Aéroports de Montréal

Aéroports de Montréal

August 06, 2008 09:04 ET

Aeroports de Montreal Publishes its Results for the Second Quarter of 2008

MONTREAL, QUEBEC--(Marketwire - Aug. 6, 2008) - Aeroports de Montreal (ADM) today announced its consolidated financial results for the three- and six-month periods ended June 30 2008. These results are accompanied by data on passenger traffic and aircraft movements at Montreal-Trudeau and Montreal-Mirabel international airports.

Highlights

EBITDA (excess of revenues over expenses before interest, income taxes, amortization and write-down of investments) totalled $43.1 million for the second quarter and $86.4 million for the half-year, increases of $6.8 million, or 18.7%, and $17.1 million, or 24.7%, respectively over the corresponding periods of 2007.

The Corporation continued work on its various capital investment programs, mainly at Montreal-Trudeau airport. Work focused mainly on construction of the new transborder departures area.

The Corporation invested a total of $55.6 million during the second quarter of 2008, and $83.1 million for the six months. Investments in the airports were financed by cash flows from airport operations ($24.4 million for the quarter and $51.2 million for the first half of the year), including airport improvement fees (AIFs), and by long-term debt ($31.2 million for the second quarter and $31.9 million for the half-year).

Results

Consolidated revenues were $88.5 million for the second quarter of 2008, an increase of $9.1 million, or 11.5%, over the same period in 2007. Cumulative revenues as at June 30 2008 were up by $24.8 million, a 15.9% rise over the half-year figure for 2007. This increase is mainly attributable to increased aeronautical fees and AIFs, as well as to growth in passenger traffic.

Operating costs (excluding municipal taxes) for the second quarter amounted to $28.8 million, an increase of $0.5 million, or 1.8%, over the comparable period in 2007. For the six-month period ended June 30 2008 operating costs increased by 8.6%, from $56.1 million in 2007 to $60.9 million in 2008. This variance is due to the increase in payroll and pension costs, as well as various initiatives to enhance customer service at Montreal-Trudeau airport. In addition, some operating costs increased, including expenditures related to the use and maintenance of facilities and equipment following the copious snowfalls during the first quarter of 2008. These unfavourable variances were, however, offset by compensation received following the settlement of a legal dispute with a supplier.

Like many other companies, ADM considers EBITDA to be the best indicator for judging the Corporation's financial performance and ability to meet its financial obligations. The Corporation reported EBITDA of $43.1 million for the quarter under review and $86.4 million for the first half-year of 2008, increases of $6.8 million, or 18.7%, and $17.1 million, or 24.7%, compared with the corresponding periods in 2007.

Interest on bonds totalled $19.7 million for the second quarter and $39.7 million for the first six months, up $3.2 million, or 19.4%, and $6.3 million, or 18.9%, respectively over the same periods in 2007. This is due to an increase in debt following the October 2007 issuance of the $300-million series of revenue bonds needed to meet capital requirements forecast in the Corporation's development strategy.

On the basis of information available at June 30, the Corporation recorded an additional $5.7 million provision as a write-down of investments held in asset-backed commercial paper (ABCP) for the second quarter of 2008. The cumulative provision for these investments stands at $14.6 million, or 25% of the original cost. This write-down is based on a certain number of assumptions concerning the fair value of ABCP, including scenarios of estimated cash flows and observable market rates adjusted for risk, net of restructuring costs. While Management believes that its valuation technique is appropriate in the circumstances, changes in key assumptions could significantly affect the value of ABCP in the coming quarters.

The quarter ended June 30 2008, generated an excess of revenues over expenses of $2.6 million, compared to $2.3 million for the same period in 2007. For the half-year ended June 30 2008, the excess of revenues over expenses amounted to $11.0 million, compared to $2.4 million for the same period in 2007. Without the additional provision recorded for the ABCP investments, the excess of revenues over expenses would have been $8.3 million for the quarter and $16.7 million for the half-year.



Financial highlights

--------------------------------------------------------------------------
For the six months
Second quarter ended June 30
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Variance Variance
(in millions of dollars) 2008 2007 (%) 2008 2007 (%)
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Revenues 88.5 79.4 11.5 181.2 156.4 15.9
Operating costs
(excluding PILT) 28.8 28.3 1.8 60.9 56.1 8.6
Payments in lieu
of taxes (PILT) 8.5 7.7 10.4 16.9 16.6 1.8
Rent paid to
Transport Canada 5.4 5.4 0.0 10.8 10.8 0.0
Amortization 17.8 19.2 (7.3) 36.2 37.1 (2.4)
Interest on
long-term bonds 19.7 16.5 19.4 39.7 33.4 18.9
Write-down for ABCP 5.7 0.0 100.0 5.7 0.0 100.0
Total expenses 85.9 77.1 11.4 170.2 154.0 10.5
Excess (shortfall)
of revenues
over expenses 2.6 2.3 13.0 11.0 2.4 358.3
Cash flows from
operating activities
(before changes in
non-cash working
capital items) 24.4 19.2 27.1 51.2 37.7 35.8
EBITDA 43.1 36.3 18.7 86.4 69.3 24.7
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Passenger traffic

Passenger traffic at Montreal-Trudeau increased by 0.4% in the second quarter of 2008 over the same period in 2007, with a total of 3.1 million passengers. International and domestic traffic grew by 3.5% and 0.6 % respectively, while transborder traffic declined by 4.0% because of the economic slowdown in the United States. For the first six months of 2008 traffic at Montreal-Trudeau totalled 6.3 million passengers, a rise of 2.8% over the corresponding period in 2007.



Table - Passenger traffic

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Aeroports de Montreal
2008 2007 Variation
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January 1,035,399 992,499 4.3%
February 1,023,921 932,156 9.8%
March 1,110,204 1,085,885 2.2%
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1st quarter 3,169,524 3,010,540 5.3%
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April 1,032,167 1,000,861 3.1%
May 1,015,104 1,001,330 1.4%
June 1,054,345 1,087,186 (3.0%)
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2nd quarter 3,101,616 3,089,377 0.4%
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Total as at June 30 6,271,140 6,099,917 2.8%
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Source: Aeroports de Montreal, preliminary figures


Aircraft movements

Aircraft movements at both Aeroports de Montreal facilities combined increased by 3.2% in the second quarter of 2008, reaching 64,244 movements, compared with 62,236 for the corresponding period a year ago. Among other things, some carriers used smaller and more economical aircraft in order to maintain their flight frequencies. There were 123,007 aircraft movements during the first six months of 2008, a 3.0% increase over the 119,395 figure for the first half-year of 2007.

ADM 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 a total of some 600 people at both airports and at head office.

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

Contact Information

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