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Winnipeg Airports Authority Inc. – 2007 – 2nd Quarter Results

Winnipeg Airports Authority realized continued passenger volume growth while noting increased terminal construction activity.


September 20, 2007
By Carey Fredericks

WINNIPEG, July 25, 2007 – Growing in more ways than one, Winnipeg Airports Authority realized continued passenger volume growth while noting increased terminal construction activity.

For the six months ended June 30th, approximately 1,744,000 passengers utilized Winnipeg James Armstrong Richardson International Airport and its amenities, representing a 6.9% increase over the same period in 2006. Cargo activity contributed to a 7.5% increase in cargo related revenues versus 2006.

As well as welcoming increased passenger and cargo traffic, the second quarter saw tangible increases in the construction of the new air terminal building commencing with excavation of the basement 95% complete, pile driving at 40% and caissons at 20% completion. Over 475,000 hours in construction have been recorded on the project to date.

"This major capital project not only benefits us today, but is an investment in the growth of our region," said Barry Rempel, President and CEO of Winnipeg Airports Authority Inc. "Airport Site Redevelopment is contributing to current employment and providing the infrastructure necessary to transform our community for future opportunities."

Consolidated revenues were $15.9 million for the second quarter, an increase of 11.4% over the same period in 2006, due primarily to the increases in passenger volume. Cargo revenues increased by 10% over the second quarter of 2006. Operating costs were $8.0 million for the quarter, an increase of 5.7% from the previous year.

Revenues over expenses before interest, income taxes and amortization (EBITDA) were $7.9 million for the three months, an increase of 17.8% over 2006. EBITDA is used generally as a proxy to determine WAA's ability to service its debt obligations. The revenues over expenses (typically referred to as net income) was $6.5 million for the quarter (2006 – $4.4 million).