Port of Seattle
Q1 2022 Financial Performance Report
Commission Meeting
Item No. 11c supp
Meeting Date: May 24, 2022
Key Highlights
•
Port lines of businesses are still recovering from the disruption caused by the
pandemic
•
SEA passenger growth is rebounding; forecasting 7.6% fewer passengers than
2019
•
Federal Relief grants continue to improve SEA’s bottom line
•
Projecting a record 295 sailings and 1.26 million passengers in the 2022 cruise
season
•
Projecting operating expenses to be $4.7M favorable to the budget on a full-year
basis
•
Continuing to support investments aimed at regional economic recovery
2
Port Wide Financial Summary (YE Forecast)
3
• Operating Revenues are expected to be $4.4M below budget due to $77M in Federal Relief grants applied to offset
Aeronautical revenue requirements
• Total Operating expenses are expected to be $4.7M below budget mainly due to delayed hiring and project
spending, offset by higher utility costs and capital to expense writeoff related to the Gateway Building project at
Fishermen's Terminal
• Net Operating Income before Depreciation is forecasted to be $325K above budget
Incr (De cr)
2020 2021 2022 2022
Change from 2021
$ in 000's
Actual
Actual Fore cas t
Budge t
$
% $ %
Aeronautical Revenues
297,909 317,513 385,706
394,963 (9,257) -2.3% 68,193 21.5%
Airport Non-Aero Revenues 116,473
183,819 239,404
240,820 (1,415) -0.6% 55,586 30.2%
Non-Airport Revenues
96,446 120,689
137,373 131,072 6,302 4.8% 16,685 13.8%
Total Ope rating Re venue s 510,828 622,020 762,484 766,854 (4,370) -0.6% 140,464 22.6%
Total Operating Expenses 408,681
364,656 494,450 499,146 4,696
0.9% 129,794
35.6%
NOI before Depreciation 102,147 257,364 268,033 267,708 325 0.1% 10,670 4.1%
Depreciation 180,086 190,683 196,757 196,757
- 0.0% 6,074 3.2%
NOI after Depreciation (77,939) 66,681 71,277 70,952 325
0.5% 4,596 6.9%
Fcst vs. Budge t
Fav (UnFav)
Variance
Aviation Division Financial Performance Summary
4
Business Highlights
• Passenger level forecast slightly below
budget, 7.6% below 2019
• Aeronautical revenues below budget due
to planned higher grant use
• Delay in Salty’s and AMEX lounge
openings impacting non-aero revenues
• Risks to O&M budget include payroll
vacancy, garage fire repairs, and
unplanned project costs to be expensed.
• ADF target shortfall will be addressed by
modifying funding plan and/or grant use
plan
Figures in $000s
Forecast
YE 2022
Budget
YE 2022
Variance
Revenues
Aeronautical 385,706 394,963 (9,257)
Non-Aeronautical 239,404 240,820
Total Revenues 625,110 635,783 (10,672)
O&M e xpense 396,831 397,622 791
NOI 228,279 238,160 (9,881)
Federal Relief 118,794 98,000 20,794
Concessions Relief 21,419 21,419 -
NOI
(after Federal Relief Grants)
368,492 357,579 10,913
Key Measures
Non-Aero NOI (in $000s) 110,779 114,047 (3,268)
CPE ($) 14.44 14.82 0.38
Debt Service Coverage 2.29 2.03 0.26
Other Information
ADF Balance (in $000s) 446,426 464,000 (17,574)
Capital Spending (in $000s) 449,817 527,917 78,100
5
Seaport Performance Summary
Year-to-Date
• Favorable timing of NWSA/Joint Venture income.
• Better than expected waterside occupancy at Maritime
terminals, piers and marinas.
• Slow return of conferences and events.
• Employee vacancies driving lower expenses.
Forecast
• Cruise expected to exceed revenue and passenger
budgets.
• Expected in Q2: $1.2M remaining Capital to Expense for
Gateway Building at Fishermen’s Terminal.
• Conference & Event Centers at 58% of budget.
• Joint Venture and Stormwater utility on budget.
2021 YTD 2022 YTD 2022 YTD 2022 2022
$ in 000's Actual Actual B udg e t $ % $ % Forecast B udg e t $ %
Revenues
Maritime 9,539 10,511 9,969 542 5% 972 10% 67,920 59,137 8,783 15%
Economic Development Division 2,002 2,580 3,338 (758) -23% 578 29% 14,470 18,769 (4,299) -23%
Joint Venture* 10,988 13,982 11,975 2,007 17% 2,994 27% 47,899 47,899 0 0%
Total Revenue 22,529 27,074 25,283 1,791 7% 4,545 20% 130,290 125,806 4,484 4%
Expenses
Maritime 10,937 12,729 14,013 1,283 9% 1,792 16% 58,862 57,865 (997) -2%
Economic Development Division 4,049 5,049 5,775 726 13% 1,000 25% 25,332 28,301 2,969 10%
Joint Venture 382 322 355 33 9% (60) -16% 1,727 1,727 0 0%
Total Expens e 15,368 18,100 20,142 2,043 10% 2,732 18% 85,922 87,894 1,972 2%
NOI Before Stormwater Utility 7,161 8,974 5,140 3,834 75% 1,813 25% 44,368 37,912 6,456 17%
Stormwater Utility Revenues 1,545 1,680 1,692 (12) -1% 135 9% 6,768 6,768 0 0%
Stormwater Utility Expenses 1,123 1,199 1,530 331 22% 76 7% 6,266 6,266 0 0%
Stormwater Utility NOI 422 481 162 319 197% 59 14% 502 502 0 0%
Total Non-Aviation Bus ines s NOI 7,583 9,455 5,302 4,153 78% 1,872 25% 44,871 38,415 6,456 17%
Fav (UnFav)
Fcst vs. Budget
Variance
Fav (UnFav)
Actual vs. Budget
Variance
Incr (Decr)
Change from 2021
Central Services
6
Business Highlights
Financial Summary
• Port partnered with WorkSource to host the Job and
Resource Fair for newly arrived Afghan refugees; 250
people attended
• Shared the results of the port-wide Equity Assessment
and Women of Color Assessment, the equity
performance goal requirements, and the new hiring
process requirements
• Police Assessment Implementation Team (PAIT)
reviewed the 52 recommendations highlighted by the
consultant (21 CP)
2022 2022
Figures in $000s Forecast Budget Variance
Revenues 334 186 148
Core Central Services 97,419 96,677 (742)
Police 31,686 32,746 1,060
Engineering/PCS 11,434 12,334 900
O&M Expenses 140,538 141,756 1,218
Capital Spending 9,778 10,889 1,111
Port Wide Capital Spending
7
• Total Q1 YTD capital
spending was $63M
• For the full year, total capital
spending is expected to
be $494M, 85.9% of the
budget
