Template revised April 12, 2018.

COMMISSION

AGENDA MEMORANDUM

Item No.

BRIEFING ITEM

Date of Meeting

August 13, 2019

DATE: July 19, 2019

TO: Stephen P. Metruck, Executive Director

FROM: Dan Thomas, Chief Financial Officer

Michael Tong, Director, Corporate Budget

SUBJECT: Q2 2019 Financial Performance Briefing

EXECUTIVE SUMMARY

The purpose of this presentation is to provide a status report of the Q2 2019 financial

performance results.

BACKGROUND

The Port’s overall operating revenues for Q2 2019 were $368.2 million, which is $7.9 million

above budget and $37.7 million higher than the same period last year. Excluding Aeronautical

revenues, which are based on cost recovery and revenue sharing formulas, other Airport Non-

Aero revenues were $124.6 million, $3.6 million or 2.9% over budget and $5.7 million or 4.8%

higher YoY mainly due to higher revenues from ADR & Terminal Leased Space, Ground

Transportation, and Clubs & Lounges.

Non-Airport revenues were $67.6 million, $5.4 million or 8.7% above budget were $3.6 million

or 5.6% higher YoY mainly due to higher revenues from the NWSA Distributable Income and

Conference & Event Centers.

Total operating expenses for first half of 2019 were $216.8 million, which is $16.0 million below

budget but $25.2 million higher than 2018. The operating expense variance was largely due to

delays in hiring, vacant positions, project delays, and some actual budget savings.

Net operating income before depreciation was $151.4 million, which is $23.8 million above

budget and $12.5 million higher than 2018.

Each division will present its results to the Commission. The presentation outline is as follows:

1. Portwide Operating Results

2. Aviation Division Operating Results

3. Maritime Division Operating Results

4. Economic Development Division Operating Results