OMA announces Fourth Quarter and Full Year 2016 Operational and Financial Results

| Source: Grupo Aeroportuario del Centro Norte S.A.B. de C.V. Grupo Aeroportuario del Centro Norte S.A.B. de C.V.

MONTERREY, Mexico, Feb. 27, 2017 (GLOBE NEWSWIRE) -- Mexican airport operator Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., known as OMA (NASDAQ:OMAB) (BMV:OMA), today reported its unaudited, consolidated results for the fourth quarter and full year 2016.1

Fourth quarter 2016 summary

OMA generated growth in its operating indicators and solid financial results in the fourth quarter of 2016. The sum of aeronautical and non-aeronautical revenues rose 27.0%. The increase in aeronautical revenues reflects the initiatives to develop new routes and connectivity of the 13 airports, which translated into an increase of 12.5% in passenger traffic, as well as the increase in tariffs in the second quarter of 2016. Non-aeronautical revenues were noteworthy for the performance of diversification activities, principally OMA Carga, and commercial activities, principally as a result of the performance of stores and restaurants. Adjusted EBITDA rose 35.2% with an Adjusted EBITDA margin of 62.2%. Operating income rose 19.9% and net income increased 43.7%.

        
(Million Passengers and Million Pesos)4Q154Q16% Var2015 2016 % Var 
Passenger Traffic  4.4    4.9    12.5   16.9    18.8    10.9   
Aeronautical Revenues  807    1,054    30.6   3,033    3,873    27.7   
Non-Aeronautical Revenues  308    361    17.3   1,112    1,333    19.9   
Aeronautical Revenues + Non-Aeronautical Revenues  1,115    1,415    27.0   4,145    5,205    25.6   
Construction Revenues  93    154    65.8   348    326    (6.3) 
Total Revenues   1,207    1,569    29.9   4,493    5,532    23.1   
Adjusted EBITDA  651    879    35.2   2,450    3,323    35.7   
Adjusted EBITDA Margin (Adjusted EBITDA/Aeronautical Revenues + Non-Aeronautical Revenues, %)58.4%62.2% 59.1%63.8%  
Income from Operations  609    730    19.9   2,037    2,784    36.7   
Operating Margin (%)50.4%46.5% 45.3%50.3%  
Consolidated Net Income  396    569    43.7   1,237    1,877    51.7   
Net Income of Controlling Interest  396    567    43.2   1,234    1,870    51.6   
EPS* (Ps.)  1.01    1.44     3.13    4.76    
EPADS* (US$)  0.46    0.56     1.45    1.84    
MDP and Strategic Investments  196    277    41.5   739    623    (15.7) 

*Based on weighted average shares outstanding

______________________________________

1 Unless otherwise stated, all references are to the fourth quarter of 2016 (4Q16), and all percentage changes are with respect to the same period of the prior year.  The exchange rates used to convert foreign currency amounts were Ps. 20.6640 per U.S. dollar as of December 31, 2016 and Ps. 17.3398 as of December 31, 2015.

The principal results of the fourth quarter include:

  • Total terminal passenger traffic increased 12.5% to 4.9 million in 4Q16. Domestic traffic increased 13.9%, while international traffic decreased 3.8%. The Monterrey, Culiacán, Chihuahua, and Ciudad Juárez airports had the most growth.
    • Thirteen new routes opened in the quarter, including nine domestic and four international routes.
  • Aeronautical revenues increased 30.6%, principally as a result of the growth in passenger traffic and an increase in specific tariffs in 2Q16.
    • Aeronautical revenues per passenger increased 16.1% to Ps. 214.2.
  • Non-aeronautical revenues increased 17.3%, principally as an indirect result of increased passenger traffic and the performance of diversification and commercial activities.
    • Non-aeronautical revenues per passenger increased 4.2% to Ps. 73.4.
  • Adjusted EBITDA2 increased 35.2% to Ps. 879 million. The Adjusted EBITDA margin reached 62.2%, up 378 basis points.
  • Consolidated net income increased 43.7% to Ps. 569 million. Earnings were Ps. 1.44 per share, or US$ 0.56 per American Depositary Share (ADS).
  • Total Capex, major maintenance, and other smaller expenditures included in the Master Development Program (MDP) and strategic investments totaled Ps. 277 million.

2 Adjusted EBITDA excludes the non-cash maintenance provision, construction revenue, and construction expense.  OMA provides a full reconciliation of Adjusted EBITDA to Net Income in the corresponding section of this report; see also the Notes to the Financial Information.

Annual Summary

During the full year 2016, OMA generated positive operational and financial results, and set new records for passenger traffic, revenues, Adjusted EBITDA, Adjusted EBITDA margin, and consolidated net income.  Passenger traffic reached 18.8 million, a 10.9% increase compared to 2015. The growth in traffic resulted in a 27.7% increase in aeronautical revenues and a 19.9% increase in non-aeronautical revenues.  The sum of aeronautical and non-aeronautical revenues was Ps. 5,205 million, an increase of 25.6%.  During the year, 29 net new routes opened.  At the same time, OMA maintained discipline in total operating costs and expenses, which rose 11.9%. Cash flow continued to increase, with Adjusted EBITDA reaching Ps. 3,323 million (+35.7%), with an Adjusted EBITDA margin of 63.8%. Operating income grew 36.7%. The effective tax rate was 28.5%.  Consolidated net income reached Ps. 1,877 million, an increase of 51.7%.  Earnings per share were Ps. 4.76 and US$ 1.84 per ADS. In order to expand and improve infrastructure and to improve service quality in our 13 airports, a  total of Ps. 623 million was used for the Master Development Program and strategic investments.  For the full year, the return on equity reached 28.0%.

During the year, OMA continued to position itself as a leader in the area of sustainability, in its different aspects.  Certifications for workplace safety, environmental management, and social responsibility were renewed in a number of business units.  Among the principal achievements, OMA was included in the Dow Jones Sustainability Index (“DJSI”) for the second consecutive year and the Mexican Stock Exchange’s Sustainability Index (“IPC Sustentable”) for the sixth consecutive year.  The company was awarded recognition as a “Great Place to Work” for the fifth consecutive year and had the highest ranking among the 100 companies evaluated in the northeastern region of Mexico.  OMA also received certification as a Socially Responsible Company from the Mexican Center for Philanthropy for the ninth consecutive year.  In addition, the Torreón and Zihuatanejo airports received their “Civil Aerodrome Certification” from the Ministry of Communications and Transportation.  OMA was included as a constituent in the Mexican Stock Exchange’s benchmark IPC Index for the second consecutive year.

OMA’s complete earnings report is available at http://ir.oma.aero.

OMA (NASDAQ:OMAB) (BMV:OMA) will hold its 4Q16 earnings conference call on February 28, 2017 at 11 am Eastern time, 10 am Mexico City time.
 
The conference call is accessible by calling 1-888-437-9445 toll-free from the U.S. or 1-719-325-2429 from outside the U.S. The conference ID is 1273018. A taped replay will be available through March 7, 2017 at 1-844-512-2921 toll free or + 1-412-317-6671, using the same ID.
 
The conference call will also be available by webcast at http://ir.oma.aero/events.cfm.

This press release may contain forward-looking information and statements. Forward-looking statements are statements that are not historical facts. These statements are only predictions based on our current information and expectations and projections about future events. Forward-looking statements may be identified by the words “believe,” “expect,” “anticipate,” “target,” “estimate,” or similar expressions. While OMA's management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and are generally beyond the control of OMA, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to, those discussed in our most recent annual report filed on Form 20-F under the caption “Risk Factors.” OMA undertakes no obligation to update publicly its forward-looking statements, whether as a result of new information, future events, or otherwise.                                           

About OMA
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., known as OMA, operates 13 international airports in nine states of central and northern Mexico. OMA’s airports serve Monterrey, Mexico’s fourth largest metropolitan area, the tourist destinations of Acapulco, Mazatlán, and Zihuatanejo, and nine other regional centers and border cities. OMA also operates the NH Collection Hotel inside Terminal 2 of the Mexico City airport and the Hilton Garden Inn at the Monterrey airport. OMA employs over 1,000 persons in order to offer passengers and clients airport and commercial services in facilities that comply with all applicable international safety, security, and ISO 9001:2008 environmental standards.  OMA is listed on the Mexican Stock Exchange (OMA) and on the NASDAQ Global Select Market (OMAB). For more information, visit: 


            








        

            

                

                    
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