Allpark Empreendimentos Participações e Serviços (ALPK3) Q3 2023 earnings summary

Executive summary

• 3Q23 net revenue reached a fifth consecutive quarterly record of R$350.8m, up 18.9% YoY; adjusted EBITDA set a record at R$65.3m, up 41.7%.

• Net loss narrowed 58.9% YoY to R$14.0m; the portfolio reached 670 operations and 456,400 parking spaces.

• 18 operations opened in 3Q23 and 65 in 9M23; leased-and-managed locations represented 53.2% of total spaces in 9M23.

Financial highlights

• 9M23 revenue rose 21.9% to R$990.9m; managerial cash gross profit increased 34.1% to R$264.4m.

• 3Q23 cash gross profit rose 30.1% to R$95.9m; gross profit increased 24.2% to R$115.4m and operating profit before financial result rose 56.5% to R$46.2m.

• 9M23 operating cash flow was R$326.6m, versus R$279.3m in 9M22; September-end cash and equivalents were R$231.2m.

• 9M23 accounting net loss was R$47.6m, down 58.2%; adjusted FFO was R$93.4m versus R$20.1m in 9M22.

Outlook and guidance

• Strategic priorities include profitable growth, disciplined capital allocation, cost efficiency, SG&A control and lower leverage, with continued focus on leased-and-managed operations.

• The 11-airport administration agreement with CCR remained in implementation; five contracts were operating, covering 1,501 spaces.