SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of February 2010
GRUPO AEROPORTUARIO DEL CENTRO NORTE, S.A.B. DE
(CENTRAL NORTH AIRPORT GROUP)
(Translation of Registrant’s Name Into
(Jurisdiction of incorporation or
Aeropuerto Internacional de Monterrey
Zona de Carga
Carretera Miguel Alemán, Km. 24 s/n
66600 Apodaca, Nuevo León, Mexico
(Address of principal executive offices)
(Indicate by check mark whether the registrant files or
will file annual reports under cover of Form 20-F or Form 40-F.)
(Indicate by check mark whether the registrant by
furnishing the information contained in this form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.)
(If “Yes” is marked, indicate below the file number
assigned to the registrant in connection with Rule 12g3-2(b):
Quarter 2009 Earnings Report
operator Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., known as OMA
(NASDAQ: OMAB; BMV: OMA), reported its unaudited, preliminary
results for the fourth quarter and full year 2009 today.1
In order to face
the challenges created by the economic environment during 2009, OMA implemented
a business strategy designed: first, to maintain aeronautical revenues; second,
to increase non-aeronautical revenues through improving the commercial offering
and passenger services in our airports and developing new lines of business; and
third, to control costs and expenses.
OMA generated solid
revenues in 4Q09, practically unchanged from 4Q08, despite the weak
macroeconomic environment and a significant decrease in passenger traffic. We
were able to mitigate the impact on EBITDA, while net income increased
principally because of an increase in comprehensive financial income and a
reversal in the provision for taxes.
traffic decreased 11.1% to 2.8 million. Domestic traffic decreased 11.1%
and international traffic decreased 10.6%. The suspension of Aviacsa
operations since July 6, 2009 continued to be one of the principal factors
affecting traffic during the
commercial operations opened in our airports, and the NH Mexico City
Airport Terminal 2 Hotel had its first full quarter of
revenues were Ps. 483 million, a reduction of 0.8%. Aeronautical revenues
per passenger increased 7.9%, and non-aeronautical revenues per passenger
increased 27.6%. Monterrey, OMA’s principal airport, contributed 45.0% of
Unless otherwise stated, all references are to fourth quarter 2009 (4Q09)
results, and all percentage changes are with respect to the same period of the
prior year. Full year 2009 changes are with respect to the full year 2008. The
exchange rate used for converting amounts in U.S. dollars was Ps. 13.0437 per
operating costs and general and administrative expenses increased 8.7% to
Ps. 225 million in 4Q09, as a result of the additional costs from
operating the hotel. OMA continues to implement cost control measures,
including reductions in consumption of electricity, materials and
supplies, and professional services. Excluding T2 Hotel costs, costs and
operating expenses decreased 2.4%.
income decreased 23.6% to Ps. 110 million as a result of the addition of
the T2 Hotel costs and higher depreciation and amortization; the operating
margin was 22.7%.
EBITDA decreased 8.4% to Ps. 221 million, equivalent to a 45.8%
net income was Ps. 163 million, an increase of 246.5% as compared to the
prior year period. The increase was principally due to comprehensive
financial income and the reversal of tax provisions taken earlier in the
year. Earnings per share were Ps. 0.41, or US$0.25 per American Depositary
expenditures were Ps. 227 million in 4Q09. Bank financing provided a
portion of the resources used for capital
During 4Q09, flight
operations and passenger traffic decreased at a slower rate than in the four
previous quarters. At the same time, air cargo volume showed a significant
recovery, increasing 13.5%.
The total number of
(takeoffs and landings) decreased 2.3% in 4Q09 to 85,524 operations;
International flight operations decreased 15.7% and domestic operations
decreased 0.1%. Seven airports had increases in operations, most importantly
Culiacán, Durango, Zacatecas, Mazatlán, and San Luis Potosí.
Total passenger traffic
decreased 11.1% (-347,108 terminal passengers) as compared to 4Q08. While the
year-over-year change continues to be negative, the reduction was less than in
the prior four quarters.
Durango, and Mazatlán airports recorded traffic increases, while the Monterrey,
Acapulco, Ciudad Juárez, Tampico, and Zihuatanejo airports had the largest
decreases (See Annex Table 1,
Passenger Traffic). VivaAerobus, US Airways, West Jet, and Grupo
Aeroméxico (Aeroméxico and Aeroméxico Connect) had increases in passengers.
Traffic reductions resulted principally from the economic crisis, the suspension
of Aviacsa (suspended since July 6, 2009), the departure from the markets of
Alma and Aladia, and reductions in traffic carried by Interjet and
Of total traffic,
84.5% was domestic traffic and 15.5% was international traffic; 97.2% was
commercial aviation and 2.8% was general aviation. Monterrey generated 45.1% of
total passenger traffic, Culiacán 9.9%, and Mazatlán 6.7%.
Domestic traffic volumes
decreased 11.1% in 4Q09. Three airports had increases in domestic traffic. In
Culiacán, growth came principally from increases in traffic on the Guadalajara,
Mexico City, and San José del Cabo routes; in Mazatlán, the Guadalajara and
Mexico City routes produced growth; and in Durango, general aviation and the
Mexico City route generated growth.
airports had reductions in domestic traffic; the airports most affected were
Monterrey, Acapulco, and Ciudad Juárez. The traffic reductions in Monterrey and
Acapulco were caused principally by fewer passengers on the Mexico City and
Toluca routes. In Ciudad Juárez, the reductions were generated on the Toluca and
four new domestic routes during the quarter and closed one route.
decreased 10.6% in 4Q09.
Three airports had
increases in international traffic. The most significant increase was in
Zacatecas, on the routes to Los Angeles and Chicago.
The other airports
had traffic reductions. The ones with the largest impacts were Monterrey and
Torreón, on the routes to Houston; and Acapulco, on the routes to Los Angeles
During the quarter,
the Zacatecas-Los Angeles route was opened, and the Monterrey-New York route was
Air Cargo volumes
increased 13.5% in 4Q09. The most significant growth occurred in San
Luis Potosí, our second largest air cargo hub after Monterrey, as a result of
increased domestic air freight operations.
and commercial operations
During 4Q09, we
continued to increase and improve our commercial offering and the passenger
services available in our airport terminals. Eleven new commercial businesses
opened during the quarter, and two were remodeled.
2 Hotel Operations
In its first four
months of operation, the occupancy rate of the NH Terminal 2 Hotel in Mexico
City has shown an increasing trend as a result of advertising and marketing
initiatives. The principal focus has been to negotiate with airlines for
providing accommodations for their crews and to market package deals for groups
to hold events at the hotel. The hotel had a December occupancy rate of 32.5%,
with an average room rate of Ps. 1,128 per night and revenue per available room
(RevPAR) of Ps. 366.5.
During 4Q09, OMA
was able to offset the effect of decreasing passenger traffic on revenues
principally through the growth of non-aeronautical revenues as a result of
improving and expanding passenger services and the commercial offering, and the
start of operations of the T2 hotel at the Mexico City airport.
Total revenues during 4Q09
were Ps. 482.7 million. The mix of revenues in 4Q09 was 77.8% aeronautical and
22.2% non-aeronautical. The Monterrey airport contributed 45.0% of total
revenues, Culiacán 8.7%, and Mazatlán 7.0%.
Aeronautical revenues in 4Q09
were Ps. 380.2 million, a 4.1% reduction. The reduction in revenue was less than
the reduction in traffic principally because of the increase in international
passenger charges. The airports that contributed most to aeronautical revenues
were Monterrey with 44.6%, Culiacán 9.4%, and Mazatlán 6.9%.
revenue per passenger increased 7.9%, to Ps. 136.1 in 4Q09 from Ps. 126.2 in
increased 13.5%, led by revenues from the T2 Hotel, parking, OMA Carga, and
Hotel revenues were
Ps. 11.8 million in 4Q09, of which 68.2% was room charges, 29.4% food and
beverages, and 2.4% other services.
The reduction in
passenger traffic had negative effects on restaurants, time-shares, and car
The airports that
contributed most to non-aeronautical revenues were Monterrey with 46.4%,
Mazatlán 7.7%, and Culiacán 6.0%; the NH Terminal 2 Hotel accounted for 11.5% of
revenue per passenger increased 27.6% to Ps. 36.7 in 4Q09 from Ps. 28.7 in 4Q08.
Non-aeronautical revenues per passenger, excluding the Hotel, increased 12.9% to
Ps. 32.4 in 4Q09 from Ps. 28.7 in 4Q08.
and operating expenses
measures to control costs in order to mitigate the impact on results of the
decrease in passenger traffic.
Cost of services and general and
administrative expenses increased a combined 8.7%, as a result of the
addition of costs of hotel operations of Ps. 24.6 million. Excluding T2 hotel
costs and expenses, cost of services and general and administrative expenses
decreased 2.4% as compared to 4Q08. The areas where there were the greatest
reductions were electricity, materials and supplies, and professional services,
Airport concession tax
increased 5.9%. This tax is 5% of gross revenues, and the increase reflects a
reduction in the provision for this tax made in 4Q08.
The technical assistance fee
decreased 18.8%. This fee is charged as the higher of US$3.0 million per year or
5% of Adjusted EBITDA before technical assistance.
results of the Hotel are not included in calculating the airport concession tax
or the technical assistance fee.
Depreciation and amortization
increased 13.8% during 4Q09, as a result of a higher level of
Total costs and operating
expenses increased 8.8% to Ps. 373.0 million, principally because of the
addition of the operating costs of the Hotel and higher depreciation and
income and Adjusted EBITDA
Operating income was Ps. 109.7
million in 4Q09, a decrease of 23.6% as compared to the prior year period. The
reduction reflected the decrease in revenues, the additional costs from
operating the hotel, and higher depreciation and amortization. The
operating margin in 4Q09
was 22.7%, 6.8 percentage points below the same period of 2008.
Adjusted EBITDA, which is
equivalent to UAFIDA in Mexico, decreased less than passenger traffic. Adjusted
EBITDA decreased 8.4% during 4Q09 to Ps. 221.3 million. The Adjusted EBITDA margin was
45.8%, 3.9 percentage points below the 4Q08 level.
income (expense), financing expense, and taxes
There was comprehensive financing income
of Ps. 1.3 million in 4Q09, as compared to
comprehensive financing expense in the prior year period. This resulted
principally from an exchange gain in the 2009 period, as compared to an exchange
loss the previous year. Net Interest income in 4Q09 also included the effect of
the capitalization of Ps. 17.5 million in interest expense for construction work
recorded in previous quarters of 2009.
Income tax was a credit of Ps.
46.1 million in 4Q09, as a result of a reversal of tax provisions accrued in
prior quarters of 2009, for both cash income taxes and cash minimum corporate
flat rate tax (IETU) payments.
In December 2009,
the Mexican government published the decree making effective changes in the
income tax law effective January 1, 2010. These changes include an increase in
the income tax rate from 28% to 30% for 2010-2012, decreasing to 29% in 2013,
and 28% in 2014 and thereafter. The law also changes the procedures for payment
of deferred taxes for groups that pay tax on a consolidated basis. OMA and its
subsidiaries will pay income tax at the 30% rate in 2010, which could have an
effect on OMA’s cash flow. OMA and its subsidiaries do not pay tax on a
consolidated basis, and accordingly the tax law changes as regards consolidation
will not have any effect on the Company.
Consolidated net income in
4Q09 was Ps. 162.6 million, an increase of 246.5% as compared to 4Q08. The
increase was principally because of taxes and comprehensive financing income, as
Net income of majority
interest was Ps. 163.6 million, an increase of 248.3% as compared to
Earnings per share and per ADS
increased as compared to 4Q08. Earnings per share were Ps. 0.41, and earnings
per ADS were US$0.25 per ADS. Each ADS represents eight Series B shares. (See Annex Table
During 4Q09 capital
expenditures were Ps. 227 million, including both Master Development Plan (MDP)
investments and strategic investments.
The most important
MDP investments during the fourth quarter were:
of phase 2 of the road network and parking area, installation of signage
inside Terminal B, construction of a waste water treatment plant,
installation of emergency generators for mechanical boarding
lighting for the satellite terminal building at the Monterrey
to the backup electric circuit for runway lights and visual aids at the
of concrete slabs in the operating areas of the Acapulco, Mazatlán,
Tampico, and Zihuatanejo airports;
and reconfiguration of the general aviation buildings at the Reynosa and
of a helicopter landing pad at the Tampico
Year 2009 Summary
In the full year
2009, OMA generated solid financial results despite the adverse environment for
the air transport industry. Total revenues were Ps. 1,896.3 million, Adjusted
EBITDA was Ps. 971.3 million, and net income reached Ps. 469.5
The number of
flight operations, total passenger traffic, and air cargo volumes decreased
15.6%, 18.1%, and 8.6%, respectively. The global financial crisis that began in
2008, Mexico’s deep economic recession in 2009, the H1N1 flu outbreak in April
and May, and the suspension of Aviacsa in July all had significant effects on
environment, OMA launched strategic initiatives. The principal actions were
steps to protect aeronautical revenues, including the termination of the special
incentive program for the Monterrey airport (in September 2008); to increase and
improve our commercial offering and the passenger services available in our
airport terminals and to start new commercial services, such as the NH Terminal
2 Hotel in Mexico City; and to enforce a policy of strict controls on costs and
expenses. With these actions, OMA was able to mitigate the impact of the
reduction in passenger traffic on revenues and Adjusted EBITDA, which decreased
only 4.6% and 7.9%, respectively. These actions also mitigated the
impact on Adjusted EBITDA margins, with a full year margin of 51.2%, as compared
to 53.0% in 2008.
Full year tax
provision decreased 67.4% as a result of a reduction in the provision for income
tax and IETU, with an effective tax rate of 14.2%. Earnings per share were Ps.
1.19, or US$ 0.73 per ADR.
During the full
year 2009, operating activities generated cash of Ps. 436.1 million. The
reduction in operating cash flow as compared to 2008 was principally the result
of reductions in accounts payable.
As of December 31,
2009, OMA’s total debt was Ps. 673.6 million in short- and long-term bank debt,
of which Ps. 542.8 million contributed to cash flow from financing in the year.
These resources were used principally to finance capital expenditures, which
included Ps. 385.8 million in investment in airport concessions, acquisition of
land, machinery and equipment for Ps. 103.6 million, and investment in the T2
hotel of Ps. 113.2 million.
Operation of the
share repurchase program generated Ps. 66.5 million in 2009.
Dividends paid were
Ps. 411.5 million; these include the third (January 15, 2009) and fourth (April
15, 2009) installments of the dividend declared for 2007, and the first (July
15, 2009) and second (October 15, 2009) installments of the dividend declared
OMA had a net
increase in cash of Ps. 10.3 million during 2009, with a balance of cash and
cash equivalents of Ps. 267.7 million as of December 30, 2009. (See Annex Table
OMA has no exposure
to any financial derivative instruments as of the date of this
Third quarterly payment of 2008
dividend: On January 15, 2010 the third quarterly installment of the
dividend declared by the Annual Shareholders’ Meeting on April 24, 2009 was
paid. The amount was Ps.0.25 per share.
Increase in long-term bank credit
facilities: On February 3, 2010, the size of the long-term bank credit
facility was increased to Ps. 700 million from Ps. 500 million. The terms and
conditions of the credit facility were unchanged. This credit is available to be
used for financing working capital and capital investments.
(NASDAQ: OMAB; BMV: OMA) will hold a conference call on February 25, 2010
at 10:00 am Eastern time, 9:00 am Mexico City time.
conference call is accessible by calling (877) 941-2322 toll-free from the
U.S. or +1 (480) 629-9715 from outside the U.S. The conference ID is
4230396. A taped replay will be available through March 4, 2010 at (800)
406-7325 toll free or +1 (303) 590-3030, using the same ID.
conference call will also be available by webcast at http://ir.oma.aero/events.cfm.
Notes and disclaimers
Adjusted EBITDA: OMA
defines Adjusted EBITDA as net income minus net comprehensive financing
income plus taxes and depreciation and amortization, and excludes other
income (expense). Adjusted EBITDA is equivalent to the concept UAFIDA in
Mexico. Adjusted EBITDA should not be considered as an alternative to net
income, as an indicator of our operating performance, or as an alternative
to cash flow as an indicator of liquidity. Our management believes that
Adjusted EBITDA provides a useful measure of our performance that is
widely used by investors and analysts to evaluate our performance and
compare it with other companies. EBITDA and Adjusted EBITDA are not
defined under U.S. GAAP, and may be calculated differently by different
are revenues from rate regulated services. These include revenue from
airport services, regulated leases, and access fees from fourth parties to
provide complementary and ground transportation services. Airport service
revenues include principally departing domestic and international
passenger charges (TUA), landing fees, aircraft parking charges, passenger
and carry-on baggage screening, and use of passenger jetways, among
others. Revenue from fourth party access fees to provide complementary
services include revenue sharing for ramp services, aircraft towing, water
loading and unloading, cabin cleaning, electricity supply, catering,
security, and aircraft maintenance, among others. Revenues from regulated
leases include principally rental to airlines of office space, hangars,
and check-in and ticket sales counters. Revenues from access charges for
providers of ground transportation services include charges for taxis and
Capex: includes investments in fixed assets (including investments
in land, machinery, and equipment) and improvements to concessioned
equivalent to 100 kg of cargo.
Earnings per share and
ADS: uses the weighted average of shares or ADS outstanding for
each period, excluding Treasury shares from the operation of the share
Exchange rate: Amounts
in U.S. dollars (US$) are converted at the December 31, 2009 exchange rate
of Ps. 13.0437/US$, as published in the Official Diary of the
Master Development Plan
(MDP): The investment plan agreed to with the government every five
years, under the terms of the concession agreement. These include capital
investments and maintenance for aeronautical activities, and exclude
commercial and other non-aeronautical investments. The investment horizon
is 15 years, of which the first five years are committed
Maximum Rate System: The
Ministry of Communications and Transportation (SCT) regulates all our
aeronautical revenues under a maximum rate system, which establishes the
maximum amount of revenues per workload unit (one terminal passenger or
100kg of cargo) that may be earned by each airport each year from all
regulated revenue sources. The concessionaire sets and registers the
specific prices for services subject to regulation, which may be adjusted
every six months as long as the combined revenue from regulated services
per workload unit at an airport does not exceed the maximum rate. The SCT
reviews compliance with maximum rates on an annual basis after the close
of each year.
Mexican Financial Reporting
Standards (MFRS): financial statements and other information are
presented in accordance with current MFRS and their Interpretations
(INIFs). These standards differ in certain significant respects from U.S.
are revenues that are not subject to rate regulation. These include
commercial services such as parking, advertising, car rentals, leasing of
commercial space, freight management and handling, and other lease income,
references to passenger traffic volumes are to terminal
Passengers that pay passenger
charges (TUA, Tarifa de
Uso de Aeropuerto): departing passengers,
excluding connecting passengers, diplomats, and
comparisons: unless stated otherwise, all comparisons of operating
or financial results are made with respect to the comparable prior year
period. Percentage changes for passenger traffic or financial items are
calculated based on actual numbers.
Revenue per available room
(RevPAR): an indicator widely used in the hotel industry, and
defined as total guest room revenue divided by the number of rooms
available, excluding rooms that are not available because of repairs or
refers only to those investments that are additional to those in the
Master Development Plan.
includes passengers on the three types of aviation (commercial,
charter, and general aviation), and excludes passengers in
financial statements are unaudited, preliminary statements for the periods
covered by the report.
Workload Unit: one
terminal passenger or one cargo
report may contain forward-looking information and statements. Forward-looking
statements are statements that are not historical facts. These statements are
only predictions based on our current expectations and projections about future
events. Forward-looking statements may be identified by the words “believe,”
“expect,” “anticipate,” “target,” or similar expressions. While OMA's management
believes that the expectations reflected in such forward-looking statements are
reasonable, investors are cautioned that forward-looking information and
statements are subject to various risks and uncertainties, many of which are
difficult to predict and are generally beyond the control of OMA, that could
cause actual results and developments to differ materially from those expressed
in, or implied or projected by, the forward-looking information and statements.
These risks and uncertainties include, but are not limited to, those discussed
in our most recent annual report filed on Form 20-F under the caption “Risk
Factors.” OMA undertakes no obligation to publicly update its forward-looking
statements, whether as a result of new information, future events, or
Aeroportuario del Centro Norte, S.A.B. de C.V., known as OMA, operates 13
international airports in nine states of central and northern Mexico. OMA’s
airports serve Monterrey, Mexico’s fourth largest metropolitan area, the tourist
destinations of Acapulco, Mazatlán, and Zihuatanejo, and nine other regional
centers and border cities. OMA also operates a hotel and commercial areas inside
Terminal 2 of the Mexico City airport. OMA employs over 960 persons in order to
offer passengers and clients, airport and commercial services in facilities that
comply with all applicable international safety, security standards, and ISO
9001:2000. OMA’s strategic shareholder members are ICA, Mexico’s largest
engineering, procurement, and construction company, and Aéroports de Paris
Management, subsidiary of Aéroports de Paris, the second largest European
airports operator. OMA is listed on the Mexican Stock Exchange (OMA) and on the
NASDAQ Global Select Market (OMAB). Please visit our website, www.oma.aero.
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V.
/s/ José Luis Guerrero
José Luis Guerrero Cortés
Chief Financial Officer
Date: February 24, 2010