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OMA Reports Third Quarter 2010 Earnings

MONTERREY, Mexico, Oct. 19, 2010 (GLOBE NEWSWIRE) -- Mexican airport operator Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., known as OMA (Nasdaq:OMAB) (BMV:OMA), reported its unaudited, preliminary results for the third quarter and first nine months of 2010 today.

Unless otherwise stated, all references are to the third quarter of 2010 (3Q10), and all percentage changes are with respect to the same period of the prior year. The exchange rate used for converting amounts in U.S. dollars was Ps. 12.4801 per US$.

Highlights

During the third quarter of 2010, passenger traffic grew 4.3%, the total number of takeoffs and landings increased 7.1%, and cargo volume rose 28.9%. Total revenues increased 16.6%, with growth in both aeronautical (+11.6%) and non-aeronautical (+38.1%) revenues. Noteworthy were the increased revenues generated by the NH Terminal 2 Hotel at the Mexico City International Airport ("NH T2 hotel"), other leases (+24.9%), advertising (+21.9%), restaurants (+24.5%), and OMA Carga (+49.6%), as well as increases in passenger charges. As a result of the bankruptcy filing by the airlines of Grupo Mexicana (Mexicana de Aviacion, Click Mexicana, and Mexicana Link) and their suspension of operations, the Company created a provision for Ps. 145.1 million, equivalent to 100% of Grupo Mexicana receivables. This provision is recorded under cost of services and affected operating income and Adjusted EBITDA, and caused a net loss for the quarter.

             
  3Q 09 3Q 10 % Var 9M 09 9M 10 % Var
Terminal passengers (million)  3.0  3.1  4.3  8.7  8.8  0.6
Total revenues (Ps. million)  488  569  16.6  1,414  1,608  13.8
Adjusted EBITDA (Ps. million)  265  159  (39.8)  750  704  (6.1)
Adjusted EBITDA margin (%) 54.2% 28.0%   53.1% 43.8%  
Adjusted EBITDA excluding provision (1) (Ps. million)  265  304  15.0  750  849  13.2
Adjusted EBITDA margin excluding provision (1) (%) 54.2% 53.5%   53.1% 52.8%  
Income from operations (Ps. million)  163  44  (72.7)  450  365  (18.8)
Income from operations excluding provision (1) (Ps. million)  163  190  16.5  450  510  13.5
Consolidated net income (Ps. million)  108  (5)  n/a   307  184  (40.2)
Net income of majority interest (Ps. million)  108  (4)  n/a   307  186  (39.5)
EPS* (Ps.)  0.27  (0.01)    0.78  0.47  
EPADS* (US$)  0.18  (0.01)    0.50  0.30  
Capital Expenditures (Ps. million)  169  104    587  338  
(1) Provision for doubtful accounts as a result of the bankruptcy filing by the Grupo Mexicana airlines was Ps.145.1 million and is not a cash outflow
*Based on weighted average shares outstanding
  • Passenger traffic increased 4.3% to 3.1 million. Domestic traffic increased 2.7% and international traffic increased 14.9%.  
  • Terminal B of the Monterrey airport started operations on September 1, 2010. Aeromexico, Aeromexico Connect, and Delta are operating at this new Terminal.  
  • Twenty-two new commercial spaces and passenger service establishments opened in our airports. The NH T2 hotel occupancy rate reached 70.7% for the quarter and 83.0% in September.  
  • Airfreight volumes and OMA Carga revenues increased 28.9% and 49.6%, respectively, principally as a result of the operation of DHL's cargo hub in Monterrey.  
  • Total revenues increased 16.6% to Ps. 569 million. Aeronautical revenues per passenger increased 7.1%, and non-aeronautical revenues per passenger increased 32.4%. Monterrey, OMA's principal airport, contributed 45.7% of revenues.  
  • OMA created a provision for doubtful accounts of Ps. 145.1 million, equal to 100% of the amounts owed to OMA by the Grupo Mexicana airlines as of September 30, 2010. This provision, included in cost of services, reduced operating income and Adjusted EBITDA, and resulted in a net loss for the quarter.  
  • Total operating costs and general and administrative expenses reached Ps. 374 million, including the Grupo Mexicana provision and the Ps. 18 million for hotel operating costs. Operating costs and GA expenses other than for the provision and hotel costs increased 14.9%, principally as a result of the start of operations of Terminal B and the Operations Control Center in Monterrey.  
  • Adjusted EBITDA was Ps. 159 million, with an adjusted EBITDA margin of 28.0%. Operating income was Ps. 44 million, with an operating margin of 7.8%. Adjusted for the effect of the provision for doubtful accounts, Adjusted EBITDA would be Ps. 304 million with a margin of 53.5%, and operating income would be Ps.189 million with a margin of 33.3%.  
  • As a result of the provision for the bankruptcy of the Grupo Mexicana airlines, the consolidated net loss was Ps. 5 million. Loss per share was Ps. 0.01, or US$0.01 per American Depositary Share (ADS).  
  • Capital expenditures were Ps. 104 million in 3Q10. Bank financing provided a portion of the resources used for capital expenditures.

The complete earnings report is available at http://ir.oma.aero .

OMA (Nasdaq :OMAB) (BMV:OMA) will hold a conference call on October 20, 2010 at noon Eastern time, 11:00 am Mexico City time.

The conference call is accessible by calling 877-941-2069 toll-free from the U.S. or +1 480-629-9713 from outside the U.S. The conference ID is 4375271. A taped replay will be available through October 27, 2010 at 877-870-5176 toll free or + 1-858-384-5517, using the same ID.

The conference call will also be available by webcast at http://ir.oma.aero/events.cfm .

This report may contain forward-looking information and statements. Forward-looking statements are statements that are not historical facts. These statements are only predictions based on our current expectations and projections about future events. Forward-looking statements may be identified by the words "believe," "expect," "anticipate," "target," or similar expressions. While OMA's management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and are generally beyond the control of OMA, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to, those discussed in our most recent annual report filed on Form 20-F under the caption "Risk Factors." OMA undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise.

About OMA

Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., known as OMA, operates 13 international airports in nine states of central and northern Mexico. OMA's airports serve Monterrey, Mexico's third largest metropolitan area, the tourist destinations of Acapulco, Mazatlan, and Zihuatanejo, and nine other regional centers and border cities. OMA also operates a hotel and commercial areas inside Terminal 2 of the Mexico City airport. OMA employs over 1,000 persons in order to offer passengers and clients, airport and commercial services in facilities that comply with all applicable international safety, security standards, and ISO 9001:2008. OMA's strategic shareholder members are ICA, Mexico's largest engineering, procurement, and construction company, and Aeroports de Paris Management, subsidiary of Aeroports de Paris, the third largest European airports operator. OMA is listed on the Mexican Stock Exchange (OMA) and on the NASDAQ Global Select Market (OMAB). For more information, please visit us at:

CONTACT:  Grupo Aeroportuario del Centro Norte, S.A.B. de C.V.
          Jose Luis Guerrero Cortes, CFO
          +52.81.8625.4300 ext.308
          jlguerrero@oma.aero

          Zemi Communications
          Daniel Wilson
          +1.212.689.9560
          dbmwilson@zemi.com

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