ADM ANNOUNCES ITS FINANCIAL RESULTS AT JUNE 30, 2024

MONTRÉAL, Aug. 7, 2024 /CNW/ - ADM Aéroports de Montréal today announced its consolidated operating results for the six months ended June 30, 2024. These results are accompanied by passenger traffic data for YUL Montréal-Trudeau International Airport.

Highlights

• Passenger numbers at YUL totalled 5.6 million in the second quarter of 2024, up 6.3% compared with 2023. A total of 10.6 million passengers passed through YUL in the first half of 2024, up 8.6% compared with 2023. The transborder and international sectors showed sustained growth, with increases of 12.9% and 12.4%, respectively, compared with the same six months of 2023. The domestic sector, on the other hand, declined slightly by 0.4% compared with the corresponding six months of 2023.
  
  
• EBITDA (excess of revenues over expenses before financial expense, income taxes, depreciation and impairment, and share in the results of joint ventures) (see "Non-GAAP Measures" section for more information) was $116.3 million for the second quarter under review, an increase of $11.5 million compared with EBITDA of $104.8 million for the same period in 2023. For the six months ended June 30, 2024, EBITDA totalled $214.7 million, an increase of $21.2 million over EBITDA of $193.5 million for the first six months of 2023.
  
  
• Capital investments were $125.3 million in the second quarter of 2024 compared with $110.1 million for the corresponding period of 2023, an increase of $15.2 million, or 13.8%. Capital investments for the six months ended June 30, 2024, amounted to $183.1 million ($157.6 million in 2023), an increase of $25.5 million, or 16.2%. For the six months under review, grants, mainly from the Government of Canada's Airport Critical Infrastructure Program (ACIP), totalled $12.0 million ($43.5 million in 2023).

Quote

"As passenger traffic continues to grow at YUL Montréal-Trudeau International Airport, ADM's teams remain motivated by the same goal: to provide a quality welcome and service to our passengers," said Yves Beauchamp, President and CEO of ADM. "The summer season is particularly busy at YUL, with many destinations awaiting passengers, and to cope with this record traffic alternative measures are now being offered to customers to improve access to the site. To help alleviate congestion during peak periods, they can now take advantage of our two express drop-off zones, as well as the 40-minute free period being offered at most YUL parking lots until the end of September 2024. We're delighted to be able to help so many tourists from here and elsewhere discover the world and our city. Once again, I would like to thank the airport community and our partners for always being there for travellers and helping us achieve new heights."

Financial results

Consolidated revenues were $229.2 million for the second quarter of 2024, an increase of $25.6 million, or 12.6%, over the corresponding period in 2023. Cumulative revenues to June 30, 2024 increased by 13.5%, from $389.4 million to $442.0 million in 2024. These positive results are mainly attributable to growth in passenger traffic and the AIF rate increase in March 2024.

Operating expenses for the quarter under review were $77.4 million, an increase of $12.9 million, or 20.1%, over the same quarter of 2023. For the six months ended June 30, 2024, operating expenses increased by $25.5 million, or 19.6%. This variance is due in particular to the increase in the number of employees and statutory salary increases, higher operating costs for passenger services and airport site fluidity, and professional fees related to medium- and long-term development plans for airport facilities.

Transfers to governments (payments in lieu of taxes to municipalities [PILT] and rent to Transport Canada) totalled $35.5 million for the quarter under review, up $1.2 million over the previous year, and represented 15.5% of ADM's revenues (16.9% in 2023). For the first six months of 2024, transfers amounted to $71.4 million, an increase of $5.9 million over the same six months of 2023, and represented 16.2% of ADM's total revenues (16.8% in 2023).

Depreciation and impairment of property and equipment and right-of-use assets increased to $41.0 million for the second quarter of 2024, up $1.4 million, or 3.5%, over the corresponding period of 2023. As at June 30, 2024, these expenses increased by $3.1 million, or 4.0%, to $81.7 million. This increase is due to the revaluation of certain assets as a result of new orientations of the program to improve access to the YUL airport site, and to the commissioning of new assets.

Net financial expenses totalled $22.3 million for the quarter under review, down $2.0 million, or 8.4%, from the same period in 2023. Cumulative net financial expense at June 30, 2024 totalled $43.6 million compared with $48.6 million for 2023, a decrease of $5.0 million, or 10.3%. This variance is primarily due to higher interest income on surplus cash.

For the quarter ended June 30, 2024, the excess of revenues over expenses was $53.0 million compared with $40.9 million for the same quarter of 2023, an increase of $12.1 million, or 29.9%. As at June 30, 2024, the excess of revenues over expenses was $89.7 million, an increase of $23.2 million, or 35.0%, over the same period in 2023.

Financial situation

ADM's net debt remained stable compared with December 31, 2023 and stood at $2.16 billion at June 30, 2024, 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, short-term investments as well as the debt service reserve fund.

Key financial measures

	Second quarter			Cumulative to June 30
(in millions of dollars)	2024	2023	Variance (%)	2024	2023	Variance (%)
Revenues	229.2	203.6	12.6	442.0	389.4	13.5
Operating costs	77.4	64.5	20.1	155.9	130.4	19.6
Payments in lieu of municipal taxes   (PILT)	9.9	11.9	(17.4)	22.2	22.7	(2.3)
Transport Canada rent	25.6	22.4	14.3	49.2	42.8	15.2
Depreciation and impairment of property and equipment and right-of-use assets	41.0	39.6	3.5	81.7	78.6	4.0
Net financial expenses	22.3	24.3	(8.4)	43.6	48.6	(10.3)
Total expenses	176.2	162.7	8.2	352.6	323.1	9.1
Excess of revenues over expenses before share in the results of joint ventures and income taxes	53.0	40.9	29.8	89.4	66.3	(34.9)
Share in the results of joint ventures	0.1	0.1	29.3	0.4	0.3	21.8
Income taxes	(0.1)	(0.1)	(65.3)	(0.1)	(0.1)	(46.1)
Excess of revenues over expenses	53.0	40.9	29.9	89.7	66.5	35.0
EBITDA	116.3	104.8	11.0	214.7	193.5	11.0

The % variances in the above table are calculated with results in thousands.

Capital investments

Investments at YUL and YMX in the first half of 2024 was financed by operations and grants.

	Second quarter			Cumulative to June 30
(in millions of dollars)	2024	2023	Variance (%)	2024	2023	Variance (%)
Airport program
Work completed	102.7	85.9	19.5	146.2	112.7	29.7
Grants	(0.5)	(17.8)	(97.2)	(4.8)	(25.4)	(81.1)
Subtotal airport program	102.2	68.1	50.0	141.4	87.3	62.0
REM station
Work completed	22.6	24.2	(6.5)	36.9	44.9	(17.8)
Grants	-	(1.6)	(100.0)	(7.2)	(18.1)	(60.2)
Subtotal REM station	22.6	22.6	-	29.7	26.8	10.8
Total capital investments	124.8	90.7	37.6	171.1	114.1	50.0

The % variances in the above table are calculated with results in thousands.

Net debt (in billions of dollars)

June 30, 2024	December 31, 2023	Variance (%)
2.16	2.16	(0.1)

The % variances in the above table are calculated with results in thousands.

Passenger traffic

For the second quarter of 2024, traffic at YUL totalled 5.6 million passengers, up 6.3% compared with the same period in 2023. Transborder (U.S.) traffic grew by 11.5%, international traffic was up 9.2%, while domestic traffic was down 1.5% compared with the corresponding quarter of 2023.

For the six months under review, passenger traffic totalled 10.6 million, up 8.6% compared with the same period in 2023. Transborder traffic (U.S.) grew by 12.9% and international traffic was up by 12.4%, while domestic traffic was down by 0.4% compared with the corresponding six months in 2023. Service at YUL was also expanded during the period, with the addition of new destinations including Seoul, Stockholm, Austin, St. Louis, Tulum and Marrakech.

Total passenger traffic*

(in thousands)	2024	2023	Variance 2024 vs. 2023
January	1,673.5	1,489.0	12.4 %
February	1,568.7	1,378.5	13.8 %
March	1,786.9	1,651.9	8.2 %
April	1,679.7	1,581.4	6.2 %
May	1,880.0	1,741.1	8.0 %
June	2,068.2	1,973.3	4.8 %
Total	10,657.1	9,815.2	8.6 %

*Total passenger traffic includes both revenue and non-revenue passengers and amounts are calculated with results in thousands.

Sustainability at ADM

During the quarter, ADM implemented the following initiatives to pursue its commitment to sustainability:

• Inaugurated the first space at YUL showcasing Québec's 11 Indigenous Nations. This initiative is the result of a mutual agreement between ADM and Indigenous Tourism Québec to promote the cultures and tourism offerings of Québec's 11 Indigenous Nations at strategic locations throughout the terminal.
• Deployed the world-renowned Sunflower program at YUL to help travellers with invisible disabilities who need a little extra patience, attention and assistance during their passenger journey at the airport. Wearing a lanyard in the program's colours enables YUL staff to identify people with invisible disabilities and provide them with the best possible support.
• Participated in a clean-up effort on the banks of the Bouchard Creek. ADM collected 100.8 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 of vegetation and awareness activities for citizens and businesses.

To learn more about ADM's actions, visit our Sustainability Indicators platform, read our Sustainability Report 2023 and our Sustainability Plan 1.0.

About ADM 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

Source: ADM Aéroports de Montréal, Public Affairs, 514 394-7304, [email protected]