Corporacion America Airports(US:CAAP)2021-11-18 17:18Financial Data and Key Metrics Changes - Traffic across operations reached 10.5 million passengers, up 90% sequentially, and 46% of pre-pandemic levels compared to Q3 2019 [7] - Revenues excluding IFRIC more than doubled year-on-year to nearly $170 million, up 38% sequentially, reaching 55% of Q3 2019 levels [9] - Comparable adjusted EBITDA improved to $38 million from $7 million in the prior quarter and a loss of $19 million in Q3 2020 [10][28] - Total liquidity position at the end of the quarter was $297 million, with total debt stable at $1.3 billion [37] Business Line Data and Key Metrics Changes - Aeronautical revenues increased over two times year-on-year, reaching 39% of pre-pandemic levels [24] - Commercial revenues reached 70% of 2019 levels, with cargo revenues increasing by 10% versus 2019 [25] - Cargo activity reached 82% of pre-pandemic levels, with Uruguay and Italy exceeding 2019 cargo volume levels [9][23] Market Data and Key Metrics Changes - Argentina and Uruguay were heavily impacted by government travel restrictions, while traffic in Brazil and Armenia showed significant recovery [8][19] - Passenger traffic in Italy was up over 85% year-on-year, reaching 50% of Q3 2019 levels [17] - Traffic in Brazil more than doubled year-on-year, reaching 74% of the corresponding quarter in 2019 [18] Company Strategy and Development Direction - The company has taken steps to strengthen liquidity and improve the debt profile, refinancing $425 million in existing debt and obtaining $179 million in new funding [11] - A 20-year extension of the Carrasco International airport concession in Uruguay was obtained, adding six regional airports [12][30] - The company is focused on economic re-equilibrium processes across concessions to restore equity value [40] Management's Comments on Operating Environment and Future Outlook - Management expects passenger dynamics to continue improving as the summer season approaches, supported by lower travel restrictions and pent-up demand [39] - The company remains cautious about the pandemic's impact and is monitoring COVID-19 cases in Europe [39] - Long-term expectations include sustained traffic growth and a focus on new business opportunities [40][42] Other Important Information - The company achieved positive adjusted EBITDA in all countries of operations except Peru, with margins above 2019 levels in Ecuador and Armenia [28] - The company has maintained compliance with debt covenants, with no direct indebtedness at the corporate level [37] Q&A Session Summary Question: Details on Uruguay concession extension and future traffic revenues - Management indicated that investments are required to bring new airports to certification levels, with a planned investment of $67 million over four years [47][49] Question: Outlook for dividends post-COVID crisis - Management stated it is too early to determine dividend policies but indicated a return to pre-COVID dividend ideas is likely [50] Question: Expectations for cost dynamics in the coming quarters - Management expects higher operating expenses as traffic levels normalize but anticipates a better cost base post-pandemic [53]