Corporacion America Airports Announces 1Q21 Results


LUXEMBOURG–(BUSINESS WIRE)–Corporación América Airports S.A. (NYSE: CAAP), (“CAAP” or the “Company”) the largest private sector airport operator based on the number of airports under management reported today its unaudited, consolidated results for the three-month period ended March 31, 2021. Financial results are expressed in millions of U.S. dollars and are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (“IASB”).

Commencing 3Q18, the Company began reporting results of its Argentinean subsidiaries applying Hyperinflation Accounting, in accordance to IFRS rule IAS 29 (“IAS 29”), as detailed on Section “Hyperinflation Accounting in Argentina” on page 23.

First Quarter 2021 Highlights

  • Consolidated Revenues of $138.2 million, a decline of 54.4% YoY. Excluding the impact of IFRS rule IAS 29, revenues declined 54.2%, to $140.3 million, mainly reflecting decreases of $113.6 million in Aeronautical revenues, $34.8 million in Commercial revenues driven by the impact of the COVID-19 pandemic, as well as a $13.5 million decline in construction service revenue in Argentina, and to a lesser extent, Ecuador and Uruguay, reflecting lower capex in the period.
  • Key operating metrics declined YoY impacted by the pandemic, but improved sequentially:

    • Passenger traffic was 6.5 million, a 61.8% YoY decline, but increased 27.9% from 5.1 million in 4Q20
    • Cargo volume decreased 18.9% YoY to 67.9 thousand tons, compared to a 5.9% sequential decline from 72.1 thousand tons in 4Q20
    • Aircraft movements reached 98.4 thousand, a 44.9% YoY decline, but improved 14.7% from 85.8 thousand in 4Q20
  • Operating Loss was $26.6 million, compared to a $31.3 million Operating Gain in 1Q20, mainly reflecting the impact of the pandemic on revenues, partially offset by lower cost of services and SG&A.
  • Adjusted EBITDA on an “As Reported” basis was $6.3 million, a 92.3% decline from $80.9 million in 1Q20. Excluding one-time charges in Argentina in relation with professional fees for the settlement of claims in 1Q21, Adjusted EBITDA would have been $14.3 million on an “As reported” basis, or $14.2 million when excluding IAS29. When also excluding an impairment loss in 1Q20 in Brazil, Adjusted EBITDA would have declined 83.5% in the quarter from $86.1 million in 1Q20, while Adjusted EBITDA margin Ex-IFRIC12 declined to 12.4% from 33.0% in 1Q20.
  • On January 13, 2021, CAAP announced that under Resolution No. 4/2021 of the Official Gazette, the Organismo Regulador del Sistema Nacional de Aeropuertos (“ORSNA”) established an increase in the international passenger fee for travelers departing from AA2000 airports of US$6 to US$57, in line with the provisions of the Technical Conditions for the Extension which are part of the 10-year concession extension approved on December 17, 2020.
  • In February 2021, CAAP received a proposal from Aerolíneas Argentinas S.A. offering to pay outstanding amounts owed to its subsidiary AA2000 until March 31, 2020 (AR$120.6 million and US$36.5 million).
  • In February 2021, AA2000 renegotiated the principal payment under the syndicated bank loan maturing in February 2021 for a total amount of $13.3 million, and deferred said amount to be repaid under a new schedule between March 2022 and February 2023.

Subsequent Events

  • In April 2021, Puerta del Sur (“PDS”), CAAP’s Uruguayan subsidiary, obtained a $10.0 million facility with a local commercial bank.
  • In May 2021, AA2000 renegotiated a total of $40.0 million in principal payments under the syndicated bank loan, maturing in May, August and November 2021 for an amount of $13.3 million each, and deferred said amount to be repaid in May, August and November 2022.

CEO Message

Commenting on the results for the quarter Mr. Martín Eurnekian, CEO of Corporación América Airports, noted, “We are very proud of the way the Company has navigated the unprecedented crisis over the past year, showing an ability to be both prudent and agile. As we moved into a second wave of Covid-19 in Latin America during the first quarter, which resulted in travel restrictions and lower demand that negatively impacted passenger traffic in some of our countries of operations, we were better positioned to mitigate the effects of the crisis. Our sustained focus on cost controls and cash preservation allowed us to achieve positive Comparable Adjusted EBITDA of $14 million in 1Q21, excluding one-time fees, despite passenger traffic levels of nearly a third of pre-pandemic levels in the same quarter of 2019.”

“Since the onset of the pandemic, we have made significant progress in the successful execution of our Covid-19 Mitigation Strategic Plan and remain dedicated to continue the consistent execution of this plan. One of our key goals this year is to restore the value of our business by finalizing the re-equilibrium processes, following the successful 10-year concession extension in Argentina and full economic re-equilibrium for 2020 in Brazil. We also remain focused on preserving liquidity and strengthening our balance sheet, while keeping a lean structure across our operations and maintaining tight control on costs as the level of activity progressively increases.”

“In terms of passenger traffic dynamics, we are observing a pick-up in traffic in Brazil, Armenia and Ecuador, primarily driven by a faster pace in the roll out of the vaccination program and better sanitary conditions. Italy is also expected to benefit from the rollout of the vaccination campaign, warmer weather and lower restrictions during the European summer season. We also expect overall better trends as vaccination campaigns begin to pick-up in Argentina and travel restrictions are progressively lifted later in the year in both Uruguay and Argentina. Longer-term, we are convinced the desire to travel will resume and strong pent-up demand will contribute to drive sustained traffic growth. In closing, we are confident in the potential of our business and we continue working towards building a leaner and stronger company that will allow us to deliver profitable growth once demand returns.”

Operating & Financial Highlights

(In millions of U.S. dollars, unless otherwise noted)

 

1Q21 as

reported

 

1Q20 as

reported

% Var as

reported

 

IAS 29

1Q21

 

1Q21 ex

IAS 29

 

1Q20 ex

IAS 29

 

% Var ex

IAS 29

 

Passenger Traffic (Million Passengers) (1)(2)

6.5

 

17.1

 

-61.8

%

 

 

6.5

 

 

17.1

 

 

-61.8

%

Revenue

138.2

 

302.8

 

-54.4

%

-2.1

 

140.3

 

 

306.6

 

 

-54.2

%

Aeronautical Revenues

42.8

 

154.7

 

-72.3

%

0.0

 

42.8

 

 

156.4

 

 

-72.6

%

Non-Aeronautical Revenues

95.4

 

148.2

 

-35.6

%

-2.1

 

97.5

 

 

150.3

 

 

-35.1

%

Revenue excluding construction service

110.8

 

256.6

 

-56.8

%

0.1

 

110.7

 

 

259.2

 

 

-57.3

%

Operating Income / (Loss)

-26.6

 

31.3

 

-184.9

%

-9.2

 

-17.4

 

 

54.5

 

 

-131.9

%

Operating Margin

-19.2

%

10.3

%

-2,952 bps

 

 

-12.4

%

 

19.2

%

 

-3,159 bps

 

Net (Loss) / Income Attributable to Owners of the Parent

-44.1

 

-15.1

 

191.8

%

23.9

 

-67.9

 

 

-11.7

 

 

480.6

%

EPS (US$)

-0.28

 

-0.09

 

205.7

%

0.15

 

-0.42

 

 

-0.04

 

 

960.5

%

Adjusted EBITDA

6.3

 

80.9

 

-92.3

%

0.4

 

5.8

 

 

81.6

 

 

-92.8

%

Adjusted EBITDA Margin

4.5

%

26.7

%

-2,217 bps

<p class="bwcellpmargin…



Read More:Corporacion America Airports Announces 1Q21 Results