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GTAA Results


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Attention Business/Financial Editors:

GTAA reports third quarter results

TORONTO, Nov. 12 /CNW/ - The Greater Toronto Airports Authority (the

"GTAA") today reported its financial and operating results for the third

quarter and the nine month period ending September 30, 2004. The GTAA is the

operator of Toronto Pearson International Airport, one of the largest airports

in North America in terms of passenger and air cargo traffic.

Operating activity at Toronto Pearson has shown a significant increase in

2004 over 2003 and this trend continued during the third quarter of 2004.

Total passengers served by Toronto Pearson was 8.2 million in the third

quarter and 21.7 million for the nine month period ended September 30, 2004.

This represents a 16.4% and 15.9% increase, respectively, over the comparable

2003 periods. In 2003 travel and tourism in Toronto was severely affected by

SARS and period-over-period comparisons were expected to show large increases

in operating activity; however, the pace of recovery has so far exceeded

expectations.

<<

Three months ended Nine months ended

------------------ -----------------

September 30 September 30

------------ ------------

% %

(in thousands) 2004 2003 change 2004 2003 change

-------------------------------------------------------------------------

Domestic 3,727 3,284 13.5 9,432 8,324 13.3

Transborder 2,201 1,870 17.7 6,279 5,403 16.2

International 2,270 1,891 20.0 5,947 4,962 19.9

-------------------------------------------------------------------------

Total 8,198 7,045 16.4 21,658 18,689 15.9

-------------------------------------------------------------------------

For the quarter ended September 30, 2004 revenues exceeded operating

expenses by $97.3 million compared to $70.9 million for the same period in

2003.

For the nine months ended September 30, 2004 revenues exceeded operating

expenses by $256.2 million. For the same period in 2003, revenues exceeded

operating expenses by $140.9 million.

After accounting for debt service and amortization, the GTAA recorded

revenues under expenses of $28.9 million in the third quarter of 2004 and

$59.4 million for the nine month period ended September 30, 2004. In 2003 the

comparable results were revenues over expenses by $4.7 million in the third

quarter and revenues under expenses by $48.6 million for the nine month period

ended September 30, 2003.

The excess of expenses over revenues in both 2004 periods was anticipated

due to the depreciation expense associated with the new Airport facilities

recently brought into operation.

Three months ended Nine months ended

------------------ -----------------

September 30 September 30

------------ ------------

(in thousands) 2004 2003 2004 2003

-------------------------------------------------------------------------

Revenue $ 229,981 $ 176,177 $ 623,562 $ 485,824

Operating Expenses 132,641 105,270 367,372 344,948

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Revenue over expenses(1) 97,340 70,907 256,190 140,876

Interest and financing

costs 79,653 39,750 189,183 116,565

Amortization of capital

assets 46,550 26,410 126,414 72,922

-------------------------------------------------------------------------

Revenue over/(under)

expenses $ (28,863) $ 4,747 $ (59,407) $ (48,611)

-------------------------------------------------------------------------

Note (1): Revenue over expense before interest and financing costs and

amortization of capital assets.

Cash flow from operating activities in the third quarter of 2004 was

$52.1 million compared to $49.6 million in 2003. Cash flow from operating

activities was $69.6 million for the nine months ended September 30, 2004

compared to negative $7.8 million in for the same period in 2003.

The GTAA is a non-share capital corporation which budgets to operate on a

cash breakeven basis each year. Under the rate setting methodology used by the

GTAA, cash flow from operations plus certain reserve fund activities provides

a more relevant indicator of the company's performance relative to the

breakeven requirement than does revenue over or under expenses.

During the third quarter of 2004 the GTAA issued $250 million in 30-year

medium term notes. This brings the total outstanding debt of the GTAA to

$6.3 billion. These funds have been used to pay for capital developments at

Toronto Pearson, primarily the $4.4 billion Airport Development Program. In

April 2004 the first stage of the new Terminal 1 was successfully opened. Work

continues on this facility with additional staged openings planned through

2008.

The GTAA's unaudited consolidated financial statements for the three and

nine months ended September 30, 2004 and other information on the GTAA can be

obtained from the company's website at www.gtaa.com and at the Canadian

Securities Administrators' website at www.sedar.com.

>>

For further information: Steve Shaw, Vice President, Corporate

Affairs and Communications, (416) 776-3364

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