Grupo Aeroportuario del Pacifico Announces Results for the Third Quarter of 2021

GlobeNewsWire
Thursday, October 28, 2021 at 12:35am UTC

GUADALAJARA, Mexico, Oct. 27, 2021 (GLOBE NEWSWIRE) -- Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (NYSE: PAC; BMV: GAP) (“the Company” or “GAP”) reported its consolidated results for the third quarter ended September 30, 2021 (3Q21) (at the end of this report, tables are presented comparing passenger traffic and consolidated results for 2021 compared to 2019, in order to illustrate the recovery of these metrics and their trend). Figures are unaudited and have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

COVID-19 Impact

During the nine months ended September 30, 2021 (9M21), passenger traffic increased 57.9% as compared to the same period of 2020 and decreased 16.1% as compared to 2019, demonstrating a better-than-expected recovery, despite continuing restrictions on international travel. The Canadian Government reopened non-essential flights beginning on September 7 for passengers meeting certain eligibility requirements including being fully vaccinated and presenting a negative COVID-19 PCR test. For its part, the United States Government announced that beginning in November it would begin gradually reopening land-border crossings to fully vaccinated individuals, this could bring a positive result for the Tijuana airport.

Company measures during 3Q21:

  • The Company continued supporting commercial clients during the quarter by granting discounts on guaranteed minimum rent amounts in accordance with the percentage decrease in passenger traffic at each airport as compared to 3Q19, while maintaining our revenue share. With regards to support for the airlines, the Company continued its incentive program in accordance with the reactivation of routes and frequencies that were held prior to the pandemic.
  • Operating cost control measures were maintained; however, because of the trend in passenger traffic during 3Q21, we have gradually increased certain costs such as maintenance, security, personnel, cleaning services, among others related with the quality and passenger experience.

Impact of COVID-19 on the Company’s Financial Position:

During 3Q21, results were significantly better as compared to 3Q20. The Company generated positive EBITDA of Ps. 3,098.4 million as a result of a 72.5% increase in total revenues and an increase in cost of services of 16.8%.

In 3Q21, operating activities continued generating positive cash flow. The Company reported a financial position of cash and cash equivalents as of September 30, 2021, of Ps. 10,650.8 million (30.0% lower than the 3Q20 balance). During 3Q21, the Company made a capital reduction payment of Ps. 7.80 per share outstanding for a total of Ps. 4,014.7 million and a maturity payment on the “GAP16” debt securities of Ps. 1,500.0 million from the proceeds of the issuance of debt securities during 2Q21. Additionally, Ps. 1,151.3 million in share repurchases were made during 3Q21.

In 3Q21, the Company performed an assessment of the portfolio risk of our airlines and commercial clients in terms of liquidity. Because of this assessment, the Company recognized a reserve provision of Ps. 11.6 million for expected credit losses in costs of operation.

During 3Q21, the Company continued evaluating the possible adverse impacts of the pandemic on its financial condition and operating results. The Company also reviewed key indicators and impairment tests of significant long-term assets, expected credit losses and recovery of assets due to deferred taxes. In this evaluation, the Company reviewed financial results for the short, medium, and long term, concluding that a significant deterioration of the Company’s assets is not expected. As such, the Company does not foresee a business interruption or closing operations at any of its airports. However, the Company cannot ensure that the negative effect of the pandemic will continue decreasing in the coming quarter, nor can it ensure that local and global economic conditions will improve. The Company can also not predict the availability of financing, or what general credit conditions will be. The Company will continue to monitor the pandemic’s adverse effects on the results of operations and will continue informing the market in a timely manner regarding future material updates on airport operations and the measures adopted for preserving liquidity and ensuring business continuity.

Summary of Results 3Q21 vs. 3Q20 (and 3Q19 for purposes of illustrating the recovery trend):

  • The sum of aeronautical and non-aeronautical services revenues increased by Ps. 2,382.9 million, or 120.9% (Ps. 835.8 million, or 23.8%, as compared to 3Q19). Total revenues increased by Ps. 2,224.7 million, or 72.5% (Ps. 977.4 million, or 22.6%, as compared to 3Q19).

  • Cost of services increased by Ps. 109.1 million, or 16.8% (cost of services increased Ps. 89.0 million, or 13.3%, as compared to 3Q19).

  • Income from operations increased by Ps. 1,994.2 million, or 340.2% (Ps. 578.0 million, or 28.9%, as compared to 3Q19).

  • EBITDA increased by Ps. 2,005.2 million, or 183.4% (Ps. 656.4 million, or 26.9%, as compared to 3Q19), going from Ps. 1,093.2 million in 3Q20 to Ps. 3,098.4 million in 3Q21. EBITDA margin (excluding the effects of IFRIC-12) increased from 55.6% in 3Q20 to 71.3% in 3Q21 (EBITDA margin (excluding the effects of IFRIC-12) was 69.5% in 3Q19).

  • Net comprehensive income increased Ps. 1,743.0 million, or 641.5% (Ps. 558.7 million, or 38.4%, as compared to 3Q19), from Ps. 271.7 million in 3Q20 to Ps. 2,014.7 million in 3Q21.

Passenger Traffic

During 3Q21, total passengers at the Company’s 14 airports increased by 6,010.9 thousand passengers, an increase of 105.1%, compared to 3Q20 (total passengers decreased by 133.9 thousand passengers, or 1.1%, as compared to 3Q19). During 3Q21, the following new routes were opened:

National:

AirlineDepartureArrivalOpening dateFrequencies
AeromarAguascalientesMonterreyJuly 1, 20212 weekly frequencies
AeromarLa PazMazatlánJuly 2, 20213 weekly frequencies

 

Note: Frequencies can vary without prior notice.

International:

AirlineDepartureArrivalOpening dateFrequencies
SpiritPuerto VallartaDallas Fort WorthJuly 1, 20213 weekly frequencies
SpiritPuerto VallartaHoustonJuly 1, 20213 weekly frequencies
SpiritPuerto VallartaLos ÁngelesJuly 1, 20217 weekly frequencies

Note: Frequencies can vary without prior notice.

Domestic Terminal Passengers – 14 airports (in thousands):

Airport3Q203Q21Change9M209M21Change
Guadalajara1,260.02,246.878.3%3,990.35,998.250.3%
Tijuana *1,211.01,837.251.7%3,091.35,021.262.4%
Los Cabos305.8558.082.5%784.61,445.484.2%
Puerto Vallarta230.7540.6134.3%632.51,294.2104.6%
Guanajuato241.5401.866.4%722.01,082.750.0%
Montego Bay0.00.00.0%1.00.0(100.0%)
Hermosillo194.5390.0100.5%649.11,008.355.4%
Mexicali151.7300.998.4%475.5764.160.7%
Morelia97.3138.442.3%269.2394.146.4%
La Paz127.1237.486.8%374.1635.169.7%
Aguascalientes87.7162.385.1%245.3404.765.0%
Kingston0.00.3100.0%1.31.0(26.5%)
Los Mochis38.389.4133.6%135.7252.085.8%
Manzanillo9.220.8126.7%34.361.078.1%
Total3,954.76,924.075.1%11,406.218,362.161.0%

*CBX users are classified as international passengers.

International Terminal Passengers – 14 airports (in thousands):

Airport3Q203Q21Change9M209M21Change
Guadalajara528.41,098.9108.0%1,646.22,643.260.6%
Tijuana *382.1738.593.3%1,207.11,901.157.5%
Los Cabos284.2944.3232.3%1,259.42,462.195.5%
Puerto Vallarta118.5529.7347.1%1,229.81,457.918.5%
Guanajuato68.7198.5189.2%233.8447.391.4%
Montego Bay174.5799.0357.9%1,324.11,760.633.0%
Hermosillo8.130.7280.7%28.776.6166.5%
Mexicali0.31.8419.0%1.63.6120.1%
Morelia53.2116.1118.1%162.1292.980.7%
La Paz0.95.4483.7%4.713.7191.7%
Aguascalientes22.663.4180.2%77.9152.095.0%
Kingston119.3268.0124.7%494.4566.814.6%
Los Mochis0.33.1874.1%1.67.1329.7%
Manzanillo3.08.2170.5%32.629.7(8.9%)
Total1,764.24,805.8172.4%7,704.111,814.553.4%

*CBX users are classified as international passengers.

Total Terminal Passengers – 14 airports (in thousands):

Airport3Q203Q21Change9M209M21Change
Guadalajara1,788.43,345.787.1%5,636.58,641.553.3%
Tijuana *1,593.12,575.761.7%4,298.46,922.361.0%
Los Cabos590.01,502.3154.6%2,044.03,907.591.2%
Puerto Vallarta349.21,070.3206.5%1,862.32,752.147.8%
Guanajuato310.1600.393.6%955.81,530.060.1%
Montego Bay174.5799.0357.9%1,325.11,760.632.9%
Hermosillo202.5420.7107.7%677.81,084.960.1%
Mexicali152.0302.799.2%477.2767.860.9%
Morelia150.5254.569.1%431.3687.059.3%
La Paz128.0242.889.7%378.8648.871.3%
Aguascalientes110.3225.7104.6%323.2556.772.2%
Kingston119.3268.3124.9%495.7567.714.5%
Los Mochis38.692.5139.7%137.3259.188.7%
Manzanillo12.229.0137.6%66.890.735.7%
Total5,718.911,729.8105.1%19,110.230,176.657.9%

*CBX users are classified as international passengers.

CBX Users (in thousands):

Airport3Q203Q21Change9M209M21Change
Tijuana380.3725.590.8%1,198.01,878.256.8%

Consolidated Results for the Third Quarter of 2021 (in thousands of pesos):

 3Q203Q21Change
Revenues   
Aeronautical services1,526,645 3,316,240 117.2%
Non-aeronautical services444,126 1,037,416 133.6%
Improvements to concession assets (IFRIC-12)1,097,300 939,145 (14.4%)
Total revenues3,068,071 5,292,801 72.5%
    
Operating costs  
Costs of services:650,245 759,323 16.8%
Employee costs248,704 276,236 11.1%
Maintenance83,742 136,477 63.0%
Safety, security & insurance108,553 124,716 14.9%
Utilities101,137 111,739 10.5%
Other operating expenses108,109 110,155 1.9%
    
Technical assistance fees58,254 146,706 151.8%
Concession taxes176,469 353,984 100.6%
Depreciation and amortization506,982 518,005 2.2%
Cost of improvements to concession assets (IFRIC-12)1,097,300 939,145 (14.4%)
Other (income)(7,387)(4,735)(35.9%)
Total operating costs2,481,863 2,712,428 9.3%
Income from operations586,209 2,580,373 340.2%
Financial Result(241,200)(214,047)(11.3%)
Income before income taxes 345,009 2,366,325 585.9%
Income taxes7,432 (586,599)7992.9%
Net income 352,441 1,779,726 405.0%
Currency translation effect(127,539)60,978 (147.8%)
 Cash flow hedges, net of income tax58,447 164,213 181.0%
Remeasurements of employee benefit – net income tax(11,633)9,777 184.0%
Comprehensive income 271,716 2,014,694 641.5%
Non-controlling interest55,306 (45,769)(182.8%)
Comprehensive income attributable to controlling interest327,021 1,968,925 502.1%
    
    
 3Q203Q21Change
EBITDA1,093,190 3,098,378 183.4%
Comprehensive income271,716 2,014,694 641.5%
Comprehensive income per share (pesos)0.5170 3.9143 657.1%
Comprehensive income per ADS (US dollars)0.2514 1.9036 657.1%
    
Operating income margin19.1%48.8%155.2%
Operating income margin (excluding IFRIC-12)29.7%59.3%99.3%
EBITDA margin35.6%58.5%64.3%
EBITDA margin (excluding IFRIC-12)55.6%71.3%28.2%
Costs of services and improvements / total revenues57.0%32.1%(43.7%)
Cost of services / total revenues (excluding IFRIC-12)33.0%17.4%(47.1%)
    

- Net income and comprehensive income per share for 3Q21 were calculated based on 514,705,326 shares outstanding as of September 30, 2021, and for 3Q20 were calculated based on 525,575,547 shares outstanding as of September 30, 2020. U.S. dollar figures presented were converted from pesos to U.S. dollars at a rate of Ps. 20.5620 per U.S. dollar (the noon buying rate on September 30, 2021, as published by the U.S. Federal Reserve Board).
- For purposes of the consolidation of the Montego Bay and Kingston airports, the average three-month exchange rate of Ps. 20.0092 per U.S. dollar for the three months ended September 30, 2021, was used.

Revenues (3Q21 vs. 3Q20)

  • Aeronautical services revenues increased by Ps. 1,789.6 million, or 117.2%.
  • Non-aeronautical services revenues increased by Ps. 593.3 million, or 133.6%.
  • Revenues from improvements to concession assets decreased by Ps. 158.2 million, or 14.4%.
  • Total revenues increased by Ps. 2,224.7 million, or 72.5%.
  • The change in aeronautical services revenues was composed primarily of the following factors:

    1. Revenues at the Company’s Mexican airports increased by Ps. 1,497.6 million or 110.5% compared to 3Q20, mainly as a result of the 96.5% increase in passenger traffic and the adjustment in maximum rates.

    2. Revenues from the Montego Bay airport increased by Ps. 225.5 million, or 274.5%, compared to 3Q20. This was mainly due to the 357.9% increase in passenger traffic. The passenger traffic increase was partially offset by the 9.5% appreciation of the peso versus the U.S. dollar during 3Q21, which went from an average exchange rate of Ps. 22.1055 in 3Q20 to Ps. 20.0092 in 3Q21.

    3. Revenues from the Kingston airport increased by Ps. 66.4 million, or 74.4% compared to 3Q20, mainly due to a 124.9% increase in passenger traffic. The appreciation of the peso versus the dollar partially offset the increase in passenger traffic.

  • The change in non-aeronautical services revenues was composed primarily of the following factors :

    1. The Company’s revenues from the Mexican airports increased by Ps. 499.2 million, or 135.7%, compared to 3Q20. Revenues from businesses operated by third parties increased by Ps. 353.7 million. This was mainly due to the recovery of passenger traffic that resulted in the gradual phase-out of discounts to our tenants. The business lines that increased the most were food and beverage, duty-free stores, retail, car rentals, time shares and ground transportation, which jointly increased by Ps. 329.3 million, or 180.0%. Revenues from businesses operated directly by the Company increased by Ps. 137.0 million, or 145.0%, while the recovery of costs increased by Ps. 8.4 million, or 30.2%.

    2. Revenues from the Montego Bay airport increased by Ps. 72.4 million, or 138.8%, compared to 3Q20. Revenues in U.S. dollars increased by US$ 3.9 million, or 163.8%. However, the 9.5% appreciation of the peso versus the dollar partially offset the revenue increase in 3Q21.

    3. Revenues from the Kingston airport increased by Ps. 21.7 million, or 89.8%, compared to 3Q20. Revenues in U.S. dollars increased by US$ 1.2 million, or 109.7%.
 3Q203Q21Change
Businesses operated by third parties:
Duty-free54,116153,167183.0%
Food and beverage44,320163,585269.1%
Retail43,445119,901176.0%
Car rentals51,512112,400118.2%
Leasing of space48,31265,59635.8%
Time shares20,61254,657165.2%
Ground transportation18,72036,73396.2%
Communications and financial services11,08222,325101.4%
Other commercial revenues16,61224,35746.6%
Total308,731752,719143.8%
    
Businesses operated directly by us:
Car parking58,820106,05780.3%
VIP lounges11,88760,774411.3%
Advertising9,43211,81325.2%
Convenience stores18,01759,391229.6%
Total98,156238,034142.5%
Recovery of costs37,23946,66125.3%
Total Non-aeronautical Revenues 444,1261,037,416133.6%
    

Figures expressed in thousands of Mexican pesos.

  • Revenues from improvements to concession assets1
    Revenues from improvements to concession assets (IFRIC-12) decreased by Ps. 158.2 million, or 14.4%, compared to 3Q20, mainly in:
  1. The Company’s Mexican airports, which decreased by Ps. 151.8 million, or 14.1%, as a result of the adjustment in committed investments in the Master Development Program for the 2020-2024 period.

  2. Improvements to concession assets at the Montego Bay airport decreased Ps. 6.4 million, or 30.1%. During 3Q21, no investments in improvements to concession assets were made at the Kingston airport.

________________________

[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. 230.6 million, or 9.3%, compared to 3Q20, mainly due to a Ps. 266.0 million, or 113.3%, increase in concession taxes and technical assistance fees, and a Ps. 109.1 million, or 16.8% increase in cost of services. This increase was partially offset by a Ps. 158.2 million, or 14.4%, decrease in the cost of improvements to the concession assets (IFRIC-12). Excluding the cost of improvements to concession assets, operating costs increased Ps. 388.8 million, or 28.1%. This was composed primarily of the following factors:
  
Mexican Airports:

  • Operating costs increased by Ps. 173.5 million, or 8.4%, compared to 3Q20, primarily due to a combined Ps. 184.1 million, or 127.9%, increase in technical assistance fees and concession taxes, a Ps. 115.4 million, or 24.3%, increase in cost of services and a Ps. 23.6 million, or 6.3%, increase in depreciation and amortization. This increase was partially offset by a Ps. 151.8 million, or 14.1%, decrease in the cost of improvements to the concession assets (IFRIC-12). Excluding this cost, operating costs increased by Ps. 325.3 million or 32.9%.

The increase in the cost of services during 3Q21 was mainly due to:

  • Maintenance costs increased by Ps. 51.4 million, or 83.5%, compared to 3Q20.
  • Employee costs increased Ps. 24.1 million, or 11.8%, compared to 3Q20, mainly due to the recognition of labor provisions in accordance with the Labor Reform Law and the hiring of additional personnel as required for airport operations due to the recovery of passenger traffic.
  • Safety, security and insurance costs increased Ps. 23.9 million, or 35.7%, compared to 3Q20, mainly due to an increase in the number of security staff as compared to 3Q20 when the partial closure of some operating areas reduced the need for personnel.
  • Utilities increased by Ps. 12.3 million or 19.4%, compared to 3Q20.

Montego Bay Airport:

  • Operating costs increased by Ps. 18.7 million, or 7.3%, compared to 3Q20, mainly due to a Ps. 36.8 million, or 281.1%, increase in concession taxes. The increase was partially offset by a Ps. 6.3 million, or 30.1%, decrease in cost of improvements to the concession assets (IFRIC-12), a Ps. 12.9 million, or 9.8%, decrease in depreciation and amortization as a result of the 9.5% appreciation of the Mexican peso against the U.S. dollar.

Kingston Airport:

  • Operating costs increased by Ps. 38.4 million, or 24.1% compared to 3Q20, mainly due to a Ps. 45.1 million, or 58.0%, increase in concession taxes and was partially offset by a Ps. 6.9 million, or 8.7%, decrease in the cost of services.

Operating margin went from 19.1% in 3Q20 to 48.8% in 3Q21. Excluding the effects of IFRIC-12, operating margin went from 29.7% to 59.3% in 3Q21. Operating income increased Ps. 1,994.2 million, or 340.2%, compared to 3Q20.

EBITDA margin went from 35.6% in 3Q20 to 58.5% in 3Q21. Excluding the effects of IFRIC-12, EBITDA margin went from 55.6% in 3Q20 to 71.3% in 3Q21. The nominal value of EBITDA increased Ps. 2,005.2 million, or 183.4%, compared to 3Q20.

Financial cost decreased by Ps. 27.2 million, or 11.3%, from a net expense of Ps. 241.2 million in 3Q20 to a net expense of Ps. 214.0 million in 3Q21. This decrease was mainly the result of:

  • Foreign exchange rate fluctuations, which went from income of Ps. 12.4 million in 3Q20 to income of Ps. 87.6 million in 3Q21. This generated an increase in the foreign exchange gain of Ps. 75.2 million. The currency translation effect income increased Ps. 188.5 million, compared to 3Q20.

  • An increase in interest expenses of Ps. 22.5 million, or 5.9%, compared to 3Q20, mainly due to higher debt as a result of the issuance of long-term bonds.

  • Interest income decreased by Ps. 25.5 million, or 20.1%, compared to 3Q20, mainly due to a decrease in the average balance of cash and cash equivalents during 3Q21 as compared to 3Q20.

In 3Q21, comprehensive income increased Ps. 1,743.0 million, or 641.5%, compared to 3Q20. This increase was mainly due to the Ps. 2,021.3 million increase in profit before taxes derived from the significant increase in passenger traffic, as well as the Ps. 188.5 million increase in currency translation effect. This increase was partially offset by an increase in income taxes of Ps. 594.0 million.

During 3Q21, net income increased by Ps. 1,427.3 million, or 405.0%, compared to 3Q20. Income taxes increased by Ps. 487.7 million and the benefit for deferred taxes decreased by Ps. 106.3 million, mainly due to the application of tax losses in Ps. 62.9 million and a decrease in the inflation rate, that went from 1.7% in 3Q20 to 1.5% in 3Q21.

Consolidated Results for the First Nine Months of 2021 (in thousands of pesos):

 9M209M21Change
Revenues   
Aeronautical services5,202,303 8,412,610 61.7%
Non-aeronautical services1,797,608 2,584,554 43.8%
Improvements to concession assets (IFRIC-12)2,522,058 2,829,371 12.2%
Total revenues9,521,968 13,826,535 45.2%
    
Operating costs    
Costs of services:2,030,357 2,107,665 3.8%
Employee costs735,170 809,698 10.1%
Maintenance295,547 339,953 15.0%
Safety, security & insurance337,958 373,147 10.4%
Utilities272,456 284,503 4.4%
Other operating expenses389,226 300,364 (22.8%)
    
Technical assistance fees199,296 370,504 85.9%
Concession taxes714,896 871,641 21.9%
Depreciation and amortization1,494,213 1,531,129 2.5%
Cost of improvements to concession assets (IFRIC 12)2,522,058 2,829,371 12.2%
Other expense (income)1,635 (5,372)(428.5%)
Total operating costs6,962,454 7,704,938 10.7%
Income from operations2,559,514 6,121,597 139.2%
    
Financial Result(567,380)(699,548)23.3%
Income before income taxes 1,992,134 5,422,049 172.2%
Income taxes(413,839)(1,180,768)185.3%
Net income 1,578,295 4,241,281 168.7%
Currency translation effect1,223,592 (24,246)(102.0%)
Cash flow hedges, net of income tax(289,658)404,240 239.6%
Remeasurements of employee benefit – net income tax(21,338)11,614 154.4%
Comprehensive income2,490,891 4,632,889 86.0%
Non-controlling interest(108,803)(45,120)58.5%
Comprehensive income attributable to controlling interest2,382,088 4,587,769 92.6%
    
    
 9M209M21Change
EBITDA4,053,727 7,652,727 88.8%
Comprehensive income2,490,891 4,632,889 86.0%
Comprehensive income per share (pesos)4.7394 9.0011 89.9%
Comprehensive income per ADS (US dollars)2.3049 4.3775 89.9%
    
Operating income margin26.9%44.3%64.7%
Operating income margin (excluding IFRIC-12)36.7%55.7%51.8%
EBITDA margin42.6%55.3%30.0%
EBITDA margin (excluding IFRIC-12)57.9%69.6%20.2%
Costs of services and improvements / total revenues47.8%35.7%(25.3%)
Cost of services / total revenues (excluding IFRIC-12)29.0%19.2%(33.9%)
    

- Net income and comprehensive income per share for the nine-month period ended September 30, 2021, were calculated based on 514,705,326 shares outstanding as of September 30, 2021, and for the nine-month period ended September 30, 2020, were calculated based on 525,575,547 shares outstanding as of September 30, 2020. U.S. dollar figures presented were converted from pesos to U.S. dollars at a rate of Ps. 20.5620 per U.S. dollar (the noon buying rate on September 30, 2021, as published by the U.S. Federal Reserve Board).
- For purposes of the consolidation of the Montego Bay and Kingston airports, the average nine-month exchange rate of Ps. 20.1262 per U.S. dollar for the nine months ended September 30, 2021, was used.

Revenues (9M21 vs 9M20)

  • Aeronautical services revenues increased by Ps. 3,210.3 million, or 61.7%.
  • Non-aeronautical services revenues increased by Ps. 786.9 million, or 43.8%.
  • Revenues from improvements to concession assets increased by Ps. 307.3 million, or 12.2%.
  • Total revenues increased by Ps. 4,304.6 million, or 45.2%.
  • The change in aeronautical services revenues was composed of the following factors:

    1. Revenues at the Company’s Mexican airports increased by Ps. 3,027.4 million or 69.8% during the period from January to September 2021, mainly as a result of the 61.1% increase in passenger traffic and the increase in the maximum rates applicable for 2021 as a result of the Extraordinary Review Process of our Master Development Program.

    2. Revenues from the Montego Bay airport increased by Ps. 102.1 million, or 17.3%, compared to the same period in 2020. This was mainly due to the 32.9% increase in passenger traffic and partially offset by the 7.6% appreciation of the peso versus the U.S. dollar during the nine months ended September 30, 2021.

    3. Revenues from the Kingston airport increased by Ps. 80.8 million, or 29.4% compared to 2020, mainly due to a 14.5% increase in passenger traffic and partially offset by the 7.6% appreciation of the peso versus the dollar during the period from January to September 2021.

  • The change in non-aeronautical services revenues was composed primarily of the following factors :

    1. The revenues from the Company’s Mexican airports increased by Ps. 717.7 million, or 49.8%, compared to 2020. Revenues from businesses operated by third parties increased by Ps. 547.0 million, or 58.2%. This was mainly due to the recovery of passenger traffic that resulted in the gradual phase-out of discounts to tenants. The business lines that increased the most were food and beverage, duty-free stores, retail, car rentals, time shares and other commercial income, which jointly increased by Ps. 494.7 million, or 70.1%. Revenues from businesses operated directly by the Company increased by Ps. 164.7 million, or 41.0%. This increase was primarily due to an increase in revenue from parking, convenience stores and VIP lounges which jointly increased Ps. 195.9 million and was partially offset by a Ps. 31.2 million decrease in revenues from publicity. The recovery of costs increased by Ps. 6.0 million, or 6.0%.

    2. Revenues from the Montego Bay airport increased by Ps. 61.8 million, or 24.2%, compared to 2020, primarily due to a 32.9% increase in passenger traffic.

    3. The consolidation of the Kingston airport contributed an increase of Ps. 7.4 million, or 7.4%, to non-aeronautical services revenues as compared to 2020.

 9M209M21Change
Businesses operated by third parties:
Duty-free231,790375,60662.0%
Food and beverage221,641367,41465.8%
Retail186,678285,56353.0%
Car rentals208,228288,05338.3%
Leasing of space153,509175,84014.5%
Time shares74,155134,67781.6%
Ground transportation69,39397,80540.9%
Communications and financial services48,01061,20027.5%
Other commercial revenues55,67682,67848.5%
Total1,249,0801,868,83649.6%
    
Businesses operated directly by us:
Car parking160,054273,32270.8%
VIP lounges112,574145,18429.0%
Advertising67,10533,669(49.8%)
Convenience stores76,829128,43667.2%
Total416,562580,61139.4%
Recovery of costs131,966135,1072.4%
Total Non-aeronautical Revenues 1,797,6082,584,55443.8%
    

Figures expressed in thousands of Mexican pesos.

  • Revenues from improvements to concession assets2
    Revenues from improvements to concession assets (IFRIC-12) increased by Ps. 307.3 million, or 12.2%, compared to 2020, mainly in:

    1. The Company’s Mexican airports, which increased by Ps. 351.7 million, or 14.5%, as a result of the increase in committed investments in the Master Development Program for the 2020-2024 period.

    2. Improvements to concession assets at the Montego Bay airport decreased Ps. 44.4 million, or 44.3%. During the 2021 period, no investments in improvements to concession assets were made at the Kingston airport.

________________________
[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. 742.5 million, or 10.7%, compared to the same period of 2020, mainly due to a Ps. 328.0 million, or 35.9%, increase in concession taxes and technical assistance fees, Ps. 307.3 million, or 12.2%, increase in the cost of improvements to the concession assets (IFRIC-12) and Ps. 77.3 million, or 3.8%, increase in the cost of services. Excluding the cost of improvements to concession assets (IFRIC-12), operating costs increased Ps. 435.2 million, or 9.8%. This was composed primarily of the following factors:

Mexican Airports:

  • Operating costs increased by Ps. 889.9 million, or 16.1%, compared to the same period of 2020, primarily due to a Ps. 354.3 million, or 72.8%, increase in concession taxes and technical assistance fees, a Ps. 351.7 million, or 14.5%, increase in the cost of improvements to the concession assets (IFRIC-12), a Ps. 59.0 million, or 5.4%, increase in depreciation and amortization and a Ps. 128.4 million, or 8.5%, increase in the cost of services.

The cost of services was mainly comprised of the following:

  • Employee costs increased Ps. 82.6 million, or 14.2%, compared to the same period of 2020, mainly due to the recognition of labor provisions in accordance with the Labor Reform Law and the hiring of additional personnel as required for airport operations.
  • Maintenance costs increased by Ps. 54.1 million, or 24.1%, as a result of the increase in essential maintenance required as a result of the increase in passenger traffic.
  • Safety, security and insurance costs increased Ps. 47.3 million, or 21.5%, compared to the same period of 2020.
  • Utilities increased by Ps. 10.2 million or 5.9%, compared to the same period of 2020.
  • These increases were partially offset by a decrease in Other operating expenses of Ps. 65.8 million or 21.2%, compared to the same period of 2020, mainly due to a Ps. 85.1 million combined decrease in the allowance for credit losses, sanitation supplies, the purchase of supplies and donations to the medical sector for the prevention of COVID-19, professional services, and publicity. This decrease was partially offset by a combined increase of Ps. 24.1 million in the cost of goods and services for our VIP lounges and convenience stores, FBO services, among others.

Montego Bay Airport:

  • Operating costs decreased by Ps. 159.1 million, or 16.2%, compared to the same period of 2020, mainly due to a Ps. 72.1 million, or 37.5%, decrease in concession taxes, a Ps. 44.4 million, or 44.3%, decrease in the cost of improvements to concession assets (IFRIC-12), a Ps. 23.0 million, or 6.0%, decrease in depreciation and amortization and a Ps. 17.2 million, or 5.8%, decrease in the cost of services.

Kingston Airport:

  • The consolidation of the airport generated an increase in operating costs of Ps. 12.7 million during the January to September period of 2021, mainly due to a Ps. 45.8 million, or 19.4%, increase in concession taxes and partially offset by a Ps. 33.8 million, or 15.4%, decrease in the cost of services, primarily as a result of a Ps. 23.0 million, or 50.5%, decrease in other operating expenses in the allowance for credit losses.

Operating margin went from 26.9% in the period from January to September 2020 to 44.3% in the same period of 2021. Excluding the effects of IFRIC-12, operating margin went from 36.7% in the 2020 period to 55.7% in the same period of 2021. Operating income increased Ps. 3,562.1 million, or 139.2%, compared to the 2020 period.

EBITDA margin increased 1,270 basis points from 42.6% in the January to September 2020 period to 55.3% in the same period of 2021. Excluding the effects of IFRIC-12, EBITDA margin increased 1,170 basis points from 57.9% in the 2020 period to 69.6% in the 2021 period. The nominal value of EBITDA was Ps. 7,652.7 million from January to September 2021 compared to Ps. 4,053.7 million during the same period of 2020, an increase of 88.8%.

Financial cost increased by Ps. 132.2 million, from a net expense of Ps. 567.4 million during the period from January to September 2020 to a net expense of Ps. 699.6 million during the same period of 2021. This increase was mainly the result of:

  • Foreign exchange rate fluctuations went from income of Ps. 199.5 million during the period from January to September 2020 to income of Ps. 205.2 million during the same period of 2021. This generated an increase in the foreign exchange gain of Ps. 5.7 million. Currency translation effect income also decreased by 1,247.8 million as compared to the 2020 period due to the fact that the exchange rate as of September 30, 2020, closed at Ps. 22.4573 as compared to Ps. 20.3060 as of September 30, 2021, an appreciation by the peso of 9.6%.

  • An increase in interest expense of Ps. 94.8 million, or 8.6%, compared to the 2020 period, mainly due to higher debt as a result of the issuance of long-term bonds issued during 2021.

  • Interest income decreased by Ps. 43.1 million, or 12.7%, compared to the 2020 period, mainly due to a decrease in the average balance of cash and cash equivalents during the 2021 period.

Comprehensive income increased Ps. 2,142.0 million, or 86.0% compared to the 2020 period. This increase was mainly due to a Ps. 3,429.9 million increase in profit before taxes and a Ps. 693.9 million increase in the cash flow hedge reserve. This increase was partially offset by a Ps. 1,247.8 million decrease in currency translation effect.

Net income increased Ps. 2,663.0 million, or 168.7% during the nine months ended September 30, 2021. Income taxes increased by Ps. 766.9 million, or 185.3%, as a result of a Ps. 819.8 million increase in current income taxes and a Ps. 52.9 million increase in the benefit for deferred taxes, mainly due to the application of tax losses of Ps. 142.2 million and partially offset by an increase in the inflation rate, that went from 2.1% in the 2020 period to 4.9% during the same period of 2021.

Statement of Financial Position

Total assets as of September 30, 2021, decreased by Ps. 3,085.9 million as compared to September 30, 2020, primarily due to the following items: (i) a Ps. 4,569.6 million decrease in cash and cash equivalents and ii) a Ps. 784.3 million decrease in the value of concession assets (due to the valuation of the Jamaica concessions in U.S. dollars and the appreciation of the peso). These decreases were partially offset by increases of: i) Ps. 1,042.4 million in improvements to concession assets; (ii) Ps. 948.3 million in machinery, equipment and leasehold improvements and advances to suppliers; and (iii) Ps. 241.5 million in other current assets, among others.
        
Total liabilities as of September 30, 2021, increased by Ps. 965.8 million compared to September 30, 2020. This increase was primarily due to the following items: (i) Long-term bonds (net) of Ps. 3,000.0 million; (ii) income taxes of Ps. 841.0 million and (iii) concession taxes of Ps. 154.3 million. This was partially offset by decreases of: (i) Ps. 2,000.0 million in bank loans, (ii) Ps. 590.5 million in derivative financial instruments and (iii) Ps. 170.2 million in deferred taxes, among others.

Recent Events

  • On October 15, 2021, the Company successfully issued in Mexico 25 million long-term debt securities (Certificados Bursátiles) for a total Ps. 2,500.0 million, in accordance with the following terms: i) Ps. 1,500.0 million of these securities have a variable interest rate of TIIE-28 plus 25 basis points, and the principal payment will be made on October 9, 2026; and ii) Ps. 1,000.0 million have a fixed interest rate of 7.91% with the principal payment due on April 28, 2028.

  • As of the date of this report, the Company has repurchased 11,252,916 shares at an average price of Ps. 218.45 per share, for a total of Ps. 2,458.2 million.  

Company Description

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (GAP) operates 12 airports throughout Mexico’s Pacific region, including the major cities of Guadalajara and Tijuana, the four tourist destinations of Puerto Vallarta, Los Cabos, La Paz and Manzanillo, and six other mid-sized cities: Hermosillo, Guanajuato, Morelia, Aguascalientes, Mexicali and Los Mochis.  In February 2006, GAP’s shares were listed on the New York Stock Exchange under the ticker symbol “PAC” and on the Mexican Stock Exchange under the ticker symbol “GAP”.  In April 2015, GAP acquired 100% of Desarrollo de Concesiones Aeroportuarias, S.L., which owns a majority stake in MBJ Airports Limited, a company operating Sangster International Airport in Montego Bay, Jamaica. In October 2018, GAP entered into a concession agreement for the operation of the Norman Manley International Airport in Kingston, Jamaica and took control of the operation in October 2019.

This press release contains references to EBITDA, a financial performance measure not recognized under IFRS and which does not purport to be an alternative to IFRS measures of operating performance or liquidity. We caution investors not to place undue reliance on non-GAAP financial measures such as EBITDA, as these have limitations as analytical tools and should be considered as a supplement to, not a substitute for, the corresponding measures calculated in accordance with IFRS.

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management’s current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words “anticipates”, “believes”, “estimates”, “expects”, “plans” and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

In accordance with Section 806 of the Sarbanes-Oxley Act of 2002 and article 42 of the “Ley del Mercado de Valores”, GAP has implemented a “whistleblower” program, which allows complainants to anonymously and confidentially report suspected activities that may involve criminal conduct or violations. The telephone number in Mexico, facilitated by a third party that is in charge of collecting these complaints, is 01 800 563 00 47. The web site is www.lineadedenuncia.com/gap. GAP’s Audit Committee will be notified of all complaints for immediate investigation.

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

Airport3Q203Q21Change9M209M21Change
Guadalajara      
Aeronautical services511,304 936,47683.2%1,486,854 2,364,80259.0%
Non-aeronautical services124,227 216,33574.1%426,618 588,62838.0%
Improvements to concession assets (IFRIC 12)345,253 281,771(18.4%)776,820 845,3138.8%
Total Revenues980,784 1,434,58346.3%2,690,291 3,798,74141.2%
Operating income328,999 742,786125.8%996,014 1,887,73389.5%
EBITDA421,434 839,89599.3%1,271,400 2,180,32971.5%
       
Tijuana      
Aeronautical services297,610 511,00971.7%806,134 1,345,82166.9%
Non-aeronautical services70,597 114,53362.2%233,815 315,57735.0%
Improvements to concession assets (IFRIC 12)191,013 407,033113.1%429,779 1,221,098184.1%
Total Revenues559,219 1,032,57584.6%1,469,729 2,882,49796.1%
Operating income191,116 394,096106.2%496,414 1,038,858109.3%
EBITDA255,741 456,54778.5%685,116 1,230,99379.7%
       
Los Cabos      
Aeronautical services194,119 540,223178.3%668,924 1,403,875109.9%
Non-aeronautical services76,355 257,178236.8%329,332 603,26983.2%
Improvements to concession assets (IFRIC 12)216,466 111,408(48.5%)487,049 334,223(31.4%)
Total Revenues486,940 908,80986.6%1,485,305 2,341,36757.6%
Operating income107,858 548,226408.3%500,133 1,367,260173.4%
EBITDA175,129 615,771251.6%699,397 1,561,092123.2%
       
Puerto Vallarta      
Aeronautical services103,106 338,057227.9%587,644 893,81852.1%
Non-aeronautical services34,450 108,579215.2%205,160 284,09338.5%
Improvements to concession assets (IFRIC 12)151,609 77,817(48.7%)341,120 233,450(31.6%)
Total Revenues289,165 524,45281.4%1,133,923 1,411,36124.5%
Operating income29,003 270,060831.1%416,505 723,07873.6%
EBITDA71,792 313,466336.6%541,774 855,60257.9%
       
Montego Bay      
Aeronautical services82,213 307,859274.5%589,003 691,06417.3%
Non-aeronautical services52,190 124,623138.8%255,863 317,67524.2%
Improvements to concession assets (IFRIC 12)20,996 14,669(30.1%)100,373 55,942(44.3%)
Total Revenues155,399 447,151187.7%945,239 1,064,68012.6%
Operating (loss) income(100,017)173,069273.0%(32,927)245,554845.8%
EBITDA31,336 291,557830.4%351,970 607,44972.6%
           

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

Airport3Q203Q21Change9M209M21Change
Guanajuato      
Aeronautical services74,120 164,660122.2%237,834 413,18973.7%
Non-aeronautical services20,484 38,16586.3%84,437 100,73619.3%
Improvements to concession assets (IFRIC 12)43,293 3,094(92.9%)97,408 9,281(90.5%)
Total Revenues137,897 205,91949.3%419,679 523,20524.7%
Operating (loss) income36,915 120,450226.3%150,895 306,508103.1%
EBITDA55,214 139,476152.6%204,707 362,83277.2%
       
Hermosillo      
Aeronautical services39,962 91,901130.0%140,245 234,90367.5%
Non-aeronautical services11,473 17,85155.6%47,283 53,61313.4%
Improvements to concession assets (IFRIC 12)5,796 4,341(25.1%)13,042 13,024(0.1%)
Total Revenues57,231 114,09399.4%200,570 301,53950.3%
Operating (loss) income(2,351)32,6191487.3%29,441 102,965249.7%
EBITDA16,829 51,321205.0%86,552 160,42785.4%
       
Others (1)      
Aeronautical services224,212 426,05590.0%685,664 1,065,13855.3%
Non-aeronautical services54,350 99,45683.0%215,101 257,85819.9%
Improvements to concession assets (IFRIC 12)122,874 39,014(68.2%)276,465 117,041(57.7%)
Total Revenues401,435 564,52540.6%1,177,230 1,440,03822.3%
Operating (loss) income(44,549)54,564222.5%(60,111)189,062414.5%
EBITDA16,096 128,777700.0%118,860 393,287230.9%
       
Total       
Aeronautical services1,526,645 3,316,240117.2%5,202,303 8,412,61061.7%
Non-aeronautical services444,126 976,722119.9%1,797,608 2,521,44740.3%
Improvements to concession assets (IFRIC 12)1,097,300 939,145(14.4%)2,522,058 2,829,37112.2%
Total Revenues3,068,071 5,232,10670.5%9,521,969 13,763,42844.5%
Operating income546,974 2,335,870327.1%2,496,364 5,861,017134.8%
EBITDA1,043,572 2,836,810171.8%3,959,777 7,352,00985.7%
           

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

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

 2020 2021 Change %
Assets    
Current assets    
Cash and cash equivalents15,220,432 10,650,840 (4,569,592)(30.0%)
Trade accounts receivable - Net1,337,069 1,419,022 1,419,022 6.1%
Other current assets955,218 1,196,699 1,196,699 25.3%
Total current assets17,512,719 13,266,561 (4,246,157)(24.2%)
     
Advanced payments to suppliers395,746 879,342 483,596 122.2%
Machinery, equipment and improvements to leased buildings - Net2,077,750 2,542,454 464,704 22.4%
Improvements to concession assets - Net13,453,827 14,496,214 1,042,387 7.7%
Airport concessions - Net11,171,190 10,386,868 (784,322)(7.0%)
Rights to use airport facilities - Net1,300,151 1,226,755 (73,396)(5.6%)
Deferred income taxes - Net6,017,493 6,114,888 97,395 1.6%
Other non-current assets256,914 186,772 (70,143)(27.3%)
Total assets52,185,790 49,099,854 (3,085,936)(5.9%)
     
Liabilities     
Current liabilities8,433,190 4,338,720 (4,094,470)(48.6%)
Long-term liabilities20,592,268 25,652,501 5,060,233 24.6%
Total liabilities29,025,458 29,991,221 965,763 3.3%
     
Stockholders' Equity    
Common stock6,185,082 170,381 (6,014,701)(97.2%)
Legal reserve1,592,551 1,592,551 - 0.0%
Net income1,608,717 4,217,345 2,608,628 162.2%
Retained earnings9,940,035 7,927,599 (2,012,436)(20.2%)
Reserve for share repurchase3,283,374 5,531,293 2,247,919 68.5%
Repurchased shares(1,733,374)(2,362,339)(628,965)36.3%
Foreign currency translation reserve1,610,358 992,017 (618,341)(38.4%)
Remeasurements of employee benefit – Net(14,732)1,562 16,294 110.6%
Cash flow hedges- Net(461,752)(66,867)394,885 85.5%
Total controlling interest22,010,259 18,003,541 (4,006,717)(18.2%)
Non-controlling interest1,150,073 1,105,092 (44,981)(3.9%)
Total stockholder's equity23,160,332 19,108,633 (4,051,698)(17.5%)
     
Total liabilities and stockholders' equity52,185,790 49,099,854 (3,085,936)(5.9%)
         

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):  

 3Q203Q21Change9M209M21Change
Cash flows from operating activities:      
Consolidated net income352,441 1,779,726 405.0%1,578,295 4,241,281 168.7%
       
Postemployment benefit costs13,640 (3,302(124.2%)20,306 13,368
 (34.2%)
Allowance expected credit loss26,026 11,570 (55.5%)113,076 32,641 (71.1%)
Depreciation and amortization506,982 518,005 2.2%1,494,213 1,531,129 2.5%
(Gain) loss on sale of machinery, equipment and improvements to leased assets(1,780)(2,693)51.3%(15,979)(1,358)(91.5%)
Interest expense409,472 427,527 4.4%1,035,733 1,228,317 18.6%
Provisions885 1,994 125.3%(457)(3,683)705.9%
Income tax expense(7,432)586,599 7992.9%413,839 1,180,768 185.3%
Unrealized exchange loss(140,455)44,736 131.9%512,265 (19,103)(103.7%)
Net (gain) loss on derivative financial instruments(10,579)- (100.0%)48,175 - (100.0%)
 1,149,199 3,364,162 192.7%5,199,466 8,203,361 57.8%
Changes in working capital:      
(Increase) decrease in      
Trade accounts receivable(300,072)133,056 144.3%82,272 (183,864)(323.5%)
Recoverable tax on assets and other assets(167,127)(33,545)(79.9%)(625,184)(108,855)(82.6%)
(Decrease) increase      
Concession taxes payable16,128 (3,532)(121.9%)(360,201)57,206 115.9%
Accounts payable(321,158)100,933 131.4%(664,482)317,548 147.8%
Cash generated by operating activities376,970 3,561,072 844.7%3,631,872 8,285,395 128.1%
Income taxes paid(213,213)(329,375)54.5%(842,569)(714,474)(15.2%)
Net cash flows provided by operating activities163,757 3,231,697 1873.5%2,789,303 7,570,921 171.4%
       
Cash flows from investing activities:      
Machinery, equipment and improvements to concession assets(1,017,214)(1,120,965)10.2%(2,261,509)(2,799,980)23.8%
Cash flows from sales of machinery and equipment2,993 42 (98.6%)3,185 2,988 (6.2%)
Other investment activities(9,114)12,389 235.9%(64,116)(11,983)(81.3%)
Net cash used by investment activities(1,023,335)(1,108,534)8.3%(2,322,439)(2,808,975)20.9%
       
Cash flows from financing activities:      
Capital distribution- (4,014,701)100.0%- (6,014,701)100.0%
Debt securities- - 0.0%7,200,000 4,500,000 (37.5%)
Payment from Debt securities- (1,500,000)100.0%(2,200,000)(1,500,000)(31.8%)
Bank loans- - 0.0%- (5,860,151)100.0%
Repurchase of shares- (1,151,265)100.0%- (2,362,339)100.0%
Interest paid(379,636)(349,100)(8.0%)(988,052)(1,121,336)13.5%
Bank loans654,396 - (100.0%)2,805,660 3,779,413 34.7%
Interest paid on lease(626)(401)(35.9%)(2,018)(1,340)(33.6%)
Payments of obligations for leasing(3,133)(2,994)(4.4%)(9,949)(9,039)(9.1%)
Net cash flows used in financing activities271,001 (7,018,461)(2689.8%)6,805,641 (8,589,493)(226.2%)
       
Effects of exchange rate changes on cash held60,180 43,150 (28.3%)447,735 33,839 (92.4%)
Net increase in cash and cash equivalents(528,397)(4,852,148)818.3%7,720,239 (3,793,708)(149.1%)
Cash and cash equivalents at beginning of the period15,748,829 15,502,987 (1.6%)7,500,193 14,444,549 92.6%
Cash and cash equivalents at the end of the period15,220,432 10,650,840 (30.0%)15,220,432 10,650,840 (30.0%)
       

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

 3Q203Q21Change9M209M21Change
Revenues      
Aeronautical services1,526,645 3,316,240 117.2%5,202,303 8,412,610 61.7%
Non-aeronautical services444,126 1,037,416 133.6%1,797,608 2,584,554 43.8%
Improvements to concession assets (IFRIC 12)1,097,300 939,145 (14.4%)2,522,058 2,829,371 12.2%
Total revenues3,068,071 5,292,801 72.5%9,521,968 13,826,535 45.2%
       
Operating costs      
Costs of services:650,245 759,323 16.8%2,030,357 2,107,665 3.8%
Employee costs248,704 276,236 11.1%735,170 809,698 10.1%
Maintenance83,742 136,477 63.0%295,547 339,953 15.0%
Safety, security & insurance108,553 124,716 14.9%337,958 373,147 10.4%
Utilities101,137 111,739 10.5%272,456 284,503 4.4%
Other operating expenses108,109 110,155 1.9%389,226 300,364 (22.8%)
       
Technical assistance fees58,254 146,706 151.8%199,296 370,504 85.9%
Concession taxes176,469 353,984 100.6%714,896 871,641 21.9%
Depreciation and amortization506,982 518,005 2.2%1,494,213 1,531,129 2.5%
Cost of improvements to concession assets (IFRIC 12)1,097,300 939,145 (14.4%)2,522,058 2,829,371 12.2%
Other (income)(7,387)(4,735)(35.9%)1,635 (5,372)(428.5%)
Total operating costs2,481,863 2,712,428 9.3%6,962,454 7,704,938 10.7%
Income from operations586,209 2,580,373 340.2%2,559,514 6,121,597 139.2%
Financial Result(241,200)(214,047)(11.3%)(567,380)(699,548)23.3%
Income before income taxes 345,009 2,366,325 585.9%1,992,134 5,422,049 172.2%
Income taxes7,432 (586,599)7992.9%(413,839)(1,180,768)185.3%
Net income 352,441 1,779,726 405.0%1,578,295 4,241,281 168.7%
Currency translation effect(127,539)60,978 (147.8%)1,223,592 (24,246)(102.0%)
 Cash flow hedges, net of income tax58,447 164,213 181.0%(289,658)404,240 239.6%
Remeasurements of employee benefit – net income tax(11,633)9,777 184.0%(21,338)11,614 154.4%
Comprehensive income 271,716 2,014,694 641.5%2,490,891 4,632,889 86.0%
Non-controlling interest55,306 (45,769)(182.8%)(108,803)(45,120)58.5%
Comprehensive income attributable to controlling interest327,021 1,968,925 502.1%2,382,088 4,587,769 92.6%
             

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 StockLegal ReseveReserve for Share RepurchaseRepurchased SharesRetained EarningsOther comprehensive incomeTotal controlling interestNon-controlling interestTotal Stockholders' Equity
Balance as of January 1, 20206,185,082 1,592,5513,283,374 (1,733,374)9,940,035 360,504 19,628,172 1,041,271 20,669,443 
Comprehensive income:         
Net income- -- - 1,608,717 - 1,608,717 (30,423)1,578,296 
Foreign currency translation reserve- -- - - 1,084,366 1,084,366 139,226 1,223,592 
Remeasurements of employee benefit – Net- -- - - (21,338)(21,338)- (21,338)
Reserve for cash flow hedges – Net of income tax- -- - - (289,658)(289,658)- (289,658)
Balance as of September 30, 20206,185,082 1,592,5513,283,374 (1,733,374)11,548,752 1,133,875 22,010,259 1,150,073 23,160,332 
          
Balance as of January 1, 20216,185,082 1,592,5513,283,374 (1,733,374)11,908,891 556,287 21,792,811 1,059,972 22,852,783 
Capital reduction(6,014,701)-- - - - (6,014,701)- (6,014,701)
Repurchased shares cancellation- -(1,733,374)1,733,374 - - - - - 
Reserve for share repurchase- -3,981,292 - (3,981,292)- - - - 
Repurchased share- -- (2,362,339)- - (2,362,339)- (2,362,339)
Comprehensive income:- -- - - - - - - 
Net income- -- - 4,217,345 - 4,217,345 23,936 4,241,282 
Foreign currency translation reserve- -- - - (45,430)(45,430)21,184 (24,246)
Remeasurements of employee benefit – Net- -- - - 11,614 11,614 - 11,614 
Reserve for cash flow hedges – Net of income tax- -- - - 404,240 404,240 - 404,240 
Balance as of September 30, 2021170,381 1,592,5515,531,293 (2,362,339)12,144,944 926,711 18,003,541 1,105,092 19,108,633 
          

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:

 3Q203Q21Change9M209M21Change
Total passengers5,718.911,729.8105.1%19,110.230,176.657.9%
Total cargo volume (in WLUs)534.7655.622.6%1,549.62,012.129.8%
Total WLUs6,253.612,385.398.1%20,659.832,188.855.8%
       
Aeronautical & non aeronautical services per passenger (pesos)344.6371.27.7%366.3364.4(0.5%)
Aeronautical services per WLU (pesos)244.1267.89.7%251.8261.43.8%
Non aeronautical services per passenger (pesos)77.788.413.9%94.185.6(8.9%)
Cost of services per WLU (pesos)104.061.3(41.0%)98.365.5(33.4%)
       

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

Passenger Traffic and Consolidated Results compared to the same periods of 2019:

Domestic Terminal Passengers – 14 airports (in thousands):

Airport3Q193Q21Change9M199M21Change
Guadalajara2,671.42,246.8(15.9%)7,765.85,998.2(22.8%)
Tijuana *1,556.21,837.218.1%4,451.15,021.212.8%
Los Cabos562.2558.0(0.7%)1,447.71,445.4(0.2%)
Puerto Vallarta539.9540.60.1%1,371.21,294.2(5.6%)
Guanajuato528.0401.8(23.9%)1,522.31,082.7(28.9%)
Montego Bay2.70.0(100.0%)6.90.0(100.0%)
Hermosillo455.7390.0(14.4%)1,315.71,008.3(23.4%)
Mexicali301.7300.9(0.3%)871.1764.1(12.3%)
Morelia116.9138.418.4%342.8394.115.0%
La Paz274.0237.4(13.4%)740.4635.1(14.2%)
Aguascalientes160.4162.31.2%465.6404.7(13.1%)
Kingston0.00.3N/A0.01.0N/A
Los Mochis95.689.4(6.5%)282.8252.0(10.9%)
Manzanillo21.320.8(2.1%)70.561.0(13.4%)
Total7,286.16,924.0(5.0%)20,653.818,362.1(11.1%)

*CBX users are classified as international passengers.

International Terminal Passengers – 14 airports (in thousands):

Airport3Q193Q21Change9M199M21Change
Guadalajara1,157.81,098.9(5.1%)3,234.52,643.2(18.3%)
Tijuana *741.9738.5(0.5%)2,136.11,901.1(11.0%)
Los Cabos745.4944.326.7%2,764.72,462.1(10.9%)
Puerto Vallarta447.6529.718.4%2,418.21,457.9(39.7%)
Guanajuato183.0198.58.5%528.2447.3(15.3%)
Montego Bay1,099.0799.0(27.3%)3,615.31,760.6(51.3%)
Hermosillo17.230.779.2%51.776.648.2%
Mexicali1.81.83.2%5.13.6(28.7%)
Morelia105.8116.19.7%312.9292.9(6.4%)
La Paz2.85.496.1%9.413.745.8%
Aguascalientes65.063.4(2.5%)164.4152.0(7.5%)
Kingston0.0268.0N/A0.0566.8N/A
Los Mochis1.93.162.2%5.47.130.7%
Manzanillo8.48.2(2.7%)60.829.7(51.1%)
Total4,577.54,805.85.0%15,306.411,814.5(22.8%)

*CBX users are classified as international passengers.

Total Terminal Passengers – 14 airports (in thousands):

Airport3Q193Q21Change9M199M21Change
Guadalajara3,829.23,345.7(12.6%)11,000.38,641.5(21.4%)
Tijuana *2,298.12,575.712.1%6,587.26,922.35.1%
Los Cabos1,307.61,502.314.9%4,212.43,907.5(7.2%)
Puerto Vallarta987.51,070.38.4%3,789.42,752.1(27.4%)
Guanajuato711.1600.3(15.6%)2,050.51,530.0(25.4%)
Montego Bay1,101.8799.0(27.5%)3,622.11,760.6(51.4%)
Hermosillo472.9420.7(11.0%)1,367.41,084.9(20.7%)
Mexicali303.5302.7(0.2%)876.2767.8(12.4%)
Morelia222.7254.514.3%655.7687.04.8%
La Paz276.8242.8(12.3%)749.8648.8(13.5%)
Aguascalientes225.4225.70.2%630.0556.7(11.6%)
Kingston0.0268.4N/A0.0567.7N/A
Los Mochis97.692.5(5.1%)288.2259.1(10.1%)
Manzanillo29.729.0(2.3%)131.290.7(30.9%)
Total11,863.711,729.9(1.1%)35,960.230,176.6(16.1%)

*CBX users are classified as international passengers.

CBX Users (in thousands):

Airport3Q193Q21Change9M199M21Change
Tijuana730.0725.5(0.6%)2,100.91,878.2(10.6%)
       

The Company took control of the operation of the Kingston airport on October 10, 2019, consequently no figures are available for comparison purposes from January to September 2019.

Consolidated Results and Other Data compared with 2019 (in thousands of pesos):

 3Q193Q21Change9M199M21Change
Revenues      
Aeronautical services2,567,517 3,316,240 29.2%7,776,615 8,412,610 8.2%
Non-aeronautical services950,353 1,037,416 9.2%2,808,953 2,584,554 (8.0%)
Improvements to concession assets (IFRIC 12)797,548 939,145 17.8%1,066,398 2,829,371 165.3%
Total revenues4,315,418 5,292,801 22.6%11,651,966 13,826,535 18.7%
       
Operating costs      
Costs of services:670,350 759,323 13.3%1,971,293 2,107,665 6.9%
Employee costs205,622 276,236 34.3%628,738 809,698 28.8%
Maintenance141,467 136,477 (3.5%)402,269 339,953 (15.5%)
Safety, security & insurance105,657 124,716 18.0%310,100 373,147 20.3%
Utilities104,375 111,739 7.1%269,633 284,503 5.5%
Other operating expenses113,229 110,155 (2.7%)360,553 300,364 (16.7%)
       
Technical assistance fees115,795 146,706 26.7%345,013 370,504 7.4%
Concession taxes297,308 353,984 19.1%915,461 871,641 (4.8%)
Depreciation and amortization439,691 518,005 17.8%1,287,131 1,531,129 19.0%
Cost of improvements to concession assets (IFRIC 12)797,548 939,145 17.8%1,066,398 2,829,371 165.3%
Other (income) expense(7,605)(4,735)(37.7%)(16,538)(5,372)(67.5%)
Total operating costs2,313,087 2,712,428 17.3%5,568,758 7,704,938 38.4%
Income from operations2,002,331 2,580,373 28.9%6,083,209 6,121,597 0.6%
       
Financial Result(168,866)(214,046)26.8%(487,220)(699,548)43.6%
Income before taxes1,833,465 2,366,325 29.1%5,595,988 5,422,049 -3.1%
Income taxes(470,746)(586,599)24.6%(1,572,146)(1,180,768)(24.9%)
Net income 1,362,719 1,779,726 30.6%4,023,842 4,241,281 5.4%
Currency translation effect93,377 60,978 (34.7%)(46,362)(24,246)(47.7%)
Cash flow hedges, net of income tax- 164,213 100.0%- 404,240 100.0%
Remeasurements of employee benefit – net income tax(147)9,777 (6751.0%)(440)11,614 (2739.5%)
Comprehensive income1,455,949 2,014,694 38.4%3,977,040 4,632,889 16.5%
Non-controlling interest(33,307)(45,769)(37.4%)(78,235)(45,120)42.3%
Comprehensive income attributable to controlling interest1,422,642 1,968,925 38.4%3,898,805 4,587,769 17.7%
       
       
 3Q193Q21Change9M199M21Change
EBITDA2,442,022 3,098,378 26.9%7,370,338 7,652,727 3.8%
Comprehensive income1,455,949 2,014,694 38.4%3,977,039 4,632,889 16.5%
Comprehensive income per share (pesos)2.5953 3.9143 50.8%7.0892 9.0011 27.0%
Comprehensive income per ADS (US dollars)1.3511 1.9036 40.9%3.6906 4.3775 36.4%
       
Operating income margin46.4%48.8%5.1%52.2%44.3%(15.2%)
Operating income margin (excluding IFRIC 12)56.9%59.3%4.1%57.6%55.7%(3.3%)
EBITDA margin56.6%58.5%3.4%63.3%55.3%(12.5%)
EBITDA margin (excluding IFRIC 12)69.5%71.3%2.5%69.6%69.6%(0.1%)
Costs of services and improvements / total revenues34.0%32.1%(5.7%)26.1%35.7%37.0%
Cost of services / total revenues (excluding IFRIC 12)19.1%17.4%(8.5%)18.6%19.2%2.9%
       
       

 

IR Contacts: 
Saúl Villarreal, Chief Financial Officersvillarreal@aeropuertosgap.com.mx
Alejandra Soto, IR and Financial Planning Managerasoto@aeropuertosgap.com.mx 
Gisela Murillo, Investor Relationsgmurillo@aeropuertosgap.com.mx / +52-33-3880-1100 ext. 20294

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