OMA Announces Second Quarter 2020
Operating and Financial Results
Mexico City, Mexico, July 22, 2020- Mexican airport operator Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., known as OMA (NASDAQ: OMAB; BMV: OMA), today reported its unaudited, consolidated financial and operating results for the second quarter 2020.
2Q20 Summary
- Passenger traffic decreased 90.2%, reaching 583 thousand passengers. The drop in the number of passengers is mainly due to the measures implemented as a result of the health emergency caused by COVID-19,both in Mexico and in the main international destinations of our airports, as well as to the significant reduction in the offer of seats by the airlines that operate in our airports and the lower demand for travel. See section "COVID-19Update" in this report.
- Capital investments and major maintenance included in the Master Development Plans (MDPs) plus strategic investments were Ps. 376 million for the quarter.
(Thousand Passengers and Million Pesos) | 2Q19 | 2Q20 | % Var | 6M19 | 6M20 | % Var |
Passenger Traffic | 5,958 | 583 | (90.2) | 11,072 | 5,447 | (50.8) |
Aeronautical Revenues | 1,496 | 154 | (89.7) | 2,819 | 1,429 | (49.3) |
Non-Aeronautical Revenues | 455 | 193 | (57.5) | 881 | 634 | (28.1) |
Aeronautical + Non-Aeronautical Revenues | 1,951 | 347 | (82.2) | 3,701 | 2,063 | (44.3) |
Construction Revenues | 216 | 288 | 33.5 | 408 | 469 | 14.9 |
Total Revenues | 2,167 | 635 | (70.7) | 4,109 | 2,531 | (38.4) |
Adjusted EBITDA | 1,441 | 25 | (98.2) | 2,711 | 1,265 | (53.3) |
Adjusted EBITDA Margin (%) | 73.9% | 7.3% | 73.3% | 61.3% | ||
Income from Operations | 1,276 | (150) | n.a. | 2,404 | 934 | (61.1) |
Operating Margin (%) | 58.9% | -23.6% | 58.5% | 36.9% | ||
Consolidated Net Income | 848 | (181) | n.a. | 1,609 | 789 | (50.9) |
Net Income of Controlling Interest | 849 | (180) | n.a. | 1,605 | 785 | (51.1) |
EPS (Ps.) | 2.16 | (0.46) | n.a. | 4.08 | 2.01 | (50.7) |
EPADS (US$) | 0.90 | (0.16) | n.a. | 1.70 | 0.70 | (59.2) |
MDP and Strategic Investments | 269 | 376 | 39.8 | 509 | 596 | 17.1 |
Chief Financial Officer
Ruffo Pérez Pliego del Castillo +52 (81) 8625 4300 rperezpliego@oma.aero
Investor Relations:
Luis Emmanuel Camacho Thierry +52 (81) 8625 4308 ecamacho@oma.aero
www.oma.aero
OMA will hold its 2Q20 earnings conference call on July 23, 2020 at 11 am Eastern time, 10 am Mexico City time.
Call 1-877-407-9208toll-free from the U.S. or 1-201-493-6784 from outside the U.S. The conference ID is 13706204. The conference call will also be available by webcast at http://ir.oma.aero/events.cfm.
2Q20 Operating Results
Operations, Passengers, and Cargo
During the quarter, there were no new route openings or definitive cancellations. The offer of seats decreased 85.0% compared to the same quarter of the previous year, mainly due to the number of routes suspended by the airlines.
Total passenger traffic decreased 90.2%. Of total traffic, 94.2% was domestic and 5.8% was international.
Domestic passenger traffic decreased 89.7%. and international passenger traffic decreased 94.8%.
The airports with the greatest impact on total passenger traffic due to the reduction of frequencies or suspension of flights are:
- Monterrey (-90.9%), on its Mexico City, Cancún, Guadalajara, Tijuana and Houston routes.
- Culiacán (-83.1%), mainly on its Tijuana and Mexico City routes.
- Chihuahua (-91.3%), on its Mexico City route.
2Q19 | 2Q20 | % Var | 6M19 | 6M20 | % Var | |
Available Seats | 7,837,398 | 1,175,323 | (85.0) | 15,011,842 | 8,516,882 | (43.3) |
Passenger Traffic: | ||||||
Domestic | 5,307,291 | 548,497 | (89.7) | 9,676,827 | 4,711,948 | (51.3) |
International | 650,792 | 34,055 | (94.8) | 1,394,757 | 734,817 | (47.3) |
Total Passenger Traffic | 5,958,083 | 582,552 | (90.2) | 11,071,584 | 5,446,765 | (50.8) |
Commercial Aviation (Regular and Charter) | 5,914,843 | 563,312 | (90.5) | 10,982,423 | 5,386,902 | (50.9) |
General Aviation | 43,240 | 19,240 | (55.5) | 89,161 | 59,863 | (32.9) |
Cargo Units | 248,955 | 171,953 | (30.9) | 488,551 | 390,336 | (20.1) |
Workload Units | 6,207,038 | 754,505 | (87.8) | 11,560,135 | 5,837,101 | (49.5) |
Flight Operations (Takeoffs and Landings): | ||||||
Domestic | 75,796 | 23,179 | (69.4) | 147,471 | 89,053 | (39.6) |
International | 11,134 | 2,813 | (74.7) | 23,145 | 14,540 | (37.2) |
Total Flight Operations | 86,930 | 25,992 | (70.1) | 170,616 | 103,593 | (39.3) |
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Commercial Operations
The commercial space occupancy rate in the passenger terminals was 93.7% as of June 30, 2020.
Hotel Services
- The NH Collection Terminal 2 Hotel had a 12.9% occupancy rate, a decrease of 70.5 percentage points compared to 2Q19. The average room rate was Ps.1,980 per night.
- Hilton Garden Inn. As of April 6, 2020, the hotel closed operations due to the low demand caused by the COVID-19 contingency. On July 6, 2020, it restarted operations.
Freight Logistics Services
- OMA Carga's revenues decreased by 23.1% due to lower import and export cargo operations during the quarter. Total tonnage handled decreased 40.6% to 4,782 metric tons.
Industrial Services
- OMA VYNMSA Aero Industrial Park: Revenues reached Ps. 12 million, an increase of 29.3%. The increase is due to the expansion of two industrial warehouses, as well as the depreciation of the Mexican peso compared to the second quarter of 2019.
Consolidated Financial Results
Revenues
Aeronautical revenues decreased 89.7%.
(Ps. Thousands) | 2Q19 | 2Q20 | % Var | 6M19 | 6M20 | % Var |
Domestic Passenger Charges | 1,010,188 | 49,361 | (95.1) | 1,818,106 | 823,533 | (54.7) |
International Passenger Charges | 294,091 | 17,850 | (93.9) | 624,064 | 324,960 | (47.9) |
Other Aeronautical Services, Regulated Leases and Access Rights | 191,526 | 86,501 | (54.8) | 376,934 | 280,513 | (25.6) |
Aeronautical Revenues | 1,495,805 | 153,712 | (89.7) | 2,819,104 | 1,429,006 | (49.3) |
Aeronautical Revenues/Passenger (Ps.) | 251.1 | 263.9 | 5.1 | 254.6 | 262.4 | 3.0 |
Non-aeronautical revenues decreased 57.5%.
Commercial revenues decreased 57.8%. The line items with the largest variations were:
- Parking, -88.6%, due to the reduction in short and long stay operations.
- Restaurants, Car Rentals and Retail, -61.7%,-51.0% and -54.8%, respectively, as most revenue generation in the quarter was related to fixed or minimum rental levels.
3
(Ps. Thousands) | 2Q19 | 2Q20 | % Var | 6M19 | 6M20 | % Var |
Commercial Activities: | ||||||
Parking | 70,690 | 8,083 | (88.6) | 131,763 | 67,982 | (48.4) |
Advertising | 19,037 | 20,067 | 5.4 | 38,629 | 40,028 | 3.6 |
Retail | 26,431 | 11,951 | (54.8) | 51,554 | 38,814 | (24.7) |
Duty Free | 4,437 | 1,118 | (74.8) | 10,280 | 6,304 | (38.7) |
Restaurants | 36,020 | 13,811 | (61.7) | 67,246 | 52,237 | (22.3) |
Car Rentals | 40,298 | 19,754 | (51.0) | 74,384 | 58,973 | (20.7) |
Passenger Services | 1,205 | 1,249 | 3.6 | 2,230 | 2,339 | 4.9 |
Time Shares & Hotel Promotion | 3,928 | 3,014 | (23.3) | 8,108 | 7,592 | (6.4) |
Communications and Networks | 3,788 | 4,145 | 9.4 | 7,536 | 8,273 | 9.8 |
VIP Lounges | 12,223 | 5,338 | (56.3) | 22,519 | 19,603 | (12.9) |
Financial Services | 2,442 | 1,773 | (27.4) | 4,823 | 4,140 | (14.2) |
Other Services (incl. marketing and cost recoveries) | 10,489 | 7,281 | (30.6) | 20,565 | 18,493 | (10.1) |
Total Revenues from Commercial Activities | 230,990 | 97,583 | (57.8) | 439,638 | 324,778 | (26.1) |
Diversification revenues decreased 57.3%, mainly due to lower revenues from hotel services. | ||||||
(Ps. Thousands) | 2Q19 | 2Q20 | % Var | 6M19 | 6M20 | % Var |
Diversification Activities: | ||||||
Hotel Services | 87,161 | 7,519 | (91.4) | 177,236 | 84,611 | (52.3) |
OMA Carga (Freight Logistics Service) | 49,381 | 37,956 | (23.1) | 95,105 | 87,000 | (8.5) |
Real Estate Services | 4,355 | 4,270 | (1.9) | 8,871 | 9,256 | 4.3 |
Industrial Services | 9,411 | 12,168 | 29.3 | 18,578 | 23,152 | 24.6 |
Other Services (incl. marketing and cost recoveries) | 1,242 | 2,819 | 127.0 | 2,278 | 4,329 | 90.0 |
Total Revenues from Diversification Activities | 151,550 | 64,732 | (57.3) | 302,069 | 208,347 | (31.0) |
Complementary Activities: | ||||||
Checked Baggage Screening | 45,307 | 4,305 | (90.5) | 84,115 | 42,652 | (49.3) |
Other Leases | 20,471 | 21,908 | 7.0 | 41,263 | 43,814 | 6.2 |
Access Rights | 4,484 | 2,376 | (47.0) | 9,230 | 9,024 | (2.2) |
Other Services (incl. marketing and cost recoveries) | 2,660 | 2,482 | (6.7) | 5,161 | 5,128 | (0.6) |
Total Revenues from Complementary Activities | 72,922 | 31,070 | (57.4) | 139,768 | 100,617 | (28.0) |
Non-Aeronautical Revenues | 455,462 | 193,386 | (57.5) | 881,474 | 633,742 | (28.1) |
Non-Aeronautical Revenues/Passenger (Ps.) | 76.4 | 332.0 | 334.3 | 79.6 | 116.4 | 46.1 |
Construction revenues represent the value of improvements to concessioned assets. They are equal to construction costs and generate neither a gain nor a loss. Construction revenues and costs are determined based on the advance in the execution of projects in accordance with the airports' Master Development Programs (MDP), and variations depend on the rate of project execution.
(Ps. Thousands) | 2Q19 | 2Q20 | % Var | 6M19 | 6M20 | % Var |
Aeronautical Revenues | 1,495,805 | 153,712 | (89.7) | 2,819,105 | 1,429,006 | (49.3) |
Non-Aeronautical Revenues | 455,462 | 193,386 | (57.5) | 881,474 | 633,742 | (28.1) |
Aeronautical + Non-Aeronautical Revenues | 1,951,267 | 347,098 | (82.2) | 3,700,579 | 2,062,748 | (44.3) |
Construction Revenues | 215,597 | 287,841 | 33.5 | 408,021 | 468,688 | 14.9 |
Total Revenues | 2,166,864 | 634,939 | (70.7) | 4,108,600 | 2,531,436 | (38.4) |
Aeronautical Revenues + Non-Aeronautical Revenues / Passenger (Ps.) | 327.5 | 595.8 | 81.9 | 334.2 | 378.7 | 13.3 |
4
Costs and Operating Expenses
The sum of cost of airport services and general and administrative expenses (G&A) decreased 16.1%, mainly due to lower minor maintenance, subcontracted services and electricity expense, as a result of the cost reduction initiatives implemented by the company.
(Ps. Thousands) | 2Q19 | 2Q20 | % Var | 6M19 | 6M20 | % Var |
Payroll | 124,258 | 128,667 | 3.5 | 247,030 | 259,683 | 5.1 |
Contracted Services (Security, Cleaning and Professional Services) | 74,615 | 54,177 | (27.4) | 143,101 | 122,659 | (14.3) |
Minor Maintenance | 51,755 | 23,569 | (54.5) | 95,814 | 67,232 | (29.8) |
Basic Services (Electricity, Water, Telephone) | 19,454 | 13,405 | (31.1) | 46,447 | 31,537 | (32.1) |
Materials and Supplies | 7,723 | 9,535 | 23.5 | 14,391 | 16,691 | 16.0 |
Insurance | 6,670 | 8,618 | 29.2 | 14,468 | 14,994 | 3.6 |
Other costs and expenses | 45,966 | 39,247 | (14.6) | 82,745 | 79,989 | (3.3) |
Cost of Airport Services + G&A | 330,441 | 277,218 | (16.1) | 643,996 | 592,785 | (8.0) |
Cost of Hotel Services | 46,320 | 13,140 | (71.6) | 94,707 | 55,611 | (41.3) |
Cost of Industrial Park Services | 1,111 | 2,944 | 165.1 | 1,908 | 4,279 | 124.2 |
Subtotal (Cost of Services + G&A) | 377,871 | 293,301 | (22.4) | 740,611 | 652,676 | (11.9) |
Subtotal (Cost of Services + G&A) / Passenger (Ps.) | 63.4 | 503.5 | 693.9 | 66.9 | 119.8 | 79.1 |
The major maintenance provision was Ps.68 million. The outstanding balance of the maintenance provision as of June 30, 2020 was Ps. 1,060 million.
The airport concession tax decreased 79.6% as a result of the decrease in revenues; technical assistance fee decreased 76.2%.
As a result of the foregoing, total operating costs and expenses decreased 11.9%.
(Ps. Thousands) | 2Q19 | 2Q20 | % Var | 6M19 | 6M20 | % Var |
Cost of Services | 239,320 | 161,282 | (32.6) | 475,408 | 390,900 | (17.8) |
Administrative Expenses (G&A) | 138,551 | 132,019 | (4.7) | 265,203 | 261,776 | (1.3) |
Subtotal (Cost of Services + G&A) | 377,871 | 293,301 | (22.4) | 740,611 | 652,676 | (11.9) |
Major Maintenance Provision | 60,519 | 68,348 | 12.9 | 102,156 | 116,155 | 13.7 |
Construction Cost | 215,597 | 287,841 | 33.5 | 408,021 | 468,688 | 14.9 |
Concession Taxes | 93,406 | 19,099 | (79.6) | 175,567 | 102,221 | (41.8) |
Technical Assistance Fee | 39,444 | 9,404 | (76.2) | 74,263 | 43,156 | (41.9) |
Depreciation & Amortization | 104,307 | 106,888 | 2.5 | 204,394 | 214,473 | 4.9 |
Other (Income) Expense - Net | (686) | (32) | (95.3) | (738) | (32) | (95.7) |
Total Operating Costs and Expenses | 890,458 | 784,849 | (11.9) | 1,704,274 | 1,597,337 | (6.3) |
Operating Income and Adjusted EBITDA
Operating loss was of Ps.150 million, with an operating margin of -23.6%.
Adjusted EBITDA was PS.25 million, with an Adjusted EBITDA margin of 7.3%.
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(Ps. Thousands) | 2Q19 | 2Q20 | % Var | 6M19 | 6M20 | % Var | |
Consolidated Net Income | 848,243 | (181,265) | n.a. | 1,608,727 | 789,206 | (50.9) | |
- | Financing (Expense) Income | (57,356) | (90,143) | 57.2 | (101,629) | 198,369 | n.a. |
+ | Income Taxes | 370,807 | (58,788) | n.a. | 693,970 | 343,262 | (50.5) |
Operating Income | 1,276,406 | (149,910) | n.a. | 2,404,326 | 934,099 | (61.1) | |
Operating Margin (%) | 58.9% | -23.6% | 58.5% | 36.9% | |||
+ | Depreciation and Amortization | 104,307 | 106,888 | 2.5 | 204,394 | 214,473 | 4.9 |
EBITDA | 1,380,713 | (43,022) | n.a. | 2,608,720 | 1,148,572 | (56.0) | |
EBITDA Margin (%) | 63.7% | -6.8% | 63.5% | 45.4% | |||
- | Construction Revenue | 215,597 | 287,841 | 33.5 | 408,021 | 468,688 | 14.9 |
+ | Construction Cost | 215,597 | 287,841 | 33.5 | 408,021 | 468,688 | 14.9 |
+ | Major Maintenance Provision | 60,519 | 68,348 | 12.9 | 102,156 | 116,155 | 13.7 |
Adjusted EBITDA | 1,441,232 | 25,326 | (98.2) | 2,710,876 | 1,264,727 | (53.3) | |
Adjusted EBITDA Margin: Adjusted EBITDA/(Aeronautical Revenue + Non-Aeronautical Revenue) (%) | 73.9% | 7.3% | 73.3% | 61.3% |
Financing Income, Taxes, and Net Income
Financing Expense was Ps.90 million, mainly due to interest expense.
(Ps. thousand) | 2Q19 | 2Q20 | % Var | 6M19 | 6M20 | % Var |
Interest Income | 43,923 | 26,834 | (38.9) | 98,781 | 77,502 | (21.5) |
Interest (Expense) | (86,864) | (104,413) | 20.2 | (175,262) | (210,490) | 20.1 |
Exchange Gain (Loss), net | (14,415) | (12,564) | (12.8) | (25,148) | 331,357 | n.a. |
Total Financing Income (Expense) | (57,356) | (90,143) | 57.2 | (101,629) | 198,369 | n.a. |
Tax benefit was Ps.59 million
Consolidated net loss in the quarter was Ps.181 million.
Earnings per share, based on net loss of the controlling interest, loss per share was Ps.0.46; and the ADS loss was US $ 0.16. Each ADS equals eight Series B shares.
(Ps. thousand) | 2Q19 | 2Q20 | % Var | 6M19 | 6M20 | % Var |
Consolidated Net Income | 848,243 | (181,265) | n.a. | 1,608,727 | 789,206 | (50.9) |
Net income margin % | 39.1% | -28.5% | 39.2% | 31.2% | ||
Non-controlling interest | (628) | (1,019) | 62.3 | 3,268 | 3,949 | 20.8 |
Net income of controlling Interet | 848,871 | (180,246) | n.a. | 1,605,459 | 785,257 | (51.1) |
Earnings per Share, Ps. | 2.16 | (0.46) | n.a. | 4.08 | 2.01 | (50.7) |
Earnings per ADS, US$ | 0.90 | (0.16) | n.a. | 1.70 | 0.70 | (59.2) |
MDP and Strategic Investments
In 2Q20, capital investments and major maintenance works in the MDPs and strategic investments totaled Ps.376 million, comprised of Ps.288 million in improvements to concessioned assets, Ps.20 million in major maintenance and Ps.68 million in strategic investments.
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The most important investment expenditures included:
Airport | Project | Status | ||||
MDP Investments | ||||||
Reynosa | Rehabilitation and expansion of commercial aviation platform | In Process | ||||
Monterrey | Expansion of Terminal C | In Process | ||||
Monterrey | Expansion of public area in Terminal A - first phase | In Process | ||||
Tampico | Expansion and remodeling of terminal building | In Process | ||||
Zihuatanejo | Modernization of terminal building | In Process | ||||
Chihuahua | Major rehabilitation of runway | In Process | ||||
Tampico | Minor rehabilitation of runway | In Process | ||||
Monterrey | Major and minor rehabilitation of runway and taxiways | In Process | ||||
Monterrey | Construction of cargo platform and expansion of taxiway | In Process | ||||
Monterrey | Construction of remote platforms and taxiways | In Process | ||||
Strategic Investments | ||||||
Ciudad Juárez | Long-stay parking expansion | In Process | ||||
Monterrey | Industrial park - Construction of industrial warehouse | In Process | ||||
Monterrey | Industrial park - Construction of industrial warehouse | Started | ||||
Debt | ||||||
(Ps. Thousands) | Maturity | Interest Rate | June 30, | December 31, | June 30, | |
2019 | 2019 | 2020 | ||||
Total Short-Term Debt | - | - | - | - | ||
Long-Term Debt | ||||||
10-yr Bond, Ps. 1,500 mm: OMA13 | 2023 | 6.47% | 1,500,000 | 1,500,000 | 1,500,000 | |
Finance CAPEX and Refinance Debt | Bullet | |||||
7-yr Bond, Ps. 3,000 mm: OMA14 | 2021 | 6.85% | 3,000,000 | 3,000,000 | 3,000,000 | |
Finance CAPEX and Refinance Debt | Bullet | |||||
10-yr Term Loan - Private Export Funding Corporation | 2021 | 3M Libor + 125 pb | 69,128 | 49,575 | 29,320 | |
Finance Security Equipment | Qtly. Amort. | |||||
Subtotal Long-Term Debt | 4,569,128 | 4,549,575 | 4,529,320 | |||
Less: Current Portion of Long-Term Debt | (35,906) | (36,851) | (3,032,940) | |||
Less: Commissions and Financing Expenses | (7,321) | (5,967) | (4,566) | |||
Total Long-Term Debt | 4,525,901 | 4,506,758 | 1,491,814 | |||
Plus: Financial leases | 236,221 | 220,860 | 205,135 | |||
Plus: Current Portion of Long-Term Debt | 35,906 | 36,851 | 3,032,940 | |||
Total Debt + Financial leases | 4,798,028 | 4,764,469 | 4,729,889 | |||
Mexican peso denominated debt | 98% | 99% | 99% | |||
U.S. dollar denominated debt | 2% | 1% | 1% | |||
Net Debt (Includes financial leases) | 2,190,073 | 1,334,596 | 1,583,798 | |||
Net Debt / Adjusted EBITDA (x) | 0.42 | 0.24 | 0.38 |
Derivatives
As of the date of this report, OMA has no financial derivatives exposure.
7
Cash Flow Statement
In 2Q20, cash flows from operating activities used cash of Ps.414 million, compared to a cash generation of Ps.614 million in the same period of 2019, mainly due to the lower income before taxes and the increase in recoverable taxes.
Investing activities used cash of Ps.480 million in the second quarter. Outflows are mainly related to construction works executed during 1Q20.
Financing activities generated an outflow of Ps.97 million, mainly due to interest paid of Ps.80 million.
Cash decreased Ps.992 million in 2Q20, to Ps.3,146 million as of June 30, 2020.
From April 1 to June 30, | From Jan 1 to June 30, | |||||
(Ps. Thousands) | 2019 | 2020 | %Var | 2019 | 2020 | %Var |
Income Before Taxes | 1,219,050 | (240,053) | n.a. | 2,302,697 | 1,132,468 | (50.8) |
Items not affecting Operating Activities, net | 216,148 | 275,002 | 27.2 | 404,380 | 136,522 | (66.2) |
Changes in operational assets and liabilities, net | (821,550) | (448,640) | (45.4) | (996,384) | (947,365) | (4.9) |
Net Flow from Operating Activities | 613,648 | (413,691) | n.a. | 1,710,693 | 321,624 | (81.2) |
Net Flow from Investing Activities | (116,944) | (480,484) | 310.9 | (247,161) | (609,751) | 146.7 |
Net Flow from Financing Activities | (1,699,988) | (97,478) | (94.3) | (1,790,218) | (329,284) | (81.6) |
Net Increase (Reduction) in Cash and Cash Equivalents | (1,203,284) | (991,653) | (17.6) | (326,686) | (617,412) | 89.0 |
Effect of change for fair value of cash and equivalents | (9,726) | (28,868) | 196.8 | (24,261) | 333,630 | n.a. |
Cash and Equivalents at Beginning of Period | 3,820,965 | 4,166,612 | 9.0 | 2,958,902 | 3,429,873 | 15.9 |
Cash and Equivalents at End of Period | 2,607,955 | 3,146,091 | 20.6 | 2,607,955 | 3,146,091 | 20.6 |
COVID-19 Update
As previously reported by OMA, during the months of April and May a decree issued by the Ministry of Health was in force, pursuant to which non-essential activities in the country were suspended. Despite airports were considered essential under this decree and remained in operation, passenger traffic suffered a severe decrease as a result of the reduction in travel demand and seat supply by airlines.
On May 29, 2020, the Federal Government issued a decree pursuant to which, as of June 1, an epidemiological risk traffic light was established by region (municipality or state), that determines the level of health alert and the type of activities authorized to take place. As a result, the reactivation level and the type of economic activities allowed are different in the states where our airports operate.
Since June, activity at OMA airports has begun to recover and has continued to improve in the first weeks of July. The number of passengers from July 1st to 20th decreased 73.3%, relative to the same period of the previous year. This compares to passenger traffic declines in the months of April, May and June of 92.8%, 93.5%, and 84.6%, respectively.
Likewise, it is important to mention that OMA airports have implemented health security protocols in coordination with Mexican health and aeronautical authorities, in order to look after the health of our passengers, as well as our personnel and that of service providers.
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Subsequent Events
Extraordinary General Shareholders' Meeting approves cancellation of shares: The Shareholders´ Meeting held on July 7, 2020, approved the cancellation of 3,659,417 Series "B" shares, acquired by OMA pursuant to Article 56 of the Securities Market Law. As a result, shares outstanding after giving effect to the aforementioned cancellation of shares are 390,111,556.
Restart of operations of the Hilton Garden Inn Hotel: On July 6, 2020, the Hilton Garden Inn hotel that operates at the Monterrey airport restarted activities. The hotel had suspended operations since April 6, 2020 due to low occupancy derived from COVID-19.
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Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. | ||||||
Passenger Traffic | ||||||
(Terminal Passengers - Excludes Transit Passengers) | ||||||
Total Passengers | 2Q19 | 2Q20 | % Var | 6M19 | 6M20 | % Var |
Acapulco | 221,043 | 15,297 | (93.1) | 436,256 | 237,039 | (45.7) |
Ciudad Juárez | 428,716 | 44,075 | (89.7) | 764,010 | 367,747 | (51.9) |
Culiacán | 644,774 | 108,916 | (83.1) | 1,211,097 | 647,232 | (46.6) |
Chihuahua | 438,002 | 37,916 | (91.3) | 787,383 | 381,556 | (51.5) |
Durango | 122,400 | 15,063 | (87.7) | 217,999 | 132,705 | (39.1) |
Mazatlán | 274,901 | 33,059 | (88.0) | 585,917 | 355,010 | (39.4) |
Monterrey | 2,902,266 | 262,991 | (90.9) | 5,271,934 | 2,446,028 | (53.6) |
Reynosa | 126,002 | 12,164 | (90.3) | 229,421 | 105,409 | (54.1) |
San Luis Potosí | 160,408 | 10,006 | (93.8) | 297,639 | 147,645 | (50.4) |
Tampico | 192,783 | 9,931 | (94.8) | 360,613 | 153,561 | (57.4) |
Torreón | 183,320 | 15,849 | (91.4) | 340,462 | 156,885 | (53.9) |
Zacatecas | 122,968 | 9,556 | (92.2) | 219,017 | 110,146 | (49.7) |
Zihuatanejo | 140,500 | 7,729 | (94.5) | 349,836 | 205,802 | (41.2) |
Total | 5,958,083 | 582,552 | (90.2) | 11,071,584 | 5,446,765 | (50.8) |
Domestic Passengers | 2Q19 | 2Q20 | % Var | 6M19 | 6M20 | % Var |
Acapulco | 210,628 | 15,177 | (92.8) | 394,980 | 207,127 | (47.6) |
Ciudad Juárez | 426,848 | 44,031 | (89.7) | 761,082 | 366,488 | (51.8) |
Culiacán | 634,634 | 108,768 | (82.9) | 1,193,143 | 639,487 | (46.4) |
Chihuahua | 403,631 | 35,191 | (91.3) | 725,450 | 351,683 | (51.5) |
Durango | 102,984 | 12,191 | (88.2) | 184,782 | 107,901 | (41.6) |
Mazatlán | 218,884 | 30,079 | (86.3) | 388,806 | 222,394 | (42.8) |
Monterrey | 2,533,727 | 246,709 | (90.3) | 4,602,960 | 2,146,718 | (53.4) |
Reynosa | 124,985 | 12,070 | (90.3) | 227,723 | 104,743 | (54.0) |
San Luis Potosí | 113,860 | 5,843 | (94.9) | 211,123 | 105,842 | (49.9) |
Tampico | 178,695 | 9,549 | (94.7) | 334,234 | 142,436 | (57.4) |
Torreón | 165,026 | 14,300 | (91.3) | 307,169 | 142,817 | (53.5) |
Zacatecas | 86,464 | 7,883 | (90.9) | 150,710 | 76,684 | (49.1) |
Zihuatanejo | 106,925 | 6,706 | (93.7) | 194,665 | 97,628 | (49.8) |
Total | 5,307,291 | 548,497 | (89.7) | 9,676,827 | 4,711,948 | (51.3) |
International Passengers | 2Q19 | 2Q20 | % Var | 6M19 | 6M20 | % Var |
Acapulco | 10,415 | 120 | (98.8) | 41,276 | 29,912 | (27.5) |
Ciudad Juárez | 1,868 | 44 | (97.6) | 2,928 | 1,259 | (57.0) |
Culiacán | 10,140 | 148 | (98.5) | 17,954 | 7,745 | (56.9) |
Chihuahua | 34,371 | 2,725 | (92.1) | 61,933 | 29,873 | (51.8) |
Durango | 19,416 | 2,872 | (85.2) | 33,217 | 24,804 | (25.3) |
Mazatlán | 56,017 | 2,980 | (94.7) | 197,111 | 132,616 | (32.7) |
Monterrey | 368,539 | 16,282 | (95.6) | 668,974 | 299,310 | (55.3) |
Reynosa | 1,017 | 94 | (90.8) | 1,698 | 666 | (60.8) |
San Luis Potosí | 46,548 | 4,163 | (91.1) | 86,516 | 41,803 | (51.7) |
Tampico | 14,088 | 382 | (97.3) | 26,379 | 11,125 | (57.8) |
Torreón | 18,294 | 1,549 | (91.5) | 33,293 | 14,068 | (57.7) |
Zacatecas | 36,504 | 1,673 | (95.4) | 68,307 | 33,462 | (51.0) |
Zihuatanejo | 33,575 | 1,023 | (97.0) | 155,171 | 108,174 | (30.3) |
Total | 650,792 | 34,055 | (94.8) | 1,394,757 | 734,817 | (47.3) |
10
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. | |||||
Unaudited Consolidated Balance Sheet | |||||
(Thousands of Pesos) | |||||
June 30, | December 31, | June 30, | % Var | % Var | |
2019 | 2019 | 2020 | Jun20/Jun19 | Jun20/Dec19 | |
Assets | |||||
Current Assets | |||||
Cash and Cash Equivalents | 2,607,955 | 3,429,873 | 3,146,091 | 20.6 | (8.3) |
Trade Accounts Receivable - Net | 834,814 | 757,756 | 795,930 | (4.7) | 5.0 |
Trade Accounts Receivable from Related Parties | 25,082 | 181,989 | 295,789 | 1,079.3 | 62.5 |
Recoverable Taxes | 121,088 | 295,768 | 504,660 | 316.8 | 70.6 |
Advances to Contractors | 119,540 | 102,776 | 135,467 | 13.3 | 31.8 |
Other Current Assets | 48,718 | 42,742 | 108,453 | 122.6 | 153.7 |
Total Current Assets | 3,757,197 | 4,810,904 | 4,986,390 | 32.7 | 3.6 |
Land, Buildings, Machinery and Equipment - Net | 2,642,682 | 2,647,101 | 2,680,090 | 1.4 | 1.2 |
Investments in Airport Concessions - Net | 8,849,785 | 9,267,111 | 9,593,070 | 8.4 | 3.5 |
Rights of use of leased assets, net | 229,189 | 210,788 | 192,668 | (15.9) | (8.6) |
Other Assets - Net | 59,175 | 44,053 | 37,965 | (35.8) | (13.8) |
Deferred Taxes | 296,723 | 297,004 | 287,964 | (3.0) | (3.0) |
Total Assets | 15,834,751 | 17,276,961 | 17,778,147 | 12.3 | 2.9 |
Liabilities and Stockholder's Equity | |||||
Current Liabilities | |||||
Current Portion of Long-Term Debt | 35,906 | 36,851 | 3,032,940 | 8,346.9 | 8,130.3 |
Current Portion of Major Maintenance Provision | 223,792 | 151,554 | 474,954 | 112.2 | 213.4 |
Current Portion of Financial Leases | 45,732 | 72,320 | 71,529 | 56.4 | (1.1) |
Trade Accounts Payable | 190,454 | 196,791 | 177,351 | (6.9) | (9.9) |
Taxes and Accrued Expenses | 583,234 | 590,263 | 299,730 | (48.6) | (49.2) |
Accounts Payable to Related Parties | 185,094 | 187,515 | 299,305 | 61.7 | 59.6 |
Total Current Liabilities | 1,264,212 | 1,235,294 | 4,355,809 | 244.5 | 252.6 |
Long-Term Debt | 4,525,901 | 4,506,758 | 1,491,814 | (67.0) | (66.9) |
Guarantee Deposits | 311,900 | 387,656 | 379,816 | 21.8 | (2.0) |
Employee Benefits | 86,279 | 106,159 | 112,464 | 30.3 | 5.9 |
Major Maintenance Provision | 762,832 | 802,342 | 585,364 | (23.3) | (27.0) |
Financial Leases | 190,489 | 148,540 | 133,606 | (29.9) | (10.1) |
Deferred Taxes | 171,165 | 202,717 | 192,573 | 12.5 | (5.0) |
Total liabilities | 7,312,778 | 7,389,466 | 7,251,446 | (0.8) | (1.9) |
Common Stock | 303,394 | 301,739 | 300,822 | (0.8) | (0.3) |
Additional paid-in capital | 29,786 | 29,786 | 29,786 | - | - |
Retained Earnings | 6,507,598 | 8,121,937 | 8,907,194 | 36.9 | 9.7 |
Share Repurchase Reserve | 1,500,000 | 1,257,454 | 1,108,371 | (26.1) | (11.9) |
Labor Obligations | 13,178 | 4,194 | 4,194 | (68.2) | - |
Non-Controlling Interest | 168,017 | 172,385 | 176,334 | 5.0 | 2.3 |
Stockholders' Equity | 8,521,973 | 9,887,495 | 10,526,701 | 23.5 | 6.5 |
Total Liabilities and Stockholder's Equity | 15,834,751 | 17,276,961 | 17,778,147 | 12.3 | 2.9 |
11
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. | ||||||
Unaudited Consolidated Statement of Comprehensive Income | ||||||
(Thousands of Pesos) | ||||||
2Q19 | 2Q20 | % Var | 6M19 | 6M20 | % Var | |
Revenues | ||||||
Aeronautical Revenues | 1,495,805 | 153,712 | (89.7) | 2,819,105 | 1,429,006 | (49.3) |
Non-Aeronautical Revenues | 455,462 | 193,386 | (57.5) | 881,474 | 633,742 | (28.1) |
Aeronautical Revenues + Non-Aeronautical Revenues | 1,951,267 | 347,098 | (82.2) | 3,700,579 | 2,062,748 | (44.3) |
Construction Revenues | 215,597 | 287,841 | 33.5 | 408,021 | 468,688 | 14.9 |
Total Revenues | 2,166,864 | 634,939 | (70.7) | 4,108,600 | 2,531,436 | (38.4) |
Operating Costs | ||||||
Cost of Services | 239,320 | 161,282 | (32.6) | 475,408 | 390,900 | (17.8) |
Administrative Expenses | 138,551 | 132,019 | (4.7) | 265,203 | 261,776 | (1.3) |
Major Maintenance Provision | 60,519 | 68,348 | 12.9 | 102,156 | 116,155 | 13.7 |
Construction Costs | 215,597 | 287,841 | 33.5 | 408,021 | 468,688 | 14.9 |
Concession Taxes | 93,406 | 19,099 | (79.6) | 175,567 | 102,221 | (41.8) |
Technical Assistance Fee | 39,444 | 9,404 | (76.2) | 74,263 | 43,156 | (41.9) |
Depreciation and Amortization | 104,307 | 106,888 | 2.5 | 204,394 | 214,473 | 4.9 |
Other expenses (Revenues) - Net | (686) | (32) | (95.3) | (738) | (32) | (95.7) |
Total Operating Costs and Expenses | 890,458 | 784,849 | (11.9) | 1,704,274 | 1,597,337 | (6.3) |
Operating Income | 1,276,406 | (149,910) | n.a. | 2,404,326 | 934,099 | (61.1) |
Operating Margin (%) | 58.9% | -23.6% | 58.5% | 36.9% | ||
Financing (Expense) Income: | ||||||
Interest Income | 43,923 | 26,834 | (38.9) | 98,781 | 77,502 | (21.5) |
Interest (Expense) | (86,864) | (104,413) | 20.2 | (175,262) | (210,490) | 20.1 |
Exchange Gain (Loss) - Net | (14,415) | (12,564) | (12.8) | (25,148) | 331,357 | n.a. |
Total Financing (Expense) Income | (57,356) | (90,143) | 57.2 | (101,629) | 198,369 | n.a. |
Income before Taxes | 1,219,050 | (240,053) | n.a. | 2,302,697 | 1,132,468 | (50.8) |
Income Tax | 370,807 | (58,788) | n.a. | 693,970 | 343,262 | (50.5) |
Consolidated Net Income | 848,243 | (181,265) | n.a. | 1,608,727 | 789,206 | (50.9) |
Consolidated Comprehensive Income | 848,243 | (181,265) | n.a. | 1,608,727 | 789,206 | (50.9) |
Consolidated Net Income attributable to: | ||||||
Non-Controlling Interest | (628) | (1,019) | 62.3 | 3,268 | 3,949 | 20.8 |
Controlling Interest | 848,871 | (180,246) | n.a. | 1,605,459 | 785,257 | (51.1) |
Consolidated Comprehensive Income attributable to: | ||||||
Non-Controlling Interest | (628) | (1,019) | 62.3 | 3,268 | 3,949 | 20.8 |
Controlling Interest | 848,871 | (180,246) | n.a. | 1,605,459 | 785,257 | (51.1) |
Weighted Average Shares Outstanding | 393,446,466 | 390,111,556 | 393,446,466 | 390,518,608 | ||
EPS (Ps.) | 2.16 | (0.46) | n.a. | 4.08 | 2.01 | (50.7) |
EPADS (US$) | 0.90 | (0.16) | n.a. | 1.70 | 0.70 | (59.2) |
EBITDA | 1,380,713 | (43,022) | n.a. | 2,608,720 | 1,148,572 | (56.0) |
EBITDA Margin (%) | 63.7% | -6.8% | 63.5% | 45.4% | ||
Adjusted EBITDA | 1,441,232 | 25,326 | (98.2) | 2,710,876 | 1,264,727 | (53.3) |
Adjusted EBITDA Margin (%) | 73.9% | 7.3% | 73.3% | 61.3% |
12
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. | ||||||
Unaudited Consolidated Cash Flow Statement | ||||||
(Thousands of Pesos) | ||||||
From April 1 to June 30, | From Jan 1 to June 30, | |||||
2019 | 2020 | % Var. | 2019 | 2020 | % Var. | |
Operating Activities | ||||||
Income Before Taxes | 1,219,050 | (240,053) | n.a. | 2,302,697 | 1,132,468 | (50.8) |
Depreciation and Amortization | 104,307 | 106,888 | 2.5 | 204,394 | 214,473 | 4.9 |
Major Maintenance Provision | 60,519 | 68,348 | 12.9 | 102,156 | 116,155 | 13.7 |
Doubtful Accounts Provision | 233 | 4,651 | 1,892.3 | 156 | 4,882 | 3,025.0 |
(Profit) / Loss on Sales of Machinery and Equipment - Net | (686) | (32) | (95.4) | (746) | (32) | (95.7) |
Interest Income | (43,035) | (38,008) | (11.7) | (97,097) | (77,502) | (20.2) |
Items in Results Related to Financing Activities | ||||||
Present Value of Major Maintenance Provision | (888) | 30,188 | n.a. | (1,684) | 38,028 | n.a. |
Interest Expense | 86,864 | 85,399 | (1.7) | 175,262 | 172,462 | (1.6) |
Non-Paid Exchange Fluctuation | 8,834 | 17,568 | 98.9 | 21,938 | (331,944) | n.a. |
1,435,198 | 34,949 | (97.6) | 2,707,077 | 1,268,990 | (53.1) | |
Changes in: | ||||||
Trade Accounts Receivable - Net | (154,110) | (44,171) | (71.3) | (138,404) | (43,056) | (68.9) |
Recoverable Taxes | (39,363) | (138,619) | 252.2 | (8,423) | (208,892) | 2,380.0 |
Other Accounts Receivable | (58,125) | (50,196) | (13.6) | (65,113) | (50,487) | (22.5) |
Accounts Payable | (16,435) | 5,772 | n.a. | (31,153) | (50,190) | 61.1 |
Taxes and Accrued Expenses | (84,530) | 26,649 | n.a. | (15,785) | (19,147) | 21.3 |
Taxes Paid | (384,424) | (244,720) | (36.3) | (630,423) | (614,965) | (2.5) |
Accounts Payable to Related Parties | (49,093) | 1,695 | n.a. | (55,766) | 88,693 | n.a. |
Major Maintenance Payments | (28,520) | (19,819) | (30.5) | (57,396) | (47,761) | (16.8) |
Other Long-Term Liabilities | (6,949) | 14,768 | n.a. | 6,078 | (1,561) | n.a. |
Net Flow from Operating Activities | 613,648 | (413,691) | n.a. | 1,710,693 | 321,624 | (81.2) |
Investment Activities | ||||||
Acquisition of Property, Plant and Equipment | (15,427) | (82,108) | 432.2 | (39,395) | (114,440) | 190.5 |
Investment in Airport Concessions | (157,315) | (436,416) | 177.4 | (324,733) | (572,845) | 76.4 |
Other Long-Term Assets | 12,078 | - | (100.0) | (532) | - | (100.0) |
Proceeds from Sale of Land, Machinery and Equipment | 686 | 32 | (95.4) | 746 | 32 | (95.7) |
Interest income | 43,035 | 38,008 | (11.7) | 97,097 | 77,502 | (20.2) |
Other Investments Held to Maturity | - | - | n.a. | 19,657 | - | (100) |
Net Flow from Investing Activities | (116,944) | (480,484) | 310.9 | (247,161) | (609,751) | 146.7 |
Cash Flow before Financing Activities | 496,704 | (894,175) | n.a. | 1,463,532 | (288,127) | n.a. |
Financing Activities | ||||||
Repurchase of Shares | - | - | n.a. | - | (150,000) | n.a. |
Loans - Disbursed | 7,350 | 18,865 | 156.7 | 14,700 | 32,585 | 121.7 |
Loans - Paid | (9,371) | (11,078) | 18.2 | (21,772) | (21,941) | 0.8 |
Interest Expense | (78,729) | (79,863) | 1.4 | (163,909) | (160,900) | (1.8) |
Payment of loans related to financial leases | (20,557) | (25,402) | 23.6 | (20,557) | (29,028) | 41.2 |
Net Cash Flow from Financing Activities | (1,699,988) | (97,478) | (94) | (1,790,218) | (329,284) | (82) |
Net Increase (Reduction) in Cash and Cash Equivalents | (1,203,284) | (991,653) | (18) | (326,686) | (617,412) | 89 |
Effect of change for fair value of cash and equivalents | (9,726) | (28,868) | n.a. | (24,261) | 333,630 | n.a. |
Cash and Equivalents at Beginning of Period | 3,820,965 | 4,166,612 | 9.0 | 2,958,902 | 3,429,873 | 15.9 |
Cash and Equivalents at End of Period | 2,607,955 | 3,146,091 | 20.6 | 2,607,955 | 3,146,091 | 20.6 |
13
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. | ||||||||
Unaudited Statement of Changes in Stockholders' Equity | ||||||||
As of June 30, 2019 (Thousand Pesos) | ||||||||
Additional | Share | Non- | Total | |||||
Number of | Capital stock | Paid-In | Retained | Repurchase | Labor | Controlling | Stockholder's | |
Shares | Nominal | Capital | Earnings | Reserve | Obligations | Interest | Equity | |
Balance as of December 31, 2018 | 393,446,466 | 303,394 | 29,786 | 6,534,804 | 1,466,016 | 13,178 | 164,749 | 8,511,927 |
Dividends Paid | - | - | - | (1,598,681) | - | - | - | (1,598,681) |
Increase in the Share Purchase Reserve | - | - | - | (33,984) | 33,984 | - | - | - |
Comprehensive Income (Loss) | - | - | - | 1,605,459 | - | - | 3,268 | 1,608,727 |
Balance as of June 30, 2019 | 393,446,466 | 303,394 | 29,786 | 6,507,598 | 1,500,000 | 13,178 | 168,017 | 8,521,973 |
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. | ||||||||
Unaudited Statement of Changes in Stockholders' Equity | ||||||||
As of June 30, 2020 (Thousand Pesos) | ||||||||
Additional | Share | Non- | Total | |||||
Number of | Capital stock | Paid-in | Retained | Repurchase | Labor | Controlling | Stockholder's | |
Shares | Nominal | Capital | Earnings | Reserve | Obligations | Interest | Equity | |
Balance as of December 31, 2019 | 391,300,815 | 301,739 | 29,786 | 8,121,937 | 1,257,454 | 4,194 | 172,385 | 9,887,495 |
Reissuance (Repurchase) of Shares - Net | (1,189,259) | (917) | - | - | (149,083) | - | - | (150,000) |
Comprehensive Income (Loss) | - | - | - | 785,257 | - | - | 3,949 | 789,206 |
Balance as of June 30, 2020 | 390,111,556 | 300,822 | 29,786 | 8,907,194 | 1,108,371 | 4,194 | 176,334 | 10,526,701 |
14
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. | |||||||||
Unaudited Operating Results by Airport | |||||||||
(Thousands of Pesos) | |||||||||
Monterrey | 2Q19 | 2Q20 | 6M19 | 6M20 | Culiacán | 2Q19 | 2Q20 | 6M19 | 6M20 |
Total Revenues | 933,499 | 405,623 | 1,745,089 | 1,161,780 | Total Revenues | 203,930 | 40,193 | 366,969 | 208,850 |
Aeronautical Revenues | 711,961 | 74,159 | 1,271,771 | 602,684 | Aeronautical Revenues | 162,822 | 29,496 | 305,840 | 166,688 |
Non- Aeronatical Revenue | 184,246 | 101,007 | 349,392 | 274,495 | Non- Aeronatical Revenue | 16,610 | 7,721 | 31,741 | 27,239 |
Construction Revenues | 37,292 | 230,457 | 123,926 | 284,601 | Construction Revenues | 24,498 | 2,975 | 29,389 | 14,923 |
Income from Operations | 126,479 | 75,198 | 247,305 | 173,588 | Income from Operations | 25,137 | 18,553 | 51,495 | 40,516 |
EBITDA | 154,758 | 105,643 | 303,273 | 233,843 | EBITDA | 29,783 | 23,776 | 60,730 | 50,919 |
Chihuahua | Ciudad Juárez | ||||||||
Total Revenues | 165,815 | 20,006 | 284,309 | 124,861 | Total Revenues | 121,184 | 20,392 | 212,766 | 114,638 |
Aeronautical Revenues | 108,375 | 10,288 | 196,820 | 97,220 | Aeronautical Revenues | 104,421 | 11,057 | 182,958 | 89,954 |
Non- Aeronatical Revenue | 17,271 | 7,455 | 32,365 | 23,391 | Non- Aeronatical Revenue | 14,466 | 5,441 | 27,073 | 18,831 |
Construction Revenues | 40,169 | 2,264 | 55,125 | 4,251 | Construction Revenues | 2,297 | 3,894 | 2,736 | 5,853 |
Income from Operations | 17,704 | 3,737 | 34,960 | 18,155 | Income from Operations | 16,848 | (6,115) | 32,039 | 6,819 |
EBITDA | 21,979 | 10,080 | 42,756 | 30,607 | EBITDA | 19,790 | (3,013) | 37,921 | 12,928 |
Mazatlán | Acapulco | ||||||||
Total Revenues | 100,200 | 20,935 | 214,815 | 144,311 | Total Revenues | 106,030 | 13,687 | 184,954 | 104,300 |
Aeronautical Revenues | 69,763 | 4,172 | 169,130 | 106,085 | Aeronautical Revenues | 56,503 | 6,722 | 119,380 | 73,303 |
Non- Aeronatical Revenue | 12,717 | 5,785 | 26,654 | 21,440 | Non- Aeronatical Revenue | 10,004 | 5,941 | 20,332 | 17,020 |
Construction Revenues | 17,720 | 10,978 | 19,031 | 16,787 | Construction Revenues | 39,522 | 1,024 | 45,242 | 13,977 |
Income from Operations | 10,981 | (8,230) | 29,867 | 8,247 | Income from Operations | 9,197 | (11,216) | 21,398 | 4,316 |
EBITDA | 15,286 | (3,563) | 38,454 | 17,491 | EBITDA | 19,888 | (46) | 42,646 | 26,608 |
Zihuatanejo | Other six airports | ||||||||
Total Revenues | 51,945 | 9,066 | 138,446 | 97,437 | Total Revenues | 339,289 | 75,781 | 676,408 | 409,013 |
Aeronautical Revenues | 37,024 | (571) | 112,867 | 70,183 | Aeronautical Revenues | 249,188 | 22,871 | 468,736 | 231,702 |
Non- Aeronatical Revenue | 5,730 | 3,012 | 13,973 | 11,078 | Non- Aeronatical Revenue | 32,914 | 16,583 | 62,830 | 51,425 |
Construction Revenues | 9,191 | 6,625 | 11,606 | 16,176 | Construction Revenues | 57,187 | 36,327 | 144,842 | 125,886 |
Income from Operations | 5,334 | (8,477) | 19,348 | 7,287 | Income from Operations | 39,519 | (33,620) | 81,104 | 3,711 |
EBITDA | 9,981 | (3,731) | 28,611 | 16,740 | EBITDA | 53,216 | (17,013) | 108,000 | 36,242 |
Consorcio Grupo Hotelero T2 (1) | Consorcio Hotelero Aeropuerto Monterrey (1) | ||||||||
Revenues | 62,544 | 7,828 | 125,783 | 64,988 | Revenues | 26,043 | 29 | 52,688 | 20,752 |
Income from Operations | 19,505 | (12,606) | 39,097 | 4,410 | Income from Operations | 8,410 | (5,770) | 17,172 | (701) |
EBITDA | 29,701 | (2,978) | 59,224 | 23,664 | EBITDA | 11,227 | (2,929) | 22,936 | 4,980 |
OMA VYNMSA Aero Industrial Park | |||||||||
Revenues | 10,068 | 14,264 | 19,762 | 26,222 | (1) Includes results of other equity-method subsidiaries | ||||
Income from Operations | 4,162 | 5,737 | 8,267 | 10,755 | |||||
EBITDA | 8,762 | 11,085 | 17,466 | 21,452 | |||||
15
Notes to the Financial Information
Financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"), and presented in accordance with IAS 34 "Interim Financial Reporting."
Unless stated otherwise, all comparisons of operating or financial results are made with respect to the comparable prior year period. The exchange rates used to convert foreign currency amounts were Ps. 19.1685 as of June 30, 2019, Ps.18.8727 as of December 31, 2019 and Ps. 23.1325 as of June 30, 2020.
Construction revenue, construction cost: IFRIC 12 "Service Concession Arrangements" addresses how service concession operators should account for the obligations they undertake and rights they receive in service concession arrangements. The concession contracts for each of OMA's airport subsidiaries establishes that the concessionaire is obligated to carry out improvements to the infrastructure transferred in exchange for the rights over the concession granted by the Federal Government. The latter will receive all the assets at the end of the concession period. As a result the concessionaire should recognize, using the percentage of completion method, the revenues and costs associated with the improvements to the concessioned assets. The amount of the revenues and costs so recognized should be the price that the concessionaire pays or would pay in an arm's length transaction for the execution of the works or the purchase of machinery and equipment, with no profit recognized for the construction or improvement. The application of IFRIC 12 does not affect operating income, net income, or EBITDA, but does affect calculations of margins based on total revenues.
Capital investments: includes investments in fixed assets (including investments in land, machinery, and equipment) and improvements to concessioned properties under the Master Development Plan (MDP) plus strategic investments.
Strategic Investments: Refers only to those capital investments additional to the Master Development Program.
Passengers and Terminal passengers: All references to passenger traffic volumes are to Terminal passengers, which includes passengers on the three types of aviation (commercial, charter, and general aviation), and excludes passengers in transit.
Adjusted EBITDA and Adjusted EBITDA margin: OMA defines Adjusted EBITDA as EBITDA less construction revenue plus construction expense and maintenance provision. We calculate the Adjusted EBITDA margin as Adjusted EBITDA divided by the sum of aeronautical revenue and non-aeronautical revenue. Construction revenue and construction cost do not affect cash flow generation and the maintenance provision corresponds to capital investments. OMA defines EBITDA as net income minus net comprehensive financing income, taxes, and depreciation and amortization. Neither Adjusted EBITDA nor EBITDA should 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. It should be noted that neither Adjusted EBITDA nor EBITDA is defined under IFRS, and may be calculated differently by different companies.
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Analyst Coverage
In accordance with the requirements of the Mexican Stock Exchange, the analysts covering OMA are:
Institución | Nombre | Institución | Nombre |
Actinver Casa de Bolsa | Ramón Ortiz | HSBC | Alexandre Falcao |
Bank of America Merrill Lynch | Alan Macías | Intercam Casa de Bolsa | Alejandra Marcos |
Banorte-IXE | José Espitia | Insight Investment Research | Robert Crimes |
Barclays Bank PLC | Pablo Monsiváis | Itaú BBA | Thais Cascello |
BBVA Bancomer | Mauricio Hernández Prida | J.P. Morgan | Fernando Abdalla |
Bradesco BBI | Rodolfo Ramos | Morgan Stanley | Josh Milberg / Lucas T Barbosa |
Citigroup | Stephen Trent | Santander | Rubén López / Pedro Bruno |
Credit Suisse | Felipe Vinagre | Scotiabank | Francisco Suárez |
Goldman Sachs | Bruno Armorim | Signum Research | Lucía Tamez |
Grupo Bursátil Mexicano (GBM) | Mauricio Martínez Vallejo | UBS Brasil CCTVM | Rogerio Araujo |
Vector | Marco Montañez | BTG Pactual | Lucas Marquiori |
Invex | Valeria Romo |
This report may contain forward-looking information and statements. Forward-looking statements are statements that are not historical facts. These statements are only predictions based on our current information and expectations and projections about future events. Forward-looking statements may be identified by the words "believe," "expect," "anticipate," "target," "estimate," or similar expressions. While OMA's management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and are generally beyond the control of OMA, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to, those discussed in our most recent annual report filed on Form 20-F under the caption "Risk Factors." OMA undertakes no obligation to update publicly its forward-looking statements, whether as a result of new information, future events, or otherwise.
About OMA
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., known as OMA, operates 13 international airports in nine states of central and northern Mexico. OMA's airports serve Monterrey, Mexico's third largest metropolitan area, the tourist destinations of Acapulco, Mazatlán, and Zihuatanejo, and nine other regional centers and border cities. OMA also operates the NH Collection Hotel inside Terminal 2 of the Mexico City airport and the Hilton Garden Inn at the Monterrey airport. OMA employs over 1,000 persons in order to offer passengers and clients airport and commercial services in facilities that comply with all applicable international safety, security, and ISO 9001:2008 environmental standards. OMA is listed on the Mexican Stock Exchange (OMA) and on the NASDAQ Global Select Market (OMAB). For more information, visit:
- Webpagehttp://ir.oma.aero
- Twitterhttp://twitter.com/OMAeropuertos
- Facebookhttps://www.facebook.com/OMAeropuertos
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Grupo Aeroportuario del Centro Norte SAB de CV published this content on 22 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 July 2020 22:30:09 UTC