News Column

Aeroports de Montreal Announces its Results for the Second Quarter of 2014

July 31, 2014

MONTREAL, QUEBEC--(Marketwired - July 31, 2014) - Aeroports de Montreal (ADM) today announced its consolidated financial results for the three- and six-month periods ended June 30, 2014. These results are accompanied by data on passenger traffic and aircraft movements at Montreal-Trudeau and Montreal-Mirabel international airports.

Highlights

Passenger traffic increased by 5.3% for the second quarter and by 3.0% for the half-year ended June 30, 2014, compared with the corresponding year-earlier periods.

EBITDA (excess of revenues over expenses before financial expenses, income taxes and depreciation) totalled $53.3 million for the second quarter of 2014, up $2.8 million, or 5.5%, over the same period of 2013. For the half-year ended June 30, EBITDA stood at $99.4 million, up $1.9 million, or 1.9%, over the corresponding six months a year ago.

The Corporation's capital investments totalled $36.0 million during the second quarter of 2014 and $62.6 million for the half-year. Work focused mainly on expansion of the international jetty. Investments in the airports are financed by cash flows from airport operations, including airport improvement fees (AIFs).

Results

Consolidated revenues amounted to $112.8 million for the second quarter of 2014, an increase of $4.7 million, or 4.3%, over the same period of 2013. Accumulated revenues as at June 30, 2014, rose by $5.9 million, or 2.7%, to $226.7 million for the first six months of 2014, compared with $220.8 million for the same period of 2013. This growth is attributable to the rise in passenger traffic, higher revenues from parking facilities as well as the annual increase in aeronautical fees.

Operating costs for the quarter under review totalled $38.5 million, up $0.9 million, or 2.4%, from the corresponding period of the previous year. Operating costs for the six months ended June 30, 2014, climbed by 3.4%, reaching $84.8 million in 2014, against $82.0 million for the first half of 2013. This variance is due, among other factors, to the rise in certain operating expenses, particularly energy costs, as well as statutory salary increases. These increases were however offset by the reduced use of de-icing products and AIF collection costs.

Depreciation amounted to $26.3 million for the second quarter, up $1.6 million, or 6.5%, over the same year-ago quarter. For the six months ended June 30, 2014, depreciation totalled $52.5 million, up $3.4 million, or 6.8%, from the corresponding half-year of 2013. The main reason for this rise was the commissioning of projects completed in 2013.

The quarter ended June 30, 2014, generated an excess of revenues over expenses of $4.0 million, compared with an excess of $3.2 million for the same quarter of 2013. The excess of revenues over expenses for the half-year ended June 30, 2014, was $0.8 million, against an excess of $4.4 million for the corresponding year-ago period.

Financial highlights

---------------------------------------------------------------------------- Cumulative Second quarter as at June 30 ---------------------------------------------------------------------------- Variance Variance (in millions of dollars) 2014 2013 (%) 2014 2013 (%) ---------------------------------------------------------------------------- Revenues 112.8 108.1 4.3 226.7 220.8 2.7 ---------------------------------------------------------------------------- Operating costs (excluding PILT) 38.5 37.6 2.4 84.8 82.0 3.4 ---------------------------------------------------------------------------- Payments in lieu of municipal taxes (PILT) 9.9 9.3 6.5 20.4 19.8 3.1 ---------------------------------------------------------------------------- Rent paid to Transport Canada 11.5 11.0 4.5 23.2 22.4 3.4 ---------------------------------------------------------------------------- Depreciation 26.3 24.7 6.5 52.5 49.1 6.8 ---------------------------------------------------------------------------- Financial expenses 22.6 22.3 1.3 45.0 44.2 1.8 ---------------------------------------------------------------------------- Total expenses 108.8 104.9 3.7 225.9 217.5 3.8 ---------------------------------------------------------------------------- Excess of revenues over expenses before income taxes 4.0 3.2 25.0 0.8 3.3 (76.9) ---------------------------------------------------------------------------- Income taxes recovered - - - - 1.1 (100.0) ---------------------------------------------------------------------------- Excess of revenues over expenses 4.0 3.2 25.0 0.8 4.4 (82.4) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- EBITDA 53.3 50.5 5.5 99.4 97.5 1.9 ---------------------------------------------------------------------------- EBITDA (excluding rent paid to Transport Canada) as a % of revenues 57.4% 56.9% 0.5 54.1% 54.3% (0.2) ----------------------------------------------------------------------------



EBITDA is a financial measurement that is not recognized by IFRS and is therefore unlikely to be comparable to similar measures presented by other corporations. EBITDA is meant to provide additional information and should not be considered as a substitute for other performance measurements prepared in accordance with IFRS. EBITDA is used by management as an indicator to evaluate ongoing operational performance.

EBITDA is defined by the Corporation as excess of revenues over expenses before financial expenses, income taxes and depreciation. Calculation of EBITDA takes into account certain financial expenses included in operating costs (net of certain interest income included in revenues), which total $0.4 million for the second quarter ($0.3 million in 2013) and $1.1 million for the half-year ($0.9 million in 2013).

Passenger traffic

Traffic at Montreal-Trudeau rose by 5.3% during the second quarter of 2014, to 3.6 million passengers, with all sectors showing increases. Domestic traffic was up by 5.9%, the transborder sector by 5.4% and international traffic by 4.5% compared to the same quarter a year ago. For the first six months of the year, traffic at Montreal-Trudeau totalled 7.2 million passengers, an increase of 3.0% compared with the first half of 2013.

Total passenger traffic(i)

---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Aeroports de Montreal 2014 2013 Variance ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- January 1,170,507 1,134,558 3.2% February 1,101,256 1,072,426 2.7% March 1,249,075 1,284,637 -2.8% ---------------------------------------------------------------------------- 1st quarter 3,520,838 3,491,621 0.8% ---------------------------------------------------------------------------- April 1,167,066 1,130,416 3.2% May 1,173,854 1,107,695 6.0% June 1,295 651 1,216,187 6.5% ---------------------------------------------------------------------------- 2nd quarter 3,636 571 3,454,298 5.3% ---------------------------------------------------------------------------- Total as at June 30 7,157 409 6,945,919 3.0% ----------------------------------------------------------------------------



(i)Note: Total passenger traffic includes revenue and non-revenue passengers.

Source: Aeroports de Montreal, preliminary figures

Aircraft movements

Aircraft movements at both ADM airports decreased by 2.3% overall in the second quarter of 2014, to 58,266 movements, compared with 59,613 for the same period a year earlier. There were 113,431 movements recorded during the first six months of 2014, against 116,861 for the corresponding year- ago period, a drop of 2.9%.

About Aeroports de Montreal

Aeroports de Montreal is the local airport authority that has been responsible for the management, operation and development of Montreal-Trudeau and Montreal-Mirabel international airports since 1992. The Corporation employs 625 people at both airports and at head office. ADM has been ISO 14001 certified since 2000 and BOMA BESt certified since 2008.

For further information on Aeroports de Montreal and its operations, please visit our website at www.admtl.com.

FOR FURTHER INFORMATION PLEASE CONTACT: Christiane Beaulieu Vice-President, Public Affairs and Communications 514 394-7304 Source: Aeroports de Montreal


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Source: Marketwire (Canada)


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