6-K 1 pac-6k_072519.htm CURRENT REPORT OF FOREIGN ISSUER

 

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  April 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  ☒     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): ____

 

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 SECOND QUARTER OF 2019

 

Guadalajara, Jalisco, Mexico, July 25, 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 second quarter ended June 30, 2019. 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 2Q19 vs. 2Q18

 

●The sum of aeronautical and non-aeronautical services revenues increased by Ps. 411.4 million, or 13.2%. Total revenues increased by Ps. 214.6 million, or 6.2%.

 

●Cost of services increased by Ps. 98.9 million, or 16.3%.

 

●Operating income increased by Ps. 244.0 million, or 13.9%.

 

●EBITDA increased by Ps. 282.9 million, or 13.2%. EBITDA margin (excluding the effects of IFRIC 12) increased from 68.7% in 2Q18 to 68.8% in 2Q19.

 

●Net income and comprehensive income decreased by Ps. 332.7 million, or 21.5%, mostly due to the currency translation effect.

 

 

 

 

 

 

 

 

Operating Results

 

During 2Q19, total terminal passengers at the Company’s 13 airports increased by 1,085.4 thousand passengers, or 9.8%, compared to 2Q18. Over the same period, domestic passenger traffic increased by 654.1 thousand passengers, while international passenger traffic increased by 431.3 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.

 

During 2Q19, the following routes opened:

 

Domestic Routes: 

Airline Departure Arrival Opening date Frequencies
Viva Aerobus Los Mochis Monterrey April 2, 2019 2 weekly frequencies
TAR Los Mochis Guadalajara April 3, 2019 3 weekly frequencies
Volaris Guadalajara Durango June 17, 2019 3 weekly frequencies
Viva Aerobus Hermosillo Cancún June 1, 2019 2 weekly frequencies
Viva Aerobus Los Cabos Tijuana June 7, 2019 2 weekly frequencies
Viva Aerobus Tijuana Cancún June 8, 2019 2 weekly frequencies
Viva Aerobus Tijuana Mazatlán June 8, 2019 2 weekly frequencies
Viva Aerobus Hermosillo Los Cabos June 10, 2019 2 weekly frequencies
Aeromar Puerto Vallarta Ciudad de México June 13, 2019 4 weekly frequencies
Volaris Guadalajara Queretaro June 16, 2019 3 weekly frequencies
Volaris Puerto Vallarta Queretaro June 16, 2019 2 weekly frequencies

Note: The frequency of flights on these routes is subject to change without prior notice.

 

International Routes: 

Airline Departure Arrival Opening date Frequencies
Volaris Puerto Vallarta Chicago O´Hare May 5, 2019 1 weekly frequency
Thomas Cook Montego Bay Manchester May 20, 2019 1 weekly frequency
Sun Country Montego Bay Dallas-Fort Worth May 24, 2019 2 weekly frequencies
Sun Country Los Cabos Las Vegas June 6, 2019 2 weekly frequencies
Sun Country Puerto Vallarta Las Vegas June 7, 2019 2 weekly frequencies
Volaris Aguascalientes Chicago Midway June 16, 2019 2 weekly frequencies
Volaris Puerto Vallarta Phoenix June 16, 2019 2 weekly frequencies

 

 

Note: The frequency of flights on these routes is subject to change without prior notice.

 

 

 

 

 

 

 

 

Domestic Terminal Passengers (in thousands): 

Airport 2Q18 2Q19 Change 6M18 6M19 Change
Guadalajara 2,578.0 2,674.0 3.7% 4,945.6 5,094.4 3.0%
Tijuana 1 1,388.0 1,533.7 10.5% 2,702.4 2,894.9 7.1%
Los Cabos 412.5 490.9 19.0% 797.9 885.5 11.0%
Puerto Vallarta 408.7 479.5 17.3% 747.1 831.3 11.3%
Montego Bay 2.2 2.4 8.2% 4.1 4.2 2.2%
Guanajuato 408.3 532.3 30.4% 757.5 994.3 31.3%
Hermosillo 431.8 475.0 10.0% 833.0 859.9 3.2%
Mexicali 275.2 303.4 10.2% 539.8 569.4 5.5%
La Paz 223.9 256.3 14.5% 434.0 466.4 7.4%
Morelia 85.4 115.7 35.4% 173.8 225.9 29.9%
Aguascalientes 179.9 162.3 (9.8%) 332.7 305.2 (8.3%)
Los Mochis 83.2 103.3 24.3% 166.0 187.1 12.7%
Manzanillo 22.9 25.4 10.8% 46.0 49.2 7.0%
Total 6,500.0 7,154.1 10.1% 12,479.9 13,367.7 7.1%

 1 CBX users are classified as international passengers

 

International Terminal Passengers (in thousands): 

Airport 2Q18 2Q19 Change 6M18 6M19 Change
Guadalajara 998.7 1,088.6 9.0% 1,981.1 2,076.7 4.8%
Tijuana 1 537.0 736.1 37.1% 1,066.4 1,394.2 30.7%
Los Cabos 929.5 963.1 3.6% 1,945.1 2,019.3 3.8%
Puerto Vallarta 698.5 713.7 2.2% 1,917.1 1,970.6 2.8%
Montego Bay 1,121.2 1,179.9 5.2% 2,315.3 2,516.2 8.7%
Guanajuato 163.8 173.8 6.1% 344.4 345.1 0.2%
Hermosillo 17.1 17.4 1.5% 35.4 34.5 (2.6%)
Mexicali 1.5 1.9 24.4% 2.8 3.3 17.2%
La Paz 3.0 3.1 2.9% 5.8 6.6 13.6%
Morelia 89.9 105.8 17.7% 180.4 207.1 14.8%
Aguascalientes 50.0 54.8 9.6% 92.2 99.3 7.7%
Los Mochis 1.5 1.9 23.7% 3.1 3.5 11.9%
Manzanillo 12.3 15.2 23.8% 53.4 52.3 (2.0%)
Total 4,623.9 5,055.2 9.3% 9,942.6 10,728.8 7.9%

1 CBX users are classified as international passengers

 

 

 

 

 

 

 

 

Total Terminal Passengers (in thousands): 

Airport 2Q18 2Q19 Change 6M18 6M19 Change
Guadalajara 2,578.0 2,674.0 3.7% 4,945.6 5,094.4 3.0%
Tijuana 1 1,388.0 1,533.7 10.5% 2,702.4 2,894.9 7.1%
Los Cabos 412.5 490.9 19.0% 797.9 885.5 11.0%
Puerto Vallarta 408.7 479.5 17.3% 747.1 831.3 11.3%
Montego Bay 2.2 2.4 8.2% 4.1 4.2 2.2%
Guanajuato 408.3 532.3 30.4% 757.5 994.3 31.3%
Hermosillo 431.8 475.0 10.0% 833.0 859.9 3.2%
Mexicali 275.2 303.4 10.2% 539.8 569.4 5.5%
La Paz 223.9 256.3 14.5% 434.0 466.4 7.4%
Morelia 85.4 115.7 35.4% 173.8 225.9 29.9%
Aguascalientes 179.9 162.3 (9.8%) 332.7 305.2 (8.3%)
Los Mochis 83.2 103.3 24.3% 166.0 187.1 12.7%
Manzanillo 22.9 25.4 10.8% 46.0 49.2 7.0%
Total 6,500.0 7,154.1 10.1% 12,479.9 13,367.7 7.1%

  1 CBX users are classified as international passengers

 

CBX Users (in thousands): 

Airport 2Q18 2Q19 Change 6M18 6M19 Change
Tijuana 516.5 723.6 40.1% 1,026.4 1,370.9 33.6%

 

 

 

 

 

 

 

 

Consolidated Results for the Second Quarter of 2019 (in thousands of pesos): 

   2Q18   2Q19  Change
Revenues      
Aeronautical services            2,331,424            2,577,773 10.6%
Non-aeronautical services               792,219               957,275 20.8%
Improvements to concession assets (IFRIC 12)               319,150               122,363 (61.7%)
Total revenues            3,442,794            3,657,411 6.2%
       
Operating costs      
Costs of services:               606,387               705,304 16.3%
Employee costs               223,320               228,793 2.5%
Maintenance               107,537               148,362 38.0%
Safety, security & insurance                 93,263               102,312 9.7%
Utilities                 77,829                 92,489 18.8%
Other operating expenses               104,438               133,348 27.7%
       
Technical assistance fees                 99,841               113,644 13.8%
Concession taxes               275,287               292,887 6.4%
Depreciation and amortization               386,999               425,839 10.0%
Cost of improvements to concession assets (IFRIC 12)               319,150               122,363 (61.7%)
Other income (3,245) (5,025) 54.9%
Total operating costs            1,684,419            1,655,012 (1.7%)
Income from operations            1,758,375            2,002,399 13.9%
       
Financial Result (31,188) (235,742) 655.9%
Share of loss of associates (995) (3) 99.7%
Income before income taxes             1,726,192            1,766,654 2.3%
Income taxes  (537,173) (503,081) (6.3%)
Net income             1,189,019            1,263,573 6.3%
Currency translation effect               361,175 (45,788) (112.7%)
    Remeasurements of employee benefit – net income tax                      121 (146) (220.4%)
Comprehensive income            1,550,315            1,217,639 (21.5%)
Non-controlling interest (76,630) (19,763) 74.2%
Comprehensive income attributable to controlling interest            1,473,686            1,197,876 (18.7%)

  

  2Q18 2Q19 Change
EBITDA 2,145,373 2,428,238 13.2%
Comprehensive income 1,550,315 1,217,639 (21.5%)
Comprehensive income per share (pesos) 2.7635 2.1705 (21.5%)
Comprehensive income per ADS (US dollars) 1.4386 1.1299 (21.5%)
       
Operating income margin 51.1% 54.7% 7.2%
Operating income margin (excluding IFRIC 12) 56.3% 56.6% 0.6%
EBITDA margin 62.3% 66.4% 6.5%
EBITDA margin (excluding IFRIC 12) 68.7% 68.8% 0.1%
Costs of services and improvements / total revenues 26.9% 22.6% (15.8%)
Cost of services / total revenues  (excluding IFRIC 12) 19.4% 20.0% 2.8%
       

- 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. 19.2089 per U.S. dollar (the noon buying rate on June 28, 2019, 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. 19.1250 per U.S. dollar for the three months ended June 30, 2019 was used.

 

 

 

 

 

  

 

Revenues (2Q19 vs. 2Q18)

 

●Aeronautical services revenues increased by Ps. 246.3 million, or 10.6%
●Non-aeronautical services revenues increased by Ps. 165.1 million, or 20.8%
●Revenues from improvements to concession assets decreased by Ps. 196.8 million, or 61.7%
●Total revenues increased by Ps. 214.6 million, or 6.2%

 

-Aeronautical services revenues include:

 

i.Revenues from the Mexican airports increased by Ps. 229.2 million, or 11.6%, compared to 2Q18, generated mainly by a 10.3% increase in passenger traffic, as well as higher passenger fees after adjustments for inflation.

 

ii.Revenues from the Montego Bay airport increased by Ps. 17.1 million, or 4.7%, compared to 2Q18. This was mainly due to a 5.2% increase in passenger traffic and an increase in passenger fees due to inflation, and was offset by the 1.3% appreciation of the Mexican peso against the U.S. dollar, from an average exchange rate of Ps. 19.3715 in 2Q18 to an average exchange rate of Ps. 19.1250 in 2Q19.

 

-Non-aeronautical services revenues include:

 

i.The Mexican airports contributed an increase of Ps. 156.6 million, or 23.9%, compared to 2Q18, mainly driven by an increase of Ps. 90.8 million in revenues from businesses operated by third parties. This was mainly due to the opening of commercial spaces for car rentals, food and beverage operations and retail stores at the Guadalajara, Puerto Vallarta and Tijuana airports, as well as increase in revenues from “Duty-free” stores, as a result of contract renegotiations.

Revenues from businesses operated directly by the Company increased by Ps. 56.3 million, or 26.9%, mainly due to an increase in the number of visitors at the VIP lounges as a result of the opening of two new VIP lounges in the La Paz and Puerto Vallarta airports, the opening of seven new convenience stores in the Guanajuato, Mexicali, Puerto Vallarta and Tijuana airports during 2019, and an increase in car parking revenues.

  

ii.Revenues from the Montego Bay airport in 2Q19 increased by Ps. 8.9 million, or 6.2%, mainly driven by a 7.5% increase in revenues from duty-free stores, retail stores, leasing of space, communications and financial services, and food and beverages. This increase was offset by the 1.3% appreciation of the peso against the U.S. dollar during the quarter, from an average exchange rate of Ps. 19.3715 in 2Q18 to an average exchange rate of Ps. 19.1250 in 2Q19.

 

 

 

 

 

 

 

   2Q18  2Q19 Change
Businesses operated by third parties:      
Leasing of space                54,810               61,672 12.5%
Car rentals                 73,181               92,074 25.8%
Food and beverage operations                 86,996             122,173 40.4%
Retail operations                 87,841               94,941 8.1%
Duty-free operations               110,514             129,089 16.8%
Time shares operations                 47,923               55,019 14.8%
Ground transportation                32,422               35,746 10.3%
Communications and financial services                 21,989               22,153 0.7%
Other commercial revenues                14,409               16,688 15.8%
Total              530,085             629,555 18.8%
       
Businesses operated directly by us:      
Car parking                 79,479               95,417 20.1%
Advertising                 49,887               59,941 20.2%
VIP lounges                55,563               70,906 27.6%
Convenience stores                27,267               42,167 54.6%
Total              212,197             268,431 26.5%
Recovery of costs                49,938               59,289 18.7%
Total Non-aeronautical Revenues               792,219             957,275 20.8%

Figures expressed in thousands of Mexican pesos.

 

-Revenues from improvements to concession assets1

Revenues from improvements to concession assets (IFRIC 12) decreased by Ps. 196.8 million, or 61.7%, compared to 2Q18, mainly due to a decrease in committed investments under the Master Development Program for the Mexican airports for 2019, which resulted in a decrease of Ps. 128.4 million, or 54.9%, as well as to a decline in revenues from improvements to concession assets at the Montego Bay airport of Ps. 68.4 million, or 80.2%.

 

Total operating costs decreased by Ps. 29.4 million, or 1.7%, compared to 2Q18, mainly due to cost of services comprised of the following:

 

 

[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. 

 

 

 

 

 

 

 

 

-Operating costs at the Montego Bay airport decreased by Ps. 53.3 million, or 12.5%, compared to 2Q18 mainly due to a decrease in improvements to concession assets (IFRIC 12) of Ps. 68.4 million, which was offset by an increase in cost of services of Ps. 6.0 million, or 5.6%, and an increase in depreciation and amortization of Ps. 10.6 million or 11.9%, among others.

 

-Operating costs at the Mexican airports increased by Ps. 23.9 million, or 1.9%, compared to 2Q18, mainly due to an increase in cost of services for Ps. 92.9 million, or 18.6%, higher technical assistance fees and the cost of rights over the concession assets of Ps. 32.9 million, or 14.3%, and depreciation and amortization of Ps. 28.3 million, or 9.4%. This increase was offset by a decrease in the cost of improvements to the concession assets (IFRIC 12) for Ps. 128.4 million or 54.9%.

 

The increase in cost of services was mainly due to:

 

●An increase in maintenance expenses of Ps. 40.3 million, or 46.2%, mainly aimed at the operational areas, terminal buildings, documented baggage and cleaning services, which jointly increased by Ps. 38.4 million, or 44.3%, due to the addition of square meters at the airports that recently completed their expansions, as well as for improvements in passenger service.
●An increase in other operating expenses of Ps. 30.1 million, or 33.4%, compared to 2Q18, mainly due to the increase in the reserve for doubtful accounts, cost of sales in the VIP lounges, convenience store fees and professional service fees, which jointly increased by Ps. 27.4 million, or 32.9%.
●An increase in utility costs of Ps. 15.2 million, or 28.5%, compared to 2Q18, due to higher energy prices and expansions of terminal buildings.

 

Operating margin for 2Q19 increased by 360 basis points, from 51.1% in 2Q18 to 54.7% in 2Q19. Excluding the effects of IFRIC 12, operating margin increased by 30 basis points, from 56.3% in 2Q18 to 56.6% in 2Q19. Operating income increased by Ps. 244.0 million, or 13.9%, compared to 2Q18.

 

EBITDA margin increased by 410 basis points from 62.3% in 2Q18 to 66.4% in 2Q19. Excluding the effects of IFRIC 12, EBITDA margin increased by 10 basis points from 68.7% in 2Q18 to 68.8% in 2Q19. The nominal value of EBITDA increased by Ps. 282.9 million, or 13.2%, compared to 2Q18.

 

Financial result increased by Ps. 204.6 million, from a net expense of Ps. 31.2 million in 2Q18 to a net expense of Ps. 235.8 million in 2Q19. This increase was mainly the result of:

 

-Foreign exchange rate loss of Ps. 11.1 million in 2Q19, compared to a gain of Ps. 39.9 million in 2Q18, mainly due to an 8.3% appreciation of the Mexican peso against the U.S. dollar in 2Q18, compared to a depreciation of 1.1% in 2Q19 generating an increase in foreign exchange loss of Ps. 51.0 million. The currency translation effect represented a higher loss of Ps. 407.0 million, compared to 2Q18.

 

-An increase in interest expenses of Ps. 178.1 million, or 94.1%, compared to 2Q18, mainly due to a higher debt derived from the issuance of long-term bond certificates

 

 

 

 

 

 

 

 

  (Certificados Bursatiles) for Ps. 3.0 billion, an increase in interest rates and a decline in the fair value of hedging instruments.

 

-An increase in interest income of Ps. 24.6 million, or 28.1%, mainly due to the increase in the Company’s cash position, as well as to an increase in the interest rates.

 

Comprehensive income declined by Ps. 332.7 million, or 21.5%, compared to 2Q18.

 

This decrease was mainly the result of a higher exchange rate loss resulting from the foreign exchange conversion effects of Ps. 407.0 million, or 112.7%.

 

Income before income taxes increased by Ps. 40.5 million, or 2.3% in 2Q19. During 2Q19, income taxes decreased by Ps. 34.1 million, or 6.3% compared to 2Q18. This was a result of the lower incurred tax of Ps. 52.7 million that was offset by the decline in the benefit from deferred income tax of Ps. 18.6 million, due to accumulated inflation that went from 0.12% in 2Q18 to 0.06% deflation in 2Q19.

 

 

 

 

 

 

(GRAPHIC) 

 

Consolidated results for the first half of 2019 (in thousands of pesos): 

  6M18 6M19 Change
Revenues      
Aeronautical services  4,691,925 5,209,098 11.0%
Non-aeronautical services 1,541,359 1,858,600 20.6%
Improvements to concession assets (IFRIC 12) 617,240 268,850 (56.4%)
Total revenues 6,850,524 7,336,548 7.1%
       
Operating costs      
Costs of services: 1,124,011 1,300,943 15.7%
Employee costs 395,270 423,116 7.0%
Maintenance 216,326 260,802 20.6%
Safety, security & insurance 181,226 204,443 12.8%
Utilities 137,602 165,258 20.1%
Other operating expenses 193,587 247,324 27.8%
       
Technical assistance fees 202,588 229,218 13.1%
Concession taxes 536,402 618,154 15.2%
Depreciation and amortization 771,368 847,440 9.9%
Cost of improvements to concession assets (IFRIC 12) 617,240 268,850 (56.4%)
Other income (4,843) (8,933) 84.4%
Total operating costs 3,246,765 3,255,672 0.3%
Income from operations 3,603,758 4,080,876 13.2%
       
Financial Result 18,375 (318,347) (1832.5%)
Share of loss of associates (759) (7) 99.1%
Income before income taxes 3,621,374 3,762,522 3.9%
Income taxes (1,002,876) (1,101,400) 9.8%
Net income 2,618,498 2,661,122 1.6%
Currency translation effect 28,810 (139,739) (585.0%)
    Remeasurements of employee benefit – net income tax 650 (293) (145.1%)
Comprehensive income 2,647,959 2,521,090 (4.8%)
Non-controlling interest (59,971) (44,929) 25.1%
Comprehensive income attributable to controlling interest 2,587,988 2,476,161 (4.3%)
       

 

  6M18 6M19 Change
EBITDA       4,375,125       4,928,315 12.6%
Comprehensive income       2,647,959       2,521,090 (4.8%)
Comprehensive income per share (pesos)            4.7201            4.4939 (4.8%)
Comprehensive income per ADS (US dollars)            2.4572            2.3395 (4.8%)
       
Operating income margin  52.6% 55.6% 5.7%
Operating income margin (excluding IFRIC 12) 57.8% 57.7% (0.1%)
EBITDA margin  63.9% 67.2% 5.2%
EBITDA margin (excluding IFRIC 12) 70.2% 69.7% (0.7%)
Costs of services and improvements / total revenues  25.4% 21.4% (15.8%)
Cost of services / total revenues  (excluding IFRIC 12) 18.0% 18.4% 2.1%

- 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. 19.2089 per U.S. dollar (the noon buying rate on June 28, 2019, 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. 19.1724 per U.S. dollar for the three months ended June 30, 2019 was used.

 

(GRAPHIC) 

 

 

 

(GRAPHIC) 

 

Revenues (1H19 vs 1H18)

 

●Aeronautical services revenues increased by Ps. 517.2 million, or 11.0%.

●Non-aeronautical services revenues increased by Ps. 317.2 million, or 20.6%.

●Revenues from improvements to concession assets declined by Ps. 348.4 million, or 56.4%.

●Total revenues increased by Ps. 486.0 million, or 7.1%.

 

-Aeronautical services revenues include:

 

i.Revenues from the Mexican airports increased by Ps. 440.4 million, or 11.1%, compared to 1H18, generated primarily by the 7.3% passenger traffic increase, as well as higher passenger fees due to inflation.

 

ii.Revenues from the Montego Bay airport increased by Ps. 76.8 million, or 10.4%, compared to 1H18. This was primarily due to an 8.7% increase in passenger traffic and the adjustment in passenger fees as a result of inflation and to a 0.6% depreciation of the Mexican peso against the U.S. dollar, from an average exchange rate of Ps. 19.0653 in 1H18 to an average exchange rate of Ps. 19.1724 in 1H19.

 

-Non-aeronautical services revenues include:

 

i.The Mexican airports contributed an increase of Ps. 288.1 million, or 22.6%, compared to 1H18, driven mainly by a Ps. 171.8 million increase in revenues from third-party operated businesses. This was mainly due to the opening of commercial spaces, the increase in revenues from car rentals, food and beverage operations, retail stores and timeshares at the Guanajuato, Guadalajara, Puerto Vallarta and Tijuana airports, as well as an increase in revenues from “Duty-free” stores, as a result of contract renegotiations.

 

 Revenues from businesses operated directly by the Company increased by Ps. 94.0 million or 24.3%, mainly due to an increase in the number of visitors at the VIP lounges as a result of the opening of two new VIP lounges in the La Paz and Puerto Vallarta airports, the opening of seven new convenience stores in the Guanajuato, Mexicali, Puerto Vallarta and Tijuana airports, and an increase in car parking revenues.

 

ii.Montego Bay airport revenues increased by Ps. 29.2 million, or 10.9%, compared to 1H18, mainly due to a 10.2% increase in revenues from duty-free stores, retail stores, leasing of space and food and beverages, as well as to the 0.6% depreciation of the peso versus the U.S. dollar during 1H19.

 

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   6M18  6M19 Change
Businesses operated by third parties:      
Leasing of space              112,549              124,174 10.3%
Car rentals               146,203              184,247 26.0%
Food and beverage operations               164,937              234,568 42.2%
Retail operations               169,218              186,767 10.4%
Duty-free operations               218,446              260,140 19.1%
Time shares operations                 96,825              107,846 11.4%
Ground transportation                65,543                72,747 11.0%
Communications and financial services                 40,845                43,242 5.9%
Other commercial revenues                31,526                32,943 4.5%
Total           1,046,092           1,246,674 19.2%
       
Businesses operated directly by us:      
Car parking               156,614              181,000 15.6%
Advertising                 84,462                94,868 12.3%
VIP lounges              100,649              134,518 33.7%
Convenience stores                50,984                76,282 49.6%
Total              392,710              486,668 23.9%
Recovery of costs              102,557              125,257 22.1%
Total Non-aeronautical Revenues            1,541,359           1,858,600 20.6%

-Revenues from improvements to concession assets2

Revenues from improvements to concession assets (IFRIC 12) decreased by Ps. 348.4 million, or 56.4%, compared to 1H18, mainly due to a decrease in committed investments under the Master Development Program for the Mexican airports for 2019 that resulted in a decrease in improvements to concession assets of Ps. 256.7 million, or 54.9%, and to a decline in revenues improvements to concession assets at the Montego Bay airport of Ps. 91.7 million, or 61.3%, compared to 1H18.

 

Total operating costs during 1H19 increased by Ps. 8.9 million, or 0.3%, compared to 1H18, and comprised the following:

 

 

[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.

 

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-Operating Costs at the Mexican airports increased by Ps. 22.6 million, or 0.9%, mainly due to an increase in the cost of services of Ps. 164.4 million, or 17.9%, an increase in technical assistance fees and the cost of rights to concession assets of Ps. 62.8 million, or 13.6%, and depreciation and amortization of Ps. 56.3 million, or 9.5%, all of which were offset by a decrease in improvements to concession assets (IFRIC 12) of Ps. 256.7 million, or 54.9%.

 

The increase in cost of services was explained by:

 

●Other operating expenses increased by Ps. 55.0 million or 33.1% versus 1H18, mainly due to an increase of Ps. 51.5 million, or 54.5%, in the reserve for doubtful accounts, cost of sales in VIP lounges and convenience stores and professional service fees.

 

●Maintenance costs increased by Ps. 44.5 million, or 20.6% versus 1H18, mainly due to maintenance of operating areas, terminal buildings, cleaning services and documented baggage inspection equipment, and the latest expansions to the terminal buildings.

 

●Utility costs increased by Ps. 28.2 million, or 31.6%, compared to 1H18, due to the additional square meters in terminal buildings (as a result of the expansions) and higher energy prices during 1H19.

 

●Employee costs increased by Ps. 24.4 million or 7.3%, compared to 1H18, mainly due to an increase in personnel, and salary adjustments.

 

Operating costs at the Montego Bay airport decreased by Ps. 13.7 million, or 1.7% compared to 1H18, mainly due to a decrease in improvements to concession assets (IFRIC12) of Ps. 91.7 million, which was offset by an increase in cost of services of Ps. 12.5 million, or 6.0%, an increase in the cost of concession assets rights of Ps. 45.6 million, or 16.5%, and depreciation and amortization of Ps. 19.1 million or 23.7%

 

Operating margin increased by 300 basis points from 52.6% in 1H18 to 55.6% in 1H19. Operating margin, excluding the effects of IFRIC 12, decreased by 10 basis points from 57.8% to 57.7% in 1H19. Operating income increased by Ps. 477.1 million, or 13.2%, compared to 1H18.

 

EBITDA margin increased by 330 basis points from 63.9% in 1H18 to 67.2% in 1H19. EBITDA margin, excluding the effects of IFRIC 12, decreased by 50 basis points from 70.2% in 1H18 to 69.7% in 1H19. The nominal value of EBITDA increased by Ps. 553.2 million, or 12.6%, compared to 1H18.

 

Financial result increased by Ps. 336.7 million, from a net gain of Ps. 18.4 million in 1H18 to a net loss of Ps. 318.3 million in 1H19. This increase mainly includes:

 

-The foreign exchange gain decreased from a gain of Ps. 194.7 million in 1H18 to a gain of Ps. 58.3 million in 1H19 due to a 0.6% depreciation of the Mexican peso against the U.S. dollar in 1H18 compared to an appreciation of 2.6% in 1H19, which generated a decrease in foreign exchange gain of Ps. 136.4 million. In addition, the effect in foreign currency translation effect resulted in a net loss of Ps. 168.5 million compared with 1H18.

 

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-Interest expenses increased by Ps. 250.5 million or 61.4% compared to 1H18, mainly due to an increase in debt derived from the issuance of long-term bond certificates (Certificados Bursatiles) of Ps. 3.0 billion, as well as an increase in interest rates and a decline in the fair value of hedging instruments.

 

-Interest income increased by Ps. 50.2 million or 21.7%, due to the increase in the Company’s cash position and higher interest rates.

 

Comprehensive income declined by Ps. 126.9 million, or 4.8%, compared to 1H18.

 

This decrease was mainly the result of higher exchange loss of Ps. 168.5 million.

 

Income before income taxes increased by Ps. 141.1 million, or 3.9% in 2Q19. Income taxes increased by Ps. 98.5 million, or 9.8%, due to a decline in the benefit from deferred income tax of Ps. 113.8 million and a lower inflation rate, which went from an inflation rate of 1.0% in 1H18 to an inflation of 0.4% in 1H19. This result was offset by a Ps. 15.3 million decrease in taxes incurred.

 

Statement of Financial Position

 

Total assets as of June 30, 2019 increased by Ps. 2,508.6 million compared to June 30, 2018, primarily due to the following items: (i) cash and cash equivalents of Ps. 1,944.3 million, (ii) improvements to concession assets of Ps. 809.2 million, (iii) machinery, equipment and improvements to leased buildings of Ps. 179.0 million and (iv) accounts receivable of Ps. 24.8 million. This result was offset by a decline in airport concessions of Ps. 454.3 million, due to amortization.

 

Total liabilities as of June 30, 2019 increased by Ps. 3,702.2 million compared to the same period of 2018. This increase was primarily due to the following items: (i) an increase in long-term bond certificates (Certificados Bursátiles) of Ps. 3.0 billion, (ii) dividends payable of Ps. 420.5 million, and (iii) increase in long-term bank loans of Ps. 350.5 million. These increases were offset by a decrease in short-term bank loans of Ps. 91.4 million, among others.

 

Recent Events

 

In accordance with the regulatory framework applicable to Mexican airports, on June 28, 2019, the Company presented its proposals for the Master Development Program (MDP) and for the applicable passenger fees for the 2020-2024 period to the Federal Aviation Administration (Dirección General de Aeronáutica Civil, or DGAC). Under the applicable Mexican regulatory framework, the Company must obtain approval from the DGAC for its proposals by December 31, 2019.

 

* * *

 

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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. Subject to certain conditions precedent, GAP expects to take control of the operation of the Kingston airport in the last quarter of 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.

 

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

Airport 2Q18 2Q19 Change  6M18   6M19  Change
Guadalajara            
Aeronautical services              682,897              697,161 2.1%      1,330,024      1,389,142 4.4%
Non-aeronautical services              188,018              244,078 29.8%         366,985         463,117 26.2%
Improvements to concession assets (IFRIC 12)                43,372                10,394 (76.0%)           86,744           20,788 (76.0%)
Total Revenues              914,286              951,631 4.1%      1,783,752      1,873,045 5.0%
Operating income              596,809              598,018 0.2%      1,155,787      1,188,218 2.8%
EBITDA              671,658              687,455 2.4%      1,309,872      1,362,259 4.0%
             
Tijuana            
Aeronautical services              338,521              400,004 18.2%         635,369         758,237 19.3%
Non-aeronautical services                80,625              117,233 45.4%         153,512         208,954 36.1%
Improvements to concession assets (IFRIC 12)                49,172                  5,586 (88.6%)           98,344           11,171 (88.6%)
Total Revenues              468,318              522,822 11.6%         887,225         978,362 10.3%
Operating income              276,610              318,809 15.3%         504,255         600,362 19.1%
EBITDA              321,178              372,321 15.9%         591,904         704,165 19.0%
             
Puerto Vallarta            
Aeronautical services              251,206              279,770 11.4%         599,343         660,954 10.3%
Non-aeronautical services              102,172              118,166 15.7%         213,597         247,268 15.8%
Improvements to concession assets (IFRIC 12)                  3,436                  2,972 (13.5%)             6,873             5,945 (13.5%)
Total Revenues              356,813              400,908 12.4%         819,813         914,167 11.5%
Operating income              231,960              242,091 4.4%         556,570         607,339 9.1%
EBITDA              270,428              282,693 4.5%         633,029         686,428 8.4%
             
Los Cabos            
Aeronautical services              311,211              356,629 14.6%         636,164         710,960 11.8%
Non-aeronautical services              176,231              201,824 14.5%         345,987         396,433 14.6%
Improvements to concession assets (IFRIC 12)                72,184                61,775 (14.4%)         144,368         123,550 (14.4%)
Total Revenues              559,625              620,228 10.8%      1,126,520      1,230,943 9.3%
Operating income              327,531              362,039 10.5%         667,342         739,548 10.8%
EBITDA              381,109              422,210 10.8%         773,923         856,160 10.6%
             
Montego Bay            
Aeronautical services              362,571              379,769 4.7%         741,885         818,696 10.4%
Non-aeronautical services              137,305              145,815 6.2%         268,432         297,603 10.9%
Improvements to concession assets (IFRIC 12)                85,359                16,927 (80.2%)         149,658           57,977 (61.3%)
Total Revenues              585,235              542,511 (7.3%)      1,159,974      1,174,276 1.2%
Operating income              159,182              169,775 6.7%         349,847         377,807 8.0%
EBITDA              248,596              269,869 8.6%         526,078         573,775 9.1%

 

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

             
Airport  2Q18   2Q19  Change  6M18   6M19  Change
Guanajuato            
Aeronautical services              114,833              154,357 34.4%         222,252         285,782 28.6%
Non-aeronautical services                39,139                44,241 13.0%           68,711           83,462 21.5%
Improvements to concession assets (IFRIC 12)                13,684                     817 (94.0%)           27,368             1,633 (94.0%)
Total Revenues              167,655              199,415 18.9%         318,331         370,877 16.5%
Operating income                99,024              130,734 32.0%         186,243         244,541 31.3%
EBITDA              114,190              148,596 30.1%         215,466         279,606 29.8%
             
Hermosillo            
Aeronautical services                78,298                88,219 12.7%         150,095         161,699 7.7%
Non-aeronautical services                20,473                24,422 19.3%           36,050           45,757 26.9%
Improvements to concession assets (IFRIC 12)                     780                     832 6.7%             1,560             1,664 6.7%
Total Revenues                99,551              113,474 14.0%         187,704         209,121 11.4%
Operating income                42,073                48,615 15.5%           77,044           85,910 11.5%
EBITDA                59,937                68,346 14.0%         111,912         124,613 11.3%
             
Others (1)            
Aeronautical services              191,888              221,864 15.6%         376,792         423,629 12.4%
Non-aeronautical services                48,258                61,496 27.4%           88,086         116,006 31.7%
Improvements to concession assets (IFRIC 12)                51,163                23,061 (54.9%)         102,326           46,121 (54.9%)
Total Revenues              291,309              306,421 5.2%         567,204         585,756 3.3%
Operating income                81,111                91,351 12.6%         156,372         164,712 5.3%
EBITDA              127,653              142,203 11.4%         250,036         263,909 5.5%
             
Total             
Aeronautical services           2,331,424           2,577,773 10.6%      4,691,925      5,209,098 11.0%
Non-aeronautical services              792,219              957,275 20.8%      1,541,359      1,858,600 20.6%
Improvements to concession assets (IFRIC 12)              319,150              122,363 (61.7%)         617,240         268,850 (56.4%)
Total Revenues           3,442,794           3,657,410 6.2%      6,850,524      7,336,548 7.1%
Operating income           1,814,300           1,961,431 8.1%      3,653,459      4,008,436 9.7%
EBITDA           2,194,748           2,393,692 9.1%      4,412,219      4,850,913 9.9%

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

 

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(Graphic)

 

Exhibit B: Consolidated statement of financial position as of June 30 (in thousands of pesos):  

  2018 2019 Change  %
Assets        
Current assets        
Cash and cash equivalents                8,280,070              10,224,400            1,944,330 23.5%
Trade accounts receivable - net                1,066,451                1,091,287                 24,836 2.3%
Other current assets                   215,815                   376,953               161,138 74.7%
Total current assets                9,562,336              11,692,640            2,130,304 22.3%
           
Advanced payments to suppliers                   212,254                   170,011 (42,243) (19.9%)
Machinery, equipment and improvements to leased buildings - net                1,655,031                1,834,010               178,979 10.8%
Improvements to concession assets - net              10,325,177              11,134,421               809,244 7.8%
Airport concessions - net              11,543,181              11,088,915 (454,266) (3.9%)
Rights to use airport facilities - net                   958,646                   901,973 (56,673) (5.9%)
Other acquired rights                   501,973                   489,948 (12,025) (2.4%)
Deferred income taxes                5,386,297                5,389,576                   3,279 0.1%
Other non-current assets                   261,331                   213,332 (47,999) (18.4%)
Total assets              40,406,226              42,914,825            2,508,600 6.2%
         
Liabilities         
Current liabilities                5,683,471                8,262,415            2,578,944 45.4%
Long-term liabilities              15,253,782              16,377,011            1,123,229 7.4%
Total liabilities              20,937,253              24,639,426            3,702,173 17.7%
         
Stockholders' Equity        
Common stock                7,777,576                6,185,082 (1,592,494) (20.5%)
Legal reserve                1,345,710                1,592,550               246,840 18.3%
Net income                2,562,886                2,600,089                 37,203 1.5%
Retained earnings                4,514,704                4,579,884                 65,180 1.4%
Reserve for share repurchase                 2,983,374                3,283,374               300,000 10.1%
Repurchased shares (1,733,374) (1,733,374)                         -    0.0%
Foreign currency translation reserve                   900,751                   651,985 (248,766) (27.6%)
Remeasurements of employee benefit – Net                       8,821                       7,716 (1,105) (12.5%)
Total controlling interest              18,360,448              17,167,306 (1,193,142) (6.5%)
Non-controlling interest                1,108,525                1,108,093 (432) (0.0%)
Total stockholder´s equity              19,468,973              18,275,399 (1,193,574) (6.1%)
         
Total liabilities and stockholders' equity              40,406,226              42,914,825            2,508,600 6.2%

The non-controlling interest corresponds to the 25.5% stake held in the Montego Bay airport by Vantage Airport Group Limited (“Vantage”).

 

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(Graphic)

 

Exhibit C: Consolidated statement of cash flows (in thousands of pesos): 

   2Q18   2Q19  Change  6M18   6M19  Change
Cash flows from operating activities:            
Consolidated net income                 1,189,018                 1,263,573 6.3%            2,618,498              2,661,122 1.6%
             
Postemployment benefit costs                        4,305                        2,071 (51.9%)                   4,739                     6,929 46.2%
Bad debt expense (3,139) (5,172) 64.8% (6,159) (25,087) 307.3%
Depreciation and amortization                    386,999                    425,839 10.0%               771,368                 847,440 9.9%
Lost sale of fixed assets                              -                           1,173 100.0%                         -                        2,062 100.0%
Interest expense                    190,982                    311,170 62.9%               414,307                 547,517 32.2%
Loss share of profit of associates                           995                               3 (99.7%)                      759                            7 (99.1%)
Long-term provisions                        1,080                        1,770 63.9%                   2,700                     3,390 25.6%
Income tax expense                    537,173                    503,081 (6.3%)            1,002,876              1,101,404 9.8%
Bank loan exchange rate fluctuation                    239,631 (19,176) (108.0%)                 43,814 (70,464) (260.8%)
Net loss on derivative financial instruments (36,913)                      88,164 (338.8%) (35,414)                   98,859 (379.2%)
                  2,510,132                 2,572,496 2.5%            4,817,485              5,173,179 7.4%
             
Changes in working capital:            
(Increase) decrease in            
Trade accounts receivable                        4,269                    146,456 3330.7% (62,272)                 319,498 (613.1%)
Recoverable tax on assets and other assets (400,876) (64,829) (83.8%) (383,078) (102,168) (73.3%)
Increase (decrease) in            
Concession taxes payable (143,576) (209,778) 46.1% (110,169) (150,118) 36.3%
Accounts payable (284,131) (145,152) (48.9%)                 14,007 (149,296) (1165.9%)
Cash generated by operating activities                 1,685,818                 2,299,193 36.4%            4,275,972              5,091,093 19.1%
Income taxes paid (657,043) (543,418) (17.3%) (1,157,244) (1,066,816) (7.8%)
Net cash flows provided by operating activities                 1,028,775                 1,755,775 70.7%            3,118,730              4,024,278 29.0%
             
Cash flows from investing activities:            
Machinery, equipment and improvements to concession assets (503,809) (395,736) (21.5%) (1,161,436) (844,627) (27.3%)
Cash flows from sales of machinery and equipment                           434                           332 (23.5%)                      425                        707 66.5%
Other investing activities                        9,669 (27,166) (381.0%)                   1,396 (25,574) (1932.0%)
Acquisition business                              -                           9,586 100.0%                         -                        9,586 100.0%
Net cash used by investment activities (493,706) (412,984) (16.4%) (1,159,615) (859,908) (25.8%)
             
Cash flows from financing activities:            
Dividends declared and paid non-controlling interest                              -                                 -    0.0% (126,403)                          -    (100.0%)
Capital distribution (1,250,870) (1,592,494) 27.3% (1,250,870) (1,592,494) 27.3%
Debt securities                              -                                 -    0.0%                         -                 3,000,000 100.0%
Proceeds from bank loans                      57,196                      95,862 67.6%                 57,196                   95,862 67.6%
Payments on bank loans (3,872)                              -    (100.0%) (75,933)                          -    (100.0%)
Interest paid  (147,573) (249,009) 68.7% (409,488) (546,295) 33.4%
Interest paid on lease                              -    (671) 100.0%                         -    (1,988) 100.0%
Payments of obligations for leasing                              -    (3,074) 100.0%                         -    (7,981)  
Net cash flows used in financing activities (1,345,119) (1,749,386) 30.1% (1,805,498)                 947,105 (152.5%)
             
Effects of exchange rate changes on cash held                    464,374 (25,594) (105.5%)               396,309 (38,531) (109.7%)
Net increase in cash and cash equivalents (345,677) (432,189) 25.0%               549,926              4,072,944 640.6%
Cash and cash equivalents at beginning of year                  8,625,747               10,656,588 23.5%            7,730,142              6,151,457 (20.4%)
Cash and cash equivalents at the end of year                   8,280,070               10,224,400 23.5%            8,280,070            10,224,400 23.5%

 

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

   2Q18   2Q19  Change 6M18 6M19 Change
Revenues            
Aeronautical services            2,331,424            2,577,773 10.6%           4,691,925            5,209,098 11.0%
Non-aeronautical services               792,219               957,275 20.8%           1,541,359            1,858,600 20.6%
Improvements to concession assets (IFRIC 12)               319,150               122,363 (61.7%)              617,240               268,850 (56.4%)
Total revenues            3,442,794            3,657,411 6.2%           6,850,524            7,336,548 7.1%
             
Operating costs            
Costs of services:               606,387               705,304 16.3%           1,124,011            1,300,943 15.7%
Employee costs               223,320               228,793 2.5%              395,270               423,116 7.0%
Maintenance               107,537               148,362 38.0%              216,326               260,802 20.6%
Safety, security & insurance                 93,263               102,312 9.7%              181,226               204,443 12.8%
Utilities                 77,829                 92,489 18.8%              137,602               165,258 20.1%
Other operating expenses               104,438               133,348 27.7%              193,587               247,324 27.8%
             
Technical assistance fees                 99,841               113,644 13.8%              202,588               229,218 13.1%
Concession taxes               275,287               292,887 6.4%              536,402               618,154 15.2%
Depreciation and amortization               386,999               425,839 10.0%              771,368               847,440 9.9%
Cost of improvements to concession assets (IFRIC 12)               319,150               122,363 (61.7%)              617,240               268,850 (56.4%)
Other income (3,245) (5,025) 54.9% (4,843) (8,933) 84.4%
Total operating costs            1,684,419            1,655,012 (1.7%)           3,246,765            3,255,672 0.3%
Income from operations            1,758,375            2,002,399 13.9%           3,603,758            4,080,876 13.2%
             
Financial Result (31,188) (235,742) 655.9%                18,375 (318,347) (1832.5%)
Share of loss of associates (995) (3) 99.7% (759) (7) 99.1%
Income before income taxes             1,726,192            1,766,654 2.3%           3,621,374            3,762,522 3.9%
Income taxes  (537,173) (503,081) (6.3%) (1,002,876) (1,101,400) 9.8%
Net income             1,189,019            1,263,573 6.3%           2,618,498            2,661,122 1.6%
Currency translation effect               361,175 (45,788) (112.7%)                28,810 (139,739) (585.0%)
    Remeasurements of employee benefit – net income tax                      121 (146) (220.4%)                     650 (293) (145.1%)
Comprehensive income            1,550,315            1,217,639 (21.5%)           2,647,959            2,521,090 (4.8%)
Non-controlling interest (76,630) (19,763) 74.2% (59,971) (44,929) 25.1%
Comprehensive income attributable to controlling interest            1,473,686            1,197,876 (18.7%)           2,587,988            2,476,161 (4.3%)

 The non-controlling interest corresponds to the 25.5% stake held in the Montego Bay airport by Vantage Airport Group Limited (“Vantage”).

 

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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, 2018 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 - 226,680 - - (226,680) - - - -
Reserve for repurchase of share - - 255,000 - (255,000) - - - -
Capital distribution (1,250,870) - - - - - (1,250,870) - (1,250,870)
Dividends paid non-controlling interest - - - - (4,004,886) - (4,004,886) - (4,004,886)
Comprehensive income:                  
Net income - - - - 2,562,886 - 2,562,886 55,613 2,618,499
Foreign currency translation reserve - - - - - 24,452 24,452 4,358 28,810
Remeasurements of employee benefit – Net - - - - - 650 650 - 650
Balance as of June 30, 2018 7,777,576 1,345,710 2,983,374 (1,733,374) 7,077,589 909,573 18,360,448 1,108,525 19,468,973
                   
Balance as of January 1, 2019 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
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 - - - - - (123,635) (123,635) (16,104) (139,739)
Remeasurements of employee benefit – Net - - - - - (293) (293) - (293)
Balance as of June 30, 2019 6,185,082 1,592,550 3,283,374 (1,733,374) 7,179,975 659,701 17,167,306 1,108,093 18,275,399
                   

 

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 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: 

  2Q18 2Q19 Change 6M18 6M19 Change
Total passengers 11,123.9 12,209.3 9.8% 22,422.5 24,096.5 7.5%
Total cargo volume (in WLUs) 549.2 539.9 (1.7%) 1,079.8 1,079.8 0.0%
Total WLUs 11,673.0 12,749.2 9.2% 23,502.2 25,176.4 7.1%
             
Aeronautical & non aeronautical services per passenger (pesos) 280.8 289.5 3.1% 278.0 293.3 5.5%
Aeronautical services per WLU (pesos) 199.7 202.2 1.2% 199.6 206.9 3.6%
Non aeronautical services per passenger (pesos) 71.2 78.4 10.1% 68.7 77.1 12.2%
Cost of services per WLU (pesos) 51.9 55.3 6.5% 47.8 51.7 8.0%
             

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 July 25, 2019