Aéroports de Montréal

Aéroports de Montréal

November 02, 2007 10:23 ET

Aeroports de Montreal Announces its Results for the Third Quarter of 2007

MONTREAL, QUEBEC--(Marketwire - Nov. 2, 2007) - Aeroports de Montreal (ADM) today announced its consolidated financial results for the three- and nine-month periods ended September 30, 2007. These results are accompanied by data on passenger traffic and aircraft movements at Montreal-Trudeau and Montreal-Mirabel international airports.

Highlights

On October 16, ADM issued a new series of revenue bonds. The issue, privately placed with Canadian financial institutions, consists of $300 million in bonds bearing interest at 5.67% and maturing in 2037. Net proceeds of the issue will serve to finance airport improvement programs.

RBC Dominion Securities acted as leader of the syndicate of underwriters that also included CIBC World Markets, Desjardins Securities, Casgrain & Company and National Bank Financial.

Moody's Investors Service Inc. and Dominion Bond Rating Service respectively ranked this new bond issue A1 and A (high).

EBITDA (excess of revenues over expenses before interest, income taxes, amortization and share of investments at equity value) totalled $50.3 million for the third quarter of 2007 and $120.9 million for the nine-month period, an increase of $14.4 million, or 40.1%, and $28.0 million or 30.1%, respectively, over the corresponding periods of 2006.

The Corporation continued work on its various capital investment programs, mainly at Montreal--Trudeau airport. Work focused on the modernization of the domestic jetty, among other areas. In addition, work progressed to level 4 on the transborder departures sector and hotel.

The Corporation invested a total of $44.4 million during the third quarter of this year and $97.8 million for the first nine months. Investments in the airports were financed by cash flows from airport operations ($32.5 million for the quarter and $70.8 million for the nine-month period), including airport improvement fees, and by long-term debt ($11.9 million for the quarter and $27.0 million for the nine months).

Results

Consolidated revenues were $90.3 million for the third quarter of 2007, an increase of $16.2 million, or 21.9%, over the same period of 2006. Cumulative revenues as at September 30, 2007, rose by 32.7 million, up 15.3% over the year-ago period. The main contributor to this increase was the growth in passenger traffic.

Operating costs (excluding municipal taxes) for the third quarter amounted to $25.4 million, an increase of $2.0 million, or 8.5%, over the comparable period of 2006. For the nine-month period ended September 30, 2007, operating costs increased by 8.2%, rising from $75.4 million in 2006 to $81.6 million in 2007. This variance is due to the normal increase in total payroll costs, as well as to rises in certain operating costs, including those related to heightened security measures and initiatives undertaken to enhance customer service.

Like many companies, ADM considers EBITDA to be the best indicator for judging its financial performance and ability to meet its financial obligations. EBITDA was $50.3 million for the third quarter and $120.9 million for the nine months, representing respective increases of $14.4 million, or 40.1%, and $28.0 million, or 30.1%, over the corresponding periods for 2006.

Amortization amounted to $18.5 million for the third quarter and $55.6 million for the nine months ended September 30, 2007, representing respective increases of $0.8 million, or 4.5%, and $2.6 million, or 4.9%, compared with the same periods of 2006.

Interest on long-term bonds was $16.4 million for the quarter and $49.7 million for the nine-month period ended September 30, 2007, a decrease of $0.8 million, or 4.7%, and $2.1 million, or 4.1%, for the same year-earlier periods.

The quarter ended September 30, 2007, generated an excess of revenues over expenses of $16.2 million, compared with an excess of $2.1 million for the same period in 2006. The excess of revenues over expenses for the nine months amounted to $18.6 million, against a shortfall of $9.8 million for the comparable period of 2006. This favourable variance of $28.4 million is mainly due to increases in each of the main revenue-generating categories.



Financial highlights:

------------------------------------------------------------------------
Third quarter Cumulative as at
September 30, 2007
------------------------------------------------------------------------
(in millions of dollars) 2007 2006 Variance 2007 2006 Variance
(%) (%)
------------------------------------------------------------------------
Revenues 90.3 74.1 21.9 246.7 214.0 15.3
------------------------------------------------------------------------
Operating costs
(excluding PILT) 25.4 23.4 8.5 81.6 75.4 8.2
------------------------------------------------------------------------
Payments in lieu of
taxes (PILT) 8.4 8.3 1.2 25.0 26.0 (3.8)
------------------------------------------------------------------------
Rent paid to Transport
Canada 5.4 5.4 0.0 16.2 16.4 (1.2)
------------------------------------------------------------------------
Amortization 18.5 17.7 4.5 55.6 53.0 4.9
------------------------------------------------------------------------
Interest on long-term
bonds 16.4 17.2 (4.7) 49.7 51.8 (4.1)
------------------------------------------------------------------------
Total expenses 74.1 72.0 2.9 228.1 222.6 2.5
------------------------------------------------------------------------
Excess (shortfall) of
revenues over expenses
(before share
of investments at
equity value) 16.2 2.1 671.4 18.6 (8.6) (316.3)
------------------------------------------------------------------------
Share of investments at
equity value 0.0 0.0 _ 0.0 (1.2) (100.0)
------------------------------------------------------------------------
Excess (shortfall) of
revenues over expenses 16.2 2.1 671.4 18.6 (9.8) (289.8)
------------------------------------------------------------------------
Cash flows from operating
activities (before
changes in non-cash
working capital items) 32.5 15.4 111.0 70.8 39.7 78.3
------------------------------------------------------------------------
EBITDA 50.3 35.9 40.1 120.9 92.9 30.1
------------------------------------------------------------------------


Passenger traffic

For the third quarter of 2007, traffic at Aeroports de Montreal increased by 10.2% over the same period of 2006, to 3.4 million passengers. International traffic grew the most, at 14.5%, compared with a 13.8% rise in domestic traffic and a drop of 1.3% for the transborder sector. Traffic at Montreal-Trudeau was up by 9.0% for the first nine months of the year over the corresponding period a year earlier, to 9.5 million passengers.



Table - passenger traffic

------------------------------------------------------------------------
Passenger traffic - Montreal-Trudeau
------------------------------------------------------------------------
TOTAL Variance
------------------------------------------------------------------------
2007 2006
------------------------------------------------------------------------
January 995,550 903,252 10.2%
February 931,584 870,153 7.1%
March 1,085,390 997,014 8.9%
------------------------------------------------------------------------
1st quarter 3,012,524 2,770,419 8.7%
------------------------------------------------------------------------
April 997,887 917,030 8.8%
May 997,871 938,606 6.3%
June 1,086,312 999,814 8.7%
------------------------------------------------------------------------
2nd quarter 3,082,070 2,855,450 7.9%
------------------------------------------------------------------------
July 1,170,158 1,054,221 11.0%
August 1,206,892 1,091,206 10.6%
September 1,063,981 976,930 8.9%
------------------------------------------------------------------------
3rd quarter 3,441,031 3,122,357 10.2%
------------------------------------------------------------------------
Total as at September 30 9,535,625 8,748,226 9.0%
------------------------------------------------------------------------
Source: Aeroports de Montreal, preliminary figures


Aircraft movements

Aircraft movements at Aeroports de Montreal increased by 3.7% overall during the third quarter, reaching 65,091 compared to 62,794 in the third quarter of 2006. For the nine months ended September 30, 2007, total aircraft movements amounted to 184,486, representing an increase of 3,9% over the 177,495 movements registered in the same period last year.

Aeroports de Montreal is the local airport authority responsible for the management, operation and development of Montreal-Trudeau and Montreal-Mirabel international airports since 1992. The Corporation employs 600 individuals at two airport locations, namely Montreal-Trudeau and Montreal-Mirabel, as well as at head office.

For further details on Aeroports de Montreal and the Corporation's activities, consult our website at www.admtl.com.

Contact Information

  • Source:
    Christiane Beaulieu
    Vice President, Public Affairs
    514-394-7304