Business Context and Reporting Period
Company: Central North Airport Group (OMA)
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Fourth Quarter 2021 (ended December 31, 2021) and Full Year 2021
Date of Filing: February 22, 2022
OMA operates 13 international airports in nine states of central and northern Mexico, including major hubs in Monterrey and tourist destinations. The company also manages hotel and industrial park services.
Key Financial Metrics
| Metric | 4Q21 | 4Q20 | 4Q19 |
|---|---|---|---|
| Passenger Traffic | 5.4 million | 3.3 million | 6.0 million |
| Adjusted EBITDA | Ps.1,521 million | Ps.853 million | Ps.1,402 million |
| Adjusted EBITDA Margin | 74.9% | 69.6% | 73.2% |
| Operating Income | Ps.1,275 million | N/A | N/A |
| Operating Margin | 47.6% | N/A | N/A |
| Net Income | Ps.1,016 million | Ps.240 million | N/A |
| Earnings Per Share (EPS) | Ps.2.62 | N/A | N/A |
| Cash from Operations | Ps.1,214 million | N/A | N/A |
| Cash and Equivalents (End of Period) | Ps.5,987 million | N/A | N/A |
| Capital Investments (MDP + Strategic) | Ps.752 million | N/A | N/A |
Full Year 2021 Highlights: Adjusted EBITDA of Ps.5,110 million (73.7% margin); Passenger traffic of 18.0 million (+62.9% vs 2020); Capital investments of Ps.2,117 million.
Material Changes vs. Prior Periods
- Revenue Growth: Aeronautical revenues increased 68.9% and non-aeronautical revenues increased 55.9% compared to 4Q20, driven by higher passenger traffic and commercial recovery.
- Profitability: Adjusted EBITDA rose 78.3% year-over-year to Ps.1,521 million. Net income surged to Ps.1,016 million, an increase of Ps.776 million from 4Q20, aided by a significant decrease in financing expenses (down 89.0% due to exchange gains).
- Traffic Recovery: Total passenger traffic increased 62.1% vs 4Q20 but remains 10.0% below 4Q19 levels. International traffic grew 126% vs 4Q20, while domestic traffic grew 55.8%.
- Costs: Total operating costs and expenses increased 28.8%, primarily due to higher payroll costs from labor regulation changes and increased utility/material costs from higher activity levels.
Outlook, Risks, and Management Commentary
- Outlook: Management expects passenger traffic recovery to rebound in coming months as contagion levels decrease and epidemiological risk levels allow for higher mobility. As of the report date, 5 operating states were in "yellow" risk status and 4 in "green."
- Risks: Uncertainty regarding the Omicron variant and rising positive cases at the beginning of 2022 caused a deceleration in traffic recovery. Forward-looking statements are subject to risks detailed in the most recent Form 20-F.
- Subsequent Events: A special cash dividend of up to Ps.4,370 million was approved by shareholders and paid on January 19, 2022. OMA was included in the 2022 Bloomberg Gender-Equality Index.
- Derivatives: The company reported no financial derivatives exposure as of the report date.
Investor Verification Checklist
- Verify the sustainability of the 74.9% Adjusted EBITDA margin as traffic approaches pre-pandemic (2019) levels.
- Confirm the impact of Mexican labor regulation changes on future payroll costs and operating margins.
- Monitor the epidemiological risk traffic light system in the 9 states where OMA operates to assess traffic recovery trajectory.
- Review the specific breakdown of the Ps.4,370 million special dividend payment and its impact on future liquidity.
- Assess the progress of the 7 new post-pandemic routes and their contribution to long-term revenue diversification.