MONTREAL, Aug. 16, 2023 /CNW/ - ADM Aéroports de Montréal today announced its consolidated operating results for the six months ended June 30, 2023. These results are accompanied by passenger traffic data for YUL Montréal-Trudeau International Airport.
Highlights
- Passenger traffic at YUL totalled 5.3 million in the second quarter of 2023, up 32.9% compared with 2022 and representing 106.1% of the traffic for the corresponding period in 2019. Growth was sustained throughout the quarter, with 101.0% of 2019 traffic levels in April, 108.8% in May and reaching 107.9% in June. The international sector also showed a significant upturn, reaching 117.7% of 2019 traffic levels in the second quarter. For the first six months of 2023, passenger traffic stood at 9.8 million, up 57.6% over 2022.
- EBITDA (excess of revenues over expenses before financial expenses, income taxes, depreciation and impairment, and share of results of joint ventures; see "Non-GAAP Measures" section for more information) was $104.8 million for the second quarter under review, an increase of $22.9 million compared with EBITDA of $81.9 million for the same period in 2022. For the six months ended June 30, 2023, EBITDA totalled $193.5 million, an increase of $76.6 million over EBITDA of $116.9 million for the first six months of 2022.
- Capital investments, net of grants, were $90.7 million in the second quarter of 2023 compared with $40.2 million for the corresponding period of 2022, an increase of $50.5 million, or 125.7%. Capital investments for the six months ended June 30, 2023, amounted to $114.1 million ($56.2 million in 2022), an increase of $57.9 million, or 103.0%. For the six months under review, grants from the Airport Critical Infrastructure Program (ACIP) totalled $43.5 million ($16.3 million in 2022).
Quote
"Despite passenger traffic now exceeding 2019 levels and challenging weather conditions, airport operations at YUL Montréal-Trudeau International Airport are running more smoothly this summer season compared to the summer of 2022. ADM has worked hard over the past year, making significant investments in baggage handling and working with airlines and government agencies on airport processes. Of course, we'll continue to improve the way we do business to provide the best possible experience for our passengers during this busy season. In this regard, I would also like to thank the employees of the airport community for their excellent work in enabling millions of Quebecers and tourists to enjoy their holidays under conditions that are not always easy," said Philippe Rainville, President and CEO of ADM.
Financial results
Consolidated revenues were $203.6 million for the second quarter of 2023, an increase of $45.5 million, or 28.8%, over the corresponding period in 2022. For the first six months of 2023, revenues totalled $389.4 million, an increase of $128.5 million, or 49.2%, compared with the same six-month period in 2022. These positive results are directly attributable to the rebound in passenger traffic that is continuing in 2023.
Operating expenses for the quarter under review were $64.5 million, an increase of $15.6 million, or 31.7%, over the same quarter of 2022. For the six months ended June 30, 2023, operating expenses increased by $34.5 million, or 35.9%, from $95.9 million to $130.4 million. This variance in operating expenses is mainly due to higher operating expenses for passenger services as a result of the sustained recovery in business activity that is continuing in 2023.
Transfers to governments (payments in lieu of taxes to municipalities [PILT] and rent to Transport Canada) totalled $34.3 million for the quarter under review, up $7.0 million over the previous year, and represented 16.9% of ADM's revenues (17.3% in 2022). For the first six months of 2023, transfers amounted to $65.5 million, an increase of $17.4 million over the same six months of 2022, and represented 16.8% of ADM's total revenues (18.4% in 2022).
Depreciation and impairment of property and equipment and right-of-use assets rose slightly to $39.6 million for the second quarter of 2023, an increase of $0.8 million, or 1.8%, over the corresponding period of 2022. As at June 30, 2023, these expenses increased by $0.6 million, or 0.7%, to $78.6 million.
Net financial expenses totalled $24.3 million for the quarter under review, down $7.4 million, or 23.1%, from the same period in 2022. Cumulative net financial expenses at June 30, 2023 totalled $48.6 million compared with $63.3 million for 2022, a decrease of $14.7 million, or 23.1%. This variance is primarily due to higher interest income on surplus cash.
For the quarter ended June 30, 2023, the excess of revenues over expenses was $40.9 million compared with $11.3 million for the same quarter of 2022, an increase of $29.6 million, or 261.3%. As at June 30, 2023, the excess of revenues over expenses was $66.5 million, an increase of $90.8 million, or 373.9%, over the same period in 2022.
Financial situation
ADM's net debt at June 30, 2023 was $2.27 billion compared with $2.30 billion at December 31, 2022; see the "Non-GAAP Measures" section for more information.
Non-GAAP Measures
ADM sometimes presents financial measures that do not have a meaning prescribed by International Financial Reporting Standards ("IFRS"), referred to as non-GAAP measures. They are therefore unlikely to be comparable to similar measures presented by other companies.
EBITDA
EBITDA is defined by ADM as the excess of revenues over expenses before financial expenses, income taxes, depreciation and impairment and share in the results of joint ventures. It is used by management as an indicator to evaluate operational performance. EBITDA is meant to provide additional information and is not intended to replace other performance measures prepared under IFRS.
Net debt
Net debt is defined as the difference between the gross balance due on long-term debt, including lease liabilities, and the amount available in cash and cash equivalents as well as the debt service reserve fund.
Key financial measures
Second quarter |
Cumulative to June 30 |
|||||
(in millions of dollars) |
2023 |
2022 |
Variance |
2023 |
2022 |
Variance |
Revenues |
203.6 |
158.1 |
28.8 |
389.4 |
260.9 |
49.2 |
Operating costs |
64.5 |
48.9 |
31.7 |
130.4 |
95.9 |
35.9 |
Payments in lieu of taxes to municipalities (PILT) |
11.9 |
10.4 |
15.1 |
22.7 |
20.9 |
8.8 |
Transport Canada rent |
22.4 |
16.9 |
32.4 |
42.8 |
27.2 |
57.1 |
Depreciation and impairment of property and equipment and right-of-use assets |
39.6 |
38.8 |
1.8 |
78.6 |
78.0 |
0.7 |
Net financial expenses |
24.3 |
31.7 |
(23.1) |
48.6 |
63.3 |
(23.1) |
Total expenses |
162.7 |
146.7 |
10.9 |
323.1 |
285.3 |
13.2 |
Excess (deficiency) of revenues over expenses before share in the results of joint ventures and taxes |
40.9 |
11.4 |
260.0 |
66.3 |
(24.4) |
371.9 |
Share in the results of joint ventures |
0.1 |
0.2 |
(80.0) |
0.3 |
0.4 |
(34.3) |
Income taxes |
(0.1) |
(0.3) |
(68.0) |
(0.1) |
(0.3) |
(68.0) |
Excess (deficiency) of revenues over expenses |
40.9 |
11.3 |
261.3 |
66.5 |
(24.3) |
373.9 |
EBITDA |
104.8 |
81.9 |
78.6 |
193.5 |
116.9 |
65.5 |
(in billions of dollars) |
June 30 2023 |
December 31, |
Variance (%) |
Net debt |
2.27 |
2.30 |
(1.0) |
The % variances in the above tables are calculated with results in thousands. |
Capital investments
Investments at YUL and YMX were financed by operations and grants.
Second quarter |
Cumulative to June 30 |
|||||
(in millions of dollars) |
2023 |
2022 |
Variance |
2023 |
2022 |
Variance |
Airport program |
||||||
Work completed |
85.9 |
33.6 |
52.3 |
112.7 |
44.6 |
68.1 |
ACIP grants |
(17.8) |
- |
(17.8) |
(25.4) |
(0.1) |
(25.3) |
Subtotal airport program |
68.1 |
33.6 |
34.5 |
87.3 |
44.5 |
42.8 |
REM station |
||||||
Work completed |
24.2 |
12.7 |
11.5 |
44.9 |
27.9 |
17.0 |
ACIP grants |
(1.6) |
(6.1) |
4.5 |
(18.1) |
(16.2) |
(1.9) |
Subtotal REM station |
22.6 |
6.6 |
16.0 |
26.8 |
11.7 |
15.1 |
Total capital investments |
90.7 |
40.2 |
50.5 |
114.1 |
56.2 |
57.9 |
The % variances in the above tables are calculated with results in thousands. |
Passenger traffic
For the second quarter of 2023, traffic at YUL totalled 5.3 million passengers, up 32.9% compared with the same period in 2022. International traffic was up 39.3%, transborder (U.S.) saw growth of 41.9%, while domestic traffic rose by 20.1% compared with the second quarter of 2022.
For the quarter under review, passenger traffic at YUL reached 106.1% of the 2019 traffic level, i.e. 117.7% international, 107.7% transborder and 92.5% domestic.
Passenger traffic for the first six months of 2023 represented 101.5% of the corresponding period in 2019, with 111.6% for international, 100.9% for transborder and 89.8% for domestic.
Total passenger traffic*
Aéroports de Montréal |
|||||
2023 |
2022 |
Variance 2023 vs. 2022 |
2019 |
2023 as % |
|
January |
1,487.9 |
607.0 |
145.1 % |
1,532.2 |
97.1 % |
February |
1,380.5 |
623.2 |
121.5 % |
1,432.6 |
96.4 % |
March |
1,652.3 |
1,014.0 |
63.0 % |
1,712.6 |
96.5 % |
April |
1,584.2 |
1,132.3 |
39.9 % |
1,567.9 |
101.0 % |
May |
1,744.1 |
1,273.9 |
36.9 % |
1,603.2 |
108.8 % |
June |
1,985.2 |
1,591.2 |
24.8 % |
1,839.2 |
107.9 % |
Total |
9,834.2 |
6,241.5 |
57.6 % |
9,687.7 |
101.5 % |
Note: Total passenger traffic includes both revenue and non-revenue passengers and amounts are calculated with results in thousands. |
Source: Aéroports de Montréal |
Sustainability at ADM
During the quarter, ADM implemented the following initiatives to pursue its commitment to sustainability:
- Reduced greenhouse gas emissions associated with the transportation of construction materials for the Runway 06L-24R rehabilitation site by operating two concrete plants directly on the YUL site. This avoided approximately 250,000 kilometres of trucking, equivalent to 650 tonnes of CO2.
- Participated in a clean-up effort on the banks of the Bouchard Creek. ADM collected 397.6 kilograms of waste as part of the Allô Ruisseaux project. This project, carried out in partnership with the GRAME organization, aims to improve the health of waterways on the West Island of Montréal through clean-up operations, planting and awareness activities for citizens and businesses.
- Installed bee hives at the YUL and YMX sites. These hives, operated by the Poliflora cooperative, will produce approximately 60 kilograms of honey per site. Half of the harvest will be taken over by Poliflora for sale and distribution to local food banks. For its part, ADM will collect approximately 100 jars of honey from each of its sites to sell as part of its annual Centraide/United Way campaign.
To learn more about ADM's actions, visit our Sustainability Indicators platform or consult our 2022 Annual Report, which presents our Sustainability Report based on GRI (Global Reporting Initiative) standards.
About Aéroports de Montréal
ADM Aéroports de Montréal is the airport authority for the Greater Montréal area responsible for the management, operation and development of YUL Montréal-Trudeau International Airport, certified 4-stars under the Skytrax World Airport Star Rating program, and YMX International Aerocity of Mirabel.
SOURCE Aéroports de Montréal
Aéroports de Montréal, Public Affairs, [email protected], 514 394-7304
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