News Column

GTAA Reports 2014 Second Quarter Results

August 6, 2014



TORONTO, Aug. 6, 2014 /CNW/ - The Greater Toronto Airports Authority (the "GTAA") today reported its financial and operating results for the three- and six-month periods ended June 30, 2014.  The results show a continuation of the improvement in aviation activity experienced in 2013.  Passenger volumes continued to grow during the second quarter of 2014 reflecting both the economic strength of the Greater Toronto Region, and the role of Toronto Pearson as Canada's largest airport and North America's second busiest airport in terms of international passengers.

A total of 18.4 million passengers travelled through Toronto Pearson International Airport in the first six months of 2014, a 5.6 per cent increase compared to the same period in 2013.  During the six-month period ended June 30, 2014, passenger activity in the international sector increased by 6.5 per cent, domestic sector activity increased by 6 per cent, and transborder sector activity increased by 4.1 per cent, over the same period in 2013.  Increased growth in international traffic during the first six months of 2014 included new or increased direct service on at least six routes.

To achieve savings in net interest expense and to optimize the use of its cash and reserve funds, the GTAA purchased and cancelled $318.4 million face value of its outstanding debt during the second quarter of 2014.

For the three- and six-month periods ended June 30, 2014, the GTAA reported total revenues of $283.6 million and $566.6 million, representing improvements of $10.2 million and $25.7 million for the same periods in 2013, respectively.  The GTAA is encouraged by the continued growth in non-aeronautical revenue in the retail, and food and beverage sectors as part of a longer term revitalization project.  In addition to the over 30 retail and food and beverage locations opened in 2013, nine new retail locations have opened at Toronto Pearson in the first half of 2014. In June 2014, Toronto Pearson received global recognition for its restaurant program with two International Airport Food & Beverage Awards.

Total operating expenses during the three-month period ended June 30, 2014 were $174.3 million, a $3.7 million decrease when compared to the same 2013 period.  During the six-month period ended June 30, 2014, total operating expenses were $367.1 million, an $11.5 million increase when compared to the same 2013 period.  This increase during the first six months of 2014 included higher operating expenses caused by the prolonged winter weather that increased the cost of snow removal and utilities during the first three months of 2014.

Earnings before interest and financing costs were $109.3 million and $199.5 million for the three- and six-month periods ended June 30, 2014, respectively.  After accounting for interest and financing costs, which during three-month period ended June 30, 2014 included a one-time charge of $80.7 million related to the GTAA's purchase and cancellation of $318.4 million face value of its outstanding debt described above, the GTAA recorded net loss of $66.6 million for the three months ended June 30, 2014 and $73 million for the six months ended June 30, 2014.  Excluding the one-time charge, the GTAA recorded net income of $14.1 million and $7.6 million for the three- and six-month periods ended June 30, 2014, respectively, compared to net loss of $1.3 million and $9.2 million in the comparable 2013 periods, respectively.

The GTAA's June 30, 2014 financial results are discussed in more detail in the GTAA's Condensed Interim Financial Statements and Management's Discussion and Analysis, each for the quarter ended June 30, 2014, and are available at www.torontopearson.com and on the Canadian Securities Administrators' website at www.sedar.com.

The GTAA is the operator of Toronto Pearson International Airport.





SOURCE Greater Toronto Airports Authority


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