GTAA REPORTS 2024 SECOND QUARTER RESULTS

TORONTO, Aug. 7, 2024 /CNW/ - The Greater Toronto Airports Authority ("GTAA") today reported its financial and operating results for the second quarter and the first half of 2024.  Travel demand remained strong, and as a result, passenger activity increased by 0.3 million or 3.5 per cent (from 11.4 million to 11.7 million) in the second quarter of 2024 and 1.3 million or 6.2 per cent (from 21.3 million to 22.6 million) during the first half of the 2024, when compared to the same periods of 2023.  Most of the growth in the first half of 2024 was attributed to international travel, with a 10.2 per cent increase in international passengers over 2023.

Key Passenger and Financial Information

	For the periods ended June 30
	Three months				Six months
(millions)	2024	2023	Change^1		2024	2023	Change^1
Passenger Activity				%				%
Domestic	4.1	4.3	(0.2)	(3.2)	7.5	7.6	(0.1)	(1.1)
International	7.6	7.1	0.5	7.4	15.1	13.7	1.4	10.2
Total	11.7	11.4	0.3	3.5	22.6	21.3	1.3	6.2
($ millions)
Total Revenues	485.3	463.8	21.5	4.6	953.8	889.4	64.4	7.2
EBITDA ^2	237.2	247.5	(10.3)	(4.2)	456.4	450.5	5.9	1.3
EBITDA Margin	48.9 %	53.4 %		(4.5) pp	47.9 %	50.7 %		(2.8) pp
Net Income	86.4	81.1	5.3	6.6	160.1	129.9	30.2	23.2
Free Cash Flow ^2	39.9	100.7	(60.8)	(60.4)	157.0	268.9	(111.9)	(41.6)
^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.

Toronto Pearson is undertaking key programs and initiatives to accommodate increases in travel demand, with a focus on maintaining and improving customer experience while driving cost efficiency.

"Travel demand is strong and expected to surpass prior record levels. We are performing well and preparing for future growth, delivering efficient operations while maintaining financial prudence," said Deborah Flint, President and CEO of GTAA. 

"So far this year, we have hit our targets for passenger growth and revenue.  We continue to build resiliency in our operations by implementing new standards for our partners and by prioritizing initiatives that will enhance airport experiences for our passengers, partners and agencies. These projects include airside pavement restoration, new baggage-handling infrastructure, border modernization initiatives, fleet equipment revitalization, international customs arrival kiosks, and other strategic programs aimed at revitalizing aging assets and accommodating increasing passenger activity," added Flint.

Revenues increased during three- and six-months ended June 30, 2024 by $21.5 million to $485.3 million and $64.4 million to $953.8 million, respectively, when compared to the same periods of 2023, primarily due to the growth in passenger and flight activity through Toronto Pearson.

Earnings before interest and financing costs, and amortization ("EBITDA") decreased during the three-months ended June 30, 2024 by $10.3 million to $237.2 million due to an increase in operating costs (before amortization) offsetting the increase in revenues.  EBITDA increased during the six-months ended June 30, 2024 by $5.9 million to $456.4 million, when compared to the same periods of 2023, due to the increase in revenues associated with higher operating activity, partially offset by the increase in operating costs (before amortization).  EBITDA is a non-GAAP financial measure. 

Net income increased during three- and six-months ended June 30, 2024 by $5.3 million to $86.4 million and $30.2 million to $160.1 million, respectively, when compared to the same period of 2023 due to higher revenues associated with the increase in operating activity and a decrease in interest expense, partially offset by an increase in operating costs during the second quarter and first half of 2024.

Free cash flow decreased during three- and six-months ended June 30, 2024 by $60.8 million to $39.9 million and $111.9 million to $157.0 million, respectively, when compared to the same periods of 2023, primarily driven by the decreases in cash flows from operations and funds received under the Airport Critical Infrastructure Program and an increase in capital expenditures, partially offset by an increase in interest income.  Free cash flow is a non-GAAP financial measure.  Cash flows from operations are being used to fund increasing capital expenditures to improve facilities and enable growth, while maintaining quality customer experience and moderate debt levels.

The GTAA's June 30, 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- and six-months ended June 30, 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, (reversal)/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 flows 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

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