11a. Memo
2023 Financial Performance Briefing
COMMISSION AGENDA MEMORANDUM Item No. 11a BRIEFING ITEM Date of Meeting March 26, 2024 DATE: March 4, 2024 TO: Stephen P. Metruck, Executive Director FROM: Dan Thomas, Chief Financial Officer Michael Tong, Director, Corporate Budget SUBJECT: 2023 Financial Performance Briefing EXECUTIVE SUMMARY The purpose of this presentation is to provide a status report of the 2023 financial performance results. BACKGROUND The Port’s overall operating revenues for 2023 were $969.3 million, which is $15.6 million above the budget and $159.2 million higher than 2022. Excluding Aeronautical revenues, which are based on cost recovery and revenue sharing formulas, other Airport Non-Aero revenues were $326.6 million, $30.5 million or 10.3% above the budget and $70.0 million or 27.3% higher than 2022 from all lines of businesses. Non-Airport revenues were $163.0 million, $10.4 million or 6.8% above the budget and $12.0 million or 8.0% higher than 2022 mainly due to higher revenues from Cruise and NWSA Distributable Income. Total operating expenses for 2023 were $557.1 million, which is $16.3 million or 2.8% below budget and $81.4 million or 17.1% higher than 2022. The favorable budget variance was largely due to a $28.7 million DRS Pension True-up Credit. Excluding the Pension Credit, the budget variance was $12.4 million or 2.2% above budget mainly to higher Environmental Remediation Expense and less Charges to Capital Projects. Net operating income before depreciation was $412.1 million, which is $31.9 million or 8.4% above budget and $77.7 million or 23.2% higher than 2022. Each division will present its results to the Commission. The presentation outline is as follows: 1. Aviation Division Operating Results 2. Maritime Division Operating Results 3. Economic Development Division Operating Results Template revised April 12, 2018. COMMISSION AGENDA – Briefing Item No. 11a Page 2 of 2 Meeting Date: March 26, 2024 4. Central Services Operating Results 5. Portwide Operating Results ATTACHMENTS TO THIS BRIEFING (1) 2023 Financial and Performance Report (2) Presentation slides PREVIOUS COMMISSION ACTIONS OR BRIEFINGS August 8, 2023 – Q2 2023 Financial Performance Briefing Template revised September 22, 2016.
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