Business Context and Reporting Period
Company: Central North Airport Group (Grupo Aeroportuario del Centro Norte, S.A.B. de C.V.), trading as OMA (NASDAQ: OMAB; BMV: OMA).
Reporting Period: First Quarter 2018 (January 1, 2018 – March 31, 2018).
Business Overview: OMA operates 13 international airports in central and northern Mexico, including major hubs in Monterrey, Culiacán, and Chihuahua. The company also manages hotel services (NH Collection Terminal 2, Hilton Garden Inn) and industrial logistics (OMA Carga, OMA VYNMSA Aero Industrial Park).
Key Financial Metrics
| Metric | 1Q 2018 Value | Currency |
|---|---|---|
| Total Revenues (incl. construction) | 1,932 million | MXN |
| Aeronautical Revenues | 1,204 million | MXN |
| Non-Aeronautical Revenues | 376 million | MXN |
| Adjusted EBITDA | 1,072 million | MXN |
| Adjusted EBITDA Margin | 67.9% | - |
| Operating Income | 945 million | MXN |
| Consolidated Net Income | 610 million | MXN |
| Earnings Per Share (EPS) | 1.55 | MXN |
| Earnings Per ADS | 0.67 | USD |
| Operating Cash Flow | 843 million | MXN |
| Total Debt | 4,612 million | MXN |
| Net Debt | 1,946 million | MXN |
| Cash and Cash Equivalents | 2,666 million | MXN |
| Net Debt / Adjusted EBITDA | 0.48x | - |
| Capital Expenditures (MDP & Strategic) | 423 million | MXN |
Material Changes vs. Prior Period
- Passenger Traffic: Increased 8.0% to 4.9 million passengers. Domestic traffic rose 8.4%, while international traffic grew 5.8%. Growth was driven by 29 net new routes added in the previous six months.
- Revenue Growth: Aeronautical revenues surged 18.7% due to traffic growth and tariff increases in January 2018. Non-aeronautical revenues rose 11.3%, led by car rental (+59.1%) and restaurants (+41.8%).
- Profitability: Adjusted EBITDA increased 23.1% to a record quarterly margin of 67.9%. Consolidated net income jumped 44.0%.
- Costs: Total operating costs increased 13.7%, primarily due to higher construction costs. Excluding construction, operating costs rose only 5.5%.
- Financing: Financing expenses decreased 37.1% to Ps. 91 million, mainly due to reduced exchange losses.
Outlook, Management Commentary, and Risks
- Management Commentary: Management highlighted the success of commercial strategy initiatives, including 10 new commercial openings and a 98.1% occupancy rate for commercial space. The record Adjusted EBITDA margin reflects effective cost control and revenue expansion.
- Dividend Proposal: The Board of Directors proposed a cash dividend of Ps. 1,600 million for shareholder approval at the Annual Ordinary General Shareholders' Meeting on April 23, 2018.
- Corporate Changes: Ruffo Pérez Pliego was appointed as the new Chief Financial Officer on April 3, 2018.
- Investment Activity: Significant capital was deployed in Master Development Programs (MDP), with Ps. 352 million allocated to improvements of concessioned assets.
- Risks: The filing includes standard forward-looking statement disclaimers regarding risks such as economic conditions, regulatory changes, and competition, noting that actual results may differ materially from projections.
Key Facts for Investor Verification
- Record Margins: Verify the sustainability of the 67.9% Adjusted EBITDA margin, the highest in the company's history.
- Dividend Payout: Confirm the approval of the proposed Ps. 1,600 million dividend and its impact on liquidity.
- Debt Structure: Note that 97% of total debt is denominated in Mexican pesos, limiting foreign exchange exposure.
- Construction Accounting: Understand that construction revenues (Ps. 352 million) are non-cash items that offset construction costs and do not impact net income or EBITDA.
- Route Expansion: Assess the long-term impact of the 29 net new routes on future passenger volume and aeronautical revenue.