Aéroports de Montréal

Aéroports de Montréal

October 26, 2006 10:59 ET

Aeroports de Montreal Announces its Third Quarter Results: EBITDA Up by More Than 15%

MONTREAL, QUEBEC--(CCNMatthews - Oct. 26, 2006) - Aeroports de Montreal (ADM) announces its consolidated financial results today for the three- and nine-month periods ended September 30, 2006. 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 share in the net loss of investments at equity value) reached $35.9 million for the third quarter and $92.9 million for the nine-month period, increases of $4.8 million or 15.4% and $12.2 million or 15.1%, respectively, over the same periods of 2005.

During the third quarter of 2006, the Corporation continued work on its various capital investment programs, mainly at Montreal-Trudeau. Work focused primarily on modernization of the domestic jetty and expansion of the domestic arrivals hall, as well as on construction of return corridors for gates 49 to 52. In addition, excavation and foundation work progressed for the future transborder departures area and hotel.

The Corporation invested a total of $25.2 million during the third quarter of 2006 and $51.3 million for the nine-month period. Investments in the airports are fully financed by cash flows from airport operations, including airport improvement fees ($15.4 million for the quarter and $39.7 million for the nine months), and by long-term debt ($9.8 million for the quarter and $11.6 million for the nine months).

Earlier this month, the International Centre for Settlement of Investment Disputes (ICSID) rendered its decision in the case of the illegal expropriation of Budapest-Ferihegy International Airport on January 1, 2002. ADM holds an interest in the two companies that had invested in this airport and that were operating it at the time of the expropriation. The decision in favour of ADM and its partners also concluded that they should be compensated.

Results

Consolidated revenues were $74.1 million for the third quarter of 2006, an increase of $7.4 million, or 11.1%, over the corresponding period of 2005. In addition, cumulative revenues for the year as at September 30, 2006, rose by $23.4 million, to reach $214 million. Aeronautical and commercial revenues were the main contributors to this increase.

Operating costs (excluding municipal taxes) were $23.5 million for the third quarter, up $1.4 million or 6.3%, from the same period of 2005. For the nine-month period ended September 30, operating costs rose by 5.2%, from $71.7 million in 2005 to $75.4 million this year. This variance is partly due to the normal increase in operating costs following the June 2005 start-up of the new international jetty at Montreal-Trudeau, as well as by the annual increase in payroll costs.

Municipal taxes were $26.0 million for the period ended September 30, 2006, compared with $23.2 million for the same prior-year period, an increase of 12.1% . This increase is attributable to Montreal-Trudeau's higher property valuation following the start-up of the new facilities as a part of the airport expansion program. ADM is the most-taxed Canadian airport authority, paying up to four times more per passenger than the other major Canadian airports.

Like many other companies, ADM considers EBITDA to be the best indicator for judging the Corporation's ability to meet its financial obligations. The Corporation reported EBITDA of $35.9 million for the quarter under review and $92.9 million for the nine-month period, an increase of $4.8 million or 15.4% and $12.2 million or 15.1%, respectively, over the same periods of 2005.

Amortization was $17.7 million for the third quarter and $53.0 million for the nine months, representing increases of $0.6 million or 3.5% and $6.7 million or 14.5% over the corresponding periods of 2005. These increases are due to the start-up of several new facilities at Montreal-Trudeau, including the international jetty (June 2005) and the public international arrivals hall (December 2005).

Interest on long-term bonds was $17.2 million for the period under review, up $3.6 million or 26.5% over the same period in 2005. For the nine-month period ended September 30, 2006, interest on long-term bonds was up by $17.8 million or 52.4% from $34.0 million in 2005 to $51.8 million in 2006. This difference reflects the variance in the amount of capitalized interest on construction in progress, as well as the issuance of a new series of revenue bonds in September 2005.

The Corporation reported an excess of revenues over expenses of $2.0 million for the third quarter ended September 30, 2006, compared with a shortfall of $0.7 million for the corresponding quarter a year earlier. For the nine-month period ended September 30, the shortfall of revenues over expenses was $9.8 million, compared with a $1.6 -million shortfall for the same period of 2005. The increase in the shortfall is due to higher amortization expense and interest on long-term bonds, partly offset by the increase in EBITDA.



Financial highlights:
-------------------------------------------------------------------------
Third quarter 2006 Cumulative as at
September 30, 2006
-------------------------------------------------------------------------
(in millions de dollars)
2006 2005 Variance 2006 2005 Variance
(%) (%)
-------------------------------------------------------------------------
Revenues 74.1 66.7 11.1 214.0 190.6 12.3
-------------------------------------------------------------------------
Operating costs
(excluding
municipal taxes) 23.5 22.1 6.3 75.4 71.7 5.2

Municipal taxes 8.3 9.0 (7.8) 26.0 23.2 12.1

Rent paid to Transport 5.4 4.6 17.4 16.4 16.0 2.5
Canada

Amortization 17.7 17.1 3.5 53.0 46.3 14.5

Interest on
long-term bonds 17.2 13.6 26.5 51.8 34.0 52.4

Share in the net loss
of investments at
equity value --- 1.0 (100.0) 1.2 1.0 20.0
-------------------------------------------------------------------------
Total expenses 72.1 67.4 7.0 223.8 192.2 16.4
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Excess (shortfall) of
revenues over expenses 2.0 (0.7) 385.7 (9.8) (1.6) (512.5)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Cash flows from
operating activities
(before changes
in non-cash working
capital items) 15.4 16.9 (8.9) 39.7 45.4 (12.6)
-------------------------------------------------------------------------
EBITDA 35.9 31.1 15.4 92.9 80.7 15.1
-------------------------------------------------------------------------


Passenger traffic

Passenger traffic at Montreal-Trudeau increased by 2.5% in the third quarter of 2006 compared with the corresponding period of 2005, to a total of 3.1 million passengers. The international sector showed the greatest increase at 4.2%, compared with 1.8% and 1.6% for the transborder and domestic sectors respectively. For the nine-month period, traffic at Montreal-Trudeau reached 8.7 million passengers, a 4.0% increase over the same period last year.



Table -- passenger traffic
-------------------------------------------------------------
-------------------------------------------------------------
Aeroports de Montreal
2006 2005 Variance
-------------------------------------------------------------
January 903,352 895,265 0.9%
February 870,153 854,276 1.9%
March 997,014 930,222 7.2%
-------------------------------------------------------------
1st quarter 2,770,519 2,679,763 3.4%
-------------------------------------------------------------
April 916,582 860,345 6.5%
May 938,606 866,926 8.3%
June 999,814 957,146 4.5%
-------------------------------------------------------------
2nd quarter 2,855,002 2,684,417 6.4%
-------------------------------------------------------------
July 1,063,173 1,042,952 1.9%
August 1,090,839 1,054,465 3.4%
September 973,166 952,257 2.2%
-------------------------------------------------------------
-------------------------------------------------------------
3rd quarter 3,127,178 3,049,674 2.5%
Total as at September 30 8,752,699 8,413,854 4.0%
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Source: Aeroports de Montreal, preliminary figures

Aircraft movements

The number of aircraft movements at Aeroports de Montreal showed overall
increases of 1.3% and 1.3% for the three- and nine-month periods ended
September 30, 2006, compared with the same periods of 2005. Montreal-
Trudeau posted increases of 2.1% for the quarter and 2.2% for the nine
months.

Table -- aircraft movements
------------------------------------------------------------------------
3rd 3rd Variance Nine Nine Variance
quarter quarter % months months %
2006 2005 2006 2005
------------------------------------------------------------------------
Montreal-Trudeau 57,257 56,082 2.1 160,532 157,097 2.2
------------------------------------------------------------------------
Montreal-Mirabel 5,537 5,931 (6.6) 16,963 18,045 (6.0)
------------------------------------------------------------------------
Aeroports de Montreal 62,794 62,013 1.3 177,495 175,142 1.3
------------------------------------------------------------------------
Source: Aeroports de Montreal, preliminary figures


ADM is the local airport authority responsible for the management, operation and development of Montreal-Trudeau and Montreal-Mirabel international airports under the terms of a lease entered into with Transport Canada in 1992. The Corporation employs a total of some 600 persons at the two airports and head office.

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

Contact Information

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