Spinnaker Posted November 12, 2004 Share Posted November 12, 2004 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 ------------------------------------------------------------------------- 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 Link to comment Share on other sites More sharing options...
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