7a Supp
ITEM NO.: 7a_Supp____ DATE OF MEETING: July 23, 2013 Q2 2013 Performance Report Port of Seattle Commission Briefing July 23, 2013 Q2 Portwide Financial Highlights Total Operating Revenues were $240.0M, $16.8M below the revised budget mainly due to timing of accruals for aeronautical revenues. Total Operating Expenses were $146.0M, $14.5M, or 9.1%, below the revised budget. Net Income Before Depreciation was $2.3M, or 2.4%, below the revised budget. Net Income After Depreciation was $1.5 million, or 14.1%, below the revised budget. 2 Q2 Major Revenue Variances 2012 YTD 2013 YTD 2013 YTD Budget Change Major Revenues (in $ '000) Actual Actual Rvsd Budget Variance from 2012 Aero Revenues 114,547 104,574 120,009 (15,435) (9,973) Seaport Security Grants 1,848 - 173 (173) (1,848) Public Parking 25,205 26,055 25,410 645 850 Rental Cars 16,066 14,253 14,518 (265) (1,813) Concessions 17,652 18,721 19,293 (572) 1,069 Ground Transportation 3,931 4,012 3,725 286 80 Utilities 3,876 3,225 3,495 (270) (651) Container 38,126 31,888 31,369 519 (6,238) Seaport Industrial Properties 7,756 8,085 8,023 62 329 Grain 3,208 557 1,692 (1,135) (2,651) Recreational Boating 4,387 4,530 4,431 99 143 Commercial Properties 4,751 4,859 4,942 (82) 109 Conference & Event Centers 4,225 3,976 4,663 (687) (249) Other 18,764 19,893 19,559 335 1,129 Subtotal 142,799 135,668 136,907 (1,239) (7,131) TOTAL 259,194 240,242 257,089 (16,848) (18,952) Excluding Aeronautical Revenues and Seaport Security Grants, Other Operating Revenues were $1.2M lower than the revised budget and $7.1M lower than Q2 2012. 3 Q2 Major Expense Variances 2012 YTD 2013 YTD 2013 YTD Rvsd Bud Change Major Expenses (In $ '000) Actual Actual Rvsd Bud Variance from 2012 Salaries & Benefits 46,024 47,331 50,350 3,018 1,308 Wages & Benefits 43,162 43,757 45,297 1,540 595 Payroll to Capital Projects 9,028 9,662 11,257 1,595 634 Equipment Expense 2,896 2,795 3,093 298 (101) Supplies & Stock 3,735 2,962 3,382 419 (773) Outside Services 20,164 24,359 34,451 10,092 4,195 Utilities 11,351 11,288 11,339 51 (63) Travel & Other Employee Exps 1,963 1,840 3,304 1,464 (123) Promotional Expenses 395 562 797 235 167 Other Expenses 13,540 15,448 13,606 (1,842) 1,908 Charges to Capital Projects (13,743) (13,987) (16,328) (2,341) (244) TOTAL 138,514 146,016 160,547 14,531 7,503 Operating Expenses were $14.5M lower than the revised budget mainly due to vacant positions, timing of spending, and some actual savings. Operating Expenses were $7.5M higher than Q2 2012 mainly due to terminal realignment expense, higher payroll and environmental remediation expense. 4 Portwide Operating Summary 2012 YTD 2013 Year-to-Date YTD Bud Var Year-End Projections Revised Approved Revised Rvsd $ in 000's Actual Actual Budget $ % Budget Budget Forecast Bud Var Aeronautical Revenues 114,547 104,574 120,009 (15,435) -12.9% 249,799 245,623 248,549 2,926 Other Operating Revenues 144,647 135,668 137,080 (1,413) -1.0% 300,780 290,010 285,333 (4,677) Total Operating Revenues 259,194 240,242 257,089 (16,848) -6.6% 550,579 535,633 533,882 (1,751) Total Operating Expenses 138,514 146,016 160,547 14,531 9.1% 328,912 323,943 323,880 63 NOI before Depreciation 120,680 94,225 96,542 (2,317) -2.4% 221,667 211,690 210,002 (1,688) Depreciation 80,829 85,187 86,016 829 1.0% 171,510 171,510 171,510 0 NOI after Depreciation 39,851 9,038 10,526 (1,488) -14.1% 50,157 40,180 38,492 (1,688) Excluding Aeronautical Revenues, Other Operating Revenues for Q2 were $1.4M below the revised budget mainly due to lower revenues from Grain, Conference & Event Centers, and Concessions. Operating Expenses for Q2 were $14.5M lower than the revised budget due to vacant positions and delay hiring, savings of outside contracted services, and timing of spending. Excluding Aeronautical Revenues, Other Operating Revenues are forecasted to be $4.7M below the revised budget mainly due to lower revenues from Grain revenue and Conference & Event Centers. Total Operating Expenses are forecasted to be $63K below the revised budget due to savings from all divisions, largely offset by $4.9M unbudgeted Lora Lake environmental remediation expense. 5 Moody's Ratings Outlook Change Moody's recently affirmed the US Ports & Airports by Moody's Port's revenue bond ratings, Rating Category but revised the 1-2 year 35 outlook from stable to negative Port of Seattle 30 Senior Lien Reasons cited were Seaport 25 competitive pressures and prolonged airline lease 20 negotiations 15 The Port's Aa2 Senior Lien 10 bond rating is among the highest of all ports and airports 5 nationwide 0 Aa2 Aa3 A1 A2 A3 Baa1 Baa2 Baa3 Ba1 6 Corporate Q2 2013 Performance Report Commission Briefing July 23, 2013 Q2 Key Business Events Held Delta Airlines Seattle to Shanghai inaugural ceremony. Welcomed new joint service of United Arab Shipping and China Shipping Container Lines. Sponsored Export and Tourism Roundtable Forums and joint Commission meetings in Eastern Washington. Extended the music initiative live performances at the Airport. Launched the Cigna Wellness and Care Allies Rewards program with 97% completion of the Health Assessment. Issued the 2013 Special Facility Revenue Refunding Bonds in the amount of $88,660,000. Participated in the American Lung Association's Breathe Easy Awards Breakfast and also received the American Lung Association Award. Received the Distinguished Budget Presentation Award from GFOA. 8 Corporate Operating Summary 2012 YTD 2012 YTD 2013 Year-to-Date2013 Year-to-Date YTD Bud Var YTD Bud Var Year-End ProjectionsYear-End Projections RevisedRevised Approved ApprovedRevisedRevised Rvsd Rvsd $ in 000's $ in 000's Actual Actual ActualActual BudgetBudget $$ % % Budget BudgetBudgetBudgetForecastForecastBud Var Bud Var Total Revenues Total Revenues 165 98 123 68 3977 29 45 75.8% 58.6% 155 155 155 155 184 190 29 35 Executive Executive 718 382 793 442 946495 15353 10.8% 16.1% 1,552 1,552 1,8061,806 1,806 1,806 - - Commission Commission 425 194 448 209 704326 118 255 36.1% 36.3% 1,483 1,483 1,4451,445 1,427 1,297 18 147 Legal 567 698 735 36 5.0% 3,012 3,012 3,012 - Legal Risk Services 1,381 637 1,596 672 1,471 775 103 (125) 13.3% -8.5% 3,186 3,012 3,1663,012 3,101 3,389 65 (378) Risk Services Health & Safety Services 1,225 256 1,393 259 1,566 278 17420 7.0% 11.1% 1,138 3,186 1,1183,166 1,112 3,100 5 66 Health & Safety Services Public Affairs 486 1,270 1,199507 1,563 555 364 47 23.3% 8.5% 5,946 1,138 5,9461,118 5,946 1,106 - 11 Public Affairs Human Resources & Development 2,709 1,188 2,629 1,173 3,141 1,283 110 513 8.6% 16.3% 5,468 5,946 5,4255,946 5,425 5,817 - 129 Labor Relations 247 311 293 (19) -6.3% 1,198 1,153 1,197 (44) Human Resources & Development Information & Communications Technology 2,402 4,642 2,461 4,257 2,721 5,104 847 260 16.6% 9.6% 20,805 5,468 20,5055,425 20,505 5,325 - 100 Labor Relations Finance & Budget 492 376 559 353 578391 37 19 9.6% 3.3% 1,877 1,198 1,7771,153 1,777 1,135 19 Information & Communications Technology Accounting & Financial Reporting Services 9,359 1,500 9,223 1,376 10,194 1,625 249 971 15.3% 9.5% 7,055 20,805 6,835 20,505 6,80920,205 26 300 Finance & Budget Internal Audit 737 278 743 291 801324 33 58 10.2% 7.3% 1,361 1,877 1,3611,777 1,361 1,568 - 210 Office of Social Responsibility 359 215 464 249 53.6% 1,702 1,702 1,702 - Accounting & Financial Reporting Services Police 3,111 5,219 2,869 5,069 3,435 5,595 526 566 9.4% 16.5% 22,574 7,055 22,3186,835 22,318 6,413 - 422 Internal Audit Contingency 564 3 586 60 707 - (60) 121 0.0% 17.1% 450 1,361 450 1,361 450 1,340 - 21 Office of Social Responsibility Total Expenses 17,118 679 16,583 791 19,251 874 2,667 83 13.9% 9.4% 78,807 1,702 78,0191,702 77,949 1,682 70 20 Police 10,418 10,544 11,180 636 5.7% 22,574 22,318 22,016 302 Contingency 53 60 - (60) 0.0% 450 450 450 - Total Expenses 34,760 35,203 38,873 3,670 9.4% 78,807 78,019 76,650 1,369 9 Capital Development Division Q2 2013 Performance Report Commission Briefing July 23, 2013 CDD Q2 Key Business Events Completed construction of utility relocation for Sound Transit South Link extension. Completed construction of all new and replacement escalators in 44 escalator project. Completed airline realignment pre-move construction. Completed 30% design of centralized baggage screening system for Transportation Security Administration (TSA). Worked with Office of Social Responsibility (OSR) to revise Contractor Data System (CDS) to report on subconsultant payments. OSR is inputting data from consultants. RCW 39.10 reauthorization approved by legislature and signed by Governor. Technical support for Transportation Investment Generating Economic Recovery (TIGER) Grant Application for Terminal 46 Improvements. Notice To Proceed (NTP) issued in May for the Pier 69 Corrosion Control project. CDD Gross Operating Results 2012 YTD 2013 Year-to-Date YTD Bud Var Year-End Projections Revised Approved Revised Rvsd $ in 000's Actual Actual Budget $ % Budget Budget Forecast Bud Var Total Revenues 12 22 - 22 0.0% - - - - Expenses Before Charges To Cap/Govt/Envrs Propects Capital Development Administration 181 186 191 5 2.8% 382 378 378 - Engineering 6,119 6,362 7,412 1,050 14.2% 14,904 14,853 13,833 1,020 Port Construction Services 3,216 3,301 3,327 25 0.8% 6,618 6,591 7,207 (616) Central Procurement Office 2,292 2,197 2,249 52 2.3% 4,532 4,510 4,533 (23) Aviation Project Management 4,456 3,681 4,368 686 15.7% 8,710 8,679 8,679 - Seaport Project Management 1,073 1,161 1,963 802 40.9% 3,841 3,813 3,610 203 Total Before Charges to Capital Projects 17,338 16,887 19,508 2,621 13.4% 38,988 38,823 38,239 584 Aviation Division Q2 2013 Performance Report Commission Briefing July 23, 2013 Q2 Financial Performance 2012 YTD 2013 YTD 2013 YTD RevBud Var Change from 2012 $ in 000's Actual Actual RevBud $ % $ % Aeronautical Revenues 114,547 104,574 120,009 (15,435) -12.9% (9,973) -8.7% Non-Aeronautical Revenues 72,357 72,369 72,382 (13) 0.0% 12 0.0% Total Operating Revenues 186,903 176,943 192,391 (15,448) -8.0% (9,961) -5.3% Expenses: Operating Expenses 66,404 67,016 75,065 8,049 10.7% 612 0.9% Environmental Remediation Liability 1,914 5,176 2,308 (2,868) -124.3% 3,262 170.4% Airline Realignment 2,733 6,841 8,034 1,194 14.9% 4,108 150.3% Baseline Airport Expenses 71,051 79,032 85,407 6,375 7.5% 7,981 11.2% Corporate/CDD 29,394 29,533 32,197 2,663 8.3% 140 0.5% Total Airport Expenses 100,445 108,566 117,604 9,038 7.7% 8,121 8.1% NOI 86,458 68,377 74,787 (6,411) -8.6% (18,082) -20.9% Capital Spending 46,180 45,600 76,300 30,700 40.2% (580) -1.3% Enplaned Passengers 7,844 8,164 7,970 195 2.4% 321 4.1% Aeronautical revenues are lower than revised budget due to landing fees and terminal space rents based on 2012 carryover rates, which are less than 2013 recoverable costs. Vacant positions and payroll savings of $2.6 million. Delays in expenditures of contracted services $4.7 million: Sustainability aviation master plan Concession master plan Escalator and elevator services Unbudgeted Lora Lake environmental remediation liability of $4.9 million recognized in 2nd quarter. Airline realignment savings of $1.2 million. 14 YE Financial Performance 2012 2013 2013 2013 RevBud Var Change from 2012 Revised Approved $ in 000's Actual Forecast Budget Budget $ % $ % Aeronautical Revenues 233,000 248,549 245,623 249,799 2,926 1.2% 15,549 6.7% Non-Aeronautical Revenues 153,022 156,972 156,563 157,826 409 0.3% 3,950 2.6% Total Operating Revenues 386,023 405,521 402,186 407,625 3,336 0.8% 19,499 5.1% Expenses: Operating Expenses 144,880 152,660 152,819 155,607 159 0.1% 7,780 5.4% Environmental Remediation Liability 5,321 9,471 4,615 4,615 (4,856) -105.2% 4,150 78.0% Airline Realignment 5,802 14,311 16,069 16,069 1,758 10.9% 8,509 146.6% Baseline Airport Expenses 156,004 176,442 173,503 176,291 (2,938) -1.7% 20,438 13.1% Corporate/CDD 60,562 63,170 64,343 65,411 1,173 1.8% 2,608 4.3% Total Airport Expenses 216,565 239,612 237,846 241,702 (1,766) -0.7% 23,047 10.6% NOI 169,458 165,910 164,340 165,923 1,570 1.0% (3,548) -2.1% Capital Spending 100,305 152,600 174,651 174,651 22,051 12.6% 52,295 52.1% Key Indicators Enplaned Passengers (000s) 16,597 17,294 17,017 17,017 278 1.6% 697 4.2% CPE ($) 13.23 13.59 13.65 13.80 0.05 0.4% 0.36 2.7% Debt Service Coverage 1.40 1.34 1.33 1.35 0.01 0.8% (0.06) -4.3% Non-Aero NOI less CFC Surplus ($000) 79,787 74,937 72,915 74,810 2,022 2.8% (4,850) -6.1% Forecast and revised budget assumes airline rates and charges based on a resolution. Variable rate debt and debt related fee savings lowers aeronautical costs and revenues by $913.8K. Unbudgeted Lora Lake environmental remediation liability of $4.9 million recognized in 2nd quarter. Airline realignment savings of $1.7 million. Corporate/CDD/Police savings of $1.2 million. 15 Seaport Division Q2 2013 Performance Report Commission Briefing July 23, 2013 Seaport Business Highlights Business Volume TEU Volume was 790K, down 22% from Q2 YTD 2012. Grain volume was at 258K metric tons, down 91% from 2012 YTD and 83% under 2013 YTD budget. Cruise season commenced on May 1st. Early season occupancy has averaged 104%. Net Operating Income Full Year Forecast Revenue ($3,629K) unfavorable to budget. Expenses $569K favorable to budget. Net Operating Income ($3,060K) unfavorable to budget. United Arab Shipping Company commenced calls in June. Asset Condition Assessments 100% complete. Truck Radio Frequency Identification program underway. 17 Seaport Financial Summary 2012 YTD 2013 Year-to-Date YTD Rvsd Bud Var Year-End Projections Revised Approved Revised Rvsd $ in 000's Actual Actual Budget $ % Budget Budget Forecast Bud Var Operating Revenue 55,114 47,943 48,601 (658) -1% 110,110 100,603 97,147 (3,456) Security Grants 1,848 0 173 (173) -100% 173 173 0 (173) Total Revenues 56,962 47,943 48,774 (831) -2% 110,283 100,777 97,147 (3,629) Seaport Expenses (excl env srvs) 6,238 6,958 7,496 538 7% 15,385 14,971 14,771 200 Environmental Services 874 959 1,169 209 18% 2,675 2,675 2,675 0 Maintenance Expenses 2,759 3,104 3,092 (13) 0% 6,360 6,076 6,076 0 P69 Facilities Expenses 272 251 263 11 4% 526 526 526 0 Other RE Expenses 145 138 185 47 25% 353 353 353 0 CDD Expenses 1,969 1,792 1,792 (0) 0% 3,530 3,475 3,475 0 Police Expenses 1,900 1,973 2,115 142 7% 4,271 4,223 4,141 82 Corporate Expenses 5,494 5,432 6,282 850 14% 12,773 12,678 12,391 287 Security Grant Expense 1,833 18 0 (18) NA 0 0 0 0 Envir Remed Liability 32 (76) 585 661 113% 1,170 1,170 1,170 0 Total Expenses 21,514 20,551 22,978 2,427 11% 47,043 46,147 45,578 569 Net Operating Income 35,447 27,392 25,796 1,596 6% 63,240 54,630 51,569 (3,060) Forecasted Revenue Variance: Grain Revenue: ($2.6 million) volume is currently forecasted to come in 52% below budget. T-18 Crane Rent: ($1.6 million) due to no minimum payment required for MHI cranes if full year volume falls below 250K lifts. Tenant has indicated lifts will be below that level. T-5 Crane Rent and Intermodal Revenue: $.7 million favorable due to more usage than budgeted. 18 Real Estate Division Q2 2013 Performance Report Commission Briefing July 23, 2013 Real Estate Q2 Key Events Full Year Net Operating Income forecasted to meet budget. Occupancy Rates/Activity Commercial property at 91% occupancy, slightly below target of 92% but above 2013 Q2 Seattle market average of 89%. Marinas: Fishermen's Terminal and Maritime Industrial Center at 77% YTD average occupancy, slightly below target of 78%. Recreational marinas at 96%, above target of 92%. Conference and Event Center activity below budget due to significant new competitive challenges. Fishermen's Terminal Net Shed Compliance Improvements project authorized by Commission. Executed a purchase and sale agreement with King County and City of Seattle to sell Terminal 91 West Yard. Developer selected for Des Moines Creek Business Park. 20 The 85th Annual Blessing of the Fleet was held at Fishermen's Terminal in March. Real Estate Development & Planning: Issued a request for proposals for the Des Moines Creek Business Park site Reached settlement agreement with King County related to the condemnation action to acquire an interest in the Terminal 91 West Yard site for its CSO project Real Estate Division Financial Summary 2012 YTD 2013 Year-to-Date YTD Bud Var Year-End Projections Revised Approved Revised Rvsd $ in 000's Actual Actual Budget $ % Budget Budget Forecast Bud Var Revenue 10,937 11,250 11,184 66 1% 22,776 22,776 22,819 43 Conf & Event Ctr Revenue 4,225 3,976 4,663 (687) -15% 9,740 9,740 8,205 (1,535) Total Revenue 15,163 15,226 15,847 (621) -4% 32,516 32,516 31,024 (1,492) Real Estate Exp(excl Conf, Maint,P69) 4,929 5,102 5,789 687 12% 11,300 11,300 11,108 192 Conf & Event Ctr Expense 3,356 3,368 3,688 320 9% 7,642 7,642 6,502 1,140 Eastside Rail Corridor 189 44 89 44 50% 177 177 177 0 Maintenance Expenses 3,356 3,643 4,706 1,063 23% 9,630 9,535 9,435 100 P69 Facilities Expenses 101 85 89 4 5% 178 178 178 0 Seaport Expenses 557 578 590 12 2% 1,268 1,268 1,268 0 CDD Expenses 501 512 1,097 585 53% 2,148 2,131 2,131 0 Police Expenses 658 653 700 47 7% 1,412 1,396 1,376 20 Corporate Expenses 2,246 2,382 2,535 153 6% 5,166 5,117 5,077 40 Envir Remed Liability 97 (2) 40 42 104% 80 80 80 0 Total Expense 15,991 16,365 19,322 2,957 15% 39,002 38,824 37,332 1,492 Net Operating Income (828) (1,138) (3,475) 2,336 67% (6,486) (6,308) (6,308) 0 21
Limitations of Translatable Documents
PDF files are created with text and images are placed at an exact position on a page of a fixed size.
Web pages are fluid in nature, and the exact positioning of PDF text creates presentation problems.
PDFs that are full page graphics, or scanned pages are generally unable to be made accessible, In these cases, viewing whatever plain text could be extracted is the only alternative.