Strong second quarter for GTAA
Aug. 11, 2011, Toronto - The Greater Toronto Airports Authority today reported its financial and operating results for the six-month period ending June 30, 2011. The second quarter of 2011 saw a continuation of the strong operating and financial results experienced in 2010 and in the first quarter of 2011.
August 11, 2011 By Carey Fredericks
For the six-month period ended June 30, 2011, the GTAA reported total revenues of $558.9 million, a $19.5 million increase over the same period in 2010. Total operating expenses were $346.0 million, a reduction of $1.7 million when compared to the first half of 2010. Earnings before interest and financing costs were $212.9 million for the period. After accounting for interest and financing costs, the GTAA recorded a net loss of $29.6 million for the six months ended June 30, 2011, compared to a net loss of $27.2 million in the comparable 2010 period. The net loss for the six-month period ending on June 30, 2011 is primarily 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 first quarter of 2011. The redemption and refinancing of this debt is expected to result in future interest savings in excess of the charge recorded in the first quarter of 2011.
During the 3-month period ended June 30, 2011, the GTAA recorded total revenues of $282.7 million, an increase of $11.4 million over the same period in 2010. Total operating expenses were $171.2 million, as compared to $173.0 million for the same period in 2010. Earnings before interest and financing costs were $111.5 million for the period. After accounting for interest and financing costs, the GTAA recorded net income of $5.8 million in the second quarter of 2011, compared to a net loss of $12.4 million for the same 2010 period.
A total of 16.2 million passengers travelled through Toronto Pearson International Airport in the first six 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 increases of 6.9 per cent and 8.8 per cent, respectively, when compared to the six-month period ending June 30, 2010 period. Passenger activity in the domestic traffic segment increased by 0.7 per cent during the first six months of 2011, as compared to the first half of 2010.
The June 30, 2011 financial results of the GTAA are discussed in more detail in the Financial Statements and Notes of the GTAA for the periods ended June 30, 2011 and 2010 and Management's Discussion and Analysis for the quarter ended June 30, 2011, which are available at www.gtaa.com and on the Canadian Securities Administrators' website at www.sedar.com.
Effective January 1, 2011 the GTAA adopted International Financial Reporting Standards ("IFRS"). The Financial Statements and Notes and Management's Discussion and Analysis for the three-month periods ended March 31, 2011 and June 30, 2011 contain important information on the impact of the transition to IFRS.
The GTAA is the operator of Toronto Pearson International Airport, Canada's largest airport and one of North America's largest in terms of passenger and air cargo traffic.
In 2010, Toronto Pearson handled 31.9 million passengers. In June 2011, Toronto Pearson introduced a new brand identity to announce its renewed commitment to customer service and a focus on becoming North America's leading international gateway. To help demonstrate this commitment, travellers will see a new Toronto Pearson logo, featuring a new colour scheme and the slogan: "For You. The World." The brand focuses on Toronto Pearson, the public-facing aspect of the GTAA's business, and represents the qualities that the GTAA and the Airport will need to deliver to meet the expectations of our air carrier and passenger customers and in turn meet the GTAA's strategic objectives