Corporacion America Airports S.A. (NYSE:CAAP) Q3 2023 Earnings Conference Call November 16, 2023 9:00 AM ET

Company Participants

Patricio Inaki Esnaola - Head of Investor Relations

Martin Antranik Eurnekian - Chief Executive Officer

Jorge Arruda - Chief Financial Officer

Conference Call Participants

Fernanda Recchia - BTG

Stephen Trent - Citi

Operator

Good morning and welcome to the Corporacion America Airports Third Quarter Conference Call. A slide presentation accompanies today's webcast and is available in the Investor section of the Corporacion America Airports website. As a reminder, all participants are in a listen-only mode. There will an opportunity to ask questions at the end of the presentation.

At this time, I would like to turn the call over to Patricio Inaki Esnaola, Head of Investor Relations. Patricio, please go ahead.

Patricio Inaki Esnaola

Thank you. Good morning, everyone, and thank you for joining us today. Speaking during today's call will be Martin Eurnekian, our Chief Executive Officer; and Jorge Arruda, our Chief Financial Officer.

Before we proceed, I would like to make the following Safe Harbor statement. Today's call will contain forward-looking statements, and I refer you to the forward-looking statements section of our earnings release and recent filings with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances.

I will now turn the call over to our CEO, Martin Eurnekian.

Martin Antranik Eurnekian

Thank you, Inaki. Hello, everyone, and welcome to our third quarter 2023 earnings call. I will start today's call with an overview of key highlights, followed by a review of traffic and cargo trends. I will then hand it over to Jorge for an overview of our third quarter financial results.

We delivered another strong quarter with a robust performance across the business. Revenues ex-IFRIC12 increased 37% compared to third quarter 2019 and adjusted EBITDA set another record high at $173 million, up 73% compared to a third quarter of 2019 even with passenger traffic at 2% below pre-pandemic levels.

Adjusted EBITDA margin ex-IFRIC12 expanded 8.6 percentage points to 40.9% as we continue to drive operating gains. This good performance was supported by positive adjusted EBITDA growth across all geographies, reflecting our sustained focus on efficient execution together with the continued recovery in travel demand.

In addition, we closed the quarter with a strong balance sheet and a comfortable maturity profile. Our leverage ratio improved further this quarter, achieving an all-time low of 1.6 times on the back of higher profitability and a slight reduction in net debt.