Aéroports de Montréal

Aéroports de Montréal

March 12, 2008 07:00 ET

Aeroports de Montreal Reports Its 2007 Results

- Passenger traffic up by 8.5% - Revenues increase by 12.4% - EBITDA rises by 21.0%

MONTREAL, QUEBEC--(Marketwire - March 12, 2008) - Aeroports de Montreal (ADM) announced today its audited consolidated financial results for the year ended December 31, 2007. 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 and write-off of investments at equity value) totalled $141.7 million for the year, an increase of $24.6 million, or 21.0%, over 2006.

On October 16, 2007, ADM issued a new series of revenue bonds. The issue, privately placed with Canadian financial Institutions, consists of $300 million in bonds. Net proceeds of the issue served to finance airport improvement programs. Moody's Investors Service Inc. and Dominion Bond Rating Service respectively ranked this bond issue A1 and A (high).

During 2007, the Corporation continued work on its various capital investment programs, mainly at Montreal-Trudeau airport. Projects included modernization of the domestic jetty. In addition, work on the new transborder departures area and the hotel progressed up to the fourth floor.

The Corporation invested a total of $154.1 million during 2007, compared with $83.0 million in 2006. Investments in the airports were financed by cash flows from airport operations, including airport improvement fees ($83.1 million), and long-term debt ($71.0 million).

Results

Consolidated revenues were $320.7 million for 2007, an increase of $35.5 million, or 12.4%, over the previous year. The main contributor to this increase was the growth in passenger traffic, which generated an increase in aeronautical and commercial revenues as well as revenues from airport improvement fees.

Operating costs (excluding payments in lieu of taxes) were $116.2 million for the year, up $10.5 million, or 9.9%, compared to 2006. This variance is due to the normal increase in payroll and the rise in certain operating costs, including costs for increased security and initiatives undertaken to enhance customer service.

Payments in lieu of taxes (PILT) were $32.9 million in 2007, a decrease of $1.2 million, or 3.5%, from the previous year. This decrease is attributable to a reduction in taxation rates, partly offset by the rise in the property valuation of airport facilities.

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 $141.7 million for the year under review, against $117.1 million for 2006, an improvement of $24.6 million, or 21.0%.

Amortization was $76.7 million in 2007, an increase of $4.6 million, or 6.4%, over the prior year.

Interest on long-term bonds totalled $69.4 million for the year, up $0.5 million, or 0.7%, over 2006.

The Corporation recorded a write-down of $8.8 million of its investments in non-bank sponsored asset-backed commercial papers (ABCPs), the equivalent of 15% of the cost of these securities as at December 31, 2007. This provision is based on a certain number of assumptions concerning the fair value of ABCPs, including scenarios of estimated cash-flows and observable market rates adjusted for risk, net of restructuring costs. In light of the circumstances that led to the ABCP crisis, the Corporation is currently examining all available options, including the right to take legal action, in order to obtain a full reimbursement of its investments in these assets and accrued interest.

Financial highlights:



For the year ended December 31
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(in millions of dollars) 2007 2006 Variance
(%)
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Revenues 320.7 285.2 12.4
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Operating costs (excluding PILT) 116.2 105.7 9.9
Payments in lieu of taxes (PILT) 32.9 34.1 (3.5)
Rent paid to Transport Canada 21.6 21.8 (0.9)
Amortization 76.7 72.1 6.4
Interest on long-term bonds 69.4 68.9 0.7
Write-down of investments 8.8 0.0 100.0
---------------------------------------------------------------------------
Total expenses 325.6 302.6 7.6
---------------------------------------------------------------------------
Excess (shortfall) of revenues
over expenses (before share
in and write-off of investments
at equity value) (4.9) (17.4) (71.8)
---------------------------------------------------------------------------
Share in and write-off
of investments at equity value (20.0) 36.6 (154.6)
---------------------------------------------------------------------------
Excess (shortfall)
of revenues over expenses (24.9) 19.2 (229.7)
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Cash flows from operating activities
(before changes in non-cash
working capital items) 83.1 45.3 83.4
---------------------------------------------------------------------------
EBITDA (before write-down of investments) 141.7 117.1 21.0
---------------------------------------------------------------------------
Certain comparative figures provided for 2006 have been reclassified to
conform to the current year's presentation.


Passenger traffic

Passenger traffic at Montreal-Trudeau increased by 8.5% in 2007, setting a new record of 12.4 million passengers enplaned/deplaned. International traffic showed the greatest increase at 13.0%, while the domestic and transborder sectors recorded increases of 9.8% and 1.2% respectively.



Table - Passenger traffic
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Montreal-Trudeau Variance
2007 2006 %
--------------------------------------------------------------------------
January 994,729 903,252 10.1
February 932,156 870,153 7.1
March 1,085,885 997,014 8.9
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1st quarter 3,012,770 2,770,419 8.7
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April 1,000,861 917,030 9.1
May 1,001,330 938,606 6.7
June 1,087,810 999,814 8.8
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2nd quarter 3,090,001 2,855,450 8.2
--------------------------------------------------------------------------
July 1,172,531 1,054,239 11.2
August 1,214,197 1 091,289 11.3
September 1,073,572 976,975 9.9
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3rd quarter 3,460,300 3,122,503 10.8
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October 1,017,544 940,335 8.2
November 874,440 824,021 6.1
December 952,879 919,522 3.6
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4th quarter 2,844,863 2,683,878 6.0
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Entire year 12,407,934 11,432,250 8.5
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Source: Aeroports de Montreal, preliminary figures


Aircraft movements

Total aircraft movements at Aeroports de Montreal rose by 1.5% in the fourth quarter of 2007, to 58,764 from 57,898 for the same period of 2006. There were 243,250 aircraft movements for the year ended December 31, 2007, a 3.3% increase over the 235,393 figure for the prior year.

About Aeroports de Montreal

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 600 individuals at two airports locations 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

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