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: Third quarter and nine months ended September 30, 2009
Business Overview: ASUR operates nine airports in southeast Mexico, including the major Cancún International Airport. The company is the first privatized airport group in Mexico.
Key Financial Metrics
Third Quarter 2009 (3Q09)
- Total Revenues: Ps.714.7 million (down 2.67% YoY)
- EBITDA: Ps.434.8 million (down 1.02% YoY); Margin: 60.83%
- Operating Profit: Ps.278.3 million (down 3.36% YoY); Margin: 38.95%
- Net Income: Ps.170.7 million (down 27.01% YoY)
- Earnings Per Share (EPS): Ps.0.5691 (down 27.01% YoY)
- Passenger Traffic: 3.62 million (down 13.86% YoY)
- Commercial Revenue per Passenger: Ps.55.88 (up 14.88% YoY)
Nine Months 2009 (9M09)
- Total Revenues: Ps.2,377.7 million (down 1.45% YoY)
- EBITDA: Ps.1,521.4 million (down 2.10% YoY); Margin: 63.99%
- Operating Profit: Ps.1,049.1 million (down 4.97% YoY); Margin: 44.12%
- Net Income: Ps.637.9 million (down 24.16% YoY)
- Earnings Per Share (EPS): Ps.2.1264 (down 24.16% YoY)
- Passenger Traffic: 11.86 million (down 14.33% YoY)
Liquidity and Balance Sheet (as of Sept 30, 2009)
- Cash and Marketable Securities: Ps.1,239.3 million (down 30.25% from prior year, impacted by a Ps.1,884 million dividend paid in 2Q09)
- Total Liabilities: Ps.2,803.5 million (16.98% of total assets)
- Shareholder Equity: Ps.13,708.9 million (83.02% of total assets)
- Bank Debt: Ps.604.1 million outstanding under a Ps.750 million credit agreement; Ps.150 million available for additional borrowing.
Material Changes vs. Prior Period
Passenger Traffic Decline: Total traffic fell 13.86% in 3Q09 and 14.33% in 9M09. International traffic dropped 19.01% (3Q09) and 14.13% (9M09), while domestic traffic fell 8.36% (3Q09) and 14.59% (9M09). The decline was driven by the H1N1 influenza outbreak announced in April 2009, which caused severe drops in May (50.7%) and June (28.4%) before recovering slightly in subsequent months.
Revenue Composition: While aeronautical revenues declined due to lower traffic, commercial revenues per passenger increased significantly (14.88% in 3Q09; 22.81% in 9M09). This was driven by growth in car rentals, retail, and teleservices, partially offsetting declines in advertising, food and beverage, and parking fees.
Cost Structure: Operating costs decreased 2.23% in 3Q09 due to lower energy and cleaning costs, though administrative expenses rose 23.52% due to employee reassignments. For 9M09, total costs rose 1.52% due to higher depreciation and professional fees.
Outlook, Risks, and Unusual Items
Recent Strategic Developments
- Cancún Second Runway: Inaugurated October 20, 2009. The project cost approximately US$67 million and doubles the airport's capacity to 28 million passengers annually, allowing simultaneous takeoffs and landings.
- Capital Expenditures: Ps.98.0 million invested in 3Q09 and Ps.195.1 million in 9M09 for airport modernization.
Risks and Contingencies
- H1N1 Impact: The filing explicitly links the significant traffic decline to the H1N1 outbreak, noting the volatility in monthly traffic figures throughout the first half of 2009.
- Taxation: The company recognized Ps.13.4 million in asset taxes in 3Q09 which it does not expect to recover. Provisional tax payments of Ps.39.1 million were made under the IETU regime.
- Regulatory Environment: Revenues are subject to maximum rates set by the Mexican Ministry of Communications and Transportation, which reviews compliance annually.
Investor Verification Checklist
- Verify the sustainability of the 14.88% increase in commercial revenue per passenger as traffic volumes recover.
- Monitor the utilization rate of the new Cancún second runway and its impact on future aeronautical revenue growth.
- Assess the impact of the Ps.1,884 million dividend paid in 2Q09 on future liquidity and capital expenditure funding capabilities.
- Review the trajectory of H1N1-related travel restrictions and their potential lingering effects on international traffic to Mexico.
- Confirm the stability of the Ps.13.4928 exchange rate used for USD conversions against current market rates.