ASUR announces strong 4Q23 financial performance surpassing expectations

Tuesday, February 27, 2024

Grupo Aeroportuario del Sureste, S.A.B. de C.V. (NYSE: ASR; BMV: ASUR), known as ASUR, a prominent international airport conglomerate operating in Mexico, the U.S., and Colombia, has released its financial results for the three- and twelve-month periods ending on December 31, 2023.

Key moments in the final quarter of 2023 comprise:

• Total passenger traffic rose by 1.1% compared to the previous year. Passenger traffic by country showed varying trends:
• In Mexico, there was a 4.1% increase, with domestic traffic up by 3.4% and international traffic up by 4.8%.
• In Puerto Rico (Aerostar), there was a notable increase of 12.5%, driven by a 10.7% rise in domestic traffic and a remarkable 31.0% surge in international traffic.
• In Colombia (Airplan), there was a decline of 12.9%, mainly due to a 16.2% drop in domestic traffic caused by the suspension of operations of Viva Air and Ultra Air in the first quarter of 2023, partially offset by a 2.3% increase in international traffic.
• Revenues experienced a decrease of 5.5% year-over-year, totaling Ps.6,876.9 million. Excluding construction revenue, revenue actually increased by 4.8% compared to the same period in 2022.
• The consolidated commercial revenue per passenger was Ps.119.0 million.
• Consolidated EBITDA decreased by 5.8% year-over-year to Ps.4,171.4 million.
• The adjusted EBITDA margin (excluding the effect of IFRIC 12) stood at 67.7%, down from 75.3% in the fourth quarter of 2022.
• In the fourth quarter of 2022, EBITDA saw a 1.1% year-over-year increase, excluding other non-recurring income. However, the adjusted EBITDA margin dropped by 2.5 percentage points, contrasting with the previously reported decrease of 7.6 percentage points.
• Cash and equivalents at the year-end amounted to Ps.15,691.8 million, with a Net Debt to EBITDA LTM ratio of negative 0.2x.

For further details and discussions on these earnings, ASUR will host an earnings call on Tuesday, February 27, 2024, at 10:00 AM US ET, or 9:00 AM Mexico City time. The dial-in information for the call is provided below:

• Dial-in: 1-877-407-4018 (Toll-Free) and 1-201-689-8471 (International)
• Access Code: 13744137

A replay of the call will be available starting from Tuesday, February 27, 2024, at 2:00 PM US ET, until Tuesday, March 5, 2024, at 11:59 PM US ET. The details for accessing the replay are as follows:

• Dial-in: 1-844-512-2921 (Toll-Free) and 1-412-317-6671 (International)
• Access Code: 13744137

Please note: All financial figures referenced are unaudited and compiled in adherence to International Financial Reporting Standards (IFRS). Unless stated otherwise, all monetary values are denoted in Mexican pesos.

Definitions

Concession Services Agreements (IFRIC 12 interpretation). In Mexico and Puerto Rico, 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” represents the actual costs incurred in the execution of such additions or improvements to the concessioned assets. 

Majority Net Income represents ASUR’s equity interests in its subsidiaries, excluding the 40% interest in Aerostar owned by other shareholders. Apart from Aerostar, ASUR directly or indirectly owns 100% of its subsidiaries.

EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization, excludes taxes, deferred taxes, profit sharing, non-ordinary items, participation in associates’ results, comprehensive financing costs, and depreciation and amortization. It is not intended to replace net income as an indicator of operating performance or cash flow as a measure of liquidity. However, EBITDA is commonly used by investors and analysts to assess performance and compare companies. Note that EBITDA is not a standardized measure under U.S. GAAP or IFRS and may be calculated differently by various companies.

Adjusted EBITDA Margin is computed by dividing EBITDA by total revenues, excluding construction services revenues for Mexico, Puerto Rico, and Colombia, and adjusting for the impact of IFRIC 12 on construction or improvements to concessioned assets. Under IFRIC 12, ASUR includes construction revenue in its income statement, which is offset by construction costs. This setup ensures that the revenue from construction or improvements to concessioned assets is accounted for correctly. In Mexico and Puerto Rico, where equal amounts of Construction Revenues and Construction Costs are recognized due to IFRIC 12, Construction Revenues do not affect EBITDA but do influence EBITDA Margin. However, in Colombia, construction revenues do impact EBITDA, as they incorporate a margin over the actual construction cost. Similar to EBITDA Margin, Adjusted EBITDA Margin is not an indicator of operational performance or liquidity and is not standardized under U.S. GAAP or IFRS, potentially leading to varied calculations across companies.

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