Aéroports de Montréal

Aéroports de Montréal

May 08, 2008 11:00 ET

Aeroports de Montreal Posts Strong Results for the First Quarter of 2008

- EBITDA rises 30.9% - Revenues up by 20.3% - Passenger traffic increases by 5.6%

MONTREAL, QUEBEC--(Marketwire - May 8, 2008) -

Editors Note: A photo for this release will be available via Marketwire on the picture wire of The Canadian Press

Aeroports de Montreal (ADM) today announced its consolidated financial results for the first quarter of 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 share of investments at equity value) totalled $43.2 million for the first quarter, an increase of $10.2 million, or 30.9%, over the corresponding period of 2007.

During the quarter, 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 $27.5 million during the opening quarter of the year. Investments in the airports were financed by cash flows from airport operations ($26.7 million), including airport improvement fees (AIFs), and by long-term debt ($0.8 million).

Results

Consolidated revenues were $92.6 million for the first quarter of 2008, an increase of $15.6 million, or 20.3%, over the year-ago period. The main contributor to this increase was the growth in aeronautical revenues and AIFs due to increased fees and passenger traffic. Revenues from concessions and interest income also contributed to this rise.

Operating costs (excluding municipal taxes) were $32.1 million for the quarter, up $4.4 million, or 15.9%, from the same 2007 period. This variance is due to the increase in payroll caused partly by higher wages and partly by increased passenger traffic at Montreal-Trudeau airport. In addition, certain operating costs increased, due in part to the copious snowfalls during the first quarter of 2008.

Municipal taxes, rent paid to Transport Canada and amortization remained stable compared to the first quarter of 2007.

Interest on bonds totalled $20.1 million for the quarter, up $3.2 million, or 18.9%, over the year-ago period. This increase is due to capital requirements forecast in the Corporation's development strategy and includes interest related to the issuance of a new series of revenue bonds on October 16, 2007.

Like many other companies, ADM considers EBITDA to be the best indicator for judging the Corporation's ability to meet its financial obligations. EBITDA was $43.2 million for the period under review, against $33.0 million for the corresponding quarter a year ago, an improvement of $10.2 million, or 30.9%.

The Corporation reported an excess of revenues over expenses of $8.4 million for the quarter ended March 31, 2008, compared with an excess of $0.1 million for the year-earlier quarter. This favourable variance of $8.3 million is attributable to increases in the main revenue categories, which were somewhat offset, however, by the higher operating costs and interest on long-term bonds.



Financial highlights:

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First quarter
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(in millions of dollars) 2008 2007 Variance
(%)
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Revenues 92.6 77.0 20.3
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Operating costs (excluding PILT) 32.1 27.7 15.9
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Payments in lieu of taxes (PILT) 8.4 8.9 (5.6)
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Rent paid to Transport Canada 5.4 5.4 0.0
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Amortization 18.2 18.0 1.1
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Interest on long-term bonds 20.1 16.9 18.9
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Total expenses 84.2 76.9 9.5
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Excess of revenues over expenses 8.4 0.1 8,300.0
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Cash flows from operating activities
(before changes in non-cash working
capital items) 26.7 18.5 44.3
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EBITDA 43.2 33.0 30.9
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Passenger traffic

Passenger traffic at Montreal-Trudeau increased by 5.6% in the first quarter of 2008 over the same period of 2007. International traffic rose by 11.6%, while domestic and transborder traffic climbed by 2.1% and 2.4% respectively. The harsh winter caused a great many flight cancellations, especially in March.



Table - Passenger traffic (1st quarter)

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Aeroports de Montreal
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2008 2007 Variation
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January 1,035,154 992,499 4.3%
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February 1,024,046 932,156 9.9%
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March 1,119,535 1,085,885 3.1%
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Quarter 3,178,735 3,010,540 5.6%
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Source: Aeroports de Montreal, preliminary figures


Aircraft movements

There were a total of 58,763 aircraft movements at the two airports in the first quarter of 2008, representing a 2.8% increase over the opening quarter of 2007.

About Aeroports de Montreal

Aeroports de Montreal 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 signed with Transport Canada in 1992. The Corporation employs a total of some 600 persons at both airports and at head office.

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

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Contact Information

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