MONTERREY, Mexico, Feb. 25, 2011 (GLOBE NEWSWIRE) -- Mexican airport operator Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., known as OMA (Nasdaq:OMAB) (BMV:OMA), reported its unaudited, preliminary results for the fourth quarter and full year 2010 today.1
During 2010, OMA's business initiatives effectively counteracted the difficult environment facing the air transport industry. These initiatives focused on maximizing regulated aeronautical revenues through promoting route development and optimizing rates, and improving the commercial offering and improving the passenger experience in order to grow non-aeronautical revenues.
OMA generated strong revenue growth for both the fourth quarter and full year 2010 results, despite the indefinite suspension of operations of Grupo Mexicana in August 2010, which dampened the recovery of air traffic volumes. Passenger traffic increased 0.6% in both the quarter and full year, while the number of flight operations decreased 1.6% in the fourth quarter and increased 5.5% in the year.
During 4Q10, OMA recognized Ps. 281 million in construction revenue and an equal amount as construction expense in accordance with accounting interpretation INIF 17 "Service Concession Contracts." For the full year, the amounts recognized as construction revenue and construction expense were Ps. 507 million.
Total revenue increased 69.2% in 4Q10 to Ps. 817 million, including the INIF 17 recognition of construction revenue. Excluding the INIF 17 effect, revenues grew 11.0%. Aeronautical revenues per passenger increased 3.8%, while non-aeronautical revenues per passenger rose 34.5%. For the full year, revenues increased 39.8%, including the INIF 17 effect, and 13.1% excluding it. Full year aeronautical revenues per passenger rose 7.6%, and non-aeronautical revenue per passenger reached Ps. 42.4, an increase of 32.4%.
Progress in increasing commercial revenues was significant. NH Terminal 2 Hotel revenues in 4Q10 almost tripled from the prior year period, and increased almost seven times during the full year. The new Monterrey Terminal B, with 2,100m2 of additional commercial space, started operations in September 2010, and contributed significantly to growth in retail leases and advertising revenues in its first full quarter of operations. The OMA Carga airfreight business grew revenues 22.0% in the quarter and 59.9% in the year, spurred by the development of the DHL cargo hub in Monterrey.
There was a net tax credit of Ps. 298 million in 4Q10 results, as the result of the re-estimation of deferred tax liabilities based on new projections that include the Master Development Plans and Maximum Rates for 2011-15 that were approved in December 2010. (See the section on taxes in the discussion of consolidated results below.) This tax credit contributed to consolidated net income for 4Q10 and for the full year, which increased 126.5% and 17.6%, respectively. On the other hand, net income for the year was adversely affected by the provision for doubtful accounts resulting from the suspension of operations of Grupo Mexicana in 3Q10.
Capital expenditures were Ps. 498 million in 4Q10, principally for the implementation of the first phase of the advanced Baggage Handling System for screening checked baggage in all our airports. For the year, capital expenditures totaled Ps. 732 million.
4Q10 Highlights
The principal operating and financial highlights for the fourth quarter are:
- Passenger traffic increased 0.6% to 2.8 million in 4Q10, and airfreight volumes increased 3.5%.
- Total revenues increased 69.2% to Ps. 817 million, including INIF 17. Excluding the effect of the adoption of INIF 17, total revenues grew 11.0% to Ps. 536 million, with a mix of 74.1% aeronautical revenues and 25.9% non-aeronautical revenues.
- Aeronautical revenues per passenger increased 3.8% to Ps. 141.3 million, led by increases in passenger charges and aeronautical services.
- Non-aeronautical revenues per passenger increased 34.5% to Ps. 49.3. Noteworthy increases included: the hotel (+191.2%), advertising (+34.1%), leases (+14.3%), restaurants (+38.6%), and OMA Carga (+22%).
- Ten new commercial spaces and a number of new passenger services opened in our airports.
- The NH T2 hotel occupancy rate reached 82% in 4Q10, 53 points above the prior year period, and hotel revenues surged 191.2%.
- Adjusted EBITDA was Ps. 227 million, an increase of 2.5%. The Adjusted EBITDA margin was 42.3%, excluding the INIF 17 effect.
- Consolidated net income increased 126.5% to Ps. 368 million. Contributing to the increase was a tax credit of Ps. 298 million largely resulting from a re-estimation of deferred tax liabilities. Earnings per share were Ps. 0.92, or US$0.59 per American Depositary Share (ADS).
- Capital expenditures were Ps. 498 million in 4Q10. Installation of the advanced Baggage Handling Systems in 11 of the 13 airports began in the fourth quarter, and the long-term financing for the baggage screening equipment was finalized.
- Employee benefits: Under IFRS, the provision for employee severance is only recorded when it generates the payment obligation or when there are formal retirement plans. As of December 31, 2010, there was a provision under MFRS for Ps. 25 million, which will be applied against results in the transition period.
- Employee bonuses: Incentives based on earnings are recognized in the period that the employee provided services when the company has a legal or constructive obligation and can estimate the amount of such bonuses. Based on the foregoing, under IFRS a provision for employee bonuses for Ps. 28 million as of the beginning of the transition period was recognized.
The complete earnings report is available at
OMA (Nasdaq:OMAB) (BMV:OMA) will hold a conference call on February 28, 2011 at 11:00 am Eastern time, 10:00 am Mexico City time.
The conference call is accessible by calling 877-941-2069 toll-free from the U.S. or +1 480-629-9713 from outside the U.S. The conference ID is 4411971. A taped replay will be available through March 7, 2011 at 877-870-5176 toll free or + 1-858-384-5517, using the same ID.
The conference call will also be available by webcast at .
(1) Unless otherwise stated, all references are to the fourth quarter of 2010 (4Q10), and all percentage changes are with respect to the same period of the prior year.
This report 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 expectations and projections about future events. Forward-looking statements may be identified by the words "believe," "expect," "anticipate," "target," 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 publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise.
CONTACT: Jose Luis Guerrero Cortes OMA, CFO +52.81.8625.4300 ext.308 jlguerrero@oma.aero Daniel Wilson Zemi Communications +1.212.689.9560 dbmwilson@zemi.com
