Performance Update. JP Morgan Transportation & Utility Investor Forum April 18-19, 2018

Transcription

1 Performance Update JP Morgan Transportation & Utility Investor Forum April 18-19, 2018

2 Participants and Resources 2 E-470 Public Highway Authority Jason Myers Finance Director Jaime Heitman Controller investorrelations@e-470.com Website: Stifel Municipal Advisor Michael Lund Director Disclaimer & Disclosures: The information set forth in this report is provided for convenience and is not provided in connection with an offer to buy or sell any securities. The information is provided as of the date of the report. Material changes may have occurred with respect to the information since that date, and the Authority has not undertaken to update or revise the information if such changes occur. Accordingly, the report must not be considered current as of the day you access it.

3 Authority Overview 3 47 centerline miles on eastern perimeter of Denver Metro Area Serves DIA and commuting customers Board of Directors 8 voting members, 8 nonvoting members Political subdivision of the State 1991 First five miles opened, one of the first toll roads to implement open road tolling (ExpressToll) 2003 Final section was opened, completing the 47 mile semi-circle 2009 Discontinued cash collection in the lanes, introduced License Plate Toll (LPT) 2014 to present Back Office and Customer Services for new CO Managed Lane facilities

4 Authority Update Accomplishments Annual certification asset conditions deemed excellent Clean financial statement audit Debt Service coverage at 2.12 vs. budget of 1.75 Highest traffic year in history; Highest toll revenues ever recorded Successful remarketing in March of $138 million of variable rate debt Master Capital Plan completion Toll Rate Study completion; new toll rate policy adopted Continued to be a successful toll integrator & back office provider for State of Colorado

5 Master Capital Plan Study 5 Level of Service Study-Maintain C Roadway widening Interchange improvements & additions Continued maintenance improvements Paving, lighting, signing, safety, etc. Accommodate growth along corridor Growth projected to double by 2040 Identify and implement mobility solutions stay ahead of demand Capture capital, infrastructure, replacement needs between Authority is evaluating the timing and project plans for these costs Intent to cash fund capital projects Board approved in December 2017; available on website

6 Toll Methods 6 ExpressToll ExpressToll customers prepay their accounts Transponder in vehicle 1.6 million transponders in the marketplace Branding and technology used on all Colorado facilities 74% of E toll revenue was ExpressToll 97% Collection Rate License Plate Toll (LPT) Front and rear image taken of license plate(s) Registered owner of vehicle receives a monthly bill LPT customers pay a premium over ExpressToll Branding and technology used on E-470 and CDOT facilities 86% collection rate of billable tolls in 2017

7 New Toll Rate Schedule 7 Previous Toll Rate Policy (2011 to 2017) Annual incremental increases equaling $0.25 every 3 years for ExpressToll rates LPT had a 25% premium over ExpressToll New Toll Rate Structure (2018 to 2020) Board approved in November 2017; summary report on website Structure chosen to try and: Promote ExpressToll account conversions from LPT Reward our large customer base (ExpressToll) Enhance toll revenue Provide more flexibility in the future to maneuver toll rates for future needs Three-Year Schedule (Subject to annual board approval)

8 Historical Transaction Trends 8 8,500 4% Growth in 2017 Transactions over % of Budgeted Transactions in % of 2017 Projected Transactions* 8,000 7,500 7, Thousands 6,500 6,000 5,500 5,000 4, ,000 3,500 3, Transactions: 79,975, Transactions: 83,175, YTD Transactions: 12,017, ,500 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC * 2017 Projections are based on the 2017 CDM Smith Bring Down Letter

9 Annual Transactions & Revenue 2009 to vs Toll Revenues - 111% 2017 vs. Budgeted Toll Revenues - 111% 2017 vs. Projected* Toll Revenues 103% Millions Nine Year Growth in Toll Revenues - 139% Nine Year Growth in Transactions 73% Traffic Volume 47,972,713 51,297,941 52,080,386 53,965,816 58,402,732 66,365,038 74,609,047 79,975,235 83,175,170 Toll Revenue $89,487,115 $94,309,891 $107,722,486 $116,744,889 $129,181,918 $150,404,512 $173,039,512 $192,810,649 $213,765,649 * 2017 Projections are based on the 2017 CDM Smith Bring Down Letter

10 2017 Operating Budget Results 10 Revenue (Unaudited) 2017 Actual 2017 Budget % Budget Toll Revenue (net) $213,765,649 $192,081, % Other Revenue (net) 35,800,144 28,372, % Total Revenues 249,565, ,453, % Total Operating Expenses Less: VRF Bonds Debt Service (46,165,326) (1,066,228) (51,786,750) 89% NET REVENUES $202,334, ,666, % Sr. Bonds Debt Service 95,246,810 96,380,350 99% Debt Service Coverage

11 Debt Service Coverage 11 $210,000, $185,000,000 $160,000,000 2 $135,000, $110,000,000 $85,000, $60,000, $35,000,000 $10,000, $15,000, Net Revenue $108,844,386 $120,716,683 $142,592,354 $162,110,926 $185,449,484 $202,334,239 Senior Debt Service $74,737,478 $81,657,745 $83,630,014 $91,119,525 $97,231,865 $95,246,810 Debt Service Coverage Authority DS Coverage Requirement 1.30 (per bond resolutions) 1

12 2018 Operating Budget 12 (Unaudited) February YTD Actual YTD 2018 Budget % Budget Total 2018 Budget Revenue Toll Revenue (net) $31,314,719 $29,139, % $222,618,000 Other Revenue (net) 6,296,048 5,530, % 28,969,000 Total Revenues 37,610,767 34,669, % 251,587,000 Total Operating Expenses (7,352,582) (9,790,736) 75% (54,745,700) NET REVENUES $30,258,185 24,878, % 196,841,300 Less: VRF Bonds Aggregate Debt Service Due (244,125) Sr. Bonds Debt Service (16,954,726) (16,947,433) 100% (101,684,600) Debt Service Coverage 1.94

13 Capital Budget 2017 Results and 2018 Budget 13 Renewal & Replacement (Unaudited) Total 2017 Actual Total 2017 Budget 2018 Budget Roadway Maintenance $ 4,132,814 5,446,500 3,181,500 Facility Maintenance & Other R&R 3,227,257 6,370,357 3,215,500 Software & Hardware Upgrades 8,739,879 12,131,843 11,303,000 Construction Projects and Other Interchange Improvements 27,010 1,000,000 12,450,000 Road Widening Parker to Quincy 49,946,105 49,825,000 1,200,000 Road Widening Quincy to I-70 Design 0 0 2,000,000 Pavement Resurfacing ,060,000 Other Capital Projects/Requirements 243,396 4,290,800 4,850,800 Total Capital Projects $66,316,461 $79,064,500 $48,260,800 * All R&R and Construction funding is from the Capital Improvements Fund; no bond proceeds are used to increase the Authority s outstanding debt

14 Fund Balances 14 Reserves & Restricted Accounts* 12/31/ /31/ /31/2017 Senior Debt Service Reserve** 127,467, ,132, ,161,000 Operating Reserve 8,326,000 8,810,000 8,855,000 Tower-Pena Ramp Financing Account 3,207,000 3,207,000 3,207,000 VRF Bonds Restricted Account 3,055, ,000 - Subtotal Reserves Accounts 142,055, ,732, ,223,000 Unrestricted Accounts Rainy Day Reserve Account 10,380,000 10,483,000 10,548,000 Senior Bonds Defeasance Account 22,467,000 32,279,000 57,462,000 Capital Improvements Fund Accounts 127,413, ,234, ,822,000 Subtotal Unrestricted Accounts 160,260, ,996, ,832,000 Total Fund Balances 302,315, ,728, ,055,000 * Does not include balances within the Trust Revenue, Sr. Debt Service or VRF Debt Service Funds ** Includes $25.0 million surety policy from MBIA/NPFG Note: All balances are rounded

15 Interoperability in Colorado 16 COLORADO TOLL FACILITIES Toll Roads: E-470 Northwest Parkway Express Lanes: US 36 (Phase I and II) I-25 (Central & North Segment II) I-70 (MEXL) Express Lanes (In Progress): I-25 North Segment III (2019) C-470 (2019) Express Lanes (TBD by HPTE): I-25 North Segment 7 & 8 (2020?) I-70 Central (2022?) ExpressToll Services Provided: Back Office/Customer Service/Billing Toll Integration/Installation Services All back office and toll integration costs incurred on behalf of others are 100% recovered by the Authority per the Tolling Services Agreements (TSA)

16 Current Debt Structure ,000,000 Actual Debt Service 1997B 200B 2004A 2004B 2006B 2007A B C-1 Series 2007D-1 Series 2010A Series 2010C Series 2015A Series 2017A Series 2017B Debt Service (as of 2000 OS) Debt Service (as of 2011A OS) 140,000, ,000, ,000,000 80,000,000 60,000,000 40,000,000 20,000,000 -

17 Outstanding Debt Composition 17 Currently is $1.5 Billion in outstanding bond debt Callable vs. Non Callable Total matured bond payoff amount is $2.7 Billion 2018 Debt Service - $101.7 million 2019 Debt Service - $109.2 million Scheduled to be paid off in 2041 Two outstanding interest rate swaps Swaps and Debt are both 67% of LIBOR based Non Callable, 54.0% Callable, 46.0% Fixed vs. Variable Rate Debt Current outstanding swaps: FV at 12/31/17 JPM $69.3 million LIBOR original swap (2007) $ (21,771,102) MS-1 $69.3 million LIBOR original swap (2007) (21,772,209) Total swap fair value (net) $ (43,543,311) Fixed Rate, 81.7% Variable Rate*, 18.3% *Variable Rate Bonds are hedged with Swap.

18 Future Bond Financing Activities 18 Upcoming Callable Debt 2019 to 2026: Call Year Principal Callable Series 2019 $ 72,565, A 2020 $ 152,360, B & 2010C 2021 $ 66,075, B 2026 $ 56,932, B Variable Rate Summary: Series Par ($ Millions) 67% LIBOR Spread Put Date Optional Redemption Date 2017A $72.6M 0.90% 9/1/2019 3/1/ B $66.1M 1.05% 9/1/2021 3/1/2021 Principal and Notional Maturities in 2026 and Will evaluate market conditions with each put and redemption date Plan to start the process for the 2017A bonds in late 2018 No bond insurance on either bond series 2020 Call Opportunity: Callable on September 1, 2020 Authority plans to achieve its goal of level debt service as part of financing plan

19 Summary and Future Outlook 19 Continued strong traffic and corridor growth Consistently exceeding debt service coverage requirement of 1.30 Strong cash position Continuing proactive debt management meeting goals Consistent and proactive management team Continued Board support New Toll rate structure Future Capital Program (Master Capital Plan) Evaluate the integration with Interoperable Regional HUBs Continue to support future tolling projects and back office services in Colorado with our tolling partners

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