ADM ANNOUNCES FINANCIAL RESULTS AT DECEMBER 31, 2023
MONTRÉAL, March 26, 2024 /CNW/ - ADM Aéroports de Montréal today announced its consolidated operating results for the year ended December 31, 2023. These results are accompanied by passenger traffic data for YUL Montréal-Trudeau International Airport.
- Passenger traffic at YUL totalled 5.0 million in the fourth quarter of 2023, up 14.9% from 2022, or 108.9% of the traffic in the corresponding period of 2019. Of particular note was the sustained growth of the transborder and international sectors, with fourth-quarter traffic levels of 108.6% and 125.1%, respectively, of 2019 levels. The domestic sector reached 91.6% of the 2019 traffic level for the same period. For 2023, passenger traffic stood at 21.2 million, up 32.5% from 2022.
- EBITDA (the excess of revenues over expenses before financial expenses, income taxes, depreciation and impairment and share of results of joint ventures, see the "Non-GAAP Measures" section for more information) was $437.9 million for fiscal 2023, an increase of $114.0 million over EBITDA of $323.9 million for the previous year.
- Capital investments were $326.9 million in 2023, compared with $143.4 million in 2022, an increase of $183.5 million, or 128.0%. Grants, primarily from the Airport Critical Infrastructure Program (ACIP), totalled $77.2 million, compared with $75.4 million in the previous year. Capital investments (net of grants) totalled $249.7 million ($68 million in 2022).
"The year 2023 ended with YUL Montréal-Trudeau International Airport surpassing its pre-pandemic results and recording the strongest growth of any major Canadian airport by welcoming 21.2 million passengers for the first time ever in its facilities. With 36 airlines now operating at YUL and 157 destinations available to travellers, it's clear that our airport has fully resumed its role as a major hub for international air travel," said Yves Beauchamp, President and CEO of ADM. "We are delighted to welcome such a large number of passengers to YUL and to offer them so many opportunities to connect with the four corners of the globe. This record traffic has prompted us to pick up the pace and quickly implement improvements to accessing the airport and thereby enhance the passenger experience. To this end, we recently inaugurated a new multi-level parking facility at the airport. This is the first step in a much wider redevelopment plan for the area, which our teams are hard at work on and which will be unveiled in the coming days. The program will enable YUL to accommodate the growth expected over the coming years."
Consolidated revenues were $847.9 million in 2023, an increase of $195.8 million, or 30.0%, over 2022. This increase is mainly due to the significant growth in passenger traffic and the increase in air movements.
Operating expenses for the year totalled $272.8 million, an increase of $58.6 million, or 27.3%, over the previous year. This variance can be explained by the increase in the total number of employees and by higher operating costs related to measures taken in response to increased traffic, particularly during peak periods, to ensure a smooth flow of passengers from their arrival at the airport to boarding, including the cost of operating parking lots for a full year.
Transfers to governments (payments in lieu of taxes to municipalities [PILT] and rent to Transport Canada) totalled $137.2 million in 2023, an increase of $23.2 million over the previous year, and represented 16.2% of ADM's revenues (17.5% in 2022).
Depreciation and impairment of property and equipment and right-of-use assets were $211.6 million for 2023, an increase of $51.2 million, or 31.9%, compared to 2022. This increase is mainly due to the revaluation of certain assets as a result of the new orientations with regards to the program to improve access to YUL.
Net financial expenses totalled $93.3 million in 2023, down $25.8 million, or 21.6%, compared with 2022. This variance is due to an increase in our interest income, resulting from greater liquidity surpluses combined with higher interest rates.
As at December 31, 2023, the excess of revenues over expenses was $132.9 million, compared with $45.3 million in 2022, an increase of $87.6 million, or 193.2%.
ADM's net debt as at December 31, 2023 was $2.2 billion, compared with $2.3 billion as at December 31, 2022; see the "Non-GAAP Measures" section for more information. Moody's and DBRS have respectively assigned credit ratings of A1, Stable and A (high), Stable to the Corporation's long-term bonds.
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 expense, income taxes, depreciation and impairment and share in the results of joint ventures. It is used by management as an indicator to evaluate operating 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.
Financial results
Cumulative as at December 31 | |||
(in millions of dollars) | 2023 | 2022 | Variance (%) |
Revenues | 847.9 | 652.1 | 30.0 |
Operating costs | 272.8 | 214.2 | 27.3 |
Payments in lieu of taxes to municipalities (PILT) | 44.9 | 45.7 | (1.7) |
Transport Canada rent | 92.3 | 68.3 | 35.1 |
Depreciation of property and equipment and right-of-use assets | 211.6 | 160.4 | 31.9 |
Net financial expenses | 93.3 | 119.1 | (21.6) |
Total expenses | 714.9 | 607.7 | 17.6 |
Excess of revenues over expenses before share in the results of joint ventures and income taxes | 133.0 | 44.4 | 199.6 |
Share in the results of joint ventures | 0.6 | 0.8 | (16.9) |
Income taxes | (0.7) | 0.1 | (549.4) |
Excess of revenues over expenses | 132.9 | 45.3 | 193.2 |
EBITDA | 437.9 | 323.9 | 35.2 |
The % variance in the above table are calculated with results in thousands.
Investments at YUL and YMX were financed by operations and grants.
Cumulative as at December 31 | |||
(in millions of dollars) | 2023 | 2022 | Variance (%) |
Airport Program | |||
Work completed | 240.5 | 88.3 | 172.4 |
Grants | (32.5) | (32.6) | (0.4) |
Sub-total Airport Program | 208.0 | 55.7 | 273.7 |
REM Station | |||
Work completed | 86.4 | 55.1 | 56.8 |
Grants | (44.7) | (42.8) | 4.5 |
Subtotal REM Station | 41.7 | 12.3 | 239.1 |
Total capital investments | 249.7 | 68.0 | 267.4 |
December 31, 2023 | December 31, 2022 | Variance (%) |
2.2 | 2.3 | (5.8) |
The % variance in the above tables are calculated with results in thousands. |
For the fourth quarter of 2023, traffic at YUL totalled 5.0 million passengers, a 14.9% increase over the same period in 2022. International traffic was up 21.0%, transborder (U.S.) traffic increased by 15.5%, and domestic traffic climbed by 6.7% compared with the fourth quarter of 2022.
In the fourth quarter, passenger traffic at YUL reached 108.9% of the 2019 traffic level, consisting of. 125.1% international, 108.6% transborder and 91.6% domestic.
Passenger traffic in 2023 represented 104.3% of the traffic recorded in 2019, with. 114.6% for international, 104.7% for transborder and 91.7% for domestic.
Aéroports de Montréal | |||||
2023 | 2022 | Variance 2023 vs. 2022 | 2019 | 2023 as % | |
January | 1,489.0 | 607.0 | 145.3 % | 1,532.2 | 97.2 % |
February | 1,378.5 | 623.2 | 121.2 % | 1,432.6 | 96.2 % |
March | 1,651.9 | 1,014.0 | 62.9 % | 1,712.6 | 96.5 % |
April | 1,581.4 | 1,132.3 | 39.7 % | 1,567.9 | 100.9 % |
May | 1,741.1 | 1,273.9 | 36.7 % | 1,603.2 | 108.6 % |
June | 1,973.3 | 1,591.2 | 24.0 % | 1,839.2 | 107.3 % |
July | 2,218.5 | 1,886.3 | 17.6 % | 2,098.0 | 105.7 % |
August | 2,237.5 | 1,881.5 | 18.9 % | 2,146.8 | 104.2 % |
September | 1,924.0 | 1,639.9 | 17.3 % | 1,801.9 | 106.8 % |
October | 1,775.9 | 1,539.2 | 15.4 % | 1,624.4 | 109.3 % |
November | 1,501.4 | 1,314.1 | 14.3 % | 1,364.2 | 110.1 % |
December | 1,701.4 | 1,478.2 | 15.1 % | 1,583.4 | 107.5 % |
Total | 21,173.9 | 15,980.7 | 32.5 % | 20,306.5 | 104.3 % |
Note: Total passenger traffic includes both revenue and non-revenue passengers and is calculated with results in thousands.
Source: Aéroports de Montréal
During the quarter, ADM implemented the following initiatives to pursue its commitment to sustainability:
- Unveiled its roadmap for achieving the targets it has set itself and which are detailed in its Sustainability Plan 1.0, via a video capsule presenting ADM's various initiatives and objectives to reduce its emissions by 86% by 2030 and become net zero emissions (ZEN) by 2040.
- Joined the Net-Zero Challenge of the Ministry of the Environment and Climate Change thanks to the targets and objectives of this same roadmap. ADM is now one of 130 companies participating in the Net-Zero Challenge, which encourages companies to develop and implement credible and effective plans to make their facilities and activities carbon neutral by 2050.
- Enhanced the greening of its cityside facilities at YUL by planting 91 trees and shrubs, a mix of species from different functional groups, with an emphasis on native species to promote biodiversity on the site. These plantings, carried out in collaboration with GRAME, also help to promote biodiversity and combat heat islands.
To learn more about ADM's actions, visit its Sustainability Indicators platform or consult its Sustainability Plan 1.0 and 2022 Annual Report, which presents its Sustainability Report based on GRI (Global Reporting Initiative) standards.
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
Source: Aéroports de Montréal, Public Affairs 514 394-7304, [email protected]
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