Q4 2020 Grupo Aeroportuario del Sureste SAB de CV Earnings Call
Ladies and gentlemen, thank you for standing by todays program will be starting momentarily.
State your patients.
[music].
Yeah.
Good day, ladies and gentlemen, and welcome to a source for fourth quarter 2020 results Conference call. My name is Greg and I'll be your operator today at this time all participants are in a listen only mode. We will conduct a question and answer session towards the end of todays conference if you'd like to ask a question. Please press star followed by one you may withdraw.
To your question at any time by pressing star followed by two.
You're using a speaker phone please lift the handset before making your selection as a reminder, today's call is being recorded now I would like to turn the floor over to Mr. Adolfo Castro Chief Executive Officer. Please go ahead Sir.
Thank you Greg.
Morning, everyone.
The coupons on our coverage book.
Fourth quarter growth.
On the peninsula from Great results.
I hope that's all true.
And just on that.
Okay.
So that's on there.
Sure.
Of course the board.
Constitute forward.
Sure.
Good day.
Sure.
That's accurate.
Sure.
Hi, Kurt.
Okay cool.
Including the impact from Covid.
Great.
Pardon.
Sure.
Sales.
Before starting I'd like to think on our coworkers for their cars.
The company took a cardboard.
Got it.
Okay.
Okay.
And that works well.
And full year.
Back to 'twenty one.
Yeah.
Correct.
Great.
Exactly right.
From a crap restrictions.
Okay.
The bars.
Good day.
Globally.
Well, it's worked are working pretty per my expectations.
That's great.
That's up from there.
Right.
Passenger numbers.
Total truck.
On that.
Hi, Charles.
Cool.
Our balance sheet.
Right.
Book.
He's talking to the shuttle tankers.
Airports in Mexico.
Good progress.
Good day.
Corporate separately book.
I wish I was traveling in Colombia.
B.
Duncan.
Yeah, that's very true.
Okay.
Yeah.
That's true walk down 4%.
That's pretty cool.
Baird.
Okay.
That's a good debt travel that goes on.
Right.
True.
Congrats on coffee.
So on the fourth.
Fourth one per se.
There's a growth quarter.
Hum.
Yeah.
Yes.
Yeah.
Total crap right.
Oh.
In Colombia.
Exactly.
Per se.
So on tropics.
Got it.
Travel expenses.
Cool.
Well that's true.
Performance across the board.
Concrete.
Great.
Uh huh.
On the 28.
Mexico compared to the decline.
Right.
It's simple.
Yes.
You did mention about that.
Yeah on your card.
<unk> focus on Mexico.
Okay.
That's one per se.
Good quarter.
Operating earnings of course.
So they work with.
Yeah Yeah.
Right.
Okay.
That is correct.
Yes.
Okay.
So it won't come.
From recoveries, yes.
And that's all true.
This reflected an increase from COVID-19 cases on there.
Avis.
That's probably true.
Jeffrey.
Travel back.
Okay.
Right.
Well, it's back from Gerrick.
Derek.
That's.
That's true.
That's right that's.
Installs they can prior to departure.
But.
Okay.
On things out there.
And so from surface.
Yes.
Yeah.
Great that's on.
In some prior calls per se to resume b.
Oh, that's good that's true.
Definitely.
Mhm.
Yeah.
Okay.
Yeah.
Yeah.
Total Beecher.
Yes.
I'm asking about that.
Come on.
Hum.
Right right.
With the COVID-19 vaccine.
We expect this to be partially mitigated by the slower recovery on Mexican economy.
Okay.
But from that.
Okay.
That caused some problems.
The award during the summer day.
It's very simple solution, where it is true.
From a balance sheet with price.
Although near term.
Okay.
I would like to take the current choppy travel environment.
Okay.
Next on brakes.
For example.
Total year Gotcha Gotcha.
That's right.
Correct.
Total.
Declining cash non corporate debt.
I was in Mexico, one quicker than say so.
Cool.
That's a good one.
Cash increase.
Oh great.
That's.
Pretty good.
Okay.
The debt that's a year end more important right.
They look very lucky.
You're on putting it.
It's a healthy growth.
But with principal payments on they've been a good sense on that.
My Dream.
The first quarter.
For example.
Yeah.
That's up to them.
So Brazil.
But on the wood floors.
And so on.
Okay.
The remaining pretty bad per se.
And getting back to the business.
Total percentage in Colombia.
Finally net debt.
Yes.
One price.
What.
What you book.
Yes.
Yeah.
It was comparable with the beverage she was one seven times.
It's simple.
The price.
Good day.
The meals from dogs that that's true.
The urban class.
Hold on.
Uh huh.
On the chapter 11 bankruptcy protection.
Thanks.
Good day.
Thanks.
Sure.
So the balance sheet.
So on track record net.
Cash on expenses.
Got it.
Now let me go on.
All the TD on that split in the fourth quarter.
Okay.
On the person.
Yeah.
76 consumption.
Yeah.
Paul.
Sundar I don't know because I know that on.
Revenues in the quarter.
The contracted book.
Seven.
Total revenues.
Brett.
Like what political Richardson from financing revenues in Colombia.
With.
Microsoft right.
That's probably best.
Robert.
On a sequential revenue growth.
Sales were up 42 per se.
On a per passenger basis commercial volume Gordon Neely, one corporate expenses.
That's good that's true for quite a while.
Similar to what the net.
Hum.
Quarter last year.
So they.
As shown on the shop.
Got it got it all.
Commercial expenses threat.
Do you think that's true.
Coca Cola.
Premium growth controlling expenses that's true.
Went down from 7% net year.
Every broker in across all of our airports.
Mexico Cross border balance per se.
Moving to the bone.
And we'll go from there to expenses.
Archlute reflected the temporary book.
I think when airport, which reopened.
We also lowered club sales from directly operated.
And on the whole thing.
Cause I shouldn't be doing.
Lower level.
How you produce you can put up to the elections.
From both the rent levels would go on.
Sure.
Oh, I'm, sorry, I'm sorry.
B because of course.
Very good.
Adjusted 44 per cent.
Note that total quoted them pretty well.
That's been accretive to total seven.
Bullets working force.
We're back.
Okay cool.
A total of $8, one an even broader from a favorable on the correct Paul.
From a young 21 million pets don't drink installation.
But I think book.
Partially offset.
Right.
The increase in provisions for bad debt.
On the sort of dependent.
True bullets.
[noise] declined four.
$4 four per cent.
Out of the year.
Finally in Colombia expenses.
Thank you.
Nearly 33%, mainly reflecting significant gains.
Energy expenses.
Expenses.
No with perpetual.
Well dropping from such a b, reflecting the lower gravity it dates back to price dependent.
Yes.
It depends on.
Consolidated EBITDA.
On 45% year on year.
One point.
It's impacted by COVID-19.
However, it is worth a sequential improvement from.
That's what's reported in the prior quarter.
Importantly, all country operations.
Good day quarter.
Net.
Good day one that's.
All the back book.
Okay.
Batches.
Columbia cheap.
That's it from Baird.
Oh.
What.
Hello.
Adjusted EBITDA margin was 5% in the quarter.
According to 64 per se posted its third quarter total debt.
However.
So on recruitment from 45% margin reported in the third quarter comparable one 8% in the second quarter total.
Moving on to Capex, we made capital investments of $1 5 billion.
With me from fourth quarter.
Book.
That's good.
Sure.
By 95% GAAP.
For the quarter was a good in Mexico.
Okay.
But maybe on airport.
For example expenses 15th day.
They're not completed and balance with great.
We invested a total of two.
91 basis.
Please go ahead.
And we remain on schedule illustrating Brooklyn.
That's a weighted to the second probably a net.
First expenses.
Book.
Firstly sports betting on.
Four.
Of note.
On our Christmas per mouse.
House Class Dubuque Airport.
However, that's a good day.
There has not been a bunch of information about where exactly.
We do know.
I mean, we could talk kind of big airports.
I mean, our military and commercial there.
The book pretty cool, we made capital investments.
So broadly the purchase in the book.
They can make them as referred to walk away from practices that doesn't mean that simple places.
It's a simple 30 good drink.
But he calls I'll be able debt.
Nearly 3 million pairs in the fourth quarter, whereas total of seven New York.
Yeah.
With me on.
On the maintenance Capex.
Catholics go meet with book Colombian airports have been weak in 2020.
Finally, an update on the Sterling.
But it could be true.
I wonder if price in the fourth quarter, we can be people B L.
With me on the waterfall.
Second quarter bookings year.
Before opening the call for questions I would like to breakdown per se.
Strength.
Spartan Purple patch management once calibrating private debt.
On the demand conditions are allowing book that's exactly right.
Okay.
We're ready.
The strength that we're on.
Drafted located airport network called force.
Well on travel insurance.
You didn't like.
B was the big brick he took on the local questions.
Yeah.
Thank you very much Sir and again to the audience at Star and then one for questions and again. Please make sure. Your mute function is turned off for the handset has picked up before pressing the corresponding digits.
And first from credit Suisse, we have Alejandro because I'm on it.
Thank you.
Total bookings were the growth. Thank you for taking my questions.
Just a couple for us the first one on on the MVP or in negotiation.
What what's your expectations, if there aren't any in terms of diaries or discount rate on.
Mostly it's how the ongoing buses and it could be effective there considering.
Considering the resignation of the theater on the Civil Aviation Agency.
Yeah, Hi, Alejandro Hi, good morning, Thank you for your question.
Max impact renegotiation process.
The comics accept what we propose is maintenance capex.
Capex for fall and Claus.
Target increase.
Yeah.
Okay, and any comments on the origination of the figure on civil Aviation I mean these.
Do you delay the process.
Well Theres a one what people had been named on assigned Us from first year. So.
Yeah absolutely.
Completely pencil with people.
So good questions.
Okay.
On my second question, if I may Oh on the dividends any color for 2021 dividend.
Hello for B.
If anything in 'twenty and 'twenty have you been read.
This year. Thank you.
Well it changed at all.
Last year's D B bench and remember that the shareholders.
To put these intensive peaked.
On the ends of the board of directors asked from them by then.
Many of them that day.
Spring 'twenty one.
So that's from what.
What I can say COVID-19.
Okay. Thank you Oliver.
Youre welcome.
Next question will come from Mauricio Martinez with GBM.
Hi, good morning, Thanks for taking my question.
My question just to confirm.
Because I couldn't hear well D. G M. B with you do you expect it to be completed to.
Before the first quarter end to end on gain in the second quarter.
That's correct.
Yeah sure.
Some of them are better negotiation.
It was something that was actually bad news.
And so on processes.
Five in the fourth quarter.
What do you expect things.
Is it from the Covid.
But the first quarter earnings second book.
And in case, you would submit by that but that's the time when do you expect it to start to kick in.
If it's approved B b.
D type increments, you expect attitude to B immediately.
It looks like that.
That's definitely depends from.
From the government debt.
We're working to better price.
Oh boy.
Got it and.
And my second question B on the on.
Your language capacity, especially I need to paint cooling.
Mainly from the U S Airlines have three all these new banks.
On the requirement of the debt.
To come back to the U S.
How have you seen that day the deployment of capacity from from the U S Airlines.
Do you expect this to two to deteriorate or decrease somehow and B E.
First and second quarter or have you seen any improvement in.
In February.
Well, yeah, the problems that they want the capacity.
At the airports, it's not the capacity.
From a bad well, what we're seeing today.
It's less flights so people.
Well.
The lower factor.
But in terms of public data from all loss.
That's right it was simple.
We're working for.
So it's true that day.
Perhaps the other thing per se.
Total value.
Well in terms of Oh.
Let's see.
So it's on the problems.
Okay.
Perfect very.
Very helpful also on.
Well from my side.
And moving on our next question will come from.
This with J P Morgan.
Yeah.
Hi, good morning, and picks for taking my question actually I have two questions. The first one is regarding the commercial part of the business.
Just why or how is what is sort of a strategy for a dozen true one.
In terms of potential discounts to tenants how they had been.
On operating in a critical disadvantaged on discounts Ah towards each year and the second question is regarding costs. We know that you had some limitations in terms of cost reductions given most of the closer fix it.
But if you can comment a little bit wildcard on main initiatives. There. So it's it's aging in and she can change it takes for salt as part of the decreasing and traffic that would be great. Thank you.
You're welcome.
Well in Perm so yeah.
Of course.
Total how did you have some of their reports.
And most importantly on credit metrics.
And where are the.
The shutdown on kind of like towards the B.
On the airport.
On the July.
He was there.
Topic.
So from now on average so.
On the appraisal.
Oh things on.
Of course, there is from I can share what you're thinking.
On the ones with boats.
No.
As soon as we approach the launch.
The normal she plays it cool.
And what's happening from boxes, so to Atlanta.
In total.
That's helpful.
As we have mentioned before the way we collect from them.
The charts.
To them.
It is a bit higher between two longest ones.
Right.
Yeah.
That's it from sales.
How do we connect the higher.
Thanks.
So on that side would it not.
Hmm.
Ooh renegotiate the.
Congrats on the capital debt so.
Okay.
Accounts.
The passengers they don't have to pay debt.
So that's what the day will continue the same strategy and growth.
I think that's pretty cool.
Perfect. Thank you.
You're welcome.
Yeah.
The next question will come from Pablo.
<unk> with Barclays.
Alright.
Hello, Thanks for taking my questions I have just a quick question on Colombia, what are your thoughts in terms of traffic.
For the first couple from here do you think we should see more more activity picking.
Rob or or what's your take thank you.
What basically Columbia has been a class.
So cancel that integration process.
You see what we've.
That percentage.
Yes.
Yeah.
Fisher price as Scott.
B the higher than what we saw with dish, Mexico and Puerto Rico.
Remember that Colombia will shut it down completely as probably the third week of March throughout the year off to the right.
Some of our airports.
The operations in September from others.
So we see the numbers.
Let's say two months for almost three months.
The restock from operations.
I'm doing well.
For this year.
Of course, the important points would be there.
Back to the true cross as I go on there'd be true.
The reported matter.
The second one would be what.
B that all day, but again, it's a tweak.
Net debt.
A lot of our work.
Passenger traffic from Colombia.
Comes from maybe need to book.
And most of these people.
So.
That would be also a key element.
The conversion price.
Perfect. Thank you very much.
You're welcome.
And next from UBS, we have.
<unk>.
Thanks helpful. Thanks for the opportunity so yeah, I would like to hear.
On the capacity of these terminals. So first of all how was the capacity you determine those day back should utilization and determine those back into father and 90 P. B.
There was a spare capacity and by how much.
Also about guaranteed distancing measures badassery swallowing some pain.
It does limit the airport's capacity and to which level.
And also your expectations for any potential changes in those distancing measures the timing.
Yeah.
What exactly should drive.
B B.
The airports capacity true should go back to.
On pre crisis level.
Thank you very much.
Well. Thank you for your question Yeah, It's just a question.
Our reported question and thanks, all day with poked or a bad word.
The question is.
Social distancing measures cycle there.
Alright.
Because the day is clear for us that we cannot go back to the sales number on that.
We have before.
We continue with these measures.
Masters does loved the subpoena.
Then there's depletion normalize so that we are.
Net income.
Sure.
Of course, we will have to.
The adjustments.
Capacity.
Yes of course.
Good practical way again, we've got some sport the best in class.
It's in all of the process.
To date and stay bad debt.
Practice, social distancing won't share.
Taking some additional measures being.
Some of the sales of Macquarie those indicators.
Moving to Pizza hut.
The space in front of it to do just that.
Yeah.
Games and.
On the social distancing measures.
The library.
This was a big percentage from adjustments in our aerials.
Yes.
Cash flow.
Good day.
Okay. Thank you Adolfo.
You're welcome.
Moving on we have one Ponce with Bradesco.
Hi, good morning, all on full and.
Thank you for taking my question. These questions on passenger traffic from the U S. Given that the cash requirements linked to the country Hollywood towards taking on in February I mean is it having a material impact on them, it's been recovering, but but I just wanted to I want to know what's your take on on on the impact of that recovery.
In the short term.
Yes.
Yeah.
Well of course that will have on impact on our.
Core deposits.
I believe that the zone.
On our people.
Sales of multiple adapting to that piece of business.
And then there's about 2019.
Well go next to Mike Moore.
Or it seems like there's lots of topics, let me go back to the public from the team.
Yeah, absolutely put in 18, and we saw a decrease in EBITDA.
Gross profit.
B creams.
<unk> basically to go from my plus five minus five.
And separately.
'twenty with Covid.
Great.
Yeah.
We saw positive growth.
It's probably true.
Boxing on that.
Total was the total point, it's got to be a hard.
Goodbye from all sorts of things ended up 20.
Flow.
And it gets from probably putting all the data.
We have that book.
These days.
So again you are right in the sense that.
Any additional losses.
That's from China.
Six of them.
Profit.
Yeah.
It may have on impact on the table as practicable and so on that would be probably books.
Okay. Thank you very much.
You're welcome.
The next question will come from Stephen Trent with Citi.
Good morning, Adolfo and thanks very much for taking my question.
Two for you and I apologize if I missed it.
How did your comments my from my phone briefly cut off but.
Could you just give me a sense as to how our store itself, it's fitting into this ecosystem.
International travel is having to do these 72 hour test I know in some places hotels are offering their services in some cases airlines are offering this service for a fee.
Is it sort of directly getting involved with any of that in any other parts of Mexico or public or elsewhere.
As well as well.
What do we need we're aware of these new completion on.
Let's just start with the work group.
And on shore.
Their states.
Apologies.
North of the Lumpiness of value.
Expenses for.
The U S passengers I candidly passengers student debt.
Sure.
So the principal simple path.
So good growth.
That's cool.
Four hours before the departure.
Let's see the results, they're all show up with big problems in class Ethernet.
So let me show on points.
The U S packages on kind of in person.
And finally the airport.
Moving to that some places as well so they can get someone a book.
After the war for.
Good day ethical they haven't.
Couldn't be better.
And at the airport.
Exactly.
So I'll be able to fly back again.
Sure. This is working well in both cases.
With them.
And of course the.
Canada after a day.
Our next door.
Also you can say that there would be canceling all deployed to up to April 30th so because of their traffic.
You can see from from our airports the catch up work.
It would just be watching video.
Okay. Appreciate it and just one more from me in case I missed it.
In the case of Colombia.
Could you give us a sense of your discussions on potential force majeure leave I recall back B concession there has some flexibility in terms of being able to cause that regulatory revenue around.
The expiration date.
Well aimed at Columbia, even under that contract.
Yes.
That we that could create let's say the basketball wasn't true because it's.
If you have trouble with a minimum b b.
Great.
The next level flow through.
48.
And before cookies were expressing that in accordance with our estimates.
Concession would be Walgreens Duane reade.
So in that sense, we have actually more.
David.
Cover what we kept moving.
As a result bookings the COVID-19 situation.
So in that sense, the contract where that Youre working.
The market still.
On your for all that.
A good way about imports weekend, it's oh.
Operating loss from the seepage.
Okay.
Appreciate it that's it for me thanks Adolfo.
You're welcome.
And moving on from Scotiabank, we have Gabriel him off on.
Hi, Thanks for the call on just a quick follow up question.
We have seen in the EM trading accounts receivable of any deterioration in such a path.
Tim on puzzle choppy.
Traffic has made the hormone.
Make no profit.
Well have you seen any.
Things are just about how much it b E.
On top go down on your balance sheet could have.
I wasn't quite able to hear all your question correctly.
I'm surprised that simple.
Some problems with something on it.
And then back out of operations and some other airports.
Two things.
That drove the fourth quarter together with the other airports so bookings.
They are bidding out their liquidity problems.
In some cases, it's on.
On payments.
Yeah.
Spaces, our airports are I would say few days.
And some others are class request additional time to pay what they all dogs and in some cases move off that day.
So a guy with some others.
Average interest payments from them and B.
Leave that with some other independents, you've got right that's a good day.
These are important.
The net growth cadence I would say that's important for example, where they didn't.
It seems.
Black from here and there I have to say.
On the reports.
So we'll follow up on site and on what day.
Oh growth.
So that's a b C major.
Major metro properties going forward.
Okay. Thanks.
You're welcome.
Once again folks.
Ladies and gentlemen star one if you do have any questions.
Yeah.
Okay and with nothing of remaining in the queue that will conclude the question and answer portion of today's call I'd like to turn the floor back over to Mr. Castro for any Oh actually I apologize, we Oh no nothing in the queue excuse me I misspoke I will turn the floor back over to Mr. Castro for any additional or closing remarks.
Thank you Chris Gregg.
Thank you again.
Participating in our fourth quarter is still strong principal type of Westwood, We wish you a good day and can sustain seats.
Hi.
Yeah.
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