PortsToronto Releases 2019 Financial Statements

Toronto (June 11, 2020) – PortsToronto today released its 2019 Audited Financial Statements, together with a Management Discussion & Analysis, marking the organization’s twelfth consecutive year of profitability. All of PortsToronto’s core business operations – Billy Bishop Toronto City Airport, the Port of Toronto, the Outer Harbour Marina, and Property and Other (real estate and investments) – were profitable in 2019, generating $61.0 million in overall revenue with net income of $3.5 million.
Billy Bishop Airport had another strong year in 2019 serving 2,774,175 passengers and generating revenue of $41.7 million, which included $15.4 million in revenue from Airport Improvement Fees (AIF). In 2019, there was $8.7 million in AIF-related capital initiatives and expenditures at the airport and in addition, there was debt service for the Pedestrian Tunnel and other AIF-related bank debt.
The Port of Toronto experienced another record year in 2019, facilitating the delivery of approximately 2.3 million metric tonnes of cargo into the heart of the city and marking the highest recorded cargo levels in 15 years. The number of ships visiting the Port of Toronto increased by nearly 20 per cent over the prior year, with 213 ships visiting the Port of Toronto. The cruise ship business also experienced a record year with 36 ships arriving in port, carrying approximately 12,000 passengers. The Port and its activities reported operating income from all sources of $5.2 million, up from $3.6 million the year prior due to higher cargo handling, storage and property revenues that resulted in an increase in net income.
The Outer Harbour Marina’s operating income marginally decreased to $1.8 million on revenues of $4.7 million. Property and Other, including investments, reported operating income of $2.7 million, up from $2.5 million the year prior.
Beyond PortsToronto’s community and infrastructure investments, PortsToronto contributed approximately $3.1 million in Payments in Lieu of Taxes (PILTs) to the City of Toronto in 2019, as well as paying $2.5 million toward realty taxes. PortsToronto will also pay $3.0 million to the federal government for the Gross Revenue Charge. Since 2009, PortsToronto has invested more than $12 million into community organizations and continued to invest in measures that minimize the environmental impact of its businesses.
“The year 2019 was another strong year for all of our businesses and we are incredibly proud of our financial record as our continued profitability enabled PortsToronto to make meaningful investments that serve the City of Toronto, fuel the economy, and keep people and goods moving,” said Geoffrey Wilson, Chief Executive Officer, PortsToronto. “Our organization entered 2020 in a position of continued strength with a strong balance sheet, growing passenger numbers at the airport, and indications of another record year at the Port. However, the global pandemic confirmed in March 2020, will no doubt have a material impact on the operations and financial position of PortsToronto, particularly at Billy Bishop Airport. In fact, while the Port continues to operate at near-normal levels with regard to commercial cargo, and the Outer Harbour Marina has been able to open for the season, Billy Bishop Airport – like all airports around the world – as well as the cruise ship business will be significantly impacted in 2020 by current travel restrictions and a decline in passenger travel.”
Impact of COVID-19 Pandemic on Current Operations
As a result of the spread of COVID-19, economic uncertainties have arisen. As of March 2020, both commercial carriers – Porter Airlines and Air Canada – have temporarily suspended commercial service from Billy Bishop Airport until late July, or until such time as travel restrictions are reduced and passenger demand increases. The Port of Toronto continues to operate at near-traditional levels for commercial cargo. The passenger cruise ship business has been impacted and is not expected to resume until 2021. The Outer Harbour Marina opened for the summer season on May 16, 2020, and is conducting business at slightly lower levels than normal.
The duration and impact of COVID-19 remain unknown and it is not possible to reliably estimate the impact that the length and severity of these developments will have on the financial results and condition of PortsToronto in future periods.
Annual General Meeting
Due to current restriction on group gatherings, and in respect of physical distancing protocols, PortsToronto will hold its 2019 Annual General Meeting online. The meeting will be held on July 16, 2020, and will begin at 9:30 a.m. Instructions for registering for the meeting will be forthcoming, with all details related to participation being posted to PortsToronto’s website in advance.
About PortsToronto (https://www.portstoronto.com)
For more than 100 years PortsToronto has worked with its partners at the federal, provincial and municipal levels to enhance the economic growth of the City of Toronto and the Greater Toronto Area. PortsToronto owns and operates Billy Bishop Toronto City Airport, which welcomed 2.8 million passengers in 2019; the Outer Harbour Marina, one of Canada's largest freshwater marinas; and, Marine Terminal 52, which provides transportation, distribution, storage and container services to businesses at the Port of Toronto. PortsToronto is committed to fostering strong, healthy and sustainable communities and has invested more than $12 million since 2009 in charitable initiatives and environmental programs that benefit communities along Toronto's waterfront and beyond. PortsToronto operates in accordance with the Canada Marine Act and is guided by a nine-member board with representation from all three levels of government.
Media Contact:
Deborah Wilson
Vice President, Communications & Public Affairs, PortsToronto
E-mail: Deborah.wilson@portstoronto.com