6-K 1 pag-6k_0221.htm

 

      

 

 

 

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  February 2019

 

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 offices)

 

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 o

 

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): ____

 

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

 

 

 

 

 

 

 

GRUPO AEROPORTUARIO DEL PACIFICO

ANNOUNCES RESULTS FOR THE FOURTH QUARTER OF 2018

 

 

Guadalajara, Jalisco, Mexico, February 21, 2019 – Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (NYSE: PAC; BMV: GAP) (“the Company” or “GAP”) reported its consolidated results for the quarter ended December 31, 2018. Figures are unaudited and have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

 

 

Summary of Results 4Q18 vs. 4Q17

 

·The sum of aeronautical and non-aeronautical services revenues increased by Ps. 507.4 million, or 18.1%. Total revenues increased by Ps. 670.4 million, or 21.8%.

 

·Cost of services increased by Ps. 54.3 million, or 8.3%.

 

·Operating income increased by Ps. 349.6 million, or 23.1%.

 

·EBITDA increased by Ps. 369.1 million, or 19.4%. EBITDA margin (excluding the effects of IFRIC 12) increased from 67.6% in 4Q17 to 68.4% in 4Q18.

 

·Net income and comprehensive income increased by Ps. 115.5 million, or 8.9%.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Results

 

During 4Q18, total terminal passengers in the Company’s 13 airports increased by 947.3 thousand passengers, or 9.0%, compared to 4Q17. Over the same period, domestic passenger traffic increased by 617.7 thousand passengers, while international passenger traffic increased by 329.6 thousand passengers.

 

In the traffic tables below, we have reflected the users of the Cross Border Xpress (CBX) under the international passenger numbers for the Tijuana airport as well as for the Company’s consolidated results.

 

During 4Q18, the following routes opened:

 

 

Domestic Routes:

Airline Departure Arrival Opening date Frequencies
VivaAerobus Morelia Monterrey October 2, 2018 2 weekly frequencies
Volaris Tijuana Zihuatanejo October 15, 2018 2 weekly frequencies
Volaris Tijuana Tuxtla Gutierrez October 17, 2018 2 weekly frequencies
Volaris Tijuana Huatulco October 18, 2018 2 weekly frequencies
VivaAerobus Morelia Tijuana October 26, 2018 3 weekly frequencies
TAR Hermosillo Tijuana November 8, 2018 2 weekly frequencies
Volaris Aguascalientes Mexico City November 15, 2018 1 weekly frequency
Volaris Guanajuato Juarez November 15, 2018 3 weekly frequencies
Volaris Guanajuato Los Cabos November 15, 2018 3 weekly frequencies
Volaris Guanajuato Puerto Vallarta November 15, 2018 3 weekly frequencies
Volaris Guanajuato Mexico City November 16, 2018 6 weekly frequencies
Volaris Guanajuato Merida November 16, 2018 2 weekly frequencies
Volaris Guanajuato Mexicali November 17, 2018 2 weekly frequencies
Volaris Guadalajara Puerto Escondido November 29, 2018 2 weekly frequencies
Volaris Guadalajara Tapachula December 1, 2018 3 weekly frequencies
Aeromexico Tijuana Chihuahua December 15, 2018 5 weekly frequencies
Aeromexico Tijuana Juarez December 15, 2018 5 weekly frequencies
Aeromexico Tijuana Culiacan December 15, 2018 4 weekly frequencies

Note: The frequencies and available seats on these routes are subject to change without notice.

 

 

 

 

 

 

 

 

 

  

International Routes:

Airline Departure Arrival Opening date Frequencies
Nordwind Montego Bay Moscow October 26, 2018 1 weekly frequency
United Guanajuato Chicago O´Hare October 29, 2018 1 weekly frequency
Eurowings Montego Bay Düsseldorf October 31, 2018 1 weekly frequency
WestJet Montego Bay Calgary November 3, 2018 1 weekly frequency
Southwest Los Cabos Chicago Midway November 4, 2018 3 weekly frequencies
Volaris Guanajuato Sacramento November 16, 2018 2 weekly frequencies
Volaris Guadalajara Albuquerque November 17, 2018 2 weekly frequencies
Volaris Guanajuato San Jose California November 17, 2018 2 weekly frequencies
Frontier Montego Bay Raleigh November 17, 2018 2 weekly frequencies
Volaris Guadalajara Charlotte November 22, 2018 2 weekly frequencies
Frontier Los Cabos Las Vegas December 15, 2018 1 weekly frequency
COPA Puerto Vallarta Panama City December 16, 2018 2 weekly frequencies
Swoop Montego Bay Hamilton December 16, 2018 2 weekly frequencies
Spirit Montego Bay Detroit December 20, 2018 3 weekly frequencies
Sunwing Montego Bay Sudbury December 20, 2018 1 weekly frequency
Sunwing Puerto Vallarta Quebec City December 20, 2018 1 weekly frequency
Sunwing Los Cabos Ottawa December 27, 2018 1 weekly frequency

Note: The frequencies and available seats on these routes are subject to change without notice.

 

 

 

 

 

 

 

 

 

Domestic Terminal Passengers (in thousands):

Airport 4Q17 4Q18 Change 12M17 12M18 Change
Guadalajara 2,473.7 2,687.6 8.6% 9,045.6 10,313.5 14.0%
Tijuana 1 1,282.9 1,367.5 6.6% 5,135.9 5,501.8 7.1%
Los Cabos 380.6 415.4 9.2% 1,471.6 1,672.2 13.6%
Puerto Vallarta 353.6 388.9 10.0% 1,429.4 1,605.3 12.3%
Montego Bay 2.2 1.7 (21.3%) 8.9 8.5 (4.8%)
Guanajuato 359.2 467.0 30.0% 1,307.8 1,654.3 26.5%
Hermosillo 429.1 428.4 (0.2%) 1,562.9 1,674.9 7.2%
Mexicali 243.3 305.5 25.6% 798.5 1,132.6 41.8%
La Paz 215.6 236.8 9.9% 837.6 914.9 9.2%
Aguascalientes 145.3 171.1 17.7% 577.6 676.8 17.2%
Morelia 82.9 114.1 37.7% 322.7 369.2 14.4%
Los Mochis 86.6 88.8 2.6% 342.2 338.5 (1.1%)
Manzanillo 25.7 25.2 (1.9%) 101.1 97.2 (3.8%)
Total 6,080.4 6,698.1 10.2% 22,941.7 25,959.8 13.2%

1 CBX users are classified as international passengers.

 

International Terminal Passengers (in thousands):

Airport 4Q17 4Q18 Change 12M17 12M18 Change
Guadalajara 927.9 1,012.7 9.1% 3,762.4 4,038.0 7.3%
Tijuana 1 545.7 689.5 26.3% 1,967.4 2,333.3 18.6%
Los Cabos 825.6 868.5 5.2% 3,438.2 3,576.8 4.0%
Puerto Vallarta 772.3 776.7 0.6% 3,093.2 3,161.7 2.2%
Montego Bay 1,028.1 1,076.8 4.7% 4,216.8 4,474.0 6.1%
Guanajuato 180.3 165.8 -8.0% 647.9 684.5 5.7%
Hermosillo 16.6 17.6 6.2% 64.9 68.8 5.9%
Mexicali 1.4 1.6 13.7% 5.5 5.9 7.2%
La Paz 2.6 3.2 22.0% 10.9 11.4 5.0%
Aguascalientes 43.9 47.5 8.2% 176.6 191.7 8.6%
Morelia 74.2 89.6 20.8% 296.1 360.4 21.7%
Los Mochis 1.6 1.5 (5.3%) 6.4 6.3 (1.2%)
Manzanillo 17.7 16.3 (7.6%) 80.9 75.3 (6.9%)
Total 4,437.6 4,767.1 7.4% 17,767.0 18,988.2 6.9%

1 CBX users are classified as international passengers.

 

 

 

 

 

 

Total Terminal Passengers (in thousands):

Airport 4Q17 4Q18 Change 12M17 12M18 Change
Guadalajara 3,401.6 3,700.3 8.8% 12,808.0 14,351.6 12.1%
Tijuana 1 1,828.6 2,057.0 12.5% 7,103.2 7,835.1 10.3%
Puerto Vallarta 1,206.2 1,283.9 6.4% 4,909.7 5,249.0 6.9%
Los Cabos 1,125.9 1,165.5 3.5% 4,522.6 4,767.1 5.4%
Montego Bay 1,030.2 1,078.6 4.7% 4,225.7 4,482.5 6.1%
Guanajuato 539.4 632.7 17.3% 1,955.6 2,338.8 19.6%
Hermosillo 445.6 446.0 0.1% 1,627.8 1,743.8 7.1%
Mexicali 244.7 307.2 25.6% 804.0 1,138.5 41.6%
La Paz 218.2 240.0 10.0% 848.5 926.3 9.2%
Aguascalientes 189.2 218.6 15.5% 754.2 868.5 15.2%
Morelia 157.1 203.7 29.7% 618.8 729.6 17.9%
Los Mochis 88.3 90.3 2.3% 348.5 344.8 (1.1%)
Manzanillo 43.3 41.5 (4.2%) 182.0 172.5 (5.2%)
Total 10,518.3 11,465.3 9.0% 40,708.5 44,947.9 10.4%

1 CBX users are classified as international passengers.

 

 

CBX Users (in thousands):

  4Q17 4Q18 Change 12M17 12M18 Change
CBX Users 530.8 675.4 27.2% 1,922.0 2,261.5 17.7%

 

 

 

 

 

 

 

 

 

 

 

Consolidated Results for the Fourth Quarter of 2018 (in thousands of pesos): 

   4Q17   4Q18  Change
Revenues      
Aeronautical services         2,141,338          2,463,008 15.0%
Non-aeronautical services            665,453              851,166 27.9%
Improvements to concession assets (IFRIC 12)            262,705              425,757 62.1%
Total revenues         3,069,496          3,739,931 21.8%
       
Operating costs      
Costs of services:            651,354              705,634 8.3%
Employee costs            181,638              188,514 3.8%
Maintenance            208,318              186,767 (10.3%)
Safety, security & insurance              89,158              101,706 14.1%
Utilities              70,440                93,440 32.7%
Other operating expenses            101,800              135,207 32.8%
       
Technical assistance fees              88,807              107,773 21.4%
Concession taxes            247,468              274,274 10.8%
Depreciation and amortization            386,376              405,887 5.0%
Cost of improvements to concession assets (IFRIC 12)            262,705              425,757 62.1%
Other expenses (income) (78,967) (40,708) (48.4%)
Total operating costs         1,557,743          1,878,617 20.6%
Income from operations         1,511,753          1,861,314 23.1%
       
Financial Result (231,861) (128,150) (44.7%)
    Share of profit (loss) of associates (14,829) (100) 99.3%
Income before income taxes          1,265,063          1,733,065 37.0%
Income taxes  (301,684) (537,798) 78.3%
Net income             963,379          1,195,265 24.1%
Currency translation effect            334,217              216,170 (35.3%)
    Remeasurements of employee benefit – net income tax (1,976) (304) (84.6%)
Comprehensive income         1,295,620          1,411,131 8.9%
Non-controlling interest (64,936) (48,923) 24.7%
Comprehensive income attributable to controlling interest         1,230,684          1,362,208 10.7%
       

 

  4Q17 4Q18 Change
EBITDA         1,898,129          2,267,200 19.4%
Comprehensive income         1,295,620          1,411,131 8.9%
Comprehensive income per share (pesos)              2.3095                2.5154 8.9%
Comprehensive income per ADS (US dollars)              1.1762                1.2811 8.9%
       
Operating income margin  49.3% 49.8% 1.1%
Operating income margin (excluding IFRIC 12) 53.9% 56.2% 4.3%
EBITDA margin  61.8% 60.6% (2.0%)
EBITDA margin (excluding IFRIC 12) 67.6% 68.4% 1.2%
Costs of services and improvements / total revenues  29.8% 30.3% 1.6%
Cost of services / total revenues  (excluding IFRIC 12) 23.2% 21.3% (8.3%)
       

- Net income and comprehensive income per share are 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. 19.6350 per U.S. dollar (the noon buying rate on December 31, 2018, as published by the U.S. Federal Reserve Board).

- For purposes of the consolidation of the Montego Bay airport, the average monthly exchange rate of Ps. 19.8333 per U.S. dollar for the three months ended December 31, 2018 was used.

 

 

 

 

 

 

 

 

Revenues (4Q18 vs 4Q17)

 

·Aeronautical services revenues increased by Ps. 321.7 million, or 15.0%.
·Non-aeronautical services revenues increased by Ps. 185.7 million, or 27.9%.
·Revenues from improvements to concession assets increased by Ps. 163.1 million, or 62.1%.
·Total revenues increased by Ps. 670.4 million, or 21.8%.

 

-Aeronautical services revenues include:

 

i.Revenues from the Mexican airports increased by Ps. 285.8 million, or 15.5%, compared to 4Q17, generated mainly by a 9.5% increase in passenger traffic, as well as higher passenger fees after adjustments for inflation.

 

ii.Revenues from the Montego Bay airport increased by Ps. 35.9 million, or 11.9%, compared to 4Q17. This was mainly due to a 4.7% increase in passenger traffic, an increase in passenger fees due to inflation and the 4.7% depreciation of the Mexican peso against the U.S. dollar, from an average exchange rate of Ps. 18.9349 in 4Q17 to an average exchange rate of Ps. 19.8333 in 4Q18.

 

-Non-aeronautical services revenues include:

 

i.The Mexican airports contributed an increase of Ps. 168.6 million, or 31.0%, compared to 4Q17, mainly driven by an increase of Ps. 62.5 million in revenues from businesses operated directly by the Company. This was due to a 44.5% increase in the number of visitors at the VIP lounges and an increase in car parking and advertising revenues. Revenues from businesses operated by third parties increased by Ps. 104.0 million, due to the opening of commercial spaces, mainly at the Guadalajara and Tijuana airports. Revenues in dollars from VIP lounges, timeshares, duty-free stores and car rentals rose by a combined 19.4%. Upon conversion to pesos, these revenues increased by Ps. 43.4 million, or 25.0%, as a result of the 4.7% depreciation of the average peso exchange rate versus the U.S. dollar during the quarter.

 

ii.Revenues from the Montego Bay airport increased by Ps. 17.1 million, or 14.1%, compared to 4Q17, driven mainly by an 8.4% increase in revenues from duty-free stores, retail stores, leasing of spaces and food and beverages, as well as the 4.7% of peso depreciation against the U.S. dollar during the quarter.

 

 

 

 

 

 

 

 

   4Q17  4Q18 Change
Businesses operated by third parties:      
Leasing of space               53,035              61,179 15.4%
Car rentals                57,059              89,061 56.1%
Food and beverage operations                58,806              87,411 48.6%
Retail operations                75,698              85,696 13.2%
Duty-free operations                93,519            124,625 33.3%
Timeshares operations                42,645              50,858 19.3%
Ground transportation               31,444              34,233 8.9%
Communications and financial services                17,891              21,585 20.6%
Other commercial revenues               19,173              14,852 (22.5%)
Total             449,269            569,500 26.8%
       
Businesses operated directly by us:      
Car parking                70,839              81,009 14.4%
Advertising                36,087              53,334 47.8%
VIP lounges               41,708              67,573 62.0%
Convenience stores               19,688              29,151 48.1%
Total             168,323            231,067 37.3%
Recovery of costs               47,862              50,599 5.7%
Total Non-aeronautical Revenues              665,453            851,166 27.9%

Figures expressed in thousands of Mexican pesos.

 

-Revenues from improvements to concession assets1 (IFRIC 12) increased by Ps. 163.1 million, or 62.1%, compared to 4Q17, mainly due to an increase in improvements to concession assets at the Montego Bay airport of Ps. 166.8 million, or 252.2%, compared to 4Q17. This effect was offset by a decline in committed investments under the Master Development Program for the Mexican airports for 2018, which resulted in a decrease of Ps. 3.7 million, or 1.9%, compared to 4Q17.

 

 

 

[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. 320.9 million, or 20.6%, compared to 4Q17, mainly due service costs comprised of the following:

 

-Operating Costs at the Mexican airports rose by Ps. 104.2 million, or 8.7%, mainly due to an increase in cost of services of Ps. 40.9 million, or 7.6%, depreciation and amortization of Ps. 14.4 million, as well as Ps. 41.5 million in costs for technical assistance and concession assets, which was offset by a decrease in improvements to concession assets (IFRIC 12) of Ps. 3.7 million or 1.9%. The increase in cost of services was mainly due to:

 

·Higher employee costs of Ps. 7.0 million, or 4.7%, compared to 4Q17, due to an increase in personnel count and salary adjustments.
·An increase in safety, security and insurance costs of Ps. 6.4 million, or 8.8%, compared to 4Q17, due to a higher personnel count at the airports following an increase in the number of security checkpoints in order to decrease access times.
·An increase in utility costs of Ps. 19.2 million, or 42.3%, compared to 4Q17, mainly due to higher energy prices.
·Other operating expenses increased by Ps. 28.0 million, or 31.8%, compared to 4Q17, mainly due to higher professional services fees, legal services, consulting services, cost of sales in convenience stores and reserve for doubtful accounts, which jointly increased by Ps. 24.7 million, or 29.5%.

 

-Operating costs at the Montego Bay airport increased by Ps. 216.7 million, or 54.9% compared to 4Q17, mainly due to an increase in improvements to concession assets (IFRIC 12) of Ps. 166.8 million. Increases in cost of services of Ps. 13.4 million, concession taxes of Ps. 4.3 million and depreciation and amortization of Ps. 5.1 million, and, an increase in other costs of Ps. 27.1 million due to a non-recurring income registered in 2017, also partially contributed to this increase.

 

Operating margin increased by 50 bp from 49.3% in 4Q17 to 49.8% in 4Q18. Excluding the effects of IFRIC 12, operating margin increased from 53.9% in 4Q17 to 56.2% in 4Q18. Operating income increased by Ps. 349.6 million, or 23.1%, compared to 4Q17.

 

EBITDA margin decreased by 120 bp from 61.8% in 4Q17 to 60.6% in 4Q18. The EBITDA margin, excluding the effects of IFRIC 12, increased by 80 bp from 67.6% in 4Q17 to 68.4% in 4Q18. The nominal value of EBITDA increased by Ps. 369.1 million, or 19.4%, compared to 4Q17.

 

Financial result decreased by Ps. 103.8 million, from a net expense of Ps. 231.9 million in 4Q17 to Ps. 128.1 million in 4Q18. This increase was mainly the result of:

 

-The foreign exchange loss of Ps. 221.9 million in 4Q17 compared to a gain of Ps. 10.5 million in 4Q18, mainly due to a 4.7% depreciation of the Mexican peso against the U.S. dollar in 4Q18, compared to a depreciation of 8.4% in 4Q17, thus generating an increase in foreign exchange gain of Ps. 211.4 million. This effect was offset by a decrease in net foreign exchange gain due to the foreign currency translation effect of Ps. 118.0 million compared with 4Q17.

 

 

 

 

 

-Interest expenses increased by Ps. 95.0 million, or 49.2%, compared to 4Q17, mainly due to an increase in interest rates.

 

-Interest income decreased by Ps. 12.6 million or 6.9%, due to a decline in the Company’s cash position.

 

Comprehensive income increased by Ps. 115.5 million, or 8.9%, compared to 4Q17.

 

This increase was mainly a result of an increase in income before income taxes of Ps. 468.0 million, or 37.0%, which was offset by a net exchange rate gain from the currency translation effect of Ps. 118.0 million, or 35.3%

 

Income taxes increased by Ps. 236.1 million, or 78.3%, due to a decline in the benefit from deferred income tax of Ps. 91.2 million, as well as to an increase in current tax incurred of Ps. 144.9 million.

 

 

 

 

 

 

 

Consolidated Results for the Twelve Months ended December 31, 2018 (in thousands of pesos):

   12M17   12M18  Change
Revenues      
Aeronautical services         8,280,522          9,499,154 14.7%
Non-aeronautical services         2,772,905          3,183,532 14.8%
Improvements to concession assets (IFRIC 12)         1,312,491          1,440,204 9.7%
Total revenues       12,365,918        14,122,890 14.2%
       
Operating costs      
Costs of services:         2,110,407          2,453,722 16.3%
Employee costs             663,360              773,630 16.6%
Maintenance             505,352              528,929 4.7%
Safety, security & insurance             317,023              386,079 21.8%
Utilities             278,895              334,994 20.1%
Other operating expenses             345,777              430,090 24.4%
       
Technical assistance fees             357,451              411,477 15.1%
Concession taxes             944,197          1,076,350 14.0%
Depreciation and amortization         1,443,562          1,569,637 8.7%
Cost of improvements to concession assets (IFRIC 12)         1,312,491          1,440,204 9.7%
Other expense (income)  (83,921) (73,152) (12.8%)
Total operating costs         6,084,187          6,878,237 13.1%
Income from operations         6,281,731          7,244,652 15.3%
       
Financial Result (99,389) (236,033) 137.5%
Share of profit (loss) of associates (10,620) (947) 91.1%
Income before income taxes          6,171,722          7,007,672 13.5%
Income taxes  (1,440,641) (1,869,041) 29.7%
Net income          4,731,081          5,138,631 8.6%
Currency translation effect (226,494) (103,569) (54.3%)
    Remeasurements of employee benefit – net income tax (2,602) (161) (93.8%)
Comprehensive income         4,501,985          5,034,901 11.8%
Non-controlling interest (50,326) (98,374) (95.5%)
Comprehensive income attributable to controlling interest         4,451,659          4,936,527 10.9%
       

 

 

 

  12M17 12M18 Change
EBITDA         7,725,293          8,814,289 14.1%
Comprehensive income         4,501,985          5,034,901 11.8%
Comprehensive income per share (pesos)              8.0249                8.9749 11.8%
Comprehensive income per ADS (US dollars)              4.0861                4.5709 11.9%
       
Operating income margin  50.8% 51.3% 1.0%
Operating income margin (excluding IFRIC 12) 56.8% 57.1% 0.5%
EBITDA margin  62.5% 62.4% (0.1%)
EBITDA margin (excluding IFRIC 12) 69.9% 69.5% (0.6%)
Costs of services and improvements / total revenues  27.7% 27.6% (0.4%)
Cost of services / total revenues  (excluding IFRIC 12) 19.1% 19.3% 1.3%
       

- Net income and comprehensive income per share are 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. 19.6350 per U.S. dollar (the noon buying rate on December 31, 2018, as published by the U.S. Federal Reserve Board).

- For purposes of the consolidation of the Montego Bay airport, the average monthly exchange rate of Ps. 19.2357 per U.S. dollar for the twelve months ended December 31, 2018 was used.

 

 

 

 

Revenues (12M18 vs 12M17)

 

·Aeronautical services revenues increased by Ps. 1,218.6 million, or 14.7%.
·Non-aeronautical services revenues increased by Ps. 410.6 million, or 14.8%.
·Revenues from improvements to concession assets declined by Ps. 127.7 million, or 9.7%.
·Total revenues increased by Ps. 1,757.0 million, or 14.2%.

 

-Aeronautical services revenues include:

 

i.Revenues from the Mexican airports increased by Ps. 1,089.0 million, or 15.6%, compared to 12M17, generated primarily by the 10.9% passenger traffic increase, as well as higher passenger fees due to inflation.

 

ii.Revenues from the Montego Bay airport increased by Ps. 129.6 million, or 10.0%, compared to 12M17. This was due to a 6.1% increase in passenger traffic, an adjustment in passenger fees as a result of inflation and a 1.6% depreciation of the Mexican peso against the U.S. dollar, from an average exchange rate of Ps. 18.9354 in 12M17 to an average exchange rate of Ps. 19.2357 in 12M18.

 

 

-Non-aeronautical services revenues include:

 

i.The Mexican airports contributed an increase of Ps. 363.2 million, or 16.0%, driven mainly by an increase in revenues from businesses operated by third parties of Ps. 213.4 million, while revenues from businesses operated directly by the Company increased by Ps. 151.6 million. This increase was offset by a decline in recovery of costs of Ps. 1.8 million.

 

Dollar revenues from VIP lounges, timeshares, duty-free stores and car rentals rose by a combined 16.3%. Upon conversion to pesos, these revenues increased by Ps. 121.8 million, or 18.1%.

 

ii.Montego Bay airport revenues increased by Ps. 47.4 million, or 9.5%, compared to 12M17, mainly due to a 7.8% increase in revenues, as well as to the 1.6% depreciation of the Mexican peso against the U.S. dollar in 12M18.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   12M17  12M18 Change
Businesses operated by third parties:      
Leasing of space            203,521             229,121 12.6%
Car rentals             234,780             310,254 32.1%
Food and beverage operations             276,275             336,962 22.0%
Retail operations             314,858             344,994 9.6%
Duty-free operations             397,556             468,311 17.8%
Timeshares operations             186,879             196,517 5.2%
Ground transportation            120,246             129,535 7.7%
Communications and financial services                69,899               81,747 16.9%
Other commercial revenues               92,923               56,828 (38.8%)
Total         1,896,938         2,154,267 13.6%
       
Businesses operated directly by us:      
Car parking             277,229             320,575 15.6%
Advertising             154,619             177,917 15.1%
VIP lounges            154,737             222,736 43.9%
Convenience stores               89,137             107,148 20.2%
Total            675,722             828,376 22.6%
Recovery of costs            200,245             200,889 0.3%
Total Non-aeronautical Revenues          2,772,905         3,183,532 14.8%
       

Figures expressed in thousands of Mexican pesos.

 

-Revenues from improvements to concession assets2 (IFRIC 12) increased by Ps. 127.7 million, or 9.7%, compared to 12M17, due to an increase in improvements to concession assets in the Montego Bay airport of Ps. 479.8 million compared to 12M17. This effect was offset by a 28.3% decline in committed investments under the Master Development Program for the Mexican airports in 2018, which resulted in a decrease in revenues from improvements to concession assets of Ps. 352.1 million in 12M18.

 

 

[2] 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. 794.1 million, or 13.1%, compared to 12M17, and comprised the following:

 

-Operating Costs at the Mexican airports rose by Ps. 189.7 million, or 3.9%, mainly due to an increase in the cost of services of Ps. 295.3 million, or 17.2%, depreciation and amortization of Ps. 116.0 million, as well as Ps. 126.3 million in costs for technical assistance and concession assets, which were offset by a decrease in improvements to concession assets (IFRIC 12) of Ps. 352.1 million, or 28.3%. The increase in cost of services was mainly due to:

 

·An increase in employee costs of Ps. 104.9 million, or 19.2%, due to an increase in the personnel count, annual salary raises and organizational restructuring costs.
·Maintenance costs rose by Ps. 17.7 million, or 4.1%, mainly from maintenance of operating areas, maintenance equipment and higher cleaning service costs due to an expansion of terminal buildings. This result was offset by a decline in documented baggage inspection equipment.
·An increase in safety, security and insurance costs of Ps. 57.3 million, or 22.7%, due to a higher personnel count based on a higher number of security checkpoints.
·Other operating expenses increased of Ps. 67.1 million, or 22.4%, mainly due to higher professional services fees, sales costs for the VIP lounges and reserve for doubtful accounts, which together increased by Ps. 62.6 million or 22.3%.

 

-Operating costs at the Montego Bay airport increased by Ps. 604.3 million, or 47.9% compared to 12M17, mainly due to an increase in improvements to concession assets (IFRIC 12) of Ps. 479.8 million, an increase in concession taxes of Ps. 59.9 million, or 12.4%, and an increase in cost of services of Ps. 48.0 million, or 12.1%.

 

Operating margin increased by 50 bp from 50.8% in 12M17 to 51.3% in 12M18. Operating margin, excluding the effects of IFRIC 12, increased by 30 bp from 56.8% in 12M17 to 57.1% in 12M18. Operating income increased by Ps. 962.9 million, or 15.3%, compared to 12M17.

 

EBITDA margin decreased by 10 bp from 62.5% in 12M17 to 62.4% in 12M18. EBITDA margin, excluding the effects of IFRIC 12, decreased by 40 basis points from 69.9% in 12M17 to 69.5% in 12M18. The nominal value of EBITDA increased by Ps. 1,089 million, or 14.1%.

 

Financial result increased by Ps. 136.6 million, from a net cost of Ps. 99.4 million in 12M17 to a net cost of Ps. 236.0 million in 12M18. This amount mainly includes:

 

-The foreign exchange gain increased from a gain of Ps. 99.1 million in 12M17 to a gain of Ps. 199.7 million in 12M18 due to a 4.5% appreciation of the Mexican peso against the U.S. dollar in 12M17 compared to an appreciation of 0.3% in 12M18, which generated an increase in foreign exchange gain of Ps. 100.6 million. This effect was offset by a decrease in net foreign exchange loss due to the currency translation effect of Ps. 122.9 million compared with 12M17.

 

-Interest expenses increased by Ps. 307.9 million compared to 12M17, mainly due to an increase in interest rates, as well as the increase in debt derived from the issuance of long-term bonds.

 

 

 

 

 

 

 

 

-Interest income increased by Ps. 70.7 million, due to an increase in interest rates.

 

Comprehensive income increased by Ps. 532.9 million, or 11.8%, compared to 12M17.

 

The main factor in this increase was an increase in income before income taxes of Ps. 836.0 million, or 13.5%, which was offset by a net exchange rate loss from the currency translation effect of Ps. 122.9 million, or 54.3%.

 

Income taxes increased by Ps. 428.4 million due to an increase in tax incurred of Ps. 267.9 million and a decline in deferred income tax benefits of Ps. 160.5 million. The decline in the deferred income tax benefits was mainly due a lower inflation rate, which fell from 6.8% in 12M17 to 4.8% in 12M18.

 

Statement of Financial Position

 

Total assets as of December 31, 2018 increased by Ps. 33.0 million compared to December 31,2017, primarily due to the following items: i) improvements to concession assets of Ps. 1,038.8 million, ii) machinery, equipment and improvements to leased buildings of Ps. 250.5 million and iii) client accounts receivable of Ps. 398.0 million. This result was offset by a decline in: i) cash and cash equivalents of Ps. 1,578.7 million, ii) airport facilities usage rights of Ps. 56.7 million and iii) other acquired rights of Ps. 16.7 million.

 

Total liabilities as of December 31, 2018 increased by Ps. 337.6 million compared to December 31, 2017. This increase was primarily due to: i) bank loans of Ps. 280.6 million, mainly driven by a 0.3% depreciation of the Mexican peso, ii) taxes payable of Ps. 90.8 million, iii) account receivables of Ps. 64.6 million and iv) advance payments to clients of Ps. 30.7 million. This result was offset by a decline in income taxes of Ps. 135.5 million, among other factors.

 

 

 

Recent Events

 

At year-end 2018, GAP officially submitted a draft of the Master Development Program for the 2020-2024 period to the principal users of each Mexican airport to obtain feedback on its plans to improve and expand infrastructure. According to the Concession Agreement, the Company expects aviation authorities to approve investment amounts and applicable fees contemplated for the 2020-2024 period by the end of 2019.

 

***

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

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  4Q17   4Q18  Change  12M17   12M18  Change
Guadalajara            
Aeronautical services             649,795             750,204 15.5%         2,426,289           2,824,677 16.4%
Non-aeronautical services             161,685             222,517 37.6%             645,997               796,739 23.3%
Improvements to concession assets (IFRIC 12)               40,281 (19,701) (148.9%)             326,198               110,415 (66.2%)
Total Revenues             851,759             953,020 11.9%         3,398,484           3,731,830 9.8%
Operating income             534,689             655,621 22.6%         2,072,491           2,454,759 18.4%
EBITDA             620,208             735,798 18.6%         2,367,936           2,765,641 16.8%
             
Tijuana            
Aeronautical services             310,204             362,834 17.0%         1,158,896           1,344,122 16.0%
Non-aeronautical services               71,480               93,537 30.9%             304,023               326,214 7.3%
Improvements to concession assets (IFRIC 12)                 3,313 (46,530) (1504.6%)             203,664               100,986 (50.4%)
Total Revenues             384,997             409,841 6.5%         1,666,582           1,771,323 6.3%
Operating income             211,632             277,271 31.0%             883,965           1,042,367 17.9%
EBITDA             253,015             325,496 28.6%         1,045,858           1,223,272 17.0%
             
Puerto Vallarta            
Aeronautical services             248,735             273,507 10.0%             989,137           1,088,417 10.0%
Non-aeronautical services               82,145               96,661 17.7%             371,939               399,427 7.4%
Improvements to concession assets (IFRIC 12)               40,741               30,022 (26.3%)             101,235                 40,330 (60.2%)
Total Revenues             371,622             400,190 7.7%         1,462,309           1,528,174 4.5%
Operating income             184,964             227,131 22.8%             863,209               942,551 9.2%
EBITDA             222,069             265,673 19.6%         1,005,971           1,095,781 8.9%
             
Los Cabos            
Aeronautical services             276,150             311,955 13.0%         1,111,293           1,244,106 12.0%
Non-aeronautical services             145,005             182,112 25.6%             618,468               698,891 13.0%
Improvements to concession assets (IFRIC 12)               12,342             130,404 956.6%             222,106               346,956 56.2%
Total Revenues             433,497             624,471 44.1%         1,951,865           2,289,954 17.3%
Operating income             291,654             319,275 9.5%         1,171,837           1,272,180 8.6%
EBITDA             347,117             374,877 8.0%         1,373,078           1,490,038 8.5%
             
Montego Bay            
Aeronautical services             301,906             337,812 11.9%         1,290,079           1,419,674 10.0%
Non-aeronautical services             121,850             138,971 14.1%             496,477               543,878 9.5%
Improvements to concession assets (IFRIC 12)               66,131             232,887 252.2%               66,131               545,959 725.6%
Total Revenues             489,887             709,669 44.9%         1,852,687           2,509,511 35.5%
Operating income             124,946             128,006 2.4%             590,192               642,714 8.9%
EBITDA             211,406             219,574 3.9%             935,053               997,677 6.7%
             

 

 

 

 

 

 

 

 

 

 

Exhibit A: Operating results by airport (in thousands of pesos): (continued)

 

Airport  4Q17   4Q18  Change  12M17   12M18  Change
Guanajuato            
Aeronautical services             107,820             134,119 24.4%             386,726               484,799 25.4%
Non-aeronautical services               30,913               40,694 31.6%             116,686               148,119 26.9%
Improvements to concession assets (IFRIC 12)               39,491 (24,809) (162.8%)             122,133                 16,244 (86.7%)
Total Revenues             178,224             150,005 (15.8%)             625,544               649,162 3.8%
Operating income               88,490             112,187 26.8%             312,364               408,037 30.6%
EBITDA             102,356             128,845 25.9%             365,199               469,110 28.5%
             
Hermosillo            
Aeronautical services               75,362               80,169 6.4%             272,941               306,118 12.2%
Non-aeronautical services               15,614               24,116 54.4%               62,481                 82,922 32.7%
Improvements to concession assets (IFRIC 12)               81,688               45,202 (44.7%)             174,769                 47,541 (72.8%)
Total Revenues             172,665             149,487 (13.4%)             510,191               436,581 (14.4%)
Operating income               35,039               37,608 7.3%             142,836               153,575 7.5%
EBITDA               52,908               56,740 7.2%             202,076               226,211 11.9%
             
Others (1)            
Aeronautical services             171,365             212,407 23.9%             645,162               787,242 22.0%
Non-aeronautical services               36,762               52,558 43.0%             156,833               187,340 19.5%
Improvements to concession assets (IFRIC 12) (21,282)               78,283 (467.8%)               96,256               231,771 140.8%
Total Revenues             186,845             343,248 83.7%             898,251           1,206,354 34.3%
Operating income               46,383               85,659 84.7%             205,975               313,021 52.0%
EBITDA               92,202             132,177 43.4%             381,448               500,017 31.1%
             
Total             
Aeronautical services         2,141,338         2,463,008 15.0%         8,280,522           9,499,154 14.7%
Non-aeronautical services             665,453             851,166 27.9%         2,772,905           3,183,532 14.8%
Improvements to concession assets (IFRIC 12)             262,705             425,757 62.1%         1,312,491           1,440,204 9.7%
Total Revenues         3,069,497         3,739,930 21.8%       12,365,918         14,122,890 14.2%
Operating income         1,517,797         1,842,756 21.4%         6,242,868           7,229,205 15.8%
EBITDA         1,901,281         2,239,179 17.8%         7,676,620           8,767,746 14.2%

 

(1) Others include the operating results of the Aguascalientes, La Paz, Los Mochis, Manzanillo, Mexicali and Morelia airports.

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit B: Consolidated statement of financial position as of December 31 (in thousands of pesos):

 

  2017 2018 Change  %
Assets        
Current assets        
Cash and cash equivalents             7,730,143             6,151,457 (1,578,686) (20.4%)
Trade accounts receivable - net                997,370             1,395,362                     397,992 39.9%
Other current assets                252,646                293,387                       40,741 16.1%
Total current assets             8,980,159             7,840,206 (1,139,953) (12.7%)
           
Advanced payments to suppliers                123,988                226,548                     102,560 82.7%
Machinery, equipment and improvements to leased buildings - net             1,655,688             1,906,233                     250,545 15.1%
Improvements to concession assets - net             9,944,022           10,982,860                  1,038,838 10.4%
Airport concessions - net           11,754,661           11,412,119 (342,542) (2.9%)
Rights to use airport facilities - net                986,995                930,296 (56,699) (5.7%)
Other acquired rights                514,993                498,296 (16,697) (3.2%)
Deferred income taxes             5,354,282             5,472,279                     117,997 2.2%
Other non-current assets                202,743                281,665                       78,922 38.9%
Total assets           39,517,532           39,550,502                       32,969 0.1%
         
Liabilities         
Current liabilities             2,295,147             2,172,524 (122,623) (5.3%)
Long-term liabilities           15,145,616           15,605,829                     460,213 3.0%
Total liabilities           17,440,763           17,778,352                     337,589 1.9%
         
Stockholders' Equity        
Common stock             9,028,446             7,777,576 (1,250,870) (13.9%)
Legal reserve             1,119,029             1,345,710                     226,681 20.3%
Net income             4,649,120             5,037,368                     388,248 8.4%
Retained earnings             4,352,149             4,514,704                     162,555 3.7%
Reserve for share repurchase              2,728,374             2,983,374                     255,000 9.3%
Repurchased shares (1,733,374) (1,733,374)                                 -    0.0%
Foreign currency translation reserve                876,300                775,619 (100,681) (11.5%)
Remeasurements of employee benefit – Net                     8,171                     8,009 (162) (2.0%)
Total controlling interest           21,028,215           20,708,986 (319,229) (1.5%)
Non-controlling interest             1,048,554             1,063,164                       14,610 1.4%
Total stockholder´s equity           22,076,769           21,772,150 (304,619) (0.1%)
         
Total liabilities and stockholders' equity           39,517,532           39,550,502                       32,969 0.1%
         

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):

   4Q17   4Q18  Change  12M17   12M18  Change
Cash flows from operating activities:            
Consolidated net income                    963,378                  1,195,265 24.1%           4,731,081          5,138,631 8.6%
             
Postemployment benefit costs                        4,172 (7,018) (268.2%)                16,688                  7,465 (55.3%)
Bad debt expense                        1,644 (11,644) (808.3%)                      866 (15,131) (1846.7%)
Depreciation and amortization                    386,376                      405,887 5.0%           1,443,562          1,569,637 8.7%
Lost sale of fixed assets                               -                             5,945 100.0%                          -                     5,554 100.0%
Interest expense                    184,006                      264,344 43.7%              600,813              896,165 49.2%
Loss (gain) share of profit of associates                      14,830                              100 (99.3%)                10,620                      947 (91.1%)
Long-term provisions                        1,614 (7,510) (565.3%)                   6,480 (2,650) (140.9%)
Income tax expense                    301,684                      537,798 78.3%           1,440,641          1,869,041 29.7%
Bank loan exchange rate fluctuation                    189,795                      132,552 (30.2%) (172,849)                10,827 (106.3%)
Net loss on derivative financial instruments (69,438) (3,610) (94.8%) (34,361) (29,643) (13.7%)
                 1,978,061                  2,512,110 27.0%           8,043,543          9,450,843 17.5%
             
Changes in working capital:            
(Increase) decrease in            
Trade accounts receivable (186,195) (391,157) 110.1% (394,746) (383,361) (2.9%)
Recoverable tax on assets and other assets                      32,368                        60,340 86.4%                   9,275                93,827 911.6%
Increase (decrease) in            
Concession taxes payable                    128,994                      131,954 2.3%                55,422                43,672 (21.2%)
Accounts payable (296,601)                      132,779 (144.8%)              275,573              294,070 6.7%
Cash generated by operating activities                1,656,627                  2,446,026 47.7%           7,989,068          9,499,050 18.9%
Income taxes paid (372,898) (591,249) 58.6% (1,820,363) (2,263,432) 24.3%
Net cash flows provided by operating activities                1,283,729                  1,854,777 44.5%           6,168,704          7,235,619 17.3%
             
Cash flows from investing activities:            
Machinery, equipment and improvements to concession assets (531,697) (808,399) 52.0% (1,923,891) (2,501,656) 30.0%
Cash flows from sales of machinery and equipment (23)                          6,156 (26865.2%)                          -                     6,604 100.0%
Other investing activities                               -    (7,023) 100.0%                          -    (15,459) 100.0%
Acquisition business (2,849)                                 -    (100.0%) (14,686)                         -    (100.0%)
Equity reimbursement of associate                               -    (39,900) 100.0%                          -    (39,900) 100.0%
Net cash used by investment activities (534,569) (849,166) 58.9% (1,938,578) (2,550,411) 31.6%
Cash flows from financing activities:            
Dividends declared and paid (1,503,146) (2,002,443) 33.2% (3,006,292) (4,004,886) 33.2%
Dividends declared and paid non-controlling interest                               -    (2,845) 100.0%                          -    (274,686) 100.0%
Capital distribution                               -                                    -    0.0% (1,750,167) (1,250,870) (28.5%)
Debt securities                2,300,000                                 -    (100.0%)           3,800,000                         -    (100.0%)
Proceeds from bank loans                               -                         196,015 100.0%                          -                 534,807 100.0%
Payments on bank loans (4,461) (2,611) (41.5%) (151,724) (252,095) 66.2%
Interest paid  (101,068) (178,274) 76.4% (579,133) (903,728) 56.0%
Interest paid on lease                               -    (3,734) 0.0%                          -    (3,734) 100.0%
Payments of obligations for leasing                               -    (11,504) 100.0%                          -    (11,504) 0.0%
Net cash flows used in financing activities                    691,325 (2,005,396) (390.1%) (1,687,316) (6,166,695) 265.5%
             
Effects of exchange rate changes on cash held                    147,718                          9,665 (93.5%) (806) (97,200) 11959.6%
Net increase in cash and cash equivalents                1,588,203 (990,120) (162.3%)           2,542,005 (1,578,686) (162.1%)
Cash and cash equivalents at beginning of year                 6,141,940                  7,141,575 16.3%           5,188,138          7,730,143 49.0%
Cash and cash equivalents at the end of year                  7,730,143                  6,151,457 (20.4%)           7,730,143          6,151,457 (20.4%)
             

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit D: Consolidated statements of profit or loss and other comprehensive income (in thousands of pesos):

   4Q17   4Q18  Change  12M17   12M18  Change
Revenues            
Aeronautical services         2,141,338          2,463,008 15.0%         8,280,522          9,499,154 14.7%
Non-aeronautical services            665,453              851,166 27.9%         2,772,905          3,183,532 14.8%
Improvements to concession assets (IFRIC 12)            262,705              425,757 62.1%         1,312,491          1,440,204 9.7%
Total revenues         3,069,496          3,739,932 21.8%       12,365,918        14,122,890 14.2%
             
Operating costs            
Costs of services:            651,354              705,634 8.3%         2,110,407          2,453,722 16.3%
Employee costs            181,638              188,514 3.8%             663,360              773,630 16.6%
Maintenance            208,318              186,767 (10.3%)             505,352              528,929 4.7%
Safety, security & insurance              89,158              101,706 14.1%             317,023              386,079 21.8%
Utilities              70,440                93,440 32.7%             278,895              334,994 20.1%
Other operating expenses            101,800              135,207 32.8%             345,777              430,090 24.4%
             
Technical assistance fees              88,807              107,773 21.4%             357,451              411,477 15.1%
Concession taxes            247,468              274,274 10.8%             944,197          1,076,350 14.0%
Depreciation and amortization            386,376              405,887 5.0%         1,443,562          1,569,637 8.7%
Cost of improvements to concession assets (IFRIC 12)            262,705              425,757 62.1%         1,312,491          1,440,204 9.7%
Other expense (income)  (78,967) (40,708) (48.4%) (83,921) (73,152) (12.8%)
Total operating costs         1,557,743          1,878,617 20.6%         6,084,187          6,878,237 13.1%
Income from operations         1,511,753          1,861,314 23.1%         6,281,731          7,244,652 15.3%
             
Financial Result (231,861) (128,150) (44.7%) (99,389) (236,033) 137.5%
Share of profit (loss) of associates (14,829) (100) 99.3% (10,620) (947) 91.1%
Income before income taxes          1,265,063          1,733,065 37.0%         6,171,722          7,007,672 13.5%
Income taxes  (301,684) (537,798) 78.3% (1,440,641) (1,869,041) 29.7%
Net income             963,379          1,195,265 24.1%         4,731,081          5,138,631 8.6%
Currency translation effect            334,217              216,170 (35.3%) (226,494) (103,569) (54.3%)
    Remeasurements of employee benefit – net income tax (1,976) (304) (84.6%) (2,602) (161) (93.8%)
Comprehensive income         1,295,620          1,411,131 8.9%         4,501,985          5,034,901 11.8%
Non-controlling interest (64,936) (48,923) 24.7% (50,326) (98,374) (95.5%)
Comprehensive income attributable to controlling interest         1,230,684          1,362,208 10.7%         4,451,659          4,936,527 10.9%
             

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, 2017          10,778,613               960,943            2,683,374 (1,733,374)            7,561,527            1,081,931          21,333,013            1,071,554          22,404,567
Transfer of earnings                            -                  158,086                           -                              -    (158,086)                           -                              -                              -                              -   
Dividends declared                           -                              -                              -                              -    (3,006,292)                           -    (3,006,292)                           -    (3,006,292)
Reserve for repurchase of share                           -                              -                     45,000                           -    (45,000)                           -                              -                              -                              -   
Capital distribution (1,750,167)                           -                              -                              -                              -                              -    (1,750,167)                           -    (1,750,167)
Dividends paid
non-controlling interest		                           -                              -                              -                              -                              -                              -                              -    (73,326) (73,326)
Comprehensive income:                  
Net income                            -                              -                              -                              -               4,649,120                           -               4,649,120                  81,961            4,731,081
Foreign currency translation reserve                           -                              -                              -                              -                              -    (194,859) (194,859) (31,635) (226,494)
Remeasurements of employee benefit – Net                           -                              -                              -                              -                              -    (2,600) (2,600)                           -    (2,600)
Balance as of December 31, 2017            9,028,446            1,119,029            2,728,374 (1,733,374)            9,001,269               884,471          21,028,215            1,048,554          22,076,769
Transfer of earnings                            -                  226,681                           -                              -    (226,681)                           -                              -                              -                              -   
Dividends declared                           -                              -                              -                              -    (4,004,886)                           -    (4,004,886)                           -    (4,004,886)
Reserve for repurchase of share                           -                              -                  255,000                           -    (255,000)                           -                              -                              -                              -   
Capital distribution (1,250,870)                           -                              -                              -                              -                              -    (1,250,870)                           -    (1,250,870)
Dividends declared
non-controlling interest		                           -                              -                              -                              -                              -                              -                              -    (83,764) (83,764)
Comprehensive income:                  
Net income                            -                              -                              -                              -               5,037,368                           -               5,037,368               101,263            5,138,631
Foreign currency translation reserve                           -                              -                              -                              -                              -    (100,680) (100,680) (2,889) (103,569)
Remeasurements of employee benefit – Net                           -                              -                              -                              -                              -    (161) (161)                           -    (161)
Balance as of December 31, 2018            7,777,576            1,345,710            2,983,374 (1,733,374)            9,552,072               783,628          20,708,986            1,063,164          21,772,150
                   

 

  

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. In addition, DCA holds a 14.77% stake in the Santiago airport in Chile, the results of which are recognized through the equity method in the share of profit (loss) of associates.

 

As a part of the adoption of IFRS, the effects of inflation on common stock recognized pursuant to Mexican Financial Reporting Standards (MFRS) through December 31, 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:

 

  4Q17 4Q18 Change 12M17 12M18 Change
Total passengers      10,518.3      11,465.5 9.0%        40,708.5        44,947.9 10.4%
Total cargo volume (in WLUs)            549.3            613.0 11.6%          2,098.3          2,213.0 5.5%
Total WLUs      11,067.4      12,078.4 9.1%        42,807.3        47,160.9 10.2%
             
Aeronautical & non aeronautical services per passenger (pesos)            266.9            289.1 8.3%             271.5             282.2 3.9%
Aeronautical services per WLU (pesos)            193.5            203.9 5.4%             193.4             201.4 4.1%
Non aeronautical services per passenger (pesos)              63.3              74.2 17.3%                68.1                70.8 4.0%
Cost of services per WLU (pesos)              58.9              58.4 (0.7%)                49.3                52.0 5.5%

WLU = Workload units represent passenger traffic plus cargo units (1 cargo unit = 100 kilograms of cargo).

 

 

* * *

 

 

 

 

 

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.
   
  By: /s/ SAÚL VILLARREAL GARCÍA
Name: Saúl Villarreal García
Title:   Chief Financial Officer

 

Date February 21, 2019