TORONTO, May 9, 2023 - The Greater Toronto Airports Authority (“GTAA”) today reported its financial and operating results for the first quarter of 2023. Passenger activity significantly increased by 4.8 million or 90.4 per cent to 10.0 million during the first quarter of 2023, when compared to the same period of 2022. Passenger activity increased due to the pent-up travel demand and the removal of pandemic-related government travel restrictions that existed during the first quarter of 2022. During the first quarter of 2023, passenger activity recovered to 86.0 per cent of the first quarter of 2019 passenger activity.
“Strong growth in passenger traffic continuing into first quarter of 2023 reflects the strength of demand for Toronto Pearson,” said Deborah Flint, President and CEO, GTAA. “As Canada's largest airport, bringing stability to the operating environment has been our focus with a call-to-action to our team and service partners that can meet the needs of passengers. We have dedicated significant resources to ensure a prepared and resilient start to the summer travel season and ensuring that Toronto Pearson remains a top choice for travelers worldwide.”
"The aviation industry must continue to modernize and invest in the leading services and amenities travelers want," continued Ms. Flint. "We are elevating the level of collaboration with our partners to increase sharing information, communicating effectively to the public during irregular operations, and meeting service-level commitments. We are seeing the results of reinvesting in our people, digital tools, and facilities."
Key Financial and Passenger Information
|
(millions) |
2023 |
2022 |
Change1 |
||
|
Passenger Activity |
|
|
|
% |
|
|
Domestic |
3.4 |
2.0 |
1.4 |
63.9 |
|
|
International |
6.6 |
3.2 |
3.4 |
107.6 |
|
|
Total |
10.0 |
5.2 |
4.8 |
90.4 |
|
|
($ millions) |
|
|
|
|
|
|
Total Revenues |
425.7 |
282.7 |
143.0 |
50.6 |
|
|
Total operating expenses (excluding amortization) |
222.8 |
161.7 |
61.1 |
37.7 |
|
|
EBITDA2 |
202.9 |
121.0 |
81.9 |
67.7 |
|
|
Net Income (Loss) |
48.8 |
(44.6) |
93.4 |
209.4 |
|
|
Free Cash Flow 2 |
162.3 |
33.5 |
128.8 |
384.5 |
|
|
1 % Change" and "%" are based on detailed actual numbers (not rounded as presented). |
|
|
|
||
|
2 Please refer to Non-GAAP Financial Measures at the end of this document for further details. |
|
|
|
||
Revenues increased during the first quarter of 2023 by $143.0 million to $425.7 million, when compared to the same period of 2022, primarily due to the significant growth in passenger and flight activity through Toronto Pearson and, to a lesser extent, the rate and fee increases on January 1, 2023.
Earnings before interest and financing costs, and amortization (“EBITDA”) increased significantly during the first quarter of 2023, when compared to the same period of 2022, due to a significant increase in operating activity and revenues while managing operating costs. Net income during the first quarter of 2023 increased by $93.4 million to $48.8 million, when compared to the net loss in the same period of 2022, due to the same reasons above.
Free cash flow increased during the first quarter of 2023 by $128.8 million to $162.3 million, when compared to the same period of 2022, primarily driven by the significant increase in cash flows from operations and the receipt of government grants from the Airport Critical Infrastructure Program, partially offset by the increase in capital expenditures.
The GTAA’s March 31, 2023, 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 first quarter ended March 31, 2023, which are available at www.torontopearson.com and on SEDAR at www.sedar.com.
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.sedar.com.
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 (“IFRS”), 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, 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, and investment property) 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 the Greater Toronto Airports Authority
The GTAA is the operator of Toronto Pearson International Airport.
Contact: GTAA Media Office (416) 776-3709
Twitter: @TorontoPearson