Aéroports de Montréal

Aéroports de Montréal

March 05, 2009 08:42 ET

Aeroports de Montreal Reports its 2008 Results

- Passenger traffic stable at 12.4 million - Revenues increase by 12.9% - EBITDA rises by 22.2%

MONTREAL, QUEBEC--(Marketwire - March 5, 2009) - Aeroports de Montreal today announced its audited consolidated financial results for the year ended December 31, 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, taxes, amortization and write-down of other investments) totalled $173.1 million for the year, an increase of $31.4 million, or 22.2%, over the previous year.

During 2008, the Corporation continued work on its various capital investment programs, mainly at Montreal-Trudeau airport. Projects included the construction of a new transborder departures area and the modernization of the aeroquay.

The Corporation invested a total of $234.9 million in 2008 compared with $154.1 million in 2007. Investments in the airports were financed by cash flows from airport operations, including airport improvement fees ($100.9 million), and long-term debt ($134.0 million).

Results

Consolidated revenues were $362.2 million for 2008, an increase of $41.5 million, or 12.9%, over the previous year. This rise is mainly attributable to increased aeronautical fees and AIFs.

Operating costs (excluding municipal taxes) for the year under review reached $123.2 million, up $7.0 million, or 6.0%, compared with the previous year. 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 heavy snowfalls during 2008. These negative variances were, however, offset by compensation received following the settlement of a dispute with a supplier.

Municipal taxes amounted to $34.2 million for 2008, up $1.3 million or 4.0% from the previous year. The increase is attributable to a rise in the property valuation of Montreal-Trudeau following the startup of new facilities.

Like many other companies, Aeroports de Montreal considers EBITDA to be the best indicator for judging its financial performance and its ability to meet its financial obligations. EBITDA was $173.1 million for the year under review, compared with $141.7 million in 2007, an increase of $31.4 million or 22.2%.

Amortization was $72.3 million in 2008, a decrease of $4.4 million, or 5.7%, over the prior year. This decrease is primarily attributable to the disposal of certain assets in 2007.

Financial expenses amounted to $77.9 million for the year under review, an increase of $8.5 million, or 12.2%, over the previous year. This difference reflects the variance in the amount of capitalized interest on work in progress as well as the issuance of a new series of revenue bonds in October 2007.

During 2008, the Corporation recorded an additional write-down of $17.1 million on asset-backed commercial paper (ABCP) investments. Management determined the fair value of ABCP by taking into account information available during 2008, the changes in the credit market and the ultimate implementation of the restructuring plan on January 21, 2009. The cumulative impairment allowance for ABCP totalled $25.9 million as at December 31, 2008, 44.5% of their initial value or 48.6% excluding related interest.

The year ended December 31, 2008 generated an excess of revenues over expenses of $15.9 million, compared with a shortfall of $4.9 million (before share-in and write-off of investments at equity value) for 2007. Were it not for the additional write-down of ABCP investments, the excess of revenues over expenses would have been $33.0 million for 2008.



Financial highlights

For the year ended December 31:
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Variance
(in millions of dollars) 2008 2007 (%)
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Revenues 362.2 320.7 12.9
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Operating costs (excluding PILT) 123.2 116.2 6.0
Payments in lieu of taxes (PILT) 34.2 32.9 4.0
Rent paid to Transport Canada 21.6 21.6 -
Amortization 72.3 76.7 (5.7)
Financial expenses 77.9 69.4 12.2
Write-down of other investments 17.1 8.8 94.3
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Total expenses 346.3 325.6 6.4
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Excess (shortfall) of revenues over
expenses (before
share-in and write-off of
investments at equity value) 15.9 (4.9) (424.5)
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Share-in and write-off of
investments at equity value - (20.0) (100.0)
Excess (shortfall) of revenues over
expenses 15.9 (24.9) (163.9)
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Cash flows from operating
activities (before changes in
non-cash working capital items) 100.9 83.1 21.4
EBITDA (before write-down of other
investments) 173.1 141.7 22.2
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Passenger traffic

Passenger traffic at Montreal-Trudeau totalled 12.4 million for the year under review, a decrease of approximately 19,000 passengers, or 0.2%, compared with 2007. International traffic, which accounts for slightly more than a third of total traffic (36%), recorded the best performance with a 5.3% increase over the previous year. Increase in demand for resort destinations contributed to this sector's strong performance. The transborder and domestic sectors (24% and 40% of total traffic respectively) declined 3.7% and 2.5% respectively.



Table - Passenger traffic
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Montreal-Trudeau
Variance
2008 2007 %
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January 1,035,924 992,499 4.4%
February 1,025,394 932,156 10.0%
March 1,116,068 1,085,885 2.8%
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1st quarter 3,177,386 3,010,540 5.5%
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April 1,032,102 1,000,861 3.1%
May 1,015,553 1,001,330 1.4%
June 1,057,855 1,087,186 (2.7%)
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2nd quarter 3,105,510 3,089,377 0.5%
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July 1,147,951 1,172,035 (2.1%)
August 1,204,204 1,214,948 (0.9%)
September 1,019,248 1,074,198 (5.1%)
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3rd quarter 3,371,403 3,461,181 (2.6%)
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October 978,652 1,019,463 (4.0%)
November 833,728 874,618 (4.7%)
December 922,038 952,556 (3.2%)
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4th quarter 2,734,418 2,846,637 (3.9%)
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Entire year 12,388,717 12,407,735 (0.2%)
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Source: Aeroports de Montreal, preliminary figures


Aircraft movements

Total aircraft movements at Aeroports de Montreal reached 245,232 in 2008, an increase of 0.8% compared with 2007. Montreal-Trudeau recorded 225,452 movements in 2008, up 1.1% over 2007. Aircraft movements at Montreal-Mirabel totalled 19,780, down 1.9% from the previous year.

Aeroports de Montreal is the local airport authority that has been 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 persons at both airports and at head office.

For more information about Aeroports de Montreal and its operations, see our website, www.admtl.com.

Contact Information

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