Q1 2020 Earnings Call
Please standby.
Good day, ladies and gentleman in walk on Schurz first quarter 2020 results Conference call. My name is choppy and I'll be your operator.
This time, all participants are in English and only mode. We will conduct a question and answer session towards the end of today's conference.
Ask a question. Please press star followed by one you make withdraw your question at any time by pressing star follows bite you you are using with Speakerphone. Please let's say you had said before making your selection.
The remainder today's call is being recorded no I would like to turn this call over to Mr. Adolfo Castro Chief Executive Officer. Please go ahead Sir.
Thank you could be pretty good morning, everyone.
Thank you think drilling a joke open ski school systems first quarter.
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It could be subject to change and then how bookings.
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Well I mean, that's been the that'd be good she spends a breaches.
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So I think in accordance with RBC.
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The national trends have been spending to me.
Thank you.
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We'll still be good Nick Nick will be meaningful.
Well do they need because it seems like that's a truck.
That's a joke get the buttons attracted declined sharply in the second half of March.
Nearly 9% year over year.
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Like countries and should be much of the plane Columbia City, 70%.
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I mean, that's what you would make sense thing.
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And that's important.
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I'd be curious he believes the company has to be sure.
Certain features.
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The builders.
Can you give mobile.
Great Good executive to support the trip, it's good it's Kelvin because such a commitment there.
Closed the quarter to do that Pete.
That's what we'll do 11% higher than your input.
This will lead to the conviction that picked from the difference between 50 <unk>.
That's a neither the majority but would there be board since the movie theaters Jeez I just got subsidiary.
This is expensive because there wasn't any they didnt that's going to be says people will get this.
We have principal payments will be book over the medium that's coming due over the next quarter.
So there's going to reconsider some stupid.
But that the troops that there was a bit more.
Yes, that's your seven times.
At the kids at first quarter.
You can do they get school, we should they come to the tables and Kevin Pietersen Eric.
The next quarter.
No just stepping back for mobile.
We'd be going to bridge or there could be usable.
We have successfully navigated.
In their significant charges.
During the night vision, 2001, major who you're thinking because in Florida.
And the 2008 to nine the potential Texas the check one.
And the bankruptcy.
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In Mexico.
Good luck.
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When it gets worldwide.
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So I mean, some that section, which has a strong balance sheet, but generally yours.
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That's true <unk> on the funny, because the World War II.
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But the one because of the teacher.
And then there could be.
March either you can be the Soviet states and that's what it could be tweaks.
Well two passenger traffic what ball mill to the airports, which and what the passenger.
And since a year over year.
With the mainly due to the full load.
Like team can be but the global travel industry became the second half of mortgage.
Oh reports you want to go give you that people can get something done.
In the low nearly 3% in Colombia.
So the mix.
Pretty good dozens of people have done.
Well equipped goods and pulled the because.
Okay, that's all Jeff.
Moving next to the PM, Okay, let's revenues, excluding <unk>, there and the.
Change that's supports it.
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Since the peak invasive performance a quick.
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Passenger in a beating this is a distribution and signed in Colombia swap. The so you can sort of the passage of these.
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The new drivers were not the tradition Kathryn.
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Peer it's been repeated trends insurance recoveries related to that you're getting every year.
That's great to be.
Some of nearly hundreds of people moving that's.
Yeah, the mobile if it's like one meeting.
Given these recoveries, but certainly didn't seem to be able to since you last year over year I.
2.7 billion pits.
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If you call that simple capital allocation captains expenditures were equal to the can be pretty unique that's what's in the core.
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You need what that appear to be Mexico due to the terms of expense you have maybe I.
For the full year.
As we got from school for whole nothing other than planning that's a good pools for definitely approximately but could be infections.
I'd be Clint Stein changes to the continuation and find the taxi we put the cyclical.
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At the beginning of that there's such a thing going forward.
Oh plan school and she will be one of them then youre getting an extension.
To begin to pick a piece yes.
When they get the cold like Crazy.
Jim disruption the construction costs attributable both to the they called <unk> and we've got important goals of Templeton situation.
With that because we have made investments colder than 14, given this waters and they need the conviction certain that drew me things we for Texas.
Well I need capital in Colombia.
Almost didn't want me to answer the Lincoln.
Yeah I.
I would because we've got picks for that.
And going well known <unk> second quarter in major maintenance Capex equivalent.
Nick I would almost you know.
Meeting, we'll get the Schick Wilkinson.
All the married that cash that people want that's for sure.
They are subject to before that.
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Let's see the still.
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Good luck didn't even spilling into the dependent beams and police.
What we can control devices or even the because fault.
We can't control probably react to the Chris.
The people the prospects for the future.
Navigating liquidity crisis, and then the cool.
I believe that New York Wolfowitz, you shouldn't be that show people balance sheet.
We had solid first quarter consoles.
Feeding the threat that we are executing.
And I could there be nice Kathy please open the lines for questions.
Thank you.
<unk> audience.
Star then one for questions again, please make sure your mute function it turned.
Handset picked up.
The corresponding digits.
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Ask questions today, we ask that you please limit yourself to two questions and then reenter the queue.
We'll go first to Alejandro similar kind of credit Suisse.
Thank you I was hoping for coal.
Chris Jones from our side first when you see on yeah, no to cold maximum Terry so considering that their length of the negotiating we did most of it airports and in some cases you compete helped me something not being charged.
Yeah, what could we expect <unk> targets.
The short term, meaning the second quarter on the immediate there I mean, if you're in print Quinn.
Should we still expect sorry to beat cloaks too much on liberal.
I didn't have an effective warning well instantly what we're seeing today, it's a baby and would you like.
Sure we believe the David's role.
Yeah.
Okay, we tried to reduce or themes for the full did want to be will ultimately make.
Sure we haven't lumping all parties, we believe that we can comply with war.
And we'll talk more use the looks like.
Okay. Thank you and my second question assumed no no no called business.
And then thinking the same point the exterior what could we expect condition thurman them.
Commercial revenue per passenger they have you granting you bring payments for a few tenants or longer when need be fair else. Thank you.
Well most of all the contracts that's you may know.
They have to pay the higher all they can you give me a guarantee payment for passenger.
So at the show sales.
So you do we want to kinda back and get people, that's correct being friends for pictures and that's made dramatic concern that says we've got and we are now yeah regions, where just the contract.
Okay. Thank you.
You're welcome.
Well now take a question for Burnett Fernando Sanchez.
<unk>.
Hi, Good morning, Thanks for taking my question my.
My question, who lives over the life of one of the GDP contraction.
A 5% or I just wanted to ask if you have had the opportunity to cost we've deal probably the possibility of delaying the 2021 NBP mandatory topics.
Hi, good morning, well, that's a one year.
The conference Cats flush that saves that Mexico, I can be viewed in the kitchen, Mexico, even if it's in light weight.
It depends what would be drops from Morgan fault. So yeah I got stuff in September.
Of course, and with the current circumstances and <unk>.
<unk>.
Expectations from antibodies.
It's possible that the Mexican it'd be clip like more than foster said yeah.
Well, we've got since Weve been.
Yeah. Good books would be all the good view. Our next time you know next somebody that's from Nick Yes no.
Okay. Thank you very much.
You're welcome.
And now we'll take a question Carlos.
Bank of America.
Oh. Thank you good morning of Okay. Thank you for the goal.
That's all on the deeper didn't you mentioned about something ones like little sure well because of the collection, but can you comment as to whether the dividend will be get sort of there's the possibility of cutting the dividend or do a couple more certainty about passenger traffic that would be the first question and the second would be the related gosh, maybe could you.
Listen idea, what's your cash burn in on a quarterly basis, just to get a sense. So.
Well, you know compare that to really put your strong cash position. Thank you.
Yes of course indicates for it on the TV been gifts degree skilled nursing.
I know, what I won't share who will be coming.
Yeah, if something has to.
<unk>, what's the pools, you probably won't that's for sure.
But he was a scribbled subject to be approval from the board.
The momentum the payment.
Abstral and made as Evan twin peaks, so keeps us.
Sure.
The workload to up to.
When the season will be thing.
He became so what kind of spirit.
What I said to doing that.
Greetings from Green box.
No we quote just killed trees big.
The only bridal pieces are there.
Think of defense team and the concession fees, we paid to the governments and they're working gain.
Just to be vendor of the kids Mexican sports since I've seen.
Ladies and.
Because of the Columbia, 19% one night.
Sure piece of course, it will be the Jesus.
After the traffic is reducing our income is extra juice.
Because the gaming Big <unk>.
Fortunately, we're picking ventures to correct dues as much as you can.
<unk> expenses as a company.
Yeah.
Yeah, you can give a little feature.
Yeah.
Cost reduction will not be significant equal parts and with the reduction in.
Yeah revenue some of the company.
Yeah.
Our next question will come from interest.
Okay.
Hi, Thank you very much by taking my question. So my question.
So when negotiating.
Women are booked Goldman.
Let me play capital.
This is possible.
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Could you repeat the <unk> couldn't Kenya.
Yes. So my second is a depressed negotiates with government that books for local night, all medically capital.
So like I said before.
Accordance with the contract will test that this year.
Yes.
But of course, it will begin to consensus I'm sorry.
I think its name and should be marks.
The Senate pitch and we should that specific situation that some companies that do you feel stopped corporations attitudes cement.
And.
He plots reactivated yeah.
Later on.
Yeah, there was a degree each of the Mexican Goldman.
Okay, so that feels like labs.
It's pretty easy in the country will be means for the projects in that sense.
The woman consumable, it's impossible to all the expandable to your business with that.
So the TV show we have four.
Insecurity should the government.
Sure Yeah put the woman what.
Needs that we would see some disruption you never construction golf courses.
For some loans.
Then we would have to book to Bill beans <unk>.
That's what I can share with you for the moment <unk>.
Thank you Ben.
You will.
Our next question will come from Stephen Trent City.
Good morning, Adolfo and that's very much for.
No taking my question hope that you understand with a well.
Just one quick one for me I know that.
In.
In Mexico.
The man.
Probably I'm not saying that killed.
And <unk>.
Let's say offering any assistance to the costs itself.
What are you hearing from Columbia kind of.
Any indications from them the stuff for what Oh aviation industry get some sort of relief.
Yeah, Steve. Thank you Victoria. Your question then we are old guilty.
As shown in because of Columbia and components into Mexico.
Good.
<unk> active ministries of pick up and it taking us as I said hearing there before.
We were very good he.
Basically shortages were shutting down everything that's from March to that.
And that she can be.
In terms of consoles.
Indicates is the the active seem to be happy in comparison with the active cases, we've gotten mix.
Sure there could.
Soon.
Or at least slapping.
Well the mic and could you said it was just given currency.
Yeah, Tim so what they have said.
For our industry, we had been close it's much too so.
And they have issues decrease in that respect and maybe it's weak.
Sales and your announcement from there.
Yes again extending.
Good day, and helps us or shutting down there would be that's it says.
The mugs for the kids so the domestic application that will.
Be close.
Mike Smart me 11.
The piece of international opt in rate 30.
If it's important to resemble that is the kids at Columbia, 85% off your page and its optimistic and 15% consistent fashion.
That's what we know that's over the course.
That means to me chains.
In health plan.
So they can control devices or.
And there was a coach.
Thank you very much adult for my apologies I couldn't hear all of your amoxicillin so well.
But no indication at this point for example that Colombia, finding any kind of tax relief for Aviation War.
Something along those lines.
Offering kind of financial support.
Well, we have more than I had heard anything to both the gift.
Okay appreciate that I'll I'll, let someone else cost and like to Dolphins Lisa.
You will.
And next we will go to.
Gabriel.
<unk>.
Hi, good morning things for the call I'm, well I have two question.
First one is concerning about account receivables and can you give a like a number where the approximate number a lot.
What's the total the total coming from airline and specific from and Interjet and American Airlines.
My second question is you think you could.
Obtained some waivers in opex or Capex from your current MDP in Mexico and.
Could you will be able to extend the life the concession in Colombia.
Yeah, Hi, good morning intensive account receivables you could see dosing in our you know report is having a cruise in the case of Mexico, Colombia.
Most of the increase since coming from the and then industry.
Yeah, I do not have to deal so up on licking their wounds and internships why requested.
Hey, Tim So fall.
The capital said before.
We have equal and become the Philippines or current situation you don't know they're going to.
To react indicators that sort of course, it's gonna be.
Almost impossible for us too.
Felt to expand our buildings without the materials.
So yeah, that's a little that's what we consider.
Okay. Thank you.
Yes.
And now we will go to.
Santander.
[noise] Kinda talk things protocol.
My first time to some commercial revenues sort of you commit on piece, but am I understanding kind of what you're bringing in just one terminal. So I want to go ahead. Your how are your ratio is there anything going on what are the implications on commercial operations.
Okay, and that's what are they.
Sure.
The first one on difficulties related.
Okay.
When we see commercial revenues and we kind of trying to compare.
Rent levels, they're supposed to what would be.
Fixed amount orthofix part okay.
No payment I mean can you give us any sense, okay got pure thank you.
Okay. That's a as you have said gifts and because of concurrently we have for close to 10 minutes and we're just operating today you can you know for sure all the producers are the people can't be concentrated there.
You see more.
Sure on one side expenses, I know pools will yield inside.
He added benefit that indicates so for <unk>, so confused and then.
Yeah, all the skills are working in that case or Oh reports for the full jeopardy.
Yes, it was a before the event.
As I said before the cool the most of the contracts that we should contracts we have the defendants are.
Related to a new move down keeping them for passengers, who will begin doing it doing okay. Let's talk about one of the deal because that's when it's close so they do that have passenger traffic continues to be looks kept pace.
Event.
Yeah of course.
It would be upgrade keeping them for their patients will be a quote in accordance with the most affected as more and that puts in school.
So they can afford to creating.
No on them.
Thank you and when you compare some good going live on the commission revenues versus what would be the minimum.
Payments from the contract could you give us any idea on that.
It wasn't dictates and he will bring to the centerpiece clinical passenger base.
Okay perfect.
And again as a reminder, that is star one if you like to ask a question well Pos again for just a moment until everyone the opportunity.
And we will now go to.
Hi, Rocco of Morgan Stanley.
I will feel good morning. Thank you for the question. It is a good question actually pretty general question. We'll just wondering if you could provide more color on what are the main initiatives are ready our cost reduction efforts.
Hi, Bill is broken down she would seem as though children paid leave of absence maintenance costs utility costs et cetera, and how are those playing out so far thank you very much.
Hey, the meaning new ships are of course there.
Related to.
Because it's going to cool returns over there and that's just.
She has called have taken to keeping those people.
We are not fair and seeing the amount of vendor to see if they weren't open.
Also in the kitchen can clean.
We are in the process to shut down and one of the warm we push to get their unicorns with added this won't need it.
So I can't believe will be it turned off and things like that night Wolves show, reducing them something then that you would have to pay.
And intense job so more than ventures, we are thinking it's a adjusting some of the contracts Oh nature or main and main concern because of the fields are closed.
And to try as much as possible to the Jewish and do you.
<unk> operating cost and expenses, but once again at the end moved level cost piece. It speaks to eat we fly then it goes to structure of the company the multiple lines are.
Yeah, that's for them and GDP, plus some kind of sexual because of personnel. So we are maintaining.
The person world.
The export.
Enterprises and indicates that you'd get you do your changes, which is weekend to try to do.
Nothing.
Thanks, so much other folks they sit there and have a good bit.
You too.
That that does conclude the question and answer portion of today's conference I'd like to turn the call back over to Mr. Castro for closing remarks.
Thank you compete and thank you again.
What gets beating you know fourth quarter consoles Conference school on behalf of Western we shoot gauge and they see the body.
Ladies and gentlemen that can cause a source first quarter 20 trial results conference call.
Thank you again for your participation you may now disconnect.
[music].