Corporacion America Airports(US:CAAP)2022-08-19 14:53Financial Data and Key Metrics Changes - Adjusted EBITDA increased to $111 million, up from $9 million in the same quarter last year, reflecting a strong recovery trend in passenger traffic [5][15] - Adjusted EBITDA margin ex-IFRIC recovered to 36.2%, significantly up from mid-single-digit margin in the second quarter of last year [6] - Total operating costs and expenses ex-IFRIC12 increased by 57% year-on-year, but this was significantly below the 149% revenue growth [14] Business Line Data and Key Metrics Changes - Aeronautical revenues more than tripled year-on-year, reaching 81% of pre-pandemic figures, with Armenia showing a 10% increase from second quarter 2019 levels [13] - Commercial revenues were up 99% year-on-year, surpassing second quarter 2019 by 20%, driven by higher cargo and fueling services [13] - Cargo operations reached close to 84% of second quarter 2019 volumes, with Italy and Uruguay exceeding pre-pandemic levels [12] Market Data and Key Metrics Changes - Total passenger traffic reached 15.1 million, or 76% of second quarter 2019 levels, with July traffic nearly at 80% of pre-pandemic levels [7] - Traffic in Italy increased by more than five times year-on-year, reaching nearly 85% of second quarter 2019 levels [9] - Brazil's traffic stood at 76% of second quarter 2019 levels, slightly below the previous quarter, but grew to 85% in July [10] Company Strategy and Development Direction - The company is focused on two key value creation initiatives: economic re-equilibriums in Brazil and Armenia, and selecting value creation investment opportunities [20] - The company aims to provide a superior experience across its 53 airports while integrating sustainability into operations and infrastructure [21] Management's Comments on Operating Environment and Future Outlook - Management expects pent-up demand and the elimination of restrictions to continue supporting recovery in passenger traffic trends [19] - The company remains vigilant on macro and geopolitical situations that could impact operations [19] Other Important Information - The total liquidity position at the end of the quarter was $448 million, down from $646 million at the end of March 2022 [16] - Total debt was $1.5 billion, with net debt at $1.2 billion, and the net debt to adjusted EBITDA ratio declined to 3.5 times from 5.1 times [17] Q&A Session Summary Question: Details on the big asset sale in the cash flow statement - Management clarified that there were no asset sales, but significant cash utilization included the redemption of preferred shares in Argentina and prepayment of a syndicated loan facility in Armenia [27] Question: Interest in new airport projects - Management confirmed active interest in new projects, including potential opportunities in Barbados and Brazil, while focusing on improving current operations [24][25]