UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20546
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 November, 2019
Commission File Number: 001-38354
Corporación América Airports S.A.
(Name of Registrant)
4, rue de la Grêve
L-1643, Luxembourg
Tel: +35226258274
Fax: +35226259776
(Address of Principal Executive Office)
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 x 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): ¨
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): ¨
SIGNATURES
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.
| Date: November 22, 2019 | ||
| Corporación America Airports S.A. | ||
| By: | /s/ Andres Zenarruza | |
| Name: | Andres Zenarruza | |
| Title: | Legal Manager | |
| By: | /s/ Raúl Guillermo Francos | |
| Name: | Raúl Guillermo Francos | |
| Title: | Chief Financial Officer | |
Exhibit Index
| Exhibit No. | Description | |
| 99.1 | Press release dated November 22, 2019 - Corporación América Airports S.A. Announces 3Q19 results. |
CORPORACION AMERICA AIRPORTS ANNOUNCES 3Q19 RESULTS
Passenger traffic up 1.4% with growth of 7.8% YoY in Argentina, 16.6% in Armenia and 5.5% in Peru, despite declines in Brazil, Ecuador, Italy and Uruguay
Luxembourg, November 22, 2019— Corporación América Airports S.A. (NYSE: CAAP), (“CAAP” or the “Company”) the largest private sector airport operator based on the number of airports under management and the tenth largest private sector airport operator worldwide based on passenger traffic, reported today its unaudited, consolidated results for the three- and nine- month periods ended September 30, 2019. Financial results are expressed in millions of U.S. dollars and are prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”) as issued by the International Accounting Standards Board.
Commencing 3Q18, the Company began reporting results of its Argentinean subsidiaries applying Hyperinflation Accounting, in accordance to IFRS rule IAS 29 (“IAS 29”), as detailed on Section “Hyperinflation Accounting in Argentina” on page 19.
Third Quarter 2019 Highlights
| § | Consolidated revenues of $417.1 million, up 19.9% YoY. Excluding the impact of IFRS rule IAS 29, revenues increased 12.6% to $438.0, mainly due to higher construction service revenue in Argentina reflecting higher capex in the period. |
| § | Performance of key operating metrics: |
| § | Passenger traffic up 1.4% YoY to 22.5 million |
| § | Cargo volume increased 4.1% to 98.6 thousand tons |
| § | Aircraft movements declined 2.3% to 225.7 thousand |
| § | Operating Income declined 29.0% YoY, to $61.8 from $87.0, mainly impacted by a bad debt provision of $23.1 in Argentina and the impact of IAS 29. The operating margin contracted to 14.8% from 25.0% in 3Q18 |
| § | Adjusted EBITDA was $99.9 million, down 18.5% YoY, with Adjusted EBITDA margin Ex-IFRIC12 contracting 812 bps to 32.3%. Excluding, the bad debt provision recorded in Argentina, Adjusted EBITDA would have been $125.2 million |
| § | Ex-IAS 29, Adjusted EBITDA declined 25.5% YoY, to $102.1 million, and Adjusted EBITDA margin Ex-IFRIC12 contracted 898 bps to 31.7%. Excluding, the bad debt provision recorded in Argentina, the Adjusted EBITDA margin Ex-IFRIC12 would have been 38.9% |
CEO Message
Commenting on third quarter 2019 results, Mr. Martín Eurnekian, CEO of Corporación América Airports, noted: “We continue to navigate unfavorable market conditions, particularly in Argentina, our largest market, and to a lesser extent in Brazil, which impacted our performance in this quarter. Over 22 million passengers travelled through our 52 airports in 3Q19, up over 1% year-on-year, reflecting 4% and 3% growth in domestic and international traffic, respectively, partially offset by a double-digit decline in transit passengers. Traffic at our Brazilian airports continued to be impacted by the cessation of operations of Avianca Brasil.
In Argentina, we continue to experience a mix shift towards more affordable domestic traffic and weaker commercial revenues. Profitability in this market was also impacted by a $23.1 million bad debt provision recorded this quarter related to past due commercial revenues and aircraft fees accumulated for over a year from a local airline.
Despite these challenges, and excluding this bad debt charge, comparable Adjusted EBITDA margin Ex-IFRIC12 was at 39%.
Looking ahead, while we face complex macroeconomic dynamics and low visibility in Argentina, we continue advancing on our investment program to capture additional growth when the economy picks up. In Brazil, we remain focused on adding new domestic and international routes to gradually restore Avianca Brasil’s former capacity at Brasilia Airport. In Italy, we expect to deliver positive traffic growth this year and have begun works at Pisa Airport as we continue to monitor the evolution of Alitalia and the development of Brexit.
In sum, while in the near term we continue to face several headwinds, principally in Argentina and Brazil, we have a successful track record of operating in Argentina for over two decades in different macro cycles. Our resilient business model with over 80% of revenues generated in US dollars is further supported by a solid balance sheet. This provides flexibility as we move ahead in the execution of our investment projects to further expand and modernize our airport network to meet growing demand when the macro environment improves.
Operating & Financial Highlights
(In millions of U.S. dollars, unless otherwise noted)
3Q19 as reported |
3Q18 as reported |
% Var as reported |
IAS 29 3Q19 |
3Q19 ex IAS 29 |
3Q18 ex IAS 29 |
% Var ex IAS 29 | |
| Passenger Traffic (Million Passengers) (1) | 22.5 | 22.2 | 1.4% | 22.5 | 22.2 | 1.4% | |
| Revenue | 417.1 | 348.0 | 19.9% | -20.9 | 438.0 | 388.9 | 12.6% |
| Aeronautical Revenues | 184.8 | 177.1 | 4.4% | -7.5 | 192.4 | 196.0 | -1.9% |
| Non-Aeronautical Revenues | 232.3 | 170.9 | 35.9% | -13.4 | 245.7 | 192.8 | 27.4% |
| Revenue excluding construction service | 308.8 | 302.4 | 2.1% | -11.9 | 320.8 | 335.3 | -4.3% |
| Operating Income | 61.8 | 87.0 | -29.0% | -14.8 | 76.6 | 109.7 | -30.2% |
| Operating Margin | 14.8% | 25.0% | -1020 | - | 17.5% | 28.2% | -1073 |
| Net (Loss) / Income Attributable to Owners of the Parent | -24.6 | -15.2 | 61.9% | 0.6 | -25.2 | -26.9 | -6.3% |
| EPS (US$) | -0.15 | -0.09 | 61.9% | 0.00 | -0.16 | -0.17 | -6.3% |
| Adjusted EBITDA | 99.9 | 122.5 | -18.5% | -2.2 | 102.1 | 137.0 | -25.5% |
| Adjusted EBITDA Margin | 23.9% | 35.2% | -1,126 | - | 23.3% | 35.2% | -1,191 |
| Adjusted EBITDA Margin excluding Construction Service | 32.3% | 40.4% | -812 | - | 31.7% | 40.7% | -898 |
| Net Debt to LTM EBITDA | 2.14 | 2.09 | 514 | - | - | - | - |
Note: Figures in historical dollars (excluding IAS29) are included for comparison purposes.
| 1) | Preliminary data on 750 flights in August and 873 flights in September at Brasilia Airport, due to delays in the submission of information by third parties |
Operating & Financial Highlights
(In millions of U.S. dollars, unless otherwise noted)
9M19 as reported |
9M18 as reported |
% Var as reported |
IAS 29 9M19 |
9M19 ex IAS 29 |
9M18 ex IAS 29 |
% Var ex IAS 29 | |
| Passenger Traffic (Million Passengers) (1) | 32.2 | 29.6 | 8.9% | - | 32.2 | 29.6 | 8.9% |
| Revenue | 1,129.2 | 947.2 | 19.2% | -78.6 | 1,207.8 | 1,175.5 | 2.7% |
| Aeronautical Revenues | 530.0 | 485.3 | 9.2% | -33.0 | 563.0 | 586.5 | -4.0% |
| Non-Aeronautical Revenues | 599.2 | 461.9 | 29.7% | -45.6 | 644.8 | 589.0 | 9.5% |
| Revenue excluding construction service | 880.3 | 829.0 | 6.2% | -52.2 | 932.4 | 1,002.6 | -7.0% |
| Operating Income | 202.8 | 217.9 | -6.9% | -55.8 | 258.5 | 313.4 | -17.5% |
| Operating Margin | 18.0% | 23.0% | -505 | 0.0% | 21.4% | 26.7% | -529 |
| Net (Loss) / Income Attributable to Owners of the Parent | 42.8 | -26.7 | -260.4% | -9.9 | 52.7 | -23.1 | -328.1% |
| EPS (US$) | 0.27 | -0.17 | -258.1% | -0.06 | 0.33 | -0.15 | -320.5% |
| Adjusted EBITDA | 317.1 | 317.3 | -0.1% | -20.1 | 337.1 | 394.8 | -14.6% |
| Adjusted EBITDA Margin | 28.1% | 33.5% | -542 | - | 27.9% | 33.6% | -568 |
| Adjusted EBITDA Margin excluding Construction Service | 35.8% | 38.1% | -227 | - | 36.0% | 39.2% | -322 |
| Net Debt to LTM EBITDA | 2.14 | 2.09 | 513.79 | - | - | - | - |
Note: Figures in historical dollars (excluding IAS29) are included for comparison purposes.
| 2) | Preliminary data on 750 flights in August and 873 flights in September at Brasilia Airport, due to delays in the submission of information by third parties |
Operating Performance
Passenger Traffic
Total passenger traffic increased 1.4% YoY to 22.5 million, principally driven by YoY increases of 7.8% in Argentina and 16.6% in Armenia, which contributed an additional 0.8 and 0.2 million passengers, respectively, and was partially offset by traffic declines in Brazil, Ecuador, Italy and Uruguay.
Traffic dynamics in Argentina remained impacted by the challenging macro environment and the 58.2% quarterly average currency depreciation, resulting in slower growth in overall travel demand and a mix-shift from international to domestic traffic. Domestic traffic growth slowed to 10.3% from 22.1% in the previous quarter, while international traffic increased 0.9%, a slight recovery from the previous downward trend. During the quarter, Air Europa started a new flight connecting Iguazú Airport with Madrid, Spain, via Asunción, Paraguay. Moreover, Norwegian Air Argentina started new domestic routes to Ushuaia and Jujuy operated from Aeroparque Airport, further enhancing connectivity in the country. Furthermore, low-cost carrier Flybondi added a new international route to Rio de Janeiro, Brazil, with three weekly flights, which started operations in October.
Traffic in Italy declined 1.2% YoY, mainly due to a drop of 3.0% at Pisa Airport, reflecting the reduction of operations by Pobeda, which suspended the route to Saint Petersburg and decreased frequencies to Moscow, together with a reduction of flights by Ryanair and British Airways early in the quarter. This was partially offset by an increase of 3.0% at Florence Airport, reflecting additional flights to Paris, France, by Air France, additional routes by Vueling to four new destinations, and, to a lesser extent, additional flights to Madrid, Spain, by Iberia. During the quarter, Ryanair opened new routes to Brussels, Belgium, and Prague, Czech Republic at Pisa Airport, while low cost carrier Vueling inaugurated new international routes at Florence airport, with five weekly flights to Munich, Germany, four weekly flights to Prague, Czech Republic, two weekly flights to Bilbao, Spain, and a daily flight to Vienna, Austria.
In Brazil, estimated figures are disclosed given delays in the submission of information for 1,623 flights out of a total of 40,914 flights, due to information systems transition by third parties. Passenger traffic declined 11.8% YoY, mainly impacted by the cessation of operations by Avianca Brasil. Domestic and transit traffic declined 8.4% and 19.2% respectively, offset by a 22.1% increase in international traffic, according to the new traffic count methodology applied by ANAC since June 2018. Based on the prior methodology, international traffic would have increased 40.5% YoY at Brasilia airport. In addition, during September Gol started additional domestic routes from Brasilia airport to São José do Rio Preto, Araguaína and Barreiras, in partnership with Passaredo, in line with its strategy to expand operations at Brasilia Airport. Importantly, LATAM Airlines started executing its international network expansion at Brasilia Airport, with the opening of the route to Santiago de Chile, Chile, during October 2019, and the route to Lima, Perú during November, while the route to Asunción, Paraguay is expected to start in December.
Passenger traffic in Uruguay declined 2.8% YoY, mainly reflecting the cancellation of Avianca Colombia’s daily route to Bogotá, Colombia. However, Avianca has indicated that it will restore this route next December, with four weekly flights. Traffic also reflects lower passenger traffic from Argentina due to weak macro conditions, which was partially offset by the addition of two more frequencies to Madrid, Spain, by Iberia, during July 2019.
In Armenia, passenger traffic increased 16.6% YoY mainly due to the addition of several new routes and frequencies during 2018 and 2019, and the good performance of Azimuth Airlines’ flights to Russian destinations, together with Ural Airlines’ and Nordwind Airlines’ additional flights to Moscow, Russia. In Ecuador, traffic declined 4.0% reflecting the closure of the airport during September weekends, due to the renovation of the runway and taxiways, which offset incremental passenger traffic from the new flights by Jet Blue and Aeroméxico started earlier this year. Of note, Aeroméxico discontinued this route starting October 2019. In addition, Plus Ultra opened a new route to Madrid, Spain, during July 2019 and low-cost carrier Wingo Airlines started a new flight to Bogotá, Colombia, during August. Moreover, during October Interjet started daily routes to Ciudad de México and to Cancún, Mexico, while Iberia announced a new route to Madrid, Spain, starting in December. In Peru, passenger traffic increased 5.5% YoY.
Domestic passenger traffic, which accounted for 56.6% of total traffic, increased 3.5% YoY principally driven by growth of 10.3%, or 0.7 million passengers in Argentina, which more than offset the 8.4% decline in Brazil. International passenger traffic, which represented 34.2% of total traffic, posted growth of 2.6% in the period, as increases of 16.6% in Armenia, 0.9% in Argentina and 22.1% in Brazil more than offset declines of 0.6% in Italy and 2.9% in Uruguay.
Cargo Volume
Cargo volume increased 4.1% YoY in 3Q19 mainly as a result of higher cargo volume in Brazil and Argentina, which more than offset lower cargo in Ecuador.
Aircraft Movements
Total aircraft movements declined 2.3% YoY, reflecting declines of 13.2% in Brazil, 4.0% in Ecuador and 11.6% in Uruguay, partially offset by growth of 27.9% in Armenia and 0.6% in Argentina.
Tables with detailed passenger traffic, cargo volume and aircraft movement information for each airport can be found on page 23 of this report.
Operational Statistics: Passenger Traffic, Cargo Volume and Aircraft Movements
| 3Q19 | 3Q18 | % Var. | |
| Domestic Passengers (in millions) | 12.7 | 12.3 | 3.5% |
| International Passengers (in millions) | 7.7 | 7.5 | 2.6% |
| Transit Passengers (in millions) | 2.1 | 2.4 | -13.1% |
| Total Passengers (in millions) | 22.5 | 22.2 | 1.4% |
| Cargo Volume (in thousands of tons) | 98.6 | 94.8 | 4.1% |
| Total Aircraft Movements (in thousands) | 225.7 | 231.1 | -2.3% |
| Passenger Traffic Breakdown | Cargo | Aircraft Movements | |||||||||
| Country | 3Q19 | 3Q18 | % Var. | 3Q19 | 3Q18 | % Var. | 3Q19 | 3Q18 | % Var. | ||
| (in millions) | (in thousands of tons) | (in thousands) | |||||||||
| Argentina | 11.4 | 10.5 | 7.8% | 53.5 | 52.4 | 2.1% | 116.1 | 115.4 | 0.6% | ||
| Italy | 2.7 | 2.7 | -1.2% | 3.1 | 2.7 | 13.8% | 24.9 | 24.7 | 0.7% | ||
| Brazil(3) | 4.7 | 5.3 | -11.8% | 21.0 | 17.4 | 20.9% | 40.9 | 47.1 | -13.2% | ||
| Uruguay | 0.5 | 0.5 | -2.8% | 6.0 | 6.2 | -1.8% | 6.3 | 7.1 | -11.6% | ||
| Ecuador (1) | 1.2 | 1.2 | -4.0% | 8.2 | 9.8 | -15.9% | 20.0 | 20.8 | -3.7% | ||
| Armenia | 1.1 | 0.9 | 16.6% | 5.4 | 5.2 | 4.8% | 9.0 | 7.1 | 27.9% | ||
| Peru (2) | 1.0 | 1.0 | 5.5% | 1.4 | 1.2 | 13.2% | 8.4 | 8.8 | -4.9% | ||
| TOTAL | 22.5 | 22.2 | 1.4% | 98.6 | 94.8 | 4.1% | 225.7 | 231.1 | -2.3% | ||
| 1) | CAAP owns 99.9% of ECOGAL which operates and maintains the Galapagos Airport, but due to the terms of the concession agreement, ECOGAL’s results are accounted for by the equity method. However, 100% of ECOGAL’s passenger traffic and aircraft movements are included in this table. |
| 2) | CAAP owns 50.0% of AAP and accounts for its results by the equity method. However, 100% of AAP’s passenger traffic and aircraft movements are included in this table. |
| 3) | Preliminary data on 750 flights in August and 873 flights in September at Brasilia Airport, due to delays in the submission of information by third parties |
Review of Consolidated Results
Results for AAP Airports, the five airports CAAP operates in Peru, and ECOGAL which operates the Galapagos Airport in Ecuador, are accounted for under the equity method.
Commencing 3Q18, the Company began reporting results of its Argentinean subsidiaries applying Hyperinflation Accounting, in accordance to IFRS rule IAS 29, as detailed on Section “Hyperinflation Accounting in Argentina” on page 19.
Revenues
Consolidated Revenues increased 19.9% YoY, or $69.1 million, to $417.1 million in 3Q19, while consolidated revenues excluding the impact of IAS 29 would have increased 12.6%, or $49.2 million, to $438.0 million. Excluding IAS29, in Argentina, revenues increased 18.9% mainly reflecting higher construction service revenues as a result of significant capex in the period, which more than offset lower aeronautical and commercial revenues. In Ecuador, revenues increased 31.6% YoY, or $7.5 million, mainly due to higher construction service revenues. Growth of 11.5%, or $4.3 million, in Armenia resulted from higher fuel demand and prices, together with higher passenger traffic. By contrast, in Italy, revenues declined 8.7%, or $4.1 million, reflecting lower construction service revenues coupled with the impact of the depreciation of the euro against the US dollar. In Brazil, revenues declined 4.3%, or $1.3 million, due to lower passenger traffic and aircraft movements, coupled with a decline in commercial revenues mainly reflecting lower advertising, F&B and parking revenues.
Revenues in Argentina increased 18.9% YoY, or $42.2 million excluding IAS29 mainly reflecting a $57.4 million increase in construction service revenue reflecting higher capex in the period. This was partially offset by: i) a 16.6% decline in commercial revenues, mainly due to lower cargo revenues from the drop in higher-margin imports together with lower Duty Free revenues from the decline in international traffic and overall lower demand, and ii) a 2.8% decline in aeronautical revenues due to a continued mix-shift from international to domestic traffic which is linked to the local currency depreciation. Revenues were also negatively impacted by the FX translation effect on local currency revenues resulting from the 58.2% Argentine peso average depreciation in the period, which more than offset higher overall passenger traffic.
Revenues in Italy declined 8.7% YoY reflecting lower construction service revenues in the period. Excluding IFRIC 12, revenues in Italy declined 2.5% to $41.2 million, primarily reflecting the 4.5% average depreciation of the Euro against the US dollar in the period. In local currency, however, revenues excluding IFRIC 12 increased 1.9%, mainly due to the positive results from commercial initiatives, and increases in passenger fees which offset the decline in passenger traffic.
In Brazil, revenues declined 4.3%, or $1.3 million, due to the 11.8% decline in passenger traffic reflecting the cessation of operations of Avianca Brasil, coupled with lower advertising, F&B and parking revenues, partially offset by the increase of international traffic and higher revenues from VIP lounges.
Revenues in Uruguay increased 1.9%, or $0.5 million, to $28.0, mainly due to a $1.5 million increase in construction service revenue reflecting higher capex in the period, which more than offset declines of 3.7% and 3.8% in aeronautical and commercial revenues, respectively. These declines were driven by lower passenger traffic in the period, combined with lower revenues from Duty Free shops due to lower passenger traffic and demand, and lower Parking revenues, reflecting currency depreciation.
In Armenia, revenues increased 11.5% YoY mainly driven by higher fuel demand and prices, together with higher aeronautical revenues in the period due to increase in passenger traffic, partially offset by the FX currency translation impact from the 4.5% average depreciation of the euro against the US dollar. Revenues in Ecuador increased 31.6% YoY as a result of higher construction service revenues, and, to a lesser extent, higher international traffic in the period coupled with the increase in aeronautical fees starting January 1, 2019.
Excluding construction services, consolidated revenues would have increased 2.1% YoY to $308.8 million on an ‘As Reported’ basis, but declined 4.3% to $320.8 million when also excluding the impact of IAS 29.
Revenues by Segment (in US$ million)
| Country | 3Q19 as reported |
3Q18 as reported |
% Var as reported |
IAS 29 3Q19 |
3Q19 ex IAS 29 |
3Q18 ex IAS 29 |
% Var ex IAS 29 |
| Argentina | 244.7 | 182.6 | 34.0% | -20.9 | 265.7 | 223.5 | 18.9% |
| Italy | 42.6 | 46.7 | -8.7% | - | 42.6 | 46.7 | -8.7% |
| Brazil | 28.4 | 29.7 | -4.3% | - | 28.4 | 29.7 | -4.3% |
| Uruguay | 28.0 | 27.4 | 1.9% | - | 28.0 | 27.4 | 1.9% |
| Armenia | 41.9 | 37.6 | 11.5% | - | 41.9 | 37.6 | 11.5% |
| Ecuador (1) | 31.3 | 23.7 | 31.6% | - | 31.3 | 23.7 | 31.6% |
| Unallocated | 0.2 | 0.2 | -17.7% | - | 0.2 | 0.2 | -17.7% |
| Total consolidated revenue (2) | 417.1 | 348.0 | 19.9% | -20.9 | 438.0 | 388.9 | 12.6% |
1 Only includes Guayaquil Airport.
2 Excluding Construction Service revenue, ‘As reported’ revenues increase 4.0% YoY in Argentina, 11.0% in Armenia and 1.1% in Ecuador, but declined 2.5% in Italy and 3.7% in Uruguay.
Revenue Breakdown (in US$ million)
3Q19 as reported |
3Q18 as reported |
% Var as reported |
IAS 29 3Q19 |
3Q19 ex IAS 29 |
3Q18 ex IAS 29 |
% Var ex IAS 29 | |
| Aeronautical Revenue | 184.8 | 177.1 | 4.4% | -7.5 | 192.4 | 196.0 | -1.9% |
| Non-aeronautical Revenue | 232.3 | 170.9 | 35.9% | -13.4 | 245.7 | 192.8 | 27.4% |
| Commercial revenue | 123.3 | 124.7 | -1.1% | -4.4 | 127.7 | 138.6 | -7.9% |
| Construction service revenue (1) | 108.2 | 45.6 | 137.4% | -9.0 | 117.3 | 53.6 | 118.7% |
| Other revenue | 0.7 | 0.6 | 25.3% | 0.0 | 0.7 | 0.6 | 25.3% |
| Total Consolidated Revenue | 417.1 | 348.0 | 19.9% | -20.9 | 438.0 | 388.9 | 12.6% |
| Total Revenue excluding Construction Service revenue (2) | 308.8 | 302.4 | 2.1% | -11.9 | 320.8 | 335.3 | -4.3% |
1 Construction Service revenue equals the construction or upgrade costs plus a reasonable margin.
2 Excludes Construction Service revenue.
Aeronautical revenue accounted for 44.3% of total revenues and increased 4.4% YoY to $184.8 million. Had IAS 29 not been applied, Aeronautical Revenues would have decreased 1.9% YoY, or $3.7 million, mainly reflecting declines of:
| · | 3.4%, or $2.8 million, in Argentina as a result of the currency translation effect on domestic traffic from the 58.2% average currency depreciation in the period and the mix-shift from international to domestic traffic. |
| · | 4.2%, or $1.3 million, in Italy, impacted by the 4.5% quarterly average depreciation of the Euro against the US dollar. In local currency, however, aeronautical revenue remained flat reflecting the increase in passenger fees which offset the 1.2% decline in passenger traffic in the period and lower handling revenues. |
| · | 5.2%, or $0.8 million in Brazil, reflecting the decline in passenger traffic, partially offset by a 40% increase in higher-margin international traffic. |
By contrast, aeronautical revenues in Armenia increased 9.0% YoY, or $1.4 million, primarily driven by growth in international passenger traffic at Zvartnots Airport, which more than offset the depreciation of the Euro against the US dollar.
Non-Aeronautical revenues accounted for 55.7% of total revenues, and increased 35.9% YoY, or $61.4 million, to $232.3 million. Had IAS 29 not been applied, Non-aeronautical revenues would have increased 27.4% YoY, or $52.8 million, mainly driven by:
| § | A $63.6 million, increase in Construction Service revenue, to $117.3 mainly reflecting investments of $103.7 million in Argentina, and investments in Ecuador and Armenia of $7.2 million and $2.7 million, respectively. |
| § | A 7.9%, or $11.0 million, decline in Commercial Revenues, to $127.7 million, mainly reflecting a decline of 16.6%, or $12.4 million, in Argentina as a result of lower cargo imports due to macro conditions, lower passenger demand, particularly in duty free, and the FX translation effect on domestic revenues from the Argentine peso depreciation. In addition, Brazil reported a 3.5%, or $0.5 million, decline in Commercial Revenues impacted by lower advertising, F&B and parking revenues, which more than offset higher VIP lounges revenues. By contrast, Commercial Revenues in Armenia increased 12.6%, or $2.4 million, mainly from higher fuel demand and prices, and increased overall commercial demand due to higher passenger traffic. In Italy, revenues remained flat due to the currency depreciation, although posted a 4.8% increase in local currency. |
Excluding Construction Service revenue, non-aeronautical revenues would have declined 1.0% YoY to $124.0 million. Had IAS 29 not been applied, Non-aeronautical revenues excluding Construction Service revenue would have declined 7.8% YoY to $128.4 million.
Operating Costs and Expenses
During 3Q19, Operating Costs and Expenses increased 35.4% YoY, or $93.8 million, to $359.1 million. Had IAS 29 not been applied, Consolidated Operating Costs and Expenses would have increased 28.5% YoY, or $81.1 million, to $365.5 million, mainly reflecting higher construction service costs from capital investments in Argentina, Ecuador and Uruguay, coupled with a $23.1 million bad debt charge in Argentina, and, to a lesser extent, higher fuel costs in Armenia, which more than offset the decline in concession fees in both Argentina and Brazil.
Cost of Services rose 32.9% YoY, or $75.0 million, to $302.8 million. Excluding the IAS 29 impact in Argentina, Cost of services would have increased 25.8% YoY, or $62.6 million, reflecting the following increases:
| § | A $63.8 million, increase in construction service costs, primarily due to an increase in Argentina of 122.6%, or $57.3 million, and, to a lower degree, increases of $7.3 million and $1.5 million in Ecuador and Uruguay, respectively, reflecting higher capex in the period, partially offset by a $2.8 million decline in Italy. |
| § | An 11.5%, or $1.4 million, increase in cost of fuel sold, reflecting higher fuel demand and prices in Armenia. |
This more than offset a decline of 6.7%, or $3.1 million, in concession fees, mainly the result of a 8.1%, or $2.1 million, drop in Argentina related to the decline in revenues, and a decline of 16.9%, or $1.1 million, in concession fees in Brazil reflecting the impact of the change in the passenger curve by which the concession fee is calculated.
Excluding Construction Service cost, Cost of Services would have declined 6.7% YoY, or $12.2 million, to $194.8. When also excluding the impact of IAS29, Cost of services would have declined 0.6%, or $1.2 million.
Selling, General and Administrative Expenses (“SG&A”) increased 51.5% YoY, or $18.9 million, to $55.6 million in 3Q19 on an ‘As reported’ basis, and 46.4%, or $18.8 million, when excluding the impact of IAS 29, primarily reflecting a $23.1 million bad debt charge recorded in Argentina, in relation with over-an-year accumulated past due commercial revenues and aircraft fees from a local airline. This more than offset a $1.8 million decline in taxes, mainly resulting from lower sales taxes due to the decline in revenues in Argentina.
Excluding Construction Service cost, Operating Costs and Expenses would have increased 14.1%, or $31.0 million, to $251.2 million. Had IAS 29 not been applied, comparable Operating Costs and Expenses Ex-IFRIC12 would have increased 7.5%, or $17.4 million YoY, to $248.5 million.
Costs and Expenses (in US$ million)
3Q19 as reported |
3Q18 as reported |
% Var as reported |
IAS 29 3Q19 |
3Q19 ex IAS 29 |
3Q18 ex IAS 29 |
% Var ex IAS 29 | |
| Cost of Services | 302.8 | 227.8 | 32.9% | -2.6 | 305.4 | 242.8 | 25.8% |
| Salaries and social security contributions | 45.8 | 43.1 | 6.5% | -1.7 | 47.5 | 47.2 | 0.8% |
| Concession fees | 41.4 | 41.5 | -0.2% | -1.8 | 43.3 | 46.4 | -6.7% |
| Construction service cost | 108.0 | 45.2 | 139.0% | -9.0 | 117.0 | 53.2 | 119.9% |
| Maintenance expenses | 29.8 | 27.5 | 8.6% | -2.3 | 32.2 | 32.0 | 0.4% |
| Amortization and depreciation | 36.1 | 32.7 | 10.2% | 12.4 | 23.7 | 24.5 | -3.6% |
| Other | 41.6 | 37.8 | 9.9% | -0.2 | 41.8 | 39.5 | 5.8% |
| Cost of Services Excluding Construction Service cost | 194.8 | 182.6 | 6.7% | 6.4 | 188.4 | 189.6 | -0.6% |
| Selling, general and administrative expenses | 55.6 | 36.7 | 51.5% | -3.7 | 59.4 | 40.6 | 46.4% |
| Other expenses | 0.8 | 0.8 | -8.2% | 0.0 | 0.7 | 1.0 | -26.2% |
| Total Costs and Expenses | 359.1 | 265.3 | 35.4% | -6.3 | 365.5 | 284.3 | 28.5% |
| Total Costs and Expenses Excluding Construction Service cost | 251.2 | 220.1 | 14.1% | 2.7 | 248.5 | 231.1 | 7.5% |
Adjusted EBITDA and Adjusted EBITDA excluding Construction Service
Adjusted EBITDA in 3Q19 declined 18.5% YoY to $99.9 million, with Adjusted EBITDA margin contracting 1,126 bps to 23.9% from 35.2% in 3Q18. Excluding Construction service margin, Adjusted EBITDA margin contracted 812 bps to 32.3%, from 40.4% in 3Q18.
Excluding the impact of IAS 29 in 3Q19, Adjusted EBITDA would have declined 25.5% YoY, or $34.9 million, to $102.1 million, mainly reflecting a 42.0%, or $33.2 million decline in Argentina, partially offset by a $2.0 million increase in Armenia. Adjusted EBITDA margin contracted 1,191 bps YoY to 23.3%. Excluding both the impact from IAS 29 and construction service margin, Adjusted EBITDA margin would have contracted 898 bps to 31.7%, from 40.7% in 3Q18.
Excluding IAS29 and the $23.1 million bad debt charge recorded in Argentina, Adjusted EBITDA would have been $125.2 million, and Adjusted EBITDA margin ex-IFRIC would have contracted 176 bps to 38.9%.
Adjusted EBITDA by Segment (in US$ million)
3Q19 as reported |
3Q18 as reported |
% Var as reported |
IAS 29 3Q19 |
3Q19 ex IAS 29 |
3Q18 ex IAS 29 |
% Var ex IAS 29 | |
| Argentina | 43.6 | 64.6 | -32.5% | -2.2 | 45.8 | 79.0 | -42.0% |
| Italy | 15.1 | 15.8 | -4.5% | - | 15.1 | 15.8 | -4.5% |
| Brazil | 4.4 | 6.3 | -29.2% | - | 4.4 | 6.3 | -29.2% |
| Uruguay | 13.5 | 13.4 | 0.6% | - | 13.5 | 13.4 | 0.6% |
| Armenia | 18.2 | 16.2 | 12.4% | - | 18.2 | 16.2 | 12.4% |
| Ecuador | 6.7 | 6.4 | 4.3% | - | 6.7 | 6.4 | 4.3% |
| Unallocated | -1.5 | -0.7 | 101.4% | - | -1.5 | -0.7 | 101.4% |
| Perú | -0.2 | 0.5 | -129.7% | - | -0.2 | 0.5 | -129.7% |
| Total segment EBITDA | 99.9 | 122.5 | -18.5% | -2.2 | 102.1 | 137.0 | -25.5% |
Adjusted EBITDA Reconciliation to Income from Continuing Operations (in US$ million)
3Q19 as reported |
3Q18 as reported |
% Var as reported |
IAS 29 3Q19 |
3Q19 ex IAS 29 |
3Q18 ex IAS 29 |
% Var ex IAS 29 | |
| Income from Continuing Operations | -32.5 | -21.6 | 50.0% | 0.6 | -33.1 | -33.7 | -1.9% |
| Financial Income | -8.1 | -15.8 | -48.6% | 0.6 | -8.7 | -43.6 | -80.1% |
| Financial Loss | 113.2 | 114.2 | -0.9% | -49.2 | 162.4 | 197.5 | -17.8% |
| Inflation adjustment | 6.3 | 10.0 | -36.6% | 6.3 | 0.1 | 0.9 | -93.0% |
| Income Tax Expense | -17.4 | 0.8 | -2271.6% | 26.9 | -44.3 | -10.7 | 313.4% |
| Amortization and Depreciation | 38.3 | 34.9 | 9.7% | 12.6 | 25.7 | 26.6 | -3.7% |
| Adjusted EBITDA | 99.9 | 122.5 | -18.5% | -2.2 | 102.1 | 137.0 | -25.5% |
| Adjusted EBITDA Margin | 23.9% | 35.2% | -1,126 | - | 23.3% | 35.2% | -1,191 |
| Adjusted EBITDA excluding Construction Service | 99.6 | 122.1 | -18.4% | -2.2 | 101.8 | 136.5 | -25.4% |
| Adjusted EBITDA Margin excluding Construction Service | 32.3% | 40.4% | -812 | - | 31.7% | 40.7% | -898 |
Financial Income and Loss
CAAP reported a Net financial loss of $111.4 million in 3Q19 compared to a loss of $108.5 million in 3Q18. Had IAS 29 not been applied, Net financial loss would have declined by 0.6%, or $0.9 million, to $153.8million, mainly reflecting lower net foreign exchange expenses/gains in Argentina in connection with its financial debts and assets, due to the depreciation of the peso against the US dollar.
3Q19 as reported |
3Q18 as reported |
% Var as reported |
IAS 29 3Q19 |
3Q19 ex IAS 29 |
3Q18 ex IAS 29 |
% Var ex IAS 29 | |
| Financial Income | 8.1 | 15.8 | -48.6% | -0.6 | 8.7 | 43.6 | -80.1% |
| Interest income | 5.0 | 7.3 | -32.3% | -0.6 | 5.5 | 8.3 | -33.3% |
| Foreign exchange income | 2.7 | 7.9 | -66.3% | 0.0 | 2.7 | 34.8 | -92.3% |
| Other | 0.5 | 0.5 | -6.5% | 0.0 | 0.5 | 0.5 | -6.5% |
| Financial Loss | -113.2 | -114.2 | -0.9% | 49.2 | -162.4 | -197.5 | -17.8% |
| Interest Expenses | -23.6 | -21.0 | 12.2% | 0.9 | -24.5 | -21.0 | 16.8% |
| Foreign exchange transaction expenses | -73.3 | -72.3 | 1.4% | 48.3 | -121.6 | -155.6 | -21.8% |
| Leases financial cost | -0.1 | 0.0 | - | 0.0 | -0.1 | 0.0 | - |
| Changes in liability for concessions | -15.8 | -18.7 | -15.6% | 0.0 | -15.8 | -18.7 | -15.6% |
| Other expenses | -0.4 | -2.2 | -82.0% | 0.0 | -0.4 | -2.2 | -82.0% |
| Inflation adjustment | -6.3 | -10.0 | -36.6% | -6.3 | -0.1 | -0.9 | -93.0% |
| Inflation adjustment | -6.3 | -10.0 | -36.6% | -6.3 | -0.1 | -0.9 | -93.0% |
| Financial Results, Net | -111.4 | -108.5 | 2.7% | 42.4 | -153.8 | -154.8 | -0.6% |
See “Use of Non-IFRS Financial Measures” on page 20.
Income Tax Expense
During 3Q19, the Company reported a tax gain of $17.4 million, mainly due to a tax credit of $25.0 million in Argentina, reflecting the pre-tax loss recorded in the quarter mainly impacted by financial expenses, partially offset by tax expenses of $3.7 million in Italy, $2.7 million in Armenia, and $2.4 million in Uruguay.
Net Income and Net Income Attributable to Owners of the Parent
During 3Q19, CAAP reported Net Loss for the Period of $32.5 million compared to a loss of $21.6 million in 3Q18. While Operating Income declined $10.8 million YoY, higher net loss reflects higher SG&A due to bad debts recorded in Argentina, as explained above and higher financial expenses of $12.5 million, mainly attributed to the depreciation of the Argentine Peso against the US dollar, partially offset by a $17.8 million in income tax gain.
During 3Q19, the Company reported a Net Loss Attributable to Owners of the Parent of $24.6 million and loss per common share of $0.15, compared with a Net Loss Attributable to Owners of the Parent of $15.2 million in 3Q18 equivalent to loss per common share of $0.09 for the same period last year.
Consolidated Financial Position
As of September 30, 2019, cash and cash equivalents amounted to $257.6 million, a 16.3% increase from $$221.5 million as of June 30, 2019. Total Debt at the close of the quarter increased to $1,210.2, from $1,136.2 million as of June 30, 2019, mainly reflecting the two credit facility agreements entered into by our Argentine subsidiary. An amount of $762.7 million, or 63.0% of total debt is denominated in U.S. dollars, while $281.6, or 23.3%, is denominated in Brazilian reals and $165.9, or 13.7%, is in Euros.
The Net Debt to LTM EBITDA ratio stood at 2.14x as of September 2019, compared with Net Debt to EBITDA of 2.12x as of June 2019.
Consolidated Debt Indicators (in US$ million)
| As of Sept 30, 2019 | As of Jun 30, 2019 | As of Mar 31, 2019 | As of Dec 31, 2018 | |
| Leverage | ||||
| Total Debt / LTM Adjusted EBITDA (Times)1,3 | 2.72x | 2.63x | 2.63x | 2.53x |
| Total Net Debt / LTM Adjusted EBITDA (Times) 2,3 | 2.14x | 2.12x | 2.04x | 1.98x |
| Total Debt | 1,210.2 | 1,136.2 | 1,137.3 | 1,126.7 |
| Short-Term Debt | 158.6 | 149.6 | 121.2 | 98.9 |
| Long-Term Debt | 1,051.6 | 986.7 | 1,016.1 | 1,027.8 |
| Cash & Cash Equivalents | 257.6 | 221.5 | 255.0 | 244.9 |
| Total Net Debt4 | 952.6 | 914.8 | 882.3 | 881.8 |
1 The Total Debt to EBITDA Ratio is calculated as CAAP’s interest-bearing liabilities divided by its EBITDA.
2 The Total Net Debt to EBITDA Ratio is calculated as CAAP’s interest-bearing liabilities minus Cash & Cash Equivalents, divided by its EBITDA.
3 The Total Net Debt is calculated as Total Debt minus Cash & Cash Equivalents.
| Total Debt by Segment (in US$ million) | ||
| As of Sep 30, 2019 | As of Jun 30, 2019 | |
| Argentina | 504.6 | 398.6 |
| Italy (1) | 124.5 | 133.2 |
| Brazil (2) | 290.6 | 315.2 |
| Uruguay | 208.1 | 204.6 |
| Armenia | 82.4 | 82.3 |
| Ecuador | - | 2.4 |
| Total | 1,210.2 | 1,136.2 |
1 Of which approximately $64.4 million remain at Toscana Aeroporti level.
2 Of which approximately $271.1 million remain at Inframérica Concessionaria do Aeroporto de Brasilia level.
Maturity of borrowings:
| 1 year or less | 1 - 2 years | 2 – 5 years | Over 5 years | Total | |
| Debt service | 224.3 | 230.9 | 491.1 | 713.8 | 1,660.2 |
| Cash by Segment (in US$ million) | |
| As of Sep 30, 2019 | |
| Argentina | 90.7 |
| Italy (1) | 29.1 |
| Brazil | 14.3 |
| Uruguay | 32.5 |
| Armenia | 32.4 |
| Ecuador | 21.0 |
| Intermediate holding Companies | 37.5 |
| Total | 257.6 |
1 Of which approximately $19.5 million remain at Toscana Aeroporti level.
2 Of which approximately $13.2 million remain at Inframérica Concessionaria do Aeroporto de Brasilia level.
CAPEX
During 3Q19, CAAP made capital expenditures of $ 111.8 million on an ‘As reported’ basis, or $ 119.9 million when excluding IAS 29, a 102.1% YoY increase from $59.3 million in 3Q18, mainly reflecting higher capex in Argentina. The most significant investments in 3Q19 include:
| § | $104.3 million, invested in Argentina primarily for the construction of the new departure terminal building and multilevel parking at Ezeiza Airport, the landfill for the construction of a new car parking facility on Costanera Avenue at Aeroparque Airport, the construction of new terminal buildings at Iguazú and Jujuy airports, the expansion of the terminal building at Bariloche, Mar del Plata and Esquel airports, as well as various capex programs across other airports of the concession, |
| § | $7.4 million invested in Ecuador, primarily due to the refurbishment of the runway, taxiways and related works, stemming from the new capex program resulting from extension of the Guayaquil concession agreement last year, |
| § | $2.9 million invested in Italy, primarily on Master plan development in Florence Airport and Pisa expansion works, together with new equipment at Florence and Pisa Airport, and |
| § | $2.0 million invested in Uruguay, mainly in relation
with the implementation of SISCA (Sistema Integrado de Seguridad y Control Aeroportuario) project related to the perimeter
security system. |
Review of Segment Results
Argentina
The Company’s main concession in Argentina, AA2000, accounted for approximately 10.9 million passengers, or 48.6%, of CAAP’s 22.5 million total passengers worldwide served during the quarter. Aeroparque and Ezeiza, the country’s two largest airports, had approximately 3.2 million and 3.0 million passengers in 3Q19, respectively.
Argentina represented 60.7% of the Company’s 3Q19 consolidated revenues and 44.9% of its adjusted EBITDA, excluding the effect of IAS 29.
Starting in 3Q18, reported numbers are presented applying Hyperinflation accounting for the Company’s Argentinean subsidiaries, in accordance with IAS 29, as explained above.
The following table presents the impact from Hyperinflation accounting on 3Q19 under the column ‘IAS 29’, while the columns “3Q19 ex IAS 29” and “3Q18 ex IAS 29” presents results calculated without the impact from Hyperinflation accounting. The impact of IAS 29 is presented only for AA2000, the Company’s largest subsidiary in Argentina which accounted for 96.2%, 99.5% and 99.1% of passenger traffic, revenues and Adjusted EBITDA of the Argentina segment in 3Q19.
3Q19 as reported |
3Q18 as reported |
% Var as reported |
IAS 29 3Q19 |
3Q19 ex IAS 29 |
3Q18 ex IAS 29 |
% Var ex IAS 29 | |
| OPERATING STATISTICS | |||||||
| Domestic Passengers (in millions) | 7.8 | 7.0 | 10.3% | - | 7.8 | 7.0 | 10.3% |
| International Passengers (in millions) | 3.2 | 3.2 | 0.9% | - | 3.2 | 3.2 | 0.9% |
| Transit Passengers (in millions) | 0.4 | 0.3 | 20.7% | - | 0.4 | 0.3 | 20.7% |
| Total Passengers (in millions) | 11.4 | 10.5 | 7.8% | - | 11.4 | 10.5 | 7.8% |
| Cargo Volume (in thousands of tons) | 53.5 | 52.4 | 2.1% | - | 53.5 | 52.4 | 2.1% |
| Total Aircraft Movements (in thousands) | 116.1 | 115.4 | 0.6% | - | 116.1 | 115.4 | 0.6% |
| FINANCIAL HIGHLIGHTS | |||||||
| Aeronautical Revenue | 92.0 | 83.4 | 10.3% | -7.5 | 99.5 | 102.4 | -2.8% |
| Non-aeronautical revenue | 152.8 | 99.2 | 54.0% | -13.4 | 166.2 | 121.1 | 37.2% |
| Commercial revenue | 57.6 | 60.4 | -4.7% | -4.4 | 61.9 | 74.3 | -16.6% |
| Construction service revenue | 95.2 | 38.8 | 145.3% | -9.0 | 104.2 | 46.8 | 122.6% |
| 0.0 | 0.0 | - | 0.0 | 0.0 | 0.0 | - | |
| Total Revenue | 244.7 | 182.6 | 34.0% | -20.9 | 265.7 | 223.5 | 18.9% |
| Total Revenue Excluding IFRIC12(1) | 149.5 | 143.8 | 4.0% | -11.9 | 161.5 | 176.7 | -8.6% |
| Cost of Services | 189.8 | 121.0 | 56.9% | -2.6 | 192.5 | 136.0 | 41.5% |
| Selling, general and administrative expenses | 35.5 | 16.6 | 114.1% | -3.7 | 39.2 | 20.4 | 92.1% |
| Other expenses | 0.1 | 0.5 | -74.8% | 0.0 | 0.1 | 0.7 | -86.2% |
| Total Costs and Expenses | 225.5 | 138.1 | 63.3% | -6.3 | 231.8 | 157.1 | 47.5% |
| Total Costs and Expenses Excluding IFRIC12(2) | 130.3 | 99.3 | 31.2% | 2.7 | 127.6 | 110.3 | 15.7% |
| Adjusted Segment EBITDA | 43.6 | 64.6 | -32.5% | -2.2 | 45.8 | 79.0 | -42.0% |
| Adjusted Segment EBITDA Mg | 17.8% | 35.4% | -1,757 | - | 17.2% | 35.4% | -1,812 |
| Adjusted EBITDA Margin excluding IFRIC 12(3) | 29.1% | 44.9% | -1,579 | - | 28.3% | 44.7% | -1,638 |
| Capex | 96.2 | 38.8 | 147.9% | -8.0 | 104.3 | 46.8 | 122.7% |
1 Excludes Construction Service revenue.
2 Excludes Construction Service cost.
3 Excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets, and is calculated by dividing EBITDA by total revenues less Construction Service revenue.
9M19 as reported |
9M18 as reported |
% Var as reported |
IAS 29 9M19 |
9M19 ex IAS 29 |
9M18 ex IAS 29 |
% Var ex IAS 29 | |
| OPERATING STATISTICS | |||||||
| Domestic Passengers (in millions) | 21.2 | 18.4 | 15.5% | - | 21.2 | 18.4 | 15.5% |
| International Passengers (in millions) | 9.9 | 10.3 | -3.7% | - | 9.9 | 10.3 | -3.7% |
| Transit Passengers (in millions) | 1.1 | 1.0 | 16.0% | - | 1.1 | 1.0 | 16.0% |
| Total Passengers (in millions) | 32.2 | 29.6 | 8.9% | - | 32.2 | 29.6 | 8.9% |
| Cargo Volume (in thousands of tons) | 164.4 | 169.5 | -3.0% | - | 164.4 | 169.5 | -3.0% |
| Total Aircraft Movements (in thousands) | 338.1 | 334.8 | 1.0% | - | 338.1 | 334.8 | 1.0% |
| FINANCIAL HIGHLIGHTS | |||||||
| Aeronautical Revenue | 273.2 | 225.3 | 21.2% | -33.0 | 306.2 | 326.5 | -6.2% |
| Non-aeronautical revenue | 391.0 | 264.9 | 47.6% | -45.6 | 436.6 | 392.0 | 11.4% |
| Commercial revenue | 167.7 | 162.7 | 3.1% | -19.2 | 186.9 | 235.2 | -20.5% |
| Construction service revenue | 223.2 | 102.1 | 118.6% | -26.4 | 249.7 | 156.8 | 59.2% |
| Total Revenue | 664.2 | 490.2 | 35.5% | -78.6 | 742.8 | 718.5 | 3.4% |
| Total Revenue Excluding IFRIC12(1) | 440.9 | 388.1 | 13.6% | -52.2 | 493.1 | 561.6 | -12.2% |
| Cost of Services | 495.3 | 322.2 | 53.7% | -16.9 | 512.2 | 439.6 | 16.5% |
| Selling, general and administrative expenses | 64.9 | 43.8 | 48.1% | -7.2 | 72.1 | 63.1 | 14.2% |
| Other expenses | 0.5 | 0.8 | -38.4% | 0.0 | 0.5 | 1.1 | -53.2% |
| Total Costs and Expenses | 560.7 | 366.9 | 52.8% | -24.1 | 584.8 | 503.8 | 16.1% |
| Total Costs and Expenses Excluding IFRIC12(2) | 337.6 | 264.8 | 27.5% | 2.3 | 335.3 | 347.2 | -3.4% |
| Adjusted Segment EBITDA | 176.1 | 173.5 | 1.5% | -20.1 | 196.2 | 251.0 | -21.8% |
| Adjusted Segment EBITDA Mg | 26.5% | 35.4% | -887 | 25.5% | 26.4% | 34.9% | -851 |
| Adjusted EBITDA Margin excluding IFRIC 12(3) | 39.9% | 44.7% | -476 | 38.5% | 39.8% | 44.7% | -489 |
| Capex | 223.2 | 101.7 | 119.5% | 27.3 | 250.5 | 157.1 | 59.4 |
1 Excludes Construction Service revenue.
2 Excludes Construction Service cost.
3 Excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets, and is calculated by dividing EBITDA by total revenues less Construction Service revenue.
Passenger Traffic in Argentina rose 7.8% YoY in 3Q19, with domestic traffic increasing 10.3% and international traffic up 0.9%, a slight recovery from the previous downward trend. Domestic traffic benefitted from the addition of new routes, low cost carriers and higher promotional activity.
During the quarter, Air Europa started a new flight connecting Iguazú Airport with Madrid, Spain, via Asunción, Paraguay. Moreover, Norwegian Air Argentina started new domestic routes to Ushuaia and Jujuy operated from Aeroparque, further enhancing connectivity in the country. Furthermore, low-cost carrier Flybondi added a new international route to Rio de Janeiro, Brazil, with three weekly flights, which started operations in October.
Cargo volume was up 2.1% YoY, showing an improvement when compared to the 3.3% decline in 2Q19, while total aircraft movements remained stable during the period.
Revenues increased 34.0% YoY, or $62.2 million, to $244.7 million in 3Q19. Excluding the impact of IAS 29, revenues would have been $265.7 million, up 18.9%, or $42.2 million YoY, primarily reflecting higher construction revenue in the quarter due to higher capex, partially offset by a decline in commercial and aeronautical revenues, mainly due to a mix-shift from international to domestic traffic, the FX translation effect on local currency revenues from the 58.2% quarterly average Argentine peso depreciation, and lower commercial demand.
| · | Aeronautical revenue ex-IAS29 declined 2.8%, or $2.8 million, primarily reflecting the continued mix-shift from international to domestic traffic, together with and the currency translation effect on the share of local currency denominated revenues, offsetting higher international and domestic traffic. |
| · | Commercial revenues ex-IAS29 fell 16.6%, or $12.4 million, as the difficult macro environment resulted in lower cargo activity and a decline in duty free shop sales, together with the impact of the Argentine peso depreciation on the share of local currency denominated revenues. This more than offset higher Advertising revenues, from new contracts, and higher VIP lounges revenues due to increased activity. |
| · | Construction Service revenue ex-IAS29 increased $57.4 million to $104.2, mainly reflecting higher capex in the period in line with the capex program announced for 2019. |
Excluding construction service revenue and the impact of IAS29, total Argentina revenue in 3Q19 decreased 8.6% YoY, or $15.2 million, to $161.5 million.
Total Costs and Expenses increased 63.3%, or $87.4 million, to $225.5 million. Had IAS 29 not been adopted, Total cost and expenses would have increased 47.5%, or $74.7 million, primarily due to an increase of $57.4 million, in Construction Service costs reflecting significantly higher capex in the quarter, and a bad debt provision charge of $23.1 million.
Cost of services ex-IAS29 increased 41.5% YoY, or $56.5 million, to $192.5 million, primarily due to an increase of $57.4 million in Construction service costs reflecting significantly higher capex in the quarter. Excluding construction service costs, Cost of services would have declined 1% YoY, or $0.9 million, driven mainly by the following:
| · | An 8.1%, or $2.1 million, decline in concession fees resulting from lower revenues, |
| · | A 23.9%, or $1.5 million, decline in services and fees, reflecting easier comps as in 3Q18 certain consultancy fees were incurred, |
| · | A $1.8 million increase in office expenses, reflecting the classification of IATA and SITA expenses as Cost of services, instead of SG&A. |
SG&A ex-IAS29 increased by 92.1% YoY, or $18.8 million, to $39.2 million in 3Q19, mainly due to the following:
| · | A $23.1 million bad debt charge in relation with past due commercial revenues and aircraft fees from a local airline accumulated over more than one year, |
| · | A 9.2%, or $1.0 million, decline in turnover taxes related to the decline in revenues coupled with lower banking transaction taxes, and |
| · | A $2.0 million decline in office expenses reflecting the classification of IATA and SITA expenses as Cost of services, instead of SG&A. |
Adjusted Segment EBITDA in Argentina declined 32.5% YoY, or $21.0 million, to $43.6 million in 3Q19, with Adjusted Segment EBITDA margin Ex-IFRIC12 down by 1,579 bps to 29.1%. Had IAS 29 not been adopted, Adjusted Segment EBITDA would have declined 42.0%, or $33.2 million, with Adjusted EBITDA margin EX-IFRIC12 contracting 1,638 bps to 28.3% in 3Q19 from 44.7% in 3Q18.
During 3Q19 CAAP made capital expenditures of $96.2 on an ‘As reported’ basis, or $104.3 when excluding the impact of IAS29, primarily for the construction of the new departure terminal building and multilevel parking at Ezeiza Airport, and the landfill for the construction of a new car parking facility on Costanera Avenue at Aeroparque Airport. Investments also include the construction of new terminal buildings at Iguazú and Jujuy airports, the expansion of the terminal building at Bariloche, Mar del Plata and Esquel airports, as well as various capex programs across other airports of the concession.
Italy
CAAP’s Italian segment represented 9.7% of consolidated 3Q19 revenues and 14.8% of adjusted EBITDA, excluding the effect of IAS 29. Pisa Airport had approximately 1.8 million passengers while Florence Airport served 0.9 million passengers in 3Q19.
| 3Q19 | 3Q18 | % Var. | 9M19 | 9M18 | % Var. | |
| OPERATING STATISTICS | ||||||
| Domestic Passengers (in millions) | 0.5 | 0.5 | -3.7% | 1.3 | 1.4 | -2.7% |
| International Passengers (in millions) | 2.2 | 2.2 | -0.6% | 5.1 | 5.1 | 0.5% |
| Transit Passengers (in millions) | 0.0 | 0.0 | 63.5% | 0.0 | 0.0 | 72.3% |
| Total Passengers (in millions) | 2.7 | 2.7 | -1.2% | 6.4 | 6.4 | -0.1% |
| Cargo Volume (in thousands of tons) | 3.1 | 2.7 | 13.8% | 9.6 | 8.4 | 14.2% |
| Total Aircraft Movements (in thousands) | 24.9 | 24.7 | 0.7% | 61.5 | 60.7 | 1.4% |
| FINANCIAL HIGHLIGHTS | ||||||
| Aeronautical Revenue | 29.0 | 30.2 | -4.2% | 72.5 | 77.4 | -6.3% |
| Non-aeronautical revenue | 13.7 | 16.5 | -17.1% | 36.0 | 43.0 | -16.2% |
| Commercial revenue | 11.5 | 11.5 | 0.3% | 29.0 | 28.4 | 2.2% |
| Construction service revenue | 1.4 | 4.4 | -67.9% | 5.4 | 11.1 | -51.5% |
| Other revenue | 0.7 | 0.6 | 26.4% | 1.6 | 3.5 | -53.7% |
| Total Revenue | 42.6 | 46.7 | -8.7% | 108.5 | 120.4 | -9.9% |
| Total Revenue Excluding IFRIC12(1) | 41.2 | 42.3 | -2.5% | 103.1 | 109.3 | -5.6% |
| Cost of Services | 26.7 | 30.3 | -12.0% | 75.8 | 85.8 | -11.8% |
| Selling, general and administrative expenses | 3.9 | 3.5 | 14.2% | 10.8 | 10.3 | 5.3% |
| Total Costs and Expenses | 30.6 | 33.8 | -9.3% | 86.6 | 96.1 | -9.9% |
| Total Costs and Expenses Excluding IFRIC12(2) | 29.3 | 29.7 | -1.3% | 82.3 | 86.1 | -4.4% |
| Adjusted Segment EBITDA | 15.1 | 15.8 | -4.5% | 31.2 | 33.1 | -5.8% |
| Adjusted Segment EBITDA Mg | 35.4% | 33.9% | 155 | 28.8% | 27.5% | 124 |
| Adjusted EBITDA Margin excluding IFRIC 12(3) | 36.5% | 36.7% | -22 | 29.2% | 29.3% | -13 |
| Capex | 2.9 | 5.0 | -42.7% | 10.5 | 13.2 | -20.1% |
1 Excludes Construction Service revenue.
2 Excludes Construction Service cost.
3 Excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets, and is calculated by dividing EBITDA by total revenues less Construction Service revenue.
Passenger Traffic in Italy declined 1.2% YoY, mainly due to a drop of 3.0% at Pisa Airport, reflecting the reduction of operations by Pobeda, which suspended the route to Saint Petersburg and decreased frequencies to Moscow, together with a reduction of flights by Ryanair and British Airways early in the quarter. This was partially offset by an increase of 3.0% at Florence Airport, reflecting additional flights to Paris, France, by Air France, additional routes by Vueling to four new destinations, and, to a lesser extent, additional flights to Madrid, Spain, by Iberia. During the quarter, Ryanair opened new routes to Brussels, Belgium, and Prague, Czech Republic at Pisa Airport, while low cost carrier Vueling inaugurated new international routes at Florence airport, with five weekly flights to Munich, Germany, four weekly flights to Prague, Czech Republic, two weekly flights to Bilbao, Spain, and a daily flight to Vienna, Austria. Cargo volume was up 13.8%, while total aircraft movements increased 0.7% YoY.
Revenues in 3Q19 declined 8.7% YoY, or $4.1 million, to $42.6 million, principally reflecting a decline in construction service revenue, due to lower capex in the quarter. Excluding construction service revenue, revenues declined 2.5% YoY, or $1.1 million, to $41.2 million, impacted by the 4.5% average quarterly depreciation of the euro against the US dollar. In local currency, however, revenues excluding IFRIC12 increased 1.9% YoY.
| · | Aeronautical revenue declined 4.2%, or $1.3 million, mainly due to the effect of the depreciation of the Euro against the US dollar during the period. In local currency, aeronautical revenues were flat despite lower traffic volume, primarily reflecting, higher revenues from the increase in the Passenger with Reduced Mobility fee granted in February 2019 and the increase in passenger use fees at Florence Airport in April 2019. |
| · | Commercial revenue remained flat at $11.5 million in an ‘As reported’ basis, but increased 4.8% when measured in local currency, mainly due to higher revenues from new agreements with car rentals at Florence Airport together with new Advertising agreements and higher VIP revenues, partially offset by decline in Parking, due to lower passenger traffic and lower demand at Pisa Airport. |
| · | Construction service revenue declined $3.0 million, due to lower capex in the quarter. |
Cost of services declined 12.0% YoY, or $3.6 million, due to lower construction service cost and currency depreciation in the quarter. An increase in services and fees from higher professional fees, an advertising campaign and a new passenger assistance contract were offset by lower Maintenance provision and a decline in salaries.
SG&A increased 14.2% YoY, or $0.5 million, as a result of increases in services and fees due to higher utilities tariffs and higher taxes, together with higher spending in passenger assistance due to cancelled flights. SG&A also reflects the recognition of the amortization of leased assets under the new IFRS16 lease accounting standard.
Adjusted Segment EBITDA in Italy declined 4.5%, or $0.7 million. Excluding construction services Adjusted Segment EBITDA margin ex-IFRIC12 contracting 22 basis points to 36.5% from 36.7% in 3Q18. Measured in local currency, Adjusted Segment EBITDA remained flat YoY.
During 3Q19 CAAP made capital expenditures for $2.9 million in Italy, primarily on Master plan development in Florence Airport and preliminary works related to the expansion at Pisa airport, together with new equipment at both airports.
Brazil
Brazil represented 6.5% of the Company’s consolidated 3Q19 revenues and 4.3% of its adjusted EBITDA, excluding IAS 29. Brasilia Airport and Natal Airport had approximately 4.1 million and 0.6 million passengers in 3Q19, respectively.
| 3Q19 | 3Q18 | % Var. | 9M19 | 9M18 | % Var. | |
| OPERATING STATISTICS | ||||||
| Domestic Passengers (in millions) | 2.9 | 3.2 | -8.4% | 8.4 | 9.0 | -5.8% |
| International Passengers (in millions) | 0.1 | 0.1 | 22.1% | 0.4 | 0.4 | 6.2% |
| Transit Passengers (in millions) | 1.6 | 2.0 | -19.2% | 5.1 | 5.7 | -10.6% |
| Total Passengers (in millions) | 4.7 | 5.3 | -11.8% | 13.9 | 15.0 | -7.3% |
| Cargo Volume (in thousands of tons) | 21.0 | 17.4 | 20.9% | 68.4 | 47.1 | 45.0% |
| Total Aircraft Movements (in thousands) | 40.9 | 47.1 | -13.2% | 119.3 | 138.3 | -13.7% |
| FINANCIAL HIGHLIGHTS | ||||||
| Aeronautical Revenue | 13.8 | 14.6 | -5.2% | 41.2 | 45.1 | -8.7% |
| Non-aeronautical revenue | 14.6 | 15.1 | -3.5% | 45.3 | 47.0 | -3.5% |
| Commercial revenue | 14.6 | 15.1 | -3.5% | 45.3 | 47.0 | -3.5% |
| Total Revenue | 28.4 | 29.7 | -4.3% | 86.5 | 92.1 | -6.0% |
| Cost of Services | 23.4 | 24.7 | -5.0% | 72.3 | 80.2 | -9.8% |
| Selling, general and administrative expenses | 3.4 | 3.0 | 12.3% | 12.7 | 11.4 | 11.4% |
| Other expenses | 0.2 | 0.1 | 268.9% | 0.3 | 0.3 | 18.5% |
| Total Costs and Expenses | 27.1 | 27.8 | -2.8% | 85.3 | 91.9 | -7.2% |
| Adjusted Segment EBITDA | 4.4 | 6.3 | -29.2% | 10.5 | 13.0 | -18.8% |
| Adjusted Segment EBITDA Mg | 15.6% | 21.1% | -548 | 12.2% | 14.1% | -191 |
| Capex | 1.0 | 2.6 | -59.8% | 3.0 | 5.8 | -47.6% |
Note: This segment does not include the effects of IFRIC 12 with respect to the construction or improvements to concessioned assets.
Passenger Traffic in Brazil declined 11.8% YoY, mainly impacted by the cessation of operations by Avianca Brasil. Estimated figures are disclosed given delays in the submission of information for 1,623 flights out of a total of 40,914 flights, due to information systems transition by third parties. Domestic and transit traffic declined 8.4% and 19.2% respectively, offset by a 22.1% increase in international traffic, according to the new traffic count methodology applied by ANAC since June 2018. Based on the prior methodology, international traffic would have increased 40.5% YoY at Brasilia airport reflecting the routes to Miami, Orlando and Buenos Aires opened by Gol Airlines during 4Q18 and the new flight to Cancún opened in June 2019. In addition, during September Gol started additional domestic routes from Brasilia airport to São José do Rio Preto, Araguaína and Barreiras, in partnership with Passaredo, in line with its strategy to expand operations at Brasilia Airport. Importantly, LATAM Airlines started executing its international network expansion at Brasilia Airport, with the opening of the route to Santiago de Chile, Chile, during October 2019, and the route to Lima, Perú during November, while the route to Asunción, Paraguay is expected to start during December. Cargo volume was up 20.9%, while total aircraft movements declined 13.2% YoY.
Revenues in 3Q19 declined 4.3% YoY, or $1.3 million, reflecting lower passenger traffic.
| · | Aeronautical revenue declined 5.2% YoY, or $0.8 million, due to lower overall passenger traffic and lower revenues from aircraft fees, partially offset by higher revenues from the 40.5% increase in international passengers. |
| · | Commercial revenue declined 3.5%, or $0.5 million, due to lower advertising, F&B and parking revenues, which more than offset an increase in VIP lounge revenues reflecting the new agreements with airlines and Bradesco entered into during 4Q18. |
Cost of services declined 5.0% YoY, or $1.2 million, to $23.4 million, mainly reflecting lower concession fee charges resulting from a change in the passenger curve used to calculate the amortization of the intangible asset introduced in September 2018.
SG&A increased 12.3% YoY, or $0.4 million, reflecting more difficult comps as 3Q18 benefited from a bad debt recovery, coupled with increased services and fees.
Adjusted Segment EBITDA in Brazil declined 29.2% YoY, or $1.8 million, to $4.4 million in the quarter, mainly reflecting lower passenger traffic and commercial revenues. Adjusted EBITDA margin contracted 548 bps to 15.6% from 21.1% in the year-ago quarter.
Uruguay
Uruguay represented 6.4% of the Company’s consolidated 3Q19 revenues and 13.2% of its adjusted EBITDA, excluding IAS 29. CAAP operates two airports in Uruguay, General Cesáreo Berisso International Airport (“Carrasco Airport”) and Carlos A. Curbelo Airport (“Punta del Este Airport”). During 3Q19, our Uruguayan airports had approximately 0.5 million passengers.
| 3Q19 | 3Q18 | % Var. | 9M19 | 9M18 | % Var. | |
| OPERATING STATISTICS | ||||||
| Domestic Passengers (in millions) | 0.0 | 0.0 | 15.0% | 0.0 | 0.0 | -26.5% |
| International Passengers (in millions) | 0.5 | 0.5 | -2.9% | 1.7 | 1.7 | -3.8% |
| Transit Passengers (in millions) | 0.0 | 0.0 | 6.7% | 0.0 | 0.0 | -21.0% |
| Total Passengers (in millions) | 0.5 | 0.5 | -2.8% | 1.7 | 1.7 | -3.9% |
| Cargo Volume (in thousands of tons) | 6.0 | 6.2 | -1.8% | 19.0 | 19.7 | -3.6% |
| Total Aircraft Movements (in thousands) | 6.3 | 7.1 | -11.6% | 22.1 | 25.2 | -12.1% |
| FINANCIAL HIGHLIGHTS | ||||||
| Aeronautical Revenue | 14.4 | 14.9 | -3.7% | 49.3 | 48.6 | 1.4% |
| Non-aeronautical revenue | 13.6 | 12.5 | 8.5% | 40.5 | 40.7 | -0.4% |
| Commercial revenue | 11.9 | 12.4 | -3.8% | 37.9 | 40.2 | -5.5% |
| Construction service revenue | 1.6 | 0.1 | n.m. | 2.5 | 0.5 | 439.3% |
| Other revenue | 0.0 | 0.0 | 27.0% | 0.0 | 0.0 | 10.2% |
| Total Revenue | 28.0 | 27.4 | 1.9% | 89.8 | 89.3 | 0.5% |
| Total Revenue Excluding IFRIC12(1) | 26.3 | 27.3 | -3.7% | 87.3 | 88.8 | -1.7% |
| Cost of Services | 13.9 | 13.8 | 0.8% | 43.0 | 42.6 | 0.8% |
| Selling, general and administrative expenses | 3.0 | 3.0 | -0.8% | 10.6 | 10.6 | -0.4% |
| Other expenses | 0.1 | 0.1 | -18.3% | 0.2 | 0.2 | -13.3% |
| Total Costs and Expenses | 17.0 | 16.9 | 0.4% | 53.8 | 53.5 | 0.5% |
| Total Costs and Expenses Excluding IFRIC12(1) | 15.4 | 16.8 | -8.4% | 51.3 | 53.0 | -3.2% |
| Adjusted Segment EBITDA | 13.5 | 13.4 | 0.6% | 44.4 | 44.6 | -0.5% |
| Adjusted Segment EBITDA Mg | 48.1% | 48.8% | -63 | 49.4% | 49.9% | -1.0% |
| Adjusted EBITDA Margin excluding IFRIC 12 | 51.0% | 49.0% | 199 | 50.8% | 50.2% | 1.2% |
| Capex | 2.0 | 0.8 | 142.4% | 8.2 | 2.5 | 229.9% |
1 Excludes Construction Service revenue.
2 Excludes Construction Service cost.
3 Excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets, and is calculated by dividing EBITDA by total revenues less Construction Service revenue.
Passenger Traffic in Uruguay declined 2.8% YoY, mainly reflecting the cancellation of Avianca Colombia’s daily route to Bogotá, Colombia. However, Avianca announced that it will restore this route next December, with four weekly flights. Traffic also reflects lower passenger traffic from Argentina due to weak macro conditions, which was partially offset by the addition of two more frequencies to Madrid, Spain, by Iberia, during July 2019.
Revenues in 3Q19 increased 1.9%, or $0.5 million, to $28.0 million, primarily due to an increase in construction service revenue reflecting higher capex in the period. Excluding construction service revenue, revenues declined 3.7% YoY, or $1.0 million, to $26.3 million.
| · | Aeronautical revenue declined 3.7% YoY, or $0.5 million, reflecting a 2.8% decrease in passenger traffic and lower aircraft fees revenues. This was partially offset by an increase to the passenger fees implemented in August 2018. |
| · | Commercial revenue declined 3.8%, or $0.5 million, reflecting a 10.3%, or $0.3 million, decline in Duty Free revenues, related to lower passenger traffic and demand, and a decline in Parking revenues of 15.01%, or $0.1 million, due to lower demand, particularly by Argentine passengers, and the impact of the 12.8% average depreciation of the Uruguayan peso against the US dollar. This was partially offset by a 10.9%, or $0.1 million, increase in VIP lounge revenues, benefiting from new agreements signed in the prior quarter. |
| · | Construction service revenue increased $1.5 million reflecting higher capex in the period. |
Cost of services were up 0.8% YoY, or $0.1 million, to $13.9 million, driven by a $1.6 million charge in construction service cost, due to higher capex. This was partially offset by a 21.2%, or $0.7 million, YoY decline in maintenance expenses, together with a 6.4%, or $0.3 million, decline in salaries and social security contributions, reflecting the impact of the new variable compensation policy recorded in 2Q19, while last year it was recorded in 3Q18.
SG&A remained relative stable at $3.0 million. Lower services and fees was offset by an increase in Advertising due to a marketing campaign.
Adjusted Segment EBITDA in Uruguay increased 0.6%, or $0.1 million, to $13.5 million, with Adjusted Segment EBITDA margin Ex-IFRIC12 expanding 199 bps to 51.0% from 49.0% in the year-ago quarter.
During 3Q19 CAAP made capital expenditures for $2.0 million in Uruguay, primarily in relation with the implementation of SISCA (Sistema Integrado de Seguridad y Control Aeroportuario) project related to the perimeter security system.
Key Events for the Quarter
Appeal Lodged Against the Judgement by the Regional Administrative Court of Tuscany with the Council of State
On July 25, 2019 Toscana Aeroporti S.p.A. announced that it lodged an appeal with the Council of State against judgement No.793 rendered by the Regional Administrative Court of Tuscany, Section I, on May 27, 2019, that overturned the favorable Environmental Impact Assessment (VIA) decree issued on December 28, 2017, for the project outlined in 2014-2029 Master Plan for Florence Airport.
Corporación América Airports Approves Contributions in Subsidiaries
On July 18, 2019, CAAP subscribed and paid for new issuance of shares by Inframérica Participacões S.A. (that in turn has subscribed and paid for new issuance of shares by Inframerica Concessionária do Aeroporto de Brasilia S.A.) in an amount of R$ 107.5 million, or $28.7 million. (Infraero also subscribed and paid for new issuance of shares by Inframerica Concessionária do Aeroporto de Brasilia S.A., pro-rata to its stake i.e. 49% or R$ 102.9 million). Proceeds were used to pay the annual payment of concession fee.
Aeropuertos Argentina 2000 S.A. announced shareholders meeting’s results
On July 25, 2019, the Company’s subsidiary Aeropuertos Argentina 2000 S.A. held a shareholders meeting which unanimously resolved the payment of cash dividends between the shareholders classes A, B, C and D, according to their holdings, for an amount of $50.0 million, or its equivalent in Argentine pesos (which at the date of the shareholders meeting amounted to AR$ 2,143.5 million). Additionally, shareholders approved the payment of dividends on the preferred shares for the amount of AR$ 118.3 million, payable in additional preferred shares. The value was calculated based on the value of the preferred shares, as adjusted by inflation, which amounted to AR$ 5,914.0 million. The Company noted it will file an administrative claim in order to adjust the economic-financial equation of the Concession Agreement, taking into account the higher value of the preferred shares.
Aeropuertos Argentina 2000 S.A. announced two credit facility agreements
On August 9, 2019, CAAP’s subsidiary Aeropuertos Argentina 2000 S.A. entered into two credit facilities for a total principal amount of $120 million dollars: (a) the “onshore” credit facility agreement for a principal amount of US$85.0 million, and (b) the “offshore” credit facility agreement for a principal amount of US$35.0 million. The term for the credit facility agreements is thirty-six months as from the borrowing date. The principal amount under the credit facility agreements shall be repaid in nine quarterly equal and regular installments, starting with a first payment twelve months from the borrowing date. Proceeds shall be applied to the construction of infrastructure works in the airports under the AA2000 concession.
Subsequent Events
AA2000 received resolutions 2016 and 2017 from the National Airports Regulatory Organization
On October 24, CAAP announced that the National Airports Regulatory Organization approved new maximum passenger use tariffs to be charged by AA2000 effective January 1, 2020 as a result of the 2017 economic equilibrium revision. The new tariff framework implies a 4% increase in international tariffs to 51 dollars from 49 dollars today, and a 164% increase in domestic tariffs to 195 pesos from 74 pesos today. CAAP also announced it has filed a judiciary claim against the National Airports Regulatory Organization requesting that: (i) the 2016 economic equilibrium revision is declared null, and (ii) the entity carries out again, in accordance with applicable legislation, the annual review procedure of our Argentine concession for 2016.
Hyperinflation Accounting in Argentina
Following the categorization of Argentina as a country with a three-year cumulative inflation rate greater than 100%, the country is considered highly inflationary in accordance with IFRS. Consequently, starting July 1, 2018, the Company reports results of its Argentinean subsidiaries applying IFRS rule IAS 29. IAS 29 requires that results of operations in hyperinflationary economies are reported as if these economies were highly inflationary as of January 1, 2018, and thus year-to-date results should be restated adjusting for the change in general purchasing power of the local currency, using official indices, before converting the local amounts at the closing rate of the period (i.e. December 31, 2018 closing rate for 2018 results). For comparison purposes, the impact of adopting IAS 29 in Aeropuertos Argentina 2000 (“AA2000”), the Company’s largest subsidiary in Argentina which accounted for 96.0%, 98.6% and 99.2% of passenger traffic, revenues and Adjusted EBITDA, respectively, of the Argentina segment in 1Q19, is presented separately in each of the applicable sections of this earnings release, in a column denominated “IAS 29”.
3Q19 EARNINGS CONFERENCE CALL
| When: | 9:00 a.m. Eastern time, November 22, 2019 |
| Who: | Mr. Martín Eurnekian, Chief Executive Officer |
| Mr. Raúl Francos, Chief Financial Officer | |
| Ms. Gimena Albanesi, Head of Investor Relations | |
| Dial-in: | 1-888-347-6492 (U.S. domestic); 1-412-317-5258 (international) |
| Webcast: | https://services.choruscall.com/links/caap191122.html |
| Replay: | Participants can access the replay through November 29, 2019 by dialing: |
| 1-877-344-7529 (U.S. domestic) and 1-412-317-0088 (international). Replay ID: 10136474. |
Use of Non-IFRS Financial Measures
This announcement includes certain references to Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA excluding Construction Service and Adjusted EBITDA Margin excluding Construction service, as well as Net Debt:
Adjusted EBITDA is defined as income for the period before financial income, financial loss, income tax expense, depreciation and amortization.
Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenues.
Adjusted EBITDA excluding Construction Service (“Adjusted EBITDA ex-IFRIC”) is defined as income for the period before construction services revenue and cost, financial income, financial loss, income tax expense, depreciation and amortization.
Adjusted EBITDA Margin excluding Construction Service (“Adjusted EBITDA Margin ex-IFRIC12”) excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets and is calculated by dividing Adjusted EBITDA excluding Construction Service revenue and cost, by total revenues less Construction service revenue.
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA excluding Construction Service and Adjusted EBITDA Margin excluding Construction Service are not measures recognized under IFRS and should not be considered as an alternative to, or more meaningful than, consolidated net income for the year as determined in accordance with IFRS or as indicators of our operating performance from continuing operations. Accordingly, readers are cautioned not to place undue reliance on this information and should note that these measures as calculated by the Company, may differ materially from similarly titled measures reported by other companies. We believe that the presentation of Adjusted EBITDA and Adjusted EBITDA excluding Construction Service enhances an investor’s understanding of our performance and are useful for investors to assess our operating performance by excluding certain items that we believe are not representative of our core business. In addition, Adjusted EBITDA and Adjusted EBITDA excluding Construction Service are useful because they allow us to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods, capital structure or income taxes and construction services (when applicable).
Net debt is calculated by deducting “Cash and cash equivalents” from total financial debt.
Figures ex-IAS 29 result from dividing nominal Argentine pesos for the Argentine Segment, by the average foreign exchange rate of the Argentine Peso against the US Dollar in the period. Percentage variations ex-IAS 29 figures compare results as presented in the prior year quarter before IAS 29 came into effect, against ex-IAS 29 results for this quarter as described above. For comparison purposes the impact of adopting IAS 29 in Aeropuertos Argentina 2000, the Company’s largest subsidiary in Argentina, is presented separately in each of the applicable sections of this earnings release, in a column denominated “IAS 29”. The impact from “Hyperinflation Accounting in Argentina” is described in more detail page 19 of this report.
Definitions and Concepts
Commercial Revenues: CAAP derives commercial revenue principally from fees resulting from warehouse usage (which includes cargo storage, stowage and warehouse services and related international cargo services), services and retail stores, duty free shops, car parking facilities, catering, hangar services, food and beverage services, retail stores, including royalties collected from retailers’ revenue, and rent of space, advertising, fuel, airport counters, VIP lounges and fees collected from other miscellaneous sources, such as telecommunications, car rentals and passenger services.
Construction Service revenue and cost: Investments related to improvements and upgrades to be performed in connection with concession agreements are treated under the intangible asset model established by IFRIC 12. As a result, all expenditures associated with investments required by the concession agreements are treated as revenue generating activities given that they ultimately provide future benefits, and subsequent improvements and upgrades made to the concession are recognized as intangible assets based on the principles of IFRIC 12. The revenue and expense are recognized as profit or loss when the expenditures are performed. The cost for such additions and improvements to concession assets is based on actual costs incurred by CAAP in the execution of the additions or improvements, considering the investment requirements in the concession agreements. Through bidding processes, the Company contracts third parties to carry out such construction or improvement services. The amount of revenues for these services is equal to the amount of costs incurred plus a reasonable margin, which is estimated at an average of 3.0% to 5.0%.
About Corporación América Airports
Corporación América Airports acquires, develops and operates airport concessions. The Company is the largest private airport operator in the world based on the number of airports and the tenth largest based on passenger traffic. Currently, the Company operates 52 airports in 7 countries across Latin America and Europe (Argentina, Brazil, Uruguay, Peru, Ecuador, Armenia and Italy). In 2018, Corporación América Airports served 81.3 million passengers. The Company is listed on the New York Stock Exchange where it trades under the ticker “CAAP”. For more information, visit http://investors.corporacionamericaairports.com
Forward Looking Statements
Statements relating to our future plans, projections, events or prospects are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “believes,” “continue,” “could,” “potential,” “remain,” “will,” “would” or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements, including, but not limited to: delays or unexpected casualties related to construction under our investment plan and master plans, our ability to generate or obtain the requisite capital to fully develop and operate our airports, general economic, political, demographic and business conditions in the geographic markets we serve, decreases in passenger traffic, changes in the fees we may charge under our concession agreements, inflation, depreciation and devaluation of the AR$, EUR, BRL, UYU, AMD or the PEN against the U.S. dollar, the early termination, revocation or failure to renew or extend any of our concession agreements, the right of the Argentine Government to buy out the AA2000 Concession Agreement, changes in our investment commitments or our ability to meet our obligations thereunder, existing and future governmental regulations, natural disaster-related losses which may not be fully insurable, terrorism in the international markets we serve, epidemics, pandemics and other public health crises and changes in interest rates or foreign exchange rates. The Company encourages you to review the ‘Cautionary Statement’ and the ‘Risk Factor’ sections of our annual report on Form 20-F for the year ended December 31, 2018 and any of CAAP’s other applicable filings with the Securities and Exchange Commission for additional information concerning factors that could cause those differences.
Investor Relations Contact
Gimena Albanesi
Head of Investor Relations
Email: gimena.albanesi@caairports.com
Phone: +5411 4852-6411
-- Operational & Financial Tables Follow –
Operating Statistics by Segment: Traffic, Cargo and Aircraft Movement
| 3Q19 | 3Q18 | % Var. | 9M19 | 9M18 | % Var. | |
| Argentina | ||||||
| Domestic Passengers (in millions) | 7.8 | 7.0 | 10.3% | 21.2 | 18.4 | 0.2 |
| International Passengers (in millions) | 3.2 | 3.2 | 0.9% | 9.9 | 10.3 | -3.7% |
| Transit passengers (in millions) | 0.4 | 0.3 | 20.7% | 1.1 | 1.0 | 16.0% |
| Total passengers (in millions) | 11.4 | 10.5 | 7.8% | 32.2 | 29.6 | 8.9% |
| Cargo volume (in thousands of tons) | 53.5 | 52.4 | 2.1% | 164.4 | 169.5 | -3.0% |
| Aircraft movements (in thousands) | 116.1 | 115.4 | 0.6% | 338.1 | 334.8 | 1.0% |
| Italy | ||||||
| Domestic Passengers (in millions) | 0.5 | 0.5 | -3.7% | 1.3 | 1.4 | -2.7% |
| International Passengers (in millions) | 2.2 | 2.2 | -0.6% | 5.1 | 5.1 | 0.5% |
| Transit passengers (in millions) | 0.0 | 0.0 | 63.5% | 0.0 | 0.0 | 72.3% |
| Total passengers (in millions) | 2.7 | 2.7 | -1.2% | 6.4 | 6.4 | -0.1% |
| Cargo volume (in thousands of tons) | 3.1 | 2.7 | 13.8% | 9.6 | 8.4 | 14.2% |
| Aircraft movements (in thousands) | 24.9 | 24.7 | 0.7% | 61.5 | 60.7 | 1.4% |
| Brazil | ||||||
| Domestic Passengers (in millions) | 2.9 | 3.2 | -8.4% | 8.4 | 9.0 | -5.8% |
| International Passengers (in millions) | 0.1 | 0.1 | 22.1% | 0.4 | 0.4 | 6.2% |
| Transit passengers (in millions) | 1.6 | 2.0 | -19.2% | 5.1 | 5.7 | -10.6% |
| Total passengers (in millions) | 4.7 | 5.3 | -11.8% | 13.9 | 15.0 | -7.3% |
| Cargo volume (in thousands of tons) | 21.0 | 17.4 | 20.9% | 68.4 | 47.1 | 45.0% |
| Aircraft movements (in thousands) | 40.9 | 47.1 | -13.2% | 119.3 | 138.3 | -13.7% |
| Uruguay | ||||||
| Domestic Passengers (in millions) | 0.0 | 0.0 | 15.0% | 0.0 | 0.0 | -26.5% |
| International Passengers (in millions) | 0.5 | 0.5 | -2.9% | 1.7 | 1.7 | -3.8% |
| Transit passengers (in millions) | 0.0 | 0.0 | 6.7% | 0.0 | 0.0 | -21.0% |
| Total passengers (in millions) | 0.5 | 0.5 | -2.8% | 1.7 | 1.7 | -3.9% |
| Cargo volume (in thousands of tons) | 6.0 | 6.2 | -1.8% | 19.0 | 19.7 | -3.6% |
| Aircraft movements (in thousands) | 6.3 | 7.1 | -11.6% | 22.1 | 25.2 | -12.1% |
| Ecuador(1) | ||||||
| Domestic Passengers (in millions) | 0.6 | 0.6 | -9.0% | 1.8 | 1.8 | -2.8% |
| International Passengers (in millions) | 0.5 | 0.5 | 1.1% | 1.6 | 1.5 | 6.6% |
| Transit passengers (in millions) | 0.0 | 0.0 | 15.3% | 0.1 | 0.1 | 9.5% |
| Total passengers (in millions) | 1.2 | 1.2 | -4.0% | 3.4 | 3.3 | 1.5% |
| Cargo volume (in thousands of tons) | 8.2 | 9.8 | -15.9% | 29.4 | 30.3 | -3.1% |
| Aircraft movements (in thousands) | 20.0 | 20.8 | -3.7% | 61.0 | 58.8 | 3.6% |
| Armenia | ||||||
| Domestic Passengers (in millions) | 0.0 | 0.0 | - | 0.0 | 0.0 | - |
| International Passengers (in millions) | 1.1 | 0.9 | 16.6% | 2.4 | 2.2 | 12.7% |
| Transit passengers (in millions) | 0.0 | 0.0 | - | 0.0 | 0.0 | - |
| Total passengers (in millions) | 1.1 | 0.9 | 16.6% | 2.4 | 2.2 | 12.7% |
| Cargo volume (in thousands of tons) | 5.4 | 5.2 | 4.8% | 13.7 | 13.0 | 5.7% |
| Aircraft movements (in thousands) | 9.0 | 7.1 | 27.9% | 20.4 | 18.0 | 13.3% |
| Peru(2) | ||||||
| Domestic Passengers (in millions) | 1.0 | 1.0 | 4.9% | 2.6 | 2.6 | 1.3% |
| International Passengers (in millions) | 0.0 | 0.0 | 7474.1% | 0.0 | 0.0 | 1245.0% |
| Transit passengers (in millions) | 0.0 | 0.0 | - | 0.0 | 0.0 | - |
| Total passengers (in millions) | 1.0 | 1.0 | 5.5% | 2.6 | 2.6 | 1.7% |
| Cargo volume (in thousands of tons) | 1.4 | 1.2 | 13.2% | 3.8 | 3.6 | 4.7% |
| Aircraft movements (in thousands) | 8.4 | 8.8 | -4.9% | 22.9 | 24.3 | -5.5% |
(1) ECOGAL’s operational data included in this table, although its results of operations are not consolidated.
(2) AAP’s operational data included in this table, although its results of operations are not consolidated.
Foreign Exchange Rate
| Country | 3Q19 | 3Q18 | 3Q19 | 3Q18 | 2Q19 | 2Q18 | 2Q19 | 2Q18 | 1Q19 | 1Q18 | 1Q19 | 1Q18 |
| Avg | Avg | EoP | EoP | Avg | Avg | EoP | EoP | Avg | Avg | EoP | EoP | |
| Argentine Peso | 50.54 | 31.96 | 57.59 | 41.25 | 44.01 | 23.58 | 42.46 | 28.85 | 39.01 | 19.68 | 43.35 | 20.15 |
| Euro | 0.90 | 0.86 | 0.92 | 0.86 | 0.89 | 0.84 | 0.88 | 0.86 | 0.88 | 0.81 | 0.89 | 0.81 |
| Brazilian Real | 3.97 | 3.96 | 4.16 | 4.00 | 3.92 | 3.61 | 3.83 | 3.86 | 3.77 | 3.24 | 3.90 | 3.32 |
| Uruguayan Peso | 35.81 | 30.09 | 36.94 | 31.47 | 34.86 | 30.09 | 35.18 | 31.47 | 32.81 | 30.15 | 33.48 | 28.39 |
Amounts provided by units of local currency per US dollar
Aeronautical Breakdown (in US$ million)
3Q19 as reported |
3Q18 as reported |
% Var as reported |
IAS 29 3Q19 |
3Q19 ex IAS 29 |
3Q18 ex IAS 29 |
% Var ex IAS 29 | |
| Aeronautical Revenue | 184.8 | 177.1 | 4.4% | -7.5 | 192.4 | 196.0 | -1.9% |
| Passenger use fees | 144.3 | 135.4 | 6.5% | -6.5 | 150.8 | 151.9 | -0.7% |
| Aircraft fees | 31.8 | 32.2 | -1.1% | -1.0 | 32.8 | 34.7 | -5.5% |
| Other | 8.7 | 9.4 | -8.0% | 0.0 | 8.7 | 9.4 | -8.0% |
Commercial Revenue Breakdown (in US$ million)
3Q19 as reported |
3Q18 as reported |
% Var as reported |
IAS 29 3Q19 |
3Q19 ex IAS 29 |
3Q18 ex IAS 29 |
% Var ex IAS 29 | |
| Commercial revenue | 123.3 | 124.7 | -1.1% | -4.4 | 127.7 | 138.6 | -7.9% |
| Warehouse use fees | 34.9 | 39.8 | -12.4% | -2.4 | 37.2 | 47.1 | -20.9% |
| Duty free shops | 12.4 | 13.7 | -9.8% | -0.5 | 12.8 | 15.2 | -15.8% |
| Rental of space (including hangars) | 9.2 | 8.3 | 9.8% | -0.3 | 9.5 | 9.0 | 4.9% |
| Parking facilities | 7.6 | 8.3 | -8.8% | -0.3 | 7.9 | 9.2 | -14.1% |
| Fuel | 19.0 | 17.6 | 7.9% | -0.1 | 19.1 | 18.0 | 6.5% |
| Food and beverage services | 5.6 | 6.0 | -7.5% | 0.0 | 5.6 | 6.4 | -12.4% |
| Advertising | 5.5 | 4.6 | 20.3% | -0.1 | 5.6 | 4.9 | 15.6% |
| Services and retail stores | 4.2 | 4.2 | 0.7% | 0.0 | 4.3 | 4.4 | -1.8% |
| Catering | 2.5 | 2.5 | 2.1% | -0.2 | 2.7 | 2.9 | -7.6% |
| VIP lounges | 7.8 | 6.0 | 28.7% | -0.1 | 7.9 | 6.4 | 22.6% |
| Walkway services | 2.2 | 2.2 | -0.4% | -0.1 | 2.3 | 2.6 | -9.5% |
| Other | 12.5 | 11.4 | 9.6% | -0.2 | 12.7 | 12.6 | 0.9% |
Revenues by Segment (in US$ million)
| Country | 9M19 as reported |
9M18 as reported |
% Var as reported |
IAS 29 9M19 |
9M19 ex IAS 29 |
9M18 ex IAS 29 |
% Var ex IAS 29 |
| Argentina | 664.2 | 490.2 | 35.5% | -78.6 | 742.8 | 718.5 | 3.4% |
| Italy | 108.5 | 120.4 | -9.9% | - | 108.5 | 120.4 | -9.9% |
| Brazil | 86.5 | 92.1 | -6.0% | - | 86.5 | 92.1 | -6.0% |
| Uruguay | 89.8 | 89.3 | 0.5% | - | 89.8 | 89.3 | 0.5% |
| Armenia | 99.9 | 87.3 | 14.4% | - | 99.9 | 87.3 | 14.4% |
| Ecuador (1) | 79.8 | 67.3 | 18.6% | - | 79.8 | 67.3 | 18.6% |
| Unallocated | 0.6 | 0.6 | -1.0% | - | 0.6 | 0.6 | -1.0% |
| Total consolidated revenue (2) | 1129.3 | 947.2 | 19.2% | -78.6 | 1207.9 | 1175.5 | 2.8% |
1 Only includes Guayaquil Airport.
Revenue Breakdown (in US$ million)
9M19 as reported |
9M18 as reported |
% Var as reported |
IAS 29 9M19 |
9M19 ex IAS 29 |
9M18 ex IAS 29 |
% Var ex IAS 29 | |
| Aeronautical Revenue | 530.0 | 485.3 | 9.2% | -33.0 | 563.0 | 586.5 | -4.0% |
| Non-aeronautical Revenue | 599.2 | 461.9 | 29.7% | -45.6 | 644.8 | 589.0 | 9.5% |
| Commercial revenue | 348.5 | 340.2 | 2.4% | -19.2 | 367.7 | 412.6 | -10.9% |
| Construction service revenue (1) | 249.0 | 118.2 | 110.6% | -26.4 | 275.4 | 172.9 | 59.3% |
| Other revenue | 1.7 | 3.5 | -51.1% | 0.0 | 1.7 | 3.5 | -51.1% |
| Total Consolidated Revenue | 1129.2 | 947.2 | 19.2% | -78.6 | 1207.8 | 1175.5 | 2.7% |
| Total Revenue excluding Construction Service revenue (2) | 880.3 | 829.0 | 6.2% | -52.2 | 932.4 | 1002.6 | -7.0% |
1 Construction Service revenue equals the construction or upgrade costs plus a reasonable margin.
2 Excludes Construction Service revenue.
Aeronautical Breakdown (in US$ million)
9M19 as reported |
9M18 as reported |
% Var as reported |
9M19 ex IAS 29 |
IAS 29 9M19 |
9M18 ex IAS 29 |
% Var ex IAS 29 | |
| Aeronautical Revenue | 530.0 | 485.3 | 9.2% | 563.0 | -33.0 | 586.5 | -4.0% |
| Passenger use fees | 414.2 | 373.0 | 11.1% | 442.9 | -28.7 | 457.7 | -3.2% |
| Aircraft fees | 90.9 | 89.5 | 1.6% | 95.2 | -4.3 | 104.3 | -8.7% |
| Other | 24.9 | 22.9 | 9.0% | 24.9 | 0.0 | 24.4 | 2.3% |
Commercial Revenue Breakdown (in US$ million)
9M19 as reported |
9M18 as reported |
% Var as reported |
IAS 29 9M19 |
9M19 ex IAS 29 |
9M18 ex IAS 29 |
% Var ex IAS 29 | |
| Commercial revenue | 348.5 | 340.2 | 2.4% | -19.2 | 367.7 | 412.6 | -10.9% |
| Warehouse use fees | 104.4 | 106.9 | -2.3% | -10.4 | 114.8 | 143.4 | -20.0% |
| Duty free shops | 35.7 | 39.0 | -8.4% | -2.0 | 37.7 | 30.9 | 22.0% |
| Rental of space (including hangars) | 26.1 | 23.1 | 13.1% | -1.2 | 27.4 | 38.4 | -28.7% |
| Parking facilities | 20.8 | 23.9 | -12.7% | -1.2 | 22.1 | 29.3 | -24.6% |
| Fuel | 45.8 | 40.7 | 12.6% | -0.5 | 46.3 | 45.1 | 2.8% |
| Food and beverage services | 15.9 | 17.7 | -10.5% | -0.3 | 16.2 | 20.1 | -19.8% |
| Advertising | 14.9 | 13.4 | 11.5% | -0.5 | 15.5 | 17.6 | -12.2% |
| Services and retail stores | 12.3 | 12.4 | -1.2% | -0.2 | 12.5 | 15.1 | -17.3% |
| Catering | 7.6 | 7.5 | 1.5% | -0.7 | 8.3 | 7.6 | 9.7% |
| VIP lounges | 21.8 | 16.8 | 30.1% | -0.3 | 22.1 | 17.9 | 23.6% |
| Walkway services | 6.5 | 5.5 | 18.9% | -0.6 | 7.1 | 7.5 | -5.2% |
| Other | 36.5 | 33.3 | 9.7% | -1.3 | 37.8 | 39.7 | -4.8% |
| Total Expenses Breakdown (in US$ million) | |||||||
3Q19 as reported |
3Q18 as reported |
% Var as reported |
IAS 29 3Q19 |
3Q19 ex IAS 29 |
3Q18 ex IAS 29 |
% Var ex IAS 29 | |
| Cost of services | 302.8 | 227.8 | 32.9% | -2.6 | 305.4 | 242.8 | 25.8% |
| Selling, general and administrative expenses | 55.6 | 36.7 | 51.5% | -3.7 | 59.4 | 40.6 | 46.4% |
| Financial loss | 113.2 | 114.2 | -0.9% | -49.2 | 162.4 | 197.5 | -17.8% |
| Inflation adjustment | 6.3 | 10.0 | -36.6% | 6.3 | 0.1 | 0.9 | -93.0% |
| Other expenses | 0.8 | 0.8 | -8.2% | 0.0 | 0.7 | 1.0 | -26.2% |
| Income tax expense | -17.4 | 0.8 | -2271.6% | 26.9 | -44.3 | -10.7 | 313.4% |
| Total expenses | 461.3 | 390.3 | 18.2% | -22.3 | 483.6 | 472.0 | 2.5% |
| Cost of Services (in US$ million) | |||||||
3Q19 as reported |
3Q18 as reported |
% Var as reported |
IAS 29 3Q19 |
3Q19 ex IAS 29 |
3Q18 ex IAS 29 |
% Var ex IAS 29 | |
| Cost of Services | 302.8 | 227.8 | 32.9% | -2.6 | 305.4 | 242.8 | 25.8% |
| Salaries and social security contributions | 45.8 | 43.1 | 6.5% | -1.7 | 47.5 | 47.2 | 0.8% |
| Concession fees | 41.4 | 41.5 | -0.2% | -1.8 | 43.3 | 46.4 | -6.7% |
| Construction service cost | 108.0 | 45.2 | 139.0% | -9.0 | 117.0 | 53.2 | 119.9% |
| Maintenance expenses | 29.8 | 27.5 | 8.6% | -2.3 | 32.2 | 32.0 | 0.4% |
| Amortization and depreciation | 36.1 | 32.7 | 10.2% | 12.4 | 23.7 | 24.5 | -3.6% |
| Services and fees | 16.9 | 16.0 | 5.9% | 0.2 | 16.7 | 17.0 | -2.0% |
| Cost of fuel | 13.9 | 12.5 | 11.5% | 0.0 | 13.9 | 12.5 | 11.5% |
| Taxes | 4.0 | 4.3 | -6.6% | -0.1 | 4.1 | 4.5 | -8.4% |
| Office expenses | 4.0 | 2.0 | 96.8% | -0.3 | 4.3 | 2.5 | 69.7% |
| Provision for maintenance cost | 0.3 | 1.0 | -69.2% | 0.0 | 0.3 | 1.0 | -69.2% |
| Others | 2.4 | 2.1 | 17.6% | 0.0 | 2.4 | 2.0 | 21.6% |
Selling, General and Administrative Expenses (in US$ million)
3Q19 as reported |
3Q18 as reported |
% Var as reported |
IAS 29 3Q19 |
3Q19 ex IAS 29 |
3Q18 ex IAS 29 |
% Var ex IAS 29 | |
| SG&A | 55.6 | 36.7 | 51.5% | -3.7 | 59.4 | 40.6 | 46.4% |
| Taxes | 9.5 | 10.0 | -4.7% | -0.7 | 10.2 | 12.0 | -14.7% |
| Salaries and social security contributions | 7.1 | 7.1 | -1.1% | -0.2 | 7.3 | 7.8 | -6.4% |
| Services and fees | 9.8 | 10.0 | -1.8% | -0.1 | 9.9 | 10.3 | -3.8% |
| Office expenses | 0.8 | 2.4 | -65.4% | -0.1 | 0.9 | 2.9 | -68.0% |
| Amortization and depreciation | 2.2 | 2.2 | 1.1% | 0.2 | 2.0 | 2.1 | -4.9% |
| Maintenance expenses | 0.5 | 0.7 | -30.1% | 0.0 | 0.5 | 0.8 | -37.0% |
| Advertising | 1.1 | 0.7 | 52.5% | -0.1 | 1.2 | 0.9 | 29.3% |
| Insurances | 0.4 | 0.4 | 1.3% | 0.0 | 0.4 | 0.4 | 0.2% |
| Charter services | 0.2 | 0.2 | 0.0% | 0.0 | 0.2 | 0.2 | 0.0% |
| Bad debts recovery | -0.2 | -2.6 | -93.6% | 0.0 | -0.2 | -2.6 | -93.6% |
| Bad debts | 22.2 | 3.4 | 553.4% | -2.8 | 25.0 | 3.7 | 577.7% |
| Others | 2.0 | 2.2 | -10.9% | 0.0 | 2.0 | 2.2 | -11.0% |
Expenses by Segment (in US$ million)
| Country | 3Q19 as reported |
3Q18 as reported |
% Var as reported |
IAS 29 3Q19 |
3Q19 ex IAS 29 |
3Q18 ex IAS 29 |
% Var ex IAS 29 |
| Argentina | 225.5 | 138.1 | 63.3% | -6.3 | 231.8 | 157.1 | 47.5% |
| Italy | 30.6 | 33.8 | -9.3% | - | 30.6 | 33.8 | -9.3% |
| Brazil | 27.1 | 27.7 | -2.5% | - | 27.1 | 27.8 | -2.8% |
| Uruguay | 17.0 | 16.9 | 0.4% | - | 17.0 | 16.9 | 0.4% |
| Armenia | 27.2 | 24.4 | 11.7% | - | 27.2 | 24.4 | 11.7% |
| Ecuador | 25.0 | 17.7 | 41.2% | - | 25.0 | 17.7 | 41.2% |
| Unallocated | 6.7 | 6.6 | 1.5% | - | 6.7 | 6.6 | 1.5% |
| Total consolidated expenses (1) (2) | 359.1 | 265.3 | 35.4% | -6.3 | 365.5 | 284.3 | 28.5% |
| (1) | Excludes income tax and financial loss |
| (2) | We account for the results of operations of ECOGAL and AAP using the equity method |
Costs and Expenses (in US$ million)
9M19 as reported |
9M18 as reported |
% Var as reported |
IAS 29 9M19 |
9M19 ex IAS 29 |
9M18 ex IAS 29 |
% Var ex IAS 29 | |
| Cost of Services | 809.0 | 630.1 | 28.4% | -16.9 | 825.9 | 747.4 | 10.5% |
| Salaries and social security contributions | 137.1 | 127.7 | 7.3% | -7.1 | 144.2 | 150.3 | -4.1% |
| Concession fees | 118.7 | 115.8 | 2.6% | -7.9 | 126.7 | 141.4 | -10.4% |
| Construction service cost | 247.4 | 116.9 | 111.7% | -26.4 | 273.8 | 171.5 | 59.7% |
| Maintenance expenses | 86.1 | 80.0 | 7.6% | -7.0 | 93.1 | 104.0 | -10.5% |
| Amortization and depreciation | 107.7 | 92.3 | 16.8% | 34.9 | 72.9 | 74.4 | -2.0% |
| Other | 112.0 | 97.5 | 14.9% | -3.3 | 115.3 | 105.7 | 9.1% |
| Cost of Services Excluding Construction Service cost | 561.6 | 513.2 | 9.4% | 9.5 | 552.1 | 575.9 | -4.1% |
| Selling, general and administrative expenses | 127.3 | 108.1 | 17.8% | -7.2 | 134.5 | 127.4 | 5.6% |
| Other expenses | 1.6 | 1.7 | -6.6% | 0.0 | 1.6 | 2.0 | -19.6% |
| Total Costs and Expenses | 937.9 | 739.9 | 26.8% | -24.1 | 962.0 | 876.9 | 9.7% |
| Total Costs and Expenses Excluding Construction Service cost | 690.5 | 623.0 | 10.8% | 2.3 | 688.3 | 705.4 | -2.4% |
Total Expenses Breakdown (in US$ million)
9M19 as reported |
9M18 as reported |
% Var as reported |
IAS 29 9M19 |
9M19 ex IAS 29 |
9M18 ex IAS 29 |
% Var ex IAS 29 | |
| Cost of services | 809.0 | 630.1 | 28.4% | -16.9 | 825.9 | 747.4 | 10.5% |
| Selling, general and administrative expenses | 127.3 | 108.1 | 17.8% | -7.2 | 134.5 | 127.4 | 5.6% |
| Financial loss | 192.8 | 310.8 | -37.9% | -119.2 | 312.0 | 482.1 | -35.3% |
| Inflation adjustment | 19.9 | 21.4 | -7.2% | 20.0 | -0.1 | 0.9 | -109.6% |
| Other expenses | 1.6 | 1.7 | -6.6% | 0.0 | 1.6 | 2.0 | -19.6% |
| Income tax expense | -10.2 | -5.7 | 81.0% | 36.4 | -46.7 | 8.0 | -680.1% |
| Total expenses | 1140.4 | 1066.4 | 6.9% | -86.9 | 1227.3 | 1367.9 | -10.3% |
| Cost of Services (in US$ million) | |||||||
9M19 as reported |
9M18 as reported |
% Var as reported |
IAS 29 9M19 |
9M19 ex IAS 29 |
9M18 ex IAS 29 |
% Var ex IAS 29 | |
| Cost of Services | 809.0 | 630.1 | 28.4% | -16.9 | 825.9 | 747.4 | 10.5% |
| Salaries and social security contributions | 137.1 | 127.7 | 7.3% | -7.1 | 144.2 | 150.3 | -4.1% |
| Concession fees | 118.7 | 115.8 | 2.6% | -7.9 | 126.7 | 141.4 | -10.4% |
| Construction service cost | 247.4 | 116.9 | 111.7% | -26.4 | 273.8 | 171.5 | 59.7% |
| Maintenance expenses | 86.1 | 80.0 | 7.6% | -7.0 | 93.1 | 104.0 | -10.5% |
| Amortization and depreciation | 107.7 | 92.3 | 16.8% | 34.9 | 72.9 | 74.4 | -2.0% |
| Services and fees | 47.8 | 40.6 | 17.8% | -1.7 | 49.5 | 45.2 | 9.6% |
| Cost of fuel | 32.0 | 27.7 | 15.3% | 0.0 | 32.0 | 27.8 | 14.9% |
| Taxes | 12.5 | 12.6 | -0.9% | -0.3 | 12.8 | 13.3 | -4.1% |
| Office expenses | 10.2 | 7.5 | 35.6% | -1.2 | 11.4 | 10.0 | 13.6% |
| Provision for maintenance cost | 1.4 | 1.8 | -21.8% | 0.0 | 1.4 | 2.1 | -32.8% |
| Others | 8.1 | 7.2 | 13.1% | -0.1 | 8.2 | 7.3 | 13.0% |
Selling, General and Administrative Expenses (in US$ million)
9M19 as reported |
9M18 as reported |
% Var as reported |
IAS 29 9M19 |
9M19 ex IAS 29 |
9M18 ex IAS 29 |
% Var ex IAS 29 | |
| SG&A | 127.3 | 108.1 | 17.8% | -7.2 | 134.5 | 126.0 | 6.8% |
| Taxes | 27.8 | 28.3 | -1.8% | -3.0 | 30.9 | 38.8 | -20.4% |
| Salaries and social security contributions | 21.2 | 21.9 | -3.2% | -1.0 | 22.1 | 25.4 | -13.1% |
| Services and fees | 27.8 | 29.1 | -4.5% | -0.3 | 28.1 | 30.0 | -6.5% |
| Office expenses | 3.3 | 5.9 | -44.3% | -0.3 | 3.6 | 8.0 | -54.9% |
| Amortization and depreciation | 7.4 | 6.4 | 15.4% | 0.8 | 6.6 | 6.2 | 5.8% |
| Maintenance expenses | 1.2 | 1.9 | -36.8% | 0.0 | 1.2 | 2.2 | -46.5% |
| Advertising | 1.7 | 2.1 | -16.4% | -0.1 | 1.9 | 2.2 | -16.1% |
| 0.0 | 0.0 | - | 0.0 | 0.0 | 0.0 | -100.0% | |
| Insurances | 1.3 | 1.6 | -20.3% | 0.0 | 1.3 | 1.6 | -20.1% |
| Charter services | 0.6 | 0.6 | 0.0% | 0.0 | 0.6 | 0.6 | 0.0% |
| Bad debts recovery | -0.6 | -2.6 | -78.5% | 0.0 | -0.6 | -2.2 | -74.0% |
| Bad debts | 28.6 | 5.0 | 474.0% | -3.3 | 31.9 | 5.0 | 537.3% |
| Others | 6.9 | 7.9 | -12.5% | 0.0 | 6.9 | 7.9 | -12.5% |
|
Expenses by Segment (in US$ million) | |||||||
| Country | 9M19 as reported |
9M18 as reported |
% Var as reported |
IAS 29 9M19 |
9M19 ex IAS 29 |
9M18 ex IAS 29 |
% Var ex IAS 29 |
| Argentina | 560.7 | 366.9 | 52.8% | -24.1 | 584.8 | 503.8 | 16.1% |
| Italy | 86.6 | 96.1 | -9.9% | - | 86.6 | 96.1 | -9.9% |
| Brazil | 85.3 | 91.8 | -7.1% | - | 85.3 | 91.8 | -7.1% |
| Uruguay | 53.8 | 53.5 | 0.5% | - | 53.8 | 53.5 | 0.5% |
| Armenia | 70.6 | 58.9 | 19.7% | - | 70.6 | 58.9 | 19.7% |
| Ecuador | 61.8 | 50.0 | 23.5% | - | 61.8 | 50.0 | 23.5% |
| Unallocated | 19.3 | 22.6 | -14.8% | - | 19.3 | 22.6 | -14.8% |
| Total consolidated expenses (1) (2) | 937.9 | 739.9 | 26.8% | -24.1 | 962.1 | 876.8 | 9.7% |
| (1) | Excludes income tax and financial loss |
| (2) | We account for the results of operations of ECOGAL and AAP using the equity method |
Adjusted EBITDA by Segment (in US$ million)
9M19 as reported |
9M18 as reported |
% Var as reported |
IAS 29 9M19 |
9M19 ex IAS 29 |
9M18 ex IAS 29 |
% Var ex IAS 29 | |
| Argentina | 176.1 | 173.5 | 1.5% | -20.1 | 196.2 | 251.0 | -21.8% |
| Italy | 31.2 | 33.1 | -5.8% | - | 31.2 | 33.1 | -5.8% |
| Brazil | 10.5 | 13.1 | -19.4% | - | 10.5 | 13.1 | -19.4% |
| Uruguay | 44.4 | 44.6 | -0.5% | - | 44.4 | 44.6 | -0.5% |
| Armenia | 39.4 | 37.5 | 5.1% | - | 39.4 | 37.5 | 5.1% |
| Ecuador | 19.4 | 20.1 | -3.7% | - | 19.4 | 20.1 | -3.7% |
| Unallocated | -3.0 | -4.5 | -32.4% | - | -3.0 | -4.5 | -32.4% |
| Perú | -0.9 | -0.1 | 1097.3% | - | -0.9 | -0.1 | 1097.3% |
| Total segment EBITDA | 317.1 | 317.3 | -0.1% | -20.1 | 337.1 | 394.8 | -14.6% |
Adjusted EBITDA Reconciliation to Income from Continuing Operations (in US$ million)
9M19 as reported |
9M18 as reported |
% Var as reported |
IAS 29 9M19 |
9M19 ex IAS 29 |
9M18 ex IAS 29 |
% Var ex IAS 29 | |
| Income from Continuing Operations | 32.5 | -50.8 | -164.0% | -9.9 | 42.4 | -42.5 | -199.7% |
| Financial Income | -33.1 | -57.2 | -42.1% | 16.9 | -50.0 | -107.1 | -53.3% |
| Financial Loss | 192.8 | 310.8 | -37.9% | -119.2 | 312.0 | 482.2 | -35.3% |
| Inflation adjustment | 19.9 | 21.4 | -7.2% | 20.0 | -0.1 | 0.9 | -109.6% |
| Income Tax Expense | -10.2 | -5.7 | 81.0% | 36.4 | -46.7 | -19.3 | 142.2% |
| Amortization and Depreciation | 115.1 | 98.7 | 16.7% | 35.7 | 79.4 | 80.7 | -1.5% |
| Adjusted EBITDA | 317.1 | 317.3 | -0.1% | -20.1 | 337.1 | 394.8 | -14.6% |
| Adjusted EBITDA Margin | 28.1% | 33.5% | -542 | 0.0% | 27.9% | 33.6% | -568 |
| Adjusted EBITDA excluding Construction Service | 315.4 | 315.9 | -0.1% | -20.1 | 335.5 | 393.4 | -14.7% |
| Adjusted EBITDA Margin excluding Construction Service | 35.8% | 38.1% | -227 | 0.0% | 36.0% | 39.2% | -322 |
9M19 as reported |
9M18 as reported |
% Var as reported |
IAS 29 9M19 |
9M19 ex IAS 29 |
9M18 ex IAS 29 |
% Var ex IAS 29 | |
| Financial Income | 33.1 | 57.2 | -42.1% | -16.9 | 50.0 | 107.1 | -53.3% |
| Interest income | 22.2 | 15.7 | 41.0% | -2.7 | 24.9 | 20.0 | 24.4% |
| Foreign exchange income | 7.3 | 39.1 | -81.3% | -14.1 | 21.5 | 84.5 | -74.6% |
| Other | 3.6 | 2.3 | 54.3% | 0.0 | 3.6 | 2.6 | 36.6% |
| Financial Loss | -192.8 | -310.8 | -37.9% | 119.2 | -312.0 | -482.1 | -35.3% |
| Interest Expenses | -66.9 | -68.7 | -2.7% | 3.0 | -69.8 | -67.1 | 4.1% |
| Foreign exchange transaction expenses | -60.6 | -163.7 | -63.0% | 116.2 | -176.8 | -336.5 | -47.5% |
| Leases financial cost | -0.4 | 0.0 | - | 0.0 | -0.4 | 0.0 | - |
| Changes in liability for concessions | -62.6 | -69.0 | -9.3% | 0.0 | -62.6 | -69.0 | -9.3% |
| Other expenses | -2.4 | -9.3 | -74.6% | 0.0 | -2.4 | -9.5 | -75.2% |
| Inflation adjustment | -19.9 | -21.4 | -7.2% | -20.0 | 0.1 | -0.9 | -109.6% |
| Inflation adjustment | -19.9 | -21.4 | -7.2% | -20.0 | 0.1 | -0.9 | -109.6% |
| Financial Results, Net | -179.6 | -275.1 | -34.7% | 82.3 | -261.9 | -375.9 | -30.3% |
|
% Ownership by Concession |
||
| Aeropuertos Argentina 2000 | Argentina | 81.3% |
| Neuquén | Argentina | 74.1% |
| Bahía Blanca | Argentina | 81.1% |
| Toscana Aeroporti (Florence and Pisa airports) | Italy | 46.7% |
| ICAB (Brasilia Airport) | Brasil | 51.0% |
| ICASGA (Natal Airport) | Brasil | 99.9% |
| Puerta del Sur (Carrasco Airport) | Uruguay | 100.0% |
| CAISA (Punta del Este Airport) | Uruguay | 100.0% |
| AIA (Armenian airports) | Armenia | 100.0% |
| TAGSA (Guayaquil Airport) | Ecuador | 50.0% |
| ECOGAL (Galápagos Airport) | Ecuador | 99.9% |
| Aeropuertos Andinos del Peru | Peru | 50.0% |
Selected Income Statement Data (in US$ million)
| 3Q19 | 3Q18 | % Var. | 9M19 | 9M18 | % Var. | |
| Argentina | ||||||
| Total Revenue | 244.7 | 182.6 | 34.0% | 664.2 | 490.2 | 35.5% |
| Total Revenue Excluding IFRIC12(1) | 149.5 | 143.8 | 4.0% | 440.9 | 388.1 | 13.6% |
| Operating Income | 22.9 | 48.0 | -52.4% | 114.3 | 132.9 | -14.0% |
| Adjusted Segment EBITDA | 43.6 | 64.6 | -32.5% | 176.1 | 173.5 | 1.5% |
| Adjusted Segment EBITDA Mg | 17.8% | 35.4% | -1757 | 26.5% | 35.4% | -887 |
| Adjusted EBITDA Margin excluding IFRIC 12(1) | 29.1% | 44.9% | -1579 | 39.9% | 44.7% | -476 |
| Italy | ||||||
| Total Revenue | 42.6 | 46.7 | -8.7% | 108.5 | 120.4 | -9.9% |
| Total Revenue Excluding IFRIC12(1) | 41.2 | 42.3 | -2.5% | 103.1 | 109.3 | -5.6% |
| Operating Income | 12.0 | 12.9 | -7.1% | 21.9 | 24.3 | -9.6% |
| Adjusted Segment EBITDA | 15.1 | 15.8 | -4.5% | 31.2 | 33.1 | -5.8% |
| Adjusted Segment EBITDA Mg | 35.4% | 33.9% | 155 | 28.8% | 27.5% | 124 |
| Adjusted EBITDA Margin excluding IFRIC 12(1) | 36.5% | 36.7% | -22 | 29.2% | 29.3% | -13 |
| Brazil | ||||||
| Total Revenue | 28.4 | 29.7 | -4.3% | 86.5 | 92.1 | -6.0% |
| Operating Income | 1.5 | 2.7 | -45.1% | 1.6 | 1.0 | 63.5% |
| Adjusted segment EBITDA | 4.4 | 6.3 | -29.2% | 10.5 | 13.0 | -18.8% |
| Adjusted Segment EBITDA Mg | 15.6% | 21.1% | -548 | 12.2% | 14.1% | -191 |
| Uruguay | ||||||
| Total Revenue | 28.0 | 27.4 | 1.9% | 89.8 | 89.3 | 0.5% |
| Total Revenue Excluding IFRIC12(1) | 26.3 | 27.3 | -3.7% | 87.3 | 88.8 | -1.7% |
| Operating Income | 10.4 | 10.5 | -1.0% | 34.3 | 34.1 | 0.5% |
| Adjusted Segment EBITDA | 13.5 | 13.4 | 0.6% | 44.4 | 44.6 | -0.5% |
| Adjusted Segment EBITDA Mg | 48.1% | 48.8% | -63 | 49.4% | 49.9% | -50 |
| Adjusted EBITDA Margin excluding IFRIC 12(1) | 51.0% | 49.0% | 199 | 50.8% | 50.2% | 59 |
| 3Q19 | 3Q18 | % Var. | 9M19 | 9M18 | % Var. | |
| Ecuador | ||||||
| Total Revenue | 31.3 | 23.7 | 31.6% | 79.8 | 67.3 | 18.6% |
| Total Revenue Excluding IFRIC12(1) | 24.0 | 23.7 | 1.1% | 71.2 | 67.3 | 5.8% |
| Operating Income | 5.5 | 6.0 | -8.6% | 15.9 | 15.3 | 4.1% |
| Adjusted Segment EBITDA | 6.7 | 6.4 | 4.3% | 19.4 | 20.1 | -3.7% |
| Adjusted Segment EBITDA Mg | 21.4% | 27.1% | -562 | 24.3% | 29.9% | -562 |
| Adjusted EBITDA Margin excluding IFRIC 12(1) | 27.9% | 27.1% | 85 | 27.2% | 29.9% | -269 |
| Armenia | ||||||
| Total Revenue | 41.9 | 37.6 | 11.5% | 99.9 | 87.3 | 14.4% |
| Total Revenue Excluding IFRIC12(1) | 39.2 | 35.3 | 11.0% | 90.6 | 82.8 | 9.4% |
| Operating Income | 14.7 | 13.2 | 11.1% | 29.4 | 28.5 | 3.2% |
| Adjusted Segment EBITDA | 18.2 | 16.2 | 12.4% | 39.4 | 37.5 | 5.1% |
| Adjusted Segment EBITDA Mg | 43.5% | 43.2% | 32 | 39.4% | 42.9% | -347 |
| Adjusted EBITDA Margin excluding IFRIC 12(1) | 46.4% | 45.8% | 56 | 43.1% | 45.1% | -191 |
| Unallocated | ||||||
| Total revenue | 0.2 | 0.2 | -17.7% | 0.6 | 0.6 | -1.0% |
| Operating income | -5.2 | -6.4 | -18.2% | -14.7 | -18.1 | -18.8% |
| Adjusted segment EBITDA | -1.5 | -0.7 | 101.4% | -3.0 | -4.5 | -32.4% |
| Adjusted Segment EBITDA Mg | N/A | N/A | N/A | N/A | N/A | N/A |
1 Excludes Construction Service revenue.
2 Excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets.
3 Starting in 3Q18, reported numbers are presented applying Hyperinflation accounting for our Argentinean subsidiaries, in accordance with IAS 29, as explained above. Please refer to Review of Segments – Argentina to see the effect of this rule in our Argentinean subsidiaries.
Operating Statistics by Airport: Traffic, Cargo and Aircraft Movements
| Domestic
Passenger Traffic (in thousands) |
International
Passenger Traffic (in thousands) |
Transit
Passengers (in thousands) |
Total
Passenger Traffic (in thousands) |
Cargo
volume (in tons) |
Aircraft movements | |||||||||||||
| 3Q'19 | 3Q'18 | % Var. | 3Q'19 | 3Q'18 | % Var. | 3Q'19 | 3Q'18 | % Var. | 3Q'19 | 3Q'18 | % Var. | 3Q'19 | 3Q'18 | % Var. | 3Q'19 | 3Q'18 | % Var. | |
| Argentina | ||||||||||||||||||
| Aeroparque (1) | 2,926 | 2,903 | 1% | 54 | 405 | -87% | 233 | 224 | 4% | 3,213 | 3,532 | -9% | 364 | 478 | -24% | 28,314 | 33,201 | -15% |
| Bariloche | 648 | 564 | 15% | 32 | 26 | 22% | 1 | 1 | 47% | 681 | 591 | 15% | 47 | 119 | -61% | 4,964 | 4,874 | 2% |
| Catamarca | 16 | 17 | -6% | 0 | 0 | -100% | 0 | 1 | -96% | 16 | 18 | -9% | 6 | 33 | -83% | 478 | 561 | -15% |
| C. Rivadavia | 161 | 188 | -14% | 0 | 0 | - | 2 | 1 | 143% | 162 | 188 | -14% | 259 | 293 | -12% | 2,412 | 2,640 | -9% |
| Córdoba | 670 | 592 | 13% | 165 | 217 | -24% | 48 | 46 | 6% | 884 | 854 | 3% | 684 | 466 | 47% | 7,856 | 8,532 | -8% |
| El Palomar (2) | 456 | 233 | 96% | 63 | 0 | n.m. | 0 | 0 | - | 518 | 233 | 122% | 0 | 0 | - | 3,373 | 1,935 | 74% |
| Esquel | 15 | 13 | 18% | 0 | 0 | - | 0 | 0 | -19% | 15 | 13 | 17% | 0 | 0 | - | 228 | 205 | 11% |
| Ezeiza (1) | 230 | 155 | 48% | 2,737 | 2,313 | 18% | 78 | 39 | 97% | 3,046 | 2,508 | 21% | 50,498 | 49,045 | 3% | 21,888 | 19,199 | 14% |
| Formosa | 30 | 33 | -10% | 0 | 0 | -100% | 0 | 0 | - | 30 | 33 | -10% | 37 | 47 | -20% | 596 | 552 | 8% |
| General Pico | 1 | 1 | -44% | 0 | 0 | - | 0 | 0 | - | 1 | 1 | -43% | 0 | 0 | - | 998 | 1,434 | -30% |
| Iguazú | 413 | 318 | 30% | 1 | 0 | 2583% | 4 | 0 | 50788% | 418 | 318 | 31% | 0 | 0 | - | 3,340 | 2,709 | 23% |
| Jujuy | 104 | 101 | 4% | 0 | 0 | 444% | 2 | 4 | -63% | 106 | 105 | 1% | 30 | 28 | 7% | 1,250 | 1,268 | -1% |
| La Rioja | 17 | 19 | -9% | 0 | 0 | -100% | 0 | 1 | -100% | 17 | 19 | -12% | 25 | 36 | -32% | 435 | 558 | -22% |
| Malargüe | 0 | 1 | -32% | 0 | 0 | -33% | 0 | 0 | -100% | 0 | 1 | -32% | 0 | 0 | - | 104 | 105 | -1% |
| Mar del Plata | 75 | 99 | -24% | 0 | 0 | -56% | 4 | 3 | 27% | 79 | 102 | -23% | 25 | 37 | -34% | 1,716 | 2,044 | -16% |
| Mendoza | 465 | 374 | 24% | 112 | 152 | -26% | 5 | 5 | -14% | 581 | 531 | 9% | 156 | 366 | -57% | 5,685 | 5,502 | 3% |
| Paraná | 17 | 17 | 0% | 0 | 0 | 457% | 0 | 0 | -82% | 17 | 17 | 0% | 0 | 0 | - | 682 | 604 | 13% |
| Posadas | 88 | 86 | 2% | 0 | 0 | -2% | 0 | 0 | -100% | 88 | 87 | 2% | 88 | 87 | 2% | 1,180 | 1,126 | 5% |
| Pto Madryn | 22 | 28 | -23% | 0 | 0 | - | 0 | 0 | -68% | 22 | 29 | -23% | 0 | 0 | - | 227 | 195 | 16% |
| Reconquista | 1 | 4 | -83% | 0 | 0 | -33% | 0 | 0 | 200% | 1 | 4 | -83% | 0 | 0 | - | 916 | 796 | 15% |
| Resistencia | 77 | 85 | -10% | 0 | 0 | -71% | 10 | 1 | 1763% | 87 | 86 | 1% | 107 | 129 | -17% | 1,122 | 1,126 | 0% |
| Río Cuarto | 11 | 10 | 4% | 0 | 0 | - | 0 | 0 | -100% | 11 | 10 | 3% | 8 | 15 | -46% | 215 | 220 | -2% |
| Río Gallegos | 63 | 61 | 3% | 0 | 0 | 66% | 2 | 1 | 78% | 65 | 63 | 4% | 118 | 130 | -9% | 826 | 800 | 3% |
| Río Grande | 37 | 37 | 0% | 0 | 0 | -67% | 0 | 0 | 14100% | 38 | 37 | 1% | 86 | 51 | 67% | 650 | 643 | 1% |
| Salta | 389 | 311 | 25% | 14 | 17 | -17% | 13 | 3 | 422% | 417 | 330 | 26% | 284 | 332 | -14% | 3,801 | 3,015 | 26% |
| San Fernando | 3 | 6 | -47% | 2 | 2 | 11% | 0 | 0 | - | 5 | 8 | -32% | 0 | 0 | - | 11,140 | 9,274 | 20% |
| Domestic
Passenger Traffic (in thousands) |
International
Passenger Traffic (in thousands) |
Transit
Passengers (in thousands) |
Total
Passenger Traffic (in thousands) |
Cargo
volume (in tons) |
Aircraft movements | |||||||||||||
| 3Q'19 | 3Q'18 | % Var. | 3Q'19 | 3Q'18 | % Var. | 3Q'19 | 3Q'18 | % Var. | 3Q'19 | 3Q'18 | % Var. | 3Q'19 | 3Q'18 | % Var. | 3Q'19 | 3Q'18 | % Var. | |
| San Juan | 51 | 49 | 3% | 0 | 0 | -100% | 0 | 0 | -100% | 51 | 49 | 3% | 0 | 0 | - | 524 | 618 | -15% |
| San Luis | 19 | 24 | -22% | 0 | 0 | - | 0 | 0 | - | 19 | 24 | -22% | 48 | 66 | -26% | 294 | 416 | -29% |
| San Rafael | 16 | 15 | 10% | 0 | 0 | - | 0 | 0 | - | 16 | 15 | 10% | 1 | 0 | - | 988 | 1,167 | -15% |
| Santa Rosa | 13 | 13 | 2% | 0 | 0 | - | 0 | 0 | -76% | 13 | 13 | 1% | 1 | 2 | -48% | 642 | 736 | -13% |
| Santiago del Estero | 39 | 43 | -10% | 0 | 0 | - | 0 | 0 | - | 39 | 43 | -10% | 37 | 50 | -25% | 712 | 754 | -6% |
| Tucumán | 256 | 234 | 10% | 12 | 29 | -58% | 4 | 9 | -57% | 272 | 272 | 0% | 278 | 268 | 4% | 2,516 | 2,656 | -5% |
| Viedma | 11 | 10 | 8% | 0 | 0 | - | 0 | 0 | - | 11 | 10 | 8% | 0 | 0 | - | 179 | 272 | -34% |
| Villa Mercedes | 0 | 0 | 193% | 0 | 0 | - | 0 | 0 | -100% | 0 | 0 | 189% | 0 | 0 | - | 718 | 294 | 144% |
| Termas de Río Hondo | 5 | 8 | -41% | 0 | 0 | - | 0 | 0 | - | 5 | 8 | -41% | 3 | 1 | 158% | 278 | 500 | -44% |
| Bahía Blanca | 82 | 106 | -23% | 0 | 0 | - | 6 | 7 | -9% | 88 | 113 | -22% | 82 | 88 | -6% | 1,184 | 1,497 | -21% |
| Neuquén | 329 | 273 | 20% | 8 | 9 | -12% | 5 | 0 | 1155% | 342 | 283 | 21% | 261 | 256 | 2% | 3,706 | 3,392 | 9% |
| Total Argentina | 7,756 | 7,031 | 10% | 3,201 | 3,171 | 1% | 417 | 345 | 21% | 11,373 | 10,547 | 8% | 53,535 | 52,423 | 2% | 116,137 | 115,420 | 1% |
| Italy | ||||||||||||||||||
| Pisa | 381 | 400 | -5% | 1,417 | 1,455 | -3% | 3 | 2 | 63% | 1,801 | 1,857 | -3% | 3,024 | 2,625 | 15% | 14,298 | 14,578 | -2% |
| Florence | 102 | 102 | 0% | 750 | 726 | 3% | 0 | 0 | - | 851 | 827 | 3% | 34 | 63 | -46% | 10,620 | 10,155 | 5% |
| Total Italy | 483 | 501 | -4% | 2,167 | 2,181 | -1% | 3 | 2 | 63% | 2,653 | 2,684 | -1% | 3,058 | 2,688 | 14% | 24,918 | 24,733 | 1% |
| Brazil | ||||||||||||||||||
| Brasilia | 2,366 | 2,585 | -8% | 122 | 98 | 24% | 1,640 | 2,030 | -19% | 4,128 | 4,713 | -12% | 18,322 | 14,087 | 30% | 36,441 | 42,335 | -14% |
| Natal | 545 | 592 | -8% | 21 | 19 | 12% | 0 | 0 | - | 566 | 611 | -7% | 2,661 | 3,267 | -19% | 4,473 | 4,813 | -7% |
| Total Brazil | 2,911 | 3,177 | -8% | 143 | 117 | 22% | 1,640 | 2,030 | -19% | 4,693 | 5,324 | -12% | 20,982 | 17,354 | 21% | 40,914 | 47,148 | -13% |
| Uruguay | ||||||||||||||||||
| Carrasco | 0 | 0 | 39% | 500 | 517 | -3% | 5 | 5 | 7% | 505 | 522 | -3% | 6,048 | 6,159 | -2% | 5,440 | 6,290 | -14% |
| Punta del Este | 0 | 0 | -56% | 17 | 15 | 12% | 0 | 0 | - | 17 | 16 | 12% | 0 | 0 | - | 834 | 808 | 3% |
| Total Uruguay | 0 | 0 | 15% | 517 | 533 | -3% | 5 | 5 | 7% | 523 | 538 | -3% | 6,048 | 6,159 | -2% | 6,274 | 7,098 | -12% |
| Domestic
Passenger Traffic (in thousands) |
International
Passenger Traffic (in thousands) |
Transit
Passengers (in thousands) |
Total
Passenger Traffic (in thousands) |
Cargo
volume (in tons) |
Aircraft movements | |||||||||||||
| 3Q'19 | 3Q'18 | % Var. | 3Q'19 | 3Q'18 | % Var. | 3Q'19 | 3Q'18 | % Var. | 3Q'19 | 3Q'18 | % Var. | 3Q'19 | 3Q'18 | % Var. | 3Q'19 | 3Q'18 | % Var. | |
| Ecuador | ||||||||||||||||||
| Guayaquil | 444 | 487 | -9% | 549 | 543 | 1% | 23 | 20 | 15% | 1,016 | 1,050 | -3% | 7,077 | 8,510 | -17% | 18,521 | 19,274 | -4% |
| Galápagos | 136 | 150 | -10% | 0 | 0 | - | 0 | 0 | - | 136 | 150 | -10% | 1,133 | 1,249 | -9% | 1,497 | 1,504 | 0% |
| Total Ecuador | 579 | 637 | -9% | 549 | 543 | 1% | 23 | 20 | 15% | 1,152 | 1,200 | -4% | 8,210 | 9,759 | -16% | 20,018 | 20,778 | -4% |
| Armenia | ||||||||||||||||||
| Zvartnots | 0 | 0 | - | 1,060 | 895 | 19% | 0 | 0 | - | 1,060 | 895 | 19% | 5,403 | 5,153 | 5% | 8,782 | 6,788 | 29% |
| Shirak | 0 | 0 | - | 44 | 52 | -16% | 0 | 0 | - | 44 | 52 | -16% | 0 | 0 | - | 267 | 285 | -6% |
| Total Armenia | 0 | 0 | - | 1,104 | 946 | 17% | 0 | 0 | - | 1,104 | 946 | 17% | 5,403 | 5,153 | 5% | 9,049 | 7,073 | 28% |
| Perú | ||||||||||||||||||
| Arequipa | 571 | 554 | 3% | 6 | 0 | 35606% | 0 | 0 | - | 577 | 554 | 4% | 695 | 563 | 24% | 4,526 | 4,508 | 0% |
| Juliaca | 125 | 137 | -9% | 0 | 0 | -71% | 0 | 0 | - | 125 | 137 | -9% | 216 | 245 | -12% | 1,002 | 1,219 | -18% |
| Puerto Maldonado | 95 | 97 | -2% | 0 | 0 | -100% | 0 | 0 | - | 95 | 97 | -2% | 176 | 178 | -1% | 835 | 931 | -10% |
| Tacna | 135 | 109 | 24% | 0 | 0 | 133% | 0 | 0 | - | 135 | 109 | 24% | 274 | 222 | 24% | 1,099 | 1,233 | -11% |
| Ayacucho | 80 | 61 | 31% | 0 | 0 | - | 0 | 0 | - | 80 | 61 | 31% | 48 | 37 | 31% | 940 | 946 | -1% |
| Total Perú | 1,005 | 958 | 5% | 6 | 0 | 7474% | 0 | 0 | - | 1,011 | 958 | 6% | 1,409 | 1,244 | 13% | 8,402 | 8,837 | -5% |
| Total CAAP | 12,733 | 12,304 | 3% | 7,687 | 7,490 | 3% | 2,088 | 2,402 | -13% | 22,509 | 22,197 | 1% | 98,646 | 94,781 | 4% | 225,712 | 231,087 | -2% |
| 1) | Starting May 3, 2018, 50% of international air traffic in Aeroparque Airport, other than flight to and from Uruguay, was reassigned to Ezeiza Airport, and the remaining 50% will be reassigned on April 1st, 2019. |
| 2) | El Palomar commenced operations in February 2018 |
Income Statement (in US$ thousands)
| 3Q19 | 3Q18 | % Var. | 9M19 | 9M18 | % Var. | |
| Continuing operations | ||||||
| Revenue | 417,095 | 347,961 | 19.9% | 1,129,238 | 947,238 | 19.2% |
| Cost of services | (302,753) | (227,762) | 32.9% | (809,013) | (630,067) | 28.4% |
| Gross profit | 114,342 | 120,199 | -4.9% | 320,225 | 317,171 | 1.0% |
| Selling, general and administrative expenses | (55,635) | (36,718) | 51.5% | (127,273) | (108,078) | 17.8% |
| Other operating income | 3,814 | 4,369 | -12.7% | 11,461 | 10,547 | 8.7% |
| Other operating expense | (759) | (827) | -8.2% | (1,624) | (1,739) | -6.6% |
| Operating income | 61,762 | 87,023 | -29.0% | 202,789 | 217,901 | -6.9% |
| Share of (loss) / income in associates | (159) | 596 | -126.7% | (863) | 676 | -227.7% |
| Income before financial results and income tax | 61,603 | 87,619 | -29.7% | 201,926 | 218,577 | -7.6% |
| Financial income | 8,108 | 15,778 | -48.6% | 33,092 | 57,158 | -42.1% |
| Financial loss | (113,199) | (114,236) | -0.9% | (192,833) | (310,766) | -37.9% |
| Inflation adjustment | (6,340) | (10,000) | -36.6% | (19,903) | (21,446) | -7.2% |
| (Loss) / Income before income tax expense | (49,828) | (20,839) | 139.1% | 22,282 | (56,477) | -139.5% |
| Income tax | 17,373 | (800) | -2271.6% | 10,241 | 5,658 | 81.0% |
| (Loss) / Income for the period | (32,455) | (21,639) | 50.0% | 32,523 | (50,819) | -164.0% |
| Attributable to: | ||||||
| Owners of the parent | (24,566) | (15,177) | 61.9% | 42,833 | (26,699) | -260.4% |
| Non-controlling interest | (7,889) | (6,462) | 22.1% | (10,310) | (24,120) | -57.3% |
Balance Sheet (in US$ thousands)
| Sept 30, 2019 | Dec 31, 2018 | Sep 30, 2018 | |
| ASSETS | |||
| Non-current assets | |||
| Intangible assets, net | 2,885,079 | 2,933,542 | 2,682,203 |
| Property, plant and equipment, net | 73,942 | 74,299 | 73,262 |
| Right-of-use asset | 8,579 | - | - |
| Investments in associates | 12,898 | 10,886 | 17,976 |
| Other financial assets at fair value through profit or loss | 3,207 | 3,372 | - |
| Other financial assets at amortized cost | 2,455 | 2,339 | 2,300 |
| Deferred tax assets | 142,497 | 153,486 | 134,902 |
| Other receivables | 118,339 | 133,193 | 112,411 |
| Trade receivables | 1,319 | 1,419 | 3,555 |
| Total Non-current assets | 3,248,315 | 3,312,536 | 3,026,609 |
| Current assets | |||
| Inventories | 9,002 | 9,769 | 9,974 |
| Other financial assets at fair value through profit or loss | 31,950 | 38,007 | 25,512 |
| Other financial assets at amortized cost | 10,327 | 42,972 | 32,708 |
| Other receivables | 95,621 | 66,531 | 65,622 |
| Current tax assets | 11,875 | 13,701 | 17,402 |
| Derivative financial instruments | 308 | - | - |
| Trade receivables | 115,199 | 116,897 | 116,084 |
| Cash and cash equivalents | 257,612 | 244,865 | 267,854 |
| Total Current assets | 531,894 | 532,742 | 535,156 |
| Total assets | 3,780,209 | 3,845,278 | 3,561,765 |
| EQUITY | |||
| Share capital | 160,022 | 160,022 | 160,022 |
| Share premium | 180,486 | 180,486 | 180,486 |
| Free distributable reserve | 385,055 | 385,055 | 385,055 |
| Non-distributable reserve | 1,351,883 | 1,351,883 | 1,351,883 |
| Currency translation adjustment | (417,914) | (378,803) | (430,628) |
| Legal reserves | 176 | 176 | 176 |
| Other reserves | (1,324,951) | (1,324,731) | (1,324,856) |
| Retained earnings | 436,989 | 394,156 | 320,246 |
| Total attributable to owners of the parent | 771,746 | 768,244 | 642,384 |
| Non-controlling interests | 422,571 | 454,453 | 404,109 |
| Total equity | 1,194,317 | 1,222,697 | 1,046,493 |
| LIABILITIES | |||
| Non-current liabilities | |||
| Borrowings | 1,051,587 | 1,027,751 | 1,045,786 |
| Deferred tax liabilities | 206,940 | 271,175 | 220,914 |
| Other liabilities | 798,896 | 871,596 | 825,964 |
| Non-current tax liabilities | - | - | 32 |
| Lease liabilities | 5,769 | - | - |
| Trade payables | 949 | 1,508 | 1,989 |
| Total Non-current liabilities | 2,064,141 | 2,172,030 | 2,094,685 |
| Current liabilities | |||
| Borrowings | 158,580 | 98,907 | 106,779 |
| Derivative financial instruments | |||
| Other liabilities | 227,310 | 225,448 | 210,931 |
| Lease liabilities | 3,765 | - | - |
| Current tax liabilities | 4,932 | 11,555 | 12,930 |
| Trade payables | 127,164 | 114,641 | 89,947 |
| Total Current liabilities | 521,751 | 450,551 | 420,587 |
| Total liabilities | 2,585,892 | 2,622,581 | 2,515,272 |
| Total equity and liabilities | 3,780,209 | 3,845,278 | 3,561,765 |
Statement of Cash Flow (in US$ thousands)
| Sept 30, 2019 | Sept 30, 2018 | |
| Cash flows from operating activities | | |
| Income for the period | 32,523 | (50,819) |
| Adjustments for: | ||
| Amortization and depreciation | 130,067 | 118,700 |
| Deferred income tax | (46,698) | (32,733) |
| Income tax accrued | 36,457 | 27,075 |
| Share of income / (loss) in associates | 863 | (676) |
| Loss on disposals of property, plant and equipment | 7 | 311 |
| Unpaid concession fees | 40,035 | 37,446 |
| Low value and short term lease payments | (2,142) | - |
| Changes in liability for Brazil concessions | 62,623 | 69,042 |
| Interest expense | 66,860 | 68,704 |
| Other financial results, net | (22,909) | (14,998) |
| Net foreign exchange | 53,276 | 124,600 |
| Leases financial cost | 383 | - |
| Other accruals | 19,752 | 3,195 |
| Inflation adjustment | 30,170 | 19,629 |
| Acquisition of Intangible assets | (250,557) | (123,175) |
| Income tax paid | (36,233) | (33,931) |
| Changes in working capital | (163,973) | (88,737) |
| Net cash (used in) / provided by operating activities | (49,496) | 123,633 |
| Cash flows from investing activities | ||
| Cash contribution in associates | (3,052) | (2,981) |
| Acquisition of other financial assets | (24,275) | (41,150) |
| Disposals of other financial assets | 62,178 | 25,773 |
| Purchase of Property, plant and equipment | (10,191) | (7,245) |
| Acquisition of Intangible assets | (620) | (250) |
| Loans with related parties | 3,832 | 136 |
| Proceeds from sale of Property, plant and Equipment | - | 49 |
| "Piana di Castello" land advance | - | (3,583) |
| Other | (388) | (465) |
| Net cash provided by investing activities | 27,484 | (29,716) |
| Cash flows from financing activities | - | |
| Proceeds from cash contributions | 27,506 | 43,703 |
| Additional acquisitions in subsidiaries | - | (40,731) |
| Disposal of subsidiaries | - | 56,638 |
| Proceeds from borrowings | 165,762 | 194,575 |
| Initial Public Offering | - | 195,601 |
| Initial Public Offering expenses paid | - | (5,495) |
| Release of guarantee deposits | - | 92,913 |
| Leases payments | (3,540) | - |
| Loans paid | (53,931) | (483,845) |
| Interest paid | (51,887) | (44,648) |
| Dividends paid | (11,376) | (14,794) |
| Net cash (used in) / provided by financing activities | 72,534 | (6,083) |
| (Decrease) / Increase in cash and cash equivalents | 50,522 | 87,834 |
| Movements in cash and cash equivalents | ||
| At the beginning of the period | 244,865 | 221,601 |
| Exchange rate (loss) / income and inflation adjustment on cash and cash equivalents | (37,775) | (41,581) |
| Increase in cash and cash equivalents | 50,522 | 87,834 |
| At the end of the period | 257,612 | 267,854 |