Q2 2020 Grupo Aeroportuario del Pacifico SAB de CV Earnings Call
Good morning, and welcome to GAAP second quarter 2020 conference call all lines have been placed on mute to prevent any background noise. After the presentation. We will open the floor for question and at that time instructions will be given if you like asking a question and it's my pleasure to turn the call overdo it over to muddy of I don't know of I'd.
Corporate Communications. Please go ahead.
Thank you and welcome to the duplicate audio that I see Pico second quarter 2020 conference call today The company, we welcome Mr.
Oh, Gosh, Chief Executive Officer, and Mr., So we'll be at <unk> Chief Financial Officer. Please be advised that we're looking statements may be made during this conference call. They do not account for future economic circumstances industry conditions, the company's future performance or financial results.
Such statements made are based on several assumptions and factors that could change, causing actual results may materially differ from the current expectation for complete note on forward looking statements. Please refer to the beat report issued yesterday. Please note that unless stated otherwise all comparisons in this call will be versus gas results for the copper bulk.
Period of 29 team.
When I would like to turn the call over to Mr. The went down for his opening remarks. Please begin sir.
Thank you all pretty good morning.
So you can see quite.
Okay. That's worked like on the second part fuselage reporting.
We can you do you see burian talk about Cobi, where you can you help no company I don't know would it be industry.
This quarter, how would that Oh, you're talking degree so pretty fixed person.
Well the already knew degrees of 75%.
We'll also I called that 82 million pairs the like two degrees you know.
Our focus on ensuring there won't be enough for passenger I know were important.
Well again, reducing costs I mean, I think our liquidity and most importantly, it's important to airlines no work they love the low wrong.
[noise] approach, we don't above your spoken for troubling wonderful <unk> agreed to just go to recovery.
I worked with go some of the Hilton said you actually how could this due principally from Buffalo to read steam coal.
Good evening.
Good for crude oil where airports in the funny, they shouldn't cleaning to all deal, yes juice work on that mean airports the British concern.
Cleaning crews how people find especially because if you could become a juice basis I know we've come to terms being called it does feel pretty close second thing.
Dangerous fit the where were guilty you go through proper social these dancing on ERP defendants, who might be juices about corporate this can be.
The thing, that's which was posted that especially important conquer Golden gate ATM mechanical keyboard, you've been growing sort of customer.
Golf balls industry just north.
Well the outspoken.
Google onto a common did show called to sell comfort.
Oh, well so they know the first of all those that don't show called it worked please don't you quote all or part were put your mix.
Got you sold for working with it picks.
Well the developer Judy burst people bio security to review <unk>.
If there are some of our financial position I worked up all your team has been to put their liquidity.
Search, reducing our kasper can use to be our focus I'm fighting for around 85% stuff I will go through Turkey.
Your first became cool Oh, gosh wrong, if that would cause before.
Doesn't mean lowering their property income, resulting will cause bogo Cody they called the 47 million during the second quarter.
And then the photo books, I mean, I quoted meal spurred more.
The temporarily cultural nobody wants to area help us to reduce well I've never been consumption as well I said, we could go to your place you meant they then you would see agreements.
These babies in airports. So this is way up to cool flexible contracts, which I love the moments during the quarter would accordingly.
During the month of June we're ready to begin computer we spoke of DC receptive to.
To 15% decreasing the cost of service in Mexico, and 35% Queasy Monkey, let me.
During this period, we also got no could you talk to mediate I'm professional services.
For the mix, where we'll get the cheapest give me I'd you overdue reductions you don't really.
Even with a sequential increase in Boston proper.
Interfyl simply golf during the third quarter, where we love trade very early retirement program adoption for England, which could be going to lead to lower California long term.
Our balance sheet cows remained strong during the funding.
Okay, Great 4.2 billion metric I'm good market to build up a few shut off the made the capital the convenient for gives you a part of the 2021.
Going back four we see the crew to grade life, well, one would be if there's a huge really the june quarter without Qashqai, that's all 15.7 billion basis.
The 557% Mexican pesos I'm, 42% into is on or before.
Oh, well staggered that expected due to Oh, we have somewhat going through a few Bob hope that we're not gonna do for.
Even with long into and see that were comfortable right.
Several that 4.2 billion pesos per capita this equates to 23 months of liquidity called operational expenses. They can you just got a girlfriend ramping over the short there did not your.
This is more getting off to either celebrating with David I couldn't be didn't even better. However, if we needed. We also have the actual for wise, but your traditional there.
Well go to acquire would put those therefore 24.6 billion basis of week, 22% football's that she was called <unk>, beating them.
Coming due next year, we've got some appeared to pay me, so well below $1 billion, even in two tranches due in January and February and 2.5 billion pesos June July.
I love the that's pushy should there be here you know going to be fine you, where we were working on those loans or loans. The Jewish those are good nobody would there.
Well, that's the way chose the net debt to EBITDA, which is good that's why I'm bored 13 times are the growth of difficult work.
I have mentioned before to preserve liquidity during these prices, we postponed the majority of them that they typically.
Those will continually with the bodies that began in the first quite figured I'd also both ducking glycols saving or boost commercial Robyn, it's basically I'm going to structure works in DFT Rogers biking, Love I'm, Philip I look forward the carpet.
Regarding the business could be there on the NBP we face.
I'm doing the construction work is probably good for this year is worth noting due to the cold and will be to restrictions at the beginning of the funding.
It's important to keep in mind that the Mexico since you're not going [laughter] surprise that if the mix because I do not GDP worked to reach among the 5%, though more in the last 12 month GAAP, how their right to request the reopening I rebalance of getting better and BP I've done that their condition.
Viewing assumptions concerning the maximum.
Regarding the depicted should issue about the Mexican said fell back my people at the beginning of this month, the GDP, where you would decrease you more direct person in the last 12 month. So is this is what I wonder if that's probably the official got that Google very stable for money to be you'd be this question.
Our team is going for you I know license, which projects most of the quarterly NBP, which was could be the late.
Well you got goes as we did you capacity needs and worldwide patent used truck.
Because of the like that we love me to workforce to 53 that drove the conflicts that knows really show me the painful force majeure.
Oh, so it's going to go tell me, the Jamaican government health or whether it be gone I really just about everybody else.
This is about that but all these topics, we'll be providing up does that they'd be caught back up.
You're not going to support all of them.
We stopped lease having seven could drive within Scoop. This goes to 100% forward to me My went both feet for do multiple phase two let me.
For the most of human disease go anywhere up to 60% I'm from July to be sender, who I know life well that kids that these days.
However, there was a share will give you a play into out did you.
This is going up like any I know our cold anymore.
It is we're been certainly got dropped I'd be discounts that there will be off today it would be.
Regarding the nice that wed payments to older those to the potential changes for example, levine biking and over that Eric of charges from although not to go services for the most of it will be a joke.
Sure. We go on pending before the Mexico their life to the outstanding balance as of March to help them with the liquidity to cool I Didnt screw type.
We I know like I will go to say bubble I decided to recognize that provision for doubtful accounts. So they said into your business.
It's important to mention dilute it sickle acquire our traffic was Gabriele mainly Bible life, we got stuff in there showed up 60%.
You bet, a booth with 15% I know real Myfico, we'd have to of course, it and now we'll see the American Airlines in fourth place we felt person even if they get exactly what is the one person.
Well, that's another though I just want to make sure that even closer to see passenger start to recover.
Well no signs of you know the come to me that the recovery degree because we all know so hard to get worked out and you all pretty good potential strike classic Oh for airports once I.
I feel confident I felt industry, we've still got half up you beat your Oh disagreed thing I'm letting go of dependent.
We believe that's one of the proper treatment lease up Oliver.
Let me control there enough to go even so we're recording stronger.
In the meantime, we remain confident M. Daughton dead line from them in California.
I'm very proud of how quickly we deem I can they do officials to preserve our company.
Pick our passengers time employees during this crisis.
Thank you.
Oh no build to please open the floor. So your question.
And at this time, we will open the floor for your questions first we will take the questions from the conference call and then the webcast questions. If you would like ask your question. Please press the star key followed by the one key on your Touchtone phone if at any time, you would like to remove yourself and the question can you just press <unk>.
Andy first question comes from Alinda C S with Bank of America. Your line is helping.
Hi, good morning.
Everyone <unk> and <unk> I just.
What do you try to education on the redone renegotiation of the topics are the five year master developer.
And then can you just go where when you expect a these negotiations to begin.
Oh, thank you.
[noise]. Thank you along [laughter] our understanding.
Consistent agreement is that after 12 months, so the crucial minus 5% or well file at least nine is 5% if she could be [laughter] files they see.
If we will file for their review Ulster Master development plan.
For sure before they afford to start.
We expect that you see happen.
He just so where does your so we will work we do we don't Turski for real time ever sold.
The last where did your or their first acquired offtake some easier.
[noise]. Thank you very helpful.
[noise] drilling.
Thank you and the next question comes from diesel Gaxiola with Credit Suisse. Your line is open.
Hi, Good morning, God I was always makes predicting a question.
On the commercial living side, especially for third party business just.
But he was a bit more color.
On the I mean, when my name gardens uranium.
How much of the weak gabi letting you would be colored by you.
Looking at how much if I, just don't use being <unk> and they are going far worse.
Do you follow the country, sorry subject to it.
Thank you.
Thank you equal [laughter] I told you first about that [laughter], whether that's we apply for two or four day commercial revenues for defense [laughter], because what we see it is diminish.
If you want me, we just got hundreds per se.
Oh, I see meaningful Garcia.
If Dan for June we have discussed around 60% of that meaningful rate.
Yes.
From July I know until December.
Yeah, well do you know naval shape, which I would tell them.
Oh, when it's true true, yes, yes, Steve [laughter], what we are talking with them is really with the number of passengers.
We are working you.
Species, one by one basis.
She has shown with each one of our students.
Yeah, we'll be trying to get.
Oh Fair you dig up today, we know.
[laughter] passenger shoots huge in some ways if they stay abusive it's completely multifamily or at least during this year. So we're working with them with the oldest Paramount suggest you [laughter] do you see that koernke boxes.
It's true see Irene per passenger for further we're still stay off this year.
So if.
Oh sure Si business directly operated by GAAP earnings.
His departure, even though it's they if they see longevity advertising not the best view.
Goblet sundae competing sisters [laughter].
You mean graduated to open days, if you for a business depending on their four times, depending on the I'll be on theory of recovery of the market I'm sure.
Each one I know if I were aware business Julie.
We all believe that bond does we cool top breakeven for Dr, especially for the <unk> Dot Dot way.
Radio Crazy all that work back you live.
Older books.
Today, we are hoping they yeah below just.
Q1, Oh, I got to stop I wonder how that Uh huh.
For the moment.
Hi, there Oh Oh, Dave.
Yes, the stores today, we are all pretty easy if there if the capacity why not.
Oh, I see capacity by just that.
We are opening I was getting there's more daily I'm wondering what though.
They they may not easy I used that we are close you leave seem to prefer mine. So they all the Baltic passengers and he's done we've all been Dr. momentum, we know Don Rickles, just break even for those students [noise].
Okay. Thank you very here I was just one follow up if I may Oh.
<unk> or any change.
Or one or.
Well go away from single see going forward.
Oh, Hi, and there will be sold me out out of.
Well, we will continue with that same dividend policy, but obviously for they did the end of this year and we will have to be very careful with the management of or the liquidity of the company. We we don't.
Hey, we don't have same any a estimation of that that'd be them for 420 21. So far so say that I would mean I would mean targets is a to maintain the their liquidity of the company the keeps the.
The healthy <unk> of the operation of the of the airports and too.
To be a ready for all that work commitments next year, we have a separate out of my Tuesdays. Indeed, it will be around say 6 billion pass us off and that's my two disease. So we should be ready in case, we cannot refine and Steve.
These and my two entities so.
So far we don't have any estimation for 10 to 21 and I continue that we'll be very very complicated. It's not it's not a confirmation we have to the way for the end of the of the year endeavor, so severe side and so far.
Our main target is a super surf the cash for the operation and for eyewear debt maturities in our commitments.
I'm trying to 21.
Yes.
Thank you very much so.
And your next question comes from how do you feel Muddiness mid GBM. Your line is now open.
Hi, good morning.
So so we've always thanks for taking my question.
Yeah, I like to asking about the above the cost containment as far as did you already going through maybe if you can add gave us a more more color on on what do you expect I mean do you expect to maintain the cuts bases that you've got these quarter for that for the next quarter.
Ours or or if there's even more opportunities to reduce such a coke cause bases are or what are your your thoughts on that.
The other than my first question.
Hi, and nobody show.
Thank you for your question.
Yeah, we have been working with our suppliers ignored to adjust the level of service and maintenance and security cleaning. So really we Joe's they closed some areas of the airports in order to.
So in their views that costs of energy and we will continue with that train. According to the evolution of the shopping we will be opened in certain areas bad providing the quality of service is according to our concession or women.
However, a <unk> is fine it's part of footwear of out of our targets to continue with the cost controls in you know wherever he would have to can see there that did too that consolidation of Kingston airport our cost of services.
On increase say, even though we have a significant see decrease for for these these quieter and we will try to maintain the I've, the same level or but a little bit lower due to the that trend of the of the.
Passenger in the opening in the into different areas of the of the airports. According to the on to that demand.
Wonderful.
Sure.
Yeah.
Sorry, I was just important for the third quarter two countries or Doug we were trying to early retirement program.
So no show for employees so.
You will have some kind of so you bought for photos those Portugal payments. So they don't today, we we sold studies will contribute to two too.
Sure it's structural for for forward to kill me for the coming quarters.
Perfect.
On the on day, one that passengers from maybe yeah. If you can share with us the evolution that you're seeing in July and and Brett All goes.
I mean, you mentioned there how their share of the airlines.
A wise, but that's what they are you seeing now or is that any of the airlines or east is increasing capacity for all goes or besides the ladies that already announced these 70%.
<unk> for all goes but holly's the evolution that you're seeing your airports that reflecting the capacity and the and the traffic overall.
[music].
Yes, we were seen on.
The increase some capacity just let's just say pull out if.
You will remember well larger she's do they get a silver lining.
Oh sure sports.
We're feeding approached 50 trend also from from B. Riley <unk>.
I would say site.
Service, we are seeing a much bigger [laughter] stations in terms of seats for the Citadel for wireless did you.
Let's see here is how do we would react.
Good day.
The part that is more.
You should go to focus right now [laughter] coffee that's supposed to passengers.
Uh huh.
The deep pulls people Oh God, he should allow outbreaks Si Dot school in some way he doesnt have raised three additional those people probably worse so.
I won't say James do offer we are clearly see an increased number of she's she's got where you don't workforce, but today, it's really difficult true to just talk about 50 man.
[laughter], we are seeing they're supposed to.
We should be should do you sense is that.
We said number of see it's not too they are on sales and the with the rest survey shows that we are full week, we see.
Does your school, Dan we stopped buying those 54 sandal tercel oh passengers for deferred year.
Perfect that's very clear Oh, thank you.
[music].
And your next question comes from markets Beretta with Citi. Your line is now open.
Hi to own and tone and thank you for call then they can my question.
And so aside from I don't mean to call are there any other incorporate their line and then where your who make special arrangements regarding receivable.
Yeah, Hi, Marcos Hey, we have Scott.
Every dollar arrangements with the with the airlines in order to support them a into himself Oh gosh flow.
Obviously, the the mail that that the month of April May and June were very tough right. Now we have seen a recovery in the airlines are usually are are seen. These these recovery. So these arrangements a our to help them to maintain their liquidity and they.
We'll be paying aim will be making monthly payments. After a this month. So as we all the airlines and mainly the domestic airlines, we have done these kind of arrangements.
Okay. Thank you very much.
And as a reminder, he just started in one to ask your question.
First question comes from adults.
<unk> Your line is now open.
Good morning get them and thank you for taking my question.
It's a follow up on one of the previous ones I Wonder if you can you can share with us but never lost.
Topic performance that you've seen so far in Tonight.
Helpful. Thank you.
[noise], sorry, I want to mute sorry.
Well they love traffic that we received on July the first [laughter]. They so July we so that's going to be they close will Simone could not read some fees are rose 63 to bind us 60%.
Oh, sorry.
Hey, why do we are beginning to say aside.
Good reaction official sheets, Oh for 45, Oh strapping yours.
Yes for sure did see always V Kool.
Talk about.
For a longer time Joe's July because they don't dictators uplift, you'll see that could affect it the traffic.
Do you mind, Oh coming months, but I will say that for July we showed that we could be a wrong minus 60% to 64%.
He said minus 666 year old minus 64%.
That's correct.
Thank you and just the.
Last one from from my end Oh on your negotiations or your discussions with Jamaican authorities.
Are you thinking all Oh delaying your your capex commitments or or does that the maximum regulated or charges coming to play I mean, how we should should we be you've got though at this school systems. These conversations like.
Hi, because all these you sold.
I would have been talking with the Jamaican authorities and in that that talks are very positive. They are very open due to hear from our side.
Proposals.
About the that.
Oh, they have the model, we believe that a deferring capex will be that solution and we will try to 2% and ER say.
We will start to percent they the Capex a game.
Program for that for the next year delaying some of the ER projects in obviously try into to maintain the the equipment, which is needed it due to and we need to replace to maintain the.
Well.
And I apologize we are having some technical difficulties, we will have to speakers NAECA here shortly please standby.
[music].
Hello.
Hello.
[noise] anything here.
Well that's all.
Sorry.
So sorry go look what we learn lessons or when we were talking about the they send negotiation or talks with the Jamaican authorities.
I said that we seize and have been very positive.
And we believe that and the frail opt out of the topic will be enough to have these rebalance we do not expect any adjustment in studies.
Hey, Dan negotiation of the last year was it was good in terms of the increase so and due to the circumstances would do not expect any increasing died if we only believes that the ribalance will come from there.
From the topics deferral.
Thank you.
HM.
Thank you. Another reminder, if you'd like to add a follow up question and its during lunch asking question.
And there are no further questions at this time in Q I will now turn the call back to Mr. went up for any closing remarks.
Thank you have already forgeries 13 GAAP.
Yeah for dropped into Somebody's conference call. Please keepsakes.
Thank you.
<unk>.
And this concludes today's call. Thank you for your participation you may now disconnect.
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