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]

Passenger traffic increased year-on-year by 16.2% in Puerto Rico and 14.5% in Colombia and decreased by 5.7% in Mexico MEXICO CITY, Jan. 6, 2025 /PRNewswire/ -- Grupo Aeroportuario del Sureste, S.A.B. de C.V.  (NYSE: ASR; BMV: ASUR), ASUR, a leading international airport group with operations in Mexico, the U.S. and Colombia, today announced that passenger traffic for December 2024 reached a total of 6.7 million passengers, representing an increase of 2.3% compared to December 2023. Passenger traffic increa ...

Investors interested in Transportation - Services stocks are likely familiar with Grupo Aeroportuario del Sureste (ASR) and C.H. Robinson Worldwide (CHRW) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out. The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Sty ...

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]

Grupo Aeroportuario del Sureste, S. A. B. de C. V. (NYSE:ASR) Q2 2024 Results Conference Call July 24, 2024 10:00 AM ET Company Participants Adolfo Castro - Chief Executive Officer Conference Call Participants Rodolfo Ramos - Bradesco BBI Guilherme Mendes - JPMorgan Jens Spiess - Morgan Stanley Investment Jay Singh - Citibank Pablo Monsivais - Barclays Alberto Valerio - UBS Anton Mortenkotter - GBM Operator Good day, ladies and gentlemen, and welcome to ASUR's Second Quarter 2024 Results Conference Call. My ...

Financial Data and Key Metrics Changes - Total revenues increased nearly 18% year-on-year to MXN7 billion in Q2 2024, with Colombia showing top line growth in the 30s [8][9] - Consolidated EBITDA rose 18% year-on-year to MXN5 billion, with an adjusted EBITDA margin remaining relatively unchanged at 69% [11][12] - Net majority income surged 50% year-on-year to MXN3.7 billion, benefiting from a foreign exchange gain of nearly MXN950 million [13][14] Business Line Data and Key Metrics Changes - Aeronautical services revenue in Mexico grew in the high 20s, while non-aeronautical revenues increased low single digits [9] - Commercial revenues increased 7%, with significant growth in Colombia at 40% and record high commercial revenues per passenger in Mexico at MXN154.5 [10][12] - Cost and expenses rose nearly 30% year-on-year, with total costs up 16%, slightly below revenue growth [11] Market Data and Key Metrics Changes - Passenger traffic was up 3% year-on-year to nearly 18 million, with Colombia experiencing a 21% increase, while traffic in Mexico declined close to 5% [6][7] - International traffic saw declines from all regions except Canada, with domestic traffic impacted by Pratt & Whitney engine issues and capacity reductions at Mexico City Airport [8] Company Strategy and Development Direction - The company is focused on expanding its commercial offerings, having opened 45 new commercial spaces over the past 12 months [10] - Key projects include expansions at Cancun Airport and Riohacha Airport, with ongoing project planning and bidding processes [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from Pratt & Whitney engine issues and reduced capacity at Mexico City Airport, which are expected to continue affecting traffic [14] - The company anticipates normalization in Puerto Rico traffic and a recovery in Colombia towards the end of the year [20][28] Other Important Information - The company maintains a healthy financial position with cash and cash equivalents of nearly MXN15 billion after dividend payments totaling MXN6.3 billion [12] - The company is in the final stages of establishing a strategic alliance with a non-governmental organization to prevent human trafficking [5] Q&A Session Summary Question: Update on Pratt & Whitney recall and its impact on traffic - Management expects the affected planes to return to production by the end of September, with stabilization anticipated by Q1 next year [16] Question: Insights on commercial revenues and future openings - Management noted strong performance in parking and car rental, with expectations for continued growth in commercial revenues [20] Question: Realized tariff and concerns about peso depreciation - Management confirmed a realized tariff of MXN326, representing around 95% of the maximum tariff, and indicated that peso depreciation could help achieve tariff objectives [22][23] Question: Traffic expectations for Cancun and U.S. market - Management expressed concerns about ongoing negative impacts on Cancun traffic due to domestic issues and potential U.S. election-related effects [34] Question: CapEx expectations and split between MDP and non-MDP - Management indicated that the MDP for the year is around MXN3.8 billion, with a slow start to spending due to project development timelines [31]

Passenger traffic increased year-on-year by 24.5% in Colombia and 11.6% in Puerto Rico, and declined 5.5% in Mexico MEXICO CITY, July 8, 2024 /PRNewswire/ -- Grupo Aeroportuario del Sureste, S.A.B. de C.V. (NYSE: ASR; BMV: ASUR), ASUR, a leading international airport group with operations in Mexico, the U.S. and Colombia, today announced that passenger traffic for June 2024 reached a total of 6.1 million passengers, representing an increase of 3.8% compared to June 2023. Passenger traffic presented year-on- ...

MONTERREY, Mexico, June 10, 2024 (GLOBE NEWSWIRE) -- Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA” or the “Company”) (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) announces today that it has entered into a new derivative instrument in the form of an accelerated share repurchase transaction (“ASR”) to repurchase the Company’s American Depositary Shares (“ADSs”)1. Under the terms of this new ASR, FEMSA has agreed to repurchase up to USD $600 million of its ADSs. The total number of ADSs ultimately repurchased und ...