Financial Data and Key Metrics Changes - Total revenues for Q4 2024 increased by 19% year-on-year to MXN 7.4 billion, reflecting strong performance across all regions [11][12][22] - Net majority income for the year rose 33% year-on-year to MXN 13.6 billion, supported by resilient operational performance and a foreign exchange gain of MXN 2 billion [22][23] - Consolidated EBITDA increased by 23% year-on-year to over MXN 5 billion, with an adjusted EBITDA margin improving by 200 basis points to 69.7% [18] Business Line Data and Key Metrics Changes - Passenger traffic was flat year-on-year, down 0.3% at 17.7 million passengers for Q4, with full-year traffic at 71 million [5] - Colombia's revenue grew by 30%, while Mexico and Puerto Rico saw low teens growth, with Mexico accounting for 72% of total revenues [12][13] - Commercial revenues per passenger grew in the high single digits year-on-year, reaching MXN 130 in Q4 [15] Market Data and Key Metrics Changes - Colombia experienced mid-teens growth in passenger traffic, with international traffic up 29% and domestic traffic up 7% [6][7] - Puerto Rico's total traffic increased nearly 10%, supported by a strong growth in international traffic [7] - Mexico's performance remained soft, with an 8% decline in passenger traffic, affected by Pratt & Whitney engine restrictions and capacity constraints at Mexico City Airport [8][9] Company Strategy and Development Direction - The company aims to strengthen its airport network through strategic infrastructure investments to enhance passenger experience and expand commercial opportunities [22][23] - Expansion projects include the construction and expansion of Terminal 1 at Cancun Airport, expected to be completed by 2026, and Terminal 4 by 2028 [21] - The company is focused on recovering commercial opportunities lost due to capacity restrictions, particularly in Terminal 2 [29][46] Management's Comments on Operating Environment and Future Outlook - Management expects traffic trends to normalize in Q1 2025 towards sustainable levels, with improvements anticipated by the end of Q3 2025 regarding capacity restrictions [28][33] - The company acknowledges ongoing challenges from Pratt & Whitney engine issues but expects a gradual improvement in operations [27][93] - Management remains optimistic about the resilience of markets like Colombia and Puerto Rico, with expectations for continued growth [50] Other Important Information - Total expenses increased by 13% year-on-year, primarily due to increased concession fees and minimum wages in Mexico [17] - Capital expenditure accelerated to MXN 2.5 billion in Q4, accounting for half of the total MXN 4.4 billion for the year [19][20] Q&A Session Summary Question: Traffic growth expectations and airline network development in Mexico - Management indicated that traffic will continue to be affected by capacity restrictions and Pratt & Whitney issues, but improvements are expected by Q3 2025 [27][28] Question: Capacity increase at Mexico City Airport - Management noted that there are discussions about lifting capacity restrictions at Mexico City Airport, potentially by Q3 2025 [32][33] Question: International traffic flow nuances - Management reported that international traffic from Canada was nearly flat, with no significant changes due to political rhetoric in the U.S. [36][38] Question: Tulum Airport's impact on Cancun - Management confirmed that Tulum's traffic is included in regulatory calculations, but it is not termed as compensation [68][70] Question: Commercial revenue targets post-expansion - Management stated that there are no specific targets for commercial revenues per passenger, as it is a moving target [45][46] Question: Updates on Dominican Republic assets - Management indicated that there are no updates on the Dominican Republic asset, as the legal process continues [82][84]

Core Points - General Motors has approved a $0.03 increase in its quarterly common stock dividend, raising it to $0.15 per share, effective with the next planned dividend in April 2025 [3] - The company has authorized a new $6 billion share repurchase program, with an initial $2 billion to be executed through an accelerated share repurchase (ASR) program [1][5] - Capital spending for 2025 is projected to be between $10 billion and $11 billion, including over $8 billion for research and product development [2] Capital Allocation Strategy - The company is focused on three pillars: reinvesting in profitable growth, maintaining a strong investment-grade balance sheet, and returning capital to shareholders [2] - The share repurchase program aligns with the company's commitment to its capital allocation policy [4] Share Repurchase Details - The ASR program will involve an aggregate of $2 billion to retire GM common stock, with the total number of shares repurchased determined by the average daily volume-weighted prices during the program [5] - GM has $4.3 billion remaining under its share repurchase authorizations for additional opportunistic repurchases [6] Business Outlook - GM's business plan is deemed confident, with a strong balance sheet and agility to respond to public policy changes [4] - The company is leveraging advanced technology to build a diverse portfolio of vehicles, including both internal combustion engine (ICE) vehicles and electric vehicles (EVs) [7]

Core Insights - Grupo Aeroportuario del Sureste (ASUR) reported a total passenger traffic of 6.4 million in January 2025, reflecting a year-on-year increase of 1.7% compared to January 2024 [1][2]. Passenger Traffic Summary - Passenger traffic in Colombia increased by 12.3%, driven by a 24.2% rise in international traffic and an 8.7% increase in domestic traffic [2][4]. - In Puerto Rico, passenger traffic grew by 9.3%, with international traffic up by 20.5% and domestic traffic increasing by 8.0% [2][4]. - Conversely, Mexico experienced a decline in passenger traffic of 4.1%, with international traffic down by 6.5% and domestic traffic decreasing by 0.7% [2][4]. Detailed Traffic Breakdown - For Mexico, total passenger traffic was 3,714,152 in January 2025, down from 3,871,735 in January 2024 [4][6]. - Domestic traffic in Mexico was 1,611,881, a slight decrease of 0.7% from the previous year [4][6]. - International traffic in Mexico saw a more significant decline, falling to 2,102,271, a decrease of 6.5% [4][6]. - In Puerto Rico, total passenger traffic reached 1,216,168, marking a 9.3% increase [4][6]. - Colombia's total passenger traffic was 1,495,926, reflecting a 12.3% increase [4][6]. Company Overview - ASUR operates 16 airports across the Americas, including nine in southeast Mexico and six in northern Colombia [7]. - The company is a significant player in the airport sector, particularly with Cancun Airport being a major tourist destination [7]. - ASUR is also involved in a joint venture for the operation of Luis Muñoz Marín International Airport in San Juan, Puerto Rico [7].

Investment Philosophy - The company emphasizes a value investing approach that aligns with personality and analytical strengths, focusing on realistic market performance rather than supernatural trading abilities [1] - A significant portion of the portfolio is maintained in index funds, while active investments are concentrated on carefully selected opportunities [1] Market Focus and Strategy - The company specializes in identifying value opportunities, particularly in small and mid-cap sectors where market inefficiencies are prevalent [1] - As a contrarian value investor, the focus is on industry leaders in out-of-favor sectors, quality companies facing temporary setbacks, and businesses with strong balance sheets and robust cash generation [1] Analytical Approach - The analytical framework prioritizes balance sheet strength from a credit perspective, near-term cash flow generation, next twelve-month earnings forecasts, and book value analysis, especially for financial sector investments [1] Professional Background - The company's value investing strategy is supported by over 10 years of experience in financial sector consulting, specifically with banks, insurance companies, and payment firms, which aids in identifying overlooked opportunities [1] - A practical and down-to-earth investment approach is maintained, focusing on straightforward value investing principles combined with industry expertise and patience for reliable results [1]

Group 1 - Grupo Aeroportuario del Sureste (NYSE: ASR) is one of Mexico's three publicly traded airport operators, controlling nine airports in Mexico, six in Colombia, and one in Puerto Rico [1] - The company is involved in the management and operation of airports, which is a critical infrastructure sector in the region [1] - The investment group led by Ian Bezek focuses on high-quality compounders and growth stocks, indicating a strategy that may align with the growth potential of airport operations in Latin America [2]

Core Insights - Grupo Aeroportuario del Sureste (ASUR) reported a total passenger traffic of 6.7 million in December 2024, marking a 2.3% increase compared to December 2023 [1][4] - Passenger traffic in Puerto Rico increased by 16.2%, while Colombia saw a 14.5% rise, contrasting with a 5.7% decline in Mexico [2][4] Passenger Traffic Performance - In Puerto Rico, international traffic surged by 29.3% and domestic traffic rose by 14.7% [2][4] - Colombia's international traffic grew by 26.6%, and domestic traffic increased by 11.1% [2][4] - Mexico experienced declines in both international (5.6%) and domestic (6.0%) traffic [2][4] Year-to-Date Comparisons - Year-to-date figures show a total of 71.3 million passengers in 2024, a slight increase of 1.1% from 2023 [4] - Domestic traffic year-to-date in Mexico decreased by 6.9%, while international traffic saw a smaller decline of 2.6% [4] Airport-Specific Data - Cancun Airport, a key asset for ASUR, reported a 7.2% decrease in passenger traffic for December 2024 compared to the previous year [6] - San Juan Airport in Puerto Rico, operated by ASUR, recorded a total of 1.3 million passengers in December 2024, reflecting a 16.2% increase [5][6] Company Overview - ASUR operates 16 airports across the Americas, including nine in southeast Mexico and six in northern Colombia [7] - The company is also a 60% joint venture partner in Aerostar Airport Holdings, which operates Luis Muñoz Marín International Airport in San Juan, Puerto Rico [7][8]

Core Viewpoint - Grupo Aeroportuario del Sureste (ASR) is currently more attractive to value investors compared to C.H. Robinson Worldwide (CHRW) based on various valuation metrics and earnings outlook [3][7]. Valuation Metrics - ASR has a forward P/E ratio of 2.21, significantly lower than CHRW's forward P/E of 25.88 [5]. - The PEG ratio for ASR is 0.78, indicating better value relative to its expected earnings growth compared to CHRW's PEG ratio of 1.43 [5]. - ASR's P/B ratio stands at 2.73, while CHRW has a P/B ratio of 8.45, further highlighting ASR's relative undervaluation [6]. Earnings Outlook - ASR holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while CHRW has a Zacks Rank of 3 (Hold) [3][7]. - The improving earnings outlook for ASR suggests stronger estimate revision activity compared to CHRW [7].

Financial Performance - Total revenue increased by 18.1% YoY to Ps.7,483.3 million, with consolidated EBITDA rising by 12.0% YoY to Ps.4,700.4 million[2]. - Net income rose by 23.8% YoY to Ps.3,474.6 million, with earnings per share increasing by 24.8% to Ps.11.2706[3]. - Operating profit for Q3 2024 was Ps.4,097.2 million, with an operating margin of 54.8%, down from 58.0% in Q3 2023[20]. - EBITDA increased by 12.0% YoY to Ps.4,700.4 million, with a consolidated EBITDA margin of 62.8% compared to 66.2% in Q3 2023[22]. - Total operating costs and expenses increased by 27.3% YoY to Ps.3,386.1 million, with significant increases in personnel and maintenance costs across all regions[13]. - Total revenues increased by 18.1% YoY to Ps.7,483.3 million in Q3 2024, driven by a 96.6% increase in construction services revenues and a 19.4% increase in aeronautical services revenues[11]. Passenger Traffic - Total passenger traffic declined by 2.1% YoY, with Mexico experiencing a 10.1% decrease, while Puerto Rico and Colombia saw increases of 4.6% and 15.5%, respectively[2][6]. - Passenger traffic in Mexico for 3Q24 was 9.6 million, down from 10.7 million in 3Q23, while Colombia's traffic reached 4.3 million[6][8]. - Domestic passenger traffic in Mexico decreased by 8.0% in Q3 2024 compared to Q3 2023, totaling 5,255,435 passengers[102]. - International passenger traffic in Mexico decreased by 12.6% in Q3 2024, totaling 4,369,475 passengers[102]. - In Colombia, total passenger traffic increased by 15.5% in Q3 2024, reaching 4,314,938 passengers[102]. Capital Expenditures - Capital expenditures (Capex) surged by 183.8% YoY to Ps.1,042.4 million, indicating a strong investment in infrastructure[3]. - Capital expenditures in 3Q24 amounted to Ps.1,042.4 million, significantly higher than Ps.367.4 million in 3Q23, with a focus on modernizing Mexican airports[47]. - Capital expenditures for the first nine months of 2024 totaled Ps.1,861.8 million, compared to Ps.663.3 million in the same period of 2023[48]. Financial Position - Cash and cash equivalents at the end of the quarter were Ps.18,483.6 million, with a net debt position of (Ps.5,853.2 million)[3]. - The company reported a negative net debt to LTM EBITDA ratio of (0.3), reflecting a strong financial position[3]. - Total debt increased by 3.3% to Ps.12,630.4 million from Ps.12,224.8 million as of December 31, 2023, primarily due to foreign exchange impacts and debt principal payments[32]. - Cash and cash equivalents totaled Ps.18,483.6 million, providing a strong liquidity position against total debt of Ps.12,630.4 million[40]. - The interest coverage ratio improved to 12.1x as of September 30, 2024, compared to 11.4x a year earlier[37]. Regional Performance - Total revenues in Mexico increased by 17.1% YoY to Ps.5,386.4 million, driven by a 19.3% increase in aeronautical services revenues[50]. - Total Puerto Rico revenues increased by 14.5% year-over-year to Ps.1,215.6 million in 3Q24, with non-aeronautical services revenues rising by 14.5% and aeronautical services revenues by 11.7%[68]. - Total revenues in Colombia rose by 29.9% YoY to Ps.881.3 million in 3Q24, with commercial revenue per passenger increasing to Ps.52.0 from Ps.43.3 in 3Q23[83]. Operational Highlights - The company reported a consolidated comprehensive financing gain of Ps.906.5 million in Q3 2024, significantly up from Ps.143.0 million in Q3 2023, primarily due to a foreign exchange gain[23]. - ASUR opened 18 new commercial spaces across various airports, enhancing its retail and service offerings[54]. - The company is diversifying its revenue streams with new partnerships in Colombia, including airlines and food and beverage sectors, with several agreements expected to generate revenue from October 2023 to August 2024[104]. Market Outlook - The overall market outlook remains cautious due to the decline in passenger traffic in Mexico, but growth in other regions provides a balanced perspective[2][6]. - The strategic expansion into new markets and sectors is expected to drive growth, with a focus on both car rental and retail operations across various regions[104].

Core Viewpoint - Grupo Aeroportuario del Sureste (ASR) has demonstrated resilience compared to its peers due to its strong tourist-driven business, diverse operations, and robust non-aero revenue base, despite challenges in the broader Mexican airport sector [1][6] Financial Performance - Revenue increased by 20%, with a notable 18% growth in revenue excluding construction, aligning with expectations [2] - Aerospace revenue rose 24% year-over-year, slightly below expectations, while non-aero revenue grew 7%, exceeding expectations by approximately 3% [2] - Consolidated EBITDA increased by 18% year-over-year, with margins improving by 80 basis points to 69.2%, although it declined sequentially by 4% [2] Traffic and Capacity Challenges - Sureste's traffic faced a decline, with domestic traffic down 7% and international traffic down 2.5%, while overall traffic to Cancun decreased by about 8% [2][4] - The company has less exposure to issues with Pratt & Whitney aircraft engines, with only about 8% to 10% of its traffic at risk [4] Government Policy and Economic Factors - Sureste's recent Master Development Program with the government reduces its exposure to potential changes in government policy [4] - Economic risks persist due to the appreciation of the peso making Mexico a more expensive destination, potentially impacting traffic volumes [4] Long-term Outlook - The company is expected to achieve around 12% revenue growth over the next five years, driven by new tariffs and traffic growth to major destinations [5] - Long-term annualized growth is projected to stabilize around 9%, with EBITDA margins expected to dip to approximately 57% [5] - Valuation approaches indicate that Sureste shares are undervalued, with a potential upside of about 30% based on discounted cash flow and multiples-based valuation [5][6]

Core Viewpoint - Grupo Aeroportuario del Sureste (ASUR) reported a solid second quarter for 2024, with significant growth in revenues and net income, despite challenges in passenger traffic in Mexico due to external factors like Pratt & Whitney engine issues and reduced capacity at Mexico City Airport [6][12][14]. Operational Performance - Passenger traffic increased by 3% year-on-year to nearly 18 million, marking a record high for the second quarter, with Colombia showing a 21% increase and Puerto Rico a 9% increase, while Mexico experienced a decline of nearly 5% [6][7][8]. - Colombia's traffic growth was driven by the recovery from the suspension of two operators, while Puerto Rico's growth was influenced by normalization following increased operations by Frontier Airlines [7][8]. Financial Performance - Total revenues rose nearly 18% to MXN 7 billion, with Colombia achieving over 30% growth, Mexico delivering high teens growth, and Puerto Rico in the middle single digits [9][12]. - Aeronautical services in Mexico saw high 20s growth, while non-aeronautical revenues increased low single digits [9][10]. - Consolidated EBITDA increased by 18% year-on-year to MXN 5 billion, with an adjusted EBITDA margin remaining stable at 69% [11][12]. Sustainability Initiatives - ASUR is compliant with various ESG reporting requirements and is in the process of calculating scope-3 carbon emissions, with 90% completion as of the end of Q2 [5]. - The company renewed its social project with Pronatura to support local fishing communities and is establishing a strategic alliance with a non-governmental organization to prevent human trafficking [5][6]. Capital Expenditures and Future Outlook - ASUR invested nearly MXN 650 million in CapEx during the quarter, focusing on projects like the expansion of Cancun Airport and Terminal 4 [13]. - The company maintains a healthy financial position with cash and cash equivalents of nearly MXN 15 billion, despite dividend payments totaling MXN 6.3 billion during the quarter [12][13].