Port of Seattle Q2 2019 Financial Performance Report · 2019-09-04 · Q2 2019 Financial Performance Report. ... Maximizing Port’s real estate potential and driving jobs & economic

Port of SeattleQ2 2019 Financial Performance Report

Portwide Financial Highlights

2

Strong Q2 financial results

• Q2 YTD Actual:o Operating Revenues $7.9M favorable to budget and $37.7M over 2018.o The Non-Aviation Revenues $5.4M favorable to budget and $3.6M higher than 2018.o Operating Expenses $16.0M below budget and $25.2M over 2018.o Net Operating Income before Depreciation $23.9M favorable to budget and $12.5M

over 2018.o Total capital spending was $287.5M for Q2 2019.

• Year-End Forecast: o Operating Revenues $14.7M higher than budget.o Operating Expenses $6.8M lower than budget.o NOI before depreciation $21.6M higher than budget.

Aviation DivisionFinancial HighlightsFigure in $000s Forecast Budget VarianceRevenuesAeronautical 364,646 365,604 (958) Non-aeronautical 270,014 259,537 10,477 Total 634,660 625,141 9,519

O&M expense 363,640 366,105 2,465

NOI 271,020 259,036 11,984

Key Measures

Non-Aero NOI 149,181 136,534 12,647

CPE ($) 13.09 13.39 0.30

Capital Spending 659,813 767,732 107,919

Business Highlights• Passenger growth 3.4% YTD• NSAT Phase I complete (July)• Meeting Safety goals:

– Airfield composite safety score 20.5, above goal of 18

– Individuals not going home = 19 vs. 2019 goal ≤ 52

• Meeting customer service goals:– ASQ: Exceeding 5-year average for 2 of 6

key measures (goal is 2/6)• Completed sound insulation on 9

single family homes

On track to meet financial targets and business goals

3

Maritime DivisionFinancial Highlights Business Highlights

• YTD Q2 NOI $516K greater than 2018.– Revenue Growth 4%, Expense Growth 3%

• Completed RFQ process for new cruise terminal with 3 finalists. RFP issued to each in Q3.

• Successful first arrival of the Norwegian Joy and Royal Caribbean's Ovation of the Seas.

• Last season of the 680’ Ocean Phoenix at T-91. She will travel to Texas to be recycled in July.

• Completed solar panel installation at Pier 69. Project came in under budget with 66% of costs recovered by the grant.

• Installed rain garden adjacent to the bike path at T-86 and new drainage system in Cruise passenger area at Pier 91.

Exceeding budget and completing environmental projects

4

Figure in $000s Forecast Budget VarianceRevenuesFishing, Commercial, & Recreational Marinas 22,642 22,742 (100)Cruise 22,406 22,406 0Maritime Portfolio Mgmt. 10,328 10,328 0Grain / Other 4,254 4,254 0Total 59,629 59,729 (100)

O&M ExpenseMaritime & EDD 17,802 19,600 (1,798)Maintenance 11,980 11,980 0Central Services and Other 18,699 19,242 (543)Total 48,481 50,822 (2,341)

NOI 11,149 8,908 2,241

Capital Spending 15,105 17,638 (2,533)

Economic Development DivisionFinancial Highlights Business Highlights

• Authorization to start modernization at BHICC.• Leased 98K of yard space at T-91.• Strong response for T-106 RFP issued Q2.• Published first Diversity In Contracting Annual Report.

– 2018 WMBE results (11.8%) and 2019 goals (12.4% excl. construction)

• Port had 16.1% WMBE utilization after Q1.• Ironworker’s union program second cohort graduated 14,

and 13 are now enrolled apprentices.• RFP for Career Advancement Center at airport released.• EDD Partnership Program YTD – Approximately $796K

awarded to 25 cities in 2019.

Maximizing Port’s real estate potential and driving jobs & economic activity

5

Figure in $000s Forecast Budget Variance

Revenues 19,725 19,725 0

O&M ExpenseEDD & Maritime 14,985 15,593 (608)Maintenance 3,571 4,071 (500)Diversity in Contracting 199 199 0Workforce Development 1,600 2,010 (410)Tourism 1,521 1,521 0EDD Grants 900 1,160 (260)Central Services and Other 6,397 6,561 (164)Total 29,172 31,114 (1,942)

NOI (29,172) (31,114) 1,942

Capital Spending 4,980 5,713 (733)

Central ServicesFinancial Highlights Business Highlights

• Adopted the Duwamish Valley Community Equity Program and held the Duwamish Alive community restoration event at T117.

• Hosted Career Awareness events in Mt. Rainier High School, Foster High School, and Highline High School.

• Completed Phase 2 of Port Website Redesign project.• Provided Rapid Response trainings to airport/airline employees

by the Port Police department.

• A new Project Delivery system for smaller and major construction projects is being developed to replace two legacy project management solutions and streamline key processes.

• Released the Comprehensive Annual Financial Report (CAFR) and received a clean independent audit opinion on financial statements.

Strong performance results for Central Services

6

Figure in $000s Forecast Budget Variance

Revenues 498 185 313

O&M ExpenseCore Central Support Services 81,157 82,710 1,552 Police 29,578 30,778 1,200 Capital Development 16,227 18,628 2,401 Environment & Sustainability 12,101 13,224 1,123 Total 139,064 145,339 6,276

Capital Spending 14,844 23,368 8,524

Q & A

7

Portwide Net Operating Income Performance

Steady revenue growth since 20158

• Operating Revenues are $7.9M higher than budget due to higher revenues in:o ADRo Ground Transportationo Rental Carso Clubs and Loungeso Conference & Event Centerso NWSA Distributable Revenue

• Total Operating expenses are $16.0M below budget due to:o Staffing vacancieso Project delays

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100

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500

600

700

800

900

2015 2016 2017 2018 2019 Fcst 2019 Bud

In 000s

Airport Non-Aero Revenues Aeronautical Revenues Non-Airport Revenues Total Operating Expenses NOI

Non-Airport Net Operating Income Performance

9

NOI forecast to exceed budget

• Non-Airport Operating Revenue exceeded budget by $5.4M due to:o Higher revenue from

Conference & Event Centers.

o Higher NWSA Distributable Revenues

• Expenses are $4.6M lower than budget due to:o Staffing vacancieso Project delayso Other spending delays.

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40

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100

120

140

160

2015 2016 2017 2018 2019 Fcst 2019 Bud

In 000s

Other Operating Revenues NWSA Distributable Revenues Total Operating Expenses NOI

Aviation DivisionQ2 2019 Financial Performance Report

Aviation Business Events

Growth continues11

• PASSENGERS: o Passengers up 3.4% through Juneo International passengers up 3.0%o Tracking below adjusted 2019 growth assumption of 4% (budget assumed 3%)

• NEW INTERNATIONAL SERVICES STARTED YTD:o Cathay to Hong Kongo Japan Airlines to Tokyo-Naritao Delta to Osaka

• NEW FACILITIES: o Opened Alaska Lounge on NSAT, Phase I complete (July)

Business Highlights: 2019 GoalsSAFETY:• Airfield composite safety score of 20.5 exceeds annual target of 18• Major ground incidents YTD = 32 vs. annual goal ≤ 67• Individual not going home: Q2 YTD 19 vs. 2019 goal < 52 (on track) • Developed policy for standardized personal protective equipment required

in BagwellSECURITY:• Phase II Employee Screening authorized in May• Implemented new Credentialing Office processes to reduce wait times to

receive badge

Airfield composite safety score exceeding goal12

Business Highlights: 2019 GoalsEMPLOYEE ENGAGEMENT:• Goal is to increase employee engagement in the Aviation Division as evidenced

by a 3% increase over the 2018 survey results by Q4 2019.• Create department specific survey action plans by end of Q2: in progress

INNOVATIONS & EFFICIENCES:• Preparation for second Shark Tank innovations forum (held July 30)• Implement two efficiencies or innovations in each department – in process

ASSET MANAGEMENT:

• Asset condition assessment inventory – in process

On track13

Business Highlights: 2019 GoalsSOCIAL RESPONSIBILITY:

• Airport Concessions Disadvantaged Business Enterprise (ACDBE) share of sales = 22.5% vs. goal of 22%

• Disadvantaged Business Enterprise (DBE) share of FAA grant contract spending of 13.9% vs. goal of 8%

• Women and Minority Business Enterprise share of spending on personal services contracts = 14.2% vs. goal of 12%

CUSTOMER SERVICE:

• Through Q2 exceeding five-year average for 2 of 6 key measures (goal is 2)• Q2 increase for washroom cleanliness and internet access/wi-fi

• 76% of AV Division staff completed WE ARE customer service training

On track14

Business Highlights: 2019 GoalsENVIRONMENT AND SUSTAINABILITY:

• Completed A&E/Construction contract for condo sound insulation• Reviewing proposals for purchase of renewable natural gas• Completed sound insulation for 9 single family homes FINANCIAL PERFORMANCE:

• Forecasting to achieve both 2019 goals:o Non-aeronautical NOI of $149.2M vs. budget of $136.6M

o Airline costs (CPE) of $13.09 vs. budget of $13.39

• Commission authorized Concessions Lease Group 5 in June

On Track15

Business Highlights: 2019 Goals

CAPITAL PROJECT, PLANNING & SAMP:

• SAMP:o Submitted revised NEPA scope of work and forecast report

o Commission authorized $10 million for project planning and preliminary design for SAMP projects (July)

• Briefed Commission on main terminal optimization plan (MTOP) in July

• Completed phase 1 of North Satellite and opening of Alaska Lounge (July)

Progress on major project milestones16

Airport Activity

Total passenger growth anticipated to be 4% for year

17

Year-to-date Q2:Passengers +3.4%Landed weight +3.0%Cargo metric tons +1.2%

Airline Cost Management (CPE)

2019 Revenue Sharing down from 2018 based on change from 40% to 20% sharing

18

2019 Budget:• Adjusted for SLOA IV 20%

revenue sharing

2019 CPE Forecast:• Higher than 2018 due to

higher revenue requirements in 2019. Currently below Budget of 13.39 due to increase in forecasted non-airline revenues15,682

Non-Aeronautical Performance

ADR, parking and TNCs driving positive revenue variance in 2019 forecast

19

YTD 2019 vs. 2018:• Revenues 4.8% Increase• Expenses 8.3% Increase• NOI 2.0% Increase

Revenue growth:• Public parking• ADR• GT• Clubs and Lounges

10.22

Total Operating Expense Performance

Anticipate cost savings due to delayed project and program spending

20

Q2 YTD:• $11.4M favorable, 6.1%

2019 Forecast vs Budget : • $2.5M favorable, 0.7%

2019 Forecast under-run driven primarily by:• Cost allocations to Aviation

from other divisions due to delayed project and program spending

14.42

363,640 366,105

Capital Spending

2019 spending variances primarily due to delayed spending, not project savings

21

2019 Forecast:• IAF = $339M• NSAT = $133M• Other = $188M

Major 2019 Variances:• IAF = $38M• NSAT= $8M• Service Tunnel Renewal = $4M• SSAT Renov. Project = $3.5M• ARC Flash Mitigation = $3.4M• Fire Station Westside= $3M• Automated Security Lane =

$1.9M• Other - $46M

FTE Staffing Status

Vacancy Rate for existing FTEs, June YTD = 6.96%

22

June YTD:Average Total FTE Vacancy Rate = 8.82%

Existing FTE Vacancy Rate = 6.96%

New 2019 FTE Vacancy Rate = 44.82%

Approved Budget = 1105.78 FTEs

New FTEs = 54.37 (included in the Total)

Maritime DivisionQ2 2019 Financial Performance Report

Business Highlights

Managing growth and environmental stewardship24

• Cruise – Successful first arrival of the Norwegian Joy and Royal Caribbean’s Ovation of the Seas. Eighty percent of business volume now under contracted commitment. Received feedback on RFQ and selected three entities to participate in the RFP process.

• Elliott Bay Fishing & Commercial Operations – The 680’ Ocean Phoenix fished her last season of Pollock. She has been a 30+year tenant of the port, employing 225 crew, and bringing 4,200 tons of product annually to Pier 90. The 367’ M/V Excellence has been overhauled to help absorb the processing capacity of the Ocean Phoenix.

• Recreational Boating –Bids closed for Shilshole Bay Marina’s customer service facility buildings. Building on 4th year in a row with zero injuries.

• Seaport Environmental – Completed installation of 390 solar panels, each with 300 watts at P69. Project came in under budget with 66% of costs recovered by the grant.

• Stormwater Utility - Completed installation of a rain garden adjacent to the bike path at Terminal 86 and new drainage system in Cruise passenger area at Pier 91.

Maritime Financial Highlights

25

Revenue growth continues to outpace spending growth

Maritime – 2019 NOI is $3,435K favorable to budget and $516K higher than 2018

• YTD 2019 Revenue unfavorable to budget by $550K due to cruise schedule and late berthing agreement. YTD 2019 Revenue $1,110K or 4% higher than 2018 driven by Salmon Bay Marina acquisition, Recreational Boating & Cruise rate increases offset by reduction in Grain volumes and leases from WSDOT.

• Expenses $3,985K favorable to budget driven by Cruise consulting and marketing, Maintenance timing, and unfilled positions. Expense are up $594K or 3% Y/Y.

• 11% of Capital budget was spent in the 1st half, with annual forecast at 86% of budget.

• Stormwater Utility is tracking to budget.

2017 YTD 2018 YTD Budget Variance Change from 2018$ in 000's Actual Actual Actual Budget $ % $ %Total Revenues 24,525 26,257 27,368 27,918 (550) -2% 1,110 4%Total Operating Expenses 19,690 21,716 22,310 26,295 3,985 15% 594 3%Net Operating Income 4,835 4,541 5,058 1,623 3,435 212% 516 11%

Depreciation 8,442 8,823 8,911 8,804 (107) -1% 88 1%

Net Income (3,606) (4,281) (3,853) (7,181) 3,328 46% 429 10%

Fav (UnFav) Incr (Decr)2019 Year-to-Date

YTD Results

Fav (UnFav)Incr (Decr)

2017 YTD2018 YTD2019 Year-to-DateBudget VarianceChange from 2018

$ in 000's Actual Actual ActualBudget $ %$%

Ship Canal Fishing & Operations1,4561,6102,0042,010(6)-0%39424%

Elliott Bay Fishing & Commercial Operations2,9843,0123,0672,9611054%552%

Recreational Boating 5,4386,0686,2286,358(131)-2%1603%

Cruise6,3256,8068,4739,114(641)-7%1,66825%

Bulk3,0423,1232,5672,4231446%(556)-18%

Maritime Portfolio Management5,2675,6285,0195,052(33)-1%(609)-11%

Other141110010NA(1)-8%

Total Revenue24,52526,25727,36827,918(550)-2%1,1104%

Expenses

Ship Canal Fishing & Operations1,0211,1831,2271,49326618%444%

Elliott Bay Fishing & Commercial Operations1,2891,3151,2021,40720515%(113)-9%

Rec Boating1,8571,9522,0272,31228512%754%

Cruise4271,1369982,3071,30957%(138)-12%

Security00000NA0NA

Other Maritime221365280270(11)-4%(85)-23%

Maintenance Expenses4,6585,5765,5216,22770611%(55)-1%

Portfolio Management1,7702,0312,1362,40226611%1055%

Other ED Expenses35332023235612335%(87)-27%

Total Maritime & EDD expenses11,59513,87813,62416,7733,14919%(254)-2%

Enviromental & Sustainability5985191,0821,29421216%563108%

CDD Expenses41943741542051%(22)-5%

Police Expenses1,8892,1691,9882,24025211%(181)-8%

Other Central Services 4,7254,7075,0555,4614067%3497%

Aviation Division93105135107(28)-26%3028%

Total Central Services & Aviation7,7247,9378,6759,5228479%7389%

Envir Remed Liability371(99)110(11)NA110-111%

Total Expense19,69021,71622,31026,2953,98515%5943%

NOI Before Depreciation4,8354,5415,0581,6233,435212%51611%

Depreciation8,4428,8238,9118,804(107)-1%881%

NOI After Depreciation(3,606)(4,281)(3,853)(7,181)3,32846%42910%

Forecast


2017201820192019Budget VarianceChange from 2018

$ in 000's ActualActualForecastBudget$%$%


Elliott Bay Fishing & Commercial Operations6,4436,7555,8275,927(100)-2%(928)-14%

Recreational Boating 11,08612,03512,79412,79400%7606%

Cruise17,59618,88022,40622,40600%3,52619%

Bulk5,4275,1674,2544,25400%(913)-18%

Maritime Portfolio Management10,78711,30510,32810,32800%(977)-9%

Other(9)(69)000NA69100%

Total Revenue54,18357,57559,62959,729(100)-0%2,0554%

Expenses



Rec Boating3,8143,6093,9954,3954009%38711%

Cruise2,6742,6833,6374,21257514%95436%

Security000000%0NA

Other Maritime46272156456400%(157)-22%

Maintenance Expenses10,42011,41611,98011,98000%5635%



Total Maritime & EDD expenses26,14127,56629,78231,5801,7986%2,2168%

Enviromental & Sustainability1,1251,5882,4362,6221867%84753%

CDD Expenses748823855821(34)-4%334%

Police Expenses3,7564,0414,2974,4731764%2566%

Other Central Services 9,8039,46910,90511,1202152%1,43715%

Aviation Division20322120620600%(15)-7%

Total Central Services & Aviation15,63416,14118,69919,2425433%2,55816%

Envir Remed Liability389(455)000NA455100%

Total Expense42,16443,25248,48150,8222,3415%5,22912%

NOI Before Depreciation12,02014,32311,1498,9082,24125%(3,174)-22%

Depreciation17,41018,02217,81317,613(200)-1%(209)-1%

NOI After Depreciation(5,390)(3,699)(6,664)(8,705)2,04123%(2,965)-80%

2017201820192019

$ in 000's ActualActualForecastBudget

Ship Canal Fishing & Operations

Elliott Bay Fishing & Commercial Operations(100)Navy Cancellation at Seafair

Recreational Boating 0

Cruise

Bulk

Maritime Portfolio Management

Other

Total Revenue(100)

Expenses

Ship Canal Fishing & Operations(250)shring growth to 9%

Elliott Bay Fishing & Commercial Operations(150)

Rec Boating(400)follow trend

Cruise(575)Design Consultant (-750), External Façade (+175)

Security

Other Maritime

Maintenance Expenses

Portfolio Management(300)

Other ED Expenses(123)

Total Maritime & EDD expenses(1,798)

Enviromental & Sustainability(186)

CDD Expenses34

Police Expenses(176)

Other Central Services (215)

Aviation Division

Total Central Services & Aviation(543)

Envir Remed Liability

Total Expense(2,341)

NOI Before Depreciation2,241

Depreciation200

NOI After Depreciation2,041

Detail Full Year

%,LACTUAL,SYTD-2YR%,LACTUAL,SYTD-1YR%,LACTUAL,SYTD%,LBUDGETS,SYTD%,LBUDGETS,SALLYEAR

As of Reporting Date:

2018-06-302018-06-302017201820192019

Total YearYTDYTDYTDYTDBud VarChng from Prior YearTotal Year

Prior Yr ActPrior Yr ActYTD ActualYTD BudgetBudget$ in 000'sActualActualActualBudget$%$%Budget

Total MaritimeTotal Maritime

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5511Ship Canal Fishing & Operations2,854,2523,501,7571,299,2034,020,8634,020,863Ship Canal Fishing & Operations2,8543,5021,2994,021(2,722)-68%(2,203)-63%4,021

Elliott Bay Fishing & Commercial Operations6,443,0186,754,7841,324,7695,926,5775,926,577Elliott Bay Fishing & Commercial Operations6,4436,7551,3255,927(4,602)-78%(5,430)-80%5,927

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5600Recreational Boating 11,085,61812,034,7064,839,43112,794,44112,794,441Recreational Boating 11,08612,0354,83912,794(7,955)-62%(7,195)-60%12,794

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5405Cruise17,595,81018,879,88042,38422,405,68622,405,686Cruise17,59618,8804222,406(22,363)-100%(18,837)-100%22,406

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5115Bulk5,426,5645,167,0221,483,8034,254,0004,254,000Bulk5,4275,1671,4844,254(2,770)-65%(3,683)-71%4,254

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5910Maritime Portfolio Management10,786,82611,305,2773,155,03610,327,84410,327,844Maritime Portfolio Management10,78711,3053,15510,328(7,173)-69%(8,150)-72%10,328

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5500,NS6900,NS6400,NS6100,NS6113,NS6210,NS6250,NS6280,NS6800Other(8,661)(68,570)6,08700Other(9)(69)606NA75-109%0

Total Revenue54,183,42757,574,85612,150,71259,729,41159,729,411Total Revenue54,18357,57512,15159,729(47,579)-80%(45,424)-79%59,729

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO5000,NO6000Expenses22,357,65222,763,9685,044,24626,583,55926,583,559Expenses

%,FCLASS_FLD,TALL_SUBCLASSES,NS5511,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO0003,NO5511,NO5600,NO5500,NO5405,NO5115,NO6400,NO6100,NO6113,NO6800,NO6999Ship Canal Fishing & Operations2,010,8942,260,976482,7162,803,9792,803,979Ship Canal Fishing & Operations2,0112,2614832,8042,32183%(1,778)-79%2,804

%,FCLASS_FLD,TALL_SUBCLASSES,NS5600,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO0003,NO5511,NO5600,NO5500,NO5405,NO5115,NO6400,NO6100,NO6113,NO6800,NO6999Elliott Bay Fishing & Commercial Operations2,587,6462,529,544518,8742,628,6612,628,661Elliott Bay Fishing & Commercial Operations2,5882,5305192,6292,11080%(2,011)-79%2,629

%,FCLASS_FLD,TALL_SUBCLASSES,NS5405,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO0003,NO5511,NO5600,NO5500,NO5405,NO5115,NO6400,NO6100,NO6113,NO6800,NO6999Rec Boating3,814,2513,608,597996,2114,395,4454,395,445Rec Boating3,8143,6099964,3953,39977%(2,612)-72%4,395

%,FCLASS_FLD,TALL_SUBCLASSES,NS5500,NS5115,NS5910,NS6900,NS6400,NS6100,NS6113,NS6210,NS6250,NS6280,NS6800,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO0003,NO5511,NO5600,NO5500,NO5405,NO5115,NO6400,NO6100,NO6113,NO6800,NO6999Cruise2,674,0182,682,901497,5494,212,1024,212,102Cruise2,6742,6834984,2123,71588%(2,185)-81%4,212

Security0025300Security0000(0)-1149036%0ERROR:#DIV/0!0

Other Maritime461,751720,880152,334563,835563,835Other Maritime46272115256441273%(569)-79%564

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO6280Maintenance Expenses10,420,39111,416,2552,396,50411,979,53711,979,537Maintenance Expenses10,42011,4162,39711,9809,58380%(9,020)-79%11,980

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO5900Portfolio Management3,506,9983,726,450978,0484,278,7994,278,799Portfolio Management3,5073,7269784,2793,30177%(2,748)-74%4,279

Other ED Expenses664,820620,578124,569717,510717,510Other ED Expenses66562112571859383%(496)-80%718

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO7000ALL ED Expenses4,171,8184,347,0291,102,6174,996,3094,996,309ALL ED Expenses

Total Maritime & EDD Expenses26,140,76927,566,1826,147,05831,579,86831,579,868Total Maritime & EDD Expenses26,14127,5666,14731,58025,43381%(21,419)-78%31,580

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO2700Enviromental & Sustainability1,124,9871,588,112456,3322,621,5772,621,577Enviromental & Sustainability1,1251,5884562,6222,16583%(1,132)-71%2,622

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO9000CDD Expenses747,769822,694161,531821,300821,300CDD Expenses74882316282166080%(661)-80%821

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO4300Police Expenses3,755,6554,040,738880,5194,472,6444,472,644Police Expenses3,7564,0418814,4733,59280%(3,160)-78%4,473

Other Central Services 9,803,2539,468,5902,433,22411,120,37711,120,377Other Central Services 9,8039,4692,43311,1208,68778%(7,035)-74%11,120

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO3000Aviation Division202,717220,78164,026205,890205,890Aviation Division2032216420614269%(157)-71%206

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO1000,NO3000,NO8000Corporate Expenses - ALL15,634,38216,140,9153,995,63219,241,78819,241,788Corporate Expenses - ALL

Total Central Services & Aviation15,634,38216,140,9153,995,63219,241,78819,241,788Total Central Services & Aviation15,63416,1413,99619,24215,24679%(12,145)-75%19,242

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO6800Envir Remed Liability388,572(455,185)1100Envir Remed Liability389(455)00(0)NA455-100%0

Total Expense42,163,72443,251,91210,142,70150,821,65550,821,655Total Expense42,16443,25210,14350,82240,67980%(33,109)-77%50,822

NOI Before Depreciation12,019,70414,322,9442,008,0118,907,7558,907,755NOI Before Depreciation12,02014,3232,0088,908(6,900)-77%(12,315)-86%8,908

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000CDepreciation17,409,74818,022,0964,509,39517,612,65717,612,657Depreciation17,41018,0224,50917,61313,10374%(13,513)-75%17,613

NOI After Depreciation(5,390,044)(3,699,152)(2,501,384)(8,704,901)(8,704,901)NOI After Depreciation(5,390)(3,699)(2,501)(8,705)6,204-71%1,198-32%(8,705)

Net Operating Income Before Depreciation by BusinessNet Operating Income Before Depreciation by Business

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5511Ship Canal Fishing & Operations(2,410,609)(2,073,165)109,461(2,298,433)(2,298,433)Ship Canal Fishing & Operations(2,411)(2,073)109(2,298)2,408-105%2,183-105%(2,298)

Elliott Bay Fishing & Commercial Operations959,433624,458157,078(268,570)(268,570)Elliott Bay Fishing & Commercial Operations959624157(269)

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5600Recreational Boating 1,305,1962,124,7092,426,8471,044,8971,044,897Recreational Boating 1,3052,1252,4271,0451,382132%30214%1,045

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5405Cruise8,599,0899,029,404(2,356,877)10,388,18710,388,187Cruise8,5999,029(2,357)10,388(12,745)-123%(11,386)-126%10,388

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5115Bulk4,029,6063,429,6621,121,9042,443,7722,443,772Bulk4,0303,4301,1222,444(1,322)-54%(2,308)-67%2,444

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5910Maritime Portfolio166,5381,097,524739,560(1,653,868)(1,653,868)Maritime Portfolio1671,098740(1,654)2,393-145%(358)-33%(1,654)

All Other(629,678)90,352(189,756)(748,229)(748,229)All Other(630)90(190)(748)558-75%(280)-310%(748)

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5000Total Maritime12,019,57614,322,9442,008,2168,907,7558,907,755Total Maritime12,02014,3232,0088,908(6,900)-77%(12,315)-86%8,908

Check128(0)(205)(0)(0)

Net Operating Income Before Depreciation by Location Net Operating Income Before Depreciation by Location

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,V5522,V5525,V5523Fishermen's Terminal(3,077,678)(2,747,369)(49,297)(3,633,581)(3,633,581)Fishermen's Terminal(3,078)(2,747)(49)(3,634)3,584-99%2,698-98%(3,634)

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,V5542,V5543Maritime Industrial Center(173,443)(206,472)27,628(307,678)(307,678)Maritime Industrial Center(173)(206)28(308)335-109%234-113%(308)

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,V5621,V5565Shilshole Bay Marina2,086,7482,622,8742,523,0691,726,8681,726,868Shilshole Bay Marina2,0872,6232,5231,72779646%(100)-4%1,727

Maritime DivisionPerformance Report

&F &A&D

Detail YTD



2018-06-302018-06-302017201820192019




%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5511Ship Canal Fishing & Operations1,455,6401,610,0532,004,4332,010,4314,020,863Ship Canal Fishing & Operations1,4561,6102,0042,010(6)-0%39424%4,021

Elliott Bay Fishing & Commercial Operations2,984,0913,012,3543,066,8672,961,3815,926,577Elliott Bay Fishing & Commercial Operations2,9843,0123,0672,9611054%552%5,927

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5600Recreational Boating 5,438,3596,067,7196,227,5786,358,11012,794,441Recreational Boating 5,4386,0686,2286,358(131)-2%1603%12,794

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5405Cruise6,324,6506,805,5108,473,1089,113,85722,405,686Cruise6,3256,8068,4739,114(641)-7%1,66825%22,406

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5115Bulk3,041,7143,122,8672,566,9542,422,8004,254,000Bulk3,0423,1232,5672,4231446%(556)-18%4,254

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5910Maritime Portfolio Management5,266,7295,628,0515,018,9685,051,74210,327,844Maritime Portfolio Management5,2675,6285,0195,052(33)-1%(609)-11%10,328

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5500,NS6900,NS6400,NS6100,NS6113,NS6210,NS6250,NS6280,NS6800Other14,19810,92210,01000Other141110010NA(1)-8%0

Total Revenue24,525,38126,257,47627,367,91927,918,32259,729,411Total Revenue24,52526,25727,36827,918(550)-2%1,1104%59,729


%,FCLASS_FLD,TALL_SUBCLASSES,NS5511,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO0003,NO5511,NO5600,NO5500,NO5405,NO5115,NO6400,NO6100,NO6113,NO6800,NO6999Ship Canal Fishing & Operations1,020,6321,183,2091,226,8961,493,3592,803,979Ship Canal Fishing & Operations1,0211,1831,2271,49326618%444%2,804

%,FCLASS_FLD,TALL_SUBCLASSES,NS5600,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO0003,NO5511,NO5600,NO5500,NO5405,NO5115,NO6400,NO6100,NO6113,NO6800,NO6999Elliott Bay Fishing & Commercial Operations1,289,1031,315,0911,202,1321,407,2912,628,661Elliott Bay Fishing & Commercial Operations1,2891,3151,2021,40720515%(113)-9%2,629

%,FCLASS_FLD,TALL_SUBCLASSES,NS5405,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO0003,NO5511,NO5600,NO5500,NO5405,NO5115,NO6400,NO6100,NO6113,NO6800,NO6999Rec Boating1,857,3651,951,9002,027,0862,311,8574,395,445Rec Boating1,8571,9522,0272,31228512%754%4,395

%,FCLASS_FLD,TALL_SUBCLASSES,NS5500,NS5115,NS5910,NS6900,NS6400,NS6100,NS6113,NS6210,NS6250,NS6280,NS6800,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO0003,NO5511,NO5600,NO5500,NO5405,NO5115,NO6400,NO6100,NO6113,NO6800,NO6999Cruise426,7681,135,511997,9922,306,6804,212,102Cruise4271,1369982,3071,30957%(138)-12%4,212

Security00000Security00000NA0NA0

Other Maritime220,695365,333280,303269,673563,835Other Maritime221365280270(11)-4%(85)-23%564

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO6280Maintenance Expenses4,658,1665,575,9495,520,8636,226,83011,979,537Maintenance Expenses4,6585,5765,5216,22770611%(55)-1%11,980

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO5900Portfolio Management1,769,9032,031,0762,136,4052,402,0004,278,799Portfolio Management1,7702,0312,1362,40226611%1055%4,279



Total Maritime & EDD Expenses11,595,48613,877,74813,623,91216,773,21831,579,868Total Maritime & EDD Expenses11,59513,87813,62416,7733,14919%(254)-2%31,580

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO2700Enviromental & Sustainability598,107518,9491,081,9971,293,5792,621,577Enviromental & Sustainability5985191,0821,29421216%563108%2,622


%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO4300Police Expenses1,888,9422,168,8491,987,5932,239,9894,472,644Police Expenses1,8892,1691,9882,24025211%(181)-8%4,473

Other Central Services 4,724,8684,706,8695,055,4165,461,43111,120,377Other Central Services 4,7254,7075,0555,4614067%3497%11,120

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO3000Aviation Division92,921105,372135,113106,933205,890Aviation Division93105135107(28)-26%3028%206


Total Central Services & Aviation7,723,9657,937,2978,675,4099,522,10019,241,788Total Central Services & Aviation7,7247,9378,6759,5228479%7389%19,242

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO6800Envir Remed Liability370,590(98,826)10,87000Envir Remed Liability371(99)110(11)NA110-111%0

Total Expense19,690,04121,716,21922,310,19126,295,31850,821,655Total Expense19,69021,71622,31026,2953,98515%5943%50,822

NOI Before Depreciation4,835,3394,541,2585,057,7281,623,0058,907,755NOI Before Depreciation4,8354,5415,0581,6233,435212%51611%8,908

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000CDepreciation8,441,5258,822,6308,910,5688,803,75617,612,657Depreciation8,4428,8238,9118,804(107)-1%881%17,613

NOI After Depreciation(3,606,186)(4,281,372)(3,852,840)(7,180,752)(8,704,901)NOI After Depreciation(3,606)(4,281)(3,853)(7,181)3,328-46%429-10%(8,705)


%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5511Ship Canal Fishing & Operations(1,161,644)(1,148,366)(800,417)(1,214,531)(2,298,433)Ship Canal Fishing & Operations(1,162)(1,148)(800)(1,215)414-34%348-30%(2,298)


%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5600Recreational Boating 791,455982,3711,044,692262,9661,044,897Recreational Boating 7919821,045263782297%626%1,045

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5405Cruise2,829,2482,093,4773,216,3012,920,02210,388,187Cruise2,8292,0933,2162,92029610%1,12354%10,388

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5115Bulk2,388,2622,249,3251,736,7251,533,6612,443,772Bulk2,3882,2491,7371,53420313%(513)-23%2,444

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5910Maritime Portfolio111,242390,634(435,122)(1,225,089)(1,653,868)Maritime Portfolio111391(435)(1,225)790-64%(826)-211%(1,654)

All Other(477,785)(39,383)(219,093)(371,874)(748,229)All Other(478)(39)(219)(372)153-41%(180)456%(748)

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5000Total Maritime4,835,3394,541,2585,057,7281,623,0058,907,755Total Maritime4,8354,5415,0581,6233,435212%51611%8,908

Check000(0)(0)


%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,V5522,V5525,V5523Fishermen's Terminal(1,538,827)(1,412,966)(1,464,921)(2,001,600)(3,633,581)Fishermen's Terminal(1,539)(1,413)(1,465)(2,002)537-27%(52)4%(3,634)

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,V5542,V5543Maritime Industrial Center(74,081)(100,751)(108,727)(226,386)(307,678)Maritime Industrial Center(74)(101)(109)(226)118-52%(8)8%(308)

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,V5621,V5565Shilshole Bay Marina1,131,9811,285,5281,421,854694,5681,726,868Shilshole Bay Marina1,1321,2861,422695727105%13611%1,727

(16,077.65)


&F &A&D

Summary PPT




Total Revenues24,52526,25727,36827,918(550)-2%1,1104%

Total Operating Expenses19,69021,71622,31026,2953,98515%5943%

Net Operating Income4,8354,5415,0581,6233,435212%51611%

Depreciation8,4428,8238,9118,804(107)-1%881%

Net Income(3,606)(4,281)(3,853)(7,181)3,32846%42910%

Gene

Summary Word Doc

Fav (UnFav) Incr (Decr)


$ in 000'sActualActualForecastBudget$%$%

Revenues:

Operating Revenue54,18357,57559,62959,729(100)-0%2,0554%

Total Revenues54,18357,57559,62959,729(100)-0%2,0554%

Total Operating Expenses42,16443,25248,48150,8222,3415%5,22912%

Net Operating Income12,02014,32311,1498,9082,24125%(3,174)22%

Capital Expenditures 5,74620,48916,74317,5277844%(3,746)-18%

NOI by Business Unit


2017 YTD2018 YTD2019 Year-to-Date Budget Variance Change from 2018

$ in 000's Actual Actual ActualBudget$%$%

Ship Canal Fishing & Operations(1,162)(1,148)(800)(1,215)41434%34830%

Elliott Bay Fishing & Commercial Operations35513515(282)797282%501 NA

Recreational Boating 7919821,045263782297%626%

Cruise2,8292,0933,2162,920296-10%1,12354%

Bulk2,3882,2491,7371,53420313%(513)-23%

Maritime Portfolio111391(435)(1,225)79064%(826)-211%

All Other(478)(39)(219)(372)15341%(180)-456%

Total Maritime4,8354,5415,0581,6233,435-212%516-11%

Sheet1

$ in 000's2018 YTD20182018 Budget Variance

ActualForecastBudget$%

Econ Dev8246,4736,149(324)-5%

Sheet2

Maritime Division Financial Trends

Operateing profit forecasted over $2M higher than budget26

2019 Forecast Drivers:

Revenue1. Grain Terminal uncertainty.2. Cruise occupancy and unplanned

visits.3. Utilization of Elliott Bay moorage

and dockage facilities.

Expense1. Non-capitalizable consulting and

outside services related to new cruise terminal/berth.

2. Port Valet service costs.3. Tenant improvement costs.4. Central Services allocation.5. Maintenance spend.

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2014 2015 2016 2017 2018 2019Forecast

2019Budget

In 000s

Depreciation

Allocation

Operating Expense

Revenue

Cruise Financial Trends

27

Agreements and schedule changes driving revenue from Q2 to Q3

-

5,000

10,000

15,000

20,000

25,000

2016 2017 2018 Actual 2019 Forecast 2019 Budget

In 000s

Depreciation

Allocation

Operating Expense

Revenue


Revenue1. Will occupancy continue to

exceed 104% with bigger ships in Q3.

2. Unplanned port of call visits.

Expense1. Non-capitalizable consulting

and outside services related to new cruise terminal/berth.

2. Port Valet service costs.3. Maintenance spend.4. Change of allocation

methodology for shared properties.

• Individual business lines forecast to budget as of Q2 2019.

Recreational Boating Financial Trends

28

Tracking to budget

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2016 2017 2018 2019 Forecast 2019 Budget

In 000s

Depreciation

Allocation

Operating Expense

Revenue


Revenue1. Utilization of guest

moorage.2. Occupancy rates.

Expense1. Maintenance costs.2. Open staffing positions.

• Individual business lines forecast to budget as of Q2 2019. • Includes Shilshole Bay Marina, Bell Harbor Marina, and Harbor Island Marina.

Ship Canal Fishing & Ops Trends

29

Integrating Salmon Bay Marina

• Individual business lines forecast to budget as of Q2 2019. • Includes Fishermen’s Terminal, Maritime Industrial Center, and Salmon Bay Marina.

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2016 2017 2018 2019 Forecast 2019 Budget

In 000s

Depreciation

Allocation

Operating Expense

Revenue


Revenue1. Backfill with recreational

vessels while Fishermen’s Terminal fishing vessels at sea.

2. Events such as the Seattle Boat Show.

Expense1. Maintenance, both planned

and unplanned.2. Remediation tied to

Fishermen’s Terminal redevelopment.

3. Unfilled positions.

Elliott Bay Fishing & Commercial Ops Trends

30

Rate increases offset by less utilization than expected

• Individual business lines forecast to budget as of Q2 2019.• Includes Terminal 91 (waterside non-Cruise), Terminal 46 Docks, Kellogg Island, Terminal 25, Terminal 18

Dolphins, Pier 69 Vessels, Pier 28 Docks, Pier 34 Dolphins, Pier 2 Docks, and Terminal 108 Moorage.

-

2,000

4,000

6,000

8,000

10,000

12,000

2016 2017 2018 2019 Forecast 2019 Budget

In 000s

Depreciation

Allocation

Operating Expense

Revenue


Revenue1. Long term occupancy by large

fishing vessels at T91.2. Event moorage.3. Utilization of smaller

moorage/dockage on the south end and up the Duwamish.

Expense1. Maintenance, both planned

and unplanned.2. Security and allocations.

Maritime Portfolio Management Trends

31

Leasing closer to market and managing costs

• Individual business lines forecast to budget as of Q2 2019.• Includes uplands of Shilshole Bay Marina, Terminal 91 (Industrial), Fishermen’s Terminal, Maritime Industrial Center,

Salmon Bay Marina, T-115, T-108, and T-106.

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2016 2017 2018 2019 Forecast 2019 Budget

In 000s

Depreciation

Allocation

Operating Expense

Revenue


Revenue1. Ability to backfill leases at

T106.2. Filling the C3 building at the

Maritime Industrial Center.

Expense1. Non-capitalizable tenant

improvements.2. Maintenance spend.3. Change of allocation

methodology for shared properties.

Grain Terminal Goal: Net Income Maximized

32

Navigating volatility of tariffs and soybean exports

-

1,000

2,000

3,000

4,000

5,000

6,000

2016 2017 2018 2019 Forecast 2019 Budget

In 000s

Depreciation

Allocation

Operating Expense

Revenue


Revenue1. Impact of tariffs.2. Weather.

Expense1. Maintenance and

allocations.

• Individual business lines forecast to budget as of Q2 2019.

Northwest Seaport Alliance Summary

33

Favorable Net Income to budget, but tariffs impacting Y/Y growth

NWSA TEU DataYTD Volumes up, but Tariffs are the wildcard. As trade shifts from China to SE Asia, there is risk volumes could shift to East Coast ports due to the shorter transit.

Exports:• YTD May 2018, China was #1 export partner, YTD May

2019, China is #3 with export TEU volumes down 34%. Biggest declines in hay/forage products, waste paper and whey/milk products.

• India exports are also impacted by trade war, and exports there are also down 34%. Their ranking went from #5 to #6. Biggest declines in apples (5,792 TEUs!) and waste paper.

Imports• Imports from China are down 0.2% YTD, -718 TEUs.• Imports from other countries are up (Japan +12%,

Taiwan +27%, Vietnam +27%, Thailand +55% (growth on smaller volumes)

Expenses – Growth from 2018 driven by one-time crane removal costs at T18 & T46 along with volume related costs.

Revenue - Non-container business $3.1M favorable to budget from higher than expected military and auto volumes.

2018 YTD Budget Variance Change from 2018$ in 000's Actual Actual Budget $ % $ %

Revenue 92,371 98,997 97,497 1,500 2% 6,626 7%Operating expense 41,151 51,212 54,620 3,408 6% 10,061 24%

Operating Income 51,220 47,785 42,877 4,908 11% (3,435) -7%

Interest Income 567 856 700 (156) -22% 289 51%Market Value Adjustment (179) 330 0 (330) NA 509 -284%

Net Interest Income 388 1,186 700 486 69% 798 206%

Non Operating Income (Expense) 31 (322) (1,026) (704) 69% (353) -1139%Grant Income 50 1,246 1,695 449 26% 1,196 2392%

Net Income 51,689 49,895 44,246 5,649 13% (1,794) -3%

Cargo TEUs 1,779,706 1,915,249 135,543 8%Cargo Volume (Metric Tons) 13,963,966 15,129,071 1,165,105 8%

Note: Results may differ slightly from NWSA site due to rounding differences


Alliance


2018 YTD2019 Year-to-DateBudget VarianceChange from 2018

$ in 000's Actual ActualBudget $ %$%

Revenue92,37198,99797,4971,5002%6,6267%

Operating expense41,15151,21254,6203,4086%10,06124%

Operating Income51,22047,78542,8774,90811%(3,435)-7%

Security0000NA0NA

Interest Income567856700(156)-22%28951%

Market Value Adjustment(179)3300(330)NA509-284%

Net Interest Income3881,18670048669%798206%

Non Operating Income (Expense)31(322)(1,026)(704)69%(353)-1139%

Grant Income501,2461,69544926%1,1962392%

Net Income51,68949,89544,2465,64913%(1,794)-3%

Cargo TEUs1,779,7061,915,249135,5438%

Cargo Volume (Metric Tons)13,963,96615,129,0711,165,1058%

Note: Results may differ slightly from NWSA site due to rounding differences

YTD Results




Ship Canal Fishing & Operations1,4561,6102,0042,010(6)-0%39424%

Elliott Bay Fishing & Commercial Operations2,9843,0123,0672,9611054%552%

Recreational Boating 5,4386,0686,2286,358(131)-2%1603%

Cruise6,3256,8068,4739,114(641)-7%1,66825%

Bulk3,0423,1232,5672,4231446%(556)-18%

Maritime Portfolio Management5,2675,6285,0195,052(33)-1%(609)-11%

Other141110010NA(1)-8%

Total Revenue24,52526,25727,36827,918(550)-2%1,1104%

Expenses



Rec Boating1,8571,9522,0272,31228512%754%

Cruise4271,1369982,3071,30957%(138)-12%

Security00000NA0NA

Other Maritime221365280270(11)-4%(85)-23%

Maintenance Expenses4,6585,5765,5216,22770611%(55)-1%



Total Maritime & EDD expenses11,59513,87813,62416,7733,14919%(254)-2%

Enviromental & Sustainability5985191,0821,29421216%563108%

CDD Expenses41943741542051%(22)-5%

Police Expenses1,8892,1691,9882,24025211%(181)-8%

Other Central Services 4,7254,7075,0555,4614067%3497%

Aviation Division93105135107(28)-26%3028%

Total Central Services & Aviation7,7247,9378,6759,5228479%7389%

Envir Remed Liability371(99)110(11)NA110-111%

Total Expense19,69021,71622,31026,2953,98515%5943%

NOI Before Depreciation4,8354,5415,0581,6233,435212%51611%

Depreciation8,4428,8238,9118,804(107)-1%881%

NOI After Depreciation(3,606)(4,281)(3,853)(7,181)3,32846%42910%

Forecast



$ in 000's ActualActualForecastBudget$%$%


Elliott Bay Fishing & Commercial Operations6,4436,7555,8275,927(100)-2%(928)-14%

Recreational Boating 11,08612,03512,79412,79400%7606%

Cruise17,59618,88022,40622,40600%3,52619%

Bulk5,4275,1674,2544,25400%(913)-18%

Maritime Portfolio Management10,78711,30510,32810,32800%(977)-9%

Other(9)(69)000NA69100%

Total Revenue54,18357,57559,62959,729(100)-0%2,0554%

Expenses



Rec Boating3,8143,6093,9954,3954009%38711%

Cruise2,6742,6833,6374,21257514%95436%

Security000000%0NA

Other Maritime46272156456400%(157)-22%

Maintenance Expenses10,42011,41611,98011,98000%5635%



Total Maritime & EDD expenses26,14127,56629,78231,5801,7986%2,2168%

Enviromental & Sustainability1,1251,5882,4362,6221867%84753%

CDD Expenses748823855821(34)-4%334%

Police Expenses3,7564,0414,2974,4731764%2566%

Other Central Services 9,8039,46910,90511,1202152%1,43715%

Aviation Division20322120620600%(15)-7%

Total Central Services & Aviation15,63416,14118,69919,2425433%2,55816%

Envir Remed Liability389(455)000NA455100%

Total Expense42,16443,25248,48150,8222,3415%5,22912%

NOI Before Depreciation12,02014,32311,1498,9082,24125%(3,174)-22%

Depreciation17,41018,02217,81317,613(200)-1%(209)-1%

NOI After Depreciation(5,390)(3,699)(6,664)(8,705)2,04123%(2,965)-80%

2017201820192019

$ in 000's ActualActualForecastBudget

Ship Canal Fishing & Operations

Elliott Bay Fishing & Commercial Operations(100)Navy Cancellation at Seafair

Recreational Boating 0

Cruise

Bulk

Maritime Portfolio Management

Other

Total Revenue(100)

Expenses

Ship Canal Fishing & Operations(250)shring growth to 9%

Elliott Bay Fishing & Commercial Operations(150)

Rec Boating(400)follow trend

Cruise(575)Design Consultant (-750), External Façade (+175)

Security

Other Maritime

Maintenance Expenses

Portfolio Management(300)

Other ED Expenses(123)

Total Maritime & EDD expenses(1,798)

Enviromental & Sustainability(186)

CDD Expenses34

Police Expenses(176)

Other Central Services (215)

Aviation Division

Total Central Services & Aviation(543)

Envir Remed Liability

Total Expense(2,341)

NOI Before Depreciation2,241

Depreciation200

NOI After Depreciation2,041

Detail Full Year



2018-06-302018-06-302017201820192019




%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5511Ship Canal Fishing & Operations2,854,2523,501,7571,299,2034,020,8634,020,863Ship Canal Fishing & Operations2,8543,5021,2994,021(2,722)-68%(2,203)-63%4,021

Elliott Bay Fishing & Commercial Operations6,443,0186,754,7841,324,7695,926,5775,926,577Elliott Bay Fishing & Commercial Operations6,4436,7551,3255,927(4,602)-78%(5,430)-80%5,927

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5600Recreational Boating 11,085,61812,034,7064,839,43112,794,44112,794,441Recreational Boating 11,08612,0354,83912,794(7,955)-62%(7,195)-60%12,794

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5405Cruise17,595,81018,879,88042,38422,405,68622,405,686Cruise17,59618,8804222,406(22,363)-100%(18,837)-100%22,406

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5115Bulk5,426,5645,167,0221,483,8034,254,0004,254,000Bulk5,4275,1671,4844,254(2,770)-65%(3,683)-71%4,254

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5910Maritime Portfolio Management10,786,82611,305,2773,155,03610,327,84410,327,844Maritime Portfolio Management10,78711,3053,15510,328(7,173)-69%(8,150)-72%10,328

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5500,NS6900,NS6400,NS6100,NS6113,NS6210,NS6250,NS6280,NS6800Other(8,661)(68,570)6,08700Other(9)(69)606NA75-109%0

Total Revenue54,183,42757,574,85612,150,71259,729,41159,729,411Total Revenue54,18357,57512,15159,729(47,579)-80%(45,424)-79%59,729


%,FCLASS_FLD,TALL_SUBCLASSES,NS5511,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO0003,NO5511,NO5600,NO5500,NO5405,NO5115,NO6400,NO6100,NO6113,NO6800,NO6999Ship Canal Fishing & Operations2,010,8942,260,976482,7162,803,9792,803,979Ship Canal Fishing & Operations2,0112,2614832,8042,32183%(1,778)-79%2,804

%,FCLASS_FLD,TALL_SUBCLASSES,NS5600,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO0003,NO5511,NO5600,NO5500,NO5405,NO5115,NO6400,NO6100,NO6113,NO6800,NO6999Elliott Bay Fishing & Commercial Operations2,587,6462,529,544518,8742,628,6612,628,661Elliott Bay Fishing & Commercial Operations2,5882,5305192,6292,11080%(2,011)-79%2,629

%,FCLASS_FLD,TALL_SUBCLASSES,NS5405,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO0003,NO5511,NO5600,NO5500,NO5405,NO5115,NO6400,NO6100,NO6113,NO6800,NO6999Rec Boating3,814,2513,608,597996,2114,395,4454,395,445Rec Boating3,8143,6099964,3953,39977%(2,612)-72%4,395

%,FCLASS_FLD,TALL_SUBCLASSES,NS5500,NS5115,NS5910,NS6900,NS6400,NS6100,NS6113,NS6210,NS6250,NS6280,NS6800,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO0003,NO5511,NO5600,NO5500,NO5405,NO5115,NO6400,NO6100,NO6113,NO6800,NO6999Cruise2,674,0182,682,901497,5494,212,1024,212,102Cruise2,6742,6834984,2123,71588%(2,185)-81%4,212

Security0025300Security0000(0)-1149036%0ERROR:#DIV/0!0

Other Maritime461,751720,880152,334563,835563,835Other Maritime46272115256441273%(569)-79%564

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO6280Maintenance Expenses10,420,39111,416,2552,396,50411,979,53711,979,537Maintenance Expenses10,42011,4162,39711,9809,58380%(9,020)-79%11,980

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO5900Portfolio Management3,506,9983,726,450978,0484,278,7994,278,799Portfolio Management3,5073,7269784,2793,30177%(2,748)-74%4,279



Total Maritime & EDD Expenses26,140,76927,566,1826,147,05831,579,86831,579,868Total Maritime & EDD Expenses26,14127,5666,14731,58025,43381%(21,419)-78%31,580

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO2700Enviromental & Sustainability1,124,9871,588,112456,3322,621,5772,621,577Enviromental & Sustainability1,1251,5884562,6222,16583%(1,132)-71%2,622


%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO4300Police Expenses3,755,6554,040,738880,5194,472,6444,472,644Police Expenses3,7564,0418814,4733,59280%(3,160)-78%4,473

Other Central Services 9,803,2539,468,5902,433,22411,120,37711,120,377Other Central Services 9,8039,4692,43311,1208,68778%(7,035)-74%11,120



Total Central Services & Aviation15,634,38216,140,9153,995,63219,241,78819,241,788Total Central Services & Aviation15,63416,1413,99619,24215,24679%(12,145)-75%19,242

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO6800Envir Remed Liability388,572(455,185)1100Envir Remed Liability389(455)00(0)NA455-100%0

Total Expense42,163,72443,251,91210,142,70150,821,65550,821,655Total Expense42,16443,25210,14350,82240,67980%(33,109)-77%50,822

NOI Before Depreciation12,019,70414,322,9442,008,0118,907,7558,907,755NOI Before Depreciation12,02014,3232,0088,908(6,900)-77%(12,315)-86%8,908

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000CDepreciation17,409,74818,022,0964,509,39517,612,65717,612,657Depreciation17,41018,0224,50917,61313,10374%(13,513)-75%17,613

NOI After Depreciation(5,390,044)(3,699,152)(2,501,384)(8,704,901)(8,704,901)NOI After Depreciation(5,390)(3,699)(2,501)(8,705)6,204-71%1,198-32%(8,705)


%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5511Ship Canal Fishing & Operations(2,410,609)(2,073,165)109,461(2,298,433)(2,298,433)Ship Canal Fishing & Operations(2,411)(2,073)109(2,298)2,408-105%2,183-105%(2,298)


%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5600Recreational Boating 1,305,1962,124,7092,426,8471,044,8971,044,897Recreational Boating 1,3052,1252,4271,0451,382132%30214%1,045

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5405Cruise8,599,0899,029,404(2,356,877)10,388,18710,388,187Cruise8,5999,029(2,357)10,388(12,745)-123%(11,386)-126%10,388

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5115Bulk4,029,6063,429,6621,121,9042,443,7722,443,772Bulk4,0303,4301,1222,444(1,322)-54%(2,308)-67%2,444

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5910Maritime Portfolio166,5381,097,524739,560(1,653,868)(1,653,868)Maritime Portfolio1671,098740(1,654)2,393-145%(358)-33%(1,654)

All Other(629,678)90,352(189,756)(748,229)(748,229)All Other(630)90(190)(748)558-75%(280)-310%(748)

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5000Total Maritime12,019,57614,322,9442,008,2168,907,7558,907,755Total Maritime12,02014,3232,0088,908(6,900)-77%(12,315)-86%8,908

Check128(0)(205)(0)(0)


%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,V5522,V5525,V5523Fishermen's Terminal(3,077,678)(2,747,369)(49,297)(3,633,581)(3,633,581)Fishermen's Terminal(3,078)(2,747)(49)(3,634)3,584-99%2,698-98%(3,634)

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,V5542,V5543Maritime Industrial Center(173,443)(206,472)27,628(307,678)(307,678)Maritime Industrial Center(173)(206)28(308)335-109%234-113%(308)

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,V5621,V5565Shilshole Bay Marina2,086,7482,622,8742,523,0691,726,8681,726,868Shilshole Bay Marina2,0872,6232,5231,72779646%(100)-4%1,727


&F &A&D

Detail YTD



2018-06-302018-06-302017201820192019




%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5511Ship Canal Fishing & Operations1,455,6401,610,0532,004,4332,010,4314,020,863Ship Canal Fishing & Operations1,4561,6102,0042,010(6)-0%39424%4,021

Elliott Bay Fishing & Commercial Operations2,984,0913,012,3543,066,8672,961,3815,926,577Elliott Bay Fishing & Commercial Operations2,9843,0123,0672,9611054%552%5,927

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5600Recreational Boating 5,438,3596,067,7196,227,5786,358,11012,794,441Recreational Boating 5,4386,0686,2286,358(131)-2%1603%12,794

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5405Cruise6,324,6506,805,5108,473,1089,113,85722,405,686Cruise6,3256,8068,4739,114(641)-7%1,66825%22,406

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5115Bulk3,041,7143,122,8672,566,9542,422,8004,254,000Bulk3,0423,1232,5672,4231446%(556)-18%4,254

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5910Maritime Portfolio Management5,266,7295,628,0515,018,9685,051,74210,327,844Maritime Portfolio Management5,2675,6285,0195,052(33)-1%(609)-11%10,328

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5500,NS6900,NS6400,NS6100,NS6113,NS6210,NS6250,NS6280,NS6800Other14,19810,92210,01000Other141110010NA(1)-8%0

Total Revenue24,525,38126,257,47627,367,91927,918,32259,729,411Total Revenue24,52526,25727,36827,918(550)-2%1,1104%59,729


%,FCLASS_FLD,TALL_SUBCLASSES,NS5511,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO0003,NO5511,NO5600,NO5500,NO5405,NO5115,NO6400,NO6100,NO6113,NO6800,NO6999Ship Canal Fishing & Operations1,020,6321,183,2091,226,8961,493,3592,803,979Ship Canal Fishing & Operations1,0211,1831,2271,49326618%444%2,804

%,FCLASS_FLD,TALL_SUBCLASSES,NS5600,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO0003,NO5511,NO5600,NO5500,NO5405,NO5115,NO6400,NO6100,NO6113,NO6800,NO6999Elliott Bay Fishing & Commercial Operations1,289,1031,315,0911,202,1321,407,2912,628,661Elliott Bay Fishing & Commercial Operations1,2891,3151,2021,40720515%(113)-9%2,629

%,FCLASS_FLD,TALL_SUBCLASSES,NS5405,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO0003,NO5511,NO5600,NO5500,NO5405,NO5115,NO6400,NO6100,NO6113,NO6800,NO6999Rec Boating1,857,3651,951,9002,027,0862,311,8574,395,445Rec Boating1,8571,9522,0272,31228512%754%4,395

%,FCLASS_FLD,TALL_SUBCLASSES,NS5500,NS5115,NS5910,NS6900,NS6400,NS6100,NS6113,NS6210,NS6250,NS6280,NS6800,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO0003,NO5511,NO5600,NO5500,NO5405,NO5115,NO6400,NO6100,NO6113,NO6800,NO6999Cruise426,7681,135,511997,9922,306,6804,212,102Cruise4271,1369982,3071,30957%(138)-12%4,212

Security00000Security00000NA0NA0

Other Maritime220,695365,333280,303269,673563,835Other Maritime221365280270(11)-4%(85)-23%564


%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO5900Portfolio Management1,769,9032,031,0762,136,4052,402,0004,278,799Portfolio Management1,7702,0312,1362,40226611%1055%4,279



Total Maritime & EDD Expenses11,595,48613,877,74813,623,91216,773,21831,579,868Total Maritime & EDD Expenses11,59513,87813,62416,7733,14919%(254)-2%31,580

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO2700Enviromental & Sustainability598,107518,9491,081,9971,293,5792,621,577Enviromental & Sustainability5985191,0821,29421216%563108%2,622


%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO4300Police Expenses1,888,9422,168,8491,987,5932,239,9894,472,644Police Expenses1,8892,1691,9882,24025211%(181)-8%4,473

Other Central Services 4,724,8684,706,8695,055,4165,461,43111,120,377Other Central Services 4,7254,7075,0555,4614067%3497%11,120

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO3000Aviation Division92,921105,372135,113106,933205,890Aviation Division93105135107(28)-26%3028%206


Total Central Services & Aviation7,723,9657,937,2978,675,4099,522,10019,241,788Total Central Services & Aviation7,7247,9378,6759,5228479%7389%19,242

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO6800Envir Remed Liability370,590(98,826)10,87000Envir Remed Liability371(99)110(11)NA110-111%0


NOI Before Depreciation4,835,3394,541,2585,057,7281,623,0058,907,755NOI Before Depreciation4,8354,5415,0581,6233,435212%51611%8,908

%,FCLASS_FLD,TALL_SUBCLASSES,NS5000,FACCOUNT,TALL_ACCOUNTS2,NA5000CDepreciation8,441,5258,822,6308,910,5688,803,75617,612,657Depreciation8,4428,8238,9118,804(107)-1%881%17,613



%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5511Ship Canal Fishing & Operations(1,161,644)(1,148,366)(800,417)(1,214,531)(2,298,433)Ship Canal Fishing & Operations(1,162)(1,148)(800)(1,215)414-34%348-30%(2,298)


%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5600Recreational Boating 791,455982,3711,044,692262,9661,044,897Recreational Boating 7919821,045263782297%626%1,045

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5405Cruise2,829,2482,093,4773,216,3012,920,02210,388,187Cruise2,8292,0933,2162,92029610%1,12354%10,388

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5115Bulk2,388,2622,249,3251,736,7251,533,6612,443,772Bulk2,3882,2491,7371,53420313%(513)-23%2,444

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5910Maritime Portfolio111,242390,634(435,122)(1,225,089)(1,653,868)Maritime Portfolio111391(435)(1,225)790-64%(826)-211%(1,654)

All Other(477,785)(39,383)(219,093)(371,874)(748,229)All Other(478)(39)(219)(372)153-41%(180)456%(748)

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5000Total Maritime4,835,3394,541,2585,057,7281,623,0058,907,755Total Maritime4,8354,5415,0581,6233,435212%51611%8,908

Check000(0)(0)


%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,V5522,V5525,V5523Fishermen's Terminal(1,538,827)(1,412,966)(1,464,921)(2,001,600)(3,633,581)Fishermen's Terminal(1,539)(1,413)(1,465)(2,002)537-27%(52)4%(3,634)

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,V5542,V5543Maritime Industrial Center(74,081)(100,751)(108,727)(226,386)(307,678)Maritime Industrial Center(74)(101)(109)(226)118-52%(8)8%(308)

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,V5621,V5565Shilshole Bay Marina1,131,9811,285,5281,421,854694,5681,726,868Shilshole Bay Marina1,1321,2861,422695727105%13611%1,727

(16,077.65)


&F &A&D

Summary PPT




Total Revenues24,52526,25727,36827,918(550)-2%1,1104%


Net Operating Income4,8354,5415,0581,6233,435212%51611%

Depreciation8,4428,8238,9118,804(107)-1%881%

Net Income(3,606)(4,281)(3,853)(7,181)3,32846%42910%

Gene

Summary Word Doc




Revenues:

Operating Revenue54,18357,57559,62959,729(100)-0%2,0554%

Total Revenues54,18357,57559,62959,729(100)-0%2,0554%

Total Operating Expenses42,16443,25248,48150,8222,3415%5,22912%

Net Operating Income12,02014,32311,1498,9082,24125%(3,174)22%

Capital Expenditures 5,74620,48916,74317,5277844%(3,746)-18%



2017 YTD2018 YTD2019 Year-to-Date Budget Variance Change from 2018


Ship Canal Fishing & Operations(1,162)(1,148)(800)(1,215)41434%34830%

Elliott Bay Fishing & Commercial Operations35513515(282)797282%501 NA

Recreational Boating 7919821,045263782297%626%

Cruise2,8292,0933,2162,920296-10%1,12354%

Bulk2,3882,2491,7371,53420313%(513)-23%

Maritime Portfolio111391(435)(1,225)79064%(826)-211%

All Other(478)(39)(219)(372)15341%(180)-456%

Total Maritime4,8354,5415,0581,6233,435-212%516-11%

Sheet1

$ in 000's2018 YTD20182018 Budget Variance

ActualForecastBudget$%

Econ Dev8246,4736,149(324)-5%

Sheet2

Economic Development DivisionQ2 2019 Financial Performance Report

Economic Development Division Business Highlights

35

Real Estate Development

Launching development projects36

• Issued RFP to redevelop Terminal 106 and received strong response .

• Received Commission approval to surplus and sell small property on Harbor Avenue.

• Received Commission authorization to start design work on Historic Ship Supply building at Fishermen’s Terminal.

• Finalized appraisal of WA Dept. of Transportation property adjacent to the Port’s Des Moines Creek West property.

• This property enhances development potential of our property. Staff is starting negotiations with WSDOT now that we have agreed on site’s value.

Portfolio Management

Maintaining strong occupancy37

• Received Commission authorization to start construction/modernization of Bell Harbor Conference Center

• Secured a maritime-related tenant to lease the office building at Salmon Bay Marina, resulting in 100% occupancy on the uplands.

• Leased an additional 98,400 square feet of yard space at Terminal 91.

• Brought in Origin Seafoods to Terminal 102. They will sell seafood online, then portion, fulfill, and ship orders at the terminal.

Diversity in Contracting

38

Implementing the Port’s new Diversity in Contracting Program

• Published the first Diversity in Contracting Annual Report. It highlighted thePort’s 2018 WMBE results (11.8%) and 2019 WMBE utilization goals (12.4%*)

• Posted first quarterly Diversity in Contracting article and blogs on the Port of Seattle’s website and external news/media outlets.

• Port had 16.1% WMBE utilization after Q1 2019. Staff is now tracking utilization quarterly across all divisions/departments

• Held a PortGen Maritime event with 70 attendees learning about the upcoming Maritime Projects, the Maritime’s 2019 WMBE aspirational goal, and the Port’s new Diversity in Contracting Program.

• Presented the Port’s aspirational goals and new affirmative efforts required by those Primes interested in doing business with the Port to the Construction Management Associations of America

*not including construction

Tourism

39

Supporting Tourism Marketing programs and promoting gateway facilities

• Thirty organizations received 2019 tourism grants from the Port of Seattle. New recipients include: Goldendale Chamber of Commerce promoting the Goldendale Observatory, the Suquamish Museum targeting travelers in Seattle hotels and Methow Trails will improve their website promoting outdoor winter activities.

• Twenty four recipients were awarded Airport Spotlight advertising grants. Current recipients include Lewis County, Suquamish Tribal Museum, Sequim Lavender Farmers, Long Beach Visitors Bureau and Methow Trails.

• Selected Core Communications to provide tourism marketing programs on behalf of the Port of Seattle’s international tourism efforts.

• Participated in Aer Lingus Tour America travel show, ITB Berlin, Visit Seattle’s Korea Sales Mission and Active America China travel trade show to educate travel trade, tour operators and travel media about cruising from Seattle to Alaska and promote SeaTac International Airport as the gateway for international arriving visitors.

Workforce Development

40

Continued efforts on Workforce Development Initiatives

• 14 aspiring ironworkers graduated from the union’s second pre-apprenticeship cohort. 13 are now enrolled apprentices. The group has earned $140, 937 ($24+/hour) so far.

• ANEW also hosted a graduation event for their second cohort of construction pre-apprentices. They had 14 people complete their construction program. Starting wages for graduates from this program range from $22-27/hour

• Released RFP to operate Career Advancement Center at Seatac International Airport. Bids are due in July and we expect to award contracts and start services in Q4 2019.

• Organized and held awareness event focused on recreational boating and maritime careers with youth from Upward Bound. Along with learning about maritime careers, over 50 diverse youth experienced sailing on the Adventuress

EDD Partnership Program

Continued Economic Development Partnership Program41

• YTD - Approximately $795,900 has been awarded to 25 cities in 2019

• King County cities have committed to $584,000 in matching funds and in-kind resources

• Hosting 4 economic development partnership meetings with cities on topics like:

– Roundtable discussion on small business development resources

– Greater Seattle Partners update and discussion about strategic plan

– Presentation by Seattle Metro. Chamber on new Business Retention/Expansion program

Economic Development Financial Highlights

42

YTD Revenue exceeding plan, expenses below budget

2019 Q2 NOI $3,132K favorable to budget and $668K greater than 2018• Revenue favorable to budget by $367K and $619K greater than 2018 driven by favorable volumes at the

Conference and Event Centers. Annual revenue forecast at budget and 5% below 2018 from anticipated closures related to Conference and Event Center modernization project.

• Expenses favorable to budget by $2,716K driven by timing of Economic Development grant matching funds, timing initiative programs, favorable P66 allocation methodology change, and underspend in central services. Expenses are flat on a Y/Y basis. Annual expenses forecasted to 6% under budget and 6% higher than 2018 due to primarily to higher spending in initiative programs.

• 25 % of Capital budget was spent in the 1st half, with annual forecast at 87% of budget.

2017 YTD 2018 YTD Budget Variance Change from 2018$ in 000's Actual Actual Actual Budget $ % $ %Total Revenues 7,727 9,765 10,384 10,017 367 4% 619 6%

Total Operating Expenses 12,067 12,880 12,972 15,688 2,716 17% 92 1%

Net Operating Income (4,340) (3,115) (2,588) (5,670) 3,082 54% 527 17%Depreciation 1,860 1,999 1,859 1,908 50 3% (141) -7%

Net Income (6,201) (5,114) (4,447) (7,579) 3,132 41% 668 13%


Summary for PPT




Total Revenues7,7279,76510,38410,0173674%6196%


Net Operating Income(4,340)(3,115)(2,588)(5,670)3,08254%52717%

Depreciation1,8601,9991,8591,908503%(141)-7%

Net Income(6,201)(5,114)(4,447)(7,579)3,13241%66813%

Gene

Summary




Revenues:

Operating Revenue17,79120,70519,95719,7252321%(747)-4%

Total Revenues17,79120,70519,95719,7252321%(747)-4%

Total Operating Expenses25,39727,65130,69631,1144181%3,04611%

Net Operating Income(7,606)(6,946)(10,739)(11,389)6506%(3,793)-55%

Capital Expenditures 3,7392,0665,6825,713311%3,616175%



2017 YTD2018 YTD2019 Year-to-Date 2019 Bud Var Change from 2018


Portfolio Management(2,548)(2,062)(1,293)(3,093)1,79958%76937%

Conference & Event Centers(483)(17)(162)(85)(78)-92%(145)-848%

Tourism(528)(640)(505)(714)20829%13421%

Workforce Development(353)(368)(596)(1,095)49946%(229)-62%

EDD Grants(427)(28)4(624)628NA32NA

Env Grants/Remed Liab/ERC(1)0(34)(60)26NA(34)NA

Total Econ Dev(4,340)(3,115)(2,588)(5,670)3,08254%52717%

Detail



2018-09-302018-09-302016201720182018



Total Economic Development Total Economic Development

Revenue4,181,7484,576,8984,421,0944,413,8978,930,387Revenue4,1824,5774,4214,41470%(156)-3%8,930

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5208Conf & Event Centers3,544,9395,188,4435,963,0965,603,52110,794,958Conf & Event Centers3,5455,1885,9635,6043606%77515%10,795

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS7000Total Revenue7,726,6879,765,34110,384,19010,017,41819,725,345Total Revenue7,7279,76510,38410,0173674%6196%19,725

%,FCLASS_FLD,TALL_SUBCLASSES,NS7000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO7000Expenses7,517,0857,832,3738,341,78310,105,64720,093,945Expenses

%,FCLASS_FLD,TALL_SUBCLASSES,NS7000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO5200,NO5203,NO5205,NO5910Portfolio Management2,049,7971,951,6551,921,7002,156,0164,127,939Portfolio Management2,0501,9521,9222,15623411%(30)-2%4,128

%,FCLASS_FLD,TALL_SUBCLASSES,NS7000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO5208Conf & Event Centers3,660,0014,306,2034,832,6804,687,1359,373,749Conf & Event Centers3,6604,3064,8334,687(146)-3%52612%9,374

%,FCLASS_FLD,TALL_SUBCLASSES,NS7000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO2500P69 Facilities Expenses96,353114,40491,963114,565224,524P69 Facilities Expenses96114921152320%(22)-20%225

%,FCLASS_FLD,TALL_SUBCLASSES,NS7000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO2300Small Business26,39336,72698,617105,770199,013Small Business26379910677%62169%199

%,FCLASS_FLD,TALL_SUBCLASSES,NS7000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO2350Workforce Development228,445227,802473,786959,1392,010,054Workforce Development22822847495948551%246108%2,010

%,FCLASS_FLD,TALL_SUBCLASSES,NS7000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO1440Tourism513,521619,823526,305761,1121,520,604Tourism51462052676123531%(94)-15%1,521

%,FCLASS_FLD,TALL_SUBCLASSES,NS7000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO7100RE Dev & Planning120,08774,43148,10197,565216,004RE Dev & Planning1207448984951%(26)-35%216

%,FCLASS_FLD,V2320,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO7200EDD Grants426,78828,110(3,510)580,0001,160,000EDD Grants42728(4)580584101%(32)-112%1,160

EconDev Expenses Other395,700473,218352,140644,3451,262,060EconDev Expenses Other39647335264429245%(121)-26%1,262


Maritime Expenses (Excl Maint)24,10476,73571,946195,769388,755Maritime Expenses (Excl Maint)24777219612463%(5)-6%389

%,FCLASS_FLD,TALL_SUBCLASSES,NS7000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO5000ALL Maritime Expenses1,515,6692,072,5261,634,9412,355,7934,459,271ALL Maritime Expenses

%,FCLASS_FLD,TALL_SUBCLASSES,NS7000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO2700Environmental & Sustainability129,690121,219172,958192,523395,320Environmental & Sustainability1301211731932010%5243%395

%,FCLASS_FLD,TALL_SUBCLASSES,NS7000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO9000CDD Expenses199,737138,713147,686119,957235,121CDD Expenses200139148120(28)-23%96%235

%,FCLASS_FLD,TALL_SUBCLASSES,NS7000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO4300Police Expenses84,53781,326101,249114,420228,466Police Expenses85811011141312%2024%228

Other Central Services2,551,2902,554,9212,520,0402,719,0055,547,228Other Central Services2,5512,5552,5202,7191997%(35)-1%5,547

%,FCLASS_FLD,TALL_SUBCLASSES,NS7000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO1000,NO6000,NO8000ALL Corporate Expenses2,965,2532,896,1792,941,9343,145,9056,406,136ALL Corporate Expenses


%,FCLASS_FLD,TALL_SUBCLASSES,NS7000,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO7400Envir Remed Liability00000Envir Remed Liability00000NA0NA0


NOI Before Depreciation(4,340,182)(3,115,082)(2,588,027)(5,670,393)(11,389,063)NOI Before Depreciation(4,340)(3,115)(2,588)(5,670)3,082-54%527-17%(11,389)

%,FCLASS_FLD,TALL_SUBCLASSES,NS7000,FACCOUNT,TALL_ACCOUNTS2,NA5000CDepreciation1,860,3851,999,1241,858,5561,908,3223,818,711Depreciation1,8601,9991,8591,908503%(141)-7%3,819


%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5900,NS7100Net Operating Income Before Depreciation by Business(3,031,751)(2,079,322)(1,455,748)(3,177,520)(6,301,307)Net Operating Income Before Depreciation by Business

Portfolio Management(2,548,397)(2,062,210)(1,293,482)(3,092,876)(5,709,152)Portfolio Management(2,548)(2,062)(1,293)(3,093)1,799-58%769-37%(5,709)

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5208Conference & Event Centers(483,354)(17,112)(162,267)(84,644)(592,155)Conference & Event Centers(483)(17)(162)(85)(78)92%(145)848%(592)

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS1440Tourism(527,670)(639,988)(505,492)(713,684)(1,346,798)Tourism(528)(640)(505)(714)208-29%134-21%(1,347)

Workforce Development(353,290)(367,662)(596,164)(1,094,888)(2,292,857)Workforce Development(353)(368)(596)(1,095)499-46%(229)62%(2,293)

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,V2320,FDEPTID,TALL_ORGS,NO2300Small Business000(44,300)(88,100)Small Business000(44)44-100%0NA(88)

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,V2320,FDEPTID,TALL_ORGS,NO7200EDD Grants(426,788)(28,110)3,510(580,000)(1,160,000)EDD Grants(427)(28)4(580)584-101%32-112%(1,160)

Env Grants/Remed Liab(682)0(34,132)(60,000)(200,000)Env Grants/Remed Liab(1)0(34)(60)26-43%(34)ERROR:#DIV/0!(200)

Total EconDev(4,340,182)(3,115,082)(2,588,027)(5,670,393)(11,389,063)Total EconDev(4,340)(3,115)(2,588)(5,670)3,082-54%527-17%(11,389)

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS2350ALL under S2350(245,031)(300,216)(288,404)(328,738)(669,107)

%,R,FCLASS_FLD,V2320,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000B,FDEPTID,TALL_ORGS,NO2350WFD Tax Levy(108,258)(67,446)(307,760)(766,150)(1,623,750)

%,R,FCLASS_FLD,V2350,FACCOUNT,TALL_ACCOUNTS2,NA5000,NA5000BWFB S2350(245,031)(300,216)(288,404)(328,738)(669,107)

Net Operating Income Before Depreciation (Other Business EconDev manage)Net Operating Income Before Depreciation (Other Business EconDev manage)

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,NA5000,NA5000B,FCLASS_FLD,TALL_SUBCLASSES,NS5910Maritime Portfolio Management 111,242390,634(435,122)(1,225,089)(1,653,868)Maritime Portfolio Management 111391(435)(1,225)790-64%(826)-211%(1,654)

Revenues to Other DivisionsRevenues to Other Divisions

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5314Maritime Industrial3,305,5383,527,0242,961,5212,950,2785,961,729Maritime Industrial3,3063,5272,9622,950110%(566)-16%5,962

%,R,FACCOUNT,TALL_ACCOUNTS2,NA4000,FCLASS_FLD,TALL_SUBCLASSES,NS5515Marina Office & Retail1,961,1912,101,0272,057,4482,101,4654,366,114Marina Office & Retail1,

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Port of Seattle Q2 2019 Financial Performance Report · 2019-09-04 · Q2 2019 Financial Performance Report. ... Maximizing Port’s real estate potential and driving jobs & economic