MONTRÉAL, May 6, 2021 /CNW Telbec/ – ADM Aéroports de Montréal today announced its consolidated operating results for the quarter ended March 31, 2021. These results are accompanied by data on passenger traffic at YUL, Montréal-Trudeau International Airport.
Passenger volumes at YUL totalled 436,000 passengers in the first quarter of 2021, which represents an 89.3% decrease compared with 2020. This sharp decline is directly related to the global health crisis associated with COVID-19 which is having significant negative impacts on all passenger traffic sectors.
EBITDA (the excess of revenues over expenses before financial expenses, taxes and depreciation and impairment of property and equipment and share of results of a joint venture) was negative $10.8 million for the three months ended March 31, 2021, a decrease of $84.3 million, or 114.7%, compared with 2020.
ADM’s capital investments were $17.8 million in the first quarter of 2021 ($104.9 million for the same period in 2020). Investments at YUL and YMX were funded by long-term debt.
“ADM Aéroports de Montréal will continue to face significant challenges in 2021. Our forecast for the current year is for a 39% decline in passenger traffic from 2020 and an 89% decline from the year before that. With an estimated 3.3 million passengers at YUL, which is our primary source of revenues, ADM’s financial position will most certainly continue to be challenged. Nevertheless, our team continues to work hard to ensure business continuity and operations at both of our airport locations. In addition, the recent issuance of a new series of revenue bonds with a total principal amount of $400 million will help finance projects that are critical to maintaining the integrity of our assets and position us for the recovery,” said Philippe Rainville, President and CEO of ADM Aéroports de Montréal.
Consolidated revenues were $39.1 million in the first quarter of 2021, a decrease of $109.7 million, or 73.7%, compared with the same period in 2020. This is a result of travel restrictions in many countries due to the pandemic, as well as the strategy in place in Canada to manage the pandemic.
Operating expenses for the current quarter were $36.8 million, a decrease of $25.2 million, or 40.6%, compared with the same period in 2020. ADM implemented significant operating cost reduction measures, including those related to the reduction of airport operations and the temporary closure of certain areas of the terminal building. In addition, ADM took advantage of the Canada Emergency Wage Subsidy program.
Transfers to governments (payments in lieu of taxes to municipalities and rent to Transport Canada) remained relatively stable at $13.1 million for the period under review ($13.3 million for the corresponding period of 2020), a decrease of $0.2 million, or 1.7%, compared with the corresponding period of 2020.
Depreciation and impairment of property and equipment and right-of-use assets amounted to
$40.4 million in the first three months of 2021, an increase of $1.8 million, or 4.6%, compared with the same period last year. This increase is mainly due to the commissioning of new assets.
Net financial expenses totalled $32.4 million in the first quarter of 2021, an increase of $9.2 million, or 39.7%, compared to the same period last year. The change in net finance expense was primarily due to increased interest expense resulting from the issuance of the Series R Bonds in April 2020 and the costs associated with the consent process, completed in March 2021, for bondholders to temporarily waive certain provisions under the master trust indenture.
For the three months ended March 31, 2021, the deficiency of revenues over expenses was $83.5 million, a decrease of $95.4 million from an excess of revenues over expenses of $11.9 million for the same period in 2020.
|Cumulative at March 31|
|(in millions of dollars)||2021||2020||Variance|
|Payments in lieu of municipal taxes||9.9||10.0||(1.3)|
|Rent paid to Transport Canada||3.2||3.3||(2.7)|
|Depreciation of property and equipment and right-of-use assets||40.4||38.6||4.6|
|Financial expenses (net)||32.4||23.2||39.7|
|Excess (deficiency) of revenues over expenses before share in|
the results of a joint venture and income taxes
|Share in the results of a joint venture net of taxes||0.2||0.2||(12.1)|
|Excess (deficiency) of revenues over expenses||(83.5)||11.9||(804.1)|
|The % variance in this table are calculated with results in thousands.|
EBITDA is a financial measure that is not recognized by International Financial Reporting Standards (“IFRS”). It is therefore unlikely to be comparable to similar measures used by other entities that are not airports. EBITDA is defined by the Corporation 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.
For the first three months of 2021, traffic at YUL totalled 436,000 passengers, a decrease of 89.3% from 2020. International traffic was down 91.6%, transborder (U.S.) was down 94.6%, while domestic was down 82.3% compared to 2020.
Total passenger traffic*
|Aéroports de Montréal (‘000)|
There was a 90.7% decrease in passenger traffic compared with the first quarter of 2019.
|*Note: Total passenger traffic includes revenue and non-revenue passengers.|
About 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.