UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE
ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of July 2020
Commission File Number: 001-32751
GRUPO AEROPORTUARIO DEL PACÍFICO S.A.B. DE C.V.
(PACIFIC AIRPORT GROUP)
(Translation of registrant's name into English)
México
(Jurisdiction of incorporation or organization)
Avenida Mariano Otero No. 1249-B
Torre Pacifico, Piso 6
Col. Rinconada del Bosque
44530 Guadalajara, Jalisco, México
(Address of principal executive 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):
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
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Grupo Aeroportuario del Pacifico Announces Results for the Second Quarter of 2020
GUADALAJARA, Mexico, July 24, 2020 (GLOBE NEWSWIRE) -- Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (NYSE: PAC; BMV: GAP) (“the Company” or “GAP”) reported its consolidated results for the second quarter ended June 30, 2020 (2Q20). Figures are unaudited and have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).
COVID-19 Impact
During the second quarter of the year, the COVID-19 pandemic considerably affected the Company’s results, mainly with the decrease in international and domestic passenger traffic. Even though the Government of Mexico did not issue any flight restrictions during the quarter, during the months of April and May, activity for certain economic sectors did suffer restrictions. Other sectors, deemed essential, could continue operating, among them are airports. Additionally, a media campaign was implemented to incentivize the general population to stay home. Beginning in June, the Mexican Government established a plan to gradually reactivate economic activities, which permitted some domestic passenger traffic recovery. With respect Jamaican airport operations, the Government of Jamaica restricted entry of all international flights beginning on March 25. This restriction was lifted on June 15 and, as a result, airports have initiated regular operations, but with lower levels of passenger traffic.
The level of recovery in the Company’s operations and results will depend on the duration and containment of the pandemic by the Mexican, Jamaican and U.S. governments, as the main origin-destination. Due to the nature of the pandemic, the Company cannot completely estimate its impact on the financial situation or the operating results of the Company for the short, medium or long term.
2Q20 Company Measures:
Impact of COVID-19 on the Company’s Financial Position:
While the effects of the pandemic resulted in a significant decline in 2Q20 results, the Company generated a positive EBITDA. Controlling cost of services, the decrease in concession fees and technical assistance fees, allowed the Company to mitigate the impact of COVID-19 on revenues.
Despite the negative operating cash flow, the Company reported a solid financial position at the close of 2Q20. The balance of cash and cash equivalents on June 30, 2020 reached Ps. 15,748.8 million, compared to Ps. 10,973.9 million at the close of March 31, 2020. During 2Q20, the Company drew down on two credit lines, together representing Ps. 2.0 billion, one drew down in the Montego Bay airport for Ps. 151.3 million (US$7.0 million) and issued long-term bond certificates (Certificados Bursátiles) for a value of Ps. 4.2 billion. The cash decrease in 2Q20 was Ps. 1,576.4 million.
During 2Q20, the Company carried out a second evaluation covering the possible adverse impacts of the pandemic on the Company’s financial condition and operating results, as well as a review of the indicators and deterioration of the larger long-term assets, expected credit losses and recovery of assets due to deferred taxes. The conclusion was that, despite the impact of COVID-19 on 2Q20 being lower than expected, the Company cannot ensure that the negative effect of the pandemic will decline in the upcoming quarters, nor can ensure that local and global economic conditions will improve. The Company can also not ensure the availability of financing, or that general credit conditions will remain favorable.
In this evaluation, the Company reviewed financial results for the short, medium and long term, concluding that a significant deterioration of the Company’s assets is not expected. As such, the Company does not foresee business interruption or closing of operations at any of its airports.
The Company will continue to monitor the pandemic’s adverse effects on the results of the operations, including the monitoring of key indicators, deterioration tests, projections, budgets, fair values, future cash flow related to the recovery of the financial and non-financial assets, as well as possible contingencies.
It is important to mention that, at the close of 2Q20, the Company satisfied all covenants in accordance with the bank loan contracts and with all the obligations established for the bond certificates.
The Company carried out the risk valuation that represents the portfolio of airlines and commercial clients in terms of liquidity. Thus, the cost of operation recognizes a Ps. 87.0 million provision as reserves for expected credit losses.
In accordance with the estimated 2020 annual results, the Company expects an asset recovery for deferred taxes recognized in the cash flow statement, even though the results declined with respect to 2019.
The Company will continue informing the market in a timely manner regarding future material updates to the airport operations, as well as measures that are adopted for preserving liquidity and business continuity.
Summary of Results 2Q20 vs. 2Q19
Passenger Traffic
During 2Q20, total terminal passengers at the Company’s 14 airports decreased by 10,543.0 thousand passengers, or 86.4%, compared to 2Q19. During 2Q20, there were no new route openings.
Domestic
Terminal Passengers – 13 airports (in thousands): | ||||||||
Airport | 2Q19 | 2Q20 | Change | 6M19 | 6M20 | Change | ||
Guadalajara | 2,674.0 | 393.8 | (85.3 | %) | 5,094.4 | 2,730.3 | (46.4 | %) |
Tijuana * | 1,533.7 | 460.3 | (70.0 | %) | 2,894.9 | 1,880.3 | (35.0 | %) |
Los Cabos | 490.9 | 76.1 | (84.5 | %) | 885.5 | 478.8 | (45.9 | %) |
Puerto Vallarta | 479.5 | 34.0 | (92.9 | %) | 831.3 | 401.8 | (51.7 | %) |
Montego Bay | 2.4 | 0.0 | (100.0 | %) | 4.2 | 1.0 | (77.2 | %) |
Guanajuato | 532.3 | 55.9 | (89.5 | %) | 994.3 | 480.5 | (51.7 | %) |
Hermosillo | 475.0 | 58.5 | (87.7 | %) | 859.9 | 454.6 | (47.1 | %) |
Mexicali | 303.4 | 46.9 | (84.5 | %) | 569.4 | 323.9 | (43.1 | %) |
Morelia | 115.7 | 46.1 | (60.1 | %) | 225.9 | 171.9 | (23.9 | %) |
La Paz | 256.3 | 33.5 | (86.9 | %) | 466.4 | 247.0 | (47.0 | %) |
Aguascalientes | 162.3 | 20.0 | (87.7 | %) | 305.2 | 157.6 | (48.4 | %) |
Los Mochis | 103.3 | 10.6 | (89.7 | %) | 187.1 | 97.4 | (48.0 | %) |
Manzanillo | 25.4 | 1.9 | (92.4 | %) | 49.2 | 25.1 | (49.0 | %) |
Total | 7,154.1 | 1,237.6 | (82.7 | %) | 13,367.7 | 7,450.2 | (44.3 | %) |
*CBX users are classified as international passengers | ||||||||
International Terminal Passengers – 13 airports (in thousands): | ||||||||
Airport | 2Q19 | 2Q20 | Change | 6M19 | 6M20 | Change | ||
Guadalajara | 1,088.6 | 159.9 | (85.3 | %) | 2,076.7 | 1,117.7 | (46.2 | %) |
Tijuana * | 736.1 | 140.7 | (80.9 | %) | 1,394.2 | 825.0 | (40.8 | %) |
Los Cabos | 963.1 | 28.2 | (97.1 | %) | 2,019.3 | 975.2 | (51.7 | %) |
Puerto Vallarta | 713.7 | 25.0 | (96.5 | %) | 1,970.6 | 1,111.3 | (43.6 | %) |
Montego Bay | 1,179.9 | 16.7 | (98.6 | %) | 2,516.2 | 1,149.6 | (54.3 | %) |
Guanajuato | 173.8 | 16.9 | (90.3 | %) | 345.1 | 165.1 | (52.2 | %) |
Hermosillo | 17.4 | 1.9 | (89.2 | %) | 34.5 | 20.6 | (40.2 | %) |
Mexicali | 1.9 | 0.1 | (95.1 | %) | 3.3 | 1.3 | (61.1 | %) |
Morelia | 105.8 | 9.3 | (91.2 | %) | 207.1 | 108.9 | (47.4 | %) |
La Paz | 3.1 | 0.4 | (85.5 | %) | 6.6 | 3.8 | (43.2 | %) |
Aguascalientes | 54.8 | 6.9 | (87.5 | %) | 99.3 | 55.3 | (44.3 | %) |
Los Mochis | 1.9 | 0.1 | (96.4 | %) | 3.5 | 1.3 | (62.0 | %) |
Manzanillo | 15.2 | 1.1 | (93.0 | %) | 52.3 | 29.5 | (43.5 | %) |
Total | 5,055.2 | 407.0 | (91.9 | %) | 10,728.8 | 5,564.8 | (48.1 | %) |
*CBX users are classified as international passengers | ||||||||
Total Terminal Passengers – 13 airports (in thousands): | ||||||||
Airport | 2Q19 | 2Q20 | Change | 6M19 | 6M20 | Change | ||
Guadalajara | 3,762.6 | 553.7 | (85.3 | %) | 7,171.1 | 3,848.1 | (46.3 | %) |
Tijuana * | 2,269.8 | 600.9 | (73.5 | %) | 4,289.1 | 2,705.3 | (36.9 | %) |
Los Cabos | 1,453.9 | 104.3 | (92.8 | %) | 2,904.8 | 1,454.0 | (49.9 | %) |
Puerto Vallarta | 1,193.2 | 59.0 | (95.1 | %) | 2,801.9 | 1,513.1 | (46.0 | %) |
Montego Bay | 1,182.3 | 16.7 | (98.6 | %) | 2,520.4 | 1,150.6 | (54.3 | %) |
Guanajuato | 706.2 | 72.8 | (89.7 | %) | 1,339.4 | 645.6 | (51.8 | %) |
Hermosillo | 492.4 | 60.3 | (87.7 | %) | 894.5 | 475.2 | (46.9 | %) |
Mexicali | 305.3 | 47.0 | (84.6 | %) | 572.7 | 325.2 | (43.2 | %) |
Morelia | 221.5 | 55.4 | (75.0 | %) | 433.0 | 280.8 | (35.1 | %) |
La Paz | 259.4 | 33.9 | (86.9 | %) | 473.0 | 250.8 | (47.0 | %) |
Aguascalientes | 217.1 | 26.9 | (87.6 | %) | 404.6 | 212.9 | (47.4 | %) |
Los Mochis | 105.2 | 10.7 | (89.9 | %) | 190.6 | 98.7 | (48.2 | %) |
Manzanillo | 40.5 | 3.0 | (92.6 | %) | 101.5 | 54.6 | (46.2 | %) |
Total | 12,209.3 | 1,644.6 | (86.5 | %) | 24,096.5 | 13,015.0 | (46.0 | %) |
*CBX users are classified as international passengers | ||||||||
CBX Users (in thousands): | ||||||||
Airport | 2Q19 | 2Q20 | Change | 6M19 | 6M20 | Change | ||
Tijuana | 723.6 | 140.4 | (80.6 | %) | 1,370.9 | 817.7 | (40.4 | %) |
Kingston Airport (in thousands): | ||||||||
Passengers | 2Q19 | 2Q20 | Change | 6M19 | 6M20 | Change | ||
Domestic | N/A | 0.0 | N/A | N/A | 1.3 | N/A | ||
Internacional | N/A | 21.6 | N/A | N/A | 375.1 | N/A | ||
Total | N/A | 21.6 | N/A | N/A | 376.4 | N/A | ||
Total Passengers – 14 airports (in thousands): | ||||||||
Passengers | 2Q19 | 2Q20 | Change | 6M19 | 6M20 | Change | ||
Domestic | 7,154.1 | 1,237.6 | (82.7 | %) | 13,367.7 | 7,451.5 | (44.3 | %) |
Internacional | 5,055.2 | 428.6 | (91.5 | %) | 10,728.8 | 5,939.9 | (44.6 | %) |
Total | 12,209.2 | 1,666.2 | (86.4 | %) | 24,096.5 | 13,391.4 | (44.4 | %) |
Consolidated Results for the Second Quarter of 2020 (in thousands of pesos): | ||||||
2Q19 | 2Q20 | Change | ||||
Revenues | ||||||
Aeronautical services | 2,577,773 | 551,875 | (78.6 | %) | ||
Non-aeronautical services | 957,275 | 331,641 | (65.4 | %) | ||
Improvements to concession assets (IFRIC 12) | 122,363 | 601,542 | 391.6 | % | ||
Total revenues | 3,657,411 | 1,485,058 | (59.4 | %) | ||
Operating costs | ||||||
Costs of services: | 705,304 | 643,554 | (8.8 | %) | ||
Employee costs | 228,793 | 239,260 | 4.6 | % | ||
Maintenance | 148,362 | 97,402 | (34.3 | %) | ||
Safety, security & insurance | 102,312 | 104,079 | 1.7 | % | ||
Utilities | 92,489 | 79,692 | (13.8 | %) | ||
Other operating expenses | 133,348 | 123,121 | (7.7 | %) | ||
Technical assistance fees | 113,644 | 8,777 | (92.3 | %) | ||
Concession taxes | 292,887 | 94,721 | (67.7 | %) | ||
Depreciation and amortization | 425,839 | 505,174 | 18.6 | % | ||
Cost of improvements to concession assets (IFRIC 12) | 122,363 | 601,542 | 391.6 | % | ||
Other income | (5,025 | ) | (58 | ) | (98.8 | %) |
Total operating costs | 1,655,012 | 1,853,710 | 12.0 | % | ||
Income (loss) from operations | 2,002,399 | (368,652 | ) | (118.4 | %) | |
Financial Result | (235,742 | ) | (311,089 | ) | 32.0 | % |
Share of loss of associates | (3 | ) | (83 | ) | (2666.7 | %) |
Income (loss) before income taxes | 1,766,654 | (679,824 | ) | (138.5 | %) | |
Income taxes | (503,081 | ) | 97,616 | (119.4 | %) | |
Net (loss) income | 1,263,573 | (582,208 | ) | (146.1 | %) | |
Currency translation effect | (45,788 | ) | (66,233 | ) | 44.7 | % |
Cash flow hedges, net of income tax | - | (287,997 | ) | 100.0 | % | |
Remeasurements of employee benefit – net income tax | (146 | ) | (9,558 | ) | 6446.6 | % |
Comprehensive income (loss) | 1,217,639 | (945,996 | ) | (177.7 | %) | |
Non-controlling interest | (19,763 | ) | 29,645 | 250.0 | % | |
Comprehensive income (loss) attributable to controlling interest | 1,197,876 | (916,351 | ) | (176.5 | %) | |
2Q19 | 2Q20 | Change | ||||
EBITDA | 2,428,238 | 136,522 | (94.4 | %) | ||
Comprehensive income (loss) | 1,217,639 | (945,996 | ) | (177.7 | %) | |
Comprehensive income (loss) per share (pesos) | 2.1705 | (2 | (177.7 | %) | ||
Comprehensive income (loss) per ADS (US dollars) | 0.9403 | (0.73 | (177.7 | %) | ||
Operating income (loss) margin | 54.7 | % | (24.8 | %) | (145.3 | %) |
Operating income (loss) margin (excluding IFRIC 12) | 56.6 | % | (41.7 | %) | (173.7 | %) |
EBITDA margin | 66.4 | % | 9.2 | % | (86.2 | %) |
EBITDA margin (excluding IFRIC 12) | 68.8 | % | 15.6 | % | (77.5 | %) |
Costs of services and improvements / total revenues | 22.6 | % | 83.8 | % | 270.5 | % |
Cost of services / total revenues (excluding IFRIC 12) | 20.0 | % | 72.8 | % | 265.1 | % |
- Net (loss) income and comprehensive income
(loss) per share were calculated based on 561,000,000 outstanding shares. U.S. dollar figures presented were converted from
pesos to U.S. dollars at a rate of Ps. 23.0821 per U.S. dollar (the noon buying rate on June 30, 2020, as published by the
U.S. Federal Reserve Board). - For purposes of the consolidation of the Montego Bay airport and the Kingston airport, the average monthly exchange rate of Ps. 23.3631 per U.S. dollar for the three months ended June 30, 2020 was used. | ||||||
Revenues (2Q20 vs. 2Q19)
2Q19 |
2Q20 |
Change | ||||
Businesses operated by third parties: | ||||||
Duty-free | 129,089 | 25,647 | (80.1 | %) | ||
Food and beverage | 122,173 | 32,575 | (73.3 | %) | ||
Retail operations | 94,941 | 36,812 | (61.2 | %) | ||
Car rentals | 92,074 | 46,340 | (49.7 | %) | ||
Leasing of space | 61,672 | 49,487 | (19.8 | %) | ||
Time shares | 55,019 | 1,085 | (98.0 | %) | ||
Ground transportation | 35,746 | 12,414 | (65.3 | %) | ||
Communications and financial services | 22,153 | 5,820 | (73.7 | %) | ||
Other commercial revenues | 16,688 | 13,548 | (18.8 | %) | ||
Total | 629,555 | 223,727 | (64.5 | %) | ||
Businesses operated directly by us: | ||||||
Car parking | 95,417 | 23,130 | (75.8 | %) | ||
VIP lounges | 70,906 | 19,401 | (72.6 | %) | ||
Advertising | 59,941 | 23,739 | (60.4 | %) | ||
Convenience stores | 42,167 | 8,542 | (79.7 | %) | ||
Total | 268,431 | 74,811 | (72.1 | %) | ||
Recovery of costs | 59,289 | 33,103 | (44.2 | %) | ||
Total Non-aeronautical Revenues | 957,275 | 331,641 | (65.4 | %) | ||
Figures expressed in thousands of Mexican pesos. |
____________
[1] Revenues from improvements to concession assets are recognized in accordance with International Financial Reporting Interpretation Committee 12 “Service Concession Arrangements” (IFRIC 12), but this recognition does not have a cash impact or an impact on the Company’s operating results. Amounts included as a result of the recognition of IFRIC 12 are related to construction of infrastructure in each quarter to which the Company has committed in accordance with the Company’s Master Development Programs in Mexico and Capital Development Program in Jamaica. All margins and ratios calculated using “Total Revenues” include revenues from improvements to concession assets (IFRIC 12), and, consequently, such margins and ratios may not be comparable to other ratios and margins, such as EBITDA margin, operating margin or other similar ratios that are calculated based on those results of the Company that do have a cash impact.
Total operating costs increased by Ps. 198.7 million, or 12.0%, compared to 2Q19, mainly due to the increase in the cost for improvements to concession assets (IFRIC-12) of Ps. 479.2 million. Not including this cost, total operating costs declined by Ps. 280.5 million, or 18.3%. This was comprised in the following manner:
Mexican Airports:
The decline in the cost of services was mainly due to the partial closure of underutilized operating areas during 2Q20, implemented to reduce expenses:
Montego Bay Airport:
Kingston Airport:
Operating margin for 2Q20 weakened, from a margin of 54.7% in 2Q19 to a margin of (24.8%) in 2Q20. Excluding the effects of IFRIC-12, operating margin went from 56.6% in 2Q19 to a margin of (41.7%) in 2Q20. Operating losses for the 2Q20 were Ps. 368.7 million, representing a decline of Ps. 2,371.1 million, or (118.4%) compared to 2Q19.
EBITDA margin went from 66.4% in 2Q19 to 9.2% in 2Q20. Excluding the effects of IFRIC-12, EBITDA margin went from 68.8% in 2Q19 to 15.6% in 2Q20. The nominal value of EBITDA was Ps. 136.5 million in 2Q20, compared to Ps. 2,428.2 million in 2Q19, a change of (94.4%).
The net financial result increased by Ps. 75.3 million, from a net expense of Ps. 235.7 million in 2Q19 to a net expense of Ps. 311.1 million in 2Q20. This decrease was mainly the result of:
In 2Q20, there was comprehensive loss of Ps. 946.0 million, compared to a net income and comprehensive gain of Ps. 1,217.6 million in 2Q19. This effect was mainly derived by the substantial passenger traffic decline, which also impacted revenues for 2Q20.
In 2Q20, the Company experienced a net loss of Ps. 582.2 million, while in 2Q19, the Company experienced a net gain of Ps. 1,263.6 million. Income taxes decreased by Ps. 600.7 million, or 119.4%, as a result of a decline of Ps. 638.9 million in income tax incurred, which was offset by the decline of Ps. 38.2 million in the benefit from deferred income tax, resulting from the increase in the 2Q20 deflation, that went from 0.1% in 2Q19 to 0.6% in 2Q20.
Consolidated Results for the First Six Months of 2020 (in thousands of pesos): | ||||||
6M19 | 6M20 | Change | ||||
Revenues | ||||||
Aeronautical services | 5,209,098 | 3,675,657 | (29.4 | %) | ||
Non-aeronautical services | 1,858,600 | 1,353,482 | (27.2 | %) | ||
Improvements to concession assets (IFRIC 12) | 268,850 | 1,424,757 | 429.9 | % | ||
Total revenues | 7,336,548 | 6,453,897 | (12.0 | %) | ||
Operating costs | ||||||
Costs of services: | 1,300,943 | 1,380,112 | 6.1 | % | ||
Employee costs | 423,116 | 486,466 | 15.0 | % | ||
Maintenance | 260,802 | 211,805 | (18.8 | %) | ||
Safety, security & insurance | 204,443 | 229,405 | 12.2 | % | ||
Utilities | 165,258 | 171,319 | 3.7 | % | ||
Other operating expenses | 247,324 | 281,117 | 13.7 | % | ||
Technical assistance fees | 229,218 | 141,041 | (38.5 | %) | ||
Concession taxes | 618,154 | 538,427 | (12.9 | %) | ||
Depreciation and amortization | 847,440 | 987,231 | 16.5 | % | ||
Cost of improvements to concession assets (IFRIC 12) | 268,850 | 1,424,757 | 429.9 | % | ||
Other income | (8,933 | ) | 9,022 | (201.0 | %) | |
Total operating costs | 3,255,672 | 4,480,591 | 37.6 | % | ||
Income from operations | 4,080,876 | 1,973,306 | (51.6 | %) | ||
Financial Result | (318,347 | ) | (326,183 | ) | 2.5 | % |
Share of loss of associates | (7 | ) | 3 | 142.9 | % | |
Income before income taxes | 3,762,522 | 1,647,126 | (56.2 | %) | ||
Income taxes | (1,101,400 | ) | (421,271 | ) | (61.8 | %) |
Net income | 2,661,122 | 1,225,855 | (53.9 | %) | ||
Currency translation effect | (139,739 | ) | 1,351,131 | (1066.9 | %) | |
Cash flow hedges, net of income tax | - | (348,105 | ) | 100.0 | % | |
Remeasurements of employee benefit – net income tax | (293 | ) | (9,705 | ) | 3208.0 | % |
Comprehensive income | 2,521,090 | 2,219,176 | (12.0 | %) | ||
Non-controlling interest | (44,929 | ) | (164,109 | ) | (265.3 | %) |
Comprehensive income attributable to controlling interest | 2,476,161 | 2,055,067 | (17.0 | %) | ||
6M19 | 6M20 | Change | ||||
EBITDA | 4,928,315 | 2,960,536 | (39.9 | %) | ||
Comprehensive income | 2,521,091 | 2,219,176 | (12.0 | %) | ||
Comprehensive income per share (pesos) | 4.4939 | 3.9558 | (12.0 | %) | ||
Comprehensive income per ADS (US dollars) | 1.9469 | 1.7138 | (12.0 | %) | ||
Operating income margin | 55.6 | % | 30.6 | % | (45.0 | %) |
Operating income margin (excluding IFRIC 12) | 57.7 | % | 39.3 | % | (31.9 | %) |
EBITDA margin | 67.2 | % | 45.9 | % | (31.7 | %) |
EBITDA margin (excluding IFRIC 12) | 69.7 | % | 58.9 | % | (15.6 | %) |
Costs of services and improvements / total revenues | 21.4 | % | 43.5 | % | 103.1 | % |
Cost of services / total revenues (excluding IFRIC 12) | 18.4 | % | 27.4 | % | 49.1 | % |
- Net income and comprehensive income per
share were calculated based on 561,000,000 outstanding shares. U.S. dollar figures presented were converted from pesos to
U.S. dollars at a rate of Ps. 23.0821 per U.S. dollar (the noon buying rate on June 30, 2020, as published by the U.S. Federal
Reserve Board). - For purposes of the consolidation of the Montego Bay airport and the Kingston airport, the average monthly exchange rate of Ps. 21.6091 per U.S. dollar for the six months ended June 30, 2020 was used. | ||||||
Revenues (1H20 vs. 1H19)
6M19 |
6M20 |
Change | ||||
Businesses operated by third parties: | ||||||
Duty-free | 260,140 | 177,674 | (31.7 | %) | ||
Food and beverage | 234,568 | 177,321 | (24.4 | %) | ||
Retail operations | 186,767 | 143,233 | (23.3 | %) | ||
Car rentals | 184,247 | 156,716 | (14.9 | %) | ||
Leasing of space | 124,174 | 105,197 | (15.3 | %) | ||
Time shares | 107,846 | 53,543 | (50.4 | %) | ||
Ground transportation | 72,747 | 50,674 | (30.3 | %) | ||
Communications and financial services | 43,242 | 36,927 | (14.6 | %) | ||
Other commercial revenues | 32,943 | 39,064 | 18.6 | % | ||
Total | 1,246,674 | 940,349 | (24.6 | %) | ||
Businesses operated directly by us: | ||||||
Car parking | 181,000 | 101,234 | (44.1 | %) | ||
VIP lounges | 134,518 | 100,687 | (25.1 | %) | ||
Advertising | 94,868 | 57,673 | (39.2 | %) | ||
Convenience stores | 76,282 | 58,812 | (22.9 | %) | ||
Total | 486,668 | 318,406 | (34.6 | %) | ||
Recovery of costs | 125,257 | 94,727 | (24.4 | %) | ||
Total Non-aeronautical Revenues | 1,858,600 | 1,353,482 | (27.2 | %) | ||
Figures expressed in thousands of Mexican pesos. |
____________
[1] Revenues from improvements to concession assets are recognized in accordance with International Financial Reporting Interpretation Committee 12 “Service Concession Arrangements” (IFRIC 12), but this recognition does not have a cash impact or an impact on the Company’s operating results. Amounts included as a result of the recognition of IFRIC 12 are related to construction of infrastructure in each quarter to which the Company has committed in accordance with the Company’s Master Development Programs in Mexico and Capital Development Program in Jamaica. All margins and ratios calculated using “Total Revenues” include revenues from improvements to concession assets (IFRIC 12), and, consequently, such margins and ratios may not be comparable to other ratios and margins, such as EBITDA margin, operating margin or other similar ratios that are calculated based on those results of the Company that do have a cash impact.
Total operating costs increased by Ps. 1,224.9 million, or 37.6%, compared to 1H19, mainly due to the increase of Ps. 1,155.9 million in the cost of improvements to the concession assets (IFRIC-12). Excluding this line item, operating costs declined by Ps. 69.0 million in 1H20.
Mexican Airports:
The decline in the cost of services was mainly due to the following:
Montego Bay Airport:
Kingston Airport:
Operating margin went from 55.6% in 1H19 to 30.6% in 1H20. Excluding the effects of IFRIC 12, operating margin went from 57.7% in 1H19 to 39.3% in 1H20.
EBITDA margin went from 67.2% in 1H19 to 45.9% in 1H20. Excluding the effects of IFRIC-12, EBITDA margin went from 69.7% in 1H19 to 58.9% in 1H20. The nominal value of EBITDA was Ps. 2,960.5 million in the first half of 2020.
The net financial result increased by Ps. 7.8 million, from a net expense of Ps. 318.3 million in 1H19 to a net expense of Ps. 326.1 million in 1H20. This decrease was mainly the result of:
Comprehensive income decreased by Ps. 301.9 million, or 12.0%, compared to 1H19. This was mainly due to the substantial decline in passenger traffic, which also impacted revenues for the period.
Net income decreased by Ps. 1,435.3 million, or 53.9% in 1H20, due to a lower operating revenue of Ps. 2,107.6 million, which was offset by lower income taxes of Ps. 680.1 million, or 61.8%, as a result of a decrease of Ps. 528.5 million in the income tax incurred, as well as the increase of Ps. 151.6 million in the benefit from deferred income tax, due to the decline in accumulated inflation, that went from 1.1% in 1H19 to 0.6% in 1HQ20.
Statement of Financial Position
Total assets as of June 30, 2020 increased by Ps. 8,874.9 million compared to 2019, primarily due to the following items: (i) cash and equivalents of Ps. 5,524.4 million; (ii) improvements to concession assets of Ps. 1,844.0 million; (iii) an increase in deferred taxes of Ps. 465.8 million; (iv) tax accounts receivable of Ps. 444.1 million; and (v) airport concessions of Ps. 337.9 million (due to the valuation of the concessions in Jamaica in U.S. dollars and the depreciation of the Mexican peso), among others.
Total liabilities as of June 30, 2020 increased by Ps. 4,261.6 million compared to the same period of 2019. This increase was primarily due to the following items: (i) Payment and issuance of Ps. 5.0 billion (net) in long-term bond certificates (Certificados bursátiles), (ii) bank loans of Ps. 2,151.3 million; (iii) derivative financial instruments of Ps. 823.1 million, and iv) Accounts payable of Ps. 570.2 million. This was offset by: (i) dividends payable for Ps. 4,425.4 million, among others.
Recent Events
On June 25, the Company successfully completed the issuance of 42 million long-term bond certificates (Certificados bursátiles) in Mexico for a total value of Ps. 4.2 billion. The amount of the issuance was up to Ps. 3.0 billion with a greenshoe option of up to 40%, which was reached at the closing of the issuance: i) Ps. 602.0 million of these bonds certificates are at a variable rate of TIIE-28 plus 85 basis points, with principal due at maturity on June 22, 2023; ii) Ps. 3.598 billion at a fixed rate of 8.14%, with principal due at maturity on June 17, 2027.
- On June 30, Aeromexico announced the initiation of a voluntary restructuring process under Chapter 11 of the United States Bankruptcy Code, which will be carried out while the airline continues its operations. Currently, Aeromexico represents 10% of passenger traffic in the Company’s airport network and does not have any past due debts.
Company Description
Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (GAP) operates 12 airports throughout Mexico’s Pacific region, including the major cities of Guadalajara and Tijuana, the four tourist destinations of Puerto Vallarta, Los Cabos, La Paz and Manzanillo, and six other mid-sized cities: Hermosillo, Guanajuato, Morelia, Aguascalientes, Mexicali and Los Mochis. In February 2006, GAP’s shares were listed on the New York Stock Exchange under the ticker symbol “PAC” and on the Mexican Stock Exchange under the ticker symbol “GAP”. In April 2015, GAP acquired 100% of Desarrollo de Concesiones Aeroportuarias, S.L., which owns a majority stake in MBJ Airports Limited, a company operating Sangster International Airport in Montego Bay, Jamaica. In October 2018, GAP entered into a concession agreement for the operation of the Norman Manley International Airport in Kingston, Jamaica and took control of the operation in October 2019.
This press release contains references to EBITDA, a financial performance measure not recognized under IFRS and which does not purport to be an alternative to IFRS measures of operating performance or liquidity. We caution investors not to place undue reliance on non-GAAP financial measures such as EBITDA, as these have limitations as analytical tools and should be considered as a supplement to, not a substitute for, the corresponding measures calculated in accordance with IFRS.
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management’s current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words “anticipates”, “believes”, “estimates”, “expects”, “plans” and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.
In accordance with Section 806 of the Sarbanes-Oxley Act of 2002 and article 42 of the “Ley del Mercado de Valores”, GAP has implemented a “whistleblower” program, which allows complainants to anonymously and confidentially report suspected activities that may involve criminal conduct or violations. The telephone number in Mexico, facilitated by a third party that is in charge of collecting these complaints, is 01 800 563 00 47. The web site is www.lineadedenuncia.com/gap. GAP’s Audit Committee will be notified of all complaints for immediate investigation.
Exhibit A: Operating results by airport (in thousands of pesos):
Airport | 2Q19 |
2Q20 | Change | 6M19 |
6M20 | Change | ||||||
Guadalajara | ||||||||||||
Aeronautical services | 697,161 | 170,144 | (75.6 | %) | 1,389,142 | 975,551 | (29.8 | %) | ||||
Non-aeronautical services | 244,078 | 83,201 | (65.9 | %) | 463,117 | 302,391 | (34.7 | %) | ||||
Improvements to concession assets (IFRIC 12) | 10,394 | 258,940 | 2391.2 | % | 20,788 | 517,880 | 2391.2 | % | ||||
Total Revenues | 951,631 | 512,285 | (46.2 | %) | 1,873,045 | 1,795,821 | (4.1 | %) | ||||
Operating income (loss) | 598,018 | (12,121 | ) | (102.0 | %) | 1,188,218 | 667,015 | (43.9 | %) | |||
EBITDA | 687,455 | 79,807 | (88.4 | %) | 1,362,259 | 849,966 | (37.6 | %) | ||||
Tijuana | ||||||||||||
Aeronautical services | 400,004 | 128,227 | (67.9 | %) | 758,237 | 508,525 | (32.9 | %) | ||||
Non-aeronautical services | 117,233 | 46,017 | (60.7 | %) | 208,954 | 163,218 | (21.9 | %) | ||||
Improvements to concession assets (IFRIC 12) | 5,586 | 143,260 | 2464.8 | % | 11,171 | 286,520 | 2464.8 | % | ||||
Total Revenues | 522,822 | 317,503 | (39.3 | %) | 978,362 | 958,263 | (2.1 | %) | ||||
Operating income | 318,809 | 1,084 | (99.7 | %) | 600,362 | 305,299 | (49.1 | %) | ||||
EBITDA | 372,321 | 62,999 | (83.1 | %) | 704,165 | 429,375 | (39.0 | %) | ||||
Los Cabos | ||||||||||||
Aeronautical services | 356,629 | 44,404 | (87.5 | %) | 710,960 | 474,805 | (33.2 | %) | ||||
Non-aeronautical services | 201,824 | 37,445 | (81.4 | %) | 396,433 | 252,977 | (36.2 | %) | ||||
Improvements to concession assets (IFRIC 12) | 61,775 | 162,350 | 162.8 | % | 123,550 | 324,699 | 162.8 | % | ||||
Total Revenues | 620,228 | 244,198 | (60.6 | %) | 1,230,943 | 1,052,482 | (14.5 | %) | ||||
Operating income (loss) | 362,039 | (58,947 | ) | (116.3 | %) | 739,548 | 392,276 | (47.0 | %) | |||
EBITDA | 422,210 | 7,720 | (98.2 | %) | 856,160 | 524,268 | (38.8 | %) | ||||
Puerto Vallarta | ||||||||||||
Aeronautical services | 279,770 | 29,989 | (89.3 | %) | 660,954 | 484,538 | (26.7 | %) | ||||
Non-aeronautical services | 118,166 | 29,183 | (75.3 | %) | 247,268 | 170,709 | (31.0 | %) | ||||
Improvements to concession assets (IFRIC 12) | 2,972 | 113,707 | 3725.5 | % | 5,945 | 227,413 | 3725.5 | % | ||||
Total Revenues | 400,908 | 172,878 | (56.9 | %) | 914,167 | 882,660 | (3.4 | %) | ||||
Operating income (loss) | 242,091 | (49,519 | ) | (120.5 | %) | 607,339 | 387,502 | (36.2 | %) | |||
EBITDA | 282,693 | (7,701 | ) | (102.7 | %) | 686,428 | 469,982 | (31.5 | %) | |||
Montego Bay | ||||||||||||
Aeronautical services | 379,769 | 50,229 | (86.8 | %) | 818,696 | 506,791 | (38.1 | %) | ||||
Non-aeronautical services | 145,815 | 58,020 | (60.2 | %) | 297,603 | 203,673 | (31.6 | %) | ||||
Improvements to concession assets (IFRIC 12) | 16,927 | 63,390 | 274.5 | % | 57,977 | 79,377 | 36.9 | % | ||||
Total Revenues | 542,511 | 171,639 | (68.4 | %) | 1,174,276 | 789,841 | (32.7 | %) | ||||
Operating income (loss) | 169,775 | (136,422 | ) | (180.4 | %) | 377,807 | 67,090 | (82.2 | %) | |||
EBITDA | 269,869 | 517 | (99.8 | %) | 573,775 | 320,634 | (44.1 | %) | ||||
Airport | 2Q19 | 2Q20 | Change | 6M19 | 6M20 | Change | ||||||
Guanajuato | ||||||||||||
Aeronautical services | 154,357 | 21,967 | (85.8 | %) | 285,782 | 163,714 | (42.7 | %) | ||||
Non-aeronautical services | 44,241 | 16,977 | (61.6 | %) | 83,462 | 63,953 | (23.4 | %) | ||||
Improvements to concession assets (IFRIC 12) | 817 | 32,469 | 3875.8 | % | 1,633 | 64,939 | 3875.8 | % | ||||
Total Revenues | 199,415 | 71,413 | (64.2 | %) | 370,877 | 292,606 | (21.1 | %) | ||||
Operating income (loss) | 130,734 | (8,907 | ) | (106.8 | %) | 244,541 | 113,980 | (53.4 | %) | |||
EBITDA | 148,596 | 9,224 | (93.8 | %) | 279,606 | 149,494 | (46.5 | %) | ||||
Hermosillo | ||||||||||||
Aeronautical services | 88,219 | 17,314 | (80.4 | %) | 161,699 | 100,283 | (38.0 | %) | ||||
Non-aeronautical services | 24,422 | 11,519 | (52.8 | %) | 45,757 | 35,810 | (21.7 | %) | ||||
Improvements to concession assets (IFRIC 12) | 832 | 4,347 | 422.5 | % | 1,664 | 8,695 | 422.5 | % | ||||
Total Revenues | 113,474 | 33,180 | (70.8 | %) | 209,121 | 144,788 | (30.8 | %) | ||||
Operating income (loss) | 48,615 | (15,892 | ) | (132.7 | %) | 85,910 | 31,792 | (63.0 | %) | |||
EBITDA | 68,346 | 3,022 | (95.6 | %) | 124,613 | 69,723 | (44.0 | %) | ||||
Others (1) | ||||||||||||
Aeronautical services | 221,864 | 89,602 | (59.6 | %) | 423,629 | 461,452 | 8.9 | % | ||||
Non-aeronautical services | 61,496 | 49,280 | (19.9 | %) | 116,006 | 160,751 | 38.6 | % | ||||
Improvements to concession assets (IFRIC 12) | 23,061 | 92,155 | 299.6 | % | 46,121 | 184,310 | 299.6 | % | ||||
Total Revenues | 306,421 | 231,037 | (24.6 | %) | 585,756 | 806,513 | 37.7 | % | ||||
Operating income (loss) | 91,351 | (96,136 | ) | (205.2 | %) | 164,712 | (15,563 | ) | (109.4 | %) | ||
EBITDA | 142,203 | (36,625 | ) | (125.8 | %) | 263,909 | 102,764 | (61.1 | %) | |||
Total | ||||||||||||
Aeronautical services | 2,577,773 | 551,875 | (78.6 | %) | 5,209,098 | 3,675,657 | (29.4 | %) | ||||
Non-aeronautical services | 957,275 | 331,641 | (65.4 | %) | 1,858,600 | 1,353,482 | (27.2 | %) | ||||
Improvements to concession assets (IFRIC 12) | 122,363 | 870,618 | 611.5 | % | 268,850 | 1,693,833 | 530.0 | % | ||||
Total Revenues | 3,657,410 | 1,754,134 | (52.0 | %) | 7,336,548 | 6,722,974 | (8.4 | %) | ||||
Operating income (loss) | 1,961,431 | (376,860 | ) | (119.2 | %) | 4,008,436 | 1,949,390 | (51.4 | %) | |||
EBITDA | 2,393,692 | 118,965 | (95.0 | %) | 4,850,913 | 2,916,205 | (39.9 | %) | ||||
(1) Others include the operating results of the Aguascalientes, La Paz, Los Mochis, Manzanillo, Mexicali, Morelia and Kingston airports. |
Exhibit B: Consolidated statement of financial position as of June 30 (in thousands of pesos):
2019 | 2020 | Change | % | |||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | 10,224,400 | 15,748,829 | 5,524,429 | 54.0 | % | |||
Trade accounts receivable - net | 1,091,287 | 1,060,950 | (30,337 | ) | (2.8 | %) | ||
Other current assets | 376,954 | 821,097 | 444,143 | 117.8 | % | |||
Total current assets | 11,692,641 | 17,630,876 | 5,938,235 | 50.8 | % | |||
Advanced payments to suppliers | 170,011 | 367,078 | 197,067 | 115.9 | % | |||
Machinery, equipment and improvements to leased buildings - net | 1,834,010 | 1,999,903 | 165,893 | 9.0 | % | |||
Improvements to concession assets - net | 11,134,421 | 12,978,449 | 1,844,028 | 16.6 | % | |||
Airport concessions - net | 11,088,915 | 11,426,767 | 337,852 | 3.0 | % | |||
Rights to use airport facilities - net | 1,391,921 | 1,318,500 | (73,421 | ) | (5.3 | %) | ||
Deferred income taxes | 5,389,576 | 5,855,337 | 465,761 | 8.6 | % | |||
Other non-current assets | 213,331 | 212,791 | (540 | ) | (0.3 | %) | ||
Total assets | 42,914,825 | 51,789,700 | 8,874,875 | 20.7 | % | |||
Liabilities | ||||||||
Current liabilities | 8,262,415 | 6,079,799 | (2,182,616 | ) | (26.4 | %) | ||
Long-term liabilities | 16,377,011 | 22,821,284 | 6,444,273 | 39.3 | % | |||
Total liabilities | 24,639,426 | 28,901,083 | 4,261,657 | 17.3 | % | |||
Stockholders' Equity | ||||||||
Common stock | 6,185,082 | 6,185,082 | - | 0.0 | % | |||
Legal reserve | 1,592,551 | 1,592,551 | - | 0.0 | % | |||
Net income | 2,600,089 | 1,227,550 | (1,372,539 | ) | (52.8 | %) | ||
Retained earnings | 4,579,883 | 9,940,035 | 5,360,152 | 117.0 | % | |||
Reserve for share repurchase | 3,283,374 | 3,283,374 | - | 0.0 | % | |||
Repurchased shares | (1,733,374 | ) | (1,733,374 | ) | - | 0.0 | % | |
Foreign currency translation reserve | 651,985 | 1,711,320 | 1,059,335 | 162.5 | % | |||
Remeasurements of employee benefit – Net | 7,717 | (3,099 | ) | (10,816 | ) | (140.2 | %) | |
Cash flow hedges- Net | - | (520,200 | ) | (520,200 | ) | 100.0 | % | |
Total controlling interest | 17,167,307 | 21,683,239 | 4,515,932 | 26.3 | % | |||
Non-controlling interest | 1,108,093 | 1,205,379 | 97,286 | 8.8 | % | |||
Total stockholder’s equity | 18,275,401 | 22,888,618 | 4,613,218 | 25.2 | % | |||
Total liabilities and stockholders' equity | 42,914,825 | 51,789,700 | 8,874,875 | 20.7 | % | |||
The non-controlling interest corresponds to the 25.5% stake held in the Montego Bay airport by Vantage Airport Group Limited (“Vantage”). |
Exhibit C: Consolidated statement of cash flows (in thousands of pesos):
2Q19 | 2Q20 | Change | 6M19 | 6M20 | Change | |||||||
Cash flows from operating activities: | ||||||||||||
Consolidated net income (loss) | 1,263,573 | (582,208 | ) | (146.1 | %) | 2,661,122 | 1,225,855 | (53.9 | %) | |||
Postemployment benefit costs | 2,071 | 2,048 | (1.1 | %) | 6,929 | 6,666 | (3.8 | %) | ||||
Allowance expected credit loss | (5,172 | ) | 41,084 | (894.4 | %) | (25,087 | ) | 87,051 | (447.0 | %) | ||
Depreciation and amortization | 425,839 | 505,174 | 18.6 | % | 847,440 | 987,231 | 16.5 | % | ||||
(Gain) loss on sale of machinery, equipment and improvements to leased assets | 1,173 | (11,147 | ) | (1050.3 | %) | 2,062 | (14,199 | ) | (788.5 | %) | ||
Interest expense | 311,170 | 312,080 | 0.3 | % | 547,517 | 626,261 | 14.4 | % | ||||
Share of profit of associate | 3 | 89 | 2866.7 | % | 7 | 3 | (55.1 | %) | ||||
Provisions | 1,770 | 885 | (50.0 | %) | 3,390 | (1,345 | ) | (139.7 | %) | |||
Income tax expense | 503,081 | (97,616 | ) | (119.4 | %) | 1,101,404 | 421,271 | (61.8 | %) | |||
Unrealized exchange loss | (19,176 | ) | (111,964 | ) | 483.9 | % | (70,464 | ) | 652,719 | (1026.3 | %) | |
Net loss on derivative financial instruments | 88,164 | 30,312 | (65.6 | %) | 98,859 | 58,754 | (40.6 | %) | ||||
2,572,495 | 88,737 | (96.6 | %) | 5,173,178 | 4,050,265 | (21.7 | %) | |||||
Changes in working capital: | ||||||||||||
(Increase) decrease in | ||||||||||||
Trade accounts receivable | 146,456 | 711,733 | 386.0 | % | 319,498 | 382,344 | 19.7 | % | ||||
Recoverable tax on assets and other assets | (64,829 | ) | (617,650 | ) | 852.7 | % | (102,168 | ) | (458,057 | ) | 348.3 | % |
Increase (decrease) in | ||||||||||||
Concession taxes payable | (209,778 | ) | (411,611 | ) | 96.2 | % | (150,118 | ) | (376,329 | ) | 150.7 | % |
Accounts payable | (145,152 | ) | (565,673 | ) | 289.7 | % | (149,296 | ) | (343,322 | ) | 130.0 | % |
Cash generated (used) by operating activities | 2,299,193 | (794,464 | ) | (134.6 | %) | 5,091,094 | 3,254,902 | (36.1 | %) | |||
Income taxes paid | (543,418 | ) | (152,568 | ) | (71.9 | %) | (1,066,816 | ) | (629,357 | ) | (41.0 | %) |
Net cash flows provided by operating activities | 1,755,774 | (947,032 | ) | (153.9 | %) | 4,024,277 | 2,625,544 | (34.8 | %) | |||
Cash flows from investing activities: | ||||||||||||
Machinery, equipment and improvements to concession assets | (395,736 | ) | (606,257 | ) | 53.2 | % | (844,627 | ) | (1,244,295 | ) | 47.3 | % |
Cash flows from sales of machinery and equipment | 332 | 28 | (91.6 | %) | 707 | 193 | (72.7 | %) | ||||
Other investment activities | (27,166 | ) | (40,617 | ) | 49.5 | % | (25,574 | ) | (55,001 | ) | 115.1 | % |
Acquisition business | 9,586 | - | 0.0 | % | 9,586 | - | 0.0 | % | ||||
Net cash used by investment activities | (412,985 | ) | (646,846 | ) | 56.6 | % | (859,908 | ) | (1,299,104 | ) | 51.1 | % |
Cash flows from financing activities: | ||||||||||||
Capital distribution | (1,592,494 | ) | - | (100.0 | %) | (1,592,494 | ) | - | (100.0 | %) | ||
Debt securities | - | 4,200,000 | 100.0 | % | 3,000,000 | 7,200,000 | 140.0 | % | ||||
Payment from Debt securities | - | - | 0.0 | % | - | (2,200,000 | ) | 100.0 | % | |||
Interest paid | (249,009 | ) | (257,118 | ) | 3.3 | % | (546,295 | ) | (608,416 | ) | 11.4 | % |
Bank Loans | 95,862 | 2,151,264 | 2144.1 | % | 95,862 | 2,151,264 | 2144.1 | % | ||||
Interest paid on lease | (671 | ) | (675 | ) | 0.6 | % | (1,988 | ) | (1,392 | ) | (30.0 | %) |
Payments of obligations for leasing | (3,074 | ) | (3,163 | ) | 2.9 | % | (7,981 | ) | (6,815 | ) | (14.6 | %) |
Net cash flows used in financing activities | (1,749,386 | ) | 6,090,308 | (448.1 | %) | 947,105 | 6,534,640 | 590.0 | % | |||
Effects of exchange rate changes on cash held | (25,594 | ) | 278,509 | (1188.2 | %) | (38,531 | ) | 387,554 | (1105.8 | %) | ||
Net increase in cash and cash equivalents | (432,189 | ) | 4,774,939 | (1204.8 | %) | 4,072,944 | 8,248,636 | 102.5 | % | |||
Cash and cash equivalents at beginning of year | 10,656,588 | 10,973,890 | 3.0 | % | 6,151,457 | 7,500,193 | 21.9 | % | ||||
Cash and cash equivalents at the end of year | 10,224,400 | 15,748,829 | 54.0 | % | 10,224,400 | 15,748,829 | 54.0 | % | ||||
Exhibit D: Consolidated statements of profit or loss and other comprehensive income (in thousands of pesos):
2Q19 | 2Q20 | Change | 6M19 | 6M20 | Change | |||||||
Revenues | ||||||||||||
Aeronautical services | 2,577,773 | 551,875 | (78.6 | %) | 5,209,098 | 3,675,657 | (29.4 | %) | ||||
Non-aeronautical services | 957,275 | 331,641 | (65.4 | %) | 1,858,600 | 1,353,482 | (27.2 | %) | ||||
Improvements to concession assets (IFRIC 12) | 122,363 | 601,542 | 391.6 | % | 268,850 | 1,424,757 | 429.9 | % | ||||
Total revenues | 3,657,411 | 1,485,058 | (59.4 | %) | 7,336,548 | 6,453,897 | (12.0 | %) | ||||
Operating costs | ||||||||||||
Costs of services: | 705,304 | 643,554 | (8.8 | %) | 1,300,943 | 1,380,112 | 6.1 | % | ||||
Employee costs | 228,793 | 239,260 | 4.6 | % | 423,116 | 486,466 | 15.0 | % | ||||
Maintenance | 148,362 | 97,402 | (34.3 | %) | 260,802 | 211,805 | (18.8 | %) | ||||
Safety, security & insurance | 102,312 | 104,079 | 1.7 | % | 204,443 | 229,405 | 12.2 | % | ||||
Utilities | 92,489 | 79,692 | (13.8 | %) | 165,258 | 171,319 | 3.7 | % | ||||
Other operating expenses | 133,348 | 123,121 | (7.7 | %) | 247,324 | 281,117 | 13.7 | % | ||||
Technical assistance fees | 113,644 | 8,777 | (92.3 | %) | 229,218 | 141,041 | (38.5 | %) | ||||
Concession taxes | 292,887 | 94,721 | (67.7 | %) | 618,154 | 538,427 | (12.9 | %) | ||||
Depreciation and amortization | 425,839 | 505,174 | 18.6 | % | 847,440 | 987,231 | 16.5 | % | ||||
Cost of improvements to concession assets (IFRIC 12) | 122,363 | 601,542 | 391.6 | % | 268,850 | 1,424,757 | 429.9 | % | ||||
Other income | (5,025 | ) | (58 | ) | (98.8 | %) | (8,933 | ) | 9,022 | (201.0 | %) | |
Total operating costs | 1,655,012 | 1,853,710 | 12.0 | % | 3,255,672 | 4,480,591 | 37.6 | % | ||||
Income from operations | 2,002,399 | (368,652 | ) | (118.4 | %) | 4,080,876 | 1,973,306 | (51.6 | %) | |||
Financial Result | (235,742 | ) | (311,089 | ) | 32.0 | % | (318,347 | ) | (326,183 | ) | 2.5 | % |
Share of loss of associates | (3 | ) | (83 | ) | (2666.7 | %) | (7 | ) | 3 | 142.9 | % | |
Income before income taxes | 1,766,654 | (679,824 | ) | (138.5 | %) | 3,762,522 | 1,647,126 | (56.2 | %) | |||
Income taxes | (503,081 | ) | 97,616 | (119.4 | %) | (1,101,400 | ) | (421,271 | ) | (61.8 | %) | |
Net income | 1,263,573 | (582,208 | ) | (146.1 | %) | 2,661,122 | 1,225,855 | (53.9 | %) | |||
Currency translation effect | (45,788 | ) | (66,233 | ) | 44.7 | % | (139,739 | ) | 1,351,131 | (1066.9 | %) | |
Cash flow hedges, net of income tax | - | (287,997 | ) | 100.0 | % | - | (348,105 | ) | 100.0 | % | ||
Remeasurements of employee benefit – net income tax | (146 | ) | (9,558 | ) | 6446.6 | % | (293 | ) | (9,705 | ) | 3208.0 | % |
Comprehensive income | 1,217,639 | (945,996 | ) | (177.7 | %) | 2,521,090 | 2,219,176 | (12.0 | %) | |||
Non-controlling interest | (19,763 | ) | 29,645 | 250.0 | % | (44,929 | ) | (164,109 | ) | (265.3 | %) | |
Comprehensive income attributable to controlling interest | 1,197,876 | (916,351 | ) | (176.5 | %) | 2,476,161 | 2,055,067 | (17.0 | %) | |||
The non-controlling interest corresponds to the 25.5% stake held in the Montego Bay airport by Vantage Airport Group Limited (“Vantage”). |
Exhibit E: Consolidated stockholders’ equity (in thousands of pesos):
Common Stock | Legal
Reseve |
Reserve
for Share Repurchase |
Repurchased Shares | Retained Earnings | Other comprehensive income | Total controlling interest | Non-controlling interest | Total Stockholders' Equity | ||||||||||
Balance as of January 1, 2019 | 7,777,576 | 1,345,711 | 2,983,374 | (1,733,374 | ) | 9,552,070 | 783,628 | 20,708,986 | 1,063,164 | 21,772,150 | ||||||||
Transfer of earnings | - | 246,840 | - | - | (246,840 | ) | - | - | - | - | ||||||||
Dividends declared | - | - | - | - | (4,425,346 | ) | - | (4,425,346 | ) | - | (4,425,346 | ) | ||||||
Reserve for repurchase of share | - | - | 300,000 | - | (300,000 | ) | - | - | - | - | ||||||||
Capital distribution | (1,592,494 | ) | - | - | - | - | - | (1,592,494 | ) | - | (1,592,494 | ) | ||||||
Comprehensive income: | ||||||||||||||||||
Net income | - | - | - | - | 2,600,089 | - | 2,600,089 | 61,033 | 2,661,122 | |||||||||
Foreign currency translation reserve | - | - | - | - | - | (123,636 | ) | (123,636 | ) | (16,103 | ) | (139,739 | ) | |||||
Remeasurements of employee benefit – Net | - | - | - | - | - | (293 | ) | (293 | ) | - | (293 | ) | ||||||
Balance as of June 30, 2019 | 6,185,082 | 1,592,551 | 3,283,374 | (1,733,374 | ) | 7,179,973 | 659,698 | 17,167,306 | 1,108,093 | 18,275,399 | ||||||||
Balance as of January 1, 2020 | 6,185,082 | 1,592,551 | 3,283,374 | (1,733,374 | ) | 9,940,035 | 360,504 | 19,628,172 | 1,041,271 | 20,669,443 | ||||||||
Comprehensive income: | ||||||||||||||||||
Net income | - | - | - | - | 1,227,550 | - | 1,227,550 | (1,695 | ) | 1,225,855 | ||||||||
Foreign currency translation reserve | - | - | - | - | - | 1,185,327 | 1,185,327 | 165,804 | 1,351,131 | |||||||||
Remeasurements of employee benefit – Net | - | - | - | - | - | (9,705 | ) | (9,705 | ) | - | (9,705 | ) | ||||||
Reserve for cash flow hedges – Net of income tax | - | - | - | - | - | (348,105 | ) | (348,105 | ) | - | (348,105 | ) | ||||||
Balance as of June 30, 2020 | 6,185,082 | 1,592,551 | 3,283,374 | (1,733,374 | ) | 11,167,585 | 1,188,021 | 21,683,238 | 1,205,380 | 22,888,618 | ||||||||
For presentation purposes, the 25.5% stake in Desarrollo de Concesiones Aeroportuarias, S.L. (“DCA”) held by Vantage appears in the Stockholders’ Equity of the Company as a non-controlling interest.
As a part of the adoption of IFRS, the effects of inflation on common stock recognized pursuant to Mexican Financial Reporting Standards (MFRS) through June 30, 2007 were reclassified as retained earnings because accumulated inflation recognized under MFRS is not considered hyperinflationary according to IFRS. For Mexican legal and tax purposes, Grupo Aeroportuario del Pacífico, S.A.B. de C.V., as an individual entity, will continue preparing separate financial information under MFRS. Therefore, for any transaction between the Company and its shareholders related to stockholders’ equity, the Company must take into consideration the accounting balances prepared under MFRS as an individual entity and determine the tax impact under tax laws applicable in Mexico, which requires the use of MFRS. For purposes of reporting to stock exchanges, the consolidated financial statements will continue being prepared in accordance with IFRS, as issued by the IASB.
Exhibit F: Other operating data:
2Q19 | 2Q20 | Change | 6M19 |
6M20 |
Change | |||||||
Total passengers | 12,209.3 | 1,666.2 | (86.4 | %) | 24,096.5 | 13,391.4 | (44.4 | %) | ||||
Total cargo volume (in WLUs) | 539.9 | 462.2 | (14.4 | %) | 1,079.9 | 1,015.0 | (6.0 | %) | ||||
Total WLUs | 12,749.2 | 2,128.3 | (83.3 | %) | 25,176.4 | 14,406.4 | (42.8 | %) | ||||
Aeronautical & non aeronautical services per passenger (pesos) | 289.5 | 530.3 | 83.1 | % | 293.3 | 375.6 | 28.0 | % | ||||
Aeronautical services per WLU (pesos) | 202.2 | 259.3 | 28.2 | % | 206.9 | 255.1 | 23.3 | % | ||||
Non aeronautical services per passenger (pesos) | 78.4 | 199.0 | 153.9 | % | 77.1 | 101.1 | 31.0 | % | ||||
Cost of services per WLU (pesos) | 55.3 | 302.4 | 446.6 | % | 51.7 | 95.8 | 85.4 | % | ||||
WLU = Workload units represent passenger traffic plus cargo units (1 cargo unit = 100 kilograms of cargo). |
IR Contacts: |
||
Saúl Villarreal, Chief Financial Officer | svillarreal@aeropuertosgap.com.mx | |
Alejandra Soto, IR and Financial Planning Manager | asoto@aeropuertosgap.com.mx | |
Gisela Murillo, Investor Relations | gmurillo@aeropuertosgap.com.mx / +52-33-3880-1100 ext.20294 | |
Maria Barona, i-advize Corporate Communications | mbarona@i-advize.com.mx |
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.
Grupo Aeroportuario del Pacífico, S.A.B. de C.V. | ||
(Registrant) | ||
Date: July 24, 2020 | /s/ SAÚL VILLARREAL GARCÍA | |
Saúl Villarreal García | ||
Chief Financial Officer | ||