Grupo Aeroportuario del Pacifico Announces Results for the Second Quarter of 2022
GUADALAJARA, Mexico, July 25, 2022 (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 second quarter ended June 30, 2022 (2Q22) (tables are presented at the end of this report comparing passenger traffic and consolidated results for 2022 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”).
*Summary of Results 2Q22 vs. 2Q21 **(and 2Q19 for purposes of illustrating the recovery trend)**:*
· The sum of* aeronautical and non-aeronautical services revenues increased by Ps. 1,706.3 million, or 43.4% *(Ps. 2,106.0 million, or 59.6%, as compared to 2Q19). Total revenues increased by Ps. 1,714.3 million, or 35.0% (Ps. 2,952.7 million, or 80.7%, as compared to 2Q19).· *Cost of services increased by Ps. 204.8 million, or 29.4% *(as compared to 2Q19, cost of services increased Ps. 195.2 million, or 27.7%).· *Income from operations increased by Ps. 1,231.8 million, or 53.9% *(Ps. 1,516.2 million, or 75.7%, as compared to 2Q19).· *EBITDA increased by Ps. 1,284.6 million, or 45.9% *(Ps. 1,653.5 million, or 68.1%, as compared to 2Q19), going from Ps. 2,797.1 million in 2Q21 to Ps. 4,081.7 million in 2Q22. EBITDA margin (excluding the effects of IFRIC 12) increased from 71.2% in 2Q21 to 72.4% in 2Q22 (EBITDA margin (excluding the effects of IFRIC 12) was 72.4% in 2Q19).· *Net comprehensive income increased Ps. 948.2 million, or 72.9% *(as compared to 2Q19, it increased Ps. 1,031.5 million, or 84.7%), from income of Ps. 1,300.9 million in 2Q21 to income of Ps. 2,249.2 million in 2Q22.*Current situation post-COVID *
*Passenger traffic recovery:*
During the second quarter ended June 30, 2022, passenger traffic increased 27.6% as compared to the same period of 2021 and increased 15.3% as compared to 2019, continuing to demonstrate a positive trend, due to the recovery of the tourism and business segments. This recovery developed in second quarter results for 2022 exceeding 2019 and 2021 and generating positive net cash flows above those generated in the previous periods.
*Company’s Financial Position:*
During 2Q22, results were significantly better as compared to 2Q21 because of a 35.0% increase in total revenues and an increase in cost of services of 29.4%. The Company generated positive EBITDA of Ps. 4,081.7 million, an increase of 45.9% as compared to 2Q21.
In 2Q22, operating activities continued generating positive cash flow of Ps. 3,267.6 million. The Company reported a financial position of cash and cash equivalents as of June 30, 2022 of Ps. 13,489.6 million (13.0% lower than the balance as of June 30, 2021). During 2Q22, the Company made the first installment of Ps. 7.20 (SEVEN PESOS 20/100 M.N.) per share of the dividend payment at the Annual General Shareholders Meeting. Additionally, Ps. 576.2 million in share repurchases were made during 2Q22.
*Passenger Traffic*
During 2Q22, total passengers at the Company’s 14 airports increased by 3,043.3 thousand passengers, an increase of 27.6%, compared to 2Q21 (as compared to 2Q19, total passengers increased by 1,873.6 thousand passengers, or 15.3%).
During 2Q22, the following new routes were opened:
*
National:*
*Airline* *Departure* *Arrival* *Opening date* *Frequencies*
Volaris Morelia Cancun April 2, 2022 3 weekly frequencies
Aeromexico Puerto Vallarta Santa Lucia (Mexico City) May 1, 2022 4 weekly frequencies
^Note: Frequencies can vary without prior notice.
*
International: *
*Airline* *Departure* *Arrival* *Opening date* *Frequencies*
Frontier Kingston Miami May 5, 2022 3 weekly frequencies
Frontier Guadalajara Las Vegas May 20, 2022 2 weekly frequencies
Spirit Montego Bay Philadelphia May 19, 2022 3 weekly frequencies
American Airlines Montego Bay Austin June 11, 2022 1 weekly frequency
Frontier Montego Bay Tampa June 24, 2022 2 weekly frequencies
^Note: Frequencies can vary without prior notice.
*
Domestic Terminal Passengers – 14 airports **(in thousands)**:*
*Airport* *2Q21* *2Q22* *Change* *6M21* *6M22* *Change*
Guadalajara 2,177.8 2,673.7 22.8 % 3,751.4 5,034.1 34.2 %
Tijuana * 1,773.3 2,001.0 12.8 % 3,184.1 3,821.9 20.0 %
Los Cabos 520.5 631.5 21.3 % 887.4 1,144.4 29.0 %
Puerto Vallarta 453.1 691.9 52.7 % 753.5 1,190.7 58.0 %
Montego Bay 0.0 0.0 0.0 % 0.0 0.0 0.0 %
Guanajuato 394.9 426.9 8.1 % 680.9 809.2 18.8 %
Hermosillo 360.9 481.3 33.4 % 618.5 864.5 39.8 %
Kingston 0.6 0.3 (50.9 %) 0.7 0.5 (34.3 %)
Mexicali 273.0 300.7 10.2 % 463.2 590.8 27.6 %
Morelia 146.6 165.9 13.2 % 255.7 313.5 22.6 %
La Paz 228.5 274.5 20.1 % 397.7 512.7 28.9 %
Aguascalientes 144.6 195.6 35.2 % 242.4 353.5 45.9 %
Los Mochis 91.7 107.9 17.8 % 162.6 204.0 25.5 %
Manzanillo 23.1 24.5 6.0 % 40.3 48.5 20.5 %
*Total* *6,588.6* *7,975.6* *21.1* *%* *11,438.1* *14,888.3* *30.2* *%*
^*Cross Border Xpress (CBX) users are classified as international passengers.
*
International** Terminal Passengers – 14 airports **(in thousands)**:*
*Airport* *2Q21* *2Q22* *Change* *6M21* *6M22* *Change*
Guadalajara 949.3 1,097.7 15.6 % 1,544.3 2,067.6 33.9 %
Tijuana * 737.8 1,026.6 39.1 % 1,162.6 1,949.8 67.7 %
Los Cabos 983.4 1,184.6 20.5 % 1,517.8 2,309.4 52.2 %
Puerto Vallarta 575.8 873.6 51.7 % 928.2 1,934.6 108.4 %
Montego Bay 656.8 1,160.9 76.8 % 961.5 2,089.0 117.3 %
Guanajuato 163.4 181.7 11.2 % 248.8 357.2 43.6 %
Hermosillo 25.9 19.9 (23.5 %) 45.8 38.5 (16.0 %)
Kingston 183.4 361.9 97.3 % 298.8 630.1 110.9 %
Mexicali 1.1 1.7 53.7 % 1.8 2.9 60.2 %
Morelia 101.8 117.2 15.2 % 176.9 233.5 32.1 %
La Paz 4.3 6.3 46.4 % 8.3 13.8 66.3 %
Aguascalientes 54.6 57.9 5.9 % 88.6 105.0 18.6 %
Los Mochis 2.4 2.0 (18.2 %) 4.0 3.7 (6.3 %)
Manzanillo 12.1 15.5 28.6 % 21.5 41.2 91.8 %
*Total* *4,452.2* *6,107.5* *37.2* *%* *7,008.6* *11,776.2* *68.0* *%*
^*CBX users are classified as international passengers.
*
Total Terminal Passengers **– 14 airports* *(in thousands)**:*
*Airport* *2Q21* *2Q22* *Change* *6M21* *6M22* *Change*
Guadalajara 3,127.2 3,771.4 20.6 % 5,295.7 7,101.7 34.1 %
Tijuana * 2,511.1 3,027.6 20.6 % 4,346.6 5,771.7 32.8 %
Los Cabos 1,503.9 1,816.1 20.8 % 2,405.1 3,453.7 43.6 %
Puerto Vallarta 1,028.9 1,565.5 52.2 % 1,681.8 3,125.3 85.8 %
Montego Bay 656.8 1,160.9 76.8 % 961.5 2,089.0 117.3 %
Guanajuato 558.3 608.5 9.0 % 929.7 1,166.4 25.5 %
Hermosillo 386.9 501.2 29.5 % 664.3 903.0 35.9 %
Kingston 184.0 362.2 96.9 % 299.5 630.5 110.5 %
Mexicali 274.1 302.4 10.3 % 465.0 593.7 27.7 %
Morelia 248.4 283.2 14.0 % 432.5 547.1 26.5 %
La Paz 232.9 280.8 20.6 % 406.0 526.5 29.7 %
Aguascalientes 199.3 253.4 27.2 % 330.9 458.5 38.6 %
Los Mochis 94.1 109.9 16.8 % 166.6 207.7 24.7 %
Manzanillo 35.2 40.1 13.8 % 61.7 89.7 45.3 %
*Total* *11,040.8* *14,083.1* *27.6* *%* *18,446.9* *26,664.5* *44.5* *%*
^*CBX users are classified as international passengers.
*
CBX Users **(in thousands)**:*
*Airport* *2Q21* *2Q22* *Change* *6M21* *6M22* *Change*
Tijuana 731.6 1,017.2 39.0 % 1,152.6 1,934.6 67.8 %
*Consolidated Results for the Second Quarter of 2022 **(in thousands of pesos)**:*
*2Q21* *2Q22* *Change*
*Revenues*
Aeronautical services 3,023,604 4,322,965 43.0 %
Non-aeronautical services 911,151 1,318,125 44.7 %
Improvements to concession assets (IFRIC-12) 960,983 968,994 0.8 %
*Total revenues* *4,895,738* *6,610,084* *35.0* *%*
*Operating costs*
Costs of services: *695,644* *900,467* *29.4* *%*
Employee costs 289,828 350,755 21.0 %
Maintenance 109,037 161,217 47.9 %
Safety, security & insurance 124,605 136,643 9.7 %
Utilities 95,591 119,569 25.1 %
Other operating expenses 76,583 132,283 72.7 %
Technical assistance fees 135,441 190,226 40.4 %
Concession taxes 303,817 473,457 55.8 %
Depreciation and amortization 510,380 563,114 10.3 %
Cost of improvements to concession assets (IFRIC-12) 960,983 968,994 0.8 %
Other (income) 2,712 (4,761 ) (275.6 %)
*Total operating costs* *2,608,977* *3,091,497* *18.5* *%*
*Income from operations* *2,286,761* *3,518,587* *53.9* *%*
Financial Result (406,199 ) (288,116 ) (29.1 %)
*Income before income taxes * *1,880,561* *3,230,471* *71.8* *%*
Income taxes (456,589 ) (865,835 ) 89.6 %
*Net income * *1,423,972* *2,364,636* *66.1* *%*
Currency translation effect (146,953 ) (161,220 ) 9.7 %Cash flow hedges, net of income tax 23,233 45,635 96.4 %
Remeasurements of employee benefit – net income tax 735 103 (86.0 %)
*Comprehensive income * *1,300,987* *2,249,154* *72.9* *%*
Non-controlling interest 13,545 (51,631 ) (481.2 %)
*Comprehensive income attributable to controlling interest* *1,314,532* *2,197,523* *67.2* *%* *2Q21* *2Q22* *Change*
EBITDA 2,797,141 4,081,701 45.9 %
Comprehensive income 1,300,987 2,249,154 72.9 %
Comprehensive income per share (pesos) 2.5018 4.4230 76.8 %
Comprehensive income per ADS (US dollars) 1.2436 2.1985 76.8 %
Operating income margin 46.7 % 53.2 % 14.0 %
Operating income margin (excluding IFRIC-12) 58.1 % 62.4 % 7.3 %
EBITDA margin 57.1 % 61.7 % 8.1 %
EBITDA margin (excluding IFRIC-12) 71.2 % 72.4 % 1.6 %
Costs of services and improvements / total revenues 33.8 % 28.3 % (16.4 %)
Cost of services / total revenues (excluding IFRIC-12) 17.7 % 16.0 % (9.7 %)
^- Net income and comprehensive income per share for 2Q22 were calculated based on 508,510,018 shares outstanding as of June 30, 2022 and for 2Q21 were calculated based on 520,024,505 shares outstanding as of June 30, 2021. U.S. dollar figures presented were converted from pesos to U.S. dollars at a rate of Ps. 20.1180 per U.S. dollar (the noon buying rate on June 30, 2022, as published by the U.S. Federal Reserve Board).
^- For purposes of the consolidation of the airports in Jamaica, the average three-month exchange rate of Ps. 20.0414 per U.S. dollar for the three months ended June 30, 2022 was used.
*Revenues (2Q22 vs. 2Q21)*
· *Aeronautical services revenues increased by Ps. 1,299.4 million, or 43.0%.*
· *Non-aeronautical services revenues increased by Ps. 407.0 million, or 44.7%.*
· *Revenues from improvements to concession assets increased by Ps. 8.0 million, or 0.8%.*
· *Total revenues increased by Ps. 1,714.3 million, or 35.0%.*
· The change in* aeronautical services revenues *was composed primarily of the following factors:
1. Revenues at our *Mexican airports* increased by Ps. 995.3 million or 37.4% compared to 2Q21, mainly due to the 23.1% increase in passenger traffic and the adjustment in maximum rates as a result of inflation. 2. Revenues from the *Montego Bay airport* increased by Ps. 200.0 million, or 80.7%, compared to 2Q21. This was mainly due to the 76.8% increase in passenger traffic. During 2Q22, there was a 0.2% appreciation of the peso versus the U.S. dollar, which went from an average exchange rate of Ps. 20.0503 in 2Q21 to Ps. 20.0414 in 2Q22. 3. Revenues from the *Kingston airport* increased by Ps. 104.1 million, or 88.4% compared to 2Q21, mainly due to a 96.7% increase in passenger traffic.
· The change in* non-aeronautical services revenues *was composed primarily of the following factors:
1. Revenues at our *Mexican airports *increased by Ps. 326.6 million, or 42.9%, compared to 2Q21. Revenues from businesses operated by third parties increased by Ps. 200.8 million, or 38.5%. This was mainly due to the recovery of passenger traffic that resulted in revenue sharing percentages that surpassed minimum guaranteed rents. The business lines that increased the most were food and beverage, retail tenants, car rentals, duty-free stores, time shares and ground transportation, which jointly increased by Ps. 176.7 million, or 41.1%. Revenues from businesses operated directly by us increased by Ps. 122.8 million, or 61.2%, while the recovery of costs increased by Ps. 2.9 million, or 7.6%. 2. Revenues from the *Montego Bay airport* increased by Ps. 61.6 million, or 53.2%, compared to 2Q21. Revenues in U.S. dollars increased US$ 3.1 million, or 55.2%. 3. Revenues from the *Kingston airport* increased by Ps. 18.8 million, or 55.2%, compared to 2Q21. Revenues in U.S. dollars increased US$ 0.9 million, or 60.7%. *2Q21* *2Q22* *Change*
Businesses operated by third parties:
Duty-free 141,095 179,811 27.4 %
Food and beverage 122,340 204,591 67.2 %
Retail 100,186 162,207 61.9 %
Car rentals 94,946 132,392 39.4 %
Leasing of space 61,215 77,943 27.3 %
Time shares 49,656 58,189 17.2 %
Ground transportation 34,431 42,791 24.3 %
Communications and financial services 22,524 25,473 13.1 %
Other commercial revenues 31,427 47,831 52.2 %
*Total* *657,820* *931,226* *41.6* *%*
Businesses operated directly by us:
Car parking 97,921 136,589 39.5 %
VIP lounges 52,638 94,632 79.8 %
Advertising 11,414 21,927 92.1 %
Convenience stores 43,852 77,973 77.8 %
*Total* *205,826* *331,120* *60.9* *%*
Recovery of costs 47,504 55,777 17.4 %
*Total Non-aeronautical Revenues * *911,150* *1,318,125* *44.7* *%*
^Figures expressed in thousands of Mexican pesos.
· *Revenues from improvements to concession assets*^1
Revenues from improvements to concession assets (IFRIC12) increased by Ps. 8.0 million, or 0.8%, compared to 2Q21. The change was composed primarily of:
1. The Company’s Mexican airports, which increased by Ps. 11.3 million, or 1.2%, 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. 3.3 million, or 15.2%. During 2Q22, no improvements to concession assets were made at the Kingston airport.
*Total operating costs increased by Ps. 482.5 million, or 18.5%,* compared to 2Q21, mainly due to a combined Ps. 224.4 million, or 51.1%, increase in concession taxes and technical assistance fees, a Ps. 204.8 million, or 29.4%, increase in cost of services, a Ps. 52.7 million, or 10.3%, increase in depreciation and amortization and a Ps. 8.0 million, or 0.8% increase in the cost of improvements to the concession assets (IFRIC12), *(excluding the cost of improvements to concession assets, operating costs increased Ps. 474.5 million, or 28.8%).*
This increase in total operating costs was composed primarily of the following factors:
*Mexican Airports: *
· *Operating costs* *increased by Ps. 352.6 million, or 16.2%,* compared to 2Q21, primarily due to a Ps. 176.2 million, or 32.4%, increase in cost of services, a combined Ps. 110.8 million, or 36.3%, increase in technical assistance fees and concession taxes, a Ps. 55.0 million, or 14.3%, increase in depreciation and amortization, and a Ps. 11.3 million, or 1.2%, increase in the cost of improvements to the concession assets (IFRIC12), *(excluding the cost of improvements to the concession assets (IFRIC12), operating costs increased by **Ps. 341.3 million or 27.7%)*.The change in the cost of services during 2Q22 was mainly due to:
· *Employee costs* increased Ps. 56.8 million, or 23.7%, compared to 2Q21, mainly due to the hiring of additional personnel as required for airport operations due to the recovery of passenger traffic and the changes in Mexico’s labor laws during 2Q21.
· *Other operating expenses *increased Ps. 55.5 million or 88.1%, compared to 2Q21, mainly due to a combined increase of Ps. 51.6 million, jointly, in the cost of goods and services for our VIP lounges and convenience stores due to the increase in sales of these business lines, increase in FBO services, professional fees and travel expenses.
· *Maintenance costs *increased by Ps. 44.2 million, or 49.7%, compared to 2Q21.
· *Safety, security and insurance costs* increased Ps. 11.6 million, or 13.0%, compared to 2Q21, mainly due to an increase in the number of security staff and the reopening of certain operational areas.
· *Cost of services increased* by Ps. 12.0 million or 11.0%, compared to 2Q21, mainly due to the increase in energy consumption derived from the opening of new operating areas, fuel and the increase in water quotas.*Montego Bay Airport:*
· *Operating costs increased by Ps. 47.1 million, or 16.6%,* compared to 2Q21, mainly due to a Ps. 37.5 million, or 90.7%, increase in concession taxes, a Ps. 20.9 million, or 22.7%, increase in the cost of services, and partially offset by decreases of Ps. 5.6 million in other income and a Ps. 3.2 million, or 15.2%, in the cost of improvements to concession assets (IFRIC-12).*Kingston Airport:*
· *Operating costs increased by Ps. 82.8 million, or 53.8%,* compared to 2Q21, mainly due to a Ps. 76.1 million, or 82.5%, increase in concession taxes, and a Ps. 7.7 million, or 13.1%, increase in the cost of services.*Operating margin* went from 46.7% in 2Q21 to 53.2% in 2Q22. Excluding the effects of IFRIC-12, operating margin went from 58.1% in 2Q21 to 62.4% in 2Q22. Operating income increased Ps. 1,231.8 million, or 53.9%, compared to 2Q21.
*EBITDA margin *went from 57.1% in 2Q21 to 61.7% in 2Q22. Excluding the effects of IFRIC-12, EBITDA margin went from 71.2% in 2Q21 to 72.4% in 2Q22. *The nominal value of EBITDA increased Ps. 1,284.6 million, or 45.9%, compared to 2Q21.*
*Financial cost* decreased by *Ps. 118.1 million, or 29.1%, *from a net expense of Ps. 406.2 million in 2Q21 to a net expense of Ps. 288.1 million in 2Q22. This change was mainly the result of:
· *Foreign exchange rate fluctuations, *which went from an expense of Ps. 102.0 million in 2Q21 to income of Ps. 81.2 million in 2Q22. This *generated an increase in the foreign exchange gain of Ps. 183.2 million.* Currency translation effect income increased Ps. 14.3 million, compared to 2Q21.· *Interest expenses increased by Ps. 178.5 million, or 43.5%, *compared to 2Q21, mainly due to higher debt as a result of the issuance of long-term debt securities and the increase in interest rates.· *Interest income increased by Ps. 113.4 million, or 106.6%, *compared to 2Q21, mainly due to an increase in the reference interest rates.*In 2Q22, comprehensive income increased Ps. 948.2 million, or 72.9%,* compared to 2Q21. This increase was mainly due to a Ps. 1,349.9 million increase in profit before taxes derived from the increase in passenger traffic. This increase was partially offset by an increase in income taxes of Ps. 409.2 million and a currency translation effect increase of Ps. 14.3 million.
*During 2Q22, net income increased by Ps. 940.7 million, or 66.1%*, compared to 2Q21. Income taxes increased by Ps. 481.4 million and were partially offset by a Ps. 72.2 million increase in the benefit for deferred taxes, mainly due an increase in the inflation rate, from 0.9% in 2Q21 to 1.5% in 2Q22.
*Consolidated Results for the Six Months of 2022 **(in thousands of pesos)**:*
*6M21* *6M22* *Change*
*Revenues*
Aeronautical services 5,096,371 8,177,197 60.5 %
Non-aeronautical services 1,547,138 2,486,037 60.7 %
Improvements to concession assets (IFRIC-12) 1,890,226 1,959,448 3.7 %
*Total revenues* *8,533,734* *12,622,683* *47.9* *%*
*Operating costs*
Costs of services: *1,348,342* *1,653,991* *22.7* *%*
Employee costs 533,462 639,273 19.8 %
Maintenance 203,476 286,247 40.7 %
Safety, security & insurance 248,431 262,817 5.8 %
Utilities 172,764 215,650 24.8 %
Other operating expenses 190,209 250,004 31.4 %
Technical assistance fees 223,798 364,372 62.8 %
Concession taxes 517,657 873,223 68.7 %
Depreciation and amortization 1,013,125 1,127,647 11.3 %
Cost of improvements to concession assets (IFRIC-12) 1,890,226 1,959,448 3.7 %
Other (income) (637 ) (18,473 ) 2798.0 %
*Total operating costs* *4,992,510* *5,960,209* *19.4* *%*
*Income from operations* *3,541,224* *6,662,474* *88.1* *%*
Financial Result (485,505 ) (561,062 ) 15.6 %
*Income before income taxes * *3,055,722* *6,101,412* *99.7* *%*
Income taxes (594,170 ) (1,409,324 ) 137.2 %
*Net income * *2,461,552* *4,692,089* *90.6* *%*
Currency translation effect (85,224 ) (339,551 ) 298.4 %Cash flow hedges, net of income tax 240,027 137,387 (42.8 %)
Remeasurements of employee benefit – net income tax 1,837 205 88.8 %
*Comprehensive income * *2,618,192* *4,490,130* *71.5* *%*
Non-controlling interest 650 (70,658 ) (10973.4 %)
*Comprehensive income attributable to controlling interest* *2,618,842* *4,419,472* *68.8* *%* *6M21* *6M22* *Change*
EBITDA 4,554,349 7,790,121 71.0 %
Comprehensive income 2,618,192 4,490,130 71.5 %
Comprehensive income per share (pesos) 5.0347 8.8300 75.4 %
Comprehensive income per ADS (US dollars) 2.5026 4.3891 75.4 %
Operating income margin 41.5 % 52.8 % 27.2 %
Operating income margin (excluding IFRIC-12) 53.3 % 62.5 % 17.2 %
EBITDA margin 53.4 % 61.7 % 15.6 %
EBITDA margin (excluding IFRIC-12) 68.6 % 73.1 % 6.6 %
Costs of services and improvements / total revenues 38.0 % 28.6 % (24.6 %)
Cost of services / total revenues (excluding IFRIC-12) 20.3 % 15.5 % (23.6 %)
^- Net income and comprehensive income per share for 6M22 were calculated based on 508,510,018 shares outstanding as of June 30, 2022 and for 6M21 were calculated based on 520,024,505 shares outstanding as of June 30, 2021. U.S. dollar figures presented were converted from pesos to U.S. dollars at a rate of Ps. 20.1180 per U.S. dollar (the noon buying rate on June 30, 2022, as published by the U.S. Federal Reserve Board).
^- For purposes of the consolidation of the airports in Jamaica, the average six-month exchange rate of Ps. 20.2822 per U.S. dollar for the six months ended June 30, 2022 was used.
*Revenues (6M22 vs. 6M21)*
· *Aeronautical services revenues increased by Ps. 3,080.8 million, or 60.5%.*
· *Non-aeronautical services revenues increased by Ps. 938.9 million, or 60.7%.*
· *Revenues from improvements to concession assets increased by Ps. 69.2 million, or 3.7%.*
· *Total revenues increased by Ps. 4,088.9 million, or 47.9%.*
· The change in* aeronautical services revenues *was composed primarily of the following factors:
1. Revenues at our *Mexican airports* increased by Ps. 2,430.5 million or 53.9% compared to 6M21, mainly due to the 39.3% increase in passenger traffic and the adjustment in maximum rates as a result of inflation. 2. Revenues from the *Montego Bay airport* increased by Ps. 451.4 million, or 117.8%, compared to 6M21. This was mainly due to the 117.3% increase in passenger traffic. During 6M22, there was a 0.5% depreciation of the peso versus the U.S. dollar, which went from an average exchange rate of Ps. 20.1847 in 6M21 to Ps. 20.2822 in 6M22. 3. Revenues from the *Kingston airport* increased by Ps. 198.9 million, or 99.5% compared to 6M21, mainly due to a 110.5% increase in passenger traffic.
· The change in* non-aeronautical services revenues *was composed primarily of the following factors:
1. Revenues at our *Mexican airports *increased by Ps. 763.1 million, or 59.0%, compared to 6M21. Revenues from businesses operated by third parties increased by Ps. 492.6 million, or 55.5%. This was mainly due to the recovery of passenger traffic that resulted in revenue sharing percentages that surpassed minimum guaranteed rents. The business lines that increased the most were food and beverage, retail, car rentals, duty-free stores and other revenues, which jointly increased by Ps. 446.3 million, or 63.1%. Revenues from businesses operated directly by us increased by Ps. 258.6 million, or 77.2%, while the recovery of costs increased by Ps. 11.9 million, or 16.9%. 2. Revenues from the *Montego Bay airport* increased by Ps. 138.3 million, or 71.6%, compared to 6M21. Revenues in U.S. dollars increased US$ 6.8 million, or 70.8%. 3. Revenues from the *Kingston airport* increased by Ps. 37.5 million, or 61.0%, compared to 6M21. Revenues in U.S. dollars increased US$ 1.8 million, or 60.2%. *6M21* *6M22* *Change*
Businesses operated by third parties:
Duty-free 222,438 341,795 53.7 %
Food and beverage 203,829 373,749 83.4 %
Retail 165,662 296,652 79.1 %
Car rentals 175,653 262,211 49.3 %
Leasing of space 110,244 143,152 29.9 %
Time shares 80,020 119,370 49.2 %
Ground transportation 61,072 85,251 39.6 %
Communications and financial services 38,875 50,951 31.1 %
Other commercial revenues 58,321 96,352 65.2 %
*Total* *1,116,116* *1,769,484* *58.5* *%*
Businesses operated directly by us:
Car parking 167,265 252,109 50.7 %
VIP lounges 84,410 175,067 107.4 %
Advertising 21,857 37,240 70.4 %
Convenience stores 69,045 142,990 107.1 %
*Total* *342,577* *607,406* *77.3* *%*
Recovery of costs 88,445 109,148 23.4 %
*Total Non-aeronautical Revenues * *1,547,138* *2,486,037* *60.7* *%*
^Figures expressed in thousands of Mexican pesos.
· *Revenues from improvements to concession assets*^2
Revenues from improvements to concession assets (IFRIC12) increased by Ps. 69.2 million, or 3.7%, compared to 6M21. The change was composed primarily of:
1. The Company’s Mexican airports, which increased by Ps. 57.4 million, or 3.1%, 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 increased Ps. 11.8 million, or 28.7%. During 6M22, no improvements to concession assets were made at the Kingston airport.
*Total operating costs* increased by Ps. 967.7 million, or 19.4%, compared to 6M21, mainly due to a combined Ps. 496.1 million, or 66.9%, increase in concession taxes and technical assistance fees, a Ps. 305.6 million, or 22.7%, increase in cost of services, and a Ps. 114.5 million, or 11.3%, increase in depreciation and amortization and a Ps. 69.2 million, or 3.7% increase in the cost of improvements to the concession assets (IFRIC12), *(excluding the cost of improvements to concession assets, operating costs increased Ps. 898.5 million, or 29.0%).*
This increase in total operating costs was composed primarily of the following factors:
*Mexican Airports: *
· Operating costs *increased by Ps. 694.0 million, or 16.6%,* compared to 6M21, primarily due to a combined Ps. 282.3 million, or 55.0%, increase in technical assistance fees and concession taxes, a Ps. 241.2 million, or 23.0%, increase in cost of services, a Ps. 114.7 million, or 15.0%, increase in depreciation and amortization, and a Ps. 57.4 million, or 3.1%, increase in the cost of improvements to the concession assets (IFRIC12), *(excluding the cost of improvements to the concession assets (IFRIC12), operating costs increased by **Ps. 636.5 million or 27.4%)*.The change in the cost of services during 6M22 was mainly due to:
· *Employee costs* increased Ps. 96.2 million, or 22.0%, compared to 6M21, mainly due to the hiring of additional personnel as required for airport operations due to the recovery of passenger traffic and the changes in Mexico’s labor laws during 6M21.
· *Maintenance costs *increased by Ps. 63.4 million, or 38.3%, compared to 6M21.
· *Other operating expenses *increased Ps. 52.6 million or 32.8%, compared to 6M21, mainly due to a combined increase of Ps. 69.9 million in the cost of goods and services for our VIP lounges and convenience stores, FBO services, professional fees and travel expenses. This increase was partially offset by a Ps. 17.6 million reduction in the allowance for credit losses.
· *Safety, security and insurance costs* increased Ps. 17.0 million, or 9.7%, compared to 6M21, mainly due to an increase in the number of security staff.
· *Cost of services* increased by Ps. 8.2 million or 12.8%, compared to 6M21, mainly due to the increase in energy consumption derived from the opening of new operating areas, fuel and the increase in water quotas.*Montego Bay Airport:*
· *Operating costs increased by Ps. 106.1 million, or 19.4%,* compared to 6M21, mainly due to a Ps. 68.1 million, or 97.2%, increase in concession taxes and a Ps. 41.7 million, or 22.5%, increase in the cost of services.*Kingston Airport:*
· *Operating costs increased by Ps. 167.6 million, or 60.2%,* compared to 6M21, mainly due to a Ps. 145.8 million, or 91.9%, increase in concession taxes, and a Ps. 22.7 million, or 19.9%, increase in the cost of services.*Operating margin* went from 41.5% in 6M21 to 52.8% in 6M22. Excluding the effects of IFRIC-12, operating margin went from 53.3% in 6M21 to 62.5% in 6M22. Operating income increased Ps. 3,121.2 million, or 88.1%, compared to 6M21.
*EBITDA margin *went from 53.4% in 6M21 to 61.7% in 6M22. Excluding the effects of IFRIC-12, EBITDA margin went from 68.6% in 6M21 to 73.1% in 6M22. *The nominal value of EBITDA increased Ps. 3,235.8 million, or 71.0%, *compared to 6M21.
*Financial cost* increased by *Ps. 75.6 million, or 15.6%, *from a net expense of Ps. 485.5 million in 6M21 to a net expense of Ps. 561.1 million in 6M22. This change was mainly the result of:
· *Foreign exchange rate fluctuations, *which went from income of Ps. 117.5 million in 6M21 to income of Ps. 133.9 million in 6M22. This *generated an increase in the foreign exchange gain of Ps. 16.3 million.* Currency translation effect expense increased Ps. 254.3 million, compared to 6M21.· *Interest expenses increased by Ps. 266.1 million, or 33.4%, *compared to 6M21, mainly due to higher debt as a result of the issuance of long-term debt securities and the increase in interest rates.· *Interest income increased by Ps. 174.3 million, or 90.2%, *compared to 6M21, mainly due to an increase in the reference interest rates.*In 6M22, comprehensive income increased Ps. 1,871.9 million, or 71.5%,* compared to 6M21. This increase was mainly due to a Ps. 3,045.7 million increase in profit before taxes derived from the increase in passenger traffic. This increase was partially offset by an increase in income taxes of Ps. 815.2 million and a Ps. 967.7 million increase in operating costs.
*During 6M22, net income increased by Ps. 2,230.5 million, or 90.6%*, compared to 6M21. Income taxes increased by Ps. 931.6 million and were partially offset by a Ps. 116.4 million increase in the benefit for deferred taxes, mainly due an increase in the inflation rate, from 3.4% in 6M21 to 4.0% in 6M22.
*Statement of Financial Position*
Total assets as of June 30, 2022 increased by Ps. 3,427.5 million as compared to June 30, 2021, primarily due to the following items: (i) a Ps. 3,093.9 million increase in improvements to concession assets; (ii) a Ps. 2,109.5 million increase in machinery, equipment and leasehold improvements and payment in advance to suppliers; and (iii) a Ps. 409.1 million increase in accounts receivable from customers. This increase was partially offset by a Ps. 2,013.4 million decrease in cash and cash equivalents, among others.
Total liabilities as of June 30, 2022 increased by Ps. 9,289.6 million compared to June 30, 2021. This increase was primarily due to the following items: (i) issuance of Ps. 4,500.0 million in long-term debt securities, (ii) Ps. 3,675.8 million in dividends pending payment, (iii) Ps. 1,332.2 million in accounts payable and (iv) Ps. 140.5 million in security deposits. This increase was partially offset by decreases of: (i) Ps. 203.6 million in derivative financial instruments and (ii) Ps. 112.3 million in bank loans, among others.*Recent Events *
· On May 16, 2022 the Company paid the Ps. 7.2 per share, corresponding to the first installment of the dividend payment approved at the Ordinary Annual General Meeting of Shareholders held on April 22, 2022.· The estimated growth guidance for the year 2022 is updated:
*GUIDANCE* *2022 vs 2021*
*Traffic* *26% - 30%*
*Aeronautical Revenue* *34% - 38%*
*Non-aeronautical Revenue* *31% - 35%*
*Total Revenue* *33% - 37%*
*EBITDA* *33% - 37%*
*EBITDA Margin* *71% +- 1%*
*CAPEX* *Ps. 8.0 billion*
*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):*
*Airport* *2Q21* *2Q22* *Change* *6M21* *6M22* *Change*
*Guadalajara*
Aeronautical services 801,607 1,091,357 36.1 % 1,428,326 2,071,302 45.0 %
Non-aeronautical services 210,343 216,792 3.1 % 372,292 422,229 13.4 %
Improvements to concession assets (IFRIC 12) 281,771 499,974 77.4 % 563,542 999,947 77.4 %
*Total Revenues* *1,293,721* *1,808,122* *39.8* *%* *2,364,160* *3,493,478* *47.8* *%*
Operating income 663,821 910,971 37.2 % 1,144,946 1,731,102 51.2 %
*EBITDA* *756,372* *1,022,052* *35.1* *%* *1,340,433* *1,958,926* *46.1* *%*
*Tijuana*
Aeronautical services 502,450 648,990 29.2 % 834,812 1,195,550 43.2 %
Non-aeronautical services 114,282 132,349 15.8 % 201,045 250,104 24.4 %
Improvements to concession assets (IFRIC 12) 408,844 85,505 (79.1 %) 814,066 171,011 (79.0 %)
*Total Revenues* *1,025,577* *866,844* *(15.5* *%)* *1,849,922* *1,616,665* *(12.6* *%)*
Operating income 413,895 530,526 28.2 % 644,763 984,083 52.6 %
*EBITDA* *475,112* *615,010* *29.4* *%* *774,446* *1,142,501* *47.5* *%*
*Los Cabos*
Aeronautical services 539,396 716,852 32.9 % 863,610 1,346,328 55.9 %
Non-aeronautical services 217,022 282,441 30.1 % 346,133 539,293 55.8 %
Improvements to concession assets (IFRIC 12) 124,067 63,265 (49.0 %) 222,815 126,531 (43.2 %)
*Total Revenues* *880,484* *1,062,558* *20.7* *%* *1,432,558* *2,012,152* *40.5* *%*
Operating income 548,325 726,211 32.4 % 819,034 1,366,159 66.8 %
*EBITDA* *610,502* *802,926* *31.5* *%* *945,321* *1,515,514* *60.3* *%*
*Puerto Vallarta*
Aeronautical services 329,995 581,969 76.4 % 555,761 1,178,108 112.0 %
Non-aeronautical services 106,473 145,901 37.0 % 175,514 273,835 56.0 %
Improvements to concession assets (IFRIC 12) 78,275 199,303 154.6 % 155,633 398,606 156.1 %
*Total Revenues* *514,743* *927,173* *80.1* *%* *886,909* *1,850,548* *108.7* *%*
Operating income 289,658 537,446 85.5 % 453,018 1,094,742 141.7 %
*EBITDA* *332,049* *587,085* *76.8* *%* *542,136* *1,190,105* *119.5* *%*
*Montego Bay*
Aeronautical services 247,781 447,794 80.7 % 383,205 834,615 117.8 %
Non-aeronautical services 115,814 177,388 53.2 % 193,051 331,340 71.6 %
Improvements to concession assets (IFRIC 12) 21,577 18,299 (15.2 %) 41,273 53,106 28.7 %
*Total Revenues* *385,172* *643,480* *67.1* *%* *617,529* *1,219,061* *97.4* *%*
Operating income 102,791 313,902 205.4 % 72,485 558,297 670.2 %
*EBITDA* *224,576* *433,339* *93.0* *%* *315,892* *801,256* *153.6* *%**Exhibit A: Operating results by airport **(in thousands of pesos): *(continued)
*Airport* *2Q21* *2Q22* *Change* *6M21* *6M22* *Change*
*Guanajuato*
Aeronautical services 148,653 178,794 20.3 % 248,529 339,014 36.4 %
Non-aeronautical services 36,051 36,530 1.3 % 62,570 73,570 17.6 %
Improvements to concession assets (IFRIC 12) 3,094 10,647 244.2 % 6,187 21,294 244.2 %
*Total Revenues* *187,798* *225,971* *20.3* *%* *317,287* *433,878* *36.7* *%*
Operating income 116,878 137,343 17.5 % 186,058 265,810 42.9 %
*EBITDA* *135,633* *158,241* *16.7* *%* *223,356* *306,696* *37.3* *%*
*Hermosillo*
Aeronautical services 82,214 117,613 43.1 % 143,002 210,503 47.2 %
Non-aeronautical services 19,910 20,277 1.8 % 35,761 35,922 0.4 %
Improvements to concession assets (IFRIC 12) 4,341 16,897 289.2 % 8,682 33,793 289.2 %
*Total Revenues* *106,465* *154,787* *45.4* *%* *187,446* *280,219* *49.5* *%*
Operating income 47,961 73,020 52.2 % 70,345 127,608 81.4 %
*EBITDA* *66,432* *95,217* *43.3* *%* *109,106* *170,926* *56.7* *%*
*Others* (1)
Aeronautical services 371,509 539,595 45.2 % 639,127 1,001,775 56.7 %
Non-aeronautical services 89,727 102,952 14.7 % 158,359 196,756 24.2 %
Improvements to concession assets (IFRIC 12) 39,014 75,104 92.5 % 78,027 155,160 98.9 %
*Total Revenues* *500,250* *717,651* *43.5* *%* *875,513* *1,353,693* *54.6* *%*
Operating income 118,958 186,228 56.5 % 134,498 342,672 154.8 %
*EBITDA* *182,761* *258,708* *41.6* *%* *264,510* *485,080* *83.4* *%*
*Total *
Aeronautical services 3,023,604 4,322,963 43.0 % 5,096,371 8,177,196 60.5 %
Non-aeronautical services 909,622 1,114,629 22.5 % 1,544,725 2,123,050 37.4 %
Improvements to concession assets (IFRIC 12) 960,983 968,994 0.8 % 1,890,226 1,959,448 3.7 %
*Total Revenues* *4,894,209* *6,406,586* *30.9* *%* *8,531,322* *12,259,695* *43.7* *%*
Operating income 2,302,287 3,415,646 48.4 % 3,525,147 6,470,472 83.6 %
*EBITDA* *2,783,437* *3,972,578* *42.7* *%* *4,515,200* *7,571,005* *67.7* *%*
^(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 June 30 **(in thousands of pesos)**:*
*2021* *2022* *Change * *%*
*Assets*
Current assets
Cash and cash equivalents 15,502,987 13,489,562 (2,013,425 ) (13.0 %)
Trade accounts receivable - Net 1,555,349 1,964,410 409,061 26.3 %
Other current assets 1,215,368 696,457 (518,911 ) (42.7 %)
*Total current assets* *18,273,704* *16,150,429* *(2,123,275* *)* *(11.6* *%)*
Advanced payments to suppliers 627,829 1,619,117 991,288 157.9 %
Machinery, equipment and improvements to leased buildings - Net 2,468,753 3,586,973 1,118,220 45.3 %
Improvements to concession assets - Net 14,004,941 17,098,809 3,093,868 22.1 %
Airport concessions - Net 10,404,130 10,000,663 (403,467 ) (3.9 %)
Rights to use airport facilities - Net 1,245,103 1,171,708 (73,395 ) (5.9 %)
Deferred income taxes - Net 6,043,134 6,469,200 426,066 7.1 %
Other non-current assets 157,094 555,287 398,193 253.5 %
*Total assets* *53,224,688* *56,652,185* *3,427,498* *6.4* *%*
*Liabilities *
Current liabilities 5,390,130 10,301,328 4,911,198 91.1 %
Long-term liabilities 25,574,660 29,953,067 4,378,407 17.1 %
*Total liabilities* *30,964,790* *40,254,394* *9,289,605* *30.0* *%*
*Stockholders' Equity*
Common stock 4,185,082 8,197,536 4,012,454 95.9 %
Legal reserve 1,592,551 34,076 (1,558,475 ) (97.9 %)
Net income 2,463,307 4,607,230 2,143,923 87.0 %
Retained earnings 9,927,597 136,704 (9,790,893 ) (98.6 %)
Reserve for share repurchase 5,264,666 2,499,473 (2,765,193 ) (52.5 %)
Repurchased shares (2,944,448 ) (1,075,703 ) 1,868,745 (63.5 %)
Foreign currency translation reserve 951,116 708,882 (242,234 ) (25.5 %)
Remeasurements of employee benefit – Net (8,215 ) 5,416 13,631 165.9 %
Cash flow hedges- Net (231,080 ) 167,051 398,131 172.3 %
*Total controlling interest* *21,200,576* *15,280,664* *(5,919,911* *)* *(27.9* *%)*
Non-controlling interest 1,059,323 1,117,126 57,804 5.5 %
*Total stockholder's equity* *22,259,899* *16,397,790* *(5,862,107* *)* *(26.3* *%)*
*Total liabilities and stockholders' equity* *53,224,688* *56,652,185* *3,427,498* *6.4* *%*
^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):*
*2Q21* *2Q22* *Change* *6M21* *6M22* *Change*
*Cash flows from operating activities:*
Consolidated net income 1,423,973 2,364,636 66.1 % 2,461,552 4,692,089 90.6 %
Postemployment benefit costs 7,771 8,527 9.7 % 16,671 17,132 2.8 %
Allowance expected credit loss (2,455 ) (2,161 ) (12.0 %) 21,070 (3,845 ) (118.2 %)
Depreciation and amortization 510,380 563,114 10.3 % 1,013,125 1,127,647 11.3 %
Loss on sale of machinery, equipment and improvements to leased assets 739 2,069 180.0 % 1,335 2,359 76.8 %
Interest expense 419,651 568,881 35.6 % 800,790 1,044,288 30.4 %
Provisions 6,635 5,052 (23.9 %) (5,678 ) 12,539 (320.8 %)
Income tax expense 456,589 865,835 89.6 % 594,170 1,409,324 137.2 %
Unrealized exchange loss (226,877 ) (57,193 ) (74.8 %) (63,839 ) (181,512 ) 184.3 %
Net (gain) on derivative financial instruments - (172 ) 100.0 % - (6,937 ) 100.0 % *2,596,412* *4,318,588* *66.3* *%* *4,839,196* *8,113,083* *67.7* *%*
*Changes in working capital:*
(Increase) decrease in
Trade accounts receivable (243,232 ) (129,179 ) (46.9 %) (316,920 ) (250,644 ) (20.9 %)
Recoverable tax on assets and other assets (18,877 ) 313,306 (1759.7 %) (75,310 ) 439,042 (683.0 %)
(Decrease) increase
Concession taxes payable 103,830 (572 ) (100.6 %) 60,738 (38,062 ) (162.7 %)
Accounts payable 174,976 129,053 (26.2 %) 216,617 (63,716 ) (129.4 %)
*Cash generated by operating activities* *2,613,109* *4,631,196* *77.2* *%* *4,724,322* *8,199,704* *73.6* *%*
Income taxes paid (82,750 ) (1,363,552 ) 1547.8 % (385,099 ) (2,763,408 ) 617.6 %
*Net cash flows provided by operating activities* *2,530,359* *3,267,644* *29.1* *%* *4,339,223* *5,436,296* *25.3* *%*
*Cash flows from investing activities:*
Machinery, equipment and improvements to concession assets (849,081 ) (1,978,035 ) 133.0 % (1,679,015 ) (3,095,635 ) 84.4 %
Cash flows from sales of machinery and equipment 2,296 176 (92.3 %) 2,947 283 (90.4 %)
Other investment activities (27,577 ) (5,545 ) (79.9 %) (24,372 ) (28,219 ) 15.8 %
*Net cash used by investment activities* *(874,362* *)* *(1,983,404* *)* *126.8* *%* *(1,700,441* *)* *(3,123,570* *)* *83.7* *%*
*Cash flows from financing activities:*
Dividends declared and paid - (3,675,745 ) 100.0 % - (3,675,745 ) 100.0 %
Dividends declared and paid non-controlling interest - (155,159 ) 100.0 % - (155,159 ) (100.0 %)
Capital Reduction (2,000,000 ) - (100.0 %) (2,000,000 ) - (100.0 %)
Bond certificates issued 4,500,000 - (100.0 %) 4,500,000 5,000,000 11.1 %
Bond certificates paid - - - - (1,500,000 ) (100.0 %)
Bank loans paid (2,080,739 ) (81,129 ) (96.1 %) (5,860,151 ) (3,959,132 ) (32.4 %)
Banks loans - - - 3,779,413 3,872,783 2.5 %
Repurchase of shares (872,890 ) (576,230 ) (34.0 %) (1,211,074 ) (1,075,703 ) (11.2 %)
Interest paid (433,039 ) (581,227 ) 34.2 % (772,236 ) (941,482 ) 21.9 %
Interest paid on lease (438 ) (1,468 ) 235.2 % (940 ) (2,661 ) 183.2 %
Payments of obligations for leasing (2,985 ) (4,217 ) 41.3 % (6,045 ) (7,703 ) 27.4 %
*Net cash flows used in financing activities* *(890,091* *)* *(5,075,175* *)* *470.2* *%* *(1,571,033* *)* *(2,444,802* *)* *55.6* *%*
Effects of exchange rate changes on cash held 8,698 380,609 4275.8 % (9,311 ) 288,762 (3201.2 %)
Net increase (decrease) in cash and cash equivalents 774,596 (3,410,326 ) (540.3 %) 1,058,438 156,685 (85.2 %)
*Cash and cash equivalents at beginning of the period* *14,728,391* *16,899,887* *14.7* *%* *14,444,549* *13,332,877* *(7.7* *%)*
*Cash and cash equivalents at the end of the period* *15,502,987* *13,489,562* *(13.0* *%)* *15,502,987* *13,489,562* *(13.0* *%)*
*Exhibit D: Consolidated statements of profit or loss and other comprehensive income **(in thousands of pesos)**:*
*2Q21* *2Q22* *Change* *6M21* *6M22* *Change*
*Revenues*
Aeronautical services 3,023,604 4,322,965 43.0 % 5,096,371 8,177,197 60.5 %
Non-aeronautical services 911,151 1,318,125 44.7 % 1,547,138 2,486,037 60.7 %
Improvements to concession assets (IFRIC-12) 960,983 968,994 0.8 % 1,890,226 1,959,448 3.7 %
*Total revenues* *4,895,738* *6,610,084* *35.0* *%* *8,533,734* *12,622,683* *47.9* *%*
*Operating costs*
Costs of services: *695,644* *900,467* *29.4* *%* *1,348,342* *1,653,991* *22.7* *%*
Employee costs 289,828 350,755 21.0 % 533,462 639,273 19.8 %
Maintenance 109,037 161,217 47.9 % 203,476 286,247 40.7 %
Safety, security & insurance 124,605 136,643 9.7 % 248,431 262,817 5.8 %
Utilities 95,591 119,569 25.1 % 172,764 215,650 24.8 %
Other operating expenses 76,583 132,283 72.7 % 190,209 250,004 31.4 %
Technical assistance fees 135,441 190,226 40.4 % 223,798 364,372 62.8 %
Concession taxes 303,817 473,457 55.8 % 517,657 873,223 68.7 %
Depreciation and amortization 510,380 563,114 10.3 % 1,013,125 1,127,647 11.3 %
Cost of improvements to concession assets (IFRIC-12) 960,983 968,994 0.8 % 1,890,226 1,959,448 3.7 %
Other (income) 2,712 (4,761 ) (275.6 %) (637 ) (18,473 ) 2798.0 %
*Total operating costs* *2,608,977* *3,091,497* *18.5* *%* *4,992,510* *5,960,209* *19.4* *%*
*Income from operations* *2,286,761* *3,518,587* *53.9* *%* *3,541,224* *6,662,474* *88.1* *%*
Financial Result (406,199 ) (288,116 ) (29.1 %) (485,505 ) (561,062 ) 15.6 %
*Income before income taxes * *1,880,561* *3,230,471* *71.8* *%* *3,055,722* *6,101,412* *99.7* *%*
Income taxes (456,589 ) (865,835 ) 89.6 % (594,170 ) (1,409,324 ) 137.2 %
*Net income * *1,423,972* *2,364,636* *66.1* *%* *2,461,552* *4,692,089* *90.6* *%*
Currency translation effect (146,953 ) (161,220 ) 9.7 % (85,224 ) (339,551 ) 298.4 %Cash flow hedges, net of income tax 23,233 45,635 96.4 % 240,027 137,387 (42.8 %)
Remeasurements of employee benefit – net income tax 735 103 (86.0 %) 1,837 205 88.8 %
*Comprehensive income * *1,300,987* *2,249,154* *72.9* *%* *2,618,192* *4,490,130* *71.5* *%*
Non-controlling interest 13,545 (51,631 ) (481.2 %) 650 (70,658 ) (10973.4 %)
*Comprehensive income attributable to controlling interest* *1,314,532* *2,197,523* *67.2* *%* *2,618,842* *4,419,472* *68.8* *%*
^The non-controlling interest corresponds to the 25.5% stake held in the Montego Bay airport by Vantage Airport Group Limited (“Vantage”).*Exhibit E: Consolidated stockholders’ equity **(in thousands of pesos)**:*
*Common Stock* *Legal Reseve* *Reserve for Share Repurchase* *Repurchased Shares* *Retained Earnings* *Other comprehensive income* *Total controlling interest* *Non-controlling interest* *Total Stockholders' Equity*
*Balance as of January 1, 2021* *6,185,082* *1,592,551* *3,283,374* *(1,733,374* *)* *11,908,891* *556,287* *21,792,811* *1,059,972* *22,852,783*
Reserve for share purchase - - - (1,211,074 ) - - *(1,211,074* *)* - *(1,211,074* *)*
Capital reduction (2,000,000 )
Repurchased share -
Comprehensive income:
Net income - - - - 2,463,307 - *2,463,307* (1,756 ) *2,461,551*
Foreign currency translation reserve - - - - - (86,330 ) *(86,330* *)* 1,106 *(85,224* *)*
Remeasurements of employee benefit – Net - - - - - 1,837 *1,837* - *1,837*
Reserve for cash flow hedges – Net of income tax - - - - - 240,027 *240,027* - *240,027*
*Balance as of June 30, 2021* *4,185,082* *1,592,551* *5,264,666* *(2,944,448* *)* *12,390,906* *711,821* *21,200,576* *1,059,323* *22,259,899*
*Balance as of January 1, 2022* *170,381* *1,592,551* *5,531,292* *(3,000,037* *)* *13,925,091* *1,069,102* *19,288,380* *1,140,220* *20,428,600*
Legal reserve cancellation - (1,558,475 ) - - 1,558,475 - *-* - -
Capitalization of retained earnings 8,027,155 - - - (8,027,155 ) - *-* - -
Dividends declared - - - - (7,351,490 ) - *(7,351,490* *)* - *(7,351,490* *)*
Cancellation repurchased shares - - (3,000,037 ) 3,000,037 - - *-* - *-*
Reserve for share purchase - - (31,782 ) - 31,782 - *-* - *-*
Dividends declared non-controlling interest - - - - - - *-* (93,751 ) *(93,751* *)*
Repurchased share - - - (1,075,703 ) - - *(1,075,703* *)* - *(1,075,703* *)*
Comprehensive income:
Net income - - - - 4,607,229 - *4,607,229* 84,857 *4,692,089*
Foreign currency translation reserve - - - - - (325,351 ) *(325,351* *)* (14,199 ) *(339,550* *)*
Remeasurements of employee benefit – Net - - - - - 205 *205* - *205*
Reserve for cash flow hedges – Net of income tax - - - - - 205 *205* - *205*
*Balance as of June 30, 2022* *8,197,536* *34,076* *2,499,473* *(1,075,703* *)* *4,743,934* *881,349* *15,280,663* *1,117,127* *16,397,790*
^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: *
*2Q21* *2Q22* *Change* *2020* *2021* *Change*
Total passengers 11,040 14,083 27.6 % 18,447 26,665 44.5 %
Total cargo volume (in WLUs) 689 677 (1.7 %) 1,357 1,304 (3.9 %)
Total WLUs 11,729 14,760 25.8 % 19,804 27,968 41.2 %
Aeronautical & non aeronautical services per passenger (pesos) 356.4 400.6 12.4 % 360.1 399.9 11.0 %
Aeronautical services per WLU (pesos) 257.8 292.9 13.6 % 257.3 292.4 13.6 %
Non aeronautical services per passenger (pesos) 82.5 93.6 13.4 % 83.9 93.2 11.2 %
Cost of services per WLU (pesos) 59.3 61.0 2.9 % 68.1 59.1 (13.1 %)
^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)**:**
*Airport* *2Q19* *2Q22* *Change* *6M19* *6M22* *Change*
Guadalajara 2,674.0 2,673.7 (0.0 %) 5,094.4 5,034.1 (1.2 %)
Tijuana * 1,533.7 2,001.0 30.5 % 2,894.9 3,821.9 32.0 %
Los Cabos 436.6 631.5 44.6 % 831.3 1,144.4 37.7 %
Puerto Vallarta 533.8 691.9 29.6 % 885.5 1,190.7 34.5 %
Montego Bay 2.4 0.0 (100.0 %) 4.2 0.0 (100.0 %)
Guanajuato 532.3 426.9 (19.8 %) 994.3 809.2 (18.6 %)
Hermosillo 475.0 481.3 1.3 % 859.9 864.5 0.5 %
Kingston 0.0 0.3 100.0 % 0.0 0.5 100.0 %
Mexicali 303.4 300.7 (0.9 %) 569.4 590.8 3.8 %
Morelia 115.7 165.9 43.4 % 225.9 313.5 38.8 %
La Paz 256.3 274.5 7.1 % 466.4 512.7 9.9 %
Aguascalientes 162.3 195.6 20.5 % 305.2 353.5 N/A
Los Mochis 103.3 107.9 4.4 % 187.1 204.0 9.0 %
Manzanillo 25.4 24.5 (3.4 %) 49.2 48.5 (1.5 %)
*Total* *7,154.1* *7,975.7* *11.5* *%* *13,367.7* *14,888.3* *11.4* *%*
^*CBX users are classified as international passengers.*International** Terminal Passengers – 14 airports **(in thousands)**:*
*Airport* *2Q19* *2Q22* *Change* *6M19* *6M22* *Change*
Guadalajara 1,088.6 1,097.7 0.8 % 2,076.7 2,067.6 (0.4 %)
Tijuana * 736.1 1,026.6 39.5 % 1,394.2 1,949.8 39.9 %
Los Cabos 914.4 1,184.6 29.5 % 1,970.6 2,309.4 17.2 %
Puerto Vallarta 762.3 873.6 14.6 % 2,019.3 1,934.6 (4.2 %)
Montego Bay 1,180.1 1,160.9 (1.6 %) 2,516.2 2,089.0 (17.0 %)
Guanajuato 173.8 181.7 4.5 % 345.1 357.2 3.5 %
Hermosillo 17.4 19.9 14.1 % 34.5 38.5 11.5 %
Kingston 0.0 361.9 N/A 0.0 630.1 N/A
Mexicali 1.9 1.7 (8.8 %) 3.3 2.9 (12.8 %)
Morelia 105.8 117.2 10.8 % 207.1 233.5 12.8 %
La Paz 3.1 6.3 106.7 % 6.6 13.8 107.7 %
Aguascalientes 54.8 57.9 5.5 % 99.3 105.0 N/A
Los Mochis 1.9 2.0 6.0 % 3.5 3.7 6.3 %
Manzanillo 15.2 15.5 2.5 % 52.3 41.2 (21.3 %)
*Total* *5,055.4* *6,107.5* *20.8* *%* *10,728.8* *11,776.2* *9.8* *%*
^*CBX users are classified as international passengers.*Total Terminal Passengers **– 14 airports* *(in thousands)**:*
*Airport* *2Q19* *2Q22* *Change* *6M19* *6M22* *Change*
Guadalajara 3,762.6 3,771.4 0.2 % 7,171.1 7,101.7 (1.0 %)
Tijuana * 2,269.8 3,027.6 33.4 % 4,289.1 5,771.7 34.6 %
Los Cabos 1,351.0 1,816.1 34.4 % 2,801.9 3,453.7 23.3 %
Puerto Vallarta 1,296.1 1,565.5 20.8 % 2,904.8 3,125.3 7.6 %
Montego Bay 1,182.5 1,160.9 (1.8 %) 2,520.4 2,089.0 (17.1 %)
Guanajuato 706.2 608.5 (13.8 %) 1,339.4 1,166.4 (12.9 %)
Hermosillo 492.4 501.2 1.8 % 894.5 903.0 1.0 %
Kingston 0.0 362.2 N/A 0.0 630.5 N/A
Mexicali 305.3 302.4 (0.9 %) 572.7 593.7 3.7 %
Morelia 221.5 283.2 27.8 % 433.0 547.1 26.4 %
La Paz 259.4 280.8 8.3 % 473.0 526.5 11.3 %
Aguascalientes 217.1 253.4 16.7 % 404.6 458.5 N/A
Los Mochis 105.2 109.9 4.5 % 190.6 207.7 9.0 %
Manzanillo 40.5 40.1 (1.2 %) 101.5 89.7 (11.7 %)
*Total* *12,209.4* *14,083.1* *15.3* *%* *24,096.5* *26,664.5* *10.7* *%*
^*CBX users are classified as international passengers.
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.
*
*
*CBX Users **(in thousands)**:*
*Airport* *2Q19* *2Q22* *Change* *6M19* *6M22* *Change*
Tijuana 723.6 1,017.2 40.6 % 1,370.9 1,934.6 41.1 %*Consolidated Results and Other Data compared with 2019 **(in thousands of pesos)**: *
*2Q19* *2Q22* *Change* *6M19* *6M22* *Change*
*Revenues*
Aeronautical services 2,577,773 4,322,965 67.7 % 5,209,098 8,177,197 57.0 %
Non-aeronautical services 957,275 1,318,125 37.7 % 1,858,600 2,486,037 33.8 %
Improvements to concession assets (IFRIC 12) 122,363 968,994 691.9 % 268,850 1,959,448 628.8 %
*Total revenues* *3,657,411* *6,610,084* *80.7* *%* *7,336,548* *12,622,683* *72.1* *%*
*Operating costs*
Costs of services: 705,304 900,467 27.7 % 1,300,943 1,653,991 27.1 %
Employee costs 228,793 350,755 53.3 % 423,116 639,273 51.1 %
Maintenance 148,362 161,217 8.7 % 260,802 286,247 9.8 %
Safety, security & insurance 102,312 136,643 33.6 % 204,443 262,817 28.6 %
Utilities 92,489 119,569 29.3 % 165,258 215,650 30.5 %
Other operating expenses 133,348 132,283 (0.8 %) 247,324 250,004 1.1 %
Technical assistance fees 113,644 190,226 67.4 % 229,218 364,372 59.0 %
Concession taxes 292,887 473,457 61.7 % 618,154 873,223 41.3 %
Depreciation and amortization 425,839 563,114 32.2 % 847,440 1,127,647 33.1 %
Cost of improvements to concession assets (IFRIC 12) 122,363 968,994 691.9 % 268,850 1,959,448 628.8 %
Other (income) (5,025 ) (4,761 ) (5.3 %) (8,933 ) (18,473 ) 106.8 %
*Total operating costs* *1,655,012* *3,091,497* *86.8* *%* *3,255,672* *5,960,209* *83.1* *%*
*Income from operations* *2,002,399* *3,518,587* *75.7* *%* *4,080,876* *6,662,474* *63.3* *%*
Financial Result (235,745 ) (288,116 ) 22.2 % (318,354 ) (561,062 ) 76.2 %
*Income before taxes* *1,766,654* *3,230,471* *82.9* *%* *3,762,522* *6,101,412* *62.2* *%*
Income taxes (503,081 ) (865,835 ) 72.1 % (1,101,400 ) (1,409,324 ) 28.0 %
*Net income * *1,263,573* *2,364,636* *87.1* *%* *2,661,122* *4,692,089* *76.3* *%*
Currency translation effect (45,788 ) (161,220 ) 252.1 % (139,739 ) (339,551 ) 143.0 %
Cash flow hedges, net of income tax 45,635 100.0 % 137,387 100.0 %
Remeasurements of employee benefit – net income tax (146 ) 103.0 (170.5 %) (293 ) 205 (170.0 %)
*Comprehensive income* *1,217,639* *2,249,154* *84.7* *%* *2,521,090* *4,490,130* *78.1* *%*
Non-controlling interest (19,763 ) (51,631 ) (161.3 %) (44,929 ) (70,658 ) (57.3 %)
*Comprehensive income attributable to controlling interest* *1,197,876* *2,197,523* *83.5* *%* *2,476,161* *4,419,472* *78.5* *%* *2Q19* *2Q22* *Change* *6M19* *6M22* *Change*
EBITDA 2,428,238 4,081,701 68.1 % 4,928,316 7,790,121 58.1 %
Comprehensive income 1,217,639 2,249,154 84.7 % 2,521,090 4,490,130 78.1 %
Comprehensive income per share (pesos) 2.1705 4.4230 103.8 % 4.4939 8.8300 96.5 %
Comprehensive income per ADS (US dollars) 1.1299 2.1985 94.6 % 2.3395 4.3891 87.6 %
Operating income margin 54.7 % 53.2 % (2.8 %) 55.6 % 52.8 % (5.1 %)
Operating income margin (excluding IFRIC 12) 56.6 % 62.4 % 10.1 % 57.7 % 62.5 % 8.2 %
EBITDA margin 66.4 % 61.7 % (7.0 %) 67.2 % 61.7 % (8.1 %)
EBITDA margin (excluding IFRIC 12) 68.8 % 72.4 % 5.2 % 69.7 % 73.1 % 4.8 %
Costs of services and improvements / total revenues 22.6 % 28.3 % 25.0 % 21.4 % 28.6 % 33.8 %
Cost of services / total revenues (excluding IFRIC 12) 20.0 % 16.0 % (20.0 %) 18.4 % 15.5 % (15.7 %)
[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.
[2] Revenues from improvements to concession assets are recognized in accordance with International Financial Reporting Interpretation Committee 12 “Service C