Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (OMAB)
Filed: 16 Feb 21, 6:58am
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of February 2021
GRUPO AEROPORTUARIO DEL CENTRO NORTE, S.A.B. DE C.V.
(CENTRAL NORTH AIRPORT GROUP)
_________________________________________________________________
(Translation of Registrant’s Name Into English)
México
_________________________________________________________________
(Jurisdiction of incorporation or organization)
Torre Latitud, L501, Piso 5
Av. Lázaro Cárdenas 2225
Col. Valle Oriente, San Pedro Garza García
Nuevo León, México
_________________________________________________________________
(Address of principal executive offices)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
| Form 20-F X Form 40-F |
(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
| Yes No X |
(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .)
OMA Announces Fourth Quarter 2020
Operating and Financial Results
Mexico City, Mexico, February 15, 2021— 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 fourth quarter 2020.
Full year 2020 Summary
| ■ | Ps.1,506 in Capital investments and major maintenance included in the Master Development Plans (MDPs) plus strategic investments in 2020. |
| ■ | Passenger traffic decreased 52.3%, reaching 11.1 million passengers in 2020, as a consequence of the contingency generated by the outbreak of COVID-19. |
| ■ | In 2020, Adjusted EBITDA was Ps.2,549 million and the Adjusted EBITDA margin was 62.0%. |
4Q20 Summary
| ■ | Passenger traffic decreased 44.5%, reaching 3.3 million passengers. Passenger traffic showed a recovery during the fourth quarter compared to the decrease of 62.4% during 3Q20. The airports with the lowest decline in passengers, in percentage terms, compared to 4Q19 were Mazatlán, Culiacán, Reynosa and Zacatecas. |
| ■ | Capital investments and major maintenance included in the Master Development Plans (MDPs) plus strategic investments were Ps.472 million for the quarter. |
| (Thousand Passengers and Million Pesos) | 4Q19 | 4Q20 | % Var | 2019 | 2020 | % Var | ||||||||||
| Passenger Traffic | 5,952 | 3,305 | (44.5 | ) | 23,168 | 11,063 | (52.3 | ) | ||||||||
| Aeronautical Revenues | 1,442 | 919 | (36.3 | ) | 5,753 | 2,943 | (48.8 | ) | ||||||||
| Non-Aeronautical Revenues | 473 | 307 | (35.1 | ) | 1,820 | 1,171 | (35.6 | ) | ||||||||
| Aeronautical + Non-Aeronautical Revenues | 1,915 | 1,226 | (36.0 | ) | 7,572 | 4,114 | (45.7 | ) | ||||||||
| Construction Revenues | 348 | 396 | 13.9 | 955 | 1,254 | 31.3 | ||||||||||
| Total Revenues | 2,263 | 1,623 | (28.3 | ) | 8,527 | 5,367 | (37.1 | ) | ||||||||
| Adjusted EBITDA | 1,402 | 853 | (39.2 | ) | 5,563 | 2,549 | (54.2 | ) | ||||||||
| Adjusted EBITDA Margin (%) | 73.2% | 69.6% | 73.5% | 62.0% | ||||||||||||
| Income from Operations | 1,165 | 532 | (54.3 | ) | 4,855 | 1,721 | (64.5 | ) | ||||||||
| Operating Margin (%) | 51.5% | 32.8% | 56.9% | 32.1% | ||||||||||||
| Consolidated Net Income | 761 | 239 | (68.6 | ) | 3,227 | 1,098 | (66.0 | ) | ||||||||
| Net Income of Controlling Interest | 758 | 239 | (68.5 | ) | 3,220 | 1,094 | (66.0 | ) | ||||||||
| EPS (Ps.) | 1.94 | 0.61 | (68.4 | ) | 8.20 | 2.80 | (65.8 | ) | ||||||||
| EPADS (US$) | 0.82 | 0.25 | (70.0 | ) | 3.48 | 1.13 | (67.6 | ) | ||||||||
| MDP and Strategic Investments | 491 | 472 | (3.8 | ) | 1,357 | 1,506 | 11.0 |
OMA will hold its 4Q20 earnings conference call on February 16, 2021 at 11:00 am Eastern time, 10:00 am Mexico City time.
Conference call registration is available here. Upon registration, you will receive an email with all details to connect to the conference call.
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4Q20 Operating Results
Operations, Passengers, and Cargo
During the quarter, there were no new route openings or definitive cancellations. The number of seats offered decreased 36.4% compared to the same quarter of the previous year, due mainly to the number of routes suspended by the airlines.
Total passenger traffic decreased 44.5%. Of total traffic, 91.0% was domestic and 9.0% was international.
Domestic passenger traffic decreased 42.7% and international passenger traffic decreased 57.5%, which reflects restrictions on air travel in the international market.
The airports with the largest contribution to passenger traffic decline were:
| ■ | Monterrey (-47.6%), on its Mexico City, Guadalajara, and Tijuana routes. |
| ■ | Culiacán (-32.2%), on its Mexico City, Guadalajara and Tijuana routes. |
| ■ | Chihuahua (-45.0%), on its Mexico City, Monterrey and Guadalajara routes. |
| ■ | Ciudad Juárez (-43.0%), mainly on its Mexico City and Guadalajara routes. |
However, the Mazatlán, Culiacán, Reynosa, San Luis Potosí and Zacatecas airports showed a better performance in percentage terms than the rest of the airports compared to 4Q19.
| 4Q19 | 4Q20 | % Var | 2019 | 2020 | % Var | |||||||||||
| Available Seats | 8,050,523 | 5,120,419 | (36.4 | ) | 31,189,588 | 17,357,934 | (44.3 | ) | ||||||||
| Passenger Traffic: | ||||||||||||||||
| Domestic | 5,251,473 | 3,007,236 | (42.7 | ) | 20,416,764 | 9,877,697 | (51.6 | ) | ||||||||
| International | 700,029 | 297,671 | (57.5 | ) | 2,751,296 | 1,184,991 | (56.9 | ) | ||||||||
| Total Passenger Traffic | 5,951,502 | 3,304,907 | (44.5 | ) | 23,168,060 | 11,062,688 | (52.3 | ) | ||||||||
| Commercial Aviation (Regular and Charter) | 5,909,850 | 3,267,069 | (44.7 | ) | 22,999,049 | 10,935,746 | (52.5 | ) | ||||||||
| General Aviation | 41,652 | 37,838 | (9.2 | ) | 169,011 | 126,942 | (24.9 | ) | ||||||||
| Cargo Units | 248,675 | 309,539 | 24.5 | 976,203 | 932,419 | (4.5 | ) | |||||||||
| Workload Units | 6,200,177 | 3,614,446 | (41.7 | ) | 24,144,263 | 11,995,107 | (50.3 | ) | ||||||||
| Flight Operations (Takeoffs and Landings): | ||||||||||||||||
| Domestic | 73,044 | 55,064 | (24.6 | ) | 294,154 | 187,239 | (36.3 | ) | ||||||||
| International | 11,735 | 7,435 | (36.6 | ) | 45,926 | 26,917 | (41.4 | ) | ||||||||
| Total Flight Operations | 84,779 | 62,499 | (26.3 | ) | 340,080 | 214,156 | (37.0 | ) |
Commercial Operations
The commercial space occupancy rate in the passenger terminals was 89.9% as of December 31, 2020. During the quarter, a total of 53 m2 in commercial spaces were vacated.
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Hotel Services
| ■ | The NH Collection Terminal 2 Hotel had a 41.6% occupancy rate. The average room rate was Ps.1,901 per night, during the quarter. |
| ■ | Hilton Garden Inn had a 24.8% occupancy rate. The average room rate was Ps.1,833 per night during the quarter. |
Freight Logistics Services
| ■ | OMA Carga’s revenues increased by 6.0% due to higher handling, storage and custody activity related to air import cargo, as well as handling activity related to air export cargo during the quarter. Total tonnage handled increased 4.4% to 7,938 metric tons. |
Industrial Services
| ■ | OMA VYNMSA Aero Industrial Park: Revenues reached Ps.16 million, an increase of 43.1% compared to 4Q19. The increase is due to additional revenues generated from three warehouses rented during 2020, which started generating revenues in the quarter. |
Consolidated Financial Results
Revenues
Aeronautical revenues decreased 36.3%.
| (Ps. Thousands) | 4Q19 | 4Q20 | % Var | 2019 | 2020 | % Var | ||||||||||
| Domestic Passenger Charges | 954,657 | 633,240 | (33.7 | ) | 3,776,401 | 1,857,559 | (50.8 | ) | ||||||||
| International Passenger Charges | 290,381 | 142,923 | (50.8 | ) | 1,207,989 | 542,933 | (55.1 | ) | ||||||||
| Other Aeronautical Services, Regulated Leases and Access Rights | 197,287 | 143,023 | (27.5 | ) | 768,272 | 542,065 | (29.4 | ) | ||||||||
| Aeronautical Revenues | 1,442,325 | 919,186 | (36.3 | ) | 5,752,662 | 2,942,558 | (48.8 | ) | ||||||||
| Aeronautical Revenues/Passenger (Ps.) | 242.3 | 278.1 | 14.8 | 248.3 | 266.0 | 7.1 |
Non-aeronautical revenues decreased 35.1%.
Commercial revenues decreased 37.7%. The line items with the largest variations were:
| ■ | Parking, -53.5%, due to the reduction in short and long stay operations. The decrease in mostly driven by a slower passenger traffic recovery in Monterrey Airport compared to the average of our airports. |
4
| ■ | Restaurants and Retail, -37.2% and -38.8%, respectively, given that the majority of revenues in the quarter was related to fixed or minimum rental levels as no participation on sales was generated. Additionally, we applied certain support programs for our tenants during the quarter. |
| (Ps. Thousands) | 4Q19 | 4Q20 | % Var | 2019 | 2020 | % Var | ||||||||||
| Commercial Activities: | ||||||||||||||||
| Parking | 70,900 | 32,945 | (53.5 | ) | 279,463 | 126,815 | (54.6 | ) | ||||||||
| Advertising | 18,718 | 11,010 | (41.2 | ) | 76,200 | 59,695 | (21.7 | ) | ||||||||
| Retail | 28,165 | 17,246 | (38.8 | ) | 106,084 | 64,486 | (39.2 | ) | ||||||||
| Duty Free | 4,988 | 2,100 | (57.9 | ) | 18,470 | 9,640 | (47.8 | ) | ||||||||
| Restaurants | 40,026 | 25,156 | (37.2 | ) | 144,374 | 87,499 | (39.4 | ) | ||||||||
| Car Rentals | 37,477 | 33,599 | (10.3 | ) | 149,454 | 111,037 | (25.7 | ) | ||||||||
| Passenger Services | 1,126 | 374 | (66.8 | ) | 4,127 | 3,281 | (20.5 | ) | ||||||||
| Time Shares & Hotel Promotion | 4,177 | 2,282 | (45.4 | ) | 16,663 | 12,683 | (23.9 | ) | ||||||||
| Communications and Networks | 4,177 | 4,229 | 1.2 | 16,006 | 17,800 | 11.2 | ||||||||||
| VIP Lounges | 15,148 | 10,009 | (33.9 | ) | 51,176 | 36,538 | (28.6 | ) | ||||||||
| Financial Services | 2,821 | 1,917 | (32.1 | ) | 10,367 | 7,853 | (24.3 | ) | ||||||||
| Other Services (incl. marketing and cost recoveries) | 11,926 | 8,515 | (28.6 | ) | 43,542 | 34,659 | (20.4 | ) | ||||||||
| Total Revenues from Commercial Activities | 239,648 | 149,383 | (37.7 | ) | 915,927 | 571,987 | (37.6 | ) |
Diversification revenues decreased 33.3%, mainly due to lower revenues from hotel services.
| (Ps. Thousands) | 4Q19 | 4Q20 | % Var | 2019 | 2020 | % Var | ||||||||||
| Diversification Activities: | ||||||||||||||||
| Hotel Services | 90,956 | 31,493 | (65.4 | ) | 357,032 | 141,678 | (60.3 | ) | ||||||||
| OMA Carga (Freight Logistics Service) | 49,763 | 52,746 | 6.0 | 194,936 | 183,382 | (5.9 | ) | |||||||||
| Real Estate Services | 4,996 | 3,447 | (31.0 | ) | 18,181 | 16,711 | (8.1 | ) | ||||||||
| Industrial Services | 10,960 | 15,681 | 43.1 | 39,451 | 51,272 | 30.0 | ||||||||||
| Other Services (incl. marketing and cost recoveries) | 1,336 | 1,988 | 48.7 | 4,966 | 8,038 | 61.9 | ||||||||||
| Total Revenues from Diversification Activities | 158,010 | 105,355 | (33.3 | ) | 614,565 | 401,082 | (34.7 | ) | ||||||||
| Complementary Activities: | ||||||||||||||||
| Checked Baggage Screening | 44,616 | 25,791 | (42.2 | ) | 175,006 | 86,491 | (50.6 | ) | ||||||||
| Other Leases | 21,328 | 20,578 | (3.5 | ) | 83,477 | 85,729 | 2.7 | |||||||||
| Access Rights | 6,580 | 3,911 | (40.6 | ) | 19,709 | 15,819 | (19.7 | ) | ||||||||
| Other Services (incl. marketing and cost recoveries) | 2,771 | 2,035 | (26.6 | ) | 10,922 | 9,932 | (9.1 | ) | ||||||||
| Total Revenues from Complementary Activities | 75,294 | 52,315 | (30.5 | ) | 289,113 | 197,971 | (31.5 | ) | ||||||||
| Non-Aeronautical Revenues | 472,953 | 307,053 | (35.1 | ) | 1,819,605 | 1,171,039 | (35.6 | ) | ||||||||
| Non-Aeronautical Revenues/Passenger (Ps.) | 79.5 | 92.9 | 16.9 | 78.5 | 105.9 | 34.8 |
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.
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| (Ps. Thousands) | 4Q19 | 4Q20 | % Var | 2019 | 2020 | % Var | ||||||||||
| Aeronautical Revenues | 1,442,325 | 919,186 | (36.3 | ) | 5,752,662 | 2,942,558 | (48.8 | ) | ||||||||
| Non-Aeronautical Revenues | 472,953 | 307,053 | (35.1 | ) | 1,819,605 | 1,171,039 | (35.6 | ) | ||||||||
| Aeronautical + Non-Aeronautical Revenues | 1,915,278 | 1,226,239 | (36.0 | ) | 7,572,267 | 4,113,597 | (45.7 | ) | ||||||||
| Construction Revenues | 347,839 | 396,331 | 13.9 | 954,834 | 1,253,869 | 31.3 | ||||||||||
| Total Revenues | 2,263,117 | 1,622,570 | (28.3 | ) | 8,527,101 | 5,367,466 | (37.1 | ) | ||||||||
| Aeronautical Revenues + Non-Aeronautical Revenues / Passenger (Ps.) | 321.8 | 371.0 | 15.3 | 326.8 | 371.8 | 13.8 |
Costs and Operating Expenses
The sum of cost of airport services and general and administrative expenses (G&A) decreased 17.7%, mainly due to lower payroll expenses as a result of the reduction of headcount applied during 3Q20, as well as to a decrease in electricity and subcontracted services expenses, as a result of the cost reduction initiatives implemented by the company during 2020.
| (Ps. Thousands) | 4Q19 | 4Q20 | % Var | 2019 | 2020 | % Var | ||||||||||
| Payroll | 141,421 | 123,716 | (12.5 | ) | 514,092 | 511,117 | (0.6 | ) | ||||||||
| Contracted Services (Security, Cleaning and Professional Services) | 67,377 | 57,273 | (15.0 | ) | 276,119 | 226,989 | (17.8 | ) | ||||||||
| Minor Maintenance | 32,909 | 26,777 | (18.6 | ) | 174,019 | 125,671 | (27.8 | ) | ||||||||
| Basic Services (Electricity, Water, Telephone) | 26,993 | 16,640 | (38.4 | ) | 101,012 | 65,946 | (34.7 | ) | ||||||||
| Materials and Supplies | 9,721 | 8,378 | (13.8 | ) | 32,338 | 32,876 | 1.7 | |||||||||
| Insurance | 9,105 | 9,110 | 0.1 | 29,640 | 32,792 | 10.6 | ||||||||||
| Other costs and expenses | 43,606 | 30,732 | (29.5 | ) | 168,765 | 176,680 | 4.7 | |||||||||
| Cost of Airport Services + G&A | 331,133 | 272,627 | (17.7 | ) | 1,295,984 | 1,172,070 | (9.6 | ) | ||||||||
| Cost of Hotel Services | 50,867 | 24,878 | (51.1 | ) | 194,869 | 104,133 | (46.6 | ) | ||||||||
| Cost of Industrial Park Services | 1,691 | 2,069 | 22.4 | 6,019 | 7,813 | 29.8 | ||||||||||
| Subtotal (Cost of Services + G&A) | 383,691 | 299,574 | (21.9 | ) | 1,496,871 | 1,284,016 | (14.2 | ) | ||||||||
| Subtotal (Cost of Services + G&A) / Passenger (Ps.) | 64.5 | 90.6 | 40.6 | 64.6 | 116.1 | 79.6 |
The major maintenance provision was Ps.208 million, which reflects an update to such provision as a result of the approval of the Master Development Program for the period 2021-2025. The outstanding balance of the maintenance provision as of December 31, 2020 was Ps. 1,318 million.
The airport concession tax decreased 40.4% as a result of the decrease in revenues; technical assistance fee decreased 49.6%.
As a result of the foregoing, total operating costs and expenses decreased 0.7%.
| (Ps. Thousands) | 4Q19 | 4Q20 | % Var | 2019 | 2020 | % Var | ||||||||||
| Cost of Services | 237,965 | 170,524 | (28.3 | ) | 954,207 | 765,958 | (19.7 | ) | ||||||||
| Administrative Expenses (G&A) | 145,726 | 129,050 | (11.4 | ) | 542,664 | 518,058 | (4.5 | ) | ||||||||
| Subtotal (Cost of Services + G&A) | 383,691 | 299,574 | (21.9 | ) | 1,496,871 | 1,284,016 | (14.2 | ) | ||||||||
| Major Maintenance Provision | 133,812 | 208,316 | 55.7 | 292,324 | 392,531 | 34.3 | ||||||||||
| Construction Cost | 347,839 | 396,331 | 13.9 | 954,834 | 1,253,869 | 31.3 | ||||||||||
| Concession Taxes | 93,164 | 55,496 | (40.4 | ) | 363,561 | 199,202 | (45.2 | ) | ||||||||
| Technical Assistance Fee | 36,076 | 18,198 | (49.6 | ) | 150,108 | 81,164 | (45.9 | ) | ||||||||
| Depreciation & Amortization | 104,019 | 112,476 | 8.1 | 415,252 | 435,344 | 4.8 | ||||||||||
| Other (Income) Expense - Net | (103 | ) | (7 | ) | (93.2 | ) | (1,155 | ) | (128 | ) | (88.9 | ) | ||||
| Total Operating Costs and Expenses | 1,098,498 | 1,090,384 | (0.7 | ) | 3,671,795 | 3,645,998 | (0.7 | ) |
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Operating Income and Adjusted EBITDA
Operating Income was Ps.532 million, with an operating margin of 32.8%.
Adjusted EBITDA was Ps.853 million, with an Adjusted EBITDA margin of 69.6%.
| (Ps. Thousands) | 4Q19 | 4Q20 | % Var | 2019 | 2020 | % Var | ||||||||||
| Consolidated Net Income | 761,026 | 239,291 | (68.6 | ) | 3,227,434 | 1,097,879 | (66.0 | ) | ||||||||
| - Financing (Expense) Income | (117,799 | ) | (269,549 | ) | 128.8 | (255,650 | ) | (229,088 | ) | (10.4 | ) | |||||
| + Income Taxes | 285,794 | 23,346 | (91.8 | ) | 1,372,222 | 394,501 | (71.3 | ) | ||||||||
| Operating Income | 1,164,619 | 532,186 | (54.3 | ) | 4,855,306 | 1,721,468 | (64.5 | ) | ||||||||
| Operating Margin (%) | 51.5% | 32.8% | 56.9% | 32.1% | ||||||||||||
| + Depreciation and Amortization | 104,019 | 112,476 | 8.1 | 415,252 | 435,344 | 4.8 | ||||||||||
| EBITDA | 1,268,638 | 644,662 | (49.2 | ) | 5,270,558 | 2,156,812 | (59.1 | ) | ||||||||
| EBITDA Margin (%) | 56.1% | 39.7% | 61.8% | 40.2% | ||||||||||||
| - Construction Revenue | 347,839 | 396,331 | 13.9 | 954,834 | 1,253,869 | 31.3 | ||||||||||
| + Construction Cost | 347,839 | 396,331 | 13.9 | 954,834 | 1,253,869 | 31.3 | ||||||||||
| + Major Maintenance Provision | 133,812 | 208,316 | 55.7 | 292,324 | 392,531 | 34.3 | ||||||||||
| Adjusted EBITDA | 1,402,450 | 852,978 | (39.2 | ) | 5,562,882 | 2,549,343 | (54.2 | ) | ||||||||
| Adjusted EBITDA Margin: Adjusted EBITDA/(Aeronautical Revenue + Non-Aeronautical Revenue) (%) | 73.2% | 69.6% | 73.5% | 62.0% |
Financing Income, Taxes, and Net Income
Financing Expense was Ps.270 million, mainly due to foreign exchange loss and interest expense recorded in the quarter.
| (Ps. thousand) | 4Q19 | 4Q20 | % Var | 2019 | 2020 | % Var | ||||||||||
| Interest Income | 41,468 | 18,177 | (56.2 | ) | 171,236 | 111,889 | (34.7 | ) | ||||||||
| Interest (Expense) | (95,721 | ) | (104,730 | ) | 9.4 | (376,008 | ) | (420,499 | ) | 11.8 | ||||||
| Exchange Gain (Loss), net | (63,546 | ) | (182,996 | ) | 188.0 | (50,878 | ) | 79,522 | n.a. | |||||||
| Total Financing Income (Expense) | (117,799 | ) | (269,549 | ) | 128.8 | (255,650 | ) | (229,088 | ) | (10.4 | ) |
Taxes were Ps.23 million, and the effective tax rate was 8.9%, mainly due to the impact in deferred taxes resulting from the update to the major maintenance provision.
Consolidated net income in the quarter was Ps.239 million.
Earnings per share, based on net income of the controlling interest, was Ps.0.61; earnings per ADS was US$0.25. Each ADS represents eight Series B shares.
| (Ps. thousand) | 4Q19 | 4Q20 | % Var | 2019 | 2020 | % Var | ||||||||||
| Consolidated Net Income | 761,026 | 239,291 | (68.6 | ) | 3,227,434 | 1,097,879 | (66.0 | ) | ||||||||
| Net income margin % | 33.6% | 14.7% | 37.8% | 20.5% | ||||||||||||
| Non-controlling interest | 2,974 | 235 | (92.1 | ) | 7,636 | 3,521 | (53.9 | ) | ||||||||
| Net income of controlling Interet | 758,052 | 239,056 | (68.5 | ) | 3,219,798 | 1,094,358 | (66.0 | ) | ||||||||
| Earnings per Share, Ps. | 1.94 | 0.61 | (68.4 | ) | 8.20 | 2.80 | (65.8 | ) | ||||||||
| Earnings per ADS, US$ | 0.82 | 0.25 | (70.0 | ) | 3.48 | 1.13 | (67.6 | ) |
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MDP and Strategic Investments
In 4Q20, capital investments and major maintenance works in the MDPs and strategic investments totaled Ps.472 million, comprised of Ps.396 million in improvements to concessioned assets, Ps.46 million in major maintenance, and Ps.30 million in strategic investments.
The most important investment expenditures included:
| Airport | Project | Status | ||||
| MDP Investments | ||||||
| Zacatecas | Minor rehabilitation of runway (02-20) | In Process | ||||
| 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 | ||||
| Monterrey | Major and minor rehabilitation of runway and taxiways | In Process | ||||
| Monterrey | Construction of cargo platform and expansion of taxiway | In Process | ||||
| Tampico | Minor rehabilitation of runway | Finished | ||||
| Strategic Investments | ||||||
| Monterrey | Industrial park - Construction of industrial warehouse | In Process | ||||
| Ciudad Juárez | Long-stay parking expansion | In Process | ||||
| Monterrey | Industrial park - Expansion of industrial warehouse | Finished | ||||
| Monterrey | Industrial park - Expansion of industrial warehouse | Finished | ||||
Debt
| (Ps. Thousands) | Maturity | Interest Rate | December 31, 2019 | December 31, 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 | ||||||||||||
| Finance CAPEX and Refinance Debt | Bullet | |||||||||||||||
| 7-yr Bond, Ps. 3,000 mm: OMA14 | 2021 | 6.85% | 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 | 49,575 | 13,503 | ||||||||||||
| Finance Security Equipment | Qtly. Amort. | |||||||||||||||
| Subtotal Long-Term Debt | 4,549,575 | 4,513,503 | ||||||||||||||
| Less: Current Portion of Long-Term Debt | (36,851 | ) | (3,013,502 | ) | ||||||||||||
| Less: Commissions and Financing Expenses | (5,967 | ) | (3,114 | ) | ||||||||||||
| Total Long-Term Debt | 4,506,758 | 1,496,886 | ||||||||||||||
| Plus: Financial leases | 220,860 | 194,763 | ||||||||||||||
| Plus: Current Portion of Long-Term Debt | 36,851 | 3,013,502 | ||||||||||||||
| Total Debt + Financial leases | 4,764,469 | 4,705,151 | ||||||||||||||
| Mexican peso denominated debt | 98.9% | 99.7% | ||||||||||||||
| U.S. dollar denominated debt | 1.1% | 0.3% | ||||||||||||||
| Net Debt (Includes financial leases) | 1,334,596 | 1,746,347 | ||||||||||||||
| Net Debt / Adjusted EBITDA (x) | 0.24 | 0.69 |
Derivatives
As of the date of this report, OMA has no financial derivatives exposure.
8
Cash Flow Statement
In 4Q20, cash flows from operating activities generated cash of Ps.602 million, compared to a cash generation of Ps.954 million in the same period of 2019. The decrease in cash generation was mainly due to the lower income before taxes.
Investing activities used cash of Ps.366 million in the fourth quarter. Outflows are mainly related to construction works executed during 3Q20. Financing activities generated an outflow of Ps.104 million, mainly due to interest paid of Ps.80 million.
The net increase in cash resulting from operating, investing and financing activities was Ps. 132 million. However, due to the effect of the appreciation of the Mexican peso against the U.S. dollar in the quarter, which resulted in an impact of Ps.195 million, the Cash and Cash Equivalents balance at December 31, 2020 was Ps.2,959 million.
| From October 1 to December 31, | From January 1 to December 31, | |||||||||||||||||
| (Ps. Thousands) | 2019 | 2020 | %Var | 2019 | 2020 | %Var | ||||||||||||
| Income Before Taxes | 1,046,820 | 262,637 | (74.9 | ) | 4,599,656 | 1,492,380 | (67.6 | ) | ||||||||||
| Items not affecting Operating Activities, net | 350,102 | 596,630 | 70.4 | 954,951 | 1,076,590 | 12.7 | ||||||||||||
| Changes in operational assets and liabilities, net | (443,147 | ) | (257,454 | ) | (41.9 | ) | (1,838,084 | ) | (1,265,493 | ) | (31.2 | ) | ||||||
| Net Flow from Operating Activities | 953,776 | 601,813 | (36.9 | ) | 3,716,523 | 1,303,477 | (64.9 | ) | ||||||||||
| Net Flow from Investing Activities | (443,022 | ) | (366,320 | ) | (17.3 | ) | (952,227 | ) | (1,324,430 | ) | 39.1 | |||||||
| Net Flow from Financing Activities | (141,118 | ) | (103,588 | ) | (26.6 | ) | (2,246,461 | ) | (528,888 | ) | (76.5 | ) | ||||||
| Net Increase (Reduction) in Cash and Cash Equivalents | 369,636 | 131,905 | (64.3 | ) | 517,835 | (549,840 | ) | n.a. | ||||||||||
| Effect of change for fair value of cash and equivalents | (60,584 | ) | (194,857 | ) | 221.6 | (46,865 | ) | 78,771 | n.a. | |||||||||
| Cash and Equivalents at Beginning of Period | 3,120,821 | 3,021,756 | (3.2 | ) | 2,958,902 | 3,429,873 | 15.9 | |||||||||||
| Cash and Equivalents at End of Period | 3,429,873 | 2,958,804 | (13.7 | ) | 3,429,873 | 2,958,804 | (13.7 | ) | ||||||||||
COVID-19 Update
During 4Q20, passenger traffic had a gradual recovery compared to 2Q20 and 3Q20, line with the reactivation level of economic activities allowed during the quarter, according to the epidemiological risk traffic light system established by the Mexican Federal Government, as well as the different international restrictions established during 4Q20. Economic activities and domestic travel, mainly to regional and tourist destinations continued to gradually reactivate during the quarter. Total passenger traffic reached 3.3 million during 4Q20, an increase of 43% versus 3Q20. As of December 31, 2020, OMA had 140 origin-destination routes in operation, compared to 117 origin-destination routes in operation as of September 30, 2020 and 183 as of December 31, 2019.
The uncertainty generated from a second wave of worldwide contagions from COVID-19 and the return to red (maximum risk) by the end of 2020 and early 2021 in several states of the country, including Nuevo León and Mexico City, resulted in a deceleration in passenger traffic recovery. Beginning in February, the level of contagions has begun to recede, and the epidemiological risk light system has been adjusted downwards. As of the date of this report, 1 state in which OMA operates remained in red, 4 states are in orange and 4 in yellow.
9
Additionally, as a result of the measures implemented by the United States with respect to the mandatory application of COVID-19 tests for all inbound flights, OMA has installed COVID-19 testing modules in 11 of our airports with international flight operations.
OMA expects passenger traffic to resume its recovery path in the following months, as contagion levels decrease and epidemiological risk traffic light in the states where we operate allow for increased mobility and economic activity.
It is important to mention that our airports continue to apply and communicate the health measures that have been implemented and we work in coordination with the health and aeronautical authorities of the country, in order to look after the health of passengers, our personnel and service providers, and in that way, support the recovery of passenger confidence.
Relevant Events in the Quarter
Approval of Master Development Program (MDP) for the 2021-2025 period. On November 30, 2020, OMA announced that it received approval from the Ministry of Communications and Transportation (SCT), through the Federal Civil Aviation Agency (AFAC), of the Master Development Program for each of its thirteen airports, corresponding to the 2021-2025 period. The committed investment amounts were Ps.11,980 million, expressed in pesos of December 31, 2019.
10
| Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. |
| Passenger Traffic |
(Terminal Passengers - Excludes Transit Passengers)
| Total Passengers | 4Q19 | 4Q20 | % Var | 2019 | 2020 | % Var | ||||||||||||||||||
| Acapulco | 220,707 | 104,509 | (52.6 | ) | 875,315 | 395,948 | (54.8 | ) | ||||||||||||||||
| Ciudad Juárez | 402,805 | 229,408 | (43.0 | ) | 1,597,471 | 790,009 | (50.5 | ) | ||||||||||||||||
| Culiacán | 628,215 | 425,823 | (32.2 | ) | 2,458,863 | 1,373,102 | (44.2 | ) | ||||||||||||||||
| Chihuahua | 437,418 | 240,633 | (45.0 | ) | 1,699,816 | 818,151 | (51.9 | ) | ||||||||||||||||
| Durango | 150,179 | 79,725 | (46.9 | ) | 527,004 | 271,231 | (48.5 | ) | ||||||||||||||||
| Mazatlán | 319,450 | 231,186 | (27.6 | ) | 1,161,155 | 740,306 | (36.2 | ) | ||||||||||||||||
| Monterrey | 2,858,718 | 1,496,738 | (47.6 | ) | 11,176,555 | 4,994,170 | (55.3 | ) | ||||||||||||||||
| Reynosa | 118,821 | 76,158 | (35.9 | ) | 480,524 | 229,058 | (52.3 | ) | ||||||||||||||||
| San Luis Potosí | 172,181 | 98,712 | (42.7 | ) | 643,224 | 309,311 | (51.9 | ) | ||||||||||||||||
| Tampico | 184,997 | 79,060 | (57.3 | ) | 739,143 | 270,835 | (63.4 | ) | ||||||||||||||||
| Torreón | 181,997 | 96,138 | (47.2 | ) | 708,563 | 320,820 | (54.7 | ) | ||||||||||||||||
| Zacatecas | 124,182 | 72,309 | (41.8 | ) | 475,241 | 232,352 | (51.1 | ) | ||||||||||||||||
| Zihuatanejo | 151,832 | 74,508 | (50.9 | ) | 625,186 | 317,395 | (49.2 | ) | ||||||||||||||||
| Total | 5,951,502 | 3,304,907 | (44.5 | ) | 23,168,060 | 11,062,688 | (52.3 | ) | ||||||||||||||||
| Domestic Passengers | 4Q19 | 4Q20 | % Var | 2019 | 2020 | % Var | ||||||||||||||||||
| Acapulco | 209,918 | 100,008 | (52.4 | ) | 814,636 | 361,029 | (55.7 | ) | ||||||||||||||||
| Ciudad Juárez | 400,925 | 228,901 | (42.9 | ) | 1,590,968 | 787,955 | (50.5 | ) | ||||||||||||||||
| Culiacán | 619,441 | 421,959 | (31.9 | ) | 2,422,274 | 1,359,403 | (43.9 | ) | ||||||||||||||||
| Chihuahua | 403,317 | 218,137 | (45.9 | ) | 1,565,183 | 752,693 | (51.9 | ) | ||||||||||||||||
| Durango | 123,349 | 63,068 | (48.9 | ) | 432,766 | 215,713 | (50.2 | ) | ||||||||||||||||
| Mazatlán | 234,703 | 201,059 | (14.3 | ) | 847,269 | 565,842 | (33.2 | ) | ||||||||||||||||
| Monterrey | 2,489,169 | 1,358,128 | (45.4 | ) | 9,756,566 | 4,488,172 | (54.0 | ) | ||||||||||||||||
| Reynosa | 117,974 | 75,181 | (36.3 | ) | 476,890 | 226,977 | (52.4 | ) | ||||||||||||||||
| San Luis Potosí | 124,794 | 70,677 | (43.4 | ) | 454,076 | 221,102 | (51.3 | ) | ||||||||||||||||
| Tampico | 171,951 | 72,344 | (57.9 | ) | 684,821 | 250,838 | (63.4 | ) | ||||||||||||||||
| Torreón | 164,751 | 87,282 | (47.0 | ) | 637,638 | 293,986 | (53.9 | ) | ||||||||||||||||
| Zacatecas | 86,168 | 48,659 | (43.5 | ) | 327,830 | 160,670 | (51.0 | ) | ||||||||||||||||
| Zihuatanejo | 105,013 | 61,833 | (41.1 | ) | 405,847 | 193,317 | (52.4 | ) | ||||||||||||||||
| Total | 5,251,473 | 3,007,236 | (42.7 | ) | 20,416,764 | 9,877,697 | (51.6 | ) | ||||||||||||||||
| International Passengers | 4Q19 | 4Q20 | % Var | 2019 | 2020 | % Var | ||||||||||||||||||
| Acapulco | 10,789 | 4,501 | (58.3 | ) | 60,679 | 34,919 | (42.5 | ) | ||||||||||||||||
| Ciudad Juárez | 1,880 | 507 | (73.0 | ) | 6,503 | 2,054 | (68.4 | ) | ||||||||||||||||
| Culiacán | 8,774 | 3,864 | (56.0 | ) | 36,589 | 13,699 | (62.6 | ) | ||||||||||||||||
| Chihuahua | 34,101 | 22,496 | (34.0 | ) | 134,633 | 65,458 | (51.4 | ) | ||||||||||||||||
| Durango | 26,830 | 16,657 | (37.9 | ) | 94,238 | 55,518 | (41.1 | ) | ||||||||||||||||
| Mazatlán | 84,747 | 30,127 | (64.5 | ) | 313,886 | 174,464 | (44.4 | ) | ||||||||||||||||
| Monterrey | 369,549 | 138,610 | (62.5 | ) | 1,419,989 | 505,998 | (64.4 | ) | ||||||||||||||||
| Reynosa | 847 | 977 | 15.3 | 3,634 | 2,081 | (42.7 | ) | |||||||||||||||||
| San Luis Potosí | 47,387 | 28,035 | (40.8 | ) | 189,148 | 88,209 | (53.4 | ) | ||||||||||||||||
| Tampico | 13,046 | 6,716 | (48.5 | ) | 54,322 | 19,997 | (63.2 | ) | ||||||||||||||||
| Torreón | 17,246 | 8,856 | (48.6 | ) | 70,925 | 26,834 | (62.2 | ) | ||||||||||||||||
| Zacatecas | 38,014 | 23,650 | (37.8 | ) | 147,411 | 71,682 | (51.4 | ) | ||||||||||||||||
| Zihuatanejo | 46,819 | 12,675 | (72.9 | ) | 219,339 | 124,078 | (43.4 | ) | ||||||||||||||||
| Total | 700,029 | 297,671 | (57.5 | ) | 2,751,296 | 1,184,991 | (56.9 | ) |
11
| Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. |
| Unaudited Consolidated Balance Sheet |
(Thousands of Pesos)
| December 31, 2019 | December 31, 2020 | % Var Dec20/Dec19 | ||||||||||
| Assets | ||||||||||||
| Current Assets | ||||||||||||
| Cash and Cash Equivalents | 3,429,873 | 2,958,804 | (13.7 | ) | ||||||||
| Trade Accounts Receivable - Net | 757,756 | 777,952 | 2.7 | |||||||||
| Trade Accounts Receivable from Related Parties | 181,989 | 214,209 | 17.7 | |||||||||
| Recoverable Taxes | 295,768 | 542,365 | 83.4 | |||||||||
| Advances to Contractors | 102,776 | 115,233 | 12.1 | |||||||||
| Other Current Assets | 42,742 | 66,575 | 55.8 | |||||||||
| Total Current Assets | 4,810,904 | 4,675,138 | (2.8 | ) | ||||||||
| Land, Buildings, Machinery and Equipment - Net | 2,647,101 | 2,700,469 | 2.0 | |||||||||
| Investments in Airport Concessions - Net | 9,267,111 | 10,229,656 | 10.4 | |||||||||
| Rights of use of leased assets, net | 210,788 | 178,247 | (15.4 | ) | ||||||||
| Other Assets - Net | 44,053 | 34,621 | (21.4 | ) | ||||||||
| Deferred Taxes | 297,004 | 317,758 | 7.0 | |||||||||
| Total Assets | 17,276,961 | 18,135,889 | 5.0 | |||||||||
| Liabilities and Stockholder’s Equity | ||||||||||||
| Current Liabilities | ||||||||||||
| Current Portion of Long-Term Debt | 36,851 | 3,013,502 | 8,077.5 | |||||||||
| Current Portion of Major Maintenance Provision | 151,554 | 443,570 | 192.7 | |||||||||
| Current Portion of Financial Leases | 72,320 | 25,732 | (64.4 | ) | ||||||||
| Trade Accounts Payable | 196,791 | 148,357 | (24.6 | ) | ||||||||
| Taxes and Accrued Expenses | 590,263 | 370,188 | (37.3 | ) | ||||||||
| Accounts Payable to Related Parties | 187,515 | 167,704 | (10.6 | ) | ||||||||
| Total Current Liabilities | 1,235,294 | 4,169,053 | 237.5 | |||||||||
| Long-Term Debt | 4,506,758 | 1,496,886 | (66.8 | ) | ||||||||
| Guarantee Deposits | 387,656 | 350,738 | (9.5 | ) | ||||||||
| Employee Benefits | 106,159 | 115,691 | 9.0 | |||||||||
| Major Maintenance Provision | 802,342 | 874,415 | 9.0 | |||||||||
| Financial Leases | 148,540 | 169,031 | 13.8 | |||||||||
| Deferred Taxes | 202,717 | 133,828 | (34.0 | ) | ||||||||
| Total liabilities | 7,389,466 | 7,309,642 | (1.1 | ) | ||||||||
| Common Stock | 301,739 | 300,822 | (0.3 | ) | ||||||||
| Additional paid-in capital | 29,786 | 29,786 | — | |||||||||
| Retained Earnings | 8,121,937 | 8,824,666 | 8.7 | |||||||||
| Share Repurchase Reserve | 1,257,454 | 1,500,000 | 19.3 | |||||||||
| Labor Obligations | 4,194 | (4,933 | ) | n.a. | ||||||||
| Non-Controlling Interest | 172,385 | 175,906 | 2.0 | |||||||||
| Stockholders’ Equity | 9,887,495 | 10,826,247 | 9.5 | |||||||||
| Total Liabilities and Stockholder’s Equity | 17,276,961 | 18,135,889 | 5.0 | |||||||||
12
| Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. |
| Unaudited Consolidated Statement of Comprehensive Income |
(Thousands of Pesos)
| 4Q19 | 4Q20 | % Var | 2019 | 2020 | % Var | |||||||||||||||||||
| Revenues | ||||||||||||||||||||||||
| Aeronautical Revenues | 1,442,325 | 919,186 | (36.3 | ) | 5,752,662 | 2,942,558 | (48.8 | ) | ||||||||||||||||
| Non-Aeronautical Revenues | 472,953 | 307,053 | (35.1 | ) | 1,819,605 | 1,171,039 | (35.6 | ) | ||||||||||||||||
| Aeronautical Revenues + Non-Aeronautical Revenues | 1,915,278 | 1,226,239 | (36.0 | ) | 7,572,267 | 4,113,597 | (45.7 | ) | ||||||||||||||||
| Construction Revenues | 347,839 | 396,331 | 13.9 | 954,834 | 1,253,869 | 31.3 | ||||||||||||||||||
| Total Revenues | 2,263,117 | 1,622,570 | (28.3 | ) | 8,527,101 | 5,367,466 | (37.1 | ) | ||||||||||||||||
| Operating Costs | ||||||||||||||||||||||||
| Cost of Services | 237,965 | 170,524 | (28.3 | ) | 954,207 | 765,958 | (19.7 | ) | ||||||||||||||||
| Administrative Expenses | 145,726 | 129,050 | (11.4 | ) | 542,664 | 518,058 | (4.5 | ) | ||||||||||||||||
| Major Maintenance Provision | 133,812 | 208,316 | 55.7 | 292,324 | 392,531 | 34.3 | ||||||||||||||||||
| Construction Costs | 347,839 | 396,331 | 13.9 | 954,834 | 1,253,869 | 31.3 | ||||||||||||||||||
| Concession Taxes | 93,164 | 55,496 | (40.4 | ) | 363,561 | 199,202 | (45.2 | ) | ||||||||||||||||
| Technical Assistance Fee | 36,076 | 18,198 | (49.6 | ) | 150,108 | 81,164 | (45.9 | ) | ||||||||||||||||
| Depreciation and Amortization | 104,019 | 112,476 | 8.1 | 415,252 | 435,344 | 4.8 | ||||||||||||||||||
| Other expenses (Revenues) - Net | (103 | ) | (7 | ) | (93.2 | ) | (1,155 | ) | (128 | ) | (88.9 | ) | ||||||||||||
| Total Operating Costs and Expenses | 1,098,498 | 1,090,384 | (0.7 | ) | 3,671,795 | 3,645,998 | (0.7 | ) | ||||||||||||||||
| Operating Income | 1,164,619 | 532,186 | (54.3 | ) | 4,855,306 | 1,721,468 | (64.5 | ) | ||||||||||||||||
| Operating Margin (%) | 51.5 | % | 32.8 | % | 56.9 | % | 32.1 | % | ||||||||||||||||
| Financing (Expense) Income: | ||||||||||||||||||||||||
| Interest Income | 41,468 | 18,177 | (56.2 | ) | 171,236 | 111,889 | (34.7 | ) | ||||||||||||||||
| Interest (Expense) | (95,721 | ) | (104,730 | ) | 9.4 | (376,008 | ) | (420,499 | ) | 11.8 | ||||||||||||||
| Exchange Gain (Loss) - Net | (63,546 | ) | (182,996 | ) | 188.0 | (50,878 | ) | 79,522 | n.a. | |||||||||||||||
| Total Financing (Expense) Income | (117,799 | ) | (269,549 | ) | 128.8 | (255,650 | ) | (229,088 | ) | (10.4 | ) | |||||||||||||
| Income before Taxes | 1,046,820 | 262,637 | (74.9 | ) | 4,599,656 | 1,492,380 | (67.6 | ) | ||||||||||||||||
| Taxes - Cash | 290,199 | 71,913 | (75.2 | ) | 1,329,867 | 480,232 | (63.9 | ) | ||||||||||||||||
| Taxes - Deferred | (4,405 | ) | (48,567 | ) | 1,002.5 | 42,355 | (85,731 | ) | n.a. | |||||||||||||||
| Income Tax | 285,794 | 23,346- | (91.8 | ) | 1,372,222- | 394,501- | (71.3 | ) | ||||||||||||||||
| Consolidated Net Income | 761,026 | 239,291 | (68.6 | ) | 3,227,434 | 1,097,879 | (66.0 | ) | ||||||||||||||||
| Other Comprehensive Income: | ||||||||||||||||||||||||
| Actuarial Gains (Losses) | (12,834 | ) | (13,038 | ) | 2 | (12,834 | ) | (13,038 | ) | 2 | ||||||||||||||
| Deferred Tax Effect | 3,850 | 3,911 | 2 | 3,850 | 3,911 | 2 | ||||||||||||||||||
| Consolidated Comprehensive Income | 752,042 | 230,164 | (69.4 | ) | 3,218,450 | 1,088,752 | (66.2 | ) | ||||||||||||||||
| Consolidated Net Income attributable to: | ||||||||||||||||||||||||
| Non-Controlling Interest | 2,974 | 235 | (92.1 | ) | 7,636 | 3,521 | (53.9 | ) | ||||||||||||||||
| Controlling Interest | 758,052 | 239,056 | (68.5 | ) | 3,219,798 | 1,094,358 | (66.0 | ) | ||||||||||||||||
| Consolidated Comprehensive Income attributable to: | ||||||||||||||||||||||||
| Non-Controlling Interest | 2,974 | 235 | (92.1 | ) | 7,636 | 3,521 | (53.9 | ) | ||||||||||||||||
| Controlling Interest | 749,068 | 229,929 | (69.3 | ) | 3,210,814 | 1,085,231 | (66.2 | ) | ||||||||||||||||
| Weighted Average Shares Outstanding | 391,493,584 | 390,111,556 | 392,736,827 | 390,313,970 | ||||||||||||||||||||
| EPS (Ps.) | 1.94 | 0.61 | (68.4 | ) | 8.20 | 2.80 | (65.8 | ) | ||||||||||||||||
| EPADS (US$) | 0.82 | 0.25 | (70.0 | ) | 3.48 | 1.13 | (67.6 | ) | ||||||||||||||||
| EBITDA | 1,268,638 | 644,662 | (49.2 | ) | 5,270,558 | 2,156,812 | (59.1 | ) | ||||||||||||||||
| EBITDA Margin (%) | 56.1 | % | 39.7 | % | 61.8 | % | 40.2 | % | ||||||||||||||||
| Adjusted EBITDA | 1,402,450 | 852,978 | (39.2 | ) | 5,562,882 | 2,549,343 | (54.2 | ) | ||||||||||||||||
| Adjusted EBITDA Margin (%) | 73.2 | % | 69.6 | % | 73.5 | % | 62.0 | % |
13
| Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. |
| Unaudited Consolidated Cash Flow Statement |
| (Thousands of Pesos) |
| From October 1 to December 31, | From January 1 to December 31, | |||||||||||||||||||||||
| 2019 | 2020 | % Var. | 2019 | 2020 | % Var. | |||||||||||||||||||
| Operating Activities | ||||||||||||||||||||||||
| Income Before Taxes | 1,046,820 | 262,637 | (74.9 | ) | 4,599,656 | 1,492,380 | (67.6 | ) | ||||||||||||||||
| Depreciation and Amortization | 104,018 | 112,476 | 8.1 | 415,252 | 435,344 | 4.8 | ||||||||||||||||||
| Major Maintenance Provision | 133,812 | 208,316 | 55.7 | 292,324 | 392,531 | 34.3 | ||||||||||||||||||
| Doubtful Accounts Provision | 68 | 3,816 | 5,501.3 | (241 | ) | 17,738 | n.a. | |||||||||||||||||
| (Profit) / Loss on Sales of Machinery and Equipment - Net | (102 | ) | (5,260 | ) | 5,039.4 | (1,162 | ) | (5,380 | ) | 362.9 | ||||||||||||||
| Interest Income | (41,468 | ) | (18,177 | ) | (56.2 | ) | (171,236 | ) | (111,889 | ) | (34.7 | ) | ||||||||||||
| Items in Results Related to Financing Activities | ||||||||||||||||||||||||
| Present Value of Major Maintenance Provision | 7,053 | 18,029 | 155.6 | 23,157 | 75,262 | 225.0 | ||||||||||||||||||
| Interest Expense | 88,668 | 86,701 | (2.2 | ) | 352,851 | 345,237 | (2.2 | ) | ||||||||||||||||
| Non-Paid Exchange Fluctuation | 58,054 | 190,729 | 228.5 | 44,007 | (72,253 | ) | n.a. | |||||||||||||||||
| 1,396,922 | 859,267 | (38.5 | ) | 5,554,607 | 2,568,970 | (53.8 | ) | |||||||||||||||||
| Changes in: | ||||||||||||||||||||||||
| Trade Accounts Receivable - Net | (1,783 | ) | 92,027 | n.a. | (60,949 | ) | (37,934 | ) | (37.8 | ) | ||||||||||||||
| Recoverable Taxes | (81,743 | ) | (92,211 | ) | 12.8 | (183,103 | ) | (246,597 | ) | 34.7 | ||||||||||||||
| Other Accounts Receivable | 19,456 | 5,709 | (70.7 | ) | (25,156 | ) | (16,576 | ) | (34.1 | ) | ||||||||||||||
| Accounts Payable | 25,671 | 11,995 | (53.3 | ) | (26,880 | ) | (48,307 | ) | 79.7 | |||||||||||||||
| Taxes and Accrued Expenses | (33,560 | ) | (93,442 | ) | 178.4 | 41,367 | 48,472 | 17.2 | ||||||||||||||||
| Taxes Paid | (320,416 | ) | (108,960 | ) | (66.0 | ) | (1,324,834 | ) | (747,867 | ) | (43.6 | ) | ||||||||||||
| Accounts Payable to Related Parties | (6,124 | ) | (150,178 | ) | 2,352.3 | (42,276 | ) | (72,554 | ) | 71.6 | ||||||||||||||
| Major Maintenance Payments | (118,446 | ) | (45,788 | ) | (61.3 | ) | (305,133 | ) | (103,704 | ) | (66.0 | ) | ||||||||||||
| Other Long-Term Liabilities | 73,798 | 123,393 | 67.2 | 88,880 | (40,425 | ) | n.a. | |||||||||||||||||
| Net Flow from Operating Activities | 953,776 | 601,813 | (36.9 | ) | 3,716,523 | 1,303,477 | (64.9 | ) | ||||||||||||||||
| Investment Activities | ||||||||||||||||||||||||
| Acquisition of Property, Plant and Equipment | (22,175 | ) | (14,262 | ) | (35.7 | ) | (57,103 | ) | (157,992 | ) | 176.7 | |||||||||||||
| Investment in Airport Concessions | (462,417 | ) | (375,430 | ) | (18.8 | ) | (1,086,426 | ) | (1,283,642 | ) | 18.2 | |||||||||||||
| Other Long-Term Assets | — | (65 | ) | n.a. | (753 | ) | (65 | ) | (91.4 | ) | ||||||||||||||
| Proceeds from Sale of Land, Machinery and Equipment | 102 | 5,260 | 5,039.4 | 1,162 | 5,380 | 362.9 | ||||||||||||||||||
| Interest income | 41,468 | 18,177 | (56.2 | ) | 171,236 | 111,889 | (34.7 | ) | ||||||||||||||||
| Other Investments Held to Maturity | — | — | n.a. | 19,657 | — | (100 | ) | |||||||||||||||||
| Net Flow from Investing Activities | (443,022 | ) | (366,320 | ) | (17.3 | ) | (952,227 | ) | (1,324,430 | ) | 39.1 | |||||||||||||
| Cash Flow before Financing Activities | 510,754 | 235,493 | (53.9 | ) | 2,764,296 | (20,953 | ) | n.a. | ||||||||||||||||
| Financing Activities | ||||||||||||||||||||||||
| Repurchase of Shares | (33,982 | ) | — | (100.0 | ) | (244,201 | ) | (150,000 | ) | (38.6 | ) | |||||||||||||
| Loans - Disbursed | — | — | n.a. | 14,700 | 41,895 | 185.0 | ||||||||||||||||||
| Loans - Paid | (9,367 | ) | (9,750 | ) | 4.1 | (40,790 | ) | (42,592 | ) | 4.4 | ||||||||||||||
| Interest Expense | (82,168 | ) | (79,812 | ) | (2.9 | ) | (327,309 | ) | (320,866 | ) | (2.0 | ) | ||||||||||||
| Payment of loans related to financial leases | (15,600 | ) | (14,025 | ) | (10.1 | ) | (50,180 | ) | (57,325 | ) | 14.2 | |||||||||||||
| Net Cash Flow from Financing Activities | (141,118 | ) | (103,588 | ) | (27 | ) | (2,246,461 | ) | (528,888 | ) | (76 | ) | ||||||||||||
| Net Increase (Reduction) in Cash and Cash Equivalents | 369,636 | 131,905 | (64 | ) | 517,835 | (549,840 | ) | n.a. | ||||||||||||||||
| Effect of change for fair value of cash and equivalents | (60,584 | ) | (194,857 | ) | n.a. | (46,865 | ) | 78,771 | n.a. | |||||||||||||||
| Cash and Equivalents at Beginning of Period | 3,120,821 | 3,021,756 | (3.2 | ) | 2,958,902 | 3,429,873 | 15.9 | |||||||||||||||||
| Cash and Equivalents at End of Period | 3,429,873 | 2,958,804 | (13.7 | ) | 3,429,873 | 2,958,804 | (13.7 | ) | ||||||||||||||||
14
| Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. |
| Unaudited Statement of Changes in Stockholders’ Equity |
| As of December 31, 2019 (Thousand Pesos) |
| Number of Shares | Capital stock Nominal | Additional Paid-In Capital | �� | Retained Earnings | Share Repurchase Reserve | Labor Obligations | Non- Controlling Interest | Total Stockholder’s 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 | ||||||||||||||||||||||||
| Reissuance (Repurchase) of Shares - Net | (2,145,651 | ) | (1,655 | ) | — | — | (242,546 | ) | — | — | (244,201 | ) | ||||||||||||||||||||
| Dividends Paid | — | — | — | (1,598,681 | ) | — | — | — | (1,598,681 | ) | ||||||||||||||||||||||
| Increase in the Share Purchase Reserve | — | — | — | (33,984 | ) | 33,984 | — | — | — | |||||||||||||||||||||||
| Comprehensive Income (Loss) | — | — | — | 3,219,798 | — | (8,984 | ) | 7,636 | 3,218,450 | |||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||
| Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. |
| Unaudited Statement of Changes in Stockholders’ Equity |
| As of December 31, 2020 (Thousand Pesos) |
| Number of Shares | Capital stock Nominal | Additional Paid-in Capital | Retained Earnings | Share Repurchase Reserve | Labor Obligations | Non- Controlling Interest | Total Stockholder’s 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 | ) | ||||||||||||||||||||
| Increase in the Share Repurchase Reserve | — | — | — | (391,629 | ) | 391,629 | — | — | — | |||||||||||||||||||||||
| Comprehensive Income (Loss) | — | — | — | 1,094,358 | — | (9,127 | ) | 3,521 | 1,088,752 | |||||||||||||||||||||||
| Balance as of December 31, 2020 | 390,111,556 | 300,822 | 29,786 | 8,824,666 | 1,500,000 | (4,933 | ) | 175,906 | 10,826,247 | |||||||||||||||||||||||
15
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. Unaudited Operating Results by Airport |
(Thousands of Pesos)
| Monterrey | 4Q19 | 4Q20 | 2019 | 2020 | ||||||
| Total Revenues | 1,016,490 | 796,134 | 3,690,771 | 2,560,048 | ||||||
| Aeronautical Revenues | 667,082 | 419,142 | 2,641,052 | 1,278,257 | ||||||
| Non- Aeronatical Revenues | 189,091 | 109,762 | 726,684 | 479,320 | ||||||
| Construction Revenues | 160,317 | 267,231 | 323,035 | 802,470 | ||||||
| Income from Operations | 117,892 | 28,471 | 473,615 | 445,952 | ||||||
| EBITDA | 144,027 | 59,859 | 584,635 | 568,460 | ||||||
| Chihuahua | ||||||||||
| Total Revenues | 145,608 | 88,566 | 603,114 | 292,457 | ||||||
| Aeronautical Revenues | 100,713 | 65,504 | 411,393 | 215,728 | ||||||
| Non- Aeronatical Revenues | 17,531 | 12,706 | 67,021 | 46,049 | ||||||
| Construction Revenues | 27,364 | 10,356 | 124,701 | 30,679 | ||||||
| Income from Operations | 16,368 | (7,619 | ) | 67,379 | 50,038 | |||||
| EBITDA | 21,913 | (1,171 | ) | 85,353 | 75,312 | |||||
| Mazatlán | ||||||||||
| Total Revenues | 107,632 | 83,924 | 408,744 | 273,318 | ||||||
| Aeronautical Revenues | 89,272 | 69,402 | 321,313 | 211,184 | ||||||
| Non- Aeronatical Revenues | 14,520 | 10,295 | 52,857 | 37,431 | ||||||
| Construction Revenues | 3,840 | 4,227 | 34,573 | 24,704 | ||||||
| Income from Operations | 14,332 | 32,685 | 52,627 | 63,103 | ||||||
| EBITDA | 18,860 | 37,419 | 70,141 | 81,803 | ||||||
| Zihuatanejo | ||||||||||
| Total Revenues | 61,732 | 40,717 | 239,984 | 162,989 | ||||||
| Aeronautical Revenues | 45,391 | 22,071 | 191,511 | 98,645 | ||||||
| Non- Aeronatical Revenues | 6,307 | 4,956 | 25,596 | 18,360 | ||||||
| Construction Revenues | 10,034 | 13,691 | 22,876 | 45,984 | ||||||
| Income from Operations | 12,683 | 9,122 | 43,613 | 12,961 | ||||||
| EBITDA | 17,383 | 13,949 | 62,273 | 32,052 | ||||||
| Consorcio Grupo Hotelero T2 (1) | ||||||||||
| Revenues | 67,317 | 25,439 | 255,613 | 110,525 | ||||||
| Income from Operations | 20,742 | (4,007 | ) | 77,325 | (8,609 | ) | ||||
| EBITDA | 30,246 | 6,998 | 116,870 | 31,693 | ||||||
| OMA VYNMSA Aero Industrial Park | ||||||||||
| Revenues | 11,647 | 16,775 | 41,981 | 56,454 | ||||||
| Income from Operations | 4,415 | 7,323 | 15,622 | 24,082 | ||||||
| EBITDA | 9,757 | 14,496 | 35,170 | 47,702 |
| Culiacán | 4Q19 | 4Q20 | 2019 | 2020 | ||||||
| Total Revenues | 174,595 | 146,603 | 753,225 | 479,436 | ||||||
| Aeronautical Revenues | 155,581 | 112,096 | 617,978 | 359,562 | ||||||
| Non- Aeronatical Revenues | 17,566 | 15,921 | 66,286 | 51,732 | ||||||
| Construction Revenues | 1,448 | 18,586 | 68,960 | 68,142 | ||||||
| Income from Operations | 23,887 | (15,286 | ) | 96,278 | 92,341 | |||||
| EBITDA | 28,619 | (10,033 | ) | 114,936 | 113,229 | |||||
| Ciudad Juárez | ||||||||||
| Total Revenues | 117,851 | 81,845 | 453,919 | 265,370 | ||||||
| Aeronautical Revenues | 95,800 | 61,906 | 380,271 | 199,685 | ||||||
| Non- Aeronatical Revenues | 14,239 | 10,400 | 55,998 | 37,736 | ||||||
| Construction Revenues | 7,812 | 9,540 | 17,650 | 27,949 | ||||||
| Income from Operations | 15,171 | 21,927 | 61,376 | 60,241 | ||||||
| EBITDA | 18,136 | 25,279 | 73,174 | 72,958 | ||||||
| Acapulco | ||||||||||
| Total Revenues | 71,979 | 40,021 | 331,298 | 173,787 | ||||||
| Aeronautical Revenues | 53,519 | 27,694 | 227,954 | 117,218 | ||||||
| Non- Aeronatical Revenues | 9,723 | 5,534 | 40,242 | 27,159 | ||||||
| Construction Revenues | 8,737 | 6,793 | 63,102 | 29,409 | ||||||
| Income from Operations | 15,326 | 21,228 | 53,812 | 21,587 | ||||||
| EBITDA | 26,368 | 32,524 | 97,098 | 66,368 | ||||||
| Other six airports | ||||||||||
| Total Revenues | 411,920 | 249,702 | 1,457,538 | 833,528 | ||||||
| Aeronautical Revenues | 239,220 | 150,655 | 978,091 | 486,084 | ||||||
| Non- Aeronatical Revenues | 35,293 | 26,843 | 132,988 | 96,443 | ||||||
| Construction Revenues | 137,408 | 72,205 | 346,459 | 251,001 | ||||||
| Income from Operations | 43,700 | 64,765 | 171,932 | 112,894 | ||||||
| EBITDA | 58,328 | 83,023 | 227,428 | 180,824 | ||||||
| Consorcio Hotelero Aeropuerto Monterrey (1) | ||||||||||
| Revenues | 23,701 | 7,041 | 103,285 | 32,949 | ||||||
| Income from Operations | 6,414 | (3,222 | ) | 32,345 | (6,918 | ) | ||||
| EBITDA | 9,214 | (313 | ) | 43,726 | 4,511 | |||||
(1) Includes results of other equity-method subsidiaries
16
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.” For more information, please refer to our Quarterly Financial Information submitted to the Mexican Stock Exchange (www.bmv.com.mx)
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.18.8727 as of December 31, 2019 and Ps. 19.9352 as of December 31, 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.
17
Analyst Coverage
In accordance with the requirements of the Mexican Stock Exchange, the analysts covering OMA are:
| Company | Name | Company | Name |
| 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 | Montserrat Araujo | 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 | Alejandro Zamacona | 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 | Giovanni Bisogno Guinea |
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 and security measures. OMA is listed on the Mexican Stock Exchange (OMA) and on the NASDAQ Global Select Market (OMAB). For more information, visit:
| ● | Webpage http://ir.oma.aero |
| ● | Twitter http://twitter.com/OMAeropuertos |
| ● | Facebook https://www.facebook.com/OMAeropuertos |
| 18 |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. |
| By: | /s/ Ruffo Pérez Pliego | |
| Ruffo Pérez Pliego | ||
| Chief Financial Officer | ||
Dated February 15, 2021