. Passenger figures exclude transit and general aviation passengers. Commercial revenues include revenues from non-permanent ground transportation and parking lots. All U.S. dollar figures are calculated at the exchange rate of US$1.00 = Ps.20.6194
  2. 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.
  3. Adjusted EBITDA Margin excludes the effect of IFRIC12 with respect to the construction or improvements to concessioned assets, as explained in page 5 of this report. Adjusted EBITDA Margin is calculated by dividing EBITDA by total revenues less construction services revenues.   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.

Passenger Traffic

4Q16 total passenger traffic increased year-over-year by 11.91%, reflecting growth of 14.79% in domestic passenger traffic and 9.29% in international passenger traffic.

The 14.79% increase in domestic passenger traffic was driven by the majority of ASUR's airports, with the exception of Cozumel and Minatitlán, where traffic declined by 0.55% and 16.19%, respectively.

The 9.29% growth in international passenger traffic resulted primarily from an increase of 9.44% in traffic at the Cancún airport.

Total passenger traffic for FY16 increased by 8.67%, reflecting growth of 10.86% in domestic passenger traffic driven by the majority of ASUR's airports, with the exception of Minatitlán and Villahermosa, which declined 9.79% and 1.87%, respectively. The 6.90% increase in international passenger traffic resulted primarily from a 7.39% increase at the Cancún airport.

Table I: Domestic Passengers (in thousands)

Airport

4Q15

4Q16

%

Change

FY15

FY16

%

Change

Cancún

1,503.7

1,796.2

19.45

6,027.4

6,844.2

13.55

Cozumel

36.5

36.3

(0.55)

110.1

141.0

28.07

Huatulco

126.6

144.4

14.06

517.2

545.2

5.41

Mérida

427.6

501.0

17.17

1,546.4

1,781.1

15.18

Minatitlán

63.6

53.3

(16.19)

246.1

222.0

(9.79)

Oaxaca

165.7

183.3

10.62

599.6

687.5

14.66

Tapachula

72.4

84.4

16.57

254.8

296.8

16.48

Veracruz

294.2

322.2

9.52

1,166.9

1,242.7

6.50

Villahermosa

316.8

330.9

4.45

1,220.2

1,197.4

(1.87)

TOTAL

3,007.1

3,452.0

14.79

11,688.7

12,957.9

10.86

Note: Passenger figures exclude transit and general aviation passengers.

 

Table II: International Passengers (in thousands)

Airport

4Q15

4Q16

%

Change

FY15

FY16

%

Change

Cancún

3,141.5

3,438.2

9.44

13,569.1

14,571.6

7.39

Cozumel

76.8

76.0

(1.04)

443.7

397.1

(10.50)

Huatulco

22.0

27.3

24.09

101.5

117.6

15.86

Mérida

28.8

41.2

43.06

117.2

163.7

39.68

Minatitlán

2.9

1.9

(34.48)

10.3

11.3

9.71

Oaxaca

13.8

15.2

10.14

63.6

59.5

(6.45)

Tapachula

2.5

3.5

40.00

10.9

12.0

10.09

Veracruz

19.1

16.2

(15.18)

83.0

73.2

(11.81)

Villahermosa

13.4

9.8

(26.87)

52.9

43.4

(17.96)

TOTAL

3,320.8

3,629.3

9.29

14,452.2

15,449.4

6.90

Note: Passenger figures exclude transit and general aviation passengers.

 

Table III: Total Passengers (in thousands)

Airport

4Q15

4Q16

%

Change

FY15

FY16

%

Change

Cancún

4,645.2

5,234.4

12.68

19,596.5

21,415.8

9.28

Cozumel

113.3

112.3

(0.88)

553.8

538.1

(2.83)

Huatulco

148.6

171.7

15.55

618.7

662.8

7.13

Mérida

456.4

542.2

18.80

1,663.6

1,944.8

16.90

Minatitlán

66.5

55.2

(16.99)

256.4

233.3

(9.01)

Oaxaca

179.5

198.5

10.58

663.2

747.0

12.64

Tapachula

74.9

87.9

17.36

265.7

308.8

16.22

Veracruz

313.3

338.4

8.01

1,249.9

1,315.9

5.28

Villahermosa

330.2

340.7

3.18

1,273.1

1,240.8

(2.54)

TOTAL

6,327.9

7,081.3

11.91

26,140.9

28,407.3

8.67

Note: Passenger figures exclude transit and general aviation passengers.

 

Consolidated Results for 4Q16

Total revenues for 4Q16 rose 5.90% year-over-year to Ps.3,076.59 million, principally due to increases of:

  • 19.10% in revenues from aeronautical services, mainly as a result of the 11.91% increase in passenger traffic; and
  • 21.66% in revenues from non-aeronautical services, principally reflecting the 21.41% increase in commercial revenues detailed below.

These increases were partially offset by the 11.35% decline in revenues from construction services that resulted from lower capital expenditures and other investments in concessioned assets during the period.

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.

Commercial revenues in the quarter rose 21.41% year-over-year, principally due to an 11.91% increase in total passenger traffic. There were increases in revenues from the following activities:

  • 23.55% in retail operations;
  • 13.86% in duty free;
  • 40.43% in food and beverage operations;
  • 32.34% in other revenue;
  • 17.49% in car rental revenues;
  • 8.23% in parking lot fees;
  • 33.30% in banking and currency exchange services;
  • 3.30% in ground transportation; and
  • 52.32% in teleservices.

This was partially offset by a 6.68% decline in advertising revenues.

Retail and Other Commercial Space
Opened since December 31, 2015

Business Name

Type

Opening Date

Cancún



Starbucks Café

Food & Beverage

February 2016

The Kitchen Counter by Wolfgang Puck

Food & Beverage

March 2016

Pineda Covalin

Retail

June 2016

Tienda de Conveniencia

Retail

July 2016

Starbucks Café

Food & Beverage

August 2016

Tiendas Tropicales

Retail

August 2016

Tiendas Tropicales

Retail

August 2016

Tere Cazola

Retail

September 2016

Ice Casa de Cambio

Bank and Foreign

September 2016

TUMI

Retail

December 2016

Mérida



La Lupita

Retail

October 2016

MOBO

Retail

November 2016

Villahermosa



Dfass Mexico

Duty Free

October 2016

Veracruz



NLG Services

Salon Vip

March 2016

Star Island Café

Food & Beverage

March 2016

Johnny Rocket

Food & Beverage

March 2016

Cloe

Retail

March 2016

Air Shop (kiosk)

Retail

June 2016

Dfass Mexico

Duty Free

October 2016

Huatulco



Dfass Mexico

Duty Free

December 2016

Dfass Mexico

Duty Free

December 2016

* Only includes new stores opened during the period and excludes remodelings or contract renewals.

 

Table IV: Commercial Revenues per Passenger for 4Q16


4Q15

4Q16

% Change

Total Passengers ('000)

6,382

7,131

11.74

Total Commercial Revenues

566,059

687,251

21.41

Commercial revenues from direct
operations (1)

94,962

112,362

18.32

Commercial revenues excluding
direct operations

471,097

574,889

22.03






4Q15

4Q16

% Change

Total Commercial Revenue per Passenger

88.70

96.38

8.66

Commercial revenue from direct
operations per passenger (1)

14.88

15.76

5.91

Commercial revenue per
passenger (excluding direct
operations)

73.81

80.62

9.21

Note: For purposes of this table, approximately 54,600 and 50,000 transit and general aviation
         passengers are included in 4Q15 and 4Q16, respectively.

(1)  Represents ASUR's operation of convenience stores in airports.

 

Construction revenues and expenses: 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. During 4Q16, ASUR recognized Ps.1,163.52 million in revenues from "Construction Revenues," a year-on-year decline of 11.35%, due to lower capital expenditures and fewer investments in concessioned assets. 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, as the increase in revenues that relates to Construction Revenues does not result in a corresponding increase in EBITDA.

As a result, 4Q16 EBITDA Margin was 43.55% compared to 38.77% in 4Q15. Adjusted EBITDA Margin, however, which excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets, was 70.04% in 4Q16 compared with 70.71% in 4Q15.

Total operating costs and expenses for 4Q16 declined 1.37% year-over-year. This was mainly the result of the 11.35% decline in construction costs resulting from lower capital expenditures and fewer investments in concessioned assets during the period, together with a 2.76% decline in administrative expenses principally reflecting lower professional fees. These declines more than offset the following cost increases:

  • 28.91% in cost of services, mainly due to the Terminal 3 expansion and the higher cost of sales from convenience stores directly operated by ASUR;
  • 19.42% in the technical assistance fee paid to ITA, resulting from the increase in EBITDA for the quarter (a factor in the calculation of the fee);
  • 20.42% in concession fees paid to the Mexican government, mainly due to an increase in regulated revenues (a factor in the calculation of the fee); and
  • 13.75% in depreciation and amortization, resulting mainly from capitalized investments.

Excluding construction costs, operating costs and expenses rose 21.00% to Ps.708.70 million.

  Table V: Operating Costs and Expenses for 4Q16


4Q15

4Q16

% Change

Cost of Services

283,379

365,310

28.91

Administrative

52,161

50,722

(2.76)

Technical Assistance

59,282

70,793

19.42

Concession Fees

71,617

86,241

20.42

Depreciation and Amortization

119,240

135,632

13.75

Operating Costs and Expenses
Excluding Construction Costs

585,679

708,698

21.00

Construction Costs     

1,312,527

1,163,524

(11.35)

TOTAL

1,898,206

1,872,222

(1.37)

 

Operating margin for the quarter increased to 39.15% from 34.66% in 4Q15, as a result of the 5.90% increase in revenues along with the 1.37% reduction in expenses.

Adjusted operating margin, 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 less construction services revenues, was 62.95% in 4Q16 compared with 63.23% in 4Q15.

Comprehensive Financing Gain (Loss) for 4Q16 was a Ps.1.37 million loss, compared to a Ps.0.56 million loss in 4Q15. Interest expenses rose by Ps.5.22 million during the period, mainly due to the increase in interest rates. Interest income increased by Ps.10.95 million reflecting a higher cash balance.

Furthermore, in 4Q16, ASUR reported a foreign exchange loss of Ps.23.87 million, reflecting a 3.25% quarterly average depreciation of the Mexican peso against the U.S. dollar on ASUR's lower foreign currency net liability position. This compared to a Ps.17.33 million loss in 4Q15 resulting from the quarterly average Mexican peso depreciation during that period.

Table VI: Comprehensive Financing Result (Cost)


4Q15

4Q16

Change

% Change

Interest income

44,625

55,576

10,951

24.54

Interest expenses

(27,856)

(33,075)

(5,219)

18.74

Foreign exchange gain (loss), net

(17,326)

(23,871)

(6,545)

37.78

Total

(557)

(1,370)

(813)

145.96

 

In addition, in 4Q16, ASUR recognized a Ps.150.00 million gain in stockholders' equity resulting from the translation effect of Aerostar's financial statements (which are denominated in U.S. dollars), relating to the valuation of the stockholders' equity derived from the 6.41% depreciation of the peso against the U.S. dollar, between the close of 4Q16 and the close of 3Q16.

Income (Loss) from Equity Investment in Joint Venture.
During 4Q16, our equity in the income of Aerostar, our joint venture with Highstar Capital IV and its affiliated funds, was a net gain of Ps.7.09 million. In addition, ASUR recorded a Ps.150.00 million gain in stockholders' equity resulting from the translation effect of Aerostar's financial statements (which are denominated in U.S. dollars), relating to the valuation of the shareholders' equity derived from the 6.41% depreciation of the peso against the U.S. dollar, between the close of 3Q16 and the close of 4Q16. In 4Q15, ASUR reported a net loss of Ps.13.43 million from our equity in the income of Aerostar and a Ps.26.85 million gain in stockholders' equity resulting from the translation effect of Aerostar's financial statements relating to the valuation of the shareholders' equity derived from the depreciation of the peso against the U.S. dollar.

During 4Q16, total passenger traffic at SJU airport declined 0.98% to 2,109,394 from 2,130,361 in 4Q15.

Income Taxes for 4Q16 increased by Ps.30.45 million year-over-year, principally due to the following factors:

  • A Ps.41.06 million increase in the provision for income taxes, reflecting a higher taxable income base at the Veracruz and Cancún airports, as well as at Cancún Airport Services; and taxable income at Huatulco airport.
  • A Ps.9.94 million decline in deferred income taxes largely reflecting the recognition of the effects of the 1.86% increase in inflation during 4Q16 on the fiscal tax balance.

Net income for 4Q16 increased by 25.54% to Ps.917.51 million, up from Ps.730.83 million in 4Q15. Earnings per common share for the quarter were Ps.3.0584 and earnings per ADS (EPADS) were US$1.4832 (one ADS represents ten series B common shares). This compares with earnings per share of Ps.2.4361 and EPADS of US$1.1815 for the same period last year. The higher net income principally reflects the 11.91% increase in passenger traffic. During 4Q16, ASUR reported a Ps.7.09 million gain corresponding to its participation in Aerostar, the joint venture to operate SJU airport, compared to a net loss Ps.13.43 million in 4Q15.

Table VII: Summary of Consolidated Results for 4Q16


4Q15

4Q16

% Change

Total Revenues

2,905,157

3,076,590

5.90

Aeronautical Services

956,472

1,139,120

19.10

Non-Aeronautical Services

636,158

773,946

21.66

Commercial Revenues

566,059

687,251

21.41

Total Revenues Excluding
Construction Revenues

1,592,630

1,913,066

20.12

Construction Revenues

1,312,527

1,163,524

(11.35)

Operating Profit

1,006,951

1,204,368

19.61

Operating Margin

34.66%

39.15%

12.95

Adjusted Operating Margin1

63.23%

62.95%

(0.44)

EBITDA

1,126,191

1,340,000

18.99

EBITDA Margin

38.77%

43.55%

12.36

Adjusted EBITDA Margin2

70.71%

70.04%

(0.94)

Net Income

730,833

917,506

25.54

Earnings per Share

2.4361

3.0584

25.54

Earnings per ADS in US$

1.1815

1.4832

25.54

Note:  U.S. dollar figures are calculated at the exchange rate of US$1 = Ps. 20.6194.


1.   Adjusted Operating Margin excludes the effect of IFRIC12 with respect to the construction or
      improvements to concessioned assets, and is equal to operating profit divided by total revenues less
      construction services revenues.


2.   Adjusted EBITDA Margin excludes the effect of IFRIC12 with respect to the construction or
      improvements to concessioned assets, and is calculated by dividing EBITDA by total revenues less
      construction services revenues.

 

Consolidated Results for Fiscal Year 2016

Total revenues for FY16 increased year-over-year by 8.44% to Ps.9,753.49  million, mainly due to the following increases:

  • 15.56% in revenues from aeronautical services as a result of the 8.67% increase in passenger traffic during the period; and
  • 24.58% in revenues from non-aeronautical services, principally due to the 25.42% increase in commercial revenues detailed below.

These increases were partially offset by the 17.97% decline in construction services due to lower capital investments made during the period.

Commercial revenues for FY16 rose by 25.42% year-over-year, principally due to revenue increases in the following areas:

  • 26.92% in retail operations;
  • 20.61% in duty-free stores;
  • 31.20% in food and beverage operations;
  • 36.53% in car rentals;
  • 41.26% in other income;
  • 0.89% in advertising;
  • 10.08% in parking lot fees;
  • 25.70% in banking and currency exchange services;
  • 10.93% in ground transportation services; and
  • 31.86% in teleservices.

Table VIII: Commercial Revenues per Passenger for FY16


FY15

FY16

% Change

Total Passengers ('000)

26,344

28,622

8.65

Total Commercial Revenues

2,210,549

2,772,544

25.42

Commercial revenues from direct
operations (1)

424,682

482,276

13.56

Commercial revenues excluding
direct operations

1,785,867

2,290,268

28.24



FY15

FY16

% Change

Total Commercial Revenue per Passenger

83.91

96.87

15.45

Commercial revenue from direct
operations per passenger (1)

16.12

16.85

4.53

Commercial revenue per
passenger (excluding direct
operations)

67.79

80.02

18.04





Note: For purposes of this table, approximately 203,200 and 214,900 transit and general aviation
passengers are included for FY15 and FY16, respectively.

(1)     Represents ASUR's operation of convenience stores in airports.

 

Total operating costs and expenses for FY16 declined by 2.05% year-over-year, primarily due to the 17.97% reduction in construction costs resulting from lower capital expenditures and fewer investments in concessioned assets during the period, which more than offset the following cost increases:

  • 16.78% in cost of services, principally due to higher energy, security and maintenance expenses in connection with the Terminal 3 expansion. Higher cost of sales from the convenience stores directly operated by ASUR, together with higher software license, professional fees, and office leases also contributed to this increase;
  • 18.33% in concession fees paid to the Mexican government, mainly due to an increase in regulated revenues (a factor in the calculation of the fee);
  • 20.46% in technical assistance costs, reflecting the corresponding increase in EBITDA during the period;
  • 12.93% in depreciation and amortization, resulting mainly from higher capitalized investments; and
  • 3.99% in administrative expenses, principally reflecting higher professional fees and security expenses.

Excluding construction costs, operating costs and expenses rose 15.50% to Ps.2,703.94 million.

Table IX: Operating Costs and Expenses for FY16


FY15

FY16

% Change

Cost of Services

1,144,327

1,336,386

16.78

Administrative

196,990

204,842

3.99

Technical Assistance

239,175

288,111

20.46

Concession Fees

291,505

344,939

18.33

Depreciation and Amortization

468,996

529,660

12.93

Operating Cost and Expenses Excluding Construction Costs

2,340,993

2,703,938

15.50

Construction Costs

2,580,707

2,116,954

(17.97)

TOTAL

4,921,700

4,820,892

(2.05)

 

Operating Margin in FY16 increased to 50.57% from 45.28% in FY15.  This was mainly the result of the 8.44% increase in revenues combined with the 2.05% decline in expenses in the year.

Adjusted Operating Margin, 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 less construction services revenues, increased to 64.59% in FY16 from 63.50% in FY15.

Comprehensive Financing Gain (Loss) for FY16 was a Ps.45.47 million loss, compared to a Ps.109.96 million loss in FY15, principally due to a Ps.103.85 million foreign exchange loss in FY16 reflecting the 19.54% average depreciation of the Mexican peso against the U.S. dollar on ASUR's foreign currency net liability position, as compared to a Ps.168.66 million foreign exchange loss in FY15 resulting from the impact of the 17.01% average depreciation of the Mexican peso against the U.S. dollar on ASUR's foreign currency net liability position.

Interest income increased by Ps.28.85 million in the year, reflecting a higher cash position, while interest expense increased by Ps.29.17 million, reflecting higher interest rates.

Table X: Comprehensive Financing Gain (Loss)


FY15

FY16

Change

% Change

Interest income

155,718

184,569

28,851

18.53

Interest expenses

(97,017)

(126,186)

(29,169)

30.07

Foreign exchange gain (loss), net

(168,664)

(103,852)

64,812

(38.43)

Total

(109,963)

(45,469)

64,494

(58.65)

 

Furthermore, ASUR reported a Ps.400.35 million gain in stockholders' equity resulting from the translation effect of Aerostar's financial statements (which are denominated in U.S. dollars), relating to the valuation of the capital stock derived from the depreciation of the peso against the U.S. dollar.

Income (Loss) from Equity Investment in Joint Venture.
During FY16, our equity from the income of the Aerostar joint venture was Ps.144.25 million. In addition, ASUR recorded a Ps.400.35 million gain in stockholders' equity resulting from the translation effect of Aerostar's financial statements (which are denominated in U.S. dollars), relating to the valuation of the capital stock derived from the depreciation of the peso against the U.S. dollar. In FY15, ASUR reported a net gain of Ps.50.92 million from its equity in the income of Aerostar and a Ps.272.76 million gain in stockholders' equity, relating to the valuation of the capital stock derived from the appreciation of the peso against the U.S. dollar.

Total passenger traffic at SJU increased 2.55% in FY16 to 9,032,627 passengers from 8,808,028 during FY15.

Net income in FY16 increased by 24.56% to Ps.3,629.26 million. Earnings per common share for fiscal year 2016 were Ps.12.0975 and earnings per ADS (EPADS) were US$5.8671 (one ADS represents ten series B common shares).  This compares with Ps.9.7125 per share and EPADS of US$4.7103 for FY15.

Net income for FY16 benefitted from the 8.67% increase in passenger traffic in the period and reflects the Ps.144.25 million of equity in income corresponding to ASUR's participation in Aerostar, the joint venture to operate SJU airport, compared to equity in income of Ps.50.92 million in FY15.

Table XI: Summary of Consolidated Results for FY16


FY15

FY16

Change

Total Revenues

8,994,597

9,753,491

8.44

Aeronautical Services

3,921,949

4,532,194

15.56

Non-Aeronautical Services

2,491,941

3,104,343

24.58

Commercial Revenues

2,210,549

2,772,544

25.42

Total Revenues Excluding Construction Revenues

6,413,890

7,636,537

19.06

Construction Revenues

2,580,707

2,116,954

(17.97)

Operating Profit

4,072,897

4,932,599

21.11

Operating Margin

45.28%

50.57%

11.68

Adjusted Operating Margin1

63.50%

64.59%

1.72

EBITDA

4,541,893

5,462,259

20.26

EBITDA Margin %

50.50%

56.00%

10.91

Adjusted EBITDA Margin2

70.81%

71.53%

1.01

Net Income

2,913,735

3,629,262

24.56

Earnings per Share

9.7125

12.0975

24.56

Earnings per ADS in US$

4.7103

5.8671

24.56

Note:    U.S. dollar figures are calculated at the exchange rate of US$1 = Ps.20.6194.


1.   Adjusted Operating Margin excludes the effect of IFRIC12 with respect to the construction
      or improvements to concessioned assets, and is equal to operating profit divided by total
      revenues less construction services revenues.


2.   Adjusted EBITDA Margin excludes the effect of IFRIC12 with respect to the construction
      or improvements to concessioned assets, and is calculated by dividing EBITDA by total
      revenues less construction services revenues.

  

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 regulated revenues for FY16 were Ps.4,762.54 million, resulting in an annual average tariff per workload unit of Ps.157.08. ASUR's regulated revenues accounted for approximately 62.37% of total income (excluding construction income) for the period.

Compliance with maximum rate regulations is reviewed by the Mexican Ministry of Communications and Transportation at the close of each year.

Balance Sheet

On December 31, 2016, airport concessions represented 69.43% of the Company's total assets, with current assets representing 14.49% and other assets representing 16.08%.

Cash and cash equivalents on December 31, 2016, were Ps.3,497.63 million, an increase of 67.82% from the Ps.2,084.16 million recorded on December 31, 2015.

Stockholders' equity at the close of 4Q16 was Ps.22,753.95  million and total liabilities were Ps.6,462.14 million, representing 77.88% and 22.12% of total assets, respectively. Deferred liabilities represented 22.69% of ASUR's total liabilities.

Total bank debt at December 31, 2016 was Ps.4,460.78 million, including Ps.27.61 million in accrued interest and commissions.

ASUR's Cancún airport subsidiary has total bank loans of U.S.$215.0 million, comprised of two separate loans of US$107.5 million from each of BBVA Bancomer and Bank of America. The loans mature in 2022 and will amortize semi-annually from 2018 through 2022, pursuant to an agreed schedule.  The loans are denominated in U.S. dollars and charge interest at a rate equal to LIBOR plus 1.85%.  The loans are guaranteed by Grupo Aeroportuario del Sureste, S.A.B. de C.V. and were originally used to finance ASUR's capital contribution and subordinated shareholder loan to Aerostar.

Capital Expenditures

During 4Q16, ASUR made investments of Ps.1,007.33 million as part of ASUR's ongoing plan to modernize its airports pursuant to its master development plans. Capital expenditures for FY16 totaled Ps.1,814.48 million.

4Q16 Earnings Conference Call

Day:

Thursday, February 23, 2017

Time:

10:00 AM US ET; 9:00 AM Mexico City time 

Dial-in
number:

1-877-856-1956 (US & Canada) and 1-719-325-4765
(International & Mexico) 

Access Code:

3584181

Please dial in 10 minutes before the scheduled start time.

Replay:

Thursday, February 23, 2017 at 1:00 PM US ET, ending at
midnight US ET on Wednesday, March 1, 2017. Dial-in
number: 1-844-512-2921 (US & Canada); 1-412-317-6671
(International & Mexico). Access Code: 3584181

 

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 Merril 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.

About ASUR:

Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASUR) is a Mexican airport operator with concessions to operate, maintain and develop the airports of Cancún, Mérida, Cozumel, Villahermosa, Oaxaca, Veracruz, Huatulco, Tapachula and Minatitlán in the southeast of México, as well as a 50% JV partner in Aerostar Airport Holdings, LLC, operator of the Luis Muñoz Marín International Airport of Puerto Rico. The Company is listed both on the NYSE in the U.S., where it trades under the symbol ASR, and on the Mexican Bolsa, where it trades under the symbol ASUR. One ADS represents ten (10) Series B shares.

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.

Grupo Aeroportuario del Sureste, S.A.B. de C.V.

Operating Results per Airport

Thousands of Mexican pesos 










Item

4Q
2015

4Q 2015 Per
Workload Unit

4Q
2016

4Q 2016 Per
Workload Unit

FY
2015

FY 2015 Per
Workload Unit

FY
2016

FY 2016 Per
Workload Unit

Cancún (1)









Aeronautical Revenues

685,532

145.2

816,629

153.6

2,877,885

144.8

3,341,882

154.0

Non-Aeronautical Revenues

574,315

121.7

702,080

132.0

2,250,665

113.3

2,823,209

130.1

Construction Services Revenues

961,598

203.7

1,111,701

209.1

1,846,138

92.9

1,896,338

87.4

Total Revenues

2,221,445

470.5

2,630,410

494.7

6,974,688

351.0

8,061,429

371.6

Operating Profit

717,031

151.9

864,605

162.6

3,091,198

155.6

3,782,382

174.3

EBITDA

789,701

167.3

948,623

178.4

3,377,858

170.0

4,111,201

189.5

Mérida









Aeronautical Revenues

75,065

148.6

95,799

161.8

272,065

146.2

334,163

156.0

Non-Aeronautical Revenues

19,209

38.0

22,344

37.7

71,872

38.6

85,150

39.8

Construction Services Revenues

107,884

213.6

10,463

17.7

204,450

109.9

98,668

46.1

Other (2)

11

0.0

14

0.0

27

0.0

53

0.0

Total Revenues

202,169

400.3

128,620

217.3

548,414

294.7

518,034

241.8

Operating Profit

41,572

82.3

34,054

57.5

139,649

75.0

158,770

74.1

EBITDA

50,957

100.9

44,055

74.4

175,936

94.5

198,294

92.6

Villahermosa









Aeronautical Revenues

45,752

133.8

51,330

145.8

174,103

132.3

181,123

140.8

Non-Aeronautical Revenues

15,645

45.7

16,080

45.7

58,278

44.3

62,297

48.4

Construction Services Revenues

25,500

74.6

13,190

37.5

61,650

46.8

44,875

34.9

Other (2)

14

0.0

16

0.0

66

0.1

59

0.0

Total Revenues

86,911

254.1

80,616

229.0

294,097

223.5

288,354

224.2

Operating Profit

26,132

76.4

31,466

89.4

104,466

79.4

109,398

85.1

EBITDA

32,775

95.8

38,740

110.1

130,565

99.2

137,747

107.1

Other Airports (3)









Aeronautical Revenues

150,123

163.9

175,362

178.2

597,896

162.6

675,026

173.7

Non-Aeronautical Revenues

26,989

29.5

33,442

34.0

111,126

30.2

133,687

34.4

Construction Services Revenues

217,545

237.5

28,170

28.6

468,469

127.4

77,073

19.8

Other (2)

90,256

98.5

39

0.0

103,380

28.1

143

0.0

Total Revenues

484,913

529.4

237,013

240.9

1,280,871

348.3

885,929

227.9

Operating Profit

148,111

161.7

79,540

80.8

356,656

97.0

322,237

82.9

EBITDA

178,098

194.4

113,729

115.6

474,357

129.0

453,093

116.6

Holding & Service Companies (4)









Construction Services Revenues

0

 n/a 

0

 n/a 

0

 n/a 

0

 n/a 

Other (2)

372,729

 n/a 

424,880

 n/a 

1,291,669

 n/a 

1,455,486

 n/a 

Total Revenues

372,729

 n/a 

424,880

 n/a 

1,291,669

 n/a 

1,455,486

 n/a 

Operating Profit

74,105

 n/a 

194,703

 n/a 

380,928

 n/a 

559,812

 n/a 

EBITDA

74,660

 n/a 

194,853

 n/a 

383,177

 n/a 

561,924

 n/a 

Consolidation Adjustment









Consolidation Adjustment

(463,010)

 n/a 

(424,949)

 n/a 

(1,395,142)

 n/a 

(1,455,741)

 n/a 

Group









Aeronautical Revenues

956,472

147.5

1,139,120

157.2

3,921,949

146.7

4,532,194

156.2

Non-Aeronautical Revenues

636,158

98.1

773,946

106.8

2,491,941

93.2

3,104,343

107.0

Construction Services Revenues

1,312,527

202.4

1,163,524

160.6

2,580,707

96.6

2,116,954

73.0

Total Revenues

2,905,157

448.1

3,076,590

424.7

8,994,597

336.5

9,753,491

336.2

Operating Profit

1,006,951

155.3

1,204,368

166.2

4,072,897

152.4

4,932,599

170.0

EBITDA

1,126,191

173.7

1,340,000

185.0

4,541,893

169.9

5,462,259

188.3










(1)Reflects the results of operations of Cancun Airport and two Cancun Airport Services subsidiaries on a consolidated basis.




(2) Reflects revenues under intercompany agreements which are eliminated in the consolidation adjustment.





(3) Reflects the results of operations of our airports located in Cozumel, Huatulco, Minatitlan, Oaxaca, Tapachula and Veracruz.




(4) Reflects the results of operations of our parent holding company and our services subsidiaries. Because none of these entities hold the concessions for our airports, we

    do not report workload unit data for theses entities.








 

 















Grupo Aeroportuario del Sureste, S.A.B. de C.V  

Consolidated Balance Sheet as of  December 31, 2016 and December 31, 2015

Thousands of Mexican pesos 



I t e m


December 2016


December 2015


Variation


%

















A s s e t s 












Current Assets













Cash and Cash Equivalents


3,497,635


2,084,160


1,413,475


67.82





Accounts Receivable, net


464,872


419,615


45,257


10.79





Recoverable Taxes and Other Current Assets


270,511


481,754


(211,243)


(43.85)

















Total Current Assets


4,233,018


2,985,529


1,247,489


41.78

















Non Current Assets













Machinery, Furniture and Equipment, net


323,099


321,913


1,186


0.37





Airports Concessions, net


20,284,126


19,022,311


1,261,815


6.63





Accounts Receivable from Joint Venture


1,886,546


1,851,423


35,123


1.90





Investment in Joint Venture Accounted by the Equity Method


2,489,302


1,944,708


544,594


28.00

















Total  Assets


29,216,091


26,125,884


3,090,207


11.83

















Liabilities and Stockholders' Equity












Current Liabilities













Trade Accounts Payable


11,401


21,068


(9,667)


(45.88)





Bank Loans


58,336


39,893


18,443


46.23





Accrued Expenses and Others Payables


523,446


445,736


77,710


17.43




Total Current Liabilities


593,183


506,697


86,486


17.07

















Long Term Liabilities













Bank Loans


4,402,440


3,678,128


724,312


19.69





Deferred Income Taxes


1,456,020


1,523,722


(67,702)


(4.44)





Employee Benefits


10,494


9,288


1,206


12.98




Total Long Term Liabilities


5,868,954


5,211,138


657,816


12.62

















Total Liabilities


6,462,137


5,717,835


744,302


13.02

















Stockholders' Equity













Capital Stock


7,767,276


7,767,276


0


0.00





Legal Reserve


893,133


747,077


146,056


19.55





Net Income for the Period


3,629,262


2,913,735


715,527


24.56





Cumulative Effect of Conversion of Foreign Currency

893,132


492,786


400,346


81.24





Retained Earnings 


9,571,151


8,487,175


1,083,976


12.77





Total Stockholders' Equity


22,753,954


20,408,049


2,345,905


11.49

















Total Liabilities and Stockholders' Equity


29,216,091


26,125,884


3,090,207


11.83
















 

 




 Grupo Aeroportuario del Sureste, S.A.B. de C.V  

Consolidated Statement of Income from January 1 to December 31,  2016 and 2015

Thousands of Mexican pesos 


































I t e m


 FY 


 FY 


%


 4Q 


 4Q 


%




2015


2016


Change


2015


2016


Change



















Revenues
















Aeronautical Services


3,921,949


4,532,194


15.56


956,472


1,139,120


19.10




















Non-Aeronautical Services


2,491,941


3,104,343


24.58


636,158


773,946


21.66




















Construction Services


2,580,707


2,116,954


(17.97)


1,312,527


1,163,524


(11.35)



















Total Revenues


8,994,597


9,753,491


8.44


2,905,157


3,076,590


5.90



















Operating Expenses
































Cost of Services


1,144,327


1,336,386


16.78


283,379


365,310


28.91




Cost of Construction


2,580,707


2,116,954


(17.97)


1,312,527


1,163,524


(11.35)




General and Administrative Expenses


196,990


204,842


3.99


52,161


50,722


(2.76)




Technical Assistance


239,175


288,111


20.46


59,282


70,793


19.42




Concession Fee


291,505


344,939


18.33


71,617


86,241


20.42




Depreciation and Amortization


468,996


529,660


12.93


119,240


135,632


13.75



Total Operating Expenses


4,921,700


4,820,892


(2.05)


1,898,206


1,872,222


(1.37)



















Operating Income


4,072,897


4,932,599


21.11


1,006,951


1,204,368


19.61



















Comprehensive Financing Cost


(109,963)


(45,469)


(58.65)


(557)


(1,370)


145.96



















Income from results of Joint Venture















Accounted by the Equity Method


50,923


144,248


183.27


(13,431)


7,089


(152.78)



































































Income Before Income Taxes


4,013,857


5,031,378


25.35


992,963


1,210,087


21.87




































Provision for Income Tax


1,198,273


1,502,976


25.43


316,178


357,240


12.99




Provision for Asset Tax


5,259


932


(82.28)


901


233


(74.14)




Deferred Income Taxes


(103,410)


(101,792)


(1.56)


(54,949)


(64,892)


18.09




































Net Income for the Year


2,913,735


3,629,262


24.56


730,833


917,506


25.54



















Earning per Share


9.7125


12.0975


24.56


2.4361


3.0584


25.54



Earning per American Depositary Share (in U.S. Dollars)


4.7103


5.8671


24.56


1.1815


1.4832


25.54



Exchange Rate per Dollar Ps. 20.6194






























 

 
















Grupo Aeroportuario del Sureste, S.A.B. de C.V.


 Consolidated Statement of Cash flow as of December 31,  2016 and 2015


Thousands of Mexican pesos
















Related


 FY 


 FY 


%


 4Q 


 4Q 


%



2015


2016


Change


2015


2016


Change
































Operating Activities





























Income Before Income Taxes


4,013,857


5,031,378


25


992,963


1,210,087


22


Items Related with Investing Activities:















Depreciation and Amortization


468,996


529,660


13


119,240


135,632


14



Income from Results of Joint Venture Accounted by the Equity Method


(50,923)


(144,248)


183


13,431


(7,089)


(153)



Interest Income


(155,718)


(184,569)


19


(44,624)


(55,576)


25



Net unrealized exchange rate fluctuation.


283,383


396,839


40


38,812


163,447


321
































Sub-Total


4,559,595


5,629,060


23


1,119,822


1,446,501


29

















Increase in Trade Receivables


30,194


(45,257)


(250)


(343,695)


(368,940)


7


Decrease in Recoverable Taxes and other Current Assets


269,696


335,343


24


(180,063)


(71,493)


(60)


Other Deferred Assets


0




0


0


0


0


Income Tax Paid


(1,366,174)


(1,569,878)


15


(272,183)


(313,822)


15


Income Tax on dividends


0


0


0


0




0


   Trade Accounts Payable


16,336


113,902


597


(74,033)


(10,585)


(86)


   Accrued Expenses and Others Payables


0


0


0


0


0


0


    Long Term Liabilities


0


0


0


0


0


0

















Net Cash Flow Provided by Operating Activities


3,509,647


4,463,170


27


249,848


681,661


173

















Investing Activities














   Investments in Associates


0


0


0


0


0


0


   Loans granted to Associates


0


325,694


0


0


263,617


0


   Loans repaid by Associates


0


0


0


0


0


0


   Investments in Machinery, Furniture and Equipment, net


(2,906,567)


(1,814,482)


(38)


(1,704,895)


(1,007,328)


(41)


   Investments in Rights to Use Airport Facilities


0


0


0


0


0


0


   Investments in Construction in Process


0


0


0


0


0


0


   Investments in Others


0


0


0


0


0


0


Interest Income


155,718


122,093


(22)


44,624


38,305


(14)

















Net Cash Flow Provided by Investing Activities


(2,750,849)


(1,366,695)


(50)


(1,660,271)


(705,406)


(58)

















Excess Cash to Use in Financing Activities:


758,798


3,096,475


308


(1,410,423)


(23,745)


(98)

















Bank Loans


0


0


0


0


0


0


Dividends Paid


(1,530,000)


(1,683,000)


10


0


0


0


Tax on Dividends Paid


0


0


0


0


0


0

















Net Cash Flow Provided by Financing Activities


(1,530,000)


(1,683,000)


10


0


0


0

















Net Increase in Cash and Cash Equivalents


(771,202)


1,413,475


(283)


(1,410,423)


(23,745)


(98)

















Cash and Cash Equivalents at Beginning of Period


2,855,362


2,084,160


(27)


3,494,583


3,521,380


1

















Cash and Cash Equivalents at the End of Period


2,084,160


3,497,635


68


2,084,160


3,497,635


68

















 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/asur-4q16-passenger-traffic-up-1191-yoy-300411977.html