LOS ANGELES, Jan. 14, 2004 (PRIMEZONE) -- Los Angeles World Airports (LAWA) officials today reported net operating income of $18.9 million for fiscal year 2003, a 36.2 percent increase over the previous year. Contributing to the increase was a 5.8 percent growth in operating revenue, which ended the fiscal year at $499.3 million from $471.9 million the prior year.
"Fundamental to the positive financial results achieved in fiscal year 2003 were the dedication and hard work of the 2,900 men and women of Los Angeles World Airports who create exceptional value for tenants, travelers, shippers and our other stakeholders," said Chief Financial Officer Karen Sisson. "We remain on a long-range path of financial strength that allows us to enjoy unmatched credit standing and fiscal flexibility among major airport operators in the world."
LAWA is the City of Los Angeles department that owns and operates a system of four airports in Southern California: Los Angeles International (LAX), Ontario International (ONT), Van Nuys (VNY) and Palmdale Regional (PMD). As a proprietary (or enterprise) department, LAWA receives no City funding or tax revenues.
The growth in system-wide revenues came from concessions, building rentals and landing fees at LAX and ONT, despite slightly lower passenger volumes and aircraft landings. Operating and administrative expenses rose 4.9 percent, driven by significantly increased costs related to post-Sept. 11 security measures. LAWA management continued reducing operating expenses in all areas not related to enhancing safety and security.
Ted Stein, president of the Board of Airport Commissioners, termed the financial performance particularly satisfying given the challenging business climate of the fiscal year. "SARS, the Iraqi War, lower passenger traffic and dramatically higher security costs created a most difficult environment to maintain our financial stability," Stein said. "The excellent financial footing we are currently on puts us in an enviable position to fund needed infrastructure improvements at all of the LAWA airports."
At June 30, 2003, LAWA's total net assets -- which serve as an indicator of the department's financial position -- increased $142.6 million (6.9 percent) to $2.2 billion.
LAWA prepares its financial statements following generally accepted accounting principles using the accrual basis as outlined by the Governmental Accounting Standards Board and the Financial Accounting Standards Board.
(NOTE TO EDITORS:
Summary Statements of Net Assets and Changes in Net Assets follows. A 9-page Management's Discussion and Analysis of LAWA's financial statements can be viewed on the LAWA website at at www.lawa.org.)
Los Angeles World Airports
Summary Statements of Net Assets and Changes in Net Assets
For the fiscal years ended June 30, 2003 and 2002
(Dollars in thousands)
Summary Statement %
of Net Assets FY2003 FY2002 Inc./(dec.) Inc./(dec.)
------------------- ------ ------ ----------- -----------
Assets:
Current assets $ 589,264 $ 488,512 $ 100,752 20.6%
Restricted assets 603,610 506,458 97,152 19.2
Capital assets, net 1,763,777 1,741,009 22,768 1.3
Bond issuance costs 5,019 3,658 1,361 37.2
---------- ---------- ---------- ----------
Total assets 2,961,670 2,739,637 222,033 8.1
---------- ---------- ---------- ----------
Liabilities:
Current liabilities 81,398 67,218 14,170 21.1
Current liabilities
payable from
restricted assets 186,979 152,410 34,569 22.7
Noncurrent
liabilities 493,657 462,984 30,673 6.6
---------- ---------- ---------- ----------
Total
liabilities 762,034 682,612 79,422 11.6
---------- ---------- ---------- ----------
Net assets:
Invested in capital
assets, net of
related debt 1,296,868 1,290,413 6,455 0.5
Restricted:
capital projects 16,345 45,905 (29,560) (64.4)
debt service 51,519 46,716 4,803 10.3
special purpose 212,205 196,790 15,415 7.8
Unrestricted 622,699 477,201 145,498 30.5
---------- ---------- ---------- ----------
Total net assets $2,199,636 $2,057,025 $ 142,611 6.9%
========== ========== ========== ==========
Summary of Changes %
in Net Assets FY2003 FY2002 Inc./(dec.) Inc./(dec.)
------------------ ------ ------ ----------- ------------
Operating revenue $ 499,260 $ 471,886 $ 27,374 5.8%
Operating
expenses before
depreciation
and
amortization 418,972 399,462 19,510 4.9
----------- ----------- ----------- -----------
Income from
operations
before
depreciation
and
amortization 80,288 72,424 7,864 10.9
Depreciation and
amortization (61,345) (58,512) (2,833) 4.8
----------- ----------- ----------- -----------
Operating
income 18,943 13,912 5,031 36.2
Nonoperating
revenue, net 100,376 87,908 12,468 14.2
----------- ----------- ----------- -----------
Income before
capital
grants 119,319 101,820 17,499 17.2
Capital grants 23,292 39,633 (16,341) (41.2)
----------- ----------- ----------- -----------
Change in net
assets 142,611 141,453 1,158 0.8
Total net assets
at beginning
of year 2,057,025 1,915,572 141,453 7.4
----------- ----------- ----------- -----------
Total net assets
at end of year $ 2,199,636 $ 2,057,025 $ 142,611 6.9%
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