Item 4a Presentation - Financial Updates — original pdf

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AUS AAC April 2022 April 12, 2022 Discussion Items • YTD Results and Forecast • AUS Debt • Revisit 2022 bond issuance from August 2021 1 10 Year Total Passenger Traffic – Fiscal year (thousands) 6% 7% 3% 10% 11,562 9% 13,406 7% 12,342 10,000 9,318 10,520 9,857 18,000 16,000 14,000 12,000 8,000 6,000 4,000 2,000 0 15% 15,451 16,907 9% 10% 20% 10% 0% -10% -20% -30% -40% -50% 10,396 9,435 -44% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: Austin-Bergstrom International Airport 2 AUS Activity Has Recovered February 2022 activity levels nearly equal to February 2020 AUS Monthly Activity 1.2M passengers (2020 and 2022) n a J b e F r a M r p A y a M n u J l u J g u A p e S t c O v o N c e D n a J b e F r a M r p A y a M n u J l u J g u A p e S t c O v o N c e D n a J b e F r a M r p A y a M n u J l u J g u A p e S t c O v o N c e D n a J b e F 2019 2021 2022 2020 Year/Month • 2019 bond issuance base case scenario projected 10M enplanements in 2025. • Current enplanement projection for 2022 is 10M Source: City of Austin Department of Aviation s r e g n e s s a P l a t o T 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 - 3 Operating Revenues 2019 - 2022 FY22 revenues expected to exceed FY19 and FY22 Budgeted 4 FY22 Forecast Revenue Airline Revenue Non Airline Revenue Interest Total Revenue Operating Expenses Operating Expenses - Aviation Operating Expenses - City Operating Reserve Cares Act Transfer to Subordinate Obligation Debt Service (Net of PFC) Total Requirements Net Income Enplanements 5 FY22 BUD FY22 Estimate Variance $74.7 $85.9 $0.4 $160.9 $103.6 $12.0 $0.0 ($18.2) $3.4 $53.2 $154.0 $7.0 $99.0 $118.1 $0.0 $217.1 $103.6 $12.0 $0.0 ($35.6) $1.1 $53.2 $134.3 $82.8 $24.3 $32.2 ($0.3) $56.2 $0.0 ($0.0) $0.0 $17.4 $2.3 $0.0 $19.7 $75.8 6,839,990 10,018,573 3,178,583 • Higher revenues due to higher aircraft activity and enplanements. • Increase in federal grants due to ARPA relief awarded after budget submission. • Hotel performance exceeding forecasts has resulted in no grant payments to ABLE YTD. FY22 Operating Revenue Trend Feb 2020 had 29 days, while Feb 2022 had 28 days Operating revenues are up 15.6% versus comparable period in FY20 (pre-pandemic) 6 FY21 Operating Revenue Trend FY22 YTD (Oct - Feb) FY20 YTD (Oct - Feb) Variance $ Variance % Airline Revenue Landing Fees Terminal Rental & Other Fees Total Airline Revenue Non-Airline Revenue Parking + GT Rental Cars Terminal Concessions Other Rentals & Fees Total Non-Airline Revenue Interest Income Total Operating Revenue 7 $16.3 $27.6 $43.8 $23.4 $7.3 $9.3 $7.4 $47.3 $0.0 $91.2 $14.0 $22.1 $36.1 $20.2 $6.6 $8.4 $7.0 $42.2 $0.5 $78.9 $2.2 $5.5 $7.7 $3.2 $0.7 $0.8 $0.4 $5.1 16% 25% 21% 16% 10% 10% 6% 12% ($0.5) $12.3 -95% 16% Landed Weights are up 14% versus FY20 YTD February Outperformance in all revenue segments AUS Airport Operating Expenses Opex (Airport related) yoy growth $103,208,942 $100,115,518 -3.00% $98,823,377 -1.29% $93,356,309 -6.75% $100,045,492 7.17% Actual 2019 Actual 2020 Budget 2021 Estimate 2021 Proposed 2022 Compared to pre-pandemic FY22 YTD (Oct - Feb) FY20 YTD (Oct - Feb) Variance B/(W) $ Variance B/(W) % Total Airport Opex $38.7 $44.0 $5.3 12% Compared to FY22 Budget FY22 YTD Act FY22 YTD Bud (Oct - Feb) (Oct - Feb) Variance B/(W) $ Variance B/(W) % Total Airport Opex $38.7 $40.6 $1.9 5% Airport opex trending lower than pre- pandemic level Airport opex lower than FY22 budget ytd 8 AUS Historical DSCR, DCOH and CPE – Fiscal Year Debt Service Coverage per Bond Ordinance – Fiscal Yr. 3.38 3.37 3.22 2.14 2.15 Days Cash on Hand – Fiscal Yr. 840 630 626 670 658 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Unrestricted Cash as of Fiscal Year End ($M) $215.24 $234.72 9 Source: Austin-Bergstrom International Airport City of Austin Comprehensive Annual Financial Report (CAFR) 2019 2021 AUS – Unrestricted cash Cash balance back to pre-pandemic levels 9/30/2019 9/30/2021 Operating Fund O&M Reserve Fund R&R Fund Surplus Capital Fund Unrestricted Cash Total $ $ 9,228,717 18,960,648 10,000,000 177,048,202 215,237,568 $ $ 2,967,842 18,960,648 10,000,000 202,790,843 234,719,333 10 Status of Federal Relief Grants  Forecasted to drawdown in $30-35M in FY22, and the remaining amounts in FY23 & 24.  Federal relief grants used towards debt service and parking expense reimbursements. Federal Relief Cares Act CRRSA ARPA Award $58,735,130 $14,623,517 $54,149,180 $127,507,827 FY20 Drawdown ($21,546,781) FY21 Drawdown ($29,872,172) Left to Draw (FY22-24) $7,316,177 $14,623,517 $54,149,180 $76,088,874 Federal Concession Relief CRRSA Concession Relief ARPA Concession Relief Award $1,822,066 $7,288,263 Status Fully Drawn In Progress 11 12 Outstanding Debt Summary - GARB $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $- Series 2013 Bonds Series 2014 Bonds Series 2017A Bonds Series 2017B Bonds Series 2019 Bonds Series 2019A Bonds Series 2019B Bonds Issue Size ($) Series 2013 2014 2017A 2017B 2019 2019A 2019B Total _______________ Debt outstanding as of September 30, 2021. Net debt service shown on an accrual basis. $60,000,000 244,495,000 185,300,000 129,665,000 151,720,000 16,975,000 248,170,000 $1,036,325,000 Outstanding ($) AMT Maturity Range Tax Status 11/15/2022 - 5/15/2028 $39,270,000 Tax-Exempt 244,495,000 11/15/2026 - 11/15/2044 185,300,000 Tax-Exempt 11/15/2026 - 11/15/2046 129,665,000 11/15/2026 - 11/15/2046 11/15/2022 -11/15/2025 118,370,000 11/15/2049 11/15/2022 - 11/15/2048 16,975,000 Tax-Exempt AMT AMT AMT Coupon Range 2.25% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Call Date Currently Callable 11/15/2024 11/15/2026 11/15/2026 Non-Callable 11/15/2029 11/15/2029 248,170,000 $982,245,000 13 Outstanding Debt Summary - ABLE $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Principal Interest Series Issue Size ($) Outstanding ($) Tax Status Maturity Range Call Date Coupon Range $45,600,000 $42,240,000 Tax-Exempt 5.00% 10/1/2027 10/1/2022 - 10/1/2036 2017 Total _______________ Debt outstanding as of September 30, 2021. Debt service shown on a cash basis. $45,600,000 $42,240,000 14 Outstanding Debt Summary - CONRAC $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- Principal Interest Series Issue Size ($) Outstanding ($) Tax Status Maturity Range Call Date Coupon Range 2021 $147,330,000 $147,330,000 Taxable 11/15/2024 - 11/15/2042 3.837 – 5.91% 03/02/2021 @ MWC 11/15/2030 @ Par Total $143,770,000 $139,415,000 15 _______________ Debt outstanding as of September 30, 2021. Debt service shown on a cash basis. 16 Series 2022 Bonds • Purpose of the Series 2022 Bonds: • Partially fund the Airport Expansion and Development Program (AEDP) which will: • Optimize the Barbara Jordan Terminal by adding new gates and making other improvements • Building a new baggage handling system • Building a future midfield Concourse B facility, including associated airfield infrastructure • Make a deposit to the Debt Service Reserve Fund • Fund capitalized interest during the construction period • Pay costs of issuance • Series 2022 Bonds subject • Principal repayment period to AMT – 2025-2052 17 ● Existing Debt Service ● Projected 2023 Debt Service Bond Summary Stats – Current Market Rates 03/30/22 18 Bond Summary Stats – Current Market Rates 03/30/22 +50bps 19 Bond Summary Stats – Current Market Rates 03/30/22 -50bps 20 Plan of Finance 2022 - 2028 Plan of Finance: 2022 - 2028 Source of Funds Cash Grants PFC Pay Go Future Bonds Prior Bonds Total 21 in millions $291 $48 $40 $1,654 $88 $2,120 • Grant dollars shown are very conservative and only accounts for traditional AIP grants based on prior award amounts. • BIL Grant amounts (not yet awarded) are not accounted for. DSCR – Five year projection Estimated 2022 2023 2024 2025 2026 Projected Debt Service Coverage Debt service coverage Debt service coverage requirement 2.54 1.25x 2.33 1.25x 2.44 1.25x 1.98 1.25x 1.96 1.25x Source: LeighFisher 22 Financing Schedule • Week of April 4 Rating Meetings • April 7 parameter City Council meeting to approve Ordinance • Week of April 18 Receive ratings and post POS • Week of April 25 Price Bonds • May 18 Closing 23 Thank you 24