Template revised April 12, 2018.

COMMISSION

AGENDA MEMORANDUM

Item No.

11a

BRIEFING ITEM

Date of Meeting

November 10, 2020

DATE: October 23, 2020

TO: Stephen P. Metruck, Executive Director

FROM: Dan Thomas, Chief Financial Officer

Michael Tong, Director, Corporate Budget

SUBJECT: Q3 2020 Financial Performance Briefing

EXECUTIVE SUMMARY

The purpose of this presentation is to provide a status report of the Q3 2020 financial performance

results.

BACKGROUND

The Port’s overall operating revenues for Q3 2020 were $384.3 million, which is $90.7 million below

the revised budget and $204.2 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 $90.1 million, $1.8 million or 2.0% below the revised budget and $115.2 million or

56.1% lower YoY from all business line of businesses.

Non-Airport revenues were $74.2 million, $5.0 million or 6.3% below the revised budget and $35.1

million or 32.1% lower YoY mainly due to lower revenues from Cruise, Conference and Event

Centers, and NWSA Distributable Income.

Total operating expenses for first three quarters of 2020 were $299.8 million, which is $27.0 million

below the revised budget and $23.2 million lower than 2019. The operating expense variance was

largely due to lower outside services, utilities, environmental remediation liability, and travel and

other employee expenses.

Net operating income before depreciation was $84.6 million, which is $63.3 million below the

revised budget and $181.0 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

4. Economic Development Division Operating Results

5. Central Services Operating Results