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Section 1: 6-K (FORM 6-K)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20546

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of April 25, 2018

 

Commission File Number: 333-221916

 

 

 

Corporación América Airports S.A.

(Name of Registrant)

 

4, rue de la Grêve
L-1643, Luxembourg
Tel: +35226258274
Fax: +35226259776

(Address of Principal Executive Office)

 

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

 

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

 

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

 

 

 

 

 

SIGNATURES

 

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.

 

Date: April 25, 2018

 

  Corporación America Airports S.A.
     
  By: /s/ Andres Zenarruza
  Name: Andres Zenarruza
  Title: Legal Manager
     
  By: /s/ Raúl Guillermo Francos
  Name: Raúl Guillermo Francos
  Title: Chief Financial Officer

 

 

 

 

Exhibit Index

 

Exhibit No. Description
99.1 Press release dated April 24, 2018 - Corporación América Airports S.A. announces 4Q17 YoY growth of 7.6% in passenger traffic and 8.4% in revenues

 

 

(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

 

Exhibit 99.1

 

 

 

CORPORACION AMERICA AIRPORTS ANNOUNCES 4Q17 YOY GROWTH OF 7.6% IN PASSENGER TRAFFIC AND 8.4%
IN REVENUES

 

Successfully Completes Initial Public Offering

Passenger traffic up 13.0% YoY in Argentina supported by positive market dynamics

 

Luxembourg, April 24, 2018— Corporación América Airports S.A. (NYSE: CAAP), (“CAAP” or the “Company”) the largest private sector airport concession operator based on the number of airports under management and the tenth largest private sector airport operator worldwide based on passenger traffic, reported today its unaudited, consolidated results for the three- and twelve-month periods ended December 31, 2017. Financial results are expressed in millions of U.S. dollars and are prepared in accordance with International Financial Reporting Standards (IFRS).

 

Fourth Quarter 2017 Highlights

§Revenues up 8.4% YoY to $416.6 million mainly driven by Argentina and Armenia and further supported by Italy and Uruguay

 

§Positive dynamics across key operating metrics:

 

§Passenger traffic up 7.6% YoY to 19.5 million;
§Cargo volume increased 8.0% to 121.0 thousand tons; and
§Aircraft movements rose 1.0% to 214.0 thousand

 

§Consolidated Adjusted EBITDA reached $ 106.9 million, up 17.8% YoY

 

§The Argentine government granted Aeropuertos Argentina 2000 S.A.(“AA2000”) the concession to operate the El Palomar Airport located in the province of Buenos Aires

 

2017 Highlights

§Revenues up 15.3% YoY to $1.6 billion principally driven by Argentina and Armenia and further supported by all other concessions

 

§Positive dynamics across key operating metrics:

 

§Passenger traffic up 6.7% YoY to 76.6 million;
§Cargo volume increased 8.1% to 389.8 thousand; and
§Aircraft movements rose 1.8% to 851.3 thousand

 

§Consolidated Adjusted EBITDA reached US$ 461.6 million, up 8.1% YoY

 

§New flight routes in Argentina and Brazil

 

CEO Message

Commenting on the fiscal year 2017, Mr. Martin Eurnekian, CEO of Corporación América Airports, noted: “The year ended on a high note, posting strong traffic growth with more than 76 million passengers travelling through our airports worldwide, up almost 7% from 2016. This good performance was mainly supported by positive macro and industry dynamics across the regions in which we operate, along with our initiatives to add new flight routes and frequencies, which resulted in solid revenue and Adjusted EBITDA growth.”

 

“Our Argentine airports delivered record passenger traffic growth in the year, up 14% reaching 37 million passengers, reflecting new routes and additional flights to existing destinations along with the operation of new airlines, all of which contributed to increasing domestic connectivity and expanding international travel opportunities. We are also very pleased with the addition of our 37th airport in Argentina. In December 2017, the Argentine Government granted AA2000 the concession to operate El Palomar Airport. In Brazil, we are encouraged with the 4% growth in passenger traffic at the Brasilia Airport in 4Q17 contributing to annual traffic of 17 million passengers, signaling a recovery from the recession experienced in the country.”

 

"Our recent initial public offering was a strategic milestone for our Company and positions us among the few airport groups that have committed to the highest standards of corporate governance through a full listing in the U.S., and further enhances our financial position to support our growth initiatives.”

 

“Looking ahead, reflecting our confidence in the growth opportunities in our markets, particularly in Argentina, Brazil and Italy, we are focused on increasing capacity to capture additional expected passenger traffic and higher commercial revenues. In Argentina, we are working with the Government to develop the capex plan, mainly increasing capacity at Ezeiza, Aeroparque and El Palomar airports. Our goal is to address the anticipated growth in passenger traffic, resulting from the Government’s “Airplane Revolution Plan” that aims to attract new airlines including low cost carriers and to open new flight routes to serve the expected growth in demand. In Brazil, we are making progress with our plan to expand the commercial area at the Brasilia Airport, for which we expect to begin construction works in 2H18. Last December, we also received the environmental approval for the construction of a new runway at the Florence Airport, Italy, and expect to begin construction works in the second half of the year.”

 

Page 1 of 14

 

 

Operating & Financial Highlights

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

           
  4Q17 4Q16 % Var 2017 2016 % Var
Passenger Traffic (Million Passengers) 19.5 18.2 7.6% 76.6 71.8 6.7%
Revenue 416.6 384.5 8.4% 1,575.2 1,366.3 15.3%
Aeronautical Revenues 191.9 177.9 7.9% 767.0 673.5 13.9%
Non-Aeronautical Revenues 224.7 206.6 8.8% 808.1 692.9 16.6%
Revenue excluding construction services 338.9 318.8 6.3% 1,325.1 1,201.2 10.3%
Operating Income 89.7 65.3 37.4% 369.1 331.8 11.2%
Operating Margin 21.5% 17.0% 455 bps 23.4% 24.3% -85 bps
Net Income Attributable to Owners of the Parent -3.9 -7.1 -45.1% 63.5 33.8 87.9%
EPS (US$) -0.02 -0.04 -42.9% 0.43 0.29 48.3%
Adjusted EBITDA 106.9 90.8 17.8% 461.6 427.2 8.1%
Adjusted EBITDA Margin 25.7% 23.6% 205 bps 29.3% 31.3% -196 bps
Adjusted EBITDA Margin excluding Construction Services 31.4% 28.4% 307 bps 34.7% 35.4% -72 bps
Net Debt to LTM EBITDA 2.74x 2.09x 30.9% 2.74x 2.09x 30.9%

 

Operating Performance

 

Passenger Traffic

Total passenger traffic in 4Q17 increased 7.6% YoY reaching 19.5 million, mainly driven by growth of 13.0% in Argentina which added 1.1 million passengers. This increase was the result of the incorporation of new routes and flights along with the operation of new airlines and a favorable economic framework in the majority of CAAPs’ business segments. Brazil contributed with a 2.8% YoY increase in passenger traffic which added 0.1 million passengers during the period, reflecting the country’s economic recovery after the 2015-2016 recession. Traffic was also supported by YoY growth of 5.2% in Uruguay, 11.3% in Armenia and 8.1% in Peru. By contrast, traffic declined 7.0%, or 0.1 million, in Ecuador during the period as a result of Iberia Airlines discontinuing its operations at the Guayaquil Airport and TAME Airlines cancelling and reducing its international and domestic flights, respectively. Air Europa has absorbed Iberia´s international passenger traffic as of March 2018 and TAME´s international flights were already also offered by LATAM. In addition, the Guayaquil Airport has also recently added a new low cost carrier that operates flights to Florida, U.S.

 

Domestic passengers, which represented 55.3% of total traffic during 4Q17 rose 6.5% YoY driven mainly by growth of 10.7% in Argentina which added 0.6 million passengers. International passengers accounted for 32.8% of total traffic and increased 6.3% reflecting increases of 11.3%, 10.6% and 5.8% in Armenia, Argentina and Uruguay respectively. Growth was further backed by a 16.8% increase in transit passengers, 11.9% of total traffic mainly driven by in Argentina and Brazil.

 

Cargo Volume

Cargo volume in 4Q17 was up 8.0% YoY to 121.0 thousand tons, driven mainly by growth of 9.6% in Argentina which added 6.7 thousand tons and by Brazil and Ecuador which added more than 2 thousand tons each, reflecting the positive impact from improved macroeconomic conditions in the region.

 

Aircraft Movements

Total aircraft movements in 4Q17 rose 1.0% YoY to 214.0 thousand, mainly driven by growth of 7.0% in Argentina and 16.4% in Armenia, which added 7.3 and 0.8 thousand aircraft movements, respectively. Performance in Argentina was driven by the operation of new airlines, incorporation of new routes and frequencies along with improved economic environment as discussed above. The increase in Armenia was driven by higher passenger traffic from Russia following the agreement to ease entry requirements to Armenia for Russian citizens.

 

Tables with detailed passenger traffic, cargo volume and aircraft movement information for each airport can be found on page 11 of this report.

 

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Operational Statistics: Passenger Traffic, Cargo Volume and Aircraft Movements

  4Q17 4Q16 % Var 2017 2016 % Var
Domestic Passengers (in millions) 10.8 10.1 6.5% 41.3 37.9 8.9%
International Passengers (in millions) 6.4 6.0 6.3% 26.9 24.6 9.3%
Transit Passengers (in millions) 2.3 2.0 16.8% 8.4 9.3 -9.6%
Total Passengers (in millions) 19.5 18.2 7.6% 76.6 71.8 6.7%
Cargo Volume (in thousands of tons) 121.0 112.1 8.0% 389.8 360.5 8.1%
Total Aircraft Movements (in thousands) 214.0 211.8 1.0% 851.3 836.6 1.8%

 

Passenger Traffic Breakdown   Cargo       Aircraft Movements
Country 4Q17 4Q16 % Var.   4Q17 4Q16 % Var.   4Q17 4Q16 % Var.
  (in millions) (in millions)     (in thousands of tons) (in thousands of tons)     (in thousands) (in thousands)  
Argentina 9.8 8.7 13.0%   76.6 69.9 9.6%   111.9 104.5 7.0%
Italy 1.6 1.6 1.9%   2.9 3.1 -5.2%   16.2 16.3 -0.6%
Brazil 5.1 4.9 2.8%   15.1 12.8 18.0%   47.1 47.7 -1.4%
Uruguay 0.5 0.5 5.2%   8.2 8.1 1.1%   6.7 9.7 -31.2%
Ecuador (1) 1.0 1.1 -7.0%   11.8 9.3 26.3%   18.2 21.2 -14.5%
Armenia 0.6 0.6 11.3%   5.1 7.5 -31.4%   6.0 5.1 16.4%
Peru (2) 0.8 0.8 8.1%   1.3 1.3 -1.5%   8.1 7.2 12.2%
TOTAL 19.5 18.2 7.6%   121.0 112.1 8.0%   214.0 211.8 1.0%

 

1)CAAP owns 99.9% of ECOGAL which operates and maintains the Galapagos Airport, but due to the terms of the concession agreement, the ECOGAL’s results are accounted for by the equity method. However, 100% of ECOGAL’s passenger traffic and aircraft movements are included in this table.
2)CAAP owns 50.0% of AAP and accounts for its results by the equity method. However, 100% of AAP’s passenger traffic and aircraft movements are included in this table.

 

Review of Consolidated Results

Results for AAP Airports, the five airports CAAP operates in Peru, and ECOGAL which operates the Galapagos Airport in Ecuador, are accounted for under the equity method.

 

Revenues

Revenues for 4Q17 rose 8.4% YoY, to $416.6 million, mainly reflecting increases of 8.8%, or $21.8 million, in Argentina and 31.6%, or $6.6 million, in Armenia, both driven by passenger traffic growth, and further supported by revenue growth in Italy and Uruguay reflecting higher passenger traffic growth in both countries. Italy benefitted from the appreciation of the Euro against the US dollar, along with higher local currency revenues. By contrast, while revenues were negatively impacted by the devaluation of the Real against the US dollar in Brazil, in local currency revenues in the country benefited from the recovery in passenger traffic resulting from the improved economic environment. In Ecuador, revenues fell 2.2% reflecting lower passenger traffic.

 

Excluding construction services, revenues would have risen 6.3% YoY to $338.9 million.

 

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Revenues by Segment (in US$ million)

Country 4Q17 4Q16 % Var. 2017 2016 % Var.
Argentina 268.9 247.2 8.8% 998.6 840.9 18.8%
     Italy 37.9 33.9 11.9% 154.5 141.3 9.3%
Brazil 32.7 36.6 -10.6% 128.8 127.0 1.4%
Uruguay 26.0 23.9 8.7% 110.1 97.8 12.6%
Ecuador (1) 20.8 21.3 -2.2% 85.3 85.3 0.0%
Armenia 27.4 20.9 31.6% 94.5 73.2 29.1%
Unallocated 2.8 0.7 270.5% 3.4 0.8 319.5%
Total consolidated revenue (2) 416.6 384.5 8.4% 1575.2 1366.3 15.3%
1)Only includes Guayaquil Airport.
2)Excluding IFRIC12, 4Q17 revenue increased 7.0% YoY in Argentina, 9.2% in Italy, 10.2% in Uruguay and 20.3% in Armenia. In 2017, ex-IFRIC12, revenue increased 11.7% in Argentina, 5.5% in Italy, 13.1% in Uruguay and 25.9% in Armenia.

 

Revenue Breakdown (in US$ million)

  4Q17 4Q16 % Var. 2017 2016 % Var.
Aeronautical Revenue 191.9 177.9 7.9% 767.0 673.5 13.9%
Non-aeronautical Revenue 224.7 206.6 8.8% 808.1 692.9 16.6%
Commercial revenue 145.8 138.5 5.2% 555.5 522.2 6.4%
Construction service revenue (1) 77.8 65.7 18.4% 250.1 165.1 51.5%
Other revenue 1.2 2.4 -50.4% 2.5 5.6 -55.4%
Total Consolidated Revenue 416.6 384.5 8.4% 1575.2 1366.3 15.3%
Total Revenue excluding IFRIC12 (2) 338.9 318.8 6.3% 1325.1 1201.2 10.3%
1Construction service revenue equals the construction or upgrade costs plus a reasonable margin.
2Excludes construction services revenues.

 

Aeronautical revenue, derived from the use of airport facilities by aircrafts and passengers, represented 46.1% of our total revenues, and was up 7.9% YoY to $191.9 million. Argentina and Italy were the main drivers of aeronautical revenue growth, contributing with $7.0 million and $2.8 million, respectively, resulting mainly from increases in passenger traffic of 13.0% and 1.9%, respectively, in the period.

 

Non-Aeronautical revenues rose 8.8% YoY to $224.7 million, mainly reflecting:

 

§A 5.2%, or $7.3 million, increase in Commercial Revenues reaching $145.8 million mainly as a result of growth of $6.0 million in Argentina due to higher passenger traffic and $2.5 million in Armenia reflecting a progressive increase of 10% in fuel prices during the period.
§An 18.4%, or $12.1 million, increase in Construction Services revenues resulting from higher capital expenditures during the period, particularly $69.9 million invested across airports in Argentina, particularly in Ezeiza, Aeroparque and Tucumán airports; and

 

Excluding construction services revenues, non-aeronautical revenues would have increased 4.3% YoY to $147.0 million.

 

Consolidated Operating Costs and Expenses

Consolidated Operating Costs and Expenses for 4Q17 increased 3.7% YoY to $335.7 million, mainly due to higher Construction service cost and SG&A in the quarter. Excluding Construction service costs, which per IFRIC 12 are reported under cost of services, consolidated operating costs and expenses would have remained relatively stable at $258.3 million.

 

Cost of Services rose 6.4%, or $16.8 million, during 4Q17 to $280.2 million, reflecting:

§An 18.5%, or $12.1 million, increase in construction service costs, principally reflecting higher capex in Argentina and Armenia;
§An 8.8%, or $4.3 million, increase in salaries principally reflecting the impact of inflation in Argentina;
§A 4.8%, or $1.8 million, increase in maintenance expenses also as a result of higher inflation in Argentina; and
§A one-time $2.8 million benefit in 4Q17 from an adjustment in the concession fee in our Brazilian airports resulting from an increase in the discount rate used to calculate this fee.

 

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Excluding Construction service costs, and the one-time benefit in 4Q17 as explained above, consolidated cost of services would have increased 3.8% YoY, or by $7.5 million, to $205.7 million.

 

Selling, General and Administrative expenses (“SG&A”) rose 28.7% YoY, or $12.1 million, to $54.1 million in 4Q17. Excluding a one-time item of $3.9 million charge in holding company expenses in 4Q17 in connection with IPO expenses, SG&A would have increased 19.4% YoY to $50.2 million in 4Q17. This increase in SG&A was mainly due to: i) a $3.1 million bad debt provision for trade receivables in 4Q17 in Argentina along with a $2.3 million bad debt provision recovery in Uruguay in 4Q16, and ii) a $2.5 million increase in cost of services and fees mainly reflecting route development initiatives, increased baggage handling costs and outsourced security service expenses in Italy.


In 4Q17, CAAP reported Other Expenses of $1.4 million compared to $18.4 million in the year-ago quarter. 4Q16 includes a one-time expense of $16.6 million in Brazil as a result of the write down of the value of the Natal Concession Agreement.

 

Excluding IFRIC12 and the one-time items reported in 4Q17 in SG&A and in 4Q16 in Other Expenses, as explained above, Consolidated Operating Costs and Expenses would have increased 6.3% YoY to $257.3 million in 4Q17 from $241.9 million in 4Q16.

 

Consolidated Operating Costs and Expenses (in US$ million)

  4Q17 4Q16 % Var. 2017 2016 % Var.
Cost of Services 280.2 263.4 6.4% 1030.0 859.1 19.9%
Salaries and social security contributions 53.5 49.2 8.8% 210.8 184.6 14.2%
Concession fees 47.0 48.1 -2.3% 191.9 176.5 8.7%
Construction service cost 77.3 65.3 18.5% 248.6 163.7 51.9%
Maintenance expenses 39.5 37.7 4.8% 145.8 126.9 14.9%
Amortization and depreciation 25.2 25.0 0.9% 100.7 89.5 12.5%
Other 37.6 38.1 -1.5% 132.2 117.7 12.3%
Cost of Services Excluding Construction Costs 202.8 198.1 2.4% 781.4 695.4 12.4%
Selling, general and administrative expenses 54.1 42.1 28.7% 194.2 170.9 13.6%
Other expenses 1.4 18.4 -92.6% 4.8 21.5 -77.7%
Total Costs and Expenses 335.7 323.8 3.7% 1229.0 1051.5 16.9%
Total Costs and Expenses Excluding Construction Service Costs 258.3 258.5 -0.1% 980.4 887.8 10.4%

 

Adjusted EBITDA from Continuing Operations

Adjusted EBITDA for 4Q17 increased 17.8% YoY to $106.9 million, with Adjusted EBITDA margin expanding by 205 bps to 25.7%, from 23.6% in 4Q16. Excluding Construction service revenue, Adjusted EBITDA margin would have increased 307 bps to 31.4%, from 28.4% in 4Q16.

 

Adjusted EBITDA in 4Q17 was impacted by the following one-time items:

 

§$9.4 million provision for uncollected loans in connection with the termination of the Chinchero – Cusco International Airport concession in Peru reported under the “Share of Loss in Associates” line item;

 

§$3.9 million in initial public offering expenses reported under “SG&A”;

 

§$3.1 million gain from the reversal of an impairment loss reported under the “Reversal of Previous Impairment/Impairment Loss” line item;

 

§$2.8 million benefit from an adjustment in the concession fee in our Brazilian airports resulting from an increase in the discount rate used to calculate this fee under the “Cost of Services” line item

 

During 4Q16, the Company reported a one-time expense of $16.6 million in Brazil as a result of the write down of the value of the Natal concession.

 

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Excluding the one-time items in 4Q17 and 4Q16, as explained above, and excluding Construction service revenues and costs, Adjusted EBITDA would have increased 6.3%, or $6.8 million, to $113.8 million. Adjusted EBITDA margin ex-IFRIC and excluding one-time items would have remained relatively stable at 33.6% in 4Q17.

 

The 6.3% YoY increase in Adjusted EBITDA excluding one-time items and Construction service revenues and costs was principally driven by Argentina as a result of the 13.0% increase in passenger traffic in the period, further supported by Italy and Armenia.

 

Adjusted EBITDA Reconciliation to Income from Continuing Operations (in US$ million)

 

  4Q17 4Q16 % Var 2017 2016 % Var
Income from Continuing Operations -5.7 -11.2 -49.1% 66.9 38.7 72.9%
Financial Income -20.0 -11.3 77.6% -62.6 -37.5 66.9%
Financial Loss 98.3 69.0 42.4% 302.0 273.0 10.6%
Income Tax Expense 7.1 17.7 -60.0% 46.9 56.4 -16.8%
Amortization and Depreciation 27.2 26.5 2.5% 108.3 96.7 12.0%
Adjusted EBITDA 106.9 90.8 17.8% 461.6 427.2 8.1%
Adjusted EBITDA Margin 25.7% 23.6% 205 bps 29.3% 31.3% -196 bps
Adjusted EBITDA Margin excluding Construction Services 31.4% 28.4% 307 bps 34.7% 35.4% -72 bps

 

Financial Income and Loss from Continuing Operations

CAAP reported a Net financial loss of $78.3 million in 4Q17 compared to $57.7 million in the year-ago quarter. While financial income was up 77.6% to $20.0 million mainly reflecting the investment of the proceeds of the $400 million international bond issued by AA2000 on February 2017 as well as the funds in the AA2000 trust for investment commitments until the funds are applied to investments, this was more than offset by a higher financial loss. During 4Q17, CAAP reported a financial loss of $98.3 million, up 42.4% from $69.0 million in the year-ago quarter, primarily reflecting higher foreign exchange transaction expenses in Argentina, in connection with the Argentine peso depreciation. A higher liability for Brazilian concessions, reflecting the impact of inflation on the net present value of future concession fee payments in Brazil also contributed to a higher financial loss. By contrast, Interest expenses fell 38.1% YoY, or $14.3 million, reflecting the capitalization of the interest expenses corresponding to the share of the proceeds from the AA2000 bond issuance applied to capex.

 

Financial Income and Loss (in US$ million)

  4Q17 4Q16 % Var 2017 2016 % Var
Financial Income 20.0 11.3 77.6% 62.6 37.5 66.9%
Financial Loss 98.3 69.0 42.4% 302.0 273.0 10.6%
Interest Expenses 23.2 37.4 -38.1% 115.2 118.2 -2.5%
Foreign exchange transaction expenses 39.1 6.7 487.5% 82.3 44.9 83.3%
Changes in liability for Brazilian concessions 31.8 27.9 14.2% 98.1 107.4 -8.7%
Other expenses 4.2 -3.0 - 6.4 2.4 166.7%
Financial Loss, Net -78.3 -57.7 35.6% 239.4 235.5 1.7%

 

Income Tax Expense from Continuing Operations

Income Taxes for 4Q17 fell 60.0% YoY to $7.1 million, mainly caused by the reduction in the deferred income tax in Argentina, as a consequence of recent tax reform which reduced the income tax rate from 35% to 30% in 2018 and 2019, and to 25% thereafter.

 

Income/Loss from Continuing Operations and Net Income Attributable to Owners of the Parent

During 4Q17, CAAP reported a $5.7 million Net Loss from Continuing Operations, compared to an $11.2 million loss in 4Q16. The improvement resulted from higher operating income along with lower income tax expenses in 4Q17, partially offset by an increase in financial expenses, along with a $10.0 million share of loss in associates in 4Q17, of which $9.4 million resulted from a provision for uncollected loans in connection with the termination of the Chinchero – Cusco International Airport concession in Peru.

 

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Excluding the one-time items in 4Q17 and 4Q16 as discussed above in “Adjusted EBITDA from Continuing Operations” section, the Company would have reported Income from Continuing Operations of $1.7 million in 4Q17 compared to $4.7 million in 4Q16.

 

During 4Q17, the Company reported a Net Income Attributable to Owners of the Parent of -$3.6 million and a loss per common share of $0.02, compared with a Net Income Attributable to Owners of the Parent of -$7.2 million in 4Q16 equivalent to a loss per common share of $0.04 for the same period last year.

 

Consolidated Financial Position

As of December 31, 2017, CAAP had cash and cash equivalents of $221.6 million, a 4.0% increase from $213.0 million at December 31, 2016. Total Debt at the end of the quarter increased to $1,486.4 million, from $1,107.2 million in December 31, 2016, principally reflecting the issuance of the AA2000 notes for $400 million in February 2017 and loans for a total of $116.8 million assumed in Brazil to take advantage of the benefit from anticipating a portion of the 2018 concession fee under the Brasilia and Natal Airports. A total of $754.9 million, or 52.1% of total debt is denominated in U.S. dollars, while 36.6% is denominated in Reais, 11.2% in Euros and 0.1% in Argentine pesos.

 

The Net Debt to LTM EBITDA ratio stood at 2.74x at the end of 4Q17, compared with Net Debt to LTM EBITDA of 2.09x as of December 31, 2016.

 

Consolidated Debt Indicators (in US$ million)

  As of December 31, 2017 As of December 31, 2016
Leverage    
Total Debt / LTM Adjusted EBITDA (Times)1                                   3.22x                                   2.59x
Total Net Debt / LTM Adjusted EBITDA (Times) 2                                   2.74x                                   2.09x
Total Debt                              1,486.4                              1,107.2
Short-Term Debt                                 372.8                                 141.6
Long-Term Debt                              1,113.7                                 965.7
Cash & Cash Equivalents                                 221.6                                 213.0
Total Net Debt3                              1,264.8                                 894.3

1The Total Debt to EBITDA Ratio is calculated as CAAP’s interest-bearing liabilities divided by its EBITDA.
2The Total Net Debt to EBITDA Ratio is calculated as CAAP’s interest-bearing liabilities minus Cash & Cash Equivalents, divided by its EBITDA.
3The Total Net Debt is calculated as Total Debt minus Cash & Cash Equivalents.

 

CAPEX

During 2017, capital expenditures rose to $279.6 million, a 43.8% increase from $194.4 million reported in 2016. In 4Q17, CAAP made capital expenditures totaling $89.9 million, a 22.6% increase compared to $73.4 million in 4Q16.

 

The most significant investments in 4Q17 include:

 

§$69.9 million invested in Argentina, primarily for the remodeling of Hall B and the improvement works on the runway at Ezeiza Airport, the construction of new terminal buildings at Comodoro Rivadavia and Jujuy Airports and the extension of the runway at Tucumán Airport;
§$4.4 million invested in Brazil, of which $3.9 million was spent in the Brasilia Airport, primarily for improvement works on the runway and the remaining $0.5 million were spent in the Natal airport, mainly for runway improvements; and
§$7.6 million invested in Italy, primarily on terminal reconfigurations for higher capacity and Master plan projects in the Florence Airport and security investments in the Pisa Airport.

 

Key events for the quarter

 

CAAP is Awarded a New Airport in Argentina

On December 27, 2017, AA2000 was awarded the concession for the operation of the El Palomar Airport, which was brought under the AA2000 Concession Agreement pursuant to Decree 1107/2017. This is the 34th airport under the AA2000 Concession Agreement, and the 37th airport operated by CAAP in Argentina, that was added to serve low-cost carriers and increase capacity in the Buenos Aires area.

 

Page 7 of 14

 

 

Environmental Approval Obtained for the Florence Airport

On December 28 2017, the Ministry of Environment, after conducting an environmental impact assessment (Valutazione di Impatto Ambientale), approved the master plan for the Florence Airport. The urban planning assessment procedure is currently underway.

 

Final Approval of the Master Plan for Pisa Airport

On October 2017, the Italian Airport Regulator (Ente Nazionale per L’Aviazione Civile) approved the Company’s Master Plan for the Pisa Airport which contemplates adding 20,000 m2 of terminal space to capture higher demand.

 

Subsequent Events

 

Corporación América Airports Completes Initial Public Offering

On February 1, 2018, the Company’s ordinary shares began trading on the New York Stock Exchange in the United States. A total of 28,571,429 shares were sold in the offering, including a secondary tranche of 16,666,667 shares and a primary tranche of 11,904,762 shares generating total net proceeds to the Company of approximately $185.5 million. The initial public offering price was $17 per share.

 

Corporación América Airports Purchases Additional 4.568% Stake in Toscana Aeroporti S.p.A.

On February 20, 2018, CAAP announced that Corporación America Italia S.p.A. (“CAI”), a wholly-owned subsidiary, entered into an agreement with Fondazione Pisa to purchase an additional 4.568% of the share capital of Toscana Aeroporti S.p.A., for a purchase price of €15.80 per share, equal to a total purchase price of €13,433,713. As a result of the acquisition, CAI now holds 55.698% of Toscana Aeroporti S.p.A.’s share capital.

 

Corporación América Airports Approves Contributions in Subsidiaries and Concludes Brazilian Refinancing Transactions

In March 2018, the Company’s subsidiaries in Brazil concluded the negotiations with BNDES and extended the interest-only period and the final maturity under the existing loan. In addition, CAAP obtained a new financing (from BNDES) to Inframérica Concessionária do Aeroporto de Brasilia S.A. (“ICAB”) in an amount equal to R$300 million under the same terms of the existing financing. Furthermore, CAAP has subscribed and paid for new issuance of shares by Inframérica Participacões S.A. (that in turn has subscribed and paid for new issuance of shares by ICAB) and Inframerica Concessionária do Aeroporto de São Gonçalo do Amarante S.A. in an amount of R$148.3 million, or $46 million, and R$270 million, or $82.9 million, respectively. (Infraero has also subscribed and paid for new issuance of shares by ICAB, pro-rata to its stake i.e. 49% or R$ 142.1 million). A substantial portion of the foregoing proceeds were used to repay then existing indebtedness of these subsidiaries.

 

4Q17 EARNINGS CONFERENCE CALL

When: 10:00 a.m. Eastern time, April 25, 2018
   
Who: Mr. Martin Eurnekian, Chief Executive Officer
   
  Mr. Raul Francos, Chief Financial Officer
   
  Ms. Gimena Albanesi, Head of Investor Relations
   
Dial-in: 1-888-317-6016 (U.S. domestic); 1-412-317-6016 (international)
   
Webcast: https://services.choruscall.com/links/caap180418.html
   
Replay: Participants can access the replay through May 02, 2018 by dialing:
   
  1-877-344-7529 (U.S. domestic) and 1-412-317-0088 (international). Replay ID: 10118246.

 

Use of Non-IFRS Financial Measures

This announcement includes certain references to Adjusted EBITDA, Adjusted Segment EBITDA and Free Cash Flow:

 

Adjusted EBITDA is defined as income from continuing operations before financial income, financial loss, income tax expense, depreciation and amortization. Adjusted EBITDA margin refers to Adjusted EBITDA as defined above divided by revenue.

 

Adjusted EBITDA Margin Excluding IFRIC excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets and is calculated by dividing Adjusted EBITDA, excluding construction service revenues and costs, by total revenues less construction services revenues.

 

Adjusted EBITDA is not a measure recognized under IFRS. Accordingly, readers are cautioned not to place undue reliance on this information and should note that these measures as calculated by the Company, may differ materially from similarly titled measures reported by other companies.

 

Page 8 of 14

 

 

Definitions and Concepts

Commercial Revenues: CAAP derives commercial revenue principally from fees resulting from warehouse usage (which includes cargo storage, stowage and warehouse services and related international cargo services), services and retail stores, duty free shops, car parking facilities, catering, hangar services, food and beverage services, retail stores, including royalties collected from retailers’ revenue, and rent of space, advertising, fuel, airport counters, VIP lounges and fees collected from other miscellaneous sources, such as telecommunications, car rentals and passenger services, as shown on the table below.

 

Construction Services Revenues and Costs: Investments related to improvements and upgrades to be performed in connection with concession agreements are treated under the intangible asset model established by IFRIC 12. As a result, all expenditures associated with investments required by the concession agreements are treated as revenue generating activities given that they ultimately provide future benefits, and subsequent improvements and upgrades made to the concession are recognized as intangible assets based on the principles of IFRIC 12. The revenue and expense are recognized as profit or loss when the expenditures are performed. The cost for such additions and improvements to concession assets is based on actual costs incurred by CAAP in the execution of the additions or improvements, considering the investment requirements in the concession agreements. Through bidding processes, the Company contracts third parties to carry out such construction or improvement services. The amount of revenues for these services is equal to the amount of costs incurred plus a reasonable margin, which is estimated at an average of 3.0% to 5.0%.

 

About Corporación América Airports

Corporación América Airports acquires, develops and operates airport concessions. The Company is the largest private airport operator in the world based on the number of airports and the tenth largest based on passenger traffic. Currently, the Company operates 52 airports in 7 countries across Latin America and Europe (Argentina, Brazil, Uruguay, Peru, Ecuador, Armenia and Italy). In 2017, it served 76.6 million passengers. The Company is listed on the New York Stock Exchange where it trades under the ticker “CAAP”. For more information, visit http://investors.corporacionamericaairports.com

 

Forward Looking Statements

Statements relating to our future plans, projections, events or prospects are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “believes,” “continue,” “could,” “potential,” “remain,” “will,” “would” or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements, including, but not limited to: delays or unexpected casualties related to construction under our investment plan and master plans, our ability to generate or obtain the requisite capital to fully develop and operate our airports, general economic, political, demographic and business conditions in the geographic markets we serve, decreases in passenger traffic, changes in the fees we may charge under our concession agreements, inflation, depreciation and devaluation of the AR$, EUR, BRL, UYU, AMD or the PEN against the U.S. dollar, the early termination, revocation or failure to renew or extend any of our concession agreements, the right of the Argentine Government to buy out the AA2000 Concession Agreement, changes in our investment commitments or our ability to meet our obligations thereunder, existing and future governmental regulations, natural disaster-related losses which may not be fully insurable, terrorism in the international markets we serve, epidemics, pandemics and other public health crises and changes in interest rates or foreign exchange rates. The Company encourages you to review the ‘Cautionary Statement’ and the ‘Risk Factor’ sections of our Registration Statement on Form F-1 filed with the SEC for additional information concerning factors that could cause those differences.

 

Investor Relations Contact

Gimena Albanesi

Head of Investor Relations

Email: gimena.albanesi@caairports.com
Phone: +5411 4852-6411

 

Page 9 of 14

 

 

-- Operational & Financial Tables Follow --

 

Operating Statistics by Segment: Traffic, Cargo and Aircraft Movement

  4Q17 4Q16 % Var. 2017 2016 % Var.
Argentina            
Domestic Passengers (in millions) 6.0 5.4 10.7% 22.4 19.2 16.7%
International Passengers (in millions) 3.5 3.1 10.6% 13.6 12.2 11.5%
Transit passengers (in millions) 0.4 0.1 160.3% 1.2 1.2 0.0%
Total passengers (in millions) 9.8 8.7 13.0% 37.3 32.6 14.4%
Cargo volume (in thousands of tons) 76.6 69.9 9.6% 232.0 210.9 10.0%
Aircraft movements (in thousands) 111.9 104.5 7.0% 425.9 393.1 8.3%
Italy            
Domestic Passengers (in millions) 0.5 0.4 9.4% 1.8 1.8 0.0%
International Passengers (in millions) 1.2 1.2 -0.9% 6.1 5.7 7.0%
Transit passengers (in millions) 0.0 0.0 - 0.0 0.0 -
Total passengers (in millions) 1.6 1.6 1.9% 7.9 7.5 5.3%
Cargo volume (in thousands of tons) 2.9 3.1 -5.2% 10.8 10.5 2.9%
Aircraft movements (in thousands) 16.2 16.3 -0.6% 77.4 76.2 1.6%
Brazil            
Domestic Passengers (in millions) 3.0 3.0 0.1% 11.7 11.6 0.9%
International Passengers (in millions) 0.1 0.1 1.8% 0.5 0.7 -28.6%
Transit passengers (in millions) 2.0 1.8 7.1% 7.1 8.0 -11.3%
Total passengers (in millions) 5.1 4.9 2.8% 19.4 20.4 -4.9%
Cargo volume (in thousands of tons) 15.1 12.8 18.0% 54.5 48.7 11.9%
Aircraft movements (in thousands) 47.1 47.7 -1.4% 185.2 198.8 -6.8%
Uruguay            
Domestic Passengers (in millions) 0.0 0.0 - 0.0 0.0 -
International Passengers (in millions) 0.5 0.5 5.8% 2.3 2.0 15.0%
Transit passengers (in millions) 0.0 0.0 - 0.0 0.0 -
Total passengers (in millions) 0.5 0.5 5.2% 2.3 2.1 9.5%
Cargo volume (in thousands of tons) 8.2 8.1 1.1% 28.2 29.0 -2.8%
Aircraft movements (in thousands) 6.7 9.7 -31.2% 33.7 32.6 3.4%
Ecuador(1)            
Domestic Passengers (in millions) 0.5 0.6 -4.0% 2.2 2.3 -4.3%
International Passengers (in millions) 0.4 0.5 -8.5% 1.9 1.8 5.6%
Transit passengers (in millions) 0.0 0.0 - 0.1 0.1 0.0%
Total passengers (in millions) 1.0 1.1 -7.0% 4.1 4.2 -2.4%
Cargo volume (in thousands of tons) 11.8 9.3 26.3% 37.1 39.3 -5.6%
Aircraft movements (in thousands) 18.2 21.2 -14.5% 78.2 87.6 -10.7%
Armenia            
Domestic Passengers (in millions) 0.0 0.0 - 0.0 0.0 -
International Passengers (in millions) 0.6 0.6 11.3% 2.6 2.1 23.8%
Transit passengers (in millions) 0.0 0.0 - 0.0 0.0 -
Total passengers (in millions) 0.6 0.6 11.3% 2.6 2.1 23.8%
Cargo volume (in thousands of tons) 5.1 7.5 -31.4% 22.2 17.1 29.8%
Aircraft movements (in thousands) 6.0 5.1 16.4% 22.0 18.7 17.6%
Peru(2)            
Domestic Passengers (in millions) 0.8 0.8 8.1% 3.1 3.0 3.3%
International Passengers (in millions) 0.0 0.0 - 0.0 0.0 -
Transit passengers (in millions) 0.0 0.0 - 0.0 0.0 -
Total passengers (in millions) 0.8 0.8 8.1% 3.1 3.0 3.3%
Cargo volume (in thousands of tons) 1.3 1.3 -1.5% 5.0 5.0 0.0%
Aircraft movements (in thousands) 8.1 7.2 12.2% 29.0 29.6 -2.0%

(1)ECOGAL’s operational data included in this table, although its results of operations are not consolidated.
(2)AAP’s operational data included in this table, although its results of operations are not consolidated.

 

Page 10 of 14

 

 

Operating Statistics by Airport: Traffic, Cargo and Movement

 

  Domestic Passenger Traffic International Passenger Traffic Transit Passengers (1) Total Passenger Traffic Cargo volume (in tons) Aircraft movements
  4Q17 4Q16 % Var. 4Q17 4Q16 % Var. 4Q17 4Q16 % Var. 4Q17 4Q16 % Var. 4Q17 4Q16 % Var. 4Q17 4Q16 % Var.
Argentina                                    
Aeroparque 2,676.1 2,567.5 4% 798.8 633.0 26% 220.3 - - 3,695.1 3,200.5 15% 584.6 441.6 32% 34,768 33,537 4%
Bariloche 292.4 279.4 5% 0.2 0.0 345% 8.4 6.9 22% 301.1 286.4 5% 86.0 61.2 41% 2,856 2,763 3%
Catamarca 17.3 16.3 6% - - - 4.0 3.2 23% 21.3 19.7 9% 51.2 46.3 11% 638 549 16%
C. Rivadavia 170.2 156.7 9% - - - 0.3 1.9 -85% 170.5 158.6 7% 193.6 162.5 19% 2,515 2,134 18%
Córdoba 516.5 427.3 21% 230.7 179.8 28% 25.7 20.7 24% 772.9 627.8 23% 442.1 380.0 16% 7,656 6,690 14%
Esquel 14.9 12.0 24% - - - 0.0 0.1 -83% 15.0 12.1 23% - - - 258 228 13%
Ezeiza 204.2 177.1 15% 2,247.3 2,252.3 0% 53.1 51.3 4% 2,504.6 2,480.7 1% 70,703.1 62,344.5 13% 17,399 17,008 2%
Formosa 26.6 25.9 3% - - - 0.0 - - 26.6 25.9 3% 36.0 31.1 16% 522 526 -1%
General Pico 1.0 0.9 7% - - - - - - 1.0 0.9 5% - - - 1,288 666 93%
Iguazú 282.0 279.5 1% 0.2 0.1 20% 0.2 0.2 14% 282.3 279.9 1% - - - 2,585 2,626 -2%
Jujuy 72.6 61.1 19% 0.0 0.2 -89% 0.9 1.4 -35% 73.5 62.6 17% 28.0 29.0 -3% 973 1,075 -9%
La Rioja 18.7 18.2 3% - - - 3.6 3.1 16% 22.2 21.3 5% 57.0 44.7 28% 535 577 -7%
Malargüe 0.0 0.1 -73% - - - - 0.0 -100% 0.1 0.0 370% - - - 54 42 29%
Mar del Plata 77.6 50.0 55% 0.2 0.1 197% 2.5 0.4 486% 80.2 50.5 59% 26.4 21.4 23% 2,059 1,591 29%
Mendoza 319.1 72.1 342% 127.0 20.4 523% 4.5 6.6 -32% 450.6 99.0 355% 413.0 90.4 357% 4,933 1,147 330%
Parana 38.4 12.4 208% 0.0 0.0 218% 0.2 - - 38.7 12.5 209% - - - 1,078 767 41%
Posadas 57.6 49.4 17% 0.1 0.1 80% 0.4 0.2 127% 58.1 49.6 17% 99.9 84.2 19% 847 841 1%
Pto Madryn 26.5 15.9 67% - - - 0.1 0.2 -52% 26.6 16.1 65% - - - 240 207 16%
Reconquista 1.0 0.7 37% - - - 0.0 - - 1.1 0.8 38% - - - 532 909 -41%
Resistencia 90.0 58.8 53% - 0.1 -100% 0.3 0.2 70% 90.3 59.1 53% 111.9 81.1 38% 1,183 1,063 11%
Río Cuarto 17.5 10.0 76% - - - 0.1 0.7 -86% 17.7 10.5 68% 5.1 0.3 1600% 462 400 16%
Río Gallegos 66.8 66.8 0% 0.1 - - 1.4 1.6 -13% 68.3 68.5 0% 160.2 120.8 33% 1,048 1,230 -15%
Río Grande 39.4 38.5 3% 0.1 0.0 50% 0.0 0.0 13% 39.4 38.4 3% 74.3 91.1 -18% 739 1,021 -28%
Salta 276.6 255.2 8% 17.0 14.4 18% 4.7 8.9 -47% 298.4 278.4 7% 363.2 274.3 32% 2,970 3,401 -13%
San Fernando 9.1 7.8 16% 5.6 4.6 22% - - - 14.7 12.4 19% - - - 11,597 9,974 16%
San Juan 60.8 160.0 -62% 8.8 25.4 -65% 0.1 8.6 -99% 69.7 194.0 -64% - 278.0 -100% 747 1,811 -59%
San Luis 23.8 36.8 -35% - - - - - - 23.8 36.8 -35% - 41.0 -100% 456 647 -30%
San Rafael 13.4 20.0 -33% - - - - 0.1 -100% 13.4 20.0 -33% - - - 1,162 1,299 -11%
Santa Rosa 13.7 15.1 -9% - - - 0.2 0.1 189% 13.9 15.1 -8% - 2.9 -100% 950 1,063 -11%
Santiago del Estero 25.2 24.6 2% - - - 0.0 0.0 -29% 25.3 24.7 2% 61.9 45.6 36% 437 510 -14%
Tucumán 186.6 179.3 4% 18.8 0.1 16230% 2.3 0.2 1250% 207.7 179.5 16% 2,645.0 4,792.7 -45% 2,122 2,223 -5%
Viedma 10.7 8.8 22% - - - 1.0 2.0 -51% 11.8 10.8 9% - - - 253 248 2%
Villa Mercedes 0.4 0.3 48% - - - - 0.1 -100% 0.4 0.2 67% - - - 241 717 -66%
Termas de Río Hondo 5.8 2.3 152% - 0.0 -100% - - - 5.8 2.2 159% 2.6 0.7 271% 148 57 160%
Bahia Blanca 108.3 86.8 25% - - - 7.7 0.1 8045% 116.1 86.9 34% 116.5 98.8 18% 1,698 1,204 41%
Neuquén 228.7 215.2 6% 8.4 0.2 4354% 8.6 16.3 -47% 245.8 231.7 6% 342.0 370.0 -8% 3,917 3,766 4%
Total Argentina 5,990.2 5,409.0 11% 3,463.2 3,130.7 11% 350.6 134.7 160% 9,804.0 8,674.5 13% 76,603.6 69,934.2 10% 111,866 104,517 7%
Italy                                    
Pisa 350.6 329.7 6% 693.4 706.1 -2% 2.3 0.5 399% 1,046.3 1,036.3 1% 2,890.0 3,061.0 -6% 8,480 8,315 2%
Florence 105.1 86.6 21% 485.0 483.0 0% 0.2 - - 590.2 569.5 4% 54.0 43.0 26% 7,700 7,955 -3%
Total Italy 455.7 416.3 9% 1,178.4 1,189.0 -1% 2.5 0.5 442% 1,636.5 1,605.8 2% 2,944.0 3,104.0 -5% 16,180 16,270 -1%
Brazil                                    
Brasilia 2,392.7 2,363.0 1% 125.1 115.4 8% 1,967.5 1,836.6 7% 4,485.1 4,315.0 4% 11,789.0 9,557.0 23% 42,370 42,710 -1%
Natal 578.5 605.5 -4% 19.5 26.4 -26% - - - 597.9 631.9 -5% 3,267.0 3,254.0 0% 4,686 5,035 -7%
Total Brazil 2,971.1 2,968.4 0% 144.5 141.8 2% 1,967.5 1,836.6 7% 5,083.1 4,946.9 3% 15,056.0 12,811.0 18% 47,056 47,745 -1%
Uruguay                                    
Carrasco 0.3 0.1 312% 526.9 496.6 6% 1.3 3.5 -63% 528.6 500.1 6% 8,164.0 8,074.0 1% 6,235 8,204 -24%
Punta del Este 0.3 1.2 -77% 13.6 14.0 -3% -1.3 -1.1 15% 12.5 14.1 -12% - - - 421 1,468 -71%
Total Uruguay 0.6 1.3 -54% 540.4 510.6 6% 0.0 2.4 -99% 541.0 514.2 5% 8,164.0 8,074.0 1% 6,656 9,672 -31%
Ecuador                                    
Guayaquil 426.2 457.6 -7% 445.6 486.7 -8% 13.3 24.4 -46% 885.0 968.7 -9% 11,996.0 8,119.0 48% 16,673 19,858 -16%
Galapagos 120.8 112.3 8% - - - - - - 120.8 112.3 8% -211.0 1,209.0 -117% 1,484 1,375 8%
Total Ecuador 547.0 570.0 -4% 445.6 486.7 -8% 13.3 24.4 -46% 1,005.9 1,081.0 -7% 11,785.0 9,328.0 26% 18,157 21,233 -14%
Armenia                                    
Zvartnots - - - 595.3 562.6 6% - - - 595.3 562.6 6% 5,144.0 7,496.3 -31% 5,710 5,089 12%
Shirak - - - 36.8 5.3 590% - - - 36.8 5.3 590% 1.0 0.2 400% 279 54 417%
Total Armenia - - - 632.2 568.0 11% - - - 632.2 568.0 11% 5,145.0 7,496.5 -31% 5,989 5,143 16%
Peru                                    
Arequipa 473.2 426.9 11% - 0.0 -100% - - - 473.2 426.9 11% 628.7 636.5 -1% 3,899 3,577 9%
Juliaca 111.5 115.6 -4% - - - - - - 111.5 115.6 -4% 257.6 253.9 1% 966 1,002 -4%
Puerto Maldonado 76.6 72.4 6% - - - - - - 76.6 72.4 6% 203.6 217.3 -6% 940 857 10%
Tacna 112.7 104.0 8% - -0.0 -100% - - - 112.7 104.0 8% 218.5 224.4 -3% 1,196 988 21%
Ayacucho 60.3 52.7 14% - - - - - - 60.3 52.7 14% 7.1 3.3 113% 1,097 793 38%
Total Peru 834.2 771.5 8% - -0.0 -100% - - - 834.2 771.5 8% 1,315.5 1,335.5 -1% 8,098 7,217 12%
                                     
Total CAAP 10,798.9 10,136.4 7% 6,404.2 6,026.8 6% 2,333.9 1,998.5 17% 19,536.8 18,161.8 8% 121,013.1 112,083.2 8% 214,002 211,797 1%

 

Page 11 of 14

 

 

Income Statement (in US$ thousands)

  4Q17 4Q16 % Var. 2017 2016 % Var.
Continuing operations          ​
Revenue  416,619 384,461 8.4% 1,575,153 1,366,336 15.3%
Cost of services  -280,164 -263,391 6.4% -1,029,983 -859,074 19.9%
Gross profit 136,455 121,070 12.7% 545,170 507,262 7.5%
Selling, general and administrative expenses  -54,127 -42,050 28.7% -194,201 -170,852 13.7%
Reversal of previous Impairment/(Impairment Loss) 3,065 -16,638 - 3,065 -16,638 -
Other operating income  5,690 4,591 23.9% 19,953 16,944 17.8%
Other operating expense  -1,361 -1,719 -20.8% -4,838 -4,903 -1.3%
Operating income 89,722 65,254 37.5% 369,149 331,813 11.3%
Share of loss in associates  -10,020 -945 960.3% -15,841 -1,306 1112.9%
Income before financial results and income tax 79,702 64,309 23.9% 353,308 330,507 6.9%
Financial income  19,994 11,261 77.6% 62,555 37,521 66.7%
Financial loss  -98,280 -68,993 42.4% -302,047 -272,951 10.7%
Income before income tax expense  1,416 6,577 -78.5% 113,816 95,077 19.7%
Income tax expense  -7,092 -17,731 -60.0% -46,925 -56,359 -16.7%
Income from continuing operations -5,676 -11,154 - 66,891 38,718 -
Discontinued operations  ​  ​    ​  ​  
Loss for discontinued operations  - -816 - - -9,478 -
Net income -5,676 -11,970 -52.6% 66,891 29,240 128.8%
Attributable to:            
Owners of the parent  -3,599 -7,187 -49.9% 63,491 33,759 88.1%
Non-controlling interest  -2,077 -4,783 -56.6% 3,400 -4,519 -

 

Page 12 of 14

 

 

Balance Sheet (in US$ thousands)

  Dec 31, 2017    Dec 31, 2016  
ASSETS  ​    ​  ​
Non-current assets  ​    ​  ​
Intangible assets, net  2,818,354 74.1% 2,825,187 77.9%
Property, plant and equipment, net  74,483 2.0% 65,984 1.8%
Investments in associates  13,435 0.4% 10,927 0.3%
Other financial assets 2500 0.1% 721 0.0%
Deferred tax assets  135,327 3.6% 99,258 2.7%
Other receivables  173,393 4.6% 118,074 3.3%
Trade receivables  4244 0.1%  - -
Total Non-current assets 3,221,736 84.8% 3,120,151 86.0%
Current assets  ​    ​  
Inventories  8,564 0.2% 7,664 0.2%
Other financial assets  39,796 1.0% 33,936 0.9%
Other receivables  183,062 4.8% 137,207 3.8%
Current tax assets  4621 0.1% 5,720 0.2%
Trade receivables  121,834 3.2% 109,610 3.0%
Cash and cash equivalents  221,601 5.8% 212,988 5.9%
Total Current assets 579,478 15.2% 507,125 14.0%
Total assets  3,801,214 100.0% 3,627,276 100.0%
EQUITY  ​    ​  
Share capital  1,500,000 39.5% 20 0.0%
Free distributable reserve  385,055 10.1% 1,907,328 52.6%
Currency translation adjustment  -217,300 -5.7% -188,721 -5.2%
Legal reserves  2 0.0% 2 0.0%
Other reserves  -1,344,008 -35.4% -1,344,022 -37.1%
Retained earnings  138,034 3.6% 74,543 2.1%
Total attributable to owners of the parent  461,783 12.1% 449,150 12.4%
Non-controlling interests  335,359 8.8% 354,174 9.8%
Total equity  797,142 21.0% 803,324 22.1%
LIABILITIES  ​    ​  
Non-current liabilities  ​    ​  
Borrowings  1,113,655 29.3% 965,672 26.6%
Deferred tax liabilities  148,301 3.9% 144,393 4.0%
Other liabilities  1,006,792 26.5% 1,049,448 28.9%
Trade payables  3,302 0.1% 1,663 0.0%
Total Non-current liabilities 2,272,050 59.8% 2,161,176 59.6%
Current liabilities  ​    ​  
Borrowings  372,790 9.8% 141,569 3.9%
Other liabilities  209,486 5.5% 347,307 9.6%
Current tax liabilities  21,934 0.6% 60,361 1.7%
Trade payables  127,812 3.4% 113,539 3.1%
Total Current liabilities 732,022 19.3% 662,776 18.3%
Total liabilities  3,004,072 79.0% 2,823,952 77.9%
Total equity and liabilities  3,801,214 100.0% 3,627,276 100.0%

 

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Statement of Cash Flows (in US$ thousands)

  Dec 31, 2017    Dec 31, 2016
Cash flows from operating activities  ​    ​
Income from continuing operations 66,891   38,718
Adjustments for:      
Amortization and depreciation 138,130   122,882
Deferred income tax -41,843   -40,763
Current income tax 88,768   97,122
Share of loss in associates 15,841   1,306
Reversal of previous impairment /(impairment loss) -3,065   16,638
Income/(Loss) on disposals of property, plant and equipment 3,210   21
Unpaid concession fees   44,159   40,548
Changes in liability for Brazil concessions 98,122   107,408
Interest expense 115,223   118,219
Other financial results, net -28,955   402
Loss on disposals of subsidiaries -   897
Net foreign exchange 59,221   26,383
Other accruals 7,033   -3,196
Acquisition of Intangible assets -255,488   -179,900
Income tax paid -105,716   -20,083
Changes in working capital -250,953   -153,830
Net cash used in/ (provided by) operating activities -49,422   172,772
Net cash used in discontinued operating activities -   -8,155
Cash flows from investing activities  
Acquisition of/(cash contribution in) associates  -   10
Acquisition of other financial assets -51,202   -2,401
Disposals of other financial assets  31,608   11,575
Purchase of Property, plant and equipment  -11,503   -10,391
Acquisition of Intangible assets  -1,664   -848
Net cash inflow on disposal of discontinued operations  -   10,381
Net cash inflow on disposal of subsidiaries/associated  -   6,988
Loans with related parties  -12,762   20,261
Proceeds from sale of Property, plant and Equipment  175   269
Others 186   -
Net cash provided by/(used in) investing activities -45,162   35,844
Net cash used in discontinued investing activities  -   -8,093
Cash flows from financing activities  
Proceeds from cash contributions  6,600   29,512
Refund of cash contributions  -28,893   -
Proceeds from borrowings  594,439   52,099
Release of restricted cash 30,873   -
Loans paid  -250,276   -142,693
Interest paid  -106,953   -48,564
Guarantee deposit -92,999   -
Dividend distribution  -23,836   -49,733
Net cash (used in)/provided by financing activities  128,955   -159,379
Net cash provided by discontinued financing activities  -   -
       
Increase/(Decrease) in cash and cash equivalents from continuing  operations  34,371   49,237
Decrease in cash and cash equivalents from discontinued operations  -   -16,248
       
Cash and cash equivalents  
At the beginning of the year 182,116   153,889
Exchange rate income or (loss) on cash and cash equivalents   5,114   -4,762
Increase in cash and cash equivalents from continuing operations 34,371   49,237
Decrease in cash and cash equivalents from discontinued operations -   -16,248
At the end of the year 221,601   182,116

 

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