16 ANNUAL REPORT 2012 MANAGEMENTS DISCUSSION AND ANAL YSIS OF OPERA TING RESUL TS AND FINANCIAL CONDITION DECEMBER 31 2012 CONCESSIONS Financial highlights Three months ended Year ended millions December 31 December 31 2012 2011 2012 2011 Revenue 106 106 422 812 Gross proft 130 63 317 318 EBITDA 123 50 281 393 Adjusted EBITDA 123 50 281 278 Operating proft 123 41 251 359 EBITDA margin 1163 474 665 484 Adjusted EBITDA margin 1163 474 665 342 Operating margin 1163 390 595 442 For the three months and year ended December 31 2012 the operating proft in the Concessions segment increaseddecreased over the same periods last year as follows Three months ended Year ended millions December 31 December 31 Quito Airport Concessionaire 82 75 Cross Israel Highway Operator sold in Q3 2011 68 Gain on sale of investment in operator of CIH in 2011 115 Increasedecrease in Concessions operating proft 82 108 The majority of the decrease in revenue and operating proft in the Concessions segment during the year ended December 31 2012 is a result of the sale at the end of the third quarter of 2011 of Aecons interest in the operator of the Cross Israel Highway As a result of this sale the segments revenue and operating proft for 2012 excludes any amounts for the Cross Israel Highway operator whereas its results in 2011 include Aecons interest in these operations for nine months Also the segments results in 2011 include an 115 million gain from the sale of Aecons interest in the operator of the Cross Israel Highway Although as noted above the segment beneftted in 2012 from the release of contingencies related to the Quito airport project this was not suffcient to offset the yearoveryear impact from the 2011 sale of the segments interest in the operator of the Cross Israel Highway The operating proft from the Quito Airport concessionaire includes the results from operating the existing Quito Airport while the new Quito Airport is being constructed Substantial completion of construction of the new Quito Airport was achieved in October 2012 as scheduled The airport offcially opened to air traffc on February 20 2013 Approximately 54 million passengers departed through the existing Quito airport in 2012 a 11 increase over 2011 Aecon does not include in its reported backlog expected revenues from operations management contracts and concession agreements As such while Aecon expects future revenues from its concession assets no concession backlog is reported