Corporacion America Airports(CAAP) - 2024 Q3 - Quarterly Report

Financial Performance - Consolidated revenues ex-IFRIC12 for Q3 2024 were $404.7 million, a decrease of 4.2% year-over-year, with commercial revenues down 6.6% and aeronautical revenues down 1.5%[7]. - Adjusted EBITDA ex-IFRIC12 decreased by 15.9% to$ 145.4 million, with an adjusted EBITDA margin of 35.9%, down from 40.9% in Q3 2023[7]. - Operating income for Q3 2024 was $100.9 million, down from$ 131.7 million in Q3 2023, reflecting a decrease in operating margin to 21.9%[7][8]. - Net income attributable to owners of the parent decreased by 68.4% to $14.7 million, with EPS dropping to$ 0.09 from $0.29 in Q3 2023[8][10]. - Total revenue for Q3 2024 was$ 238.6 million, a decrease of 3.1% year-over-year, primarily due to a 12.7% decline in commercial revenues[70]. - Total expenses for 3Q24 were $484.2 million, reflecting an 8.1% increase from$ 448.0 million in Q3 2023[147]. - Income tax expense surged to $80.6 million in Q3 2024, compared to$ 18.5 million in the same quarter last year[47]. - Financial loss for 9M24 was reported at - $153.1 million, a drastic change from a gain of$ 154.9 million in 9M23[149]. Passenger Traffic - Total passenger traffic declined by 3.9% year-over-year to 21.3 million, with domestic traffic in Argentina down 11.3% and international traffic up 9.9%[13][14]. - Domestic passenger traffic fell by 12.7% YoY to 10,628 thousand, while international passengers increased by 6.3% to 8,723 thousand, resulting in a total passenger decrease of 3.9% to 21,336 thousand[24]. - Domestic passenger traffic in Argentina decreased by 11.3% to 7,187,000 in Q3 2024 compared to Q3 2023[161]. - International passenger traffic in Argentina increased by 9.9% to 3,253,000 in Q3 2024 compared to Q3 2023[161]. - Total passenger traffic in Argentina decreased by 5.3% to 113,582,000 in Q3 2024 compared to Q3 2023[161]. - Total passenger traffic in Ecuador decreased by 3.6% YoY to 1.2 million passengers, with domestic traffic down 9.7% and international traffic up 2.8%[111]. Revenue Breakdown - Aeronautical revenues accounted for 46.2% of total revenues, decreasing by 1.5% YoY to $213.5 million, primarily due to reduced aircraft fees in Italy[33]. - Non-aeronautical revenues, which represent 53.8% of total revenues, decreased by 1.8% YoY to$ 248.3 million, with commercial revenues down by 6.6%[34]. - Commercial revenues decreased by 13.8% year-over-year, largely due to a 30.5% drop in Duty Free revenues attributed to the devaluation of the Argentine Peso[71]. - Aeronautical revenue for 9M24 was $659.1 million, reflecting an 11.7% increase from$ 590.0 million in 9M23[143]. - Non-aeronautical revenue increased by 3.9% to $710.7 million in 9M24, up from$ 683.8 million in 9M23[143]. Costs and Expenses - Total costs and expenses, excluding Construction Service Costs, increased by 5.4% YoY to $312.4 million, driven by higher maintenance expenses and salaries[36]. - Selling, General and Administrative Expenses (SG&A) rose by 13.3% YoY to$ 47.1 million, mainly due to increased services and fees[39]. - Total costs and expenses increased by 13.6% year-over-year to $211.6 million in Q3 2024, driven by higher service costs and SG&A expenses[72]. - Cost of services increased by 8.6% to$ 319.8 million in Q3 2024, compared to $294.6 million in Q3 2023[148]. Capital Expenditures and Investments - The company is progressing with capital expenditure programs in Armenia and Florence Airport, while also enhancing commercial revenues through new projects[5]. - Capital expenditures in Q3 2024 amounted to$ 58.0 million, a 21.7% year-over-year increase from $47.7 million in Q3 2023[61]. - The company plans to allocate capital expenditures primarily to the new departure terminal at Río Hondo Airport and ongoing construction at Aeroparque Airport[74]. - Capital expenditures in Italy increased by 87.4% YoY to$ 4.4 million in 3Q24[83]. Debt and Liquidity - The company reported a strong cash position of $511 million, with net debt to LTM adjusted EBITDA at 0.9x, down from 1.4x as of December 31, 2023[1][7]. - As of September 30, 2024, total debt decreased by 7.9% to$ 1,228.0 million from $1,333.2 million at the end of 2023[51]. - Cash and cash equivalents increased by 16.3% to$ 510.9 million from $439.4 million as of June 30, 2024[50]. - Total liquidity as of September 30, 2024, reached$ 604.9 million, up from $548.5 million as of June 30, 2024[50]. Market and Regulatory Environment - The regulator in Argentina approved a 124% increase in domestic passenger use fees effective November 1, which is expected to bolster revenues[6]. - The company noted that the exit of local airline Equair and high airfare prices impacted domestic travel demand[111]. Future Outlook - Future outlook includes continued focus on revenue growth in Uruguay and potential expansion strategies in other markets[27]. - The long-term strategy remains focused on disciplined capital deployment and seeking accretive acquisition opportunities[6].