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 April 2019
Commission File Number: 001-32751
GRUPO AEROPORTUARIO DEL PACÍFICO S.A.B. DE C.V. (PACIFIC AIRPORT GROUP) |
(Translation of Registrant’s Name Into English) |
México |
(Jurisdiction of incorporation or organization) |
Avenida Mariano Otero No. 1249-B Torre Pacifico, Piso 6 Col. Rinconada del Bosque 44530 Guadalajara, Jalisco, 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 if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
GRUPO AEROPORTUARIO DEL PACIFICO
ANNOUNCES RESULTS FOR THE SECOND QUARTER OF 2019
Guadalajara, Jalisco, Mexico, July 25, 2019 – Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (NYSE: PAC; BMV: GAP) (“the Company” or “GAP”) reported its consolidated results for the second quarter ended June 30, 2019. Figures areunaudited and have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).
Summary of Results 2Q19 vs. 2Q18
● | The sum ofaeronautical and non-aeronautical services revenues increased by Ps. 411.4 million, or 13.2%. Total revenues increased by Ps. 214.6 million, or 6.2%. |
● | Cost of services increased by Ps. 98.9 million, or 16.3%. |
● | Operating income increased by Ps. 244.0 million, or 13.9%. |
● | EBITDA increased by Ps. 282.9 million, or 13.2%. EBITDA margin (excluding the effects of IFRIC 12) increased from 68.7% in 2Q18 to 68.8% in 2Q19. |
● | Net income and comprehensive income decreased by Ps. 332.7 million, or 21.5%, mostly due to the currency translation effect. |
Operating Results
During 2Q19, total terminal passengers at the Company’s 13 airports increased by 1,085.4 thousand passengers, or 9.8%, compared to 2Q18. Over the same period, domestic passenger traffic increased by 654.1 thousand passengers, while international passenger traffic increased by 431.3 thousand passengers.
In the traffic tables below, we have reflected the users of the Cross Border Xpress (CBX) under the international passenger numbers for the Tijuana airport.
During 2Q19, the following routes opened:
Domestic Routes:
Airline | Departure | Arrival | Opening date | Frequencies |
Viva Aerobus | Los Mochis | Monterrey | April 2, 2019 | 2 weekly frequencies |
TAR | Los Mochis | Guadalajara | April 3, 2019 | 3 weekly frequencies |
Volaris | Guadalajara | Durango | June 17, 2019 | 3 weekly frequencies |
Viva Aerobus | Hermosillo | Cancún | June 1, 2019 | 2 weekly frequencies |
Viva Aerobus | Los Cabos | Tijuana | June 7, 2019 | 2 weekly frequencies |
Viva Aerobus | Tijuana | Cancún | June 8, 2019 | 2 weekly frequencies |
Viva Aerobus | Tijuana | Mazatlán | June 8, 2019 | 2 weekly frequencies |
Viva Aerobus | Hermosillo | Los Cabos | June 10, 2019 | 2 weekly frequencies |
Aeromar | Puerto Vallarta | Ciudad de México | June 13, 2019 | 4 weekly frequencies |
Volaris | Guadalajara | Queretaro | June 16, 2019 | 3 weekly frequencies |
Volaris | Puerto Vallarta | Queretaro | June 16, 2019 | 2 weekly frequencies |
Note: The frequency of flights on these routes is subject to change without prior notice.
International Routes:
Airline | Departure | Arrival | Opening date | Frequencies |
Volaris | Puerto Vallarta | Chicago O´Hare | May 5, 2019 | 1 weekly frequency |
Thomas Cook | Montego Bay | Manchester | May 20, 2019 | 1 weekly frequency |
Sun Country | Montego Bay | Dallas-Fort Worth | May 24, 2019 | 2 weekly frequencies |
Sun Country | Los Cabos | Las Vegas | June 6, 2019 | 2 weekly frequencies |
Sun Country | Puerto Vallarta | Las Vegas | June 7, 2019 | 2 weekly frequencies |
Volaris | Aguascalientes | Chicago Midway | June 16, 2019 | 2 weekly frequencies |
Volaris | Puerto Vallarta | Phoenix | June 16, 2019 | 2 weekly frequencies |
Note: The frequency of flights on these routes is subject to change without prior notice.
Domestic Terminal Passengers(in thousands):
Airport | 2Q18 | 2Q19 | Change | 6M18 | 6M19 | Change |
Guadalajara | 2,578.0 | 2,674.0 | 3.7% | 4,945.6 | 5,094.4 | 3.0% |
Tijuana1 | 1,388.0 | 1,533.7 | 10.5% | 2,702.4 | 2,894.9 | 7.1% |
Los Cabos | 412.5 | 490.9 | 19.0% | 797.9 | 885.5 | 11.0% |
Puerto Vallarta | 408.7 | 479.5 | 17.3% | 747.1 | 831.3 | 11.3% |
Montego Bay | 2.2 | 2.4 | 8.2% | 4.1 | 4.2 | 2.2% |
Guanajuato | 408.3 | 532.3 | 30.4% | 757.5 | 994.3 | 31.3% |
Hermosillo | 431.8 | 475.0 | 10.0% | 833.0 | 859.9 | 3.2% |
Mexicali | 275.2 | 303.4 | 10.2% | 539.8 | 569.4 | 5.5% |
La Paz | 223.9 | 256.3 | 14.5% | 434.0 | 466.4 | 7.4% |
Morelia | 85.4 | 115.7 | 35.4% | 173.8 | 225.9 | 29.9% |
Aguascalientes | 179.9 | 162.3 | (9.8%) | 332.7 | 305.2 | (8.3%) |
Los Mochis | 83.2 | 103.3 | 24.3% | 166.0 | 187.1 | 12.7% |
Manzanillo | 22.9 | 25.4 | 10.8% | 46.0 | 49.2 | 7.0% |
Total | 6,500.0 | 7,154.1 | 10.1% | 12,479.9 | 13,367.7 | 7.1% |
1CBX users are classified as international passengers
International Terminal Passengers(in thousands):
Airport | 2Q18 | 2Q19 | Change | 6M18 | 6M19 | Change |
Guadalajara | 998.7 | 1,088.6 | 9.0% | 1,981.1 | 2,076.7 | 4.8% |
Tijuana1 | 537.0 | 736.1 | 37.1% | 1,066.4 | 1,394.2 | 30.7% |
Los Cabos | 929.5 | 963.1 | 3.6% | 1,945.1 | 2,019.3 | 3.8% |
Puerto Vallarta | 698.5 | 713.7 | 2.2% | 1,917.1 | 1,970.6 | 2.8% |
Montego Bay | 1,121.2 | 1,179.9 | 5.2% | 2,315.3 | 2,516.2 | 8.7% |
Guanajuato | 163.8 | 173.8 | 6.1% | 344.4 | 345.1 | 0.2% |
Hermosillo | 17.1 | 17.4 | 1.5% | 35.4 | 34.5 | (2.6%) |
Mexicali | 1.5 | 1.9 | 24.4% | 2.8 | 3.3 | 17.2% |
La Paz | 3.0 | 3.1 | 2.9% | 5.8 | 6.6 | 13.6% |
Morelia | 89.9 | 105.8 | 17.7% | 180.4 | 207.1 | 14.8% |
Aguascalientes | 50.0 | 54.8 | 9.6% | 92.2 | 99.3 | 7.7% |
Los Mochis | 1.5 | 1.9 | 23.7% | 3.1 | 3.5 | 11.9% |
Manzanillo | 12.3 | 15.2 | 23.8% | 53.4 | 52.3 | (2.0%) |
Total | 4,623.9 | 5,055.2 | 9.3% | 9,942.6 | 10,728.8 | 7.9% |
1CBX users are classified as international passengers
Total Terminal Passengers(in thousands):
Airport | 2Q18 | 2Q19 | Change | 6M18 | 6M19 | Change |
Guadalajara | 2,578.0 | 2,674.0 | 3.7% | 4,945.6 | 5,094.4 | 3.0% |
Tijuana1 | 1,388.0 | 1,533.7 | 10.5% | 2,702.4 | 2,894.9 | 7.1% |
Los Cabos | 412.5 | 490.9 | 19.0% | 797.9 | 885.5 | 11.0% |
Puerto Vallarta | 408.7 | 479.5 | 17.3% | 747.1 | 831.3 | 11.3% |
Montego Bay | 2.2 | 2.4 | 8.2% | 4.1 | 4.2 | 2.2% |
Guanajuato | 408.3 | 532.3 | 30.4% | 757.5 | 994.3 | 31.3% |
Hermosillo | 431.8 | 475.0 | 10.0% | 833.0 | 859.9 | 3.2% |
Mexicali | 275.2 | 303.4 | 10.2% | 539.8 | 569.4 | 5.5% |
La Paz | 223.9 | 256.3 | 14.5% | 434.0 | 466.4 | 7.4% |
Morelia | 85.4 | 115.7 | 35.4% | 173.8 | 225.9 | 29.9% |
Aguascalientes | 179.9 | 162.3 | (9.8%) | 332.7 | 305.2 | (8.3%) |
Los Mochis | 83.2 | 103.3 | 24.3% | 166.0 | 187.1 | 12.7% |
Manzanillo | 22.9 | 25.4 | 10.8% | 46.0 | 49.2 | 7.0% |
Total | 6,500.0 | 7,154.1 | 10.1% | 12,479.9 | 13,367.7 | 7.1% |
1 CBX users are classified as international passengers
CBX Users(in thousands):
Airport | 2Q18 | 2Q19 | Change | 6M18 | 6M19 | Change |
Tijuana | 516.5 | 723.6 | 40.1% | 1,026.4 | 1,370.9 | 33.6% |
Consolidated Results for the Second Quarter of 2019(in thousands of pesos):
2Q18 | 2Q19 | Change | |
Revenues | |||
Aeronautical services | 2,331,424 | 2,577,773 | 10.6% |
Non-aeronautical services | 792,219 | 957,275 | 20.8% |
Improvements to concession assets (IFRIC 12) | 319,150 | 122,363 | (61.7%) |
Total revenues | 3,442,794 | 3,657,411 | 6.2% |
Operating costs | |||
Costs of services: | 606,387 | 705,304 | 16.3% |
Employee costs | 223,320 | 228,793 | 2.5% |
Maintenance | 107,537 | 148,362 | 38.0% |
Safety, security & insurance | 93,263 | 102,312 | 9.7% |
Utilities | 77,829 | 92,489 | 18.8% |
Other operating expenses | 104,438 | 133,348 | 27.7% |
Technical assistance fees | 99,841 | 113,644 | 13.8% |
Concession taxes | 275,287 | 292,887 | 6.4% |
Depreciation and amortization | 386,999 | 425,839 | 10.0% |
Cost of improvements to concession assets (IFRIC 12) | 319,150 | 122,363 | (61.7%) |
Other income | (3,245) | (5,025) | 54.9% |
Total operating costs | 1,684,419 | 1,655,012 | (1.7%) |
Income from operations | 1,758,375 | 2,002,399 | 13.9% |
Financial Result | (31,188) | (235,742) | 655.9% |
Share of loss of associates | (995) | (3) | 99.7% |
Income before income taxes | 1,726,192 | 1,766,654 | 2.3% |
Income taxes | (537,173) | (503,081) | (6.3%) |
Net income | 1,189,019 | 1,263,573 | 6.3% |
Currency translation effect | 361,175 | (45,788) | (112.7%) |
Remeasurements of employee benefit – net income tax | 121 | (146) | (220.4%) |
Comprehensive income | 1,550,315 | 1,217,639 | (21.5%) |
Non-controlling interest | (76,630) | (19,763) | 74.2% |
Comprehensive income attributable to controlling interest | 1,473,686 | 1,197,876 | (18.7%) |
2Q18 | 2Q19 | Change | |
EBITDA | 2,145,373 | 2,428,238 | 13.2% |
Comprehensive income | 1,550,315 | 1,217,639 | (21.5%) |
Comprehensive income per share (pesos) | 2.7635 | 2.1705 | (21.5%) |
Comprehensive income per ADS (US dollars) | 1.4386 | 1.1299 | (21.5%) |
Operating income margin | 51.1% | 54.7% | 7.2% |
Operating income margin (excluding IFRIC 12) | 56.3% | 56.6% | 0.6% |
EBITDA margin | 62.3% | 66.4% | 6.5% |
EBITDA margin (excluding IFRIC 12) | 68.7% | 68.8% | 0.1% |
Costs of services and improvements / total revenues | 26.9% | 22.6% | (15.8%) |
Cost of services / total revenues (excluding IFRIC 12) | 19.4% | 20.0% | 2.8% |
- Net income and comprehensive income per share were calculated based on 561,000,000 outstanding shares. U.S. dollar figures presented were converted from pesos to U.S. dollars at a rate of Ps. 19.2089 per U.S. dollar (the noon buying rate on June 28, 2019, as published by the U.S. Federal Reserve Board).
- For purposes of the consolidation of the Montego Bay airport, the average monthly exchange rate of Ps. 19.1250 per U.S. dollar for the three months ended June 30, 2019 was used.
Revenues (2Q19 vs. 2Q18)
● | Aeronautical services revenues increased by Ps. 246.3 million, or 10.6% |
● | Non-aeronautical services revenues increased by Ps. 165.1 million, or 20.8% |
● | Revenues from improvements to concession assets decreased by Ps. 196.8 million, or 61.7% |
● | Total revenues increased by Ps. 214.6 million, or 6.2% |
- | Aeronautical services revenuesinclude: |
i. | Revenues from the Mexican airports increased by Ps. 229.2 million, or 11.6%, compared to 2Q18, generated mainly by a 10.3% increase in passenger traffic, as well as higher passenger fees after adjustments for inflation. |
ii. | Revenues from the Montego Bay airport increased by Ps. 17.1 million, or 4.7%, compared to 2Q18. This was mainly due to a 5.2% increase in passenger traffic and an increase in passenger fees due to inflation, and was offset by the 1.3% appreciation of the Mexican peso against the U.S. dollar, from an average exchange rate of Ps. 19.3715 in 2Q18 to an average exchange rate of Ps. 19.1250 in 2Q19. |
- | Non-aeronautical services revenuesinclude: |
i. | The Mexican airports contributed an increase of Ps. 156.6 million, or 23.9%, compared to 2Q18, mainly driven by an increase of Ps. 90.8 million in revenues from businesses operated by third parties. This was mainly due to the opening of commercial spaces for car rentals, food and beverage operations and retail stores at the Guadalajara, Puerto Vallarta and Tijuana airports, as well as increase in revenues from “Duty-free” stores, as a result of contract renegotiations. |
Revenues from businesses operated directly by the Company increased by Ps. 56.3 million, or 26.9%, mainly due to an increase in the number of visitors at the VIP lounges as a result of the opening of two new VIP lounges in the La Paz and Puerto Vallarta airports, the opening of seven new convenience stores in the Guanajuato, Mexicali, Puerto Vallarta and Tijuana airports during 2019, and an increase in car parking revenues.
ii. | Revenues from the Montego Bay airport in 2Q19 increased by Ps. 8.9 million, or 6.2%, mainly driven by a 7.5% increase in revenues from duty-free stores, retail stores, leasing of space, communications and financial services, and food and beverages. This increase was offset by the 1.3% appreciation of the peso against the U.S. dollar during the quarter, from an average exchange rate of Ps. 19.3715 in 2Q18 to an average exchange rate of Ps. 19.1250 in 2Q19. |
2Q18 | 2Q19 | Change | |
Businesses operated by third parties: | |||
Leasing of space | 54,810 | 61,672 | 12.5% |
Car rentals | 73,181 | 92,074 | 25.8% |
Food and beverage operations | 86,996 | 122,173 | 40.4% |
Retail operations | 87,841 | 94,941 | 8.1% |
Duty-free operations | 110,514 | 129,089 | 16.8% |
Time shares operations | 47,923 | 55,019 | 14.8% |
Ground transportation | 32,422 | 35,746 | 10.3% |
Communications and financial services | 21,989 | 22,153 | 0.7% |
Other commercial revenues | 14,409 | 16,688 | 15.8% |
Total | 530,085 | 629,555 | 18.8% |
Businesses operated directly by us: | |||
Car parking | 79,479 | 95,417 | 20.1% |
Advertising | 49,887 | 59,941 | 20.2% |
VIP lounges | 55,563 | 70,906 | 27.6% |
Convenience stores | 27,267 | 42,167 | 54.6% |
Total | 212,197 | 268,431 | 26.5% |
Recovery of costs | 49,938 | 59,289 | 18.7% |
Total Non-aeronautical Revenues | 792,219 | 957,275 | 20.8% |
Figures expressed in thousands of Mexican pesos.
- | Revenues from improvements to concession assets1 |
Revenues from improvements to concession assets (IFRIC 12) decreased by Ps. 196.8 million, or 61.7%, compared to 2Q18, mainly due to a decrease in committed investments under the Master Development Program for the Mexican airports for 2019, which resulted in a decrease of Ps. 128.4 million, or 54.9%, as well as to a decline in revenues from improvements to concession assets at the Montego Bay airport of Ps. 68.4 million, or 80.2%.
Total operating costs decreased by Ps. 29.4 million, or 1.7%, compared to 2Q18, mainly due to cost of services comprised of the following:
[1] Revenues from improvements to concession assets are recognized in accordance with International Financial Reporting Interpretation Committee 12 “Service Concession Arrangements” (IFRIC 12), but this recognition does not have a cash impact or an impact on the Company’s operating results. Amounts included as a result of the recognition of IFRIC 12 are related to construction of infrastructure in each quarter to which the Company has committed in accordance with the Company’s Master Development Programs in Mexico and Capital Development Program in Jamaica. All margins and ratios calculated using “Total Revenues” include revenues from improvements to concession assets (IFRIC 12), and, consequently, such margins and ratios may not be comparable to other ratios and margins, such as EBITDA margin, operating margin or other similar ratios that are calculated based on those results of the Company that do have a cash impact.
- | Operating costs at the Montego Bay airport decreased by Ps. 53.3 million, or 12.5%, compared to 2Q18 mainly due to a decrease in improvements to concession assets (IFRIC 12) of Ps. 68.4 million, which was offset by an increase in cost of services of Ps. 6.0 million, or 5.6%, and an increase in depreciation and amortization of Ps. 10.6 million or 11.9%, among others. |
- | Operating costs at the Mexican airports increased by Ps. 23.9 million, or 1.9%, compared to 2Q18, mainly due to an increase in cost of services for Ps. 92.9 million, or 18.6%, higher technical assistance fees and the cost of rights over the concession assets of Ps. 32.9 million, or 14.3%, and depreciation and amortization of Ps. 28.3 million, or 9.4%. This increase was offset by a decrease in the cost of improvements to the concession assets (IFRIC 12) for Ps. 128.4 million or 54.9%. |
The increase in cost of services was mainly due to:
● | An increase inmaintenance expenses of Ps. 40.3 million, or 46.2%, mainly aimed at the operational areas, terminal buildings, documented baggage and cleaning services, which jointly increased by Ps. 38.4 million, or 44.3%, due to the addition of square meters at the airports that recently completed their expansions, as well as for improvements in passenger service. |
● | An increase inother operating expenses of Ps. 30.1 million, or 33.4%, compared to 2Q18, mainly due to the increase in the reserve for doubtful accounts, cost of sales in the VIP lounges, convenience store fees and professional service fees, which jointly increased by Ps. 27.4 million, or 32.9%. |
● | An increase inutility costs of Ps. 15.2 million, or 28.5%, compared to 2Q18, due to higher energy prices and expansions of terminal buildings. |
Operating margin for 2Q19 increased by 360 basis points, from 51.1% in 2Q18 to 54.7% in 2Q19. Excluding the effects of IFRIC 12, operating margin increased by 30 basis points, from 56.3% in 2Q18 to 56.6% in 2Q19. Operating income increased by Ps. 244.0 million, or 13.9%, compared to 2Q18.
EBITDA marginincreased by 410 basis points from 62.3% in 2Q18 to 66.4% in 2Q19. Excluding the effects of IFRIC 12, EBITDA margin increased by 10 basis points from 68.7% in 2Q18 to 68.8% in 2Q19.The nominal value of EBITDA increased by Ps. 282.9 million, or 13.2%, compared to 2Q18.
Financial result increased byPs. 204.6 million,from a net expense of Ps. 31.2 million in 2Q18 to a net expense of Ps. 235.8 million in 2Q19. This increase was mainly the result of:
- | Foreign exchange rate loss of Ps. 11.1 million in 2Q19, compared to a gain of Ps. 39.9 million in 2Q18, mainly due to an 8.3% appreciation of the Mexican peso against the U.S. dollar in 2Q18, compared to a depreciation of 1.1% in 2Q19generating an increase in foreign exchange loss of Ps. 51.0 million. The currency translation effect represented a higher loss of Ps. 407.0 million, compared to 2Q18. |
- | An increase ininterest expenses of Ps. 178.1 million, or 94.1%, compared to 2Q18, mainly due to a higher debt derived from the issuance of long-term bond certificates |
(Certificados Bursatiles) for Ps. 3.0 billion, an increase in interest rates and a decline in the fair value of hedging instruments. |
- | An increase ininterest income of Ps. 24.6 million, or 28.1%,mainly due to the increase in the Company’s cash position, as well as to an increase in the interest rates. |
Comprehensive income declined by Ps. 332.7 million, or 21.5%, compared to 2Q18.
This decrease was mainly the result of a higher exchange rate loss resulting from the foreign exchange conversion effects of Ps. 407.0 million, or 112.7%.
Income before income taxes increased by Ps. 40.5 million, or 2.3% in 2Q19. During 2Q19, income taxes decreased by Ps. 34.1 million, or 6.3% compared to 2Q18. This was a result of the lower incurred tax of Ps. 52.7 million that was offset by the decline in the benefit from deferred income tax of Ps. 18.6 million, due to accumulated inflation that went from 0.12% in 2Q18 to 0.06% deflation in 2Q19.
Consolidated results for the first half of 2019(in thousands of pesos):
6M18 | 6M19 | Change | |
Revenues | |||
Aeronautical services | 4,691,925 | 5,209,098 | 11.0% |
Non-aeronautical services | 1,541,359 | 1,858,600 | 20.6% |
Improvements to concession assets (IFRIC 12) | 617,240 | 268,850 | (56.4%) |
Total revenues | 6,850,524 | 7,336,548 | 7.1% |
Operating costs | |||
Costs of services: | 1,124,011 | 1,300,943 | 15.7% |
Employee costs | 395,270 | 423,116 | 7.0% |
Maintenance | 216,326 | 260,802 | 20.6% |
Safety, security & insurance | 181,226 | 204,443 | 12.8% |
Utilities | 137,602 | 165,258 | 20.1% |
Other operating expenses | 193,587 | 247,324 | 27.8% |
Technical assistance fees | 202,588 | 229,218 | 13.1% |
Concession taxes | 536,402 | 618,154 | 15.2% |
Depreciation and amortization | 771,368 | 847,440 | 9.9% |
Cost of improvements to concession assets (IFRIC 12) | 617,240 | 268,850 | (56.4%) |
Other income | (4,843) | (8,933) | 84.4% |
Total operating costs | 3,246,765 | 3,255,672 | 0.3% |
Income from operations | 3,603,758 | 4,080,876 | 13.2% |
Financial Result | 18,375 | (318,347) | (1832.5%) |
Share of loss of associates | (759) | (7) | 99.1% |
Income before income taxes | 3,621,374 | 3,762,522 | 3.9% |
Income taxes | (1,002,876) | (1,101,400) | 9.8% |
Net income | 2,618,498 | 2,661,122 | 1.6% |
Currency translation effect | 28,810 | (139,739) | (585.0%) |
Remeasurements of employee benefit – net income tax | 650 | (293) | (145.1%) |
Comprehensive income | 2,647,959 | 2,521,090 | (4.8%) |
Non-controlling interest | (59,971) | (44,929) | 25.1% |
Comprehensive income attributable to controlling interest | 2,587,988 | 2,476,161 | (4.3%) |
6M18 | 6M19 | Change | |
EBITDA | 4,375,125 | 4,928,315 | 12.6% |
Comprehensive income | 2,647,959 | 2,521,090 | (4.8%) |
Comprehensive income per share (pesos) | 4.7201 | 4.4939 | (4.8%) |
Comprehensive income per ADS (US dollars) | 2.4572 | 2.3395 | (4.8%) |
Operating income margin | 52.6% | 55.6% | 5.7% |
Operating income margin (excluding IFRIC 12) | 57.8% | 57.7% | (0.1%) |
EBITDA margin | 63.9% | 67.2% | 5.2% |
EBITDA margin (excluding IFRIC 12) | 70.2% | 69.7% | (0.7%) |
Costs of services and improvements / total revenues | 25.4% | 21.4% | (15.8%) |
Cost of services / total revenues (excluding IFRIC 12) | 18.0% | 18.4% | 2.1% |
- Net income and comprehensive income per share were calculated based on 561,000,000 outstanding shares. U.S. dollar figures presented were converted from pesos to U.S. dollars at a rate of Ps. 19.2089 per U.S. dollar (the noon buying rate on June 28, 2019, as published by the U.S. Federal Reserve Board).
- For purposes of the consolidation of the Montego Bay airport, the average monthly exchange rate of Ps. 19.1724 per U.S. dollar for the three months ended June 30, 2019 was used.
Revenues (1H19 vs 1H18)
● | Aeronautical services revenues increased by Ps. 517.2 million, or 11.0%. |
● | Non-aeronautical services revenues increased by Ps. 317.2 million, or 20.6%. |
● | Revenues from improvements to concession assets declined by Ps. 348.4 million, or 56.4%. |
● | Total revenues increased by Ps. 486.0 million, or 7.1%. |
- | Aeronautical services revenuesinclude: |
i. | Revenues from the Mexican airports increased by Ps. 440.4 million, or 11.1%, compared to 1H18, generated primarily by the 7.3% passenger traffic increase, as well as higher passenger fees due to inflation. |
ii. | Revenues from the Montego Bay airport increased by Ps. 76.8 million, or 10.4%, compared to 1H18. This was primarily due to an 8.7% increase in passenger traffic and the adjustment in passenger fees as a result of inflation and to a 0.6% depreciation of the Mexican peso against the U.S. dollar, from an average exchange rate of Ps. 19.0653 in 1H18 to an average exchange rate of Ps. 19.1724 in 1H19. |
- | Non-aeronautical services revenuesinclude: |
i. | The Mexican airports contributed an increase of Ps. 288.1 million, or 22.6%, compared to 1H18, driven mainly by a Ps. 171.8 million increase in revenues from third-party operated businesses. This was mainly due to the opening of commercial spaces, the increase in revenues from car rentals, food and beverage operations, retail stores and timeshares at the Guanajuato, Guadalajara, Puerto Vallarta and Tijuana airports, as well as an increase in revenues from “Duty-free” stores, as a result of contract renegotiations. |
Revenues from businesses operated directly by the Company increased by Ps. 94.0 million or 24.3%, mainly due to an increase in the number of visitors at the VIP lounges as a result of the opening of two new VIP lounges in the La Paz and Puerto Vallarta airports, the opening of seven new convenience stores in the Guanajuato, Mexicali, Puerto Vallarta and Tijuana airports, and an increase in car parking revenues. |
ii. | Montego Bay airport revenues increased by Ps. 29.2 million, or 10.9%, compared to 1H18, mainly due to a 10.2% increase in revenues from duty-free stores, retail stores, leasing of space and food and beverages, as well as to the 0.6% depreciation of the peso versus the U.S. dollar during 1H19. |
6M18 | 6M19 | Change | |
Businesses operated by third parties: | |||
Leasing of space | 112,549 | 124,174 | 10.3% |
Car rentals | 146,203 | 184,247 | 26.0% |
Food and beverage operations | 164,937 | 234,568 | 42.2% |
Retail operations | 169,218 | 186,767 | 10.4% |
Duty-free operations | 218,446 | 260,140 | 19.1% |
Time shares operations | 96,825 | 107,846 | 11.4% |
Ground transportation | 65,543 | 72,747 | 11.0% |
Communications and financial services | 40,845 | 43,242 | 5.9% |
Other commercial revenues | 31,526 | 32,943 | 4.5% |
Total | 1,046,092 | 1,246,674 | 19.2% |
Businesses operated directly by us: | |||
Car parking | 156,614 | 181,000 | 15.6% |
Advertising | 84,462 | 94,868 | 12.3% |
VIP lounges | 100,649 | 134,518 | 33.7% |
Convenience stores | 50,984 | 76,282 | 49.6% |
Total | 392,710 | 486,668 | 23.9% |
Recovery of costs | 102,557 | 125,257 | 22.1% |
Total Non-aeronautical Revenues | 1,541,359 | 1,858,600 | 20.6% |
- | Revenues from improvements to concession assets2 |
Revenues from improvements to concession assets (IFRIC 12) decreased by Ps. 348.4 million, or 56.4%, compared to 1H18, mainly due to a decrease in committed investments under the Master Development Program for the Mexican airports for 2019 that resulted in a decrease in improvements to concession assets of Ps. 256.7 million, or 54.9%, and to a decline in revenues improvements to concession assets at the Montego Bay airport of Ps. 91.7 million, or 61.3%, compared to 1H18.
Total operating costs during 1H19 increased by Ps. 8.9 million, or 0.3%, compared to 1H18, and comprised the following:
[1] Revenues from improvements to concession assets are recognized in accordance with International Financial Reporting Interpretation Committee 12 “Service Concession Arrangements” (IFRIC 12), but this recognition does not have a cash impact or an impact on the Company’s operating results. Amounts included as a result of the recognition of IFRIC 12 are related to construction of infrastructure in each quarter to which the Company has committed in accordance with the Company’s Master Development Programs in Mexico and Capital Development Program in Jamaica. All margins and ratios calculated using “Total Revenues” include revenues from improvements to concession assets (IFRIC 12), and, consequently, such margins and ratios may not be comparable to other ratios and margins, such as EBITDA margin, operating margin or other similar ratios that are calculated based on those results of the Company that do have a cash impact.
- | Operating Costs at the Mexican airports increased by Ps. 22.6 million, or 0.9%, mainly due to an increase in the cost of services of Ps. 164.4 million, or 17.9%, an increase in technical assistance fees and the cost of rights to concession assets of Ps. 62.8 million, or 13.6%, and depreciation and amortization of Ps. 56.3 million, or 9.5%, all of which were offset by a decrease in improvements to concession assets (IFRIC 12) of Ps. 256.7 million, or 54.9%. |
The increase in cost of services was explained by:
● | Other operating expenses increased by Ps. 55.0 million or 33.1% versus 1H18, mainly due to an increase of Ps. 51.5 million, or 54.5%, in the reserve for doubtful accounts, cost of sales in VIP lounges and convenience stores and professional service fees. |
● | Maintenance costs increased by Ps. 44.5 million, or 20.6% versus 1H18, mainly due to maintenance of operating areas, terminal buildings, cleaning services and documented baggage inspection equipment, and the latest expansions to the terminal buildings. |
● | Utility costs increased by Ps. 28.2 million, or 31.6%, compared to 1H18, due to the additional square meters in terminal buildings (as a result of the expansions) and higher energy prices during 1H19. |
● | Employee costs increased by Ps. 24.4 million or 7.3%, compared to 1H18, mainly due to an increase in personnel, and salary adjustments. |
Operating costs at the Montego Bay airport decreased by Ps. 13.7 million, or 1.7% compared to 1H18, mainly due to a decrease in improvements to concession assets (IFRIC12) of Ps. 91.7 million, which was offset by an increase in cost of services of Ps. 12.5 million, or 6.0%, an increase in the cost of concession assets rights of Ps. 45.6 million, or 16.5%, and depreciation and amortization of Ps. 19.1 million or 23.7%
Operating marginincreased by 300 basis points from 52.6% in 1H18 to 55.6% in 1H19. Operating margin, excluding the effects of IFRIC 12, decreased by 10 basis points from 57.8% to 57.7% in 1H19. Operating income increased by Ps. 477.1 million, or 13.2%, compared to 1H18.
EBITDA marginincreased by 330 basis points from 63.9% in 1H18 to 67.2% in 1H19. EBITDA margin, excluding the effects of IFRIC 12, decreased by 50 basis points from 70.2% in 1H18 to 69.7% in 1H19.The nominal value of EBITDA increased by Ps. 553.2 million, or 12.6%,compared to 1H18.
Financial resultincreased byPs. 336.7 million,from a net gain of Ps. 18.4 million in 1H18 to a net loss of Ps. 318.3 million in 1H19. This increase mainly includes:
- | The foreign exchange gain decreased from a gain of Ps. 194.7 million in 1H18 to a gain of Ps. 58.3 million in 1H19 due to a 0.6% depreciation of the Mexican peso against the U.S. dollar in 1H18 compared to an appreciation of 2.6% in 1H19, whichgenerated a decrease in foreign exchange gain of Ps. 136.4 million. In addition, the effect in foreign currency translation effect resulted in a net loss of Ps. 168.5 million compared with 1H18. |
- | Interest expenses increased by Ps. 250.5 million or 61.4% compared to 1H18, mainly due to an increase in debt derived from the issuance of long-term bond certificates(Certificados Bursatiles) of Ps. 3.0 billion, as well as an increase in interest rates and a decline in the fair value of hedging instruments. |
- | Interest income increased by Ps. 50.2 million or 21.7%,due to the increase in the Company’s cash position and higher interest rates. |
Comprehensive incomedeclined by Ps. 126.9 million, or 4.8%, compared to 1H18.
This decrease was mainly the result of higher exchange loss of Ps. 168.5 million.
Income before income taxes increased by Ps. 141.1 million, or 3.9% in 2Q19. Income taxes increased by Ps. 98.5 million, or 9.8%, due to a decline in the benefit from deferred income tax of Ps. 113.8 million and a lower inflation rate, which went from an inflation rate of 1.0% in 1H18 to an inflation of 0.4% in 1H19. This result was offset by a Ps. 15.3 million decrease in taxes incurred.
Statement of Financial Position
Total assets as of June 30, 2019 increased by Ps. 2,508.6 million compared to June 30, 2018, primarily due to the following items: (i) cash and cash equivalents of Ps. 1,944.3 million, (ii) improvements to concession assets of Ps. 809.2 million, (iii) machinery, equipment and improvements to leased buildings of Ps. 179.0 million and (iv) accounts receivable of Ps. 24.8 million. This result was offset by a decline in airport concessions of Ps. 454.3 million, due to amortization.
Total liabilities as of June 30, 2019 increased by Ps. 3,702.2 million compared to the same period of 2018. This increase was primarily due to the following items: (i) an increase in long-term bond certificates(Certificados Bursátiles)of Ps. 3.0 billion, (ii) dividends payable of Ps. 420.5 million, and (iii) increase in long-term bank loans of Ps. 350.5 million. These increases were offset by a decrease in short-term bank loans of Ps. 91.4 million, among others.
Recent Events
In accordance with the regulatory framework applicable to Mexican airports, on June 28, 2019, the Company presented its proposals for the Master Development Program (MDP) and for the applicable passenger fees for the 2020-2024 period to the Federal Aviation Administration (Dirección General de Aeronáutica Civil, or DGAC). Under the applicable Mexican regulatory framework, the Company must obtain approval from the DGAC for its proposals by December 31, 2019.
* * *
Company Description
Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (GAP) operates 12 airports throughout Mexico’s Pacific region, including the major cities of Guadalajara and Tijuana, the four tourist destinations of Puerto Vallarta, Los Cabos, La Paz and Manzanillo, and six other mid-sized cities: Hermosillo, Guanajuato, Morelia, Aguascalientes, Mexicali and Los Mochis. In February 2006, GAP’s shares were listed on the New York Stock Exchange under the ticker symbol “PAC” and on the Mexican Stock Exchange under the ticker symbol “GAP”. In April 2015, GAP acquired 100% of Desarrollo de Concesiones Aeroportuarias, S.L., which owns a majority stake in MBJ Airports Limited, a company operating Sangster International Airport in Montego Bay, Jamaica. Subject to certain conditions precedent, GAP expects to take control of the operation of the Kingston airport in the last quarter of 2019.
This press release contains references to EBITDA, a financial performance measure not recognized under IFRS and which does not purport to be an alternative to IFRS measures of operating performance or liquidity. We caution investors not to place undue reliance on non-GAAP financial measures such as EBITDA, as these have limitations as analytical tools and should be considered as a supplement to, not a substitute for, the corresponding measures calculated in accordance with IFRS.
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management’s current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words “anticipates”, “believes”, “estimates”, “expects”, “plans” and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.
In accordance with Section 806 of the Sarbanes-Oxley Act of 2002 and article 42 of the “Ley del Mercado de Valores”, GAP has implemented a“whistleblower” program, which allows complainants to anonymously and confidentially report suspected activities that may involve criminal conduct or violations. The telephone number in Mexico, facilitated by a third party that is in charge of collecting these complaints, is 01 800 563 00 47. The web site iswww.lineadedenuncia.com/gap. GAP’s Audit Committee will be notified of all complaints for immediate investigation.
Exhibit A: Operating results by airport(in thousands of pesos):
Airport | 2Q18 | 2Q19 | Change | 6M18 | 6M19 | Change |
Guadalajara | ||||||
Aeronautical services | 682,897 | 697,161 | 2.1% | 1,330,024 | 1,389,142 | 4.4% |
Non-aeronautical services | 188,018 | 244,078 | 29.8% | 366,985 | 463,117 | 26.2% |
Improvements to concession assets (IFRIC 12) | 43,372 | 10,394 | (76.0%) | 86,744 | 20,788 | (76.0%) |
Total Revenues | 914,286 | 951,631 | 4.1% | 1,783,752 | 1,873,045 | 5.0% |
Operating income | 596,809 | 598,018 | 0.2% | 1,155,787 | 1,188,218 | 2.8% |
EBITDA | 671,658 | 687,455 | 2.4% | 1,309,872 | 1,362,259 | 4.0% |
Tijuana | ||||||
Aeronautical services | 338,521 | 400,004 | 18.2% | 635,369 | 758,237 | 19.3% |
Non-aeronautical services | 80,625 | 117,233 | 45.4% | 153,512 | 208,954 | 36.1% |
Improvements to concession assets (IFRIC 12) | 49,172 | 5,586 | (88.6%) | 98,344 | 11,171 | (88.6%) |
Total Revenues | 468,318 | 522,822 | 11.6% | 887,225 | 978,362 | 10.3% |
Operating income | 276,610 | 318,809 | 15.3% | 504,255 | 600,362 | 19.1% |
EBITDA | 321,178 | 372,321 | 15.9% | 591,904 | 704,165 | 19.0% |
Puerto Vallarta | ||||||
Aeronautical services | 251,206 | 279,770 | 11.4% | 599,343 | 660,954 | 10.3% |
Non-aeronautical services | 102,172 | 118,166 | 15.7% | 213,597 | 247,268 | 15.8% |
Improvements to concession assets (IFRIC 12) | 3,436 | 2,972 | (13.5%) | 6,873 | 5,945 | (13.5%) |
Total Revenues | 356,813 | 400,908 | 12.4% | 819,813 | 914,167 | 11.5% |
Operating income | 231,960 | 242,091 | 4.4% | 556,570 | 607,339 | 9.1% |
EBITDA | 270,428 | 282,693 | 4.5% | 633,029 | 686,428 | 8.4% |
Los Cabos | ||||||
Aeronautical services | 311,211 | 356,629 | 14.6% | 636,164 | 710,960 | 11.8% |
Non-aeronautical services | 176,231 | 201,824 | 14.5% | 345,987 | 396,433 | 14.6% |
Improvements to concession assets (IFRIC 12) | 72,184 | 61,775 | (14.4%) | 144,368 | 123,550 | (14.4%) |
Total Revenues | 559,625 | 620,228 | 10.8% | 1,126,520 | 1,230,943 | 9.3% |
Operating income | 327,531 | 362,039 | 10.5% | 667,342 | 739,548 | 10.8% |
EBITDA | 381,109 | 422,210 | 10.8% | 773,923 | 856,160 | 10.6% |
Montego Bay | ||||||
Aeronautical services | 362,571 | 379,769 | 4.7% | 741,885 | 818,696 | 10.4% |
Non-aeronautical services | 137,305 | 145,815 | 6.2% | 268,432 | 297,603 | 10.9% |
Improvements to concession assets (IFRIC 12) | 85,359 | 16,927 | (80.2%) | 149,658 | 57,977 | (61.3%) |
Total Revenues | 585,235 | 542,511 | (7.3%) | 1,159,974 | 1,174,276 | 1.2% |
Operating income | 159,182 | 169,775 | 6.7% | 349,847 | 377,807 | 8.0% |
EBITDA | 248,596 | 269,869 | 8.6% | 526,078 | 573,775 | 9.1% |
Exhibit A: Operating results by airport(in thousands of pesos):(continued)
Airport | 2Q18 | 2Q19 | Change | 6M18 | 6M19 | Change |
Guanajuato | ||||||
Aeronautical services | 114,833 | 154,357 | 34.4% | 222,252 | 285,782 | 28.6% |
Non-aeronautical services | 39,139 | 44,241 | 13.0% | 68,711 | 83,462 | 21.5% |
Improvements to concession assets (IFRIC 12) | 13,684 | 817 | (94.0%) | 27,368 | 1,633 | (94.0%) |
Total Revenues | 167,655 | 199,415 | 18.9% | 318,331 | 370,877 | 16.5% |
Operating income | 99,024 | 130,734 | 32.0% | 186,243 | 244,541 | 31.3% |
EBITDA | 114,190 | 148,596 | 30.1% | 215,466 | 279,606 | 29.8% |
Hermosillo | ||||||
Aeronautical services | 78,298 | 88,219 | 12.7% | 150,095 | 161,699 | 7.7% |
Non-aeronautical services | 20,473 | 24,422 | 19.3% | 36,050 | 45,757 | 26.9% |
Improvements to concession assets (IFRIC 12) | 780 | 832 | 6.7% | 1,560 | 1,664 | 6.7% |
Total Revenues | 99,551 | 113,474 | 14.0% | 187,704 | 209,121 | 11.4% |
Operating income | 42,073 | 48,615 | 15.5% | 77,044 | 85,910 | 11.5% |
EBITDA | 59,937 | 68,346 | 14.0% | 111,912 | 124,613 | 11.3% |
Others(1) | ||||||
Aeronautical services | 191,888 | 221,864 | 15.6% | 376,792 | 423,629 | 12.4% |
Non-aeronautical services | 48,258 | 61,496 | 27.4% | 88,086 | 116,006 | 31.7% |
Improvements to concession assets (IFRIC 12) | 51,163 | 23,061 | (54.9%) | 102,326 | 46,121 | (54.9%) |
Total Revenues | 291,309 | 306,421 | 5.2% | 567,204 | 585,756 | 3.3% |
Operating income | 81,111 | 91,351 | 12.6% | 156,372 | 164,712 | 5.3% |
EBITDA | 127,653 | 142,203 | 11.4% | 250,036 | 263,909 | 5.5% |
Total | ||||||
Aeronautical services | 2,331,424 | 2,577,773 | 10.6% | 4,691,925 | 5,209,098 | 11.0% |
Non-aeronautical services | 792,219 | 957,275 | 20.8% | 1,541,359 | 1,858,600 | 20.6% |
Improvements to concession assets (IFRIC 12) | 319,150 | 122,363 | (61.7%) | 617,240 | 268,850 | (56.4%) |
Total Revenues | 3,442,794 | 3,657,410 | 6.2% | 6,850,524 | 7,336,548 | 7.1% |
Operating income | 1,814,300 | 1,961,431 | 8.1% | 3,653,459 | 4,008,436 | 9.7% |
EBITDA | 2,194,748 | 2,393,692 | 9.1% | 4,412,219 | 4,850,913 | 9.9% |
(1) Others include the operating results of the Aguascalientes, La Paz, Los Mochis, Manzanillo, Mexicali and Morelia airports.
Exhibit B: Consolidated statement of financial position as of June 30(in thousands of pesos):
2018 | 2019 | Change | % | |
Assets | ||||
Current assets | ||||
Cash and cash equivalents | 8,280,070 | 10,224,400 | 1,944,330 | 23.5% |
Trade accounts receivable - net | 1,066,451 | 1,091,287 | 24,836 | 2.3% |
Other current assets | 215,815 | 376,953 | 161,138 | 74.7% |
Total current assets | 9,562,336 | 11,692,640 | 2,130,304 | 22.3% |
Advanced payments to suppliers | 212,254 | 170,011 | (42,243) | (19.9%) |
Machinery, equipment and improvements to leased buildings - net | 1,655,031 | 1,834,010 | 178,979 | 10.8% |
Improvements to concession assets - net | 10,325,177 | 11,134,421 | 809,244 | 7.8% |
Airport concessions - net | 11,543,181 | 11,088,915 | (454,266) | (3.9%) |
Rights to use airport facilities - net | 958,646 | 901,973 | (56,673) | (5.9%) |
Other acquired rights | 501,973 | 489,948 | (12,025) | (2.4%) |
Deferred income taxes | 5,386,297 | 5,389,576 | 3,279 | 0.1% |
Other non-current assets | 261,331 | 213,332 | (47,999) | (18.4%) |
Total assets | 40,406,226 | 42,914,825 | 2,508,600 | 6.2% |
Liabilities | ||||
Current liabilities | 5,683,471 | 8,262,415 | 2,578,944 | 45.4% |
Long-term liabilities | 15,253,782 | 16,377,011 | 1,123,229 | 7.4% |
Total liabilities | 20,937,253 | 24,639,426 | 3,702,173 | 17.7% |
Stockholders' Equity | ||||
Common stock | 7,777,576 | 6,185,082 | (1,592,494) | (20.5%) |
Legal reserve | 1,345,710 | 1,592,550 | 246,840 | 18.3% |
Net income | 2,562,886 | 2,600,089 | 37,203 | 1.5% |
Retained earnings | 4,514,704 | 4,579,884 | 65,180 | 1.4% |
Reserve for share repurchase | 2,983,374 | 3,283,374 | 300,000 | 10.1% |
Repurchased shares | (1,733,374) | (1,733,374) | - | 0.0% |
Foreign currency translation reserve | 900,751 | 651,985 | (248,766) | (27.6%) |
Remeasurements of employee benefit – Net | 8,821 | 7,716 | (1,105) | (12.5%) |
Total controlling interest | 18,360,448 | 17,167,306 | (1,193,142) | (6.5%) |
Non-controlling interest | 1,108,525 | 1,108,093 | (432) | (0.0%) |
Total stockholder´s equity | 19,468,973 | 18,275,399 | (1,193,574) | (6.1%) |
Total liabilities and stockholders' equity | 40,406,226 | 42,914,825 | 2,508,600 | 6.2% |
The non-controlling interest corresponds to the 25.5% stake held in the Montego Bay airport by Vantage Airport Group Limited (“Vantage”).
Exhibit C: Consolidated statement of cash flows(in thousands of pesos):
2Q18 | 2Q19 | Change | 6M18 | 6M19 | Change | |
Cash flows from operating activities: | ||||||
Consolidated net income | 1,189,018 | 1,263,573 | 6.3% | 2,618,498 | 2,661,122 | 1.6% |
Postemployment benefit costs | 4,305 | 2,071 | (51.9%) | 4,739 | 6,929 | 46.2% |
Bad debt expense | (3,139) | (5,172) | 64.8% | (6,159) | (25,087) | 307.3% |
Depreciation and amortization | 386,999 | 425,839 | 10.0% | 771,368 | 847,440 | 9.9% |
Lost sale of fixed assets | - | 1,173 | 100.0% | - | 2,062 | 100.0% |
Interest expense | 190,982 | 311,170 | 62.9% | 414,307 | 547,517 | 32.2% |
Loss share of profit of associates | 995 | 3 | (99.7%) | 759 | 7 | (99.1%) |
Long-term provisions | 1,080 | 1,770 | 63.9% | 2,700 | 3,390 | 25.6% |
Income tax expense | 537,173 | 503,081 | (6.3%) | 1,002,876 | 1,101,404 | 9.8% |
Bank loan exchange rate fluctuation | 239,631 | (19,176) | (108.0%) | 43,814 | (70,464) | (260.8%) |
Net loss on derivative financial instruments | (36,913) | 88,164 | (338.8%) | (35,414) | 98,859 | (379.2%) |
2,510,132 | 2,572,496 | 2.5% | 4,817,485 | 5,173,179 | 7.4% | |
Changes in working capital: | ||||||
(Increase) decrease in | ||||||
Trade accounts receivable | 4,269 | 146,456 | 3330.7% | (62,272) | 319,498 | (613.1%) |
Recoverable tax on assets and other assets | (400,876) | (64,829) | (83.8%) | (383,078) | (102,168) | (73.3%) |
Increase (decrease) in | ||||||
Concession taxes payable | (143,576) | (209,778) | 46.1% | (110,169) | (150,118) | 36.3% |
Accounts payable | (284,131) | (145,152) | (48.9%) | 14,007 | (149,296) | (1165.9%) |
Cash generated by operating activities | 1,685,818 | 2,299,193 | 36.4% | 4,275,972 | 5,091,093 | 19.1% |
Income taxes paid | (657,043) | (543,418) | (17.3%) | (1,157,244) | (1,066,816) | (7.8%) |
Net cash flows provided by operating activities | 1,028,775 | 1,755,775 | 70.7% | 3,118,730 | 4,024,278 | 29.0% |
Cash flows from investing activities: | ||||||
Machinery, equipment and improvements to concession assets | (503,809) | (395,736) | (21.5%) | (1,161,436) | (844,627) | (27.3%) |
Cash flows from sales of machinery and equipment | 434 | 332 | (23.5%) | 425 | 707 | 66.5% |
Other investing activities | 9,669 | (27,166) | (381.0%) | 1,396 | (25,574) | (1932.0%) |
Acquisition business | - | 9,586 | 100.0% | - | 9,586 | 100.0% |
Net cash used by investment activities | (493,706) | (412,984) | (16.4%) | (1,159,615) | (859,908) | (25.8%) |
Cash flows from financing activities: | ||||||
Dividends declared and paid non-controlling interest | - | - | 0.0% | (126,403) | - | (100.0%) |
Capital distribution | (1,250,870) | (1,592,494) | 27.3% | (1,250,870) | (1,592,494) | 27.3% |
Debt securities | - | - | 0.0% | - | 3,000,000 | 100.0% |
Proceeds from bank loans | 57,196 | 95,862 | 67.6% | 57,196 | 95,862 | 67.6% |
Payments on bank loans | (3,872) | - | (100.0%) | (75,933) | - | (100.0%) |
Interest paid | (147,573) | (249,009) | 68.7% | (409,488) | (546,295) | 33.4% |
Interest paid on lease | - | (671) | 100.0% | - | (1,988) | 100.0% |
Payments of obligations for leasing | - | (3,074) | 100.0% | - | (7,981) | |
Net cash flows used in financing activities | (1,345,119) | (1,749,386) | 30.1% | (1,805,498) | 947,105 | (152.5%) |
Effects of exchange rate changes on cash held | 464,374 | (25,594) | (105.5%) | 396,309 | (38,531) | (109.7%) |
Net increase in cash and cash equivalents | (345,677) | (432,189) | 25.0% | 549,926 | 4,072,944 | 640.6% |
Cash and cash equivalents at beginning of year | 8,625,747 | 10,656,588 | 23.5% | 7,730,142 | 6,151,457 | (20.4%) |
Cash and cash equivalents at the end of year | 8,280,070 | 10,224,400 | 23.5% | 8,280,070 | 10,224,400 | 23.5% |
Exhibit D: Consolidated statements of profit or loss and other comprehensive income(in thousands of pesos):
2Q18 | 2Q19 | Change | 6M18 | 6M19 | Change | |
Revenues | ||||||
Aeronautical services | 2,331,424 | 2,577,773 | 10.6% | 4,691,925 | 5,209,098 | 11.0% |
Non-aeronautical services | 792,219 | 957,275 | 20.8% | 1,541,359 | 1,858,600 | 20.6% |
Improvements to concession assets (IFRIC 12) | 319,150 | 122,363 | (61.7%) | 617,240 | 268,850 | (56.4%) |
Total revenues | 3,442,794 | 3,657,411 | 6.2% | 6,850,524 | 7,336,548 | 7.1% |
Operating costs | ||||||
Costs of services: | 606,387 | 705,304 | 16.3% | 1,124,011 | 1,300,943 | 15.7% |
Employee costs | 223,320 | 228,793 | 2.5% | 395,270 | 423,116 | 7.0% |
Maintenance | 107,537 | 148,362 | 38.0% | 216,326 | 260,802 | 20.6% |
Safety, security & insurance | 93,263 | 102,312 | 9.7% | 181,226 | 204,443 | 12.8% |
Utilities | 77,829 | 92,489 | 18.8% | 137,602 | 165,258 | 20.1% |
Other operating expenses | 104,438 | 133,348 | 27.7% | 193,587 | 247,324 | 27.8% |
Technical assistance fees | 99,841 | 113,644 | 13.8% | 202,588 | 229,218 | 13.1% |
Concession taxes | 275,287 | 292,887 | 6.4% | 536,402 | 618,154 | 15.2% |
Depreciation and amortization | 386,999 | 425,839 | 10.0% | 771,368 | 847,440 | 9.9% |
Cost of improvements to concession assets (IFRIC 12) | 319,150 | 122,363 | (61.7%) | 617,240 | 268,850 | (56.4%) |
Other income | (3,245) | (5,025) | 54.9% | (4,843) | (8,933) | 84.4% |
Total operating costs | 1,684,419 | 1,655,012 | (1.7%) | 3,246,765 | 3,255,672 | 0.3% |
Income from operations | 1,758,375 | 2,002,399 | 13.9% | 3,603,758 | 4,080,876 | 13.2% |
Financial Result | (31,188) | (235,742) | 655.9% | 18,375 | (318,347) | (1832.5%) |
Share of loss of associates | (995) | (3) | 99.7% | (759) | (7) | 99.1% |
Income before income taxes | 1,726,192 | 1,766,654 | 2.3% | 3,621,374 | 3,762,522 | 3.9% |
Income taxes | (537,173) | (503,081) | (6.3%) | (1,002,876) | (1,101,400) | 9.8% |
Net income | 1,189,019 | 1,263,573 | 6.3% | 2,618,498 | 2,661,122 | 1.6% |
Currency translation effect | 361,175 | (45,788) | (112.7%) | 28,810 | (139,739) | (585.0%) |
Remeasurements of employee benefit – net income tax | 121 | (146) | (220.4%) | 650 | (293) | (145.1%) |
Comprehensive income | 1,550,315 | 1,217,639 | (21.5%) | 2,647,959 | 2,521,090 | (4.8%) |
Non-controlling interest | (76,630) | (19,763) | 74.2% | (59,971) | (44,929) | 25.1% |
Comprehensive income attributable to controlling interest | 1,473,686 | 1,197,876 | (18.7%) | 2,587,988 | 2,476,161 | (4.3%) |
The non-controlling interest corresponds to the 25.5% stake held in the Montego Bay airport by Vantage Airport Group Limited (“Vantage”).
Exhibit E: Consolidated stockholders’ equity(in thousands of pesos):
Common Stock | Legal Reseve | Reserve for Share Repurchase | Repurchased Shares | Retained Earnings | Other comprehensive income | Total controlling interest | Non-controlling interest | Total Stockholders’ Equity | |
Balance as of January 1, 2018 | 9,028,446 | 1,119,029 | 2,728,374 | (1,733,374) | 9,001,269 | 884,471 | 21,028,215 | 1,048,554 | 22,076,769 |
Transfer of earnings | - | 226,680 | - | - | (226,680) | - | - | - | - |
Reserve for repurchase of share | - | - | 255,000 | - | (255,000) | - | - | - | - |
Capital distribution | (1,250,870) | - | - | - | - | - | (1,250,870) | - | (1,250,870) |
Dividends paid non-controlling interest | - | - | - | - | (4,004,886) | - | (4,004,886) | - | (4,004,886) |
Comprehensive income: | |||||||||
Net income | - | - | - | - | 2,562,886 | - | 2,562,886 | 55,613 | 2,618,499 |
Foreign currency translation reserve | - | - | - | - | - | 24,452 | 24,452 | 4,358 | 28,810 |
Remeasurements of employee benefit – Net | - | - | - | - | - | 650 | 650 | - | 650 |
Balance as of June 30, 2018 | 7,777,576 | 1,345,710 | 2,983,374 | (1,733,374) | 7,077,589 | 909,573 | 18,360,448 | 1,108,525 | 19,468,973 |
Balance as of January 1, 2019 | 7,777,576 | 1,345,710 | 2,983,374 | (1,733,374) | 9,552,072 | 783,628 | 20,708,986 | 1,063,164 | 21,772,150 |
Transfer of earnings | - | 246,840 | - | - | (246,840) | - | - | - | - |
Dividends declared | - | - | - | - | (4,425,346) | - | (4,425,346) | - | (4,425,346) |
Reserve for repurchase of share | - | - | 300,000 | - | (300,000) | - | - | - | - |
Capital distribution | (1,592,494) | - | - | - | - | - | (1,592,494) | - | (1,592,494) |
Comprehensive income: | |||||||||
Net income | - | - | - | - | 2,600,089 | - | 2,600,089 | 61,033 | 2,661,122 |
Foreign currency translation reserve | - | - | - | - | - | (123,635) | (123,635) | (16,104) | (139,739) |
Remeasurements of employee benefit – Net | - | - | - | - | - | (293) | (293) | - | (293) |
Balance as of June 30, 2019 | 6,185,082 | 1,592,550 | 3,283,374 | (1,733,374) | 7,179,975 | 659,701 | 17,167,306 | 1,108,093 | 18,275,399 |
For presentation purposes, the 25.5% stake in Desarrollo de Concesiones Aeroportuarias, S.L. (“DCA”) held by Vantage appears in the Stockholders’ Equity of the Company as a non-controlling interest.
As a part of the adoption of IFRS, the effects of inflation on common stock recognized pursuant to Mexican Financial Reporting Standards (MFRS) through December 31, 2007 were reclassified as retained earnings because accumulated inflation recognized under MFRS is not considered hyperinflationary according to IFRS. For Mexican legal and tax purposes, Grupo Aeroportuario del Pacífico, S.A.B. de C.V., as an individual entity, will continue preparing separate financial information under MFRS. Therefore, for any transaction between the Company and its shareholders related to stockholders’ equity, the Company must take into consideration the accounting balances prepared under MFRS as an individual entity and determine the tax impact under tax laws applicable in Mexico, which requires the use of MFRS. For purposes of reporting to stock exchanges, the consolidated financial statements will continue being prepared in accordance with IFRS, as issued by the IASB.
Exhibit F: Other operating data:
2Q18 | 2Q19 | Change | 6M18 | 6M19 | Change | |
Total passengers | 11,123.9 | 12,209.3 | 9.8% | 22,422.5 | 24,096.5 | 7.5% |
Total cargo volume (in WLUs) | 549.2 | 539.9 | (1.7%) | 1,079.8 | 1,079.8 | 0.0% |
Total WLUs | 11,673.0 | 12,749.2 | 9.2% | 23,502.2 | 25,176.4 | 7.1% |
Aeronautical & non aeronautical services per passenger (pesos) | 280.8 | 289.5 | 3.1% | 278.0 | 293.3 | 5.5% |
Aeronautical services per WLU (pesos) | 199.7 | 202.2 | 1.2% | 199.6 | 206.9 | 3.6% |
Non aeronautical services per passenger (pesos) | 71.2 | 78.4 | 10.1% | 68.7 | 77.1 | 12.2% |
Cost of services per WLU (pesos) | 51.9 | 55.3 | 6.5% | 47.8 | 51.7 | 8.0% |
WLU = Workload units represent passenger traffic plus cargo units (1 cargo unit = 100 kilograms of cargo).
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 Pacífico, S.A.B. de C.V. | |
By:/s/ SAÚL VILLARREAL GARCÍA Name: Saúl Villarreal García Title: Chief Financial Officer |
Date July 25, 2019