2018 Airport Financial Plan

Transcription

1 2018 Airport Financial Plan Manassas Regional Airport May 1, 2018 Final Member NYSE FINRA SIPC

2 Contents / Agenda 2 Topics for Discussion and Strategic Goals 3 Highlights of Virginia Department of Aviation ( VDOA ) Reports: 2010 vs Existing Debt Profile 7 Financial Profile 16 Projected Financial Results 22 Peer Comparison: Rates & Charges 25 Performance Measures 27 Observations / Next Steps 30 Appendix A: Existing Debt Details May 1, Final Manassas Regional Airport 1

3 Topics for Discussion and Strategic Goals Topics for Discussion Highlights of VDOA Reports: 2010 vs Existing Debt Profile Historical Financial and Operating Trends Peer Comparison of Key Financial Ratios Projected Financial Results Comparative Rates and Charges Performance Measures Observations and Next Steps Airport s Strategic Goals Maintain a fee and rental structure for the facilities and services at the airport which will make the airport as self-sustaining as possible. Establish hangar and tie-down fees that are equal to or above the average of the peer General Aviation airports in the region. Fund the Airport s Capital Program with a mixture of debt and equity in addition to available State and Federal funds. Continuously maintain no less than 365 days of unrestricted cash on hand, or 100% Unrestricted Cash/Investments as a % of Expenses. Maintain a Debt Service Coverage of no less than 1.5x. May 1, Final Manassas Regional Airport 2

4 Highlights of VDOA Reports: 2010 vs Virginia s General Aviation Airports $728 Million in economic activity 5,155 Jobs $213 Million in Payroll 2016 Virginia s General Aviation Airports $1.1 Billion in economic activity 6,119 Jobs $362 Million in Payroll Manassas Airport $235 Million in economic activity 32% of Total 1,056 Jobs 20% of Total $70 Million in Payroll 33% of Total Manassas Airport $375 Million in economic activity. 35% of Total / Change of 60% 1,351 Jobs 22% of Total / Change of 28% $117 Million in Payroll 32% of Total / Change of 68% Source: Virginia Department of Aviation. May 1, Final Manassas Regional Airport 3

5 Existing Debt Profile May 1, Final Manassas Regional Airport 4

6 Existing Debt Profile Existing Debt Profile Thousands $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $ Interest Par Outstanding as of 6/30/2017 Principal Description Balance Series 2004 VARF $641,507 Series 2014 D 1,645,000 Existing Debt Service 10-yr Payout FY Principal Interest Total Ratio Totals $ 4,210,577 $ 510,189 $ 4,720, ,368 85, , % ,589 77, , % ,907 70, , % ,324 62, , % ,843 53, , % ,466 43, , % ,967 34, , % ,955 25, , % ,926 17, , % ,928 12, , % ,960 10, , % ,023 8, , % ,118 5, , % ,246 3, , % ,956 1, , % Series 2016 VARF 1,924,071 (Takeout of State & City Loans) Total $4,210,577 Source: City CAFR and Final Numbers. May 1, Final Manassas Regional Airport 5

7 Credit Considerations Moody s Investors Service currently provides credit ratings for 98 Airports across the Country. Moody s rating criteria includes evaluation of certain Financial Ratios consisting of: Financial Liquidity Debt Service Coverage Debt Burden Over the following pages we will review several Key Financial Ratios and show how the Manassas Regional Airport ( MRA or HEF ) compares relative to other Airports rated by Moody s as well as a number of Non-Rated Virginia Regional Airports. Financial Ratio Peer Group Charlottesville Norfolk [A3] Leesburg Richmond[A2] Lynchburg Roanoke Newport News Shenandoah Later in the presentation, we compare MRA to other airports in the region that are of similar size and service and/or are perceived as direct competitors, herein referred to as the Rates & Charges Peer Group. Rates & Charges Peer Group Culpeper Martin Frederick Stafford Hagerstown Warrenton Leesburg Winchester Source: Moody s Investor Service. May 1, Final Manassas Regional Airport 6

8 Financial Profile May 1, Final Manassas Regional Airport 7

9 Historical Financial Profile Recommended Actual Actual Actual Actual Budget Budget Fiscal Year Revenues 2,470,585 2,450,589 2,452,670 2,707,481 2,962,060 3,215,630 2 Expenses (excludes depreciation) 1,527,069 1,648,083 1,449,748 1,673,247 2,003,600 2,068,950 3 Net Revenues Available for Debt Service 943, ,506 1,002,922 1,034, ,460 1,146, Debt Service 481, , , , , ,829 * 6 Net Revenues After Debt Service 462, , , , , , Capital Sources 2,169,489 6,343,954 2,400, , ,000 3,234,000 9 Capital Uses 1,752,348 4,174,350 1,626, , ,000 3,300, Net Capital Activity 417,141 2,169, ,669 (51,754) (34,000) (66,000) Reconciling Items (84,209) (1,393,961) (373,287) 61, Change in Unrestricted Cash & Cash Equivalents 795,427 1,242,819 1,071, , , , Change in Restricted Cash & Cash Equivalents 0 1,116,832 3, ,314 0 (1,228,753)* 16 Net Change in Total Cash & Cash Equivalents 795,427 2,359,651 1,074, , ,700 (551,902) Beginning Unrestricted Cash & Cash Equivalents 1,466,592 2,262,019 3,504,838 4,576,192 5,324,393 5,797, Ending Unrestricted Cash & Cash Equivalents 2,262,019 3,504,838 4,576,192 5,324,393 5,797,093 6,473, Ending Restricted Cash (1) 0 1,116,832 1,120,439 1,228,753 1,228, Total Ending Cash & Cash Equivalents 2,262,019 4,621,670 5,696,631 6,553,146 7,025,846 6,473, Days Unrestricted Cash on Hand (2) Unrestricted Cash as % of Expenses (3) 113% 177% 257% 256% 236% 262% 24 Debt Service Coverage (4) 1.96 x 2.39 x 3.02 x 2.54 x 2.12 x 2.84 x Notes: (1) Ending Restricted Cash represent sale proceeds from the Readout Road property which may be released (unrestricted) once the Environmental Assessment on the Glen-Gerry property is completed. (2) Total Ending Unrestricted Fund Balance divided by (Expenses + Debt Service) multiplied by 365 days. (3) Total Ending Unrestricted Fund Balance divided by (Expenses + Debt Service). (4) Net Revenues Available for Debt Service divided by Debt Service. * Please note: Existing Debt Service in FY 2019 assumes that the Airport utilizes the Readout Road sale proceeds to pay-off approximately $1.2 Million of the 2016 VARF loan after the 10/1/2018 debt service payment and re-amortizes the remaining principal of the loan. Source: Airport Staff worksheets and Financial Statements. May 1, Final Manassas Regional Airport 8

10 Historical Perspective: Budget to Actual Net Revenues Available for Debt Service Thousands $1,500 $1,250 $1,000 Debt Service Coverage Ratio 5.00 x 4.00 x 3.00 x $750 $500 $ x 2.00 x 1.00 x Strategic Goal (Minimum) $ x Days Unrestricted Cash on Hand 1, Days 300 Actual Budget Strategic Goal (Minimum) Observations Actual Budget Net Revenues Available for Debt Service MRA budgets conservatively and has either closely matched budgeted revenues vs. expenditures or come in better than budget. Debt Service Coverage Ratio Similarly, due to conservative budgeting and better than budgeted operating results, MRA has enjoyed a healthy coverage ratio in excess of its Strategic Goal Minimum of 1.50x. Days Cash on Hand MRA continues to grow its Unrestricted Reserves with the goal of funding future capital needs in a strategically balanced approach (i.e., Cash vs. Debt plus State and Federal funds). Actual Budget Source: Airport Staff worksheets and Financial Statements. May 1, Final Manassas Regional Airport 9

11 Historical Perspective: Operations Operating Ratio % Peer Comp: Operating Ratio % 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Manassas (HEF) 2017 Richmond (RIC) Leesburg (JYO) Norfolk (ORF) Charlottesville (CHO) Roanoke (ROA) Lynchburg (LYH) Newport News (PHF) Shenandoah (SHD) VA Peer Median National Aa Median National A Median National Baa Median 61.8% 40.8% 57.8% 69.7% 72.0% 84.7% 85.8% 92.1% 93.2% 72.0% 58.3% 62.5% 69.9% 0% 20% 40% 60% 80% 100% 120% Lower Is Better Operations: Revenues vs. Expenses Millions Definition: Operating Ratio % Operating and maintenance expenses divided by total operating revenues. Operating and maintenance expenses exclude depreciation, amortization, and debt service requirements. MRA 2017 Calculation: Operating Expenses (A): 1,673,247 Operating Revenues (B): 2,707,481 Operating Ratio (A B): 62% Expenses Revenues Source: Airport Staff worksheets, Financial Statements, and Moody s Investor Service (MFRA, most recent available). May 1, Final Manassas Regional Airport 10

12 Historical Perspective: Liquidity% Liquidity % Peer Comp: Liquidity % 400% Manassas (HEF) % 350% Charlottesville (CHO) 207.2% Norfolk (ORF) 106.8% 300% Lynchburg (LYH) 106.2% 250% Roanoke (ROA) 97.4% Richmond (RIC) 69.0% 200% Newport News (PHF) 13.3% Shenandoah (SHD) 10.8% 150% Higher Is Better 100% 50% 0% VA Peer Median 101.8% National Aa Median 238.8% National A Median 205.0% National Baa Median 134.9% 0% 50% 100% 150% 200% 250% 300% 350% 400% Definition: Liquidity % Liquidity % is Net Working Capital (Current Assets Less Current Liabilities ) divided by Operating & Maintenance Expenses (which excludes depreciation, amortization, and debt service requirements). MRA 2017 Calculation: Current Assets (A): 7,027,033 Current Liabilities (B): 939,622 Net Working Capital (A-B=C): 6,087,411 Operating Expenses (D): 1,673,247 Liquidity Ratio (C D): 364% Source: Airport Staff worksheets, Financial Statements, and Moody s Investor Service (MFRA, most recent available). May 1, Final Manassas Regional Airport 11

13 Historical Perspective: Unrestricted Cash/Investments as a % of Expenses Unrestricted Cash/Investments as a % of Expenses 350% 300% Peer Comp: Unrestricted Cash/Investments as a % of Expenses Manassas (HEF) % Roanoke (ROA) 112.7% Higher 250% 200% Lynchburg (LYH) Norfolk (ORF) Richmond (RIC) 103.7% 93.7% 49.0% is Better 150% Charlottesville (CHO) 17.0% 100% 100% Strategic Goal (Minimum) Shenandoah (SHD) Newport News (PHF) 14.8% 3.8% 50% 0% Note: FY 2018 & FY 2019 assume MRA maintains restricted cash balance of $1,228,753 based upon FY 2017 CAFR. VA Peer Median 71.3% 0% 50% 100% 150% 200% 250% 300% Definition: Unrestricted Cash/Investments as a % of Expenses Cash includes all Unrestricted Cash, Cash Equivalents, and Investments. Expenses are Operating & Maintenance Expenses (which excludes depreciation and amortization) plus debt service requirements. MRA 2017 Calculation: Unrestricted Cash/Cash Equivalents (A): 5,324,393 Expenses (B): 2,080,936 Unrestricted Cash as a % of Expenses (A/B=C): 256% Source: Airport Staff worksheets and Financial Statements. May 1, Final Manassas Regional Airport 12

14 Historical Perspective: Debt Ratio % Debt Ratio % Peer Comp: Debt Ratio % 25% Manassas (HEF) % Roanoke (ROA) 0.0% 20% Lynchburg (LYH) 1.3% Charlottesville (CHO) 3.4% Newport News (PHF) 8.2% 15% Shenandoah (SHD) 9.8% Richmond (RIC) 23.4% 10% Norfolk (ORF) 24.6% Lower is Better 5% 0% VA Peer Median 9.0% National Aa Median 36.2% National A Median 31.0% National Baa Median 24.7% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Definition: Debt Ratio % Net funded debt divided by the sum of net fixed assets, depreciation, Passenger Facility Charge balances, and net working capital. This measures the degree of leverage of the facility. Net funded debt is long-term debt plus accrued interest payable less the balance in both the Debt Service Reserve Fund and Debt Service or Sinking Fund. MRA 2017 Calculation: Net Funded Debt (A): 4,210,577 Net Fixed Assets (B): 37,961,143 Debt Ratio (A B): 11% Source: Airport Staff worksheets, Financial Statements, and Moody s Investor Service (MFRA, most recent available). May 1, Final Manassas Regional Airport 13

15 Historical Perspective: Debt Service Coverage Debt Service Coverage Peer Comp: Debt Service Coverage 1.50 x 5.00 x 4.00 x 3.00 x 2.00 x 1.00 x 0.00 x Strategic Goal (Minimum) Manassas (HEF) x Norfolk (ORF) 3.5 x Lynchburg (LYH) 3.4 x Richmond (RIC) 2.8 x Charlottesville (CHO) 2.1 x Leesburg (JYO) 1.2 x Shenandoah (SHD) 1.0 x Newport News (PHF) 0.7 x VA Peer Median 2.3 x National Aa Median 2.2 x National A Median 2.0 x National Baa Median 1.7 x 0.0 x 1.0 x 2.0 x 3.0 x 4.0 x 5.0 x Higher is Better Definition: Debt Service Coverage Net revenues divided by annual debt service. MRA 2017 Calculation: Net Revenues (A): 1,034,234 Debt Service (B): 407,689 Coverage Ratio (A B): 2.5 x Source: Airport Staff worksheets, Financial Statements, and Moody s Investor Service (MFRA, most recent available). May 1, Final Manassas Regional Airport 14

16 Historical Perspective: Debt Service Safety Margin % Debt Service Safety Margin % Peer Comp: Debt Service Safety Margin % 60% 50% 40% 30% 20% 10% 0% Manassas (HEF) 2017 Richmond (RIC) Norfolk (ORF) Roanoke (ROA) Charlottesville (CHO) Lynchburg (LYH) Leesburg (JYO) Shenandoah (SHD) Newport News (PHF) VA Peer Median National Aa Median National A Median National Baa Median 23.1% 38.3% 21.6% 15.3% 14.5% 10.1% 6.7% 0.3% 2.8% 14.5% 18.3% 16.6% 13.9% 5% 0% 5% 10% 15% 20% 25% 30% 35% 40% Higher is Better Definition: Debt Service Safety Margin % Net revenues less principal and interest requirements for the year divided by gross revenue and income. MRA 2017 Calculation: Net Revenues (A): 1,034,234 Debt Service (B): 407,689 Gross Revenue (C): 2,707,481 Debt Safety Margin Ratio ([A-B] C): 23% Source: Airport Staff worksheets, Financial Statements, and Moody s Investor Service (MFRA, most recent available). May 1, Final Manassas Regional Airport 15

17 Projected Financial Results May 1, Final Manassas Regional Airport 16

18 Capital Improvement Program Project ID # Future Years (1) Total Project 1 Uses: 2 Air Traffic Control Tower A ,600,000 7,600,000 3 Upgrade Runway 16R/34L Lighting System and PAPIs A , ,000 4 Realignment of Wakeman Drive & Observation Road A ,850,000 3,850,000 5 Land Acquisition Southwest Side of Airport A ,000,000 3,000,000 6 North End West Apron Rehabilitation and Expansion A ,000 3,000, ,300,000 7 Fuel Farm Update A , ,000 8 Mid-field West Apron Rehabilitation A-067 4, ,000 9 Taxiway A Rehabilitation A ,000 2,250, ,500, Runway 16R/34L Rehabilitation A ,000 3,000, ,300, North East Apron Expansion A ,000 1,200,000 1,300, Rehabilitate and Widen Taxiway B A ,000 3,000,000 3,300, Terminal Parking Lot Expansion A , , , Upgrade Taxiway A Lighting System A , , Installation of Security Fiberline A , , Midfield Ditch Restoration A , , Installation of Backup Generators A , , , Total Uses 424,000 3,300,000 3,650,000 3,100, ,000 19,500,000 30,874, Sources: 21 Enterprise Funds / Operations 34,000 66,000 73, , , ,000 1,197, State 120, , , , ,000 1,765,000 3,337, Federal 270,000 2,970,000 3,285,000 2,520, ,000 16,935,000 26,340, Other Bond Proceeds Total Sources 424,000 3,300,000 3,650,000 3,100, ,000 19,500,000 30,874,000 Notes: (1) Future Year activity assumed to be spent equally over FY * Please note: The listing of projects shown above reflects new capital improvement activity. Ongoing maintenance projects are included under operating expenses in the Airport s financial projections. Source: CIP Budget documents. May 1, Final Manassas Regional Airport 17

19 Historical & Projected Growth Rates Recommended Avg. Growth Projected Actual Actual Actual Actual Budget Budget Fiscal Year to Revenues 2 Franchises & Leases 1,659, % -2.4% 1.6% -4.1% 3.0% -0.1% 3.0% 3 Hangar Rentals 358, % 0.8% 76.7% 45.4% 25.3% 29.0% 3.0% 4 Fuel & Security Surcharge 272, % -3.5% 4.5% -9.3% -5.4% -2.2% 3.0% 5 Tie Downs & Other Revenues 180, % 33.7% -26.0% 47.5% -3.6% 6.5% 3.0% 6 Total Operating Revenues 2,470, % 0.1% 10.4% 9.4% 8.6% 5.5% 3.0% 7 8 9Expenses 10 Wages & Benefits 701, % -1.1% 8.8% 1.3% -1.0% 2.2% 4.0% 11 Services & Supplies 512, % -29.3% 28.8% 52.0% 3.1% 15.1% 4.0% 12 Utilities 110, % -10.7% 8.9% 15.4% 0.4% 3.2% 4.0% 13 Security 66, % -3.8% 0.8% 1.9% 3.4% 6.8% 4.0% 14 FAA Tower & Miscellaneous 135, % 6.6% 22.1% 6.1% 30.3% 8.3% 4.0% 15 Total Operating Expenses 1,527, % -12.0% 15.4% 19.7% 3.3% 6.9% 4.0% Notes: (1) Franchises and Leases have been combined due to similar growth parameters within their contracts; while Hangar Rentals have been segregated for purposes of this analysis. (2) Annual and Average Growth numbers are calculated in Total across all sub categories of Revenues and Expenses. Source: Airport Staff worksheets. May 1, Final Manassas Regional Airport 18

20 Pro Forma Results Recommended Budget Budget Projected Projected Projected Projected Projected Projected Fiscal Year Revenues 2,962,060 3,215,630 3,312,099 3,411,462 3,513,806 3,619,220 3,727,796 3,839,630 2 Expenses (excludes depreciation) 2,003,600 2,068,950 2,151,708 2,237,776 2,327,287 2,420,379 2,517,194 2,617,882 3 Net Revenues Available for Debt Service 958,460 1,146,680 1,160,391 1,173,686 1,186,518 1,198,841 1,210,602 1,221,749 4 * 5 Existing Debt Service 451, , , , , , , ,189 6 Proposed Debt Service Total Debt Service 451, , , , , , , , Net Revenues After Debt Service 506, , , , , , , , Capital Sources 390,000 3,234,000 3,577,000 2,984, ,000 3,740,000 3,740,000 3,740, Capital Uses 424,000 3,300,000 3,650,000 3,100, ,000 3,900,000 3,900,000 3,900, Net Capital Activity (34,000) (66,000) (73,000) (116,000) (108,000) (160,000) (160,000) (160,000) New Bonds Issued / Use of Restricted Reserves 0 1,228, Retirement of Existing Loans/Debt 0 (1,228,753) * Net Financing Activity Change in Unrestricted Cash & Cash Equivalents 472, , , , , , , , Change in Restricted Cash & Cash Equivalents 0 (1,228,753) * Net Change in Total Cash & Cash Equivalents 472,700 (551,902) 738, , , , , , Beginning Unrestricted Cash & Cash Equivalents 5,324,393 5,797,093 6,473,944 7,212,339 7,919,697 8,647,107 9,334,518 10,046, Ending Unrestricted Cash & Cash Equivalents 5,797,093 6,473,944 7,212,339 7,919,697 8,647,107 9,334,518 10,046,106 10,855, Ending Restricted Cash 1,228, Days Unrestricted Cash on Hand (1) ,053 1,117 1,178 1,229 1,284 1, Unrestricted Cash as % of Expenses (2) 236% 262% 288% 306% 323% 337% 352% 378% 28 Debt Service Coverage (3) 2.12 x 2.84 x 3.32 x 3.35 x 3.38 x 3.41 x 3.57 x 4.84 x Notes: (1) Total Ending Fund Balance divided by (Expenses + Debt Service) multiplied by 365 days. (2) Total Ending Fund Balance divided by (Expenses + Debt Service). (3) Net Revenues Available for Debt Service divided by Debt Service. * Please note: Existing Debt Service in FY 2019 & beyond assumes that the Airport utilizes the Readout Road sale proceeds to pay-off approximately $1.2 Million of the 2016 VARF loan after the 10/1/2018 debt service payment and re-amortizes the remaining principal of the loan. Source: Airport Staff worksheets. May 1, Final Manassas Regional Airport 19

21 Projected Key Ratios Operating Ratio % Unrestricted Cash/Investments as a % of Expenses 100% 500% 90% Lower 450% Higher 80% 70% is 400% 350% is 60% Better 300% Better 50% 250% 40% 200% 30% 20% 10% 100% 150% 100% 50% Strategic Goal (Minimum) 0% % Debt Service Coverage Debt Service Safety Margin % 5.00 x 60% 4.00 x 3.00 x Higher is Better 50% 40% Higher is Better 30% 1.50 x 2.00 x 1.00 x Strategic Goal (Minimum) 20% 10% 0.00 x % May 1, Final Manassas Regional Airport 20

22 Potential Capital Funding Capacity Relative to Key Ratios Debt and Cash Capital Capacity Over 5-Year Period (FY ) Aggressive Conservative Unrestricted Cash/Investments as a % of Expenses Aggressive Conservative Debt Service Coverage 100% 125% 150% 175% 200% 1.00 x 14,480,376 13,545,261 12,610,146 11,675,032 10,669, x 12,517,531 11,646,077 10,774,623 9,903,169 9,031, x 11,083,303 10,297,937 9,488,661 8,657,584 7,826, x 9,970,367 9,206,693 8,443,019 7,679,345 6,915, x 9,134,778 8,388,401 7,642,023 6,895,645 6,149,267 * Blue denotes MRA s Debt and Cash funded Capital Capacity over a 5-Year Period (FY ) based upon the Airport s selected Strategic Goal Minimums. Above analysis assumes MRA utilizes a combination of debt and cash reserves to fund additional capital projects while still meeting key financial benchmarks. Debt is assumed to be issued at 5% with a 20-Year level payment structure. The Airport established minimum Strategic Goal Minimums as follows: 1.50x Debt Service Coverage; 100% Unrestricted Cash/Investments as a % of Expense; and 365 Days Unrestricted Cash on Hand. May 1, Final Manassas Regional Airport 21

23 Peer Comparison: Rates & Charges May 1, Final Manassas Regional Airport 22

24 Peer Comparison: Rates & Charges Tie-Down Rental Rates (Monthly) 40 Hangar Rental Rates (Monthly) Manassas $80 Manassas $350 Culpeper Stafford Warrenton $45 $65 $72 Martin Culpeper $206 $231 Winchester $93 Warrenton $264 Frederick $117 Frederick $277 Leesburg Martin $120 $173 Winchester $360 Peer Group Median $87 Peer Group Median $271 $0 $25 $50 $75 $100 $125 $150 $0 $100 $200 $300 $400 $500 $ Hangar Rental Rates (Monthly) 45 Hangar Rental Rates (Monthly) Manassas $398 Manassas $450 Martin Hagerstown $248 $256 Martin $335 Winchester $360 Winchester $419 Frederick $416 Stafford $425 Warrenton Leesburg $425 $550 Leesburg $600 Peer Group Median $398 Peer Group Median $425 $0 $100 $200 $300 $400 $500 $600 $0 $100 $200 $300 $400 $500 $600 Source: Airport Staff worksheets. May 1, Final Manassas Regional Airport 23

25 Peer Comparison: Rates & Charges 48 Hangar Rental Rates (Monthly) 60 Hangar Rental Rates (Corporate Monthly) Manassas $495 Manassas $1,500 Culpeper $319 Warrenton $500 Stafford $900 Frederick $577 Culpeper $1,000 Leesburg $600 Leesburg $1,900 Hagerstown $603 Peer Group Median $539 Peer Group Median $1,250 $0 $100 $200 $300 $400 $500 $600 $0 $400 $800 $1,200 $1,600 $2,000 Source: Airport Staff worksheets. May 1, Final Manassas Regional Airport 24

26 Performance Measures May 1, Final Manassas Regional Airport 25

27 Performance Measures Key Indicators for General Aviation Airports Total Number of Based Aircraft by Fiscal Year 500 Aircraft Operations (Take Offs & Landings) by Fiscal Year 100, , , , , Fuel Flowage (Gallons Per Year) by Fiscal Year Millions Source: Provided by Airport Staff. May 1, Final Manassas Regional Airport 26

28 Observations / Next Steps May 1, Final Manassas Regional Airport 27

29 Observations MRA s financial performance has outperformed projections and budget estimates, which has resulted in a stronger financial profile and kept the Airport above its Strategic Goal Minimums with respect to Cash Reserves and Debt Service Coverage Ratio. Unrestricted Cash as a % of Expenses have grown from 113% in FY 2014 to 256% in FY Debt Service Coverage has remained above 2.0x despite additional debt issued in CY 2016 (FY 2017) and is projected to remain above the Strategic Goal Minimum over the next 5 Years. MRA s key financial ratios compare favorably with State and National peer airports. The Airport s projected CIP is predominately funded from State and Federal sources. Based upon current reserves and assuming revenue growth of 3% over the next five years, MRA has between $6.1 million and $14.4 million of capacity to fund additional capital projects depending upon how it manages itself relative to Key Financial Benchmarks. Please note: Given the continued strong financial performance and updated projections, the Airport s capital funding capacity has increased by approximately $2.5 Million to $5 Million vs. the 2017 Airport Financial Plan. The Airport s Tie-Down and Hangar Rental Rates are in line with Regional peer airports. May 1, Final Manassas Regional Airport 28

30 Next Steps Update/Refine financial pro forma based on feedback from Airport Staff and Commission Members. Identify additional key capital projects that tie into the Airport s long-term strategic plans. Revisit/Update financial pro forma annually to monitor financial performance and peer comparatives. Review financial goals annually as they relate to the Financial Plan. May 1, Final Manassas Regional Airport 29

31 Appendix A Existing Debt Details May 1, Final Manassas Regional Airport 30

32 Existing Debt Summary 10-yr Payout FY Principal Interest Total Ratio Totals $ 4,210,577 $ 510,189 $ 4,720, ,368 85, , % ,589 77, , % ,907 70, , % ,324 62, , % ,843 53, , % ,466 43, , % ,967 34, , % ,955 25, , % ,926 17, , % ,928 12, , % ,960 10, , % ,023 8, , % ,118 5, , % ,246 3, , % ,956 1, , % Source: City CAFR and Final Numbers. May 1, Final Manassas Regional Airport 31

33 Existing Debt Details Series 2004 VARF FY Coupon Principal Interest Total Total 641,507 64, , % 86,396 16, , % 88,847 14, , % 91,367 11, , % 93,958 9, , % 96,623 6, , % 99,363 3, , % 84,952 1,094 86, Series 2014 D (Refunded part of 2005 C's) FY Coupon Principal Interest Total Total 1,645, ,389 1,854, % 165,000 39, , % 170,000 36, , % 170,000 32, , % 175,000 29, , % 180,000 24, , % 185,000 20, , % 195,000 14, , % 200,000 9, , % 205,000 3, , Series 2016 VARF (Takeout of State & City Loans) FY Coupon Principal Interest Total Total 1,924, ,728 2,160, % 114,971 29, , % 116,742 27, , % 118,540 25, , % 120,366 23, , % 122,220 21, , % 124,103 19, , % 126,014 18, , % 127,955 16, , % 129,926 14, , % 131,928 12, , % 133,960 10, , % 136,023 8, , % 138,118 5, , % 140,246 3, , % 142,956 1, ,053 Source: City CAFR and Final Numbers. May 1, Final Manassas Regional Airport 32

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