ASUR 4Q17 Passenger Traffic Increased 6.2% YoY in Mexico and Declined 26.9% in San Juan, Puerto Rico and 13.0% in Colombia

February 22, 2018 | By forimmediaterelease.net - | Filed in: Press Releases.

MEXICO CITY, Feb. 22, 2018 /PRNewswire/ — Grupo Aeroportuario del Sureste, S.A.B. de C.V. (NYSE: ASR; BMV: ASUR) (ASUR), a leading international airport group with operations in Mexico, the U.S. and Colombia, today announced results for the three- and twelve-month periods ended December 31, 2017.

4Q17 Highlights

  • Completed acquisition of Airplan, operator of six airports in Colombia, including the Medellín International Airport.
  • Passenger traffic in Mexico increased 6.2% YoY, reflecting increases of 6.3% and 6.2% in domestic and international traffic, respectively. Cancun Airport was the main traffic driver.
  • Traffic at Luis Muñoz Marín (LMM) Airport declined 26.9% YoY, 24.7% in domestic traffic and 41.5% in international traffic, impacted by Hurricane Maria, which hit Puerto Rico in September 2017.
  • Traffic in Colombia (Airplan) fell 13.0% YoY reflecting a decline of 16.6% in domestic traffic mainly impacted by a strike of local pilots at a major carrier, which more than offset an 11.7% increase in international traffic.
  • Consolidated commercial revenues per passenger reached Ps.95.4.
  • Consolidated EBITDA up 44.1% YoY, reaching Ps.1,937.7 million.
  • Closed the quarter with a cash position of Ps.4,461.0 million. Net Debt to LTM EBITDA stood at 1.74x, reflecting consolidation of Aerostar and Airplan.
  • Began operations at Terminal 4 at Cancun Airport.

 

Table 1: Financial & Operational Highlights 1

Fourth Quarter

%
Chg

2016

2017

Financial Highlights

Total Revenue

3,076,590

3,871,744

25.8

– Mexico

3,076,590

2,813,545

(8.5)

– San Juan

0

576,141

n/a

– Colombia

0

482,058

n/a

Commercial Revenues per PAX

96.4

95.4

(1.0)

– Mexico

96.4

103.7

7.6

– San Juan

0

130.0

n/a

– Colombia

0

35.3

n/a

EBITDA

1,344,371

1,937,770

44.1

Net Income

917,506

3,113,847

239.4

Majority Net Income

917,506

2,262,511

146.6

Earnings per Share (in pesos)

3.0584

7.5417

146.6

Earnings per ADS (in US$)

1.5554

3.8355

146.6

Capex

1,007,328

766,160

(23.9)

Cash & Cash Equivalents

3,497,635

4,461,044

27.5

Net Debt

963,142

12,910,354

1,240.4

Net Debt/ LTM EBITDA

0.18

1.74

887.6

Operational Highlights

Passenger Traffic

– Mexico

7,081,385

7,522,050

6.2

– San Juan

2,109,394

1,542,093

(26.9)

– Colombia

2,668,549

2,321,077

(13.0)

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, 2017, and the equivalent three- and twelve-month periods ended December 31, 2016.  On May 26, 2017, ASUR increased its share ownership in Aerostar to 60% from its prior 50% ownership. Accordingly, starting June 1, 2017, ASUR began to fully consolidate Aerostar results on a line by line basis, while until then, results were accounted for the equity method. Furthermore, starting October 19, 2017, ASUR began to consolidate results of Airplan in Colombia. All figures in this report are expressed in Mexican pesos, unless otherwise noted. Tables state figures in thousands of pesos, unless otherwise noted. Passenger figures for Mexico and Colombia exclude transit and general aviation passengers, unless otherwise noted. 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$1.00 = Mexican Ps.19.6629 while Colombian peso figures are calculated at the exchange rate of COL$ 151.86 = Ps. 1.00 Mexican pesos. Definitions for EBITDA, Adjusted EBITDA margin, Majority Net Income can be found on page 15 of this report.  

4Q17 Earnings Call

Date & Time: Friday, Febraury 23, 2018 at 10:00 AM US ET; 9:00 AM CT

Dial-in: 1-800-289-0438 (US & Canada); 1-323-794-2423 (International & Mexico). Access Code: 6702343.

Replay: Friday, February 23, 2018 at 1:00 PM US ET, ending at 11:59 PM US ET on March 2, 2018. Dial-in number: 1-844-512-2921 (US & Canada) 1-412-312-6671 (International & Mexico); Access Code 6702343.

Passenger Traffic

ASUR’s total passenger traffic in 4Q17 declined 4.0% YoY to 11.4 million passengers, as a 6.2% increase in Mexico, was more than offset by declines in traffic of 26.9% in Puerto Rico and 13.0% in Colombia. 

The 6.2% YoY growth in passenger traffic in Mexico reflects increases of 6.3% and 6.2% in domestic and international traffic, respectively. Cancun was the main driver behind traffic growth, reporting increases of 9.6% and 5.8% in domestic and international traffic, respectively with the majority of ASUR’s other Mexican airports also contributing to higher traffic.

Passenger traffic at LMM Airport was impacted by Hurricane Maria which hit Puerto Rico in September 2017. While in October 2017 LMM Airport returned to 70 daily average flights similarly to those reported in 2016, they registered a lower load factor in arrivals. As  result, total passenger traffic at LMM Airport in 4Q17 declined 26.9% YoY, with reductions of 24.7% and 41.5% in domestic and international traffic.

Traffic also reflects the acquisition of Airplan’s six airports in Colombia. While international traffic rose 11.7% YoY in 4Q17, domestic traffic fell 16.6% mainly due to a local pilot strike at a major carrier that began in October 2017.

Tables with detailed passenger traffic information for each airport can be found on page 19 of this report.

Table 2: Passenger Traffic Summary

Fourth Quarter

% Chg.

Twelve-Months

% Chg.

2016

2017

2016

2017

Total Mexico

7,081,385

7,522,050

6.2

28,407,051

31,052,569

9.3

– Cancun

5,234,387

5,605,403

7.1

21,415,795

23,601,509

10.2

– 8 Other Airports

1,846,998

1,916,647

3.8

6,991,256

7,451,060

6.6

Domestic Traffic

3,452,086

3,668,922

6.3

12,957,652

14,310,728

10.4

– Cancun

1,796,241

1,968,462

9.6

6,844,158

7,808,368

14.1

– 8 Other Airports

1,655,845

1,700,460

2.7

6,113,494

6,502,360

6.4

International Traffic

3,629,299

3,853,128

6.2

15,449,399

16,741,841

8.4

– Cancun

3,438,146

3,636,941

5.8

14,571,637

15,793,141

8.4

– 8 Other Airports

191,153

216,187

13.1

877,762

948,700

8.1

Total San Juan, Puerto Rico (1)

2,109,394

1,542,093

(26.9)

9,032,627

8,407,404

(6.9)

Domestic Traffic

1,837,932

1,383,363

(24.7)

7,900,148

7,389,095

(6.5)

International Traffic

271,462

158,730

(41.5)

1,132,479

1,018,309

(10.1)

Total Colombia (2)

2,668,549

2,321,077

(13.0)

10,140,529

10,051,129

(0.9)

Domestic Traffic

2,333,277

1,946,733

(16.6)

8,793,417

8,660,472

(1.5)

International Traffic

335,272

374,344

11.7

1,347,112

1,390,657

3.2

Total Traffic

11,859,328

11,385,220

(4.0)

47,580,207

49,511,102

4.1

Domestic Traffic

7,623,295

6,999,018

(8.2)

29,651,217

30,360,295

2.4

International Traffic

4,236,033

4,386,202

3.5

17,928,990

19,150,807

6.8

1 On May 26, 2017, ASUR increased its ownership stake in LMM Airport from 50% to 60%. ASUR began fully consolidating line by line Aerostar’s operations starting June 1, 2017. For comparison purposes, this table includes traffic figures for LMM Airport for 4Q16 and 4Q17 as well as 12M16 and 12M17.

2 On October 19, 2017, ASUR began to conosolidate Airplan’s operations. For comparison purposes, this table includes traffic figures for Airplan from October 1 through December 31, 2016 and 2017, and accumulated traffic from January 1 through December 31, 2016 and 2017.

 

Note: Passenger figures for Mexico and Colombia exclude transit and general aviation passengers, while LMM Airport includes transit passengers and general aviation.

Review of Consolidated Results

In May 2017, ASUR increased its share ownership in Aerostar to 60% from its prior 50% ownership. Accordingly, until May 31, 2017, ASUR’s ownership in Aerostar was accounted for by the equity method, while starting June 1, 2017, ASUR began to fully consolidate Aerostar results on a line by line basis. In addition, on October 19, 2017, ASUR acquired a 92.42% ownership stake in Airplan, which operates six airports in Colombia, and starting on that date, ASUR began to fully consolidate its operations on a line by line basis.

In accordance with IFRS 3 “Business Combinations”, in 4Q17, ASUR accounted for the result of the valuation of its investment in Aerostar based on its acquisition of an additional 10% ownership stake on May 26, 2017, resulting in ASUR holding a 60% interest in Aerostar.  As a result, ASUR’s financial statements for 4Q17 reflect the following effects: i) in the Income Statement, a gain of Ps.7,029.2 million reported under the line item “Gain from Business Combinations”, partially offset by Ps.98.8 million in amortization of the concession , and Ps.2,811.7 million in recognition off the minority interest in Aerostar; and ii) in the Balance Sheet, the recognition of a net intangible asset for Ps.5,955.0 million,  goodwill for Ps.5,606.3 million, deferred taxes for Ps.605.4 million, and a minority interest of Ps.4,425.5 million in Stockholders’ Equity.

Additionally, ASUR carried out the deterioration test of the long-term assets in accordance with IAS 36, as a result of the effects of Hurricane Maria in Puerto Rico, and determined an impairment Ps.4,719.1 million, which impacted the depreciation and amortization line item in the Income Statement, and reduced goodwill by Ps.4,719.1 million in the Balance Sheet.

Consolidated Revenues

Table 3: Summary of Consolidated Results

Fourth Quarter

% Chg

Twelve Months

% Chg

2016

2017

2016

2017

Total Revenues

3,076,590

3,871,744

25.8

9,753,491

12,513,893

28.3

Aeronautical Services

1,139,120

1,896,499

66.5

4,532,194

6,484,219

43.1

Non-Aeronautical Services

773,946

1,151,103

48.7

3,104,343

4,261,383

37.3

– Commercial Revenues

687,251

1,053,170

53.2

2,772,544

3,877,530

39.9

Total Revenues Excluding Construction Revenues

1,913,066

3,047,602

59.3

7,636,537

10,745,602

40.7

Construction Revenues

1,163,524

824,142

(29.2)

2,116,954

1,768,291

(16.5)

Total Operating Costs & Expenses

1,872,222

7,296,191

289.7

4,820,892

11,037,060

128.9

Operating Profit

1,204,368

3,424,447

(384.3)

4,932,599

1,476,833

(70.1)

Operating Margin

39.1%

(88.4%)

n.m

50.6%

11.8%

(3877 bps)

Adjusted Operating Margin (1)

63.0%

(112.4%)

n.m

64.6%

13.7%

(5085 bps)

EBITDA

1,344,371

1,937,770

44.1

5,471,965

7,413,527

35.5

EBITDA Margin

43.7%

50.0%

635 bps

56.1%

59.2%

314 bps

Adjusted EBITDA Margin (2)

70.3%

63.6%

(669 bps)

71.7%

69.0%

(266 bps)

Net Income

917,506

3,113,847

239.4

3,629,262

6,750,165

86.0

Majority Net Income

917,506

2,262,511

146.6

3,629,262

5,834,484

60.8

Earnings per Share

3.0584

7.5417

146.6

12.0975

19.4483

60.8

Earnings per ADS in US$

1.5554

3.8355

146.6

6.1525

9.8909

60.8

Total Commercial Revenues per Passenger (3)

96.4

95.4

(1.0)

96.9

102.8

6.1

Commercial Revenues from Direct Operations per
Passenger (4)

15.8

17.6

11.9

15.4

18.6

20.9

Commercial Revenues Excl. Direct Operations per Passenger

80.6

77.8

(3.5)

81.5

84.2

3.3

1 Adjusted Operating Margin excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets in Mexico and Colombia and is equal to operating profit divided by total revenues less construction services revenues.

 

2 Adjusted EBITDA Margin excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets in Mexico and Colombia and is calculated by dividing EBITDA by total revenues less construction services revenues.

3 Includes transit and general aviation passengers for Mexico, Puerto Rico and Colombia.

 

4 Represents ASUR’s operation of convenience stores in its airports.

Consolidated Revenues for 4Q17 increased 25.8% YoY to Ps.3,871.7 million, mainly as a result of the following increases:

  • 65.5% in revenues from aeronautical services to Ps.1,896.5 million, principaly due to the increase in revenues from aeronautical services in Mexico, along with the benefit of Ps.373.2 million in aeronautical revenues from Aerostar and Ps.225.7 million from Colombia in 4Q17; and
  • 48.7% in revenues from non-aeronautical services to Ps.1,151.1 million, principally reflecting the 53.2% increase in commercial revenues. Non-aeronautical services revenues for 4Q17 include the contributions of Ps.202.9 million from Aerostar and Ps.69.1 million from Airplan in Colombia.

This was partially offset by a 29.2% decline in revenues from construction services in Mexico and Colombia as a result of lower capital expenditures and other investments in concessioned assets during the period.

Excluding revenues from construction services, which are deducted as costs under IRFS accounting standards, total revenues would have increased 59.3% YoY to Ps.3,047.6 million. Total revenues at Aerostar and Colombia for 4Q17 represented 18.9% and 9.7%, respectively of ASUR’s consolidated revenues excluding revenues from construction services.

Commercial Revenues in 4Q17 rose 53.2% YoY, principally due to the 6.0% increase in total passenger traffic in Mexico, along with the contribution of Ps.200.5 million and Ps.68.2 million in commercial revenues at LMM Airport and Colombia, respectively for 4Q17. Commercial revenues in Mexico rose 14.1%, mainly driven by increases in Duty Free, Food and Beverages, and Retail mainly reflecting the opening on Terminal 4 at Cancun Airport during 4Q17.

Commercial Revenues per Passenger declined to Ps.95.4 in 4Q17, from Ps.96.4 in 4Q16, with Mexico contributing with Ps.103.7, LMM Airport with Ps.130.0 and Colombia with Ps.35.3 revenues per passenger in 4Q17.

Consolidated Operating Costs and Expenses

Consolidated Operating Costs and Expenses, including construction costs, for 4Q17 increased 289.7% YoY to Ps.7,296.2 million, mainly impacted by the recognition of a US$250.4 million impairment in long-term assets as a result of Hurricane Maria, in Puerto Rico. Excluding construction costs, operating costs and expenses rose 805.6% to Ps.6,417.7 million.

Cost of Services increased 119.3%, as 4Q17 includes expenses of Ps.293.3 million and Ps.128.0 million for Puerto Rico and Colombia, respectively, reflecting the consolidation of those operations. Higher maintenance expenses, as well as opening costs at Terminal 4 in Cancun airport, along with higher cost of sales from convenience stores directly operated by ASUR, increased energy, security and professional fees, also contributed to the increase in cost of services.

Construction Costs declined 24.5% YoY to Ps.878.5 million, mainly due to lower levels of capital improvements made to the concessioned assets during the period. Mexico contributed with Ps.636.8 million in construction costs during 4Q17 and Colombia Ps.241.6 million.

G&A Expenses, which reflect administrative expenses in Mexico, declined 9.5% YoY.

Consolidated Technical Assistance increased 17.8% YoY, mainly reflecting EBITDA growth in Mexico excluding extraordinary items, a factor in the calculation of the fee.

Concession fees rose 81.5%, mainly reflecting higher fees paid to the Mexican government, mainly due to an increase in regulated revenues in Mexico, a factor in the calculation of the fee. Concession fees for 4Q17 also include fees paid to Puerto Rico and Colombian authorities in the quarter.

Depreciation and Amortization increased 3,830.3%, principally due to the US$250.4 million impairment in long-term assets as a result of the impact of Hurricane Maria in Puerto Rico, as well as the recognition of Ps.98.8 million in amortization of the intangible asset resulting from the valuation of the investment in Aerostar, as well as the inclusion of depreciation in Colombia starting 4Q17, which amounted to Ps.55 million.

Consolidated Operating Profit and EBITDA

In 4Q17 ASUR reported a Consolidated Operating Loss of Ps.3,424,4 million, and Operating Margin was negative 88.4%, mainly as a result of the US$250.4 million impairment in long-term assets as a result of the impact of Hurricane Maria in Puerto Rico, as well as the recognition of Ps.98.8 million in amortization of the intangible asset resulting from the valuation of the investment in Aerostar.

Adjusted Operating Margin, which excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets in Mexico and Colombia, is calculated as operating profit divided by total revenues less construction services revenues; and was negative 112.4% in 4Q17 compared with positive 63.0% in 4Q16.

EBITDA rose 44.1% to Ps.1,937.7 million in 4Q17, with Aerostar contributing with Ps.307.6 million in EBITDA, and Colombia with Ps.55.8 million, equivalent to 15.9% and 2.8% of consolidated EBITDA, respectively. Mexican operations reported a 17.1% YoY increase in EBITDA during the quarter. During 4Q17, ASUR recognized Ps.824.1 million in Construction Revenues, a year-on-year decline of 29.2%, due to lower capital expenditures and investments in concessioned assets. As a result, 4Q17 EBITDA Margin was 50.0% compared to 43.7% in 4Q16.

Adjusted EBITDA Margin, which excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets in Mexico and Colombia was 63.6% in 4Q17 compared to 70.3% in 4Q16.

Consolidated Comprehensive Financing Gain (Loss)

Table 4: Consolidated Comprehensive Financing Gain (Loss)

Fourth Quarter

% Chg

Twelve -Months

% Chg

2016

2017

2016

2017

Interest Income

55,576

81,834

47.2

184,569

245,787

33.2

Interest Expense

(33,075)

(299,947)

806.9

(126,186)

(618,831)

390.4

Foreign Exchange Gain (Loss), Net

(23,871)

90,686

n.m.

(103,852)

141,210

n.m.

Total

(1,370)

(127,427)

9,201.2

(45,469)

(231,834)

409.9

In 4Q17, ASUR reported a Ps.127.4 million Comprehensive Financing Loss, compared to a Ps.1.4 million loss in 4Q16. Interest expense rose by Ps.266.9 million during the period, reflecting mainly a higher debt balance resulting from the consolidation of Aerostar and Airplan. Aerostar’s interest expenses for 4Q17 amounted to Ps.130.5 million, while Airplan contributed Ps.33.1 million in interest expenses. Interest income increased by Ps.26.3 million, as a result of a higher cash balance and the increase in interest rates.

In 4Q17, ASUR reported a foreign exchange gain of Ps.90.7 million, resulting from 4.5% quarterly average depreciation of the Mexican peso against the U.S. dollar on ASUR’s foreign currency net asset position. This compared to a Ps.23.9 million foreign exchange loss in 4Q16 resulting from the 3.5% quarterly average Mexican peso depreciation during that period over a lower foreign currency net liability position.

Income Taxes

Income Taxes for 4Q17 rose by Ps.70.9 million year-over-year, principally due to the following factors:

  • A Ps.116.8 million increase in the provision for income taxes, mainly reflecting a higher taxable income base at Cancun Airport along with the consolidation of Airplan in Colombia starting this quarter; and
  • A Ps.45.9 million decline in deferred income taxes, largely reflecting the recognition of the effects of the 2.26% increase in inflation during 4Q17 on the fiscal tax balance. The consolidation of Airplan, starting October 19, 2017, resulted in the recognition of a benefit from deferred income tax of Ps.9.3 million offset by deferred income taxes of Ps.12.7 million from Puerto Rico, which is fully consolidated since June 1, 2017.

Majority Net Income

Majority Net Income for 4Q17 increased by 146.6% to Ps.2,262.5 million, up from Ps.917.5 million in 4Q16. Earnings per common share for the quarter were Ps.7.5417 and earnings per ADS (EPADS) were US$3.8355 (one ADS represents ten series B common shares). This compares with earnings per share of Ps.3.0584 and EPADS of US$1.5554 for the same period last year.

Consolidated Financial Position

On December 31, 2017, airport concessions represented 83.7% of the Company’s total assets, goodwill represented 5.4%, with current assets representing 10.0% and other assets representing 0.9%.

As of December 31, 2017, ASUR had cash and cash equivalents of Ps.4,461.0 million; a 27.5% increase from Ps.3,497.6 million at December 31, 2016. Aerostar contributed with Ps.436.8 million in cash and cash equivalents in 4Q17 and Airplan with Ps.42.3 million.

Stockholders’ equity at the close of 4Q17 was Ps.33,535.0 million and total liabilities were Ps.22,031.0 million, representing 60.4% and 39.6% of total assets, respectively. Deferred liabilities represented 12.5% of ASUR’s total liabilities.

Total Debt at year-end increased to Ps.17,371.4 million, from Ps.4,460.74 million in 4Q16, principally reflecting the consolidation of debt at Aerostar and Airplan as shown on Tables 5 and 6, as well as the Ps.4,000 million loan at Cancun Airport. A total of Ps.10,342.4 million of ASUR’s debt, or 59.5% of total debt, is denominated in U.S. dollars, Ps.4,008.9 million, or 23.1%, in Mexican Pesos, and Ps.3,020.1 million, or 17.4%, of the total is denominated in Colombian pesos.

The Net Debt to LTM EBITDA ratio stood at 2.3x at the end of 4Q17, while the Interest Coverage ratio was 9.8x as of December 31, 2017. This compares with Net Debt to LTM EBITDA and Interest Coverage Ratios of 0.8x and 39.1x as of December 31, 2016, respectively.

 

Table 5: Consolidated Debt Indicators

December 31, 2016

September 30, 2017

December 31, 2017

Leverage

Total Debt/ LTM EBITDA (Times) 1

0.8

2.2

2.3

Total Net Debt/ LTM EBITDA (Times) 2

0.2

1.0

1.7

Interest Coverage Ratio 3

39.1

8.8

9.8

Total Debt

4,460,777

14,712,448

17,371,398

Short-term Debt

58,336

4,053,751

173,471

Long-term Debt

4,402,440

10,658,697

17,197,927

Cash & Cash Equivalents

3,497,635

7,678,970

4,461,044

Total Net Debt 4

963,142

7,033,478

12,910,354

1 The Total Debt to EBITDA Ratio is calculated as ASUR’s interest-bearing liabilities divided by its EBITDA.

2 The Total Net Debt to EBITDA Ratio is calculated as ASUR’s interest-bearing liabilities minus Cash & Cash Equivalents, divided by its     EBITDA.

3 The Interest Coverage Ratio is calculated as ASUR’s EBIT divided by its interest expenses.

4 The Total Net Debt is calculated as Total Debt minus Cash & Cash Equivalents.

Table 6: Consolidated Debt Profile (US$ millions)

Airport

Payment of principal

Currency

Interest Rate

Amortization Schedule

2017

2018

2019

2020

2021 /23

2024 /35

Total

 5 Yr-Syndicated Credit Facility

 Cancun

 Bullet

 $Usd

Libor + 1.5250%

72.5

72.5

 5 Yr-Syndicated Credit Facility

 Cancun

 Bullet

 $Usd

Libor + 1.4500%

72.5

72.5

 5 Yr-Syndicated Credit Facility

 Cancun

 Bullet

 $PMx

 Tiie + 1.25%

2,000.0

2,000.0

 7 Yr-Syndicated Credit Facility

 Cancun

 Semi-Annual Amort.

 $PMx

 Tiie + 1.25%

20.0

1,860.0

120.0

2,000.0

 22 Yr-Senior Note 2035

 San Juan

 Semi-Annual Amort.

 $Usd

5.75%

5.2

5.8

5.2

5.3

17.1

162.9

201.5

 20 Yr-Senior Note 2035

 San Juan

 Semi-Annual Amort.

 $Usd

6.75%

5.7

5.1

5.2

5.3

18.3

153.8

193.4

 10 Yr-Syndicated Credit Facility

 Colombia

 Qtly. Amort.

 $Pcol

DTF1 + 4

3,750.0

9,000.0

12,000.0

44,250.0

81,000.0

150,000.0

 10 Yr-Syndicated Credit Facility

 Colombia

 Qtly. Amort.

 $Pcol

DTF1 + 4

2,550.0

6,120.0

8,160.0

30,090.0

55,080.0

102,000.0

 10 Yr-Syndicated Credit Facility

 Colombia

 Qtly. Amort.

 $Pcol

DTF1 + 4

2,250.0

5,400.0

7,200.0

26,550.0

48,600.0

90,000.0

 10 Yr-Syndicated Credit Facility

 Colombia

 Qtly. Amort.

 $Pcol

DTF1 + 4

925.0

2,220.0

2,960.0

10,915.0

19,980.0

37,000.0

 10 Yr-Syndicated Credit Facility

 Colombia

 Qtly. Amort.

 $Pcol

DTF1 + 4

925.0

2,220.0

2,960.0

10,915.0

19,980.0

37,000.0

 10 Yr-Syndicated Credit Facility

 Colombia

 Qtly. Amort.

 $Pcol

DTF1 + 4

200.0

480.0

640.0

2,360.0

4,320.0

8,000.0

 10 Yr-Syndicated Credit Facility

 Colombia

 Qtly. Amort.

 $Pcol

DTF1 + 4

200.0

480.0

640.0

2,360.0

4,320.0

8,000.0

 10 Yr-Syndicated Credit Facility

 Colombia

 Qtly. Amort.

 $Pcol

DTF1 + 4

200.0

480.0

640.0

2,360.0

4,320.0

8,000.0

 1 Yr-Treasury

 Colombia

 Anual

 $Pcol

IBR2 + 2.6

5,000.0

5,000.0

 1 Yr-Treasury

 Colombia

 Anual

 $Pcol

IBR2 + 2.6

14,984.0

14,984.0

 

1 DTF is an average 90-day rate with which the credits in Colombia are subscribed

2 IBR is a rate that banks offer for short-term bank loans

Capital Expenditures

During 4Q17, ASUR made capital investments for a total of Ps.766.2 million. Of this, Ps.464.9 million relate to the Company’s plan to modernize its Mexican airports pursuant to its master development plans, mainly for the construction of Cancun’s Terminal 4, currently in operation. In addition, during 4Q17, Aerostar invested Ps.89.3 million at LMM Airport and Airplan made investments for a total of Ps.211.9 million in Colombia. Accumulated consolidated capex for FY17 amounted to Ps.1,471.4 million.

Review of Mexico Operations

Table 7: Mexico Revenues & Commercial Revenues Per Passenger

Fourth Quarter

% Chg

Twelve-Months

% Chg

2016

2017

2016

2017

Total Passenger

7,131

7,562

6.0

28,622

31,227

9.1

Total Revenues

3,076,590

2,813,545

(8.5)

9,753,491

10,610,203

8.8

Aeronautical Services

1,139,120

1,297,568

13.9

4,532,194

5,319,484

17.4

Non-Aeronautical Services

773,946

879,129

13.6

3,104,343

3,709,722

19.5

– Commercial Revenues

687,251

784,434

14.1

2,772,544

3,331,642

20.2

Construction Revenues

1,163,524

636,847

(45.3)

2,116,954

1,580,997

(25.3)

Total Revenues Excluding Construction Revenues

1,913,066

2,176,697

13.8

7,636,537

9,029,206

18.2

Total Commercial Revenues

687,251

784,434

14.1

2,772,544

3,331,642

20.2

Commercial Revenues from Direct Operations

112,362

156,270

39.1

439,410

596,066

35.7

Commercial Revenues Excluding Direct Operations

574,889

628,164

9.3

2,333,134

2,735,576

17.2

Total Commercial Revenues per Passenger

96.4

103.7

7.6

96.9

106.7

10.1

Commercial Revenues from Direct Operations per Passenger 1

15.8

20.7

31.2

15.4

19.1

24.4

Commercial Revenues Excl. Direct Operations per Passenger

80.6

83.1

3.1

81.5

87.6

7.5

Note: For purposes of this table, approximately 50.0 and 40.3 thousand transit and general aviation passengers are included in 4Q16 and 4Q17, respectively, while 214.9 and 174.1 thousand transit and general aviation passengers are included in FY16 and FY17.

1Represents ASUR’s operation of convenience stores in airports as well as advertising since September 2017.

Mexico Revenues

Mexico Revenues for 4Q17 declined 8.5% YoY to Ps.2,813.5 million, principally due to the 45.3% reduction in revenues from construction services that resulted from lower capital expenditures and other investments in concessioned assets during the period.

Excluding construction, revenues rose 13.8% YoY reflecting the following increases:

  • 13.9% in revenues from aeronautical services, mainly due to the 6.2% increase in passenger traffic; and
  • 13.6% in revenues from non-aeronautical services, principally reflecting the 14.1% growth in commercial revenues detailed below.

Commercial Revenues in the quarter rose 14.1% year-over-year, mainly reflecting the 6.0% increase in total passenger traffic (including transit and general aviation passengers) and reported increases across all categories as shown on table 8.

Commercial Revenues per Passenger, in turn, increased 7.6% to Ps.103.7 in 4Q17 from Ps.96.4 in 4Q16.

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.

As shown in table 9, during the last 12 months, ASUR opened 64 new commercial spaces at its new Terminal 4 at Cancun Airport and three commercial spaces at its other eight airports. More details of these openings can be found on pages 20 and 21 of this report.

Table 8: Mexico Commercial Revenues

Table 9: Mexico Summary Retail and Other Commercial Space Opened since December 31,2016

Business Line (1)

YoY Chg.

Type of Commercial Space (1)

# of  spaces opened

4Q17

2017

Duty Free

27.1%

31.1%

Cancun

64

Food and Beverage Operations

8.6%

24.2%

Retail

27

Retail Operations

18.6%

17.2%

Car Rental

13

Car Rental Revenues

6.2%

14.3%

Ground Transportation

4

Advertasing Revenues

(4.3%)

6.8%

Food and Beverage Operations

16

Banking and Currency Exchange Services

(13.9%)

10.9%

Other Revenues

3

Ground Transportation

0.1%

8.5%

Duty Free

1

Teleservices

1.6%

16.6%

8 Others Airport

3

Parking Lot Fees

(6.5%)

(1.5%)

Bank and Foreign

1

Other Revenues

11.0%

20.3%

VIP Lounge

2

Total Commercial Revenues

14.1%

20.2%

Mexico

67

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

Mexico Operating Costs and Expenses

Table 10: Mexico Operating Costs & Expenses

Fourth Quarter

%
Chg

Twelve-Months

% Chg

2016

2017

2016

2017

Cost of Services

365,310

379,830

4.0

1,336,386

1,525,521

14.2

Administrative

50,722

45,892

(9.5)

204,842

204,418

(0.2)

Technical Assistance

70,793

82,771

16.9

288,111

345,854

20.0

Concession Fees

86,241

97,833

13.4

344,939

406,734

17.9

Depreciation and Amortization

135,632

4,964,964

3,560.6

529,660

5,382,156

916.2

Operating Costs and Expenses Excluding Construction Costs

708,698

5,571,290

686.1

2,703,938

7,864,683

190.9

Construction Costs

1,163,524

636,847

(45.3)

2,116,954

1,580,997

(25.3)

Total Operating Costs & Expenses

1,872,222

6,208,137

231.6

4,820,892

9,445,680

95.9

Total Mexico Operating Costs and Expenses for 4Q17 increased 231.6% year-over-year. This includes construction costs, which fell 45.3%, reflecting lower levels of capital improvements made to concessioned assets during the period. Excluding construction costs, operating costs and expenses increased 686.1% to Ps.5,571.3 million, impacted by the US$240.0 million impairment in long-term assets as a result of the impact of Hurricane Maria, in Puerto Rico, as well as the recognition of Ps.98.8 million in amortization of the intangible asset resulting from the valuation of the investment in Aerostar.

Cost of Services rose 4.0% mainly due to higher energy, security and maintenance expenses. Higher cost of sales from convenience stores directly operated by ASUR, including those opened at Terminal 4 at Cancun Airport, and professional fees in connection with several projects also contributed to the increase in cost of services.  Administrative expenses declined by 9.5% YoY.

The 16.9% increase in Technical Assistance fee paid to ITA reflects EBITDA growth in Mexico, excluding extraordinary items in the quarter, a factor in the calculation of the fee.

Concession fees, which include fees paid to the Mexican government, rose 13.4%, mainly due to an increase in regulated revenues, a factor in the calculation of the fee.

Depreciation and Amortization increased 3,560.6% YoY, impacted by the US$240.0 million impairment in long-term assets as a result of the impact of Hurricane Maria, in Puerto Rico, as well as the recognition of Ps.98.8 million in amortization of the intangible asset resulting from the valuation of the investment in the subsidiary in Puerto Rico.

Mexico Consolidated Comprehensive Financing Gain (Loss)

Table 11: Mexico Comprehensive Financing Gain (Loss)

Fourth Quarter

%
Chg

Twelve-Months

% Chg

2016

2017

2016

2017

Interest Income

55,576

92,280

66.0

184,569

272,367

47.6

Interest Expense

(33,075)

(147,452)

345.8

(126,186)

(317,141)

151.3

Foreign Exchange Gain (Loss), Net

(23,871)

90,737

n.m.

(103,852)

141,261

n.m.

Total

(1,370)

35,565

n.m.

(45,469)

96,487

n.m.

In 4Q17, ASUR’s Mexico operations reported a Ps.35.6 million Comprehensive Financing Gain, compared to a Ps.1.4 million loss in 4Q16. This was mainly due to a foreign exchange gain in 4Q17 of Ps.90.7 million, reflecting a 4.5% quarterly average depreciation of the Mexican peso against the U.S. dollar on ASUR’s foreign currency net asset position. This compared to a Ps.23.9 million foreign exchange loss in 4Q16, resulting from the 3.2% quarterly average Mexican peso depreciation during that period and a lower foreign currency net liability position.

Interest income in Mexico increased by 66.0% YoY to Ps.92.3 million in 4Q17, reflecting a higher cash balance and interest rates, while interest expense rose by 345.8% to Ps.147.4 million during the period, reflecting the incurrence of Ps.4,000 million in Peso-denominated loans during the period.

Mexico Operating Profit and EBITDA

Table 12: Mexico Operating Profit & EBITDA

Fourth Quarter

% Chg

Twelve-Months

% Chg

2016

2017

2016

2017

Total Revenue

3,076,590

2,813,545

(8.5)

9,753,491

10,610,203

8.8

Total Revenues Excluding Construction Revenues

1,913,066

2,176,697

13.8

7,636,537

9,029,206

18.2

Operating Profit

1,204,368

(3,394,592)

(381.9)

4,932,599

1,164,523

(76.4)

Operating Margin

39.1%

(120.7%)

n.m

50.6%

11.0%

(3960 bps)

Adjusted Operating Margin 1

63.0%

(156.0%)

n.m

64.6%

12.9%

(5169 bps)

Net Income 3

917,506

3,186,551

247.3

3,629,262

6,758,526

86.2

EBITDA

1,344,371

1,574,365

17.1

5,471,965

6,570,705

20.1

EBITDA Margin

43.7%

56.0%

1226 bps

56.1%

61.9%

583 bps

Adjusted EBITDA Margin 2

70.3%

72.3%

206 bps

71.7%

72.8%

112 bps

1 Adjusted Operating Margin excludes the effect of IFRIC 12 with respect to the construction of 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 IFRIC 12 with respect to the construction of or improvements to concessioned assets and is   calculated by dividing EBITDA by total revenues less construction services revenues.

3 Net Income for 4Q17 includes a loss of Ps.143.1 million from the participation in the results of subsidiaries Aerostar (PR) and Airplan (Colombia) recognized under the equity method. Net Income for FY17 includes a loss of Ps.46.5 million from the participation in results of subsidiaries Aerostar (PR) and Airplan (Colombia) recognized under the participation method. Accumulated net income also includes Ps.112.3 million in 2017 and Ps. 144.2 million in 2016 from the joint participation in the business with Aerostar.

In 4Q17 Mexico reported an Operating Loss of Ps.3,394.6 million, resulting in a negative 120.7% Operating Margin compared with positive 39.1% in 4Q16, mainly impacted by the impairment in long-term assets.

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 negative 156.0% in 4Q17.

EBITDA increased 17.1% to Ps.1,574.4 million from Ps.1,344.4 million in 4Q16, reflecting higher operating leverage. EBITDA Margin expanded to 56.0% from 43.7% in 4Q16.

During 4Q17, ASUR recognized Ps.636.8 million in “Construction Revenues,” a year-on-year decline of 45.3%, due to lower capital expenditures and investments in concessioned assets. Adjusted EBITDA Margin, which excludes the effect of IFRIC 12 with respect to the construction of or improvements to concessioned assets, increased 206 bps to 72.3%.

Mexico 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 accumulated regulated revenues at its Mexican operations as of December 31, 2017 totaled Ps.5,579.09 million, with an average tariff per workload unit of Ps.171.94 (pesos of December 2016). ASUR’s regulated revenues for FY17 accounted for approximately 61.79% of total Mexico income (excluding construction income) for the period.

The Mexican Ministry of Communications and Transportation reviews compliance with maximum rate regulations at the close of each year.

Review of Puerto Rico Operations

In May 2017, ASUR increased its share ownership in Aerostar to 60% from its prior 50% ownership. Accordingly, consolidated results as presented above reflect line by line consolidation of Aerostar results starting in June 1, 2017, while prior to that, Aerostar’s results were accounted for by the equity method.

The following discussion compares the stand-alone results of Aerostar for the three-month period ended December 31, 2017 (in which Aerostar was consolidated with ASUR) against the three-month period ended December 31, 2016 (in which Aerostar was not consolidated with ASUR and instead was accounted for by the equity method).   ASUR is not presenting results for the twelve-month periods ended December 31, 2017 and 2016 as the Company did not consolidate Aerostar during the totality of this period.

Table 13: Puerto Rico Revenues & Commercial Revenues Per Passenger

(in thousands of Mexican pesos)

Fourth Quarter

% Var

2016

2017

 Not Consolidated

Consolidated

Total Passenger

2,109

1,542

(26.9)

Total Revenues

599,748

576,141

(3.9)

Aeronautical Services

393,689

373,238

(5.2)

Non-Aeronautical Services

206,058

202,903

(1.5)

– Commercial Revenues

203,535

200,494

(1.5)

Total Commercial Revenues

203,535

200,494

(1.5)

Commercial Revenues from Direct Operations

44,499

38,263

(14.0)

Commercial Revenues Excluding Direct Operations

159,036

162,231

2.0

Total Commercial Revenues per Passenger

96.49

130.0

34.7

Commercial Revenues from Direct Operations per Passenger 1

21.1

24.8

17.6

Commercial Revenues Excl. Direct Operations per Passenger

75.4

105.2

39.5

1Represents ASUR’s operation of convenience stores in LMM Airport.

Note: Figures in pesos at an average exchange rate of Ps.18.9795

Puerto Rico Revenues

Total Puerto Rico Revenues for 4Q17 fell 3.9% YoY to Ps.576.1 million, mainly reflecting the impact of Hurricane Maria which hit Puerto Rico in September 2017 and resulted in the following declines:

  • 1.5% in revenues from non-aeronautical services, principally reflecting the 1.5% decline in commercial revenues; and
  • 5.2% in revenues from aeronautical services reflecting a decline in aeronautical operations as a result of Hurricane Maria.

Commercial Revenues per Passenger rose to Ps.130.0 from Ps.96.5 in 4Q16.

Two commercial spaces were opened at LMM Airport in 4Q17, with eight new commercial spaces opened during FY17 as shown on Table 15. More details of these openings can be found on page 21 of this report.

ASUR classifies commercial revenues as those derived from the following activities: duty-free stores, car rentals, retail operations, advertising, non-permanent ground transportation, food and beverage operations and parking lot fees.

Table 14: San Juan Airport Commercial Revenue Performance

Table 15: San Juan Airport Summary Retail and Other Commercial Space Opened since December 31, 2016

Business Line

YoY Chg

Type of Commercial Space 1

# of Spaces Opened

4Q17

Parking Lot Fees

10.2%

Retail

1

Car Rental Revenues

7.4%

Food & Beverage

2

Food and Beverage Operations

6.7%

Car Rental

1

Other Revenue

(2.3%)

Other Revenue

4

Duty Free

(8.5%)

Total Commercial Spaces

8

Retail Operations

(15.2%)

Advertising Revenues

(41.6%)

Ground Transportation

(55.8%)

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

Total Commercial Revenues

(1.5%)

Puerto Rico Operating Costs and Expenses

Table 16: Puerto Rico Operating Costs and Expenses

(in thousands of Mexican pesos)

Fourth Quarter

% Chg

2016

2017

 Not Consolidated

Consolidated

Cost of Services

304,641

293,304

(3.7)

Concession Fees

2,604

2,662

2.2

Depreciation and Amortization

115,548

310,812

169.0

Total Operating Costs & Expenses

422,793

606,778

43.5

Note: Figures in pesos at an average exchange rate of Ps.18.9795

Total Operating Costs and Expenses at LMM Airport in 4Q17 increased 43.5% YoY to Ps.606.8 million.

Cost of Services declined 3.7% YoY, driven by lower energy, professional fees, insurance, maintenance, lower water consumption as well as income from water services which started to be charged to concessionaires. Concession Fees, which include fees paid to the Puerto Rican government, rose 2.2%.

Depreciation and Amortization increased 169.0%, mainly impacted by the US$10.4 million impairment in long-term assets caused by the damage from Hurricane Maria.

In accordance with the application of IFRIC 12, Aerostar recognizes on a monthly basis the provision for maintenance of those concession assets that will be replaced before the end of the concession. The monthly amount is Ps.6.2 million.

Puerto Rico Comprehensive Financing Gain (Loss)

Table 17: Puerto Rico Comprehensive Financing Gain

(in thousands of Mexican pesos)

Fourth Quarter

% Chg

2016

2017

 Not Consolidated

Consolidated

Interest Income

15

10

(33.3)

Interest Expense

(149,013)

(130,484)

(12.4)

Total

(148,998)

(130,474)

(12.4)

Note: Figures in pesos at an average exchange rate of Ps.18.9795

During 4Q17, LMM Airport reported a Ps.130.5 million Comprehensive Financing Loss, compared with a Ps.149.0 million loss in 4Q16.

On February 22, 2013, and as part of the financing of the Concession Agreement, Aerostar entered into a subordinated term loan with Cancun Airport in the amount of US$100 million at an annual interest rate of LIBOR plus 2.10%, payable each July 1 and January 1, and with no fixed maturity date. As of December 31, 2017, the remaining balance is US$61.1 million.

On March 22, 2013, Aerostar carried out a private bond placement for a total of US$350 million to finance a portion of the Concession Agreement payment to the Puerto Rican Authority and certain other costs and expenditures associated with it.

On June 24, 2015, Aerostar carried out a private bond placement for a total of US$50 million. In December 2015, Aerostar also contracted a line of revolving credit, which, as of December 31, 2017, had not been utilized.

All long-term debt is collateralized by Aerostar’s total assets.

Puerto Rico Operating Profit and EBITDA

Table 18: San Juan Airport Operating Profit & EBITDA

(in thousands of Mexican pesos)

Fourth Quarter

% Chg

2016

2017

 Not Consolidated

Consolidated

Total Revenue

599,747

576,141

(3.9)

Operating Profit

176,954

(30,637)

n/a

Operating Margin

29.5%

(5.3%)

n.m.

Net Income

14,165

(173,814)

n.m.

EBITDA

292,503

307,631

5.2

EBITDA Margin

48.8%

53.4%

 462 bps

Note: Figures in pesos at an average exchange rate of Ps.18.9795

In 4Q17 Puerto Rico operations reported an Operating Loss of Ps.30.6 million, with Operating Margin down to negative 5.3% from 29.5% in 4Q16, principally reflecting the 169% increase in depreciation and amortization from the damages resulting from Hurricane Maria as explained above.

EBITDA rose 5.2% to Ps.307.6 million from Ps.292.5 million in 4Q16 despite the decline in passenger traffic, principally reflecting cost savings during the period. EBITDA Margin rose 462 bps to 53.4% in 4Q17.

Puerto Rico Capital Expenditures

During 4Q17, Aerostar invested Ps.89.3 million to modernize LMM Airport, mainly for the construction of the Federal Inspection Station and in equipment for LMM’s operations. This compares with investments of Ps.53.2 million in 4Q16.

Puerto Rico Tariff Regulation

The Airport Use Agreement signed by Aerostar, the airlines serving LMM Airport, and the Puerto Rico Port Authority governs the relationship between Aerostar and the principal airlines serving LMM Airport. The agreement entitles Aerostar to an annual contribution from the airlines of US$62 million during the first five years of the term. From year six onwards, the total annual contribution for the prior year will increase in accordance with an adjusted consumer price index factor based on the U.S. non-core consumer price index. The annual fee is divided between the airlines that operate at LMM Airport in accordance with the regulations and structure defined under the Airport Use Agreement to establish the contribution of each airline for each particular year.

Impact from Hurricane Maria

On September 20, 2017, Hurricane Maria, a category 4 hurricane, made landfall on Puerto Rico. Operations at LMM Airport were suspended on September 19 and resumed on a limited basis on September 21, 2017. As of December 31, 2017, LMM Airport has regained its capacity for normal management of airport operations. Damages to airport infrastructure are being evaluated by Management and its insurance company and a reasonable estimate is not yet available.  Aerostar is insured for infrastructure damage as well as loss of direct income due to such damage. The insurance contract establishes a maximum deductible of US$ 10.0 million.

Review of Colombia Operations

On October 19, 2017, ASUR acquired a 92.42% ownership stake in Airplan, which operates six airports in Colombia. Therefore, ASUR began to consolidate Airplan’s results on a line by line basis as of that date.

The following discussion compares Airplan’s independent results for the period starting October 19 and ended December 31, 2017 (in which Airplan was consolidated with ASUR) against the three-month period starting October 19, 2016 and ended December 31, 2016 (in which Airplan was not consolidated with ASUR).  

As a result of the acquisition of Airplan, ASUR reported goodwill of Ps.2,120.1 million in 4Q17. In line with IFRS 3, there is a one-year term to determine the final purchase price of this acquisition and consequently, the amount of this goodwill could change.

Table 19 : Colombia Revenues & Commercial Revenues Per Passenger

(in thousands of Mexican pesos)

Fourth Quarter

% Chg

2016

2017

Not Consolidated

Consolidated

Total Passenger

2,175

1,931

(11.2)

Total Revenues

859,383

482,058

(43.9)

Aeronautical Services

232,661

225,693

(3.0)

Non-Aeronautical Services

80,514

69,071

(14.2)

– Commercial Revenues

77,649

68,243

(12.1)

Construction Revenues

546,208

187,294

(65.7)

Total Revenues Excluding Construction Revenues

313,175

294,764

(5.9)

Total Commercial Revenues

77,649

68,243

(12.1)

Total Commercial Revenues per Passenger

35.7

35.3

(1.0)

Note: For purposes of this table, approximately 5.2 and 24.9 thousand transit and general aviation passengers are included in 4Q16 and 4Q17.

Figures in pesos at an average exchange rate of Ps.145.3521

Colombia Revenues

Total Colombia Revenues for 4Q17 fell 43.9% YoY to Ps.482.1 million, mainly reflecting the impact of a local pilot strike at a leading carrier which resulted in the following declines:

  • 3.0% in revenues from aeronautical services as a result of the 13.0% YoY decline in passenger traffic;
  • 14.2% in revenues from non-aeronautical services, principally reflecting the 12.1% decline in commercial revenues, and
  • 65.7% in revenues from construction services resulting from lower committed investments.

Commercial Revenues per Passenger declined 1.0%, principally as a result of the the closure of the Duty Free store during the quarter due to contract expiration.

As shown on Table 21, during FY17, 27 new commercial spaces were opened at Airplan’s airports. More details of these openings can be found on page 21 of this report.

ASUR classifies commercial revenues as those derived from the following activities: duty-free stores, car rentals, retail operations, advertising, non-permanent ground transportation, food and beverage operations and parking lot fees.

Table 20: Colombia Commercial Revenues 

Table 21: Colombia, Retail and Other Commercial Space Opened Since December 31, 2016

Business Line

YoY Chg.

Type of Commercial Space 1

# of spaces opened

4Q17

Teleservices

71.3%

Retail

3

Car Rental Revenues

44.3%

Food & Beverage

11

Food and Beverage Operations

28.4%

Other Revenue

13

Retail Operations

1.7%

Total Commercial Spaces

27

Banking and Currency Exchange Services

0.0%

Parking Lot Fees

(4.4%)

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

Advertising Revenues

(7.0%)

Other Revenue

(14.0%)

Ground Transportation

(95.6%)

Duty Free

(100.0%)

Total Commercial Revenues

(12.1%)

Colombia Costs and Expenses

Table 22: Colombia Operating Costs and Expenses

(in thousands of Mexican pesos)

Fourth Quarter

% Chg

2016

2017

 Not Consolidated

Consolidated

Cost of Services

125,459

128,018

2.0

Technical Assistance

459

633

37.9

Concession Fees

59,713

56,005

(6.2)

Depreciation and Amortization

4,849

54,992

1,034.2

Operating Costs and Expenses Excluding Construction Costs

190,480

239,648

25.8

Construction Costs

346,482

241,628

(30.3)

Total Operating Costs & Expenses

536,962

481,276

(10.4)

 Note: Figures in pesos at an average exchange rate of Ps.145.3521

Total Operating Costs and Expenses at Airplan’s airports declined 10.4% YoY in 4Q17 to Ps.481.3 million.

Cost of Services rose 2.0% YoY, mainly driven by higher maintenance and security expenses resulting from the terminal expansions at the Montería, Quibdó and Rionegro airports.

Construction Costs declined 30.3% YoY to Ps.241.6 million, reflecting lower investments in concessioned assets during the period.

Concession Fees, which include fees paid to the Colombian government, declined 6.2%, mainly reflecting lower regulated and non-regulated revenues during the period.

Depreciation and Amortization increased 1,034.2%, mainly impacted by the decline of the discount rate from 10.46% in June 2016 to 9.71% in December 2016, which impacted the value of the accumulated amortization for 2016, determined from the comparison of current construction revenues against the total expected revenue from the concession contract.

In accordance with the application of IFRIC 12, Aerostar recognizes on a monthly basis the provision for maintenance of those concession assets that will be replaced before the end of the concession. The monthly amount is Ps.5.6 million.

Colombia Comprehensive Financing Gain /(Loss)

Table 23: Colombia Comprehensive Financing Gain / (Loss)

(in thousands of Mexican pesos)

Fourth Quarter

% Chg

2016

2017

 Not Consolidated

Consolidated

Interest Income

2,436

643

(73.6)

Interest Expense

(56,311)

(33,110)

(41.2)

Foreign Exchange Gain (Loss), Net

(900)

(51)

(94.3)

Total

(54,775)

(32,518)

(40.6)

Note: Figures in pesos at an average exchange rate of Ps.145.3521

During 4Q17, Airplan reported a Ps.32.5 million Comprehensive Financing Loss, compared with a Ps.54.8 million loss in 4Q16.

On June 1, 2015, Airplan entered into a Ps.2,897 million 12-Year Syndicated Loan Facility with eight banks with a 3-year grace period. Airplan also has a Ps.131.6 million one-year Treasury Loan from two banks.

Colombia Operating Profit and EBITDA

Table 24: Colombia Operating Profit & EBITDA

(in thousands of Mexican pesos)

Fourth Quarter

% Chg

2016

2017

 Not Consolidated

Consolidated

Total Revenue

859,383

482,058

(43.9)

Total Revenues Excluding Construction Revenues

313,175

294,764

(5.9)

Operating Profit

322,421

782

(99.8)

Operating Margin

37.5%

0.2%

(3736 bps)

Adjusted Operating Margin 1

103.0%

0.3%

(10269 bps)

Net Income

202,363

(41,950)

n.m.

EBITDA

327,270

55,774

(83.0)

EBITDA Margin

38.1%

11.6%

(2651 bps)

Adjusted EBITDA Margin 2

40.7%

37.4%

(337 bps)

1Adjusted Operating Margin excludes the effect of IFRIC 12 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 IFRIC 12 with respect to the construction or improvements to concessioned assets and is calculated by dividing EBITDA by total revenues less construction services revenues.

Note: Figures in pesos at an average exchange rate of Ps.145.3521

As a result of the above, Operating Profit in 4Q17 declined 99.8% to Ps.0.8 million, with Operating Margin down to 0.2% from 37.5% in 4Q16. Adjusted Operating Margin, which excludes the impact of IFRIC12 with respect to construction or improvements to concessioned assets, declined to 0.3% in 4T17 from 103.0% in 4T16 reflecting the lower revenues and higher depreciation costs as explained above.

EBITDA declined by Ps.271.5 million mainly reflecting a Ps.199.7 gain from construction services in 2016 compared with a Ps.54.3 million loss in 2017, while revenues, costs and expenses did not present significant variations YoY. EBITDA Margin declined to 11.6% in 4Q17, from 38.1% in 4Q16. Adjusted EBITDA Margin, which excludes the impact of IFRIC12 with respect to construction or improvements to concessioned assets, declined 337 bs to 37.4%

Colombia Capital Expenditures

During 4Q17, Airplan invested Ps.211.9 million to modernize its airports, including: i) the expansion of the passenger terminal, construction of a service center and a hotel at Quibdó airport; and ii) the expansion of the domestic and international passenger terminal, the expansion of the international platform and progress in the construction of the cargo terminal at Rionegro airport. During 4Q16, Airplan made capital investments for Ps.346.5 million.

Colombia Tariff Regulation

Functions of the Special Administrative Unit of Civil Aeronautics include to establish and collect fees, tariffs and rights for the provision of aeronautical and airport services or those that are generated by the concessions, authorizations, licenses or any other type of income or property.” As a result, Resolution #04530 issued on September 21, 2007, establishes the tariffs for the rights and the rates conceded to the concessionaire of the following airports: José María Córdova of Rionegro, Olaya Herrera of Medellín, Los Garzones of Montería, El Caraño of Quibdó, Antonio Roldán Betancourt de Carapa and Las Brujas of Corozal. This resolution also established the methodology to update and mechanisms to collect such fees, tariffs and rights.

Airplan’s regulated revenues amount to Ps.1,166.8 million as of December 31, 2017.

On January 15 of each year, the concessionaire proceeds to update the fees and tariffs in connection with the concession, which are then submitted for revision to the Special Administrative Unit of Civil Aeronautics, and which, after approval, are subsequently charged to the users of the concessioned airports.

Definitions

Concession Services Agreements (IFRIC 12 interpretation). In Mexico, ASUR is required by IFRIC 12 to include in its income statement an income line, “Construction Revenues,” reflecting the revenue from construction or improvements to concessioned assets made during the relevant period. 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. In Colombia, “Construction Revenues” include the recognition of the revenue to which the concessionaire is entitled for carrying out the infrastructure works in the development of the concession, while “Construction Costs” represent the actual costs incurred by ASUR in the execution of such additions or improvements to the concessioned assets. 

Majority Net Income reflects ASUR’s equity interests in each of its subsidiaries and therefore excludes the 40% interest in Aerostar and 7.58% in Airplan that is owned by other shareholders. Other than Aerostar and Airplan, ASUR owns (directly or indirectly) 100% of its subsidiaries.

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.

Adjusted EBITDA Margin is calculated by dividing EBITDA by total revenues less construction services revenues for Mexico and Colombia and excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets. 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. The same amount is recognized under the expense line “Construction Costs,” because ASUR hires third parties to provide construction services. In Mexico, 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. In Colombia, construction revenues do have an impact on EBITDA, as construction revenues include a reasonable margin over the actual cost of construction. 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.

About ASUR 
Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASUR) is a leading international airport operator with a portfolio of concessions to operate, maintain and develop 16 airports in the Americas. This comprises nine airports in southeast Mexico, including Cancun Airport, the most important tourist destination in Mexico, the Caribbean and Latin America, and six airports in northern Colombia, including Medellín international airport (Rionegro), the second busiest airport in Colombia. ASUR is also a 60% JV partner in Aerostar Airport Holdings, LLC, operator of the Luis Muñoz Marín International Airport serving the capital of Puerto Rico, San Juan. San Juan’s Airport is the island’s primary gateway for international and mainland-US destinations and was the first and currently the only major airport in the US to have successfully completed a public–private partnership under the FAA Pilot Program. Headquartered in Mexico, ASUR is listed both on the Mexican Bolsa, where it trades under the symbol ASUR, and on the NYSE in the U.S., where it trades under the symbol ASR. One ADS represents ten (10) series B shares. ASUR is one of the top four emerging market companies in the transportation and transportation infrastructure sector included in the Dow Jones Sustainability Emerging Markets Index (DJSI EM). For more information, visit www.asur.com.mx

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 Merrill 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.

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.

– SELECTED OPERATING TABLES & FINANCIAL STATEMENTS FOLLOW –

Passenger Traffic Breakdown by Airport

Fourth Quarter        

% Chg

Twelve- Months

% Chg

2016

2017

2016

2017

Mexico Passenger Traffic 1

Domestic Traffic

3,452,086

3,668,922

6.3

12,957,652

14,310,728

10.4

CUN

Cancun

1,796,241

1,968,462

9.6

6,844,158

7,808,368

14.1

CZM

Cozumel

36,324

38,187

5.1

140,966

136,851

(2.9)

HUX

Huatulco

144,389

158,792

10.0

545,157

640,207

17.4

MID

Merida

500,996

529,886

5.8

1,781,053

1,947,095

9.3

MTT

Minatitlan

53,340

43,947

(17.6)

221,964

194,440

(12.4)

OAX

Oaxaca

183,349

217,643

18.7

687,456

784,765

14.2

TAP

Tapachula

84,432

72,207

(14.5)

296,816

278,118

(6.3)

VER

Veracruz

322,152

336,706

4.5

1,242,663

1,299,989

4.6

VSA

Villahermosa

330,863

303,092

(8.4)

1,197,419

1,220,895

2.0

International Traffic

3,629,299

3,853,128

6.2

15,449,399

16,741,841

8.4

CUN

Cancun

3,438,146

3,636,941

5.8

14,571,637

15,793,141

8.4

CZM

Cozumel

76,039

75,956

(0.1)

397,126

404,747

1.9

HUX

Huatulco

27,315

33,547

22.8

117,623

136,425

16.0

MID

Mérida

41,229

54,739

32.8

163,729

201,389

23.0

MTT

Minatitlan

1,881

1,512

(19.6)

11,278

6,779

(39.9)

OAX

Oaxaca

15,184

21,300

40.3

59,454

77,521

30.4

TAP

Tapachula

3,447

3,650

5.9

11,972

14,474

20.9

VER

Veracruz

16,225

15,849

(2.3)

73,204

67,983

(7.1)

VSA

Villahermosa

9,833

9,634

(2.0)

43,376

39,382

(9.2)

Total Traffic México

7,081,385

7,522,050

6.2

28,407,051

31,052,569

9.3

CUN

Cancun

5,234,387

5,605,403

7.1

21,415,795

23,601,509

10.2

CZM

Cozumel

112,363

114,143

1.6

538,092

541,598

0.7

HUX

Huatulco

171,704

192,339

12.0

662,780

776,632

17.2

MID

Merida

542,225

584,625

7.8

1,944,782

2,148,484

10.5

MTT

Minatitlan

55,221

45,459

(17.7)

233,242

201,219

(13.7)

OAX

Oaxaca

198,533

238,943

20.4

746,910

862,286

15.4

TAP

Tapachula

87,879

75,857

(13.7)

308,788

292,592

(5.2)

VER

Veracruz

338,377

352,555

4.2

1,315,867

1,367,972

4.0

VSA

Villahermosa

340,696

312,726

(8.2)

1,240,795

1,260,277

1.6

US Passenger Traffic, San Juan Airport (LMM)

SJU Total 1

2,109,394

1,542,093

(26.9)

9,032,627

8,407,404

(6.9)

Domestic Traffic

1,837,932

1,383,363

(24.7)

7,900,148

7,389,095

(6.5)

International Traffic

271,462

158,730

(41.5)

1,132,479

1,018,309

(10.1)

Colombia Passenger Traffic

Domestic Traffic

2,333,277

1,946,733

(16.6)

8,793,417

8,660,472

(1.5)

MDE

Medellín (Rionegro)

1,605,071

1,293,805

(19.4)

6,132,225

6,038,983

(1.5)

EOH

Medellín

294,368

280,213

(4.8)

1,033,642

1,033,507

(0.0)

MTR

Montería

254,746

210,280

(17.5)

963,005

942,943

(2.1)

APO

Carepa

57,420

48,848

(14.9)

208,411

202,221

(3.0)

UIB

Quibdó

99,513

90,354

(9.2)

384,715

361,157

(6.1)

CZU

Corozal

22,159

23,233

4.8

71,419

81,661

14.3

International Traffic

335,272

374,344

11.7

1,347,112

1,390,657

3.2

MDE

Medellín (Rionegro)

374,344

11.7

5.8

1,347,112

1,390,657

3.2

EOH

Medellín

MTR

Montería

APO

Carepa

UIB

Quibdó

CZU

Corozal

Total Traffic Colombia

2,668,549

2,321,077

(13.0)

10,140,529

10,051,129

(0.9)

MDE

Medellín (Rionegro)

1,940,343

1,668,149

(14.0)

7,479,337

7,429,640

(0.7)

EOH

Medellín

294,368

280,213

(4.8)

1,033,642

1,033,507

(0.0)

MTR

Montería

254,746

210,280

(17.5)

963,005

942,943

(2.1)

APO

Carepa

57,420

48,848

(14.9)

208,411

202,221

(3.0)

UIB

Quibdó

99,513

90,354

(9.2)

384,715

361,157

(6.1)

CZU

Corozal

22,159

23,233

4.8

71,419

81,661

14.3

1 On May 26, 2017, ASUR increased its ownership stake in LMM Airport from 50% to 60%. While ASUR only began fully consolidating line by line Aerostar’s operations starting June 1, 2017, for comparison purposes, this table includes traffic figures for LMM Airport for 4Q16 and
4Q17 as well as 12M16 and 12M17.

2 On October 19, 2017, ASUR acquired Airplan in Colombia and began to consolidate its operations line by line.

Note: Passenger figures for Mexico exclude transit and general aviation passengers, and SJU include transit passengers and general aviation passengers.

ASUR Retail and Other Commercial Space Opened since December 31, 2016 1

Business Name

Type

Opening Date

MEXICO

Cancun

Ay Guey

Retail

March 2017

Cuadra

Retail

April 2017

Abito

Retail

November 2017

Ace

Car Rental

November 2017

Ado

Transportation

November 2017

Adoro Mexico

Retail

December 2017

Airport Cab

Transportation

November 2017

Alamo

Car Rental

November 2017

Artesanias

Retail

November 2017

Avis

Car Rental

November 2017

Ay Guey

Retail

November 2017

Bijoux Terner

Retail

November 2017

Bodega

Food and Beverage

November 2017

Body Shop

Retail

November 2017

Budget

Car Rental

December 2017

Cocina Mera

Food and Beverage

November 2017

Duty Free

Duty free

November 2017

Duty Paid

Retail

November 2017

Enterprise

Car Rental

November 2017

Europcar

Car Rental

November 2017

Fire Fly

Car Rental

November 2017

Food Court – Área De Sentado

Food and Beverage

November 2017

Food Court – Guacamole Ándale

Food and Beverage

November 2017

Food Court – Guys Burguer

Food and Beverage

November 2017

Food Court – Hacienda Montejo

Food and Beverage

November 2017

Food Court – Johnny Rockets

Food and Beverage

November 2017

Food Court – Wolfgang Puck

Food and Beverage

November 2017

Food Court -Panda

Food and Beverage

December 2017

Fox

Car Rental

November 2017

Gold Elements

Retail

November 2017

Guacamole Grill

Food and Beverage

November 2017

Harley Davidson

Retail

November 2017

Heineken Bar

Food and Beverage

November 2017

Hertz

Car Rental

November 2017

Hot Dogs All Dressed

Retail

November 2017

Kipling

Retail

November 2017

Margarita Ville

Food and Beverage

November 2017

Mayfer

Retail

November 2017

Mex

Car Rental

November 2017

National

Car Rental

November 2017

Panama Jack

Retail

November 2017

Pineda Covalin

Retail

November 2017

Porthia

Retail

November 2017

Prisonart

Retail

November 2017

Roger Boots

Retail

November 2017

Samsonite

Retail

November 2017

Scappino

Retail

November 2017

Secure Wrap

Other Revenue

November 2017

Snack Bar Coconut

Food and Beverage

November 2017

Star Island Café

Food and Beverage

November 2017

Starbucks

Food and Beverage

November 2017

Sunglass Hut

Retail

November 2017

Super Shuttle

Transportation

November 2017

Sushi Tequila

Food and Beverage

November 2017

Tawa

Retail

November 2017

Tere Cazola

Retail

November 2017

Tienda De Conveniencia

Retail

November 2017

Trhifty / Dollar

Car Rental

November 2017

Tumi

Retail

November 2017

Turist

Other Revenue

November 2017

Turist (Oficina)

Other Revenue

November 2017

U-Save

Car Rental

November 2017

Watch My Watch

Retail

November 2017

Xelbor Cab

Transportation

November 2017

Oaxaca

NLG Services

VIP Lounge

February 2017

Business Name

Type

Opening Date

Mexico (cont.)

Huatulco

Global lounge op mex

VIP Lounge

April 2017

Centro Cambiario Fresan

Currency Exchange

November 2017

SAN JUAN, PUERTO RICO

El Market Jewerly – Terminal B

Retail

January 2017

Gustos Café Public Area – Terminal B

Food and Beverage

June 2017

Popeye’s Food Court – Terminal C

Food and Beverage

July 2017

Jet Set Salon – Terminal B

Other Revenue

July 2017

Doggies Boutique – Terminal C

Other Revenue

September 2017

Europcar

Car Rental

September 2017

HR Insurance

Other Revenue

December 2017

Ready Credit (2 new units)

Other Revenue

December 2017

COLOMBIA

Selvazul Airline S.A.S

Other Revenue

January 2017

Fly Colombia City Tour S.A.S

Other Revenue

January 2017

Estivo S.A.S

Retail

February 2017

Gonzalez Cañavera Andrea Susana

Food and Beverage

February 2017

Katherine Mosquera Palacios

Food and Beverage

February 2017

Jesus David Castrillon Ayala

Food and Beverage

February 2017

Aerocharter Andina S.A.S

Other Revenue

March 2017

Ruben Dario Lopez Monterrosa

Food and Beverage

March 2017

Fondo De Valorizacion Del Municipio De Medellin

Other Revenue

March 2017

Elizabeth Cabrera Mayoral

Other Revenue

April 2017

Distribuidora Doña Elena S.A.

Food and Beverage

April 2017

Sr Travel Colombia S.A.S

Other Revenue

April 2017

Diana Carolina Perea Anaya

Other Revenue

June 2017

Transaereo S.A.S

Other Revenue

July 2017

Doris Gil Asprilla Abadia

Food and Beverage

July 2017

Heli Jet S.A.S

Other Revenue

September 2017

Energizar S.A

Other Revenue

September 2017

Monica Maria Bedoya Echeverry

Food and Beverage

October 2017

Pivo S.A.S.

Food and Beverage

October 2017

Pivo S.A.S.

Food and Beverage

October 2017

Rapipharma Sas

Retail

October 2017

Ingenieria De Servicos B.C Ltda

Food and Beverage

November 2017

Industria De Restaurantes Casuales S.A.S

Retail

November 2017

Central Charter De Colombia

Other Revenue

November 2017

Turismo Del Morrosquillo Ltda

Other Revenue

November 2017

Biviana Maria Duque Rico

Food and Beverage

November 2017

Agencia De Viajes Y Turismo Aviatur S.A

Other Revenue

December 2017

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

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

Operating Results per Airport

Thousands of mexican pesos 

Item

4Q
2016

4Q 2016
Per Workload
Unit

4Q 
2017

4Q 2017 
Per Workload
Unit

YoY % Chg

YoY % Chg 
Per Workload
Unit 

Mexico

Cancun 1

Aeronautical Revenues

816,629

153.6

945,484

166.0

15.8

8.1

Non-Aeronautical Revenues

702,080

132.0

803,322

141.0

14.4

6.8

Construction Services Revenues

1,111,701

209.1

580,625

101.9

(47.8)

(51.3)

Total Revenues

2,630,410

494.7

2,329,431

409.0

(11.4)

(17.3)

Operating Profit

864,605

162.6

(3,749,883)

(658.3)

(533.7)

(504.9)

EBITDA

948,623

178.4

1,160,991

203.8

22.4

14.2

Merida

Aeronautical Revenues

95,799

161.8

108,419

169.9

13.2

5.0

Non-Aeronautical Revenues

22,344

37.7

24,532

38.5

9.8

2.1

Construction Services Revenues

10,463

17.7

8,969

14.1

(14.3)

(20.3)

Other 2

14

15

7.1

n/a

Total Revenues

128,620

217.3

141,935

222.5

10.4

2.4

Operating Profit

34,054

57.5

67,723

106.1

98.9

84.5

EBITDA

44,055

74.4

79,390

124.4

80.2

67.2

Villahermosa

Aeronautical Revenues

51,330

145.8

49,254

152.0

(4.0)

4.3

Non-Aeronautical Revenues

16,080

45.7

15,002

46.3

(6.7)

1.3

Construction Services Revenues

13,190

37.5

6,036

18.6

(54.2)

(50.4)

Other 2

16

19

0.1

18.8

n/a

Total Revenues

80,616

229.0

70,311

217.0

(12.8)

(5.2)

Operating Profit

31,466

89.4

28,334

87.5

(10.0)

(2.1)

EBITDA

38,740

110.1

35,824

110.6

(7.5)

0.5

Other Airports 3

Aeronautical Revenues

175,362

178.2

194,411

186.4

10.9

4.6

Non-Aeronautical Revenues

33,442

34.0

36,273

34.8

8.5

2.4

Construction Services Revenues

28,170

28.6

41,218

39.5

46.3

38.1

Other 2

38

39

2.6

n/a

Total Revenues

237,012

240.9

271,941

260.7

14.7

8.2

Operating Profit

79,540

80.8

92,223

88.4

15.9

9.4

EBITDA

113,730

115.6

126,981

121.7

11.7

5.3

Holding & Service Companies 4

Construction Services Revenues

n/a

n/a

n/a

n/a

Other 2

424,880

n/a

417,189

n/a

(1.8)

n/a

Total Revenues

424,880

n/a

417,189

n/a

(1.8)

n/a

Operating Profit

194,703

n/a

167,011

n/a

(14.2)

n/a

EBITDA

199,223

n/a

171,179

n/a

(14.1)

n/a

Consolidation Adjustment Mexico

Consolidation Adjustment

(424,948)

n/a

(417,262)

n/a

(1.8)

n/a

Total Mexico

Aeronautical Revenues

1,139,120

157.2

1,297,568

168.5

13.9

7.2

Non-Aeronautical Revenues

773,946

106.8

879,129

114.2

13.6

6.9

Construction Services Revenues

1,163,524

160.6

636,848

82.7

(45.3)

(48.5)

Total Revenues

3,076,590

424.7

2,813,545

365.3

(8.5)

(14.0)

Operating Profit

1,204,368

166.2

(3,394,592)

(440.8)

(381.9)

(365.2)

EBITDA

1,344,371

185.6

1,574,365

204.4

17.1

10.1

San Juan Puerto Rico, US 5

Aeronautical Revenues

373,238

420.0

n/a

n/a

Non-Aeronautical Revenues

202,903

228.3

n/a

n/a

Construction Services Revenues

n/a

n/a

Total Revenues

576,141

648.4

n/a

n/a

Operating Profit

(30,637)

(34.5)

n/a

n/a

EBITDA

307,631

346.2

n/a

n/a

Consolidation Adjustment San Juan

Consolidation Adjustment

n/a

n/a

n/a

n/a

Colombia 6

Aeronautical Revenues

225,693

254.0

n/a

n/a

Non-Aeronautical Revenues

69,071

77.7

n/a

n/a

Construction Services Revenues

187,294

210.8

n/a

n/a

Total Revenues

482,058

542.5

n/a

n/a

Operating Profit

782

0.9

n/a

n/a

EBITDA

55,774

62.8

n/a

n/a

Consolidation Adjustment Colombia

Consolidation Adjustment

n/a

n/a

n/a

n/a

CONSOLIDATED ASUR

Aeronautical Revenues

1,139,120

157.2

1,896,499

220.8

66.5

40.5

Non-Aeronautical Revenues

773,946

106.8

1,151,103

134.0

48.7

25.5

Construction Services Revenues

1,163,524

160.6

824,142

95.9

(29.2)

(40.3)

Total Revenues

3,076,590

424.7

3,871,744

450.7

25.8

6.1

Operating Profit

1,204,368

166.2

(3,424,447)

(398.7)

(384.3)

(339.9)

EBITDA

1,344,371

185.6

1,937,770

225.6

44.1

21.6

1Reflects 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.

5 Reflects the results of operations of  San Juan Airport, Puerto Rico, US

6 Reflects the results of operations of  Airplan, Colombia

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

Consolidated Balances Sheet as of  December 31, 2017 and December 31, 2016

Thousands of mexican pesos 

Item

December 2017

December 2016

Variation

%

Assets 

Current Assets

Cash and Cash Equivalents

4,461,044

3,497,635

963,409

27.5

Accounts Receivable, net

685,502

464,872

220,630

47.5

Recoverable Taxes and Other Current Assets

420,028

270,511

149,517

55.3

Total Current Assets

5,566,574

4,233,018

1,333,556

31.5

Non Current Assets

Machinery, Furniture and Equipment, net

473,238

323,099

150,139

46.5

Airports Concessions, net

46,518,909

20,284,126

26,234,783

129.3

Accounts Receivable from Joint Venture

1,886,546

(1,886,546)

(100.0)

Investment in Joint Venture Accounted by the Equity Method

2,489,302

(2,489,302)

(100.0)

Goodwill

3,007,282

3,007,282

Total  Assets

55,566,003

29,216,091

26,349,912

90.2

Liabilities and Stockholders’ Equity

Current Liabilities

Trade Accounts Payable

428,883

11,401

417,482

3,661.8

Bank Loans

173,471

58,336

115,135

197.4

Accrued Expenses and Others Payables

1,466,007

523,446

942,561

180.1

Total Current Liabilities

2,068,361

593,183

1,475,178

248.7

Long Term Liabilities

Bank Loans

9,708,461

4,402,440

5,306,021

120.5

Long Term Debt

7,489,465

7,489,465

Deferred Income Taxes

2,752,031

1,456,020

1,296,011

89.0

Employee Benefits

12,664

10,494

2,170

20.7

Total Long Term Liabilities

19,962,621

5,868,954

14,093,667

240.1

Total Liabilities

22,030,982

6,462,137

15,568,845

240.9

Stockholders’ Equity

Capital Stock

7,767,276

7,767,276

Legal Reserve

1,075,002

893,133

181,869

20.4

Net Income for the Period

6,750,165

3,629,262

3,120,903

86.0

Cumulative Effect of Conversion of Foreign Currency

195,511

893,132

(697,621)

(78.1)

Retained Earnings 

11,167,805

9,571,151

1,596,654

16.7

Non- Controlling interests 

6,579,262

6,579,262

Total Stockholders’ Equity

33,535,021

22,753,954

10,781,067

47.4

Total Liabilities and Stockholders’ Equity

55,566,003

29,216,091

26,349,912

90.2

Exchange Rate per Dollar Ps. 19.6629

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

Consolidated Statements of Income from January 1 to December 31,  2017 and 2016

Thousands of mexican pesos 

Item

12M

12M

%

4Q

4Q

%

2016

2017

Chg

2016

2017

Chg

Revenues

Aeronautical Services

4,532,194

6,484,219

43.1

1,139,120

1,896,499

66.5

Non-Aeronautical Services

3,104,343

4,261,383

37.3

773,946

1,151,103

48.7

Construction Services

2,116,954

1,768,291

(16.5)

1,163,524

824,142

(29.2)

Total Revenues

9,753,491

12,513,893

28.3

3,076,590

3,871,744

25.8

Operating Expenses

Cost of Services

1,336,386

2,309,625

72.8

365,310

801,152

119.3

Cost of Construction

2,116,954

1,822,625

(13.9)

1,163,524

878,475

(24.5)

General and Administrative Expenses

204,842

204,418

(0.2)

50,722

45,892

(9.5)

Technical Assistance

288,111

346,487

20.3

70,793

83,404

17.8

Concession Fee

344,939

468,695

35.9

86,241

156,500

81.5

Depreciation and Amortization

529,660

5,885,210

1,011.1

135,632

5,330,768

3,830.3

Total Operating Expenses

4,820,892

11,037,060

128.9

1,872,222

7,296,191

289.7

Operating Income

4,932,599

1,476,833

(70.1)

1,204,368

(3,424,447)

(384.3)

Comprehensive Financing Cost

(45,469)

(231,834)

409.9

(1,370)

(127,427)

9,201.2

Income From Results of Joint Venture Accounted by the Equity Method

144,248

112,345

(22.1)

7,089

(100.0)

Net Profit per Business Combinations

7,029,200

7,029,200

Income Before Income Taxes

5,031,378

8,386,544

66.7

1,210,087

3,477,326

187.4

Provision for Income Tax

1,502,976

1,928,197

28.3

357,240

474,047

32.7

Provision for Asset Tax

932

932

233

233

Deferred Income Taxes

(101,792)

(292,750)

187.6

(64,892)

(110,801)

70.7

Net Income for the Year

3,629,262

6,750,165

86.0

917,506

3,113,847

239.4

Majority Net Income

3,629,262

5,834,484

60.8

917,506

2,262,511

146.6

Non- Controlling Interests 

915,681

851,336

Earning per Share

12.0975

19.4483

60.8

3.0584

7.5417

146.6

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

6.1525

9.8909

60.8

1.5554

3.8355

146.6

Exchange Rate per Dollar Ps. 19.6629

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

 Consolidated Statement of Cash flow as of December 31,  2017 and 2016

Thousands of mexican pesos

Item

12M

12M

%

4Q

4Q

%

2016

2017

Chg

2016

2017

Chg

Operating Activities

Income Before Income Taxes

5,031,378

8,386,544

66.7

1,210,087

3,477,326

187.4

Items Related with Investing Activities:

Depreciation and Amortization

529,660

5,885,210

1,011.1

135,632

5,330,768

3,830.3

Income from Results of Joint Venture Accounted by the Equity Method

(144,248)

(112,345)

(22.1)

(7,089)

(100.0)

Net Profit per Business Combinations

(7,029,200)

(7,029,200)

Interest Income

(184,569)

(245,787)

33.2

(55,576)

(81,833)

47.2

Interest Payables

618,831

299,946

Foreign Exchange Gain (loss), Net Unearned

396,839

(144,743)

(136.5)

163,447

192,942

18.0

Loss (Gain), due to Natural Disaster

982

982

Sub-Total

5,629,060

7,359,492

30.7

1,446,501

2,190,931

51.5

Increase in Trade Receivables

(45,257)

(51,155)

13.0

(368,940)

(349,190)

(5.4)

Decrease in Recoverable Taxes and other Current Assets

335,343

372,219

11.0

(71,493)

1,431,708

(2,102.6)

Income Tax Paid

(1,569,878)

(1,956,894)

24.7

(313,822)

(418,830)

33.5

Trade Accounts Payable

113,902

165,756

45.5

(10,585)

23,786

(324.7)

Net Cash Flow Provided by Operating Activities

4,463,170

5,889,418

32.0

681,661

2,878,405

322.3

Investing Activities

Investments in Associates

(4,767,600)

(4,041,017)

Loans granted to Associates

325,694

282,482

(13.3)

263,617

(4,025)

(101.5)

Restricted Cash

67,076

71,306

Investments in Machinery, Furniture and Equipment, Net

(1,814,482)

(1,471,418)

(18.9)

(1,007,328)

(766,160)

(23.9)

Interest Income

122,093

259,717

112.7

38,305

92,275

140.9

Initial Recognition for Consolidation

610,482

31,752

Net Cash Flow used by Investing Activities

(1,366,695)

(5,019,261)

267.3

(705,406)

(4,615,869)

554.4

Excess Cash to Use in Financing Activities

3,096,475

870,157

(71.9)

(23,745)

(1,737,464)

7,217.2

Banks Load

4,068,912

68,912

Paid Debt

(102,907)

Interest Paid

(2,024,753)

(1,549,374)

Dividends Paid

(1,683,000)

(1,848,000)

9.8

Net Cash Flow used by Financing Activities

(1,683,000)

93,252

(105.5)

(1,480,462)

Net Increase in Cash and Cash Equivalents

1,413,475

963,409

(31.8)

(23,745)

(3,217,926)

13,452.0

Cash and Cash Equivalents at Beginning of Period

2,084,160

3,497,635

67.8

3,521,380

7,678,970

118.1

Cash and Cash Equivalents at the End of Period

3,497,635

4,461,044

27.5

3,497,635

4,461,044

27.5

Cision View original content:http://www.prnewswire.com/news-releases/asur-4q17-passenger-traffic-increased-62-yoy-in-mexico-and-declined-269-in-san-juan-puerto-rico-and-130-in-colombia-300603186.html

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


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