Template revised April 12, 2018.

COMMISSION

AGENDA MEMORANDUM

Item No.

BRIEFING ITEM

Date of Meeting

August 11, 2020

DATE: July 23, 2019

TO: Stephen P. Metruck, Executive Director

FROM: Dan Thomas, Chief Financial Officer

Michael Tong, Director, Corporate Budget

SUBJECT: Q2 2020 Financial Performance Briefing

EXECUTIVE SUMMARY

The purpose of this presentation is to provide a status report of the Q2 2020 financial

performance results.

BACKGROUND

The Port’s overall operating revenues for Q2 2020 were $276.2 million, which is $26.6 million

below the revised budget and $91.9 million lower 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 $64.2 million, $3.1 million or 5.1% over the revised budget and

$60.4 million or 48.5% lower than 2019 from all business line of businesses.

Non-Airport revenues were $48.3 million, $1.1 million or 2.3% above budget and $19.3 million or

28.6% lower than last year mainly due to lower revenues from Cruise, NWSA Distributable

Income, and Conference and Event Centers. Non-Airport revenues were $48.3 million, $1.1

million or 2.3% above budget and $19.3 million or 28.6% lower than last year mainly due to lower

revenues from Cruise, NWSA Distributable Income, and Conference and Event Centers.

Total operating expenses for first half of 2020 were $197.8 million, which is $17.2 million below

budget but $18.9 million lower than 2019. 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 $78.4 million, which is $9.4 million below the

revised budget and $73.0 million less than 2019.

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