7b supp short
ITEM NO: 7b_Supp_1_short DATE OF MEETING: March 24, 2015 2014 Performance Report Aviation Division Commission Briefing March 24, 2015 Aviation Financial Summary Fav (UnFav) Incr (Decr) 2013 2014 2014 Budget Variance Change from 2013 $ in 000's Actual Actual Budget $ % $ % Operating Revenues: Aeronautical Revenues 238,633 228,769 241,443 (12,674) -5.2% (9,864) -4.1% SLOA III Incentive Straight Line Adj (1) 14,304 (3,576) (3,576) (0) 0.0% (17,880) -125.0% Non-Aeronautical Revenues 161,075 180,806 166,453 14,353 8.6% 19,731 12.2% Total Operating Revenues 414,011 405,999 404,320 1,679 0.4% (8,012) -1.9% Total Airport Expenses 163,807 161,357 163,935 2,578 1.6% (2,449) -1.5% Total Charges from Other Divisions 62,113 69,305 75,048 5,743 7.7% 7,192 11.6% Total Operating Expense 225,920 230,663 238,983 8,320 3.5% 4,743 2.1% Net Operating Income 188,092 175,336 165,337 9,999 6.0% (12,755) -6.8% (1) For Accounting purposes, the 2013 reduction in the airline revenue requirement of $17.9 million was treated as a lease incentive and is being amortized over the five year SLOA III agreement. Net Operating Income $10 million above Budget 2 Key Measures Fav (UnFav) Incr (Decr) 2013 2014 2014 Budget Variance Change from 2013 Actual Actual Budget $ % $ % Performance Metrics Cost per Enplanement (CPE) 11.88 11.49 12.68 1.19 9.4% (0.39) -3.3% O&M Cost per Enplanement 13.00 12.32 13.42 1.09 8.1% (0.68) -5.2% Non-Aero Revenue per Enplanement 9.27 9.66 9.34 0.32 3.4% 0.39 4.2% Debt per Enplanement 141 126 142 16 11.5% (15) -10.7% Debt Service Coverage 1.33 1.38 1.30 0.09 6.6% 0.06 4.2% Days cash on hand (10 months = 304 days) 437 405 309 95 30.8% (32) -7.4% Aeronautical Revenue Sharing ($ in 000's) 9,901 16,996 6,136 10,859 177.0% 7,094 71.7% Activity (in 000's) Enplanements 17,376 18,717 17,813 903 5.1% 1,340 7.7% Cost per Enplanement lowest since 2009 Non-Aero Revenue per Enplanement at an all time high Enplaned passengers increased due to new scheduled flights, primarily by Alaska & Delta All Key Measures Favorable 3 2014 Performance Report Seaport Division Commission Briefing March 24, 2015 Seaport 2014 Financial Summary Fav (UnFav) Incr (Decr) 2013 2014 2014 Bud Variance Change from 2013 $ in 000's Actual Actual Budget $ % $ % Operating Revenue 99,628 96,272 101,553 (5,281) -5% (3,356) -3% Security Grants 0 0 0 0 NA 0 NA Total Revenues 99,628 96,272 101,553 (5,281) -5% (3,356) -3% Seaport Expenses (excl env srvs) 14,257 14,602 17,812 3,210 18% 345 2% Environmental Services 2,269 2,119 2,581 462 18% (150) -7% Maintenance Expenses 6,317 6,135 6,637 502 8% (182) -3% P69 Facilities Expenses 510 407 414 6 2% (102) -20% Other RE Expenses 289 316 386 70 18% 26 9% CDD Expenses 3,575 1,827 2,190 363 17% (1,749) -49% Police Expenses 4,169 4,161 4,286 125 3% (7) 0% Corporate Expenses 11,722 8,423 8,440 17 0% (3,299) -28% Security Grant Expense 23 0 0 0 NA (23) -100% Envir Remed Liability 1,248 (378) 1,180 1,558 132% (1,626) -130% Total Expenses 44,379 37,613 43,926 6,314 14% (6,767) -15% NOI Before Depreciation 55,249 58,659 57,626 1,033 2% 3,410 6% Container Revenue: ($8,135K) primarily due to the closure of Terminal 5 and elimination of Terminal 18 MHI crane minimum annual guarantee. Grain Revenue: $1,419K due to volume exceeding budget by 64%. Net Operating Income $1 million above Budget 5 2014 Performance Report Real Estate Division Commission Briefing March 24, 2015 Real Estate 2014 Financial Summary Fav (UnFav) Incr (Decr) 2013 2014 2014 Budget Variance Change from 2013 $ in 000's Actual Actual Budget $ % $ % Revenue 22,904 23,356 23,244 113 0% 452 2% Conf & Event Ctr Revenue 7,958 8,957 8,132 825 10% 999 13% Total Revenue 30,862 32,313 31,376 937 3% 1,451 5% Real Estate Exp (excl Co nf,Maint,P 69) 10,372 11,114 11,553 439 4% 742 7% Conf & Event Ctr Expense 6,473 7,374 6,858 (515) -8% 901 14% Eastside Rail Corridor 205 1,036 170 (866) -508% 831 406% Maintenance Expenses 8,928 8,778 9,311 534 6% (150) -2% P69 Facilities Expenses 172 125 126 2 1% (47) -27% Seaport Expenses 1,282 1,140 1,310 170 13% (142) -11% CDD Expenses 1,364 2,314 2,582 268 10% 950 70% Police Expenses 1,378 1,353 1,391 38 3% (26) -2% Corporate Expenses 5,087 5,181 5,417 237 4% 94 2% Envir Remed Liability 2 (3) 600 603 100% (5) -239% Total Expense 35,262 38,410 39,320 910 2% 3,148 9% NOI Before Depreciation (4,399) (6,096) (7,944) 1,847 23% (1,697) -39% Real Estate expense variance reflects underspending of Outside Services with most significant components relating to broker fees and tenant improvements. Eastside Rail Corridor expense variance reflects a reserve for litigation expenses. Envir Remed Liability expense variance reflects no spending on certain Fishermen's Terminal projects that were expected to have an operating environmental remediation component. Net Operating Income $1.8 million favorable to Budget 7 2014 Performance Report Capital Development Division Commission Briefing March 24, 2015 2014 Capital Development Financials Summary Fav (UnFav) Incr (Decr) 2013 2014 2014 Budget Variance Change from 2013 $ in 000's Actual Actual Budget $ % $ % Total Revenues 26 21 - 21 0.0% (5) -19.6% Expenses Before Charges To Cap/Govt/Envrs Propects Capital Development Administration 380 394 404 10 2.4% 14 3.8% Engineering 13,304 13,877 15,878 2,001 12.6% 573 4.3% Port Construction Services 7,192 8,186 7,556 (630) -8.3% 994 13.8% Central Procurement Office 5,020 4,616 5,332 716 13.4% (404) -8.0% Aviation Project Management 7,285 11,622 13,260 1,639 12.4% 4,337 59.5% Seaport Project Management 2,518 2,998 3,236 238 7.4% 480 19.1% Total Before Charges to Capital Projects 35,699 41,693 45,666 3,973 8.7% 5,995 16.8% Total Expenses before Charges to Capital Projects were $4.0M below budget mainly due to savings in Payroll, Outside Services, and Travel & Other Employee expenses. 9 2014 Performance Report Corporate Commission Briefing March 24, 2015 2014 Budget Variances by Department Fav (UnFav) 2013 2014 2014 Budget Variance $ in 000's Actual Actual Budget $ % Explanations Total Revenues 479 398 155 243 156.9% Unbudgeted reveues from Police grants & PA Executive 1,728 1,710 1,818 108 5.9% Savings in travel & misc. Commission 1,013 1,353 1,645 292 17.8% Payroll, travel & misc. savings Legal 3,545 3,731 3,264 (467) -14.3% Unanticipated outside legal expenses Risk Services 2,901 3,051 3,173 122 3.8% Savings in outside svcs and insurance Health & Safety Services 1,078 1,067 1,190 123 10.4% Outside svcs, supplies, travel and payroll savings Public Affairs 5,890 5,554 6,069 515 8.5% Saving in payroll, outside svcs, travel & promo Human Resources & Development 5,259 5,356 5,655 300 5.3% Payroll, travel, outside svcs savings Labor Relations 1,151 1,222 1,319 97 7.4% Payroll, travel, outside svcs & promo savings Information & Communications Technology 20,323 20,458 20,850 392 1.9% Outside svcs, telecommunications & payroll savings Finance & Budget 1,543 1,803 1,856 54 2.9% Savings in outside svcs & travel Accounting & Financial Reporting Services 5,724 6,039 7,081 1,041 14.7% Savings in outside svcs, travel, payroll & misc. Internal Audit 1,201 1,372 1,422 49 3.5% Savings in payroll and travel Office of Social Responsibility 1,644 2,115 2,187 72 3.3% Payroll, travel & misc. savings Police 22,458 22,231 22,658 427 1.9% Outside svcs, payroll & equipment savings Contingency 266 410 450 40 9.0% Miscellaneous savings Total Expenses 75,725 77,471 80,637 3,166 3.9% Corporate Expenses $3.2M favorable to Budget 11 2014 Performance Report Portwide Commission Briefing March 24, 2015 2014 Operating Income Summary Fav (UnFav) Incr (Decr) 2013 2014 2014 Budget Variance Change from 2013 $ in 000's Actual Actual Budget $ % $ % Aeronautical Revenues 238,633 228,769 241,443 (12,674) -5.2% (9,864) -4.1% SLOA III Incentive 14,304 (3,576) (3,576) () 0.0% (17,880) -125.0% Other Operating Revenues 292,041 309,780 299,536 10,244 3.4% 17,739 6.1% Total Operating Revenues 544,978 534,973 537,403 (2,430) -0.5% (10,005) -1.8% Total Operating Expenses 306,989 308,015 323,391 15,377 4.8% 1,026 0.3% NOI before Depreciation 237,989 226,958 214,012 12,946 6.0% (11,030) -4.6% Depreciation 171,374 166,337 164,386 (1,952) -1.2% (5,037) -2.9% NOI after Depreciation 66,614 60,621 49,627 10,994 22.2% (5,993) -9.0% Excluding Aeronautical revenues, other operating revenues were $309.8M, $10.2M higher than budget and $17.7M higher than 2013 actual. Total Operating Expenses were $308.0M, $15.4M below budget. Net Operating Income before Depreciation $13 million above Budget 13 Net Operating Income by Division Fav (UnFav) Incr (Decr) 2013 2014 2014 Budget Variance Change from 2013 $ in 000's Actual Actual Budget $ % $ % Aviation 188,092 175,336 165,337 9,999 6.0% (12,755) -6.8% Seaport 55,249 58,659 57,626 1,033 1.8% 3,410 6.2% Real Estate (4,399) (6,096) (7,944) 1,847 23.3% (1,697) -38.6% (1) Corp & CDD (952) (941) (1,007) 67 6.6% 12 1.2% TOTAL 237,989 226,958 214,012 12,946 6.0% (11,030) -4.6% (1) Corp & CDD are not operating divisions so "NOI" is the net of the operating revenues and non-allocable costs, such as Tourism expenses. All operating divisions had favorable NOI's to Budget 14 Capital Spending by Division 2013 2014 2014 Budget Variance $ in 000's Actual Actual Budget $ % Aviation 108,841 155,970 237,320 81,350 34.3% Seaport 5,673 10,489 27,858 17,369 62.3% Real Estate 6,060 10,922 18,101 7,179 39.7% Corporate & CDD 9,657 6,538 15,955 9,417 59.0% TOTAL 130,231 183,919 299,234 115,315 38.5% Capital spending for each division came in below budget in 2014. Total capital spending was $183.9M for 2014, $115.3M or 38.5% lower than budget. Spent 61.5% of 2014 Budget Due to Savings and Delays 15 Comprehensive Financial Summary Fav (UnFav) 2013 2014 2014 Budget Variance ($ in 000's) Actual Actual Budget $ % Explanation Revenues 1. Operating Revenues 544,978 534,973 537,403 (2,430) -0.5% See details in the previous slides 2. Tax Levy 72,738 72,801 73,000 (199) -0.3% 3. PFCs 64,661 69,803 67,879 1,924 2.8% Higher enplanement than budgeted 4. CFCs 20,389 19,889 20,568 (679) -3.3% 5. Fuel Hydrant 7,417 7,130 6,953 176 2.5% 6. Non-Capital Grants & Donations 3,771 9,899 6,688 3,210 48.0% More state grants than budgeted 7. Capital Contributions 21,381 16,746 10,393 6,353 61.1% More FAA grants than budgeted. 8. Interest Income (1,107) 11,202 7,615 3,588 47.1% Due to unrealized gain on investments Total Revenues 734,227 742,443 730,500 11,943 1.6% Expenses 1. O&M Expense 306,989 308,015 323,391 15,377 4.8% See details in the previous slides 2. Depreciation 171,374 166,337 164,386 (1,952) -1.2% 3. Revenue Bond Interest Expense 115,340 108,910 128,987 20,078 15.6% No new bond & previous refunding savings 4. GO Bond Interest Expense 11,479 9,475 9,806 330 3.4% 5. PFC Bond Interest Expense 6,212 5,906 5,953 47 0.8% 6. Public Expense 6,226 6,854 7,121 267 3.7% 7. Non-Op Environmental Expense 4,765 9,142 9,300 158 1.7% 8. Other Non-Op Expense 411 (3,653) 3,738 7,392 197.7% Due to award for W.R. bankruptcy claim Total Expenses 622,796 610,986 652,682 41,696 6.4% Increase In Net Position 111,431 131,457 77,817 53,639 68.9% 2014 Total Revenues were $742.4M, $11.9M higher than the budget and $8.2M higher than 2013 actual. 2014 Total Expenses were $611.0M, $41.7M lower than the budget and $11.8M lower than 2013 actual. Net Position increased by $131.4M, $53.6M above the budget and $20.0M higher than 2013 actual. 16
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