Business Context and Reporting Period
Company: Southeast Airport Group (Grupo Aeroportuario del Sureste, S.A.B. de C.V.)
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Second Quarter (2Q) and First Half (1H) ended June 30, 2011
Business Overview: ASUR operates nine airports in southeast Mexico, including the major hub at Cancún. The company is subject to tariff regulation by the Mexican Ministry of Communications and Transportation.
Key Financial Metrics
Second Quarter 2011 (2Q11)
- Total Revenues: Ps.1,094.61 million (up 7.07% YoY)
- EBITDA: Ps.621.29 million (up 10.00% YoY); Margin improved to 56.76%
- Operating Profit: Ps.526.28 million (up 10.69% YoY); Margin improved to 48.08%
- Net Income: Ps.386.18 million (up 12.04% YoY)
- Earnings Per Share (EPS): Ps.1.2873
- Earnings Per ADS (US$): $1.0981
- Commercial Revenue per Passenger: Ps.66.22 (up 8.26% YoY)
First Half 2011 (1H11)
- Total Revenues: Ps.2,157.51 million (up 3.37% YoY)
- EBITDA: Ps.1,298.49 million (up 5.50% YoY); Margin improved to 60.18%
- Operating Profit: Ps.1,109.30 million (up 5.42% YoY); Margin improved to 51.42%
- Net Income: Ps.806.39 million (up 4.03% YoY)
- Earnings Per Share (EPS): Ps.2.6880
- Earnings Per ADS (US$): $2.2929
Liquidity and Balance Sheet (as of June 30, 2011)
- Cash and Cash Equivalents: Ps.1,366.44 million (up 131.33% vs. June 30, 2010)
- Total Bank Debt: Ps.831.5 million (including Ps.1.0 million accrued interest)
- Shareholders' Equity: Ps.14,701.85 million (80.13% of total assets)
- Total Liabilities: Ps.3,644.58 million (19.87% of total assets)
- Capital Expenditures (2Q11): Ps.109.45 million
Material Changes vs. Prior Period
Passenger Traffic
- 2Q11 Total Traffic: Increased 2.89% YoY to 4.41 million passengers.
- Domestic Traffic: Rose 5.73% YoY, driven by growth at Cancún (+8.44%), Villahermosa (+13.77%), Huatulco (+20.73%), and Mérida (+12.20%).
- International Traffic: Rose 0.90% YoY, primarily due to a 1.18% increase at Cancún.
- Declines: Significant drops occurred at Oaxaca (-18.44%), Minatitlán (-22.51%), Tapachula (-9.78%), and Veracruz (-5.91%).
Revenue Composition
- Aeronautical Revenues: Increased 5.38% (2Q11) and 3.64% (1H11), tracking passenger volume.
- Non-Aeronautical Revenues: Increased 9.34% (2Q11) and 7.25% (1H11). Commercial revenues grew 10.53% in 2Q11, led by retail operations (+22.31%) and parking fees (+15.58%).
- Construction Services: Increased 9.39% in 2Q11 due to asset improvements, but declined 9.54% in 1H11.
- Costs: Total operating costs rose 3.93% in 2Q11 and 1.29% in 1H11. Depreciation and amortization increased 6.37% (2Q11) and 5.96% (1H11).
Guidance, Outlook, and Management Commentary
- Management Changes: Adolfo Castro assumed the role of CEO effective June 1, 2011. Fernando Chico Pardo remains Chairman. A new Chief Financial and Strategic Planning Officer is expected to be named shortly.
- Regulatory Environment: Regulated revenues accounted for 62.02% of total income in 1H11. The Ministry reviews compliance with maximum rates annually.
- Accounting Changes: Adoption of I-MFRS 17 "Service Concession Contracts" requires recognizing construction revenues and equal construction costs, which impacts revenue totals but not EBITDA margins proportionately.
- Forward-Looking Statements: The filing contains forward-looking statements regarding future expectations, which are subject to risks and assumptions. The company does not undertake an obligation to update these statements.
Investor Verification Checklist
- Traffic Divergence: Verify the sustainability of growth at Cancún and Huatulco versus the significant declines at Oaxaca and Minatitlán.
- Commercial Yield: Confirm the drivers behind the 8.26% increase in commercial revenue per passenger, specifically the impact of new direct operations (convenience stores).
- Debt Servicing: Review the terms of the Ps.920 million credit agreements (floating rate TIIE + 1.5%) and the effectiveness of the 32% interest rate hedge.
- Regulatory Risk: Monitor the annual review of maximum tariff rates by the Mexican Ministry of Communications and Transportation.
- Accounting Impact: Assess the long-term impact of I-MFRS 17 on reported revenue and expense recognition for construction projects.