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 2022
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 ☒ 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 ☒ |
(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 2021
Operating and Financial Results
Mexico City, Mexico, February 22, 2022— 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 2021 (4Q21).
Full year 2021 Summary
| § | Ps.2,117 million in capital investments and major maintenance included in the Master Development Plans (MDPs) plus strategic investments in 2021. |
| § | Passenger traffic increased 62.9%, compared to 2020, reaching 18.0 million passengers in 2021. |
| § | In 2021, Adjusted EBITDA was Ps.5,110 million with a record-high Adjusted EBITDA margin of 73.7%. |
4Q21 Summary
| § | Passenger traffic increased 62.1% during 4Q21, as compared to 4Q20, reaching 5.4 million passengers, and decreased 10.0% as compared to 4Q19. The airports with the highest traffic recovery in percentage terms compared to 4Q19 were Ciudad Juárez, Mazatlán and Reynosa. |
| § | Adjusted EBITDA was Ps.1,521 million, which compares to Ps.853 million in 4Q20, and was 8.5% higher than in 4Q19. |
| § | Adjusted EBITDA margin reached 74.9%, as compared to 69.6% in 4Q20 and 73.2% in 4Q19. |
| § | Capital investments and major maintenance works included in the Master Development Plans (MDPs) plus strategic investments were Ps.752 million in the quarter. |
OMA will hold its 4Q21 earnings conference call on February 23, 2022 at 11:00 a.m. Eastern time, 10:00 a.m. Mexico City time.
Call +1-877-407-9208 toll-free from the U.S. or +1-201-493-6784 from outside the U.S. The conference ID is 13726636. The conference call will also be available by webcast at http://ir.oma.aero/en/calendario-de-eventos.
4Q21 Operating Results
Operations, Passengers, and Cargo
The number of seats offered increased 39.0% compared to 4Q20 and decreased 11.6%, compared to 4Q19, mainly due to the number of routes suspended by the airlines.
During the quarter, 7 new routes, which did not exist before COVID-19 pandemic, started operations.
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Total passenger traffic reached 5.4 million passengers, representing an increase of 62.1% as compared to 4Q20 and decreased 10.0% versus 4Q19. During the quarter, of total traffic, 87.4% was domestic and 12.6% was international.
Domestic passenger traffic increased 55.8%, compared to 4Q20, while international traffic increased 126%. Compared to 4Q19, domestic passenger traffic and international passenger traffic decreased 10.8% and 3.9%, respectively.
The airports with the largest contribution to passenger traffic recovery, in percentage terms as compared to 4Q19, were:
| § | Ciudad Juárez (+10.8%), on its Mexico City, Cancún and Guadalajara routes. |
| § | Mazatlán (+6.0%), on its Tijuana and Chihuahua routes. |
| § | Reynosa (+2.3%), on its Cancún and Villahermosa routes. |
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Commercial Operations
The commercial space occupancy rate in the passenger terminals was 87.2% as of December 31, 2021.
Freight Logistics Services
| § | OMA Carga’s revenues increased by 19.5%, compared to 4Q20 due to higher handling, storage and custody activity related to ground import cargo. Total tonnage handled was 10,029 metric tons, 26.3% higher than 4Q20. |
Hotel Services
| § | The NH Collection Terminal 2 Hotel had a 78.3% occupancy rate, as compared to 41.6% in 4Q20, with a 21.2% increase in the average room rate to Ps.2,304 per night. |
| § | Hilton Garden Inn had a 60.1% occupancy rate, compared to 24.8% in 4Q20, with a 10.2% increase in the average room rate to Ps.2,020 per night. |
Industrial Services
| § | OMA VYNMSA Aero Industrial Park: Revenues reached Ps.17.6 million, an increase of 12.1% versus 4Q20. The increase is explained by a higher number of warehouses in operation as compared to 4Q20. |
Consolidated Financial Results
Revenues
Aeronautical revenues increased 68.9% mainly due to an increase in passenger traffic, compared to 4Q20.
Non-aeronautical revenues increased 55.9%.
Commercial revenues increased 57.0%. The line items with the largest variations were:
| § | Parking, +102% as a result of an increase in passenger traffic, as well as higher penetration in the Monterrey, Ciudad Juárez, Chihuahua and Reynosa airports. |
| § | Restaurants, Retail and Advertising, +52.4%, +64.5% and +92.8%, respectively, as a result of the supports granted to our tenants during 4Q20, as well as an increase in revenues from revenue share. |
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Diversification revenues increased 53.2%, mainly due to higher revenues from hotel services and OMA Carga.
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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Costs and Operating Expenses
The sum of cost of airport services and general and administrative expenses (G&A) increased 23.8%, mainly due to higher costs for payroll as a result of changes in labor regulation in Mexico, as well as higher costs of electricity, materials and others due to the increase in activity in OMA’s airports.
The major maintenance provision was Ps.118 million. The outstanding balance of the maintenance provision as of December 31, 2021 was Ps.1,742 million.
The airport concession tax was Ps.92 million and the technical assistance fee was Ps.41 million.
As a result of the foregoing, total operating costs and expenses increased 28.8%.
Operating Income and Adjusted EBITDA
Operating Income was Ps.1,275 million, with an operating margin of 47.6%.
Adjusted EBITDA was Ps.1,521 million, with a margin of 74.9%.
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Financing Income, Taxes, and Net Income
Financing Expense was Ps.30 million, a decrease of 89.0%, mainly due to an exchange gain, as compared to an exchange loss during the 4Q20.
Consolidated net income in the quarter was Ps.1,016 million, an increase of Ps.776 million.
Earnings per share, based on net income of the controlling interest, was Ps.2.62 and earnings per ADS was US$1.03. Each ADS represents eight Series B shares.
MDP and Strategic Investments
In 4Q21, capital investments and major maintenance works in the MDPs and strategic investments totaled Ps.752 million, comprised of Ps.648 million in improvements to concessioned assets, Ps.71 million in major maintenance, Ps.30 million in strategic investments, and Ps.3 million in other concepts.
The most important investment expenditures included:
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Indebtedness
Derivatives
As of the date of this report, OMA has no financial derivatives exposure.
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Cash Flow Statement
During 4Q21, cash flows from operating activities generated cash of Ps.1,214 million. This increase was mainly due to a higher income from operations.
Investing activities used cash of Ps.558 million in the fourth quarter. Financing activities reflect a dividend payment of Ps.1,980 million, as well as the flows received from short-term loan agreements, resulting in a cash increase of Ps.613 million.
The net increase in cash resulting from operating, investing and financing activities in 4Q21 was Ps.1,269 million. This, combined with the effects of changes in the value of cash, which resulted in a cash increase of Ps.34 million, the Cash and Cash Equivalents balance at December 31, 2021 was Ps.5,987 million.
COVID-19 Update
During the fourth quarter of 2021, passenger traffic held a positive recovery trend as compared to 4Q19, due to a higher mobility level in the country, in line with the epidemiological risk traffic light system in place during the quarter. During October, November and December, total passenger traffic decreased 12.9%, 9.5% and 7.5% compared to the same periods in 2019.
As of December 31, 2021, OMA had 153 origin-destination routes in operation, compared to 140 origin-destination routes as of December 31, 2020, and 183 as of December 31, 2019.
Also, due to the uncertainty caused by Omicron variant and the rise in positive cases at the beginning of 2022, passenger traffic recovery levels decelerated. The Company expects passenger traffic to rebound its recovery during the following months, as contagion levels decrease and the epidemiological risk traffic light system where OMA operates allows higher mobility levels and economic activity. As of the date of this report, 5 states in which OMA operates are in yellow, while 4 states are in green.
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Subsequent Events
OMA’s Shareholders’ Meeting. On December 22, 2021, at the General Ordinary and Extraordinary Shareholders’ Meeting, shareholders approved, among other matters, the payment of a cash dividend of up to Ps.4,370 million. This special dividend was paid on January 19, 2022.
OMA’s inclusion in 2022 Bloomberg Gender-Equality Index. On January 26, 2022, OMA was recognized as one of the only ten Mexican companies to be included in the 2022 Bloomberg Gender-Equality Index, which distinguishes companies that excel at promoting equality, female talent development and diversity.
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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 of 2020. The exchange rates used to convert foreign currency amounts were Ps.18.8727 as of December 31, 2019, Ps. 19.9352 as of December 31, 2020, and Ps.20.4672 as of December 31, 2021.
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:
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 1,100 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 |
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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 22, 2022