ADM ANNOUNCES FINANCIAL RESULTS AT SEPTEMBER 30, 2023
MONTREAL, Nov. 7, 2023 /CNW/ - ADM Aéroports de Montréal today announced its consolidated operating results for the period ending September 30, 2023. These results are accompanied by passenger traffic data for YUL Montréal-Trudeau International Airport.
Highlights
- Passenger traffic at YUL totalled 6.4 million in the third quarter of 2023, up 18.1% compared with 2022, or 105.6% of the traffic in the corresponding period of 2019. Growth was sustained throughout the quarter, reaching 106.0% of 2019 traffic levels in July, 104.1% in August and 106.9% in September. Of particular note is the marked increase in the international sector, with 112.3% of 2019 traffic levels in the third quarter. For the first nine months of 2023, passenger traffic stood at 16.2 million, up 39.2% from 2022.
- EBITDA (the excess of revenues over expenses before financial expenses, income taxes, depreciation and impairment and share of the results of joint ventures, see the "Non-GAAP Measures" section for more information) was $150.8 million for the third quarter under review, an increase of $42.7 million over EBITDA of $108.1 million for the same period in 2022. For the year-to-date period ended September 30, 2023, EBITDA was $344.3 million, an increase of $119.3 million over EBITDA of $225.0 million for the first nine months of 2022.
- Capital investments, net of subsidies, were $50.6 million in the third quarter of 2023, compared with $6.2 million for the corresponding period of 2022, an increase of $44.4 million, or 712.9%. Capital investments for the nine months ended September 30, 2023, amounted to $164.7 million ($62.4 million in 2022), an increase of $102.3 million, or 163.9%. For the first nine months of 2023, grants from the Airport Critical Infrastructure Program (ACIP) totalled $58.2 million ($41.3 million in 2022).
Quote
"Growth was again sustained throughout the quarter, with indicators continuing to exceed 2019 traffic levels. ADM Aéroports de Montréal is very pleased to have welcomed such a large number of passengers to YUL Montréal-Trudeau International Airport, which fully resumed its role as a major hub for international air traffic during the summer months. However, this record traffic also highlighted capacity challenges for our organization. Faced with this situation, our team is actively working with its partners to find short-term improvement solutions, particularly in terms of access to the airport site. As for the employees of the airport community, they continue to multiply their efforts to be there for passengers, and I would like to thank them for their excellent work," said Yves Beauchamp, President and CEO of ADM.
Financial results
Consolidated revenues were $253.1 million for the third quarter of 2023, an increase of $53.4 million, or 26.8%, from the corresponding period in 2022. For the first nine months of 2023, revenues totalled $642.5 million, an increase of $181.9 million, or 39.5%, compared with the same period in 2022. These positive results are directly linked to the upturn in passenger traffic that is continuing in 2023.
Operating expenses for the quarter under review were $64.3 million, an increase of $7.7 million, or 12.7%, over the same quarter in 2022. For the period ended September 30, 2023, operating expenses increased by $42.2 million, or 26.7%, from $152.5 million to $194.7 million. This variance in operating expenses is primarily due to higher operating costs 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 $38.0 million for the quarter under review, an increase of $3.0 million compared with the previous year, and represented 15.0% of ADM's revenues (17.5% in 2022). For the first nine months of 2023, these transfers amounted to $103.5 million, an increase of $20.4 million over the corresponding period of 2022, and represented 16.1% of ADM's total revenues (18.0% in 2022).
Depreciation and impairment of property and equipment and right-of-use assets decreased to $37.8 million for the third quarter of 2023, down by $2.6 million, or 6.4%, compared with the corresponding period of 2022. As at September 30, 2023, these expenses decreased by $2.0 million, or 1.7%, to $116.4 million. This change is mainly due to the end of amortization of certain assets.
Net financial expenses totalled $22.9 million for the three months ended September 30, 2023, down $7.0 million, or 23.4%, from the same period in 2022. Cumulative net financial expenses at September 30, 2023 totalled $71.5 million, compared with $93.2 million for 2022, a decrease of $21.7 million, or 23.2%. This variance is primarily due to higher interest income on surplus cash.
For the quarter ended September 30, 2023, the excess of revenues over expenses was $90.1 million, compared with $37.9 million for the same quarter of 2022, an increase of $52.2 million, or 137.9%. As at September 30, 2023, the excess of revenues over expenses was $156.6 million, an increase of $143.0 million, or 1,051.4%, over the same period in 2022.
Financial situation
ADM's net debt at September 30, 2023 was $2.2 billion, compared with $2.3 billion at December 31, 2022; see the "Non-GAAP Measures" section for further 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 operating performance. EBITDA is meant to provide additional information and is not intended be replace other performance measures prepared under IFRS.
Net debt
Net debt corresponds to the difference between the gross balance payable on long-term obligations, including leases, and the amount available in cash and cash equivalents, short-term investments and the reserve fund allocated to debt servicing.
Key financial measures
Financial results
Third Quarter | Cumulative to September 30 | |||||
(in millions of dollars) | 2023 | 2022 | Variance (%) | 2023 | 2022 | Variance (%) |
Revenues | 253.1 | 199.7 | 26.8 | 642.5 | 460.6 | 39.5 |
Operating expenses | 64.3 | 56.6 | 12.7 | 194.7 | 152.5 | 26.7 |
Payments in lieu of municipal taxes (PILT) | 11.3 | 13.0 | (13.1) | 34.0 | 33.9 | 0.4 |
Transport Canada rent | 26.7 | 22.0 | 21.7 | 69.5 | 49.2 | 41.3 |
Depreciation and impairment of property and equipment and right-of-use assets | 37.8 | 40.4 | (6.4) | 116.4 | 118.4 | (1.7) |
Net financial expenses | 22.9 | 29.9 | (23.4) | 71.5 | 93.2 | (23.2) |
Total expenses | 163.0 | 161.9 | 0.7 | 486.1 | 447.2 | 8.7 |
Excess of revenues over expenses before share in the results of joint ventures | 90.1 | 37.8 | 138.3 | 156.4 |
13.4 |
1 065.4 |
Share in the results of joint ventures | 0.1 | 0.2 | (37.7) | 0.4 | 0.6 | (35.2) |
Income taxes | (0.1) | (0.1) | (35.9) | (0.2) | (0.4) | (72.6) |
Excess of revenues over expenses | 90.1 | 37.9 | 137.9 | 156.6 | 13.6 | 1 051.4 |
EBITDA | 150.8 | 108.1 | 39.5 | 344.3 | 225.0 | 53.0 |
Capital investments
Investments at YUL and YMX were financed by operating activities and subsidies.
Third Quarter | Cumulative to September 30 | |||||
(in millions of dollars) | 2023 | 2022 | Variance (%) | 2023 | 2022 | Variance (%) |
Airport Program | ||||||
Work completed | 48.4 | 16.7 | 178,0 | 161.1 | 61.2 | 159.6 |
Subsidies | (3.8) | (15.3) | (88.4) | (29.1) | (15.3) | 77.1 |
Sub-total airport program | 44.6 | 1.4 | 2 998.7 | 132.0 | 45.9 | 187.1 |
REM Station | ||||||
Work completed | 19.0 | 14.6 | 30.0 | 63.8 | 42.5 | 50.3 |
Subsidies | (13.0) | (9.8) | 32.3 | (31.1) | (26.0) | 19.5 |
Subtotal REM Station | 6.0 | 4.8 | 25.3 | 32.7 | 16.5 | 99.0 |
Total capital investments | 50.6 | 6.2 | 712,9 | 164.7 | 62.4 | 163.9 |
Net debt
(in billions of dollars) | September 30 2023 | December 31, | Change (%) |
Net debt | 2.2 | 2.3 | (6.0) |
The % variance in the above tables are calculated with results in thousands. |
Passenger traffic
For the third quarter of 2023, traffic at YUL totalled 6.4 million passengers, an increase of 18.1% over the same period in 2022. International traffic was up by 20.3%, transborder (U.S.) traffic by 16.9%, while domestic traffic was up by 15.6% over the third quarter of 2022.
For the third quarter under review, passenger traffic at YUL reached 105.6% of the 2019 traffic level, i.e. 112.3% international, 108.1% transborder and 95.7% domestic.
Passenger traffic in the first nine months of 2023 represents 103.1% of the corresponding period in 2019, with 111.8% for international, 103.4% for transborder and 92.1% 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 | 1,652.6 | 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 | 1,981.5 | 1,591.2 | 24.5 % | 1,839.2 | 107.7 % |
July | 2,223.2 | 1,886.3 | 17.9 % | 2,098.0 | 106.0 % |
August | 2,235.0 | 1,881.5 | 18.8 % | 2,146.8 | 104.1 % |
September | 1,927.0 | 1,639.9 | 17.5 % | 1,801.9 | 106.9 % |
Total | 16,216.2 | 11,649.2 | 39.2 % | 15,734.5 | 103.1 % |
Note: Total passenger traffic includes revenue and non-revenue passengers and are calculated with results in thousands. |
Source: Aéroports de Montréal |
Sustainability at ADM
During the quarter, ADM implemented the following initiatives to continue its commitment to sustainability:
- Hosted at YUL the inaugural flight of ALIA, the all-electric aircraft of its partner Beta Technologies, between Canada and the United States. ADM is very proud to have welcomed Beta Technologies to its site since last March, a company that is in perfect harmony with the organization's move towards sustainability.
- Obtained Airport Carbon Accreditation certification (Transformation Level), moving from Level 3 to Level 4. This certification, awarded by Airports Council International, underscores ADM's role in transforming its airport operations, and those of its business partners, to achieve absolute emissions reductions. YUL is now one of a select group of seven airports in North America to have received this Level 4 accreditation.
- Visited YUL's 55 food concessions to help them better manage their kitchen waste and provide a range of targeted recommendations for improvement.
- Continued the "Green Brigade" project in YUL's public areas, an initiative designed to help passengers and airport employees properly sort their waste. Dressed in a distinctive uniform, Enuf Canada employees will be back in the terminal throughout November and December to educate and guide food court users in sorting their waste.
To learn more about ADM's actions, visit our Sustainability Indicators platform or consult our Sustainability Plan 1.0 and our 2022 Annual Report, which presents our 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
Aéroports de Montréal, Public Affairs 514 394-7304, [email protected]
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