GTAA reports first quarter results
May 19, 2011, Toronto - The Greater Toronto Airports Authority reported its financial and operating results for the three‐month period ending March 31, 2011 on Wednesday. The first quarter of 2011 saw a continuation of the strong operating and financial results experienced in 2010.
For the three months ended March 31, 2011, the GTAA reported total revenues of $276.2 million, an $8.1 million increase over the same period in 2010. Total operating expenses were $174.8 million, unchanged when compared to the first quarter of 2010. Earnings before interest and financing costs were $101.4 million for the period. After accounting for interest and financing costs, the GTAA recorded a net loss of $35.4 million for the three months ended March 31, 2011, compared to a net loss of $14.8 million in the comparable 2010 period. The increase in the net loss is attributable to the early redemption of the Series 2008‐2 Medium Term Notes ("MTNs") in March 2011 which resulted in a charge, recorded in interest and financing costs, of $27.6 million in the quarter. The redemption and refinancing of this debt has resulted in interest savings and is expected to result in future interest savings in excess of the charge recorded in the first quarter of 2011.
A total of 7.9 million passengers travelled through Toronto Pearson International Airport in the first three months of 2011, a 5.1 per cent increase compared to the same period in 2010. There was a continuation of 2010's strong growth in passenger activity in the transborder and international segments with first quarter increases of 7.9 per cent and 8.4 per cent, respectively, when compared to the same 2010 period. First quarter passenger activity in the domestic traffic segment decreased by 0.2 per cent when compared to the first quarter of 2010.
The GTAA issued $600 million in MTNs during the first quarter of 2011 with the proceeds being applied to, among other things, the redemption of the Series 2008‐2 MTNs and capital expenditures. Debt repayments totaled $575 million during the quarter.
On January 1, 2011 the GTAA implemented its 2011 aeronautical fees. These fees were essentially unchanged from 2010 levels. On the same date the GTAA reduced the Airport Improvement Fee ("AIF") for connecting passengers from $8 to $4. The GTAA's continuing commitment to increase non‐aeronautical revenues and manage operating expenses is reflected in the reductions in average air carrier cost per enplaned passenger (the amount that air carriers pay to the GTAA expressed as a per passenger rate) which began in 2008 and continue into 2011.
The March 31, 2011 financial results of the GTAA are discussed in more detail in the Financial Statements and Notes of the GTAA for the periods ended March 31, 2011 and 2010 and Management's Discussion and Analysis for the quarter ended March 31, 2011, which are available at www.gtaa.com and on the Canadian Securities Administrators' website atwww.sedar.com.
The first quarter of 2011 represents the first fiscal period that the GTAA is reporting under International Financial Reporting Standards ("IFRS"). The Financial Statements and Notes and Management's Discussion and Analysis for the three‐month period ended March 31, 2011 contain important information on the impact of the transition to IFRS.