TORONTO, May 9, 2024
/CNW/ - The Greater Toronto Airports Authority ("GTAA") today
reported its financial and operating results for the first quarter
of 2024. Passenger activity increased by 0.9 million, or 8.7
per cent, from 10.0 million to 10.9 million in the first quarter of
2024, when compared to the same period of 2023, due to strong
travel demand. During the first quarter of 2024, passenger activity
recovered to 92.3 per cent compared to the first quarter of 2019
passenger activity.
"Toronto Pearson International Airport's first quarter was one
of strong passenger growth, enabled by improving sector
resiliency. Our financial performance continues to
strengthen, along with improved customer experience and operational
performance, as evidenced by a 6 per cent increase in on-time
performance (departures) compared to the same period of 2023," said
Deborah Flint, President and CEO of
GTAA.
"To complement increased passenger growth, we will undertake
improvements to airport assets, such as the addition of high-speed
taxi lanes to improve airfield performance, modernized airfield
electric lighting and control systems, and power generation and
energy efficiencies to move us toward our net-zero targets," she
added. "These targeted improvements are affordable and will provide
us with greater redundancy and resiliency, positioning us to meet
the operational requirements of short-term growth."
Key Passenger and Financial Information
|
Three months ended
March 31
|
(millions)
|
2024
|
2023
|
|
Change1
|
Passenger
Activity
|
|
|
|
|
%
|
Domestic
|
3.5
|
3.4
|
|
0.1
|
2.6
|
International
|
7.4
|
6.6
|
|
0.8
|
11.8
|
Total
|
10.9
|
10.0
|
|
0.9
|
8.7
|
($ millions)
|
|
|
|
|
|
Total
Revenues
|
468.5
|
425.7
|
|
42.8
|
10.1
|
Total operating
expenses 2
|
249.3
|
222.8
|
|
26.5
|
11.9
|
EBITDA 3
|
219.2
|
202.9
|
|
16.3
|
8.0
|
EBITDA
Margin
|
46.8 %
|
47.7 %
|
|
|
(0.9)pp
|
|
|
|
|
|
|
Net
Income
|
73.6
|
48.8
|
|
24.8
|
50.8
|
|
|
|
|
|
|
Free Cash Flow
3
|
117.1
|
162.3
|
|
(45.2)
|
(27.8)
|
1
% Change" and "%" are based on
detailed actual numbers (not rounded as presented).
|
2 Total
operating expenses excluding amortization.
|
3 Please
refer to Non-GAAP Financial Measures at the end of this document
for further details.
|
Revenues increased during the first quarter of 2024 by
$42.8 million to $468.5 million, when compared to the same period
of 2023, primarily due to the growth in passenger and flight
activity through Toronto Pearson.
Earnings before interest and financing costs, and amortization
("EBITDA") increased during the first quarter of 2024 by
$16.3 million to $219.2 million, when compared to the same period
of 2023, due to the increase in revenues associated with higher
operating activity, partially offset by the increase in operating
costs (before amortization).
Net income increased during the first quarter of 2024 by
$24.8 million to $73.6 million, when compared to the same period
of 2023 due to higher revenues associated with the increase in
operating activity, a decrease in interest expense, partially
offset by an increase in operating costs during the first quarter
of 2024.
Free cash flow decreased during the first quarter of 2024 by
$45.2 million to $117.1 million, when compared to the same period
of 2023, primarily driven by the decrease in funds received under
ACIP and an increase in capital expenditures, partially offset by
an increase in cash flows from operations and interest
income. Cash flows from operations are being used to fund
increasing capital expenditures to improve facilities, enable
growth with quality customer experience and moderate debt.
The GTAA's March 31, 2024
financial results are discussed in more detail in the GTAA's
Condensed Interim Consolidated Financial Statements and
Management's Discussion and Analysis, each for the three-months
ended March 31, 2024, which are
available at www.torontopearson.com and on SEDAR at
www.sedarplus.ca.
Caution Regarding Forward-Looking
Information
This news release contains forward-looking information within
the meaning of applicable securities laws. This forward-looking
information is based on a variety of assumptions and is subject to
risks and uncertainties. These statements reflect GTAA Management's
current beliefs and are based on information currently available to
GTAA Management. There is a risk that predictions, forecasts,
conclusions and projections that constitute forward-looking
information will not prove to be accurate, that the GTAA's
assumptions may not be correct and that actual results may differ
materially from such forward-looking information. Additional
detailed information about these assumptions, risks and
uncertainties is included in the GTAA's securities regulatory
filings, including its most recent Annual Information Form and
Management's Discussion and Analysis, which can be found on SEDAR
at www.sedarplus.ca.
NON-GAAP FINANCIAL
MEASURES
Throughout this news release, there are references to the
following performance measures which in Management's view are
valuable in assessing the economic performance of the GTAA.
While these financial measures are not defined by the International
Accounting Standards Board, and are referred to as non-GAAP
measures which may not have any standardized meaning, they are
common benchmarks in the industry, and are used by the GTAA in
assessing its operating results, including operating profitability,
cash flow and investment program.
EBITDA
EBITDA is earnings from operations before interest and financing
costs, impairment of investment property, write-down of property
and equipment, and amortization. EBITDA is a commonly used
measure of a company's operating performance. This is used to
evaluate the GTAA's performance without having to factor in
financing and accounting decisions.
Free Cash Flow
Free Cash Flow ("FCF") is cash flow from operating activities,
per the consolidated statements of cash flows, and ACIP grants
received less capital expenditures (property and equipment,
investment property, and other) and interest and financing costs
paid, net of interest income (excluding non-cash items). FCF
is used to assess funds available for debt reduction or future
investments within Toronto Pearson.
About Toronto Pearson
The Greater Toronto Airports Authority is the operator of
Toronto Pearson International Airport, Canada's largest airport and a vital connector
of people, businesses, and goods.
Toronto Pearson was named "Best Airport over 40 million
passengers in North America'" in
2023 by Airports Council International (ACI), the global trade
representative of the world's airports, after winning the award
five years running between 2017 and 2021. Toronto Pearson was also
recognized in 2024 as one of "Canada's Best Employers" by Forbes.
For our corporate X channel, please visit @PearsonComms. For
operational updates and passenger information, please visit
@TorontoPearson/@AeroportPearson on X. You can also follow us on
Facebook or Instagram.
SOURCE Greater Toronto Airports Authority