Toggle SGML Header (+)


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 May, 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.

 

 

 

 

 

 

UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2018 AND 2017

 

This report of foreign private issuer on Form 6-K (this “Form 6-K”) is being furnished by Corporación América Airports S.A. (“CAAP” or the “Company”) with the Securities and Exchange Commission (the “SEC”). The Company is furnishing this report on Form 6-K for the purpose of furnishing a copy of the Company’s unaudited condensed consolidated interim financial statements for the three month period ended March 31, 2018 and 2017 (the “Consolidated Financial Statements”) as Exhibit 99.1. The Consolidated Financial Statements are presented in U.S. Dollars and prepared in accordance with IAS 34, “Interim Financial Reporting.” These Consolidated Financial Statements, should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2017, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) of the International Accounting Standard Board (“IASB”) and the interpretations of the International Financial Reporting Interpretation Committee (“IFRIC”).

 

 

 

 

Exhibit Index

 

Exhibit No.   Description
     
99.1   CAAP Unaudited Condensed Consolidated Interim Financial Statements for the three month period ended march 31, 2018 and 2017.

 

 

 

 

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: May 24, 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

 

 

(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

 

Exhibit 99.1

 

Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017.

 

Corporación América Airports S.A.

 

CONDENSED CONSOLIDATED

INTERIM FINANCIAL STATEMENTS

 

For the three-month period ended March 31, 2018 and 2017

 

R.C.S. Luxembourg B 174.140

 

4, rue de la Grêve

L-1643, Luxembourg

 

 

 

 

Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF INCOME

 

      For the three-month period ended
March 31,
 
      2018   2017 
   Notes  Unaudited   Unaudited 
            
Continuing operations             
Revenue  4   390,884    353,654 
Cost of services  5   (241,102)   (219,528)
Gross profit      149,782    134,126 
Selling, general and administrative expenses  6   (44,033)   (43,531)
Other operating income  7   5,078    4,904 
Other operating expense      (1,231)   (335)
Operating income      109,596    95,164 
Share of income /(loss) in associates      130    (50)
Income before financial results and income tax      109,726    95,114 
Financial income  8   13,887    30,719 
Financial loss  8   (85,788)   (79,465)
Income before income tax expense      37,825    46,368 
Income tax expense  9   (11,518)   (11,615)
Income for the period      26,307    34,753 
Attributable to:             
Owners of the parent      26,495    32,457 
Non-controlling interest      (188)   2,296 
       26,307    34,753 
              
Earnings per share attributable to the owners of the parent             
Weigthed average number of ordinary shares (thousands)      155,260    148,118 
              
Basic and diluted earnings per share      0.17    0.22 

 

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements. These Condensed Consolidated Interim Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and notes for the year ended December 31, 2017.

 

 - 1 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME

 

   For the three-month period ended
March 31,
 
   2018   2017 
   Unaudited   Unaudited 
Income for the period   26,307    34,753 
           
Items that will not be reclassified subsequently to profit or loss:          
Remeasurement of defined benefit obligation   9    38 
           
Items that may be subsequently reclassified to profit or loss:          
Share of other comprehensive income from associates   115    42 
Currency translation adjustment   (24,257)   15,650 
Other comprehensive (loss)/ income for the period, net of income tax   (24,133)   15,730 
Total comprehensive income for the period   2,174    50,483 
Attributable to:          
Owners of the parent   5,872    41,922 
Non-controlling interest   (3,698)   8,561 
    2,174    50,483 

 

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements. These Condensed Consolidated Interim Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and notes for the year ended December 31, 2017.

 

 - 2 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

CONDENSED cONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

 

   Notes  At March 31, 2018
Unaudited
   At December 31, 2017
Audited
 
            
ASSETS             
Non-current assets             
Intangible assets, net  10   2,797,696    2,818,354 
Property, plant and equipment, net      75,244    74,483 
Investments in associates      13,678    13,435 
Other financial assets at amortized cost      -    2,500 
Deferred tax assets      141,633    135,327 
Other receivables      165,752    173,393 
Trade receivables      4,254    4,244 
       3,198,257    3,221,736 
Current assets             
Inventories      8,115    8,564 
Other financial assets at fair value through profit or loss      21,330    16,214 
Other financial assets at amortized cost      2,600    23,582 
Other receivables      61,954    183,062 
Current tax assets      5,690    4,621 
Trade receivables      124,478    121,834 
Cash and cash equivalents  11   275,750    221,601 
       499,917    579,478 
Total assets      3,698,174    3,801,214 
              
EQUITY  14          
Share capital      160,022    1,500,000 
Share premium      180,486    - 
Free distributable reserve      385,055    385,055 
Non-distributable reserve      1,351,883    - 
Currency translation adjustment      (237,928)   (217,300)
Legal reserves      2    2 
Other reserves      (1,346,661)   (1,344,008)
Retained earnings      166,885    138,034 
Total attributable to owners of the parent      659,744    461,783 
Non-controlling interests      353,390    335,359 
Total equity      1,013,134    797,142 
              
LIABILITIES             
Non-current liabilities             
Borrowings  12   1,146,241    1,113,655 
Deferred tax liabilities      147,574    148,301 
Other liabilities  13   1,020,700    1,006,792 
Trade payables      3,259    3,302 
       2,317,774    2,272,050 
Current liabilities             
Borrowings  12   78,971    372,790 
Other liabilities  13   156,993    209,486 
Current tax liabilities      26,951    21,934 
Trade payables      104,351    127,812 
       367,266    732,022 
Total liabilities      2,685,040    3,004,072 
Total equity and liabilities      3,698,174    3,801,214 

 

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements. These Condensed Consolidated Interim Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and notes for the year ended December 31, 2017.

 

 - 3 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

 

           Attributable to owners of the parent         
   Share
Capital
   Share
premium
   Free
Distributable
Reserves
   Non-
Distributable
Reserves
   Legal
Reserves
   Currency
Translation
Adjustment
   Other
Reserves
   Retained
Earnings  (1)
   Total   Non-
controlling
interests
   Total 
Balance at December 31, 2017   1,500,000    -    385,055    -    2    (217,300)   (1,344,008)   138,034    461,783    335,359    797,142 
Adjustment on adoption of IFRS 9 (net of tax) (Note 2.2 (a))   -    -    -    -    -    -    -    2,356    2,356    542    2,898 
Adjusted balance at January 1, 2018   1,500,000    -    385,055    -    2    (217,300)   (1,344,008)   140,390    464,139    335,901    800,040 
Shareholders contributions (Note 14)   -    -    -    -    -    -    -    -    -    43,703    43,703 
Income / (loss) for the period   -    -    -    -    -    -    -    26,495    26,495    (188)   26,307 
Reverse stock split (Note 14)   (1,351,883)   -    -    1,351,883    -    -    -    -    -    -    - 
Initial Public Offering (Note 14)   11,905    180,486    -    -    -    -    -    -    192,391    -    192,391 
Other comprehensive loss for the period   -    -    -    -    -    (20,628)   5    -    (20,623)   (3,510)   (24,133)
Changes of non-controlling interests   -    -    -    -    -    -    (2,658)   -    (2,658)   (22,516)   (25,174)
Balance at March 31, 2018   160,022    180,486    385,055    1,351,883    2    (237,928)   (1,346,661)   166,885    659,744    353,390    1,013,134 
                                                        
Balance at January 1, 2017   20    -    1,907,328    -    2    (188,721)   (1,344,022)   74,543    449,150    354,174    803,324 
Shareholders contributions (Note 14)   -    -    3,810    -    -    -    -    -    3,810    -    3,810 
Income for the period   -    -    -    -    -    -    -    32,457    32,457    2,296    34,753 
Other comprehensive income for the period   -    -    -    -    -    9,443    22    -    9,465    6,265    15,730 
Changes of non-controlling interests   -    -    -    -    -    -    -    -    -    (8,060)   (8,060)
Balance at March 31, 2017   20    -    1,911,138    -    2    (179,278)   (1,344,000)   107,000    494,882    354,675    849,557 

 

(1) Retained Earnings calculated according to Luxembourg Law are disclosed in Note 15.

 

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements. These Condensed Consolidated Interim Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and notes for the year ended December 31, 2017.

 

 - 4 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

 

      For the three-month period ended
March 31,
 
   Notes  2018
Unaudited
   2017
Unaudited
 
Cash flows from operating activities             
Income for the period      26,307    34,753 
Adjustments for:             
Amortization and depreciation      34,224    34,266 
Deferred income tax  9   (13,700)   (9,725)
Income tax accrued  9   25,218    21,340 
Share of income or loss in associates      (130)   50 
Loss on disposals of property, plant and equipment      -    3 
Unpaid concession fees      22,337    21,689 
Changes in liability for Brazil concessions      21,577    25,980 
Interest expense      25,925    42,101 
Other financial results, net      2,292    (18,891)
Net foreign exchange      22,425    (636)
Other accruals      3,689    1,923 
Acquisition of Intangible assets      (44,170)   (37,495)
Income tax paid      (14,242)   (3,244)
Changes in working capital  17   (82,401)   (85,836)
Net cash provided by operating activities      29,351    26,278 
              
Cash flows from investing activities             
Cash contribution in associates      (13)   - 
Additional acquisitions in subsidiaries  14   (16,513)   - 
Acquisition of other financial assets      (5,816)   (41)
Disposals of other financial assets      23,590    15,009 
Purchase of Property, plant and equipment      (1,749)   (1,217)
Acquisition of Intangible assets      (16)   (160)
Other      80    62 
Net cash (used in) / provided by investing activities      (437)   13,653 
              
Cash flows from financing activities             
Proceeds from cash contributions      43,703    3,810 
Proceeds from borrowings      173,680    395,211 
Initial Public Offering  14   195,601    - 
Initial Public Offering expenses paid  14   (4,253)   - 
Release of guarantee deposits      92,913    - 
Release of restricted cash      -    30,873 
Loans paid  12   (452,686)   (192,691)
Interest paid  12   (17,332)   (31,311)
Dividend distribution      (2,632)   (2,560)
Net cash provided by financing activities      28,994    203,332 
              
Increase in cash and cash equivalents      57,908    243,263 
              
Movements in cash and cash equivalents             
At the beginning of the period      221,601    182,116 
Exchange rate (loss)/ income on cash and cash equivalents      (3,760)   9,101 
Increase in cash and cash equivalents      57,908    243,263 
At the end of the period  11   275,749    434,480 

 

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements. These Condensed Consolidated Interim Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and notes for the year ended December 31, 2017.

 

 - 5 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

 

1 General information and company conversion
2 Basis of presentation and accounting policies
3 Segment information
4 Revenue
5 Cost of services
6 Selling, general and administrative expenses
7 Other operating income
8 Financial results, net
9 Income tax expense
10 Intangible assets, net
11 Cash and cash equivalents
12 Borrowings
13 Other liabilities
14 Equity
15 Contingencies, commitments and restrictions on the distribution of profits
16 Related party balances and transactions
17 Cash flow disclosures
18 Fair value measurement of financial instruments
19 Subsequent events

 

 - 6 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

1General information and corporate reorganization

 

General Information

 

Corporación América Airports S.A. (the “Company” or “CAAP”) is a holding company primarily engaged through its operating subsidiaries in the acquisition, development and operation of airport concessions. The Company and its operating subsidiaries are collectively referred to hereinafter as the “Group”.

 

The Company was formed as a private limited liability company under the laws of the Grand Duchy of Luxembourg on December 14, 2012. The Company is ultimately controlled by Southern Cone Foundation (“SCF”), a foundation, organized under the laws of the Principality of Liechtenstein. The address of its registered office is in Vaduz.

 

The Group currently has operations in Argentina, Brazil, Uruguay, Armenia, Italy, Ecuador and Perú.

 

A list of the principal Group’s subsidiaries is included in Note 2 of the Consolidated Financial Statements as of December 31, 2017.

 

Company conversion

 

The Company was converted on September 14, 2017, from a Luxembourg Limited Liability Company named A.C.I. Airports International S.à r.l. (“ACI”) into a Luxembourg Corporation and changed its name to Corporación América Airports S.A. (the “Conversion”). In conjunction with the Conversion, all of the Company’s outstanding equity interests were converted into one billion five hundred million (1,500,000,000) shares of common stock which are held by ACI Airports S.à r.l. (controlling shareholder). In connection with the Conversion, Corporación América Airports S.A. has continued to hold all assets of ACI and has assumed all of its liabilities and obligations.

 

The main adjustment of the Conversion principally gave effect to the recognition of the share capital of Corporación América Airports S.A. for a total nominal value of USD 1,500 million (USD 1 per share) and the elimination of the shares of A.C.I. Airports International S.à. r.l. for a total amount of USD 20 thousands and of the Free distributable reserves for a total amount of USD 1,499.9 million.

 

These condensed consolidated interim financial statements have been approved for issuance by the Company on May 22, 2018.

 

2Basis of presentation and accounting policies

 

The principal accounting policies applied in the preparation of these Condensed Consolidated Interim Financial Statements are consistent with the Consolidated Financial Statements ended at December 31, 2017. These policies have been consistently applied to all the years presented, unless otherwise stated.

 

 - 7 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

2Basis of presentation and accounting policies (Cont.)

 

2.1 Basis of presentation

 

These Condensed Consolidated Interim Financial Statements have been prepared in accordance with IAS 34, “Interim Financial Reporting”. The accounting policies used in the preparation of these Condensed Consolidated Interim Financial Statements are consistent with those used in the audited Consolidated Financial Statements for the year ended December 31, 2017, except for changes explained in Note 2.2. These Condensed Consolidated Interim Financial Statements should be read in conjunction with the audited Consolidated Financial Statements for the year ended December 31, 2017, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) of the International Accounting Standards Board (IASB) and the Interpretations of the International Financial Reporting Interpretations Committee (IFRIC).

 

Elimination of all material intercompany transactions and balances between the Company and the other companies and their respective subsidiaries have been made.

 

The preparation of Condensed Consolidated Interim Financial Statements in conformity with IFRS requires management to make certain accounting estimates and assumptions that might affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the reporting dates, and the reported amounts of revenues and expenses during the reporting years. Actual results may differ from these estimates.

 

In the preparation of these Condensed Consolidated Interim Financial Statements, the significant areas of judgment by management in the application of the Group’s accounting policies and the main areas of assumptions and estimates are consistently as those applied in the Consolidated Financial Statements for the year ended December 31, 2017.

 

Assets and liabilities are classified as current if settlement is expected within 12 months.

 

There were no changes in valuation techniques during the period, except for changes explained in Note 2.2, and there were no changes in risk management policies since the end of the year ended December 31, 2017.

 

2.2 Changes in the accounting polices

 

The group has applied the following standards and amendments for the first time for their quarter reporting period commencing 1 January 2018:

 

IFRS 9, “Financial Instruments”

 

The group has adopted IFRS 9 as issued in July 2014, which resulted in changes in accounting policies and adjustments to the amounts recognized in the Consolidated Financial Statements for the year ended 31 December 2017.

 

This standard replaces the previously issued versions and establishes new requirements for hedge accounting and a new model of impairment for financial assets, effective from January 1, 2018. The new impairment model requires the recognition of impairment provisions based on expected credit losses (ECL) rather than only incurred credit losses, as is the case under IAS 39.

 

The accounting policies were changed to comply with IFRS 9 as issued by the IASB in July 2014. IFRS 9 replaces the provisions of IAS 39 that relate to the recognition, classification and measurement of financial assets and financial liabilities; derecognition of financial instruments; impairment of financial assets and hedge accounting. IFRS 9 also significantly amends other standards dealing with financial instruments such as IFRS 7 Financial Instruments: Disclosures.

 

 - 8 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

2Basis of presentation and accounting policies (Cont.)

 

2.2 Changes in the accounting polices (Cont.)

 

As permitted by the transitional provisions of IFRS 9, the Group has elected not to restate comparative figures.

 

(a) Impact of adopting IFRS 9

 

The total impact on the Group’s retained earnings due to measurement of financial instruments as of January 1, 2018 is as follows:

 

   Retained Earnings   Non- controlling
interests
 
Opening balance - IAS 39   138,034    335,359 
Decrease in provision for trade receivables   3,142    723 
Decrease in deferred tax assets relating to impairment provisions   (786)   (181)
Adjustment to retained earnings from adoption of IFRS 9   2,356    542 
Opening balance – IFRS 9   140,390    335,901 

 

(b) Classification and measurement of financial instruments

 

On January 1, 2018, the Group’s management has assessed which business models apply to the financial assets held by the group at the date of initial application of IFRS 9 (January 1, 2018) and has classified its financial instruments into the appropriate IFRS 9 categories.

 

Reclassifications of financial instruments on adoption of IFRS 9

 

On the date of initial application, January 1, 2018, the financial instruments of the group were as follows, with any reclassifications noted:

 

   Measurement category  Carrying amount     
   Original (IAS 39)  New (IFRS 9)  Original   New   Difference 
Assets as per the statement of financial position                     
Other financial assets  AC*  AC*   26,082    26,082    - 
Other financial assets  FVPL**  FVPL**   16,214    16,214    - 
Other receivables  AC*  AC*   293,578    293,578    - 
Trade receivables  AC*  AC*   126,078    129,943    3,865 
Cash and cash equivalents  AC*  AC*   221,601    221,601    - 
Liabilities as per the statement of financial position                     
Borrowings  AC*  AC*   1,486,445    1,486,445    - 
Trade payables and other liabilities  AC*  AC*   1,198,562    1,198,562    - 

 

* AC = financial instruments measured at amortized cost

** FVPL = financial instruments measured at fair value through profit or loss

 

(c) IFRS 9 Financial Instruments – Accounting policies applied from January 1, 2018

 

From January 1, 2018, the Company classifies its financial assets in the following measurement categories:

 

(i)Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. Interest income from these financial assets is included in finance income using the effective interest rate method.

 

 - 9 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

2Basis of presentation and accounting policies (Cont.)

 

2.2 Changes in the accounting polices (Cont.)

 

(ii)Fair value through other comprehensive income (“FVOCI”): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized in profit or loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to profit or loss and recognized in other gains/(losses). Interest income from these financial assets is included in finance income using the effective interest rate method. Foreign exchange gains and losses are presented in other gains/(losses) and impairment expenses are presented as separate line item in the statement of profit or loss.

 

(iii)Fair value through profit or loss (“FVPL”): Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVPL. A gain or loss on a debt investment that is subsequently measured at FVPL is recognized in profit or loss and presented net within other gains/(losses) in the period in which it arises.

 

The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows.

 

IFRS 15, “Revenue from contracts with customers”

 

IFRS 15, ‘Revenue from contracts with customers’ deals with revenue recognition and establishes principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers.

 

Revenue is recognized when a customer obtains control of a good or service and thus has the ability to direct the use and obtain the benefits from the good or service. The standard replaces IAS 18 ‘Revenue’ and IAS 11 ‘Construction contracts’ and related interpretations. The Company´s management has determine that the adoption of this standard did not have a significant impact on the Company´s financial condition or results of operations.

 

Effective January 1, 2018, the Group adopted this standard using the modified retrospective adoption approach. There was no impact on the condensed consolidated interim financial statements and no cumulative effect adjustment was recognized.

 

There were no other changes on accounting policies and accounting methods. The standards that are mandatory effective on or after January 1, 2018 were applied by the group.

 

New and amended standards not yet adopted for CAAP.

 

Certain new accounting standards and interpretations have been published that are not mandatory for March 31, 2018 reporting periods and have not been early adopted by the group. The group’s assessment of the impact of these new standards and interpretations is set out below.

 

IFRS 16, “Leases”

In January 2016, the IASB issued IFRS 16, "Leases", which will result in almost all leases being recognized on the balance sheet, as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognized. IFRS 16 must be applied on annual periods beginning on or after January 1, 2019. The Company's management is currently assessing the potential impact that the application of this standard may have on the Company's financial condition or results of operations.

 

 - 10 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

2Basis of presentation and accounting policies (Cont.)

 

2.2 Changes in the accounting polices (Cont.)

 

New and amended standards not yet adopted for CAAP (Cont.)

 

Other standards and interpretations non-significant for the Company’s financial statements:

- Amendment to IFRS 2 - Classification and Measurement of Share-based Payment Transactions -Annual Improvements to IFRS 2014-2016 cycle.

- IFRIC 22 - Foreign Currency Transactions and Advance Consideration.

- IFRIC 23 - Uncertainty over Income Tax Treatments.

 

There are no other standards that are not yet effective and that would be expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.

 

3Segment information

 

For management purposes, the Company analyzes its business in a consistently manner as was included in Note 2.U of the Consolidated Financial Statements for the year ended December 31, 2017 and has the same segments to be reported as follows:

 

1. Argentina

2. Brazil

3. Uruguay

4. Armenia

5. Ecuador

6. Italy

7. Perú

 

The activities carried out by the Group are as follows:

 

Airports: It relates to the operation of airport concessions in the geographic areas mentioned above. Others: These are represented by the businesses that are not operation of airport concessions (for example: TCU S.A. and Aerocombustible S.A.)

 

All other segments - Assets and results of the subsidiaries that are holding companies are not analyzed by the CODM, therefore they are not separately included in the reports provided to the Board. The results of the operations of holding companies are included in the "unallocated" column. The column also includes head office and group services.

 

The elimination of any intersegment revenues and other significant intercompany operations are included in the “Intersegment Adjustments” column.

 

The performance of each segment is measured by its adjusted EBITDA, defined, with respect to each segment, as income before financial income, financial loss, income tax expense, depreciation and amortization for such segment. Adjusted EBITDA excludes certain items that are not considered part of Group´s core operating results; specifically, financial income, financial loss, income tax expense, depreciation and amortization are not allocated to Group´s reportable segments, except for the amortization of Brazil that is included in concession fees in cost of services, as it is related to the canon payed to Brazilian government for operating the airport concession in Brazil.

 

 - 11 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

3Segment information (Cont.)

 

   Argentina   Brazil   Uruguay   Armenia   Ecuador   Italy   Perú             
Period ended March 31, 2018 (Unaudited)  Airports   Others   Airports   Airports   Others   Airports   Airports   Airports   Airports   Intrasegment
Adjustments
   Unallocated   Total 
Revenue   248,276    16    32,049    32,154    4,466    21,677    21,526    31,708    -    (2,427)   1,439    390.884 
Cost of services   (144,834)   (32)   (28,325)   (13,531)   (3,269)   (12,865)   (12,173)   (24,818)   -    2,427    (3,682)   (241,102)
Gross profit   103,442    (16)   3,724    18,623    1,197    8,812    9,353    6,890    -    -    (2,243)   149,782 
Selling, general and administrative expenses   (22,049)   (58)   (3,745)   (3,729)   (355)   (2,596)   (4,274)   (3,280)   -    -    (3,947)   (44,033)
Other operating income   5,021    -    -    16    11    28    2    -    -    -    -    5,078 
Other operating expenses   (304)   -    (140)   (28)   -    (127)   (7)   -    -    -    (625)   (1,231)
Operating income   86,110    (74)   (161)   14,882    853    6,117    5,074    3,610    -    -    (6,815)   109,596 
Share of loss in associates   -    -    -    -    -    -    -    -    130    -    -    130 
Amortization and depreciation   6,974    -    4,361    3,400    189    2,983    1,860    2,960    -    -    4,354    27,081 
Adjusted Ebitda   93,084    (74)   4,200    18,282    1,042    9,100    6,934    6,570    130    -    (2,461)   136,807 
Financial income                                                          13,887 
Financial loss                                                          (85,788)
Amortization and depreciation                                                          (27,081)
Income before income tax expense                                                          37,825 
Income tax expense                                                          (11,518)
Income for the period                                                          26,307 
March 31, 2018 (Unaudited)                                                            
Current assets   213,540    311    51,128    43,525    3,742    46,257    22,925    48,282    -    (95,649)   165,856    499,917 
Non-current assets   699,236    6    1,421,984    156,979    4,930    170,316    50,298    242,872    12,060    (750)   440,326    3,198,257 
Capital Expenditure   44,524    -    1,352    499    58    897    218    2,296    -    -    13    49,857 
Current liabilities   135,892    50    60,940    29,822    3,858    21,714    34,921    74,696    -    (94,561)   99,934    367,266 
Non-current liabilities   412,114    -    1,303,848    63,268    1,075    95,960    5,645    74,314    -    (1,840)   363,390    2,317,774 
                                                             
Period ended March 31, 2017 (Unaudited)                                                            
Revenue   224,934    108    31,871    28,777    3,754    16,998    21,712    26,289    -    (1,944)   1,155    353,654 
Cost of services   (129,834)   (32)   (28,864)   (12,169)   (2,874)   (10,087)   (12,842)   (21,347)   -    1,944    (3,423)   (219,528)
Gross profit   95,100    76    3,007    16,608    880    6,911    8,870    4,942    -    -    (2,268)   134,126 
Selling, general and administrative expenses   (22,663)   (49)   (2,986)   (2,821)   (325)   (2,829)   (4,031)   (5,679)   -    -    (2,148)   (43,531)
Other operating income   4,771    -    -    23    3    19    1    -    -    -    87    4,904 
Other operating expenses   (141)   (4)   -    (46)   -    (108)   (7)   -    -    -    (29)   (335)
Operating income   77,067    23    21    13,764    558    3,993    4,833    (737)   -    -    (4,358)   95,164 
Share of loss in associates   -    -    -    -    -    -    -    38    34    -    (122)   (50)
Amortization and depreciation   7,808    -    4,226    3,308    153    2,834    1,836    2,202    -    -    4,094    26,461 
Adjusted Ebitda   84,875    23    4,247    17,072    711    6,827    6,669    1,503    34    -    (386)   121,575 
Financial income                                                          30,719 
Financial loss                                                          (79,465)
Amortization and depreciation                                                          (26,461)
Income before income tax expense                                                          46,368 
Income tax expense                                                          (11,615)
Income for the period                                                          34,753 
December 31, 2017 (Audited)                                                            
Current assets   200,982    425    66,631    24,697    2,887    38,110    42,760    62,144    -    (74,280)   215,122    579,478 
Non-current assets   709,689    7    1,432,833    159,880    5,121    173,087    51,941    236,893    11,790    (1,093)   441,588    3,221,736 
Capital Expenditure   231,998    41    13,589    6,327    852    5,778    934    20,013    -    -    24    279,556 
Current liabilities   151,794    64    262,624    23,536    3,755    22,741    42,929    89,057    -    (73,004)   208,526    732,022 
Non-current liabilities   412,242    -    1,271,776    64,050    1,175    95,159    6,571    73,762    -    (2,369)   349,684    2,272,050 

 

 - 12 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

4Revenue

 

   For the three-month period ended
March 31,
 
   2018
(Unaudited)
   2017
(Unaudited)
 
Aeronautical revenue   204,802    187,069 
Non-aeronautical revenue          
Commercial revenue   137,210    131,592 
Construction service revenue   46,616    34,572 
Other revenue   2,256    421 
    390,884    353,654 

 

5Cost of services

 

   For the three-month period ended
March 31,
 
   2018
(Unaudited)
   2017
(Unaudited)
 
Salaries and social security contributions   (51,538)   (49,210)
Concession fees (**)   (48,907)   (47,881)
Construction services cost   (46,162)   (34,256)
Maintenance expenses   (36,506)   (34,896)
Amortization and depreciation   (25,020)   (24,648)
Services and fees   (13,624)   (13,044)
Cost of fuel   (6,855)   (4,627)
Taxes (*)   (4,628)   (4,735)
Office expenses   (4,206)   (3,282)
Provision for maintenance cost   (1,111)   (717)
Others   (2,545)   (2,232)
    (241,102)   (219,528)

 

(*) Mainly includes tax from turnover and municipal taxes.

(**) Includes depreciation for Brazil concession assets of USD 7,143 as of March 31, 2018 (USD 7,805 as of March 31, 2017).

 

6Selling, general and administrative expenses

 

   For the three-month period ended
March 31,
 
   2018
(Unaudited)
   2017
(Unaudited)
 
Taxes (*)   (14,319)   (13,560)
Services and fees   (10,468)   (11,888)
Salaries and social security contributions   (9,404)   (8,508)
Office expenses   (2,321)   (3,057)
Amortization and depreciation   (2,061)   (1,813)
Maintenance expenses   (1,077)   (1,040)
Bad debts   (937)   (533)
Advertising   (497)   (787)
Insurance   (474)   (618)
Charter service   (207)   (202)
Bad debts recovery   -    216 
Other   (2,268)   (1,741)
    (44,033)   (43,531)

 

(*) Mainly includes tax from taxes over banks transactions and tax on revenue.

 

 - 13 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

7Other operating income

 

   For the three-month period ended
March 31,
 
   2018
(Unaudited)
   2017
(Unaudited)
 
Government grant (*)   5,021    4,771 
Other   57    133 
    5,078    4,904 

 

(*) Corresponds to government grant for the development of airport infrastructure in Group A (operated by AA2000) of the National Airport System. There are no unfulfilled conditions or other contingencies attaching to these grants. The group did not benefit directly from any other forms of government assistance.

 

8Financial results, net

 

   For the three-month period ended
March 31,
 
   2018
(Unaudited)
   2017
(Unaudited)
 
         
Interest income   2,668    19,700 
Foreign exchange income   10,220    10,950 
Other   999    69 
Financial income   13,887    30,719 
           
Interest expense   (25,925)   (42,101)
Foreign exchange transaction expenses   (32,645)   (10,314)
Changes in liability for Brazil concessions   (21,577)   (25,980)
Other   (5,641)   (1,070)
Financial loss   (85,788)   (79,465)
Net financial results   (71,901)   (48,746)

 

9Income tax expense

 

   For the three-month period ended
March 31,
 
   2018
(Unaudited)
   2017
(Unaudited)
 
         
Current income tax   (25,218)   (21,340)
Deferred income tax   13,700    9,725 
    (11,518)   (11,615)

 

 - 14 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

10Intangible assets, net

 

   Concession
Assets
   Goodwill   Patent,
intellectual
property rights
and others
   Total 
                 
Cost                    
Values at January 1, 2018   3,312,006    57,049    14,867    3,383,922 
Acquisitions   48,092    -    16    48,108 
Translation differences   (42,983)   124    362    (42,497)
    3,317,115    57,173    15,245    3,389,533 
Depreciation                    
Accumulated at the beginning of the period   553,767    313    11,488    565,568 
Depreciation of the period   31,639    -    319    31,958 
Translation differences   (6,003)   (23)   337    (5,689)
    579,403    290    12,144    591,837 
At March 31, 2018   2,737,712    56,883    3,101    2,797,696 
                     
Cost                    
Values at January 1, 2017   3,334,564    56,013    15,162    3,405,739 
Acquisitions   37,630    -    160    37,790 
Disposals   (3)   -    -    (3)
Translation differences   62,418    83    697    63,198 
    3,434,609    56,096    16,019    3,506,724 
Depreciation                    
Accumulated at the beginning of the period   569,090    306    11,156    580,552 
Depreciation of the period   32,202    15    146    32,363 
Translation differences   1,538    10    159    1,707 
    602,830    331    11,461    614,622 
At March 31, 2017   2,831,779    55,765    4,558    2,892,102 

 

 - 15 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

11Cash and cash equivalents

 

   At March 31,
2018
(Unaudited)
   At December 31,
2017
(Audited)
 
Cash to be deposited   2,406    1,483 
Cash at banks   198,866    189,283 
Time deposits   73,599    29,003 
Other cash equivalents   879    1,832 
    275,750    221,601 

 

The Group operates with investment grade - financial institutions.

 

For the purposes of cash flow interim statement, cash and cash equivalents include the following:

 

   At March 31,
2018
(Unaudited)
   At March 31,
2017
(Unaudited)
 
Cash and cash equivalents   275,750    434,493 
Bank overdraft   (1)   (13)
    275,749    434,480 

 

12Borrowings

 

   At March 31,
2018
(Unaudited)
   At December 31,
2017
(Audited)
 
Non-current          
Bank and financial borrowings (**)   472,619    453,428 
Notes (*)   671,685    658,109 
Others   1,937    2,118 
    1,146,241    1,113,655 
Current          
Bank and financial borrowings (**)   49,206    311,902 
Notes (*)   27,189    24,306 
Loans with related parties (Note 16)   585    34,651 
Others   1,991    1,931 
    78,971    372,790 
Total Borrowings   1,225,212    1,486,445 

 

Changes in borrowings during the period is as follows:

 

   For the three-month period
ended March 31,
 
   2018
(Unaudited)
   2017
(Unaudited)
 
Balances at the beginning of the period   1,486,445    1,107,241 
Loans obtained   174,289    395,346 
Loans paid   (452,686)   (192,691)
Interest paid   (17,332)   (31,311)
Accrued interest for the period   28,462    41,180 
Translation differences   6,034    13,107 
At the end of the period   1,225,212    1,332,872 

 

The maturity of borrowings is as follows:

 

   1 year or less   1 - 2
years
   2 – 5
years
   Over 5
years
   Total 
At March 31, 2018 (1)   146,447    183,457    527,473    956,859    1,814,236 
At December 31, 2017 (1)   422,746    230,464    523,855    803,436    1,980,501 

 

(1) The amounts disclosed in the table are undiscounted cash flows of principal and estimated interest. Variable interest rate cash flows have been estimated using variable interest rates applicable at the end of the reporting period.

 

 - 16 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

12Borrowings (Cont.)

 

(*) Notes include the following:

 

-In 2007 Puerta del Sur S.A. issued 7.75% secured guaranteed notes for USD 87 million, due 2021. The principal balance of the Puerta del Sur Notes, together with accrued interest, will be repaid in 22 total installments, with individual installments occurring on April 29 and October 29 of each year beginning in 2011 and ending in 2021. The main covenants on these bonds are limitations on liens and encumbrances and compliance with certain financial ratios. Puerta del Sur may be limited to declare, make or pay any dividends unless the debt coverage service ratio exceeds 1.7x and the indebtedness ratio is less than 3.0. As of March 31, 2018 and December 31, 2017 Puerta del Sur S.A. was in compliance with all of its covenants. Puerta del Sur Notes are secured by a trust to which Puerta del Sur has transferred the following sums: (a) the sum of funds which Puerta del Sur has or has rights to for services offered in administration, construction, and maintenance of Carrasco Airport; (b) the sum of funds received from the duty-free store in Carrasco Airport; (c) the sum of funds received as a result of the permitted operation of the cargo terminal in Carrasco Airport; and (d) the sum of funds Puerta del Sur has received or will have right to receive from the government or from a third party successor as a result of a management agreement, or as a consequence of the redemption, termination, mutual dissolution and/or resolution of the management agreement for whatever reason, this trust is only use in case of non-compliance with the Notes obligations.

 

-In 2015, ACI Airport Sudamérica S.A.U. issued 6.875% senior secured guaranteed notes, for USD 200 million due in 2032. The principal balance will be repaid in 34 installments, May 29 and November 29 of each year, commencing on May 29, 2016 while accrued interest will be repaid commencing on November 29, 2015. The main covenants on these bonds are limitations on take additional indebtedness, make payments of dividends and other payments that are specifically restricted, selling assets as well as requiring compliance with certain financial ratios. The holders of these notes benefit from a guarantee and a security package including the pledge of the shares in Puerta del Sur S.A. and Cerealsur S.A., and certain accounts of Cerealsur and ACI Airport Sudamérica. As of March 31, 2018 and December 31, 2017 they were guaranteed with a stand by letter of credit of CAAP with Bank of América. These notes are fully and unconditionally guaranteed by Cerealsur S.A. As of March 31, 2018 and December 31, 2017, ACI Airport Sudamérica S.A. was in compliance with all of its covenants.

 

-On January 8, 2018, Corporación América Italia S.A. (“CAI”) issued € 60.0 million (USD 71.8 million) aggregate principal amount of 4.556% secured notes due 2024 (the “Italian Notes”). The proceeds of the Italian Notes were used to refinance and replace the 6.250% secured notes due 2019 issued by CAI in December 2014. Interest on the Italian Notes is payable annually in arrears on June 30 of each year. The Italian Notes will mature on December 31, 2024. The Italian Notes are secured by an economic first ranking pledge in respect of all the shares representing 100% of the share capital of CAI, 100% of the share capital of Dicasa Spain S.A.U. and the shares representing CAI’s holding in Toscana Aeroporti SpA.

 

-Notes issued in April and December 2010 by AA2000, totalling USD 328 million maturing in 2020. Annual Interest rates on these notes are 10% and 10.75% respectively. As long as these notes are outstanding AA2000 is required to comply with certain commitments, such as certain limitations to liens on its assets, mergers, spin-offs, sale of assets, new debts, distribution of dividends and payment to its shareholders. In March 2017, they were totally cancelled.

 

-On February 6, 2017, AA2000 issued 6.875% senior secured notes for a nominal amount of USD 400 million due 2027. The principal will be amortized in 32 equal quarterly installments as from May 1, 2019. The main covenants of these bonds require compliance with certain financial ratios as well as restriction to incur in additional debt and limitations on the payments of dividends if any default or unmatured default has occurred. As of March 31, 2018 AA2000 was in compliance with all of its covenants. On March 13, 2017 AA2000 early redeemed in full the notes issued in December 2010 for a principal amount of USD 157.5 million, recognizing a loss of approximately USD 13 million on the extinguishment that was included in interest expenses in financial loss. As a result of the renegotiation of its borrowings, the restrictions on distribution of dividends has significantly eased.

 

 - 17 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

12Borrowings (Cont.)

 

(**) As of March 31, 2018 significant bank and financial borrowings include the following:

 

Company   Lender   Currency   Maturity   Interest Rate   Outstanding
(In millions
of USD)
  Capitalization(3)
Inframérica Concessionaria do Aeroporto Sao Goncalo do Amarante   BNDES   Brazilian Reales   September 2032   Variable   TJLP (1) plus spread   9.5    
  BNDES   Brazilian Reales   June 2032   Variable   T.R.plus spread plus IPCA   2.3    
  BNDES   Brazilian Reales   September 2032   Variable   T.R. plus spread plus IPCA   5.9   A
  BNDES   Brazilian Reales   September 2022   Fixed   2.5%   3.0    
  BNDES   Brazilian Reales   July 2032   Variable   T.R. plus spread plus IPCA   2.7    
                             
Inframérica Concessionaria do Aeroporto de Brasilia   BNDES   Brazilian Reales   December 2033   Variable   TJLP (1) plus spread   312.3   A
  Bradesco   Brazilian Reales   July 2022   Variable   TJLP (1) plus spread   0.3   D
  Bradesco   Brazilian Reales   July 2022   Variable   Selic plus spread   0.1   D
  Pine   Brazilian Reales   December 2018   Variable   CDI plus spread   9.7   C
                             
Terminal Aeroportuaria de Guayaquil S.A   Banco Guayaquil SA   USD   2019   Variable   6.52%-6.79%   3.5   D
  Banco Bolivariano CA   USD   2019   Variable   7.06%   4.9   D
                             
Terminal de Cargas de Uruguay SA   Santander Uruguay   USD   June 2020   Fixed   4.25%   1.0   D
                             
Toscana Aeroporti S.p.a.   MPS Servicio capital   Euro   June 2022   Variable   Euribor 6 month plus spread    9.5   B
  Banco de Innovación de Infraestructuras y Desarrollo   Euro   September 2027   Variable   Euribor 6 month plus spread    33.6   D
  Credem   Euro   May 2018   Variable   Euribor 1 month plus spread    6.2   D
  BNL   Euro   January 2019   Variable   Euribor 3 month plus spread   3.1   D
  BPM   Euro   June 2022   Variable   Euribor 3 month plus spread    0.6   D
  BPM   Euro   June 2023   Variable   Euribor 3 month plus spread    0.6   D
                             
Armenia International Airports CJSC   Credit Suisse AG   USD   June 2022   Variable   Libor 6 month plus spread   52.4   B
      Euro   June 2022   Variable   Euribor 6 month plus spread   59.9    
                             
Aeropuertos Argentina 2000 SA   Banco Ciudad   Argentine peso   September 2018    Fixed   27.86%   0.6   D
                             
Aeropuerto de Bahía Blanca S.A.   Banco de la Nación Argentina   Argentine peso   March 2019   Variable   BADLAR (2) plus spread   0.1   A
                             
Total                       521.8    

 

 - 18 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

12Borrowings (Cont.)

 

(**) As of December 31, 2017 significant bank and financial borrowings include the following:

 

Company   Lender   Currency   Maturity   Interest Rate   Outstanding
(In millions
of USD)
  Capitalization(3)
Inframérica Concessionaria do Aeroporto Sao Goncalo do Amarante   BNDES   Brazilian Reales   September 2032   Variable   TJLP (1) plus spread   98.6    
  BNDES   Brazilian Reales   June 2032   Variable   T.R. plus spread plus IPCA   2.2    
  BNDES   Brazilian Reales   September 2032   Variable   T.R. plus spread plus IPCA   5.8   A
  BNDES   Brazilian Reales   September 2022   Fixed   2.5%   3.2    
  BNDES   Brazilian Reales   July 2032   Variable   T.R. plus spread plus IPCA   1.5    
  BNDES   Brazilian Reales   July 2032   Variable   T.R. plus spread plus IPCA   1.2    
                             
Inframérica Concessionaria do Aeroporto de Brasilia   BNDES   Brazilian Reales   December 2028   Variable   TJLP (1) plus spread   218.4   A
  CAIXA   Brazilian Reales   December 2028   Variable   TJLP (1) plus spread   72.8   A
  CAIXA   Brazilian Reales   December 2017   Variable   IPCA   5.7   A
  CAIXA   Brazilian Reales   December 2023   Fixed   6%   4.8   A
  Bradesco   Brazilian Reales   July 2022   Variable   TJLP (1) plus spread   0.3   D
  Bradesco   Brazilian Reales   July 2022   Variable   Selic plus spread   0.1   D
  Santander   Brazilian Reales   June 2018   Variable   CDI plus spread   90.9   A
  Citibank   Brazilian Reales   March 2018   Fixed   9%   14.6   C
  Pine   Brazilian Reales   January 2018   Variable   CDI plus spread   9.7   C
                             
Terminal Aeroportuaria de Guayaquil S.A   Banco Guayaquil SA   USD   2019   Variable   6.86%-6.92%   4.1   D
  Banco Bolivariano CA   USD   2019   Variable   6.92%   5.6   D
                             
Terminal de Cargas de Uruguay SA   Santander Uruguay   USD   June 2020   Fixed   4.25%   1.1   D
                             
Toscana Aeroporti S.p.a.   MPS Servicio capital   Euro   June 2022   Variable   Euribor 6 month plus spread    9.3   B
  Banco de Innovación de Infraestructuras y Desarrollo   Euro   September 2027   Variable   Euribor 6 month plus spread    34.4   D
  Credem   Euro   November 2018   Variable   Euribor 3 month plus spread    6.0   D
  BPM   Euro   June 2022   Variable   Euribor 3 month plus spread    0.5   D
                             
Armenia International Airports CJSC   Credit Suisse AG   USD   June 2022   Variable   Libor 6 month plus spread   57.1   B
      Euro   June 2022   Variable   Euribor 6 month plus spread   51.2    
                             
Corporación América Airports S.A.   Goldman Sachs   USD   March 2019   Variable   7.63%   50.1   D
  Julius Bär   USD   December 2019    Fixed   2.40%   15.0   B
                             
Aeropuertos Argentina 2000 SA   Banco Ciudad   Argentine peso   September 2018    Fixed   27.86%   1.0   D
                             
Aeropuerto de Bahía Blanca S.A.   Banco de la Nación Argentina   Argentine peso   March 2019    Variable   BADLAR (2) plus spread   0.1   A
                             
Total                       765.3    

 

(1) TJLP - Taxa de Juros de Longo Prazo (Brazilian Long term interest rate

IPCA: corresponds to the Brazilian consumer Price index)

 

(2) BADLAR – Buenos Aires Deposits of Large Amount Rate

 

(3) A - Secured/guaranteed

B – Secured/unguaranteed

C – Unsecured/guaranteed

D - Unsecured/unguaranteed

 

 - 19 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

12Borrowings (Cont.)

 

The Credit Facility Agreement between Inframérica Concessionária do Aeroporto de São Gonçalo do Amarante S.A. (“ICASGA”) and the Banco Nacional do Desenvolvimento Economico e Social (“BNDES”) pursuant to which BNDES provided a loan to Inframérica Concessionária do Aeroporto de São Gonçalo do Amarante S.A in November 2012, in an aggregate principal amount of R$ 329.3 million (USD 139.5 million) to finance the construction of the Natal Airport (issued in nine tranches with varying interest rates and maturity dates), is secured by the pledge of the shares of Inframérica Concessionária do Aeroporto de São Gonçalo do Amarante S.A, together with any dividends and distributions in connection therewith, as well as the fiduciary assignment of rights arising from the Natal Airport concession agreement and certain letters of guarantees issued by indirect shareholders and affiliates of Inframérica Concessionária do Aeroporto de São Gonçalo do Amarante S.A. for an amount of USD 6.1 million. It also establishes a required pre-authorization by BNDES on payments of Inframérica Concessionária do Aeroporto de São Gonçalo do Amarante S.A dividends if exceeding 25% of net profits.

 

Further, Inframérica Concessionária do Aeroporto de Brasilia (“ICAB”) also entered into credit facility arrangements with BNDES and Caixa Economica Federal (Caixa) for an aggregate principal amount of R$ 841 million (USD 356.4 million) in February 2014, which are secured by the pledge of Inframérica Concessionária do Aeroporto de Brasilia and Inframérica Participaçoes S.A. shares, the fiduciary assignment of rights arising from the Brasilia airport concession agreement and letters of guarantee issued by indirect shareholders and affiliates of Inframérica Concessionária do Aeroporto de Brasilia. It also establishes under certain circumstances a required pre-authorization by BNDES and Caixa on payments of Inframérica Concessionária do Aeroporto de Brasilia dividends if exceeding 25% of net profits and compliance of certain financial ratios.

 

In December 2017, ICAB and ICASGA entered into amendments and extension agreements with BNDES with respect to their loans.

 

In March 2018, ICASGA concluded its renegotiation with BNDES. The terms of the renegotiation include the early repayment of a large part of the debt and rescheduling of current maturities.

 

In March 14, 2018 BNDES has approved an amendment and extension of the loan agreements with ICAB that involves extending the final maturity and the interest-only payment terms of such loans for two years, and providing an interest capitalization period for 50% of the interest due for two years. In addition, such agreements increased the size of the credit facility commitments by R$ 300 million (USD 91.9 million).

 

In connection with such amendments and extension agreements, ACI Airports S.àr.l. and CAAP have agreed to not to create any encumbrances on their shares of Inframerica, and not to sell, acquire, merge or spin-off assets or undertake any other action that results or that may result in a change in the current corporate structure of Inframerica or any change of control in Inframerica, without the prior consent of BNDES. ACI Airports S.à r.l. has agreed not to undertake any change of control in CAAP without the prior consent of BNDES. In addition, ACI Airports S.àr.l.has agreed to maintain a minimum credit rating of at least B- (the “Minimum Rating”) or a stand-alone rating (without including the sovereign rating) of at least BB+. The amendment and extension agreements also require additional security equivalent to the amount of twenty-four months of debt service for at least a two-year period (in the form of a bank guaranty, letter of credit, guaranty insurance or other acceptable modalities of guarantee), if the Minimum Rating is not maintained for any annual testing period.

 

On December 14, 2017, ICAB entered into a banking letter of credit with Banco Citibank S.A. (the “Citibank Credit Agreement”) in the aggregate principal amount of R$48.0 million (USD 14.5 million). The loan under the Citibank Credit Agreement matures on March 14, 2018. Such loan was unsecured. The obligations under the Citibank Credit Agreement were absolutely and unconditionally guaranteed by ACI Airports S.à r.l.

 

On December 19, 2017, ICAB entered into a short-term banking letter of credit with Banco Pine S.A. (the “Banco Pine Credit Agreement”) in the aggregate principal amount of R$32.0 million (USD 9.7 million). Obligations under the Banco Pine Credit Agreement are absolutely and unconditionally guaranteed by CAAP. The loan under the “Banco Pine Credit Agreement” matures on January 2018; at that date, ICAB has made an amendment to the loan maturity from January to December 2018.

 

 - 20 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

12Borrowings (Cont.)

 

On December 20, 2017, under the terms of the Banco Santander Bridge Loan Facility, ICAB issued a promissory note in the aggregate principal amount of R$300.0 million (USD 90.7 million), which matures on June 18, 2018. Loans under the Banco Santander Bridge Loan Facility were fully secured by (i) a cash deposit made by CAAP under a time deposit pledge agreement entered on December 19, 2017 between CAAP and Banco Santander, in the amount of R$300.0 million (USD 90.7 million) which was included in Guarantee deposit. Such loans mature in 180 days as of the closing date thereunder; and (ii) a fiduciary assignment of ICAB’s account at Banco Santander where the funds from BNDES financings should be deposited. The Banco Santander Bridge Loan Facility was also guaranteed by Inframerica. The loans under the Banco Santander Bridge Loan Facility mature in 180 days.

 

On March 14, 2018, ICAB has repaid the credit facilities provided by Banco Santander Bridge and the Citibank for a total amount of USD 106.6 million (approximately $R 348) with the proceeds of the loan given by the BNDES.

 

As a result of this operation, the guarantee deposit held by CAAP has been released (approximately USD 92.9 million).

 

On December 15, 2015 Armenia International Airports CJSC entered into a senior secured dual-currency facility agreement with Credit Suisse AG (and other banks) for a principal amount up to USD 160 million, which is secured by: (a) the collateral assignment of all present and future rights arising from the Armenian Concession Agreement and other related agreement, a pledge over all present and future cash collateral bank accounts, a pledge over certain movable and immoveable assets related to the Zvartnots Airport and the pledge of Armenia International Airports CJSC shares.

 

According to the loan agreement Armenia International Airports CJSC has restrictions to distribution of dividends, has to maintain the following ratios at a certain level: debt to EBITDA, Debt service coverage and adjusted debt service coverage ratio. According to this agreement, the analysis of the accomplished of these ratios must be made as of June 30 and December 31. As of December 31, 2017, Armenia International Airports CJSC was in compliance with all of its covenants.

 

As of March 31, 2018 Armenia International Airports CJSC pledged cash held in bank accounts for USD 29.5 million (USD 25.4 million at December 31, 2017) and all intangible assets and property and equipment for a total of USD 169.9 million (USD 170.6 million at December 31, 2017).

 

Toscana Aeroporti S.p.A, pursuant to the loan agreement with Banco de Innovación de Infraestructuras y Desarrollo/ MPS Servicio capital is required to comply with certain financial ratios. As of March 31, 2018, Toscana Aeroporti S.p.A was in compliance with all of its covenants. Cash and cash equivalents of the Consolidated Statement of Financial Position includes € 1 million, to secure the abovementioned loan.

 

On December, 2017 CAAP entered into the Julius Baer Credit Agreement, pursuant to which Julius Baer & Co. Ltd. provided a loan in the aggregate principal amount of USD 15 million. Loan under the Julius Baer Credit Agreement was secured by cash collateral provided by a company controlled by the Group of the Shareholder and mature 24 months from the closing date thereunder.

 

On December 20, 2017, CAAP entered into the GS Credit Agreement, pursuant to which Goldman Sachs Bank USA provided a loan to the Company in the aggregate principal amount of $50.0 million.

 

In February 2018, CAAP fully repaid the Julius Baer Credit Agreement and the GS Credit Agreement, the cash collateral with Julius Baer was released when the loan was repaid.

 

 - 21 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

13Other liabilities

 

   At March 31,
2018
(Unaudited)
   At December
31, 2017
(Audited)
 
Non-current          
Concession fee payable (*)   932,805    916,203 
Advances from customers   29,618    31,909 
Provision for maintenance costs (**)   22,434    22,207 
Employee benefit obligation (***)   9,302    9,068 
Other taxes payable   7,242    8,531 
Provisions for legal claims (****)   6,158    5,798 
Salary payable   2,287    916 
Other liabilities with related parties (Note 16)   1,772    1,816 
Other payables   9,082    10,344 
    1,020,700    1,006,792 
           
Current          
Salary payable   38,287    41,753 
Concession fee payable (*)   34,648    54,840 
Other taxes payable   28,438    32,840 
Provision for maintenance costs (**)   10,460    9,496 
Other liabilities with related parties (Note 16)   6,687    33,132 
Advances from customers   6,004    6,124 
Provision for legal claims (****)   3,134    3,127 
Expenses provisions   1,839    4,569 
Other payables   27,496    23,605 
    156,993    209,486 

 

Maturity of the other liabilities is as follows:

 

   1 year or less   1 - 2 years   2 - 5 years   Over 2 years   Total 
At March 31, 2018   157,929    93,889    304,452    2,498,805    3,055,075 
At December 31, 2017   188,192    94,590    306,318    2,520,425    3,109,525 

 

(*) The most significant amount included in the commitments to the grantor are generated by the concession agreement between The Brazilian National Civil Aviation Agency – ANAC and Inframerica Concessionária do Aeroporto de Brasilia S.A. and Inframerica Concessionária do Aeroportode São Gonçalo do Amarante S.A.

 

Changes in the period of the concession fee payable is as follows:

 

   For the three-month period ended
March 31,
 
   2018
(Unaudited)
   2017
(Unaudited)
 
Balances at the beginning of the period   971,043    1,173,346 
Acquisition of subsidiaries   -    777 
Financial result   21,577    25,980 
Concession fees   41,765    40,075 
Payments   (61,312)   (60,124)
Translation differences   (5,620)   34,310 
At the end of the period   967,453    1,214,364 

 

(**) Changes in the period of the provision for maintenance costs is as follows:

 

   For the three-month period ended
March 31,
 
   2018
(Unaudited)
   2017
(Unaudited)
 
Balances at the beginning of the period   31,703    26,826 
Accrual of the period   1,209    839 
Use of the provision   (846)   (271)
Translation differences   828    361 
Balances at the end of the period   32,894    27,755 

 

 - 22 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

13Other liabilities (Cont.)

 

(***) Changes in the period of the provision for employee benefits is as follows:

 

   For the three-month period ended
March 31,
 
   2018
(Unaudited)
   2017
(Unaudited)
 
Balances at the beginning of the period   9,068    8,498 
Actuarial gain/loss (in other comprehensive income)   (9)   (38)
Interest for services   84    38 
Service cost   74    63 
Amounts paid in the period   (130)   (233)
Translation differences   215    102 
At the end of the period   9,302    8,430 

 

(****) Changes in the period of the provision for legal claims is as follows:

 

   For the three-month period ended
March 31,
 
   2018
(Unaudited)
   2017
(Unaudited)
 
Balances at the beginning of the period   8,925    5,878 
Accrual of the period   409    1,384 
Use of the provision   95    (265)
Translation differences   (137)   (969)
Balances at the end of the period   9,292    6,028 

 

14Equity

 

a) Share capital

 

The movements of shares capital for the period is as follows:

 

   For the three-month period ended
March 31,
 
   2018
(Unaudited)
   2017
(Unaudited)
 
At the beginning of the period   1,500,000    20 
Reverse stock split (*)   (1,351,883)   - 
Initial Public Offering (**)   11,905    - 
At the end of the period   160,022    20 

 

(*) On January 19, 2018, the Shareholder approved a 1-to-10.12709504 reverse stock split of its common shares, consequently decreasing the outstanding common shares from 1,500,000,000 common shares to 148,117,500 common shares (the “Reverse Stock Split”). The nominal value of USD 1.00 of each common share did not change as a result of the Reverse Stock Split. It implied a reduction of share capital of USD 1,351,883 and an increase in Non-Distributable Reserves. The non-distributable reserve creation was in relation with Luxembourg corporate law perspective, as the free distributable reserve could be distributable only to the shareholder that has contributed the amount into the reserve, instead the non-distributable reserve will be distributable on a pro rata basis to all shareholders.

 

(**) On February 2, 2018, CAAP submitted the final prospectus to the U.S. Securities and Exchange Commission as an initial public offering of common shares of Corporación América Airports S.A. which was declared effective by such commission. The offering was of 11,904,762 common shares with a nominal value of USD 1 and the Shareholder offered 16,666,667 common shares which were fully subscribed. As a consequence of the Initial Public Offering, the share capital of CAAP has increased to 160,022,262 shares. The initial public offering price per common share was USD 17.00. As a result, CAAP had proceeds of USD 195,601 net of underwriting discounts and commissions but before other issuing expenses.

 

 - 23 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

14Equity (Cont.)

 

On February 5, 2018 the Executive Committee; in accordance with (i) the provisions of the articles of associations of the Company, and (ii) the resolutions taken by the Company´s board of directors which determined and confirmed the creation and composition of the Executive Committee and also the powers delegated to it with respect of the Initial Public Offering; resolved to approve the issuance of the new shares, acknowledged having received sufficient evidence showing that the subscription price of the new shares had been paid, and the amendment of the articles of associations in respect of the new share capital of USD 160,022,262.

 

b) Free distributable reserves

 

The disclosure of contributions received at each period are as follows:

 

   For the three-month period ended
March 31,
 
   2018
(Unaudited)
   2017
(Unaudited)
 
At the beginning of the period   385,055    1,907,328 
Cash contributions   -    3,810 
At the end of the period   385,055    1,911,138 

 

c) Share premium

 

As of March 31, 2018 includes the differences between the nominal value of USD 1 per common share and the initial public offering price of USD 17 deducted from the underwriting discounts and commissions and other expenses directly related to the offering.

 

   As of March 31, 2018     
Share premium   190,476      
Underwriting discounts and expenses   (9,990)     
Net share premium   180,486      

 

d) Other comprehensive income

 

The movements of the reserve of other comprehensive income for the period of the owners of the Company is as follows:

 

   Currency
translation
adjustments
   Remeasurement
of defined
benefit
obligations (*)
   Share of other
comprehensive
income from
associates
   Income Tax
effect (*)
   Transfer from
shareholders equity –
currency translation
differences
   Total 
                         
Balances at January 1, 2018   (241,091)   123    (39,611)   (57)   63,402    (217,234)
Other comprehensive income (loss) for the period   (20,743)   6    115    (1)   -    (20,623)
For the period ended March 31, 2018   (261,834)   129    (39,496)   (58)   63,402    (237,857)
                               
Balances at January 1, 2017   (212,080)   106    (40,043)   (54)   63,402    (188,669)
Other comprehensive income (loss) for the period   9,401    27    42    (5)   -    9,465 
For the period ended March 31, 2017   (202,679)   133    (40,001)   (59)   63,402    (179,204)

 

(*) Income tax relating to OCI amounts to Remeasurement of defined benefit obligations. The movement was recognized as other comprehensive income of other reserves.

 

 - 24 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

14Equity (Cont.)

 

e) Non- controlling interest

 

   For the three-month period ended
March 31,
 
   2018
(Unaudited)
   2017
(Unaudited)
 
At the beginning of the period   335,359    354,174 
Adjustment on adoption of IFRS 9 (net of tax)   542    - 
Adjusted balance at January 1, 2018   335,901    354,174 
Shareholder contributions (*)   43,703    - 
(Loss)/income for the period   (188)   2,296 
Other comprehensive (loss)/income          
Currency translation   (3,514)   6,249 
Remeasurement of defined benefit obligations   5    23 
Reserve for income tax   (1)   (7)
    (3,510)   6,265 
Changes in non-controlling interest          
Changes in the participations (**)   (14,039)   - 
Dividends approved   (8,477)   (8,060)
    (22,516)   (8,060)
Non-controlling interest at the end of the period   353,390    354,675 

 

(*) Corresponds to contributions made by the non-controlling interest in Inframerica Concessionária do Aeroporto de Brasilia S.A.

(**) On February 19, 2018, CAI purchased an additional 4.568% (850,235 shares) of the share capital of Toscana Aeroporti S.p.A to Fondazione Pisa, for a purchase price of €15.80 per share, paying a total amount of € 13,434 (approximately USD 16,513). As a result of the acquisition, CAI holds approximately 55.698% of Toscana Aeroporti’s share capital.

 

15Contingencies, commitments and restrictions on the distribution of profits

 

a. Contingencies

 

CAAP and its subsidiaries are, from time to time, subject to various claims, lawsuits and other legal proceedings, including customer claims, in which third parties are seeking payment for alleged damages, reimbursement for losses or indemnity. Some of these claims, lawsuits and other legal proceedings are subject to substantial uncertainties. Accordingly, the potential liability with respect to such claims, lawsuits and other legal proceedings cannot be estimated with certainty. Management, with the assistance of legal counsel, periodically reviews the status of each significant matter and assesses potential financial exposure. If a potential loss from a claim, lawsuit or proceeding is considered probable and the amount can be reasonably estimated, a provision is recorded. Accruals for loss contingencies reflect a reasonable estimate of the losses to be incurred based on information available to management as of the date of preparation of the financial statements, and take into consideration the Group’s litigation and settlement strategies.

 

The Company believes that the aggregate provisions recorded for losses in these financial statements, are adequate based upon currently available information.

 

There are no other lawsuits or legal proceedings different from the ones included in the Consolidated Financial Statements for the year ended December 31, 2017, except for the determination of the Ecuadorian Tax authorities of an additional tax charge for an amount of USD 2.4 million in relation with fiscal year 2014 legal proceeding, TAGSA will dispute the validity of this new claim.

 

b. Commitments

 

There are no new commitments or significant changes related to the concession agreements in the current period from the ones included in the Consolidated Financial Statements for the year ended December 31, 2017.

 

 - 25 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

15Contingencies, commitments and restrictions on the distribution of profits (Cont.)

 

c. Restrictions to the distribution of profits and payment of dividends

 

As of Mach 31, 2018 and December 31, 2017, equity as defined under Luxembourg laws and regulations consisted of:

 

   At March 31,
2018
(Unaudited)
   At December
31, 2017
(Audited)
 
Share capital   160,022    1,500,000 
Share premium   180,486    - 
Legal reserve   2    2 
Free distributable reserves   385,055    385,055 
Non-distributable reserves   1,351,883    - 
Retained earnings   29,902    31,206 
Total equity in accordance with Luxembourg law   2,107,350    1,916,263 

 

At least 5% of the Company’s net income per year, as calculated in accordance with Luxembourg law and regulations, must be allocated to the creation of a legal reserve equivalent to 10% of the Company’s share capital. Dividends may not be paid out of the legal reserve.

 

The Company may pay dividends to the extent, among other conditions, that it has distributable retained earnings calculated in accordance with Luxembourg laws and regulations.

 

16Related party balances and transactions

 

Corporación América Airports S.A. is controlled by ACI Airports S.àr.l., which is controlled by ACI Holding S.àr.l., which is controlled by Corporación America International S.àr.l. (previously denominated America Corporation International S.àr.l.), Luxembourg’s companies.

 

Corporacion America International S.àr.l. is controlled by Liska Investments Corporation, a company incorporated under the laws of the British Virgin Islands.

 

Liska Investments Corporation is controlled by Southern Cone Foundation (CAAP`s ultimate parent company), a foundation created under the laws of Liechtenstein, having its corporate domicile in Vaduz. The foundation's purpose is to manage its assets through the decisions adopted by its independent board of directors. The potential beneficiaries of this foundation are members of the Eurnekian family and religious, charitable and educational institutions.

 

Transactions and balances with “Associates” are those carried out with entities over which CAAP exerts significant influence in accordance with IFRS, but does not have control. Transactions and balances with related parties, which are not associates and are not consolidated are disclosed as “Other related parties”.

 

The Group receives services from related parties, such as internal audit, management control, financial assistance, technology outsourcing services and construction services. The Group has also significant assets and liabilities arise from financial agreements with related parties.

 

 - 26 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

16Related party balances and transactions (Cont.)

 

Summary of balances with related parties are:

 

   At March 31,
2018
(Unaudited)
   At December 31,
2017
(Audited)
 
Year-period balances          
           
(a) Arising from sales / purchases of goods / others          
Trade receivables with other related parties   948    1,130 
Other receivables with associates   4,979    5,555 
Other receivables with other related parties   9,249    9,775 
Other financial assets with other related parties   3,532    3,621 
Trade payables to other related parties   (4,402)   (5,667)
    14,306    14,414 
(b) Financial debt          
Borrowings to other related parties(*)   (585)   (34,651)
    (585)   (34,651)
(c) Other liabilities          
Other liabilities to other related parties   (8,459)   (34,948)
    (8,459)   (34,948)

 

(*) Loans with related parties were secured by a cash collateral by a company controlled by the Group of the Shareholder and were paid on February 8, 2018.

 

   For the three-month period ended March 31, 
   2018
(Unaudited)
   2017
(Unaudited)
 
Transactions          
Commercial revenue   1,657    1,181 
Fees   217    197 
Interest accruals   (528)   (672)
Acquisition of goods and services   (3,421)   (3,074)
Others   (127)   (251)

 

Remunerations received by the Group’s key staff (company`s directors) amounted to approximately 2.64% of total remunerations accrued at March 31, 2018 (3.83% as of March 31, 2017).

 

17Cash flow disclosures

 

   For the three-month period ended March 31, 
Changes in working capital  2018
(Unaudited)
   2017
(Unaudited)
 
Other receivables and credits   16,207    (9,487)
Inventories   611    (1,105)
Other liabilities   (99,219)   (75,244)
    (82,401)   (85,836)

 

The most significant non-cash transactions are detailed below:

 

   For the three-month period ended March 31, 
   2018
(Unaudited)
   2017
(Unaudited)
 
Intangible assets acquisition with an increase in Other liabilities / Borrowings   (517)   (135)
Dividends not paid   (6,232)   (5,500)
Borrowings cost capitalization   (3,405)   - 

 

 - 27 - 
Corporación América Airports S.A.  Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2018 and 2017 (amounts in thousands of U.S. dollars).

 

18Fair value measurement of financial instruments

 

According to the classification included in Note 3 B of the Consolidated Financial Statements as of December 31, 2017, the Company categorizes its financial instruments as assets and liabilities at amortized cost.

 

For the majority of these instruments, the fair values are not materially different to their carrying amounts, since the interest receivable/payable is either close to current market rates or the instruments are short-term in nature. Significant differences were identified for the following instruments at March 31, 2018:

 

   Fair value   Carrying amount 
Trust funds   126,167    132,142 
Long-term borrowings   1,126,344    1,146,241 

 

19Subsequent events

 

There are no subsequent events that significantly affect the Company´s financial position as of March 31, 2018.

 

 - 28 - 

(Back To Top)