ADM ANNOUNCES ITS FINANCIAL RESULTS AT MARCH 31, 2022

MONTREAL, May 5, 2022 /CNW/ - ADM Aéroports de Montréal today announced its consolidated operating results for the first quarter ended March 31, 2022. These results are accompanied by passenger traffic data for YUL Montréal-Trudeau International Airport.

Highlights

Passenger volumes at YUL totalled 2.2 million in the first quarter of 2022. This was 413.9% higher than the corresponding period in 2021 and equal to 47.9% of passenger volumes in the first quarter of 2019. The arrival of the Omicron variant dampened growth in the first two months of the quarter but passenger volumes began to increase sharply in March, reaching nearly 60% of the level of the corresponding month in 2019. It is important to mention that with the recovery in March, YUL served 106 destinations, a record since the start of the pandemic, compared to 131 destinations served in 2019.

EBITDA (the excess of revenues over expenses before financial expenses, taxes and depreciation and impairment of property and equipment and share in the results of a joint venture, see the "Non-GAAP Measures" section for more information) was $35.0 million for the quarter under review, an increase of $45.8 million over EBITDA for the same period in 2021.

Capital investments totalled $16.0 million in the first quarter of 2022 compared with $17.8 million in the corresponding period of 2021. Investments in the airport program, still limited to essential projects, was $11.0 million in 2022 ($16.2 million in 2021) while the amount invested in the airport's REM station, net of a $10.1 million grant (nil in 2021), was $5.0 million in 2022 ($1.6 million in 2021). Investments at YUL and YMX in 2022 were financed by operating activities as well as by funds available at the beginning of the year.

Quote

"The results for the first three months of the year bode well for ADM Aéroports de Montréal, which is well positioned for a recovery of its activities as the summer season begins. With one million passengers arriving in March, a first since the very beginning of the crisis, and quarterly highs in international and transborder traffic, travellers have a renewed interest in flying. The easing of border measures will also help to accelerate this trend. The challenges remain significant for ADM, but the return of several routes to popular destinations by our airline partners will allow YUL to regain momentum, raise the profile of Montreal and renew its role as an international air traffic hub," said Philippe Rainville, President and CEO of ADM Aéroports de Montréal.

Financial results

Consolidated revenues were $102.8 million in the first three months of 2022, an increase of
$63.7 million, or 163.0%, compared with the same period in 2021. These positive results are directly related to the recovery in passenger traffic that gradually began in the last half of 2021.

Operating expenses for the quarter under review were $47.0 million, an increase of $10.2 million, or 27.7%, compared with the same quarter in 2021. This change is mainly related to the increase in operating expenses related to passenger services due to the gradual recovery of operations. In addition, ADM has met the eligibility criteria in 2022 for the Tourism and Hospitality Recovery Program. This grant for the period under review amounts to $3.2 million and is recorded as a reduction in salaries. For the corresponding period in 2021, ADM had taken advantage of the Canada Emergency Wage Subsidy program in the amount of $5.7 million.

Transfers to governments (payments in lieu of taxes to municipalities [PILT] and Transport Canada rent) amounted to $20.8 million for the period under review, representing 20.2% of the Corporation's total revenues (compared to $13.1 million, and 33.5%, respectively, for the corresponding period in 2021).

Depreciation and impairment of property and equipment and right-of-use assets decreased slightly to $39.2 million in the first three months of 2022, a decline of $1.2 million, or 3.2%, from 2021.

Net financial expenses totalled $31.6 million at March 31, 2022, a decrease of $0.8 million, or 2.3%, compared with the same period in 2021. This change is primarily due to consent fees incurred in the first quarter of 2021 and higher interest income on surplus cash, partially offset by interest expense related to the Series S bonds issued in April 2021.

As at March 31, 2022, the deficiency of revenues over expenses was $35.6 million, an improvement of $47.9 million, or 57.4%, from $83.5 million for the same period in 2021.

Financial situation

ADM's net debt as at March 31, 2022 was $2.43 billion compared with $2.45 billion as at December 31, 2021, see the "Non-GAAP Measures" section for more information.

In March 2021, ADM obtained a consent from its bondholders to amend the master trust indenture thereby relieving it temporarily of its obligations to comply with or satisfy certain covenants required by the master trust indenture for the years 2021 and 2022. This temporary waiver was requested due to the persisting uncertainty surrounding the significant decline in passenger traffic and flight activity resulting from the COVID-19 pandemic.

Non-GAAP Measures

ADM sometimes presents financial measures that are not recognized by International Financial Reporting Standards ("IFRS"), referred to as Non-GAAP Measures. They are therefore unlikely to be comparable to similar measures used by other entities.

EBITDA
EBITDA is defined by ADM as the excess of revenues over expenses before financial expenses, taxes and depreciation of property and equipment, and share in the results of a joint venture. 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 the difference between the gross balance payable on long-term obligations, including leases, and the amount available in cash and cash equivalents and the debt service reserve fund.

Key financial measures

	Cumulative at March 31
(in millions of dollars)	2022	2021	Variance (%)
Revenues	102.8	39.1	163.0
Operating expenses	47.0	36.8	27.7
PILT	10.5	9.9	6.1
Transport Canada rent	10.3	3.2	221.3
Depreciation and impairment of property and equipment and right-of-use assets	39.2	40.4	(3.2)
Financial expenses (net)	31.6	32.4	(2.3)
Total expenses	138.6	122.7	12.9
Deficiency of revenues over expenses before share in the results of a joint venture and income taxes	(35.8)	(83.6)	57.3
Share in the results of a joint venture net of taxes	0.2	0.2	13.2
Income taxes	-	(0.1)	(36.7)
Deficiency of revenues over expenses	(35.6)	(83.5)	57.4
EBITDA	35.0	(10.8)	423.3
Capital investments - Airport program	11.0	16.2	(32.1)
Capital investments - REM station (net of subsidy)	5.0	1.6	212.5

(in billions of dollars)	March 31 2022	December 31 2021	Variance (%)
Net debt	2.43	2.45	(0.7)

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

Passenger traffic

For the first quarter of 2022, traffic at YUL totalled 2.2 million passengers, an increase of 413.9% compared to the same period in 2021. International traffic increased by 530.6%, transborder (U.S.) saw a growth of 856.7%, while domestic recorded an increase of 236.7% compared to the first quarter of 2021.

Passenger traffic in the first three months of 2022 represents 47.9% of the traffic in the corresponding period of 2019, i.e. 50.8% domestic, 43.3% transborder and 48.3% international.

Total passenger traffic^*

Aéroports de Montréal
(in thousands)	2022	2021	Variance 2022 vs 2021	2019	2022 as % of 2019
January	606.3	215.5	+181.4%	1,532.2	39.6%
February	623.2	111.0	+461.6%	1,432.6	43.5%
March	1,011.4	109.6	+822.7%	1,712.6	59.1%
Total	2,240.9	436.1	+413.9%	4,677.5	47.9%

Note: Total passenger traffic includes revenue and non-revenue passengers and are calculated with results in thousands.

Source: Aéroports de Montréal

About Aéroports de Montréal
ADM Aéroports de Montréal is the airport authority for the Greater Montreal area responsible for the management, operation and development of YUL Montréal-Trudeau International Airport, which is 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]