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Central North Airport Group(OMAB)

 
123Jump Rating: - Short-Term Growth   Underwriters: Citigroup
      UBS Investment Bank
Status: Priced  
 
Address: Aeropuerto Intenrnacional De Monterray
FiledDate: 11/15/2006
  Carretera Miguel Alem?N, km. 24 S/N
   
  Apodaca, Nuevo Le?N 66600
Filed Price Range ($): $14.50-16.50
       
Telephone: 52-81- 8625 4300 Filed Offer Amount ($ Million): $198.00
       
Fax: Shares Offered (Millions): 10.43
       
Websites: Shares Outstanding (Millions):
       
Management: Ruben Barrera, CEO
IPO Date: 11/29/2006
     
  Final Offer Price ($): $18.00
       
Industry: Airlines Final Offer Size (Millions of Shares): 10.43
       
Employees: 933 Final Offer Amount ($ Million): $187.74
       
Competitors: S-1 Forms: 2006 S1-Form  download
     
   
       
     
     
     
       
 
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Company Links
Executives Products Services
Major Stock Holders   (Prior To Offering)

Name

Class A
SETA 14.70%

Major Stock Holders  (After Offering)

Name

Common Stock Class A Class B Class C Class L ADS
SETA 0% 14.70% 0% 0% 0% 0%

Business Environment

According to the Mexican Bureau of Civil Aviation, Monterrey International Airport was the fourth busiest airport in Mexico in 2005, in terms of commercial aviation passenger traffic (including both domestic and international passengers).

In 2005 and the first six months of 2006, a total of 4.7 million terminal passengers and 2.5 million terminal passengers, respectively, were served by Monterrey International Airport. Of the terminal passengers in 2005, 78.3% were domestic and 21.7% were international passengers. In the first six months of 2006, 81.4% were domestic and 18.6% were international. This airport serves primarily business travelers and is also a hub for the transportation of goods.

A total of 14 commercial airlines operate at the airport, the principal ones of which are Aviacsa, Aeroméxico, Mexicana and Aerolitoral. The airport is an important hub for Aviacsa and a maintenance center for Aeroliteral. The principal non-Mexican airlines operating at the airport are American and Continental. Airlines operating at this airport serve 27 destinations, of which 19 are domestic and 8 are international. Of these destinations, Mexico City, Toluca, Guadalajara, Tijuana, Houston, Cancun, Dallas, Merida, Hermosillo, Los Angeles, Las Vegas, Chicago and Madrid are the principal routes.

With an area of 60,000 square meters (645,840 square feet) for freight operations, Monterrey International Airport is the leading air-cargo terminal in northern Mexico. The airport offers one of Mexico\\\\\\\\\\\\\\\'s most attractive air shipping options, both as a final destination and as a logistical hub.

Company Strategy
The Company was incorporated in 1998 as part of the Mexican government\'s program for the opening of Mexico\'s airports to private investment.

Product/Services Portfolio
The Company operates 13 airports, which serve a major metropolitan area (Monterrey), tourist destinations (Acapulco, Mazatlán and Zihuatanejo), regional centers (Chihuahua, Culiacán, Durango, San Luis Potosí, Tampico, Torreón and Zacatecas) and border cities (Ciudad Juárez and Reynosa). The Company’s airports are located in 9 of the 31 Mexican states, covering a territory of approximately 926,421 square kilometers (approximately 575,667 square miles), with a population of approximately 24.0 million according to the National Institute of Statistics, Geography and Informatics and the Mexican National Population Council.

The Company’s airports serve several major international routes, including Monterrey-Houston, Monterrey-Dallas and Monterrey-Madrid, as well as several other major international destinations, including Los Angeles, Chicago, and Las Vegas. In addition, the Company’s airports serve major resort destinations, such as Acapulco, Mazatlán and Zihuatanejo, which are popular destinations in Mexico frequented by tourists from Mexico, the United States and Canada.

The Company’s airports also serve major domestic routes, including Monterrey-Mexico City, which was the country\\\\\\\\\\\\\\\'s busiest domestic route in 2005, with approximately 1.9 million total passengers, according to the Mexican Bureau of Civil Aviation. Other major domestic routes served by the Company’s airports include Mexico City-Ciudad Juárez, Mexico City-Acapulco and Culiacan-Tijuana, according to the Mexican Bureau of Civil Aviation.

Three of the Company’s airports, Acapulco International Airport, Mazatlán International Airport and Zihuatanejo International Airport, serve popular Mexican tourist destinations. Of these tourist destinations, Acapulco and Mazatlán are the largest, with Acapulco constituting Mexico\\\\\\\\\\\\\\\'s seventh largest international tourist destination and Mazatlán the fifth largest in terms of visitors in 2005, according to the Mexican National Institute of Immigration. Acapulco is a principal port of embarkation and disembarkation for cruise ships.

Investment Analysis
Total revenues for the first six months of 2006 were Ps. 771.5 million, 11.9% higher than the Ps. 689.5 million recorded in the first six months of 2005.

Cost of services increased 8.5% in the first six months of 2006, as compared to the first six months of 2005.

General and administrative expenses increased 8.7% to Ps. 109.3 million in the first six months of 2006, from Ps. 100.5 million in the first six months of 2005.

Operating income increased 15.7% to Ps. 302.5 million in the first six months of 2006, as compared to Ps. 261.3 million during the first six months of 2005.

Net income increased 35.1% during the first six months of 2006 to Ps. 254.5 million, from Ps. 188.4 million during the first six months of 2005.

Income Data (Thousand $ Except EPS)
Year Revenues Costs Oper Income Taxes Net Income EPS
2005 122,238 80,469 41,769 13,054 31,479 0.0803
2006 68,359 41,561 26,798 8,756 22,550 0.0575
*As of period ended June 30, 2006

Balance Sheet Data (Thousand $)

Year

Cash Acct Recv. Inventory Total Cur Assets Total Cur Liability PPE Total Assets LT Debt SH Equity
2005 140,966 7,528 0.00 165,965 12,830 125,908 709,664 0.00 648,167
2006 175,718 9,848 0.00 200,047 18,982 133,682 745,064 0.00 670,717
*As of period ended June 30, 2006
 

 

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