ADM ANNOUNCES ITS FINANCIAL RESULTS AT MARCH 31, 2024
MONTRÉAL, May 2, 2024 /CNW/ - ADM Aéroports de Montréal today announced its consolidated operating results for the quarter ended March 31, 2024. These results are accompanied by passenger traffic data for YUL Montréal–Trudeau International Airport.
- Passenger traffic at YUL totalled 5.0 million for the first quarter of 2024, up 11.3% from the same period of 2023. Of particular note was the sustained growth of the transborder (U.S.) and international sectors, with increases of 14.4% and 15.9% respectively over levels for the corresponding 2023 quarter. Domestic sector traffic rose by 1.1% over the figure for the first quarter of 2023.
- EBITDA (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 $98.4 million for the quarter under review, an increase of $9.7 million over the EBITDA for the same period of 2023.
- Capital investments were $57.8 million for the opening quarter of 2024, compared with $47.5 million for the corresponding period of 2023, an increase of $10.3 million, or 21.7%. Grants, primarily from the Government of Canada's Airport Critical Infrastructure Program (ACIP), totalled $11.5 million, compared with $24.1 million for the first quarter of 2023.
"Passenger traffic continues to grow at YUL Montréal–Trudeau International Airport. With this in mind, and with the summer season around the corner, our teams are stepping up their efforts to provide a smoother experience for users of our facilities. By the time our ambitious Flight Plan is completed in 2028, including the addition of parking spaces and drop-off zones, the commissioning of the REM station and the addition of a satellite jetty, we must deploy alternatives to relieve congestion on the airport site," said Yves Beauchamp, President and CEO of ADM. He continued: "In the next few days, for example, the first level of the new P4 multi-level parking lot will be transformed into an express drop-off area, and a second one will be opened in early June near Chemin de la Côte-de-Liesse, offering the people accompanying passengers a choice. Free parking for 40 minutes in all lots should also ease traffic congestion. Throughout all this, we are of course working continuously to adjust our airport processes, in collaboration with the airlines and government agencies. It's going to be a busy summer at YUL, which is good news, as it means Quebecers will have the world at their doorstep, and Montréal will be visited by even more tourists. A dynamic airport benefits its entire community, and I applaud the employees of the airport community who contribute to providing travellers with a warm welcome and quality service."
Consolidated revenues were $212.8 million for the first three months of 2024, up $27.0 million, or 14.6%, over the prior-year first quarter. These positive results are mainly due to growth in passenger traffic.
Operating expenses for the quarter totalled $78.5 million, an increase of $12.6 million, or 19.1%, over the same period of 2023. This variance in operating expenses is namely associated with the increase in staff numbers and to statutory wage increases, higher operating costs for passenger services, as well as 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 paid to Transport Canada) totalled $35.9 million for the period under review, and represented 16.9% of the Corporation's total revenues, compared with $31.2 million and 16.8% respectively for the corresponding quarter of 2023.
Depreciation and impairment of property and equipment and right-of-use assets were $40.7 million for the first three months of 2024, an increase of $1.7 million, or 4.5%, compared with the same period of 2023. This increase is due mainly 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 $21.3 million at March 31, 2024, down $3.0 million, or 12.3%, compared with the same 2023 quarter. This variance is due mainly to higher interest rates on investments, combined with greater cash surpluses.
The excess of revenues over expenses was $36.7 million at March 31, 2024, an improvement of $11.1 million, or 43.0%, over the first quarter of 2023.
ADM's net debt at March 31, 2024, was $2.15 billion, compared with $2.16 billion as at December 31, 2023. See the "Non-GAAP measures" section for further information.
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, short-term investments as well as the debt service reserve fund.
Cumulative to March 31 | |||
(in millions of dollars) | 2024 | 2023 | Variance |
Revenues | 212.8 | 185.8 | 14.6 |
Operating expenses | 78.5 | 65.9 | 19.1 |
Payments in lieu of municipal taxes (PILT) | 12.3 | 10.8 | 14.3 |
Transport Canada rent | 23.6 | 20.4 | 16.1 |
Depreciation and impairment of property and equipment and right-of-use assets | 40.7 | 39.0 | 4.5 |
Net financial expenses | 21.3 | 24.3 | (12.3) |
Total expenses | 176.4 | 160.4 | 10.1 |
Excess of revenues over expenses before share in the results of joint ventures | 36.4 | 25.4 | 43.1 |
Share in the results of joint ventures | 0.3 | 0.2 | 18.8 |
Excess of revenues over expenses | 36.7 | 25.6 | 43.0 |
EBITDA | 98.4 | 88.7 | 11.0 |
The % variance in the above table are calculated with results in thousands. |
Investments during the first quarter of 2024 at YUL and YMX were financed by cashflows from operating activities and grants.
Cumulative as at March 31 | |||
(in millions of dollars) | 2024 | 2023 | Variance |
Airport Program | |||
Work completed | 43.5 | 26.8 | 62.5 |
Grants | (4.3) | (7.6) | (43.3) |
Subtotal Airport Program | 39.2 | 19.2 | 104.3 |
REM station | |||
Work completed | 14.3 | 20.7 | (31.0) |
Grants | (7.2) | (16.5) | (56.4) |
Subtotal REM station | 7.1 | 4.2 | 68.9 |
Total capital investments | 46.3 | 23.4 | 98.0 |
The % variance in the above tables are calculated with results in thousands. |
March 31, 2024 | December 31, 2023 | Variance (%) |
2.15 | 2.16 | (0.5) |
The % variance in the above tables are calculated with results in thousands. |
Traffic at YUL totalled 5 million passengers for the first quarter of 2024, an 11.3% increase over the same period in 2023. International traffic was up 15.9%, transborder (U.S.) traffic increased by 14.4%, and domestic traffic climbed by 1.1% compared with the opening quarter of 2023.
(in thousands) | 2024 | 2023 | Variance |
January | 1,674.2 | 1,489.0 | 12.4 % |
February | 1,568.4 | 1,378.5 | 13.8 % |
March | 1,786.3 | 1,651.9 | 8.1 % |
Total | 5,028.8 | 4,519.4 | 11.3 % |
*Total passenger traffic includes both revenue and non-revenue passengers and is calculated with results in thousands. |
Source: Aéroports de Montréal |
ADM implemented the following initiatives during this quarter to pursue its commitment to sustainability:
- Organized the 10th edition of the Premium Kids event at YUL, in partnership with Air Transat. This unique day allows children with autism spectrum disorder (ASD) or functional limitations to familiarize themselves and their families with the airport process and ease their anxiety about flying. This year, nearly 200 participants experienced the typical airport journey.
- Took part in a Senate Committee on Transport and Communications to discuss the impact of climate change on essential infrastructure at our YUL and YMX sites. ADM is taking action to combat climate change, notably through its Sustainability Plan 1.0 and its Net-Zero Emissions Roadmap, which aims to achieve zero emissions from its buildings and vehicles by 2040.
- Helped raise awareness about human trafficking with its very first poster campaign. As part of its commitment to making its facilities safe and secure, ADM, through this campaign, aims to raise awareness among victims by reminding them that they are never alone.
To learn more about ADM's actions, visit its Sustainability Indicators site, or read its 2023 Sustainability Report and its Sustainability Plan 1.0.
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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