ADM ANNOUNCES ITS FINANCIAL RESULTS AT SEPTEMBER 30, 2024

MONTRÉAL, Nov. 4, 2024 /CNW/ - ADM Aéroports de Montréal today announced its consolidated operating results for the quarter ended September 30, 2024. These results are accompanied by passenger traffic data for YUL Montréal-Trudeau International Airport.

Highlights

Passenger numbers at YUL totalled 6.6 million in the third quarter of 2024, up 3.7% compared with 2023. A total of 17.3 million passengers passed through YUL in the first nine months of 2024, up 6.8% compared with 2023. The transborder (U.S.) and international sectors showed sustained growth in the third quarter, with increases of 11.6% and 4.2%, respectively, compared with the same period in 2023. The domestic sector, on the other hand, declined slightly by 2.0% compared with the same period in 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 $146.6 million for the third quarter under review, a decrease of $4.2 million compared with EBITDA of $150.8 million for the same period in 2023. For the cumulative period ended September 30, 2024, EBITDA totalled $361.3 million, an increase of $17.0 million over EBITDA of $344.3 million for the first nine months of 2023.

Capital investments were $111.6 million in the third quarter of 2024, compared with $67.3 million for the corresponding period of 2023, an increase of $44.3 million, or 65.8%. Capital investments for the nine months ended September 30, 2024, amounted to $294.7 million ($224.9 million in 2023), an increase of $69.8 million, or 31.0%. Grants for the nine months, mainly from the Government of Canada's Airport Critical Infrastructure Program (ACIP), totalled $12.7 million ($60.2 million in 2023).

Quote

"The summer was very busy at YUL Montréal-Trudeau Airport, with sustained growth throughout the quarter and record passenger numbers. ADM Aéroports de Montréal is pleased to have achieved these high traffic levels while providing a more enjoyable experience for our customers," said Yves Beauchamp, President and CEO of ADM. "The various measures taken in recent months have made it easier to access the airport, although more work needs to be done to encourage people to use them. At the same time, our teams are working hard to implement our ambitious Flight Plan 2028, which will provide passengers with a more accessible and connected YUL and significantly improve traffic congestion challenges. I would like to thank airport community employees and our partners who enabled us to welcome an unprecedented number of passengers during the summer season."

Financial results

Consolidated revenues were $265.4 million for the third quarter of 2024, an increase of $12.3 million, or 4.9%, over the corresponding period in 2023. Cumulative revenues to September 30, 2024 increased by 10.1%, from $642.5 million in 2023 to $707.4 million in 2024. These positive results are mainly attributable to growth in passenger traffic and the AIF increase in March 2024.

Operating expenses for the quarter under review totalled $77.9 million, an increase of $13.6 million, or 21.2%, over the same quarter of 2023. For the nine months ended September 30, 2024, operating expenses totalled $233.8 million, compared with $194.7 million for the same period in 2023, an increase of $39.1 million, or 20.1%. 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 to $40.9 million for the quarter under review, up $2.9 million over the previous year, and represented 15.4% of ADM's revenues (15.0% in 2023). For the first nine months of 2024, transfers amounted to $112.3 million, an increase of $8.8 million over the corresponding period of 2023, and represented 15.9% of ADM's total revenues (16.1% in 2023).

Depreciation, amortization and impairment of property and equipment and right-of-use assets rose to $41.6 million for the third quarter of 2024, an increase of $3.8 million, or 9.9%, over the corresponding period of 2023. As at September 30, 2024, these expenses increased by $6.9 million, or 5.9%, to $123.3 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 $22.4 million for the quarter under review, down $0.5 million, or 2.3%, from the same period in 2023. Cumulative net financial expense at September 30, 2024 totalled $66.0 million, compared with $71.5 million for 2023, a decrease of $5.5 million, or 7.8%. This variance is primarily due to higher interest income on surplus cash.

For the quarter ended September 30, 2024, the excess of revenues over expenses was $82.9 million compared with $90.1 million for the same quarter of 2023, a decrease of $7.2 million, or 8.5%. As at September 30, 2024, the excess of revenues over expenses was $172.6 million, an increase of $16.0 million, or 9.9%, over the same period in 2023.

Financial situation

ADM's net debt at September 30, 2024 was $2.11 billion, compared with $2.16 billion at December 31, 2023; 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

Third quarter

Cumulative to September ...